On a notable trading day, markets appear poised for a higher open, with the S&P 500 gaining momentum thanks to robust post-earnings performance from several key tech stocks. Particularly, shares of Palantir surged more than 11%, following a fourth-quarter earnings report that exceeded expectations, fueled by rising investments in AI data tools from both businesses and government sectors. With high growth and margins, Palantir is positioning itself as a leader comparable to established names like Salesforce and ServiceNow, despite concerns around potential AI disruptions affecting those other stocks.
Meanwhile, Teradyne’s shares rallied over 20% after the company delivered better-than-anticipated fourth-quarter results, with management’s guidance for the fiscal Q1 of 2026 shattering estimates, showcasing a strong demand in their semiconductor and robotics testing solutions.
In the data storage sector, Sandisk’s stock continued its upward trajectory, climbing an additional 4% after reaching record highs for four consecutive sessions. The company’s robust performance this year—up more than 180%—has been attributed to the growing AI infrastructure trend. However, JPMorgan has suspended its rating on Sandisk due to policy constraints.
On the downside, shares of Eaton fell by more than 4% despite the power management company reporting a mixed fourth-quarter performance. Although Eaton surpassed earnings-per-share estimates, it missed revenue targets, and its guidance for the first quarter and full year of 2026 fell short of expectations.
In significant corporate news, Elon Musk’s SpaceX is set to acquire his artificial intelligence startup xAI in a historic deal that reportedly values SpaceX at $1 trillion and xAI at $250 billion. This transaction marks the largest merger and acquisition deal on record, merging the aerospace venture with the innovative chatbot developer.
PayPal also made headlines, announcing a major leadership change following disappointing earnings results. CEO Alex Chriss will be replaced by HP CEO Enrique Lores, with Jamie Miller stepping in as interim CEO until Lores officially starts next month. In reaction to these developments, PayPal’s shares plummeted by 15%.
In another executive transition, Disney reported that Josh D’Amaro, currently chairman of Disney Experiences, will take the helm as CEO, succeeding Bob Iger starting March 18. This marks the second time in six years that Disney has appointed a successor to Iger.
Positive developments were seen for Alphabet as Mizuho raised its price target from $365 to $400, maintaining a buy rating. Analysts remain optimistic about the fundamentals for large-cap advertisers, while Alphabet’s Waymo announced a substantial raise of $16 billion at a valuation of $126 billion, with Alphabet itself contributing $13 billion to the financing round. The tech giant is set to release its earnings tomorrow evening.
Additionally, Mizuho raised its price target for GE Vernova to $714 from $660, citing growth in services and expansions in gas turbine capacity. This performance is reflected in the stock, which was reported to be up by 1%.
Market watchers have a busy day ahead as earnings reports and leadership changes are likely to influence trading decisions and investor sentiment in the days to come.
