Reddit anticipates higher first-quarter revenue, attributing this growth to its AI-powered ad platform. The company's AI tools, including an AI copywriter and image auto-crop, have significantly boosted ad sales, with its active advertiser base growing over 75% in the fourth quarter. Reddit also announced a $1 billion share repurchase plan, and it is launching AI-powered Max campaigns in beta to compete with platforms like Meta, automating ad adjustments and creative choices.
On February 6, 2026, the stock market saw a strong rally, with the Dow Jones Industrial Average closing above 50,000 for the first time. Nvidia led a rebound in AI hardware stocks, with its shares surging over 8%. However, major tech companies like Amazon, Alphabet (Google), and Microsoft announced substantial capital expenditure plans for 2026, primarily for AI investments. Amazon expects to spend $200 billion, Alphabet between $175 billion and $185 billion, and Microsoft reported $37.5 billion in capital expenditures for cloud and AI. These massive investments, totaling around $650 billion from Amazon, Alphabet, Meta, and Microsoft, caused some investor concern, leading to drops in Amazon and Alphabet's shares despite strong earnings.
Google is significantly increasing its AI investments, leveraging strong earnings from cloud services and advertising to compete with companies like OpenAI. Beyond the tech giants, Digital Realty offers a stable investment in AI data centers, having grown its core funds from operations by 10% from 2020 to 2024. In Africa, Dubai-based Maser Group announced a $1.6 billion investment in farmland and data centers across Nigeria, Ghana, and Kenya over the next two years. Meanwhile, Palantir Technologies shares dropped about 7% as investor interest in high-performing AI stocks cooled, and LegalZoom's CEO sees AI as a significant opportunity despite a stock decline and analyst concerns about disruption.
Key Takeaways
- Reddit expects higher Q1 revenue, driven by AI-powered ad tools that helped grow its active advertiser base over 75% in Q4.
- Reddit announced a $1 billion share repurchase program and is launching AI-powered Max campaigns to compete with Meta.
- Nvidia's shares surged over 8% on February 6, 2026, contributing to the Dow Jones Industrial Average closing above 50,000.
- Amazon plans $200 billion in capital expenditures for 2026, a nearly 60% increase, primarily for AI, causing its shares to fall.
- Alphabet (Google) expects 2026 capital expenditures between $175 billion and $185 billion, boosting AI investments to compete with OpenAI.
- Microsoft reported $37.5 billion in capital expenditures for cloud and AI, betting heavily on AI for future growth.
- Amazon, Alphabet, Meta, and Microsoft collectively plan to invest approximately $650 billion in AI tools in 2026.
- Digital Realty, a leading data center REIT, offers a stable investment in AI infrastructure, with core funds from operations growing 10% from 2020 to 2024.
- Dubai's Maser Group is investing $1.6 billion in African farmland and AI data centers in Nigeria, Ghana, and Kenya over two years.
- Palantir Technologies shares dropped about 7% as investor interest in high-performing AI stocks cooled, despite strong quarterly results.
Reddit shares jump as AI boosts ad sales and revenue
Reddit expects higher revenue in the first quarter, driven by strong ad sales fueled by artificial intelligence. The company's ad platform uses AI tools like an AI copywriter and image auto-crop to help brands. Its active advertiser base grew over 75% in the fourth quarter, and 11 of its top 15 ad categories saw revenue increase by 50% or more. Reddit also announced a $1 billion share repurchase plan, and its shares rose 4% after this news.
Reddit stock soars on strong AI ad sales and buyback plan
Reddit predicts its first-quarter revenue will be higher than Wall Street expected, thanks to AI-powered improvements in its ad platform. These enhancements help the social media platform attract more marketers, sending its shares up 10% in extended trading. The company also announced its first share repurchase program, planning to buy back up to $1 billion in shares. This move reflects Reddit's strong profitability and ability to generate cash.
Reddit predicts strong revenue growth with new AI ad tools
Reddit expects higher first-quarter revenue, thanks to its AI-powered ad platform attracting more marketers. The company's shares rose 4% after it also announced a $1 billion share buyback plan. Reddit's ad tools use AI to create ad copy and crop images, helping 11 of its top 15 ad categories grow revenue by over 50%. Reddit is also launching AI-powered Max campaigns in beta to compete with Meta, which automate ad adjustments and creative choices.
Reddit sees revenue jump as AI drives ad platform growth
Reddit expects its first-quarter revenue to be higher than Wall Street predictions, thanks to AI improvements in its ad platform. These AI tools, including an AI copywriter and image auto-crop, help attract more advertisers. The company's shares rose 10% after it also announced a new $1 billion share buyback program. Reddit is also introducing AI-powered Max campaigns in beta to compete with Meta, which automate ad campaigns by adjusting bids and selecting headlines.
Nvidia sparks market rally as Dow Jones hits 50,000
On February 6, the stock market saw a strong rally, with the Dow Jones Industrial Average closing above 50,000 for the first time ever. Nvidia led the rebound in AI hardware stocks, while crypto-exposed MicroStrategy surged about 25% as Bitcoin recovered. However, Amazon.com slid due to a hefty $200 billion capital expenditure plan for 2026, and Micron Technology fell on reduced HBM4 memory chip expectations. Investors showed renewed interest in AI-driven demand, despite an earlier tech sell-off.
Dow hits 50,000 as Nvidia and AI stocks rebound
On February 6, 2026, the Dow Jones Industrial Average reached a historic 50,000 points, driven by a strong rebound in AI chip stocks like Nvidia. Nvidia's shares rose over 8%, and MicroStrategy surged more than 26% as Bitcoin recovered above $70,000. However, Amazon.com and Alphabet saw their shares fall due to significant capital expenditure plans for 2026. This market rally showed renewed investor confidence in AI demand, despite some earlier tech stock losses.
Google boosts AI spending with strong cloud and ad profits
Google is greatly increasing its investments in artificial intelligence, using its strong earnings from cloud services and advertising. This strategic move helps Google compete with companies like OpenAI in the fast-growing AI market. The company plans to put a lot of money into AI research, development, and deployment. This increased investment will speed up how AI is used across all of Google's products, from search to autonomous systems, giving it a competitive edge.
Tech giants Microsoft and Alphabet make huge AI investments
On February 6, 2026, Microsoft and Alphabet announced strong earnings but saw their stock prices react weakly due to massive investments in AI. Microsoft reported adjusted earnings per share of $4.14 and sales of $81.3 billion, with $37.5 billion in capital expenditures for cloud and AI. Alphabet's Google Cloud revenue grew 48% to $17.7 billion, and CEO Sundar Pichai expects 2026 capital expenditures to be between $175 billion and $185 billion. Both companies are betting big on AI for future growth.
Amazon stock drops after huge AI spending announcement
Amazon's shares fell after the company announced plans to significantly increase its AI spending. Amazon expects to spend $200 billion in capital expenditures in 2026, which is nearly 60% more than last year and much higher than Wall Street predicted. The company also reported that its cloud-computing growth has been slower compared to its rivals. This substantial investment aims to boost its AI capabilities despite investor concerns about the cost.
LegalZoom CEO sees AI as opportunity despite stock drop
LegalZoom CEO Dan Schulman believes artificial intelligence is a big opportunity for the company, even though its shares fell 17% after its first-quarter earnings report. The stock has dropped 38% this year, and Wall Street analysts are worried AI could disrupt its business model. Schulman says LegalZoom is investing heavily in AI to automate tasks like document review and personalize legal advice for customers. He remains confident that leveraging AI will help turn the business around and deliver value to shareholders.
Nvidia stock jumps as tech giants plan huge AI spending
Nvidia's shares surged by 7.7%, adding over $300 billion to its market value, after major tech companies announced massive AI spending plans. Amazon.com Inc. led this news, revealing it will spend $200 billion on data centers, chips, and equipment this year. Together, Amazon, Alphabet Inc., Meta Platforms Inc., and Microsoft Corp. plan to invest about $650 billion in AI tools in 2026, which is a 60% increase from the previous year.
Digital Realty offers stable investment in AI data centers
While many investors focus on AI chip and software companies like Nvidia, data center Real Estate Investment Trusts offer a stable way to profit from the AI boom. Digital Realty, a leading data center REIT, operates over 300 data centers globally and serves many Fortune 500 companies. The company's core funds from operations grew 10% from 2020 to 2024, and it expects occupancy rates to rise in 2025. Digital Realty is considered a good investment for those seeking reliable dividends as demand for AI-ready data centers grows.
Dubai firm invests $1.6 billion in Africa AI and agriculture
On February 6, 2026, Dubai-based Maser Group announced a $1.6 billion investment in farmland and data centers across Africa. The company plans to spend this money in Nigeria, Ghana, and Kenya over the next two years to help with food security and digital infrastructure needs. Maser Group, led by founder Prateek Suri, has already invested $300 million and is seeking partnerships for data centers and other projects. This investment addresses Africa's rising demand for food and technology, as the continent imported over $83 billion in food in 2023.
Palantir stock drops as AI investor interest cools
Palantir Technologies Inc. shares dropped about 7% as investors pulled back from high-performing artificial intelligence stocks. This decline happened despite Palantir reporting strong quarterly results and a positive future outlook. The stock has now fallen over 35% from its November high, and fewer individual investors are holding it. However, Wall Street analysts still recommend a "Moderate Buy" and see potential for the shares to rebound, with an average target price around $193.
Sources
- Reddit forecasts revenue above estimates as AI fuels ad sales
- Reddit forecasts revenue above estimates as AI fuels ad sales
- Reddit forecasts revenue above estimates as AI fuels ad sales
- Reddit forecasts revenue above estimates as AI fuels ad sales
- Stock Market Today, Feb. 6: Nvidia Leads Rally After AI Hardware Rebounds
- Stock Market Today, Feb. 6: Nvidia Leads Rally After AI Hardware Rebounds
- Google Doubles AI Investment via Cloud, Ads Revenue
- Alphabet and Microsoft: Billion Dollar AI Bettors
- Amazon Shares Sink as Company Boosts AI Spending by Nearly 60%
- LegalZoom CEO Says AI Is an Opportunity as Claude Rocks the Stock
- Nvidia Shares Surge on Big Tech’s $650 Billion AI-Spending Plan
- Forget Tech Stocks: The Real Estate Play That's Cashing In on AI
- Dubai-Based Firm to Invest $1.6 Billion in Africa AI and Farms
- Palantir Stock Slides as AI Momentum Cools
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