Earnings

Axon Enterprises’ stock surged over 17% after a strong Q4 earnings report, beating Wall Street expectations. The company’s software, particularly AI-integrated products like body camera assistants and license plate recognition, drove significant growth. Axon anticipates software to soon outpace hardware, projecting substantial revenue increases and ambitious 2028 targets. CEO Rick Smith highlighted AI as a pivotal, unprecedented opportunity for the company.

Nvidia is poised for another strong earnings report, driven by soaring demand for AI infrastructure. Analysts expect continued revenue growth, fueled by major cloud providers’ significant investments in AI. Nvidia’s dominance in AI chips, particularly its GPUs, makes it a key beneficiary of the AI boom. Investors will watch gross margins closely, given the memory chip shortage, and Nvidia’s ability to manage these costs will be a key indicator of its strength.

RingCentral and Five9 shares surged following strong earnings reports that assuaged investor fears about AI disruption. Both cloud communications firms specializing in customer engagement reported robust financial results and optimistic guidance. RingCentral’s stock jumped 34% as AI became a tailwind, doubling ARR from AI-enhanced features. Five9’s stock rose 14% with AI bookings more than doubling and its AI portfolio reaching $100 million ARR. These companies demonstrate a successful integration of AI, suggesting adaptation rather than obsolescence in the evolving software sector.

Figma’s stock jumped 15% after reporting Q4 earnings, ultimately closing up 7%. The design software maker exceeded revenue expectations with $303.8 million, a 40% year-over-year increase, though it posted a net loss. For Q1, Figma forecasts revenue of $315-317 million, exceeding analyst estimates. Analysts remain optimistic about Figma’s AI integration and growth drivers, despite broader market concerns surrounding AI’s disruptive potential. The company’s partnership with Anthropic further solidifies its position in the evolving AI landscape.

DoorDash stock rallied Thursday despite a Q4 earnings miss, as investors focused on early signs of strategic gains from aggressive investments. While initial results and near-term guidance disappointed, analysts viewed the spending as a precursor to future growth and efficiency. Positive trends in core and new segments, alongside successful subscriber growth and the Deliveroo acquisition’s global market expansion, appeased investor concerns, driving the stock’s rebound.

Cadence Design Systems’ stock rose over 6% after reporting Q4 earnings that beat expectations. The electronic design automation (EDA) software provider saw revenue and adjusted earnings per share increase by 6% year-over-year. CEO Anirudh Devgan highlighted that 45% of revenue now comes from “system companies” like hyperscale cloud providers and smartphone/automotive manufacturers. This trend is driven by system companies optimizing hardware and software through custom chip design, a boom amplified by AI investments. Cadence anticipates continued growth, projecting $5.9-6 billion in revenue for the upcoming fiscal year.

Figma’s stock soared 15% on strong Q4 earnings and optimistic future guidance, exceeding analyst expectations. The design software company reported substantial revenue growth and highlighted increasing adoption of its AI-powered Figma Make tool. Strategic AI cost optimization and new monetization plans, alongside a partnership with ServiceNow, position Figma for continued expansion and market leadership despite broader industry AI concerns.

DoorDash shares surged 14% after hours despite Q4 earnings missing estimates. While revenue and order volume showed strong year-over-year growth, investors are wary of significant investments in a unified global technology platform and autonomous delivery. CEO Tony Xu remains confident in the long-term strategy, citing positive early results from Deliveroo integration and a focus on enhanced user experience. The company’s cautious Q1 guidance and substantial spending plans continue to be a point of concern.

Stock futures are down as investors weigh AI’s broad market impact, with sectors from real estate to logistics feeling the pressure. Tech giants like Cisco and Apple saw significant drops. Eyes are now on the crucial January CPI report for inflation clues. Earnings provided mixed signals, with Pinterest disappointing and Instacart soaring. Meanwhile, a climate policy reversal and record NBA team valuations also made headlines.

Pinterest’s stock plummeted nearly 17% following a Q4 earnings report that missed revenue and profit expectations. The company cited tariff impacts and reduced ad spending from major retailers as key concerns. Despite this, Pinterest is doubling down on AI, planning workforce reductions and office downsizing to reallocate resources. While analysts expressed mixed views, the platform’s strong user growth, especially among Gen Z, offers a foundation for future monetization strategies driven by AI advancements.