Wall Street’s Favorite Trades Collapse After Market Selloff

🎮 Roblox stock rallying on blowout Q4 earnings and strong guidance

Roblox stock price jumped 12.27% to $68 in pre-market trading after the gaming platform delivered fourth-quarter results that significantly exceeded Wall Street expectations and issued optimistic guidance for fiscal year 2026.

The rally marks a sharp reversal from recent weakness that had seen the stock decline 18% over the previous week from levels around $75, and 54.85% over the past six months.

The shift in sentiment this morning will be more than welcome for Roblox bulls. AskTraders reports.


💻 S&P 500, Nasdaq poised to deepen tech rout as Amazon's earnings flop

US stock futures fell early Friday as Amazon’s post-earnings slide weighed heavily on technology sentiment and investors braced for further damage after a bruising session on Wall Street.

S&P 500 futures dropped 0.4%, while Nasdaq 100 futures slid roughly 0.5%.

Contracts tied to the Dow Jones Industrial Average edged down 0.2%.

Stocks are set to extend the recent sharp sell-off, once again led by technology names.

The S&P 500 and the Nasdaq Composite have now slipped into negative territory for 2026. Yahoo Finance reports.


💬 Reddit stock rallying after hours on strong Q4 beat, $1 billion buyback

Reddit’s stock price jumped 7.69% in overnight trading, following a strong fourth-quarter earnings beat and the announcement of a $1 billion share repurchase program, offering relief to shareholders after a year-to-date decline of 37.55%.

The social media platform reported fourth-quarter revenue of $725.6 million, a 69.7% year-over-year increase that surpassed analyst expectations of $667.5 million.

GAAP earnings per share came in at $1.24, beating consensus estimates of $0.93 by 33.1%.

The stock closed regular trading at $151.08, down 1.05%, before rallying to $167.88 in after-hours trading as markets digested the better-than-expected results. AskTraders reports.


📦 Amazon stock down big on earnings as capex plans overshadow revenue growth

Amazon’s stock tumbled 11.2% in extended trading following the release of fourth-quarter earnings, pushing the stock below the psychologically significant $200 level to $197.75.

The sharp decline erased recent gains and brought the e-commerce and cloud computing giant to price levels not seen since the tariff-induced market pullback in May 2025.

The after-hours collapse came despite Amazon delivering solid top-line results, with fourth-quarter revenue climbing 14% year over year to $213.4 billion, marginally ahead of the $211.4 billion consensus estimate.

However, earnings per share of $1.95 fell short of analyst expectations of $1.97, while net income reached $21.2 billion compared with $20 billion in the prior-year period. AskTraders reports.


🧪 Why IonQ stock is falling today

Shares of quantum computing company IonQ fell 8.1% in the afternoon session after a short-seller report from Wolfpack Research alleged the company lost critical funding tied to Pentagon contracts.

The report claimed those contracts accounted for up to 86% of IonQ’s revenue from 2022 to 2024 and created what it described as a $54.6 million gap in the company’s 2025 bookings.

The short seller also suggested the situation contributed to the chief executive’s resignation and significant insider stock sales.

According to the report, IonQ later acquired several non-quantum computing companies in an effort to offset the lost funding, which the report said further worsened the company’s operating cash flow. Yahoo Finance reports.

*Estimate and Actual numbers represent Earnings Per Share in US Dollars


FUJHY: Subaru
Q3 2026
Before Market Open
Estimate: N/A
Actual: -0.030

VRTS: Virtus Inv
Q4 2025
Before Market Open
Estimate: 6.460
Actual: N/A

PAA: Plains All American
Q4 2025
Before Market Open
Estimate: 0.470
Actual: N/A

Time (ET) / Report / Period

10:00 AM - Consumer sentiment (prelim) - Feb.
12:00 AM - Fed Vice Chair Philip Jefferson speaks - N/A
3:00 PM - Consumer credit - Dec.

“Leverage is the fastest way to lose money in the markets.”

– Nithin Kamath

Sourced in: Nithin Kamath interview – CNBC TV18.

TradeZero America, Inc., a United States broker dealer, registered with the Securities and Exchange Commission (SEC) and member of the Financial Industry Regulatory Authority (FINRA) and the Securities Investor Protection Corporation (SIPC); TradeZero, Inc., a Bahamian broker dealer, registered with the Securities Commission of the Bahamas ; TradeZero Canada Securities ULC, a Canadian broker dealer, member firm of Canadian Investment Regulatory Organization (CIRO) and member of the Canadian Investor Protection Fund (CIPF); and TradeZero Europe B.V., a Dutch broker dealer, authorized and regulated by the Dutch Authority for the Financial Markets (AFM) (collectively, the “TradeZero Broker Dealers”).

TradeZero Broker Dealers offer self-directed electronic securities trading to their customers. TradeZero Broker Dealers do not provide financial or trading advice and do not make investment recommendations to their customers. This communication does not constitute an offer to sell or a solicitation to buy any security or instrument which it may reference. There is a risk of loss in online trading of securities including equities and options. Trading on margin is for experienced investors whereby the loss can be greater than your initial investment. Likewise, short selling as a securities trading strategy is extremely risky and can lead to potentially unlimited losses. Options trading is not suitable for all investors as it can involve risk that may expose investors to significant losses. Please read the Characteristics and Risks of Standardized Options, also known as the Options Disclosure Document (ODD) at OCC.

If you have any specific questions about TradeZero's brokerage services, please reach out to the TradeZero Broker Dealer servicing your jurisdiction.