The Federal Reserve’s rate hikes will increase Futu’s net interest income. The company looks attractive as it gains market share from weaker, smaller brokers. Still, it will not rely heavily on coupons and discounts to drive growth.įutu Holdings operates a digitized brokerage and wealth management platform. After improving on operating leverage, the next phase of Eats is expanding offerings. In addition, it will grow Coupang WOW, a subscription service similar to that of Amazon (NASDAQ: AMZN) Prime.Ĭoupang will expand its Eats offering, a food delivery service. In the next few years, EBITDA margins will expand beyond the 7% to 10% range. CEO Kim attributed the growth to an unmatched customer experience driving deeper engagement.Ĭoupang improved its operating efficiency, particularly around process and technology.

For example, its active customers grew to over 18 million, up 13% Y/Y. Chief Executive Officer Bon Kim is confident that the company will grow its e-commerce revenue faster than the market. In the last quarter, Coupang posted revenue growth of 32% YOY. To get there, it needs to expand its market, grows revenue, and increase operating margins. It's proven to be correct in 14 of the last 15 years.Coupang (NYSE: CPNG) is not yet profitable. Using these criteria, the firm compiled a list of stocks that it expected to rise after earnings and a list of names it expected to fall after reporting.

Marshall's team developed the list by working with Goldman Sachs' equity analysts to determine which stocks would receive positive earnings revisions, which he noted was the most important factor for determining whether a stock would rise or fall after reporting earnings.īesides examining earnings revisions, Marshall's team also looked at stocks' implied move, short seller interest, upside to their Goldman Sachs-assigned price targets, and growth factor. All 10 of the names have at least a 53.8% probability to rise after they release their earnings reports, according to the firm. In his note, Marshall listed 10 stocks that Goldman Sachs analysts could surge up to 15.6% upon reporting earnings. 'Based solely on the current level of put-call skew, we would expect the S&P 500 to be up 5.1% over the next three months,' Marshall wrote. The measure currently shows that near-term fear is elevated, which could mean that a bullish relief rally might materialize as the Q2 earnings season begins. Marshall added that, conversely, bullish call options are less in vogue right now.īut loading up on bearish bets right now may be a mistake, Marshall wrote, given that the put-call normalized skew for single stocks has proven to be a reliable contrarian indicator for the S&P 500 in the past six years. Puts are options contracts that become profitable if a stock falls by a certain amount in a given timeframe. Traders appear to be betting on more downside ahead by buying put options, according to John Marshall, the head of derivatives research at Goldman Sachs, in a mid-July note. The fact that inflation continues to accelerate, even as interest rates rise, is only complicating matters. The S&P 500 is down 19% for the year, and there's a growing consensus that a recession may be starting as financial conditions tighten drastically and the economy shows signs of weakness. After such an ugly year for US stocks, it's hard to blame them. Investors are bracing for the worst by positioning bearishly as the Q2 earnings season begins, according to Goldman Sachs.

Here are 10 stocks that can rise by up to 15.6% after reporting earnings this quarter.

But betting on market declines may be a mistake, according to Goldman Sachs.

Fears about a recession have gripped the market, leading traders to buy bearish put options.

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