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Reddit gains after Q4 revenue and earnings exceed expectations, Q1 sales guidance tops estimates

Reddit reported fourth-quarter earnings Thursday.

2/5/26 4:12PM

Social media platform Reddit is jumping in premarket trading after reporting impressive fourth-quarter 2025 earnings after the bell Thursday. The company posted:

Earnings per share of $1.24, beating analysts’ expectations of $0.94. For the same quarter in 2024, Reddit had posted $0.36.
Revenue of $726 million, above the $666 million FactSet analyst consensus estimate and up 70% from last year.
121.4 million “daily active uniques,” up 19% year on year, over Wall Street’s expectation of 120 million.
Sales guidance for Q1 2026 of $595 million to $605 million, above analysts’ estimates of $577 million.

The stock has struggled lately, dropping about 35% year to date amid AI-related market weakness, but the bumper earnings, guidance, and the announcement of a $1 billion share buyback program have investors enthused.

“We’re entering the next era of Reddit — defined by sharper execution, global expansion, and product innovation that puts real people and conversations at the center,” Steve Huffman, Reddit cofounder and CEO, said in a statement. “Our focus is on turning Reddit’s authenticity into even more everyday utility.”

Investors will be looking for reassurance that Reddit can turn its ad platform and data licensing deals into a lasting business.

Rani Molla34m

Anthropic’s scramble for compute now includes rival xAI

Another day, another major partnership with an AI rival. This time, Anthropic signed a deal with SpaceX’s xAI to access compute from its Colossus 1 data center to help it improve capacity for its Claude Pro and Claude Max subscribers. Just yesterday, The Information reported that Anthropic planned to spend $200 billion on Google cloud services over the next five years. As Sherwood News’ Luke Kawa wrote:

“Anthropic has been a victim of its own success: the popularity of Claude Code and Cowork have revealed compute constraints and left users frustrated by caps. In response, the Claude developer has embarked upon a mad scramble for compute, striking or expanding deals with CoreWeave, Amazon, Google, and Broadcom.”

Now, it’s adding xAI to the list — even as the Elon Musk company builds a competing model.

In less terrestrial news, xAI said that as part of the agreement, Anthropic “expressed interest in partnering to develop multiple gigawatts of orbital AI compute capacity.”

xAI — Creators of Grok, the AI Chatbot

“Anthropic has been a victim of its own success: the popularity of Claude Code and Cowork have revealed compute constraints and left users frustrated by caps. In response, the Claude developer has embarked upon a mad scramble for compute, striking or expanding deals with CoreWeave, Amazon, Google, and Broadcom.”

Now, it’s adding xAI to the list — even as the Elon Musk company builds a competing model.

In less terrestrial news, xAI said that as part of the agreement, Anthropic “expressed interest in partnering to develop multiple gigawatts of orbital AI compute capacity.”

TEST TIME!

Meet your new interview partner: Claude

Chris Stokel-Walker

Rani Molla4h

SpaceX and Tesla’s Terafab could cost $119 billion — far more than expected

The initial phase of SpaceX and Tesla’s joint chip production effort, called Terafab, could cost $55 billion, with additional phases adding up to $119 billion in capital investment, Reuters reports, citing a notice posted on a Texas county website. Ultimately the goal of Terafab is to build enough in-house AI chip capacity to supply both companies.

The price tag is also higher than expected. Morgan Stanley had previously estimated Terafab would cost $34 billion to $45 billion.

Fortunately for Tesla, whose capex is expected to skyrocket this year, much of the early spending will sit on SpaceX’s balance sheet.

Here’s Musk on the last earnings call:

“SpaceX is going to take care of like the initial phase of the scaled up Terafab... Any kind of intercompany thing has to be approved by both the SpaceX and Tesla board of directors. It’s got to go through a conflict resolution. It’s going to have, unfortunately, a lot of complexity because we’ve got to make sure Tesla shareholders are served and SpaceX shareholders are served, and strike the right balance there.”

SpaceX files plan for $55 billion Terafab chip facility in Texas

The price tag is also higher than expected. Morgan Stanley had previously estimated Terafab would cost $34 billion to $45 billion.

Fortunately for Tesla, whose capex is expected to skyrocket this year, much of the early spending will sit on SpaceX’s balance sheet.

Here’s Musk on the last earnings call:

“SpaceX is going to take care of like the initial phase of the scaled up Terafab... Any kind of intercompany thing has to be approved by both the SpaceX and Tesla board of directors. It’s got to go through a conflict resolution. It’s going to have, unfortunately, a lot of complexity because we’ve got to make sure Tesla shareholders are served and SpaceX shareholders are served, and strike the right balance there.”

Rani Molla23h

Apple to let users choose between Anthropic, Google, and OpenAI models

Apple has been inching toward letting outside AI power its devices — and now it’s going further.

The company plans to let users choose between rival AI models across iOS 27, due this fall, expanding beyond ChatGPT to include players like Google and Anthropic, Bloomberg reports. The difference this time: deeper integration, with outside models powering features like Siri, writing tools, and image generation across the system.

Currently, Apple’s voice assistant, Siri, gives users the ability to query ChatGPT, but doing so requires a clunky extra step and usage has been poor. Meanwhile, Apple’s own AI tools have fallen short. (Apple has decided to use Google’s Gemini to power Siri in the future.) It’s not clear users care which AI is under the hood — as long as it works.

Apple to Let Users Choose Rival AI Models Across Its iOS 27 Features

Rani Molla5/5/26

FactSet and S&P Global fall after Anthropic releases financial services agents

FactSet and S&P Global are trading lower after Anthropic unveiled a set of AI agents meant to automate financial services work. Both stocks also sold off earlier this year after Anthropic’s Claude introduced financial research tools.

The 10 agents handle tasks like earnings analysis, market research, financial modeling, and auditing — tasks that mirror how analysts use FactSet and S&P Global’s data and research platforms.