Roku and Airbnb both reported better-than-expected fourth-quarter results
Notable outperformers this morning, Roku Inc (NASDAQ:ROKU) and Airbnb Inc (NASDAQ:ABNB) are surging after their fourth-quarter results beat expectations. Roku reported losses of 24 cents per share on revenue of $1.20 billion, compared to estimates of 44 cents per shares on $1.15 billion, while Airbnb's earnings of 73 cents per share on $2.48 billion in revenue surpassed the 58 cents per share and $2.42 billion anticipated by analysts.
At last glance, ROKU was up 15.5% at $100.29, and trading at 52-week highs as it heads for its best single-session gain since November 2023. Wells Fargo upgraded the stock to "overweight" from "equal weight" after the earnings event, while Pivotal Research raised its rating to "buy" from "hold." No fewer than 11 analysts lifted their price targets as well, including UBS to $90 from $73. Since the start of the year, the shares are already up 32.8%.
ABNB was last seen up 14.6% at $161.58, headed for its best day ever as it jumps to its highest levels since May. Goldman Sachs upgraded to "neutral" from "sell" and Gordon Haskett upgraded to "hold" from "sell," while Baird lifted its rating to "outperform" from "neutral," and several other analysts chimed in with price-target hikes. Since the start of 2025, the online vacation rental name is up 22.3%.
Naturally, options traders are targeting both stocks today. ROKU has seen 95,000 calls and 35,000 puts cross the tape -- 11 times its average daily options volume -- with new positions being sold to open at the most active weekly 2/14 100-strike call. ABNB has seen 102,000 calls and 46,000 puts exchanged -- 12 times the average daily volume -- with new positions being sold to open at the most popular, February 170 call.