NASDAQ: Weekly Earnings Summary Feb 21
The NASDAQ-100 index rose +1.26% this week. Earnings season is separating the winners from the losers based on their future outlook. While hardware and AI companies (ADI) are showing record growth, the software sector (PANW, BKNG) is under pressure due to weak forecasts. The market is rewarding growth and punishing uncertainty.
What happened: The company's operating profit more than doubled (+102.9%) and sales revenue grew by 30.4%, exceeding analyst expectations. Why: Growth was driven by exceptionally strong demand in the industrial and data center sectors, supported by the ongoing artificial intelligence boom and the need for new hardware. Result: The strong results and forecast led the stock to a +5.3% gain for the week, reaching a new record high.
What happened: Sales revenue grew strongly by 37.7%, but operating profit growth slowed to 25.6% (previously 141%). However, net profit still grew by over 50%. Why: The company is investing aggressively in new segments, which increases costs, but analysts see long-term potential in this strategy. Result: Investors looked past the short-term costs, and the stock rose significantly during the week.
What happened: Operating profit grew by 17.4% and booking volume by 27.2%, indicating a strong quarter. Why: Despite the good numbers, management issued a cautious forecast about cooling travel demand, which overshadowed the quarterly results. Result: The weak outlook and uncertainty regarding the US market led the stock to a 1.5% decline for the week.
What happened: Operating profit grew by an impressive 64.7%, exceeding expectations, and sales revenue increased by nearly 15%. Why: Despite this, the company unexpectedly cut its profit forecast, citing increased costs and discounts offered to retain customers. Result: The market reacted painfully to the forecast cut, sending the stock down 10.9% for the week.
What happened: Operating profit turned to a 6.5% decline and sales revenue decreased by 3.3%, falling short of expectations. Why: Global sales volumes fell by 9.3%, which could not be offset even by an increase in the average selling price in the US market. This suggests cooling demand. Result: The stock fell 2.7% following the results, reaching a yearly low.
What happened: Sales revenue grew by 5.9%, but operating profit fell by 0.9%, which was a disappointment. Why: Rapid cost growth (+10.9%) eroded the positive impact of revenue growth, putting pressure on margins. Result: The stock remained stable (+0.7%) as management announced a massive $2.5 billion share buyback program, which provided support for the price.
What happened: Sales revenue grew by 6.2%, but operating profit growth slowed sharply to 1.4% (previously 21.5%). Why: Large investments in research and development (+18.5%) pressured short-term profitability but are laying the groundwork for future growth. Result: The stock fell 1.1% for the week, but a record order backlog and AI-related optimism softened the decline.
Conclusion
This week's results confirm that good numbers alone are no longer enough—investors demand confidence in the future. Artificial intelligence and infrastructure companies remain in favor, while firms grappling with rising costs or cooling demand are under greater pressure. In the coming weeks, it will be worth watching whether this trend extends to other sectors.
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