Alphabet Inc (NASDAQ:GOOGL) stock is dragging Wall Street after the Big Tech giant reported a fourth-quarter revenue miss as its Google Cloud segment lagged. The company also revealed plans to invest $75 billion in capital expenditures this year to grow its artificial intelligence (AI) offerings, despite Chinese startup DeepSeek claiming it built an AI model at a substantially lower cost. 

GOOGL is down 8.3% to trade at $189.36 at last check, pacing for its biggest single-day percentage loss since October 2023 as it pulls back from yesterday's all-time high of $207.05. The equity is testing a floor at the $188 level that has been in place since late December, with added support at its 60-day moving average set to contain additional losses.

No fewer than 11 analysts have cut their price targets, the lowest from Wells Fargo to $184 from $190. Options traders lean overwhelmingly bullish, however, with GOOGL's 50-day call/put ratio of 3.60 back at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) standing higher than 97% of annual readings.

Drilling down to today's options activity, 287,000 calls and 152,000 puts have crossed the tape, which is five times the volume typically seen at this point. The most active contract is the weekly 2/7 195-strike call, where new positions are currently being bought to open.

Walt Disney Co. (NYSE:DIS) stock is trading at $113.79 at last check, after the company’s fiscal first-quarter earnings and revenue beat expectations, but was overshadowed by concerns over its streaming business. Disney reported adjusted earnings of $1.76 per share on revenue of $24.69 billion in the quarter just ended, but saw a 1% drop in Disney+ subscribers and warned of a “modest decline” subscribers for the second quarter.

The equity's options pits are exploding after the event. Walt Disney stock has already seen more than 57,000 calls and 19,000 puts exchange hands -- 6 times the average intraday volume. New positions are opening at the most popular contract, the weekly 2/7 120-strike call.

Heading into today, DIS was already struggling year-to-date and now sits just above breakeven for 2025. Long-term, shares remain up approximately 14% year-over-year, with support from the 20-day moving average helping to limit today's decline.

It's worth noting the Walt Disney stock has a history of exceeding volatility expectations, as evidenced by its Schaeffer's Volatility Scorecard (SVS) rating of 93 out of 100. In simpler terms, now may be a good time to weigh in on DIS' next move with options.

Uber Technologies Inc (NYSE:UBER) is preparing for its latest quarterly report, due out before the open tomorrow, January 5. Analysts appear optimistic ahead of the event, expecting earnings of 50 cents per share and year-over-year revenue growth of 18.2% to $11.74 billion. 

Though UBER is up 15.7% year to date, the $70 level has kept a lid on on gains since the start of January. The shares also touched the overhead 80-day moving during today's rise, so there is plenty of potential resistance for tomorrow's earnings volatility. At last glance, the stock was up 3.7% at $69.95. 

The equity's post-earnings history leans positive, with five of the last eight next-day moves ending in gains. This time around, the options pits are pricing in a 12.3% swing, regardless of direction, which is larger than the 6.6% move the stock has averaged over the last two years. 

Call traders are picking up UBER ahead of the event. So far, 181,000 calls have been exchanged, which is double the call volume typically seen at this point. The February 80 call is the most popular, followed by the weekly 2/7 70-strike call, with new positions opening at the latter. 

Calls have ruled the roost longer term as well. This is per the equity's 50-day put/call volume ratio of 3.15 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX). This ratio ranks in the 94th annual percentile, indicating a heavy preference for calls versus puts within the past 10 weeks.

PayPal Holdings Inc (NASDAQ:PYPL) stock is down 9.9% to trade at $80.61 at last check, brushing off a top- and bottom-line beat for the fourth quarter due to contracting margins. The fintech giant also announced an upbeat 2025 forecast amid Venmo growth.

PYPL is on track for its worst single-day percentage loss since in about a year, and earlier fell to $80,20, its lowest level since November. The shares still sport a 31.5% year-over-year lead, though, and long-term support from their 120-day moving average could contain today's losses.

The options pits are buzzing, with 130,000 calls and 48,000 puts exchanged so far today, which is eight times the intraday average volume. The most popular contract is the weekly 2/7 90-strike call, where new positions are being sold to open.

Now looks like an great time to weigh in with options. This is per the stock's Schaeffer's Volatility Scorecard (SVS) sits at a low 6 out of 100, making it a prime premium-selling candidate. 

Software stock Palantir Technologies Inc (NASDAQ:PLTR) is up 22.9% at $102.94 at last glance, earlier soaring to a fresh record high of $106.91, after the company's impressive fourth-quarter results and 2025 revenue forecast. Morgan Stanley upgraded the stock to "equal weight" from "underweight" after the event, while a flood of other analysts lifted their price targets. 

The artificial intelligence (AI) boom played a huge role in the results, and Palantir Technologies' Chief Technology Officer Shyam Sankar is making headlines as he discusses competition with China, calling it an "AI arms race." Over the last year, PLTR has jumped 533% as AI momentum carries on. 

Analysts, however, are mostly bearish on the equity, leaving plenty of room for upgrades going forward. Of the 18 brokerages in coverage, 16 carry a "hold" or worse rating. 

Unsurprisingly, options traders are blasting PLTR straight out of the gate. Within the first 15 minutes of trading, the stock has seen 6 times the options volume typically seen at this point. The weekly 2/7 110-strike call is the most popular, followed by the 105-strike call in the same series, with new positions being opened at both. 

This marks a shift in sentiment, as options traders were more bearish than usual over the last two weeks amid the stock's already-high valuation. This is per PLTR's 10-day put/call volume ratio at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), which ranks higher than 80% of readings from the past year.