Nasdaq: Weekly Earnings Summary (Feb 14)
The Nasdaq-100 index fell -2.12% this week, reflecting general market caution. The earnings season is revealing a clear pattern: investors are overlooking short-term profit declines if a company presents a strong future vision. However, those whose forecasts fall short of high expectations are being punished mercilessly.
What happened: The company's operating profit decline halted (-0.4%), and revenue grew robustly by 29.2% to $953 million. This marks a turning point compared to previous quarters.
Why: Revenue growth almost entirely covered the increase in costs. The company's strong forecast and high demand for AI solutions restored investor confidence, further supported by a successful investor day where a detailed growth plan was presented.
Weekly result: The stock jumped +14.0% for the week, making it one of the biggest winners.
What happened: Operating profit fell by 15.8%, but this was better than expected, and the downward trend is slowing. Revenue remained stable.
Why: The result was impacted by a one-time legal expense, but demand for AI chip manufacturing equipment is explosive. The company provided a very strong forecast for the next quarter, confirming the continuation of the AI boom.
Weekly result: The stock rose +10.9% and reached a new record high.
What happened: Revenue grew by 11.3%, but operating profit fell by 18.5% due to increased costs. Profitability remained under pressure.
Why: Despite the profit decline, the company managed to grow its customer base. However, investor focus shifted to capital returns: a dividend and a share buyback plan were announced, funded by a new bond issuance.
Weekly result: The stock rallied +9.3% as shareholder returns outweighed the quarterly profit decline.
What happened: Operating profit growth slowed to 7.9%, hampered by increased maintenance costs, although new tariffs supported revenues.
Why: Investors ignored the lackluster quarterly numbers and focused entirely on the new $41.3 billion investment plan. This promises long-term growth, supported by the increasing energy demand from data centers.
Weekly result: The stock rose +9.2% and reached a 52-week high.
What happened: Operating profit plummeted by 50.2% due to a decline in sales revenue and significant restructuring costs.
Why: Demand from the automotive industry is weak, but the company is actively optimizing costs. The market is looking past the one-off expenses and betting on the imminent recovery of the core business and the share buyback program.
Weekly result: The stock rose +8.6%, remaining near its peak despite general selling pressure in the sector.
What happened: Operating profit growth slowed to 3.3%, lagging behind competitors. The result was impacted by a one-time cost related to the termination of a license agreement.
Why: Despite a weak quarter, the franchise business is growing steadily. Investors focused on the company's optimistic 2026 forecast and international demand, ignoring signs of a cooling US market.
Weekly result: The stock rose +7.5% and reached a new record high.
What happened: Operating profit fell by 37.4% due to aggressive investments in marketing and product development.
Why: The company has chosen a strategy of prioritizing growth over profitability. The market reacted positively, as the revenue forecast is strong and travel demand remains high, promising a larger market share in the future.
Weekly result: The stock rose +5.0% as investors currently favor revenue growth.
What happened: Operating profit grew by 17.5%, surpassing the previous quarter's pace. Revenue increased by 9.5%.
Why: The growth driver was the successful launch of the new cystic fibrosis drug, ALYFTRAK. The company is also expanding into other areas, reducing its dependence on a single product group, which mitigates long-term risks.
Weekly result: The stock rose +3.8% on the back of a strong sales forecast.
What happened: Operating profit fell by 19.1% due to a large intangible asset impairment, although revenue grew by 4.7%.
Why: The core business is strong: sales of HIV drugs grew, and the company is making progress in oncology, receiving new approvals for cancer treatments. This offsets the decline in COVID-19 drug sales and provides confidence for the future.
Weekly result: The stock rose +1.9% as investors appreciate the strategic moves.
What happened: Operating profit grew by an impressive 71.0% thanks to new customers and an expanded distributor network.
Why: Despite the strong quarter, investors were initially spooked by a cautious future forecast. Sentiment later improved as the newly launched G7 device is proving successful and profitability is improving rapidly.
Weekly result: The stock recovered from its initial drop and ended the week up +0.9%.
What happened: Operating profit more than doubled (+103.0%) and revenue grew by 65.9%, demonstrating excellent efficiency.
Why: The results were strong, but the stock had already run up significantly. Investors fear competition from Meta and Google and the impact of AI on the advertising business, which led to profit-taking.
Weekly result: The stock fell -7.3%, despite beating analyst expectations.
What happened: Operating profit grew by 21.5% thanks to strong sales of networking equipment, but the growth rate is slowing.
Why: The company raised its full-year forecast but warned of lower profit margins due to the rising cost of AI components. This overshadowed the good sales results and sparked fears of declining profitability.
Weekly result: The stock dropped -9.7%.
Conclusion
This week's results show that investors are willing to reward growth and a future vision even at the expense of short-term profitability (Airbnb, Datadog). At the same time, expectations have been set extremely high—even triple-digit profit growth may not save a stock from falling if risks are seen on the horizon (AppLovin). RYTM recommends monitoring how companies can meet these high expectations with actual cash flow.
RYTM content is for informational purposes only, not financial advice or recommendations. You are solely responsible for your investment decisions. Always consult a professional.