Major Indexes Close Higher to Begin Week; Tech Stocks Power Nasdaq, S&P 500; Dow Hits New All-Time High

AppLovin Stock Surges as Big Critic Walks Back Claims

FROM 9 hr 2 min ago

One of AppLovin’s most vocal critics is walking back some of its claims.

Shares of AppLovin (APP) jumped over 13% Monday, leading gainers on the S&P 500, after CapitalWatch—a self-described “vigilante of capital flowing in and out of stock markets”—over the weekend posted a correction and apology on social media regarding some of its accusations against a shareholder.

“We are formally retracting specific characterizations and allegations contained therein regarding Mr. Tang Hao,” said CapitalWatch, adding that determined money-laundering claims in a report last month linking him to criminal organizations didn’t meet its standards.

CapitalWatch, which has said it has no financial interest in AppLovin, said its retraction hasn’t changed its stance about the adtech company, which CapitalWatch has previously called “the ultimate monument to 21st-century new-type transnational financial crime.”

Its Jan. 20 report alleged “systemic compliance risks and suspicions of major financial crimes within the core capital structure” of AppLovin, saying the company “views Anti-Money Laundering (AML) laws as non-existent.”4

CapitalWatch said it plans to issue a fresh report on AppLovin that will “raise professional and necessary inquiries regarding figures that lack reasonable explanation.” AppLovin last month sent a cease and desist letter to CapitalWatch demanding it retract its claims, which the company called “defamatory and baseless.”

Despite Monday’s gains, shares of AppLovin—which late last year joined the S&P 500 index—have lost about 37% from December’s highs amid heightened scrutiny. Still, the stock is up about 20% from this time a year ago.

–Kara Greenberg

Super Bowl Sunday’s Big Winners? The Seattle Seahawks—and Prediction Markets

FROM 10 hr 52 min ago

The stakes were high this Sunday—for both football fans glued to the Seahawks-Patriots Super Bowl and traders watching the game playing out on prediction markets.

Prediction platforms like Polymarket and Kalshi did not run Super Bowl ads—the NFL put them on the no-fly list alongside tobacco and firearms companies—but they still saw a surge in activity. Aside from the headline “Will the Seattle Seahawks or the New England Patriots win the Super Bowl” trade, event contracts ran the gamut: There was trading on how many people would tune in, which celebrities would attend, which musical acts would perform during the halftime show, and more.

Kalshi saw a surge in total trading volume to $871 million, topping its prior daily record of $543 million, according to Bank of America analysts. Its app was among the most sought-out on app stores on Sunday, according to BofA, outpacing even DraftKings (DKNG).

The bank estimated that some 75% of Kalshi’s volumes were on the game or game-related markets—and that prediction markets’ Super Bowl betting came to as much as 20% of that of regulated sports books. The American Gaming Association estimated that some $1.76 billion would be wagered legally on Super Bowl LX.

The surge in prediction markets activity over Super Bowl weekend promises continued debate over whether those platforms peddle hedging tools for the masses, or another way to gamble. One Polymarket user, who placed a series of winning bets on the Seahawks, appears to have made over $1.2 million.

Some Experts Argue Software Stock Sell-Off Was ‘Too Harsh’ Despite AI Fears

FROM 11 hr 28 min ago

All the talk of AI “eating” software could have some investors eating their words, according to a recent Jefferies report.

A rough year for software stocks morphed into “Saaspocalypse” last week when the release of new agentic tools from Anthropic amplified fears that AI is set to disrupt the software industry. The iShares Expanded Tech-Software Sector ETF (IGV) fell about 8% last week, putting the fund down about 22% since the start of the year. But Jefferies analysts see opportunities for investors who can handle uncertainty. (Software stocks were surging Monday afternoon, helping push major indexes sharply higher.)

“The negative sentiment is reaching extreme levels,” wrote Jefferies analysts in a note on Sunday. By their measure, sentiment among software investors is nearly as negative as during the 2008 Global Financial Crisis and the Dotcom Crash of the early 2000s.

After last week’s rout, more than 40% of the software stocks in Jefferies’ coverage are trading near historically low valuations. But analysts argue proclamations of software’s death are “premature,” and that “incumbents that embrace the transition should emerge as [long-term] winners.” 

Software stocks have been dogged by fear that AI threatens the industry on multiple fronts. AI agents and what’s becoming known as “vibe coding” could erase software companies’ competitive moat. Increased competition from AI-native startups like OpenAI and Anthropic could pressure industry margins. And AI-driven efficiencies at software buyers could shrink headcount, undermining the industry’s seat-based pricing model.

Read the full article here.

–Colin Laidley

Kyndryl Stock Nosedives on Slashed Outlook, Notification of Late Filing

FROM 11 hr 44 min ago

Monday has not exactly been a stellar day for Kyndryl shareholders.

Kyndryl (KD) stock nosedived 55% after the company—which bills itself as “a leading provider of mission-critical enterprise technology services”—slashed its fiscal 2026 outlook, filed a Notification of Late Filing with the Securities and Exchange Commission, and announced three executives were out.

New York-based Kyndryl, which was spun off from IBM in 2021, reported preliminary fiscal 2026 third-quarter results that came in below analysts’ estimates Monday, and also cut its full-year guidance for adjusted pretax income, adjusted EBITDA margin, free cash flow, and constant-currency revenue.

In addition, the firm named an interim CFO, as well as an interim General Counsel and an interim Corporate Controller, effective immediately. It did not give a reason for the departures of their predecessors but did file a Form 12b-25 with the SEC, saying it was unable to file its official quarterly report on time after it received “voluntary document requests” from the agency’s Division of Enforcement.

Kyndryl added it “anticipates reporting material weaknesses in the Company’s internal control over financial reporting for the period covered in the Quarterly Report, as well as for the full fiscal year ended March 31, 2025, and the first two fiscal quarters of fiscal year 2026.”

The SEC review was prompted by a report by short seller Gotham City Research last March that Kyndryl “manipulates reported Adj EBITDA + Adj. FCF to artificially give the appearance that it generates profits and cash flow. In reality, KD generates losses and burns cash.”

Including today’s sharp declines, Kyndryl shares have lost three-quarters of their value over the past year.

Big Grocery Chain Kroger Needs to Take on Walmart—So It Named an Alum Its CEO

FROM 13 hours ago

Kroger is locked in a battle with Walmart in the grocery business. Now it’s bringing in a CEO trained at the retail giant to help it compete.

Kroger Co. (KR) on Monday said it named Greg Foran its CEO after an “extensive” search. The grocer said Foran helped Air New Zealand and Walmart U.S. build up their digital acumen, while overseeing 20 straight quarters of comparable domestic sales growth at Walmart (WMT).

That record may bode well for Kroger, which could use a review of its online sales strategy, UBS said in a research note Monday. Analysts said fundamental progress will take time; Foran is likely to focus on the basics, such as more competitive wages and prices, first, UBS said. The company had sought reinforce its market position by merging with Albertson’s (ACI), but that deal was blocked in late 2024.

A number of Kroger’s rivals, including Walmart and Amazon (AMZN), have won over customers by focusing on e-commerce and delivery. Selling groceries is growing more competitive as discounters, such as Aldi, expand; weight loss drugs reshape shopping patterns; and pharmacy sales potentially fall in response to new government policies, Morgan Stanley said.

“The grocery wars are intensifying with e-commerce a central battleground, price investments driving heightened competition, and few industry drivers that can help relieve the pressure buildup,” its analysts said earlier this month. 

Read the full article here.

–Sarina Trangle

Oracle Shares Soar as D.A. Davidson Upgrades Stock to ‘Buy’

FROM 14 hr 7 min ago

D.A. Davidson analysts believe Oracle (ORCL) “will not be vibe coded away.”

Oracle shares soared about 12% to nearly $160 in recent trading after the analysts upgraded the stock to “buy” from “neutral” on Monday, while keeping their $180 price target.

The analysts wrote that they “believe that a revamped OpenAI will … be able to live up to its obligations this year, including to Oracle. We believe this will remove the biggest concern from ORCL.”

D.A. Davidson added that it “had been very critical of Oracle and OpenAI, but believe the market is now more appropriately reflecting the risks involved, especially in this relationship.”

Oracle shares soared to a record-high $345.72 on Sept. 10, but have fallen sharply over the five months since, as investors have been concerned about a possible AI bubble inflated by debt-laden investments.

Even with today’s sharp gains, Oracle stock is nearly 20% lower thus far in 2026.

There Was an ‘Unmistakeable’ Flight to Value Last Week. Here’s What Investors Bought.

FROM 14 hr 40 min ago

When the beat changes, investors switch up their moves. Last week, they rushed to re-tune their portfolios.

Big tech stocks, metals, and digital assets hit the skids. Institutional and individual investors alike started to favor certain pockets of the market, leading to questions about whether the changes will amount to a meaningful shift in allocations or just a short-term tweak.

The institutional “smart money” stepped out of technology stocks before they took a beating last week, according to recent data. Retail investors likely suffered more, but many are getting choosier in their dip-buying efforts. (U.S. stocks, broadly speaking, were rising to start this week.)

The energy, industrials, and materials sectors—where institutions parked after pulling out of the tech sector last month—were rare bright spots last week, according to Vanda Research. Individual investors plowed into the energy sector, Vanda said, with Wednesday marking the “largest net retail buying” in State Street’s Energy Select Sector’s SPDR ETF (XLE) since March 2022. (They also bought into stocks like Chevron (CVX) and Exxon (XOM).)

Read the full article here.

–Crystal Kim

Hims & Hers Stock Plunges While Novo Nordisk Gains as Weight-Loss Drug Wars Take New Turn

FROM 15 hr 21 min ago

Hims & Hers Health shares are tumbling after a major blow to its weight-loss lineup.

Shares of the telehealth provider were down 25% Monday morning after Hims & Hers (HIMS) said in a statement over the weekend that it would stop offering its compounded semaglutide pill, just days after launching the product.

The pill was marketed as offering the same active ingredient as Novo Nordisk’s (NVO) Wegovy pill that received approval from the Food and Drug Administration in December, and was swiftly attacked by the Danish drugmaker. Novo Nordisk said Monday that it has filed a lawsuit against Hims & Hers, asking a court to “permanently ban Hims from selling unapproved, compounded drugs that infringe our patents,” and is seeking damages. Shares of Novo Nordisk climbed about 4% in recent trading.

Hims & Hers, which called the lawsuit a “blatant attack by a Danish company on millions of Americans who rely on compounded medications for access to personalized care,” said it plans to “continue to fight to provide choice, affordability, and access.”

Read the full article here.

–Aaron McDade

Tech Sector Powers S&P 500 Monday Morning

FROM 16 hr 6 min ago

Technology shares are boosting the overall S&P 500 to begin the week.

The S&P 500 Information Technology Sector was the top performer of the 11 industries tracked by the benchmark index Monday morning, with gains of 1.4%.

AppLovin (APP) and Oracle (ORCL) paced the S&P 500 with gains of 11% and 9%. Other sector leaders include Corning (GLW), Teradyne (TER), and Palantir (PLTR), up a respective 7%, 5%, and 4.5%.

Seven of the 11 sectors were in the green about 90 minutes into the trading day. Health Care was the worst-performing sector, down roughly 0.7%.

Wait Times for Calls to Social Security Have Been a Problem. A Change Could Make Them Better—Or Worse

FROM 16 hr 6 min ago

The Social Security Administration has significantly reduced wait times for beneficiaries calling its national 800-number over the past two years. Next month, the agency is making more changes to how it handles help requests that may speed things up—or make things worse for beneficiaries.

Workflow management changes coming on March 7 will transition SSA employees from working only on local claims and cases to handling cases nationwide. The move is an effort to even out the workload for SSA agents. Separately, the agency will also roll out a new system that beneficiaries can use to schedule in-person appointments.

“These tools will strengthen SSA’s ability to provide Americans with expanded opportunities to schedule appointments and improve staff efficiency,” an SSA spokesperson said in an email. “There will be increased availability for Americans to receive the support they need over the phone or in person.”

However, there is a chance the moves will instead increase the workload of SSA employees, who have faced a shrinking workforce for years. The number of Social Security beneficiaries continues to rise, while the agency cut 7,000 positions, or about 12.5% of staff in 2025.

“This … may have evened out the workload a little bit,” said Ed Weir, a former manager of a Las Vegas Social Security field office. “But that’s before they cut over 7,000 positions. So all bets are off now.”

Read the full article here.

–Elizabeth Guevara

Monday.com Stock Tanks on Soft Guidance

FROM 18 hr 37 min ago

Monday is not looking like it’s going to be a joyous day for Monday.com (MNDY) stockholders.

Shares of Monday.com tanked 15% before the bell after the Tel Aviv-based AI work platform firm issued weaker-than-expected current-quarter and full-year guidance.

Monday.com said it expects fiscal 2026 first-quarter revenue of $338 million to $340 million and adjusted operating income of $37 million to $39 million. Analysts surveyed by Visible Alpha expect $342.6 million and $45.3 million, respectively.

For the full year, the Israeli firm sees revenue between $1.452 billion and $1.462 billion and adjusted operating income of $165 million to $175 million. Visible Alpha consensus calls for $1.47 billion and $219.0 million.

Monday.com’s fiscal 2025 fourth-quarter adjusted earnings of $1.04 per share and revenue of $333.9 million topped estimates. The company said it had record net adds of customers with more than $100,000 in ARR.

“While foreign exchange rates have created some near-term pressure on margins, the underlying fundamentals remain healthy and we continue to see momentum with larger customers,” CFO Eliran Glazer said.

The company’s shares entered Monday having lost a third of their value over the last month. They are down more than 60% over the past 12 months.

The Data Industry Has Lost 6,700 Jobs Amid AI Boom

FROM 19 hr 21 min ago

The AI investment boom has been a job creation dud, even within its own industry.

Despite massive investments in data centers and artificial intelligence software—an estimated $427 billion in 2025 alone, according to RBC—the year ended in the midst of a job creation slump.

Remarkably, there were actually fewer people working in the industry at the center of the AI boom: in December 2025, 477,700 people were employed in “Computing Infrastructure Providers, Data Processing, Web Hosting, and Related Services” according to the Bureau of Labor Statistics, down 6,700 from December 2024.

Tech companies are pouring billions into the construction of new data centers and are even building nuclear power plants and gas turbines to power them. Elon Musk says he is going so far as making plans to build data centers in outer space for his xAI project. But very few people actually work in those data centers once they’re up and running.

To the extent that AI is affecting the job market, the debate has focused on whether the software is costing jobs, not creating them. Several major employers have said they are reducing headcounts as they expand the use of AI. Economists have dubbed the phenomenon a “jobless profit boom.”

–Diccon Hyatt

Stock Futures Point Lower After Volatile Week

FROM 19 hr 45 min ago

Futures contracts connected to the Dow Jones Industrial Average pointed 0.1% lower.

S&P 500 futures were down 0.3%.

Nasdaq 100 futures fell 0.5%.