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Good morning investors!

If this is your first time reading, welcome to The Investor’s Edge — a thriving community of over 21,000 subscribers striving to be better investors with an edge in the market.

Every Wednesday we publish “The Mid-Week Wrap-Up” — your ticket to being well informed and staying ahead in the investment game!

This report is designed to help investors of all skill levels break down important stories/topics within the stock market. And best of all, we cut through all of the BS and give you exactly what you need to know in easy to digest, bite sized pieces of content.

This article is designed to truly give you that EDGE in the day ahead!

Grab your afternoon pick me up and let’s dive in.

Market Talk

After a rough start to the week, the major indexes have all turned positive after morning trading. Treasury yields, oil and Bitcoin are all still lower on the week, however.

3 Stories Moving the Market

These are some of the biggest stories so far this week that are having an influence on market action.

Trump agrees to pause tariffs on Canada and Mexico but not on China

President Donald Trump has agreed to delay 25% tariffs on Canada and Mexico for 30 days, preventing an immediate trade conflict.

In return, Canadian Prime Minister Justin Trudeau committed to tightening border security, particularly against migration and fentanyl trafficking. Meanwhile, Mexico’s President Claudia Sheinbaum agreed to deploy 10,000 troops to its northern border in exchange for the U.S. limiting gun exports.

However, a 10% U.S. tariff on Chinese imports has taken effect, prompting China to retaliate with its own tariffs on American goods, including coal, LNG, crude oil, and agricultural machinery.

Trump described the move as an "opening salvo" and hinted at further increases if no deal is reached.

Alphabet shares fall more than 8% on revenue miss, AI investment boost

Alphabet shares are down 8% today as Q4 revenue of $96.47 billion missed Wall Street’s $96.56 billion estimate, despite earnings per share slightly beating expectations.

Growth across key segments—YouTube ads, search, and services—slowed compared to last year, raising concerns about the company’s ability to sustain momentum.

Google Cloud revenue also disappointed at $11.96 billion, below the $12.19 billion forecast, despite a 30% YoY increase. The company cited supply constraints limiting its ability to meet AI-driven cloud demand.

Adding to investor concerns, Alphabet announced aggressive AI-related capital expenditures, planning to spend $75 billion in 2025—far above the expected $58.84 billion. The company sees this as necessary for expanding server capacity, data centers, and Google DeepMind infrastructure.

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*The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.
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Earnings: AMD, Palantir, Disney and more report results

Earnings season is off to a strong start. Here’s how some of the major companies that reported this week have performed:

AMD shares plunged despite beating earnings and revenue expectations, as outlook was not quite as strong as anticipated. Here are the key numbers from the report:

• Earnings per share: $1.09 vs. $1.08 expected

• Revenue: $7.66 billion vs. $7.53 billion expected

Palantir shares surged after beating earnings and revenue estimates and providing stronger than expected guidance. Here are the key numbers from the report:

• Earnings per share: $0.14 vs. $0.11 expected

• Revenue: $827.5 million vs. $777.6 million expected

Disney shares fell despite beating earnings and revenue expectations, as Disney+ subscribers fell in the quarter and outlook was not quite as strong as anticipated. Here are the key numbers from the report:

• Earnings per share: $1.76 vs. $1.45 expected

• Revenue: $24.69 billion vs. $24.67 billion expected

Merck shares despite beating earnings and revenue expectations, as outlook was impacted by its projected Gardasil sales in China. Here are the key numbers from the report:

• Earnings per share: $1.72 vs. $1.61 expected

• Revenue: $15.62 billion vs. $15.48 billion expected

Uber shares declined despite beating earnings and revenue expectations, as outlook was not quite as strong as anticipated. Here are the key numbers from the report:

• Earnings per share: $3.21 vs. $0.50 expected

• Revenue: $11.96 billion vs. $11.76 billion expected

*Note - our full breakdown of these reports, as well as several others, will be sent out in Friday’s Earnings Recap.

In Other News

In this section we'll be curating a selection of news headlines we think you'll find interesting. If a topic catches your eye, click the provided links to read more about it.

• Apple shares slide after China reportedly considers probe into App Store practices

• Palantir soars 24% to record high as AI powers strong earnings and guidance

• AMD shares drop 7% on disappointing data center revenue

• Merck (MRK) Tops Q4 Earnings and Revenue Estimates

• Disney tops quarterly profit estimates, but starts to lose Disney+ streaming subscribers

• Uber beats fourth-quarter revenue expectations but offers soft guidance

• PepsiCo forecasts weak annual profit as US snack, soda demand dips

• PayPal Q4 Earnings: Revenue And EPS Beat, Margin Pressure, $15 Billion Buyback, Outlook And More

• Chipotle earnings beat estimates, but stock falls on weak same-store sales forecast

• Ferrari stock revs higher after Q4 global sales rose by 14%

• Spotify shares pop 13% after company reports first profitable year

• Snap Shares Tank as Disappointing Outlook Overshadows Sales Beat

• Pfizer shows profit growth from cost cuts and steadier COVID sales

• Workday to Lay Off 1,750 Employees as Part of Restructuring Plan

The Second Half

Earnings season carries on as several major names are scheduled to report, while we get a few notable economic reports to end the week.

Earnings Reports

Many of the major earnings this week are behind us but we still have a busy next few days as there are 4 companies we cover that will be reporting earnings.

• Wednesday 2/5: Qualcomm

• Thursday 2/6: Amazon, Eli Lilly, and Hershey

• Friday 2/7: --

Here is the calendar of earnings releases scheduled for the rest of the week:

Economic Reports

Earnings may get the headlines but Friday’s nonfarm payrolls report will be closely watched by the market. We also get initial jobless claims, the unemployment rate, and consumer sentiment to end the week.

Here is the full calendar of events scheduled for the remainder of the week:

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Thank you for reading this edition of the Mid-Week Wrap-Up.

Until next time investors!

Mark & Chris

The Investor’s Edge

Disclosure

This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.