Track market-moving stories before they get noisy

In the latest close session, Sirius XM (SIRI - Free Report) was up +1.46% at $27.86. The stock outpaced the S&P 500's daily loss of 0.57%. On the other hand, the Dow registered a gain of 0.64%, and the technology-centric Nasdaq decreased by 1.15%.

Shares of the satellite radio company witnessed a gain of 5.25% over the previous month, beating the performance of the Consumer Discretionary sector with its gain of 2.7%, and the S&P 500's gain of 2.14%.

Investors will be eagerly watching for the performance of Sirius XM in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.78, reflecting a 36.84% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $2.14 billion, up 0.11% from the year-ago period.

In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $3.1 per share and a revenue of $8.56 billion, indicating changes of -2.82% and +0.02%, respectively, from the former year.

Investors should also note any recent changes to analyst estimates for Sirius XM. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.

Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Sirius XM is currently a Zacks Rank #3 (Hold).

Investors should also note Sirius XM's current valuation metrics, including its Forward P/E ratio of 8.85. This valuation marks a discount compared to its industry average Forward P/E of 12.69.

It is also worth noting that SIRI currently has a PEG ratio of 0.59. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Broadcast Radio and Television was holding an average PEG ratio of 1.04 at yesterday's closing price.

The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This industry, currently bearing a Zacks Industry Rank of 109, finds itself in the top 45% echelons of all 250+ industries.

The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Published June 16, 2026 4:21pm EDT

The layoffs took effect Tuesday and follow multiple rounds of job cuts over the past year Elective vehicle-maker Rivian is laying off hundreds of workers in its service and customer organization.

A company spokesperson told FOX Business that the job cuts represent less than 2% of Rivian's workforce, which totaled about 15,200 employees at the end of 2025. Workers affected by the layoffs may apply for other open roles at the company.

"We recently restructured a handful of teams within Rivian as we work to profitably scale our business," the spokesperson said.

AUTOMAKER GEARS UP FOR SELF-DRIVING FUTURE WITH NEW CHIP

Rivian began releasing R2 SUVs last week, which are a key part of its product roadmap. (Scott Olson/Getty Images)

The job cuts took effect on Tuesday and affected Rivian's service and customer division, which is responsible for sales and marketing duties, as the company looks to restructure its teams to grow efficiently while rolling out a new model.

The Wall Street Journal first reported the layoffs.

Rivian recently conducted multiple rounds of layoffs in the last year while it prepared for the launch of the R2 SUV, which factors heavily into the EV-maker's roadmap for future products.

RIVIAN CEO DISCUSSES TARIFFS, SAYS EV MAKER HAS 'VERY US-CENTRIC SUPPLY CHAIN'

Ticker Security Last Change Change % RIVN RIVIAN AUTOMOTIVE INC. 15.93 -0.75 -4.50% It cut over 600 jobs, or 4.5% of its workforce, in October amid softer demand for its vehicles following the expiration of EV tax credits in October.

The R2 officially debuted last week with a variant that had a larger number of optional add-ons for a starting price around $58,000 – while the automaker is planning to release more affordable versions in the future.

RIVIAN TO LAY OFF 10% OF SALARIED STAFF

Rivian also conducted layoffs last year following the expiration of EV tax credits. (Reuters/Kevin Krolicki/File Photo)

The company is hoping that the lower-cost model will broaden demand and strengthen its sales outlook as it strives for profitability.

Rivian has said that it no longer expects to meet its 2027 adjusted core profit target as it ramps up spending on research and development to accelerate its autonomous driving roadmap.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

Reuters contributed to this report.

NEW YORK--(BUSINESS WIRE)--JetBlue (NASDAQ: JBLU) today announced the next evolution of its award-winning Mint® experience with the introduction of Kent Hospitality Group and its strategic partner, Four Clovers Hospitality Group, as JetBlue's new onboard culinary partners. The collaboration brings a fresh, sophisticated and distinctly New York approach to inflight dining, elevating JetBlue's premium business class experience with the creative forces behind some of the city's most coveted restau.

Key Takeaways Lam Research expects advanced packaging revenues to grow more than 50% in 2026.AI chips need advanced packaging to boost performance, bandwidth and power efficiency.Lam Research's Q3'26 revenues rose 24% year over year to a record $5.84 billion. Lam Research Corporation’s (LRCX - Free Report) advanced packaging business is emerging as an important growth driver. With artificial intelligence (AI) driving major changes in chip design, this business could become a meaningful catalyst for future growth.

Unlike traditional semiconductor manufacturing, AI chips require advanced packaging techniques to connect multiple processors and memory components in a compact structure. This improves performance, bandwidth and power efficiency. As a result, chipmakers are increasing investments in packaging technologies, creating additional demand for Lam Research’s etch and deposition equipment.

The company expects advanced packaging revenues to grow more than 50% in 2026, far outpacing many other semiconductor equipment categories. Lam Research is benefiting from rising adoption of high-bandwidth memory (HBM), AI accelerators and chiplet-based architectures, all of which depend heavily on advanced packaging processes.

The company’s overall business remains strong. In the fiscal third quarter of 2026, revenues increased 24% year over year to a record $5.84 billion, while non-GAAP gross margin expanded 90 basis points to 49.9%. Systems revenues climbed 24% to $3.73 billion, reflecting healthy demand across memory and foundry customers. Customer Support Business Group revenues also rose 25% to a record $2.11 billion, providing recurring revenue support.

The long-term opportunity for advanced packaging may be even larger. As AI models become more powerful, semiconductor companies are expected to rely increasingly on advanced packaging to overcome the limits of traditional chip scaling. This shift could expand Lam Research’s served market beyond conventional wafer processing. If the company executes well in this market, packaging could evolve from a niche business into a meaningful contributor to future revenue and earnings growth.

LRCX’s Rivals Are Also Targeting Packaging GrowthTwo major Lam Research competitors, Applied Materials, Inc. (AMAT - Free Report) and KLA Corporation (KLAC - Free Report) , are also benefiting from the advanced packaging boom. Both companies are expanding their presence in technologies that support AI chips, high-bandwidth memory and chiplet-based architectures.

Applied Materials is perhaps the closest competitor to Lam Research in advanced packaging. The company has highlighted advanced packaging as a multibillion-dollar opportunity and continues to develop materials engineering solutions for 2.5D and 3D chip integration. In the last reported results for the second quarter of fiscal 2026, Applied Materials’ revenues increased 11% to $7.91 billion, with its Semiconductor Systems segment remaining the primary growth engine. Rising investments in AI accelerators and HBM are expected to drive further demand for its packaging-related tools.

KLA participates in the market through process control, inspection and metrology solutions. As advanced packages become more complex, chipmakers require additional inspection steps to improve yields and reduce defects. KLA’s second-quarter fiscal 2026 revenues increased 11.5% year over year to $3.42 billion. The company continues to benefit from growing demand for advanced packaging process control technologies. KLAC expects its semiconductor process control advanced packaging portfolio revenues to grow from about $635 million in 2025 to about $1 billion in 2026.

For Lam Research, the opportunity is significant, but competition is intense. Continued innovation in etch and deposition technologies will be critical if the company wants to capture a larger share of the rapidly expanding advanced packaging market.

LRCX’s Share Price Performance, Valuation and EstimatesShares of Lam Research have surged 127.2% year to date compared with the Zacks Electronics – Semiconductors industry’s rise of 52.5%.

Lam Research YTD Price Return Performance
Image Source: Zacks Investment Research

From a valuation standpoint, Lam Research trades at a forward price-to-earnings ratio of 50.78, significantly higher than the industry’s average of 35.02.

Lam Research Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Lam Research’s fiscal 2026 and 2027 earnings implies a year-over-year increase of approximately 37.7% and 35.8%, respectively. Estimates for fiscal 2026 have been revised upward over the past seven days, while estimates for fiscal 2027 have been raised northward over the past 30 days.

Image Source: Zacks Investment Research

Lam Research currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

On June 16, 2026, we present a discounted cash flow (DCF) analysis for CSX Corp CSX . The company has shown notable price performance, with a year-to-date increase of 31.6% and a one-year gain of 49.6%. Below are key points from our analysis:

DCF Earnings-based intrinsic value of $30.68 vs current price of $47.39 (margin of safety: -54.5%) DCF FCF-based intrinsic value of $26.64 vs current price (second opinion) GF Score™ of 86/100 indicating high reliability of the DCF inputs What Is CSX Worth? DCF Earnings-Based Model The DCF earnings-based model evaluates CSX's intrinsic value based on its projected earnings growth over the next decade. The model operates in two stages: a growth phase followed by a terminal phase. Below are the assumptions used in the calculation:

Parameter Value Current EPS (TTM, excl. non-recurring) $1.70 10-Year Growth Rate 11.8% 10-Year Treasury Rate 4.44% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage, we project that CSX's EPS will grow at an annual rate of 11.8% for the next 10 years, discounted at a rate of 11%. The value derived from this growth phase is $17.69 per share. In the second stage, we assume a terminal growth rate of 4% for the subsequent 10 years, also discounted at 11%, yielding a terminal value of $12.99 per share. The summary of the calculations is as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 11.8%, discounted at 11% $17.69 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $12.99 Intrinsic Value Growth + Terminal $30.68 With the current price of CSX at $47.39, the intrinsic value of $30.68 indicates that the stock is modestly overvalued, with a margin of safety of -54.5%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research shows that stock prices correlate more closely with earnings than free cash flow. For further details, you can visit the CSX DCF Calculator.

What Does the Free Cash Flow DCF Say? The free cash flow (FCF)-based intrinsic value for CSX is calculated at $26.64. When comparing this to the earnings-based intrinsic value of $30.68, both models suggest that CSX is modestly overvalued, with a margin of safety of -77.9%. This significant difference in intrinsic values highlights the importance of considering multiple valuation methods.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for CSX is calculated at $35.44, providing a third perspective on the company's 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™—indicate that CSX is overvalued at its current price. For more information, visit the GF Value™ page.

What Does CSX'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 based on backtesting from 2006 to 2021.

Metric Rating GF Score™ 86/100 Financial Strength 4/10 Profitability 9/10 Growth 8/10 Valuation 5/10 Momentum 10/10 CSX has a predictability rank of 1/5 stars, indicating that the DCF model may be less reliable for this stock. For more information, visit the CSX stock page.

Key Assumptions and Limitations It is essential to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Stocks with low predictability ratings, such as CSX, tend to produce less reliable DCF estimates. The terminal growth rate of 4% used in this analysis is a simplifying assumption that may not reflect actual future performance.

What This Means for Investors In summary, the three valuation models—DCF earnings, DCF FCF, and GF Value™—all suggest that CSX is currently overvalued. This conclusion is supported by the significant margins of safety observed in both DCF models.

For the full DCF analysis, visit the CSX 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 CSX's intrinsic value based on DCF?

[Answer: earnings-based $30.68, FCF-based $26.64]

Is CSX overvalued or undervalued?

[Answer using DCF + GF Value™ consensus]

How reliable is the DCF model for CSX?

[Answer using predictability rank 1/5]

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].

Key Takeaways DELL fits the screen with 47.4% fiscal 2026 revenue growth and 26.4% long-term EPS growth.HPE targets 31.3% fiscal 2026 revenue growth, with a 32% long-term earnings growth rate.These stocks combine dividend growth histories with revenue and earnings growth potential. Wall Street rallied comfortably on June 15, 2026, with major indices like the Dow Jones Industrial Average hitting a record high, as global oil prices tumbled to a three-month low amid fresh hopes that a U.S.-Iran peace deal could end the ongoing energy supply crisis. 

However, the long-term viability of this investor optimism remains shrouded in uncertainty, considering Israel’s latest announcement to keep its defense force in Lebanon indefinitely. 

Against this backdrop, risk-averse investors may find that steady dividend-growth stocks offer a more balanced mix of income and stability than high-beta growth plays at this stage.

These dividend-growth stocks boast a consistent track record of raising payouts, underscoring the balance-sheet strength and cash-flow resilience required to navigate a period in which the traditional growth narrative is being reassessed.

Stocks with a strong history of year-over-year dividend growth can help build a resilient portfolio with greater potential for capital appreciation compared to simple dividend-paying or high-yield stocks. 

We have selected three dividend growth stocks — Dell Technologies (DELL - Free Report) , Hewlett Packard (HPE - Free Report) and Taiwan Semiconductor (TSM - Free Report) — that could be solid choices for your portfolio.

Why Is Dividend Growth Better?Stocks with a strong history of dividend growth are typically associated with mature companies that are less prone to sharp market swings, allowing them to serve as a hedge against economic or political uncertainty, as well as broader market volatility. Their steadily rising payouts provide a measure of downside protection.

These companies are generally backed by solid fundamentals, making them attractive long-term dividend-growth investments. Key strengths include durable business models, consistent profitability, expanding cash flows, healthy liquidity, strong balance sheets and attractive valuations.

A consistent history of dividend growth underscores the potential for continued growth ahead.

Although these stocks do not necessarily have the highest yields, they have outperformed the broader stock market or any other dividend-paying stock for an extended period.

As a result, selecting dividend-growth stocks appears to be a winning strategy when other key parameters are taken into account.

5-Year Historical Dividend Growth Greater Than Zero: This selects stocks with a solid dividend growth history.

5-Year Historical Sales Growth Greater Than Zero: This represents stocks with a strong record of growing revenues.

5-Year Historical EPS Growth Greater Than Zero: This represents stocks with a solid earnings growth history.

Next 3-5 Year EPS Growth Rate Greater Than Zero: This represents the rate at which a company’s earnings are expected to grow. Improving earnings should help companies sustain dividend payments.

Price/Cash Flow Less Than M-Industry: A ratio lower than the industry median indicates that a stock is undervalued within its industry, meaning an investor would pay less for the company’s cash flow.

52-Week Price Change Greater Than S&P 500 (Market Weight): This ensures that a stock has appreciated more than the S&P 500 over the past year.

Top Zacks Rank: Stocks having a Zacks Rank #1 (Strong Buy) and 2 (Buy) generally outperform their peers in all types of market environments.

Growth Score of B or better: Our research shows that stocks with a Growth Score of A or B, when combined with a Zacks Rank #1 or 2, offer the best upside potential.

These few criteria alone narrowed the universe from more than 7,700 stocks to just three.

Here are the three stocks that fit the bill:

Texas-based Dell Technologies is a leading provider of servers, storage, and persona computers. The company’s IT solutions support customers in traditional infrastructure and multi-cloud environments. The Zacks Consensus Estimate for DELL’s fiscal 2026 revenues suggests a year-over-year improvement of 47.4%. The stock boasts a long-term (three-to-five years) earnings growth rate of 26.40%. It has an annual dividend yield of 0.64%.

DELL currently sports a Zacks Rank #1 and has a Growth Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.

Headquartered in Texas, Hewlett Packard is an enterprise-facing hardware and service business that focuses on servers, supercomputers, storage, networking and cloud services. The Zacks Consensus Estimate for HPE’s fiscal 2026 revenues suggests a year-over-year improvement of 31.3%. The stock boasts a long-term earnings growth rate of 32% and has an annual dividend yield of 1.18%.

HPE currently sports a Zacks Rank #1 and a Growth Score of B.

Taiwan-based Taiwan Semiconductor is the world's first dedicated semiconductor foundry. It manufactures integrated circuits for its customers based on their proprietary IC designs using its advanced production processes. The Zacks Consensus Estimate for TSM’s  2026 revenues suggests a year-over-year improvement of 32.2%. The stock boasts a long-term earnings growth rate of 22.4% and has an annual dividend yield of 0.71%.

TSM currently holds a Zacks Rank #2 and a Growth Score of A.  

Dell Technologies (NYSE: DELL) announces that its board of directors has declared a quarterly cash dividend of $0.63 per common share, which will be payable on July 31 to shareholders of record as of July 21.

About Dell Technologies

Dell Technologies NYSE:DELL helps organizations and individuals build their digital future and transform how they work, live and play. The company provides customers with the industry’s broadest and most innovative technology and services portfolio for the AI era.

Copyright © 2026 Dell Inc. or its subsidiaries. All Rights Reserved. Dell Technologies, Dell, EMC and Dell EMC are trademarks of Dell Inc. or its subsidiaries. Other trademarks may be trademarks of their respective owners.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260616188737/en/

The logo of EssilorLuxottica is seen during the Viva Technology conference dedicated to innovation and startups at Porte de Versailles exhibition center in Paris, France, June 12, 2025.... Purchase Licensing Rights, opens new tab Read more

CompaniesJune 16 (Reuters) - EssilorLuxottica (ESLX.PA), opens new tab, the world's largest ​eyewear maker, has signed a long-term ‌deal with chipmaking equipment company Applied Materials (AMAT.O), opens new tab to develop augmented reality display technology and AI ​glasses, the companies said on Tuesday.

Here ​are some details:

Get a daily digest of breaking business news straight to your inbox with the Reuters Business newsletter. Sign up here.

EssilorLuxottica and Applied Materials will ⁠scale up commercialisation of AI glasses

Research ​and development will focus on advanced optical ​technologies

EssilorLuxottica already leads the AI-glasses market through a long-term partnership with Meta (META.O), opens new tab to sell smart glasses under ​the Ray-Ban and Oakley brands

Their first ​device with a built-in display, the Ray-Ban Meta Display, was ‌launched ⁠in 2025

AI-powered glasses embed a camera, microphone and speakers into a conventional frame, with an AI voice assistant that answers ​questions and ​describes surroundings

Augmented ⁠reality, which overlays digital images onto the user's field of ​vision, is a far more complex ​optical ⁠challenge

California-based Applied Materials makes the specialised equipment used to engineer the ultra-thin material ⁠layers ​at the heart of semiconductor ​chips needed for AR displays

Reporting by Gianluca Lo Nostro; ​Editing by Emelia Sithole-Matarise and Barbara Lewis

Our Standards: The Thomson Reuters Trust Principles., opens new tab

, /PRNewswire/ -- The Gross Law Firm issues the following notice to shareholders of Zoetis Inc. (NYSE: ZTS).

Shareholders who purchased shares of ZTS during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.

CONTACT US HERE:

https://securitiesclasslaw.com/securities/zoetis-inc-loss-submission-form-2/?id=188276&from=4

CLASS PERIOD: January 14, 2025 to May 6, 2026

ALLEGATIONS: The complaint alleges that during the class period, Defendants issued materially false and/or misleading statements and/or failed to disclose that: (i) veterinarian prescription growth and adoption of Zoetis' Librela, a canine pain treatment, were sharply weakening as clinicians became more cautious following FDA safety warnings concerning serious neurological complications in dogs; (ii) Zoetis' Simparica Trio was losing significant market share to a lower priced competing canine parasiticide with broader indicated use in a slowing overall market; and (iii) Zoetis' dermatology products, Apoquel and Cytopoint, were losing substantial market share to a newly launched competing canine treatment.

DEADLINE: July 27, 2026 Shareholders should not delay in registering for this class action. Register your information here: https://securitiesclasslaw.com/securities/zoetis-inc-loss-submission-form-2/?id=188276&from=4

NEXT STEPS FOR SHAREHOLDERS: Once you register as a shareholder who purchased shares of ZTS during the timeframe listed above, you will be enrolled in a portfolio monitoring software to provide you with status updates throughout the lifecycle of the case. The deadline to seek to be a lead plaintiff is July 27, 2026. There is no cost or obligation to you to participate in this case.

WHY GROSS LAW FIRM? The Gross Law Firm is a nationally recognized class action law firm, and our mission is to protect the rights of all investors who have suffered as a result of deceit, fraud, and illegal business practices. The Gross Law Firm is committed to ensuring that companies adhere to responsible business practices and engage in good corporate citizenship. The firm seeks recovery on behalf of investors who incurred losses when false and/or misleading statements or the omission of material information by a company lead to artificial inflation of the company's stock. Attorney advertising. Prior results do not guarantee similar outcomes.

CONTACT:
The Gross Law Firm
15 West 38th Street, 12th floor
New York, NY, 10018
Email: [email protected]
Phone: (646) 453-8903

SOURCE The Gross Law Firm

NEW YORK, June 16, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Zoetis Inc. (“Zoetis” or the “Company”) (NYSE: ZTS). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased. 

The class action concerns whether Zoetis and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

You have until July 27, 2026, to ask the Court to appoint you as Lead Plaintiff for the class if you purchased or otherwise acquired Zoetis securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.   

[Click here for information about joining the class action]  

On May 7, 2026, Zoetis reported financial results for the first quarter of 2026.  Among other items, Zoetis reported net income of $601 million, flat year over year, and cut its full year 2026 profit guidance to between $6.85 and $7 a share, down from prior guidance of $7.00 to $7.10 a share.  In the earnings release, CEO Kristin Peck said that “the first quarter unfolded in a more challenging operating environment than we anticipated. Pet owners demonstrated increased price sensitivity, resulting in a decline in veterinary visits and softer demand[.]” 

On this news, Zoetis’s stock price fell $23.91 per share, or 21.5%, to close at $87.31 per share on May 7, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com. 

Attorney advertising. Prior results do not guarantee similar outcomes.  

CONTACT: 
Danielle Peyton 
Pomerantz LLP 
[email protected] 
646-581-9980 ext. 7980 

On June 16, 2026, we present a discounted cash flow (DCF) analysis for Elevance Health Inc ELV . The stock has shown a price performance of -3.5% over the past week, +2.8% over the past month, +15.8% year-to-date, and +6.7% over the past year.

DCF Earnings-based intrinsic value of $643.27 vs current price of $401.89 (margin of safety: 37.5%) DCF FCF-based intrinsic value of $396.80 vs current price (second opinion: fair valued with -1.3% margin of safety) GF Score™ of 90/100 indicating high reliability of the DCF inputs What Is ELV Worth? DCF Earnings-Based Model The DCF earnings-based model for Elevance Health Inc ELV utilizes a two-stage approach, where we first project earnings growth for the initial 10 years, followed by a terminal growth phase. The current EPS, excluding non-recurring items, is $30.78, and we anticipate a growth rate of 14.0% over the next decade. The discount rate applied is 11%, which combines a risk-free rate of 5% and an equity risk premium of 6%.

Parameter Value Current EPS (TTM, excl. non-recurring) $30.78 10-Year Growth Rate 14.0% 10-Year Treasury Rate 4.44% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage, we expect EPS to grow at 14.0% annually for 10 years, resulting in a growth stage value of $357.47 per share. In the second stage, we apply a terminal growth rate of 4% for the next 10 years, yielding a terminal stage value of $285.80 per share. The intrinsic value is calculated by summing both stages:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 14.0%, discounted at 11% $357.47 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $285.80 Intrinsic Value Growth + Terminal $643.27 With the current price at $401.89, the intrinsic value of $643.27 indicates that the stock is significantly undervalued, with a margin of safety of 37.5%. It is important to note that GuruFocus uses EPS without non-recurring items because research shows stock prices correlate more closely with earnings than free cash flow. For further details, visit the ELV DCF Calculator.

What Does the Free Cash Flow DCF Say? The free cash flow (FCF)-based intrinsic value for Elevance Health Inc is calculated at $396.80. When compared to the earnings-based intrinsic value of $643.27, the FCF model suggests a different perspective, indicating that the stock is fair valued with a margin of safety of -1.3%. This divergence highlights the importance of considering multiple valuation methods when assessing a stock's worth.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for Elevance Health Inc is calculated at $508.90, providing a third perspective on valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. In this case, while the DCF earnings model suggests significant undervaluation, the FCF model indicates fair valuation, and GF Value™ falls in between, suggesting that all three models present a nuanced view of ELV's valuation. For more information, visit the GF Value™ page.

What Does ELV'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 based on backtested data from 2006 to 2021.

Metric Rating GF Score™ 90/100 Financial Strength 5/10 Profitability 8/10 Growth 9/10 Valuation 8/10 Momentum 8/10 With a predictability rank of 2 out of 5 stars, it indicates that the DCF model may be less reliable for this stock. For more details, visit the ELV 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 Elevance Health Inc, produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not reflect future market conditions accurately.

What This Means for Investors In synthesizing the three valuation models—DCF earnings, DCF FCF, and GF Value™—we find a mixed picture for Elevance Health Inc. The DCF earnings model suggests the stock is significantly undervalued, while the FCF model indicates it is fair valued. The GF Value™ falls in between these assessments. Overall, investors should consider the varying perspectives before making investment decisions. For the full DCF analysis, visit the ELV 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 ELV's intrinsic value based on DCF?

According to our analysis, the earnings-based intrinsic value is $643.28, while the FCF-based intrinsic value is $396.80.

Is ELV overvalued or undervalued?

The DCF earnings model suggests that ELV is undervalued, while the FCF model indicates it is fair valued. The GF Value™ also provides a mixed perspective.

How reliable is the DCF model for ELV?

With a predictability rank of 2 out of 5 stars, the DCF model's reliability for ELV is considered lower.

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].

© Stockcrafterpro / Shutterstock.com

Western Digital (NASDAQ:WDC | WDC Price Prediction) stock is up 7% in Tuesday morning trading, changing hands near $701 and setting a fresh all-time high. The catalyst is a Morgan Stanley note that reiterated an Overweight rating and lifted its WDC price target by 33%.

The upgrade extends a powerful run. Western Digital stock closed Monday up 16.1% at $653.53, a third straight up day with a Monday intraday high of $658.80.

Seagate Technology (NASDAQ:STX) stock is participating, up 5% to around $1,072 in the early Tuesday hours. SanDisk (NASDAQ:SNDK) and Micron Technology (NASDAQ:MU) shares are also rising modestly, each up 1% as the AI storage trade broadens across the complex.

Morgan Stanley’s 33% Price-Target Hike Lights the Fuse Morgan Stanley raised its Western Digital stock price target to $650 from $488, framing the company’s dual-tracked UltraSMR and HAMR roadmap as undervalued by investors. The bank described HAMR as a source of reliability and strength rather than a technology gap versus peers.

The firm also lifted its per-share earnings estimates for Western Digital to $22.40 for next year and $43.47 for 2028. Morgan Stanley argued Western Digital stock could double next year if its bull-case pricing assumptions play out.

The note lands on top of unusually strong fundamentals. Western Digital reported Q3 FY2026 revenue of $3.34 billion, up 46% year over year (YoY), with non-GAAP gross margin crossing 50% for the first time. Moreover, Western Digital’s management raised the company’s dividend by 20% to $0.15 per share.

Seagate Gains 5% as the AI Storage Trade Broadens Seagate stock is riding the same tailwind. Morgan Stanley separately raised its STX price target to $1,035 from $767 on June 15, while Mizuho and Citi pushed their targets to $1,090 and $1,150, respectively.

The fundamentals back the optimism. Seagate posted Q3 FY2026 non-GAAP revenue of $3.11 billion, up 44% YoY, with free cash flow of $953 million and the data center segment accounting for 80% of total revenue.

CEO Dave Mosley asserted that “Seagate is entering a new era of structural growth as AI applications amplify data creation.” HAMR-based Mozaic drives sit at the center of that thesis, and the analyst community is leaning in.

Super-cycle or Bubble? The Debate Heats Up The community is split. The bulls point to a memory and storage super-cycle in motion: SanDisk’s datacenter segment jumped 645% YoY to $1.47 billion last quarter, and Micron just guided Q3 revenue to $33.5 billion with non-GAAP gross margin near 81%.

The bears counter that valuations have re-rated very quickly. Western Digital stock now trades at a P/E ratio of 39x with a 50-day moving average of $456.29, and the company’s prediction-markets dashboard flags insider net direction as selling. Seagate insiders have also trimmed their positions in recent weeks.

Wall Street still skews bullish. Western Digital stock carries 21 Buy ratings against 3 Holds and 1 Sell, and Seagate stock shows a similar split with an analyst consensus target of $885.91. Reddit chatter on the storage complex registered a very bullish sentiment score of 88 on Monday.

What to Watch Investors can watch for whether Western Digital stock holds above $700. Follow-on analyst notes and any Computex 2026 commentary could keep momentum traders active through the afternoon.

Micron’s upcoming earnings print is the next major data point on the calendar. A confirming beat could reinforce the super-cycle narrative, while any guide-down may give bears the opening they’ve been looking for across WDC, STX, and other memory/storage stocks like Micron Technology (NASDAQ:MU) and SanDisk (NASDAQ:SNDK).

Western Digital WDC shares have been an immensely lucrative investment in 2026, currently up 250% year-to-date on insatiable demand for AI data center storage and a sold-out HDD inventory.

But discipline is the cornerstone of successful investing; while the hardware boom paints a “rosy” macro picture, a look under the hood suggests the WDC rally may have decoupled from reality.

There are reasons to believe that Western Digital stock is poised for a near-term pullback, which makes now the perfect time to take profit.

At the time of writing, Western Digital stock is trading at a rather stretched forward price-to-earnings (P/E) multiple of more than 58x.

Investors use P/E multiples to assess a company’s valuation relative to its expected future earnings, and with the rise of online trading platforms, tracking these metrics has become much more accessible.

For context, WDC stock currently trades at a significantly higher earnings multiple than AI giant Nvidia, which commands a far more reasonable forward P/E of around 24x.

And that’s when Nvidia controls the higher-margin compute layer of the AI revolution, while WDC plays in the lower-margin storage hardware space.

So, Western Digital is essentially making you pay a premium that heavily outstrips the core engine of AI growth—and that’s a fundamental mismatch.

Investors should note that at the current valuation, options pricing is beginning to turn more dovish on Western Digital shares as well.

According to Barchart, the put-to-call ratio on contracts expiring late July sits at 1.92 currently – indicating a strong bearish skew.

And the lower price on those contracts is set at about $617 at writing, signaling potential for over 10% decline in WDC over the next four-to-six weeks.

Crucially, this bearish sentiment is echoed in technicals. Western Digital’s relative strength index (RSI) has already climbed into the early 70s, indicating “overbought” conditions.

Such a technical setup often triggers algorithmic selling in the near-term.

The stock market is a game of expectations, and right now, Western Digital has absolutely no room for error.

With WDC stock hovering around $700, the market seems to have pulled years of “future growth” into the present.

Disciplined investors should note that cyclical hardware demand can cool just as quickly as it heats up, and any future supply chain normalization or capital expenditure slowdown from big tech may trigger a massive correction.

Western Digital has handed investors a life-changing 200% return in a matter of months – but pigs get fat, hogs get slaughtered. So, it may now be time to lock in those spectacular gains and exit the position.

Investors should also note that analysts—while maintaining their “Strong Buy” rating on WDC – have the highest price target set at $685 currently.

This means the AI infrastructure stock is already trading above the most ambitious Wall Street estimate.

Yum Brands on Tuesday announced it is selling Pizza Hut to private equity firm LongRange Capital for roughly $1.5 billion.

The deal excludes the pizza chain's locations in mainland China; Yum China will acquire those in a separate transaction for about $1.2 billion.

The deals cap off years of struggles for Pizza Hut, which has weighed on Yum's overall financial performance. In the U.S., the pizza chain has transitioned from the sit-down format and salad bars of yore to focus on delivery and carryout — far behind the curve. Rival Domino's Pizza has gobbled up market share from Pizza Hut for years; third-party delivery apps like DoorDash have further stolen sales from the chain.

Shares of Yum were up nearly 2% in morning trading Tuesday.

In November, Yum said it was exploring strategic options for Pizza Hut. On Tuesday, the company said its leadership team and board determined that selling Pizza Hut would provide "the strongest path" to maximize shareholder value and give the pizza chain an ownership structure "tailored to its distinct markets, competitive strengths and long-term priorities."

Across both deals, Yum expects to receive about $2.3 billion in net proceeds after taxes, closing adjustments and fees, excluding a possible earnout of $75 million by 2030 from LongRange. Yum also anticipates one-time expenses of about $85 million during the rest of 2026 tied to the transactions.

The company's management will provide more details about the financial impact of the transactions during Yum's second-quarter conference call on July 30. Yum expects the sales to close in the third quarter, subject to regulatory approval.

Brothers Dan and Frank Carney founded Pizza Hut in 1958 in Wichita, Kansas. A year later, they were franchising the concept.

In 1969, Pizza Hut went public. Just two years later, it was the biggest pizza chain in the world, although it lost that title in 2017 to Domino's.

The deal severs Pizza Hut's decades-long ties to Taco Bell and KFC, its sister brands in Yum's portfolio.

PepsiCo bought Pizza Hut in 1977, marking the beverage giant's entry into the restaurant business. By 1986, it also owned Taco Bell and KFC. When Pepsi spun off its restaurant unit in 1997, the holding company was dubbed Tricon Global Restaurants — later renamed to Yum.

At the end of 2025, Pizza Hut had nearly 20,000 locations across 108 countries and territories and reported $12.8 billion in annual system sales, according to regulatory filings from Yum. The U.S. is its biggest market, representing about 40% of its system sales, followed by China with roughly 20% of its system sales.

Correction: The headline was updated to reflect that the $2.7 billion sale value includes deals with both LongRange Capital and Yum China.

SummaryCompaniesYum China will buy the mainland China business for $1.2 billionLongRange Capital will acquire the rest of Pizza Hut for $1.5 billionUnlike the US business, the China business has been doing wellJune 17 (Reuters) - Yum Brands (YUM.N), opens new tab said ​on Tuesday it would sell its Pizza Hut chain for a combined $2.7 billion in two deals that highlight separate trajectories ‌for its business in China and the rest of the world.

The chain's stores in the U.S. and the rest of the world except for mainland China will be sold to private equity firm LongRange Capital for $1.5 billion.

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Those operations, which encompass over 15,500 restaurants in more than 100 countries, have struggled in recent years, hit by rising inflation, higher ​commodity costs and the growing use of GLP-1 weight-loss drugs, which has nudged consumers toward healthier options. U.S. Pizza Hut comparable store ​sales have declined for 10 straight quarters.

The China business, which has 4,375 stores but has been doing much better, ⁠will be acquired by its longtime operator Yum China Holdings (9987.HK), opens new tab for $1.2 billion.

"LongRange Capital is effectively buying a globally recognised brand in need of sharper focus, ​while Yum China's move gives local operators more control over a key market," said Sam North, market analyst at eToro.

Yum said last year it was ​exploring strategic options for Pizza Hut and entered exclusive talks with LongRange in May.

Pizza Hut was acquired by PepsiCo (PEP.O), opens new tab in 1977 and spun off in 1997 alongside KFC and Taco Bell to form the company that became Yum Brands in 2002. Yum, which will retain Taco Bell and KFC, expects the sale to close in the third quarter of ​2026, pending regulatory approvals.

Item 1 of 2 A security guard stands in front of a Pizza Hut fast food restaurant in Abidjan, Ivory Coast October 5, 2024. REUTERS/Luc Gnago/File Photo

[1/2]A security guard stands in front of a Pizza Hut fast food restaurant in Abidjan, Ivory Coast October 5, 2024. REUTERS/Luc Gnago/File Photo Purchase Licensing Rights, opens new tab

LOCAL OPERATORS TAKE CHARGEThe acquisition of the Pizza Hut brand in China by Yum China underscores the company's optimism about the ​chain's future in the world's second-biggest economy, said China-based independent food industry analyst Zhu Danpeng.

"From store expansion to growth in revenue and profit per store, as well as ‌an increase ⁠in its customer fan base, it is evident that after localisation, Yum China has strengthened its core competitiveness for sustainable development," he said.

Yum China, a spinoff of Yum Brands and which counts private equity firm Primavera Capital and Jack Ma's Ant Group as its main backers, has invested in China-specific products such as black truffle Yunnan mushroom pizza, new store formats and more affordable menu items aimed at cost-conscious consumers.

As a result, Pizza Hut has become the ​largest casual dining restaurant brand in ​China. It added 207 net ⁠new stores in the first quarter and plans to expand to more than 6,000 outlets by 2028. Last year, sales for the chain in China increased 4%. Operating profit jumped 19% and its operating profit margin of 7.9% was ​the highest since 2016.

The sale of the China business mirrors a broader trend of U.S. firms handing control ​to local operators to ⁠navigate tougher competition and shifting demand.

General Mills (GIS.N), opens new tab this month agreed to sell its Haagen-Dazs shops in mainland China to a group led by tea chain Ningji, while Starbucks (SBUX.O), opens new tab sold a majority stake in its China operations to Boyu Capital last year.

Yum Brands and Yum China also agreed to financial incentives tied to KFC China's ⁠growth and will ​collaborate on expanding Taco Bell in mainland China.

Shares of Yum Brands, which also announced ​an additional $4 billion share buyback, rose about 2% on Tuesday. Yum China shares slipped 2% in Wednesday Hong Kong trade.

Reporting by Neil J Kanatt and Koyena Das in Bengaluru and by ​Sophie Yu in Beijing and Kane Wu in Hong Kong; Additional reporting by Casey Hall in Shanghai; Editing by Devika Syamnath, Miyoung Kim and Edwina Gibbs

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Kane Wu covers M&A, private equity, venture capital and investment banks in Asia. She tracks the region's most high-profile deals, fundraisings as well as investment trends amidst geopolitical, macroeconomic and regulatory changes. She was nominated for a SOPA Excellence in Business Reporting award for coverage of China regulatory crackdown in 2021. Prior to Reuters, she worked at the Wall Street Journal and also wrote about Asia's loan market for Thomson Reuters Basis Point. She is based in Hong Kong.

Yum Brands announced on Tuesday that it is selling Pizza Hut to private equity firm LongRange Capital for $2.7 billion, completing a strategic review of the iconic pizza chain and enabling the company to focus on faster-growing brands likeTaco Bell and KFC.

The transaction would mark a significant shift for one of America's most recognizable pizza chains and underscores growing consolidation across the restaurant industry as operators navigate slowing consumer demand and higher costs.

Under the transaction, LongRange Capital will acquire Pizza Hut's operations outside mainland China for approximately $1.5 billion, while Yum China will purchase the chain's mainland China business for roughly $1.2 billion.

A Pizza Hut restaurant in New York. (Michael Nagle/Bloomberg via Getty Images)

The deal marks a major reshaping of one of the world's largest restaurant companies. After the sale closes, Yum will focus on KFC, Taco Bell and Habit Burger & Grill and will no longer report Pizza Hut as a separate division.

KFC ADDS NEW MENU ITEMS, UPDATES LOGO AS PART OF GLOBAL BRAND REFRESH

Ticker Security Last Change Change % YUM YUM! BRANDS INC. 157.67 +3.00 +1.94% Pizza Hut generated approximately 12% of Yum's revenue in 2025 but reported declining U.S. comparable sales for 10 consecutive quarters, underscoring the difficulties the brand faced in a highly competitive pizza market.

"This transaction enables Yum! to be a more focused company," CEO Chris Turner said in a statement. "The deal will allow Yum to leverage its scale, technology and talent to drive future growth."

The Pizza Hut logo is seen on a street in Warsaw, Poland, on November 28, 2025. (Klaudia Radecka/NurPhoto via Getty Images)

Yum said it expects to receive about $2.3 billion in net proceeds after taxes, fees and other transaction-related adjustments. The company's board also approved an additional $4 billion share repurchase authorization, signaling that a significant portion of the proceeds could be returned to shareholders.

MAJOR CARL'S JR OPERATOR REPORTEDLY SET TO SHUTTER, SELL DOZENS OF CALIFORNIA LOCATIONS

In China, the deal deepens Yum China's commitment to the business. The company, which already operates KFC and Pizza Hut restaurants in the country, agreed to acquire the mainland China business while also accepting new growth incentives tied to KFC China's future sales performance.

A Pizza Hut is located on Citrus Avenue in Azusa, California, on Monday, April 1, 2024. (Robert Gauthier/Los Angeles Times via Getty Images)

The transaction underscores a broader trend of established restaurant companies reshaping brand portfolios in an effort to improve performance and unlock shareholder value.

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The transactions are expected to close in the third quarter, subject to regulatory approvals and customary closing conditions.

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Yum! Brands Inc (NYSE:YUM) announced on Tuesday that it has entered into definitive agreements to sell Pizza Hut for a combined value of approximately $2.7 billion, as the restaurant operator sharpens its focus on its remaining brands, which include KFC and Taco Bell, and capital allocation priorities.

Under the agreements, private equity firm LongRange Capital will acquire Pizza Hut operations outside Mainland China for about $1.5 billion, while Yum China Holdings (NYSE: YUMC) will purchase Pizza Hut China for approximately $1.2 billion.

The transactions are subject to customary closing conditions and regulatory approvals and are expected to close in the third quarter of 2026.

The sale follows a strategic review of Pizza Hut that began in November 2025. Yum! said its leadership team and board concluded that separate ownership structures would provide the best path for the pizza chain's future growth while maximizing value for shareholders.

“These transactions enable Yum! to be a more focused company that continues to leverage scale, technology and talent to accelerate our raising the B.A.R. priorities and deliver sustained value for our stakeholders,” Yum! CEO Chris Turner said in a statement.

Turner added that Pizza Hut would be positioned for future growth under owners with restaurant industry expertise and described the brand as one of the most iconic restaurant chains in the world.

As part of the transaction with LongRange, Yum! may receive an additional earn-out payment of up to $75 million by 2030. Excluding that potential payment, the company expects to receive approximately $2.3 billion in net proceeds after taxes, closing adjustments and transaction-related fees.

Yum! said it expects to incur about $85 million in one-time expenses during the remainder of 2026 related to separating the business.

The company will continue providing its proprietary Byte by Yum! technology platform to Pizza Hut Ex-China and will also offer certain corporate services under a transition agreement to support the separation process.

Yum! and Yum China said they will maintain their partnership following the transaction. The companies agreed to financial incentives tied to future growth in KFC China's system sales and will continue collaborating on long-term expansion plans for Taco Bell in Mainland China.

Alongside the sale announcement, Yum!'s board authorized an additional $4 billion share repurchase program. The company said the net proceeds from the transactions will be used in line with its capital allocation strategy, including investments in the business and returning excess capital to shareholders.

Yum! plans to provide additional details regarding the financial impact of the sale and any updates to its 2026 outlook during its second-quarter earnings conference call on July 30.

Shares of Yum! traded up 2.5% on the news.

Board of Directors member Thomas Berquist reported the sale of 939 shares of Qualys (QLYS 0.85%) in an open-market transaction on June 12, 2026, as disclosed in a SEC Form 4 filing.

Transaction summaryMetricValueShares sold (direct)939Transaction value~$104,000Post-transaction shares (direct)6,781Post-transaction value (direct ownership)~$751,000Transaction and post-transaction values based on SEC Form 4 reported price ($110.75).

Key questionsHow does this sale compare to Berquist's prior trading activity?
This transaction is the largest of the three open-market sales Berquist has made in the past twelve months, exceeding the previous trades of 656 and 512 shares, with the average sell size over this period at ~702 shares.What proportion of Berquist's holdings does this sale represent?
The sale accounted for 12.16% of his direct holdings at the time, a higher percentage than previous sales, which ranged from 6.22% to 7.38% of his then-current stake.Is there evidence of a pattern or rationale for the timing and size of this transaction?
The increased sale size this period aligns with a reduced share inventory, indicating trade sizes are capacity-driven.How does the transaction value relate to current market conditions?
The shares were sold at $110.75 per share, slightly below the June 12, 2026 market close of $111.24 and 3.4% under the closing price of $114.65 as of June 15, 2026, with the stock down 17.66% over the past year.Company overviewMetricValuePrice (as of market close June 12, 2026)$111.24Market capitalization$4.04 billionRevenue (TTM)$684.86 millionNet income (TTM)$201.43 million* 1-year performance is calculated using June 12, 2026 as the reference date.

Company snapshotQualys delivers cloud-based cybersecurity, IT management, and compliance solutions, including vulnerability management, threat detection, endpoint security, and web application security through the Qualys Cloud Platform.It operates a subscription-based business model, generating recurring revenue from platform access and value-added security applications and services.The company serves a global client base of enterprises, government agencies, and small to medium-sized businesses across sectors such as finance, healthcare, manufacturing, education, and technology.Qualys is a leading provider of integrated cloud security and compliance solutions, supporting organizations in managing and securing their IT assets at scale.

The company's strategy centers on delivering a unified platform that enables real-time vulnerability detection, automated remediation, and comprehensive compliance reporting. Its competitive edge lies in the breadth of its cloud-based offerings, robust analytics, and ability to address evolving cybersecurity needs for a diverse, global clientele.

What this transaction means for investorsThe June 12 sale of Qualys stock by Board of Directors member Thomas Berquist came at a time when shares were down from the 52-week high of $155.47 reached in 2025. Yet the disposition is not a cause for investor concern.

Berquist sold the stock as part of a pre-arranged Rule 10b5-1 trading plan adopted in February of 2026. Such plans are often implemented by insiders to avoid accusations of trading based on insider information. Consequently, this was a non-discretionary transaction, and not a reaction to the fall in share price.

Qualys stock is down due to a few different factors. In the first quarter of this year, a sector-wide sell-off of cybersecurity stocks took place after investors became fearful artificial intelligence could take business away. Moreover, the company issued 2026 guidance of around 8% to 9% sales growth over 2025, which did not impress Wall Street.

That said, Qualys is doing well. Its first-quarter revenue rose 10% year over year to $175.6 million. It announced a new approach to cybersecurity for its platform, one where it will proactively identify security risks so customers can address them before an attack occurs. If the new strategy attracts customers, Qualys could exceed its 2026 forecasted sales growth.

Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Marriott International launches Ask Bonvoy, a new conversational, natural language search experience designed to help Marriott Bonvoy members more intuitively explore the Marriott Bonvoy portfolio of approximately 10,000 properties in 146 countries and territories. Ask Bonvoy is launching in beta and will initially be available in U.S. English on Marriott.com and in the iOS and Android Marriott Bonvoy mobile apps to a subset of Marriott Bonvoy members and users who sign up for Marriott Bonvoy. As part of Marriott's commitment to enhancing the Marriott Bonvoy experience, Ask Bonvoy is designed to make it easier for members to explore stays, amenities and experiences. Over time, Ask Bonvoy will be made available to Marriott's nearly 283 million Marriott Bonvoy members and global travelers who sign up for the Marriott Bonvoy program. , /PRNewswire/ -- Marriott International, Inc. (Nasdaq: MAR) today announced the beta launch of Ask Bonvoy™, a new conversational, natural language search experience designed to help travelers more intuitively discover incredible destinations across the Marriott Bonvoy® portfolio of approximately 10,000 properties in 146 countries and territories. Ask Bonvoy is designed to help travelers search for stays and plan their trips using conversational language, delivering customized results that lead to unforgettable experiences.

Ask Bonvoy

Ask Bonvoy Ask Bonvoy will launch in beta and will initially be available in U.S. English on Marriott.com, and in the iOS and Android Marriott Bonvoy mobile apps to a subset of Marriott Bonvoy members and users who sign up for Marriott Bonvoy. This measured rollout reflects Marriott's commitment to delivering a seamless customer experience, allowing Ask Bonvoy to scale gradually to adjust to real-time feedback and improve performance. A full, global release of the experience is planned for later this year.

"For nearly a century, Marriott has embraced change and been a leading innovator in the industry," said Anthony Capuano, President and CEO, Marriott International. "Ask Bonvoy builds on that legacy, bringing conversational AI to the heart of how travelers explore Marriott's extraordinary global portfolio. Today's beta launch is a powerful example of our continued investment in technology as we aim to make travel planning easier, more intuitive, and more personal."

Powered by Marriott's proprietary AI architecture, Ask Bonvoy interprets a natural language search query, identifies a member's trip purpose, and provides users with relevant and curated results from Marriott's portfolio of thousands of properties around the world. Responses are grounded exclusively in Marriott owned, verified property data rather than open web content, fostering greater reliability for guests looking to understand hotel features and amenities such as dining options, spa experiences and recreational offerings like golf.

"Travelers are increasingly looking for faster, more intuitive ways to search, explore, and plan their trips," said Drew Pinto, Executive Vice President and Chief Revenue & Technology Officer, Marriott International. "Grounded in Marriott's own data and backed by the power of Marriott Bonvoy's portfolio of offerings, Ask Bonvoy is designed to meet travelers in a modern way at every point in their journey, whether they know exactly where and when they'd like to travel or are just beginning their trip discovery. Our measured launch allows us to learn directly from our customers on how they like to search so we can refine and adapt before we scale globally. We are excited to launch Ask Bonvoy as Marriott continues to transform the future of travel." 

Ask Bonvoy is designed to complement the existing search function on Marriott.com and in the Marriott Bonvoy Apps. Members using Ask Bonvoy in beta can continue to search using traditional dates and location filters, while also choosing to explore destinations and properties through more conversational prompts such as travel purpose, location attributes, and desired amenities such as dining, spa and golf options. Once users have identified their stay within the Ask Bonvoy platform, the experience will seamlessly hand off to Marriott's existing booking capabilities to complete reservations. As Marriott continues to refine the Ask Bonvoy experience, the model will support loyalty points-based searches over time.

The launch of Ask Bonvoy is the latest step in Marriott's digital and technology transformation journey. Marriott actively collaborates with numerous tech companies and is partnering with Google on its forthcoming Google AI Mode travel product and with Open AI on its Ad Pilot Program. In 2024, Marriott launched an industry-leading natural language search capability on its Homes & Villas by Marriott Bonvoy platform.

Over time, Marriott plans to make Ask Bonvoy available to its nearly 283 million Marriott Bonvoy members and global travelers who sign up for the Marriott Bonvoy program and book exclusively on Marriott.com and the Marriott Bonvoy Apps.

NOTE ON FORWARD-LOOKING STATEMENTS
This press release contains "forward-looking statements" within the meaning of United States federal securities laws, including statements related to the beta launch of Ask Bonvoy; opportunities to scale and improve Ask Bonvoy performance; the expected full global launch of Ask Bonvoy; the continued evolution of the Ask Bonvoy experience, including as relates to loyalty points-based searches; and similar statements concerning possible future events or expectations that are not historical facts. Marriott cautions you that these statements are not guarantees of future performance and are subject to numerous evolving risks and uncertainties that the company may not be able to accurately predict or assess, including the risk factors that Marriott describes in its U.S. Securities and Exchange Commission filings, including the company's most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q. Any of these factors could cause actual results to differ materially from the expectations we express or imply in this press release. We make these forward-looking statements as of the date of this press release and undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

ABOUT MARRIOTT INTERNATIONAL
Marriott International, Inc. (Nasdaq: MAR) is based in Bethesda, Maryland, USA, and encompasses a portfolio of compelling brands across luxury, premium, select, midscale, extended stay, and all-inclusive, with approximately 10,000 properties in 146 countries and territories, as of June 11, 2026. Marriott franchises, operates, and licenses hotel, residential, timeshare, yacht, outdoor, and other lodging products all around the world. The company offers Marriott Bonvoy®, its highly awarded travel platform. For more information, please visit our website at www.marriott.com, and for the latest company news, visit www.marriottnewscenter.com. In addition, connect with us on Facebook and @MarriottIntl on X and Instagram.

SOURCE Marriott International, Inc.

Special Segment Highlights How Toyota is Tackling Emissions, Energy, and Nature

, /PRNewswire/ -- Toyota Motor North America will be featured in an upcoming episode of Earth with John Holden, airing Sunday, June 21, on Bloomberg Television. The episode showcases Toyota's ongoing commitment to innovative environmental initiatives designed to help create a more sustainable future.

Toyota Motor North America featured on Earth with John Holden. Through the episode, viewers will gain an inside look at Toyota's efforts to support biodiversity such as its integration of environmental stewardship into its operations by creating habitats that support bees, butterflies, and other pollinating species. Each plays a critical role in healthy ecosystems and manufacturing industries, such as food production.

Additionally, the program also highlights Toyota's investment in solar energy and renewable power solutions. Through the expansion of renewable energy projects, Toyota continues its efforts to reduce its environmental footprint while supporting a transition toward cleaner energy sources.

"Toyota is committed to the long-term development of a sustainable society, and we outline our focus areas through the Environmental Challenge 2050," said Tim Hilgeman, Toyota's general manager of environmental sustainability. "One of our main company visions is 'Respect for the Planet,' working toward achieving carbon neutrality in our operations and from the vehicle lifecycle. These projects at Toyota West Virigina and with other companies like Rehlko and Savion help us work toward carbon neutrality and nature stewardship."

The segment shares more about Toyota's Environmental Challenge 2050, the company's long-term strategy, aiming to reduce carbon emissions and help achieve a more sustainable society. Viewers will learn how Toyota offsets operational energy use through working with companies like Savion on virtual power purchase agreements to support large-scale renewable energy projects. The Martin County Solar project is featured in the episode, and the team discusses why it chose to locate it on top of a former coal mine in Kentucky.

The feature also examines Toyota's multi-pathway approach to mobility. This includes the advancement of battery electric vehicles (BEVs), hydrogen fuel cell electric vehicles (FCEVs) and hybrid electric vehicles (HEVs). The team discovered how Toyota and Wisconsin-based, Rehlko, a leader in resilient power generation, are collaborating to develop generators with lower emissions than traditional diesel generators.

In addition, viewers will learn about Toyota's innovative hybrid battery recycling initiative. In working towards recovering valuable materials and extending the lifecycle of critical resources, Toyota is helping advance a circular economy while reducing waste and supporting responsible resource management.

"Toyota recognizes that sustainability requires a comprehensive approach," said John Holden, host of Earth. "This segment demonstrates how the company is addressing environmental challenges through innovation, conservation, renewable energy and next-generation transportation solutions."

Watch Toyota's featured segment on Earth with John Holden airing Sunday, June 21, on Bloomberg Television. Check your local listings for airtime or visit Earth - Discover Our Award-Winning TV Series for more information.

About Earth with John Holden
Earth with John Holden is an award-winning television series that explores the technologies, innovations, and organizations driving environmental progress around the world. The program examines solutions that address critical challenges in sustainability, energy, conservation, transportation and resource management.

About Toyota
Toyota (NYSE:TM) has been a part of the cultural fabric in North America for nearly 70 years, and is committed to advancing sustainable, next-generation mobility through our Toyota and Lexus brands, plus our more than 1,800 dealerships.

Toyota directly employs nearly 64,000 people in North America who have contributed to the design, engineering, and assembly of over 50 million cars and trucks at our 14 manufacturing plants. In 2025, Toyota's plant in North Carolina began to assemble automotive batteries for electrified vehicles.

For more information about Toyota, visit www.ToyotaNewsroom.com. 

SOURCE Toyota

Toyota Motor's incoming CEO Kenta Kon attends a press conference in Tokyo, Japan February 6, 2026. REUTERS/Kim Kyung-Hoon/File Photo Purchase Licensing Rights, opens new tab

CompaniesTOYOTA CITY, Japan, June 17 (Reuters) - Toyota Motor (7203.T), opens new tab shareholders re-elected Akio ​Toyoda as chairman and backed new ‌CEO Kenta Kon as a board member on Tuesday, endorsing the automaker's leadership ​at the first annual meeting ​held during Kon's tenure.

Shareholders also approved ⁠the re-election of four other ​directors.

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The approvals highlight investor support for the ​course set out by the world's top-selling automaker, which has seen hybrid vehicle sales ​grow in markets like the ​U.S. and Japan.

Speaking to reporters after the meeting, ‌Kon ⁠said the company would continue to invest steadily in growth areas such as AI, robotics and its multi-pathway ​strategy ​utilising various ⁠powertrains without "hitting the brakes suddenly".

Kon, who used to work ​as Toyoda's secretary and became ​CEO ⁠in April, formally took his seat on the board.

Former CEO Koji Sato, ⁠now ​vice chairman, stepped down ​from the board.

Reporting by Maki Shiraki; Writing by ​Daniel Leussink; Editing by Edwina Gibbs

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For the past three years, the market has priced a steep regulatory discount into the entire entertainment sector. Investors broadly assumed that Washington regulators would quickly block any horizontal integration that would concentrate too much market share among the legacy Hollywood studios. That foundational assumption completely dissolved this week. The Department of Justice Antitrust Division cleared Paramount Skydance NASDAQ: PSKY to acquire Warner Bros. Discovery NASDAQ: WBD in a massive $110.9 billion all-cash transaction.

By allowing this monumental transaction to proceed without requiring a single asset spin-off or behavioral remedy, federal regulators have signaled open season for massive media consolidation. The decision permanently dismantles the regulatory ceiling that has severely suppressed legacy media valuations for years. Valuing the combined entity at a 7.5 multiple on 2026 EBITDA, this landmark clearance creates an immediate ripple effect across the broader communications and technology sectors.

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The 14% Arbitrage Ticket: Pricing the Final ActThe mechanics of this specific transaction offer a highly lucrative window into how institutional capital prices regulatory risk in real time. Paramount Skydance is officially acquiring Warner Bros. Discovery at a buyout price of $31 per share.

Warner Bros. Discovery Today

WBD

Warner Bros. Discovery

$26.60 -0.23 (-0.86%)

As of 06/16/2026 04:00 PM Eastern

52-Week Range$10.27▼

$30.00Price Target$27.04

Despite the unconditional domestic approval, Warner Bros. Discovery currently trades near $27. That exact pricing disparity creates a highly attractive 14% merger arbitrage spread. In an all-cash buyout scenario, a spread of this magnitude reflects the time value of money and the remaining secondary hurdles the deal must clear before the anticipated third-quarter 2026 closing date.

While domestic clearance is always the heaviest lift for any merger, the transaction still faces international scrutiny. The European Union and the United Kingdom Competition and Markets Authority have strict review deadlines approaching in July and August, respectively. Localized lawsuits from state-level attorneys general remain a peripheral threat that institutional investors must model into their risk profiles. The current 14% spread effectively absorbs these secondary risks, pricing in a high probability of completion while generously rewarding investors willing to park capital through the final closing date.

Big Tech's Binge WatchBeyond the immediate arbitrage opportunity sitting on the table, the Department of Justice decision forces a structural rerating of the entire global streaming hierarchy. Streaming pure-plays currently command massive market premiums over their legacy counterparts. Netflix NASDAQ: NFLX holds a market capitalization exceeding $340 billion, heavily outstripping the combined enterprise values of nearly all legacy studios.

These tech-backed streaming platforms desperately need premium content libraries to maintain subscriber growth, but creating original content from scratch is highly capital-intensive and incredibly speculative. Buying existing distressed media assets is vastly more efficient for a tech giant. Netflix previously validated this strategic imperative with an $82.7 billion cash offer for Warner Bros. Discovery, a highly aggressive bid that ultimately forced Paramount Skydance to the table with its $110.9 billion winning offer to secure the assets.

With the federal government officially greenlighting horizontal integration, distressed media assets trading at fractional price-to-sales ratios are now prime defensive acquisition targets. Paramount Skydance currently trades at just 0.41x sales, while Warner Bros. Discovery trades at 1.83x sales. Cash-rich tech platforms can now weaponize their pristine balance sheets to swallow these deeply discounted content libraries, accelerating a massive wave of defensive acquisitions across the industry.

Curing the Linear Television HangoverTo truly understand why legacy studios are so desperate to merge right now, investors have to look deep into the underlying balance sheets. The painful shift from traditional linear television to direct-to-consumer streaming has triggered severe margin compression across the entire entertainment industry. Building a flawless global streaming infrastructure requires immense upfront capital, while the legacy cable networks that traditionally funded these studios are suffering from rapidly declining subscriber revenues.

Warner Bros. Discovery highlights this exact fundamental friction. Warner Bros. generates an impressive $37.21 billion in annual sales but struggles with profitability, reporting a trailing 12-month earnings-per-share loss of 70 cents and a painful net margin of negative 4.67%. Warner Bros.' balance sheet shows a debt-to-equity ratio of 0.92, a financial hangover from the 2022 merger that originally formed the network. Corporate governance friction remains highly elevated, highlighted by shareholders' recent rejection of Chief Executive Officer David Zaslav's $165 million compensation package for 2025.

Paramount Skydance faces structural headwinds that are incredibly similar. While Paramount Skydance generates $28.89 billion in annual sales and offers a respectable 1.9% dividend yield, the business operates with a negative net margin of 2.08% and a high debt-to-equity ratio of 1.16. Aggressively scaling operations is the only viable path to offset the massive integration and content-acquisition costs inherent to the modern streaming business. By combining physical infrastructure, massive marketing budgets, and legendary intellectual property portfolios, the newly formed media conglomerate aims to restore pricing power and finally stabilize margins.

Institutional Casting CallsOverall MarketRank™94th Percentile

Analyst RatingReduce

Upside/Downside24.0% Upside

Short Interest LevelBearish

Dividend StrengthModerate

News Sentiment0.38 Insider TradingN/A

Proj. Earnings Growth38.18%

See Full Analysis

Institutional investors have already begun aggressively positioning their portfolios for the post-merger landscape. Dimensional Fund Advisors and Bank of America maintain steady equity positions in Warner Bros. Discovery, utilizing the current arbitrage spread as a low-beta accumulation zone while waiting for the deal to finalize. On the other side of the aisle, massive private equity firms like KKR & Company hold strategic positions in Paramount Skydance, signaling high institutional conviction in the newly scaled production model.

Paramount Skydance concurrently carries a surprisingly bearish short interest profile. This elevated short positioning reflects deep-seated market skepticism about the massive debt load the newly combined entity will carry and the sheer complexity of post-merger integration. Extracting the projected financial savings from two massive legacy studio bureaucracies is notoriously difficult. Bearish traders are heavily betting that the integration costs will severely dent free cash flow in the quarters immediately following the close, delaying any meaningful return on investment.

Positioning for the Next Media BlockbusterThe regulatory dam breaking completely transforms the media sector from a distressed value trap into a highly lucrative, catalyst-rich environment. The potent combination of deeply depressed equity valuations, a newly cleared path to regulatory approval, and the looming threat of tech-driven acquisitions creates a highly dynamic setup for proactive investors. Taking a close look at the 14% merger arbitrage spread present in Warner Bros. Discovery offers a compelling short-duration play, while monitoring the broader media ecosystem will help identify the next wave of defensive consolidation before it hits the tape.

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After growing to become one of the largest used car retailers in the U.S., Carvana is expanding into the new vehicle market.

The company has quietly purchased seven new vehicle franchises since last year that primarily sell Stellantis' Chrysler, Dodge, Jeep and Ram brands, including a location in Arizona that has become the automaker's largest volume store in the U.S.

Dealers and industry experts said they believe the move could significantly disrupt, if not reshape, the century-old new vehicle franchised dealer system.

"Carvana entering the new vehicle franchise business may be one of the most disruptive forces that auto retailing has seen in the U.S. market in decades," John Murphy, a longtime Wall Street analyst and automotive consultant, told CNBC.

The U.S. franchised dealership system — which includes 16,990 retailers that topped $1.3 trillion in sales last year, according to the National Automobile Dealers Association — has historically been reluctant to change. However, dealers have grown more adaptable in recent years as a means of survival, including during the pandemic and with the rise of publicly traded dealership groups.

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Carvana's first new car dealership for Stellantis in Casa Grande, Arizona, has grown quickly. It sold more than 700 new vehicles last month, according to Stellantis figures shared with dealers and provided to CNBC.

That made it the bestselling store nationally and compares with an average of roughly 30 to 50 monthly sales the store was doing before Carvana purchasing it early last year, as first reported by The Wall Street Journal.

Carvana and its CEO, Ernie Garcia, have declined to comment about the franchised stores or details of the businesses ahead of a media event this week at which the retailer is expected to disclose its plans.

Carvana: From vending machines to online used car leaderCarvana's locations, many of which feature its signature large car vending machines, have historically acted as delivery and drop-off points where customers can pick up vehicles they purchased online or turn in a vehicle they sell to the company. And up until last year, those vehicles had been used cars, trucks and SUVs that were largely bought from auctions and individual consumers.

Adding the new vehicle business not only provides additional revenue for the company, it opens up other avenues for Carvana to more easily purchase used vehicles from their new vehicle customers and through exclusive auctions only open to franchised dealers.

"That is a significant game changer in the secondary market," Murphy said regarding the private auctions. "If that expands to other brands, that is going to be an advantage."

It also helps Carvana better capitalize on the complete lifecycle of a vehicle. The dealership model is comprised of four main areas of growth: new, used, parts and service, and finance and insurance.

Carvana has previously covered used sales and F&I, including selling consumer auto loans it originates to institutional investors and partner banks, such as Ally Financial, to maintain liquidity. Adding the new franchises is expected to bring Carvana into the other areas as well. 

"After stabilizing their core business, I think they realized, by looking at the franchise model, that there was a significant amount of revenue and gross profit opportunity that their business model didn't even contemplate," said Brian Gordon, president of dealer advisor and broker Dave Cantin Group.

Dealers adapt or 'be irrelevant' Despite Carvana's current status, which includes a market cap of more than $70 billion, significantly higher than that of Stellantis, there are challenges to selling new cars compared with used. 

Unlike used vehicles, which Carvana has specialized in selling online, the sales of new vehicles are more regulated state by state. The franchised owners also act as a business partner to most automakers operating in the U.S.

In some states, such as Michigan, the only way to legally purchase a new vehicle is through a franchised dealer — something direct-to-consumer companies such as Tesla and Rivian have battled with varying results.

An annual study by Cox Automotive, which supports franchised auto dealers, found that most buyers don't want an all-online purchase or a fully in-person transaction. They want a blend of online convenience with in-store interaction.

Franchised dealers also must adhere to far more regulations and rules from the automakers. They range from showroom layouts and what brands they can sell at certain stores to automaker-defined allocations of vehicles and service and repair requirements, which Carvana does not currently offer for customers.

Not all are mandates, but many automakers incentivize retailers through vehicle allocation as well as financial incentives for offering such services and meeting their requirements.

Carvana is already operating a bit differently though than most dealers, as Stellantis has approved it as a certified website provider for the automaker, which means it doesn't need to go through an approved third-party company, according to four people familiar with the decision, who requested anonymity to speak about matters that have not been made public.

"It's bred out of desperation," said a Stellantis dealer who asked for anonymity to be able to speak freely about the automaker, which has drastically lost U.S. market share in recent years. "It's given Carvana an opportunity to come into the new car space."

Stellantis, in an statement to CNBC, said Carvana operates as a "corporate owner" of its brands, similar to other large publicly traded companies such as Lithia and AutoNation.

"We apply the same consistent standards and criteria to all dealer partners, and any organization that meets our qualifications is eligible to operate as a franchisee," the company said, adding that Stellantis "certifies tools and services that will enhance our program and be beneficial to our network. All certified providers must complete a rigorous onboarding process and meet program standards and requirement."

Carvana's foray into new vehicles and its rapid growth have been a discussion between Stellantis' current dealers and the company, according to Stellantis National Dealer Council Chairman Sean Hogan.

He said competition is always good for the consumer, which is why the franchised dealer model was created, but there are a lot of outstanding questions about Carvana's new vehicle strategy.

"I'm curious to see what their strategy is and, in the long run, I think competition is good. So, if they're doing something better than we are, then we will need to adapt, or we're going to be irrelevant," said Hogan, vice president of Sierra Auto Group in California.

In JD Power's annual U.S. Sales Satisfaction Index for franchised dealers that ranks purchase experiences, three out of four of Stellantis' main brands — Chrysler, Dodge and Ram — were under the industry average.

An Amazon of used and new vehicles? Although Stellantis said it is treating it like other dealers, Carvana is not a traditional auto retailer like other large publicly traded dealers such as Lithia or AutoNation. It almost exclusively operates online, with a vast network of physical facilities supporting it.

Carvana has built a nationwide logistics and processing company for vehicles similar to Amazon and its back-end operations for processing and shipping consumer goods.

"They have a pre-built out infrastructure, digitally, physically, logistically, that probably gives them an advantage over those big, multibranded public companies," said Larry Dominique, a longtime automotive executive turned industry consultant.

The business concept of Carvana is simple: buy and sell used cars. But the process behind it has proven to be complicated, labor-intensive and expensive.

Carvana puts each vehicle it intends to sell through a lengthy inspection, repair and sale preparation process. It ranges from fixing scratches, dents and other imperfections to working on engine and powertrain components. There are also significant logistical costs and processes for delivering vehicles to consumers' homes.

The other new vehicle Stellantis franchises for Carvana are in Sacramento and San Diego, California; Dallas; Atlanta; Cleveland; and Boston. The new dealerships are in addition to more than 100 other Carvana locations, mainly consisting of vending machines and processing centers.

While large dealers have stores across the country that they can utilize for used and new vehicle inventories, they have traditionally sold regionally to avoid additional shipping costs as well as sales and registration complexities due to selling across state lines.

"Carvana is showing the franchise dealer community how the power of digital can be applied to make a future direction retail model," Dominique said. "There's nothing stopping any dealer in the United States from doing that today."

The company's vending machine locations do not have parts and service departments, like traditional franchised dealers have, which represent significant profits and customer touch points. That's one of the main questions surrounding Carvana's plans: Will it expand into parts and services or leave that for current dealers?

"If they're going to just be an outlet for new cars, then does that change the dynamic of the dealership model? Who's going to be responsible for taking care of the customer after the sale?" Hogan said.

Murphy said he believes Carvana may be able to use locations of Adesa, an auction company it purchased in 2022, in addition to the new dealer franchises to potentially service its vehicles.

Carvana has reported it has the capacity to recondition approximately 1.5 million vehicles per year. That compares with its sales of less than 600,000 vehicles last year.

"They do have tremendous capacity to recondition, potentially significantly ramp up their service capability in a way that is not present in other large consolidators," Murphy said. "I think that problem potentially gets cured."

Marley Kayden talks about SpaceX (SPCX) extending its post IPO rally and continuing gains throughout the trading day. She also discusses falling oil prices and Carvana's (CVNA) expansion into a new car market.