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Avocado, toast?

Meta reportedly delays the launch of its new AI model because it’s just not that good

Meta’s AI leaders have “instead discussed temporarily licensing Gemini to power the company’s AI products, though no decisions have been reached,” according to The New York Times.

Luke Kawa

Here’s The New York Times with something that Meta CEO Mark Zuckerberg probably wishes had never seen the light of day:

Per the NYT, the social media giant is postponing the release of its new foundational AI model, originally planned for this month, until at least May, citing three people with knowledge of the matter.

The model, which is code-named “Avocado,” reportedly did not perform as well as offerings from Google, OpenAI, and Anthropic “on internal tests for reasoning, coding, and writing.”

In what’s seemingly a concession to Google’s prowess, Meta’s AI leaders “had instead discussed temporarily licensing Gemini to power the company’s AI products, though no decisions have been reached,” according to the report.

Gemini 3.0’s launch was extremely warmly received by the public and the stock market, resulting in a halo effect that saw companies tied to its supply chain soar while firms with lots of exposure to OpenAI sank.

Meta’s prior model, Llama 4, was also plagued by delays and performance issues. Soon thereafter, the firm began bolstering its bench with a high-profile hiring spree, including onboarding Scale AI founder Alexandr Wang after investing $14.3 billion into the startup. Earlier this year, Meta CTO Andrew Bosworth told the press that these new models under development were “very good.”

The social media giant’s capital expenditure over the past two years has totaled nearly $107 billion, as it and other so-called hyperscalers and foundational model companies race to build better AI models and monetize their new capabilities.

But based on this report, aggressively accumulating talent and deploying compute does not ensure that your models will be best-in-class.

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SpaceX gets a wave of bullish ratings from Wall Street analysts

SpaceX received more than a dozen positive analyst calls on Tuesday — including from major Wall Street banks — as they initiate coverage on Elon Musk’s space and AI company.

SpaceX went public on June 12 at a $2.2 trillion valuation, the largest debut in history. While the company hasn’t yet posted a profit, it seems to have convinced Wall Street that it will get there and grow its valuation on the way.

Of the at least 17 analysts that gave a rating on Tuesday, all but one gave it a “buy” or “outperform” rating. MoffettNathanson was "neutral."

The ratings come as SpaceX joined the Nasdaq 100 index, a benchmark tech-heavy basket of companies that underpins millions of portfolios. The inclusion adds built-in demand for the stock from index funds and ETFs.

Still, SpaceX fell more than 5% on Tuesday amid a broader sell-off, and is currently effectively flat from its opening price of $150 a share.

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Nike sinks to lowest level since 2014 after warning of “challenged” sales environment in Q4 report

Did Nike do it?

Investors had a mixed reaction after the global sports apparel company reported its fourth quarter earnings on Tuesday after the bell. Shares initially rose 5% as Nike beat out Wall Street expectations amid a hefty tariff refund bonus. However, the stock then sank to its lowest level since August 2014 in postmarket trading.

Here are the Q4 numbers:

  • Revenue of $11.0 billion (estimate: $10.8 billion).

  • Adjusted earnings per share of $0.20 (estimate: $0.12).

Ahead of this report, Nike warned that results would be flattered by a one-time tariff refund (now estimated at roughly $0.52 per share for the bottom line). That gave the company an extra cushion in snapping its streak of seven quarters of year-over-year profit declines.

Over the past year, the company had been punished by tariffs on imported goods, stagnant consumer spending, and increasing competition from other footwear brands like New Balance, Adidas, and Hoka.

Outgoing CFO Matthew Friend deemed it an “increasingly challenging operating environment, where sell-through remains challenged.”

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