Welcome to the MarketReader Minute.

Below are AI-generated insights on today’s premarket moves, powered by MarketReader technology.

If you find the insights useful, you may subscribe to our new sector-specific newsletter or share this on Twitter.

Friday, February 20

Noteworthy US mega-cap moves today: Alphabet Inc (GOOGL) +1.6%. Alphabet Inc (GOOG) +1.5%. Mastercard Inc (MA) +1.0%. 

Global equity markets are trading lower following disappointing U.S. GDP growth data and rising geopolitical tensions between the U.S. and Iran. The U.S. economy expanded at an annualized rate of only 1.4% in Q4 2025, significantly below expectations of a 3% increase, which has raised concerns about economic momentum.

Additionally, inflation data released this morning showed that the PCE price index rose more than expected, with core PCE inflation increasing to 3%. This further complicates the Federal Reserve's outlook on interest rates amid ongoing discussions about potential rate cuts later this year. This combination of weaker growth and persistent inflation pressures is contributing to cautious sentiment in the markets.

In Asia, equity indices are also down sharply as investors react to these developments alongside concerns over private credit market stability and escalating oil prices driven by geopolitical risks related to Iran's nuclear negotiations with the U.S., which have pushed WTI crude oil prices to their highest levels since August at around $66.80 per barrel.

iShares China Large-Cap ETF (FXI) [-1.6%]
The iShares China Large-Cap ETF (FXI) has experienced a decline of approximately 1.6% in pre-market trading, reflecting broader market volatility. China's recent introduction of subsidized products into the U.S. market has raised concerns about trade dynamics and competitive practices, potentially straining U.S.-China relations. Additionally, geopolitical tensions between the U.S. and Iran are contributing to global market volatility, further impacting FXI's performance. Significant negative returns were observed among key holdings, including TCEHY, XIACY, and TCOM, which contributed to the overall decline. The AUD/USD currency pair's slight decrease may also correlate with FXI's movement, indicating a potential relationship between these assets in the current market environment.

United States Oil Fund LP (USO) [-0.9%]
The United States Oil Fund LP (USO) has experienced a price decline of 0.9% since Thursday. Escalating tensions regarding Iran's nuclear program are influencing oil markets, with President Trump contemplating a limited military strike on Iran, which could occur within days. This situation has led to an ultimatum for Iran to negotiate, with potential military action raising concerns about regional stability. Additionally, JP Morgan forecasts that oil prices may fall into the $30s per barrel by 2027 due to significant market oversupply, while Goldman Sachs predicts an average of $53 per barrel for WTI crude in 2026. Social media discussions highlighted increased volatility in oil prices, with the oil volatility index reaching its highest level since last June, reflecting market uncertainty. Brent Crude prices have dropped significantly year-to-date and are currently stable around $62.59 per barrel.

APP | +4.5% | +6.4B
Applovin Corp | Application Software
Applovin Corp's shares have seen a notable increase today, attributed to unconfirmed reports of a collaboration with OpenAI to monetize ChatGPT through advertising. This speculation gained traction following a capital raise call by OpenAI, which reportedly mentioned its engagement with Applovin. Social media discussions have echoed this sentiment, highlighting the potential significance of the partnership. Earlier reports noted a surge in after-hours trading, with shares rising substantially following initial speculation. Recent social media posts also projected strong financial performance, with an anticipated $5 billion in free cash flow for the year. However, some skepticism remains regarding Applovin's strategic direction, particularly concerning its plans to build a social media platform in a crowded market.

CPRT | -10.3% | -3.3B
Copart Inc | Diversified Support Services
Copart Inc reported its second-quarter fiscal 2026 financial results, revealing a gross profit of $492.812 million and operating expenses of $732.964 million, leading to an operating income of $388.71 million. The company missed earnings expectations with an EPS of $0.36, below the estimated $0.39, and revenue of $1.12 billion, which was short of the consensus estimate of $1.15 billion. Net income declined to approximately $349.967 million from $387.4 million year-over-year. Following this announcement, analysts at Baird reduced their price target for Copart to 48 from 52 while maintaining an Outperform rating. Concurrently, social media discussions have raised concerns regarding the company's financial strategies, particularly its lack of share buybacks despite having over $5 billion in cash and no debt, as well as the stock's drop to a three-year low around 33 after-hours trading.

AKAM | -6.0% | -944.1M
Akamai Technologies Inc | Internet Services & Infrastructure
Akamai Technologies Inc reported its fourth-quarter results on February 19, 2026, showing a 36% decline in net income to $85.1 million, largely due to a restructuring charge. While Q4 revenue reached $1.095 billion, surpassing estimates, the company issued fiscal 2026 guidance that fell short of consensus expectations, projecting non-GAAP EPS between $6.20 and $7.20 against a $7.34 estimate. Revenue guidance for FY26 was set at $4.4 billion to $4.55 billion, also below consensus. Following the announcement, shares dropped significantly, with a decline of approximately 12%. Despite reporting an EPS of $1.84, exceeding estimates, and a 7.4% year-over-year revenue increase, concerns over weak guidance for Q1 and FY26, attributed to rising memory chip costs linked to the AI boom, led to a further decline of around 10% in stock price shortly after the report.

OWL | -3.8% | -598.3M
Blue Owl Capital Inc | Asset Management & Custody Banks
Blue Owl Capital Inc has encountered significant challenges, failing to secure financing for a $4 billion data center project in Lancaster, Pennsylvania, co-developed with CoreWeave. This development was reported approximately 54 minutes ago and has contributed to a decline in the company's stock, which is down nearly 3% in pre-market trading. Social media discussions have highlighted lender apprehensions regarding high-risk AI debt as a key factor in the financing difficulties. Additionally, Blue Owl's recent unloading of $1.4 billion in assets has raised concerns about warning signs in private credit markets. Further complicating matters, it has been noted that one of the insurance asset management arms purchasing Blue Owl's loans is owned by the company itself, categorizing it as a related party transaction. These issues reflect broader concerns about Blue Owl's financial capabilities and the state of the AI infrastructure sector.

GOOGL | +1.4% | +53.5B
Alphabet Inc | Interactive Media & Services
Alphabet Inc.'s Waymo faces setbacks following New York Governor Kathy Hochul's withdrawal of a proposal to allow robotaxi services outside New York City, highlighting regulatory challenges for autonomous vehicle expansion. In a notable partnership, Zillow has teamed up with Google NotebookLM to enhance AI-driven home-buying guidance. On the financial front, Tigress Financial has revised its price target for GOOGL to 415 from 280 while maintaining a Strong Buy rating. Additionally, GOOGL, alongside AMZN, META, and MSFT, plans to invest approximately 650 billion this year in data centers, chips, and infrastructure as part of the accelerating AI race. In other news, a federal grand jury has indicted three Silicon Valley engineers for allegedly stealing trade secrets from Google and other tech firms.

Thank you for spending a minute with us. 

If you have 2 more minutes, watch this demo of the MarketReader Platform: