FEB. 3, 2026
Software stocks just had their worst day in history. One company didn't get the memo.
| DAILY MARKET BRIEF |
MARKET PULSE
| S&P 500 | 6,918 ▼ 0.84% | NASDAQ | 23,255 ▼ 1.43% |
| DOW | 49,241 ▼ 0.34% | BTC | ~$75,000 weak |
| 10Y | ~4.2% | GOLD | $4,938 +6% |
| IGV (Software) | ▼ 5% today / ▼ 17% YTD | VIX | rising |
We need to talk about what just happened.
The iShares Expanded Tech-Software ETF (IGV) fell another 5% today and is now down 28% from its recent high and 17% on the year.
That's six straight losing sessions.
Every name you can think of hit a fresh 52-week low: HubSpot, ServiceNow, Atlassian, DocuSign, Salesforce, Workday, Adobe, Asana, PagerDuty.
The WisdomTree Cloud Computing Fund (WCLD) posted its longest losing streak of the year.
A trader at Jefferies coined the term that's going to define this era.
He called it "The SaaSpocalypse."
And honestly? He earned that one.
The sorting hat is on.
THE INSIDER EDGE
THE SAASPOCALYPSE IS HERE
Anthropic dropped legal automation plugins for Claude Cowork today, and the timing couldn't have been worse for the sector.
These weren't demos or whitepapers, they were actual production tools that can do what entire legal-tech companies built their businesses around.
The market's reaction was immediate and violent.
Thomson Reuters plunged 16%, LegalZoom cratered 20%, CS Disco dropped 12%, and London Stock Exchange Group fell 13% just because it has a data analytics business.
The selling wasn't surgical, it was scorched earth.
The Jefferies trader summed it up: "Trading is very much 'get me out' style selling."
Think of it like this.
For 20 years, software companies charged you per seat, per user, per headcount.
AI agents don't need seats.
If 10 agents can do the work of 100 employees, that's 90 fewer Salesforce licenses and 90 fewer ServiceNow subscriptions.
The entire business model just got a crack in the foundation.
But here's the other side.
That same Jefferies trader also said "the pendulum has swung so far to the sell-everything side that super-attractive opportunities will come out of this."
We agree, but not yet because the selling has no bid right now and this is not the knife to catch.
THE OUTLIER
PALANTIR SAID NAH
While every other software stock was getting its teeth kicked in, Palantir climbed nearly 7% today.
They reported an absolute statement of dominance after the bell Monday night.
| Revenue | $1.41B (+70% YoY) vs $1.33B est |
| EPS | $0.25 vs $0.23 est |
| FY26 Guide | $7.2B (+61% YoY) vs $6.2B est |
| US Commercial | +137% YoY |
| Rule of 40 | 127% |
Named after the all-seeing stones in Lord of the Rings. Fitting.
CEO Alex Karp called it "indisputably the best results that I'm aware of in tech in the last decade."
That's capital-G Glazing, but the numbers back it up.
This was their 10th straight quarter of accelerating revenue growth, their commercial business more than doubled, government revenue grew 66%, and the 2026 guide of $7.2 billion was 15% above what the street expected.
The lesson from today is that the SaaSpocalypse isn't killing all software, it's killing software that AI can replace.
Palantir IS the AI.
That's the difference between being the meteor and being the dinosaur.
Still, at 39x 2027 revenue, the valuation makes even the bulls squirm.
Jefferies has an underperform at $70, and RBC says $50.
But Morgan Stanley called them "a clear AI winner on course to reach $10B at the fastest growth rate in software history," so pick your fighter.
METALS
GOLD & SILVER BOUNCE BACK
After getting destroyed last week, precious metals bounced hard today.
Spot gold ripped 6% to $4,938 and silver gained 8% to ~$88.
Analysts are calling last week's selloff a "positioning reset" and not a trend change, and the fear bid is clearly back as software stocks implode and uncertainty builds.
Meanwhile the Dow actually hit a new intraday record at 49,653 before finishing red.
The rotation out of tech into old economy names is getting more aggressive by the day, and we're watching two completely different markets right now.
The fear bid is back.
BOTTOM LINE
THE SORTING HAT IS ON
Today the market started separating the companies that build AI from the companies that AI will replace.
Palantir, NVDA, the infrastructure layer... they're fine.
But the legacy SaaS names charging per seat for workflows an agent can do in seconds are cooked until proven otherwise.
We aren't buying the dip in software yet because there's no bid, but we ARE watching.
The IGV is down 28% from its high and the RSI is getting deep into oversold territory.
When the bounce comes it will be fast and violent, and we want to be ready, not early.
Stay locked in.
Disclaimer: We are a bunch of apes who figured out how to use a Bloomberg Terminal and a group chat at the same time. That combination is either genius or a liability, and we honestly aren't sure which one yet.
Nothing here is financial advice. Seriously. Do your own research. Talk to an actual licensed professional before you YOLO your savings into something you read in a newsletter written by an ape in a hoodie.
Past performance doesn't guarantee future results. The market doesn't care about your feelings, your conviction, or your "diamond hands." It will humble you. It humbles us too. That's the game.
We may hold positions in securities mentioned. Trade at your own risk. Eat Cookiez responsibly. 🍪
