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Mike Cannon-Brookes, co-founder of software company Atlassian Corp., in Sydney, Australia, Dec. 6, 2023.

Lisa Maree Williams | Bloomberg | Getty Images

Atlassian shares popped 19% after the software company blew past Wall Street’s fiscal second-quarter earnings and guidance expectations.

The stock traded near a fresh 52-week high and was on pace for their best day since July 30, 2021.

Adjusted earnings came in at 96 cents per share, ahead of the 76 cents per share projected by analysts polled by LSEG. Atlassian reported revenues of $1.29 billion, versus the $1.24 billion estimate.

For the third quarter, Atlassian said it anticipates $1.35 billion in revenue, above the $1.31 billion LSEG estimate and previous guidance.

Atlassian benefited from robust cloud and data center growth during the period as more customers turned to artificial intelligence solutions. That contributed to 30% subscription revenue growth over the prior year. Atlassian also said it now expects 26.5% cloud growth and 21.5% data center growth for the fiscal year.

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“The momentum we’re seeing across the business reinforces our conviction around investments we are making in our key strategic priorities of serving enterprise customers, AI, and the System of Work to deliver durable, long-term growth,” finance chief Joe Binz said in an earnings release.

Shares have gained nearly 10% since the start of the year.

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TikTok’s traffic bounces back despite being pulled off app stores, fears of shutdown

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TikTok’s traffic bounces back despite being pulled off app stores, fears of shutdown

A 3D-printed miniature model of U.S. President-elect Donald Trump and TikTok logo are seen in this illustration taken January 19, 2025.

Dado Ruvic | Reuters

TikTok has nearly bounced back to its original traffic levels after usage fell 85% when the app temporarily shut down earlier this month, according to Cloudflare Radar.

“DNS traffic for TikTok-related domains has continued to recover since service restoration, and is currently about 10% lower than pre-shutdown level,” David Belson, head of data insight at Cloudflare, told CNBC in a statement.

DNS, short for Domain Name System, converts website names into IP addresses that browsers use to access internet resources. Cloudflare Radar is the connectivity cloud company’s hub that displays internet trends and insights with DNS to monitor global internet traffic. 

TikTok briefly shutdown in the U.S. following the Supreme Court’s decision to uphold a law signed by former President Joe Biden in April. That legislation required China-based ByteDance to either divest its ownership of TikTok or have the app face an effective ban in the U.S. on Jan. 19. Consequently, Apple and Google removed TikTok from their U.S. app stores to comply with the law. 

The app came back online after President Donald Trump said he would postpone enforcement of the ban, signing an executive order on his first day in office to extend the law’s deadline by an additional 75 days to April 5.

In the meantime, U.S. investors from Frank McCourt to Jimmy Donaldsonknown as Mr. Beast, have offered to do deals that would bring ownership of TikTok to the U.S. Trump has also expressed interest in billionaire Elon Musk, who runs Tesla and SpaceX and owns X, or Oracle Chairman Larry Ellison obtaining partial ownership of the app.

The data from Cloudflare shows that, for the most part, TikTok has managed to maintain the bulk of its users and creators in the U.S. despite going offline for about 14 hours and remaining off of the Apple or Google app stores. 

As for its alternatives, Cloudflare’s data shows a spike in traffic the day of the temporary ban, with levels remaining steadily higher in the following week. Traffic for alternatives began to grow a week ahead of the expected shutdown, driven by the increased popularity of RedNote, known as Xiaohongshu in China, Belson said.

But traffic to TikTok alternatives peaked on Jan. 19, the day TikTok returned online, he added.

“DNS traffic fell rapidly once the shutdown ended, and has continued to slowly decline over the last week and a half,” Belson said.

‘Made peace with it’

Rep. Khanna on TikTok: No evidence of systematic algorithmic interference by the Chinese government

Lemay said he has found audiences on other platforms. YouTube is where he is now making his most consistent earnings. Currently, he has more than 5.6 million subscribers on YouTube, where he posts long- and short-form videos that have amassed billions of views.

“If the worst comes to worst and TikTok goes away, I have this solid foundation with a company like Google,” Lemay said. “That’s not going anywhere.”

While some successful TikTok creators have been able to find audiences on YouTube Shorts and Meta’s Instagram Reels, many have discovered that their TikTok content doesn’t translate as well to other platforms. 

Noah Glenn Carter, another creator with nearly 10 million TikTok followers, has not been able to find the same kind of audience on Instagram and YouTube, where his following and viewership are significantly lower.

In the weeks leading up to the ban, Carter contacted companies he’s previously worked with on brand deals, which are agreements where brands pay creators to promote their products and services on social media. With TikTok’s future in limbo, brands are pausing or altering their agreements to include competing platforms, Carter and other creators and managers told CNBC.

In the meantime, Meta has begun offering creators deals to promote Instagram on TikTok, YouTube Shorts, Snapchat and other services, CNBC reported earlier this month.

“I don’t know if I can really keep the same rates with my biggest platform going dark,” said Carter.

Other creators say they refuse to believe TikTok will ever truly get banned. 

“I’m going to believe it when I see it in those 75 days,” said Michael DiCostanzo, a creator with more than 2.3 million followers on TikTok.

DiCostanzo posts his content to competing short-form video platforms, but he said other apps have yet to build the kind of environment that brought him and others success on TikTok. 

“I don’t know if YouTube Shorts or Reels can ever actually replicate that sense of community,” said DiCostanzo. “If TikTok were to completely shut down, I don’t think they would get that big of a boost.”

Don’t miss these insights from CNBC PRO

Rep. Jim Himes: TikTok isn't currently being used by the CCP in untoward ways

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Samsung profit misses estimates, falls sharply from previous quarter as costs rise

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Samsung profit misses estimates, falls sharply from previous quarter as costs rise

Photo illustration showing the Samsung Group company logo displayed on a smartphone screen.

Sopa Images | Lightrocket | Getty Images

Samsung Electronics on Friday reported better-than-expected fourth-quarter revenue, though its operating profit dropped sharply from the previous three months due to higher R&D expenses in its chips segment.

Here are Samsung’s fourth-quarter results compared with LSEG SmartEstimate, which is weighted toward forecasts from analysts who are more consistently accurate:

  • Revenue: 75.8 trillion Korean won ($52.2 billion) vs. KRW 75.4 trillion
  • Operating profit: KRW 6.5 trillion vs. KRW 6.8 trillion

Revenue rose about 12% from the same period from last year, while operating profit grew about 130%, year on year. However, operating profit fell nearly 30%, and revenue slipped by over 4%, quarter on quarter, amid soft market conditions and an increase in company expenditures.

Samsung shares fell 2.2% in South Korea on Friday morning.

Fourth-quarter revenue beat Samsung’s own guidance of KRW 75 trillion, while operating profit came in line with the company’s forecast.

Samsung is a leading manufacturer of memory chips, which are utilized in devices such as laptops and servers, and is also the world’s second-largest player in the smartphone market.

“Although fourth quarter revenue and operating profit decreased on a quarter-on-quarter (QoQ) basis, annual revenue reached the second-highest on record, surpassed only in 2022,” Samsung said in its statement.

For the full year, Samsung reported KRW 300.9 trillion in revenue and KRW 32.7 trillion in operating profit. In 2023, the company posted an annual revenue of KRW 258.94 trillion and an operating profit of KRW 6.57 trillion.

For the current quarter, Samsung said that earnings might be limited due to weakness in its semiconductor business but that it would pursue growth through AI smartphones and other premium devices. 

“For 2025 as a whole, the Company plans to enhance technological and product advantages in AI, continue to meet future demand for high-value-added products and drive sales growth in premium segments,” it added.

Memory business

Samsung Electronics’ chip business posted an operating profit of KRW 2.9 trillion in the fourth quarter, down over 25% from the three months ending in October, while its annual numbers came in below that of SK Hynix.

This was despite Samsung’s memory business achieving a record-high fourth-quarter revenue of 30.1 trillion helped by demand for its advanced memory products used for AI applications. 

“[O]perating profit decreased slightly compared to the previous quarter as a result of increased R&D expenses to secure future technology leadership, as well as the initial ramp-up costs to secure production capacity for cutting-edge nodes,” Samsung said. 

Samsung and SK Hynix both provide DRAM, or dynamic random access memory, products — a type of semiconductor memory needed for data processing. 

However, SK Hynix has left Samsung behind in HBM, or high bandwidth memory, a type of DRAM, in which chips are vertically stacked to save space and reduce power consumption. 

According to Samsung, its memory business is cutting down legacy products to better align with market demand and increasing its proportion of high value-added products, such as HBM. 

“In 2025, overall memory market demand is expected to recover from the second quarter,” Samsung said, warning that its earnings are expected to remain weak in the current quarter.  

Smartphones

Samsung’s Mobile eXperience and Networks businesses, tasked with developing and selling smartphones, tablets, wearables and other devices, reported a quarter-over-quarter decrease in sales and profit.

Samsung said the performance was in part due to the fading effects of new flagship smartphone model launches.

The segment saw a consolidated revenue of KRW 25.8 trillion and an operating profit of KRW 2.1 trillion in the fourth quarter.

“However, on a full-year basis, flagship sales saw robust growth on the back of double-digit growth of the Galaxy S24 series featuring Galaxy AI, with tablets and wearables also increasing in both value and shipments,” Samsung said. 

In the current quarter, Samsung plans to drive sales growth with new flagship models, particularly its newly launched Galaxy S25 series and will continue to push into the AI smartphone market.

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Cook points to ‘fiscal stimulus’ after Apple suffers steepest China sales decline in a year

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Cook points to 'fiscal stimulus' after Apple suffers steepest China sales decline in a year

When Apple reported its December quarter earnings on Thursday, it revealed that China sales had dropped 11.1% on an annual basis.

It was the worst quarter by growth rate since the December quarter a year ago, and marks the sixth straight quarter of declines in Apple’s third-largest region by revenue.

Ahead of Apple earnings, analysts had been fretting about exactly this issue. They cited supply chain checks in the country suggesting weak demand and an overall impression that the Chinese consumer was starting to favor locally made devices from companies such as Huawei and Xiaomi over the iPhone.

China is “the most competitive market in the world,” Cook told analysts on Thursday. In 2024, Apple was third in market share in China, behind Vivo and Huawei, according to an IDC estimate from this week.

When Cook was asked about the company’s performance in China on Thursday by CNBC’s Steve Kovach and analysts on the earnings call, he focused less on the competition and more on how the company’s operations decisions affected China sales.

Cook said there were a few things to keep in mind about the company’s 11.1% decrease in the quarter.

Most notably, Cook cited Apple Intelligence’s absence in China and Chinese affecting sales. He added that the company’s suite of artificial intelligence features for the iPhone 16 had bolstered iPhone sales in the U.S. and other countries where it’s available.

“During the December quarter, we saw that in markets where we had rolled out Apple Intelligence, that the year-over-year performance on the iPhone 16 family was stronger than those markets where we had not rolled out Apple intelligence,” Cook said.  

The company’s AI software is only available in English for now, but Apple will release a simplified Chinese version in April, Apple said Thursday. That doesn’t necessarily mean Apple Intelligence will launch in China that month, but it does mean Chinese speakers elsewhere will get to test out Apple’s AI.

“Until we get through the regulatory process, nothing is certain, and we’re going through it now,” Cook told CNBC.

He added that the company is looking for a local partner that is licensed by the country to offer their AI to handle tricky or complicated questions, like OpenAI’s ChatGPT does in the U.S.

“There are a number of Chinese companies that do have licenses to operate locally,” Cook said. “What we have to do is choose one and work with them on the integration, just like OpenAI.”

About half of the China revenue decline was because the company had misread demand in the country, Cook said. That led to a “channel inventory” issue. Apple uses the phrase “channel” to describe companies like wireless carriers and retailers that sell Apple devices.

“My point was that our channel inventory reduced from the beginning of the quarter to the end of the quarter, and that was over half of the reduction in the reported results,” Cook said. “Part of the reason for that is that our sales were a bit higher than we forecasted them to be, toward the end of the quarter.”

Apple ended the quarter “a little leaner” in inventory in the country than the company had expected to, said Cook, who also pointed to a nationwide subsidy program that could effectively reduce the cost of some Apple products in the country.

“There is now a national subsidy program that launched on Jan. 20, on categories that some of our products are a part of. It’s a fiscal stimulus, kind of,” Cook told CNBC.

The Chinese government introduced subsidy policies last year to boost consumption and domestic demand, according to analyst firm Canalys. Smartphones were added to the list of eligible products earlier this month. The subsidy is capped at 500 yuan per product, and models that cost over 6,000 yuan, such as Apple’s Pro phones, aren’t eligible.

On the earnings call Thursday, Cook said that some of Apple’s products including smartphones, tablets, PCs and smartwatches would be covered by the subsidy.

“We do see fiscal stimulus occurring, and we’ll be glad to talk about what that looks like on the next call,” Cook said.

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