In the latest trading session, Apple (AAPL - Free Report) closed at $333.26, marking a +1.76% move from the previous day. This change outpaced the S&P 500's 0.51% loss on the day. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 1.47%.
Prior to today's trading, shares of the maker of iPhones, iPads and other products had gained 10.66% outpaced the Computer and Technology sector's loss of 2.99% and the S&P 500's gain of 0.53%.
Investors will be eagerly watching for the performance of Apple in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 30, 2026. The company is forecasted to report an EPS of $1.88, showcasing a 19.75% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $108.79 billion, up 15.69% from the year-ago period.
AAPL's full-year Zacks Consensus Estimates are calling for earnings of $8.76 per share and revenue of $479.03 billion. These results would represent year-over-year changes of +17.43% and +15.11%, respectively.
Investors might also notice recent changes to analyst estimates for Apple. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 0.05% higher. Apple currently has a Zacks Rank of #3 (Hold).
In terms of valuation, Apple is currently trading at a Forward P/E ratio of 37.39. This indicates a premium in contrast to its industry's Forward P/E of 21.98.
Meanwhile, AAPL's PEG ratio is currently 2.84. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The average PEG ratio for the Computer - Micro Computers industry stood at 2.84 at the close of the market yesterday.
The Computer - Micro Computers industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 18, this industry ranks in the top 8% of all industries, numbering over 250.
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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Warren Buffett stepped down as CEO of Berkshire Hathaway (BRKB +0.98%)(BRKA +0.73%) at the end of 2025, but he still speaks out on some of the conglomerate's investments. And in a CNBC interview on Wednesday, he made clear that his view of Apple (AAPL +1.72%) hasn't budged. It remains one of his favorite businesses, he said, even with a change at the top just weeks away.
That change is no small thing. Apple announced in April that longtime CEO Tim Cook will become executive chairman on Sept. 1, handing the chief executive job to hardware engineering chief John Ternus. A leadership handoff at one of the world's most valuable companies would normally give investors pause.
Buffett, whose Berkshire owns more than $70 billion in Apple stock, doesn't seem worried.
So does his continued conviction make the stock a buy near its record high? Let's take a look.
Image source: The Motley Fool.
A business Buffett knows well Buffett first bought Apple in 2016, and it has grown into Berkshire's single biggest position. It accounts for about 22% of the conglomerate's roughly $263 billion equity portfolio, according to its most recent quarterly filing, making it Berkshire's largest holding by a wide margin.
More telling still, Berkshire left the stake untouched in the first quarter, its first full period under new CEO Greg Abel. After years of steady trimming, standing pat amounts to a quiet vote of confidence.
Part of Buffett's ease with the succession may be that Apple's staying power doesn't rest on any one executive. Ternus has been at the company since 2001 and has run hardware engineering through the iPhone's most important years.
And the numbers he inherits are strong. In its fiscal second quarter (the period ended March 28, 2026), Apple's revenue rose 17% year over year to $111.2 billion, and earnings per share climbed 22% to $2.01. Both were March-quarter records.
iPhone revenue jumped 22% to a record $57 billion, powered by demand for the iPhone 17 lineup. Services revenue, meanwhile, hit an all-time high of about $31 billion, up roughly 16% year over year.
That services business is the quiet engine here, and it's the piece I'd watch most. It carries a gross margin near 75%, against about 39% for products, so as it outgrows the rest of the company, it steadily lifts Apple's overall profitability.
Zoom out, and the trajectory is the real story. Apple's revenue grew just 6% in fiscal 2025, then accelerated to that 17% pace in the March quarter. Management has guided for 14% to 17% growth again in the current quarter, which Apple will report later this month.
After several sluggish years, in other words, this is a business reaccelerating. That helps explain why Buffett is content to leave it as Berkshire's anchor holding through a CEO change.
Today's Change
(
1.72
%) $
5.63
Current Price
$
333.13
The price of that conviction But is the stock overvalued?
Apple stock climbed about 4% on Wednesday to roughly $328, a fresh record, and it is up more than 55% over the past year, well ahead of the S&P 500. At that price, shares trade at close to 40 times earnings -- a steep premium to the broader market's roughly 25. Even on next year's expected profits, the multiple eases only to the mid-30s.
But I think Apple stock is worth its premium.
Not only is the business accelerating, but it's also built on an enduring, proven brand and a loyal customer base. Then there's the potential for AI to further accelerate both its products and services businesses, as it gives customers reasons to upgrade and potentially opens the door to entirely new product categories.
Additionally, Buffett's conviction is worth taking seriously. Not only is he a renowned investor, but he's putting his money where his mouth is -- and he hasn't sold any Apple shares this year.
So, is Apple a buy up here? I think so.
Sure, there are risks. But I agree with Buffett on this one. Apple is a stock worth owning. With that said, it's worth being clear that Berkshire hasn't been buying Apple stock at this level -- least not that we know of. So it's not fair to say that Buffett thinks Apple stock is a buy. But he certainly likes owning it -- and he likes owning a lot of it. Further, Berkshire's position size is arguably already borderline oversized, so it makes sense he isn't adding.
Image Credits:Gabby Jones / Bloomberg / Getty Images U.S. beverage maker Coca-Cola said one of its dairy subsidiaries was hacked and that it’s shutting down its operations for the foreseeable future. The multinational giant said in a disclosure with the U.S. Securities and Exchange Commission that its Fairlife dairy company was hit by ransomware and that its production systems are affected. The company said that its Fairlife production operations across the United States are “temporarily suspended.”
Fairlife’s operations in Canada are unaffected.
Coca-Cola is one of the largest companies in the world, with products spanning carbonated drinks, water, and dairy products. Its Fairlife dairy is one of the company’s major brands, with an estimated $4 billion in sales by 2024.
Ransomware attacks on food and beverage companies can have lasting effects. Past incidents at Arizona Beverages in 2019 and food distributor giant UNFI last year resulted in weeks-long disruptions to their respective production lines and empty grocery shelves.
Coca-Cola didn’t say when Fairlife’s systems would be restored.
Do you know about the cyberattack at Fairlife? Do you work at the company? We would love to hear from you. From a non-work device, you can securely contact Zack Whittaker on the Signal messaging app with the username zackwhittaker.1337.
In the latest trading session, Coca-Cola (KO - Free Report) closed at $84.92, marking a +3% move from the previous day. The stock outperformed the S&P 500, which registered a daily loss of 0.51%. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 1.47%.
Shares of the world's largest beverage maker witnessed a gain of 3.15% over the previous month, beating the performance of the Consumer Staples sector with its loss of 0.9%, and the S&P 500's gain of 0.53%.
The investment community will be closely monitoring the performance of Coca-Cola in its forthcoming earnings report. The company is scheduled to release its earnings on July 28, 2026. It is anticipated that the company will report an EPS of $0.92, marking a 5.75% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $13.05 billion, showing a 4.15% escalation compared to the year-ago quarter.
For the full year, the Zacks Consensus Estimates are projecting earnings of $3.26 per share and revenue of $49.31 billion, which would represent changes of +8.67% and +2.96%, respectively, from the prior year.
Investors should also take note of any recent adjustments to analyst estimates for Coca-Cola. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Coca-Cola is currently sporting a Zacks Rank of #3 (Hold).
In the context of valuation, Coca-Cola is at present trading with a Forward P/E ratio of 25.28. This represents a premium compared to its industry average Forward P/E of 20.4.
One should further note that KO currently holds a PEG ratio of 3.29. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. Beverages - Soft drinks stocks are, on average, holding a PEG ratio of 2.21 based on yesterday's closing prices.
The Beverages - Soft drinks industry is part of the Consumer Staples sector. This industry, currently bearing a Zacks Industry Rank of 93, finds itself in the top 38% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
Coca-Cola (KO +3.00%) is due to report its second-quarter earnings on the morning of July 28. There are a few good reasons investors should consider buying the stock in advance, even though it recently hit an all-time high. Let's have a look.
Today's Change
(
3.00
%) $
2.47
Current Price
$
84.92
The beverage company has exceeded earnings expectations for four consecutive quarters, and while Coca-Cola isn't shattering any growth records, it remains consistent.
Coca-Cola investors are also rewarded on the income side. The company has raised its dividend for 64 consecutive years, making it a true Dividend King -- a company that has raised its dividend for at least 50 consecutive years. Right now, the stock is yielding about 2.5%. The company currently pays $0.53 per share quarterly.
Coca-Cola is an asset-light company, which helps it maintain strong free cash flow. The company reported nearly $2 billion in free cash flow last quarter.
Image source: Getty Images.
Risks to consider Coca-Cola is not immune to inflation and tariffs, and rising costs have a real impact.
The stock also trades at a premium to many peers, with its current forward P/E ratio at about 25. The stock has risen more than 18% year to date as of this writing.
What to watch on July 28 Still, Coca-Cola remains a steadfast behemoth with excellent fundamentals. With a new CEO at the helm this year, Coca-Cola is focusing on innovation and technology to further drive growth.
There may be some short-term volatility due to macroeconomic conditions, but buying Coca-Cola ahead of its next earnings release and holding for years remains a good move for those who like a steady ship that delivers reliable income.
Catie Hogan has positions in Coca-Cola. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Alphabet’s stock falls as Gemini delays suggest Google is struggling to keep up in the AI race
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HomeIndustriesInternet/Online ServicesTech StocksTech StocksMeanwhile, several rivals have launched their latest and greatest AI modelsJuly 16, 2026, 5:32 p.m. ET
Alphabet shares fell more than 4% on Thursday, reflecting concerns that the Google parent company is falling further behind in the artificial-intelligence race.
Google’s Gemini 3.5 Pro, its most powerful AI model to date, is months behind schedule because of the company’s work to try and boost its performance, according to Bloomberg. In early June, CEO Sundar Pichai said the model was expected to be launched later that month, but it still has not yet been released.
About the Author
William Gavin is a tech reporter for MarketWatch. He is based in New York.
LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz announces an investigation of Alphabet Inc. (“Alphabet” or the “Company”) (NASDAQ: GOOG) on behalf of investors concerning the Company's possible violations of federal securities laws.IF YOU ARE AN INVESTOR WHO LOST MONEY ON ALPHABET INC. (GOOG), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING A CLAIM TO RECOVER YOUR LOSS.What Is The Investigation About?On July 16, 2026, Bloomberg news reported that Alphabet's Google is “months behi.
Google is months behind schedule on delivering its most powerful artificial intelligence (AI) model, Gemini 3.5 Pro, Bloomberg reported Thursday (July 16), citing unnamed sources.
The company was widely expected to release 3.5 Pro at its developer conference in May, but it is still working to improve the model’s capabilities, especially in coding, according to the report.
Google said in a May 19 blog post announcing the launch of Gemini 3.5 Flash: “We’re also hard at work on 3.5 Pro. It’s already being used internally, and we look forward to rolling it out next month.”
According to the Bloomberg report, the delay has been caused in part by Google’s many layers of stakeholders involved in preparing models for release, the company’s efforts to make the 3.5 Pro’s skills in writing code more competitive with its rivals, and competing factions within Google each building their own AI coding tools.
Asked about the report by Bloomberg, a Google spokesperson said, per the report: “We’re shipping quickly across a wide range of models while keeping them highly cost-effective for customers.”
Google is also working with the U.S. government and its efforts to monitor the most advanced models, according to the report.
“We’re currently testing 3.5 Pro, an upgraded Flash model, and other models with partners, and we’re productively engaged with the U.S. government on model testing and broader frameworks,” the Google spokesperson said, per the report.
PYMNTS reported in May that Gemini 3.5 Flash had become the default model across the Gemini app and Search’s AI Mode; that the Gemini app was serving more than 900 million monthly users across 230 countries; and that daily queries had grown sevenfold.
In remarks delivered at a Google event in May, Google CEO Sundar Pichai said: “Today we have 13 products with over a billion users each. Five of those have more than 3 billion users. Our Gemini models are a big reason more people are using our products, and why they’re using our products more.”
Speaking of the company’s latest AI models, Pichai said: “Gemini 3.5 Flash is available for everyone today across our products and APIs. We’re also excited for Gemini 3.5 Pro. We are using it internally, it’s showing great improvements, and it will be coming next month.”
For all PYMNTS AI and digital transformation coverage, subscribe to the daily AI and Digital Transformation Newsletters.
Amazon (AMZN 1.92%) brought in a jaw-dropping $182 billion in revenue in the first three months of 2026. While the majority of this sum came from its retail operations, the market undoubtedly spends more time focused on the company's cloud division, Amazon Web Services (AWS).
This isn't surprising. AWS posted a 28% year-over-year revenue gain in Q1, its fastest growth pace in more than three years. And AWS' operating income accounts for 59% of the overall company's total. These are impressive trends.
But investors should take a deeper look at the AWS growth story.
Image source: Amazon.
Double-click on the backlog metric Andy Jassy, who has been CEO of Amazon since taking over from founder Jeff Bezos in July 2021, highlighted the huge opportunity that the cloud segment is facing. As he wrote in his 2025 shareholder letter, "85% of global IT spend remains on-premises."
In recent years, the artificial intelligence (AI) market has taken a central position in the financial picture. "Our AI revenue is growing triple digits year over year," Chief Financial Officer Brian T. Olsavsky said on the Q1 earnings call. It's hard not to be bullish about the company after reading this.
The market places a lot of attention on a single metric for cloud computing leaders like Amazon: backlog, which indicates contracted (but not yet delivered) demand from customers. AWS had a $364 billion backlog as of March 31, up 49% from three months before.
And that figure didn't include the 10-year $100 billion deal with Anthropic signed in April. But it did include OpenAI's $138 billion spending commitment over the next eight years. These are the two most prominent AI labs out there, and both are weighing initial public offerings that would value the companies at more than $1 trillion.
The outlook for AWS is highly reliant on the ability of these two start-ups to fulfill their spending commitments. This puts its backlog on shakier ground.
As of May, Anthropic and OpenAI had a combined annualized revenue run rate of $72 billion. Their total yearly spending commitment to AWS of about $27 billion amounts to 38% of this sales figure. This isn't a cause for concern at first glance.
However, this doesn't count their spending obligations with other cloud providers, measured in the hundreds of billions of dollars. It also excludes operating expenses and the need to eventually produce a profit. There is tremendous uncertainty in the coming years, all dependent upon the ability of Anthropic and OpenAI to register skyrocketing revenues and build durable business models.
Amazon
Today's Change
(
-1.92
%) $
-4.90
Current Price
$
250.06
Say goodbye to free cash flow Amazon has said it will lay out $200 billion on capital expenditures this year, up 52% compared to 2025. The company will burn $11 billion in free cash flow in 2026, according to analysts' consensus estimates. Investors have to get used to this new financial reality.
On a positive note, Amazon has historically excelled at choosing where to invest with an eye toward the long term. Additionally, the sizable investments it's making could also benefit the overall business. The online marketplace, logistics network, Prime Video, and advertising segment, for example, are all leveraging its expanded AI capabilities.
Amazon (AMZN - Free Report) closed the most recent trading day at $249.89, moving -1.99% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.51%. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 1.47%.
The online retailer's stock has climbed by 7.35% in the past month, exceeding the Retail-Wholesale sector's gain of 0.51% and the S&P 500's gain of 0.53%.
Analysts and investors alike will be keeping a close eye on the performance of Amazon in its upcoming earnings disclosure. The company is predicted to post an EPS of $1.82, indicating a 8.33% growth compared to the equivalent quarter last year. Simultaneously, our latest consensus estimate expects the revenue to be $196.9 billion, showing a 17.41% escalation compared to the year-ago quarter.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.86 per share and a revenue of $826.06 billion, indicating changes of +23.57% and +15.22%, respectively, from the former year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Amazon. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, there's been a 0.39% rise in the Zacks Consensus EPS estimate. Currently, Amazon is carrying a Zacks Rank of #2 (Buy).
In terms of valuation, Amazon is currently trading at a Forward P/E ratio of 28.76. Its industry sports an average Forward P/E of 17.09, so one might conclude that Amazon is trading at a premium comparatively.
It is also worth noting that AMZN currently has a PEG ratio of 1.66. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Internet - Commerce industry stood at 1.09 at the close of the market yesterday.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry, currently bearing a Zacks Industry Rank of 170, finds itself in the bottom 31% echelons of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of common stock of Microsoft Corporation (NASDAQ: MSFT) between May 1, 2025 and January 28, 2026, inclusive (the “Class Period”), of the important August 11, 2026 lead plaintiff deadline.
SO WHAT: If you purchased Microsoft common stock during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 11, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.
DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) Microsoft’s Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) Microsoft’s flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit (“GPU”) and central processing unit (“CPU”) capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related research and development (“R&D”); and (4) as a result, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft’s Copilot offerings had lost market share to rival products, a trend that was increasing. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Microsoft class action, go to https://rosenlegal.com/cases/microsoft-corporation/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor’s ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.
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Microsoft CEO Satya Nadella told employees Wednesday that Anthropic's limits on requests that users submit to the startup's high-end Fable artificial intelligence model don't make sense.
The comments come as executives express interest in cost-efficient models that don't come from the most well funded labs but can handle software development and other tasks inside companies. On Thursday Chinese startup Moonshot AI announced an open-source model that it said surpasses recent releases from Anthropic and OpenAI.
"If you use Fable, when it refuses for any random thing, it just is like, when was the last time you had a creation tool that was so editorially controlled?" Nadella told engineers working on Microsoft's Copilot AI software, according to a copy of his remarks that was provided to CNBC. "It doesn't make sense."
Microsoft declined to comment. An Anthropic spokesperson did not immediately respond to a request for comment.
When end users ask Fable about some aspects of creating large-scale models, among other topics, Anthropic might send responses from an older version, according to a support page. Some people have called out the rejections on social media.
Anthropic said when it announced Fable 5 in early June that it was attempting to reduce false positives for blocked requests. Three days after the introduction, Anthropic cut off Fable access to comply with a U.S. government export control directive, and on July 1 the company restored the model, saying "the new safeguards will flag a slightly higher fraction of harmless requests than the previous Fable safeguards."
The Microsoft chief's remarks represent criticism of a valued partner and client. Anthropic's Claude Code software development tool has become popular among programmers and people with less technical talent. In November Microsoft said it was making a $5 billion investment in Anthropic, as the startup agreed to spend $30 billion on Microsoft's Azure cloud. This year Microsoft unveiled Copilot Cowork, a business productivity assistant that draws on the startup's models.
Investors have worried that Microsoft could face disruption from models that quickly write software, as the company allocates tens of billions per quarter to data center expansion. Shares have fallen 17% so far this year, while the Nasdaq Composite index has gained 11%.
Lately Nadella has argued that companies should be able to cost-efficiently develop custom models and draw on internal data, without letting it flow out to other entities, such as companies in the business of building models. In a Sunday blog post, he invoked Palantir CEO Alex Karp, who said on CNBC that technical organizations "want to know they own the means of production."
Microsoft offers the Foundry service where developers can adopt over 11,000 models, including some from Anthropic and OpenAI.
"It can't be that there are only two companies in the world with token capital, and everybody else is renting it," Nadella told the engineers. "It makes no economic sense." Tokens measure computing usage of AI models.
Microsoft tied itself tightly to OpenAI through a series of investments, but the two companies drifted and became competing with each other after the abrupt 2023 ousting and reinstatement of OpenAI's CEO, Sam Altman, with little notice to Nadella.
OpenAI said in April it would bring its models beyond Azure to cloud infrastructure leader Amazon Web Services. Microsoft, for its part, announced a series of in-house models, including one for coding, in June. Its stake in OpenAI's for-profit business was worth $135 billion as of October.
Nadella also said it's good Microsoft is merging products for consumer and corporate workers. In March, he announced that former Snap executive Jacob Andreou would take charge of Copilot across both categories.
The unification is something "we should have done maybe day one," he said. In April Microsoft said it had over 20 million paid seats for the work-centric Copilot, or 4% of the cloud-based Office customer base.
WATCH: We see Microsoft accelerating growth in next few years, says Wolfe's Zukin
AMD weekly chart shows recent failed breakout of rising channel and drop back into channel. Source: TradingView Bounce Potential Meets Overhead Resistance An upside target for a bounce is near the 20-day moving average around $533.67 and the lower channel boundary. Traders will be watching for signs of resistance followed by weakness, to consider short positions given the potential for further downside. Of course, a sustained advance above the 20-day moving average would be a sign of strengthening rather than weakening. A recovery above that level would begin to challenge the bearish setup and suggest that the breakdown may have been a temporary shakeout.
Longer-Term Support Zone Comes into View There is a confluence zone near the 50% retracement zone of the prior advance at $386.05, which defines a key lower target zone. It is joined by a higher swing low and the bottom of the rising channel at $393.36. The 20-week moving average is now nearby at $385.59. If the current weakness develops into a deeper correction, this area becomes an important longer-term test of whether AMD’s broader uptrend remains intact.
If you’d like to know more about technical analysis and how traders use it, please visit our educational area.
WHY: Rosen Law Firm, a global investor rights law firm, announces an investigation of potential securities claims on behalf of shareholders of Alibaba Group Holding Limited (NYSE: BABA) resulting from allegations that Alibaba may have issued materially misleading business information to the investing public.
SO WHAT: If you purchased Alibaba securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. The Rosen Law Firm is preparing a class action seeking recovery of investor losses.
WHAT TO DO NEXT: To join the prospective class action, go to https://rosenlegal.com/cases/alibaba-group-holding-limited/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
WHAT IS THIS ABOUT: On June 24, 2026, Financial Times published an article entitled "Anthropic accuses Alibaba of obtaining illicit access to Claude". The article stated that Anthropic has "accused Chinese ecommerce giant Alibaba of obtaining illicit access to Claude by creating fake accounts designed to access the AI model which the American company does not offer to Chinese groups."
On this news, Alibaba American Depositary Shares ("ADS") fell 2.7% on June 24, 2026.
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Boeing (BA 1.73%) delivered 64 commercial airplanes in June, bringing its second-quarter total to 171 jets and its first-half total to 314 -- the company's best first half since 2018. For a plane maker still working its way back to consistent profitability, that delivery pace is the single most important input into the second-quarter results Boeing will report on Tuesday, July 28.
Deliveries matter this much because of how Boeing gets paid. The company collects the bulk of an airplane's purchase price when it hands the jet to the customer, so every additional delivery brings in more cash.
The second quarter's 171 commercial deliveries included 129 737s and 25 787s. And output has been climbing for more than a year. Boeing delivered 130 airplanes in the first quarter of 2025, 143 in this year's first quarter, and now 171 in the second quarter.
Image source: Boeing.
The trend investors should care about Boeing's first-quarter report showed why the ramp matters. Revenue rose 14% year over year to $22.2 billion.
The company's core (non-GAAP) loss per share narrowed to $0.20 from $0.49 a year earlier. And free cash flow, while still negative at $1.5 billion, was an improvement from a $2.3 billion outflow in the year-ago quarter.
Losses shrinking and cash flow improving, quarter after quarter, is the entire investment story here -- and it runs on deliveries.
The second quarter added 28 more deliveries than the first. If Boeing's per-plane economics held steady, that higher volume should translate into a smaller loss and better cash flow when the company reports.
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Investors should also listen for any word on production rates. Boeing has been ramping up its 737 production to 47 jets per month, up from 42, with the concurrence of the Federal Aviation Administration. That higher rate raises the delivery ceiling for 2027 and beyond.
There's a backlog reason to care, too. Boeing ended the first quarter with a record $695 billion in total backlog, including more than 6,100 commercial airplanes. The company doesn't have a demand problem. It has a production problem, which is why every month of higher output works directly on the constraint that has been holding the business back.
Of course, a good report isn't guaranteed. Tariffs, supplier issues, or new charges on defense programs could still spoil the quarter, as such charges have in years past. But the delivery data is the best preview investors get ahead of the report, and it points in one direction.
Free cash flow is where the delivery ramp either shows up or doesn't. If Boeing posts a positive figure on July 28, its recovery story gets its proof.
Boeing (BA - Free Report) closed at $214.34 in the latest trading session, marking a -1.73% move from the prior day. The stock's change was less than the S&P 500's daily loss of 0.51%. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 1.47%.
The airplane builder's shares have seen a decrease of 3.33% over the last month, not keeping up with the Aerospace sector's loss of 2.93% and the S&P 500's gain of 0.53%.
The investment community will be paying close attention to the earnings performance of Boeing in its upcoming release. The company is slated to reveal its earnings on July 28, 2026. It is anticipated that the company will report an EPS of -$0.29, marking a 76.61% rise compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $23.96 billion, up 5.31% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$0.27 per share and a revenue of $96.83 billion, representing changes of +97.46% and +8.23%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Boeing. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the past month, there's been a 43.25% fall in the Zacks Consensus EPS estimate. Currently, Boeing is carrying a Zacks Rank of #3 (Hold).
The Aerospace - Defense industry is part of the Aerospace sector. At present, this industry carries a Zacks Industry Rank of 100, placing it within the top 41% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
The U.S. National Transportation Safety Board said Thursday it will lead the investigation into an incident in which a passenger was partly sucked out of a Ryanair Boeing 737's broken window over Greece last week.
On July 16, 2026, Nike Inc NKE shares rose 4.2% to a current price of $44.57. Despite today's positive movement, the stock has experienced significant volatility, as it has a 52-week range between $40.00 and $80.17.
GF Value™ verdict: Current price of $44.57 is 40.5% below the GF Value™ of $74.93.GF Score™ of 70/100 indicates an above-average rating, suggesting potential for long-term returns.Most notable signal: Insider activity shows that insiders have sold $0.8M in shares over the last three months with no buying activity. Is NKE Overvalued or Undervalued? The current price of Nike Inc NKE shares at $44.57 suggests that the stock is undervalued when compared to the GF Value™ of $74.93. This represents a margin of safety of approximately 40.5%, indicating that there is a significant upside potential if Nike can navigate its current challenges effectively. However, the GF Valuation label suggests that it is a possible value trap, urging caution. While the undervaluation presents an opportunity, potential investors should consider the risks involved, particularly given the recent downward trends in share price over the past year.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.
How Does NKE's Valuation Compare to Its History? MetricCurrentHistorical P/E (TTM)21.3x30.9x (5-Year Median) Forward P/E25.7x - Nike's current P/E ratio of 21.3x is significantly below its 5-year median of 30.9x, indicating that the stock is trading at a discount relative to its historical valuation. This P/E analysis agrees with the GF Value™ verdict of being undervalued, reinforcing the perspective that the stock may offer an attractive entry point for those willing to accept the associated risks.
What Does NKE's GF Score™ Tell Us? MetricRating GF Score™70/100 Financial Strength5/10 Profitability8/10 Growth6/10 Valuation4/10 Momentum2/10 The GF Score™ of 70/100 suggests that Nike Inc has a solid overall performance, particularly in profitability, where it scored 8/10. However, the score in momentum is relatively weak at 2/10, indicating recent struggles in maintaining a positive price trend. The scores highlight the need for caution, as while the profitability is strong, the lower scores in momentum and valuation could suggest challenges in achieving consistent growth moving forward.
What Are Insiders Doing with NKE Stock? Insider activity for Nike Inc has shown a trend of selling, with insiders selling $0.8M in shares over the last three months and no reported buying activity. This pattern may suggest a lack of confidence among insiders regarding the stock's near-term performance. Such selling can be a red flag for potential investors, as it may indicate that those closest to the company perceive challenges ahead.
What This Means for Investors Based on the GF Value™ analysis, Nike Inc NKE appears to be undervalued with a current price of $44.57 compared to a GF Value™ of $74.93. However, caution is advised due to the stock's historical performance and insider selling activity. Investors may find opportunity, but should weigh it against potential risks.
For the complete analysis, visit the Nike Inc NKE stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is NKE's GF Score™?
NKE has a GF Score™ of 70/100, indicating an above-average rating that suggests potential for long-term returns based on its performance metrics.
Is NKE overvalued or undervalued?
NKE is currently undervalued, with a GF Value™ of $74.93, representing a 40.5% upside potential from its current price.
What is NKE's P/E ratio?
NKE's P/E ratio is currently 21.3x, which is significantly below its 5-year median of 30.9x, indicating that the stock is trading at a discount relative to its historical valuation.
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].
PANews July 17 news, according to Shenwang Tencent News, the issuance announcement for Changxin Technology’s initial public offering shows that national-level long-term capital such as social security funds and basic pension insurance funds, along with leading upstream and downstream industry players and large insurance funds, participated in the strategic placement. Shenzhen Sankuai Network Technology Co., Ltd., NIO Power Technology (Hefei) Co., Ltd., ZTE Corporation, Chery Intelligent Automotive Technology (Hefei) Co., Ltd., and others were allocated an amount of RMB 157,999,993.98, with a lock-up period of 18 months; Hangzhou Alibaba Cloud Feitian Information Technology Co., Ltd. was allocated an amount of RMB 157,999,993.98, with a lock-up period of 36 months.
High-Flyer Quant participated in this offline IPO subscription at a proposed subscription price of RMB 8.78 per share, with a maximum proposed subscription quantity of 230 million shares per offline bid. Most of High-Flyer’s products placed bids in the range of 70 million to 140 million shares. High-Flyer Quant primarily consists of two entities: Zhejiang Jiuzhang and Ningbo High-Flyer Quant. Both are registered with the Asset Management Association of China, and the actual controller of both is Liang Wenfeng, who holds an 85% stake in Jiuzhang Asset and an 85.15% stake in Ningbo High-Flyer Quant.
Netflix forecast third-quarter revenue and earnings on Thursday that fell short of Wall Street targets and said it would cut the frequency of viewing-hours reports as the company seeks new avenues of growth.
Shares of Netflix fell nearly 8.6% in after-hours trading to $67.99.
The company led by Co-CEOs Ted Sarandos and Greg Peters said it expected $12.86 billion in revenue from July through September and diluted earnings per share of 82 cents. Analysts had forecast $13 billion in revenue and diluted EPS of 84 cents, according to LSEG.
Netflix’s headquarters in Hollywood, California. Weston Hancock/SOPA Images/Shutterstock After years of rapid subscriber gains, Netflix is working to grow by building advertising, live events and video games. The company’s stock has lost about a fifth of its value this year as investors question how it will sustain growth.
Third-quarter projections “appear to reflect a combination of management caution and a naturally maturing growth profile, rather than any sudden deterioration in the business,” PP Foresight analyst Paolo Pescatore said. He added that they would “reinforce the view that Netflix remains strong but is entering a steadier phase of growth with considerably less room for error given the always-high expectations.”
Netflix said it would cut its twice-yearly release of a viewing-hours report to once a year starting in January 2027 “to keep the focus on our primary financial metrics — revenue and operating profit.” It stopped publishing quarterly subscriber numbers in 2025.
For the just-ended quarter, Netflix revenue and EPS were roughly in line with analyst estimates. Earnings per share came in at 80 cents for the three-month period, which featured hits including crime drama “I Will Find You” and animated feature “Swapped.” Revenue totaled $12.56 billion.
“Our financial performance remains solid and we’re on track to meet our objectives for the year,” the company said in its quarterly letter to shareholders.
In April, Netflix said it had more than 325 million paying members and still had room to increase that number.
The company is building an advertising business and offering video games, two initiatives still in the early stages. It repeated an earlier forecast that ad revenue would reach $3 billion by the end of the year. The company is counting on its growing number of live events, including an expanded NFL slate, to draw more advertising dollars.
Netflix is facing competition from all corners of the entertainment industry, from traditional media companies such as Walt Disney to YouTube, and mobile viewing on apps such as TikTok. Above, Netflix co-CEO Ted Sarandos. REUTERS On a post-earnings video, Peters said the company was considering whether to offer a free option with advertising in some markets but had no near-term plans to launch one.
Netflix said engagement, or the amount of time people spend watching the service, was “healthy.” Viewing hours grew by 2% in the first half of the year, compared with 1.5% a year ago.
It said it aimed to stay ahead of the competition in part by using technology to improve all aspects of its business. Use of generative artificial intelligence by producers is “scaling quickly” and has been used in about 300 titles, mostly in post-production, the company said.
Netflix has an engagement problem. So it's going to stop talking about it as much.
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Netflix co-CEO Ted Sarandos is walking away from the company's practice of releasing viewer data twice a year. Kevin Dietsch/Getty Images Wall Street worries that Netflix has a problem with engagement — an issue you can see in the audience numbers the streaming giant periodically releases.
No problem, says Netflix: It will deal with that problem by … releasing audience numbers less often.
Netflix says it is going to stop putting out its "What We Watched" report — a voluminous data dump that details viewership for thousands of individual shows and movies — twice a year, as it has been doing since December 2023, and just did Thursday.
Instead, it is going to provide the information once a year.
Why? The company is relatively candid about this in the investor letter it released Thursday afternoon: It wants Wall Street to stop focusing on the performance of its shows and movies.
"The goal of separating the publication of the report from our earnings results is to keep the focus on our primary financial metrics — revenue and operating profit," the company said.
The flip side to that argument: If Netflix felt good about its engagement numbers, it would share them more often.
If you are a close Netflix observer, this move will have a familiar echo. In April 2024, Netflix announced it would no longer release subscriber data every quarter. And it used a similar rationale: It wanted Wall Street to stop paying attention to subscriber data and focus on other metrics instead.
Here, it's important to note that Netflix isn't required to release either data sets, at all. And that many of its competitors — including YouTube, its most formidable foe — provide very little data about their services.
So even though the company has become meaningfully less transparent over the last couple years, it still leads its peer set, by a lot. And while some of the impetus in releasing viewership numbers is to impress Wall Street, it isn't the only reason. Netflix also uses those numbers to woo Hollywood talent who worry their shows and movies may get lost amid all the streamer's offerings.
But the most important context here is the obvious one: Netflix has been getting grief from analysts and investors about worrying trends evident from the data that it has been putting out. The main one: Netflix subscribers appear to be spending less time with Netflix content than they have in the past.
And this month, Bloomberg highlighted that issue — using data directly from Netflix — with a report that showed that some of Netflix's biggest shows are seeing a steep drop-off in their second seasons.
Netflix has multiple answers to engagement worriers. It says that its engagement numbers are actually good, for starters. And on the company's earnings call on Thursday, co-CEO Ted Sarandos insisted that the company's second-season drop-offs are much less than its peers, for instance.
More broadly, the company has been arguing for a while that "quality of engagement" matters more than sheer tonnage. "As we've developed an increasingly sophisticated understanding of how consumers ascribe value to our service, we know not all hours are equal," the company said in its investor letter.
Still, you can tell Netflix is quite sensitive about the engagement issue: The word "engagement" shows up 13 times in Thursday's investor letter.
I don't know whether Wall Street will care about any of this. For years, investors obsessed about Netflix subscriber numbers — so much so that every other entrant in the streaming wars went out of their way to boast about their subscriber numbers. Then Netflix moved on, and investors seemed to move on, too.
But in the last year, Netflix stock has performed miserably, down 40%. A big chunk of that decline came from investors who worried about Netflix's plan to buy Warner Bros. Discovery for $83 billion — partly because they didn't like the idea of Netflix laying out that much cash and taking on debt, and partly because of the suggestion that Netflix felt it needed to spend that much to goose growth again.
But even though Netflix ended up walking away from that deal, it didn't solve its stock problem. Maybe this will help.
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Peter Kafka You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Peter covers media and technology for Business Insider; previously he has worked at Vox, Recode, AllThingsD, and Forbes. He was also the first hire at Silicon Alley Insider, Business Insider's predecessor.
MarketBeat Week in Review – 06/29 - 07/03Netflix NASDAQ: NFLX executives said the company remains on track for its 2026 financial plan, pointing to continued subscription growth, pricing gains, rising advertising revenue and a broadening content strategy during the company’s second-quarter earnings interview.
CFO Spence Neumann said Netflix is guiding for 12% reported revenue growth in the third quarter and 11% growth on a foreign-exchange-neutral basis. He said the drivers are “very similar to Q2,” led primarily by subscription revenue growth from membership gains and pricing, along with higher advertising revenue.
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Netflix Stock Is Near 2021 Levels, and Bulls See 4 Reasons to Care“We continue to see healthy acquisition and retention trends on the membership side, and our recent price adjustments are going well on the pricing side,” Neumann said.
For the full year, Neumann said Netflix expects 13% to 14% top-line growth, or roughly 12% on an FX-neutral basis, representing about $6 billion of incremental revenue year over year. He also emphasized that management is focused on the full year rather than quarter-to-quarter fluctuations.
The Netflix-Lionsgate Rumor Exposed a Bigger Shift in Media M&ANeumann said Netflix believes it still has significant room to grow, estimating the company is less than 45% penetrated into about 800 million addressable households globally, has captured about 7% of an addressable revenue market of approximately $670 billion, and accounts for about 5% of global TV viewing share.
Engagement Metrics Remain a Focus Co-CEO Greg Peters addressed investor questions about viewing hours and engagement, saying there is not a direct linear relationship between raw viewing hours and revenue or profit. He cited live programming as an example, noting that live content is expected to account for about 5% of Netflix’s content budget this year but only about 1% of view hours. However, Peters said six of Netflix’s top 10 new member sign-up days over the past five years have come from live events.
By contrast, Peters said kids and family animation series are also expected to represent about 5% of content spending but about 8% of view hours. He said Netflix evaluates engagement across quality, variety and quantity, rather than relying only on total hours viewed.
On the quantity side, Peters said viewing hours grew 2% in the first half of 2026, an incremental 1.5 billion hours compared with the same period last year. He said that was a slight acceleration from 1.5% growth in 2025.
“It’s combined quality, variety, and quantity of engagement that translates into satisfaction and value for members,” Peters said, adding that Netflix continues to see “industry-leading retention,” increased willingness to pay and strong advertiser demand.
Content Spending and Slate Performance Co-CEO Ted Sarandos said most of Netflix’s programming spending continues to go toward core TV series and films, where he said the company has a long track record of generating member value and business returns. Sarandos said Netflix is forecasting content expense to rise about 10% this year, above the 8% average over the last five years but below the 14% average over the past decade.
Sarandos pointed to several second-quarter releases as evidence of the slate’s performance, including “I Will Find You,” which he said was Netflix’s biggest original series launch this year, and “Swapped,” which he said is on track to become the company’s second-biggest original animated film behind “K-Pop: Demon Hunters.”
He also highlighted regional programming, including the South Korean show “Teach You a Lesson,” which he said is on track to become the second-most-watched South Korean show globally on Netflix and the company’s biggest series in South Korea. Sarandos also cited “The Polygamist,” adapted from a Zimbabwean novel for South Africa, and “Rosario Tijeras” in Latin America.
Asked about concerns over second-season viewership declines, Sarandos said Netflix is not seeing a material change in aggregate second-season viewing compared with first seasons. He said second seasons are performing within expectations and that second-season falloff has “slightly improved” this year compared with last year. He also said there are no changes to Netflix’s release strategy.
Live Events, Partnerships and New Formats Sarandos said live programming is playing an important role in driving acquisition, accelerating advertising revenue and generating conversation. He cited the World Baseball Classic in Japan, which he said became Netflix’s most-watched program ever in Japan and the biggest baseball streaming event ever.
While Sarandos said such live events can show slightly higher churn because they drive disproportionate sign-ups, he said results were in line with expectations and Netflix plans to continue expanding its global live event calendar, including regional live events.
Peters also discussed Netflix’s partnership with TF1 in France, saying the integration is still early at four weeks but that the company is pleased with the performance so far. He said the arrangement adds local French programming for members while maintaining a distinct product experience for TF1’s brand.
Asked about a potential free ad-supported streaming television, or FAST, offering, Peters said a free option could make sense in some markets, but Netflix must be thoughtful about cannibalization of paid tiers and would need an effective scaled advertising business in the relevant country. He said Netflix has no near-term plans to launch such an offering.
Sarandos said Netflix is encouraged by early progress in vertical clips and video podcasts, saying podcasts are driving incremental viewing, particularly during daytime hours and on mobile. He cited partnerships with publishers including Condé Nast, Hearst and People, as well as programming involving creators and brands such as Martha Stewart, “The Breakfast Club,” the official “Bridgerton” podcast, Bill Simmons, Pete Davidson and Brian Williams.
Advertising, Pricing and Games Peters said Netflix manages its advertising business for total revenue growth and sees an opportunity to narrow the gap between average revenue per membership on the ad tier and the standard ad-free tier. He said Netflix has expanded demand sources, continued building its own ad technology stack, added products and measurement tools, and made it easier for advertisers to transact with the company.
On pricing, Peters said recent increases in markets including the U.S., Mexico and Spain have gone well and are consistent with prior price changes and expectations. He said Netflix evaluates whether it has delivered sufficient member value before raising prices.
Peters also discussed Netflix’s video game strategy, saying the gaming market represents about $150 billion in consumer spending excluding China and Russia and not including advertising revenue. He said cloud-based TV games are showing positive signs, with FIFA and Unhinged becoming Netflix’s two most successful cloud game debuts. Since scaling the cloud initiative last October, Peters said monthly active players for cloud games have increased 11 times.
AI, M&A and Capital Allocation Sarandos said generative AI is beginning to affect hundreds of Netflix productions, with workflows used in roughly 300 titles, especially in post-production. He said the tools are helping with complex shots and sequences, including crowd enhancements and historical battle scenes, while allowing some work to be completed faster and more efficiently.
Sarandos cited the documentary series “The American Experiment,” which he said includes 17 minutes of AI-enhanced footage produced twice as fast and at half the cost of prior options. He said any cost savings are likely to be reinvested into more content.
Asked about media consolidation and speculation around acquisitions, Sarandos said Netflix would not comment on market speculation and reiterated that the company is “primarily builders, not buyers.” Neumann said there is no change to Netflix’s capital allocation philosophy, which includes investing in the business, maintaining liquidity and a healthy balance sheet, and returning excess cash through share repurchases.
Neumann said Netflix repurchased $4.7 billion of shares in the second quarter, its largest quarterly repurchase in company history, and still has about $27 billion of capacity remaining under its authorizations.
About Netflix (NASDAQ:NFLX)Netflix, Inc NASDAQ: NFLX is a global entertainment company that provides subscription-based streaming of films, television series, documentaries and other video content. Founded in 1997 by Reed Hastings and Marc Randolph and headquartered in Los Gatos, California, the company began as a DVD-by-mail rental service and introduced streaming video in 2007. Netflix later expanded into producing and distributing original programming, beginning notable original hits in the 2010s, and now operates a content production and distribution ecosystem alongside its licensing activity.
The company's primary product is its on-demand streaming service, which can be accessed on a wide range of internet-connected devices and delivered through a suite of apps and web platforms.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Netflix Co-CEOs Ted Sarandos and Greg Peters used the company’s second-quarter earnings interview to try to clear the air regarding prospects for M&A, strategic partnerships and FAST channels.
Responding to a question about Lionsgate or NBCUniversal, both considered prime suspects in the current wave of consolidation, Sarandos told Wall Street analysts he wanted to remind them of the company’s “core philosophy.” Netflix has “multiple ways to achieve our goals,” he added, among them “producing, licensing, partnering. And we’re constantly seeking ways to allocate our resources to the most attractive options.”
Repeating the same mantra that Peters offered up last fall as reports swirled about a potential run at Warner Bros. Discovery, Sarandos said, “We’re primarily builders, not buyers. That remains the case today. So, others will speculate about our intentions because they have their own reasons for that. But our track record is clear that we have a very high bar to do any big M&A.”
The remarks came after the company reported mixed second-quarter results and predicted a slight slowdown in growth in the third quarter. The numbers and projections seemed to only add to existing skepticism on Wall Street, sending Netflix shares down nearly 9% in after-hours trading. The stock has fallen more than 40% over the past year, and did not rebound after Netflix abandoned its bid for WBD and ceded the prize to Paramount (collecting a $2.8 breakup fee in the process). Questions have lingered since the merger battle, chiefly about why Netflix felt it needed to attempt by far the priciest M&A deal in its history and also whether it would feel compelled to explore other deals in the current climate of consolidation.
Peters, who steered the company’s milestone partnership with French broadcaster TF1, was asked about early takeaways from the venture and whether it might consider similar arrangements with other partners. There have been reports, for example, about NBCU streamer Peacock potentially looking to forge a partnership with Netflix. The company doesn’t do many bundles, though it is part of Comcast’s Xfinity StreamSaver package.
“Since the very beginning when we launched our streaming service, we’ve always sought to expand the entertainment offering,” Peters said. “Our members consistently tell us that they want more from us. We see that in the usage behavior. We see it any kind of testing or modeling we do around the space. And I would say that fulfilling on that customer desire for more has really been the driver for growth for our business for the last two decades. This partnership with TF1 is yet just another approach to expanding that offering.”
With a global footprint of 330 million households, he added, “We believe that we can help other producers, other services maximize the value and the relevance of the content that they invest in by finding those bigger audiences. And we have many, many examples of this effect, including now, in this new model with TF1.”
Given the TF1 integration only took effect last month in France, “it’s early,” Peters said. “There’s a bunch that we’ll learn through this process, but we are pleased with the performance we are seeing. … The early results from how members are reacting, how they’re interacting are very promising.”
While no follow-on agreements are ready to announce, Peters added, “if we see additional deals that similarly serve our members, that work for our partner, that work for us, we’ll certainly consider them.”
FAST channels, which have become a multi-billion-dollar category explored by virtually every rival streamer, remain uncharted territory for Netflix. Numerous press reports in recent months have speculated that the company could license third-party programming or use its existing library to launch FAST channels, which could potentially boost advertising revenue and subscriber levels.
“Maintaining and increasing accessibility, especially as we expand our content offering around the world, add new customer segments, that’s a critical focus and goal for us,” Peters said. “Optimizing long-term revenue is the other big goal. A free offering could make sense in some markets, but we have to be thoughtful about cannibalization of pay tiers. We’ve got to ensure that we’ve got the right offering, the right differentiation, differentiation of that offering.”
Peters added that “an effective, scaled ads business in any candidate country for such an offering is clearly an important enabling factor to make those economics work.” Given that Netflix only recently expanded its ad tier beyond its initial 12-territory footprint, it would need time to continue maturing.
“That’s all to say that free is something that we’re gonna continue to consider, but we have no near term plans to launch something,” Peters said.
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Netflix (NFLX - Free Report) came out with quarterly earnings of $0.8 per share, beating the Zacks Consensus Estimate of $0.79 per share. This compares to earnings of $0.72 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +1.27%. A quarter ago, it was expected that this internet video service would post earnings of $0.76 per share when it actually produced earnings of $0.7, delivering a surprise of -7.89%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Netflix, which belongs to the Zacks Broadcast Radio and Television industry, posted revenues of $12.56 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.1%. This compares to year-ago revenues of $11.08 billion. The company has topped consensus revenue estimates two times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Netflix shares have lost about 21.4% since the beginning of the year versus the S&P 500's gain of 10.6%.
What's Next for Netflix?While Netflix has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Netflix was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.83 on $13.02 billion in revenues for the coming quarter and $3.60 on $51.42 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Broadcast Radio and Television is currently in the bottom 35% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Townsquare Media (TSQ - Free Report) , is yet to report results for the quarter ended June 2026.
This operator of radio stations in small and mid-sized markets is expected to post quarterly earnings of $0.19 per share in its upcoming report, which represents a year-over-year change of -13.6%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Townsquare Media's revenues are expected to be $114.71 million, down 0.6% from the year-ago quarter.
For the quarter ended June 2026, Netflix (NFLX - Free Report) reported revenue of $12.56 billion, up 13.4% over the same period last year. EPS came in at $0.80, compared to $0.72 in the year-ago quarter.
The reported revenue compares to the Zacks Consensus Estimate of $12.57 billion, representing a surprise of -0.1%. The company delivered an EPS surprise of +1.27%, with the consensus EPS estimate being $0.79.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Netflix performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenue- United States and Canada (UCAN): $5.43 billion versus $5.5 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +10.2% change.Revenue- Latin America (LATAM): $1.58 billion compared to the $1.5 billion average estimate based on six analysts. The reported number represents a change of +21.2% year over year.Revenue- Asia-Pacific (APAC): $1.51 billion versus the six-analyst average estimate of $1.52 billion. The reported number represents a year-over-year change of +15.7%.Revenue- Europe, Middle East and Africa (EMEA): $4.03 billion versus $4.04 billion estimated by six analysts on average. Compared to the year-ago quarter, this number represents a +14% change.View all Key Company Metrics for Netflix here>>>
Shares of Netflix have returned -4.3% over the past month versus the Zacks S&P 500 composite's +0.5% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Netflix reported earnings just above consensus, but the market found the result underwhelming given its valuation. NFLX is now growing earnings in the low teens, with next quarter guidance at 12% growth. The current price-earnings ratio of 20 appears excessive relative to the 12% growth rate, suggesting overvaluation.
Streaming giant Netflix anticipates content spending (of about $20 billion) will be up around 10% in 2026, accelerating from 8% increases over the last five years but below the 14% the company averaged over the past decade. Live, now a focus, will be about 5% of total.
The higher outlay comes even as generative AI lowers costs, allowing the streamer to make “higher quality output more quickly and efficiently,” said co-CEO Ted Sarandos in a video call after quarterly earnings Thursday. He said Gen AI workflows have been used in roughly 300 Netflix titles, concentrated in post-production.
“We’re leveraging Gen AI for really complicated shots and sequences… enhancing crowds, or historical battle scenes, those kind of things,” he added. “And keep in mind that that in many of the cases productions would have left out those key shots because they just wouldn’t have been able to afford them. So they’re saved by availability and access to these Gen AI tools.”
AI use cases “are scaling faster and faster,” he said. Documentary series The American Experiment features 17 minutes of AI-enhanced footage, which was “produced twice as fast and at half the cost of previous options.”
Cost savings will likely be reinvested in more content on the service, which fuels engagement and the “whole revenue, profit flywheel.”
The comments followed lackluster second quarter financials with execs on the defensive as analysts grilled the company on what Wall Street perceives as a bit of a slump.
Live was a big topic as the streamer continues to ramp up its slate. Sarandos lauded live programming for driving subscriber acquisitions, accelerating ad revenue, fueling conversation and helping launch new shows. It’s been expanding its live sports lineup. He also called out The Roast of Kevin Hart and the MLB Home Run Derby, which was followed by an exclusive Hot Ones special (via a partnership with Sean Evans) shot at a baseball stadium with guest Will Ferrell, whose new series The Hawk just debuted on Netflix.
It’s “a cool example of the intersection between our core series, our expansion to creator content … plus live sports,” Sarandos said.
He also touted new vertical video clips, podcasts and content deals with publishers including Condé Nast, Hearst and People that will bring more lifestyle programming, saying, “Over the last 15 years, the definition of TV has broadened and our definition has changed along with it.”
SummaryNetflix, Inc. remains a Strong Buy, combining robust fundamentals, resilient growth, and an undervalued multiple despite market skepticism.Q2 results showed 13.4% revenue growth, healthy 33.4% margins, and strong membership and ad revenue, even as headline estimates were missed.Significant investments in content and ecosystem expansion—live events, podcasts, gaming—support long-term growth beyond traditional streaming.At ~$68, NFLX trades at 25x OCF and an implied 2030 P/E of 11x, offering substantial upside if growth persists. Wachiwit/iStock Editorial via Getty Images
If I had to highlight a stock at the moment, it would be Netflix, Inc. (NFLX). It reminds me of Alphabet (GOOGL, GOOG) a few years ago, or Meta (
2.86K Followers
Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOGL, META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
LOS ANGELES, CALIFORNIA - JULY 09: L-R) Ted Sarandos, Co-CEO, Netflix, Will Ferrell and Molly Shannon attend the Los Angeles premiere of Netflix's "The Hawk" . (Photo by Frazer Harrison/WireImage)
WireImage
Before Thursday's call, I set out three tests for Netflix's second quarter: what happened to viewing hours, whether management would argue that raw hours understate the value of its audience and whether a free, advertising-funded version of Netflix would enter the discussion. The call answered all three, one of them almost word for word.
The Hours, And The Argument Around ThemStart with the number. Viewing hours grew 2% in the first half of 2026, co-CEO Greg Peters said in the company's earnings interview, adding 1.5 billion hours and slightly improving on the 1.5% growth recorded a year earlier.
That is growth, but not much of it. Before giving the figure, Peters reframed the debate: “There is not a linear relationship between view hours and revenue and profit, because all hours are not created equal.”
Live programming is his clearest example. Peters said it will consume 5% of Netflix's content budget this year but produce only 1% of viewing hours, even though six of the company's 10 biggest sign-up days over the past five years came from live events.
That argument arrived precisely on schedule. Netflix is now asking investors to judge engagement not only by how long people watch, but also by what that viewing does for subscriptions, advertising and customer loyalty.
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Peters described the company's framework as quality, variety and quantity. He declined to explain how Netflix calculates its quality measure, saying the details represent “a competitive advantage.”
The arithmetic has not changed. Content expense is expected to rise about 10% this year, while first-half viewing hours grew 2%.
Netflix is therefore spending more on programming than the audience is growing in raw hours. Its advertising business still has to expand across that gap.
ForbesNetflix Q2 Preview: Why Its $3 Billion Ad Bet Needs More InventoryBy Maureen KerrNetflix Pushes Back On Season-Two DeclinesCo-CEO Ted Sarandos came prepared for the question about audiences abandoning shows after their first seasons. Netflix is “not seeing any material change” across its full slate, he said, and season-two declines have “actually slightly improved this year relative to last year.”
Sarandos argued that some drop-off is normal because Netflix launches shows to unusually large global audiences. He also dismissed analyses based on a small selection of titles: “You can pick any five data points to tell any story you want.”
That is a direct response to outside research showing sharp declines for individual series. But Netflix did not publish the broader figures that would allow investors to compare those examples with the performance of its entire catalog.
ForbesNetflix Clips Won’t Replace TikTok—But Will Influence ViewersBy Maureen KerrA Free Version Of Netflix Enters The DiscussionThis is where the call moved furthest. Peters said Netflix is testing free trials for new customers in several countries, alongside an earlier discounted first-month offer in Japan around the World Baseball Classic.
Asked directly about a free service, he went further: “A free offering could make sense in some markets, but we have to be thoughtful about cannibalization of paid tiers.” In simpler terms, Netflix does not want a free version to persuade existing customers to stop paying.
Peters then explained what would make the model possible. A large advertising business in any country considering a free service would be “an important enabling factor to make those economics work.”
Netflix has no near-term plan to launch one. But the mechanism is now public: a free service would depend on advertising, and advertising depends on having enough viewing time to sell.
The inventory is already being built. Sarandos said video podcasts are bringing Netflix viewing it did not previously have, particularly during daytime hours rather than its traditional evening peak.
Lifestyle programming from Condé Nast, Hearst and People Inc. arrives next month. Those shows extend Netflix into another category that can be produced more cheaply and released more frequently than prestige drama.
Sarandos pointed to the launch of Will Ferrell's new series The Hawk, promoted with a Hot Ones special filmed at the Major League Baseball Home Run Derby, as an example of core shows, creator content and live sports working together.
Generative AI points in the same direction. Netflix has used AI tools across roughly 300 titles, and Sarandos said any savings “will likely be reinvested” in more content.
One documentary shows the shape of it. American Experiment includes 17 minutes of AI-enhanced footage that Sarandos said was produced twice as fast and at half the cost. Those numbers deserve their own examination.
That means more programming, produced at lower cost, creating more hours around which Netflix can sell advertising.
Netflix is also widening what appears inside the service. Asked about its integration of French broadcaster TF1, Peters called the early results promising and said the company would “certainly consider” similar partnerships that work for Netflix, its members and its partners.
The Test, ScoredThursday's call confirmed the shape of the argument in Netflix's own language. Viewing hours are growing slowly, management has built a case for why raw hours do not tell the whole story and a possible free service is now being discussed as an advertising question.
The identity question did not come up. The arithmetic did.
LOS ANGELES, CALIFORNIA - DECEMBER 05: An aerial view of the Netflix logo displayed at Netflix studios, with the Hollywood sign in the distance, on December 5, 2025 in Los Angeles, California. Netflix and Warner Bros. Discovery, Inc. have announced an $82.7 billion deal for Netflix to acquire Warner Bros. film and TV studios, HBO Max, and HBO. (Photo by Mario Tama/Getty Images)
Getty Images
Netflix earnings numbers are always highlighly anticipated by media industry analysts and investors, given its size and influence in the streaming television business.
But this Q2 2026 earnings report was especially important because it came at the end of a couple of weeks of bad press, including a discussion about whether or not audience engagement numbers are dropping at the streamer.
And when the company released its 8-K form on Thursday, ahead of a conference call discussing the numbers by Netflix executives, the earnings numbers had a lot of things to worry about if you are an investor in the company.
If reading the 8-K was a drinking game in which you did a shot every time the document mentioned “engagement,” you’d be drunk before you got halfway through the 20-page document.
Netflix wants you to know that despite the press reports, their subscriber engagement numbers are just peachy:
We’re delivering increasing value to our members; engagement is healthy, reflecting the quality, quantity, and variety of our offering...View hours grew +2% in H1’26 vs. +1.5% growth in 2025, despite the competitive impact of the Winter Olympics and the World Cup this year.
Netflix is also arguing that while engagement numbers are important, there are other metrics that are as or more important when it comes to judging the overall success of the company:
We’ve used “engagement” as a shorthand for the value we deliver members. But, as we’ve developed an increasingly sophisticated understanding of how consumers ascribe value to our service, we know not all hours are equal. Time spent is just one aspect of strong engagement - quality and variety also matter. The key is to improve across all of those dimensions: quality, variety, and quantity.
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I’m not convinced that the argument “sure, engagement is an issue, but have a lot of titles people like” is a winning approach. Especially at the same time in which the streamer announced that next year, it will release the “What We Watched” report on an annual basis only. That report tracks viewing numbers and engagement on Netflix.
There were some interesting data points mentioned in the 8-K, although there wasn’t much provided in the way of context:
For instance, approximately half of our viewing occurs in the evening, but our recently launched video podcasts over-index on viewing during the day and on mobile devices, an indicator that this engagement is incremental.
Presumably, the other half of Netflix’s viewing occurs in the daytime hours. And what exactly does “over-index” mean when discussing am initiative which is still being rolled out?
Also, this video podcasts initiative has been partially limited to more mature markets such as North America, the UK, Europe and Australia. So how do engagement numbers in the territories with podcasts compare to those places where subscribers don’t have access? What do the financials for the video podcast deals look like? How long do the deals last?
But let’s not forget engagement:
Overall, our engagement remains healthy and as with all things we do, we’re working hard to improve every day.
And in fact, during a call company executives held with analysts and reporters after the 8-K was released, Co-CEO Ted Sarandos argued that engagement issues were “very common” in the industry (something I wrote about earlier in the week) and he also said that Netflix’s engagement numbers have recently improved somewhat:
“We are not seeing any material change in our second season viewing compared to season ones, our second seasons are performing well within our bands of expectation. Very often we see drop off from season one to season two. It’s very common in the industry, but it’s even more so with us because we launch our shows so big. When we look across the entire portfolio, across all the regions, all the content categories, our season two fall off is actually slightly improved this year relative to last year. Now, of course, you can pick any five data points to tell any story you want, but I’m going to repeat this: our season two fall off is actually slightly improved this year relative to last year.”
As for live events, the news is mixed for Netflix. Company executives noted that live events accounted for six of the top 10 new member sign-up days over the past five years. Which makes sense given that in mature markets, most likely subscribers have already joined. So live events provides a unique entry point for more reluctant subscribers.
Still, Netflix noted that while live programming accounts for more than 5% of its content spending, it makes up only about 1% of viewing hours.
However, the biggest challenge for investors and analysts is that the decision by Netflix to report engagement numbers less frequently only adds to the list of basic financial and strategic metrics that aren’t being reported anymore by the company. Or other companies in the streaming sector, to be fair.
As I wrote about in my Too Much TV newsletter after Netflix’s Q1 2026 report, it’s almost impossible to determine the success or failure of strategy at the company given the lack of details that would be reported by companies in other industries.
While Netflix likes to focus on revenue, it’s more important to be able to figure out where that revenue comes from and what a company has to do in order to generate it. And the standard across most industries is what is called the CLV - customer lifetime value. Which is the average amount of revenue each new and current customer is expected to generate over the life of their subscription.
Which means that you calculate the CLV by average revenue per account, times the gross margin, divided by the average subscriber churn rate.
And we don’t have any of those numbers. The scant top-line information Netflix provides is broken down by territory. And that means countries with higher ARPAs are combined with countries with much lower ARPAs and then averaged across the territory.
There is no way to know what strategies are successful or where weaknesses might be bubbling up.
I have been covering Netflix since it was a one-DVD warehouse in the SF Bay area. I have been supportive of a lot of the decisions made by the company over the years. But it is uniquely frustrating to cover a company what ends up making me feel as if I’m trying to cover the decisions of the Wizard Of Oz while he’s hiding behind billows of smoke and a giant curtain.
Visa (V - Free Report) closed the most recent trading day at $365.14, moving +2.82% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.51% for the day. Meanwhile, the Dow experienced a drop of 0.2%, and the technology-dominated Nasdaq saw a decrease of 1.47%.
Heading into today, shares of the global payments processor had gained 7.49% over the past month, outpacing the Business Services sector's gain of 2.81% and the S&P 500's gain of 0.53%.
Market participants will be closely following the financial results of Visa in its upcoming release. The company plans to announce its earnings on July 28, 2026. The company's earnings per share (EPS) are projected to be $3.22, reflecting a 8.05% increase from the same quarter last year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.35 billion, up 11.62% from the year-ago period.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $13.1 per share and a revenue of $45.37 billion, representing changes of +14.21% and +13.42%, respectively, from the prior year.
Investors should also note any recent changes to analyst estimates for Visa. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 0.07% increase. Visa currently has a Zacks Rank of #2 (Buy).
From a valuation perspective, Visa is currently exchanging hands at a Forward P/E ratio of 27.1. This signifies a premium in comparison to the average Forward P/E of 11.35 for its industry.
Investors should also note that V has a PEG ratio of 1.9 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The average PEG ratio for the Financial Transaction Services industry stood at 0.87 at the close of the market yesterday.
The Financial Transaction Services industry is part of the Business Services sector. This industry, currently bearing a Zacks Industry Rank of 82, finds itself in the top 34% echelons of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
In the latest trading session, Target (TGT - Free Report) closed at $140.21, marking a +1.39% move from the previous day. The stock's performance was ahead of the S&P 500's daily loss of 0.51%. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, lost 1.47%.
Heading into today, shares of the retailer had gained 8.2% over the past month, outpacing the Retail-Wholesale sector's gain of 0.51% and the S&P 500's gain of 0.53%.
Investors will be eagerly watching for the performance of Target in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $2.21, reflecting a 7.8% increase from the same quarter last year. Meanwhile, the latest consensus estimate predicts the revenue to be $26 billion, indicating a 3.15% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $8.35 per share and revenue of $108.83 billion, which would represent changes of +10.3% and +3.87%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for Target. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Currently, Target is carrying a Zacks Rank of #2 (Buy).
In the context of valuation, Target is at present trading with a Forward P/E ratio of 16.56. Its industry sports an average Forward P/E of 29.19, so one might conclude that Target is trading at a discount comparatively.
We can additionally observe that TGT currently boasts a PEG ratio of 2.7. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. TGT's industry had an average PEG ratio of 2.54 as of yesterday's close.
The Retail - Discount Stores industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 16, which puts it in the top 7% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
Verizon Communications (VZ - Free Report) ended the recent trading session at $43.88, demonstrating a +2.45% change from the preceding day's closing price. This change outpaced the S&P 500's 0.51% loss on the day. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 1.47%.
Prior to today's trading, shares of the largest U.S. cellphone carrier had lost 6.57% lagged the Computer and Technology sector's loss of 2.99% and the S&P 500's gain of 0.53%.
Market participants will be closely following the financial results of Verizon Communications in its upcoming release. The company plans to announce its earnings on July 24, 2026. The company is expected to report EPS of $1.27, up 4.1% from the prior-year quarter. Meanwhile, our latest consensus estimate is calling for revenue of $35.31 billion, up 2.35% from the prior-year quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.98 per share and a revenue of $142.33 billion, signifying shifts of +5.73% and +2.99%, respectively, from the last year.
Investors should also take note of any recent adjustments to analyst estimates for Verizon Communications. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.34% higher within the past month. Verizon Communications currently has a Zacks Rank of #3 (Hold).
Investors should also note Verizon Communications's current valuation metrics, including its Forward P/E ratio of 8.6. Its industry sports an average Forward P/E of 10.49, so one might conclude that Verizon Communications is trading at a discount comparatively.
Meanwhile, VZ's PEG ratio is currently 1.05. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As of the close of trade yesterday, the Wireless National industry held an average PEG ratio of 1.08.
The Wireless National industry is part of the Computer and Technology sector. Currently, this industry holds a Zacks Industry Rank of 214, positioning it in the bottom 14% of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
The latest implementation of a shifting retail strategy was the spark that lit the fuse under Verizon Communications (VZ +2.37%) stock on Thursday. Cheered by the move, investors pushed the big telecom's stock up by more than 2%, on a day when the S&P 500 index only ticked up by 0.4%.
Franchises on the rise Verizon announced that it aims to sell 274 of its stores around the U.S., and cut roughly 500 corporate jobs as part of a broader restructuring program.
Image source: Verizon Communications.
All told, this round of store transitions will affect around 3,000 of the company's retail and corporate employees. The stores are to be sold to third parties that will operate them under franchise agreements; many of the affected workers would likely be retained by those entities.
Increasingly, Verizon's retail outlets are being managed under the franchise model. Currently, around 5,000 company stores are run in this manner. Following the sale announced on Thursday, Verizon will directly operate only about 1,000 of its outlets.
Just after current CEO Dan Schulman took the reins last October, the company announced plans to cut roughly 15% of its workforce, or around 13,000 people. This is partly in anticipation of artificial intelligence (AI) taking over certain functions, such as aspects of customer service.
Other components of this corporate makeover include a recently introduced, simplified service plan for clients and a refreshed loyalty program.
Today's Change
(
2.37
%) $
1.02
Current Price
$
43.85
The dividend difference While it's never heartening to learn of potential job cuts, the silver lining is that the current program could result in a genuinely leaner, more efficient Verizon if done well. Shareholders would currently welcome the return of solid growth for the company, but as it stands, it's a reliable (if unspectacular) performer that pays a handsome, high-yield dividend (over 6%).
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Verizon Communications. The Motley Fool has a disclosure policy.
BlackRock (BLK - Free Report) ) and Goldman Sachs (GS - Free Report) ) delivered record Q2 results this week, maintaining the strong momentum that has fueled financial stocks.
Robust capital markets activity and healthy client inflows helped both companies comfortably exceed expectations and post quarterly records for revenue and adjusted EPS, respectively.
BlackRock continues to dominate the global asset management market with record assets under management (AUM), while Goldman Sachs benefited from a resurgence in investment banking and trading activity.
For investors deciding between the two financial leaders, the question becomes whether the stability of BlackRock or the cyclical growth potential of Goldman Sachs offers the better opportunity going forward.
Record AUM Fuels BlackRock’s Strong Q2 ResultsBlackRock produced another outstanding quarter, highlighted by its AUM surpassing $15 trillion for the first time in company history after attracting $192 billion of net client inflows during Q2.
Revenue climbed more than 30% year over year to $7.08 billion and comfortably exceeded Q2 estimates of $6.82 billion.
On the bottom line, BlackRock posted Q2 adjusted net income of $2.29 billion or $13.91 per share, which increased 15% from a year ago and topped EPS expectations of $12.67 by nearly 10%. Notably, the firm's operating margin expanded to roughly 46%, its highest level in nearly five years.
Perhaps more importantly, management remained highly optimistic about its long-term outlook, highlighting continued expansion across ETFs, private markets, and technology services.
BlackRock also increased its quarterly share repurchases to $550 million and raised its full-year share repurchase target to roughly $2 billion. Although BlackRock doesn’t offer specific financial guidance, the company reaffirmed expectations for continued double-digit earnings growth.
Image Source: Zacks Investment Research
Goldman Had The More Explosive Earnings ReportPivoting to Goldman Sachs, Q2 revenue surged 39% YoY to $20.33 billion and blasted estimates of $16.49 billion by 23%.
More impressive, Goldman reported Q2 adjusted net income of $6.63 billion, translating to EPS of $20.98, which nearly doubled from a year ago and crushed expectations of $14.47 per share by 45%.
Furthermore, Goldman highlighted that its annualized return on equity (ROE) reached an impressive 23.5%.
The biggest driver was Global Banking & Markets, where revenue soared 53% thanks to exceptionally strong investment banking activity, equity underwriting, debt underwriting, and trading results. It’s noteworthy that Goldman’s investment banking fees increased 55% as capital markets remained highly active.
Like BlackRock, Goldman doesn't provide traditional earnings guidance, although management struck an optimistic tone regarding client engagement, deal pipelines, and capital markets activity, suggesting favorable conditions may continue into the second half of the year.
Image Source: Zacks Investment Research
Performance & Valuation Comparison (P/E)While both stocks have rewarded long-term shareholders, Goldman Sachs has generated substantially stronger returns in recent years.
In the last three years, Goldman Sachs' stock has soared over 230%, impressively outperforming the benchmark S&P 500’s 75% return. On the other hand, BlackRock shares are up a very respectable 50% but have trailed the broader market.
Image Source: Zacks Investment Research
Despite an extensive rally, Goldman’s 19X forward earnings multiple still offers a slight discount to BlackRock’s 20X. Still, both stocks offer a pleasant discount to the benchmark’s 23X.
That said, BlackRock is roughly on par with its decade-long forward P/E median, while Goldman Sachs is noticeably above its 10-year average of 14X.
Image Source: Zacks Investment Research
BlackRock’s Dividend Levels the Playing FieldDespite Goldman’s more attractive stock performance and valuation, income investors may prefer BlackRock.
BlackRock has maintained the higher dividend yield throughout most of the last year, reflecting its shareholder-friendly capital allocation strategy and highly predictable cash flow generated from recurring management fees.
Goldman Sachs has steadily increased its dividend over time as well, but its stronger share price appreciation has compressed the yield. While Goldman’s 1.56% annual dividend yield still tops the S&P 500’s average, BlackRock’s sits at a more attractive 2.1%.
Image Source: Zacks Investment Research
Conclusion & Strategic Thoughts Choosing between these financial leaders largely depends on an investor's objectives.
For investors prioritizing dependable long-term compounding, recurring revenue, and a higher dividend yield, BlackRock remains one of the highest-quality financial companies in the market.
However, investors seeking stronger earnings momentum and a more attractive growth-to-valuation profile may find Goldman Sachs to be the more compelling opportunity following its outstanding Q2 results.
For now, Goldman Sachs' stock sports a Zacks Rank #2 (Buy) with BlackRock landing a Zacks Rank #3 (Hold).
SummaryCompaniesPayPal believes a bid for it undervalues the companyThe company hasn't yet responded to the proposalThe board is expected to continue to meet on the issueJuly 16 (Reuters) - PayPal’s (PYPL.O), opens new tab board sees a $53 billion takeover bid by rival Stripe and private equity firm Advent International as undervaluing the company and facing regulatory and financing hurdles, a person familiar with the matter said, potentially setting the stage for negotiations over the future of the U.S. payments giant.
PayPal has not formally responded to the proposal, two other sources said.
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The consortium's bid comes as PayPal, founded in the late 1990s, has struggled in recent years to compete against rivals like Apple Pay and Google Pay, with management trying to revive its flagging share price in the face of slowing growth. Combining Stripe and PayPal, the most widely used payment platforms for internet merchants, would create one of the world's largest global online payments companies, processing some $3.7 trillion of annual volume.
PayPal's board is evaluating the bid – and the possibility that other offers could emerge – against management’s turnaround strategy, the person said. Its early view is that while the $60.50 per share offer represents a premium to the company’s recent share price, it does not fully reflect the potential value the company could create over the coming years if management successfully executes its strategy, the source said. PayPal rose 2% on Thursday to $56.73.
The board is also weighing factors beyond price, including the certainty of financing, potential regulatory hurdles and what could be a lengthy timeline to complete any transaction, the source added. It is scheduled to hold additional meetings, the source said. The details of the board’s view are reported here for the first time.
The consortium, meanwhile, is trying to address some of these issues. JPMorgan (JPM.N), opens new tab and Morgan Stanley (MS.N), opens new tab have provided the bidders a roughly $50 billion financing package, two other people familiar with the bid said. The two banks also serve as advisers to the consortium, they added.
Stripe and Advent are contributing $17 billion in equity for the offer, one of the people said.
PayPal, Advent, JPMorgan, Morgan Stanley, and Stripe declined to comment.
Under the offer, which was submitted earlier this month, Stripe and Advent would jointly own PayPal, with each holding an equal stake rather than breaking up the company, Reuters previously reported. But they have also considered possible remedies should it run afoul of antitrust regulators, one of the sources said.
That potentially involves separating PayPal’s Braintree business or other assets and transferring them to Advent, which could then combine those assets with its payments investments, including Nuvei, the person said.
Despite PayPal's reservations over the current proposal, the sources said the consortium has emerged as the most serious bidder for PayPal and it remains interested in reaching an agreement. While they are seeking to move quickly, negotiations are likely to take time, the sources said.
Block (XYZ.N), opens new tab, Stripe and Advent first approached PayPal together in April, but Block exited the consortium before Stripe and Advent submitted their latest offer.
Block did not immediately respond to a request for comment.
Investors will be watching PayPal's July 28 earnings report for signs that growth in its core checkout business is stabilizing after the company earlier this year issued a weaker-than-expected outlook and warned of slowing momentum in the segment.
Privately held Stripe enlisted Advent as an equity partner because funding the entire equity portion of a deal on its own would be difficult, according to the person familiar with the bid. Advent’s involvement could also give the consortium additional flexibility in addressing potential regulatory concerns, the person added. Advent has been an active investor in the payments sector, with a track record of acquiring and investing in companies across the industry, including Worldpay, Vantiv and, more recently, Nuvei.
The size of the transaction makes it difficult for many financial buyers to pursue, even as assets such as Venmo have drawn interest, while regulatory considerations could complicate interest from some strategic acquirers.
(This story has been refiled to remove duplication of Stripe declining to comment)
Reporting by Milana Vinn in New York and Manya Saini in Bengaluru; editing by Echo Wang, Colin Barr and Stephen Coates
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Milana Vinn reports on technology, media, and telecom (TMT) mergers and acquisitions. Her content usually appears in the markets and deals sections of the website. Milana previously worked at GLG and PE Hub, where she spent several years covering TMT deals in private equity. She graduated from CUNY Graduate School of Journalism with Masters in Business Journalism.
Manya covers the most influential U.S. financial institutions, from Wall Street’s largest banks and card networks to leading asset managers and fintech companies. She also reports on late-stage venture capital fundraises, initial public offerings on U.S. exchanges and regulatory developments shaping the cryptocurrency industry. Her work appears across the finance, markets, business and future of money sections of the Reuters website. She holds a bachelor’s degree in political science from the University of Delhi and a master’s in journalism from the Symbiosis Institute of Media and Communication.
In the latest trading session, Paypal (PYPL - Free Report) closed at $56.73, marking a +2.18% move from the previous day. This change outpaced the S&P 500's 0.51% loss on the day. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 1.47%.
Coming into today, shares of the technology platform and digital payments company had gained 31.94% in the past month. In that same time, the Business Services sector gained 2.81%, while the S&P 500 gained 0.53%.
The investment community will be paying close attention to the earnings performance of Paypal in its upcoming release. The company is slated to reveal its earnings on July 28, 2026. In that report, analysts expect Paypal to post earnings of $1.28 per share. This would mark a year-over-year decline of 8.57%. Simultaneously, our latest consensus estimate expects the revenue to be $8.52 billion, showing a 2.75% escalation compared to the year-ago quarter.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $5.32 per share and a revenue of $34.31 billion, signifying shifts of +0.19% and +3.44%, respectively, from the last year.
Any recent changes to analyst estimates for Paypal should also be noted by investors. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.3% higher. Currently, Paypal is carrying a Zacks Rank of #3 (Hold).
Investors should also note Paypal's current valuation metrics, including its Forward P/E ratio of 10.45. Its industry sports an average Forward P/E of 11.35, so one might conclude that Paypal is trading at a discount comparatively.
We can also see that PYPL currently has a PEG ratio of 1.39. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. As the market closed yesterday, the Financial Transaction Services industry was having an average PEG ratio of 0.87.
The Financial Transaction Services industry is part of the Business Services sector. With its current Zacks Industry Rank of 82, this industry ranks in the top 34% of all industries, numbering over 250.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
International Business Machines Corporation reported a significant Q2 revenue miss, with $17.2B vs. $17.86B consensus, and adjusted EPS of $2.93 below expectations. IBM's segment performance deteriorated: Software growth slowed to 5%, Consulting was flat, and Infrastructure declined 7%, raising concerns about broad-based demand weakness. AI infrastructure spending is benefiting hardware and data center suppliers more than IBM, intensifying competition for customer budgets and clouding IBM's AI growth narrative.
IBM (IBM +3.72%) stock fell off a cliff this week. Dropping more than 25% in one day, IBM posted its worst decline in its more than a century-old history, erasing roughly $67 billion in market value.
The horrible day was triggered by an earnings warning from the company, where revenue and growth fell far short of expectations. The question now is whether the short-term trouble could present a longer-term opportunity.
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The reason IBM's earnings fell precipitously is a rotation away from software toward memory and AI servers. There is incredible demand and a constrained supply for AI accelerators and memory chips. IBM's customers reallocated funds accordingly, locking down their hardware needs before prices skyrocket too far. IBM CEO Arvind Krishna admitted the company didn't anticipate the sheer scale of this shift.
Yes, the fall and earnings miss are concerning, but this looks more like a cyclical and timing problem than a long-term issue.
Image source: The Motley Fool.
Is IBM a buy right now? Wall Street often overreacts, and I believe that's what has happened here. The selloff of IBM has created an opportunity to buy the stock at a discount. However, investors will still need to be patient and ride out this memory-dominated cycle.
I'm cautiously bullish on IBM. The short-term troubles don't negate the fact that just last quarter, IBM reported free cash flow of more than $2 billion and 9% revenue growth. The rest of this year could be tough for IBM, but I don't see the memory buying spree lasting forever.
Because of the stock's crash, IBM is relatively inexpensive right now.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends International Business Machines. The Motley Fool has a disclosure policy.
In the latest trading session, Chevron (CVX - Free Report) closed at $183.86, marking a +1.24% move from the previous day. This change outpaced the S&P 500's 0.51% loss on the day. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 1.47%.
Shares of the oil company have appreciated by 2.26% over the course of the past month, outperforming the Oils-Energy sector's gain of 0.92%, and the S&P 500's gain of 0.53%.
The investment community will be closely monitoring the performance of Chevron in its forthcoming earnings report. The company is scheduled to release its earnings on July 31, 2026. It is anticipated that the company will report an EPS of $5.6, marking a 216.38% rise compared to the same quarter of the previous year. Meanwhile, our latest consensus estimate is calling for revenue of $56.17 billion, up 25.31% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of $14.75 per share and a revenue of $216.65 billion, demonstrating changes of +102.33% and +14.61%, respectively, from the preceding year.
Investors should also pay attention to any latest changes in analyst estimates for Chevron. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 7.11% downward. Right now, Chevron possesses a Zacks Rank of #3 (Hold).
Investors should also note Chevron's current valuation metrics, including its Forward P/E ratio of 12.31. This represents a premium compared to its industry average Forward P/E of 8.01.
It's also important to note that CVX currently trades at a PEG ratio of 0.64. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. Oil and Gas - Integrated - International stocks are, on average, holding a PEG ratio of 0.62 based on yesterday's closing prices.
The Oil and Gas - Integrated - International industry is part of the Oils-Energy sector. At present, this industry carries a Zacks Industry Rank of 234, placing it within the bottom 5% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Newmont Corporation (NEM - Free Report) closed the most recent trading day at $90.83, moving -4.6% from the previous trading session. This change lagged the S&P 500's 0.51% loss on the day. Meanwhile, the Dow lost 0.2%, and the Nasdaq, a tech-heavy index, lost 1.47%.
Shares of the gold and copper miner have depreciated by 9.9% over the course of the past month, underperforming the Basic Materials sector's loss of 8.52%, and the S&P 500's gain of 0.53%.
Investors will be eagerly watching for the performance of Newmont Corporation in its upcoming earnings disclosure. The company's earnings report is set to be unveiled on July 23, 2026. In that report, analysts expect Newmont Corporation to post earnings of $2.18 per share. This would mark year-over-year growth of 52.45%. Our most recent consensus estimate is calling for quarterly revenue of $6.19 billion, up 16.38% from the year-ago period.
NEM's full-year Zacks Consensus Estimates are calling for earnings of $9.32 per share and revenue of $26.74 billion. These results would represent year-over-year changes of +35.27% and +17.96%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Newmont Corporation. Such recent modifications usually signify the changing landscape of near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable 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. Within the past 30 days, our consensus EPS projection has moved 5.92% lower. Newmont Corporation currently has a Zacks Rank of #3 (Hold).
Looking at valuation, Newmont Corporation is presently trading at a Forward P/E ratio of 10.22. For comparison, its industry has an average Forward P/E of 9.55, which means Newmont Corporation is trading at a premium to the group.
It is also worth noting that NEM currently has a PEG ratio of 1.08. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Mining - Gold industry had an average PEG ratio of 0.64 as trading concluded yesterday.
The Mining - Gold industry is part of the Basic Materials sector. At present, this industry carries a Zacks Industry Rank of 228, placing it within the bottom 8% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
In the latest trading session, Synopsys (SNPS - Free Report) closed at $417.03, marking a -1.94% move from the previous day. This change lagged the S&P 500's daily loss of 0.51%. On the other hand, the Dow registered a loss of 0.2%, and the technology-centric Nasdaq decreased by 1.47%.
The maker of software used to test and develop chips's stock has dropped by 7.9% in the past month, falling short of the Computer and Technology sector's loss of 2.99% and the S&P 500's gain of 0.53%.
The upcoming earnings release of Synopsys will be of great interest to investors. The company is predicted to post an EPS of $3.68, indicating a 8.55% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $2.44 billion, up 40.31% from the year-ago period.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $14.75 per share and revenue of $9.69 billion. These totals would mark changes of +14.25% and +37.37%, respectively, from last year.
Investors should also pay attention to any latest changes in analyst estimates for Synopsys. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Synopsys is currently sporting a Zacks Rank of #1 (Strong Buy).
In terms of valuation, Synopsys is presently being traded at a Forward P/E ratio of 28.83. This expresses a premium compared to the average Forward P/E of 16.49 of its industry.
Meanwhile, SNPS's PEG ratio is currently 1.8. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Software industry had an average PEG ratio of 1.26 as trading concluded yesterday.
The Computer - Software industry is part of the Computer and Technology sector. With its current Zacks Industry Rank of 95, this industry ranks in the top 39% of all industries, numbering over 250.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. 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.
In the latest close session, Agnico Eagle Mines (AEM - Free Report) was down 3.47% at $137.29. The stock's performance was behind the S&P 500's daily loss of 0.51%. At the same time, the Dow lost 0.2%, and the tech-heavy Nasdaq lost 1.47%.
Shares of the gold mining company have depreciated by 17.78% over the course of the past month, underperforming the Basic Materials sector's loss of 8.52%, and the S&P 500's gain of 0.53%.
The upcoming earnings release of Agnico Eagle Mines will be of great interest to investors. The company's earnings report is expected on July 29, 2026. In that report, analysts expect Agnico Eagle Mines to post earnings of $3.06 per share. This would mark year-over-year growth of 57.73%. Alongside, our most recent consensus estimate is anticipating revenue of $3.94 billion, indicating a 39.96% upward movement from the same quarter last year.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $12.44 per share and a revenue of $16.35 billion, signifying shifts of +50.24% and +37.27%, respectively, from the last year.
Any recent changes to analyst estimates for Agnico Eagle Mines should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 5.78% lower. Agnico Eagle Mines presently features a Zacks Rank of #4 (Sell).
Looking at valuation, Agnico Eagle Mines is presently trading at a Forward P/E ratio of 11.43. This signifies a premium in comparison to the average Forward P/E of 9.55 for its industry.
It's also important to note that AEM currently trades at a PEG ratio of 1.87. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. As the market closed yesterday, the Mining - Gold industry was having an average PEG ratio of 0.64.
The Mining - Gold industry is part of the Basic Materials sector. With its current Zacks Industry Rank of 228, this industry ranks in the bottom 8% of all industries, numbering over 250.
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.
Be sure to follow all of these stock-moving metrics, and many more, on Zacks.com.
In the latest trading session, Deere (DE - Free Report) closed at $598.97, marking a +1.61% move from the previous day. This move outpaced the S&P 500's daily loss of 0.51%. Elsewhere, the Dow saw a downswing of 0.2%, while the tech-heavy Nasdaq depreciated by 1.47%.
Shares of the agricultural equipment manufacturer witnessed a gain of 0.17% over the previous month, beating the performance of the Industrial Products sector with its loss of 0.95%, and underperforming the S&P 500's gain of 0.53%.
The investment community will be closely monitoring the performance of Deere in its forthcoming earnings report. The company is scheduled to release its earnings on August 20, 2026. It is anticipated that the company will report an EPS of $4.82, marking a 1.47% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $10.83 billion, showing a 4.55% escalation compared to the year-ago quarter.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $18.13 per share and revenue of $41.41 billion, indicating changes of -2% and +6.42%, respectively, compared to the previous year.
It is also important to note the recent changes to analyst estimates for Deere. These revisions typically reflect the latest short-term business trends, which can change frequently. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has remained unchanged. Deere currently has a Zacks Rank of #3 (Hold).
In the context of valuation, Deere is at present trading with a Forward P/E ratio of 32.51. This expresses a premium compared to the average Forward P/E of 20.61 of its industry.
One should further note that DE currently holds a PEG ratio of 2.18. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The average PEG ratio for the Manufacturing - Farm Equipment industry stood at 1.46 at the close of the market yesterday.
The Manufacturing - Farm Equipment industry is part of the Industrial Products sector. This industry, currently bearing a Zacks Industry Rank of 32, finds itself in the top 14% echelons of all 250+ industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow DE in the coming trading sessions, be sure to utilize Zacks.com.
