Good morning.
Reddit never sleeps. Users are constantly talking about the next small-cap opportunities. AltIndex has a brand-new batch of Reddit penny stock data to share, with familiar and not-so-familiar tickers alike. See Reddit’s new top 10 penny stocks →
And Wall Street's selling the future, literally. Software stocks cratered after Anthropic's new AI legal tools announcement (but did you see their Super Bowl ad?), then Alphabet told investors it plans to spend 50% more than expected on AI infrastructure this year (GOOG whipsawed)…
…And Bitcoin slid below $70,000 after Treasury Secretary Bessent said the government won't bail out crypto. Cue the Michael Burry doom and gloom (he might be right).
Today in markets:
Bitcoin is toast? BTC “death spiral” could be next
Anthropic’s AI tool release sinks Salesforce, ServiceNow shares
Google is going to spend beaucoup cash on AI this year
Netflix's $83 billion Warner Bros. deal got shredded by senators
Let's get into it.
This is not financial advice. Always do your own research. Past performance doesn’t guarantee future results.
In partnership with AltIndex
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📰 Market Headlines
US stocks slumped for a second straight day as a tech-led selloff deepened on AI disruption fears.
The Nasdaq dropped over 1.5%, the S&P 500 fell 0.5%, and the Dow bucked the trend with a 0.4% gain as investors rotated into blue-chip names.
Redditors cannot predict the future. However, they talk about stocks a lot over there, especially in penny stock subreddits. And while monitoring Reddit comment data will never guarantee returns, we think it can provide a meaningful pulse on the market that you just don’t get from analyst ratings and earnings reports alone. Here are the current top 10 penny stocks on Reddit.
Anthropic is running some wild Super Bowl ads (here and here) that directly make fun of OpenAI’s own “pull up” ad from last fall. The main focus is on criticizing OpenAI for rolling out advertisements in their free-level AI chatbot service.
The roast was so good that even OpenAI CEO Sam Altman got upset on social media about it, but the public seems to still be largely on Anthropic’s side… In marketing that’s usually a signal that you did something right.
Why does this matter? Both OpenAI and Anthropic have signaled that they’re planning to IPO this year. Blows between the companies now, especially over a topic as sensitive as ads, could potentially affect both companies’ performance on the public stock market in the future.
Software stocks are in freefall. The S&P 500 software and services index has plunged 26% from its October peak after Anthropic's new legal automation tools spooked the market. Salesforce, ServiceNow, and SAP are all down double digits over the past five sessions. Thomson Reuters cratered 16% Tuesday alone.
Alphabet's capex guidance stunned Wall Street. The Google parent beat on earnings and revenue, but announced 2026 capital spending of $175-$185 billion, roughly 50% higher than analysts had modeled. The stock whipsawed after hours.
Bitcoin tumbled below $70,000 after Treasury Secretary Scott Bessent told Congress he has no authority to bail out crypto. The remarks only deepened bitcoin's recent rout, down 13% over five days and 40% from its October high.
The Big Short’s Michael Burry warned of “sickening scenarios” if BTC’s price fell this low; he thinks the slide could trigger a "death spiral."
Netflix's $83 billion Warner Bros. merger hit a wall on Capitol Hill. Senators from both parties grilled executives on antitrust concerns, labor impacts, and Trump's post-announcement stock purchases. Not a single lawmaker offered unqualified support.
Private payrolls added just 22,000 jobs in January, according to ADP, far below the 45,000 expected and the weakest reading in months. The official jobs report has been pushed to next Wednesday due to the government shutdown.
Eli Lilly surged 10% on a 2026 profit forecast that topped estimates, pushing its market cap back above $1 trillion. Meanwhile, rival Novo Nordisk extended its slide after forecasting a 5%-13% drop in sales this year.
Texas Instruments is buying Silicon Labs for $7.5 billion, sending SLAB shares up 49%. The deal expands TI's push into wireless connectivity chips.
AMD fell sharply despite beating Q4 estimates, as its weak sales outlook raised doubts about its ability to challenge Nvidia. Qualcomm dropped 8% after a memory chip shortage clouded its guidance.
🤖 AI/Future/Tech News
Google's Gemini app hit 750 million monthly active users, up from 650 million last quarter, trailing ChatGPT's 810 million.
Amazon rolled out Alexa+ to all US users after a year in early access; it costs $19.99/month but remains free for Prime members.
Uber promoted insider Balaji Krishnamurthy to CFO as it doubles down on robotaxi expansion, targeting 15 cities by year-end.
🪙 Crypto
Bitcoin's network slowed dramatically as block times spiked to 19.33 minutes, signaling miners are stepping back amid a profitability squeeze.
Bitcoin difficulty is set to drop 14-18% around Feb. 8, the sharpest drawdown since China's 2021 mining ban.
Vitalik Buterin called out Coinbase's Base for corporate control, arguing the era of "branded shard" Layer-2s is over as Ethereum's mainnet gets cheaper.
🤫 Insider Trading
Stocks | Who bought/sold | Details | Total |
|---|---|---|---|
ax8 Inc ($EGHT) | Chief Product Officer | Sold 85,044 shares @ $2.50 | $212,814 |
Rush Street Interactive Inc ($RSI) | Chief Executive Officer | Sold 247,114 shares @ $17.61 | $4.3 million |
❓ Market Trivia Corner
Which index fund has performed the best over the past 5 years?
🎤️ What you said last time
“I would limit my exposure by limiting the amount of money the bot could trade”
🧠 The Missing (Market) Links
The Bank of England just held interest rates, just like the Fed did.
The corporate DEI index has seen “a 65% drop in participation from Fortune 500 companies,” according to CNBC.
US crude oil inventories dropped 3.5 million barrels last week to 420.3 million, 4% below the five-year average.
Disney's US parks are bracing for a sharp drop in international visitors as immigration policy concerns keep tourists away, costing an estimated $4 billion.
Las Vegas passenger traffic fell 9.6% in November, with Air Canada flights down 40%.
📜 Quote of the Day
Don’t look for the needle in the haystack. Just buy the haystack
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