Following a surge in Rocket Companies’ stock earlier this year due to positive comments from Donald Trump regarding mortgage rate reductions, investors are now expressing caution about the company’s growth potential amidst fears of disruption caused by artificial intelligence (AI).
- The company’s stock rose almost 4% on Tuesday, breaking a three-day losing streak.
- Analysts on Wall Street anticipate that Rocket Companies will report fourth-quarter revenues of $2.30 billion, marking a staggering 93% increase compared to the same period last year.
- There is optimism among investors and analysts regarding growth driven by AI, especially after the company established its mortgage segment, known as “Rocket Mortgage,” last year.
As Rocket Companies approaches its earnings report, the stock has faced volatility, with shares declining about 2% this week and potentially entering a third consecutive week of losses. Investor caution is fueled by persistently high mortgage rates and fears of AI-related disruptions, despite optimism among retail traders about the stock potentially surpassing the $20 threshold.
The stock experienced a notable rally in January when President Trump announced his intentions to lower mortgage rates for homeowners in the United States, a welcome shift after years of rising borrowing costs.
Year-to-date, Rocket’s stock has declined nearly 9%, a stark contrast to the 82% gain it saw in 2025, which was largely attributed to repeated rate cuts by the Federal Reserve.
Rocket’s Earnings Expectations
Wall Street analysts are forecasting that Rocket Companies will report fourth-quarter revenues of $2.30 billion, which represents a remarkable 93% increase from the same period last year. They also predict earnings per share to reach $0.08, up from $0.04. The company is set to announce its quarterly results on Thursday after the markets close.
Both investors and analysts are optimistic about growth driven by AI innovations. Last year, Rocket Mortgage introduced AI-powered tools such as the Pipeline Manager Agent, which assists loan officers in identifying and prioritizing leads. Additionally, they launched the Purchase Agreement AI Agent to automate reviews of purchase agreements, significantly reducing processing time by 80% while achieving better accuracy than traditional methods, projected to save over 150,000 employee hours annually.
What Is Retail Thinking?
Retail sentiment towards Rocket Companies has shifted from ‘neutral’ to ‘bearish’ in the past week, with a noted decrease in message volumes, as reported by Stocktwits.
A bullish user on Stocktwits commented on the potential for the stock to surpass the $20 mark, suggesting a 13% upside from the last closing price of $17.71.
Rocket Companies’ shares have increased nearly 36% over the past year.
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