DoorDash Reports Disappointing Q3 Earnings, Alongside elf Beauty, Duolingo, HubSpot, and Other Major Stocks Declining in Thursday's Pre-Market Trading
Mixed U.S. Stock Futures: U.S. stock futures showed mixed results, with Nasdaq futures up by 0.1% on Thursday.
DoorDash Financial Results: DoorDash's shares fell 10.5% in pre-market trading after reporting third-quarter earnings of 55 cents per share, missing estimates, despite revenue of $3.44 billion exceeding expectations.
Other Stocks Declining: Several companies, including ACV Auctions and Porch Group, saw significant declines in their stock prices due to lowered sales guidance and missed earnings estimates.
Wider Market Impact: Other notable declines included elf Beauty, Duolingo, and American Superconductor, all of which reported disappointing financial results, contributing to a generally negative pre-market trading environment.
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- Walmart's AI Strategy: Walmart is not investing heavily in artificial intelligence but is prepared to utilize AI tools developed by major tech companies.
- Collaboration with Big Tech: The retail giant is waiting to implement AI advancements that come from the significant research and development efforts of Big Tech firms.
- Put Option Appeal: The current bid for the $180.00 put option is $13.60, and if an investor sells this option, they commit to buying the stock at $180.00, effectively lowering their cost basis to $166.40, which is approximately a 1% discount from the current price of $182.18, making it attractive for those interested in DASH.
- Yield Potential: Should the put option expire worthless, it would yield a 7.56% return on the cash commitment, equating to an annualized yield of 60.01%, highlighting the strategy's potential appeal in the current market context.
- Call Option Returns: The $185.00 call option has a current bid of $12.65, and if an investor buys DASH shares at $182.18 and sells this call option, they could achieve an 8.49% total return if the stock is called away at expiration, showcasing the profit potential of this strategy.
- Risk Assessment: The $185.00 call option has a 48% chance of expiring worthless, allowing investors to retain both their shares and the premium collected, which further enhances their return potential.
- Significant Sales Growth: Costco's January sales rose 9.3% year-over-year, with same-store sales increasing by 7.1%, demonstrating the company's strong resilience in an uncertain market environment and further solidifying its leadership position in retail.
- Accelerated Digital Sales: Costco's digitally enabled sales surged 33.1% year-over-year in January, significantly up from 18.3% in December, indicating that the company's efforts to enhance digital engagement are yielding impressive results and improving the online shopping experience for customers.
- Membership Model Advantage: With a high proportion of sales from everyday essentials and a membership model, Costco has attracted consumers even amid market volatility, as evidenced by a 15% year-to-date stock price increase, reflecting investor confidence in its stable business model.
- Valuation Risk Warning: Despite Costco's strong business performance, its current price-to-earnings ratio of 53 may already price in expectations for robust earnings growth of 15%, prompting investors to be cautious of valuation risks that could lead to potential losses due to overvaluation.
- Strong Sales Growth: Costco's retail sales in January 2026 rose 9.3% year-over-year, with same-store sales increasing by 7.1%, demonstrating the company's ability to sustain growth in uncertain environments, which boosts investor confidence.
- Accelerated Digital Sales: Excluding gasoline prices and foreign exchange impacts, Costco's digital sales surged 33.1% year-over-year, significantly up from 18.3% in December, indicating the effectiveness of the company's digital engagement initiatives in driving overall revenue growth.
- Membership Model Advantage: Costco's membership model and high sales of everyday essentials enhance its competitiveness amid market volatility, with a 15% stock price increase in 2026 reflecting investor recognition of its stable business model, despite market risks.
- Valuation Risk Warning: Despite Costco's strong business performance, its current price-to-earnings ratio of 53 suggests a need for sustained 15% earnings growth, while actual growth in fiscal 2025 was only 10%, prompting investors to carefully assess valuation risks.
- Significant Investment: Nvidia's announcement of a $2 billion investment in CoreWeave, purchasing shares at approximately $87 each, represents a 6.5% discount from last Friday's closing price, resulting in a more than 10% surge in CoreWeave's stock, indicating strong market demand for AI infrastructure.
- Deepening Strategic Partnership: The collaboration between Nvidia and CoreWeave aims to meet the extraordinary demand for Nvidia's AI factories, with plans to build 5 gigawatts of AI factories by 2030, and this investment will accelerate that process, further solidifying Nvidia's leadership in the AI sector.
- Liquidity Crisis Concerns: While Nvidia's investment is seen as support for CoreWeave, critics note that CoreWeave may be facing cash flow shortages and debt burdens, suggesting that Nvidia's investment could be a move to mitigate the risk of its partner's potential bankruptcy.
- Market Outlook Analysis: As AI technology rapidly evolves, Nvidia's investment is not only a lifeline for CoreWeave but also a strategic positioning within the entire AI ecosystem, reflecting the company's forward-thinking approach in future market competition.
- Investment Scale: NVIDIA announced a $2 billion investment in CoreWeave, purchasing shares at approximately $87 each, reflecting a 6.5% discount from Friday's closing price, aimed at supporting CoreWeave's expansion of AI data center infrastructure to meet growing market demand.
- Market Reaction: Following the announcement, CoreWeave's shares surged over 10%, indicating a positive market response to NVIDIA's investment and reflecting investor optimism regarding the demand for AI infrastructure.
- Strategic Significance: NVIDIA's investment not only supports CoreWeave but also signifies its long-term strategic positioning in the AI sector, with plans to build 5 gigawatts of AI factories by 2030 to address future technological needs.
- Risk Consideration: While the investment is seen as a support for CoreWeave, analysts express concerns that NVIDIA may be overly reliant on CoreWeave financially, especially as it faces liquidity crises and debt pressures, which could impact NVIDIA's long-term investment returns.










