Shares of several companies experienced significant moves in pre-market trading, reflecting varied earnings reports and forecasts.
DraftKings saw its stock fall by approximately 17% after issuing a disappointing revenue forecast for 2026. Despite posting fourth-quarter earnings of 25 cents per share on revenue of $1.99 billion—surpassing analysts’ predictions of 15 cents per share and $1.98 billion in revenue—the company’s projected revenue for 2023 is between $6.5 billion and $6.9 billion, below the consensus estimate of $7.31 billion.
In contrast, Roku’s shares rose 15% following strong fourth-quarter results, with adjusted EBITDA of $169.4 million and revenue of $1.39 billion, both exceeding analysts’ expectations. The company also provided optimistic guidance for 2026, predicting $635 million in adjusted EBITDA and $5.5 billion in revenue—higher than previous forecasts.
Rivian Automotive’s stock surged by 20%, buoyed by its forecast of vehicle deliveries between 62,000 and 67,000 units for 2026, marking an increase from 2025. The electric vehicle manufacturer reported adjusted losses of 54 cents per share, better than the anticipated 68 cents, alongside revenue that surpassed estimates.
Applied Materials, a semiconductor equipment firm, advanced by 11% after reporting earnings of $2.38 per share on $7.01 billion in revenue, outperforming analyst expectations.
Conversely, Expedia Group’s shares fell over 6% after highlighting potential risks from AI-powered platforms, despite posting better-than-expected earnings and revenue. Steel and aluminum stocks declined following news of potential tariff rollbacks, while Pinterest’s shares plummeted 20% due to disappointing fourth-quarter results and weak forward guidance.
Why this story matters
- The contrasting performance of these companies highlights varying market responses based on earnings transparency and future projections.
Key takeaway
- Companies that exceed earnings expectations are rewarded with stock price increases, while those that fall short face declines.
Opposing viewpoint
- Concerns regarding long-term market stability arise, given the impact of external factors such as tariff changes and emerging technologies.
