Table of Contents

• HP

• Nvidia

• Rhode Beauty

• xAI and Telegram

Top Stories Today

HP

HP posted second-quarter revenue slightly above expectations, but earnings and future guidance fell short, partly due to the financial impact of recent U.S. tariffs. The company reported $13.22 billion in revenue, up 3% year over year, but earnings per share came in below forecasts. Shares dropped 15% following the results. HP’s leadership highlighted efforts to shift manufacturing to countries like Vietnam, India, and Mexico to offset higher trade-related costs, with expectations to fully address these expenses by the fourth quarter. The company also lowered its earnings outlook for the rest of the year.

Nvidia

Nvidia posted strong quarterly results, surpassing expectations for both profit and revenue, fueled by surging demand for its AI-focused data center products, which grew 73% from the prior year. Despite facing export restrictions on certain chips bound for China, which impacted sales and margins, the company reported a 69% overall revenue increase and a 26% rise in net income. Its gaming, automotive, and professional visualization segments also showed notable growth. Nvidia forecasts continued momentum, driven by global appetite for AI infrastructure, though sales guidance was slightly tempered by geopolitical headwinds.

Rhode Beauty

E.l.f. Beauty announced plans to acquire Hailey Bieber’s skincare line, Rhode, in a deal valued at up to $1 billion. The purchase, which includes $800 million upfront and an additional $200 million contingent on future performance, aims to expand E.l.f.’s presence in premium skincare. Rhode, launched in 2022, has quickly gained market traction with $212 million in annual revenue. Following the news, E.l.f.’s stock surged over 25%. The acquisition comes amid broader company challenges, including potential margin pressure from rising tariffs, as E.l.f. sources a significant portion of its products from China.

xAI and Telegram

Elon Musk’s AI company, xAI, has agreed to pay messaging platform Telegram $300 million to integrate its Grok chatbot, according to Telegram CEO Pavel Durov. The arrangement, which Durov described as a one-year partnership, also grants Telegram half of the subscription revenue generated through the platform. While Musk later commented that no formal contract had been signed, Durov stated Telegram users would soon access advanced AI tools. The deal comes as Telegram surpasses one billion monthly users and seeks additional funding, even as the company faces regulatory scrutiny in Europe.

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