markets

Hyunsoo Rim2/27/26

Block soars after announcing 40% workforce cut amid AI push

Block, the payments and fintech firm led by Twitter cofounder Jack Dorsey, is up almost 20% in premarket trading after announcing plans yesterday to cut 40% of its 10,000-person workforce.

Alongside the layoff announcement, Block reported $6.25 billion in Q4 revenue, slightly ahead of expectations, while gross profit for the quarter grew 24% year on year. The company also raised its full-year guidance for both gross profit and operating income.

In a post on X, Dorsey said the decision wasn’t made because the company is in “trouble,” instead framing the move as a structural shift. Indeed, Block has invested heavily in internal AI tools, including launching its own system called Goose in early 2025. In a letter to shareholders, Dorsey said “a significantly smaller team” using these tools “can do more and do it better.”

Most of the layoffs will occur in Q1 and will be “substantially” completed by the end of Q2, with expected restructuring charges of approximately $450 million to $500 million, according to an SEC filing.

Block is the latest company to tie job cuts to AI in Corporate America. Outplacement firm Challenger estimates roughly 55,000 US layoffs were attributed to the technology in 2025, almost 13x the level two years ago. Dorsey predicted that most companies “will reach the same conclusion and make similar structural changes” within the next year.

The company had more than tripled its headcount from the end of 2019 through 2022, with its number of employees rising from 3,845 to 12,428. When presented with this tidbit, Dorsey acknowledged on X that “yes we over-hired during covid because i incorrectly built 2 separate company structures.” Last year, Block spent roughly $68 million on an event for employees, which reportedly featured performances from T-Pain and Soulja Boy.

Despite the rally, Block remains more than 75% below its 2021 peak.

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General Fusion CEO Greg Twinney spoke with Sherwood News from the Nasdaq during the stock’s first day of trading.

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J. Edward Moreno7/7/26

SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

US job growth falls far short of estimates in June; unemployment rate unexpectedly dips to 4.2%

Job growth was 57,000. Analysts foresaw job growth of 113,000; prediction markets were more optimistic, looking for job growth above 125,000 but below 150,000.

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Meta surges on report it’s starting a cloud business to sell excess AI compute

The story of the hyperscalers in 2026 has largely been “the beatings will continue until the cash flow outlook improves;” this could help change the story for Meta. Or not.

Meta CEO Mark Zuckerberg visits U.S. Capitol for Senate meetings

markets

Paige Oamek6/30/26

Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

Revenue of $11.0 billion (estimate: $10.8 billion).
Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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