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Let's take a look now, add some stocks making news in the week ahead. I'm Nathan Hager, joined by Bloomberg Equities reporter Matthew Griffin with more earnings to stay on top of this week, Matthew, maybe the biggest name that we're looking at is the biggest name in entertainment, Walt Disney, reporting earnings on Wednesday, the first one under the new CEO, Josh Tomorrow, if I'm not mistaken, Is that right?
Yes?
And Nathan, I think that's going to put a lot of focus on what the company says here, on the questions that they take from analysts, and on what the new CEO has to say. You do have relative optimism among analysts who expect single digit growth in both adjusted earnings per share and revenues. That's a dollar fifty one in EA and nearly twenty five billion dollars in revenue.
But if you think about the news for this company in recent months, a lot of it has again been about what the company has to say so on the financial side, you had to share sell off. After the last earnings, Disney said they expected only modest growth in the March quarter as they, for example, had trouble getting international visitors to come to their parks. It's getting more expensive to air live sports. Now under Josh Tomorrow's tenure, you have this dust up with the Trump administration yet
again over Jimmy Kimmel. I think analysts are really going to pepper this company with questions and are going to be listening closely as our investors to what they have to say.
I mean, what is the pressure on Tomorrow to outperform given the stock performance so far this year?
Yes, you know, it's interesting. I do think investors had some level of patients with Bob Iger, even though the company wasn't necessarily seen as innovating or as growing to the extent that people wanted. So he may have a bit of runway, and he's making some moves. The company does have plans to cut jobs in an attempt to cut costs. But I do think there's going to be an expectation eventually of better resultant, better stock performance than
Eiger delivered in his second tenure at the company. The stock was up during his time as CEO, but badly trailed the broader market.
All right, so that could be the marque event this week. We hear from Disney on Wednesday, but before that, after all the tech earnings we saw last week, we hear from one more name in the chip space on Tuesday. What are we looking for from Advanced micro Devices?
Well, Nathan, I think investors are going to be expecting a lot from the chip maker. You have the shares trading at all time highs, and if you think about what we've seen in recent weeks, you had blockbuster outlooks from Intel, from Texas Instruments, share reactions to match. Now you've had the sort of hyper scaler technology. Companies such as Meta raised their expectations for capital expenditures this year.
If you look at the actual numbers that analysts are looking for, they're looking for just under nine point nine billion dollars in revenue. That's in the range that AMD gave when they last reported earnings. That being said, that was seen as disappointing at the time, you had the stock's steepest drop in years after that, and if you look at the stock rally now, investors may be looking for some upside there.
Yeah, I mean there's a lot of upside already with this stock. It's been surging since the start of the year. Is this almost a price to perfection moment for amd so?
Yes, this stock up sixty two percent year to date, and it does feel like the entire semiconductor ecosystem is price to perfection. You had the Philadelphia Semiconductor Index just went on a record long winning streak. You just look, basically, there's green across the board. And yet at the same time, there are questions about the profitability of investments in artificial intelligence.
Investors just constantly have their eyes on that, and I do think each individual company is going to be expected to deliver something concrete for investors to chew on.
Also on Wednesday, we hear from Marriott International. Always curious to see how travel names are doing given all that's going on in geopolitics.
Yes, And the really interesting thing here with Marriott International is that this also looks like a stock that may be priced for perfection. Even during the war in Iran, the stock is trading close to all time highs again, even though hotels in the Middle East, many of them are near empty, even though consumers are facing pricier airfares, are facing higher fuel costs that are eating into their budgets.
Right now, investors are positioned in hotel names as if that's not going to matter, as if there's going to be enough upside, especially from for example, higher income consumers, to wash all of that away. But we've started to see some weakness showing up, for example in outlooks from Hilton and elsewhere in travel from booking holdings. I think investors and analysts want to know whether Marriott's under some of that same pressure.
The Stock Movers report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street and for the latest market moving headlines. Listen to Bloomberg Radio Live, catch us on YouTube, Bloomberg dot com, and on Applecarplay and Android Auto with the Bloomberg Business app.