Market Volatility: Investors React to Bad News and Earnings Reports

This week, investors exhibited a sell-the-news attitude, reacting sharply to any signs of trouble. MarketBeat analysts were quick to analyze this trend and its implications for investors.

Admittedly, some of the news carried weight. Stocks, often priced for perfection, have little room for error; a single hint of bad news can lead to substantial declines. As a result, investor sentiment remains fragile, and market fluctuations may not stabilize until March. Investors should keep an eye on upcoming earnings reports from major retailers and inflation readings. The Personal Consumption Expenditures (PCE) index will be released on Friday, likely confirming persistent inflation concerns for consumers.

Articles by Jea Yu

A pivotal factor affecting stock performance this week was the U.S. Department of Justice (DOJ) opening an investigation into United Healthcare Group Inc. (NYSE: UNH) regarding its Medicare billing practices. The news impacted the entire healthcare sector, including Humana Inc. (NYSE: HUM). Despite this, Jea Yu reported earlier that investors remained bullish about Humana’s upcoming earnings, even amidst cautious guidance.

This year, beauty stocks have struggled, prompting Yu to examine the prospects of the top three beauty companies. He presented the argument that one may soon rebound, offering investors a potential opportunity.

In contrast, Dutch Bros Inc. (NYSE: BROS) has bucked the trend, rising over 200% in the last year as it undergoes significant growth. Yu provided insights into why this momentum is likely to continue through 2025.

Articles by Thomas Hughes

NVIDIA Corp. (NASDAQ: NVDA) is set to release its earnings report on February 26, and the MarketBeat team is focusing closely on this event. Thomas Hughes shared insights on analyst sentiments and strategies investors can adopt leading up to this report.

Hughes also reviewed Medtronic PLC (NYSE: MDT)’s earnings, noting that despite a recent stock decline, the firm’s solid fundamentals may enable a future rebound, even with cautious guidance.

Walmart Inc. (NYSE: WMT) serves as a key indicator for retail performance, and this earnings season could prove challenging. Their stock has dropped 6.5% following concerns related to the Trump administration’s tariff policies impacting growth. Hughes pointed out that any significant dips could present buying opportunities in light of the long-term outlook.

Articles by Sam Quirke

Amid overall market unrest, SoFi Technologies Inc. (NASDAQ: SOFI) emerged as a standout, with its stock rising 18% as investors reconsidered the recent sell-off following its earnings report, according to Sam Quirke.

Onlookers may be curious if Alphabet Inc. (NASDAQ: GOOGL) will follow suit. Following an impressive 40% gain since September 2024, the stock has seen declines. Quirke explored the reasons behind the selling and why this could pave the way for a savvy investment opportunity.

Quirke also detailed the current status of Tesla Inc. (NASDAQ: TSLA), which has faced a 25% drop in 2025. The stock remains a major point of contention, and Quirke presented arguments for both buying TSLA and reasons why some might wish to stay away.

Articles by Chris Markoch

Palantir Technologies Inc. (NASDAQ: PLTR) experienced a significant drop this week, leading investors to question if the bears have gained the upper hand. Chris Markoch analyzed the reasons for PLTR’s decline and discussed how market speculation may allow bears to sell an overvalued stock.

While technology stocks have generally thrived, a few exceptions exist within the so-called Magnificent 7. Markoch identified three stocks that could be part of a larger rotational trend.

Investors often monitor stocks nearing 52-week highs, as these can signal either a selling cue or a buying opportunity. This week, Markoch highlighted three stocks investors might consider chasing higher, even if they are at their 52-week peaks.

Articles by Ryan Hasson

NVIDIA’s influence continues as Ryan Hasson reported two stocks that gained significantly after NVIDIA announced investments in them. Nebius Group NV (NASDAQ: NBIS), a maker of AI-powered products, reached an all-time high, prompting interest from analysts and institutional investors, suggesting a promising future.

NVIDIA also invested in WeRide Inc. (NASDAQ: WRD), a Chinese company focused on autonomous driving technology. Its stock initially soared over 80% following the announcement but eventually pulled back as Hasson noted the company’s weak revenue poses short-term challenges.

Articles by Gabriel Osorio-Mazilli

Gabriel Osorio-Mazilli offered insight into whether NVIDIA represents a long-term investment or a trading opportunity, suggesting it fits both categories as anticipation builds for the upcoming earnings report.

Investors searching for high-growth stocks are eyeing Hims & Hers Health Inc. (NYSE: HIMS). Osorio-Mazilli examined the driving forces behind HIMS’ explosive growth and highlighted two potential catalysts that could further elevate the stock.

He also mentioned AMC Entertainment Holdings Inc. (NYSE: AMC), whose stock surged 20% after announcing plans to invest in Bitcoin. Nonetheless, he cautioned that this move does not fundamentally alter the company’s weak financial standing.

Articles by Leo Miller

Ray Dalio, though no longer managing Bridgewater’s day-to-day operations, still commands considerable attention. Investors were drawn to Leo Miller’s analysis of three companies that Bridgewater acquired in the fourth quarter of 2024.

Miller also delved into AppLovin Corp. (NASDAQ: APP), one of 2024’s top high-growth stocks, explaining its business model and future catalysts that could boost the stock price.

Share buybacks often accompany earnings reports and are generally favorable for long-term investors in large-cap firms. Miller pinpointed three major stocks recently announcing buybacks, affirming their commitment to rewarding shareholders.

Articles by Nathan Reiff

Gold has proven to be one of the strongest asset classes in 2025, but not everyone wants to hold physical gold. An alternative lies in investing in precious metal ETFs, and Nathan Reiff explored three of these ETFs that have demonstrated significant gains.

In the last two years, fund investors—especially in S&P 500 index ETFs—have seen impressive returns. Reiff spotlighted two of the best S&P 500 ETFs poised to benefit in a robust market.

Reiff also addressed Kyndryl Holdings Inc. (NYSE: KD) as a potential opportunity for those pursuing the next big AI investment. Recently, Kyndryl formed a partnership with a major cybersecurity firm, adding the possibility for price appreciation.

Articles by Sarah Horvath

The hype surrounding DeepSeek continues influencing market sentiment. Sarah Horvath discussed how investors will not be able to invest directly in DeepSeek, yet the introduction of its open-source LLM sparked interest in four Chinese AI-related stocks.

As inflation remains a pressing concern for investors in 2025, Horvath provided three stocks that might serve as a hedge against ongoing inflationary pressures.

Value investors seeking bargains in an overvalued market were advised to focus on stocks with low price-to-earnings (P/E) ratios. Horvath presented four technology stocks with low P/E ratios worth consideration.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.