Breakfast News: Enphase Pops 20% On Bright Future

Breakfast News: Enphase Pops 20% On Bright Future

February 4, 2026

Source: Image created by Jester AI.

1. Enphase Soars as Q1 Guidance Raised

Enphase Energy (ENPH 2.55%) climbed more than 20% in early hours trading – despite reporting a 24% earnings drop year over year (YoY) in the fourth quarter to $0.71. But that was well ahead of the expected $0.54.

• “Q1 marks the low point … with improvement expected through 2026”: CEO Badrinarayanan Kothandaraman said the solar energy specialist expects underlying demand to grow in the second half, though Q1 revenue guidance of $270-$300 million is still ahead of the analyst consensus.
• U.S. revenue contributed 89% of total: Domestic demand led the way, “driven by increased solar and battery installation ahead of the expiring section 25D tax credit.” The company saw a non-GAAP gross margin of 46% in Q4, even after a 5% reciprocal tariffs impact.

2. The Best of the Rest From After-Hours Earnings

• AMD (AMD 0.13%) posted a 34% revenue jump in Q4, as CEO Lisa Su spoke of “record revenue, net income, and free cash flow driven by broad-based demand for our high-performance computing and AI products.” The stock dipped 7% overnight, with weaker China GPU sales expectations for Q1 weighing on sentiment.
• Chipotle (CMG 2.97%), a Team Hidden Gems rec in Stock Advisor, reported a 4.9% Q4 revenue rise – but the stock fell 6% in pre-market trading after CFO Adam Rymer said “margins in 2026 will be under pressure,” with the company expecting price rises in the year below inflation.
• Lumentum (LITE 5.90%) spiked up 10% this morning off the back of a 65% revenue jump in Q2. It led Fool analyst Jason Moser to ask “Is Lumentum the New Nvidia (NVDA 1.01%),” citing the company’s note “We are only at the starting line for two substantial opportunities” in optical comms technology.

3. What to Make of the Software Sell-Off?

The S&P 500’s software sector fell 6% yesterday, with investors spooked by fears of AI eclipsing more traditional software products. PayPal (PYPL 1.70%) plunged 20% on the day, with a number of other Fool favorites also suffering. So what do Fool analysts think of it all?

• “I believe AI might not be as transformative as we once hoped”: Lou Whiteman, of Team Hidden Gems, does think AI “will still incrementally improve processes and remove many headaches,” but is focused on hardware, adding “the next 20 [years] could be about using AI to help create new physical things.”
• “I haven’t looked at my portfolio. I won’t be looking at it at all today”: Team Rule Breakers’ Tim Beyers, meanwhile, says “I’m not in the market for gains this week, month, or even year. I’m looking ahead to the next 10 to 20 years,” adding “patience gives us the opportunity to win.”

4. Wednesday’s Selected Q4 Earnings

• Alphabet (GOOG 0.48%) is due to report after market close today. Eyes will be on capital expenditure plans for 2026, and on planned expansion of Waymo autonomous driving, following on from the company’s first $100 billion quarterly revenue in the third quarter.
• Uber (UBER 0.23%) reported a record quarter in Q4 this morning, with trips up 22% YoY to 3.8 billion, beating the 3.5 billion in Q3 when the Rule Breakers rec saw revenue increase 20%. Revenue grew 20% YoY again this time, with GAAP income from operations up 130% YoY. The stock dipped over 8%, likely due in part to intensified fears over autonomous vehicle competition.
• CME Group (CME +0.64%) – recommended in _SA _by Team Rule Breakers – reported its fourth year in a row of record annual revenue and earnings, after maintaining steady earnings in Q3 even though trading volumes declined. Total revenue for the year rose 6% to $6.5 billion with market data revenue up 13%. The stock edged up 1% in response.

5. Your Take

What stocks have you added to your portfolio in the last few weeks, and why?

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