After the company’s stock rallied in January following Trump’s comments on lowering mortgage rates, investors have grown cautious about Rocket Companies' growth prospects amid AI disruption fears.
- The company’s stock closed nearly 4% higher on Tuesday, snapping a three-day losing streak.
- Wall Street analysts expect fourth-quarter revenue for Rocket Companies to come in at $2.30 billion, a 93% increase from a year ago.
- Investors and analysts are expecting growth stemming from AI, with the company last year, in its mortgage segment, named “Rocket Mortgage.”
Rocket Companies is heading into its earnings after a choppy week, with the company’s shares falling 2% this week and likely moving to its third-straight week of losses as investors turn cautious, given still elevated mortgage rates and AI-based disruption even as retail traders turn optimistic about the stock breaking the $20 mark.
In January, the stock rallied after U.S. President Donald Trump said he was working to lower mortgage rates for Americans, following several years of elevated borrowing costs.
The company’s stock has lost nearly 9% so far this year, compared to the stock gaining 82% in 2025 following repeated rate cuts by the Federal Reserve
Rocket’s Earnings Expectations
Wall Street analysts expect fourth-quarter revenue for Rocket Companies to come in at $2.30 billion, a 93% increase from a year ago, and earnings per share to come in at $0.08, compared to $0.04, according to data from Fiscal AI. The company is expected to post quarterly results on Thursday after the markets close.
Investors and analysts are expecting growth stemming from AI. Last year, the company’s mortgage segment, named “Rocket Mortgage,” released AI-powered Pipeline Manager Agent, a tool that enables our loan officers to identify and prioritize the right leads.
Rocket Mortgage also launched the Purchase Agreement AI Agent, automating the complex, county-specific review of purchase agreements. The company said that this automation reduces processing time by 80% while achieving accuracy that exceeds the legacy review process and is projected to save more than 150,000 team member hours annually.
What Is Retail Thinking?
Retail sentiment on Rocket Companies dipped to ‘bearish’ from ‘neutral’ a week ago, with message volumes at ‘low’ levels, according to data from Stocktwits.
A bullish user on Stocktwits noted that the stock could break the $20 mark. The price implies a 13% upside to the last closing price of $17.71.
Shares of Rocket Companies have jumped nearly 36% in the last 12 months.
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