After Hours Summary: AMZN -9.9%, DOCS -37.7%, MOH -33.3%, PI -23.9%, TEAM -6% lower on earnings; RBLX +17.8%, EHC +17.5%, NVST +11.4%, GEN +8.9%, DAVE +8.4%, BE +7.6%, ADPT +4.9%, RDDT +3.8% higher on earnings;
After Hours Gainers:
Companies trading higher in after hours in reaction to earnings/guidance: RBLX +17.8%, EHC +17.5%, NVST +11.4%, GEN +8.9%, DAVE +8.4%, BE +7.6%, ADPT +4.9%, RDDT +3.8% (also authorizes new $1 bln share repurchase program), GOLD +3.3% (also $150 mln strategic investment from Tether), VTR +2.8%, DLR +2.5%, FLS +2.5% (also to acquire Trillium Flow's valves unit for $490 mln), MPWR +2.2% (also CFO to retire), G +2.1% (also increases dividend), FTNT +2% (also increases share repurchase authorization by $1 bln), REG +2%, LION +1.9%, OTEX +1.4%, WMG +1.1%, VSAT +0.7%, COUR +0.3%, ARW +0.1%, NWSA +0.1%
Companies trading higher in after hours in reaction to news: STGW +2.1% (to acquire digital advertising company), LUMN +1.4% (CEO bought 78685 shares worth ~$500K), JCI +0.7% (files mixed securities shelf offering), SPG +0.4% (authorizes new $2 bln share repurchase program)
After Hours Losers:
Companies trading lower in after hours in reaction to earnings/guidance: DOCS -37.7% (also authorizes new $500 mln share repurchase program), MOH -33.3%, ASYS -31.1%, IREN -24% (also $3.6bn GPU financing secured for Microsoft contract), PI -23.9%, RBBN -20.2%, COTY -19.3%, AOSL -17.6%, WERN -12.3%, CLSK -10.7%, POWI -10.6% (also announces restructuring), AMZN -9.9% (also to invest $200 bln in cap-ex across Amazon in 2026, seen as a negative), ILMN -8.1%, HUBG -7.8% (to restate certain financial statements), MCHP -6.8%, TEAM -6%, UNM -5.8%, AFRM -5.6% (also expands partnership with Wayfair), PCTY -3.3%, QLYS -3.1% (also increases share repurchase authorization by $200 mln), MGM -2.8%, SYNA -2.6%, BYRN -1.6%, CPT -1.2%, MSTR -0.6%, ARWR -0.3%, ATRO -0.2%, BYD -0.1%
Companies trading lower in after hours in reaction to news: PHM -2% (files mixed securities shelf offering), SWKS -2% (SWKS and QRVO each receive FTC request for additional info re merger), WPM -1.6% (names new CEO), QRVO -1.5% (SWKS and QRVO each receive FTC request for additional info re merger), W -0.4% (Affirm expands partnership with Wayfair), FDX -0.3% (collaboration with Dun & Bradstreet to create new data and analytics offering), KKR -0.2% (new partnership under which KKR funds will invest in HMC's Energy Transition Platform)
Coty misses by $0.04, beats on revs (3.15 -0.28)
- Reports Q2 (Dec) earnings of $0.14 per share, excluding non-recurring items, $0.04 worse than the FactSet Consensus of $0.18; revenues rose 0.5% year/year to $1.68 bln vs the $1.66 bln FactSet Consensus.
- Given the complex beauty market backdrop and Coty's leadership transition, the company is withdrawing its prior FY26 guidance for EBITDA and free cash flow, and is providing guidance solely for Q3.
- Coty expects LFL Q3 revenues to decline by a mid-single-digit percentage, primarily due to weakening in Consumer Beauty sales trends.
- In Prestige, Coty estimates the fragrance market will grow at a low-to-mid-single-digit rate, which is consistent with Q2 levels and in line with the broader beauty market. While the estimated headwinds from retailer destocking significantly reduced in Q2, the promotional environment intensified through the holiday period and remains elevated across the category, representing a headwind to Coty's net sales performance and by extension, gross margin.
- In Consumer Beauty, the Company estimates the mass beauty category will be flattish to up low-single-digits.
- Coty anticipates Q3 gross margins to decline by 200 to 300 basis points year-on-year, consistent with Q2 trends.
Amazon misses by $0.02, reports revs in-line; guides Q1 revs in-line; to invest about $200 bln in cap-ex across Amazon in 2026 (222.69 -10.30)
- Reports Q4 (Dec) GAAP earnings of $1.95 per share, $0.02 worse than the FactSet Consensus of $1.97; revenues rose 13.6% year/year to $213.39 bln vs the $211.44 bln FactSet Consensus.
- North America segment sales increased 10% yr/yr to $127.1 bln.
- International segment sales increased 17% yr/yr (+11% CC) to $50.7 bln.
- AWS segment sales increased 24% yr/yr to $35.6 bln.
- Q4 adjusted operating income of $27.4 bln vs prior guidance of $21-26 bln.
- Co issues in-line guidance for Q1, sees Q1 revs of $173.50-178.50 bln vs. $175.62 bln FactSet Consensus. Co guides to Q1 operating income of $16.5-21.5 bln.
- "AWS growing 24% (our fastest growth in 13 quarters), Advertising growing 22%, Stores growing briskly across North America and International, our chips business growing triple digit percentages year-over-year—this growth is happening because we're continuing to innovate at a rapid rate, and identify and knock down customer problems," said Andy Jassy, President and CEO, Amazon.
- "With such strong demand for our existing offerings and seminal opportunities like AI, chips, robotics, and low earth orbit satellites, we expect to invest about $200 billion in capital expenditures across Amazon in 2026, and anticipate strong long-term return on invested capital."
- Co says it expects to invest about $200 mln in capital expenditures across Amazon in 2026, and anticipates strong long-term return on invested capital.
Q4 2025 Earnings Call Guidance
- Q1 2026 net sales expected between $173.5B and $178.5B; guidance anticipates a favorable FX impact of approximately 180 bps.
- Q1 2026 operating income expected between $16.5B and $21.5B.
- Within North America segment, expected YOY cost increase of approximately $1B in Q1 2026 related to Amazon Leo, driven by higher satellite launch spending.
- Amazon Leo: more than 20 launches planned in 2026 and more than 30 in 2027; select enterprise customers testing services now; wider commercial rollout expected later in 2026.
- Amazon Leo accounting: many costs such as satellite manufacturing and launch services expected to be capitalized later in 2026 (currently mostly expensed as incurred).
- International segment: continued incremental investment in stores to enhance customer experience and accelerate online retail adoption, including expansion of ultra-fast “Amazon Now” 30-minute delivery; management expects these investments to “generate long-term positive return on invested capital.”
- Capital expenditures: Amazon expects to invest about $200B in capital expenditures across the company, predominantly in AWS, citing “very high demand” and monetizing capacity “as fast as we can install it.”
- Trainium3: up to 40% more price performance than Trainium2; Amazon expects nearly all Trainium3 chip supply to be committed by mid-2026.
- Amazon Leo commercial launch expected in 2026.
- Whole Foods Market: plan to open more than 100 new stores over the next few years.
- Same-day perishables: plan to expand same-day perishable grocery delivery to many more US communities in 2026.
- FactSet Q1 2026 revenue consensus is $175.62 bln.
Nvidia to Delay New Gaming Chip Due to Memory Chip Shortage
The Takeaway
- Nvidia won’t release a new graphics chip for gamers in 2026
- It’s the first time in 30 years it won’t release one in the calendar year
- Decision follows a global memory shortage stemming from AI server boom
Nvidia won’t release a new graphics chip for gamers this year due to a deepening global shortage of memory chips, prompted by the AI boom, according to two people with direct knowledge of the matter.
It would be the first year in three decades that Nvidia hasn’t released a new graphics processing unit for gaming. Nvidia got its start in the early 1990s by designing graphics chips for videogames and consoles before it expanded into high-performance AI computing chips in the early 2010s.
Memory chips are a key component of GPUs, which are widely used both in servers for AI and in computers for gaming. Nvidia is prioritizing using its limited supply of memory chips to fulfill demand for AI chips.
Nvidia is also slashing production of its current line of gaming chips—the GeForce RTX 50 GPUs—because of the memory shortage, one of the people said. Prices of Nvidia’s latest gaming GPUs have already risen at retail stores and websites due to their scarcity over the past year.
“Demand for GeForce RTX GPUs is strong, and memory supply is constrained,” an Nvidia spokesperson said in a statement, without commenting on the delay. Nvidia continues to ship all GeForce products and is working closely with its suppliers to maximize memory availability, the spokesperson added in the statement.
It’s possible, to be sure, that Nvidia executives could still change their minds and release a gaming chip if the market improves as the company is known for being flexible and moving quickly.
Demand for computer memory chips has skyrocketed due to the AI boom, as they are needed in large quantities to train and operate machine-learning models. Memory chips act as a warehouse for storing data, while the processors that accompany them act as the brain computing this data. They’re used in a wide range of consumer electronics, including smartphones and laptops, as well as server chips.
The memory chip shortage is expected to lead to higher prices for consumer electronics. Last week, Apple CEO Tim Cook said the rising prices of memory chips would have an impact on the company’s March-quarter margins. He hinted that the impact would be greater in the future, noting, “We do continue to see market pricing for memory increasing significantly. As always, we’ll look at a range of options to deal with that.”
Gaming and AI chips use different types of memory, but both are made of the same raw materials, coming from one of three main suppliers, Samsung Electronics, SK Hynix and Micron Technology. These manufacturers can’t easily boost production, as building new factories can take years.
Nvidia typically releases a new gaming GPU based on a major new chip redesign every other year, issuing a more incremental redesign with greater memory and processing capabilities in alternate years. The company this year had scheduled the release of an incremental update, code-named Kicker, to last year’s RTX 50 line of GPUs, and it had completed the new design, the two people said.
But in December, Nvidia managers changed plans, telling employees and suppliers the company was delaying Kicker, without offering a new timeline. Nvidia managers said one reason was due to the global memory shortages, which have pushed up prices, and the need to prioritize memory production for the company’s AI chip business, according to the two individuals.
The delay will also push back the release of Nvidia’s next-generation gaming GPU. Likely called the RTX 60 series, it was originally scheduled to begin mass production at the end of 2027, according to one of the people.
The existing line of gaming GPUs, the RTX 50, is based on Nvidia’s current Blackwell GPUs, while the RTX 60 is based on the upcoming Rubin chips. Nvidia CEO Jensen Huang publicly announced last month that mass production of Rubin AI chips had already started and that the company was on track to ship them to customers in the second half of this year.
Nvidia’s gaming business is still performing well. Its most powerful gaming GPU, the RTX 5090, has been consistently sold out since its release in January 2025. The company also isn’t facing much competition from its main rival, AMD, which means it can afford to wait to refresh its gaming hardware.
AMD executives have said they are focused on developing gaming GPUs with midrange performance that offer better value for money. As a result, AMD doesn’t have a comparable high-end gaming GPU due for release in the near future that directly competes with Nvidia’s GTX 50 series.
As AI chips have taken off, the importance of gaming chips to Nvidia’s bottom line has dwindled significantly. Revenue from its gaming GPUs comprised roughly 8% of its total revenue in the nine months to October, compared with 35% in the same period in 2022, before the release of OpenAI’s ChatGPT, which kicked off the AI boom.
Operating margins for Nvidia’s AI chips are much higher than those for its gaming GPUs. In the nine months to October, the margins for Nvidia’s compute and networking business, which includes AI chips, stood at 65%, compared with 40% for its graphics business, which includes gaming GPUs.
Gamers aren’t the only ones who might be disappointed by the absence of a new Nvidia gaming GPU this year. Because of U.S. export controls on Nvidia’s most-advanced AI chips, universities, tech startups and the technology departments of state-owned enterprises in China have been buying up Nvidia’s latest gaming GPUs to train and run AI models, The Information reported last year.
Gapping down
In reaction to earnings/guidance:
In reaction to earnings/guidance:
- FLNC -17.2%, CRNC -16%, WOLF -13.3%, RAL -13%, QCOM -12.3%, KMPR -11.7%, EL -11.3%, PTON -11.2%, OMCL -10.4%, DGII -9.8%, VOD -9%, CENT -7.4%, FMC -7% (also authorizes exploration of strategic options), CCI -6.6%, CARR -6.6%, ARM -6.1%, ARM -6.1%, COHR -6.1%, ROK -4.6%, UHAL -4.5%, GOOS -4.3%, UGI -4.1% (also appoints new Chief Strategy Officer), HP -3.9%, GOOG -3.2%, ASX -2.6%, TTMI -2.4%, KKR -2.3%, NOV -2.1%, VCTR -2.1%, CCK -2%, SONY -1.9%, ABG -1.8%, REXR -1.7%, SHEL -1.6%, BCE -1.5%, PLUS -1.3%, MTRX -1.2% (also announces CEO transition), ORLY -1.1%, LIN -1.1%, B -1.1%, STE -1%
Other news:
- BNC -6.7% (YZi Labs Management Ltd. responds to CEA Industries statement)
- SVM -5.2% (project update for El Domo)
- HIVE -4.4% (reports January bitcoin production and hashrate growth)
- NEGG -2% (appoints new Board member)
- ABG -1.8% (appoints new Board member)
- USAU -1.3% (stock offering by selling shareholders)
- NUAI -0.9% (stock offering by selling shareholders)
Gapping up
In reaction to earnings/guidance:
In reaction to earnings/guidance:
- AMSC +17.9%, SITM +13.4% (also to acquire Renesas' Timing Business), ALGN +11.6%, TENB +10.5%, FORM +10.1%, NIO +10.1% (guidance), LQDT +9.8%, KLIC +8.6%, EZPW +8.4%, NTGR +7.7%, BLBD +7.2%, SYM +6.7%, THR +6.2%, PAHC +6.1%, TPR +6.1%, SIRI +6.1%, CPAY +5.8%, PTC +5.7%, ELF +5.7%, MCFT +5.5%, TRI +4.6%, BMY +4.1%, HSY +3.9%, BOOT +3.8%, CMP +3.8%, DHT +3.6%, OCUL +3.3%, MC +3.1%, SNEX +3.1%, RRX +2.9%, WMS +2.9%, TW +2.8%, SPB +2.3%, CAH +2.3%, SNAP +2.2%, MT +2.1%, ENR +2%, CLB +1.9%, GPRE +1.6%, MKL +1.5%, MCK +1.4%, MCK +1.4%, ALL +1.4% (also increases dividend; plans new buyback program), UTI +1.3%, PTEN +1.3% (also increases dividend), OMF +1.3%, BKE +1.3% (sales), OHI +1.2%, CSGS +1.2%, LSPD +1.1%, CI +1%
Other news:
- AVGO +4% (in sympathy with Alphabet's (GOOG/GOOGL) CapEx spending plans)
- ALXO +11.9% (venBio confirms the purchase of 3,184,713 shares worth approximately $5 mln)
- EMPD +6.4% (Shareholder calls for leadership overhaul at Empery Digital)
- BIDU +4.8% (approves $5 bln buyback and initiates dividend policy)
- ALVO +3.7% (reports Top-Line Results from Pivotal Pharmacokinetic Study for Proposed Biosimilar to Entyvio)
- GENI +3.3% (enters into definitive agreement to acquire Legend, creating a digital sports and gaming media powerhouse; raises FY25 revenue guidance)
- CARS +3.2% (new partnership with Salesforce (CRM) and Del Grande Dealer Group)
- DDL +3.1% (agrees to sell China operations to Meituan subsidiary)
- CLS +3% (in sympathy with Alphabet's (GOOG/GOOGL) CapEx spending plans)
- EVTL +1.6% (signs MoU with JetSetGo for proposed Valo aircraft order in India; selects Evolito as electric propulsion partner for Valo)
- MDLZ +1.3% (files mixed securities shelf offering)
- COST +1.3% (reports January comps)
- APH +1.2% (appoints CEO to additional role of Chairman)
- RUM +1.2% (unveils Rumble Shorts)
- CIEN +1% (to join S&P 500)
- LITE +1% (in sympathy with Alphabet's (GOOG/GOOGL) CapEx spending plans)
- NDAQ +0.9% (reports January volumes)
Peloton misses by $0.04, misses on revs; guides FY26 revs below consensus, raises adjusted EBITDA outlook (5.91 +0.19)
- Reports Q2 (Dec) loss of $0.09 per share, $0.04 worse than the FactSet Consensus of ($0.05); revenues fell 2.5% year/year to $657 mln vs the $675.55 mln FactSet Consensus.
- Adjusted EBITDA was $81 million, an increase of $23 million or 39% year-over-year and $6 million above the high end of our guidance range.
- Ending Paid Connected Fitness Subscriptions were 2.661 million, a decrease of 214,000 or 7% year-over-year and 6,000 above the midpoint of our guidance range. We observed better-than-expected Average Net
- Monthly Paid Connected Fitness Subscription Churn following Membership price increases announced on October 1, which was partially offset by lower gross additions.
- Co issues downside guidance for FY26, sees FY26 revs of $2.40-$2.44 bln vs. $2.48 bln FactSet Consensus. Sees total Gross Margin of approximately 53.0%, reflecting an increase of 210 bps year-over-year and a 100 bps increase to our outlook provided last quarter. Adjusted EBITDA outlook of $450 million to $500 million, representing an increase of $71 million or 18% year-over-year at the midpoint and an increase of $25 million to our outlook provided last quarter.
Early premarket gappers
-
Gapping up:
- AMSC +16.7%, ALXO +12.9%, SITM +12.4%, ALGN +10.9%, FORM +10.2%, SYM +9.9%, NIO +9.9%, KLIC +9.6%, CPAY +8.9%, NTGR +8.3%, TENB +7.9%, EZPW +7.5%, ELF +6.5%, SNAP +6.3%, PTC +5.7%, BIDU +5.4%, PAHC +5%, CLS +4.7%, SNEX +3.9%, DHT +3.8%, BOOT +3.8%, CMP +3.8%, DDL +3.7%, ALVO +3.5%, GENI +3.3%, PTEN +3.3%, CARS +3.2%, MC +3.1%, ARWR +3%, RRX +2.9%, LITE +2.5%, GBDC +2.1%, MT +2.1%, OHI +2%, APH +1.9%, CLB +1.9%, CIEN +1.6%, EQH +1.6%, NVDA +1.5%, COST +1.3%, CSGS +1.2%, CI +1.2%, ALGT +1.1%, MWA +0.9%, NDAQ +0.8%
-
Gapping down:
- CRNC -18.7%, FLNC -16.7%, WOLF -14.7%, KMPR -14.3%, QCOM -11.8%, RAL -11.2%, EL -10.5%, CARR -9.9%, VOD -8.3%, ARM -7.9%, ARM -7.9%, CENT -7.4%, BNC -6.7%, DGII -5.7%, FMC -5.7%, CCI -5.5%, HP -5.1%, COHR -5%, UHAL -4.5%, SVM -4.4%, UGI -4.1%, GOOG -3.3%, ASGN -3.2%, ASX -3%, REXR -2.8%, ORLY -2.5%, HIVE -2.2%, LPG -2.2%, XEL -2.2%, AFL -2.1%, VCTR -2.1%, SONY -2.1%, NEGG -2%, NOV -2%, GBX -1.9%, CCK -1.9%, SHEL -1.7%, LIN -1.7%, UMC -1.6%, ARES -1.6%, TTMI -1.3%, PLUS -1.3%, BKH -1.3%, MTRX -1.2%, ESS -1.1%, TU -1%, STE -1%