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Claire Yubin Oh2h

Snap jumps after revealing plans to lay off ~16% of its workforce, new guidance sees Q1 revenue up ~12% year-on-year

Snap jumped as much as 10% in premarket trading on Wednesday after the social media company announced that it may cut about 1,000 roles, or roughly 16% of its full-time employees, in an attempt to improve profitability.

In an SEC filling that followed its Investor Update presentation on Wednesday, Snap also added that it will be closing more than 300 open roles. As a result of the job cuts and other measures, the company expects to save roughly $500 million in annualized expenses by the second half of 2026.

Through the latest moves, Snap is “pivoting towards profitable growth,” per CEO Even Spiegel, doubling down on its 60%+ gross margin target for 2026. It also joins a growing list of tech companies cutting jobs citing AI, with Spiegel adding that, “rapid advancements in artificial intelligence [will] enable our teams to reduce repetitive work, increase velocity, and better support our community, partners, and advertisers.”

In the same investor update event, Snap also updated parts of its Q1 financial outlook, including reduced guidance on its stock compensation and adjusted operating expenses. Snap now expects a revenue of approximately $1.529 billion, up 12% year-over-year and just above analyst expectations of $1.524 billion, compiled by Bloomberg. Snap expects adjusted EBITDA to come in at $233 million, again ahead of Wall Street's current forecasts ($184 million).

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Robinhood, Webull gain as SEC approves removal of day trading limit for small investors

Shares of Robinhood Markets and Webull are surging in premarket trading after the US Securities and Exchange Commission gave the green light to removing a rule that had impeded small traders from day trading.

The pattern day trading rule will no longer bar traders from making more than four day trades over a five-day period if their margin account has less than $25,000. The changes were initially proposed by the Financial Industry Regulatory Authority. Under the SEC order published Tuesday after the close of regular trading, all traders, regardless of account size, will just need to have enough in their margin account to cover their exposure.

(Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions.)

Allbirds, the quarter-zip of footwear, is leaving shoes behind to become an AI infrastructure company

Allbirds shares surged in premarket trading Wednesday.

Max Knoblauch23m

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Claire Yubin Oh4h

Broadcom jumps on expanded chip deal with Meta

Broadcom is ticking up 3% in premarket trading on Wednesday after yesterday’s announcement that it will expand its partnership with Meta to produce multi-generation custom chips to power Meta’s in-house AI accelerators through 2029.

As the “first phase of a sustained, multi-gigawatt rollout,” the announcement includes an initial commitment of over one gigawatt of computing capacity (or enough to power some 750,000 US homes). JPMorgan estimates that this first deployment implies a $12 billion to $15 billion revenue opportunity for Broadcom.

The partnership also builds on the two companies’ goal to “co-design and scale the hardware required to bring real-time generative AI features and personal superintelligence to billions of people globally” across Meta’s apps.

It’s the latest in a series of positive announcements from Broadcom, which spiked after issuing an optimistic AI sales outlook when delivering its quarterly results last month. The custom chip specialist followed that up with expanded deals with Anthropic and Google, its most important customer.

More broadly, custom chips have been having a moment as hyperscalers look to utilize tailor-made offerings in their data centers for both training and inference, with even Nvidia pouring in $2 billion to Broadcom’s rival Marvell Technology, proving its commitment to working towards other companies’ hardware integrating well on its platform.

“Overall, Broadcom continues to benefit from the accelerating shift toward custom chip designs by hyperscalers and original equipment manufacturers seeking greater performance, power efficiency, and cost differentiation tightly integrated with their software frameworks,” wrote JPMorgan analyst Harlan Sur following this announcement.

Meta is currently developing its AI silicons with a "portfolio approach,” by matching the right accelerator out of its multi-generation chips to each workload needed for its many apps and services. Broadcom’s XPU platform will allow Meta to design and scale hardwares in a way to best optimize Meta’s custom AI infrastructure. That platform-based strategy will also be backed by Broadcom’s high-bandwidth Ethernet networking technology for better efficiency and precision.

As part of the deal, Broadcom’s CEO Hock Tan will leave Meta’s board of directors to move to an advisory role on its custom silicon strategy, the companies shared in a joint statement.

Stocks rise as risk-on traders are hopeful for a peace deal

This past weekend’s failed talks did little to dampen optimism.

BKN-BULLS-JAZZ-JORDAN DUNK

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Robinhood jumps as crypto and retail favorites rip

Bitcoin and retail-sensitive stocks are rallying again, so Robinhood Markets is too.

Shares of the brokerage, which counts crypto trading as a key revenue stream, jumped as much as 10% on Tuesday as bitcoin breached $76,000 for the first time since early February. Strong gains for the crypto asset, which doesn’t really have fundamentals, the outfit that’s been synonymous with retail activity, and the stocks retail traders like the most are key signals that risk appetite is returning after the geopolitically induced drawdown.

Separately, Bernstein also sounded a bullish tone on prediction markets, another Robinhood business line, calling for volumes to hit as high as $1 trillion by 2030. Analysts reaffirmed their “outperform” rating and $130 price target on the shares, saying they offer “asymmetric upside potential.”

(Robinhood Markets Inc. is the parent company of Sherwood Media, an independently operated media company subject to certain legal and regulatory restrictions.)

The brokerage has been trading like three cryptos in a trench coat over the past three months, with the 63-session correlation between the stock and the iShares Bitcoin Trust lingering near its all-time high reached last month.

Robinhood and bitcoin’s all-time highs came in October, with both since suffering large sell-offs along with a host of other speculative assets.

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