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Federal Reserve Holds Rates Steady as Powell Cites Economic Stabilization and Inflation Progress
TLDR:
Federal Reserve maintains current federal funds rate target range amid solid economic expansion trends
Chair Powell confirms labor market shows stabilization signs after period of previous volatility
Inflation has eased substantially from mid-2022 peaks but remains somewhat elevated above target
FOMC adopts meeting-by-meeting approach with no preset course for future monetary policy decisions
The Federal Reserve System continues its oversight of monetary policy through its three-tiered structure while maintaining the federal funds rate target range.
Chair Powell announced the decision during a recent press conference, citing solid economic expansion and labor market stabilization. Inflation has declined from mid-2022 peaks but remains above target levels.
The central bank emphasizes its commitment to data-dependent policy decisions on a meeting-by-meeting basis.
Structural Framework Guides Policy Implementation
The Federal Reserve operates through three distinct entities that collaborate on monetary policy and financial oversight. The Board of Governors serves as the federal agency directing the entire system’s operations.
Seven members lead this board after presidential nomination and Senate confirmation. The Board sets overarching policy direction for the nation’s central banking system.
Twelve Federal Reserve Banks function independently across their designated districts throughout the country. These regional institutions monitor local economic conditions and supervise financial institutions within their territories.
The Banks enforce consumer protection regulations and provide essential liquidity to commercial banks. They also manage critical components of the national payment infrastructure.
The Reserve Banks serve dual roles as the government’s banking institution and service providers to depository institutions.
This structure allows for regional economic insights to inform national policy decisions. Each district bank contributes unique perspectives on local business conditions and employment trends. The decentralized approach ensures comprehensive coverage of diverse economic landscapes.
The Federal Open Market Committee represents the policy-making arm of the Federal Reserve System. FOMC membership includes Board governors and Reserve Bank representatives who convene regularly.
The Committee formulates monetary policy aimed at achieving maximum employment and price stability. Interest rate adjustments and credit condition modifications serve as primary tools for economic influence.
Economic Outlook Shapes Policy Direction
Chair Powell addressed current conditions during the press conference, noting economic activity has been expanding at a solid pace.
The labor market demonstrates signs of reaching equilibrium after previous volatility. Powell observed that the labor market shows signs of stabilization across multiple indicators. These developments inform the Fed’s assessment of appropriate policy measures.
Powell acknowledged that inflation has eased substantially from its highs in mid-2022 during his remarks. Consumer price increases have moderated but remain somewhat elevated above target levels.
The Committee maintains focus on bringing inflation sustainably back to target levels. Powell stated the goal remains to bring inflation sustainably to the 2 percent objective.
The Chair stressed that monetary policy is not on a preset course going forward. The FOMC evaluates incoming data before each scheduled meeting to determine appropriate actions.
Powell explained decisions will be made on a meeting basis rather than following predetermined timelines. The central bank prioritizes supporting maximum employment while pursuing price stability goals.
Powell also emphasized the importance of keeping longer-term inflation expectations well-anchored throughout the adjustment period.
The Federal Reserve Education program extends beyond policy implementation to public engagement. Educational resources serve students from kindergarten through college with economics and personal finance materials.
These initiatives aim to empower consumers to make informed financial decisions about their economic futures.
The post Federal Reserve Holds Rates Steady as Powell Cites Economic Stabilization and Inflation Progress appeared first on Blockonomi.
Federal Reserve maintains current federal funds rate target range amid solid economic expansion trends
Chair Powell confirms labor market shows stabilization signs after period of previous volatility
Inflation has eased substantially from mid-2022 peaks but remains somewhat elevated above target
FOMC adopts meeting-by-meeting approach with no preset course for future monetary policy decisions
The Federal Reserve System continues its oversight of monetary policy through its three-tiered structure while maintaining the federal funds rate target range.
Chair Powell announced the decision during a recent press conference, citing solid economic expansion and labor market stabilization. Inflation has declined from mid-2022 peaks but remains above target levels.
The central bank emphasizes its commitment to data-dependent policy decisions on a meeting-by-meeting basis.
Structural Framework Guides Policy Implementation
The Federal Reserve operates through three distinct entities that collaborate on monetary policy and financial oversight. The Board of Governors serves as the federal agency directing the entire system’s operations.
Seven members lead this board after presidential nomination and Senate confirmation. The Board sets overarching policy direction for the nation’s central banking system.
Twelve Federal Reserve Banks function independently across their designated districts throughout the country. These regional institutions monitor local economic conditions and supervise financial institutions within their territories.
The Banks enforce consumer protection regulations and provide essential liquidity to commercial banks. They also manage critical components of the national payment infrastructure.
The Reserve Banks serve dual roles as the government’s banking institution and service providers to depository institutions.
This structure allows for regional economic insights to inform national policy decisions. Each district bank contributes unique perspectives on local business conditions and employment trends. The decentralized approach ensures comprehensive coverage of diverse economic landscapes.
The Federal Open Market Committee represents the policy-making arm of the Federal Reserve System. FOMC membership includes Board governors and Reserve Bank representatives who convene regularly.
The Committee formulates monetary policy aimed at achieving maximum employment and price stability. Interest rate adjustments and credit condition modifications serve as primary tools for economic influence.
Economic Outlook Shapes Policy Direction
Chair Powell addressed current conditions during the press conference, noting economic activity has been expanding at a solid pace.
The labor market demonstrates signs of reaching equilibrium after previous volatility. Powell observed that the labor market shows signs of stabilization across multiple indicators. These developments inform the Fed’s assessment of appropriate policy measures.
Powell acknowledged that inflation has eased substantially from its highs in mid-2022 during his remarks. Consumer price increases have moderated but remain somewhat elevated above target levels.
The Committee maintains focus on bringing inflation sustainably back to target levels. Powell stated the goal remains to bring inflation sustainably to the 2 percent objective.
The Chair stressed that monetary policy is not on a preset course going forward. The FOMC evaluates incoming data before each scheduled meeting to determine appropriate actions.
Powell explained decisions will be made on a meeting basis rather than following predetermined timelines. The central bank prioritizes supporting maximum employment while pursuing price stability goals.
Powell also emphasized the importance of keeping longer-term inflation expectations well-anchored throughout the adjustment period.
The Federal Reserve Education program extends beyond policy implementation to public engagement. Educational resources serve students from kindergarten through college with economics and personal finance materials.
These initiatives aim to empower consumers to make informed financial decisions about their economic futures.
The post Federal Reserve Holds Rates Steady as Powell Cites Economic Stabilization and Inflation Progress appeared first on Blockonomi.
Ethereum Trapped in Macro Equilibrium as Analysts Map Critical Breakout Levels
TLDR:
Ethereum trades in forced equilibrium within defined boxes, selling at highs and buying at lows without structural direction.
The consolidation creates messy low-timeframe conditions with false breakouts that punish impulsive traders significantly.
Critical support holds around $2,930 with statistical data showing low probability of breaking the weekly low currently.
Upside targets sit near $3,070 liquidity zone, requiring market structure break confirmation on multiple timeframes first.
Ethereum continues trading within defined price ranges without establishing structural direction, according to recent market analysis.
The asset remains confined between key support and resistance levels that have held for months. Technical analysts observe this pattern as a forced equilibrium rather than genuine market strength or weakness, creating challenges for short-term traders seeking clear trends.
Extended Consolidation Creates Trading Complexity
The prolonged consolidation phase has transformed ETH into a time-consuming market rather than a trending one. Analyst EliZ notes the asset consistently sells at upper boundaries and attracts buying pressure at lower zones.
This repetitive behavior generates a structure where liquidity simply rotates without producing meaningful directional momentum. The pattern has persisted across multiple timeframes, from daily charts extending to yearly perspectives.
$ETH macro
The key here is to look up and stop getting caught up in the daily noise.
If you look at these charts from a macro perspective, what emerges is not real strength or weakness, but an enormous forced equilibrium. The price continues to move within well-defined boxes,… pic.twitter.com/lS4kwDfEND
— EliZ (@eliz883) January 29, 2026
Market participants frequently misread short-term movements as potential regime changes. However, the broader context reveals these fluctuations as noise within established boundaries.
Without sustained acceptance beyond critical technical areas, each bounce or decline merely represents another cycle within the existing framework.
The environment particularly punishes traders who force positions based on emotional reactions to isolated price movements or social media commentary.
Lower timeframe analysis reveals messy, non-fluid action filled with false breakouts and immediate reversals. These conditions favor patient traders who reduce position sizes and wait for high-probability setups.
The current structure rewards discipline over frequency, as most intraday movements fail to produce follow-through.
Until ETH demonstrates a clean breakout above resistance or breakdown below support, the market maintains its neutral stance.
Technical setups require clear triggers rather than anticipatory positioning. The consolidation makes premature entries costly, as price action repeatedly invalidates both bullish and bearish narratives.
Traders operating on gut reactions or single-candle interpretations typically experience the worst outcomes in these conditions.
The macro perspective demands patience until the market provides genuine signals of directional commitment.
Support Levels Hold Despite Testing Pressure
Lennaert Snyder identifies ETH maintaining its uptrend with crucial support around the $2,930 level. Statistical analysis suggests low probability of breaking the weekly low, shifting focus toward long opportunities.
The preferred scenario involves sweeping the $2,938 low before establishing a market structure break that signals upside continuation. Target liquidity sits near $3,070, representing the next meaningful resistance zone.
$ETH is maintaining the uptrend.
Just like BTC, it's now holding an important support box around ~$2,930.
Statistics show a low probability of taking out the weekly low, therefore I'm focused on longs here.
The trigger I'd like to see is that we sweep the current ~$2,938 low,… pic.twitter.com/kfwqsbdAFR
— Lennaert Snyder (@LennaertSnyder) January 29, 2026
The depth of potential downside sweeps remains uncertain, requiring adaptive position management. If price develops a new swing high during deeper retests, the market structure break level adjusts accordingly.
This flexibility accounts for manipulation tactics that often precede genuine directional moves. The support box may experience additional testing or brief violations before providing the technical confirmation traders seek.
Multiple timeframe analysis suggests watching M15, M30, or H1 charts for the market structure break signal. This approach allows traders to catch moves after confirmation rather than during ambiguous price action.
Risk management involves taking partial profits at intermediate levels while maintaining core positions toward the $3,070 target.
The strategy acknowledges current volatility while positioning for potential upside resolution of the consolidation pattern.
The post Ethereum Trapped in Macro Equilibrium as Analysts Map Critical Breakout Levels appeared first on Blockonomi.
Ethereum trades in forced equilibrium within defined boxes, selling at highs and buying at lows without structural direction.
The consolidation creates messy low-timeframe conditions with false breakouts that punish impulsive traders significantly.
Critical support holds around $2,930 with statistical data showing low probability of breaking the weekly low currently.
Upside targets sit near $3,070 liquidity zone, requiring market structure break confirmation on multiple timeframes first.
Ethereum continues trading within defined price ranges without establishing structural direction, according to recent market analysis.
The asset remains confined between key support and resistance levels that have held for months. Technical analysts observe this pattern as a forced equilibrium rather than genuine market strength or weakness, creating challenges for short-term traders seeking clear trends.
Extended Consolidation Creates Trading Complexity
The prolonged consolidation phase has transformed ETH into a time-consuming market rather than a trending one. Analyst EliZ notes the asset consistently sells at upper boundaries and attracts buying pressure at lower zones.
This repetitive behavior generates a structure where liquidity simply rotates without producing meaningful directional momentum. The pattern has persisted across multiple timeframes, from daily charts extending to yearly perspectives.
$ETH macro
The key here is to look up and stop getting caught up in the daily noise.
If you look at these charts from a macro perspective, what emerges is not real strength or weakness, but an enormous forced equilibrium. The price continues to move within well-defined boxes,… pic.twitter.com/lS4kwDfEND
— EliZ (@eliz883) January 29, 2026
Market participants frequently misread short-term movements as potential regime changes. However, the broader context reveals these fluctuations as noise within established boundaries.
Without sustained acceptance beyond critical technical areas, each bounce or decline merely represents another cycle within the existing framework.
The environment particularly punishes traders who force positions based on emotional reactions to isolated price movements or social media commentary.
Lower timeframe analysis reveals messy, non-fluid action filled with false breakouts and immediate reversals. These conditions favor patient traders who reduce position sizes and wait for high-probability setups.
The current structure rewards discipline over frequency, as most intraday movements fail to produce follow-through.
Until ETH demonstrates a clean breakout above resistance or breakdown below support, the market maintains its neutral stance.
Technical setups require clear triggers rather than anticipatory positioning. The consolidation makes premature entries costly, as price action repeatedly invalidates both bullish and bearish narratives.
Traders operating on gut reactions or single-candle interpretations typically experience the worst outcomes in these conditions.
The macro perspective demands patience until the market provides genuine signals of directional commitment.
Support Levels Hold Despite Testing Pressure
Lennaert Snyder identifies ETH maintaining its uptrend with crucial support around the $2,930 level. Statistical analysis suggests low probability of breaking the weekly low, shifting focus toward long opportunities.
The preferred scenario involves sweeping the $2,938 low before establishing a market structure break that signals upside continuation. Target liquidity sits near $3,070, representing the next meaningful resistance zone.
$ETH is maintaining the uptrend.
Just like BTC, it's now holding an important support box around ~$2,930.
Statistics show a low probability of taking out the weekly low, therefore I'm focused on longs here.
The trigger I'd like to see is that we sweep the current ~$2,938 low,… pic.twitter.com/kfwqsbdAFR
— Lennaert Snyder (@LennaertSnyder) January 29, 2026
The depth of potential downside sweeps remains uncertain, requiring adaptive position management. If price develops a new swing high during deeper retests, the market structure break level adjusts accordingly.
This flexibility accounts for manipulation tactics that often precede genuine directional moves. The support box may experience additional testing or brief violations before providing the technical confirmation traders seek.
Multiple timeframe analysis suggests watching M15, M30, or H1 charts for the market structure break signal. This approach allows traders to catch moves after confirmation rather than during ambiguous price action.
Risk management involves taking partial profits at intermediate levels while maintaining core positions toward the $3,070 target.
The strategy acknowledges current volatility while positioning for potential upside resolution of the consolidation pattern.
The post Ethereum Trapped in Macro Equilibrium as Analysts Map Critical Breakout Levels appeared first on Blockonomi.
Crypto’s Four-Year Cycle Ends: Three Scenarios That Could Define 2026 Markets
TLDR:
Traditional four-year crypto cycles no longer dictate market performance as liquidity flows replace timing
Altcoin rallies shortened from 60 days in 2024 to just 20 days in 2025 amid extreme concentration
ETFs and digital asset trusts created walled gardens that trapped capital in major cryptocurrencies
Three catalysts could broaden 2026 markets: wider ETF mandates, major rallies, or retail rotation
The cryptocurrency market’s traditional four-year cycle appears to be ending, according to recent analysis. The year 2025 failed to produce the expected rally that previous cycles delivered.
Instead, market performance now depends on liquidity flows and investor attention rather than predictable timing patterns.
This shift marks a potential transition point for digital assets, moving from pure speculation toward becoming a more established asset class.
Capital Flow Patterns Reveal New Market Structure
The flow of capital within crypto markets has fundamentally changed over the past year. Previously, gains from Bitcoin would naturally cascade through the ecosystem.
Profits moved from Bitcoin to Ethereum, then filtered down to blue-chip tokens before reaching smaller altcoins. This pattern created broad-based rallies that lifted most assets during bull markets.
Data from Wintermute’s over-the-counter trading desk reveals this transmission mechanism weakened significantly throughout 2025. Exchange-traded funds and digital asset trusts have created what analysts call “walled gardens.”
These investment vehicles generate consistent demand for major cryptocurrencies but don’t automatically rotate capital into wider market segments.
Retail investors have simultaneously shifted their focus toward traditional equities. Interest in artificial intelligence stocks, rare earth elements, and quantum computing companies has diverted attention from crypto assets. This combination of factors produced extreme market concentration in 2025.
The duration of altcoin rallies dropped sharply during this period. Average rally lengths fell from 60 days in 2024 to just 20 days in 2025.
Meanwhile, a small group of major assets captured the vast majority of new capital entering the space. Most tokens outside this elite tier struggled to attract meaningful investment despite broader market conditions.
Three Scenarios Could Broaden Market Participation
Three distinct pathways could potentially reverse the concentration trend and spread gains more widely in 2026. Each scenario carries different probability levels and would produce varying effects on market structure.
The first path involves the expansion of institutional investment mandates. Exchange-traded funds and digital asset trusts currently focus on Bitcoin and Ethereum almost exclusively.
Recent filings for Solana and XRP exchange-traded funds suggest this may be changing. Approval of these products would open new institutional channels for assets beyond the current top two.
Strong performance from Bitcoin or Ethereum represents the second potential catalyst. A sustained rally in either asset would likely create wealth effects similar to those observed in 2024.
Traders and investors with profits in major tokens historically rotate portions of those gains into smaller assets. However, the magnitude of any such rotation remains uncertain given structural market changes.
The return of retail investor attention forms the third scenario. A rotation of mindshare away from equities and back toward crypto would bring fresh capital and stablecoin creation.
This represents the least probable outcome but would meaningfully expand market participation beyond current levels.
The actual direction of the 2026 market depends on whether any of these catalysts materialize. Capital must find ways to flow beyond large-cap assets for broader recovery to occur.
Understanding these structural dynamics will prove essential for navigating the coming year’s opportunities.
The post Crypto’s Four-Year Cycle Ends: Three Scenarios That Could Define 2026 Markets appeared first on Blockonomi.
Traditional four-year crypto cycles no longer dictate market performance as liquidity flows replace timing
Altcoin rallies shortened from 60 days in 2024 to just 20 days in 2025 amid extreme concentration
ETFs and digital asset trusts created walled gardens that trapped capital in major cryptocurrencies
Three catalysts could broaden 2026 markets: wider ETF mandates, major rallies, or retail rotation
The cryptocurrency market’s traditional four-year cycle appears to be ending, according to recent analysis. The year 2025 failed to produce the expected rally that previous cycles delivered.
Instead, market performance now depends on liquidity flows and investor attention rather than predictable timing patterns.
This shift marks a potential transition point for digital assets, moving from pure speculation toward becoming a more established asset class.
Capital Flow Patterns Reveal New Market Structure
The flow of capital within crypto markets has fundamentally changed over the past year. Previously, gains from Bitcoin would naturally cascade through the ecosystem.
Profits moved from Bitcoin to Ethereum, then filtered down to blue-chip tokens before reaching smaller altcoins. This pattern created broad-based rallies that lifted most assets during bull markets.
Data from Wintermute’s over-the-counter trading desk reveals this transmission mechanism weakened significantly throughout 2025. Exchange-traded funds and digital asset trusts have created what analysts call “walled gardens.”
These investment vehicles generate consistent demand for major cryptocurrencies but don’t automatically rotate capital into wider market segments.
Retail investors have simultaneously shifted their focus toward traditional equities. Interest in artificial intelligence stocks, rare earth elements, and quantum computing companies has diverted attention from crypto assets. This combination of factors produced extreme market concentration in 2025.
The duration of altcoin rallies dropped sharply during this period. Average rally lengths fell from 60 days in 2024 to just 20 days in 2025.
Meanwhile, a small group of major assets captured the vast majority of new capital entering the space. Most tokens outside this elite tier struggled to attract meaningful investment despite broader market conditions.
Three Scenarios Could Broaden Market Participation
Three distinct pathways could potentially reverse the concentration trend and spread gains more widely in 2026. Each scenario carries different probability levels and would produce varying effects on market structure.
The first path involves the expansion of institutional investment mandates. Exchange-traded funds and digital asset trusts currently focus on Bitcoin and Ethereum almost exclusively.
Recent filings for Solana and XRP exchange-traded funds suggest this may be changing. Approval of these products would open new institutional channels for assets beyond the current top two.
Strong performance from Bitcoin or Ethereum represents the second potential catalyst. A sustained rally in either asset would likely create wealth effects similar to those observed in 2024.
Traders and investors with profits in major tokens historically rotate portions of those gains into smaller assets. However, the magnitude of any such rotation remains uncertain given structural market changes.
The return of retail investor attention forms the third scenario. A rotation of mindshare away from equities and back toward crypto would bring fresh capital and stablecoin creation.
This represents the least probable outcome but would meaningfully expand market participation beyond current levels.
The actual direction of the 2026 market depends on whether any of these catalysts materialize. Capital must find ways to flow beyond large-cap assets for broader recovery to occur.
Understanding these structural dynamics will prove essential for navigating the coming year’s opportunities.
The post Crypto’s Four-Year Cycle Ends: Three Scenarios That Could Define 2026 Markets appeared first on Blockonomi.
Sony Innovation Fund Invests $13 Million in Startale Group to Advance Soneium Blockchain
TLDR:
Sony Innovation Fund leads Series A with $13M, lifting Startale’s disclosed funding to $20M total.
Soneium Layer 2 shows traction with 500M+ transactions, 5.4M wallets, and 250+ dApps since January 2025 launch.
Funding accelerates creator-centric, onchain entertainment using AI, IP, and Ethereum L2 rails at global scale.
Sony–Startale partnership deepens via Block Solutions Labs, backing vertical blockchain stacks.
Sony Innovation Fund has committed an additional $13 million to Startale Group, the co-developer of the Soneium blockchain platform. This investment represents the first tranche of Startale’s Series A funding round.
The capital injection brings Startale’s total disclosed funding to $20 million, following a $3.5 million seed round from Sony in 2023 and a $3.5 million seed extension from UOB Venture Management and Samsung Next in 2024.
Partnership Expansion Drives Infrastructure Development
The latest funding deepens the collaboration between Sony and Startale Group, which began over a year ago. Sony Block Solutions Labs Pte. Ltd., the joint venture behind Soneium, serves as the operational foundation for this partnership.
The continued investment signals Sony’s confidence in Startale’s execution capabilities and strategic vision for blockchain infrastructure.
Soneium has achieved notable growth since its mainnet launch in January 2025. The Ethereum Layer 2 network has processed over 500 million transactions and attracted 5.4 million active wallets.
More than 250 decentralized applications currently operate on the platform, establishing Soneium as a prominent player in the Layer 2 ecosystem.
The Startale App functions as the primary access point to Soneium’s ecosystem. It integrates wallet functionality with asset management and application access. Startale USD (USDSC) provides a unified settlement layer that connects applications, users, and payment systems across the network.
Startale Group announced the investment through its official social media channels, stating that Sony Innovation Fund’s follow-on investment reinforces “the long-term shared vision between Sony and Startale to build infrastructure for onchain entertainment.”
The company added that Startale will continue strengthening Soneium as “a creator-centric platform for creator-led value and participatory fan experiences in the AI era.”
Startale Group is proud to announce a $13M follow-on investment from Sony Innovation Fund, reinforcing the long-term shared vision between @Sony and Startale to build infrastructure for onchain entertainment. pic.twitter.com/BNsHhUqxm7
— Startale (@StartaleGroup) January 29, 2026
Entertainment and AI Integration Shape Future Direction
The partnership addresses evolving challenges in the entertainment industry as generative AI transforms content creation and distribution.
Sony’s entertainment and technology expertise combines with Startale’s blockchain infrastructure capabilities. This collaboration aims to develop new models for intellectual property-led platforms and creator-centric monetization.
Sota Watanabe, CEO of Startale Group, emphasized the strategic nature of the relationship. “Startale has been an important partner to Sony since the early days of Soneium,” Watanabe said.
He explained that their vision is “to bring the world on-chain, and Sony’s continued support strengthens our ability to deliver the infrastructure required to realize that vision at global scale.”
Kazuhito Hadano, CEO of Sony Ventures Corporation, described Startale’s comprehensive approach to blockchain development. “Startale is a company working across the blockchain space, from infrastructure to applications,” Hadano noted.
He highlighted the team’s global perspective and focus on “enabling new value flows built on on-chain technologies,” adding that Sony looks forward to “continuing to support Startale’s challenges and ambitions going forward.”
The funding will support Startale’s vertically integrated approach to on-chain infrastructure development. This includes expanding Soneium’s capabilities and enhancing the ecosystem’s application layer.
The partnership demonstrates institutional commitment to building entertainment-native blockchain platforms that bridge traditional media and decentralized technologies.
The post Sony Innovation Fund Invests $13 Million in Startale Group to Advance Soneium Blockchain appeared first on Blockonomi.
Sony Innovation Fund leads Series A with $13M, lifting Startale’s disclosed funding to $20M total.
Soneium Layer 2 shows traction with 500M+ transactions, 5.4M wallets, and 250+ dApps since January 2025 launch.
Funding accelerates creator-centric, onchain entertainment using AI, IP, and Ethereum L2 rails at global scale.
Sony–Startale partnership deepens via Block Solutions Labs, backing vertical blockchain stacks.
Sony Innovation Fund has committed an additional $13 million to Startale Group, the co-developer of the Soneium blockchain platform. This investment represents the first tranche of Startale’s Series A funding round.
The capital injection brings Startale’s total disclosed funding to $20 million, following a $3.5 million seed round from Sony in 2023 and a $3.5 million seed extension from UOB Venture Management and Samsung Next in 2024.
Partnership Expansion Drives Infrastructure Development
The latest funding deepens the collaboration between Sony and Startale Group, which began over a year ago. Sony Block Solutions Labs Pte. Ltd., the joint venture behind Soneium, serves as the operational foundation for this partnership.
The continued investment signals Sony’s confidence in Startale’s execution capabilities and strategic vision for blockchain infrastructure.
Soneium has achieved notable growth since its mainnet launch in January 2025. The Ethereum Layer 2 network has processed over 500 million transactions and attracted 5.4 million active wallets.
More than 250 decentralized applications currently operate on the platform, establishing Soneium as a prominent player in the Layer 2 ecosystem.
The Startale App functions as the primary access point to Soneium’s ecosystem. It integrates wallet functionality with asset management and application access. Startale USD (USDSC) provides a unified settlement layer that connects applications, users, and payment systems across the network.
Startale Group announced the investment through its official social media channels, stating that Sony Innovation Fund’s follow-on investment reinforces “the long-term shared vision between Sony and Startale to build infrastructure for onchain entertainment.”
The company added that Startale will continue strengthening Soneium as “a creator-centric platform for creator-led value and participatory fan experiences in the AI era.”
Startale Group is proud to announce a $13M follow-on investment from Sony Innovation Fund, reinforcing the long-term shared vision between @Sony and Startale to build infrastructure for onchain entertainment. pic.twitter.com/BNsHhUqxm7
— Startale (@StartaleGroup) January 29, 2026
Entertainment and AI Integration Shape Future Direction
The partnership addresses evolving challenges in the entertainment industry as generative AI transforms content creation and distribution.
Sony’s entertainment and technology expertise combines with Startale’s blockchain infrastructure capabilities. This collaboration aims to develop new models for intellectual property-led platforms and creator-centric monetization.
Sota Watanabe, CEO of Startale Group, emphasized the strategic nature of the relationship. “Startale has been an important partner to Sony since the early days of Soneium,” Watanabe said.
He explained that their vision is “to bring the world on-chain, and Sony’s continued support strengthens our ability to deliver the infrastructure required to realize that vision at global scale.”
Kazuhito Hadano, CEO of Sony Ventures Corporation, described Startale’s comprehensive approach to blockchain development. “Startale is a company working across the blockchain space, from infrastructure to applications,” Hadano noted.
He highlighted the team’s global perspective and focus on “enabling new value flows built on on-chain technologies,” adding that Sony looks forward to “continuing to support Startale’s challenges and ambitions going forward.”
The funding will support Startale’s vertically integrated approach to on-chain infrastructure development. This includes expanding Soneium’s capabilities and enhancing the ecosystem’s application layer.
The partnership demonstrates institutional commitment to building entertainment-native blockchain platforms that bridge traditional media and decentralized technologies.
The post Sony Innovation Fund Invests $13 Million in Startale Group to Advance Soneium Blockchain appeared first on Blockonomi.
Joby Aviation (JOBY) Stock: Why Shares Dropped 9% Before the Bell
TLDR
Joby Aviation (JOBY) shares fell 9.1% in premarket trading after the company announced a larger-than-expected $1.2 billion capital raise.
The company is selling $600 million in convertible notes with 0.75% interest and $600 million in stock at $11.35 per share.
Proceeds will fund certification efforts targeting mid-2026 for the Middle East and late 2026 for the U.S.
The convertible notes convert at $14.19 per share, a 25% premium, with capped call transactions at $22.70 to limit dilution.
Analysts forecast $1.2 billion in sales by 2029, but only 18% recommend buying the stock.
Joby Aviation shares took a hit Thursday morning after the electric vertical takeoff and landing aircraft developer unveiled a capital raise larger than expected.
The stock fell 9.1% to $12.15 in premarket action. Joby had closed Wednesday’s session at $13.37.
The company announced it would raise $1.2 billion through two separate offerings. This surpassed its initial $1 billion target.
The funding comes as no surprise to investors familiar with Joby’s cash needs. The company burns roughly $500 million each year as it develops its electric air taxi business.
The Deal Breakdown
Joby structured the raise in two parts. The first involves $600 million in convertible senior notes maturing in 2032.
These notes carry a 0.75% interest rate paid twice yearly. The conversion price was set at $14.19 per share.
That conversion price represents a 25% premium over the stock’s offering price. It gives noteholders upside if shares rally above that level.
The second portion includes $600 million in common stock. Joby priced these shares at $11.35 each, below the current market price.
The company will issue 52.8 million shares at this price. Morgan Stanley is also offering 5.3 million borrowed shares for hedging purposes.
Both offerings close on February 2, 2026. Underwriters have options to purchase additional securities within 30 days.
Joby negotiated capped call transactions with a ceiling of $22.70 per share. These deals help reduce dilution when noteholders eventually convert their bonds.
The company expects to collect about $576 million from the stock sale. The notes should generate roughly $582.9 million.
Where the Money Goes
About $55 million will pay for the capped call transactions. The rest flows into several buckets.
Certification efforts top the list. Joby is racing to get regulatory approval in multiple markets.
The company targets Middle East certification in the first half of 2026. U.S. approval should follow in the second half of the year.
Manufacturing expansion also requires capital. Joby recently acquired a 700,000-square-foot facility in Dayton, Ohio.
The company plans to double production to four aircraft monthly by 2027. Commercial operations preparation and general corporate needs will absorb remaining funds.
Joby doesn’t generate meaningful revenue yet. The business model depends on getting aircraft certified and into service.
Wall Street projects annual sales will hit $1.2 billion by 2029. The stock currently trades at 10 times those estimated future sales.
That valuation looks rich to most analysts. Only 18% rate shares as a Buy, well below the 55% average for S&P 500 stocks.
The average price target sits at $13, roughly in line with Wednesday’s close. The stock has gained 60% over the past year despite Thursday’s pullback.
Morgan Stanley, Allen & Company LLC and BofA Securities are managing the stock offering. Goldman Sachs joined the group handling the convertible notes.
The post Joby Aviation (JOBY) Stock: Why Shares Dropped 9% Before the Bell appeared first on Blockonomi.
Joby Aviation (JOBY) shares fell 9.1% in premarket trading after the company announced a larger-than-expected $1.2 billion capital raise.
The company is selling $600 million in convertible notes with 0.75% interest and $600 million in stock at $11.35 per share.
Proceeds will fund certification efforts targeting mid-2026 for the Middle East and late 2026 for the U.S.
The convertible notes convert at $14.19 per share, a 25% premium, with capped call transactions at $22.70 to limit dilution.
Analysts forecast $1.2 billion in sales by 2029, but only 18% recommend buying the stock.
Joby Aviation shares took a hit Thursday morning after the electric vertical takeoff and landing aircraft developer unveiled a capital raise larger than expected.
The stock fell 9.1% to $12.15 in premarket action. Joby had closed Wednesday’s session at $13.37.
The company announced it would raise $1.2 billion through two separate offerings. This surpassed its initial $1 billion target.
The funding comes as no surprise to investors familiar with Joby’s cash needs. The company burns roughly $500 million each year as it develops its electric air taxi business.
The Deal Breakdown
Joby structured the raise in two parts. The first involves $600 million in convertible senior notes maturing in 2032.
These notes carry a 0.75% interest rate paid twice yearly. The conversion price was set at $14.19 per share.
That conversion price represents a 25% premium over the stock’s offering price. It gives noteholders upside if shares rally above that level.
The second portion includes $600 million in common stock. Joby priced these shares at $11.35 each, below the current market price.
The company will issue 52.8 million shares at this price. Morgan Stanley is also offering 5.3 million borrowed shares for hedging purposes.
Both offerings close on February 2, 2026. Underwriters have options to purchase additional securities within 30 days.
Joby negotiated capped call transactions with a ceiling of $22.70 per share. These deals help reduce dilution when noteholders eventually convert their bonds.
The company expects to collect about $576 million from the stock sale. The notes should generate roughly $582.9 million.
Where the Money Goes
About $55 million will pay for the capped call transactions. The rest flows into several buckets.
Certification efforts top the list. Joby is racing to get regulatory approval in multiple markets.
The company targets Middle East certification in the first half of 2026. U.S. approval should follow in the second half of the year.
Manufacturing expansion also requires capital. Joby recently acquired a 700,000-square-foot facility in Dayton, Ohio.
The company plans to double production to four aircraft monthly by 2027. Commercial operations preparation and general corporate needs will absorb remaining funds.
Joby doesn’t generate meaningful revenue yet. The business model depends on getting aircraft certified and into service.
Wall Street projects annual sales will hit $1.2 billion by 2029. The stock currently trades at 10 times those estimated future sales.
That valuation looks rich to most analysts. Only 18% rate shares as a Buy, well below the 55% average for S&P 500 stocks.
The average price target sits at $13, roughly in line with Wednesday’s close. The stock has gained 60% over the past year despite Thursday’s pullback.
Morgan Stanley, Allen & Company LLC and BofA Securities are managing the stock offering. Goldman Sachs joined the group handling the convertible notes.
The post Joby Aviation (JOBY) Stock: Why Shares Dropped 9% Before the Bell appeared first on Blockonomi.
MP Materials (MP) Stock Drops as Company Slams “Misleading” Price Protection Report
TLDR
MP Materials (MP) dropped over 8% in pre-market trading Thursday after Reuters reported the Trump administration withdrew minimum price guarantees for critical minerals.
MP Materials rejected the report as “inaccurate and misleading,” confirming its Department of War contract and Price Protection Agreement remain fully active.
The stock experienced sharp swings this week, falling 10% Monday after rival USA Rare Earth received government funding before recovering Tuesday.
Analysts rate MP stock a Strong Buy with a $76.13 average price target, representing 13.6% potential upside.
MP Materials runs the only large-scale rare earth mining facility in North America and is building a new Texas manufacturing plant.
MP Materials stock dropped more than 8% in pre-market trading Thursday. A Reuters article claimed the Trump administration backed away from guaranteeing minimum prices for critical minerals projects.
The company fired back quickly. MP Materials labeled the report “inaccurate, misleading, and inconsistent with the facts.”
The rare earth producer said its binding contract with the U.S. Department of War stays in full effect. The Price Protection Agreement from last year also remains unchanged.
MP Materials stated nothing about its contract has been modified. The government’s obligations under the deal haven’t changed either.
Turbulent Trading Week
This week has tested investor nerves. Shares crashed over 10% Monday after the government granted major funding to competitor USA Rare Earth.
Markets worried that a well-funded rival could damage MP’s prospects. But Tuesday brought a reversal as investors reconsidered the situation.
The stock bounced back when traders realized demand can support multiple North American suppliers. Defense contracts and clean energy needs continue driving rare earth demand.
MP Materials holds the top position as America’s rare earth producer. The company runs the Mountain Pass facility in California, the only large-scale rare earth operation in North America.
A new manufacturing facility in Fort Worth, Texas is under development. This expansion aims to create rare earth metals, alloys, and magnets domestically.
What Reuters Got Wrong
The Reuters piece cited funding limits and pricing challenges as reasons for the policy change. A minimum price guarantee would shield revenue when rare earth prices drop.
Losing this potential protection adds uncertainty about future price support. But the reported policy shift doesn’t touch MP’s current contracts or operations.
The company operates independently of any speculated policy changes. Its existing agreements provide the framework for ongoing business.
Financial Metrics and Analyst Views
MP Materials carries an $11.88 billion market cap. Trailing twelve-month sales reached $232.74 million.
The financial snapshot shows mixed results. Revenue fell 11.8% over three years while margins remain negative.
Operating margin sits at negative 79.53%. Net margin stands at negative 50.55%.
Liquidity tells a better story. The current ratio of 8.05 and quick ratio of 7.51 show strong short-term financial position.
The Altman Z-Score of 4.48 indicates solid overall financial health. Institutional investors own 72.35% of shares, showing significant institutional confidence.
TipRanks reports analysts maintain a Strong Buy consensus. Eleven Buy ratings came in during the last three months.
The average analyst price target hits $76.13. That implies 13.6% upside from current trading levels.
Long-term demand drivers remain intact. Defense spending, electric vehicle production, and renewable energy projects all require rare earth materials.
The company’s monopoly on large-scale North American rare earth production provides strategic value. The Texas facility expansion could strengthen this position further when completed.
The post MP Materials (MP) Stock Drops as Company Slams “Misleading” Price Protection Report appeared first on Blockonomi.
MP Materials (MP) dropped over 8% in pre-market trading Thursday after Reuters reported the Trump administration withdrew minimum price guarantees for critical minerals.
MP Materials rejected the report as “inaccurate and misleading,” confirming its Department of War contract and Price Protection Agreement remain fully active.
The stock experienced sharp swings this week, falling 10% Monday after rival USA Rare Earth received government funding before recovering Tuesday.
Analysts rate MP stock a Strong Buy with a $76.13 average price target, representing 13.6% potential upside.
MP Materials runs the only large-scale rare earth mining facility in North America and is building a new Texas manufacturing plant.
MP Materials stock dropped more than 8% in pre-market trading Thursday. A Reuters article claimed the Trump administration backed away from guaranteeing minimum prices for critical minerals projects.
The company fired back quickly. MP Materials labeled the report “inaccurate, misleading, and inconsistent with the facts.”
The rare earth producer said its binding contract with the U.S. Department of War stays in full effect. The Price Protection Agreement from last year also remains unchanged.
MP Materials stated nothing about its contract has been modified. The government’s obligations under the deal haven’t changed either.
Turbulent Trading Week
This week has tested investor nerves. Shares crashed over 10% Monday after the government granted major funding to competitor USA Rare Earth.
Markets worried that a well-funded rival could damage MP’s prospects. But Tuesday brought a reversal as investors reconsidered the situation.
The stock bounced back when traders realized demand can support multiple North American suppliers. Defense contracts and clean energy needs continue driving rare earth demand.
MP Materials holds the top position as America’s rare earth producer. The company runs the Mountain Pass facility in California, the only large-scale rare earth operation in North America.
A new manufacturing facility in Fort Worth, Texas is under development. This expansion aims to create rare earth metals, alloys, and magnets domestically.
What Reuters Got Wrong
The Reuters piece cited funding limits and pricing challenges as reasons for the policy change. A minimum price guarantee would shield revenue when rare earth prices drop.
Losing this potential protection adds uncertainty about future price support. But the reported policy shift doesn’t touch MP’s current contracts or operations.
The company operates independently of any speculated policy changes. Its existing agreements provide the framework for ongoing business.
Financial Metrics and Analyst Views
MP Materials carries an $11.88 billion market cap. Trailing twelve-month sales reached $232.74 million.
The financial snapshot shows mixed results. Revenue fell 11.8% over three years while margins remain negative.
Operating margin sits at negative 79.53%. Net margin stands at negative 50.55%.
Liquidity tells a better story. The current ratio of 8.05 and quick ratio of 7.51 show strong short-term financial position.
The Altman Z-Score of 4.48 indicates solid overall financial health. Institutional investors own 72.35% of shares, showing significant institutional confidence.
TipRanks reports analysts maintain a Strong Buy consensus. Eleven Buy ratings came in during the last three months.
The average analyst price target hits $76.13. That implies 13.6% upside from current trading levels.
Long-term demand drivers remain intact. Defense spending, electric vehicle production, and renewable energy projects all require rare earth materials.
The company’s monopoly on large-scale North American rare earth production provides strategic value. The Texas facility expansion could strengthen this position further when completed.
The post MP Materials (MP) Stock Drops as Company Slams “Misleading” Price Protection Report appeared first on Blockonomi.
SAP Stock: Shares Fall 11% After Earnings Report – Here’s Why
TLDR
SAP shares crashed 11% Thursday after Q4 cloud backlog grew 25%, missing Wall Street’s 26% projection
The drop represents SAP’s largest single-day decline since October 2020 when the stock fell 22%
Management warned cloud backlog growth will “slightly decelerate” in 2026, adding to investor concerns
Fourth quarter results showed cloud revenue up 26% to 5.61 billion euros and total revenue climbing 9% to 9.68 billion euros
SAP launched a 10 billion euro share repurchase program starting February 2026 and ending December 2027
SAP took a beating Thursday. The German software company saw shares drop 11% in early European trading.
The trigger was disappointing cloud growth numbers.
#SAP SE$SAP, Q4-25.
Results:
Adj. EPS: €1.62
Revenue: €9.68B
Net Income: €1.90B
Cloud revenue hit €5.61B in Q4, supported by strong growth in SAP Business AI and Cloud ERP adoption. pic.twitter.com/uoHE4QGJzp
— EarningsTime (@Earnings_Time) January 29, 2026
SAP reported current cloud backlog growth of 25% for the fourth quarter. That brought the total to 21.05 billion euros, or about $25.17 billion. Wall Street expected 26% growth.
Missing by one percentage point might seem trivial. In the software industry, it’s anything but.
This marks SAP’s worst trading session since October 2020. Back then, shares plummeted 22% after weak third-quarter earnings. The stock has now fallen more than 30% over the past 12 months.
CEO Christian Klein attempted damage control. He said the Q4 cloud backlog builds a “strong foundation” for revenue acceleration through 2027.
Investors didn’t share his optimism.
Forward Guidance Raises Red Flags
The guidance created bigger problems than the Q4 miss. SAP expects cloud revenue growth between 23% and 25% for 2026. Analysts wanted 24% to 26%.
Management also cautioned that cloud backlog growth would “slightly decelerate” this year.
That’s the opposite of what the market wanted.
SAP attributed the backlog shortfall to timing. Large transformation deals scheduled revenue recognition for outer years. Legal requirements for termination clauses also played a role. Together, these factors reduced growth by approximately 1 percentage point.
UBS analysts called the cloud backlog results a “disappointment” in their Thursday analysis.
Citi analysts wrote that SAP’s fundamentals stay solid. But they questioned whether the results satisfy investors given current sector weakness. AI spending concerns and bubble fears continue weighing on software stocks.
Quarterly Results Show Mixed Picture
The actual Q4 performance had bright spots. Total revenue reached 9.68 billion euros, growing 9% year-over-year. Cloud business sales surged 26% to 5.61 billion euros.
Geography mattered. Canada, Brazil, Germany, India, Italy, Spain, the UK and South Korea delivered strong cloud performance. Australia, Japan, Mexico, Saudi Arabia, Singapore and the U.S. also contributed solid results.
SAP closed 2025 with full-year revenue of 36.80 billion euros. That’s 11% growth at constant currencies.
Net profit for the quarter came in at 1.89 billion euros compared to 1.63 billion euros a year earlier. Operating profit increased to 2.83 billion euros from 2.44 billion euros. Operating margin reached 29.2%.
SAP sweetened the deal with a share buyback announcement. The company will repurchase up to 10 billion euros worth of stock. The program kicks off in February 2026 and concludes at the end of 2027.
For 2026, SAP forecasts non-IFRS operating profit between 11.9 billion and 12.3 billion euros. Free cash flow should land around 10 billion euros. The company continues transitioning from software licenses to subscription-based cloud services.
The post SAP Stock: Shares Fall 11% After Earnings Report – Here’s Why appeared first on Blockonomi.
SAP shares crashed 11% Thursday after Q4 cloud backlog grew 25%, missing Wall Street’s 26% projection
The drop represents SAP’s largest single-day decline since October 2020 when the stock fell 22%
Management warned cloud backlog growth will “slightly decelerate” in 2026, adding to investor concerns
Fourth quarter results showed cloud revenue up 26% to 5.61 billion euros and total revenue climbing 9% to 9.68 billion euros
SAP launched a 10 billion euro share repurchase program starting February 2026 and ending December 2027
SAP took a beating Thursday. The German software company saw shares drop 11% in early European trading.
The trigger was disappointing cloud growth numbers.
#SAP SE$SAP, Q4-25.
Results:
Adj. EPS: €1.62
Revenue: €9.68B
Net Income: €1.90B
Cloud revenue hit €5.61B in Q4, supported by strong growth in SAP Business AI and Cloud ERP adoption. pic.twitter.com/uoHE4QGJzp
— EarningsTime (@Earnings_Time) January 29, 2026
SAP reported current cloud backlog growth of 25% for the fourth quarter. That brought the total to 21.05 billion euros, or about $25.17 billion. Wall Street expected 26% growth.
Missing by one percentage point might seem trivial. In the software industry, it’s anything but.
This marks SAP’s worst trading session since October 2020. Back then, shares plummeted 22% after weak third-quarter earnings. The stock has now fallen more than 30% over the past 12 months.
CEO Christian Klein attempted damage control. He said the Q4 cloud backlog builds a “strong foundation” for revenue acceleration through 2027.
Investors didn’t share his optimism.
Forward Guidance Raises Red Flags
The guidance created bigger problems than the Q4 miss. SAP expects cloud revenue growth between 23% and 25% for 2026. Analysts wanted 24% to 26%.
Management also cautioned that cloud backlog growth would “slightly decelerate” this year.
That’s the opposite of what the market wanted.
SAP attributed the backlog shortfall to timing. Large transformation deals scheduled revenue recognition for outer years. Legal requirements for termination clauses also played a role. Together, these factors reduced growth by approximately 1 percentage point.
UBS analysts called the cloud backlog results a “disappointment” in their Thursday analysis.
Citi analysts wrote that SAP’s fundamentals stay solid. But they questioned whether the results satisfy investors given current sector weakness. AI spending concerns and bubble fears continue weighing on software stocks.
Quarterly Results Show Mixed Picture
The actual Q4 performance had bright spots. Total revenue reached 9.68 billion euros, growing 9% year-over-year. Cloud business sales surged 26% to 5.61 billion euros.
Geography mattered. Canada, Brazil, Germany, India, Italy, Spain, the UK and South Korea delivered strong cloud performance. Australia, Japan, Mexico, Saudi Arabia, Singapore and the U.S. also contributed solid results.
SAP closed 2025 with full-year revenue of 36.80 billion euros. That’s 11% growth at constant currencies.
Net profit for the quarter came in at 1.89 billion euros compared to 1.63 billion euros a year earlier. Operating profit increased to 2.83 billion euros from 2.44 billion euros. Operating margin reached 29.2%.
SAP sweetened the deal with a share buyback announcement. The company will repurchase up to 10 billion euros worth of stock. The program kicks off in February 2026 and concludes at the end of 2027.
For 2026, SAP forecasts non-IFRS operating profit between 11.9 billion and 12.3 billion euros. Free cash flow should land around 10 billion euros. The company continues transitioning from software licenses to subscription-based cloud services.
The post SAP Stock: Shares Fall 11% After Earnings Report – Here’s Why appeared first on Blockonomi.
Nvidia (NVDA) Stock Gains as Big Tech Spending Spree Fuels Chip Demand
TLDR
Microsoft spent $37.5 billion on AI infrastructure in Q2, with most going to chips
Meta projects $135 billion in 2026 capex, doubling last year’s investment
Both companies say AI demand outpaces their computing supply
China greenlit Nvidia H200 chip sales to ByteDance, Alibaba, and Tencent
Nvidia stock hit highest close since early November
Nvidia shares reached their highest closing price since early November on Wednesday. The stock dipped 0.7% after hours but continues trading near recent highs.
The rally comes as major technology companies announce bigger-than-expected AI spending plans. Microsoft and Meta both revealed investments that caught Wall Street off guard.
Microsoft’s fiscal second quarter capital expenditures totaled $37.5 billion. That beat the Street’s $36.7 billion estimate. Roughly two-thirds went toward purchasing chips.
CFO Amy Hood explained that AI hardware shortages continue limiting cloud business growth. The company uses its in-house Maia 200 chip alongside processors from Nvidia and AMD.
CEO Satya Nadella stressed flexibility in the company’s chip strategy. “We want to make sure we’re not locked into any one thing,” he said during the earnings call.
Meta Goes All-In on AI Capacity
Meta Platforms announced even larger plans for 2026. The social media giant expects to spend up to $135 billion this year. That’s 20% above analyst expectations and twice what it spent in 2025.
CFO Susan Li described a significant capacity gap. “Demands for compute resources across the company have increased even faster than our supply,” she told analysts.
The company plans to add capacity throughout the year. But Li warned constraints will persist through most of 2026. Meta’s own data center facilities won’t contribute meaningfully until late in the year.
China Opens Door for H200 Sales
Nvidia scored a win in China on Wednesday. Reuters reported Chinese authorities approved H200 chip sales to major domestic tech firms.
ByteDance, Alibaba, and Tencent can now purchase the advanced system. This reverses earlier pressure for companies to buy Chinese-made alternatives.
The U.S. had authorized these sales earlier in 2026. But Chinese regulatory approval remained uncertain until this week. Nvidia previously estimated China export restrictions cost $8 billion in lost revenue.
Broader Chip Sector Momentum
Other semiconductor companies posted strong results Wednesday. ASML reported fourth-quarter earnings and orders that topped expectations. The Dutch firm’s 2026 sales guidance also exceeded forecasts.
SK Hynix shares jumped over 5% after announcing record 2025 profits. The VanEck Semiconductor ETF climbed 1.9%.
Nvidia shares gained approximately 1.6% in premarket trading. The moves reflect growing confidence that AI chip demand will remain robust as tech giants race to expand computing power.
The post Nvidia (NVDA) Stock Gains as Big Tech Spending Spree Fuels Chip Demand appeared first on Blockonomi.
Microsoft spent $37.5 billion on AI infrastructure in Q2, with most going to chips
Meta projects $135 billion in 2026 capex, doubling last year’s investment
Both companies say AI demand outpaces their computing supply
China greenlit Nvidia H200 chip sales to ByteDance, Alibaba, and Tencent
Nvidia stock hit highest close since early November
Nvidia shares reached their highest closing price since early November on Wednesday. The stock dipped 0.7% after hours but continues trading near recent highs.
The rally comes as major technology companies announce bigger-than-expected AI spending plans. Microsoft and Meta both revealed investments that caught Wall Street off guard.
Microsoft’s fiscal second quarter capital expenditures totaled $37.5 billion. That beat the Street’s $36.7 billion estimate. Roughly two-thirds went toward purchasing chips.
CFO Amy Hood explained that AI hardware shortages continue limiting cloud business growth. The company uses its in-house Maia 200 chip alongside processors from Nvidia and AMD.
CEO Satya Nadella stressed flexibility in the company’s chip strategy. “We want to make sure we’re not locked into any one thing,” he said during the earnings call.
Meta Goes All-In on AI Capacity
Meta Platforms announced even larger plans for 2026. The social media giant expects to spend up to $135 billion this year. That’s 20% above analyst expectations and twice what it spent in 2025.
CFO Susan Li described a significant capacity gap. “Demands for compute resources across the company have increased even faster than our supply,” she told analysts.
The company plans to add capacity throughout the year. But Li warned constraints will persist through most of 2026. Meta’s own data center facilities won’t contribute meaningfully until late in the year.
China Opens Door for H200 Sales
Nvidia scored a win in China on Wednesday. Reuters reported Chinese authorities approved H200 chip sales to major domestic tech firms.
ByteDance, Alibaba, and Tencent can now purchase the advanced system. This reverses earlier pressure for companies to buy Chinese-made alternatives.
The U.S. had authorized these sales earlier in 2026. But Chinese regulatory approval remained uncertain until this week. Nvidia previously estimated China export restrictions cost $8 billion in lost revenue.
Broader Chip Sector Momentum
Other semiconductor companies posted strong results Wednesday. ASML reported fourth-quarter earnings and orders that topped expectations. The Dutch firm’s 2026 sales guidance also exceeded forecasts.
SK Hynix shares jumped over 5% after announcing record 2025 profits. The VanEck Semiconductor ETF climbed 1.9%.
Nvidia shares gained approximately 1.6% in premarket trading. The moves reflect growing confidence that AI chip demand will remain robust as tech giants race to expand computing power.
The post Nvidia (NVDA) Stock Gains as Big Tech Spending Spree Fuels Chip Demand appeared first on Blockonomi.
Microsoft (MSFT) Stock: Why Wall Street Sold After a Solid Earnings Beat
TLDR
Microsoft posted $4.14 per share earnings on $81.3 billion revenue, topping analyst estimates but shares fell 6.8% after hours
Azure cloud revenue increased 39% year-over-year but represented a slowdown from the prior quarter’s 40% growth
Capital expenditures reached $37.5 billion for AI infrastructure, up 66% from last year and above expectations
The company revealed 15 million annual subscribers for its M365 Copilot AI assistant priced at $30 per month
OpenAI accounts for 45% of Microsoft’s $625 billion commercial backlog, raising questions about partner dependency
Microsoft exceeded Wall Street expectations Wednesday but watched its stock tumble in extended trading. The company reported adjusted earnings of $4.14 per share with revenue of $81.3 billion for its fiscal second quarter.
$MSFT (Microsoft) #earnings are out: pic.twitter.com/ZAgSBQ9qHd
— The Earnings Correspondent (@earnings_guy) January 28, 2026
Analysts had forecast $3.91 per share on $80.3 billion in revenue. Despite clearing these hurdles, shares dropped 6.8% after hours. The disconnect between strong results and negative reaction centers on cloud growth trends and AI spending levels.
Azure cloud platform revenue grew 39% during the October-December period. While this beat the 37.8% analyst estimate, it marked a deceleration from last quarter’s 40% pace. Investors are watching Azure closely as Microsoft’s primary growth engine.
CFO Amy Hood projected third-quarter Azure growth between 37% and 38% in constant currency. This guidance fell roughly in line with the 37.6% Wall Street estimate but signals continued slowdown. The company also forecast overall revenue with a midpoint of $81.2 billion, matching consensus.
Record AI Spending Raises Eyebrows
Microsoft spent $37.5 billion on capital expenditures during the quarter. This represents a 66% jump year-over-year. About two-thirds went toward computing chips and AI infrastructure.
The spending exceeded analyst predictions of $34.31 billion by over $3 billion. Some investors questioned whether the massive outlays will generate adequate returns. Revenue grew 17% while cost of revenue increased 19%, a trend that sparked concern.
CEO Satya Nadella disclosed that M365 Copilot now has 15 million annual users. The $30 monthly AI assistant represents Microsoft’s flagship AI product for businesses. This marked the first time the company shared specific user metrics for the tool.
OpenAI Relationship Under Scrutiny
The OpenAI partnership produced mixed results. Microsoft’s “Other” segment swung to $10 billion income from a $2.3 billion loss last year. The change stems from how Microsoft accounts for its 27% stake following OpenAI’s restructuring.
Commercial remaining performance obligations hit $625 billion, up 110% year-over-year. However, OpenAI alone drove 45% of this backlog. The AI startup has pledged to spend at least $281 billion with Microsoft over time.
Excluding OpenAI, cloud backlog grew 28%. This figure includes a $30 billion deal with Anthropic. The heavy reliance on OpenAI concerned some analysts as competition intensifies from Google’s Gemini and other AI models.
Google recently won Apple as a major customer for its AI technology. This challenges Microsoft’s early mover advantage in artificial intelligence. The company has invested over $200 billion in AI since fiscal 2024 began.
Hood said capital spending will decline slightly in the current quarter. She warned that rising memory chip costs will pressure cloud margins over time. Total quarterly revenue rose 17% to $81.3 billion, ahead of the $80.27 billion estimate.
The post Microsoft (MSFT) Stock: Why Wall Street Sold After a Solid Earnings Beat appeared first on Blockonomi.
Microsoft posted $4.14 per share earnings on $81.3 billion revenue, topping analyst estimates but shares fell 6.8% after hours
Azure cloud revenue increased 39% year-over-year but represented a slowdown from the prior quarter’s 40% growth
Capital expenditures reached $37.5 billion for AI infrastructure, up 66% from last year and above expectations
The company revealed 15 million annual subscribers for its M365 Copilot AI assistant priced at $30 per month
OpenAI accounts for 45% of Microsoft’s $625 billion commercial backlog, raising questions about partner dependency
Microsoft exceeded Wall Street expectations Wednesday but watched its stock tumble in extended trading. The company reported adjusted earnings of $4.14 per share with revenue of $81.3 billion for its fiscal second quarter.
$MSFT (Microsoft) #earnings are out: pic.twitter.com/ZAgSBQ9qHd
— The Earnings Correspondent (@earnings_guy) January 28, 2026
Analysts had forecast $3.91 per share on $80.3 billion in revenue. Despite clearing these hurdles, shares dropped 6.8% after hours. The disconnect between strong results and negative reaction centers on cloud growth trends and AI spending levels.
Azure cloud platform revenue grew 39% during the October-December period. While this beat the 37.8% analyst estimate, it marked a deceleration from last quarter’s 40% pace. Investors are watching Azure closely as Microsoft’s primary growth engine.
CFO Amy Hood projected third-quarter Azure growth between 37% and 38% in constant currency. This guidance fell roughly in line with the 37.6% Wall Street estimate but signals continued slowdown. The company also forecast overall revenue with a midpoint of $81.2 billion, matching consensus.
Record AI Spending Raises Eyebrows
Microsoft spent $37.5 billion on capital expenditures during the quarter. This represents a 66% jump year-over-year. About two-thirds went toward computing chips and AI infrastructure.
The spending exceeded analyst predictions of $34.31 billion by over $3 billion. Some investors questioned whether the massive outlays will generate adequate returns. Revenue grew 17% while cost of revenue increased 19%, a trend that sparked concern.
CEO Satya Nadella disclosed that M365 Copilot now has 15 million annual users. The $30 monthly AI assistant represents Microsoft’s flagship AI product for businesses. This marked the first time the company shared specific user metrics for the tool.
OpenAI Relationship Under Scrutiny
The OpenAI partnership produced mixed results. Microsoft’s “Other” segment swung to $10 billion income from a $2.3 billion loss last year. The change stems from how Microsoft accounts for its 27% stake following OpenAI’s restructuring.
Commercial remaining performance obligations hit $625 billion, up 110% year-over-year. However, OpenAI alone drove 45% of this backlog. The AI startup has pledged to spend at least $281 billion with Microsoft over time.
Excluding OpenAI, cloud backlog grew 28%. This figure includes a $30 billion deal with Anthropic. The heavy reliance on OpenAI concerned some analysts as competition intensifies from Google’s Gemini and other AI models.
Google recently won Apple as a major customer for its AI technology. This challenges Microsoft’s early mover advantage in artificial intelligence. The company has invested over $200 billion in AI since fiscal 2024 began.
Hood said capital spending will decline slightly in the current quarter. She warned that rising memory chip costs will pressure cloud margins over time. Total quarterly revenue rose 17% to $81.3 billion, ahead of the $80.27 billion estimate.
The post Microsoft (MSFT) Stock: Why Wall Street Sold After a Solid Earnings Beat appeared first on Blockonomi.
Alibaba (BABA) Stock: $2B Robovan Merger and New Chip Send Shares Higher
TLDR
Alibaba’s Cainiao logistics division is combining its self-driving technology unit with Zelos Technology in a transaction worth $2 billion
The combined business will operate under the Cainiao Robovan brand and manage over 20,000 autonomous delivery vehicles
Alibaba introduced the Zhenwu 810E processor through its T-Head division, designed to compete with Nvidia’s data center chips
Zelos specializes in autonomous delivery for postal services, consumer goods, and express logistics since its 2021 founding
Alibaba will hold equity in Zelos while the robotics company maintains operational control of the merged entity
Alibaba stock advanced in early trading after the company disclosed progress in two key technology areas. The developments span semiconductor design and autonomous logistics.
The e-commerce giant’s T-Head semiconductor division launched the Zhenwu 810E processor. The chip recently surfaced on Alibaba’s corporate website.
Technical observers suggest the processor targets performance comparable to Nvidia’s A800 and A100 models. These chips power artificial intelligence applications in data centers worldwide.
Alibaba has not published complete technical documentation for the Zhenwu 810E. The processor supports the company’s cloud computing platform and machine learning systems.
Logistics Technology Consolidation
The Wall Street Journal reported Cainiao’s plan to merge its autonomous vehicle operations with Zelos Technology. Sources with knowledge of the transaction provided details to the publication.
The combined entity carries a $2 billion valuation. Alibaba will acquire an ownership position in Zelos through the deal structure.
Cainiao’s self-driving vehicle division will integrate with Zelos operations. The merged business will use the Cainiao Robovan name.
The new company will control more than 20,000 robotic delivery vehicles. Board representation for Cainiao is expected as part of the agreement.
Strategic Technology Development
Chinese technology firms are increasing investment in proprietary chip design. Restrictions on advanced semiconductor imports have accelerated this trend.
Custom processor development allows Alibaba to optimize hardware for specific applications. This approach improves compatibility with internal software systems and cloud services.
The robovan merger expands Alibaba’s logistics automation capabilities. Automated delivery systems reduce labor costs and increase operational efficiency.
Zelos brings expertise in autonomous delivery across multiple sectors. The company serves postal operations, retail distribution, and express shipping clients.
Market Response
Analysts covering Alibaba maintain positive ratings on the stock. TipRanks data shows 14 buy recommendations with an average target price of $203.09.
The stock has gained approximately 90% over the past twelve months. Wednesday’s announcements contributed to pre-market price increases.
Neither Alibaba nor Zelos provided official statements regarding the merger report. Reuters was unable to independently confirm the Wall Street Journal’s reporting.
A Cainiao executive will join the Zelos board following deal completion. Zelos will retain management authority over the combined autonomous vehicle operations.
The Cainiao Robovan fleet will serve postal services, fast-moving consumer goods distribution, and express delivery markets. Operations will begin after regulatory approval and transaction closing.
The post Alibaba (BABA) Stock: $2B Robovan Merger and New Chip Send Shares Higher appeared first on Blockonomi.
Alibaba’s Cainiao logistics division is combining its self-driving technology unit with Zelos Technology in a transaction worth $2 billion
The combined business will operate under the Cainiao Robovan brand and manage over 20,000 autonomous delivery vehicles
Alibaba introduced the Zhenwu 810E processor through its T-Head division, designed to compete with Nvidia’s data center chips
Zelos specializes in autonomous delivery for postal services, consumer goods, and express logistics since its 2021 founding
Alibaba will hold equity in Zelos while the robotics company maintains operational control of the merged entity
Alibaba stock advanced in early trading after the company disclosed progress in two key technology areas. The developments span semiconductor design and autonomous logistics.
The e-commerce giant’s T-Head semiconductor division launched the Zhenwu 810E processor. The chip recently surfaced on Alibaba’s corporate website.
Technical observers suggest the processor targets performance comparable to Nvidia’s A800 and A100 models. These chips power artificial intelligence applications in data centers worldwide.
Alibaba has not published complete technical documentation for the Zhenwu 810E. The processor supports the company’s cloud computing platform and machine learning systems.
Logistics Technology Consolidation
The Wall Street Journal reported Cainiao’s plan to merge its autonomous vehicle operations with Zelos Technology. Sources with knowledge of the transaction provided details to the publication.
The combined entity carries a $2 billion valuation. Alibaba will acquire an ownership position in Zelos through the deal structure.
Cainiao’s self-driving vehicle division will integrate with Zelos operations. The merged business will use the Cainiao Robovan name.
The new company will control more than 20,000 robotic delivery vehicles. Board representation for Cainiao is expected as part of the agreement.
Strategic Technology Development
Chinese technology firms are increasing investment in proprietary chip design. Restrictions on advanced semiconductor imports have accelerated this trend.
Custom processor development allows Alibaba to optimize hardware for specific applications. This approach improves compatibility with internal software systems and cloud services.
The robovan merger expands Alibaba’s logistics automation capabilities. Automated delivery systems reduce labor costs and increase operational efficiency.
Zelos brings expertise in autonomous delivery across multiple sectors. The company serves postal operations, retail distribution, and express shipping clients.
Market Response
Analysts covering Alibaba maintain positive ratings on the stock. TipRanks data shows 14 buy recommendations with an average target price of $203.09.
The stock has gained approximately 90% over the past twelve months. Wednesday’s announcements contributed to pre-market price increases.
Neither Alibaba nor Zelos provided official statements regarding the merger report. Reuters was unable to independently confirm the Wall Street Journal’s reporting.
A Cainiao executive will join the Zelos board following deal completion. Zelos will retain management authority over the combined autonomous vehicle operations.
The Cainiao Robovan fleet will serve postal services, fast-moving consumer goods distribution, and express delivery markets. Operations will begin after regulatory approval and transaction closing.
The post Alibaba (BABA) Stock: $2B Robovan Merger and New Chip Send Shares Higher appeared first on Blockonomi.
Meta Stock: Earnings Beat Triggers Double-Digit Share Rally
TLDR
Meta delivered Q4 earnings of $8.88 per share on $59.9 billion revenue, surpassing analyst estimates
Stock price jumped over 10% in after-hours trading following the earnings announcement
Company plans AI infrastructure spending of $115-$135 billion in 2026, nearly double 2025 levels
Meta’s apps drew 3.58 billion daily active users during the quarter
Reality Labs unit posted $6 billion in losses against $955 million revenue
Meta reported fourth quarter results Wednesday that beat Wall Street predictions. The social media company posted earnings of $8.88 per share on revenue of $59.9 billion.
JUST IN: $META REPORTED EARNINGS
EPS of $8.88 beating expectations of $8.19
Revenue of $59.9B beating expectations of $58.5B
Meta said it expects to spend between $115B-$135B on Capital Expenditures (CAPEX) in 2026 above expectations of $111B pic.twitter.com/qogRc7p6cT
— Evan (@StockMKTNewz) January 28, 2026
Analysts had projected earnings of $8.16 per share and revenue of $58.4 billion. The company generated $22.8 billion in profit during the quarter.
Share price climbed more than 10% in extended trading. Investors responded positively to the financial performance and forward guidance.
Meta expects current quarter revenue could reach $56.5 billion. The company’s apps attracted 3.58 billion daily users worldwide.
CEO Mark Zuckerberg described 2025 as a year of strong performance. Operating expenses increased 40% year-over-year to $35.15 billion.
Record AI Spending Plans Announced
Meta outlined plans to spend between $115 billion and $135 billion on capital expenditures in 2026. That compares to $72.22 billion spent throughout 2025.
The investment will fund AI infrastructure including data centers and computing systems. Fourth quarter capital spending alone reached $22.14 billion.
Meta joins Amazon, Google, and Microsoft in a race to build AI capabilities. The company recently acquired 49% of Scale AI for $14.3 billion.
Scale AI CEO Alexandr Wang joined Meta as chief AI officer. He now leads Meta Superintelligence Labs.
Zuckerberg stated he looks forward to advancing personal superintelligence globally in 2026. The company views AI as central to future revenue growth.
Reality Labs Losses Continue
The Reality Labs division brought in $955 million in revenue but lost $6 billion. Analysts had expected a $5.9 billion operating loss.
Meta’s virtual and augmented reality unit has consistently posted losses. The company recently reduced headcount in its metaverse operations.
Some savings will redirect toward wearables including AI-powered smart glasses. Meta partnered with EssilorLuxottica on Ray-Ban smart glasses.
Zuckerberg predicts smart glasses will become the next major computing platform. He believes they could eventually replace smartphones entirely.
Analysts see potential for improved advertising efficiency through wearables technology. However, profitability remains years away.
AI Development Faces Challenges
Meta encountered delays with its Llama 4 Behemoth AI model. The company may switch to a proprietary model for its next release.
That would abandon the open-weights strategy allowing third-party developers access. CNBC reported Meta is considering this strategic shift.
Google’s Gemini 3 model currently leads the AI race. The search giant has moved ahead of both Meta and OpenAI.
Meta started 2025 as a frontrunner but faces increased competition. The company spent $14.3 billion bringing Wang aboard to accelerate AI development.
A landmark trial accusing Meta of addicting young users to social media began in Los Angeles. The case involves allegations of mental health harm to a 19-year-old woman.
Zuckerberg will testify during the proceedings. ByteDance and Snap settled before trial, leaving Meta and YouTube as defendants.
The FTC announced it will appeal its antitrust case loss against Meta last week. The case alleged Meta purchased Instagram and WhatsApp to eliminate competition.
Australia implemented a social media ban for users under 16. France is considering similar legislation targeting youth social media access.
The post Meta Stock: Earnings Beat Triggers Double-Digit Share Rally appeared first on Blockonomi.
Meta delivered Q4 earnings of $8.88 per share on $59.9 billion revenue, surpassing analyst estimates
Stock price jumped over 10% in after-hours trading following the earnings announcement
Company plans AI infrastructure spending of $115-$135 billion in 2026, nearly double 2025 levels
Meta’s apps drew 3.58 billion daily active users during the quarter
Reality Labs unit posted $6 billion in losses against $955 million revenue
Meta reported fourth quarter results Wednesday that beat Wall Street predictions. The social media company posted earnings of $8.88 per share on revenue of $59.9 billion.
JUST IN: $META REPORTED EARNINGS
EPS of $8.88 beating expectations of $8.19
Revenue of $59.9B beating expectations of $58.5B
Meta said it expects to spend between $115B-$135B on Capital Expenditures (CAPEX) in 2026 above expectations of $111B pic.twitter.com/qogRc7p6cT
— Evan (@StockMKTNewz) January 28, 2026
Analysts had projected earnings of $8.16 per share and revenue of $58.4 billion. The company generated $22.8 billion in profit during the quarter.
Share price climbed more than 10% in extended trading. Investors responded positively to the financial performance and forward guidance.
Meta expects current quarter revenue could reach $56.5 billion. The company’s apps attracted 3.58 billion daily users worldwide.
CEO Mark Zuckerberg described 2025 as a year of strong performance. Operating expenses increased 40% year-over-year to $35.15 billion.
Record AI Spending Plans Announced
Meta outlined plans to spend between $115 billion and $135 billion on capital expenditures in 2026. That compares to $72.22 billion spent throughout 2025.
The investment will fund AI infrastructure including data centers and computing systems. Fourth quarter capital spending alone reached $22.14 billion.
Meta joins Amazon, Google, and Microsoft in a race to build AI capabilities. The company recently acquired 49% of Scale AI for $14.3 billion.
Scale AI CEO Alexandr Wang joined Meta as chief AI officer. He now leads Meta Superintelligence Labs.
Zuckerberg stated he looks forward to advancing personal superintelligence globally in 2026. The company views AI as central to future revenue growth.
Reality Labs Losses Continue
The Reality Labs division brought in $955 million in revenue but lost $6 billion. Analysts had expected a $5.9 billion operating loss.
Meta’s virtual and augmented reality unit has consistently posted losses. The company recently reduced headcount in its metaverse operations.
Some savings will redirect toward wearables including AI-powered smart glasses. Meta partnered with EssilorLuxottica on Ray-Ban smart glasses.
Zuckerberg predicts smart glasses will become the next major computing platform. He believes they could eventually replace smartphones entirely.
Analysts see potential for improved advertising efficiency through wearables technology. However, profitability remains years away.
AI Development Faces Challenges
Meta encountered delays with its Llama 4 Behemoth AI model. The company may switch to a proprietary model for its next release.
That would abandon the open-weights strategy allowing third-party developers access. CNBC reported Meta is considering this strategic shift.
Google’s Gemini 3 model currently leads the AI race. The search giant has moved ahead of both Meta and OpenAI.
Meta started 2025 as a frontrunner but faces increased competition. The company spent $14.3 billion bringing Wang aboard to accelerate AI development.
A landmark trial accusing Meta of addicting young users to social media began in Los Angeles. The case involves allegations of mental health harm to a 19-year-old woman.
Zuckerberg will testify during the proceedings. ByteDance and Snap settled before trial, leaving Meta and YouTube as defendants.
The FTC announced it will appeal its antitrust case loss against Meta last week. The case alleged Meta purchased Instagram and WhatsApp to eliminate competition.
Australia implemented a social media ban for users under 16. France is considering similar legislation targeting youth social media access.
The post Meta Stock: Earnings Beat Triggers Double-Digit Share Rally appeared first on Blockonomi.
Toyota (TM) Stock: World’s Top Automaker Crown Retained for Sixth Year
TLDR
Toyota Motor posted record 2025 sales of 10.5 million Toyota and Lexus vehicles, a 3.7% increase from 2024, maintaining its sixth consecutive year as the world’s top-selling automaker.
U.S. market sales surged 7.3% to 2.93 million units, fueled by hybrid vehicles like the RAV4 and Prius, which now represent 42% of global sales.
The automaker absorbed an estimated $9.7 billion in tariff costs rather than raising prices, with only 20% of U.S. sales coming from imports.
Toyota raised its full-year operating profit forecast despite tariff pressures, with analysts projecting a 30% operating profit rebound in fiscal Q3 results due February 6.
Shares climbed 3% following the announcement as the company’s manufacturing strategy and hybrid focus outperformed competitors like Hyundai, which saw operating profits drop 19.5%.
Toyota Motor Corporation delivered a masterclass in navigating tariff uncertainty. The automaker reported record sales of 10.5 million vehicles for its Toyota and Lexus brands in 2025, marking a 3.7% jump from the previous year.
Toyota powered to record sales in 2025 even as Trump's tariffs overshadowed the auto industry.https://t.co/5ZkNuqcfjx pic.twitter.com/NhQ5giuCnL
— Nikkei Asia (@NikkeiAsia) January 29, 2026
The announcement sent shares up 3% in Thursday trading. Toyota maintained its position as the world’s best-selling automaker for the sixth straight year, beating Volkswagen’s 9 million units and Hyundai’s 7.27 million units.
President Trump’s tariff regime threatened to derail the company’s U.S. business. Initial 25% levies on Japanese vehicles were later reduced to 15%. But Toyota’s strategy turned potential disaster into opportunity.
U.S. sales climbed 7.3% to 2.93 million units. The secret? Hybrids and local manufacturing.
Hybrid Strategy Pays Off
Toyota’s hybrid lineup carried the company through choppy waters. The RAV4 and Prius models drove demand in the U.S. market. Hybrids now account for 42% of the company’s global sales.
Electric vehicles made up just 1.9% of sales. Toyota bet on transitional technology while competitors rushed into full electrification. That gamble paid off.
The company exported 14.2% more vehicles from Japan to the U.S. The RAV4 SUV remained a bestseller. But manufacturing strategy made the real difference.
Only 20% of Toyota’s U.S. sales relied on imports. Hyundai, by comparison, imported 60% of vehicles sold in America during 2025. This gave Toyota pricing flexibility competitors couldn’t match.
The company absorbed tariff costs instead of passing them to customers. Rivals didn’t have that option.
Financial Performance Despite Headwinds
Tariffs will cost Toyota an estimated $9.7 billion in the fiscal year ending March 2026. That’s a heavy hit. But the company still raised its full-year operating profit forecast.
Cost reductions and strong international demand offset U.S. tariff pressure. Toyota reports fiscal third-quarter earnings on February 6. Analysts expect operating profits to jump nearly 30% year-over-year.
Hyundai told a different story. The South Korean automaker grew revenue over 6% in 2025. But operating profit fell 19.5%. U.S. tariffs cost Hyundai 4.1 trillion won.
Trump threatened Monday to raise tariffs on South Korean vehicles back to 25%. Hyundai shares dropped nearly 5% on the news. The company is racing to boost domestic production at Georgia facilities from 40% to 80% by 2030.
Toyota also posted a 0.2% increase in China sales. That’s the first growth in four years despite fierce competition from domestic EV makers.
The U.S. and Japan markets drove more than 40% of total sales. These regions remain central to Toyota’s global strategy. The combination of hybrid technology and local production proved unbeatable in 2025.
The post Toyota (TM) Stock: World’s Top Automaker Crown Retained for Sixth Year appeared first on Blockonomi.
Toyota Motor posted record 2025 sales of 10.5 million Toyota and Lexus vehicles, a 3.7% increase from 2024, maintaining its sixth consecutive year as the world’s top-selling automaker.
U.S. market sales surged 7.3% to 2.93 million units, fueled by hybrid vehicles like the RAV4 and Prius, which now represent 42% of global sales.
The automaker absorbed an estimated $9.7 billion in tariff costs rather than raising prices, with only 20% of U.S. sales coming from imports.
Toyota raised its full-year operating profit forecast despite tariff pressures, with analysts projecting a 30% operating profit rebound in fiscal Q3 results due February 6.
Shares climbed 3% following the announcement as the company’s manufacturing strategy and hybrid focus outperformed competitors like Hyundai, which saw operating profits drop 19.5%.
Toyota Motor Corporation delivered a masterclass in navigating tariff uncertainty. The automaker reported record sales of 10.5 million vehicles for its Toyota and Lexus brands in 2025, marking a 3.7% jump from the previous year.
Toyota powered to record sales in 2025 even as Trump's tariffs overshadowed the auto industry.https://t.co/5ZkNuqcfjx pic.twitter.com/NhQ5giuCnL
— Nikkei Asia (@NikkeiAsia) January 29, 2026
The announcement sent shares up 3% in Thursday trading. Toyota maintained its position as the world’s best-selling automaker for the sixth straight year, beating Volkswagen’s 9 million units and Hyundai’s 7.27 million units.
President Trump’s tariff regime threatened to derail the company’s U.S. business. Initial 25% levies on Japanese vehicles were later reduced to 15%. But Toyota’s strategy turned potential disaster into opportunity.
U.S. sales climbed 7.3% to 2.93 million units. The secret? Hybrids and local manufacturing.
Hybrid Strategy Pays Off
Toyota’s hybrid lineup carried the company through choppy waters. The RAV4 and Prius models drove demand in the U.S. market. Hybrids now account for 42% of the company’s global sales.
Electric vehicles made up just 1.9% of sales. Toyota bet on transitional technology while competitors rushed into full electrification. That gamble paid off.
The company exported 14.2% more vehicles from Japan to the U.S. The RAV4 SUV remained a bestseller. But manufacturing strategy made the real difference.
Only 20% of Toyota’s U.S. sales relied on imports. Hyundai, by comparison, imported 60% of vehicles sold in America during 2025. This gave Toyota pricing flexibility competitors couldn’t match.
The company absorbed tariff costs instead of passing them to customers. Rivals didn’t have that option.
Financial Performance Despite Headwinds
Tariffs will cost Toyota an estimated $9.7 billion in the fiscal year ending March 2026. That’s a heavy hit. But the company still raised its full-year operating profit forecast.
Cost reductions and strong international demand offset U.S. tariff pressure. Toyota reports fiscal third-quarter earnings on February 6. Analysts expect operating profits to jump nearly 30% year-over-year.
Hyundai told a different story. The South Korean automaker grew revenue over 6% in 2025. But operating profit fell 19.5%. U.S. tariffs cost Hyundai 4.1 trillion won.
Trump threatened Monday to raise tariffs on South Korean vehicles back to 25%. Hyundai shares dropped nearly 5% on the news. The company is racing to boost domestic production at Georgia facilities from 40% to 80% by 2030.
Toyota also posted a 0.2% increase in China sales. That’s the first growth in four years despite fierce competition from domestic EV makers.
The U.S. and Japan markets drove more than 40% of total sales. These regions remain central to Toyota’s global strategy. The combination of hybrid technology and local production proved unbeatable in 2025.
The post Toyota (TM) Stock: World’s Top Automaker Crown Retained for Sixth Year appeared first on Blockonomi.
Tesla (TSLA) Stock: Musk Links xAI and Tesla with $2 Billion AI Power Play
TLDR
Tesla finalizes $2 billion investment in Elon Musk’s xAI artificial intelligence company via Series E Preferred Stock purchase
Model S and Model X production ending to free factory space for Optimus humanoid robot manufacturing
Energy storage division posted record $3.84 billion Q4 revenue, crushing analyst estimates by 11%
Capital expenditures jumping to $20 billion-plus in 2026 from $8.5 billion spent in 2025
Cybercab robotaxi production schedule unchanged for 2026 rollout despite past delays
Tesla completed a $2 billion investment in xAI, the artificial intelligence startup controlled by CEO Elon Musk. The agreement closed January 16, 2026, with Tesla acquiring xAI Series E Preferred Stock.
The investment creates formal ties between two Musk enterprises. Tesla gains access to xAI’s advanced AI technology while xAI benefits from Tesla’s computational resources and vehicle data. The companies plan ongoing AI collaboration.
Tesla’s transition from pure electric vehicle maker to AI company drives its $1.5 trillion market value. Investors want proof this strategy delivers results beyond traditional car sales.
The automaker maintained its Cybercab robotaxi production schedule for 2026. Musk said fully autonomous vehicles should operate in 25% to 50% of U.S. states by December.
Previous robotaxi predictions haven’t materialized. Musk initially projected service reaching half the U.S. population by end of 2025. He later revised that to eight to ten major cities. Tesla currently runs limited robotaxi operations only in Austin, Texas.
Legacy Vehicles Getting Axed
Tesla will stop making Model S sedans and Model X SUVs. These premium vehicles helped build Tesla’s brand but now represent a tiny revenue slice. The factory lines will produce Optimus humanoid robots instead.
This production shift reflects changing priorities. Tesla wants investors betting on autonomous driving software and robotaxi income rather than traditional vehicle sales.
Revenue fell 3% to $94.83 billion in 2025, marking Tesla’s first annual decline. The automotive business faces pressure from rivals launching competitive models at lower price points. The federal EV tax credit disappeared. Musk’s political activities have alienated certain customer groups.
Tesla defended market share through discounting and introducing cheaper trim levels. Analysts forecast 1.77 million deliveries in 2026, up 8.2% from 2025.
Fourth-quarter adjusted earnings reached 50 cents per share, beating the 45-cent Wall Street consensus. Net income plunged 61% to $840 million.
Margins Improve Despite Headwinds
Automotive gross margin excluding regulatory credits hit 17.9%, up from 13.6% one year earlier. This beat analyst expectations of 14.3%. The margin expansion occurred despite falling revenue and heavy discounting.
Energy storage emerged as a growth driver. The segment generated $3.84 billion in Q4, up 25.5% year-over-year. This exceeded analyst projections of $3.46 billion. Utilities purchasing grid-scale batteries for renewable energy support fueled demand.
CFO Vaibhav Taneja said capital spending will exceed $20 billion in 2026. That’s more than double the $8.5 billion invested during 2025. Funds will support Cybercab production, humanoid robots, Semi trucks, and Roadster sports cars.
Shares rose 3.5% after-hours before pulling back to 1.8% gains after spending details emerged.
Musk warned about potential memory chip shortages hampering Tesla’s plans. He floated building a chip fabrication facility. AI infrastructure buildout by tech companies consumed available chip supply, pushing prices higher.
Optimus robot volume production won’t arrive until late 2026. Initial Cybercab and Optimus manufacturing will ramp slowly.
The Cybercab design lacks steering wheels and pedals, conflicting with current federal safety standards. Musk hasn’t provided specific dates for regulatory approval or widespread unsupervised Full Self-Driving deployment.
Musk’s $878 billion pay package, tied to performance milestones, reinforced his commitment to Tesla among other business interests. Tesla stock gained 11% in 2025.
The post Tesla (TSLA) Stock: Musk Links xAI and Tesla with $2 Billion AI Power Play appeared first on Blockonomi.
Tesla finalizes $2 billion investment in Elon Musk’s xAI artificial intelligence company via Series E Preferred Stock purchase
Model S and Model X production ending to free factory space for Optimus humanoid robot manufacturing
Energy storage division posted record $3.84 billion Q4 revenue, crushing analyst estimates by 11%
Capital expenditures jumping to $20 billion-plus in 2026 from $8.5 billion spent in 2025
Cybercab robotaxi production schedule unchanged for 2026 rollout despite past delays
Tesla completed a $2 billion investment in xAI, the artificial intelligence startup controlled by CEO Elon Musk. The agreement closed January 16, 2026, with Tesla acquiring xAI Series E Preferred Stock.
The investment creates formal ties between two Musk enterprises. Tesla gains access to xAI’s advanced AI technology while xAI benefits from Tesla’s computational resources and vehicle data. The companies plan ongoing AI collaboration.
Tesla’s transition from pure electric vehicle maker to AI company drives its $1.5 trillion market value. Investors want proof this strategy delivers results beyond traditional car sales.
The automaker maintained its Cybercab robotaxi production schedule for 2026. Musk said fully autonomous vehicles should operate in 25% to 50% of U.S. states by December.
Previous robotaxi predictions haven’t materialized. Musk initially projected service reaching half the U.S. population by end of 2025. He later revised that to eight to ten major cities. Tesla currently runs limited robotaxi operations only in Austin, Texas.
Legacy Vehicles Getting Axed
Tesla will stop making Model S sedans and Model X SUVs. These premium vehicles helped build Tesla’s brand but now represent a tiny revenue slice. The factory lines will produce Optimus humanoid robots instead.
This production shift reflects changing priorities. Tesla wants investors betting on autonomous driving software and robotaxi income rather than traditional vehicle sales.
Revenue fell 3% to $94.83 billion in 2025, marking Tesla’s first annual decline. The automotive business faces pressure from rivals launching competitive models at lower price points. The federal EV tax credit disappeared. Musk’s political activities have alienated certain customer groups.
Tesla defended market share through discounting and introducing cheaper trim levels. Analysts forecast 1.77 million deliveries in 2026, up 8.2% from 2025.
Fourth-quarter adjusted earnings reached 50 cents per share, beating the 45-cent Wall Street consensus. Net income plunged 61% to $840 million.
Margins Improve Despite Headwinds
Automotive gross margin excluding regulatory credits hit 17.9%, up from 13.6% one year earlier. This beat analyst expectations of 14.3%. The margin expansion occurred despite falling revenue and heavy discounting.
Energy storage emerged as a growth driver. The segment generated $3.84 billion in Q4, up 25.5% year-over-year. This exceeded analyst projections of $3.46 billion. Utilities purchasing grid-scale batteries for renewable energy support fueled demand.
CFO Vaibhav Taneja said capital spending will exceed $20 billion in 2026. That’s more than double the $8.5 billion invested during 2025. Funds will support Cybercab production, humanoid robots, Semi trucks, and Roadster sports cars.
Shares rose 3.5% after-hours before pulling back to 1.8% gains after spending details emerged.
Musk warned about potential memory chip shortages hampering Tesla’s plans. He floated building a chip fabrication facility. AI infrastructure buildout by tech companies consumed available chip supply, pushing prices higher.
Optimus robot volume production won’t arrive until late 2026. Initial Cybercab and Optimus manufacturing will ramp slowly.
The Cybercab design lacks steering wheels and pedals, conflicting with current federal safety standards. Musk hasn’t provided specific dates for regulatory approval or widespread unsupervised Full Self-Driving deployment.
Musk’s $878 billion pay package, tied to performance milestones, reinforced his commitment to Tesla among other business interests. Tesla stock gained 11% in 2025.
The post Tesla (TSLA) Stock: Musk Links xAI and Tesla with $2 Billion AI Power Play appeared first on Blockonomi.
IBM Stock Jumps as AI Business Powers Blowout Quarter
TLDR
IBM reported Q4 2025 revenue of $19.69 billion, beating analyst projections by $460 million
Artificial intelligence book of business topped $12.5 billion with consulting segment recording its largest GenAI quarter
Software revenue climbed 14% to $9 billion while infrastructure jumped 21% to $5.1 billion
Free cash flow reached $14.7 billion for 2025, the strongest annual performance in over ten years
Shares rose 8% following earnings announcement and 2026 guidance calling for continued growth
IBM just dropped earnings that caught everyone off guard. The company posted fourth-quarter revenue of $19.69 billion on January 28, 2026, sailing past the $19.23 billion estimate.
$IBM (International Business Machines) #earnings are out: pic.twitter.com/uWUofjKlsk
— The Earnings Correspondent (@earnings_guy) January 28, 2026
Earnings per share came in at $4.52 adjusted. Analysts had expected $4.32. That’s a solid beat on both the top and bottom lines.
Net income nearly doubled to $5.6 billion from $2.92 billion in the year-ago period. For the full year, IBM generated revenue of $67.5 billion, up 6% from 2024.
The real story was cash generation. IBM produced $14.7 billion in free cash flow during 2025, up 16% and the best showing in more than a decade.
CEO Arvind Krishna pointed to the company’s artificial intelligence momentum. The GenAI book of business now stands at more than $12.5 billion. “This capped a strong 2025 for IBM where we exceeded expectations for revenue, profit and free cash flow,” Krishna said.
Software and Infrastructure Lead the Charge
Software delivered the quarter’s strongest performance. Revenue grew 14% to $9 billion in Q4. Growth accelerated to 11% with over 7 percentage points from organic expansion.
Annual recurring revenue reached $23.6 billion in software. That’s more than $2 billion higher than the end of 2024. Data offerings grew 19% while automation solutions jumped 14%.
Infrastructure surprised everyone. Revenue increased 21% to $5.1 billion. IBM Z mainframe systems grew 67% year-over-year as customers adopted z17 systems with built-in AI capabilities.
Consulting turned things around after a weak start to 2025. Q4 revenue hit $5.3 billion, up 1% year-over-year. Full-year consulting revenue totaled $21.1 billion.
The consulting team booked over $2 billion in GenAI business during Q4 alone. Total inception-to-date GenAI bookings in consulting now exceed $10.5 billion. The consulting backlog stands at $32 billion, up 2%.
Strong Guidance Points to Continued Growth
IBM expects 2026 revenue growth to exceed 5% at constant currency. Software is projected to accelerate to 10% growth, driven by organic initiatives.
Operating pre-tax income margin should expand by about a point. Free cash flow is expected to increase by roughly $1 billion year-over-year.
Krishna revealed IBM is on track to deliver its first large-scale quantum computer by 2029. This positions the company in quantum computing alongside its AI push.
The board approved a dividend of $1.68 per share, payable March 10. This will mark 110 consecutive years of quarterly dividends.
IBM stock jumped 8% following the earnings release. Adjusted EBITDA margin expanded by about 230 basis points for the year. The company achieved $4.5 billion in productivity savings at the 2025 exit run rate.
Red Hat products contributed to software gains. The hybrid cloud category grew 8% year-over-year, aligning with IBM’s strategy as a software-led hybrid cloud and AI platform company.
The post IBM Stock Jumps as AI Business Powers Blowout Quarter appeared first on Blockonomi.
IBM reported Q4 2025 revenue of $19.69 billion, beating analyst projections by $460 million
Artificial intelligence book of business topped $12.5 billion with consulting segment recording its largest GenAI quarter
Software revenue climbed 14% to $9 billion while infrastructure jumped 21% to $5.1 billion
Free cash flow reached $14.7 billion for 2025, the strongest annual performance in over ten years
Shares rose 8% following earnings announcement and 2026 guidance calling for continued growth
IBM just dropped earnings that caught everyone off guard. The company posted fourth-quarter revenue of $19.69 billion on January 28, 2026, sailing past the $19.23 billion estimate.
$IBM (International Business Machines) #earnings are out: pic.twitter.com/uWUofjKlsk
— The Earnings Correspondent (@earnings_guy) January 28, 2026
Earnings per share came in at $4.52 adjusted. Analysts had expected $4.32. That’s a solid beat on both the top and bottom lines.
Net income nearly doubled to $5.6 billion from $2.92 billion in the year-ago period. For the full year, IBM generated revenue of $67.5 billion, up 6% from 2024.
The real story was cash generation. IBM produced $14.7 billion in free cash flow during 2025, up 16% and the best showing in more than a decade.
CEO Arvind Krishna pointed to the company’s artificial intelligence momentum. The GenAI book of business now stands at more than $12.5 billion. “This capped a strong 2025 for IBM where we exceeded expectations for revenue, profit and free cash flow,” Krishna said.
Software and Infrastructure Lead the Charge
Software delivered the quarter’s strongest performance. Revenue grew 14% to $9 billion in Q4. Growth accelerated to 11% with over 7 percentage points from organic expansion.
Annual recurring revenue reached $23.6 billion in software. That’s more than $2 billion higher than the end of 2024. Data offerings grew 19% while automation solutions jumped 14%.
Infrastructure surprised everyone. Revenue increased 21% to $5.1 billion. IBM Z mainframe systems grew 67% year-over-year as customers adopted z17 systems with built-in AI capabilities.
Consulting turned things around after a weak start to 2025. Q4 revenue hit $5.3 billion, up 1% year-over-year. Full-year consulting revenue totaled $21.1 billion.
The consulting team booked over $2 billion in GenAI business during Q4 alone. Total inception-to-date GenAI bookings in consulting now exceed $10.5 billion. The consulting backlog stands at $32 billion, up 2%.
Strong Guidance Points to Continued Growth
IBM expects 2026 revenue growth to exceed 5% at constant currency. Software is projected to accelerate to 10% growth, driven by organic initiatives.
Operating pre-tax income margin should expand by about a point. Free cash flow is expected to increase by roughly $1 billion year-over-year.
Krishna revealed IBM is on track to deliver its first large-scale quantum computer by 2029. This positions the company in quantum computing alongside its AI push.
The board approved a dividend of $1.68 per share, payable March 10. This will mark 110 consecutive years of quarterly dividends.
IBM stock jumped 8% following the earnings release. Adjusted EBITDA margin expanded by about 230 basis points for the year. The company achieved $4.5 billion in productivity savings at the 2025 exit run rate.
Red Hat products contributed to software gains. The hybrid cloud category grew 8% year-over-year, aligning with IBM’s strategy as a software-led hybrid cloud and AI platform company.
The post IBM Stock Jumps as AI Business Powers Blowout Quarter appeared first on Blockonomi.
Palantir (PLTR) Stock: Why Analysts See 42% Upside After Recent Drop
TLDR
Citi analyst sets $235 price target on Palantir, forecasting 70-80% revenue growth in 2026
U.S. commercial segment revenue surged 121% in Q3 as AI platform gains enterprise traction
PhillipCapital initiates buy rating at $208, arguing stock undervalued versus historical averages
Company backlog of $2.6 billion up 65% provides visibility into future revenue
Stock trades at 170x forward P/E, down from 309x peak in October
Palantir Technologies shares dropped 17% in three months. Now two analysts say the decline created opportunity.
Tyler Radke at Citi raised his price target to $235. That implies 42% upside from Tuesday’s close.
Radke thinks standard valuation models don’t apply to Palantir anymore. The company is growing too fast while improving margins.
He expects government revenue to jump 51% this year. Defense budgets are expanding and agencies need IT modernization.
Total revenue could grow 70-80% in 2026, Radke predicts. The Artificial Intelligence Platform is driving demand across sectors.
Commercial Business Powers Growth
Third quarter results show the momentum. Revenue climbed 63% year-over-year to $725.5 million.
The U.S. commercial segment led the way. Sales jumped 121% compared to last year and 29% from the prior quarter.
This business now accounts for 34% of total revenue. AIP adoption is accelerating among enterprise customers.
Government agencies are starting to use the platform too. They saw commercial success and want similar results.
Remaining performance obligations reached $2.6 billion, up 65%. These contracted sales will convert to revenue over time.
Management raised guidance for the year. They expect revenue of $4.4 billion, representing 53% growth.
U.S. commercial should hit $1.43 billion for 104% expansion. The business is outpacing earlier projections.
Valuation Looks Better
Paul Chew at PhillipCapital started coverage with a buy rating. His $208 target suggests 32% upside.
Chew compares Palantir to its own history rather than peers. By this measure, the stock looks cheaper.
Forward P/E dropped from 309x in October to 170x today. That’s below the one-year average of 190x.
The AI selloff pushed valuations down across the sector. Palantir got caught in the broader decline.
Chew notes the company has captured just 2.4% of its $119 billion addressable market. The AI software space is growing over 25% annually.
He projects $4.2 billion in 2025 revenue for 47% growth. Net profit should nearly double this year.
Commercial revenue will grow faster than government. The segments should increase 51% and 43% respectively.
Palantir expanded from 60 industry sectors in 2021 to 90 in 2024. Each new vertical adds revenue potential.
The company posted a Rule of 40 score of 114% in Q3. This metric combines growth rate and profit margin.
Most analysts remain neutral on the stock. Consensus shows six buys, ten holds, and two sells.
The average price target is $189.94 for 21% upside. Both Radke and Chew sit well above this level.
Palantir has gained 2,190% over three years. The stock experienced at least ten drawdowns of 20% or more during that period.
Both analysts think the latest pullback doesn’t reflect the business fundamentals. Growth is accelerating while margins expand.
The defense spending cycle and AI adoption could drive shares higher. Management keeps raising guidance as demand exceeds expectations.
The post Palantir (PLTR) Stock: Why Analysts See 42% Upside After Recent Drop appeared first on Blockonomi.
Citi analyst sets $235 price target on Palantir, forecasting 70-80% revenue growth in 2026
U.S. commercial segment revenue surged 121% in Q3 as AI platform gains enterprise traction
PhillipCapital initiates buy rating at $208, arguing stock undervalued versus historical averages
Company backlog of $2.6 billion up 65% provides visibility into future revenue
Stock trades at 170x forward P/E, down from 309x peak in October
Palantir Technologies shares dropped 17% in three months. Now two analysts say the decline created opportunity.
Tyler Radke at Citi raised his price target to $235. That implies 42% upside from Tuesday’s close.
Radke thinks standard valuation models don’t apply to Palantir anymore. The company is growing too fast while improving margins.
He expects government revenue to jump 51% this year. Defense budgets are expanding and agencies need IT modernization.
Total revenue could grow 70-80% in 2026, Radke predicts. The Artificial Intelligence Platform is driving demand across sectors.
Commercial Business Powers Growth
Third quarter results show the momentum. Revenue climbed 63% year-over-year to $725.5 million.
The U.S. commercial segment led the way. Sales jumped 121% compared to last year and 29% from the prior quarter.
This business now accounts for 34% of total revenue. AIP adoption is accelerating among enterprise customers.
Government agencies are starting to use the platform too. They saw commercial success and want similar results.
Remaining performance obligations reached $2.6 billion, up 65%. These contracted sales will convert to revenue over time.
Management raised guidance for the year. They expect revenue of $4.4 billion, representing 53% growth.
U.S. commercial should hit $1.43 billion for 104% expansion. The business is outpacing earlier projections.
Valuation Looks Better
Paul Chew at PhillipCapital started coverage with a buy rating. His $208 target suggests 32% upside.
Chew compares Palantir to its own history rather than peers. By this measure, the stock looks cheaper.
Forward P/E dropped from 309x in October to 170x today. That’s below the one-year average of 190x.
The AI selloff pushed valuations down across the sector. Palantir got caught in the broader decline.
Chew notes the company has captured just 2.4% of its $119 billion addressable market. The AI software space is growing over 25% annually.
He projects $4.2 billion in 2025 revenue for 47% growth. Net profit should nearly double this year.
Commercial revenue will grow faster than government. The segments should increase 51% and 43% respectively.
Palantir expanded from 60 industry sectors in 2021 to 90 in 2024. Each new vertical adds revenue potential.
The company posted a Rule of 40 score of 114% in Q3. This metric combines growth rate and profit margin.
Most analysts remain neutral on the stock. Consensus shows six buys, ten holds, and two sells.
The average price target is $189.94 for 21% upside. Both Radke and Chew sit well above this level.
Palantir has gained 2,190% over three years. The stock experienced at least ten drawdowns of 20% or more during that period.
Both analysts think the latest pullback doesn’t reflect the business fundamentals. Growth is accelerating while margins expand.
The defense spending cycle and AI adoption could drive shares higher. Management keeps raising guidance as demand exceeds expectations.
The post Palantir (PLTR) Stock: Why Analysts See 42% Upside After Recent Drop appeared first on Blockonomi.
Nokia (NOK) Stock: Why Shares Tanked Despite Strong AI Revenue Growth
TLDR
Nokia reported Q4 2025 revenue of €6.1 billion, up 3% year-over-year, driven by AI and cloud infrastructure demand
Comparable operating profit of €1.06 billion missed prior year’s €1.09 billion as margins compressed to 17.3%
Network Infrastructure jumped 19% while Mobile Networks fell 1.7%, showing the company’s ongoing business transformation
2026 operating profit guidance of €2.0-€2.5 billion fell 5% short of analyst consensus at €2.37 billion
Stock declined 5.8% in early European trading as investors digested the weaker-than-expected outlook
Nokia posted solid fourth quarter revenue Thursday but disappointed Wall Street with conservative 2026 guidance, sending shares down 5.8% in early trading.
$NOK
NOKIA CORP#earnings results: pic.twitter.com/vwFY23HQNi
— Earnings Today (@EarningsToday) January 29, 2026
The Finnish equipment maker reported Q4 revenue of €6.1 billion, matching analyst forecasts. Year-over-year growth hit 3% on a constant currency basis, with AI and cloud customers driving the expansion.
CEO Justin Hotard’s pivot toward data center markets delivered results. The Network Infrastructure division grew 19% as demand for AI infrastructure accelerated. Optical Networks, critical for data center connectivity, posted 17% growth within that segment.
“Order intake was strong across Optical and IP Networks, with book-to-bill remaining above one, driven by demand from AI & Cloud customers,” Hotard stated.
Comparable operating profit reached €1.06 billion for the quarter, down from €1.09 billion a year earlier. Operating margin fell 90 basis points to 17.3%. Nokia attributed the compression to growth investments, including integrating Infinera, its recent optical networking acquisition.
The company reported €0.16 in comparable diluted EPS and €0.10 in reported diluted EPS. Net cash stood at €3.4 billion at quarter end.
Mobile Business Stabilizes Amid Decline
Mobile Networks revenue dropped 1.7% as North American carrier spending weakened. Growth in the Middle East, Japan, and Indonesia partially offset the decline.
The unit’s gross margin improved to 40.1% from 37.3%, indicating stabilization despite revenue pressure. For full-year 2025, Nokia achieved 2% constant currency revenue growth with €2.0 billion in comparable operating profit and €1.5 billion in free cash flow.
Group comparable net profit hit €880 million, beating the €834 million consensus. The company took full ownership of its China joint venture during the quarter for €0.5 billion in cash.
2026 Guidance Triggers Selloff
Nokia’s 2026 outlook sparked the stock decline. The company guided for €2.0-€2.5 billion in comparable operating profit. The €2.25 billion midpoint trails consensus by roughly 5%.
J.P. Morgan analysts expect “mid-single digit downgrades to consensus” following the guidance miss.
Nokia projects 6-8% Network Infrastructure growth in 2026, aligning with long-term targets. However, management warned Q1 2026 revenue would decline more than seasonal norms, with operating margin rising only slightly year-over-year.
The board proposed €0.14 per share dividend authorization for 2025. Chair Sari Baldauf will step down, with Timo Ihamuotila nominated as replacement. Meredith Whittaker from Signal Technology Foundation received a board nomination.
The post Nokia (NOK) Stock: Why Shares Tanked Despite Strong AI Revenue Growth appeared first on Blockonomi.
Nokia reported Q4 2025 revenue of €6.1 billion, up 3% year-over-year, driven by AI and cloud infrastructure demand
Comparable operating profit of €1.06 billion missed prior year’s €1.09 billion as margins compressed to 17.3%
Network Infrastructure jumped 19% while Mobile Networks fell 1.7%, showing the company’s ongoing business transformation
2026 operating profit guidance of €2.0-€2.5 billion fell 5% short of analyst consensus at €2.37 billion
Stock declined 5.8% in early European trading as investors digested the weaker-than-expected outlook
Nokia posted solid fourth quarter revenue Thursday but disappointed Wall Street with conservative 2026 guidance, sending shares down 5.8% in early trading.
$NOK
NOKIA CORP#earnings results: pic.twitter.com/vwFY23HQNi
— Earnings Today (@EarningsToday) January 29, 2026
The Finnish equipment maker reported Q4 revenue of €6.1 billion, matching analyst forecasts. Year-over-year growth hit 3% on a constant currency basis, with AI and cloud customers driving the expansion.
CEO Justin Hotard’s pivot toward data center markets delivered results. The Network Infrastructure division grew 19% as demand for AI infrastructure accelerated. Optical Networks, critical for data center connectivity, posted 17% growth within that segment.
“Order intake was strong across Optical and IP Networks, with book-to-bill remaining above one, driven by demand from AI & Cloud customers,” Hotard stated.
Comparable operating profit reached €1.06 billion for the quarter, down from €1.09 billion a year earlier. Operating margin fell 90 basis points to 17.3%. Nokia attributed the compression to growth investments, including integrating Infinera, its recent optical networking acquisition.
The company reported €0.16 in comparable diluted EPS and €0.10 in reported diluted EPS. Net cash stood at €3.4 billion at quarter end.
Mobile Business Stabilizes Amid Decline
Mobile Networks revenue dropped 1.7% as North American carrier spending weakened. Growth in the Middle East, Japan, and Indonesia partially offset the decline.
The unit’s gross margin improved to 40.1% from 37.3%, indicating stabilization despite revenue pressure. For full-year 2025, Nokia achieved 2% constant currency revenue growth with €2.0 billion in comparable operating profit and €1.5 billion in free cash flow.
Group comparable net profit hit €880 million, beating the €834 million consensus. The company took full ownership of its China joint venture during the quarter for €0.5 billion in cash.
2026 Guidance Triggers Selloff
Nokia’s 2026 outlook sparked the stock decline. The company guided for €2.0-€2.5 billion in comparable operating profit. The €2.25 billion midpoint trails consensus by roughly 5%.
J.P. Morgan analysts expect “mid-single digit downgrades to consensus” following the guidance miss.
Nokia projects 6-8% Network Infrastructure growth in 2026, aligning with long-term targets. However, management warned Q1 2026 revenue would decline more than seasonal norms, with operating margin rising only slightly year-over-year.
The board proposed €0.14 per share dividend authorization for 2025. Chair Sari Baldauf will step down, with Timo Ihamuotila nominated as replacement. Meredith Whittaker from Signal Technology Foundation received a board nomination.
The post Nokia (NOK) Stock: Why Shares Tanked Despite Strong AI Revenue Growth appeared first on Blockonomi.
Carvana (CVNA) Stock Tumbles 14% on Short-Seller Fraud Claims
TLDR
Carvana (CVNA) shares plunged 14.2% Wednesday to $410.04 after Gotham City Research accused the company of overstating 2023-2024 earnings by over $1 billion
Short-seller alleges Carvana inflated profits through transactions with DriveTime and Bridgecrest, companies owned by CEO’s father Ernest Garcia II
Carvana rejected the claims as “inaccurate and intentionally misleading” and reaffirmed its February 18 earnings release date
The stock has risen 10,000% since December 2022 despite facing multiple short-seller attacks in recent months
Wednesday’s decline was Carvana’s second-worst trading day of the past year
Carvana stock got hammered Wednesday. The online used-car retailer closed at $410.04, down 14.2%.
Short-seller Gotham City Research triggered the selloff. The firm released a report claiming Carvana overstated earnings by more than $1 billion across 2023 and 2024.
That’s a massive allegation. Carvana reported total net income of approximately $550 million during those two years.
Gotham City claims Carvana inflated its numbers through questionable deals with related companies. The short-seller specifically targets DriveTime Automotive Group and Bridgecrest Acceptance Corp.
Both companies share a common owner: Ernest Garcia II. He’s Carvana’s biggest shareholder and the father of CEO Ernest Garcia III.
The report alleges Carvana is “far more dependent on related parties” than investors know. Gotham City published what it says are 2024 audited financials from DriveTime and Bridgecrest obtained through a Freedom of Information Act request.
Carvana Fights Back
Carvana wasted no time responding. The company issued a statement calling the report “inaccurate and intentionally misleading.”
Carvana insists all related party transactions are properly disclosed in its financial statements. The company also confirmed its February 18 earnings release remains on schedule.
This directly contradicts Gotham City’s claim that Carvana would delay its 10-K annual filing. That’s an important detail for investors watching closely.
History Repeating Itself
Short-sellers have been circling Carvana for months. This is just the latest attack on the company’s accounting practices.
Hindenburg Research took a short position in January 2025. That firm called Carvana’s turnaround a “mirage” built on unstable loans and accounting tricks.
Jim Chanos, one of Wall Street’s most famous short-sellers, also bet against Carvana. He accused the company of aggressive accounting to juice results.
Yet Carvana stock keeps defying the doubters. Shares have rocketed more than 10,000% since December 2022.
Back then, bankruptcy looked likely. The stock traded below $5 per share.
The Turnaround Story
Carvana pulled off a dramatic recovery. The company slashed costs in 2023 and renegotiated its debt with creditors.
That effort paid off big. Carvana joined the S&P 500 last month, a milestone for any company.
Tuesday, shares closed at $477. Wednesday’s drop erased those gains and then some.
The decline marked Carvana’s second-worst trading day in the past year. Shares hit their lowest level since early December.
Carvana will report 2025 earnings on February 18.
The post Carvana (CVNA) Stock Tumbles 14% on Short-Seller Fraud Claims appeared first on Blockonomi.
Carvana (CVNA) shares plunged 14.2% Wednesday to $410.04 after Gotham City Research accused the company of overstating 2023-2024 earnings by over $1 billion
Short-seller alleges Carvana inflated profits through transactions with DriveTime and Bridgecrest, companies owned by CEO’s father Ernest Garcia II
Carvana rejected the claims as “inaccurate and intentionally misleading” and reaffirmed its February 18 earnings release date
The stock has risen 10,000% since December 2022 despite facing multiple short-seller attacks in recent months
Wednesday’s decline was Carvana’s second-worst trading day of the past year
Carvana stock got hammered Wednesday. The online used-car retailer closed at $410.04, down 14.2%.
Short-seller Gotham City Research triggered the selloff. The firm released a report claiming Carvana overstated earnings by more than $1 billion across 2023 and 2024.
That’s a massive allegation. Carvana reported total net income of approximately $550 million during those two years.
Gotham City claims Carvana inflated its numbers through questionable deals with related companies. The short-seller specifically targets DriveTime Automotive Group and Bridgecrest Acceptance Corp.
Both companies share a common owner: Ernest Garcia II. He’s Carvana’s biggest shareholder and the father of CEO Ernest Garcia III.
The report alleges Carvana is “far more dependent on related parties” than investors know. Gotham City published what it says are 2024 audited financials from DriveTime and Bridgecrest obtained through a Freedom of Information Act request.
Carvana Fights Back
Carvana wasted no time responding. The company issued a statement calling the report “inaccurate and intentionally misleading.”
Carvana insists all related party transactions are properly disclosed in its financial statements. The company also confirmed its February 18 earnings release remains on schedule.
This directly contradicts Gotham City’s claim that Carvana would delay its 10-K annual filing. That’s an important detail for investors watching closely.
History Repeating Itself
Short-sellers have been circling Carvana for months. This is just the latest attack on the company’s accounting practices.
Hindenburg Research took a short position in January 2025. That firm called Carvana’s turnaround a “mirage” built on unstable loans and accounting tricks.
Jim Chanos, one of Wall Street’s most famous short-sellers, also bet against Carvana. He accused the company of aggressive accounting to juice results.
Yet Carvana stock keeps defying the doubters. Shares have rocketed more than 10,000% since December 2022.
Back then, bankruptcy looked likely. The stock traded below $5 per share.
The Turnaround Story
Carvana pulled off a dramatic recovery. The company slashed costs in 2023 and renegotiated its debt with creditors.
That effort paid off big. Carvana joined the S&P 500 last month, a milestone for any company.
Tuesday, shares closed at $477. Wednesday’s drop erased those gains and then some.
The decline marked Carvana’s second-worst trading day in the past year. Shares hit their lowest level since early December.
Carvana will report 2025 earnings on February 18.
The post Carvana (CVNA) Stock Tumbles 14% on Short-Seller Fraud Claims appeared first on Blockonomi.
Strive (ASST) Stock: Bitcoin Treasury Firm Wipes Out Most Debt After $225M Raise
TLDR
Strive paid off $110 million in debt from Semler Scientific acquisition, representing 92% of inherited liabilities
Company raised $225 million through preferred stock after seeing $600 million in investor demand
Purchased 334 Bitcoin at $89,851 average price, pushing total holdings to 13,132 BTC valued at $1.17 billion
ASST shares dropped 2.23% to $0.80, now down 92.4% from peak despite balance sheet improvements
Remaining $10 million debt scheduled for elimination within four months
Strive raised $225 million through a preferred stock offering and immediately put the cash to work eliminating debt and buying more Bitcoin.
The company announced Wednesday it retired $110 million of liabilities inherited from its January 13 acquisition of Semler Scientific. This wipes out 92% of the debt from that deal.
The debt payoff included $90 million in convertible notes exchanged for Variable Rate Series A Perpetual Preferred Stock trading as “SATA.” Strive also paid off a $20 million Coinbase credit facility completely.
Massive Demand Drives Upsized Offering
Strive originally planned to raise $150 million. Investor demand hit $600 million, forcing the company to increase the offering to $225 million.
The preferred shares work as long-duration equity financing. This lets Strive fund Bitcoin purchases without piling on more leverage.
After closing the offering, Strive bought 333.9 Bitcoin at an average price of $89,851 per coin. Total holdings now stand at 13,132 BTC.
That Bitcoin stash is worth roughly $1.17 billion at current prices. The holdings place Strive among the top 10 corporate Bitcoin treasury companies worldwide.
With the Coinbase loan paid off, all of Strive’s Bitcoin holdings are now unencumbered. The Vivek Ramaswamy-backed company plans to eliminate the remaining $10 million in debt over the next four months.
Strive reported a Bitcoin yield of 21.2% quarter-to-date. This measures how much Bitcoin exposure per common share has grown during the period.
Shares Drop Despite Progress
The market didn’t reward Strive’s debt reduction efforts. ASST shares fell 2.23% on Wednesday to close at $0.80.
The stock has crashed 92.4% from its $10.46 peak hit after announcing the Bitcoin treasury strategy. This shows the volatility tied to corporate crypto plays.
More than 190 publicly traded companies now hold Bitcoin on their balance sheets. Together they own about 1.134 million BTC, or 5.4% of total supply.
Michael Saylor’s Strategy dominates this space with nearly 63% of all corporate Bitcoin holdings. Strategy keeps buying despite tighter market conditions in recent months.
Corporate Bitcoin Treasury Trend Continues
The corporate Bitcoin treasury model exploded in popularity during 2024 and early 2025. Many companies saw share prices tumble later as investors questioned whether the strategy works long-term.
Strive finalized its Semler Scientific acquisition following a merger agreement reached in September. Semler operated as a Bitcoin treasury company before the transaction closed.
The preferred stock offering gave Strive the capital to clean up its balance sheet while expanding Bitcoin exposure. The company holds 13,132 BTC worth $1.17 billion with just $10 million in remaining debt.
The post Strive (ASST) Stock: Bitcoin Treasury Firm Wipes Out Most Debt After $225M Raise appeared first on Blockonomi.
Strive paid off $110 million in debt from Semler Scientific acquisition, representing 92% of inherited liabilities
Company raised $225 million through preferred stock after seeing $600 million in investor demand
Purchased 334 Bitcoin at $89,851 average price, pushing total holdings to 13,132 BTC valued at $1.17 billion
ASST shares dropped 2.23% to $0.80, now down 92.4% from peak despite balance sheet improvements
Remaining $10 million debt scheduled for elimination within four months
Strive raised $225 million through a preferred stock offering and immediately put the cash to work eliminating debt and buying more Bitcoin.
The company announced Wednesday it retired $110 million of liabilities inherited from its January 13 acquisition of Semler Scientific. This wipes out 92% of the debt from that deal.
The debt payoff included $90 million in convertible notes exchanged for Variable Rate Series A Perpetual Preferred Stock trading as “SATA.” Strive also paid off a $20 million Coinbase credit facility completely.
Massive Demand Drives Upsized Offering
Strive originally planned to raise $150 million. Investor demand hit $600 million, forcing the company to increase the offering to $225 million.
The preferred shares work as long-duration equity financing. This lets Strive fund Bitcoin purchases without piling on more leverage.
After closing the offering, Strive bought 333.9 Bitcoin at an average price of $89,851 per coin. Total holdings now stand at 13,132 BTC.
That Bitcoin stash is worth roughly $1.17 billion at current prices. The holdings place Strive among the top 10 corporate Bitcoin treasury companies worldwide.
With the Coinbase loan paid off, all of Strive’s Bitcoin holdings are now unencumbered. The Vivek Ramaswamy-backed company plans to eliminate the remaining $10 million in debt over the next four months.
Strive reported a Bitcoin yield of 21.2% quarter-to-date. This measures how much Bitcoin exposure per common share has grown during the period.
Shares Drop Despite Progress
The market didn’t reward Strive’s debt reduction efforts. ASST shares fell 2.23% on Wednesday to close at $0.80.
The stock has crashed 92.4% from its $10.46 peak hit after announcing the Bitcoin treasury strategy. This shows the volatility tied to corporate crypto plays.
More than 190 publicly traded companies now hold Bitcoin on their balance sheets. Together they own about 1.134 million BTC, or 5.4% of total supply.
Michael Saylor’s Strategy dominates this space with nearly 63% of all corporate Bitcoin holdings. Strategy keeps buying despite tighter market conditions in recent months.
Corporate Bitcoin Treasury Trend Continues
The corporate Bitcoin treasury model exploded in popularity during 2024 and early 2025. Many companies saw share prices tumble later as investors questioned whether the strategy works long-term.
Strive finalized its Semler Scientific acquisition following a merger agreement reached in September. Semler operated as a Bitcoin treasury company before the transaction closed.
The preferred stock offering gave Strive the capital to clean up its balance sheet while expanding Bitcoin exposure. The company holds 13,132 BTC worth $1.17 billion with just $10 million in remaining debt.
The post Strive (ASST) Stock: Bitcoin Treasury Firm Wipes Out Most Debt After $225M Raise appeared first on Blockonomi.
ServiceNow (NOW) Stock Falls Despite Earnings Beat and Raised Guidance
TLDR
ServiceNow shares declined over 2% after hours despite fourth-quarter earnings that surpassed analyst expectations across revenue and profit metrics.
The company guided 2026 subscription revenue to $15.53-$15.57 billion, beating the $15.21 billion Wall Street consensus estimate.
ServiceNow expanded AI partnerships with Anthropic and OpenAI to integrate chatbot technology across its platform.
A $5 billion share repurchase authorization was announced with an immediate $2 billion accelerated buyback planned.
The company closed its biggest acquisition, purchasing cybersecurity firm Armis for $7.75 billion.
ServiceNow stock dropped more than 2% in extended trading Wednesday. The decline came despite the company posting better-than-expected fourth-quarter results.
SERVICENOW $NOW JUST REPORTED Q4 2025 EARNINGS
Topline Performance
• Revenue: $3.57B Vs $3.53B Est
• Subscription Revenue: $3.47B
Profitability
• EPS: $0.38
• Adjusted EPS: $0.92 Vs $0.88 Est
• Net Income: $401M
Outlook
• Q1 Revenue Outlook: $3.65B To $3.655B
• FY… pic.twitter.com/QYzkUNltzQ
— WOLF (@WOLF_Financial) January 28, 2026
The enterprise software company reported Q4 revenue of $3.57 billion. That represented a 20.5% increase from the prior year and beat the $3.53 billion analyst estimate.
Adjusted earnings reached 92 cents per share. Wall Street had projected 88 cents per share.
The stock has faced headwinds recently. Shares tumbled 28% in 2025 and are down over 15% year-to-date.
Market observers cited stretched valuation metrics as a drag on the stock. Technical indicators and elevated options volatility also weighed on investor sentiment.
Strong Subscription Revenue Outlook Powered by AI
ServiceNow projects 2026 subscription revenue between $15.53 billion and $15.57 billion. The forecast topped the Street’s $15.21 billion expectation.
The company unveiled deeper integration plans with Anthropic and OpenAI. Claude models from Anthropic will be embedded more extensively into ServiceNow products.
Recent acquisitions are boosting growth projections. The Moveworks deal added roughly 100 basis points to the annual subscription revenue forecast.
ServiceNow also acquired security company Veza and sales platform Logik.ai. The acquisition spree aims to expand the company’s addressable market across industry workflows and security solutions.
First-quarter subscription revenue is expected between $3.65 billion and $3.66 billion. That exceeds the $3.57 billion analyst consensus.
Armis Acquisition and Buyback Program
The company completed its largest deal ever, acquiring Armis for $7.75 billion. The cybersecurity startup purchase marks a major bet on the security market.
ServiceNow’s board approved an additional $5 billion for share repurchases. Management plans to execute a $2 billion accelerated buyback immediately.
The aggressive M&A strategy has created pressure on the stock price. Analysts are recalibrating price targets given the current valuation multiples.
Despite the strong financial performance, investors remain cautious about the company’s premium trading levels. The combination of acquisition spending and high valuation has kept buyers on the sidelines.
ServiceNow’s remaining performance obligations increased during the quarter. Customer adoption of AI-powered products continues to accelerate across the platform.
The post ServiceNow (NOW) Stock Falls Despite Earnings Beat and Raised Guidance appeared first on Blockonomi.
ServiceNow shares declined over 2% after hours despite fourth-quarter earnings that surpassed analyst expectations across revenue and profit metrics.
The company guided 2026 subscription revenue to $15.53-$15.57 billion, beating the $15.21 billion Wall Street consensus estimate.
ServiceNow expanded AI partnerships with Anthropic and OpenAI to integrate chatbot technology across its platform.
A $5 billion share repurchase authorization was announced with an immediate $2 billion accelerated buyback planned.
The company closed its biggest acquisition, purchasing cybersecurity firm Armis for $7.75 billion.
ServiceNow stock dropped more than 2% in extended trading Wednesday. The decline came despite the company posting better-than-expected fourth-quarter results.
SERVICENOW $NOW JUST REPORTED Q4 2025 EARNINGS
Topline Performance
• Revenue: $3.57B Vs $3.53B Est
• Subscription Revenue: $3.47B
Profitability
• EPS: $0.38
• Adjusted EPS: $0.92 Vs $0.88 Est
• Net Income: $401M
Outlook
• Q1 Revenue Outlook: $3.65B To $3.655B
• FY… pic.twitter.com/QYzkUNltzQ
— WOLF (@WOLF_Financial) January 28, 2026
The enterprise software company reported Q4 revenue of $3.57 billion. That represented a 20.5% increase from the prior year and beat the $3.53 billion analyst estimate.
Adjusted earnings reached 92 cents per share. Wall Street had projected 88 cents per share.
The stock has faced headwinds recently. Shares tumbled 28% in 2025 and are down over 15% year-to-date.
Market observers cited stretched valuation metrics as a drag on the stock. Technical indicators and elevated options volatility also weighed on investor sentiment.
Strong Subscription Revenue Outlook Powered by AI
ServiceNow projects 2026 subscription revenue between $15.53 billion and $15.57 billion. The forecast topped the Street’s $15.21 billion expectation.
The company unveiled deeper integration plans with Anthropic and OpenAI. Claude models from Anthropic will be embedded more extensively into ServiceNow products.
Recent acquisitions are boosting growth projections. The Moveworks deal added roughly 100 basis points to the annual subscription revenue forecast.
ServiceNow also acquired security company Veza and sales platform Logik.ai. The acquisition spree aims to expand the company’s addressable market across industry workflows and security solutions.
First-quarter subscription revenue is expected between $3.65 billion and $3.66 billion. That exceeds the $3.57 billion analyst consensus.
Armis Acquisition and Buyback Program
The company completed its largest deal ever, acquiring Armis for $7.75 billion. The cybersecurity startup purchase marks a major bet on the security market.
ServiceNow’s board approved an additional $5 billion for share repurchases. Management plans to execute a $2 billion accelerated buyback immediately.
The aggressive M&A strategy has created pressure on the stock price. Analysts are recalibrating price targets given the current valuation multiples.
Despite the strong financial performance, investors remain cautious about the company’s premium trading levels. The combination of acquisition spending and high valuation has kept buyers on the sidelines.
ServiceNow’s remaining performance obligations increased during the quarter. Customer adoption of AI-powered products continues to accelerate across the platform.
The post ServiceNow (NOW) Stock Falls Despite Earnings Beat and Raised Guidance appeared first on Blockonomi.
Coinbase (COIN) Stock: Exchange Debuts Prediction Markets Nationwide via Kalshi Deal
TLDR
Coinbase partnered with Kalshi to offer prediction markets in every US state
Platform enables trading on sports outcomes, political events, and cultural happenings
Kalshi is federally regulated but faces state legal challenges over sports betting licenses
Launch positions Coinbase as an “everything exchange” with diverse trading options
Timing aligns with upcoming Super Bowl, giving users betting opportunities on major events
Coinbase unveiled prediction market trading across all 50 states on Wednesday. The feature launches through a collaboration with Kalshi, a prediction market operator regulated by federal authorities.
LATEST: Coinbase has expanded its prediction markets offering to all 50 US states through Kalshi, with users able to trade on outcomes across sports, politics, culture and more in USD or USDC. pic.twitter.com/68bHP7c9bk
— CoinMarketCap (@CoinMarketCap) January 29, 2026
Users can now trade on outcomes ranging from NFL games to presidential elections. The platform also covers cultural events, collectibles, and economic data releases.
Coinbase first announced the Kalshi partnership in December. The full nationwide rollout happened this week via an X post from the exchange.
The timing works well for Coinbase. The Super Bowl arrives in roughly one week, giving users a high-profile event to trade on right away.
Trading Real-World Events
Kalshi’s model uses yes-or-no contracts on specific outcomes. Traders pick a side and the contract price shows what the market thinks will happen.
Higher prices mean the crowd believes that outcome is more likely. Lower prices suggest skepticism from other traders.
The Commodity Futures Trading Commission regulates Kalshi at the federal level. This oversight allows the platform to operate as a derivatives exchange in the United States.
Coinbase acquired The Clearing Company last month. That purchase supports the exchange’s expansion into prediction markets and alternative trading products.
State Legal Battles
Kalshi faces lawsuits from at least four state governments. Massachusetts and Tennessee filed cases claiming the platform needs gaming licenses for sports betting.
The state actions continue despite Kalshi’s federal regulatory approval. Each state maintains separate gambling and gaming laws that may conflict with federal oversight.
Polymarket deals with similar legal pressure. Tennessee authorities took action against Polymarket over sports betting operations without state licenses.
Insider Trading Questions
Polymarket recently caught heat from Congress over potential insider trading. One user reportedly made over $400,000 betting on the capture of Venezuelan President Nicolás Maduro.
The user’s timing raised red flags with lawmakers. They questioned whether the trader had advance information about the operation.
Members of Congress demanded action on insider trading rules for political prediction markets. The incident highlighted gaps in oversight for these platforms.
The Everything Exchange Vision
Coinbase calls its expansion strategy the “everything exchange” approach. The company wants to offer stocks, crypto, tokenized assets, and now prediction markets under one roof.
Prediction market activity jumped over the past year. Platforms like Polymarket saw huge volume increases as users traded political and economic events.
These markets give real-time sentiment readings on current events. Some traders use them as data sources alongside traditional news and polling.
Coinbase brings its regulated infrastructure and existing user base to the prediction market space. The exchange could add liquidity and mainstream visibility to the sector.
The platform already serves millions of US customers for crypto trading. Those users now have access to Kalshi’s event contracts without opening separate accounts.
The post Coinbase (COIN) Stock: Exchange Debuts Prediction Markets Nationwide via Kalshi Deal appeared first on Blockonomi.
Coinbase partnered with Kalshi to offer prediction markets in every US state
Platform enables trading on sports outcomes, political events, and cultural happenings
Kalshi is federally regulated but faces state legal challenges over sports betting licenses
Launch positions Coinbase as an “everything exchange” with diverse trading options
Timing aligns with upcoming Super Bowl, giving users betting opportunities on major events
Coinbase unveiled prediction market trading across all 50 states on Wednesday. The feature launches through a collaboration with Kalshi, a prediction market operator regulated by federal authorities.
LATEST: Coinbase has expanded its prediction markets offering to all 50 US states through Kalshi, with users able to trade on outcomes across sports, politics, culture and more in USD or USDC. pic.twitter.com/68bHP7c9bk
— CoinMarketCap (@CoinMarketCap) January 29, 2026
Users can now trade on outcomes ranging from NFL games to presidential elections. The platform also covers cultural events, collectibles, and economic data releases.
Coinbase first announced the Kalshi partnership in December. The full nationwide rollout happened this week via an X post from the exchange.
The timing works well for Coinbase. The Super Bowl arrives in roughly one week, giving users a high-profile event to trade on right away.
Trading Real-World Events
Kalshi’s model uses yes-or-no contracts on specific outcomes. Traders pick a side and the contract price shows what the market thinks will happen.
Higher prices mean the crowd believes that outcome is more likely. Lower prices suggest skepticism from other traders.
The Commodity Futures Trading Commission regulates Kalshi at the federal level. This oversight allows the platform to operate as a derivatives exchange in the United States.
Coinbase acquired The Clearing Company last month. That purchase supports the exchange’s expansion into prediction markets and alternative trading products.
State Legal Battles
Kalshi faces lawsuits from at least four state governments. Massachusetts and Tennessee filed cases claiming the platform needs gaming licenses for sports betting.
The state actions continue despite Kalshi’s federal regulatory approval. Each state maintains separate gambling and gaming laws that may conflict with federal oversight.
Polymarket deals with similar legal pressure. Tennessee authorities took action against Polymarket over sports betting operations without state licenses.
Insider Trading Questions
Polymarket recently caught heat from Congress over potential insider trading. One user reportedly made over $400,000 betting on the capture of Venezuelan President Nicolás Maduro.
The user’s timing raised red flags with lawmakers. They questioned whether the trader had advance information about the operation.
Members of Congress demanded action on insider trading rules for political prediction markets. The incident highlighted gaps in oversight for these platforms.
The Everything Exchange Vision
Coinbase calls its expansion strategy the “everything exchange” approach. The company wants to offer stocks, crypto, tokenized assets, and now prediction markets under one roof.
Prediction market activity jumped over the past year. Platforms like Polymarket saw huge volume increases as users traded political and economic events.
These markets give real-time sentiment readings on current events. Some traders use them as data sources alongside traditional news and polling.
Coinbase brings its regulated infrastructure and existing user base to the prediction market space. The exchange could add liquidity and mainstream visibility to the sector.
The platform already serves millions of US customers for crypto trading. Those users now have access to Kalshi’s event contracts without opening separate accounts.
The post Coinbase (COIN) Stock: Exchange Debuts Prediction Markets Nationwide via Kalshi Deal appeared first on Blockonomi.
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