Elon Musk Loses Trillionaire Status As SpaceX Slide Cuts Net Worth By $50 Billion Ty Roush is a breaking news reporter based in New York City.
Jul 01, 2026, 12:33pm EDT
ToplineElon Musk on Wednesday lost his trillionaire status as sliding SpaceX shares lowered his fortune by more than $50 billion, the latest stock decline for the rocket maker despite newfound optimism from one of the best-known analysts of Musk’s Tesla.
A well-known analyst of Musk’s Tesla offered a bullish take for the rocket maker.
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Key FactsShares of SpaceX dropped 7.1% as of Wednesday afternoon, a reversal from the nearly 12% jump over the three previous trading sessions.
Another decrease in SpaceX’s share price cut Musk’s net worth by $57.8 billion to $995.2 billion, as Musk holds 4.8 billion SpaceX shares and another 350 million stock options with an exercise price of $8.40 per share.
When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?
Let's take a look at what these Wall Street heavyweights have to say about Apple (AAPL - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Apple currently has an average brokerage recommendation (ABR) of 1.91, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 43 brokerage firms. An ABR of 1.91 approximates between Strong Buy and Buy.
Of the 43 recommendations that derive the current ABR, 23 are Strong Buy and three are Buy. Strong Buy and Buy respectively account for 53.5% and 7% of all recommendations.
Brokerage Recommendation Trends for AAPL
Check price target & stock forecast for Apple here>>>
While the ABR calls for buying Apple, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.
In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.
In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.
In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Should You Invest in AAPL?In terms of earnings estimate revisions for Apple, the Zacks Consensus Estimate for the current year has remained unchanged over the past month at $8.74.
Analysts' steady views regarding the company's earnings prospects, as indicated by an unchanged consensus estimate, could be a legitimate reason for the stock to perform in line with the broader market in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Apple. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
It may therefore be prudent to be a little cautious with the Buy-equivalent ABR for Apple.
For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.
The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is assigned a rating of A, B, C, D, or F based on their value, growth, and momentum characteristics. Just like in school, an A is better than a B, a B is better than a C, and so on -- that means the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreFor value investors, it's all about finding good stocks at good prices, and discovering which companies are trading under their true value before the broader market catches on. The Value Style Score utilizes ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and a host of other multiples to help pick out the most attractive and discounted stocks.
Growth ScoreWhile good value is important, growth investors are more focused on a company's financial strength and health, and its future outlook. The Growth Style Score takes projected and historic earnings, sales, and cash flow into account to uncover stocks that will see long-term, sustainable growth.
Momentum ScoreMomentum traders and investors live by the saying "the trend is your friend." This investing style is all about taking advantage of upward or downward trends in a stock's price or earnings outlook. Employing factors like one-week price change and the monthly percentage change in earnings estimates, the Momentum Style Score can indicate favorable times to build a position in high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +23.94% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
Since the Scores were created to work together with the Zacks Rank, the direction of a stock's earnings estimate revisions should be a key factor when choosing which stocks to buy.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Apple (AAPL - Free Report) Apple’s business primarily runs around its flagship iPhone. The Services portfolio that includes revenues from cloud services, App store, Apple Music, AppleCare, Apple Pay, and licensing and other services now contributes a significant part of revenues.
AAPL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. AAPL has a Growth Style Score of B, forecasting year-over-year earnings growth of 17.2% for the current fiscal year.
For fiscal 2026, three analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.03 to $8.74 per share. AAPL boasts an average earnings surprise of +7.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, AAPL should be on investors' short list.
Apple’s recent price increases could be a harbinger for a years-long era of costlier electronics.
That’s according to a report Wednesday (July 1) from Kiplinger, which says a memory crunch it had warned of in March has only made smartphones and PCs more expensive.
The largest shift in the consumer electronics market so far, the report said, has come from Apple’s recent price hikes. The tech giant has raised prices on laptops and tablets between 17% and 30% this year, with higher iPhone prices likely for this year as well.
Apple CEO Tim Cook has blamed the increases on surging memory chip costs, saying he’s never witnessed anything like it in 40 years, the report added.
“We’re doing our best to mitigate the huge increases that are being passed to us, and we’ve been trying to shield our customers from the increases, but the situation has become unsustainable,” Cook told the Wall Street Journal last month.
The company’s most recent price increase came last week, with the cost of Macs increasing between 15% and 20%, and iPads climbing 15% to 25%, thanks to the skyrocketing costs of components used to power these devices.
“Tight memory supply, due to immense AI infrastructure demand, has pushed prices 3-4 times higher than they were at the end of 2024, with further rises likely,” William Kerwin, an analyst at Morningstar, wrote in a recent research note, per Kiplinger.
“Memory has accounted for about 10% of an iPhone’s cost, but inflation threatens to raise the cost of building an iPhone by 20% or more.”
The report notes that AI infrastructure is monopolizing the manufacturing capacity at memory chip makers, leaving much less capacity for consumer electronics. And AI will receive priority treatment over consumer products as new manufacturing capacity comes online.
It’s also not clear when the memory price hikes will end, the report added, citing a recent article from IDC analyst Soo Kyoum Kim.
“The supply-demand imbalance is expected to persist beyond 2027 in key segments,” Kim wrote, while Kerwin projected that memory inflation would “continue through 2028.”
Meanwhile, Reuters reported in early May that computers and electronics orders saw their best month in 25 years during March, a trend attributable to rise to soaring demand for these products as companies invest in AI.
Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
Zacks Premium also includes the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores is a unique set of guidelines that rates stocks based on three popular investing types, and were developed as complementary indicators for the Zacks Rank. This combination helps investors choose securities with the highest chances of beating the market over the next 30 days.
Based on their value, growth, and momentum characteristics, each stock is assigned a rating of A, B, C, D, or F. The better the score, the better chance the stock will outperform; an A is better than a B, a B is better than a C, and so on.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
You want to make sure you're buying stocks with the highest likelihood of success, and to do that, you'll need to pick stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B. If you like a stock that only has a #3 (Hold) rank, it should also have Scores of A or B to guarantee as much upside potential as possible.
The direction of a stock's earnings estimate revisions should always be a key factor when choosing which stocks to buy, since the Scores were created to work together with the Zacks Rank.
For instance, a stock with a #4 (Sell) or #5 (Strong Sell) rating, even one that boasts Scores of A and B, still has a downward-trending earnings forecast, and a much greater likelihood its share price will decline as well.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Meta Platforms (META - Free Report) Meta Platforms is the world’s largest social media platform. The company’s portfolio has evolved from the Facebook app to multiple apps, including photo and video sharing app Instagram and WhatsApp messaging app, largely through acquisitions. Along with in-house developed Messenger and newer services such as Threads, these products form Meta’s Family of Apps, which reached about 3.56 billion daily active people on average in March 2026.
META is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. META has a Growth Style Score of A, forecasting year-over-year earnings growth of 40.5% for the current fiscal year.
Four analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $0.60 to $33.01 per share. META boasts an average earnings surprise of +12.3%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, META should be on investors' short list.
Meta Platforms (NASDAQ:META | META Price Prediction) has had a rough first half of 2026, but our model sees a compelling risk-reward setup in mega-cap tech. With shares down 16.5% year to date and the AI capex narrative dividing investors, the pullback has gone too far.
Our 24/7 Wall St. price target for Meta is $796.59, implying 44.77% upside over the next 12 months. Our model’s rating is buy, with a confidence level of 90%, which we consider high.
24/7 Wall St. Price Target Summary Metric Value Current Price $550.25 24/7 Wall St. Price Target $796.59 Upside 44.77% Recommendation BUY Confidence Level 90% From $785 Peak to $550 Pullback Meta topped near $785 in August 2025 before drifting lower for ten months to down 13.3% over the past month and down 23.97% over the past year. The stock trades just 4% off its 52-week high of $793.65 on a calendar basis but well below recent peaks, with the 200-day moving average sitting at $650.02.
Q1 2026 fundamentals tell a different story. Revenue delivered revenue of $56.31 billion, up 33.08% YoY, with EPS of $10.44 versus a $6.66 consensus, a 56.79% beat. Underlying EPS was roughly $7.31.
Ad impressions rose 19% while average price per ad climbed 12%. Management raised 2026 capex guidance to $125 billion to $145 billion, fueling the “incinerating capital” narrative that gathered momentum in late June.
Why Bulls See a Breakout Ahead The bull case rests on Meta’s ad engine compounding while AI investment turns into monetizable products. Q1 saw Business AI weekly conversations rise to 10 million from 1 million at the start of 2026, the Value Optimization Suite cross a $20 billion annual run rate, and AI glasses daily active users triple year over year.
Zuckerberg framed the strategy bluntly: “We are on track to deliver personal superintelligence to billions of people.” Wall Street agrees, with 8 strong buys, 49 buys, and zero sell ratings. Our bull-case scenario points to $864.66 over 12 months, a 57.14% return.
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The Risks Worth Watching The bear case starts with capex. The $125 to $145 billion 2026 capex nearly doubles 2025 spending and pressures free cash flow, which fell 19.39% in 2025. Reality Labs lost $19.2 billion last year, and youth-related litigation trials in 2026 could be material. Polymarket traders assign only 0.5% probability to META hitting $700+ in June to near-term success.
Bulls counter that the forward P/E of 17 is undemanding, and capex feeds the Muse Spark model and custom silicon platform built with Broadcom that powers over 1 gigawatt of compute. Our bear scenario still produces $697.95, a 26.84% gain.
The Setup at Current Levels The 24/7 Wall St. price target of $796.59 reflects a confident buy rating. Meta trades at a forward P/E of 17 and PEG of 0.795 while compounding revenue at 33% with industry-leading margins.
The bull thesis rests on whether ad pricing power and engagement gains can fund the AI buildout without margin collapse. The bear case strengthens if capex spirals past $150 billion in 2027 with no monetization payoff. The risk-reward at $550 favors buyers.
Year 24/7 Wall St. Price Target 2026 $796.59 2027 $816.11 2028 $1,049.06 2029 $1,219.81 2030 $1,384.57 These projections assume Meta converts AI capex into monetizable products at its current pace. Significant upside or downside could result from agentic commerce traction, AI glasses adoption, or regulatory shocks from EU and US youth litigation.
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Meta Platforms shares META surged in trading on Wednesday following a report that the company is developing a cloud infrastructure business that would sell artificial intelligence computing power and AI models to external customers.
The proposed business would allow Meta to generate revenue from excess AI computing capacity, potentially creating a new source of income while expanding its presence in the fast-growing cloud infrastructure market.
Shares of Meta rose 10.6% in trading following the report.
According to Bloomberg, Meta is developing plans to sell access to AI computing infrastructure and hosted AI models through a new business built around its expanding data center network.
One option under consideration would allow customers to access AI models hosted on Meta's infrastructure, similar to Amazon Web Services' Bedrock platform.
Another would involve selling raw computing capacity, placing Meta in direct competition with AI-focused cloud providers such as CoreWeave and Nebius.
The initiative is part of Meta Compute, the company's internal effort to build and manage AI infrastructure.
The report weighed on companies that already provide AI computing services. CoreWeave fell about 14% in trading, while Nebius dropped 15%.
The move would also expand competition for the major cloud providers, including Amazon Web Services, Microsoft Azure, and Google Cloud.
Meta has significantly increased spending on artificial intelligence infrastructure as it pursues its goal of developing AI "superintelligence."
In April, the company raised its projected capital expenditure for the year by $10 billion to a range of $125 billion to $145 billion, citing "expectations for higher component pricing" and "additional data center costs."
The company has also committed billions of dollars to data centers and AI chips while entering computing agreements with companies including CoreWeave, Google, and Oracle.
A cloud infrastructure business could provide Meta with a way to monetize those investments beyond its core advertising business.
Unlike its cloud rivals, Meta has historically justified its AI spending primarily through improvements to its own products, while Amazon, Microsoft, and Google have long generated revenue by renting computing infrastructure to outside customers.
The report also comes as investors continue to monitor Meta's efforts to commercialize artificial intelligence through products such as its Meta AI chatbot.
Meta Chief Executive Officer Mark Zuckerberg previously acknowledged that selling excess computing capacity is a possibility if the company builds more infrastructure than it ultimately requires.
"It's definitely on the table," Zuckerberg said during a shareholder call in May. "Almost every week there are different companies that come to us from the outside asking us to both stand up an API service or asking if we have compute that they could buy from us at some premium to what we've bought it at."
"We haven't done that yet because we think we have a use for the compute," Zuckerberg said at the time. "But obviously if we get to a point where we feel that we have overbuilt, then that is an option that we have, and that is partially what gives us confidence in investing in building this out."
Zuckerberg has repeatedly argued that computing capacity remains one of the biggest constraints in the AI industry, supporting Meta's strategy of aggressively expanding its AI infrastructure while determining additional commercial uses for that capacity over time.
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Denise Moreno is stepping into Alex Schultz's CMO role at Meta. Meta Meta is getting a new CMO.
Denise Moreno is stepping into the role as Alex Schultz, the former CMO, becomes Meta's first chief data officer, the company shared Wednesday.
Moreno has had a lower profile, but isn't a stranger to the top job. She temporarily stepped into the CMO role last year when Schultz was preparing for Meta's FTC trial.
A 17-year marketing vet at Meta, Moreno most recently served as global SVP of consumer marketing and growth. Schultz called her his "quiet right hand on growth," crediting her with promoting Meta's products, including its AI glasses and Threads, while building its e-commerce capabilities.
In announcing her new role, Moreno said AI would be key to providing scale and speed to augment the company's human judgment.
Schultz is moving into the data officer role at a time when Meta, along with other tech giants, ramps up its AI spending. In November, Schultz defended the sector's investment level to Business Insider, saying it was "aggressive, but not crazy."
In his new role, he'll focus on everything from building data foundations to AI-powered analytics, experimentation, research, and decision-making.
"We've already made exciting progress — from Analytics Agent, now the most widely used AI agent inside Meta, to foundational work modernizing our analytics infrastructure — but I believe we're only at the beginning of what's possible," he wrote on LinkedIn.
At Cannes Lions in June, Schultz told Business Insider in an interview that the key to avoiding AI slop is the same as avoiding bad results in any area.
"It's only going to work if you are competent at using it," he said.
Meta recently took heat for an REI ad made with a Meta AI tool that showed a bike with two sets of handlebars. Meta declined to comment at the time.
AI won't be for all advertisers, Schultz said at Cannes Lions.
"When you think about AI, you're going to have three categories of things in the future, and I don't think these are particularly groundbreaking," he said. "You will have AI-only content. You will have creators who are enabled by AI, and you will have people and advertisers who swear not to use AI."
Schultz said he sees AI tools as an enabler of creativity and analytics.
"If you look at the most successful people in analytics, it's the ones who think of the right question to answer," he said. "And by the way, they can use the AI tools to turbocharge them."
Lara O'Reilly contributed reporting.
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Lucia Moses You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Lucia Moses covers the media and entertainment business, with a focus on creators. She's broken stories about MrBeast's business ambitions, Google's movie initiative, and Netflix's push into podcasts.Her reporting has won the Los Angeles Press Club's National Entertainment Journalism Awards.She previously worked at Digiday and Adweek and graduated from Cornell University.Reach her at [email protected], X at @lmoses, LinkedIn, or via phone/text/Signal at (917) 209-8549.Popular articles
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HomeIndustriesInternet/Online ServicesTech StocksTech StocksMeta’s reported interest in monetizing its AI infrastructure is leading investors to question the sustainability of neocloud business modelsJuly 1, 2026, 11:55 a.m. ET
Artificial-intelligence infrastructure providers like CoreWeave and Nebius Group may soon face stiff competition from a new kid on the block: Meta Platforms.
According to a Wednesday Bloomberg report, Meta META is developing an internal “Meta Compute” division to sell its excess cloud capacity. The company is reportedly considering charging developers to use models hosted directly on Meta’s infrastructure, as well as renting its raw compute capacity out in direct competition with existing neoclouds.
The artificial intelligence buildout has created one of the largest infrastructure races in technology history. Companies across the industry are spending hundreds of billions of dollars on data centers, GPUs, networking equipment, and energy capacity to support AI models. Annual AI infrastructure spending by the major hyperscalers is approaching $750 billion, as they, startups, and governments compete for compute power.
That spending wave created a new class of AI infrastructure companies known as “neoclouds.” These specialized providers built businesses around supplying GPU clusters and high-performance computing capacity faster than traditional cloud providers could deliver. But a report from Bloomberg this morning that Meta Platforms (NASDAQ:META | META Price Prediction) is exploring its own cloud business under its Meta Compute initiative sent shares of several AI infrastructure companies lower — raising a bigger question for investors: Is the neocloud opportunity shrinking just as quickly as it emerged?
Shares of Nebius Group (NASDAQ:NBIS), CoreWeave (NASDAQ:CRWV), and IREN (NASDAQ:IREN) are all declining following the news. Nebius and CoreWeave were down about 15% in morning trading, while IREN declined about 6.5%. Meta Platforms is up over 10%.
The market reaction reflects a simple concern: Meta is not just a customer anymore — it could become a competitor.
Neoclouds Built a Business Around AI’s Compute Shortage Neocloud companies exist because AI demand moved faster than traditional cloud capacity.
The biggest cloud providers — Amazon (NASDAQ:AMZN), Microsoft (NASDAQ:MSFT), and Alphabet (NASDAQ:GOOG) — remain dominant, but AI companies need GPU capacity immediately. That opened the door for companies focused almost entirely on AI workloads.
Here is how the major players compare:
Company Focus Key Customers/Partners Nebius Full-stack AI cloud, GPU clusters, AI infrastructure Meta, Microsoft CoreWeave Nvidia GPU-focused AI cloud Meta, OpenAI, Anthropic IREN Renewable-powered AI/HPC data centers Microsoft, AI customers Nebius gained attention after securing a deal with Meta worth up to about $27 billion over five years. Nvidia (NASDAQ:NVDA) has invested billions in the company. Nebius is building an AI-focused cloud platform designed around GPU infrastructure.
CoreWeave has followed a similar path. The company’s business model centers on Nvidia GPU availability and optimized AI computing environments. Its agreement with Meta reportedly totals about $21 billion, alongside partnerships involving OpenAI and Anthropic.
IREN took a different route. Originally focused on Bitcoin (CRYPTO:BTC) mining, the company has shifted toward AI and high-performance computing data centers, using renewable energy as part of its infrastructure strategy.
Meta’s Move Is a Risk — But Also a Validation Bloomberg reported that Meta is considering selling excess AI compute capacity through Meta Compute. The company could eventually offer raw GPU capacity or AI-related services. The plans remain early and could change.
The concern, though, is obvious. If Meta spends billions building AI infrastructure and then sells unused capacity, it could pressure pricing for companies whose business depends on renting GPUs.
But there is another side, too. Meta’s own AI ambitions are enormous. CEO Mark Zuckerberg has discussed building massive AI infrastructure to support Llama models and future “superintelligence” efforts. Meta has indicated it expects to build tens of gigawatts of AI capacity over time. Selling excess capacity would be a way to improve returns on those investments.
That strategy is not unusual. Companies with expensive infrastructure often monetize unused capacity. SpaceX (NASDAQ:SPCX), for example, uses its technology platform to serve outside customers through its Starlink business.
Surprisingly, Meta becoming a potential competitor also confirms the scale of the opportunity. Companies do not spend hundreds of billions of dollars building AI infrastructure because demand is disappearing.
The Bigger Risk Is Not Meta — It Is Supply and Execution Granted, neocloud investors need to understand the risks. These companies have attractive growth opportunities, but they also carry heavy capital requirements. Building AI data centers requires billions of dollars in GPUs, power infrastructure, and financing.
The risks include:
AI demand slowing before capacity investments generate returns Hyperscalers flooding the market with cheaper compute Higher interest rates increasing financing costs Customer concentration creating bargaining pressure Customer concentration is especially important. Meta and Microsoft are valuable partners, but they also have the resources to build internally.
That said, neocloud companies still offer advantages. They can deploy specialized AI infrastructure faster, provide flexible capacity, and serve customers that need immediate access to GPUs.
In short, the market reaction looks more like a reset of expectations than the end of the neocloud story.
Key Takeaway Meta’s cloud ambitions are a reminder that the AI infrastructure race will become more competitive. Neocloud companies cannot assume today’s demand environment will continue forever. But investors should not confuse competition with collapse.
Meta’s willingness to spend billions on AI infrastructure supports the core investment thesis: compute demand remains massive. The companies best positioned for the next phase will likely be those with strong contracts, diversified customers, efficient data center operations, and specialized offerings.
For investors, the question is not whether AI compute demand exists. The question is which companies can turn that demand into durable profits as the industry matures.
A woman walks by the Meta Lab in Los Angeles, California, U.S., May 20, 2026. REUTERS/Daniel Cole/File Photo Purchase Licensing Rights, opens new tab
July 1 (Reuters) - Meta said on Wednesday its chief marketing officer Alex Schultz will become the company's first chief data officer, to better manage AI analytics globally.
The Facebook-parent also promoted its vice president of consumer marketing and growth, Denise Moreno, to marketing chief.
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"My focus in this new role will be helping transform how Meta learns and makes decisions in the AI era," Schultz said in a LinkedIn post, opens new tab.
The leadership changes signal at Meta's move to deepen its focus on data-driven decision-making and AI integration across its operations.
Schultz joined the company in 2007 and held responsibilities across various domains like developing Meta's brand strategy and WhatsApp privacy campaigns, according to his LinkedIn page.
Shares of Meta were up 10% after Bloomberg News reported earlier on Wednesday that the company is building a cloud business to sell excess AI computing capacity.
A 17-year veteran at Meta, Moreno began her career managing email marketing and growth experiments, she said, opens new tab in a separate post.
Axios first reported about Meta naming Schultz as its chief data officer and elevating Moreno as CMO.
Meta is projected to spend as much as $145 billion on AI infrastructure this year, a significant portion of Big Tech's more than $700 billion outlay on the technology.
Reporting by Jaspreet Singh in Bengaluru; Editing by Joyjeet Das
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Tesla is once again the ticker every headline is chasing, riding a 10.22% one-week rip on robotaxi buzz and Optimus promises. But here’s what you should actually be watching.
The Tesla (NASDAQ:TSLA | TSLA Price Prediction) story requires you to pay 416x earnings for a company whose full-year 2025 revenue fell 2.93%, whose annual net income dropped 46.79%, and whose deliveries declined 9% for the year. That is a story stock trading at a growth stock’s multiple, and the story keeps slipping to the right. Prediction markets currently assign a 0.5% probability to a California robotaxi launch by June 30, 2026, and a 0.1% probability to an Optimus release in the same window. The composite sentiment score has dropped 17.67 points in the past 7 days. Tesla trades at $420.60, down 6.48% year-to-date, while the promises get pushed into 2026 and beyond.
Apple (NASDAQ:AAPL) is the cash machine hiding in plain sight while everyone stares at Cybercab renderings. Three reasons the smart money is quietly stacking Apple.
1. Valuation Sanity on a Proven Business Apple trades at roughly 38x earnings. Tesla trades at 416x. You are paying nearly ten times less per dollar of earnings for a business generating a 171.4% return on equity and a 32.0% operating margin, compared with Tesla’s 4.6% operating margin and 4.9% ROE. That premium leaves little margin for a robotaxi fleet that regulators have not approved.
2. A Capital Return Machine Tesla Cannot Match Apple’s board just authorized a fresh $100 billion buyback and lifted the dividend 4%. In fiscal 2025, Apple repurchased $90.71 billion of its own stock and returned roughly $32 billion to shareholders in Q1 26 alone. Tesla offers no dividend and no buyback. For an investor who wants cash flowing back to them rather than into humanoid robot production lines, this is not close.
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3. Real Growth Happening Now Apple just posted its 8th consecutive EPS beat: $2.01 versus $1.94 consensus on $111.18 billion in revenue, up 16.6% year over year. iPhone revenue hit $56.99 billion on what Tim Cook called “extraordinary demand for the iPhone 17 lineup“. Services set another all-time record at $30.98 billion. Every geographic segment posted double-digit growth. Greater China alone surged to $25.53 billion in Q1 26 from $18.51 billion the prior year. Meanwhile Tesla’s automotive revenue fell 11% in Q4 25.
Bank of America reiterated its Buy with a $380 price target, calling Apple’s AI reset “underappreciated.” Apple shares are up 41.6% over the past year and 1,225.63% over the past decade. This is a compounder with 2.5 billion active devices and a Services annuity that keeps hitting records.
For investors weighing story-driven promises against demonstrated cash generation, the contrast between the two names is worth tracking.
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Uber (NYSE:UBER | UBER Price Prediction) has become a growth story firing on every cylinder while its stock quietly bleeds. Gross Bookings hit $53.72 billion in Q1 2026, trips grew 20% year over year, and Uber One crossed 50 million members. Yet shares trade at $72.16, down 22.66% over the past year. Can Uber shares double to $150 by July 2027?
Why Uber Shares Are Stuck Despite Record Bookings The disconnect between Uber’s fundamentals and stock price is jarring. Year to date, shares are down 11.69%, with a 3.57% one-week bounce doing little to shift momentum. The one-month gain sits at just 2.5%.
Two factors weigh on the stock. First, GAAP earnings have been distorted by a $1.5B pre-tax equity investment revaluation headwind, dragging Q1 net income down 85.19% year over year.
Second, investors worry that Waymo and other robotaxi operators will erode Uber’s market share. With a beta of 1.12, the stock swings harder than the market, and every AV headline has cut against it. Shares sit 2% off the 52-week high of $101.99. The market refuses to credit Uber’s operating engine.
Wall Street Sees 45% Upside. Our Model Says 72% Wall Street is bullish, but analysts are being too conservative. The consensus target of $104.48 rests on 9 Strong Buys, 36 Buys, 5 Holds, and just 1 Sell, with bullish sentiment at 88%.
Our base case lands at $124.43, implying 72.44% upside with 90% confidence. The bull case reaches $138.01, the bear case delivers $105.24. Analysts anchor on a bruised trailing multiple, underweighting earnings-growth contribution while overweighting recent GAAP noise. When free cash flow ran at $9.76B for full-year 2025 and buybacks totaled $6.523 billion, a $104 target feels conservative.
The Path to $150 Per Share Reaching $150 from $72.16 requires a 107.9% gain. This sits above both our base case and bull case, making it a stretch.
With forward EPS of $5.43, a $150 stock price implies a forward P/E of 28x. Our base case of $124.43 implies 14x, meaning the bold target requires roughly 14 turns of additional multiple expansion.
Management is executing key catalysts. CEO Dara Khosrowshahi said “AV Mobility trips grew more than 10x year-on-year” and framed autonomy as “another $1 trillion total addressable market”.
Q2 2026 guidance calls for Non-GAAP EPS of $0.78 to $0.82, up 31% to 38% year over year. If EPS compounds at that rate, the forward multiple compresses even as price rises, making 28x easier to defend. Primary risk: a broad AI-driven tech multiple contraction as flagged in Vanguard’s 2026 outlook.
Where Uber Trades Today vs Its Earnings Power At $72.16 against forward EPS of $5.43, Uber trades at roughly 13x forward earnings. For a business growing gross bookings 21% and Non-GAAP EPS 44% year over year, that is cheap.
The stock sits near the 52-week low of $67.19 and far below the high of $101.99. Over ten years, UBER is up 73.59%, hardly heroic. The valuation gap is notable for patient long-term holders to monitor.
Is $150 Realistic? My Verdict Reaching $150 requires a 107.9% gain. It is a stretch.
For it to happen, three things must click: EPS growth must stay in the 30%-plus range through 2027, the AV narrative must flip from threat to tailwind (Waymo, Zoox, and Pony partnerships driving value), and buybacks must shrink the share count aggressively. A recession hitting Mobility volumes before AV economics scale would derail it. We’ve outlined the blueprint for how Uber could reach $150 in 2027.
People walk next to Lime rental bikes parked on a pathway at Eel Brook Common in Fulham, London, Britain December 1, 2024. REUTERS/Kevin Coombs/File Photo Purchase Licensing Rights, opens new tab
CompaniesJuly 1 (Reuters) - Uber-backed Lime's (LIME.O), opens new tab shares jumped 8% in its Nasdaq debut on Wednesday after the company raised $167 million in its U.S. IPO, valuing the electric scooter and bike operator at about $1.73 billion.
Its shares opened at $27, compared with the initial offering price of $25. The company and existing stockholders sold about 7 million shares in the offering, generating $174 million in total.
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Lime, founded in 2017, is based in San Francisco, California, and provides short-term rentals of electric bikes and scooters in more than 230 cities worldwide.
Shared e-bikes and scooters have gained popularity among commuters in densely populated cities, where their affordability and convenience have made them popular options for short trips.
Lime's debut comes as new issuers enjoy renewed investor interest after volatility triggered by the war in Iran prompted some companies to take a wait-and-see approach.
The U.S. IPO market has gathered pace in 2026, with a series of high-profile offerings, including SpaceX's record-breaking $75 billion IPO, drawing investors back to new listings.
A LONG, BUMPY ROAD TO MARKETLime operates in an industry grappling with high operating costs and regulatory hurdles, and counts on its partnership with Uber (UBER.N), opens new tab, a major backer, for a significant chunk of its revenue. Uber's ride-hailing app offers Lime's scooters as a transport option.
The company, which has been eyeing a public listing since 2021, is one of the few major standalone micromobility companies to survive an industry shakeout that followed the pandemic.
Its valuation dropped from $2.4 billion in 2019 to about $510 million in 2020, according to media reports at the time, as the pandemic triggered a sharp downturn in the industry.
Former rivals such as Bird filed for bankruptcy protection, while operators including Tier and Dott merged to cut costs and gain scale.
Lime said in its prospectus that it has yet to turn a net profit. For 2025, it posted a net loss of $59.3 million on revenue of $886.7 million.
Reporting by Utkarsh Shetti in Bengaluru; Editing by Tasim Zahid
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Uber Technologies (UBER) is "stuck on struggle street," says Thomas Martin. He says the company is performing at its best, though the rise of robotaxis like Alphabet's (GOOGL) Waymo and Tesla's (TSLA) self-driving vehicle add outlook pressures.
The IPO window is showing more signs of life, with Uber-backed Lime raising $174 million in its public debut, pricing its shares right at the midpoint of the expected range. Lime CEO Wayne Ting says the company is going public to attract new investors, and is thinking about M&A, though "the bar is high.
When headlines hit the wire that Alphabet NASDAQ: GOOGL subsidiary Waymo was removing its autonomous vehicles from the Uber app in Phoenix, the market reacted with predictable, reactionary selling. Shares of Uber Technologies NYSE: UBER slid more than 4% on June 29 after the news was released, pushing the stock down nearly 12% year to date and leaving it near $72.
Uber Technologies Today
UBER
Uber Technologies
$73.04 +0.88 (+1.21%)
As of 12:52 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$67.19▼
$101.99P/E Ratio18.20
Price Target$104.54
The knee-jerk interpretation is that Uber is losing its grip on the autonomous vehicle revolution, sidelined by a vertically integrated giant that has decided to go it alone. Take a step back and look at the underlying mechanics of marketplace dynamics. The withdrawal of a dozen Waymo vehicles in a single metropolitan market is not a structural failure of Uber’s long-term business model.
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Instead, it serves as a highly visible stress test for autonomous demand aggregation. By rapidly rotating the Uber supply chain and leaning on massive core cash flows, Uber is proving that localized fleet shifts cannot fracture a globally entrenched membership moat.
Pumping the Brakes: Waymo’s Phoenix Power PlayTo understand the Waymo exit in Phoenix, you have to look at how autonomous fleet economics scale. Waymo has spent years meticulously mapping and testing in the Phoenix area. Waymo has achieved geographic density, brand penetration, and a critical mass of proprietary hardware in that specific region.
When an autonomous vehicle operator reaches that level of local maturity, it gains the leverage to bypass third-party aggregators and direct consumers to a proprietary application, capturing the full unit economics of the ride. Waymo reallocating those vehicles to a proprietary platform and securing a separate delivery agreement with DoorDash NASDAQ: DASH demonstrates that top-tier developers view third-party networks as supplementary distribution channels in established, highly saturated markets.
Scaling that density nationwide requires staggering capital expenditure. That is exactly why the broader Uber-Waymo alliance remains active in newer autonomous markets like Austin and Atlanta. Autonomous operators still require massive, pre-existing user bases to efficiently penetrate new geographies and sustain fleet utilization rates during early-stage scaling. An empty robotaxi burning miles without a passenger is a massive liability. Uber provides instant demand, solving the utilization equation for these nascent fleets.
Firing on All Cylinders: Uber’s Massive Operating LeverageWhile the market obsesses over future robotaxi market share, current operating metrics provide a rigid valuation floor. Uber Technologies is no longer a cash-burning growth experiment dependent on venture subsidies. Uber has structurally matured, generating $1.9 billion in non-GAAP operating income in the first quarter of 2026, representing a massive 42% year-over-year expansion.
That immense operating leverage is directly funding a $3 billion share repurchase execution. When a management team aggressively buys back stock during localized operational turbulence, it signals deep confidence in the durability of the underlying cash flows.
Those cash flows are largely insulated by the rapid expansion of the subscription ecosystem. Cross-platform Uber One members recently surpassed 50 million, accounting for over 50% of total gross bookings. When you lock tens of millions of consumers into a recurring membership that incentivizes them to use a single application for mobility, food delivery, and freight, you neutralize the revenue impact of isolated supply-chain disruptions. The consumer does not care if the vehicle arriving is driven by a human, guided by Waymo, or powered by another autonomous developer. They simply want the ride fulfilled within the app they already pay a monthly fee to use.
Swapping Parts: Building a Bulletproof Supply ChainThe terminal valuation of a mobility network relies heavily on becoming an indispensable, neutral demand aggregator. If a single autonomous provider achieves a monopoly over the supply side, it can dictate pricing, leading to severe margin compression for the aggregator.
The strategic countermeasure to vendor lock-in is supplier fungibility. If one partner leaves, another must immediately plug into the network. Uber Technologies is already executing this exact playbook. Uber is actively preparing a replacement partner for the Phoenix market to backfill the Waymo vacancy. More importantly, Uber is rapidly advancing a high-volume integration utilizing the Nuro Driver artificial intelligence system on Lucid Group NASDAQ: LCID vehicles.
This multi-year program targets a 35,000-vehicle fleet exclusive to Uber, launching in the San Francisco Bay Area in late 2026 and expanding to Houston by mid-2027. Combined with recent strategic agreements with international developers like WeRide, these moves prove rapid backfilling capabilities. The supply chain is becoming modular, protecting Uber against vertical monopolies and ensuring continuous capacity in contested markets.
The Smart Money Is Riding ShotgunOverall MarketRank™97th Percentile
Analyst RatingModerate Buy
Upside/Downside43.3% Upside
Short Interest LevelHealthy
Dividend StrengthN/A
News Sentiment0.63 Insider TradingN/A
Proj. Earnings Growth49.83%
See Full Analysis
Follow the derivative markets, and a much more optimistic narrative emerges. While retail sentiment soured on the Phoenix headlines, institutional capital appears to be taking the other side of the trade. July 2026 options chain data reveals unusually heavy call volume clustered at the $77 and $85 strike prices. This suggests sophisticated market participants are positioning for a near-term bullish reversal, heavily discounting the localized Waymo turbulence.
Insider alignment further refutes the bearish narrative. Chief Executive Officer Dara Khosrowshahi maintains substantial equity exposure. While recent regulatory filings show multi-million dollar stock liquidations, these trades were executed concurrently with massive retention awards, including the receipt of 293,637 new stock options.
These scheduled sales align with standard Rule 10b5-1 trading plans rather than opportunistic insider fleeing. When leadership continues to hold and vest massive blocks of equity alongside aggressive corporate buybacks, it telegraphs a strong conviction in the broader multi-partner autonomous marketplace.
The Road Ahead: Dominating the Next Mobility CycleThe transition from human-driven ride-hailing to an autonomous mobility network will inevitably face friction. Individual partnerships will form, evolve, and occasionally dissolve as hardware developers test pricing power. By actively diversifying its autonomous fleet and leveraging its 50-million-strong membership base, Uber is effectively turning competing robotaxi fleets into interchangeable commodities.
The true metric to watch over the coming quarters is not whether a single partner stays or leaves a specific city, but whether Uber can seamlessly route massive consumer demand to the provider with the most efficient capacity. Investors observing the current pullback might consider how a diversified, multi-partner supply chain ultimately secures long-term marketplace dominance.
Should You Invest $1,000 in Uber Technologies Right Now?Before you consider Uber Technologies, you'll want to hear this.
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SummaryAlphabet is rated a 'Hold' due to the extended valuation, despite robust business fundamentals and AI verticalization.GOOG's revenue is projected to grow 17%–20% annually through 2026, with stable operating margins in the low 30% range.The current valuation implies high single-digit returns, while much of the near-term upside appears to be priced in.Selling put options on GOOG can yield ~11% in annualized income, offering a win-win for income-focused investors seeking lower entry points.Looking for option income ideas that focus on capital preservation? I offer this and much more at my exclusive investing ideas service, Option Income Builder. Learn More » mustafaU/E+ via Getty Images
A few months ago, I wrote an article titled "The Three Key Reasons We're Downgrading Alphabet."
In it, I made the case that the shares of Alphabet (GOOG, GOOGL) no longer looked like
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Alphabet Inc. (NASDAQ:GOOGL) is trading higher on Wednesday. It has gained about 5% in just three days.
The uptrend may continue, as the shares are testing resistance and may be on the verge of a breakout. This is why Alphabet is the Stock of the Day.
Resistance is a price level at which a large number of shares are for sale. If a stock is trending higher, it’s because there aren’t enough sell orders to fill all of the buy orders.
Those who wish to acquire shares are forced to outbid each other and pay premiums if they want to get sellers interested. This forces the shares into an uptrend.
This changes at resistance — and because there are enough sell orders to fill the buy orders, the rally will end or at least pause.
There tends to be resistance at price levels that had previously been support. This can be seen on Alphabet’s chart.
In April, the $374 level was support. People who bought shares at this level were glad they did when the price went higher. But when this support broke in early June, they changed their minds. They decided that selling was actually a mistake.
Some also decided to sell out of their positions if they could eventually do so at breakeven. When Alphabet rallied back to $374, they placed sell orders. These created resistance at the former support level.
The same dynamic is currently taking place at the $358 level. As you can see, this level was support in early June. Now it has become resistance because of buyers’ remorse. People who bought at $358 are now selling, and this has created resistance.
If a stock can clear this resistance and stay above it, traders call this a breakout. This can be a bullish dynamic because it shows the sellers who created the resistance are gone. They have either canceled or finished their orders.
Buyers may once again be forced to outbid each other to attract sellers. This can keep Alphabet’s uptrend intact.
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A Google Cloud logo is pictured at a trade fair in Hannover Messe, in Hanover, Germany, April 22, 2024. REUTERS/Annegret Hilse//File Photo Purchase Licensing Rights, opens new tab
JOHANNESBURG, July 1 (Reuters) - Google (GOOGL.O), opens new tab has exceeded a five-year target to invest $1 billion in Africa, it said on Wednesday, as it made public initiatives on infrastructure and development of AI to accelerate the continent's digital growth.
They follow on from Google's launch of a cloud for the Johannesburg region in 2025.
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Here are the details of the new initiatives that Google, owned by Alphabet, announced at the first Africa Cloud Summit in Johannesburg.
Google will establish a connectivity hub in South Africa's Eastern Cape, the first of four planned connectivity hubs on the continent.
The facility will link Africa to Australia via the Umoja subsea cable and to India through a new route, strengthening internet resilience and capacity.
Africa's first applied AI lab in Ghana will pair local startups with Google researchers and provide early access to its AI models.
A more than $1 million programme in partnership with UK actor Idris Elba's Akuna Group will train underrepresented creators in AI-driven storytelling.
Google's Economic and Community Development programme and WeThinkCode have committed to build a 3 million rand ($183,468) digital innovation centre in Soweto, Johannesburg.
Google also said its startup accelerator programme will back 15 South African firms as part of Google's pledge to back 50 African ventures between 2024 and 2028.
"The AI opportunity for Africa is significant, and Google is committed to doing our part working with Africans to help Africa realise it," James Manyika, Google's senior vice president for research and technology, told reporters.
($1 = 16.3516 rand)
Reporting by Nqobile Dludla; editing by Barbara Lewis
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Nqobile is a Johannesburg-based reporter covering the South African retail, telecom and tech sectors. She has been a journalists for about 10 years. She joined Reuters in 2015 and has covered a variety of beats ranging from pharma, health to property and banking.
Investors interested in Retail-Wholesale stocks should always be looking to find the best-performing companies in the group. Is Amazon (AMZN - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Retail-Wholesale sector should help us answer this question.
Amazon is one of 187 companies in the Retail-Wholesale group. The Retail-Wholesale group currently sits at #12 within the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Amazon is currently sporting a Zacks Rank of #2 (Buy).
Over the past three months, the Zacks Consensus Estimate for AMZN's full-year earnings has moved 0.1% higher. This signals that analyst sentiment is improving and the stock's earnings outlook is more positive.
Our latest available data shows that AMZN has returned about 3.3% since the start of the calendar year. Meanwhile, the Retail-Wholesale sector has returned an average of -1.5% on a year-to-date basis. As we can see, Amazon is performing better than its sector in the calendar year.
Another stock in the Retail-Wholesale sector, Brinker International (EAT - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 17.1%.
The consensus estimate for Brinker International's current year EPS has increased 0.5% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Amazon belongs to the Internet - Commerce industry, which includes 35 individual stocks and currently sits at #182 in the Zacks Industry Rank. On average, this group has lost an average of 4.8% so far this year, meaning that AMZN is performing better in terms of year-to-date returns.
On the other hand, Brinker International belongs to the Retail - Restaurants industry. This 36-stock industry is currently ranked #191. The industry has moved +0.8% year to date.
Investors interested in the Retail-Wholesale sector may want to keep a close eye on Amazon and Brinker International as they attempt to continue their solid performance.
Meta Platforms is developing plans to build a cloud infrastructure business that would sell access to AI computing power and models. It would take on industry leaders like Amazon Web Services, Microsoft Azure and Google Cloud.
Greyston Holt, Alan Ritchson, Jasper Jones, Maria Sten
Shane Mahood/Prime
It seems clear that Amazon wants to make seasons of Reacher for as long as possible, with infinite source material, high viewership, and high-profile action star Alan Ritchson. But its effort to fill seasonal gaps with a spinoff is taking a strange turn.
Reacher season 4’s release date is Wednesday, August 12, just over a month from now. Its spinoff, Neagley, focused on Maria Sten’s recurring Reacher ally, had not previously received a release date, even though it seemed like it should air before Reacher season 4. Now, Amazon has announced a date, and it’s a strange choice.
Reacher will do a triple-episode premiere for season 4 on August 12, and then air weekly through September 16. Pretty standard. But on September 16, right after the Reacher finale airs, Amazon will put all eight episodes of Neagley online.
We have seen shows act as lead-ins for new series before, something with big views trying to boost something new. But while Neagley seems like it could use that Reacher boost, airing all eight episodes as a binge drop right at that moment, likely able to be finished by the weekend, is a strange move that seems like it could make the show forgotten about almost immediately unless it makes an enormous impact.
Maria Sten, Greyston Holt
Sabrina Lantos/Prime
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I have often compared this Reacher-Neagley idea to the relationship between The Walking Dead and Fear the Walking Dead, the latter meant to be an interim series between seasons of the flagship. But Fear did not get TWD as a lead-in, and instead premiered five months later, airing weekly after that. This move would seem to me to suggest a lack of confidence in Neagley, perhaps believing that it would do poorly if it aired 5-6 months from now in between Reacher seasons, standing on its own.
As a fan of Reacher, the idea of a Neagley spinoff has never made much sense to me. The show has tried to shoehorn her into stories she was never a part of in the original book, and I simply don’t think she’s all that compelling of a character, no offense to Sten. Her show sounds like a copy of a Reacher plot we’ve essentially already done (a friend from her past is killed and she tries to uncover the mystery and get justice), except with Neagley instead of Reacher, and I just don’t think the two are remotely comparable characters.
We’ll see if my skepticism is unwarranted and Neagley performs better than I predict. But a binge drop the night of the Reacher finale still seems like it could do more harm than good, especially if the show compares unfavorably to the season that just aired.
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Pick up my sci-fi novels the Herokiller series and The Earthborn Trilogy.
by Lisa Stiffler on Jul 1, 2026 at 9:00 amJuly 1, 2026 at 7:53 am
Wind Wall, a wind farm in California’s Tehachapi Mountains, produces renewable energy for Amazon Web Services. (Amazon Photo) Amazon’s carbon footprint jumped 16% last year after several years of little or no increase. The company emitted nearly 80.9 million metric tons of carbon dioxide equivalent in 2025. By comparison, that’s slightly higher than the nation of New Zealand’s emissions.
Amazon disclosed its climate-related data in its most comprehensive sustainability report to date, which includes a breakdown of its carbon sources, water use and other environmental impacts.
Not surprisingly, energy use showed the biggest rate of increase in the 2025 carbon tally as Amazon and other tech companies are working to rapidly expand their data center capacity to meet AI computing demand.
For the first time since 2019, the company also reported an uptick in its “carbon intensity” — a measure of how much carbon was emitted relative to each dollar of revenue. Amazon has promoted this metric as a sign that it can decouple its growth from its climate impacts.
*Million of metric tons carbon dioxide equivalent. † Grams of carbon dioxide equivalent per dollar of revenue. ‡ Carbon emissions for 2025 were calculated using a market-based method, including the application of Environmental Attribute Credits (EACs). (2025 Amazon Sustainability Report) Despite emissions moving in the wrong direction and ongoing data center-driven challenges, the Seattle-area company remains committed to its pledge of net-zero carbon emissions by 2040.
When it comes to that goal, “I remain confident and optimistic in the overarching vision and the long-term progress we continue to make toward it,” said Kara Hurst, Amazon’s chief sustainability officer, in the foreword to the company’s annual report.
The report highlights areas of success that include:
Data center efficiency: Amazon’s data centers are 9% more efficient than the public cloud average and 30% more efficient than on-premises data centers at directing energy toward computing rather than cooling, lighting or overhead. Data center water use: Amazon is seven times more efficient in its water use than the industry average thanks to its use of air cooling at most sites, most of the year. 100% clean energy overall: For the third year running, Amazon matched its company-wide electricity use with an equivalent volume of purchased clean energy, although it technically still draws on fossil fuels for some of its energy. Electric vehicle fleet: It has the largest corporate EV fleet in North America, with more than 52,700 delivery vans worldwide. It’s halfway to meeting its 2030 goal of 100,000 EVs. The company also reported improvements in reducing packaging and plastic use in delivered items; increasing use of low-carbon building materials in data center construction; and progress toward becoming water positive at its data centers, meaning it aims to replenish more water to communities than it uses.
The Amazon-backed Climate Pledge — an effort to get other organizations to commit to net-zero carbon emissions by 2040 — has grown to 656 signatories after adding 107 companies this year. It marks a notable increase at a time when companies are growing quieter about climate commitments, with some stepping back from earlier goals.
But the surge in data center investment shows little sign of slowing, which will keep complicating Amazon’s path to lower emissions. CEO Andy Jassy said Amazon expects to spend a record $200 billion in capital expenditures this year, including “AI, chips, robotics, and low-Earth orbit satellites.”
Not all reactions to that buildout have been positive — even within the company. Members of Amazon Employees for Climate Justice this month testified before the Seattle City Council in favor of data center requirements for renewable energy and labor protections, though Amazon doesn’t operate any data centers within city limits.
In the report, Amazon CSO Hurst acknowledged that AI-fueled advances could catalyze sustainability solutions or slow progress toward climate goals.
“But what alternative do we have,” she said, “but to continue to invest, learn, and move forward to try to solve one of the world’s most challenging issues?”
Shares of Meta Platforms (NASDAQ:META | META Price Prediction) are up 10% to $619 in morning trading, marking one of the sharpest single-session moves for the stock this year. The catalyst is a Bloomberg report that the company is building a cloud infrastructure business to sell its excess AI computing capacity to outside customers. If confirmed, the shift would put Meta Platforms into direct competition with the biggest names in cloud.
The jump reframes a stock that had been under sustained pressure. Meta Platforms stock is still down 7.45% year to date, as investors questioned the payoff on the company’s aggressive AI capital spending. Today’s rally begins to close that gap.
The report recasts a heavy capex line as a potential new revenue stream rather than a pure cost center. That single narrative shift is doing most of the work in today’s move.
Bloomberg Report Frames AI Capex as Potential Revenue Stream Per Bloomberg, Meta Platforms is weighing two options: hosting AI models for developers to access (compared to Amazon‘s (NASDAQ:AMZN) AWS Bedrock), and renting out raw compute capacity as a “neocloud,” an approach the report explicitly likened to CoreWeave (NASDAQ:CRWV). If it proceeds, the business would compete directly with Amazon Web Services, Microsoft (NASDAQ:MSFT) Azure, and Alphabet‘s (NASDAQ:GOOGL) Google Cloud. Those three remain the entrenched incumbents in the space.
Important caveat: this remains an unconfirmed report. Meta Platforms has not verified the plan, and Reuters said it could not independently verify the details. Readers should treat the story as reported, not confirmed.
The report echoes comments Meta Platforms CEO Mark Zuckerberg made at the company’s May shareholder meeting, where he called the idea “definitely on the table”. He noted that companies ask “almost every week” to buy Meta Platforms’ spare compute or model access at a premium, framing external sales as a hedge in case the company overbuilt.
The financial backdrop makes the pivot plausible. Meta Platforms raised its 2026 capex guide to $125 billion to $145 billion to support data center capacity, and it has already stood up Meta Superintelligence Labs. That is a scale of infrastructure that could support external tenants.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.
CoreWeave Slides on Competitive Read-Through The clearest peer reaction is in the neocloud space. CoreWeave stock is down 12% today, a likely read-through to the risk that a well-capitalized hyperscaler entering the raw-compute-rental market compresses pricing for pure-play providers. Framed as probable rather than confirmed causation, the direction of travel is clear.
The stakes for CoreWeave are meaningful. Meta Platforms is already CoreWeave’s largest customer via a $21 billion commitment signed earlier this year, part of a total book that helped push CoreWeave’s backlog to $99.4 billion. A Meta Platforms pivot from buyer to seller could reshape that customer relationship over time.
The bigger reframe is industry-wide. Big Tech is expected to spend more than $700 billion on AI infrastructure this year, up from around $400 billion in 2025. Monetizing even a slice of that capacity externally would diversify a Meta Platforms revenue base still heavily reliant on advertising.
What to Watch The community read is split. Some investors see the plan as validating Meta Platforms’ aggressive AI spending, while skeptics wonder if it signals hedging against internal AI demand falling short of the buildout. Reddit sentiment on WallStreetBets swung from a very bearish score of 12 on June 21 to a very bullish 90 on June 24 as the story broke.
The prediction markets echo the shift. Polymarket assigns a 0.84 probability that Meta Platforms stock hits $620 in July and puts Meta Platforms ahead of OpenAI on year-end valuation at a 0.62 probability.
The next catalysts are official confirmation or denial from Meta Platforms and any commentary from AWS, Azure, and Google Cloud on pricing or capacity. Investors can watch for whether today’s gains hold into the close and whether CoreWeave stock stabilizes. The takeaway: this is a credible reframe of a maligned capex story, but it hinges on a report the company hasn’t confirmed, so investors should consider keeping their META position sizes modest until the plan is verified.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Microsoft didn't make the cut. Grab the names FREE today.
MSFT Shareholder Alert: Investors With Losses May Seek to Lead the Class Action in Microsoft Corporation Securities Lawsuit - Contact Levi & Korsinsky PR Newswire
NEW YORK, July 1, 2026
Executive Accountability: Jared Spataro's "70% of the Fortune 500" Copilot Claims Now at the Center of Microsoft Securities Action
, /PRNewswire/ -- Levi & Korsinsky, LLP notifies investors that Jared Spataro, Microsoft Corporation's (NASDAQ: MSFT) Chief Marketing Officer for AI at Work, is named as a defendant in a securities class action covering purchases between May 1, 2025 and January 28, 2026. Find out if you qualify to recover losses from the MSFT securities action. You may also contact Joseph E. Levi, Esq. at [email protected] or (212) 363-7500.
Microsoft shares traded above $550 per share during the Class Period as the Company promoted Copilot's alleged widespread enterprise adoption. The lead plaintiff deadline is August 11, 2026.
Spataro's Role as Microsoft's AI Marketing Chief
As AI CMO, Spataro served as Microsoft's primary external spokesperson for Copilot's commercial traction and enterprise adoption story. The complaint identifies Spataro as directly involved in crafting and disseminating public statements about Copilot's market performance to analysts and institutional investors at major industry conferences.
At the September 10, 2025 Goldman Sachs Communacopia & Technology Conference, Spataro allegedly made specific, quantifiable claims about Copilot adoption that the lawsuit contends were materially misleading, including:
Claiming "more than 90% of the Fortune 500 now use Microsoft 365 Copilot" while the product allegedly suffered from significant brand positioning and interoperability failuresRepresenting that the most recent quarter was Copilot's "best quarter ever both in terms of seat adds" and customer count Asserting Copilot was the "fastest-growing M365 portfolio product" Microsoft had ever launchedStating Microsoft could "improve efficiency by 20% to 30%" through Copilot, characterizing such gains as "just real nuts and bolts"What Spataro Allegedly Failed to Disclose
The action contends that while Spataro promoted Copilot as achieving record adoption, the product was experiencing serious internal problems including data siloing, computational capacity constraints, user experience deficiencies, and organizational challenges that undermined the adoption narrative he presented to investors.
The complaint charges that Spataro, as the executive responsible for Copilot's market positioning, was privy to confidential information about these product shortcomings and either knew or recklessly disregarded that his public statements painted a materially incomplete picture of Copilot's actual performance.
Section 20(a) Context for Spataro
Under Section 20(a) of the Securities Exchange Act of 1934, individuals who exercise control over a company's public statements may bear personal liability when those statements are alleged to contain material misrepresentations. The complaint asserts Spataro was directly involved in drafting, reviewing, and disseminating the challenged statements and had the ability to prevent their issuance or cause them to be corrected.
"Individual officers who sign SEC certifications bear personal responsibility for the accuracy of corporate disclosures. When executives make specific quantitative claims about product adoption at major investor conferences, those statements carry particular weight in the market." -- Joseph E. Levi, Esq.
Speak with an attorney about Spataro's alleged role in Microsoft investor losses or call (212) 363-7500.
LEAD PLAINTIFF DEADLINE: August 11, 2026
Levi & Korsinsky, LLP, Top 50 securities litigation firm (ISS, seven consecutive years). Over 70 professionals. Hundreds of millions recovered for investors.
Frequently Asked Questions About the MSFT Lawsuit
Q: Who are the defendants named in the MSFT lawsuit? A: The complaint names Microsoft Corporation and individual defendants including senior executives who made public statements about Copilot's adoption and AI performance, signed SEC filings, or certified financial disclosures under Sarbanes-Oxley.
Q: What specific misstatements does the MSFT lawsuit allege? A: The complaint alleges Microsoft made materially false or misleading statements regarding the success, adoption, and performance of its Copilot AI products and Azure cloud platform while concealing significant technical and organizational problems. When the true state was revealed, the stock price declined.
Q: What do MSFT investors need to do right now? A: Gather brokerage records including purchase dates, share quantities, and prices paid. Contact Levi & Korsinsky for a free, no-obligation evaluation at [email protected] or (212) 363-7500. No immediate action is required to remain eligible as a class member.
Q: What does it cost me to participate? A: Nothing. Securities class actions are handled on a pure contingency basis. No upfront fees, no retainer, no out-of-pocket costs.
Q: What if I already sold my MSFT shares -- can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold them. Investors who bought during the class period and sold at a loss may still participate.
Q: How long will the lawsuit take to resolve? A: Securities class actions typically take two to four years from initial filing to resolution.
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Microsoft is reportedly planning yet another round of layoffs that will slash thousands of roles next week in an effort to cut costs, as concerns about out-of-control AI spending mount.
Less than 2.5% of the company’s 220,000-person workforce – or fewer than 5,500 workers – will be axed from the sales and consulting divisions, as well as Xbox’s gaming unit, according to Business Insider.
The Redmond, Wash.-based software giant plans to announce the layoff round next week, just after the start of its new fiscal year on Wednesday, though the timing could change, sources told the outlet. Some impacted employees will be offered new roles within the company immediately.
Microsoft CEO Satya Nadella speaks at CES 2024, a massive tech conference, in Las Vegas on Jan. 9, 2024. Getty Images Microsoft declined to comment.
It would mark its third major round of layoffs in just over a year, after slashing 6,000 jobs last May and another 9,000 – or 4% of its workforce – last July.
Amid the rapid rise of AI, the company has been facing both concerns that it’s spending too much on the new tech – with commitments of $190 billion on new infrastructure over the coming years – and fears that bots could render traditional software tools obsolete.
Shares in Microsoft tanked 19% in June for the stock’s worst month since the dot-com crash of the early 2000s.
News of additional layoffs comes as little surprise after Microsoft earlier this year launched a voluntary retirement buyout round for US employees whose years of employment and age are 70 or higher when added together.
About a third of the company’s 9,000 eligible workers took the offer, allowing Microsoft to cut fewer roles in this year’s expected layoff round, a source told Business Insider.
Layoffs have also been anticipated in Microsoft’s gaming unit, after new Xbox CEO Asha Sharma called for a “resetting” of the company,” saying it was “not in a healthy spot” amid declining revenue.
Xbox recently hiked prices for its hardware ofr the third time since late 2025. CFOTO/Future Publishing via Getty Images Xbox has spent the past two years closing studios, canceling new game releases and raising prices on its consoles as skyrocketing data center demand for chips sends component prices higher.
Last week, Apple blamed chip shortages as it hiked prices for its computers, tablets and home devices by as much as $500.
Xbox quickly followed suit with its third price hike on hardware since late 2025, raising prices by $150 across its suite of gaming consoles.
So far this year, nearly a third of all job cuts have hit the tech sector – and AI came in as the leading reason for announced layoffs in June for the fourth month in a row, according to a Challenger, Gray & Christmas report released Wednesday.
Microsoft and Apple have blamed recent price hikes on higher component costs amid chip shortages. REUTERS “The pace of layoffs cooled considerably in June, similar to plans last June, and as is typical for summer months,” Andy Challenger, the firm’s workplace expert and chief revenue officer, said in a statement.
“That said, the cuts we are seeing remain concentrated in technology, and artificial intelligence continues to reshape how companies think about headcount.”
Since 2023, when AI first emerged as a driving force in layoffs, the new tech has been cited in 173,568 job cut announcements, according to Challenger.
Microsoft MSFT currently trades at a forward 12-month price-to-earnings ratio of 21.52X, above the Zacks Computer - Software industry's 18.83X, underscoring a valuation premium that has investors debating the stock's near-term direction. The company carries a Value Score of C, suggesting shares are not particularly cheap relative to peers in the sector at current levels.
GERMANY - 2026/06/10: In this photo illustration, the logo of productivity software Microsoft 365 is displayed on a smartphone in front of abstract background on computer screen. (Photo Illustration by Timon Schneider/SOPA Images/LightRocket via Getty Images)
SOPA Images/LightRocket via Getty Images
This article was written by Doug Nathman, with research by his team at Trefis.
A new business within Microsoft (MSFT) has quietly grown to massive scale. The company's AI segment has crossed a $37 billion annual run rate, expanding at an astonishing 123%. This new growth engine already represents a meaningful portion of Microsoft Cloud, which itself exceeded $54 billion in quarterly revenue. This is not a future promise; it is a current reality.
This rapid growth is why the upside case is centered on revenue. The Intelligent Cloud segment, which houses these AI services, grew 30% to become a $34.7 billion quarterly business. Continued compounding from this base is the main driver of the stock's potential upside.
That is the story. The question is whether it is strong enough to drive meaningful upside from here, or whether today’s price already reflects most of that optimism. Yes, but with caveats. A conservative 3-year scenario points to roughly 49%. Revenue compounding does the heavy lifting, while the multiple barely changes.
Here is the operational picture behind the math:
MSFT Key Metrics
Trefis
How Compounding Builds The UpsideRevenue compounds at 15.2% annually, lifting the top line from $318.3B to $486.5B over three years. That is a step down from the LTM 17.9% pace, since today's acceleration is unlikely to extrapolate cleanly over a full three-year period.
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Margins ease from 39.3% to 38.3% as today's LTM level gives back slightly toward the longer-run average. Together, that lifts earnings from $125.2B to roughly $186.1B, a 49% increase.
The model assumes a constant price-to-earnings (P/E) multiple of 21.9x, implying that earnings growth alone drives the projected valuation gain. Applying that multiple to higher earnings puts the stock near $547.83, with a market cap of $4.1T versus $2.7T today. That is roughly 49% above where the stock trades now.
Has revenue compounding been the lever behind MSFT's recent move? See the lever breakdown.
What Could Accelerate The Top LineThe next leg of growth could come from a fundamental shift in the business model, as management explained that per-user businesses will become both per-user and usage-based. With Microsoft 365 Copilot seat additions already up 250% year-over-year, layering consumption on top of this adoption curve creates a new, unmodeled revenue opportunity.
What Could Slow It DownThe main concern raised on the call is the sheer scale of investment needed to support this growth. Management expects to invest roughly $190 billion in capital expenditures in calendar year 2026 alone. This spending pace creates what one analyst described as a disconnect, making investors nervous about the timing of the return.
Is The Compounding Real?For this case to play out, revenue needs to keep compounding near 15.2%, a step down from today's 17.9% but still clearly positive. The multiple is not being asked to do anything dramatic, which makes the case more defensible. The projected margin also sits at or near the 3-year peak, so any move back toward the longer-run average would make the rest of the math more difficult.
While the shift to usage-based pricing provides a clear revenue catalyst, the planned $190 billion capital investment creates meaningful near-term risk.
Should You Invest In Microsoft?A careful 3-year case on a single company is still a concentrated bet, as historical volatility across past market crises shows. Investors who build analyses like this around individual positions often want the same framework applied across a diversified book, partly for discipline and partly because even the cleanest single-stock thesis can break for reasons the math does not capture.
The Trefis High Quality (HQ) Portfolio combines analytical rigor with a forward-looking view across 30 stocks, using a consistent selection framework and a sizing and re-balancing discipline designed to deliver upside without the single-name risk described here. By selecting 30 high-conviction stocks, the HQ strategy has historically outpaced a benchmark that combines the three major indices - the S&P 500, S&P Mid-cap, and Russell 2000.
The agreement aims to increase the adoption of AI-powered tools across the business while strengthening Haleon’s digital infrastructure with advanced security, identity, and agentic AI capabilities.
AI Collaboration Targets Productivity And Business TransformationThe partnership builds on Haleon’s existing use of Microsoft 365 Copilot and helps employees automate repetitive tasks, improve collaboration, and dedicate more time to higher-value work.
The companies also plan to jointly develop AI applications across several key business functions, including consumer insights, innovation, supply chain management, and commercial execution.
Haleon expects these initiatives to support faster scientific research, speed up clinical content development, improve marketing personalization, and strengthen forecasting and business decision-making.
Focus On Consumer Insights And Operational EfficiencyAccording to the company, expanding its AI capabilities will provide deeper insights into changing consumer preferences while helping accelerate product innovation and streamline operations from manufacturing through commercial activities.
Haleon said it intends to use the technology investments to respond more quickly to growing consumer demand, deliver more personalized health products, and improve product availability across global markets.
The company added that these efforts support its broader objective of reaching one billion more consumers by 2030 while delivering industry-leading shareholder returns.
Azure, Copilot And Agentic AI Form Core Of StrategyAs part of the agreement, Haleon will continue using Microsoft Azure as its primary cloud platform and Microsoft Copilot as a foundation for its enterprise AI initiatives.
The company said Azure’s scalable infrastructure, analytics capabilities, and enterprise-grade security features will help protect data, systems, and AI-powered workflows as it expands AI deployment responsibly and securely.
Haleon also plans to advance its use of next-generation agentic AI, enabling intelligent digital agents that can assist teams in identifying opportunities sooner, responding more quickly to changing conditions, and supporting better outcomes for consumers, customers, and healthcare professionals.
The company said the collaboration aligns with its ambition to build an AI-powered, decision-intelligent enterprise where data and insights enable faster, smarter, and more consumer-focused decision-making.
HLN Price Action: Haleon shares were up 0.48% at $9.37 at the time of publication on Wednesday, according to Benzinga Pro data.
Photo by Poetra.RH via Shutterstock
Market News and Data brought to you by Benzinga APIs
CHANDLER, Ariz.--(BUSINESS WIRE)--Insight Enterprises (NASDAQ: NSIT) today announced it has signed an agreement to formalize its role as a launch partner for Microsoft 365 E7, Microsoft's Frontier Suite that combines advanced productivity and security with artificial intelligence (AI) built for work and capabilities to manage and secure AI agents. As one of the first enterprises to deploy Microsoft's Frontier Suite across its own 14,000+ employee global enterprise, Insight will be client zero f.
New York, New York--(Newsfile Corp. - July 1, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Microsoft Corporation (NASDAQ: MSFT) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Microsoft securities between May 1, 2025 and January 28, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/MSFT.
Microsoft Case Details
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements because they failed to disclose that:
Microsoft's Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; Microsoft's flagship proprietary AI model ranked well below competitors on a number of benchmark tests; Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit ("GPU") and central processing unit ("CPU") capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related research and development ("R&D"); and as a result of the above, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft's Copilot offerings had lost market share to rival products, a trend that was increasing.What's Next for Microsoft Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/MSFT, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Microsoft you have until August 11, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Microsoft Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Microsoft Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
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Apple (AAPL +1.78%) continues to maintain its status as one of the three most valuable companies in the world (behind Nvidia and trading No.2 and No. 3 positions regularly with Alphabet). Investors are paying less attention to Apple in the age of AI, but it has still been a strong stock pick over the past year, although it hasn't escaped the recent tech sell-off. However, I'm not convinced that all of this rally is driven by business gains, and I think there are far better values out there.
One of the biggest (if not the biggest) bargains I can think of right now is the fourth-largest company in the world: Microsoft (MSFT +3.47%). If you're deciding between the two, I think Microsoft makes for a far better value, and I've got a few metrics to back that up.
Image source: Getty Images.
Microsoft's stock is cheap compared to Apple and its own average Valuing a stock can be done in numerous ways. Given two mature businesses that generate mountains of profits, the price-to-earnings (P/E) ratio is a commonly used valuation metric. From this standpoint, Microsoft is trading at a low valuation compared to historical levels and is about 50% cheaper than Apple.
Data by YCharts.
That's a huge delta between the two, but that's not the only way these companies are valued. Investors also like to account for growth in their valuations, so they'll also utilize the forward P/E ratio to get an idea of where the stock is heading. Both Apple and Microsoft operate on non-traditional fiscal years; Microsoft's wraps up at the end of June, and Apple's is complete in September. Because we're nearing the end of both fiscal years, I'll use fiscal year 2027 projections for each of them.
Data by YCharts.
The same gap exists in the forward earnings valuation as in the trailing earnings valuation, suggesting that their future growth rates are likely to be similar. So, if that's the case, then why would you want to own Apple stock versus Microsoft's? Well, some good reasons would be fear of overspending on AI on Microsoft's part, AI replacing some of Microsoft's staple software applications, or Microsoft's overreliance on its partnership with OpenAI. Those are some bearish arguments against Microsoft's stock, but I think they carry roughly the same weight as those against Apple. Apple hasn't spent much on AI, hasn't released a major iPhone revision for years, and hasn't launched a major new product recently, either.
Today's Change
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There are valid arguments against both companies, but I still think each is holding its own in the current market. As a result, Microsoft looks like the better buy because its stock is far cheaper and could easily enter a multiple expansion phase, leading to major gains as the market values it higher. That could drive large returns in a short time frame, making it a time-sensitive buy as well.
Keithen Drury has positions in Microsoft. The Motley Fool has positions in and recommends Apple and Microsoft. The Motley Fool has a disclosure policy.
HomeInvestingDeep DiveDeep DiveValue stocks tend to outperform growth stocks during periods of high inflation. These companies in the Russell 1000 Value Index have high revenue growth estimates for the next two years.July 1, 2026, 12:10 p.m. ET
Let us begin with a midyear summary of index results that might surprise you in light of the triple-digit gains for so many growth stocks in the S&P 500.
Here is how several broad large-cap indexes performed during the first half of 2026, with dividends reinvested:
Our Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) call is straightforward: the 24/7 Wall St. price target for AMD is $586, modestly above today’s price of $539.49. That implies roughly 8.6% upside over the next 12 months, and our recommendation is buy.
Confidence is high at 90%, supported by 80% bullish analyst consensus, an accelerating Data Center business, and the MI450 ramp landing in the second half of 2026.
24/7 Wall St. Price Target Summary Metric Value Current Price $539.49 24/7 Wall St. Price Target $586 Upside 8.6% Recommendation BUY Confidence Level 90% A Vertical Move Since Q1 Earnings AMD has been one of the year’s defining AI trades. Shares are up 151.91% year to date and 275.14% over the past year, with a 51.86% surge since the May 5 earnings report. The stock sits roughly 11% below its 52-week high of $562.99, well off the $133.50 52-week low.
Q1 FY2026 was the catalyst. Revenue hit $10.25 billion, up 37.85% year over year, with non-GAAP EPS of $1.37 beating estimates by 5.88%. Data Center revenue alone reached $5.78 billion, up 57%. Management then guided Q2 to roughly $11.2 billion, implying about 46% growth.
Why Bulls See a Breakout Past $650 The bull case is anchored in TAM expansion. Lisa Su told investors the server CPU market is now expected to grow at “greater than 35% annually, reaching over $120 billion by 2030”, driven by agentic AI workloads that need both CPUs and accelerators.
Customer engagement on MI450 and Helios is “exceeding our initial expectations”, with the Meta deal alone covering up to 6 gigawatts of Instinct GPU deployment.
Cantor Fitzgerald just lifted its target to $700 and UBS moved to $670 on June 29, both citing server CPU share gains. If MI450 ramps cleanly and Data Center AI hits Su’s “tens of billions of dollars” 2027 mark, a bull case to $610.80 within 12 months looks conservative, with $700 reachable on a strong execution quarter.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AMD didn't make the cut. Grab the names FREE today.
The Risks Worth Watching The bear case starts with valuation. AMD trades at a P/E of 203x trailing and an implied 118x on forward EPS, leaving little room for execution slippage.
China remains a wildcard after FY2025 absorbed $440M in net MI308 inventory charges from U.S. export controls. NVIDIA (NASDAQ:NVDA) still dominates AI training, and our model’s bear case pegs downside at $439.24, an 18.58% drawdown.
Insider activity is also worth noting, with 93 recent transactions skewed net-selling. That said, bulls would counter that much of this reflects scheduled 10b5-1 plans after a 275% one-year rally, and free cash flow more than tripled to $2.57 billion in Q1, which softens the valuation critique.
AMD Price Prediction 2026-2030 The 24/7 Wall St. price target for AMD is $586, our recommendation is buy, and confidence sits at 90%. The factor tipping the scale is Data Center momentum: 57% segment growth with management guiding server CPU revenue up more than 70% in Q2.
The constructive case strengthens if MI450 production ramps on schedule in H2. The setup weakens if forward EPS estimates start drifting lower or China restrictions widen further.
Year 24/7 Wall St. Price Target 2026 $586 2027 $640 2028 $675 2029 $700 2030 $730 These projections assume AMD continues executing on its Instinct roadmap and that Data Center AI revenue scales toward the “tens of billions of dollars” Lisa Su outlined for 2027. Significant upside would come from MI500 traction; meaningful downside would come from a broader AI capex digestion cycle.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and AMD didn't make the cut. Grab the names FREE today.
The Pentagon just earmarked over $74 billion for drone dominance and counter drone technologies in the FY2027 budget request, and that is only one slice of the AI arms race AMD and NVIDIA are fighting over. While Wall Street obsesses over who wins the GPU throne, the real money in the next AI phase is flowing to the picks, shovels, wires, weapons, and power banks nobody is watching. Here are five of them.
1. Schrodinger (SDGR): The Surprise Pick Nobody Calls an AI Stock Schrodinger (NASDAQ:SDGR) sits outside the chip complex entirely, which is exactly why it belongs at the top of this list. Its physics-based simulation platform, now fused with AI/ML, is the software layer that trains models on molecular ground truth rather than internet scrapings. That is where pharma is spending, and it is where AMD’s and NVIDIA’s silicon actually gets consumed at the enterprise level.
Q1 2026 revenue hit $58.59 million, beating consensus by 23%, with drug discovery revenue more than doubling to $22.88 million. Management guided FY2026 ACV to $218 million to $228 million, and CEO Ramy Farid teased the summer 2026 launch of “Bunsen, an agentic AI co-scientist designed to autonomously execute complex molecular discovery workflows”. Shares are down 9% year to date, which is the setup: the AI narrative has not yet arrived here.
The kicker: Eli Lilly is buying Ajax Therapeutics, in which Schrodinger holds roughly a 6% equity stake. That is the second multi-billion dollar exit validating this platform. If Bunsen lands, the re-rating happens fast. But software is worthless without something to weaponize it. That is where the next name comes in.
2. nLIGHT (LASR): The Obvious Heavyweight Wall Street Is Still Underwriting nLIGHT (NASDAQ:LASR) makes high-power semiconductor and fiber lasers for two of the hottest budget lines in America: directed-energy weapons and advanced chip microfabrication. Both are AI-adjacent. Directed energy is how you shoot down the autonomous drone swarms the Pentagon is now planning against. Microfabrication is how you etch the next generation of AI accelerators. LASR sells the light for both.
Q1 FY26 revenue printed $80.18 million, up 55% year over year, with defense product revenue nearly doubling to a record $33.10 million and gross margin expanding to 33% from 27%. Analyst target price sits at $86.43 against a current print, with seven Buy ratings and one Strong Buy. The stock is already up 86% year to date, and that is before Pentagon procurement dollars actually hit the P&L.
CEO Scott Keeney flagged a “pipeline of directed energy opportunities” and the company unveiled a 70kW-class laser weapon last quarter. Lasers vaporize incoming threats. But what pilots those threats to begin with? The next name.
3. Unusual Machines (UMAC): The Drone Play the DoD Is Force-Feeding Unusual Machines (NYSE:UMAC) sells NDAA-compliant drone components through Fat Shark and Rotor Riot. Translation: it is one of the very few US-listed suppliers of drone parts that the Pentagon is legally allowed to buy. The FY2027 budget request explicitly earmarks $39.2 billion associated with the Drone Dominance mandatory funding request for autonomous systems procurement. UMAC sits directly in the crosshairs of that spend.
Q1 2026 revenue jumped to $8.10 million, up 296% year over year and beating estimates by 46%. Management says over half of Pentagon Drone Dominance program customers are UMAC clients and pegged the TAM at $90 million in 2026 and $250 million in 2027. Analyst target sits at $33.67 with six of six analysts rating it Buy or Strong Buy. CEO Allan Evans put it bluntly: “2026 has started with a bang…The demand signals are overwhelming.”
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and QuantumScape didn't make the cut. Grab the names FREE today.
Retail has already sniffed this out. Reddit sentiment ran between 68 and 85 across June, with one WSB surge driving 4,564 upvotes in a single session. Shares are up 75% year to date. The volatility is real (beta of 14.56) but so is the tailwind. Drones fly on wireless. AI data centers do not. That bottleneck belongs to the next stock.
4. Lightwave Logic (LWLG): The Bandwidth Choke Point Nobody Priced In Lightwave Logic (NASDAQ:LWLG) is developing electro-optic polymer materials that plug directly into silicon photonics and co-packaged optics. Why does that matter? AI data centers are running out of copper. Every extra terabit of GPU-to-GPU traffic strangles the fabric. Polymer modulators are one of the few paths to 200G-per-lane optics without melting the interconnect. That is the wire between every AMD and NVIDIA rack in the next build cycle.
This is a development-stage bet, with TTM revenue of just $243,100 and a market cap of roughly $1.46 billion. The stock is up 192% year to date and 663% over one year, though the Alpha Vantage analyst target sits at just $2.71, well below the current print. That gap tells you everything: the sell side has not caught up to the co-packaged optics narrative, and the stock is running without them.
This is aggressive-investor territory: no meaningful revenue, high dilution risk, a beta of 2.4, and a price-to-sales ratio of 5,995. But the payoff, if polymer modulators land in a hyperscaler qualification, is asymmetric. Which brings us to the punchline: the AI data centers running all this silicon and light need power. A lot of power. On demand. And that is a problem nobody has solved.
5. QuantumScape (QS): The Power Bank for the AI Grid QuantumScape (NYSE:QS | QS Price Prediction) has spent five years being sold as an EV battery play. That framing is wrong now. On the last call, management explicitly extended its solid-state lithium-metal platform beyond automotive into data center, robotics, aviation, and defense markets. AI compute is the fastest-growing electricity load in the country, and hyperscalers are scrambling for on-site energy storage. QS is positioning to sell into that build-out with a chemistry incumbents cannot match.
Q4 2025 EPS came in at -$0.17 versus -$0.172 expected, with the full-year 2025 net loss narrowing to $435.05 million. Liquidity sits at $970.8 million, a cash runway management pegs into the end of the decade. First-ever customer billings hit $19.5 million for FY2025, the Cobra-process QSE-5 cells are shipping to Volkswagen, and the Eagle Line pilot was inaugurated February 4, 2026. Shares are down 27% year to date, but Reddit sentiment on WSB flashed a very bullish 82 in mid-June.
The sell side is not there yet: Alpha Vantage shows seven Hold ratings and two Sell ratings, zero Buys, with a target of $7.16. That is the setup. QS is a pre-revenue name with a 2.6 beta and a projected 2026 Adjusted EBITDA loss of $250M to $275M, so nothing here is safe. But if solid-state cells become the standard backup power for AI data centers, the re-rating trumps every consensus target on the board.
The Thread AMD is racing NVIDIA for the AI crown, but the crown is only one piece of the kingdom. Software that feeds the silicon (Schrodinger), lasers that arm and etch it (nLIGHT), drones that carry it into the field (Unusual Machines), photonics that wire it together (Lightwave Logic), and batteries that keep it alive (QuantumScape) are all trading like they belong to a different narrative. In reality, they belong to the same one. The Pentagon budget, the hyperscaler capex cycle, and the pharma AI wave are all landing in 2026. The re-rating windows will not stay open long.
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SummaryBoeing and Airbus are nearing pre-crisis delivery levels, with aggregate deliveries up 11% year-over-year and order inflows robust.Airbus leads in net orders with 762 units and $47.6 billion in value, outpacing Boeing's 295 units and $32.2 billion, driven by single-aisle strength.Delivery volumes for both manufacturers are recovering; Boeing is still in recovery mode while Airbus is in growth mode, but the duopoly remains intact.I remain bullish on both BA and EADSF, expecting further production recovery to accelerate backlog conversion into revenues, profits, and free cash flow.Looking for more investing ideas like this one? Get them exclusively at The Aerospace Forum. Learn More » Christian Peters/iStock Editorial via Getty Images
Boeing (BA) and Airbus (EADSF) have a significant backlog of commercial airplanes to deliver. The main challenge for both manufacturers has been increasing production rates as supply chains remain strained. Boeing has
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
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ARLINGTON, Va., July 1, 2026 /PRNewswire/ -- The Boeing Company [NYSE: BA] will release its financial results for the second quarter of 2026 on Tuesday, July 28.
President and Chief Executive Officer Kelly Ortberg and Executive Vice President and Chief Financial Officer Jay Malave will discuss the results and company outlook during a conference call starting at 10:30 a.m. ET.
The event webcast, news release and presentation materials, as well as a subsequent transcript, can be accessed on the Events and Presentations section of www.boeing.com/investors. Participants are encouraged to verify access to the webcast and materials prior to the start of the event.
Shares of Nike (NKE) jumped a bit since the opening bell after the company beat on earnings but showed weakness in China sales. Marley walks investors through the company's commentary on the print as investors seek a "just do it" moment for the stock as it trades near 12-year lows.
It's official. Technology giant Alphabet (GOOG +0.37%) (GOOGL +0.25%) is now one of the 30 stocks that make up the Dow Jones Industrial Average, replacing Verizon Communications.
In and of itself, it isn't that big of a deal. Standard & Poor's (which manages the Dow) regularly swaps out the index's constituents to ensure this collection of blue chip stocks is a quality cross-section of the United States' economy.
This most recent switch is a big deal, however, for another reason. That's the fact that it validates Berkshire Hathaway's (BRKA +0.82%)(BRKB +0.63%) recent investment in the very same stock, and points to its likely future.
Image source: Getty Images.
No denying its important place now Berkshire's position in Alphabet wasn't initially established while current CEO Greg Abel was in charge, for the record. It was Warren Buffett who ran Berkshire when the unlikely small purchase was made in the third quarter of last year (Buffett stepped down as chief executive at the end of 2025). Buying into the conglomerate was considered unlikely because Alphabet is the sort of technology holding Buffett typically tried to avoid.
Abel essentially tripled Buffett's modest bet, though, making the nearly $30 billion worth of Class A and C shares of Google's parent that Berkshire Hathaway now owns the conglomerate's fifth-biggest holding, something Buffett likely would never have allowed to happen under his watch.
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Moreover, the fact that Standard & Poor's just added this name to the Dow not only underscores that Abel is right about Alphabet's prospects, but suggests he's willing to make bigger and bolder bets than Buffett was.
Alphabet isn't on shaky ground or at risk of imploding. But let's face it: It's not the sort of name that led Berkshire to the market-beating gains it's produced since Buffett took the helm back in 1965. It's also not the sort of American industrial name that Charles Dow and Edward Jones had in mind when the pair invented the index back in 1896.
What constitutes an "industrial" stock in the sense that it's an important market barometer, however, has evolved over time. The technology sector now accounts for almost 20% of U.S. jobs (according to the Information Technology and Innovation Foundation), and roughly 10% of domestic GDP (according to the National Science Board), despite the country's economy still being mostly service-oriented. As the nation's top gateway to the World Wide Web, plus a major provider of ancillary business and entertainment services, Alphabet facilitates a great deal of this activity one way or another.
Now Standard & Poor's recognizes the important role the company plays on this front, as Abel did just a few weeks earlier.
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Connect the dots Not all worthy blue chip names are in the Dow, just as not all those selected for inclusion remain in it indefinitely. As was noted, Verizon was removed to make room for Alphabet.
Becoming part of this iconic index is an amazing accolade, nonetheless, in that it unofficially confirms a stock's status as a quality blue chip; something that Buffett would be far less likely to assert based on his past statements. Abel apparently sees it differently. Standard & Poor's agrees with Abel.
Perhaps more important to interested investors, this shift is likely just a glimpse of what to expect from Berkshire Hathaway going forward. Abel doesn't seem nearly as hesitant as Buffett was to own "new economy" stocks.
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Analysts at Evercore ISI just reiterated an outperform rating on Nvidia (NASDAQ: NVDA), saying the tech giant is the best idea, as noted by CNBC. “We believe that the Tectonic Shift to the current Parallel Processing / IoT Computing Era started 5-to-8 years ago, and that NVDA is the dominant and the only full-stack chip.”
As we kick off the third quarter, futures are in the red. The S&P 500 is down 0.23%, or by 17 points. The SPDR S&P 500 ETF (SPY) is down by 0.33%, or by $2.46. The Dow is down by 0.25%, or by 143 points. The Nasdaq is down by 0.81%, or by 247 points. Oil is back below $70 at $68.91. Bitcoin is up by $25.10 at $58,549.04.
All as investors lock in profits and shift their focus to a busy day of economic data and comments from Federal Reserve Chair Kevin Warsh.
All eyes on the Federal Reserve Investors are watching for remarks from Fed Chair Kevin Warsh at the European Central Bank’s annual forum in Portugal. Markets are looking for clues on the path of interest rates after stronger-than-expected labor market data cooled expectations for near-term rate cuts. Treasury yields climbed Tuesday, adding pressure to equities heading into today’s session.
AI remains the market’s biggest story Artificial intelligence continues to dominate Wall Street. Analysts expect AI infrastructure companies to account for a significant share of corporate earnings growth this season, reinforcing optimism that technology will remain the market’s primary leadership group. At the same time, investors are becoming increasingly selective after months of outsized gains in chipmakers and AI software companies.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Nike didn't make the cut. Grab the names FREE today.
Nike tumbles after earnings Nike (NYSE: NKE | NKE Price Prediction) shares are under pressure in premarket trading after executives warned that sales weakness—particularly in China—could continue despite the company posting better-than-expected quarterly results. EPS of 72 cents beat by 59 cents. Revenue of $11 billion, down 0.9% year over year, beat by $150 million.
As quoted in a company press release, “We delivered fourth quarter results in line with our expectations, demonstrating financial discipline in an increasingly challenging operating environment, where sell-through remains challenged,” said Matthew Friend, Executive Vice President and Chief Financial Officer, NIKE, Inc. “We are improving the health of our business, managing our product portfolio and investing in marketplace elevation, while adjusting our operating costs for greater efficiency over time.”
What investors are watching today Markets will be closely monitoring the ISM Manufacturing Index, additional labor market data, and comments from central bank officials for clues about the direction of interest rates. Investors are also beginning to position for Friday’s closely watched U.S. jobs report, which could influence expectations for the Fed’s next policy move.
In short, after an extraordinary first half of the year powered by artificial intelligence and corporate earnings, Wall Street is entering July with momentum—but also heightened expectations. The next phase of the rally will likely depend on whether economic data continues to support growth and whether the AI sector can continue delivering the earnings needed to justify lofty valuations. Plus, there are concerns about what the Federal Reserve will do next and how it could potentially impact markets and the economy.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Nike didn't make the cut. Grab the names FREE today.
Nvidia stock NVDA edged lower on Wednesday as investors appeared to take profits across semiconductor stocks following a record-breaking first half for the sector.
Shares of Nvidia fell 2.15% to $195.79 in early trading.
The decline came after the stock gained 2.6% on Tuesday and reclaimed the $200 level for the first time in several sessions.
Nvidia remains down nearly 7% over the past month, despite recovering from recent lows.
The broader technology sector was also under pressure. The Nasdaq Composite fell 0.7%, while the S&P 500 lost 0.3%. The Dow Jones Industrial Average slipped 27 points.
The weakness comes after a remarkable run for semiconductor stocks during the first six months of 2026.
The VanEck Semiconductor ETF gained over 70% in the first half of the year, marking the strongest first-half performance since the fund's launch in 2000.
Many of the sector's biggest winners experienced sharp pullbacks on Wednesday.
Micron fell 6%, though the memory-chip maker remains up roughly 270% year to date.
Sandisk dropped 8% after surging more than 850% during the first half.
Broadcom declined about 1%, while AMD slipped around 4%.
The sector's gains have been driven by expanding demand for artificial intelligence infrastructure, but investor enthusiasm has increasingly spread beyond graphics processing units to other parts of the semiconductor ecosystem.
While Nvidia remains the dominant supplier of AI accelerators, the market narrative has broadened significantly during 2026.
The first phase of the AI boom centered largely on graphics processing units, where Nvidia established a commanding position.
More recently, investors have focused on areas such as memory chips, central processing units, and semiconductor manufacturing equipment.
Companies, including Micron, have benefited from supply constraints in memory markets, while Intel and Advanced Micro Devices have gained from growing expectations that agentic AI systems will require significantly more CPU capacity alongside GPUs.
The shift has contributed to Nvidia's relative underperformance despite continued strength in its underlying business.
According to CNBC's Jim Cramer, Nvidia's stock may have become a source of funds for investors seeking exposure to other areas of the AI supply chain that appear earlier in their growth cycles.
Nvidia shares rose roughly 1,000% between the launch of ChatGPT in late 2022 and the end of 2025, dramatically outperforming broader markets.
That strong performance has left some investors looking elsewhere for the next phase of AI-related gains.
Adding to the debate around semiconductor valuations, investor Michael Burry disclosed a new round of bearish positions targeting the sector.
In a Substack post published Tuesday, Burry said he refreshed his wager against the iShares Semiconductor ETF by purchasing put options expiring in March 2027.
The ETF includes major chipmakers such as Nvidia, AMD, Broadcom, Intel, Micron, and Applied Materials.
Burry argued that semiconductor stocks have become significantly extended after the AI-driven rally.
He pointed to the Philadelphia Semiconductor Index trading at one of its most stretched levels relative to its 200-day moving average.
"The SOXX itself is a pure form of overvaluation in an index, a form that is rarely seen and never so easily recognized as such," Burry wrote.
Investor concerns around Nvidia extend beyond valuation.
As AI spending continues to expand, competition across the semiconductor industry has intensified.
Memory suppliers, CPU manufacturers, custom-chip developers, and equipment makers are all capturing larger portions of AI-related investment budgets.
Nvidia remains best known for its graphics processors, but investors are increasingly evaluating whether future AI infrastructure spending will be distributed more broadly across the industry.
HomeInvestingYour Digital SelfYour Digital SelfNear-term revenue belongs to the motion and sensor companies supplying the industry’s buildoutJuly 1, 2026, 12:13 p.m. ET
Nvidia CEO Jensen Huang has called humanoid robots a “multitrillion-dollar economic opportunity.” Photo: Getty Images/iStockphotoJensen Huang has taken to calling robotics and physical AI the next trillion-dollar opportunity for Nvidia NVDA, and the market takes the company’s CEO at his word. Nvidia’s physical-AI revenue has run past $9 billion over the trailing 12 months, up from $6 billion the year before, and analysts now treat robots as its second act.
Nvidia’s ambition is to do for robotics what its CUDA platform did for accelerated computing. Huang has called humanoid robots a “multitrillion-dollar economic opportunity.” Nvidia’s newly announced Halos for Robotics safety stack sharpens the point: The company is building the software, compute and safety layer around humanoids, not trying to own the entire machine. Nvidia wants the operating layer underneath — and if physical AI scales the way factory automation has, it will get it.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of HOG, ADBE, ISRG, NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
I have downside protection in the form of QQQM puts. They are long-dated, December 2028.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
I bought NVIDIA again last Friday, and I plan to buy it again this week if the selloff holds. That makes five additions in eight weeks for me, and the case for the next one has only gotten stronger. NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) is down 13% in June and 7.55% over the past month, sitting at $194.97 while the company is printing the strongest fundamentals it has ever produced. That gap is why my finger keeps finding the buy button.
The thesis is simple. I am buying the only company selling the picks and shovels for what Jensen Huang calls “the largest infrastructure expansion in human history.” The institutional rotation out of semiconductors leaves NVIDIA’s business intact while lowering the price I pay to own it.
The Numbers That Keep Me Adding Start with Q1 FY2027. Revenue came in at $81.615 billion, up 85.23% year over year, beating consensus by 3.16%. Non-GAAP EPS landed at $1.87 versus the $1.7738 estimate, the fourth consecutive earnings beat. Net income grew 210.63% YoY to $58.321 billion. Free cash flow hit $48.554 billion, up 85.41%. Non-GAAP gross margin held at 75.0%, versus 60.8% a year ago. Those are platform margins, and they are widening.
Growth is accelerating. Quarterly revenue growth moved from 55.6% to 62.5% to 73.2% to 85.2% across the last four quarters. Forward guidance calls for $91.0 billion in Q2 revenue, and that number assumes zero Data Center compute revenue from China.
Then there is the capital return. The board raised the quarterly dividend from $0.01 to $0.25 per share and approved an additional $80.0 billion buyback authorization on top of $38.5 billion still outstanding. NVIDIA returned roughly $20.0 billion to shareholders in Q1 alone. At a forward P/E of 22 with revenue compounding above 80%, that math works for me.
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The Moat I Cannot Find Anywhere Else NVIDIA has Meta committed to millions of Blackwell and Rubin GPUs, OpenAI signed up for at least 10 gigawatts of NVIDIA systems, Anthropic at 1 gigawatt, and CoreWeave building 5+ gigawatts of AI factories by 2030. Data Center networking revenue grew 199% YoY, proof that the full-stack platform is being adopted alongside the GPUs. The $119.0 billion in supply commitments tells me management sees demand years out.
The Risk I Refuse to Ignore China is gone from the Q2 outlook. Zero Data Center compute revenue assumed, against $4.6 billion in H20 shipments in the year-ago quarter. Insiders also sold heavily in June, including coordinated dispositions by CEO Jensen Huang, CFO Colette Kress, and three other executives at $207.41 on June 17. I sat with both facts. The China hole is real, and the company guided to $91 billion anyway. The insider sales follow pre-set 10b5-1 plans at prices above where I am buying today. The thesis holds.
Why the Buy Button Stays Active The five-year return on NVIDIA is 878.06%. The ten-year is 16,943.1%. Those are history. I am buying the cash flows underneath them at a forward multiple of 22, with a 25x dividend hike fresh in the account and an $80 billion buyback at my back. The rotation handed me a price. I intend to use every dollar of it.
Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now.
At $73.78, Netflix (NASDAQ:NFLX | NFLX Price Prediction) looks compelling at current levels. Shares sit barely above the $70.86 52-week low after shedding 44.24% of its value while the broader market rallied.
Netflix dominates global subscription video with more than 325 million paid memberships, an advertising tier scaling toward $3 billion in 2026 revenue, and operating margins approaching 31.5%. The selloff traces to a Q1 EPS miss, the abandoned Warner Bros. deal, and content-amortization fears, yet the operating engine has measurably accelerated.
A Pullback That Looks Disconnected From Fundamentals Buyers see a rare valuation reset in a category-defining business. Netflix trades at a trailing P/E of 24x and a forward P/E of 23x, modest for a company guiding to 12% to 14% revenue growth and FY26 free cash flow of $12.5 billion, raised from $11 billion.
The ad-supported tier captured over 60% of Q1 sign-ups in ads markets, with advertiser count up 70% year over year to more than 4,000 clients. Management resumed buybacks aggressively, repurchasing 13.5 million shares for $1.3 billion in Q1 with $6.8 billion remaining. Wall Street backs the case: 37 of 50 analysts rate NFLX Buy or Strong Buy, zero rate it Sell.
The Bear Argument: Competition Is Outrunning the Story Bears note the Q1 EPS print of $1.23 missed expectations by 8.55%, and reported net income of $5.28 billion was inflated by a $2.80 billion Warner Bros. termination fee. Strip that out and operating performance looks far less explosive.
Competition from Disney, Amazon, Apple, YouTube, and TikTok intensifies for attention and ad dollars. Content amortization growth is first-half weighted in 2026, premium pricing has been implemented in major markets, and walking away from Warner Bros. caps Netflix’s IP acceleration. A beta of 1.49 means further drawdowns are plausible if guidance slips again.
The Hold Argument: Wait for One More Quarter The patient view: Netflix missed earnings in two of the last three quarters, including a 15.71% miss in Q3 2025, and the next print arrives within weeks. An in-line Q2 with operating margin in the 32% to 36% band would likely re-rate the stock; another shortfall could puncture the 52-week low.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Netflix didn't make the cut. Grab the names FREE today.
The Numbers Tell a Pricing-In Story NFLX trades at $73.78, down 21.31% year to date versus the S&P 500’s 8.66% gain. The consensus analyst target of $114.15, drawn from 50 analysts, implies substantial upside.
The ratings breakdown:
Strong Buy: 8 Buy: 29 Hold: 13 Sell: 0 Strong Sell: 0 Netflix carries an EV/EBITDA of 9x, operating margin of 32.3%, and ROE of 48.5%. The 200-day moving average of $97.04 sits well above current levels, underscoring how much pessimism is already in the price.
At $73.78, the Setup for Netflix The market is punishing one EPS miss and lost Warner Bros. optionality while the underlying business is putting up its best free cash flow guide ever at $12.5 billion, stepping operating margin to 31.5%, and doubling advertising revenue toward $3 billion.
The path to appreciation has three legs. First, the July earnings report against a 32.6% operating-margin guide should reset the narrative; prediction markets assign just a 2.3% probability of margins printing below 30%. Second, the content slate carrying Denzel Washington, Greta Gerwig’s Narnia, and David Fincher de-risks engagement through 2026. Third, the resumed buyback at depressed prices compounds per-share value with $6.8 billion authorized.
Risk/reward asymmetry has shifted at these levels. With shares within $3 of the 52-week low, the bear scenario now requires fundamentals to deteriorate outright. The thesis breaks if Q2 operating margin lands below 30% or FY26 free cash flow guidance is cut.
Netflix is trading near a 52-week low while management is raising free cash flow guidance and repurchasing stock, a notable divergence between price and fundamentals.
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While Wall Street prepares for the prospect of a more aggressive Federal Reserve, Bank of America CEO Brian Moynihan has a reassuring message for anxious investors.
Despite Bank of America's issuing the most hawkish forecast on Wall Street — predicting three interest rate hikes under Federal Reserve Chair Kevin Warsh — Moynihan insists a recession is nowhere in sight.
"The [U.S.] president thought it was going to be rate cuts. Now we're talking about rate hikes. Will that lead us into a recession?" FOX Business’ Maria Bartiromo asked Moynihan on the New York Stock Exchange floor Wednesday.
SUPREME COURT RULES ON TRUMP'S ATTEMPT TO FIRE FED GOVERNOR LISA COOK
"No, because at the end of day, that's the balance the Fed has to have, is they're trying to keep the inflation from getting out of control, price stability," Moynihan responded. "And Chairman Warsh made it clear that's what he stands for."
Bank of America CEO Brian Moynihan visits Fox News Channel Studios on June 3, 2026, in New York City. (Getty Images)
"He's focused on that, that's their job. But you also have to be mindful of the other side, which is, recession means unemployment goes up, and you have to stabilize unemployment. So they've gotta mind that," he added. "The U.S. economy is growing better than most. The inflation is higher than people want it to be, but if you talk to people who are in the positions Kevin's in… they could never get inflation back. They're sort of saying, ‘Wait, we can never get the economies to recover fast enough.’ I think it's easier to bring it down carefully than it is to get it going, and so you want to air a little bit to the upside."
During their latest meeting, the Federal Reserve announced that it would hold interest rates steady due to concerns about elevated inflation amid the war in Iran, as Warsh's tenure leading the central bank begins in earnest.
Fed policymakers voted 12-0 to leave the benchmark federal funds rate unchanged at its current range of 3.5% to 3.75%. The move follows the central bank's decisions to hold rates steady in January, March and April after three consecutive 25-basis-point rate cuts in September, October and December of last year.
Moynihan argues that higher interest rates shouldn't be feared but rather celebrated as a sign of a strong U.S. economy.
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"We have a great research team… They've also put three Fed raises on the table, meaning that the inflation is going to be stickier, go[ing] all the way through ‘27 into ‘28, largely just to deal with the aftermath of the oil price shock," the CEO said. "But at the end of day, the economy has grown a little faster now than they thought it was going to grow a few months ago."
"Inflation will take a while, rates will be higher. But everybody argues for rates to be high or low. At the end of it, rates are an outgrowth of a very strong economy in the United States and a need to keep inflation in check."
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FOX Business’ Eric Revell contributed to this report.
Key Takeaways Walmart Connect grew 44% in Q1, outpacing 36% U.S. advertising revenue growth. Sellers lifted ad spending by more than 50% after sales gains, reinforcing Walmart's ad opportunity.WMT's U.S. gross margin rose 29 bps, helped mainly by digital advertising and better business mix. Walmart Inc. (WMT - Free Report) is steadily reshaping its profit profile by scaling higher-margin digital businesses alongside its core retail operations. Within that shift, Walmart Connect is emerging as an increasingly important part of the company’s margin story.
In the first quarter of fiscal 2027, Walmart U.S. advertising revenues increased 36%, while Walmart Connect, excluding VIZIO, grew 44%. This growth came alongside 26% U.S. e-commerce sales growth and nearly 50% Marketplace sales growth, giving brands and sellers a broader, more engaged customer base.
Marketplace growth is also reinforcing the advertising opportunity. Sellers increased their advertising spending by more than 50% after seeing corresponding sales gains. Walmart also enhanced its ad capabilities via AI-powered campaign optimization tools and expanded reach through VIZIO’s connected TV platform.
The margin impact is becoming more visible. Walmart U.S. gross margin expanded 29 basis points, helped by a favorable business mix led primarily by digital advertising, though higher fuel costs in distribution and fulfillment partly offset the gains. Adjusted operating income for Walmart U.S. rose 5.7%, reflecting improved e-commerce economics, higher Walmart+ membership fee revenues and other income benefits.
Walmart Connect may not yet be proven as WMT’s biggest margin driver, but it is clearly becoming a more meaningful one. Its rapid growth, seller engagement and role in improving business mix suggest advertising is strengthening Walmart’s omnichannel economics and supporting a more profitable growth model.
How TGT and KR Are Using Retail Media to Lift MarginsTarget Corporation (TGT - Free Report) is also using retail media to support profitability beyond merchandise sales. In first-quarter 2026, the company reported a 24.6% increase in non-merchandise revenues, driven by growth in Roundel advertising, Target Circle 360 membership fees and Target Plus marketplace revenues. These higher-margin streams helped lift TGT’s gross margin rate to 29% from 28.2% a year ago, along with lower markdowns and supply-chain efficiencies. For Target, Roundel is becoming a more visible earnings lever within its broader digital ecosystem.
The Kroger Co. KR is pursuing a similar path through higher-margin alternative profit businesses. In first-quarter 2026, the company’s Kroger Precision Marketing profit grew more than 20%, supported by strong on-site customer traffic and higher advertiser commitments. KR also delivered 19% adjusted e-commerce sales growth, while e-commerce, including media, reached profitability for the first time. By leveraging first-party customer data and digital engagement, Kroger is making retail media a more meaningful contributor to margin expansion beyond grocery sales.
WMT Stock Price Performance, Valuation & EstimatesShares of Walmart have risen 16% over the past year compared with the industry’s growth of 14.9%.
WMT Price Performance Versus Industry
Image Source: Zacks Investment Research
From a valuation standpoint, WMT trades at a forward price-to-earnings ratio of 37.17, higher than the industry’s average of 34.18.
WMT Valuation Compared to Industry
Image Source: Zacks Investment Research
Key Takeaways Johnson & Johnson's Darzalex, Tremfya and Erleada should drive Innovative Medicine growth. JNJ faces steeper Stelara biosimilar pressure and continued weakness in Imbruvica sales. Investors await updates on Icotyde, Inlexzo and Imaavy sales and commercialization plans. Johnson & Johnson (JNJ - Free Report) , through its Innovative Medicine segment, commercializes multiple blockbuster therapies spanning a wide range of disease areas, such as neuroscience, cardiovascular and metabolic disorders, immunology, oncology, pulmonary hypertension (PH), and infectious diseases. The company is set to announce its second-quarter 2026 results on July 15, and investors will be closely watching the performance of the Innovative Medicine segment.
Below, we highlight some key factors that may have influenced the segment’s sales during the quarter.
J&J’s Innovative Medicine unit is showing a growth trend, despite the loss of exclusivity (LOE) of the blockbuster drug, Stelara. The segment has recorded four consecutive quarters of sales of more than $15 billion despite the Stelara LOE, a trend likely to have continued in the second quarter of 2026.
J&J expects growth in the second quarter to be driven by higher sales of key products such as Darzalex, Tremfya and Erleada due to strong market growth and share gains.
Other products like Uptravi and Opsumit are likely to have witnessed continued growth.
New drugs like Carvykti, Tecvayli, Talvey, Rybrevant and Spravato are also likely to have contributed to top-line growth. However, sales of Xarelto, Simponi/Simponi Aria and Remicade declined in the first quarter, a trend likely to have continued in the second quarter.
Also, generic/biosimilar competition for key drug, Stelara, and lower sales of Imbruvica are likely to have hurt top-line growth.
Several biosimilar versions of Stelara were launched in the United States in 2025. According to patent settlements and license agreements, Amgen (AMGN - Free Report) , Teva Pharmaceutical Industries, Samsung Bioepis/Sandoz and some other companies launched Stelara biosimilars in 2025. Stelara’s LOE negatively impacted the Innovative Medicines segment’s growth by 9.2% in the first quarter. We expect the negative impact to be steeper in the second quarter of 2026.
Imbruvica sales are likely to have declined due to rising competitive pressure in the United States due to new oral competition.
Investors will look for initial sales numbers and commercialization plans of J&J’snewly launched oral pill for plaque psoriasis, Icotyde, which was approved by the FDA in March 2026.
Investors will also be keen to know how J&J’s other new drugs approved last year performed. These products are Inlexzoh, a first-of-its-kind drug-releasing system, for treating high-risk non-muscle invasive bladder cancer and Imaavy (nipocalimab) for treating generalized myasthenia gravis.
Inlexzo generated sales of slightly above $30 million in the first quarter. J&J received a permanent J-code for Inlexzo reimbursement in April, which should have boosted patient access and sales for the therapy in the second quarter. J&J did not separately disclose sales of Imaavy in the first quarter results. It remains to be seen if it does so in the second quarter.
J&J Key CompetitorsImmunology and oncology are J&J’s key areas. Other large drugmakers with a strong presence in the oncology market include Novartis, AstraZeneca (AZN - Free Report) , AbbVie (ABBV - Free Report) , Amgen, Merck, Bristol-Myers, Roche and Pfizer. In immunology, AbbVie, Amgen, Sanofi, AstraZeneca and Pfizer hold a strong position.
JNJ’s Price Performance, Valuation and EstimatesJ&J’s shares have outperformed the industry so far this year. The stock has risen 24.1% in the past year compared with 14.5% appreciation of the industry.
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From a valuation standpoint, J&J is slightly expensive. Going by the price/earnings ratio, the company’s shares currently trade at 21.02 forward earnings, higher than 19.02 for the industry. The stock is also trading above its five-year mean of 15.65.
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The Zacks Consensus Estimate for 2026 earnings has been stable at $11.57 per share over the past 60 days, while that for 2027 earnings has gone up from $12.58 per share to $12.60 over the same time frame.
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J&J has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
