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Figma shares climb on earnings beat, but analysts note that AI risk remains
CNBC· 2026-02-19 16:12
Shares of Figma traded higher on Thursday, but were well short of the initial surge following earnings.The stock was up by as much as 15% after the bell on Wednesday, when the design software maker reported fourth-quarter results that beat analysts' expectations and offered rosy guidance.Figma's revenue grew 40% year over year to $303.8 million during the period. It reported a net loss of $226.6 million, or 44 cents per share, compared with net income of $33.1 million, or 15 cents per share, in the fourth q ...
Accenture tells senior staff to use AI tools or risk losing out on leadership promotions
CNBC· 2026-02-19 15:09
Core Viewpoint - Accenture has implemented a policy requiring senior staff to regularly use AI tools to be eligible for promotions to leadership roles [1][2]. Group 1: Policy Implementation - Senior staff, including associate directors and senior managers, must adopt AI tools regularly to progress in their careers [1]. - The policy was communicated through an internal email, confirming its necessity for leadership advancement [2]. Group 2: Company Strategy - Accenture aims to be the "reinvention partner of choice" for clients, emphasizing the importance of adopting the latest technologies to enhance client service [2]. - The spokesperson highlighted that the strategy focuses on being client-focused and AI-enabled, creating a great workplace environment [2]. Group 3: Scope of Policy - The policy does not apply to Accenture staff in 12 European countries or those working in divisions handling U.S. government contracts [3].
Apple sued by West Virginia for alleged failure to stop child sexual abuse material on iCloud, iOS devices
CNBC· 2026-02-19 15:03
Core Viewpoint - West Virginia's attorney general has filed a consumer protection lawsuit against Apple, accusing the company of failing to prevent child sexual abuse materials from being stored and shared via its iOS devices and iCloud services [1] Group 1: Allegations Against Apple - The attorney general, John "JB" McCuskey, claims that Apple prioritizes its privacy branding and business interests over child safety [1] - Other major tech companies, such as Google, Microsoft, and Dropbox, have been more proactive in combating child sexual abuse materials using systems like PhotoDNA [1] Group 2: Technology and Features - PhotoDNA, developed by Microsoft and Dartmouth College in 2009, uses hashing and matching to automatically identify and block child sexual abuse material images that have been reported to authorities [2] - In 2021, Apple tested its own CSAM-detection features aimed at automatically finding and removing images of child exploitation and reporting them to the National Center for Missing & Exploited Children [2] Group 3: Response to Criticism - Apple withdrew its plans for CSAM-detection features after privacy advocates raised concerns that the technology could create a backdoor for government surveillance and be misused to censor other content on iOS devices [3] - The company's subsequent efforts have not satisfied a wide range of critics [3]
Doordash stock rallies as investment cycle starts showing signs of a payoff
CNBC· 2026-02-19 14:48
Core Viewpoint - Doordash's stock experienced a rally despite disappointing fourth-quarter results, as Wall Street recognized early progress in the company's investment cycle [1][2]. Group 1: Financial Performance - The company reported earnings that fell short of Wall Street's expectations on both revenue and profit, leading to an initial drop of about 10% in shares during extended trading [1]. - Doordash anticipates a $20 million impact from recent U.S. winter storms and increased order costs due to investments in longer-distance deliveries and cost increases in regulated markets [2]. Group 2: Investment Strategy - The company is expected to continue investing in Deliveroo, the British delivery platform acquired last year, which is projected to negatively impact adjusted EBITDA in the first quarter [2]. - Analysts noted that Doordash's investments are beginning to show signs of early payoff, contributing to a positive outlook despite the subpar results [2]. Group 3: Analyst Insights - Morgan Stanley analyst Brian Nowak highlighted that Doordash's businesses are strong and accelerating, with improving unit economics that support durable growth and further investment [3].
U.S. trade deficit totaled $901 billion in 2025 despite Trump's tariffs
CNBC· 2026-02-19 14:43
A Chinese flag flutters at top of a building of China Customs, at a terminal of the Yantian port in Shenzhen, Guangdong province, China October 30, 2025.The U.S. trade deficit swelled in December, closing out a year in which the imbalance was essentially unchanged despite efforts by the Trump administration to close the wide gap.Closing out a tumultuous year in the global marketplace, the goods and services shortfall in December totaled $70.3 billion, the Commerce Department reported Thursday. That marked a ...
Etsy stock pops on Depop deal despite disappointing revenue, merchandise sales
CNBC· 2026-02-19 14:36
The Etsy company logo is seen at its headquarters in New York City on Dec. 13, 2023.Etsy shares popped on Thursday after the company said it plans to offload its fashion resale app Depop to eBay for about $1.2 billion in cash. The online marketplace also reported mixed earnings results for the fourth quarter. Here's how Etsy did, compared with estimates from analysts polled by LSEG: Earnings per share: 92 cents vs. 84 cents estimatedRevenue: $882 million vs. $885 million estimatedGross merchandise sales, or ...
Why New Balance's 'dad shoes' are beating Nike as sales surge 19%
CNBC· 2026-02-19 13:30
In this articleNKEwatch nowNew Balance sales grew 19% last year to $9.2 billion as the legacy sneaker giant continued to outperform the global footwear market and take share from floundering competitors like Nike.The 120-year-old Boston-based footwear brand, which is private, exclusively shared its 2025 results with CNBC. In addition to the sharp 2025 growth, the retailer said it could reach its goal of $10 billion in annual revenue by the end of the year."We're competitive. No question about it. But we wan ...
Walmart earnings, Fed meeting minutes, Zuckerberg's testimony and more in Morning Squawk
CNBC· 2026-02-19 13:20
Group 1: Walmart - Walmart shares fell over 2% in premarket trading after the company's fiscal year guidance was softer than expected, with adjusted earnings per share projected between $2.75 and $2.85, below Wall Street's forecast of $2.96 [2][5] - Despite the recent dip, Walmart's stock has increased by more than 21% over the past year and nearly 175% over the last five years, reaching a market cap of $1 trillion earlier this month [5] - The company is under new leadership with CEO John Furner, who took over earlier this month, and investors are closely watching Walmart's future performance [5] Group 2: Federal Reserve - Minutes from the Federal Reserve's January meeting indicated a consensus on holding interest rates steady, but there was significant division regarding future monetary policy directions [2][3] - Some Fed members suggested that interest rates could decrease if inflation trends downward, while others believe that easing may not be necessary until clear signs of disinflation are observed [3] Group 3: Airline Industry - United Airlines announced changes to its frequent flyer program, stating that customers flying basic economy without the airline's credit card will earn fewer miles, aligning with similar moves by American Airlines and Delta Air Lines [12][13] - Cardholders will benefit from earning more points and receiving frequent flyer discounts, marking significant adjustments to the airline's loyalty program in over a decade [14] Group 4: Pharmaceutical Industry - FDA Commissioner Marty Makary warned that the U.S. is lagging behind China in early-stage drug development and suggested streamlining the process for initiating trials on new treatments [6][7] - Moderna's shares rose approximately 6% after the FDA agreed to review its experimental mRNA flu shot, reversing a previous refusal of the application [8]
Blue Owl curbs investor liquidity following asset sale, shares down 3% in pre-market trading
CNBC· 2026-02-19 13:13
Group 1 - Blue Owl Capital's shares fell nearly 3% in pre-market trading following the sale of $1.4 billion in loan assets from three private debt funds [1] - The sale involved four North American pension and insurance investors, with the loans sold at 99.7% of par value [1] - The largest portion of the sale came from the Blue Owl Capital Corporation II fund (OBDC II), which sold $600 million in loans, representing about 34% of its $1.7 billion portfolio [2] Group 2 - Following the sale, OBDC II will discontinue regular quarterly liquidity payments to its investors, marking a significant change in its strategy [2] - The stock was reported down 2.8% in pre-market trading as of 8:06 a.m. ET [2]
Small furniture retailers face existential tariff threat, regardless of Supreme Court ruling
CNBC· 2026-02-19 13:00
Core Viewpoint - The furniture industry is facing significant challenges due to high import tariffs and ongoing uncertainty, which have exacerbated existing struggles within the sector [3][4][6]. Industry Challenges - Furniture importers are currently subject to around 25% import duties, which were initially set to increase to 50% but have been postponed to 2027 [4][5]. - The unpredictability of tariff policies has made it difficult for businesses to plan and invest, leading to increased operational challenges [6][24]. - The industry has been under pressure for the past four years, with the impact of tariffs compounding existing difficulties [6][10]. Market Dynamics - The Covid-19 pandemic initially boosted furniture sales as consumers invested in home improvements, but inflation and rising interest rates have since led to a decline in the sector [8][9]. - American Signature Furniture declared bankruptcy, citing a 27% decline in sales and a significant increase in net operating losses from $18 million to $70 million [10][11]. - Smaller furniture businesses are particularly vulnerable to tariff impacts due to limited resources compared to larger competitors [12][13]. Competitive Landscape - Larger furniture companies, such as RH, Williams-Sonoma, and Wayfair, have managed to grow sales and margins despite facing higher import costs [16][17][18]. - Ikea reported stable revenue and attributed increased operating expenses to acquisitions rather than tariffs [16]. - The market dynamics have created opportunities for larger firms to capture market share from smaller businesses struggling with tariff-related costs [15]. Future Uncertainty - The U.S. Supreme Court is reviewing the legality of the tariffs, which could lead to further changes in the industry landscape depending on the ruling [21][22]. - The outcome of the court's decision may affect how tariffs are implemented and could lead to either refunds or increased tariffs [22][23].