Key Takeaways
- Amazon (AMZN) exceeded Q4 sales and AWS growth expectations, with cloud accelerating to 24% ex-FX, despite a minor EPS miss, reinforcing AWS as a primary profit engine.
- Bitcoin (BTC) plunged below $70,000 for the first time since November, wiping out all post-election gains amid leveraged liquidations and a broader risk-off sentiment in crypto markets.
- The NASDAQ experienced a significant decline, closing down 357.8 points, or 1.56%, at 22,546.76, reflecting a broader market downturn.
- Novo Nordisk (NVO) is preparing legal action against Hims & Hers (HIMS) over a "copycat" Wegovy pill, sparking a pharmaceutical sector dispute.
- Microchip Technology (MCHP) surpassed Q3 earnings and revenue estimates and provided an optimistic Q4 outlook, while MicroStrategy (MSTR) reported its Q4 update with substantial Bitcoin holdings, though GAAP EPS missed estimates due to crypto volatility.
Market Overview and Cryptocurrency Volatility
U.S. equities closed lower on Thursday, with the NASDAQ unofficially ending down by 357.8 points, or 1.56%, at 22,546.76. This decline was part of a broader "risk-off sentiment" that also saw the S&P 500 fall 1.2% and the Dow Jones Industrial Average drop nearly 600 points, or 1.2%.
Adding to market jitters, Bitcoin (BTC) slid below $70,000 for the first time since November, erasing all post-Trump election gains. The cryptocurrency's decline, which saw it briefly trade near $63,000, was attributed to leveraged liquidations and a general shift away from risk assets in crypto markets.
Tech Sector Performance: Amazon Shines, Microchip and MicroStrategy Report
Amazon (AMZN) delivered a strong fourth quarter, beating sales and AWS expectations. The e-commerce giant reported Q4 revenue of $213.39 billion, surpassing analyst estimates of $211.49 billion. While its adjusted EPS of $1.95 slightly missed the $1.96 consensus, cloud growth in Amazon Web Services (AWS) accelerated to 24% year-over-year excluding foreign exchange, marking its fastest growth in 13 quarters. AWS remains a key driver of profit momentum for the company. Looking ahead, Amazon forecasts significant capital expenditures for 2026, ranging from $175 billion to $185 billion, roughly double the $91.45 billion spent in 2025, primarily for AI infrastructure.
In other tech news, Microchip Technology (MCHP) reported Q3 adjusted EPS of $0.44, exceeding the estimated $0.42, on net sales of $1.19 billion, slightly above the $1.18 billion estimate. The company also provided an optimistic Q4 outlook, projecting net sales between $1.24 billion and $1.28 billion and adjusted EPS of 48 cents to 52 cents, both at or above analyst expectations.
Meanwhile, MicroStrategy (MSTR) provided its Q4 and full-year update, revealing substantial Bitcoin holdings of 713,502 BTC as of February 1, with a total cost of $54.3 billion, or $76,052 per bitcoin. The company's Q4 revenue came in at $123.0 million, slightly beating the $118.5 million consensus. However, MicroStrategy posted a GAAP EPS of -$42.93, significantly missing the -$20.99 estimate, largely due to unrealized losses on its Bitcoin holdings.
Pharmaceutical and Global Trade Developments
A significant dispute emerged in the pharmaceutical sector as Novo Nordisk (NVO) slammed Hims & Hers (HIMS) over its cheaper, copycat version of the Wegovy pill. Novo Nordisk has vowed legal and regulatory action, calling the move "illegal mass compounding" that poses a "significant risk to patient safety." Hims & Hers is offering an introductory price of $49 for the first month, a substantial discount compared to Novo Nordisk's authentic Wegovy pill, which costs $149 for the starting dose. This comes after Novo Nordisk previously terminated a partnership with Hims & Hers in mid-2025 due to similar compounding and marketing disagreements.
On the global trade front, Canada announced plans to revamp its auto tariffs with a new "import credit" system. This initiative aims to incentivize domestic production, counter U.S. tariff pressure, and safeguard auto plants and jobs within the country. Canada has maintained 25% counter-tariffs on U.S.-made cars and trucks.
In the aviation industry, Saudi Arabia's flagship carrier is in early talks with both Boeing (BA) and Airbus (AIR) for a potential historic order of at least 150 jets. This move is part of the Kingdom's accelerated push to become a global tourism and aviation hub. The airline has made significant fleet investments in recent years, including an order for 105 Airbus narrowbody jets in 2024 and over three dozen Boeing 787 Dreamliners in 2023.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.