S&P 500: Weekly Earnings Recap (Feb 14)
The S&P 500 index fell -1.85% this week, reflecting market volatility. Earnings season is highlighting a clear trend: investors are rewarding a forward-looking vision (especially in AI and data centers) even when current numbers are weak, but are mercilessly punishing cautious forecasts.
What happened: Hasbro made a powerful comeback – operating profit jumped nearly 400% year-over-year, and revenue grew by 31%. The success was driven by phenomenal sales of "Magic: The Gathering" games and growth in its digital business. Why: Investors cheered the news, and the stock rose +9.2% for the week. The company also announced a new strategic partnership to develop advertising sales, which added to the confidence.
What happened: Data center giant Equinix is riding the artificial intelligence wave. Operating profit quadrupled (+310%), driven by explosive demand for AI infrastructure. Why: The company also provided a stronger-than-expected forecast for 2026, sending the stock to a new high (+13.4%). This confirms to investors that the growth from the AI boom is real and sustainable.
What happened: Generac's results were mixed: the company swung to a loss and revenue decreased by 12% due to weak generator sales. Why: Yet, the stock rallied +22.3% for the week. The reason is an exceptionally strong future outlook – investors believe the growing energy needs of data centers will breathe new life into the company, looking past the current weakness.
What happened: Paper producer Smurfit Westrock's operating profit fell 3% due to weather and merger costs, but the stock still surged +16.4%. Why: The market is focusing on the future synergies and cost savings from the merger with WestRock. Investors see the current costs as a temporary hurdle on the path to greater efficiency.
What happened: Iron Mountain proved it is successfully transforming from a paper storage company into a data center operator. Operating profit grew 18%, and the stock rose +14.1% to a new record high. Why: Growth is driven by data centers and digital solutions, which are in high demand in the AI era. The company forecasts continued rapid growth for this business segment.
What happened: Motorola Solutions showed strength – operating profit grew 16% and its order backlog is at a record high. Demand for security and communication solutions remains strong. Why: The stock reacted with an +8.4% gain. Analysts raised their price targets, praising the company's ability to grow both revenue and profitability in an uncertain environment.
What happened: Travel giant Expedia's operating profit nearly doubled (+94%) thanks to success in its B2B business and cost-cutting. Despite this, the stock plunged -10.4%. Why: Investors were spooked by the company's cautious 2026 forecast, which pointed to an uncertain economic environment. The market punished future uncertainty despite a strong present.
What happened: Robinhood's momentum is fading. Profit growth slowed sharply and crypto revenue fell 38%, leading to a -7.5% drop in the stock. Why: The results revealed the company's heavy reliance on the volatile crypto market. Investors are concerned about whether the company can sustain growth without the support of a crypto boom, and this uncertainty is pressuring the stock price.
What happened: Energy transportation company Williams Companies flexed its muscles – operating profit grew 32% thanks to new gas projects. Why: The stock rose +7.8% to a new record high. The results confirm the significant role of natural gas, and analysts are optimistic about the company's prospects, raising their price targets after the earnings release.
What happened: Medical technology firm Zimmer Biomet's profit fell due to one-off expenses, but sales revenue grew strongly (+11%). Why: The stock rose +7.6% as investors approved of the plan to revamp its U.S. sales network. The market views the high costs as a necessary investment for future growth, not a sign of weakness.
What happened: Senior housing owner Welltower grew its revenue by 41%, but large expansion costs ate into profits. Nevertheless, the stock rose +6.9%, reaching a new high. Why: Investors like the company's aggressive growth strategy – new multi-billion dollar deals were announced, promising even greater cash flow in the future.
What happened: Pest control firm Rollins disappointed. Growth slowed to 6% and costs grew faster than expected, leading to an -8.6% drop in the stock. Why: Investors, accustomed to the company's stable and high profitability, did not forgive the margin compression caused by integration costs.
Conclusion
Earnings season confirms that the market is forward-looking. Companies that can credibly link themselves to the growth of AI and data centers (Equinix, Generac, Iron Mountain) are enjoying investor favor, even with weaker current numbers. Meanwhile, those with an uncertain future outlook (Expedia, Robinhood) are being severely punished. RYTM will be keeping an eye on whether these trends continue.
RYTM content is for informational purposes only, not financial advice or recommendations. You are solely responsible for your investment decisions. Always consult a professional.