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Nikita Bier envisions a personalized, AI-built GTA-like world as new AI models threaten studios by cutting costs and intensifying competition.
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Alibaba's AI Cloud revenues surged 45% year-over-year with AI products marking 12 consecutive quarters of triple-digit growth, supported by its full-stack AI strategy spanning proprietary chips and Qwen models. However, aggressive capital expenditure of RMB67.68 billion caused adjusted EBITA to fall 30% and free cash flow to turn negative. While existing investors should hold given strong fundamentals and a robust balance sheet of RMB474.5 billion, new investors should await a better entry point due to near-term margin pressures and premium valuation.
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Roblox stock has declined 44% in 2026 following implementation of stricter safety features that impacted user engagement and missed earnings guidance. However, the platform maintained 10% year-over-year growth in daily active users (123 million DAUs in Q2), with U.S. and Canada DAUs up 6% YoY, suggesting the platform retains long-term viability despite near-term headwinds.
Unity stock rose 2% after Raymond James upgraded U to Outperform with a $54 price target, citing its new Google AI partnership.