TNB Tech Minute: Nasdaq Falls Again

Summary

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WSJ Tech News Briefing

Episode: TNB Tech Minute: Nasdaq Falls Again

Date: February 4, 2026
Host: Julie Chang

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Episode Overview

This brief Tech Minute provides a rapid but insightful update on major movements in the tech sector, highlighting a notable drop in the Nasdaq, significant earnings results from leading technology companies, investor concerns about artificial intelligence, and industry-specific news regarding software and chip stocks.

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Key Discussion Points & Insights

[00:16] Nasdaq Composite Drop & Tech Stock Performance

• Market Overview:
  The Nasdaq Composite index finished down 1.5%, marking its fourth drop in the past five trading sessions.

• Chip Stocks Under Pressure:
  Chipmakers saw heightened selling, with AMD’s disappointing results as a central driver.

  • AMD: Shares plummeted 17%, the largest single-day drop since 2017.
  • Other Decliners: Palantir, Micron, and AppLovin each fell by 9% or more.

• Underlying Concerns:
  Ongoing worries center around the risk that artificial intelligence could disrupt traditional software and database companies’ business models.

  • "Investors have long harbored concerns that AI will undercut the lucrative business models of companies specializing in code databases and IT." (Julie Chang, 00:44)
  • New tools from Anthropic and other recent AI advancements have intensified skepticism.

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[01:02] Software Stocks' Volatility

• US Software Companies:
  Stocks like Adobe, Intuit, and Workday rebounded slightly, retracing some of Monday’s sharp losses but still under scrutiny.

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[01:15] Alphabet (Google) Q4 Earnings Beat

• Strong Results:
  • Alphabet, Google’s parent company, reported an 18% year-over-year increase in revenue, buoyed by digital advertising and cloud computing.
  • Key Numbers:
    • Sales: Nearly $114 billion, beating analyst expectations
    • Net income: $34.5 billion, up 30%
  • The uptick is attributed to Alphabet’s increased investment in AI across its business divisions.
  • "Google parent Alphabet reported an 18% jump in fourth quarter revenue driven by growth in its digital advertising and cloud computing units as it ramped up spending on AI." (Julie Chang, 01:15)

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[01:40] Snap Q4 Earnings & AI Integration Update

• Snapchat's Parent Company:
  Snap posted positive earnings, with fourth-quarter profits above $45 million—up from $9 million the prior year.

  • Revenue rose 10%, beating analyst forecasts.
  • Advertising sales up 5%, with direct response advertising cited as a growth driver.

• AI Partnership Update:
  An anticipated $400 million deal with Perplexity to integrate its AI answer engine into Snapchat has been delayed, impacting short-term revenue projections.

  • "Snap announced in November that it would integrate Perplexity's AI-powered answer engine into Snapchat, but the $400 million deal has been delayed, impacting first quarter revenue." (Julie Chang, 01:55)

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Notable Quotes & Memorable Moments

• AI’s Potential for Disruption:

  • "Investors have long harbored concerns that AI will undercut the lucrative business models of companies specializing in code databases and IT. But recent advancements, such as new tools from Anthropic, have sharpened those worries." (Julie Chang, 00:44)

• Positive Corporate Surprises:

  • "Sales reached nearly $114 billion ahead of analyst expectations. Net income was $34.5 billion, a 30% increase compared with the same period a year earlier." (Julie Chang, 01:22)

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Timestamps for Important Segments

• [00:16] — Market summary, Nasdaq dip, chip stock declines
• [00:44] — Investor anxiety over AI’s impact on software companies
• [01:15] — Alphabet (Google) Q4 earnings breakdown
• [01:40] — Snap’s Q4 performance and the delayed AI integration

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Closing Note

This concise episode delivers actionable highlights for investors and tech watchers, emphasizing how market sentiment, AI disruption, and quarterly earnings are shaping the current tech landscape.

Transcript

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Here's your afternoon TNB Tech minute for Wednesday, February 4th. I'm Julie Chang for the Wall Street Journal. The Nasdaq composite fell today as chip stocks came under fresh selling pressure and concerns lingered about potential AI disruption to softW. The tech heavy index finished 1.5% lower, its fourth down session in five trading days. Disappointing results from chip maker AMD sent its stock down 17%, its biggest pullback since 2017. Palantir, Micron and AppLovin all fell 9% or more. Some U.S. software companies such as Adobe, Intuit and Workday retraced some of their sharp Monday declines. Investors have long harbored concerns that AI will undercut the lucrative business models of companies specializing in code databases and it. But recent advancements, such as new tools from Anthropic have sharpened those worries in earnings. Google parent Alphabet reported an 18% jump in fourth quarter revenue driven by growth in its digital advertising and cloud computing units as it ramped up. Spending on AI. Sales reached nearly $114 billion ahead of analyst expectations. Net income was $34.5 billion, a 30% increase compared with the same period a year earlier. Finally, Snap logged higher revenue in the fourth quarter. The company behind Snapchat posted a profit of over $45 million, compared with about $9 million a year earlier. Revenue rose 10%, beating analyst forecasts, and advertising sales rose 5%, driven by growth in direct response advertising. Snap announced in November that it would integrate Perplexity's AI powered answer engine into Snapchat, but the $400 million deal has been delayed, impacting first quarter reven. And that's it for your TMB tech minutes. Tune in tomorrow morning for another quick tech update.

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