WSJ What’s News: "Why AI Fears Are Suddenly Hitting Tech Stocks"

Date: February 4, 2026
Host: Luke Vargas (Wall Street Journal)
Guests: Hannah Miao (Journal Tech Reporter), David Wehner (Hurt on The Street), Alex Osipovich (Markets Reporter), Yoko Kubota (Beijing Correspondent)

Episode Overview

This episode explores the sudden downturn in tech and software stocks due to rapid advancements in artificial intelligence, and unpacks how evolving AI capabilities are unsettling markets once seen as relatively stable. In addition, the show covers slumping weight-loss drug sales amid price wars, Bitcoin’s extended slide, political developments involving President Trump and Colombia, and new Chinese regulations on EV technology.

Key Discussion Points & Insights

1. AI Fears Spark Sell-Off in Software Stocks

• [00:51-04:18]

  • Surprising losses for leading software companies (Adobe, Salesforce, LegalZoom, PayPal, Expedia, Equifax) linked to breakthroughs in generative AI—especially advances from Anthropic and OpenAI.
  • Hannah Miao: Anthropic's Claude model ("vibe coding") allows non-programmers to create their own tools, threatening the business models of traditional software providers.
  • AI tools encroaching on specialized domains, notably legal tech, catalyzed the broader sell-off.
  • Declines aren't limited to software companies: investment firms with heavy exposure (KKR, Blue Owl, Blackstone) also took hits (03:00).

  Notable Quote:
  "It's really kind of called into question the business models of these software companies...Anthropic announced it was adding legal tools to its cowork assistant, and that could help automate a number of legal, drafting, and research tasks. So that...lit the spark for the broader sell off in the software market."
  — Hannah Miao [02:21]

  Alternate Views Debated:

  • Some argue software companies maintain an edge through trusted data management and client relationships.
  • Concerns persist about security and trust with “vibe coded” tools handling sensitive info.

2. Hyperscalers and AI Adoption Challenges

• [04:19-05:20]

  • Even tech giants aren’t immune: Microsoft’s stock fell nearly 3% due to fears that AI assistants like Copilot might reduce the need for enterprise subscriptions.
  • Data from Recon Analytics: Only 10% usage rates of Copilot seats in some companies; meanwhile, Google’s Gemini is rising in popularity.

  Notable Quote:
  "Subscribers who use Microsoft’s Copilot as their primary option almost halved in the last six months, while Google's Gemini gained in popularity."
  — Luke Vargas [04:27]

3. Crypto Value Plunge & Leveraged Firms

• [05:20-06:02]

  • Bitcoin is down 40% since its October peak, straining platforms like Coinbase, Robinhood, and companies heavily invested in Bitcoin, e.g., Michael Saylor's MicroStrategy.
  • If firms under financial stress begin liquidating cryptocurrency, it could trigger further downward price spirals.

  Notable Quote:
  "If they start selling, that'll put downward pressure on the price of whatever cryptocurrency they're holding, which would cause them...to sell even more."
  — Alex Osipovich [05:54]

4. Weight-Loss Drug Giants Face Price Wars

• [06:02-08:33]

  • Novo Nordisk shares fall as the market for GLP-1 weight loss drugs (Ozempic, Wegovy) faces intense price pressure, especially from US rival Eli Lilly.
  • Price reductions (from ~$1,000/month to $149/month for new pill forms) are eroding revenue even as demand surges.

  Notable Quote:
  "There's surging demand for these drugs, but the concern is, is that the price cuts are sort of working against or counteracting that growth in volume..."
  — David Wehner [07:18]

  • Tablets (instead of injections) seen as a breakthrough, but only massive increase in prescriptions could offset the price cuts.

5. US Politics: Trump Pushes for Nationalized Voting

• [09:24-09:50]

  • President Trump, with Congressional Republicans, calls for nationalizing US elections, criticizes states as havens of “corruption,” without providing evidence.
  • Both Democrats and many Republicans resist the idea.

  Notable Quote:
  "I want to see elections be honest. And if a state can't run an election, I think the people behind me should do something about."
  — Donald Trump [09:43]

6. US-Colombia Relations and Trade Reset

• [09:50-10:49]
  • Diplomatic thaw as Trump welcomes Colombian President Petro to the White House after a year of tense relations.
  • Meeting described as "optimistic and positive." (Petro reportedly leaves with a MAGA hat.)

7. China Bans Retractable EV Door Handles

• [11:02-11:42]

  • Chinese regulators prohibit retractable door handles in new EVs after accidents raised safety concerns.
  • New rules require all cars to have traditional handles that can be mechanically opened, affecting global car design trends.

  Notable Quote:
  "It really shows how China has become not only a leader in EVs, but also a laboratory of experimentation when it comes to dealing with associated technologies."
  — Yoko Kubota [00:41, 11:32]

Memorable Moments & Timestamps

• AI Stock Sell-Off Deep Dive: [01:48-04:18]
• Microsoft's AI User Data Revealed: [04:19-05:20]
• Crypto Market’s Downward Spiral Explained: [05:20-06:02]
• Weight-Loss Drugs: Price War and Future: [06:40-08:33]
• Trump on Election Law Changes: [09:24-09:50]
• China’s Novel EV Regulation: [11:02-11:42]

Episode Tone & Language

The show maintains a brisk, fact-focused, market-savvy tone—balancing urgency (as in stock/crypto drops) with measured analysis (debates around AI moats and pharma pricing). Tech industry commentary features clear explanations for general business audiences, while economic and political news is delivered neutrally but with context for the stakes.

Conclusion

A snapshot of a week where AI disruption upends market assumptions, big pharma faces the realities of price competition, iconic tech stocks are punished, and unexpected regulatory moves abroad could have global consequences for investors and industry players.