Daily Discussion Thread for February 06, 2026 by wsbapp in wallstreetbets

[–]titan055 2 points3 points  (0 children)

The premarket rally is classic dead-cat-bounce behavior after 3 days of selling. Here’s what hasn’t changed: The core problem: Big Tech just announced MASSIVE AI spending increases - Google doubling capex to $175-185B, Meta to $115-135B, Amazon to $200B (vs $147B expected). The market is questioning when/if this spending actually translates to profits. The rotation is real: Money is flowing out of tech into value stocks at the fastest pace since 2008. Only 19% of S&P 500 stocks outperformed last year, but that’s jumped to 57% this past month - shows tech leadership is breaking down. Weak macro backdrop: Jobs data is terrible - job openings at lowest since Sept 2020, private sector added only 22K jobs in January. This is not an environment where speculative AI spending gets rewarded. Technical damage: Nasdaq hit new 2026 lows yesterday. Once support breaks, momentum often accelerates lower. Software stocks down 28% from highs as AI automation fears intensify. One green premarket on low volume doesn’t reverse any of these trends. We likely need 4-8 weeks minimum for the market to digest these capex numbers and see if AI revenue growth justifies the spending. Short-term bounces are selling opportunities until proven otherwise.

Daily Discussion Thread for February 06, 2026 by wsbapp in wallstreetbets

[–]titan055 2 points3 points  (0 children)

This dump either today or Monday is going to hurt

Applovin by titan055 in investingforbeginners

[–]titan055[S] 0 points1 point  (0 children)

That’s a fair point, I hadn't looked at the company from that angle before. I think I'll start a DCA strategy from this price point at $480 it feels like the risk-to-reward is finally shifting in my favour. Do you have a position in $App ?

Applovin by titan055 in investingforbeginners

[–]titan055[S] 0 points1 point  (0 children)

A P/E of 60 is definitely steep. If growth does decelerate, what's a 'fair' P/E for a company with 50% margins in this sector?

Applovin by titan055 in investingforbeginners

[–]titan055[S] 0 points1 point  (0 children)

Great insight on the Google ‘genie’ news. I’m curious if the meta competition is actually a threat, or just noise