What’s News in Markets: Gartner Woes, Super Micro Surge, Coinbase Volatility

Summary

WSJ What’s News in Markets: Gartner Woes, Super Micro Surge, Coinbase Volatility

Date: February 7, 2026
Host: Jack Pitcher for The Wall Street Journal

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Episode Overview

This week’s “What’s News in Markets” recaps one of the most volatile market weeks in the past year, driven especially by rapid advancements in artificial intelligence (AI) and their disruptive force on traditional software and research firms. The episode highlights the stark divergence in performance among major indexes, the fall of IT advisory giant Gartner, the meteoric rise of Super Microcomputer amid the AI buildout, and sustained volatility in crypto-related stocks, notably Coinbase, following a sharp decline in Bitcoin prices.

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Key Discussion Points and Insights

1. Volatile Week Driven by AI Fears

[00:28-01:49]

• AI Disruption Takes Center Stage: Rapid developments in AI—particularly new features from Anthropic’s Claude AI—spooked investors, especially those with stakes in software development, data, and research companies.
• Legal Research Automation: Claude’s ability to assist with legal research and review prompted a sector-wide selloff in companies specializing in those areas.
• Major Stock Moves:
  • Software companies experienced their sharpest single-day declines since the pandemic.
  • Despite some recovery from dip-buyers late in the week, tech-heavy indexes suffered significant losses.
• Index Performance:
  • Nasdaq Composite: Dropped 1.8%
  • Dow Jones Industrial Average: Rose 2.5%, closing above the 50,000 mark—a record high, owing to less software exposure.
  • S&P 500: Slight 0.1% decline

Notable Quote:

“February opened with fireworks, with markets posting one of their most volatile weeks of the last year. The driver: Rapid advancements in AI are making investors question some long held assumptions.”
—Jack Pitcher [00:32]

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2. Gartner’s Plunge: The AI Threat to Data & Research

[01:50-02:38]

• Earnings and Guidance Disappoint: Gartner, a heavyweight in the IT research and advisory space, reported disappointing Q4 earnings and a lackluster outlook for 2026.
• AI Concerns Amplified: The fear that generative AI will displace demand for Gartner’s core product—data and research reports—has pressured shares all year. This week’s earnings reinforced those anxieties.
• Stock Impact:
  • Shares fell 21% in a single day, finished the week down 25%.
  • Overall, Gartner’s stock has lost more than 70% since last year’s peak.

Notable Quote:

“Not only did the company report lower fourth quarter earnings on Tuesday, its forecast for the year also fell below Wall Street’s expectations. Concerns that generative AI will reduce demand for Gartner’s data and research reports has weighed on its shares for a year.”
—Jack Pitcher [01:56]

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3. Super Microcomputer: Riding the AI Infrastructure Boom

[02:39-03:08]

• Strong Earnings & Guidance: Server maker Super Microcomputer announced its sales doubled year-over-year in Q2, and its Q3 forecast exceeded analyst expectations.
• AI Buildout Tailwind: The CEO attributed continued robust performance to surging demand for AI infrastructure—servers, chips, and memory modules powering next-generation AI models.
• Stock Impact: Shares surged 18% this week, making Super Micro one of the S&P 500’s top performers.

Notable Quote:

“The company’s CEO also told investors that AI infrastructure demand is powering its strong growth. Super Micro shares rallied 18% on the week, putting them among the S&P 500’s top performers.”
—Jack Pitcher [03:05]

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4. Crypto and Coinbase: Volatility Persists

[03:09-04:01]

• Bitcoin Rout: Bitcoin fell below $64,000 on Thursday—almost 50% off last October’s peak.
• Market Factors: The drop is attributed to investors pulling out of risky assets, the unwinding of leveraged bitcoin positions, and a dollar rally after President Trump nominated Kevin Warsh for Fed Chair.
• Impact on Related Stocks:
  • Coinbase: Shares dropped 15%.
  • Strategy (MicroStrategy): Shares fell 10% for the week, and are down 60% year-over-year.
• Sentiment: Crypto-linked equities are particularly sensitive to broader macro and regulatory developments.

Notable Quote:

“Shares of Coinbase, the largest crypto exchange in the United States, fell along with bitcoin this week, shedding around 15%.”
—Jack Pitcher [03:51]

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Memorable Moments & Quotes

• On the week’s divergence:

  “The tech focused sell off caused an unusually large divergence among the major indexes for the week.”
  —Jack Pitcher [01:22]

• On Gartner’s implosion:

  “Since hitting an all time high roughly a year ago, Gartner shares have dropped more than 70%.”
  —Jack Pitcher [02:28]

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Timestamps for Important Segments

• Major market drivers & AI-induced volatility: [00:28-01:49]
• Gartner earnings and AI pressures: [01:50-02:38]
• Super Microcomputer earnings & AI infrastructure growth: [02:39-03:08]
• Crypto rout and Coinbase/Sector impacts: [03:09-04:01]

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Tone & Style

The episode maintains an analytical, fast-paced tone, focused on clarity and practical takeaways for listeners aiming to grasp weekly market drivers and sectoral shifts. Jack Pitcher deploys concise explanations and key statistics for market moves, keeping language professional but accessible.

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Summary

This episode underscores a pivotal shift: AI’s rapid advancement is unsettling traditional industry players, while fueling a surge in demand for infrastructure. Markets remain volatile, with clear sectoral winners and losers. Meanwhile, crypto markets face renewed downswing amid macro and regulatory headwinds. For investors, the landscape is being rapidly redrawn by technological disruption and policy shifts.

Transcript

[A]

This episode is sponsored by Morgan Stanley's Thoughts on the Market. Today's Financial markets move fast. Morgan Stanley moves faster with their daily podcast, Thoughts on the Market. Thoughts on the Market covers daily trends across the global investment landscape with actionable insights from Morgan Stanley's leading economists and strategists. And with most episodes under five minutes long, staying informed has never been easier. Listen and subscribe to Thoughts on the Market wherever you get your podcasts.

[B]

Foreign hey listeners, it's Saturday, February 7th. I'm Jack Pitcher for the Wall Street Journal and this is what's News in Markets. Our look at the biggest stock moves of the week and the news that drove them. Let's get to it. February opened with fireworks, with markets posting one of their most volatile weeks of the last year. The driver Rapid advancements in AI are making investors question some long held assumptions. Software developers, data and research companies and IT services providers all got clobbered this week on concerns that AI is a threat to their businesses. The sell off was most pronounced on Tuesday when Wall street analysts zoomed in on new features from Anthropic's AI model Claude. Its ability to assist with legal research and review prompted investors to dump shares of companies that focus on those areas. The sell off quickly spread to software companies with several recording their sharpest single day stock declines since the pandemic. Investors buying the dip helped stocks gain back some ground on Friday, but the tech focused sell off caused an unusually large divergence among the major indexes for the week. The tech heavy Nasdaq composite dropped 1.8% while the Dow Jones industrial average, which has less software exposure, rose 2.5% to close at a record high above the 50,000 mark. The broad based S&P 500 inched 0.1% lower. Lets turn to one of the S&P 500's biggest losers for the week. Gartner, a giant in the IT research and advisory industry, fell victim to the AI sell off and its own quarterly results. Not only did the company report lower fourth quarter earnings on Tuesday, its forecast for the year also fell below Wall Street's expectations. Concerns that generative AI will reduce demand for Gartner's data and research reports has weighed on its shares for a year. Tuesday's results only reinforce those worries, sending shares down 21% for the day. For the week, the Stock is down 25% and since hitting an all time high roughly a year ago, Gartner shares have dropped more than 70%. While Wall street is reassessing its software exposure, it remains bullish on the so called picks and shovels of the AI infrastructure buildout. Shares of companies making computer chips, servers and memory have performed well so far this year as big tech firms continue to increase investment in the data centers needed to power AI models. Server maker Super Microcomputer found itself in the spotlight this week after it reported a twofold increase in sales in the second quarter and offered a third quarter forecast that topped expectations. The company's CEO also told investors that AI infrastructure demand is powering its strong growth. Super Micro shares rallied 18% on the week, putting them among the S&P 500's top performers. And finally, an ugly week for cryptocurrencies hit the shares of several crypto related stocks. Bitcoin fell below $64,000 on Thursday, a nearly 50% drop from its peak price last October. What's behind the decline? Skittish investors dumping riskier assets, the unwinding of leveraged bitcoin bets and a rally in the dollar since President Trump picked Kevin Warsh for FedShare last week. Shares of Coinbase, the largest crypto exchange in the United States, fell along with bitcoin this week, shedding around 15%. Strategy, a software company that in recent years became one of the world's biggest buyers of Bitcoin, fell 10% this week and is down around 60% over the past year. And now you know what's news in markets this week. Today's show was produced by Alexis Moore with supervising producer Jana Herron. I'm Jack Pitcher. Have a great weekend and see you next Saturday.

[C]

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