Core Insights - Block (XYZ) reported fourth-quarter 2025 adjusted earnings of 65 cents per share, meeting the Zacks Consensus Estimate and showing an increase from 47 cents per share in the prior-year quarter [1][9] - The company announced over 4000 layoffs as part of a restructuring initiative aimed at improving efficiency, which positively impacted investor sentiment, resulting in a nearly 20% increase in stock price during pre-market trading [1] Financial Performance - Net revenues for the quarter were $6.25 billion, slightly missing consensus estimates but reflecting a year-over-year increase of 3.6% [2] - Gross profit rose 24.3% year over year to $2.87 billion, with Square generating $992.7 million (up 7.5%) and Cash App generating $1.83 billion (up 33.1%) [5][9] - Adjusted EBITDA was $929.7 million, up 22.8% year over year, while operating expenses increased by 3.9% to $2.39 billion [6] Segment Performance - Commerce enablement revenues grew 11.1% to $3.05 billion, while financial solutions revenues increased significantly to $1.22 billion [3] - Bitcoin ecosystem revenues decreased by 19.6% to $1.98 billion [3] - Gross Payment Volume (GPV) was $66.94 billion, up 8% year over year, with Square's GPV at $65 billion (up 10.3%) and international GPV increasing by 24% [3][9] Cash App Insights - Cash App's GPV was $1.98 billion, showing a significant year-over-year decline [4] - Cash App's primary banking actives grew 22% year over year to 9.3 million, with monthly transacting actives reaching 59 million [6] Guidance and Future Outlook - For Q1 2026, Block expects gross profit of $2.80 billion, indicating a year-over-year growth of 22%, and adjusted operating income of $600 million with an operating margin of 21% [11] - For the full year 2026, the company anticipates gross profit of $12.20 billion, reflecting an 18% increase from 2025, and adjusted operating income of $3.2 billion with an operating margin of 26% [11] Share Repurchase Program - In Q4 2025, Block repurchased 11.9 million shares of its Class A common stock for $790 million, with an additional $5 billion authorized for share repurchase [10]

Billionaire investors had already built exposure. The cost curve is now being rewritten. Shares of Block Inc (NYSE:XYZ) surged roughly 20% premarket after CEO Jack Dorsey announced the company will cut nearly 4,000 employees — about 40% of its workforce — to become "more compact, flat, and AI-focused."The stock, currently up over 17% and trading at around $63.90 per share, entered the week down double digits year to date. Then Dorsey rewrote the operating model.Billionaires Were Already BuyingIn the fourth ...

Core Viewpoint - Block, the fintech company founded by Jack Dorsey, announced a significant layoff of approximately 40% of its workforce, equating to over 4,000 employees, which may be the largest single-round percentage job cut in S&P 500 history [1] Group 1: Company Strategy and Rationale - Dorsey framed the layoffs as a pivot towards AI, stating that the decision was not due to financial troubles but rather a response to a fundamental shift in the business landscape [2][3] - The company aims to adopt smaller and flatter teams enabled by intelligence tools, which Dorsey believes will fundamentally change company operations [3] Group 2: Employee Transition and Support - Departing employees will receive a severance package that includes 20 weeks of salary plus one week for each year of tenure, equity vested through the end of May, six months of healthcare, corporate devices, and $5,000 for transition support [4] Group 3: Market Reaction and Criticism - Following the announcement, Block's shares rose by 20% in after-hours trading, similar to trends seen in other tech companies that have announced layoffs with AI-focused justifications [5] - Critics argue that the AI rationale is questionable, especially given the company's recent history of increased spending, including a $68 million party for employees just five months prior to the layoffs [6][7] - Concerns have been raised about corporate bloat, as Block tripled its headcount from 2019 to 2022, and Dorsey has acknowledged overbuilding within the organization [7][8]

Group 1 - The company Block announced a significant workforce reduction, planning to nearly halve its employees as part of a strategic overhaul [1] - Following the announcement, Block shares experienced a surge of over 20% in premarket trading, indicating strong market reaction to the news [1] - The overhaul aims to integrate artificial intelligence tools across the company's operations, suggesting a shift towards more technology-driven processes [1]

All right, let's bring in Kevin Green, senior markets correspondent right away to help set up the action today. Uh, so it looks like there will be pressure today, at least starting out the gate. What's your take on what to expect today, KG.>> Yeah, Diane, I think this is actually uh very healthy for the market. We have obviously been at a comp a compression type of range here and right before Nvidia's earnings, we were actually hitting the upper end of resistance when you're looking at the S&P 500. We got a ...

Group 1: Paramount Skydance and Warner Bros. Discovery - Paramount Skydance is making a hostile takeover bid for Warner Bros. Discovery valued at $108.4 billion, which has led Netflix to withdraw from its deal to acquire some of WBD's assets after WBD's board deemed Paramount's offer superior [2][6] - Paramount's new all-cash bid is set at $31 per share, surpassing Netflix's current agreement with WBD, prompting Netflix to state that matching the offer is no longer financially attractive [6] Group 2: Employment Changes in Tech - Block, the fintech company, announced layoffs of over 4,000 employees, approximately half of its workforce, to position itself for long-term growth, resulting in a 20% surge in its shares during extended trading [3][4] - eBay also announced a reduction of about 800 roles, or 6% of its staff, as part of its investments in AI, indicating a trend of staffing changes across the tech industry [4] Group 3: Women's Wealth Growth - Women's cumulative investible assets in the U.S. are expected to nearly double from 2023 to 2030, with a significant transfer of over $100 trillion in wealth anticipated through 2048, marking a substantial shift in wealth control [10]

Core Argument - The article warns of an impending "2028 Global Intelligence Crisis," suggesting that the success of AI may lead to economic disaster rather than prosperity [2][27]. Group 1: AI and Economic Impact - The rise of AI is leading to a "smart deflation" era, where companies cut high-salaried jobs to save costs, pushing displaced workers into low-wage gig markets, resulting in a significant overall income reduction [2][12]. - As income declines, consumer spending will shrink, potentially leading to a financial system collapse, where an abundance of goods cannot be sold because people cannot afford to buy them [2][12]. Group 2: Company Actions - Jack, co-founder of Block, announced a 40% workforce reduction, cutting the company from over 10,000 employees to fewer than 6,000, despite the business being profitable and growing [3][4]. - The decision to lay off 4,000 employees was framed as a necessary response to the changing landscape brought about by AI, which allows for more efficient operations with fewer staff [4][10]. Group 3: Future Employment Landscape - The article suggests that the success of AI does not equate to economic success for workers, as even profitable companies may still lay off employees due to increased efficiency [11][12]. - The transition of high-skilled workers into the gig economy could lead to a decrease in average wages, affecting overall consumer spending power [23]. Group 4: The 2028 Global Intelligence Crisis - The article presents a model where AI leads to the replacement of human income, resulting in a collapse of consumer spending, contrasting with previous technological revolutions that created new jobs [13][14]. - It introduces the concept of "Intelligence Displacement Spiral," where increased productivity from AI does not translate into increased income for workers, leading to a disconnect between production and consumption [15][26]. Group 5: Financial System Implications - The article predicts a potential "prime loan crisis" in 2028, where the financial system may face challenges due to the loss of income among previously high-earning individuals [20][26]. - The shift in income distribution, where profits from AI accrue to a small number of owners rather than workers, could lead to a situation where economic growth does not benefit the broader population [15][26].

European stocks are seen opening little changed on Friday as investors monitor the latest AI headlines and keep a close eye on Middle East tensions. U.S. fintech and digital payments giant Block said it's laying off more than 4,000 employees, or about half of its head count, as part of a restructuring to become "smaller", "flatter," and AI-first. Tech company Dell Technologies achieved record annual and quarterly revenue and said it expects very high sales from its AI servers this year, driven by increased ...

本周，有报道称Meta正计划于2026年下半年在其旗下平台整合稳定币支付功能，并且此次将采用更为审慎的策略，不再发行自有代币，而是通过与成熟稳 定币运营商合作，将美元挂钩的稳定币融入Facebook、Instagram和WhatsApp等应用，从而避免直接承担加密网络运营相关的监管合规负担。 若计划顺利推进，Meta有望借助逾30亿用户规模，推动稳定币在主流社交与支付场景的广泛应用。 Meta曾在2019年宣布推出Libra稳定币计划，旨在创建一个低成本、跨境支付系统，特别是针对全球数十亿未接入银行服务的人群。 该计划最初由一个名为 Libra协会的瑞士非营利组织管理，成员包括Visa、Mastercard、PayPal等大型公司。 Libra被设计为一种稳定币，其价值锚定于一篮子法定货币和政府债券， 以确保价格稳定，避免像比特币那样的波动性。 项目负责人David Marcus后来承认，Libra过于理想化，忽略了政治现实，导致项目在2022年1月正式关闭，剩余资产以1.82亿美元出售给加州银行 Silvergate。 促使Meta重启稳定币计划的最直接、最关键催化剂即是去年《GENUIS ACT》（天才法 ...

Block cut more than 4,000 roles as it shifts to an AI-led operating model.Block’s massive staff cuts dominated the news surrounding its fourth quarter earnings release and conference call Thursday (Feb. 26).By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions .Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS ...