Wall Street This Week: Zynga, Groupon Try to Recover
Monday -- Kors Over Coach
The past few quarters have seen two trends for premium handbags: Coach (COH) is losing market share, and Michael Kors (KORS) is gaining. We should see more of that to kick off the new week with Kors reporting on Monday. Coach follows a day later.
It should be quite the disparity. Analysts see sales at Kors soaring 33 percent, and that's decelerating growth. Coach is expected to post another period of declining sales. Wall Street pros are betting on an 11 percent decline. Fashionistas can be fickle.
Tuesday -- Let's Make a Deal
Daily deals were all the rage when Groupon (GRPN) went public at $20 a share three years ago. Time hasn't been kind. Groupon has shed roughly two thirds of its value. However, Groupon has tried to rediscover its former growth by expanding into actual merchandise and offering its growing list of local merchant partners some business services.
The stock has been meandering in the single digits for months, but analysts are holding out for healthy growth when Groupon reports on Tuesday afternoon. Then again, with the stock trading at a fraction of where it was when it went public, Groupon is probably hoping that its own stock becomes the site's next hot deal.
Wednesday -- Cool Beans
Keurig Green Mountain (GMCR) has bounced back nicely since many naysayers left it for dead. When two key patents governing the K-Cup portion packs expired in late 2012, some analysts feared that its high-margin K-Cup business would be overrun with cheaper third-party suppliers. Competition has intensified, but Keurig Green Mountain has still found ways to extend partnerships and grow its overall business.
Things are just getting started for Keurig Green Mountain with a new Keurig 2.0 platform and the Keurig Cold carbonated beverage maker in the pipeline. We may get some insight on the java heavy's future on Wednesday when it reports on Wednesday afternoon.
Thursday -- Words With Ends
Groupon isn't the only former dot-com darling to be roughing it these days as a busted initial public offering. Zynga (ZNGA) went public at $10 a few weeks after Groupon in late 2011, and it too has gone on to shed more than two thirds of its value.
Zynga's problem is that its revenue and gross bookings peaked in 2012. The success of "FarmVille," "Draw Something" and "Words With Friends" proved fleeting, and the social gaming developer has struggled to put out new games that topped the popularity of its earlier releases.
After several quarterly losses, analysts see Zynga breaking even when it reports fresh financials on Thursday. That's not great, but for a stock that's trading for a little more than its cash on hand it's a pretty encouraging thing.
Friday -- At the Movies
The final trading day of the week is typically quiet on the financial news front, but it will be busy as your neighborhood multiplex. Several of the last potential summer blockbusters open on Friday, including "Teenage Mutant Ninja Turtles," "Into the Storm" and "The Hundred-Foot Journey." Given the three well-marketed new releases, it may be a great time to head to the theater to see one of the earlier summer releases that you may have missed.
Motley Fool contributor Rick Munarriz owns shares of Keurig Green Mountain. The Motley Fool recommends Coach, Keurig Green Mountain and Michael Kors Holdings. The Motley Fool owns shares of Coach and Michael Kors Holdings. Try any of our newsletter services free for 30 days.