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Top stories today:
- OpenAI said to lay IPO groundwork with $1T valuation target
- Microsoft Cloud drives +18% YoY in revenue in Q1 FY26
- Alphabet tops $100B in Q3 revenue, sees 2025 capex +9% to $93B
- Meta Q3 revenue +26% YoY to $51.2B, net income -83% on Trump bill
- Powell tempers Dec. cut hopes as Fed officials remain split
0. Data and calendar
All values as of 6 AM ET / 3 AM PT, other than S&P500 and NASDAQ close (4 PM ET / 1 PM PT).
All times are ET.
Listen to our AI-generated podcast summarizing todayās newsletter (beware of hallucinations):
1. OpenAI said to lay IPO groundwork with $1T valuation target for H2 2026
$60B could be raised through the offering.
CFO Sarah Friar has reportedly mentioned a 2027 listing to associates, though some advisers believe it could happen sooner.
OpenAI is expected to hit $20B in ARR by end-2025, though losses are mounting.
Elon Musk is building the Tesla Smart Home.
Apple is doubling down with new Face-ID locks and smart displays.
The worldās biggest tech giants are battling for dominance in the $158B smart home market, growing 23% each year.
Big Tech is pouring billionsā the race is officially on.
Just like how Google acquired Nest for $3.2 Billion and Amazon snapped up Ring for $1.2 Billion, investors are hunting for the next smart home breakout.
As Tesla and Apple race ahead, one startup is riding the waveāleading a massive, overlooked category - smart shades. And RYSE is dominating it.
RYSE checks every box:
10 granted patents
Over $12M in revenue
200% annual growth
RYSE is not just another smart gadgetāitās a prime acquisition target in a category with billion-dollar potential.
At just $2.25/share, investors can still get in earlyābefore their next wave of growth.
The next Nest or Ring could be this.
Invest in RYSE now
*Sponsored by RYSE Inc. ($5,000 contracted). Prospective investors should review the offering materials for details, including all risk factors, before making an investment decision. Any investment involves significant risks, including the potential loss of the total investment. This advertisement is not an offer to sell or a solicitation of an offer to buy securities. This Reg A+ offering is made available through DealMaker. This investment is speculative, illiquid, and involves a high degree of risk, including the possible loss of your entire investment. Please read the offering circular before investing in RYSE.
3. Microsoft Cloud drives +18% YoY in revenue in Q1 FY26, operating income +24% to $38.0B
+12% YoY in net income to $27.7B.
$3.1B hit to net income from OpenAI investment, Microsoft said.
+28% YoY in Azure and other cloud services revenue to $30.9B (vs. $30.3B expected).
$79.5Bā$80.6B is the projected revenue for Q2 FY26 (vs. $79.9B expected).
+37% in Azure revenue is expected for Q2.
+28% YTD in Microsoft shares, but stock dipped slightly on news that FY26 capex growth will outpace FY25.
Microsoftās capital expenditures reached a record $34.9B to meet surging AI demand
4. Alphabet tops $100B in Q3 revenue, sees 2025 capex +9% to $93B
