Track market-moving stories before they get noisy

Ethereum is having a tough time at the moment, with sentiment at rock bottom, but underlying supply dynamics paint a different picture.

Ethereum has a “wall of worry” where negative sentiment is meeting staking absorption, reported CryptoQuant on Tuesday.

The Coinbase Premium, a measure of institutional interest, is 230% below its three-month average, while Binance funding rates are deeply negative, signaling caution from US institutions and leveraged traders, it added.

Despite this wall of negativity, ETH’s price has stayed stable over the past week rather than breaking down.

ETH Staking Hits Record 40M Meanwhile, the Ether supply is tightening as stablecoin balances on Binance are draining while staking inflows have surged 65%, “suggesting long-term holders are locking up supply even as short-term traders de-risk,” it stated.

“While traders are shorting or de-risking on Binance, long-term holders are actively locking supply into the staking contract.”

This combination of deep pessimism and a shrinking liquid/exchange supply is a classic pattern, which historically creates fragile conditions for short traders if selling pressure exhausts.

The analysts concluded that monitoring the reversal of the Coinbase Premium will be the primary signal for a shift in this regime.

Ethereum’s Wall of Worry: Negative Sentiment Meets Staking Absorption

“Historically, when speculative sentiment is this depressed while organic supply is being absorbed by staking, it creates a fragile environment for short-sellers.” – By @CryptoOnchain pic.twitter.com/C8XO4Omlmp

— CryptoQuant.com (@cryptoquant_com) June 30, 2026

You may also like: Ethereum Execs Launch Non-Profit to Accelerate Institutional Adoption Bitmine Buys Another 27,000 ETH Despite Market Slump, Nears 5% of Ethereum Supply ‘Engineers, Not Business Operators’: Why Loopring Is Shutting Down Its DEX The staking figures speak for themselves, with a record amount of ETH off the table and locked up.

ETH staking has hit an all-time high of 40 million, which equates to 33% of the entire supply, according to Ultrasound.Money.

Additionally, the validator exit queue is just 9,248 ETH, while more than 2.9 million ETH are in the entry queue.

Bitmine chair Tom Lee said that crypto is a hyper-volatile asset, and some macro headwinds are weighing on ETH, such as markets seeing a Fed hike, Clarity Act purgatory, AI FOMO, and private credit hurting flows.

However, there are also some tailwinds, including the tokenization megatrend, crypto downstream of AI, money becoming digital/software, and peak pain, he said in a recent interview.

ETH Price Outlook Despite these tailwinds, ETH prices remain depressed, with the asset dipping to an intraday low of $1,550 on Tuesday.

There was little momentum during Wednesday morning Asian trading, with ETH lifting to $1,585. The longer it stays at current levels, the greater the chances of another leg down, especially if Bitcoin loses support at $58,000.

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The IOTA Foundation has published its report for the second quarter of 2026, reporting significant progress in the expansion of TWIN. 

The main focus was on the activation of the Starfish consensus protocol, trade projects in Africa and the United Kingdom, and a stronger organizational alignment toward institutional use cases.

The IOTA Foundation is a non-profit organization that developed IOTA, a distributed ledger network. It was originally built for machine-to-machine transactions and IoT data integrity, with its native token IOTA trading on major crypto exchanges.

IOTA focuses on TWINAccording to the foundation, its development, research, design, and product teams have been brought closer together. As recently announced by co-founder Dominik Schiener, the IOTA Foundation intends to focus more strongly on TWIN following an organizational restructuring and layoffs, rather than continuing to pursue several separate initiatives. The quarterly report states,

“The Foundation is fully focused on supporting and scaling TWIN...By moving past isolated, general-purpose blockchain lines, we’re concentrating our talent on building a resilient, compliant, and production-grade network for the global economy."

The most important technical milestone was the activation of the Starfish consensus protocol on April 23. The upgrade is designed to improve the stability of the IOTA mainnet under real-world network conditions and ensure continuous operation even with limited connectivity.

At the same time, the team completed Protocol Version 29. This version includes additional security mechanisms for smart contracts. The core development of Starfish-Speed was also completed, with the aim of reducing latency.

IOTA also reported progress on the P-COOL transaction flow. The approach is intended to deliver higher performance while requiring roughly half the resources previously needed. The report states:

“Q2 was a success in making IOTA more capable for the people building on it and cheaper for the people running it...Core storage optimizations have successfully reduced the active node data footprint by approximately one-third in testing environments, significantly lowering long-term infrastructure and maintenance costs for operators."

TWIN expands in Africa and the United KingdomAt the application level, the Foundation primarily focused on trade infrastructure. Together with TradeMark Africa, the team worked on a business and fee model for deployment in Kenya.

Implementation of the ADAPT initiative also began in the second quarter. Developed together with the AfCFTA Secretariat, the Tony Blair Institute for Global Change, and the World Economic Forum, the project aims to enable digital identities, data exchange, and digital payments initially in Kenya, Nigeria, and Morocco.

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“Kenya, Nigeria, and Morocco have been selected as the first countries to implement ADAPT - the Africa Digital Access and Public Infrastructure for Trade initiative," the company wrote. 

For the Trade Logistics Information Pipeline (TLIP), version 1.3.9 achieved a 95% success rate across all active test profiles, according to the report. Document channels between authorities in Kenya were also successfully tested from node to node.

In the United Kingdom, TWIN secured five key supporters for a letter of intent regarding the International Supply Network. Further integrations with port authorities, freight forwarders, and trade organizations are currently being prepared.

The TWIN Foundation recently announced that more than 30 countries are expected to go live by 2030. In Argentina, IOTA technology has also been implemented in a government project for transplant processes.

Trending on TheStreet RoundtableXRP eys bigger move as Binance open interest hits 2026 highMark Cuban has a blunt response to Coinbase CEORipple wants AI agents to pay with XRP and RLUSDNpm downloads point to growing developer activity around TWINBeyond the official country projects, there are also signs that TWIN is attracting more attention. On the Node Package Manager (npm) package platform, key components of the framework have recently been downloaded significantly more often.

https://www.npmjs.com/package/@twin.org/dlt-iota?activeTab=versions

The core package currently reaches 18,222 installations within seven days. The IOTA-specific module, which connects the framework to IOTA technology, records 3,711 weekly installations.

The statistics show the latest npm download figures for the IOTA package used for TWIN integration.

These figures are not direct proof of active users or companies operating in production. However, they show how often TWIN’s technical components are being installed in development, testing, or build environments.

For a specialized framework in the field of digital trade infrastructure, the current level is nevertheless notable. It suggests that TWIN is not only being expanded strategically, but is also gaining increasing attention in technical practice.

A month has gone by since the last earnings report for Ulta Beauty (ULTA - Free Report) . Shares have lost about 3.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Ulta due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Ulta Beauty Lifts FY26 View as Q1 Earnings Beat, Comps Rise 5.3%Ulta Beauty reported first-quarter fiscal 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. The company delivered double-digit sales and earnings growth, driven by broad-based strength across channels and product categories, along with contributions from the Space NK acquisition.

The beauty retailer reported first-quarter fiscal 2026 earnings per share of $7.74, beating the Zacks Consensus Estimate of $6.90. The bottom line increased 15.5% from the year-ago quarter’s reported figure of $6.70.

Net sales rose 11.1% year over year to $3,163.9 million and surpassed the Zacks Consensus Estimate of $3,113 million. Growth was primarily driven by higher comparable sales, contributions from the Space NK acquisition and sales from new stores. Comparable sales increased 5.3%, supported by a 3.7% rise in average ticket and a 1.6% jump in transactions.

ULTA’s Quarterly Results: Key Metrics & InsightsUlta Beauty’s gross profit increased 13.8% year over year to $1,267.6 million. Gross margin expanded 100 basis points to 40.1% from 39.1%, primarily due to lower inventory shrink and higher merchandise margin. Improvements in inventory productivity and favorable category mix also aided profitability.

Selling, general and administrative (SG&A) expenses increased 14.6% to $814.7 million from $710.6 million reported in the prior-year quarter. As a percentage of net sales, SG&A expenses rose to 25.8% from 24.9%. The increase was primarily due to the acquisition of Space NK, strategic enterprise investments and higher store-related expenses, partially offset by leverage in advertising expenses.

Operating income surged 11.6% to $448.3 million from $401.8 million in the year-ago quarter. As a percentage of net sales, operating income improved slightly to 14.2% from 14.1% in the prior-year period.

ULTA’s Category Performance Remains Broad-BasedPerformance was broad-based across all major categories in the quarter. Fragrance remained the strongest category, delivering high-teens comparable sales growth, driven by newness from luxury brands such as YSL, Carolina Herrera, Valentino and Balmain, as well as innovation from exclusive fragrance brand NOYZ.

Haircare generated high-single-digit comparable growth, supported by strength in prestige haircare, new and exclusive brands, and healthy demand for hair-treatment products.

Makeup posted low-single-digit comparable sales growth, aided by prestige makeup performance and the successful launch of Rare Beauty. Skincare and wellness delivered low-single-digit comparable growth, benefiting from prestige skincare, mass skincare and continued momentum in supplements and self-care products. Services revenues increased in the mid-single-digit range, supported by strong member engagement.

Ulta Beauty’s Strategic Initiatives Gain TractionUlta Beauty continued to advance its “Ulta Beauty Unleashed” strategy during the quarter. The company launched TikTok Shop, positioning itself as a key beauty discovery platform and strengthening engagement with younger consumers. Ulta Beauty also added more than 20 new brands during the quarter, expanded its marketplace assortment to more than 325 brands and 8,000 SKUs and grew its loyalty program to approximately 46.9 million members, up 4% year over year.

The company continued expanding its international presence through Space NK, Mexico and the Middle East. Management also announced plans for a highly experiential flagship location in Times Square, NY, which is expected to open in late 2027.

ULTA’s Financial Health Snapshot & Store UpdateThe company ended the quarter with cash and cash equivalents of $166.3 million and short-term investments of $55 million. Merchandise inventories increased 12.5% year over year to $2.4 billion. Short-term debt totaled $144.9 million, while stockholders’ equity stood at $2.58 billion at quarter-end.

Net cash provided by operating activities was $261.9 million in the first quarter. Capital expenditures totaled $58.3 million, primarily related to investments in new and existing stores.

During the quarter, Ulta Beauty repurchased 958,323 shares of its common stock for $555 million. As of May 2, 2026, approximately $1.3 billion was available under the company’s $3 billion share buyback authorization announced in October 2024.

Ulta Beauty opened 16 net new stores in the United States and one net new Space NK store during the quarter. The company ended the period with 1,521 Ulta Beauty stores and 87 Space NK stores.

What to Expect From ULTA in FY26?Following its better-than-expected first-quarter performance, Ulta Beauty updated its fiscal 2026 outlook.

The company continues to expect net sales growth of 6% to 7% and comparable sales growth of 2.5% to 3.5%. Management now anticipates operating income growth of 6.5% to 9% compared with its previous expectation of 6% to 9%.

Ulta Beauty raised its fiscal 2026 earnings per share guidance to the range of $28.36-$28.80 from the prior range of $28.05-$28.55.

How Have Estimates Been Moving Since Then?It turns out, estimates review have trended downward during the past month.

VGM ScoresAt this time, Ulta has a great Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. Following the exact same course, the stock was allocated a score of B on the value side, putting it in the second quintile for this investment strategy.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Ulta has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerUlta is part of the Zacks Retail - Miscellaneous industry. Over the past month, Bath & Body Works (BBWI - Free Report) , a stock from the same industry, has gained 24.1%. The company reported its results for the quarter ended April 2026 more than a month ago.

Bath & Body Works reported revenues of $1.38 billion in the last reported quarter, representing a year-over-year change of -3.2%. EPS of $0.32 for the same period compares with $0.49 a year ago.

For the current quarter, Bath & Body Works is expected to post earnings of $0.23 per share, indicating a change of -37.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.7% over the last 30 days.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Bath & Body Works. Also, the stock has a VGM Score of A.

Despite broader market uncertainty, Cardano founder Charles Hoskinson has emphasized that the network’s underlying fundamentals remain strong.

He made this known in a recent update to Cardano enthusiasts. According to Hoskinson, network reliability remains one of the most important indicators of blockchain health, and Cardano continues to excel in that area. 

He stressed that the network has never been hacked, while block production continues uninterrupted and at a consistent pace. In his view, these operational metrics demonstrate that Cardano’s core infrastructure remains dependable regardless of short-term market sentiment or price fluctuations. 

Update https://t.co/VGYNjGrBl0

— Charles Hoskinson (@IOHK_Charles) June 29, 2026

Cardano Prepares for Its Largest Upgrade Yet Meanwhile, Hoskinson revealed that Cardano is approaching the largest upgrade in its history. He suggested that the network is entering a major new phase characterized by significant technological advancements and scalability improvements.

The upcoming upgrade is expected to strengthen Cardano’s infrastructure and further expand its capabilities as the ecosystem matures. Interestingly, he highlighted the ongoing progress surrounding Cardano’s RealFi. This project aims to bridge decentralized finance (DeFi) with the real-world economy by putting idle on-chain liquidity to work in lending and credit markets.

According to Hoskinson, RealFi is now transitioning from concept to implementation. Notably, he disclosed that the RealFi testnet is scheduled to launch on July 6, with a mainnet deployment expected shortly afterward.

The milestone represents a significant step toward Cardano’s long-standing mission of bringing financial services to unbanked populations while connecting blockchain liquidity with real-world economic activity.

Bitcoin DeFi and Midnight Gain Momentum on Cardano In addition, Hoskinson pointed to the growing momentum behind Bitcoin decentralized finance on Cardano through the Pogun initiative.

He believes Bitcoin DeFi could unlock access to a substantially larger pool of liquidity and users by enabling BTC holders to participate in decentralized financial services within the Cardano ecosystem without leaving the Bitcoin economy entirely.

Another initiative receiving considerable attention is Midnight, Cardano’s privacy-focused partner chain, according to Hoskinson.

Hoskinson described 2026 as the “beta year” for Midnight, explaining that the primary objective has been to prepare the network for broader public adoption. He added that development is progressing at an impressive pace and argued that Midnight’s rollout validates Cardano’s partner-chain model.

According to Hoskinson, the project’s progress demonstrates that specialized chains can operate alongside Cardano while benefiting from its broader ecosystem and security model.

Hoskinson Pushes Back Against “Cardano Is Dead” Narrative Hoskinson’s comments come amid growing criticism that Cardano is losing relevance following recent price underperformance and governance tensions.

For context, ADA continues to trade below the $0.20 psychological level and remains the 15th-largest cryptocurrency by market capitalization on CoinMarketCap. Its weak price performance, combined with ongoing governance tensions and the departure of key entities from Cardano, has fueled claims that the project is dead. However, Charles Hoskinson has rejected this narrative.

He argued that Cardano would continue to survive and evolve even without his involvement. Furthermore, he maintained that market sentiment does not determine a project’s long-term future and that a token’s trajectory can change rapidly.

Strong Fundamentals Continue to Drive the Ecosystem Forward Ultimately, Hoskinson reiterated that Cardano’s long-term fundamentals remain intact. He pointed to continued progress across key initiatives, including Midnight, RealFi, and Bitcoin DeFi, as evidence that the ecosystem continues to expand despite temporary setbacks and negative sentiment.

For Hoskinson, these developments reinforce the argument that Cardano’s value lies not in short-term price performance but in the steady growth of its technology and real-world utility.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

Key Takeaways Communications Solutions generated $4.53B in sales, up 88% and about 60% of APH revenues.AI-related IT datacom demand drove 99%-dollar growth and 81% organic growth for APH.APH expects second-quarter 2026 sales of $8.1B-$8.2B and adjusted EPS of $1.14-$1.16. Amphenol’s (APH - Free Report) Communications Solutions segment is becoming the company’s primary growth engine. In first-quarter 2026, the segment generated $4.53 billion in sales, up 88% year over year and 47% organically, making up about 60% of APH’s revenues. This growth was driven primarily by strong demand in IT datacom, especially AI-related applications, along with strength in industrial markets and contributions from acquisitions.

Moreover, the Communications Solutions segment’s operating income rose to $1.39 billion from $660.8 million reported in the year-ago quarter. Operating margin expanded to 30.6% from 27.4%, driven by higher volumes, although recent acquisitions are still somewhat margin-dilutive. The segment is also benefiting from Amphenol’s acquisition strategy. The CommScope deal added fiber optic interconnect capabilities for IT datacom and communications networks, as well as building infrastructure connectivity products. This strengthens Amphenol’s exposure to AI data centers, upgraded networks and broader connectivity demand.

Amphenol management’s comments reinforce the growth outlook. IT datacom represented 41% of sales, with revenues rising 99% in dollar terms and 81% organically, driven by AI-related products. With CommScope, Amphenol now has a broader portfolio of high-speed copper, power and fiber optic interconnect products, which management sees as critical for next-generation AI systems. The segment is driving Amphenol’s prospects by combining AI data center demand, network upgrades, acquisition-led portfolio expansion and rising margins. This gives APH a stronger growth profile and better earnings leverage, although integration costs and acquisition-related margin dilution remain near-term factors to watch.

For the second quarter of 2026, APH expects sales of $8.1-$8.2 billion. Adjusted earnings are projected at $1.14-$1.16 per share for the second quarter.

How Rivals Stack Up Against APHAmphenol is increasingly challenged by major rivals such as TE Connectivity (TEL - Free Report) and Bel Fuse (BELFB - Free Report) .

TE Connectivity remains Amphenol’s most formidable rival, matching APH across connectors, sensors and advanced interconnect solutions spanning automotive, industrial, aerospace and high-speed communications. With a vast global footprint, deep customer relationships and a broad product portfolio, TE Connectivity leverages targeted acquisitions and strong AI and EV design wins, especially in hyperscale platforms, to reinforce its leadership and keep pace with APH in the accelerating communications race.

Bel Fuse’s outlook is increasingly supported by rising AI infrastructure spending and the recovery in enterprise networking demand. The Industrial Technology & Data Solutions segment continues to benefit from healthy demand for networking and data infrastructure, with improving momentum in data center connectivity and high-performance computing applications. BELFB is seeing robust bookings from AI-focused customers and enterprise networking clients as hyperscalers invest in next-generation AI architectures, boosting demand for its power conversion, power protection and high-speed interconnect solutions.

APH’s Share Price Performance, Valuation & EstimatesAmphenol’s shares have surged 27.5% year to date, outperforming the broader Zacks Computer & Technology sector’s return of 18.2%.

APH Stock’s Price Performance
Image Source: Zacks Investment Research

Amphenol shares are trading at a premium, as suggested by a Value Score of D. In terms of the forward 12-month price-to-earnings (P/E), APH is trading at 33.18X, higher than the sector’s 24.14.

APH Stock Is Overvalued
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Amphenol’s 2026 earnings is pegged at $4.76 per share, unchanged over the past 30 days. The figure indicates a 42.51% jump year over year.
 

APH currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

TRON could be emerging as one of the strongest Layer 1 contenders heading into Q3.

From a technical perspective, TRX closed June down 10.35%, largely in line with the broader market’s risk-off move that erased $500 billion from the market. Even so, its relative strength stood out.

Despite Solana benefiting from renewed interest in tokenized assets following the SPCX launch, TRX still outperformed SOL.

That resilience becomes even more compelling when viewed alongside TRON’s on-chain data. As the chart below shows, the network processed 385.77 million transactions and recorded 26.97 million active accounts in June, both new monthly records, according to Lookonchain.

Source: X Notably, the momentum was just as evident on a daily basis. 

On the 10th of June, TRON processed 14.55 million transactions and recorded 5.8 million active accounts, both all-time daily highs, according to Tronscan. With activity reaching record levels across the board, many in the market are calling June Tron’s “strongest month” on record. 

And it doesn’t look like a one-off spike.

According to DeFiLlama, TRON [TRX] has once again pulled ahead of Ethereum [ETH] in USDT transfer volume. The network now hosts over $86 billion in USDT, more than any other blockchain, reinforcing Tron’s role as one of crypto’s largest settlement layers. 

With the market starting to tilt back into a risk-on phase, TRON looks well-positioned to extend this momentum into the second half of the year.

In that context, Tron’s recent quantum upgrade also stands out as a forward-looking move, strengthening its positioning among competing L1s as the cycle develops. 

Quantum resistance adds a new layer to TRON’s utility story  As a Layer 1 network, TRON’s growth is no longer just about on-chain activity.

The focus is shifting toward long-term security, with quantum resistance becoming a major trend across L1s in 2026. Networks like Solana [SOL] have already sparked interest with their post-quantum roadmap.

TRON now looks to be following the same direction. 

Notably, the TRON Nile Testnet has launched GreatVoyage-v4.8.2-PQ1-build1, adding support for post-quantum signatures. The upgrade includes Falcon-512 and ML-DSA-44, covering transactions, block production, node communication, and contract verification. It is currently live on the Nile Testnet and still needs governance approval before any mainnet rollout.

Source: X From an investor’s point of view, this move signals TRON is getting ahead of the curve on long-term security.

Sure, it’s still in the testnet phase, but the push into post-quantum infrastructure adds a stronger long-term narrative to TRON’s ecosystem. The timing also looks intentional, given TRX’s strong on-chain activity and steady stablecoin flows, which continue to reinforce network usage and demand. 

Hence, TRON’s edge is no longer just about technical. Instead, it’s increasingly tied to its fundamental roadmap as well, putting the network in a relatively strong position heading into H2.

Final Summary

A month has gone by since the last earnings report for Donaldson (DCI - Free Report) . Shares have added about 3.9% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Donaldson due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.

Donaldson's Q3 Earnings & Revenues Top Estimates, Increase Y/YDonaldson reported third-quarter fiscal 2026 (ended April 30, 2026) adjusted earnings of $1.06 per share, which topped the Zacks Consensus Estimate of $1.05. The bottom line was up 7.1% on a year-over-year basis.

Revenue ResultsTotal revenues of $995.1 million surpassed the Zacks Consensus Estimate of $979 million. The top line increased 5.8% year over year.

Region-wise, Donaldson’s net sales in the United States/Canada increased 1.5% year over year to $427.1 million. Net sales increased 11.5% to $289.3 million in Europe, the Middle East and Africa.  Latin America generated net sales of $105.9 million, reflecting an increase of 4.4%. Also, net sales in the Asia Pacific improved 9.2% to $172.8 million.

Donaldson reports revenues under three segments, namely Mobile Solutions, Industrial Solutions and Life Sciences.

A brief snapshot of segmental sales is provided below.

The Mobile Solutions segment’s (accounting for 63.3% of net sales) sales were $629.9 million, indicating a year-over-year increase of 8.1%. Sales rose 8.8% in Off-Road and increased 5.2% in On-Road businesses during the quarter. Aftermarket sales improved 8.1% year over year.

Revenues generated from the Industrial Solutions segment (28.3%) were $281.7 million, down 0.6% year over year. Industrial Filtration Solutions' sales increased 2.3% year over year. Sales decline of 13.5% in the Aerospace and Defense businesses affected the results.

Revenues generated from the Life Sciences segment (8.4%) were $83.5 million, up 12.7% year over year. The results benefited from growth in new equipment volume in the Food & Beverage and Disk Drive businesses.

Donaldson’s Margin ProfileIn the fiscal third quarter, Donaldson’s cost of sales increased 7% year over year to $661.7 million. Gross profit increased 3.6% to $333.4 million. The gross margin of 33.5% declined 70 basis points due to operating inefficiencies associated with production shifts and costs related to footprint optimization initiatives. Selling, general and administrative expenses were $158.9 million, up 4.3% year over year.

Operating expenses were down 24% year over year to $178.1 million. Operating profit surged 77.7% to $155.3 million. The adjusted operating margin was 16.6%, up 30 bps year over year.

The adjusted effective tax rate was 23.8% compared with 22.1% in the year-ago quarter.

Balance Sheet & Cash FlowExiting the fiscal third quarter, Donaldson’s cash and cash equivalents were $204.1 million compared with $180.4 million in the fourth quarter of fiscal 2025. Long-term debt was $591.6 million compared with $630.4 million in the fourth quarter of fiscal 2025.

In the fiscal third quarter, the company generated net cash of $135.4 million from operating activities, indicating an increase of 54.4% year over year. Capital expenditure (net) totaled $23.8 million compared with $14.7 million in the year-ago fiscal quarter. Free cash flow increased 52.9% to $111.6 million.

It used $108.5 million to repurchase stocks and $104 million to pay out dividends during the first nine months of fiscal 2026.

Donaldson’s FY26 OutlookFor fiscal 2026 (ending July 2026), Donaldson expects adjusted earnings per share (EPS) to be in the range of $3.94-$4.01 compared with $3.68 in fiscal 2025. Organic sales are anticipated to increase 3-5% from the fiscal 2025 level.

On a segmental basis, Mobile Solutions’ sales are expected to increase 3.5-5.5% from the fiscal 2025 level. Industrial Solutions’ sales are envisioned to increase in the range of 0-2% from the year-ago figure. The company forecasts its Life Sciences segment’s sales to increase in the 9-11% range.

Interest expenses are predicted to be approximately $26 million, while other income is projected to be in the range of $17-$19 million. The effective tax rate is anticipated to be between 22% and 24%.

Capital expenditure is expected to be between $60 million and $75 million. Free cash flow conversion is anticipated to be in the range of 85-95%. Donaldson expects to repurchase 1.2% of its outstanding shares during the fiscal year.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in fresh estimates.

VGM ScoresAt this time, Donaldson has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. However, the stock has a grade of C on the value side, putting it in the middle 20% for this investment strategy.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Donaldson has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Key Takeaways Darden enters fiscal 2027 with broader growth beyond Olive Garden and positive same-restaurant sales.DRI plans 75-80 openings and about $875M in capital spending for units, technology and supply chain.Darden expects about 3% inflation as pricing below inflation may keep margin expansion constrained. Darden Restaurants (DRI - Free Report) enters fiscal 2027 with a balanced investment setup. The company is still benefiting from positive same-restaurant sales, steady development activity and rising contributions from brands beyond Olive Garden.

The offset is clear. Inflation, cautious consumer spending and limited international scale leave investors weighing operating execution against margin and demand risks.

Darden Brands Drive a More Balanced StoryOlive Garden remains the anchor of Darden’s business, accounting for 42.3% of fiscal 2026 revenues. That size gives the company a major traffic and earnings base in casual dining, supported by a familiar brand and broad value positioning.

The portfolio is becoming less dependent on one chain. Olive Garden represented about 50% of sales in fiscal 2019, while LongHorn Steakhouse, Fine Dining and Other Business now carry a larger share of revenues. That shift gives Darden more ways to grow earnings across different dining occasions and consumer groups.

DRI Finds Momentum in LongHorn and Olive GardenLongHorn Steakhouse is one of Darden’s clearest growth drivers. Same-restaurant sales rose 7.2% in fiscal 2026 and accelerated to 9.5% in the fourth quarter, supported by food quality, service execution and a value proposition that is not built mainly on promotions.

Olive Garden continues to support the broader story through menu innovation, affordability and guest traffic. Lighter portion offerings and protein-forward items have widened customer choice while keeping the brand focused on value, even though the newer menu created a modest check mix headwind.

Darden Pushes Digital and New Unit GrowthDigital initiatives are adding another layer to the long-term case. Olive Garden’s Uber Direct partnership is generating incremental orders and attracting younger and higher-income customers, while Yard House is seeing encouraging early delivery results.

Restaurant development remains central to growth. Darden opened 71 restaurants in fiscal 2026 and expects 75-80 openings in fiscal 2027. The company also plans about $875 million in capital spending, reflecting continued investment in new units, technology and supply-chain capabilities.

Chipotle Mexican Grill (CMG - Free Report) offers investors another restaurant growth benchmark, particularly for traffic, digital access and unit development comparisons. Restaurant Brands International Inc. (QSR - Free Report) provides a different reference point, with a franchised, multi-brand model that contrasts with Darden’s company-owned restaurant base.

DRI Still Faces Margin and Demand PressureCost pressure remains the main limit on the margin story. Darden expects total inflation of about 3% in fiscal 2027, with beef inflation likely highest in the first quarter before easing later in the year.

Management’s choice to price below inflation is strategically consistent with protecting value perception and traffic. The trade-off is that margin expansion could remain constrained if commodity or labor costs stay elevated.

Demand risk also matters. Full-service restaurants depend on discretionary spending, and cautious consumer sentiment can pressure traffic if employment, fuel prices or overall confidence weaken.

Darden’s relatively small international presence is another constraint. Franchise partners are opening more restaurants outside North America, but the company still depends heavily on a mature domestic market.

Darden Signals a Mixed Stock SetupDarden’s stock setup reflects a company with good execution but not a clean all-clear signal. Same-restaurant sales growth, LongHorn’s momentum, Olive Garden’s scale and new restaurant development support the earnings growth case, while inflation and demand sensitivity keep the risk side relevant.

The stock currently carries a Zacks Rank #3 (Hold). That rank points to a more neutral near-term earnings-revision backdrop rather than a decisive buy signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Darden has a VGM Score of B, supported by a Growth Score of A, a Value Score of C and a Momentum Score of D. The Growth Score lines up with a company still expanding sales and earnings, while the Value and Momentum readings suggest less support from valuation upside or recent price trends.

For investors, that combination fits a balanced view. DRI has credible operating drivers and a diversified brand base, but cost pressures and weaker momentum keep the stock in hold territory for now.

Image: Bigstock

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AI infrastructure and data center investments remain key growth drivers for the Zacks Building Products – Heavy Construction industry in 2026, supported by rising demand for cloud computing, AI workloads, fiber connectivity and utility upgrades. Strong federal and state funding for transportation, water and energy infrastructure, along with investments in grid modernization, power transmission, natural gas and industrial projects, is further expanding the industry's multiyear project pipeline and improving revenue visibility. Within this favorable backdrop, companies such as EMCOR Group, Inc. (EME - Free Report) , MasTec (MTZ - Free Report) , Dycom Industries (DY - Free Report) and Tutor Perini Corporation (TPC - Free Report) are well positioned, benefiting from diversified capabilities, technical expertise and disciplined execution.

However, persistent skilled labor shortages continue to constrain project execution, increase wage costs and intensify competition for qualified workers. At the same time, larger and more complex projects, inflationary pressures, evolving project scopes, permitting delays and funding uncertainties are placing greater pressure on margins, making disciplined bidding, cost control and execution increasingly important for sustaining profitability.

Industry Description The Zacks Building Products - Heavy Construction industry consists of mechanical and electrical construction, industrial and energy infrastructure, as well as building service providers. This industry comprises heavy civil construction companies that specialize in the building and reconstruction of transportation projects, including highways, roads, bridges, airfields, ports and light rail. The companies serve commercial, industrial, utility and institutional clients. The industry players are engaged in the engineering, construction and maintenance of communications infrastructure, oil and natural gas pipelines, as well as processing facilities for energy and utility industries. These firms are also engaged in mining and dredging services in the United States and internationally.

4 Trends Shaping the Future of the Heavy Construction Industry AI Infrastructure & Data Center Demand Drive Growth: AI infrastructure remains one of the strongest tailwinds for the U.S. Heavy Construction industry in 2026. Rapid growth in cloud computing, AI workloads and digital transformation is fueling demand for data centers, which require large-scale site work, electrical systems, mechanical systems, cooling infrastructure, fiber connectivity and utility upgrades. These projects are also expanding opportunities across adjacent areas such as grid connections, substations, concrete work and long-haul fiber networks. Rising demand for low-latency connectivity between data centers is further supporting telecom and fiber construction. Given the multiyear nature of these investments, contractors with scale, skilled labor and complex project execution capabilities are likely to benefit from strong backlog visibility and sustained bidding activity.

Infrastructure, Power & Energy Spending Stay Strong: Public infrastructure and energy-related construction remain major growth drivers for 2026. Federal and state spending continues to support highways, bridges, transit systems, airports, ports, water and wastewater projects. At the same time, rising electricity demand is driving investment in transmission lines, substations, grid hardening and reliability upgrades. Energy security needs are also supporting natural gas, LNG, power generation and industrial infrastructure projects. These trends are creating a broad-based construction pipeline beyond data centers. Large public and energy projects typically span several years, giving the industry better revenue visibility. The combination of aging infrastructure, electrification, industrial reshoring and energy demand should keep project activity elevated through 2026.

Labor Shortages Remain a Key Constraint: Skilled labor availability remains one of the biggest headwinds for the U.S. heavy construction industry in 2026. Demand is rising across data centers, utilities, transportation, energy and public infrastructure at the same time, increasing competition for qualified workers. Large, complex projects require experienced electricians, mechanical workers, civil crews, project managers and safety professionals. A tight labor market can limit how quickly contractors scale, delay project schedules and raise wage costs. Companies are investing more in training, recruitment and workforce development, but labor supply remains a structural issue. This is especially important as customers seek execution certainty on multiyear projects and may prefer contractors that can reliably secure skilled crews.

Project Complexity, Costs & Timing Pressure Margins: Despite strong demand, margin pressure remains a key industry headwind. Heavy construction projects are becoming larger and more complex, especially in AI infrastructure, power, transit and public works. These projects often involve evolving designs, changing scopes, tight schedules and coordination across several trades. Contract mix can also affect profitability, as cost-plus, construction management and early-stage design projects may carry lower margins than traditional fixed-price work. Inflation in materials, equipment and subcontractor costs further increases the need for disciplined bidding and contract management. Permitting delays, funding approvals and customer timing decisions can also shift revenue recognition. As a result, execution discipline remains critical to converting strong demand into profitable growth.

Zacks Industry Rank Indicates Bright Prospects The Zacks Building Products - Heavy Construction industry is a nine-stock group within the broader Zacks Construction sector. The industry currently carries a Zacks Industry Rank #38, which places it in the top 15% of more than 250 Zacks industries.

The group’s Zacks Industry Rank, which is basically the average of the Zacks Rank of all the member stocks, indicates bullish near-term prospects. 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.

The industry’s positioning in the top 50% of the Zacks-ranked industries is a result of a higher earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are gradually gaining confidence in this group’s earnings growth potential. Since April 2026, the industry’s earnings estimates for 2027 have increased to $11.26 per share from $11.06.

Before highlighting a few stocks worth considering for your portfolio, let’s first review the industry’s recent stock market performance and valuation trends.

Industry Outperforms Sector & the S&P 500 The Zacks Building Products - Heavy Construction industry has performed better than the broader Zacks Construction sector and the Zacks S&P 500 Composite over the past year.

Stocks in this industry have collectively gained 79% compared with the broader sector’s 22.8% rise. Meanwhile, the S&P 500 has jumped 22.9% in the said period.

One-Year Price Performance

Industry's Current Valuation On the basis of the forward 12-month price-to-earnings ratio, which is a commonly used multiple for valuing heavy construction stocks, the industry is currently trading at 27.74X versus the S&P 500’s 21.13X and the sector’s 22.34X.

Over the past five years, the industry has traded as high as 28.44X, as low as 12.90X and at a median of 17.61X, as the chart below shows.

Industry’s P/E Ratio (Forward 12-Month) Versus S&P 500

Industry’s P/E Ratio (Forward 12-Month) Versus Sector

4 Heavy Construction Stocks to Buy Now Here, we have discussed four stocks from the industry that have solid growth potential.

MasTec: Based in Coral Gables, FL, this is a leading infrastructure construction company operating mainly throughout North America. MasTec's growth outlook is supported by strong, long-duration infrastructure investment across multiple end markets. The company expects sustained demand from AI-driven data center construction and connectivity, electric grid modernization, power transmission, broadband expansion under the BEAD program, renewable energy, gas-fired power generation and natural gas pipeline infrastructure. Record backlog, improving book-to-bill ratios and growing customer preference for turnkey project execution provide strong revenue visibility. Management also highlighted increasing opportunities in data center construction management, strategic acquisitions and expanding self-perform capabilities, positioning MasTec for sustained growth through 2026, 2027 and beyond.

MasTec, currently carrying a Zacks Rank #1 (Strong Buy), has gained 130.7% over the past year. Earnings estimates for 2026 have increased to $8.90 from $8.60 per share over the past 60 days. Earnings for 2026 are expected to grow 35.9% from a year ago. MTZ surpassed earnings estimates in all the trailing four quarters, with the average surprise being 15.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Price and Consensus: MTZ

Dycom: Headquartered in Palm Beach Gardens, FL, this is a specialty contracting firm operating in the telecom industry. Dycom's growth outlook remains strong, supported by accelerating investments in digital infrastructure and fiber connectivity. The company continues to benefit from expanding fiber-to-the-home deployments, rising long-haul and middle-mile fiber builds, and robust data center construction driven by hyperscale demand. Management highlighted record backlog growth, longer-duration customer contracts that improve revenue visibility and geographic expansion across communications markets. The acquisition of National Technology Integrators further strengthens Dycom's data center and low-voltage capabilities while creating cross-selling opportunities. Additionally, the gradual rollout of the BEAD broadband program is expected to provide incremental growth from calendar 2027 onward, reinforcing the company's multiyear growth trajectory.

Dycom, currently carrying a Zacks Rank #1, has gained 90.4% over the past year. Earnings estimates for fiscal 2027 have increased to $16.35 per share from $15.94 per share over the past 30 days. The estimated value for fiscal 2027 is expected to increase 36.6% from the previous year. DY surpassed earnings estimates in all the trailing four quarters, with the average surprise being 25%. Again, it carries an impressive VGM Score of B.

Price and Consensus: DY

EMCOR: Based in Norwalk, CT, EMCOR provides electrical and mechanical construction and related services in the United States and the United Kingdom. EMCOR has been gaining from sustained demand across mission-critical infrastructure markets and a record remaining performance obligation backlog that provides solid revenue visibility. The company continues to benefit from robust investments in AI-driven data centers, cloud infrastructure, healthcare, institutional facilities, water and wastewater projects, manufacturing and industrial construction, as well as the recovery in warehousing and logistics. Management also expects long-term growth from geographic expansion, disciplined acquisitions, expanded prefabrication capabilities, workforce development and increasing higher-margin service and maintenance work, while maintaining disciplined project execution and contract management.

EMCOR, currently carrying a Zacks Rank #1, has gained 48.5% over the past year. Earnings estimates for 2026 have increased to $29.37 per share from $28.99 per share over the past 30 days. Earnings for 2026 are expected to grow 13.5% from a year ago. EMCOR surpassed earnings estimates in three of the trailing four quarters and missed on one occasion, with the average surprise being 10.4%.

Price and Consensus: EME

Tutor Perini: Based in Sylmar, CA, this company is a construction company serving public and private clients. Tutor Perini has been benefiting from its record $19.8 billion backlog (as of first-quarter 2026), including nine recently secured mega projects that provide multi-year revenue visibility. Management expects double-digit revenue growth in 2026 and even stronger earnings in 2027 as these higher-margin projects ramp up. The company also sees a robust pipeline of large bidding opportunities across transportation, healthcare, military infrastructure, hospitality and gaming projects in the United States and the Indo-Pacific region. Incremental work on existing contracts, favorable macroeconomic tailwinds, disciplined bidding for higher-margin projects and strong public and private infrastructure funding further strengthen its long-term growth prospects.

Tutor Perini, currently carrying a Zacks Rank #2 (Buy), has gained 67.5% over the past year. Earnings estimates for 2026 have risen to $5.18 from $4.72 per share over the past 60 days. Earnings for 2026 are expected to grow 20.8% from a year ago. TPC surpassed earnings estimates in all the trailing four quarters, with the average surprise being 107.4%. Again, it carries an impressive VGM Score of A.

Price and Consensus: TPC

Published in construction

Table of contents

Zcash is at $422. Up 6% today. One of the strongest coins in the top 20.

And it is not alone. Monero is green. Bitcoin Cash is up 9% on the week. The privacy corner of crypto, ignored for months, just woke up.

But before anyone gets carried away, ZEC has a complicated story this year and one big test coming this month. Let me give you both sides, fast.

The move Zcash just did something technically meaningful: it crossed back above its 200-day moving average near $380 (live ZEC price on CoinGecko). That average is the line that separates coins in long-term downtrends from coins with a pulse. Reclaiming it after weeks below is the first structural positive ZEC has printed in a while.

The chart now projects a possible double-bottom, the pattern you get when sellers fail to make a new low twice. Momentum is turning: bearish pressure is fading, the RSI is ticking up, and the MACD is setting up for a bullish crossover. Textbook early-recovery signals.

The gate above is $454, the 50-day average. Clear that, and analysts see room toward $520. Below, $356 is the support that has to hold, guarding the round $300.

Why privacy, why now The rotation makes sense if you think about it. The market is rebounding, Bitcoin just reclaimed $60,000, and traders hunting for laggards with a narrative landed on privacy coins, a sector that spent months out of favor while everyone chased AI tokens and Solana.

Zcash is the most recognizable name in that sector, sitting in the top 20 with an $8 billion-class market cap earlier this year. When privacy sentiment turns, ZEC is where the money goes first. Add Monero and Bitcoin Cash both green this week, and you have a genuine sector move, not a one-coin squeeze.

Now the part you need to know Here is the honest half, because ZEC’s 2026 has been rough. In early June, developers disclosed a four-year-old vulnerability in Zcash’s shielded pool. It was patched within days and no exploitation was confirmed. But the disclosure alone crushed trust and helped crash the price around 40%. That is the hole ZEC is still climbing out of.

There is also whale behavior to watch. Reports through late June flagged large holders closing positions and reducing risk, the kind of selling that has capped every bounce attempt so far. A failed rebound near $543 earlier this cycle is the scar tissue.

Which brings us to the test.

The July test: Ironwood Zcash’s answer to the trust problem is an upgrade called Ironwood, targeted for late July. Its whole purpose is restoring confidence: formal verification and independent audits designed to prove the supply integrity that June’s scare called into question.

That makes the next few weeks unusually binary for ZEC. If Ironwood ships clean and the audits land well, the trust discount baked into the price has a real reason to close, and the technical setup gets its fundamental fuel. If it slips or disappoints, the rally loses its floor. Few coins have a single catalyst this clearly dated and this clearly decisive. Mark it.

The levels Up: $454 is the gate. Clear it and $520 is the target.

Down: $356 must hold. Below it, $300, then $251.

Bottom line Zcash at $422 is leading a genuine privacy-coin revival, reclaiming its 200-day average with a double-bottom setting up and momentum turning. The sector rotation is real, and ZEC is its flagship.

But this is a high-risk chart with a trust wound from June’s vulnerability scare and whales still selling bounces. Everything funnels into late July: the Ironwood upgrade either restores the confidence this rally needs, or it does not. Watch $454 above, $356 below, and that upgrade date above all. Privacy woke up. Whether it stays awake is a July question.

FAQ What is the Zcash price today?

Zcash is trading near $422 on July 2, 2026, up about 6% on the day, one of the strongest performers in the top 20 as privacy coins lead the market rebound.

Why is Zcash going up?

ZEC reclaimed its 200-day moving average as traders rotate into privacy coins, a sector out of favor for months. Monero and Bitcoin Cash are also green, making it a genuine sector move. A double-bottom pattern and improving momentum support the technical case.

What is the Ironwood upgrade?

Ironwood is Zcash’s late-July upgrade aimed at restoring trust after a June vulnerability disclosure, using formal verification and independent audits to prove supply integrity. It is the decisive catalyst for whether ZEC’s rally holds.

What happened to Zcash in June?

Developers disclosed and patched a four-year-old vulnerability in Zcash’s shielded pool. No exploitation was confirmed, but the disclosure damaged trust and contributed to a roughly 40% price crash that ZEC is still recovering from.

What are the key Zcash levels?

The gate above is $454, the 50-day average; clearing it targets $520. Support is $356, which guards the round $300 level, with $251 below that. Whale selling has capped previous bounce attempts.

This is not investment advice. Zcash is highly volatile and carries elevated risk after its June security scare. Always do your own research.

AUTHOR

Farhan Karim is a technology writer and content strategist with 15+ years of experience writing thousands of articles, blogs, whitepapers, and ebooks on Blockchain, Cryptocurrency, and other tech niches. His expertise in content strategy, SEO, and a keen eye on the ever-evolving tech space have led him to work with companies like Pepsi, Huawei, Arab News, and now Blockchain Reporter.

Key Takeaways ARM is expanding beyond chip licensing with the AGI CPU to target AI infrastructure workloads.Arm is seeing broader adoption across hyperscalers, with support from NVIDIA, Google, and other partners.ARM trades at 57.93X forward sales, reflecting high expectations despite strong AI growth prospects. Arm Holdings plc (ARM - Free Report) shares have surged 118% over the past year, outperforming the semiconductor industry's impressive 83% gain.

The stock has benefited from growing investor optimism surrounding artificial intelligence, cloud computing, and next-generation semiconductor infrastructure. While much of the AI rally has centered on GPU leaders, ARM is steadily strengthening its position as the foundational architecture powering a growing share of AI-enabled devices and data centers. Its expanding software ecosystem, deepening partnerships with hyperscalers and ambitious push into AI infrastructure continue to reinforce the company's long-term growth story.

                                                            Image Source: Zacks Investment Research

ARM's Expanding Ecosystem Creates a Powerful Competitive MoatARM has built one of the semiconductor industry's strongest competitive advantages through a deeply interconnected ecosystem linking software developers and hardware manufacturers. This two-sided network has evolved into a durable competitive moat that becomes stronger as adoption continues to expand.

The company's architecture has become the preferred standard for device manufacturers because of its broad compatibility with leading operating systems, including Android, iOS, Windows and Linux. This extensive software support gives hardware manufacturers confidence that Arm-based processors will seamlessly run widely used applications, developer tools, and enterprise software across multiple computing environments.

The benefits extend equally to software developers. As more hardware companies adopt Arm's architecture, developers gain immediate access to an enormous installed base of devices, creating greater incentives to optimize applications for Arm-powered systems. Every additional hardware partner strengthens the software ecosystem, while broader software compatibility attracts even more hardware manufacturers.

This self-reinforcing cycle has helped ARM establish an exceptionally strong competitive position. The company's intellectual property now powers nearly every smartphone globally, creating significant barriers for competitors seeking to challenge its dominance in mobile CPU architecture.

AI Infrastructure Opens a New Growth AvenueWhile Arm Holdings has traditionally been known for licensing its processor designs, the company is increasingly expanding its presence across AI infrastructure. Its newly introduced Arm AGI CPU has been specifically designed to address the emerging era of agentic artificial intelligence, where autonomous AI agents continuously process and execute increasingly complex workloads.

The Arm AGI CPU is positioned as a highly efficient alternative to conventional x86 processors. According to the company, the processor delivers superior rack-level performance while improving overall infrastructure efficiency. The architecture is also designed to reduce capital expenditures for customers while enabling more efficient scaling of AI workloads across cloud and enterprise environments.

This initiative represents a strategic evolution beyond ARM's traditional licensing model. Rather than serving solely as a processor architecture provider, the company is increasingly positioning itself as a core infrastructure platform supporting the next generation of AI-powered data centers.

Cloud Leaders Continue Expanding ARM AdoptionMomentum behind Arm Holdings' architecture continues to accelerate among leading hyperscale cloud providers and AI infrastructure companies. NVIDIA (NVDA - Free Report) has further expanded its collaboration with ARM by integrating Arm-based CPUs into next-generation AI systems while introducing its Vera CPU platform to improve utilization and performance across AI clusters. NVIDIA continues to demonstrate growing confidence in ARM's processor architecture as AI infrastructure becomes increasingly complex.

Meanwhile, Alphabet (GOOGL - Free Report) is significantly deepening its own Arm strategy. Through Google, Alphabet plans to integrate custom Axion CPUs into future Tensor Processing Unit systems, replacing legacy x86 host processors with Arm-based designs to improve efficiency and AI training economics. The continued commitment from Alphabet further validates Arm's expanding importance within hyperscale cloud infrastructure.

Beyond NVIDIA and Alphabet, major technology companies, including AWS, Microsoft, Oracle, Samsung, Micron and SK Hynix, continue broadening support for the wider Arm ecosystem, reinforcing its position as an industry standard.

Strong Customer Demand Supports Long-Term GrowthCustomer demand for the Arm AGI CPU has already exceeded the company's initial launch expectations. Interest has been particularly strong among cloud service providers, telecommunications companies, and enterprise AI customers seeking more efficient computing architectures for increasingly demanding workloads.

Arm Holdings also noted that Arm-based processors now account for approximately half of CPU deployments across major hyperscale cloud providers, highlighting the company's growing influence within modern cloud infrastructure. As enterprises continue accelerating investments in artificial intelligence, Arm appears well-positioned to capture a larger share of future infrastructure spending.

The company's expanding ecosystem, dominant mobile presence, and increasing adoption across AI infrastructure collectively strengthen its long-term outlook. Backed by growing commitments from industry leaders such as NVIDIA and Alphabet, Arm Holdings is steadily evolving from a mobile processor leader into one of the foundational technology providers powering the next generation of global AI computing infrastructure.

We are expecting 21% sales growth and 19% increase in EPS for ARM in the current fiscal year, suggesting a steadier growth trajectory as it continues to scale its licensing model and invest in AI-enabled chip innovation.

ARM’s Premium Valuation Could Limit Near-Term UpsideDespite the company’s impressive execution, valuation remains one of the biggest concerns surrounding the stock.

ARM currently trades at a forward price-to-sales ratio of 55.09X, far above the semiconductor industry average of approximately 9.51X. The stock also carries a Value Score of F, highlighting its premium valuation relative to peers.

                                                               Image Source: Zacks Investment Research

Such elevated pricing suggests investors are already anticipating substantial long-term growth fueled by artificial intelligence adoption, expanding royalty streams and broader deployment of ARM architecture in advanced computing systems.

However, the semiconductor industry remains highly cyclical. If smartphone demand rebounds more slowly than anticipated or hyperscaler spending begins to moderate, market sentiment could deteriorate quickly. In these situations, expensive semiconductor stocks often experience amplified downside volatility.

As a result, even continued operational strength may not fully protect ARM shares if broader macroeconomic or industry conditions weaken. The current valuation leaves limited room for execution missteps or slower-than-expected growth.

ARM Stock Appears Worth HoldingArm Holdings continues to strengthen its long-term investment case through its dominant processor ecosystem, expanding role in artificial intelligence infrastructure, and growing adoption among leading cloud providers. Its architecture remains deeply embedded across mobile computing while new AI initiatives create meaningful opportunities beyond its traditional licensing business. However, much of this optimism already appears reflected in the stock's premium valuation, leaving limited room for disappointment if industry demand softens or growth moderates. Given its outstanding fundamentals but elevated valuation, ARM appears best suited as a Hold, with investors waiting for a more attractive entry point before adding to positions.

ARM carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Decentralized finance (DeFi) platform Aave has deployed its V3 lending protocol on Monad, expanding the layer-1 blockchain’s lending ecosystem with support for 12 assets at launch. 

On Thursday, Aave announced that the initial market supports USDT0, USDC, Aave’s GHO stablecoin, USDe, mUSD, AUSD, WETH, cbBTC, wstETH, weETH, syrupUSDC and sUSDe. It is also Aave's first deployment with Chainlink Smart Value Recapture enabled from day one, allowing part of the value generated from liquidations to be redirected back to the protocol.

The deployment expands Aave’s multichain lending network while giving Monad users and developers access to an established borrowing market, Aave’s GHO stablecoin and liquidity incentives intended to support early adoption. 

Monad is compatible with Ethereum’s application environment, allowing existing Solidity contracts and Ethereum tooling to be used with minimal changes, according to Aave’s governance proposal.

Monad's total value locked as of Thursday. Source: DefiLlama

Aave deployment tests Monad’s liquidity ambitions Aave’s governance documents show that the Monad Foundation committed $15 million in incentives during the first 12 months after activation. The foundation also agreed to acquire and retain 10 million GHO for over six months, while Aave DAO committed another 500,000 GHO in incentives to support adoption on Monad.

These incentives could help establish initial liquidity. However, user activity will need to persist after incentives decline. According to a risk assessment by LlamaRisk, Monad’s mainnet launched on Nov. 24, 2025, and had about $359.5 million in total value locked as of June 8. It said early network usage had compressed after a strong start and that liquidity remained concentrated in established protocols.

LlamaRisk supported the deployment with conservative initial parameters, citing Monad’s short operating history.

The launch also comes as institutions increasingly explore bringing tokenized assets into DeFi lending markets. In June, Standard Chartered said that tokenized assets entering DeFi could drive deposits into Aave, whose deposit base reached about $75 billion at its October 2025 peak. 

In April, Centrifuge revealed plans to bring tokenized Treasurys, private credit and AAA-rated collateralized loan obligations to Monad for use in lending, collateral and secondary-market activity. 

Although Centrifuge has not announced that its assets will be integrated into Aave, the deployment gives Monad an established lending venue that could support tokenized assets as its ecosystem develops.

Magazine: China’s 107 Bitcoin memory thief, Bithumb CEO booked: Asia Express

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

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CoreWeave (NASDAQ:CRWV) is under real pressure. The stock fell almost 14% on Wednesday, market cap has slipped under $50 billion to $46.75 billion, and the balance sheet is finally getting the attention bulls spent a year asking you to ignore.

CoreWeave rents GPU compute to AI customers, with Meta and OpenAI anchoring a $99 billion contracted backlog. It got there by borrowing aggressively against future revenue and against the GPUs themselves. That worked when the story was pure growth. It works less well when interest expense starts eating the income statement.

How a $166 stock became an $85 stock Shares are down 31% the past month and off a 52-week high of $166.22. Today’s move traces to a securities lawsuit filed June 29 alleging the company overstated its ability to meet customer demand and understated its reliance on a single third-party data center supplier. CEO Michael Intrator sold 307,692 shares on June 23 for roughly $32.87 million under a 10b5-1 plan, one of several eight-figure insider sales in June.

However, revenue grew 111.6% year over year last quarter to $2.08 billion, beating consensus. The backlog compounds, NVIDIA took a $2 billion equity stake, and active power crossed 1 GW with an 8 GW target for 2030. Analysts carry an average price target of $143.41. If AI inference demand compounds at the pace bulls model, backlog conversion alone would justify a rerating.

The balance sheet is the story The total debt sits at $35.15 billion against $3.02 billion of cash. Capital lease obligations add another $10.29 billion. Interest expense doubled year over year to $536 million in a single quarter. Free cash flow ran negative $4.71 billion because capex hit $7.70 billion. Debt has climbed from roughly $2 billion at year-end 2023 to $35 billion today. That is the story now.

If you already own it, the case for patience is that operating cash flow was positive at $2.98 billion last quarter and the backlog is contracted. Composite sentiment sits at 57.37, neutral with medium confidence. Holding here underwrites a friendly refinancing environment, firm GPU pricing, and a lawsuit that stays contained. Three variables, all outside management’s control.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and CoreWeave, Inc. Class A Common Stock didn't make the cut. Grab the names FREE today.

CRWV currently trades just above $85. The consensus target of $143.41 implies roughly 63% upside, drawn from 3 Strong Buy, 19 Buy, 11 Hold, 1 Sell, and 1 Strong Sell ratings. Those targets were set before today’s drop and should be treated as one input among many. Year to date the stock is up 39%. Over the past year CRWV has lost 38.95% against a positive S&P.

Why the debt wins the argument At this price, the debt argument wins the day.

Interest expense is compounding faster than backlog converts to GAAP revenue, and each new data center draws more non-recourse debt against equipment that depreciates in three to five years. Current liabilities of $17.82 billion already exceed current assets by more than three times. If hyperscaler AI capex softens by even a quarter, there is no margin of safety.

The lawsuit matters mainly because discovery could surface uncomfortable detail about that single-supplier disclosure. Persistent insider selling, including from the CEO, tells you how the people closest to those disclosures are positioning.

What would invalidate the thesis is a clean quarter where free cash flow inflects and interest coverage stabilizes. Until that arrives, the risk-reward tilts against holders. A 63% analyst upside means little when the downside question is solvency.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and CoreWeave, Inc. Class A Common Stock didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Key Takeaways BigBear.ai added industrial AI contracts and expanded its digital twin and simulation platform.BBAI strengthened its AI portfolio through the Ask Sage and CargoSeer acquisitions.Growing backlog, higher margins and reaffirmed 2026 guidance reflect continued execution. BigBear.ai Holdings, Inc. (BBAI - Free Report) is steadily evolving from a pure-play AI software provider into a broader industrial technology company. While its core strength remains mission-ready artificial intelligence for defense and security, recent initiatives suggest the company is building a more diversified business by applying AI to manufacturing, logistics and critical infrastructure.

During the first quarter of 2026, BigBear.ai secured new contracts for its Shipyard AI platform with Canada's Chantier Davie and U.S.-based Bollinger Shipyards. The company also highlighted growing demand for its ProModel simulation platform, which enables digital twins for manufacturing, warehousing, healthcare and defense operations. These industrial applications move the company beyond traditional AI analytics into operational optimization, where customers use predictive modeling to improve productivity and resource planning.

The expansion is further supported by acquisitions. Ask Sage strengthens BigBear.ai's generative AI capabilities, while CargoSeer extends its reach into cargo inspection and supply-chain intelligence. CargoSeer recently introduced AI tools to detect invoice fraud and match shipping documents with cargo contents, broadening the company's addressable market beyond government agencies. Ask Sage has also launched a commercial version, opening its secure AI platform to enterprises in defense, security and critical infrastructure.

Financially, the strategy is beginning to gain traction. First-quarter backlog climbed 14% to $281.9 million, supported by more than $60 million of national security awards, while gross margin expanded to 34% as higher-margin AI platforms contributed a larger share of revenues. Management also reaffirmed its 2026 revenue guidance of $135-$165 million, indicating confidence in continued execution.

Although BigBear.ai still relies heavily on government spending, the growing portfolio of industrial AI, digital twins and supply-chain solutions positions it to diversify revenue sources and expand well beyond traditional AI software over the long term.

Industrial AI Rivals to Watch: Palantir and C3.aiBigBear.ai's push into industrial AI and mission-critical solutions places it in competition with Palantir Technologies (PLTR - Free Report) and C3.ai (AI - Free Report) , both of which are expanding AI adoption across government and commercial markets. Palantir has built a strong presence in defense, manufacturing and supply-chain optimization through its AI Platform, enabling customers to deploy AI-driven decision-making across complex operations. Its deep relationships with government agencies and growing commercial customer base make Palantir a formidable rival in industrial and national security applications.

C3.ai is another key competitor, offering enterprise AI applications for manufacturing, energy, defense and logistics. Its predictive maintenance, supply-chain optimization and digital transformation solutions help industrial customers improve operational efficiency and reduce costs. While BigBear.ai differentiates itself with mission-focused AI, secure generative AI platforms and digital twin capabilities, Palantir's scale and C3.ai's broad enterprise reach underscore the competitive landscape as demand for industrial AI solutions continues to expand.

BBAI’s Price Performance, Valuation & EPS Estimate TrendShares of BBAI have dropped 38.1% over the past six months, underperforming the Zacks Computers - IT Services industry, as shown below.

BBAI’s 6-Month Price Performance
Image Source: Zacks Investment Research

BBAI stock is currently trading at a discount compared with the industry peers, with a forward 12-month price-to-sales (P/S) ratio of 11.31, as evidenced by the chart below.

BBAI’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for BBAI’s 2026 loss per share has narrowed in the past 60 days, as shown below. The estimated figure indicates a narrower loss from the year-ago level of 82 cents per share.

EPS Trend of BBAI
Image Source: Zacks Investment Research

BBAI’s Zacks RankBigBear.ai currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

While price action has long dominated the cryptocurrency market, attention in 2026 is steadily shifting toward the technical foundations of blockchain networks. With Ethereum, Solana and Avalanche preparing for some of their most ambitious protocol upgrades to date, Coinbase’s layer-2 network Base activated its Beryl hard fork just last Friday. In contrast, Bitcoin developers remain deadlocked over several contentious proposals and have yet to reach consensus.

Focus shifts from speed to resilienceTim Sun, a senior researcher at Hong Kong-based asset manager HashKey Group, explained that previous protocol upgrades have typically prioritized adding new features, speeding up transactions and boosting capacity. However, Sun observed that by 2026, the industry’s priorities are tilting towards more predictable governance, greater reliability and the development of robust, enterprise-scale infrastructure to support widespread financial use cases.

Tim Sun stresses that, looking ahead to 2026, simply adding more features is no longer the main concern; instead, reliability and institution-grade infrastructure are taking center stage.

Spotlight on Ethereum’s Glamsterdam upgradeAmong Ethereum’s key roadmap milestones, the Glamsterdam upgrade stands out as one of this year’s most pivotal steps. Currently being tested on developer networks, it is expected to roll out to the mainnet in the second half of 2026. Planned changes include improved scalability, reinforcement of the layer-1 base, and a streamlined user experience aimed at simplifying network usage.

Sun noted that the upgrade could enable higher transaction throughput, expand data capacity, and reduce database bloat. The overarching goal is to make Ethereum a more favorable environment for stablecoin settlements and on-chain use of real-world assets.

Holly Atkinson, chief product and technology officer at 1inch, described Glamsterdam as Ethereum’s most significant upgrade since The Merge in September 2022. One highlight is ePBS—short for enshrined proposer builder separation—a structure aimed at making block creation and proposal processes more transparent. However, RuleSpark founder Pavan Kaur cautioned that while this step might help, it will not eradicate maximal extractable value (MEV) issues altogether, as some harmful practices may simply adapt and persist in new forms.

Mini glossary: ePBS stands for enshrined proposer builder separation. It aims to clarify the distinction within the protocol between validators who propose blocks and entities that build their content, with the objective of minimizing concentration in transaction sequencing.

Solana and Base aim for lightning-fast confirmationsOn the Solana front, the Alpenglow upgrade is the year’s most significant development. After receiving strong backing in governance votes in September 2025, Alpenglow is still under development and slated for release in the latter half of 2026 alongside the Agave 4.1 validator client. This system will replace the current TowerBFT mechanism with an innovative voting component named Votor.

One of the most concrete impacts is a dramatic reduction in transaction finality time. The goal is to bring finality down to between 100 and 150 milliseconds under optimal network conditions, compared to the present average of approximately 12.8 seconds. The upgrade also targets reducing network load by removing on-chain voting operations, ultimately improving validator communication efficiency.

NetworkUpgradeKey objectiveEthereumGlamsterdamScalability and stronger layer 1SolanaAlpenglowCut finality time to 100–150 msBaseBerylReduce withdrawal time from 7 to 5 daysAvalanchePost-Etna L1 modelLower custom chain setup cost by over 99%Elsewhere, Base deployed its Beryl hard fork following a brief sequencer outage that paused block production for about two hours due to an invalid block. Jesse Pollak, one of Base’s co-founders, emphasized that users’ assets remained unaffected by the disruption, but acknowledged the downtime was unacceptable and added that lessons learned will help reinforce Base as a round-the-clock global financial platform.

Jesse Pollak underscores that user funds were secure during the incident, but says Base recognizes the network pause was not acceptable and is using this experience to guide technical improvements.

According to Base documentation, the Beryl hard fork introduces the B20 native token standard, shortens withdrawal finality from seven days to five, and implements the Reth V2 integration. These updates are expected to decrease node storage requirements and enhance execution efficiency.

Avalanche goes institutional, Bitcoin debates persistOn Avalanche, there is less focus on a single named hard fork and more on sweeping changes to attract enterprise users and boost performance. According to Sun, the Etna hard fork replaced the legacy subnet model with a system of sovereign Avalanche L1 chains, slashing the startup cost for launching a private blockchain by over 99%. He also highlighted that Progmat, which he says represents about 63% of Japan’s security token market, recently moved more than $2 billion in tokenized assets to a dedicated Avalanche L1 chain.

Bitcoin, meanwhile, stands apart from rival networks. Its main challenges in 2026 are not scheduled upgrades but debates over whether to make the protocol more programmable or to strengthen it against quantum computing threats. Proposals like OP_CAT, CTV and Lightning-focused LNHANCE—each associated with covenants and programmability—remain under discussion but lack an agreed activation path. Proposals such as BIP 360 and similar efforts to ease the shift to quantum-resistant spending methods are also still on the table without a clear consensus.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

Key Takeaways Netskope raised fiscal 2027 revenue guidance to $879-$883 million, implying 24-25% year-over-year growth.NTSK improved gross margin to 77%, but operating and free cash flow remained negative in the first quarter.NTSK faces execution risks as fiscal 2027 growth depends on stronger second-half bookings and cash flow. Netskope (NTSK - Free Report) offers a mixed investment setup. The cybersecurity company has growth tied to cloud security, secure access service edge and AI-driven enterprise protection.

The question is whether that promise is enough right now. Improving margins and raised guidance help the bull case, but cash flow pressure, softer expansion metrics and heavy second-half dependence keep the risk profile elevated.

NTSK Revenue Targets Support the Bull CaseManagement raised fiscal 2027 revenue guidance to $879-$883 million, implying 24-25% year-over-year growth. It also expects annual recurring revenue growth to finish within about one point of revenue growth.

The second half matters. Management expects a larger share of net new annual recurring revenue later in fiscal 2027 as newer sales representatives ramp and AI Security adoption broadens.

Netskope Margins Are Moving in the Right DirectionNetskope’s unit economics are improving. Non-GAAP gross margin reached 77% in the fiscal first quarter, up three percentage points year over year.

Operating leverage also moved in the right direction, with non-GAAP operating margin improving four points year over year to negative 14%. For fiscal 2027, management expects non-GAAP operating margin of negative 9.5% to negative 10% and positive quarterly free cash flow in the second half.

NTSK Still Has Near-Term Financial FrictionThe near-term cash profile is less clean. Operating cash flow was negative $53.9 million in the fiscal first quarter, while free cash flow was negative $57.2 million.

The shift to annual billings is weighing on collections, and second-quarter non-GAAP operating margin guidance remains negative 14% to negative 15%. Netskope still needs stronger bookings conversion to support the raised outlook.

Netskope Valuation Needs Better ExecutionThe valuation leaves some upside, but not a wide margin for error. NTSK’s price target is $13, compared with a stock price of $11.66 as of July 1, 2026.

That target is based on 2.72 times forward 12-month sales. Execution risks tied to pricing pressure, partner concentration and slower expansion make that upside less straightforward.

NTSK Looks Like a Watchlist Name for NowNetskope is investable for investors who believe AI security demand and second-half execution will come through. Its platform breadth and enterprise relevance remain important positives.

Still, Palo Alto Networks (PANW - Free Report) and Zscaler (ZS - Free Report) frame the competitive challenge. Both are major security vendors in areas that overlap with Netskope’s cloud-delivered security and secure access markets, keeping pricing and deal timing risks in focus.

Netskope Ratings Reinforce a Cautious ViewThe bottom line is that NTSK looks more like a watchlist name than a clear buy. The company has improving fundamentals, but fiscal 2027 depends heavily on later-quarter conversion and better cash flow.

NTSK currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It also has a Value Score of F, Growth Score of F, Momentum Score of F and VGM Score of F. Since the Zacks Rank is designed around near-term earnings estimate trends and Zacks Style Scores help evaluate value, growth and momentum characteristics, the current combination points to limited quantitative support for the stock’s near-term setup.

Key Takeaways Netskope is expanding AI governance, secure access and data protection on one platform.NTSK grew Q1 fiscal 2027 revenue 28% to $201.6M, with ARR up 29% to $845M.Netskope says AI security adoption is early as evaluations and competition affect conversions. Netskope (NTSK - Free Report) offers a focused view of how cybersecurity demand is changing as enterprises adopt generative artificial intelligence, autonomous agents and cloud-delivered applications.

The company is tying AI governance, secure access service edge and data protection into one platform. That combination makes Netskope useful for understanding both the promise and limits of this emerging security cycle.

Netskope Sits at the Center of AI SecurityNetskope’s newer AI offerings target a basic enterprise problem: companies need to see where artificial intelligence is being used, assess the risk and enforce policy in real time.

AI Command Center is designed to centralize discovery, risk understanding and remediation across AI assets. AI Guardrails, AI Gateway, Agentic Broker and AI Red Teaming extend that approach into private AI traffic, agentic communications and AI-specific data and threat risks.

NTSK Benefits From SASE and SSE AdoptionNetskope also fits the longer-running shift toward secure access service edge (SASE) and security service edge (SSE). Its Netskope One platform combines security, networking, analytics and AI security across a broad product set.

The NewEdge private cloud remains central to that pitch. Management emphasizes performance, resilience and data sovereignty, which matter as enterprises replace appliance-based network security with cloud-delivered controls.

Netskope Partnerships Extend the Trend ThesisPartnerships show that AI security is moving deeper into the enterprise stack. Deloitte is using Netskope technology to deliver managed secure access service edge services for companies modernizing infrastructure and security.

Netskope has also expanded AI-security collaborations with Anthropic, OpenAI, Google Cloud and Amazon Bedrock AgentCore. These moves support the view that AI security will be embedded into workflows, cloud platforms and managed services rather than treated as a stand-alone feature.

NTSK Also Shows the Limits of Early AdoptionThe trend is still early. Some customers remain in evaluation mode, and AI security demand can lengthen conversion cycles before it becomes recurring revenue.

Competition adds pressure. Palo Alto Networks (PANW - Free Report) and Zscaler (ZS - Free Report) are relevant peers because both compete in cloud security, zero trust and platform consolidation. Their presence keeps pricing, performance and product breadth central to late-stage enterprise decisions.

Netskope Margins Suggest Scale Can Follow DemandNetskope’s first-quarter fiscal 2027 revenue rose 28% year over year to $201.6 million, while annual recurring revenue increased 29% to $845 million. Non-GAAP gross margin reached 77%, up three points from the prior-year period.

Visibility also improved. Remaining performance obligations increased 33% to more than $1.2 billion, and contracted future billings grew 71%. If demand converts into broader platform adoption, those metrics suggest scale can support better economics over time.

NTSK Ratings Show Trend Exposure Is Not EnoughThe bottom line is that Netskope has meaningful exposure to AI security, secure access service edge and cloud-delivered network protection. The industry narrative is attractive, but the stock setup remains less favorable.

NTSK currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

It also has a Value Score of F, Growth Score of F, Momentum Score of F and VGM Score of F.

Those scores suggest weaker characteristics across valuation, growth and price momentum under the Zacks Style Scores framework. For investors, that means the AI security story should be weighed against near-term execution risk and the stock’s current quantitative profile.

Shares of Space Exploration Technologies (SPCX +0.13%), known as SpaceX, trade at a steep premium, and that valuation is built on more than the company launching rockets. A big part of the bull case is Starlink, SpaceX's satellite internet business, which reached 10.3 million subscribers in the first quarter.

Starlink's subscriber base has doubled over the past year. That growth matters because Starlink is the company's most profitable business right now. Those profits can help fund SpaceX's broader ambitions in space and artificial intelligence (AI), which together represent enormous growth potential for the company.

Image source: Getty Images.

SpaceX is starving for capital SpaceX may be best known as Elon Musk's rocket company, but the financial picture looks more like a vertically integrated technology infrastructure business with three operating segments: Connectivity (Starlink), Space, and AI.

In 2025, the company generated $18.6 billion in total revenue and incurred a net loss of $4.9 billion across all segments. Starlink was the only profitable business. The Connectivity segment delivered more than $11 billion in revenue and $4.4 billion in operating profit, providing SpaceX with a meaningful pool of internally generated capital.

SpaceX is directing most of its capital spending toward the AI segment, which may signal where management sees the greatest upside over the next few years. Of the $20.7 billion in capital expenditures last year, $12.7 billion went to the AI segment, which includes xAI (Grok).

The IPO raised $86 billion in new capital, boosting its cash and equivalents to $100 billion as of June 19. It didn't waste time in deploying this fresh capital, recently acquiring Anysphere and its leading enterprise AI coding platform, Cursor. The company is trying to accelerate AI capabilities, even if that means aggressive capital deployment.

That's why Starlink's profitability is strategically valuable, and it's expected to grow quite quickly over the next few years. Goldman Sachs estimates Starlink revenue could reach $144 billion by 2030. If segment margins hold, that would put the connectivity segment's operating profit at over $50 billion -- cash that could materially support SpaceX's plans in space and AI.

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Starlink is one piece of a bigger empire The long-term value of owning AI models, data centers, communication satellites, and reusable rocket technology under one roof is hard to quantify, since space remains a largely unexplored frontier.

However, SpaceX pegs the combined addressable market across space, connectivity, and AI infrastructure at $28.5 trillion. That helps put the stock's $2 trillion market cap in perspective, but it's still very expensive, trading at roughly 100 times 2025 revenue. To justify that valuation, revenue needs to grow rapidly.

Starlink subscriber growth will be crucial, but investors should watch the AI segment, since that's where the company is investing the most capital. SpaceX recently struck a cloud services deal to lease xAI's data center capacity to Anthropic, in which it will pay SpaceX $1.25 billion per month through May 2029. More deals like this could open another large and growing revenue stream and potentially justify the stock's valuation.

Key Takeaways Tesla reported substantially more second-quarter deliveries than Wall Street expected, likely a partial reflection of EV demand pushed higher by high U.S. gas prices amid the U.S.-Iran conflict.Rivian also topped its own second-quarter projections, and lifted its full-year guidance.Shares of Tesla tumbled Thursday morning, while Rivian stock jumped more than 10%. Tesla's deliveries delivered today.

Elon Musk's EV company on Thursday morning said second-quarter deliveries came in above 480,000, substantially topping both Visible Alpha's average of Wall Street analysts' expectations and an average compiled by the company.1

That data—along with news that Rivian (RIVN) said its own Q2 deliveries came in higher than it expected, leading it to lift its full-year guidance—may in part reflect an uptick in EV demand driven by gas prices that were pushed higher by the U.S.-Iran conflict.2 Shares of Rivian were recently up 11%, while Tesla (TSLA) was off more than 6% in early Thursday trading.

Why This Matters to Your Money High gas prices can affect consumer behavior in a number of ways, including restraining other types of spending and sending drivers to the fuel pump more frequently for less gas. Data from the second quarter indicated that they may also have driven car buyers to EVs as they sought relief.

The average price of a gallon of regular unleaded, recently a bit above $3.80 according to AAA data, is down from a month ago but well above year-earlier levels.3 (Here's Investopedia's take on what to expect from gas prices over the balance of 2026.)

Some market experts think gas prices might have had little effect on second-quarter buying habits. "Although there is a tremendous amount of economic and policy uncertainty these days, the new-vehicle market seems to be relatively unfazed," Cox Automotive said last month. 4

Tesla shares had an interesting first half to 2026. They rose about 13% in the second quarter, slightly underperforming the S&P 500, but they were down for the year while the benchmark index rose nearly 10%. More broadly, the Magnificent 7 group of stocks, of which Tesla is a member, retreated over the first six months of the year, reflecting some unease about the health of the Big Tech rally.

CEO Elon Musk has sought to retrain investors from thinking of Tesla as an EV company, encouraging focus on emerging lines of business such as autonomous vehicles, artificial intelligence and robots. Some market watchers, meanwhile, believe the company's long-term future is as a division of SpaceX (SPCX), which Musk brought to public markets last month. Both companies are among the world's most valuable.

Shares of SpaceX, meanwhile, were up about 1% Thursday morning at $159. They're holding above the $150 price at which they started trading on IPO day three weeks ago; earlier this week, the company picked up fresh Wall Street analyst coverage, with Wedbush setting a $190 price target on the shares. That's well above recent levels, but below the stock's post-IPO highs.

© Mariakray / iStock Editorial via Getty Images

I keep hitting the buy button on Microsoft (NASDAQ:MSFT | MSFT Price Prediction), and the June selloff only made me press it harder. When the tape dragged this stock down to $373 in June while the underlying business printed 18.3% revenue growth, my thesis stopped being a thesis and started feeling like a gift. I own this for the next twenty years of retirement income, through many cycles of noisy headlines.

What pulls me back is boring in the best way. Microsoft sells the plumbing every enterprise on earth now depends on: Windows, Office 365, Azure, GitHub, Dynamics, LinkedIn. Companies do not rip that stack out during a recession. They renew it, expand it, and pay more for it every cycle. That is the cash-flow utility I want anchoring my portfolio.

Three Reasons I Keep Adding First, the operational reality is running in the opposite direction of the stock chart. Q3 FY26 delivered EPS of $4.27 against a $4.07 estimate, the fourth consecutive beat, on $82.89 billion in revenue. Intelligent Cloud grew 30%, Azure grew 40%, and the AI business now runs at a $37 billion annualized rate, up 123% year over year. Alpha Vantage shows 12 consecutive quarterly beats and an 83.8% beat rate across 130 quarters. That is a compounding machine.

Second, the forward book is enormous. Commercial remaining performance obligations reached $627 billion, up 99%. Contracted revenue at that scale is a multi-year visibility signal I do not get from most large caps. Layer on the restructured OpenAI deal, where Microsoft holds a ~27% stake valued around $135 billion and secured IP rights through 2032 plus an incremental $250 billion Azure commitment, and I own a piece of the frontier without owning the burn.

Third, the balance sheet and returns profile do the heavy lifting. ROE of 33.28%, operating margin of 45.62%, interest coverage of 53.89x, and debt-to-equity of 0.176. Trailing P/E of 22 and forward P/E of 19 on a business compounding EPS at this pace is the kind of setup I rarely get outside of a market panic. The dividend yields only 1.01%, but Microsoft returned $12.7 billion to shareholders last quarter through dividends and buybacks, up 32%.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.

The Risk I Will Not Wave Away Capex is the real concern. Q3 capital expenditures hit $30.88 billion, up 84.39%, and Microsoft’s share of OpenAI losses ran $3.1 billion in Q1 FY26 against $523 million a year earlier. If AI monetization stalls, that spend gets ugly. What keeps me buying is the response function on the other side of the ledger: operating income grew 19.99% and operating cash flow grew 26.01% in the same quarter the capex nearly doubled. The customers are paying for the buildout in real time.

I also noticed 13 board members quietly accumulated shares on June 5 during the drawdown, and the Chief Accounting Officer picked up 5,004 shares on June 15. That is a group leaning into its future.

Why the Buy Button Stays Live Ten-year total return on this stock sits at 724.68%, and the fundamentals underneath it look stronger today than they did at the beginning of that run. When the market hands me a global cash-flow utility at 19 times forward earnings with a $627 billion backlog, I do not overthink it. I buy the plumbing, collect the compounding, and let time do the rest.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Key Takeaways T is expanding Build-A-Plan to offer more flexibility across wireless and home Internet services.AT&T customers can customize wireless and add Fiber or Internet Air in the same purchase process.AT&T's bundled packages start at $70 per month, helping customers manage costs and service choices. AT&T Inc. (T - Free Report) is aiming to extend its Build-A-Plan offering to give customers greater flexibility, personalization and value across wireless and home Internet services. The updated offering intends to deliver a more seamless and convenient experience for customers both at home and outside.

The enhanced Build-A-Plan allows customers to customize their wireless services to their needs and easily add home Internet options such as AT&T Fiber or AT&T Internet Air during the same purchase process. The plan offers greater control over service choices while helping customers manage costs, with bundled packages starting at $70 per month.

AT&T Fiber remains a key part of the initiative, offering high-speed Internet for households with growing connectivity needs. In areas where fiber is unavailable, AT&T Internet Air offers a dependable alternative through its wireless network, further strengthening the company’s customer-focused strategy.

How Are Competitors Performing?AT&T faces stiff competition from Verizon Communications, Inc. (VZ - Free Report) and T-Mobile, US, Inc. (TMUS - Free Report) . Verizon has strengthened its connectivity services by expanding its 5G network nationwide. The company continues to invest in infrastructure upgrades to deliver broader coverage and more stable network performance. This ongoing expansion positions Verizon to better support future technological advancements and digital innovation.

T-Mobile is improving connectivity by expanding its fixed wireless Internet services to reach more households. The company is focusing on enhancing network capacity to manage increasing data traffic. T-Mobile leverages its spectrum assets to improve network efficiency and strengthen overall service quality.

T’s Price Performance, Valuation & EstimatesAT&T shares have lost 27.8% over the past year compared with the industry’s decline of 23.5%.

Image Source: Zacks Investment Research

From a valuation standpoint, AT&T trades at a forward price-to-sales ratio of 1.08, below the industry tally of 1.5.

Image Source: Zacks Investment Research

Earnings estimates for both 2026 and 2027 remained static at $2.30 and $2.52, respectively.

Image Source: Zacks Investment Research

AT&T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Intel is expanding AI PCs and networking offerings with new Core Ultra, Arc G-Series and Ethernet products.Intel is expanding AI deployments through collaborations with companies including Google, Dell and Cisco.Intel is advancing its foundry roadmap while higher earnings estimates reflect improving business momentum. Intel Corporation (INTC - Free Report) has gained 480.5% in a year compared with the industry’s growth 39.4%. It has outperformed compared to the Zacks Computer & Technology sector and the S&P 500.

Image Source: Zacks Investment Research

The company has outperformed its peers, Qualcomm Incorporated (QCOM - Free Report) and Advanced Micro Devices (AMD - Free Report) . AMD has gained 290.4%, while Qualcomm has increased 11.8% during this period.

Solid Traction in Expanding AI Ecosystem is Driving GrowthIntel continues to strengthen its position in the emerging AI PC market. It is steadily expanding its portfolio of Core Ultra Series processors, Arc G-Series products and hybrid AI solutions. The company launched the Arc G-Series processors. The leading-edge processors built on Intel Core Ultra Series 3 architecture are designed to deliver higher gaming performance, improved power efficiency and longer battery life. Such innovative launches will likely boost prospects in the growing AI gaming PC market.

The company also introduced Ethernet E835 Controllers and Network Adapters for cloud, enterprise, AI and telecom infrastructure. As enterprises aim to boost network infrastructure to match high bandwidth requirements, Intel is broadening its portfolio offerings to capitalize on the emerging trend. Its strong focus on innovation boosts its competitive edge against other industry leaders such as AMD and Qualcomm.

Intel continues to deepen relationships with leading technology companies across multiple domains such as cloud computing, enterprise infrastructure, telecommunications and consumer electronics manufacturers. Collaborations with partners including Google, Dell Technologies, Nokia, Cisco, Lenovo, Supermicro and MSI are driving adoption of Intel processors.

Recently, TPIsoftware has adopted Intel Xeon 6 processors with Performance Cores and Intel Arc Pro B60 GPUs as the computing foundation for its enterprise-grade sovereign AI solutions. This underscores Intel’s expanding role in secure on-premises generative AI deployments. Intel has also revealed that several industry leaders across industries, including AT&T, Verizon, Samsung and Ericsson, are leveraging Xeon 6 for network transformation and AI acceleration. Growing collaboration with industry leaders and a broadening customer base bode well for sustainable growth.

Steady Foundry Roadmap Execution is a PositiveIntel continues to make steady progress on its IDM (Integrated Device Manufacturing) 2.0 strategy and advanced manufacturing roadmap. Intel 18A entered production phase last year. The latest Intel Foundry update indicates Intel 18A-P entering risk production while maintaining compatibility with Intel 18A. The 18A-P is designed to deliver higher performance, lower power consumption and improved thermal characteristics.

Estimate Revision Trend of INTCEarnings estimates for Intel for 2026 and 2027 have increased over the past 60 days.

Image Source: Zacks Investment Research

Key Valuation Metric for IntelFrom a valuation standpoint, Intel appears to be relatively cheaper than the industry and below its mean. Going by the price/book ratio, the company's shares currently trade at 5.11 book value, lower than 25.71 of the industry average.

Image Source: Zacks Investment Research

End NoteIntel's innovative AI solutions are set to benefit the broader semiconductor ecosystem by driving down costs, improving performance and fostering an open, scalable AI environment. Innovative product launches cater to growing AI networking spaces, bodes well for sustainable growth. Demand for XEON 6 processors remains strong. Collaboration with major industry leaders is driving innovation. It is strategically investing to expand its manufacturing capacity to accelerate its IDM 2.0 strategy. This will likely bring long-term benefits. Upward estimate revision shows investors’ growing confidence in the stock’s growth potential. Hence, with a Zacks rank #1 (Strong Buy), Intel appears to be a good investment option at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

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Cisco Systems (NASDAQ:CSCO | CSCO Price Prediction) has quietly become one of the most compelling AI infrastructure plays in the market, even as retail chatter has turned sour.

The company just posted record quarterly revenue of $15.8 billion, raised full-year guidance, and told investors it now expects to book $9 billion in AI infrastructure orders from hyperscalers in FY26. Yet Reddit sentiment sits firmly bearish. Our proprietary model sides with management.

The 24/7 Wall St. price target for Cisco is $133.66, implying 13.79% upside from the current $117.46. Our recommendation is buy, with confidence at 90%.

24/7 Wall St. Price Target Summary Metric Value Current Price $117.46 24/7 Wall St. Price Target $133.66 Upside 13.79% Recommendation BUY Confidence Level 90% The Stock Has Nearly Doubled Since April Cisco is up 54.12% year to date and 73.17% over the past year, though shares have cooled 3.05% over the last week and trade about 10% off the 52-week high of $130.37.

The catalyst was the May 13 earnings release, where CSCO delivered its fourth consecutive EPS beat at $1.06 and revenue growth of 11.96% year over year. The stock jumped 13.41% on earnings day. Networking revenue surged 25%, and total product orders climbed 35%. Management raised FY26 revenue guidance to $62.8 billion to $63 billion and EPS to $4.27 to $4.29.

The Case for $140+ The bull case rests on AI infrastructure durability. CFO Mark Patterson told analysts “it’s reasonable to expect we will recognize at least $6 billion of revenue in FY ’27” from hyperscale AI alone. Acacia optics orders topped $1 billion in Q3, and Cisco booked five new Silicon One design wins with hyperscalers.

CEO Chuck Robbins said “Cisco is well-positioned as the critical infrastructure for the AI era.” Enterprise data center switching orders jumped over 40%, and public sector orders rose 27%. Our bull scenario points to $140.03, a 19.22% return.

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The Risks Worth Watching The trailing P/E of 38 is rich for a company whose long-term model is 4% to 6% growth in totality. Non-GAAP gross margins compressed 260 basis points on AI hardware mix, and Cisco is absorbing up to $1 billion in restructuring charges. Hyperscaler concentration is real: strip out webscale and order growth was 19%, of which 4 to 5 percentage points came from price increases rather than unit growth.

Insider activity has skewed net selling across 44 recent transactions. That said, bulls would note Patterson said “gross margins have stabilized” and the restructuring reinvests into silicon and optics, where Cisco is winning. Our bear case lands at $111.02.

Cisco Price Prediction 2026-2030 The 24/7 Wall St. price target of $133.66 reflects a buy with 90% confidence. The scale tips on AI order momentum: a jump to $9 billion of hyperscaler orders from an initial $5 billion plan represents a real backlog with a $6 billion FY27 revenue floor.

The bullish thesis holds if hyperscaler capex sustains through 2027 and Silicon One keeps taking share. The bearish scenario plays out if enterprise pull-forward reverses in FY27 or memory costs re-inflate.

Year 24/7 Wall St. Price Target 2026 $133.66 2027 $145.00 2028 $158.00 2029 $170.00 2030 $180.89 These projections assume Cisco continues executing on its AI infrastructure roadmap and campus refresh cycle. Significant upside or downside could result from hyperscaler capex trends and Silicon One share gains.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Cisco Systems didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Key Takeaways Data 360 is becoming a key growth driver for Salesforce as enterprises invest more in AI and connected data.CRM's combined AI and data ARR surged 200% YoY to $3.4 billion in the first quarter of fiscal 2027.Informatica fortifies Salesforce's Data 360 with better integration, governance and management capabilities. Salesforce, Inc. (CRM - Free Report) is strengthening its artificial intelligence (AI) strategy by expanding Data 360, its unified data platform that helps businesses connect customer information across applications. As enterprises invest more in AI, high-quality and connected data has become essential, making Data 360 an increasingly important growth driver for Salesforce in fiscal 2027.

The platform is benefiting from the company’s broader AI initiatives, especially Agentforce. During the first quarter of fiscal 2027, Salesforce reported that combined AI and data annual recurring revenues (ARR), including Agentforce, Data 360 and Informatica Cloud, reached $3.4 billion. This reflects a whopping 200% year-over-year surge. The company also noted that 50% of Agentforce and Data 360 bookings came from existing customers expanding their spending, highlighting strong cross-selling opportunities within its installed customer base.

The recently completed Informatica acquisition further strengthens Salesforce’s Data 360 by improving data integration, governance and management capabilities. Management expects the combination to help customers move AI projects from pilot stages to enterprise-wide deployment, creating additional revenue opportunities. The company also stated that Informatica contributed to first-quarter revenue outperformance and that integration synergies are already emerging.

Salesforce’s financial performance reflects this momentum. First-quarter fiscal 2027 revenues increased 13% year over year to $11.13 billion, while current remaining performance obligations (cRPO) climbed about 14% to $33.6 billion. Management also raised the lower end of its fiscal 2027 revenue guidance to $45.9-$46.2 billion from $45.8-$46.2 billion projected earlier.

With enterprises increasingly linking AI success to trusted data, Data 360 is becoming a key differentiator for Salesforce. Continued adoption, combined with deeper customer expansion and AI demand, could support stronger revenue growth throughout fiscal 2027 and beyond. The Zacks Consensus Estimate for fiscal 2027 revenues is currently pegged at $46.09 billion, indicating a year-over-year increase of approximately 11%.

How Do Rivals Fare Against CRM in AI Enterprise Space?Two major competitors of Salesforce in the AI-powered enterprise software market are Microsoft Corporation (MSFT - Free Report) and Oracle Corporation (ORCL - Free Report) . Both are aggressively investing in AI to capture enterprise spending.

Microsoft is leveraging its strong position in cloud computing and business software through Dynamics 365 and its partnership with OpenAI. In the third quarter of fiscal 2026, Microsoft’s Azure and other cloud services revenues grew 40% year over year, while its AI business surpassed an annual revenue run rate of $37 billion, surging 123% year over year.

The company continues to embed AI copilots across its software portfolio, helping customers automate sales, service and workflow processes. Microsoft’s massive installed base of Office and Azure customers provides a strong channel for AI adoption, making it a formidable competitor to Salesforce’s Agentforce platform.

Oracle is also strengthening its AI capabilities through Oracle Cloud Infrastructure (OCI) and Fusion applications. In the fourth quarter of fiscal 2026, Oracle’s total cloud revenues increased 47% year over year to $9.9 billion. OCI revenues surged 93% to $5.8 billion, reflecting strong demand for AI workloads and enterprise applications.

Oracle is integrating AI agents across its ERP (Enterprise Resource Planning), customer experience and database products, allowing customers to automate business functions. Its growing cloud business and deep enterprise relationships position Oracle as a key challenger as companies increase spending on AI-driven software solutions.

Salesforce’s Price Performance, Valuation and EstimatesShares of Salesforce have plunged 38.4% year to date, while the Zacks Internet – Software industry has fallen 12.8%.

Salesforce YTD Price Return Performance
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From a valuation standpoint, CRM trades at a forward price-to-earnings ratio of 11.11, significantly below the industry’s average of 25.65.

Salesforce Forward 12-Month P/E Ratio
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The Zacks Consensus Estimate for Salesforce’s fiscal 2027 and 2028 earnings implies a year-over-year increase of approximately 12.8% and 9.7%, respectively. Estimates for fiscal 2027 and 2028 have remained unchanged over the past 30 days.

Image Source: Zacks Investment Research

Salesforce currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways NextEra's PPAs add contracted revenues and support renewable growth as clean power demand rises.PPAs with Google Cloud and Meta expand demand for wind, solar and battery storage projects.A 33-GW signed project backlog gives NextEra strong earnings visibility and supports new development. NextEra Energy (NEE - Free Report) offers an attractive long-term investment opportunity, driven by its leadership in renewable energy and an expanding portfolio of long-term power purchase agreements (PPAs). Rising demand for reliable, carbon-free electricity from data centers, technology companies and industrial customers supports continued growth, while its regulated utility business provides stable cash flows and a resilient earnings base.

Strategic partnerships are strengthening NextEra's growth outlook. Agreements with Google Cloud and Meta are expanding demand for the company's wind, solar and battery storage projects while adding long-duration contracted revenues. These PPAs enhance earnings visibility, reduce exposure to power price volatility and diversify the customer base through high-quality counterparties.

NextEra’s subsidiary has entered into an MOU with Xcel Energy to accelerate the development of new power generation for large electricity consumers, including data centers. The agreement strengthens their long-standing partnership and supports faster capacity expansion to meet rising power demand.

With disciplined capital investment, a robust renewable development pipeline and a growing backlog of contracted assets, NextEra is well positioned to deliver sustainable earnings growth.

 NextEra's expanding portfolio of PPAs provides the foundation for its renewable growth by securing stable, contracted revenues and supporting new project development. These agreements underpin a 33-gigawatt (“GW”) backlog of signed projects, giving the company strong earnings visibility. Supported by this contracted pipeline, NextEra’s unit Energy Resources plans to significantly expand its renewable generation and storage portfolio, reinforcing long-term earnings growth as demand for clean electricity continues to rise.

Long-Term PPAs Boost Prospects of the UtilitiesLong-term PPAs benefit utilities by providing stable, contracted revenues, improving cash flow visibility and reducing exposure to power price volatility. This supports infrastructure investments, strengthens earnings stability and enables continued expansion of reliable, clean energy generation.

Other than NextEra Energy, Dominion Energy (D - Free Report) and Duke Energy (DUK - Free Report) are well positioned to benefit from long-term PPAs. These agreements provide stable, predictable revenues, support renewable energy investments, reduce market risk and improve earnings visibility, enabling both utilities to meet growing demand for reliable, low-carbon electricity while supporting long-term growth.

NextEra’s Earnings Estimates Moving NorthThe Zacks Consensus Estimate for NEE’s 2026 and 2027 earnings per share indicates a year-over-year increase of 8.09% and 8.68%, respectively.

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NextEra Price PerformanceShares of NextEra have gained 6.2% in the past six-month period compared with the Zacks Utility - Electric Power industry’s rally of 8.5%.

Price Performance (Six months)
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NEE Stock Returns Better Than Its IndustryReturn on equity (“ROE”) is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.

NextEra’s trailing 12-month ROE is 12.25%, ahead of the industry average of 11.21%.

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