The head of Snapchat operator Snap, Evan Spiegel, presents the new generation of Spectacles in Los Angeles on Sept. 17, 2024.
Andrej Sokolow | Picture Alliance | Getty Images
Snap reported better-than-expected third-quarter results on Tuesday but issued light fourth-quarter guidance. The stock jumped more than 10% in extended trading.
Here is how the company did:
Earnings per share: 8 cents adjusted vs. 5 cents expected, according to LSEG
Revenue: $1.37 billion vs. $1.36 billion expected, according to LSEG
Global daily active users: 443 million vs. 441 million expected, according to StreetAccount
Global average revenue per user: $3.10 vs. $3.09 expected, according to StreetAccount
Sales jumped 15% from a year earlier in the third quarter, while Snap’s net loss narrowed to $153 million from $368 million a year prior.
Fourth-quarter sales will be between $1.51 billion and $1.56 billion. The midpoint of its guidance is $1.54 billion, which is below the average analyst estimate of $1.56 billion. Snap said its adjusted earnings for the fourth quarter will be between $210 million and $260 million. The middle of the range is higher than analysts’ estimates of $230.7 million.
Snap also announced a $500 million stock repurchase program.
The number of Snapchat+ paying subscribers is now at 12 million, the company said. That is up from the 11 million it reported in August. The company debuted its subscription service in 2022, pitching it as a way for users to experience exclusive and prerelease features for $3.99 a month.
“Our investments in AI and AR are powering new creative experiences for our community and driving innovation across our advertising platform, underpinning our long term growth opportunity,” Snap CEO Evan Spiegel said in a statement.
In September, Snap debuted the fifth generation of its Spectacles augmented reality glasses that people can wear to see digital imagery spliced into the physical world. The new Spectacles are only available to developers who must pay $99 a month for one year if they want to build AR apps for the glasses.
Shortly after Snap announced the new Spectacles, Meta CEO Mark Zuckerberg revealed his company’s experimental AR glasses called Orion. Meta’s Orion AR glasses have generated enthusiasm from employees and the company plans to attract developers next year in prelude for an eventual consumer launch.
In a letter to investors, Snap discussed the importance developers play for the company’s Spectacles and AR initiatives.
“We aspire to be the most developer-friendly platform in the world, and we are excited to offer our new generation of Spectacles to developers as an invitation and inspiration to create new experiences,” Snap said in the letter.
Prior to the after-hours pop, Snap shares were down 36% for the year compared to the Nasdaq’s 25% gain.
Nvidia CEO Jensen Huang attends a roundtable discussion at the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris on June 11, 2025.
Sarah Meyssonnier | Reuters
Nvidia announced Tuesday that it hopes to resume sales of its H20 general processing units to clients in China, saying that the U.S. government had assured the company would be granted licenses.
Nvidia’s sales of the H20 chips, which had been designed specifically to keep them out of export controls on China, were halted in April.
“The U.S. government has assured NVIDIA that licenses will be granted, and NVIDIA hopes to start deliveries soon,” the company said in a statement.
This comes against the backdrop of a preliminary trade deal between Washington and Beijing last month that sought China to resume rare earth exports and the U.S. to relax tech export controls.
Nvidia CEO Jensen Huang in recent months has ramped up his lobbying against export controls, arguing that they inhibited American tech leadership. In May, Huang said chip restrictions had already cut Nvidia’s China market share nearly in half.
Huang also announced a new “fully compliant” GPU, NVIDIA RTX PRO, saying it was ideal for smart factories and logistics.
The potential change in U.S. stance follows a meeting between Huang and U.S. President Donald Trump last week.
In his meeting with Trump and U.S. policymakers, Huang had reaffirmed Nvidia’s support for the administration’s job creation and onshoring efforts, as well as the aim for America to lead in global AI, the company said.
Meanwhile, in Beijing, it was confirmed that Huang has met with government and industry officials to discuss the benefits of AI and ways for researchers to advance safe and secure AI for the benefit of all.
In this photo illustration, a man seen holding a smartphone with the logo of US artificial intelligence company Cognition AI Inc. in front of website.
Timon Schneider | SOPA Images | Sipa USA | AP
Artificial intelligence startup Cognition announced it’s acquiring Windsurf, the AI coding company that lost its CEO and several other senior employees to Google just days earlier.
Cognition said on Monday that it will purchase Windsurf’s intellectual property, product, trademark, brand and talent, but didn’t disclose terms of the deal. It’s the latest development in an AI talent war, as companies like Meta, Google and OpenAI fiercely compete for top engineers and researchers.
OpenAI had been in talks to acquire Windsurf for about $3 billion in April, but the deal fell apart, and Google said on Friday that it hired Windsurf’s co-founder and CEO Varun Mohan. Google is paying $2.4 billion in licensing fees and for compensation, as CNBC previously reported.
“Every new employee of Cognition will be treated the same way as existing employees: with transparency, fairness, and deep respect for their abilities and value,” Cognition CEO Scott Wu wrote in a memo to employees on Monday. “After today, our efforts will be as a united and aligned team. There’s only one boat and we’re all in it together.”
Cognition didn’t immediately respond to CNBC’s request for comment. Windsurf directed CNBC to Cognition.
Cognition is best known for its AI coding agent named Devin, which is designed to help engineers build software faster. As of March, the startup had raised hundreds of millions of dollars at a valuation of close to $4 billion, according to a report from Bloomberg.
Both companies are backed by Peter Thiel’s Founders Fund. Other investors in Windsurf include Greenoaks, Kleiner Perkins and General Catalyst.
“I’m overwhelmed with excitement and optimism, but most of all, gratitude,” Jeff Wang, the interim CEO of Windsurf, wrote in a post on X on Monday. “Trying times reveal character, and I couldn’t be prouder of how every single person at Windsurf showed up these last three days for each other and for our users.”
Wu said that the acquisition ensures all Windsurf employees are “treated with respect and well taken care of in this transaction.” All employees will participate financially in the deal, have vesting cliffs waived for their work to date and receive fully accelerated vesting for their, according to the memo.
“There’s never been a more exciting time to build,” Wu wrote.
The Grok logo is being displayed on a smartphone with Xai visible in the background in this photo illustration on April 1, 2024.
Jonathan Raa | Nurphoto | Getty Images
The European Union on Monday called in representatives from Elon Musk‘s xAI after the company’s social network X, and chatbot Grok, generated and spread anti-semitic hate speech, including praise for Adolf Hitler, last week.
A spokesperson for the European Commission told CNBC via e-mail that a technical meeting will take place on Tuesday.
xAI did not immediately respond to a request for comment.
Sandro Gozi, a member of Italy’s parliament and member of the Renew Europe group, last week urged the Commission to hold a formal inquiry.
“The case raises serious concerns about compliance with the Digital Services Act (DSA) as well as the governance of generative AI in the Union’s digital space,” Gozi wrote.
X was already under a Commission probe for possible violations of the DSA.
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Grok also generated and spread offensive posts about political leaders in Poland and Turkey, including Polish Prime Minister Donald Tusk and Turkish President Recep Erdogan.
Over the weekend, xAI posted a statement apologizing for the hateful content.
“First off, we deeply apologize for the horrific behavior that many experienced. … After careful investigation, we discovered the root cause was an update to a code path upstream of the @grok bot,” the company said in the statement.
Musk and his xAI team launched a new version of Grok Wednesday night amid the backlash. Musk called it “the smartest AI in the world.”
xAI works with other businesses run and largely owned by Musk, including Tesla, the publicly traded automaker, and SpaceX, the U.S. aerospace and defense contractor.
Despite Grok’s recent outburst of hate speech, the U.S. Department of Defense awarded xAI a $200 million contract to develop AI. Anthropic, Google and OpenAI also received AI contracts.