Major Stocks Including Mondelez International, Stride, and Varonis Systems Decline in Wednesday's Pre-Market Trading
U.S. Stock Futures: U.S. stock futures showed mixed results, with Dow futures dropping approximately 100 points on Wednesday.
Mondelez International Earnings: Mondelez International's shares fell 5.8% in pre-market trading after the company lowered its FY2025 earnings guidance despite reporting quarterly earnings and sales that exceeded analyst expectations.
Other Stocks Declining: Several other companies, including Stride Inc, Varonis Systems Inc, and Akebia Therapeutics Inc, experienced significant declines in pre-market trading due to disappointing sales guidance or earnings reports.
Market Reactions: The overall market sentiment was negative, with multiple stocks, including Caesars Entertainment and Enphase Energy, also reporting earnings below estimates, contributing to their respective declines.
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- Board Investigation: Berger Montague PC is investigating Stride, Inc.'s Board of Directors for potential breaches of fiduciary duties, focusing on possible failures in governance and oversight that could impact the company's integrity.
- Shareholder Concerns: The investigation aims to assess whether the Board's public statements regarding Stride's operations and financial performance were misleading, which may affect shareholder confidence and investment decisions moving forward.
- Law Firm Background: Berger Montague is a leading law firm in complex civil litigation and class actions, having recovered over $50 billion for clients over its 55-year history, establishing a strong reputation in the legal field.
- Contact Information: Shareholders seeking more information about the investigation can contact Andrew Abramowitz or Caitlin Adorni at Berger Montague to ensure their rights are protected.
- Stock Purchase Overview: On January 5, 2026, Mullin disclosed purchases of 10 stocks, each ranging from $15,000 to $50,000, indicating his ongoing interest in small and mid-cap stocks, with most having market capitalizations below $20 billion.
- Small-Cap Characteristics: Notably, two of these stocks have market caps under $5 billion, reinforcing Mullin's preference for smaller stocks, which could influence his decisions on the Armed Services Committee, particularly regarding future government contracts.
- Historical Trade Review: Prior to this, on December 29, 2025, Mullin bought six of the Magnificent Seven stocks, investing at least $50,000, highlighting his preference for tech stocks, with Microsoft Corp (MSFT) being the largest investment.
- Potential Conflict of Interest: Given Mullin's role on the Armed Services Committee, Benzinga will closely monitor his future stock trades, especially concerning potential conflicts arising from military actions in countries like Venezuela.
- Board Investigation: Berger Montague is investigating Stride, Inc.'s Board of Directors for potential breaches of fiduciary duties, particularly regarding oversight of public statements about the company's operations and financial performance, which may harm shareholder interests.
- Shareholder Rights Protection: The investigation aims to safeguard the rights of Stride shareholders, who can contact Berger Montague for more information, highlighting the law firm's commitment to protecting investor interests.
- Education Technology Company Profile: Stride, Inc., headquartered in Reston, Virginia, focuses on providing online learning programs and curricula to schools and districts nationwide, underscoring its significance in the education technology sector.
- Law Firm Expertise: Berger Montague is a leading firm in complex civil litigation and class actions, having recovered over $50 billion for clients over 55 years, demonstrating its strong capabilities and influence in the legal field.
- Revenue Growth: Stride's revenue for Q2 FY2026 rose 7.5% year-over-year to $631.3 million, driven by a 7.8% increase in total enrollments to 248,500, with career learning enrollments surging 17.6% to 111,500, indicating a sustained demand for alternatives to traditional education models.
- Profitability Improvement: Adjusted EBITDA surged 17.2% to $188.1 million, demonstrating Stride's ability to enhance profitability while scaling operations, with adjusted earnings per share increasing 5.5% to $2.50, surpassing consensus estimates of $2.01.
- Stable Growth Forecast: Management anticipates full-year revenue between $2.480 billion and $2.555 billion for FY2026, with adjusted operating income projected at $485 million to $505 million, reflecting approximately 5% and 6% year-over-year growth, respectively, indicating a positive outlook for future growth.
- Positive Market Reaction: Following the earnings announcement, Stride's stock price surged 14.25%, closing at $10.32, reflecting strong investor confidence in the company's performance and future growth potential.
- Intel Stock Surge: Intel's stock rose over 11% following a DigiTimes report indicating that Nvidia will shift chip production to Intel by 2028, enhancing its competitive position in the semiconductor market.
- AT&T Profit Guidance Upgrade: AT&T's stock increased by 5% after raising its annual profit guidance, expecting free cash flow to exceed $21 billion in 2028, surpassing analysts' estimates of $19.61 billion, indicating robust financial health.
- Seagate Strong Earnings Boost: Seagate's stock soared 19% after reporting adjusted earnings of $3.11 per share, exceeding the expected $2.81, reflecting strong performance in the storage infrastructure sector.
- Stride Earnings Beat Expectations: Stride's stock surged 21% after reporting adjusted earnings of $2.50 per share, significantly above analysts' expectations of $2.01, showcasing strong demand in the virtual education market.











