Trending Market News

Pinterest stock plunged 20% after reporting fourth-quarter revenue of $1.32 billion that missed expectations and issuing weak first-quarter guidance of $951-971 million, below the $980 million analyst estimate. Despite the disappointing financial results, the company reached an all-time high of 619 million global monthly active users, exceeding Wall Street projections.

• Fourth-quarter revenue of $1.32 billion fell short of the $1.33 billion expected, with Q1 guidance of $951-971 million trailing analyst estimates of $980 million
• Global monthly active users grew 12% year-over-year to a record 619 million, surpassing the expected 613 million
• Adjusted EBITDA of $541.5 million missed the $550 million target, while the company recently cut less than 15% of its workforce to focus resources on AI-powered product development

Roku forecast annual revenue of $5.50 billion, above Wall Street's estimate of $5.34 billion, driven by a rebound in digital advertising and the shift to ad-based streaming. The company's shares climbed following the announcement. Roku is capitalizing on growing streaming viewership as connected TV devices become primary viewing platforms for households.

• Annual revenue forecast of $5.50 billion exceeds analyst estimates of $5.34 billion
• Platform revenue expected to grow 18% to $4.89 billion in 2026
• Growth driven by strong ad sales as more customers switch to streaming platforms and connected TV devices become primary viewing methods

Airbnb reported fourth-quarter results that exceeded revenue expectations with $2.78 billion (up 12% year-over-year), but missed earnings per share estimates. Despite the revenue beat, shares dropped 3% in extended trading. The company provided optimistic forward guidance, projecting Q1 revenue of $2.59-$2.63 billion versus analyst estimates of $2.53 billion.

• Revenue of $2.78 billion beat the $2.72 billion estimate, marking the 20th time in 21 quarters that Airbnb exceeded Wall Street revenue expectations
• Nights and seats booked reached 121.9 million (up 10% YoY) and gross booking value totaled $20.4 billion (up 16% YoY), both surpassing analyst expectations
• The company expects full-year revenue growth of 'at least low double digits' compared to analyst expectations of 10.2% growth, and recently hired a new tech chief from Meta to lead AI initiatives

Applied Materials, the largest U.S. semiconductor equipment maker, forecast second-quarter revenue and profit above market estimates on Thursday, driven by surging demand for AI processors and a global memory shortage. The company expects Q2 sales of approximately $7.65 billion, significantly higher than the analyst estimate of $7.01 billion, as chipmakers expand production capacity.

• Q2 revenue forecast of about $7.65 billion (plus or minus $500 million) exceeds analyst estimates of $7.01 billion
• Expected Q2 adjusted profit of approximately $2.64 per share
• Growth driven by relentless AI chip demand and memory providers increasing manufacturing capacity amid a worldwide memory shortage

Vertex Pharmaceuticals forecast 2026 revenue of $12.95-$13.1 billion, aligned with analyst estimates, driven by its dominant cystic fibrosis treatments and newer products including gene therapy Casgevy and non-opioid painkiller Journavx. The company reported a 10% rise in Q4 revenue to $3.19 billion, meeting expectations as it diversifies beyond cystic fibrosis into gene therapies and pain management.

• The company expects at least $500 million in 2026 revenue from non-cystic fibrosis products, including Casgevy (which treated 64 patients in 2025 and generated $54 million in Q4) and Journavx (which received over 550,000 prescriptions through year-end 2025)
• Vertex secured commercial coverage for Journavx with all three national pharmacy benefit managers, expected to boost uptake in 2026 following its 2025 approval for acute pain
• The company plans to release interim data in H1 2026 for experimental drug povetacicept for kidney disease, using a priority review voucher to expedite FDA review from ten months to six

Rivian exceeded Q4 revenue expectations with $1.29 billion versus $1.26 billion estimated, but the EV maker warned it will continue incurring significant losses as it ramps up production of its next-generation R2 vehicle. The company projects 2026 vehicle deliveries of 62,000-67,000 units, representing a 47-59% increase year-over-year, while expecting adjusted losses between $1.8 billion and $2.1 billion.

• Full-year 2025 revenue reached $5.34 billion, up 8% from 2024, with gross profit of $144 million achieved largely through Rivian's software joint venture with Volkswagen offsetting $432 million in automotive losses
• Net loss improved to $3.6 billion in 2025 from $4.75 billion in 2024, though Q4 loss of $804 million was impacted by decreased regulatory credit sales following Trump administration rollbacks to emissions standards
• Capital expenditures for 2026 expected between $1.95 billion and $2.05 billion, up from $1.7 billion in 2025, as the company invests in launching the crucial R2 vehicle

Westpac Banking Corp reported a 6% increase in first-quarter underlying net profit to A$1.9 billion ($1.35 billion) for the three months ended December 31, driven by strong growth in customer deposits and loans. The profit growth comes despite continued pressure on net interest margins in Australia's competitive low-interest-rate lending environment.

• Westpac added A$12 billion in customer deposits and A$22 billion in new loans during the quarter, offsetting margin compression
• Core net interest margin declined 3 basis points to 1.79% due to intense competition among Australian lenders for borrowers
• Common equity tier 1 (CET1) ratio fell 23 basis points to 12.3% at year-end, reflecting capital deployment

Eli Lilly has accumulated $1.5 billion in pre-launch inventory of its experimental oral weight-loss drug orforglipron, nearly tripling its stockpile from $550 million previously. The FDA is expected to make an approval decision in April, and the company plans to launch the pill simultaneously in multiple countries if approved.

• The inventory increase from $550 million to $1.5 billion demonstrates Lilly's confidence and preparation for a major multi-country launch of orforglipron
• Competitor Novo Nordisk launched its once-daily weight-loss pill earlier this month, generating over 26,000 prescriptions in the second full week
• Orforglipron received FDA fast-track review status, potentially cutting approval review time to just 1-2 months versus the typical 10-12 months

Mercedes-Benz is recalling 11,895 vehicles in the United States due to high-voltage batteries that can fail internally and create a fire risk whether the vehicle is parked or being driven. The U.S. National Highway Traffic Safety Administration announced the recall on Thursday, instructing owners to take immediate precautions while awaiting repairs.

• Vehicle owners are advised to park outside and limit charging until they can obtain a free battery replacement from Mercedes-Benz
• The fire risk exists both while vehicles are parked and during operation, making this a safety-critical recall requiring immediate action
• The recall affects nearly 12,000 vehicles with defective high-voltage battery systems that can experience internal failures

Comcast-owned Sky's talks to acquire ITV's broadcast channels and streaming platform for $2.18 billion have slowed in recent weeks, according to sources. The deal aims to create a top-three UK streaming competitor to Netflix and Amazon Prime Video. Complications include challenges in separating ITV's broadcast unit from its Studios division and uncertainty around Warner Bros Discovery's potential acquisition affecting the media landscape.

• Negotiations have stalled partly due to time-consuming complications in separating ITV's Media and Entertainment unit from its Studios operation, making it difficult to value the broadcast assets
• Comcast is weighing how potential acquisitions of Warner Bros by Netflix or Paramount Skydance may reshape the competitive landscape before committing to the ITV deal
• The weak UK economic outlook and declining value of traditional broadcast assets are weighing on talks, though Comcast continues investing in the UK market with plans for its first European theme park near London

FedEx outlined a three-year growth plan targeting $98 billion in consolidated revenue by fiscal 2029, powered by digital innovation and European expansion. The company expects third-quarter earnings to exceed Wall Street estimates due to an 'exceptional' holiday season. FedEx is also preparing to spin off its freight business into a separate publicly traded company in June.

• FedEx projects $98 billion in revenue by fiscal 2029 (excluding freight business), representing a 4% compound annual growth rate, with expected operating income of $8 billion and 8% operating margin
• Fiscal 2026 revenue is projected at roughly $93.5 million including freight business, with the freight spinoff scheduled for June as a separate publicly traded entity
• International expansion focuses on achieving 8% operating margin through improvements in Europe, including the announced acquisition of European company InPost at 15.60 euros per share

Palo Alto Networks avoided directly naming China in a report about a global cyberespionage campaign due to fears of retaliation from Beijing, according to sources. The cybersecurity firm instead described hackers as a 'state-aligned group that operates out of Asia' after executives softened language following China's ban of Palo Alto's software last month. The decision highlights risks cybersecurity companies face when attributing state-sponsored hacking, particularly those with global operations.

• A draft report by Palo Alto's Unit 42 originally linked the hacking group 'TGR-STA-1030' to China, but executives ordered the language softened after China banned Palo Alto and about 15 other U.S. and Israeli cybersecurity firms' software on national security grounds
• The hackers successfully breached government and critical infrastructure organizations in 37 countries in what Palo Alto dubbed 'The Shadow Campaigns,' with forensic evidence pointing to China including GMT+8 timezone activity and targeting aligned with Beijing's diplomatic interests
• Palo Alto maintains five offices in China and lists over 1,000 employees there on LinkedIn, illustrating the trade-off companies with global footprints face between exposing foreign espionage and protecting local staff from potential reprisals

The European Union has launched a new antitrust investigation into Google over concerns the company is illegally manipulating the pricing of advertising on its search engine. The probe adds to Google's ongoing regulatory challenges in Europe, where it has faced multiple antitrust cases. This investigation focuses specifically on potential anticompetitive practices in search ad pricing.

• The EU is examining whether Google is rigging the cost of search advertising in violation of competition laws
• This represents another front in Google's long-running antitrust battles with European regulators
• The investigation targets Google's dominant search engine advertising business, a core revenue source for the company

Kraft Heinz CEO Steve Cahillane has paused the company's planned separation into two publicly traded entities to focus on reviving struggling brands like Oscar Mayer and Kraft Mac & Cheese. The decision comes as the company faces declining sales, with net sales dropping 3% in 2024 and 3.5% in 2025, while its stock has fallen nearly 70% since the 2015 merger. Analysts express concern that the pause signals deeper business weakness than previously understood.

• Cahillane is redirecting $600 million earmarked for marketing, sales and R&D toward brand investment, reversing years of cost-cutting that starved major brands of resources
• Major investor Berkshire Hathaway, holding a 27.5% stake, was not receptive to the original separation plan and may divest its position entirely
• The company's U.S. grocery division brands including Oscar Mayer, Maxwell House, and Lunchables require the most attention, with previous attempts to sell Oscar Mayer and Maxwell House unsuccessful

Waymo has begun deploying its sixth-generation Ojai robotaxis to employees in San Francisco and Los Angeles, aiming to extend its U.S. autonomous vehicle lead. The new system uses more cost-effective components and can better navigate harsh weather conditions, which is critical for Waymo's expansion into additional markets. The rollout comes as Waymo operates in six U.S. cities and plans to expand to 10 more domestic markets plus London in 2026.

• The new Ojai robotaxis use base vehicles from Chinese automaker Geely's Zeekr subsidiary, raising concerns from GOP lawmakers, though Waymo says it will not share autonomous driving technology, sensor data, or rider information with the Chinese manufacturer.
• Alphabet's 'Other Bets' segment, which includes Waymo, reported $7.51 billion in losses in 2025, up from $4.44 billion in 2024, though Waymo recently closed a $16 billion funding round valuing the company at $126 billion.
• The sixth-generation system features upgraded lidar and radar, a 17-megapixel imager requiring fewer cameras, and improved algorithms for rain and snow performance, with integrated cleaning systems to maintain visibility in inclement weather.

British American Tobacco's CEO said a potential U.S. import ban on unauthorized disposable vapes could reduce the illegal e-cigarette market by roughly a third, though any impact likely won't materialize until 2027. BAT estimates unregulated devices currently comprise about 70% of U.S. e-cigarette sales, and the company has two active cases at the U.S. International Trade Commission seeking to block imports of unauthorized vapes.

• An ITC judge ruled in BAT's favor in a patent dispute last year and recommended blocking disposable vapes that infringe its patents, with a full ITC determination expected in March followed by a 60-day presidential review
• BAT's CEO warned that long U.S. supply chains and large existing inventories would delay any market impact until early 2027, even if the import block is approved
• The CEO suggested the FDA may test a different regulatory approach to vapes, potentially including flavored products, after years of rejecting most new nicotine product applications

Italian tax police raided Amazon's Milan headquarters on Thursday as part of a tax evasion investigation examining whether the U.S. tech giant operated an undisclosed permanent base in Italy from 2019 to 2024. Authorities also searched the homes of seven Amazon managers and offices of auditing firm KPMG. The probe focuses on whether Amazon should have paid more taxes in Italy due to its local presence.

• The investigation targets Amazon's potential failure to disclose a permanent Italian establishment during a five-year period (2019-2024), which would have triggered higher tax obligations
• Tax police (Guardia di Finanza) conducted searches at multiple locations including Amazon's Milan headquarters, homes of seven company managers, and KPMG's offices
• Neither Amazon nor KPMG provided immediate comment on the investigation

U.S. stock markets digested a stronger-than-expected January jobs report showing 140,000 payroll additions (nearly double the 70,000 forecast) and unemployment falling to 4.3%, prompting traders to scale back Federal Reserve rate cut expectations. Markets now price in only two rate cuts for 2026, with the first not fully expected until July, as the stabilizing labor market allows the Fed to focus on above-target inflation.

• January payrolls of 140,000 nearly doubled expectations of 70,000, with unemployment unexpectedly declining to 4.3% despite rising labor force participation
• Interest rate futures now price only two Fed cuts in 2026 (down from earlier expectations), with the first cut not fully priced until July as labor market stabilization shifts focus to inflation
• Congressional Budget Office projects the 10-year deficit will be $1.4 trillion (6%) higher than January 2025 estimates, with debt-to-GDP ratio expected to exceed 106% by 2030, surpassing the 1946 peak

Restaurant Brands International reported fourth-quarter comparable sales that exceeded analyst expectations, driven by strong performance at Burger King and Tim Hortons. The company's same-store sales grew 3.1%, beating the estimated 2.8% rise, as value-focused menu offerings attracted budget-conscious consumers.

• Burger King introduced value meal deals including '2 for $5' and '3 for $7' offers over the past year to appeal to cost-conscious diners
• Same-store sales growth reached 3.1% in Q4, surpassing analyst estimates of 2.8% according to LSEG data
• The results reflect broader fast-food industry trends where chains emphasizing affordability are seeing resilient traffic while pricier competitors struggle

American Airlines unions are demanding CEO Robert Isom's removal and board accountability after the carrier generated only $352 million in adjusted pretax profit in 2025, far behind Delta's $5 billion and United's $4.6 billion. Flight attendants issued their first-ever no-confidence vote against an American CEO, while pilots requested a formal meeting with the full board, citing persistent operational failures and strategic shortcomings.

• American captured just 4% of combined pretax profits among the big three U.S. carriers in 2025, with some flight attendants receiving as little as $150 in profit-sharing payouts
• A January winter storm exposed operational weaknesses, with American posting the highest cancellation rate and worst on-time performance among major carriers including Southwest, Alaska, United, and Delta
• Flight attendants plan a protest at American's Fort Worth headquarters Thursday, while pilot union leadership seeks direct board engagement after multiple unproductive meetings with CEO Isom's executive team