3 Earnings Reports Every Investor Should Watch Next Week

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The S&P 500 is currently worth $20 trillion for the first time ever, after gaining 25% over the last 12 months, and the Dow is inching quickly toward its own new all-time high. But, tech stocks have outperformed even more over the past year, with the Nasdaq posting 34% gains over the comparable time period.

3 Earnings Reports Every Investor Should Watch Next Week

Source: Flickr

Of course, there's been plenty of variance in performance for individual stocks, while the tech world comes with even more risks and question marks. Next week, three big tech names - electric automaker Tesla Inc (NASDAQ: TSLA ), payments platform Square Inc (NYSE: SQ ) and wearables leader FitBit Inc (NYSE: FIT ) - will all report numbers for their most recent quarters on the same day: Feb. 22.

Here's what investors should watch.

3 Earnings Reports Every Investor Should Watch: Tesla (TSLA)

Tesla has been on fire of late, gaining 60% over the last year and 27% just a month and a half into 2017. But, that momentum actually spurred a sell-off yesterday. Well, more specifically, it spurred a "sell" call from UBS analyst Colin Langan, which investors took to heart to the tune of a nearly 4% one-day drop.

Tesla Motors Inc (NASDAQ:TSLA)

Source: Mike Lau via Flickr (Modified)

For the current quarter, Tesla is expected to post a loss of 35 cents per share. While that's a smaller loss than what the company posted a year ago, Wall Street was actually expecting a profit as of three months ago.

Plus, all estimates for TSLA stock have been getting worse. The loss on tap for next quarter has quadrupled in just three months; the loss on tap for next year has gone from 33 cents to $1.18. Thus, even an earnings beat would come over a lowered bar, which might act as an anchor on any potential pop.

Further, while Tesla topped Wall Street's expectations last quarter, it missed by a wide margin the three prior. Langan said that he expects risk as a result of the company's SolarCity acquisition, calling it a distraction from Model 3 test production, slated to begin on Feb. 20.

3 Earnings Reports Every Investor Should Watch: Square (SQ)

Square has also posted significant gains over the last 12 months, but in a slightly more dramatic fashion. SQ shares fell around 40% last spring, just six months after Square hit the public markets. But, the stock has been climbing out of that hole ever since. Add it up, and Square stock has still managed to gain upward of 50% in a year and is approaching its old highs.

High-Impact Tech Earnings: Square Inc (SQ)

Source: Via Square

Will earnings be enough to propel Square to never-before-seen levels? The company has posted an "earnings" beat in the two most recent quarters - although there have been no earnings in sight, technically. Square is not yet profitable and is again on tap for a loss, this time to the tune of 7 cents per share.

Investors betting on SQ are likely hoping for a buyout, though, making earnings less important than they would be for more established, profitable tech companies. Or they're playing the super long game, betting on the mega-trend of payments. Still, if the numbers disappoint widely, expect many folks who have just regained their losses to take the money and run

3 Earnings Reports Every Investor Should Watch: Fitbit (FIT)

While Tesla and Square both dropped a bit yesterday, Fitbit posted a nice 2% one-day gain. That's the good news. The bad news is that, unlike shares of the previous two companies, FIT stock has generally been headed nowhere but down.

FIT Stock: Fitbit Inc (FIT) Stock Hurts, But Here's Why I'm Still a Believer

Source: Via Fitbit

Fitbit stock has lost more than 56% of its value over the last 12 months, and that's just the extension of a trend that's existed for the last five years.

And, FIT stock is moving in the wrong direction because, well, everything has been. This quarter, for instance, earnings are expected to end up 5 cents in the red vs. a profit three times as large the same time last year. Just three months ago, Wall Street was actually expecting earnings growth, too. Now, analysts expect the loss to come on the back of a 19% sales decline.

Fitbit is facing tough competition in the wearables space, and that's just the beginning of its problems. On top of that, the company is facing a legal battle with Jawbone , which alleges the former stole employees and trade secrets. Translation: It's going to take a lot to regain investor confidence - i.e. more than one earnings report.

Hilary Kramer is the editor of GameChangers , Breakout Stocks , High Octane Trader , Absolute Capital Return and Value Authority . She is an accomplished investment specialist and market strategist with more than 25 years of experience in portfolio management, equity research, trading, and risk management. She has extensive expertise in global financial management, asset allocation, investment banking and private equity ventures, and is regularly sought after to provide her analysis on Bloomberg, CNBC, Fox Business Network and other media.

The post 3 Earnings Reports Every Investor Should Watch Next Week appeared first on InvestorPlace .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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