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A car passes Facebook's new Meta logo on a sign at the company headquarters on Oct. 28, 2021, in Menlo Park, Calif. Credit: AP Photo/Tony Avelar, File The European Union accused Meta on Friday of breaching its social media law by designing Facebook and Instagram to get users hooked, and demanded it disable "key addictive features" like infinite scrolling.

The EU's executive arm issued a fresh set of charges against Meta Platforms as part of its investigation under the 27-nation bloc's strict digital rule book known as the Digital Services Act. The sweeping set of regulations from Brussels requires tech platforms to protect internet users under threat of hefty fines.

The European Commission said Meta failed to properly assess the risks its design features pose to the physical and mental health of users, including minors. And while the company has tools and controls to help manage Facebook and Instagram use, it said they were easily overridden, dismissed, or technically challenging to use.

Meta "needs to implement design changes" to Instagram and Facebook, such as disabling "key addictive features" like autoplay of videos and infinite scroll so they're not turned on by default, the commission said in its preliminary findings.

Meta now has the chance to respond and defend itself before the commission issues its final decision, which could result in a fine worth up to 6% of the company's global annual revenue.

Meta said Friday that the preliminary findings do not recognize the steps that the company has already taken to protect teens.

"Since this investigation began, we rolled out Teen Accounts that automatically protect teens and put parents in control - allowing them to block access to Instagram at night and cap daily screen time at just 15 minutes," Meta said in a prepared statement. "We share the European Commission's commitment to providing teens with safe, positive online experiences and will continue to engage constructively with them."

Europe is committed to enforcing its legislation that holds platforms accountable for addictive design features, said Henna Virkkunen, an executive vice-president at the commission overseeing tech.

"Protecting the physical and mental health of Europeans must be a priority for social media platforms," Virkkunen said in a written statement.

Facebook and Instagram design features, including personalized recommendations and push notifications, serve up an endless stream of content, putting users' brains on "autopilot" and fueling compulsive use, the commission said.

Meanwhile, screen time controls that parents can impose on their teens' devices can be "easily dismissed" and don't result in a meaningful reduction of use, the commission said. And the controls are undermined by the technical expertise, time and effort that parents need to understand and use them, it said.

The commission's proposed design changes also included finding better ways to encourage screen time breaks, and changing the content recommendation system so that it's less "engagement-oriented."

The preliminary findings are the latest charges since Brussels opened its investigation in 2024 over concerns that the social media giant wasn't doing enough to protect children online.

The EU said earlier this year that Meta had failed to prevent children under 13, the company's minimum age to use Facebook and Instagram, from signing up. It also said Meta was not doing enough to identify and remove underage users after they had opened accounts.

Who's behind this story?

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Key Takeaways Meta led S&P 500 gainers on Friday as Wall Street welcomed its push to monetize the hundreds of billions its spending on AI infrastructure.Shares are up nearly 20% so far this quarter, rebounding after posting one of the worst first-half performances among mega-cap tech stocks. Meta was the best-performing stock in the S&P 500 on Friday as investors continued to cheer the social media giant’s push to monetize its AI investments. 

In an internal memo, Meta (META) laid out plans to double its cloud computing capacity to 14 gigawatts next year and begin producing its own AI chips with designer Broadcom (AVGO) in September, Reuters reported on Thursday.1 On Thursday, Meta also released its latest AI model, Muse Spark 1.1, which developers can pay to use through a new API platform. 

The shares jumped nearly 5% yesterday, and the stock was up another 5% in recent trading. Friday’s gains pared Meta stock’s year-to-date losses to about 4%, since the stock came into this week down nearly 12% since the start of the year. 

Why This Is Important Meta’s taken a different approach to AI investments than its hyperscaler peers, investing huge sums to train AI models primarily for its own use. Recent developments suggest the company is pivoting to a third-party service provider model, a strategy that investors are cheering.

Wall Street started to ask questions about Meta’s AI infrastructure spending this year, with some investors expressing concern the social media giant is spending hundreds of billions on data centers for its own use, unlike Alphabet (GOOG) and Amazon (AMZN), which sell computing capacity to cloud customers. 

Meta has been one of Big Tech’s laggards this year. It was the only Magnificent Seven stock to fall in both the first and second quarters. And its 15% first-half decline was the second-worst of the Mag Seven, trailing only Microsoft’s (MSFT) 23% slump. 

Sentiment has improved in the second half. Shares popped 9% on July 1 following reports the company is considering renting out unused computing capacity to third parties, similar to SpaceX’s (SPCX) $1.25 billion-per-month agreement with Anthropic. Shares are up nearly 20% since that report. 

Bank of America analyst Justin Post, in a note earlier this week, argued Wall Street is undervaluing Meta’s AI infrastructure. Post estimates investors are valuing Meta’s computing capacity at just $4 billion per gigawatt, compared with Amazon’s $59 billion and Alphabet’s $110 billion. Post believes it’s worth $12 billion per GW, with the potential for “significant upside considering specialized AI capacity that Meta is building.” According to Post, SpaceX’s recent deals with Anthropic and Google valued its specialized capacity at about $50 billion per GW.2

Investor enthusiasm for Meta’s AI push has offset regulatory and legal headwinds facing its core social media business. The EU Commission on Friday said in a preliminary report that Meta violated its Digital Services Act with “addictive” features like infinite scroll and autoplay. The commission told Meta to change the violating design features, or risk facing a fine of up to 6% of its global revenue.3 

Meta faces mounting scrutiny of its social media platforms and their impact on youth mental health and safety. The company lost two trials centered on child safety earlier this year, potentially setting a precedent for a slew of similar cases being litigated. 

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SummaryMeta Platforms, Inc. is up 15%+ since my previous post, and I'm reiterating my 'buy' rating as it pushes ahead to build the strongest foundation of a real AI revenue stack.Recent launches—Meta Cloud, Muse Image, and Muse Spark 1.1—unlock new monetization pathways beyond core advertising that are currently not priced in.META continued to trade at an attractive valuation at just 19.55x FY26 EPS, compressing to 16x FY28, with 23% upside to consensus price targets.Short-term margin pressure from AI capex and Meta Cloud could weigh down on META stock, but I see that as a temporary bump to further upside ahead.Looking for a portfolio of ideas like this one? Members of The REIT Forum get exclusive access to our subscriber-only portfolios. Learn More » kentoh/iStock via Getty Images

Introduction & Investment Thesis When I last wrote about Meta Platforms, Inc. (META), I said that investing in the company at 17x forward P/E doesn't get any easier.

In the post, I explained how investors haven't

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Alphabet (NASDAQ:GOOG | GOOG Price Prediction) has quietly become one of the most compelling risk/reward setups in mega-cap tech. Shares trade at $363.62 after a 105.37% one-year rally, yet the stock still carries a trailing P/E of just 28 against 37.9% profit margins.

Our 24/7 Wall St. price target for Alphabet is $441.58, pointing to 21.44% upside over the next 12 months. The recommendation is buy, with high confidence at 90%.

24/7 Wall St. Price Target Summary Metric Value Current Price $363.62 24/7 Wall St. Price Target $441.58 Upside 21.44% Recommendation BUY Confidence Level 90% From $173 to $363: How Alphabet Got Here Alphabet has been one of the year’s standout large-cap performers, up 16.03% year-to-date and more than doubling from a 52-week low of $173.38. Shares sit roughly 6% below the 52-week high of $404.23 after a 0.52% pullback over the past month.

The rally is anchored in fundamentals. Q1 FY2026, filed April 29, 2026, delivered EPS of $5.11 against a $2.63 consensus, a 94.10% beat. Revenue of $109.90 billion grew 21.8% year over year, and Google Cloud surged 63% to $20.03 billion with backlog nearly doubling to over $460 billion. That is the fourth straight EPS beat.

Why Bulls See a Breakout Ahead The bull thesis rests on AI monetization at scale. Gemini is processing 16 billion tokens per minute, up 60% QoQ, while Gemini Enterprise paid MAUs grew 40% quarter-on-quarter. Alphabet now counts 350 million paid subscriptions, and Waymo crossed 500,000 autonomous rides per week.

CEO Sundar Pichai told investors “2026 is off to a terrific start. Our AI investments and full stack approach are lighting up every part of the business.”

Wall Street agrees. The analyst consensus target sits at $426.62, with 44 Buy and 14 Strong Buy ratings versus zero sells. Our bull case scenario sees $459.76 within 12 months, a 26.44% return, if cloud backlog conversion accelerates.

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What Could Go Wrong The bear case starts with capital intensity. Alphabet guided $175-$185 billion in 2026 CapEx, and Q1 free cash flow fell 46.63% YoY to $10.12 billion. If AI infrastructure ROI disappoints, margins compress. Prediction markets are notably cautious, assigning only 15.5% probability that Alphabet is the largest company by year-end, and insiders have logged 179 net-selling transactions.

That FCF compression reflects deliberate reinvestment, with operating margin expanding to 36.1% and operating cash flow rose 26.67%. Regulatory risk, including the $3.5 billion EU competition fine, adds tail risk. Our bear scenario points to $355.92, essentially flat.

Alphabet Price Prediction 2026-2030 Our 24/7 Wall St. price target of $441.58 reflects a buy at 90% confidence. The tipping factor is cloud backlog visibility: $460 billion in signed commitments converts to years of high-margin revenue.

The setup looks constructive if Q2 shows continued Gemini enterprise traction and cloud growth holding above 50%. The thesis weakens if CapEx guidance rises further without a corresponding backlog uplift.

Year 24/7 Wall St. Price Target 2026 $387.91 2027 $441.58 2028 $505 2029 $578 2030 $654.25 These projections assume Alphabet continues executing on cloud, AI, and Waymo commercialization. Significant upside could come from Gemini monetization breakthroughs, while downside would follow a broad unwind of AI capex enthusiasm.

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Our Amazon (NASDAQ:AMZN | AMZN Price Prediction) call is straightforward: the stock has room to run into year-end. AMZN currently trades at $245.98, sitting 12% below its 52-week high despite AWS growth reaccelerating to its fastest pace in 15 quarters.

The 24/7 Wall St. price target for Amazon is $324.34, implying 31.86% upside over the next 12 months. Our recommendation is buy at a 90% confidence level.

24/7 Wall St. Price Target Summary Metric Value Current Price $245.98 24/7 Wall St. Price Target $324.34 Upside 31.86% Recommendation BUY Confidence Level 90% A Quiet Consolidation After a Blowout Earnings Report AMZN is up 6.57% year to date and 3.21% over the past week, but essentially flat over the past month. Shares initially rallied 4.4% after Q1 2026 earnings on April 29, then gave those gains back as retail investors on r/stocks worried about hyperscaler “overinvestment in data centres” triggering a multiyear downturn.

The Q1 report was excellent. Revenue hit $181.52 billion, up 16.61% year over year, with EPS of $2.78 versus the $1.653 consensus. AWS grew 28% to a $150 billion annualized run rate, and the chips business (Trainium, Graviton, Nitro) cleared a $20 billion revenue run rate with triple-digit growth.

Why Bulls See a Breakout Ahead The bull case rests on AWS AI monetization scaling faster than the capex line. AWS backlog reached $364 billion in Q1, and that excludes the recent $100 billion+ Anthropic deal. Total Trainium revenue commitments now exceed $225 billion, with OpenAI committing to 2 GW of capacity starting 2027. CEO Andy Jassy called this “truly a once-in-a-lifetime opportunity.”

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Layer on Amazon Leo (satellite deals with Apple, Delta, Vodafone), Zoox robotaxis, and Rufus AI shopping driving 115% MAU growth, and the sum-of-parts stretches further. Under our bull scenario, AMZN reaches $372.05 over 12 months.

The Risks Worth Watching Free cash flow TTM collapsed 95% to $1.2 billion as Q1 capex hit $44.2 billion, and 2026 capex is tracking near $200 billion. Long-term debt climbed to $119.1 billion from $65.6 billion. Bulls would counter that these are 30-year data center assets funded ahead of contracted revenue, with Trainium2 nearly sold out. Still, our bear scenario sees AMZN at $279.96 if AI ROIC disappoints.

Amazon Price Prediction 2026-2030 The 24/7 Wall St. price target of $324.34 reflects 90% confidence in a buy rating. The tipping factor is AWS accelerating on a $150B base while chip commitments compound. The setup favors investors comfortable with capex-driven FCF volatility through 2027, and looks less attractive for those needing dividend income or expecting a broad AI capex reset.

Year 24/7 Wall St. Price Target 2026 $324.34 2027 $378 2028 $435 2029 $487 2030 $541.42 These projections assume Amazon executes on its AI infrastructure buildout and monetizes the AWS backlog on schedule. Significant upside could come from Amazon Leo scaling faster than modeled, while a hard AI capex retrenchment is the primary downside risk.

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Microsoft (NASDAQ:MSFT | MSFT Price Prediction) has spent the first half of 2026 in the penalty box. Shares are down 19.24% year to date, weighed down by AI capex anxiety, Copilot execution questions, and a securities class action tied to the January earnings reaction. But fundamentals tell a different story, and our model sees a meaningful gap between price and value.

Our 24/7 Wall St. price target for Microsoft is $500.25, implying 28.65% upside from $388.84. The recommendation is buy with 90% confidence.

24/7 Wall St. Price Target Summary Metric Value Current Price $388.84 24/7 Wall St. Price Target $500.25 Upside 28.65% Recommendation BUY Confidence Level 90% How MSFT Got Cheap Again Microsoft entered 2026 near $551.05 and has since traded down to a 52-week low of $349.20. The one-year decline sits at 21.25%, though the stock bounced 4.24% in the past week.

Two factors weigh on the stock. First, a securities fraud class action filed after the January 28 earnings reaction alleges Microsoft misled investors on Copilot adoption and Azure growth. Second, capital intensity has exploded: CapEx of $30.88 billion in Q3 FY26 was up 84.39% year over year.

Operating results contradict the price action. Q3 FY26 delivered EPS of $4.27 versus $4.09 expected on revenue of $82.89 billion (+18.3% YoY). Azure grew 40%, and CEO Satya Nadella noted “Our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year.”

Commercial remaining performance obligations reached $627 billion, up 99%, a demand signal that dwarfs current market cap concerns.

The Case for $600+ Bulls have a straightforward path. Fifty-four of 57 analysts rate Microsoft Buy or Strong Buy, with a consensus target implying 46.2% upside.

Seeking Alpha’s Gytis Zizys recently upgraded to Buy, arguing “The current 35% discount below fair value presents an attractive long-term entry point.” Our bull case scenario models MSFT at $600.58 by July 2027, a 54.45% total return.

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Catalysts are tangible. Azure’s 40% growth is accelerating, the OpenAI restructuring extended Microsoft’s IP rights through 2032 and secured a $250 billion incremental Azure commitment, and Microsoft is now replacing OpenAI and Anthropic models with its own MAI models in Excel and Outlook, materially improving unit economics on Copilot.

What Could Go Wrong The bear case rests on capex indigestion and Copilot adoption falling short of the AI narrative. Our bear scenario sees MSFT at just $444.46 in twelve months, a 14.3% return that would underperform expectations.

Alphabet’s Google Cloud grew 63% with an AI-powered revenue surge and a $462 billion backlog, applying competitive pressure. The 33 recent insider transactions skewing net-sell add caution.

The 84% CapEx surge that spooked investors funds infrastructure backing the same $627 billion RPO bulls celebrate. Free cash flow generation of $46.68 billion in operating cash flow for a single quarter provides ample cushion.

Microsoft Price Prediction 2026-2030 The 24/7 Wall St. price target of $500.25 with buy conviction at 90% confidence reflects a company trading at 20x forward earnings despite 23.4% earnings growth and 46% operating margins.

The key factor is the RPO backlog: $627 billion in contracted future revenue represents binding customer commitments. The bullish thesis holds if Azure sustains the 35%+ growth line through fiscal 2027; conviction weakens if Copilot enterprise seat count materially misses in the next two earnings reports.

Year 24/7 Wall St. Price Target 2026 (year-end) $447 2027 $500 2028 $601 2029 $675 2030 $730 These projections assume Microsoft continues executing on Azure and enterprise AI adoption at current trajectories. Significant upside could result from Copilot monetization outperforming, while a broader AI capex reset or adverse ruling in the pending Copilot securities litigation could compress this path.

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Contact [email protected] for any questions or corrections.

LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay Wolke & Rotter LLP, a leading national shareholder rights law firm, continues its investigation on behalf of Alibaba Group Holding Ltd. (“Alibaba” or the “Company”) (NYSE: BABA) investors concerning the Company’s possible violations of the federal securities laws.

IF YOU ARE AN INVESTOR WHO LOST MONEY ON ALIBABA GROUP HOLDING LTD. (BABA), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS.

What Happened?

On November 14, 2024, Financial Times published an article entitled “White House memo claims Alibaba is helping Chinese military target US.” According to the article, the memo provided declassified intelligence about how Alibaba provides “the People’s Liberation Army with capabilities that the White House believes threaten US security.” Moreover, “Alibaba also provides the Chinese government and PLA with access to customer data that includes IP addresses, WiFi information and payment records, as well as different AI-related service.”

On this news, Alibaba’s shares fell $6.04, or 3.78%, to close at $153.80 per share on November 14, 2025.

Then, on February 13, 2026, the Pentagon added Alibaba to a list of companies aiding the Chinese military before withdrawing the list only minutes later without explanation.

On this news, Alibaba’s stock price fell $3.00, or 1.9%, to close at $155.73 per share on February 13, 2026.

Then, on March 19, 2026, Alibaba reported weaker-than-expected financial results, with revenue missing consensus estimates “primarily due to weaker transaction activities and phase-out of the impact of software service fee implementation.”

On this news, Alibaba’s stock price fell $9.53, or 7.1%, to close at $124.90 per share on March 19, 2026..

Then, on June 11, 2026, Bloomberg News reported that the Beijing branch of State Administration for Market Regulation summoned Alibaba representatives "over what officials said was false advertising during the annual '618' midyear online shopping festival."

On this news, Alibaba’s stock price fell $1.64, or 1.4%, to close at $112.69 per share on June 11, 2026.

Then, on July 1, 2026, the US Department of Justice published a press release stating that Alibaba had “entered a non-prosecution agreement to pay $600 million to resolve the Justice Department’s allegations that they violated the Federal Food, Drug, and Cosmetic Act (FDCA) by failing to prevent merchants from selling and importing illegal pharmaceuticals, controlled substances, listed chemicals, and pill presses into the United States” through its e-commerce platforms.

On this news, Alibaba’s stock price fell $1.85 or 1.9%, to close at $96.14 per share on July 2, 2026, thereby injuring investors further.

Contact Us To Participate or Learn More:

If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.

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Glancy Prongay Wolke & Rotter LLP,
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Persons with non-public information regarding Alibaba should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email [email protected].

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With four offices across the country, GPWR’s nearly 40 attorneys have won groundbreaking rulings and recovered billions of dollars for investors and consumers in securities, antitrust, consumer, and employment class actions. GPWR’s lawyers have handled cases covering a wide spectrum of corporate misconduct and relating to nearly all industries and sectors. GPWR’s past successes have been widely covered by leading news and industry publications such as The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron’s, Investor’s Business Daily, Forbes, and Money.

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, /PRNewswire/ -- AT&T and Ericsson demonstrated drone detection using advanced network sensing over a 5G network, showing how capabilities often associated with future 6G systems can begin coming to life today. The demo was conducted in authorized airspace outside AT&T Stadium in Arlington, Texas, during one of the largest global sporting events in the world. Using Ericsson technology and AT&T network expertise, it detected and located multiple drones, then tracked their movement, illustrating how wireless infrastructure could help protect major venues, critical infrastructure and other key locations.

The future takes flight: AT&T and Ericsson demonstrate drone detection outside of AT&T Stadium This showed how advanced network features can be enabled using 5G capabilities as the industry momentum towards 6G standardization and subsequent deployment accelerates. Critically, the same underlying capabilities could support new levels of low altitude threat detection and tracking around major venues, public spaces and other complex environments.

Using existing cellular towers, Ericsson deployed its Massive MIMO radios across multiple sites, creating a multi-static sensing configuration. The demonstration combined sensing-enabled radio transmissions with advanced signal processing and AI-enabled sensing algorithms to detect, locate, and track the drones in real time, The network utilized the radio signals typically used for communications to enable real-time environmental sensing, while delivering a total cost of ownership advantage for nation-wide coverage.

In the demonstration, multiple drones flying at altitudes between 300 and 400 feet within the coverage area were successfully detected, localized, and continuously tracked by the sensing technology. By combining observations from multiple synchronized sensing nodes, the technology provided enhanced detection reliability, improved positioning accuracy, and robust target tracking performance. The sensing technology generated real-time target metrics, including the drone's location, velocity, and elevation, enabling comprehensive tracking and monitoring throughout the flight path.

The demonstration highlighted how existing network infrastructure can be transformed into a distributed sensing platform, enabling advanced applications such as drone detection without requiring additional standalone sensing technology. But it shows more than a single technical milestone. It reflects a broader view shared by AT&T and Ericsson: that some of the capabilities people may think of as "6G" can begin taking shape now through software, advanced radios and continued growth of 5G.

Together, AT&T and Ericsson will continue bringing their expertise to the evolution of Integrated Sensing and Communication (ISAC) through future demonstrations and learnings, alongside others helping shape the path toward major event environments such as the next major global sporting event in Los Angeles in 2028.

"As networks evolve, the opportunity is not just to prepare for 6G someday, but to begin introducing important building blocks now," said Dyon Agnew, SVP and Head of Customer Unit AT&T, Ericsson Americas. "This demonstration with AT&T shows a product roadmap in action: using advanced 5G capabilities today to explore how sensing and connectivity can work together, then evolving those capabilities over time as the path to 6G becomes clearer."

"Integrated sensing is an important part of the road to 6G, and this work helps show how we can start bringing that future to life right now," said Yigal Elbaz, SVP and Network CTO, AT&T. "By working with Ericsson, we are exploring how advanced wireless networks can add sensing capabilities to connectivity in ways that could support safer operations, smarter venues and stronger customer experiences, while creating a path to evolve these capabilities responsibly over time."

What this roadmap will enable over time:

Help event and facility teams improve planning and staffing by providing broader visibility into how vehicles move through large environments. Enhance coordination around temporary event infrastructure and logistics by adding network-based environmental awareness alongside connectivity. Support a wide-area drone awareness system for public-sector stakeholders, improving visibility into low-altitude drone activity as the low-altitude economy develops across cities and regions. Inform the evolution of future 5G and 6G capabilities as sensing and communications mature together for large venues, enterprises, governments and public-sector environments. What's next: AT&T and Ericsson will continue exploring how sensing capabilities can be introduced pragmatically using existing network foundations, then advanced over time as standards, ecosystems and market needs develop.

The goal is to help shape a practical path where future 6G capabilities are not treated as a distant leap, but as an evolution that can begin delivering value well before full 6G commercialization.

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Optimism says Toss is the fourth regulated financial institution in a year to pick the OP Stack, after Bitpanda, Kraken and Mitsui.

Toss, the South Korean fintech app with roughly 30 million registered users, is testing a Korean won stablecoin on Optimism's OP Stack, Optimism said on X Wednesday. The proof of concept also involves Sunnyside Labs, whose "Privacy Boost" tool is meant to shield transaction data on a public blockchain while preserving compliance access.

Optimism, the company behind the OP Stack framework used to build layer-2 networks, called the tie-up the fourth time in a year a regulated financial institution has adopted the OP Stack in a new market, following Bitpanda's Vision Chain in Europe, Kraken's Ink in the US and Mitsui's Zipangcoin in Japan.

Kyle Jenke, chief business officer at OP Labs, said the pilot is "about demonstrating that the OP Stack can meet the compliance, privacy, and performance standards that regulated financial institutions require." Toss chief business officer Q-Ha Steve Kim said the company aims "to build a highly trusted, compliant digital financial infrastructure tailored to the Korean market," using the same post.

Three-Month TestThe arrangement runs as a three-month proof of concept, according to a post from crypto researcher Jay Chan, covering whether a financial institution can manage settlement, meet KYC and anti-money-laundering requirements, and protect transaction privacy on a public chain at the same time. Toss operates over 500,000 online and offline payment networks, per a summary of Kim's comments on the deal.

Optimism's post frames the collaboration as a test rather than a commitment to launch a stablecoin.

The OP Stack already underpins Sony's Soneium, Uniswap's Unichain and OKX's X Layer, among others, giving Toss an established multi-chain ecosystem to plug into rather than building isolated infrastructure. Whether the pilot converts into a live KRW stablecoin will depend on regulatory sign-off in South Korea, which has not yet finalized its stablecoin licensing framework.

In Brief

Posted:

9:29 AM PDT · July 10, 2026

Image Credits:Rafael Henrique/SOPA Images/LightRocket / Getty Images Disney+ is considering making some of its streaming library available to watch for free, according to a report from Business Insider.

Disney’s chief product and technology officer Adam Smith discussed the possibility of offering free-tier content during a town hall on Thursday, the report says. It’s unknown which shows or movies would be included or when the streaming platform would consider launching the offering.

The rollout of free content would allow Disney+ to better compete with free services like YouTube and Tubi, which are capturing a growing share of consumers’ viewing time.

As streaming giants continue to raise prices, consumers have been turning to ad-supported services. According to data from Neilson, free streaming services represented 18.7% of U.S. television watch time in April 2026, rising from 16.8% in April 2025 and 12.7% in April 2024.

By offering select free content to consumers, Disney+ could better differentiate itself from its streaming peers like Netflix and Amazon Prime, especially as Apple TV+ and Paramount+ already allow non-subscribers to access a few free episodes.

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Delta Airlines saidelevated airfares are likely to last despite a recent drop in oil prices, reporting strong appetite for travel and record-high revenue in its quarterly results Friday.

Though the company had its highest quarterly fuel expense in its history, demand has been high enough to pass along 60% of its extra fuel costs to consumers, Delta’s CEO, Ed Bastian, told CNBC, with plans to eventually pass along all elevated costs.

“The demand for air travel is really strong, and as a result of that, we posted a $1.4bn profit,” Bastian told CNBC.

Airlines across the board have had to pass on elevated fuel costs to customers or cut routes this year as the war in the Middle East drove oil prices up. While some Americans have been forced to cut or adjust their travel plans amid the higher fares, others appear unwilling to sacrifice their travel plans. AAA estimated that a record-high number of Americans drove or flew for their Independence Day holiday plans, despite high gas prices.

Bastian said that he estimated that 60% of the airline industry’s profits this quarter would be coming from Delta, which holds 20% of the market share. Delta is the first airline to report its second quarter results; United Airlines and American Airlines will announce their earnings later this month.

Bastian noted that Delta consumers are at the “top end” of the K-shaped economy, calling them “financially very healthy” with a “tremendous amount of wealth accumulation”. In its earnings report, Delta reported that its premium revenue grew 17% year-over-year, whereas its main cabin sales increased by just 8% over the same time frame. Earlier this week, the airline expanded its premium offerings, launching a “basic business” option that offers business class without expedited check-in or lounge access.

“When you ask our consumers what is their main purpose and use of discretionary funds, they’ll say we want to participate in the experience economy, with air travel being the number one,” he said. “We want to go places. We want to see things.”

Despite airfares that are up between 12 to 15% from last year, Bastian said airfares “continue to be a tremendous bargain”, amid overall inflationary pressures. He added that Delta flyers were still willing to spend on travel, citing the “post-Covid effect”.

Despite the sharp in drop in global oil prices last month after the US announced a peace deal with Iran, oil and gas prices are creeping up again as the future of the ceasefire remains uncertain. The current national average for a gallon of gas is $3.88, which is cheaper than last month’s levels but still $0.71 higher than last year.

Key Takeaways DAL posted Q2 adjusted EPS of $1.56 as revenues rose to $17.67 billion. Delta's premium and diversified revenues climbed 18% and made up 61% of adjusted operating revenues. DAL expects Q3 EPS of $2.00-$2.50 and reaffirmed full-year guidance of $6.50-$7.50. Delta Air Lines (DAL - Free Report) reported second-quarter 2026 earnings (excluding 88 cents from non-recurring items) of $1.56 per share, beating the Zacks Consensus Estimate of $1.51. Earnings declined in double digits (% wise) from a year ago as sharply higher fuel costs pressured profitability.

Revenues rose on a year-over-year basis to $17.67 billion but missed the consensus estimate of $17.76 billion. Broad demand strength lifted adjusted total revenue per available seat mile, or TRASM, 12.4%, while premium and diversified revenue streams continued to expand.

DAL Benefits From Broad-Based Revenue StrengthPassenger revenues increased 13% year over year to $15.61 billion. Premium-product ticket revenues climbed 17% to $6.92 billion, while main-cabin ticket revenues rose 8% to $6.85 billion. Loyalty travel awards and travel-related services revenues grew 14% and 11%, respectively.

Premium products and diversified revenue streams generated $10.82 billion, up 18%, and accounted for 61% of adjusted operating revenues compared with 59% a year earlier. Management cited yield strength, continued premium-seat investments and stronger customer engagement as major contributors.

Delta Posts Gains Across Key MarketsDomestic revenues advanced 15% year over year to $10.67 billion, supported by 12%-unit revenue growth and a 13% increase in yield. Atlantic revenues rose 8% to $3.11 billion, with unit revenues up 7% and capacity increasing 1%.

Pacific revenues increased 15% to $832 million as capacity expanded 8%. Latin American revenues grew 4% to $990 million despite a 7% capacity reduction, reflecting 12%-unit revenue growth and a 13% improvement in yield. Corporate sales increased at a double-digit rate across all sectors, led by Aerospace & Defense, Banking and Automotive.

Revenue passenger miles (a measure of air traffic) inched up 1% to 66.77 billion. Capacity (measured in available seat miles) expanded 1% to 78.7 billion. Consolidated passenger load factor (% of seats filled by passengers) decreased to 84.8% from 85.5% a year ago.

DAL Sees Momentum in Diverse Revenue StreamsCargo revenues surged 39% year over year to $294 million, driven primarily by volume growth. Maintenance, repair and overhaul revenues increased 32% to $315 million, mainly reflecting strength in legacy engine platforms.

Loyalty and related revenues rose 19% to $1.34 billion. American Express remuneration increased 16% to $2.4 billion, aided by accelerating card acquisitions and the seventh consecutive quarter of double-digit cardholder spending growth. Travel products and non-air partnership revenues advanced nearly 20%.

Delta’s Fuel Costs Weigh on MarginsAdjusted operating expenses increased 20% year over year to $16.1 billion. Adjusted fuel expense jumped 77% to $4.41 billion as the adjusted average fuel price climbed 75% to $3.93 per gallon. Fuel consumption inched up 1% to 1.12 billion gallons.

Adjusted operating income declined 24% to $1.56 billion, while the adjusted operating margin contracted 450 basis points to 8.8%. Non-fuel costs rose 8% to $11.09 billion, and non-fuel unit costs increased 6.8% to 14.09 cents.

DAL Generates Cash and Reduces DebtAdjusted operating cash flow totaled $1.65 billion in the June quarter, down 10% year over year. Gross capital expenditures increased 23% to $1.44 billion, leaving free cash flow of $209 million compared with $733 million in the prior-year period.

Adjusted net debt was $13.59 billion at quarter-end, down $709 million from the end of 2025 and $2.73 billion year over year. Delta ended the quarter with $4.67 billion in cash and cash equivalents and $7.7 billion in liquidity, including $3.1 billion of undrawn revolving credit capacity.

Delta Issues Upbeat Q3 OutlookFor the third quarter of 2026, Delta expects adjusted earnings of $2.00-$2.50 per share. The Zacks Consensus Estimate is currently pegged at $1.93 per share. The company projects an adjusted operating margin of 11-13% and mid-teens year-over-year revenue growth on modest capacity expansion. Fuel cost per gallon is expected to be $3.15.

Management expects unit revenue growth to improve sequentially and non-fuel unit cost performance to improve modestly from the June quarter.

Full-Year 2026 Outlook Reaffirmed by DALDelta expects adjusted earnings guidance of $6.50-$7.50 per share. The Zacks Consensus Estimate is currently pegged at $5.78 per share. Delta anticipates free cash flow in the $3-$4 billion range. The company also expects gross leverage of approximately two times by year-end.

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

Upcoming Earnings Release of Other Transportation CompaniesJ.B. Hunt Transport Services (JBHT - Free Report) is scheduled to report second-quarter 2026 earnings on July 15. The Zacks Consensus Estimate for second-quarter 2026 earnings has been revised 0.6% upward over the past 60 days. JBHT’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters and missed in the remaining one, the average surprise being 6.3%. 

Union Pacific (UNP - Free Report) is scheduled to report second-quarter 2026 earnings on July 23.

The Zacks Consensus Estimate for second-quarter 2026 earnings has been revised 0.3% upward over the past 60 days. UNP’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters (missing the mark on the other occasion). The average beat is 2.3%. 

Americans are still spending on travel, even as surging fuel prices have driven ticket prices higher, Delta Air Lines executives said Friday.

Volkswagen announced a restructuring plan that could cost up to 100,000 jobs.

Key Takeaways American Express launched new AI tools to support secure AI-powered payments and developer integrations.AXP uses its closed-loop network to improve approvals, verify intent and strengthen fraud protection.AXP reported 11% revenue growth, reaffirmed 2026 EPS guidance despite higher technology investments. Artificial intelligence is becoming a key part of American Express Company’s (AXP - Free Report) long-term strategy. During its latest earnings call, the company highlighted several AI initiatives aimed at preparing its payments business for the next phase of digital commerce. AmEx also plans to increase technology investments, signaling that AI will remain a major area of focus.

AmEx recently launched the Amex Agentic Commerce Experiences Developer Kit, enabling developers to integrate its cards into AI-powered transactions. It also introduced Amex Agent Purchase Protection, an industry-first feature that protects purchases made by registered AI agents. In addition, the company is building proprietary AI features on its own platforms while partnering with leading AI companies to make its premium membership benefits discoverable and actionable across their platforms.

The company is using its closed-loop payments platform to support these initiatives. Access to end-to-end transaction data helps verify purchase intent, improve payment approvals and strengthen fraud protection and security for both card members and merchants. These capabilities could become increasingly important as AI handles a larger share of digital transactions.

AmEx delivered strong first-quarter results, supporting its investment in future growth. Revenues increased 11% year over year to $18.9 billion, and earnings per share (EPS) rose 18% to $4.28. Despite raising technology investments, the company reaffirmed its full-year 2026 EPS guidance of $17.30-$17.90. As AI continues to reshape digital commerce, these investments could strengthen customer engagement, deepen merchant relationships and support long-term growth.

How Are Competitors Faring?American Express faces intense competition in the payments space from Mastercard Incorporated (MA - Free Report) and Visa Inc. (V - Free Report) , both of which are expanding their AI capabilities to strengthen payment security and support the next phase of digital commerce.

Mastercard recently expanded its Agent Pay platform and introduced Verifiable Intent to support secure AI-driven transactions. These initiatives reflect Mastercard's focus on building trust and security as agentic commerce evolves.

Visa is expanding its AI capabilities to strengthen digital payments and fraud prevention. It recently launched the Visa Threat Intelligence Platform (VTIP) to identify cyber threats before they become payment fraud, reflecting its continued focus on AI-driven payment security.

AXP’s Price Performance, Valuation & EstimatesShares of AXP have risen 8.6% over the past year against the industry’s decline of 26.6%.

Image Source: Zacks Investment Research

From a valuation standpoint, AXP trades at a forward price-to-earnings ratio of 18.28X, up from the industry average of 9.87X. AXP carries a Value Score of C.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for AXP’s 2026 earnings is pegged at $17.67 per share, implying a 14.9% jump from the year-ago period’s level.

Image Source: Zacks Investment Research

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

Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Travelers (TRV - Free Report) , which belongs to the Zacks Insurance - Property and Casualty industry, could be a great candidate to consider.

This insurer has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 21.09%.

For the last reported quarter, Travelers came out with earnings of $7.71 per share versus the Zacks Consensus Estimate of $6.98 per share, representing a surprise of 10.46%. For the previous quarter, the company was expected to post earnings of $8.45 per share and it actually produced earnings of $11.13 per share, delivering a surprise of 31.72%.

Price and EPS Surprise

For Travelers, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.

Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Travelers has an Earnings ESP of +0.02% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on July 17, 2026.

When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.

Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.

Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

RAHWAY, N.J.--(BUSINESS WIRE)--Merck (NYSE: MRK), known as MSD outside of the United States and Canada, today announced the U.S. Food and Drug Administration (FDA) approved KEYTRUDA® (pembrolizumab) and KEYTRUDA QLEX™ (pembrolizumab and berahyaluronidase alfa-pmph), Merck's anti-PD-1 therapies, each in combination with Padcev® (enfortumab vedotin-ejfv), as neoadjuvant treatment and then continued after cystectomy as adjuvant treatment for the treatment of adult patients with muscle-invasive bla.

Artificial intelligence is no longer just a software story — it has become one of the largest infrastructure buildouts in modern business history. Tech giants are pouring hundreds of billions of dollars into new data centers, networking equipment, advanced semiconductors, and power capacity to secure an edge in the next phase of computing. That investment wave is reshaping more than the technology industry; it is transforming the corporate credit market as well. 

Companies that once relied primarily on their enormous cash reserves are increasingly turning to bond investors to finance their AI ambitions. The strategy makes sense if future profits justify today’s spending. If they don’t, the growing pile of debt could become one of the biggest risks facing the AI boom.

AI Is Rewriting the Corporate Bond Market According to Bloomberg, six AI-focused companies — Amazon (NASDAQ:AMZN | AMZN Price Prediction), Alphabet (NASDAQ:GOOG), Meta Platforms (NASDAQ:META), Nvidia (NASDAQ:NVDA), Oracle (NYSE:ORCL), and SpaceX (NASDAQ:SPCX) — have collectively issued $182 billion of investment-grade bonds during 2026. During the same period last year, those companies raised only about $13 billion. That represents an increase of roughly 1,300% in just one year.

The impact extends far beyond Silicon Valley. Those six companies now account for nearly 15% of all U.S. corporate bond issuance so far this year while generating more than half of the overall growth in the investment-grade bond market.

Company AI Investment Focus Amazon AWS infrastructure and AI data centers Alphabet Gemini AI, cloud infrastructure, custom chips Nvidia AI accelerators and networking Meta Platforms AI models and hyperscale computing Oracle AI cloud infrastructure SpaceX AI-enabled satellite and communications expansion The borrowing reflects one simple reality: AI infrastructure costs hundreds of billions of dollars before it produces meaningful returns.

Bigger Bets Mean Bigger Expectations Granted, borrowing money isn’t automatically a warning sign. Most of these companies enjoy investment-grade credit ratings, generate billions in annual cash flow, and can access debt markets at lower costs than almost anyone else. Amazon and Alphabet each produce tens of billions of dollars in operating cash flow every year, while Nvidia continues posting revenue growth that few large companies have ever matched.

That said, debt creates expectations. Bloomberg reports that seven corporate bond offerings worth at least $25 billion have already been completed this year, matching the total number recorded during the entirety of 2019 through 2025, combined. Six of those blockbuster offerings came from the AI leaders listed above, with Salesforce (NYSE:CRM) accounting for the remaining transaction.

Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.

Ironically, this borrowing boom reflects confidence, not distress. Companies believe AI demand will remain strong enough to justify building infrastructure years before customers fully utilize it. History shows, however, that technological revolutions rarely unfold in a straight line. Demand can outpace expectations for a time before slowing as capacity catches up.

From massive cash reserves to a $182 billion debt binge—Big Tech is betting everything on the AI infrastructure race. © 24/7 Wall St. Debt Is Only Dangerous If Growth Slows This is where investors need to separate headlines from fundamentals. Debt becomes a problem when revenue stalls while interest payments continue rising. That isn’t today’s environment. AI spending continues expanding across cloud computing, enterprise software, semiconductor manufacturing, and digital advertising.

The bigger risk is execution. If AI applications generate enough new revenue to support these investments, today’s borrowing could look remarkably well-timed. Conversely, if companies overbuild data centers or AI adoption develops more slowly than expected, balance sheets could come under greater pressure.

The market is betting on the first outcome. Still, bond markets may have some doubts. Amazon reportedly got something of a cold shoulder for $25 billion it issued this week while S&P Global Ratings downgraded Oracle to the lowest investment-grade rating because of its AI spending binge.

Key Takeaway In short, the AI boom probably won’t collapse simply because companies are borrowing more money at a record pace. Strong balance sheets, investment-grade credit ratings, and robust cash generation give Amazon, Alphabet, Nvidia, Meta, Oracle, and SpaceX financial flexibility that most companies lack.

Regardless, investors should keep watching one metric above all others: return on AI investment. Borrowing $182 billion only makes sense if those dollars produce growing revenue, expanding free cash flow, and higher earnings over time. As long as those metrics continue moving higher, today’s debt looks more like fuel for the AI race than the beginning of a financial crash. If those returns begin to fade, however, the conversation around AI could change much faster than the bond market expects.

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Contact [email protected] for any questions or corrections.

Key Takeaways Oracle's remaining performance obligations reached $638B, driven largely by AI contracts and cloud demand.ORCL guided for faster fiscal 2027 revenue and cloud growth while reaffirming its $90B revenue target.Oracle's Multicloud AI Database and Oracle Health initiatives broaden growth beyond core database software. Shares of Oracle (ORCL - Free Report) have tumbled roughly 29.5% year to date, underperforming the Zacks Computer and Technology sector’s appreciation of 12.6%. This has rattled investors who once viewed the enterprise database giant as a steady compounder, now reinvented as a major artificial intelligence (AI) infrastructure powerhouse.

Oracle shares have swung sharply in 2026, falling from a 52-week high to lows in the mid-$130s before stabilizing in the $140s range. The sell-off reflects mounting anxiety over the capital Oracle must deploy to build its cloud data centers and the debt load required to fund that expansion.

Yet beneath the volatility, Oracle's fourth-quarter and full-year fiscal 2026 results revealed record demand, an enormous contracted backlog and guidance pointing to accelerating growth in fiscal 2027. The board also declared a quarterly cash dividend of 50 cents per share, payable July 24, 2026, a signal of confidence in underlying cash generation even amid heavy AI-related spending.

For investors already holding the stock, several company-disclosed fundamentals argue for patience rather than capitulation, even as real risks keep the near-term outlook clouded.

Oracle Underperforms Industry, Sector YTD
Image Source: Zacks Investment Research

Record Backlog Signals Durable DemandThe clearest reason to stay invested is Oracle's Remaining Performance Obligations, which swelled to $638 billion at the close of the fourth quarter, up from $553 billion just one quarter earlier and up 363% from a year ago. Management has said most of this increase stems from large-scale AI contracts, many of which involve customers prepaying Oracle or supplying their own graphics processing units, a structure that helps offset the capital Oracle itself must raise. Total cloud revenues for the quarter reached $9.9 billion, up 47% in U.S. dollars, with Cloud Infrastructure revenues surging 93% to $5.8 billion and Cloud Applications revenues rising 10% to $4.1 billion. A backlog this size, built around committed AI spending, indicates demand for Oracle's cloud capacity is contractually secured, providing revenue visibility beyond the current fiscal year.

Guidance Points to Accelerating GrowthOracle's own forward-looking commentary offers a second reason for continued conviction. For the first quarter of fiscal 2027, the company guided total revenue growth of 27% to 29% and total cloud revenue growth between 57% and 63% in constant currency, a marked acceleration from fiscal 2026 levels.

The Zacks Consensus Estimate for ORCL’s fiscal 2027 earnings is pegged at $8.03, which suggests 5.24% growth over the figure reported in fiscal 2026.

For fiscal 2027, Oracle reaffirmed its $90 billion total revenue target and raised its non-GAAP earnings-per-share guidance to $8.05, representing 18% growth after adjusting for one-time gains booked in fiscal 2026. Oracle also indicated it does not expect to issue additional debt during 2026, noting that prepaid and customer-supplied hardware tied to its largest AI contracts now total $75 billion, reducing the capital it must independently raise. This combination of accelerating top-line guidance and a funding plan that leans partly on customer contributions offers a more balanced financing picture than the headline capital expenditure figures alone might suggest.

Diversification Beyond the Core Database BusinessA third reason centers on Oracle's expanding footprint outside traditional licensing. The company reported that its Multicloud AI Database business grew 404% in the fourth quarter, which it described as its fastest-growing offering ever. Separately, Oracle said its Health application suite will soon incorporate a new AI-driven version of its Cerner patient care management system, which management expects to push overall Oracle Health growth into double digits in fiscal 2027. These initiatives suggest that Oracle's AI strategy extends beyond raw infrastructure capacity into higher-margin software and healthcare applications, potentially cushioning results if cloud infrastructure growth normalizes from its current elevated pace.

Headwinds That Keep the Outlook BalancedThese positives do not erase the concerns behind the stock's decline. Oracle recorded a negative free cash flow of $23.7 billion in fiscal 2026 as capital investment in data centers outpaced operating cash flow, and the company plans to raise roughly $40 billion more in debt and equity during fiscal 2027, including a previously announced $20 billion at-the-market equity program. Software revenues, historically Oracle's profit anchor, declined slightly for the year, underscoring the ongoing shift away from legacy licensing. Oracle has also flagged risks around its ability to secure sufficient data center capacity, source graphics processing units and manage complex, large-scale government and enterprise contracts, any of which could affect the pace at which today's record backlog converts into recognized revenues. Until financing costs and capital intensity show clearer signs of moderating, near-term price swings are likely to persist, keeping the investment case dependent on execution rather than sentiment alone.

Valuation and Competitive LandscapeFrom a valuation standpoint, ORCL stock is currently trading at a premium with a trailing 12-month Price/Earnings ratio of 22.64x, which is higher than the sector’s average of 0.96x. Oracle carries a Value Score of C. This reflects investor expectations for the accelerating cloud growth outlined in Oracle's own forward guidance.

ORCL’s Premium P/E TTM Valuation
Image Source: Zacks Investment Research

Oracle Cloud Infrastructure continues expanding against Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) and Alphabet (GOOGL - Free Report) -owned Google, the three largest hyperscalers by cloud footprint and Oracle's primary rivals in enterprise AI workloads. Oracle has positioned its Multicloud AI Database, now available across Amazon and Microsoft data centers, with Google integration also underway, as a differentiator, letting customers run Oracle databases directly inside rival cloud environments. While Amazon and Microsoft maintain broader overall infrastructure scale, and Google keeps expanding its AI-optimized capacity, Oracle's fastest-growing segment and multicloud partnerships carve out a distinct niche. Continued execution relative to these rivals will determine whether Oracle's current valuation premium proves justified by delivered growth.

ConclusionOracle's record backlog, accelerating fiscal 2027 guidance, and expanding AI database and healthcare initiatives support holding the stock despite its steep year-to-date decline. However, heavy capital spending, rising debt financing needs, and execution risk mean investors should monitor upcoming quarterly results closely rather than adding aggressively in the near term. ORCL stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Block's consumer-lending originations rose 82% year over year to $17.6 billion in first-quarter 2026.XYZ expanded Cash App Borrow and Afterpay offerings, lifting Financial Solutions gross profit 55%.Block's lending growth came with higher credit losses, though cash and operating cash flow remain strong. Block Inc.’s (XYZ - Free Report) consumer-lending business is emerging as a key growth driver, fueled by the rapid adoption of Cash App Borrow and Afterpay. Consumer-lending originations reached $17.6 billion in the first quarter of 2026, up 82% year over year, led by a roughly 175% increase in Cash App Borrow originations as eligibility expanded to more Cash App Green customers.

Block continues to broaden its lending ecosystem through Afterpay's installment offerings, including Post-Purchase, Pre-Purchase, Pay Monthly and BNPL options integrated into Cash App Pay and peer-to-peer payments. The strategy is driving higher engagement and monetization. Financial Solutions gross profit climbed 55% year over year in the first quarter, while Cash App Financial Solutions gross profit per active customer increased 60%. Overall, Cash App gross profit rose 38%, with lending among the largest contributors.

Rapid expansion, however, has been accompanied by higher credit costs. Transaction, loan and consumer receivable losses rose to $500 million in the first quarter from $170 million a year earlier. The allowance for credit losses on loans held for investment increased 26% sequentially to $482.8 million, while classified higher-risk loans grew 23% to $467.3 million.

Cash App Borrow gross loss rates ranged from 3.16% for newer borrowers to 2.67% for customers with more than 13 months of tenure, indicating relatively stable cohort performance. With $6.86 billion in cash and strong operating cash flow, Block appears well positioned to support lending growth, provided gross profit continues to outpace normalized credit losses.

How Are Block’s Competitors Faring?Dave Inc.’s (DAVE - Free Report) offers ExtraCash advances of up to $500 with no interest, credit checks or late fees. In first quarter 2026, DAVE reported $158.4 million in revenue, up 47%, while ExtraCash originations rose 37% to $2.1 billion. DAVE also reached roughly 3 million monthly transacting members.

SoFi Technologies (SOFI - Free Report) competes through larger unsecured personal loans for debt consolidation and major expenses. SOFI originated $8.3 billion in personal loans in the first quarter 2026. Unlike short-term cash advances, SOFI uses fixed monthly installments and serves borrowers seeking larger loan amounts.

XYZ’s Price Performance, Valuation & EstimatesShares of Block have rallied 20.5% over the past three months, outperforming the broader industry and the S&P 500 Index.

Image Source: Zacks Investment Research

In terms of forward 12-month P/E, XYZ stock is trading at 17.30X, which is at a discount to the Zacks Internet Software industry’s 27.09X.

Image Source: Zacks Investment Research

Block’s earnings estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised marginally northward. The figure indicates a significant increase year over year.

Image Source: Zacks Investment Research

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

Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.

Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.

Below, we take a look at U.S. Bancorp (USB - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.

It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. U.S. Bancorp currently has a Zacks Rank of #2 (Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.

You can see the current list of Zacks #1 Rank Stocks here >>>

Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for USB that show why this company shows promise as a solid momentum pick.

Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.

For USB, shares are up 1.35% over the past week while the Zacks Banks - Major Regional industry is up 1.35% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 7.41% compares favorably with the industry's 5.84% performance as well.

While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Shares of U.S. Bancorp have increased 11.57% over the past quarter, and have gained 30.12% in the last year. On the other hand, the S&P 500 has only moved 10.84% and 21.72%, respectively.

Investors should also take note of USB's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. Right now USB is averaging 8,819,863 shares for the last 20 days..

Earnings OutlookThe Zacks Momentum Style Score also takes into account trends in estimate revisions, in addition to price changes. Please note that estimate revision trends remain at the core of Zacks Rank as well. A nice path here can help show promise, and we have recently been seeing that with USB.

Over the past two months, 6 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost USB's consensus estimate, increasing from $5.09 to $5.11 in the past 60 days. Looking at the next fiscal year, 5 estimates have moved upwards while there have been no downward revisions in the same time period.

Bottom LineTaking into account all of these elements, it should come as no surprise that USB is a #2 (Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep U.S. Bancorp on your short list.

Compromised Developer Account Triggers npm Supply Chain Attack@Injective Labs moved quickly to contain a software supply chain attack after hackers compromised a developer's GitHub account and used it to publish a malicious version of the protocol's TypeScript SDK on npm.

Security firm Socket detected a malicious @injectivelabs/[email protected] release published to npm with fake telemetry functionality that exfiltrates wallet private keys and mnemonic phrases. The malicious functionality was introduced through commits submitted by a GitHub account belonging to a developer with an established history of contributions to the repository.

The bad version, 1.20.21, was live on npm for under an hour on June 8, 2026, before the maintainer noticed and published a clean fix. The threat actor also published version 1.20.21 across 17 additional @injectivelabs scoped packages that depended on and pinned the malicious SDK version, exposing transitive users who may not have installed @injectivelabs/sdk-ts directly.

The malware activates when developers use SDK functions that generate or import wallet keys, rather than upon installation. Once those functions are called, the malware captures the full mnemonic seed phrase and private key and encodes the data in base64, exfiltrating it via an HTTP POST request to an Injective Labs public infrastructure endpoint to make the traffic appear legitimate.

Protocol Response and User Fund SafetyInjective CEO Eric Chen confirmed the affected npm releases had been deprecated and the issue was fixed, adding that no funds on the Injective network were at risk. No confirmed number of affected wallets has been released, and there is no public evidence that funds were stolen. The incident did not involve a breach of the Injective blockchain itself.

Independent security researchers, however, noted the response was not without caveats. Socket reported the malicious version of the package was downloaded 310 times before it was deprecated, not removed, and the malicious GitHub release artifacts remain available. Socket recommended upgrading to version 1.20.23, reviewing dependency chains, and treating any wallet credentials processed by the compromised releases as fully compromised.

The incident is part of a broader pattern targeting crypto developer tooling. Wallet compromises were the costliest crypto attack method in the first half of 2026, accounting for $444 million stolen across 33 cases, according to CertiK. Rather than attacking the blockchain directly, attackers targeted a trusted software component used by developers, a method commonly described as a software supply chain attack.

Sources:
Socket: Compromised Injective SDK npm Package Exfiltrates Wallet Keys
BleepingComputer: Injective SDK on npm Infected with Cryptocurrency Wallet Stealer
CoinTelegraph: Injective NPM Package Hacked to Steal Crypto Wallet Keys

Bitget has launched the SKHYUSDT perpetual contract.

According to official announcements, Bitget has launched the SKHYUSDT perpetual contract, with a maximum leverage of 20x, and contract trading bots will be available simultaneously.

2 hours ago

Bitget launches SK Hynix’s rSKHY for the first time, offering new users the chance to split an equivalent of $50,000 worth of stocks via trading.

According to official announcements, Bitget has launched its stock spot rToken for SK Hynix (rSKHY) as its first such offering. From now until July 17, users trading rSKHY will enjoy zero trading fees. Additionally, the platform has rolled out a dedicated new user campaign with a total prize pool of SK Hynix equivalent to 50,000 USDT. During the campaign, newly registered users who complete a net deposit of no less than 1,000 USDT and their first trade will randomly receive rSKHY worth between 10 and 88 USDT. New users participating in rSKHY trading who meet cumulative trading volume thresholds can unlock tiered stock rewards, with a maximum of rSKHY worth 888 USDT per individual. The campaign runs from July 10 to July 17.

2 hours ago

Over the past 24 hours, global crypto liquidations hit $236 million, with short positions making up the bulk of the liquidations.

According to Coinglass data, global crypto market liquidations reached $236 million over the past 24 hours, including $68.7 million in long-position liquidations and $167 million in short-position liquidations.

2 hours ago

Binance to List SKHYUSDT USDT-Margined Perpetual Contract

Per official announcement, Binance will launch the SKHYUSDT perpetual contract at 23:50 UTC+8 on July 10, 2026, with a maximum leverage of 50x.

2 hours ago

Empery Digital reduces its Bitcoin reserves by 1,400 BTC.

Empery Digital has reduced its Bitcoin reserves, selling 1,400 BTC for $87.1 million to support its AI data center project, repay debts, and cover legal fees. The company currently holds 1,514 BTC, valued at nearly $100 million.

2 hours ago

SKHYV shares are moving. See the real-time price action here.  A Mega IPO With Market-Wide ConsequencesStephen Callahan, trading behavior analyst at Firstrade, flagged the risks of such a large U.S. ADR listing in an exclusive conversation with Benzinga. 

He warned that "such a big IPO and its huge supply of new shares will require a lot [of] liquidity from institutional capital," adding that "this money needs to come from somewhere." 

After a year of aggressive inflows into AI and semiconductor names, that "somewhere" may increasingly mean existing winners.

Micron’s 22% Drop Raises Red FlagsMicron Technology Inc. (NASDAQ:MU) may already be showing signs of strain. Shares have dropped roughly 22% over the past two weeks, a move that stands out against a still-intact fundamental backdrop for memory demand. 

Callahan suggests the weakness in Micron could be less about earnings outlook and more about positioning, noting that institutions "may need to sell off some chip and AI stocks to add SK Hynix to their portfolios."

The dynamic points to a classic supply-demand imbalance. A large, high-profile IPO effectively introduces new equity supply into an already crowded trade. 

If institutional allocations to semiconductors and AI are near limits, adding SK Hynix exposure may force portfolio managers to trim elsewhere—particularly in names that have seen the biggest runs.

ETF Outflows Could Add PressureThat, in turn, may add another layer of selling pressure across related holdings, including Samsung and other index components.

The TakeawayMicron’s pullback may be the first visible crack in what has been a momentum-driven rally. If Callahan’s liquidity warning proves accurate, the SK Hynix listing could act as a near-term stress test — revealing just how much demand remains beneath the surface of the AI trade, and how much of it has already been fully allocated.

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Micron Technology, Inc. delivered extraordinary Q3 results, with 346% revenue growth and a 1,215% YoY EPS surge, far surpassing aggressive expectations. Pricing power is unprecedented, driven by tight supply and AI-driven demand, resulting in gross margins expanding 46 percentage points YoY to 85%. Strategic Customer Agreements lock in multi-year, non-cancelable commitments, significantly reducing cyclicality and enhancing business resilience.