Editor
Earnings season volatility gripped the markets on Friday as investors grappled with a starkly divided corporate landscape, where even “beating the numbers” wasn’t enough to save some darlings from a sell-off. In a session defined by aggressive swings, the spotlight shifted from what companies did in the final months of last year to what they fear—or hope—might happen in the next twelve.
The DraftKings Reality Check
The house doesn’t always win. DraftKings learned that the hard way today, watching its shares crater 17% despite technically exceeding fourth-quarter expectations. The sportsbook operator posted earnings of 25 cents per share on nearly $2 billion in revenue, but the celebration was cut short by a lackluster 2026 roadmap.
Management’s revenue forecast for the year—pegged between $6.5 billion and $6.9 billion—fell embarrassingly short of the $7.31 billion analysts had penciled in.
“The market is moving past the ‘growth at any cost’ phase for online gaming,” says Marcus Thorne, a senior equity analyst at Capital Vista Research. “DraftKings proved they can make money, but they failed to prove they can maintain the breakneck pace the Street demanded. It’s a classic case of the goalposts being moved mid-game.”
Streaming and EVs Find a Second Wind
While the gamblers were licking their wounds, Roku investors were popping champagne. The streaming pioneer surged 15% after a comprehensive “beat and raise” performance. Not only did Roku outperform on the top and bottom lines for Q4, but its 2026 guidance—forecasting $5.5 billion in revenue—sent a clear signal that the ad market is thawing. Rosenblatt analysts were quick to react, bumping their price target to $118.
Across the floor, Rivian Automotive provided a rare spark of optimism for the EV sector. The truck maker jumped 20% on the back of an ambitious delivery target for 2026. If Rivian hits its goal of 67,000 units, it would represent a massive 59% jump over last year.
Tariff Fears and the “Trump Effect” on Industrials
It wasn’t all about balance sheets; geopolitical jitters played a heavy hand in today’s earnings season volatility. Reports from the Financial Times suggesting President Trump plans to roll back steel and aluminum tariffs sent domestic metal producers into a tailspin.
The levies, which reached as high as 50% last summer, acted as a protective moat for American firms. With that moat potentially being drained, Century Aluminum plunged 10%, while Steel Dynamics and Alcoa saw significant haircuts.
“It’s a double-edged sword,” notes Sarah Jenkins of Global Trade Partners. “Lower tariffs might help manufacturers downstream, but for the guys actually smelting the metal, the prospect of a flood of cheap imports is a nightmare scenario.”
Tech’s Mixed Bag: Applied Materials vs. Pinterest
The semiconductor story remains the bedrock of this bull market. Applied Materials leaped 11% after a “blowout” quarter that saw earnings of $2.38 per share, comfortably ahead of estimates. It seems the appetite for chip-making equipment remains insatiable.
Pinterest, however, found itself on the wrong side of the algorithm. The social platform plummeted 20% in after-hours trading following a narrow miss on both earnings and revenue. More concerning for investors was the weak guidance for the first quarter, suggesting that the “pinnable” lifestyle might be losing some of its commercial luster.
Travel, Coffee, and Crypto
Expedia Group (-6%): In a curious twist, Expedia beat its numbers but saw its stock slide after management flagged “emerging AI-powered platforms” as a structural risk. It’s a candid admission that ChatGPT might be the travel agent of the future.
Dutch Bros (+14%): The drive-thru coffee chain proved that caffeine is recession-proof, crushing earnings estimates by 7 cents a share.
Coinbase (+5%): Despite missing Q4 revenue targets, the crypto giant rode a massive 156% surge in annual trading volume to a green finish.
As the dust settles on this round of reports, the message from the trading floor is clear: the market is no longer rewarding mere survival. In a climate of high interest rates and shifting trade policies, investors are demanding perfection in guidance—and punishing anything less.
