Track market-moving stories before they get noisy

GBP/USD Bounce in Focus as USD/CAD and GBP/CAD Offer Clues
Markets are eagerly awaiting September’s US inflation figures later today. Naturally, inflation is expected to heat up given the rise in crude oil prices amid renewed tensions in the Middle East. But with the US dollar already rallying to recent cycle highs on hawkish Fed bets, CPI may need to exceed elevated expectations to justify further gains.

This generally creates a ‘for or against the USD’ environment for FX majors, as correlations strengthen and price action becomes increasingly driven by the US dollar. But among the FX majors, GBP/USD has caught my eye for a potential bounce, given the price action clues from USD/CAD and GBP/CAD.

View related analysis:

USD/CAD Rally Looks Stretched, But CAD Bears Eye AUD and GBP
AUD/USD Stuck Below 70c Amid Hawkish RBA, Weak Business Sentiment
Gold Hints at Quiet Accumulation Despite Persistent US Dollar Strength
Swissy Attracts Safe-Haven Bets, AUD Shorts Surge to Record High | COT report

USD/CAD Technical Analysis: US Dollar vs Canadian Dollar
The daily chart shows a strong rally from the September low to last week’s high, delivered in a remarkably straight line. Yet with no meaningful pullback so far, and signs of a shakeout emerging ahead of US inflation data, USD/CAD may finally be primed for a retracement.

USD/CAD has traded within a volatile, sideways range of around 100 pips, with Tuesday’s bearish engulfing candle being the most volatile of the range. Combined with bearish divergences on the daily RSI (2) and RSI (14), both in overbought territory, it might not take much of a CPI miss for bears to retain control.

Note that the 2025 high, weekly S2 pivot and 20-day EMA converge around 1.4500, making this a potential downside target for bears during the anticipated retracement.

USD/CAD Outlook: Bears Eye Break Below Range Support
However, the 4-hour chart shows the weekly S1 pivot providing support near the range lows for now. And with US CPI looming, the dollar could attract a last-minute bid ahead of the release, allowing for some bullish mean reversion within the range.

But while prices remain within the range and below its high, the near-term bias favours a downside break towards the 1.4150 support cluster.

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Source: ICE, TradingView

GBP/CAD Technical Analysis: British Pound vs Canadian Dollar
Granted, price action is a little messy on the daily chart – but GBP/CAD retains a bullish structure overall. The weekly chart shows the uptrend recently found support around the 50-week EMA with a spike low, while momentum has since broken higher from a bearish corrective channel.

That said, a rickshaw doji formed last week, and prices are now retracing against the bullish range expansion candle. Though with several support levels nearby, I am seeking evidence of a swing low on the daily chart.

GBP/CAD has formed a two-day pullback within Friday’s bullish range, while holding above the 10- and 20-day EMAs for now. The monthly pivot point sits just above 1.8800, so I’m waiting for bullish momentum to return, potentially paving the way for a move towards monthly R1 at 1.8966 or the 1.9000 handle.

Source: ICE, TradingView

GBP/USD Technical Analysis: British Pound vs US Dollar
Interestingly, if my assumptions of a pullback in USD/CAD and a rebound in GBP/CAD prove correct, it should bode well for GBP/USD. And the fact that Cable has now produced two rickshaw dojis on the weekly chart near the bottom of its range, around the 1.3200 handle, also supports my hunch for a bounce.

The daily chart shows a volatile shakeout over the past 13 days. Much like a dog violently shaking a toy to wrestle it from someone's hand, markets can behave in a similar way before finally breaking free. Given we're seeing a volatile shakeout near range lows while support levels continue to hold, my assumption is that GBP/USD could be preparing for a bounce.

Tuesday's bullish engulfing candle could provide the trigger, particularly if today's US CPI report allows the dollar to pull back from its recent rally.

Source: ICE, TradingView

NEW YORK, Oct. 13, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against AST SpaceMobile, Inc. (“AST” or the “Company”) (NASDAQ: ASTS) and certain officers. The class action, filed in the United States District Court for the Western District of Texas, Midland-Odessa Division, and docketed under 26-cv-00378, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired AST securities between March 4, 2025 and July 15, 2026, both dates inclusive (the “Class Period”), seeking to recover damages caused by Defendants’ violations of the federal securities laws and to pursue remedies under Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, against the Company and certain of its top officials.

If you are an investor who purchased or otherwise acquired AST securities during the Class Period, you have until November 13, 2026 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Danielle Peyton at [email protected] or 646-581-9980 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.

[Click here for information about joining the class action]

AST, together with its subsidiaries, designs and develops the constellation of BlueBird satellites in the United States (“U.S.”). The Company provides a cellular broadband network in space for direct access by smartphones for commercial use and other applications, as well as for government use. In addition, its SpaceMobile service provides cellular broadband services to end-users who are out of terrestrial cellular coverage.

At all relevant times, Defendants touted AST’s purportedly unique competitive advantages and leadership position in the satellite direct-to-cellular (“D2C”) market. In particular, throughout the Class Period, Defendants touted AST’s business and financial prospects as purportedly the only established space-based cellular broadband network for mobile phones.

Defendants’ assurances regarding AST’s purportedly durable competitive position in the satellite D2C market came into question in September 2025, when American telecommunications company EchoStar Corporation (“EchoStar”) announced that it had entered into a definitive agreement with SpaceX, an American aerospace manufacturer and space transportation company, to sell its AWS-4 and H-block spectrum licenses (the “EchoStar Transaction”). In connection with the EchoStar Transaction, SpaceX and EchoStar agreed to enter into a long-term commercial agreement, enabling EchoStar’s Boost Mobile subscribers—through its cloud-native 5G core—to access SpaceX’s next generation D2C service provided by its telecommunications subsidiary Starlink Services, LLC (“Starlink”).

SpaceX commands a dominant position in the global aerospace and orbital launch industry, with the ability to produce and launch numerous satellites at scale. Its subsidiary Starlink provides a broadband internet satellite constellation that accounts for roughly 54% of all active satellites in Earth’s orbit, with approximately 9,821 Starlink satellites currently active in low Earth orbit. Viewed in combination with its considerable resources, SpaceX’s entry into the satellite D2C market was potentially a threat to AST’s commercial aspirations.

Following the EchoStar Transaction, however, Defendants continued to assure investors and the market that AST remained in a competitive class of its own, with the Company poised to realize significant revenues and profits in the near-term. Likewise, Defendants continuously represented that AST’s capital and liquidity position was sufficient to meet its strategic and business goals at all relevant times, notwithstanding the heightened competitive pressures it faced following the EchoStar Transaction.

The complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) AST’s increasing capital requirements were likely to increase the Company’s debt load and share dilution with greater frequency and at greater scale than Defendants had signaled to investors; (ii) accordingly, Defendants had overstated the sufficiency of AST’s capital and liquidity position to achieve its strategic and business goals; (iii) Defendants likewise overstated the durability of AST’s competitive position in the satellite D2C market; (iv) even following the EchoStar Transaction, Defendants continued overstating AST’s competitive position in the satellite D2C market; (v) AST was experiencing slow user adoption in the U.S. and Japan; (vi) the foregoing was likely to have a significant negative impact on the Company’s business and financial prospects; and (vii) as a result, Defendants’ public statements were materially false and misleading at all relevant times.

The truth began to emerge on September 8, 2025, when UBS issued a report downgrading AST to a “Neutral” from “Buy” recommendation, as well as cutting its price target on the Company to $43.00 from $62.00, mainly citing heightened competitive pressures related to the EchoStar Transaction, which “fortifies [Starlink’s] position in the space to cellular market and increases risk for AST[] as it drives utilization on its nascent constellation[.]”

Following the release of UBS’s report, AST’s Class A common stock price fell $3.86 per share, or 9.47%, to close at $36.91 per share on September 9, 2025.

On October 21, 2025, AST issued a press release “announc[ing] its intent to offer . . . $850.0 million aggregate principal amount of convertible senior notes due 2036 (the ‘Notes’) in a private offering”, and that it “intends to grant the initial purchasers of the Notes . . . an option to purchase . . . up to an additional $150.0 million aggregate principal amount of Notes.” The press release disclosed that AST would use the proceeds from this offering “for general corporate purposes, including without limitation funding the deployment of AST SpaceMobile’s worldwide constellation of satellites in anticipation of adding incremental strategic markets for its SpaceMobile Service.”  (Emphasis added.)

Later the same day, AST issued another press release “announc[ing] the pricing of $1.0 billion aggregate principal amount of convertible senior notes due 2036 (the ‘Notes’) in a private offering”, noting that “[t]he size of the offering has been increased from the previously announced $850.0 million principal amount of Notes”, while reiterating the same intended use for the net proceeds from the offering.

Following these disclosures, AST’s Class A common stock price fell $7.26 per share, or 9.24%, to close at $71.35 per share on October 22, 2025.

On January 6, 2026, Scotiabank issued a report downgrading AST to a “Sell” recommendation, as well as its rating to “Sector Underperform” from “Sector Perform”, citing, inter alia, significant competition from Starlink and “[e]vidence of slow user adoption in the U.S. and Japan[.]”

Following the release of Scotiabank’s report, AST’s Class A common stock price fell $11.76 per share, or 12.06%, to close at $85.73 per share on January 7, 2026.

On February 11, 2026, AST issued a press release “announc[ing] its intent to offer . . . $1.0 billion aggregate principal amount of convertible senior notes due 2036 (the ‘Notes’) in a private offering”, and that it “intends to grant the initial purchasers of the Notes . . . an option to purchase . . . up to an additional $150.0 million aggregate principal amount of Notes.” The press release disclosed that AST intended to use the proceeds from the offering “for general corporate purposes, including without limitation, accelerating the deployment of our controlled spectrum bands on a global basis, monetizing the capabilities of our proprietary technology to capture the evolving commercial opportunities related to artificial intelligence, enhancing investment in government space opportunities in the U.S., reducing higher interest debt, and pursuing opportunistic investments to accelerate our SpaceMobile Service and capabilities.”  (Emphasis added.)

The next day, AST issued another press release announcing the pricing of the foregoing offering at “an initial conversion price of approximately $116.30 per share of AST SpaceMobile’s Class A common stock, which represents a premium of approximately 20% to the last reported sale price of AST SpaceMobile’s Class A common stock on February 11, 2026.”

Following these disclosures, AST’s Class A common stock price fell $14.70 per share, or 15.17%, to close at $82.22 per share on February 12, 2026. 

Then, on July 15, 2026, AST issued a press release “announc[ing] its intent to offer” yet another “$1.0 billion aggregate principal amount of convertible senior notes due 2034 (the ‘Notes’) in a private offering”, and that it “intends to grant the initial purchasers of the Notes . . . an option to purchase . . . up to an additional $150 million aggregate principal amount of Notes.” The press release disclosed that AST intended to use the proceeds from the offering to, inter alia, “pursue an expanding universe of growth initiatives and secure additional access to orbit for its space-based cellular broadband network, including partnerships and/or acquisitions to further vertically integrate its business and mitigate risks associated with third-party launch providers.” (Emphasis added.)  The press release further disclosed that the Company “currently does not have any understandings or agreements with respect to any such strategic transactions.”  (Emphasis added.)

Later the same day, AST issued another press release announcing the pricing of the foregoing offering. Specifically, “$1.0 billion 1.625% convertible senior notes due 2034 . . . [at] an initial conversion price of approximately $79.57 per share of AST SpaceMobile’s Class A common stock, which represents a premium of approximately 20.0% over the last reported sale price of AST SpaceMobile’s Class A common stock on July 15, 2026”, as well as “[c]apped call transactions . . . [at] an initial cap price of $149.20 per share of AST SpaceMobile’s Class A common stock, which represents a premium of 125.0% over the last reported sale price of AST SpaceMobile’s Class A common stock on July 15, 2026.”

Following the foregoing disclosures, AST’s Class A common stock price fell $11.30 per share, or 17.04%, to close at $55.01 per share on July 16, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered billions of dollars in damages awards on behalf of class members. See www.pomlaw.com. 

Attorney advertising.  Prior results do not guarantee similar outcomes.

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

Shares of clean energy company Oklo (OKLO -1.33%) are down big this year -- 55%. While the stock market has been doing well, Oklo's stock has been going in the opposite direction.

Many growth investors see significant growth potential for Oklo and believe it can benefit from opportunities related to investments in data centers for artificial intelligence (AI), which need reliable power sources. But that optimism appears to have faded, with the stock hitting a new 52-week low on Tuesday, at just above $31, a level it hasn't been at since May of last year.

The growth potential is still there for Oklo, but now its valuation is much lighter, with its market cap at just under $6 billion. Could now be an opportune time to buy this beaten-down energy stock?

Image source: Getty Images.

Oklo's mounting losses make the stock a risky optionIt may be multiple years before Oklo is generating any meaningful revenue, as its Aurora powerhouse at the Idaho National Laboratory is not expected to begin commercial operations until at least late next year. In the meantime, the company is incurring heavy losses and burning through cash.

Its operating loss through the first six months of the year totaled $124.2 million -- more than double the $45.9 million loss it posted during the same period a year ago. The reality is that as the business begins to scale and commences operations, its expenses may increase. As a result, it could take several years before the company may potentially be in a position to turn a profit.

For investors looking to own Oklo's stock, patience is definitely going to be a requirement.

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The stock may look cheaper, but it may still not be worth buyingAt $6 billion, Oklo's valuation remains fairly high for a business that's in such an early stage of its development. It highlights just how egregiously overpriced it was beforehand. While it has come down significantly in value, there's still plenty of room for the stock to fall even lower.

Rising interest rates and concerns of an AI bubble may have investors less willing to take risks on AI-related investments. Oklo is among the riskiest options in that regard, as it's largely a speculative buy at this stage.

Oklo may inevitably fall further in the weeks and months ahead. It reaching a new 52-week low is by no means a great buying opportunity. Another 52-week low could, after all, be right around the corner.

This is a stock I'd take a wait-and-see approach with, as it's far too risky an option for most investors to even consider right now.

Key Takeaways Oscar Health shares gained 14.9% in three months, supported by strong membership growth and improved margins.OSCR's membership surged 46.2% to 2.96 million, while its first-half medical loss ratio improved to 75%.Oscar's SG&A ratio fell to 14.7% from 17.2%, aided by technology efficiencies and disciplined cost management. Oscar Health, Inc. (OSCR - Free Report) shares have gained 14.9% in the past three months, outpacing the broader market. The advance has coincided with rapid membership growth, better medical economics and lower administrative expense ratios.

The next test is execution. Oscar must sustain share gains and underwriting discipline while navigating Affordable Care Act (ACA) market contraction, membership cleanup, seasonality and a valuation that already reflects higher expectations.

Oscar's Share Gains Strengthen the Bull CaseOscar ended the second quarter of 2026 with 2.96 million members, up 46.2% year over year. That growth came even as broader ACA membership declined about 12%, indicating substantial share capture in a contracting market.

OSCR's Pricing Discipline Lifts Underwriting QualityOscar's first-half 2026 medical loss ratio improved to 75% from 83% a year earlier. Management attributed the improvement to disciplined pricing, stronger current-year performance and favorable prior-period reserve development.

That mix matters because membership growth is more valuable when medical costs remain controlled. Oscar expects a full-year 2026 medical loss ratio of 81%-82%, implying a higher second-half cadence but still reflecting better economics than the prior-year first half.

Oscar's Tech Leverage Adds Margin SupportThe first-half selling, general and administrative ratio fell to 14.7% from 17.2%. Fixed-cost leverage, disciplined expense management and technology-driven efficiencies helped expenses grow more slowly than the membership base.

Oscar also reported 98.7% first-pass claims accuracy, with most claims processed in under 48 hours. Artificial intelligence initiatives across benefits, billing, claims, clinical care and member support could add further scalability without proportionate headcount growth.

The Zacks Consensus Estimate for 2026 and 2027 EPS represents an increase of 208.3% and 21% respectively.

Image Source: Zacks Investment Research

Oscar's Ratings Back Growth but Momentum Is MixedThe three-month advance can continue if Oscar converts share gains into durable underwriting and operating leverage.

Oscar currently carries a Zacks Rank #1 (Strong Buy), which reflects favorable near-term earnings-estimate revision trends. It also has a VGM Score of A, Growth Score of A and Value Score of B, all favorable readings under the Style Score framework.

The Momentum Score of C is less supportive than an A or B and tempers the picture after the recent price gain. Continued fundamental execution therefore remains important even with a top Zacks Rank and favorable overall Style Scores.

Other Stocks to ConsiderElevance Health, Inc. (ELV - Free Report) and UnitedHealth Group (UNH - Free Report) are two other top-ranked stocks. Both carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for 2026 earnings of Elevance Health has moved north in the last 30 days while that for UnitedHealth witnessed no movement in the same time frame.

In terms of share price movement, Elevance Health and UnitedHealth Group have lost 1.1% and 11%, respectively, in the past three months.

A judge has ruled that Apple will gain expedited access to OpenAI’s hiring materials in the trade secrets-focused lawsuit the iPhone maker filed against OpenAI in July.

Specifically, the court will allow Apple to view documents associated with OpenAI’s interviews with former Apple employees who applied for roles within its consumer hardware and robotics groups ahead of the rumored launch of OpenAI’s first hardware device.

These documents could include interview checklists, guides, instructions, manuals, and scripts, as well as technical presentations and records showing that interview discussions had included references to Apple technology or components.

The court gave OpenAI five days to turn over materials it has already collected and 14 days for any other materials related to this request, agreeing with Apple that these documents should be expedited.

The case comes as OpenAI develops a consumer hardware device that could one day potentially rival the iPhone — or smartphones more generally — if the AI device becomes a central part of consumers’ lives and how they engage with software and services.

In its lawsuit, Apple accused OpenAI of a pattern of theft, which includes direct complaints about former employees using Apple laptops to download confidential material and files that contained information about unannounced technologies, features, and products, including technical specifications, engineering presentations, and proprietary project data.

Apple also said that former Apple employees at OpenAI coached others considering leaving Apple for OpenAI on what information to bring to their interviews, among other allegations.

U.S. District Judge Edward Davila didn’t greenlight all of Apple’s requests for expedited access to OpenAI documents and messages relevant to the case. But he did rule that Apple could access the interview materials, alongside private LINE messages (from a messaging app) between individuals named in the case, including OpenAI employees Chang Liu and Alyssa Peng.

The judge also approved depositions for Liu and Peng, along with a third individual, OpenAI’s chief hardware officer, Tang Yew Tan. All three are former Apple employees.

However, the judge denied Apple’s request to expedite its access to OpenAI’s research and development in specific areas, like metal finishes and power management. He also denied several of Apple’s broader discovery requests, like access to OpenAI’s hardware research or information about what its former employees created while working at OpenAI.

That denial isn’t final, though; the judge left the door open for Apple to narrow its requests and try again.

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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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Scaleway's proposed Danish site will use HGX B300 systems to serve customers seeking EU-hosted AI capacity. Summary

Copenhagen expands Nvidia’s European distribution without establishing the size or timing of related sales.

Nvidia, the AI-computing and networking supplier NVDA, secured another planned Blackwell deployment through Scaleway's Copenhagen expansion, according to Reuters on October 13. Shares traded at $225.67, down 0.3%, at 10:29 a.m. ET. The project adds another European destination for Nvidia's hardware. But without a disclosed order value or system count, investors have little basis to calculate its contribution to sales.

The hardware packs plenty of muscle. Scaleway selected HGX B300, and Nvidia's documentation specifies eight Blackwell GPUs per baseboard, each carrying 288GB of memory. That totals 2.304TB of GPU memory per baseboard. Those specifications explain the computing capacity of each unit. They do not reveal the size of Scaleway's purchase. For investors, the missing numbers matter more than another impressive specification sheet.

Nvidia's GF Score of 95 out of 100 shows strong profitability and growth, while the weaker GF Value reading makes valuation the clear pressure point. That is the tension here: a powerful business can still carry a demanding price. European demand for locally hosted AI computing could widen Nvidia's customer base, but the next useful evidence is concrete—installation volumes, launch dates and follow-up orders. More deployment locations support the growth story; the dollars will determine how much this project matters.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

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Visa Inc (NYSE:V) stock hit new all-time highs this week, which is great news for investors in the credit card company. The news isn’t so good for Greg Abel, the man who succeeded Warren Buffett as CEO of Berkshire Hathaway Inc (NYSE:BRK)(NYSE:BRK).

Abel Sells Visa Stock EarlyAbel sold off the entire position in Visa stock in the first quarter of 2026, a stock that previously represented the 13th largest position in Berkshire’s investment portfolio at the end of 2025.

Berkshire Hathaway first bought Visa stock in the third quarter of 2011.

Taking the investment portfolio from 42 to 29 positions in the first quarter, Visa was one of many stocks cut in Abel’s first quarter as the CEO of the conglomerate.

Berkshire sold 8,297,460 V shares sometime in the first quarter. The filing does not disclose exactly when or at what price the sale happened; it only has to report which quarter the transaction occurred in.

Visa stock traded between $294.32 and $358.62 in the first quarter and ended the first quarter trading at $302.24 per share.

Based on the quarter’s trading range, the sale would have been between $2,441,278,681.20 and $2,975,635,105.20.

Today, the Visa position, if held, would be worth $3,264,220,764.

This means the Visa position sold in the first quarter cost Berkshire Hathaway $288.59 million to $822.94 million in profits compared with holding it now.

Read Next

Visa Stake HistoryWhile that sounds like a big miss, Abel has invested in other stocks and increased positions in other winners, which may have offset the losses from selling Visa early.

The Visa position was also a big winner for Berkshire Hathaway and sometimes the best investors take profits before the positions become losers. So in this case, Abel didn’t lose money on the Visa trade; he could have made even more if he’d held.

Berkshire Hathaway disclosed buying 2.29 million Visa shares on Nov. 14, 2011.

Over the years, Berkshire bought Visa stock nine times and sold it six times, according to data from Stock Circle.

This includes the conglomerate adding 573,000 more shares in the fourth quarter of 2011. The conglomerate then sold 2.53 million shares, or 88% of the position, in the first quarter of 2012.

The fund added to the Visa position in subsequent quarters, including a large 7.38 million-share purchase in the first quarter of 2015.

Before the recent sale, Berkshire’s last Visa transaction was selling 1.27 million shares in 2021.

Going back to the initial purchase of 2.29 million Visa shares in the third quarter of 2011. Those shares were bought at an average price between $19.81 and $23.21, adjusted for a 2015 stock split.

The shares were sold in the first quarter of 2026 in a range of $295.52 to $357.56.

This means Berkshire Hathaway made between 1,173.2% and 1,704.9% on its initial Visa shares.

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Photo by Primakov via Shutterstock

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

United Airlines is getting rid of one path to achieve elite status in 2027 and making its top tier harder to reach.

The Chicago-based airline is removing the ability for MileagePlus members to earn status partially based on flight segments flown in a calendar year for 2027. Instead, starting Jan. 1, United will only consider the number of points members earn based on Premier qualifying points earned from eligible flight spending, award travel and eligible United credit card spending.

United announced the change Tuesday in emails to MileagePlus members and on its website. The change aims to simplify how customers earn Premier status, according to the email obtained by CNBC that United sent to members.

Previously, members could gain status in the lowest elite tier, Premier Silver, with a combination of 15 flight segments and 5,000 points earned in a year, or with 6,000 points. Now, customers will only be able to achieve the status through points at the 6,000 point threshold.

The number of Premier qualifying points it will take for members to reach the Premier Gold and Platinum tiers through points will also stay the same as the previous points-only option. However, to reach United's highest rewards tier, Premier 1K, members now need 32,000 qualifying points, up from 28,000 in 2026.

Flyers earn one Premier qualifying point, or PQP, per dollar spent on United base fares and upgrades, and for every 100 miles they redeem for travel on United flights. United Chase cardholders also earn points when they spend money with their card.

MileagePlus members will still have to take at least four flights on United or United Express jets in a year to be eligible for Premier status.

In an interview with travel website The Points Guy, United's President of MileagePlus Jarad Fisher called the flight segments metric an "old relic," saying that the airline "thought it made more sense for them to have one consistent metric ... that they could focus on across the board between their flight activity, their engagement in the airline."

United also announced Tuesday that United cardholders who have Premier status will get a head start by automatically receiving 5% of the points needed to reach the status level they earned the previous year when a new year begins.

United earlier this year overhauled the way travelers earn miles to reward customers holding its credit cards. The carrier also slashed earnings for basic economy flights, following earlier changes to the same practice by American Airlines and Delta Air Lines. United previously upped the thresholds required to earn Premier status in 2024 for the 2025 qualification year.

UnitedHealth Group Inc. (NYSE:UNH) says its Medicaid business is bottoming and expects core Medicaid margins to improving after 2026.

UnitedHealthcare CEO Tim Noel told the company’s third-quarter earnings call that 2026 should be the trough year, now projected to be moderately better than minus 1%. Management said it expects margins to improve in 2027 and reach target levels by 2028.

UnitedHealth’s Medicare Advantage RatingsLast Friday, shares of health insurance companies, including UnitedHealth, traded higher after the U.S. Centers for Medicare & Medicaid Services (CMS) awarded five- and four-star ratings to plans offered by UnitedHealth, Clover Health Investments Corp (NYSE:CLOV) and Humana Inc. (NYSE:HUM).

This recognition comes as Humana reaffirmed its fiscal year 2026 adjusted EPS guidance and issued optimistic comments about fiscal years 2027 and 2028.

Network Adjustments Amid Rising CostsTo address rising costs, UnitedHealthcare and CVS Health Corp. (NYSE:CVS)‘s Aetna plan to tighten their Medicare Advantage networks by 2027.

In an Oct. 4 note, UnitedHealthcare President Bobby Hunter emphasized the need to respond to systemwide strain, citing higher medical and drug bills.

New Medicare Plans with $0 PremiumsTo expand access, UnitedHealthcare introduced its 2027 Advantage plans on Oct. 1, featuring $0 premiums and broader benefits.

The insurer aims to lower out-of-pocket costs and expand plan options for seniors. Over 94% of Medicare-eligible individuals will have access to a UnitedHealthcare plan, and 90% can choose a $0-premium plan.

The rollout includes updated UCard perks and $0 copays for primary care visits and Tier 1 prescription drugs.

Read also

UnitedHealth Raises Guidance: What It Means for XLV and Other Healthcare ETFs UnitedHealth Stock Wobbles Despite 61% Profit Jump, Boosted Outlook (CORRECTED) UnitedHealth Says Wall Street May Be Underestimating Its 2027 Earnings Potential Image: Shutterstock

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Micron (MU -3.62%) may be entering a new paradigm. The company operates in a cyclical industry, but Micron is taking steps to reduce its cyclicality over the next few years. This could transform Micron into a viable investment option and make it well worth buying stock in, as it looks ready to soar over the next few years.

But by how much? Let's take a look.

Image source: The Motley Fool.

A few comments guide Micron's trajectory
There has been no shortage of estimates regarding the strength of the artificial intelligence build-out. Some projections come from its peers and clients in the industry, while others come from its own management. During Micron's latest quarterly earnings report, management noted that they expect the "supply demand conditions to be much tighter in FY 2027 and 2028 than they were during 2026." That's a notable statement, as 2026's conditions were pretty tight. This led to soaring memory chip prices in 2026, and it could lead to even more expensive chips in the future.

However, Micron isn't sitting idle. It's racing to build more production facilities and expects its Idaho fabrication facility to begin producing chips in mid-2027, with its second Idaho facility starting production in late 2028. However, Micron still projects that memory chips will be in short supply. So, if Micron can increase its output dramatically while maintaining today's high prices, it could lead to incredible growth for the company. But it's not done there.

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Micron is starting to sign long-term customer agreements that are locking in floor and ceiling prices for memory chips through 2030. These are also take-or-pay agreements, so Micron is locking in revenue streams. Some of these agreements extend into 2031, indicating an even longer AI growth trajectory.

One long-term AI growth trajectory projection comes from Nvidia, which has repeatedly told investors to expect $3 trillion to $4 trillion in global AI data center capital expenditures annually by 2030. In 2026, Nvidia expects the big five AI hyperscalers to spend nearly $800 billion. If you estimate what others beyond the big five are spending, it's easy to see total capital expenditures sitting around $1 trillion this year.

So, the AI market could triple by 2030. This has huge implications for Micron, as its stock could be ready to skyrocket.

Micron is cheap and has huge growth
First off, Micron has hardly any growth priced into its stock for next year. It only trades at 5.6 times forward earnings.

MU PE Ratio (Forward) data by YCharts

The market is still pricing in a cyclical downturn in the near future, even though Micron has already told investors it won't happen anytime soon. This could lead to the stock at least tripling by the end of 2027, simply by rising to a reasonable valuation. Combine that with the AI market tripling to quadrupling as a whole by 2030, and there is a massive amount of upside baked into the stock.

So, how much could a $2,500 investment in Micron be worth by 2030? If all of the projections stated above come true, when Micron's fabrication facilities come online and start producing a large number of chips as expected, I think investors can expect the stock to grow more than 5-fold. How? First, Micron starts to trade at a reasonable 20 times earnings. I think this is somewhat realistic, as Micron has entered into long-term purchasing agreements with its clients that will reduce the effects of cyclical downturns. As a result, the market will give it a more respectable premium. That takes care of the stock rising about threefold to fourfold.

For the remainder of its growth, I'd point toward Nvidia's projection that data center capital expenditures will triple to quadruple by the time 2030 rolls around. That will mostly be from more computing chips needed, and every computing chip needs memory, potentially sourced from Micron. With that much growth ahead, I think it's pretty reasonable to expect Micron's business to double or triple. That would suggest a $2,500 investment in Micron could be worth $12,500, which makes the stock an absolute no-brainer buy at today's prices.

Micron is taking steps to ensure it isn't as cyclical, and this could make it a strong investment in the AI revolution.

RAPID CITY, S.D., Oct. 13, 2026 (GLOBE NEWSWIRE) -- Black Hills Corp. (NYSE: BKH) today announced that its natural gas utility subsidiary in Arkansas received approval from the Arkansas Public Service Commission of new rates. The new rates will provide recovery of approximately $147 million of system investments since the utility’s last general rate filing in 2023 and operational costs required to deliver safe, reliable natural gas service for over 189,000 Arkansas customers in more than 100 communities in Arkansas.

“This approval supports our ability to deliver on our commitment to serve our Arkansas customers with the safe and reliable natural gas service they depend on and support ongoing growth needs in the state,” said Linn Evans, president and CEO of Black Hills Corp. “We are proud of our solid track record of delivering for the needs of our customers, and we remain diligently focused on maintaining dependable natural gas service in Arkansas.”

The new rates will generate approximately $17.9 million of new annual revenues. The new rates, effective Oct. 12, 2026, are based on a return on equity of 9.8% and capitalization of 47.5% equity and 52.5% debt.

Black Hills Corporation
Black Hills Corp. (NYSE: BKH) is a customer-focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.37 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. More information is available at www.blackhillscorp.com.

Investor Relations
Sal Diaz
605-399-5079
[email protected]

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Caution Regarding Forward-Looking Statements
This news release includes “forward-looking statements” as defined by the Securities and Exchange Commission, or SEC. We make these forward-looking statements in reliance on the safe harbor protections provided under the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, included in this news release that address activities, events or developments that we expect, believe or anticipate will or may occur in the future are forward-looking statements, including anticipated revenues from the new rate increase. These forward-looking statements are based on assumptions which we believe are reasonable based on current expectations and projections about future events and industry conditions and trends affecting our business. However, whether actual results and developments will conform to our expectations and predictions is subject to a number of risks and uncertainties that, among other things, could cause actual results to differ materially from those contained in the forward-looking statements, the risk factors described in Item 1A of Part I of our 2025 Annual Report on Form 10-K filed with the SEC, and other reports that we file with the SEC from time to time.

New factors that could cause actual results to differ materially from those described in forward-looking statements emerge from time-to-time, and it is not possible for us to predict all such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. We assume no obligation to update publicly any such forward-looking statements, whether as a result of new information, future events or otherwise.

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HOUSTON & MIDLAND, Texas--(BUSINESS WIRE)--Kinetik Holdings Inc. (NYSE: KNTK) (“Kinetik” or the “Company”) has declared a cash dividend of $0.81 per share, or $3.24 per share on an annualized basis. The announced quarterly dividend will be paid on Friday, October 30, 2026 to shareholders of record as of market close on Friday, October 23, 2026.

Kinetik will host its third quarter 2026 results conference call on Thursday, November 5, 2026 at 8:00 am Central Time (9:00 am Eastern Time). The Company will issue its earnings release after market close on Wednesday, November 4, 2026. The text of the earnings release, the accompanying presentation and link to the live webcast will be available on the Company’s website at www.ir.kinetik.com. A replay of the conference call will be available on the website following the call.

Kinetik previously implemented a Dividend Reinvestment Plan (the “DRIP” or the “Plan”) open to all shareholders. A complete description of the Plan is included in the Company’s Form S-3 registration statement filed with the SEC on July 12, 2024 and is posted on the Company’s website at www.kinetik.com.

To participate, shareholders of record may register online by visiting the Broadridge website at shareholder.broadridge.com/KNTK or by contacting Broadridge Corporate Issuers, LLC, the Plan Administrator, by telephone toll free from inside the United States at 1-(877)-830-4936 or outside of the United States at 1-(720)-378-5591. Shareholders may also contact the Plan Administrator in writing at Broadridge Shareholder Services, Broadridge Corporate Issuer Solutions, LLC, PO Box 1342, Brentwood, NY 11717-0718. Please include a reference to Kinetik Holdings Inc. in all correspondence. Shareholders who own common stock through a broker should consult their broker regarding participation in the Plan.

About Kinetik Holdings Inc.

Kinetik is a fully integrated, pure-play, Permian-to-Gulf Coast midstream C-corporation operating in the Delaware Basin. Kinetik is headquartered in Houston and Midland, Texas. Kinetik provides comprehensive gathering, transportation, compression, processing and treating services for companies that produce natural gas, natural gas liquids, crude oil and water. Kinetik posts announcements, operational updates, investor information and press releases on its website, www.kinetik.com.

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New York, New York--(Newsfile Corp. - October 13, 2026) - Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against AppLovin Corporation ("AppLovin" or the "Company") (NASDAQ: APP) on behalf of investors that purchased or otherwise acquired AppLovin securities between February 12, 2026 and August 5, 2026 (the "Class Period").

CLICK HERE TO JOIN THE CASE

If you are an investor in AppLovin and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing [email protected] or by calling (646) 315-9003.

DEADLINE REMINDER: If you are a member of the proposed Class, you may move the court no later than November 16, 2026 for an opportunity to be lead plaintiff for the purported class. If you have losses we encourage you to contact us to learn more about the lead plaintiff process. You need not seek to become a lead plaintiff in order to share in any possible recovery.

The complaint alleges, among other things, that throughout the Class Period, Defendants made false and/or misleading statements and/or failed to disclose that "(i) the generative AI video creative feature for the Company's AppLovin Ads platform was subject to significant development delays, making its release on the Company's timeline unlikely," and "(ii) Defendants overstated the constancy with which AppLovin was improving its AI models."

According to the complaint, the truth began to emerge on July 13, 2026, when a Bank of America Securities analyst published a note raising concerns over the rollout of AppLovin Ads to all advertisers. Following publication of the note, AppLovin's stock price fell $64.13 per share, or 12.65%, on July 13, 2026. Then, on August 5, 2026, according to the complaint, AppLovin reported revenue below consensus estimates and also revealed that its generative AI video tool was "still [a] work in progress." On this news, AppLovin's stock price fell $82.13 per share, or 19.66%, on August 6, 2026.

WHY CONTACT KAPLAN FOX?

Kaplan Fox & Kilsheimer LLP is a nationally recognized law firm focused on complex litigation, with offices in New York, Oakland, Los Angeles, Chicago, and New Jersey. Founded in 1956, the firm has spent more than 50 years prosecuting securities, antitrust, and consumer protection actions in federal and state courts nationwide, recovering more than $10 billion for clients and the classes it has represented.

Kaplan Fox is widely regarded as one of the nation's premier plaintiffs' securities litigation firms and has received recognition from Chambers and Partners, Benchmark Litigation, Super Lawyers, and Lawdragon. Serving as lead or co-lead counsel in many landmark cases, the firm has secured some of the largest recoveries in the history of securities litigation, including a $2.425 billion recovery on behalf of Bank of America shareholders in In re Bank of America—the largest recovery ever obtained for claims under Section 14(a) of the Securities Exchange Act—$800 million recovered for the Arkansas Teacher Retirement System and other pension funds in ATRS v. Allianz Global Investors, and a $475 million settlement in In re Merrill Lynch.

For decades, Kaplan Fox has represented public pension funds, institutional investors, businesses, and individuals in high-stakes litigation. Through its successful advocacy and precedent-setting victories, the firm has helped shape important areas of securities and corporate law while advancing accountability and protecting investor interests.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. Past results do not guarantee future outcomes.

If you have any questions about this Notice, your rights, or your interests, please contact:

Contacting or submitting information to Kaplan Fox & Kilsheimer LLP does not create an attorney-client relationship, nor an obligation on the part of Kaplan Fox to retain you as a client.

https://www.kaplanfox.com/case/applovin-nasdaq-app-class-action-lawsuit-learn-more-now/

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/318761

Source: Kaplan Fox & Kilsheimer LLP

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The GBP/JPY extends its modest gains for two straight days, up 0.16% as the cross-pair continues to consolidate near the 210.00 figure with no clear bias, while the Relative Strength Index (RSI) drifts higher towards its 50-neutral level, an indication that buyers are stepping in.

GBP/JPY Price Forecast: Technical outlookAs of writing, a downslope resistance trendline near 209.80-210.00 is being tested by buyers, who were quickly rejected on Monday after hitting a weekly high of 209.99.

Worth noting that the day’s price action shows that buying pressure is building after GBP/JPY reached a low of the day (LOD) below 209.00, respecting a support trendline tested three times, an indication that further upside is seen.

A decisive breakout above 210.00. puts into play the September 18 cycle high of 211.28. Further gains are seen beyond that area, with the 50-day SMA seen as a key supply zone at 211.84.

Conversely, for a bearish continuation, GBP/JPY must drop below 209.00 and clear the support trendline, which caps losses, with the next support at 206.89, the September 30 low.

GBP/JPY Price Forecast: Technical outlook

GBP/JPY daily chart Japanese Yen Price Today The table below shows the percentage change of Japanese Yen (JPY) against listed major currencies today. Japanese Yen was the strongest against the US Dollar.

USDEURGBPJPYCADAUDNZDCHFUSD-0.38%-0.34%-0.17%-0.45%-0.34%-0.46%-0.26%EUR0.38%0.03%0.21%-0.05%0.03%-0.07%0.13%GBP0.34%-0.03%0.15%-0.13%-0.01%-0.14%0.10%JPY0.17%-0.21%-0.15%-0.27%-0.16%-0.28%-0.06%CAD0.45%0.05%0.13%0.27%0.11%-0.01%0.21%AUD0.34%-0.03%0.01%0.16%-0.11%-0.12%0.09%NZD0.46%0.07%0.14%0.28%0.00%0.12%0.23%CHF0.26%-0.13%-0.10%0.06%-0.21%-0.09%-0.23% The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Japanese Yen from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent JPY (base)/USD (quote).

Bank of America expects Ciena Corporation (NYSE:CIEN), the optical networking equipment maker, to deliver revenue growth of 35% to 40% in the calendar year 2026 as demand for artificial intelligence infrastructure outstrips available supply.

The bank maintains a 'buy' rating on the shares with a $550 price target, supported by rising cloud-provider spending and expanding opportunities to connect data centres.

Bank of America forecasts revenue from direct cloud customers will grow 69% at the midpoint of its estimates, making this growth the main driver of Ciena's expected expansion.

The bank identifies Ciena's Reconfigurable Line System (RLS) and Waveserver platforms as key growth engines, as customers invest in optical infrastructure to move increasing volumes of data between cloud facilities.

Pluggable optical transceivers, which convert electrical signals into light for data transmission, are also expected to grow threefold year on year, while Meta's data centre out-of-band management business could generate $200 million in the calendar year 2026.

The outlook depends partly on Ciena's ability to deliver equipment into a market where supply constraints continue to limit shipments despite strong customer demand.

Bank of America also sees opportunities to sustain annual growth above 30% over the longer term through Hyper-Rail, connections between geographically distributed data centre clusters and new customers adopting data centre out-of-band management solutions.

These opportunities could expand Ciena's addressable market beyond traditional telecommunications networks as cloud operators build infrastructure to support increasingly demanding AI workloads.

An expected backlog of more than $10 billion provides an additional buffer, giving Ciena greater visibility into future demand and potential revenue conversion.

The bank's assessment points to a business with substantial growth opportunities, although the pace of expansion will depend on supply availability and the successful delivery of new customer programmes.

COLUMBIA, Md., Oct. 13, 2026 (GLOBE NEWSWIRE) -- Tenable® Holdings, Inc. (NASDAQ: TENB), the exposure management company, today announced it has entered into a credit agreement (the “Credit Agreement”) that provides for a $400.0 million senior secured revolving credit facility (the “Revolving Facility”). The Revolving Facility, combined with the previously announced convertible note financing in September, completes the refinancing of Tenable’s prior credit agreement consisting of a previously outstanding Term Loan B facility and replaces the revolving credit facility which matured in July. The Revolving Facility is initially undrawn and is put in place to give Tenable additional flexibility with its capital allocation.

Revolving loans under the Credit Agreement will mature on the fifth anniversary of the effective date, on October 13, 2031, subject to a springing maturity date of 91 days inside the maturity of other material indebtedness, as well as certain exceptions and limitations.

JPMorgan Chase Bank, N.A., acted as the administrative agent, collateral agent and L/C issuer for the Credit Agreement. Cooley LLP acted as legal counsel to Tenable.

About Tenable
Tenable® is the exposure management company, exposing and closing the cybersecurity gaps that erode business value, reputation and trust. The company’s AI-powered exposure management platform radically unifies security visibility, insight and action across the attack surface, equipping modern organizations to protect against attacks from IT infrastructure to cloud environments to critical infrastructure and everywhere in between. By protecting enterprises from security exposure, Tenable reduces business risk for over 40,000 customers around the globe. Learn more at tenable.com.

Forward Looking Statements
This press release contains “forward-looking” statements, as that term is defined under the federal securities laws, including statements concerning the Revolving Facility, the maturity thereof, and the anticipated use of any borrowings therefrom. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond Tenable's control. Tenable's actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to those detailed in Tenable's Form 10-K filed with the Securities and Exchange Commission (“SEC”) for the year ended December 31, 2025, in Tenable's quarterly reports on Form 10-Q for the quarters ended March 31, 2026 and June 30, 2026 and in other filings and reports that Tenable may file from time to time with the SEC. The forward-looking statements included in this press release represent Tenable's views as of the date of this press release. Tenable anticipates that subsequent events and developments will cause Tenable's views to change. Tenable undertakes no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing Tenable's views as of any date subsequent to the date of this press release.

Contact Information:

Investor Relations
[email protected]

Media Relations
[email protected]

Key Takeaways Axon's adjusted EBITDA margin rose 110 basis points to 26.8% in Q2 2026 despite rising operating expenses.AXON's revenues surged 35.3% to $904.4 million, fueled by strong product demand and software adoption.Axon targets a 28% adjusted EBITDA margin by 2028, supported by annual revenues of $6 billion.
Axon Enterprise, Inc. (AXON - Free Report) continues to face escalating operating costs. In the second quarter of 2026, its cost of sales rose 35.2% year over year to $357.9 million, while selling, general and administrative expenses increased 20.1% to $291 million. Research and development expenses also climbed 28.4% to $209 million.

Despite these cost pressures, Axon's adjusted EBITDA margin improved 110 basis points year over year to 26.8%, supported by robust revenue growth and global tariff refunds. In the second quarter, its total revenues jumped 35.3% to $904.4 million, surpassing the Zacks Consensus Estimate of $868.4 million. Strong demand for Dedrone, TASER 10 and Axon Body 4 products, along with increased adoption of software solutions, fueled the growth.

Axon is witnessing growing demand beyond U.S. state and local markets, with international bookings nearly tripling year over year in the second quarter. The company also secured major TASER 10 contracts across the Middle East and Europe.

Axon’s emphasis on cost discipline, sales growth and operational efficiency is expected to support margin expansion in the quarters ahead. For 2026, the company projects an adjusted EBITDA margin of approximately 25.5%, largely unchanged from the prior year. Moving ahead, Axon aims to achieve an adjusted EBITDA margin of about 28% by 2028, backed by annual revenues of $6 billion.

Peer’s Margin performanceAmong its major peers, Kratos Defense & Security Solutions, Inc. (KTOS - Free Report) is facing cost pressure. In the second quarter of 2026, its cost of product sales increased 33.2% year over year, while its SG&A expenses rose 35.5%. Nevertheless, Kratos Defense’s gross profit margin expanded 80 bps to 21.8% in the quarter. Kratos Defense’s higher margins were driven by 30.5% revenue growth generated during the quarter.

Teledyne Technologies Incorporated’s (TDY - Free Report) cost of sales rose 6.4% year over year in second-quarter 2026. The company’s SG&A expenses also increased 12.8% year over year. Despite the rise in costs, Teledyne Technologies’ adjusted operating margin increased 120 basis points to 23.4% in the quarter. The year-over-year increase was supported by Teledyne’s 9.8% revenue growth.

AXON’s Price Performance, Valuation and Estimates
Image Source: Zacks Investment Research

Shares of Axon have gained 8.8% in the past six months against the industry’s decline of 16.7%.

Image Source: Zacks Investment Research

From a valuation standpoint, AXON is trading at a forward price-to-earnings ratio of 42.01X, above the industry’s average of 31.63X. Axon carries a Value Score of F.

Image Source: Zacks Investment Research

Key Takeaways HHH shares fell 9.3% YTD as elevated financing costs and intense real estate competition took a toll.HHH's Q2 net new home sales rose 12%, while master-planned communities EBT grew 32% to $134.7M.HHH acquired Vantage for $2.1B to expand into insurance; Vantage's first-half net income grew 94%. Howard Hughes Holdings Inc. (HHH - Free Report) stock has plunged 9.3% in the year-to-date period, weighed down by elevated financing costs and intense competition.

Rivals like Sky Harbour Group (SKYH - Free Report) and Cyrela Brazil Realty (CYRBY - Free Report) are steadily broadening their services, challenging Howard Hughes’ dominance in real estate development. SKYH stock has gained 5.9%, while CYRBY has increased 27.4% in the year-to-date period.

Investors are now questioning whether Howard Hughes’s struggles represent a deeper problem or an opportunity to buy into a long-term recovery story. Let’s delve deeper into this.

Image Source: Zacks Investment Research

Why Do HHH Shares Fall?Howard Hughes’ shares have faced pressure partly amid concerns over its elevated cost of capital and capital-intensive real estate operations. Management acknowledged that the company’s non-REIT structure has constrained its ability to generate returns on certain real estate investments. Moreover, the company's second-quarter 2026 interest expenses increased 4.8% year over year to $45.8 million. Persistently high financing costs could limit financial flexibility, constrain development investments and weigh on profitability.

Intense competition in the real estate development market has also contributed partly to Howard Hughes’ stock decline. Competition from other master-planned community developers and residential projects pressures land pricing, home sales and development margins. Moreover, competing commercial properties constrain rental growth and occupancy rates.

HHH's Healthy Housing Demand and Land Sales Support GrowthNevertheless, Howard Hughes continues to benefit from healthy housing demand across its master-planned communities despite broader housing market challenges. In the second quarter of 2026, net new home sales increased 12% year over year across the portfolio. The Woodlands Hills recorded 34% growth, followed by Bridgeland at 17% and Summerlin at 2%. The improvement across these communities reflects continued homebuyer interest, providing a favorable backdrop for future residential land sales.

Supported by steady demand, Howard Hughes reported a 32% year-over-year increase in master-planned communities segment earnings before taxes (EBT) to $134.7 million in the second quarter of 2026. Land sales revenues increased to $170.9 million from $125 million, while residential land closings rose to 119.7 acres from 110.5 acres a year earlier. In the first half of 2026, the company sold 206.7 residential acres at an average price of $1.2 million per acre. With an estimated $5.7 billion in margin-adjusted residual land value across its wholly owned communities, the company remains well-positioned to generate future earnings from its land portfolio.

HHH's Vantage Acquisition Creates New Growth OpportunitiesHoward Hughes expanded its business through the $2.1 billion acquisition of Vantage in June 2026, establishing a second operating platform focused on specialty insurance and reinsurance. The acquisition creates opportunities to diversify earnings and support long-term growth beyond real estate.

Vantage reported strong business momentum, with second-quarter 2026 gross and net written premiums increasing 29% year over year to $473 million and $325 million, respectively. Net earned premiums also grew 22% to $295 million, reflecting continued business expansion. For the first half of 2026, Vantage’s net income increased 94% to $86 million, while underwriting income nearly doubled to $23 million.

The company is also strengthening Vantage's investment strategy with a $300 million capital infusion. As of Aug. 31, 2026, its investment portfolio reached approximately $3.6 billion, with 37% allocated to common equities and 62% to cash and short-term investments. This approach, combined with disciplined underwriting, could support higher long-term investment returns and profitable growth.

HHH Shares Trading at Premium ValuationHoward Hughes shares are trading at a premium. In terms of forward 12-month P/E, HHH stock is trading at 17.38X compared with the Zacks Real Estate Development Market industry’s 11.70X.

Image Source: Zacks Investment Research

HHH’s Estimate Revisions Exhibit Positive TrendHoward Hughes’ estimate revisions reflect a positive trend for full-year 2026. The Zacks Consensus Estimate for HHH’s 2026 earnings per share has moved 71.5% upward to $4.75 over the past month.

Image Source: Zacks Investment Research

How to Play the HHH Stock?Howard Hughes’ healthy housing demand, robust land sales and Vantage acquisition support its long-term growth prospects. Although elevated financing costs, competition and premium valuation remain concerns, the positive trend in earnings estimate revisions reinforces optimism about its outlook. Given these growth catalysts, the recent 9.3% decline in HHH shares presents an attractive buying opportunity for investors.

Howard Hughes currently sports Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Key Takeaways ABM stock jumped 28.2% in six months, with FY26 revenues and EPS projected to grow 5.3% and 16.3% y/y.High-growth infrastructure revenues rose 26% organically, while WGNSTAR added $76.9M in FY26.ABM raised its FY26 free cash flow guidance to $210M, but debt and market softness pose risks.
ABM (ABM - Free Report) stock has gained 28.2% over the past six months, outpacing the industry's 2.4% dip. The Zacks S&P 500 Composite has rallied 12.4% over the same period.

6-Month Share Price Performance                                                                  Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ABM’s fiscal 2026 revenues is $9.2 billion, implying 5.3% year-over-year growth. For fiscal 2027, the anticipated growth rate is 3%.

The consensus mark for earnings per share (EPS) for fiscal 2026 is pinned at $4, suggesting a 16.3% year-over-year jump. The bottom line is expected to increase 7.5% to $4.3 in fiscal 2027.

Factors That Augur Well for ABM’s SuccessFootprints in High-Growth Infrastructure Markets: ABM is raising exposure to semiconductor, microgrid and data center markets. In the first nine months of fiscal 2026, these businesses generated nearly $775 million in revenues, representing more than 11% of the company’s top line. Revenues increased 26% organically year over year and about 40% including WGNSTAR, with double-digit blended operating margins. Semiconductor revenues rose 65% organically year over year, microgrids increased 17% and data centers grew 8%.

WGNSTAR Strengthens Semiconductor Capabilities: The WGNSTAR buyout contributed $76.9 million to revenues in the first nine months of fiscal 2026 after closing in February. Client-base expansions and the WGNSTAR acquisition resulted in M&D revenues increasing 17.6% year over year in the fiscal third quarter, comprising 7.8% organic growth and 9.9% acquisition-related growth.

Financial Flexibility: The free cash flow (FCF) was $199.6 million in the first nine months of fiscal 2026 compared with $42.4 million in the prior-year period, driven by improved working-capital management and ERP stabilization. Management increased the fiscal 2026 reported FCF guidance to $210 million from the previously provided $185 million. Leverage lowered sequentially to 2.9X in the fiscal third quarter from 3.2X in the second quarter, reaching the company’s below-3X target one quarter earlier than planned.

Risks Faced by ABMMacroeconomic Headwinds Could Limit Growth: ABM remains exposed to commercial real estate conditions and airline economics. Business & Industry revenues declined 2.6% year over year in the third quarter of fiscal 2026, reflecting the large U.K. client exit and continued West Coast softness. Management anticipates the revenue trend to persist in the fourth quarter and does not expect the segment to return to organic growth until around mid-fiscal 2027.

Higher Debt Lowers Flexibility: ABM ended the third quarter of fiscal 2026 with $1.8 billion in total borrowings, although this increased sequentially from $1.9 billion in the second quarter. Interest expenses increased year over year to $29.5 million from $25.3 million in the fiscal third quarter, reflecting higher average debt following WGNSTAR. For the first nine months, interest expenses increased 13.2% year over year to $81.6 million from $72.1 million.

ABM’s Zacks Rank & Stocks to ConsiderThe company currently carries a Zacks Rank #3 (Hold).

Better-ranked stocks in the broader Zacks Business Services sector include WEX (WEX - Free Report) and Concentrix (CNXC - Free Report) .These two companies presently have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

WEX has a long-term earnings growth expectation of 11.3%. WEX delivered a trailing four-quarter earnings surprise of 4.3%, on average.

Concentrix has a long-term earnings growth expectation of 5.4%. CNXC delivered a trailing four-quarter earnings surprise of 1.9%, on average.

Key Takeaways REYN leverages its presence in 95% of U.S. households and leading brands to drive growth.Pricing actions and lower operating costs boosted REYN's adjusted EBITDA in Q2 despite soft retail volumes.REYN targets cost savings through manufacturing efficiency, procurement and supply-chain upgrades. Reynolds Consumer Products Inc. (REYN - Free Report) continues to focus on strengthening its established brands, expanding product innovation and improving operational efficiency amid a challenging consumer environment. Pricing actions, productivity initiatives and disciplined cost management remain central to its growth strategy. The company is also leveraging its strong retail relationships and broad household penetration to reinforce its market position and support long-term profitability.

Brand strength and product innovation remain important growth drivers. Reynolds Consumer has a presence in approximately 95% of U.S. households, with leading brands such as Reynolds Wrap and Hefty. The company continues to invest in these brands, develop products that address changing consumer needs and strengthen its value proposition through retail partnerships. Innovation across cooking, food storage, waste management and disposable tableware provides opportunities to reinforce customer loyalty and support category growth.

Pricing and revenue management are also playing an important role in protecting profitability. The company has implemented pricing actions to recover higher commodity costs, particularly aluminum, while working to limit the impact on consumer demand. In the second quarter of 2026, pricing actions and lower operating costs helped support adjusted EBITDA growth, despite lower retail volumes and higher selling, general and administrative expenses. However, the ability to maintain pricing without further weakening demand remains important to its growth outlook.

REYN is also emphasizing manufacturing efficiency, procurement savings, waste reduction and supply-chain improvements. These initiatives are intended to generate sustainable cost savings and create room for continued investments in brand building, innovation and other strategic priorities. In addition, the company realigned its business segments in 2026 to improve operating efficiency, sharpen its innovation focus and pursue better opportunities in adjacent categories.

Reynolds Consumer is balancing near-term cost pressures and softer retail volumes with investments aimed at strengthening its competitive position. Continued execution on pricing, productivity and innovation will be critical to sustaining earnings growth and improving profitability over the long term.

REYN’s Price Performance, Valuation and EstimatesReynolds Consumer’s shares have gained 3.3% in the past six months compared with the industry’s 1.9% growth.

Image Source: Zacks Investment Research

From a valuation standpoint, REYN trades at a forward price-to-earnings ratio of 13.45X compared with the industry’s average of 14.12X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for REYN’s 2026 earnings per share (EPS) indicates a year-over-year decline of 3.1%, while that of 2027 EPS shows growth of 3.8%. The company’s EPS estimate for 2026 and 2027 has been stable in the past 30 days. 

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Reynolds Consumer currently carries a Zacks Rank #3 (Hold).

Key Picks in the Consumer Discretionary SpaceDuluth Holdings Inc. (DLTH - Free Report) , which deals in casual wear, workwear and accessories for men and women, currently sports a Zacks Rank #1 (Strong Buy). You can see see the complete list of today’s Zacks #1 Rank stocks here.

Duluth Holdings delivered a trailing four-quarter earnings surprise of 122.5%, on average. The Zacks Consensus Estimate for DLTH’s current financial-year EPS indicates a rise of 18.6% from the year-ago number.

Columbia Sportswear (COLM - Free Report) engages in marketing and distribution of outdoor and active lifestyle apparel, footwear and accessories, and currently carries a Zacks Rank #2 (Buy).

The Zacks Consensus Estimate for COLM’s current financial-year sales is expected to rise 1.9% from the corresponding year-ago reported figure. COLM delivered a trailing four-quarter earnings surprise of 36%, on average.

Ralph Lauren Corporation (RL - Free Report) , which is a designer and marketer of premium lifestyle products, currently carries a Zacks Rank of 2.

RL delivered a trailing four-quarter earnings surprise of 8.7%, on average. The Zacks Consensus Estimate for Ralph Lauren’s current financial-year sales indicates growth of 7.6% from the year-ago number.

Bouncing back from an inauspicious start to the week that saw the stock finish 3.8% lower from Friday's close, BigBear.ai (BBAI +3.04%) stock is rising today after the artificial intelligence (AI) company announced it has received several new awards.

As of 12:47 p.m. ET, BigBear.ai stock was up 4.6%, retreating from an earlier rise of 11.7%.

Image source: Getty Images.

BigBear.ai has secured more than 25 contract awards totaling $225 millionHaving achieved numerous successes over the past three months, BigBear.ai announced today that it has won more than 25 contract awards valued at more than $225 million since July. In addition to homeland security, the contract awards stem from defense, intelligence, and federal civilian customers.

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In the press release addressing the contract awards, Kevin McAleenan, BigBear.ai's CEO, stated, "Technology does not translate into capability without operational insight, and these awards come from customers who understand both the depth of our experience and our differentiated technology."

Is BigBear.ai stock a buy on the bullish news?Unsurprisingly, shares rocketed higher on this morning's news -- especially when appreciating the significance of the contract awards. To put it in perspective, it's helpful to note that, in its second-quarter 2026 financial results presentation, BigBear.ai reported a backlog of $269.6 million as of June 30.

While the news is certainly positive, AI investors shouldn't rush in and start a position solely based on the new contract awards. Since the company is unprofitable and fails to generate positive operating cash flow, and these contract awards don't guarantee significant improvement in either metric, BigBear.ai stock is best left to those with higher risk tolerances.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Celestica stock fell more than 5% on Tuesday, reaching its lowest level since September 21 as AI-related companies broadly declined. Shares traded at $480 in Toronto, about 14.5% below their October peak. So, is this the start of a bear market or will it buy the dip as its earnings report nears?

Celestica shares remained under pressure as investors dumped companies in the artificial intelligence (AI) industry. Nvidia, the biggest company in the industry, dropped by 0.20% to $225, while AMD fell by 20 basis points. Other top AI companies like Broadcom, Marvell Technology, and Lumentum also retreated. 

The weakness accelerated after Broadcom’s CEO suggested that many investors in the AI space were acting as casino gamblers. He also warned that Western companies were facing significant competitive pressure from Chinese firms. 

Celestica is one of the biggest companies in the AI space. It operates in two segments, Connectivity & Cloud Solutions (CCS) and Advanced Technology Solutions (ATS). CCS, its biggest business, makes 800G networking switches and custom compute hardware for hyperscalers like Amazon, Meta, and Microsoft. Its ATS business builds solutions for other industries like aerospace and defense. 

On the positive side, Celestica’s business has continued doing well, and analysts expect the trend will continue. The most recent results showed that its revenue growth accelerated in the second quarter. It made $4.70 billion in the second quarter, up by 62% from the same period last year. 

Its revenue was higher than its previous guidance and what analysts were expecting. The management also raised its guidance again, and analysts expect the trend to continue in the foreseeable future. Management expects the third-quarter revenue to be between $5.25 billion and $5.5 billion.

For the year, the company expects that its revenue will jump to $20.5 billion, higher than the previous guidance of $19 billion. This surge will be much higher than the $12.3 billion that it made last year. Analysts expect its revenue to hit $35 billion next year. 

Most Wall Street analysts are highly bullish on the company. Bernstein’s Daniel Zhu initiated his coverage with an outperform rating and a target that is 42% above this level. Other top analysts, including from TD Bank, Royal Bank of Canada (RBC), UBS Group, and Scotiabank, have a highly bullish view of the company, citing its revenue and profitability growth.

A key concern is that the company is highly overvalued. It has a forward price-to-earnings ratio of 31, higher than the sector median of 22. This multiple is higher than its five-year average of 18, and much high than other fast-growing companies like Micron, Nvidia, and SanDisk.

CLS stock chart | Source: TradingView

The weekly chart shows that Celestica shares peaked at $655 in June and then pulled back to the current $488. A closer look shows that it has formed a head-and-shoulders pattern, a common bearish reversal pattern. It is in the right shoulder section of this pattern. 

The stock is trading at the middle side of the Bollinger Bands indicator. At the same time, the Relative Strength Index (RSI) has formed a bearish divergence pattern. Therefore, the stock will likely have a bearish breakout, potentially to the key support level of $400. A drop below that price will point to more downside towards $300.

Coca-Cola has handed income investors a bigger check every year for six decades, but last year its dividend bill outpaced its free cash flow by billions. Whether that gap signals trouble or a one-time blip could define the next ten…

Coca-Cola (NYSE:KO | KO Price Prediction) marked its 63rd consecutive year of annual dividend increases in 2025. Its quarterly payment record backs that up: the per-share payout has stepped higher every year from $0.16 in 1999 to $0.53 in 2026. Income investors who already own the stock care less about the 2.27% yield than about whether the next decade of raises shows up. That depends on free cash flow, and the cash flow picture has improved in Coca-Cola’s favor in 2026.

Free Cash Flow Is Catching Back Up to the Payout Last year looked weak on paper. Coca-Cola paid $8.8 billion in dividends but generated only $5.296 billion in free cash flow. Most of that gap came from a one-time fairlife contingent consideration payment, which management took out from its 2025 cash outlook.

For 2026, Coca-Cola raised its free cash flow guidance to about $12.4 billion. The 2025 dividend bill would use roughly 71% of that. First-half free cash flow came in at about $6.9 billion, with net debt at 1.4 times EBITDA, below the company’s 2x to 2.5x target. Chief financial officer John Murphy said:

“Given the momentum of our business and the strength of our balance sheet, we have increased flexibility and optionality to continue to both reinvest in our business and return capital to share owners.”

Earnings Are Growing Faster Than the Dividend Earnings growth is outpacing dividend growth. The 2026 raise was about 3.9%, while management now guides comparable EPS up 9% to 10% from $3.00. The $2.12 forward dividend works out to about 64% of trailing EPS of $3.33. Second-quarter operating margin expanded to 34.9% from 34.1%. Murphy credited the shift to a lighter-asset model:

“The structural changes in our overall model becoming more asset-light has, as you know, been one of the primary drivers.”

Pricing, Volume and Currency Decide the Pace Second-quarter unit case volume rose 5%, and Coca-Cola Zero Sugar grew 16%. Chief executive Henrique Braun described a squeezed consumer:

“The lower income continues to be pressured, and we’ve seen that it’s really about value, not only pricing.”

Several other factors can work against growth. Currency adds about 3% to 2026 EPS, and that boost can reverse. The fourth quarter has six fewer days than a year ago. The IRS tax case is also still pending, though Murphy said, “We continue to have confidence that we will ultimately prevail.”

How Coca-Cola Compares With PepsiCo and Keurig Dr Pepper PepsiCo (NASDAQ:PEP) yields more, at 4.42%, and announced its 54th consecutive annual increase. But it cut its 2026 core EPS growth guidance to 2.5% to 3.5% as core operating margin contracted 35 basis points. Keurig Dr Pepper (NASDAQ:KDP) is carrying $30.4 billion in debt principal and 4.4x pro forma leverage after its JDE Peet’s deal, and it plans a separation in early 2027.

Coca-Cola’s main weakness is its price. At 29 times earnings, it costs more than PepsiCo at 21 times. Its shares are up 31.67% this year.

Verdict: Expect Steady Mid-Single-Digit Raises Yes, Coca-Cola can keep raising its dividend, and it has more room to do so than either peer. EPS is growing at more than twice the rate of the most recent raise. Cash flow is recovering after the one-time fairlife payment, and leverage is below management’s own target. That supports raises around the recent 4% rate for years. Annual increases will likely stay in that range rather than speed up, so investors who want a higher starting yield are taking on more risk in PepsiCo’s payout. For current holders, a reversal of the currency boost is the main threat to watch.

Contact [email protected] for any questions or corrections.

by Todd Bishop on

Apple’s HomeView smart display, shown with faces for a clock, FaceTime, photos, smart home controls and music. (Apple Image) Apple is going after Amazon’s smart home business on several fronts at once.

The iPhone and iPad maker on Tuesday unveiled HomeView, a $299 smart display that competes directly with Amazon’s Echo Show, along with a lineup of cameras, a video doorbell and a smart lock made by LG Electronics. That puts Apple in the core categories of Amazon-owned Ring for the first time.

Apple also announced a new Apple TV 4K and the HomePod mini 2, which will go up against Amazon’s Fire TV and Echo speakers.

Amazon made its own move into Apple’s territory last week, unveiling premium Alexa Tablets, including a Pro model that competes more directly with the iPad.

The new Apple HomeView has a 7-inch screen and comes in a tabletop version with a speaker base and a wall-mounted version. It recognizes up to six household members by their faces and switches to each person’s messages, calendar and apps.

It runs Siri AI, Apple’s rebuilt version of its voice assistant, which the company calls “profoundly more capable and conversational.” Pre-orders started Tuesday, and the device ships Nov. 13.

Amazon’s big lead: About two-thirds of U.S. smart speaker owners have an Amazon device, compared with about a quarter for Google and 7% for Apple, according to the latest data from Consumer Intelligence Research Partners, covering the 12 months ending in June. Apple’s share has stayed in the mid-single digits for years.

CIRP’s Michael Levin and Josh Lowitz wrote that Apple may go after people who don’t own a smart speaker rather than try to convert Amazon and Google customers. Only 57% of recent Apple buyers have a smart speaker of any kind, the firm found.

The HomeView is aimed at people already using Apple devices. Setup and the personal features require an iPhone or iPad. It won’t be sold in the European Union because Siri AI isn’t available there.

Apple is also hinting that its AI won’t stay free. A footnote in the HomeView announcement says certain Apple Intelligence features that rely on server-side models are subject to daily limits, with expanded access “available for a fee in the future.” Amazon’s Alexa+ is free with Prime or $19.99 a month on its own.

Competition for Ring: The new Apple Home Collection, designed with LG and Schneider Electric, includes a $249.95 LG video doorbell with two cameras, LG indoor, outdoor and floodlight cameras priced from $199.95 to $399.95, and a $349.95 LG deadbolt that unlocks automatically as its owner approaches, using ultra-wideband technology.

The accessories are set for release starting in December, with some arriving in early 2027.

Camera video history requires an iCloud+ storage plan, and Apple says there’s no separate camera subscription. Apple’s retail stores will also offer installation by ADT for an extra charge.

The LG lock was announced a week after Ring unveiled its first smart lock, a $249 deadbolt with no keyhole and a hand-turned dial that revives a dead battery. It’s due in the first quarter of next year. Ring also announced five new cameras priced from $69.99 to $219.99.

The LG lock includes a backup key slot. “If you have to have a key, it’s like, well, why have a smart lock?” Ring founder Jamie Siminoff told GeekWire last week.

Netflix (NFLX +0.33%) shareholders have had plenty of reasons to consider selling. Shares of the company are down by nearly 43% in the past year. Netflix's revenue growth is decelerating, engagement growth based on view hours remains modest, and Alphabet's YouTube reached a record 14.2% share of U.S. TV viewing in July 2026.

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Despite these challenges, if I owned Netflix stock today, I would not sell a single share. Netflix's share price has declined roughly 25% so far in 2026 (as of Oct. 9), but management still expects operating income to grow more than 20% this year. The company's forward price-to-earnings (PE) multiple has also contracted by nearly 33% from about 30.5 at the end of 2025 to roughly 20.3.

Netflix's profits have not collapsed. Instead, investors are simply paying much less for each dollar of the company's expected future earnings.

Netflix's engagement problem is not yet an earnings problem Netflix's worldwide viewing hours increased by only about 2% in the first half of 2026. Despite this, the company's revenue rose roughly 15% year-over-year to $24.8 billion. Revenue is currently growing faster than engagement, driven primarily by membership growth, pricing, and advertising.

Netflix has largely proved the demand for its ad-supported tier, with more than 60% of new subscribers in its ad markets choosing the plan. But the bigger unanswered question is monetization.

In Netflix's second-quarter earnings call, co-CEO Greg Peters said ad-tier average revenue per membership is still lower than that for the company's standard plan without ads. But the gap is narrowing. According to Visible Alpha, Netflix generated about $618 million in advertising revenue in the second quarter, up nearly 79.8% year-over-year. Yet, the revenue was 7.2% below consensus expectations. S&P Global noted that monetization of the ad-supported tier has progressed more slowly than anticipated.

I will become more concerned if weaker engagement starts driving softer pricing, slower ad monetization, higher churn, and weaker margins all at once. Currently, though, Netflix's financial results do not show that broad deterioration.

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Content economics also appear to have improved. Content amortization (portion of Netflix's content costs recognized as an expense in a given period) fell from nearly 39.2% of revenue in 2024 to about 34.4% in the first half of 2026. Hence, Netflix is generating more revenue for every dollar of content amortization.

Improving content efficiency is one of the key factors supporting profitability. The company's operating margin improved from 26.7% in 2024 to 29.5% in 2025. Management expects the operating margin to be 31.5% in 2026.

Netflix's 2027 earnings growth looks deceptively weak Wall Street currently expects Netflix to earn about $3.58 per share in 2026 and $3.80 per share in 2027, implying EPS growth of just over 6%.

But 2026 is an unusually high base for comparison. Netflix received a $2.8 billion termination fee after its Warner Bros. Discovery transaction was terminated. The company recorded the payment under interest and other income, below operating income. Netflix reported first-quarter diluted EPS of $1.23, well above its prior forecast of $0.76. The company said the upside came from stronger-than-expected operating income and the termination fee.

Using Netflix's 19% first-quarter effective tax rate and 4.29 billion diluted share count as a rough adjustment, I estimate the termination payment contributed about $0.53 per share after tax. Removing the one-time benefit from the current 2026 consensus estimate of $3.58 produces an adjusted EPS of roughly $3.05 per share. Against that figure, $3.80 of 2027 EPS would imply year-over-year growth closer to 24.6%, not 6%. Although Netflix does not report this adjusted EPS figure, it suggests that Netflix's underlying 2027 EPS growth could be much stronger than the headline consensus comparison implies.

Share repurchases could provide another boost to per-share earnings growth. Netflix spent $4.7 billion repurchasing 52.9 million shares in the second quarter. The company still had $27.1 billion of repurchase capacity remaining at the end of the second quarter.

Management has reiterated that returning excess cash through buybacks remains part of its capital allocation strategy. At today's lower share price, future repurchases could retire more shares for every dollar spent, potentially supporting faster per-share earnings growth.

Netflix's valuation looks more reasonable, but upside isn't guaranteed Netflix stock was trading at roughly 18.5 times Wall Street's current 2027 EPS estimate of $3.8 (as of Oct.9, 2026). While the valuation appears reasonable, Netflix is not obviously cheap.

The company expects about $12.5 billion of free cash flow in 2026. However, management raised the forecast from roughly $11 billion primarily due to after-tax benefit from the Warner Bros.-related termination payment. I therefore view the earlier $11 billion forecast as a better starting point for assessing recurring cash generation.

At Netflix's roughly $293 billion market capitalization, the company is trading at a price-to-free-cash-flow multiple of about 26.6, compared with roughly 23.4 using the headline $12.5 billion figure. Hence, while Netflix's lower earnings multiple may look attractive, its recurring cash flow valuation still leaves limited room for execution mistakes.

So, Netflix may not soar in 2027. Meaningful upside likely requires either earnings above current expectations or a significant expansion in the valuation multiple.

Analysts expect about $57 billion of 2027 revenue, up roughly 11% from the midpoint of Netflix's $51 billion to $51.4 billion 2026 guidance. If Netflix can combine higher-than-expected revenue growth with a stable or modestly higher operating margin and continued share repurchases, EPS could grow faster than current expectations.

Here's what would make me sell However, my thesis has a clear breaking point. I would become much more cautious if revenue growth slipped into the high single digits while the company's operating margins moved toward 30% or below in 2027. I would also reconsider selling if content amortization began consistently growing faster than revenue. But for now, I see slower growth, not deteriorating economics.