Feb 13, 2026 Market Update: Stocks Suffer Worst Week of the Year Despite Positive Inflation and Job Data – What You Need to Know

Pinterest’s stock took a big hit recently, falling nearly 20% after the company reported disappointing earnings. The social media platform cited that tariffs are affecting its ad clients more than expected. CEO Bill Ready explained that these tariffs are hitting ad spending from major retail clients, which is key for Pinterest’s revenue.

In the fourth quarter, Pinterest announced earnings per share of 67 cents and revenue of $1.32 billion, both slightly below what analysts had predicted. Analysts from JPMorgan and Bank of America responded by downgrading the stock to a neutral rating, warning that the issue might get worse in the coming months.

While Pinterest struggles, other social media companies like Snap and Meta are seeing minimal impacts from its troubles, although their shares also dipped briefly. Overall, Pinterest shares have lost over 40% of their value since the beginning of the year, and over 60% in the past year.

Shifting focus, DraftKings also faced challenges. Shares fell 13% after the sports betting company projected lower-than-expected revenue for the year, despite reporting a 43% revenue increase in the fourth quarter. Bank of America noted the growing popularity of prediction markets, which could threaten traditional sportsbooks.

Meanwhile, Coinbase remains bullish on Bitcoin, recently announcing plans to purchase more Bitcoin and its own stock. While Bitcoin has struggled to break past $70,000, Coinbase’s shares rose by 18%. Experts, however, caution that this uptick may not last due to an overall lack of new buyers in the market.

On a positive note, Arista Networks saw a stock increase after reporting strong earnings and a favorable outlook. The company posted a staggering 29% revenue growth in the fourth quarter and expects continued success in its AI-focused business.

Rivian also attracted attention. Its stock soared by 25% on reports of an upcoming SUV launch and solid fourth-quarter results. The company aims to deliver between 62,000 and 67,000 vehicles in 2026, a substantial rise from the previous year.

In chip manufacturing, Applied Materials experienced a stock jump due to soaring profits led by AI chip demand. CEO Gary Dickerson indicated that the company expects strong growth in the semiconductor equipment sector this year.

Meanwhile, Apple is facing difficulties with its stock declining by 5% amid concerns about its AI capabilities and regulatory scrutiny. This dip comes after the company had a brief surge following strong holiday quarter results.

Lastly, recent inflation data suggests some relief for the Federal Reserve. Analysts are predicting that softer inflation might influence the Fed’s decisions regarding interest rates in the coming months, potentially allowing them to hold off on further rate hikes for now.

The stock market is showing varied reactions to these developments. While some companies thrive, others are adjusting to new challenges and market landscapes. Keep an eye on these trends as they unfold.

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