The Rundown Google Crushes Earnings but Tech Stocks Keep Sliding
Feb 5, 2026
Tech stocks slide for a second day as market rotation picks up pace. Google's huge Q4 results clash with its $180B AI capex plan, spooking investors. SpaceX is racing to secure index inclusion after an IPO. Snap posts a rare profit while trimming users. Qualcomm tumbles on weak guidance tied to memory shortages. Nintendo teases a Virtual Boy–style VR comeback.
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Market Breadth Hides Tech-Led Pullback
- The market drop masks healthy breadth because equal-weight S&P 500 hit an all-time high while the cap-weighted indexes fell.
- This shows a rotation out of mega-cap tech into other sectors, which can be a healthy market sign.
Huge Growth Doesn’t Immunize From CapEx Fear
- Google posted massive revenue and profit growth, led by search and a booming cloud business with improving margins.
- Yet the stock fell because investors focused on Google's plan to double CapEx to $180 billion for AI infrastructure.
Use Index Fast-Track To Support An IPO
- If a company plans to IPO and wants to support its share price, consider seeking fast-track index inclusion to force ETF demand.
- Getting index funds to buy immediately can boost liquidity and reduce post-IPO sell pressure.