Stock index futures opened lower but reversed up slightly higher after January’s CPI report came in cooler than expected, easing some inflation concerns. Headline CPI rose +0.2% MoM and +2.4% YoY, both below consensus, while core CPI (excluding food and energy) met expectations at +0.3% MoM and +2.5% YoY. The data is meaningful as markets weigh the future path of interest rates, particularly with tariff-related inflation risks and Kevin Warsh’s policy stance coming into focus ahead of his tenure. For now, softer inflation offers some relief to rate-sensitive assets and helps steady sentiment.
Arista Up on Earnings Beat and Strong AI Demand
Arista Networks (ANET) is up over +8% in premarket trading after delivering a strong Q4 beat and upbeat guidance. Revenue rose +29% YoY to $2.5B, topping expectations, while EPS of $0.82 exceeded estimates as AI networking demand remained robust. Management highlighted continued momentum in cloud and campus expansion, with full-year revenue climbing +28.6% to $9B and cumulative shipments surpassing 150M ports. Looking ahead, ANET guided Q1 revenue to $2.6B, well above consensus, reinforcing confidence in sustained AI-driven growth despite slightly lower gross margin expectations.
Airbnb Jumps on Strong Bookings
Airbnb (ABNB) is up more than +5% in premarket trading after strong Q4 results, with gross bookings rising +16% and revenue up +12% to $2.8B, both ahead of expectations. While EPS of $0.56 missed due to a $90M tax expense, EBITDA climbed +3%, topping estimates. Looking ahead, the company guided Q1 revenue growth of +15%, with low-double-digit growth expected for FY26, though profitability is projected to remain stable as ABNB ramps investment in marketing, product, and AI integration.
DraftKings Drops as 2026 Outlook Disappoints
DraftKings (DKNG) is down over -15% in premarket trading after issuing FY26 revenue guidance of $6.5B to $6.9B, below the $7.3B consensus, overshadowing strong Q4 growth. Revenue rose +43% YoY to $2B, while monthly unique paying users were flat at 4.8M, though average revenue per user jumped +43% YoY to $143. Despite record profitability and management’s confidence entering 2026, investors focused on the softer full-year outlook, driving the sell-off.
Pinterest Plunges as Tariff Headwinds Weigh on Ad Spending
Pinterest (PINS) is down over -21% in premarket trading after posting a Q4 earnings miss and issuing weaker-than-expected Q1 guidance, citing tariff-related pressure on large retail advertisers. Revenue rose +14% YoY to $1.3B, roughly in line with expectations, but EPS of $0.67 fell short. Management warned headwinds could intensify in Europe and the U.K. in Q1. The company guided Q1 revenue to $951M to $971M, below consensus, as major retailers pulled back ad spending amid trade disruptions.
