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Luke Kawa

Nebius Group’s $3 billion deal with Meta takes some of the sting out of soft Q3 results

The knee-jerk move lower in Nebius after the company reported underwhelming Q3 results is not being fully offset by its concurrent announcement of a fresh $3 billion deal with Meta to deliver AI infrastructure over the next five years.

The numbers:

  • Revenue: $146.1 million (compared to analyst estimates of $156.5 million)

  • Adjusted net income: -$100.4 million (estimate: -$95.7 million)

In its earnings presentation, the neocloud highlighted that it sold out of all available capacity in Q3.

Management also significantly boosted guidance related to capacity, seeing contracted power at more than 2.5 gigawatts at the end of calendar year 2026, up from 1 gigawatt previously. Next year is poised to be huge for Nebius in terms of putting that power to good use, as management sees connected power (that is, energy that can be immediately activated upon GPU installation) rising from 220 megawatts at year-end 2025 to a range of 800 megawatts to 1 gigawatt by the end of 2026, or roughly quadrupling its active operations.

In a letter to shareholders, founder and CEO Arkady Volozh said that the firm is “currently in the process of securing additional sites” that would allow this contracted power guidance to be realized.

“The only real limitation on our revenue growth in 2025 has been the amount of capacity that we have been able to bring online,” Volozh wrote.

As the company works to resolve these constraints, “we believe that we can achieve annualized run-rate revenue of $7 billion to $9 billion by the end of 2026,” he added. There’s only one ARR estimate for Q4 2026 among analysts surveyed by Bloomberg, and that’s for $4 billion.

Management also announced an at-the-market equity program that will allow them to opportunistically raise capital by issuing up to 25 million shares.

Peer CoreWeave is slumping after posting its Q3 results after the close on Monday, in which management highlighted that supply constraints in the “powered shell” — that is, the supporting electrical infrastructure for the data center — are delaying its ramp, prompting a cut to full-year revenue guidance.

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Nate Becker

DraftKings drops after issuing downbeat 2026 sales, profit forecasts

DraftKings plunged after the sports betting company gave downbeat guidance for the current year.

Shares were down 15% in recent after-hours trading.

It forecast: 

  • Revenue between $6.5 billion and $6.9 billion, compared with analysts’ estimates of $7.29 billion, according to FactSet. 

  • Adjusted EBITDA of $700 million to $900 million, compared with estimates of $981 million.

For the fourth quarter, DraftKings posted: 

  • Revenue of $1.99 billion, in line with Wall Street’s $1.99 billion expectation 

  • Earnings per share of $0.25, compared with a consensus estimate of $0.09. 

DraftKings Reports Fourth Quarter Revenue Growth of 43% | DraftKings Inc.

DraftKings Reports Fourth Quarter Revenue Growth of 43% | DraftKings Inc.

It forecast: 

  • Revenue between $6.5 billion and $6.9 billion, compared with analysts’ estimates of $7.29 billion, according to FactSet. 

  • Adjusted EBITDA of $700 million to $900 million, compared with estimates of $981 million.

For the fourth quarter, DraftKings posted: 

  • Revenue of $1.99 billion, in line with Wall Street’s $1.99 billion expectation 

  • Earnings per share of $0.25, compared with a consensus estimate of $0.09. 

markets
Max Knoblauch

Rivian climbs after posting better-than-expected Q4 results; sees R2 SUV hitting the market in Q2

EV maker Rivian reported its fourth-quarter and full-year earnings results after markets closed on Thursday. Its shares climbed 13% in after-hours trading.

In the fourth quarter, which coincided with the end of federal EV tax credits in the US, Rivian booked $1.29 billion in revenue, down 26% year over year but above analysts’ expectations of $1.26 billion. The company posted an adjusted loss of $0.54 per share in Q4, compared to the expected loss of $0.68 per share.

Rivian forecast full-year adjusted losses in the range of $1.8 billion to $2.1 billion, compared to the $1.75 billion loss expected by Wall Street.

2026 is set to be a big year for the company, with its upcoming $45,000 R2 SUV planned to begin deliveries in the second quarter. Rivian issued full-year delivery guidance of between 62,000 and 67,000 vehicles, compared to Wall Street’s expectations of 65,700. Analysts polled by FactSet expect 14,700 of those 2026 deliveries to be R2s. Last year, Rivian delivered 42,247 vehicles.

“It’s incredibly exciting to see the early strong reviews of the R2 pre-production builds, and we can’t wait to get them to our customers next quarter,” CEO RJ Scaringe said.

markets
Matt Phillips

Arista Networks soars as it beats on Q4 EPS and revenue, gives upbeat sales guidance

Arista Networks, which sells equipment and software used to run and monitor data center networks, reported better-than-expected fourth-quarter earnings and sales after the close of trading on Thursday.

Arista shares were up about 9% in the after-hours session.

Here’s what the switch and router maker reported:

  • Adjusted earnings per share of $0.82 vs. Wall Street expectations for $0.76, according to FactSet.

  • Sales of $2.49 billion vs. an expected $2.38 billion, per FactSet data.

  • A non-GAAP Q4 gross margin, a measure of how profitable a company’s core products are to produce, of 63.4% vs. previous guidance of 62% to 63%.

  • Guidance for Q1 sales of approximately $2.6 billion vs. the $2.46 billion expected on Wall Street.

  • Guidance for a Q1 non-GAAP gross margin of between 62% and 63% vs. the 63% FactSet forecast.

markets
Matt Phillips

Coinbase posts record stablecoin revenue but falls short of expectations for Q4 sales

Shares of cryptocurrency exchange Coinbase jumped after-hours on Thursday after the company reported record stablecoin revenue, despite Q4 revenue numbers that missed Wall Street expectations. 

The stock was up 3.1% in recent trading.

  • Revenue came in at $1.78 billion vs. the $1.81 billion consensus analyst expectation, per FactSet.

  • Transaction revenue was $982.7 million vs. a $998 million forecast.

  • The company reported adjusted earnings per share of $0.66, compared with $3.37 a year earlier.

  • Stablecoin revenue hit a record $364.1 million, up 61% from the same quarter the previous year.

Earlier Thursday, Coinbase seemingly suffered an outage, saying it was “aware that customers may be unable to buy, sell, transfer on Coinbase.com at this time,” but noting that “your funds are safe.” The company said the issue was resolved just over an hour later.

Coinbase shares — which were added to the S&P 500 last May — have been crushed by the downturn in crypto this year. Through Wednesday’s close, the stock was down by more than 30% in 2026. And that was before the stock caught a double downgrade on Thursday before the report.

Luke Kawa
13h
Applied Materials jumps after posting better-than-expected Q1 results, strong Q2 outlook

The semicap company just reported its Q1 results.

Applied Materials campus in Silicon Valley

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