- The Daily Rip by Stocktwits
- Posts
- Two Week Record for Worst
Two Week Record for Worst
RIP: The non-AI internet
Kevin Travers
February 03, 2026 • Reading Time: 13 minutes
In partnership with
CLOSING BELL
Two Week Record for Worst
Happy Tuesday! Yesterday, the Dow closed above $49K for the first time ever, and the S&P 500 was knocking on the door of 7k, and wouldn’t you know it the S&P 500 just finished with its worst single day of trade in two weeks.
Earnings results are showing companies that use AI well are raking in the profit, even while restaurants, chip makers and software companies struggle to excite investors.
New tech like OpenClaw, an opensource always-on AI agent project that exploded on Twitter, recently scared software bulls. People started sharing screenshots of supposedly AI-only websites like AI Reddit copy moltbook, giving investors reasons to pull back on software stocks. iShares Expanded Tech-Software ETF was down 4.6%, dropping like a rock for the past six days.
Basically, people are hosting AI chat bots 24/7 on home computers to run tasks for them and using extra processing power to launch fun projects — it’s very NFT, Bored Ape tech bro vibes, and honestly a little exaggerated like Decentraland or Meta’s VR plans back in Covid times — it’s probably a meme fad for Twitter nerds. Still, a year ago AI bots mastering website-building complexity were a pipe dream, which is why the market is holding back. How do you like my new tables by the way, my clanker coded them. 🤖
In macro, fears subsided as the market continued to price in Kevin Warsh, a sometime hawk and sometimes cut fanatic that will join the FOMC in May. The House passed a resolution to fund the government, signed by Trump after the closing bell.
Gold and silver bounced back with a fervor, while Bitcoin did its best to hold between $80k and $70K like a crab stuck beneath a rock on the beach at high tide. Let’s check out how AMD, PayPal, and Chipotle, reported.
AFTER THE BELL
AMD Beats, But Outlook Doesn’t Look Neat 💾
$AMD ( ▼ 1.69% ) fell 8% after hours, as the market made clear that "good" is no longer enough for a stock trapped in a future-dated reality. While its Q4 numbers held firm, the market’s hunger for the Helios rack-scale platform pulled the stock back, according to Bloomberg. Constellation Research CEO Ray Wang explained that Helios was the first legitimate threat to Nvidia’s dominance, but AMD showed up to its report with a lack of concrete shipping milestones.
AMD reported fourth-quarter revenue of $10.3 billion, significantly beating the $9.67 billion consensus and growing 34% year-over-year. Adjusted earnings hit $1.53 EPS, blowing past the $1.32 analyst target, driven primarily by a surge in server CPU demand and early Instinct GPU shipments.
Despite the beat, Sarah Kunst of CLEO Capital noted that $AMD is currently acting more as a "bellwether" for general AI demand than a "rainmaker" that can unseat the incumbent. The stock remains under pressure because the 6-gigawatt partnership with OpenAI and Helios systems are not expected to reach significant volume until the second half of 2026.
The Outlook: Management's 2026 roadmap centers on the MI400 series and the CDNA 5 architecture, but investors are already pricing in the 2027 transition to the MI500 and CDNA 6. To reverse the slide, $AMD must prove it can move beyond "talk" of its $14 billion to $15 billion AI pipeline and demonstrate that it can actually deliver the hardware to customers at scale.
Chipotle 🌯
$CMG ( ▲ 1.71% ) shares dropped 9% initially after providing a jarring outlook that suggests its white-hot momentum has finally hit a wall. While the company is aggressively expanding its footprint, the beat was hollow as comparable restaurant sales fell 2.5%, the first such decline since 2015, while adjusted earnings of $0.25 EPS remained essentially flat year-over-year.
A "bifurcated" consumer base is the primary culprit, a buzz word poeple use to say the middle class has degraded. Lower-income diners are pulling back on fast-casual spending, leading to a 3.2% drop in transactions. CEO Scott Boatwright’s plan to open up to 370 new locations in 2026 is being viewed as an expensive "land grab" to mask the underlying decay in existing store productivity and a restaurant-level margin that compressed to 23.4%.
Super Micro Computer 🤏 💻️
SMCI is swinging wildly post market as the market attempts to value an eye-popping revenue beat against a total structural collapse in profitability. Super Micro reported Q2 revenue of $12.7 billion, growing 122% year-over-year. However, the victory was marred by a non-GAAP gross margin that plummeted to 6.4%, down from 11.8% a year ago. Management spent $24M in cash just to keep the lights on in the past quarter, as SMCI tests how expensive it is to try and make money installing Nvidia’s Blackwell chips.
SPONSORED
If you work in fintech or finance, you already have too many tabs open and not enough time.
Fintech Takes is the free newsletter senior leaders actually read. Each week, we break down the trends, deals, and regulatory moves shaping the industry — and explain why they matter — in plain English.
No filler, no PR spin, and no “insights” you already saw on LinkedIn eight times this week. Just clear analysis and the occasional bad joke to make it go down easier.
Get context you can actually use. Subscribe free and see what’s coming before everyone else.
*3rd Party Ad. Not an offer or recommendation by Stocktwits. See disclosure here.
STOCKS
PayPal and Palantir: The World of Opposites
PayPal Leadership Vacuum and Guidance Reset Sink Shares 📉
$PYPL ( ▼ 20.31% ) plummeted 18% to levels not seen since 2017 on Tuesday after a catastrophic Q4 report that missed on both the top and bottom lines. The sudden departure of CEO Alex Chriss, replaced by HP veteran Enrique Lores, has signaled to the market that the "transition phase" will be far longer and more painful than previously anticipated.
PayPal reported Q4 earnings of $1.23 EPS on $8.68 billion in revenue, missing the $1.29 and $8.79 billion analysts had expected. Branded checkout growth decelerated to just 1% as the company continues to lose market share to digital wallet competitors, and a 5% drop in transactions per active account and the withdrawal of all long-term 2027 financial targets sent investors into panic mode.
Guidance for 2026 was the final blow, and the stock fell to 7x forward earnings, the stock has become a deep-value turnaround play that requires new leadership to prove it can stop the bleed in branded payments.
Palantir Guidance "Crushes" Consensus as AI Scaling Intensifies 🦅
On the flip side of the coin, $PLTR ( ▲ 6.85% ) shares rocketed on 2026 revenue guidance Monday night that left Wall Street analysts scrambling to revise their models. The company’s focus on "commodity cognition" and its AIP bootcamps has triggered a massive breakout in U.S. commercial demand, effectively decoupling the stock from the broader software sector.
TRENDING STOCKS
Market Movers
$FUBO ( ▼ 22.03% ) : The streaming platform crashed following a reported pro forma net loss of $46.4 million and the announcement of a planned 1-for-8 to 1-for-12 reverse stock split.
$WMT ( ▲ 2.94% ) as shares hit $126, the retail giant pushed past a $1T market cap for the first time ever. This puts Walmart in an elite club of only 12 public companies to ever reach that milestone.
Winners and Losers
$DVA ( ▲ 21.17% ) : DaVita gapped up after reporting a $3.40 EPS beat and issuing a robust 2026 earnings outlook of $13.60–$15.00 per share.
$TER ( ▲ 13.41% ) : Teradyne hit new all-time highs as AI-driven demand fueled more than 60% of Q4 revenue, leading to the company's largest EPS beat in five years.
$AES ( ▲ 9.23% ) : The utility provider saw increased interest as new options contracts became available, reflecting a defensive rotation amidst broader tech sector weakness.
$TRI ( ▼ 15.67% ) : Thomson Reuters hit a new 52-week low as investors worried that generative AI could cannibalize its core professional information and legal research revenue streams.
$CSGP ( ▼ 15.45% ) : CoStar Group faced heavy selling after management defended its controversial investment in Homes.com despite intense pressure from activist investor Dan Loeb of Third Point.
$EXPE ( ▼ 15.26% ) : Expedia shares dropped as part of a broader growth stock selloff triggered by rising Treasury yields and new White House tariff announcements affecting European trade.
ST MEDIA
Stocktwits Stories 🗞️
Don’t miss a story! Follow @StocktwitsNews for a live feed in real time. ✍️
WHAT’S ON DECK
Tomorrow’s Top Things 📋
Chip makers and users report Wendesday:
Wall Street expects Alphabet to report Q4 results on February 4 with consensus $2.65 EPS on $95.08 billion in revenue. Investors are bracing for a report that must justify a $91 billion to $93 billion full-year capital expenditure plan. Analysts are modeling 16% revenue growth, spearheaded by a projected 35.4% surge in Google Cloud sales to $16.25 billion.
$QCOM reports Q1 fiscal 2026 results on February 4 with analysts pegging earnings at $3.37 EPS on $12.23 billion in revenue. Handset revenue is expected to anchor the quarter at $7.79 billion, representing modest 2.9% growth.
$ARM is set to report Q3 fiscal 2026 earnings after the bell on February 4, with consensus estimates at $0.41 EPS and $1.24 billion in revenue.
Here’s what else to watch:
Macro: ADP Employment, ISM Services PMI, Crude Oil Inventories. 📊
Pre-Market Earnings: $UBER, $ABBV, $LLY, $NVO, $GSK, $PSX, $NVS, $BSX, $BAM, $SAN, $CME, $UBS, $SWK, $JCI, $YUMC. ☀️
After-Market Earnings: $GOOG, $GOOGL, $QCOM, $ARM, $MCK, $ORLY, $MET, $AFL, $ALL. 🌙
P.S. You can listen to all of these earnings calls on Stocktwits.
Links That Don’t Suck 🌐
Get In Touch 📬
How Was The Daily Rip Today? |
Terms & Conditions 📝
Securities Disclaimer: STOCKTWITS IS NOT A TAX ADVISOR, BROKER, FINANCIAL ADVISOR OR INVESTMENT ADVISOR. THE SERVICE IS NOT INTENDED TO PROVIDE TAX, LEGAL, FINANCIAL OR INVESTMENT ADVICE, AND NOTHING ON THE SERVICE SHOULD BE CONSTRUED AS AN OFFER TO SELL, A SOLICITATION OF AN OFFER TO BUY, OR A RECOMMENDATION FOR ANY SECURITY. Trading in such securities can result in immediate and substantial losses of the capital invested. You should only invest risk capital and not capital required for other purposes. You alone are solely responsible for determining whether any investment, security or strategy, or any other product or service, is appropriate or suitable for you based on your investment objectives and personal and financial situation. You should also consult an attorney or tax professional regarding your specific legal or tax situation. The content is to be used for informational and entertainment purposes only and the service does not provide investment advice for any individual. Stocktwits, its affiliates and partners specifically disclaim any and all liability or loss arising out of any action taken in reliance on content, including but not limited to market value or other loss on the sale or purchase of any company, property, product, service, security, instrument, or any other matter. You understand that an investment in any security is subject to a number of risks and that discussions of any security published on the Service will not contain a list or description of relevant risk factors. In addition, please note that some of the stocks about which content is published on the service have a low market capitalization and/or insufficient public float. Such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information. Read the full terms & conditions here. 🔍
Author Disclosure: The author of this newsletter does not hold positions in any of the securities or assets mentioned. 📋
Reply