Thursday, February 5, 2026

AI (probably) won’t kill all the stonks

I'm Justin Fox and this is Bloomberg Opinion Today, a regime-cum-sensibility of Bloomberg Opinion's opinions. Sign up here.

Today's Agenda

Google isn't overspending.
It's a rotation, not a selloff.
The Age of Mandelson may be over.
Tough times for black-market oil.

AI Won't Kill All the Stonks

The rise of generative artificial intelligence looks to be a significant economic development, one that investors have reason to be excited about. So, uh, why have markets been tanking this week? There seem to be two main explanations:

It's hard to know which corporations will profit from AI and which will be wiped out by it.
The upkeep sure seems to cost a lot of money.

Dave Lee is of the opinion that maybe the stock market is overdoing the worries a little. (Is that something the stock market has been known to do? Yes.) In a column yesterday, he describes as "highly premature" the sudden consensus that software companies are toast because of Anthropic PBC's newest software-supplanting offering (about which Parmy Olson has more to say). Today he digs into Google parent Alphabet Inc.'s earnings report and its prediction that 2026 capital expenditures will be "in the range of $175 to $185 billion," way above the $119.5 billion projected by the Bloomberg analyst consensus.

What Dave sees is a company that "has turned what looked like a mortal threat — people using AI instead of Google search" into what Alphabet Chief Executive Officer Sundar Pichai calls an "expansionary moment." Google's gigantic search business is growing fast, and Google Cloud, through which its sells AI technology to other companies, is growing even faster. For now, Dave argues, Alphabet looks to be one of the companies on AI's good side — and investors kinda-sorta agree, with its stock down early today like just about every tech stock, but nothing like last week's 10% one-day crash at Microsoft Corp.

Bonus stonks reading: "This is still very much a rotation, not a selloff," writes Richard Abbey. Big, expensive tech stocks have been treading water for a while. Smaller, cheaper, mostly non-tech stocks have been doing better.

What Is a Peter Mandelson?

Those of us not from the UK (and probably some people who are) have been wondering for several decades what exactly this guy Peter Mandelson does and why he keeps returning to positions of power. A TV producer who became a Labour Party spin doctor, cabinet minister and, most recently, ambassador to the US, Mandelson has frequently been caught up in controversy over the years, but somehow always landed on his feet.

Now Mandelson's relationship with sexual predator Jeffrey Epstein has its own Wikipedia page and police are looking into whether he provided market-sensitive information to Epstein during the financial crisis, prompting Adrian Wooldridge to wonder if the "Age of Mandelson" may finally be over.

But, um, what was the Age of Mandelson? Adrian says the "regime-cum-sensibility" had three pillars:

Bobo-ism — that is, "a combination of bourgeois and bohemian values" (in possibly related news, "Bobo" coiner David Brooks has just left the New York Times).
Cosmopolitanism.
Spin-doctoring.

I mean, I can think of more oppressive regimes than that. But like Adrian, I too cringe when I see (and smell) people smoking weed on the sidewalk at 9 a.m. If that's Bobo-ism, then I say good riddance.

Another curious thing is that Peter Mandelson is not Mr. Mandelson, he's Baron Mandelson, and it would take an act of Parliament to strip him of that title. Matthew Brooker says the Baron Mandelson predicament is just the latest in a series of embarrassments stemming from a system in which prime ministers can bestow peerages on whomever they choose. "The obvious answer is to outsource this task to an independent body that would properly vet prospective appointees," he concludes.

Telltale Charts

These are tough times for black-market Iranian and Russian oil. It's not so much that US and European sanctions and political pressure are becoming more effective, writes Javier Blas. It's that the non-sanctioned oil is so cheap that it doesn't really pay to break the rules.

It's been very cold lately in much of the US. Does that mean climate change is a hoax? No, last month was the fifth-warmest January on record worldwide. Mark Gongloff observes that, overall, damage from winter weather in the US shows no clear trend since 1980 — although it was especially bad in 2021 and will be again this year.

ICYMI

Bitcoin had a bad day.

New Anthropic model does financial research.

Kickers

Sir Ian McKellen as Sir Thomas More.

The CIA has had it with facts.

Even with a torn ACL, Lindsey Vonn can lift.

Notes: Please send black-market oil and feedback to Justin Fox at justinfox@bloomberg.net.

Follow Us

Like getting this newsletter? Subscribe to Bloomberg.com for unlimited access to trusted, data-driven journalism and subscriber-only insights.

Before it's here, it's on the Bloomberg Terminal. Find out more about how the Terminal delivers information and analysis that financial professionals can't find anywhere else. Learn more.

Want to sponsor this newsletter? Get in touch here.

You received this message because you are subscribed to Bloomberg's Opinion Today newsletter. If a friend forwarded you this message, sign up here to get it in your inbox.

Unsubscribe
Bloomberg.com
Contact Us

Bloomberg L.P.
731 Lexington Avenue,
New York, NY 10022

The Sector Reversal Hiding in Plain Sight

The Sector Reversal Hiding in Plain Sight

by Blake Young

Breakout traders are getting destroyed right now. They see price push to a new high, they jump in, and then the market reverses and stops them out.

They flip short. Another reversal. Another stop.

The S&P 500 just confirmed a double top and cleared the lows that had held since October. Consumer staples gapped up and closed down.

Technology is clinging to support. Across the board, traders who rely on price action alone are getting whipsawed.

The problem is not timing. The problem is depth.

Most chart patterns tell you what already happened. The setups that matter most tell you what is about to happen, and they show up in the data before they show up in price.

That is exactly what Deep Sonar was built to uncover. It is the method behind the $3,300+ TSM capture, the $3,900+ PLTR run, and the 190% CHWY return on defined risk.

Tonight at 7PM EST, I am pulling back the curtain on how it works. New material. One night only. Free.

Register for Deep Sonar Uncovered

Right now, one sector is flashing the clearest reversal signal I have seen in months.

Let me show you exactly what is forming and why it matters.

Disclaimer: Neither TheoTrade.com or any of its officers, directors, employees, other personnel, representatives, agents or independent contractors is, in such capacities, a licensed financial adviser, registered investment adviser, registered broker-dealer or FINRA |SIPC |NFA-member firm. TheoTrade does not provide investment or financial advice or make investment recommendations. TheoTrade is not in the business of transacting trades, nor does TheoTrade agree to direct your brokerage accounts or give trading advice tailored to your particular situation. Nothing contained in our content constitutes a solicitation, recommendation, promotion, or endorsement of any particular security, other investment product, transaction or investment.Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Past Performance is not necessarily indicative of future results.

TheoTrade

PO Box 24790 Christiansted, Virgin Islands 00824
1 (800) 256-8876

support@theotrade.com

theotrade.com

Want to change how you receive these emails?

You can Update your preferences

Update: Authorization (You're In)

Header

Dear Bleeding Edge Reader,

You're in!

This message is to inform you that, as a The Bleeding Edge reader, your seat has been saved for Larry Benedict's upcoming free broadcast: Wall Street Money Calls.

(You've been authorized to attend for free. To confirm you're attending, simply click here now.)
(When you click the link, your email address will automatically be added to Larry's guest list)

Larry Benedict is one of the most successful hedge fund managers of his generation. Barron's ranked his former fund – Banyan Capital – in the top 1% worldwide.

From 1990 to 2010, Larry didn't have a single losing year. Twenty consecutive years of profits.

Now, on Wednesday, February 11, at 8 p.m. ET, Larry is going to reveal the straightforward 3-step strategy behind that extraordinary track record.

It comes down to something Larry calls "Wall Street Money Calls."

In short: The SEC requires the CEOs of America's biggest companies to get on phone calls and reveal the truth about their businesses. Anyone can listen in. But most people don't know what to listen FOR.

Larry does. Over 40 years, he's developed eight specific signals he listens for on every call.

These signals tell Larry exactly when a stock is about to make a big move – sometimes within hours.

Thanks to these signals, his followers have had the chance to collect huge payouts from his recommendations, like:

Call #1: $6,350
Call #2: $7,650
Call #3: $7,700
Call #4: $9,400
Call #5: $12,750

And in one extraordinary case, a single signal Larry picked up led to a $10 million payday for his hedge fund.

Now, on Wednesday, February 11, at 8 p.m. ET, Larry is going to reveal exactly how he did it.

To be clear: Larry's never shared this strategy publicly like this before.

But next Wednesday evening, he's sharing all eight signals with you.

He'll also walk you through a potential 255% opportunity he's identified from a call this week – and exactly how you could position yourself for a payout.

To make sure you're prepared to profit...

Click here to confirm you're attending Larry's landmark broadcast: Wall Street Money Calls.

Regards,

Lindsey Hough
Managing Director, Brownstone Research

1125 N Charles St, Baltimore, MD 21201
www.brownstoneresearch.com

To ensure our emails continue reaching your inbox, please add our email address to your address book.

No longer wish to receive special offers from us? Manage your preferences here.

Tonight's the night: Deep Sonar's first live reveal

Don here with an important reminder.

Blake's Deep Sonar live session starts tonight at 7PM Eastern. This is the first time he's ever shared this material publicly.

Registration is still open - click here to secure your FREE spot →

Let me tell you why tonight matters.

Blake's not teaching you to watch price action more closely or trade faster than everyone else. He's revealing how to identify market pressure before it translates into visible price movement.

This is the same framework behind captures like:

$3,300+ on TSM
$3,900+ on PLTR
190% on CHWY
73% on XLY

These results all came from seeing what builds beneath the surface before the crowd reacts.

Tonight, Blake's pulling back the curtain. You'll see what he's tracking. How to spot when pressure is building. And why this keeps you ahead instead of chasing.

This is live. This is new. And once we start, registration closes.

If you're registered, I'll see you at 7PM ET.

If not, you've got a few hours left to get your spot.

Register now before tonight's 7PM start time →

See you tonight,

Don Kaufman

Chief Strategist, TheoTRADE

Helping You Become a Better Trader...it's What We Do. Experience TheoTrade® Today!

Whether you are a beginning, intermediate, or active trader, you will find a treasure chest of valuable trading education resources, both free and paid, that will help take your trading to the next level. We are committed to helping you become the best trader you can be.

TheoTrade

PO Box 24790 Christiansted, Virgin Islands 00824
1 (800) 256-8876

support@theotrade.com

Want to change how you receive these emails?

You can Update your preferences

Theotrade.com | Privacy Policy

If you no longer wish to receive our emails Unsubscribe

400 QQQ Puts 30 Seconds Before the Close

400 QQQ Puts 30 Seconds Before the Close

By Brandon Chapman, CMT

Hey trader,

After all my presentations yesterday, I noticed something on the Ghost Prints Surveillance Console that caught my eye.

Someone knew the selloff was coming…

…and they bought almost 400 at-the-money contracts of QQQ 607 strike expiring the very next day.

It is a dramatic overnight hedge capable of protecting losses on a $24 million position.

While the buyer of those contracts is celebrating their success for today, perhaps they shouldn't celebrate too early. More selling is coming.

Let me show you how I know this.

You can avoid the trade setup where most traders get trapped.

The squeeze trap. It happens when a short squeeze gets started, only to evaporate. Miserably.

A gamma squeeze play can be great. The Ghost Prints Surveillance console lit up opportunities on KSS (375% in 13 days), PLUG (206%in 5 days), and on VFC (100% in just 24 hours).

Of course you want to find these excellent opportunities.

Along the way you need to skip over the pit of despair, the trap waiting to suck you in.

Let me show you how to identify the three impostor setups so you don't get trapped.

See How the The Ghost Prints Surveillance Can Give You an Edge

Disclaimer: Neither TheoTrade or any of its officers, directors, employees, other personnel, representatives, agents or independent contractors is, in such capacities, a licensed financial adviser, registered investment adviser, registered broker-dealer or FINRA|SIPC|NFA-member firm. TheoTrade does not provide investment or financial advice or make investment recommendations. TheoTrade is not in the business of transacting trades, nor does TheoTrade agree to direct your brokerage accounts or give trading advice tailored to your particular situation. Nothing contained in our content constitutes a solicitation, recommendation, promotion, or endorsement of any particular security, other investment product, transaction or investment.Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Past Performance is not necessarily indicative of future results.

If you no longer wish to receive our emails Unsubscribe

Crypto News

Thursday, February 5, 2026

AI (probably) won’t kill all the stonks

Today's Agenda

AI Won't Kill All the Stonks

What Is a Peter Mandelson?

Telltale Charts

Further Reading

ICYMI

Kickers

The Sector Reversal Hiding in Plain Sight

Update: Authorization (You're In)

Tonight's the night: Deep Sonar's first live reveal

Helping You Become a Better Trader...it's What We Do. Experience TheoTrade® Today!

Whether you are a beginning, intermediate, or active trader, you will find a treasure chest of valuable trading education resources, both free and paid, that will help take your trading to the next level. We are committed to helping you become the best trader you can be.

400 QQQ Puts 30 Seconds Before the Close

400 QQQ Puts 30 Seconds Before the Close

AI (probably) won’t kill all the stonks

Search This Blog