Recently listed as a public company on May 14, 2026, Cerebras (CRBS) is in the dog house today. Shares will lose 10% or more in today’s trading action.
In the first quarter, Cerebras posted GAAP earnings per share of -$0.22. This is despite revenue growing by 94.4% Y/Y. For Q2, the firm forecasts 88% Y/Y revenue growth. Unfortunately, the revenue of just $193.41 million in Q1 for a firm whose market capitalization is $49.3 billion is too low.
Alphabet (GOOG) will replace Verizon Communications (VZ) on the Dow Jones. It will join the index next Monday. The other tech firms on the DJIA are Apple (AAPL), Microsoft (MSFT), and Amazon (AMZN).
Investors dumped GOOG stock ahead of the announcement. They reacted to the firm losing Nobel Prize winner John Jumper. Jumper will leave Google’s DeepMind, joining Anthropic (ANTHRO) ahead of its initial public offering.
Anthropic swung from losses to profitability very quickly. In February, it touted its superior AI chatbots that could find cybersecurity holes in software. That sent software stocks like Intuit (INTU), ServiceNow (NOW), Snowflake (SNOW), Adobe (ADBE), and Salesforce (CRM) lower.
Software stocks bounced back, only to either retest February’s lows or fall to new 52-week lows.
Investors should not dismiss Anthropic or other AI chatbot capabilities. The software industry faces an operating margin squeeze. They may no longer charge a high subscription rate, while offsetting quarterly costs through non-GAAP-measured stock-based compensation.
