AI Is Breaking Tech & Japan's $36B Check

Money Masters' Market Pulse Week 8

February 18, 2026

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Dear Money Master,

Anthropic just launched its second major AI model in under two weeks and this time, the ripple hit the entire software industry. Investors are asking a question that's making a lot of executives nervous: if AI can do the work, why are we still paying for all this software?

Meanwhile, Japan signed a $36 billion trade commitment putting real money into American oil, gas, and industrial projects. And Palo Alto Networks delivered solid earnings then watched shares drop because the future looked shakier than expected. Let's break it all down.

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📰 Your Daily Financial Digest - February 18th, 2026

💻 Technology:

Anthropic Just Launched Another AI Model — And It's Quietly Terrifying Software Stocks 🤖 — READ MORE

Anthropic released Claude Sonnet 4.6 on Tuesday, its second major model in under two weeks. It's now the default for all free and Pro users and arrives with stronger coding, research, and office task capabilities. Fast, capable, and cheap. And for a lot of software companies, it's a warning shot.

Here's the concept to understand: SaaS, or Software as a Service, is the business model behind companies like Salesforce, HubSpot, and ServiceNow. They charge businesses recurring monthly or annual fees to handle tasks like customer management, data analytics, and HR workflows. The entire model depends on one assumption: that companies need them.

That assumption is cracking. When an AI model can handle those same workflows out of the box, often at a fraction of the cost, businesses start asking why they're paying $50,000 a year for software they could replace. The iShares Tech Software ETF has already dropped over 20% this year as that fear spreads. Every new Anthropic launch turns up the volume on that question.

The winners will be software companies that can prove they have something AI can't replicate: deep integrations, proprietary data, or workflows too complex to automate. The ones without a clear answer? Investors are already voting with their feet.

🌍 Economics:

Japan Just Wrote a $36 Billion Check — Here's What the U.S. Japan Trade Deal Actually Means 🤝 — READ MORE

Japan has committed $36 billion in investments into U.S. energy and industrial projects, the opening move of a broader $550 billion pledge made as part of a landmark trade agreement. In exchange, the U.S. cut tariffs on most Japanese imports to 15%. The centerpiece is a $33 billion natural gas facility in Ohio, set to become the largest of its kind in history.

Here's the key concept: trade deals are negotiated exchanges between countries. One side offers access, lower tariffs and fewer barriers to selling goods, and the other brings capital or investment. Tariffs are taxes on imports. When they're high, foreign companies pay more to sell into your market. When they drop, trade flows more freely and deals get done.

The three projects cover a lot of ground. Beyond the Ohio gas facility, Japan is financing a $2.1 billion deepwater crude oil terminal off the Texas coast capable of generating $30 billion in annual U.S. exports, plus a $600 million synthetic diamond facility in Georgia. That last one isn't about jewelry. Diamond grit and powder are critical materials in industrial manufacturing and defense supply chains.

💹 Earnings:

Palo Alto Beat Earnings — Here's Why Acquisitions Are the Real Story 🔐 — READ MORE

Palo Alto Networks posted $2.59 billion in revenue and earnings of $1.03 per share, both beating Wall Street estimates. Revenue grew 15% year over year and net income nearly doubled. Strong results. So why did shares fall?

The answer is guidance, which is management's forecast for the next quarter. Palo Alto projected earnings of just 78 to 80 cents per share, well below the 92 cents analysts expected. As we've covered before: in earnings season, the future matters more than the past. When guidance disappoints, investors sell first and ask questions later.

But here's the more interesting story underneath. Palo Alto is on an acquisition spree. In under 90 days they closed a $25 billion purchase of CyberArk, a $3 billion deal for cloud platform Chronosphere, and now they're buying an Israeli AI security startup called Koi. That's over $28 billion deployed in a single quarter.

Why do companies acquire startups? Because it's faster than building. Instead of spending years developing new technology internally, Palo Alto is buying proven capabilities and plugging them into an existing customer base. Each deal adds new products, new engineers, and new recurring revenue that doesn't stop when a project ends. The goal is to become a one stop cybersecurity platform rather than just another vendor in the stack.

Wall Street Just Named the Most Crowded Trades of 2026

AI stocks. Metals. Crypto.

Surprise, surprise; gold crashed 16%. Silver plunged 34%. Bitcoin dropped to 1 year lows.

All supposedly "uncorrelated" assets moving in lockstep largely because of overleveraged margin.

JPM strategists warn that the same leverage is still a risk.

Those markets may be recovering now, but cascading liquidations could trigger quickly across several asset classes simultaneously.

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To your financial empowerment, The Money Masters Team

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DISCLAIMER: This information is for educational purposes only and does not constitute financial advice. The publisher does not accept any responsibility for any losses incurred as a result of actions taken based on the information provided. Always conduct your own research or consult with a financial advisor before making any investment decisions.