Market Signal Briefing

Consumers have been feeling the economic strain as persistently high prices and an uncertain labor market weigh on their spending. This has had an effect on many retailers' sales.

Two retailers have done well, though -- TJX Companies (NYSE: TJX) and Walmart (WMT +3.34%). But which retail stock makes the better long-term investment?

Image source: Getty Images.

TJX Companies TJX Companies operates under brands like TJ Maxx, Marshalls, and HomeGoods, offering goods like apparel, jewelry, furniture, and cookware. It's become known for offering merchandise 20% to 60% below full-price retailers.

How can it sell it so cheaply? TJX buys excess inventory from manufacturers at attractive prices and passes along these savings in the form of lower prices to customers. It's particularly effective during challenging economic times since it has a greater selection of merchandise and more negotiating power.

Since it buys merchandise based on availability and price, its offering could change. Hence, it provides a "treasure hunt" experience to customers.

People remain drawn to TJX's merchandise and value proposition. Its fiscal third-quarter same-store sales (comps) grew 5%, and they were positive across each division. This covered the period that ended on Nov. 1.

Walmart Walmart has been tremendously successful since opening its first discount store in the early 1960s. The company operates under a simple premise: Keep a close eye on costs so it can charge customers everyday low prices. In fact, customers would be hard pressed to find lower prices.

Over the years, management has also been investing in technology to remain competitive. This includes making shopping faster and more convenient.

Walmart has three segments. These are Walmart U.S. and Walmart International, and Sam's Club (membership warehouse club). The Walmart U.S. business produces the majority of the company's revenue, however.

It's not a mature business that's no longer growing sales, either. The U.S. segment's fiscal third-quarter comps rose 4.5%. Higher traffic contributed 1.8 percentage points, and increased spending accounted for the balance.

Better buy Walmart may no longer offer fast growth, but its steady sales and earnings growth clearly have appealed to investors. The shares returned 183% over the last five years through Feb. 2, beating the S&P 500 index's 96.2% return.

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As a result of this success, the shares aren't a bargain. In fact, trading at a price-to-earnings (P/E) ratio of 44, they're expensive compared to the 10-year median multiple of 29. The stock also trades at a much higher multiple than the S&P 500's 30 P/E ratio.

TJX has also rewarded shareholders with a market-beating return. The stock's 145.7% 10-year return was nearly 50 percentage points higher than the S&P 500. While the stock's P/E multiple of 34 is higher than its 10-year median of 24, it's not that much higher than the market's valuation.

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I'd buy both Walmart and TJX, but if I could only choose one, I'd pick the latter based on its much better valuation.

These three stocks shouldn't be this cheap, given their growth and competitive advantages.

Even with a stock market near its all-time highs, there are still fantastic buying opportunities if you know where to look.

Coincidentally, you don't need to look too hard. There are some dominant market leaders in growing industries that happen to be trading at compelling valuations right now. Buying these three growth stocks now could pay off handsomely as they continue to flourish.

The best part is you can buy a share of each stock for less than $1,000 in total. Dive in below.

Image source: Netflix.

1. Netflix Shares of streaming leader Netflix (NFLX +1.65%) have been trading down for months, especially following news that it plans to acquire Warner Bros. Studios, HBO, and the HBO Max streaming service from the Warner Bros. Discovery conglomerate in an epic $82.7 billion blockbuster transaction. If the all-cash deal closes, it would drain Netflix's cash position and pile tens of billions of dollars in debt onto its balance sheet.

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That's a fair concern, but long-term investors could see Netflix build arguably the world's deepest content portfolio. It could fuel Netflix's growth for years as the company leverages it to monetize its global subscriber base of 325 million, which is still growing, by the way. The stock's decline has dragged its valuation down to about 31 times trailing 12-month earnings, its lowest since early 2023.

2. Taiwan Semiconductor Manufacturing It doesn't get as much publicity as Nvidia does, but Taiwan Semiconductor Manufacturing (TSM +5.57%), or TSMC for short, is the company that powers the artificial intelligence (AI) boom. It's the world's largest chip foundry, meaning it manufactures nearly all the chips that Nvidia and others design and sell for AI and just about every technological product or service out there.

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When I say leading, I mean it. TSMC controls about 72% of the global market. TSMC's stock continues to rise, but it's not keeping up with the company's stellar business performance. Shares trade at roughly 24 times forward earnings estimates, a jaw-dropping bargain for a company that analysts estimate will grow by 25% annually over the next three to five years.

3. Uber Technologies Anyone familiar with ride-sharing should know Uber Technologies (UBER 0.58%). It dominates about three-quarters of the U.S. ride-sharing market and also operates globally. The market isn't sure what to make of Uber, which some fear is vulnerable to disruption from autonomous ride services, such as Alphabet's Waymo or Tesla's Robotaxi.

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Fortunately, Uber is developing self-driving technology in a partnership with Nvidia, with plans to deploy 100,000 autonomous vehicles over the coming years.

In the meantime, the stock trades at 22 times earnings estimates, and analysts are calling for nearly 22% annualized long-term growth. Uber's stock could be a tremendous winner moving forward, as long as it can defend its business against autonomous competitors.

Justin Pope has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, Netflix, Nvidia, Taiwan Semiconductor Manufacturing, Tesla, Uber Technologies, and Warner Bros. Discovery. The Motley Fool has a disclosure policy.

Chipotle is looking to boost its business.

Chipotle Mexican Grill's (CMG +2.44%) struggles continued in the fourth quarter, as the fast-casual Tex-Mex restaurant saw its comparable-store sales fall for the third time in four quarters.

However, the stock was able to brush off the results and uninspiring guidance. That could be a sign the stock has bottomed after losing 38% of its value in 2025.

Let's take a closer look at its report and prospects to see if investors should be scooping up shares in the stock.

Image source: Getty Images.

Struggles continue After seeing its same-store sales tick up slightly by 0.3% in Q3, Chipotle once again saw its comparable-restaurant sales slip, dropping 2.5% in Q4. Transactions sank 3.2%, while its average check size rose 0.7%.

Overall, Chipotle's revenue rose by 4.9% to $2.98 billion in the quarter, while adjusted earnings per share (EPS) were flat at $0.25. That was a sliver ahead of analysts' expectations, which were for EPS of $0.24 of sales of $2.96 billion, according to LSEG.

Restaurant-level operating margin fell by 140 basis points to 24.5%. This is one of the more important metrics in the restaurant industry, as it measures how profitable individual restaurants are. Chipotle expects its margins to remain under pressure in 2026 as it will keep price hikes to a minimum. Its long-term goal is to eventually get to average unit volumes of $4 million (it's currently at $3.1 million) and a 30% restaurant-level operating margin.

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The company continued to add new locations, opening 334 company-owned restaurants in 2025 and 345 in total. It anticipates opening between 350 and 370 in 2026, with between 10 and 15 of them in international markets with partners. It ended the year with 4,042 restaurants and believes it can expand to 7,000 around the globe.

Chipotle forecast that same-store sales would be flat in 2026, saying it wanted to be conservative given an uncertain consumer and economic environment. However, it is not just sitting still and has been happy with its recent high-protein menu launch. It also plans to lean into menu innovation and increase its number of limited-time offerings to four in 2026. It will also relaunch its rewards program this spring to help drive customer engagement.

Is the stock a buy? Sometimes setting the bar low can be the best thing for a stock, and that appears to be what Chipotle is trying to do. However, the stock isn't exactly in bargain bin territory, trading at a forward price-to-earnings (P/E) multiple of more than 32 times based on 2026 analyst estimates. Given its recent performance and the resurgence of casual sit-down chains, where people are seeing better value, I'd stay on the sidelines, as there are better investment options in the consumer discretionary space.

Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chipotle Mexican Grill. The Motley Fool recommends London Stock Exchange Group Plc and recommends the following options: short March 2026 $42.50 calls on Chipotle Mexican Grill. The Motley Fool has a disclosure policy.

, /PRNewswire/ -- 

Why: Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of Phoenix Education Partners, Inc. (NYSE: PXED) resulting from allegations that Phoenix Education may have issued materially misleading business information to the investing public.

So What: If you purchased Phoenix Education securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. The Rosen Law Firm is preparing a class action seeking recovery of investor losses.

What to do next: To join the prospective class action, go to https://rosenlegal.com/submit-form/?case_id=50770 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.

What is this about: On January 3, 2026, Fox News published an article entitled "University of Phoenix data breach hits 3.5M people." The story stated that the "University of Phoenix has confirmed a major data breach affecting nearly 3.5 million people. The incident traces back to August when attackers accessed the university's network and quietly stole sensitive information."

Why Rosen Law: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions.  Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved, at that time, the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.

Attorney Advertising. Prior results do not guarantee a similar outcome.

Contact Information:

      Laurence Rosen, Esq.
      Phillip Kim, Esq.
      The Rosen Law Firm, P.A.
      275 Madison Avenue, 40th Floor
      New York, NY 10016
      Tel: (212) 686-1060
      Toll Free: (866) 767-3653
      Fax: (212) 202-3827
      [email protected]
      www.rosenlegal.com

SOURCE THE ROSEN LAW FIRM, P. A.

These stocks pay dividends, have promising growth prospects, and are all-around safer investments.

There are some stocks that could be excellent long-term investments for all types of investors. Whether you want dividends, stability, or long-term growth, the stocks listed below can be ideal options to hang on to for years and even decades.

Microsoft (MSFT +2.00%) and American Express (AXP +1.28%) are both household names that most consumers likely know well. They have strong brands and successful businesses, and they have made for fantastic investments to own over the years.

Here's a look at why they could make for great additions to your portfolio today.

Image source: Getty Images.

1. Microsoft Tech giant Microsoft is one of the most valuable companies in the world, with a market cap of $3.1 trillion. Its stock recently went on a decline, however, after investors weren't thrilled with its latest quarterly results. While the company generated solid 17% revenue growth for the last three months of 2025, analysts were underwhelmed with the growth in its Azure cloud business, where the growth rate was 39% -- slightly below the 39.4% that analysts were expecting.

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For a company that is valued as highly as Microsoft is, expectations are high. But the reality is that's ultimately a minor setback in the grand scheme of things. The company is a growth machine, and that's what matters the most.

Between Azure, Xbox, LinkedIn, Microsoft 365, and its devices, Microsoft has plenty of ways to generate growth in the long term. Plus, it also has strong financials that enable it to invest in its operations and pursue acquisitions. This past quarter, it generated a whopping $38.5 billion in profit -- up from $24.1 billion a year ago.

As a bonus, the tech stock also pays a dividend that yields 0.9%. It has raised its dividend for decades, with its most recent hike being a 10% increase that it announced back in September.

2. American Express Credit card issuer American Express is another terrific investment to buy and hold. It recently posted its year-end results, and it generated $72.2 billion in revenue (net of interest expense) for 2025, which was up 10% year over year, as card member spending remains strong -- even amid challenging economic conditions.

Although investors have been worried about a possible temporary cap on credit card interest rates, that isn't a guarantee to happen. And even if it does, it may not weigh down the business in the long run. Meanwhile, the company still expects solid growth in the year ahead, forecasting that for 2026 its revenue growth rate will be between 9% and 10%.

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Amex could also make for an attractive dividend growth stock. Like Microsoft, it also yields around 0.9%. And this year, Amex plans to hike its payout by 16%. And with a low payout ratio of around 20%, there's plenty of room for more increases in the future.

A view shows the ACC logo at the gigafactory of Automotive Cells Company (ACC), a joint venture of Stellantis, TotalEnergies and Mercedes, in Billy-Berclau-Douvrin, northern France, May 30,... Purchase Licensing Rights, opens new tab Read more

CompaniesROME, Feb 7 (Reuters) - The Stellantis-backed Automotive Cells Company (ACC) told unions it had dropped plans to build gigafactories in both Italy and Germany, the Italian metalworkers' union UILM said in a statement on Saturday.

ACC, a battery joint venture in which Stellantis (STLAM.MI), opens new tab is the largest investor, had plans for three gigafactories in Europe -- in France, Germany and Italy.

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However, UILM said ACC management had informed them that the planned projects for Termoli, in Italy, and Kaiserslautern, in Germany, had been "definitively shelved".

ACC said in a subsequent statement on Saturday that the projects in Germany and Italy had been on standby since May 2024 and added that the "prerequisites" to restart them were unlikely to be met. It said "different scenarios" were being considered.

Stellantis said it was closely monitoring the situation, and that it remained "fully mobilised" to assess industrial and social implications.

Stellantis shares plunged 25.2% on Friday, their biggest single-day drop on record, after the Franco-Italian company booked charges of around 22.2 billion euros ($26.5 billion) as it scaled down electric-vehicle development plans.

ACC, which is owned by Stellantis, Mercedes-Benz (MBGn.DE), opens new tab and TotalEnergies (TTEF.PA), opens new tab, has started production at a plant in France, but put on hold the Italian and German projects amid lacklustre demand for electric vehicles.

UILM said Stellantis had previously outlined plans for the production of gearboxes and engines at Termoli but had not provided operational details.

"The failure to build the ACC gigafactory must in fact be offset by clear and coherent industrial decisions," UILM said.

Stellantis said it remained committed to investing in gearbox and engine production at Termoli.

"As agreed a year ago, these measures are intended to support Made in Italy and to secure the plant's future. Current ACC employees will be offered continued employment within Stellantis," it said.

Reporting by Crispian Balmer and Giulio Piovaccari; Editing by Aidan Lewis

Our Standards: The Thomson Reuters Trust Principles., opens new tab

, /PRNewswire/ -- Rosen Law Firm, a global investor rights law firm, announces a class action lawsuit on behalf of purchasers of American Depositary Shares ("ADS") of Mereo BioPharma Group plc (NASDAQ: MREO) between June 5, 2023, and December 26, 2025. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than April 6, 2026 in the securities class action first filed by the Firm.

So What: If you purchased Mereo BioPharma Group securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.

What to do next: To join the Mereo BioPharma Group class action, go to https://rosenlegal.com/submit-form/?case_id=52452 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than April 6, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.

Why Rosen Law: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved, at that time, the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.

Details of the case: According to the lawsuit, defendants made false and/or misleading statements and/or concealed material adverse facts concerning the true state of the Phase 3 ORBIT and COSMIC programs; neither of which hit its primary endpoints of reducing annualized clinical fracture rate compared to the placebo or bisphosphonate control groups, respectively. When the true details entered the market, the lawsuit claims that investors suffered damages.

To join the Mereo BioPharma Group class action, go to https://rosenlegal.com/submit-form/?case_id=52452 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.

No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.

Attorney Advertising. Prior results do not guarantee a similar outcome.

Contact Information:

      Laurence Rosen, Esq.
      Phillip Kim, Esq.
      The Rosen Law Firm, P.A.
      275 Madison Avenue, 40th Floor
      New York, NY 10016
      Tel: (212) 686-1060
      Toll Free: (866) 767-3653
      Fax: (212) 202-3827
      [email protected]
      www.rosenlegal.com

SOURCE THE ROSEN LAW FIRM, P. A.

Item 1 of 3 A combination image shows an injection pen of Zepbound, Eli Lilly's weight loss drug, and boxes of Wegovy, made by Novo Nordisk. REUTERS/Hollie Adams/Brendan McDermid/Combination/File Photo

[1/3]A combination image shows an injection pen of Zepbound, Eli Lilly's weight loss drug, and boxes of Wegovy, made by Novo Nordisk. REUTERS/Hollie Adams/Brendan McDermid/Combination/File Photo Purchase Licensing Rights, opens new tab

SummaryCompaniesNovo, Lilly, Hims, Ro line up ads for SundayAds capitalize on consumers seeking out new pillsCost for 30-second spot rose to $10 million, Adweek saysNEW YORK, Feb 7 (Reuters) - Companies looking to sell weight-loss drugs directly to consumers, including Novo Nordisk's (NOVOb.CO), opens new tab Wegovy, will shell out millions of dollars for celebrity-filled ads during Sunday's Super Bowl with its promise of one of the year's largest global audiences.

Novo’s 90-second spot has comedian and SNL stalwart Kenan Thompson announcing the new Wegovy pill to America and suggesting, tongue-in-cheek along with music producer DJ Khaled, that people with obesity can benefit from the drug just like they would a pill for parallel parking or saving kittens in trees.

Read about innovative ideas and the people working on solutions to global crises with the Reuters Beacon newsletter. Sign up here.

Telehealth company Ro will bring out tennis star Serena Williams in its first Super Bowl ad, while a Hims & Hers Health (HIMS.N), opens new tab commercial features a voiceover by rapper Common with the tag line "Rich People Live Longer."

The U.S. healthcare system offers wealthy Americans luxury therapies that allow them to “live longer,” Common says over scenes of wealthy people receiving a variety of exotic, likely highly expensive treatments before describing how Hims' offerings can democratize healthcare for all consumers.

The advertising blitz reflects the broader shift toward direct-to-consumer marketing with the launch of new pill versions of the GLP-1 weight-loss drugs, industry experts and analysts say.

LILLY TARGETS PRE-GAME SHOWDanish drugmaker Novo Nordisk and Indianapolis-based Eli Lilly (LLY.N), opens new tab have been fighting for market share as millions of Americans turned to the highly effective injectable GLP-1 drugs. Novo just launched its Wegovy pill and Lilly's oral weight-loss offering is expected to be approved in April.

Lilly plans to advertise Zepbound during NBC's pre-game show as well as during the game on its Peacock streaming service, a spokeswoman said.

“The Super Bowl is one of the best channels to connect with millions of consumers,” said Kevin Gade, chief operating officer at Bahl & Gaynor, which owns Lilly shares. He noted that the Super Bowl is the rare event where consumers actively seek out the TV ads, which place a premium on creativity and often humor that can generate outsized buzz.

Ads during this year's 60th Super Bowl, in which the Seattle Seahawks will take on the New England Patriots, cost up to $10 million for a 30-second spot, according to Adweek.

Around 130 million people are expected to watch the game on Sunday, according to Nielsen projections. NBC has said advertising slots for its Peacock streaming service cost roughly half as much as those shown on its traditional broadcast network.

DROPPING PRICES AT NOVO AND HIMSHigh-visibility advertising will become a mainstay as more companies pursue a direct-to-consumer sales model and increased pricing pressure makes the weight-loss pill more affordable, drawing in new customers, said Michael Shnoe, a consumer health expert at consultancy West Monroe.

The new Wegovy pill, which has the same active ingredient - semaglutide - as injectable Wegovy and Ozempic, has seen strong early U.S. demand. The treatment is available on its cash-pay direct-to-consumer website at a starter price of $149.

On Thursday, Hims said it would launch a compounded GLP-1 pill based on semaglutide at a starting price of $49, drawing threats of legal challenges from Novo and the FDA.

Sean Wright, an executive with media intelligence firm Guideline AI, said overall pharmaceutical advertising spending last year was propped up by the weight-loss category, and could have declined as much as 5% without GLP-1 ads.

Hims is one of those companies that spent big in 2025, including on last year's Super Bowl.

"The company is going for reach," said Leerink analyst Michael Cherny. "It seemed to work last year so I get the logic behind running another one."

Reporting by Amina Niasse; Editing by Caroline Humer and Bill Berkrot

Our Standards: The Thomson Reuters Trust Principles., opens new tab

AMD expects 60% annual data center growth, but GPUs aren't the whole story.

Shares of Advanced Micro Devices (AMD +8.28%) took a beating on Wednesday as investors digested the chip company's fourth-quarter report. AMD's results and guidance were generally solid, with revenue soaring 34% year over year in the fourth quarter and the company's outlook calling for 32% growth in the first quarter of 2026.

One thing that stood out about AMD's outlook was its expectations for the data center segment. This segment houses AMD's EPYC server CPUs and its Instinct data center GPUs, and it grew revenue by 39% in the fourth quarter. AMD CEO Lisa Su expects growth to accelerate dramatically going forward. "...we are well-positioned to grow data center segment revenue by more than 60% annually, over the next three to five years and scale our AI business to tens of billions in annual revenue in 2027," Su said during the earnings call.

AMD's AI accelerators will be a big part of the story as the company scales up its MI400 series chips and its Helios rack-scale solutions, but CPUs will play a surprisingly large role as well. As the AI industry has evolved from question-answer style chatbots to complex AI agents, the CPU is making a comeback and will help drive AMD's growth.

Image source: AMD.

AI agents are changing the story In a standard AI chatbot, the user asks a question, and the chatbot returns an answer drawn solely from its training data. This process happens entirely on the GPU. Agentic AI is fundamentally different.

AI agents run in a loop. The user makes a request, and the agent must decide what to do first. Typically, an agent has a list of tools at its disposal. These tools could handle web searches, file access, data analysis, or running code written by the user or an AI agent. The big thing here is that this tool calling involves the CPU, not the GPU.

Here's an example: Imagine an AI agent that produces an infographic of the 7-day weather forecast each day. First, it would make a tool call to some external API to fetch weather data. Then it would make another tool call to run a piece of code that converts the weather data to the right format. Then, yet another tool call might either run code that generates the graphic or tap an external AI image service. Finally, the result is returned to the user.

There's plenty of GPU usage going on here. Between each tool call, it's the AI agent that decides what to do next. But the action of using those tools happens on the CPU. The CPU is running code, searching the web, manipulating data, and making API calls. "Where, you know, when you have, these AI processes or AI agents that are spinning off a lot of work, in an enterprise, they're actually going to a lot of traditional CPU tasks," noted Su during the earnings call.

Su expects the server CPU market to expand by "strong double digits" in 2026. AMD has been increasing its supply capacity to meet this demand, but CPUs could still be a bottleneck for AI infrastructure providers. Intel is also seeing booming demand for its server CPUs, and despite shifting manufacturing capacity away from PC chips, the market leader expects supply to fall short of demand.

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Multiple ways to win AMD has been gaining server CPU market share from Intel for years, and now an expanding market adds another tailwind for its server CPU business. Intel's products have become more competitive, so market share gains may be tougher going forward, but a rising tide in the server CPU market will lift all boats.

In the data center GPU market, AMD must contend with an entrenched Nvidia. In the CPU market, AMD is in a stronger competitive position. Even if AMD's AI accelerator ramp goes more slowly than expected, the company's EPYC server CPUs can still drive strong growth in the data center segment and help it hit its bullish target.

Key Takeaways Coca-Cola is slated to report quarterly earnings on Tuesday morning, following a record run for the soda maker's stock in recent weeks.Options pricing suggests traders expect the stock could reach new highs following the report. The Coca-Cola Company is set to post its fourth-quarter earnings ahead of the market open Tuesday, with traders anticipating the beverage giant's stock could extend its record-setting rally following the results.

Current options pricing suggests traders see Coca-Cola (KO) stock moving up to 3% in either direction by the end of the week following the report. A move of that size from Friday's record-high close at $79 could lift the stock above $81, or bring it back down to about $76.

The shares have gained 13% since the start of the year, amid a broader rotation into consumer staples stocks. Rival PepsiCo (PEP), which on Tuesday reported better-than-expected earnings, has also seen its stock surge in recent weeks.

Why This Matters to Investors Widely regarded as a bellwether for the consumer staples sector, analysts and investors will likely be watching what Coca-Cola's results could say about the state of U.S. consumers, and how America's food and beverage giants are navigating shifting tastes.

Since last reporting results in October, Coca-Cola has announced plans to transition to a new CEO, with company veteran COO Henrique Braun set to succeed James Quincey's nine-year tenure starting on March 31. The company's revenue is expected to come in at roughly $12 billion for the fourth quarter, up 4% year-over-year, while adjusted earnings per share are projected to rise by 2 cents to $0.57, according to estimates compiled by Visible Alpha.

Ahead of the report, UBS analysts said they expect a solid quarter from Coca-Cola and that the biggest hurdle to the stock rising could be a high valuation compared to its peers. The analysts said it's possible investors may look to other consumer staples stocks for higher growth potential.

Of the seven analysts with current ratings tracked by Visible Alpha, six have recommended buying Coca-Cola's stock, compared to one neutral rating. Their average price target is just above $81, suggesting slim upside to Friday's record close.

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, /PRNewswire/ --

Why: Rosen Law Firm, a global investor rights law firm, continues to investigate potential securities claims on behalf of shareholders of Tandem Diabetes Care, Inc. (NASDAQ: TNDM) resulting from allegations that Tandem Diabetes Care may have issued materially misleading business information to the investing public.

So What: If you purchased Tandem Diabetes securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. The Rosen Law Firm is preparing a class action seeking recovery of investor losses.

What to do next: To join the prospective class action, go to https://rosenlegal.com/submit-form/?case_id=19024 https://rosenlegal.com/submit-form/?case_id=41168or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.

What is this about: On August 7, 2025, before the market opened, the company issued a press release entitled "Tandem Diabetes Care Issues Voluntary Medical Device Correction for Select t:slim X2 Insulin Pumps." The release stated that Tandem Diabetes had "announced a voluntary medical device correction for select t:slim X2 insulin pumps to address a potential speaker-related issue that can trigger an error resulting in a discontinuation of insulin delivery."

On this news, Tandem Diabetes' stock fell 19.9% on August 7, 2025.

Why Rosen Law: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions.  Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved, at that time, the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered hundreds of millions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.

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NEW YORK, Feb. 07, 2026 (GLOBE NEWSWIRE) -- Leading securities law firm Bleichmar Fonti & Auld LLP announces that it has filed a class action lawsuit against BellRing Brands, Inc. (NYSE:BRBR) and certain of the Company’s senior executives for securities fraud after a significant stock drop resulting from potential violations of the federal securities laws.

If you invested in BellRing, you are encouraged to obtain additional information by visiting: https://www.bfalaw.com/cases-investigations/bellring-brands-inc-class-action-lawsuit.

Investors have until March 23, 2026, to ask the Court to be appointed to lead the case. The complaint asserts claims under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of investors in BellRing securities. The class action is pending in the U.S. District Court for the Southern District of New York. It is captioned Denha v. BellRing Brands, Inc., No. 1:26-cv-00575.

Why is BellRing Being Sued for Securities Fraud?

BellRing develops, markets, and sells “convenient nutrition” products such as ready-to-drink (“RTD”) protein shakes primarily under the brand name Premier Protein. During the relevant period, Defendants represented that sales growth reflected increased end-consumer demand, attributing results to “organic growth,” “distribution gains,” “incremental promotional activity,” and “[s]trong macro tailwinds around protein” among other factors. At the same time, Defendants downplayed the impact of competition on demand, insisting BellRing was not experiencing any significant changes in competition, and that in the RTD category particularly, BellRing possessed a “competitive moat,” given that “the ready-to-drink category is just highly complex” and the products are “hard to formulate.”

As alleged, in truth, BellRing’s reported sales during the Class Period were driven by its key customers stockpiling inventory and did not reflect increased end-consumer demand or brand momentum. Following the destocking, BellRing admitted that competitive pressures were materially weakening demand.

Why did BellRing’s Stock Drop?

On May 6, 2025, BellRing’s CFO revealed “several key retailers lowered their weeks of supply on hand, which is expected to be a mid-single-digit headwind to our third quarter growth,” adding “[w]e now expect Q3 sales growth of low single digits.” BellRing’s CEO further revealed that retailers had been “hoarding inventory to make sure they didn’t run out of stock on shelf” and “protecting themselves coming out of capacity constraints,” but since there had been “several quarters of high in-stock rates,” customers “felt comfortable about bringing [inventory] down. We thought this could happen.”

This news caused the price of BellRing stock to drop $14.88 per share, or 19%, from a closing price of $78.43 per share on May 5, 2025, to $63.55 per share on May 6, 2025.

On August 4, 2025, after market hours, BellRing reported its 3Q 2025 financial results and “narrowed its fiscal year 2025 outlook for net sales.” Then, during the Company’s August 5, 2025 earnings call, BellRing’s CEO attributed the narrowed guidance to “several other competitors” gaining space to sell their products with a large retailer and that “it is not surprising to see new protein RTDs enter[ed]” the convenient nutrition market.

This news caused the price of BellRing stock to drop $17.46 per share, or nearly 33%, from a closing price of $53.64 per share on August 4, 2025, to $36.18 per share on August 5, 2025.

Click here for more information: https://www.bfalaw.com/cases-investigations/bellring-brands-inc-class-action-lawsuit.

What Can You Do?

If you invested in BellRing, you may have legal options and are encouraged to submit your information to the firm.

All representation is on a contingency fee basis; there is no cost to you. Shareholders are not responsible for any court costs or expenses of litigation. The firm will seek court approval for any potential fees and expenses.

Submit your information by visiting:

https://www.bfalaw.com/cases-investigations/bellring-brands-inc-class-action-lawsuit

Or contact:
Adam McCall
[email protected]
212.789.3619

Why Bleichmar Fonti & Auld LLP?

BFA is a leading international law firm representing plaintiffs in securities class actions and shareholder litigation. It has been named a top plaintiff law firm by Chambers USA, The Legal 500, and ISS SCAS, and its attorneys have been named “Elite Trial Lawyers” by the National Law Journal, among the top “500 Leading Plaintiff Financial Lawyers” by Lawdragon, “Titans of the Plaintiffs’ Bar” by Law360 and “SuperLawyers” by Thomson Reuters. Among its recent notable successes, BFA recovered over $900 million in value from Tesla, Inc.’s Board of Directors, as well as $420 million from Teva Pharmaceutical Ind. Ltd.

For more information about BFA and its attorneys, please visit https://www.bfalaw.com.

https://www.bfalaw.com/cases-investigations/bellring-brands-inc-class-action-lawsuit

Attorney advertising. Past results do not guarantee future outcomes.

"It will get worse, it will get redder," Charles Hoskinson warned.

Cardano’s ADA plunged by double digits in the past seven days, in line with the bloodbath that covered the entire crypto market.

The question now is whether the price is headed for a further slump or a much-needed recovery.

What’s Next? On Friday morning, ADA nosedived to around $0.22 (per CoinGecko’s data), the lowest level since June 2023. The renowned analyst Ali Martinez outlined three important support levels where the asset could find buyers if the sell-off continues. The first line is $0.249, the second is $0.115, and the third is the extreme case at $0.053.

As shown in the chart below, there was a brief breakdown below the $0.249 support level, but bulls regained some lost ground, and ADA currently trades at approximately $0.26.

ADA Price, Source: CoinGecko Some industry participants expect further recovery and even a major rally in the future. X user CryptoPatel claimed that ADA is at the exact level that triggered a huge pump years ago, wondering if history is about to repeat. They set a short-term target at $0.40, followed by a “full cycle extension” to above $3. However, the analyst warned that a weekly close below $0.10 would invalidate the setup.

X user Sssebi chipped in, too, noting that ADA has never been this oversold on the weekly timeframe in its entire history. According to CryptoWaves, the Relative Strength Index (RSI) has fallen to around 28 on that scale, matching the lowest mark witnessed in 2019.

You may also like: Crypto Trading Activity Hits Yearly Lows as Holiday Lull Freezes Markets Bitcoin (BTC) Stops at $90K After the FOMC Meeting, Cardano (ADA) Plunges by 10%: Market Watch Whales Are Leaning Into Ethereum (ETH) and Cardano (ADA): Retail Is Lagging Behind ADA RSI, Source: CryptoWaves The technical analysis tool measures the speed and magnitude of recent price changes and can indeed help traders determine whether the asset is oversold or overbought. Ratios below 30 signal that the valuation has plunged too rapidly over a short period, suggesting it could be on the verge of a resurgence, while anything above 70 is considered a bearish zone.

ADA’s exchange netflow also hints that stabilization may be on the horizon. Data from CoinGlass shows that outflows have dominated inflows over the past several weeks and months, indicating that investors continue to move their holdings from centralized platforms to self-custody. This usually results in reduced selling pressure.

ADA Exchange Netflow, Source: CoinGlass Hoskinson’s Crucial Losses Cardano’s founder, Charles Hoskinson, reported losing over $3 billion due to the market decline. He predicted that the prices may continue plunging, but at the same time gave investors some inspirational guidance that may help them pass through the turbulent times:

“Don’t let the markets get you down. It will get worse, it will get redder, it is what it is. But at the end of the day, are you having fun? Find a way to. And know that each and every one of you in the cryptocurrency space, you are doing something that matters, you are doing something that has the potential to change the world.”

Tags:

Journalist

Posted: February 7, 2026

The recent crash has pushed risk assets back toward critical levels.

However, while some assets have only pulled back to pre-election ranges, several major high-caps have slipped to multi-year lows, making any meaningful recovery “relatively” more challenging in the near term. 

Cardano [ADA] is one such high-cap. Down roughly 20% so far in 2026, ADA has slipped back to Q3 2023 price levels, drifting further away from the elusive $1 mark it surrendered during the post-election cooldown.

Source: TradingView (ADA/USDT)

In practical terms, the probability of a FOMO-driven expansion is fading.

Notably, this technical weakness is now feeding into the fundamental narrative. In a recent interview, Cardano founder Charles Hoskinson revealed paper losses exceeding $3 billion across his crypto holdings.

More importantly, the pace of drawdown is accelerating. The figure marks an increase of $500 million in unrealized losses since early January, when Hoskinson reported a $2.5 billion deficit, reinforcing the fragile backdrop.

And yet, Hoskinson continues to advocate a long-term HODL stance, raising a key question: Is his “conviction” in ADA strong enough to sustain FOMO, or will the nearly $3 billion in losses instead deepen fear?

ADA faces a key test between conviction and fear The timing of Hoskinson’s interview carries notable risk.

From a sentiment standpoint, the disclosure could either strengthen confidence or trigger the opposite reaction, undermining holder trust as the market absorbs the scale of roughly $3 billion in unrealized losses.

That’s where ADA’s technical positioning becomes especially important. As outlined earlier, the altcoin has broken down to multi-year lows, dragging its dominance back toward the COVID-era at under 0.5% of the crypto market.

Source: TradingView (ADA.D)

From a technical standpoint, this drop in dominance further highlights ADA’s structural weakness compared to its major rivals, pointing to fading capital rotation and limited participation in the current market cycle. 

Within this fragile setup, Hoskinson’s disclosure of his paper losses could further pressure market confidence, dampening FOMO and increasing the risk of a move toward fresh multi-year lows below the $0.20 region.

If this trend holds, Cardano’s “ghost chain” narrative may regain traction. In that light, the $3 billion in unrealized losses appear less like a bottoming signal and more like the early stage of a broader downside cycle.

Final Thoughts Down 20% in 2026, multi-year lows breached, dominance near 0.5%, highlighting ADA’s structural weakness and fading market participation. Hoskinson’s $3 billion paper losses may dampen FOMO and strengthen the “ghost chain” narrative, increasing the chance of further downside below $0.20.

Ritika Gupta is a Financial Journalist and Geopolitical Analyst at AMBCrypto, specializing in the critical intersection of world politics, economic policy, and the cryptocurrency markets. Her analysis is informed by her distinguished background, which includes professional experience at major news network. She holds a Bachelor's degree in Political Science and Psychology from Gargi College, University of Delhi. This academic training provides her with a sophisticated framework for dissecting complex issues such as international regulations, government fiscal policies, and the geopolitical forces that directly influence asset valuations. At AMBCrypto, Ritika applies this expert lens to synthesize macroeconomic data and political developments, offering readers a deeper context for market movements. She excels at explaining not just what is happening in the market, but why it is happening. Her work is dedicated to providing strategic insights that empower readers to understand the complex relationship between global events and their digital assets.

Tron Inc. added 184,226 TRX tokens to its holdings. TRX price surged by 1.59% over the last 24 hours. The crypto market recorded a recovery in a single day. Tron Inc. continues to accumulate TRX tokens with the recent addition of more than 184k to its holdings. The move comes at a time when TRX price is following the rally of the entire crypto market. Its near-term price projection stretching to the next 3 months is bullish as of now.

Accumulation by Tron Inc. Listed on Nasdaq as TRON, Tron Inc. announced the addition of 184,226 TRX tokens to its total holdings. The recent acquisition comes at an average cost of $0.27, and takes the total holdings to over 680.3 million. Its objective is to enhance the long-term value of shareholders.

This is not the first time that Tron Inc. has accumulated TRX in its holdings. It added 180,093 tokens yesterday and 175,507 tokens the day before that. Community memes have responded to the update by calling it a smart move to grow reserves, adding that it could pay off in the long-term.

Justin Sun, Founder of Tron DAO, has praised the move. He earlier expressed confidence in the future of Tron DAO, stating that it could become a paradise for AI Agent-to-Agent and Machine-to-Machine interactions.

TRX Price Over Time TRX price is currently $0.2753, slightly above the price at which Tron Inc. accumulated its recent holdings. It is up by 1.59% over the last 24 hours and 18.87% in a year. However, the current TRX price reflects a plunge of 5.67% and 7.57% in the last 7 days and 30 days, respectively.

Projections for the next 3 months are bullish, estimating a surge of 25.15% amid the medium volatility of 3.50%. TRX price could hover around $0.3427; however, it is recommended to do thorough research and risk assessment before crypto investments.

Overall sentiments are bearish as TRX tests support levels of $0.2701 and $0.2641 along with resistance levels of $0.2761 and $0.2821.

Rally Across the Crypto Market The crypto market is weighed optimistically at the moment. The market cap has surged by 7.49% to $2.41 trillion. BTC, the flagship crypto, has jumped by 6.58% over the last 24 hours to $70,180.66.

The upward trajectory possibly follows a Friday’s comment by San Francisco Federal Reserve Bank President Mary Daly. Mary called the labor market’s stand precarious, adding that the US Federal Reserve could have cut rates last week. Daly underlined that more rate cuts may be required, aligning with Trump’s earlier call for rate cuts.

Highlighted Crypto News Today:

Crypto.com CEO Kris Marszalek Unveils ai.com with Autonomous Consumer AI Agents

Curious by nature, Ankur's core topic is Web3, but he's a versatile writer who can cover many more subjects. If you catch up with him in his free time, you'll find discussions often center around different movies and TV series. He's an easy person to talk to—you can literally chat with him about anything.

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Marathon Digital sold Bitcoin. The major mining company offloaded $87 million worth of cryptocurrency as prices stayed stuck around $35,000, according to SEC filings released this week. Markets didn’t react much.

The sale comes at a pretty rough time for Bitcoin miners across the board. Energy costs keep climbing while regulatory pressure mounts from multiple directions, forcing companies to make tough choices about their crypto reserves. Marathon’s move fits a pattern we’re seeing throughout the industry – miners liquidating assets to keep the lights on and operations running smoothly. Fred Thiel, Marathon’s CEO, didn’t mince words about why they made the call. “We are focused on optimizing our balance sheet,” he said in a company statement. “This transaction allows us to navigate the current market dynamics effectively.” The timing wasn’t accidental either.

Bitcoin’s wild price swings hurt.

Marathon isn’t flying solo here – other big mining operations face similar headaches. Riot Platforms dumped some of their Bitcoin stash back in January, citing liquidity concerns that sound awfully familiar. These sales give companies breathing room in the short term, but they also signal just how tight things have gotten for miners who bet big on crypto’s long-term prospects. The sector’s struggling to find its footing as operational costs surge and revenue streams fluctuate with Bitcoin’s notorious volatility.

But Marathon keeps expanding anyway. The company recently upgraded facilities to boost efficiency and cut energy consumption, part of a longer-term strategy to weather market storms. These improvements cost money upfront but could pay off if Bitcoin stabilizes at higher levels. That’s a big if, though, given how unpredictable crypto markets remain.

Industry watchers see trouble brewing. They’re tracking these asset sales closely, noting that while liquidation strengthens immediate cash positions, it might spook investors who view such moves as distress signals. The optics aren’t great when mining companies start selling the very asset they’re supposed to be accumulating.

Marathon’s balancing act gets trickier by the day.

The company needs short-term liquidity while positioning for future growth, a challenge that requires careful planning in markets that change direction without warning. Thiel emphasized this point during a February 5 interview, saying “Our priority is to ensure operational sustainability.” He also mentioned Marathon’s watching market trends closely to make smart decisions about potential future sales. The company won’t rule out more Bitcoin liquidations if conditions warrant them.

Recent operational data shows Marathon’s production actually increased despite the challenging environment. The company mined 1,500 Bitcoins in December alone, up significantly from previous months. That production boost came after Marathon integrated energy-efficient technologies in January, designed to cushion the blow from rising energy costs that have hammered mining profitability across the sector.

As of late January, Marathon held roughly 12,000 BTC worth around $420 million at current prices. The $87 million sale represents a substantial chunk of those reserves, showing how serious management is about maintaining financial flexibility. Marathon hasn’t said whether more sales are coming or how much Bitcoin they’re keeping in reserve. Investors will probably get more details when quarterly earnings drop later this month.

The broader crypto mining sector faces mounting pressure from multiple angles. Energy providers are raising rates while regulators scrutinize the industry’s environmental impact and financial practices. Marathon announced plans on February 3 to explore partnerships with renewable energy companies, hoping to cut costs and improve sustainability metrics. Those moves could help differentiate the company as competition intensifies.

Bitcoin’s price volatility remains the wild card. The cryptocurrency bounced between $34,000 and $36,000 recently, creating uncertainty for miners whose revenue depends directly on Bitcoin’s market value. Companies like Marathon are taking defensive measures to protect their financial health, but there’s only so much they can control when crypto markets move unpredictably.

Marathon emphasized transparency in a February 4 press release, promising to keep investors informed about strategic decisions and market developments. The company wants to maintain confidence even as Bitcoin prices swing wildly and operational challenges persist. Whether that approach works depends largely on how Bitcoin performs in coming months and whether mining economics improve enough to justify current expansion plans.

Marathon’s Bitcoin sale totaled exactly $87 million according to SEC documents filed February 6.

The Bitcoin mining industry’s consolidation accelerates as smaller players exit the market entirely. Companies like Core Scientific filed for bankruptcy last year, while others merged or shut down operations when energy costs became unsustainable. Marathon’s survival strategy puts it among the handful of major miners still standing, but the sector lost nearly 40% of its participants since Bitcoin’s peak in late 2021.

Marathon’s timing coincides with broader institutional moves in crypto markets. MicroStrategy, the corporate world’s biggest Bitcoin holder, paused its aggressive buying spree last quarter. Meanwhile, Tesla sold 75% of its Bitcoin holdings in 2022, citing similar liquidity concerns. These corporate retreats from crypto accumulation strategies reflect growing caution among companies that previously championed digital assets as treasury reserves.

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The latest price decline follows the October 10 crash that erased $19B in leveraged positions.

Liquid Capital–affiliated investment firm Trend Research has nearly exited its Ethereum position after incurring losses of $747 million, according to data tracked by Lookonchain.

Trend Research started aggressively accumulating ETH in late 2025 through leveraged borrowing on Aave. Analysts noted that the entity’s ETH holdings exceeded 650,000 units on January 20.

The market is falling, but whales and institutions are buying $ETH.

Trend Research borrowed 70M $USDT from Aave and bought 24,555 $ETH($75.5M), currently holding 651,310 $ETH($1.92B).

OTC whale (0xFB7) bought 20,000 $ETH($58.8M) via #FalconX and #Wintermute.… pic.twitter.com/hGuO3OSs5P

— Lookonchain (@lookonchain) January 21, 2026

However, the recent market corrections crushed the whale’s position.

ETH plunged below $1,900 on Thursday, extending its year-to-date losses to 37%. Despite a bounce above $2,000, ETH is still down 55% over the past four months.

In response to market swings and growing liquidation risks, Trend Research has scaled back its ETH exposure.

According to a Friday report, the firm returned 772,865 ETH to Binance at $2,326 after withdrawing 792,532 ETH from the exchange at an average price of $3,267 following a series of purchases. It retains over 21,000 ETH worth approximately $44 million.

Trend Research has almost sold all of its $ETH!

They have withdrew 792,532 $ETH($2.59B) from #Binance at $3,267, and deposited 772,865 $ETH($1.8B) back to #Binance at $2,326.

Only 21,301 $ETH($43.92M) is left.

Total loss: $747M.https://t.co/Odh9SnonLL pic.twitter.com/KnEKjr0l1N

— Lookonchain (@lookonchain) February 7, 2026

This week’s sell-off comes after the major market crash on October 10 last year, when roughly $19 billion in leveraged positions were liquidated, driving ETH down from highs around $4,700. Since that event, ETH and other crypto assets have struggled to reclaim pre-cash levels.

XRP has staged a sharp rebound over the past 24 hours, with more than $11 billion flowing back into the token as investors moved in following a steep, market-wide sell-off.

By press time, XRP’s market capitalization stood at $89.14 billion, up from $77.86 billion a day earlier, marking an increase of $11.28 billion in a single session.

XRP market cap chart. Source: CoinMarketCap The recovery followed a violent downturn that pushed XRP to multi-month lows near the $1.15 level, briefly intensifying fears of a deeper breakdown. 

Instead, buyers stepped in aggressively, pushing prices higher. As of press time, XRP was trading around $1.46, reflecting a gain of roughly 13% over the same 24-hour period as broader cryptocurrency markets began to stabilize.

Why XRP price is rebounding  On-chain data from Santiment showed clear signs of accumulation during the dip. Whale activity surged, with 1,389 transactions worth more than $100,000 recorded on the XRP Ledger, the highest level seen in four months. 

At the same time, network participation spiked sharply, as the number of unique active addresses jumped to 78,727 within a single eight-hour window, marking a six-month high.

📈 Crypto markets are rebounding, but $XRP‘s price has been on a particularly huge tear. Since bottoming out below $1.15 just under 18 hours ago, the #4 market cap has now recovered to back above $1.50.

😱 Panic sellers should have stopped to notice the massive activity on the… pic.twitter.com/3y0eyGxpo2

— Santiment (@santimentfeed) February 6, 2026 The Santiment data suggests that large holders and active traders moved decisively to accumulate XRP as prices collapsed, a pattern that often precedes short-term price reversals.

It is worth noting that the rebound appears to have been driven less by a single XRP-specific catalyst and more by a combination of relief buying and improving sentiment across the digital asset market. 

As Bitcoin (BTC) and other major cryptocurrencies recovered from recent losses, XRP amplified the move, a pattern often seen during volatility-driven snapbacks.

XRP price remains fragile While the rapid inflow and strong price reaction suggest confidence is returning after capitulation selling, market conditions remain fragile.

In this case, XRP’s price action remains technically weak despite the rebound. The token is trading well below its key moving averages, with the 50-day simple moving average (SMA) near $1.92 and the 200-day SMA around $2.42, confirming that XRP remains in a broader bearish trend and has yet to reclaim important resistance levels that would signal a sustained reversal.

Momentum indicators paint a more neutral picture in the very short term. The 14-day relative strength index (RSI) is around 37.9, placing XRP below the midpoint but not yet in deeply oversold territory. This suggests selling pressure has eased compared with the recent crash, though buying momentum remains cautious rather than decisive.

Featured image via Shutterstock

Thinking ahead is the easiest way to set yourself up for success later.

On any given day, you probably shouldn't bet on a stock market crash happening, and generally, it isn't worth losing sleep over whether a crash is about to happen. Nonetheless, it's worth planning ahead so that you'll know precisely what to do when one actually does happen someday.

So, on that note, between Bitcoin (BTC +2.77%) or XRP (XRP +1.50%), which one is more likely to still have a reason to exist after the dust from a crash settles?

Image source: Getty Images.

Bitcoin's edge in a crash is structural As you probably remember, the Oct. 10, 2025 crypto sector crash erased more than $1 trillion of market value across cryptoassets. That means we have a very recent example in hand to guide how we think about how these assets perform and why.

Take a look at this chart:

Bitcoin Price data by YCharts

As you can see, Bitcoin tends to come out the other side of turbulent episodes looking a bit better because it is the simplest big asset with the widest base of long-term holders in the crypto sector, as well as one of the biggest in the world. The proof is in the pudding; in the past, it has recovered from absurd drawdowns, including declines deeper than 70%, and importantly, it still eventually set new highs afterward.

That pattern isn't a promise of the price going up when you want it to, of course. Still, Bitcoin's core mechanism is its ever-increasing scarcity, which remains in effect even after the market craters. The halving schedule that reduces new supply roughly every four years is part of that design.

Today's Change

(

2.77

%) $

1827.31

Current Price

$

67731.00

So if a crash occurs, it tends to pay off to start buying Bitcoin in small tranches over the course of weeks or months. If you're comfortable with feeling uncomfortable (due to your investment being underwater) for a while, such behavior has so far always paid off in the long run.

XRP can rebound, but expect slower progress XRP has recovered from brutal declines before, just like Bitcoin, but it's also far more entangled with institutional financial adoption narratives and Ripple's execution with the chain's technical development.

Ripple markets the coin and its chain as financial infrastructure for faster cross-border payments and tokenized real-world asset (RWA) management, so there are a lot more economic, market, and financial risks that bleed into the coin's price and keep it down. And while the XRP Ledger (XRPL) is maintained by a broader community, there's still no escaping the reality that a lot of demand for the coin still depends on institutions choosing to build their operations on a tech stack that Ripple champions.

Today's Change

(

1.50

%) $

0.02

Current Price

$

1.40

Therefore in the context of a market crash -- especially one triggered by real economic phenomena that alter how willing financial businesses will be to invest in onboarding new technologies -- XRP is practically destined to see a worse near-term outcome than Bitcoin, as well as a recovery that's more likely to be hampered by real economic constraints.

So, if there's a future crash, buy Bitcoin if you want the asset whose investment thesis requires the fewest external parties to behave well.

Journalist

Posted: February 7, 2026

Worldcoin [WLD] staged a strong comeback, rebounding from a $0.30 decline as the market signaled a broader recovery. 

WLD climbed 20% to a local high of $0.42 after defending the $0.40 level, before slightly retracing. At press time, it traded at $0.40, still up 14.42% on the daily chart.

Meanwhile, the altcoin market cap reclaimed $1 billion, signaling fresh capital inflows. With this rally, WLD effectively erased the losses from the past three days of weakness.

Worldcoin shows bullish momentum  WLD exhibited bullish momentum as tensions and fears in the futures market cooled and traders’ risk appetite recovered.

A break from the recent trend, investors turned bullish and started taking long positions. According to CoinGlass data, Open Interest (OI) rose 16.3% to $130 million, at press time, indicating increased capital flows into futures positions. 

Source: CoinGlass

In fact, Worldcoin recorded $135.55 million in Futures Inflows compared to $133.25 million in Outflows, resulting in $2.29 million in net flow. 

Interestingly, most of this capital flowed into long positions, as evidenced by the Long-Short Ratio. This metric increased from 0.7 to 1.2, with investors on OKX and Binance accounting for the majority. 

Source: CoinGlass

A ratio exceeding 1 indicates that most participants were bullish and had placed aggressive bets on further gains. 

Pressure on prices eases In addition to a future recovery in risk appetite, the spot market recorded a significant increase in demand. 

The BSVP ratio indicates that sellers are exhausted in the market. As such, sell pressure turned negative, while buy pressure rose to 19 as of writing, a significant jump from the previous day. 

Source: TradingView

The shift in dynamics indicated increased buyer activity as they sought to absorb market pressure. 

Although buyers have attempted to exert pressure, net market pressure remains bearish, suggesting they have not yet fully dominated the market. As such, the market needs a sustained period of higher buying pressure for a momentum shift. 

Furthermore, exchange activities also echoed this recovering demand. As such, more than $28.29 million in WLD flowed out of exchanges over the past 24 hours. 

Source: CoinGlass

At the same time, only $27 million flowed into the market, indicating a significant jump in market demand. 

With demand for Worldcoin recovering across the market, these could create new upside pressure on the price. Often, increased upside pressure precedes higher prices for the given asset. 

Can WLD’s upside momentum sustain? Worldcoin rebounded from the recent slip as demand recovered across all market participants amid broader market reactivation.

As a result, the altcoin’s Relative Strength Index made a bullish crossover, hiking from 32 to 42 at press time. Equally, WLD crossed its short-term moving average (9MA) before a slight pullback.

Source: TradingView

These two bullish moves indicated stronger market demand, as bulls attempted to regain control of the market. Although RSI remains within the bearish zone, these moves indicate a recovery in buying activity, a signal for sustained upside.

If demand holds, Worldcoin will cross its 9- and 21-day MAs at $0.45, setting the stage for a move towards $0.55, where the upside previously collapsed.

However, if this market attempt fails and bears retest the market, WLD will seek support at approximately $0.34.

Final Thoughts WLD rebounded from a $0.30 drop, successfully defended $0.4, and touched a local high of $0.42. Worldcoin experienced renewed risk appetite and eased price pressures, accelerating upside momentum. 

Researchers have revealed that bad actors are targeting dYdX and using malicious packages to empty its user wallets. According to the report, some open source packages published on the npm and PyPi repositories were laced with code that stole wallet credentials from dYdX developers and backend systems.

dYdX is a decentralized derivatives exchange that supports hundreds of markets for perpetual trading. In the report, researchers from security firm Socket mentioned that all the applications using the compromised npm versions are at risk. They claimed the direct impact of the attacks has included complete wallet compromise and crypto thefts. The attack scope includes all the applications that depend on the compromised version, and both developer testing with real credentials and production end-users.

Malicious packages breach wallets associated with dYdX According to the report, some of the packages that have been infected include npm (@dydxprotocol/v4-client-js):(3.4.1, 1.22.1, 1.15.2, 1.0.31 versions) and PyPI (dydx-v4-client): (1.1.5post1 version). Socket mentioned that the platform has processed more than $1.5 trillion in trading volume since it made its debut in the decentralized finance industry, with an average trading volume of $200 million to $540 million. In addition, the platform also has about $175 million in open interest.

The exchange provides code libraries that allow third-party applications for trading bots, automated strategies, or backend services, all of which involve mnemonics or private keys for signing. The npm malware embedded a malicious function in the legitimate package. When a seed phrase that underpins a wallet’s security is processed, the function copies it along with a fingerprint of the device running the application.

The fingerprint allows the threat actor to match stolen credentials to victims across several compromises. The domain receiving the seed phrases is dydx[.]priceoracle[.]site, which mimics the legitimate dYdX service at dydx[.]xyz through typosquatting. The malicious code available on PyPI continued the same credential theft function, although it implements a remote access Trojan (RAT) that allows execution of new malware on already infected systems.

The researchers noted that the backdoor received commands from dydx[.]priceoracle[.]site, adding that the domain was created and registered on January 9, 17 days before the malicious package was uploaded to PyPI. According to Socket, the RAT runs as a background daemon thread, beacons to the C2 server at a 10-second interval, receives Python code from the server, and executes it in an isolated subprocess with no visible output. In addition, it also uses a hard-coded authorization token.

New attack showcases disturbing trend Socket added that once installed, the threat actors were able to carry out arbitrary Python code with user privileges, steal SSH keys, API credentials, and source code. In addition, they could also install persistent backdoors, exfiltrate sensitive files, monitor user activity, and modify critical files. The researchers added that the packages were published to npm and PyPI using official dYdX accounts, which meant they were compromised and used by the attackers.

While dYdX is yet to release a statement addressing the issue, this is at least the third time that it has been targeted in attacks. The previous incident occurred in September 2022 when a malicious code was uploaded to the npm repository. In 2024, the dYdX website was commandeered after the V3 website was hijacked through DNS. Users were redirected to a malicious website that prompted them to sign transactions designed to drain their wallets.

Socket claimed that this latest incident highlights a disturbing pattern of adversaries targeting dYdX-related assets using trusted distribution channels. It noted that the attackers knowingly compromised packages in the npm and PyPI ecosystems to expand the attack surface to reach JavaScript and Python developers working with the platform. Anyone using the platform should carefully examine all applications for dependencies on the malicious packages.

After a heart-stopping crash that wiped 2B from crypto's market cap, February 7 delivers a rebound – Bitcoin blasts above $70,500, Ethereum nears $2,000, and XRP surges double-digits as short-sellers get crushed.

From Crypto Winter to Hot Streak: The SetupThe bloodbath peaked Thursday with Bitcoin plunging 15% to $62,700 – its sharpest drop since FTX's 2022 implosion, dragging total cap below $2 trillion amid miner sells, ETF outflows, and macro fears like rising yields. Extreme fear gripped the market, RSI hitting oversold at 15.82, setting the stage for today's relief rally.

Now, BTC trades at $70,578 (up 13% from lows), holding crucial support after Polymarket odds favored sub-$72K but momentum flipped. This isn't hype-driven; it's technical exhaustion meeting weekend risk-on vibes.

BTC and ETH Spearhead the SurgeBitcoin's rebound erased much of the pain, climbing from $62,702 open to $70,578 close Friday, with volume spiking on bullish engulfing candles signaling potential bottom. Analysts like 10x Research call $60K-$70K the new floor, eyeing $84K if resistance breaks, fueled by whale accumulation and stabilizing tech stocks.​

Ethereum mirrors the move, up to $1,950-$2,000 from $1,700 lows, as layer-2 scaling and ETF inflows lure buyers eyeing 170% rally patterns to $8,500 by year-end.

XRP and Altcoins Steal the SpotlightXRP leads alts with a 25%+ pop to $1.45, RSI rebounding from oversold amid $1.37B ETF holdings and supply squeezes – positioning for new highs if BTC dominance (59%) eases. Solana recovers from $70 lows post-$77M liquidations, DOGE and others ride speculative waves, hinting at altseason stirrings.

Total altcoin market cap jumps 8-12%, with TRON, BNB, and Chainlink outperforming on ecosystem bets.​

$2.6B Liquidations: The Short Squeeze CatalystThe rocket fuel? Massive deleveraging: $2.6B liquidated in 48 hours, including $980M BTC longs and $337M ETH, zapping 311K traders – fourth-worst flush in 90 days per CoinGlass. This short squeeze flipped sentiment from panic (Fear & Greed at 12) to neutral, with open interest rebounding and no fresh longs dominating yet.

Exchanges like Binance saw $1.4B wiped, resetting leverage for sustainable upside.

Deeper Reasons and What's NextBeyond techs, Trump's crypto-friendly admin provides tailwinds despite "crypto winter" doubts. Miners pivot to AI eases supply pressure; prediction markets bet on $72K-$74K noon ET. Macro: Gold/silver volatility and Fed pause hopes aid risk assets.

Risks linger – miner capitulation, quantum threats, regulation, but today's action screams capitulation bottom. If $70K holds, $80K+ beckons; failure risks retest $62K. For alts like XRP, ETF momentum could spark 2026 fireworks. The bear market may be thawing – strap in.

Bitcoin ripped from $60,000 to above $70,000 in less than 24 hours, erasing most of a brutal 14% drawdown that had tested every bottom-calling thesis in the market.

The speed of the reversal, 12% in a single session and 17% off the intraday low, was violent enough to feel like a capitulation resolved. Yet, the mechanics beneath the bounce tell a different story: this was cross-asset stabilization meeting forced-position rebalancing, not a flood of conviction-driven spot demand.

And the derivatives market, still crowded into downside protection, is pricing the possibility that $70,000 becomes a pause rather than a floor.

Forced unwinds met macro stressFeb. 5 opened near $73,100, traded briefly higher, then collapsed to $62,600 by close, a one-day decline that liquidated approximately $1 billion in leveraged Bitcoin positions, according to CoinGlass data.

That figure alone captures the forced-selling cascade, but the broader picture was worse.

Open interest in BTC futures fell from roughly $61 billion to $49 billion over the prior week, according to CoinGlass, meaning the market had already been shedding leverage when the final flush hit.

The trigger wasn't crypto-specific. Reports framed the selloff as a weakening of risk sentiment, driven by tech-stock selling and a volatility shock in precious metals, with silver declining by as much as 18% to around $72.21, dragging down correlated risk assets.

Deribit research confirmed the spillover, noting that derivatives sentiment turned extremely bearish, with funding rates negative, inverted implied volatility term structures, and a 25-delta risk-reversal skew crushed to approximately -13%.

These are classic “crowded fear” conditions in which positioning amplifies price moves in both directions.

A policy narrative added fuel. Reuters reported market reaction to President Donald Trump's selection of Kevin Warsh for Federal Reserve chair, with traders interpreting the choice as signaling balance-sheet contraction and tighter liquidity conditions ahead.

Meanwhile, miners faced acute margin pressure. TheMinerMag reported that hash price fell below $32 per petahash per second, with network difficulty projected to drop roughly 13.37% within two days. This relief valve wouldn't arrive until after the price had already broken support.

Bitcoin's 48-hour price action shows a breakdown from $73,000, sweep below $63,000, local bottom near $60,000, and subsequent rebound above $70,000.Macro reversal plus squeeze mechanicsFeb. 6 opened where Feb. 5 closed, dropped to an intraday low near $60,000, then ripped to a high around $71,422, which it failed to breach three times before dropping back below $70,000.

The catalyst wasn't internal to crypto, but a sharp reversal in the cross-asset tape. Wall Street surged: the S&P 500 up 1.97%, Nasdaq up 2.18%, Dow up 2.47%, and the SOX semiconductor index up 5.7%.

Metals snapped back hard, with gold up 3.9% and silver up 8.6%, while the dollar index fell 0.2%, signaling a looser financial conditions impulse.

Bitcoin moved mechanically with that shift. The correlation isn't subtle: when tech stabilizes and metals rebound, BTC gets pulled along via shared risk exposure.

However, the violence of the snapback also reflects the derivatives' positioning. Skew near -13%, negative funding, and inverted volatility structures create conditions where any macro relief can trigger short-covering and forced rebalancing.

The rebound was driven by a liquidity event, amplified by the unwinding of crowded short positions.

Nevertheless, the forward-looking signal remains bearish. Derive data showing heavy put open interest concentrated at $60,000-$50,000 strike prices for the Feb. 27 expiry.

Derive's Sean Dawson told Reuters that the downside demand is “extreme.” That's not hindsight analysis, but traders explicitly hedging for another leg lower, even after the bounce.

Bitcoin deleveraging chart displays liquidation spike, open interest reset from $62 billion to $49 billion, negative funding rates, and skew reaching negative 13%.Can $70k hold? The frameworkThe case for holding above $70,000 rests on three conditions.

First, the macroeconomic rebound needs to persist, with technology continuing to stabilize, yields not re-tightening, and the dollar not re-tightening.

The bounce was explicitly cross-asset. If equities roll over again, BTC won't decouple.

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Second, leverage needs to continue to cool without fresh forced selling. Open interest has already dropped hard, reducing air-pocket risk.

Third, miner stress needs real relief when the difficulty adjustment lands.

If price holds within that window, the projected 13.37% drop could reduce marginal selling pressure and allow hashrate to stabilize.

The case for another shakeout has three legs.

First, options positioning remains skewed toward the downside. The largest put concentration is at $60,000-$50,000 in late February, a forward-looking signal embedded in market-implied probabilities rather than backward-looking sentiment.

Second, derivatives signals remain fragile. Skew near extremes, recently negative funding, and inverted volatility structures are consistent with a relief rally inside a fear regime rather than a trend reversal.

Third, ETF flow data show persistent outflows. Bitcoin ETFs registered $690 million in monthly net outflows as of Feb. 5.

Although the Feb. 6 results are not yet available, the pattern suggests institutional allocators haven't shifted from de-risking to re-engagement.

Signal bucketMetricLatest reading / regime (as of press time)Bullish confirmation (what change you need)Bearish continuation (what to fear)SourceDerivativesPerp funding rateNegative (below 0%) — “extreme bearishness” regimeFunding flips positive and stays positive across major venues (not just a 1–2 hour blip)Funding stays negative / whipsaws while price chops → “relief rally” riskDeribit Insights / Block Scholes, Week 6 (funding below 0%; BTC funding negative)Options risk25D risk reversal (skew)Short-dated skew as low as ~ -13% (put demand surge)Skew rebounds toward 0 (less demand for downside protection) and holdsSkew remains deeply negative (persistent protection bid)Deribit Insights / Block Scholes, Week 6 (25D RR “as low as -13%”)LeverageFutures open interest (OI)Deleveraging / OI falling (forced liquidation phase); recent reporting highlights ~$55B equivalent OI exiting in 30 daysOI stabilizes (no rapid re-leveraging) while price holds >$70KOI rebuilds quickly into rallies → higher odds of another liquidation legGlassnode: forced deleveraging + long liquidation spikesFlowsSpot BTC ETF net flows (daily/weekly)Net outflows: Feb 4 – $544.9m, Feb 5 – $434.1m; Feb 6 not yet posted on the tapeOutflows decelerate to flat, then modest inflows (even “less negative” helps in thin liquidity)Outflows accelerate (more -$400m to -$500m days) → repeated shakeout riskFarside Investors daily ETF flow tableOn-chain stressRealized losses (7D avg)> $1.26B/day (7D SMA) — capitulation/forced selling still elevatedRealized losses peak then trend down while price holds the $70K area (seller exhaustion)Losses stay elevated or rise into bounces → distribution, not accumulationGlassnode Week On-chain Week 05 (“7D SMA … above $1.26B per day”)MiningHashprice + next difficulty adjustmentHashprice < $32/PH/s (record low); difficulty projected -13.37% next adjustment (~2 days)Difficulty relief arrives and hashrate stabilizes (reduced miner stress/sell pressure) while BTC holds >$70KHashprice falls further / hashrate drops more → miner selling/treasury drawdowns increaseTheMinerMag (hashprice < $32/PH/s; difficulty proj. -13.37%)What $70k actually meansThe level itself isn't magical. The significance lies in its position above Glassnode's identified on-chain absorption cluster between $66,900 and $70,600.

Holding above $70,000 would suggest that the cluster absorbed enough supply to stabilize price action, at least temporarily. Yet, holding requires more than technical support. It requires spot demand returning while derivatives hedging unwinds and institutional flows stabilize.

The rebound off $60,000 was real, but its composition matters. Cross-asset stabilization can reverse if macro conditions shift.

Forced-position unwinding creates mechanical bounces that don't necessarily translate into sustained trends. And options traders are still pricing a meaningful probability of a move toward $50,000-$60,000 over the next three weeks.

Bitcoin reclaimed $70,000, but it is already consolidating below that level, suggesting a pause before another test in which three conditions must occur sequentially: macro risk appetite holding, ETF outflows decelerating or reversing, and derivatives sentiment normalizing beyond short-term relief.

The market delivered a violent snapback, but the forward curve and flow data suggest traders aren't yet betting on durability. The $70,000 level isn't the endgame, it's just the level where the next phase of the argument gets decided.

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ENS dropped plans for Namechain, its own Layer-2 network, as the ENSv2 upgrade stays on Ethereum L1. The ENSv2 will remain fully compatible with Layer-2 networks. In a significant strategic shift, the Ethereum Name Service (ENS) has announced that its next-generation protocol, ENSv2, will stayon Ethereum’s Layer-1 mainchain, dropping previous plans of building its own Layer-2 network, Namechain, according to a blog post by ENS co-founder Nick Johnson on February 6.

ENSv2 is the Ethereum Name Service’s upcoming major upgrade,  intended to expand ENS capabilities to a Layer-2 network, providing users with lower fees and faster transactions than the Ethereum mainnet, as well as to provide structural modifications such as hierarchical registries, which give name owners more power and support for numerous chains.

Why ENS Dropped Its Layer-2 Plans Johnson wrote, “ Ethereum is scaling faster than almost anyone predicted two years ago; we’ve seen a 99% reduction in ENS registration gas costs over the past year, coinciding with Ethereum’s gas limit increases from 30M to 60M in 2025. By staying on L1, we’re aligning ENS with the strongest possible infrastructure guarantees, Ethereum itself.”

As Johnson mentioned, ENSv2 will still be released as planned, and halting work on Namechain will not affect the company’s broader roadmap. By having everything on one blockchain rather than two, he expects names to load faster and run more smoothly for users. Also, Johnson noted that the majority of the improvements made to make ENS easier to use over the last two years will stay in place.

Further, ENS Labs COO Katherine Wu shared a post via her X handle, “It is important to note that ENSv2 is ultimately an upgrade to ENS as it exists today — it’s still ENS! Regardless of where it ultimately gets deployed,” and highlighted new features such as individual registries for each ENS name and new apps currently in testing.

Vitalik Backs ENSv2’s Ethereum L1 Move Vitalik Buterin supported the ENS labs decision by saying, “It’s a good decision!” As he noted that ENS names and records represent a critical on-chain state for the Ethereum ecosystem, should remain easily accessible from anywhere.

Further, he added, “It’s also a semi-financial application, in the sense that buying and holding ENS names has a cost, and ENS names can become very valuable objects. With the expanded scaling roadmap, Ethereum L1 is the ideal place for these applications.”

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The leader in electronic payments is struggling to get back to its pandemic highs.

PayPal (PYPL +1.30%) has not given investors much of a reason to be optimistic. The market hasn't been happy with the drastic slowdown following surging growth during the pandemic, which is understandable. But shares continue to march lower.

Investors weren't pleased with the latest financial results. And the board of directors has decided to fire CEO Alex Chriss and bring in HP boss Enrique Lores, who will start on March 1.

This beaten-down fintech stock is trading 86% below its peak (as of Feb. 3). And the forward price-to-earnings ratio of 9.2 would pique the interest of value investors.

Is PayPal an underrated investment play right now?

Image source: PayPal.

Focus on discretionary spending "Branded checkout represents over half our profit dollars," Chief Investor Relations Officer Steve Winoker said on the Q4 2025 earnings call. Softness in this category can hurt the business, which is what happened.

During the fourth quarter (ended Dec. 31), online branded checkout saw a 1% rise in total payment volume compared to Q4 2024, not an encouraging sign during the holiday season. Engagement is also falling, as transactions per active account fell 5% in Q4.

Management called out retail weakness here in the U.S. as a key headwind. It also doesn't help that competition is intense, from the likes of tech giants like Apple Pay and Alphabet's Google Pay, popular digital wallets that control distribution via integration with smartphones.

This highlights the unique position PayPal has in the payments landscape, focusing heavily on discretionary and online spending, as well as a middle-income demographic, which didn't work to its favor in the fourth quarter. The contrasts with Visa and Mastercard, massive payment networks that both posted double-digit year-over-year revenue growth, and whose leadership teams called out healthy consumer spending and macro conditions. PayPal is proving that the activity on its platform is more sensitive to economic factors, introducing cyclicality.

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Dividend head-scratcher Investors are forward-looking. So it makes sense that management's "low-single digit decline to slightly positive" guidance for adjusted earnings per share in 2026 wasn't well received. Hiring a new CEO after less than three years also doesn't instill confidence among shareholders.

In light of these negative developments, the company just paid its first ever quarterly dividend of $0.14 in December. The total payout was $130 million in the fourth quarter. While PayPal is profitable and generates positive free cash flow, this could be viewed as a head-scratching capital allocation decision. This money could be directed to boost marketing spending by 19% or product development expenditures by 16% (based on the Q4 income statement), which should be the top priority.

PayPal's stock is trading at a dirt cheap valuation. However, this clearly isn't an underrated investment play. Investors should demand fundamental improvements before taking a chance on the business.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Apple, HP, Mastercard, PayPal, and Visa. The Motley Fool recommends the following options: long January 2027 $42.50 calls on PayPal and short March 2026 $65 calls on PayPal. The Motley Fool has a disclosure policy.