FactSet

Etsy to Cut 12% of Workforce After Q2 Results

Etsy announced a reorganization cutting about 220 roles (≈12% of staff) to simplify structure, flatten teams, speed decision‑making and position the company for growth rather than as a pure cost‑cutting exercise. Management said it will continue investing in AI/ML for recommendations, search and digital assistants; CEO Kruti Patel Goyal noted the reductions were not driven by AI even as AI changes how work is done. The cuts—mainly in product and engineering—leave roughly 1,600 employees and carry about $35 million of restructuring costs, mostly severance and benefits. The move accompanied Q2 results: revenue of $668.3 million (up just over 6% excluding Depop), marketplace sales growth ~9.3%, and a net loss of about $46.7 million. Etsy has sold Depop to eBay and is refocusing on its core marketplace, including a beta app in ChatGPT.

Uber issues weak Q3 bookings and earnings guidance

Uber reported second-quarter earnings roughly in line with expectations but issued weaker-than-expected guidance for the third quarter. Q2 EPS was $0.81 (in line) and revenue was $14.19 billion (slightly below the $14.24 billion consensus). Total bookings in Q2 were $58 billion, above StreetAccount estimates, but Uber’s Q3 bookings midpoint of $59.25 billion and EPS guidance of $0.84–$0.88 missed analysts’ averages. Uber said net income rose to $2.39 billion and highlighted mobility and delivery growth. The company reiterated large investments in autonomous vehicles, expecting to commit more than $10 billion, and announced a $14.8 billion agreement to acquire Germany’s Delivery Hero. Regulators in London cleared a step for Wayve to operate robotaxis with Private Hire Vehicle licenses.

Earnings Shake Up 'Magnificent Seven' Investment Thesis

This CNBC analysis explains how recent earnings reports fractured the investment thesis around the 'Magnificent Seven' tech stocks. Vanguard data shows the S&P 500 has outperformed the Mag 7 year-to-date, and investors are rotating into a broader set of infrastructure, energy and chip companies inside an "AI complex" that has roughly doubled in value this year. Individual members of the Mag 7 are diverging: Microsoft reported strong Azure growth, Meta raised spending forecasts and disappointed investors, Alphabet missed EPS while boosting capex, and Amazon raised its capex outlook. The article highlights differentiated performance across Apple, Nvidia and Tesla and notes rising competition in AI chips and shifts in capital allocation among major cloud and AI players.