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📉 Tech Crashes
Pip Munch
February 04, 2026
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☕️ GM Munchers! Yesterday the market dropped for literally no reason and I tried explaining this to my wife. She gave me the exact same look she gives when I confidently say "I can fix that" while holding a screwdriver backwards. Spoiler: I cannot fix that.
On today’s menu:
📉 Tech Crashes For No Reason
🥇 Gold and Silver's Revenge Tour
💳 PayPal's 20% Nosedive
😥 Bitcoin's Rough Ride Continues
😬 This Billionaire Just Issued a Scary Warning
Yesterday’s numbers:
S&P 500 | 6,917 | -0.84% |
Nasdaq | 23,255 | -1.43% |
Dow Jones | 49,240 | -0.34% |
Bitcoin | $76,700 | -2.50% |
BREAKING NEWS
📉 When Nothing Happens But Everything Falls Apart
Yesterday was one of those days where the market just decided it didn't feel like going up. No major headlines. No catastrophic earnings bomb. Just... bad vibes.
The indexes all closed red even after a late-day rally attempt. The biggest culprit? Nvidia dropped 5%, wiping out tens of billions in market cap and dragging the entire tech sector down with it. When the king of AI chips sneezes, everyone else catches pneumonia.
Why markets care: Days like this are sentiment-driven, which is trader-speak for "nobody knows why, but everyone's selling anyway." Sometimes the market just needs to take a breather after massive runs. This wasn't panic—it was profit-taking dressed up as caution.
The Munch Take: Risk-off days with no clear catalyst are actually easier to handle than you think. No news means no new narrative to fight. If fundamentals haven't changed and you believe in your positions, these are shakeout days designed to scare weak hands. Hold steady or pick up quality names at a discount.
🥇 Gold & Silver's Revenge Tour
While everything else bled yesterday, gold and silver woke up from their post-Friday depression and went absolutely ballistic. Gold ripped higher and silver tagged along for the ride.
What happened: The dollar took a breather—DXY dropped about 0.22%—which gave commodities room to breathe. But the real story is technical. Friday's crash (silver down 33%, gold down 3-5%) was pure forced selling. Traders using leverage got margin called and had to dump at any price. That selling wave is now done.
Why markets care: With the "weak hands" flushed out, buyers stepped back in to scoop up gold at a discount. This is classic "dead cat bounce" territory—when something falls straight down, it often bounces straight up. This 7% move is exactly that.
The Munch Take: Friday was panic. Yesterday was recovery. The fundamental reasons people buy gold—geopolitical fear, central bank buying, debt worries—haven't changed. The price just got cheaper for a few days. If you're long precious metals, breathe easy. If you sold in the panic, well... sorry about that.
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February Stock PickLet us know which stock you'd like us to do a deep dive on for February! |
STOCKS
💳 PayPal's 20% Nosedive (And Nancy Knew)
PayPal crashed 20% yesterday after reporting absolutely disastrous earnings.
Revenue came in at $8.68 billion versus the $8.79 billion Wall Street wanted.
EPS hit $1.23 instead of the expected $1.29.
But the real gut punch? PayPal warned that Q1 2026 earnings will likely decline by mid-single digits, and the full year 2026 is expected to be essentially flat. Translation: no growth.
Why markets care: PayPal's "branded checkout" business—that little PayPal button you see on websites—only grew 1% last year. That's their most profitable segment, and it's basically dead in the water. Shoppers are ditching PayPal for Apple Pay and Google Pay.
To make matters worse, CEO Alex Chriss is out, replaced by Enrique Lores (currently at HP) starting March 1. Leadership chaos plus zero growth equals stock has a panic attack.
Oh, and one more thing: Nancy Pelosi sold up to $500,000 worth of PayPal stock last month. The queen of perfectly-timed trades strikes again.
The Munch Take: PayPal is down 85% over five years and now trading below its 2015 IPO price of $41.63. This isn't a dip—it's a structural collapse. The company is losing its competitive edge, profits aren't growing, and leadership is scrambling. Unless something drastic changes, this is a stay-away situation. Not every fallen angel flies again.
MARKET OVERVIEW
🍿 Tasty Movers & Shakers
🤔 $PLTR Palantir had an absolute monster day after crushing Q4 earnings. Revenue soared 70% year-over-year and profit margins hit 57.5%. We still don't know what they actually do (government AI stuff? data sorcery?), but the stock ripped nearly 7%. Sometimes it's better not to ask questions.
🌯 $CMG Chipotle got obliterated, dropping 11% after reporting another sharp decline in restaurant traffic. Turns out charging $18 for a burrito bowl eventually catches up with you. Who knew?
🥶 $PEP Pepsi jumped 4.93% after beating Q4 expectations with improved organic sales. They're also cutting snack prices, which means my wife will finally stop guilt-tripping me about the grocery bill. Small victories.
❌ France raided Elon Musk's Twitter (X? Whatever we're calling it) headquarters in Paris yesterday. European regulators and Elon—a love story for the ages. This will surely end well.
😏 $HOOD Remember when we mentioned Robinhood yesterday as an interesting buy after dropping 40% from all-time highs? Cathie Wood apparently reads our newsletter because she dropped $35 million on the stock. Either we're geniuses or she's feeling adventurous. Probably the latter.
💊 $NVO Novo Nordisk crashed 11% after announcing they expect sales to decline this year. The Danish pharma giant is getting steamrolled by fierce competition in the weight loss drug market. Turns out being the king of Ozempic doesn't guarantee you stay king forever.
🏰 $DIS Disney has a new CEO—again. It's the second time in six years they've announced a replacement for Bob Iger, which is starting to feel like a really expensive game of CEO musical chairs. Josh D'Amaro takes over March 18th. With the stock down 42% over five years, he's inheriting a fixer-upper. Good luck, Josh.
🤑 $WMT Walmart just crossed the $1 trillion market cap threshold thanks to e-commerce growth that's actually working. The stock is up over 24% in the past year.
CRYPTO
₿ Bitcoin's Rough Ride Continues
Bitcoin is still in the struggle zone. There's now an 85% chance it drops below $70,000 and a 51% chance it hits $55,000 in 2026. That's pretty scary if you bought near the top.
Our take: Everybody wanted Bitcoin at $120K. Now everybody's too scared to touch it at $70K. This is how crypto works every single cycle. Fear when it's cheap, greed when it's expensive.
Here's our perspective: We're long-term buyers. Gold is crushing Bitcoin right now, but the thesis hasn't changed—governments will keep printing money, stacking debt, and inflating away the problem. With only 21 million Bitcoin ever created, scarcity matters.
Full transparency: I bought my original position in 2022 at $35K and sold most of it at $102K in March 2025 to buy my first house (thank you, Bitcoin). I started stacking again in late 2025 and I’m currently down about 20%. Still holding cash to keep buying if it drops further.
The Munch Take: If you're trading Bitcoin, this volatility will eat you alive. If you're holding long-term and believe in the thesis, these drawdowns are part of the game. Want to know more about our Bitcoin strategy? Just reply to this email.
🚀 Pre-Market Fuel
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