Track market-moving stories before they get noisy

Nvidia NVDA shares edged higher on Wednesday as the chipmaker stabilized following a broader semiconductor-sector selloff, with market participants assessing whether the stock is establishing a new trading range.

Despite recent volatility, the stock has largely held above the psychologically important $200 level since breaking out of its previous range in April.

The move comes as investors weigh Nvidia’s relative underperformance against the broader semiconductor sector.

The stock is up 7.3% so far this year, compared with a roughly 90% gain for the PHLX Semiconductor Index over the same period.

Still, technical and valuation signals suggest some support for the stock at current levels.

Nvidia has only briefly fallen below $200 in recent months and has tended to rebound on dips around that level.

The company is trading at a forward price-to-earnings ratio of 19.34 times, according to FactSet, slightly below the S&P 500 average of 20.77 times.

Analysts suggest this valuation could attract investors looking for relative value, potentially limiting further downside.

Nvidia is also returning significant capital to shareholders through dividends and buybacks, distributing about 50% of free cash flow.

Based on expected free cash flow of $195.35 billion in 2026, the company could return more than $97 billion to investors.

However, expectations for a sustained breakout remain tied to product cycle developments.

Investors are watching the rollout of Nvidia’s next-generation Vera Rubin chips, which are expected to enter the market in the second half of the year.

Market participants say the company will need to demonstrate continued dominance in artificial intelligence hardware to drive the next leg higher.

Nvidia’s AI chips have seen sharply higher prices on China’s black market, more than doubling over the past six months, according to a Financial Times report.

The increase comes amid tighter US enforcement of export controls restricting access to advanced semiconductors.

The DGX B300 server, which contains eight Blackwell graphics processing units, has risen in price to more than 8 million yuan ($1.1 million), up from around 4 million yuan, based on interviews with Chinese chip traders.

The system typically sells for about $400,000 in the United States.

Similarly, the RTX 6000 Pro workstation chip, used in large language model development, has increased from roughly 50,000 yuan at the start of the year to as much as 130,000 yuan, according to the report.

Both products are subject to US export restrictions on sales to China.

The surge in unofficial pricing follows a series of enforcement actions.

In March, a Supermicro co-founder, along with a Taiwan-based employee and a contractor, was charged with allegedly smuggling $2.5 billion worth of Nvidia AI servers to Chinese customers in what is described as the largest US enforcement case related to AI chip exports.

© wellesenterprises / iStock Editorial via Getty Images

Qualcomm (NASDAQ:QCOM | QCOM Price Prediction) shares have whipsawed into the chipmaker’s Investor Day, and our model says the post-selloff setup looks compelling on the data.

With the stock at $204.13 after a 8.01% single-day drop, our 24/7 Wall St. price target for Qualcomm is $278.13, implying 36.25% upside over the next 12 months. Our model frames this as a high-conviction setup with 90% confidence.

Metric Value Current Price $204.13 24/7 Wall St. Price Target $278.13 Upside 36.25% Model Stance Bullish (research view) Confidence Level 90% A Brutal Setup Into Investor Day Qualcomm has been the most volatile large-cap semi. Shares are down 4.64% over the past week and 13.96% over the past month, yet still up 20.57% year to date and 36.11% over the past year. Tuesday’s 8% slide was driven by SK Hynix HBM capacity slowdown, a Bank of America Underperform reiteration, and balance-sheet concerns around a reported $4 billion deal for AI software startup Modular and a rumored $8 to $10 billion bid for Tenstorrent.

Fundamentals remain solid. Q2 FY26 revenue of $10.60 billion and non-GAAP EPS of $2.65 both beat consensus, marking eight straight quarters of EPS beats. Automotive hit a record $1.33 billion (+38% YoY) and IoT grew 9%, while CEO Cristiano Amon confirmed the “leading hyperscaler custom silicon engagement is on track for initial shipments later this calendar year.”

Why Bulls See a Breakout Above $280 The bull case is straightforward: Qualcomm is no longer just a handset company. Combined Automotive plus IoT grew 20% YoY in Q2, the Alphawave Semi acquisition closed in Q1, and the pending Modular deal would hand Qualcomm a credible CUDA alternative via the MAX inference framework and Mojo programming language.

JPMorgan recently raised its target to $265, citing expectations that today’s Investor Day will reveal “significant data center revenue targets for 2027 and beyond.” Our bull-case scenario points to $288.34, a 41.25% return, with capital return cushioning downside via a fresh $20 billion buyback authorization.

The Risks Worth Watching Several headwinds warrant attention. Handsets fell 13% YoY in Q2, operating income dropped 26% YoY, and Q3 guidance of $9.2 to $10 billion revenue with EPS of $2.10 to $2.30 implies further sequential softness. Bank of America argues Qualcomm faces “hyper-competition in the AI data center market” with much upside already priced in, and the consensus analyst target sits at $183.83, below current levels.

GuruFocus flagged the stock as modestly overvalued versus a GF Value of $175.34, and net insider selling adds caution. The counterfactual: operating income compression reflects acquisition integration costs and heavy data center investment, and management still expects Chinese handsets to bottom in Q3 and grow sequentially in Q4. Our bear-case scenario lands at $222.75.

Qualcomm Price Prediction 2026 to 2030 Our 24/7 Wall St. price target of $278.13 reflects a buy rating with 90% confidence. At a PEG ratio of 0.958 and 21x forward earnings, Qualcomm trades at a discount to peers despite eight consecutive beats and entering two new multi-billion-dollar markets.

The thesis strengthens if today’s Investor Day confirms a concrete 2027 data center revenue ramp. The thesis weakens if management defers specifics and handset weakness extends past Q3.

Looking ahead, here is where our model projects Qualcomm could trade, assuming the data center ramp executes and Automotive growth holds.

Year 24/7 Wall St. Price Target 2026 $278 2027 $330 2028 $385 2029 $430 2030 $487 These projections assume Qualcomm executes on fiscal 2029 revenue goals and the hyperscaler silicon program scales. Significant upside or downside could result from Modular and Tenstorrent integrations, China policy shifts, or Apple modem insourcing accelerating faster than expected.

Adobe (ADBE +0.67%) shares have plunged by more than 40% year to date. The stock trades below $200, a far cry from when the stock nearly touched $700 per share.

Artificial intelligence is on most investors' minds, especially with how easy it is to create images with AI tools. However, this fear has resulted in an unreasonably low valuation for a company that is still growing.

Image source: Getty Images.

Addressing the AI concern Software stocks sold off broadly amid concerns that artificial intelligence would replace software businesses, rendering them obsolete. Claude's Cowork demonstrated that its generative AI could replace software. While it's a major AI innovation, it's easy for investors to overestimate how quickly new technology will move and whether existing software businesses will become obsolete.

Adobe isn't the only software stock that has tumbled amid fears that SaaS companies may no longer be needed. Salesforce and Workday were both hit hard. Those two stocks have also lost more than 40% year to date.

While the surrounding narrative about Adobe and AI is that advanced technology can make Adobe obsolete, that is an extreme exaggeration that has driven the company's attractive 11 P/E ratio. Adobe's P/E ratio was in the mid-20s less than a year ago and comfortably held that position. Adobe can more than double in valuation alone.

Even the concerns about images are overblown. Getty Images proved there's little to worry about by securing a long-term deal with OpenAI. While AI is changing the digital landscape, investors are trading Adobe stock as if it were doomed to fail and wouldn't adapt.

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Adobe's fundamentals point to long-term growth Looking at Q1 results and the press release commentary makes the AI-fueled panic even more bizarre. Adobe delivered 12% year-over-year revenue growth in Q1, raised its full-year guidance, and cited "strong AI-driven demand across customer groups" as a major catalyst.

The company has a solid foundation, including $27.1 billion in annual recurring revenue. The company also generates over $500 million in annual recurring revenue from its AI segment, a figure that has more than doubled year over year.

Adobe continues to post net profit margins in the mid-20s. Its business is gaining market share despite the stock's year-to-date losses. That mismatch suggests Adobe can be a compelling long-term opportunity at current levels. Continued success with its AI products can strengthen the bullish narrative and reward investors who wait for the comeback story.

Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Adobe, Salesforce, and Workday. The Motley Fool recommends the following options: long January 2028 $330 calls on Adobe and short January 2028 $340 calls on Adobe. The Motley Fool has a disclosure policy.

A Pfizer logo is shown at a research facility in the La Jolla neighborhood of San Diego, California, U.S., September 30, 2025. REUTERS/Mike Blake/File Photo Purchase Licensing Rights, opens new tab

SummaryCompaniesNo proof of Pfizer's direct conspiracy to fix prices45 U.S. states, others sued over 80 generic drugsStates unavailable to commentJune 24 (Reuters) - Pfizer (PFE.N), opens new tab has been dismissed as a defendant in ​a sweeping antitrust lawsuit in which most U.S. states accused dozens of drugmakers ‌and executives of fixing generic drug prices.

In a decision on Tuesday, Chief Judge Michael Shea of the federal district court in Connecticut said the states failed to show that Pfizer and its former Greenstone unit ​conspired with rivals between 2010 and 2014 to rig bids and allocate customers for ​six drug products.

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These included generic versions of Eplerenone tablets for high blood ⁠pressure, Latanoprost drops for glaucoma, and four versions of Clindamycin phosphate for acne.

The states alleged ​that Greenstone executives exchanged more than 360 phone calls and text messages with the Swiss drugmaker ​Sandoz (SDZ.S), opens new tab to coordinate anticompetitive activity.

But the judge said no reasonable jury could find that New York-based Pfizer directly conspired to fix prices, knew of collusion by Greenstone when asked to approve price changes, or was ​liable because Greenstone — the authorized generic manufacturer of Pfizer-branded drugs — acted as its agent.

"Greenstone existed ​for the purpose of selling generic drugs for profit in addition to the strategic value that it provided ‌to ⁠its parent company," Shea wrote. "The states’ contention that it existed for the sole purpose of acting on its parent company’s behalf falls short."

LAWSUIT COVERS 80 GENERIC DRUGSThe dismissal came in a lawsuit brought by 45 U.S. states, the District of Columbia and four U.S. territories, accusing 36 defendants ​of conspiring to fix ​prices of 80 generic ⁠drugs, primarily for skin ailments.

Connecticut Attorney General William Tong has led the litigation, and New York Attorney General Letitia James filed papers opposing ​Pfizer's dismissal motion.

Tong's office had no immediate comment on Wednesday. James' ​office declined ⁠to comment.

Pfizer spun off Greenstone in a 2020 transaction that created Viatris (VTRS.O), opens new tab.

In a statement, Pfizer said it was pleased with the dismissal. It also said Greenstone was a "reliable and trusted supplier of affordable ⁠generic ​medicines for decades, and we will continue to vigorously defend ​against these claims."

Shea oversees two other antitrust lawsuits by state attorneys general related to generic drugs. Pfizer is a ​defendant in one of those cases.

Reporting by Jonathan Stempel in New York, Editing by Louise Heavens

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

After falling to $255 per share in late March, UnitedHealth Group (UNH 0.69%) stock has been on a heater. The leading health insurer has skyrocketed some 57% since March 30 and is currently trading at $408 per share. It went from being down 22% year to date as of March 30 to being up 24% year to date as of June 22.

The major catalyst for the recent spike is a move by the Centers for Medicare & Medicaid Services (CMS) to raise Medicare Advantage insurers' rates by 2.48% in 2027.

And Jim Cramer, host of CNBC's Mad Money, thinks it has more room to run. He said on his show recently:

Finally, we have UnitedHealth. It's another managed care play that's up for the same reason as Humana. The stock pulled back this afternoon, but the legendary CEO, Steve Hemsley, is back, and he's so good. A brutal stint of bad management before he got there. He's turning it around. UnitedHealth, buy it.

Image source: Getty Images.

Cramer also called UnitedHealth a "textbook safety stock." Is he right?

UNH is still a bargain The Mad Money host is absolutely on the money with this call. UnitedHealth stock is still a bargain, even after its recent surge.

While its valuation has crept up, it is still trading at just 21 times forward earnings. That's because it's still down considerably from the near-$600-per-share price it hit just over a year ago in April 2025, before the tariff crash.

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It may not return to $600 anytime soon, but 77% of Wall Street analysts rate it a buy, with a median price target of $420 per share.

Here are four quick reasons why UnitedHealth stock is a buy:

It smashed earnings estimates last quarter. It raised its 2026 earnings guidance. It's got a high yield and a consistent dividend. As a major healthcare stock, it tends to perform well in market downturns, making it a great defensive play. Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool recommends UnitedHealth Group. The Motley Fool has a disclosure policy.

Phillips 66 CEO Mark Lashier speaks at the Reuters Global Energy Forum in New York City, U.S., June 24, 2026. Julian Guideras/Handout via REUTERS Purchase Licensing Rights, opens new tab

CompaniesJune 24 (Reuters) - Phillips 66 (PSX.N), opens new tab CEO Mark Lashier said at the Reuters Global Energy Forum ​in New York on Wednesday that ‌refining and petrochemical earnings face greater volatility due to uncertainty from disruptions in the Strait ​of Hormuz.

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Lashier added that the company ​has taken about $1 per barrel of cost ⁠out of its refining business and ​is targeting $5.50 per barrel, while costs in California ​are around $15 a barrel.

"We actually have improved our yield of high-value products for our refineries, and ​we've enhanced our utilization, running our ​refiners at higher rates as we've lowered the cost," ‌he ⁠added.

Lashier noted that the company's significant investment in integration has paid off, allowing it to capitalize on market opportunities.

The company ​capitalized on ​high prices ⁠in California by moving refined products there when the state ​was dependent on costly Asian-linked supplies ​and ⁠also delivered North American crude to its East Coast refineries, which rely on ⁠the ​Atlantic basin, during a period ​of elevated oil prices.

Reporting by Pooja Menon in Bengaluru ​and Liz Hampton; Editing by Mark Porter

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

Key Takeaways PKX completed a 2.5-million-ton EAF at Gwangyang Steelworks as part of its decarbonization roadmap. POSCO estimates the new EAF can reduce carbon emissions by up to 75% versus blast furnaces. PKX is developing Haptang technology to produce premium low-carbon steel products by 2030. POSCO Holdings Inc. (PKX - Free Report) is accelerating its transition toward low-carbon steelmaking with the completion of South Korea’s largest electric arc furnace (EAF) at its Gwangyang Steelworks. The newly completed facility represents a major milestone in the company’s decarbonization strategy and its long-term goal of achieving carbon neutrality by 2050. 

The new EAF has an annual production capacity of 2.5 million tons of steel and was built with an investment of approximately KRW 600 billion (roughly $397 million). Construction began in February 2024 and took more than two years to complete. The facility will now serve as a cornerstone of POSCO’s low-carbon steel production system. 

Unlike traditional blast furnaces that depend on iron ore and coking coal, EAFs mainly use recycled steel scrap, reducing energy use and emissions. POSCO estimates the Gwangyang EAF can cut carbon emissions by up to 75% versus conventional steelmaking. 

POSCO is going beyond scrap-based steelmaking by developing its proprietary “Haptang” (hot metal mixing) technology, which blends molten iron from blast furnaces with steel produced in electric arc furnaces. The process is designed to maintain the quality standards required for premium steel products while reducing carbon emissions. Through this hybrid approach, PKX aims to mass-produce high-value products, including automotive steel sheets and electrical steel, by 2030. 

The EAF project forms part of POSCO’s broader decarbonization roadmap. The company views electric arc furnace technology as an important intermediate step toward its next-generation HyREX hydrogen-reduction steelmaking process, which is expected to play a central role in its long-term carbon-neutral production system. POSCO ultimately plans to transition from coal-based steelmaking toward hydrogen-based ironmaking and establish a fully decarbonized production structure by 2050. 

Per POSCO, the completion of the Gwangyang EAF represents a key milestone in advancing low-carbon steel production and reflects POSCO’s commitment to a decarbonized manufacturing model. The company noted that the facility will help meet rising global demand for sustainable steel products while enhancing its competitive position in the transition to a low-carbon economy. 

Shares of PKX have gained 8.5% in the past year against the industry’s 2.4% decline. 

Image Source: Zacks Investment Research

PKX Zacks Rank & Other Key PicksPKX currently carries a Zacks Rank #2 (Buy).

Other top-ranked stocks in the Conglomerates space include 3M Company (MMM - Free Report) , Marubeni Corporation (MARUY - Free Report)  and Griffon Corporation (GFF - Free Report) . ITT, MARUY and GFF carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for MMM’s current-year earnings is pegged at $8.71 per share, indicating an 8.1% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average earnings surprise being 4.6%. 

The Zacks Consensus Estimate for MARUY’s current-year earnings is pegged at $23.86 per share, indicating an 8.8% year-over-year decrease. Shares of MARUY have gained 48.7% over the past year. 

The Zacks Consensus Estimate for GFF’s current fiscal-year earnings is pegged at $5.17 per share. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with the average earnings surprise being 3.3%. 

Key Takeaways AbbVie gets EU approval for Skyrizi in children aged six and older with moderate-to-severe plaque psoriasis.Skyrizi's approval includes a new 55 mg pre-filled syringe for patients weighing under 40 kg.EU clears Maviret in acute HCV, making it the only treatment cleared for acute & chronic HCV in the region. AbbVie (ABBV - Free Report) announced that the European Commission (EC) has approved its blockbuster immunology drug, Skyrizi (risankizumab), for treating children and adolescents aged six years and above with moderate-to-severe plaque psoriasis who are candidates for systemic therapy.

The latest approval in the EU includes a new 55 mg pre-filled syringe designed for patients who weigh less than 40 kg, helping ensure appropriate dosing based on body weight.

The approval was based on data from the phase III OptIMMize-1 pediatric psoriasis program, which included data from two lead-in pharmacokinetic cohorts as well as data from the phase III OptIMMize-2 open-label extension study.

Skyrizi is currently approved for the treatment of adult patients with plaque psoriasis, psoriatic arthritis, Crohn's disease and ulcerative colitis, both in the United States and in Europe.

Skyrizi remains a key growth driver for AbbVie. Sales of the drug soared 29.2% year over year on an operational basis to $4.48 billion in the first quarter of 2026, accounting for nearly 30% of the company’s total revenues. The drug is seeing strong performance across all its approved indications.

ABBV’s Price PerformanceYear to date, shares of AbbVie have risen 4.4% compared with the industry’s growth of 4.5%.

Image Source: Zacks Investment Research

ABBV Wins EU Nod for Maviret in Acute HCVIn a separate press release, AbbVie announced that the European Commission has approved Maviret (glecaprevir/pibrentasvir) for the treatment of acute hepatitis C virus (HCV) infection with compensated liver disease (with or without cirrhosis) in adults and children aged three years and above.

Following the latest nod, Maviret became the only treatment to be approved for both acute and chronic HCV infection in the European Union. The broader indication could simplify treatment decisions and support ongoing efforts to eliminate HCV across the region.

The latest nod was based on data from the phase III study, which demonstrated Maviret to be a highly efficacious treatment for patients with acute HCV infection.

Maviret is approved in the United States under the trade name Mavyret for the treatment of acute and chronic HCV infection in adults and children aged three years and older.

Mavyret sales increased 8.6% on an operational basis year over year to $351 million in the first quarter of 2026.

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

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

Over the past 60 days, estimates for Kiniksa Pharmaceuticals’ 2026 EPS have increased from $1.09 to $1.24. Over the same period, EPS estimates for 2027 have risen from $1.54 to $1.70. KNSA shares have surged 44.2% year to date.

Kiniksa Pharmaceuticals’ earnings beat estimates in two of the trailing four quarters and missed in the remaining two quarters, with the average surprise being 1.53%.

Over the past 60 days, estimates for Immunocore’s 2026 bottom line have improved from a loss of 88 cents per share to earnings of 6 cents. Over the same period, EPS estimates for 2027 have risen from 24 cents to 87 cents. IMCR stock has lost 15.8% year to date.

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

Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have risen from $1.50 to $2.97, while estimates for 2027 have increased from $2.91 to $4.81 during the same time. LQDA shares have surged 114.7% year to date.

Liquidia’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 54.40%.

The artificial intelligence boom has created winners across the semiconductor industry, but few areas have benefited more recently than memory chips. Every AI server needs vast amounts of high-bandwidth memory (HBM) and DRAM to feed increasingly powerful processors from Nvidia (NASDAQ:NVDA | NVDA Price Prediction), Advanced Micro Devices (NASDAQ:AMD), and others. Without memory, even the fastest AI chip becomes a bottleneck.

That demand has transformed memory manufacturers into some of the market’s biggest winners. In the U.S., no company has benefited more than Micron Technology (NASDAQ:MU). The stock has surged roughly 270% year-to-date and 726% over the past year, even after suffering a 13% pullback during yesterday’s selloff. 

Yet a new development could alter where investors put their next dollar. South Korean memory giant SK hynix plans to begin trading American depositary receipts (ADRs) on the Nasdaq on July 10.

The question isn’t whether Micron remains a strong investment. It does. The real question is whether SK hynix now deserves a larger share of new capital.

The AI Memory Shortage Remains Intact The investment case for memory stocks remains straightforward. AI infrastructure spending continues to accelerate.

The world’s four largest hyperscalers are expected to spend hundreds of billions of dollars on AI infrastructure this year, and memory remains one of the industry’s tightest supply constraints. According to industry market-share data, three companies effectively control the entire HBM market:

Company HBM Market Share SK hynix 57% Samsung Electronics 22% Micron Technology 21% Those numbers tell investors something important. While Micron has become the primary U.S. beneficiary of the AI memory boom, SK hynix remains the industry’s dominant supplier.

The story looks similar in DRAM.

Company DRAM Market Share Samsung Electronics 38% SK hynix 29% Micron Technology 22% Others 11% In both critical memory categories, three companies control nearly the entire market. That’s a powerful position when demand continues to exceed supply.

Micron Is Still Winning Let’s be clear: nothing about SK hynix’s Nasdaq listing weakens Micron’s business. The memory chipmaker remains my favorite stock to own in 2026. The company has successfully moved up the value chain, becoming a major supplier of HBM used in AI accelerators. Revenue, margins, and earnings have all benefited from rising memory prices and persistent shortages.

Perhaps most importantly, Micron remains the only major U.S.-based producer competing at the highest levels of the memory market. That strategic position has become increasingly valuable as governments and customers seek supply-chain diversification.

Granted, Micron’s stock has delivered enormous gains. After a 726% run over the past year, expectations are far higher today than they were 12 months ago. That doesn’t make the stock unattractive, but it does raise the hurdle for future returns.

Why SK hynix Changes the Investment Equation SK hynix’s Nasdaq arrival gives U.S. investors something they haven’t had before: easy access to the memory industry’s market-share leader.

Surprisingly, many American investors have owned Micron simply because it was the most accessible pure-play memory stock available in U.S. markets. Beginning July 10, they’ll be able to buy shares in the company controlling 57% of the HBM market and holding the No. 2 position in DRAM.

That changes the calculus. If investors are looking to deploy fresh capital into the AI memory theme, SK hynix may offer the stronger opportunity because it leads the most important segment of the AI memory market. HBM has become the fuel powering modern AI systems, and SK hynix currently occupies the driver’s seat.

That said, this doesn’t create a sell signal for Micron. Far from it. The memory shortage remains intact, AI spending continues rising, and Micron still controls 21% of the HBM market and 22% of the DRAM market.

Key Takeaway In short, investors don’t need to dump Micron because SK hynix is joining the Nasdaq. Micron remains one of the strongest ways to invest in the AI infrastructure buildout and continues to benefit from robust demand for HBM and DRAM.

However, SK hynix’s July 10 ADR listing introduces a compelling new option, as it holds stronger competitive positions in the two memory categories driving AI growth. For investors putting new money to work after the recent selloff, SK hynix may deserve a larger allocation.

Ultimately, the smartest move may not be choosing one over the other. The AI memory shortage appears likely to persist for years, and owning the companies that dominate the market could prove far more important than trying to pick a single winner.

Micron Technology Inc will release its third-quarter earnings after the markets close on Wednesday. 

Despite fears of an AI bubble, Wall Street predicts positive results. Micron could report $35.5 billion in revenue—a 281% jump year-over-year (YOY), according to a Bloomberg analyst consensus cited by Yahoo Finance. 

Its DRAM (memory) and NAND (storage) revenues are expected to grow 288% and 256% YOY, respectively. 

Micron is also predicted by Bloomberg’s analysts to have earnings per share of $20.39, about a 967% increase YOY. However, consensus estimates cited by CNBC expect EPS to range from $20.17 to $20.42.

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Micron had a successful yearThe earnings report will come just two days after Micron’s shares (Nasdaq: MU) reached a new all-time high of $1,213.56. The stock price is up over 722% YOY and $268 year-to-date (YTD).

Shares of Micron have occasionally dropped alongside those of other chip manufacturers due to fears about over-investment in AI and the infrastructure that powers it.

Just yesterday, shares dropped more than 13% in response to concerns about a stock bubble in South Korea, following a large selloff and losses for both Samsung’s and SK Hynik’s shares. 

Explore Topicschipsmarketssemiconductor chipsstocksTaiwan Semiconductor Manufacturing Company

Ryan Cohen is the CEO of GameStop. GameStop GameStop CEO Ryan Cohen is so determined to buy eBay that he's taken his own $35 billion pay deal off the table.

Cohen has withdrawn the proposed compensation package because he wants to fully focus on revitalizing GameStop's business and acquiring eBay, GameStop said in a press release on Tuesday.

Cohen has reiterated his intention to acquire the online marketplace in recent days, despite the target being more than five times larger than GameStop, with a market value of $48 billion, and eBay rejecting Cohen's cash-and-stock offer in May.

Chewy's billionaire cofounder explained his interest in the tie-up during an episode of the "All-In" podcast released on Tuesday.

He highlighted the opportunity to cut eBay's bloated costs; to make it a big player in live commerce by using GameStop's roughly 1,600 US stores to fulfill orders and serve as studios for content creators; and to expand into digital collectibles by creating a marketplace for digital items in video games.

Cohen also said he'll put $500 million of his own money into the deal to demonstrate his conviction.

"When you look at how much the businesses together make sense, and then you look at the fact that it's within my circle of competence, I can't stop thinking about it," Cohen said.

In a June 19 interview with Piers Morgan, Cohen declined to rule out a hostile takeover, meaning he might attempt to buy the business against the board's wishes.

At Cohen's request, GameStop has removed the proposed CEO Performance Award from its proxy statement, it said in Tuesday's press release.

The video-game retailer's shareholders were poised to vote on the pay package ahead of the company's annual meeting on July 7.

Cohen stood to secure a total of 171.5 million share options if he grew GameStop's market value to $100 billion, and its adjusted profits to $10 billion. Those shares would be worth in excess of $35 billion

He's faced backlash over his proposed pay package. Michael Burry of "The Big Short" fame revealed in early May that he'd sold his GameStop stake because he was skeptical of the eBay deal, and suggested Cohen was pursuing the heavily dilutive transaction because it would help him hit his market cap and profit milestones, generating a huge payout for him.

GameStop noted in a filing that Cohen wouldn't have received a windfall purely for acquiring eBay, as his performance hurdles stood to be adjusted to reflect a stock-based acquisition.

In its press release, GameStop said it would provide fresh details about its plans to purchase eBay this week, including its strategic rationale and how it plans to run the combined company.

GameStop and eBay did not immediately respond to requests for comment.

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Theron Mohamed is a London-based correspondent on the Trending team at Business Insider. His coverage spans finance, investing, wealth, markets, and the economy.Theron joined BI in 2019 as a reporter at Markets Insider and rose to the rank of correspondent before moving to the Trending team in 2024. He previously covered tech, media, and telecom stocks for Investors Chronicle magazine and had a brief stint on the Financial Times' Data team. He interned at the Wall Street Journal in New York where he primarily wrote for Heard on the Street.Theron has freelanced for The Independent, The Telegraph, WIRED, and several smaller publications. He holds an undergraduate degree in geography from the London School of Economics, and a master's degree in journalism from Columbia University.Theron often covers Warren Buffett, Michael Burry, Jeremy Grantham and other top-flight investors. He also writes about the world's wealthiest people and shares financial advice from all manner of rich and successful people.Email Theron at [email protected] and follow him on X @theron_mohamed.Expertise

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A scientist looks at hypometabolic and hypoperfusion patterns at the single-subject level from a patient suffering from Alzheimer's disease at the Memory Centre at the Department of... Purchase Licensing Rights, opens new tab Read more

CompaniesJune 24 (Reuters) - ALZpath said on Wednesday it had signed a global licensing agreement with Abbott Laboratories (ABT.N), opens new tab to help advance blood-based ​testing for Alzheimer's disease, as companies race to offer ‌easier-to-use diagnostic options for the brain-wasting disease.

Here are some more details:

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Abbott will incorporate ALZpath's antibody into a test designed to run on its Alinity ​laboratory systems.

Blood tests offer an alternative to diagnosing Alzheimer's, ​which has been traditionally diagnosed through expensive and invasive ⁠PET imaging and cerebrospinal fluid analysis.

The California-based company has previously ​partnered with Roche, Beckman Coulter and Siemens Healthineers.

ALZpath CEO Mike Banville ​told Reuters exclusively that the company has opted to partner with firms through licensing agreements, as this approach enables it to reach patients more ​quickly with its blood-based test.

"With Abbott on board... we will ​now have 80% of the in-vitro diagnostic market, roughly, using the ALZpath antibody," ‌Banville ⁠added.

The test targets pTau217, a blood marker linked to changes seen in Alzheimer's disease.

ALZpath scientific adviser Henrik Zetterberg said that pTau217 is a "bit of a revolution in detecting Alzheimer's disease early." ​The marker can ​reveal changes years ⁠before dementia sets in, and help assess patients with memory symptoms.

Regulatory progress is expected in the ​coming months, with U.S. approvals for some partners ​anticipated ⁠in the back half of the year, Banville said.

Blood tests, including one developed by Japan-based Fujirebio, have already received U.S. regulatory clearance, opens new tab for ⁠Alzheimer's ​diagnosis.

ALZpath did not disclose the financial terms ​of the deal with Abbott, but Banville said the partnership follows a royalty-based ​licensing model.

Reporting by Sahil Pandey in Bengaluru; Editing by Shinjini Ganguli

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Built from the ground up for current and future LLMs across the industry

Developed from design to production in nine months, accelerated by OpenAI’s models

Will deliver performance per watt better than current state-of-the-art, based on early testing

Expands OpenAI’s full-stack platform, from products to models and now to chips

To be deployed at gigawatt scale with data center partners, over multiple generations

SAN FRANCISCO and PALO ALTO, Calif., June 24, 2026 (GLOBE NEWSWIRE) -- OpenAI and Broadcom (NASDAQ: AVGO) today unveiled Jalapeño, OpenAI’s first Intelligence Processor: an accelerator architected around OpenAI’s vision for the future of LLM inference, and the first AI accelerator in a multi-generation compute platform the companies are building together to make advanced AI faster, more reliable, and more accessible to more people.

Jalapeño was delivered to OpenAI CEO Sam Altman and President Greg Brockman by Broadcom President and CEO Hock Tan and Semiconductor Solutions President Charlie Kawwas, marking an important step in OpenAI’s strategy to build the full stack behind its models and products.

OpenAI designed the chip from scratch around its deep understanding of LLM fundamentals, informed by its roadmap of models, kernels, serving systems, and product needs, with partners Broadcom and Celestica, helping industrialize the platform through chip implementation, board, rack system integration, high-performance networking, and scalable production systems. Jalapeño is designed with flexibility to work with all LLMs guided by OpenAI's insights into the inference needs of current and future AI models across the industry. Engineering samples of the Jalapeño chip are running ML workloads in the lab at production target frequency and power, including GPT-5.3-Codex-Spark.

While OpenAI is still measuring final performance, early testing shows that Jalapeño will deliver performance per watt substantially better than current state-of-the-art. A detailed technical report on performance will be presented in the coming months. The architecture reduces data movement and balances compute, memory, and networking resources to achieve realized utilization much closer to theoretical peak performance. Broadcom’s silicon implementation and networking technologies, including Tomahawk networking silicon, help bring the platform to large-scale production.

“The world is moving to a compute-powered economy,” said Greg Brockman, President and Co-Founder, OpenAI. “Jalapeño is part of our long-term full-stack infrastructure strategy to make compute more abundant, resulting in AI which is faster, more reliable, more affordable for people and businesses, and can be used to solve more important problems. By designing more of the stack ourselves, we can serve more intelligence with greater efficiency and keep pushing advanced AI toward broader access.”

“Jalapeño was designed from the ground up for LLM inference using detailed insights from our close collaboration with OpenAI researchers,” said Richard Ho, who leads OpenAI’s hardware program. “We optimized the architecture around the kernels, memory movement, networking, and serving patterns that matter most for frontier AI models. Based on early testing, Jalapeño will efficiently execute our most important workloads close to the hardware’s theoretical limits.”

“Our collaboration with OpenAI represents a fundamental commitment to scaling the physical infrastructure required for the next decade of AI,” said Hock Tan, President and CEO, Broadcom. “This is just the beginning of a multi-generation roadmap. By co-developing our industry-leading silicon directly with OpenAI, we are enabling the deployment of gigawatt scale data centers with Microsoft and other partners beginning in 2026.”

Designed to be the best inference platform for LLMs

Jalapeño is a blank-slate design for modern LLM inference, not a general-purpose accelerator adapted from earlier AI workloads. It is informed by the systems OpenAI runs every day across ChatGPT, Codex, the API, and future agentic products, while also being designed for current and future LLMs across the industry. The goal is to combine the power and throughput of today’s leading AI accelerators with latency closer to the fastest specialized inference systems, making Jalapeño well suited for interactive LLM products at scale.

Nine-month tape-out, accelerated by OpenAI models

Jalapeño was co-developed from initial design to manufacturing tape-out in just nine months, and the custom AI accelerator program represents what may be the fastest ASIC development cycle ever achieved in high-performance advanced semiconductors. That speed reflects deep software-hardware co-development with OpenAI’s engineering teams, Broadcom’s silicon implementation expertise, and the use of OpenAI models to accelerate parts of the design and optimization process.

The same models served to users are helping improve the infrastructure used to run future models. If AI can help engineers design better chips faster, it can lower the cost of compute across the industry and help democratize access to advanced AI.

Building a multi-generation platform with partners

Jalapeño is the first step in a multi-generation compute platform designed for initial deployment by the end of 2026, and expanding in the years ahead, combining OpenAI-designed accelerators with Broadcom silicon implementation, networking, and connectivity technologies; and Celestica’s board, rack and system expertise.

Additional Resource

Read the OpenAI blog post

About OpenAI

OpenAI is an AI research and deployment company. Our mission is to ensure that artificial general intelligence benefits all of humanity.

About Broadcom

Broadcom Inc. (NASDAQ: AVGO) is a technology leader that designs, develops, and supplies semiconductors and infrastructure software for global organizations' complex, mission-critical needs. Broadcom combines long-term R&D investment with superb execution to deliver the best technology, at scale. Broadcom is a Delaware corporation headquartered in Palo Alto, CA. For more information, visit www.broadcom.com.

Press Contacts

OpenAI: [email protected]

Broadcom: [email protected]

Cautionary Note Regarding Forward-Looking Statements

This announcement contains forward-looking statements (including within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended) concerning Broadcom. These statements include, but are not limited to, statements regarding Broadcom’s collaboration with OpenAI in delivering Jalapeño to OpenAI and Broadcom helping bring OpenAI’s full-stack platform to large-scale production to enable the deployment of gigawatt scale datacenters. These forward-looking statements are based on current expectations and beliefs of Broadcom’s management, current information available to Broadcom’s management, and current market trends and market conditions, and involve risks and uncertainties that may cause actual results to differ materially from those contained in the forward-looking statements. Accordingly, undue reliance should not be placed on such statements.

Particular uncertainties that could materially affect future results include risks associated with: global political and economic conditions and uncertainty; government regulations, trade restrictions and trade tensions; fluctuations in the timing and volume of significant customer demand; ability to make successful investments in research and development and successfully expand Broadcom’s business strategy or adopt Broadcom’s business models; ability to continue winning business and the timing of such wins; dependence on contract manufacturing and outsourced supply chain; dependency on a limited number of suppliers; dependence on senior management and the ability to attract and retain qualified personnel; ability to protect against cybersecurity threats and a breach of security systems;
ability to accurately estimate customers’ demand and adjust the manufacturing and supply chain accordingly; ability to improve manufacturing capacity and quality; involvement in legal proceedings; quarterly and annual fluctuations in operating results; Broadcom’s competitive performance; ability to maintain or improve gross margin; ability to protect Broadcom’s intellectual property and the unpredictability of any associated litigation expenses; significant indebtedness and the need to generate sufficient cash flows to service and repay such debt; and other events and trends on a national, regional, industry-specific and global scale, including those of a political, economic, business, competitive and
regulatory nature.

Broadcom’s filings with the Securities and Exchange Commission (SEC) are available without charge at the SEC’s website at https://www.sec.gov and include some important risk factors that may affect future results. Broadcom undertakes no intent or obligation to publicly update or revise the forward-looking statements made in this announcement, except as required by law.

-

PHOENIX--(BUSINESS WIRE)--Freeport (NYSE: FCX) announced today that its Board of Directors declared cash dividends of $0.15 per share on FCX’s common stock payable on August 3, 2026, to shareholders of record as of July 15, 2026. The declaration includes a base dividend of $0.075 per share and variable dividend of $0.075 per share in accordance with FCX's performance-based payout framework. The payment of dividends is at the discretion of the Board, which will consider FCX's financial results, cash requirements, global economic conditions and other factors it deems relevant.

FREEPORT: Foremost in Copper

FCX is a leading international metals company with the objective of being foremost in copper. Headquartered in Phoenix, Arizona, FCX operates large, long-lived, geographically diverse assets with significant proven and probable reserves of copper, gold and molybdenum. FCX is one of the world’s largest publicly traded copper producers.

FCX’s portfolio of assets includes the Grasberg minerals district in Indonesia, one of the world’s largest copper and gold deposits; and significant operations in the U.S. and South America, including the large-scale Morenci minerals district in Arizona and the Cerro Verde operation in Peru.

By supplying responsibly produced copper, FCX is proud to be a positive contributor to the world well beyond its operational boundaries. Additional information about FCX is available on FCX's website at fcx.com.

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Key Takeaways KR is tied to food retail shifts as investors watch digital demand, value trends and margin pressure.Kroger Precision Marketing profit rose over 20%, aided by traffic and advertiser commitments.Our Brands gained share, while e-commerce sales rose 19% and turned profitable with media. The Kroger Co. (KR - Free Report) is increasingly a window into the forces reshaping food retail. Investors are watching more than identical sales as grocery operators adapt to digital demand, value-seeking shoppers and margin pressure.

Kroger’s scale, loyalty data, private-label reach and omnichannel model give it several structural levers. The question is whether those trends can translate into cleaner earnings momentum.

Why Kroger Is Leaning Into Retail MediaKroger Precision Marketing remains one of KR’s clearest high-margin growth drivers. Profit from the business grew more than 20% in the first quarter of fiscal 2026, supported by stronger on-site traffic and increased advertiser commitments.

The appeal is Kroger’s data advantage. Management noted that 95% of transactions are tied to a loyalty card, backed by more than 20 years of history. Partnerships with Google’s Display & Video 360 and TikTok, along with artificial intelligence tools for audience creation and budget allocation, widen the retail media opportunity.

Image Source: Zacks Investment Research

How KR Benefits From Trade-Down BehaviorA pressured consumer backdrop makes private label more important. Kroger’s Our Brands portfolio helps the company meet affordability needs without relying only on price cuts.

Our Brands was described as an approximately $39 billion business in fiscal 2025. In the first quarter of fiscal 2026, it gained share and outpaced national brands by 175 basis points, with Simple Truth and Private Selection showing momentum.

Why Kroger’s Digital Model Is EvolvingKroger’s digital growth is shifting toward faster and more practical convenience. Adjusted e-commerce sales increased 19% in the first quarter, led by delivery.

Under-one-hour convenience orders represented roughly 50% of digital growth. E-commerce, including media, also turned profitable for the first time, helped by store-based fulfillment, lower cost to serve and the closure of three fulfillment centers.

What KR Reveals About Margin PressuresKroger also shows that scale does not remove pressure from the grocery model. Gross margin was 22.7% in the first quarter of fiscal 2026, down from 23% a year earlier.

The decline reflected higher transportation costs, egg deflation, planned price investments and mix factors. Transportation alone created a 15-basis-point headwind, while pharmacy-related sales pressure included a 130-basis-point Inflation Reduction Act impact.

Walmart Inc. (WMT - Free Report) remains a key comparison because it competes across grocery, value and retail media. Target Corporation (TGT - Free Report) is also relevant as retailers use owned brands and advertising platforms to protect customer engagement and improve economics.

How KR’s Signals Fit These Industry ShiftsKroger’s emerging trends are attractive, but the investment case is not one-sided. Retail media, private label and profitable digital growth point to better long-term optionality, while transportation inflation, promotional investment and pharmacy sales drag keep near-term expectations measured.

The stock currently carries a Zacks Rank #3 (Hold). That rank suggests a balanced near-term outlook rather than a clear positive or negative earnings-revision signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

KR has a Value Score of A and a VGM Score of A, indicating favorable valuation and combined style characteristics. Its Growth Score of B also supports the longer-term case, but the Momentum Score of D shows weaker price action. For now, the market still wants more proof that these industry shifts can lift stock performance.

Along with solid earnings results, cloud-based cybersecurity leader CrowdStrike (CRWD 0.34%) announced a 4-for-1 stock split, which will go into effect on July 2. This will help make CrowdStrike's stock more accessible to retail investors after it has soared by roughly 60% so far in 2026.

To be sure, CrowdStrike's business has been performing exceptionally well, and it has some massive opportunities ahead of it. But after the stock's rapid rise this year, is it still worth buying before its split goes into effect?

Image source: Getty Images.

As mentioned, CrowdStrike will start trading on a split-adjusted basis on July 2. You may see some other dates mentioned, such as a record date, but for most investors, here's the key point. If you own 100 shares of CrowdStrike today, you'll have 400 shares in your portfolio when you log into your brokerage account on July 2, with each of those shares trading for about one-fourth of their previous value.

Excellent business momentum CrowdStrike's business is performing quite well, with 26% year-over-year revenue growth in its most recent fiscal quarter. It added $256 million in net new annual recurring revenue (ARR), the most added in a fiscal first quarter in company history. On the bottom line, CrowdStrike generated $468 million in free cash flow, an all-time high, and it handily beat earnings expectations.

Today's Change

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Not only that, but we're seeing clear signs that the agentic AI revolution is likely to be a big tailwind for CrowdStrike, not a threat as many originally thought. CEO George Kurtz said that "CrowdStrike is AI security infrastructure, critical to successful AI adoption."

Not a cheap stock The biggest risk factor for investing in CrowdStrike is valuation. While shares trade for about 12% below recent highs, the company is still valued at about 34 times trailing revenue, one of the highest multiples for a large-cap stock in the S&P 500.

It's fair to say that CrowdStrike is pricing in quite a bit of ARR growth at these levels. If it becomes the go-to cybersecurity platform for agentic AI security over the next few years, the current valuation could look cheap. But a lot will need to go right to justify the stock's current price, and any missteps could cause significant volatility.

To be clear, this is an excellent business. But it's not a good idea to buy CrowdStrike (or any other stock for that matter) just because it is splitting its shares. If you decide to buy, be aware that you're paying a hefty premium, and size your position accordingly.

-

All amounts in Canadian dollars unless specified otherwise.

This news release constitutes a “designated news release” for the purposes of Cameco’s prospectus supplement dated November 12, 2024, to its short form base shelf prospectus dated November 12, 2024.

SASKATOON, Saskatchewan--(BUSINESS WIRE)--Cameco Corporation (TSX: CCO; NYSE: CCJ) welcomes today’s announcement by the US Department of Energy’s (DOE) Office of Energy Dominance Financing (EDF) regarding its conditional commitment for the American Nuclear Supply Chain Loans to reenergize the large-scale nuclear reactor supply chain, drive down costs and accelerate the deployment of AP1000 reactors in the US and globally. The DOE’s conditional commitment for a loan package of up to US$17.5 billion is expected to provide the majority of the financing for Westinghouse Electric Company (Westinghouse) to purchase the long-lead time items for up to 10 AP1000 nuclear reactors in the United States.

“We are pleased to see the US government make this additional commitment to expanding nuclear power capacity using the proven AP1000 reactor technology,” said Tim Gitzel, CEO of Cameco. “When combined with the May 23, 2025 Executive Orders and other US government initiatives, we believe the right incentives are being created to advance the rapid deployment of AP1000 reactors in the US. The expansion of nuclear power in the United States is expected to create significant opportunities for Westinghouse and Cameco, accelerating growth in Westinghouse’s energy systems segment during the procurement and subsequent construction phase.”

While this conditional commitment indicates the DOE’s intent to provide a loan to finance these projects, Westinghouse, its owners, and its partners must satisfy certain technical, legal, environmental, and financial conditions before DOE enters into definitive financing documents and funds the loan.

Background

Brookfield Renewable Partners (Brookfield) and Cameco acquired Westinghouse in November 2023. The partnership brought together Cameco’s expertise in the nuclear fuel supply chain with Brookfield’s recognized position as one of the world’s largest investors in energy generation technologies.

We expect the DOE loan arrangement to be implemented through a special purpose vehicle of Westinghouse (SPV) that will administer the loan funding for up to five project funding vehicles jointly owned by Westinghouse and the applicable partner for the procurement of the long-lead items at a fixed price for two reactors per project. Both the SPV and the approved partner are required to fully commit their project equity totaling approximately $500 million each or $1 billion per project upfront prior to accessing DOE loan funds. As approved partners reach final investment decisions for the applicable projects, the DOE loan is expected to be repaid from the proceeds of the sale of the long-lead items.

The loan package arrangements contemplated by the conditional commitment are subject to, among other risks, the factors discussed below under “Caution about Forward Looking Information” and remain subject to Westinghouse, its owners, and its partners satisfying certain technical, legal, environmental, and financial conditions with DOE, negotiation and completion of definitive agreements, any required approvals, and other customary conditions. There can be no assurance that definitive agreements will be entered into or that the proposed loan package will be completed on the terms currently contemplated, or at all.

We are separately advancing discussions on the strategic partnership entered into among Brookfield, Cameco and the US Department of Commerce in October 2025.

Caution about Forward-Looking Information

This news release includes statements and information about Cameco’s expectations for the future, which we refer to as forward-looking information. Forward-looking information is information that is not a historical fact. Words such as “guidance,” “expect,” “will,” “may,” “anticipate,” “plan,” “estimate,” “project,” “intend,” “should,” “can,” “likely,” “could,” “outlook” and similar expressions are intended to identify forward-looking information. Forward-looking information is based on Cameco’s current views, which can change significantly, and actual results and events may be significantly different from what we currently expect. Examples of forward-looking information in this news release include: the entering into the loan package of up to US$17.5 billion, the expected initiation of orders for long-lead items, the commitment of project equity, the expected repayment of the DOE loan from the proceeds of the sale of long-lead items, and the negotiation and execution of definitive agreements, satisfaction of closing conditions and any required approvals.

Material risks that could lead to different results include: the risk that definitive agreements are not entered into, that required approvals are not obtained, that conditions to completion including required technical, legal, environmental and financial conditions are not satisfied, that the proposed financing terms change materially, or that the proposed transaction is not completed.

In presenting the forward-looking information, Cameco has made material assumptions which may prove incorrect about the ability of the parties to negotiate and execute definitive agreements, obtain any required approvals, satisfy closing conditions, and complete the proposed transaction on acceptable terms or at all.

Please also review the discussion in Cameco’s 2025 annual MD&A, 2026 first quarter MD&A and most recent annual information form for other material risks that could cause actual results to differ significantly from Cameco’s current expectations, and other material assumptions we have made. We will not necessarily update this information unless we are required to by securities laws.

Profile

Cameco is one of the largest global providers of the uranium fuel needed to power a secure energy future. Our competitive position is based on our controlling ownership of the world’s largest high-grade reserves and low-cost operations, as well as significant investments across the nuclear fuel cycle, including ownership interests in Westinghouse Electric Company and Global Laser Enrichment. Utilities around the world rely on Cameco to provide global nuclear fuel solutions for the generation of safe, reliable, carbon-free nuclear power. Our shares trade on the Toronto and New York stock exchanges. Our head office is in Saskatoon, Saskatchewan, Canada.

As used in this news release, the terms we, us, our, the Company and Cameco mean Cameco Corporation and its subsidiaries unless otherwise indicated.

More News From Cameco Corporation

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Dave & Buster's Entertainment Today

PLAY

Dave & Buster's Entertainment

$12.08 +0.81 (+7.19%)

As of 12:27 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$9.61▼

$35.53Price Target$19.33

Dave & Buster’s NASDAQ: PLAY price action is not inspiring for bulls. The stock has trended lower for over two years and could continue to decline. The Q1 earnings release failed to meet expectations, setting the stage for new lows.

The caveat is that PLAY stock is already trading at historically low levels, aligning with lows plumbed during the height of COVID-19 fear, and there are signs of traction in the release.

Get PLAY alerts:

While comps remain an issue, the Back-to-Basics strategy is improving food sales and cash flow metrics, which are central to the stock price outlook. In this scenario, PLAY’s downtrend is played out, and price recovery lies ahead.

Dave & Buster’s Reverts to Free Cash Flow in Q1Dave & Buster’s is a growth story gone awry, but it is also trying to become a recovery and capital return story. The company has historically used cash flow to fund opportunistic share repurchases, which remain in play if the turnaround gains traction. While Q1 results failed to meet expectations, Dave & Buster’s reported a small quarterly profit and returned to positive adjusted free cash flow. The result was modest compared with prior periods, but it was enough to help the company build cash despite continued investment in new stores and remodels.

Looking ahead, management plans a less aggressive capital expenditure year for 2027 than initially reported, focusing on free cash flow (FCF) and the leverage it provides. Dave & Buster’s did not buy back shares in Q1 but will likely do so as the year progresses, given the FCF outlook. As it stands, trailing-12-month activity contributed to a 0.7% average share count reduction in FQ1.

Institutional trends suggest that they, too, will buy PLAY stock in July and summer 2026. The group owns more than 90% of the stock and, after selling in 2025, reverted to buying in 2026. Q1 activity reflects group rotation, with selling spiking alongside buying, but the overall balance is bullish for investors. Activity in early Q2 is less robust overall but comes with a far more bullish balance of approximately $2 bought for every $1 sold. The likely outcome is that buying accelerates amid lower stock prices, with critical support in the $8-$10 range.

Dave & Buster’s Falters on Weak Store TrafficDave & Buster’s Q1 results revealed some budding strengths but also persistent weaknesses. The company’s $559.2 million in net revenue was down 1.5% year-over-year (YOY) and came in $21.4 million below consensus on a 5.4% decline in comp sales. Comp sales are the critical factor in PLAY’s rebound thesis and are expected to provide a catalyst this year. As weak as the Q1 results are, management remains confident in the outlook for positive full-year comps and new-store growth. Store count is up approximately 4% as of Q1’s end and expected to rise by another 100 to 200 bps by year’s end.

The margin news is also uninspiring, but again, there is a catalyst at hand. Gross margin expanded incrementally but was offset by higher costs, resulting in profit compression. Cost increases, tied to wages and labor among other drivers, are accelerating deleveraging as revenue declines. The catalyst is the return to positive comp stores, revenue growth, and improving margins.

Analysts Wait and See: Trends Highlight Deep Value OpportunityDave & Buster’s analyst trends contributed to the stock price decline, as they are bearish, but the market has overreacted to the change. Trading around $12, the stock remains deeply discounted to analysts’ average price target, leaving meaningful upside if the turnaround gains traction. A move toward that target is unlikely without clearer evidence of recovery, but improving comps and profitability could provide the catalyst investors need. Until then, analysts remain cautious, with the consensus rating at Hold and the average price target near $20.

Dave & Buster's Entertainment Stock Forecast Today12-Month Stock Price Forecast:
$19.33
61.50% Upside

Hold
Based on 7 Analyst Ratings

Current Price$11.97High Forecast$30.00Average Forecast$19.33Low Forecast$12.00Dave & Buster's Entertainment Stock Forecast Details

Dave & Buster’s risk this year is high oil prices and inflation. High oil prices are underpinning inflation and impairing discretionary spending. In this environment, it may be difficult for PLAY to grow comp sales.

Debt is also a risk. The company carries significant debt, and maintenance spending cuts into cash flow. If the turnaround fails to gain traction by year’s end, the company’s ability to continue as-is will be in jeopardy.

Catalysts include a renewed focus on targeted store remodels, menu changes, new games and Eat-and-Play offers. Management’s Back-to-Basics strategy appears to be helping food and beverage sales, but the stock likely needs clearer evidence that those gains can translate into better traffic, stronger comps and improved margins. The company is also still opening new stores and expanding internationally through franchise partnerships, giving it longer-term growth levers if the core business stabilizes.

Should You Invest $1,000 in Dave & Buster's Entertainment Right Now?Before you consider Dave & Buster's Entertainment, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Dave & Buster's Entertainment wasn't on the list.

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Nuclear energy is entering a new growth cycle as rising power demand, expanding data centers, and renewed policy support bring the sector back into focus. After strong gains in recent years, the most impactful phase of nuclear investment may still be ahead. This report highlights seven nuclear energy stocks positioned across the value chain—combining near-term revenue with long-term upside as next-generation technologies scale. Click the link below to unlock the full list.

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Key Takeaways Rithm Capital expanded asset management to about $59B, aiming for more recurring fee income.RITM cut servicing costs per loan as technology initiatives target further efficiency gains in 2026.Rithm Capital still faces rate sensitivity as mortgage servicing rights drove a $204.2M fair-value decline. Rithm Capital Corp. (RITM - Free Report) is moving beyond a balance-sheet-heavy mortgage and real estate model. Its growth story now includes asset management, operating scale and technology-led efficiency at Newrez.

That shift matters because earnings still carry exposure to rates, mortgage servicing rights and fair-value swings. Investors may need to watch not only how much RITM earns, but how repeatable those earnings become.

How Rithm Capital Is Building Fee IncomeRithm Capital has been expanding its asset management platform across private credit, real estate, fund liquidity and other alternative strategies. The company had roughly $59 billion of assets under management as of March 31, 2026, up from $35 billion a year earlier.

Sculptor and Crestline are central to this push. Management has positioned the two as complementary platforms, with combined assets of roughly $60 billion managed and additional fundraising underway.

The strategy also fits Rithm Capital’s operating model. Newrez and Genesis can source asset-based finance opportunities that may feed investment products, giving the asset management arm a potential pipeline tied to businesses Rithm already controls.

Why RITM Wants More Scalable EarningsFee-centric operations can improve the quality of Rithm Capital’s earnings mix because they are less dependent on deploying balance-sheet capital. A larger asset management business could add recurring management fees and make growth more scalable.

That would be a meaningful contrast to income tied to mortgage assets, spreads and fair-value changes. Rithm Capital’s broader platform already spans mortgage origination and servicing, residential transitional lending, asset management, investment portfolio assets and commercial real estate.

Annaly Capital Management Inc. (NLY - Free Report) offers a useful industry comparison because it also operates in mortgage-related assets and mortgage servicing rights. PennyMac Mortgage Investment Trust (PMT - Free Report) , another mortgage-focused real estate investment trust, gives investors a second peer for judging how RITM’s platform breadth differs from more focused mortgage investment models. Viewed against NLY and PMT, RITM’s push toward asset management shows why scalability has become a more important part of its long-term earnings mix.

How Newrez Tech Could Change RITM MarginsNewrez remains Rithm Capital’s largest business and a core earnings engine. In the first quarter of 2026, it generated $273.7 million of pre-tax operating income, with $15.5 billion of funded production and $850 billion of servicing unpaid principal balance.

The next leg of the Newrez story is less about size alone and more about cost efficiency. Servicing costs per loan fell to $51 in the first quarter of 2026 from $54 in the prior quarter.

Technology is central to that margin effort. HomeVision automated underwriting tools, the ValonOS servicing transition and process automation are expected to reduce costs per loan over time. Management targets an additional 15% reduction from the current run rate in 2026.

Where Rithm Capital's Macro Exposure Still DominatesThe transition is still in progress, and macro exposure remains hard to ignore. As of March 31, 2026, nearly 20% of Rithm Capital’s total assets were directly tied to mortgage servicing rights and related financing receivables.

That exposure can work both ways. Higher rates generally support mortgage servicing rights valuations by reducing refinancing activity, but mortgage spreads, prepayment speeds and market volatility still affect results.

The first quarter showed how these forces can overshadow strategic progress. Rithm Capital reported a $204.2-million negative change in the fair value of mortgage servicing rights and related financing receivables, net of economic hedges.

How RITM's Ratings Reflect a Trend in ProgressThe bottom line is that Rithm Capital is building a more diversified, fee-oriented platform, but the stock does not yet carry the profile of a clear momentum story. The business mix is improving, while rate sensitivity and valuation swings remain major variables.

RITM currently carries a Zacks Rank #3 (Hold). That rank suggests a more balanced earnings estimate backdrop over the next one to three months rather than a clearly positive revision trend. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for 2026 and 2027 earnings has remained unchanged over the past month, pointing to a neutral setup.

Estimate Revision Trend

Image Source: Zacks Investment Research

The Style Scores reinforce that measured view. RITM has a Value Score of C, Growth Score of F, Momentum Score of D and VGM Score of F. Since Zacks Style Scores complement the Zacks Rank, weak Growth, Momentum and VGM readings indicate limited style-based support.

Over the past year, RITM shares have declined 18.1%, compared with the industry’s 19.1% decline.

Price Performance

Image Source: Zacks Investment Research

For now, RITM’s strategic direction is worth monitoring. The fee-income and technology-efficiency trends are encouraging, but the ratings and macro sensitivity argue for patience until estimate momentum or stock performance becomes more supportive.

Key Takeaways Rithm Capital trades well below industry valuation levels and below book value.RITM has covered common dividends with earnings available for distribution for 26 straight quarters.Rithm Capital faces liquidity and mortgage servicing rights risks despite its income appeal. Rithm Capital Corp. (RITM - Free Report) gives income-focused investors plenty to notice. The stock trades at a low earnings multiple, carries a double-digit dividend yield and sits below book value.

That combination can signal opportunity, but it can also reflect risk. RITM’s leverage, liquidity position and exposure to mortgage-related assets make the discount harder to treat as a simple bargain.

Valuation Suggests RITM Is Trading at a Deep DiscountRITM is trading at 4.02X forward 12-month price-to-earnings, far below the industry average. The stock’s own history also shows that the valuation is near the low end of its five-year range. Over that period, RITM has traded as high as 8.71X forward earnings and as low as 3.81X, with a five-year median of 6.15X.

Price-to-Earnings F12M

Image Source: Zacks Investment Research

The book-value discount adds to that case. RITM’s price-to-book ratio is 0.68, compared with 3.23 for the industry.

How Rithm Capital Supports a Big DividendThe dividend is central to RITM’s appeal. Rithm Capital’s board announced a quarterly cash dividend of 25 cents per share on June 22, 2026, payable on July 31 to shareholders of record as of July 2.

That payout translates into an annualized dividend of $1.00 per share and a yield of roughly 10.9%. For income investors, that is difficult to ignore.

The payout also has operating support. Earnings available for distribution have exceeded common dividends for 26 consecutive quarters, helped by Rithm’s mix of mortgage origination and servicing, residential transitional lending, asset management and commercial real estate.

Annaly Capital Management Inc (NLY - Free Report) and Redwood Trust, Inc. (RWT - Free Report) appear in the same industry peer set, giving investors other mortgage and real estate finance names to compare against. NLY has a dividend yield of 12.6% while RWT has a dividend yield of 14.9%.

Why RITM Is Not an Easy Value CallDiscounted valuation does not automatically mean mispriced. RITM shares have declined 18.1% over the past year compared with the industry’s fall of 19.9%.

Price Performance

Image Source: Zacks Investment Research

The earnings revision backdrop is not giving investors much of a near-term catalyst either. Earnings estimates for 2026 and 2027 have been unchanged over the past month, and the stock is viewed as having limited upside potential in the near term because of weak fundamentals and the absence of positive estimate revisions.

Estimate Revision Trend

Image Source: Zacks Investment Research

What Rithm Capital's Debt Profile ImpliesThe balance sheet helps explain why investors may demand a discount. As of March 31, 2026, Rithm Capital had total liquidity of $1.4 billion, compared with total debt of $39.5 billion, including short-term and long-term debt.

That gap can matter during economic stress or market volatility. A weaker liquidity position could make it harder for the company to support its business if funding conditions tighten or asset values move sharply.

RITM also has meaningful exposure to mortgage servicing rights and mortgage-related assets. Nearly 20% of total assets were directly tied to mortgage servicing rights and related financing receivables as of March 31, 2026.

The sensitivity is visible in recent results. In the first quarter of 2026, Rithm recorded a $204.2-million negative change in the fair value of mortgage servicing rights and related financing receivables, net of economic hedges.

How RITM's Ratings Shape the Buy DebateThe bottom line is that RITM offers income and valuation appeal, but the risk profile keeps the buy case measured. The stock currently carries a Zacks Rank #3 (Hold), which points to a neutral short-term setup rather than a strong earnings-revision signal. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Style Scores add to that balanced view. RITM has a Value Score of C, which supports a moderate value argument but stops short of confirming the stock as a top-tier value setup. The weaker style readings are harder to overlook. RITM carries a Growth Score of F, a Momentum Score of D and a VGM Score of F. Those grades reinforce why the stock may fit cautious income seekers better than investors looking for clear growth or momentum strength.

This week's news that Applied Materials Inc NASDAQ: AMAT has just crossed the price-to-sales valuation it held at the peak of the dot-com bubble in April 2000 might have been enough to get even the most committed bulls reaching for the Pepto.

Applied Materials Today

AMAT

Applied Materials

$591.47 +5.59 (+0.95%)

As of 12:26 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$154.46▼

$641.18Dividend Yield0.36%

P/E Ratio55.69

Price Target$501.26

That’s because headlines comparing a stock's valuation to its dot-com bubble level usually serve as a flashing red light for investors. When you consider just how big a tear the semiconductor equipment maker has been on, it’s somewhat understandable.

Get Applied Materials alerts:

Applied Materials’ share hit yet another fresh all-time high this week, as the multi-month rally continued to gain momentum. All told, the stock is up more than 140% year to date and a staggering 50% in the past month alone.

That kind of run is the kind that makes new highs, breaks technical models, and, eventually, attracts headlines like this one. The question for investors is whether that historical comparison is the warning sign it sounds like, or whether the current environment is different enough that the multiple is actually justified. Let's jump into it.

Why the Rally Is Anything But IrrationalThe starting point worth holding onto is that this isn't a 1999-style story of a company being bought purely on hope and hype. Applied Materials is genuinely benefiting from one of the most powerful structural tailwinds the semiconductor industry has ever seen. The team at Citi made that exact point earlier this week, raising its price target on the stock as it cited a "structural increase" in NAND demand driven by the explosion of agentic AI workloads.

The argument is technical, but still fairly intuitive when you boil it down. As AI workloads become more complex and demanding, they require a much larger memory pool than the fastest and most expensive memory types can practically provide. That's pushing the industry toward cheaper, higher-capacity alternatives, and Applied Materials sits at the heart of the equipment supply chain that makes those alternatives possible.

Coupled with ongoing innovation across the broader memory landscape, the team at Citi sees this shift as a structural tailwind that should continue to drive the company's earnings growth well into 2028. That's not a near-term sugar high. That's a multi-year trend that the bulls are betting will continue to drive revenue growth at rates most other tech stocks would kill for.

Analysts Are Unanimous in Their OutlookOverall MarketRank™83rd Percentile

Analyst RatingModerate Buy

Upside/Downside15.5% Downside

Short Interest LevelHealthy

Dividend StrengthModerate

News Sentiment1.11 Insider TradingSelling Shares

Proj. Earnings Growth31.90%

See Full Analysis

In fact, Applied Materials’ Moderate Buy consensus rating and the latest round of higher analyst price targets are another reason to avoid leaning too heavily on the dot-com comparison.

Citi’s $710 target, up from $550, still implies upside from recent highs, and the firm is far from alone.

Barclays, UBS Group and Cantor Fitzgerald are among the firms that have recently reiterated or raised bullish views on Applied Materials.

When well-regarded analysts continue to raise their targets, even after a stock has already gained 140% this year, it tells you something about their confidence in its growth trajectory.

The Risks Are Real TooFor all that, however, there's no escaping the sheer one-directional nature of the chart in recent months, or this week’s dot-com headline. Applied Materials’ relative strength index is also pushing into overbought territory, which can often set the scene for a sharp reset whenever sentiment starts swinging the other way.

There are also genuine fundamental concerns that shouldn't be ignored. Almost 30% of the company’s revenue comes from China, which leaves Applied Materials more exposed than most to any sudden trade-policy disruption or further restrictions on equipment exports.

How to Build a Position CarefullyFor investors looking to get involved, there’s plenty to consider. The bull case is genuine, the structural demand picture is compelling, and the analyst community is firmly in the camp of higher prices ahead. But the chart is also stretched, the valuation is at historically extreme levels, and one-directional rallies tend to find their reckoning eventually.

For investors looking to chase this entry, that probably means resisting the urge to go all-in on a single position and instead building it up in stages. A starter position now, with the discipline to add on the pullbacks that almost certainly lie ahead, is likely a smarter way to play this than trying to time the absolute top. The dot-com comparison may make for an uncomfortable headline, but the difference between 2000 and 2026 is that this time, the demand is genuinely there. The trick is to make sure you don't pay too much for it.

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Shares of Best Buy BBY have declined following the announcement that Matt Bilunas, the company's Chief Financial and Strategy Officer, will depart at the end of July. This marks a significant leadership transition as Jason Bonfig is set to take over as CEO on November 1. Investors are concerned about the timing, as the company navigates a leadership change while facing challenges such as cautious consumer spending and margin pressures.

Leadership Setup: Bilunas has been with BBY for 20 years, overseeing finance, strategy, procurement, financial services, real estate, and omnichannel operations. His departure represents a broader change than a typical CFO transition. Transition Risk: Best Buy is engaging an external search firm to find a successor with prior CFO experience. Current CEO Corie Barry, a former CFO herself, will provide financial oversight during the transition if necessary. Operating Momentum: The company's recent performance has shown improvement, with better-than-expected Q1 profitability and eight consecutive quarters of positive computing comparisons. Margin Framework: For FY27, Best Buy anticipates a gross profit rate improvement of about 30 basis points, supported by initiatives like Best Buy Ads and U.S. Marketplace, although core product margins are under pressure from promotional activities. Demand Friction: BBY is encountering a mixed consumer-electronics market, with value-focused shoppers and softness in home theater and appliances, despite some strengths in certain categories. Capital Returns: The company has maintained its quarterly dividend of $0.96 and plans approximately $300 million in share repurchases for FY27, indicating that the leadership transition has not altered its capital-return strategy.The key takeaway is that while BBY's operational plan appears stable, the departure of the CFO adds execution and communication risks during this critical CEO transition. Investors are particularly attentive as the company manages multiple challenges, including a fragile consumer-electronics recovery and uncertainties in component costs and pricing. The transition does not inherently signal operational issues, especially with Barry's oversight and Bonfig's involvement in the company's digital strategy. However, the urgency for a credible successor announcement increases, and positive sentiment may hinge on a swift CFO appointment and continued operational stability.

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

Carvana Co. (NYSE:CVNA) may see slower retail unit growth in the second quarter, according to Jefferies analysts, though the firm maintained its Buy rating and $95 price target, citing confidence in the company's longer-term outlook.

This price target implies upside from current levels of about $65.

Jefferies' analysis, based on web-scraped data, suggests Carvana's retail unit growth eased to below 30% in recent weeks and to the low-20% range in the most recent week of June. That marks a deceleration from growth rates of 38% in April and 33% in May, as well as 40% in the first quarter.

The firm now estimates second-quarter retail unit growth of 33% year over year, assuming sales trends during the second half of June follow seasonal patterns seen last year.

That forecast is about 2% below Wall Street consensus expectations for 37% growth and would represent Carvana's first retail unit miss in 10 quarters.

Jefferies lowered its second-quarter unit and EBITDA estimates by roughly 1% to reflect the recent slowdown. However, analysts left their forecasts for the second half of 2026 and beyond unchanged, saying the softer growth could be linked to temporary constraints associated with the company's expansion efforts and infrastructure build-out.

The firm noted that inventory levels continued to increase at a mid- to high-20% annual pace throughout the quarter, although growth has moderated compared with late 2025 and early 2026. Jefferies attributed the slower inventory expansion to tougher comparisons, efforts to improve performance at certain facilities, and uneven timing of ADESA site conversions.

At the same time, pricing trends remained supportive. Jefferies wrote that Carvana's average selling prices increased by a mid-single-digit to high-single-digit percentage year over year in each week of the second quarter, even as broader used-car prices declined in April and May. The analysts also noted that lower financing rates have helped preserve affordability for customers despite higher vehicle prices.

Robinhood Markets (HOOD 3.90%) operates a popular investing platform where its clients buy and sell stocks, futures, options, cryptocurrency, and even contracts in the prediction markets. Its stock hit a 52-week low of $63 in March, capping off a brutal 57% decline from last year's record high of $154.

The sell-off was sparked by weakness in Robinhood's options and crypto trading businesses, which account for most of its transaction-based revenue. But the company's monthly brokerage metrics showed a recovery in those areas in May, so its stock has surged by around 65% from its March low.

While that sounds encouraging, I don't think the recovery will last. In fact, here's why I'm predicting another sharp move lower for the stock.

Image source: The Motley Fool.

Robinhood's transaction-based revenue is on shaky foundations The majority of Robinhood's revenue comes from the transaction fees it earns whenever a client buys or sells stocks, options, or cryptocurrencies. It generated $623 million in total transaction-based revenue during the first quarter of 2026 (ended March 31), which was a 20% decline from the fourth quarter of 2025 -- just three months earlier.

Options transaction revenue was the largest of four components, and it shrank by 17% to $260 million. Options contracts are financial derivatives that many of Robinhood's clients use to make risky directional bets on stocks, exchange-traded funds (ETFs), and other assets. The stock market was very unpredictable during the first quarter because of the conflict between the U.S. and Iran, which likely spooked many options traders.

Today's Change

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Crypto transaction revenue experienced an even sharper sequential decline of 39% during the quarter, and came in at $134 million, the lowest level since 2024. The crypto market is in the throes of a brutal sell-off right now, and while highly speculative tokens like Dogecoin have declined the most, even Bitcoin is down 50% from its all-time high. This is likely keeping many investors sidelined.

Image source: Robinhood Markets.

Robinhood reports quarterly results like every other publicly listed American company, but it also reports monthly brokerage metrics to give shareholders a more frequent update on its clients' trading activity. During May, daily active trading volume in the options segment increased for the second straight month and hit the highest level of 2026 so far. This is a sign that the company's financial results for the second quarter (ending June 30) could bring an upside surprise.

However, history suggests it probably won't be sustainable. Spikes in trading volume in speculative segments like options and crypto tend to be very short-lived, because they are not markets where clients consistently make money. Earlier this year wasn't the first time Robinhood suffered a sharp drop in transaction revenue in the options and crypto segments -- it experienced even steeper declines after the stock market and crypto bull markets of 2021 came to an end.

Robinhood's valuation leaves little room for further upside When the stock set its all-time high last October, its price-to-sales ratio (P/S) was more than 30, which was almost triple its long-term average of 11.8. That valuation simply wasn't sustainable. But even though the stock is well off its highs, its P/S is still at an elevated level of 20.8.

HOOD PS Ratio data by YCharts.

That suggests Robinhood stock would have to decline by 43% just to trade in line with its long-term average P/S of 11.8. But that isn't the worst part: Hypothetically, if the company's overall revenue shrinks during the next few quarters like it did in the first quarter, then its forward P/S might actually be higher than its current ratio, meaning the stock is actually more expensive today than it appears at face value.

Although the company had a record 27.4 million clients at the end of the first quarter, just 13.5 million were actively engaging with the platform each month, which is still 36% below its peak of 21.3 million from the second quarter of 2021. Because many of its clients engage in risky options and crypto trading -- where it's very difficult to generate consistent profits -- some will inevitably drop off over time.

As a result, I think Robinhood's revenue will continue to be incredibly lumpy and unpredictable, as it has been since the company went public in 2021. That isn't a recipe for sustained upside in its stock, especially from its current valuation.

Key Takeaways Z-Flex generated more than $480M in TCV in Q3, rising more than 60% sequentially for Zscaler.Zscaler saw ARR rise 25% YoY to over $3.5B, while remaining performance obligations grew 30% to $6.5B.Z-Flex helped large clients increase spending by adding new modules, like AI Protect and Zero Trust Branch. Zscaler Inc.’s (ZS - Free Report) Z-Flex program is emerging as an important growth driver for the company. The offering allows customers to make multi-year commitments while giving them the flexibility to activate or switch products without going through a new purchasing process. This approach is helping Zscaler increase customer spending, improve visibility and strengthen long-term relationships.

The momentum behind Z-Flex accelerated during the third quarter of fiscal 2026. Z-Flex generated more than $480 million in the total contract value (TCV) during the quarter, representing growth of more than 60% sequentially. Over the last 12 months, Zscaler delivered more than $1 billion in Z-Flex TCV with an average contract duration of four years.

The program is also encouraging broader platform adoption. Several large customers expanded their use of existing products while adding new modules, including AI Protect and Zero Trust Branch solutions. During the last earnings call, management revealed that one large financial customer increased annual spending by nearly 50%, while another enterprise customer expanded its spending by 60%.

The strong uptake of Z-Flex is contributing to Zscaler’s overall growth. During the third quarter, annual recurring revenues (ARR) rose 25% year over year to more than $3.5 billion. Remaining performance obligations increased roughly 30% to $6.5 billion, providing strong revenue visibility. Total third-quarter revenues rose 25% year over year to $850.4 million.

Management believes Z-Flex shortens sales cycles, increases upselling opportunities and improves customer retention. As enterprises continue consolidating cybersecurity vendors and adopting broader Zero Trust platforms, Z-Flex could remain a meaningful catalyst for Zscaler’s long-term growth and revenue expansion. The Zacks Consensus Estimate for Zscaler’s fiscal 2026 revenues is pegged at $3.33 billion, indicating 24.6% year-over-year growth.

How Do ZS’ Rivals Compare in Flexible Customer Contracts?Two major cybersecurity companies competing with Zscaler in long-term customer engagements are Palo Alto Networks, Inc. (PANW - Free Report) and CrowdStrike Holdings, Inc. (CRWD - Free Report) .

Palo Alto Networks has successfully pushed its platformization strategy, encouraging customers to consolidate multiple security products under one vendor. In the third quarter of fiscal 2026, the company’s next-generation security ARR jumped 60% year over year to $8.1 billion, reflecting strong customer commitment to multi-product contracts.

Palo Alto Networks’ bundled offerings across network security, cloud security and security operations help improve customer retention and expand spending over time. This strategy shares similarities with Zscaler’s Z-Flex program, which promotes broader platform adoption through multi-year agreements.

CrowdStrike has also benefited from higher customer consolidation trends. The company’s ARR rose 24% year over year to $5.5 billion in the first quarter of fiscal 2027. More customers continue adopting multiple Falcon modules, helping expand contract values and increase retention rates. CrowdStrike’s subscription-based model provides recurring revenue visibility similar to Zscaler’s long-term commitments.

While both competitors, Palo Alto Networks and CrowdStrike, focus on platform expansion, Zscaler’s Z-Flex program offers customers additional flexibility to activate or swap products during contract periods, which strengthens its upselling opportunities and long-term revenue growth.

Zscaler’s Price Performance, Valuation & EstimatesZS shares have plunged 44.8% year to date against the Zacks Security industry’s rise of 43.2%.

Zscaler YTD Price Return Performance
Image Source: Zacks Investment Research

From a valuation standpoint, ZS trades at a forward price-to-sales ratio of 5.22, significantly below the industry’s average of 15.65.

Zscaler Forward 12-Month P/S Ratio
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Zscaler’s fiscal 2026 and 2027 earnings implies year-over-year increases of 25.9% and 10.9%, respectively. Estimates for fiscal 2026 and 2027 have been revised upward over the past 30 days.

Image Source: Zacks Investment Research

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