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Public.com presents the rundown, your daily market update in under 10 minutes. My name is Zadud Mani and Today is Friday, February 6th. In today's episode, we'll look at the reasons why bitcoin is crashing. We'll also recap earnings from Amazon and Roblox, then stick around to the end of the show to find out what makes these Winter Olympics so different. We got a great show for you today. Let's go. Stocks were down for the third straight day on Thursday. In fact, yesterday was the worst day of the week with the S P 500 dropping 1.2% and the NASDAQ fell 1.6%. And yesterday wasn't just tech stocks feeling the pain. Almost every sector was in the red. The S P is now negative for the year and, and you can kind of feel the sentiment shifting. Even solid earnings haven't been enough to spark a rally. But you know, as ugly as things are in the stock market, crypto is having a full on meltdown right now. Bitcoin crashed 13% on Thursday, falling below $63,000. In fact, it was the biggest one day drop since the FTX collapse back in November of 2022. And the rest of the crypto market followed suit. Ether, Solana, XRP and others all got hit yesterday. Now prices are starting to recover a bit. This morning, Bitcoin is back in the $66,000 range, but still down around 50% from its October peak of $126,000. Now, multiple reasons for the sell off. For one, crypto trades like a tech stock. And with the tech sector selling off right now, investors are moving money away from risky assets. That's dragging down crypto. But the second factor is forced liquidation. As prices start to fall, investors who borrowed money to buy crypto got margin called and are forced to sell their position. That pushes prices even lower, which triggers even more liquidations and it's a brutal downward spiral. And finally, there is data that suggests that institutional investors might be starting to sell. So when you add all that up, we might be headed for a full blown crypto winter. Another data point to keep in mind. Every time I talk to my mom. Now, the second thing she brings up is a crypto crash right after how our grandkids are doing. So yeah, we've entered the phase in the cycle where grandmas are starting to ask about crypto. So we'll see what happens over the weekend and over the next few weeks. Now, looking ahead to next week, earnings season continues to roll on with some big software companies reporting and we're finally getting the January jobs report on Wednesday, February 11th. It was supposed to come out today, but then it got delayed because the partial government shutdown. So we'll finally get it next week. Maybe a strong jobs report will give the market a boost. So I don't know. We're going to stay on top of it all, break it all down next week. So make sure you guys are subscribed to the podcast and tuning in every day to stay in the loop. Let's run through some headlines, starting with Amazon. Amazon reported earnings last night, and it was a classic case of good numbers, but the stock is still dropping. Let's run through the numbers first. Total revenues came in at $213 billion, topping estimates. On top of that, AWS, which is their cloud business, grew 24% year over year, its fastest growth in more than three years. Advertising continues to be a bigger piece of the pie for Amazon. That grew 23% to over $21 billion in revenue. Amazon is quietly becoming an advertising juggernaut. So despite all those great numbers, why is the stock down 8% today? Well, no surprise here, but it has to do with AI capex. Amazon said they plan to spend $200 billion on capital expenditures in 2026, mostly on AI data centers, chips and cloud infrastructure. That 200 billion number is nearly 60% more than what they did last year and way above the $150 billion that Wall street was expecting. And the reason that investors are freaking out about this is because Amazon generated $140 billion in cash from operations last year and spent nearly all of it on CapEx. Now that they're planning to spend $200 billion on CapEx, that means they're probably going to have to borrow money to cover that gap. So we're now entering the phase of the cycle where debt is starting to come into the picture. And that is what' out investors about the massive AI spending. We saw the same thing happen with Microsoft last week and Google yesterday. Now, CEO Andy Jassy defended the spending on the earnings call, calling it an extraordinary opportunity to grow AWS and Amazon as a whole. And to offset all that spending, Amazon is cutting jobs everywhere else. They've announced 30, 000 layoffs since October. They're also shutting down their Amazon Fresh and Go grocery stores. So, you know, it'll be interesting to see if any of these big tech companies will cut back on capex in future quarters now that the market has sent a clear signal that it's concern to spending. And then if any One of these companies does cut back on Capex. What is that going to do to the overall market? It is a very interesting time in the market right now. Let's shift gears and talk about Nvidia. Because the memory chip shortage that we keep talking about is also impacting Nvidia in an unexpected way. According to the information, Nvidia will delay its next generation gaming chip refresh because of the ongoing memory chip shortage. So that means for the first time in 30 years, Nvidia will go an entire calendar year without releasing a new gaming gpu. In fact, they're going a step further. Nvidia is also slashing the production of its current GeForce RTX 50 series. Now, I know a lot of gamers in my life are very disappointed about this, but Nvidia had to make a choice here because of the memory shortage. They had to choose between the memory chips being used for AI GPUs or gaming GPUs. And not a shocker here, they're picking AI. You know, at this point, gaming GPUs make up less than 10% of Nvidia's revenues. Meanwhile, AI chips have insane demand and insanely high margins and about 65% compared to 40% margins for gaming GPUs. On top of that, Nvidia already dominates high end gaming with their GPUs. There's very little competition from AMD right now, so they're okay with making gamers wait for the next generation GPU. But yeah, you can now add gaming GPUs to the growing list of things impacted by the memory shortage. Let's talk about some stocks making moves today. Shares of Roblox are jumping after the gaming company delivered a blowout quarter and and issued strong guidance. The big headline was bookings, which is a key metric for Roblox that tracks in game spending. Bookings surged 63% year over year in Q4 crushing expectations. And that momentum looks to be carrying over into 2026. For the current quarter, Roblox guided Q1 bookings between 1.69 and $1.74 billion, which came in ahead of Wall street estimates. On top of that, user growth was just as impressive. Roblox reported 144 million daily active users, which is up from a year ago and well above expectations now. Roblox is also making serious changes to his platform, including increased safety measures for kids and also the integration of AI for content creators and game improvements. The market seems to be impressed right now, and shares are up nearly 9% this morning at the time of this recording. Now, on the flip side, shares of Hims and hers got crushed yesterday and they continue to fall this morning after the FDA raised concerns about the company's plans to launch a cheaper version of of Novo Nordisk weight loss pill Wegovy. On Wednesday, HIMS announced that they'd be selling a copycat version of Novo Nordisk weight loss pill wegovy for just $49 a month for the first month and then $99 a month after that. Now, that would be a cheaper price tag than novo Nordisk $149 a month. Well, then on Thursday, the FDA commissioner, Marty McCary, got involved. He said the FDA would take swift actions against companies that mass market illegal copycat drugs. Now, he didn't name Hims specifically, but the timing made it pretty obvious what he was talking about. On top of that, Novo also warned pursue legal and regulatory actions against Hims. And they called the copycat pills to be illegal mass compounding and said they pose serious patient safety risks. Now, Himes has defended themselves, saying they are using a different formulation and that their pills are personalized for each patient, which makes it legal. But the investors weren't buying it. Shares of HIMS were down 5% yesterday, and they're down another 10% this morning. Let's wrap the show with a fun fact. The 2026 Winter Olympics officially kick off today in Italy, and this will be the most geographically spread out Olympics ever. For the first time, there are two host cities, Milan and Cortina, which are separated by 250 miles. But it gets even crazier because events will be spread across 25 venues in four different regions. The opening ceremony is today in Milan and the closing ceremony is going to be in Verona. Now, bonus fun fact. More than 90% of the venues used for the Olympics are already existed or are temporary, which is part of the IOC's push to make the Games cheaper and more sustainable. But all that being said, costs are still climbing. Organizers originally budgeted about $1.3 billion, but that number has now grown to over 1.7 billion plus. Another $4 billion was spent in public infrastructure spending to upgrade transportation and facilities across northern Italy. The good news is the demand seems to be strong, with more than 1 million tickets already sold. And I'm really looking forward to it. I love watching the Olympics. It's great having on in the background in the evening. So ye I can't wait for the next two weeks, especially watching curling. Like if I had to compete in one Olympic sport, curling is the default answer right. Well, all right, guys. That's the rundown for today. That's the rundown for this week. Hope you guys enjoyed today's episode. If you did and you have like five extra seconds, consider giving us a five star rating on Apple, Spotify, YouTube, wherever you listen to your podcast. And if you are listening on Spotify, don't forget to vote in today's Spotify poll. Leave us a comment on Spotify. All that engagement really does help us out and it helps other people find the show. Thank you guys so much for listening, watching, and commenting. Shout out to Mike and Connor for all the work behind the scenes, and we'll see you guys back here tomorrow.