Week Ahead: Apple, Palantir and Airbnb

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0:04 Podcasts. Radio. News. The Stock Movers Report. Your roundup of companies making moves in the stock market. Harnessing the power of Bloomberg data. Let's take a look now at some stocks-making news in the week ahead. I'm Nathan Hager, joined by Bloomberg earnings reporter Chloe Mellie, because we've got more earnings right out the gate with Apple on Monday. There have been so many jitters around the AI trade in recent weeks. Chloe, does Apple factor into that as far as big tech goes? Yeah, absolutely.

0:36 And Apple is going to be the really big one next week, really starting of the week. And there's going to be two main things in focus in addition to those AI jitters that you were talking about. So first of all, there's going to be the impact of rising costs for memory chips. So the memory supply crunch has previously forced Apple to raise prices And to extend wait times on some products, that's had a really negative impact on the second quarter. And so that supply crunch is still very much happening. And so the impact of that on the third quarter is going to be really key to watch. The other thing to keep in mind is that we've got those customer complaints about the iPhone Duo, which is the foldable phone that Apple recently unveiled. And

1:23 some users have reported malfunctions like cracks or like a white patch. forming on the display. So any update on that will, of course, be of interest. But so far, though, it seems that demand for the iPhone Duo is very strong. It also seems that Apple is kind of on a roll introducing new products. Just this week announced a MacBook Pro that includes a touchscreen. So any indicators on how much demand there is and whether that's helping Apple withstand that broader downturn that we've seen in the laptop market, that's also going to be very important. And after we get Apple, we'll have had all of the Mac 7 except for NVIDIA, so we'll be able to pass some of those big tech questions and what those have been

2:07 over this quarter.

2:09 Yeah, so we'll be waiting for those NVIDIA results. I think those will come out for another couple of weeks here, but it's going to be really interesting to hear what Apple has to say as far as their outlook as we get closer to the holiday season as well. Sticking with big tech, we also hear from Palantir. after Monday's close.

2:26 What are we expecting from this tech company?

2:29 Yeah, it could be actually quite a good quarter for Palantir. So, revenue is expected to hit a new high, driven in large part by demand from the U.S. government, but also demand from corporate partners. So, the big question for Palantir is how it's going to be able to really stand out in a competitive, very competitive, increasingly crowded market as well. So, some of the fears that investors have had over the last few months is that the business would suffer from AI developers like Anthropic selling their own software and also that governments outside of the U.S. would increasingly be working with their own kind of domestic tech companies rather than rely on big U.S. tech companies like Palantir. So, Those

3:16 are some of the threats facing the company. And to counter some of these, Palantir has been expanding its network of commercial partners like PwC or Fujitsu, for example. And analysts have said that this would help with demand. So, we'll see how that shakes out. It is worth keeping in mind that Palantir has called the commercial demand for its data analytics tools otherworldly last quarter. So we'll see if it lives up to that level of success for this quarter.

3:45 Yeah, it seems like there's a lot of bullishness baked into this stock as well with like, what, 30 buy ratings on the Bloomberg terminal, and it's beat just about every time over the last few quarters here. So definitely one to watch as well. Later on this week, we're going to hear from Airbnb. How's travel demand holding up at this time of elevated fuel prices?

4:09 Well, it's quite interesting because it seems that it is actually holding up quite well. So, Airbnb earnings are actually expected to hit the highest level in three years. And we've got other names within that travel sector also reporting next week and expected to report strong results. We've got Booking and Expedia as well. And the expectations are actually also quite high for those. So, it seems that travel demand is resilient despite that weak consumer confidence, despite those flight tickets rising, of course. The Middle East remains a bit of a weaker region, obviously. But then in other regions, it seems that people are booking flights and they are checking into hotels. So, it could be a pretty solid

4:54 report there. There's, of course, some challenges to keep in mind for that broader travel sector. As with many other industries, the threat of AI disruption is, of course, top of mind. And there's the risk of AI agents, you know, handling the tasks that a booking or an Expedia would do, you know, the travel planning, the booking itself as well.

5:14 And Airbnb has previously said that, you know, becoming a sort of background data layer or inventory source would be an existential risk for the company. So, any information on how Airbnb is sort of planning to mitigate that would be really important. And then in terms of travel demand itself, Of course, the last few weeks have been marked by a lot of unrest in France and in Italy, other parts of Europe as well. So, investors will want to know how much of an impact it's having on the current quarter as well.

5:47 The Stock Movers Report from Bloomberg Radio. Check back with us throughout the day for the latest roundup of companies making news on Wall Street. And for the latest market-moving headlines, listen to Bloomberg Radio live. Catch us on YouTube, Bloomberg.com, and on Apple CarPlay and Android Auto with the Bloomberg Business app.