Earnings Season Highlights

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A collection of noteworthy post-earnings reactions
Published on Feb 27, 2025 at 1:16 PM
  • Best and Worst Stocks

It's no secret that Boeing Co (NYSE:BA) has struggled over the past year due to incidents with its commercial and defense units, as well as a workers' strike. While the stock saw a brief rally after the company's most recent quarterly report, investors should not bet on a recovery just yet, as it appeared on a list of 25 worst S&P 500 Index (SPX) names to own in March.

According Schaeffer’s Senior Quantitative Analyst Rocky White, BA averaged a 5% loss in March over the last decade, settling higher only three times during that period. The stock was last seen up 1.3% to trade at $175.27, indicating a drop of similar magnitude would place it closer to the $166 level. 

Worst of March

Boeing stock carries a 15.2% year-over-year deficit, and has struggled to close above the $188 level despite several attempts since January. The security is today pacing for its fifth-straight close below the 20-day moving average, a trendline that has alternated between support and resistance for the past 12 months.

BA 20 Day

Options bulls aren't deterred by Boeing's recent woes, however. This is per BA's 50-day call/put volume ratio of 2.14 over at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 98% of annual readings. An unwinding of this optimism could fuel additional headwinds.

Meanwhile, short sellers are firmly in control, despite short interest falling 16.6% in the last two reporting periods. The 19.18 million shares sold short now make up a massive 214.7% of the stock's available float.
Published on Feb 27, 2025 at 1:04 PM
  • Technical Analysis

The last time we analyzed Arista Networks Inc (NYSE:ANET), the computer networking stock had just pulled back to its historically bullish 200-day moving average. While ANET remains primed to bounce off this key trendline, seasonality could provide an additional boost in March.

According to Schaeffer's Senior Quantitative Analyst Rocky White, Arista Networks stock is one of the best-performing S&P 500 Index (SPX) stocks in March and is the only telecommunications stock on the list. Historical data shows that ANET has finished the month higher in eight of the past 10 years, averaging a 6.2% return.

Best of March February 272025

The combination of this flashing bull signal and ANET’s historically strong March performance sets the stage for the stock to potentially climb more than 20% over the next 30 days -- should all factors align perfectly. Last seen down 3% at $93.55, a move of this magnitude would push the equity above $112.

The stock could use the boost, too. ANET remains down 16% in 2025, shedding 19.1% since the start of February. The shares are still far from their Jan. 24 all-time high of $133.57, leaving room for a potential rebound if momentum shifts in the bulls' favor.

ANET Chart February 272025

Published on Feb 27, 2025 at 11:55 AM
  • Midday Market Check

Stocks are seeing plenty of volatility today. Mirroring Nvidia's (NVDA) post-earnings reversal, the Nasdaq Composite Index (IXIC) pulled back sharply from its premarket lead, down triple digits midday. The Dow Jones Industrial Average (DJI), on the other hand, is sporting a 429-point gain, while the S&P 500 Index (SPX) sits modestly higher. 

Global trade remains in focus, after President Trump announced 25% tariffs on Mexico and Canada going into effect next week, along with an additional 10% tariff on China. The U.S. dollar moved higher after the news, while the 10-year Treasury yield rebounds from recent lows. Elsewhere, jobless claims jumped higher than expected, while gross domestic product (GDP) showed showed the U.S. economy growing 2.3% in the fourth quarter. 

Continue reading for more on today's market, including: 

  • Analysts chime in on Salesforce stock after earnings. 
  • Why this mining stock was upgraded. 
  • Plus, options bulls eye EBAY; and two stocks moving big post-earnings moves. 

MMC February27

eBay Inc (NASDAQ:EBAY) is down 9% at $62.92, brushing off upbeat fourth-quarter results on a disappointing current-quarter outlook. Options traders are chiming in, with 14,000 calls and 18,000 puts exchanged so far, which is already 2.4 times EBAY's average daily options volume. The weekly 2/28 64-strike put is the most popular contract, followed by the March 65 call. Falling from last session's three-year highs, the e-commerce giant is up 32.1% year over year. 

ebay feb27

Insurance stock Root Inc (NASDAQ:ROOT) was last seen up 27.6% at $126.00 after the company's upbeat fourth-quarter results, which included earnings of $1.62 per share that smashed analyst estimates of 44 cents per share. The firm marked its first full year of net income profitability in 2024 as well. Climbing back up toward its mid-February three-year highs, ROOT is up 78.9% since the start of the year, and 363% in the past 12 months. 

The New York Stock Exchange's (NYSE) Teleflex Inc (NYSE:TFX) is headed for its worst day ever, down 22.1% at $138.33 at last glance, after a disappointing full-year profit forecast. The medical equipment company also announced the retirement of CFO Thomas Powell, and that it was splitting into two publicly traded companies. Brushing off better-than-expected fourth-quarter results, TFX is trading at eight--year lows. 

Published on Feb 27, 2025 at 10:29 AM
  • Buzz Stocks

Software giant Salesforce Inc (NYSE:CRM) is down 2.9% at $298.34 at last check, following mixed fourth-quarter results and a disappointing fiscal 2026 revenue forecast. Though revenue of $2.78 per share beat estimates of $2.61, revenue of $9.99 billion came in below expectations. No fewer than 13 analysts slashed their price targets on CRM after the event, though J.P. Morgan Securities noted the pullback was a potential buying opportunity. 

It's worth noting that CRM's 14-day relative strength index (RSI) of 19.3 sits firmly in "oversold" territory, which helps bulls' "buy the dip" case. On the charts, today's negative price action has the cloud stock dropping below the $300 level, a key level of both support and pressure over the past year.

At the very end of January, the stock neared its Dec. 4 record high of $369, but February's tumble has it well removed from those levels. Year over year, the equity is dipping into negative territory as it adds to its 11.6% year-to-date deficit. 

Over in the options pits, CRM has seen 40,000 calls and 36,000 puts exchanged straight out of the gate -- four times the amount typically seen at this point. The May 250 put is the most popular contract, where new positions are being bought to open. 

 

 

Published on Feb 27, 2025 at 10:21 AM
  • Buzz Stocks

The shares of Nvidia Corp (NASDAQ:NVDA) are down 4% to trade at $126.09 at last check, erasing their premarket lead. The chipmaker earlier reported better-than-expected earnings and revenue for the fourth quarter, and provided a strong current-quarter outlook despite growing competition.

The strong report initially boosted semiconductor peer Micron Technology (MU), but it was also last seen trading lower. Meanwhile, Intel (INTC) is still enjoying tailwinds as concerns surrounding artificial intelligence (AI) demand and Chinese competiton from DeepSeek ease.

The options pits are already chiming in, with 882,000 calls and 628,000 puts exchanged so far today, which is double the volume typically seen at this point. Most popular is the weekly 2/28 140-strike call, where new positions are being opened.

Options traders have been much more bullish than usual in the last few weeks. This is per NVDA's 50-day call/put volume ratio of 2.41 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which stands higher than 86% of annual readings.

NVDA still sports a healthy 66.7% year-over-year lead, but is slipping below its 200-day moving average. The stock is also further distancing itself from a Jan. 7 all-time high of $153.13.

Published on Feb 27, 2025 at 9:04 AM
Updated on Feb 27, 2025 at 9:07 AM
  • Opening View
 
Published on Feb 27, 2025 at 8:50 AM
  • Analyst Update

Shares of Freeport-McMoRan Inc (NYSE:FCX) are climbing, up 2.2% to $38.80 in premarket trading, following an upgrade from Jefferies. The firm boosted its rating from "hold" to "buy" and raised its price target to $48 from $40, citing improving free cash flow trends and cost reductions as catalysts for future growth for the copper producer.

There could be even more room for upgrades, as 10 of the 18 analysts covering FCX still rate it a lukewarm "hold." Meanwhile, options traders appear notably bullish, with Schaeffer's put/call open interest ratio (SOIR) of 0.4 sitting at its lowest percentile over the past 12 months -- a sign of strong short-term call-buying activity.

On the technical side, Freeport-McMoRan stock is set to open above its 60-day moving average, a key long-term resistance level, as it bounces back from its Feb. 3 low of $34.89, the stock's weakest level since November 2023. FCX remains just below breakeven on both a year-to-date and year-over-year basis.

Published on Feb 26, 2025 at 4:27 PM
  • Market Recap
 
Published on Feb 26, 2025 at 2:47 PM
  • Technical Analysis

Though the market will be focused on the highly-anticipated Nvidia (NVDA) report, cloud name Snowflake Inc (NYSE:SNOW) will also announce its latest quarterly earnings after the close today. SNOW is climbing ahead of the event, up 1.7% at $167.15 at last glance, and looking to snap a five-day losing streak. The equity bounced off a familiar line of support at the $160 level, the site of its November post-earnings bull gap of 32.7%, and remains 8.1% higher in 2025. 

SNOW Feb26

Despite last quarter's surge, SNOW has a fairly dismal history of post-earnings moves. Over the last two years, the stock has only closed two next-day sessions with gains, and both were in November. Options traders are pricing in an 18.7% move for Thursday, regardless of direction, which is slightly larger than the 14% move the stock has averaged over the past eight quarters. 

Analysts are optimistic leading up to the event, however. SNOW received a flood of price-target hikes over the last two weeks, while both Wolfe Research and BTIG upgraded the stock to "buy" last week. Further, of the 42 analyst in coverage, 34 sport a "buy" or better rating.

Call traders have been chiming in as well. At the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Snowflake stock's 50-day call/put volume ratio of 3.29 ranks in the 98th percentile of its annual range, while its 10-day call/put volume ratio of 3.61 ranks in the 85th percentile. 

 

Published on Feb 26, 2025 at 2:43 PM
  • Most Active Options Update

AppLovin Corp (NASDAQ:APP) is down 13.9% to trade at $324.52 at last check, after Fuzzy Panda Research and Culper Research both said they were short on the tech name. The former said AppLovin steals data from Meta Platforms (META), and the latter noted it takes advantage of "app permissions that enable advertisements themselves to force-feed silent, backdoor app installations."

Short sellers have been building their positions over the past two weeks, with short interest up 12.9% in the last reporting period. The 14.10 million shares sold short now make up 6.1% of the equity's available float.

Despite its status as the best stock of 2024, APP could today mark its seventh-straight daily drop, as well as its biggest single-day percentage loss since December. The shares earlier gapped to their lowest level since November on a pullback from their Feb. 13, all-time high of $525.15, but sport a 443.8% year-over-year lead with support from the 100-day moving average.

APP 100 Day

Options traders are chiming in, with 120,000 calls and 85,000 puts traded so far -- triple the overall volume typically seen at this point. Most popular is the weekly 2/28 300-strike put, where new positions are being opened. 

Options look like a good way to weigh in on APP, too, as it has tended to outperform options traders' volatility expectations over the past year. This is per its Schaeffer’s Volatility Scorecard (SVS) of 85 out of 100. 

Published on Feb 26, 2025 at 12:11 PM
  • Quantitative Analysis

The shares of streaming giant Netflix Inc (NASDAQ:NFLX) pulled back alongside the broader market, logging losses in the past four sessions after hitting a Feb. 14 record high of $1,064.50. However, the security was last seen 2.3% higher to trade at $998.53, approaching a historically bullish trendline that fueled its climb to that peak and could provide additional tailwinds.

According to Schaeffer's Senior Quantitative Analyst Rock White, NFLX is nearing its 50-day moving average after spending a significant stretch above it. Specifically, 80% of the past two months, and eight of the last 10 trading days. In the last three years, the stock triggered this signal nine times, with a one-month gain occurring 67% of the time and averaging a 5.8% return. A similar move would place NFLX back above $1,050.

NFLX Chart February 262025

Despite the recent dip, the stock remains a strong performer, boasting an 12.2% year-to-date lead and a 66.3% gain over the past 12 months. The equity has climbed higher every month since August and is on track for its seventh consecutive monthly win.

Bearish bets have been piling up over the past two weeks, with Netflix stock's 10-day put/call volume ratio of 1 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) ranking in the 88th percentile of its annual range. This suggests an unusually high preference for puts over calls among traders, even as the equity trades near record highs.

Meanwhile, options appear to offer an attractive way to speculate on NFLX's next move. The stock's Schaeffer's Volatility Index (SVI) of 31% ranks in the 16th percentile of its annual range, indicating relatively low volatility expectations -- a boon for premium buyers.

Published on Feb 26, 2025 at 12:03 PM
  • Midday Market Check

Stocks are firmly higher midday, as investors unpack a flood of corporate earnings and await Nvidia's (NVDA) "make or break" report, due out after the close. The Dow Jones Industrial Average (DJI) and Nasdaq Composite Index (IXIC) are both up triple digits, the latter looking to snap a four-day losing streak alongside the S&P 500 Index (SPX). Also of note, new home sales dropped a sharp 10.5% in January, coming in at a seasonally adjusted annual rate of 657,000 units. 

Continue reading for more on today's market, including: 

  • 3 auto stocks in the spotlight today. 
  • Another home retailer posts upbeat earnings
  • Plus, options traders target LCID; SMCI surges on delayed filing; and XPEL plummets after quarterly report. 

MMC February26

Lucid Group Inc (NASDAQ:LCID) is down 13% at $2.27 at last look, after the unexpected departure of CEO Peter Rawlinson. The company also expects production to double in 2025 to 20,000 units. Options traders are targeting LCID after the news, with 59,000 calls and 124,000 puts exchanged so far -- already 2.8 times the stock's average daily options volume. The January 2026 2-strike put is the most popular, with new positions opening at the July 2 put. Since the start of the year, LCID is down 24.7%. 

Computer hardware name Super Micro Computer Inc (NASDAQ:SMCI) is up 21.4% at $55.30 at last glance, after the semiconductor company submitted its delayed 10-K filing results, which met Securities and Exchange Commission (SEC) requirements. Looking to snap a four-day losing streak, SMCI is up 77.7% year to date with help from this month's rally

SMCI February26

Xpel Inc (NASDAQ:XPEL) stock is down 15.3% at $34.16 at last check, after the auto parts name announced a fourth-quarter earnings miss, though revenue beat estimates. Gapping to its lowest levels since August, the shares are down 35.1% year over year. 

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