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Wall Street This Week: Earnings Abound, from Herbalife to P&G

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Procter Gamble Sampling
Steve Helber/AP
From the company that made tweeting a global phenomenon reporting quarterly results to a controversial distributor of wellness products hoping to get the last laugh, here are some of the things that will help shape the week that lies ahead on Wall Street.

Monday -- Herbalife May Fight Back

There's no love lost between hedge fund manager Bill Ackman and Herbalife (HLF). Ackman shorted shares of the distributor of weight loss and nutritional products in late 2012, and he's been vocal about his reasons.

Ackman feels that Herbalife is a pyramid scheme that pays its distributors more for recruiting more distributors than for actually selling its wares. Last week, Ackman promised that he would tear Herbalife to shreds with the biggest presentation of his life. Instead, the stock soared after he made his presentation, and Herbalife will have the perfect opportunity to fire back at Ackman on Monday afternoon when it reports quarterly results.

Tuesday -- Home, Tweet Home

One of last year's most prolific initial public offerings was Twitter (TWTR). Despite the limitations of keeping posts at 140 characters or less, Twitter has quickly become an indispensable promotional tool for celebrities, brand managers and food truck owners.

Twitter reports on Tuesday, and it has plenty to prove. It was hot last November, priced at $26 for the IPO and trading at nearly $75 a few weeks later. The stock has gone on to shed roughly half of its value since its December peak. Investors are concerned about Twitter's ability to monetize its traffic without sacrificing popularity.

Wednesday -- Cry for Yelp

Yelp (YELP) went public two years ago, and while the reviews website has held up better than Twitter, it too has seen its shares under pressure since peaking a few months ago.

Yelp is often brought up as a buyout candidate, and it's easy to see the allure. Yelp is the undisputed champ in collecting local venue reviews, and that's magnetic to search giants wanting some more skin in the local online advertising.

Yelp reports on Wednesday, and while analysts see revenue soaring 59 percent they also see Yelp checking in with another quarterly deficit. Sooner or later, Yelp's strong revenue gains will have to translate into profitability that the market can sink its teeth into.

Thursday -- The Mood Is Electric

Tesla Motors (TSLA) has been one of the market's most dynamic stocks, soaring on the prospects of its high-end electric sedan. Tesla's Model S vehicle was always the envy of the automotive market, but the hype is even louder in the marketplace after seeing its stock more than quadruple last year.

There's more to Tesla than its Model S sedan. Next year it will introduce the Model X crossover, and by 2017 we should see the Model III that will be priced more aggressively. Tesla reports on Thursday.

Friday -- Rated PG

The final trading day of the week is typically quiet on the financial news front, but that's not necessarily the case during earnings season. Procter & Gamble (PG) -- the company behind Pampers diapers, Crest toothpaste, Duracell batteries and other household staples -- checks in with fresh numbers on Friday morning.

Procter & Gamble is popular with income investors. It has an impressive streak going with 58 consecutive years of dividend hikes. It will naturally have to keep growing its profitability to keep its payouts climbing, and that's just what the pros see happening on Friday.

Motley Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Procter & Gamble, Tesla Motors, Twitter and Yelp. The Motley Fool owns shares of Tesla Motors and has the following options: long January 2016 $57 calls on Herbalife.

 

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