3 US stocks to watch closely this week: Oracle, Adobe Systems, Twitter

  • Oracle’s earnings may show its efforts to move customers to the cloud are working.
  • Adobe’s business is affected by currency fluctuations, seasonal changes in demand, and the decision to end sales in Russia and Belarus.
  • Musk’s lawyers said they found another breach of contract in the Twitter deal.

Inflation and interest rates are expected to dominate the market trading agenda again next week as investors await August numbers ahead of the Federal Reserve’s next rate-setting meeting.

Inflation in the United States is near its highest level in four decades, prompting policymakers to keep raising interest rates to reverse the trend. Market participants expect a drop of 75 basis points when its members meet on September 21.

In addition to the monthly CPI release on Tuesday morning, an inflation reading is scheduled for Wednesday, while reports and are due the following day.

Shares snapped a three-week losing streak last week, closing at 4,067.6, gaining 3.6% on the week. Amid concerns about inflation and the trajectory of US monetary policy, here are three stocks we’re keeping a close eye on this week:

1. Oracle

Software and infrastructure giant Oracle (NYSE: ) is scheduled to report its fiscal 2023 first quarter on Monday, September 12, after the market closes. Analysts had expected earnings of $1.08 per share on revenue of $11.33 billion.

In June, Austin, Texas-headquartered Oracle reported strong earnings for the prior quarter, showing its efforts to move customers to the cloud are paying off. Plus, the acquisition of medical records provider Cerner Corp (NASDAQ: ). helped to accelerate growth.

InvestingPro+’s Oracle Fair Value

Source: InvestingPro+

Oracle is trying to fuel the growth of its cloud business and create a bigger footprint in the booming market, which is led by Amazon (NASDAQ: ), Microsoft (NASDAQ: ), and Alphabet’s (NASDAQ: ) Google.

Cloud sales growth has been more than 20% since Oracle, the second-largest software maker by revenue, began disclosing it last year. Oracle shares, which closed Friday at $75.91, are down 12% this year, better than the benchmark.

2.Adobe Systems

Adobe Systems (NASDAQ:) is scheduled to release its {{erl-6373||earnings} for the third quarter of fiscal 2022 on Wednesday, September 14 after the market closes. The maker of Photoshop and other software and infrastructure products is expected to report earnings of $3.34 per share on revenue of $4.44 billion.

San Jose, Calif. Adobe, which competes with Salesforce.com (NYSE: ) in the marketing technology and e-commerce segment, is trying to drive growth by expanding its business offerings while strengthening its core marketing software business.

Adobe Financial Health by InvestingPro+

Adobe Financial Health by InvestingPro+

Source: InvestingPro+

In June, Adobe cut its annual revenue forecast, saying its business would be affected by currency fluctuations, seasonal changes in demand, and the decision to end sales in Russia and Belarus after the invasion of Ukraine . . Adobe, more than 40% of whose sales are made outside the Americas, said its profit would be reduced by about $175 million in the second half of the fiscal year due to currency fluctuations. .

Adobe shares, which closed Friday at $394.60, have fallen about 30% this year.

3.Twitter

Twitter (NYSE:) stock could come under pressure after Elon Musk’s lawyers claimed on Friday they had found another breach of a sales contract, giving the world’s richest man another reason to back out its $44 billion purchase of the social media platform.

Twitter Weekly Chart

Twitter Weekly Chart

Source: Investing.com

Musk’s lawyers, in a filing Friday, said that as part of the purchase agreement, Twitter had to notify the billionaire before spending $7.75 million in a June 28 separation deal with Peiter Zatko, the former security chief. of the company.

Musk’s lawyers said they learned of Zatko’s settlement on Sept. 3, when Twitter filed court documents. Zatko is due to testify before a US Senate committee next week, according to a Bloomberg report, about his concerns about poor security and privacy and the number of bots on the platform. He has also been subpoenaed to testify in the case against Twitter, according to Bloomberg.

Twitter stock, which closed at $42.19 on Friday, has been highly volatile amid a legal battle with Musk, who wants to end the acquisition of the company on the grounds that the platform defrauded him. he and the investors, in the amount of spam and bot accounts. with its more than 230 million users. The trial will begin next month,

Warning : At the time of writing, the author owns shares of Microsoft.

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Today’s market makes it harder than ever to make good decisions. Consider the challenges:

  • Inflation
  • Geopolitical turbulence
  • Disruptive Technologies
  • Interest increases

To manage them, you need good data, effective tools to sort through the data, and insight into what it all means. You need to take the emotion out of investing and focus on the basics.

For that, there’s InvestingPro+, with all the data and professional tools you need to make better investment decisions. Read more >>

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