Tesla, Apple, DocuSign: 3 US stocks to watch closely this week

Investors will continue to look for signs of the overheated economy cooling in the week ahead as stocks have struggled to maintain their bullish momentum over the past week.

With Friday’s sell-off, the major indices ended the four-day week with losses after posting substantial gains the previous week. Soaring inflation is the main hurdle preventing equities from getting back on a sustainable recovery path after entering a bear market last month.

Headline inflation, including food and energy, rose to 8.5% in March, near the highest level in four decades, forcing the central bank to aggressively raise rates of interest. Some economists, however, hope the CPI will halve by the end of the year. The next CPI report is due out on Friday.

With investors focusing on inflationary pressures and the interest rate outlook, here are three stocks we’ll be watching over the coming week:

1.Tesla

Tesla Inc (NASDAQ:) stock will remain in the limelight after CEO and co-founder Elon Musk said in an email to employees that it was time for the electric car maker to tighten its belts and to prepare for a difficult journey.

Tesla plans to cut its workforce by about 10%, according to an email quoted by Reuters in which Musk noted he had a “super bad feeling” about the economy. The email, titled “pause all hiring worldwide,” was sent to Tesla executives on Thursday, according to the report.

Tesla stock fell nearly 9% after the report was released, showing investors’ concerns about the automaker’s growth plans for this year. Tesla stock closed Friday at $703.55.

Tesla has weathered global supply chain disruptions and pandemic-related lockdowns in China much better than other producers. The company reported record global sales volume in its most {{erl-13994|||recent} quarter. Musk also predicted “significantly higher” growth for this year.

2.Apple

Apple (NASDAQ:) will likely announce major changes to iPad software next week at its annual Worldwide Developers Conference, which begins Monday, June 6. The biggest change, according to media reports, will be to the iPad’s software which will further transform the device into a laptop.

Apple D1

The new updates are Apple’s biggest software announcement of the year and set out Apple’s public platform strategy for the next 12 months. For example, iOS 16, as Apple is expected to call the new software for iPhones and iPads, could include improved notifications, a redesigned lock screen, and updates to the Messages and Health apps, according to Bloomberg News.

The new features and updates could spark some buzz around Apple shares, which have fallen more than 18% this year amid the widespread selloff in tech stocks.

Investors view Apple as a safe haven because of its large global market share in the cellphone market, its long-term profitability and its ability to constantly innovate. Its shares closed Friday at $145.38.

3.DocuSign

Electronic signature platform DocuSign (NASDAQ:) is expected to report its first quarter fiscal 2023 results after market close on Thursday, June 9. Analysts expect earnings of $0.56 a share on revenue of $683 million.

DocuSign D1

The San Francisco-based applications software company has seen explosive growth for its digital services over the past two years as the shift to remote working and social distancing prompted companies to demand digital signatures from workers , clients and customers working from home, as they managed their contracts and crucial documents electronically.

However, there are now signs that the company’s growth has already peaked. In March, DocuSign provided a disappointing full-year revenue forecast. The company expected current fiscal year revenue to be between $2.47 billion and $2.48 billion, well below StreetAccount’s forecast of $2.61 billion. dollars.

DocuSign stock, which has lost 45% this year, closed Friday at $83.78.

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