Tesla TSLA and BYD BYDDF expanded their presence in the European auto market in May as consumer demand for electric vehicles helped lift overall new-car registrations across the region.
The European Union recorded 955,013 new passenger vehicle registrations during the month, an increase of 3.2% from a year earlier. Growth moderated from April's pace, but the market remained on an upward trajectory. France and Italy delivered the strongest gains among the bloc's largest markets, while Germany posted a modest increase.
Tesla posted May sales of 21,767 vehicles in the EU, raising its market share to 2.3% from 0.9% a year ago. BYD also continued to gain momentum, with its share of registrations reaching 2.7%, compared with 1.1% in the prior-year period.
The broader shift toward electrified transportation remained evident. Battery-electric vehicles represented one-fifth of all new registrations in the EU, up from 15.3% a year earlier. Hybrid-electric models accounted for the largest portion of the market, while the combined share of petrol and diesel vehicles continued to decline.
During the first five months of 2026, EU new-car registrations increased 4.0%, supported by continued growth in electric and hybrid vehicle adoption.
Tesla shares fell sharply on Tuesday after US regulators opened an investigation into a fatal crash in Texas involving one of the company's vehicles, adding fresh scrutiny to the automaker's driver-assistance technology.
The stock dropped about 5% in early trading as investors weighed the implications of the investigation against an already challenging backdrop for technology stocks.
The broader market also came under pressure. The S&P 500 fell 1%, while the Nasdaq Composite declined 1.5% as a technology selloff intensified. The Dow Jones Industrial Average traded around the flatline.
Technology stocks outside the semiconductor sector showed more resilience, with companies, including Microsoft and Amazon, advancing alongside defensive names such as Walmart, Procter & Gamble, and Johnson & Johnson.
The immediate catalyst for Tesla's decline appeared to be an announcement from the National Highway Traffic Safety Administration late Monday that it had opened a special crash investigation into a fatal accident involving a Tesla Model 3.
The crash occurred in Katy, Texas, near Houston, where a Tesla vehicle struck a home, killing 76-year-old Martha Avila.
According to Harris County authorities, the driver, Michael Butler, told investigators he had been using Tesla's partially automated driving systems when the vehicle left its lane and crashed into the residence.
The National Highway Traffic Safety Administration said it would examine the incident as part of a special investigation.
Tesla executives publicly disputed aspects of the driver's account following the crash.
Chief Executive Elon Musk questioned whether Tesla's Full Self-Driving system could have been responsible for the accident.
"This crash makes no sense," Musk wrote on X.
"FSD drives slowly through neighborhood streets and this was a high speed crash!" he added.
Tesla Vice President of Autopilot and AI Ashok Elluswamy also commented on the incident.
"In this case, the driver manually overrode self-driving by pressing the accelerator all the way to 100% of the accel pedal in this residential area," Elluswamy wrote in a response on X.
"They reached a speed of 73 mph during the crash, and had the accelerator pressed even after the crash."
The competing accounts remain under investigation and have not been independently verified.
Tesla's owner manuals state that Full Self-Driving (Supervised) requires drivers to remain attentive, monitor the road, and be prepared to take control of the vehicle at any time.
Deliveries outlook remains constructiveDespite the regulatory overhang, Wall Street analysts remain focused on Tesla's upcoming second-quarter delivery results.
UBS reiterated its Neutral rating on Tesla and maintained a $364 price target.
The firm raised its second-quarter delivery forecast to 405,000 vehicles from a previous estimate of 380,000 units.
That projection would represent a 5% increase from a year earlier and a 13% increase from the first quarter.
UBS noted that the estimate sits slightly above the Visible Alpha consensus forecast of 402,000 deliveries.
The bank said buyside expectations currently range from 400,000 to 420,000 vehicles, placing its forecast toward the lower end of investor expectations while acknowledging the potential for upside if Tesla finishes the quarter strongly.
Beyond vehicle deliveries, UBS also expects continued strength in Tesla's energy business.
The firm forecasts energy storage deployments of 13.4 gigawatt-hours during the quarter, representing growth of 40% year-over-year and 53% sequentially.
For investors, Tuesday's decline highlighted the tension between Tesla's improving near-term operating outlook and the ongoing regulatory and legal scrutiny surrounding its driver-assistance technologies, which remain central to the company's long-term autonomous driving ambitions.
Tesla (TSLA +0.22%) stock tumbled 6%.1 through 3:15 p.m. ET Tuesday, one week before Tesla is expected to report its Q2 deliveries number -- and just hours after Swiss megabanker UBS announced it's sticking with only a "neutral" rating on Tesla shares ahead of the report.
Image source: Tesla.
What UBS thinks about Tesla A "neutral" rating implies that this analyst is giving Tesla a kind of shrug and a pass on its current valuation. But as StreetInsider.com reports, UBS analyst Joseph Spak thinks Tesla's stock price could decline after deliveries are reported. His price target for the stock, $364, is 10% below Tesla's Monday closing price.
(So maybe Spak should really be advising investors to sell Tesla.)
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What should investors do with Tesla now? Why isn't Spak telling investors to sell? For one thing, the analyst is raising estimates for Q2 deliveries from 380,000 electric cars sold to 405,000, representing 5% year-over-year growth.
Problem is, even 405,000 units -- if this is the right number -- could still miss consensus forecasts for the quarter, which Spak estimates range from 400,000 to 420,000 (so 410,000 at the midpoint). This sets up a scenario in which Tesla might do better than Spak expected, but still worse than what most people hoped for in Q2. And this is a scenario that could, in fact, cause Tesla's stock price to decline.
All this said, there's still one scenario in which holding Tesla stock might make sense. Spak points out that the company's Energy Generation and Storage business could report up to 40% sales growth in Q2 -- eight times better than Automotive.
Whatever happens with car deliveries next month, considering that Tesla's been earning twice as much on Energy sales as it has on Automotive lately, this could end up making Tesla a winner on earnings day.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
With SpaceX (SPCX) now settling in its second full week on public markets, @morningstar's Seth Goldstein turns his attention to Tesla (TSLA) and its struggling EV business. He sees deliveries improving as the Mag 7 company hits the gas on robotaxi production.
The "Magnificent Seven" are some of the largest tech-focused companies by market cap: Nvidia, Alphabet, Apple, Microsoft, Amazon, Meta Platforms (META 0.18%), and Tesla (TSLA +0.22%).
But Space Exploration Technologies (SPCX 0.03%) is making the case for why the Magnificent Seven as a category may be outdated.
Although in its brief period on the public market, SpaceX briefly surpassed Microsoft and Amazon in market cap, the stock has since fallen by 31% from its intraday high. It closed at $154.60 per share on June 22 -- up just 3% from its opening trading price of $150.
Even so, its market cap of about $2 trillion clears Tesla at $1.5 trillion, and Meta Platforms at $1.4 trillion. SpaceX is now the seventh-most-valuable company in the world, behind Nvidia, Alphabet, Apple, Microsoft, Amazon, and Taiwan Semiconductor. But is the company sending shock waves across the market a better buy than Tesla or Meta Platforms?
Image source: Getty Images.
The case for SpaceX over Tesla Tesla's profitability has taken a massive hit in recent years as sales growth in its electric vehicle and energy storage businesses has slowed. The company is no longer tethering its long-term growth to the passenger electric vehicle market. Tesla's $25 billion capital expenditure plan for this year is centered on its humanoid robots (Optimus), fully autonomous robotaxis (Cybercabs), the Tesla Semi, and its lithium refining and battery manufacturing infrastructure.
Meanwhile, SpaceX has a dominant share of the commercial space launch industry: It has been responsible for launching over 80% of the mass that the world has put into orbit each year since 2023.
SpaceX is also a major player in artificial intelligence, particularly after its merger with xAI earlier this year. That position will only expand with its $60 billion acquisition of Anysphere -- the maker of the AI coding tool Cursor -- which it announced last week. AI will likely be the main driver of SpaceX's near- to medium-term revenue growth. Analysts at Morgan Stanley forecast that SpaceX's revenue will hit $330 billion in 2030, and anticipate 57% of that will come from AI.
SpaceX has a bold plan to build a massive Gigasat factory in Bastrop, Texas, to produce AI data center satellites at high volume. About 100 miles away, SpaceX, Tesla, and Intel (INTC 0.64%) are collaborating on Terafab, which is expected to be the world's largest semiconductor fabrication plant. Terafab's goal is for its annual production capacity to eventually teach 1 terawatt (1,000 GW) of AI compute capacity -- although the project is still in the early stages, it is expensive, and it faces no shortage of supply chain challenges.
CEO Elon Musk has asserted that the ability to scale up an orbital constellation of AI data centers is mostly limited by a lack of AI computing hardware. This is why building Terafab is so critical to SpaceX's orbital data center plan.
If Tesla were still generating consistently high-margin free cash flow and had significantly more cash and cash equivalents on its balance sheet than debt, it would have a clear advantage over SpaceX. But with both companies spending full throttle in pursuit of big ideas, the better buy between them will really come down to which one's ideas will pay off enough to justify its high valuation.
Tesla's Cybercabs will face no shortage of competition from the autonomous ride-share offerings of Alphabet-owned Waymo and other self-driving vehicle companies. And its Optimus robots will have to compete with the designs of numerous established robotics companies like Boston Dynamics. By contrast, no rival comes close to being a true peer with SpaceX in the areas where it is pursuing its bold plans.
So if I had to choose between these two growth stocks, I would buy SpaceX over Tesla. But the best course of action for retail investors now may be to keep SpaceX on their watch lists until it shows measurable progress in large-scale manufacturing of AI satellites and compute, outlines the costs of launching these satellites (which will have many times the mass of its Starlink satellites), and addresses the light pollution consequences of keeping these AI satellites in sun-synchronous orbits, among other issues.
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One of the best values on the market Like SpaceX and Tesla, Meta is on a spending spree. Only in Meta's case, Wall Street doesn't like it. The Facebook parent has been the second-worst-performing Magnificent Seven stock year to date, ahead of only Microsoft.
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Meta recently raised its 2026 capex budget to a range of $125 billion to $145 billion. The top of that range is roughly double the $72 billion it spent in 2025. With capex growing faster than revenue, Meta's profitability and margins will further compress, which may concern some investors, especially considering that Meta's spending is mainly on AI data centers for its internal use rather than to lease to external customers.
This is a fundamentally different approach than the strategies of hyperscalers like Amazon, Microsoft, and Alphabet -- which are cloud providers with clear blueprints for monetizing their AI infrastructure investments. So investors will want to see how Meta can deliver a clear return on investment from its AI spending, such as through increased advertising revenue or higher levels of engagement on Instagram, Facebook, Messenger, and WhatsApp.
Meta has yet to prove that its AI investments are worth the price. What's more, Meta has a history of pouring money into projects that don't have a clear path to profitability. After all, Facebook changed its name to Meta Platforms in 2021 because it thought the metaverse would be the next big thing. The company's Reality Labs segment is responsible for its research and development in the metaverse, augmented and virtual reality, and it makes products like the Meta Quest virtual reality headset. Between 2021 and 2025, Reality Labs reported a net operating loss of $77 billion.
Even with Meta's arguably excessive spending and the poor track record of its Reality Labs unit, it's still a better buy than SpaceX or Tesla right now. Meta is simply too cheap to ignore, sporting a forward price-to-earnings ratio of just 17.9.
TSLA PE Ratio (Forward) data by YCharts.
For context, the S&P 500 (^GSPC +0.33%) has a forward P/E of 22.5.
SpaceX and Tesla could outperform Meta over the ultra-long term, but their bold bets could also backfire. In contrast, Meta doesn't need to actively spend on AI to be a cash cow.
Shares of Tesla Inc NASDAQ: TSLA are trading around $410 this week, holding on to most of the gains they’ve logged since hitting a multi-month low in late April. The broader bull case has been well documented, from full self-driving and robotaxis to Optimus and the longer-term robotics ambition.
Tesla Today
$382.60 +0.99 (+0.26%)
As of 10:25 AM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$288.77▼
$498.83P/E Ratio349.45
Price Target$405.06
But in recent weeks, a new and potentially more significant narrative has been quietly building in the background. That narrative is the growing consensus that Tesla and SpaceX are heading toward a merger, and the latter’s blockbuster IPO last week has brought it into even sharper focus. SpaceX has gone officially public, and the timing has triggered a fresh round of commentary from Wall Street's most vocal Tesla bulls.
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While Tesla’s retail investors have been busy debating robotaxi rollouts, the conversation among serious institutional voices has shifted.
The SpaceX IPO Changes EverythingLast Friday, SpaceX listed on the Nasdaq in what's considered the biggest IPO in history. It was oversubscribed fourfold; retail investor demand alone topped $100 billion, and firms like BlackRock were looking to invest at least $5 billion themselves.
But beyond the headlines, the IPO has fundamentally changed the conversation around Tesla in a way that hasn't quite sunk in yet. Up until last week, the prospect of a Tesla-SpaceX merger was a fascinating theoretical exercise built on speculation and Musk's track record.
However, now there's a publicly traded counterparty with a real market valuation, a real share structure, and a real set of public shareholders. The merger thesis has gone from being hypothetically interesting to a tangible scenario that the market can actually start pricing in.
Why Ives Thinks It's ComingThat brings us to the comments from Wedbush's Dan Ives, one of Wall Street's most consistently bullish voices on Tesla. Speaking to Bloomberg ahead of the SpaceX listing last week, Ives put the odds of a Tesla-SpaceX merger within the next year at 80% and framed it as the logical next step in a broader strategy that Elon Musk, the founder and CEO of both companies, has been quietly executing for years.
His reasoning is worth exploring properly. Ives sees the merger not as a corporate vanity project, but as part of a deeper play around AI and data. In his words, the eventual combination is about consolidating "the broader plan, specifically when it comes to AI data and all under that Musk ecosystem associated from a control perspective."
He went further, arguing that SpaceX itself should be viewed less as a traditional space company and more as a "data AI play" with the potential to host data centers in space within three or four years.
That reframing matters because it directly challenges the way many investors currently think about both companies. If Ives is right, then everything from full self-driving to robotaxis to Starlink will eventually form part of a single, integrated AI and data empire that's far more valuable as one entity than as two.
Musk Has Done This BeforeWhat gives the merger thesis genuine credibility isn't just Ives's commentary; it's the pattern that comes before it. Earlier this year, Tesla invested in Musk's xAI, which had acquired X (formerly Twitter). SpaceX has since acquired xAI, meaning Tesla shareholders already have a substantial indirect link to SpaceX sitting on their balance sheet, without a formal merger having even taken place.
That's not a coincidence; it's an intentional and methodical chain of transactions. Each step has brought Tesla and SpaceX closer together operationally and financially, quietly laying the foundations for something much larger.
Add in the joint Terafab semiconductor fabrication facility currently under development, which will manufacture chips for both companies, and the picture of two organizations being deliberately stitched together becomes hard to ignore. Now that SpaceX is publicly listed, the final structural barrier to a formal combination has effectively been removed.
A Long Shot Worth WatchingAll that being said, the risks are real, and there are still plenty of reasons to be cautious. Both companies are trading at stretched multiples in their own right, and merging them introduces meaningful execution risk.
Tesla, Inc. (TSLA) Price Chart for Wednesday, June, 24, 2026
Prediction markets, which have become increasingly recognized for their forecasting accuracy, are still placing the odds of a merger before May 2027 at around 50%, well below Ives's call. There's also the not-so-small matter of the legal scrutiny and shareholder battles that any deal of this scale would inevitably attract.
Still, the direction of travel feels clearer than it did even a month ago. Musk has a long track record of eventually delivering on ideas that initially seemed implausible, and the SpaceX IPO might have just handed him the final piece of the puzzle.
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On June 22, Space Exploration Technologies (SPCX 0.03%) had its worst session as a public company -- falling 16.4% to close at $154.60 per share. That puts SpaceX down 31.5% from its intraday high of $225.64 per share.
Here are four reasons why SpaceX should merge with Tesla (TSLA 0.27%), and why it would make the growth stock more appealing for long-term investors.
Image source: Getty Images.
1. Simplification If you've tuned into recent presentations by SpaceX and Tesla CEO Elon Musk, you've probably noticed that at times it's difficult to distinguish which efforts fall under SpaceX versus Tesla.
While Tesla has been a public company for longer, SpaceX has been the one slowly gobbling up Musk's other efforts. In 2025, xAI bought social media platform X. Then, earlier this year, SpaceX bought xAI. But the bulk of Musk's robotics, energy storage, and autonomous vehicle ideas are under Tesla.
Merging Tesla with SpaceX would bring all these ideas (and creativity) under one umbrella.
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2. Terafab collaboration In March, Elon Musk gave a presentation on a collaborative effort between Tesla, xAI, and SpaceX (Intel joined in April) to build the world's largest chip plant called Terafab. In the presentation, Musk discussed why Tesla, xAI, and SpaceX are builders and have already accomplished once impossible feats. Again, this is yet another nod that "we" refers to the collective efforts of Musk-led companies.
SpaceX is designing its AI compute satellites to operate on Nvidia graphics processing units and has a reference design for Alphabet's Tensor Processing Units (TPUs). But AI compute capacity will be a limiting factor in scaling AI satellite production. xAI built the world's first gigawatt-scale AI training cluster, and SpaceX believes it is the only company capable of building orbital AI compute at scale. But that will depend on compute availability and SpaceX's ability to launch heavy payloads. Similarly, Tesla's autonomous driving technology and Optimus robots are incredibly compute-intensive.
Bringing at least a portion of the chip supply in-house rather than relying on external suppliers is in the interest of SpaceX and Tesla. Putting Terafab under one entity instead of separate companies could speed up its construction and simplify its financing. Musk expects Terafab to be around 100 million square feet, which is 10 times the size of Tesla's Giga Texas factory. One terawatt of compute output per year is double the current U.S. annual consumption. So if successful, Terafab could ensure that SpaceX and Tesla can pursue their long-term goals without relying on the chip industry to increase production.
3. xAI is a key input for Tesla's growth xAI and its Grok large language models (LLMs) are already integrated with Tesla's self-driving technology and energy storage platforms. In March, Musk posted on X about a collaboration between Tesla and xAI called Macrohard or Digital Optimus. Digital Optimus will run on Tesla's AI4 chip and use Grok LLMs. If successful, Optimus could transform digital workflows rather than being solely a robotics solution for automating repetitive physical tasks.
So, while SpaceX's acquisition of xAI makes a ton of sense for SpaceX scaling AI data centers, Tesla is also heavily dependent on xAI. Merging SpaceX and Tesla would give xAI a straightforward path to support both companies, rather than having Tesla serve as both a partner and a customer.
4. Energy storage in space SpaceX's boldest idea is to build constellations of AI compute satellites in space. In theory, these orbital data centers would harness the power of free, predictable solar energy at radiation levels higher than those at Earth's surface.
In its Form S-1 filing with the Securities and Exchange Commission, SpaceX said it could launch millions of AI satellites in sun-synchronous orbit (SSO). SSO means orbiting Earth's poles so that satellites pass over locations at the same local time each day. For example, a point along the equator every 100 minutes. This route provides predictability, but it can also cause significant light pollution when satellites pass over dark skies at night. Most current Starlink satellites don't use SSO.
Tesla could theoretically help SpaceX meet the power-hungry needs of orbital AI data centers without operating in a route that would be invasive to nighttime sky viewing for the naked eye and astronomers. SpaceX AI satellites equipped with Tesla energy storage technology could allow them to avoid SSO and spend more time in Earth's shadow at night, reducing light pollution and interference with observatories. However, energy storage systems would likely add weight to payloads, not to mention battery life issues.
Still, SpaceX and Tesla would likely benefit from collaborating on hardware systems and energy storage for AI compute satellites.
Merger updates could be coming soon While investors solely interested in SpaceX's vision, rather than Tesla's, and vice versa, may balk at a potential merger, it ultimately makes the most sense for both companies.
The reasons extend far beyond focusing Musk's attention on one company. SpaceX and Tesla are collaborating on Terafab, and Tesla's energy storage solutions could prove valuable for SpaceX. SpaceX-owned xAI is deeply ingrained in Tesla's autonomous vehicle and humanoid robot efforts.
Investors should pay close attention to SpaceX's upcoming earnings call to see if Musk discusses a potential merger and what it could mean for SpaceX and Tesla investors.
Elon Musk is no longer a trillionaire after sharp declines in SpaceX and Tesla shares wiped out more than $150 billion from his fortune and dragged his net worth below the $1 trillion mark.
According to Bloomberg's Billionaires Index, Musk's wealth stood at $957 billion on Wednesday, down from the historic milestone he crossed earlier this month after SpaceX's blockbuster initial public offering propelled him into the trillionaire club.
The reversal comes amid a broad selloff in technology stocks and growing investor concerns over the sustainability of massive spending on artificial intelligence and ambitious long-term projects.
SpaceX had become the centrepiece of Musk's fortune after its June 12 market debut.
The rocket company was briefly valued at nearly $3 trillion as retail investors flocked to the stock, attracted by Musk's vision of building space-based data centres and eventually establishing a human presence on Mars.
However, the rally has cooled rapidly.
SpaceX shares plunged 16% on Monday and ended the session on Tuesday at $156, only modestly above their opening trading price of $150 and well below the record high of $225 reached just a week ago.
The IPO itself was priced at $135 a share, meaning early investors remain in profit despite the recent declines.
The weakness has cut SpaceX's market capitalisation from a peak of around $2.99 trillion to just over $2 trillion, erasing almost $1 trillion in value in little more than a week.
Monday's decline alone erased more than $152 billion from Musk's net worth, according to Forbes estimates.
The decline has coincided with increasing scrutiny of SpaceX's valuation and its long-term business plans.
Ahead of its public listing, the company's regulatory filings revealed that it posted a loss of $4.9 billion in 2025.
Its artificial intelligence segment also incurred capital expenditures of $12.7 billion, underscoring the enormous financial commitments required to pursue its expansion plans.
Some investors have begun questioning whether the company's moonshot projects can justify its valuation.
The upcoming expiry of the lockup period, when early investors and insiders are permitted to sell their shares, is also emerging as a key test for the stock.
Danni Hewson, head of financial analysis at AJ Bell, said the recent volatility was not unusual for newly listed companies.
"SpaceX might have seemed charmed after its record-breaking IPO and subsequent rally, but it's come down to earth with a bump over the past couple of days, with shares at one point falling below the opening price on its market debut."
She noted that newly public companies often experience periods of volatility as investors reassess valuations and decide whether to lock in gains.
"Post-IPO stocks often enter a period of volatility as the market gets to grips with the new entrant, some investors rush to cash out, and others assess at what price they are willing to jump in."
"For a stock like SpaceX, a lot of decision-making might have been emotional and based on the anticipation of huge leaps forward in space exploration and utilisation, but investing should be something treated with clear eyes and patience, even when such huge numbers are involved."
Despite the recent decline, SpaceX remains by far Musk's most valuable asset.
According to Bloomberg data, his SpaceX holdings are worth about $744 billion and account for nearly 80% of his total net worth.
Musk's fortune has also been hit by weakness in Tesla shares.
The electric vehicle maker fell 5.8% on Monday as technology stocks broadly sold off amid concerns over elevated valuations and heavy spending on artificial intelligence infrastructure.
His stake in TSLA is currently valued at approximately $158 billion.
Like all market fortunes, Musk's wealth remains closely tied to the performance of his companies and could rebound if SpaceX shares recover.
Despite dropping below the $1 trillion threshold, Musk remains comfortably the world's richest person.
Bloomberg estimates that his lead over the second-richest individual, Google co-founder Larry Page, is roughly $660 billion, a gap larger than the entire fortunes of several of the world's wealthiest individuals combined.
Space Exploration Technologies (SPCX 0.03%) is finally public. Tesla (TSLA +0.22%) stock has been public for 16 years. Both companies were set up and are CEO'd by Elon Musk, but SpaceX is clearly the newer, shinier toy today -- and a lot of investors are probably wondering whether the time has come to put Tesla on a shelf and take out SpaceX to play with instead.
And so the question today: Should you ditch Tesla stock in favor of SpaceX?
Image source: The Motley Fool.
SpaceX and Tesla: the similarities Broadly speaking, both SpaceX and Tesla are "tech stocks." Both companies were established in their current forms by tech wunderkind and world-first trillionaire Elon Musk, who leads both companies as CEO.
SpaceX spends a lot of time working on space (as one might expect) and the corollary industry of satellite communications. As its prospectus makes clear, however, SpaceX sees its greatest future revenue opportunity in artificial intelligence. Out of the company's entire $28.5 trillion "total addressable market" (TAM), says Elon Musk, $26.5 trillion will come from building AI infrastructure, providing AI services, and selling AI subscriptions.
Tesla is a little different.
From its origins as an electric car company, Tesla has branched out into at least two tangentially related fields. First, in solar power and energy storage through its 2016 acquisition of SolarCity, and more recently, in robotics with the unveiling of Optimus in 2022.
Of these three fields, Energy Generation and Storage is currently Tesla's most profitable business, with a 30% gross profit margin, according to data from S&P Global Market Intelligence. But electric cars offer the greatest promise through subscriptions for autonomous driving software, sales of self-driving cars, and/or transportation-as-a-service. In public statements, Musk has predicted that robotic vehicles could drive Tesla's market capitalization to $5 trillion or more -- while a market for 1 billion robots per year could turn Tesla into a $25 trillion company!
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SpaceX and Tesla: the differences Broadly speaking, perhaps the biggest similarity that SpaceX and Tesla share (well, aside from their CEO) is that they're both valued very much on future prospects -- or what investors hope their future prospects might be -- AI riches in the case of SpaceX, and self-driving cars and humanoid robots at Tesla.
What's perhaps most curious, though, is that while both SpaceX and Tesla are priced based on pie-in-the-sky prospects that are incredibly difficult to value, the two stocks are priced very differently today.
The more mature company by far, Tesla today boasts just under $98 billion in annual sales, has been profitable since 2019, and earns an operating profit margin of 4.9% today. Tesla is self-funding, generating positive free cash flow of $7 billion annually, and it boasts enormous cash reserves to fund future growth -- nearly $30 billion more cash than debt on the balance sheet.
Contrast all this with SpaceX. Only five years younger than Tesla, SpaceX is still trying to figure out what it wants to be when it grows up. (Rockets? Satellites? AI satellites launched by rockets?) SpaceX generated just $19.3 billion in revenue over the past year (one-fifth of Tesla's haul), and lost nearly half that amount -- $8.7 billion. Thanks to a recent successful IPO, it's got more cash than Tesla does -- more than $100 billion -- but also more than $30 billion in debt. And SpaceX needs the cash cushion, because it's burning nearly $20 billion per year.
And yet, at $1.5 trillion in market capitalization, Tesla stock currently costs 25% less than SpaceX, which has a $2 trillion market cap!
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What this means for investors I'm the last person to argue that Tesla stock is a buy at 367 times trailing earnings. That said, it's pretty clear that SpaceX stock is even more overvalued than Tesla. For that matter, if, like most investors, you're valuing both stocks on their future prospects, Tesla's pie-in-the-sky projections are no less ambitious than SpaceX's.
That's two good reasons not to ditch Tesla stock in favor of SpaceX.
Now here's a third: According to the SpaceX IPO Prospectus, SpaceX already shares "engineering resources, intellectual property, and infrastructure across Tesla and SpaceX," and plans to "deepen [its] strategic collaboration with Tesla."
To me, this sounds like Elon Musk is contemplating merging SpaceX -- which has already merged with X and xAI -- with Tesla as well. In such a transaction, the richer SpaceX stock would almost certainly be used to buy the cheaper Tesla stock.
Indeed, that may be the strongest argument yet for not selling Tesla stock: SpaceX just might want to buy Tesla.
HomeInvestingStocksYour Digital SelfYour Digital SelfUber is quietly writing $500 million checks to lock in robotaxis as Waymo threatens to leave it behindPublished: June 24, 2026 at 7:50 a.m. ET
If you own Tesla stock, much of what you are paying for above the value of a carmaker is a bet on autonomy and artificial intelligence that has barely reached the income statement: full self-driving software, the Optimus robot and a robotaxi network.
The robotaxi is the nearest-term and most testable piece of that bet, and this spring it amounted to about 20 driverless Tesla Model Y vehicles in Austin, Dallas and Houston. Value the car business the way investors price any other automaker, and it accounts for only a fraction of the stock; the rest is the market’s bid on that future, a premium no ordinary carmaker could carry. What is new is that the bet is finally testable against operating data rather than projections.
SAN FRANCISCO, June 24, 2026 (GLOBE NEWSWIRE) -- Sunrun (Nasdaq: RUN), Renew Home, and Tesla (Nasdaq: TSLA), today announced an agreement to deliver more than 16 gigawatts1 of flexible energy capacity to hyperscalers and utilities. The agreement establishes a framework for three of the largest players in home energy to aggregate millions of existing demand side and energy exporting devices in states across the country into local, turnkey solutions that require no additional hardware, software, interconnection, water, or land usage for offtaking parties.
Deployable in months, not years, this capacity-as-a-solution framework creates headroom on the existing grid by freeing up transmission capacity, easing congestion on distribution infrastructure, and extending the duration and depth of available capacity, all while helping American households lower energy bills, earn rewards, and power through outages.
Together, the companies would form the largest distributed power plant in the country — capable of injecting net new electrons onto the grid from home batteries paired with solar generation while simultaneously shifting household load during peak demand hours. The combined 16-gigawatt resource draws dispatchable capacity from hundreds of thousands of home battery systems operated by Sunrun and Tesla, alongside flexible peak capacity from more than 8 million smart thermostats and devices managed by Renew Home.
“The grid of the 1800s cannot power the innovation of 2026,” said Sunrun CEO Mary Powell. “Americans deserve innovation that does not create unnecessary energy costs. When data centers are asked to throttle down operations during the most expensive and stressful hours of the day, we can activate our distributed power plants to help provide them the power they need while also protecting American families from footing the bill for costly new infrastructure.”
An Untapped Opportunity Requires a Bold Solution
In Virginia — the heart of Data Center Alley — the companies already have more than 300 megawatts of capacity readily available for immediate deployment. By 2030, that figure is expected to grow to at least 500 megawatts, rivaling some of the largest generation facilities in the state, as installations of home batteries and smart thermostats ramp.
The companies are capable of building multiple gigawatts of additional capacity across the country. Given the unprecedented race for power, hyperscalers interested in securing these local energy resources are encouraged to engage immediately, as available capacity will be allocated on a first-come, first-served basis.
Together, the companies have also committed to provide capacity to PJM’s proposed Reliability Backstop Process. If accepted, PJM would immediately unlock over a gigawatt of capacity today, with more deployable in the years ahead for peak shaving, locational grid relief, and fast-responding ancillary services.
“Renew Home convened this strategic coalition because we believe hyperscalers are motivated to drive down costs through this transition and that this group of residential-focused energy companies can help them accomplish that goal,” said Ben Brown, Chief Executive Officer at Renew Home.
Speed to Power Through Distributed Resources
As electricity demand increases and tech leaders align with the Presidential Ratepayer Protection Pledge, the need for a technology neutral energy strategy to support cost-effective economic growth is critical.
Hyperscalers are racing to bring AI compute online while interconnection queues lengthen and energy costs increase. The grid is sized for peak hours that occur only a fraction of the year, leaving expensive infrastructure underutilized most of the time, a cost ultimately borne by every ratepayer.
New analysis from The Brattle Group finds that better utilization of the existing power grid could reduce U.S. electricity bills by $110 billion to $170 billion over the next decade and accelerate data center interconnection by several years. Sunrun, Renew Home, and Tesla designed this framework to capture exactly that dual benefit: hyperscalers come online faster, and costs go down for everyone.
“The stakes are clear. America’s grid faces mounting pressure from data centers, electrification, and manufacturing growth that no single infrastructure solution can solve fast enough,” said Colby Hastings, Senior Director of Residential Energy at Tesla. “Sunrun, Renew Home, and Tesla believe that a huge piece of the answer is already in place — in the batteries, thermostats, and electric vehicles inside millions of American homes, waiting to be put to work.”
A Win-Win-Win For Customers, Communities, and Economic Development
Residential customers, data centers, and utilities can all benefit from the improved scale, speed, and cost effectiveness this framework activates. Key aspects include:
Better grid utilization, lower rates for everyone: When customers choose to shift how they use energy during peak periods, it allows grid operators to focus on more cost-effective infrastructure — and that means lower energy costs for all ratepayers, not just owners of distributed energy resources.Innovative customer offers and experiences: Sunrun, Renew Home, and Tesla are building new customer offerings and AI-driven tools to lower the cost of solar-plus-storage systems and expand access to reliable home energy and more ways to participate in grid programs.Savings and rewards for households that have enabled these devices: The companies will unlock new ways to help households manage their energy costs and earn rewards for participating in grid-supporting programs.Latent existing capacity: Gigawatts of capacity and customer savings sit on the sidelines today in the form of idle home batteries, HVAC systems, and EVs. The three companies, in partnership with data centers and utilities, can unlock this latent capacity immediately.Speed to new capacity: Distributed capacity through residential installations is the fastest way to meet immediate system needs without expensive new poles and wires or additional land usage. This agreement between three of the largest players in home energy can create a structure to stand behind commitments on development timelines.National coverage: Meeting the needs of hyperscalers requires scale across several key geographic areas. Sunrun, Renew Home, and Tesla have the largest combined residential energy footprint in the country, with deployable capacity and utility relationships in most major electricity markets.Joint market development: Data center and utility procurement teams are stretched thin. This new joint capacity delivery framework can give them a single, trusted source for gigawatts of flexible capacity by cutting through the complexity of managing multiple resource developers and accelerating the path from need to deployment.
For more information about working with Sunrun, Renew Home and Tesla for flexible capacity and household savings, visit www.vppcapacity.com.
About Sunrun
Sunrun Inc. (Nasdaq: RUN) is America’s largest provider of home battery storage, solar, and home-to-grid power plants. As the pioneer of home energy systems offered through a no-upfront-cost subscription model, Sunrun empowers customers nationwide with greater energy control, security, and independence. Sunrun supports the grid by providing on-demand dispatchable power that helps prevent blackouts and lowers energy costs. Learn more at www.sunrun.com.
About Renew Home
Renew Home brings households and energy providers together to help households save energy and earn rewards while offering energy providers cost-effective, reliable grid capacity at scale. With its home energy management platform, Renew Home empowers millions of households to save and shift their energy use to times when it's cleaner, less expensive or better for the grid. Renew Home VPP is building the country’s largest virtual power plant solution for energy providers, with more than 6 million connected households. Renew Home is a Sidewalk Infrastructure Partners (SIP) company. Learn more at www.renewhome.com.
About Tesla
Tesla Energy Operations, Inc. is the sustainable energy division of Tesla, Inc. that develops, manufactures, sells and installs photovoltaic solar energy generation systems, battery energy storage products and other related products and services to residential, commercial and industrial customers.
Media Contacts
Wyatt Semanek
Sr. Director, Corporate Communications [email protected]
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995, including statements regarding Sunrun’s, Renew Home’s, and Tesla’s framework to pursue distributed energy resource opportunities; the potential availability, timing, scale, dispatchability, and benefits of aggregated capacity; potential participation in PJM’s proposed Reliability Backstop Process and other utility or market programs; potential opportunities with utilities, hyperscalers, data centers, and other large energy customers; anticipated customer participation, customer benefits, grid benefits, cost savings, and ratepayer impacts; potential deployment timelines; and potential new customer offerings, software capabilities, and AI-driven tools.
Forward-looking statements are based on current expectations, estimates, assumptions, and beliefs, and may be identified by words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “target,” “estimate,” “may,” “will,” “could,” “potential,” “designed to,” “seek,” “pursue,” and similar expressions. These statements are not guarantees of future performance and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied, including customer enrollment and authorization; device availability, performance, interoperability, and dispatch accuracy; utility program design and participation; PJM and other market rules, acceptance, implementation, and settlement processes; regulatory approvals and changes in regulatory frameworks; interconnection, telemetry, data access, cybersecurity, and privacy requirements; the ability of the parties to integrate operational capabilities while maintaining appropriate information controls; supply chain availability and costs; macroeconomic conditions; changes in utility rate structures, net metering policies, incentive programs, and tax rules; partner performance; market demand from utilities, hyperscalers, data centers, and other customers; and other risks described in Sunrun’s filings with the Securities and Exchange Commission.
Forward-looking statements speak only as of the date of this press release. Sunrun undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law.
1 Battery Storage MW calculation is based on the installed battery rated capacity. HVAC MW calculation is based on the 1-hour peak load shift potential from connected smart HVAC systems and thermostats across Renew Home’s HVAC partners.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/c86e0633-6933-4ed6-b257-920ccc2a54ae
Sunrun, Renew Home, and Tesla Team Up to Deliver Gigawatts of Fast, Flexible Power Together, the companies offer 16.8 GW of flexible capacity across the nation's largest data center m...
Sunrun shares are powering higher. What’s behind RUN gains? The AgreementUnder the framework, Sunrun, Renew Home, and Tesla will aggregate millions of existing home energy devices—including home battery systems, smart thermostats, and electric vehicles—into local, turnkey power solutions for data centers and utilities.
The combined 16-gigawatt resource draws dispatchable capacity from hundreds of thousands of home battery systems operated by Sunrun and Tesla, alongside flexible peak capacity from more than 8 million smart thermostats and devices managed by Renew Home. The framework requires no additional hardware, software, interconnection, water, or land usage—and is deployable in months, not years.
In Virginia, the companies already have more than 300 megawatts of capacity available for immediate deployment, expected to grow to at least 500 megawatts by 2030. The companies have also committed to provide capacity to PJM’s proposed Reliability Backstop Process, which if accepted would unlock over a gigawatt of capacity immediately.
“The grid of the 1800s cannot power the innovation of 2026,” said Mary Powell, CEO of Sunrun. “When data centers are asked to throttle down operations during the most expensive and stressful hours of the day, we can activate our distributed power plants to help provide them the power they need while also protecting American families from footing the bill for costly new infrastructure.”
Sunrun Shares ClimbRUN Price Action: At the time of publication, Sunrun shares are trading 19.28% higher at $15.28, according to data from Benzinga Pro.
Image via Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs
The family of a woman killed when a Tesla crashed into her home, allegedly while in self-driving mode, is suing Elon Musk's company and the driver.
Jennifer Barbour, the daughter of the 76-year-old victim, Martha Avila, filed the lawsuit alongside her husband.
It alleges a "design defect" in Teslas and negligence against both Tesla and the driver, Michael Butler.
According to the lawsuit, the victim was standing in the front room of her brick home at around 8pm on Friday when the car smashed into it, causing her to be "pinned in the wreckage".
She was airlifted to a local hospital where she was pronounced dead, according to the Harris County Sheriff's Office.
Image: Pic: Harris County Constable Precinct 5 The driver said he was using the car's self-driving system when it crashed, according to the sheriff's office, which said he was cooperative and didn't show any signs of intoxication.
Although Tesla did not immediately reply to a request for comment from Sky's partner newsroom, NBC, Elon Musk did respond to a news story about the crash on Monday night.
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Referring to the vehicle's full self-driving mode, he wrote on X: "FSD drives slowly through neighborhood streets, and this was a high-speed crash!"
Ashok Elluswamy, vice president of AI software at Tesla, defended the vehicle's systems.
"In this case, the driver manually overrode self-driving by pressing the accelerator all the way to 100% of the accel pedal in this residential area," he wrote on X on Monday.
"They reached a speed of 73 mph during the crash, and had the accelerator pressed even after the crash."
Image: Pic: Harris County Constable Precinct 5 NBC has seen a copy of the lawsuit, which alleges that the Tesla was in "Autopilot" mode and that the system has "a history of known danger".
It cites a 2023 Washington Post analysis of government data that "identified at least 17 fatal incidents linked to Tesla's Autopilot".
"The actions and inactions of Defendant Butler were done with reckless disregard for a substantial risk of severe bodily injury," the lawsuit alleges.
Although no criminal charges have been filed, the crash is under investigation, according to the sheriff's office, with the National Highway Traffic Safety Administration also launching a special investigation.
The Barbour family thanked first responders in a statement released by their lawyers.
"Your quick response, professionalism, and kindness have been a significant reason that we have been able to deal with this unimaginable situation," they said.
"Thank you for all that you do to help families like ours during the hardest moments of our lives."
The lawsuit seeks more than $1m (£760,100) in damages.
Key Takeaways Tesla shares fell after a fatal Model 3 crash triggered a special investigation by U.S. safety regulators.TSLA inked a deal with NatPower to deploy 25 GWh of battery storage projects across Italy and the U.K.Overseas delivery trends are improving and FSD gains approvals in five European countries. Tesla (TSLA - Free Report) shares fell more than 5% yesterday after U.S. safety regulators opened a special investigation into a fatal crash involving a Model 3 in Texas. The driver claims Tesla’s partially automated driving system was engaged when the vehicle veered out of its lane and crashed into a home, killing a 76-year-old woman. CEO Elon Musk has disputed the implication that Full Self-Driving (FSD) was at fault, noting that the system is designed to operate cautiously on neighborhood streets and describing the incident as a high-speed crash.
The latest probe arrives at a sensitive time for Tesla. Musk has spent the past year repositioning TSLA’s investment story around autonomous driving, robotaxis and FSD. Tesla is now not being valued just as an automaker, but as a future leader in autonomous mobility. As a result, an accident linked to driver-assistance systems has the potential to raise fresh questions about the company's long-term vision.
Image Source: Zacks Investment Research
The investigation is in its early stages, and regulators have not reached any conclusion. Yet the market's reaction suggests growing concerns about Tesla's autonomous-driving ambitions. The bigger question is whether investors are focusing too much on a single incident while overlooking improving delivery trends, continued strength in the energy business, and steady progress toward broader FSD adoption. While Tesla stock is definitely not an obvious buy today, isn’t selling the stock also a bit premature now?
The Overlooked Strength of Tesla's Energy BusinessWhile the latest safety investigation grabbed headlines, investors may have overlooked a significant positive development for Tesla's energy business. The company signed a multiyear agreement with NatPower to deploy 25 GWh of battery storage projects across Italy and the U.K. The first phase is expected to carry a construction value of $4 billion to $5 billion, with Tesla supplying its Megapack battery systems, engineering services and Autobidder software platform. NatPower ultimately aims to expand the partnership beyond 100 GWh of storage capacity, creating a potential revenue opportunity exceeding $15 billion over the next two decades.
Tesla's energy segment has emerged as one of the company's most resilient businesses. Tesla deployed a record 46.7 GWh of energy storage in 2025, up 50% year over year, and expects deployments to increase again in 2026. To support rising demand, the company is expanding production capacity through a new Megapack factory near Houston and plans to launch its next-generation Megapack 3 system later this year.
The business is also highly profitable. Tesla's energy division generated a gross margin of 39.5% in the last quarter, making it the company's highest-margin segment. While competition and policy risks remain, the energy business continues to provide Tesla with a valuable growth engine.
Overseas Strength Brightens TSLA’s Q2 Delivery OutlookThe company's delivery outlook is improving. Demand trends have strengthened across several key international markets. In China, Tesla's retail sales rose 22.5% year over year in May, ending a two-month decline. Europe was even more encouraging, with France reporting its best May on record and registrations soaring more than 655%. Strong gains were also seen in Norway, Spain, Denmark, Portugal and Sweden. Despite softer U.S. demand, robust international performance is helping offset the weakness.
Reflecting this trend, the Zacks Consensus Estimate for Tesla's second-quarter deliveries is pegged at roughly 397,500 vehicles, up both sequentially and year over year.
TSLA’s FSD Expansion ContinuesMusk expects unsupervised FSD to be “widespread” in the United States by 2026-end. Apart from the United States, Tesla's FSD (Supervised) ambitions are gaining momentum in Europe. The Netherlands became the first European country to grant provisional approval for FSD in April, followed by Lithuania and Estonia. More recently, Denmark and Belgium also cleared the technology, bringing the total number of approving EU countries to five.
Tesla is now pursuing broader EU-wide approval. While some hurdles remain—most notably concerns from Sweden regarding speed-limit compliance—regulatory momentum is clearly moving in Tesla's favor. Finland could also approve the system before an EU-wide decision is expected later this year, further expanding Tesla's footprint.
Tesla also launched FSD in China last month. It comes at a time when competition in autonomous driving technology is heating up rapidly with XPeng (XPEV - Free Report) , BYD Co Ltd (BYDDY - Free Report) and Geely Automobile (GELHY - Free Report) aggressively investing in next-generation smart-driving systems.
Why Long-Term TSLA Investors Should Stay PutTesla is clearly not a buy. The company faces real challenges, including shifting robotaxi timelines, uncertainty around Optimus commercialization and management's warning that free cash flow could turn negative as it ramps up spending on AI and autonomous-driving initiatives.
The stock has declined 15% year to date. And its valuation still leaves little room for error.
Image Source: Zacks Investment Research
The bears are getting louder, but the market may be underestimating Tesla's strengths. The energy business continues to grow rapidly, delivery trends are showing signs of improvement, and FSD is gaining regulatory traction in key markets. Most importantly, Tesla still possesses a powerful brand, industry-leading technology capabilities, and multiple long-term growth platforms.
With Wall Street expecting revenue and earnings growth to resume in 2026 and 2027, existing investors should retain the stock. The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
If you’ve ever inherited a stock portfolio, a rental property, or even a single share of grandma’s old utility company, the IRS hands you a quiet gift most heirs never notice. It’s called the step-up in basis, and it can wipe out decades of capital gains tax in a single moment. The rule resets the cost basis of inherited assets to their fair market value on the date of the original owner’s death, meaning the embedded gains that built up over a lifetime can vanish for tax purposes the second the asset passes to you.
The Reveal: Decades of Gains, Erased Here’s how it works. Say your father bought Coca-Cola (NYSE:KO | KO Price Prediction) stock in 1975 for $2,000. By the time he passes in 2026, it’s worth $200,000. If he had sold it the day before he died, he’d owe long-term capital gains tax on roughly $198,000. But because you inherited it, your new cost basis is the value on the date of his death. Sell it the next morning for $200,000 and your taxable gain is zero. The IRS treats the appreciation that occurred during his lifetime as if it never happened, at least for income tax purposes.
The Proof: IRC Section 1014 This isn’t a loophole or a workaround. It’s written into 26 U.S. Code §1014, which states that the basis of property acquired from a decedent is generally the fair market value of the property at the date of the decedent’s death. Suze Orman puts it bluntly when explaining the mechanics: “Because when they inherit it from you, they get a step up in cost basis. If it goes from 100,000 to 500,000, they inherit it. Their cost basis now is 500,000.” The rule has survived every recent attempt to repeal it, and as of 2026 it remains fully intact.
Who Qualifies, Who Doesn’t The step-up applies to almost any capital asset passed at death: individual stocks, ETFs, mutual funds in taxable brokerage accounts, real estate, collectibles, and ownership stakes in private businesses. It applies whether you inherit through a will, a trust, or a transfer-on-death designation. It does not apply to assets inside tax-deferred retirement accounts like traditional IRAs, 401(k)s, or annuities, because those carry ordinary-income tax treatment on the way out. Gifts given while the original owner is still alive don’t qualify either. The donor’s basis carries over, and the gain comes with it.
Community property states (including California, Texas, Arizona, Washington, and a handful of others) get an even sweeter version: when one spouse dies, both halves of jointly held community property step up. In common-law states, only the deceased spouse’s half gets the reset, as Orman notes: “You each have $150,000 cost basis on that property. One of you dies, the other inherits your half, the new half. You get a step up in basis on their half.”
How to Actually Use It Get the date-of-death fair market value in writing. For publicly traded securities, the basis is typically the average of the high and low trading price on the date of death. Ask the brokerage for a stepped-up cost basis statement. For real estate or private business interests, hire a qualified appraiser. An IRS-defensible appraisal is your paper trail. Update the cost basis with the custodian before you sell. Brokerages don’t always do this automatically, and a missed step-up means you’ll overpay tax. If you plan to hold, consider whether to sell appreciated positions soon after inheriting. With the 10-year Treasury yielding 4.43%, reallocating inherited stock into bonds or cash can be done without triggering a tax bill on the embedded gain. Long-term capital gains rates still apply if the asset continues appreciating after you inherit it. Those rates are 0%, 15%, or 20% depending on your income. The Catch The step-up only triggers at death. Transfer the asset early, through a gift, a joint account retitling, or a quitclaim deed to a child, and you destroy the benefit. The original basis tags along. The other trap: an alternate valuation date exists (six months after death), but the executor must elect it on the estate tax return, and the choice is irrevocable. Finally, while federal estate tax exemptions are high in 2026, several states impose their own estate or inheritance taxes that the step-up does not erase. Ask your custodian for the date-of-death valuation in writing the moment the account transfers. That single document is what locks in the savings.
Retirees watching grocery bills climb need income that grows faster than the receipt. Coca-Cola (NYSE:KO | KO Price Prediction) sells a recession-resistant product in nearly every country on earth, and its pricing power is doing exactly what income investors want it to do. With headline PCE at 3.77% and services inflation at 3.49%, the question I want to answer is simple: is this dividend actually safe?
Dividend Snapshot Metric Value Annual Dividend (run rate) $2.12 Dividend Yield 2.51% Consecutive Years of Increases 64 years Most Recent Increase 3.9% (February 2026) Dividend King Status Yes Payout Ratios Leave Room Once You Strip Out a One-Time Charge Metric Value Assessment Earnings Payout Ratio 69% Elevated but typical 2025 FCF Payout Ratio 166% Distorted by fairlife payment 2026E FCF Payout Ratio 72% Healthy Forward OCF Coverage 1.6x Adequate Coca-Cola paid $8.8 billion in dividends in 2025 against free cash flow of $5.296 billion, which on the surface looks alarming. The wrinkle: 2025 FCF absorbed the fairlife contingent consideration payment, a one-time outflow. Management guided 2026 free cash flow to roughly $12.2 billion, pushing the FCF payout ratio back near 72%. With EPS of $3.00 and a dividend run rate of $2.12, profits cover the payout with room to spare.
The Balance Sheet Provides a Buffer Cash sits at $10.574 billion, total liabilities fell 7.41% YoY to $68.483 billion, and shareholders’ equity grew 28.36% to $33.633 billion. EBITDA of $16.7 billion against that debt load keeps leverage manageable, and the stock’s beta of 0.35 tells you how the market views the cash flow profile.
64 Years of Increases, With Growth Re-Accelerating Year Annual Dividend YoY Change 2026 $2.12 +3.9% 2025 $2.04 +5.2% 2024 $1.94 +5.4% 2023 $1.84 +4.5% 2022 $1.76 +4.8% The 5-year dividend CAGR sits near 4.8%, which has comfortably tracked headline inflation. There have been no historical cuts.
Management Sounds Confident New CEO Henrique Braun told investors on the Q1 2026 call: “We’ve had a strong start to the year. Our performance this quarter reflects our unwavering focus on staying close to the consumer, executing locally and managing complexity.” Management also raised comparable EPS growth guidance to 8% to 9%. That is the tone of a team funding a dividend with confidence.
The Verdict: Very Safe Dividend Safety Rating: Very Safe. The forward FCF payout sits near 72%, the balance sheet carries $10.574 billion in cash, and the streak hit 64 consecutive years. Coca-Cola screens as a low-beta inflation hedge with global pricing power for income-focused portfolios. I’d be cautious only if currency reverses sharply or if a deeper consumer slowdown stalls volume growth beyond the 3% global unit case pace. For retirees, this is one of the more reliable dividend checks in the market.
Investors interested in Consumer Staples stocks should always be looking to find the best-performing companies in the group. Is Coca-Cola (KO - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Coca-Cola is one of 173 individual stocks in the Consumer Staples sector. Collectively, these companies sit at #14 in the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector groups by measuring the average Zacks Rank of the individual stocks within the groups.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Coca-Cola is currently sporting a Zacks Rank of #2 (Buy).
Within the past quarter, the Zacks Consensus Estimate for KO's full-year earnings has moved 0.7% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
Our latest available data shows that KO has returned about 13.6% since the start of the calendar year. Meanwhile, stocks in the Consumer Staples group have gained about 6.6% on average. As we can see, Coca-Cola is performing better than its sector in the calendar year.
Altria (MO - Free Report) is another Consumer Staples stock that has outperformed the sector so far this year. Since the beginning of the year, the stock has returned 19.9%.
In Altria's case, the consensus EPS estimate for the current year increased 1.3% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Coca-Cola belongs to the Beverages - Soft drinks industry, a group that includes 18 individual stocks and currently sits at #72 in the Zacks Industry Rank. This group has gained an average of 11.4% so far this year, so KO is performing better in this area.
In contrast, Altria falls under the Tobacco industry. Currently, this industry has 8 stocks and is ranked #194. Since the beginning of the year, the industry has moved +7%.
Investors interested in the Consumer Staples sector may want to keep a close eye on Coca-Cola and Altria as they attempt to continue their solid performance.
There's something satisfying about getting paid to own a piece of a business. You buy shares, the company sends you money every so often, usually once per quarter, and you don't have to lift a finger.
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Coca-Cola (KO +1.10%) has been doing exactly that for its shareholders since before your grandparents were born. The beverage giant has paid dividends for over a century and raised them for 62 consecutive years, making it a Dividend King (a title reserved for companies with at least 50 consecutive years of annual dividend increases).
So how many Coke shares would you actually need in order to collect $1,000 a year in dividends?
The basic math Let's do some napkin math. Coca-Cola pays $0.53 per share, per quarter. That's $2.12 per share annually. The stock trades at roughly $80 per share today, June 17. That works out to an annual dividend yield of 2.65%.
So you're looking for total dividend payouts of at least $1,000 a year. That would take roughly 472 shares, currently worth $37,760 on the open market.
These figures assume Coca-Cola's dividend levels will stay unchanged for years to come. But I already mentioned that the company insists on boosting the payouts every year. The income stream has grown at an average annual rate of 4.2% over the last decade, adding up to a 51.5% increase in yearly dividend checks. The company has every incentive to keep this trend going, so your $1,000 payout in 2026 should rise to approximately $1,217 in five years. That's without buying another share.
Image source: The Motley Fool.
Why Coke's dividend is reliable Coca-Cola isn't just a familiar logo; it's a cash machine. The company posted $13.1 billion in net income on $47.9 billion in revenue last year. That's a 27% net margin, meaning Coke keeps more than a quarter of every dollar it brings in. The balance sheet shows $9.8 billion in working capital and manageable debt levels.
Coke's secret is an asset-light business model. Coca-Cola makes the concentrate and manages the brand. A global network of bottling partners handles the heavy lifting of manufacturing and distribution. Less factory equipment means less capital tied up, which frees up more cash for dividend growth.
KO Total Return Level data by YCharts
The long-term picture Unlike bonds or savings accounts, dividend stocks keep you invested in the market. Coca-Cola shares have returned 76% over the past 10 years, on top of the dividend income.
Let's say you bought 100 Coke shares a decade ago, an investment of around $4,500. That investment would be worth $8,029 today, plus the dividends. If you reinvested the payouts in more Coke shares through a dividend reinvestment program (DRIP), you'd have a total value of $11,020 and about 138 shares in your portfolio.
Again, you need about 472 Coke shares to fuel $1,000 of annual dividends at today's rates, but the math gets easier over time. This figure is just a starting point for reliable wealth-building.
June is a natural moment for mid-year reflection. Short-term traders are squaring quarterly books, but long-term investors should be doing something different: stepping back to ask which businesses have already produced multi-decade compounding, and whether the moats that drove those returns are still intact today.
Past performance does not guarantee future returns; however, durable competitive advantages tend to persist, and the three names below have spent decades widening theirs.
Here are three generational compounders that have made patient shareholders rich, and that still look positioned to do it again.
Apple (NASDAQ: AAPL) Apple (NASDAQ:AAPL | AAPL Price Prediction) is the textbook example of a moat that keeps widening. The stock trades around $298 as of June 19, with a market cap of roughly $4.28 trillion. Over the trailing 10 years, shares are up more than 1,185%, and the stock is up 48% over the past year. Apple is also Warren Buffett’s largest equity position, sitting at about 22% of the Berkshire Hathaway portfolio per the Q1 2026 13F.
The bull case is the installed base and the recurring revenue that sits on top of it. In Q2 FY26, Apple reported EPS of $2.01 against a $1.94 estimate, on revenue of $111.18 billion, up 17% year over year. iPhone revenue jumped to $56.99 billion, Services hit $30.98 billion, and the active device base now exceeds 2.5 billion. Management lifted the dividend 4% to $0.27 quarterly and authorized a fresh $100 billion buyback. Analyst consensus is 63% bullish, with an average target of $312.72.
The caveat: valuation is full at 35x trailing earnings, and Apple remains exposed to global trade frictions and supply-chain concentration. A long-term holder is paying a premium for durability, and that premium is real.
Coca-Cola (NYSE: KO) Coca-Cola (NYSE:KO) is the dividend-compounder benchmark. The shares trade around $80, up 15% year to date and 75% over the past decade on an adjusted basis. Coca-Cola has been a core Berkshire holding since the late 1980s, and the company just extended its dividend streak to 63-plus consecutive years of annual increases, putting it firmly in Dividend King territory.
The recent fundamentals back up the moat story. In Q1 2026, Coca-Cola posted EPS of $0.86 against an $0.81 estimate on revenue of $12.47 billion, up 12% year over year. Organic revenue grew 10%, unit case volume rose 3%, and Coca-Cola Zero Sugar volume climbed 13% across every geography. Operating margin expanded to 35% from 33%, and free cash flow surged to $1.76 billion. Management raised 2026 guidance to comparable EPS growth of 8% to 9% and free cash flow near $12.2 billion. The current quarterly dividend sits at $0.53, up from $0.51 in 2025.
The risk: a $960 million BODYARMOR trademark impairment last quarter, ongoing IRS tax litigation, and a roughly 4% revenue headwind from divestitures including the pending Coca-Cola Beverages Africa sale. None of those threaten the franchise; they do compress near-term reported growth.
Microsoft (NASDAQ: MSFT) Microsoft (NASDAQ:MSFT) is the third leg of this stool, and arguably the most interesting today because it has actually pulled back. Shares trade around $379, down 20% year to date and 21% over the past year, even though the 10-year return remains around 660%. Microsoft has compounded enormously since the early 1990s on a split-adjusted basis, and the AI/cloud cycle reads like the next chapter rather than the end of one.
The numbers are doing the talking. In Q3 FY26, Microsoft reported EPS of $4.27 against a $4.07 estimate on revenue of $82.89 billion, up 18% year over year. Intelligent Cloud revenue grew 30% to $34.68 billion, Azure expanded 40%, and the AI business crossed a $37 billion annualized run rate, up 123% year over year. Commercial remaining performance obligations, essentially contracted backlog, hit $627 billion. CEO Satya Nadella framed it bluntly: “Our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year.” Analyst consensus is 95% bullish with a target of $561.39.
The caveat: capital intensity. CapEx ran $30.88 billion in the quarter, up 84% year over year, and the market is openly debating whether AI infrastructure spending will earn an adequate return. That debate is the entire reason the stock is on sale.
What to Watch From Here The thread connecting Apple, Coca-Cola and Microsoft is a competitive position that survives recessions, technology shifts, and management changes. The next decade will test each moat in different ways: Apple against trade and regulatory pressure, Coca-Cola against shifting consumer preferences, Microsoft against the return-on-AI-investment question. For long-term investors thinking past June, those are the right questions to be asking.
Over the past week or so, a significant number of investors have been selling off shares of Coca-Cola (KO +1.10%). On June 10, Coca-Cola shares were trading at $83.59 per share, but since then, the stock price has fallen about 5% to around $79.29 per share.
It is a bit of a head scratcher because there really has been no direct action or company catalyst that led to the sell-off. In fact, the stock has performed well year to date, up about 13% even after the sell-off.
Two factors likely contributed to Coca-Cola's stock price dropping.
Image source: Getty Images.
One, Coca-Cola hit a 52-week and all-time high on June 10, closing at $83.59. The P/E ratio had risen to around 25, with the forward P/E at 24. That's not high for tech and growth stocks and is below average for the S&P 500, but for a consumer staple like Coca-Cola, it's viewed as being on the high side. The forward P/E is as high as it's been in more than a year.
Two, investors were likely rotating back out of more stable consumer staples like Coca-Cola and back into tech stocks as part of a risk-on cycle. The shift to tech and growth stocks follows excitement around the recent Space Exploration Technologies IPO, anticipation for upcoming OpenAI and Anthropic IPOs driving more interest in AI, easing of global tensions between the U.S. and Iran, and investors buying back in following a steep tech sell-off the previous week on fears of high valuations.
Coca-Cola hits the spot The renewed excitement around SpaceX, future AI IPOs, and lower market valuations are all somewhat speculative catalysts. While the OpenAI and Anthropic IPOs will certainly lead to increased demand for AI infrastructure stocks like Nvidia, Micron Technology, and Broadcom, investors need to realize that valuations remain ridiculously high, despite the brief pullback.
The cyclically adjusted P/E ratio, or Shiller ratio, is still at a historically high level of 41, the highest since the dot-com boom in 1999. Even with catalysts like the IPOs and easing of hostilities, that valuation is unsustainable.
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So, should we believe the hype? Probably not. That's not to say you should sell off your tech stocks en masse, because many are reasonably valued, like Nvidia and Micron. But it does mean you should be aware of the valuation risks and maintain a healthy allocation to consumer staples and high-yield dividend stocks in your portfolio, like Coca-Cola.
While its valuation ticked up a bit, Coca-Cola is still reasonably valued and is one of the best dividend stocks you can buy, with a yield of 2.65% and a track record of raising its dividend annually for 63 straight years.
Some 88% of analysts rate Coca-Cola stock as a buy with a median price target of $88 per share, which suggests an 11% return. But that return will be even higher with the dividend reinvested. Given the state of the market, it is not time to go risk-off, and it's not time to dump Coca-Cola shares.
Key Takeaways Coca-Cola's Q1 organic revenues rose 10%, driven by a 3% unit case volume and 2% price/mix growth.Pricing actions added roughly four points to price/mix, partly offset by unfavorable mix in several markets.Coca-Cola delivered volume growth across all segments and extended value-share gains to 20 quarters. Pricing remains an important growth lever for The Coca-Cola Company (KO - Free Report) , but its revenue story is becoming increasingly balanced between pricing and volume gains. Organic revenues increased 10% in the first quarter of 2026, supported by a 3% rise in unit case volume and 2% price/mix growth. Management noted that pricing actions contributed roughly four percentage points to the price/mix, although this was partly offset by an unfavorable mix across several markets.
The company's ability to sustain pricing reflects the strength of its brands and sophisticated revenue growth management capabilities. Coca-Cola continues to adjust pricing, packaging and promotional strategies based on local market conditions while protecting consumer affordability. Management emphasized that affordability remains a key pillar of the company's growth strategy, particularly for lower-income consumers facing economic pressure. In North America, Coca-Cola expanded affordable single-serve and multi-serve offerings to retain consumers within its franchise rather than sacrificing volume.
Management expects a more balanced growth algorithm throughout 2026, with the volume and price/mix contributing relatively equally to the top-line expansion. While pricing remains embedded in Coca-Cola's strategy, the company is increasingly prioritizing consumer recruitment, market share gains and transaction growth. Management suggested that quarterly fluctuations may occur, but Coca-Cola remains committed to balancing volume growth with pricing initiatives.
The company's confidence is supported by strong brand momentum, innovation and market execution. Coca-Cola delivered volume growth across all operating segments and extended its streak of value-share gains to 20 consecutive quarters. As inflation, geopolitical uncertainty and consumer pressures persist, Coca-Cola's pricing power remains a competitive advantage. However, 2026 appears less about aggressive pricing and more about leveraging pricing alongside affordability, innovation and consumer-centric execution to sustain long-term revenue growth.
KO’s Peers: Is Pricing Power Also Driving Growth at PEP & MNST?Pricing has been a major growth engine for beverage companies in recent years, but as inflation moderates and consumers become more value-conscious, the key question is whether PepsiCo Inc. (PEP - Free Report) and Monster Beverage Corporation (MNST - Free Report) can still rely on pricing actions to drive revenue growth.
PepsiCo's pricing power remains an important contributor to growth in 2026, though the company is increasingly relying on a balanced mix of pricing, affordability initiatives and innovation. In first-quarter 2026, organic revenues rose 2.6%, supported by effective net pricing and modest volume gains, while management highlighted affordability investments and brand restaging efforts as key growth drivers. PepsiCo expects organic revenue growth of 2-4%, suggesting pricing remains a tailwind, but sustainable growth will also depend on volume recovery and continued consumer demand across its beverage and snack portfolios.
Monster Beverage's pricing power continues to support revenue growth in 2026, but it is working alongside strong category demand, innovation and international expansion. Management noted that pricing actions implemented in late 2025 are performing as expected, with modest inflationary pricing helping deliver volume and revenue growth. Pricing also partially offset higher aluminum and freight costs in the quarter. Looking ahead, Monster Beverage remains open to additional pricing opportunities while monitoring consumer resilience and category health, suggesting pricing remains an effective growth lever.
KO’s Price Performance, Valuation & EstimatesShares of Coca-Cola have risen 5.7% in the past three months compared with the industry’s return of 7.8%.
Image Source: Zacks Investment Research
From a valuation standpoint, KO trades at a forward price-to-earnings ratio of 23.57X compared with the industry’s average of 19.08X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KO’s 2026 and 2027 earnings per share implies year-over-year growth of 8.7% and 6.9%, respectively. Estimates for the aforesaid years have been unchanged in the past 30 days.
Image Source: Zacks Investment Research
Coca-Cola currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 is heading for a gain of nearly 10% this year, adding to its 78% increase over the past three calendar years. Excitement about artificial intelligence (AI) stocks drove this extraordinary momentum.
But stocks have also experienced declines in recent months and a fair share of volatility. This was due to a variety of factors, from turmoil in Iran to concerns about the U.S. economy and the high levels of technology spending. Though worries have eased, it's still a good idea to remember these times of volatility and prepare for the next similar phase.
What sort of stock is good to own in such an environment? You should seek out well-established companies with solid competitive advantages and a track record of reliable growth. And those that pay dividends are particularly attractive. Before you look any further, consider this dividend growth stock that, in a volatile market, is worth every penny of a $1,000 investment.
Image source: Getty Images.
A $1,000 investment or even less First, it's important to note that you don't have to have $1,000 to invest in this particular stock. You could pick up a share or two for much less, since it trades for about $80 -- or if you have a bigger investment budget, you could buy several shares, which would increase your dividend income opportunity. So, a wide range of investors may easily access and potentially gain from investing in this stock.
Which company am I talking about? Coca-Cola (KO +1.10%), a company known for its eponymous beverage as well as a wide variety of well-known brands, from Minute Maid juices to Dasani water. The world's largest non-alcoholic beverage maker has a wide moat, or competitive advantage, in the form of its brand strength and its distribution network. These are elements that have kept Coca-Cola in consumers' glasses around the world for decades.
And speaking of around the world, the company is present in 200 countries and tailors products to satisfy the tastes and buying habits of local consumers.
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A track record of growth All of this has helped Coca-Cola establish a long track record of earnings growth and the ability to manage difficult environments. For example, even as commodity pressures in tea and coffee and geopolitical turmoil in the Middle East represented headwinds in the recent quarter, Coca-Cola remained generally resilient. The company reported a 12% increase in net revenue to more than $12 billion and gained in value share for a 20th consecutive quarter.
Though Coca-Cola won't deliver the kind of explosive growth you may experience with a technology growth player, the company has proven its ability to offer investors steady growth they can count on over the long run.
Now, let's talk dividends. Coca-Cola is a Dividend King, meaning it's increased its dividend payments for at least 50 straight years. This is fantastic because it shows the company is committed to rewarding shareholders, suggesting it's likely to continue along this path. It's also important to note that Coca-Cola has the financial strength to make this happen, as we can see through the company's free cash flow levels.
KO Free Cash Flow data by YCharts
So Coca-Cola has both the desire to lift its dividend over time and the means to do so. This means that, when you buy Coca-Cola shares, you can be pretty confident that your dividend income will increase over time. Today, Coca-Cola pays a dividend of $2.12, representing a yield of 2.6% -- that surpasses the 1% dividend yield of the S&P 500.
Finally, let's consider Coca-Cola's valuation. The company trades at 24x forward earnings estimates. This isn't the cheapest it's been in recent years, but it remains in reasonable territory. In fact, over the past three years, the stock has traded between 20x and 25x forward earnings estimates -- valuation hasn't swung wildly from one extreme to the other.
All of this shows that Coca-Cola, in a volatile market or really at any time, is a stock that's worth every penny of your $1,000 investment.
Coca-Cola and the IRS are heading to court with $20 billion on the line amid a years-long dispute over the beverage company's reporting of profits made in the U.S. and overseas.
The soda giant is taking its case to a federal appeals court in Miami as it looks to resolve a tax liability stemming from how Coca-Cola and its foreign subsidiaries disclosed profits from 2007 to 2009 using an accounting practice known as transfer pricing.
The case centers on an agreement between the company and the IRS from 1996 about how the company would report foreign profits, as Coca-Cola's U.S. corporation licenses its intellectual property – ranging from recipes, brand names and trademarks – to foreign subsidiaries that manufacture concentrates used to make its beverages for foreign markets.
Coca-Cola argues that it structured its operations to comply with the 1996 agreement using a "10-50-50" method that lets foreign suppliers keep 10% of the gross sales, with the U.S. parent company and foreign subsidiary splitting the remaining profits.
COCA-COLA SHUTTING DOWN CALIFORNIA FACILITY AFTER MORE THAN A CENTURY
Coca-Cola argues the IRS backtracked on an agreement it reached with the company in 1996. (Rachel Wolf/Fox News Digital)
"Far from seeking to evade its tax obligations, Coca-Cola carefully structured its operations to adhere to a method that the IRS had repeatedly blessed," the company said in a court filing, per The Wall Street Journal.
The outlet reported that the IRS counters that the 1996 agreement was retroactive to 1987 but didn't apply to future years, and that it only offered protection from penalties for the use of the 10-50-50 method as opposed to immunity.
The IRS said in its own filing that the "combination of two non-promises does not add up to a promise, as Coca-Cola wishes."
COCA-COLA'S YELLOW CAPS ARE BACK – WHAT THEY MEAN AND WHY THEY'RE COMPARED TO MEXICAN COKE
Ticker Security Last Change Change % KO THE COCA-COLA CO. 80.95 +0.65 +0.80% While the company's tax filings from 2007 to 2009 were the focus of the IRS' initial case, Coca-Cola has continued to use the accounting method as the legal dispute has played out.
The IRS prevailed over Coca-Cola in a Tax Court ruling in 2020, which resulted in the company paying $6 billion in taxes and interest as the judge ruled the parent company's deals with foreign subsidiaries were structured improperly to keep profits overseas in lower tax jurisdictions.
COCA-COLA OFFICIALLY ROLLS OUT CANE SUGAR SODA ACROSS US MARKETS FOLLOWING TRUMP'S URGING: REPORT
The IRS argues Coca-Cola's international accounting practices were flawed and not approved. (Kayla Bartkowski/Getty Images)
That money could go back to Coca-Cola with interest if the company prevails with its appeal, though it could face an even larger tax bill if it's defeated in court due to the ongoing use of the tool.
Coca-Cola would owe an estimated $14 billion in taxes and interest for the 2010 through 2025 tax years, bringing the total to $20 billion if it loses its appeal against the IRS.
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The Journal noted that the potential $14 billion liability could cause Coca-Cola to borrow to pay the IRS, as the amount exceeds the cash it has on hand – though analysts have said the company is emphasizing it has the needed liquidity to cover the bill and maintain its dividend for investors.
Coca-Cola declined to comment. FOX Business reached out to the IRS for comment.
I keep buying Coca-Cola while half of Wall Street treats every consumer staple like it has a fuse on it. The June panic over a softening jobs report, decelerating GDP growth, and credit card delinquencies spiking as U.S. consumer debt levels hit a generational breaking point has pushed momentum traders out of anything that touches a shopper’s wallet. I am running the other direction, adding to Coca-Cola (NYSE:KO | KO Price Prediction) on every soft afternoon.
The core reason is simple. A bottle of Coke is the cheapest small luxury most households still afford when budgets tighten. That is the reality showing up in the numbers.
Start with the most recent quarter. Q1 2026 revenue came in at $12.47 billion against a $12.23 billion estimate, up 12.07% year over year. EPS of $0.86 beat the $0.8123 consensus by 5.87%, the fourth straight quarter of EPS beats. Organic revenue grew 10%. Operating margin expanded to 35.0% from 32.9%. Coca-Cola Zero Sugar volume rose 13% across every geographic segment. Global unit case volume rose 3%, led by China, the United States, and India. New CEO Henrique Braun framed it plainly: “We’ve had a strong start to the year. Our performance this quarter reflects our unwavering focus on staying close to the consumer, executing locally and managing complexity.”
Now compare that to the macro picture. Real GDP growth has decelerated to 1.6% in Q1 2026 from 4.4% in Q3 2025. Consumer goods spending collapsed to 0.4% from 6.9% in late 2024. Yet food nondurables spending sat at $1,562.8 billion in April 2026, modestly higher than a year earlier. Beverage demand stays inelastic when auto and apparel demand cracks. Coke pushed price/mix up 2 points in Q1 even with weak shoppers. That is pricing power doing its job.
The second reason is the dividend itself. KO paid $8.8 billion in dividends in 2025, the 63rd consecutive annual increase. The quarterly payout has marched from $0.485 in 2024 to $0.51 in 2025 to $0.53 in 2026, an annualized rate of $2.12 per share. Management guided 2026 free cash flow to roughly $12.2 billion, with $5.2 billion still authorized for repurchases and $477 million already bought back in Q1. That is a self-funding capital return machine.
The third reason is balance sheet quality. Cash and equivalents reached $10.57 billion in Q1, up 25.63% year over year. Total liabilities fell 7.41%. Operating cash flow grew 138.85%. Free cash flow grew 131.85%. Shareholder equity expanded 28.36%. A company built like this avoids forced choices during a slowdown.
Now the real risk. Asia Pacific comparable currency neutral operating income fell 17% on higher input costs and unfavorable mix. The pending sale of Coca-Cola Beverages Africa still needs regulatory approval, the IRS tax litigation is unresolved, and acquisitions and divestitures carry a roughly 4% revenue headwind for the year. If U.S. consumer debt cracks worse than expected and shoppers trade down from even a $2 bottle, volume could soften. I weigh that against a 35.0% operating margin, four straight EPS beats, and management raising full-year comparable EPS growth guidance to 8% to 9% versus $3.00 in 2025.
That is why the buy button keeps working. A 136-year-old company with 63 years of dividend hikes, raised guidance, expanding margins, and growing free cash flow is exactly what I want owning me through a slow GDP year.
Uber Technologies (UBER - Free Report) closed at $70.91 in the latest trading session, marking a -3.19% move from the prior day. This change lagged the S&P 500's daily loss of 1.22%. Meanwhile, the Dow experienced a drop of 0.98%, and the technology-dominated Nasdaq saw a decrease of 1.35%.
The stock of ride-hailing company has fallen by 1.13% in the past month, lagging the Computer and Technology sector's gain of 1.19% and the S&P 500's gain of 1.56%.
The investment community will be closely monitoring the performance of Uber Technologies in its forthcoming earnings report. It is anticipated that the company will report an EPS of $0.84, marking a 33.33% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $14.16 billion, up 11.91% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $2.95 per share and revenue of $57.72 billion, indicating changes of -44.34% and +10.96%, respectively, compared to the previous year.
Investors should also note any recent changes to analyst estimates for Uber Technologies. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.03% higher. As of now, Uber Technologies holds a Zacks Rank of #3 (Hold).
In terms of valuation, Uber Technologies is currently trading at a Forward P/E ratio of 24.84. This represents a premium compared to its industry average Forward P/E of 15.84.
One should further note that UBER currently holds a PEG ratio of 6.23. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. UBER's industry had an average PEG ratio of 1.63 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 166, putting it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
SAN FRANCISCO, June 18, 2026 (GLOBE NEWSWIRE) -- Life360 (NASDAQ: LIF) and Uber Technologies, Inc. (NYSE: UBER), global leaders in transportation and family safety, today launched the next phase of a strategic partnership, allowing Life360 members to request and coordinate Uber rides for teens and other family members directly within the Life360 app.
The integration combines Uber Family’s trusted ride platform and safety features with Life360’s real-time location sharing and coordination experience, giving families greater visibility before, during, and after their loved ones’ rides for more peace of mind.
The end of the school year often means more independence for teens and more complicated schedules for parents. As rides to activities and social events increase, families often juggle multiple apps, texts, and check-ins just to keep everyone coordinated and informed. This new integration simplifies that experience while keeping safety and visibility at the center.
“During summer break, teens take more trips to the mall, movie theaters, sports camps, and other community destinations – with over 40% of teen rides happening while many parents may still be at work,” said Margarita Peker, Head of Family Verticals at Uber. “Coordinating those schedules across different apps and conversations can quickly become overwhelming for families. Through our integration with Life360, we’re helping make transportation simpler, more transparent, and easier to manage for everyone, all under one app.”
“Family life is full of moments that don't fit the routine, and getting loved ones where they need to go safely has become one of the biggest coordination challenges for modern families,” said Kevin Sung, VP of Product for Life360. “By bringing Uber into Life360, we’re making it easier for families to coordinate transportation while giving parents greater visibility, confidence, and peace of mind throughout the journey.”
Parents can now request rides directly to a family member’s real-time location on Life360. Their pickup details are then automatically filled into the Uber app and the trip’s progress can be followed on either the Life360 map, alongside other family members’ whereabouts, or the Uber app, with access to live-trip tracking and other safety features. Live trip updates and arrival visibility help reduce uncertainty in the moments families care about most.
Since launching in 2023, Uber teen account users have completed tens of millions of trips across more than 50 countries worldwide. Parents can invite their teen (ages 13-17) to create a specialized account that allows teens to request their own rides and order food, with parental supervision and key safety features – like trip tracking and real-time notifications for parents - built into the experience. Only highly-rated and experienced drivers who have undergone a multi-step safety screening, including a Motor Vehicle Record and criminal background check, are able to receive trip and delivery requests from teen account holders.
Life360’s partnership with Uber reflects the company’s continued evolution as a family super app, bringing together people, services, and experiences families rely on into a single connected experience. Designed to work across iOS and Android, the platform supports more seamless coordination between families and the services they rely on, helping them navigate everyday life with more ease and peace of mind.
The new Uber integration will be live for Life360 members in select markets on June 18, 2026.
About Life360
Life360, a family connection and safety company, keeps people close to the ones they love. The category-leading mobile app and hardware tracking devices empower members to stay connected to the people, pets, and things they care about most, with a range of services, including location sharing, safe driver reports, and crash detection with emergency dispatch. As a remote-first company based in the San Francisco Bay Area, Life360 serves approximately 97.8 million monthly active users (MAU), as of March 31, 2026, across more than 180 countries. Life360 delivers peace of mind and enhances everyday family life in all the moments that matter, big and small. For more information, please visit life360.com.
About Uber
Uber’s mission is to create opportunity through movement. We started in 2010 to solve a simple problem: how do you get access to a ride at the touch of a button? More than 61 billion trips later, we're building products to get people closer to where they want to be. By changing how people, food, and things move through cities, Uber is a platform that opens up new possibilities.
Key Takeaways Uber and WeRide plan to launch commercial robotaxi services in Greater Zurich later this year. The Zurich service will run through the Uber app, pending regulatory approvals, with FEDRO. Uber aims to expand robotaxis globally through partnerships with WeRide, Zoox and others. Uber Technologies (UBER - Free Report) , in collaboration with WeRide (WRD - Free Report) , a Chinese autonomous vehicle company, announced plans to introduce commercial robotaxi services in the Greater Zurich Region. This move represents their second joint deployment in Europe, coming just weeks after the announcement of a similar initiative in Madrid.
The service is expected to commence later this year in partnership with Switzerland’s Federal Roads Office (“FEDRO”), pending regulatory approvals. During the launch of the service, passengers will be able to access the robotaxi service through the Uber app.
Switzerland’s advanced regulatory framework for autonomous vehicles, combined with its strong ride-hailing market, offers favorable economic conditions for robotaxi operations. The fleet will be expanded gradually in coordination with regulatory authorities as operational milestones are achieved, ultimately progressing toward fully driverless commercial services in key urban areas.
The launch builds on the partners’ growing track record in autonomous mobility. Since December 2024, WeRide and Uber have introduced robotaxi services across several Middle Eastern markets, including fully driverless commercial operations in Abu Dhabi and Dubai, as well as public services in Riyadh. These deployments provide an operational foundation for their European expansion.
In November 2024, WeRide obtained a driverless permit from FEDRO, allowing autonomous vehicle operations on public roads in Zurich’s Furttal region. Supported by the WeRide One universal technology platform and the WeRide GENESIS simulation platform, the company intends to leverage insights from existing deployments to accelerate the rollout and maintain consistent service performance in Zurich.
With the addition of Zurich, WeRide and Uber will operate Robotaxi services in five of the 15 cities covered under the agreement, inked in May 2025. The companies aim to deploy tens of thousands of robotaxis globally, supporting broader adoption of autonomous mobility solutions.
The Zurich robotaxi deployment strengthens Uber’s position in the rapidly evolving autonomous mobility sector by expanding its European footprint and deepening the partnership with WeRide. Integrating autonomous vehicles into the Uber platform can help lower long-term operating costs, improve service availability and reduce dependence on human drivers. The expansion also enables Uber to gain valuable operational experience in a highly regulated market, supporting future rollouts across Europe while reinforcing its reputation as a leader in next-generation transportation solutions.
Uber aims to establish a strong foothold in the robotaxi space through a partnership-focused approach. By working with third-party autonomous technology developers, the company sidesteps the heavy research and development costs required to build proprietary self-driving systems. Earlier in the year, Uber entered into a strategic partnership with Amazon’s (AMZN - Free Report) Zoox to deploy its purpose-built robotaxis on the former’s platform.
The Amazon unit’s robotaxis differ from many other autonomous vehicles currently in development because they are not modified versions of traditional passenger cars. Instead, the vehicles are purpose-built specifically for ride-hailing services and designed to enhance rider comfort and social interaction. The Amazon unit and Uber indicated that Zoox rides are expected to be available in Los Angeles next year.
UBER’s Share Price Performance, Valuation and EstimatesShares of UBER have declined in single digits (% wise) over the past three months. Courtesy of the unimpressive performance, UBER’s shares have underperformed the Zacks Internet-Services industry over the same time frame.
3-Month Price ComparisonImage Source: Zacks Investment Research
From a valuation standpoint, UBER trades at a 12-month forward price-to-sales of 2.33X. UBER trades at a discount compared with its industry.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for Uber’s earnings has been revised over the past 90 days.
Image Source: Zacks Investment Research
UBER's Zacks RankUBER currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Uber Technologies Inc (NYSE:UBER, XETRA:UT8) is strengthening its autonomous vehicle strategy through new robotaxi expansion plans in the United States and Europe, moves that Bank of America analysts believe could improve investor sentiment toward the company.
Uber recently announced plans to expand its autonomous vehicle partnerships to Houston with Nuro and Lucid, and to Zurich with WeRide. Bank of America analysts wrote that these developments enhance Uber's autonomous vehicle catalyst path, with five potentially notable launches across US and European cities expected in the second half of 2026.
The analysts maintained a ‘Buy’ rating on Uber shares, writing that successful launches could help shift the narrative around autonomous vehicle supply competition and support valuation expansion.
Uber stock has lagged the S&P 500 since mid-2025, according to the analysts, amid concerns about growing competition in autonomous driving from companies including Alphabet's Waymo and Tesla, as well as broader weakness in internet growth stocks.
Uber, Lucid and Nuro selected Houston as the second market for their robotaxi program after the San Francisco Bay Area, targeting an exclusive launch through the Uber platform by mid-2027.
The service is expected to use Lucid Gravity vehicles equipped with Nuro's Level 4 autonomous driving system. Uber has also secured a 50,000-square-foot depot and charging infrastructure in Houston to support fleet operations.
Bank of America analysts wrote that while some concerns remain regarding Nuro's technology and Lucid's ability to supply vehicles at scale, the Houston expansion suggests increasing confidence in future autonomous vehicle availability.
Separately, Uber and WeRide plan to launch a commercial robotaxi service in the Greater Zurich region later this year, subject to regulatory approval. Riders will be able to access the service through Uber's platform, while local partner Rydera will oversee fleet operations.
The Zurich deployment follows a recently announced expansion into Madrid and marks the fourth of 15 cities expected under the Uber-WeRide partnership. The companies have previously introduced robotaxi services in Abu Dhabi, Dubai and Riyadh.
Bank of America analysts wrote that the planned 2026 deployment timeline is encouraging and indicates that additional cities under the partnership could be introduced during the first half of 2027.
Uber Technologies Inc (NYSE:UBER, XETRA:UT8) is strengthening its autonomous vehicle strategy through new robotaxi expansion plans in the United States and Europe, moves that Bank of America analysts believe could improve investor sentiment toward the company.
Uber recently announced plans to expand its autonomous vehicle partnerships to Houston with Nuro and Lucid, and to Zurich with WeRide. Bank of America analysts wrote that these developments enhance Uber's autonomous vehicle catalyst path, with five potentially notable launches across US and European cities expected in the second half of 2026.
The analysts maintained a ‘Buy’ rating on Uber shares, writing that successful launches could help shift the narrative around autonomous vehicle supply competition and support valuation expansion.
Uber stock has lagged the S&P 500 since mid-2025, according to the analysts, amid concerns about growing competition in autonomous driving from companies including Alphabet's Waymo and Tesla, as well as broader weakness in internet growth stocks.
Uber, Lucid and Nuro selected Houston as the second market for their robotaxi program after the San Francisco Bay Area, targeting an exclusive launch through the Uber platform by mid-2027.
The service is expected to use Lucid Gravity vehicles equipped with Nuro's Level 4 autonomous driving system. Uber has also secured a 50,000-square-foot depot and charging infrastructure in Houston to support fleet operations.
Bank of America analysts wrote that while some concerns remain regarding Nuro's technology and Lucid's ability to supply vehicles at scale, the Houston expansion suggests increasing confidence in future autonomous vehicle availability.
Separately, Uber and WeRide plan to launch a commercial robotaxi service in the Greater Zurich region later this year, subject to regulatory approval. Riders will be able to access the service through Uber's platform, while local partner Rydera will oversee fleet operations.
The Zurich deployment follows a recently announced expansion into Madrid and marks the fourth of 15 cities expected under the Uber-WeRide partnership. The companies have previously introduced robotaxi services in Abu Dhabi, Dubai and Riyadh.
Bank of America analysts wrote that the planned 2026 deployment timeline is encouraging and indicates that additional cities under the partnership could be introduced during the first half of 2027.
The Turkish Competition Board said on Friday it had approved Uber Technologies Inc.'s acquisition of the delivery arm of Turkey's Getir from Emirati controlling shareholder Mubadala.
Key Takeaways Uber expanded its Life360 partnership to let families request and coordinate teen rides in one app. Families can request rides from real-time locations and track trip progress in Life360 or Uber. Uber says teen accounts have completed tens of millions of trips across more than 50 countries. Uber Technologies (UBER - Free Report) and Life360 (LIF - Free Report) have expanded their strategic partnership by introducing a new integration that enables Life360 members to request and coordinate Uber rides for teenagers and other family members directly through the Life360 application.
The latest integration brings together Uber Family’s ride-hailing platform and safety tools with Life360’s real-time location-sharing and family coordination capabilities. The combined offering is designed to provide families with enhanced visibility before, during and after trips, helping them stay informed about the whereabouts of loved ones and improving overall peace of mind.
The launch comes at a time when the end of the school year typically leads to greater independence for teenagers and more complex scheduling demands for parents. As teens increasingly travel to social gatherings, sports activities, camps, shopping centers and entertainment venues, families often rely on multiple apps, messages and check-ins to coordinate transportation. The new integration aims to streamline this process while maintaining a strong focus on safety and transparency.
Uber noted that summer break generally results in a rise in teen travel, with a significant portion of rides occurring while parents are still at work. The company highlighted that managing transportation across several applications and communication channels can become challenging for families. Through the integration with Life360, Uber seeks to simplify transportation management, improve visibility and create a more seamless experience within a single platform.
Under the new functionality, parents can request rides directly to a family member’s real-time location displayed within the Life360 app. Pickup information is automatically transferred to the Uber app, while trip progress can be monitored either through the Life360 map alongside the locations of other family members or through the Uber app. Users also gain access to live trip tracking, arrival updates and other safety features that help reduce uncertainty during travel.
Uber’s teen account program has gained significant traction since its launch in 2023, with users completing tens of millions of trips across more than 50 countries. The service allows parents to invite teenagers aged 13 to 17 to create specialized accounts that enable them to book rides and order food while remaining under parental supervision. Safety measures include trip tracking, real-time notifications for parents and access only to highly rated and experienced drivers who have completed comprehensive safety screenings, including motor vehicle record checks and criminal background checks.
The partnership is also expected to strengthen Uber’s position in the family transportation market. By embedding its services within Life360’s widely used family safety platform, Uber can increase engagement among families, expand adoption of its teen-focused offerings and encourage greater use of its ride-hailing ecosystem. The integration may also help Uber attract new users who prioritize safety, convenience and family coordination, while reinforcing customer loyalty through a more connected and seamless transportation experience.
Available on both iOS and Android devices, the integration is intended to support smoother coordination between families and the services they depend on, making everyday life easier and more manageable.
Taking a Look at LYFT’s Feature Similar to Uber Teen AccountsUber’s rival Lyft (LYFT - Free Report) has introduced the Lyft Teen service, which allows riders aged between 13 and 17 to book trips independently, while parents can track routes in real time, contact drivers and use a PIN system to confirm the correct pickup.
Lyft Teen is now available in more than 200 major U.S. markets, with further expansion planned through 2026. As only 25% of teens are projected to hold driver’s licenses in 2026, down from 50% in 2000, Lyft positions ride-sharing as a practical alternative through the launch of this service, which mirrors that of rival Uber.
UBER’s Share Price Performance, Valuation and EstimatesShares of UBER have declined in double digits over the past six months. Due to the downbeat performance, UBER’s shares have underperformed the Zacks Internet-Services industry over the same period.
6-Month Price ComparisonImage Source: Zacks Investment Research
From a valuation standpoint, UBER trades at a 12-month forward price-to-sales of 2.36X. UBER is inexpensive compared with its industry.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for full-year 2026 and 2027 has remained stable in the past 30 days.
Image Source: Zacks Investment Research
UBER's Zacks RankUBER currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in UBER over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Per data compiled by Leverage Shares posted on X by Special Situations, in June 2027, a major insider lockup is scheduled to expire, potentially making a massive block of currently restricted shares eligible for sale.
The Supply Question Few Investors Are DiscussingWhen SpaceX went public earlier this month, much of the company’s stock remained locked up under post-IPO restrictions.
According to the company’s share ownership structure, public investors currently have access to just about 5% of the company’s outstanding shares. That dynamic helps explain why newly public stocks can sometimes experience sharp price swings in their early months of trading.
A limited float means demand from new investors is competing for a relatively small pool of available shares.
That equation could look very different next year.
Based on the company’s lockup schedule, a substantial portion of insider-held (including Elon Musk‘s) shares are expected to become eligible for sale in June 2027. While eligibility does not mean insiders will sell, the event could significantly increase the amount of stock available for trading.
For investors, the key issue isn’t necessarily selling activity itself. It’s supply.
Meta, Uber And Rivian Offer A ReminderSpaceX would not be the first high-profile company to face investor scrutiny around a major lockup expiration.
Rivian Automotive, Inc (NASDAQ:RIVN) experienced comparable pressure in 2022, when investors worried about the implications of insiders gaining the ability to sell large portions of their holdings.
In each case, the anticipation of new supply often became almost as important as the actual selling activity.
Why SpaceX Could Be DifferentSpaceX is not Meta, Uber or Rivian.
For one thing, the company’s shareholder base is unusually concentrated around Musk and early investors. The business also operates in sectors that have attracted intense investor enthusiasm, including artificial intelligence, space infrastructure, satellite communications and defense technology. Those factors could help absorb additional supply if investor demand remains strong.
At the same time, the sheer scale of the potential unlock makes it difficult to ignore. SpaceX is already one of the most valuable publicly traded companies in the world. Any significant increase in tradable shares would represent one of the largest unlock events ever associated with a mega-cap stock.
That doesn’t mean the stock is destined to fall.
Meta ultimately went on to become one of the best-performing large-cap stocks of the following decade despite its lockup concerns. Uber recovered from its early post-IPO struggles, while investors eventually shifted their focus back to company fundamentals.
But history suggests that when a large block of insider shares approaches eligibility, the market tends to pay attention.
The Next SpaceX Catalyst May Be About Supply, Not DemandFor now, most investors remain focused on SpaceX’s growth story. The company continues expanding Starlink, investing heavily in artificial intelligence through xAI and pursuing opportunities that could further increase its importance across communications, defense and technology markets.
Yet as June 2027 approaches, investors may begin asking a different question. Not whether demand for SpaceX shares remains strong. But whether the market is prepared for a significant increase in supply.
Image via Shutterstock
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Uber is the largest shareholder in Lime heading into its IPO. Bloomberg/Getty Images Uber has a lot riding on scooters.
The ride-hailing company, which was an early investor in scooter rental business Lime, is the company's largest shareholder, according to a prospectus detailing plans for an initial public offering that Lime filed on Monday. Uber owns about 14 million shares, or a 24% stake ahead of the IPO, according to the S-1 securities filing.
Uber's stake would be worth about $350 million if Lime prices its IPO at $25 a share, the midpoint of the $24 to $26 target range the company shared in its filing.
Lime said Uber has shown interest in buying up to $20 million in additional Lime common stock as part of the IPO, according to the prospectus.
Uber did not respond to a request for comment.
Precisely how much Uber stands to make on its Lime investment remains to be seen. The companies have not publicly shared how much Uber has invested in Lime over the years. Lime could revise its planned price per share before it goes public. Uber also faces restrictions on how many shares of Lime stock it can sell over the next two years — and thus how much it can cash out — as part of the IPO terms.
Lime and Uber go way back. Wayne Ting, Lime's CEO, previously served as chief of staff to Uber CEO Dara Khosrowshahi. Uber also invested in some of Lime's fundraising rounds, including leading a $170 million round announced in May 2020.
Many Lime users find a scooter or bike to ride through Uber's app. Such trips accounted for about 14% of Lime's revenue in 2025, according to the prospectus.
That relationship has helped Lime acquire new customers. "By leveraging Uber's existing infrastructure and rider network, we tap into an existing rider base that can drive awareness without upfront marketing costs," Lime wrote in the filing.
The relationship between Lime and Uber might serve as a model. Uber has struck partnerships with around a dozen self-driving car providers over the past few years, from Waymo in the US to Baidu in Asia and the Middle East.
Uber, which already has millions of riders signed up to use its app, can match those robotaxi services with riders, Khosrowshahi has said.
"I do think the aggregator model certainly would be helpful for all of those companies to succeed," he told the "Stratechery" podcast last year.
Do you have a story to share about Lime or Uber? Contact this reporter at [email protected] or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.
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Alex Bitter You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansion, Starbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at [email protected] or via encrypted messaging app Signal at +1 (808) 854-4501.
A flood of high-powered, cheap-to-use Chinese AI models are quickly amassing customers across the US – and experts are sounding alarms that America’s lead in artificial intelligence could be in danger.
One such new open-source model, dubbed GLM-5.2, was released by China’s z.AI on June 16 and specializes in coding projects. The company claims that GLM-5.2 is about as advanced as some of the best models offered by Anthropic, OpenAI and Google.
“Genuinely impressed, almost shocked, at how good GLM 5.2 by @zai_org is at coding,” Guillermo Rauch, the CEO of US-based AI firm Vercel, wrote on X. “This changes things.”
z.AI says its new model competes with top US rivals. Mat Velloso, an AI executive who formerly held senior roles at Meta and Google DeepMind, wrote that he had spent “all day” using GLM-5.2.
“First open model that passes the bar as a daily driver,” Velloso wrote on X. “Things are not going to be the same.”
The Trump administration has been increasingly wary about China’s breakneck pace in AI development – with officials warning as recently as recently as April that China was engaged in “industrial-scale” efforts to rip off AI technology.
OpenAI and Anthropic have accused Chinese firms of using a technique called “distillation” to extract data from American models.
Chinese AI is gaining a foothold in the US market. Of the 10 models included on AI marketplace OpenRouter’s most popular rankings, six were developed by Chinese tech firms, including DeepSeek, Tencent, Xiaomi and MiniMax.
US firms have accused Chinese AI firms like DeepSeek of using “distillation” methods to steal data. REUTERS Chinese firms are goosing their growth with open-source models, which are generally free to download, customizable and don’t come with usage fees.
That strategy was famously embraced by Mark Zuckerberg’s Meta – but the company has since pivoted toward money-making “closed” models as part of a major shakeup of its overall AI strategy late last year.
Now, some AI experts fret that open-source Chinese models will eventually become the global standard.
Z.AI’s leadership has begun to burnish its public profile. When SpaceX CEO Elon Musk predicted last week that a Chinese firm would catch up to Anthropic’s frontier models in “probably Q1” of next year, z.AI founder Jie Tang replied that it “won’t take that long.”
Elon Musk said Chinese AI models will likely catch up by the first quarter of 2027. Xavier Collin/Image Press Agency / BACKGRID Unlike subscription-based US models, many of the leading Chinese models are open-source — meaning they are readily available to the public and much cheaper to use for major projects. In fact, the cost of AI tokens, a measure of usage, has become so high for top AI models that leading firms like Meta, Uber and Walmart have imposed or plan to impose limits on how much employees can use them.
Cursor, an AI coding firm recently acquired by Musk’s SpaceX, admitted in March that its “Composer 2” model was built using an open-source model released by China-based Moonshot AI, whose backers including Alibaba.
Elsewhere, Microsoft drew criticism earlier this month after Axios reported that it was considering making a version of China’s DeepSeek available on the company’s new “Copilot Cowork” tool, which allows users to select from an array of AI models to complete long-term projects.
Anthropic CEO Dario Amodei frequently warns that AI will upend the US economy. REUTERS The report drew a fiery response from Sen. Rick Scott (R-Fla.), a China hawk, who said “Communist China wants to destroy our way of life.”
“American companies have no business selling out our national security by partnering with CCP tech companies like this,” Scott wrote in a June 16 post on X.
The plan is part of Microsoft CEO Satya Nadella’s strategy to offer access a variety of more affordable AI models, not just the expensive leading models offered by American AI giants, according to an interview he gave to the Wall Street Journal.
Microsoft, led by CEO Satya Nadella, is mulling making a version of DeepSeek available to enterprise customers. Getty Images In the interview, Nadella rebuked tech CEOs over how they’ve discussed AI’s potential to shake up the US economy. though he didn’t mention any by name. Anthropic CEO Dario Amodei, for example, has warned that AI could cause national unemployment to hit 25% over time – with white-collar jobs hit particularly hard.
“You can’t say, hey, all white-collar jobs are gone and this could even be a weapon and we will use all the power to build data centers,” Nadella told the WSJ.
RESTON, Va., June 23, 2026 (GLOBE NEWSWIRE) -- Regula is helping Uber bring advanced driver verification technologies to more cities across Poland. By expanding the use of Regula’s document authentication solutions nationwide, Uber is strengthening fraud prevention and adding an extra layer of high-assurance identity checks that goes beyond standard industry practices.
As part of the expanded partnership, Regula 7320 mobile document readers now support driver identity verification across Uber’s infrastructure
This rapid expansion calls for a reliable and standardized document verification system that ensures consistent, high-quality driver identity checks across all locations. Maintaining consistent identity verification standards becomes critical to preventing document fraud, identity spoofing, and unauthorized platform access.
To support this initiative, Regula is helping Uber scale the deployment of its document authentication solutions across verification centers and agents countrywide. The project is implemented in cooperation with Regula’s local partner, Korporacja Wschód, which supports deployment and integration across Uber’s verification ecosystem in Poland.
“We are delighted that for several years now we have been supporting Uber in developing its driver verification network in Poland. Uber’s choice of Regula’s solutions reflects a clear commitment to using best-in-class technology, at a level trusted by border control authorities, consistently placing their user safety at the center. At the same time, the system has delivered measurable performance gains without compromising accuracy. Its scalability has allowed a seamless transition from a PoC to a nationwide network, while its adaptability supports the integration of both fixed verification offices and mobile devices,” says Aleksander Bokszczanin, Chief Operating Officer at Korporacja Wschód.
Building a scalable verification ecosystem — nationwide
Regula’s technologies help Uber combine center-based document verification with mobile checks. This approach creates a comprehensive and standardized verification ecosystem that supports both high-volume processing and flexible deployment, ensuring consistent verification outcomes and enabling the company to scale operations efficiently across the country.
“As we grow into new cities, it is critical that every driver undergoes the same thorough verification process. Building a nationwide verification system means ensuring that standards remain consistent everywhere — and Regula’s solutions help us achieve that border-grade verification level at scale while keeping the process efficient and reliable,” says Iwona Kruk, Head of Comms, Uber CEE.
Combining stationary and mobile verification capabilities
To establish a professional verification process, Uber initially deployed Regula 7029 document verification workstations with built-in touchscreen, which continue to be used in its existing centers. These devices are designed for thorough document examination and enable operators to:
Detect forged or altered documents by revealing hidden security features under multiple light sources (ultraviolet, infrared, white light).Prevent tampered IDs from passing verification by identifying subtle signs of manipulation through automated authenticity control and data cross-checks.Ensure only authentic documents are accepted with the border-grade verification accuracy.Create auditable verification records by capturing and analyzing document data for further checks and compliance. Thanks to the implementation of Regula 7029, the total number of verified drivers has significantly increased.
Regula 7320 mobile document reader helps Uber perform comprehensive driver identity verification even outside traditional office settings
As part of the project, Regula is also helping Uber expand mobile verification capabilities with Regula 7320 mobile document readers, adding flexibility to its verification operations. The device enables fast and accurate inspection of identity documents through advanced imaging and a range of light sources, helping detect alterations and fraud.
Thanks to its compact and portable design, the Regula 7320 allows verification processes to be carried out outside traditional office environments — for example, at temporary verification points or in new locations where full-scale infrastructure has not yet been established. This makes it possible to maintain consistent verification standards regardless of location, without compromising quality.
Both Regula 7029 document verification workstations and Regula 7320 mobile document readers run the same Regula software stack, ensuring a consistent, standardized verification process across all locations. Powered by Regula Document Reader SDK, they enable automated authenticity checks under multiple light sources, cross-verification of data from the visual inspection zone, RFID chip, and MRZ, as well as face matching. While the underlying technology remains the same, the difference in form factor allows Uber to perform these high-assurance checks both in fixed verification centers and in the field.
Arif Mamedov, CEO of Regula Forensics, Inc., comments: “At scale, identity verification must be both accurate and resilient to fraud attempts. As verification volumes grow, so does the risk of sophisticated document fraud slipping in unnoticed. Our solutions are designed to help detect even subtle signs of tampering and ensure that only authentic documents are accepted. This is particularly important in large, distributed verification networks, such as Uber is creating across Poland, where consistent and reliable checks are essential to prevent fraudulent users from entering the platform.”
This expansion reflects broader industry efforts to improve gig platform safety, where scalable identity verification plays a critical role in preventing identity fraud.
To learn more about how Regula helps build scalable and secure identity verification ecosystems for fraud prevention, visit the company’s website.
About Uber
Uber’s mission is to create opportunity through movement. We started in 2010 to solve a simple problem: how to get a ride at the tap of a button. More than 68 billion trips later, we’re building products to move people, food, and things through cities, opening the world to new possibilities.
About Korporacja Wschód
Founded in 1995, Korporacja Wschód is a family-run business that has continually evolved to meet the dynamic needs of high-technology sectors. As the distributor of Regula products in Poland since 1996, we have established ourselves as a vital link in delivering technological solutions to various enforcement and security agencies. Our expertise spans the development, integration, implementation, and distribution of advanced technology equipment, catering primarily to Border Guards, Police, Military, and a range of non-governmental enterprises and institutions. Our collaboration with Regula, a leader in forensic science technologies, underscores our commitment to offering cutting-edge solutions in document verification and security.
Learn more at https://korporacjawschod.pl.
About Regula
Regula is a global developer of identity verification solutions and forensic devices. With our 30+ years of experience in forensic research and the most comprehensive library of document templates in the world, we create breakthrough technologies for document and biometric verification. Our hardware and software solutions allow thousands of organizations and 80 border control authorities globally to provide top-notch client service without compromising safety, security, or speed. Regula has been recognized in the 2025 Gartner® Magic Quadrant™ for Identity Verification.
Uber Technologies (NYSE:UBER | UBER Price Prediction) at $70.91 sits in a holding pattern. The stock absorbed a sharp leg lower on the same day it unveiled a Zurich robotaxi launch with WeRide and a global Level 4 partnership with Stellantis and Wayve, capturing why this name is interesting and uninvestable simultaneously.
Uber runs the world’s largest ride-hailing and food delivery network, with 199 million monthly active platform consumers and 3.6 billion trips last quarter. The platform shifted from cash-burning growth to a free-cash-flow machine, with management leaning into autonomy as the next decade’s flywheel.
Shares are down from $92.65 at the Q3 2025 earnings report to current levels, with the 52-week high of $101.99 now distant.
Why the Bulls See a Compounder on Sale Q1 2026 delivered Gross Bookings of $53.72 billion, up 25% year over year, operating income of $1.923 billion, up 56.6%, and free cash flow of $2.286 billion. Non-GAAP EPS grew 44% year over year, and Uber returned $3.011 billion through buybacks in a single quarter.
Valuation sits at trailing PE of 18 and free cash flow yield of 6.76%. Bulls argue the WeRide, Wayve, Lucid, and Nuro partnerships position Uber as the asset-light demand aggregator of autonomy. Jim Cramer recently flagged the name as “down 29% from its all time high” while earnings compound near 40%. Kevin Warsh’s debut Fed meeting frames a hawkish regime punishing long-duration tech multiples.
Why the Bears See a Multiple Trap Uber’s 200-day moving average sits at $82.41, well above current levels. Margin pressure from foreign equity revaluations has been relentless: a $1.50 billion pre-tax headwind in Q1 after a $1.6 billion hit in Q4, dragging GAAP net income down 85.19%.
A Consumer Reports investigation alleging AI-driven price discrimination, intensifying Waymo and Tesla competition, and an unprofitable Freight segment add pressure to the de-rating story.
Why Patience Is the Cleanest Trade Operating momentum is real, but the chart is broken and macro is hostile. The signal to watch is whether Q2 lands inside management’s $0.78 to $0.82 EPS guide without another nine-figure equity revaluation shock. Stabilization near $58.00 would imply a forward multiple consistent with the current rate regime.
What the Numbers Actually Say Uber trades at $70.91 against a Wall Street average target of $104.43, implying roughly 47% upside if consensus is right. Of 51 covering analysts, 9 rate it Strong Buy, 36 Buy, 5 Hold, and 1 Sell.
Uber is down 13.22% year to date and 16.34% over the past year, while the S&P 500 is up 8.66% year to date and 24% over twelve months. That is roughly 22 points of YTD underperformance.
The Verdict: Watching for Stabilization At $70.91, Uber’s risk/reward looks balanced.
The fundamental story is intact. Gross Bookings compound in the mid-20s, Uber One has reached 50 million members driving half of bookings, and the autonomy stack deepened with WeRide, Stellantis, Wayve, Lucid, and Nuro. But price action signals the market is repricing duration broadly rather than Uber-specific cash flows, and fighting that with fresh capital is a losing trade in a hawkish Warsh regime.
The bull case strengthens if the stock stabilizes in the $58 zone alongside a Q2 earnings report holding the EPS guide with normalizing equity revaluation drag. The bear case strengthens on a guide cut, regulatory escalation from the pricing investigation, or evidence that Waymo is taking incremental share in tier-one US cities.
For long-term holders, the buyback continues to compound per-share value. For prospective buyers, a confirmed price floor would offer a cleaner entry, because a great business at the wrong price still struggles in this macro.
Key Takeaways Serve Robotics operates about 2,000 delivery robots, but losses widened as investment spending increased.Uber is expanding autonomous services via partnerships while generating strong free cash flow & buybacks.UBER's 41.4% trailing ROE exceeds SERV's negative average, highlighting stronger profitability and returns. With rapid growth in food delivery and e-commerce and the need for lower delivery costs, demand for autonomous delivery is gradually advancing. Amid such a market scenario, firms like Serve Robotics Inc. (SERV - Free Report) and Uber Technologies, Inc. (UBER - Free Report) are benefiting immensely, even if the market is still in its early stages.
Serve Robotics operates autonomous sidewalk delivery robots for food, healthcare and future package-delivery applications, while strategically expanding its fleet, geographic footprint, software monetization capabilities and multi-domain autonomy platform. Meanwhile, Uber runs a global mobility, delivery and logistics marketplace, while strategically strengthening its ecosystem through autonomous vehicle partnerships, AI-driven platform enhancements and expansion into travel, grocery and retail services.
Let’s closely compare the fundamentals of the two autonomous delivery stocks to determine which one is a better investment now.
The Case for Serve Robotics StockServe Robotics is emerging as an early pure-play player in autonomous last-mile delivery. Its deployed fleet has grown sevenfold year over year, while daily active robots increased tenfold. Beyond restaurant delivery, SERV is expanding into package delivery, healthcare logistics and other commercial applications. The acquisition of Diligent Robotics extends its capabilities into hospitals and indoor environments, strengthening its AI-driven autonomy platform and creating a larger cross-industry data flywheel.
The company currently operates the largest autonomous sidewalk delivery fleet in the United States, with approximately 2,000 robots deployed across 44 cities and more than 150 neighborhoods. Management is currently focused on maximizing utilization of its existing 2,000-robot fleet through merchant onboarding, platform integrations, neighborhood expansion and new market launches. Recent additions such as Buckhead, Fort Lauderdale and Alexandria demonstrate continued geographic growth, while international opportunities, including potential deployments in Canada, provide additional upside.
Strategic partnerships with platforms like DoorDash and software commercialization efforts, including connectivity solutions for robotics firms, are creating new revenue streams and boosting revenue per robot. Despite remaining in investment mode, Serve Robotics maintains disciplined capital allocation, ending first-quarter 2026 with about $197 million in cash and marketable securities. Its investments in AI, autonomy software, data infrastructure and platform integration support competitive differentiation and long-term profitability.
Despite strong revenue growth, Serve Robotics continues to incur substantial losses, negative gross margins and significant cash burn. First-quarter 2026 net loss widened to about $49 million as R&D, operations and administrative expenses increased with fleet expansion and the Diligent Robotics acquisition. Profitability at scale remains unproven, and management expects elevated spending to continue. The company also faces growing competition and remains dependent on a limited number of major delivery-platform partners for demand.
The Case for Uber StockUber is positioning itself as the operating system for autonomous transportation and delivery rather than a vehicle manufacturer. It partners with more than 30 autonomous vehicle companies and reported more than tenfold year-over-year growth in autonomous mobility trips. Management expects autonomous services in up to 15 cities by year-end. Uber’s hybrid model combines human drivers and autonomous fleet, while Uber Autonomous Solutions helps partners scale faster. Its large demand network can also support robot-powered food delivery, retail delivery and broader autonomous logistics services.
Uber’s growth remains robust, with more than 50 million Uber One members and 10 million drivers and couriers globally. Delivery growth is increasingly driven by grocery, retail and suburban markets. Initiatives introduced at its GO-GET event expand the platform into travel bookings, hotel reservations and broader local commerce. Uber is also enhancing cross-platform engagement through AI-powered personalization, universal search and membership benefits, while expanding into new markets and strengthening loyalty through Uber One. These efforts boost engagement, diversify revenue streams and reinforce Uber’s network effects.
Uber’s capital allocation strategy increasingly reflects the financial strength of a mature platform business. During the first quarter, the company generated substantial free cash flow and returned a record $3 billion to shareholders through share repurchases. Importantly, Uber is pursuing a capital-light autonomous strategy by partnering with fleet operators, financiers and insurers rather than owning large autonomous fleet itself. Partnerships with organizations such as Santander, Hertz and insurance providers help create a scalable ecosystem while limiting balance-sheet risk.
Although UBER has evolved into a highly profitable platform company, several risks could temper future upside. The company’s growth rate is naturally slowing as it becomes larger, making it increasingly difficult to sustain the strong expansion investors have become accustomed to. Uber is making significant bets on autonomous vehicles, AI and ecosystem expansion, and while these initiatives offer long-term potential, their financial returns remain uncertain. Additionally, Uber’s business remains exposed to macroeconomic conditions, consumer spending trends and labor-market dynamics. Delivery growth is increasingly tied to lower-margin categories such as grocery and retail, which could pressure profitability if scale benefits fail to offset margin dilution.
Stock Performance & ValuationAs witnessed from the chart below, in the past three months, shares of Uber have outperformed those of Serve Robotics, even though both of them reflect a declining trend.
Image Source: Zacks Investment Research
Considering valuation, over the last five years, Serve Robotics has been trading above Uber on a forward 12-month price-to-sales (P/S) ratio basis.
Image Source: Zacks Investment Research
Overall, from these technical indicators, it can be deduced that SERV stock offers a declining trend but with a premium valuation, while UBER stock offers a diminishing growth trend with a discounted valuation.
Comparing EPS Estimate Trends: SERV vs. UBERThe Zacks Consensus Estimate for SERV’s bottom line for 2026 and 2027 indicates losses per share of $2.51 and $2.19, respectively, which have widened over the past 60 days. The estimated figures for 2026 imply a year-over-year decline of 54%, while the same for 2027 indicates year-over-year growth of 12.6%.
SERV’s EPS Trend
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for UBER’s 2026 earnings has trended downward in the past 60 days to $2.95 per share, while the 2027 estimate has moved up to $4.42 per share during the same time frame. The estimated figures for 2026 imply a year-over-year decline of 44.3%, while the same for 2027 indicates year-over-year growth of 49.8%.
UBER’s EPS Trend
Image Source: Zacks Investment Research
Return on Equity (ROE) of SERV & UBER StocksUber’s trailing 12-month ROE of 41.4% significantly exceeds Serve Robotics negative average, underscoring its efficiency in generating shareholder returns.
Image Source: Zacks Investment Research
Should You Invest in SERV Stock or UBER Stock?Both Serve Robotics and Uber are positioned to benefit from the long-term adoption of autonomous delivery and AI-powered logistics. However, the risk-reward profiles are significantly different.
Serve Robotics offers a pure-play opportunity in autonomous last-mile delivery, operating the largest sidewalk robot fleet in the United States while expanding into healthcare logistics, package delivery and software monetization. Its platform partnerships and growing geographic reach provide significant long-term upside if autonomous delivery gains widespread adoption. However, the company remains in heavy investment mode, with substantial losses, negative gross margins and high cash burn. Recent downward revisions to earnings estimates also underscore uncertainty around its path to profitability.
Meanwhile, Uber is leveraging its vast ecosystem to become the operating system for autonomous transportation and delivery. With more than 50 million Uber One members, 10 million drivers and couriers, expanding grocery and retail delivery operations, and partnerships with more than 30 autonomous vehicle companies, it is gaining exposure to autonomy without the capital burden of fleet ownership. The company also generates strong free cash flow and boasts robust shareholder returns, including a 41.4% ROE and significant share repurchases.
Even if both stocks currently carry a Zacks Rank #3 (Hold), from a technical perspective, UBER has outperformed SERV over the past three months while trading at a lower valuation. Combined with superior profitability, stronger network effects and lower execution risk, UBER appears to offer the better near-to-medium-term upside potential. For investors seeking a combination of growth, profitability and exposure to the autonomous-delivery ecosystem, Uber is the stock to consider now, while Serve Robotics remains a higher-risk, longer-term speculative opportunity. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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A new lawsuit about sexual assaults takes aim at Uber's top leaders. Scott Olson/Getty Images Uber is facing another lawsuit over sexual assault — one that puts the blame on the company's board and C-suite.
The complaint by a minority Uber investor, Detroit's Police and Fire Retirement System, alleges that the company "knowingly cut compliance corners in the name of growing the company."
Uber is facing thousands of claims that its drivers sexually assaulted passengers. The shareholder complaint filed in a California federal court on Monday takes aim at Uber's management, including CEO Dara Khosrowshahi and members of the company's board of directors, accusing them of not doing enough to address the assault allegations.
"Uber faces significant liability in defending these suits and responding to inquiries, in addition to the hundreds of millions of dollars at stake," the complaint reads. "Uber has also seen its reputation irredeemably damaged by the negative ongoing media coverage of the wrongdoing."
An Uber spokesperson said that the lawsuit "ignores important facts and is based on misleading, false narratives from other meritless lawsuits that we have already addressed publicly and in the courtroom."
Uber has said that safety incidents are "exceptionally rare" on its app, and that the company is "constantly working to make every trip safer."
The lawsuit says that Khosrowshahi, who succeeded Travis Kalanick as Uber's CEO in 2017, "made cosmetic changes to Uber's compliance practices and workplace culture, and became less brazen in pushing regulatory limits."
"But Uber's culture of prioritizing cost-cutting measures meant that it continued to skimp on compliance or even seek to tamp down on complaints," the complaint says.
At odds with Uber's gig-work modelThe lawsuit claims Uber knew sexual assault and misconduct were persistent problems on its platform, yet failed to adopt measures that employees believed could reduce harm.
For example, the complaint alleges that Uber considered safety initiatives, including in-car cameras, more rigorous background checks, and programs that would better match women riders and drivers. Uber either implemented these proposals after delays or rejected them, the suit says.
Uber studied adding in-car cameras to its drivers' vehicles around 2017, for instance, and "found the plan to be feasible, cost-effective, likely to reduce the incidence of misconduct, and help drivers," the lawsuit says.
The company declined to add cameras to cars "because it would mean exercising greater control over drivers' activities, weakening Uber's argument that its drivers are independent contractors," the complaint states. Uber drivers are paid per trip or task and do not receive benefits, such as healthcare, that employees usually receive.
The suit points to thousands of sexual-assault lawsuits filed against Uber and alleges that the board caused "Uber to engage in unlawful conduct." As a result, the plaintiffs argue, Uber now faces litigation costs, regulatory scrutiny, and lasting reputational damage stemming from years of inadequate oversight.
Do you have a story to share about Uber? Contact this reporter at [email protected] or via encrypted messaging app Signal at 808-854-4501. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely.
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Alex Bitter You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansion, Starbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at [email protected] or via encrypted messaging app Signal at +1 (808) 854-4501.
Uber Technologies (UBER - Free Report) ended the recent trading session at $69.67, demonstrating a -2.46% change from the preceding day's closing price. This change lagged the S&P 500's daily loss of 1.44%. On the other hand, the Dow registered a loss of 0.09%, and the technology-centric Nasdaq decreased by 2.22%.
The ride-hailing company's stock has dropped by 0.54% in the past month, falling short of the Computer and Technology sector's gain of 0.98% and the S&P 500's gain of 0.08%.
The investment community will be paying close attention to the earnings performance of Uber Technologies in its upcoming release. It is anticipated that the company will report an EPS of $0.84, marking a 33.33% rise compared to the same quarter of the previous year. In the meantime, our current consensus estimate forecasts the revenue to be $14.16 billion, indicating a 11.91% growth compared to the corresponding quarter of the prior year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.95 per share and a revenue of $57.72 billion, signifying shifts of -44.34% and +10.96%, respectively, from the last year.
It is also important to note the recent changes to analyst estimates for Uber Technologies. Recent revisions tend to reflect the latest near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the past month, there's been a 0.03% rise in the Zacks Consensus EPS estimate. Uber Technologies presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Uber Technologies is currently exchanging hands at a Forward P/E ratio of 24.23. This signifies a premium in comparison to the average Forward P/E of 14.81 for its industry.
It's also important to note that UBER currently trades at a PEG ratio of 6.07. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. UBER's industry had an average PEG ratio of 1.58 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 155, finds itself in the bottom 37% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Building on continued retail momentum, consumers can now shop at Kiehl’s, FedEx Office, Blick Art Materials, Academy Sports + Outdoors, and Choice Pet on Uber Eats
SAN FRANCISCO--(BUSINESS WIRE)--Uber Technologies, Inc. (NYSE: UBER) today announced the addition of several new retailers to the Uber Eats marketplace, broadening its retail selection available for on-demand delivery. Consumers can now shop for products from Kiehl’s, FedEx Office, Blick Art Materials, Academy Sports + Outdoors, and Choice Pet through the Uber Eats, Uber, and Postmates apps.
Uber Eats is continuing to evolve beyond food delivery, offering a more comprehensive marketplace that spans everyday needs—including skincare, shipping supplies, art materials, sporting goods, and pet supplies. Shoppers can browse and order from thousands of participating stores nationwide, with delivery available on-demand or scheduled at their convenience.
As always, Uber One members enjoy a $0 Delivery Fee on eligible retail orders† and other ongoing benefits designed to make everyday shopping even more convenient.
Each new partner brings distinct offerings to consumers shopping on the Uber Eats marketplace:
Academy Sports + Outdoors broadens Uber Eats’ sporting goods assortment across the U.S. South, Southeast, and Midwest.Blick Art Materials adds art supplies, craft supplies, and creative gifts to Uber’s selection of art and retail goods, serving shoppers in New York City.Choice Pet, coming soon to the Uber Eats marketplace, strengthens Uber’s pet supplies selection with added stores across New York and Connecticut.FedEx Office, a leading provider of packing and office supplies, brings even more everyday convenience to Uber Eats, helping customers get what they need for business, work, school, or home projects—fast.Kiehl’s introduces a premium selection of skincare, haircare, and body products, enhancing Uber’s growing beauty category.Uber Eats is continuing to invest in new retail categories, adding to a growing marketplace that includes Sephora, The Home Depot, Best Buy, and other major retailers. Since the beginning of 2026, Uber has already added thousands of retail locations across the U.S., reinforcing its position as a convenient, multi-category delivery platform.
“Consumers are increasingly turning to Uber Eats for more than meals,” said Hashim Amin, Head of Retail for North America at Uber. “By welcoming a diverse group of retailers, we’re expanding access to a broader range of products—from pet supplies and sporting goods to arts and crafts materials and everyday essentials—all in just a few taps, while creating new opportunities for brands to connect with customers in faster, more flexible ways.”
How it Works
Open the Uber Eats app and tap “Retail” or the Uber app and tap “Shops.”Select your local Kiehl’s, FedEx Office, Blick Art Materials, Academy Sports + Outdoors, or Choice Pet store.††Browse available products and add items to your cart.Choose on-demand or scheduled delivery.Track your order in real time as it’s delivered to your door.About Uber
Uber’s mission is to create opportunity through movement. We started in 2010 to solve a simple problem: how do you get access to a ride at the touch of a button? More than 75 billion trips later, we’re building products to get people closer to where they want to be. By changing how people, food, and things move through cities, Uber is a platform that opens up the world to new possibilities.
†Fees and terms apply. See app for details.
††Availability may vary. See app for details.
Google-Parent Alphabet To Join Dow Jones Industrial Average, Replacing Verizon Google-parent Alphabet (GOOGL) will be added to the Dow Jones Industrial Average, replacing Verizon (VZ) on June 29. The move further cements the Dow Jones' shift into megacap techs. Google stock will be the fifth Magnificent Seven member in the Dow, following Microsoft (MSFT), Apple (AAPL), Amazon.com (AMZN) and Nvidia (NVDA). Google stock rose slightly in extended action. Verizon stock…
Related news Cathie Wood Loads Up On Palantir, Cerebras, These Mag 7 Players 6/24/2026 Cathie Wood and ARK Invest on Tuesday purchased $49 million of Amazon, Tesla, Alphabet, Palantir, CoreWeave and Cerebras.
6/24/2026 Cathie Wood and ARK Invest on Tuesday purchased $49 million...
Alphabet’s stock is set to join the Dow, pivoting index’s industrial roots toward tech
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HomeIndustriesInternet/Online ServicesMarket ExtraMarket ExtraAs Alphabet rolls out more data centers — and borrowing money to do it — it can be argued that it is becoming more of an industrial company, says strategistLast Updated: June 23, 2026 at 8:25 p.m. ET
First Published: June 23, 2026 at 5:53 p.m. ET
Alphabet will replace Verizon Communications in the Dow Jones Industrial Average, index provider S&P Dow Jones Indices said late Tuesday, tilting the historic U.S. equity benchmark deeper toward the technology sector. It will no longer have a component representing telecoms.
S&P Dow Jones Indices hailed the Google parent’s GOOG GOOGL technology portfolio, and said that adding the company to the Dow DJIA “will broaden and strengthen” the index’s exposure to “dynamic” sectors of the U.S. economy. “Its larger market capitalization and share price, together with the breadth of its businesses, make it a more representative communication services constituent in the DJIA,” the provider said.
About the Author
Claudia Assis is a San Francisco–based reporter for MarketWatch. Follow her on Twitter @ClaudiaAssisMW.
Joy Wiltermuth is assistant managing editor, markets. She is based in New York.
Children playground miniatures are seen in front of displayed Youtube logo in this illustration taken April 4, 2023. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
SummaryCompaniesTrial will go forward against Meta, Snap and TikTok in JulyCompanies face thousands of similar lawsuitsSeveral other trials are scheduled in the coming monthsJune 23 (Reuters) - Google's (GOOGL.O), opens new tab YouTube has settled a lawsuit brought by a minor who claimed the platform damaged his mental health, his lawyers said Tuesday, ahead of a second California trial over social media's role in the youth mental health crisis.
The terms of the settlement of the state court lawsuit were confidential, the lawyers said on Tuesday. The suit named four defendants — YouTube, Meta's (META.O), opens new tab Instagram, Snap Inc's (SNAP.N), opens new tab Snapchat and ByteDance's TikTok — and the remaining three companies are still set to face trial in July.
Learn about the latest breakthroughs in AI and tech with the Reuters Artificial Intelligencer newsletter. Sign up here.
Google spokesperson Jose Castaneda said in a statement that the lawsuit had been amicably resolved. "Our focus remains on building age-appropriate products and parental controls that deliver on that promise,” Castaneda said.
John Morgan and Emily Jeffcott, attorneys for the plaintiff, known by his initials R.K.C., said in a statement: "YouTube's decision to resolve this case before having to face a jury speaks for itself."
"We will continue fighting on behalf of all those affected by social media addiction to bring these companies to justice and compel them to prioritize the safety of their young users over their bottom lines."
R.K.C., a 16-year-old boy from Florida, said he started using social media when he was about eight, according to court filings. He became addicted to it, losing sleep and suffering from depression and anxiety, according to the filings.
R.K.C.'s lawsuit is set to be the second trial in California state court testing claims by individuals who say they were harmed by social media platforms deliberately designed to be addictive. The trial is scheduled to kick off July 27.
THOUSANDS OF CASES REMAINMore than 3,300 lawsuits involving addiction claims against social media companies are pending in California state court. Another 2,600 cases brought by individuals, school districts, municipalities and states are pending in California federal court.
The companies have denied the allegations and say they take extensive steps to keep teens and young users safe on their platforms.
The first trial, which ended in March, was in the case of a woman who said she became addicted to YouTube and Meta's Instagram at a young age because of their attention-grabbing design. A jury found the companies negligent and ordered Meta to pay $4.2 million in damages and Google to pay $1.8 million. Earlier this month, the judge rejected the companies’ bid to set aside that verdict.
The first trial in federal court had been set to begin in June in a lawsuit brought by a Kentucky school district against Meta, Snap, TikTok and YouTube. All of the companies settled before trial, paying the district a combined $27 million.
In addition to the cases in Los Angeles and in federal court, nearly every state in the country has filed lawsuits in its local courts against the companies. The lawsuits accuse the companies of misrepresenting the safety of their platforms for young users and of designing them to addict children.
In the first of the lawsuits by states to go to trial, a jury in New Mexico ordered Meta to pay the state $375 million after finding the company misrepresented the safety of Facebook, Instagram and WhatsApp. A judge is weighing whether to order the company to make changes to its platforms as part of a separate phase in the lawsuit.
Meta will face a trial in a lawsuit brought by Tennessee next month.
In August, a trial in federal court over the combined claims of multiple states will go forward against Meta.
Reporting by Diana Novak Jones; Editing by Jamie Freed, Alexia Garamfalvi and Cynthia Osterman
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Diana reports on product liability, litigation, mass torts and the plaintiffs' bar. She previously worked at Law360 and the Chicago Sun-Times.
For the first time in well over half a century, the trillion-dollar conglomerate that Warren Buffett built, Berkshire Hathaway (BRKA +0.68%)(BRKB +0.56%), is in uncharted territory. The Oracle of Omaha retired as CEO on Dec. 31, effectively handing the keys over to longtime protégé Greg Abel.
Abel has wasted no time making his presence felt. In under six months, he's completely revamped Berkshire's $336 billion portfolio. Most notably, indefinite holding Coca-Cola (KO +1.10%) has stepped aside as Berkshire Hathaway's No. 3 position, having been replaced by the new apple of Abel's eye: Google parent Alphabet (GOOGL +0.95%)(GOOG +0.74%).
Warren Buffett retired as Berkshire Hathaway's CEO on Dec. 31, 2025. Image source: The Motley Fool.
Alphabet may be the new Apple for Greg Abel According to Form 13F filings with regulators, Abel was a decisive buyer of Alphabet stock (both classes) during the first quarter. Despite being a net seller of stocks as a whole, he more than tripled Berkshire's stake in Alphabet's Class A stock (GOOGL) by purchasing 36,403,656 shares, and opened a new position in Alphabet's Class C stock (GOOG) with a 3,585,215-share buy.
But Abel wasn't done. On June 1, Alphabet announced an $80 billion equity offering (which was subsequently upped to $84.75 billion). Berkshire agreed to buy $10 billion in a private placement ($5 billion of each share class) at a slight discount to Alphabet's share price at the time.
Although it hasn't been confirmed if this private placement has closed, as of this writing on June 21, its presumptive closure would vault Alphabet into the No. 3 position in Berkshire Hathaway's portfolio, just ahead of Coca-Cola.
Alphabet (Google) is now Berkshire's third largest equity holding. pic.twitter.com/o9mAbjM1Nk
-- David Kass (@DrDavidKass) June 19, 2026 While Apple remains the largest holding by market value, we haven't witnessed such decisive buying from Berkshire's investment team, now led by Abel, in a long time.
Abel's full-bore buying of Alphabet stock clearly shows that tech stocks are back on the menu. While the Oracle of Omaha often shied away from tech stocks, because it wasn't a sector he understood very well, this isn't the case with Abel and his investment team.
Alphabet has established itself as an artificial intelligence (AI) leader. Though Wall Street's focus for years has been on the AI infrastructure build-out, Alphabet has taken the reins as an AI applications pioneer. Its integration of generative AI and large language model solutions into Google Cloud helped reaccelerate sales growth for this segment to 63% in the March-ended quarter.
Google's $GOOGL Cloud Backlog is growing exponentially. It nearly doubled in the most recent quarter and is expected to continue growing at a brisk pace...
Maybe the best segment of the Google empire. pic.twitter.com/QBO2eC0Hf3
-- Just a Dude Who Invests (@DudeWhoInvests) June 21, 2026 In addition to introducing a serious AI-driven growth element to Berkshire Hathaway's portfolio, Alphabet possesses a sustainable moat. Search engine Google accounts for around 90% of global internet search traffic, according to GlobalStats. This translates into exceptional ad pricing power for Alphabet.
But even though Alphabet is working its way up the ranks in Berkshire Hathaway's investment portfolio, Coca-Cola isn't going anywhere. It's Berkshire's longest-tenured stock (continuously held since 1988) and offers unrivaled geographic diversity, with ongoing operations in all countries, save North Korea, Cuba, and Russia.
Coca-Cola also provides Abel's company with an otherworldly dividend. Factoring in Berkshire's minuscule cost basis of $3.2475 per share for its Coca-Cola stake, the company is netting a roughly 65% annual yield on cost!
Nevertheless, Abel looks to have found his Apple -- and its name is Alphabet.
When Greg Abel took over for Warren Buffett as CEO in January, many were wondering what the new Berkshire Hathaway (BRKA +0.68%) (BRKB +0.66%) would look like. It hasn't taken long to see an early picture, as Abel has worked quickly to leave his mark.
Berkshire's new CEO has been deploying the company's cash hoard, including multiple investments in Alphabet (GOOG +0.74%) (GOOGL +0.95%). For investors, this shows not only that a new era of Berkshire is in full swing but also that Berkshire is offering a ringing endorsement of Alphabet.
Image source: Getty Images.
Not business as usual The first signal worth watching from this deal with Alphabet is Berkshire's aggressiveness. Since taking over for Buffett as CEO, Berkshire has exited multiple positionsand has agreed to acquire the homebuilder Taylor Morrison Home in an all-cash deal worth roughly $6.8 billion.
In addition, Berkshire's investing in Alphabet may indicate more openness to tech investments in the future. While Berkshire is still picking its spots and acting with purpose, it appears to be striking faster under Abel's early tenure. For some shareholders, that's welcome news, as they wanted to see some of the company's $397 billion cash pile (as of the end of March) put to use.
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A $1 trillion endorsement The second signal to watch from this news is the seal of approval Berkshire is placing on Alphabet. When a company worth more than $1 trillion wants to keep buying shares of a stock, it's about as strong an endorsement as you can get; Berkshire has been steadily buying shares of Alphabet since Q3 2025.
With Alphabet's market cap above $4 trillion as of June 22, it can be difficult to view it as undervalued. But Berkshire still worked out a deal in Alphabet's $80 billion equity offering.
It received $10 billion in Alphabet common stock in a private placement at a discount of more than 6% to Alphabet's June 1 closing price. Those shares were split between $5 billion in class A voting shares and $5 billion in class C nonvoting shares.
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The cost of being a leader In 2026, investors have seemed less patient than before with companies that talk about their artificial intelligence (AI) spending and have little to show for it. While Alphabet expects capital expenditures to fall in a range of $180 billion to $190 billion this year, the results from its spending are also showing up in its quarterly earnings reports.
In its 2026 first-quarter earnings report, Alphabet's cloud division reported that revenue increased 63% to $20 billion,with total revenue increasing 22% to $109.9 billion.
The investment from Berkshire provides financial backing, and it also offers a vote of confidence in Alphabet's vision. If it keeps building out AI infrastructure and the demand shows it justifies the costs, Berkshire and Alphabet shareholders will both be happy.
