Podcast Summary: The Rundown

Episode: Google Crushes Earnings but Tech Stocks Keep Sliding
Host: Zaid Admani
Date: February 5, 2026

Episode Overview

The episode breaks down the seeming paradox of soaring tech earnings and declining stock prices, focusing on Google's blockbuster results, recent market movements, earnings from Snap and Qualcomm, and finishes with a quirky look at Nintendo’s new (old) VR headset. Host Zaid Admani explains how sector rotation and investor concerns about capex are shaping markets, with key insights into how the narrative in tech investing has shifted in early 2026.

Key Discussion Points & Insights

1. Market Health Despite the Drop (00:10–02:15)

• Market Recap: Tech stocks led the market lower for the second consecutive day; Nasdaq down 1.8%, S&P 500 down 0.5%.
• Context: Despite tech taking hits, the equal weight S&P 500 index is up 4% YTD and at all-time highs.
• Insight:

  “What we’re seeing is a classic rotation out of tech and into other sectors... Historically, this kind of market breadth is actually a healthy sign.” — Zaid Admani [01:00]

• Key Point: Criticism in recent years was of a "top-heavy" market, but that's finally changing as more sectors participate in gains.

2. Upcoming Earnings to Watch (02:16–02:40)

• Amazon will report after the bell, key for consumer/cloud trends.
• Major software names like Monday.com and Datadog report next week, providing further clarity on software sector health.

3. Google Earnings Deep Dive (02:41–07:12)

• Earnings Highlights:
  • Q4 revenues up 18% to $114B; Q4 profit up 30% to $34.5B.
  • 2025 full-year revenue crosses $400B for the first time.
  • Search & ad business: up 17% YoY to $63B in Q4.
  • Google Cloud: Q4 revenue $17.7B, up 48% YoY.
    • “Cloud margins are also improving... jumped to 30%... the cloud business is finally a real profitable sector…” [04:30]
  • Gemini AI app: 750M MAUs, up from 150M last quarter.
• Stock Reaction: Despite monster growth, stock is down ~5% due to capex guidance.
• CapEx Details: Google plans to double 2026 capex to $180B (vs. $120B expected), to fuel AI investment.
  • CEO Sundar Pichai: “AI demand is there and that Google needs to build more capacity to meet the demand.” [06:15]
  • “They’re literally spending all of their cash on AI infrastructure.” [06:51]
• Market Sentiment: High capex spooks investors; narrative has shifted such that even strong results aren’t enough if future spending is aggressive.
• Comparison: Microsoft faced similar skepticism last week due to big capex plans.

4. SpaceX IPO Plans & Index Inclusion Tactics (07:13–09:02)

• News: SpaceX plans a 2026 IPO with $1T+ valuation. They’re lobbying to get fast-tracked into major indices like the Nasdaq 100.
• Reason: Early index inclusion would guarantee massive ETF/index fund inflows, supporting the stock price post-IPO and avoiding the IPO drop seen with other tech names (e.g., Figma).
• Quote:

  “Elon and his team are the masters of financial engineering.” [09:00]

• New Nasdaq Rule: Proposed fast track for mega-cap IPOs; SpaceX would easily qualify.

5. Earnings Movers: Snap and Qualcomm (09:03–11:39)

Snap

• Surprise: Snap posts a rare profit ($45M in Q4), with revenue up 10% YoY.
• Reason: Profitability achieved by cutting marketing spend, which helped margins.
• Trade-off: Daily active users fell by 3M, missing estimates.
• Market Reaction:

  “Despite the drop in users, I think investors are loving the fact that Snap actually made some profit.” [10:40]

  • Stock up 7% post-earnings, settling to ~2% up at time of recording.

Qualcomm

• Beat on Earnings, But…: Guidance is weak due to supply constraints, especially in memory chips, which are being snapped up by AI data centers.
• Result: Phone/PC makers cut production, reducing demand for Qualcomm chips.
  • “That’s why Qualcomm stock is down around 10% this morning...” [11:20]
• Bigger Trend: Ongoing memory chip shortage is becoming a growing concern across the tech industry.

6. Nintendo’s VR Headset: Return of the Virtual Boy (11:40–13:05)

• Announcement: Nintendo will relaunch the Virtual Boy as a $100 accessory for Switch on February 17.
• Host Reaction:

  “Nobody’s gonna buy this, right?... I’ve been saying this for years now, nobody wants a thing on their face. VR is not going to happen.” [12:52]

• Fun Fact: The original Virtual Boy was a flop in 1995, mostly known for eye strain and poor sales.

Notable Quotes & Memorable Moments

• On Market Rotation:
  “This kind of market breadth is actually a healthy sign.” — Zaid Admani [01:00]
• Google’s Capex Spending:
  “They’re literally spending all of their cash on AI infrastructure.” [06:51]
• On Snap’s Profit:
  “Despite the drop in users, I think investors are loving the fact that Snap actually made some profit.” [10:40]
• On SpaceX's Ambitious IPO Plans:
  “Elon and his team are the masters of financial engineering.” [09:00]
• On Nintendo & VR:
  “Nobody wants a thing on their face. VR is not going to happen.” [12:52]

Key Timestamps

• 00:10 — Market pullback, sector rotation, health of US indexes
• 02:41 — Google earnings breakdown: growth, cloud, AI, capex concerns
• 07:13 — SpaceX IPO & index inclusion strategies
• 09:03 — Snap earnings: rare profit, market reaction, user decline
• 10:45 — Qualcomm earnings: supply constraints, stock drop, memory chip shortage
• 11:40 — Nintendo’s VR throwback, skepticism on VR market

Episode Tone

• Upbeat, knowledgeable, slightly skeptical, and always engaging. Zaid’s delivery is informative with a conversational, sometimes irreverent touch, especially when discussing industry fads like VR.

For daily, concise updates and insightful market context, this episode distills complex headlines into practical takeaways—especially on why strong earnings aren't always enough, and how investor narratives can overpower even the most impressive quarterly numbers.