3 Stocks to Watch on Monday: Netflix, Inc. (NFLX), Tesla, Inc. (TSLA) and United Continental Holdings, Inc. (UAL)

Advertisement

Monday will kick off what should be a more lively week, with many returning from spring break and taking last week’s holiday-shortened stretch. They’ll be coming back to dig into the Q1 earnings season, which will see banks and a few tech names dominate headlines.

3 Stocks to Watch on Monday: Netflix, Inc. (NFLX), Tesla, Inc. (TSLA) and United Continental Holdings, Inc. (UAL)Heading into the new week, the spotlight is shining on Tesla Inc (NASDAQ:TSLA) and United Continental Holdings Inc (NYSE:UAL), which made some waves over the weekend, as well as Netflix, Inc. (NASDAQ:NFLX), which will help kick off the earnings slate with its Monday evening report.

Here’s what you should know:

Netflix Inc (NFLX)

NFLX shares are slightly on the rise Monday morning, just a few hours ahead of the company’s first-quarter earnings report.

Analysts are expecting a boffo quarter for the streaming video giant, estimating sales growth of nearly 35% to $2.64 billion, filtering down to a 516% increase in earnings (from 6 cents per share to 37 cents). The though is that $1.48 billion of the top line will come from domestic streaming, with another $1.05 billion from international streaming and $121 million in the still-existent DVD shipping business.

One of the big worries for Netflix is its difficult path to adding more U.S. subscribers, especially amid a set of content releases that were less than impressive. That’s worrisome given how much Netflix is spending to create said content — $6 billion in 2016, and a projected $7 billion next year. And given slowing U.S. subscriber growth, it’s likely that NFLX will have to reach even further into its pocket for additional ad spending and other marketing.

On the flipside, if Netflix continues its breakneck international growth, that might be enough to get investors to mostly ignore any weakness domestically.

Netflix’s report is due out after Monday’s bell. NFLX shares are up about 15% year-to-date.

United Continental Holdings Inc (UAL)

United was given a weekend to duck back into the shadows and stop generating negative headlines … and failed miserably.

A couple that was trying to travel from Houston to Costa Rica for their wedding this weekend claim that they were kicked off a United flight. The couple says a man was lying across their seats on a half-filled flight, so they sat a few rows forward in the same area of the plane.

United has countered by saying that the couple were attempting to upgrade their seats to a more comfortable part of the plane.

“We thought not a big deal, it’s not like we are trying to jump up into a first-class seat,” Michael Hohl told the news station. “We were simply in an economy row a few rows above our economy seat.”

The incident follows a PR nightmare in which United ordered a man to dragged off a flight by authorities, leaving him with a bloody nose, while trying to procure seating for some of its own personnel. The backlash prompted United to change a policy that now demands a flight crew must be seated on their flight at least one hour ahead of departure time.

UAL shares are off 5% year-to-date.

Tesla Inc (TSLA)

Reports are starting to trickle out about how Tesla will begin producing its new Model 3.

InsideEVs, citing the Tesla Model 3 Owners Club, reports a “source who has been quite reliable so far” says Tesla will start by building similarly configured Model 3s, and only build custom models later on — “more of an inventory sales approach.”

Those who want all-wheel variants of the Model 3 will likely have to wait until next year, according to a statement previously written by Tesla CEO Elon Musk.

The upside to this particular approach is that it would streamline the process, helping to cut down on errors early on, and speed up production. Tesla is hoping to begin full-scale production in July of this year.

TSLA, in the meanwhile, has enjoyed breakneck gains of more than 40% so far in 2017.


Article printed from InvestorPlace Media, https://investorplace.com/2017/04/3-stocks-to-watch-on-monday-netflix-inc-nflx-tesla-inc-tsla-and-united-continental-holdings-inc-ual/.

©2024 InvestorPlace Media, LLC