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Roblox shares plunged 14% after the gaming platform fell short of Wall Street’s bookings and daily active user estimates.

Roblox reported bookings of $1.36 billion for the fourth quarter, versus the $1.37 billion expected by analysts polled by LSEG. Daily active users came in at 85.3 million, reflecting 19% growth from a year ago. However, the figure came up short of a StreetAccount estimate of 88.2 million.

The company said it anticipates bookings to range between $5.20 billion and $5.30 billion for 2025, compared to a $5.30 billion FactSet estimate.

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CEO David Baszucki said in an earnings release that the company would continue to invest in its virtual economy, app performance and “AI-powered discovery and safety, empowering creators and enhancing the user experience,” in the new year.

The results from Roblox come amid a rocky stretch for the industry. Video game developer Electronic Arts cut its forecast last month due to slowing sales in its soccer franchise, among other games. In its earnings release Tuesday, the company showed a 6% decline in net bookings from a year ago.

Roblox which relies mainly on content and games created by its users, soared in popularity in the depths of Covid-19, especially among younger generations.

Shares of the San Mateo-based company went public on the New York Stock Exchange in March 2021 and closed at $69.50, or a roughly $38 billion market cap. With Thursday’s moves, the stock sits nearly 53% off of its all-time closing high reached in November 2021.

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‘Dangerous proposition’: Top scientists warn of out-of-control AI

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'Dangerous proposition': Top scientists warn of out-of-control AI

Yoshua Bengio (L) and Max Tegmark (R) discuss the development of artificial general intelligence during a live podcast recording of CNBC’s “Beyond The Valley” in Davos, Switzerland in January 2025.

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Artificial general intelligence built like “agents” could prove dangerous as its creators might lose control of the system, two of of the world’s most prominent AI scientists told CNBC.

In the latest episode of CNBC’s “Beyond The Valley” podcast released on Tuesday, Max Tegmark, a professor at the Massachusetts Institute of Technology and the President of the Future of Life Institute, and Yoshua Bengio, dubbed one of the “godfathers of AI” and a professor at the Université de Montréal, spoke about their concerns about artificial general intelligence, or AGI. The term broadly refers to AI systems that are smarter than humans.

Their fears stem from the world’s biggest firms now talking about “AI agents” or “agentic AI” — which companies claim will allow AI chatbots to act like assistants or agents and assist in work and everyday life. Industry estimates vary on when AGI will come into existence.

With that concept comes the idea that AI systems could have some “agency” and thoughts of their own, according to Bengio.

“Researchers in AI have been inspired by human intelligence to build machine intelligence, and, in humans, there’s a mix of both the ability to understand the world like pure intelligence and the agentic behavior, meaning … to use your knowledge to achieve goals,” Bengio told CNBC’s “Beyond The Valley.”

“Right now, this is how we’re building AGI: we are trying to make them agents that understand a lot about the world, and then can act accordingly. But this is actually a very dangerous proposition.”

Bengio added that pursuing this approach would be like “creating a new species or a new intelligent entity on this planet” and “not knowing if they’re going to behave in ways that agree with our needs.”

“So instead, we can consider, what are the scenarios in which things go badly and they all rely on agency? In other words, it is because the AI has its own goals that we could be in trouble.”

The idea of self-preservation could also kick in, as AI gets even smarter, Bengio said.

“Do we want to be in competition with entities that are smarter than us? It’s not a very reassuring gamble, right? So we have to understand how self-preservation can emerge as a goal in AI.”

AI tools the key

For MIT’s Tegmark, the key lies in so-called “tool AI” — systems that are created for a specific, narrowly-defined purpose, but that don’t have to be agents.

Tegmark said a tool AI could be a system that tells you how to cure cancer, or something that possesses “some agency” like a self-driving car “where you can prove or get some really high, really reliable guarantees that you’re still going to be able to control it.”

“I think, on an optimistic note here, we can have almost everything that we’re excited about with AI … if we simply insist on having some basic safety standards before people can sell powerful AI systems,” Tegmark said.

“They have to demonstrate that we can keep them under control. Then the industry will innovate rapidly to figure out how to do that better.”

Tegmark’s Future of Life Institute in 2023 called for a pause to the development of AI systems that can compete with human-level intelligence. While that has not happened, Tegmark said people are talking about the topic, and now it is time to take action to figure out how to put guardrails in place to control AGI.

“So at least now a lot of people are talking the talk. We have to see if we can get them to walk the walk,” Tegmark told CNBC’s “Beyond The Valley.”

“It’s clearly insane for us humans to build something way smarter than us before we figured out how to control it.”

There are several views on when AGI will arrive, partly driven by varying definitions.

OpenAI CEO Sam Altman said his company knows how to build AGI and said it will arrive sooner than people think, though he downplayed the impact of the technology.

“My guess is we will hit AGI sooner than most people in the world think and it will matter much less,” Altman said in December.

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Doximity shares soar 21% after company beats on revenue, raises fiscal-year guidance

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Doximity shares soar 21% after company beats on revenue, raises fiscal-year guidance

Doximity at the New York Stock Exchange for its initial public offering on June 24, 2021.

Source: NYSE

Shares of Doximity popped 21% on Thursday after the company reported third-quarter fiscal 2025 results that beat analysts’ expectations for revenue and offered rosy guidance.

Here’s how the company did:

  • Earnings per share: 37 cents, may not compare with the 34 cents expected by LSEG
  • Revenue: $168.6 million vs. $152.8 million expected by LSEG

Doximity is a digital platform for medical professionals that helps clinicians stay current on medical news, manage paperwork, find referrals and carry out telehealth appointments with patients. The company primarily generates revenue through its telehealth tools, hiring solutions and marketing offerings for clients such as pharmaceutical companies.

Doximity’s revenue increased 25% in its third quarter from $135.3 million during the same period last year, according to a release.

For its fiscal fourth quarter, Doximity said it expects to report revenue between $132.5 million and $133.5 million, compared with analysts’ estimates of $123.8 million.

The company also raised guidance for its full fiscal year, and said it expects to report revenue between $564.6 million and $565.6 million, up from the range the company shared last quarter, when it expected $535 million to $540 million. Analysts were expecting $540 million for the year.

“We’re proud to deliver another quarter of record engagement in Q3, with over 610,000 unique providers using our clinical workflow tools,” Doximity CEO Jeff Tangney said in a statement. “Our AI tools grew the fastest last quarter, up 60% over the prior quarter, while our newsfeed surpassed more than one million unique providers.”

The company reported net income of $75.2 million, or 37 cents per share, during its third quarter, up from $48.0 million, or 24 cents per share, a year prior. Doximity’s adjusted EBITDA was $102.0 million, up 39% year over year.

Doximity has been a bright spot within the battered digital health sector, which has faced a reckoning as companies have had to adjust to a more muted growth environment. The company’s stock price more than doubled in 2024.

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Amazon’s Whole Foods cites Trump’s NLRB purge as grounds for rejecting union win

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Amazon's Whole Foods cites Trump's NLRB purge as grounds for rejecting union win

An Amazon Prime delivery van sits parked outside of a Whole Foods Market grocery store on August 26, 2024 in El Segundo, California. 

Patrick T. Fallon | Afp | Getty Images

Whole Foods, the Amazon-owned grocery chain, has asked the National Labor Relations Board to overturn a union victory at a Philadelphia store, pointing to President Donald Trump’s recent ouster of several top officials at the agency.

Trump last week fired former NLRB chair Gwynne Wilcox and the agency’s top lawyer, Jennifer Abruzzo. Wilcox’s firing leaves just two remaining members on the five-member NLRB panel, which already had two vacancies at the time she was dismissed. Wilcox sued Trump on Wednesday, alleging her firing was a “blatant violation” of law.

With only two sitting members on the board, the NLRB lacks the necessary quorum to issue decisions on labor disputes, stymying a key function of the labor board.

Whole Foods is disputing the results of a January election at its Spring Garden, Philadelphia, store, where employees voted 130-100 in favor of joining the United Food and Commercial Workers Union. The vote marked the first successful organizing effort at Whole Foods since Amazon acquired the upscale grocer for $13.7 billion in 2017.

In a filing submitted to the NLRB on Monday, Whole Foods argued that “in the absence of a Board quorum, the Regional Director lacks statutory authority to investigate objections or certify the results, or otherwise engage in representation case procedures, including investigating objections or conducting the objections process.”

The objection threatens to set up long legal negotiations and further delays to the start of negotiations on a collective bargaining agreement with workers and the UFCW.

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Wendell Young, president of UFCW Local 1776, the chapter representing the workers, said in a statement that the union “fully expected Whole Foods to try to stall this process.”

“Amazon has a well-documented history of using baseless objections to undermine the rights of workers seeking representation, and this case is no different,” Young said. “Their goal is clear: they don’t want to bargain in good faith with their workers. But this fight is far from over.”

Whole Foods previously said it was “disappointed” by the outcome of the election. It also argued in the Monday filing that the NLRB “tainted” the results of the election by limiting the company from communicating its views on unionization. Last November, the agency ruled that captive audience meetings, or mandatory employee meetings typically called by employers during union campaigns, are unlawful.

Whole Foods also accused the UFCW in its objections of intimidating employees who supported the company.

The company told CNBC in a statement that the UFCW 1776 “illegally interfered” in its employees “right to a fair vote” at the Philadelphia store.

Amazon has also faced mounting labor pressure in it warehouse operations of late. Workers at Amazon’s sprawling Garner, North Carolina, warehouse will begin voting next week on whether to unionize. In December, Amazon delivery and warehouse workers, alongside the Teamsters union, held strikes at seven facilities during the peak holiday shopping season.

As part of her lawsuit, Wilcox is seeking an injunction for her immediate reinstatement to the board. She said her firing amounted to “an immediate and indefinite halt” to all of the NLRB’s regulatory activity.

— CNBC’s Kevin Breuninger contributed to this report.

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