New York, Feb 14, 2026, 12:58 EST — Market closed.
- Pinterest tumbled almost 17% on Friday, with the company projecting a weaker quarter as retailers affected by tariffs dialed back their ad budgets.
- XLC, the communication services ETF, ticked down with mega-cap stocks sliding ahead of the long weekend.
- Tuesday brings investors back, eyes on fresh media deal headlines, with Fed minutes looming midweek.
Pinterest’s sharp drop is now front and center for communication services stocks headed into the holiday-shortened U.S. week, as the image-sharing platform warned of slackening demand from major retail advertisers.
This setup takes on extra weight with Wall Street shuttered Monday for Presidents Day—no cash session until Tuesday. That’s one less trading day, so investors are left to chew over a crowded batch of macro data, swirling ad-market nerves, and fresh deal talk.
The S&P 500 managed to notch a modest advance Friday, but the Nasdaq lost ground. Investors showed lingering nerves over AI’s impact on profit margins and budgets, and Reuters pointed to communications services as a weak spot in its market roundup. Rosenblatt Securities managing director Michael James described the major tech names as “an anchor” on the market heading into the three-day holiday. Reuters
Consumer prices climbed 0.2% in January, putting the annual increase at 2.4%—just below forecasts, according to Reuters. “Better than expected,” was how Phil Orlando, chief market strategist at Federated Hermes, put it, though he cautioned that the Fed’s rate-cut timeline still hinges on what happens with jobs and the next round of data. Reuters
Price moves across the sector diverged. The Communication Services Select Sector SPDR Fund (XLC) wrapped up Friday at $114.58, off roughly 0.1%. Pinterest tumbled 16.9% to $15.42. Shares of Meta dropped 1.5%; Alphabet gave up 1.1%. On the upside, Disney jumped 3.0% and Netflix climbed 1.3%.
Pinterest got things started with a cautious note. The company’s outlook for first-quarter revenue came in under Wall Street’s targets, blaming softer ad spend from retailers squeezed by tariffs and a crowded fight for digital ad budgets. “Many of the largest retailers have been disproportionately impacted by tariffs and have been pulling back on advertising spend,” CFO Julia Donnelly said during the call with investors after the results. Reuters
Alphabet is drawing fresh scrutiny after its recent bond spree, with debt investors debating just how loose the “covenant-light” approach can get for these corporate giants. Covenants — the built-in protections for investors — have been noticeably thin, according to Julia Khandoshko, CEO at broker Mind Money: “What stands out is what’s missing,” she said. Anthony Canales from Covenant Review flagged the absence of typical change-in-control clauses in Alphabet’s bonds. Reuters
Media deals are stirring things up ahead of Tuesday’s open. Warner Bros. Discovery landed back in the spotlight after activist firm Sachem Head sharply boosted its holding, bumping its stake to almost 8 million shares, per a new regulatory filing. The company’s ongoing takeover saga now ropes in Netflix and Paramount Skydance.
Paramount Skydance is bulking up its roster ahead of a possible showdown. The latest addition: Rene Augustine, who served in the Trump administration, steps in as senior vice president of global public policy, effective Feb. 17, according to a memo reviewed by Reuters. Chief Legal Officer Makan Delrahim told staff, “In her role, Rene will be responsible for developing strategic policies that advance our business objectives.” While all this plays out, the company has upped its proposal—offering more cash, plus a breakup-fee guarantee—just as Netflix has thrown in a $27.75-per-share cash bid for Warner’s studio and streaming operations. Reuters
Comcast-owned Sky’s negotiations with ITV over a deal for its broadcast channels and the ITVX streaming service have hit a slowdown lately, according to three sources familiar with the talks, Reuters reports. One source called it a “lull.” The proposed deal, which has been touted as a bid to forge a UK streaming heavyweight capable of challenging Netflix, YouTube, Amazon Prime Video and Disney+, has lost momentum in recent weeks. Reuters
Still, the sector’s triggers aren’t all positive. If retail ad budgets fall further, the hit lands hardest on the smaller platforms. Any signs of wider credit spreads or stricter debt terms could bring back worries over how far mega-caps can stretch spending before returns take a hit. And that surge in deals? It’s got its own headaches—talks can drag out, regulators may circle.
Traders hit the ground running Tuesday after the Presidents Day break, eyeing fresh moves in media-bidding action and digesting what’s next for Pinterest. Next up: Wednesday brings the Federal Reserve’s minutes from its Jan. 27–28 meeting, scheduled for release at 2:00 p.m. ET—details that could jolt rate bets and, by extension, valuations for ad-powered and mega-cap communication players.
