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Kelly Cloonan2/11/25

Zillow slumps as high mortgage rates weigh on outlook for home sales

Zillow eclipsed analyst estimates in its most recent quarter, but a weak near-term outlook pushed shares down 6% in after-hours trading.

The real estate listings site reported fourth quarter revenue of $554 million after market close on Tuesday, marking a 17% year-over-year rise and topping estimates of $546 million according to analysts polled by Bloomberg.

Zillow also narrowed its quarterly loss to $52 million, down from $73 million the year prior. The site has historically struggled to turn a profit since going public, but expects that to change this year. The firm suffered an especially big loss when its home-flipping side hustle went south back in 2021, costing the company hundreds of millions of dollars and sending its stock cratering from all-time highs.

The stock has been in recovery mode in the last year, though, up 56% to reach levels last seen during the post-pandemic housing market boom, partially helped by strong enthusiasm for its growing rental business. The company seems keen to continue that growth, announcing a new partnership with Redfin to list its multifamily rental listings on the site starting in the spring. The agreement, announced alongside earnings on Tuesday, sent Redfin’s stock up 4% in after-hours trading.

But even so, home resales have remained near historical lows amid elevated mortgage rates — pressuring Zillow’s core business — with seemingly no quick recovery in sight. The company forecasted revenue between $575 million and $590 million for the first quarter, below analyst estimates of $600 million.

For the year, the company said it expects low to mid-teens revenue growth, in line with analyst estimates.

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Micron jumps as CFO says company has started HBM4 shipments ahead of schedule

Micron is surging on Wednesday after a key executive said the company is getting its next-generation memory chips into customers’ hands ahead of schedule.

“We have been in high-volume production on HBM4. We’ve commenced customer shipments of HBM4 and we see shipment volumes ramping successfully this calendar Q1,” Chief Financial Officer Mark Murphy said at a conference hosted by Wolfe Research. “This is a quarter earlier than we mentioned during our December earnings call.”

HBM4 refers to the newest edition of high-bandwidth memory chips.

Micron has arguably been the laggard in bringing these chips to market compared to peers SK Hynix and Samsung, which may have caused the company to miss out on some high-profile customers (namely, Nvidia). But demand for these components is so intense, and running ahead of production, that finding willing buyers shouldn’t be much of a challenge even at ever-escalating prices.

Murphy added that he sees supply-demand tightness for high-bandwidth memory chips persisting beyond calendar year 2026.

Software slump resumes after high-profile companies issue underwhelming outlooks

The nascent recovery in software stocks has become unglued thanks to negative news both foreign and domestic.

BAM Circus Festival Takes Place In Milan

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Max Knoblauch3h

Electric aircraft maker Beta surges as Amazon discloses 5.3% stake, Jefferies upgrades stock to “buy”

Beta Technologies, the electric aircraft maker that went public in November, is soaring in early Wednesday trading. The stock climbed before markets opened following an upgrade from Jefferies from “hold” to “buy” with a $30 price target, reflecting a nearly 80% climb from its price as of Tuesday’s close.

Jefferies believes Beta shares are attractive after recent risk-off trading — the stock is down 40% since the beginning of the year.

Also appearing to boost optimism in Beta is an SEC filing on Tuesday that indicated Amazon owns a 5.3% stake in the company. The stake isn’t new: Amazon was listed as a 5% or greater shareholder in Beta’s November IPO.

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Matt Phillips4h

Analysts give mixed reviews on Robinhood’s Q4 results

Robinhood Markets remained down in premarket trading after delivering Q4 results Tuesday that fell short of some of Wall Street’s expectations, partly due to a slide in crypto trading.

Here’s what analysts had to say about the print:

Barclays: “Q4 came in softer than expected as lower take rates in options and crypto impacted transaction revenues, and lower [securities] lending in particular impacted [net interest income].”

Mizuho: “Prediction Markets were strong, but overall mixed quarter.”

Piper Sandler: “Bottom line, despite these ST headwinds which we laid out in our note last week, our LT thesis remains intact. If you can stomach the volatility, HOOD is the best way to play secular growth in retail trading and the closest FinTech platform we’ve ever seen to achieving ‘super app’ status.”

Zack’s Investment Research: “Crypto trading revenue fell 38% year over year in Q4, and January data showed another 57% decline in app-based crypto volumes. Unfortunately, that’s not a seasonal blip, that’s a structural slowdown in one of Robinhood’s historically highest-margin engagement drivers.”

Citizens JMP: “Slight revenue shortfall for Robinhood Markets but better expense performance, broadening business contribution, and a full roadmap should support strong growth again in 2026; reiterate our Market Outperform rating.”

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Job growth crushes estimates in January, unemployment rate unexpectedly dips to 4.3%

The American labor market, ladies and gentlemen.

The January jobs report was a blockbuster, with nonfarm payrolls growth of 130,000.

Economists polled by Bloomberg expected nonfarm payroll growth of 65,000 for the month. Heading into this release, the event contracts trading closest to a coin flip were “above 50,000” and “above 60,000,” suggesting the masses were less optimistic than Wall Street.

(Event contracts are offered through Robinhood Derivatives, LLC — probabilities referenced or sourced from KalshiEx LLC or ForecastEx LLC.)

The unemployment rate dipped to 4.3%, while economists had anticipated it would hold steady at 4.4%.

The SPDR S&P 500 ETF extended gains in premarket trading following this release.

The employment gains were very narrowly focused on an industry basis: healthcare accounted for a whopping 123,500, or 95%, of the net job growth.

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