| | | A farming giant’s stock is tumbling on weak tractor sales, an EV manufacturer is skyrocketing by 140% on explosive revenue growth, and a credit ratings firm is climbing on strong earnings and 2025 guidance. Read on to find out what’s moving the markets today. | |
|
| | | | | What to Watch | Earnings: | Applied Materials, Inc. [AMAT]: Aftermarket Palo Alto Networks, Inc. [PANW]: Aftermarket Airbnb, Inc. [ABNB]: Aftermarket
Motorola Solutions, Inc. [MSI]: Aftermarket
Republic Services, Inc. [RSG]: Aftermarket | Economic Reports: | Initial Jobless Claims [Feb. 8]: 8:30 a.m. Producer Price Index [Jan]: 8:30 a.m. Core PPI [Jan]: 8:30 a.m. |
|
| | Farming Equipment | Deere Shares Slump on 35% Revenue Drop as Farmers Cut Equipment Purchases | | Deere & Co. [DE] reaffirmed its 2025 profit outlook despite ongoing challenges in the agriculture sector, with declining tractor sales weighing on revenue. | The company expects net income to remain between $5 billion and $5.5 billion, a forecast unchanged from its initial projection in November. | Shares of the farm machinery giant are down 5.6% in pre-market trading after posting first-quarter net income of $869 million, slightly above analysts' expectations of $848.7 million. | However, revenue is down 35% year-over-year at $6.81 billion, missing Wall Street estimates of $7.7 billion. | The drop in sales is attributed to weak farm incomes, high borrowing costs, and more farmers opting to rent equipment instead of purchasing. | In North America, Deere expects sales to decline by about 30% this year as lower grain and oilseed prices continue to squeeze farmers’ profits. | U.S. farm income is projected to rise for the first time in three years in 2025, but much of the increase is tied to government subsidies, according to the USDA. | CEO John May emphasized the company’s efforts to manage inventory and adapt to shifting market conditions. | However, uncertainty remains due to potential tariffs imposed by the U.S. on imports from Canada, Mexico, and China, which could further impact the agriculture and manufacturing sectors. | Despite the challenges, Deere’s production costs have decreased, helping the company report earnings of $3.19 per share, slightly above the expected $3.11. |
|
| | Credit Ratings Agency | Moody’s Q4 Revenue Reaches $7.1 Billion, Driven by Ratings and Analytics Growth | | Moody’s Corporation [MCO] posted strong fourth-quarter and full-year 2024 results, with revenue surging 20% year-over-year to $7.1 billion. | The credit rating and financial intelligence firm attributes its growth to solid performance across its key divisions, with Moody’s Investors Service revenue climbing 33% and Moody’s Analytics revenue rising 8%. | The company credits its success to strategic investments in its platform, data capabilities, and product innovation. | Looking ahead, Moody’s projects high single-digit revenue growth in 2025, with adjusted diluted earnings per share expected to grow in the low-to-mid teens, reflecting strong demand for its services. | Moody’s operates primarily through two segments: Moody’s Investors Service, which provides credit ratings and research on debt instruments, and Moody’s Analytics, which offers financial intelligence tools to businesses and institutions. | The firm serves a broad range of clients, including corporations, financial institutions, and government entities worldwide. | Shares of Moody’s have gained 6.89% year-to-date, with the company maintaining a market capitalization of approximately $91.59 billion. Its stock is up 1.9% in premarket trade. |
|
| | | | Energy | Duke Energy Surpasses Q4 Earnings Forecast, But Falls Short on Revenue | | | Source: Duke Energy, Public domain, via Wikimedia Commons |
| Duke Energy Corp. [DUK] reported fourth-quarter earnings of $1.21 billion, with adjusted earnings per share (EPS) reaching $1.66, surpassing analysts' expectations of $1.61 per share. | Despite beating Wall Street profit forecasts, the North Carolina-based electric utility’s revenue of $7.36 billion for the quarter is below the $7.72 billion consensus expectation from analysts. | For the full year, Duke Energy recorded $4.52 billion in profit, or $5.71 per share, with total revenue reaching $30.36 billion. | Despite the revenue shortfall, the company remains optimistic about its future performance. | Duke Energy has set its full-year earnings guidance for 2025 between $6.17 and $6.42 per share, signaling confidence in continued growth. | As one of the largest electric utilities in the United States, Duke Energy serves millions of customers across several states. | The company continues to focus on expanding renewable energy investments while maintaining reliability and affordability for its consumers. |
|
| | Movers and Shakers | | Phoenix Motor Inc. [PEV] - Last Close: $0.25 | Phoenix Motor Inc. is an electric vehicle (EV) manufacturer specializing in heavy-duty transit buses and medium-duty commercial EVs. | Its shares are surging 140%+ premarket after reporting explosive Q3 revenue growth of 1,557% year-over-year, reaching $4.77 million compared to just $0.18 million in the previous year. | My Take: While the massive revenue growth is impressive, profitability remains a challenge. With a net loss last quarter and a stock that’s down 78% year-on-year, it might be wise to wait and watch PEV for now. |
|
|
|
| Applovin Corporation [APP] - Last Close: $380.32 | AppLovin is a marketing software company specializing in AI-driven advertising solutions for mobile apps. Its shares are soaring 30% in early trade today after the company crushed Q4 estimates and issued strong Q1 guidance. | Q4 revenue hit $1.37 billion, exceeding expectations of $1.26 billion, while EPS of $1.73 smashed estimates of $1.24. The company’s advertising revenue surged 73%, fueling bullish sentiment. | My Take: AppLovin’s pivot to a pure-play AI-driven ad tech business is paying off in a big way, with explosive revenue growth and record profitability. This is definitely a stock you need to keep your eye on. |
|
|
|
| Dutch Bros Inc. [BROS] - Last Close: $64.71 | Dutch Bros is a fast-growing drive-thru coffee chain known for its unique customer experience and strong loyalty program. | Its shares are soaring in premarket trading today after reporting 34.9% year-over-year revenue growth, reaching $342.8 million and beating Wall Street’s estimate of $318.8 million. Adjusted EPS of $0.07 also topped expectations of $0.02. | My Take: Dutch Bros’ explosive expansion and customer loyalty strategy are paying off, positioning it as a major competitor in the coffee industry. Keep this stock on your radar for sure. |
|
|
|
| | | | | | That’s all for today. Thank you for reading. If you have any feedback, please reply to this email. | Best Regards, | — Adam Garcia Elite Trade Club |
|
| | | | | Click here to get our daily newsletter straight to your cell for free. | P.S. Just like this newsletter, it's 100% free*, and you can stop at any time by replying STOP. |
| |
|
|
|