CNBC Halftime Report Podcast Summary

Episode: Trading the Tech Takedown
Date: February 17, 2026
Host: Scott Wapner
Investment Committee: Joe Terranova, Jenny Harrington, Jim Leventhal, Josh Brown

Episode Overview

This episode of CNBC’s "Halftime Report" dives deep into the ongoing "Tech Takedown," highlighting the recent underperformance of technology stocks—specifically the Nasdaq's five-week losing streak—and exploring whether the market is facing a broad correction or simply a sector rotation. The investment committee discusses capital expenditure (capex) among mega-cap tech firms, the future of AI-driven disruption, changing investor behaviors, and which sectors and stocks offer resilience or risk during this volatile period.

Key Discussion Points and Insights

1. Market Volatility and Tech's Weakness

• Current Market Landscape:
  Tech is under pressure, with the Nasdaq down for five consecutive weeks (longest streak since May 2022). Software is down 23% year-to-date; mega caps ("Mag 7") are down 7.5%.
• Rotation or Correction?
  • Jenny Harrington notes, “It feels to me right now like the rotation might continue to intensify where you end up the year with the market in this really neutral-ish, lackluster, ho hum territory.” (03:36)
  • Sector performance varies dramatically: energy (+20%), value (+7%), growth (–3%), tech (–2%).

2. Is This a Broad Correction or Sector Rotation?

• Broader Market Drivers:
  • Despite tech weakness, value and energy are up, and defensive/durable sectors are outperforming.
  • Scott Wapner cites Morgan Stanley and UBS notes suggesting broader sector strength could keep the rally alive despite tech's drag. (04:12)

3. Why Is Tech Suffering?

• Earnings & Valuations:
  Negative earnings surprises from companies tied to core U.S. consumer and industrial activity raise concerns.
• Overspending & Capex in Tech:
  • “Mega cap spending... the numbers continue to get larger, but it’s not like the businesses are suffering,” says Scott, mentioning 18% forward revenue growth at a multi-decade high. (06:30)
  • Josh Brown reflects on the mentality in Silicon Valley: “Being terrified in that context, a Silicon Valley context, is not ‘let’s spend less and hunker down.’ It’s the opposite. Let’s make sure we don’t miss the moment. Only the paranoid survive.” (10:00)

4. AI Disruption and Competitive Threats

• Mega Cap Tech and AI:
  • Josh warns, "There's a gigantic meteor heading toward the AI theme... Apple is coming. Agentic Siri is coming." (13:45)
    He predicts Apple's entry will reshape consumer-facing AI, pressuring hyperscalers and software firms.
  • Discussion about Capex levels: Microsoft, Amazon, Alphabet ramping spending, while Apple reduces it but may soon leap ahead with Agentic Siri.

5. Sector Winners: Rotation into Dividends and Real Assets

• Dividend Stocks Outperform:
  • SDY dividend ETF hits a record.
  • Jenny Harrington highlights hard asset, low obsolescence (“HALO”) names: "Amcor, Bristol Myers, Dominion, Enterprise Products, Kimberly Clark... they all have decent earnings and healthy yields, and trade at much lower valuations versus tech." (29:52)
• Real Estate (REITs) Strength:
  • Josh Brown emphasizes quality REITs: Realty Income (“the monthly dividend company”), Iron Mountain, Prologis, and Simon Property, noting their defensive, durable yields and strong charts (35:43).

6. Retail Investing Behavior

• Retail investors are "buying the dip," contrasting with more short-term, systematic trading at the institutional level.
• Joe notes: "Retail is looking at moments where they believe they see a decline in... equity names that... over the long term are going to have the appreciation. On the other side of that, institutions have become more short term oriented." (23:36)

7. Debate Over AI Immunity and Cybersecurity

• Cybersecurity stocks, thought to be AI-proof, have also sold off sharply (e.g., CrowdStrike, Palo Alto Networks).
• Josh Brown: "If you’re in the software basket, there’s going to be selling pressure... but once the dust settles, people come to their senses." (19:49)
• Jenny raises concerns about disruption: "I can imagine a world where... small businesses say, hey, I can build [security] on my own..." (21:45)
  Jim Leventhal counters: the main risk is new types of threats, making cash flows/multiples less clear but likely a “buying opportunity."

8. Specific Stocks Discussed

• Apple:
  Joe Terranova details a quick buy-and-stop-loss trade around a momentum signal (16:20–16:54).
• Dividend Picks:
  Amcor, Bristol Myers, Dominion, Enterprise Products, Kimberly Clark (29:57).
• REITs:
  Realty Income, Iron Mountain, Prologis, Simon Property, Welltower (35:43–38:44).
• Carvana:
  Joe discusses potential in Carvana amidst recent controversy and market suspicion (25:51).
• Activism:
  Jenny speaks on recent activist pushes in TripAdvisor and Fiserv, two of her holdings, highlighting their appeal to activists due to high free cash flow yield and low valuation (44:44).

9. Fed and Macro Backdrop

• Fed Governor Michael Barr signals rates likely to remain steady; inflation concerns persist, but AI-related investment may raise the neutral rate.
• Markets are choppy; the "broadening thesis" (more sectors/companies participating in gains) remains but is fragile (39:31–40:40).

Memorable Quotes & Timestamps

• On Tech Rotation:
  “It feels to me right now like the rotation might continue to intensify where you end up the year with the market in this really neutral-ish, lackluster, ho hum territory.” — Jenny Harrington [03:36]

• On Mega Cap Tech’s Capex:
  “They're spending because of the perceived demand. The backlog orders are well over $1 trillion.” — Joe Terranova [12:19]

• On Silicon Valley Mindset:
  “Being terrified in that context, a Silicon Valley context, is not ‘let’s spend less and hunker down.’ It's the opposite. Let's make sure we don't miss the moment.” — Josh Brown [10:00]

• On AI Threats:
  "There's a gigantic meteor heading toward the AI theme... Apple is coming. Agentic Siri is coming. Not Siri the Chat bot. Agentic Siri." — Josh Brown [13:45]

• On Retail vs. Institutional Behavior:
  “Institutions have become far more short term in what their intentions are in the market.” — Joe Terranova [23:36]

• On Dividend Stock Philosophy:
  “If humanity survives AI, we're going to be using these products throughout the next 10, 15, 20 years. So nothing too exciting, just slow and steady.” — Jenny Harrington [31:18]

• On Cybersecurity:
  “You can’t imagine small businesses building their own cybersecurity out of Scotch Tape?”
  “Absolutely, they could... and anything can be done now.” — Jenny Harrington & Josh Brown [21:45–21:52]

Important Segments & Timestamps

• Market & Tech Context: [00:53–03:36]
• Rotation Discussion: [03:36–05:41]
• Mega Cap Tech/A.I. Spending: [09:28–13:00]
• Apple/Agentic Siri / AI Disruption: [13:45–16:41]
• Software & Cybersecurity Selloff: [18:42–23:00]
• Retail vs. Institutional Flows: [23:00–25:10]
• Dividend Stock Picks: [29:09–31:18]
• REIT/Property Best Stocks: [35:32–38:44]
• Fed/Market Macro Discussion: [39:31–44:17]
• Activism in TripAdvisor & Fiserv: [44:44]
• Final Trades: [46:27]

Notable Stock & Sector Mentions

• Dividend Stocks: Amcor, Bristol Myers, Dominion, Enterprise Products, Kimberly Clark, Devon Energy
• REITs: Realty Income (O), Iron Mountain (IRM), Prologis (PLD), Simon Property (SPG), Welltower
• Tech/Mega Cap: Microsoft, Apple, Amazon, Google, Meta
• Software/Cybersecurity: CrowdStrike, Palo Alto Networks, Zscaler, Checkpoint
• Other Individual Names: TripAdvisor, Fiserv, Carvana, Walmart, Ulta Beauty, Vici Properties, AstraZeneca

Tone & Style

The tone remains lively, direct, and analytical, matching CNBC’s blend of sharp commentary and quick-fire debate. The host and panelists are candid, bringing both skepticism and measured optimism to their analyses, with memorable banter around investing styles, market behavior, and headline risks.

In Summary

"Trading the Tech Takedown" offers a candid and detailed look at the shifting market dynamics as mega-cap tech stumbles, sector rotation gathers pace, and investors debate the long-term winners and losers amid AI transformation and macro uncertainty. Amidst the volatility, the panel spotlights the resurgence of value, hard-asset stocks, and REITs, and highlights the adaptive strategies necessary for navigating today’s market.

This episode is a must-listen for investors eager to understand how market veterans are positioning themselves in an increasingly AI-disrupted, post-momentum era.