5 Things to Watch on
February 4, 2026

Markets are mixed today, after software stocks collapsed sharply in the previous session as long-simmering AI disruption fears tipped into full capitulation, with investors dumping SaaS names indiscriminately in what traders dubbed a “SaaSpocalypse.” Even solid earnings failed to calm nerves, as concerns around pricing pressure, shrinking moats, and uncertain long-term growth drove a broad, momentum-driven sell-everything mindset across the sector.

Eli Lilly (LLY) is up over +8.0% in premarket trading after posting a strong Q4 and issued 2026 guidance well ahead of expectations as demand for its weight-loss and diabetes drugs Zepbound and Mounjaro continues to surge. Management projected revenue of $80B–$83B this year and highlighted expanding Medicare coverage and a potential obesity pill launch as key growth drivers, offsetting near-term pricing pressure from U.S. drug cost deals. The upbeat outlook sharply contrasted with weaker guidance from rival Novo Nordisk (NVO), reinforcing LLY’s leadership in the fast-growing GLP-1 market.

Advanced Micro Devices (AMD) is down over -9.0% in premarket trading after its first-quarter guidance came in below some elevated expectations, despite a solid Q4 revenue beat. Investors had been looking for a bigger upside signal from AI-driven demand, but analysts said expectations were stretched and the revenue surprise was less powerful than it appeared. Management maintained that data center demand remains strong and highlighted large future AI deployments, keeping the long-term thesis intact despite near-term disappointment.

Uber Technologies (UBER) is flat in premarket trading despite topping Q4 revenue expectations on solid mobility and delivery growth. Investors focused on softer net income and forward expectations. Management highlighted strong bookings momentum and reiterated long-term upside from autonomous vehicles, though near-term sentiment was tempered despite the headline beat.

Super Micro Computer (SMCI) is up over +9.0% in premarket trading after posting a strong Q2 beat, with EPS of $0.69 and revenue more than doubling year over year to $12.5B, well ahead of expectations. Management highlighted accelerating AI demand, expanding manufacturing capacity, and raised full-year revenue guidance to at least $40B, reinforcing confidence in continued growth. That said, concerns linger around profitability, as gross margins fell to 6.3%, with critics arguing SMCI is squeezed between premium chip pricing from Nvidia (NVDA) and aggressive pricing demands from customers.