AI giants are showing divergent earnings as the market reassesses valuations, with Anthropic's rapid revenue growth accompanied by a swing to an operating loss due to computing commitments and donation matching, prompting a fresh look at AI expansion costs and revenue pricing.
The U.S. Securities and Exchange Commission received Anthropic's revised listing filing on November 2, disclosing third-quarter revenue of $16.956 billion, well above the second quarter's $11.555 billion and $1.382 billion a year earlier.
However, the company swung from an operating profit of $974 million last quarter to an operating loss of $567 million, mainly attributable to about $5 billion in short-term committed computing costs and $1.96 billion in non-cash donation matching expenses.
Although adjusted operating profit remained $2.463 billion (a measure excluding donation matching and stock-based compensation, with the $5 billion short-term computing still counted as a cost), the adjusted operating margin fell from 19% to 15%, showing revenue expansion alongside a jump in costs; the net loss for the period was $23.291 billion, of which $21.936 billion came from non-cash charges related to fair value changes of convertible bonds and other financial instruments.
U.S. macro market performance was similarly mixed: the S&P 500 fell 0.5%, the Nasdaq Composite dropped 1.1%, while the Dow rose 0.4%, and nearly 70% of S&P 500 constituents advanced.
Tech stocks showed signs of stabilizing after a weak October, but Nvidia (NVDA.US) reversed from a 2.6% intraday gain to close down 1.3%, with late-session tech weakness dragging the index lower, while Brent crude fell 7.6%.
Pressure from Friday's sharp tech selloff continued as investors weighed whether AI capital spending can translate into profits, and after Apple (AAPL.US) and Palantir (PLTR.US) reported earnings after the bell, whether profits can offset valuation and cost concerns became a new test.
Data compiled by Woofun AI shows Apple (AAPL.US) reported fourth-quarter revenue of $114.5 billion for the period ended September 26, up 12% year over year, with net income of $30.7 billion and earnings per share of $2.10, including a 5-cent positive impact from tariff refunds.
iPhone revenue set a same-quarter record and services revenue hit an all-time high, with overall results above analyst expectations.
However, quarterly gross margin was 47.9%, and Apple expects it to fall to 45% to 46% in the December quarter, mainly due to higher memory costs and Siri AI-related expenses.
This was the first quarterly report after new CEO Ternus took over, showing strong revenue alongside margin pressure.
Palantir (PLTR.US) reported third-quarter revenue of $2.313 billion, up 96% year over year and 20% quarter over quarter, surpassing $2 billion in a single quarter for the first time.
U.S. commercial revenue was $984 million, up 148% year over year, exceeding U.S. government business revenue of $953 million.
Palantir raised its full-year 2026 revenue guidance to $8.530 billion to $8.534 billion, implying about 91% year-over-year growth at the midpoint.
Marvell (MRVL.US) announced an all-stock acquisition of Lumentum (LITE.US), with an implied enterprise value of about $115 billion and equity value of about $102.6 billion (about $1,132 per share); each Lumentum share will be exchanged for 4.5 Marvell shares, a 23.9% premium to the October 28 closing price, and the deal still awaits shareholder and regulatory approval.
On the announcement day, Marvell and Lumentum shares fell 12.7% and 18.6%, respectively, putting both optical communications expansion and integration risk on the table.
Abu Dhabi National Oil Company signed a multi-year AI cooperation with OpenAI and G42, with ADNOC saying the partnership will first apply AI agents to oilfield development planning and connect production, refining, logistics and trading operations, with systems deployed at G42's UAE computing facilities and personnel still overseeing important decisions.
OKX launched a Mastercard-supported stablecoin payment card in the United States, allowing eligible U.S. users to spend USDC, USDT and USDG in OKX Pay, with up to 10% cash back on eligible USDG transactions.
The New York Stock Exchange plans to add on-chain shareholder governance services to its tokenized securities platform, with Broadridge (BR.US) providing shareholder communications, proxy voting and digital transfer agent capabilities, and the platform will only launch after regulatory approval.
Nvidia, Costco and Nike joined the list of opponents to the OKX-ICE tokenized stock trading plan, and media tallies show 43 of the 62 companies initially proposed for listing have objected, about 69%.
HSBC (HSBC.US) will establish an AI and emerging technology research institute in Hong Kong, planned to operate in early 2027, with initial directions including AI training, security and anti-fraud, as well as post-quantum cryptography and blockchain, while Hong Kong University of Science and Technology will serve as the main academic partner.
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