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Zach Kornfeld and Keith Habersberger of the Try Guys

JD RENES

The Try Guys, one of YouTube’s most established creator groups, have successfully abandoned their reliance on Google’s algorithms and advertiser revenue by launching a standalone streaming service called 2nd Try. And it’s already starting to pay off.

Brand partnerships, sponsored content and advertising have long been key revenue channels for creators, but some are turning away from the unpredictable world of algorithm-driven platforms to subscription services for more stable income.

“Having a business that is reliant on ads is very unstable and very unpredictable,” Try Guys co-founder Zach Kornfeld told CNBC in an interview. “There’s just so much that’s out of your control, and we certainly experienced the worst of that. It’s tenuous at best. Corrosive and explosive at worst. And it also forces you creatively to constantly optimize for things that are not always in your audience’s best interest.”

With a potential TikTok ban threatening to wipe out nearly $15 billion in annual revenue for small and medium businesses, and YouTube’s ad revenue growth slowing, creators are seeking more reliable income sources in an increasingly volatile advertising market.

The Try Guys now have over 8 million subscribers and 2.7 billion views on YouTube. They announced in May the launch of their streaming service, 2nd Try, where most of their new videos are behind a paywall and subscribers can access exclusive content for around $5 a month without ads. In the three months since launching 2nd Try, the company says it is on track to reach profitability.

Other creators are trying to recreate the Netflix subscription model, too. Watcher Entertainment and Dropout are two other popular YouTube channels that launched subscription-based streaming services to avoid the volatility of social media algorithms.

Social media platforms rely on algorithms to decide what content users see, based on their past interactions and preferences. The algorithms analyze user behavior to create personalized content feeds, which often prioritize posts that are likely to generate engagement, like likes or shares. As a result, many creators feel pressured to make content that caters to the algorithm, even if they believe it lowers the quality of their work, just to stay visible.

“We are really happy with how it’s going so far. It’s more than we probably thought we’d have at this point,” said co-founder Keith Habersberger. “We have a long road ahead. The goal isn’t to get to this number. The goal is to keep growing and also to keep learning, and we’re going to be making mistakes.”

Subscription platforms like Patreon allow creators to bypass the algorithm entirely, connecting directly with their most loyal fans who are willing to pay for exclusive content.

“It’s just not a reliable source of income for creative people, and so I think over the years, creators have learned that, and they’re seeking something more stable,” said Patreon founder and CEO Jack Coyne in an interview with CNBC.

Try Guys found early success with BuzzFeed before starting their independent creative venture in 2018. However, they faced a career-defining internet scandal in 2022 when one of their co-founders and main talent was caught having an affair with another employee. It damaged brand relationships and the company hemorrhaged money making new YouTube videos.

“Our company was operating at a loss for essentially two years. We got to a point where it cost more money for us to make the shows our audience loved than we got in from YouTube,” said Kornfeld. 

Revenue from 2nd Try makes up about 20% of the company’s total sales. The Try Guys will continue posting content on YouTube. The platform’s ad payments remain an important part of its business model. However, Kornfeld and Habersberger emphasize that their main focus is growing 2nd Try to be their biggest income stream, alongside merchandise sales and live touring.

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AWS recovers, Apple rallies, General Motors beats and more in Morning Squawk

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AWS recovers, Apple rallies, General Motors beats and more in Morning Squawk

Attendees walk through an exposition hall at AWS re:Invent, a conference hosted by Amazon Web Services, in Las Vegas on Dec. 3, 2024.

Noah Berger | Getty Images

This is CNBC’s Morning Squawk newsletter. Subscribe here to receive future editions in your inbox.

Here are five key things investors need to know to start the trading day:

1. WTF, AWS

What began as an early morning outage report for Amazon Web Services snowballed into a daylong saga that limited access to popular websites used for work, school, entertainment and travel. Monday evening, the company said all its services returned to normal operations.

Here’s a recap:

  • Downdetector showed users had problems accessing a variety of sites, ranging from Snapchat to Lyft to The New York Times to Venmo. Travelers reported problems with finding airline reservations and checking in online, while the British government said it was in communication with AWS over impacted services.
  • AWS is the leading vendor of cloud infrastructure technology, with millions of companies and groups using its services tied to servers and storage.
  • Cybersecurity executive Rob Jardin told CNBC that the outage didn’t seem to be caused by a cyber attack and was likely due to a technical issue with one of Amazon’s key data centers.
  • It’s not the only outage in recent memory: AWS faced a disruption in 2023, and Microsoft Windows systems went dark last year following a problematic CrowdStrike software update.
  • AWS said it will share a “post-event summary” following Monday’s outage.

2. Green Apple

Consumers experience the iPhone 17 in an Apple store in Shanghai, China on October 13, 2025.

Cfoto | Future Publishing | Getty Images

On the other hand, yesterday was a great day for Apple investors. Shares rallied to all-time highs after a report from technology research firm Counterpoint showed iPhone 17 sales were off to a good start in the U.S. and China.

CNBC’s Jim Cramer said Apple’s surge shows why you’re better off holding the stock than dumping it. Meanwhile, Ritholtz Wealth Management CEO Josh Brown said on CNBC that Apple’s artificial intelligence efforts can create a “whole different story” for the investing outlook.

Apple’s jump helped juice the broader market, with the three major indexes all gaining more than 1%. Follow live market updates here.

3. Greasing the wheel

Traders work on the floor at the New York Stock Exchange on March 27, 2025.

Brendan McDermid | Reuters

The latest big-name corporate earnings reports out this morning came in stronger than Wall Street anticipated.

General Motors blew past analysts’ consensus expectations for both earnings per share and revenue in the third quarter. The automaker also lifted its full-year guidance and said the impact from tariffs would be lower than previously forecast. Shares surged 8.5% in premarket trading.

Coca-Cola also beat the Street’s forecasts on both lines for the third quarter, sending shares up nearly 2% before the bell. However, the soda maker said demand remained soft.

4. End in sight?

White House National Economic Adviser Kevin Hassett prepares to give a live television interview at the White House in Washington, D.C., U.S., August 4, 2025.

Jonathan Ernst | Reuters

There could be light at the end of the tunnel for the federal government shutdown. National Economic Council Director Kevin Hassett told CNBC the closure — which is now on its 21st day — “is likely to end sometime this week.”

The White House adviser warned, however, that the Trump administration could impose “stronger measures” if a resolution isn’t reached. Hassett said he heard that Senate Democrats felt it would be “bad optics” to reopen the government before the “No Kings” protests against Trump that took place nationwide Saturday.

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5. Down under

U.S. President Donald Trump, and Anthony Albanese, Australia’s prime minister, shake hands outside the West Wing of the White House in Washington, DC, US, on Monday, Oct. 20, 2025.

Bloomberg | Bloomberg | Getty Images

As the focus on rare earth materials intensifies, the U.S. and Australia inked an agreement that includes project plans totaling as much as $8.5 billion. As CNBC’s Spencer Kimball notes, this deal comes as Trump pushes to build a rare earth supply chain that’s independent of China.

Australian Prime Minister Anthony Albanese said each country would contribute $1 billion over the next six months. Later, the White House said in a fact sheet that the countries would each invest more than $3 billion in that time frame.

Shares of U.S.-listed rare earth stocks jumped in Monday’s session. Notably, Cleveland-Cliffs soared more than 20% after the steel producer said it was considering creating a rare earth mining business.

The Daily Dividend

Mark Cuban says PBMs are too powerful but gives Trump credit for tackling drug prices with TrumpRx

CNBC’s Spencer Kimball, Tasmin Lockwood, Kevin Breuninger, Jaures Yip, Luke Fountain, Sean Conlon, Annie Palmer, Katrina Bishop and Leslie Josephs contributed to this report. Terri Cullen edited this edition.

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China’s rare earth magnet exports to U.S. fall for second month, reversing brief recovery

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China's rare earth magnet exports to U.S. fall for second month, reversing brief recovery

Annealed neodymium iron boron magnets sit in a barrel prior to being crushed into powder at Neo Material Technologies Inc.’s Magnequench Tianjin Co. factory in Tianjin, China, on Friday, June 11, 2010.

Bloomberg | Bloomberg | Getty Images

China’s exports of rare earth magnets to the U.S. fell sharply in September, ending months of recovery as the two economic superpowers remain locked in trade disputes and Washington pushes to secure alternative supply chains.

Data from China’s General Administration of Customs on Monday showed that U.S.-bound exports fell 28.7% in September from August to 420.5 tonnes. That figure was also nearly 30% lower than a year prior.

It was the second consecutive monthly decline after a short-lived rebound that started in June, when Beijing had agreed to expedite rare earth export permits during trade talks with U.S. officials in London.

Chinese rare earth magnet companies have reportedly been facing tighter scrutiny on export license applications starting in September. The customs figures also come from before Beijing expanded its export licensing regime earlier this month.

China has a stranglehold on the production of rare-earth permanent magnets, with an estimated 90% of the market, and a similar dominance in refining the elements used to make them, according to the International Energy Agency. 

The magnets are vital for technologies such as electric vehicles, renewable energy, electronics and defense systems. Beijing’s previous restrictions caused shortages and supply disruptions across industries earlier this year.

China’s export curbs have also extended beyond just the U.S., with total rare earth magnet shipments falling 6.1% in September from August, according to customs data. 

The disruptions have prompted the U.S. and its partners to accelerate efforts to build alternative rare earths and critical mineral supply chains. 

On Monday, the U.S. and Australia signed a minerals deal worth up to $8.5 billion. The agreement includes funding for multiple projects to boost supplies of rare earth and critical mineral materials used in defense manufacturing and energy security.

The deal comes as U.S.-based Noveon Magnetics signed a memorandum of understanding with Australia’s Lynas Rare Earths earlier this month to form a strategic partnership aimed at developing a scalable American supply chain for rare earth magnets.

However, manufacturing rare earth magnets is highly complex and relies on upstream rare earth element mining and refining operations. 

Currently, only a handful of U.S. companies manufacture magnets domestically, with many in the early stages of production.

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CoreWeave CEO says Core Scientific ‘not a need to have’ as shareholder opposition to deal rises

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CoreWeave CEO says Core Scientific 'not a need to have' as shareholder opposition to deal rises

CoreWeave Inc. signage in Times Square in New York, US, on Friday, May 9, 2025.

Yuki Iwamura | Bloomberg | Getty Images

CoreWeave CEO Michael Intrator told CNBC Tuesday that the firm’s proposed acquisition of Core Scientific would be a “nice to have” rather than a necessity as shareholders prepare to potentially block the deal.

In July, AI cloud provider Coreweave proposed an all-stock deal valued at around $9 billion to buy the Bitcoin miner and data center firm, Core Scientific. Immediately after the news, Core Scientific’s stock price fell, plummeting nearly 18%.

The deal has received criticism with key proxy advisor Institutional Shareholder Services (ISS) recommending on Monday that shareholders vote against the acquisition. Core Scientific’s share price has conitnued to rise after the deal was announced which suggests some investors think that the company is valued higher than what CoreWeave has offered, ISS said.

Intrator said that he was “disappointed” by the ISS report and continues to believe that the deal is “in the long-term interest of Core Scientific shareholders.” However, CoreWeave will not raise the price of the offer.

“We think that the bid that we put out there for [Core Scientific] is a fair representation of the relative value of the two companies as an all stock deal,” Intrator told CNBC. “We are going to just kind of proceed as we have, in the event that the transaction does not go through. It is a nice to have, not a need to have for us.”

“Everything has a value, and the number we put out is the value we’re willing to pay for them under all circumstances,” Intrator added.

CoreWeave CEO calls Core Scientific a 'nice to have' amid rising opposition to the acqusition

Earlier this month Two Seas Capital, a major Core Scientific shareholder publicly opposed the acquisition saying that the price CoreWeave is offering is too low. Shareholders will vote on the deal on October 30.

“We see no reason why Core Scientific shareholders should accept such an underwhelming deal. Based on recent trading data, we see little evidence that they will,” Two Seas Capital said in a Friday letter to shareholders.

CoreWeave has aggressive pursued acqusitions this year to buy AI-related firms like OpenPipe, Weights & Biases, and Monolith as it looks to expand its product offering.

The company, which has built data centers and offers Nvidia-powered computing power to hyperscalers like Microsoft, has been riding the wave of artificial intelligence investments.

“We’ve been in acquisitive mode as we continue to build and extend the functionality of our company,” Intrator said.

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