Wall Street Breakfast Podcast: Rocketlab Drops, SoundHound Climbs In Premarket Trading

Investors are keenly observing the latest movements in the stock market, particularly with shares of Rocket Lab USA and SoundHound showing significant changes in premarket trading.

Rocket Lab USA Declines

In premarket trading, Rocket Lab USA (NASDAQ:RKLB) has experienced a notable decrease of 11%. This decline comes despite the company reporting a successful year, with annual revenue soaring to $436.2 million, a 78% increase year-over-year. The fourth quarter also impressed with revenue reaching $132.4 million, marking a remarkable 121% growth compared to the same period last year. However, the company has set a cautious outlook for the first quarter of 2025, projecting revenue between $117 million and $123 million, which falls short of the $135.67 million consensus estimate. Furthermore, Rocket Lab anticipates an adjusted EBITDA loss ranging from $33 million to $35 million.

SoundHound Experiences Growth

On the other hand, SoundHound (NASDAQ:SOUN) is witnessing a positive surge, climbing 7% in the premarket. The company reported fourth-quarter results that exceeded expectations, with revenues jumping by 101% year-over-year. This strong performance has allowed SoundHound to raise its full-year 2025 revenue guidance to between $157 million and $177 million, up from its previous estimate of $155 million to $175 million. The advantageous results are attributed to the growing demand for voice-enabled Agentic AI technology. At the close of the year, SoundHound boasted nearly $200 million in cash and was free of debt, positioning it solidly in the market.

Additional Market Insights

Turning to other market events, Edison International (NYSE:EIX) is counting on California's wildfire fund as the company faces several lawsuits potentially tied to equipment that may have caused a recent deadly fire near Los Angeles. Despite these challenges, the CEO expressed confidence in the wildfire fund, which is designed to help utilities manage claims related to fire damages.

In tech sector news, TikTok (BDNCE) has announced plans to invest $8.8 billion in data centers in Thailand over the next five years. This move aligns with Thailand's ambitions to be a leading digital innovation hub in the region.

Market Trends Ahead

Looking ahead, futures for the Dow, S&P, and Nasdaq are showing positive trends. Meanwhile, crude oil prices have dipped nearly 1.2% to $69 per barrel. Bitcoin has seen a decrease of 8.2%, trading at around $79,000. Furthermore, significant stock movements today have included Red Robin's unexpected rally, which reflects growing investor confidence in its turnaround strategies.

This summary serves as a snapshot of the latest key stock performances and macroeconomic events shaping the financial landscape on this notable trading day.

Stocks, RocketLab, SoundHound