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Get Real: Key Earnings, Marijuana in Canada, and Merger News

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In this morning’s Get Real market newsletter, we saw that McDonald’s, AT&T, and Tesla have earnings releases today. Also, marijuana and the T-Mobile-Sprint merger continue to struggle.

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Must-knows

Struggle in the Canadian marijuana market continues

Recently, the increase in legal cannabis prices widened the gap between legal and illegal marijuana prices. Due to the price difference, illegal cannabis sales continue to thrive. Will 2020 be a good year for cannabis in Canada?

Another hurdle for the T-Mobile and Sprint merger

T-Mobile (NYSE:TMUS) and Sprint’s (NYSE:S) proposed $26 billion pending merger deal faces another hurdle—this time from the California Public Utilities Commission. The commission’s review could delay or even derail the pending merger. Notably, the commission has until July to vote but might extend the deadline.

Facebook stock falls amid WhatsApp controversy

Facebook (NASDAQ:FB) stock fell 0.70% on January 23—its second-worst day of trading so far in 2020. The stock fell after reports that WhatsApp was used to hack Amazon CEO Jeff Bezos’s phone. Facebook insists that WhatsApp is secure, but there have been issues with security and data hacking in the past.

What to watch for

AT&T: Should you wait for a correction to buy the stock?

AT&T is scheduled to release its fourth-quarter results before the markets open today. Analysts expect the company to report revenues of $46.95 billion, which implies a fall of 2.2% from $47.99 billion in the fourth quarter of 2018. AT&T looks overvalued based on its estimated five-year PE-to-growth ratio of 2.64x.

McDonald’s to report Q4 earnings this morning

McDonald’s (NYSE:MCD) will report its fourth-quarter earnings today before the market opens. While analysts expect the company’s revenue to rise on a YoY basis, they expect the EPS to fall marginally. The company continues to focus on digital advancements to drive its growth.

Is Tesla a “sell” before its earnings?

Tesla (NASDAQ:TSLA) is scheduled to report its fourth-quarter earnings on Wednesday. Although the stock has tripled from its 2019 lows, many analysts think that investors should be cautious. Notably, a section of the market is concerned about Tesla’s valuation.

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