The Q3 earnings season is almost done with 90% of the S&P 500 companies having reported already, but this week there are still some interesting earnings to watch. Today, earnings from Chinese companies such as Baidu, iQIYI and JD.com will be watched closely as China has bounced back from the Covid-19 crisis faster than most countries bolstering investor confidence in the Chinese equity market.
On Wednesday, earnings from the Chinese EV-maker NIO will grab the attention with the stock price up 1,733% since the lows in March as investors are betting heavily on the Chinese EV market and this company is the most pure expression an investor can get. But with Friday’s close the company has hit an enterprise value of $62bn which against expected revenue of $2.3bn in 2020 is a very high valuation, not only in general, but in particularly for a carmaker. On Wednesday, we will also get earnings from Walmart and Home Depot which we expect to deliver strong earnings driven by high disposable income in the US from Covid-19 transfers driving high consumer spending on home improvements and food. Sea Ltd also reports on Wednesday, and this fast growing Singapore-based gaming and e-commerce company saw almost a doubling of its revenue in Q2, so expectations are high going into this earnings release.