Key Takeaways
- Block (formerly Square) shares jumped over 20% after announcing massive job cuts and raising their profit goals for the year.
- MARA Holdings rose 15% because it is shifting its business from just mining Bitcoin to building data centers for AI.
- CoreWeave fell 11% after reporting a much larger loss than expected and revealing plans to spend $30 billion on equipment.
- The Big Shift: Investors are rewarding companies that cut costs (Block) or find new ways to use their assets (MARA), but they are punishing those with high debt and spending (CoreWeave).
Why MARA and Block Are Surging Today While CoreWeave Tumbles
The financial markets are seeing a major split this Friday as companies linked to digital money and payments soar while one of the biggest names in artificial intelligence hardware takes a hit.
Block Inc. Rockets on Job Cuts and Strong Outlook
Block, the parent company of Cash App and Square, is the star of the morning. The company announced it would be cutting its staff by about 40%, bringing the total number of employees down to under 6,000.
CEO Jack Dorsey told investors that by using smarter technology and AI, the company can do more with fewer people. This “leaner” approach convinced Wall Street that Block will make much more money than previously thought. The company now expects to make over $3 billion in profit for 2026, which is far higher than what experts had predicted.
MARA Holdings Finds a New Life in AI
While MARA is known for “mining” Bitcoin, its stock is climbing 15% today for a different reason. The company just signed a massive deal with Starwood Capital Group to turn its energy-rich sites into data centers.
Even though MARA lost money last quarter because the price of Bitcoin dropped, investors are excited about its “pivot.” Instead of just relying on the volatile crypto market, MARA is now positioning itself as a provider of the “pipes and power” that big AI companies need to run their software.
Core Weave Sinks as Spending Worries Grow
On the flip side, Core Weave, a company that provides the heavy-duty computer power needed for AI, is seeing its stock drop by 11%. On paper, Core Weave is growing fast its revenue more than doubled compared to last year.
However, the “bottom line” told a different story. The company reported a net loss of $452 million for the last three months of the year. What really spooked investors was the news that Core Weave plans to spend between $30 billion and $35 billion on new infrastructure in 2026. This aggressive spending, combined with high interest payments on its debt, has made some traders nervous about how long it will take for the company to become truly profitable.
Comparing Today’s Big Tech Moves
| Company | Stock Move | Main Reason | What to Watch |
| Block (SQ) | +20.8% | Cutting 4,000 jobs; higher profit goals. | Can they keep growing with fewer staff? |
| MARA | +15.0% | New AI data center partnership. | How fast can they build these new centers? |
| Core Weave | -11.0% | Big losses and $30B spending plan. | Will their massive debt become a problem? |
What Happens Next?
As we head into the weekend, the market is sending a clear message: growth is good, but profit is better.
Investors are currently favoring companies like Block that are tightening their belts and MARA that are finding new ways to make money from their existing buildings. Meanwhile, companies like CoreWeave that are in “hyper-growth” mode spending billions to build for the future are being asked to prove they can manage their debt.
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