Meta is reportedly planning to sell its excess computing power to external clients, a move that could diversify its revenue streams beyond its core advertising business. The announcement led to a significant jump in Meta's stock price, with investors seeking ways for the company to monetize its substantial investments in AI and data centers.
Kohl's stock jumped 20% after reporting its best comparable sales performance in four years, with CEO Michael Bender saying the company is 'knocking on the door of growth'
Apple reported fiscal Q2 2026 revenue of $111.2B, up 17% year-over-year and beating estimates, with EPS of $2.01. The company announced CEO Tim Cook will transition to executive chairman on Sept. 1, with John Ternus taking over as CEO. Stock jumped 4% after-hours to around $282. All product categories beat expectations, with iPhone sales up nearly 22% to a March quarter record. Services revenue hit an all-time high. Apple authorized a $100B buyback program and raised dividend 4%.
Reddit reported Q1 EPS of $1.01 vs. 58 cents expected, with revenue of $663 million vs. $611 million expected, jumping 69% YoY. Net income soared to $204 million from $26 million a year ago. Daily active unique users rose 17% to 126.8 million, beating estimates. The company issued optimistic Q2 guidance of $715-$725 million in sales. Stock jumped 6% in extended trading.
Alphabet and Meta both reported stronger-than-expected earnings, with Alphabet's stock rising 7% and Meta falling 7% in extended trading. The divergence stems from Alphabet's massive cloud infrastructure business that monetizes AI investments, while Meta lacks this revenue stream. Alphabet raised 2026 capex guidance to $180-190 billion, while Meta increased its guidance to $125-145 billion.
