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MILL VALLEY, Calif.--(BUSINESS WIRE)--Redwood Trust, Inc. (NYSE:RWT; "Redwood", the "Company"), a leader in expanding access to housing for homebuyers and renters, today provided the following update regarding its Aspire business and selected consolidated operating results for the second quarter ended June 30, 2026. Aspire Update Christopher J. Abate, Chief Executive Officer, commented: "Our mortgage banking businesses continued their momentum in the second quarter, with aggregate volumes of ov.

NEW YORK--(BUSINESS WIRE)--Klarna, the global digital bank and payments provider, and Southwest Airlines® today announced a long-term partnership to bring new flexible, transparent payment options to millions of Southwest® customers across the United States.

More than one in four Americans say they're more likely to book when flexible payment options are available at checkout1. Starting later this year, travelers booking on Southwest.com® and the Southwest® app will be able to choose from Klarna’s range of payment options at checkout, including paying in full, splitting the cost into four interest-free installments, or financing their trip over time.

"Southwest has spent over 50 years making flying accessible to more Americans, and we're proud to be the partner that takes that mission one step further," said David Sykes, Chief Commercial Officer at Klarna. "Whether booking a long weekend or a cross-country trip, millions of travelers will now have access to Klarna's flexible payment options at checkout, providing a smart booking experience that gives travelers more choice in how they pay."

The partnership places Klarna in front of one of the largest travel audiences in the country. Southwest carries more nonstop domestic passengers than any other U.S. airline, serving over 134 million customers in 2025.2 For Klarna, the deal marks another milestone in its push to become the default payment choice for travel. No other player in the space matches Klarna's global scale or the breadth - 119 million consumers across 26 countries - of its financial products, from flexible payments to savings and spending tools. Known for its transparent pricing and customer-first approach, Southwest is a natural partner for Klarna as it continues to scale its presence in travel.

“Southwest is focused on giving more choice to Customers when they travel with us,” said Corbitt Burns, Managing Director Loyalty & CoBrand at Southwest Airlines. “With Klarna’s flexible payment options, customers gain another convenient way to book flights and enjoy our industry-leading reliability and Hospitality.”

1 https://www.empower.com/the-currency/money/buy-now-pay-later-statistics
2 Based on U.S. Dept. of Transportation quarterly Airline Origin & Destination Survey as of Q4 2025

Forward-looking statements

This press release contains forward-looking statements within the meaning of applicable securities laws. These statements include, but are not limited to, statements regarding our future financial performance, business strategy, growth objectives and market opportunities. Words such as "believe," "expect," "anticipate," "intend," "plan," "will," "may," "could," "estimate," and similar expressions identify forward-looking statements. These forward-looking statements are subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those expressed or implied. Forward-looking statements reflect our views as of the date of this release and are based on information currently available to us. We undertake no obligation to update any forward-looking statements, except as required by law. Actual results may differ materially from those anticipated. Investors should not place undue reliance on these forward-looking statements and should review the risk factors in our filings with the SEC for a more complete discussion of risks.

About Klarna

Klarna is a global digital bank and flexible payments provider. With over 119 million global active Klarna users and 3.4 million transactions per day, Klarna’s AI-powered payments and commerce network is empowering people to pay smarter with a mission to be available everywhere for everything. Consumers can pay with Klarna online, in-store and through Apple Pay & Google Pay. More than one million retailers trust Klarna’s innovative solutions to drive growth and loyalty, including Uber, H&M, Saks, Sephora, Macy’s, Ikea, Expedia Group, Nike and Airbnb. Klarna is listed on the New York Stock Exchange (NYSE: KLAR). For more information, visit Klarna.com.

Category: Partnerships

Shares of SanDisk Inc. SNDK fell sharply in trading on Tuesday as a broad selloff in memory-chip stocks spread from South Korea to US markets despite strong preliminary earnings from Samsung Electronics.

SanDisk shares declined 8% after falling 23% over the previous three trading sessions.

The stock has been one of the strongest performers in the US technology sector this year, gaining about 635% year to date and more than 3,750% over the past 12 months.

The decline came as investors took profits across the memory-chip sector following steep gains in semiconductor stocks driven by artificial intelligence demand.

The selling pressure followed Samsung Electronics' preliminary second-quarter earnings announcement.

The South Korean technology company projected operating profit of 89.4 trillion won ($58.44 billion), representing a 19-fold increase from the same period a year earlier. Samsung also forecast revenue of 171 trillion won, up 129% year over year.

Despite the stronger-than-expected results, Samsung shares fell 6.9% in South Korean trading as investors appeared to lock in gains after a prolonged rally. The stock has risen about 380% over the past year.

SK Hynix also declined 6.1%, with the two companies together accounting for more than half of the Kospi index's market capitalization.

The broader South Korean market came under pressure as heavy selling in chipmakers pushed the Kospi down as much as 8.2% during the session, briefly placing the index in bear market territory before trimming some losses.

The weakness in South Korea quickly spread to US semiconductor stocks.

Micron Technology and Western Digital fell 7.3% and 8.14% respectively in trading.

The Roundhill Memory ETF (DRAM), whose largest holdings include Samsung, SK Hynix and Micron, dropped 6.2%.

The selloff extended beyond memory-chip companies. Intel and Advanced Micro Devices each declined more than 6%, while Nvidia slipped 1.5%.

Investors appeared to be taking profits after a prolonged rally in semiconductor shares, particularly in companies benefiting from growing demand for AI-related memory and storage products.

SanDisk's recent decline comes after an extended period of exceptional gains.

Although the stock has fallen more than 20% over the past three trading sessions, it remains one of the best-performing US technology stocks over the past year.

The company has previously experienced similar pullbacks, including a four-day losing streak in May and a five-day decline in March before resuming its broader upward trend.

Profit-taking was also evident across the memory sector.

Micron and SanDisk are now trading well below the highs they reached last month, while the Roundhill Memory ETF has declined 19% from its June 22 peak.

Investors are also preparing for another potential catalyst later this week, with South Korean memory-chip maker SK Hynix scheduled to begin trading on the Nasdaq on Friday.

The upcoming listing could keep attention focused on the memory-chip sector as investors continue to assess whether recent declines represent a pause in the AI-driven rally or the beginning of a broader correction following months of outsized gains.

Artificial intelligence is hitting a severe physical barrier. The language models are getting exponentially smarter, and the silicon is processing data faster than ever before, but the physical electrical grid cannot deliver power fast enough to keep up with demand. Hyperscalers require multi-gigawatt power drops and large liquid-cooling systems to train their next-generation models, and they need these facilities to be fully operational immediately.

Enter the Bitcoin mining sector. For years, cryptocurrency miners have spent billions building high-density energy fortresses in remote locations. Now, operators with the right infrastructure are realizing they hold the exact real estate that artificial intelligence (AI) developers are desperate to acquire.

Get TeraWulf alerts:

The $19 Billion Jolt: Rewiring the AI Infrastructure TradeTeraWulf Today

$19.68 -2.53 (-11.37%)

As of 10:16 AM Eastern

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

52-Week Range$4.64▼

$29.84Price Target$33.93

TeraWulf Inc. NASDAQ: WULF just provided the definitive proof of concept for this entire infrastructure crossover thesis. TeraWulf recently executed a landmark 20-year lease agreement with artificial intelligence powerhouse Anthropic, securing an estimated $19 billion in contracted revenue over the initial term.

Investors should see this as more than a standard commercial real estate transaction. It represents a fundamental structural shift in how digital infrastructure operators can monetize stranded power assets. By transitioning from the highly cyclical nature of cryptocurrency mining to utility-grade data center yield, TeraWulf is setting an entirely new operational precedent for the high-performance computing (HPC) sector.

Flipping the Switch: Funding a $19B Hyperscaler EmpireTo understand the magnitude of this transition, investors must look at the specific mechanics of the Anthropic agreement and how TeraWulf is actively funding the buildout. The 20-year lease centers on the Justified Data campus in Hawesville, Kentucky, which is a purpose-built facility designed to handle 401 megawatts of critical IT load.

Management expects to place the initial capacity into service in the second half of 2027, ramping up to the full 401 megawatts by early 2028. To put that scale into perspective, traditional enterprise data centers often operate between 10 and 50 megawatts. A 401-megawatt site is a true digital fortress.

Building a facility of this magnitude requires immense capital expenditure. A glance at the balance sheet reveals an elevated debt-to-equity ratio of 33.00, a lingering byproduct of rapid infrastructure expansion during previous crypto bull markets. Funding this new Anthropic campus entirely through high-interest debt or heavy equity dilution would have severely penalized current shareholders. Instead, TeraWulf executed a strategic masterclass in capital recycling.

Simultaneous to the Anthropic announcement, TeraWulf sold its 50.1% interest in the Abernathy Joint Venture to a Fluidstack-led investor group. This specific divestiture monetizes a 168-megawatt Texas facility for $450 million at a premium to the initial invested capital.

By liquidating a legacy joint venture stake, TeraWulf captures immediate non-dilutive capital to redeploy directly into the wholly owned Justified Data project. This maneuver eliminates joint-venture accounting constraints and ensures TeraWulf maintains direct operational control over its most lucrative hyperscaler infrastructure.

Upgrading the Circuit: From Block Rewards to AI YieldThis strategic pivot completely rewrites TeraWulf's forward-looking margin profile. Historically, cryptocurrency miners suffer from brutal margin compression. They are tethered to volatile block rewards, unpredictable spot pricing, and mandatory hardware refresh cycles following every network halving event. Recent historical earnings reflect these exact operational challenges, highlighted by a sharp first-quarter 2026 earnings miss and heavily negative trailing net margins.

Hosting enterprise-grade artificial intelligence workloads changes the financial math entirely. Hyperscalers require the same multi-megawatt grid interconnects and liquid-cooling infrastructure as modern miners, but they pay significantly higher premiums for network stability and guaranteed uptime.

Industry data suggests that high-performance computing workloads yield approximately $149,000 per megawatt month. By comparison, conventional mining operations generate roughly $87,000 per megawatt month.

By locking in a two-decade agreement backed by an investment-grade credit rating, TeraWulf replaces the unpredictable lottery of mining rewards with predictable cash flows. Investors are seeing similar transition attempts across the sector from peers like Core Scientific Inc. NASDAQ: CORZ and Iris Energy Ltd. NASDAQ: IREN, but securing a binding $19 billion commitment from a tier-one developer firmly separates the actual operators from the aspirational ones.

Shock to the System: A High-Voltage SqueezeThe underlying business fundamentals are shifting rapidly, and technical market mechanics are heavily amplifying the upside narrative. A severe disconnect currently exists between institutional positioning and retail short sellers, creating a highly volatile setup that heavily favors acute upward price action.

Over the trailing 12 months, smart money has been aggressively accumulating shares.

TeraWulf Stock Forecast Today12-Month Stock Price Forecast:
$33.46
50.63% Upside

Moderate Buy
Based on 18 Analyst Ratings

Current Price$22.21High Forecast$66.50Average Forecast$33.46Low Forecast$18.25TeraWulf Stock Forecast Details

Recent 13F filings indicate $991.36 million in institutional inflows compared to just $305.12 million in outflows, bringing total institutional ownership to a majority 62.49% of the outstanding shares. Investors will also see transparent internal positioning ahead of this catalyst, highlighted by a recent stock retainer grant to Director Walter E. Carter and a structured trading plan established by CEO Paul Prager to navigate the anticipated capacity scaling.

Despite this clear institutional conviction, short interest remains acutely elevated. Currently, 108.7 million shares are sold short, accounting for almost 28% of the publicly available float. With a days-to-cover ratio sitting at 4.1, bearish traders find themselves incredibly vulnerable to sudden price spikes.

Short sellers built their thesis on the assumption of continued margin compression and debt distress from legacy mining operations. The sudden realization of $19 billion in contracted high-margin revenue actively forces a complete reassessment of that bear thesis.

As TeraWulf begins to book this utility-grade yield, the fundamental repricing of the stock introduces extreme near-term margin pressure on those short positions. This acts as a forced-covering mechanism, adding intense buying volume to an equity already experiencing heavy institutional accumulation.

Plugging Into the Next Generation of ComputeTeraWulf has provided the definitive blueprint for monetizing high-density power assets in the modern digital economy. The transition from cryptocurrency hardware to utility-grade computational real estate structurally derisks the business model while drastically expanding long-term revenue visibility.

Investors seeking exposure to the physical infrastructure required to power the next generation of computing may want to add TeraWulf to their watchlist as the initial phases of the Anthropic buildout take shape. As always, execution risk remains a factor in any large-scale development project, particularly regarding the timely deployment of the 401-megawatt infrastructure by 2027. Cautious market participants might prefer to monitor upcoming earnings reports to verify that capital from the Abernathy sale is efficiently flowing into the Kentucky campus before taking a definitive position.

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GFL Environmental (GFL) saw its shares surge in the last session with trading volume being higher than average. The latest trend in earnings estimate revisions may not translate into further price increase in the near term.

Not for distribution to United States news wire services or for dissemination in the United States.

WELLSTAR is expected to become a publicly listed company through a TSXV listing, supported by a Concurrent Financing with gross proceeds of approximately $50 million anchored by strong institutional subscription from a large Canadian bank-owned asset manager and continued support from existing shareholders. The proposed public listing is expected to crystallize the value of WELLSTAR's underlying assets through an independent public market valuation, while providing a dedicated acquisition currency to support its long-term growth strategy.WELLSTAR is a high growth, profitable pure-play healthcare technology company with a historical three-year organic revenue CAGR of over 20% and expected 2026 Adjusted EBITDA margin of 21%. The Company serves over 40% of providers across Canada with high quality technology and services that significantly reduce providers’ administrative burden, and is expected to generate approximately $95 million of revenue in 2026.Following the listing, WELL is expected to remain a significant long-term controlling shareholder and growing customer, reinforcing its commitment to WELLSTAR while unlocking value for WELL shareholders and providing WELLSTAR continued access to one of Canada's largest outpatient clinic networks to support WELLSTAR's continued growth.The Concurrent Financing is being led by TD Securities Inc., RBC Capital Markets and Stifel, on behalf of a syndicate of agents, with proceeds used to fund strategic acquisitions, AI-driven product innovation, organic growth initiatives, and general corporate purposes, further strengthening WELLSTAR’s position as a leading healthcare technology platform. Purchasers will receive subordinate voting shares in WELLSTAR, each of which will subsequently be exchanged for one freely tradeable Resulting Issuer SVS in connection with the completion of the Transaction expected to occur in mid-September 2026. VANCOUVER, British Columbia, July 07, 2026 (GLOBE NEWSWIRE) -- WELL Health Technologies Corp. (TSX: WELL) (OTCQX: WHTCF) (“WELL”), a digital health company focused on positively impacting health outcomes by leveraging technology to empower healthcare practitioners and their patients globally, together with 1587818 B.C. Ltd. (“818”), are pleased to announce that WELL’s subsidiary, WELLSTAR Technologies Corp. (“WELLSTAR” or the “Company”), has entered into an amalgamation agreement dated as of the date hereof (the “Amalgamation Agreement”) with 818, pursuant to which WELLSTAR and 818 will amalgamate under the Business Corporations Act (British Columbia) (such amalgamated entity, the “Resulting Issuer”) (the “Transaction”) and intends to apply to concurrently list the Resulting Issuer’s subordinate voting shares on the TSX Venture Exchange (the “TSXV”).

The Transaction is currently expected to close on or about September 16, 2026. Following completion of the Transaction, it is anticipated that the Resulting issuer will carry on the business of WELLSTAR and the subordinate voting shares of the Resulting Issuer (the “Resulting Issuer SVS”) will be listed on the TSXV.

WELL is also pleased to announce that, in connection with, and as a condition to closing of, the Transaction, WELLSTAR is undertaking a brokered private placement (the “Concurrent Financing”) of subscription receipts (“Subscription Receipts”). TD Securities Inc., RBC Capital Markets and Stifel Nicolaus Canada Inc. (“Stifel” and together with TD Securities Inc. and RBC Capital Markets, the “Lead Agents”), on behalf of a syndicate of agents (collectively with the Lead Agents, the “Agents”) will support WELLSTAR on a best efforts basis in offering the Subscription Receipts. The Concurrent Financing is expected to raise aggregate gross proceeds of approximately C$50 million at a price of C$10.00 per Subscription Receipt (the “Issue Price”)1. WELLSTAR has also granted the Agents an option (the “Agents’ Option”), exercisable in whole or in part at any time up until 48 hours prior to the date of closing of the Concurrent Financing, to place at the Issue Price up to such number of additional Subscription Receipts as is equal to 15% of the Subscription Receipts issuable under the Concurrent Financing. The Concurrent Financing is anchored by strong institutional subscription from a large Canadian bank-owned asset manager and continued support from existing shareholders, continuing WELLSTAR's successful track record of financing independently. Closing of the Concurrent Offering is expected to occur on or about July 29, 2026 (the “Subscription Receipt Closing Date”).

Hamed Shahbazi, Chairman and CEO of WELL, commented, “This transaction is a significant milestone in WELL's strategy to unlock the value of our healthcare technology assets while retaining a meaningful ownership position in one of Canada's leading digital health platforms. WELLSTAR's electronic medical records, AI-enabled clinical tools and practice management solutions are the technology foundation powering a significant portion of our clinics across Canada, and that clinical environment in turn strengthens WELLSTAR's products, a symbiotic relationship that will endure as WELL remains a significant long-term shareholder. A standalone public listing will give WELLSTAR enhanced strategic flexibility, greater access to growth capital and increased visibility with investors, positioning it to create long-term value for both WELL and WELLSTAR shareholders.”

Amir Javidan, CEO of WELLSTAR, further commented, “Today's announcement marks the beginning of an exciting new chapter for WELLSTAR as we prepare to become a publicly listed healthcare technology company. We are encouraged by the strong interest we've already received from institutional investors, which reflects confidence in our business, our leadership team and our long-term vision. Access to the public markets, together with the capital raised through this financing, will enhance our strategic flexibility and position us to accelerate product innovation, expand our AI capabilities, execute on our acquisition pipeline and continue delivering solutions that empower healthcare providers and improve patient outcomes.”

Concurrent Financing

In connection with the Transaction, WELLSTAR is undertaking a brokered private placement of Subscription Receipts. The Concurrent Financing is expected to raise aggregate gross proceeds of approximately C$50 million at a price of C$10.00 per Subscription Receipt, reflecting the 818 Consolidation and WELLSTAR Consolidation. The net proceeds of the Concurrent Financing will be released to WELLSTAR on the closing of the Transaction and be used by WELLSTAR for potential future acquisitions, AI-related innovation, organic growth initiatives and general corporate purposes.

Each Subscription Receipt will entitle the holder, without payment of any additional consideration or further action on the part of the holder, and subject to adjustment in certain events, upon satisfaction of certain escrow release conditions (as defined in the Subscription Receipt Agreement, the “Escrow Release Conditions”) in accordance with the terms of the Subscription Receipt Agreement, and following the 818 Consolidation and WELLSTAR Consolidation (as defined below), to receive one subordinate voting share of WELLSTAR (“WELLSTAR SVS”), which will subsequently be exchanged for one freely tradeable Resulting Issuer SVS in connection with the completion of the Transaction. The Subscription Receipts issued in connection with the Concurrent Financing are subject to a statutory hold period, in accordance with applicable securities legislation, however, the Resulting Issuer SVS will not be subject to a hold period pursuant to Canadian securities laws and will be listed on the TSXV.

The Agents will receive a cash commission payable by WELLSTAR to the Agents, equal to 6% of the aggregate gross proceeds of the Concurrent Financing, reduced to 2% of the aggregate gross proceeds for investors on a president’s list agreed between the Lead Agents and WELLSTAR (the “Agents’ Commission”).

On the Subscription Receipt Closing Date, the gross proceeds of the Subscription Receipts, less 50% of the Agents’ Commission and all of the expenses of the Agents not yet paid as of such date, will be delivered to and held by the Subscription Receipt Agent and invested in an interest bearing account until satisfaction of the Escrow Release Conditions or the Escrow Deadline (as defined below) (the “Escrowed Proceeds”, and together with all interest and other income earned thereon, referred to as the “Escrowed Funds”).

If (i) the Escrow Release Conditions are not satisfied prior to 90 days from the Subscription Receipt Closing Date or such later date as may be agreed to by not less than 66 2/3% of the votes of holders of the Subscription Receipts (the “Escrow Deadline”) or, (ii) if prior to the Escrow Deadline, the Amalgamation Agreement is terminated or WELLSTAR has advised the Subscription Receipt Agent and the Lead Agents, or announced to the public, that the Transaction will not be completed (the date upon which such event occurs, the “Termination Date”), within five business days following the Termination Date, the Escrowed Funds shall be returned to the holders of Subscription Receipts pro rata. To the extent that the Escrowed Funds are not sufficient to satisfy the Issue Price of each such Subscription Receipt, WELLSTAR will contribute such amounts as are necessary to satisfy any shortfall.

On the date on which the Escrow Release Conditions are satisfied (the “Escrow Release Date”), the Subscription Receipt Agent shall release from the Escrowed Funds: (i) to the Agents, an amount equal to the balance of the Agents’ Commission and all remaining expenses of the Agents not previously paid (collectively, the “Agents’ Payment”), and (ii) following release of the Agents’ Payment, all remaining Escrowed Funds shall be released to the Resulting Issuer.

The securities to be offered in the Concurrent Financing have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

Transaction Details

Share Consolidations

Immediately prior to the completion of the Transaction, each of 818 and WELLSTAR intend to undertake certain share consolidations on exchange ratios to be finally determined and subject to receipt of necessary corporate approvals (the “818 Consolidation” and the “WELLSTAR Consolidation”, respectively).

Preferred Share Conversion

The Transaction and Concurrent Financing together will constitute an Automatic Conversion Event under the terms of the WELLSTAR Series A Preferred Shares and WELLSTAR Series B Preferred Shares. Immediately prior to the completion of the Transaction, WELLSTAR will convert all issued and outstanding WELLSTAR Series A Preferred Shares and WELLSTAR Series B Preferred Shares into fully paid and non-assessable WELLSTAR SVS (the “Preferred Share Conversion”).

Amalgamation

The Amalgamation Agreement between WELLSTAR and 818 provides, among other things, that (i) WELLSTAR and 818 will amalgamate pursuant to the provisions of the Business Corporations Act (British Columbia), (ii) all of the outstanding WELLSTAR SVS, including those issued in connection with the Preferred Share Conversion, will be cancelled and, in consideration therefor, the holders thereof will receive Resulting Issuer SVS on the basis of one Resulting Issuer SVS for each WELLSTAR SVS held, (iii) all of the outstanding multiple voting shares of WELLSTAR (“WELLSTAR MVS”) will be cancelled and, in consideration thereof, the holders thereof will receive multiple voting shares in the capital of the Resulting Issuer (“Resulting Issuer MVS”) on the basis of one Resulting Issuer MVS for each WELLSTAR MVS held and (iv) all of the outstanding shares of 818 post-818 Consolidation (“Post-Consolidation 818 Shares”) will be cancelled and, in consideration thereof, the holders thereof will receive Resulting Issuers SVS on the basis of one Resulting Issuer SVS for each Post-Consolidation 818 Share held.

Closing Conditions

Completion of the Transaction will be subject to certain customary conditions, including among others: (i) that holders of WELLSTAR SVS and WELLSTAR MVS have passed a special resolution in writing with respect to the Amalgamation Agreement; (ii) that holders of shares of 818 have passed a special resolution with respect to the Amalgamation Agreement; (iii) that 818 will have instituted a dual class share structure; (iv) that 818 will have completed the 818 Consolidation; (v) that WELLSTAR will have completed the WELLSTAR Consolidation; (vi) that WELLSTAR will have completed the Preferred Share Conversion; (vii) the completion of the Concurrent Financing; (vii) the execution and delivery of the filing statement of 818 and receipt of conditional acceptance of such filing statement and of the Transaction by the TSXV; (viii) that 818 shall not be in default of the requirements of the TSXV and any securities commission and no order shall have been issued that would prevent the Transaction or the trading of any securities of 818 or the Resulting Issuer; (ix) the receipt of all consents, orders and approvals necessary or desirable for the completion of the Transaction; and (x) that 818 shall have been a reporting issuer for at least four months and one day prior to the closing date of the Transaction.

Resulting Issuer Share Capital

Upon completion of the Transaction, the Resulting Issuer’s articles will provide for three classes of shares: Resulting Issuer SVS, Resulting Issuer MVS and preferred shares issuable in series. Upon completion of the Transaction, the Concurrent Financing, the Preferred Share Conversion and reflecting the 818 Consolidation and WELLSTAR Consolidation, an aggregate of 23.3 million Resulting Issuer SVS, 25.8 million Resulting Issuer MVS (24.1 million Resulting Issuer SVS and 25.8 million Resulting Issuer MVS if the Agents’ Option is exercised in full) and no preferred shares are expected to be issued and outstanding. All of the issued and outstanding Resulting Issuer MVS will be held by WELL.

Each Resulting Issuer SVS will be entitled to one vote and each Resulting Issuer MVS will be entitled to four votes. After giving effect to the Transaction, the Concurrent Financing and the Preferred Share Conversion, the Resulting Issuer SVS will collectively represent 47.5% of the Resulting Issuer’s issued and outstanding shares and 18.4% of the voting rights attached to all of the issued and outstanding shares (48.3% and 18.9%, respectively, if the Agents’ Option is exercised in full) and the Resulting Issuer MVS will collectively represent 52.5% of the Resulting Issuer’s issued and outstanding shares and 81.6% of the voting rights attached to all of the issued and outstanding shares (51.7% and 81.1%, respectively, if the Agents’ Option is exercised in full).

Other Key WELLSTAR Agreements

WELL and WELLSTAR are parties to a shared services agreement pursuant to which WELL provides information technology, cybersecurity, human resources administration, tax, legal, marketing, accounts payable and such other services as may be agreed by the parties. This agreement will remain in place following completion of the Transaction.

Upon completion of the Transaction, WELL intends to enter into an investor rights agreement (the “Investor Rights Agreement”) with the Resulting Issuer providing for, among other things, certain director nomination rights and customary demand and piggyback registration rights with respect to future public offerings by the Resulting Issuer, subject to the terms and conditions to be included in the Investor Rights Agreement.

Upon completion of the Transaction, WELL will enter into a customary coattail agreement with the Resulting Issuer and a trustee (the “Coattail Agreement”). The Coattail Agreement will contain provisions customary for dual-class, TSXV-listed issuers.

The Investor Rights Agreement and Coattail Agreement will be available for review under the Resulting Issuer’s profile on SEDAR+ at www.sedarplus.com on completion of the Transaction.

Stock Exchange Matters

As at the date hereof, neither the WELLSTAR SVS nor the 818 Shares are listed on any stock exchange. A condition to completion of the Transaction is the fulfillment by the Resulting Issuer of all of the minimum listing requirements of the TSXV and obtaining conditional approval for the listing of the Resulting Issuer Shares on the TSXV. A filing statement in respect of the Resulting Issuer Shares, which will include further details of the Transaction, will be filed on 818’s issuer profile on SEDAR+ at www.sedarplus.ca provided TSXV’s conditional approval of the listing of the Resulting Issuer Shares has been obtained. There can be no assurance that the TSXV will grant such conditional approval or that the Transaction will be completed as proposed or at all.

About WELLSTAR

About the Business

WELLSTAR is a digital healthcare company focused on positively impacting health outcomes by leveraging technology to empower healthcare providers and their patients. WELLSTAR offers innovative technology and services to enhance patient care and operational efficiency. WELLSTAR’s digital technologies are contributing to the transformation of the future of healthcare through a comprehensive suite of solutions tailored to meet the needs of healthcare providers and patients. WELLSTAR’s suite of solutions can be divided into three principal business units: (i) Clinical Platform Group; (ii) Digital Health Networks; and (iii) Billing and Practice Management.

WELLSTAR is currently a partially-owned subsidiary of WELL. WELLSTAR’s close strategic relationship with WELL, one of the largest operators of outpatient medical clinics in Canada, provides WELLSTAR with industry insight and expertise in optimizing clinical workflows, enhancing patient engagement, and streamlining administrative processes.

A summary of certain financial information for WELLSTAR is included in the tables below:

CAD Millions  As at March 31, 2026(1)Cash and Cash Equivalents (2)$75 Debt (Deferred Acquisition Costs)($3)Net Cash$72   WELLSTAR Shareholders’ Equity$48 Non-Controlling Interest$8 Total Equity$56  (1) Unaudited.
(2) Pro forma adjusted to give effect to the repayment of a $10 million loan to WELL, as if received on March 31, 2026.

 2026E(2)2025(2)2024(2)Revenue$95 $72 $45 Adjusted Gross Profit(1)$72 $54 $36 Adjusted EBITDA(1)$20 $16 $10 Adjusted EBITDA Margin(1)21%23%22%Net lossN/A(3)($6)($4)Free Cash Flow(1)$11 $10 $6      Q1 2026(2)Q1 2025(2)YoY ChangeRevenue$22 $17 26%Adjusted Gross Profit(1)$16 $12 29%Adjusted EBITDA(1)$3.9 $3.6 10%Adjusted EBITDA Margin(1)18%21%-300 bpsNet loss($8)($1)571% (1) These measures are unaudited, are not recognized under IFRS and do not have standardized meanings prescribed by IFRS. Refer to “Non-IFRS Measures” below for a definition of these measures and “Reconciliation of Non-IFRS Measures” for reconciliations of these measures to standardized IFRS measures.
(2) Full year 2024 and 2025 financial information is audited. Q1 2025, Q1 2026 and 2026E financial information is unaudited.
(3) Net income (loss) is not forecasted for 2026.

Further financial information will be included in the filing statement to be prepared in connection with the Transaction. An investor presentation relating to information in respect of the WELLSTAR business can be found on the Company’s website at investors.wellstar.health.

Proposed Directors and Senior Management Team

The current Chief Executive Officer and Chief Financial Officer of WELLSTAR, Amir Javidan and Darren Hoegler, each of whom was appointed to their current roles at WELLSTAR in December 2024, will be the Chief Executive Officer and Chief Financial Officer of the Resulting Issuer. Hamed Shahbazi, Chairman and Chief Executive Officer of WELL and current Chairman of the WELLSTAR board of directors, will be the Chairman of the board of directors of the Resulting Issuer with the board of directors also including Amir Javidan, Evelyn Sutherland, Matt Mattox and Sue Paish (each currently a member of the WELLSTAR board of directors). Other members of the WELLSTAR executive team are expected to remain in their current roles at the Resulting Issuer following the Transaction.

WELL HEALTH TECHNOLOGIES CORP.
Per: “Hamed Shahbazi”
Hamed Shahbazi
Chief Executive Officer, Chairman and Director   

About WELL Health Technologies Corp.

WELL Health Technologies Corp. (TSX: WELL) is Canada’s largest outpatient healthcare company and a leading provider of technology-enabled healthcare solutions. WELL is building the infrastructure for a healthier Canada, where every patient gets better care, every provider is empowered by AI, and every piece of health data is protected. WELL owns and operates approximately 270 clinics in Canada, supporting more than 5 million annual patient visits. Through its subsidiary WELLSTAR, WELL provides electronic medical records, AI-powered clinical tools, patient engagement platforms and IT management services. WELL provides cybersecurity services through its CYBERWELL subsidiary. WELL is publicly traded on the TSX under the symbol “WELL” and on the OTC Exchange under the symbol “WHTCF”. To learn more, please visit: www.well.company.

Non-IFRS Measures

Adjusted Gross Profit

Adjusted Gross Profit is defined as revenue less cost of sales, excluding depreciation and amortization. Adjusted Gross Profit should not be construed as an alternative for revenue or net income (loss) determined in accordance with IFRS. WELLSTAR does not present gross profit in its consolidated combined financial statements as it is a non-IFRS financial measure. WELLSTAR believes that Adjusted Gross Profit is a meaningful metric that is often used by readers to measure a company's efficiency of selling its products and services.

Adjusted EBITDA and Adjusted EBITDA Margin

Adjusted EBITDA is defined as net income (loss) before interest, taxes, depreciation and amortization less net rent expense on premise leases accounted for as right-of-use leases under IFRS 16, and before share-based compensation expense, time-based earnout expense, foreign exchange gains and losses, change in fair value of financial assets and liabilities, impairment charges, transaction, restructuring and integration costs and gains/losses that are not reflective of ongoing operating performance.

Adjusted EBITDA Margin is defined as Adjusted EBITDA as a percentage of total revenue.

WELLSTAR considers Adjusted EBITDA and Adjusted EBITDA Margin to be financial metrics that measure cash flow that WELLSTAR can use to fund working capital requirements and fund future growth initiatives. Adjusted EBITDA and Adjusted EBITDA Margin should not be considered alternatives to net income (loss), cash flow from operating activities or other measures of financial performance defined under IFRS.

Free Cash Flow

Free Cash Flow is defined as Adjusted EBITDA less capital expenditures (including hosting payments treated as right-of-use leases under IFRS), cash interest and cash taxes. Free Cash Flow should not be considered in isolation or as an alternative to cash flows from operating activities or other measure prepared in accordance with IFRS.

Reconciliation of Non-IFRS Measures

Reconciliation of Net Income to Adjusted EBITDA

 2026
 2025
 2024
CAD in 000sQ1 Q1FY25  Net loss(8,211) (1,223)(6,195) (3,963)Depreciation and amortization2,296  1,560 6,728  5,511 Interest expense, net5,768  1,850 7,705  510 Income tax expense550  (573)1,355  236 EBITDA per financial statements403  1,614 9,593  2,294 Adjustments:      Share-based compensation1,784  156 2,241  2,398 Foreign exchange (gain) loss3  1 (12) 8 Time-based earnout expense344  1,161 5,111  5,080 Gains (losses) on fair value of financial assets833  - (1,404) - Rent expense on right-of-use assets(169) (124)(623) (516)M&A transaction and integration costs396  553 1,190  168 Restructuring and other costs287  172 399  419 Adjusted EBITDA3,881  3,533 16,495  9,851        Revenue21,521  17,046 72,227  44,716 Adjusted EBITDA Margin %18.0% 20.7%22.8% 22.0%            Reconciliation of Adjusted EBITDA to Free Cash Flow

 2025
 2024
CAD in 000s   Adjusted EBITDA16,495  9,851 Adjustments:   Capital expenditures(4,825) (2,496)Hosting lease payments-  (880)Cash tax payments(2,089) (780)Free Cash Flow9,581  5,695        Reconciliation of Revenue to Adjusted Gross Profit

 2026 2025 2024CAD in 000sQ1 Q1FY25  Revenue21,521 17,04672,227 44,716Cost of sales (excluding depreciation and amortization)5,361 4,56718,274 9,042Adjusted Gross Profit16,160 12,47953,953 35,674        Forward-Looking Statements

This news release may contain “Forward-Looking Information” within the meaning of applicable Canadian securities laws, including, without limitation: the terms and conditions of the Transaction and the Concurrent Financing, including with respect to the terms of the Subscription Receipts issued pursuant thereto; use of proceeds from the Concurrent Financing; expectations regarding the 818 Consolidation and the WELLSTAR Consolidation, including the terms and timing thereof; expectations regarding the timing of closing of the Transaction and the Concurrent Financing; the expected benefits of the Transaction; expectations regarding the Resulting Issuer’s share capital; the terms and conditions of the Shared Services Agreement, Investor Rights Agreement and Coattail Agreement; future plans of the Resulting Issuer; and the proposed directors and senior management of the Resulting Issuer. Forward-Looking Information are necessarily based upon a number of estimates and assumptions that, while considered reasonable by management, are inherently subject to significant business, economic and competitive uncertainties, and contingencies. Forward-Looking Information generally can be identified by the use of forward-looking words such as “may”, “should”, “will”, “could”, “intend”, “estimate”, “plan”, “anticipate”, “expect”, “believe” or “continue”, or the negative thereof or similar variations. Forward-Looking Information involve known and unknown risks, uncertainties and other factors that may cause future results, performance, or achievements to be materially different from the estimated future results, performance or achievements expressed or implied by the Forward-Looking Information and the Forward-Looking Information are not guarantees of future performance. WELL’s comments expressed or implied by such Forward-Looking Information are subject to a number of risks, uncertainties, and conditions, many of which are outside of WELL ‘s control, and undue reliance should not be placed on such information. Forward-Looking Information are qualified in their entirety by inherent risks and uncertainties, including without limitation: satisfaction or waiver of all applicable conditions to the completion of the Transaction (including receipt of all necessary shareholder, stock exchange and regulatory approvals or consents, and the absence of material changes with respect to the parties and their respective businesses) and the Concurrent Financing; ability to close the Concurrent Financing on the proposed terms or at all; the synergies expected from the Transaction not being realized; business integration risks; market for the Resulting Issuer SVS; market price of the Resulting Issuer SVS; the Amalgamation Agreement may be terminated by WELLSTAR or 818 in certain circumstances; WELLSTAR and 818 may incur costs even if the Transaction or Concurrent Financing is not completed; the requirements that accompany being a publicly traded company may put a strain on the Resulting Issuer’s resources, divert attention from management, and adversely affect its ability to maintain and attract management and qualified board members; uncertainty of use of proceeds; liquidity risk; leverage risk; and share price fluctuations; adverse market conditions and the ability to complete acquisitions; risks inherent in the primary healthcare sector in general; continued patient and consumer demand for WELLSTAR’s products and services; regulatory and legislative changes; that future results may vary from historical results; the inability to obtain any requisite future financing on suitable terms; any inability to realize the expected benefits and synergies from acquisitions; that market competition may affect the business, results and/or financial condition of WELLSTAR and other risk factors identified in documents filed by WELL under its profile at www.sedarplus.com, including its most recent Annual Information Form. Except as required by securities laws, 818, WELL and WELLSTAR do not assume any obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise.

This news release contains future oriented financial information (collectively, “FOFI”) about WELLSTAR, all of which are subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above paragraph. In addition, the FOFI has been prepared based on a number of assumptions, including assumptions regarding: the Company’s 2026 outlook; continued demand for the Company’s product and service offerings; continued growth in subscription and recurring revenue; expected levels of new customer acquisition, customer retention and renewal rates; anticipated expansion revenue from existing customers through upselling and cross-selling activities; the implementation of planned pricing increases across certain products and services; the successful negotiation, execution and closing of one or more potential tuck-in acquisition transactions currently under letter of intent; the timing and success of new product releases, enhancements and go-to-market initiatives; the continued availability, reliability and performance of third-party technology infrastructure and service providers; no significant cybersecurity incidents, service disruptions or data breaches; continued competitive intensity in the markets in which the Company operates; no significant legal, regulatory or compliance developments affecting the Company’s business; and no significant deterioration in general economic conditions. The actual financial results of WELL may vary from the amounts set out herein and such variation may be material. WELL and its management believe that the FOFI has been prepared on a reasonable basis, reflecting management’s best estimates and judgments. However, because this information is subjective and subject to numerous risks, it should not be relied on as necessarily indicative of future results. Except as required by applicable securities laws, WELL undertakes no obligation to update such FOFI. FOFI contained in this news release was made as of the date hereof and was provided for the purpose of providing further information about WELL’s anticipated future business operations on an annual basis. Readers are cautioned that the FOFI contained in this news release should not be used for purposes other than for which it is disclosed herein.

Neither the TSX, the TSXV nor its Regulation Services Provider (as that term is defined in policies of the TSX or TSXV, respectively) accepts responsibility for the adequacy or accuracy of this release.

Completion of the Transaction is subject to a number of conditions, including but not limited to, TSXV acceptance. Where applicable, the Transaction cannot close until the required shareholder approval is obtained. There can be no assurance that the Transaction will be completed as proposed or at all.

Investors are cautioned that, except as disclosed in the filing statement to be prepared in connection with the Transaction, any information released or received with respect to the Transaction may not be accurate or complete and should not be relied upon.

For further information:
Pardeep Sangha
Vice President Investor Relations
[email protected]
604-628-7266

___________________________
1 The $10.00 issue price has been presented to reflect an approximate $1.03 subscription price (prior to the WELLSTAR Consolidation).

Investors who sat out the Space Exploration Technologies (SPCX 4.92%) initial public offering had a variety of reasons for doing so.

They could have had concerns about valuation, believed that the business is overly complicated, or worried about the cost of building out artificial intelligence (AI) infrastructure in space. Some investors may also be interested in investing in SpaceX but want to see it trade for a little longer, waiting for it to find a stable price range before making a move.

Those same investors, however, may be surprised to find that SpaceX could still end up in their 401(k)s. Whether you're concerned or just curious, there's a simple way to find out if SpaceX is in your retirement account.

Image source: Getty Images.

First steps To learn if SpaceX is in your 401(k), you can log in to the website of your retirement plan provider to access your account. When looking at your portfolio, you can see the exchange-traded funds (ETFs), target-date funds, or mutual funds that the 401(k) is invested in.

Depending on your retirement plan provider, you may be able to view the holdings of those investments directly in your account. If not, you can find information online.

After reviewing the holdings, you'll know whether SpaceX is in your 401(k).

Where SpaceX is included On June 26, SpaceX was added to the Russell 1000 index, which tracks the performance of the 1,000 largest U.S. publicly traded companies. If an ETF that tracks the Russell 1000 index, like the iShares Russell 1000 ETF, is in a 401(k), that means the 401(k) has exposure to SpaceX.

Also, on July 7, SpaceX will be included in the Nasdaq-100, which tracks the largest nonfinancial companies listed on the Nasdaq Stock Market. Included in that index are Apple, Intel, Microsoft, Amazon, and Nvidia. The Invesco QQQ Trust is a popular ETF that tracks the Nasdaq-100, so if Invesco QQQ is in a 401(k), that 401(k) also has exposure to SpaceX.

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Is there a massive cause for concern? For investors worried about SpaceX in their 401(k), the good news is that it was not fast-tracked for inclusion in the S&P 500. If a 401(k) account has an investment that tracks the S&P 500, there is no exposure to SpaceX.

In addition, even if there is an investment in your 401(k) that now or soon will hold SpaceX, it will likely play a relatively small role within that ETF. Circling back to that iShares Russell 1000 ETF, SpaceX's weight within the ETF is 0.1%, while Nvidia's weight is 6.5%. That's just one example, but it shows the limited impact SpaceX has on that ETF.

If SpaceX faces a prolonged slump, it will have only a minimal impact on an ETF, especially one with hundreds of thousands of holdings.

HomeStock IdeasIPO AnalysisCommunication Services

SummarySpaceX’s fast-tracked inclusion into the Nasdaq-100 is expected to trigger around US$4.3 billion of compulsory passive buying, but historical precedents suggest such events can evolve into “sell-the-news” opportunities as early institutional buyers distribute shares to index funds.Past Nasdaq-100 additions such as Palantir Technologies and Strategy experienced medium-term pullbacks of 23% and 15%, respectively, after their index inclusions, highlighting the risk of profit-taking once passive fund demand is absorbed.Despite its dominant AI and Starlink narrative, SpaceX’s valuation remains exceptionally demanding, trading above 115x trailing sales while still posting a net loss, leaving little room for operational disappointments or tighter financial conditions.Technically, bearish momentum is building, with the SpaceX perpetual contract forming a bearish flag pattern and weakening RSI momentum. A break below 152.60 would reinforce the bearish outlook, while only a sustained move above 176.95 would negate the downside scenario. Getty Images

By Kelvin Wong

Massive $4.3 billion passive wave arrives via fast-tracked inclusion Following its record-breaking Initial Public Offering (IPO) on June 12, 2026, which raised a historic $75 billion at an issuance price of $135 per share, aerospace and AI giant SpaceX (

1.08K Followers

Just about everyone had their eyes on the Space Exploration Technologies' (SPCX 4.92%) initial public offering (IPO), which ended up being the largest-ever IPO in market history. For weeks, nobody could talk about anything else, and now that the honeymoon stage is over, and the confetti swept away, gravity is bringing the stock back down to Earth.

After hitting a lifetime high of about $225 in mid-June, SpaceX stock now trades in the mid-$150s to the low $160s -- a drop of about 30%. Despite the dip, however, I would not call SpaceX a screaming buy -- or even a murmuring one.

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Part of that is because of SpaceX's valuation. With a market capitalization of over $2 trillion, SpaceX still trades at more than 100 times trailing revenue. That's extraordinarily high. For context, Nvidia trades at roughly 19 times sales, Microsoft around 9, and Amazon around 3.5.

Investors are already paying for several years of aggressive growth, and it's unclear yet what the space stock is capable of delivering. SpaceX itself says its market opportunity is worth about $28.5 trillion. But that's an estimate, not a solid figure, and since it comes from SpaceX's own calculations, I'd take it with a grain of salt.

Image source: Getty Images.

At the time of writing (July 3), the average price target for SpaceX is about $188, representing 17.5% upside. This average will likely change on July 7, the day the "quiet period" for underwriters involved in SpaceX's IPO, which included a slew of big-name banks, officially ends. Each of these banks' analysts will weigh in on what they think SpaceX is worth, which could cause the price to jump higher or sag.

Regardless of what other analysts predict, my opinion is the same: SpaceX has an exciting business, but the price-to-sales ratio is too high for my tastes. Most long-term investors, I think, should wait for more clarity before stepping in.

Steven Porrello has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

Key Takeaways SPCX rebranded xAI as SpaceXAI as it expands beyond launch services and Starlink.SpaceX plans AI compute satellites by 2028 and is growing its Colossus data center platform.SpaceX's AI push adds margin uncertainty as Starship remains key to several growth plans. Space Exploration Technologies Corp. (SPCX - Free Report) is increasingly positioning artificial intelligence (AI) as its next major growth driver and has officially rebranded xAI as SpaceXAI.

The Elon Musk-led company had acquired xAI and its social media platform X in February this year. SpaceX is now aiming to evolve into a vertically integrated AI infrastructure company by combining advanced AI models, large-scale computing capabilities and satellite connectivity under one umbrella. The transformation is likely to unlock a significantly larger addressable market while diversifying the company's revenue base beyond launch services and Starlink.

SpaceXAI: The X-Factor?As part of the transition, xAI's flagship chatbot, Grok, will now operate under the SpaceXAI brand. The integration is expected to strengthen collaboration between the company's AI software, computing infrastructure and satellite network, creating a differentiated ecosystem that few competitors can match.

The company plans to deploy AI compute satellites as early as 2028, effectively creating space-based data centers capable of delivering large-scale computing capacity. This initiative leverages SpaceX's leadership in satellite deployment while addressing the growing demand for AI computing resources. Alongside its satellite ambitions, SpaceX continues to expand its Colossus data center platform, strengthening its position in AI infrastructure.

SpaceX has also entered into a definitive agreement to acquire Anysphere in an all-stock deal valued at $60 billion. The buyout of a startup firm behind the rapidly growing AI coding assistant Cursor is primarily aimed at gaining a firmer footing in the enterprise AI market. The acquisition gives SpaceX exposure to a high-growth software business while strengthening its AI capabilities. The buyout adds a widely adopted developer platform that could complement the company's growing technology portfolio. The transaction is likely to be completed by the third quarter of 2026, subject to the fulfillment of mandatory closing conditions and regulatory approvals.

Competitive EdgeSpaceX has transformed the launch industry through its reusable Falcon 9 rockets, significantly reducing launch costs and increasing mission frequency. The company now conducts more launches annually than any of its global competitors, giving it a commanding share of the commercial launch market.

The satellite Internet platform, Starlink, has expanded rapidly, serving millions of customers across residential, enterprise, aviation and maritime markets with an active network of more than 10,400 satellites in low Earth orbit (LEO). Unlike the launch business, which generates project-based revenue, Starlink provides recurring subscription income and potentially higher long-term margins. The business also benefits from a powerful competitive advantage. SpaceX can launch its own satellites at a fraction of the cost of its competitors, allowing Starlink to expand its network faster and more efficiently. As global demand for reliable broadband connectivity increases, Starlink's growth prospects remain solid.

Price PerformanceSpaceX has soared 18.8% since its IPO compared with the industry’s growth of 146.4% over the past month. It has outperformed peers like Verizon Communications Inc. (VZ - Free Report) and AT&T Inc. (T - Free Report) over this period. While Verizon has declined 7.4%, AT&T is down 8.6%. 

SPCX Stock Price Performance Since IPO

Image Source: Zacks Investment Research

Likely PitfallsHowever, SpaceX is scaling several capital-intensive platforms simultaneously. The company is investing heavily in COLOSSUS, COLOSSUS II, Grok, enterprise offerings, compute services and future orbital AI compute. Management expects a multi-year investment cycle until sustained positive segment adjusted EBITDA is realized. The strategy may create a cost advantage if compute, energy and launch assets integrate as planned. Until then, AI adds uncertainty to margins, capital needs and consolidated earnings quality.

Moreover, Starship is central to the long-term strategy, but it remains a development platform. SpaceX has completed 12 Starship flight tests, and the next milestone is payload delivery to orbit in the second half of 2026. The investment case assumes Starship can lower cost to orbit, increase payload capacity and support V3 satellites, Starlink Mobile V2, AI compute satellites and lunar missions. Any delay in reusability, cadence, payload reliability or regulatory clearance would affect several growth vectors at once. This risk is not limited to the Space segment because Connectivity and AI also rely on future launch throughput to reach their planned scale.

Estimate Revision TrendThe Zacks Consensus Estimate for SpaceX’s 2026 earnings has narrowed from a loss of $1.12 per share to a loss of 96 cents over the past seven days, while the same for 2027 has narrowed from a loss of 11 cents to a loss of 9 cents. The positive estimate revision depicts bullish sentiments about the stock’s growth potential.

Image Source: Zacks Investment Research

End NoteSpaceX is steadily transforming from a pure-play aerospace company into a diversified AI infrastructure leader. Its aggressive investments in AI computing, the integration of SpaceXAI, expanding enterprise partnerships and plans for space-based data centers underscore management's conviction that AI will be a key driver of future growth.

Although the AI segment is likely to remain under pressure in the near term due to elevated investment levels, the company's long-term growth prospects appear increasingly tied to the rapid expansion of the global AI infrastructure market. While high operating costs and execution risks warrant attention, SpaceX appears well-positioned to benefit from the secular growth of the space economy. Those who already own the stock can hold onto it, while new investors may wait for a better entry point.

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

Memory and storage prices are climbing sharply, which means consumers will be paying more for many tech products. Apple (AAPL +0.35%) recently said that it was raising the price of some iPad and MacBook products to offset rising costs. While this may seem like it's bad news for Apple, the supply shortage may actually help the business in the long run and be a positive catalyst for the stock. Here's why.

Image source: Getty Images.

Apple's products may suddenly look more affordable Earlier this year, Apple introduced a series of lower-priced products that aimed at gaining market share by appealing to a broader customer base. The MacBook Neo and iPhone 17e were among the most notable. The tech company said its MacBook Neo was its "most affordable laptop ever." And the iPhone 17e offers consumers a cost-effective way to upgrade and access the company's latest and greatest artificial intelligence capabilities.

By introducing lower-priced products, Apple has suddenly narrowed the gap between its devices and those of cheaper alternatives. And as other companies need to raise prices significantly due to rising memory and storage costs, Apple may not feel as much pressure to do so, given its strong margins. While it has announced price increases for some products, including the MacBook Neo, it has held off on raising iPhone prices for the time being. Other companies that don't have Apple's financial might may not have that same luxury. And as the gap between Apple's products and lower-priced options diminishes, consumers may be more inclined to simply buy an Apple product.

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The stock has been doing just fine this year, but can it continue rising? Apple's stock is up 15% since the start of the year, as concerns about rising prices don't appear to be weighing on the business. While higher prices may negatively impact demand for some of its premium-priced products, there's still hope that Apple might be able to capture greater sales on its lower-priced products and, in doing so, potentially attract more consumers into its ecosystem, leading to more future growth.

The business still looks to be in strong financial shape, but with a price-to-earnings multiple of 38, this is not a cheap stock to own, given the uncertainty amid both challenging economic conditions and rapidly rising memory and storage prices. While it may be a solid long-term investment for investors who just want to buy and hold for years, I'd hold off on buying the stock for now, as I think there are better options in the tech sector today.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Apple. The Motley Fool has a disclosure policy.

At an internal Meta town hall on July 2, 2026, CEO Mark Zuckerberg told employees that AI agent development over the prior four months “hasn’t really accelerated in the way that we expected,” per a recording heard by Reuters. He added that the company’s reorganization was not as “clean” as planned and that its bets on the new structure “haven’t come to fruition yet,” though he expects meaningful benefits within three to six months.

The admission came six weeks after Zuckerberg’s May layoff memo declared “AI is the most consequential technology of our lifetimes” and that “the companies that lead the way will define the next generation.”

The $145 billion Contradiction Meta Platforms (NASDAQ:META | META Price Prediction) has committed to $125 billion to $145 billion in 2026 capex, more than double its $72.215 billion 2025 outlay. In April, Meta inked a $21 billion expanded AI infrastructure deal with CoreWeave through 2032, on top of a 6-gigawatt AMD GPU partnership signed in February. And yet, last week it was reported Meta will rent out capacity much like SpaceX (Nasdaq: SPCX). Bulls have cheered the announcement, noting it gives Meta Platforms more flexibility and could raise substantial revenue in the year ahead.

Bears point ot the fact Meta has enough compute its not able to effectively use it on its products. That could show the company is reaching the limits of AI producing strong ROIC when applied to products from Instagram, Facebook, and WhatsApp. In the past Meta has managed to continue driving engagement across its product suite (and advertising solutions) through increased AI usage.

Shares trade near $584, down roughly 11.5% year to date and about 18% over the past 12 months, underperforming megacap peers. If AI “hasn’t really accelerated,” what is $145 billion buying?

Who Got Cut, Who Got Protected Meta notified roughly 8,000 employees in May 2026, about 10% of its then-80,000 person workforce. Per CNBC reporting from May 20, 2026, cuts hit integrity teams, cybersecurity, content design, and Reality Labs hardest, while AI infrastructure, foundation models, and AI monetization teams were protected. Another 7,000 employees were redirected into newly created AI-focused teams, and 6,000 planned hires were cancelled.

US workers received 16 weeks severance plus two additional weeks per year of tenure, with health insurance extended 18 months. Zuckerberg told staff: “Success isn’t a given.” CFO Susan Li added on the Q1 call that executives “don’t really know what the optimal size of the company will be in the future.”

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

The Human Cost One Meta policy employee told Wired that morale is low because the US workforce feels it is “being used to train the AI models that will replace them.” Meta’s overall employee rating on Blind has fallen 25% from its Q2 2024 peak, with culture ratings down 39%. Median total compensation slipped by nearly $30,000.

The Counterargument Meta’s Chief AI Officer Alexandr Wang took to X to defend Meta’s efforts and layer on additional context to Zuckerberg’s quote:

First, Mark was clearly talking about the industry’s progress on agentic capabilities on the whole.

But, while we’re on the topic: Our next Muse Spark update is coming soon. Big improvements in coding and agentic capabilities to be more competitive with other leading models.… https://t.co/uTjx8sZM2A

— Alexandr Wang (@alexandr_wang) July 3, 2026

Wang also claimed that while Meta has lagged rivals, its upcoming model (code-named Watermelon) will equal 5.5 from OpenAI.  If Meta can catch up to other ‘frontier labs’ that have made major investments into areas like coding and agentic capabilities, it would go a long way to soothing negative investor sentiment.

An Industry Pattern Meta joins a broader industry trend. Layoffs.fyi counts roughly 110,000 layoffs at 137 tech companies in 2026 so far, after about 125,000 cuts in all of 2025. Goldman Sachs pegs AI-driven layoffs at more than 16,000 payroll cuts per month industry-wide. Cisco cut roughly 4,000 employees the same week as Meta, and Microsoft offered buyouts to about 7% of its US workforce in April.

Zuckerberg’s remark appears to be the first time a major CEO has publicly conceded the acceleration isn’t happening on schedule. Reality Labs alone lost $4.03 billion in Q1 2026. The core ad engine grew revenue 33.08% year over year, but expenses climbed 35%.

If the three-to-six-month window Zuckerberg cited slips, what happens to remaining employees, signed capex commitments, and a stock that has already given back a fifth of its value?

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

Contact [email protected] for any questions or corrections.

Tesla (TSLA - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.

Shares of this electric car maker have returned +2.7% over the past month versus the Zacks S&P 500 composite's +2.1% change. The Zacks Automotive - Domestic industry, to which Tesla belongs, has gained 6.6% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

For the current quarter, Tesla is expected to post earnings of $0.46 per share, indicating a change of +15% from the year-ago quarter. The Zacks Consensus Estimate has changed +1.4% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $2.01 points to a change of +21.1% from the prior year. Over the last 30 days, this estimate has changed +2.1%.

For the next fiscal year, the consensus earnings estimate of $2.58 indicates a change of +28.4% from what Tesla is expected to report a year ago. Over the past month, the estimate has changed +0.9%.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. 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 Tesla.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For Tesla, the consensus sales estimate for the current quarter of $24.47 billion indicates a year-over-year change of +8.8%. For the current and next fiscal years, $101.25 billion and $113.49 billion estimates indicate +6.8% and +12.1% changes, respectively.

Last Reported Results and Surprise HistoryTesla reported revenues of $22.39 billion in the last reported quarter, representing a year-over-year change of +15.8%. EPS of $0.41 for the same period compares with $0.27 a year ago.

Compared to the Zacks Consensus Estimate of $21.92 billion, the reported revenues represent a surprise of +2.12%. The EPS surprise was +13.89%.

Over the last four quarters, Tesla surpassed consensus EPS estimates three times. The company topped consensus revenue estimates three times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Tesla is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Tesla. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Lending support to his choice, Wells Fargo analyst Ken Gawrelski, on July 2, maintained Meta Platforms with an Overweight rating and raised the price target from $765 to $767.

Supporting his view, Morgan Stanley analyst Brian Nowak maintained Alphabet’s Overweight rating on June 30. He also raised the price target from $375 to $415.

Don’t forget to check out our premarket coverage here

Jim Lebenthal, partner and chief market strategist at Cerity Partners, picked Apollo Global Management, Inc. (NYSE:APO).

Apollo said it will release financial results for the second quarter on Tuesday, Aug. 4, before the opening bell. Analysts expect the asset manager to report quarterly earnings at $2.21 per share on revenue of $1.35 billion.

Joseph M. Terranova, senior managing director for Virtus Investment Partners, recommended Apple Inc. (NASDAQ:AAPL).

Apple recently raised prices on several hardware products, while leaving iPhone pricing unchanged, citing tightening memory and storage supplies as AI infrastructure spending accelerates.

Price Action Meta shares gained 3% to close at $600.29 on Monday. Alphabet shares rose 1.8% to settle at $366.46 during the session. Apollo Global shares gained 3% to close at $122.17 on Monday. Apple shares rose 1.3% to settle at $312.66 during the session. Photo via Shutterstock

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Amazon logo outside an Amazon warehouse in Manchester, Britain, October 28, 2025. REUTERS/Phil Noble/File Photo Purchase Licensing Rights, opens new tab

CompaniesJuly 7 (Reuters) - Amazon.com (AMZN.O), opens new tab is looking to raise at least $25 billion ​through a U.S. dollar bond sale, Bloomberg News reported ‌on Tuesday, in the company's latest push to fund its hefty AI investments.

Tech companies have been tapping debt markets and launching equity sales to ​fund their costly AI infrastructure build-out. Big Tech, including ​Amazon, Alphabet (GOOGL.O), opens new tab, Microsoft (MSFT.O), opens new tab and Meta (META.O), opens new tab, are expected to spend ⁠more than $700 billion on AI this year.

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The size of Amazon's ​offering could increase depending on investor demand, Bloomberg said, citing ​people familiar with the matter. Amazon did not immediately respond to a Reuters request for comment.

A regulatory filing by the tech giant from earlier ​in the day showed it has filed for an eight-part ​offering of floating and fixed-rate notes.

Turning to debt and equity offerings for capital ‌marks ⁠a shift for the Silicon Valley giants, who have typically relied on their cash reserves to fund their investments. The recent debt offerings have seen strong investor appetite.

Google-parent Alphabet last month ​said it would ​raise some $85 ⁠billion in an upsized equity sale. Facebook-parent Meta earlier this year sold investment-grade bonds worth $25 billion, ​following a $30 billion bond sale in October, which ​was ⁠the company's biggest ever.

Amazon said in its exchange filing that Barclays, Goldman Sachs, J.P. Morgan and Morgan Stanley are the joint ⁠book-running managers ​for the offering.

The company had in ​March targeted a $37 billion raise in a heavily oversubscribed 11-part bond sale.

Reporting by ​Deborah Sophia in Bengaluru; Editing by Shilpi Majumdar and Arun Koyyur

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

watch now

Amazon plans to raise at least $25 billion through an eight-part bond sale, as it looks to continue its massive artificial intelligence buildout, sources told CNBC's David Faber.

The company has also shared with its underwriters that it won't issue any more debt this year, according to people familiar with the matter, who asked not to be named because the details are private.

Amazon disclosed plans for the capital raise in a filing with the SEC on Tuesday, but it didn't disclose the dollar amount.

Bloomberg was first to report the value of Amazon's bond sale.

The debt sale comes after Amazon raised roughly $54 billion in bonds earlier this year in the U.S. and Europe, followed by a $10 billion bond raise in Canada in June.

Tech companies have turned to the capital markets to help fund their aggressive spending plans on AI infrastructure. Nvidia, Oracle, Alphabet and Meta have also announced debt raises and issued stock in recent months.

Amazon has projected its capital expenditures will reach $200 billion this year, up from $131 billion in 2025, with most of the spending going toward data centers, chips and other equipment. CEO Andy Jassy has tried to reassure investors skeptical of its plans by arguing AI is a "once-in-a-lifetime opportunity" that requires big bets.

An Amazon spokesperson told CNBC in a statement that proceeds from the latest bond sale will be used for general corporate purposes, which could include supporting investments, funding future capital expenditures and debt repayment.

"We regularly evaluate our operating plan and make financing decisions, like issuing bonds, accordingly," the spokesperson said.

— CNBC's Jim Forkin contributed reporting to this story.

Read more CNBC tech newsMeta's push into cloud computing means Wall Street has to prepare for lower marginsChip stocks that notched record rallies in second quarter start Q3 with a dudPlayStation will end physical disc production for new games in 2028Employers who laid off workers citing AI are already starting to regret it

Nokia stock is among today’s weakest performers. Why are NOK shares down? What Is Nokia’s Catalyst with Orange Belgium?Orange Belgium has selected Nokia as the sole supplier to modernize its transport infrastructure by converging fixed and mobile networks into a unified optical transport network across Belgium, using Nokia’s AI-powered WaveSuite automation platform. The multi-year build is designed to improve resilience, security, and scalability as bandwidth demand rises from AI, remote work, video streaming, gaming, and cloud services.

Nokia is also leaning into automation partnerships that traders are treating as a "prove-it" pipeline for incremental orders, with its Autonomous Networks Fabric positioned around "Level 4" autonomy and targeted for availability later this year. In parallel, Nokia is building six Gemini-powered agents aimed at telecom workflows, with a claim that troubleshooting time can drop 50% to 80%.

NOK Technical Analysis: Key Levels To WatchThe bigger-picture trend is still constructive after a 143.86% run over the past 12 months, and the stock remains well above its longer-term baselines (about 8.8% above the 100-day SMA and about 39.9% above the 200-day SMA). But the near-term tape is clearly in "pullback mode," with shares trading about 11.8% below the 20-day SMA and about 12.5% below the 50-day SMA.

The moving-average stack is mixed: the 20-day SMA is below the 50-day SMA (a bearish near-term crossover), while the 50-day SMA remains above the 200-day SMA (the golden cross that occurred in October 2025 is still intact). That combination often reads as a longer-term uptrend that’s cooling off and trying to find a new base.

For momentum, MACD is below its signal line and the histogram is negative, which points to fading upside pressure versus the prior upswing unless buyers can reclaim key moving averages. In plain terms, MACD compares faster and slower trend signals—when it’s below the signal line, momentum is typically weakening rather than building.

Key Support: $10.00 — a nearby round-number level that can act as a decision point if the pullback extends What Is Nokia’s Business Model?Nokia is a networking equipment vendor focused primarily on supporting wireless networks and, to a growing extent, Internet Protocol and optical systems. It operates across mobile infrastructure (wireless core and enterprise wireless), network infrastructure (IP, optical, and fixed-network gear like routing/switching and fiber access), and a portfolio segment that houses businesses viewed as less central longer term.

That mix matters for the Orange Belgium win because it’s directly tied to optical transport and automation—areas where carriers are trying to simplify operations while scaling capacity. The project’s stated support for traffic from 1G to 400G and beyond also fits the broader push to upgrade backbone networks for AI-era bandwidth needs.

Nokia Benzinga Edge Rankings OverviewBelow is the Benzinga Edge scorecard for Nokia, highlighting its strengths and weaknesses compared to the broader market:

The Verdict: Nokia’s Benzinga Edge signal reveals a momentum-led profile with supportive quality, but only middling value. For longer-term bulls, the setup is most compelling if the stock can stabilize above key support and then work back toward the 50-day area without breaking the longer-term uptrend.

NOK Price Action: Tuesday Premarket ActivityNOK Stock Price Activity: Nokia shares were down 3.92% at $12.02 during premarket trading on Tuesday, according to Benzinga Pro data.

Image: Shutterstock

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Berkshire Hathaway B (BRK.B - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this company have returned +4%, compared to the Zacks S&P 500 composite's +2.1% change. During this period, the Zacks Insurance - Property and Casualty industry, which Berkshire Hathaway B falls in, has gained 5.3%. The key question now is: What could be the stock's future direction?

While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Berkshire Hathaway B is expected to post earnings of $5.53 per share for the current quarter, representing a year-over-year change of +7%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

For the current fiscal year, the consensus earnings estimate of $20.82 points to a change of +1% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $21.59 indicates a change of +3.7% from what Berkshire Hathaway B is expected to report a year ago. Over the past month, the estimate has remained unchanged.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Berkshire Hathaway B is rated Zacks Rank #2 (Buy).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of Berkshire Hathaway B, the consensus sales estimate of $95.3 billion for the current quarter points to a year-over-year change of +3%. The $385.6 billion and $404.9 billion estimates for the current and next fiscal years indicate changes of +3.8% and +5%, respectively.

Last Reported Results and Surprise HistoryBerkshire Hathaway B reported revenues of $93.68 billion in the last reported quarter, representing a year-over-year change of +4.4%. EPS of $5.25 for the same period compares with $4.47 a year ago.

Compared to the Zacks Consensus Estimate of $95.1 billion, the reported revenues represent a surprise of -1.5%. The EPS surprise was +8.92%.

Over the last four quarters, Berkshire Hathaway B surpassed consensus EPS estimates two times. The company topped consensus revenue estimates times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Berkshire Hathaway B is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Berkshire Hathaway B. However, its Zacks Rank #2 does suggest that it may outperform the broader market in the near term.

Over the past year, quantum computing stocks have emerged as a compelling complement to mainstream opportunities in the artificial intelligence (AI) ecosystem. While classical AI systems have demonstrated impressive capabilities in pattern recognition and generative tasks, many high-value problems remain computationally strained.

Quantum machines leverage properties known as superposition and entanglement to better explore solutions in more sophisticated applications. This opens the door to hybrid quantum-classical environments that could usher in waves of better data, tighter constraints, and new algorithms for AI.

According to an analysis by management consulting firm McKinsey & Company, quantum AI could generate between $1.3 trillion and $2.7 trillion in economic value by 2035. McKinsey sees quantum computing playing a critical role across energy and materials, pharmaceuticals, financial services, and travel and logistics, as well as advanced electronics and defense systems.

In my view, three companies stand out in the quantum AI arena for distinct reasons: Nvidia (NVDA 1.32%), IonQ (IONQ 7.00%), and Quantinuum (QNT 6.88%). Let's dig into how each of these companies is involved with quantum computing and assess their respective investment profiles.

Image source: Getty Images.

Nvidia: The ecosystem enabler of tomorrow Nvidia dominates classical AI thanks to its one-two punch, featuring a deep roster of graphics processing unit (GPU) architectures and software system CUDA. The company's primary quantum efforts revolve around cuQuantum, a toolkit that accelerates the simulation of quantum circuits on Nvidia hardware. This design allows researchers to prototype next-generation algorithms without requiring capital-intensive physical quantum processors.

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While quantum computing is a negligible contributor to Nvidia's overall business today, the company's approach is to quietly become the broader foundation for hybrid classical-quantum systems in the long run. As quantum hardware matures, demand for high-performance classical compute -- Nvidia's expertise -- should rise sharply as these components help handle critical variables such as error correction and processing.

In essence, Nvidia is uniquely positioned to become the backbone that drives quantum progress and further demand for its core data center products, rather than needing to build an entirely separate business line.

IonQ: A pure play provider across the quantum stack IonQ provides direct exposure to quantum computing, one of the few pure-play opportunities, alongside peers such as Rigetti Computing and D-Wave Quantum. The company's trapped-ion systems are accessible through major cloud platforms such as Amazon Braket, Microsoft Azure, and Alphabet's Google Cloud.

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Over the past couple of years, IonQ has pursued an aggressive acquisition strategy to build a vertically integrated quantum platform. The rationale behind these deals is to strengthen its capabilities across ion-trap scaling, quantum networking, secure communications, sensing, security, and manufacturing.

While this approach is compelling, IonQ's valuation profile reflects extraordinarily high expectations amid revenue growth, though the company remains fairly early-stage and unprofitable.

IONQ PS Ratio data by YCharts

Quantinuum: A new quantum computing IPO stock Quantinuum just went public last month. The company was formed through the merger of Honeywell Quantum Solutions and Cambridge Quantum.

Quantinuum's products and application tools are best suited for chemistry, cybersecurity, and machine learning. Given its reach among critical use cases, it's not surprising that Quantinuum is backed by notable strategic investors, including JPMorgan Chase, Amgen, Mitsui, and Nvidia. This institutional support contrasts with that of smaller pure-play peers like IonQ, Rigetti, D-Wave, and Quantum Computing Inc.

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While it's still early innings for quantum computing, I think Quantinuum's diversified backing offers a more stable investment profile among other names in the space as commercialization advances. With that said, I'd expect Quantinuum's stock to be relatively volatile over the next several months as investors digest the company's earnings reports and business updates following its IPO.

JPMorgan Chase is an advertising partner of Motley Fool Money. Adam Spatacco has positions in Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Amgen, Honeywell Technologies, IonQ, JPMorgan Chase, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.

For three weeks in June 2026, the most-talked-about AI company in the world went dark. Then it came back, and a panel of tech veterans started arguing about whether the Trump administration had accidentally handed Anthropic the most valuable brand asset in artificial intelligence. That argument, aired on a recent This Week in Tech episode, is worth taking seriously, because the answer shapes how you think about every eventual AI IPO on the horizon.

What the ban actually did The setup, briefly. On June 9, 2026, the Trump administration barred non-US citizens from using Anthropic’s Mythos and Fable models, which forced the company to shut down globally rather than try to police citizenship at the API layer. Restrictions were lifted June 30. OpenAI’s GPT-5.6 got paused in the same sweep and, as of the panel taping, has not been unpaused.

Leo Laporte framed the whole thing as a political shock, an executive-branch intervention of a type that used to hit defense contractors and now hits chatbots. Alex Stamos, the security analyst, called it “an own goal for the United States,” arguing the practical effect was to shove developers and enterprises toward Chinese models during the blackout. Europe, meanwhile, was reportedly alarmed at a specific asymmetry. Adversaries who already had Mythos access could keep probing US systems while Americans themselves were locked out of the tool.

That is the “disaster” reading. Then Jason Heiner picked up the microphone.

The trillion-dollar brand argument Heiner’s take was the contrarian one, and it is the one investors should stress-test. “The Trump ban was absolutely, it was very good for them,” he said, arguing the shutdown accidentally delivered something the AI safety community has been begging for since 2023, a real pause on a powerful frontier model. More importantly, it cemented Anthropic in the public mind as “the safe AI brand,” a positioning he suggested “could be worth a trillion dollars.”

Consider the demand side. 61% of Americans hold a negative opinion of AI, which means the addressable market for a model that markets itself as the cautious one is enormous and largely untapped. Enterprises buying AI at scale, especially in regulated industries, prioritize the vendor least likely to embarrass them in front of a regulator over the one with the most raw capability. Being the company the White House was willing to switch off is, perversely, an endorsement of that positioning.

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.

You can already see the commercial machinery humming. Microsoft (NASDAQ:MSFT | MSFT Price Prediction) made Anthropic’s Claude models generally available in its Foundry on July 5, 2026, running on Azure infrastructure powered by NVIDIA (NASDAQ:NVDA)’s GB300 Blackwell Ultra GPUs, a partnership Insider Monkey described as a step from AI experimentation to production deployment. The distribution keeps expanding while the safety halo hardens.

What this means for investors watching AI IPOs The frustrating part. Anthropic and OpenAI are privately held, so there is no ticker to click. You cannot buy the trade Heiner is describing. You can only prepare for the moment either company files an S-1, which brings us to the weirder wrinkle in this whole story.

OpenAI researchers reportedly proposed allocating shares to the US government upon going public, and the Financial Times reported the idea could extend to other US AI firms. Laporte’s concern was blunter, worrying policy may hinge on “who’s going to pay the president.” Whether that is fair or not, government equity in a frontier AI lab is a governance structure with no clean precedent, and it makes valuing an eventual IPO genuinely difficult. You are underwriting a company whose largest downside risk (getting switched off) and largest upside catalyst (regulatory moat) are the same phone call.

For now, the tradeable expressions are the picks-and-shovels names, the Nvidias and hyperscalers ferrying Claude to customers. The Anthropic trade itself remains locked behind a private-market door, with a brand that just got a very expensive advertising campaign paid for, in a manner of speaking, by the federal government.

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

Contact [email protected] for any questions or corrections.

A new 5G Advanced Mobility feature, Layer 1/Layer 2 Triggered Mobility (LTM), can reduce the handover interruption time by up to 40 percent. This can significantly increase reliability and resiliency for wireless links and improve user experience especially for latency sensitive services like XR, physical AI and latency critical IoT related services. This sets up the foundation for future generation AI powered enhancements for mobility. The final goal is to achieve zero latency and jitter in highly mobile environments. , /PRNewswire/ -- Ericsson, in collaboration with AT&T and MediaTek, has completed North America's first in‑field trial of Ericsson Low-Latency Mobility supporting Layer 1/Layer 2 (L1/L2) Triggered Mobility (LTM) on the AT&T network powered by Ericsson's Radio Access Network (RAN) technology.

Ericsson Low-Latency Mobility feature set, part of Ericsson's 5G Advanced Critical IoT subscription, shortens interruption time to enable faster, more reliable handovers, delivering a smoother connection for people and equipment on the move. In testing, LTM reduced data interruption during cell change by up to 25 percent versus legacy Layer 3 mobility.

By delivering shorter handover interruptions, LTM supports new real-time applications and emerging use cases including extended reality (XR/VR) and time‑critical communications, as well as immersive video conferencing and cloud applications. For people and enterprises, near seamless mobility is vital for XR and cloud applications, immersive video conferencing, and mission-critical operations; reducing interruption at cell change prevents user frustration, churn, negative user sentiment, safety risks, traffic disruptions, production and equipment outages.

By reducing handover interruption and improving mobility determinism, LTM also strengthens the network foundation required for AI‑driven applications. Many emerging AI workloads—including real‑time XR scene reconstruction, edge‑assisted perception, industrial automation, and connected vehicle analytics—depend on continuous data exchange, low jitter, and predictable latency as devices move. LTM helps ensure these AI‑powered experiences can operate reliably at scale by minimizing mobility‑induced disruption between the device, the edge, and the cloud.

The joint work spanned in-field trials with Ericsson serving as a RAN vendor for this effort. Ericsson has been a main contributor and driver of LTM's development and standardization within 3GPP. The feature is widely viewed as an enabler of more consistent user data rates throughout a device's connection and has the potential to reduce handover failure rates across services.

"This milestone shows how 5G Advanced can translate into a better user experience with truly seamless connectivity needed for extended reality and physical AI," said Mårten Lerner, Head of Networks Strategy & Product Management, Ericsson. "Together with AT&T and MediaTek, we're demonstrating how smoother mobility can help deliver more responsive and reliable services for people and industries that depend on connectivity every moment they are on the move."

"Our work with Ericsson and MediaTek across AT&T and field trials demonstrates that LTM can improve mobility performance where it counts – on the move – so that customers experience more consistent connections for cloud applications and immersive video conferencing today and are ready for next-gen XR tomorrow. This level of mobility consistency is also foundational for AI-enabled services that rely on real-time edge and cloud processing as users and devices move across the network," said Rob Soni, VP RAN Technology, AT&T.

"This collaboration proves how Layer 1/Layer 2 Triggered Mobility helps deliver faster, more reliable handovers and a steadier data rate throughout the device connection, capabilities that are essential for Critical IoT and advanced consumer experiences like XR/VR," said Dr. HC Hwang, General Manager of Wireless Communication Systems and Partnerships at MediaTek.

NOTES TO EDITORS:

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JPMorgan (JPM) enters Q2 earnings season with a favorable setup and the potential for an earnings beat. JPM trades near its all-time high, yet forward P/E and P/B have compressed as earnings estimates outpace price gains. A potential catalyst is an upward revision to NII guidance, reflecting a more hawkish Fed and improved market activity.

Wall Street watches a company's quarterly report closely to understand as much as possible about its recent performance and what to expect going forward. Of course, one figure often stands out among the rest: earnings.

The earnings figure itself is key, of course, but a beat or miss on the bottom line can sometimes be just as, if not more, important. Therefore, investors should consider paying close attention to these earnings surprises, as a big beat can help a stock climb and vice versa.

The ability to identify stocks that are likely to top quarterly earnings expectations can be profitable, but it's no simple task. Here at Zacks, our Earnings ESP filter helps make things easier.

The Zacks Earnings ESP, ExplainedThe Zacks Earnings ESP, or Expected Surprise Prediction, aims to find earnings surprises by focusing on the most recent analyst revisions. The basic premise is that if an analyst reevaluates their earnings estimate ahead of an earnings release, it means they likely have new information that could possibly be more accurate.

The core of the ESP model is comparing the Most Accurate Estimate to the Zacks Consensus Estimate, where the resulting percentage difference between the two equals the Expected Surprise Prediction. The Zacks Rank is also factored into the ESP metric to better help find companies that appear poised to top their next bottom-line consensus estimate, which will hopefully help lift the stock price.

When we join a positive earnings ESP with a Zacks Rank #3 (Hold) or stronger, stocks posted a positive bottom-line surprise 70% of the time. Plus, this system saw investors produce roughly 28% annual returns on average, according to our 10 year backtest.

Stocks with a #3 (Hold) ranking, which is most stocks covered at 60%, are expected to perform in-line with the broader market. But stocks that fall into the #2 (Buy) and #1 (Strong Buy) ranking, or the top 15% and top 5% of stocks, respectively, should outperform the market. Strong Buy stocks should outperform more than any other rank.

Should You Consider Agree Realty?The last thing we will do today, now that we have a grasp on the ESP and how powerful of a tool it can be, is to quickly look at a qualifying stock. Agree Realty (ADC - Free Report) holds a #3 (Hold) at the moment and its Most Accurate Estimate comes in at $1.14 a share 23 days away from its upcoming earnings release on July 30, 2026.

Agree Realty's Earnings ESP sits at +0.27%, which, as explained above, is calculated by taking the percentage difference between the $1.14 Most Accurate Estimate and the Zacks Consensus Estimate of $1.13. ADC is also part of a large group of stocks that boast a positive ESP. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

ADC is one of just a large database of Finance stocks with positive ESPs. Another solid-looking stock is BlackRock (BLK - Free Report) .

Slated to report earnings on July 15, 2026, BlackRock holds a #3 (Hold) ranking on the Zacks Rank, and its Most Accurate Estimate is $12.70 a share eight days from its next quarterly update.

BlackRock's Earnings ESP figure currently stands at +1.21% after taking the percentage difference between its Most Accurate Estimate and its Zacks Consensus Estimate of $12.54.

ADC and BLK's positive ESP figures tell us that both stocks have a good chance at beating analyst expectations in their next earnings report.

Find Stocks to Buy or Sell Before They're ReportedUse the Zacks Earnings ESP Filter to turn up stocks with the highest probability of positively, or negatively, surprising to buy or sell before they're reported for profitable earnings season trading. Check it out here >>

PepsiCo is scheduled to post its latest quarterly results ahead of the opening bell Thursday. The food and beverage giant's stock could undergo a sizable swing to finish the week.

Novavax (NVAX - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this vaccine maker have returned +8.5%, compared to the Zacks S&P 500 composite's +2.1% change. During this period, the Zacks Medical - Biomedical and Genetics industry, which Novavax falls in, has gained 8%. The key question now is: What could be the stock's future direction?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.

Novavax is expected to post a loss of $0.36 per share for the current quarter, representing a year-over-year change of -158.1%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

The consensus earnings estimate of -$0.19 for the current fiscal year indicates a year-over-year change of -107.4%. This estimate has remained unchanged over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $0.26 indicates a change of -40.5% from what Novavax is expected to report a year ago. Over the past month, the estimate has remained unchanged.

With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. 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 #1 (Strong Buy) for Novavax.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

For Novavax, the consensus sales estimate for the current quarter of $50.04 million indicates a year-over-year change of -79.1%. For the current and next fiscal years, $371.85 million and $297.74 million estimates indicate -66.9% and -19.9% changes, respectively.

Last Reported Results and Surprise HistoryNovavax reported revenues of $139.51 million in the last reported quarter, representing a year-over-year change of -79.1%. EPS of -$0.06 for the same period compares with $2.93 a year ago.

Compared to the Zacks Consensus Estimate of $69.51 million, the reported revenues represent a surprise of +100.7%. The EPS surprise was +76%.

The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

Novavax is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Novavax. However, its Zacks Rank #1 does suggest that it may outperform the broader market in the near term.