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The U.S. Food and Drug Administration's advisory panel is set to vote on whether the benefits of Moderna's flu vaccine outweigh its risks in older adults, after regulators reversed course ​on rejecting the drugmaker's initial application for the shot.

FDA Prescription Drug User Fee Act (PDUFA) goal date remains August 5, 2026

CAMBRIDGE, MA / ACCESS Newswire / June 18, 2026 / Moderna, Inc. (NASDAQ:MRNA) today announced that the U.S. Food and Drug Administration's (FDA) Vaccines and Related Biological Products Advisory Committee (VRBPAC) voted 9-0 that the benefits of mRNA-1010, Moderna's investigational seasonal influenza vaccine, outweigh its risks for the prevention of influenza disease in adults 50 through 64 years of age and voted 9-0 that the benefits of mRNA-1010 outweigh its risks for the prevention of influenza disease in adults 65 years of age and older.

"We appreciate the thoughtful review by the members of VRBPAC and their recognition of the clinical evidence supporting mRNA-1010," said Stéphane Bancel, Chief Executive Officer of Moderna. "Influenza continues to cause substantial illness and hospitalizations among older adults each year. We believe mRNA-1010 has the potential to provide an important new option for seasonal flu prevention and further demonstrate the versatility of our mRNA platform. We look forward to continuing to work with the FDA as it completes its review."

According to the U.S. Centers for Disease Control and Prevention (CDC), seasonal influenza remains a significant public health burden.[1] Older adults account for a disproportionate share of severe influenza outcomes, including hospitalizations and deaths.

The VRBPAC discussion included data from Moderna's Phase 3 clinical program, including the primary analysis results from the pivotal Phase 3 clinical trial (NCT06602024), previously announced in June 2025 and recently published in The New England Journal of Medicine. These data further support the potential of mRNA-1010 to provide a differentiated non-egg-based option for influenza prevention in older adults.

The safety profile of mRNA-1010 observed in the Phase 3 program was consistent with previously reported studies of Moderna's influenza vaccine candidate.

The FDA will consider the recommendations of VRBPAC as part of its ongoing review of Moderna's Biologics License Application (BLA) for mRNA-1010. Advisory committee recommendations are non-binding, and the FDA is responsible for making the final approval decision.

mRNA-1010 has been accepted for regulatory review in the United States, European Union, Canada and Australia. Moderna has received a U.S. FDA Prescription Drug User Fee Act (PDUFA) goal date of August 5, 2026. Regulatory submissions in additional countries are planned during 2026.

About Moderna

Moderna is a pioneer and leader in the field of mRNA medicine. Through the advancement of its technology platform, Moderna is reimagining how medicines are made to transform how we treat and prevent diseases. Since its founding, Moderna's mRNA platform has enabled the development of vaccines and therapeutics across infectious diseases, cancer, rare diseases and more.

With a global team and a unique culture, driven by the company's values and mindsets, Moderna's mission is to deliver the greatest possible impact to people through mRNA medicines. For more information about Moderna, please visit modernatx.com and connect with us on X, Facebook, Instagram, YouTube and LinkedIn.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, including statements regarding: the benefit-risk profile of mRNA-1010; the FDA's ongoing review of the BLA for mRNA-1010 and the FDA's final approval decision; the PDUFA goal date; mRNA-1010's safety profile; ongoing regulatory reviews of mRNA-1010 in additional countries; and additional planned regulatory submissions for mRNA-1010. In some cases, forward-looking statements can be identified by terminology such as "will," "may," "should," "could," "expects," "intends," "plans," "aims," "anticipates," "believes," "estimates," "predicts," "potential," "continue," or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. The forward-looking statements in this press release are neither promises nor guarantees, and you should not place undue reliance on these forward-looking statements because they involve known and unknown risks, uncertainties, and other factors, many of which are beyond Moderna's control and which could cause actual results to differ materially from those expressed or implied by these forward-looking statements. These risks, uncertainties, and other factors include, among others, those risks and uncertainties described under the heading "Risk Factors" in Moderna's Annual Report on Form 10-K for the fiscal year ended December 31, 2025, filed with the U.S. Securities and Exchange Commission (SEC), and in subsequent filings made by Moderna with the SEC, which are available on the SEC's website at www.sec.gov. Except as required by law, Moderna disclaims any intention or responsibility for updating or revising any forward-looking statements contained in this press release in the event of new information, future developments or otherwise. These forward-looking statements are based on Moderna's current expectations and speak only as of the date of this press release.

###

Moderna Contacts

Media:
Chris Ridley
Vice President, Global Head of Communications
+1 617-800-3651
[email protected]

Investors:
Lavina Talukdar
Senior Vice President & Head of Investor Relations
+1 617-209-5834
[email protected]

[1] https://www.cdc.gov/flu/whats-new/2025-2026-influenza-activity.html

SOURCE: Moderna, Inc.

Key Takeaways MRNA gained 3.5% after FDA advisers unanimously backed mFlusiva for older adult flu prevention.A 9-0 VRBPAC vote boosted confidence ahead of the FDA's Aug. 5, 2026, BLA decision on mFlusiva.MRNA sees mFlusiva as key to expanding beyond COVID-19 and supporting its respiratory vaccine franchise. Moderna (MRNA - Free Report) shares gained 3.5% on Thursday after the company cleared a key regulatory hurdle for its investigational seasonal influenza vaccine, mFlusiva (mRNA-1010). The positive move followed a unanimous endorsement from the FDA's Vaccines and Related Biological Products Advisory Committee (VRBPAC), which voted 9-0 that the vaccine's benefits outweigh its risks for the prevention of influenza disease in adults aged 50-64 and in those aged 65 and older.

This outcome was expected since the briefing documents for the committee meeting were issued by the FDA earlier this week. Several investors had construed these documents to be broadly constructive and significantly less negative than anticipated. The FDA staff did not identify any major deficiencies in Moderna's biologics license application (BLA) for mFlusiva in influenza and acknowledged the data supporting the vaccine.

The investors had earlier braced for a more difficult regulatory review after the FDA initially declined to review Moderna's mFlusiva BLA in February due to concerns related to the study design in adults aged 65 years and older. The agency later reversed course after Moderna revised its regulatory strategy for the vaccine based on age. The BLA was subsequently modified to seek traditional approval of mFlusiva in adults aged 50-64 years and accelerated approval for adults aged 65 years and older.

Year to date, MRNA stock has skyrocketed 116.9% against the industry’s 1% decline.

Image Source: Zacks Investment Research

The advisory committee's backing is viewed as an important step toward potential approval, significantly improving investor confidence ahead of the FDA's Aug. 5, 2026, decision date for Moderna's mFlusiva BLA for influenza. While the FDA is not obligated to follow advisory committee recommendations, a unanimous endorsement from VRBPAC is widely viewed as a positive signal that strengthens the vaccine's prospects for approval and reduces regulatory uncertainty.

The panel's review was based on data from Moderna's phase III influenza vaccine program, including results from its pivotal late-stage study that demonstrated the vaccine's potential as a non-egg-based alternative for seasonal flu prevention in older adults. The safety findings discussed during the meeting were consistent with previously reported studies, further supporting the vaccine's regulatory case.

With regulatory reviews already underway in the United States, the EU, Canada and Australia, the unanimous VRBPAC vote strengthens expectations that mFlusiva could become Moderna's next commercially important vaccine product. Regulatory submissions in additional countries are also planned during 2026.

Why Is the VRBPAC Meeting Outcome Important for Moderna?The unanimous VRBPAC vote carries significance beyond the potential approval of mFlusiva. Moderna's long-term growth strategy increasingly depends on expanding its respiratory vaccine franchise beyond COVID-19, and a successful flu vaccine launch would provide the company with an important new commercial product in a large seasonal market. It would also further validate the versatility of Moderna's mRNA platform in infectious diseases.

The opportunity is particularly important given the substantial burden of seasonal influenza among older adults, a population that accounts for a disproportionate share of flu-related hospitalizations and deaths. If approved, mFlusiva could strengthen Moderna's position in respiratory vaccines while reducing the company's reliance on its COVID-19 franchise.

Investors are also focused on the broader pipeline implications. Regulatory progress for mFlusiva could provide greater clarity for mCombriax (mRNA-1083), Moderna's combination influenza/COVID vaccine. Moderna withdrew a filing for the vaccine last year after the FDA requested additional efficacy data related to the influenza component. Since mCombriax incorporates the same influenza component used in mFlusiva, a favorable regulatory path for the flu vaccine is viewed as an encouraging signal for the combination vaccine’s prospects. Moderna is currently awaiting further FDA guidance regarding a potential future filing for mCombriax. This combination vaccine recently secured approval in the EU.

MRNA’s Zacks Rank & Stocks to ConsiderModerna currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Liquidia Corporation (LQDA - Free Report) , Indivior Pharmaceuticals (INDV - Free Report) and Immunocore (IMCR - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Liquidia Corporation’s 2026 EPS have increased from $1.50 to $2.97. Over the same period, EPS estimates for 2027 have also increased from $2.91 to $4.81. LQDA shares have rallied 106.1% year to date.

Liquidia Corporation’searnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 54.40%.

Over the past 60 days, estimates for Indivior Pharmaceuticals’ 2026 earnings per share have increased from $3.33 to $4.05. Over the same period, EPS estimates for 2027 have risen to $4.27 from $3.66. INDV shares have gained 6.7% year to date.

Indivior Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, with the average surprise being 65.44%.

The estimate for Immunocore’s 2026 EPS is currently pegged at 6 cents. In the past 60 days, the estimates for its 2027 EPS have increased from 24 cents to 87 cents. IMCR shares have lost 17.6% year to date.

Immunocore’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 46.66%.

Moderna (MRNA 0.67%) stock skyrocketed in early pandemic days -- and the company became a household name -- as it launched its coronavirus vaccine. This first product, and one using the new messenger RNA technology, brought in billions of dollars in revenue and proved the efficacy of mRNA.

But in recent years, as demand for the vaccine declined, Moderna's earnings followed. The company suffered various setbacks, such as the failure of its cytomegalovirus (CMV) vaccine candidate in late-stage trials, and investors no longer rushed to get in on this biotech stock.

Things may be turning around for Moderna, though: The stock has soared more than 100% since the start of the year. And just recently, the company announced positive news -- to be confirmed on or before Aug. 5. Should you buy Moderna stock before that date? Let's find out.

Image source: Getty Images.

Moderna's mRNA technology So first, let's take a quick look at the Moderna story and strategy. As mentioned, the company took center stage during early pandemic days, thanks to its coronavirus vaccine. Moderna uses mRNA in this product and throughout its pipeline, and it works by teaching the body to make proteins to fight off a particular virus or disease.

The coronavirus approval offered Moderna the opportunity to prove that this technique works -- and Moderna went on to win approval for a respiratory syncytial virus (RSV) vaccine and a second coronavirus vaccine.

Meanwhile, the company continued shepherding other candidates through the pipeline -- from respiratory and latent virus vaccine candidates to investigational oncology and rare disease therapeutics. Moderna suffered setbacks in recent years, from RSV vaccine sales coming in lower than expected to the failure of its CMV candidate -- one that was expected to become a blockbuster -- in a phase 3 trial.

But setbacks are part of the story for all biotech and pharma companies and don't necessarily alter the long-term growth story. In this case, the failures don't call into question Moderna's mRNA technology, and the company's pipeline is strong, with many promising candidates. All of this is positive.

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Three potential product launches In fact, Moderna is gearing up for potential product launches in the coming years. The biotech aims to release three, including a combination flu and coronavirus vaccine, and seasonal flu and norovirus vaccines, over 2027 and 2028. The company says late-stage data from rare disease and oncology trials may also lead to launches in those areas just ahead. So Moderna may be at a key transition point right now, and investors have recognized this, as we can see through the stock price performance since the start of the year.

Now, let's consider what's about to unfold on or just before Aug. 5. It has to do with the company's investigational flu vaccine candidate, mRNA-1010. A U.S. Food and Drug Administration advisory panel voted unanimously in favor of the candidate, a vote that the benefits outweigh the risks. The independent committee voted in favor for the 50 to 64 age group and the 65-and-older age group.

An Aug. 5 deadline Now, the FDA has a deadline of Aug. 5 to issue a decision regarding the vaccine. Though the regulatory agency doesn't have to follow the recommendation of the committee, it generally does -- so there is reason for investors to be optimistic about what might unfold. And this puts Moderna's flu candidate on track to launch for the 2026-2027 flu season.

Does all of this make Moderna a buy today? Moderna clearly has reached a key turning point, with many potential revenue drivers ahead, and that makes now a great time to be a shareholder. It's important to keep in mind that some risk is involved. Even if Moderna wins approval of its flu vaccine, soaring sales may not happen overnight. Still, this would be a critical step forward for the company as it builds out its presence as a multi-product commercial-stage biotech.

Moderna stock has climbed quite a bit this year, so a lot of the good news could be priced in at today's levels. A potential flu vaccine approval may result in a pop for the stock price, but I don't think gains will continue on uninterrupted. There may be opportunities in the near future and after Aug. 5 to buy Moderna on the dip -- and that's when growth investors should make the move.

Intel (NASDAQ: INTC | INTC Price Prediction) and Qualcomm (NASDAQ: QCOM) both just delivered earnings that tell very different stories about how to win in AI silicon. Intel posted a sixth straight revenue beat while absorbing a $4.07 billion Mobileye charge. Qualcomm landed its fourth consecutive EPS beat with handset weakness offset by record auto.

Foundry Momentum Carries Intel. Cars Carry Qualcomm. Intel’s Q1 FY2026 earnings report showed $13.577 billion in revenue, up 7.2% year over year, with Data Center and AI climbing 22% to $5.052 billion and Intel Foundry up 16%.

CEO Lip-Bu Tan framed the moment plainly: “The next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic.” Non-GAAP gross margin expanded to 41%, a real signal that the 18A ramp is paying off.

Qualcomm’s quarter looked steadier and stranger. Revenue of $10.599 billion slipped 3.46% year over year. Handsets fell 13% to $6.024 billion on memory constraints and weak Chinese OEM demand.

Automotive ripped 38% higher to a record $1.326 billion, and IoT added 9%. Cristiano Amon told investors Qualcomm is now “in a period of profound industry transformation” tied to AI agents.

One Rebuilds Manufacturing. One Buys Back Stock. The strategic split is the whole story. Intel is pouring capital into wafers, with $4.963 billion in Q1 capex, an Ireland fab buyback, and a fresh Penang expansion.

Qualcomm is doing the opposite, returning cash aggressively. Management authorized a $20 billion repurchase and bought back $2.8 billion in shares last quarter alone.

Lens Intel Qualcomm Core Bet U.S. foundry plus Xeon for AI hosts Snapdragon expansion into auto and data center Marquee Win Xeon 6 selected for NVIDIA DGX Rubin NVL8 Hyperscaler custom silicon shipping in 2026 Key Vulnerability GAAP losses, capex risk if 14A demand slips Handset concentration, Apple vertical integration Intel’s forward P/E of 154 reflects an earnings recovery the market is willing to underwrite. Qualcomm trades at a far more grounded 24 trailing P/E with a 1.67% yield. Two different risk profiles, same end market.

The Next Test Is Whether Diversification Sticks I will be watching Intel’s Q2 guide of $13.8 billion to $14.8 billion and whether 18A yields hold as volume scales. The Google ASIC partnership and the reported Apple production tie-up could reshape the foundry narrative if either delivers signed wafer commitments.

For Qualcomm, the June 24 Investor Day is the catalyst. The key items to watch are hard data center revenue targets and any color on the Alphawave integration. The Chinese handset trough is expected to bottom in Q3 and recover in Q4, so any slip there changes the math fast.

Why I Lean Toward Qualcomm If I Had to Choose Today Intel’s chart has been remarkable. The stock is up 263.12% year to date and 100.64% since the April earnings release. That run already prices in a lot of foundry success that has yet to show up in GAAP profit.

For me, Qualcomm’s mix of record auto growth, a real dividend, and a credible data center entry feels easier to underwrite. Intel offers turnaround torque for investors who can tolerate restructuring noise, while one more clean quarter would further validate the thesis.

A panel discussion on episode 1,089 of This Week in Tech (TWiT) debated sky-high AI valuations and capital allocation, with host Leo Laporte and guests Ian Thompson, Owen Thomas, and Doc Rock. They argued that today’s AI leaders face the same capital-allocation challenge that confronted earlier technology giants.

Their warning centered on Intel (NASDAQ:INTC | INTC Price Prediction), which Thompson described as a company that spent heavily on share buybacks while falling behind in manufacturing technology. With Anthropic reportedly approaching a $1 trillion valuation and OpenAI valued at more than $850 billion, the panel argued that how AI companies deploy capital may matter just as much as how quickly they grow.

Ian Thompson’s Warning About Share Buybacks and Innovation Thompson’s argument: AI giants risk repeating what he framed as Intel’s defining error. He said Intel “spent billions buying back its own shares to support the share price and let chip manufacturing technology just lie useless. And now they’re paying the price for it.” Thompson added that share buybacks were illegal until Reagan-era reforms in the 1980s.

The market has repriced that thesis in real time. Intel shares closed at $133.99 on June 18, with the stock up 263.12% year to date and 523.5% over the trailing year. CEO Lip-Bu Tan told investors on the Q1 FY2026 call that “the next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic. This shift is significantly increasing the need for Intel’s CPUs and wafer and advanced packaging offerings.”

Intel’s Q1 FY2026 earnings release showed revenue of $13.58 billion, up 7.2% year over year, with Data Center & AI revenue of $5.05 billion (+22% YoY) and Intel Foundry revenue of $5.42 billion (+16% YoY).

Why Anthropic’s $1 Trillion Valuation Matters According to the panel, Anthropic has edged past OpenAI to nearly a $1 trillion valuation as a privately held company, a milestone a guest called “unprecedented.” The reporter noted that OpenAI counts 1 billion weekly active users and raised financing at an $852 billion valuation, while cautioning that OpenAI’s reported losses are complicated by its nonprofit-to-for-profit conversion and non-cash stock compensation. The guest also said OpenAI has reportedly confidentially filed to go public but may delay the IPO.

How Executive Incentives Can Distort Capital Allocation Doc Rock connected the buyback debate to executive compensation, citing former AT&T (NYSE:T) CEO Randall Stephenson as an example of misaligned incentives. Stephenson received roughly $48 million in annual salary, while AT&T nearly tanked. Doc Rock and host Leo Laporte argued that buybacks can sometimes reward executives and drive the share price higher without necessarily improving a company’s long-term competitive position.

AT&T, under CEO John Stankey, has pivoted toward fiber and wireless. AT&T’s Q1 FY2026 adjusted EPS came in at $0.57 on revenue of $31.51 billion (+2.9% YoY), with 584,000 internet net adds in the quarter. Management reiterated full-year 2026 guidance for adjusted EPS of $2.25 to $2.35 and free cash flow of $18 billion-plus. The shares closed at $22.01 on June 18, down 9.42% year-to-date and 16.95% over the trailing year. AT&T trades at a trailing P/E of 7 with a dividend yield of 4.95%.

What Investors Should Watch Next The panel closed skeptical over how much of the headline AI valuations reflects real value rather than “funny money.” The practical question today is whether AI infrastructure leaders are reinvesting in manufacturing capacity, talent, and intellectual property at a pace that justifies private-market valuations, or whether they tilt toward managing shareholder returns before the technology cycle matures. Intel’s foundry buildout and AT&T’s fiber capex offer investors two case studies in how large-scale capital allocation decisions can affect a stock’s long-term returns and competitive position.

Intel (INTC 1.39%) has been losing ground to Advanced Micro Devices (AMD 1.77%) in the server central processing unit (CPU) market, primarily due to the superior performance and lower costs of the latter's Epyc server CPUs.

In fact, AMD seems better-positioned to capitalize on the growth of the server CPU market right now. After all, AMD is gaining share at a nice clip in server CPUs, a market that has received a nice shot in the arm thanks to the growing demand for AI inference workloads. Intel, however, is preparing to fight back against AMD, as evident from its latest move.

Image source: Intel.

Intel is looking to close the technology gap with AMD Intel recently announced that its advanced 18A-P process node is now in risk production. This is the stage during which chips are produced in low volumes to gather data on whether they will meet customer requirements, what their defect rate is, and whether they deliver the claimed performance and efficiency gains.

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It is worth noting that Intel 18A-P is a refined version of the company's 18A process node. The company is promising a 9% improvement in performance compared to the 18A at identical power consumption. Meanwhile, the 18A-P node uses 18% less power while operating at the same performance level as the 18A. Even better, Intel points out that the refined process node is 20% to 40% more thermal resistant, suggesting that it will cost less to cool.

The risk production phase is ideally followed by volume production within the next 12 to 24 months, as noted by Tom's Hardware. However, as this is the refined version of an existing node, it is likely to take less time to get to that point. Intel has started volume production of client and server chips based on the 18A process already and noted on the April earnings call that this is the "fastest new product ramp in five years."

Importantly, the Xeon 6 server processor, manufactured using Intel 18A, is gaining traction among server CPUs. Nvidia has selected it for its Rubin rack-scale servers. Moreover, Intel points out that demand for its Xeon server CPUs exceeds supply, suggesting that the company's most advanced process node could allow it to arrest the market share slide it has been experiencing in the CPU market.

Of course, it remains to be seen how Intel 18A-P fares in the risk production phase. However, since the company has already brought the 18A into volume production, there is a good chance the 18A-P will make the cut and enter volume production as well. This could give Intel a much-needed boost against AMD.

Why the 18A-P process could be an important one for Intel Intel's share of the server CPU market slid by six percentage points year over year to 66.8% in the first quarter of 2026, according to Mercury Research. The chip giant's share of consumer CPUs, meanwhile, dropped by 5.5 percentage points to 70.4%. AMD accounted for the rest of the market.

What's more, AMD's revenue share of these markets is higher than its unit share, suggesting that it enjoys stronger pricing power. If Intel manages to deliver the performance gains it claims and helps lower costs for users by reducing cooling requirements, it can indeed stop AMD from clawing away more market share.

An important point worth noting is that Intel's data center and AI (DCAI) products and the foundry business are already showing promising signs of growth. The company's DCAI revenue increased by 22% year over year in Q1 to $5.1 billion, while the foundry business recorded 16% growth to $5.4 billion. The mass production of the 18A-P node could give both these businesses a shot in the arm.

While Intel will be able to produce more powerful and power-efficient chips thanks to a more advanced node, it is believed that the 18A-P could help it land Apple as a foundry customer. Given that the DCAI and foundry segments produced a combined $10.1 billion revenue out of Intel's overall revenue of $13.6 billion in Q1, they can move the needle in a bigger way for the company, thanks to its product development moves.

As a result, don't be surprised to see Intel's revenue growth exceeding analysts' expectations of around 10% growth going forward.

Data by YCharts

That's why it may be a good idea for investors to continue holding this AI stock, as the advancements it is making on the product side could help it deliver stronger-than-expected growth, which may translate into more stock price upside.

Jim Cramer, the longtime host of CNBC's Mad Money, recently named Intel (INTC 1.39%) his top artificial intelligence (AI) chip stock. This was a pretty bold move considering that the stock has already rallied by 263% so far this year.

Indeed, Cramer commands one of the more durable audiences in retail investing. His rapid-fire delivery and unfiltered opinions have resulted in countless soundbites featuring actionable investment ideas amid market noise. With that said, his visibility can be polarizing, and detractors often label his calls hyperbolic -- noting the many instances where his enthusiasm has outpaced important nuance or his timing has proven inaccurate.

Nevertheless, his Intel bull thesis centers on two underappreciated dynamics: the company's CPU heritage as the artificial intelligence revolution heads towards its agentic AI era, and the tangible signs that its chip foundry operation is stabilizing. These points deserve scrutiny rather than a simple echo of pundit commentary. Let's dig in to see if Cramer is right.

Image source: The Motley Fool.

Move over, GPUs -- CPUs are making a comeback When given a specific objective to accomplish, agentic AI systems can plan out a set of steps, gather data, and follow through with multistep actions to complete it with minimal human oversight. These software models are changing the nature of the accelerated computing equation, moving it beyond its prior focus on parallel processing power. When it comes to training generative models and basic inference deployments, the complex matrix operations involved need to be handled by GPUs or other types of parallel processing chips. But when users are deploying fleets of autonomous agents, that introduces orchestration layers that CPUs handle more efficiently.

During the earlier stages of the AI revolution, hyperscalers could sequence their chip purchases: first securing massive GPU clusters from Nvidia, and then retrofitting their servers or expanding CPU capacity later as their utilization needs became clearer. This tactic worked when AI workloads were dominated by generic training jobs or simple inference serving.

However, the rise in agentic workloads is inverting the old logic. GPU servers already connect each accelerator with a host CPU to manage traffic, memory coherency, and virtualization. The growth of agentic deployments exponentially multiplies the volume of CPUs required. Because each agent instance can create its own dynamic sub-tasks by querying external APIs and maintaining persistent context, the CPU architectures to support the whole system must now be procured and installed earlier in the process.

Intel's long history in server CPU production positions it to capture incremental socket demand that pure-play GPU designers will struggle to meet. The result is not a zero-sum displacement of GPUs, but a multiplier effect whereby each new tranche of AI accelerators sold results in orders for the CPUs that will make those clusters usable at scale.

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Intel's foundry recovery has been gradual, but respectable Throughout most of the AI revolution, Intel struggled with advanced-node chip manufacturing. Recent capital investments from both Nvidia and the U.S. government, as well as the hiring of Lip-Bu Tan as CEO last year, have helped the company make rapid improvements in the foundry operation.

During the first quarter, Intel's foundry business generated $5.4 billion in revenue -- an increase of 16% year over year. While this may look impressive on the surface, external foundry revenue -- sales that are not attributed to Intel's own products -- was only $174 million. Meanwhile, the foundry unit is still operating at a hefty loss.

Nevertheless, I think that a credible turnaround of Intel's foundry operation actually matters less for its own chips than for the broader AI infrastructure ecosystem. What I mean by that is that the chip sector's concentrated reliance on a single offshore manufacturer (Taiwan Semiconductor Manufacturing) introduces a number of potential points of failure -- geopolitical, logistical, or capacity-related.

Sophisticated buyers are going to increasingly price these factors into their capex plans. Against this backdrop, Intel's ability to secure more external customers for its leading-edge process nodes would validate its recovery and help it diversify its revenue sources away from its legacy integrated devices. While its external foundry business is still small, it has grown nearly sixfold year over year. I'm cautiously optimistic the company can capitalize on the demand tailwinds going forward.

Is Intel stock still a buy? Intel stock's massive upward moves this year have already priced in considerable optimism about AI tailwinds. To achieve sustained share-price appreciation from here will require Intel to convert the CPU demand thesis into measurable design wins and achieve foundry milestones without the multiyear delays that have previously plagued it.

Furthermore, it's important to realize that we are early in the agentic AI era. The infrastructure build-out required to support mass adoption of these applications will likely unfold more gradually than many pundits have predicted. Ultimately, this will give Intel's competitors in the chip design space some time to respond.

Nevertheless, the combination of the resurgent relevance of CPUs and Intel's recent validation as a third-party foundry gives it a degree of optionality that GPU-centric companies lack. Investors evaluating Intel are effectively betting that the next phase of the data center infrastructure build-out will reward balance across the AI chip stack over specialized products.

While Cramer's endorsement amplifies Intel's visibility, the underlying buy case should rest on more observable shifts in AI workload composition and supply chain choices. Whether this translates into durable earnings growth will depend on management's execution, which is never guaranteed. With that said, the directional logic of paired CPU-GPU demand and chip designers' desire to reduce the reliance on overseas foundry partners is enough to at least justify paying close attention to Intel's fundamentals rather than dismissing Cramer's commentary as mere market theater.

Tech stocks are getting battered as investors fret about higher interest rates and mega-cap hyperscalers' aggressive AI spending plans.

Intel Today

$130.20 -2.08 (-1.57%)

As of 09:44 AM Eastern

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52-Week Range$18.97▼

$141.45Price Target$87.98

Intel Corporation NASDAQ: INTC has orchestrated a historic market reversal over the past six months, surging 281.8% year to date to trade near $141 per share. Investors evaluating this massive valuation expansion must look past legacy personal computer processor sales. The current momentum stems entirely from a highly subsidized, state-backed transition into a sovereign foundry powerhouse capable of rivaling Taiwan Semiconductor Manufacturing Company NYSE: TSM.

By securing unprecedented government backing and aggressively poaching top-tier manufacturing talent, Intel Corporation is systematically dismantling the primary barriers to domestic silicon fabrication. The thesis driving capital into Intel Corporation centers on a specific, highly lucrative bottleneck in the artificial intelligence (AI) hardware supply chain: advanced packaging.

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Stacking the Deck Against Overseas FoundriesModern artificial intelligence accelerators are no longer monolithic silicon chips. They rely on complex architectural designs that stack high-bandwidth memory directly alongside logic dies. This intricate physical assembly requires specialized back-end packaging technologies.

Currently, the broader semiconductor sector is constrained by the physical capacity limits of existing packaging lines. Taiwan Semiconductor Manufacturing Company operates the dominant advanced packaging platform, but surging order volumes from hyperscalers have left those facilities severely oversubscribed. Major fabless designers are now scrambling for alternatives.

Recognizing this structural industry shortfall, management at Intel Corporation executed a decisive leadership overhaul on June 18, 2026, carving out advanced packaging into an independent, hyper-focused business division.

To lead this critical unit, the board appointed Seok-Hee Lee as Executive Vice President. Lee brings invaluable operational experience from his tenure as chief executive officer of SK hynix, the exact memory giant that pioneered high-bandwidth memory integration. Placing a seasoned memory and packaging veteran directly in charge of commercializing proprietary technologies like Embedded Multi-die Interconnect Bridge-T and High-Density Hybrid Bonding signals a sharp operational pivot. The industry is recognizing that back-end packaging is just as critical to computing performance as shrinking transistor sizes.

Analysts are taking note of the revenue potential independent of traditional front-end wafer fabrication. Mizuho Securities recently raised its price target for Intel Corporation to $135, citing the potential for these distinct back-end packaging platforms to capture 10% to 15% of the total addressable market over the long term. Bank of America followed with an even more aggressive move, raising its price target on Intel Corporation to $160 from $135, marking its second target increase this month. While Mizuho’s upgraded target still trails Intel Corporation’s recent share price, Bank of America’s higher target suggests that parts of Wall Street still see upside despite the stock’s massive rally.

Apple and NVIDIA Validate the 18A-P NodeTo operate successfully as a contract foundry, a facility must demonstrate high, defect-free yields at volume. The clearest signal of yield viability comes from the capital commitments of industry leaders. The physical foundation for this validation was presented at the Honolulu VLSI Symposium earlier this month, where engineers from Intel Corporation confirmed that the enhanced 18A-P manufacturing process had officially entered risk production. This specific node delivers a 9% performance increase at equal power, an 18% power reduction at equal performance, and a 20% to 40% reduction in thermal resistance compared to standard 18A iterations.

Those thermal efficiencies perfectly position the 18A-P node for mobile and consumer computing applications. Days after the symposium, reports surfaced detailing a preliminary agreement with Apple Inc. NASDAQ: AAPL to shift production of mature M-series processors and iPad chips to domestic fabrication lines utilizing the 18A-P process. While volume production is not expected to scale until mid-2027, securing the world's most demanding supply chain operator serves as the ultimate commercial validation for the new domestic nodes.

This consumer-level agreement pairs seamlessly with heavier data center initiatives. In December 2025, NVIDIA Corporation NASDAQ: NVDA finalized a $5 billion strategic equity investment in Intel Corporation, taking a roughly 4% stake at $23.28 per share. The two entities are co-developing multiple generations of custom x86 processors featuring high-speed interconnect integration. Embedding domestic manufacturing directly into the core of the leading artificial intelligence hardware ecosystem effectively creates an industry-wide backstop for Intel Corporation's survival.

Weighing Sovereign Backing Against RealityThe geopolitical necessity of a domestic semiconductor supply chain provides a unique floor for Intel Corporation. Brokered in August 2025, the U.S. government established a direct 10% equity stake via an initial $10 billion investment package. As Intel Corporation's market capitalization recently crossed $708 billion, its sovereign position has appreciated to more than $70 billion. Aligning national security interests directly with the foundry's financial viability mitigates the extreme downside risks that typically accompany a turnaround story of this magnitude.

Investors must square this immense structural optimism with harsh financial realities. Contract manufacturing is a highly capital-intensive business in which utilization rates determine profitability. If fabrication plants do not run at near-maximum capacity, depreciation costs rapidly erode margins.

Overall MarketRank™68th Percentile

Analyst RatingHold

Upside/Downside33.5% Downside

Short Interest LevelHealthy

Dividend StrengthN/A

News Sentiment0.97 Insider TradingSelling Shares

Proj. Earnings Growth53.97%

See Full Analysis

Intel Corporation currently trades at a stretched forward price-to-earnings ratio of 223x. The foundry division continues to post massive operating deficits, absorbing a $2.4 billion loss in the first quarter of 2026 alone. Heavy capital expenditures required to equip the localized Arizona facilities will guarantee continued margin compression for at least the next four to six quarters.

Comparing Intel Corporation to its primary overseas rival highlights the premium investors are currently paying. Taiwan Semiconductor Manufacturing Company maintains a trailing price-to-earnings ratio of nearly 38x while already controlling 70% of the contract manufacturing market. Intel Corporation is currently pricing in years of flawless execution, creating a significant execution gap between today's capital outlays and mid-2027 revenue realization.

Despite the staggering multiples, institutional capital continues to flow toward the domestic production narrative. The institutional consensus reflects a firm belief that the shift in capital expenditure back toward domestic fabrication will generate cash flows large enough to justify the current premium valuation. Short interest remains remarkably low at just 2.69% of the public float, indicating a distinct lack of bearish conviction against the sovereign-backed rally.

Silicon Supercycle: Constructing a Position in American SiliconThe fundamental transition of Intel Corporation from a legacy designer to an essential contract manufacturer is fraught with capital-intensive hurdles. The aggressive restructuring of the advanced packaging division under proven leadership indicates that management correctly identifies where the actual value lies in the modern chip cycle.

Those looking to allocate capital in the semiconductor space may want to monitor the timeline for the 18A-P node as it moves from risk production to commercial scaling. Investors comfortable with near-term margin compression and elevated volatility might view pullbacks as an opportunity to gain exposure to the only viable onshore alternative to overseas fabrication. Cautious market participants may prefer to wait for the foundry division of Intel Corporation to string together two consecutive quarters of narrowing operating losses before establishing a full position.

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Bank of America raised its outlook for several semiconductor companies, including Intel INTC , Arm Holdings ARM and Micron Technology MU , after concluding that demand tied to artificial intelligence infrastructure may remain visible through at least 2028.

The firm increased its projections for global wafer fabrication equipment spending, which covers tools used to manufacture semiconductors. Bank of America now forecasts the market will reach $190 billion in 2027 and expand to $250 billion in 2028, reflecting a stronger trajectory than previously expected.

According to Bank of America, the revised outlook is supported by additional cleanroom capacity coming online, longer-duration agreements in the memory market and ongoing technology transitions that could increase equipment requirements for chip production. The firm also pointed to operational and capacity developments at Intel and Samsung as factors that may support advanced manufacturing activity in coming years.

Separately, Bank of America lifted its estimate for the semiconductor industry's total addressable market to $2.7 trillion, up from a prior forecast of $2.3 trillion. The brokerage said memory products and data-center infrastructure are expected to account for much of that expansion, while automotive and industrial end markets could provide an additional source of growth as those segments continue to recover.

Shares of tech giant Apple Inc. NASDAQ: AAPL are trading just under $300 this week, as they continue to bounce off their low from earlier this month and move back towards the all-time high they hit a few weeks ago.

Apple Today

$295.77 +1.47 (+0.50%)

As of 09:44 AM Eastern

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52-Week Range$199.26▼

$317.40Dividend Yield0.37%

P/E Ratio35.72

Price Target$314.85

The bull case for the stock has been quietly strengthening despite the wobble that followed the recent Siri AI announcement. The latest piece of news adds another credible reason to think the next leg higher could already be underway.

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It was reported late last week that Apple has agreed to partner with Intel NASDAQ: INTC to design and manufacture some of its chips in the United States. It's a deal that, at first glance, seems to come out of nowhere, given Apple's history of moving away from Intel chips to its own in-house Apple Silicon several years ago.

However, when you start digging into the timing and the broader pressures the company has been navigating, it's hard to see this as anything other than a seriously strategic move. Let's jump in and see why below.

Why the Timing Is So CompellingThe big picture here is that Apple has been quietly grappling with several significant supply chain headaches, and this deal helps to ease them. The main one is memory chip pricing. As we covered recently, surging costs have begun to bite into Apple's margins to the point that Tim Cook has publicly acknowledged that the "situation has become unsustainable" and that "price increases are unavoidable." That's the kind of statement that doesn't get made lightly, particularly by a CEO famous for measured language.

Layered on top of that is Apple's longstanding overdependence on Taiwan Semiconductor Manufacturing Company NYSE: TSM for its most advanced chips. TSMC's production lines are in extraordinary demand from AI chipmakers like NVIDIA NASDAQ: NVDA and Advanced Micro Devices NASDAQ: AMD, which have steadily pushed up costs and intensified the risk of bottlenecks for everyone who relies on the foundry.

The Right Deal at the Right TimeApple has been chasing a more diversified manufacturing footprint for years, with expansion into Vietnam, India, and the US, but a deal of this scale with Intel takes that effort to a whole new level.

The team at Wedbush put it well, noting that "this is the right time to do this deal with Apple looking to diversify its manufacturing footprint" while demand for advanced chips continues to climb. Coming as it does just ahead of what's expected to be a multi-year AI-driven device cycle, the deal effectively locks in domestic capacity right as Apple's AI ambitions begin to take shape.

A Political Tailwind That's Hard to IgnoreThe other reason this deal looks so well-timed is the wider political backdrop. The US administration has made it a stated priority to bring semiconductor manufacturing back to American soil, and Intel has emerged as the central beneficiary of that policy. Apple's agreement to partner with Intel on domestic production, therefore, brings the company directly into alignment with that political direction of travel.

For a multinational of Apple's scale, that's a strategic move on multiple levels. As we've seen with other big tech names in recent months, being on the wrong side of US trade and manufacturing policy can quickly turn into a sustained headwind.

By proactively committing to domestic chip production, Apple has essentially insulated itself from a chunk of that risk in one move, while also strengthening its standing as one of the largest investors in US manufacturing.

How This Supports Higher PricesOverall MarketRank™92nd Percentile

Analyst RatingModerate Buy

Upside/Downside6.7% Upside

Short Interest LevelHealthy

Dividend StrengthStrong

News Sentiment0.88 Insider TradingSelling Shares

Proj. Earnings Growth9.50%

See Full Analysis

There's a third reason this deal is being received so well: it lays the groundwork for Apple to potentially raise prices on its core products with significantly less risk. With Tim Cook already flagging that price hikes are coming, likely in September alongside the new iPhone lineup, the Intel partnership gives Apple a credible story to tell consumers and shareholders about why those higher prices are sustainable.

Wedbush analyst Dan Ives said Apple is in a strong position to raise prices without sacrificing hardware performance or increasing customer churn, citing the company’s growing focus on higher-end consumers. That bullish view is also reflected in Apple’s Moderate Buy consensus rating, which suggests Wall Street remains constructive despite the stock’s recent wobble. For investors, that’s close to the dream scenario, and one that few companies could deliver at Apple’s scale.

The Bigger Picture for the StockWith Apple now firmly in motion on its AI strategy, the Intel partnership cementing a more resilient supply chain, and the broader political winds at its back, the company is going into the second half of the year with arguably its strongest setup in a long time.

And while the price action at the start of June briefly suggested otherwise, the underlying picture is becoming more optimistic by the day.

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A while ago, Intel (INTC 1.39%) was left for dead by the market. The market had a good reason: Its foundry business was losing a ton of money, and its chip technology was starting to lose to competitors. However, after a series of investigations from the U.S. government and other entities like Nvidia, it's starting to look like it's coming around.

The reality is that Intel is too important to national infrastructure to fade into obscurity, and getting it back into top shape was a top priority for the U.S. government. Fortunately, investors are starting to see major signs of improvement in Intel. One of those came in the form of a new deal with one of the biggest clients any company can have: Apple (AAPL +0.35%).

According to a Truth Social post by President Donald Trump, Apple has agreed to a deal to design and build chips in the U.S. with Intel. That's a major development, but does it make Intel stock a buy now?

Image source: Getty Images.

Intel has come a long way from its lows Back on Aug. 22, 2025, the U.S. government announced an $8.9 billion investment in Intel. That kick-started a major rally in the stock, and it has risen about 440% since then. That's a solid gain so far, but after a run like that in less than a year, investors may be worried that the stock is becoming overvalued.

Today's Change

(

-1.39

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-1.84

Current Price

$

130.44

And they're right to be concerned.

Intel trades for 123 times forward earnings and 87 times 2027 earnings projections.

Data by YCharts.

That's a lot of growth already priced into the stock, and it easily raises red flags for me. However, big deals like the one potentially coming with Apple are a huge part of that hype. Currently, nearly all of Apple's chip supply comes from Taiwan Semiconductor Manufacturing (TSM +0.19%). TSMC also supplies a vast majority of the chips used in AI products, and its production capacity is being stretched thin. With Apple looking to diversify or completely change its suppliers, it opens the door for Intel into a major business opportunity. If it pans out, it could easily grow to a point that justifies Intel's current valuation.

Intel's stock was priced at a premium in anticipation of a potential major landmark deal like this, but we'll have to see what this looks like in practice, and it may be a few years before Intel can start producing Apple's chips. At the very least, it's confirmation that the Intel revival is going as planned, though I'm hesitant to recommend the stock until we see a concrete purchase agreement and know how much of Apple's business Intel will be handling. Until then, I'm comfortable sitting on the sidelines.

Keithen Drury has positions in Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Apple, Intel, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.

© Photo by Astrid Stawiarz/Getty Images

Dr. Michael Burry of The Big Short fame might serve as a brilliant guide for an unprecedented AI hype-driven market environment. While the man has been known to be a bit early to some of his trades, including bearish bets against the iShares Semiconductor ETF (NASDAQ:SOXX), which has managed to move past its early-summer rough patch en route to new all-time highs, I do think that his heavy skepticism of the AI rally is worth diving deeper into.

Of course, that’s not to say that lightning will strike again, and according to schedule, especially since a lot of retail investors have similarly placed big bearish bets of their own against the semiconductors.

Whether we’re talking about the Direxion Daily Semiconductor Bear 3X Shares (NYSEARCA:SOXS) or some other bearish security betting against the industry or individual names (think those in the memory and storage scene), there is no mystery that the blistering-hot semiconductor industry has been ripe for profit-taking and even bearish bets given the incredible past-year parabolic rise and the high likelihood that it will end with a pretty harsh correction (maybe even a crash) at some point.

Catching cycles is tough, though, especially when valuations on some of the most overbought stocks on the market are… dare I say cheap? And then there’s the question as to whether semiconductors have graduated from cyclical plays to structural ones in this multi-year (or even multi-decade) AI revolution.

While the risks are too hefty to follow Dr. Burry’s bearish bets against the semis, I do find his long bets to be very tempting to follow. Here are three of the most intriguing of his recent round of personal buys:

Adobe Adobe (NASDAQ:ADBE | ADBE Price Prediction) stock looks to be one of the big victims of the SaaS-pocalypse. Indeed, generative AI could threaten the livelihoods of creative professionals, many of whom subscribe to the Adobe Creative Suite. But just because Adobe looks to be ill-positioned does not mean it’ll go down without a fight.

It’s not just oversold, it’s beyond oversold at this point, now down close to 42% year to date and around 72% from all-time highs. As AI gets integrated into Photoshop, Premiere, and across the suite, the big question is whether the firm can turn AI from an existential threat into a source of a moat. When you look at the numbers, there’s a bit of a disconnect between the reality of the fundamentals and what the stock’s saying.

Adobe won’t be an easy one to own, but at 11.1 times trailing price-to-earnings (P/E), shares are the cheapest they’ve ever been. As one of Burry’s more recent value bets, I’d certainly give the fast-falling name a second look. With backlash against AI slop, perhaps it’s names like Adobe that augment people with AI tools that could be in for an epic comeback.

Alibaba Alibaba (NASDAQ:BABA) is another misunderstood name that actually might provide investors with a dirt-cheap entry to the AI race by way of China.

Sure, China’s economy is in a rough spot, and geopolitical risks aren’t going anywhere. Over the past year, such concerns have been well-known, all while Alibaba has advanced its AI firepower.

Still down around 66% from its peak, with a 16.5 times trailing P/E, I think Burry is right to give the name the benefit of the doubt, especially as it moves at blazing speed with robotics and new AI-powered businesses that might be very monetizable.

PayPal The market has fallen deeply out of love with PayPal (NASDAQ:PYPL), with shares down close to 87%. That’s an epic crash, and the bottom might not be in yet following the recent wave of cuts and turnaround at the executive level. There are a lot of moving parts with the name, but at the end of the day, I think PayPal is on the road to becoming more efficient.

The new CEO faces a difficult challenge, but I do think the big cost-saving plan and expansion of Venmo (maybe a spin-off?), as well as PayPal Plus, could be key catalysts that might just spark a turnaround.

Payments is a fiercely competitive place to be, but at these valuations, it feels like PayPal’s new top boss will go down with the ship. I don’t think that’ll be the case, not while shares have such a low bar ahead of them with a 7.9 times trailing P/E multiple. Such a multiple would have been unheard of just five years ago.

I think the primary reason people are discussing Adobe (ADBE +1.00%) right now is the disruption potential from AI.

*Stock prices used were the afternoon prices of June 17, 2026. The video was published on June 19, 2026.

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe. The Motley Fool recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

In this episode of Motley Fool Hidden Gems Investing, Motley Fool contributors Travis Hoium, Lou Whiteman, and Jon Quast discuss:

SpaceX IPO.Who will sell SpaceX stock?What’s wrong at Adobe?Is Apple all right?Stocks on our radar.To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. When you're ready to invest, check out this top 10 list of stocks to buy.

A full transcript is below.

This podcast was recorded on June 12, 2026.

Travis Hoium: It's SpaceX IPO Day, and Motley Fool Hidden Gems Investing starts now. Welcome to Motley Fool Gems Investing. I'm Travis Hoium. I'm joined today by Lou Whiteman and Jon Quast, and we have to start with the news of the day. That is the SpaceX IPO. This has been coming for a while. It's been a huge topic. Retail investors, who are the people that we talk to, are going to be a huge piece of this. I want to go through an overview and get all the way down to when are some of these big owners going to sell. But Lou, let's start here for investors who are maybe new to this IPO process who've never bought an IPO or a stock that has started their initial trading, like SpaceX is going to do today. What is an IPO and why is it important?

Lou Whiteman: An IPO, initial public offering, is the process through which a private company becomes a publicly traded company. All companies have shares, private or public. But before the IPO, SpaceX shares were held by investors who had invested early on, venture capitalists, insiders, not easily traded on the open market. What SpaceX is doing is they're selling a small sliver of themselves, some percentage of their shares, in this case, I think, under 10%. Over time, all of the shares will become tradable. This allows both retail investors like us non-venture capitalists to get in. It also allows for big holders to get out. It's just the process of becoming more easily tradable, or as we call it, public.

Travis Hoium: We'll get to that selling piece in just a moment. But Jon, why is this IPO in particular such a big deal?

Jon Quast: Because it's the biggest IPO of all time, and it's not even close. 2019, Saudi Aramco went public, and its IPO, it raised about 25 billion. SpaceX is looking to raise 75 billion, so three times the size of the last biggest IPO. This is absolutely enormous, and when you think about the timing here, I know we're going to get into this more, but when you look at Anthropic, OpenAI, also looking to go public in the near future, you look at even a company, we shouldn't forget about SK Hynix from South Korea, looking to go public here in the U.S., it's already publicly traded in Korea, but publicly traded here in the U.S. at maybe $1 trillion valuation as well. We have a cluster of four potentially trillion-dollar companies going public at the same time, maybe 200, 250 billion raised in IPO proceeds all at once. I don't know. We haven't seen that before.

Travis Hoium: Lou, this does seem like a unique moment and we had a little bit of this during the pandemic. There was a lot of those SPACs, SPAC-mania. That was very different companies that it seems like we have today. SpaceX is a very real company doing very real things. We've done shows if you want some deep dives, we have some of those in the back catalog for Motley Fool Hidden Gems Investing, and you're going to be doing some content on The Motley Fool today and over the next few weeks or so about this. But this is a moment where you're going to see potentially $3 trillion companies coming to public markets in 2026. The scale of that is just something we've never seen.

Lou Whiteman: This is not what the IPO market was made for, for honest. Some of these things, all this talk about, well, they're bending these rules, they're changing these rules. I'm sympathetic to that, but also the rules never envisioned companies this size. It's important to say, yes, a lot of money is coming on. There's a lot of questions, and I don't think any of us really know the answer to what this will do for the market because it should pull money away from elsewhere. By the St. Louis Fed, there is $8 trillion on the sidelines, as they call it. That's money in money markets. Not all of that is looking to get in, but there is a buffer there. Trying to do the back of the envelope, if all three go public, what we're thinking, maybe 5-6% of total market capitalization of the U.S. markets. That's a huge number. But it's not a relatively massive number. I think over time, the market can handle this, but I do think that, yeah, we could be in, even if you have no desire to get in on this offering and just want to watch it from the sidelines between your index funds and just what it does, the pulls on other stocks, almost everybody invested in U.S. markets is going to feel this somehow, at least in the short term.

Travis Hoium: Jon, let's be honest about what this is for a lot of investors. This is a liquidity event. This is an exit for them. I follow a lot of venture capitalists on Twitter and places like that. They're looking at this as a huge day because this is when they get their money out. Talk to me about exactly what that means and what the IPO means. If you're Elon Musk or if you're investors in SpaceX, you don't typically want to do this in a down market, you want to do it in a market like we have today where, hey, what's $1 trillion here or there when you're talking about valuation?

Jon Quast: Absolutely. I think that that is the clearest of all signals for why there are potentially four trillion-dollar companies coming public at the same time? It's because the getting is good and you've got to get when the getting is good. You've heard of sell high and buy low. Well, these companies and these venture capitalists who own shares of these privately held companies, they want to sell high, and this is an opportunity. The market is quite hot right now. I believe that we could even say it's overvalued right now. I think some of our listeners just heard me say the market is going to crash. I didn't say that. I said the market is overvalued right now. This is a good time to be a seller if you want to raise some money. And that goes for the companies themselves, but as you point out, the venture capitalists. I love the Warren Buffett quote, "The only reason to put money into a company is so you can have more money later." These venture capitalists, they want to have a way to have liquidity, get their returns on investment that they've had so far, so they need this.

Lou Whiteman: Just one thing on that liquidity in terms of how it affects the market because that is my focus right now. What we know is is that venture capitalists over time will be free to do something with their shares. We don't know what they're going to do. A lot of these institutional owners, what they'll do is distribute, not sell. They will give it back to their limited partners in the form of shares and let the limited partners decide what to do with it.

Travis Hoium: Who are those limited partners? Let’s get to that a little bit, because this is not just rich people; this is actually a lot of people who are listening to the show, probably have some exposure through something like a pension fund.

Lou Whiteman: Pension funds, endowments, definitely rich people, too, a lot of people. But yeah, no. Look, there is no one-size-fits-all answer. There will be liquidations, there will be partial liquidations, but there will be some that say, I believe in SpaceX, I want to own these shares. I know you're here for answers, but there is just no way of knowing. There will definitely be an impact here. There will definitely be people seeking liquidity. That also creates new opportunities because if there's a lot of cash created, then that's money that could be spent to buy other companies. If you're selling SpaceX, there's going to be a lot of near-term movement. How it all nets out? I don't think any of us really know. I think the market can digest it over time, but look, indigestion happens, even if it's short term, and we could get indigestion here.

Travis Hoium: Now, this is an IPO that I don't plan on buying, so let’s just put that out of the way. Do you guys fall in the same boat?

Lou Whiteman: Yeah.

Jon Quast: Yes.

Travis Hoium: But I do have exposure to this, and this is something that I think we should touch on is a company like Alphabet is a big holder of SpaceX, invested $10 billion or so over a decade ago at this point. They have about $100 billion stake, Lou. That's money that if they sell that $100 billion stake, they could just turn around and pour that into artificial intelligence. We talked this week about they are raising $80 billion in equity because they don't want to take on a whole bunch of debt to do this AI build-out. What do you think a publicly traded company like Alphabet is going to do with their shares of SpaceX?

Lou Whiteman: We'll get to that in a second. The first thing, though, I think we should say is that as retail investors, we should not take this as a signal. We always talk about we don't give individual financial advice because everyone's situation is different. Alphabet's situation is different than yours. You're going to hear it like, well, if Alphabet thinks it's worth holding, then it's worth holding for me, too, and read it that way. That is the wrong answer here.

But it's a great question because it's a lot of money. There are a lot of ways that they could hedge their economic exposure or even monetize that stake without selling. Even if we see it stay on the books, that doesn't mean they aren't finding ways to put it to work. I would assume that over time, it's not core, but I would also assume they're not going to be in a hurry. They still own a huge portion of ASTS for the same reason. They could monetize that at a huge gain. My guess would be that they will hold tight with it for now, at least on the surface, from what we can see. Again, there are ways to monetize it or put it to work elsewhere. I guess they'd be more inclined to do some of that than they would just to sell this in the near term.

Travis Hoium: Jon, historically, what do we know about what a company like Alphabet will do with their shares?

Jon Quast: It might be surprising to our listeners that Alphabet owns shares of a company, but it's actually not unusual at all with its Google Ventures in the past. I think it's just called GV now, but it's invested pre-IPO in companies such as Uber, Lyft, and Robinhood. When those companies went public, it didn't sell right away. Now, it did afterwards sell, but Robinhood, it waited a couple of years. Uber and Lyft, it waited longer than that. It did eventually sell, but it patiently held those stakes even as they increased in value early on. I think that that would point to probably Alphabet, if it is going to be a seller, probably wouldn't be a very quick seller here, would probably hold on to the stake just using history as a guide. That said, back when it held those stakes in the other companies, it wasn't looking at potential negative free cash flow like it is right now. It is different circumstances this time than in the past, so take it with a grain of salt, but the historical pattern is hold.

Travis Hoium: The other thing that I think is interesting, especially with a lot of these tech companies, when one of these big tech companies invests in a company that could potentially disrupt them, or could play a big role in the market, and they sell, that's usually the wrong time to sell. Microsoft had a huge stake in Meta, for example, or Facebook back then. Sometimes, if they just hold onto these stakes, that's the right thing to do. SpaceX — obviously different for a million different reasons, partly because it's almost a $2 trillion valuation as it goes public.

When we come back, we're going to get to another publicly traded company that is not going in the right direction. That's Adobe. You're listening to Motley Fool Hidden Gems Investing.

Welcome back to Motley Fool Hidden Gems Investing. Shares of Adobe are down over 8% in trading on Friday. That's after falling yesterday. Even before they were announced earnings that came out after the market closed yesterday. Lou, there's a lot going on with Adobe. This is seen as one of the companies that could potentially be an AI loser, and yet, their numbers look fine, so what in the world is going on?

Lou Whiteman: Down 8.5% this morning after what looks like a great earnings report to me. This one frustrates me because I am on the camp that thinks they are not going to be wiped out by the AI software invasion, so I own this one, so not enjoying this. But look, the numbers were really solid. They were great. They've been on the top and bottom line; they raised revenue and earnings guides for the year. They're seeing good traction with their AI products. I think AI-related recurring revenue was tripled. But there is C-suite turmoil, and this is not a good time for that. The CEO who's been with the company since 2007, not retiring until a replacement is found. I didn't find that particularly scandalous. It's not great timing, but look, this is retirement. He's earned a gold watch.

The latest news is CFO Dan Dern will report. To me, it will leave, sorry, not report. To me, this is more of a sign that Dern was not going to get the job. There are internal candidates here. There is a process. If I'm Dern and I am not on the short list to get the CEO job, maybe I move on. Again, I don't think this is red flags, but it adds to the turmoil. There are some things that we can get into it. I don't think the quarter was perfect, but I think this is just, I don't know. It's hard to just ignore all the noise and look at the numbers because the numbers could change. The SaaS apocalypse could be right around the corner, but I just refuse to think these businesses are going to be destroyed until I actually see it in the numbers. I think, absent just the natural CEO life cycle playing out, I got to think the market would be happier today.

Travis Hoium Jon, the odd thing looking at this is as I looked through the numbers, I didn't see any major red flags. I need to dive a little bit deeper. But you do look at that C-suite turnover, and it has you scratching your head a little bit, the CEO leaving, like Lou said, been there forever. But the CFO, then you look at his history and where he's going. Look, Marvell, going from a company that’s going, a stock that's going down to a stock that's going up in a hot segment of the market, probably got a great offer. I don't know. I go, maybe this is just about getting a bigger paycheck elsewhere.

Jon Quast: It is possible that Adobe was passing Dern over for the CEO role. He feels slighted and is going outside the company now. That's possible, but let's not kid ourselves here. This is a promotion in many ways. It's a better career opportunity for Dern, in my view, because as you point out, Marvell much bigger and growing faster. It just seems a way brighter outlook for the company as opposed to Adobe right now. If I'm Dern, I think I take this as well, regardless of what's going on at Adobe because everything looks so great at Marvell. You look at this, you asked, Travis, before the show, at what point is Adobe worth buying or something like that? Because it's trading at eight times forward earnings right now. The numbers did look good, and I'll concede that point. At what point do we start to believe this? Here's the question for me: I think that the struggle to believe Adobe right now is what is the plan, and who is bringing the plan? Because the CEO and the CFO are now both out, so they're not bringing the plan. The plan that they are presenting, there might be some question marks there.

Travis Hoium: Lou, we talk a lot about management. It's sometimes really hard to judge management. This is where the board of directors earns their paycheck because the job of the board of directors is to set the vision for the company and then hire the people that are at the top. When you have to hire a new CEO, especially at this moment when there could potentially be disruption, you talked about the SaaS apocalypse. This almost seems like a time where you're either going to go in the wrong direct. It's like a binary outcome. If you have a company trading for eight times forward earning earnings, you're either going to go in the wrong direction, and we're going to look back on this and going, look, the market saw this coming a mile away, or you're going to do a turnaround, and it's, maybe not Steve Jobs coming back to Apple, but somebody comes in with a new plan and says, hey, I have the ability now that the stock is down, now that we're unloved by the market to come in and shake things up and say, this is where we need to go.

Lou Whiteman: If I could ask anything of Shantanu Narayen, the CEO, why now? You've had a good run, can't you stand a little longer? Because, to Jon's point, you're right, this is a terrible time to have to be saying we don't have long-term certainty. They don't have a credible plan right now because whatever they come up with, could be around to implement it. They need a new CEO to just say exactly that. I do think that as you say, this is a great opportunity for someone to come in and do it. I think messaging can be improved from here. Quarter wasn't all great. They are delaying pricing initiatives, they lower their outlook for recurring revenue. They are trading growth for active users right now, just trying. I think the idea is, the thought is, let's make sure the foundation is great for the next person. But again, it is just a crummy time to be waiting. Wait and see, we're going to get someone in here who will know what to do is not a message the market wants to hear right now. Maybe it's just stay on another two years or something. I don't know.

Travis Hoium: Jon, is this just one of those instances where it seems like we fall into this with something like PayPal, too, where it does look cheap, but that doesn't mean the stock's going up for a while.

Jon Quast: That's absolutely right. Why do stocks go up over the long term? They go up when they are able to grow their businesses and become a better profit machine. There are some legitimate question marks there. It wasn't screaming red flags, it wasn't a terrible quarter, but there are questions, and so to Lou’s point, chasing user acquisition more, the CEO's saying, we're going to chase lifetime value with more premium offerings. Chasing those free-tier products, but you're going to have to spend to advertise to get those users there. Little data point here, first half of fiscal 2026, sales and marketing up 15%, revenue only up 12%. That's just a minor little thing that we need to be watching here, especially with questions about the long-term vision.

Travis Hoium: Definitely some questions, but the valuation is very compelling, so I'm going to be digging more into. When we come back, I'm going to get some thoughts on some valuations and which stocks Jon and Lou like. You're listening to Motley Fool Hidden Gems Investing.

Welcome back to Motley Fool Hidden Gems Investing. In this segment, we like to have a little bit of fun with stocks that we follow. I want to play either or neither, and I'm going to give Jon and Lou two stocks. I'm going to say, which one do you like better? But I do give you the option to say, I don't like either of these. We've talked about SpaceX, but let's talk about the other Elon Musk company. Crazy that somebody's going to be the CEO of two trillion-dollar companies, I guess and potentially be a trillionaire himself. Lou, Tesla or SpaceX stock, or neither? Which one do you like here?

Lou Whiteman: I want to be that guy here and say, in six months, they're going to be one company, so you don't have to choose. But no, I do think they'll merge. I don't think it's that soon. I would probably go with SpaceX just because I do think it's the newer, fresher story without dents. My honest answer is neither, though. Valuation, I can't really get my head around either.

Travis Hoium: Jon?

Jon Quast: I think I would take Tesla, and mostly because I see multiple ways for it to win. You just have to have a very long time horizon when it comes to Tesla because one thing is for sure, whatever it's saying it's going to do, it will not be on time. Just take that with a grain of salt. But battery technology, I think that is an increasing potential avenue for — I just think it's a huge area of growth in our world, battery technology. You do look at the robotics that it's working on. Yes, not on schedule, but very interesting work that's happening. You do look at the robotaxi efforts. Definitely, the rollout was supposed to be a billion times bigger by now, but I think it is going to happen, and I do think that that is accretive to the business. I see many ways for Tesla to win.  SpaceX, on the other hand, I'm uncertain with how much capital expenditures it's plunging into AI.

Travis Hoium: You’re not worried about Tesla's increase? I think the 25 billion that they're putting to AI compute. That one doesn't worry you as much?

Jon Quast: I think it's even higher with SpaceX, and then on top of that, you have rockets that you need to build that are also expensive. I see better economics for Tesla.

Travis Hoium: Let's get to the other company that we talked about. Adobe. Another one that I'm looking at this falls into this. Is this a value or a value trap Intuit. Jon, you're up first. Do you like either of those or neither?

Jon Quast: My honest answer would be neither. I wouldn't be investing in either of these companies right now on a personal level. However, if you did make me choose, I think I would choose Adobe over Intuit. The reason why is that Intuit does more of its business — it does have a large enterprise customer base, but the consumer base is much larger of a percentage of the business, and that worries me. I think that consumers are curious about other tools right now. Adobe, I think there is a little bit more stickiness with its enterprise revenue base. I do think that that is a little bit more sticky. I think that enterprises in particular are looking for a company such as Adobe to come in and help me do AI, not how do we replace Adobe with AI. I think that Adobe has a little bit more staying power.

Travis Hoium: Lou, I'm going to give you a couple of numbers here. Forward Price Earnings multiple for Adobe is eight. We talked about that earlier, Intuit, it's 16. But is Jon right that the potential for disruption of just, I don't know, sticking your tax information in ChatGPT? Is that the disruption? I've never thought of paying $100 or $200 to TurboTax to my taxes for me, essentially, is all that big a deal? That's a pretty valuable service.

Lou Whiteman: I don't think the consumer tax side of it is the part that we're really worried about here. There's a lot of just back-end small business number flows that maybe I think that's a bigger risk. I do think that's application where it's just zero creativity, zero judgment, shall we say, is more ripe for disruption. I've already told you my bias. I own one of these. It's Adobe. Part of it is I just don't like Intuit. I think Intuit is done, they've played games with the tax code I know that's particularly trust. That's just a personal bias here, but I do think of the two, if either is disrupted, it's going to be the one that is basically just a spreadsheet jockey and not a human judgment type of business.

Travis Hoium: I buy that argument, guys. You're talking me out of Intuit. Let's get to the home improvement side. Home Depot shares trade for 23 times trailing earnings, not growing all that much, just 3% a year over the past three years. Lowe's trading for 19 times earnings, actually down in terms of revenue over the past three years. Lou, do you like either of these or neither?

Lou Whiteman: Home Depot has always been the stock to own. It's always been the better of the two really good companies, not for growth, but because they generate cash, and they use that cash to buy back shares. It is a total return story. They, and to a lesser extent, Lowe's have changed focus of late. They're spending a lot of money on acquisitions, trying to build other sides of the business. That is going to slow, at least in the near-term returns to shareholders, because they have a lot of debt to pay off. I actually think if I had to buy one of these today, I would buy Lowe's. I think it's the first time in my investing career I felt that way. I just think they are operating a little better, a little more focused, and you do get a little bit of a better deal.

The real striking thing to me about this is that everybody knows these are great businesses for that reason. They have not fallen as much as homebuilders in some of these other areas with interest rates up and with the homebuilder I don't know. We're even start on the home issues. I think, though, you're not getting as good of a sale. Maybe I'm less inclined to jump in right now, but these are quality businesses.

Travis Hoium: Jon?

Jon Quast: There have been times in the past where I felt like Lowe's was clearly the better value and clearly had opportunities to improve its business.

Travis Hoium: I totally agree. Yes.

Jon Quast: To have that relative outperformance. I wouldn't say that right now. I feel like they're both in the same place right now, same outlook, more or less. In that scenario, and with a higher dividend yield, I would take the historically stronger business and that's Home Depot. Nearly a 3% dividend yield. That's pretty good compared to Lowe's just two. But I don’t think you’ll go wrong with either company here if it’s just a set-and-forget-it investment.

Travis Hoium: It's one of those businesses that I think is a really good learning lesson if you just look back through their history because Home Depot has been the outperformer. I don't know what the magic sauce is there, because I go to Lowe's stores. I actually like the stores better. I don't know if the lighting is a little bit brighter or something. But there's never anybody there. Maybe that's a regional thing where we are here, but you see it in the numbers, too. They just don't do the same volume that Home Depot does. Home Depot's just always busy. There's people there buying stuff, and that's what the business is all about.

Let's go back to big tech. Microsoft trading for 23 times trailing earnings, about 20 times forward earnings estimates. Alphabet, trading for 27 times trailing earnings. A year ago, this was completely backwards, but Alphabet has been on an absolute tear and 27 times forward estimates. Jon, do you like either of these stocks or neither?

Jon Quast: Yeah, I love Alphabet. I think that this is just a great business all around. I wish I would have bought it a year ago, but I don't think it's a bad investment today.

Travis Hoium: Are you worried about the money that they're putting into AI and potentially 2% dilution with their $80 billion raise? Uncertain if there's going to be ROI on that. I think that's what the market's starting to think about.

Jon Quast: Fair point, but of all the companies out there doing it, I think that Alphabet is the one that is going to get the ROI. If other companies aren't going to, Alphabet will, and that is because of how Alphabet can monetize it throughout its entire ecosystem. I think that's a really important distinguisher.

Lou Whiteman: They just have so many ways to win here. That's the important thing. Look, just to play the game, I will say Microsoft because it is a slightly better deal right now, but the truth is that investors aren't playing a game. You can buy both. In this case, you're fine. These are two excellent companies. Even among the Mag 7, these are the two companies that just have the most ways to win, the most irons and different fires, the most different customer bases to deal with. These are the cream of the crop, and you really shouldn't choose one or the other.

Travis Hoium: Let's end on this. The retail battle that I think is fascinating for investors, Walmart currently trading for over 40 times earnings. You can get Microsoft for about half of the price to earnings multiple as Walmart just wild where we are with the market. Today, against Target, now, even after a really nice run, still only trading for 18 times trailing earnings, 16 times forward earnings. Lou, if you've got to pick one of those, which one do you like, or is it neither?

Lou Whiteman: I own Walmart here, so I guess I can't say neither. I will say, it really depends on time frame right now. If you're talking short term, I think Target will outperform Walmart over the next six, 12, maybe 18 months. A lot of that is regression to the mean in both ways. Target was really beaten down, and they are actually showing signs that they have a pulse, and they're not going the way of JCPenney's. That's good. That is causing a value re-rate there. Walmart, on the other hand, has been on an incredible run, and not a sustainable run the way they're going. The stock is coming down to Earth; I think that's probably going to continue. Longer term, I love the way Walmart is positioned. I still don't know what target wants to be when they grow up. I don't know what urgent need they fill that you can't do elsewhere, which is a tough place to be in retail. I think they have to answer that question for me. Long term, I'm sticking with Walmart, but near term, I would expect Target will outperform.

Travis Hoium: Jon?

Jon Quast: You look at both of these businesses. I don't think the growth outlook is anything to write home about for either company right now. That is important when it comes to investing. How much can this business grow? That said, when you don't have the growth, you do look at, what is the margin opportunity here, and hats off to Walmart. It's doing really well on the profit margin front right now, and that is part of the reason why investors have been so excited about it. Does that keep getting better? Man, it's already pretty good.

Target, on the other hand, has opportunities to turn around and to Lou’s point, they show that they have a pulse. They are starting to show that maybe a little bit of this opportunity that we have to do our business better is starting to pay off, but that still has a long way to go if it is indeed the early stages of a turnaround. I would take Target here of the two.

Travis Hoium: Interesting thoughts on companies across the market. You can see that the valuations are just wildly different, depending on where you're looking at stocks today. We'll see how this plays out long term. When we come back, I want Lou and Jon's thoughts on the latest from Apple. You're listening to Motley Fool Hidden Gems Investing.

As always, people on the program may have interest in the stocks they talk about, and The Motley Fool may have formal recommendations for or against. Don't buy or sell stocks based solely on what you hear. All personal finance content follows The Motley Fool's editorial standards and is not approved by advertisers. Advertisements are sponsored content and provided for informational purposes only. To see our full advertising disclosure, please check out our show notes.

Guys, I wanted to touch on WWDC. This used to be one of those huge events from Apple, they had a couple events every year that in the late aughts, early 2010, these were some of the biggest moves for the market because this is when new products came out, when new software came out. But WWDC was, I would say, a little bit of a dud this year. Just not a lot happening. There's a lot of under-the-surface things that are going on. Siri is apparently what they promised a couple of years ago, and they talked a lot about parental controls. If you're a parent, maybe this is going to be really helpful. I'm excited about some of those features. But Lou, when you look at something like WWDC, is Apple just moving out of the spotlight? They're not spending a bunch of money on AI. There's not really a huge AI story, but maybe from an investor's standpoint, that means they're not burning a bunch of cash, and maybe that's OK.

Lou Whiteman: Yes, I think they're fine on AI. We've talked about this, but using someone else's stuff and getting it out over your massive customer base, that's the way to go. That's a lot better than reinventing the wheel. But look, Apple has replaced Microsoft as the most boring big tech company. Whoever thought this company could be so boring? I mean that as a compliment. The good news is this is a well-protected franchise that makes money and should be able to do that well into the foreseeable future. This is a massive profitable business. The bad news is there's no sign that the next big thing will ever arrive. Maybe that'll change with new management. They got a product guy coming in, but it is just the expectations game is now slowly turning in Apple's favor. We are just all accepting like, this is what it is, and fortunately, what it is is a fantastic generator of revenue and profits.

Jon Quast: You point out the parental controls there, Travis. That is not innovation. That's just a business doing business, and that's what WWDC was.

Travis Hoium: A lot of the things that they introduced, I thought that we had the capability of doing as parents, to be honest.

Jon Quast: That's exactly right. There is no big thing here, and I think it's OK. Actually, as I look at where we are now, I don't think this was true of every company, but the way that Apple played this entire AI Supercycle, I think it played it perfectly because, to Lou’s point, it's having other people do all the expensive stuff in creating the AI models and it's like, I'll pay for that and use that. Now, I'll integrate that into what I offer. But I'll just focus in on the hardware, and that's actually been where the money has been right now. I think that's where the money could continue to be for Apple. There's a trend that's going to emerge. I'm calling it now. It's called local AI. This is basically, I'm going to start moving some of my AI compute to where I am. Actually, Apple devices are incredibly proficient at handling that because of how they're made. They’re more energy efficient because of the ARM-based architecture. The high bandwidth memory. They can get a lot done. I think that Apple's going to lean into the hardware angle, and that could be where the more money is made.

Travis Hoium: Yes, to that point, they did not introduce a new Mac Studio. That's the product. I'm actually waiting to get the next-generation Mac Studio because their chips were a little bit goofy in the last generation. But that has been delayed theoretically into the fall because of the massive demand that they have for chips. This AI shortage for chips is now starting to hit Apple in that way. It is interesting where they sit. I think you're right, Jon. They have a very strong position with their products. The downside is they're now behind companies like Nvidia when you go to TSMC. Who gets their chips first? Apple's no longer running the show over there, that's starting to impact products like that, but it definitely seems like if we do more on device compute, they're sitting in a pretty good spot.

We like to end the show with stocks on our radar, and we bring in Dan Boyd from behind the glass for his thoughts. Lou, you're up first. What's on your radar?

Lou Whiteman: Dan, this week, I am going to Casey's General Stores, ticker C-A-S-Y. This is one of the biggest gas station chains in the Midwest, but also, so much more, Dan. Would it surprise you to hear that Casey's is also the fifth-largest pizza chain in the U.S.? Unlike a lot of other fast-casual restaurants that have taken on a chin of late, Casey's is thriving. The company beat on the top and bottom line thanks to strong gas sales and yes, pizza. Inside same-store sales, so excluding gas, were up 5.5%. Margins increased to 120 basis points. They have all pricing power with their pizza, either. Casey's is forecasting 8-10% full-year EBITDA growth next year and is likely to open more than 100 new locations. It also just raised its dividend by 14%. A lot to like here, not just a pizza.

Travis Hoium: Dan, what do you think about gas and pizza?

Dan Boyd: What are we doing here, gang? Pizza from the gas station? Come on. We can do better, Midwest. We can do better, Southern United States. Come on.

Lou Whiteman: Let's do a road trip. Let's go eat the pizza. I'm dying to try it.

Travis Hoium: I think we should do that. We can do a show from the road. The other thing, Jon made this point before the show, but in a lot of places, Casey's is the local place to grab a pizza, if you want. If you're driving through, live in Minnesota. If you're driving through a small town in Minnesota, Casey's is the only place to stop. Jon, what's on your list this week?

Jon Quast: This week I'm highlighting a company called FormFactor that is ticker symbol F-O-R-M, about a $10 billion company. Let me set this up. Nearly every AI chip in the world passes through a probe card before it ships out. Basically, a chip can have problems, and you don't want to package up broken ones. The probe cards basically check the chips for electrical problems. Most people have never heard of FormFactor, but it's actually one of the world's leading companies in making these probe cards doing over 800 million in trailing 12 month revenue. Here's what's really interesting to me. Its largest customer is South Korean memory giant SK Hynix nearly 30% of revenue. Now, last week Nvidia and SK Hynix signed a multi-year partnership to create more memory products. More memory means more probe cards. That should also mean more business for FormFactor. I should also mention that Nvidia itself is a 10% customer for this company as well. There are risks, trades at over 25 times 2030 earnings targets, according to management, so it's not cheap. But this isn't a bet on which model will win. This is a bet on that there will be more chips and that they will need to get more complex, and so that's more business for FormFactor.

Travis Hoium: Dan, what do you think of FormFactor?

Dan Boyd: Brother, I barely understood a single word he said in any of that. But you know what I do understand, even though I was poo-pooing it just a moment ago, is gas stations and delicious pizza. I think I'm going to go with Casey's this time around.

Lou Whiteman: I'm with him with pizza.

Travis Hoium: Props to Jon for bringing a new stock to my attention, so I appreciate that. But yes, I appreciate Casey's business maybe a little bit more. That's all the time we have for today. Thanks to Lou and Jon and Dan behind the glass. I'm Travis Hoium. We'll see you here tomorrow.

CANNES, France--(BUSINESS WIRE)--Today, at Cannes Lions, Adobe (Nasdaq:ADBE), the global technology leader that unleashes creativity, productivity and customer experiences through innovative tools and platforms, announced new innovations with the world’s leading agency networks, technology partners and systems integrators to create, activate and measure personalized customer experiences at scale.

Adobe is the agentic infrastructure layer across models, platforms, agents and ecosystem, bringing together creativity, marketing and AI in the agentic era. With Adobe CX Enterprise and CX Enterprise Coworker, Adobe is helping brands drive performance and protect brand integrity across content supply chain, customer engagement and brand visibility.

These new solutions and integrations further solidify Adobe as a trusted partner to technology companies and agencies and the platform-of-choice for effective multi-agent collaboration that drives better customer experiences and business outcomes.

“Agentic AI is no longer something brands experiment with, but what they run on,” said Rachel Thornton, Chief Marketing Officer, Customer Experience Orchestration, Adobe. "Through our partnerships with the world's leading agencies and technology companies, Adobe is building for that reality, connecting paid and owned channels, embedding intelligence across platforms and helping brands define the next era of customer experience.”

Partnering to transform customer experiences at scale

Anchored by new co-developed solutions, a growing coalition of industry leaders including Accenture, Omnicom, Stagwell’s Code and Theory and WPP are deploying Adobe's content, data and AI platforms to transform how global brands create, activate and measure customer experiences.

WPP is launching a connected intelligence layer that unifies paid media spend with owned customer experience data, creating a continuously improving loop for customer interactions and marketing investment. Stagwell agency Code and Theory is launching the Content Operating System for Sports, a new solution that streamlines content creation, management and distribution for sports organizations, directly connecting fan engagement data to content workflows powered by Adobe CX Enterprise. Omnicom is unveiling implementation architectures across automotive, pharmaceuticals, retail, and financial services of its AI Agentic Operating Model, a new enterprise solution powered by Adobe technology that transforms how enterprises plan, create, activate, and optimize campaigns and customer experiences at scale. Adobe and Accenture Song have co-developed a new agentic experience orchestration framework, powered by Adobe technology, that defines how brands can deliver AI-powered customer experiences at scale and drive measurable growth. Delivering intelligence to AI environments

Adobe connects CX Enterprise with partners across agents, skills and Model Context Protocol (MCP) servers, so teams can move quickly and with precision without having to worry about maintaining brand integrity and governance.

Adobe recently announced CX Enterprise Coworker and Adobe Marketing Agent availability across leading AI platforms, including Amazon Web Services (AWS), Anthropic, Google Cloud, Microsoft, OpenAI and more.

Now Adobe CX skills and MCP servers are also generally available in Anthropic’s Claude Enterprise and Microsoft 365 Copilot Cowork, giving enterprise customers direct access to Adobe’s customer experience capabilities within the AI environments they already rely on.

Adobe at Cannes Lions

At Cannes Lions 2026, Adobe is showcasing how creativity, marketing and AI are converging in the agentic era. From creators and marketers to the world's largest brands and enterprises, Adobe is helping people imagine, create, orchestrate and deliver experiences that move from ideas to impact.

As the first-ever Headline Partner of LIONS Creators, Adobe is bringing together industry leaders, creators and customers to explore the future of creative expression, brand building and customer experience. Across Creator Beach, the Majestic, the Parvis and stages across the Festival, the company is demonstrating how innovations in Adobe Creative Cloud and Adobe CX Enterprise are enabling organizations to create standout content, engage customers more effectively and scale creativity with greater speed and precision.

At a moment when creativity, marketing and AI are converging into one system, only Adobe brings them together — combining the world's leading creative tools with enterprise marketing and AI in a single, unified platform — empowering creators, brands and enterprises to move faster, deliver more personalized experiences and drive business growth and impact. Learn more at https://canneslions.adobe.com/2026/home.

About Adobe

Adobe empowers everyone to create through industry-leading platforms and tools that unleash creativity, productivity and personalized customer experiences. For more information, visit www.adobe.com.

© 2026 Adobe. All rights reserved. Adobe and the Adobe logo are either registered trademarks or trademarks of Adobe in the United States and/or other countries. All other trademarks are the property of their respective owners.

© Photo by Astrid Stawiarz/Getty Images

Michael Burry may have made one of the greatest trades of all time when he bet against the housing market in the wake of the Great Financial Crisis. Still, Dr. Burry isn’t someone to follow into or out of stocks, even if he has been more willing to share his moves and reasons for making them with the general public. Undoubtedly, Dr. Burry’s glorious bets don’t just stop at betting against housing before it melted down back in 2008.

He’s got a pretty solid track record of bets in the many years since. But, more recently, the man has been maybe a tad too aggressive with his bearish bets against parts of the AI trade. And it’s unclear just how early the man is this time around.

Semiconductors are probably more than just overvalued at this point, but it’s continued to prove difficult to bet against them, even in the face of increased volatility. As we found out in the past month, volatility works both ways. One horrific day may or may not be the start of a trend.

It takes guts to bet against semis, including Nvidia As dip-buyers swooped in, bidding semi stocks to new heights, questions linger as to when AI bubbles will start to burst. Regarding specifics, Dr. Burry seems to be playing the medium-term game, with his bearish put options against the iShares Semiconductor ETF (NASDAQ:SOXX) going into January of next year.

By going long, at least when it comes to options, Dr. Burry could still prove right in a massive way. And I do think he will be in the money, given the odds of a steep correction in the semis from here.

Of course, we’d have to be looking at a collapse in excess of 50%. And while there’s a possibility that Dr. Burry could run for cover before the options themselves go bust, I do think that the risks of betting against the semis might be underestimated. 

With Dr. Burry also betting big on a number of beaten-down SaaS names in a class value investors’ move, more recently picking up more shares of Adobe (NASDAQ:ADBE | ADBE Price Prediction) at a multiple that’s starting to get ridiculous (shares go for 8.0 times forward price-to-earnings), it feels tempting to get in the contrarian camp. Whether that’s betting against semis or going bargain hunting in the SaaS scene, Dr. Burry’s bold style will not be for everyone.

Nvidia: A premium AI winner at a not-all-too-premium price Personally, I think a name like Nvidia (NASDAQ:NVDA), which Dr. Burry is still betting against, might be better to buy on strength than Adobe on weakness. Of course, there’s fear that excessive AI-driven GPU demand could lead to a “bullwhip effect,” which would undoubtedly drag Nvidia down and make its shares look relatively expensive at today’s seemingly reasonable 32.2 times trailing price-to-earnings (P/E) multiple.

In any case, it’s easier to go with the flow than against the grain, especially as Vera Rubin looks to fly off shelves, all while the PC market looks to take interest in Nvidia’s RTX Spark. Until AI cools, I just don’t see Vera Rubin not selling out or sitting on shelves, running the risk of markdowns.

Until then, I think Nvidia is a far steadier, and perhaps more rewarding bet as it remains a prominent “picks and shovels” winner while empowering AI to cause some to question the business model of SaaS. As far as SaaS goes, Adobe has to be one of my favorites, but still, it could be a long, difficult road ahead for the stock as it continues to sink because it’s perceived to be on the wrong side of a massive technological trend.

Key Takeaways Adobe is expanding Creative Agent across Firefly, Photoshop, Premiere Pro and Illustrator.Adobe is integrating AI into its apps as a productivity layer across the creative process.AI tools may boost engagement, retention and growth in digital media and content creation. Adobe’s (ADBE - Free Report) recent expansion of its AI-powered Creative Agent across Firefly and core Creative Cloud applications—including Photoshop, Premiere Pro, Illustrator and other flagship products—marks another important step in strengthening its long-term growth strategy.

Adobe already holds a dominant position in the professional creative software market through industry-leading solutions such as Photoshop, Illustrator, Premiere Pro and After Effects. By embedding Creative Agent capabilities directly into these applications, the company is evolving AI from a standalone tool into a seamless productivity layer integrated throughout the creative process.

Artificial intelligence is increasingly becoming a major driver of Adobe’s future growth. The company continues to enhance its platform with generative AI offerings such as Acrobat AI Assistant, Firefly App and Services and GenStudio for Performance Marketing. Adobe’s established product ecosystem benefits from high switching costs and strong customer loyalty, providing a durable competitive advantage that supports pricing power and steady subscription revenue growth.

The company also enjoys the benefits of recurring revenues, robust free cash flow generation and strong operating margins. The expansion of AI capabilities across its ecosystem has the potential to boost customer engagement and retention while creating new growth opportunities in digital media and content creation. As organizations increasingly adopt AI-powered creative tools, Adobe remains well-positioned to capture a significant share of the value generated by the next wave of creative and marketing workflows.

What About Adobe’s Peers?Alphabet (GOOGL - Free Report) continues to broaden its generative AI stack across models, tooling and security. Alphabet’s global expansion of Search Live reflects Google’s broader push to integrate generative AI more deeply into its core search experience. Alphabet’s Google introduced Lyria 3 Pro, expanding its portfolio of generative AI tools across different creative domains.

Salesforce’s (CRM - Free Report) expanding generative AI portfolio positions it to capitalize on growing AI opportunities. Since launching Einstein GPT in March 2023, Salesforce has strengthened its AI capabilities through strategic investments. Salesforce allocated $1 billion through its venture capital fund for generative AI and deployed more than $850 million by October 2025.

ADBE’s Price PerformanceShares of Adobe have lost 44.2% year to date, underperforming the industry.

Image Source: Zacks Investment Research

ADBE’s Discounted ValuationADBE trades at a price-to-earnings value ratio of 7.55, lower than the industry average of 19.84.

Image Source: Zacks Investment Research

Estimate Movement for ADBEThe Zacks Consensus Estimate for ADBE’s fiscal third and fourth-quarter 2026 earnings per share has moved north in the last 30 days. The same holds true for fiscal 2026 and 2027.
 

Image Source: Zacks Investment Research

© David Tran / iStock Editorial via Getty Images

Few large-cap software names have fallen as far, as fast, as Adobe (NASDAQ:ADBE | ADBE Price Prediction) over the past year. The stock has gone from a creative-software bellwether to a value puzzle, with the market pricing in AI disruption while management keeps raising guidance. That gap is where our model sees opportunity.

Adobe trades at $194.90 as of June 22, 2026. Our 24/7 Wall St. price target for Adobe is $264.05 over the next 12 months, implying 35.48% upside. Our recommendation is buy, with confidence of 90%.

24/7 Wall St. Price Target Summary Metric Value Current Price $194.90 24/7 Wall St. Price Target $264.05 Upside 35.48% Recommendation BUY Confidence Level 90% A Year of Pain Meets a Beat-and-Raise Quarter ADBE has fallen 44.31% year to date and 48.29% over the past year, with shares trading 28% below the 52-week high of $392.58 and just above the $190.12 low.

Yet the fundamentals remain intact. Q2 FY2026 delivered record revenue of $6.62 billion, up 13% year over year, with non-GAAP EPS of $5.96 marking the fifth consecutive beat. AI-first ARR tripled to exceed $500 million, and management raised FY2026 revenue guidance to $26.50B–$26.60B.

The selling pressure comes from elsewhere. Citi cut its price target to $228 from $264 on June 20, citing a roughly $500 million implied reduction to organic ARR as Adobe pivots toward freemium acquisition. Sector-wide AI subscription fears, the CFO transition (Dan Durn departed June 15, 2026), and CEO succession have compounded the de-rating.

The Case for $328 and Above Bulls point to AI monetization that is accelerating, not stalling. AI-first ARR moved from a $250M target in Q3 FY2025 to $500M+ by Q2 FY2026. The CX Enterprise Coworker launch and Cannes Lions partnerships with Accenture, Omnicom, WPP, Anthropic, and Microsoft reposition Adobe as agentic infrastructure rather than disruption target.

Operating cash flow hit $2.17 billion in Q2, funding $2.111 billion in buybacks. Our bull case price target is $328.58, a 68.59% return. The Reddit thesis put it bluntly: “Wall Street thinks AI is coming for Adobe’s lunch. I think Adobe already put it behind a paywall and called it dinner.”

What Could Go Wrong The bear case is real. Freedom Broker downgraded ADBE to Hold from Buy, calling Adobe’s growth “acquired rather than organic” and pointing to a “show-me phase.” Generative AI competitors (Figma, Canva, OpenAI) threaten the creative workflow moat, and the 132 recent insider transactions have skewed net selling.

Q2 GAAP EPS of $4.25 reflected a $70M goodwill impairment and $30M litigation accrual, although those are non-recurring items and non-GAAP EPS still beat. Our bear case target is $235.93, still a 21.05% return from here.

Adobe Price Prediction 2026-2030 At an implied forward P/E near 8x, ADBE is pricing in significant AI disruption that the numbers do not yet show. Our 24/7 Wall St. price target of $264.05 implies 35.48% upside, with 90% confidence and a buy call.

The Q2 beat-and-raise tips the scale. The setup looks constructive if Q3 ARR growth holds at the guided trajectory. The thesis weakens if Adobe walks back its FY2026 ARR growth target of 10.2% on the next earnings report.

Year 24/7 Wall St. Price Target 2026 $231.09 2027 $285.23 2028 $355.18 2029 $396.75 2030 $445.34 These projections assume Adobe continues converting AI-first ARR into durable subscription revenue. Significant upside or downside could result from regulatory resolution on Semrush, new leadership execution, or a faster-than-expected shift in creative software economics.

Choosing between Adobe (ADBE +1.00%) and Duolingo (DUOL +2.10%) requires balancing established market dominance against high-octane growth. Both companies lead their respective software niches, but which is the better buy for your portfolio?

Adobe is the gold standard for creative professionals, offering a deep suite of essential tools. Duolingo has revolutionized digital learning through gamification, expanding from languages into broader education. This comparison examines how Adobe's massive scale and cash generation stack up against Duolingo's rapid expansion and high user engagement.

The case for AdobeAdobe provides digital tools for creators and enterprises through its Creative Cloud, Document Cloud, and Experience Cloud platforms. The company serves a diverse global base including individual students, creative professionals, and massive government entities. Leadership remains in flux, as the firm currently lacks a permanent CEO and recently announced the departure of CFO Dan Durn.

In its 2025 fiscal year (FY), the company generated $23.8 billion in revenue, representing growth of 10.5% over the $21.5 billion recorded in the previous year. This resulted in net income of $7.1 billion, which is a significant increase from the $5.6 billion earned in FY 2024. This growth reflects the steady global demand for standardized digital experience software, a strength of this tech stock.

As of its November 2025 balance sheet, the debt-to-equity ratio is 0.6x. This ratio shows how much debt a company uses to finance its assets relative to the value of shareholder equity. The current ratio, which compares short-term assets to short-term liabilities, is 1.0x, while free cash flow reached $9.9 billion.

The case for DuolingoDuolingo operates a popular learning platform that uses gamification to teach languages, math, music, and chess to over 50 million daily users. The business relies on a freemium model where 9% of monthly active users pay for premium features. It faces high customer concentration, as 62% of revenue flows through the Apple App Store and 20% comes from the Alphabet Google Play Store.

For FY 2025, revenue reached $1.0 billion, a significant increase of 38.7% compared to the $748.0 million reported in FY 2024. The company reported net income of $414.1 million, producing a net margin of 39.9%. These figures highlight the company's ability to scale its user base effectively while increasing the total amount of profit kept from each dollar of sales.

As of its December 2025 balance sheet, the company maintains a debt-to-equity ratio of 0.1x and a current ratio of 2.6x. Free cash flow for the year was $369.7 million. Note that stock-based compensation represented 35.4% of operating cash flow, which inflates reported cash generation since this is a non-cash expense added back in the cash flow statement.

Risk profile comparisonAdobe faces scrutiny regarding its subscription practices, recently reaching a $150 million settlement with the Department of Justice over claims of difficult cancellation processes. The current lack of a permanent CEO and the loss of its CFO create operational uncertainty and potential strategic instability for investors. Furthermore, the rise of generative AI requires Adobe to innovate constantly to protect its proprietary customer data and defend its market share.

Duolingo is heavily dependent on platform owners for its distribution, meaning any changes to store fee structures could materially harm the business. The company also faces investigations into potential violations of federal securities laws and must navigate complex global data privacy regulations. Finally, Duolingo must compete with other AI-driven educational tools in a market where users can switch products with very low costs.

Valuation comparisonAdobe appears significantly cheaper than Duolingo because it trades at a much lower multiple of its future earnings estimates despite its current leadership uncertainty.

MetricAdobeDuolingoSector BenchmarkForward P/E8.0x44.3x37.6xP/S ratio3.3x5.6xSector benchmark uses the SPDR XLK sector ETF. Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Adobe and Duolingo are compelling stocks to buy in 2026 since both have seen substantial share price declines. The latter hit a 52-week low of $87.89 in April while the former’s low of $190.12 occurred more recently on June 18.

I own both stocks, but if I were to pick one this year, it would be Adobe. The decision isn’t to say Duolingo is bad; its massive growth and strong financials make it an attractive investment.

Duolingo shares fell due to investor concerns that AI would take business away. Instead, AI looks like it is fueling more growth. The company introduced artificial intelligence chatbots that users can practice language skills with, and this helped grow daily active users by 21% year over year to 56.5 million in the first quarter.

Despite Duolingo’s ongoing strong performance, Adobe is my pick for several reasons. The departure of its CEO and CFO inject uncertainty, causing shares to fall, but now Adobe’s stock valuation is outstanding. Its forward P/E of eight is far below the benchmark for the tech sector.

In addition, Adobe is a leader in its industry, and remains so as demonstrated by results in its fiscal Q2 ended May 29. The company achieved record revenue of $6.6 billion, a strong 13% year-over-year increase. Its combination of market leadership, growing sales, and appealing valuation make Adobe the stock to buy right now.

Adobe's (ADBE +1.30%) management team was ineffective at convincing investors about its long-term prospects.

On June 24, 2026, we present a detailed DCF analysis for Adobe Inc ADBE amidst a challenging price performance context, where the stock has seen a decline of 43.6% year-to-date and 48.1% over the past year. This analysis will provide insights into the intrinsic value of Adobe based on both earnings and free cash flow models.

DCF Earnings-based intrinsic value of $1003.98 vs current price of $197.43 (margin of safety: 72.3%) DCF FCF-based intrinsic value of $776.25 vs current price (second opinion) GF Score™ of 86/100 indicates a high reliability of the DCF inputs What Is ADBE Worth? DCF Earnings-Based Model The DCF earnings-based model for Adobe Inc utilizes a two-stage approach to estimate the intrinsic value of the stock. In the first stage, we project earnings growth for the next ten years at a rate of 25.1%. In the second stage, we apply a terminal growth rate of 4% for the following ten years. The discount rate used for both stages is 11%, which combines the risk-free rate and equity risk premium.

Parameter Value Current EPS (TTM, excl. non-recurring) $22.83 10-Year Growth Rate 25.1% 10-Year Treasury Rate 4.49% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% The calculation summary for the DCF earnings-based model is as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 25.1%, discounted at 11% $467.16 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $536.82 Intrinsic Value Growth + Terminal $1003.98 With a current price of $197.43, the intrinsic value of $1003.98 indicates that Adobe is significantly undervalued, with a margin of safety of 72.3%. It is important to note that GuruFocus uses EPS without non-recurring items, as research shows stock prices correlate more closely with earnings than free cash flow. For further details, visit the ADBE DCF Calculator.

What Does the Free Cash Flow DCF Say? The free cash flow (FCF) based intrinsic value for Adobe is estimated at $776.25. This value provides a second opinion to the earnings-based intrinsic value, reinforcing the conclusion that Adobe is significantly undervalued with a margin of safety of 74.6%. Both models agree on the undervaluation of the stock, suggesting a strong potential for recovery.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for Adobe is calculated at $595.80, providing a third perspective on the valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. All three models—DCF earnings, DCF FCF, and GF Value™—point towards a consensus that Adobe is undervalued, making it a noteworthy consideration for investors. For more information, visit the GF Value™ page.

What Does ADBE's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021).

Metric Rating GF Score™ 86/100 Financial Strength 8/10 Profitability 10/10 Growth 10/10 Valuation 2/10 Momentum 4/10 With a predictability rank of 1/5 stars, it indicates that the DCF model may be less reliable for this stock. For more details, visit the ADBE stock page.

Key Assumptions and Limitations It is essential to recognize that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, such as Adobe's, tend to produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not fully capture future market conditions.

What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—the clear verdict is that Adobe Inc is significantly undervalued. This presents a potential opportunity for investors to consider the stock in light of its intrinsic value compared to the current market price. For the full DCF analysis, visit the ADBE DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.

Frequently Asked Questions What is ADBE's intrinsic value based on DCF?

earnings-based $713.44, FCF-based $776.25

Is ADBE overvalued or undervalued?

Based on the DCF and GF Value™ consensus, ADBE is significantly undervalued.

How reliable is the DCF model for ADBE?

With a predictability rank of 1/5, the DCF model is less reliable for ADBE.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

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ESTERO, Fla.--(BUSINESS WIRE)--Hertz Global Holdings, Inc. (NASDAQ: HTZ) (“Hertz” or the “Company”), a leading global rental car company, today announced that it intends to offer shares of its common stock, par value $0.01 per share, (the “Common Stock”) at an aggregate public offering price of $100 million in a SEC-registered offering. Such shares (the “Borrowed Shares”) will be loaned by the Company to J.P. Morgan Securities LLC (in such capacity, the “Share Borrower”), one of the underwriters of the offering of the Borrowed Shares, pursuant to a share lending agreement. The Share Borrower or its affiliates will receive all of the proceeds of the offering of Borrowed Shares and neither the Company nor The Hertz Corporation, the Company’s wholly-owned indirect subsidiary (the “Hertz Corp.”), will receive any of the proceeds of the offering, but the Share Borrower will pay the Company a nominal lending fee for the use of the Borrowed Shares pursuant to the share lending agreement. The Share Borrower will be required to return the Borrowed Shares (or identical shares of Common Stock) to the Company pursuant to the terms of the share lending agreement. The Company has been informed by the Share Borrower that it or one of its affiliates intends to sell the Borrowed Shares and use the resulting short position to facilitate transactions by which investors in the Notes (as defined below) may hedge their investments through short sales or privately negotiated derivatives transactions. The activity described above could affect the market price of the Common Stock otherwise prevailing from time to time. The offering of the Borrowed Shares is contingent upon the closing of a private offering of the Exchangeable Senior First-Lien Secured PIK Notes due 2030 (the “Notes”) that Hertz Corp. intends to offer, subject to market and other conditions, in a private placement to qualifying investors. The private offering of the Notes is not contingent upon the closing of the offering of the Borrowed Shares.

The offering of the Borrowed Shares will be made by means of a prospectus. Copies of the prospectus may be obtained from J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, New York 11717, telephone 1-866-803-9204.

This press release is not an offer to sell or purchase or a solicitation of an offer to sell or purchase the Borrowed Shares or the Notes, and does not constitute an offer, solicitation or sale in any state or jurisdiction in which, or to any person to whom such an offer, solicitation or sale would be unlawful.

ABOUT HERTZ

Hertz Global Holdings, Inc. is one of the world’s leading car rental and mobility solutions providers. Its subsidiaries, including The Hertz Corporation, and licensees operate the Hertz, Dollar, Thrifty, and Firefly vehicle rental brands, with more than 11,000 rental locations in 160 countries around the globe. The Company also operates the Hertz Car Sales brand, which offers a range of quality, competitively priced used cars for sale online and at locations across the United States, and the Hertz 24/7 car-sharing business in Europe.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This press release contains “forward-looking statements” within the meaning of the federal securities laws. Words such as “expect,” “will” and “intend” and similar expressions identify forward-looking statements, which include but are not limited to statements related to our positioning, strategy, vision, forward looking investments, conditions in the travel industry, our financial and operational condition, our sources of liquidity, the proposed offering of the Borrowed Shares, the proposed offering of the Notes and the anticipated completion and timing of the offering. We caution you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that we may not be able to accurately predict or assess, including risks and uncertainties related to completion of the offering on the anticipated terms or at all, market conditions and the satisfaction of customary closing conditions related to the offering, unanticipated uses of capital and those in our risk factors that we identify in the prospectus for the offerings and our most recent annual report on Form 10-K for the year ended December 31, 2025, as filed with the U.S. Securities and Exchange Commission on February 26, 2026, and any updates thereto in the Company’s quarterly reports on Form 10-Q and current reports on Form 8-K. We caution you not to place undue reliance on our forward-looking statements, which speak only as of their date, and we undertake no obligation to update this information.

More News From Hertz Global Holdings, Inc.

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Hertz shares are retreating from recent levels. Why is HTZ stock falling? The OfferingWhy It’s Structured This WayThe offering is contingent upon the closing of a separate private offering of Exchangeable Senior First-Lien Secured PIK Notes due 2030 by Hertz’s subsidiary, The Hertz Corporation. The share lending agreement is designed to allow investors in the Notes to hedge their investments through short sales or privately negotiated derivatives transactions. J.P. Morgan will use the resulting short position to facilitate those hedging transactions.

Hertz Shares PlummetHTZ Price Action: At the time of publication, Hertz shares are trading 21.15% lower at $3.98, according to data from Benzinga Pro.

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