April 2023 is in full swing and will be a major month for several TSX stocks. With the Organization of Petroleum Exporting Countries (OPEC) announcement about a cut in global oil supply, energy stocks are already rallying. Besides the change in the energy industry, several earnings releases are coming up that can determine how the stock market will shape up in the coming weeks.
The earnings releases coming up can play a significant role in whether things change for good or worse for the stock market. Today, I will discuss two TSX stocks that might see plenty of price movement on the stock market due to events this month.
Rogers Communication (TSX:RCI.B) is gearing up for an earnings release scheduled for April 19, and the report can result in significant price movements for the telecommunications giant. The $32.58 billion market capitalization stock might not be the biggest player in the Canadian telecom space. However, it is positioning itself to become a contender.
The earnings release will be its first since the company’s merger with Shaw Communications. The merger between the two is designed to accelerate the infrastructure development and deployment of 5G services in Western Canada. The move also makes the combined company the second-largest telecom provider in Canada by revenue after BCE.
Besides acquiring Shaw Communications, Rogers will invest around $3 billion to improve its broadband services infrastructure. Between that and a $2.5 billion investment to accelerate its 5G services development and rollout, the telecom giant is looking at a more promising future than ever before. The upcoming earnings release will paint a clearer picture in the coming weeks.
Shopify (TSX:SHOP) is the battered and bruised tech stock that was once the largest TSX stock by market capitalization. As of this writing, it boasts a $77.12 billion market capitalization, trading for $61.18 per share. It is a far cry from its November 2021 levels, down by over 70% from the all-time high it achieved before the tech sector meltdown. So far, 2023 has not been too bad for the tech stock.
Up by 25.39% year to date, Shopify stock is enjoying the effects of a broader wave of optimism toward tech stocks.
The tech company’s last earnings release showed a 26% revenue growth. While it can be seen as a positive figure, Shopify stock reported an 86% year-over-year revenue growth in 2020, making for a disappointing figure. While its next earnings release is in May, April 2023 can be a big month for Shopify. Major tech companies like Amazon will be releasing their earnings later this month.
The numbers reported by other major tech players will likely influence the performance of Shopify stock. If the reports are strong, they can lead to positive price movement for Shopify and vice versa.
The tech sector is in a cyclical downturn, but tech companies can report positive price movements, despite reporting earnings declines. It is impossible to predict how things will proceed for Shopify stock, but earnings releases across the border may result in significant price movements for Shopify stock.
Of the two, Rogers Communication stock appears to be in a better position to enjoy positive price movements after its earnings release. The recent merger has improved the company’s financials and made it a serious contender in the Canadian telecom space.
Shopify stock remains as unpredictable as ever, but developments in the U.S. tech sector can dictate how things proceed for the Canadian tech darling stock. It might be worth keeping on your radar right now.