Software stocks saw a 25% drop in value due to AI updates from Anthropic and Google, raising concerns about long-term value. Aggressive valuations were based on hopes of rate cuts, but Fed Chair Powell’s remarks dashed those hopes. Qualcomm and Arm’s weak guidance due to memory chip shortages led to penalties for both stocks.

Despite shocking capex levels, Alphabet’s fundamentals remain strong. YouTube podcast viewership surged 75%, while Gemini Enterprise gained 8 million paid seats and 750 million monthly active users. Analysts predict Google’s search activity and AI use cases will drive higher monetization.

E.l.f. Beauty’s stock fell 6% despite raising outlooks and acquiring Hailey Bieber’s cosmetics brand. CEO Tarang Amin highlighted strong demand trends for Rhode and new shelf space wins at major retailers. The cosmetics industry is volatile, but some believe the Street may be underestimating e.l.f.’s potential.

Read more at Yahoo Finance: Why I am still taking these tech stocks to task