SoundHound AI Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOUN#NASDAQ">SOUN</a>) reported fourth-quarter financial results after the market close on Thursday. Here&#8217;s a rundown <a href="https://www.benzinga.com/pressreleases/25/02/b44024866/soundhound-ai-reports-record-fourth-quarter-revenue-up-101-exceeding-34-5-million-raises-full-year">of the report</a>.



Q4 Earnings: SoundHound reported fourth-quarter revenue of $34.54 million, beating the <a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">consensus estimate</a> of $33.69 million. The company reported an adjusted loss of five cents per share, beating analyst estimates for a loss of 10 cents per share, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Total revenue was up 101% on a year-over-year basis. The company reported an adjusted EBITDA loss of $16.8 million. SoundHound ended the quarter with $198 million in cash and cash equivalents.



&#8220;We had a breakthrough year, expanding our leadership position in voice and conversational AI through major customer wins, expanded partnerships, groundbreaking generative AI innovation, and strategic acquisitions,&#8221; said&nbsp;Keyvan Mohajer, co-founder and CEO of SoundHound AI.



&#8220;As we move into the era of Agentic AI, we are uniquely positioned to capitalize on this evolving category. Together with our existing broad portfolio of voice-enabled AI solutions we can deliver even greater commercial impact.&#8221;



See Also: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/02/44019376/salesforces-shares-drop-on-missed-fy-guidance-analyst-recommends-focus-on-bookings">Salesforce&#8217;s Shares Drop On Missed FY Guidance, Analyst Recommends Focus On Bookings</a>



Guidance: SoundHound raised its full-year 2025 revenue outlook to a range of $157 million to $177 million, up from a prior range of $155 million to $175 million.



SoundHound executives will further discuss the quarter on a conference call with investors and analysts at 5 p.m. ET.



SOUN Price Action: <a href="https://www.benzinga.com/quote/SOUN" target="_blank" rel="noreferrer noopener">SoundHound AI shares</a> were up 12.49% after hours, trading at $10.39 at the time of publication Thursday, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Photo: Shutterstock.

Earnings

News

Guidance

Movers

Tech

SOUN

SoundHound AI Q4 Earnings: Revenue Beat, EPS Beat, Raised Guidance Heading Into 'Era Of Agentic AI'

Rocket Lab USA Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RKLB#NASDAQ">RKLB</a>) reported fourth-quarter financial results after the market close on Thursday. Here&#8217;s a look at the key metrics <a href="https://www.benzinga.com/pressreleases/25/02/b44025344/rocket-lab-announces-full-year-fourth-quarter-2024-financial-results-posts-record-revenue-represen">from the quarter</a>.



Q4 Earnings: Rocket Lab reported fourth-quarter revenue of $132.39 million, beating the&nbsp;<a href="https://www.benzinga.com/calendars/earnings" target="_blank" rel="noreferrer noopener">consensus estimate</a>&nbsp;of $130.58 million. The end-to-end space company reported a fourth-quarter loss of 10 cents per share, in line with analyst estimates, according to&nbsp;<a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Total revenue was up 121% on a year-over-year basis. The company said it achieved a record 16 Electron launches in 2024, up 60% year-over-year. 



Rocket Lab ended the quarter with approximately $271 million in cash and cash equivalents, up from $162.5 million in the prior year&#8217;s quarter.



&#8220;2024 was a record-setting year for Rocket Lab, with our highest annual revenue ever posted of $436.2 million and a record Q4 2024 revenue of $132.4 million — a 382% increase compared to fourth quarter 2021, our first full quarter following our debut on the Nasdaq as a publicly-traded company,&#8221; said Peter Beck, founder and CEO of Rocket Lab.



&#8220;We rounded out the year with significant advancement across the Neutron program ahead of a planned debut launch in the second half of 2025. The Company&#8217;s strong performance across launch and space systems is foundational to Rocket Lab&#8217;s momentum toward delivering its own satellite service as a truly end-to-end space company.&#8221;



Check This Out: <a href="https://www.benzinga.com/markets/equities/25/02/44018649/spacex-rocket-launches-intuitive-machines-athena-lander-details">SpaceX Rocket Launches Intuitive Machines&#8217; Athena Lander: Details</a>



Outlook:&nbsp;Rocket Lab expects first-quarter revenue to be in the range of $117 million to $123 million versus estimates of $135.67 million. The company anticipates an adjusted EBITDA loss of $33 million to $35 million in the first quarter.



Rocket Lab executives will further discuss the quarter on a conference call with analysts and investors at 5 p.m. ET.



What Else: Rocket Lab also made a series of announcements in separate press releases after the market close on Thursday. 



The company announced a new satellite called &#8220;Flatellite&#8221; tailored for large constellations, the signing of a multi-launch agreement with Institute for Q-shu Pioneers of Space and new details about its &#8220;Return On Investment&#8221; ocean landing platform designed for its reusable Neutron rocket.



Neutron is currently slated to make its first launch in the second half of 2025. 



RKLB Price Action: <a href="https://www.benzinga.com/quote/RKLB" target="_blank" rel="noreferrer noopener">Rocket Lab shares</a> were down 7.47% after hours, trading at $18.35 at the time of publication Thursday, according to <a href="http://pro.benzinga.com/" target="_blank" rel="noreferrer noopener">Benzinga Pro</a>.



Photo: courtesy of Rocket Lab.

SPACE

After-Hours Center

RKLB

Rocket Lab Q4 Earnings: Revenue Beat, EPS Beat, New Satellite Product, Multi-Launch Agreement, Shares Slide On Soft Guidance

Louis Navellier, the growth investor behind Navellier &amp; Associates, joined Benzinga&#8217;s <a href="https://www.benzinga.com/premarket-prep">PreMarket Playbook</a> Thursday morning to discuss American exceptionalism in equity pricing, growth stocks and economic indicators <a href="https://www.benzinga.com/news/25/02/43949339/consumer-confidence-plummets-in-february-sharp-decline-marks-third-consecutive-monthly-drop">impacting the markets</a>.



<figure class="wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio"><div class="wp-block-embed__wrapper">
<iframe loading="lazy" title="Louis Navellier is Founder, Chairman of the Board, CIO and CCO of Navellier &amp; Associates" width="500" height="281" src="https://www.youtube.com/embed/uPSCQ-at1d0?feature=oembed" frameborder="0" allow="accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share" referrerpolicy="strict-origin-when-cross-origin" allowfullscreen></iframe>
</div></figure>



International Stocks: Navellier says he doesn&#8217;t pay attention to emerging markets.



&#8220;Everybody&#8217;s in a recession except for us,&#8221; Navellier said. &#8220;The growth in Asia is very weak, Thailand just cut their rates this week&#8230; we think China&#8217;s going to be the next Japan with rates at or near zero. They have huge demographic problems in Asia.&#8221;



The investor also noted weakness in Europe, particularly in the United Kingdom, France and Germany, which have experienced recessions.



Navellier says the United States&#8217; food and energy independence is a significant advantage. He noted President Donald Trump&#8216;s efforts to onshore industries currently <a href="https://www.benzinga.com/news/global/25/02/44010093/trumps-plan-for-canada-mexico-china-tariffs-to-start-march-4-could-shake-stock-market" target="_blank" rel="noopener">operating in other countries</a>. He also said states competing on business growth provide a unique framework for American success.



Growth Stocks: Navellier does not think that growth stocks are overvalued at their current valuations.



&#8220;I don&#8217;t mind paying a premium for NVIDIA [Corp] (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NASDAQ#NASDAQ">NASDAQ</a>), which is a monopoly. If you look at Super Micro Computer Inc (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SMCI#NASDAQ">SMCI</a>), it&#8217;s trading at a single-digit forecast of PE ratio. My average small-cap stock is only trading at 4.9 times next year&#8217;s estimated earnings. There&#8217;s not a valuation problem.&#8221;



Economic Indicators: Consumer confidence fell in February for the second straight month, perhaps a concerning sign for the U.S. economy. While Navellier has previously noted the February reading as a <a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/02/43955914/market-could-enter-a-real-correction-expert-warns">reason for concern</a>, the investor says the concerns over sentiment may be weather-related.



Navellier also noted positive manufacturing indicators and global news developments as reasons for positivity in the near future.



Also Read:



<ul>
<li><a href="https://www.benzinga.com/general/market-summary/25/02/44015237/pending-home-sales-crash-to-record-low-jobless-claims-soar-wall-street-reacts">Pending Home Sales Crash To Record Low, Jobless Claims Soar: Wall Street Reacts</a></li>
</ul>



Photo: Shutterstock

Asia

Equities

Emerging Markets

Exclusives

Markets

Interview

NVDA

SMCI

NASDAQ

Navellier Dismisses Emerging Markets: 'Everybody's In A Recession Except For Us'

The Federal Reserve is expected to maintain its current interest rate policy for the foreseeable future, according to Cleveland Fed President Beth Hammack, as policymakers continue to evaluate inflation trends and labor market conditions. Hammack emphasized patience on Thursday, stating that while progress has been made, inflation is not yet on track to consistently meet the 2% target.



What Happened: The Federal Reserve, following its latest policy discussions, signaled that interest rates are likely to remain unchanged for an extended period. 



Hammack underscored that while the job market remains strong, inflation&#8217;s decline has been uneven, justifying a cautious approach before considering rate cuts, Reuters reports. &#8220;We have made good progress, but 2% inflation is not in sight just yet,&#8221; she said. The central bank&#8217;s benchmark rate currently stands between 4.25% and 4.5%.



Also Read: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/02/44015322/nvidia-analyst-sees-significant-upside-for-stock-with-favorable-riskreward">Nvidia Analyst Sees &#8216;Significant Upside&#8217; For Stock With Favorable Risk/Reward</a>



Hammack, who joined the Fed in August 2024, also suggested that monetary policy may already be near a neutral stance. &#8220;Policy does not strike me as being meaningfully restrictive; or, put differently, we may be close to a neutral setting already,&#8221; she noted.



While some policymakers believe inflation will gradually decline, she cautioned that economic uncertainties, including potential inflationary risks from trade and immigration policies, remain a concern, according to Reuters.



Why It Matters: The Fed&#8217;s stance on interest rates impacts borrowing costs, investment decisions, and overall economic stability. Despite the recent cooling of inflation, concerns remain about potential upward pressure stemming from geopolitical risks and policy shifts. 



According to the minutes from the Federal Open Market Committee's (FOMC) January meeting, officials remain divided on how quickly rate cuts should be implemented. Policymakers stress the need for more data before <a href="https://www.benzinga.com/25/02/43829352/fomc-minutes">making any adjustments.</a>



Read Next:



<ul>
<li><a href="https://www.benzinga.com/general/market-summary/25/02/44015237/pending-home-sales-crash-to-record-low-jobless-claims-soar-wall-street-reacts">Pending Home Sales Crash To Record Low, Jobless Claims Soar: Wall Street Reacts</a></li>
</ul>



Image created using artificial intelligence via Midjourney.

Federal Reserve

Fed's Hammack: '2% Inflation Is Not In Sight'

The&nbsp;Consumer Financial Protection Bureau (CFPB) has dismissed multiple lawsuits that had been put in place by the <a href="https://www.benzinga.com/personal-finance/25/02/43752458/russell-vought-orders-pause-on-all-cfpb-activity-critics-say-this-gives-corporations-the-green-light-to-scam-families">agency&#8217;s former director</a>.



What To Know: The CFPB on Thursday&nbsp;issued four notices of voluntary dismissal for cases involving Capital One Financial Corp (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/COF#NYSE">COF</a>), Berkshire Hathaway Inc&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BRK#NYSE">BRK</a>) Vanderbilt Mortgage &amp; Finance, Rocket Companies Inc&#8217;s (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/RKT#NYSE">RKT</a>) Rocket Homes Real Estate and loan servicer Pennsylvania Higher Education Assistance Agency, according to <a href="https://www.cnbc.com/2025/02/27/cfpb-drops-capital-one-rocket-mortgage-affiliate-lawsuits.html">CNBC</a>. 



The notices of voluntary dismissal were released in legal filings Thursday morning and come amid a shakeup at the agency sparked by Elon Musk&#8217;s Department of Government Efficiency, or DOGE.



The report indicates that DOGE&#8217;s government efficiency initiative has led to the closing of the CFPB&#8217;s headquarters in Washington, and the dismissal of around 200 agency employees.



Check This Out: <a href="https://www.benzinga.com/personal-finance/25/02/44009020/ron-paul-responds-to-elon-musks-doge-invite-id-love-to-help-bring-sanity-back-warns-of-big-threat-to-retirement-funds-and-401ks">Ron Paul Responds To Elon Musk&#8217;s DOGE Invite: &#8216;I&#8217;d Love to Help Bring Sanity Back!&#8217; — Warns Of Big &#8216;Threat&#8217; To Retirement Funds And 401(k)s</a>



The enforcement shift also aligns with a change in directors after Russell Vought took over for former director Rohit Chopra earlier this month. 



Under Chopra, the CFPB accused Capital One of withholding more than $2 billion in interest; argued that Vanderbilt ignored affordability signs; accused Rocket of providing illegal payments to real estate agents; and targeted the Pennsylvania Higher Education Assistance Agency&#8217;s loan collection process.



&#8220;The Plaintiff, the Consumer Financial Protection Bureau, dismisses with prejudice this action against all Defendants," the agency reportedly said in the Capital One case dismissal. 



CNBC reported that the agency used similar language in the other cases.



Shares of Capital One, Berkshire Hathaway and Rocket Companies all moved higher following the dismissals.



At the time of publication, <a href="http://pro.benzinga.com">Benzinga Pro</a> shows.



<ul>
<li><a href="http://benzinga.com/quote/cof">Capital One shares</a> up 1.34% at $199.41</li>



<li><a href="https://www.benzinga.com/quote/brk-b">Berkshire shares</a> up 2.06% at $504.30 and </li>



<li><a href="http://benzinga.com/quote/rkt">Rocket Companies</a> shares 0.34% at $13.13.</li>
</ul>



Read Next:



<ul>
<li><a href="https://www.benzinga.com/general/market-summary/25/02/44018084/trumps-tariffs-potential-stagflation-whats-driving-markets-thursday">Trump&#8217;s Tariffs, Potential &#8216;Stagflation&#8217;: What&#8217;s Driving Markets Thursday?</a></li>
</ul>



Photo: Shutterstock.

Government

Legal

Capital One, Berkshire Hathaway, Rocket Companies Shares Move Higher After CFPB Drops Lawsuits

The S&amp;P 500 and Nasdaq both slipped into the red, reversing early gains on Thursday, while the Dow Jones remained in positive territory in midday trading. NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) led the tech sector lower after the company posted its smallest revenue beat in <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/02/44015322/nvidia-analyst-sees-significant-upside-for-stock-with-favorable-riskreward">years on Wednesday.</a>



Wall Street digested a slew of new <a href="https://www.benzinga.com/general/market-summary/25/02/44015237/pending-home-sales-crash-to-record-low-jobless-claims-soar-wall-street-reacts">economic data </a>including soaring jobless claims and pending home sales dropping to the lowest level on record in January. The second estimate of the fourth quarter 2024 real GDP showed signs of rising inflation with the personal consumption expenditures price index for the quarter revised up 0.1 percentage point, and core PCE revised up 0.2 percentage points. 



Read Next: <a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/02/43949800/tesla-competes-against-chinese-rivals-with-one-hand-tied-behind-its-back-analyst">Tesla Competes Against Chinese Rivals &#8216;With One Hand Tied Behind Its Back&#8217;: Analyst</a>



Economist Mohamed A. El-Erian pointed to the GDP revisions, rising jobless claims and drop in pending home sales as signs of potential trouble ahead.&nbsp;



"Once again, today&#8217;s U.S. economic data have somewhat of a scent of stagflation to them, adding to concerns that the global economy&#8217;s only reliable engine of growth risks playing a game of economic Twister with a foot on stagnation and a hand on inflation," El-Erian wrote in a social<a href="https://x.com/elerianm/status/1895142925786358101"> media post</a>.  



President Donald Trump confirmed Thursday that 25% tariffs on Mexico and Canada will go<a href="https://www.benzinga.com/news/global/25/02/44010093/trumps-plan-for-canada-mexico-china-tariffs-to-start-march-4-could-shake-stock-market"> into effect </a>on March 4. He added that imports from China will also see an additional 10% tariff on March 4, fueling fears that his tariff policies could lead to slower growth and higher inflation.&nbsp;



Bitcoin (CRYPTO: <a class="ticker" href="https://www.benzinga.com/quote/btc/usd">BTC</a>) traded below the $85,000 level and the yield on the U.S. 10-year Treasury note rose slightly to 4.29%. 



<h1 class="wp-block-heading">Thursday's Performance In Major U.S. Indices, ETFs</h1>



<figure class="wp-block-table"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Major Indices</td><td>Price</td><td>1 day % chg.</td></tr><tr><td>Nasdaq 100</td><td>18,951.46</td><td>-0.65%</td></tr><tr><td>S&amp;P 500</td><td>5,952.10</td><td>-0.07%</td></tr><tr><td>Dow Jones</td><td>43,695.32</td><td>0.60%</td></tr><tr><td>Russell 2000</td><td>2,163.19</td><td>0.50%</td></tr></tbody></table></figure>



According to Benzinga Pro data:



<ul>
<li>The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) was down 0.3% to $592.78.</li>



<li>The SPDR Dow Jones Industrial Average (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) climbed 0.4% at $436.08.</li>



<li>The tech-heavy Invesco QQQ Trust Series (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>) dipped 0.91% to $509.88.</li>



<li>The iShares Russell 2000 ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IWM#NYSE">IWM</a>) eased 0.53% to $214.54.</li>



<li>The Consumer Discretionary Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLY#NYSE">XLY</a>) was down 0.39% to $214.85.</li>



<li>The Energy Select Sector SPDR Fund (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/XLE#NYSE">XLE</a>) rose 1.1% to $90.11.</li>
</ul>



<h1 class="wp-block-heading">Thursday's Stock Movers </h1>



Salesforce, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) shares dipped Thursday after the<a href="https://www.benzinga.com/news/earnings/25/02/43991325/salesforce-shares-sink-after-q4-revenues-miss-estimates-weak-fy26-guidance-details"> company reported</a> worse-than-expected fourth-quarter sales results and issued FY26 and Q1 guidance below expectations. 



Stocks reacting to company earnings reports included:&nbsp;



<ul>
<li>NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) </li>



<li>IonQ, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/IONQ#NYSE">IONQ</a>) </li>



<li>MARA Holdings, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MARA#NASDAQ">MARA</a>) </li>



<li>Salesforce, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) </li>



<li>Snowflake, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNOW#NYSE">SNOW</a>)</li>



<li>eBay, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/EBAY#NASDAQ">EBAY</a>) </li>



<li>C3.ai, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/AI#NYSE">AI</a>) </li>



<li>Joby Aviation, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/JOBY#NYSE">JOBY</a>) </li>



<li>Virgin Galactic Holdings, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPCE#NYSE">SPCE</a>) </li>



<li>Beyond Meat, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/BYND#NASDAQ">BYND</a>)</li>
</ul>



Companies reporting after Thursday's closing bell include:&nbsp;



<ul>
<li>Rocket Lab USA, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RKLB#NASDAQ">RKLB</a>) </li>



<li>SoundHound AI, Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/SOUN#NASDAQ">SOUN</a>) </li>



<li>Dell Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DELL#NYSE">DELL</a>) </li>



<li>Duolingo, Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DUOL#NYSE">DUOL</a>) </li>



<li>Sunrun Inc. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/RUN#NASDAQ">RUN</a>) </li>



<li>Archer Aviation Inc.  (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/ACHR#NYSE">ACHR</a>) </li>



<li>Talen Energy Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/TLN#NASDAQ">TLN</a>) </li>



<li>Clover Health Investments, Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/CLOV#NASDAQ">CLOV</a>) </li>



<li>Edison International (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EIX#NYSE">EIX</a>)</li>
</ul>



Read Next:<a href="https://www.benzinga.com/news/econ-s/25/02/43977811/mortgage-rates-drop-to-lowest-levels-since-december-but-housing-market-remains-largely-stuck"> </a>



<ul>
<li><a href="https://www.benzinga.com/news/econ-s/25/02/43977811/mortgage-rates-drop-to-lowest-levels-since-december-but-housing-market-remains-largely-stuck">Mortgage Rates Drop To Lowest Levels Since December, But Housing Market Remains &#8216;Largely Stuck&#8217;&nbsp;</a></li>
</ul>



Photo: Shutterstock

Large Cap

Market Summary

Sector ETFs

Bonds

Broad U.S. Equity ETFs

Economics

ETFs

General

$BTC

ACHR

BYND

CLOV

DELL

DUOL

EBAY

IONQ

JOBY

MARA

SNOW

SPCE

Trump's Tariffs, Potential 'Stagflation': What's Driving Markets Thursday?

Wall Street is digesting a slew of economic data Thursday following updates on pending home sales, jobless claims and fourth quarter GDP estimates. Here's a look at the data and how the <a href="https://www.benzinga.com/news/econ-s/25/02/44007082/q4-gdp-holds-at-2-3-after-minor-revision-in-second-estimate">markets are reacting. </a>



GDP: The second estimate released Thursday by the U.S. Bureau of Economic Analysis revised fourth quarter 2024 real GDP up by less than 0.1 percentage point, due mainly to higher-than-expected increases in government spending and exports. 



There were signs of rising inflation in the GDP data, including upward revisions to price indexes closely monitored by the Federal Reserve.&nbsp;



The personal consumption expenditures price index for the quarter indicated a 2.4% gain, revised up 0.1 percentage point, and a 2.7% gain, revised up 0.2 percentage points, when excluding food and energy.



Read Next:<a href="https://www.benzinga.com/news/econ-s/25/02/43977811/mortgage-rates-drop-to-lowest-levels-since-december-but-housing-market-remains-largely-stuck"> Mortgage Rates Drop To Lowest Levels Since December, But Housing Market Remains &#8216;Largely Stuck&#8217;&nbsp;</a>



The revisions come as President Donald Trump promises <a href="https://www.benzinga.com/news/global/25/02/44010093/trumps-plan-for-canada-mexico-china-tariffs-to-start-march-4-could-shake-stock-market">heavier tariffs</a> on a variety of trade partners, fueling fears that the policies could lead to lower growth and higher inflation.&nbsp;



&#8220;The immediate policy changes from the new administration (immigration enforcement and tariffs) are likely to weigh on growth while providing little relief on inflation,&#8221; Morgan Stanley analyst Mike Wilson wrote in a note to clients on Monday, as <a href="https://finance.yahoo.com/news/gdp-us-economy-grows-at-23-annualized-pace-in-fourth-quarter-matching-estimates-133216310.html">reported by</a> Yahoo Finance.&nbsp;



Jobless Claims: Thursday's data also showed initial jobless claims rose by 22,000 from the previous week to 242,000, the most in over two months and above market expectations of 221,000, indicating further softening of the job market.&nbsp;



However, recurring jobless claims dipped by 5,000 to 1,862,000 in the second week of February, below market expectations of 1,870,000, as tracked by Trading Economics.&nbsp;



"This report showed a healthy gain, but not the first ripples of what likely will be a major wave of unemployment claims, both from layoffs in the federal workforce and at companies such as Starbucks and Southwest," wrote Robert Frick, corporate economist at Navy Federal Credit Union, <a href="https://www.cnbc.com/2025/02/27/weekly-jobless-claims-jump-to-242000-more-than-expected-in-latest-sign-of-economic-softening.html">per</a> CNBC.&nbsp;



Pending Home Sales: Pending home sales fell 4.6% in January 2025 to the lowest level on record as mortgage rates held above 7% for the entire month.&nbsp;



&#8220;It is unclear if the coldest January in 25 years contributed to fewer buyers in the market, and if so, expect greater sales activity in upcoming months. However, it&#8217;s evident that elevated home prices and higher mortgage rates strained affordability," NAR Chief Economist Lawrence Yun said.&nbsp;



Markets React: The three major U.S. indices are mixed on Thursday with the Dow Jones trading higher and the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>), tracking the S&amp;P 500, down 0.15% at $593.53. The Invesco QQQ Trust (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), tracking the Nasdaq 100 index, was down 0.79% at $510.52 at the time of publication Thursday. 



Read Next:



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<li><a href="https://www.benzinga.com/government/regulations/25/02/43903335/financial-crime-weekly-1-4-billion-ethereum-stolen-in-largest-crypto-hack-ever-sec-creates-cyber-and-emerging-technologies-unit">Financial Crime Weekly: $1.4 Billion Ethereum Stolen In Largest Crypto Hack Ever, SEC Creates Cyber And Emerging Technologies Unit</a></li>
</ul>



Photo: Shutterstock

Econ #s

Real Estate

Pending Home Sales Crash To Record Low, Jobless Claims Soar: Wall Street Reacts

NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) analysts see strong Blackwell demand and improved guidance, brushing off several concerns for the semiconductor company after its <a href="https://www.benzinga.com/news/earnings/25/02/43991607/nvidia-q4-earnings-highlights-revenue-beat-eps-beat-demand-for-blackwell-is-amazing">fourth-quarter financial results.</a>



The Nvidia Analysts: 



<ul>
<li>JPMorgan analyst Harlan Sur reiterated an Overweight rating on Nvidia with a $170 price target.</li>



<li>Rosenblatt analyst Kevin Cassidy reiterated a Buy rating with a $220 price target.</li>



<li>Needham analyst Quinn Bolton maintained a Buy rating with a $160 price target.</li>



<li>KeyBanc analyst John Vinh maintained an Overweight rating with a $190 price target.</li>
</ul>



JPMorgan on NVDA: Fourth quarter financials reflected solid results with guidance showing continued demand that outstrips supply, Sur said in a new investor note.



The analyst said Blackwell shipments are expected to ramp higher through the year based on management commentary.



"Demand for Blackwell is very strong and will continue to outstrip supply for several quarters. We believe the team did a good job on addressing AI model innovations like DeepSeek," Sur said.



Sur said Nvidia did a good job executing across all segments. The analyst said the first half of the year is typically seasonally weaker than the second half, but strong demand for PC gaming, data center and automotive could offset seasonal weakness.



"We anticipate significant upside in the shares, driving our Overweight rating."



Read Also: <a href="https://www.benzinga.com/24/11/41888032/nvidia-ceo-jensen-huang-said-nvidia-has-no-long-term-strategy-how-this-philosophy-is-similar-to-his-reason-to-not-wear-a-watch">Nvidia CEO Jensen Huang Doesn&#8217;t Wear A Watch After A Gardner Taught Him The Secret Of Time</a>



Rosenblatt on NVDA: The semiconductor company reported a strong beat and raise in the fourth quarter, Cassidy said in a new investor note.



The analyst said the improved guidance comes with better-than-expected Blackwell shipments of $11 billion versus prior guidance of "several billion."



"While investors may nitpick the magnitude of the beat, gross margin pressure, and temporary Networking weakness, we view these as near-term fluctuations," Cassidy said.



The analyst said GTC in mid-March now serves as the next catalyst for Nvidia stock.



"We anticipate updates on NVIDIA's technology roadmap and new AI inference use cases to drive further excitement."



Cassidy said non-GAAP gross margins of 73.5% were in line with estimates, and the decline comes as the company transitions to higher-cost systems within the Data Center business segment.



The analyst raised estimates for revenue and earnings per share for the first quarter, fiscal 2026 and fiscal 2027 after the financial results.



Needham on NVDA: Blackwell is ramping at a record pace and could push aside supply chain noise, Bolton said in a new investor note.



"Initial Blackwell revenue is well above expectations," Bolton said.



The analyst said the strong Blackwell demand comes a quarter after overheating rumors and on the heels of DeepSeek concerns for the sector.



"We aren't surprised to see supply chain impacts, which are coming across better than feared in our view."



Bolton said Nvidia stock is a buy, thanks to its attractive valuation and favorable risk/reward profile.



KeyBanc on NVDA: Fourth quarter results and guidance were solid for Nvidia, Vinh said in a new investor note.



The analyst said Nvidia brushed off concerns from DeepSeek during the quarter. Management said DeepSeek could be a net positive for the demand side with learning demand for compute higher than pre-training.



"Given recently released earnings and guidance, we're encouraged by these results and are fine-tuning ests." Vinh said.



Vinh noted that Nvidia has sought to diversify with growth in high-performance computing, automotive and data center, segments that "should drive meaningful growth over the next few years.



"We see limited competitive risks and expect NVDA to continue to dominate one of the fastest growing workloads in cloud and enterprise."



NVDA Price Action: Nvidia stock is down 4% to $126.00 on Thursday versus a 52-week trading range of $75.61 to $153.13. Nvidia stock is down 8.7% year-to-date in 2025 with shares up 60.5% over the last year.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/news/management/24/10/41294313/does-jensen-huang-check-nvidia-stock-price-daily">Does Jensen Huang Check Nvidia Stock Price Daily?</a></li>
</ul>



Photo: Evolf/Shutterstock.com

Analyst Color

Price Target

Reiteration

Analyst Ratings

Trading Ideas

Nvidia Analyst Sees 'Significant Upside' For Stock With Favorable Risk/Reward

President Donald Trump's plan to place tariffs on Mexico and Canada and a higher tariff on China will take place on March 4, a move that could impact multiple sectors and cause worry <a href="https://www.benzinga.com/news/global/25/02/43442219/why-beer-tequila-avocados-cars-iphone-prices-could-rise-trumps-tariffs-on-canada-mexico-china-to-hurt-several-sectors">for American consumers.</a>



 What Happened: Trump's <a href="https://www.benzinga.com/markets/25/02/43965690/trumps-proposed-tariffs-could-deal-12-billion-blow-to-us-restaurants-industry-warns">proposed tariffs </a>on Canada and Mexico were paused on Feb. 3 for one month after agreements were reached with both nations over border security controls and efforts to improve trade relations.



Those pauses are now set to be lifted with Trump saying the 25% tariffs on Mexico and Canada will go into effect on March 4, with China to get an additional 10% tariff on March 4 as well.



Trump had <a href="https://www.benzinga.com/news/global/25/02/43926015/trump-confirms-tariffs-on-canada-mexico-will-take-effect-as-planned">said earlier this week</a> that the tariffs were still planned to go into effect, an item he confirmed in a Truth Social <a href="https://truthsocial.com/@realDonaldTrump/posts/114076153524132682">post </a>Thursday morning.



"Drugs are still pouring into our Country from Mexico and Canada at very high and unacceptable levels. A large percentage of these Drugs, much of them in the form of Fentanyl, are made in, and supplied by, China," Trump said in his post.



The president alleges that more than 100,000 people died last year due to these drugs, with millions dying in the last two decades.



"We cannot allow this scourge to continue to harm the USA, and therefore, until it stops, or is seriously limited, the proposed TARIFFS scheduled to go into effect on MARCH FOURTH will, indeed, go into effect, as scheduled. China will likewise be charged and additional 10% Tariff on that date," he wrote.



Trump also said the April Second Reciprocal Tariff date will remain in "full force and effect," which follows a study being done on trade balances with countries worldwide.



Read Also: <a href="https://www.benzinga.com/news/global/25/02/43795579/warren-buffett-unfazed-by-trumps-tariff-threats-oracle-of-omaha-bets-on-mexico-beer">Warren Buffett Unfazed By Trump&#8217;s Tariff Threats: Oracle Of Omaha Bets On Mexico, Beer</a>



Why It's Important: Tariffs on Mexico, Canada and China are expected to impact numerous sectors in the U.S., including automotive, food and beverage, beer and spirits, oil and consumer goods.



Benzinga <a href="https://www.benzinga.com/trading-ideas/25/02/43827291/exclusive-will-trumps-tariffs-hurt-or-help-stock-market-59-say-this">recently asked</a> if the tariffs could impact stock market indexes like the S&amp;P 500, which is tracked by the&nbsp;SPDR S&amp;P 500 ETF Trust&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>).



&#8220;How will Trump&#8217;s tariffs affect the stock market?&#8221; Benzinga asked.



The results were:



<ul>
<li>Weigh down: 59%</li>



<li>Push higher: 23%</li>



<li>No real impact: 19%</li>
</ul>



The majority of respondents said Trump&#8217;s tariffs will send the stock market lower. The remaining voters were split nearly even between the stock market going higher as the result of tariffs or the tariffs not having a real impact on stock market returns.



Price Action: After initially trading down in premarket, stock indexes have turned positive Thursday. A strong<a href="https://www.benzinga.com/news/earnings/25/02/43991607/nvidia-q4-earnings-highlights-revenue-beat-eps-beat-demand-for-blackwell-is-amazing"> earnings report from</a> NVIDIA Corporation Wednesday and the stock trading higher Thursday could be offsetting tariff concerns.



The SPDR Dow Jones Industrial Average ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DIA#NYSE">DIA</a>) is up 0.2% to $435.03 on Thursday versus a 52-week trading range of $376.15 to $451.54.



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) is up 0.4% to $591.11 on Thursday versus a 52-week trading range of $493.86 to $613.23.



Country themed ETFs of the three nations to be hit with tariffs were down on Thursday.



iShares MSCI Mexico ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWW#NYSE">EWW</a>) is down 0.3% to $51.33 Thursday versus a 52-week trading range of $46.43 to $71.11.



iShares MSCI Canada ETF (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/EWC#NYSE">EWC</a>) is down 0.5% to $41.22 Thursday versus a 52-week trading range of $35.74 to $43.33.



iShares MSCI China ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/MCHI#NASDAQ">MCHI</a>) is down 0.3% to $55.22 Thursday versus a 52-week trading range of $38.40 to $59.78.



Read Next: 



<ul>
<li><a href="https://www.benzinga.com/etfs/broad-u-s-equity-etfs/25/01/43041374/exclusive-how-high-will-sp-500-go-under-donald-trump-in-2025-readers-are-optimistic-26-say-this">EXCLUSIVE: How High Will S&amp;P 500 Go Under Donald Trump In 2025? Readers Are Optimistic, 26% Say This…</a></li>
</ul>



Photo: Shutterstock

Emerging Market ETFs

Global

MCHI

Trump's Plan For Canada, Mexico, China Tariffs To Start March 4 Could Shake Stock Market

NVIDIA Corporation (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) shares are moving lower Thursday. The stock is reversing amid a possible trader selloff after<a href="https://www.benzinga.com/markets/equities/25/02/43999126/nvidias-q4-revenue-surges-to-393b-nearly-8x-higher-than-five-years-ago-analysts-debate-stocks-next-move"> reporting fourth-quarter financial results</a>.



What To Know: Nvidia posted record revenue of $39.3 billion for the fourth quarter, surpassing the consensus estimate of $38.05 billion, according to <a href="http://pro.benzinga.com">Benzinga Pro</a>. The company&#8217;s top-line results were up 78% year-over-year and 12% sequentially.



Earnings per share came in at 89 cents, versus analyst estimates of 84 cents per share. Nvidia reported 82% earnings growth on a year-over-year basis.



Nvidia's data center segment led the strong growth, generating $35.6 billion in revenue, up 93% year-over-year. Automotive revenue more than doubled to $570 million, while the gaming and AI PC segment saw a decline, reporting $2.5 billion in revenue, down 11% from the prior year.



The company's full fiscal-year revenue reached $130.5 billion, marking a 114% increase year-over-year and setting a new company record.



&#8220;We&#8217;ve successfully ramped up the massive-scale production of Blackwell AI supercomputers, achieving billions of dollars in sales in its first quarter. AI is advancing at light speed as agentic AI and physical AI set the stage for the next wave of AI to revolutionize the largest industries,&#8221; said Jensen Huang, founder and CEO of Nvidia.



See Also: <a href="https://www.benzinga.com/news/global/25/02/44010093/trumps-plan-for-canada-mexico-china-tariffs-to-start-march-4-could-shake-stock-market">Trump&#8217;s Plan For Canada, Mexico, China Tariffs To Start March 4 Could Shake Stock Market</a>



Looking ahead, Nvidia provided first-quarter revenue guidance of $43 billion, plus or minus 2%, versus estimates of $41.75 billion. The company also expects non-GAAP gross margins to reach 71%.



Following Nvidia's quarterly results, several analysts raised price targets. 



Truist Securities increased its target from $204 to $205 while maintaining a <a href="https://www.benzinga.com/analyst-stock-ratings">Buy rating</a>. Morgan Stanley raised its target from $152 to $162 with an Overweight rating. BofA Securities lifted its target from $190 to $200 while maintaining a Buy stance. Needham reiterated its Buy rating with a $160 price target and Rosenblatt maintained a Buy and price target of $220.



NVDA Price Action: Despite the positive financial performance and upward price target revisions, Nvidia shares are under pressure on Thursday. Although the stock traded above $135 in early trading, it was down 3.18% at $127.09 at the time of publication, according to <a href="https://pro.benzinga.com/dashboard?new_user=False&amp;backend=google-oauth2">Benzinga Pro.</a>



<figure class="wp-block-image size-large is-resized"><a href="https://bzresearch.myclickfunnels.com/benzinga-pro-content-webinar-registration/?utm_source=BZprocontent022725&amp;t=be2bearmibe3na1"><img loading="lazy" decoding="async" width="1024" height="521" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/27100656/Screenshot-2025-02-27-at-10.06.27-1024x521.png" alt="" class="wp-image-801775" style="width:535px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/27100656/Screenshot-2025-02-27-at-10.06.27-1024x521.png 1024w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/27100656/Screenshot-2025-02-27-at-10.06.27-300x153.png 300w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/27100656/Screenshot-2025-02-27-at-10.06.27-768x391.png 768w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/27100656/Screenshot-2025-02-27-at-10.06.27-1536x782.png 1536w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/27100656/Screenshot-2025-02-27-at-10.06.27.png 1550w" sizes="(max-width: 1024px) 100vw, 1024px" /></a></figure>



Read Next:



<ul>
<li><a href="https://www.benzinga.com/news/econ-s/25/02/44007082/q4-gdp-holds-at-2-3-after-minor-revision-in-second-estimate">Q4 GDP Holds At 2.3% After Minor Revision In Second Estimate</a></li>
</ul>



Image via Shutterstock.

Nvidia Shares Dip Despite Strong Q4 Earnings Beat, Record Revenue: What's Going On?

The second estimate released Thursday by the U.S. Bureau of Economic Analysis revised the real GDP up by less than 0.1 percentage point from the previous month&#8217;s advance estimate. The U.S. economy experienced a slowdown in growth during the fourth quarter of 2024, with real GDP increasing at an annual rate of 2.3%, down from 3.1%<a href="https://www.benzinga.com/news/25/01/42934513/job-growth-fed-jitters-and-rising-mortgage-rates-this-week-in-economics"> in the third quarter.&nbsp;</a>



The slight upward revision was <a href="https://www.bea.gov/index.php/news/2025/gross-domestic-product-4th-quarter-and-year-2024-second-estimate">due mainly</a> to higher-than-expected increases in government spending and exports, which were partially balanced by lower-than-expected adjustments in consumer spending and investment.



Read Next:<a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/02/43949800/tesla-competes-against-chinese-rivals-with-one-hand-tied-behind-its-back-analyst"> </a><a href="https://www.benzinga.com/news/econ-s/25/02/43977811/mortgage-rates-drop-to-lowest-levels-since-december-but-housing-market-remains-largely-stuck">Mortgage Rates Drop To Lowest Levels Since December, But Housing Market Remains &#8216;Largely Stuck&#8217;&nbsp;</a>



<h2 class="wp-block-heading">Q4 2024 GDP Key Points:</h2>



<ul>
<li>The price index for gross domestic purchases increased 2.3% in the fourth quarter, revised up 0.1 percentage point from the previous estimate. </li>



<li>The personal consumption expenditures (PCE) price index increased 2.4%, revised up 0.1 percentage point. </li>



<li>Excluding food and energy prices, the PCE price index increased 2.7%, revised up 0.2 percentage point.</li>
</ul>



<h2 class="wp-block-heading">2024 GDP Key Points:&nbsp;</h2>



<ul>
<li>Real GDP increased 2.8% in 2024 (from the 2023 annual level to the 2024 annual level), as previously estimated.&nbsp;</li>



<li>The increase in real GDP in 2024 reflected increases in consumer spending, investment, government spending and exports.</li>



<li>The price index for gross domestic purchases increased 2.4% in 2024, revised up 0.1 percentage point. </li>



<li>The PCE price index increased 2.5%, as previously estimated.&nbsp;</li>



<li>Excluding food and energy prices, the PCE price index rose 2.8%, also as previously estimated.&nbsp;</li>
</ul>



<h3 class="wp-block-heading">Market Reactions</h3>



Futures on U.S. equity indices are moving higher in Thursday's premarket session. Contracts on the blue-chip index were 0.16% higher at 8:50 a.m. in New York.&nbsp;



S&amp;P 500 futures were 0.57% higher, after the SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) closed 0.05% higher on Wednesday.



The benchmark 10-year yield rose to 4.286%. Gold, as tracked by the SPDR Gold Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/GLD#NYSE">GLD</a>), fell 1% to $266.32.&nbsp;



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<li><a href="https://www.benzinga.com/analyst-ratings/analyst-color/25/02/43949800/tesla-competes-against-chinese-rivals-with-one-hand-tied-behind-its-back-analyst">&nbsp;Tesla Competes Against Chinese Rivals &#8216;With One Hand Tied Behind Its Back&#8217;: Analyst</a></li>
</ul>



Image: Shutterstock

Futures

Q4 GDP Holds At 2.3% After Minor Revision In Second Estimate

On Thursday, Warner Bros. Discovery, Inc&nbsp;(NASDAQ:&nbsp;WBD) reported a <a target="_blank" href="https://www.benzinga.com/topic/movie-stocks" rel="noreferrer noopener">fiscal fourth-quarter revenue</a> decline of 1% ex-FX year-on-year to $10.03 billion, marginally missing the&nbsp;analyst consensus estimate of&nbsp;$10.19 billion.&nbsp;



The EPS loss of 20 cents missed the&nbsp;<a target="_blank" href="https://www.benzinga.com/calendars/earnings" rel="noreferrer noopener">analyst consensus estimate of a 5 cent gain. The net</a> loss was $494 million, widened from a loss of 400 million year over year.



Also Read: <a target="_blank" href="https://www.benzinga.com/25/02/43982868/warner-bros-faces-gaming-woes-as-wonder-woman-title-halted-franchise-strategy-reworked" rel="noreferrer noopener">Warner Bros. Shuts Down Game Studios, Struggles To Revive DC and Harry Potter Franchise Success</a>



The company reported an adjusted EBITDA of $2.72 billion, an 11% ex-FX growth.



Studios&nbsp;revenues&nbsp;were $3.66 billion, up 16% ex-FX Y/Y on a pro forma combined basis. Content revenue increased by 16%, driven by an increase in TV revenue, offset by a decline in Theatrical and Games revenue.&nbsp;



Theatrical revenue decreased 9% ex-FX due to fewer releases in the current year.



Games revenue declined 29% ex-FX due to the better performance of Hogwarts Legacy and Mortal Kombat 1 in the prior-year quarter.



Networks&nbsp;revenues&nbsp;were $4.77 billion, down by 4% ex-FX, on a pro forma combined basis.&nbsp;Distribution revenue decreased 4% ex-FX, primarily driven by declines in U.S. pay-TV subscribers and the impact of the AT&amp;T SportsNet exit.&nbsp;



Advertising revenue fell 16% ex-FX, primarily driven by audience declines in domestic networks and soft advertising markets, mainly in the U.S.



Content revenue increased 74% ex-FX, primarily due to the timing of content licensing deals.



DTC revenues were $2.65 billion, up 6% ex-FX Y/Y on a pro forma combined basis. Distribution revenue increased by 8% ex-FX, primarily driven by a 20% increase in subscribers and higher pricing following the launch of Max in Latin America and Europe during the first half of 2024.



Advertising revenue increased 27% ex-FX, primarily driven by increased domestic ad-lite subscribers.



Total DTC subscribers increased to 116.9 million from 110.5 million a year ago. Global DTC ARPU was $7.44, a 5% ex-FX decrease from the prior year driven by lower ARPU international markets, ad-tier subscriber growth, and domestic wholesale subscribers, partially offset by higher pricing.



Warner Bros. added 6.4 million Max subscribers during the quarter, gaining momentum after launching service in Latin America and Europe last year, Bloomberg <a target="_blank" href="https://www.bloomberg.com/news/articles/2025-02-27/warner-bros-streaming-gains-helps-offset-decline-in-tv-networks?sref=TBDibEcD" rel="noreferrer noopener">reports</a>.



In the fourth quarter, WBD generated $2.72 billion in operating cash flow and $2.43 billion in free cash flow and held $5.4 billion in cash and equivalents.&nbsp;



The company set a goal for 150 million streaming subscribers in 2026.



Price Action: WBD stock is up 6.00% at $11.10 premarket at&nbsp;the last check Thursday.



Also Read:



<ul>
<li><a href="https://www.benzinga.com/25/02/43973550/photronics-q1-earnings-beats-estimates-strong-ic-demand-growth-in-high-end-products-ceo-cautious-on-2025-outlook" target="_blank" rel="noreferrer noopener">Photronics Q1 Earnings: Beats Estimates, Strong IC And FPD Demand, Growth in High-End Products, CEO Cautious on 2025 Outlook</a></li>
</ul>



Photo by rafapress on Shutterstock

Warner Bros Q4 Earnings: Studios Revenues Grow 16%, Max Subscribers Surge, Eyes 150 Million Subscribers By 2026

NVIDIA Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) reported fourth-quarter revenue of $39.3 billion, representing an extraordinary growth trajectory that has seen quarterly revenue multiply nearly eight times in just five years, according to data shared Wednesday by The Kobeissi Letter.



What Happened: The chipmaker&#8217;s daily revenue reached $427 million throughout the fourth quarter, with data center sales—primarily from AI-focused GPUs—surging 93% year-over-year to $35.6 billion, now accounting for over 90% of total revenue.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Nvidia&#39;s, <a href="https://twitter.com/search?q=%24NVDA&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$NVDA</a>, Q4 Revenue by Year: 1. 2015: $1.4B 2. 2016: $2.2B 3. 2017: $2.9B 4. 2018: $2.2B 5. 2019: $3.1B 6. 2020: $5B 7. 2021: $7.6B 8. 2022: $6.1B 9. 2023: $22.1B 10. 2024: $39.3B Nvidia&#39;s Q4 2024 revenue of $39.3 billion is now nearly 8 TIMES higher than it was 5 years…&mdash; The Kobeissi Letter (@KobeissiLetter) <a href="https://twitter.com/KobeissiLetter/status/1894862360029929924?ref_src=twsrc%5Etfw">February 26, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Despite beating analyst expectations with earnings per share of $0.89 versus $0.84 expected and revenue exceeding forecasts by $1 billion, NVDA shares traded slightly lower after the announcement, continuing a pattern of muted post-earnings reactions.



Analyst John Kicklighter noted that the stock exhibited &#8220;lots of volatility, but no clear direction,&#8221; with a range of approximately 8% from the spot relative to Nvidia.



RiskReversal Co-Founder Guy Adami expressed concern about potential margin deceleration, <a href="https://www.cnbc.com/video/2025/02/26/fast-money-traders-talk-nvidia-q4-results.html">telling</a> CNBC, &#8220;If margins start to decelerate, that&#8217;s when these stories typically get long in the tooth.&#8221;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">Nvidia earnings beats versus expectations. &#8211; EPS of $0.89 vs $0.84 expected &#8211; Revenue of $39.3 Bln vs $38.3 Bln expected Lot&#39;s of volatility, but no clear direction. Range of ~8% of spot from <a href="https://twitter.com/search?q=%24NVDA&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$NVDA</a>: <a href="https://t.co/r4n2r0ZqU1">pic.twitter.com/r4n2r0ZqU1</a>&mdash; John Kicklighter (@JohnKicklighter) <a href="https://twitter.com/JohnKicklighter/status/1894863290414535071?ref_src=twsrc%5Etfw">February 26, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Why It Matters: CEO Jensen Huang highlighted increasing computational demands in AI, saying that next-generation models require &#8220;100 times more compute&#8221; than earlier versions. He specifically cited DeepSeek&#8217;s R1, OpenAI&#8217;s GPT-4, and xAI&#8217;s Grok 3 as examples of models using <a href="https://www.benzinga.com/markets/equities/25/02/43995515/jensen-huang-says-deepseek-was-fantastic-next-gen-models-demand-100x-more-compute-as-nvidia-smashes-earnings-records">intensive reasoning processes</a>.



&#8220;DeepSeek was fantastic,&#8221; Huang said, praising its open-source reasoning model despite the company&#8217;s stock dropping 17% in January over concerns that DeepSeek had found ways to achieve better AI performance with lower infrastructure costs.



Nvidia forecasts <a href="https://www.benzinga.com/news/earnings/25/02/43991607/nvidia-q4-earnings-highlights-revenue-beat-eps-beat-demand-for-blackwell-is-amazing">first-quarter revenue</a> of $43 billion, topping estimates of $41.75 billion. Huang says Blackwell AI supercomputers saw &#8220;billions in sales&#8221; in their first quarter as the company ramped up &#8220;massive-scale production.&#8221;



NVDA currently has a consensus price target of $172.28 based on 40 analysts, with recent targets from Rosenblatt, Morgan Stanley, and Tigress Financial implying a potential 52.59% upside.



<figure class="wp-block-image aligncenter size-full is-resized"><img decoding="async" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/27023437/Screenshot-2025-02-27-at-1.03.40%E2%80%AFPM.png" alt="" class="wp-image-800908" style="width:703px;height:auto"/></figure>



Read Next: 



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<li><a href="https://www.benzinga.com/25/02/43995014/elon-musks-influence-over-the-government-set-to-increase-trump-orders-all-federal-agencies-to-appoint-a-doge-commissar">Elon Musk&#8217;s Influence Over The Government Set To Increase, Trump Orders All Federal Agencies To Appoint A DOGE Commissar</a></li>
</ul>



Image Via Shutterstock



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Nvidia's Q4 Revenue Surges Over 78%, Nearly 8x Higher Than 5 Years Ago: Analysts Debate Stock's Next Move As Jensen Huang Says Blackwell Production Has Been Ramped Up

U.S. President Donald Trump has terminated an oil agreement with Venezuela, revoking a license previously granted to&nbsp;Chevron Corp&nbsp;(NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CVX#NYSE">CVX</a>) by former President Joe Biden.



What Happened: Trump took to his Truth Social to announce the cancellation of Chevron&#8217;s Venezuela operations on Wednesday. This was based on the lack of progress on electoral reforms and migrant returns by Venezuelan President Nicolas Maduro. Though Trump did not mention Chevron in his post, the date mentioned, i.e, November 26, 2022, was when the oil giant was given the license to operate in Venezuela&#8217;s oil sector. However, Trump did not mention the details of &#8220;electoral conditions.&#8221;



Chevron did not immediately respond to <a href="http://pro.benzinga.com">Benzinga&#8217;s</a> request for comment. 



<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="612" height="412" src="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/27034654/Screenshot-2025-02-27-141557.png" alt="" class="wp-image-801056" style="width:658px;height:auto" srcset="https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/27034654/Screenshot-2025-02-27-141557.png 612w,https://editorial-assets.benzinga.com/wp-content/uploads/2025/02/27034654/Screenshot-2025-02-27-141557-300x202.png 300w" sizes="(max-width: 612px) 100vw, 612px" /></figure>



The decision was met with disapproval from Delcy Rodriguez, Venezuelan Vice President, who deemed it a &#8220;damaging and inexplicable decision,&#8221; reported Reuters. Nevertheless, Marco Rubio, the U.S. Secretary of State defended the move, arguing it was designed to end all oil and gas licenses from the Biden-era that have &#8220;shamefully bankrolled the illegitimate Maduro regime.&#8221;



Chevron, which exports approximately 240,000 barrels of crude daily from its Venezuela operations, stated it has knowledge of Trump&#8217;s stance and was evaluating the implications of his decision. The termination of the license means that Chevron will no longer be permitted to export Venezuelan crude.



Since his January return to office, Trump has consistently stated that the U.S. does not require Venezuelan oil and hinted at the potential revocation of Chevron&#8217;s operating license. Trump announced that the oil concession agreement will be terminated effective March 1, instead of being renewed.



SEE ALSO: <a href="https://www.benzinga.com/news/25/02/43999592/mark-cuban-offers-support-to-elon-musk-but-only-if-tesla-ceo-backs-ro-khannas-anti-lobbying-bill">Mark Cuban Offers Support To Elon Musk—But Only If Tesla CEO Backs Ro Khanna&#8217;s Anti-Lobbying Bill</a>



Why It Matters: Chevron played a pivotal role in driving the growth of oil production and the economy in Venezuela. A Bloomberg report in January highlighted that Chevron submitted tax returns totaling approximately $300 million to the Venezuelan government last year, sparking concerns about the extent to which President Nicolás Maduro is profiting from the U.S. oil giant&#8217;s production despite sanctions.



Meanwhile, David Goldwyn, head of the energy advisory group at the Atlantic Council, previously told Bloomberg, "Chevron's activity in Venezuela is in both country's interests, as it's having an efficient player helping the Venezuela economy from falling back and preventing migrants from coming back." This is particularly notable as Trump has expressed discontent over the slow progress of the return of Venezuelan migrants back to their country. 



Oil prices inched higher on Thursday following declines in the past two sessions, as supply concerns re-emerged after Trump revoked Chevron&#8217;s license to operate in Venezuela. At 07:31 GMT, Brent crude futures had risen by 2 cents to $72.55 per barrel, while U.S. West Texas Intermediate (WTI) crude futures increased by 6 cents to $68.68 per barrel.



This decision comes on the heels of <a href="https://www.benzinga.com/markets/25/02/43685595/chevron-announces-about-20-workforce-reduction-in-cost-saving-initiative-responsible-leadership-requires-taking-these-steps">Chevron&#8217;s recent announcement</a> of a significant workforce reduction. Chevron planned to cut its workforce by up to 20% as part of a broader cost-saving initiative. The company aimed to reduce costs by $2 billion to $3 billion by the end of 2026. The termination of the Venezuelan license could potentially impact these cost-saving measures.



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<li>READ MORE: <a href="https://www.benzinga.com/markets/cryptocurrency/25/02/43990066/bitcoin-ethereum-xrp-dogecoin-extend-decline-btc-at-80000-by-mid-april-trader-wonders">Bitcoin, Ethereum, XRP, Dogecoin Extend Decline: &#8216;BTC At $80,000 By Mid-April?,&#8217; Trader Wonders</a></li>
</ul>



Image via Shutterstock



Disclaimer:&nbsp;This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Trump Shuts Down Chevron's Venezuela Oil Permit, Tightening Pressure On Maduro Regime: Crude Oil Prices Rise On Supply Concerns

U.S. stock futures rose on Thursday following yet another mixed close on Wednesday. Futures all four benchmark indices advanced in premarket trading.



Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) beat earnings expectations and Jensen Huang said that the chipmaker was successfully ramping up the massive-scale production of Blackwell AI supercomputers. Data center revenue hit a record level again in the fourth quarter.



Meanwhile, President Donald Trump stated that tariffs, including a 25% levy on automobiles, would be imposed on goods from the EU. Additionally, tariffs on goods from Mexico and Canada will commence on April 2nd.



The 10-year Treasury yield stood at 4.31%, while the two-year yield was at 4.11%. According to the CME Group's FedWatch <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html">tool</a>, there is a 97.5% chance that the Federal Reserve will keep interest rates unchanged for the March meeting. 



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Futures</td><td>Change (+/-)</td></tr><tr><td>Nasdaq 100</td><td>0.64%</td></tr><tr><td>S&amp;P 500</td><td>0.56%</td></tr><tr><td>Dow Jones</td><td>0.27%</td></tr><tr><td>Russell 2000</td><td>0.74%</td></tr></tbody></table></figure>



The SPDR S&amp;P 500 ETF Trust (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SPY#NYSE">SPY</a>) and Invesco QQQ Trust ETF (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/QQQ#NASDAQ">QQQ</a>), which track the S&amp;P 500 index and Nasdaq 100 index, respectively, rose in premarket on Thursday. SPY was up 0.55% to $597.80, and QQQ advanced 0.60% to $517.63, according to<a href="https://pro.benzinga.com/dashboard"> Benzinga Pro</a> data.



Cues From The Last Session



Information technology, utilities, communication services, and industrials were the only sectors that closed higher in trade on Wednesday, whereas consumer staples, health care, and real estate fell the most.



The stocks settled on a mixed note despite the S&amp;P 500 breaking its three-day losing streak as Dow Jones fell on Wednesday.



On the economic front, new home sales plummeted 10.5% in January to 657,000, according to the U.S. Census Bureau, signaling continued weakness in the 2025 housing market. This represents a 1.1% year-over-year decline.



Salesforce Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) reported a mixed quarter, whereas Snowflake Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNOW#NYSE">SNOW</a>) exceeded analyst expectations.



<figure class="wp-block-table is-style-stripes"><table style="overflow:auto; height: 90px; display: block;"><tbody><tr><td>Index</td><td>Performance (+/-)</td><td>Value</td></tr><tr><td>Nasdaq Composite</td><td>0.26%</td><td>19,075.26</td></tr><tr><td>S&amp;P 500</td><td>0.014%</td><td>5,956.06</td></tr><tr><td>Dow Jones</td><td>-0.43%</td><td>43,433.12</td></tr><tr><td>Russell 2000</td><td>0.19%</td><td>2,174.17</td></tr></tbody></table></figure>



Insights From Analysts



&#8220;This is still a bull market and this seasonal weakness doesn't have us overly concerned yet,&#8221; said Ryan Detrick, the chief market strategist at Carson Group in his note titled &#8216;That Escalated Quickly&#8217;.



He also highlighted a list of reasons substantiating the reasons for stocks to be back at new highs.



<ul>
<li>Strong earnings, revenue, and profit margins.</li>



<li>Market resilience amidst widespread concerns.</li>



<li>A relatively young bull market with potential for further growth. A robust labor market with healthy wages.</li>



<li>Anticipated inflation improvement and potential Fed rate cuts.</li>



<li>Strong U.S. productivity driving economic growth.</li>



<li>Broadening market participation beyond just tech stocks.</li>
</ul>



Similarly, the analysts at BlackRock said, &#8220;We still think U.S. equities can outperform in 2025, led by tech, even as Europe's start the year strong.&#8221;



However, they said that they would broaden the risk-on view, upgrading Europe stocks.



BlackRock&#8217;s note highlighted that the U.S. could still reclaim leadership this year and that is why they were overweight U.S. stocks. The corporate earnings strength and the artificial intelligence theme aided their belief. But the note stated, &#8220;We turn more underweight long-term U.S. Treasuries&#8221;



As Nvidia was trading 0.82% higher in premarket on Thursday after good earnings on Wednesday, CNBC&#8217;s Jim Cramer said that this was &#8220;a sign that no one knows how to value amazing earnings&#8221;.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="500" data-dnt="true">The tight trading in Nvidia is more of a sign that no one knows how to value amazing earnings than it is that there is something wrong.&mdash; Jim Cramer (@jimcramer) <a href="https://twitter.com/jimcramer/status/1895049690330136868?ref_src=twsrc%5Etfw">February 27, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



See Also: <a href="https://www.benzinga.com/money/how-to-trade-futures">How to Trade Futures </a>



Upcoming Economic Data



Here&#8217;s what investors will keep on Thursday:



<ul>
<li>Initial jobless claims data till the week ended Feb. 22, January's durable-goods orders data, and GDP's second reading will be announced at 8:30 a.m., ET.</li>
</ul>



<ul>
<li>Kansas City Fed President Jeff Schmid speaks will speak at 9:15 a.m., ET.</li>
</ul>



<ul>
<li>Pending home sales data for January will be out by 10:00 a.m., ET.</li>
</ul>



<ul>
<li>Fed Governor Michelle Bowman will speak at 11:45 a.m., ET.</li>
</ul>



<ul>
<li>Philadelphia Fed President Patrick Harker will speak at 3:15 p.m., ET.</li>
</ul>



Stocks In Focus:



<ul>
<li>JM Smucker Co. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SJM#NYSE">SJM</a>) rose 2.09% in the premarket on Thursday ahead of its earnings, which will be released before the opening bell. Analysts expect it to report earnings of $2.37 per share, with a revenue of $2.23 billion.</li>
</ul>



<ul>
<li>Hormel Foods Corp. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HRL#NYSE">HRL</a>) was up 1.29% as Wall Street expects it to report quarterly earnings of 38 cents per share on revenue of $2.94 billion before the opening bell.</li>
</ul>



<ul>
<li>Bath &amp; Body Works Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/BBWI#NYSE">BBWI</a>) jumped 2.48% as it was expected to release its fourth-quarter financial results before the opening bell. Analysts projected earnings at $2.04 per share on the revenue of $2.78 billion.</li>
</ul>



<ul>
<li>Dell Technologies Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/DELL#NYSE">DELL</a>) advanced 1.95% ahead of its earnings, which will be released after the closing bell. Analysts expect it to report earnings of $2.52 per share on revenue of $24.57 billion</li>
</ul>



<ul>
<li>HP Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/HPQ#NYSE">HPQ</a>) was 1.24% higher as Wall Street expects it to report quarterly earnings of 74 cents per share on revenue of $13.36 billion after the closing bell.</li>
</ul>



<ul>
<li>Nvidia Corp. (NASDAQ:<a class="ticker" href="https://www.benzinga.com/stock/NVDA#NASDAQ">NVDA</a>) gained 0.82% after it reported better-than-expected fourth-quarter and full-year results.</li>
</ul>



<ul>
<li>Salesforce Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/CRM#NYSE">CRM</a>) declined 4.67% after a mixed quarter and weak outlook for fiscal year 2026.</li>
</ul>



<ul>
<li>Snowflake Inc. (NYSE:<a class="ticker" href="https://www.benzinga.com/stock/SNOW#NYSE">SNOW</a>) climbed 10.85% after a strong quarter beating analyst expectations.</li>
</ul>



Commodities, Gold And Global Equity Markets:



Crude oil futures were trading higher in the early New York session by 1.01% to hover around $69.31 per barrel.



The gold spot index was down by 0.95% to $2,888.58 per ounce. Its last record high was at $2,956.37. The Dollar Index was up 0.20% at 106.631 level.



Asian markets were mixed on Thursday as Japan's Nikkei 225, China's CSI 300, and Australia's ASX 200 index advanced. Whereas, South Korea's Kospi and Hong Kong's Hang Seng index declined. European markets were mostly lower in trade.



Read Next:



<ul>
<li><a href="https://www.benzinga.com/general/market-summary/25/02/43998226/jensen-huangs-nvidia-fuels-ai-factory-boom-revenue-growth-in-data-center-business-dominates-peers-with-a-staggering-3460-growth-over-5-years">Jensen Huang&#8217;s Nvidia Fuels &#8216;AI Factory&#8217; Boom: Revenue Growth In Data Center Business Dominates Peers With A Staggering 3460% Growth Over 5 Years</a></li>
</ul>



Photo courtesy: Shutterstock

Pre-Market Outlook

BBWI

US Stocks Likely To Open Higher After Nvidia's Blowout Earnings: 'This Is Still A Bull Market,' Says Expert

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