Meta Platforms (NASDAQ: META) has received a fresh bullish endorsement on Wall Street after Truist Securities reaffirmed its ‘Buy’ rating and maintained an $840 stock price target.
The target implies upside of about 37% from Meta’s press-time price of $612.
META one-week stock price chart. Source: Finbold The updated outlook comes as the firm argued that Meta remains deeply undervalued, citing the company’s massive global user base and growing ability to monetize artificial intelligence across its ecosystem.
Truist analyst Youssef Squali’s thesis centers on Meta’s unique distribution advantage, which includes more than 3.5 billion daily users, over 200 million small and medium-sized businesses, and more than 10 million advertisers across its platforms.
According to the research note, Meta’s AI strategy is increasingly focused on monetization rather than solely competing in the race for model quality.
Truist highlighted the company’s ability to integrate its AI products across major platforms such as Instagram, WhatsApp, and Messenger, creating what it sees as a competitive advantage that rivals may struggle to replicate.
The firm also pointed to early signs of success from the rollout of its AI initiatives and identified further execution on small-business tools as a potential catalyst for the stock.
Meanwhile, Truist’s outlook aligns with the broader Wall Street consensus on Meta.
According to data from TipRanks, Meta carries a ‘Strong Buy’ consensus rating based on 38 analyst reviews, including 33 ‘Buy’ ratings, five ‘Hold’ ratings, and no ‘Sell’ recommendations.
The average 12-month Meta stock forecast stands at $818.23, representing potential upside of about 33.6%. Analysts’ targets range from a low of $622.25 to a high of $1,015.
META 12-month stock price prediction. Source: TipRanks The bullish outlook comes as Meta shares recently climbed above $600, with investors balancing strong advertising growth against the company’s heavy AI spending.
The tech giant reported first-quarter revenue of $56.3 billion, up 33% year-over-year. Despite the strong performance, Meta stock remains down roughly 9% to 12% in 2026 as concerns persist over its aggressive investment in AI infrastructure.
Meta recently raised its 2026 capital expenditure guidance to between $125 billion and $145 billion to support new data centers and AI initiatives, including Meta Superintelligence Labs.
While the increased spending has weighed on near-term sentiment, management still expects operating income growth this year and guided for second-quarter revenue of $58 billion to $61 billion.
Best Crypto Exchange for Intermediate Traders and Investors
Invest in cryptocurrencies and 3,000+ other assets including stocks and precious metals.
0% commission on stocks - buy in bulk or just a fraction from as little as $10. Other fees apply. For more information, visit etoro.com/trading/fees.
Copy top-performing traders in real time, automatically.
eToro USA is registered with FINRA for securities trading.
30+ million Users worldwide
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. Don’t invest unless you’re prepared to lose all the money you invest. This is a high-risk investment and you should not expect to be protected if something goes wrong. Take 2 mins to learn more.
Join Finbold's newsroom, become a Sales Executive today! Apply now to join Finbold as a crypto/finance news writer!
Many investors have grown concerned that tech companies, particularly hyperscalers, are spending too aggressively on artificial intelligence (AI). It's a touchy subject because if it turns out to be true, it could send share prices crashing. There's been a growing pushback on AI data centers from the public, and there is concern that many companies are using AI excessively (also known as "tokenmaxxing") without any real payoff.
Meta Platforms (META +1.01%) CEO Mark Zuckerberg recently made an announcement that, while it sounds like it should unlock some growth opportunities for the business, may end up revealing a risk: that it's been spending too aggressively on AI.
Image source: Getty Images.
Meta plans to sell excess computing power One of Meta's newest business ventures now involves selling excess AI capacity, not unlike what some other tech companies are already doing. What's puzzling about this, however, is that Meta has been spending aggressively on AI and has made its Meta AI assistant available in its social media applications, unveiled Muse Spark (its new foundation model), and last year it also launched Superintelligence Labs.
The idea that Meta thinks it might not need some of its AI capabilities amid such vast efforts is a bit surprising, but perhaps reflective of its excessive spending. This is, after all, the same company that has spent tens of billions of dollars on the metaverse and even underwent a name change years ago to reflect its change in strategy.
In May, at the company's annual shareholder meeting, Zuckerberg said that if it has overbuilt, it can sell compute to other companies at a premium. While the initial suggestion may have seemed innocent and nondefinitive, plans to build a new cloud business suggest it's much more than that, and may indicate the company has recognized it has invested too heavily in AI.
Today's Change
(
1.01
%) $
6.06
Current Price
$
606.35
Is this a red flag for Meta investors? Meta and other tech companies spent aggressively amid the pandemic, overestimating demand and anticipating a new normal that didn't pan out. Meta took it even further and spent aggressively on the metaverse, and that remains a costly venture for it today, with its Reality Labs division still incurring billions in losses each quarter.
This is a company that simply doesn't inspire much confidence that it's being methodical or thoughtful about its expenditures, and that raises the risk that, in the future, it may again make drastic cost-cutting efforts to correct for its excessive spending and investments. New plans for a cloud business to sell excess AI compute power may very well end up proving to be an early sign of that, which is why I'd tread carefully with Meta's stock. Although it's down 9% this year, there could be far further for the stock to fall if investors begin to worry that it's overspent on AI.
Meta Platforms (NASDAQ: META | META Price Prediction) and CoreWeave (NASDAQ: CRWV) just closed the books on their Q1 2026 reports with sharply divergent financial profiles. Meta printed $56.31 billion in revenue while raising capex guidance to $125 to $145 billion. CoreWeave grew sales 111.7% to $2.078 billion but posted a $740 million net loss.
One Prints Cash. The Other Prints Debt. Meta is a self-funding machine. Advertising revenue climbed 33% to $55.02 billion, ad impressions rose 19%, and pricing per ad jumped 12%. That funded $19 billion in Q1 capex without touching the balance sheet. Mark Zuckerberg framed the buildout around “personal superintelligence” and the debut model from Meta Superintelligence Labs.
CoreWeave’s story is different. CEO Michael Intrator called it “the strongest bookings quarter in CoreWeave’s history,” with backlog approaching $99.4 billion and active power crossing 1 GW. Yet capex hit $7.695 billion, roughly 370% of quarterly revenue, and interest expense doubled to $536 million. Total liabilities now sit at $50.81 billion against $55.57 billion in assets.
Q1 2026 Driver Meta CoreWeave Operating Margin ~41% -6.9% Free Cash Flow $12.39B -$4.71B Funding Source Internal FCF Debt and equity issuance The $21 Billion Handshake Hides a Structural Problem Meta signed a $21 billion multi-year compute partnership with CoreWeave through 2032, which explains why CoreWeave’s backlog looks so fat. The catch is what Bloomberg reported about “Meta Compute,” an initiative to turn Meta’s in-house AI infrastructure into a public cloud that rents out excess bare-metal GPU capacity. Meta’s largest customer relationship with CoreWeave could morph into direct competition inside the same contract window.
That matters because CoreWeave’s pricing power rests on GPU scarcity. If Meta redirects even a slice of its $145 billion capital expenditure cycle into rentable capacity, the neocloud scarcity premium erodes. Insider selling ahead of the earnings report and the securities class action alleging concealed data center delays aren’t helping.
What I’m Watching Into Q2 Meta reports Q2 on July 29, and I want to see whether ad pricing holds while capex accelerates. For CoreWeave, the question is margin trajectory. Operating margin has flipped from +3.8% in Q3 2025 to -6.9% in Q1 2026 even as revenue exploded. That’s the wrong direction.
Why I’d Rather Own Meta Here For me, Meta is the cleaner bet. It trades at a P/E near 21 with 57 buy ratings and a consensus target of $828.17 against a $600.29 quote. CoreWeave analysts still see upside to $142.29, but the setup only works if AI GPU pricing stays tight. If you believe Meta Compute lands as advertised, that assumption cracks. On the data, Meta’s self-funded balance sheet looks better positioned than CoreWeave’s debt-financed buildout if GPU pricing softens.
Here at Zacks, we offer our members many different opportunities to take full advantage of the stock market, as well as how to invest in ways that lead to long-term success.
One of our most popular services, Zacks Premium offers daily updates of the Zacks Rank and Zacks Industry Rank; full access to the Zacks #1 Rank List; Equity Research reports; and Premium stock screens like the Earnings ESP filter. All are useful tools to find what stocks to buy, what to sell, and what are today's hottest industries.
Also included in Zacks Premium is the Focus List. This is a long-term portfolio of top stocks that have all the traits to beat the market.
Breaking Down the Zacks Focus ListIf you could, wouldn't you jump at the chance for access to a curated list of stocks to kickstart your investing journey?
That's what the Zacks Focus List offers. It's a portfolio of 50 stocks that serve as a starting point for long-term investors to build their individual portfolios. The stocks included in the list are set to outperform the market over the next 12 months.
Additionally, each selection is accompanied by a full Zacks Analyst Report, something that makes the Focus List even more valuable. The report explains in detail why each stock was picked and why we believe it's good for the long-term.
The portfolio's past performance only solidifies why investors should consider it as a starting point. For 2020, the Focus List gained 13.85% on an annualized basis compared to the S&P 500's return of 9.38%. Cumulatively, the portfolio has returned 2,519.23% while the S&P returned 854.95%. Returns are for the period of February 1, 1996 to March 31, 2021.
Focus List MethodologyWhen stocks are picked for the Focus List, it reflects our enduring reliance on the power of earnings estimate revisions.
Earnings estimates, or expectations of growth and profitability, come from brokerage analysts who track publicly traded companies; these analysts work together with company management to analyze every aspect that may affect future earnings, like interest rates, the economy, and sector and industry optimism.
What a company will earn down the road also needs to be taken into consideration, and this is why earnings estimate revisions are so important.
The stocks that receive positive changes to earnings estimates are more likely to receive even more upward changes in the future. Take this example: if an analyst raised their estimates last month, they'll probably do so again this month, and other analysts will follow.
Utilizing the power of earnings estimate revisions is when the Zacks Rank joins the party. A unique, proprietary stock-rating model, the Zacks Rank uses changes to quarterly earnings expectations to help investors create a winning portfolio.
The Zacks Rank consists of four main pillars: Agreement, Magnitude, Upside, and Surprise. Each one is given a raw score, which is recalculated every night and compiled into the Rank. Then, stocks are classified into five groups, ranging from "Strong Buy" to "Strong Sell," using this data.
The Focus List is comprised of stocks hand-picked from a long list of #1 (Strong Buy) or #2 (Buy) ranked companies, meaning that each new addition boasts a bullish earnings consensus among analysts.
Because stock prices react to revisions, buying stocks with rising earnings estimates can be very profitable. Focus List stocks offer investors a great opportunity to get into companies whose future earnings estimates will be raised, potentially leading to price momentum.
Focus List Spotlight: Tesla (TSLA - Free Report) Over the years, electric vehicle (EV) maker Tesla has evolved into a dynamic technology innovator. It has transformed the EV space like Amazon changed the retail landscape and Netflix revolutionized entertainment. Tesla, which managed to garner a gold-standard reputation over the years, is now a far bigger entity than it was at the time of its IPO in 2010. However, with growing competition, Tesla's market share in battery-powered electric car sales in the United States has eroded to around 50%, from roughly 80% in 2020.
On August 29, 2024, TSLA was added to the Focus List at $205.75 per share. Shares have increased 104.02% to $419.77 since then, and the company is a #3 (Hold) on the Zacks Rank.
For fiscal 2026, five analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.01 to $2.01. TSLA boasts an average earnings surprise of 5.5%.
Earnings for TSLA are forecasted to see growth of 21.1% for the current fiscal year as well.
Reveal Winning StocksUnlock all of our powerful research, tools and analysis, including the Zacks #1 Rank List, Equity Research Reports, Zacks Earnings ESP Filter, Premium Screener and more, as part of Zacks Premium. You'll quickly identify which stocks to buy, hold and sell, and target today's hottest industries, to help improve the performance of your portfolio. Gain full access now >>
Tesla (NASDAQ:TSLA | TSLA Price Prediction) keeps proving that investors can become fixated on the wrong metric. Every quarterly delivery report sparks debate over electric vehicle demand, price cuts, and market share. Its recent expansion of the Cybercab robotaxi service into Miami only reinforced that narrative, with Morgan Stanley forecasting Tesla could operate a fleet of roughly 30,000 robotaxis by 2030.
Those developments matter, but they may not be the biggest reason to own the stock. While headlines remain centered on cars, Tesla has been quietly building another business that could benefit from one of the world’s largest investment themes: modernizing the electric grid.
Tesla’s EVs Still Grab the Spotlight Tesla recently delivered more vehicles than many analysts expected, easing concerns that slowing EV demand would pressure growth throughout 2026. The company’s rollout of its Cybercab robotaxi service into Miami also demonstrated that autonomous transportation remains a central part of Elon Musk’s long-term vision.
Yet, autonomous driving still faces regulatory hurdles, technology risks, and competitive pressure from rivals including Alphabet‘s (NASDAQ:GOOG) Waymo and other emerging players.
Investors, though, should look beyond the vehicles themselves. Whether Tesla sells EVs to individual drivers or deploys them in a ridesharing fleet, both businesses ultimately compete in mature transportation markets. The opportunity investors may be underestimating sits elsewhere.
tsla
Energy Storage is Becoming a Second Growth Engine Tesla’s first-quarter shareholder update showed energy storage deployments declined 15% year over year. At first glance, that looked like a warning sign, but management explained the decline reflected the timing of large utility-scale projects rather than weakening demand. Megapack installations are tied to customer construction schedules, permitting timelines, and grid connections. Unlike vehicle sales, these projects do not arrive evenly throughout the year.
That explanation already appears to be playing out. Tesla just announced a Megapack agreement with Esyasoft, an Indian digital platform for utility grid management and electrification. The deal is worth as much as $3 billion to deliver more than 15 gigawatt-hours (GWh) of battery energy storage systems across the U.K., Western Europe, the Gulf Cooperation Council, and India.
According to Tesla Energy & Charging Vice President Mike Snyder, Tesla’s vertically integrated approach allows the company to streamline projects from design through operation while accelerating deployment of modern grid infrastructure.
The deal also fits a much larger trend. According to Tesla observer Sawyer Merritt on X, more than $9 billion worth of new Tesla Megapack projects totaling over 43 GWh have been announced during the past six weeks. The Basenor blog also highlighted a growing list of recent Megapack wins spanning utilities and commercial customers across multiple continents.
Just this year, Tesla energy has:
Secured the first phase of a program with NatPower to build 25 GWh of storage across Italy and Britain, while targeting over 100 GWh over 20 years. Potential revenue could exceed $15 billion. xAI purchased an $269 million of Megapack product, for a total of over $1 billion worth since 2024. Signed an $80 million order with Belgium’s Energy Solutions Group for a 76 MW / 304 MWh system, with an eye toward a 2027 grid connection. That isn’t the pattern of a business losing momentum. It’s the pattern of one whose revenue arrives in waves.
The Grid May Be Tesla’s Largest Addressable Market Battery storage solves one of renewable energy’s biggest problems: balancing electricity supply when the sun isn’t shining or the wind isn’t blowing. Utilities worldwide are investing billions to strengthen aging grids while supporting AI data centers, electrification, and rising electricity demand. Tesla’s Megapack business sits squarely at that intersection.
Some investors continue to speculate that Tesla could eventually merge with SpaceX (NASDAQ:SPCX), creating another catalyst for the shares. Unless and until that happens, however, Tesla already has a powerful growth engine operating in plain sight.
Key Takeaway In short, Tesla’s EV business and robotaxi ambitions deserve attention, but they may no longer define the company’s largest long-term opportunity. Delivery numbers will continue moving the stock quarter to quarter, while Cybercab could reshape transportation over time. Yet the energy business is quietly building a multibillion-dollar backlog supported by global grid modernization.
Smart investors should keep watching vehicle deliveries, but they should pay even closer attention to Megapack orders. The numbers increasingly suggest Tesla is becoming as much an energy infrastructure company as it is an automaker.
The headline number cuts through the noise around Tesla (NASDAQ:TSLA | TSLA Price Prediction) faster than any product roadmap can. It is the price tag investors have chosen to hang on the entire enterprise, and Q1 finally gave the bulls a fresh reason to defend it.
The Number Tesla’s market capitalization sits at roughly $1.48 trillion as of July 2, 2026, built on 3.76 billion shares outstanding and a trailing P/E of 383. That valuation is what makes the $500 billion question so sharp: how much of this trillion-dollar-plus market cap is priced for a car company, and how much is being paid up front for AI, robotics, and autonomy that has yet to show up on the income statement?
What It Means On the surface, Tesla’s multiple looks stretched against the fundamentals. Full-year 2025 revenue came in at $94.83 billion, down 2.93% year over year, with net income of $3.794 billion after a 46.79% annual decline. Return on equity is 4.89%, gross margin is 18.03%, and the PEG ratio of 6.23 sits well above the 1.0 line typically used as a fair-value marker.
I think tesla’s Q1 2026 quarter changed the arithmetic of the argument. The company’s revenue rebounded to $22.39 billion, up 15.78% year over year. EPS came in at $0.41, topping consensus expectations by 14.14%. Automotive gross margin expanded to 21.1% from 16.2%. Operating income jumped 135.84% to $941 million, and free cash flow rose 117.47% to $1.444 billion. Cash on the balance sheet climbed to $44.743 billion, up 173.62% from a year earlier.
Market Reaction The stock has not confirmed the fundamental turn. Shares closed at $393.45 on July 2, 2026, down 7.49% on the day, down 12.51% year to date, and down 7.15% over the past month. Over one year, however, shares are still up 24.65%, and over ten years, up 2,625.98%.
Bull Case The bull argument for Tesla now rests on three data points that showed up together for the first time in a year. Margin expansion is real, with 490 basis points of automotive gross margin recovery in a single quarter. Operating leverage is returning, with 136% operating income growth on 15.78% revenue growth is the definition of an inflection. And the company’s software lineup is starting to matter, as Tesla’s Services & Other revenue reached $3.745 billion, up 42% year over year, powered by 1.28 million active FSD subscriptions, up 51% year over year.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Tesla didn't make the cut. Grab the names FREE today.
The forward pipeline adds ballast. Management placed Cybercab, Tesla Semi, and Megapack 3 on schedule for volume production in 2026, and confirmed Optimus production lines are being installed at Fremont and Gigafactory Texas. On Tesla’s Q1 call, Elon Musk said unsupervised FSD revenue “will be material probably in a significant way next year” and described Optimus as “probably the biggest product ever”. CFO Vaibhav Taneja set 2026 capital expenditure at over $25 billion.
Notably, analyst consensus target price sits at $421.16, with 23 Buy, 18 Hold, and 6 Sell ratings.
Bottom Line For long-term holders, Q1 2026 is the first quarter in the last four where growth, margin, and cash flow moved in the same direction. That does not resolve the valuation debate at a forward P/E of 217 against a 4.48% ten-year Treasury yield, and prediction markets remain skeptical on the near-term catalysts, pricing a California robotaxi launch at 22% and Optimus release by year-end at 10%.
The bull case is that the trillion-dollar tag stops being a question and starts being an base once software, energy, and robotics revenue compound on top of an auto business whose margins just found their footing. The next reading arrives with the Q2 report, and after Q1, the bar has shifted from whether Tesla can grow to whether it can keep doing it.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Tesla didn't make the cut. Grab the names FREE today.
Tesla (TSLA 2.89%) is a leader in the electric vehicle (EV) market, and a key metric many investors often look for is how many deliveries it made during the past quarter. Strong delivery numbers can be a great sign of rising demand and that the business is doing well.
Recently, however, Tesla reported its delivery numbers, which blew past expectations, and yet, that didn't give the stock a boost. It even fell on the news. What's going on with the stock, and could its weakness this year make for a great buying opportunity, or could it fall even lower?
Image source: Getty Images.
Why strong delivery numbers may not be enough to give the stock a boost Last week, Tesla reported its delivery numbers for the second quarter, which came in at 480,126. That's significantly higher than the 406,600 that analysts were expecting. It's a massive beat on the key metric, but the stock still fell by nearly 8% the day the numbers came out. A year ago, its deliveries for the quarter were 384,122, which means these latest figures indicate a 25% increase.
While the news wasn't bad, it may have reminded investors that Tesla's core business is EVs and will be for the foreseeable future. Although that may seem obvious, the stock doesn't trade like an EV stock but rather an artificial intelligence stock, with CEO Elon Musk's focus largely on robots and visions that go far beyond EVs. Plus, the company has been offering lower-priced vehicles to be more competitive. This means that while it may generate more revenue from greater deliveries, that may not necessarily translate into huge profit growth, given its tighter margins.
Today's Change
(
-2.89
%) $
-12.13
Current Price
$
407.64
Is Tesla's stock a good buy on weakness right now? Tesla's stock is down close to 20% from its 52-week high as investors have become more bearish on the company in light of its worsening results. Last year, the company's profit of $3.8 billion was nearly half of the $7.1 billion it reported a year earlier, and down drastically from a $15 billion profit in 2023.
Shrinking profits have made the stock more expensive relative to earnings, with the stock trading at a price-to-earnings ratio of more than 370. It's a massive premium, underscoring just how much optimism is priced in and how high expectations are for the future. Tesla's EV business may be driving its revenue and profit, but not its sky-high valuation. At such a high premium, investors are taking on significant risk with Tesla's stock, as there is plenty of room for it to fall much lower.
The Consumer Staples group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Coca-Cola (KO - Free Report) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? A quick glance at the company's year-to-date performance in comparison to the rest of the Consumer Staples sector should help us answer this question.
Coca-Cola is one of 185 companies in the Consumer Staples group. The Consumer Staples group currently sits at #15 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different sector groups. The average Zacks Rank of the individual stocks within the groups is measured, and the sectors are listed from best to worst.
The Zacks Rank emphasizes earnings estimates and estimate revisions to find stocks with improving earnings outlooks. This system has a long record of success, and these stocks tend to be on track to beat the market over the next one to three months. Coca-Cola is currently sporting a Zacks Rank of #2 (Buy).
The Zacks Consensus Estimate for KO's full-year earnings has moved 1% higher within the past quarter. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Based on the latest available data, KO has gained about 18.7% so far this year. Meanwhile, stocks in the Consumer Staples group have gained about 9.2% on average. This means that Coca-Cola is outperforming the sector as a whole this year.
Another Consumer Staples stock, which has outperformed the sector so far this year, is Corteva, Inc. (CTVA - Free Report) . The stock has returned 28.9% year-to-date.
The consensus estimate for Corteva, Inc.'s current year EPS has increased 2.4% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Coca-Cola belongs to the Beverages - Soft drinks industry, which includes 20 individual stocks and currently sits at #110 in the Zacks Industry Rank. This group has gained an average of 14.2% so far this year, so KO is performing better in this area.
On the other hand, Corteva, Inc. belongs to the Agriculture - Operations industry. This 11-stock industry is currently ranked #95. The industry has moved +24.8% year to date.
Coca-Cola and Corteva, Inc. could continue their solid performance, so investors interested in Consumer Staples stocks should continue to pay close attention to these stocks.
Amazon.com is looking to raise at least $25 billion from a US dollar bond sale, its latest funding push as the company ramps up investment in AI infrastructure. Robert Schiffman and Ed Ludlow have more on "Bloomberg Open Interest.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Amazon (AMZN - Free Report) .
Amazon currently has an average brokerage recommendation (ABR) of 1.19, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 57 brokerage firms. An ABR of 1.19 approximates between Strong Buy and Buy.
Of the 57 recommendations that derive the current ABR, 49 are Strong Buy and five are Buy. Strong Buy and Buy respectively account for 86% and 8.8% of all recommendations.
Brokerage Recommendation Trends for AMZN
Check price target & stock forecast for Amazon here>>>
The ABR suggests buying Amazon, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
ABR Should Not Be Confused With Zacks RankIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Is AMZN a Good Investment?In terms of earnings estimate revisions for Amazon, the Zacks Consensus Estimate for the current year has increased 0.4% over the past month to $8.86.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for Amazon. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Amazon may serve as a useful guide for investors.
Amazon is returning to the bond market with a multitranche debt offering as strong investor demand keeps borrowing costs low while the company continues investing heavily in AI infrastructure.
Amazon.com Inc (NASDAQ:AMZN) is planning to raise at least $25 billion through an eight-part bond offering as the company seeks additional funding for its artificial intelligence infrastructure expansion, according to various media reports.
The company disclosed in a regulatory filing that it plans to issue floating- and fixed-rate notes but did not provide the size of the offering. Bloomberg News was first to report the size of the offering and noted that the sale could be increased depending on investor demand.
The bond offering is expected to include senior unsecured debt with maturities ranging from three to 40 years, according to a term sheet cited by Reuters. Amazon told Reuters that proceeds from the sale would be used for general corporate purposes, including future capital expenditures and the repayment of upcoming debt maturities.
The planned raise follows several recent debt offerings by Amazon as major technology companies turn to capital markets to fund large-scale AI investments. The company previously raised approximately $54 billion through bond sales in the US and Europe earlier this year, followed by a $10 billion Canadian bond offering in June.
The company’s latest offering is being managed by Barclays, Goldman Sachs, J.P. Morgan and Morgan Stanley (NYSE:MS) as joint book-running managers, according to Amazon’s filing.
Shares of Amazon were little changed at $243 following the reports.
All year, Michael Burry has been shorting AI. He bought put options against Nvidia. He shorted Palantir. He posted on Substack in May comparing the current market to the last months of 1999. If you followed his moves in 2026, you were building a pretty clear picture of where he stood.
On June 25, he blew that picture up. Burry’s firm Scion Asset Management disclosed it had bought December 2028 LEAP call options on Microsoft with a strike price in the low $700s. Microsoft was trading around $356 at the time. He is betting it will nearly double before the end of 2028.
What Michael Burry’s Microsoft LEAP options bet actually meansGetting to $700 is not enough on its own. The options only become profitable once Microsoft clears the strike price plus whatever premium Burry paid for the contracts. Fall short of that by December 2028 and the entire premium is gone.
Burry explained his thinking in the Substack post. He wrote that “$350 level for Microsoft is a good place to buy” and described the longer-dated options as cheap relative to his outlook. LEAPs let him express that conviction without committing the capital a straight stock purchase would require.
How much capital he actually committed is unknown. Scion Asset Management chose to deregister from the SEC on November 10, 2025, wound down its outside investor capital, and moved to a family office structure. The June 25 Substack post had no contract counts or dollar figures. Nobody outside Scion knows whether this is a small speculative position or a major allocation.
Why Microsoft stock fell 32% even as its AI revenue hit $37 billionMicrosoft stock dropped roughly 32% from its July 2025 peak of $550.83 going into Burry’s disclosure. Azure cloud revenue grew 40% in its most recent quarter. Annualized AI revenue crossed $37 billion, up 123% year over year. More than 80% of Fortune 500 companies run workloads on Azure. None of that stopped the stock from falling.
The culprit was the spending plan. Microsoft committed to $190 billion in capital expenditures for 2026, nearly all of it going into AI infrastructure. Shares fell over 3% in after-hours trading on that news even though earnings came in above expectations. Investors are not disputing the revenue. They are worried about how many years of heavy spending come before the returns show up.
Burry pushed back on that read in his Substack. He called 2026’s software selloff a product of “reflexive market dynamics,” a feedback loop between declining stock prices and stress in the bank debt market, not a sign of businesses deteriorating. He used the same logic to justify his long positions in Adobe and PayPal, both of which also sold off hard this year.
The Microsoft AI business Burry is betting will reach $700 by 2028Azure hosts OpenAI’s models and serves as the cloud backbone for a growing share of enterprise AI workloads. GitHub Copilot runs inside the daily workflows of millions of developers. Microsoft 365 Copilot, which costs $30 per user per month on top of existing enterprise licenses, has crossed 20 million commercial seats.
The contracted revenue sitting behind all of that came in at $627 billion in the most recent quarter, up 99% year over year including OpenAI. About 25% of that gets recognized over the next 12 months, up 39% from a year ago.
What retail investors should know before copying Michael Burry’s LEAP tradePeople copy Burry. They did it with the housing short. They did it with GameStop. Some made money. Many got the timing wrong and did not. LEAPs add another layer of risk that stock trades do not carry.
If Microsoft closes at $650 in December 2028, a shareholder is up roughly 80%. Burry’s options expire worthless. A strong, multi-year rally that stops short of $700 plus premium still wipes out the position. There is no partial credit.
Buying Microsoft shares directly gets you exposure to the same thesis Burry laid out, with no expiration date working against you. At around $360, the stock trades at roughly 28 times forward earnings, below where it was before the 2026 selloff. If the business keeps compounding the way the last few quarters suggest, shareholders capture that without needing a near-doubling by a specific date.
Burry said as much himself. He described $350 as a good entry for common stock buyers and framed the LEAPs as the vehicle that made sense for his own outlook and structure. That is a meaningful distinction. Retail investors who buy the options because Burry did, without matching his conviction or his ability to absorb a total loss on the premium, are taking on a very different bet than the one he made.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
Market News and Data brought to you by Benzinga APIs
LOS ANGELES, July 07, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Microsoft Corporation (“Microsoft” or “the Company”) (NASDAQ: MSFT) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company’s securities between May 1, 2025 and January 28, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before August 11, 2026.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Microsoft’s Copilot AI products suffered from problems ranging from poor user experience to capacity limitations. The Company’s AI model ranked poorly against competitors on industry benchmark tests. The Company would need to spend billions on capital expenditures related to AI including diverting hardware away from profitable business units to improve its competitive posture in artificial intelligence. The Company was incapable of converting a large percentage of Microsoft 365 users to paid Copilot subscriptions, losing market share to rivals. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Microsoft, investors suffered damages.
Join the case to recover your losses.
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.,
www.schallfirm.com
Office: 310-301-3335 [email protected]
Meta Platforms (NASDAQ: META | META Price Prediction) and Microsoft (NASDAQ: MSFT) both reported earnings on April 29, 2026, and both have been punished in 2026 despite operational strength. Meta is off 11.54% year to date; Microsoft has fared worse at down 18.9%. The market is asking which Mag 7 titan is truly the bargain.
Ad Engine Roars. Azure Backlog Balloons. Meta delivered a jaw-dropping quarter: revenue of $56.31 billion (+33.1% YoY) and EPS of $10.44 vs. $6.66 consensus. A $8.03 billion tax benefit flattered the bottom line, but the underlying ad engine is genuinely hot, with ad impressions up 19% and price per ad up 12% across a family reaching 3.56 billion daily users.
Microsoft’s headline was steadier. Revenue landed at $82.89 billion (+18.3%) with EPS of $4.27, a fourth straight beat. The real story is contracted demand. Commercial RPO nearly doubled to $627 billion, and the AI business hit a $37 billion annualized run rate, up 123% YoY. Azure alone grew 40%.
Business Driver Meta Microsoft Growth engine Ad pricing + impressions Azure + AI Copilots Visibility Spot ad market $627B contracted backlog Soft spot Reality Labs $4.03B loss PC segment down 1% One Owns the Model. One Rents the Rails. Meta is vertically integrated. Zuckerberg said the quarter marked “the release of our first model from Meta Superintelligence Labs” and reiterated a plan to “deliver personal superintelligence to billions of people.” Nadella framed Microsoft’s role differently, pointing to “cloud and AI infrastructure and solutions” for the agentic era, anchored by a restructured OpenAI stake worth roughly $135 billion.
Valuation is where the divergence bites. Meta trades at roughly 18x forward earnings with a 0.80 PEG ratio, while Microsoft carries a trailing P/E of 23. Both are spending furiously: Meta guided FY26 CapEx to $125 to $145 billion, and Microsoft’s calendar 2026 CapEx is tracking toward $190 billion.
The Next Test Is Cash Flow Under CapEx Pressure I will watch whether Meta can monetize excess AI compute by renting it out, a tactical pivot that could turn its build into near-term revenue. For Microsoft, the question is whether Azure growth can keep outrunning a CapEx line that has expanded 84% YoY. Prediction markets already reflect the strain, giving META a 75.5% probability of outvaluing OpenAI by year-end.
Why I Lean Meta Over Microsoft Right Now If you want defensible cash flow, ad pricing power, and a discount to peers, Meta is the cleaner setup for me today. Its ad monopoly funds the AI build without leaning on a partner. Microsoft remains fundamentally sound, and the 10.67% bounce this past week suggests bargain hunters agree. But if I can only own one at these prices, Meta’s combination of 30.2% ROE and a cheaper multiple wins. I would change my view if Reality Labs losses widen materially in Q2.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.
New York, New York--(Newsfile Corp. - July 7, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Microsoft Corporation (NASDAQ: MSFT) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Microsoft securities between May 1, 2025 and January 28, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/MSFT.
Microsoft Case Details
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements because they failed to disclose that:
Microsoft's Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; Microsoft's flagship proprietary AI model ranked well below competitors on a number of benchmark tests; Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit ("GPU") and central processing unit ("CPU") capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related research and development ("R&D"); and as a result of the above, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft's Copilot offerings had lost market share to rival products, a trend that was increasing.What's Next for Microsoft Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/MSFT, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Microsoft you have until August 11, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Microsoft Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Microsoft Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
Attorney advertising.
Prior results do not guarantee similar outcomes.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/301527
Source: Bronstein, Gewirtz & Grossman, LLC
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
Microsoft (NASDAQ:MSFT | MSFT Price Prediction) has quietly built a $37 billion AI business, yet the stock has done the opposite of what you would expect. Shares of Microsoft closed at $390.49, down 18.9% YTD, while Azure grew 40% and commercial backlog nearly doubled to $627 billion.
Satya Nadella runs one of the most profitable software franchises ever assembled. So why is the stock below where it started the year? And can it climb to $500 by July 2027?
The Real Reason Microsoft Is Down 18.9% This Year MSFT peaked near $520 in August 2025 and has not recovered. Shares are down 11.52% over the past month, 18.9% YTD, and 19.85% over one year. The drawdown exceeds what a beta of 1.13 would suggest.
Two forces weigh on the stock. Capital expenditure jumped 84% to $30.88 billion last quarter, with payback years away. Rising OpenAI investment losses hit $3.1 billion in Q1 FY26 versus $523 million a year earlier. Broader Magnificent 7 selling has erased trillions in mega-cap value, dragging multiples lower even as earnings accelerate.
Wall Street Sees 44% Upside. Our Model Says 28% Consensus analyst target sits at $561.11, implying roughly 44% upside. Of 56 analysts, 13 rate Strong Buy, 40 Buy, 3 Hold, and zero Sell. That is 95% bullish, zero bearish. Our model lands at $500.63 in twelve months, an upside of 28.21% with 90% confidence.
The optimistic case runs to $600.50 and the bear case sits at $444.73. Analysts anchor to peak-2025 multiples that may not snap back this year. Our lower call reflects the mega-cap dampener in the 247Factor and the reality that a $2.9 trillion company re-rates slowly. If earnings growth of 23.4% YoY holds, Wall Street eventually wins.
The Path to $500 Per Share Reaching $500 from today’s price of $390.49 requires a gain of 28%. With forward EPS of $18.89, a price of $500 implies a forward P/E of 27x. Our base case of $500.63 already implies 24x, meaning the bold target requires 2.4x of additional multiple expansion.
Microsoft has topped EPS estimates four consecutive quarters. Earnings grew 23.4% YoY, and the AI business runs at a $37 billion annualized rate, up 123% YoY. Commercial RPO of $627 billion, up 99% YoY backstops the next several years of revenue. Nadella stated directly on the last call: “Our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year.”
If Azure holds near +40% and forward EPS drifts toward $20, the multiple resets. Main risk: capex intensity compressing margins if AI monetization lags.
Where Microsoft Trades Today vs Its Earnings Power At $390.49 and forward EPS of $18.89, MSFT trades at 21x forward earnings. That is a discount to the trailing P/E of 23 and below where mega-cap software normally clears. Operating margin sits at 45.62% and ROE at 33.28%.
Shares are 11% off the 52-week low of $349.20 and 29% below the $551.05 high. The ten-year return of 763.3% shows what compounding at scale delivers. Shares trade at a discount to historical multiples for one of the highest-quality software franchises in the market.
Is $500 Realistic? Here’s My Take Reaching $500 requires a gain of 28% from $390.49. Realistic, and arguably the base case.
Three things need to go right. Azure must hold near +40% growth. Forward EPS estimates need to drift toward $20. Mega-cap multiples need to firm as the AI capex cycle proves out. What derails it: a slowdown in enterprise AI adoption combined with capex-driven margin compression. We’ve outlined the blueprint for how Microsoft could reach $500 in 2027.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about Advanced Micro Devices (AMD - Free Report) .
Advanced Micro currently has an average brokerage recommendation (ABR) of 1.43, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 46 brokerage firms. An ABR of 1.43 approximates between Strong Buy and Buy.
Of the 46 recommendations that derive the current ABR, 35 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 76.1% and 4.4% of all recommendations.
Brokerage Recommendation Trends for AMD
Check price target & stock forecast for Advanced Micro here>>>
The ABR suggests buying Advanced Micro, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRIn spite of the fact that Zacks Rank and ABR both appear on a scale from 1 to 5, they are two completely different measures.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.
Should You Invest in AMD?Looking at the earnings estimate revisions for Advanced Micro, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $7.18.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Advanced Micro. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Advanced Micro.
Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction | AMD Price Prediction) is finally getting the AI story it has been chasing for a decade. Q1 2026 revenue landed at $10.25B, up 37.85% YoY, with Data Center now the dominant engine at $5.78B (+57%).
CEO Lisa Su told investors, “Data Center now the primary driver of our revenue and earnings growth”, pointing to accelerating MI450 and Helios pipeline visibility. Shares have responded violently, up 157.77% YTD to $552.05. Can AMD hit $1,000 per share by 2031?
Why the Easy Money in AMD May Already Be Made AMD is up 300.3% over the past year and 18.37% in the last month alone. The stock now trades at a trailing P/E of 173, priced for near-perfect execution. With a beta of 2.469, any wobble in AI capex expectations gets amplified into brutal drawdowns.
Insider activity has turned notably one-directional, with 92 recent insider transactions, net selling. Add ongoing U.S. export controls on MI308 to China ($440M in FY2025 charges), and you can see why institutional money is trimming. The setup is strong. The valuation window is narrow.
Wall Street Is Behind the Stock Consensus analyst target sits at $508.31, below where AMD trades today. Ratings skew heavily bullish: 5 Strong Buys, 37 Buys, 9 Holds, and zero Sells, with 82% bullish consensus.
Our 5-year base case model lands at $708.19, a bull case of $812.33, and a bear case of $431.73. Confidence on the base call is high (0.9). With quarterly earnings growth of 91.2% YoY, the sell-side model is chasing reality. That is where the $1,000 case gets interesting.
The Path to $1,000 Per Share Reaching $1,000 from today’s price of $552.05 would require a gain of 81.1%. With forward EPS of $6.87, a $1,000 share price implies a forward P/E of 146x. Our base case of $708.19 already implies 121x, meaning the bold target requires roughly 25x of additional multiple expansion, or more realistically, EPS compounding well beyond current forward estimates.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AMD didn't make the cut. Grab the names FREE today.
AMD’s 247Factor adjustment came in at 1.127, powered by +0.049 from analyst consensus and +0.03 from earnings growth. The catalysts are named and dated: a 6-gigawatt OpenAI GPU deployment, a matching 6GW Meta commitment on MI450, a 50,000 GPU Oracle AI supercluster, and Q2 2026 guidance of roughly $11.2B revenue at 56% gross margin.
Su has said customer forecasts for MI450 and Helios are “exceeding our initial expectations”. If AMD grows earnings at even half the current 91% YoY pace over five years, forward EPS resets dramatically and the required multiple looks far less absurd. The primary risk is a broad AI capex reset that stalls hyperscaler orders.
Where AMD Trades Today vs Its Earnings Power At $552.05, AMD’s forward P/E sits at roughly 80x on $6.87 forward EPS, or 74x on the trailing forward line. That is rich versus semis broadly but not crazy given the growth acceleration.
Shares sit 13% off the 52-week high of $584.73, well above the low of $135.91. AMD has returned 10,724.51% over ten years. Today’s multiple only clears if Data Center scales the way Su’s commentary suggests.
Is $1,000 Realistic? My Verdict Reaching $1,000 by 2031 is a stretch, but a credible one. The math needs three things.
First, AMD must convert the OpenAI, Meta, and Oracle wins into recurring multi-billion-dollar Data Center revenue. Second, gross margin must hold near 56% as MI450 volumes ramp. Third, forward EPS must roughly triple to compress the required multiple into a defensible range. A hyperscaler capex reset would derail all of it. We’ve outlined the blueprint for how AMD could reach $1,000 in 2031.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AMD didn't make the cut. Grab the names FREE today.
Insiders are selling three key names involved in very different parts of the artificial intelligence (AI) value chain. This includes one of the world’s largest AI model developers, the newest AI chip developer to go public, and the market’s largest neocloud. However, insider sales can often send messy and unclear signals. So, are these latest moves simply noise, or do they tell investors something significant?
Get Alibaba Group alerts:
Alibaba Sees Spike in Sales, But Only 1 MattersAlibaba Group Today
$97.75 -0.16 (-0.16%)
As of 12:34 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$91.99▼
$192.67Dividend Yield1.05%
P/E Ratio16.05
Price Target$187.38
Alibaba Group NYSE: BABA is most well-known for its massive Chinese e-commerce platform. However, outside the United States, Alibaba is also one of the world’s largest investors in AI. The company has developed its Qwen family of models. Although not necessarily considered a “frontier model," Qwen has shown strong capabilities from an intelligence perspective.
Notably, Alibaba has recently seen a spike in insider sales. Sales came in at nearly $71 million in Q2, all in late June. Notably, none of these sales came under a predetermined 10b5-1 plan, indicating that they were discretionary in nature. However, for many of these sales, that turns out not to be the case. Other than company president Michael Evans' $68.3 million sale, insiders sold shares to pay taxes on restricted stock units. As a result, they were neither discretionary nor worrisome. However, Evans' sales are by far the largest and were discretionary. Notably, on June 29, 2026, Evans sold nearly all his held shares in two transactions, dropping his stake from 720,000 to just 28,000 shares.
Overall, this extremely large sale is moderately concerning. However, only one individual made a sale like this. Going forward, investors may want to monitor whether other insiders drop their holdings to a similar degree, which would indicate significant trepidation among insiders.
Insider Sales Eclipse $20 Million After Cerberus IPOCerebras Systems Today
CBRS
Cerebras Systems
$180.37 -11.64 (-6.06%)
As of 12:34 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$160.81▼
$386.34Price Target$299.30
Cerebras Systems NASDAQ: CBRS went public in May 2026, coming to the market with a very unique product in the AI semiconductor space. The industry recognizes the company for its “wafer-level” chips. Many semiconductors are typically cut from a single wafer during chip manufacturing. In the case of Cerebras, each chip is the size of a full wafer. The company argues that this increases efficiency and has signed deals with OpenAI and Amazon.com NASDAQ: AMZN to supply chips.
However, shares have tanked since going public, down well over than 30%. Notably, Cerebras uses a staggered IPO lock-up expiration, allowing insiders to sell shares before the typical 90 to 180-day waiting period. In turn, insiders have sold approximately $21 million worth of shares over recent weeks. None of these sales came under 10b5-1 plans. Overall, these insiders are clearly looking for liquidity even as shares have fallen significantly, a somewhat concerning sign at first glance.
It is also important to note that nearly 28 million shares held by directors, officers and nonemployee investors became eligible for sale after Cerebras’ latest earnings report. Actual reported insider sales so far, however, represent only a small fraction of that amount, indicating insiders may be showing restraint despite having a much larger potential selling window.
CoreWeave’s Sales Reach All-Time High Levels in Q2CoreWeave Today
$83.57 -2.89 (-3.35%)
As of 12:34 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$63.80▼
$160.42Price Target$135.00
CoreWeave NASDAQ: CRWV is AI’s most well-known neocloud. CoreWeave has experienced a high level of insider selling since going public in March 2025. Overall, MarketBeat has tracked nearly $8.5 billion in insider sales in the last 12 months. Notably, CoreWeave saw its insider sales drop significantly to $396 million in Q1 2026. This compares with sales above $2 billion in each of the prior two quarters, indicating that CoreWeave’s sales may be trending down. However, Q2 2026 ended up being CoreWeave’s largest quarter of insider sales yet, with the figure coming in at $3.27 billion.
The vast majority of CoreWeave’s insider sales come through 10b5-1 plans. While this is often a mitigating factor when it comes to insider sales, the company’s raw sales are so large that it doesn’t change the picture much. Insiders have shown a pattern of selling this stock in large quantities. That is a real warning sign for investors. Additionally, as shares rose by 28% in Q2 2026, insider sales soared, putting pressure on the rally as insiders sold into it. Overall, the insider sales at CoreWeave are not only bearish indicators but also create a structural overhang on appreciation.
CoreWeave Sales Raise Red Flags; Monitor Alibaba and CerebrasTaken together, CoreWeave’s insider sales are the only ones that should elicit real concern among investors at this point. The scale and persistence of the selling create a structural overhang that is difficult to ignore, even if many transactions were executed under 10b5-1 plans.
Alibaba and Cerebras still deserve monitoring, but their recent insider activity looks more isolated or restrained by comparison. For investors, the real signal is not that AI insiders are selling. It is whether those sales are routine liquidity events, post-IPO monetization or evidence that insiders see limited upside after a powerful run.
Should You Invest $1,000 in Alibaba Group Right Now?Before you consider Alibaba Group, 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 Alibaba Group wasn't on the list.
While Alibaba Group currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Discover the 10 Best High-Yield Dividend Stocks for 2026 and secure reliable income in uncertain markets. Download the report now to identify top dividend payers and avoid common yield traps.
Key Takeaways Citigroup became an LPMCL clearing member, adding Loco London settlement for four precious metals.C can now offer broader fee-based metals clearing services and strengthen institutional client offerings.Citigroup's expanded clearing role boosts its competitive position in the London bullion market. Citigroup (C - Free Report) is strengthening its presence in the global precious metals market after becoming a clearing member of London Precious Metals Clearing Limited (LPMCL). The designation enables the bank to provide Loco London settlement services for gold, silver, platinum and palladium, expanding its role in one of the world’s largest over-the-counter bullion markets.
The membership enhances Citigroup’s ability to deliver end-to-end precious metals solutions by integrating clearing and settlement with its existing commodities franchise.
Direct participation in the clearing process is expected to improve execution efficiency for institutional clients while reinforcing the bank’s market infrastructure capabilities and deepening client relationships.
While the move is not expected to have a meaningful impact on near-term earnings, it supports Citigroup’s broader strategy of expanding capital-light, fee-generating businesses.
As demand for efficient clearing, settlement and liquidity services continues to grow, the enhanced offering strengthens the bank’s competitive position and could increase its relevance among bullion dealers, financial institutions and other institutional market participants.
Citigroup’s Price Performance & Zacks RankOver the past six months, C shares have gained 19.3%, outperforming the industry’s 4.4% rise.
Image Source: Zacks Investment Research
Currently, Citigroup carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
C’s Competitive LandscapeCitigroup’s closest peers in this space are JPMorgan (JPM - Free Report) and Goldman Sachs (GS - Free Report) , both of which have well-established institutional commodities franchises.
JPM is a long-standing participant in the London bullion market, offering precious metals trading, clearing, custody and vaulting services, whereas Goldman Sachs is a leading dealer in precious metals, providing trading, financing and risk-management solutions to institutional clients worldwide.
Citigroup’s entry into LPMCL strengthens its ability to compete more effectively with these Wall Street rivals by expanding its precious metals clearing capabilities and enhancing its suite of fee-based market services.
The tech sector has been one of the hottest for growth investors, as it has a long history of outperforming the S&P 500. For instance, the State Street Technology Select Sector SPDR ETF has delivered roughly 140% in gains over the past five years, while the S&P 500 hasn't even doubled over the same stretch. Investors can get more nuanced in the tech industry with funds like the iShares Semiconductor ETF, which has almost quadrupled over the past five years.
But the performance of the broader tech industry compared to indexes explains why many investors prefer hunting for good picks in this sector. You can start your search with these promising tech stocks if you have $1,000 ready to invest.
Image source: Getty Images.
1. Nvidia Nvidia (NVDA +1.21%) is the largest AI chipmaker, and the competition isn't close. The company generates more revenue in a quarter than most of its competitors earn in an entire year. Even after years of strong growth, Nvidia still has the pedal to the metal.
The AI leader reported 85% year-over-year revenue growth in its fiscal 2027 first quarter, and its Q2 FY27 guidance implies more than 10% sequential growth.
It isn't just AI models like ChatGPT that need all those chips. Nvidia CEO Jensen Huang told shareholders that agentic AI is just getting started and is "scaling rapidly across companies and industries." Grand View Research projects a meaningful 46.2% CAGR for the enterprise agentic AI market through 2030.
Today's Change
(
1.21
%) $
2.37
Current Price
$
197.92
Physical robots can usher in the next wave of growth for Nvidia, and the company is already prepared for that opportunity. Halos for Robotics, Nvidia's full-stack, open robotics safety system, was recently touted as the first of its kind in a June press release. Nvidia intends to be the catalyst behind every AI innovation, which can position the stock for meaningful long-term growth.
2. Microsoft Microsoft (MSFT +1.94%) is another AI winner, but a 21% decline over the past year doesn't match up with its fundamental gains. The drop has resulted in a 23 P/E ratio as profits and sales continue to surge.
The tech giant recently delivered 18% year-over-year revenue growth in its fiscal 2026 third quarter. Operating income rose 20% year over year, with Microsoft Cloud doing the heavy lifting. Microsoft CEO Satya Nadella also touted the company's AI business surpassing $37 billion in annual recurring revenue, more than doubling year over year.
Today's Change
(
1.94
%) $
7.52
Current Price
$
394.26
Total cloud revenue reached $54.5 billion, up 29% year over year. That's almost two-thirds of the company's total revenue. As the cloud platform continues to gain market share, Microsoft's overall revenue growth rates should continue to accelerate.
The AI tailwind should extend for multiple years, and Microsoft has positioned itself well. Just because some investors are selling their shares doesn't make Microsoft a bad investment. The mismatch between Microsoft's declining stock price and strengthening fundamentals presents a buying opportunity.
Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft, Nvidia, and iShares Trust - iShares Semiconductor ETF. The Motley Fool has a disclosure policy.
YieldMax NVDA Option Income Strategy ETF (NYSEARCA:NVDY) monetizes NVIDIA‘s (NASDAQ:NVDA | NVDA Price Prediction) volatility through a synthetic covered-call strategy, converting option premiums into weekly cash distributions. The fund once ranked among the highest-yielding listed ETFs, but the critical question is whether those distributions represent durable income or a slow-motion return of your own capital. The answer, based on the May 2026 fact sheet and recent distribution data, is more nuanced than the headline yield suggests.
How NVDY Manufactures Its Yield NVDY holds a small slice of NVIDIA stock (11.5% of net assets) and uses options to synthetically replicate exposure, then sells short-dated calls at strikes near NVIDIA’s spot price to harvest premium. The rest of the portfolio, over 80% in Treasury Bills and a First American Government Obligations money market position, sits as collateral and earns short-term interest.
The income you receive blends option premium (which scales with implied volatility) and T-Bill yield. When NVIDIA trades around 40 vol, premiums are rich and distributions swell. When volatility compresses or NVIDIA rallies past the short strike, the math turns against holders. NVDY caps upside at the sold strike, meaning if NVIDIA rises 15% in a month, the fund captures 3% to 5% while the call is assigned or rolled at a loss.
The Distribution Trend Tells the Real Story NVDY’s payout history is the single most important safety signal. In March 2024, the fund paid $2.62 per share in a single month. By mid-2024, monthly distributions were still running above $1.00. By the July 2, 2026 ex-date, and the weekly payment was $0.0984, with recent weeks clustering between $0.08 and $0.15. Even annualized across 52 weekly payments, the current run-rate falls well short of the 2024 pace.
That decline reflects two forces. NVIDIA’s realized volatility has moderated as the stock matured into a mega-cap, compressing the premiums NVDY can harvest. Meanwhile, the fund had to fund several distributions during periods when NVIDIA rallied through the short strike, which erodes NAV to make the payment whole. NAV erosion is the covered-call ETF‘s silent tax: the yield looks fine on paper, but the price per share drifts lower over time.
Read: Are you ahead, or behind on retirement? SmartAsset's free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don't waste another minute; learn more here.
Total Return, Not Just Yield NVIDIA itself returned roughly 24% over the past year and more than 854% over five years. NVDY, by design, cannot match that because every meaningful upside move is capped. Investors who bought NVDY at inception seeking “Nvidia income” have collected large distributions but watched share price decline while NVIDIA rallied. The tradeoff is real cash today for surrendered compounding tomorrow.
The 1.09% expense ratio compounds that drag. On $1.37 billion in net assets, that is meaningful friction versus simply holding Nvidia and selling covered calls in a personal account.
The Verdict The distribution mechanics work. The Treasury collateral is safe, and premium income will keep flowing as long as NVIDIA trades with reasonable volatility. What is at risk is the size of the check. Distributions have already fallen sharply from 2024 highs, and there is no structural reason to expect a return to those levels absent a fresh volatility regime.
For investors who understand they are trading upside for cash flow and are comfortable with a slowly eroding NAV, NVDY works as an income sleeve. For anyone treating it as a proxy for owning NVIDIA, the past year has been an expensive lesson. A lower-yielding alternative such as a broad dividend growth ETF, or simply holding NVIDIA and selling covered calls selectively, will usually produce better total returns.
If You’ve Been Thinking About Retirement, Pay Attention (sponsor) Retirement planning doesn’t have to feel overwhelming. The key is finding expert guidance, and SmartAsset’s simple quiz makes it easier than ever for you to connect with a vetted financial advisor. Here’s how:
Answer a Few Simple Questions.
Get Matched with Vetted Advisors
Choose Your Fit
Why wait? Start building the retirement you’ve always dreamed of. Get started today! (sponsor)
I keep hitting the buy button on NVIDIA (NASDAQ:NVDA | NVDA Price Prediction), and after the June pullback I hit it again. I bought near $225 in May, I bought near $212 in June, and I added last week close to $194.83. The story that got me into this position keeps getting louder.
Here is what pulls me back every time. NVIDIA sells the picks and shovels for what CEO Jensen Huang calls “the buildout of AI factories, the largest infrastructure expansion in human history.” The checks his customers are writing agree with him, and the numbers behind those checks are why I own more shares this week than I did last month.
The Valuation Has Quietly Compressed Forward earnings sit near 20x, and the trailing multiple prints at 30. For a business that just delivered 85.2% year-over-year revenue growth to $81.61 billion at a 75.0% non-GAAP gross margin, that reads like a mature-industrial multiple on a platform running every frontier AI model. Shares are down 12.46% over the past month and sit 28% below the 52-week high of $236.26, even as Q1 non-GAAP EPS came in at $1.87 against a $1.7738 consensus.
The Cash Machine Behind The Buyback Q1 free cash flow was $48.554 billion, roughly 59.5% of revenue turning directly into cash. Full-year FY2026 free cash flow hit $96.575 billion, up 58.7%. Management returned $41.1 billion to shareholders in FY2026 and another $20.0 billion in Q1, then approved an additional $80.0 billion buyback authorization on top of $38.5 billion still remaining. The dividend jumped from $0.01 to $0.25, a 25x raise declared May 18, 2026. Owners are getting paid while Blackwell 300, Vera Rubin, and BlueField-4 get funded out of the same wallet.
The Demand Book Is Booked The $119.0 billion in supply-related commitments that spooks the bears reads differently when you know the customer list. Meta committed to millions of Blackwell and Rubin GPUs. OpenAI signed for at least 10 GW of NVIDIA systems. Anthropic is scaling on 1 GW of initial capacity. CoreWeave is building 5+ GW of AI factories by 2030. Sovereign deals with the UK, South Korea, and Germany layer on top. Q2 FY27 guidance calls for $91.0 billion in revenue at a 75.0% gross margin, and that number excludes any China Data Center compute.
The Real Risk China exposure is real. H20 Data Center compute revenue from China is zero in the guide, versus $4.6 billion in the year-ago quarter. A cash tax step-up hits in Q2. And $119.0 billion in supply commitments cuts both ways if hyperscaler capex ever cools. I sat with all of it. My answer is that Data Center networking revenue grew 199% year over year, hyperscalers are roughly half of Data Center revenue with sovereign, enterprise, and industrial buyers filling the other half, and multi-year cloud service commitments have grown to $30.0 billion. The book keeps deepening.
Why The Buy Button Stays Warm Analyst consensus sits at a $301.62 price target with 58 buys against one sell. I focus on the free cash flow, the platform, and the runway of a company that just went from a penny dividend to a quarter and told me another $80.0 billion of buybacks is coming. When the market sells the picks-and-shovels vendor of the biggest capex cycle of my lifetime at roughly 20x forward earnings, I keep buying.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
SummaryNvidia Corporation is evolving beyond GPUs, building a diversified AI ecosystem spanning chips, platforms, and software/services.NVDA’s expanding product suite increases TAM, raises switching costs, and strengthens moats, mitigating some competitive risks from hyperscalers.Despite secular AI tailwinds, cyclicality remains a risk, especially if hyperscaler CapEx slows or verticalization accelerates.At 21x forward earnings, NVDA’s valuation appears attractive versus peers, with potential for significant revenue growth and shareholder returns. Robert Way/iStock Editorial via Getty Images
I believe many people in the industry value Nvidia Corporation (NVDA) as if the company were still a GPU company. And as much as this is mostly a truth (yet), this is changing gradually, with the
2.82K Followers
Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMZN, GOOGL, NVDA 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.
Nvidia stock NVDA fell on Tuesday after a report that Chinese artificial intelligence startup DeepSeek is developing its own inference chip added to investor concerns that major AI customers are increasingly looking to reduce their dependence on Nvidia's hardware.
Shares of the chipmaker dropped 1.9% to $191.82 in early trading. If the decline holds, the stock would close at its lowest level since April.
The latest pressure on Nvidia followed a Reuters report that DeepSeek is developing its own artificial intelligence chip, citing people familiar with the matter.
According to the report, the processor is designed for inference—the stage of AI computing in which trained models generate responses to users—rather than for training new models.
Reuters reported that the effort remains in its early stages, with DeepSeek holding discussions with chip-design companies, foundries, and memory suppliers. The initiative reportedly began about a year ago.
If successful, the move would reduce DeepSeek's reliance on external suppliers, including Nvidia and China's Huawei Technologies.
The report said DeepSeek has used both Nvidia and Huawei chips to train and deploy its AI models.
DeepSeek previously said the foundation model behind its R1 reasoning model was trained using Nvidia's H800 processors, chips designed specifically for the Chinese market before US export restrictions barred their sale.
The company has since relied increasingly on Huawei hardware.
In April, DeepSeek released its V4 model adapted for Huawei's Ascend chips, while Huawei said its processors were used in part of the training of DeepSeek's V4-Flash model.
DeepSeek's reported push into chip development comes as Chinese AI companies face continued restrictions on access to Nvidia's most advanced processors under US export controls.
The limitations have encouraged domestic technology companies to pursue alternative hardware solutions, while Beijing has continued encouraging the development of a domestic AI semiconductor ecosystem.
Huawei has emerged as one of the largest beneficiaries of those restrictions.
Huawei is now estimated to supply around half of China's estimated $50 billion domestic AI chip market.
However, that position is increasingly being challenged as companies, including Alibaba and Baidu, develop their own AI processors.
Even if DeepSeek eventually deploys proprietary inference chips, the immediate business impact on Nvidia may be limited.
China has become a progressively smaller contributor to Nvidia's revenue following successive rounds of US export restrictions.
Although the development is unlikely to materially affect Nvidia's near-term financial results, investors may see it as another sign of mounting competitive pressure.
Large AI developers have increasingly sought greater control over their computing infrastructure by designing custom silicon tailored to their own workloads.
Major Nvidia customers, including Microsoft and Meta Platforms, have already been investing in internally developed AI chips as they seek to lower infrastructure costs associated with expanding data-center capacity.
The trend has also spread to leading AI model developers. Last month, OpenAI unveiled Jalapeño, its first custom inference chip developed with Broadcom, while Anthropic has reportedly been evaluating the development of its own processors.
Chinese artificial intelligence startup DeepSeek is developing its own semiconductor for AI computing, according to a Reuters report, as the company looks to reduce its dependence on external chip suppliers, including Nvidia Corp (NASDAQ:NVDA, XETRA:NVD) and Huawei.
The chip is being designed primarily for inference workloads, which involve running already-trained AI models to generate responses and complete tasks.
Reuters reported that DeepSeek’s focus on inference reflects growing demand for hardware optimized for deploying AI applications rather than training large language models.
Specialized inference chips can offer lower costs and improved power efficiency compared with traditional graphics processing units (GPUs), making them an increasingly important area of development as AI adoption expands.
According to Reuters, DeepSeek has been working on the chip project for about a year and has held discussions with chip design firms, semiconductor manufacturers and memory suppliers. The company has also begun hiring engineers to support the effort, the report added.
The move comes as Chinese technology companies seek to develop domestic alternatives amid restrictions on access to advanced foreign semiconductors.
After initially falling on the report, shares of Nvidia were little changed at about $195 in the early afternoon on Tuesday.
The Nasdaq fell 2.28%, while the S&P 500 declined 0.68%. Industrials also lagged, dropping about 2.5%, adding to the pressure on airline stocks.
Analyst sentiment remained constructive, with Susquehanna analyst Christopher Stathoulopoulos raising his price forecast on American Airlines from $16 to $25 while maintaining a Positive rating.
The analyst believes these valuation levels appropriately reflect AAL’s progress in expanding premium offerings and addressing domestic network concerns, while factoring in near-term macroeconomic, geopolitical, and balance sheet risks.
American Airlines Technical AnalysisThe stock continues to trade above its 20-day, 50-day, 100-day and 200-day simple moving averages, suggesting the intermediate-term uptrend remains intact.
Momentum indicators also remain constructive. The MACD remains above its signal line, indicating buying momentum continues despite Tuesday’s pullback.
Investors will watch whether shares can hold support near the $15 level if selling pressure continues. The stock reached a 52-week high of $18.79 in July after forming a bullish “golden cross” in June, when the 50-day moving average moved above the 200-day moving average.
Earnings And Analyst OutlookAmerican Airlines is expected to report second-quarter results on July 23. Wall Street expects earnings of 4 cents a share, down from 95 cents a year earlier, on revenue of $16.68 billion, up from $14.40 billion.
The stock carries a consensus Hold rating with an average analyst price forecast of $19.47. On Tuesday, Susquehanna raised its price forecast to $25 while maintaining a Positive rating. Earlier this month, BMO Capital raised its forecast to $19.50 with a Market Perform rating, and TD Cowen increased its forecast to $24 while reiterating its Buy rating.
American Airlines ETF ExposureAmerican Airlines is a significant holding in several aviation-focused exchange-traded funds, including the Themes Airlines ETF (AIRL) and the U.S. Global Jets ETF (JETS). As a result, fund inflows and outflows can influence trading activity in the stock.
AAL Stock Price Activity: American Airlines Group shares were down 2.03% at $17.39 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium includes access to the Zacks Style Scores as well.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreWhat if you like to use all three types of investing? The VGM Score is a combination of all Style Scores, making it one of the most comprehensive indicators to use with the Zacks Rank. It rates each stock on their combined weighted styles, which helps narrow down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To maximize your returns, you want to buy stocks with the highest probability of success. This means picking stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you find yourself looking at stocks with a #3 (Hold) rank, make sure they have Scores of A or B as well to ensure as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
Here's an example: a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one with Style Scores of A and B, still has a downward-trending earnings outlook, and a bigger chance its share price will decrease too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: AT&T (T - Free Report) Based in Dallas, TX, AT&T Inc. is the second largest wireless service provider in North America and one of the world’s leading communications service carriers. Through its subsidiaries and affiliates, the company offers a wide range of communication and business solutions that include wireless, local exchange, long-distance, data/broadband and Internet, video, managed networking, wholesale and cloud-based services.
T is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 8.93; value investors should take notice.
One analyst revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.00 to $2.30 per share. T boasts an average earnings surprise of +5.2%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, T should be on investors' short list.
ST. PAUL, Minn., July 7, 2026 /PRNewswire/ -- 3M (NYSE: MMM) today announced the following investor event:
Second-quarter 2026 earnings conference call on Tuesday, July 21, 2026, at 8 a.m. CT. This event will be webcast live and a replay will be available on 3M's Investor Relations website at http://investors.3M.com.
About 3M
3M (NYSE: MMM) is focused on transforming industries around the world by applying science and creating innovative, customer-focused solutions. Our multi-disciplinary team is working to solve tough customer problems by leveraging diverse technology platforms, differentiated capabilities, global footprint, and operational excellence. Discover how 3M is shaping the future at 3M.com/news.
Shares of SpaceX (NASDAQ:SPCX) are down 6% to $151 and change in midday trading Tuesday, an unusual response given the flood of bullish analyst initiations that hit the tape today and the company’s addition to the NASDAQ 100. The pullback appears to be dragging the broader space complex with it.
AST SpaceMobile (NASDAQ:ASTS) stock is off 6% to $76, while Virgin Galactic (NYSE:SPCE) shares are down 5% to $2.55. Rocket Lab (NASDAQ:RKLB | RKLB Price Prediction) stock is down 10%, tracking sympathetic weakness across launch, satellite, and orbital services names.
The tape looks contradictory on SpaceX. The bullish catalysts are real, yet the stock is falling as investors weigh an approaching insider lockup schedule against a broader risk-off move hitting tech, chips, memory, and EV names today.
Bullish Initiations Collide With Lockup Overhang SpaceX went public on June 29, and formal coverage launched today with more than a dozen firms initiating, overwhelmingly at Buy, Outperform, or Overweight ratings. Price targets clustered in the $190 to $300 range. Bullish highlights included Morgan Stanley at Overweight and a $300 target and Raymond James at Strong Buy with an $800 target.
Raymond James cited a total addressable market approaching $30 trillion. The lone skeptic was MoffettNathanson, which came out Neutral with a $131 target, arguing there is “no credible financial model” to support a roughly $2 trillion valuation. That wide target dispersion signals genuine disagreement about how to value SpaceX today.
SpaceX also joined the NASDAQ 100 today under revised index rules, forcing passive funds to buy. JPMorgan estimated around $4.3 billion of index-driven demand. SpaceX stock is shrugging off that technical tailwind in real time.
The weight on SpaceX shares appears to be the coming share supply. Insider lockups begin expiring on a staggered schedule in late July, with 20% of locked shares freeing up after Q2 results, followed by smaller tranches of 7% each through August, September, and October. The 180-day batch clears in December.
Another 10% of the locked pool unlocks if SpaceX stock trades 30% above its $135 IPO price, a $175.50 trigger. SpaceX CEO Elon Musk’s 6.4 billion shares stay locked until June 2027.
This is the first real test of insider appetite at a roughly $2 trillion valuation. The weakness extends well beyond SpaceX.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AST SpaceMobile didn't make the cut. Grab the names FREE today.
Space Peers Fall in Sympathy AST SpaceMobile shares are under pressure today. The company’s Q1 2026 report showed revenue of $14.73 million missing the $36.58 million consensus, and the company remains deeply pre-profit despite nearly 60 mobile network operator partners covering more than 3 billion subscribers.
Virgin Galactic sits in a similar bucket. Virgin Galactic posted Q1 EPS of -$0.81, beating the -$0.94 estimate, and CEO Michael Colglazier said flight testing remains on track for Q3 2026 with a first commercial spaceflight targeted in Q4 2026. Virgin Galactic stock has been volatile all year and trades under $3 for good reason.
Rocket Lab is the closest thing to a fundamental story in this basket. The company’s Q1 2026 revenue rose 64% year over year (YoY) to $200.4 million, backlog swelled to $2.2 billion, and CEO Peter Beck highlighted the Space Based Interceptor selection under the Golden Dome program with Raytheon. Rocket Lab stock is still lower today, dragged by the same risk-off wave.
For diversified exposure, the Procure Space ETF (NASDAQ:UFO) is the purest revenue-weighted way to play the sector. Top holdings include several pure-play space names across satellite communications and launch. Investors can note that the ETF and its underlying names carry outsized volatility, which is on full display today.
What to Watch The next real test for SpaceX stock arrives in late July, when the company’s Q2 2026 results land and the first tranche of insider shares unlocks. Any signal of heavy insider selling into that window can weigh on SpaceX shares well before the December cliff.
The bulls have three legs: the wave of Buy ratings, the NASDAQ 100 passive bid, and SpaceX’s launch, Starlink, and AI-infrastructure optionality. The bears counter with the lockup calendar, MoffettNathanson’s contested valuation math, and the speculative, pre-profit nature of the smaller space names. A single session doesn’t change the long-term thesis in either direction.
Investors sizing up their space-stock exposure should consider keeping their position sizes modest given the volatility on display. The July earnings-and-lockup window is the near-term catalyst that could reset how the market prices SpaceX stock and the broader space complex.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AST SpaceMobile didn't make the cut. Grab the names FREE today.
Netflix stock is trading near recent lows. What’s next for NFLX stock? What Is Driving Netflix’s Stock Momentum?A Floyd Mayweather–Manny Pacquiao rematch penciled in for Sept. 19 has also been linked to the platform, though that stream remains in limbo due to a lawsuit seeking to block the event.
Netflix is also benefiting from a sentiment tailwind after it was flagged as a "final trade" pick on CNBC’s Halftime Report Monday, keeping the name in front of momentum traders and dip-buying desks. The call echoed Bank of America’s Buy stance and price target, which bulls point to as potential upside if the broader tape stabilizes.
The same segment also placed Netflix in a "quality megacap" basket alongside Alphabet. Morgan Stanley raised its Alphabet price target to $415 from $375 on June 30, offering a useful peer benchmark for Netflix because big-cap advertising and subscription names often get bought together during risk-off rotations.
Critical Technical Levels for NFLX to WatchIn the near term, Netflix is basically sitting on its short-term trend gauges: the stock is around the 20-day averages (20-day SMA at $76.99 and 20-day EMA at $77.08), which often turns the chart into a "decision point" where small moves can snowball. The bigger-picture trend is still heavy, with shares 7.9% below the 50-day SMA ($83.77) and 19.5% below the 200-day SMA ($95.88).
MACD is the cleaner momentum tell right now: it’s above its signal line and the histogram is positive, which points to downside pressure easing versus the prior downswing. Put simply, when MACD is above the signal line, momentum is improving even if price hasn’t fully reclaimed the longer-term trend.
The longer-term structure still argues for caution: the 20-day SMA is below the 50-day SMA (bearish), and the 50-day SMA is below the 200-day SMA—confirming the "death cross" that set in during December 2025. Zooming out, the stock is down 41.05% over the past 12 months, with a recent swing high in April and a swing low in June that also tagged the 52-week low zone.
Key Resistance: $91.50 — a rebound "stall zone" that lines up near the broader reclaim area traders often associate with getting back above the 50-day trend. Key Support: $71.00 — a nearby floor tied closely to the $70.86 52-week low from June. How Netflix Operates in the Streaming MarketNetflix’s business is still pretty simple: it runs one global streaming service, with more than 300 million subscribers worldwide and exposure to most of the global population outside of China. Historically, it’s been built around on-demand series, movies, and documentaries rather than a steady calendar of live programming.
That’s why the live-sports push matters for the current tape—sports can create appointment viewing and repeat engagement in a way that a library model doesn’t always deliver. Netflix also added ad-supported plans in 2022, giving it a second revenue lever (advertising) alongside subscription fees.
Netflix Earnings Preview for July 2026The countdown is on: NetFlix Inc is set to report earnings on July 16, 2026 (confirmed).
EPS Estimate: 79 cents (Up from 72 cents YoY) Revenue Estimate: $12.58 Billion (Up from $11.08 Billion YoY) Valuation: P/E of 24.5x (Suggests fair valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $113.36. Recent analyst moves include:
B of A Securities: Buy (Maintains Target to $125.00) (May 18) Guggenheim: Buy (Maintains Target to $120.00) (May 15) Piper Sandler: Overweight (Raises Target to $115.00) (April 17) Netflix Benzinga Edge Rankings OverviewBelow is the Benzinga Edge scorecard for NetFlix, highlighting its strengths and weaknesses compared to the broader market:
The Verdict: Netflix’s Benzinga Edge signal reveals a growth-and-quality-heavy profile with very weak momentum, which fits a stock trying to bottom after a longer slide. For longer-term bulls, the setup improves if price can start reclaiming mid-term moving averages, while risk stays elevated if it revisits the low-$70s support zone.
NFLX Stock Price Activity Tuesday MorningNFLX Stock Price Activity: Netflix shares were up 1.76% at $77.36 Tuesday morning, according to Benzinga Pro data.
Image: Shutterstock
Market News and Data brought to you by Benzinga APIs
Netflix has attempted to debut a number of new shows in 2026, but one has risen above the rest. That would be I Will Find You, the new Harlan Coben novel adaptation, which has just hit a viewership milestone for Netflix.
I Will Find You is officially the biggest Netflix original series debut of 2026, now more than halfway through the year, with 24 million views in its first four days. It was planted at #1 on the service for a spell and remains in the top 2 or 3 daily.
I Will Find You’s achievement here is notable because Netflix has struggled to find breakout, new IP mega-hits as of late, its biggest series being ones that started years ago and are still ongoing. Though despite this figure, I Will Find You is still not close to any all-time records, and it is a miniseries that will not grab viewers for a second season. Rather, Netflix will just move on to the next Harlan Coben adaptation instead.
What was I Will Find You competing against this year? That includes shows like Run Away (more Harlan Coben), Man on Fire, Something Very Bad is Going to Happen, Nemesis, Strip Law, The Boroughs, Detective Hole, Unchosen, Lord of the Flies, Finding Her Edge, Vladimir and more.
His and Hers
Netflix
MORE FOR YOU
One notable series in the lineup is His and Hers, another one-off murder mystery based on a book by Alice Feeney. Interestingly, I Will Find You had a stronger start, but His and Hers had tremendous legs, staying at #1 on Netflix and high in its top 10 list for ages. It did so well that it actually made the list of Netflix’s 10 most-watched English-language series ever with 98 million views. It’s the first new show on that list since the Emmy-sweeping Adolescence, though it’s unlikely to nab any awards. And again, no second season.
As for I Will Find You, its current top 10 trajectory does not indicate it will compete with His and Hers over the long term. Both series have middling reviews from both critics and audiences, but that has not translated into a lack of viewership. Here’s what I Will Find You is about:
“A father imprisoned for his son's murder receives evidence suggesting his child may be alive, compelling him to escape and uncover the truth.”It stars Avatar’s Sam Worthington and Severance’s Britt Lower, hopping over from Apple TV. This is Us’s Milo Ventimiglia is also on board. It is probably worth checking out to see why it’s so widely viewed, but if you’re expecting something mind-blowing, you may end up disappointed.
Follow me on Twitter, YouTube, and Instagram.
Pick up my sci-fi novels the Herokiller series and The Earthborn Trilogy.
It's not the holiday shopping season, but it's easy to see why Netflix (NFLX +0.71%) could feel like Christmas in July right now. Shares of the streaming video pioneer have fallen out of favor, a contrast to the overall rising market.
This could be an opportunity as we head into earnings season. With its highly anticipated second-quarter results now less than 10 days away, Netflix's historically cheap valuation, and several bidding wars for smaller media platforms over the past two years, it could be a good time to binge-invest in the leading premium player.
Image source: Getty Images.
1. Love Is Blind: Earnings season is here There is no single quarterly event that can move a stock as consistently as its earnings release, and investors have been circling the afternoon of July 16 on their calendars for weeks. Netflix will be one of the first consumer-facing businesses to report fresh financials this earnings season, and expectations are modest.
The $12.574 billion that Netflix was modeling for Q2 revenue back in April is a 13.5% increase, its weakest top-line move in more than a year. The $3.327 billion that Netflix sees on the bottom line represents an even more disappointing 6.5% uptick. Slowing revenue growth and contracting operating and net income margins aren't a good look for a company.
The silver lining here is that the stock already took a hit for that uninspiring outlook three months ago. Netflix shares tumbled 10% the day after the company posted weak guidance in mid-April. In a marketplace where tech stocks have been rallying over the past three months, Netflix has traded nearly 30% lower since announcing its poorly received first-quarter results.
Pessimism is already the default setting heading into this critical financial update. When Netflix kept its full-year guidance unchanged after exceeding its earlier first-quarter outlook, it implied a downward revision for the remaining nine months of the year. Things can get worse, but in this depressed case, even holding the line later this month would be worth a victory lap.
Today's Change
(
0.71
%) $
0.54
Current Price
$
76.56
2. Stranger Things: The stock is cheaper than you think Netflix stock hasn't just been a dud over the past three months. The shares are down 41% over the past year. The performance looks even worse when you consider the market has risen 20% in that time.
Stocks don't lose ground in an ascending market by accident. Netflix has made some mistakes. However, put yourself in today's shoes -- instead of kicking yourself for owning the shares over the past painful year -- and the fresh take looks more attractive than it has been in a long time.
Netflix has continued to grow, even as its stock has gone in the other direction. Netflix is now trading at 21 times this year's earnings, and less than 20 times next year's analyst profit target. These might not seem like low multiples, but they are historically cheap. Netflix is trading near its lowest forward and year-ahead P/E ratios in years.
3. Squid Game: Content is worth more than ever now Tuesday marks the two-year anniversary of the acquisition announcement that would result in the formation of Paramount Skydance. Skydance paying up for the iconic media company wasn't a one-time event. The market has seen two more premium-priced deals for platforms with large streaming audiences since that deal closed last summer.
Netflix isn't likely to be the fourth company to be bought at a premium. It's too big to be bought. However, Netflix has already been a winner of the feeding frenzy. It walked away with a $2.8 billion buyout termination fee earlier this year after an acquisition deal it had struck was wrestled away by none other than Paramount Skydance.
What matters here is that valuations have been reset. Content is king again. If you command a large streaming audience -- and no one has a larger premium audience than Netflix with its roughly 325 million paying households -- you own the gateway to connected TV opportunities and media exposure. Netflix is worth more now than ever, even if the stock chart suggests something else entirely. That's not a problem. That's an opportunity.
With Netflix (NASDAQ:NFLX | NFLX Price Prediction) reporting Q2 2026 earnings on July 16, the stock is at a crossroads. Shares trade at $77.65, down 39.57% over the past year, yet the streaming leader raised full-year free cash flow guidance to roughly $12.5 billion.
Our 24/7 Wall St. price target for Netflix is $285.62, implying 267.82% upside over the next 12 months. Our model rates the setup buy with a confidence level of 90%.
24/7 Wall St. Price Target Summary Metric Value Current Price $77.65 24/7 Wall St. Price Target $285.62 Upside 267.82% Recommendation BUY Confidence Level 90% A Brutal Year, A Different Setup Netflix shares fell nearly in half from the $129.50 52-week high, bottoming at $70.86 before recovering. Year-to-date, NFLX is down 17.18%, though it rose 9.52% last week on news of an AI advertising partnership with Omnicom Media Group.
Q1 2026 revenue landed at $12.25 billion, up 16.2% year over year, with EPS of $1.23 against a $1.32 estimate. Net income surged 82.77%, inflated by a $2.8 billion Warner Bros. termination fee. Free cash flow jumped 91.44% to $5.09 billion. Management reaffirmed FY revenue guidance of $50.7 billion to $51.7 billion and Q2 revenue guidance of $12.574 billion.
The Case for $299 and Higher Bulls point to a widening moat in monetization. Ad revenue is tracking toward roughly $3 billion in 2026, double the prior year, and ad-supported tiers now drive more than 60% of sign-ups in ad markets. Advertiser count jumped 70% YoY to 4,000-plus clients.
Operating margin guidance stepped up to 31.5%, with Q2 targeting 32.6%. Live events (Tyson Fury vs. Anthony Joshua, MLB, NFL), gaming, and international expansion at under 45% global broadband penetration extend the runway.
Our bull case scenario points to $299.13, and the Wall Street consensus target of $113.94 implies healthy near-term upside from 37 Buy and Strong Buy ratings against 13 Holds and zero Sells.
What Could Go Wrong NFLX missed on the bottom line in two of the last four quarters, including a 15.71% miss in Q3 2025 and a 6.82% miss in Q1 2026. Historically, Netflix misses trigger a 9.89% single-day drop. Reddit sentiment cratered from 82 to 28 in the past week on concerns that top shows are losing 30% to 70% of their audience between seasons.
Insider activity has been net selling across 110 recent transactions. Polymarket traders assign only a 6.6% probability of NFLX reaching $100 probability in July.
The Q1 EPS miss reflects heavy content amortization that management says peaks in Q2 before decelerating. The Brazilian tax charge of roughly $619 million that hit Q3 2025 was non-recurring. Bear case downside from our model points to $219.07, still well above the current price.
What to Watch Into Earnings The 24/7 Wall St. price target sits at $285.62 with 90% confidence and a buy rating. Forward earnings power tips the scale. With forward EPS of $17.21 against a trailing P/E of 25, the risk-reward skews sharply positive after the 39.57% drawdown.
The setup strengthens if the July 16 report reaffirms the $12.5 billion free cash flow guide and shows ad revenue on pace to double. The thesis weakens if operating margin slips below 31.5% or if subscriber growth in APAC and LATAM decelerates from Q1’s 20% and 19% pace.
Year 24/7 Wall St. Price Target 2026 $134.04 2027 $285.62 2028 N/A 2029 N/A 2030 N/A These projections assume Netflix executes on ad-tier scaling, live events, and international penetration, with our 5-year base case pointing to $3,369.45 by July 2031. Downside could result from content amortization pressure, FX volatility, or competitive escalation from Alphabet, Amazon, Disney, or TikTok.
Key Takeaways MA is expanding beyond cards with multi-rail payments across accounts, real-time networks and blockchain.MA's Q1 2026 net revenues grew 16%, with cross-border volume up 13% and services revenues up 22%.Mastercard is expanding Agent Pay and Mastercard Move to support AI, cross-border and real-time payments. Mastercard Incorporated (MA - Free Report) is steadily evolving from a card network into a multi-rail payments company, enabling transactions across cards, bank accounts, real-time payment networks and blockchain-based rails. The strategy allows consumers, businesses and financial institutions to move money through the most suitable payment method while remaining within MA's ecosystem. As payment preferences continue to evolve, this broader infrastructure is helping the company extend its role beyond traditional card payments.
Mastercard has accelerated this transformation with several recent initiatives. The company launched Agent Pay to support secure payments initiated by AI agents and added Verifiable Intent to authenticate AI-driven transactions. It continues expanding Mastercard Move, a unified platform that connects cross-border, domestic and real-time capabilities, making its network more interoperable and adaptable to diverse money-movement needs.
The strategy is also translating into solid financial performance. In the first quarter of 2026, MA’s net revenues rose 16% year over year, while cross-border volume increased 13% on a local-currency basis. Value-added services and solutions net revenues climbed 22%, highlighting the growing contribution of services and newer payment capabilities alongside the company's core card business.
Rather than relying solely on card transactions, Mastercard is building infrastructure that supports real-time payments, account-to-account transfers, AI-enabled commerce and regulated stablecoin settlement. As businesses seek faster, more flexible and interoperable ways to move money globally, this multi-rail approach positions the company to deepen its role in cross-border and domestic payment flows and to expand its addressable market.
How Are Competitors Faring?Some of MA’s competitors in the payments space include Visa Inc. (V - Free Report) and American Express Company (AXP - Free Report) .
Visa is pursuing a similar multi-rail strategy by expanding Visa Direct, account-to-account payments and stablecoin settlement capabilities. In the second quarter of fiscal 2026, V’s total cross-border volume increased 12% year over year, while value-added services revenues grew 27%, reflecting strong demand for diversified payment solutions.
American Express is strengthening its payments ecosystem by expanding tokenization, digital wallet integrations and commercial payment capabilities. AXP is also leveraging AI to enhance customer experiences and payment security. In the first quarter of 2026, network volumes grew 11% year over year to $486.3 billion, supported by resilient consumer and business spending.
Mastercard’s Price Performance, Valuation & EstimatesOver the past year, MA’s shares have declined 5.3% compared with the industry’s fall of 17.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, MA trades at a forward price-to-earnings ratio of 25.15, above the industry average of 18.50. MA carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Mastercard’s 2026 earnings implies 15.3% growth from the year-ago period.
Image Source: Zacks Investment Research
Mastercard currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Visa remains a premier dividend growth stock, but recent price appreciation has closed the bargain window for new investors. V delivered strong Q2 results with 20% EPS growth and robust revenue, supported by payment volume and cross-border activity. Record $8 billion buybacks and a 28.5% payout ratio underscore Visa's financial strength and capacity for continued dividend growth.
Walmart WMT shares are on the rise following the announcement of thousands of summer Rollbacks across various categories, including grocery, household essentials, outdoor products, toys, and apparel. Additionally, over 250 price reductions have been introduced at Sam’s Club. This positive market response indicates that investors view these initiatives as a strategic move to enhance WMT’s value proposition, attract customers, and increase market share, rather than a sign of widespread inventory issues.
Price Investment: WMT is continuing its value strategy, which included approximately 7,200 Rollbacks in Q1, marking a year-over-year increase of over 20% across grocery and discretionary categories. Competitive Advantage: Walmart's purchasing scale, supply chain efficiency, and diverse product offerings allow it to lower prices more effectively than many competitors, helping to maintain customer traffic and loyalty. Margin Backdrop: In Q1, Walmart U.S. gross margin increased by 29 basis points, even as the company absorbed around $175 million in unexpected fuel costs instead of passing them onto consumers. While fuel inflation remains a concern, recent results indicate WMT's ability to invest in value without sacrificing overall margin improvement. Profit Cushion: Higher-margin sectors are bolstering WMT's model, with global advertising up 37%, U.S. advertising up 36%, membership fee revenue rising over 17%, and U.S. marketplace sales climbing nearly 50%. These Commerce Solutions businesses lessen WMT’s dependence on traditional merchandise margins. Core Demand: In Q1, Walmart U.S. comparable sales rose 4.1%, enterprise eCommerce sales increased by 26%, delivery sales grew by 45%, and general merchandise saw mid-single-digit growth with the strongest market share gains in five years. These trends suggest that the Rollbacks aim to further enhance already-strong demand rather than address a significant sales shortfall. Guidance and Inventory Watch: The Q2 adjusted EPS guidance of $0.72-0.74 fell short of the $0.75 FactSet Consensus, but WMT upheld its FY27 outlook of $2.75-2.85. Investors will be looking for assurance that inventory levels align with sales and that promotional activities do not escalate to the point of impacting earnings. Today's market response indicates that investors are recognizing WMT's strategic use of pricing to enhance its competitive position, rather than perceiving the Rollbacks as a warning sign. With its scale, procurement capabilities, and growing advertising, membership, and marketplace segments, WMT has more flexibility than many retailers to fund promotions while maintaining profitability. This initiative could further enhance customer traffic, retention, and market share across both grocery and discretionary sectors, especially as consumers remain focused on value. The upcoming earnings report will need to demonstrate that this strong value proposition translates into healthy comparable sales without compromising gross margin, inventory management, or the full-year profit forecast.
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].
Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.
For months, investors have debated whether agentic AI will replace retailers. JPMorgan thinks that’s the wrong question.
Instead, analyst Christopher Horvers argues the first wave of agentic AI could create a very different set of winners and losers.
Retailers and brands that control checkout, fulfillment and customer relationships may strengthen their competitive positions, while grocery retailers face the greatest disruption as AI automates routine shopping.
Why Walmart, Apple And Nike Stand OutMuch of Wall Street’s concern has centered on AI assistants like ChatGPT eventually standing between retailers and consumers.
JPMorgan believes that risk has eased. The bank noted that retailers regained control of transactions after OpenAI moved away from its Instant Checkout model. Instead, AI platforms are increasingly acting as “a more potent version of ‘googling,'” helping consumers discover products while purchases continue through retailer-controlled checkout.
That shift favors companies already positioned to own more of the shopping journey.
JPMorgan identifies Walmart Inc. (NASDAQ:WMT) as “leading the pack” with its Sparky AI assistant and integrations with third-party LLMs for product discovery, basket building and checkout.
Why Grocery Faces The Biggest RiskNot every retail category stands to benefit.
JPMorgan places grocery at the “top of the risk bucket” because repetitive, low-consideration purchases are well-suited for automated replenishment.
At the same time, AI improves “price discovery,” making it easier for consumers to compare products and potentially increasing pricing pressure on grocery retailers.
Categories where browsing is part of the experience—such as beauty, home furnishings and pet products—remain relatively insulated, the bank says.
The Bigger PicturePerhaps JPMorgan’s most contrarian takeaway is that agentic AI isn’t replacing retailers—it is reshaping how consumers find them.
Retailers that “invest to win” with major LLMs while building their own AI agents stand to strengthen customer acquisition, improve shopping experiences and preserve ownership of valuable customer data.
For investors, that shifts the debate away from which AI model wins. Instead, the companies best positioned for the agentic AI era may simply be the ones that continue to own the customer after the AI conversation ends.
Image: Shutterstock
Market News and Data brought to you by Benzinga APIs
JPMorgan Chase stock is trading at elevated levels. What’s the outlook for JPM shares? What To Watch Ahead of JPM Earnings on July 14JPMorgan is set to report second-quarter earnings before the opening bell on Tuesday, July 14, and analysts are calling for EPS of $5.61 on revenue of $49.56 billion, versus $4.96 and $44.91 billion in the prior-year period.
The company also said Monday it supports a regulatory framework for cryptocurrencies, while warning that the rules could carry risks—especially for stablecoins and yield-producing products.
What Is Driving JPMorgan’s Dividend and Buyback Boost?CEO Jamie Dimon framed the move as enabled by excess capital and liquidity, positioning JPMorgan to keep returning cash while maintaining balance-sheet strength and staying a “pillar of strength,” a message that helped fuel the prior breakout.
JPM Stock: Critical Resistance and Support LevelsJPM is pressing toward the top of its 52-week range ($279.10 to $343.45), with price now just below nearby resistance at $343.50—an area that lines up with the recent 52-week high zone where breakouts can stall on the first try.
Trend structure still looks constructive: the stock is trading 4.2% above its 20-day SMA ($327.16) and 10.4% above its 200-day SMA ($308.78), and the 20-day SMA remains above the 50-day SMA—typical of an uptrend that’s still being defended on pullbacks.
For momentum, MACD is above its signal line and the histogram is positive, which points to improving upside pressure versus the prior downswing; in plain terms, that usually means buyers are gaining control even if the stock pauses near resistance.
Key Resistance: $343.50 — a nearby pivot/52-week high area where rallies can stall before a clean breakout Key Support: $293.50 — a prior buyer-defense zone that sits well below current price, acting as a deeper "line in the sand" if the trend breaks JPM Earnings Preview: July 2026 EstimatesThe countdown is on: JPMorgan Chase & Co. is set to report earnings on July 14, 2026 (confirmed).
EPS Estimate: $5.59 (Up from $4.96 YoY) Revenue Estimate: $49.39 Billion (Up from $45.68 Billion YoY) Valuation: P/E of 16.2x (Suggests fair valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $350.00 across 17 analysts. Recent analyst moves include:
UBS: Buy (Raises Target to $384.00) (July 7) Evercore ISI Group: Outperform (Raises Target to $360.00) (July 6) Wells Fargo: Overweight (Raises Target to $360.00) (July 6) JPMorgan Chase Edge Rankings: Strengths and WeaknessesBelow is the Benzinga Edge scorecard for JPMorgan Chase, highlighting its strengths and weaknesses compared to the broader market:
The Verdict: JPMorgan Chase’s Benzinga Edge signal reveals a growth-leaning profile with middling momentum and a weaker quality read. For traders, that often means the chart can keep working higher, but earnings execution and guidance tone may matter more than usual near resistance.
JPM Stock Price Activity on TuesdayJPM Stock Price Activity: JPMorgan Chase shares were up 0.78% at $340.34 at the time of publication on Tuesday, according to Benzinga Pro data.
Image: Shutterstock
Market News and Data brought to you by Benzinga APIs
JPMorgan Chase & Co. (JPM - Free Report) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended June 2026. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.
The earnings report, which is expected to be released on July 14, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $5.49 per share in its upcoming report, which represents a year-over-year change of +10.7%.
Revenues are expected to be $48.71 billion, up 8.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.84% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. 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.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for JPMorgan Chase & Co.?For JPMorgan Chase & Co., the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.71%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that JPMorgan Chase & Co. will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that JPMorgan Chase & Co. would post earnings of $5.49 per share when it actually produced earnings of $5.94, delivering a surprise of +8.20%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
JPMorgan Chase & Co. appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAmong the stocks in the Zacks Financial - Investment Bank industry, Bank of America (BAC - Free Report) , is soon expected to post earnings of $1.11 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +24.7%. This quarter's revenue is expected to be $30.26 billion, up 14.4% from the year-ago quarter.
Over the last 30 days, the consensus EPS estimate for Bank of America has been revised 0.6% up to the current level. Nevertheless, the company now has an Earnings ESP of +1.43%, reflecting a higher Most Accurate Estimate.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), suggests that Bank of America will most likely beat the consensus EPS estimate. The company beat consensus EPS estimates in each of the trailing four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
11:10am: AI stock pullback looks like consolidation Selling pressure across semiconductor and AI-related stocks following Samsung's latest results appears to be a bout of profit-taking rather than the start of a deeper downturn, according to Zaheer Anwari, co-founder and CEO of The Revacy Fund.
While Samsung's earnings underscored strong AI-driven memory demand, investors sold the stock as much of the optimism had already been priced in, weighing on US semiconductor futures.
"The rally in AI stocks has been intact for months, and for now this still looks more like consolidation within that structure than the start of a reversal," Anwari said. He added that the firm continues to favor AI infrastructure and chipmakers, arguing that strong memory demand and long-term AI capital spending support the sector's structural growth outlook.
10am: Nasdaq falls as chips sell off Wall Street was mixed in early trading, with the Nasdaq losing 1.0% as investors rotated out of AI and semiconductor stocks. The S&P 500 fell 0.4%, while the Dow Jones was little changed at 53,067.
The chip sector was under heavy pressure, with Applied Materials down almost 10%, Lam Research, KLA, Western Digital and Intel all losing around 8%, while AMD and Micron both slid over 7%. Nvidia and Broadcom both slipped around 2%.
The sector was rattled by Samsung's post-earnings sell-off.
Defensive stocks supported the Dow, with Johnson & Johnson (NYSE:JNJ) and Verizon adding over 3%, followed by Coca-Cola, Procter & Gamble and McDonald's advancing over 2.5%.
8am: Mixed open expected US markets are set for a mixed open on Tuesday, with technology stocks expected to come under pressure after Samsung delivered record quarterly profits that still failed to satisfy investors, raising fresh questions about AI valuations.
Nasdaq futures were down 1.1% ahead of the opening bell, while S&P 500 futures slipped 0.2%. Dow futures bucked the trend, rising 0.3% or around 150 points.
This followed a strong session for Wall Street, with the Dow Jones climbing 0.3% to a record close of 53,055. The S&P gained 0.7% to 7,537, while the Nasdaq jumped 1.1% to finish at 26,121.
The mood shifted overnight after Samsung forecast operating profits comfortably ahead of consensus expectations, but the shares fell almost 7%.
The sell-off dragged South Korea's Kospi down almost 5%, knocked other Asian markets and is expected to weigh on US semiconductor names.
Another focus for investors will be SpaceX, which joined the Nasdaq-100 overnight after becoming eligible under revised index rules.
The inclusion is expected to trigger billions of dollars of passive buying from index-tracking funds, with JPMorgan estimating around $4.3 billion of demand for the stock.
Away from equities, oil rose around half a dollar to trade above $69 a barrel as geopolitical tensions around the Strait of Hormuz offset expectations of higher OPEC+ supply.
Gold slipped to around $4,130 an ounce, while today's economic calendar is light, a day ahead of the release of the Federal Reserve's June meeting minutes.
Tuesday's releases include the trade balance, the RCM/TIPP economic optimism index and the New York Fed's latest consumer inflation expectations survey. The ADP employment report, which has recently moved to weekly publication, will also be monitored for fresh signs of labour market strength ahead of weekly jobless claims data.
Analysts on Wall Street project that Delta Air Lines (DAL - Free Report) will announce quarterly earnings of $1.46 per share in its forthcoming report, representing a decline of 30.5% year over year. Revenues are projected to reach $17.73 billion, increasing 6.5% from the same quarter last year.
The current level reflects an upward revision of 0.8% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projections over this period.
Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically use consensus earnings and revenue estimates as indicators of quarterly business performance, exploring analysts' projections for specific key metrics can offer valuable insights.
Given this perspective, it's time to examine the average forecasts of specific Delta metrics that are routinely monitored and predicted by Wall Street analysts.
Analysts' assessment points toward 'Operating Revenues- Passenger' reaching $15.67 billion. The estimate points to a change of +13% from the year-ago quarter.
According to the collective judgment of analysts, 'Operating Revenues- Cargo' should come in at $224.17 million. The estimate points to a change of +5.7% from the year-ago quarter.
The consensus estimate for 'Operating Revenues- Other' stands at $3.21 billion. The estimate indicates a year-over-year change of +24.9%.
The consensus among analysts is that 'Passenger load factor' will reach 86.1%. Compared to the current estimate, the company reported 86.0% in the same quarter of the previous year.
The collective assessment of analysts points to an estimated 'Revenue passenger miles' of 67.17 billion. The estimate compares to the year-ago value of 66.42 billion.
Analysts expect 'CASM - Ex' to come in at N/A. Compared to the present estimate, the company reported N/A in the same quarter last year.
Based on the collective assessment of analysts, 'Available seat miles' should arrive at 77.99 billion. Compared to the current estimate, the company reported 77.65 billion in the same quarter of the previous year.
The average prediction of analysts places 'TRASM, adjusted' at N/A. The estimate is in contrast to the year-ago figure of N/A.
Analysts forecast 'Passenger revenue per available seat mile' to reach N/A. Compared to the current estimate, the company reported N/A in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Total revenue per available seat mile' will likely reach N/A. Compared to the current estimate, the company reported N/A in the same quarter of the previous year.
Analysts predict that the 'Passenger mile yield' will reach N/A. The estimate compares to the year-ago value of N/A.
It is projected by analysts that the 'Fuel gallons consumed' will reach 1045 millions of gallons. Compared to the present estimate, the company reported 1112 millions of gallons in the same quarter last year.
View all Key Company Metrics for Delta here>>>
Over the past month, Delta shares have recorded returns of +17.2% versus the Zacks S&P 500 composite's +2.1% change. Based on its Zacks Rank #3 (Hold), DAL will likely exhibit a performance that aligns with the overall market in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank is a proprietary stock-rating model that harnesses the power of earnings estimate revisions, or changes to a company's earnings expectations, to help investors build a successful portfolio.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Exxon Mobil (XOM - Free Report) Over the past decade, ExxonMobil has undergone a significant transformation, reshaping its business to adapt to evolving energy demands, financial discipline and environmental considerations. Traditionally reliant on oil and gas, the company has streamlined operations and focused capital on high-return, low-cost projects. ExxonMobil has achieved nearly $15.6 billion in structural cost savings since 2019, strategically enhancing its earnings power and improving cost efficiency.
XOM is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
It also boasts a Value Style Score of A thanks to attractive valuation metrics like a forward P/E ratio of 11.46; value investors should take notice.
Three analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.45 to $11.90 per share. XOM boasts an average earnings surprise of +6%.
With a solid Zacks Rank and top-tier Value and VGM Style Scores, XOM should be on investors' short list.
Key Takeaways ExxonMobil has gained 19.5% in the past year, nearly matching the industry's 19.4% rise.XOM is on track to grow Permian output to 1.8 million oil-equivalent barrels this year.Softer crude prices and a 9.06x EV/EBITDA multiple make ExxonMobil look overvalued. Exxon MobilCorporation (XOM - Free Report) has surged 19.5% over the past year, almost in line with the 19.4% improvement of the composite stocks in the industry. BP plc (BP - Free Report) and Chevron (CVX - Free Report) , two other integrated players in the same space, have gained 19.6% and 9.7%, respectively, over the same time frame.
Image Source: Zacks Investment Research
Since XOM is a large integrated energy giant, investors interested in the stock might have been assessing how the ongoing oil pricing environment is impacting its business fundamentals. Let’s delve deeper into ExxonMobil’s business outlook before concluding on whether to invest in the stock.
Can XOM's Upstream Business Thrive With Oil Below $70?ExxonMobil has a massive footprint in the Permian, the most prolific oil and gas play in the United States, and offshore Guyana. In the Permian, the integrated giant has been employing lightweight proppant technology and hence is capable of boosting its well recoveries by up to as much as 20%.
According to the data from the Federal Reserve Bank of Dallas, the shut-in price for existing wells in the Midland, a sub-basin of the Permian, is $42 per barrel. For Delaware, another sub-basin, the Federal Reserve Bank of Dallas estimated the price at $34 per barrel.
With West Texas Intermediate (“WTI”) crude oil trading below the $70-per-barrel mark, significantly above the shut-in prices, it makes sense for XOM to continue production in the wells. On the first-quarter earnings call, XOM mentioned that it is on track with its plan of growing its production in the most prolific basin to 1.8 million oil-equivalent barrels this year.
ExxonMobil’s Robust Balance & Dividend CommitmentInvestors should also keep in mind that XOM has a strong balance sheet, on which it could rely during an unfavorable business environment. The debt-to-capitalization of ExxonMobil is 15.4%, which is significantly lower than 29.6% of the industry’s composite stocks.
Image Source: Zacks Investment Research
Coming to the integrated energy giant’s dividend commitment story, over the past 43 years, ExxonMobil has been rewarding shareholders with annual dividend hikes at an average rate of 5.8%.
Should Investors Bet on the Stock Now?Before concluding, we should also consider that WTI crude oil is now significantly down from the more than $100-per-barrel mark reached in May this year. With upstream operations responsible for XOM’s significant earnings generation, softer commodity prices are likely to have hurt the company’s bottom line, as they are affecting both BP and CVX.
Also, XOM is currently trading at a premium. The stock is trading at a trailing 12-month EV/EBITDA multiple of 9.06x, which is higher than the broader industry average of 5.49x. BP and CVX, two other integrated majors, are valued at 2.83x and 8.82x, respectively.
Image Source: Zacks Investment Research
Thus, investors shouldn’t rush to bet on the overvalued ExxonMobil stock right away. Those who have already invested may hold the stock. Currently, XOM carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Published July 7, 2026 10:00am EDT | Updated July 7, 2026 10:02am EDT
Ford's 2 separate recalls affect Mustang, Mustang GTD and Mustang Mach-E vehicles Ford is recalling more than 110,000 vehicles in the U.S. across two separate safety campaigns after federal regulators identified defects involving windshield wipers and a rear drivetrain component that could increase crash risks.
According to the National Highway Traffic Safety Administration (NHTSA), the automaker is recalling 110,626 vehicles in two separate actions affecting certain Mustang, Mustang GTD and Mustang Mach-E models.
The larger recall affects 67,842 Mustang and Mustang GTD vehicles. NHTSA said that under certain cold-weather conditions, the windshield wipers may operate only at the high-speed setting, while the windshield washer system may not function properly. The agency said the reduced visibility could increase the risk of a crash.
FORD RECALLS 741,195 SUVS AND PICKUPS AFTER TRANSMISSION DEFECT RAISES ROLLAWAY RISK: NHTSA
A few brand-new Ford Mach-E Mustangs for sale at a dealership in Santa Clarita, California. (Getty Images)
In a separate recall, Ford is recalling 42,784 Mustang Mach-E vehicles because the rear differential pinion shaft may fracture.
Ford Motor Co. signage is displayed outside a dealership as the General Motors Co. headquarters building stands in the distance in Detroit, Michigan. (Jeff Kowalsky/Bloomberg via Getty Images )
THE $5 PLASTIC CLIP BEHIND MILLIONS OF FORD EXPLORER RECALLS: REPORT
According to NHTSA, the defect could result in a loss of drive power or unintended vehicle movement if the SUV is parked without the parking brake applied, increasing the risk of a crash.
Dealers will repair or replace the affected components free of charge.
FORD IN DEEP WATER AFTER SWEEPING RECALLS HIT EVERY MODEL SINCE 2020 – WITH ONE EXCEPTION
Ticker Security Last Change Change % F FORD MOTOR CO. 13.83 +0.47 +3.52% Ford shares were flat in early trading and are up more than 5% year to date.
Wall Street expects a year-over-year increase in earnings on higher revenues when Goldman Sachs (GS - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 14. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis investment bank is expected to post quarterly earnings of $14.01 per share in its upcoming report, which represents a year-over-year change of +28.4%.
Revenues are expected to be $16.31 billion, up 11.8% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 2.62% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. 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.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Goldman?For Goldman, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.07%.
On the other hand, the stock currently carries a Zacks Rank of #2.
So, this combination indicates that Goldman will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Goldman would post earnings of $16.34 per share when it actually produced earnings of $17.55, delivering a surprise of +7.41%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Goldman appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
BT21 X McDonald's Happy Meal Collaborations Arriving July 14
McDonald's
One of the most anticipated collaborations is coming to a McDonald’s Happy Meal near you. BTS’s LINE FRIENDS characters BT21 and McDonald’s have joined forces again (the last time was in 2023 in Asia) to bring the characters – KOYA (RM), RJ (Jin), SHOOKY (SUGA), MANG (j-hope), CHIMMY (Jimin), TATA (V), and SHOOKY (Jung Kook) – to you.
Starting July 14, BT21 Happy Meals will be available at participating McDonald’s restaurants for a limited time. BT21 will be IN SPACE. If you are unaware of the lore, Planet BT is where Prince TATA lives, but he wants to spread love across the world, which he does with his robot companion, VAN, as they travel to Earth and pick up new friends: KOYA, RJ, SHOOKY, MANG, CHIMMY, and COOKY. Together, they become the most influential pop-culture sensation the galaxy has ever known – just like their creators.
Last week, McDonald’s Instagram teased a video of the BT21 collaboration, fresh off last year’s Happy Meal collaboration with BTS’s other character IP, TinyTan. Like the TinyTan toys, they will be sold exclusively with Happy Meals.
BT21
LINE FRIENDS
What do we know?There will be 10 unique toys – at random – in each Happy Meal. The BT21 characters will be on a ring clip like a bag chain – a very popular accessory at the moment. It looks like they may be in individual spaceships. Since VAN is the only character who does not require a spaceship, VAN will be flying freely.
MORE FOR YOU
But there are eight characters in BT21? Who or what are the other two?Though it has not yet been revealed to the media at the time of posting, there will be individuals from KOYA, RJ, SHOOKY, CHIMMY, TATA, COOKY, and VAN. The other two options may be unit-based bag chains.
Is there anything else?Like the TinyTan Happy Meals, there will be an experience on HappyMeal.com where fans can scan the QR code on their Happy Meal box to unlock some cool activities, including creating different music tracks and bringing the BT21 characters to life.
Will there be a special event?McDonald’s x TinyTan threw an event in Los Angeles last time to celebrate the Happy Meals collaboration, but nothing has been confirmed yet, including the date or location.
When does it end?There’s no end date, but if they run out, that may be it, since it’s for a limited time.
BT21 X McDonald’s Happy Meal Collaboration begins on July 14 at a participating McDonald’s near you.
Key Takeaways PayPal is expanding BNPL to strengthen branded checkout and support checkout growth.PYPL's first-quarter BNPL volume rose 23% year over year, reflecting strong consumer adoption.PayPal sees BNPL as underpenetrated across its user base, leaving significant room for future growth. PayPal Inc. (PYPL - Free Report) is strengthening its buy now, pay later (BNPL) offering to enhance branded checkout, attract new customers and help merchants generate higher basket sizes. As consumers increasingly seek flexible payment options, BNPL is becoming an important driver of PayPal's checkout growth strategy.
PayPal identified checkout as a major growth opportunity, noting that digital wallets continue to gain traction as consumers prioritize convenience, security, rewards, loyalty benefits and flexible payment options like BNPL. The company also described BNPL as an important driver of customer acquisition and said the offering remains underpenetrated across its user base, leaving significant room for growth.
Beyond driving customer acquisition, BNPL benefits merchants by encouraging larger basket sizes and improving checkout conversion, supporting higher payment volumes across PayPal's platform. The momentum is reflected in operating performance. During the first quarter, BNPL volume increased 23% year over year, highlighting strong consumer adoption.
PayPal is also investing in expanding BNPL usage. Management said transaction margin growth was partially offset by strategic investments aimed at improving customer habituation and selection rates across branded checkout and BNPL. Likewise, transaction take rate declined partly due to product mix and continued investments in branded checkout and BNPL.
However, BNPL also brings credit and funding considerations. As part of PayPal's broader credit receivables business, its growth depends on effective credit risk management and the successful sale of receivables to third parties. Balancing these risks with continued adoption will be key to sustaining BNPL's long-term contribution to checkout growth.
How Are PYPL’s Competitors Fairing?Affirm Holdings (AFRM - Free Report) offers transparent installment loans, checkout financing and merchant integrations across retail, travel, electronics and e-commerce. Affirm’s latest quarter showed $11.6 billion gross merchandise value (GMV), up 35% YoY, $1.04 billion in revenues, up 33%, and 26.8 million active customers, strengthening AFRM’s BNPL position.
Klarna Group (KLAR - Free Report) offers BNPL at a global scale. In first-quarter 2026, Klarna reported $33.7 billion GMV, up 33% YoY, $1 billion in revenues, up 44%, and $68 million in adjusted operating profit. KLAR’s merchant network, app tools and U.S. growth make KLAR relevant to PayPal.
PYPL’s Price Performance, Valuation & EstimatesShares of PayPal have declined 1.6% over the past three months, underperforming both the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
In terms of forward 12-month P/E, PYPL stock is trading at 8.14X, which is at a significant discount to the Zacks Financial Transaction Services industry’s 18.5X.
Image Source: Zacks Investment Research
PayPal’s estimate revisions reflect a positive trend. The Zacks Consensus Estimate for full-year 2026 EPS has been revised upward over the past week.
Image Source: Zacks Investment Research
PayPal currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
