Wall Street This Week: GoGo Soars, Game Firms Lose
From a struggling burger chain offering up its plan for a turnaround to the country's two top video game publishers hitting "continue" on their latest quarterly reports, here are some of the things that will help shape the week that lies ahead on Wall Street.
Monday -- Let's Send the Hamburglar to Jail
The new trading week kicks off with McDonald's (MCD) hosting a conference call to discuss its new turnaround strategy. Armed with a new CEO, the struggling chain will detail its plan to reverse the negative traffic trend.
McDonald's has posted six consecutive quarters of declining year-over-year comparable-store sales at its U.S. burger joints. Its brand is also getting slammed. A Consumer Reports poll last year found it dead last among the country's leading chains in terms of burger quality.
Tuesday -- Clipping Coupons
Groupon (GRPN) reports fresh financials on Tuesday afternoon. The leading online provider of discounted vouchers has been a disappointment for investors. The stock has shed nearly two-thirds of its value since the company went public at $20 four years ago.
Analysts expect a small profit out of Groupon on a 5 percent uptick in revenue. It may not seem like much, but it's at least taking baby steps in the right direction.
Wednesday -- Take the Joy Out of Joystick, and It's Just a Stick
One of the dozens of notable companies reporting on Wednesday will be Activision Blizzard (ATVI). The video game giant reports a day after Electronic Arts (EA), giving the market a great snapshot of the industry.
It won't be pretty. Analysts see both companies reporting lower revenue and profits than they did during the first three months of last year. Despite the success of new consoles that were introduced in late 2013 and the high-margin promise of digital delivery, it's been a challenge to get die-hard gamers to pay up for new releases.
Thursday -- Wi-Fi at 30,000 Feet
Gogo (GOGO) shares have nearly doubled over the past year. Investors have been warming up to the leading provider of airplane Wi-Fi after initial concerns that competition was going to heat up in this fast-growing niche.
Analysts see another quarter of growth. They expected revenue to climb 17 percent since the prior year's performance. Wall Street's also bracing for another quarterly deficit, but that's not a surprise at this phase of Gogo's growth cycle, where it's investing in growth.
Friday -- All We Need Is a Dolly
The latest original series on Netflix (NFLX) -- "Grace and Frankie" -- debuts on Friday. It stars Jane Fonda and Lily Tomlin, two-thirds of the trio from "9 to 5," a 1980 comedy. The new show is a comedy, a genre that Netflix has started to mine since the success of "Arrested Development" last year and "Unbreakable Kimmy Schmidt" last month.
Motley Fool contributor Rick Munarriz owns shares of Netflix. The Motley Fool recommends Activision Blizzard, McDonald's and Netflix. The Motley Fool owns shares of Netflix. Try any of our Foolish newsletter services free for 30 days. Is your portfolio ready for what this year has to offer? Click hereto check out our free report for one great stock to buy for 2015 and beyond.
