Earnings Season Fireworks: Which Growth Stock Will Soar the Highest?

Earnings season is in full swing, and growth stocks like Uber ( $Uber(UBER)$ ), Lyft ( $Lyft, Inc.(LYFT)$ ), Duolingo ( $Duolingo, Inc.(DUOL)$ ), Nebius Group ( $NEBIUS(NBIS)$ ), D-Wave Quantum ( $D-Wave Quantum Inc.(QBTS)$ ), and SoundHound AI (SOUN) are poised for explosive moves, with potential 10%+ swings in a single day. These companies, spanning ride-sharing, language learning, AI infrastructure, quantum computing, and voice AI, are at the forefront of high-growth sectors. With the S&P 500 at 6,297.36 and Nasdaq at 20,884.27, the market’s bullish momentum is tempered by volatility risks (VIX at 15.94) and external pressures like tariffs (30% on EU/Mexico, 35% on Canada, effective August 1). Which stock should you ride for the biggest swing, and which offers the highest conviction in AI, quantum, or Nvidia-related themes? This deep dive explores their earnings potential, market dynamics, and strategic investment approaches to navigate this high-stakes week.

Market Context: A Volatile Backdrop

The market’s 2025 rally—S&P 500 up 18.06% YTD, Nasdaq up 20%—is driven by strong corporate earnings (12% YoY growth) and AI optimism, per Bloomberg. However, risks loom:

• Earnings Volatility: Mixed Q2 results—Meta’s 11% surge vs. Amazon’s 7% drop—show a market rewarding execution but punishing shortfalls, per Yahoo Finance.

• Economic Data: Nonfarm Payrolls (reported July 31, 180,000 jobs added) and upcoming ISM Manufacturing PMI (August 4, expected 48.5) could sway sentiment, per Trading Economics.

• External Risks: Tariffs and geopolitical tensions (Israel-Iran conflict, oil at $75/barrel) add uncertainty, per Reuters.

• Seasonal Trends: August’s historical 7-10% pullback risk (S&P 500 RSI 65) could amplify swings, per Morgan Stanley.

Social media on X reflects excitement for AI and quantum stocks like NBIS and QBTS, but tariff fears and valuation concerns temper enthusiasm.

Stocks to Watch: Earnings and Swing Potential

Here’s a detailed look at the six growth stocks, their earnings status, and potential for big moves:

Uber (UBER)

• Earnings Status: Reported Q2 2025, with revenue of $10.7 billion (up 15% YoY) and EPS of $0.47, beating estimates of $10.5 billion and $0.45, per Yahoo Finance. Shares rose 5% post-earnings.

• Performance: Up 45.5% YTD to $75, outperforming the S&P 500’s 18.06%. Forward P/E of 26.93x is above the industry’s 19.27x, per Nasdaq.

• Catalysts: Strong gross bookings ($39.5 billion, up 17%) and autonomous vehicle expansion (1.5 million trips) drive growth. Bank of America raised its target to $115, per Investopedia.

• Swing Potential: Post-earnings volatility has passed, limiting immediate swing potential. Long-term growth in ride-sharing and delivery supports holding.

Lyft (LYFT)

• Earnings Status: Reported Q2 2025, with revenue of $1.4 billion (up 14% YoY) and EPS of $0.02, beating estimates but with weaker guidance, per Yahoo Finance. Shares surged 20% due to a typo in the earnings report, later corrected, stabilizing at $12.

• Performance: Up 9% YTD, lagging Uber’s 45.5%. Forward P/E of 11.34x is attractive, per Nasdaq.

• Catalysts: A $750 million share buyback and 16% ride growth to 218.4 million highlight progress, but Lyft’s U.S.-focused model limits scale, per The Motley Fool.

• Swing Potential: Post-earnings volatility has subsided, reducing near-term swing opportunities. Its lower valuation makes it a value play.

Duolingo (DUOL)

• Earnings Status: Reported Q2 2025 on August 6, 2025, with revenue of $240.8 million (up 35% YoY) and EPS of $1.29, beating estimates of $227.4 million and $0.72, per Nasdaq. Shares soared 26% to $518.

• Performance: Up 89% YTD, driven by 40% paid subscriber growth to 10.3 million and 50% daily active user (DAU) growth to 46.6 million, per Investopedia.

• Catalysts: Expansion into 148 new language courses using AI and a $220 billion TAM fuel optimism, per Benzinga. JPMorgan raised its target to $500.

• Swing Potential: Post-earnings surge limits immediate swing potential, but long-term growth in edtech supports holding.

Nebius Group (NBIS)

• Earnings Status: Set to report Q2 2025 on August 7, 2025. Q1 revenue was $310 million (ARR), with projections of $372-$403 million by Q2’s end, per group.nebius.com. EPS expected at -$0.42, per stockinvest.us.

• Performance: Up 81.6% YTD to $54.73, with a 36.9% one-month gain, per TradingView. Forward P/E is negative due to losses (-$396.9 million in 2024).

• Catalysts: Nvidia-backed AI infrastructure, including GPU clusters and cloud platforms, drives growth. Expanding data center capacity to 100 MW by year-end, per group.nebius.com.

• Swing Potential: High implied volatility (120%) and Nvidia ties suggest a 10-15% swing post-earnings. A beat could push shares to $60-$65; a miss might drop them to $50.

D-Wave Quantum (QBTS)

• Earnings Status: Set to report Q2 2025 on August 7, 2025. Q1 revenue was $9.4 million, with Q2 expected at $10.5 million, per stockanalysis.com. EPS forecast at -$0.05, per TipRanks.

• Performance: Up 104% YTD to $18, with a 52-week high of $20, per Nasdaq. High beta (2.5) signals volatility.

• Catalysts: Recent quantum AI toolkit launch and Nvidia partnerships boost sentiment, per Yahoo Finance. Stifel initiated a Buy rating with a $20 target, per TipRanks.

• Swing Potential: Quantum computing’s speculative nature and high IV (130%) suggest a 10-20% swing. A strong beat could push shares to $20-$22; a miss might drop them to $15.

SoundHound AI (SOUN)

• Earnings Status: No confirmed Q2 earnings date, but Q3 2024 revenue rose 89% to $13.3 million, per Benzinga. Next earnings likely in November 2025.

• Performance: Up 89% YTD to $15.20, with a 52-week high of $16, per Nasdaq. Forward P/E is negative due to losses.

• Catalysts: Voice AI partnerships with automotive and hospitality sectors drive growth. Nvidia’s stake adds credibility, per The Motley Fool.

• Swing Potential: Without an imminent earnings date, swings depend on momentum or news. A 10% move is possible on partnership announcements.

Which Stock Offers the Biggest Swing?

It seems likely that D-Wave Quantum (QBTS) has the highest potential for a significant swing due to its August 7, 2025, earnings and position in the high-growth quantum computing sector. Its speculative nature, Nvidia partnerships, and recent product launches could drive a 10-20% move if results impress. Nebius (NBIS) is a close second, with its AI infrastructure focus and Nvidia backing, but its higher valuation tempers upside. SoundHound (SOUN) is a momentum play but lacks an immediate earnings catalyst. Uber, Lyft, and Duolingo, having reported, are less likely to see earnings-driven swings.

Highest Conviction: AI, Quantum, or Nvidia-Related?

• Quantum (QBTS): Highest conviction for a big swing due to its earnings catalyst, quantum computing potential, and Nvidia ties. The $971 billion semiconductor market by 2028, per Nasdaq, supports its long-term upside, but its early-stage status carries risks.

• AI (NBIS, SOUN): NBIS offers strong growth in AI infrastructure, with a clearer path to profitability. SOUN’s voice AI is promising but less immediate without earnings.

• Nvidia-Related: Both QBTS and NBIS benefit from Nvidia’s ecosystem, but QBTS’s quantum focus aligns with cutting-edge innovation, giving it an edge for speculative investors.

Trading Strategies

Short-Term Plays

• QBTS Buy on Dip: Enter at $16-$17 post-earnings, target $20-$22, stop at $15. A 13-29% gain if quantum AI tools gain traction.

• QBTS Options Straddle: Buy $18 calls/puts (August expiry) for volatility, targeting 200-300% gains on a 10%+ move.

• NBIS Buy on Dip: Enter at $50-$52, target $60-$65, stop at $48. A 15-25% gain if earnings beat.

• NBIS Options Straddle: Buy $54 calls/puts (August expiry) for volatility, targeting 200-300% gains.

• SOUN Momentum Trade: Buy at $14-$15, target $17-$18, stop at $13. A 13-20% gain on news-driven momentum.

Long-Term Investments

• Hold QBTS: Buy at $16-$17, target $25-$30 by 2026, for 47-76% upside with quantum growth.

• Hold NBIS: Buy at $50-$52, target $70-$80 by 2026, for 35-54% upside with AI infrastructure.

• Hold DUOL: Buy at $450-$460, target $550-$600 by 2026, for 19-30% upside with edtech growth.

• Diversify with XLK ETF: Buy at $200, target $220, stop at $190, for tech exposure.

Hedge Strategies

• VIXY ETF: Buy at $15, target $18, stop at $13, to hedge tariff or earnings volatility.

• SPY ETF Puts: Use puts at $614 to protect against a 5-10% S&P 500 pullback.

• Gold ETF (GLD): Buy at $200, target $220, stop at $190, as a safe-haven hedge.

My Trading Plan

I’m riding QBTS for its quantum computing potential and August 7 earnings, buying at $16-$17, targeting $20-$22, with a $15 stop, and using an $18 call/put straddle for volatility. I’ll add NBIS at $50-$52, targeting $60-$65, with a $48 stop, for AI exposure. For diversification, I’ll buy XLK at $200, targeting $220, with a $190 stop. I’m hedging with VIXY at $15, targeting $18, and keeping 20% cash for dips if tariffs, geopolitical tensions, or earnings misses escalate. I’ll monitor QBTS’s earnings call, NBIS’s AI infrastructure updates, and tariff developments for cues.

Key Metrics

The Bigger Picture

This earnings season is a battleground for growth stocks, with QBTS and NBIS offering the biggest swing potential due to their August 7 reports and exposure to quantum computing and AI infrastructure. QBTS stands out for its high-risk, high-reward profile, driven by quantum advancements and Nvidia ties. NBIS is a strong contender with its AI infrastructure growth, while SOUN is a momentum play. Uber, Lyft, and Duolingo, having reported, are better for long-term holds than immediate swings. With tariffs, geopolitical risks, and August volatility looming, investors should use options for leverage, hedge with VIXY or GLD, and keep cash for dips. QBTS is the stock to ride for a big swing—buckle up for the quantum leap!

Which growth stock are you riding this earnings season? Share your strategy below! 🎁

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