Rackspace Surges Another 50% Higher on Palantir AI Partnership Hype - 24/7 Wall St.[S&P 5006,905.00 +0.65%][Dow Jones49,505.00 +0.28%][Nasdaq 10025,049.60 +1.07%][Russell 20002,662.73 +0.01%][FTSE 10010,708.60 +0.26%][Nikkei 22557,158.00 +0.12%][Stock Market Live February 20, 2026: S&P 500 (SPY) Sinks on US GDP Numbers][Investing]# Rackspace Surges Another 50% Higher on Palantir AI Partnership Hype### Quick ReadRackspace Technology ([RXT]) stock surged 227% after announcing a Palantir partnership. The stock ...

Amazon’s huge cloud computing arm reportedly experienced at least two outages caused by its own artificial intelligence tools, raising questions about the company’s embrace of AI as it lays off human employees.A 13-hour interruption to Amazon Web Services’ (AWS) operations in December was caused by an AI agent autonomously choosing to “delete and then recreate” a part of its environment, the Financial Times reported.AWS, which provides vital infrastructure for much of the internet, suffered several outages ...

Core Insights - Akamai Technologies, Inc. (AKAM) reported strong fourth-quarter 2025 results, with adjusted earnings and revenues exceeding the Zacks Consensus Estimate [1] - The company experienced year-over-year revenue growth, driven by solid demand across various end markets, particularly in security and cloud infrastructure services [1] Financial Performance - GAAP net income for Q4 2025 declined to $85.1 million or 58 cents per share from $139.9 million or 91 cents per share in the previous year, impacted by higher costs and operating expenses [2] - Non-GAAP net income for Q4 2025 was $270.1 million or $1.84 per share, compared to $253.9 million or $1.66 per share a year ago, beating the Zacks Consensus Estimate by 9 cents [2] - For the full year 2025, net income was $452 million or $3.07 per share, down from $504.9 million or $3.27 per share in 2024, while non-GAAP net income increased to $1.05 billion or $7.12 per share from $995.6 million or $6.48 per share in 2024 [3] Revenue Breakdown - Quarterly net sales reached $1.09 billion, a 7% increase from $1.02 billion in the year-ago quarter, driven by strong performance in the Security and Compute segments [4] - Revenues from the Security Technology Group were $592.4 million, up 11% year-over-year, primarily due to demand for Guardicore Segmentation and API security solutions [5] - The Delivery segment generated $311.1 million, down from $317.8 million in the previous year, but exceeded estimates [5] - The Cloud Computing segment reported revenues of $191.4 million, up from $167.5 million, although it missed estimates [6] - U.S. net sales were $552.9 million, a 4% increase year-over-year, while international revenues rose to $542.1 million from $490.1 million [6] Operating Expenses and Cash Flow - Total operating expenses increased to $1 billion from $871.9 million in the prior-year period, while non-GAAP income from operations improved to $316 million [7] - Adjusted EBITDA for Q4 was $457.5 million, up from $429.4 million in the year-ago quarter [7] - In Q4, Akamai generated $366.6 million in cash from operations, compared to $343.8 million in the previous year, with total cash and cash equivalents at $930.2 million as of December 31, 2025 [9] Future Outlook - For Q1 2026, Akamai expects revenues between $1.06 billion and $1.085 billion, with non-GAAP operating margins projected at 26-27% and earnings forecasted at $1.50-$1.67 per share [10] - For the full year 2026, revenues are expected to be between $4.4 billion and $4.55 billion, with non-GAAP operating margins of 26-28% and earnings projected at $6.20-$7.20 per share [11]

Economic Growth and Inflation - U.S. economic growth slowed more than expected in the fourth quarter, with GDP increasing at a 1.4% annualized rate compared to a forecast of 3.0% [2][10] - Underlying U.S. inflation increased more than anticipated in December, indicating further acceleration in January, leading traders to expect a potential interest-rate cut by the Fed in June [3][11] Stock Market Performance - The main U.S. stock indexes declined, with the Dow Jones Industrial Average falling 105.01 points (0.21%), the S&P 500 losing 16.50 points (0.24%), and the Nasdaq Composite dropping 66.81 points (0.29%) [11] - Eight of the 11 S&P sectors declined, particularly information technology and consumer discretionary, with major stocks like Tesla and Nvidia trading lower [8][11] Private Equity and Technology Sector - Private capital firm Blue Owl Capital experienced a significant drop of 6.5% after a previous decline of 5.9%, due to investor concerns over its strategy to return capital and halt redemptions [8][11] - Other private equity firms, including KKR & Co and Apollo Global Management, also saw declines of around 1% each [9][11] - Technology stocks faced pressure from concerns over high valuations and the effectiveness of AI investments, with companies like Akamai Technologies and Copart reporting significant losses [9][11]

Core Viewpoint - Nebius Group (NBIS) is recognized as a strong investment opportunity due to its rapid growth in AI-centric cloud infrastructure and significant private company investments [1] Company Overview - Nebius Group NV is a technology company providing infrastructure and services to AI builders globally, including Nebius AI, a full-stack cloud platform with large-scale GPU clusters and developer tools [2] - The company operates specialized brands such as Toloka AI for generative AI data, TripleTen for tech career re-skilling, and Avride for autonomous driving technology [2] Earnings History - Nebius Group has shown mixed earnings performance, with a positive surprise of 25% two quarters ago, reporting a loss of 39 cents against an expected loss of 52 cents [4] - Recently, the company reported a loss of 69 cents, missing the Zacks Consensus Estimate of a loss of 44 cents, resulting in a negative surprise of -56% [4] Financial Performance - The company is currently at an annual revenue run rate of $1.25 billion and anticipates capital expenditures (CapEx) between $16 billion and $20 billion for the year, with at least 60% funded from operations [5] - The consensus revenue estimate for Nebius Group is $8.7 billion, indicating potential for spinning out private company investments [5] Earnings Estimates Revisions - Earnings estimates for Nebius Group have improved, with the fiscal year 2026 loss estimate revised from $3.06 to $2.12 and fiscal 2027 from $1.28 to $0.84 over the past 60 days [7] Valuation - Nebius Group is projected to achieve sales of $3.25 billion in 2026, reflecting a remarkable 508% revenue growth, with analysts estimating $8.7 billion in revenue for 2026, equating to 167% growth [8] - The current price-to-book ratio is 5.5x, indicating a balance of growth and value, while the price-to-sales ratio stands at 48x, expected to decrease significantly due to anticipated topline growth [8] Private Company Investments - Nebius Group holds a 28% stake in ClickHouse, an AI-focused open-source database platform valued at approximately $15 billion [9] - The company owns 83% of AVRIDE, an autonomous driving technology firm recently valued at nearly $3 billion [9] - Toloka, a data labeling and AI development platform controlled by Nebius, has a valuation estimate between $500 million and $850 million, having recently raised $72 million [10] - TripleTen, an edtech platform for tech career re-skilling, is also controlled by Nebius, with valuation estimates ranging from $50 million to $800 million and reported an 88% revenue growth in 2025, reaching around $41 million [10]

Economic Indicators - The preliminary estimate of fourth-quarter U.S. GDP is expected to show an increase at a 3.0% annualized rate, following a growth of 4.4% in the previous quarter [2] - The Personal Consumption Expenditure index and February's business activity and consumer sentiment data are anticipated to provide insights into the U.S. economy's health [1] Market Sentiment - The mood among U.S. equity investors remained largely stable, with notable fluctuations on Thursday due to declines in private equity stocks and shares of major companies like Apple and Walmart [7] - Concerns over high valuations and the effectiveness of AI investments have pressured technology stocks, impacting sectors from software to real estate [6] Tariffs and Legal Considerations - The U.S. Supreme Court is expected to rule on the legality of President Trump's emergency tariffs, with potential implications for over $175 billion in U.S. tariff collections if struck down [7] Oil Market - Oil prices have dipped from six-month highs amid rising tensions between Washington and Tehran, influenced by President Trump's warnings regarding Iran's nuclear program [8] Company-Specific Developments - Akamai Technologies experienced a premarket decline of 10.9% after forecasting first-quarter adjusted profits below Wall Street estimates [10] - Cryptocurrency and blockchain-related firms saw gains, with Bitcoin rising 1.4% to $67,840, and companies like Coinbase and Strategy also experiencing increases [10]

Core Points - A class action lawsuit has been filed against CoreWeave, Inc. and certain senior executives for securities fraud following significant stock drops due to potential violations of federal securities laws [1][3] - Investors are encouraged to seek additional information regarding the lawsuit and their legal options [2][9] Company Overview - CoreWeave is an AI-focused cloud computing company that operates data centers providing high-performance GPU infrastructure [4] - The company relies on partnerships, including a merger agreement with Core Scientific announced on July 7, 2025 [4] Allegations and Stock Performance - CoreWeave allegedly overstated its ability to meet customer demand and concealed significant construction delays at its data centers [5] - The stock price dropped significantly after key announcements: - On October 30, 2025, the stock fell by $8.87 (over 6%) from $139.93 to $131.06 after the merger with Core Scientific was terminated [6] - On November 10, 2025, the stock dropped by $17.22 (over 16%) from $105.61 to $88.39 following lowered guidance due to construction delays [7] - On December 15, 2025, the stock decreased by $2.85 (over 3%) from $72.35 to $69.50 after reports of further delays in a major data center project [8]

Amazon.com, Inc. (NASDAQ:AMZN) ranks among billionaire David Tepper’s 10 favorite stocks. Benchmark reduced its price target for Amazon.com, Inc. (NASDAQ:AMZN) to $275 from $295 on February 6, but maintained a Buy rating on the tech giant. The drop follows Amazon’s recent earnings report, which included plans to invest $200 billion in capital expenditure this year, which is roughly $40 billion more than the market anticipated. christian-wiediger-rymh7EZPqRs-unsplash Despite a subdued overall reaction to ...

Core Insights - Amazon's cloud unit, Amazon Web Services (AWS), has experienced at least two outages due to errors related to its own AI tools, as reported by the Financial Times [1] Company Impact - The outages could potentially affect AWS's reputation and reliability in the cloud services market, which is critical for maintaining customer trust and competitive advantage [1] Industry Context - The incidents highlight the challenges and risks associated with integrating AI tools into cloud services, emphasizing the need for robust testing and quality assurance processes in the rapidly evolving tech landscape [1]

Tennenbaum said the company’s revenue outperformance versus guidance was driven “primarily by retention improvements across our self-serve SKUs.” Total ARR ended the quarter at $2.526 billion, down 190 basis points year-over-year. Excluding FormSwift, ARR was down 30 basis points year-over-year, with FormSwift representing a 160 basis point headwind to ARR.Chief Financial Officer Ross Tennenbaum, who joined Dropbox in December and delivered his first earnings call in the role, reported fourth-quarter revenu ...