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Zillow Shares Plunge Despite Beating Q4 Estimates; Redfin Rises on Partnership News

Zillow Group Inc. ( ZG ) delivered fourth-quarter earnings that exceeded Wall Street expectations. Yet Zillow's stock plummeted over 12% as the company issued a weaker-than-anticipated revenue forecast for the first quarter of 2025. The real estate technology giant reported earnings per share of $0.27, surpassing analyst estimates of $0.22, with revenue reaching $554 million—comfortably above the consensus projection of $538.4 million. Despite these strong numbers, Zillow's outlook for Q1 2025, forecasting revenue between $575 million and $590 million, fell short of the estimated $598.5 million, rattling investor confidence. Adding to investor unease was Zillow’s reported net loss of $52 million for Q4, an improvement from the $73 million loss in the same period last year but still a substantial deficit. The company’s full-year 2024 revenue climbed 15% year-over-year to $2.2 billion, with EBITDA margins expanding by 200 basis points. Zillow’s mortgage business was a standout, w...

DoorDash Stock Surges on Strong Q4 Results and Bullish Outlook

DoorDash ( DASH ) shares surged early Wednesday after the company posted impressive fourth-quarter earnings, highlighted by strong revenue growth and a robust outlook for 2025. The food delivery giant reported a 25% increase in revenue, reaching $2.87 billion, surpassing analysts’ expectations of $2.84 billion. Earnings came in at 33 cents per share, just shy of the anticipated 34 cents. More significantly, DoorDash processed 685 million orders in the quarter, generating a gross order value (GOV) of $21.3 billion—exceeding the projected $20.9 billion. The company also achieved a 56% year-over-year increase in adjusted EBITDA, which stood at $566 million, toward the higher end of its guidance range. Expansion and Market Share Gains Fuel Growth DoorDash continues to expand beyond restaurant delivery, making significant inroads into grocery and retail. These new verticals are growing faster than its core restaurant business, demonstrating the company’s ability to diversify revenue streams...

CVS Stock Surges as Investors Bet on a Turnaround

CVS Health ( CVS ) delivered a much-needed jolt to investors on Wednesday, posting better-than-expected earnings and revenue for the fourth quarter. Shares skyrocketed nearly 15% in morning trading, marking the stock’s largest single-day gain since 2008. The surge comes after a brutal 2024, during which CVS stock tumbled more than 40% amid rising costs and struggles in its health insurance division. The company reported adjusted earnings of $1.19 per share, easily surpassing Wall Street’s consensus estimate of 91 cents. Revenue also came in stronger than expected at $97.7 billion, above analysts' projections of $97.1 billion. The earnings beat and optimistic 2025 guidance have provided investors with renewed confidence that CVS is on the path to stabilization under new CEO David Joyner. Addressing Challenges in the Insurance Segment CVS has been particularly hard-hit by surging medical costs, with its insurance arm, Aetna, facing mounting pressures. The company enrolled the highest...

Upstart Holdings Surges on Strong Earnings and Optimistic Outlook

Upstart Holdings ( UPST ) soared 30% on Wednesday after the artificial intelligence (AI) lending platform delivered fourth-quarter results that easily surpassed Wall Street expectations. The company reported an adjusted profit of $0.26 per share, defying analysts’ predictions of a $0.03 loss. Revenue surged 56% year-over-year to $219 million, well above the $181.9 million forecasted. Key drivers of the strong quarter included a significant increase in transaction revenue—up 68% to $2.11 billion—and a staggering 89% jump in loan originations, reaching 245,663 loans. CEO Dave Girouard credited Upstart’s AI-driven risk assessment models for the company’s ability to expand its loan marketplace despite macroeconomic uncertainties. Guidance Fuels Investor Optimism Upstart’s forward guidance only added to investor enthusiasm. The company expects revenue of $200 million for the first quarter of 2025, outpacing analysts’ estimates of $184.6 million. Even more striking, Upstart forecasts full-ye...

Tesla’s Market Reality Check: Stock Tumbles as Investors Reassess Fundamentals

Tesla Inc. ( TSLA ) has taken a sharp turn downward, shedding over 6% in Tuesday’s trading and extending its recent losing streak. The once high-flying stock, which surged following former President Donald Trump’s election victory, is now facing a hard dose of reality. Investors who bet on Tesla’s political proximity to the White House easing regulatory hurdles for its self-driving ambitions are now turning their focus back to the company’s fundamentals. Tesla remains the most expensive mega-cap tech stock relative to expected earnings, raising concerns about a potential further decline. With the stock breaking below key technical levels, analysts are sounding the alarm. Michael Purves, CEO of Tallbacken Capital Advisors, sees an opportunity in buying put spreads, specifically the $300/$250 spread expiring in May. With implied volatility at the lower end of its range, options traders are positioning for more downside risk. China’s BYD Gains Ground in the EV Race Adding to Tesla’s chall...

Coca-Cola’s Strong Q4 Puts PepsiCo on Notice

Coca-Cola ( KO ) delivered a robust fourth-quarter performance, exceeding Wall Street estimates and solidifying its position ahead of rival PepsiCo ( PEP ). The beverage giant reported revenue of $11.5 billion, surpassing analyst expectations of $10.67 billion. Adjusted earnings per share (EPS) came in at $0.55, beating the forecasted $0.52. The strong results were driven by a 9% increase in price/mix and a 2% rise in unit case volume, marking a return to volume growth after a decline in the previous quarter. CEO James Quincey credited the company’s ability to navigate a volatile global economy, citing its combination of global reach and localized market expertise. Outperforming PepsiCo in Key Markets Coca-Cola’s strong Q4 figures outshone those of its closest competitor. While KO reported a 2% increase in unit case volume, PepsiCo managed just a 1% gain, with North American beverage volumes contracting by 3% for the second consecutive quarter. KO’s pricing strategy played a key role i...

Wall Street's Cold Welcome for Trump 2.0

The second Trump administration has begun on an unexpectedly sluggish note for Wall Street. Optimistic projections of an M&A boom, regulatory rollbacks, and a business-friendly White House have yet to materialize. Instead, January marked the slowest month for U.S. dealmaking in over a decade, with LSEG data showing the lowest number of announced mergers and acquisitions since 2014. The administration’s early moves have introduced uncertainty rather than the anticipated golden era for finance. Trump’s new antitrust regulators made their presence known quickly by blocking a proposed merger between Hewlett Packard ( HPE ) and Juniper Networks ( JNPR ), signaling that large-scale consolidations won’t be given an easy pass. Compounding concerns are unclear tariff policies that have left executives hesitant to pull the trigger on major investments. The result? A cautious approach to dealmaking as businesses wait for clearer guidance. Political Heat and Policy Surprises Wall Street’s wari...