• Inflation knowledge, Powell testimony, extra earnings will likely be in focus this week.
• Robinhood’s robust monetary well being, strong outlook, and bullish analyst sentiment make it a compelling purchase.
• Moderna’s shrinking income, anticipated losses, and weak monetary rating make it a inventory to promote.
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U.S. shares ended decrease on Friday as a damaging combine of stories associated to tariffs and inflation anxious merchants to shut out the week.
Friday’s losses left the foremost averages in damaging territory on the week. The 30-stock gave up 0.5%, the dipped 0.2% and the tech-heavy fell 0.5%.
Supply: Investing.com
The week forward is predicted to be one other eventful one as traders gauge the outlook for the financial system, inflation, and rates of interest.
On the financial calendar, most vital will likely be Wednesday’s U.S. shopper value inflation report for January, which might spark additional turmoil if it is available in greater than expectations. The CPI knowledge will likely be accompanied by the discharge of the newest figures on producer costs, which can assist fill out the inflation image, in addition to the January retail gross sales report.
In the meantime, the Fed’s charge view might turn into clearer when Chairman Jerome Powell delivers semiannual financial coverage testimony earlier than the Home Monetary Companies Committee on Tuesday and Wednesday.
Supply: Investing.com
Merchants now count on the U.S. central financial institution to chop rates of interest simply as soon as this yr, backing away from earlier bets on two charge cuts beginning in June, as per the Investing.com .
Elsewhere, the busy earnings season continues with experiences due from Cisco Programs (NASDAQ:), Shopify (NYSE:), Coinbase (NASDAQ:), Robinhood (NASDAQ:), AppLovin (NASDAQ:), Reddit (NYSE:), Palo Alto Networks (NASDAQ:), McDonald’s (NYSE:), Coca-Cola (NYSE:), Moderna (NASDAQ:), CVS Well being (NYSE:), Airbnb (NASDAQ:), and DoorDash (NASDAQ:).
No matter which route the market goes, under I spotlight one inventory more likely to be in demand and one other which might see recent draw back. Keep in mind although, my timeframe is only for the week forward, Monday, February 10 – Friday, February 14.
Inventory To Purchase: Robinhood
Robinhood, the commission-free buying and selling app standard with retail traders, is about to report its fourth quarter earnings replace after the closing bell on Wednesday at 4:05PM ET, and expectations are sky-high.
Market individuals predict a large swing in HOOD inventory after the print drops, in keeping with the choices market, with a attainable implied transfer of 12.4% in both route. In an indication of rising confidence, the corporate has obtained three upward revenue forecast revisions in latest days, with zero downward revisions.
Supply: InvestingPro
Analysts forecast earnings per share (EPS) of $0.52, representing a staggering improve from a revenue of $0.03 within the year-ago interval. Income is projected to just about double year-over-year to $951.8 million as Robinhood continues to broaden its consumer base and capitalize on renewed momentum in crypto and fairness buying and selling.
The corporate has positioned itself as a pacesetter within the retail investing house, benefiting from rising curiosity in inventory and crypto buying and selling. Robinhood’s improved operational effectivity and cost-cutting measures have additionally enhanced profitability.
Furthermore, the retail brokerage agency has made strides in diversifying its income streams, significantly by its rising choices buying and selling and subscription-based merchandise. 
Supply: Investing.com
Shares of Robinhood have been on a tear, hitting a collection of report highs in latest periods. HOOD closed at $55.86 on Friday, incomes the corporate a valuation of $49.4 billion. The inventory is up 50% thus far in 2025, as optimism builds round its capacity to learn from a resurgent retail buying and selling wave.
Moreover, Robinhood demonstrates spectacular monetary well being, boasting an InvestingPro Well being Rating of three.2 out of 5.0 (“Nice”), which displays a powerful steadiness sheet, enhancing money circulate and environment friendly operations.
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Inventory To Promote: Moderna
Alternatively, Moderna is dealing with vital headwinds heading into its This fall earnings report, scheduled for launch later this week. The outcomes are due forward of Friday’s opening bell at 6:35AM ET and the anticipated transfer is about 11% up or down.
The as soon as high-flying vaccine maker is combating declining demand for its COVID-19 photographs, and analysts count on a disappointing quarter forward amid considerations over weakening income progress, heavy R&D spending, and an absence of diversification. Within the three months main as much as the earnings replace, analysts have slashed their EPS estimates 12 occasions, in comparison with zero upward revisions.
Supply: InvestingPro
Moderna is predicted to submit a This fall lack of -$2.70 per share, a pointy reversal from the $0.55 revenue recorded a yr in the past. Income is predicted to plummet virtually 70% year-over-year to $951.1 million.
The biotech firm is now dealing with income progress challenges with restricted near-term catalysts to offset declining demand as vaccine gross sales proceed to say no.
Moderna’s non-COVID pipeline presents little near-term aid. Its experimental flu and RSV vaccines lag behind established gamers, leaving it overly reliant on a shrinking market.
Supply: Investing.com
MRNA inventory ended Friday’s session at $32.60, not removed from a latest 52-week low of $31.94, which was the weakest stage since April 2020. At its present valuation, Moderna has a market cap of $12.5 billion. Shares, that are buying and selling under their key shifting averages, are down 21.6% to begin the brand new yr.
Moreover, Moderna holds a below-average InvestingPro Monetary Well being Rating of two.1 out of 5.0, reflecting considerations about weak income efficiency and slowing progress prospects.
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Disclosure: On the time of writing, I’m lengthy on the S&P 500, and the by way of the SPDR® S&P 500 ETF (SPY), and the Invesco QQQ Belief ETF (QQQ). I’m additionally lengthy on the Invesco High QQQ ETF (QBIG), Invesco S&P 500 Equal Weight ETF (RSP), and VanEck Vectors Semiconductor ETF (SMH).
I usually rebalance my portfolio of particular person shares and ETFs primarily based on ongoing danger evaluation of each the macroeconomic atmosphere and firms’ financials.
The views mentioned on this article are solely the opinion of the writer and shouldn’t be taken as funding recommendation.
Comply with Jesse Cohen on X/Twitter @JesseCohenInv for extra inventory market evaluation and perception.
