Facebook hopes to pick up where Google and Snap left off in a wild day of gains

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Alphabet Inc. and Snap Inc. have warned of severe drops in the online advertising market over the past week and have seen their inventories increase.
Facebook Inc.
FB,
-2.44%

can only hope to extend this trend.

Facebook has previously said it is experiencing record usage, but advertisers are cutting marketing budgets – which means more costs to help desperate consumers connect with others when stranded at home during the COVID pandemic -19, but no guarantee that anyone will pay higher rates to advertise these users. On Wednesday afternoon, Facebook will put more figures behind these statements with the results for the first quarter.
Facebook in the COVID-19 era: will advertisers spend while the coronavirus spreads?

But investors don’t seem to care too much. Break
BREAK,
-2.95%

revealed that ad sales were down two percent when first quarter figures were released last week, and Alphabet executives provided similar figures on Google
GOOGL,
-3.01%
GOOG,
-3.30%

Tuesday afternoon. Snap stocks had their second best day of all time in response to earnings, and Alphabet stocks headed higher after Tuesday trading hours and dragged Facebook and Twitter Inc.
TWTR,
-4.03%

along the ride.
Snap and Google have both managed to ward off fears of a prolonged slowdown, and it will be up to Mark Zuckerberg and Sheryl Sandberg to do the same when they speak on Wednesday afternoon – if they can get the attention of many other highly publicized income reports. , including Microsoft Corp.
MSFT,
-2.43%

and Tesla Inc.
TSLA,
-3.71%

. Wednesday offers one of the richest winning days this season, with 37 S&P 500 members
SPX,
-0.52%

and two Dow Jones Industrial Average
DJIA,
-0.13%

components whose report is expected.
Here are some other highlights.
• Tesla’s short-term pain can translate into long-term gain, but early investors need to find out about the tough parts on Wednesday afternoon. “We believe Tesla was hit hardest by China’s slowdown in the first quarter, while the second is more likely to reflect weakness in the US and European markets,” said Joseph Osha, analyst at JMP Securities. While Osha expects the company to be “significantly affected” by the pandemic this year, he and some other analysts also believe that Tesla can emerge from the crisis in a relative position of strength, as its competitors could having to reduce their ambitions of electric vehicles to survive in the short term. Ford failed to meet even lower sales and profit estimates on Tuesday.
Read: Tesla stock rises high as investors wait to hear the effects of the coronavirus
• Cloud computing and Microsoft collaboration tools likely increased sharply in the March quarter as the COVID-19 epidemic accelerated demand for digital services, but the driving force may be offset by more problematic areas of the business on Wednesday afternoon. Windows, server products, research and LinkedIn could face pressures in the midst of a crisis and weigh on Microsoft’s overall performance, wrote Nick Yako of Cowen & Co.
• Boeing Co.’s
BA,
+ 2.03%

The rocky flight is expected to continue as the company faces a sudden collapse in air travel alongside its existing 737 Max woes. The good news is that the pandemic is not an “extinction-level event” for Boeing or the airline industry, according to Benchmark analyst Josh Sullivan. It could even give the company an excuse Tuesday morning to make beneficial strategic changes. “Backlog support [for the 777x] was already flickering before COVID-19; however, the disruption is now giving Boeing cover to opt out of what were previously probably overly aggressive production plans, ”he wrote.
Read: Boeing faces crisis not unique to coronavirus, but no less serious
• Mastercard Inc.
MY,
-0.19%

offers a morning read on the consumer spending landscape, and investors will discover to what extent the tailwind of e-commerce is causing payment companies to dramatically drop in-store spending and cross-border travel. “With a stock rebound, coupled with what should be a set of volume measures that deteriorates before the June quarter (strongly influenced by the low cross-border volumes), we think the print configuration is tilting negatively, “RBC Capital Market analyst Daniel Perlin wrote.
Don’t miss: how can the companies that help us pay for the goods survive a coronavirus outage?
Another look at spending trends comes from eBay Inc.
EBAY,
-1.38%

later in the day.
• The COVID-19 epidemic served as a lifeline for Blue Apron Inc. in difficulty.
APRN,
+ 10.67%

and the company will share how its logistics branch has responded to the growing demand for its meal kits. Blue Apron should also provide early insight into retention and satisfaction trends as it seeks to keep customers on board even after consumers can more easily get food from outside their home.
See more: Blue Apron increases capacity and hires workers to meet demand for coronaviruses
• Chip customers are looking to build an inventory, but Qualcomm Inc.
QCOM,
-0.90%

the markets “don’t look healthy,” wrote Stacy Rasgon of Bernstein. He is worried about an already weak smartphone market, as well as problems in the automotive sector. Qualcomm’s afternoon report could also provide some early indications of what the coronavirus crisis means for the 5G landscape. Many smartphone manufacturers are expected to make 5G devices a priority this year, but the coronavirus epidemic could cause delays.

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