The severity of the pullback in software stocks in recent days, driven by fears of advances in artificial intelligence disrupting the industry, has created opportunities for investors to position for ... ...

Core Viewpoint - AppLovin (APP) is expected to report a strong fourth-quarter performance with an estimated EPS growth of 77.5% [1] Summary by Relevant Sections - **Earnings Performance** - The consensus EPS estimate for AppLovin is $3.07 [1] - Analysts project significant growth in earnings per share for the upcoming report [1]

Core Insights - The S&P 500 has increased by 68% since the launch of OpenAI's ChatGPT in November 2022, primarily driven by gains in big tech stocks, while companies like McDonald's and Starbucks have also benefited from AI-driven productivity expectations [1] - Adobe has faced significant challenges, with its shares down 21% due to fears that AI content-creation technologies may render its services obsolete [2] - Despite the negative sentiment, Adobe reported record revenue of $19.41 billion for the fiscal year following ChatGPT's debut, with a 17% year-over-year earnings growth [5] Financial Performance - Adobe's revenue and net income have shown consistent growth over the past few fiscal years, with revenue increasing from $17.61 billion in 2022 to $23.77 billion in 2025, representing an 11% year-over-year growth in 2025 [6][7] - Net income rose from $4.76 billion in 2022 to $7.13 billion in 2025, indicating strong financial health despite market challenges [6][7] - Earnings per share (EPS) increased from $10.10 in 2022 to $16.70 in 2025, reflecting the company's ability to enhance shareholder value [7] Market Sentiment - There is a rising short interest in Adobe's stock, reaching an eight-year high, indicating growing pessimism among investors [4] - The media has raised concerns about Adobe's future, with some questioning whether it is a "falling knife" [3] - Despite bearish sentiment, there are arguments suggesting that the current market outlook may overlook Adobe's strong fundamentals and growth potential [4]

We're back on Morning Trade Live. Let's focus on Palunteer. The stock is moving higher this morning after an upgrade.More on that in a second. But Palanteer has suffered from the broader selloff in the software sector. It's down nearly 20% here in 2026 and more than 30% off November's all-time high.It's trading up about 1% right now, 144 and change. So, Palanteer is the focus of the morning trade. Joining us now as always for a closer look is Marley Kaden.Very good morning to you Marley. So, we've got Daiwa ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

Core Viewpoint - Alphabet Inc has transitioned from a tech company to an industrial giant, with its long-term debt increasing dramatically from $11 billion to approximately $70 billion in just over a year, indicating significant changes in the tech landscape [1]. Group 1: Debt Growth - At the end of 2024, Alphabet was characterized as a "capital-light" software company with minimal debt, but by late 2025, its debt surged to $46.5 billion, marking a 327% increase [2]. - The company further increased its debt by $20 billion through a bond sale in February 2026, bringing the total debt close to $70 billion, suggesting a shift towards financing akin to war rather than traditional liquidity management [2]. Group 2: Century Bond Significance - The issuance of a 100-year bond is notable as it has not been utilized by a major tech firm since Motorola in 1997, which subsequently lost its market position [3]. - This century bond acts as a financial "human shield," as pension funds and insurers now have a vested interest in protecting Alphabet from potential antitrust actions [3]. Group 3: Capital Expenditure for AI - Alphabet's borrowing is driven by the capital-intensive nature of AI, with plans to invest $175 billion to $185 billion in capital expenditures in 2026, nearly double the previous year's spending [4]. Group 4: Investor Concerns - In its February 4 10-K filing, Alphabet acknowledged that AI-powered search technologies could pose a threat to its core advertising business, which currently enjoys a 90% margin [5]. - This situation presents a paradox where Wall Street is financing a company that admits its primary revenue source may be disrupted by the very technology being funded by this debt [5].

Market Sentiment - The S&P 500 is near record levels, but overall market sentiment feels cautious despite positive economic indicators [1][2] - The market has experienced a persistent rally over the past few years, climbing a "wall of worry" [2] Dollar Dynamics - Concerns about dollar debasement are influencing stock market performance; the stock market's gains may be necessary to keep pace with a declining dollar [3] Earnings Growth - Overall earnings growth remains strong, with some sectors like energy showing a comeback, despite concerns in the software sector [4] Software Sector Analysis - Selective buying in the software sector is advised, with companies like ServiceNow expected to benefit from AI, while others like monday.com face risks of being easily replicated [6][8] Energy Sector Performance - The energy sector has been the best-performing group this year after a period of underperformance, although the portfolio has not heavily rotated into this sector [9] Investment Strategy - The investment strategy focuses on durable compounders such as Visa, Mastercard, and Meta, which have strong moats and consistent earnings growth [10] Gold and Silver Market - Central bank buying and U.S. government deficit spending are expected to drive gold prices higher over the next several years, despite short-term volatility [13] - The recent Fed appointments create uncertainty regarding the dollar's strength, contributing to potential volatility in gold and silver markets [14] Cryptocurrency Outlook - Cryptocurrency has shifted away from the "digital gold" narrative and is now viewed as a high beta asset, with capital flows being diverted to meme stocks and other assets [16] - The future of cryptocurrency remains uncertain, with potential for significant gains or losses, making it a risky investment [17][18]

Core Viewpoint - AppLovin's upcoming earnings report is seen as a critical indicator for the software sector's recent recovery, with technical analysis suggesting potential stock price gains [1] Company Summary - AppLovin is currently the sixth-largest holding in the iShares Expanded Tech-Software Sector exchange-traded fund, indicating its significant presence in the tech software market [1] - The stock's performance is being closely monitored as it may reflect broader trends in the software industry following a recent turnaround [1]

Group 1: Market Sentiment and AI Impact - Goldman Sachs CEO David Solomon described the recent sell-off in software stocks as "a little bit too broad," suggesting that the market reaction may be overblown and urging patience among investors [1][2] - Solomon indicated that there will be both winners and losers in the software industry as companies adapt to AI advancements, emphasizing that many firms will successfully pivot [2] - Smaller alternative asset managers, such as Blue Owl, experienced significant pressure on their stocks due to their exposure to software companies affected by AI developments [3] Group 2: Company Perspectives and Future Outlook - Blue Owl's CEO criticized the notion that Fortune 500 companies would completely replace their software with AI solutions, highlighting the complexity of the transition [4] - Solomon noted that while Goldman Sachs is monitoring AI-related disruptions in the software sector, the bank's exposure to this industry is "insignificant" to its overall platform [4] - Looking ahead, Solomon expressed optimism for dealmaking in 2026, particularly in mergers and acquisitions (M&A), predicting a constructive year for capital markets [5] Group 3: Investment Banking Performance - Investment banking revenue globally has increased by 10% so far this year, driven by M&A and bond underwriting activities [6] - Major deals in investment banking this year include Elon Musk's SpaceX acquiring xAI and significant bond offerings from tech giants Oracle and Alphabet, both of which are planning substantial investments in AI [6]

Artificial intelligence (AI) titan Microsoft (MSFT) has taken a rare and painful hit. After years of near-constant leadership, Microsoft is down roughly 12% in a single month, sliding from highs above $555 to Friday’s close near $401. That kind of drawdown in a mega-cap name immediately raises the question investors are now asking: More News from Barchart Is this finally a buying opportunity — or is the market signaling deeper weakness? In this video clip from Friday’s Market on Close, Senior Market S ...