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Block Bets Big on AI, Workforce Slashed
28 Feb
Summary
- Block shares rose after announcing workforce reduction to focus on AI.
- Duolingo shares fell due to AI disruption fears and a weak outlook.
- FIGS Inc. exceeded fourth-quarter expectations with strong earnings and revenue.
Block Inc. experienced a surge in its stock value after announcing a substantial workforce reduction, signaling a strategic pivot towards artificial intelligence. The financial technology firm also elevated its gross profit forecast for the full year, exceeding analyst expectations.
Conversely, Duolingo Inc. faced a significant stock decline. The language-learning software company's shares dropped sharply due to a full-year outlook that fell short of market expectations. Concerns over potential AI-driven disruptions have led to a year-to-date decrease of 33% for the stock, with several financial institutions downgrading their ratings.
Meanwhile, FIGS Inc. demonstrated robust performance, with its shares climbing. The company reported a fourth-quarter that significantly outperformed Wall Street's predictions, posting earnings per share of 10 cents against a 2-cent estimate and revenue of $201.9 million, more than 22% above projections.
