5 Things to Watch on
February 5, 2026

Markets are down more than -0.6% today, extending yesterday’s selloff, as a sharp AI-driven rout tears through global equities and credit. Unlike prior pullbacks fueled by bubble fears, this one is about disruption. Investors are suddenly pricing in AI, actively eroding core business models, with software stocks at the epicenter after tools like Anthropic’s legal-tech launch signaled how fast real-world displacement could arrive.

Alphabet (GOOGL) is down over -4.0% in premarket trading despite beating earnings and revenue expectations, as investors focused on the company’s sharply higher AI spending plans. Strong growth in Google Cloud highlighted accelerating demand for AI infrastructure, but management’s plan to more than double capital expenditures in 2026 raised concerns about near-term profitability. Analysts said rising costs tied to AI, DeepMind, and autonomous driving could weigh on margins, even as GOOGL’s long-term AI and cloud strategy continues to strengthen.

Bitcoin (BTC) fell below the closely watched $70,000 level for the first time since late 2024, sliding to around $69,500 as a broader sell-off in tech stocks spilled into crypto markets. Investors pointed to heavy liquidations and fading institutional demand, with more than $2B in crypto positions wiped out this week and ETFs turning into net sellers. Analysts warned that a sustained break below $70,000 could open the door to further downside toward the $60,000–$65,000 range, as BTC increasingly trades on liquidity and capital flows rather than hype.

Netflix (NFLX) and Paramount Skydance (PSKY) are trading higher in premarket trading after President Trump said he will stay out of the takeover fight over Warner Bros. Discovery (WBD), leaving the decision to the Justice Department. The comment marks a clear shift from December, when Trump suggested he would personally weigh in due to NFLX's growing market power. NFLX has offered ~$82.7B for WBD’s studio and streaming assets, a bid backed by the board. Meanwhile, PSKY is pursuing a larger hostile ~$108B offer for the entire WBD enterprise, extending its deadline to Feb. 20.

Qualcomm (QCOM) is down over -10.0% in premarket trading despite posted record revenue of $12.3B, supported by strong premium handset demand and continued growth in automotive and IoT. However, management cautioned that near-term handset volumes will be constrained by DRAM shortages as memory supply shifts toward AI data centers, weighing on upcoming guidance. Despite the short-term headwind, QCOM reiterated confidence in its longer-term outlook, pointing to accelerating automotive growth, solid IoT momentum, and a rebound in handset growth once memory conditions normalize.