The Week Ahead: Netflix, P&G, and Intel to Report Earnings

Moving on to the week ahead, we expect earnings to start rolling in on Tuesday from Netflix NFLX, Bank of America BAC, and Schwab SCHW. We are also expecting Procter & Gamble PG, UnitedHealth Group UNH, and Morgan Stanley MS to report on Wednesday, followed by Intel INTC and International Business Machines IBM on Thursday.

As one of the largest online video providers in the United States, Netflix, which has a Morningstar Economic Moat Rating of narrow, has rapidly expanded abroad and now has more subscribers outside of the U.S. than inside. The streaming video-on-demand service’s massive data set tracks every customer interaction and uses the data to purchase content as well as finance and produce original material. Netflix shares this competitive space with larger firms like Disney and WarnerMedia, both of which have launched their own SVOD platforms.

The pandemic has supported consumers’ preference for personal and home-cleaning and health-related fare, therefore propping up P&G’s mix of essential, trusted items. Even if a prolonged recession occurs and consumers change their willingness to spend, we think the firm’s brands should be resilient from potential trade down or out.

Intel recently transitioned its former CTO Pat Gelsinger to CEO, who was instrumental in transitioning VMware from a pioneer in data center virtualization into a critical component of cloud infrastructure. During this uncertain time, we think Gelsinger’s technical and engineering expertise will serve the firm well.