Terawulf Inc (NASDAQ:WULF) is up 7.5% to trade at $22.74 this afternoon, set to snap a seven-day losing streak, thanks to its newly penned deal with Anthropic. The AI infrastructure concern has agreed to build a $19 billion dollar data center just outside Louisville, KY. The lease will span 20 years.
Despite last week's drawdown, WULF has outperformed over the past 12 months, up 330%. The ascending 80-day moving average captured Thursday's selloff, marking the last session of what became Terawulf stock's longest losing streak since April 2024.
This bounce may have been on the way already, considering the stock's 14-day Relative Strength Index (RSI) of 28, well into "oversold" territory.
Put traders have been circling, too, leaving ample room for bulls to move in, should this bearish attention begin to unwind. At the International Securities Exchange (ISE), Chicago Board Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX), Terawulf's 10-day put/call volume ratio of 1.02 ranks in the highest annual percentile.
Today the skew tilts toward call traders. At last look, over 170,000 calls have changed hands today, volume that's 1.9 times the average intraday amount and nearly triple the number of puts exchanged. The weekly 7/10 10-strike call is the most popular, while July 25 call is seeing notable attention as well.
New York, New York--(Newsfile Corp. - July 6, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Futu Holdings Limited (NASDAQ: FUTU) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Futu securities between May 24, 2023 and May 27, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/FUTU.
Futu Case Details
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that:
Futu was not in compliance with the requirements of the China Securities Regulatory Commission ("CSRC"), including because Futu continued to conduct securities business, public fund sales business, and futures business in mainland China without obtaining the requisite licenses or approval; as a result, Futu was reasonably likely to face regulatory penalties, including the disgorgement of ill-gotten gains and other penalties; and as a result of the foregoing, Futu's financial results were overstated; and as a result of the foregoing, defendants' positive statements about Futu's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.What's Next for Futu Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/FUTU, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Futu you have until August 25, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Futu Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Futu Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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Prior results do not guarantee similar outcomes.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/303315
Source: Bronstein, Gewirtz & Grossman, LLC
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Investors looking for stocks in the Financial - Miscellaneous Services sector might want to consider either Bread Financial Holdings (BFH) or Futu Holdings Limited Sponsored ADR (FUTU). But which of these two stocks presents investors with the better value opportunity right now?
LOS ANGELES, July 06, 2026 (GLOBE NEWSWIRE) -- Glancy Prongay Wolke & Rotter LLP reminds investors of the upcoming August 25, 2026 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Futu Holdings Limited (“Futu” or the “Company”) (NASDAQ: FUTU) securities between May 24, 2023 and May 27, 2026, inclusive (the “Class Period”).
IF YOU SUFFERED A LOSS ON YOUR FUTU INVESTMENTS, CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS UNDER THE FEDERAL SECURITIES LAWS.
What Happened?
On December 30, 2022, the China Securities Regulatory Commission (“CSRC”) issued a statement that Futu has conducted cross-border securities businesses with domestic investors in mainland China without regulatory consent. As a result, Futu was banned from opening new accounts from mainland Chinese investors and soliciting new business from mainland investors.
Then, on May 22, 2026, before the market opened, Reuters published an article reporting that the CSRC, along with seven other government agencies including the central bank, had launched a crackdown aimed at “brokers it accused of illegally moving money to foreign markets” including “overseas firms and their local partners operating without approval.” The article reported “online brokers Tiger, Futu and Longbridge would be penalised for soliciting business in China without an onshore licence, the securities regulator said.”
On the same date, pre-market, Futu issued a press release disclosing that it had received a Notification Letter from the CSRC. The Company reported the letter states “certain Futu entities in mainland China and Hong Kong … without obtaining the requisite licenses or approval, conducted securities business, public fund sales business and futures business in mainland China.” The letter further states the CSRC “proposes to order the Related Companies to rectify or cease such activities, confiscate illegal gains, and impose fines, with the total proposed penalty amounting to approximately RMB1.85 billion (approximately USD271 million).” Further, the regulatory authority “proposes to impose a personal fine of RMB1.25 million (approximately USD 183,575) on Mr. LI Hua, the founder and CEO of the Company.”
On this news, Futu’s stock price fell $34.10, or 27.5%, to close at $89.76 per share on May 22, 2026, on unusually heavy trading volume.
Then, on May 28, 2026, before the market opened, Futu issued a press release reporting financial results for the first quarter 2026, including net income of HK$831.0 million (US$106.0 million) after giving effect to the proposed penalties comprised of: “(i) confiscation of illegal gains of approximately RMB470 million [approximately $69.21 million USD], and (ii) imposition of fines of approximately RMB1.38 billion, [approximately $20 billion USD] in an aggregate amount of approximately RMB1.85 billion.” The press release reported this adjustment under the Company’s financial statements as “Others, net” in its statements of comprehensive income for the applicable period.
On this news, Futu’s stock price fell $5.31, or 4.8%, to close at $104.91 on May 28, 2026, on unusually heavy trading volume.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Futu was not in compliance with the requirements of the CSRC, including because the Company continued to conduct securities business, public fund sales business and futures business in mainland China without obtaining the requisite licenses or approval; (2) as a result, Futu was reasonably likely to face regulatory penalties, including the disgorgement of ill-gotten gains and other penalties; (3) as a result of the foregoing, Futu’s financial results were overstated; and (4) as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased or otherwise acquired Futu securities during the Class Period, you may move the Court no later than August 25, 2026 to request appointment as lead plaintiff in this putative class action lawsuit.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Charles Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: [email protected]
Telephone: 310-201-9150,
Toll-Free: 888-773-9224
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.
If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contact Us:
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100
Los Angeles, CA 90067
Charles Linehan
Email: [email protected]
Telephone: 310-201-9150
Toll-Free: 888-773-9224
Visit our website at: www.glancylaw.com.
New York, New York and New Orleans, Louisiana--(Newsfile Corp. - July 6, 2026) - Kahn Swick & Foti, LLC ("KSF") and KSF partner, former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors with substantial losses that they have until August 25, 2026 to file lead plaintiff applications in a securities class action lawsuit against Futu Holdings Limited ("Futu" or the "Company") (NASDAQ: FUTU), if they purchased or otherwise acquired the Company's securities between May 24, 2023 and May 27, 2026, inclusive (the "Class Period"). This action is pending in the United States District Court for the Southern District of New York.
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https://www.youtube.com/watch?v=Tmjc32xVGrk
What You May Do
If you purchased securities of Futu as above and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, contact KSF Managing Partner Lewis Kahn toll-free at 1-877-515-1850 or via email ([email protected]), or visit https://www.ksfcounsel.com/cases/nasdaqgm-futu/ to learn more. If you wish to serve as a lead plaintiff in this class action, you must petition the Court by August 25, 2026.
>>>CLICK HERE for more information
About the Lawsuit
Futu and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
The alleged false and misleading statements and omissions include, but are not limited to, that: (i) the Company was not in compliance with the requirements of the China Securities Regulatory Commission, including because it continued to conduct securities business, public fund sales business and futures business in mainland China without obtaining the requisite licenses or approval; (ii) as a result, the Company was reasonably likely to face regulatory penalties, including the disgorgement of ill-gotten gains and other penalties; (iii) as a result of the foregoing, the Company's financial results were overstated; and (iv) as a result of the foregoing, defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
The case is Tang v. Futu Holdings Limited, et al, 26-cv-05453.
>>>To Learn More, Click HERE
About Kahn Swick & Foti, LLC
KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation's premier boutique securities litigation law firms. This past year, KSF was ranked by SCAS among the top 10 firms nationally based upon total settlement value. KSF serves a variety of clients, including public and private institutional investors, and retail investors - in seeking recoveries for investment losses emanating from corporate fraud or malfeasance by publicly traded companies. KSF has offices in New York, Delaware, California, Louisiana, Chicago, and a representative office in Luxembourg.
TOP 10 Plaintiff Law Firms - According to ISS Securities Class Action Services
To learn more about KSF, you may visit www.ksfcounsel.com.
>>>For More Information about the case, Click HERE
, /PRNewswire/ -- The DJS Law Group reminds investors of a class action lawsuit against Futu Holdings Limited ("Futu" or "the Company") (NASDAQ: FUTU) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Shareholders who purchased shares of FUTU during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointments. Appointment as lead plaintiff is not required to partake in any recovery.
CLASS PERIOD: May 24, 2023 to May 27, 2026
DEADLINE: August 25, 2026
CASE DETAILS: According to the Complaint, the Company made false and misleading statements to the market. Futu operated in China without licensing and approval from the China Securities Regulatory Commission ("CSRC"), putting it at risk of regulatory action in the country. Based on these facts, Futus public statements were false and materially misleading throughout the class period.
If you are a shareholder who suffered a loss, contact us to participate.
WHY DJS LAW GROUP? DJS Law Group's primary focus is to enhance investor return through balanced counseling and aggressive advocacy. We specialize in securities class actions, corporate governance litigation, and domestic/international M&A appraisals. Our clients are some of the largest and most sophisticated hedge funds and alternative asset managers in the world. The litigation claims of our clients are extraordinarily valuable assets that demand respect, focus, and results.
Join the case to recover your losses.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
, /PRNewswire/ -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Futu Holdings Limited ("Futu" or "the Company") (NASDAQ: FUTU) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company's securities between May 24, 2023 and May 27, 2026, inclusive (the "Class Period"), are encouraged to contact the firm before August 25, 2026.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Futu failed to maintain compliance with the China Securities Regulatory Commission ("CSRC"). The Company was likely to face regulatory action in China due to its failure to comply with CSRC regulations. Based on these facts, the Company's public statements were false and materially misleading throughout the class period. When the market learned the truth about Futu, investors suffered damages.
Join the case to recover your losses
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.,
www.schallfirm.com
Office: 310-301-3335
[email protected]
Key Takeaways Asian technology stocks declined Monday following profit-taking in semiconductor companies after recent rally South Korea’s KOSPI index fell 0.5%, led by SK Hynix down over 4% and Samsung Electronics declining SK Hynix plans to debut $29 billion worth of American depositary receipts on Nasdaq Goldman Sachs remains optimistic on South Korean equities, projecting more than 20% gains for KOSPI over 12 months Declining crude oil prices and reduced geopolitical risks boosted markets in Hong Kong, Indonesia, and India Asian equity markets with significant technology exposure experienced a pullback Monday as traders locked in gains from semiconductor stocks following last week’s strong performance. The decline was particularly pronounced in South Korea and Japan, both heavily weighted toward chip manufacturers.
South Korea’s KOSPI benchmark reversed early gains to finish 0.5% lower. Japan’s Nikkei 225 similarly retreated. Mainland China’s CSI 300 declined 0.6%, while Taiwan’s benchmark remained relatively flat.
KOSPI Composite Index (^KS11) Semiconductor Sector Drives Losses SK Hynix tumbled more than 4% during Seoul trading, while Samsung Electronics declined approximately 1.5%. Battery manufacturer LG Energy Solution lost nearly 4%. In Taipei, MediaTek retreated 1.4%.
Foreign investors sold a net 828.8 billion won of Korean equities throughout the session. The won depreciated 0.3% versus the U.S. dollar.
Despite Monday’s setback, the KOSPI has surged roughly 86% year-to-date, positioning South Korea as Asia’s top-performing equity market in 2026’s opening half. Artificial intelligence memory chip manufacturers have powered the majority of these advances.
A notable exception was Hon Hai Precision Industry, commonly called Foxconn. Shares climbed 0.6% following the announcement of record June and second-quarter revenues, fueled by robust AI server demand. Taiwan Semiconductor Manufacturing also posted modest gains.
SK Hynix is moving forward with plans to introduce 17.79 million new shares via American depositary receipts on the Nasdaq, representing approximately $29 billion in value. South Korean President Lee Jae Myung has urged government officials to accelerate major semiconductor and AI initiatives unveiled last week.
Bank of America characterized the recent artificial intelligence stock correction as a positioning adjustment rather than a fundamental shift. The bank emphasized that AI infrastructure spending continues unabated despite increasing investor selectivity.
Goldman Sachs Maintains Positive Korean Stock Outlook Goldman Sachs continues to project over 20% appreciation potential for the KOSPI during the coming 12 months, setting a price target of 12,000. The investment bank anticipates the rally will expand beyond AI chip manufacturers into energy, materials, and industrial sectors.
Goldman noted that international capital flows are already shifting toward alternative AI-linked industries and industrials. The firm also highlighted that retail investors maintain moderate exposure levels, with Korean households predominantly allocated to real estate and international equities rather than domestic shares.
The bank projects earnings expansion of 320% in 2026, with an additional 35% growth anticipated in 2027.
Mixed Performance Across Asian Markets Beyond the chip sector, regional markets showed greater resilience. Hong Kong’s Hang Seng advanced 0.9%. Indonesian stocks gained 0.8% and India’s Nifty 50 climbed 0.7%.
Declining petroleum prices provided additional support. OPEC+ approved another output increase for August, maintaining elevated supply forecasts and alleviating inflation worries.
Market participants now await Federal Reserve meeting minutes scheduled for Wednesday release, alongside inflation reports from China, Taiwan, Thailand, and the Philippines. Taiwan’s June trade statistics will be scrutinized for evidence that AI demand continues supporting export activity.
TLDR Gold futures climbed 1% to reach $4,166 per ounce following disappointing U.S. employment figures that reduced interest rate hike projections The precious metal recorded its first positive week since May, jumping more than 2% The U.S. dollar rebounded from nearly two-week lows on Monday, applying downward pressure on gold Spot gold declined 0.6% to $4,151.66 on Monday as the greenback regained strength Minutes from the Federal Reserve’s June policy meeting are scheduled for release this week, potentially influencing market direction Gold prices experienced a turbulent beginning to the week. Following their strongest weekly performance since May, the precious metal reversed direction on Monday as the U.S. dollar staged a comeback.
Spot gold decreased 0.6% to $4,151.66 per ounce during early Monday sessions. Gold futures slipped 0.7% to $4,167.29 per ounce.
Gold Aug 26 (GC=F) The previous week painted a contrasting picture. Gold rallied over 2%, marking its strongest weekly performance since mid-May, propelled by disappointing U.S. employment data.
The nonfarm payrolls report released Thursday fell short of market forecasts. This development prompted investors to reduce expectations that the Federal Reserve would implement rate increases before year-end.
The Connection Between Interest Rates and Gold Gold generates no interest income or dividend payments. As interest rates climb, Treasury securities and bonds become increasingly appealing relative to gold, diminishing investor appetite for the precious metal.
This relationship has pressured gold throughout much of this year, keeping it significantly beneath the record peaks established in January.
Declining oil prices also provided support for gold during the previous week. A reduction in crude prices, stemming from restored transportation through the Strait of Hormuz and increased OPEC+ production, calmed inflation concerns.
Reduced inflation expectations translate to diminished justification for Federal Reserve rate hikes. This scenario typically benefits gold prices.
Dollar Strength Limits Gold’s Upside On Monday, the dollar index advanced 0.1%, rebounding from nearly two-week lows. This dollar strength constrained gold’s performance.
The greenback continues trading near 13-month highs reached in June. Persistent U.S. inflation has maintained market uncertainty regarding future interest rate policy.
Saxo Bank analysts observed that short-term U.S. Treasury yields continue suggesting potential for a rate increase later this year. They indicated that additional softening in these expectations would be necessary to sustain gold price appreciation.
Other precious metals experienced similar declines on Monday. Spot silver decreased 1.1% to $61.74 per ounce. Spot platinum fell 0.4% to $1,635.31 per ounce.
Investors are also monitoring potential inflationary pressures from the artificial intelligence sector and escalating global temperatures, both factors that could drive prices upward.
Federal Reserve officials indicated during their June gathering that persistent inflation might necessitate at least one rate increase this year.
The official record from that June policy meeting will be published this week. Market participants are scrutinizing these minutes for insights into the Fed’s upcoming decisions and their implications for gold.
For most of 2026, gold, silver and Bitcoin have been a painful place to put money.
The reason is not hard to find: a fast-shifting outlook for Federal Reserve policy.
The year opened with hopes for rate cuts. Then the war in Iran sent energy prices surging, revived inflation, and flipped the market’s bet from lower rates to higher ones.
For gold, silver and Bitcoin, assets that pay no yield and rise or fall on the path of interest rates, that shift was brutal.
Now, almost in unison, all three are rebounding again, for the very same reason they lost it, only in reverse.
An Oil-Driven DisinflationThe Cleveland Fed’s inflation nowcast now shows negative month-over-month readings for both June and July, with headline consumer prices running at minus 0.06% and minus 0.22%, respectively.
WTI crude has slumped to around $68 a barrel, back to where it traded at the end of February before the war began.
That collapse has a clear source.
Since the United States and Iran agreed in mid-June to halt fighting and reopen the Strait of Hormuz, the chokepoint that had been largely closed since February, Gulf supply has flooded back.
Saudi Aramco just cut the official price of its flagship Arab Light grade to Asia for August by $11 a barrel, swinging it from a $9.50 premium to a $1.50 discount over the regional benchmark, as reported by Bloomberg on Monday.
It was the biggest reduction in at least 26 years and far deeper than the $8 cut analysts had expected.
The Hike Narrative May Lose Its FuelOn the surface, the hawkish case is still standing.
The U.S. economy is expanding at around 2%, with recent core inflation prints in the 3%-4% annualized range, which, on its own, argues for tighter policy.
“The question for hikes seems to be one of when, not if,” said Enrique Díaz-Alvarez, chief economist at Ebury.
Underneath, the data has moved the other way.
The U.S. economy added just 57,000 nonfarm payrolls in June, well short of the roughly 110,000 economists expected, with prior months revised lower.
Traders moved quickly. Odds of a September rate hike, tracked via CME FedWatch, slid from around 66% to near 53%, and the policy-sensitive 2-year Treasury yield eased toward 4.13%.
At the European Central Bank’s Sintra forum, Fed Chair Kevin Warsh said inflation expectations “have come down in recent weeks,” reinforcing the softer tone.
The New York Fed’s May survey put one-year inflation expectations at 3.5%, versus 3.1% three years out, a gap that Ed Yardeni reads as a sign that households see today’s price pressure as temporary rather than structural.
Futures markets had been pricing a rising chance of hikes into year-end, with a nearly one-in-five probability of a target range as high as 4.00% to 4.25% by December.
That pricing is now eroding.
Why Gold, Silver And Bitcoin Are The Unwind Trade22V Research’s strategist Jordi Visser laid out the mechanics.
“If the Fed-hike positioning unwinds, it’s good for gold, silver, and Bitcoin,” Visser said.
The logic runs through positioning. When the market prices in high rates, the opportunity cost of holding a non-yielding asset rises, and Treasurys look more appealing.
When those rate-hike odds unwind, the calculation reverses just as fast. A dovish repricing hands back exactly what a hawkish one took away.
Gold and Bitcoin are now moving almost in lockstep, their 60-day correlation at 0.92, a sign the two are trading as a single macro expression of the same rate view.
What’s Next? The relief rally in Bitcoin, gold and silver rests on one assumption: that the disinflation is real and durable. It may not be.
The drop is almost entirely energy. Core inflation, which strips out food and fuel, remains firm, with the Fed’s preferred core PCE gauge last at 3.4%, and average hourly earnings still running around 3.5% year-over-year.
That keeps Warsh’s inflation-first Fed in a policy box. The decisive data point is the June CPI report due July 14.
For now, the takeaway is simple: the trade that punished gold, silver and Bitcoin all year has begun to reverse, and its staying power hinges on upcoming data.
Photo: Shutterstock
Market News and Data brought to you by Benzinga APIs
Key Takeaways TF Securities analyst Ming-Chi Kuo projects a Q4 2026 foldable iPhone launch, with constrained Q3 shipments of just 500K–1M devices H2 2026 foldable iPhone shipments projected at 7–8 million total units Expected pricing of $2,300–$2,500 won’t deter buyers, according to Kuo’s sellout forecast AAPL climbed 0.1% to $309 on Monday; Jefferies warns stock could remain “range-bound” short-term Analyst consensus leans “Moderate Buy” with a $314.85 average target price Apple’s long-awaited foldable iPhone is generating massive anticipation across the tech world, but supply constraints may leave eager buyers waiting months for delivery.
According to Kuo, Apple’s foldable “iPhone Ultra” could follow the iPhone X launch strategy
> Announced alongside the iPhone 18 Pro lineup
> Pre-orders may slip to late October
> Sales could begin in early November due to limited supply
> Apple reportedly expects only 7–8M… pic.twitter.com/3QP25fYDgp
— apple files (@applefiles_) July 5, 2026
Ming-Chi Kuo from TF International Securities indicated over the weekend that while Apple may reveal its foldable device during its fall product event, actual preorders and retail availability might slip into Q4 2026 as production ramps up gradually.
Shares of Apple were changing hands at $309 during Monday trading, posting a modest 0.1% gain following Thursday’s impressive 4.8% surge. The tech giant’s stock continues hovering close to its 52-week peak of $317.40.
Apple Inc., AAPL
According to Kuo’s projections, Apple will ship approximately 7 to 8 million foldable iPhones during the latter half of 2026. However, only a fraction of those units—between 500,000 and 1 million—will arrive during the third quarter.
This creates an extraordinarily narrow supply channel for what analysts anticipate will be overwhelming consumer interest.
“The foldable iPhone could sell out immediately after preorders open, with delivery lead times quickly stretching 4–6 weeks or longer and remaining there through December,” Kuo noted in his analysis.
While the anticipated $2,300 to $2,500 price range represents a significant premium, Kuo believes demand will remain strong regardless. He anticipates healthy sales momentum even at these elevated price points.
Kuo referenced Apple’s strategic approach during the iPhone X debut in 2017, when the company deliberately managed a phased rollout to generate excitement before expanding manufacturing capacity. The foldable device strategy appears to mirror that calculated methodology.
Market Dynamics and Investor Focus For market participants, the critical evaluation period arrives later in the cycle. Kuo emphasizes that late 2026 through early 2027 will provide the clearest picture of “true demand” for the foldable model, after initial launch enthusiasm subsides and availability normalizes.
Jefferies cautioned Monday that AAPL shares might remain “potentially range-bound” in the near term, citing uncertainty around broader product demand patterns ahead of the new launch window.
Apple’s most recent quarterly results delivered earnings per share of $2.01, surpassing the $1.95 Street estimate, with revenues reaching $111.18 billion—reflecting 16.6% year-over-year growth. The company simultaneously increased its quarterly dividend from $0.26 to $0.27 per share.
Wall Street and Institutional Positioning Among institutional investors, Realta Investment Advisors expanded its Apple holdings by 3.0% during the first quarter, positioning AAPL as its top holding at 7.1% of the portfolio, valued at approximately $20.46 million.
Analyst coverage remains largely constructive. Maxim Group established a bullish $350 price objective, while Robert W. Baird set its target at $310. Meanwhile, DA Davidson and Rosenblatt maintained more conservative neutral ratings with targets of $270 and $276 respectively.
The Street’s aggregate view registers as “Moderate Buy” with a mean price target landing at $314.85.
Regarding insider transactions, CFO Kevan Parekh divested 1,534 shares during April at $275 per share, while insider Ben Borders sold 1,274 shares in May at $290.
Apple currently commands a market capitalization of $4.53 trillion, trading at a price-to-earnings multiple of 37.32.
Solana price slipped to $79.48 on Monday, falling 1.70% over 24 hours as market pressure returned. The move closely followed Bitcoin’s 1.65% decline, while the total crypto market cap dropped 1.47% to $2.14 trillion. Technical indications also demonstrate that the bulls have room to push back in July.
Solana price met fresh resistance near $80 after rising more than 15% in the previous week. This rejection indicated that sellers continue to protect this level in more market-wide weakness.
Solana is still well below its all-time high of 294.33, observed on January 19, 2025. The token is trading approximately 73% lower than that high.
Solana ETF Inflows Support July Recovery Case ETF flows showed a different trend for Solana compared with Bitcoin and Ethereum price. Spot Bitcoin ETFs posted a net outflow of $527 million between June 29 and July 2.
Source: Sosovalue data That became the eighth consecutive week of Bitcoin fund withdrawals. Spot Ethereum ETFs also posted $13.67 million in outflows.
US-listed spot Solana ETFs recorded net inflows of $5.75 million. The upward movement implied investors kept Solana exposure even though the market was scared.
Other altcoin ETFs attracted capital during the week. XRP ETFs brought in $17.19 million, while HYPE ETFs added $4.32 million.
Solana Spot Volume Ranks Second for Another Week Solana ranked second in global spot crypto trading volume for the second straight week, according to SolanaFloor data. The network had a weekly volume of $12.25 billion across DEXes and CEXes. It stayed ahead of Bybit’s $10.57 billion total. Nonetheless, Binance was still the market leader in the overall reporting period.
DEX volume Solana also announced a new record of weekly activity as the number of non-vote transactions passed one billion last week. The graph indicated that the number of transactions increased steeply at the beginning of July. This expansion indicates greater network utilization other than validator voting activity. It also attributes to increasing user, app, and trader demand within the ecosystem of Solana.
Solana User Activity and DApp Revenue Hit New Highs Meanwhile, Solana’s weekly active users climbed from $16.8 million to $29.7 million in two weeks.
The growth contributed $12.9 million wallets, a growth of $76.8. The rebound was sharp, according to the Artemis data, following a slowdown in June. The increase indicates the resurgence of user activity as network applications attract more participants in Web3 markets.
Source: Artemis Solana remained the top L1 and L2 DApp revenue and DEX volume. The report ranked Solana first in 24-hour app revenue and seven-day totals. It also caused DEX volume in both periods. In those rankings presented, Polygon, Ethereum, Base, BSC, and Hyperliquid were ranked across the listed metrics.
🚨BREAKING: @Solana‘s weekly transaction activity hit a new all-time high, with 1B+ non-vote transactions processed last week. pic.twitter.com/x3GBDFHO6Q
— SolanaFloor (@SolanaFloor) July 6, 2026
Solana Price Targets $85 Breakout, Could $100 Follow Next? As of the writing, the SOL price traded at $80.34, based on four-hour chart data. In the meantime, the RSI was around 51, indicating that market strength was in equilibrium at current levels.
The RSI is at 53 indicating that recent momentum has begun to subside. The MACD line, also, was lower than the signal line indicating smaller short term buying pressure.
On the negative side, the level of $80 is also significant since the price is near the level. Any drop less than $80 would put SOL at risk of being under $78, which is the most recent four-hour low on the chart.
Source: Tradingview Additional selling pressure can drive the token to $75, and traders will monitor the $70 support region.
For now, the future Solana outlook remains trapped between $80 support and the $85 resistance region. Bulls require more volume and clean breakout to divert the focus to $90 and $100.
Fresh bullish signals emerged for Solana after its first SuperTrend buy trigger since October.
Solana (SOL) has posted a strong recovery after rising more than 13% over the past week. The latest uptrend has pushed its monthly gains to over 30%. At the time of writing, the crypto asset was trading at around $80 despite a market-wide retracement following Strategy’s BTC sale.
Alongside the price moves, on-chain activity has also picked up.
On-Chain Activity and Treasury Stocks The Solana network added 1.60 million new addresses over the past two weeks, according to crypto analyst Ali Martinez, indicating accelerating network growth.
In a separate analysis, Martinez also flagged that the SuperTrend indicator on SOL’s three-day chart has generated a new buy signal. This is the first such signal since October 10, 2025, when the Average True Range (ATR) trailing stop flipped below the price.
He pointed out that the previous SuperTrend sell signal had been followed by a 74% price correction. According to the analyst, the latest signal confirms a shift in trend from bearish to bullish and could pave the way for SOL to climb toward $100.
Meanwhile, MN Fund founder Michaël van de Poppe also maintained his bullish outlook. He said that the crypto asset is breaking back into its trading range and could see a brief pullback before continuing higher. He added that the $75-$77 range needs to hold as support, and if it does, SOL could not only continue its advance toward $100 but also potentially reach $120 in the coming weeks or months.
Several Solana-focused digital asset treasury (DAT) companies have also posted gains alongside the asset. Shares of Sol Strategies (STKE), for instance, have climbed 13.64% over the past month, while Solana Company (HSDT) gained around 12%. Additionally, Forward Industries (FWDI) also rose by over 7% during the same period.
You may also like: Why Capital Is Flowing Into XRP, SOL, and HYPE Instead of BTC and ETH Here’s How Deeply Underwater Corporate Crypto Bets Have Become After Latest Crash Bitcoin to $16 Trillion? ARK Says BTC Could Eat 70% of the Entire Crypto Market Network Adoption In terms of broader usage trend, Grayscale Research found that the Solana network has processed an average of over 100 million transactions per day so far this year, which is equivalent to more than 1,200 transactions per second. During the same period, it recorded an average of 4.3 million unique daily users and generated roughly $100 million in transaction fees. This activity was attributed to applications across DeFi, social trading, and decentralized infrastructure.
Meanwhile, Solana-based decentralized exchanges have handled over $360 billion in trading volume year-to-date, far exceeding the volume recorded by other blockchain ecosystems.
Stocks are a mixed bag to start the week, with chip names pushing the Nasdaq Composite Index (IXIC) up triple digits, while the S&P 500 Index (SPX) sits modestly higher. The Dow Jones Industrial Average (DJI) hit a record high this morning, topping 53,000 for the first time ever, before pivoting into the red midday. On the economic front, the ISM services purchasing managers' index (PMI) slipped to 54.0 in June, just below estimates, while the employment index returned to expansion territory, rising 3.3 points to 51.2.
Continue reading for more on today's market, including:
2 chip stocks driving today's rally. Telecommunications stock pops on upgrade. Plus, bulls eye PEW; a lofty ALAB bull note; and Honeywell spinoff struggles.
GrabAGun Digital Holdings Inc (NYSE:PEW) is drawing options traders today, after the online gun store posted strong digital sales growth. The stock has already seen 10 times its average daily options volume today, with the most activity at the August 2.50 call, and new positions opening at the July 2.50 call. At last check, PEW was up 23% at $2.89.
Astera Labs Inc (NASDAQ:ALAB) is up 10.7% to trade at $450.03, after Bank of America lifted its price target from $240 to a street-high $450, citing confidence in AI infrastructure spending. Moving back up toward its June 30 record high of $499.48, the equity is up 170% year to date, with strong underlying support at the 20-day moving average.
Shares of Honeywell spinoff Solstice Advanced Materials Inc (NASDAQ:SOLS) were last seen down 12.2% at $70.41, after news that the company is acquiring chemical name Element Solutions (ESI) for $14.5 billion. Trading at its lowest levels since March, the stock is still up 44% in 2026.
Predicting any company's next three years is an impossible task, but doing so for Space Exploration Technologies (SPCX 3.70%) is perhaps especially so.
SpaceX's rocket launches, Starlink satellite internet service, and artificial intelligence (AI) data center business are distinct businesses that could define the company in the coming years. And all will take an immense amount of resources to continue growing.
Still, it's worth considering how each might look three years from now. Here's where SpaceX could be.
Image source: Getty Images.
Increased emphasis on SpaceX's data center business SpaceX is quickly morphing into an artificial intelligence company, most recently through its $60 billion acquisition of Anysphere, the parent company of AI software and coding specialist Cursor, to better compete with Anthropic's Claude Code. And it's already inking huge deals as it builds out a growing neocloud business.
Neocloud companies sell their data center capacity to other tech companies, and SpaceX has already made some large deals. For example, Alphabet's Google signed a three-year deal with SpaceX to supply some of its data center capacity for its Gemini AI model, generating about $30 billion for SpaceX by 2029. And Anthropic is already paying SpaceX about $15 billion annually over the next three years to rent out all of its Colossus 1 data center capacity.
What this means for SpaceX is that over the next three years or so, it could become a very important player in AI data centers. Gartner estimates neocloud players could capture 20% of the AI cloud market by 2030. With its current moves, SpaceX is already in a very strong position to take a leading role in space.
Starlink will continue expanding Starlink is arguably SpaceX's most important business right now, accounting for about 61% of the company's total sales. It's also SpaceX's only profitable business.
Starlink has an impressive 12 million subscribers already, brought in $11.4 billion in sales in 2025, and had $4.4 billion in operating income last year. And SpaceX aims to expand Starlink in the coming years. It's already in the midst of getting ready for a 1,200 satellite launch in mid-2027 using its Starship rocket.
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What's more, a handful of analysts believe SpaceX might bid to acquire a mobile carrier in the next few years to expand its internet business. Most recently, a TD Cowen analyst suggested T-Mobile would be a likely acquisition target.
While that's just speculation right now, even conservative estimates for Starlink's global total addressable market (TAM) are large. Morningstar estimates Starlink already has a $129 billion TAM. And some analysts estimate Starlink's U.S.-based subscribers will reach 15 million by 2030 -- up from just 3 million currently.
The Starship rockets reach mass efficiency Last but not least, SpaceX's rocket business is expected to expand significantly in the coming years. Analysts at Goldman Sachs estimate that SpaceX's core rocket launches could bring in $8.3 billion in revenue by 2030 -- up from $4.1 billion in 2025.
More importantly, SpaceX's Starship rockets are expected to reach an operational efficiency over the next few years that could be unmatched by SpaceX's competitors. If it lowers its marginal cost of launching payloads into orbit by 90%, which it's expected to do with future Starship launches compared to its Falcon rockets, it could achieve a competitive moat that other rocket companies would have a very hard time overcoming.
There's still a lot of uncertainty with SpaceX, and even if the company executes on its goals, there's no guarantee of success in the coming years. Investors are likely better off waiting to see how SpaceX delivers on some of its ambitions over the next year or so before considering buying the stock.
If SpaceX shares close above that level— 30% above the company’s $135 IPO price—on five of the 10 trading days leading up to earnings, an overlooked provision in the company’s IPO lock-up agreement will kick in, unlocking 456 million additional shares just two days after the first scheduled insider share release.
It’s a little-known clause that could quietly make SpaceX’s first major lock-up expiration significantly larger than many investors expect.
Most investors are already watching Aug. 5, when approximately 912 million shares, representing about 20% of eligible non-affiliate holdings, become eligible for sale on the second trading day after SpaceX reports second-quarter results.
But that’s only the first wave.
The IPO prospectus includes a performance-based provision allowing another 456 million shares—or an additional 10% of eligible holdings—to be released on Aug. 7 if the stock closes at least 30% above its IPO price on five of the 10 trading days preceding the first earnings release.
In other words, strong stock performance—not weak performance—could accelerate the amount of stock eligible to enter the market.
Why It MattersLock-up expirations don’t automatically result in insider selling. Employees, executives and early investors can choose to continue holding their shares, particularly if they remain confident in the company’s long-term prospects.
But traders closely monitor lock-up events because they increase the supply of shares that can be sold, sometimes creating additional volatility around earnings or other major catalysts.
The conditional Aug. 7 release makes SpaceX’s lock-up schedule particularly unusual. Rather than tying insider liquidity to the passage of time alone, the company linked part of the release to the stock’s own performance—a mechanism that rewards strength by allowing more shares to become eligible for trading sooner.
Beyond August, SpaceX’s lock-up schedule remains staggered through the rest of 2026 and into 2027, including a 1.3 billion-share release following third-quarter earnings. Elon Musk‘s 6.4 billion shares remain subject to a separate one-year lock-up that is not eligible for early release.
What Investors Should WatchSpaceX’s first earnings report is already shaping up to be one of the company’s biggest post-IPO events. But the results may not be the only catalyst.
If the stock can hold above roughly $175.50 often enough before earnings, investors could see more than 1.3 billion shares become eligible for sale within just two trading days—912 million on Aug. 5 and another 456 million on Aug. 7. That doesn’t guarantee a wave of insider selling, but it does make one little-known IPO clause worth watching just as closely as the earnings report itself.
Image via Shutterstock
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Shares of Space Exploration Technologies Corp (NASDAQ:SPCX), doing business as SpaceX, were last seen down 0.5% at $161.13. Over its last few weeks as a publicly traded stock, SPCX opened at $150, hit a June 16 peak of $225.64, and tumbled to a June 23 low of $147.11.
The stock is becoming increasingly popular amongst options traders, landing on Schaeffer's Quantitative Analyst Rocky White's list of stocks sporting the most active options over the past two weeks. This marks our first coverage of SpaceX since it made its way onto the list, with the stock seeing over 5.4 million calls and more than 3.9 million puts exchanged during this time frame. The most activity during the past 10 days were at the weekly 6/26 150-strike put and weekly 6/26 160-strike call.
Analysts are split on SPCX, with five carrying a "strong buy" rating, five a "hold," and one "sell." Meanwhile, the 12-month consensus price target of $239.25 is a 48.1% premium to current levels.
$2.13 trillion. That is what public markets say SpaceX (NASDAQ:SPCX) is worth as of this morning, a valuation the company reached less than a month after its June IPO and just ahead of confirmed entry into the Nasdaq-100.
Shares of space stocks are selling off across the board midday Monday, with the group’s leaders giving back a chunk of last week’s sharp gains. Rocket Lab (NASDAQ:RKLB | RKLB Price Prediction) stock is leading the pullback, down 7% to $93.28.
AST SpaceMobile (NASDAQ:ASTS) shares are down 5% to $80.61, while SpaceX (NASDAQ:SPCX) stock is off 3% to $157.43. Meanwhile, Intuitive Machines (NASDAQ:LUNR) shares are also 3% lower at $18.93.
There’s no confirmed stock-specific catalyst behind today’s selloff. The move looks like broad profit-taking after a torrid stretch for the sector, and it lands squarely on the highest-beta names.
Profit-Taking After a Blistering Week Rocket Lab stock had climbed 25% in the week ending July 2, and AST SpaceMobile shares had surged 30% over the same stretch. When names run that hot, a reset is normal, especially without a fresh headline to justify holding through the volatility.
Reddit chatter reflects the mood shift. Retail engagement on Rocket Lab cooled sharply after a WallStreetBets post titled “RKLB 2900->29k” celebrated gains on July 2, a classic exit signal. Polymarket’s daily direction market currently prices a 95% probability that Rocket Lab stock closes down today.
These are largely pre-profit, speculative names with no meaningful trailing earnings multiples to anchor valuation. Their prices trade on backlog, sentiment, and news flow, which cuts both ways.
The Long-Term Space Story Is Still Intact The bull case has not changed. The commercial-space backlog recently crossed $500 billion, and SpaceX’s NASDAQ debut on June 29 gave public investors direct access to the sector’s dominant player.
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Government demand is the other pillar. The U.S. FY2027 space budget totals $59.7 billion and funds 31 launches, a step-change from prior years. Rocket Lab’s $2.2 billion backlog and Intuitive Machines’ 2026 revenue guide of $900 million to $1 billion both lean on that spending trajectory.
AST SpaceMobile has reaffirmed $150 million to $200 million in 2026 revenue and is targeting roughly 45 BlueBird satellites in orbit by year-end. Execution on constellation cadence remains the swing factor for the AST SpaceMobile story.
UFO Offers Diversified Sector Exposure For readers who want space exposure without single-name risk, the Procure Space ETF (NASDAQ:UFO) is a pure revenue-weighted vehicle for space stocks. Top holdings include Planet Labs at 6% as well as Rocket Lab at 5%.
The fund’s diversified basket smooths some of the single-stock volatility, but the ETF and its constituents remain high-beta plays. Position sizing in space names should stay modest given the group’s tendency to swing sharply in both directions.
What to Watch The key near-term question is whether today’s losses hold into the close. Polymarket’s week-of-July-6 market clusters at $88 to $92 for Rocket Lab stock, suggesting the crowd expects stabilization rather than a deeper flush.
Traders can watch for updates on Rocket Lab’s Neutron rocket debut, AST SpaceMobile’s BlueBird launch cadence, and NASA CLPS award decisions for Intuitive Machines. A single volatile session doesn’t change the long-term thesis, but it’s a fresh reminder that space stocks remain high-volatility positions.
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SpaceX bulls are proving a devout lot, not unlike the Tesla traders that came before them.
Daily options flows still lean heavily bullish almost a month into trading and one day ahead of the stock's accelerated inclusion into the Nasdaq 100, the index behind the roughly $500-billion Invesco QQQ fund, of which Elon Musk's new giant will garner a roughly 1% weighting.
About half-a-million SpaceX options traded by midday Monday, a little below the average since inception, but still enough to be the fifth-most popular stock for options trading. More than 300,000 calls traded, compared to less than 130,000 puts, with almost five times as many calls bought versus puts, according to ThinkOrSwim data. Tesla, Musk's other trillion-dollar company, is consistently among the most active stocks for options traders.
Nasdaq's inclusion of SpaceX will in theory make the tech-heavy index marginally more volatile overnight given SpaceX's wild swings, but the Nasdaq's rules limit the weight of low float stocks, so the impact will likely be minimal. How SpaceX releases shares around its lockup timeline, how passive index buyers handle its inclusion, and overall demand for options, will determine if SpaceX stays as wild as it did when it came out to market.
SpaceX
SpaceX trades with an implied volatility of 92, almost 3.5 times that of QQQ, which itself is currently the most volatile in comparison to the S&P 500 in almost 20 years. Arguably that would mean over the long term, SpaceX volatility should come down, as long-term-minded investors buy and hold index funds and their constituents.
The counterpoint is that those index-holders may use SpaceX options to hedge its inclusion, which would keep demand elevated for puts. SpaceX's volatility also makes call-selling attractive as an income source, which would increase options volume. Add in the fact that high volatility has been a key characteristic of many of the bull market's biggest winners, keeping calls in strong demand despite expensive premiums, and there's a case to be made SpaceX volatility could stay – even if the stock keeps rallying.
Shares slipped to below $160 on Monday following a bounce Thursday, but a 8% sell-off last Wednesday.
All of the top 10 options contracts by volume Monday were calls. The most popular was the 450-strike call expiring July 17, a 15-cent trade contract that needs a 180% rally by the end of next week to break even. Bigger traders favored the 180-strike call expiring Friday.
Meta remains a Strong Buy as I increase my stake, despite recent legal and regulatory headwinds. META's aggressive CapEx, including a $145B program and AI compute buildout, is offset by monetization strategies like Meta Compute and strategic fintech investments. Valuation remains compelling: META trades at a 19.06 P/E and 0.86 PEG, with robust revenue and net income CAGRs outpacing peers while funding growth from operating cash flow.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of META, GOOG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Bohdan Kucheriavyi is not a financial/investment advisor, broker, or dealer. He's solely sharing personal experience and opinion; therefore, all strategies, tips, suggestions, and recommendations shared are solely for informational purposes. There are risks associated with investing in securities. Investing in stocks, bonds, options, exchange-traded funds, mutual funds, and money market funds involves the risk of loss. Loss of principal is possible. Some high-risk investments may use leverage, which will accentuate gains & losses. Foreign investing involves special risks, including greater volatility and political, economic, and currency risks and differences in accounting methods. A security’s or a firm’s past investment performance is not a guarantee or predictor of future investment performance.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Meta Platforms (NASDAQ:META | META Price Prediction) has spent the year getting punished for the exact strategy that may end up minting money.
Meta runs the largest advertising machine outside of Google, powered by Facebook, Instagram, WhatsApp, Threads, and Messenger, and has quietly become one of the most aggressive infrastructure builders on the planet. Full-year 2025 capex hit $69.7 billion, up from $37.3 billion in 2024, and the 2026 range was pushed to $125 billion to $145 billion. That is Manhattan Project money for GPUs, custom silicon, and data center capacity.
Shares are down 8.7% year to date and 17.4% over the past year, badly lagging the broader market’s advance in 2026. What changed the conversation was a leaked plan showing Meta intends to sell compute externally. That raises the SpaceX comparison bulls have been waiting for.
The SpaceX playbook comes to Menlo Park SpaceX solved its capex overhang by turning excess capacity into rentable compute. Anthropic agreed to pay $1.25 billion per month for roughly 300 megawatts, and Google (NASDAQ:GOOG) signed a $920 million per month deal for about 110,000 GPUs stretching into mid-2029. That is a $26 billion annual run rate arriving before the S-1 was even dry.
Meta has the same ingredients. It owns the buildout, has already signed $107 billion in new contractual commitments this quarter for multiyear cloud deals and infrastructure purchase agreements, and it is deploying more than one gigawatt of custom silicon developed with Broadcom (NASDAQ:AVGO), alongside a fresh $6.5 billion Samsung foundry deal for its third-generation MTIA accelerator. The core ad engine funds the whole thing. Q1 revenue rose 33% to $56.3 billion at a 41% operating margin, with ad impressions up 19% and price per ad up 12%. Volume and price rising together is rare.
The bear case that keeps working The bear argument is that this remains a capex black hole. Meta burned 60.2% of its operating cash flow on capex in 2025, Reality Labs is still losing roughly $4 billion per quarter, and the Q1 headline EPS of $10.44 was flattered by an $8.03 billion tax benefit. A single Zuckerberg comment on infrastructure spending sent Applied Optoelectronics down 17% in one session. The market is nervous about ROI slippage.
A depreciation cliff looms. D&A of $18.6 billion trails capex of $69.7 billion by a wide margin. Future earnings absorb a rising drag. Regulatory overhangs in the EU and pending US youth-litigation trials add tail risk that valuation multiples do not always price.
Where patience makes a case Nobody actually knows if compute-as-a-service materializes into signed contracts this year. Muse Spark is the first model out of Meta Superintelligence Labs, business AI conversations grew from 1 million to 10 million weekly in a single quarter, and yet monetization is still “currently free for most businesses.”
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Investors could reasonably wait one or two more prints to see whether third-party revenue arrives before paying up.
What the valuation and ratings show Meta trades at roughly 21x times trailing earnings and 19x times forward, cheaper than the broader software complex despite 30%-plus revenue growth. The Street consensus target sits at $828.17, or roughly 39.8% upside, on 57 Buy, 6 Hold, and 0 Sell ratings. The ratings distribution is unusually one-sided.
Prediction markets are catching up too. Polymarket assigns 74.5% probability that Meta ends 2026 with a higher valuation than OpenAI, and Deutsche Bank and Morgan Stanley recently flipped their view of Meta’s AI spend from “cash-burning black hole” to “monetization engine.” Meanwhile the stock underperformed the S&P 500 by a wide margin over the past twelve months, which is the setup value investors typically want.
Why $593 is the right entry At $593, Meta Platforms is a Buy.
The path to price appreciation is bifurcated, and either fork works. If the compute-as-a-service pivot lands even one anchor tenant, Meta reprices as a hyperscaler rather than an ad platform, a multiple expansion story on top of an already-growing earnings base. If it does not, the ad business alone generated $200.97 billion in 2025 revenue at a 41.4% operating margin and continues to compound double digits, which supports the current price without any AI revenue at all.
The entry point matters. Shares sit meaningfully below both the 50-day ($605) and 200-day ($646) moving averages, and the multiple has compressed while earnings have expanded. That is the definition of a re-rating candidate, not an expensive one. The thesis breaks if Reality Labs losses widen materially, if Q2 revenue misses the $58 billion to $61 billion guide, or if promised third-party compute deals fail to materialize by year-end. Those are watchable, not fatal.
The clearest reason to own Meta at this price is that you are getting the ad business at a discount and the AI infrastructure optionality for free.
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Tesla (TSLA) shares climbed about 1.5% in early Monday trading after the electric vehicle maker broadened its autonomous ride-hailing footprint with a Robotaxi
An old-economy sector fund is quietly beating the market darlings this year, and it holds zero shares of the electric-vehicle giant everyone loves to argue about. The iShares U.S. Aerospace & Defense ETF (NYSEARCA:ITA) has climbed 13.74% year to date and 32.48% over the trailing year, all while owning none of the Magnificent Seven, including Tesla (NASDAQ:TSLA | TSLA Price Prediction). Over the same year-to-date stretch, Tesla shares have fallen 12.51%.
What ITA Actually Owns ITA is BlackRock’s iShares fund tracking large- and small-cap U.S. companies in the aerospace and defense industry. As of March 31, 2026, the fund managed $13.49 billion in net assets spread across 47 holdings. The portfolio is heavily concentrated at the top: the ten largest positions represent roughly 64% of assets.
The top three names alone drive the fund. GE Aerospace sits at 19.03%, RTX at 16.55%, and Boeing at 8.91%. Behind them: General Dynamics at 4.77%, L3Harris at 4.66%, Lockheed Martin at 4.58%, Northrop Grumman at 4.58%, TransDigm at 4.53%, and Howmet at 4.50%.
Why the Fund Is Running Defense primes have benefited from a step-change in federal budget authority. The FY 2027 President’s Budget request for the Department of the Air Force alone reaches $391.1 billion, and procurement lines for major weapons systems are expanding, with the F-35 program alone jumping to a $21.4 billion request for FY 2027. Commercial aerospace has added its own tailwind through Boeing’s production ramp and record engine-services demand at GE Aerospace and RTX.
Growth-oriented names inside the fund have amplified the move. Axon Enterprise sits at 2.83%, Rocket Lab at 2.55%, and Kratos Defense at 1.10%. Goldman Sachs flagged economic security as a prominent 2026 theme, and this fund is a direct expression of it.
The Tesla Question Tesla is not in the fund’s 47 holdings as of the most recent NPORT filing. The reason is methodology, not opinion. ITA tracks a sector-focused index limited to aerospace and defense classifications. Tesla, at a $1.48 trillion market cap, is categorized under consumer discretionary and automotive. Its rockets are at SpaceX, a separate private company. The index simply has no lane for it.
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That exclusion has helped this year. Tesla trades at a price-to-earnings ratio of 421, and the stock is down 12.51% year to date despite a 14.14% Q1 earnings beat on $22.39 billion in revenue. Broad tech-adjacent volatility that has dragged Magnificent Seven names lower has bypassed ITA entirely.
What the Absence Means for Risk Funds that hold Tesla, including most total-market and consumer discretionary ETFs, have carried the drag from its year-to-date decline. ITA has skipped that hit but taken on a different concentration risk: three companies (GE Aerospace, RTX, Boeing) account for roughly 44.5% of the portfolio. A production stumble at Boeing or a Pentagon continuing-resolution fight could reverse the trend quickly.
The fund also skews cyclical. Over five years, ITA has returned 130.85%, and over ten years, 330.57%. Those numbers include long stretches when defense budgets were less generous and aerospace was grounded during the pandemic.
The Takeaway For retirement-focused investors weighing a sector allocation, ITA offers direct exposure to a policy-driven earnings cycle without wagering on high-multiple consumer tech. That is the trade-off: no Tesla upside if the stock rebounds, but no Tesla drawdown either. Past performance doesn’t guarantee future results, and this article is not investment advice. Anyone considering a position should weigh the fund’s concentration in a handful of prime contractors against the defense-spending backdrop that has powered its 6.14% trailing-month and double-digit year-to-date gains.
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Tesla (TSLA +6.04%) has expanded its robotaxi rollout, and a company executive has teased that another major announcement is coming tomorrow. That news helped shares pop today. As of 2:27 p.m. ET, Tesla stock was higher by 6% to start the week.
The company posted on its social media account that it has officially launched its driverless robotaxi service in Miami, Florida. That is giving investors a clue about what a Tesla vice president was talking about last week when he teased that a big announcement is coming tomorrow.
Image source: The Motley Fool.
Austin gigafactory news Tesla said it has started its robotaxi service in Miami on July 3. That makes Florida the third state beyond Texas and California, but the rollout has been measured. In the post announcing the Miami launch, the company's social media account included a map showing a relatively small geofenced area where the service will be available.
More importantly for investors, though, is what it could mean for the announcement that is coming tomorrow. Tesla vice president of vehicle engineering, Lars Moravy, appeared on a podcast last week and stated that on July 7, "there will be some cool news about things happening around Giga Texas as part of the scaling effort."
Investors may be jumping into the stock today, believing that the Texas plant will be scaling its manufacturing capacity to prepare for a massive rollout of Tesla's Cybercab for its future unsupervised robotaxi fleet.
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An artificial intelligence (AI) powered robotaxi fleet, along with future humanoid robots, is mainly what has Tesla's valuation so high. Another step toward building out the driverless taxi fleet has investors getting excited.
Howard Smith has positions in Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
Key Takeaways Coca-Cola posted 3% global unit case volume growth, with every operating segment growing volumes.North America volume rose 4% as Trademark Coca-Cola, Fanta, BODYARMOR and other brands grew.International trends were mixed, with soft Mexico, Argentina, Eurasia, the Middle East and the Asia Pacific. The Coca-Cola Company (KO - Free Report) delivered 3% global unit case volume growth in the first quarter of 2026, with every operating segment posting positive volume growth despite an uneven consumer and macroeconomic backdrop. However, the regional performance revealed a notable contrast. North America emerged as one of the strongest contributors, while some international markets continued to face localized pressures, raising the question of whether the company’s domestic momentum can sufficiently offset global softness.
North America reported 4% volume growth, benefiting partly from an easier year-over-year comparison but also from broad-based demand across the beverage portfolio. Trademark Coca-Cola, Fanta, FRESCA, BODYARMOR, Powerade, Dasani, smartwater and Minute Maid all recorded volume growth. Innovation also supported demand through products such as Coca-Cola Cherry Float, Diet Coke Cherry, POWERADE Power Water and the expansion of mini cans into convenience stores. The company gained both volume and value share while growing revenues and profit in the region, underscoring healthy execution beyond favorable comparisons.
Outside North America, the picture was more mixed. Latin America benefited from strong performances in Brazil and Central America, which offset declines in Mexico and Argentina. EMEA delivered overall volume growth, although volumes in Eurasia and the Middle East weakened in March following the onset of regional conflict. The Asia Pacific also posted volume growth across all operating units despite difficult comparisons, but profitability was pressured by commodity inflation in tea and coffee, and inventory cost timing.
Management remains focused on maintaining balanced global growth through affordability initiatives, consumer-centric innovation and localized execution rather than relying on any single geography. North America has provided an important source of strength, but sustained global momentum will likely depend on improving conditions across international markets while preserving the company’s broad-based volume gains.
KO vs. PEP & MNST: How is North America Business Performing?Like Coca-Cola, North America remains one of the most closely watched markets for PepsiCo Inc. (PEP - Free Report) and Monster Beverage Corporation (MNST - Free Report) , with volume trends offering valuable insight into their competitive positioning.
PepsiCo’s North America business showed encouraging improvement in the first quarter of 2026, but it was not enough to fully offset softer trends across parts of its global portfolio. PepsiCo Foods North America returned to volume growth through affordability investments and innovation, while PepsiCo Beverages North America benefited from acquisitions despite a decline in organic beverage volume. Meanwhile, international markets continued to provide the company’s most consistent growth, extending a long streak of resilient organic revenue gains.
Monster Beverage's North America business delivered a strong start to 2026, with U.S. and Canada net sales rising 15.6% on healthy category demand, innovation and disciplined execution. However, unlike many global peers, Monster Beverage did not face broad international weakness. Instead, every geographic region posted double-digit sales growth, suggesting that North America's momentum complemented rather than offset the company's robust global expansion.
Zacks Rundown for Coca-ColaKO shares have gained 20.3% in the year-to-date period compared with the industry’s growth of 15.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, Coca-Cola is trading at a forward price-to-earnings ratio of 24.92X, higher than the industry’s 19.72X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for KO’s 2026 and 2027 earnings implies year-over-year growth of 8.7% and 6.9%, respectively. Earnings estimates for both 2026 and 2027 have been unchanged in the past 30 days.
Image Source: Zacks Investment Research
Coca-Cola currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Consider this a belated PSA: A recent change to Google’s privacy settings is allowing the company to store more of your data, including media such as “images, files, and audio and video recordings,” to improve its AI models. In other words, if you upload any media to Google’s Search services, it’s being used to train AI unless you opt out.
The change came about via an under-the-radar update to Google’s Search services privacy settings, announced in June via a customer email. With the update, the company essentially opted people into this expanded AI training under the guise of giving users more control over their saved history and personalized recommendations.
Image Credits:Google (screenshot) The update introduced two new settings, Search Services History and Personalized Recommendations, allowing you to configure how your activity is used to personalize your Google experience and how long your web and app activity is saved.
This update applies beyond Google Search itself, and also includes other search services such as Maps, Shopping, Flights, Hotels, Translate, and News.
For instance, when you use Google Lens to search for something visually by snapping a photo, that image may now be saved for AI training.
Similarly, if you use the newer Search Live feature to search via voice input in the Google app, those audio recordings could be saved, as can any other Google voice search. If you use Google Translate to practice speaking, that audio is saved, too.
The changes reflect a broader industry shift toward gathering data by any means necessary to improve AI services. Instead of relying solely on information scraped from the web, Google and others are increasingly collecting data that people upload or create when using their services. Meta is another example of a consumer-facing tech company doing this at scale, training its AI on users’ images and media, as well as on content recorded by its AI glasses.
Google confirms the media-training use directly, stating in that email to customers: “Like your Search Services History, your saved media is also used to develop and improve Google services and technologies, including AI models and safety measures.”
Its help documentation echoes this, noting that the company “uses your history to provide, develop, and improve its services (such as training generative AI models) and to protect Google, its users, and the public with the help of human reviewers.”
Some of this storage is temporary and tied to making the product work, but per Google’s own language, saved media can also be retained specifically to train its AI.
Adjusting your settings The good news is you have some control here. You can change your preferences on the Search Services History and Search Services Personalization pages. On the former, you can uncheck the “Save Media” box separately from the “Search Services History” box, or uncheck both. You can also configure how often you want saved data automatically deleted — after 3 months, 18 months, or 36 months.
From there, you can jump to this page to dig into other privacy settings, including Web & App Activity, Timeline, YouTube History, and more.
Image Credits:Google (screenshot) Beyond saved media, Google also uses your search history, location, and other information from the websites you visit to personalize your experience on Google, including which ads are shown.
Before this update, Google let you configure what historical search data was saved via its “Web & App Activity” settings. That’s now been separated into two settings: the Web & App Activity data and the new Search data setting, which is on by default.
That means if you make a change to the Web & App Activity data retention settings in an effort to opt out of having your data stored by the tech giant, the update will no longer impact your use of Google Search services, as it’s now a separate option.
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Sarah has worked as a reporter for TechCrunch since August 2011. She joined the company after having previously spent over three years at ReadWriteWeb. Prior to her work as a reporter, Sarah worked in I.T. across a number of industries, including banking, retail and software.
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If you’re looking for an e-reader that allows you to buy expensive bestsellers from your local independent bookshops, your research will inevitably point you to Rakuten’s Kobo eReader. But, as it turns out, this reputation is largely based on outdated methods for buying Kobo books, involving signing up for a Kobo account from bookshops’ websites.
While there are a handful of indie bookshops nationwide still supporting Kobo through this website method, most of that kind of support ended years ago. I’ve found it impossible to buy e-books for my recently purchased Kobo from any of my local, beloved bookshops.
I want to support these bookshops, and I don’t want to own a physical copy of every book I read. I also want to use an e-reader rather than an Android or iOS app on a phone or tablet because e-readers offer long battery life, digital ink, and low-glare screens. These allow me to read comfortably for hours, even outdoors, similar to a physical book.
One solution for Kobo owners, originally promised for 2025, was a partnership with Bookshop.org, an Amazon competitor that supports local bookshops with every order. Bookshop.org currently offers e-books through its mobile app for iOS and Android.
That partnership was at first promised for 2025 and then delayed to 2026, and for a brief time earlier this year, looked like it would be delayed indefinitely.
After Bookshop.org changed the wording on its webpage referencing Kobo support, removing “2026” and replacing it with “sometime in the future,” I reached out to get a status update.
Bookshop.org’s founder and CEO, Andy Hunter, told me in an emailed reply that progress with Kobo has now been made. The webpage has been updated, saying once again that support is expected to roll out “later this year.”
“The Kobo integration is something both Kobo and Bookshop.org want to make happen,” Hunter said.
The hold-up has been both on the business side and engineering to ensure it is “done in such a way that respects publisher requirements for digital rights management. It took us some time to hammer out the business terms and allocate the necessary engineering resources,” he explained.
Hunter, whose company also competes with Amazon by selling physical books, says his engineers have been focused on improving the mobile device app, which launched about 15 months ago.
Their attention is now being returned to Kobo support, albeit the timing remains vague. “We have recently settled on business terms with Kobo, and we are confident the collaboration is going to happen, but can’t promise a specific launch date until the engineering work is further along,” Hunter said.
Obviously, whether or not Bookshop.org ever figures out Kobo support, Kobo users don’t have to buy all their books from Japanese-based e-commerce giant Rakuten. Kobo users can read a large selection of digital rights management (DRM)-free books on their readers, and a large selection (though not all) of library books offered through Overdrive. Independent e-book store Books.com also delivers DRM-protected books in a format that Kobo supports, it says.
Another solution, should your goal be to support local bookshops with e-book purchases, is to use a different e-reader. An Android reader like Boox or Meebook that supports the Google Play app store should be able to download Bookshop.org’s app, the bookseller says.
Still, like countless other Kobo owners, I’m rooting for the Bookshop.org integration to materialize. Supporting local independent bookstores was my main motivation for buying this particular e-reader, misled as I was by my online research (and the confident advice of ChatGPT).
Now that I own a Kobo Libra Colour, I really do love its reading screen, fast response, and long battery life. I also continue to hold onto my six-year-old Kindle for the same reasons.
But I also love the local, small-business bookstores with their personalized recommendations, support of local authors, and sheer love of books. Here’s hoping that the top e-commerce site that supports local shops, Bookshop.org, will soon actually support the popular Kobo device, which claims 12 million users in 190 countries.
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Microsoft said on Monday it was eliminating about 4,800 jobs – roughly 2% of its global workforce – in a cost-cutting move that will deliver a sweeping restructuring of its struggling Xbox gaming division.
The cuts include the deepest overhaul in Xbox’s history, with approximately 3,200 gaming jobs to be shed over the coming fiscal year, four game studios being spun off or sold, and a fifth entering a review process that could lead to closure, the company said.
The announcement is the latest in a string of mass layoffs by the tech company as it spends large sums of money to stay in the artificial intelligence race, with companies investing tens of billions of dollars in AI-ready datacenters and computing power.
“Our business is changing because the world around it is changing,” Amy Coleman, Microsoft’s executive vice-president and chief people officer, wrote in a memo to all employees.
“Companies don’t get to choose whether their industry changes; they only get to choose whether they change with it.”
Coleman said the layoffs fell mostly within Microsoft’s commercial business and Xbox.
She said the eliminated roles were “not being replaced by AI”, but acknowledged that automation was reshaping how work is done across the company.
On the commercial side, she said the cuts would build on Microsoft’s $2.5bn push, announced last week, to embed 6,000 engineers inside enterprise clients to accelerate AI adoption by often reluctant customers.
At Xbox, CEO Asha Sharma told employees in a separate memo that 1,600 positions were being cut immediately, with the rest to follow through fiscal year 2027.
Xbox has been through successive rounds of cuts since Microsoft’s $68.7bn acquisition of Activision Blizzard closed in 2024 after a long review process by regulators over competition concerns.
Sharma described Xbox’s business as “not healthy”, with profit margins “3-10 times lower” than rivals.
She succeeded the longtime Xbox chief, Phil Spencer, who retired in February, and has pledged to return the division to growth by 2027.
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“History is full of companies that mistake longevity for inevitability,” she wrote. “We will not be one of them.”
Four studios will leave Xbox as part of the restructuring.
Compulsion Games and Double Fine Productions will become independent, retaining their intellectual property and game catalogs.
Ninja Theory and Undead Labs have entered terms to join new owners with funding to continue their current projects.
In France, Arkane’s management is beginning a required consultation with its works council to review what Sharma called “potential strategic options” – a process that could result in further closures or a sale.
Microsoft is axing 4,800 employees, most of them from its Xbox division, as it and the rest of the tech industry seek to adapt to the AI era.
The cuts come as the software giant has heavily invested in artificial intelligence after years of pouring cash into gaming.
“Our business is changing because the world around it is changing. The way technology is built, deployed, and used is transforming faster than at any point in my time here,” Amy Coleman, Microsoft’s chief people officer, wrote in a Monday memo to employees.
Xbox Chief Executive Asha Sharma said the sagging video game maker must shed workers amid an overhaul. Bloomberg via Getty Images The layoffs included 1,600 Xbox employees who were immediately let go, with another 1,600 set to be axed over the rest of Microsoft’s fiscal year, according to Xbox Chief Executive Asha Sharma.
“Our business today is not healthy,” she wrote employees, going on to list challenges like slow growth.
“We are operating at margins that are 3-10x lower than comparable platform and publishing businesses,” Sharma added. “We must reset Xbox.”
Microsoft – which became a dominant force in the video game arena with the landmark launch of the Xbox in 2001 – is also selling or spinning off four game development studios and weighing strategic options for a fifth, according to Sharma.
The cuts account for 2.1% of Microsoft’s global workforce — and one-fifth of Xbox staffers.
AI has been blamed for layoffs throughout the tech sector, which saw its worst start to the year in terms of employment since 2023. The first three months of 2026 brought 52,050 tech layoffs — a 40% jump from the same period last year, according to executive coaching firm Challenger, Gray & Christmas – with AI increasingly being blamed for the cuts.
The soon-to-be axed Microsoft employees won’t actually be replaced by AI, Coleman said.
Microsoft became a dominant force in the video game business with the landmark launch of the Xbox in 2001. “At the same time, what is true is that AI is changing how work gets done. Some of the tasks we do every day can now be automated, and that means we all need to keep learning, keep building new skills, and keep adapting as the work evolves,” she said.
Microsoft stock was down about 1.5% as of midday Monday.
Microsoft – along with rivals Sony and Nintendo – has jacked up prices for its Xbox consoles amid a global memory chip shortage caused by seemingly bottomless demand for powerful chips from the AI sector.
The video game industry has faced waves of layoffs over the past two years after companies including Microsoft ramped up hiring during the COVID pandemic. That growth slowed once pandemic restrictions ended.
Microsoft bought game makers such as Activision Blizzard to strengthen Game Pass, its Netflix-style subscription service. Sharma acknowledged in the memo that Game Pass “did not grow at the pace we expected.”
Xbox revenue fell 5% in the quarter ended in March compared with a year earlier. The division’s profit margin for the fiscal year ended in June was 3%, down from the previous year.
Satya Nadella’s Microsoft has poured ever-more resources into AI. dpa/picture alliance via Getty Images Microsoft CEO Satya Nadella tapped Sharma, the former chief operating officer of Instacart, to helm Xbox in February despite her lack of experience in the video game industry. Since taking over, she has hustled to reshape the business.
Sharma is reducing the number of games Microsoft publishes while putting more resources behind its biggest franchises, including Minecraft, Candy Crush and Fallout. She also lowered the price of Game Pass after the service lost subscribers following a price increase last year, and stopped adding new “Call of Duty” titles to the subscription service, requiring players to purchase them separately.
Beyond gaming hardware and subscriptions, Xbox operates Microsoft’s digital game store for Windows PCs. As the company scales back its own game development, Sharma is working to make Microsoft a more attractive distribution platform for the growing number of independent game developers.
Not a day goes by that the market doesn't receive a wrinkle in the artificial intelligence (AI) story. It was reported that Meta Platforms (META +3.02%) plans to sell its excess computing capacity, in effect building its own cloud segment. This would pit its new venture, called Meta Compute, against dominant platforms from Amazon, Microsoft, and Alphabet.
The social media stock surged 9% to $612.91 on July 1. Shares then dipped 5% on July 2. Should investors view this strategic pivot as a bearish or bullish signal?
Image source: The Motley Fool.
Did Meta overbuild? Meta's capital expenditures (capex) increased 84% year over year in 2025 to $72.2 billion. The figure is projected to total between $125 billion and $145 billion this year. These are enormous figures that reveal how bullish founder and CEO Mark Zuckerberg is on AI's potential.
But the dollar amounts demonstrate a changing financial structure. Meta has now become a capital-intensive business, and the market appears worried. Shares are down 26% since hitting an all-time high in August last year.
The concerns are valid, as they rest on the company's ability to earn a meaningful return on this unprecedented level of spending. Zuckerberg previously hinted at the company's options if it ended up overbuilding capacity.
The bearish view is obvious here. It looks like Meta is admitting that it invested too much money in AI-related data centers and infrastructure. It's already figured out that it can't monetize this capex through its internal operations. Maybe this is an early indication that the AI boom is on shaky ground.
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Demand is ahead of supply Entering the cloud computing market seems like a rational move. However, Meta will compete squarely with Amazon Web Services, Azure, and Google Cloud, which have multi-year headstarts, comprehensive product and service offerings, and proven track records.
An upbeat view is that the management team realizes that selling AI compute capacity to outside customers generates a much better return, even with competition from established players. This is particularly the case right now, since demand for these resources far outpaces supply. Alphabet paying Space Exploration Technologies $920 million per month for AI compute capacity is a clear sign of how constrained the industry is.
The good news is that Meta's core operations are thriving. Advertising revenue jumped 33% year over year in the first quarter (ended March 31), driven by strong gains in ad impressions and pricing. This is a foundation that shareholders can depend on.
I believe investors should view this move in a positive light. Meta Compute is a way to produce revenue sooner rather than later, which will help to ease lingering fears about the huge AI capex cycle.
Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, and Microsoft. The Motley Fool has a disclosure policy.
LOS ANGELES, July 06, 2026 (GLOBE NEWSWIRE) -- Glancy Prongay Wolke & Rotter LLP reminds investors of the upcoming August 11, 2026 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Microsoft Corporation (“Microsoft” or the “Company”) (NASDAQ: MSFT) common stock between May 1, 2025 and January 28, 2026, inclusive (the “Class Period”).
IF YOU SUFFERED A LOSS ON YOUR MICROSOFT INVESTMENTS, CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS UNDER THE FEDERAL SECURITIES LAWS.
What Happened?
On January 28, 2026, Microsoft announced disappointing results for its second quarter of fiscal 2026, revealing that growth of its cloud computing platform, Azure, had slowed suddenly and fallen below analyst expectations due primarily to computational capacity constraints, as the Company had diverted central processing unit and graphics processing unit capacity to applications for its generative AI chatbot, Copilot, and AI-related research and development. The Company also revealed that its capital expenditures had increased to $37.5 billion during the quarter, causing the Company’s capital expenditures for the first six months of fiscal 2026 to expand to $72.4 billion compared to $88.2 billion for the entirety of fiscal 2025, largely due to AI-related research and development and Copilot development and capacity buildout costs. Additionally, Microsoft disclosed that the amount of paying users of Copilot was well below analyst estimates.
On this news, Microsoft’s stock price fell $48.13, or 9.99%, to close at $433.50 per share on January 29, 2026, thereby injuring investors.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Microsoft’s Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) that Microsoft’s flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) that Microsoft needed to increase by billions of dollars its capital expenditures and divert GPU and CPU capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related R&D; (4) that, as a result of the foregoing, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and the Company’s Copilot offerings had lost market share to rival products, a trend that was increasing; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Microsoft common stock during the Class Period, you may move the Court no later than August 11, 2026 to request appointment as lead plaintiff in this putative class action lawsuit.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Charles Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: [email protected]
Telephone: 310-201-9150,
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Visit our website at www.glancylaw.com.
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If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
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Contact Us:
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100
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Charles Linehan
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Microsoft announced on Monday it is laying off 4,800 employees, or 2.1% of its workforce—with more to come—as part of a massive cost-cutting restructuring effort. The layoffs include major cuts from its Xbox division.
In a memo to staffers, Xbox CEO Asha Sharma said Microsoft was “resetting Xbox” and would be cutting a total of 3,200 employees, or 20% of that division, throughout fiscal 2027—including spinning off four gaming studios. Compulsion Games and Double Fine Productions will become independent studios, while Ninja Theory and Undead Labs will be spun off.
This amounts to eliminating 1,600 roles now and another 1,600 in the coming year, as the company focuses on artificial intelligence (AI) and away from its lagging gaming sector.
This is just the latest round of layoffs for the tech giant, coming a year after the company eliminated 9,000 jobs.
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“Our business today is not healthy,” Sharma said. “We are operating at margins that are 3-10x lower than comparable platform and publishing businesses.”
So, what happened?
According to Sharma, “[Microsoft’s] core business weakened, and [they] added more teams, more investment, and more time, hoping for a better outcome. And now the industry is facing the most severe hardware crisis in its history.”
It's been a challenging year for some of the world's leading tech stocks. While some stocks have thrived, namely those that are involved in selling memory and storage products, many others have struggled.
A couple of tech giants within the "Magnificent Seven" that have been doing particularly poorly are Microsoft (MSFT 1.18%) and Meta Platforms (META +3.02%). They're both down double digits as investors have been pivoting to other names in tech instead. But with both of these businesses still generating terrific results recently, they may still have a lot to offer investors. Which one is the better buy for the second half?
Image source: Getty Images.
As of the end of June, Microsoft's stock was down an incredible 23%, making it the worst-performing stock in the Magnificent Seven. That's bad for current shareholders, but for people looking to buy the stock, it could make for an intriguing opportunity.
That's because Microsoft remains a top tech company. Its Windows operating system and Office software are staples in businesses all over the world. Artificial intelligence (AI) and chatbots aren't likely to make them obsolete. In fact, AI should enhance its products and make them more useful. But amid the panic due to AI fears, the market has dumped Microsoft along with many other software stocks.
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The company's AI business grew at a rate of 123% in its most recent quarter, and the overall business generated 18% growth. Those are terrific numbers, with many of Microsoft's products and services delivering double-digit growth. For a top tech stock with a varied business model, Microsoft has a lot of upside given its attractive valuation; it trades at 23 times its trailing earnings, which is less than the S&P 500 average of 25.
The case for Meta Platforms Social media giant Meta Platforms has been investing heavily in AI, but that hasn't been enough to stop it from going on a sizable downturn this year. At the halfway point of the year, it was down 15%.
Meta has many top social media applications in its portfolio, including Facebook and Instagram. And the company is looking to AI to drive even more opportunities for its business, with Meta AI now being available in its apps. The company has rolled out paid AI plans for its applications, which may drive more revenue growth for its already strong business. With 33% revenue growth during the first three months of the year, Meta is doing well as its apps continue to be attractive options for marketers and advertisers to reach their target markets.
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The company's strong profits enable it to spend heavily on the metaverse and AI, potentially unlocking more growth in the long run. At a price-to-earnings multiple of 21, the stock is an even cheaper option than Microsoft.
Which stock looks better right now? Although it's a bit more expensive, Microsoft's stock may generate better returns for investors in the long run. Its software is crucial for businesses, and that isn't likely to change anytime soon. AI may prove to be more of an opportunity than a threat to its operations. Meta, meanwhile, faces a bit more uncertainty given the increased spotlight on social media and the harms it poses to children. Its tendency to spend aggressively as it chases the latest trends (as is the case now with AI) is also why I'd tread a bit more cautiously with the stock.
Microsoft looks to be the safer, more reliable investment to consider when looking at the long run. It may just be a matter of when it starts to rally, but this is definitely a stock with a lot of potential upside given its reduced valuation.
Microsoft Corp. (NASDAQ:MSFT) is starting its new fiscal year with a substantial personnel cut.
The tech behemoth announced Monday it will cut about 4,800 jobs. That’s around 2.1% of its worldwide staff. According to Benzinga’s findings, most of the cutbacks are in the company’s sales, consultancy, and Xbox gaming units.
Microsoft Layoffs Happen Again: Why? So why is the most profitable tech giant firing thousands of workers?
The short answer is the jaw-dropping price tag of artificial intelligence. Microsoft is investing record amounts into AI infrastructure. The corporation is creating enormous data centers, buying high-end CPUs, and expanding cloud capacity.
These large expenditures, therefore, are feeding major anxieties on Wall Street. Investors are worried that heavy expenditure on AI will squeeze profit margins badly.
“Decisions like these are never easy, and you have my commitment that we are always investigating how to reduce the need for job eliminations,” Amy Coleman, EVP and Chief People Officer at Microsoft, explained.
There is also a growing fear that AI might disrupt existing enterprise software models. Microsoft is trying to cut back on non-core corporate employment to offset these capital costs and protect its bottom line.
However, this is not the first time Microsoft has laid off people this year. The company’s first significant workforce reduction of 2026 began on April 23.
During that period, Microsoft introduced its inaugural voluntary retirement buyout program, offering early-retirement incentives to about 8,750 eligible U.S. employees.
Wall Street Reacts: No More Rally for MSFT? Investors initially liked the significant cost cuts. Microsoft shares were up more than 3% when the first rumors of the layoffs arose, breaking a severe multi-week downward trend.
The stock finished last week at $390.49, bouncing back from a new 52-week low of $349.20.
But the IT giant still faces an uphill struggle on the charts. The restructure follows a difficult month for stockholders. Microsoft shares dropped nearly 19% over the last six months.
At the time of writing, the Microsoft layoffs have forced the MSFT stock down to $383.48.
In June, the share price declined by 10.39%. As a result, some market watchers called it the worst single-month performance by the corporation since the dot-com era.
Xbox Business Goes RedBesides that, Microsoft’s gaming industry has faced severe difficulties in addition to AI pressures.
About 1,600 of the initial job cutbacks are with the Xbox division. It comes after years of aggressive purchases, including the $69 billion acquisition of Activision Blizzard.
But, despite all these significant efforts, Xbox has yet to find its foothold. Internal memos show that hardware sales fell 33% last quarter.
In an email to the affected employees, Xbox CEO Asha Sharma told staff that the business couldn’t continue on its present course, noting that the business is not currently healthy.
However, she noted that Xbox will prioritize growth and could be open to hiring again sometime in the future.
On the weekly chart, the Microsoft layoffs seem to have affected the stock structure. As shown below, MSFT is forming a potential head-and-shoulders pattern, with the right shoulder near $450-$455 after the rally failed to set a new high.
This rejection suggests sellers remain in control. Furthermore, the stock is now trading around the 50% Fibonacci retracement at $384.11, a key support level.
If this level fails, Microsoft could slide toward the 38.2% Fibonacci retracement at $343.94, where stronger demand may emerge.
However, a weekly close back above $450 would invalidate the bearish setup and improve the outlook.
Meanwhile, the MACD remains below both the zero line and the signal line, indicating that bearish momentum is still stronger than bullish momentum, even as selling pressure shows signs of easing.
Microsoft Layoffs: The Metrics Investors Need to WatchMicrosoft does budget resets on July 1, the start of its new fiscal year, regularly. A prior voluntary buyout scheme helped soften this year’s forced departures, leading to over a third of the 8,750 U.S. employees eligible for early retirement.
However, the fact that 4,800 jobs are still being eliminated speaks to a deeper issue.
Now the big question for investors is how these cuts would protect Microsoft’s bottom line. The company is currently treading a fine line, sustaining outstanding operating margins (46.3% in Q3) while absorbing a staggering $190 billion annual capital expenditure driven by AI technology.
Management has the financial flexibility to support this infrastructure boom by cutting non-core areas such as legacy sales and underperforming locations within Xbox.
Going forward, investors will need to watch key metrics in the upcoming Q4 earnings release to see if these aggressive internal efficiencies can help gross margins hold steady against rising data center costs.
It might also be important to see if Azure can continue to grow at 39% to 40% to justify the heavy CapEx outlays.
Ultimately, these layoffs show that Microsoft is ready to sacrifice legacy personnel to win the next generation of enterprise AI. Time will tell if the company will win.
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
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Microsoft is eliminating 4,800 positions, representing approximately 2.1% of its global workforce, as the software giant navigates a broader shift toward artificial intelligence (AI) and seeks to stabilize underperforming hardware and gaming segments, CNBC reported Monday (July 6).
The restructuring hits the company’s Xbox division particularly hard. According to an internal memo from Xbox CEO Asha Sharma, the unit will shed 3,200 roles through fiscal year 2027. Half of those reductions—1,600 positions—were finalized Monday, accounting for roughly one-fifth of the division’s total staff. Sharma characterized the multi-year downsizing as a difficult but necessary step, stating that it is “not possible to make all the necessary changes in a single day.”
As part of the consolidation, Microsoft is spinning off several game development studios. Compulsion Games and Double Fine Productions, both acquired in the 2010s, will return to independent status. Ninja Theory and Undead Labs have reportedly entered terms to join new ownership, while Microsoft is exploring “strategic options” for France-based Arkane Studios.
The workforce reductions come amid a period of market volatility for Microsoft. The company has been the worst-performing megacap tech stock in 2026, declining 19% as of Friday’s (July 3) close. While cloud services and LinkedIn have shown growth, the company is grappling with shrinking revenue in Windows licenses, Surface devices and Xbox. Furthermore, investors remain concerned that generative AI could displace traditional enterprise software before Microsoft’s own AI services become major contributors to the bottom line.
Amy Coleman, Microsoft’s chief people officer, noted in the memo that while AI is not directly replacing laid-off workers, it is fundamentally “changing how work gets done” through the automation of daily tasks. To mitigate the impact of the cuts, Microsoft in April utilized a voluntary retirement program for U.S. employees at the senior director level and below, an offer accepted by more than one-third of those eligible, CNBC reported.
These layoffs reflect a failure of the subscription-focused model Microsoft had previously employed for its gaming division under former CEO Phil Spencer. In 2023, Xbox announced a $1 billion investment in Game Pass, its subscription service where users could enjoy unlimited games, including new releases, for a flat monthly fee. Although the program saw initial success, price hikes over the years led to millions of users unsubscribing.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) is the stock everyone points at, a $4.75 trillion monument to the AI buildout that just posted 85.23% revenue growth last quarter and guided to $91 billion for the next one. But the more interesting setup right now is elsewhere. Advanced Micro Devices (NASDAQ:AMD) closed Thursday around $517.82 and ripped roughly 7% higher intraday today, and it is doing something NVIDIA structurally cannot do at its current size, which is compound off a smaller base while the largest AI buyers on earth publicly commit to its next-generation silicon.
Why the crowded NVIDIA trade is getting harder from here NVIDIA is a great company that increasingly has a valuation problem. Its Q2 revenue guide of $91 billion explicitly excludes China Data Center compute, a bucket that contributed $4.6 billion a year earlier and is now effectively zero. Total supply-related commitments have ballooned to $119 billion, up from $50.3 billion two quarters back, and that kind of forward inventory positioning creates real downside if hyperscaler capex takes even a modest breath.
Data Center is now 92.3% of total revenue. That is one door for a $4.75 trillion company, and it opens onto a handful of hyperscale customers who now have public partnerships with AMD as well.
Polymarket traders already sense the ceiling. The most probable July close on NVIDIA sits at $192, and the probability of finishing this week above $200 is only 4.5%. Consensus is priced for consolidation, so any incremental dollar chasing NVIDIA is buying a stock the crowd already expects to stall.
AMD’s data center is inflecting while NVIDIA laps a huge base Look at what the AMD segment has done in four quarters. Data Center revenue grew 14% in Q2 2025, then 22%, then 39%, and hit 57% year over year in Q1 2026 at $5.78 billion. Free cash flow jumped 252.96% year over year to $2.57 billion, non-GAAP gross margin expanded to 55%, and management guided Q2 to roughly $11.2 billion, up about 46% year over year with gross margin stepping to 56%. Net income grew 95.06% on a business roughly one-fifth the size of the incumbent, with a debt-to-equity ratio of 0.07.
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Trailing P/E sits near 181x, forward P/E near 76x, and shares are up 148% year to date. So yes, you are paying up. You are paying up for a business whose Data Center growth rate is still accelerating while the incumbent laps ever-tougher comparisons, and for Client, Gaming, and Embedded segments that add a stability cushion NVIDIA no longer has.
The customer list that quietly closes the gap Then there is the question of who is actually writing checks. Meta committed to 6 GW of AMD Instinct GPU deployment, with the first gigawatt powered by MI450. OpenAI selected AMD as a core preferred partner with another 6 GW planned. Oracle is deploying 50,000 GPUs on AMD’s Helios rack design.
AWS, Google Cloud, Microsoft Azure, and Tencent are all expanding 5th Gen EPYC-powered cloud instances. On the Q1 call, Lisa Su said customer engagement around MI450 and Helios is strengthening with “leading customer forecasts exceeding our initial expectations”. When the two largest AI capex spenders on the planet independently sign multi-gigawatt commitments for silicon that hasn’t fully shipped, a credible duopoly is forming in real time.
Retirement portfolios tend to compound by owning businesses the crowd is still catching up to, and on the numbers above AMD’s data center trajectory and customer commitments are what to keep an eye on next to NVIDIA’s tougher comps.
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) shares continue to slide for one primary reason which the Zacks Rank has warned investors about for the past two years: persistent downward EPS estimate revisions by Wall Street analysts.In just the past few months the consensus EPS estimate for FY 2027 (ends May) has declined by 20% from $2.00 to $1.80. And even next fiscal year is seeing the same revision trend, dropping over 10% from $2.70 to $2.40.
The profit collapse persists as revenues also fall flat. The current fiscal year Zacks consensus estimate for Nike's top line now sits at $46.32 billion among 13 analysts. This would represent slight negative growth from the prior year's sales of $46.4B.
The Picture Worth Billions of Dollars
Revenues are certainly vital to a business. But the Zacks Rank focuses on bottom line profits -- and more specifically, their change in direction and magnitude -- to evaluate which companies have the strongest and weakest relative growth traction.
Nike 12-month trailing Net Income slid from $5.7B at the end of the May quarter in 2024 to $2.25B at the end of the Feb quarter this year.
And how could an investor see this trend developing in real time and know if it was persistent over several quarters?
By studying the Zacks Price, Consensus, and EPS time series which shows annual earnings estimate revision trends as a single moving line...
If chart does not appear, just click here.
This data view comes from tracking analyst EPS revisions, which is exactly what the Zacks Rank does every day. It's a vital visual tool that is the simplest way to quickly grasp the Zacks Rank in action for any stock, and its the very first graphic you see on every company quote page.
Under the Hood: How the Zacks Rank Works
I call the Zacks Rank a "bell curve cage match" because we take all the Wall Street analyst EPS revisions on any given day and throw them into a calculation engine that sorts and "ranks" them by various weights, including magnitude and agreement (what percentage of analysts providing estimates agreed on the change in direction, up or down).
So we end up with over 4,000 stocks ranked by their relative earnings momentum, up and down. We call the top 5% and bottom 5% Zacks #1 Rank Strong Buys and Zacks #5 Rank Strong Sells, respectively.
The next 15% in from the "tails of the bell" are Zacks #2 Rank Buys and Zacks #4 Rank Sells. And the middle 60% of stocks are those with no meaningful revision trends to compete for either the penthouse or the cellar.
The way that founder and MIT quant Len Zacks makes sure the Zacks Rank is relevant before and after company earnings reports is by only running the data on the last 60 days of estimate revisions. Think of it as a rolling 60-day window, where older revisions drop out as less important information before the next company report card.
In the 1970s, Zacks studied the correlation between stock price returns and company earnings and published his findings in 1979 in the Financial Analysts Journal with the title "EPS Forecasts -- Accuracy Is Not Enough."
His thesis was that earnings estimate revisions were the predominant driver of near-term stock returns -- thus more important than what the company said about their growth.
The "Magnificent Seven" stocks are among the most valuable and popular stocks in the world: Apple (AAPL +1.55%), Alphabet (GOOG +2.06%)(GOOGL +1.71%), Amazon, Meta Platforms, Microsoft, Nvidia (NVDA +0.86%), and Tesla. Over the years, they've generated some fantastic returns for investors, perhaps even life-changing gains.
But this year, their gains have been lackluster, and only one of them has even outperformed the S&P 500 (it's up around 9%). Here's a look at the top three stocks in this group as of the halfway point of 2026, and whether they are good buys right now.
Image source: Getty Images.
Apple: up 6% Although a modest single-digit gain may seem modest for this group of stocks, that's enough for a stock like Apple to be among the top three. It was up around 6% as of the end of June, and it's been a better buy than the rest. Investors may have been underwhelmed with its artificial intelligence (AI) strategy, but with its results still looking solid, it remains a popular tech stock to own.
The company has been battling higher costs due to soaring memory and storage prices, but with a customer base that doesn't often balk at paying a premium for products, it may be in better shape than most if it ends up having to raise the prices of its iPhones this year. It has already raised prices on other products, including MacBooks and iPads.
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Although the stock is doing reasonably well this year, its valuation is high, which could limit its gains from here on out. It trades at 37 times its trailing earnings, which can be problematic if its growth rate slows due to higher prices. While it remains an attractive option for the long haul, it could be a challenging road ahead for Apple in the near term.
Nvidia: up 7% The days of chipmaking giant Nvidia delivering massive returns for its shareholders may be over. Up just 7% as of the end of June, Nvidia's gains have been relatively light, even though they've been solid compared to other stocks in the Magnificent Seven.
Nvidia is already the most valuable company in the world with a market cap of $4.7 trillion, so it's not an easy task for it to rise higher. Although its earnings multiple of 30 is lower than Apple's, investors may remain concerned about the market cap and the future expectations that are effectively priced into Nvidia's current valuation.
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However, with the company generating impressive growth of 85% in its most recent quarter (which ended on April 26), its results continue to look stellar. Nvidia's market cap may seem high, but given its high level of growth and strong earnings, it may have more room to rise higher not only in the second half of the year but in the long run.
Alphabet: up 13% The top-performing stock in the Magnificent Seven as of the end of June was Alphabet. At around 13%, its gains weren't huge, but they were enough to make it the best stock in the group and the only one to beat the S&P 500, which was up less than 10%.
The company has proven that it can thrive due to artificial intelligence (AI), as opposed to it proving to be an existential threat to its business. The company's Gemini chatbot is not only proving to be a significant threat to OpenAI's ChatGPT, but may also be in the best position to succeed given the company's deep pockets. Alphabet's business continues to do well, with its advertising and search segments remaining strong despite investors' initial concerns about AI. The company's top line rose by 22% during the first three months of 2026, totaling nearly $110 billion.
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Trading at 27 times its trailing earnings, Alphabet's stock is the cheapest one on this list. It offers good value for investors and could still have more upside this year, given its solid growth and AI opportunities.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) owns the AI compute market, but every major customer is spending billions to buy less of what it sells.
NVIDIA carries a $4.75 trillion market cap and sits between a 52-week low of $158.18 and a high of $236.26. Q1 FY27 revenue came in at $81.61 billion, up 85.2% year over year, with data center revenue of $75.25 billion.
About 50% of that data center number comes from hyperscalers, the same companies bankrolling Amazon Trainium, Google TPU, Microsoft Maia and Meta MTIA.
The bull case Growth accelerates at NVIDIA’s scale. Management guided Q2 FY27 revenue to $91.0 billion with non-GAAP gross margin holding at 75%. Networking revenue grew 199% year over year to $14.8 billion, evidence the moat extends past GPUs into InfiniBand, Spectrum-X and NVLink.
Blackwell Ultra is ramping, Rubin was announced, and Jensen Huang called the AI factory buildout “the largest infrastructure expansion in human history.” The dividend raised to $0.25 quarterly and an additional $80 billion buyback was authorized.
All of this says NVDA stock is set to keep delivering, as long as the broader market remains bullish.
The bear case The customer list is the threat. Amazon has disclosed Trainium is now a multi-billion-dollar business, and every hyperscaler funding NVIDIA’s data center segment also funds an alternative. Custom silicon “not only gives you a differentiation factor where you can be cheaper than competitors, but it also allows you to have some leverage over NVIDIA in negotiations.”
China data center compute revenue is effectively zero, and Colette Kress (Nvidia’s CFO) said losing that market, which NVIDIA sizes at “close to about $50 billion in the future,” would be material. Supply commitments of $119 billion compound demand risk if hyperscaler orders slow, and insiders have logged 16 recent transactions, net selling.
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What’s actually happening Neither thesis has resolved. Blackwell ramps while Trainium and TPU volumes rise in parallel. NVIDIA’s NVLink Fusion strategy lets hyperscalers bolt custom accelerators onto NVIDIA’s fabric so the interconnect stays sticky even when compute does not.
Watch hyperscaler capex mix, whether networking growth stays vertical, and any China SKU announcement over the next two quarters. Any one breaking hard could tip the call.
The market view NVIDIA trades at $196 against an analyst consensus target of ~$301.62 as of this writing, implying 53% upside. Coverage skews heavily positive with 10 Strong Buy, 48 Buy, 2 Hold, 1 Sell ratings. Forward P/E sits at 22x, trailing P/E at 29x.
Performance is mixed. NVDA is up 4.59% year to date and 24.06% over the trailing year, but down 12.46% over the past month. The S&P 500 delivered a smaller trailing-year gain, so NVDA outperformed with more turbulence.
The verdict At $196, NVIDIA remains a buy.
The numbers do not argue for selling. A company compounding data center revenue at 92% with 75% gross margins and $48.55 billion of quarterly free cash flow is a durable franchise. The numbers also do not argue for aggressively adding. Roughly half of that data center revenue comes from six companies actively engineering their way off NVIDIA’s price list, and management’s NVLink Fusion pivot is an implicit acknowledgment that fighting custom silicon head-on loses.
Buy conviction requires durable evidence that networking and software capture margin even when compute goes custom, plus a China resolution. Sell conviction requires a hyperscaler capex reset or a Trainium/TPU disclosure that reframes NVIDIA as a supplier rather than the platform. Prediction markets show 80.5% conviction NVDA touches $192 in July and only 7% for a week close above $210, a range consistent with the fundamentals.
Owning NVIDIA at this price is defensible. Buying it aggressively requires believing the customer base will keep writing checks it is openly trying to stop writing.
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Nvidia Corporation remains a Strong Buy, as recent stock weakness is disconnected from operational performance and driven by external sentiment factors. NVDA's Q1 revenue surged 85% YoY to $81.6B, with Data Center revenue up 92% and gross margins holding near 75% despite rapid scaling. Management guides for $91B Q2 revenue, excluding China Data Center compute, and expects stable margins through the next chip transition.
Four years ago, Amazon (AMZN +1.22%) started using its own Trainium AI chips in its cloud infrastructure platform, Amazon Web Services (AWS). Those first-party chips became even more powerful with the launches of the Trainium2 in 2024 and Trainium3 in 2025. That expansion indicated that Amazon wanted to reduce its dependence on Nvidia (NVDA +0.86%), which still provides the majority of its data center GPUs.
Several of Nvidia's other top customers -- including Microsoft (MSFT 1.13%), Alphabet's (GOOG +2.19%) (GOOGL +1.71%) Google, and Meta -- also produced their own AI chips for the same reason. Google and Microsoft even plan to sell their own chips to third-party customers that want to break free from Nvidia's sticky ecosystem.
Image source: Getty Images.
That's why it wasn't surprising when recent reports suggested that Amazon would hop aboard the bandwagon and start selling its Trainium chips to external customers. Could this seismic shift shake up Nvidia's booming data center business?
Nvidia faces long-term threats Amazon's Trainium3 chips can't compete against Nvidia's top-tier Blackwell GPUs on their own. But by densely stacking 144 Trainium3 chips into its UltraServers, Amazon can actually match the rack-scale performance of Nvidia's Blackwell systems at a much lower cost. Microsoft and Google are utilizing that same "system-level stacking" strategy to challenge Nvidia's chips.
Many privacy-oriented markets, such as Europe, want to expand their cloud infrastructure without storing their data on servers operated by American hyperscalers. To solve that, they'll likely purchase more third-party chips from Amazon, Microsoft, and Google to build their own cloud platforms. Other large companies that don't want to rely on those tech giants or become too dependent on Nvidia's chips will likely follow the same playbook.
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But Nvidia still has a wide moat Amazon's sales of third-party AI chips would certainly represent a long-term challenge for Nvidia, but it probably won't meaningfully impact its near-term sales.
Nvidia still locks in its customers with its proprietary software ecosystem, CUDA, and most AI models, libraries, and frameworks are natively optimized to run on its industry-standard GPUs. Many companies that have already invested in Nvidia's ecosystem won't eagerly sever those ties to buy new chips from Amazon, Microsoft, or Google.
For now, Nvidia's investors shouldn't worry too much because the demand for its data center GPUs is still easily outstripping its supply. However, they should still keep a close eye on how its biggest customers are gradually evolving into formidable competitors.
Leo Sun has positions in Amazon and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy.
SK Hynix, the world’s second-largest memory-chip maker, is coming to the NASDAQ on Friday with the largest stock sale anyone has priced in years, and the chip complex is already pricing it in. CNBC’s Kristina Partsinevelos reported Monday that “SK Hynix plans to raise roughly $28 billion through an American depositary receipts, or ADR, on the Nasdaq, and this target was down from earlier numbers.”
She added that “it’s still the second biggest share sale in history behind only SpaceX’s record IPO, which was just last month here at the Nasdaq as well.” The semiconductor index rose more than 4% on the news, and the chip trade retail has been crowded into for a year got another shot of adrenaline.
What the raise funds Partsinevelos noted the proceeds “are going to go towards expanding chip facilities, specifically in South Korea, all to meet soaring AI demand. They’re going to be buying ASML EUV machines as well.” When a memory duopolist raises $28 billion and immediately hands a chunk of it to a single Dutch equipment vendor, the equipment vendor’s backlog stops being an abstraction.
ASML (NASDAQ:ASML | ASML Price Prediction) already reported $15.28 billion in Q4 2025 net bookings, a record, and CEO Christophe Fouquet said “demand for chips is outpacing supply” in Q1 2026 results. ASML is up 65.97% year to date and popped another 5.39% Monday.
The scaled-back size is the tell. Shares wobbled in Seoul, so bankers trimmed the deal. A memory maker still walked away with $28 billion of fresh cash to build fabs. That flow of cash from a memory duopolist to a Dutch lithography monopolist, mid-pullback in Seoul, is the AI capex cycle working as designed.
The equipment chain is the cleanest read Applied Materials (NASDAQ:AMAT) CEO Gary Dickerson raised his outlook on the May 14 call, saying “we now expect our semiconductor equipment business to grow more than 30 percent in calendar 2026.” That was a bump from the 20%-plus he’d guided one quarter earlier.
Applied has EPIC Center partnerships with TSMC, SK hynix, Micron, and Samsung, meaning every memory expansion announced this quarter feeds directly into next year’s tool orders. AMAT is up 212% over the past year.
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Memory, and whether SK Hynix’s raise is a threat to Micron Micron Technology (NASDAQ:MU) just posted $41.46 billion in Q3 FY26 revenue, up 345.72% year over year, with GAAP gross margin at 84.6%. CEO Sanjay Mehrotra guided Q4 to $50 billion in revenue and roughly 86% gross margin (see the Q3 filing).
Retail is interpreting the SK Hynix news as validation rather than threat. The top r/stockmarket post Monday was titled “This isn’t a memory cycle anymore, and SK Hynix hitting US markets is the next leg,” and MU’s Reddit sentiment score sits at 63 (bullish). Micron rose 3.27% Monday to $1,007.49, up 241.97% YTD.
Where NVIDIA and Broadcom sit in all this NVIDIA (NASDAQ:NVDA) is the customer buying HBM from Hynix and Micron, and it’s the reason the whole cycle exists. Q1 FY27 revenue was $81.61 billion, up 85.2%, with data center revenue at $75.25 billion.
Jensen Huang described the moment as “the buildout of AI factories, the largest infrastructure expansion in human history.” Broadcom (NASDAQ:AVGO) guided Q3 AI semi revenue to $16.0 billion, up over 200% year over year, per CEO Hock Tan on the June 3 call. Broadcom ripped 3.71% Monday.
Is it frothy? NVIDIA is down 6% over the past month and Broadcom is down 5%, so calling the group euphoric misses that the leaders have already coughed up gains. A top r/wallstreetbets post flagged that “leverage in South Korean chip stocks is out of control,” which is worth holding in mind. Goldman Sachs’ 2026 outlook notes concerns are rising over signs of froth, including some headline-grabbing deals and announcements of huge capex plans.
A $28 billion memory raise funding ASML tools that Applied Materials integrates, to feed HBM to NVIDIA and Broadcom, is exactly the kind of headline that makes both bulls and skeptics feel vindicated. Watch Friday’s open. What SK Hynix prices at, and whether the aftermarket holds, is the tell for how deep the capex conviction actually runs.
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Key Takeaways AT&T expanded 400G connectivity, added Lumen fiber assets and reaffirmed its 2026 outlook.T added 294,000 postpaid phone users as its wireless and fiber convergence strategy gained traction.T faces elevated debt and intense competition, while AI network monetization remains a long-term prospect. AT&T, Inc. (T - Free Report) stock plunged 27.5% over the past year compared with the Wireless National industry’s decline of 21.7%. The stock has underperformed compared to the Zacks Computer & Technology sector and the S&P 500’s growth during this period.
Image Source: Zacks Investment Research
The company has underperformed its peers like Verizon Communications Inc. (VZ - Free Report) and T-Mobile US, Inc. (TMUS - Free Report) over the past year. Shares of Verizon have dipped 0.5%, while TMUS stock has plummeted 25.3% during the same period.
Key Growth DriversAT&T expanded 400G wavelength connectivity to 40+ U.S. metros, enabling AI-ready, high-capacity enterprise networking. T’s 400G capability now covers 440,000 properties serving more than 2.3 million business tenants. The expansion has significantly boosted AT&T’s capability in the AI and enterprise networking space.
The company is benefiting from solid traction in the wireless vertical. It has added 294,000 postpaid phone subscribers during the quarter. Postpaid phone churn was 0.89%. The company is focused on increasing the number of households that subscribe to both AT&T wireless and broadband services, including AT&T Fiber and AT&T Internet Air. Its convergence strategy is paying off well, as evidenced by recent quarterly results. Around 42% of AT&T’s advanced home Internet users also subscribe to its wireless services. T recently introduced AT&T OneConnect. The product combines fiber and wireless into a single subscription. Growing adoption of such plans will deepen customer relationships and increase convergence.
AT&T continued to execute on its long-term connectivity strategy by strengthening its fiber footprint. During the first quarter, the company completed the Lumen fiber acquisition ahead of schedule. The buyout has added 1.1 million fiber customers and more than 4 million fiber locations. Along with these developments, AT&T continues to execute on its transformation initiatives, including AI-driven automation and digitalization, to support its target of $4 billion in annual cost savings by 2028.
The company has reaffirmed its guidance for 2026. It is targeting 3-4% adjusted EBITDA growth in 2026. Free cash flow is targeted at more than $18 billion in 2026, in excess of $19 billion in 2027 and in excess of $21 billion in 2028, alongside an adjusted earnings outlook of $2.25 to $2.35 per share for 2026. Given the highly competitive nature of the industry, this is a positive outlook.
Major Challenges for TThe U.S. wireless market remains highly saturated. The company faces strong competition from other players such as Verizon and T-Mobile. Verizon is also aggressively expanding its fiber footprint. It is also offering wireless and fiber bundled solutions to increase customer retention. Such initiatives could hinder AT&T’s fiber expansion and convergence strategy to some extent.
Amid intense competition, AT&T expects to invest $23-$24 billion annually through 2028 to expand fiber and maintain its wireless network. Sustaining such high capex for a few years may impact free cash flow growth and put pressure on margin at least in the near term. The company is also expanding its AI networking infrastructure, but AI monetization remains a long-term growth prospect, not an immediate revenue generator.
Net debt increased sequentially following the Lumen fiber acquisition. AT&T ended the first quarter with $11.96 billion of cash and cash equivalents and total debt of $138.41 billion. The time interest earned ratio has decreased to 4.8 from 5 in the fourth quarter of 2025. At the end of the first quarter, the company had a current ratio of 0.92 and a cash ratio of 0.24. It indicates the company may face challenges in meeting short-term debt obligations.
Estimate Revision Trend of TEarnings estimates for AT&T for 2026 and 2027 have remained unchanged over the past 60 days.
Image Source: Zacks Investment Research
Key Valuation Metric of TFrom a valuation standpoint, AT&T appears to be trading relatively cheaper compared to the industry and trading below its mean. Going by the price/earnings ratio, the company shares currently trade at 8.52 forward earnings, lower than 60.11 for the industry and the stock’s mean of 11.49.
Image Source: Zacks Investment Research
End NoteStrong fiber momentum and wireless customer additions are major growth catalysts. The convergence strategy is boosting customer retention. AI-ready network expansion supporting enterprise demand is a positive. However, stiff competition and elevated debt levels are major concerns for investors. Monetization of AI-ready infrastructure remains a long-term prospect. High capital investment to support infrastructure expansion may impact free cash flow growth to some extent. With a Zacks Rank #3 (Hold), AT&T appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of AT&T (T +0.07%) have been under pressure this year, down 17%. The stock is trading near its 52-week low despite the company's recent financial performance being strong. Concerns about Space Exploration Technologies (also known as Spacex) taking market share and luring away customers with Starlink appear to be weighing on the telecom stock of late.
Earnings are on deck for AT&T, with the company's second-quarter numbers due to come out on July 22, which could calm investors' fears. Could it be a good time to buy the stock before then, while its valuation is low and its yield is high, at around 5.4%?
Image source: Getty Images.
Could a strong earnings report fix what ails AT&T's stock? AT&T is a slow-growing business. It isn't likely to generate double-digit growth in a quarter unless it's due to an acquisition or some surprise development. In the first quarter, which covered the first three months of the year, its revenue was up just under 3% year over year. And that's the kind of growth the company is forecasting for its service revenue this year: low single-digits.
That doesn't, however, mean that the stock can't surge if it delivers strong results, as it did back in January when it posted an earnings beat.
T data by YCharts
Big moves, however, aren't the norm for AT&T, for what's typically a fairly stable, low-volatility stock to own. What is encouraging is that there also haven't typically been large declines after earnings, either. And with plenty of bearishness seemingly priced in due to SpaceX and to how its Starlink business may impact AT&T's growth, expectations may already be low -- and that could work to the advantage of investors who buy AT&T stock today.
Is AT&T's stock a steal of a deal right now? Due to its sharp decline in price, AT&T's stock is now trading close to a multi-year low. Its price-to-earnings multiple of seven is also far below the S&P 500 average of 25. While slow-growing telecom stocks don't normally trade at high multiples, it's still a fairly low valuation for a quality stock.
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AT&T provides some attractive value for investors, plus, with a high-yielding dividend, the stock could be a great deal today, as the market may be overreacting to the risk from Starlink, which still could have a long way to go in taking enough subscribers from AT&T to truly put a dent in its business. For long-term investors, buying AT&T stock before earnings may prove to be a good, low-risk move to make right now.
Looking for a stock that has been consistently beating earnings estimates and might be well positioned to keep the streak alive in its next quarterly report? Visa (V - Free Report) , which belongs to the Zacks Financial Transaction Services industry, could be a great candidate to consider.
This global payments processor has seen a nice streak of beating earnings estimates, especially when looking at the previous two reports. The average surprise for the last two quarters was 4.04%.
For the most recent quarter, Visa was expected to post earnings of $3.09 per share, but it reported $3.31 per share instead, representing a surprise of 7.12%. For the previous quarter, the consensus estimate was $3.14 per share, while it actually produced $3.17 per share, a surprise of 0.96%.
Price and EPS Surprise
For Visa, estimates have been trending higher, thanks in part to this earnings surprise history. And when you look at the stock's positive Zacks Earnings ESP (Expected Surprise Prediction), it's a great indicator of a future earnings beat, especially when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Visa currently has an Earnings ESP of +0.29%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #2 (Buy) indicates that another beat is possibly around the corner.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
"Fundamentally, the company is fine" when it comes to Walmart (WMT), says Charles O'Shea. On the investor side, he argues "the P/E is way up there," making some question current valuations.
