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Wall Street This Week: Spain Mobilizes; Staples Steps Up

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Spain Wireless Show
Manu Fernandez/APVisitors at the Mobile World Congress trade show in Barcelona, Spain, February 2014
From the resurgence of a trendy smartphone accessory-maker to challenges for a once-thriving teen apparel retailer, here are some of the things that will help shape the week that lies ahead on Wall Street.

Monday -- Phoning It In

The Mobile World Congress kicks off in Barcelona on Monday. The weeklong event will give smartphone-makers as well as the technology companies and wireless carriers that rely on mobile a chance to show off their latest developments.

More than 85,000 people attended last year's conference, checking out dozens of presentations and hundreds of exhibitors. Some companies like to make big announcements during the annual show, so expect a lot of headlines out of the mobile market.

Tuesday -- Under my Ambarella

Ambarella (AMBA) reports Tuesday. The maker of chips for HD cameras may not be a household name, but its semiconductor solutions can be found in popular camera-based products including GoPro (GPRO) wearables and Dropcam surveillance equipment.

There's plenty of growth to be had in Ambarella as a coattails-rider. With the booming popularity of GoPro wearable cameras and Dropcam monitors, it's easy to see why analysts are holding out for a 48 percent pop in revenue for the quarter and profitability nearly doubling.

Wednesday -- Abercrombie & Flinch

Not every retailer is thriving in this improving economy. Abercrombie & Fitch (ANF) reports Wednesday, and it's been making waves for all of the wrong reasons. Things heated up at the U.S. Supreme Court last week over an employee discrimination case brought against the teen retailer by a Muslim woman who was rejected for a job, claiming that she didn't get the gig because she wore a hijab headscarf to the interview.

Also late last week we saw Morgan Stanley (MS) downgrade the stock, slashing its price target to $18 from $28. Abercrombie stock has already surrendered nearly half of its value since its summertime peak, and the downgrade so close to its earnings report is another ominous sign.

Thursday -- Skull Cap

Skullcandy (SKUL) hopes to make sweet sounds Thursday. The edgy maker of in-ear headphones has been a rough investment for shareholders who bought into the company when it went public at $20 four summers ago. The stock has gone on to shed nearly half of its value, but it has started to bounce back lately.

Analysts see strong double-digit growth in sales and earnings when Skullcandy reports Thursday afternoon.

Friday -- It's Hard to Find the 'Easy' Button

Staples (SPLS) closes out the trading week with fresh financials on Friday morning. It's hard to be an office supply superstore chain these days. Staples has struggled with its European stores, and is facing competitive pressures from online retailers closer to home.

It sees a near-term solution in acquiring its biggest rival, recently announcing plans to snap up Office Depot (ODP) in a deal valued at more than $6 billion. The combination would find Office Depot, OfficeMax, and Staples owned by the same company, and that's not a slam dunk to clear regulatory antitrust hurdles. We should get an update on the situation during Staples' conference call.

Motley Fool contributor Rick Munarriz owns shares of Ambarella. The Motley Fool recommends Ambarella. The Motley Fool owns shares of Ambarella and Staples. Try any of our Foolish newsletter services free for 30 days. Is your portfolio ready for what 2015 has to offer? Check out our free report for one great stock to buy for this year and beyond.

 

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