Happy Wednesday! One of Wall Street’s most trusted voices is questioning the math behind the AI boom. See his warning and his recent portfolio moves.

Michael Burry, the contrarian investor who famously shorted the housing market, is making waves again, this time with Molina Healthcare. With health insurers tanking under new regulatory pressures, Burry’s big bet has Wall Street’s full attention. 

Also, earnings season is in full swing and all eyes are on Microsoft (MSFT), Tesla (TSLA) and Meta (META) later today as they are the first from the ‘Magnificent 7’ to report earnings. Stay ahead and click the links to get the full earnings previews.

Plus, if you’re looking for a cutting-edge tech company fresh off its Nasdaq debut, check out today’s sponsor.

In Today's Edition

• MARKET RECAP

• MARKET HEATMAP

• FIVE ZINGERS

• MARKET HISTORY

Top Valuation Expert Says AI Market Needs 'Trillions In Revenue' To Justify Valuations After Cashing Out Of Its Biggest Chipmaker

One of the world’s most trusted valuation experts is throwing cold water on the AI boom — and he’s backing it up with real portfolio moves.

As billions pout into AI infrastructure, Aswath Damodaran, “the ‘Dean of Valuation,’ warns that investors may be underestimating just how much revenue the industry needs to justify today’s prices.

Virtuix Is Gunning For Growth With Cash In The Coffers After Nasdaq IPO

Virtuix Inc. (VTIX), the tech company bringing physical movement to AI-generated worlds, just went public on the Nasdaq and is now armed with fresh capital to grow Omni One, its at-home entertainment system.

Omni One is a 360-degree treadmill that lets you walk, run, crouch and jump in every direction. The system replicates your real-world movements directly in the game, providing a level of physical freedom that traditional controllers can’t give users. As a bonus, users get a workout. The company is also pioneering AI-driven 3D reconstruction techniques for applications in the industrial training and defense industries.

It's been resonating. For the six months ended September 30, revenue was up 138%. To learn more about Virtuix, click here.

This is a paid ad. Please see 17b disclosure here for more information.

Yesterday: U.S. indexes were mixed Tuesday, with the S&P 500 hitting a new intraday record as gains in technology stocks lifted broader markets ahead of earnings from major companies including Microsoft, Meta and Tesla. Meanwhile, the Dow was the only major laggard, falling nearly 1%, pressured by sharp declines in health insurance stocks after it was revealed that Medicare payment rates would remain flat, far below the 4%–6% rise Wall Street had expected. Investors also looked ahead to the Federal Reserve’s first policy decision of the year, with rates widely expected to remain unchanged. Attention remains focused on guidance around future easing, as futures markets continue to price in the possibility of two quarter-point rate cuts by the end of 2026.

On Our Radar: Analysts will be paying attention to today’s Federal Reserve’s interest-rate decision as well as Jerome Powell’s press conference for signals on the future path of monetary policy. On the earnings front, all eyes will be on Microsoft (MSFT), Tesla (TSLA), Meta (META) which will report after the market close today.

Shares of General Motors (GM), Corning (GLW) and Cloudflare (NET) were some of the biggest winners of the day. Meanwhile, health insurers such as UnitedHealth (UNH), Humana (HUM), and CVS Health (CVS) were some of the biggest laggards of the day, all falling roughly 20%. But those weren’t the only companies making big moves. Here’s a look at some of the biggest winners and losers on Tuesday.

Check out our interactive heatmap. Filter by market cap, or click on any box to explore specific sectors or assets in more detail.

Point Spread: Sportsbooks aren’t going down without a fight, even as prediction markets gain popularity, with traditional operators are finding ways to stay ahead in a rapidly shifting landscape.

Ark Alert: Cathie Wood is at it again as Ark Invest just poured millions into a Thiel-backed crypto exchange. Is this a genius tech bet, or a high-stakes gamble?

Earnings Pop: Despite missing Q4 estimates on the top and bottom lines, Texas Instruments shares surged after-hours. See what’s driving the surge.

Shutdown Blues: Another government shutdown looms and these 10 stocks suffered the brunt of it last time, including some very popular names. If the shutdown happens again, here’s which names to avoid.

Airline Turbulence: Earnings from American Airlines and JetBlue reveal a growing split in airline ETFs, with some carriers thriving on premium demand, while others are struggling. Click to see which airlines are soaring and which ones are hitting turbulence.

The Second Wave Of The AI Boom Is Starting Now

The easy money in Nvidia and Microsoft has already been made.

According to 30-year market veteran Tim Melvin, a radically different round of the AI boom is unfolding right now. He’s already used a simple two-move system to identify stocks like Tempus AI, Peabody, and Idaho Strategic before they surged. In this exclusive Benzinga session, he reveals two AI plays you can act on immediately and the exact framework he uses to find them.

On This Day In 1986…

The explosion of the Space Shuttle Challenger had an immediate impact on U.S. aerospace and defense stocks. Shares of these companies — most notably Morton Thiokol, which manufactured the faulty O-rings — fell sharply as investors assessed legal liability, contract risk, and the potential for program delays. Other major contractors such as Rockwell International and Lockheed also saw selling pressure amid uncertainty around future NASA spending. The event became a lasting example of how sudden valuations can change in the stock market.

QUOTE OF THE DAY

“I believe that investors need to remember the investment basics and not allow the ease and speed with which they can trade to lull them either into a false sense of security or encourage them to trade too quickly or too often.“

— Arthur Levitt (SEC Chairman)

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