• Inflation data, Powell testimony, more earnings will be in focus this week.
• Robinhood’s strong financial health, robust outlook, and bullish analyst sentiment make it a compelling buy.
• Moderna’s shrinking revenue, expected losses, and weak financial score make it a stock to sell.
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U.S. stocks ended lower on Friday as a negative mix of news related to tariffs and inflation worried traders to close out the week.
Friday’s losses left the major averages in negative territory on the week. The 30-stock Dow Jones Industrial Average gave up 0.5%, the S&P 500 dipped 0.2% and the tech-heavy Nasdaq Composite fell 0.5%.
Source: Investing.com
The week ahead is expected to be another eventful one as investors gauge the outlook for the economy, inflation, and interest rates.
On the economic calendar, most important will be Wednesday’s U.S. consumer price inflation report for January, which could spark further turmoil if it comes in higher than expectations. The CPI data will be accompanied by the release of the latest figures on producer prices, which will help fill out the inflation picture, as well as the January retail sales report.
Meanwhile, the Fed’s rate view could become clearer when Chairman Jerome Powell delivers semiannual monetary policy testimony before the House Financial Services Committee on Tuesday and Wednesday.
Source: Investing.com
Traders now expect the U.S. central bank to cut interest rates just once this year, backing away from earlier bets on two rate cuts starting in June, as per the Investing.com Fed Monitor Tool.
Elsewhere, the busy earnings season continues with reports due from Cisco Systems (NASDAQ:CSCO), Shopify (NYSE:SHOP), Coinbase (NASDAQ:COIN), Robinhood (NASDAQ:HOOD), AppLovin (NASDAQ:APP), Reddit (NYSE:RDDT), Palo Alto Networks (NASDAQ:PANW), McDonald’s (NYSE:MCD), Coca-Cola (NYSE:KO), Moderna (NASDAQ:MRNA), CVS Health (NYSE:CVS), Airbnb (NASDAQ:ABNB), and DoorDash (NASDAQ:DASH).
Regardless of which direction the market goes, below I highlight one stock likely to be in demand and another which could see fresh downside. Remember though, my timeframe is just for the week ahead, Monday, February 10 – Friday, February 14.
Robinhood, the commission-free trading app popular with retail investors, is set to report its fourth quarter earnings update after the closing bell on Wednesday at 4:05PM ET, and expectations are sky-high.
Market participants predict a sizable swing in HOOD stock after the print drops, according to the options market, with a possible implied move of 12.4% in either direction. In a sign of growing confidence, the company has received three upward profit forecast revisions in recent days, with zero downward revisions.
Source: InvestingPro
Analysts forecast earnings per share (EPS) of $0.52, representing a staggering increase from a profit of $0.03 in the year-ago period. Revenue is projected to nearly double year-over-year to $951.8 million as Robinhood continues to expand its user base and capitalize on renewed momentum in crypto and equity trading.
The company has positioned itself as a leader in the retail investing space, benefiting from rising interest in stock and crypto trading. Robinhood’s improved operational efficiency and cost-cutting measures have also enhanced profitability.
Moreover, the retail brokerage firm has made strides in diversifying its revenue streams, particularly through its growing options trading and subscription-based products.
Source: Investing.com
Shares of Robinhood have been on a tear, hitting a series of record highs in recent sessions. HOOD closed at $55.86 on Friday, earning the company a valuation of $49.4 billion. The stock is up 50% so far in 2025, as optimism builds around its ability to benefit from a resurgent retail trading wave.
Additionally, Robinhood demonstrates impressive financial health, boasting an InvestingPro Health Score of 3.2 out of 5.0 (“Great”), which reflects a strong balance sheet, improving cash flow and efficient operations.
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On the other hand, Moderna is facing significant headwinds heading into its Q4 earnings report, scheduled for release later this week. The results are due ahead of Friday’s opening bell at 6:35AM ET and the expected move is about 11% up or down.
The once high-flying vaccine maker is struggling with declining demand for its COVID-19 shots, and analysts expect a disappointing quarter ahead amid concerns over weakening revenue growth, heavy R&D spending, and a lack of diversification. In the three months leading up to the earnings update, analysts have slashed their EPS estimates 12 times, compared to zero upward revisions.
Source: InvestingPro
Moderna is expected to post a Q4 loss of -$2.70 per share, a sharp reversal from the $0.55 profit recorded a year ago. Revenue is expected to plummet almost 70% year-over-year to $951.1 million.
The biotech company is now facing revenue growth challenges with limited near-term catalysts to offset declining demand as vaccine sales continue to decline.
Moderna’s non-COVID pipeline offers little near-term relief. Its experimental flu and RSV vaccines lag behind established players, leaving it overly reliant on a shrinking market.
Source: Investing.com
MRNA stock ended Friday’s session at $32.60, not far from a recent 52-week low of $31.94, which was the weakest level since April 2020. At its current valuation, Moderna has a market cap of $12.5 billion. Shares, which are trading below their key moving averages, are down 21.6% to start the new year.
Additionally, Moderna holds a below-average InvestingPro Financial Health Score of 2.1 out of 5.0, reflecting concerns about weak revenue performance and slowing growth prospects.
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Disclosure: At the time of writing, I am long on the S&P 500, and the Nasdaq 100 via the SPDR® S&P 500 ETF (SPY), and the Invesco QQQ Trust ETF (QQQ). I am also long on the Invesco Top QQQ ETF (QBIG), Invesco S&P 500 Equal Weight ETF (RSP), and VanEck Vectors Semiconductor ETF (SMH).
I regularly rebalance my portfolio of individual stocks and ETFs based on ongoing risk assessment of both the macroeconomic environment and companies’ financials.
The views discussed in this article are solely the opinion of the author and should not be taken as investment advice.
Follow Jesse Cohen on X/Twitter @JesseCohenInv for more stock market analysis and insight.
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