Netflix letos klesl o 17 % a po neúspěšných pokusech o Warner Bros. a Roku čelí pochybám o růstu. Firma ale uvádí více než 325 milionů platících předplatitelů a 16% růst tržeb v prvním čtvrtletí.
Netflix (NFLX 0.30%) stock is down 17% year to date and slipped again on June 16 after reports linked the company to a failed bid for Roku. It's now official that Fox has reached an agreement to acquire the popular streaming platform in a $22 billion deal, which means if the reports about Roku are accurate, Netflix has now missed on two deals this year. Earlier this year, Netflix walked away from Warner Bros. after Paramount Skydance swooped in with a better offer.
Wall Street believes failure to win these deals indicates a weakening growth story, but is that the right interpretation?
Image source: The Motley Fool.
Disciplined capital allocation Management has emphasized that acquiring quality assets would be a luxury, not a necessity, for its growth. It has over 325 million paying members, helping it generate $13 billion in profit on $47 billion of trailing revenue.
Wall Street might think Netflix is running out of opportunities, necessitating acquisitions to drive further growth. This may explain the stock's recent dip. But that doesn't align with the current momentum in the business and where it is investing.
Netflix is set to spend $20 billion this year on content production. The decision to not engage in a bidding war for these deals reflects discipline. Management understands the value of its content spending and the returns it will yield over time. It clearly concluded that the price required to win a bidding war would yield a lower return than investing in its own content. That's the kind of disciplined capital allocation that Warren Buffett loves.
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Why Netflix is still a solid investment Netflix still has a small share of total TV viewing time. It estimates that it has captured only 45% of its addressable market among broadband households. That indicates the potential for as many as 800 million subscribers.
The business looks healthy. Revenue grew 16% year over year in the first quarter. These are solid numbers for a competitive market. Google's YouTube has consistently ranked higher than Netflix in TV viewing share.
Netflix is expanding its content library to include live events and video podcasts, which continue to show solid traction with its members. These are opportunities to gain a larger share of people's viewing time and capture more of their addressable market.
The stock is trading at just 21 times 2026 earnings estimates. This seems too conservative for a strong brand generating over a 30% operating margin and still growing revenue at double-digit rates. Investors have the chance to buy shares in a disciplined company at an attractive price with room to grow.
John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix, Roku, and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
Omnicom Media a Netflix oznámily nové partnerství, které propojí publikační data Acxiom s AI‑poháněnou reklamní technologií Netflixu. Cílem je vytvářet, optimalizovat a měřit personalizovanější kampaně na míru diváckým zvyklostem.
Announcement Launches Omnicom Media's Cannes News Blitz Revealing Partnerships that Connect Brand Content to Streaming Programming, Viewing Experiences and Consumer Expectations
, /PRNewswire/ -- Omnicom Media, an Omnicom (NYSE: OMC) Connected Capability, and Netflix today announced a new collaboration that combines Omnicom's Media Group's Acxiom audience intelligence with Netflix's AI-powered advertising technology to help brands deliver more engaging and personally relevant advertising experiences on Netflix. Clients will be able to use Netflix's AI-enabled ad format, which marries advertisers' creative with the shows, films, and worlds Netflix members love, with Acxiom insights to create, optimize, and measure campaigns tailored to viewers' habits.
This capability reflects findings in Omnicom Media's Connected Content research, which explores what types of content, creative experiences and delivery methods drive stronger engagement and connection with audiences. Consumers respond more positively to advertising experiences that align with the content they are actively choosing to watch and that feel additive, timely, and personalized rather than interruptive.
"Consumers have made it clear that relevance drives engagement, particularly in premium streaming environments where expectations for the viewing experience are exceptionally high," said Megan Pagliuca, Chief Product Officer, Omnicom Media. "This collaboration with Netflix creates an enhanced framework for how brands can connect audience intelligence with creative transformation in real time. By bringing these capabilities together, we are enabling brands to deliver advertising that feels more connected to the moments in which viewers are already highly engaged."
Under the collaboration, Omnicom Media will provide advertiser-defined Acxiom audience segments alongside a brand brief. Netflix then applies those audience segments with its proprietary AI engines and LLM-enabled technology to fuse relevant Netflix titles with assets produced by the Omnicom Production content engine to build a highly personalized and engaging ad for members. This allows advertisers to show up in ways that feel natural and to build multiple iterations of a single ad.
"Since launching the Netflix Ads Suite, we've been committed to reimagining what advertising performance looks like. By combining Omnicom's audience planning with Netflix's AI capabilities, proprietary first-party data, and some of the most popular and beloved shows and movies, we can deliver ads that are as compelling as the titles they surround. For Omnicom clients, this offers creative that doesn't just capture attention — it drives outcomes. That's the power of bringing creativity, media, data, and AI together on one service," said Jon Whitticom, Vice President of Ads Product, Netflix.
In addition to expanded relevance and personalization, the collaboration provides advertisers with closed-loop first-party measurement capabilities to better understand campaign effectiveness and performance across audiences, format variants, and content environments.
"As marketers, we are constantly looking for ways to make advertising feel more relevant and additive to the consumer experience," says Catherine Berger at Bimbo Bakeries. "What stood out for us is the ability to align creative with the content environment in a way that feels natural and personalized, while still maintaining speed to market and brand consistency at scale."
The capability will be available to Omnicom Media clients in the US and will roll out to additional countries by the end of the year.
CONTACT: [email protected]
ABOUT OMNICOM MEDIA
Omnicom Media, an Omnicom (NYSE: OMC) Connected Capability, is the world's largest global media management network. Powered by the Omni Intelligence Platform, Omnicom Media agencies leverage $75.6 billion in billings, 40,000+ specialists across 70+ markets, and the industry's most powerful portfolio identity, commerce, and intelligence assets to design dynamic Growth Ecosystems that enable the world's most ambitious businesses to grow faster and smarter. The Omnicom Media portfolio includes global media agency brands OMD, Initiative, PHD, UM, Hearts & Science, and Mediahub; core Omnicom Integrated Media offerings Acxiom, the world's premier identity solution, and the Flywheel digital commerce practice; and specialty services across the cloud consulting, creator, financial, healthcare, and sports & entertainment categories.
Netflix se zaměřuje na živé sporty, protože jeho největší hity „Squid Game“ a „Stranger Things“ jsou už uzavřené. Akcie mezitím spadly na nové 20měsíční minimum.
Netflix’s New StrategyIn recent years, Netflix has placed greater emphasis on live sports content. The theory is that live viewership can help boost advertising for Netflix’s ad-free and ad-supported plans when it comes during sporting events with sports fans used to ads.
The company currently has rights to WWE, MLB and NFL content and it may add more sports content. Instead of bidding on large and costly full-season rights, Netflix has been selective. For the NFL, this includes airing a total of five games for the 2026 season and being the home of the NFL Honors award show the week of the Super Bowl in February 2027. This is up from two Christmas Day games during the 2025 season.
Netflix will stream the following games live:
Netflix now has a four-year partnership through the 2029-2030 season with the NFL that will help provide content multiple months of the year. Last year, the platform set a record, averaging 27.5 million U.S. viewers on Christmas for the Detroit Lions vs. Minnesota Vikings game.
Netflix also has rights to the Home Run Derby, a key event of the MLB All-Star Game break, along with several other one-off MLB events.
Netflix Boxing: Knockout Or Bust?Outside of NFL and MLB, Netflix also has the upcoming Floyd Mayweather and Manny Pacquiao rematch on Sept. 19, but that fight remains in limbo. Boxing promoters CSI Entertainment have filed a lawsuit against Mayweather and is seeking to block Netflix from airing the bout.
The loss of that fight could sting Netflix, which has seen success with boxing and MMA events. A recent May MMA event with MVP Promotions drew an average of 12.4 million viewers and a peak of 17 million viewers, setting new MMA records.
Are Live Sports Enough?Live sports is not the only content that Netflix has to offer subscribers, with the streamer also pumping out original series and movies every month alongside other acquired media.
The problem is that some of the company’s biggest series and movies are in the rearview mirror now.
The company’s two biggest hits, "Squid Game" and "Stranger Things," are now complete, having helped boost overall financials in recent years and delivered strong subscriber figures and low churn.
Without those hits, fans are left with "Bridgerton" and "One Piece," both of which don’t have new content until 2027.
The top 10 movies list includes one film from 2026 ranking ninth all-time, and two films from 2025. The other seven films are two years old or older.
Netflix announced it reached the 250 million monthly active user milestone for its ad-supported plan earlier this year. The company no longer breaks out subscriber figures, which could have investors and analysts zeroed in on other key metrics.
The company reports financial results on July 16, which comes after missing earnings per share estimates from analysts in two of the last three quarters.
A company that was heavily against acquisitions for years now considering buying other media and streaming companies could suggest that its best years of growth are behind.
Netflix Stock Price ActionAt last check, Netflix stock traded at around $72.83 on Tuesday after hitting a new 20-month low of $71.81 on Monday. The stock is down 19.9% year-to-date in 2026 and down 41.9% over the last 52 weeks.
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Netflix po ztroskotání akvizice Warner Bros. Discovery hledá nový růstový příběh, zatímco jeho akcie od února klesly o 14 %. Za 12 měsíců odepsaly přes 40 %.
Netflix shares have come under pressure in recent months as investors question what will drive the company's next phase of growth following the collapse of its proposed acquisition of Warner Bros. Discovery.
The streaming giant's stock has fallen 14% since Feb. 26, when Netflix declined to match Paramount Skydance's $81 billion bid for Warner Bros. Discovery.
Over the past 12 months, the shares have lost more than 40% of their value, despite the company continuing to post solid growth and profitability.
The failed deal highlighted both the opportunities and challenges facing Netflix as it seeks new ways to attract subscribers and increase engagement.
NFLX shares were up 0.27% on Monday.
Netflix has broadened its offerings beyond traditional video streaming by expanding into podcasts and gaming.
During the FIFA World Cup, users have been able to watch The Rest Is Football, a daily video podcast hosted by former England striker and BBC presenter Gary Lineker, and play the video game FIFA World Cup: Launch Edition.
The initiatives are part of a broader strategy aimed at increasing user engagement and supporting subscriber growth after Netflix cracked down on password sharing, introduced advertising-supported subscription tiers, and raised prices.
However, analysts remain skeptical that these newer businesses can materially move the company's financial performance.
“Barring an acquisition, I don’t think there’s a ton to move the needle beyond the core business,” Morningstar analyst Matthew Dolgin said in a Barrons report.
“To get sentiment as bullish as it was before, they really need to show more acceleration.”
Dolgin rates Netflix two stars out of five and estimates that $80 would be a fair value for the stock.
One of Netflix's biggest challenges is maintaining viewer engagement in an increasingly competitive streaming market.
According to Nielsen data, Alphabet's YouTube TV increased its share of US streaming time to 28% from 25% over the two years through March 2026.
During the same period, Netflix's share fell to 17% from 21%.
Analysts say the decline reflects concerns over the company's intellectual property portfolio and ability to consistently produce blockbuster content.
“People are wondering what turns the ship here. There’s not a clear view of what Netflix does next, and that’s why the stock has struggled,” Matthew Condon, a director of equity research at Citizens JMP who rates the stock at Market Perform.
“Netflix’s share of streaming time is very stagnant,” says Condon. “They don’t have a ton of great intellectual property, which was the interesting thing about Warner Bros.”
The abandoned Warner Bros. acquisition would have provided Netflix with major franchises, including Harry Potter and Batman, assets that could have helped improve user engagement.
Content spending and M&A questions persistNetflix avoided taking on more than $50 billion in additional debt by stepping away from the Warner Bros. transaction and received a $2.8 billion breakup fee.
Still, investors remain concerned that the company could pursue another acquisition to accelerate growth.
Rumors linking Netflix to Lionsgate Studios have persisted despite the company denying interest in a deal.
The company also faces leadership uncertainty following the announcement that co-founder Reed Hastings would step down as chairman.
Meanwhile, Netflix plans to increase content spending by 10% in 2026 as it seeks to develop another global hit comparable to Squid Game or Stranger Things.
Although such investments could improve engagement, they are also expected to pressure profit margins.
Despite the recent selloff, some investors see value emerging.
The stock currently trades at a price-to-earnings multiple of 24, roughly in line with the S&P 500 average, underscoring the debate over whether Netflix's recent weakness represents a long-term buying opportunity or a reflection of slowing momentum.
Mastercard se připravuje na agentní obchodování, kde AI agenti nakupují a platí za zákazníky. Spustila Agent Pay a Verifiable Intent pro bezpečné a autorizované transakce.
Key Takeaways Mastercard is positioning for agentic commerce, where AI agents shop and pay for consumers.Agent Pay and Verifiable Intent aim to secure AI-driven purchases and consumer authorization.Tokenization and cybersecurity offerings can address trust challenges in autonomous transactions. Mastercard Incorporated (MA - Free Report) is positioning itself for the rise of agentic commerce — a new form of digital shopping in which AI-powered agents can search, compare and purchase products on behalf of consumers. As AI becomes increasingly integrated into everyday commerce, the payments industry is entering a new phase where transactions may be initiated by software agents rather than people directly. This shift could create a significant new source of digital payment activity.
To support this evolution, Mastercard has introduced Agent Pay, a framework designed to enable secure AI-driven transactions. It has also expanded its collaborations with leading AI firms, including OpenAI, while launching Verifiable Intent, a solution that helps verify and record consumer authorization when an AI agent makes a purchase. Moving beyond pilots, recently, MA and PhotonPay completed a live agentic payment transaction in Hong Kong, demonstrating how an AI agent can autonomously select and execute a purchase using tokenized payment credentials.
Agentic commerce requires trusted identity verification, credential protection, fraud monitoring and dispute management — areas where Mastercard already has strong capabilities. Its tokenization technology and cybersecurity offerings can help address the trust and security challenges associated with autonomous transactions. These strengths complement its Value-Added Services and Solutions business, which posted 18% year-over-year revenue growth on a currency-neutral basis in the first quarter of 2026.
Although still in its early stages, MA is building the infrastructure needed for an AI-driven economy. As AI-powered assistants become more widely used, Mastercard could benefit from higher transaction volumes, broader service adoption and new monetization opportunities across its payments and technology ecosystem.
How Are Competitors Faring?Some of MA’s competitors in the fintech space include Visa Inc. (V - Free Report) and Affirm Holdings, Inc. (AFRM - Free Report) .
Visa is aggressively expanding its AI-driven commerce ecosystem through initiatives like Visa Intelligent Commerce and the Agentic Ready program. V is testing agent-initiated payments, strengthening tokenization and fraud controls, and building infrastructure that allows AI agents to securely shop and transact across global merchant networks.
Affirm is strengthening its position in AI-powered commerce through an expanded partnership with Google. By integrating its BNPL services into Google Search, AI Mode and the Gemini app through Google Pay, AFRM is aiming to make instalment financing more accessible within AI-assisted shopping and checkout experiences.
Mastercard’s Price Performance, Valuation & EstimatesOver the past year, MA’s shares have dropped 6.9% compared with the industry’s fall of 19.2%.
Image Source: Zacks Investment Research
From a valuation standpoint, MA trades at a forward price-to-earnings ratio of 23.87, above the industry average of 17.28. MA carries a Value Score of C.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Mastercard’s 2026 earnings implies 15.2% growth from the year-ago period.
Image Source: Zacks Investment Research
Mastercard currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Visa se spojuje s Mintoak, aby v Asii a Tichomoří posílila merchant služby pro banky a acquirery. Platforma má malým a středním firmám nabídnout přijímání plateb, reporting i servisní nástroje.
Key Takeaways Visa is partnering with Mintoak to strengthen merchant services for acquirers across the Asia Pacific.Mintoak's SaaS platform helps banks offer payment acceptance, insights, reporting and service tools.The partnership targets SMEs, aiming to expand digital payment acceptance in underpenetrated markets. Visa Inc. (V - Free Report) is strengthening its merchant services ecosystem through a new partnership with cloud-native merchant software platform, Mintoak. The collaboration is aimed at helping acquirers across the Asia Pacific enhance their merchant offerings and deliver a more seamless digital experience beyond traditional payment acceptance.
The partnership combines V's payments network, data capabilities and industry expertise with Mintoak's API-led SaaS platform. This will allow banks and financial institutions to provide merchants with integrated tools spanning payment acceptance, business insights, reporting and service management through a unified interface. This integrated approach could help banks and financial institutions improve merchant onboarding, streamline servicing and build stronger long-term relationships with business customers.
The initiative also aligns with Visa's goal of expanding digital payment acceptance among small and medium-sized businesses, a segment that remains significantly underpenetrated in many Asia-Pacific markets. By offering scalable and easy-to-deploy solutions, the platform can help SMEs adopt digital payments more efficiently while supporting their operational and growth objectives. Greater acceptance density and higher transaction activity could benefit the broader payments ecosystem over time.
Beyond payment processing, the partnership also opens the door to a broader range of value-added services. Analytics, merchant engagement tools, integrated banking solutions and data-driven insights can help acquirers generate new revenue streams while strengthening relationships with merchants.
For V, expanding access to such services could support long-term growth and reinforce its position in the evolving payments landscape. Wider merchant adoption and increased usage of these services could also drive higher payment volumes and create additional revenue opportunities over time.
How Are Competitors Faring?Some of V’s competitors in the value-added services include Mastercard Incorporated (MA - Free Report) and American Express Company (AXP - Free Report) .
Mastercard has been expanding beyond its core card network by offering merchants a wider suite of digital solutions, including analytics, cybersecurity, loyalty programs and open-banking services. MA is increasingly focused on value-added services, which not only strengthen merchant engagement but also provide a growing source of higher-margin revenue.
American Express leverages its closed-loop network to deliver targeted merchant solutions, customer insights and marketing capabilities. By helping merchants attract and retain high-spending cardholders, AXP deepens business relationships while generating incremental revenue opportunities through value-added services that extend beyond traditional payment processing.
Visa’s Price Performance, Valuation & EstimatesOver the past year, shares of Visa have dropped 2.1% compared with the industry’s 21.1% fall.
Image Source: Zacks Investment Research
From a valuation standpoint, V trades at a forward price-to-earnings ratio of 23.27, above the industry average of 16.89. V carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Visa’s fiscal 2026 earnings implies a 14.1% jump from the year-ago period.
Image Source: Zacks Investment Research
Visa stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Visa spustila v SAE s Mashreq a Rezolve AI program Everyday Cashback s AI odměnami pro držitele karet. Cílem je zvýšit používání karet a posílit zapojení obchodníků i bank.
Key Takeaways Visa launched an AI-driven cashback program in the UAE with Mashreq and Rezolve AI.V is using rewards, data and AI to boost card usage and deepen issuer and merchant engagement.Data processing revenues rose 17% in Q1 2026, supporting Visa's value-added services strategy. Visa Inc. (V - Free Report) is partnering with Mashreq and Rezolve AI to launch "Everyday Cashback" in the UAE. Powered by Rezolve's Reward platform, the digital-first Card Linked Offers (“CLO”) program delivers personalized, AI-driven rewards to credit and debit cardholders. The offering gives consumers tailored cashback incentives while helping merchants reach shoppers through targeted promotions.
While the launch is unlikely to materially affect Visa's near-term financial results, it highlights the company's broader strategy to strengthen its payments ecosystem. Beyond processing transactions, Visa is increasingly embedding value-added services into everyday payments. Programs like CLO can boost card usage, deepen customer engagement and create additional value for banks and merchants.
The initiative aligns with trends seen in Visa's first-quarter fiscal 2026 results, which showed continued growth in value-added services, commercial solutions and cross-border volumes. Expanding engagement-driven offerings in fast-growing digital payment markets like the UAE can help Visa reinforce issuer relationships and keep more payment activity on its network.
The rollout is less about immediate revenues and more about strategic execution. It demonstrates how Visa is leveraging data, AI and rewards programs to drive transaction activity and deepen ecosystem participation. The approach could also help offset rising client incentives by supporting higher-margin revenue streams. Data processing revenues rose 17% year over year in the first quarter of 2026. While the Mashreq partnership alone will not move the needle, consistent execution of similar initiatives can strengthen Visa's competitive position and support long-term earnings growth.
How Are Competitors Faring?Industry peers like Mastercard Incorporated (MA - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report) are deploying their own AI-driven networks to capture value beyond basic payment processing.
Mastercard is aiming squarely at the machine-to-machine economy. MA recently expanded its AI capabilities via Agent Pay for Machines, a specialized infrastructure enabling AI agents and connected devices to securely authorize, orchestrate, and settle transactions autonomously.
PayPal is advancing its Agentic Commerce initiative, enabling AI agents to discover products and complete purchases on behalf of consumers. Through these efforts, PYPL is embedding its payment services into next-generation shopping experiences.
Visa’s Price Performance, Valuation & EstimatesOver the past year, shares of Visa have lost 7.2% compared with the industry’s 23.8% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, V trades at a forward price-to-earnings ratio of 22.77, above the industry average of 16.89. V carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Visa’s fiscal 2026 earnings implies a 14.1% jump from the year-ago period’s level.
Image Source: Zacks Investment Research
Visa stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bank of America využívá AI k rozšíření veřejného financování a k udržení vedení v municipálních dluhopisech. Letos už zprostředkovala více než 46 miliard USD v dlouhodobých emisích státního a místního dluhu.
Bank of America BAC is turning to artificial intelligence to widen its reach in public finance underwriting, as Matthew McQueen, who oversees the bank's public finance department, sees AI helping the firm respond to more requests for proposals from US states and cities.
The bank has already managed more than $46 billion in long-term state and local debt sales so far this year, according to Bloomberg-compiled data. McQueen suggested AI could possibly expand Bank of America's coverage model without requiring more hiring, potentially helping the firm reinforce its lead in municipal bond underwriting.
AI-driven data center construction could also create more financing opportunities, especially in power and prepaid energy bonds. McQueen said the data center buildout is tightening labor supply and pushing up costs for other infrastructure projects, which could put pressure on issuance. Bank of America is looking to become more active in prepaid energy deals after the sector saw its first transaction tied to Alphabet earlier this month.
Společnost Walmart koupí Vibe.co a rozšíří tak Walmart Connect o samoobslužnou platformu pro reklamu v CTV. Cílem je zpřístupnit a lépe měřit CTV kampaně pro malé a střední inzerenty.
Acquisition brings Vibe.co’s self-serve, connected TV advertising platform into Walmart Connect’s commerce media platform, making TV advertising more accessible and measurable for small and mid-sized businesses (SMB) and mid-market advertisers.
BENTONVILLE, Ark. & NEW YORK--(BUSINESS WIRE)--Walmart and Vibe.co today announced they have entered into an agreement under which Walmart will acquire Vibe.co, a self-serve, connected TV (CTV) advertising platform designed to simplify advertising for small and mid-sized businesses (SMB) and mid-market brands. The transaction is subject to customary closing conditions, including the expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. Terms of the transaction were not disclosed.
The acquisition advances Walmart’s strategy to build more accessible, full-funnel advertising solutions through Walmart Connect, its commerce media business. By combining Vibe.co’s self-serve CTV platform with Walmart’s commerce audiences, closed-loop measurement and growing media ecosystem, including VIZIO, Walmart Connect aims to help more advertisers launch CTV campaigns and better measure their business impact.
“Walmart Connect is focused on making commerce media more accessible, more measurable and easier to activate for advertisers of all sizes,” said Ryan Mayward, GM and Senior Vice President, Walmart Connect U.S. “Vibe.co has created a purpose-built platform that simplifies streaming TV advertising, and together, we can help more businesses connect with customers across streaming environments while measuring the impact of those campaigns through Walmart’s commerce capabilities.”
Vibe.co’s platform offers self-serve campaign activation, direct supply partner integrations, proprietary advertising technology and performance-driven optimization that helps advertisers access premium connected TV inventory more efficiently. The combination is expected to support broader adoption of the CTV ad media among advertisers across Walmart Connect, and the broader connected TV ecosystem, particularly among SMB and mid-market advertisers, including Walmart’s third-party marketplace sellers. The platform can deliver easier campaign activation, greater transparency and stronger measurement between media investment and commerce outcomes.
“Vibe.co was built as the self-serve platform for performance and ecommerce marketers to run streaming TV the way they run paid social: measurable, fast to launch, and optimized for better outcomes,” said Arthur Querou, Co-Founder and CEO, Vibe.co. “Joining Walmart gives us the opportunity to accelerate that mission and bring performance TV advertising to one of the most powerful commerce media ecosystems in the market.”
Advertisers continue to navigate a fragmented media landscape where CTV can deliver reach and impact but often remains complex and costly to buy. Walmart Connect and Vibe.co aim to reduce friction across planning, targeting, ad content creation, activation, measurement and optimization, making CTV more accessible to advertisers without large media teams or specialized resources.
This transaction builds on Walmart Connect’s existing solutions and continued investments to make commerce media easier to access and manage, including recent partnerships with Magnite, Yahoo DSP, and Google DV360. Combined with Walmart’s acquisition of VIZIO, Vibe.co strengthens Walmart Connect’s ability to deliver simplified activation, enhanced targeting and measurable outcomes across its growing CTV ecosystem.
Walmart Connect and Vibe.co remain committed to operating within an open and collaborative advertising ecosystem, working with broadcasters, publishers, supply-side platforms (SSPs), measurement providers and technology partners across the industry. Existing partner relationships remain an important part of Walmart Connect’s advertising strategy. The acquisition is intended to expand advertiser choice and accessibility, not limit how advertisers or partners engage with Walmart Connect’s media ecosystem.
Following the close of the transaction, Vibe.co CEO and Co-Founder Arthur Querou, CTO and Co-Founder Franck Tetzlaff, and the broader Vibe.co team are expected to join Walmart Connect to help maintain business momentum, support a seamless integration and continue serving Vibe’s advertisers, publishers and technology partners. Their expertise in connected TV, self-serve activation and performance advertising will serve as valuable additions to the Walmart team.
The parties expect the transaction to close by the end of fiscal year 2027. Walmart does not expect the transaction to have any impact to FY27 sales and operating income growth guidance, as previously provided.
About Walmart
Walmart Inc. (Nasdaq: WMT) is a people-led, tech-powered omnichannel retailer helping people save money and live better - anytime and anywhere - in stores, online, and through their mobile devices. Each week, approximately 280 million customers and members visit more than 10,900 stores and numerous eCommerce websites in 19 countries. With fiscal year 2026 revenue of $713 billion, Walmart employs approximately 2.1 million associates worldwide. Walmart continues to be a leader in sustainability, corporate philanthropy, and employment opportunity. Additional information about Walmart can be found by visiting corporate.walmart.com, on Facebook at facebook.com/walmart, on X (formerly known as Twitter) at twitter.com/walmart, and on LinkedIn at linkedin.com/company/walmart.
About Vibe.co
Vibe.co is a self-serve, connected TV advertising platform designed to make streaming TV advertising more accessible, efficient and performance-driven for ecommerce brands, growth-stage businesses and SMBs. With more than 10,000 advertisers, advanced targeting, AI optimization and measurement capabilities, Vibe.co makes streaming TV advertising as accessible and accountable as digital.
Walmart uzavřel se společností Constellation Energy dlouhodobou smlouvu na dodávky jaderné elektřiny pro své dříve oznámené „high-tech“ distribuční centrum pro rychle se kazící zboží v Belvidere v Illinois. Firma bude odebírat zhruba 176 megawattů v rámci dvou 15letých kontraktů od let 2029 a 2030.
A Walmart store is shown in Oceanside, California, U.S., May 15, 2025. REUTERS/Mike Blake Purchase Licensing Rights, opens new tab
CompaniesJune 23 (Reuters) - Retail bellwether Walmart (WMT.O), opens new tab has signed a long-term nuclear power purchase agreement with Constellation Energy (CEG.O), opens new tab, the companies said on Tuesday.
Under the agreement, Constellation Energy will supply nuclear power from its Dresden Clean Energy Center in Illinois to Walmart's previously announced "high-tech" perishable distribution center, currently in development in Belvidere, Illinois.
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Walmart will buy about 176 megawatts of electricity, including 30 megawatts of additional output from planned upgrades, under two 15-year contracts starting in 2029 and 2030.
The agreement is among the first between a major U.S. retailer and a nuclear energy provider and underscores growing corporate interest in baseload clean power, which can provide electricity around the clock.
The deal would support investment in efficiency upgrades, or uprates, at the Dresden Clean Energy Center, allowing the plant to increase output without building new generation capacity.
Dresden, one of Constellation's largest nuclear plants, is licensed to operate through 2049 and 2051.
Reporting by Varun Sahay in Bengaluru; Editing by Tasim Zahid
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Walmart spustil celostátní iniciativu, která má příjemcům Medicare pomoci lépe pochopit krytí léků na předpis. Program nabízí konzultace s lékárníky, digitální nástroje a napojení na zdravotní zdroje.
Key Takeaways Walmart launched a nationwide effort to help Medicare users understand prescription drug coverage.The program offers pharmacist consultations, digital tools and links to healthcare resources. Walmart's pharmacy scale and health focus could drive engagement and loyalty over time. Walmart Inc. (WMT - Free Report) and Sam’s Club have launched a nationwide initiative to help Medicare beneficiaries better understand prescription drug coverage options for weight management and other chronic conditions. While the program is primarily educational, it could strengthen Walmart’s healthcare presence by increasing pharmacy engagement and deepening customer loyalty while potentially supporting prescription volumes over time.
The initiative will provide educational materials, pharmacist consultations, digital navigation tools and assistance connecting customers with healthcare resources. With nearly 5,000 pharmacy locations, including stores in rural and underserved communities, Walmart is well-positioned to help seniors navigate evolving Medicare coverage requirements.
The move aligns with Walmart’s broader focus on weight management and chronic care. The company has been expanding support for customers using or exploring GLP-1 therapies through its Better Care Services platform, complemented by nutrition resources, wellness products and pharmacy services.
Walmart’s first-quarter fiscal 2027 earnings call highlighted the growing importance of its health and wellness business. The company reported continued prescription volume growth, pharmacy market share gains, investments in digital healthcare capabilities and faster pharmacy delivery options, underscoring its efforts to improve healthcare accessibility and convenience.
While the initiative is not expected to have a significant impact on earnings in the near term, it could benefit Walmart over time by bringing more customers to its pharmacies, creating opportunities for additional health and wellness purchases and strengthening its reputation as a trusted healthcare destination. Overall, the move fits Walmart’s strategy of leveraging its physical scale, digital tools and pharmacy network to build stronger customer relationships beyond traditional retail.
WMT Stock Price Performance, Valuation & EstimatesWalmart currently carries a Zacks Rank #3 (Hold). Shares of the company have risen 19.6% over the past year compared with the industry’s growth of 16.7%.
WMT Price Performance Versus Industry
Image Source: Zacks Investment Research
From a valuation standpoint, WMT trades at a forward price-to-earnings ratio of 38.6, higher than the industry’s average of 35.02.
WMT Valuation Compared to Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for WMT’s current and next fiscal-year earnings per share implies year-over-year growth of 9.5% and 13.3%, respectively.
Stocks to ConsiderRoss Stores, Inc. (ROST - Free Report) , a leading U.S. off-price retailer operating Ross Dress for Less and dd's DISCOUNTS stores, sports a Zacks Rank #1 (Strong Buy) at present. ROST delivered a trailing four-quarter earnings surprise of 10.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.
The consensus estimate for Ross Stores’ current fiscal-year sales and earnings suggests growth of 9.1% and 17.1%, respectively, from the year-ago figures.
Dollar Tree, Inc. (DLTR - Free Report) , a leading discount retailer, currently carries a Zacks Rank #2 (Buy). DLTR delivered a trailing four-quarter earnings surprise of 32.1%, on average.
The Zacks Consensus Estimate for Dollar Tree’s current fiscal-year sales and earnings implies growth of 6.5% and 21.4%, respectively, from the year-ago figures.
The TJX Companies, Inc. (TJX - Free Report) , a major off-price apparel and home fashions retailer, currently carries a Zacks Rank #2.
The Zacks Consensus Estimate for The TJX Companies’ current fiscal-year sales calls for growth of 5.9%, and estimates for earnings suggest a 9.3% increase from the year-ago figure. TJX delivered a trailing four-quarter earnings surprise of 8.8%, on average.
JPMorgan chce do konce roku 2030 provozovat Chase alespoň v pěti evropských zemích. V Británii už má přes 3 miliony klientů a zhruba 30 miliard GBP v depozitech.
Key Takeaways JPMorgan aims to operate Chase in at least five European countries by the end of 2030.Chase has gained more than 3 million U.K. customers and roughly 30 billion pounds in deposits.JPMorgan sees Europe as a long-term retail banking investment, not an immediate earnings driver. JPMorgan (JPM - Free Report) is planning to deepen Chase’s presence in Europe, marking a major step in its international retail banking strategy. The U.S. banking giant wants its digital bank to operate in at least five European countries by the end of 2030. Building on its current presence in the U.K. and Germany, the company is reportedly considering expansion into additional European markets, including France, Spain and Italy.
The move signals JPMorgan’s intent to build a scalable consumer banking platform outside its dominant U.S. base. Chase entered the U.K. in 2021 and has since gained strong traction (more than 3 million customers and roughly £30 billion in deposits), helped by competitive savings rates, cashback benefits and brand recognition. Its German launch (May 2026) has opened the door to continental Europe, where a common regulatory and technology framework may make future rollouts easier than the initial U.K.-to-EU transition.
For JPMorgan, the opportunity lies in gathering low-cost deposits, expanding customer relationships and cross-selling products such as cards, insurance, lending and wealth solutions over time. A broader European footprint will also diversify consumer banking revenues and support long-term growth.
However, the strategy is unlikely to deliver quick profits. Europe’s retail banking market is fragmented, heavily regulated and dominated by entrenched local banks. Digital players such as Revolut, Monzo and N26 have already intensified competition for younger and rate-sensitive customers. JPMorgan will have to keep spending heavily on technology, marketing and customer incentives to gain scale.
Overall, the expansion underscores JPMorgan’s confidence in its brand, balance sheet and digital capabilities. Still, the move must be viewed as a long-term retail banking investment rather than an immediate earnings driver.
How Do JPM’s Peers Fare in Terms of Branch Expansion Plans?JPMorgan’s two close peers are Bank of America (BAC - Free Report) and Citigroup (C - Free Report) .
Bank of America continues to show that branches remain relevant in an AI-driven banking era. As of March 31, 2026, Bank of America operated 3,540 financial centers and 14,902 ATMs, while advancing plans to open 150-plus centers across 60 markets by 2027.
Citigroup plans to renovate much of its 650-branch U.S. network and selectively open new locations by 2028. This will reshape Citigroup’s physical footprint around wealth management and advisory services rather than routine retail transactions.
JPMorgan’s Price Performance, Valuation and EstimatesJPM’s shares have gained 5.8% over the past six months.
Image Source: Zacks Investment Research
From a valuation standpoint, JPMorgan trades at a 12-month trailing price-to-tangible book (P/TB) of 3.22X, slightly below the industry average.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for JPMorgan's 2026 earnings indicates a 10.3% year-over-year rise, while 2027 earnings are expected to grow at a rate of 5.4%. Over the past month, earnings estimates for 2026 have moved lower to $22.40, while those for 2027 have moved higher to $23.60.
Image Source: Zacks Investment Research
JPMorgan currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
JPMorgan Chase zablokovala zaměstnancům v Hongkongu přístup k modelům Claude od společnosti Anthropic. Krok přichází po podobném omezení ze strany Goldman Sachs a ukazuje rostoucí dohled nad AI mimo USA.
Anthropic logo, a keyboard and a robotic hand in this illustration created on June 5, 2026. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
June 18 (Reuters) - JPMorgan Chase (JPM.N), opens new tab has stopped its staff in Hong Kong from accessing Anthropic's AI models, in a sign of intense scrutiny on the technology's use outside the U.S., the Financial Times reported on Thursday, citing three people familiar with the matter.
The wording of Anthropic's usage terms in its licensing agreement with JPMorgan prompted the bank to remove Claude models from an internal drop-down list of approved large language models available to employees in the Asian financial hub, the report said.
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The move follows a similar decision by Goldman Sachs (GS.N), opens new tab, which in April removed Claude from a list of approved tools available to its Hong Kong-based bankers.
JPMorgan and Anthropic did not respond to Reuters' requests for comment outside business hours. Reuters could not immediately verify the report.
The restrictions by the two Wall Street banks come amid rising U.S.-China tensions over AI technology, data security and access to advanced computing tools.
While AI models built by U.S. firms are not available in mainland China, Hong Kong has largely remained a market where some models operate, with usage limits set by U.S. companies.
Earlier this week, U.S. Commerce Secretary Howard Lutnick, in a letter to Anthropic CEO Dario Amodei, ordered the company to suspend exports of its Mythos and Fable AI models to destinations worldwide and all foreign nationals, citing concerns they could be used by military intelligence users in China, Russia and other countries of concern.
U.S. President Donald Trump said on Wednesday that negotiations with Anthropic are "going fine."
Reporting by Devika Nair in Bengaluru; Editing by Sonia Cheema and Harikrishnan Nair
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Ministerstvo spravedlnosti USA prověřuje transakce spojené s byznysovou sítí napojenou na íránského nejvyššího vůdce Mojtabu Khameneiho. Podle Bloombergu se v nich objevily i JPMorgan Chase a Citigroup.
Investigators are examining a global investment empire tied to Tehran's leadership The Department of Justice is investigating transactions tied to a business network linked to Iranian Supreme Leader Mojtaba Khamenei that reportedly had exposure to major U.S. financial institutions, according to a Bloomberg News report.
Bloomberg reported federal investigators are examining how companies connected to Khamenei built a global investment portfolio with transactions involving Wall Street firms including JPMorgan Chase and Citigroup.
The reported probe is part of a broader Justice Department investigation into alleged money laundering and corruption involving entities tied to Khamenei, according to Bloomberg, which cited people familiar with the matter.
DOJ CLEARS PARAMOUNT-WARNER BROS MERGER AFTER 8-MONTH ANTITRUST PROBE, SAYS DEAL COULD BOOST COMPETITION
JPMorgan Chase headquarters in New York City. Federal investigators are reportedly reviewing transactions tied to a business network linked to Iran's supreme leader that involved major U.S. financial institutions. (Photo by Tim Clayton/Corbis via Getty Images / Getty Images)
JPMorgan Chase, Citigroup and the Department of Justice did not immediately respond to FOX Business' requests for comment.
Investigators are reviewing the role U.S. financial institutions may have played in processing or facilitating transactions linked to the network, though Bloomberg reported the investigation does not necessarily mean charges will be filed.
The reported inquiry comes as the Trump administration has intensified pressure on Iran and sought to crack down on sanctions evasion and illicit financial activity tied to Tehran and its leadership.
JPMORGAN CHASE LAUNCHES AMERICAN DREAM INITIATIVE TO EXPAND SMALL BUSINESS SUPPORT ACROSS THE US
Citigroup headquarters in New York City. The bank was named in a report on a Justice Department investigation examining transactions linked to a business network tied to Iran's supreme leader. (Victor J. Blue/Bloomberg / Getty Images)
The investigation could place renewed scrutiny on how major financial institutions identify and monitor potentially sanctioned entities operating through complex international ownership structures and investment vehicles, a longstanding challenge for global banks and regulators.
Bloomberg reported that investigators' primary focus is Khamenei and the network of businesses tied to him rather than the banks themselves.
Ticker Security Last Change Change % JPM JPMORGAN CHASE & CO. 331.57 -2.57 -0.77% C CITIGROUP INC. 144.52 -0.54 -0.37% GET FOX BUSINESS ON THE GO BY CLICKING HERE
Khamenei became Iran's supreme leader after his father, Ayatollah Ali Khamenei, was killed in a joint U.S.-Israeli airstrike. As Iran's highest-ranking authority, he has final say over major state decisions, including foreign policy and the country's nuclear program.
The reported investigation comes amid heightened tensions between Washington and Tehran as the administration continues to increase economic and diplomatic pressure on the Iranian regime.
JPMorgan vykázal rekordní čtvrtletní čistý zisk 16,5 miliardy USD a EPS 5,94 USD, zatímco výnosy dosáhly 49,836 miliardy USD. Jamie Dimon zároveň varoval, že další úvěrový cyklus může přinést horší ztráty, než trh čeká.
JPMorgan Chase (NYSE:JPM | JPM Price Prediction) reported Q1 2026 net income of $16.5 billion, with EPS of $5.94, up 17% from a year earlier. Revenue hit $49.836 billion. Markets revenue set a record at $11.6 billion, up 20% year over year. Investment banking fees jumped 28%, with advisory fees up 82%. The stock has climbed 26% over the past year.
The Cockroach Quote CEO Jamie Dimon delivered the defining line: “When there’s a credit cycle, losses will be worse than people expect. I shouldn’t say this, but when you see one cockroach, there’s probably more.”
He elaborated on the mechanics. “A credit cycle will occur eventually, and I believe when it does, the losses will be worse than anticipated,” Dimon said, while declining to call a recession. “However, I don’t see it as systemic given the scale relative to other things.”
The historical pattern worries him. “Typically, there’s always an industry that surprises observers. For instance, in 2000, utilities and telecoms caught people off guard, while in 2008, it was media firms and newspapers. This time, there’s speculation surrounding software, but we’ll have to wait and see,” Dimon told analysts.
What He’s Watching Dimon flagged stagflation and refinancing risk as pressure points. “If stagflation occurs, along with prolonged higher interest rates and widening credit spreads, it will create significant stress for companies with leverage as they refinance,” he said. He sized the leveraged finance ecosystem at roughly $1.7 trillion in private credit, $1.7 trillion in high-yield bonds, and $1.7 trillion in bank syndicated leveraged loans.
JPMorgan is leaning into discipline rather than growth. “If our loan book were to decrease by 10% next year, we would be perfectly fine with that if it meant avoiding irresponsible loans,” Dimon said. The bank is sitting on $291 billion in CET1 capital, $572 billion in total loss-absorbing capacity, and $1.5 trillion in cash and marketable securities.
The Tension The consumer still looks fine on the surface. CFO Jeremy Barnum said “consumers and small businesses remain resilient with consumer spending growth continuing above last year’s pace.” Card net charge-offs ran at 3%, and the provision for credit losses fell to $2.51 billion, down 24% year over year.
Yet nonperforming exposure climbed 11% YoY to $11.0 billion, and nonaccrual loans in Asset & Wealth Management rose 53%. Bank of America (NYSE:BAC) CEO Brian Moynihan called it “a resilient American economy” with stable asset quality.
Dimon’s framing was unambiguous. “If a credit cycle occurs, it may be more severe than anticipated given the circumstances,” he said. “Asset prices will decline, and credit spreads will narrow.” Record quarter, record warning. Investors decide which signal to weigh more.
Johnson & Johnson ve 1. čtvrtletí zvýšila tržby o 9,9 % na 24,062 miliardy USD a upravený EPS 2,70 USD překonal odhady už počtvrté v řadě. Firma zároveň zvýšila výhled na rok 2026.
Our Johnson & Johnson (NYSE:JNJ | JNJ Price Prediction) 24/7 Wall St. price target lands at $261.72, pointing to 11.28% upside from the current price of $235.18. Our recommendation is buy, and our model carries a 90% confidence level. JNJ has quietly become one of healthcare’s most reliable compounders again, with oncology firing and dividend support intact.
Metric Value Current Price $235.18 24/7 Wall St. Price Target $261.72 Upside 11.28% Recommendation BUY Confidence Level 90% A Quiet Rally Into New Highs JNJ has run hard. Shares are up 14.91% year to date and 55.3% over the past year, currently trading about 1% below the 52-week high of $250.24. The latest Q1 2026 earnings report backed the move. Revenue rose 9.9% to $24.062 billion, and adjusted EPS of $2.70 beat estimates for the fourth consecutive quarter.
Management raised 2026 guidance to $100.3B to $101.3B in sales and $11.45 to $11.65 in adjusted EPS. Recent catalysts include a $1 billion Vision manufacturing expansion in Jacksonville, the $1 billion Firefly Bio acquisition adding a degrader-antibody-conjugate platform, and a Talvey late-stage trial showing up to 53% mortality risk reduction in multiple myeloma.
Why Bulls See a Breakout Toward $275 The bull case rests on oncology and immunology firing simultaneously. DARZALEX hit $3.964 billion (+22.5%), TREMFYA reached $1.608 billion (+68.3%), CARVYKTI grew 62.1%, and RYBREVANT/LAZCLUZE jumped 82.7%. Cardiovascular MedTech grew 13.0% on Abiomed and Shockwave.
The analyst consensus target of $252.87 sits between our base and our bull case of $273.48 over the next year. If the DePuy Synthes orthopaedics spin lifts the remaining mix toward double-digit growth, the multiple can expand from the current forward P/E of 20x.
The Risks Worth Watching The bear case is real. STELARA fell 59.7% in Q1 on biosimilars, dragging Innovative Medicine by roughly 920 basis points. Litigation charges of $330 million in Q1 followed $854 million in Q4 2025, and talc cases remain an overhang.
Our bear scenario lands at $222.46, a 5.41% drawdown. That said, bulls would argue the headline net income decline of 52.4% reflects those non-recurring legal charges rather than underlying operating performance, where adjusted EPS still grew and guidance was raised.
Our Take on JNJ Here The 24/7 Wall St. price target of $261.72 and buy rating reflect a balanced setup: defensive characteristics, accelerating top-line growth, and a pipeline that should outrun the STELARA cliff. The setup favors investors seeking healthcare exposure with a 0.26 beta and a 64-year dividend growth streak.
The case weakens if talc litigation reserves expand materially or if the orthopaedics separation slips beyond the 18 to 24 month window. Our 90% confidence is high for a reason: this is a low-volatility blue chip with a clear growth narrative.
JNJ Price Prediction 2026-2030 Looking further out, here is where our model projects Johnson & Johnson could trade, assuming current growth trajectories and the planned orthopaedics separation execute on schedule.
Year 24/7 Wall St. Price Target 2026 $248.24 2027 $273.86 2028 $294.53 2029 $315.88 2030 $333.63 These projections assume JNJ continues executing on oncology and cardiovascular MedTech. Significant upside or downside could result from talc litigation outcomes or the pace of double-digit growth promised by end of decade.
Disney má podle 24/7 Wall St. cílovou cenu 110,07 USD, protože růst ziskovosti a marže ze streamingu zrychlují. Upravený EPS za 2. čtvrtletí činil 1,57 USD a tržby dosáhly 25,168 miliardy USD.
Disney (NYSE:DIS | DIS Price Prediction) has spent 2026 grinding sideways while the underlying business quietly accelerates. Shares are down 10.98% year to date, yet streaming margins just crossed double digits and FY26 EPS growth is guided at roughly 16%. That disconnect is the entire setup for our call.
Our 24/7 Wall St. price target for Disney is $110.07, implying 8.68% upside from $101.28. We rate Disney a buy with high confidence.
24/7 Wall St. Price Target Summary Metric Value Current Price $101.28 24/7 Wall St. Price Target $110.07 Upside 8.68% Recommendation BUY Confidence Level 90% A Streaming Inflection Hiding Behind a Sideways Tape Disney is down 14.3% over the past year and up 1.96% over the past week, with a 14-day RSI of 49.03 that reads as neutral. The stock sits between a 52-week low of $92.19 and a high of $123.85.
The May 6 earnings report told a much better story than the tape. Q2 FY26 adjusted EPS came in at $1.57 versus $1.4955 expected, on revenue of $25.168 billion, up 6.55% year over year. Operating income jumped 31.29%, Entertainment SVOD operating income surged 88% to $582M, and the Experiences segment posted record Q2 revenue of $9.487 billion. Management raised the buyback target to at least $8 billion.
The Case for $120+ The bull thesis hinges on streaming. Entertainment SVOD just hit a 10.6% operating margin, with 196M combined Disney+ and Hulu subscribers. Add the ESPN DTC launch, the NFL Network acquisition, and double-digit FY27 EPS growth guidance, and the operating leverage story is real.
Experiences keep printing records, helped by recreation spending of $864.2 billion in April 2026, a fresh high. The $129.67 analyst target, backed by 27 Buy ratings versus 1 Sell, is the bull scenario. Hit FY27 EPS estimates with a 19x multiple and Disney trades north of $120.
What Could Go Wrong Q1 FY26 free cash flow swung to negative $2.278 billion on California wildfire tax payments, and Q3 Sports operating income is guided down roughly 14% on higher programming costs. The NFL deal is $0.03 dilutive to FY26 EPS, and Polymarket traders give Disney+ only a 28% chance of reaching 150M users by September.
Bulls would counter that the Q1 cash flow hole reflected tax timing rather than operational weakness, and that Q2’s $4.941 billion in free cash flow shows the underlying engine is intact. A bear scenario clipping the multiple to 14x forward earnings drags the stock toward $88.
Disney Price Prediction 2026-2030 The 24/7 Wall St. price target of $110.07 is a buy with 90% confidence. The tipping factor is the SVOD margin breakout combined with a forward P/E of just 14x on a name guided to 12% to 16% EPS growth. The setup favors investors who believe streaming margins keep expanding into FY27. Investors who think Sports rights inflation eats the entire DTC win may want to wait for further evidence.
Year 24/7 Wall St. Price Target 2026 $110 2027 $122 2028 $135 2029 $148 2030 $162 These projections assume Disney executes on the double-digit EPS growth path guided for FY26 and FY27. Material upside or downside hinges on streaming margin trajectory, NFL economics, and the pace of Experiences expansion in Asia and the Middle East.
Disney má ve třetím fiskálním čtvrtletí vykázat mírné zlepšení návštěvnosti domácích zábavních parků. Bank of America čeká podporu i od silné sledovanosti finále NBA a potvrzuje cílovou cenu 125 USD.
Walt Disney Co (NYSE:DIS, XETRA:WDP) is expected to report modestly improving attendance trends at its domestic theme parks in its fiscal third quarter, Bank of America analysts have projected ahead of the entertainment giant’s upcoming report.
The bank’s analysts wrote that Disney's Experiences segment likely benefited from a slight improvement in US attendance compared with the fiscal second quarter, despite broader industry commentary pointing to mixed demand trends at theme parks.
The analysts also noted that lower fuel prices could provide an additional boost to consumer spending through the summer months.
Bank of America noted that gains from stronger attendance are expected to be partially offset by costs associated with cruise ship dry docks, though comparisons should also benefit from lower pre-opening expenses than a year earlier.
Within Disney's Sports business, the bank wrote that strong viewership for the NBA Finals likely supported results, but shorter playoff series and the blackout of NFL Network programming on some distributors may have weighed on performance.
In the studio segment, analysts said Star Wars: The Mandalorian and Grogu performed below expectations.
Bank of America also highlighted Disney's progress in its direct-to-consumer streaming business, noting that the company has expanded margins in recent years and remains on track to achieve double-digit subscription video-on-demand margins in fiscal 2026. However, the bank expects Disney to continue investing in growth initiatives, particularly international content production, which could support subscriber and revenue growth while moderating the pace of future margin expansion.
The firm maintained its fiscal third-quarter estimates for Disney, projecting revenue of $25.38 billion, operating income of $5.30 billion and earnings per share of $1.87.
It also left unchanged its fiscal 2026 earnings forecast of $6.88 per share.
Bank of America reiterated its ‘Buy’ rating on Disney shares and a price target of $125, above current levels of about $102, citing expected growth in streaming profitability, a recovery in parks attendance, long-term opportunities in sports, and the company's management team.
The company will report its Q3 earnings on August 5.
Toy Story 5 od Disney o víkendu celosvětově utržil 312 milionů USD a zaznamenal největší filmový debut roku 2026 i nejlepší start v historii série. Akcie DIS přesto po předchozím růstu jen mírně klesají.
Walt Disney DIS shares are slightly down following a recent surge, despite impressive weekend box-office results for Toy Story 5, which earned $312 million globally. This debut marks the largest movie opening of 2026 and the best launch in the franchise's history, bolstering the case for DIS's intellectual property (IP) strategy. However, the absence of a new operating update has led to a period of consolidation for the stock.
Franchise Engine: Toy Story 5's success extends beyond box-office numbers. DIS can leverage its franchises across various platforms including theatrical releases, Disney+, consumer products, theme parks, and digital experiences, highlighting the unique earnings potential of its character portfolio. Muted Stock Reaction: Following DIS's recent stock performance, investors may have already factored in expectations for a stronger content lineup. They are now looking for concrete evidence that franchise momentum will enhance streaming engagement, boost consumer product sales, and accelerate overall earnings. Streaming Quality: In Q2, reported on May 6, DIS saw a 13% increase in Entertainment SVOD revenue, with operating income soaring 88% to $582 million. The SVOD margin reached 10.6%, indicating that streaming is becoming more profitable. Additionally, SVOD advertising revenue grew by 12%, providing another monetization avenue. Experiences Resilience: Disney Experiences revenue rose 7% in Q2, with segment operating income increasing by 5%, both achieving record highs for the fiscal quarter. However, domestic attendance dipped by 1%, and pre-opening costs impacted profit margins. Investors are also monitoring potential pressures from Universal’s Epic Universe in Orlando. Parks Outlook: Management indicated that international visitor challenges and Epic Universe-related issues are expected to lessen. Meanwhile, Disney World bookings remain robust, and domestic attendance is anticipated to improve in Q3 compared to Q2. Sports and Capital Return: Last quarter, DIS raised its FY26 adjusted EPS growth forecast to around 16%, including an additional week, and reaffirmed double-digit growth for FY27. However, Q3 sports operating income may decline by about 14% year-over-year due to programming costs and timing. At least $8 billion in buybacks for FY26 is also planned to support shareholder returns.The recent success of Toy Story 5 serves as a testament to DIS's franchise strategy. The company's narrative is not solely based on theatrical performance but also on its capability to transform major IP into streaming engagement, merchandise sales, and long-term consumer connections. The stock's subdued movement is understandable given its recent performance, as the box-office news alone does not alter the short-term outlook. Future indicators will focus on DIS's ability to maintain double-digit streaming revenue growth with sustainable margins, stabilize domestic park attendance amid Epic Universe competition, and keep ESPN profitable in the face of rising sports rights costs. If these elements align, DIS could see a more resilient earnings recovery beyond just hit-driven content rebounds.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Target po silném 1. čtvrtletí zvýšil výhled tržeb na fiskální rok 2026 na přibližně 4 % z dřívějších zhruba 2 %. Upravený zisk na akcii dosáhl 1,71 USD a tržby 25,443 mld. USD, obojí nad odhady.
It has been about a month since the last earnings report for Target (TGT - Free Report) . Shares have added about 3.6% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Target due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Target Beats Q1 Earnings Estimates on Strong Sales, Raises ViewTarget reported first-quarter fiscal 2026 results, wherein both top and bottom lines surpassed the Zacks Consensus Estimate and improved year over year. The company witnessed broad-based momentum across merchandise categories and sales channels, aided by improved traffic trends, solid digital performance and continued strength in high-margin non-merchandise businesses. Management also raised its fiscal 2026 sales outlook following the better-than-expected start to the year.
Target’s Quarterly Performance: Key Metrics & InsightsTarget reported adjusted earnings of $1.71 per share, which beat the Zacks Consensus Estimate of $1.41 by 21.3%. The bottom line also increased 31.5% from adjusted earnings of $1.30 reported in the year-ago period. The big-box retailer generated net sales of $25,443 million, which surpassed the Zacks Consensus Estimate of $24,460 million by 4%. The metric increased 6.7% year over year from $23,846 million.
Merchandise sales rose 6.4% to $24,894 million, while non-merchandise sales surged 24.6%, driven by strong growth in Roundel advertising revenues, Target Circle 360 membership income and the Target+ marketplace. Advertising revenues climbed to $246 million from $163 million in the prior-year quarter.
Meanwhile, comparable sales increased 5.6% against a decline of 3.8% in the year-ago quarter. The improvement reflected a 4.4% rise in traffic and a 1.1% increase in average transaction amount. Comparable store sales rose 4.7%, while comparable digital sales jumped 8.9%, led by more than 27% growth in same-day delivery powered by Target Circle 360.
All six core merchandising categories registered year-over-year sales growth in the quarter. Food & Beverage, Beauty and Household Essentials remained key growth drivers, while Hardlines, Apparel and Home categories also posted gains amid improving consumer demand trends.
TGT’s Margin PerformanceGross margin expanded 80 basis points to 29% from 28.2% last year. The improvement was driven by lower markdown rates, supply-chain productivity gains, and growth in advertising and other high-margin revenues, partially offset by higher product costs.
SG&A expense rate increased to 21.9% from the prior-year GAAP rate of 19.3%. Excluding interchange fee settlement gains in the year-ago quarter, adjusted SG&A expense rate increased modestly from 21.7%. The increase reflected higher compensation costs, additional field training hours, higher incentive compensation, increased marketing expenses and planned investments in capital projects.
Adjusted operating income increased 29.1% year over year to $1,135 million, while adjusted operating margin expanded to 4.5% from 3.7% in the prior-year quarter.
Target’s Financial Health SnapshotTarget ended the quarter with cash and cash equivalents of $3,534 million compared with $5,488 million at fiscal 2025-end. Inventory remained well controlled at $12,317 million versus $13,048 million in the prior-year quarter. Long-term debt and other borrowings stood at $14,282 million, while shareholders’ investment totaled $16,395 million.
Capital expenditures increased 31% year over year to $1 billion, primarily driven by investments in new stores and remodel activity.
The company paid dividends of $516 million in the quarter. It did not repurchase shares in the fourth quarter and has approximately $8.3 billion remaining under its August 2021 authorization.
For the trailing 12 months, after-tax return on invested capital was 12.4%, down from 15.1% in the prior-year period.
A Sneak Peek Into TGT’s FY26 OutlookThe company raised its fiscal 2026 net sales outlook following stronger-than-expected first-quarter performance. Target now expects net sales growth of around 4% for the current fiscal year compared with its earlier expectation of about 2% growth. The company also continues to anticipate net sales growth in every quarter of the year.
Management expects the fiscal 2026 operating income margin rate to improve by more than 20 basis points from the adjusted operating margin rate of 4.6% reported in fiscal 2025. The company expects GAAP and adjusted earnings per share near the high end of the previously guided range of $7.50-$8.50.
Management emphasized that it remains focused on disciplined investments in store operations, technology capabilities, fulfillment services and merchandising initiatives while maintaining flexibility in an uncertain macroeconomic environment.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.
VGM ScoresCurrently, Target has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the top 40% for value investors.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Target has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Podpora akcionářů Briana Cornella ve společnosti Target klesla na rekordních 87,2 % a poprvé spadla pod 90 %. Část investorů to označuje za „odměnu za selhání“.
Target has promised investors that it's pursuing an aggressive turnaround with a new CEO at the helm, but its longtime former top executive Brian Cornell still leads the retailer's board of directors — and some major investors are signaling they're hungry for change.
Shareholder backing for Target's former CEO and current Executive Chairman Cornell fell to its lowest level ever during the company's annual general meeting this month.
While Cornell, 67, was comfortably reelected to his position on Target's board of directors, he saw the steepest drop in support since he joined the retailer's board more than a decade ago, when he was hired as its CEO.
In all, 87.2% of shareholders voted to reelect him to the board — a 4% decline from the year-ago period and a material drop from his historical average of 95% support. It's also well below the average level of support directors have received across the S&P 500 this year, which Harvard Law puts at 96.6%.
"Getting over 95% is normal. Getting under 95% is poor, and getting under 90 is very poor. It means people are going out of their way to say they don't want you there anymore," said Kevin Kaiser, an adjunct full professor of finance at The Wharton School of the University of Pennsylvania who teaches a course on shareholder activism.
Given how many investors automatically approve what major proxy firms or boards suggest they vote for, "anything below 90 is considered a very bad result" and is rare to see, Kaiser said.
Cornell's drop in support comes after he stepped down from his CEO role and transitioned to be Target's executive chairman in February as the company contended with dwindling profits, a falling share price and three straight years of annual sales declines.
Neil Saunders, retail analyst and GlobalData managing director, said some analysts and investors viewed Cornell's appointment to executive chair as a "reward for failure" and wanted a clean break from the management team that oversaw so many of Target's issues.
"If you don't do a good job as CEO, then arguably you should be cleared out of the boardroom and I think that's how most people view it," Saunders said. "I don't think that that is unreasonable. To get rewarded for delivering a decline in the share price and causing problems for the company, it just doesn't sit well with a lot of people."
A Target spokesperson declined to comment and instead referred CNBC to its 2026 proxy statement and a press release it issued announcing the voting results of its annual general meeting. In its proxy statement, the company said keeping the roles of board chair and CEO separate "is appropriate given the company's immediate strategic and operational priorities" as the positions have "distinct roles and responsibilities."
"The separated structure allows [CEO Michael Fiddelke] to focus on the business, including implementation of key initiatives, during the initial phase of his CEO tenure, while Mr. Cornell's service as Executive Chair allows the Board to continue to leverage his in-depth knowledge of our business and industry during this transitional phase," the statement reads.
Critiquing CornellSince joining Target as the retailer's CEO in 2014, Cornell grew sales by more than 44% and helped transform it into a $100 billion-plus juggernaut as he oversaw the expansion of its digital presence, grew stores and steered the company through the Covid-19 pandemic.
But over the past few years, he's faced rising criticism as the company has underperformed expectations and lost share to competitors like Costco, Walmart and Amazon. Target has been criticized for mismanaging inventory, under-investing in stores and falling behind on the trendy, eye-catching merchandise the retailer built its name on.
Target has also been the subject of backlash over its actions on a number of social justice issues, and the brunt of that has fallen on Cornell. The retailer reduced certain LGBTQ-themed pride merchandise in stores several summers ago and rolled back diversity, equity and inclusion programs, which led to nationwide boycotts and preceded weeks of foot traffic declines.
Combined, these issues have contributed to a precipitous drop in Target's share price, which is up about 33% year to date but still down by roughly 50% since its all-time high in 2021.
When the company announced that Cornell would be stepping down as CEO in February, Wall Street had favored an outside candidate to succeed him, according to a June 2025 survey of 51 investors by Mizuho Securities, an equity research firm.
When it said two insiders would continue to lead the company — Cornell as executive chair and company veteran Fiddelke as CEO— the same day that it forecast another annual sales decline, investors were disappointed, leading shares to fall. However, since then, it appears as if analysts and investors are warming up to Fiddelke, who received 99% of the vote during the company's meeting.
"It feels like they're doing a lot of things better in terms of merchandising," Michael Baker, a senior research analyst at investment bank D.A. Davidson, said in an interview. "To me that would be a sign of continued progress under Michael Fiddelke."
During the company's fiscal first quarter, which ended May 2, Target saw comparable sales grow 5.6% — its first positive same-store sales number in five quarters, with strength across all six of its core merchandising categories. While Target said its turnaround efforts are showing signs of early progress, finance chief James Lee acknowledged higher tax refunds helped to fuel spending, a benefit he expects to fade over the rest of the year.
Losing shareholder supportThe exact investors who voted against Cornell, and their reasons, aren't clear since complete voting records haven't been released yet, but two of the nation's largest public pension fund managers turned against him.
The Florida State Board of Administration, which manages the Florida Retirement System Pension Plan, the sixth-largest pension plan in the nation with about $277 billion in assets under management, voted against Cornell after supporting him for the past nine years, proxy records show.
The fund manager didn't return CNBC's request for comment, but proxy records show it voted against Cornell because of "poor long-term company performance."
New York's comptroller, which manages the $295 billion New York State Common Retirement Fund, supported Cornell from 2017 through 2024 but voted against him at the last two meetings, state records show.
In a statement to CNBC, State Comptroller Thomas DiNapoli said "Cornell and others should not be rewarded for poor performance."
"Investors are not supporting Target's leadership because it mismanaged the company's workforce, hurt the brand, and damaged shareholder value," DiNapoli said. "It's why New York state's pension fund and other shareholders voted against board directors and Target's executive pay plan."
While influential, the pension funds are not among Target's top 50 shareholders. It's not clear how Target's largest investors voted at the meeting.
A number of left-leaning activists — including SOC Investment Group, Trillium Asset Management and Mercy Investment Services — called on investors to vote against Cornell. The activists have also urged investors to vote against Lead Independent Director Christine Leahy, who received 88.5% of the vote during the most recent meeting, an 8% decline in support from last year.
"Let's suppose somebody is being criticized and it's damaging our reputation with our customers and our employees, and as a solution to that, we promote this person to the executive chair role at the board level," said Wharton's Kaiser. "It just doesn't smell right, and the person who would have had the primary role in stopping that from happening would have been the lead independent board member."
In its proxy statement, Target called Leahy a strong director "supported by a governance structure designed to further promote independence" as it recommended shareholders vote in her favor.
It's unclear whether or not the investor pressure will have an impact on Target's board, but Kaiser said change at that level typically happens when directors see such dramatic drops in support during annual meetings.
"It means there's a lot of pressure now on the board and on the individuals on the board and they clearly are losing the support of the shareholders," Kaiser said. "If they don't do something, the next [annual general meeting] won't go well for them."
Target v roce 2026 plánuje investovat zhruba 5 miliard USD do nových prodejen, remodelací, logistiky a technologií. Ve 1. čtvrtletí hrubá marže stoupla na 29 % a obrat zásob se zlepšil o více než 10 %.
Key Takeaways Target plans about $5B in 2026 capex for new stores, remodels, supply-chain facilities and tech upgrades.Target opened its 2,000th store, advanced 100 remodels and plans more than 30 new stores this year.Target's Q1 gross margin rose 80 basis points to 29%, while inventory turns improved more than 10%. Target Corporation (TGT - Free Report) kicked off fiscal 2026 with an aggressive capital expenditure of $1 billion during the first quarter. This represents a substantial 31% increase compared to the prior year, fueled by heightened investments in new stores and comprehensive store remodels. The retail giant plans to maintain this momentum by deploying approximately $5 billion for the full year, with funds directed toward new stores, remodels, supply-chain facilities and technology upgrades.
The early financial indicators provide positive signals regarding asset productivity and operational execution. Target achieved a notable milestone by opening its 2,000th store while advancing more than 100 remodel projects. The company plans to open more than 30 stores this year and intends to add about 300 new stores by 2035. Management highlighted that remodel investments are being prioritized in food and other frequency-driven categories where returns have been strongest.
The supply chain is another major recipient of capital. Target recently opened a food distribution center in Colorado and a receiving facility in Houston that is expected to process roughly 25 million cartons annually. These investments are designed to improve inventory availability, increase network capacity and reduce operational inefficiencies. These improvements are particularly important because Target fulfills more than 95% of sales through its stores.
Early indicators suggest these investments are already supporting performance. First-quarter gross margin expanded 80 basis points to 29%, aided in part by supply-chain productivity improvements. Inventory productivity also improved, with inventory turns rising more than 10% year over year.
Still, the ultimate measure of success will be whether these projects generate returns above Target’s current capital efficiency levels. For the trailing 12 months through the first quarter, after-tax return on invested capital fell to 12.4% from 15.1% a year ago. Management remains confident that driving sustainable top-line growth through enhanced physical and digital capabilities will ultimately fuel margin expansion and optimize long-term capital efficiency.
How Dollar General and Costco Compare to TargetDollar General Corporation (DG - Free Report) is investing heavily to drive long-term returns through store enhancements, technology and expansion initiatives. In first-quarter fiscal 2026, Dollar General spent $352 million on capital projects, including store remodels, relocations, new store openings and technology upgrades. The company completed 659 Project Renovate remodels and 711 Project Elevate remodels during the quarter while reaffirming plans for roughly 4,730 real-estate projects in fiscal 2026. DG envisions capital expenditures between $1.4 and $1.5 billion for fiscal 2026.
Meanwhile, Costco Wholesale Corporation (COST - Free Report) continues to invest aggressively in warehouse expansion, digital capabilities and member experience. Costco expects capital expenditures of roughly $6.5 billion this year to support new warehouses, remodel existing locations and enhance its digital platform. The company is targeting more than 30 net new warehouse openings annually in the coming years, reflecting confidence in the long-term returns from these investments. Strong membership growth and nearly 90% renewal rates further support Costco’s investment strategy.
What the Latest Metrics Say About TargetTarget has seen its shares jump 13.7% over the past three months compared with the industry’s rise of 2.1%.
Image Source: Zacks Investment Research
From a valuation standpoint, Target's forward 12-month price-to-earnings ratio stands at 15.27, lower than the industry’s ratio of 31.26. However, TGT is trading above its 12-month median level of 13.41.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Target’s current financial-year sales and earnings per share implies year-over-year growth of 3.9% and 10.3%, respectively. The consensus mark for earnings has risen 13 cents to $8.35 per share over the past 30 days.
Image Source: Zacks Investment Research
Target currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stellar AfricaGold plánuje na projektu Zuénoula v Pobřeží slonoviny dvoufázový 10 000metrový augerový vrtací program na třech prospektech, jehož cílem je otestovat 7 potenciálních cílů. Práce mají začít na konci června.
Vancouver, BC – June 23, 2026 – TheNewswire - Stellar AfricaGold Inc. (“Stellar” or the “Company”) (TSXV: SPX, TGAT: 6YP and FSX: 6YP) is pleased to announce a 10,000 meter auger drill program at the Stellar-MetalsGrove Joint Venture Zuénoula Gold Project, Cote d’Ivoire.
Highlights
• Joint venture operator MetalsGrove Mining Ltd. (“MetalsGrove”) has consolidated the exploration targets at the Zuénoula Permit into four principal prospects - Fifty-Five, Central, South East and South West Prospects following ongoing technical review and field verification of multiple gold anomalies.
A two-rig, two-stage 10,000-meter auger drilling program is planned to test gold anomalous clusters at the Fifty-Five, Central and South East Prospects, with mobilisation and commencement targeted for end June.
Recent soil geochemistry interpretation has defined a total of 7 Potential Drill Targets within the consolidated4 prospects on the permit. These targets will be progressively refined through ongoing infill soil sampling and auger drilling before drilled by Aircore/Reverse Circulation (AC/RC) or diamond drilling (DD) from late 2026.
Infill soil sampling programs continue across all four prospects at varying grid spacings,with results continuing to enhance target definition and prioritisation for drill testing.
About the Stellar-MetalsGrove Joint Venture Zuénoula Gold Project, Cote d’Ivoire.
The Stellar-MetalsGrove Zuénoula Gold Project is a joint venture exploration project between Stellar’s Ivorian subsidiary Aucrest SARL (“Aucrest”) and MetalsGrove Mining Ltd.’s Ivorian subsidiary MetalsGrove CDI Pty Ltd (MetalsGrove) to advance Stellar’s 395.78 square kilometer early-stage exploration permit called Zuénoula in Côte d’Ivoire (see Figure 2 below). Pursuant to the joint venture agreement MetalsGrove, the project operator, may earn up to a 50% interest in the Zuénoula Gold Project by incurring US$3,000,000 in exploration expenditures and up to an 80% interest in the Zuénoula Gold Project by incurring a total of US$6,000,000 in exploration expenditures. (For further details of the Stellar-MetalsGrove Joint Venture Agreement see Stellar news release December 9, 2025.)
Stellar Management Commentary
Stellar President and CEO J. François Lalonde commented:
"Following extensive soil sampling and target refinement, the joint venture exploration team has consolidated the Zuénoula Permit into four principal prospect areas and are preparing to commence a 10,000-meter auger drilling program across the 7 defined potential drill targets. The program is designed to test the bedrock potential beneath surface gold anomalies and represents a critical step towards AC, RC and diamond drilling later this year.
The definition of seven potential drill targets marks an important milestone in the systematic exploration approach and highlights the growing scale and prospectivity of the Zuénoula Gold Project. Several targets exhibit kilometre-scale strike lengths and remain open to further refinement through ongoing infill soil sampling. With more than 1,700 soil samples currently awaiting assay results, there is significant potential to further expand these targets and discover more targets across the permit.
We look forward to updating shareholders as auger drilling commences and additional soil sampling assay results continue to strengthen the discovery potential at Zuénoula."
Stellar is pleased to announce the planned commencement of a two-rig, two-stage, 10,000 meter auger drilling program at its Zuénoula Permit in Côte d’Ivoire to test the area’s seven potential drill targets defined from multiple gold anomalies identified through the Company’s systematic soil geochemistry programs.
The joint venture operator has consolidated the exploration targets at the Zuénoula Permit into four principal prospects following ongoing technical review and field verification of multiple gold anomalies identified from completed various surface soil sampling programs to date (Figure 1). The Fifty-Five Prospect now incorporates the original Fifty-Five Prospect and its northeastern extension, while the South East Prospect combines the former Konezra Prospect with the South East Prospect. The Central Prospect and South West Prospect remain unchanged from previous reporting. This refinement provides a clearer framework for exploration targeting and reflects the Company's growing understanding of the distribution and continuity of gold anomalism across the project area.
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Figure 1. Zuénoula Soil Sampling Progress Across the Four Consolidated Exploration Prospects
A two-rig, two-stage, 10,000 m auger drilling program within the Fifty-Five, Central and South East Prospects has been designed (Figure 2) to test the most significant gold anomalous clusters identified. Stage 1 will comprise approximately 5,000m of drilling on a nominal 400m × 50m drill pattern, followed by Stage 2 infill drilling on a 250m × 25m spacing, subject to the results obtained from the initial phase. Auger drilling is planned to an average depth of approximately five metres to test the mineralisation potential from the upper saprolite horizon. Results from ongoing soil infill programs across all three auger target areas will be incorporated into final drill planning to further refine and optimise drill line locations prior to commencement. The two-rig mobilisation and commencement date is scheduled for end June 2026.
Interpretation of the current soil geochemistry dataset (Figure 1 & Table 1) has increased the definition of potential drill targets to 7 (Figure 2), each exhibiting kilometre-scale prospective strike length (Figure 3 and 4). These targets will continue to be refined through ongoing infill soil sampling and auger drilling programs, with the objective of defining coherent bedrock-related mineralisation suitable for follow-up AC/RC or DD from late 2026.
Infill soil sampling continues at varying grid spacings across all four prospects at the Zuénoula Permit. To date, assay results have been received for 1,617 soil samples, while a further 1,755 samples are awaiting laboratory analysis. An additional 306 samples are scheduled for collection.
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Figure 2. Planned Auger Drilling Areas and 7 Potential Drill Targets Defined at Zuénoula Permit
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Figure 3. Planned Auger Drilling Areas and Potential Drill Targets Defined
at Fifty-five and Central Prospects
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Figure 4. Planned Auger Drilling Area and Potential Drill Targets at South East Prospect
Next Phases of Work
The Company has planned the following next phases of exploration programs to advance the identification of new potential drill targets and refine existing potential drill targets for drill testing:
Auger drilling:
Auger drilling across 3 Prospects: 10,000 meters in 2 stages.
South West Prospect: 400m*400m (pending assay results)
Qualified Person
The technical information contained in this release has been reviewed and approved by Mr. Robert Perring, a current member of the Australian Institute of Geoscientists (MAIG) and Exploration Manager of MetalsGrove Mining Limited. Mr. Perring is a Qualified Person under National Instrument 43-101.
About Stellar Africagold Inc.
Stellar AfricaGold Inc. is a Canadian precious metal exploration company focused on precious metals
in North and West Africa, with active programs in Morocco and Côte d’Ivoire. Stellar’s principal exploration projects are its advancing gold discovery at the Tichka Est Gold Project in Morocco, and its
early-stage exploration Zuénoula Gold Project in Côte d’Ivoire which is operated in Joint Venture with MetalsGrove Mining Ltd subsidiary, MetalsGrove CDI Pty Ltd.
The Company is listed on the TSX Venture Exchange symbol TSX.V: SPX, the Tradegate Exchange TGAT: 6YP and the Frankfurt Stock Exchange FSX: 6YP.
The Company maintains its head office in Vancouver, BC and has a country office in Marrakech, Morocco.
QA/QC
JORC Code, 2012 Edition – Table 1
Section 1- Sampling Techniques and Data
Criteria
JORC Code Explanation
Commentary
Sampling Techniques
Nature and quality of sampling (e.g. cut channels, random chips, or specific specialied industry standard measurement tools appropriate to the minerals under investigation, such as downhole gamma sondes, or handheld XRF instruments, etc.) These examples should not be taken as limiting the broad meaning of sampling.
Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.
Aspects of the determination ofmineralisation that are Material to the Public Report.
In cases where ‘industry standard’ work has been done, this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases, more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.
No drilling has been undertaken on Zuénoula PR-750
All soil samples collected on Zuénoula PR-750 have been analysed for gold by fire assay at Bureau Veritas laboratory in Abidjan, Côte d’Ivoire.
SOIL SAMPLING STAGES
Stage 1: Initial, permit-wide, broad-spaced soil sampling on 1000m x 1000m grid
Stage 2: Gold anomalous clusters and trends defined by multiple anomalous soil samples (+20ppb Au) are then infilled with soil samples collected on 400m x 400m grid
Stage 3: Coherent gold soil anomalies are then infilled with soil samples collected on 200m x 200m grid
Stage 4: Higher density 200m x 50m soil sampling to sharpen definition of gold soil anomalies
Stage 5: Augering and trenching of coherent gold soil anomalies
Stage 6: Drill testing of gold soil and auger anomalies.
SOIL SAMPLING PROCEDURES
MGA has contracted the experienced consulting group SEMS Exploration Services (SEMS) to conduct all soil sampling
Up to four sampling crews may be active at any one time
The MGA Exploration Manager was onsite at the start of the field program to instruct the sampling crew on the Standard Sampling Procedure required by MGA
MGA provided SEMS Exploration Services with an Excel table listing the designated sample point locations using WGS-84 UTM zone 29N coordinates
Each soil sample is collected from within 20 metres of the designated sample point, with the actual sample point then recorded
At each sample point: 1) the organic rich soil is brushed away, 2) a 40cm deep hole dug and the sample collected by taking a channel-cut along the bottom 20cm of the hole, 3) 1000g of the minus 2mm sieved fraction of each sample is collected from the sample point, 4) gold is determined by fire assay (LDL 2ppb)
Duplicate samples are collected every 20th sample, certified reference material (CRM) inserted every 20th sample, and blanks inserted every 20th sample.
Samples are stored at the secure SEMS field compound in Zuénoula prior to transport to Bureau Veritas in Abidjan of gold analysis.
Drilling Techniques
Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. corediameter,tripleorstandard tube,depthofdiamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).
No drilling has been undertaken.
Drill Sample Recovery
Method of recording and assessing core and chip sample recoveries and results assessed.
Measures taken to maximise sample recovery and ensure representative nature of the samples.
Whether a relationship exists between sample recovery and grade,andwhether samplebias may have occurred due to preferential loss/gain of fine/coarsematerial.
No drilling has been undertaken.
Logging
Whether core and chip samples have been geologically and geotechnicallyloggedtolevel of detail to support appropriate Mineral Resource estimation, miningstudiesandmetallurgical studies.
Soil samples are comprehensively logged for a range of parameters including colour, soil horizon, sample weight, slope, dominant grain size (clay, silt, sand), general topography, residual or transported, proximity to artisanal workings, other ground disturbances such as field plowing, and general land use (grassland, plantation, crop, etc.).
Sub-sampling Techniques and Sample Preparation
Ifcore,whethercutorsawnand whether quarter, half or all core taken.
Ifnon-core,whetherriffled,tube sampled, rotary split, etc. and whether sampled wet or dry.
For all sample types, the nature, quality and appropriateness of the sample preparation technique.
Quality control procedures adopted for all sub-sampling stagestomaximise representivity of samples.
Measures taken to ensure that thesamplingisrepresentativeof the in-situ material collected, including, for instance, results for field duplicate/second-half sampling.
Whethersample sizes are appropriate to the grain size of the material being sampled.
No drilling has been undertaken
No sub-sampling of the 1000g soil samples is undertaken prior to the sample arriving at Bureau Veritas laboratory
At Bureau Veritas, the entire 1000g sample is pulped prior to the laboratory taking a 50g split for lead collection fire assay determination of gold concentration.
Quality of Assay Data and Laboratory Tests
The nature, quality and appropriateness of the assaying andlaboratoryproceduresused and whether the technique is considered partial or total.
Forgeophysical tools, spectrometers, handheld XRF instruments,etc.,theparameters used in determining the analysis, including instrument make and model, reading times, calibrationfactorsapplied,and
their derivation, etc.
Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, externallaboratorychecks)and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.
Bureau Veritas is an internationally accredited assay laboratory located in Abidjan, Cote d’Ivoire.
Assay results for all samples presented in the announcement were determined by fire assay (Lab Code: FE450, LDL 2ppb), which is a total gold extraction method for analysis.
The lower detection limit (LDL) of 2ppb is considered appropriate for greenfields, early stage, exploration soil sampling
Fire assay gold is considered one of the most reliable assay techniques for gold analyses.
Verification of Sampling and Assaying
The verification of significant intersections by either independent or alternative company personnel.
Theuseoftwinnedholes.
Documentationofprimarydata, data entry procedures, data verification, data storage (physical and electronic) protocols.
Discussanyadjustmentstoassay data.
FIRE ASSAY ANALYSIS
All samples have been analysed for gold by fire assay at Bureau Veritas laboratory in Abidjan, Cote d’Ivoire
The 1000g -2mm sample collected in the field is analysed for gold by fire assay (Lab Code: FE450, LDL 2ppb)
At the laboratory, the 1000g -2mm sample is dried and pulverised to 85% passing 75 microns.
This sample pulp is then mixed with a combination of chemical reagents, which when heated to high temperatures results in the formation of a lead button and slag. The lead button that contains the precious metals (including gold) is cupelled at high temperature. The lead is adsorbed by the cupel leaving behind a bead that contains the precious metals.
The bead is acid digested and analysed by AAS, with a lower detection limit of 2ppb Au
Location of Data Points
Accuracy and qualityof surveys used to locate drillholes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.
Specification of the grid system used.
Quality and adequacy of topographic control.
A handheld GPS is used to locate the soil data positions, with a +/-5m vertical and horizontal accuracy
Sample locations (UTM WGS-84 zone 29N) and sample descriptions are noted on a standard form in the field and entered on a computer.
GPS measurements of sample positions are sufficiently accurate for exploration targeting gold systems.
Data Spacing and Distribution
Data spacing for reporting Exploration Results.
Whether the data spacing and distribution is sufficient to establish the degree of geologicalandgradecontinuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.
Whethersamplecompositing hasbeenapplied.
An 1,000m x 1,000m offset grid pattern has been adopted for the entire permit area, excluding areas of irrigated sugar cane and villages.
Broad-spaced soil sampling (1000m by 1000m) and low level gold fire assay analysis (LDL 2ppb) is considered an effective technique for identifying and delimiting gold anomalous clusters and trends, which are then followed up with higher density sampling at 400m 400m, 200m x 200m, and in some areas 200m x 50m, as the next phases of sampling ahead of trenching, augering, and drill testing of coherent gold soil anomalies.
Orientation of data in relation to geological al structure
Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.
If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.
The sample location configuration has been deliberately planned to avoid directional bias.
Sample security
The measures taken to ensure sample security.
1000g of -2mm sieved fraction of soil samples are collected in plastic bags, assigned individual sample numbers and transported to the secure SEMS compound in Zuénoula
Samples have been analysed by fire assay at Bureau Veritas in Côte d’Ivoire and were personally transported to the laboratory by a senior member of the MetalsGrove Abidjan-based exploration team.
Audits or Reviews
The results of any audits or reviews of sampling techniques and data.
The sampling and assay techniques adopted by MetalsGrove has been effectively used in the Vavoua-Kounahiri district, and more widely in Cte d’Ivoire, to define drill targets and it is considered an effective initial approach for defining gold anomalous lithogeochemical trends.
Section 2 - Reporting of Exploration Results
(Criteria listed in the preceding section also apply to this section.)
Criteria
JORC Code Explanation
Commentary
Mineral Tenement and Land Tenure Status
Type, reference name/number, location and ownership, including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.
The security of the tenure held at the time of reporting, along with any known impediments to obtaining a licence to operate in the area.
Following the acquisition of the three Gemica joint venture (JV) permits PR-454 (granted), PR-1063 (application) and PR-1102 (application) in Côte d’Ivoire, MetalsGrove entered another JV with TSX-V listing company Stellar AfricaGold Inc. (Stellar) on PR-750 Zuénoula.
Zuénoula PR-750 was granted on 17 April 2024 for an initial four-year period, renewable for two additional three-year periods.
The Zuénoula permit is located with Kounahiri West, Vavoua and Vavoua West permits occupy a combined area of 1,315 km², strategically situated along the Abujar–Napie gold trend within the Oumé–Fetekro Birimian greenstone belt in central west of Côte d’Ivoire, approximately 100 km north of the Abujar gold mine and 160 km south of the Napié gold project.
Exploration Done by Other Parties.
Acknowledgement and appraisal of exploration by other parties.
MetalsGrove is not aware of any previous systematic exploration for gold having been conducted within either Zuénoula PR-750, Vavoua PR-454, Vavoua West PR-1102, or Kounahiri West PR-1063
Geology
Deposit type, geological setting, and style of mineralisation.
The Vavoua, Vavoua West, Kounahiri West and Zuénoula permitsare located in the central west of Côte d'Ivoire at the south edge of the West Africa craton. This region is the world’s largest Proterozoic gold-producing region, and Cte d’Ivoire contains 35% of the region’s Birimian Group rocks, which host multiple multi-million-ounce gold ore systems.
The GEMICA JV permits and Stellar JV permit, together cover a combined area of 1,315 km², and are strategically situated along the Abujar–Napié gold trend within the Oumé–Fetekro Birimian greenstone belt, and are located approximately 100 km north of the Abujar gold mine and 160 km south of the Napié gold project.
Drillhole Information
A summary of all information material to the understanding of the exploration results, including a tabulation of the following information for all Material drill holes:
easting and northing of the drillhole collar elevation or RL (Reduced Level – elevation above sea level in metres) of the drillhole collar dip and azimuth of the hole
down hole length and interception depth hole length.
No drilling results are included in this release.
Data Aggregation Methods
In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g., cutting of high grades) and cut-off grades are usually Material and should be stated.
Where aggregate intercepts incorporate short lengths of high-grade results and longer lengths of low-grade results, the procedure used for such aggregation should be stated, and some typical examples of such aggregations should be shown in detail.
The assumption used for any reporting of metal equivalent values should be clearly stated.
No data aggregation methods were applied to the soil sampling data.
Relationship Between
Mineralisation Widths and
Intercept Lengths
If the geometry of mineralisation with respect to the drillhole angle is known, its nature should be reported.
Not applicable.
Diagrams
Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported. These should include, but not be limited to, a plan view of drillhole collar locations and appropriate sectional views.
See maps in the body of the report.
Balanced Reporting
Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practied, avoiding misleading reporting of Exploration Results.
The soil assay data was interpreted by the MGA Exploration Manager who has more than 40 years of gold exploration experience. MGA assay results are also interpreted with reference to the surface geochemical expressions of more than 15 of the major gold discoveries in Cote d’Ivoire.
Other Substantive Exploration Data
Other exploration data, if meaningful and material, should be reported, including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
Not applicable.
Further Work
The nature and scale of planned further work (e.g. tests for lateral extensions, or depth extensions, or large-scale step-out drilling).
Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.
Completion of 200m x 200m sampling at Fifty-Five Prospect NE area.
Plotting and interpreting the assay results for the 1755 soil samples currently being assayed at Bureau Veritas.
Start stage 1- 5,000 metres auger drilling at 400m x 50m spacing at refined 7 Potential Drill Targets area across Fifty-Five, Central and South East Prospects.
Stellar’s President and CEO J. François Lalonde can be contacted at +1 514-9940654 or by email at [email protected]. Additional information is available on the Company’s website at www.stellarafricagold.com.
On Behalf of the Board
J. François Lalonde
President & CEO
This news release contains “forward-looking statements” within the meaning of applicable Canadian securities laws, including statements which may not have been based solely on historical facts but rather may be based on the Company’s current expectations about future events and results. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis.
Forward-looking statements are based on expectations, estimates and projections as at the date of this news release and are subject to known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed or implied. Such risks and uncertainties include, but are not limited to, exploration risk, mineral resource risk, the Company not achieving the production milestones described herein, changes in business plans or commodity prices, failure to obtain regulatory approvals, geopolitical country risk, and the risk factors described in the Company’s most recent Management’s Discussion and Analysis and Annual Information Form, which are available on SEDAR+ at www.sedarplus.ca.
Forward-looking statements are not guarantees of future performance and should not be unduly relied upon. Except as required by law, the Company undertakes no obligation to update or revise any forward-looking statements contained herein.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Nejvyšší soud USA usnadnil ExxonMobil cestu k odškodnění za majetek zabavený Kubou a vrátil jeho spor s CIMEX zpět k nižšímu soudu. Firma tvrdí, že její nárok dnes přesahuje 1 miliardu USD.
SummaryCompaniesExxon seeks compensation for property seized in 1960Trump allowed wave of US lawsuits against CubaExxon sued under US law called the Helms-Burton ActTrump administration supported Exxon in caseWASHINGTON, June 23 (Reuters) - The U.S. Supreme Court made it easier on Tuesday for U.S. companies to seek compensation from Cuba's government for property seized decades ago by former leader Fidel Castro's government, ruling in favor of ExxonMobil (XOM.N), opens new tab in its lawsuit against Cuban state-owned firm Corporación CIMEX.
In a 6-3 decision, the court said a legal defense called foreign sovereign immunity, which generally prohibits U.S. lawsuits against foreign governments and their agents, is not available in cases like the one Exxon brought against CIMEX under a 1996 U.S. law called the Helms-Burton Act.
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Conservative Justice Brett Kavanaugh, who authored the ruling, wrote that the 30-year-old federal law eliminates "the sovereign immunity of Cuban agencies and instrumentalities."
"The Helms-Burton Act authorizes private suits against Cuban agencies and instrumentalities — suits that would largely be nonstarters if subjected to the FSIA's requirements," Kavanaugh wrote, referring to the Foreign Sovereign Immunities Act of 1976.
The court's six conservative justices were in the majority. Justice Elena Kagan wrote a dissent that was joined by the court's two other liberal members.
Kagan said that the plaintiffs should be required to show that their suit was exempt from the Foreign Sovereign Immunities Act, arguing that, "Nothing in the text or 'architecture' of the Helms-Burton Act suggests that Congress abrogated the sovereign immunity of these defendants — much less that it did so with the requisite unmistakable clarity."
The Supreme Court reversed a lower court's 2024 ruling that CIMEX could invoke the sovereign immunity defense.
The decision removes a major obstacle Exxon faced in its 2019 lawsuit that accused CIMEX of unlawfully using a refinery and service stations that once belonged to Standard Oil, Exxon's corporate predecessor. The case will return to a lower court for further deliberations on CIMEX's potential liability.
A Helms-Burton Act provision called Title III permits lawsuits to be filed in U.S. courts against anyone who "traffics" in property confiscated by Cuba's communist government after the 1959 revolution that brought Castro to power. U.S. President Donald Trump's administration supported Exxon's appeal to the Supreme Court.
An Exxon spokesperson welcomed the court's decision on Tuesday, calling it "a critical moment in a 60-year effort to be compensated for what the Cuban government illegally seized."
"It reflects two things: the merits of our argument and the fact that our company will fight a good fight for as long as it takes," the spokesperson said.
The logo of Exxon Mobil Corporation is shown on a monitor above the floor of the New York Stock Exchange in New York, December 30, 2015. REUTERS/Lucas Jackson/File Photo/File Photo Purchase Licensing Rights, opens new tab
U.S.-CUBA TENSIONSThe ruling was issued at a rancorous time in U.S.-Cuban relations. The United States on May 20 brought murder charges against former Cuban President Raúl Castro, Fidel's younger brother, in a major escalation in Trump's pressure campaign against Cuba's government.
Under Trump, the United States has effectively imposed a blockade on Cuba by threatening sanctions on countries supplying it with fuel, triggering power outages and exacerbating its worst crisis in decades.
Exxon's suit involved Fidel Castro's confiscation of all of the U.S. energy company's Cuban oil and gas assets in 1959, which represented a loss valued at $70 million at the time. Exxon's current claim is now valued at more than $1 billion because of interest and the potential for enhanced damages.
According to Exxon, its assets were transferred to CIMEX, Cuba's largest state-owned conglomerate. CIMEX continues to hold and profit from the confiscated property.
Exxon's lawsuit was part of a flood of about 40 cases filed under the Helms-Burton Act in 2019 and 2020 because of a change in U.S. policy toward Cuba during Trump's first term in office.
When it passed the Helms-Burton Act, Congress authorized the U.S. president to suspend Title III on national security grounds. The provision was then suspended by three presidents seeking to avoid diplomatic conflicts with allies like Canada and Spain whose companies have invested in Cuba. Trump lifted that suspension in 2019.
Lower court rulings had made it difficult for U.S. companies to prevail in such cases, with most lawsuits being dismissed on jurisdictional or procedural grounds.
CRUISE DISPUTEThe decision was one of two issued by the Supreme Court this year in cases involving the Helms-Burton Act and Cuba.
In the other case, the court delivered a setback on May 21 to four American cruise operators that contested $440 million in combined judgments in litigation brought by a U.S. company called Havana Docks Corporation accusing them of unlawfully using docks in Cuba that it built and were later seized.
The justices set aside a lower court's decision to throw out the judgments against Carnival (CCL.N), opens new tab, Norwegian Cruise Line Holdings (NCLH.N), opens new tab, Royal Caribbean Cruises (RCL.N), opens new tab and MSC Cruises that were awarded to Havana Docks. The Supreme Court's decision sent the case back to the lower court for it to consider other defenses offered by the cruise lines.
Reporting by Jan Wolfe; Editing by Will Dunham
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Ford spouští Ford Energy a podle Morgan Stanley by mohl do roku 2030 vygenerovat až 500 milionů USD v provozním zisku. První dodávky mají začít v roce 2028.
Ford (F 0.36%) made a big move in May when it announced plans to launch an energy storage business called Ford Energy.
Ford stock soared 47% last month mostly on the news of the company's new endeavor, and investors are likely excited by analysts' predictions that the new business could generate $500 million in operating profit for Ford by 2030.
With this new entry storage business about to launch, is now the time to buy Ford stock? Here's why investors may want to hold off on making that move.
Image source: Getty Images.
Ford is tapping into increasing energy usage from AI Artificial intelligence (AI) is fueling rising demand for energy storage, and Barclays analyst Dan Levy recently said that Ford is a "hidden data center beneficiary."
Automakers invested tens of billions of dollars over the past several years to convert factories for electric vehicle (EV) production. The problem, as it turned out, is that rising EV material costs, lower-than-expected demand, and tariffs have caused many companies to abandon their most ambitious EV goals. The federal government eliminating EV tax credits didn't help either.
The result is that Ford's losses from its EV division add up to $16 billion over the past few years -- and management says it will continue losing money on EVs for the next three years.
Which is why Ford is trying to recoup some of its battery and EV tech investments.
Its announcement last month that it would shift some of its EV battery factories to make battery storage excited investors. The goal is for Ford to produce up to 20 gigawatts of capacity over the next five years, with battery deliveries starting in 2028.
Ford CEO Jim Farley told the Detroit Free Press last month that the company is already seeing "tremendous interest from customers," adding, "[W]e're off to a good start both on the supply side, building the plants, building the cells, getting the machines up and running, as well as the demand creation side."
Ford will invest $2 billion in the business to get things up and running.
Analysts at Morgan Stanley said Ford Energy could generate $500 million in operating profit by 2030. The analysts also believe Ford could sign supply agreements with commercial customers in the coming months.
That may be a drop in the bucket compared to Ford's earnings before interest and taxes (EBIT) of nearly $6.8 billion last year. Still, investors are excited to see the company thinking outside of the traditional automotive box and embracing new revenue opportunities.
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It could be a smart move, but it's too early to bet on Ford Energy It's a bit surprising and a little concerning that Ford stock rose so high last month simply on the news of Ford Energy.
The automaker's energy business has no profit and no revenue to date. Instead, investors were excited that Ford is doing something AI-adjacent.
There needs to be higher standards than that for buying a stock, though. It's noteworthy that Ford is moving into the energy storage business, and it's commendable that the automaker is thinking of new ways to repurpose some of the battery investments it made for its EVs.
But it will be a couple of years before deliveries begin, which means it'll be that long (or even longer) before investors see any potential profits from Ford Energy.
So, no, Ford stock is not a buy just because it's investing in energy storage for data centers. The share price surge is more of a symptom of investors believing that anything AI-related is an automatic success.
Instead, Ford shareholders should be more concerned with how the company manages costs and improves vehicle sales. The company experienced a tough year in 2025, with a net loss of $8.2 billion due to a $19.5 billion write-down related to its EV restructuring.
Selling some batteries that bring in $500 million in operating profit four or so years from now certainly is not the fix some investors think it is.
Ford zvýšil celoroční upravený výhled EBIT na 8,5–10,5 miliardy USD díky silnému Ford Pro a vyšším maržím. Stellantis naopak čelí tlaku nákladů na suroviny a snižovaným odhadům EPS.
Key Takeaways Ford is favored for stronger execution, improving earnings outlook and profitable growth drivers.F raised 2026 adjusted EBIT guidance as Ford Pro and higher-margin vehicles support results.Stellantis faces raw material cost pressure, lower EPS revisions and weaker recent share performance. Both the leading automakers, Ford Motor Company (F - Free Report) and Stellantis N.V. (STLA - Free Report) , have recently announced strategic partnerships to strengthen their respective long-term growth.
On May 18, 2026, Ford Energy signed a five-year agreement with EDF Group to supply up to 20 GWh of battery energy storage systems for U.S. grid-scale projects beginning in 2028.
On June 17, 2026, Stellantis announced a partnership with Wayve and Uber Technologies to accelerate the global deployment of Level 4 autonomous robotaxis by combining vehicle platforms, AI driving technology and ride-hailing capabilities.
While both automakers appear well-positioned for sustained growth, let’s dig deeper into their fundamentals to get a clearer perspective on which company currently holds the stronger competitive advantage.
The Case for Ford StockFord Pro remains a key growth engine, supported by demand for commercial vehicles and expanding software and physical services. In the first quarter of 2026, paid software subscriptions rose 30% year over year to 879,000, reinforcing the shift toward higher recurring revenues. The company expects 2026 Ford Pro EBIT of $6.5-$7.5 billion compared with $6.84 billion in 2025, which keeps the segment central to Ford’s longer-term earnings mix.
Ford’s strategy of emphasizing higher-margin vehicles and trims appears to be working. The strong demand for trucks, large SUVs, off-road trims and hybrids with richer margins is improving profitability. Off-road performance trims, such as Raptor and Tremor, now account for nearly one-quarter of U.S. sales, while Ford also reported improved mix within Explorer, Expedition and F-Series.
Ford maintained lower incentive spending than competitors while still achieving strong transaction prices and retail share gains. This suggests healthier pricing discipline compared with prior industry cycles. The company’s focus on “profit pillars” rather than low-margin volume growth could help sustain earnings even if industry demand moderates over time. For the full year, Ford raised its overall adjusted EBIT guidance to $8.5-$10.5 billion, up from previous guidance of $8-$10 billion.
However, Ford continues to fund modernization, connectivity and new product programs while expanding electrification and services. The company expects 2026 capital expenditures of $9.5-$10.5 billion, up from $8.8 billion in 2025. With additional spending tied to EV development and interim supply-chain costs, cash conversion can remain uneven through the cycle.
The Zacks Consensus Estimate for F’s 2026 EPS implies year-over-year growth of 50.5%. EPS estimates for 2026 and 2027 have improved by 4 cents and 2 cents, respectively, in the past 30 days.
Image Source: Zacks Investment Research
The Case for Stellantis StockIndustrial costs remain a tailwind for Stellantis, supported by higher production volumes, improved manufacturing efficiency and ongoing product cost optimization initiatives. For 2026, Stellantis projects mid-single-digit revenue growth, a low-single-digit adjusted operating income margin and year-over-year improvement in industrial free cash flow.
On May 21, 2026, Stellantis launched its FaSTLAne 2030 strategy, outlining a €60 billion five-year plan aimed at accelerating growth, improving profitability and enhancing shareholder returns. The company targets revenue growth from €154 billion in 2025 to €190 billion by 2030, a 7% adjusted operating income margin by 2030, positive industrial free cash flow in 2027 rising to €6 billion by 2030, and €6 billion in annualized cost savings by 2028 through its Value Creation Program.
Stellantis also expanded its collaboration with Qualcomm Technologies to integrate Snapdragon Digital Chassis chips with its STLA Brain software platform, strengthening cockpit, connectivity and ADAS capabilities while supporting faster product launches, continuous software upgrades and greater cost efficiency through platform standardization.
Stellantis launched its affordable E-Car project, with production expected to begin in 2028. The fully electric vehicle targets Europe's shrinking affordable small-car segment and will feature advanced BEV technology developed with partners to enhance affordability and accelerate commercialization.
However, Stellantis continues to face significant raw material cost volatility. Based on prevailing market prices, the net impact after hedging could approach 1% of annual revenues, with raw material costs potentially adding more than €1 billion in expenses during 2026.
The Zacks Consensus Estimate for STLA’s 2026 EPS implies year-over-year growth of 214.6%. EPS estimates for 2026 and 2027 have fallen 4 cents and 12 cents, respectively, in the past 30 days.
Image Source: Zacks Investment Research
Price Performance of F & STLAIn the last six months, shares of Stellantis have plunged 42.5%, while Ford shares have risen 5.8%. While F has outperformed the Zacks auto sector, Stellantis has underperformed the same.
6-Month Price Performance Comparison
Image Source: Zacks Investment Research
ConclusionFord is delivering profitable growth through its high-margin Ford Pro business, favorable vehicle mix, disciplined pricing strategy and improving earnings outlook. Ford is also set to benefit from upward EPS estimate revisions and positive share price momentum.
On the other hand, Stellantis' long-term growth depends on ambitious strategic initiatives that are still in the early stages. Also, Stellantis faces downward earnings revisions, raw material cost pressures and weaker stock performance.
Although Ford and Stellantis carry a Zacks Rank #3 (Hold) each at present, Ford appears to be the stronger investment choice based on its current execution and earnings visibility. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Kanadský odborový svaz Unifor zahájil jednání s Fordem o nové smlouvě pro téměř 19 000 členů trojice automobilek z Detroitu. Cílem je vyšší mzda, jistota práce a benefity.
A Ford logo on a Ford F-150 pickup truck for sale in Encinitas, California, U.S. October 20, 2025. REUTERS/Mike Blake/File Photo Purchase Licensing Rights, opens new tab
CompaniesDETROIT, June 22 (Reuters) - Canadian auto union Unifor began negotiations with Ford Motor (F.N), opens new tab on Monday, commencing talks on new contracts with the so-called Detroit Three of Ford, General Motors (GM.N), opens new tab and Stellantis (STLAM.MI), opens new tab to try to improve pay, job security and benefits for its nearly 19,000 members at those companies.
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Existing collective agreements between Unifor and the Detroit Three automakers expire on September 20.
The union began the negotiations with Ford because the automaker has been most committed to continuing its operations in Canada, the union said.
Unifor set a deadline of July 10 to reach a deal with Ford, which it will then take to the other two automakers.
The union said it has begun talks earlier than usual because economic conditions are unlikely to improve in the coming months and could worsen.
Canada faces significant U.S. tariffs pending negotiations around the future of the U.S.-Canada-Mexico trade agreement.
Nearly 6,000 workers have been laid off across plants owned by the three automakers as the companies have shifted or paused production at several facilities.
Reporting by Nora Eckert in Detroit Editing by David Goodman
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Nora Eckert reports on the automotive industry from Detroit. She covers Ford, GM, Stellantis and the United Auto Workers, with a focus on the industry's transition to EVs. She was previously a reporter for The Wall Street Journal in Detroit, where she broke news on major automakers and the UAW. She was earlier part of a WSJ investigations team that was recognized as a finalist for the 2021 Pulitzer Prize. Nora began her career as an investigative reporter with the Rochester Post Bulletin in Minnesota, where she focused on the state's organ transplant system and prisons.
General Motors a Lockheed Martin podepsaly memorandum o spolupráci na rozšíření americké obranné výroby. Cílem je rychlejší a vyšší produkce munice a dalších obranných produktů.
Key Takeaways General Motors and Lockheed Martin signed an MOU to expand U.S. defense manufacturing capabilities.GM Defense brings manufacturing expertise as the partnership targets faster, higher-rate production.Lockheed Martin plans a $9B facility and supply network investment through 2030 to support capacity. General Motors Company (GM - Free Report) has partnered with defense contractor Lockheed Martin to expand U.S. defense manufacturing capabilities, with the collaboration facilitated by the U.S. Department of Defense. The companies aim to increase production capacity for munitions and other defense products by improving production readiness, strengthening supply chains and leveraging advanced manufacturing and design technologies.
The partnership, currently governed by a memorandum of understanding, is in its early stages, with future contract opportunities yet to be defined. It will focus on high-rate manufacturing to increase the speed, scale and resilience of the U.S. defense industrial base.
Lockheed Martin plans to invest $9 billion through 2030 to modernize 20 facilities and strengthen its supply network. Separately, GM is investing $9 billion in capital expenditures and $7 billion in research and development across its business this year, though it has not disclosed investment plans for GM Defense.
Reestablished in 2017, GM Defense serves customers including the U.S. Army, the Secret Service and NASA, building on GM's history of manufacturing military vehicles during World War II. Per Bruce Brown, vice president of strategy at GM Defense, the collaboration combines the manufacturing expertise of both companies to strengthen the nation's defense industrial base.
The announcement comes as the Trump administration encourages greater domestic manufacturing and has held discussions with major automakers about supporting U.S. defense production.
GM’s Zacks Rank & Key PicksGeneral Motors currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited (GELHY - Free Report) , Garrett Motion Inc. (GTX - Free Report) and Douglas Dynamics, Inc. (PLOW - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GELHY’s 2026 sales and earnings implies year-over-year growth of 77.1% and 40.3%, respectively. The EPS estimate for 2026 and has improved 18 cents and 7 cents, respectively, over the past 30 days.
The Zacks Consensus Estimate for GTX’s 2026 sales and earnings implies year-over-year growth of 5.6% and 20.4%, respectively. The EPS estimate for 2026 has improved 14 cents over the past 60 days, while the EPS estimate for 2027 has improved 6 cents over the past 30 days.
The Zacks Consensus Estimate for PLOW’s 2026 sales and earnings implies year-over-year growth of 16.7% and 31.4%, respectively. The EPS estimate for 2026 and 2027 has improved 39 cents and 29 cents, respectively, over the past 60 days.
Ford a GM míří do energetiky: Ford chce vyrábět baterie pro ukládání elektřiny pro datová centra a polovodičové továrny na AI, GM zkouší vehicle-to-grid, recyklaci baterií i sodíkové články.
Ford Motor Company (F 0.36%) stock took off like a rocket last month, climbing 45% in the last two weeks of May. Ford's given back about half those gains in the June stock sell-off, but why did Ford stock put pedal to metal in the first place?
Because all of a sudden, Ford has decided it's an energy stock.
Image source: Getty Images.
Ford Motor is electric A little over three years ago, Ford secured a license from China's Contemporary Amperex Technology Co., or CATL, which permits Ford to manufacture batteries using CATL technology. The original plan, of course, was to make these batteries for Ford electric vehicles (EVs). But now that EV demand in the U.S. has collapsed, and demand for electrical power to run artificial intelligence (AI) data centers has exploded, Ford has struck upon a new idea for how to use its technology license:
Ford will manufacture batteries to store electricity for use by data centers and AI semiconductor factories.
Ford announced the plan in January 2026, promising to build batteries at factories in Kentucky and Michigan, and use them to create a "battery energy storage business." Production would begin in mid-2027, rapidly ramping to produce 20 gigawatt-hours of batteries annually and generating as much as $5 billion in new energy storage revenue by 2030.
Wall Street already loves the idea. In mid-May, Morgan Stanley predicted energy could generate between $500 million and $600 million in annual operating profit for Ford.
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General Motors charges in It was this prediction, by the way, that sparked Ford stock's amazing run last month -- and it seems the lesson wasn't lost on Ford archrival General Motors (GM +1.11%). Last week, GM announced it has a few energy ideas of its own.
GM's first idea isn't exactly original: "vehicle-to-grid" electricity in which owners of GM EVs can plug them into the grid to support the grid during peak demand -- essentially a system of distributed energy storage. GM said last week it is seeking to partner with utility companies on such a project and is already in talks with utility companies in California and Michigan.
Separately, GM is partnering with privately held Redwood Materials to reuse or recycle old EV batteries for utility-scale energy storage.
Finally, GM said it's working on a new battery chemistry that centers on more common (and cheaper) sodium rather than lithium. The new sodium-ion technology has other advantages over lithium-ion batteries -- not requiring cooling to operate at full efficiency, for example -- and may also be simpler and more reliable. GM says it's partnering with Denver-based energy storage start-up Peak Energy to produce sodium-ion batteries beginning sometime after 2028.
This all sounds a bit more scattershot than Ford's simple approach: Build a factory to manufacture batteries, then assemble those batteries into energy storage systems. Then again, the more bets GM makes, the more chances that one of them may strike it rich!
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How rich, exactly? Wall Street's optimism aside, though, how does the math on all this work?
Let's take Ford's estimated "$5 billion" in 2030 battery energy storage revenue, for example. According to data from S&P Global Market Intelligence, Ford currently earns about a 0.8% operating profit margin on its revenues, implying $5 billion in extra revenue might earn Ford an extra $40 million.
That's hardly a large payoff for a new business that will take five years to build!
GM's 6.6% operating profit margin, in contrast, seems to offer more potential for profit should any of the company's several energy bets pay off. Still, there's the question of whether GM is better advised to keep earning 6.6% margins by selling trucks or try to earn even more by selling energy storage? How good a bet is that?
For context, consider the bet Tesla (TSLA 0.04%) made back when it began its own "energy generation and storage" business by buying SolarCity back in 2016. Over the past decade, this business has grown from $1.1 billion in annual revenue to $12.8 billion while also generating very respectable profit margins. In 2017, Tesla EGS earned a 21.7% gross profit margin that has since grown to nearly 30% in 2025.
Long story short, Tesla's energy business today generates nearly twice the gross margin of its EV business. If Ford and GM can accomplish anything similar, it should be well worth the effort.
GM uvedla, že téměř 90 % kódu jejího týmu pro autonomní řízení vytváří umělá inteligence. Nový systém Super Cruise má debutovat v modelu Cadillac Escalade IQ v roce 2028.
CEO Mary Barra dropped a number on General Motors (NYSE:GM | GM Price Prediction) Q1 2026 earnings call that should make every investor in the autonomous vehicle race pay attention. “Today, nearly 90% of the code written by our autonomy team is generated by AI,” the CEO said. She framed it as proof of “how seriously we’re embracing AI across the enterprise.” This is safety-critical software being machine-written at scale.
The 90% applies to GM’s autonomy team specifically, not all of GM’s code base. It powers the next-generation eyes-off, hands-off Super Cruise system targeted to launch on the Cadillac Escalade IQ in 2028. This is pre-launch code, not yet in customer cars. The validation regime is what investors should focus on.
GM’s answer to the “can you trust AI-written autonomy code” question is volume-based testing. Barra told analysts the company is stress testing in a digital environment capable of simulating roughly 100 years of human driving every single day. Supervised on-road testing is underway in California and Michigan.
The leading indicator is Super Cruise. Customers have logged 1 billion hands-free miles, and the product is on pace to exceed 850,000 subscribers by year-end, with renewal trends in the 30% to 40% range. CFO Paul Jacobson said attachment rates after the free trial sit near 40%, calling himself “very optimistic” about the conversion math.
The Financials Back the Bet GM has the cash flow to fund aggressive AI tooling investment. Q1 adjusted EPS came in at $3.70 versus the $2.6393 estimate, a 40% beat, the fourth consecutive quarter beating Wall Street EPS forecasts. EBIT-adjusted hit $4.25 billion, up 22% year over year, with margin expanding 2 percentage points to 10%. Management raised full-year adjusted EPS guidance to $11.50 to $13.50.
Digital services show the same strength. OnStar revenue topped $750 million in Q1, up more than 20% year over year, with calendar-year revenue expected to reach $3.1 billion and deferred revenue approaching $7.5 billion.
The Industry Context Cuts Both Ways Barra’s announcement comes as two U.S. senators are urging NHTSA to review Tesla’s self-published Full Self-Driving crash statistics and European regulators accuse Tesla of “misleading data” on FSD safety. Tesla’s robotaxi fleet in Texas sits at 69 vehicles versus Waymo’s 620. GM is positioning its AI-written, simulation-validated approach as the disciplined alternative, though a single high-profile failure of machine-generated safety code would carry significant reputational risk.
The market has rewarded the pitch. GM shares are up 66% over the past year and 9% in the past month, trading at $80.04 against an analyst target of $94.81 and a forward P/E of 7. The 2028 Escalade IQ launch is the verdict event. Until then, Barra’s question remains open: when 90% of safety-critical autonomy code is machine-written, what is the right confidence threshold?
GM ve své továrně Factory Zero nasadila 50 cobotů a současně dočasně propustila více než 1 000 pracovníků, což vyvolalo ostrou kritiku odborů. Automobilka tvrdí, že jde o dočasné propuštění a krok ke zvýšení bezpečnosti a konkurenceschopnosti.
General Motors has gutted its electric-vehicle ambitions and sidelined more than 1,000 jobs at its flagship Detroit assembly plant — while adding 50 robots, sparking outrage from labor unions.
The “collaborative robots,” or “cobots,” have been installed on the assembly line at GM’s Factory Zero plant in Michigan amid a sharply reduced demand for its EV models and the ensuing push to cut costs, reports said.
The machines are now working alongside the remaining humans there who attach the body panels to vehicles as they move down the track, according to AutoBlog.
“Cobots,” or “collaborative robots,” are now working alongside employees on the assembly line at GM’s flagship Detroit plant. AP The automaker insists the cobots are not replacements to human workers and are actually necessary at the Detroit-Hamtramck electric-truck plant to stay competitive while improving “safety and ergonomics” for the workers, according to Crain’s Detroit Business and a company spokesman.
“We’ve been installing cobots across our manufacturing footprint as part of a broader push to bring more advanced technology into our operations,” spokesman Kevin Kelly said.
“At Factory ZERO, we are implementing them alongside our team — helping improve safety and ergonomics, while keeping our operations flexible and competitive,” he said, adding that the workers let go are only temporarily laid off.
Kelly did not specify when those workers might eventually return to work.
But United Auto Workers Local 22 president James Cotton isn’t buying it, saying the machines are simply a cost-cutting measure that is taking jobs from his union members.
“Our manpower is being taken away from us,” Cotton said, according to Crains.
“From top to bottom, we’re disgusted that they have cobots in our plants,” he said.
Union workers protest being sidelined for machines. AP
More than 1,000 workers were let go while the company installed 50 robots shortly after. Reuters The number of labor hours required to produce a car has declined 50% to 70% since the 1980s, Crains reported.
But that hasn’t stopped UAW wages from going up. The union was able to make historic wage gains in 2023, and the union will likely seek stronger protections in its upcoming 2028 contract negotiations, the outlet said.
Cotton said that despite the company’s claim of the technology making conditions safer, he has safety concerns with robots working next to humans and noted the union has since filed grievances against GM over the cobots.
The automaker claims the cobots are necessary to stay competitive while improving “safety and ergonomics.” AP The cobots arrived as GM is getting hammered by slowing EV demand — largely because of the costs, according to AAA — with the automaker pausing production at Factory Zero multiple times over the past year.
In response to GM’s heavy automation push and cobot installation, UAW president Shawn Fain said workers are “in a fight for humanity,” reported the News Tribune.
“The fruits of our labor have multiplied like never before, but workers aren’t reaping the harvest,” he said, according to the outlet.
“And if AI continues to be used as an accessory to that crime, it has to be stopped — it doesn’t have to be this way — in a just society, when workers create more value, they see more of the benefit.”
In the first quarter of 2026, GM reported $4.25 billion in profits, up 22% from the same period the previous year, according to Yahoo! Finance.
Home Depot v 1. čtvrtletí zvýšil tržby o 4,8 % na 41,8 mld. USD, ale srovnatelné tržby vzrostly jen o 0,6 % kvůli slabé poptávce. Hrubá marže klesla na 33 %, firma však potvrdila celoroční výhled.
Key Takeaways Home Depot's Q1 sales rose 4.8% y/y to $41.8B, while comps inched up 0.6% amid subdued demand.Home Depot's gross margin fell 75 bps to 33%, but management reaffirmed its full-year margin guidance.Pro sales outpaced DIY demand, supported by digital growth, market-share gains and acquisitions. The Home Depot Inc.’s (HD - Free Report) ability to sustain margin strength is becoming increasingly important as demand across the home improvement sector remains subdued. In the first quarter of fiscal 2026, the company reported sales growth of 4.8% to $41.8 billion, while comparable sales inched up 0.6%, reflecting a demand environment that management described as largely unchanged from fiscal 2025. Housing affordability pressures, elevated mortgage rates, and muted large-scale remodeling activity continue to weigh on customer spending.
Despite these headwinds, Home Depot is demonstrating resilience through operational execution and strategic investments. The company continues to gain market share, supported by strength in professional customers, digital sales growth exceeding 10% and expanding capabilities through acquisitions such as SRS, GMS and Mingledorff’s. Management highlighted that Pro sales outperformed DIY demand, with complex purchase occasions showing strongest growth, underscoring the effectiveness of its “winning the Pro” strategy.
From a margin perspective, the fiscal first-quarter gross margin declined 75 basis points (bps) to 33% due to the GMS acquisition and pricing investments at SRS. However, management emphasized that the core Home Depot business maintained a stable margin profile, while reaffirming its full-year gross margin guidance of 33.1% and the adjusted operating margin outlook of 12.8-13%.
The key question is whether margin stability can compensate for sluggish demand. While disciplined cost management, operational efficiencies and a richer Pro mix can help protect profitability, sustained earnings growth will ultimately require stronger project demand. For now, Home Depot’s margin resilience, market-share gains and strategic expansion provide a meaningful buffer against demand challenges, allowing the company to navigate a prolonged housing downturn while positioning itself for growth.
How Are LOW & WSM Faring in Terms of Profit Margins?While Home Depot has long been known for its strong profitability, investors are also closely watching how peers Lowe’s Companies Inc. (LOW - Free Report) and Williams-Sonoma Inc. (WSM - Free Report) are performing on the margin front amid a challenging demand environment.
Lowe’s is facing weak DIY demand, elevated rates and low housing turnover, but margin discipline is helping cushion the pressure. In first-quarter fiscal 2026, comps rose 0.6%, while the gross margin fell 70 bps to 32.7% due mainly to acquisition dilution. SG&A leveraged 17 bps, supported by cost controls and productivity initiatives. Management reaffirmed its 11.6-11.8% adjusted operating margin outlook, signaling confidence despite demand challenges.
Williams-Sonoma is demonstrating that strong margins can help offset broader demand uncertainties. In first-quarter fiscal 2026, the company posted a 4.8% comps increase and delivered an operating margin of 16.2%, exceeding expectations despite absorbing higher tariffs and fuel costs. Supply-chain efficiencies, disciplined cost management and strong full-price selling helped mitigate margin pressures. While management remains cautious about the macro environment, its profitability and execution provide a meaningful cushion against demand volatility.
HD’s Price Performance, Valuation & EstimatesShares of Home Depot have lost 3.1% in the past six months versus the industry’s decline of 4.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, HD trades at a forward price-to-earnings ratio of 21.6X compared with the industry’s average of 19.95X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for HD’s fiscal 2026 and fiscal 2027 EPS implies year-over-year growth of 4.2% and 2.2%, respectively. The company’s EPS estimates for fiscal 2026 and 2027 have moved down 0.3% and 0.9%, respectively, in the past 60 days.
Image Source: Zacks Investment Research
Home Depot currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Goldman Sachs letos zatím poradil na více než 1 bilionu USD v oznámených transakcích fúzí a akvizic, což je rekordní tempo. Silnější aktivita už zvedla příjmy z investičního bankovnictví o 48 % meziročně v 1. čtvrtletí 2026.
Key Takeaways Goldman has advised on a record more than $1 trillion worth of M&A deals so far in 2026.Many announced deals are likely to close in 2H 2026, supporting Goldman's advisory fee growth.Goldman's IB fees rose 48% year over year in Q1'26, driven by stronger advisory activity. The Goldman Sachs Group Inc.’s (GS - Free Report) investment banking (IB) business is regaining momentum as global dealmaking activity continues to recover.
According to Dealogic data, Goldman has advised more than $1-trillion worth of announced mergers and acquisitions (M&A) so far in 2026, marking a record pace for any investment bank within a half-year period. This represents a 71% increase from the comparable period in 2025, underscoring the sharp rebound in corporate transaction activity after several years of subdued dealmaking.
Global M&A activity reached $2.73 trillion so far this year, up 38% year over year, with Goldman advising on deals representing more than 40% of the total announced transaction value. JPMorgan (JPM - Free Report) and Morgan Stanley (MS - Free Report) ranked second and third, respectively JPMorgan advised on $687.5 billion of transactions, whereas Morgan Stanley followed with $575.9 billion of deals.
Global M&A Advisor Ranking
Image Source: Dealogic
Last month, at the Bernstein Strategic Decisions Conference, Goldman indicated that it expects global M&A volume in 2026 to exceed the 2021 record and reach $3.8 trillion. The optimistic outlook reflects improving corporate confidence, easing financing conditions and renewed boardroom appetite for strategic growth. A broader return of private equity activity could provide an additional boost, as sponsors look to deploy capital, pursue portfolio exits and monetize assets after a slower transaction environment.
Stronger Fee Pipeline for GoldmanGS’s large M&A advisory pipeline is particularly important because investment banks typically earn advisory fees when transactions close. While fee rates vary based on deal size, complexity and client relationships, large-scale transactions can generate significant advisory revenues. Therefore, the firm’s more than $1 trillion in announced advised M&A volume provides a visible pipeline of potential fee income over the coming quarters. This commanding lead is translating directly into higher advisory revenues.
The timing of fee realization is important. Announced deal volume does not translate immediately to revenues, as advisory fees are generally recognized upon deal completion. However, with many of Goldman’s advised transactions expected to close during the second half of 2026, the current pipeline offers meaningful visibility into future investment banking revenues. This could help sustain advisory fee growth even if the pace of new deal announcements moderates later in the year.
The recovery is already visible in Goldman’s recent results. In the first quarter of 2026, advisory revenues rose 89% year over year on higher completed M&A volumes, supporting investment banking fee growth of 48%. If the current announced-deal pipeline converts into completed transactions, advisory revenues could remain a meaningful growth driver through the remainder of 2026, supporting profitability and top-line growth.
Goldman’s Price Performance & Zacks RankGS shares have gained 71.7% in a year compared with the industry growth of 32.7%.
Price Performance
Image Source: Zacks Investment Research
Goldman currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Goldman Sachs čeká, že tržby z obchodování s akciemi zůstanou ve 2. čtvrtletí nad 5 miliardami USD po rekordním 1. čtvrtletí. Podporuje to volatilita trhu a silná aktivita institucionálních klientů.
Key Takeaways Goldman's equities trading revenues are projected to stay above $5B in Q2'26 after a record Q1.GS is benefiting from market volatility, institutional activity and stronger capital market trends.Goldman expects trading momentum, improving M&A pipeline and capital markets to support Q2 results. The Goldman Sachs Group, Inc. (GS - Free Report) appears well-positioned to deliver another solid quarter, with its equities trading business continuing to benefit from elevated market volatility and strong institutional client activity. According to a Seeking Alpha report published on MSN, following the strong first quarter, current trends indicate that equities trading revenues will likely remain above the $5-billion mark in the second quarter of 2026, reinforcing the strength of the company’s core Global Banking & Markets business.
Goldman entered 2026 with significant strength in its Global Banking & Markets segment. In the first quarter, equities trading revenues jumped 27% year over year to a record $5.33 billion. The rise was driven by heightened market volatility, which accelerated client demand for hedging strategies, portfolio repositioning, prime brokerage services and equities financing. Unlike more cyclical businesses, trading operations benefit directly from increased market activity, allowing Goldman to capitalize on higher client volumes across institutional segments.
The exceptional performance in equities trading was the primary contributor to the 19% year-over-year increase in Global Banking & Markets revenues, which reached $12.74 billion in the first quarter. Importantly, market conditions that supported this performance have largely persisted into the second quarter. Institutional investors have been active amid macroeconomic uncertainty, while AI-related investment themes continue to generate strong trading volumes, particularly across Asian markets, where hedge fund participation has been elevated.
A second consecutive quarter with equities trading revenues above $5 billion would be notable, given the business's operating leverage. Increased client activity typically drives revenue growth without a corresponding rise in expenses, supporting margin expansion and earnings growth.
Overall, Goldman is benefiting from multiple growth drivers, including sustained trading momentum, improving capital market activity and a strengthening M&A pipeline. These trends are expected to support revenue growth, enhance profitability and reinforce the firm's earnings outlook, positioning second-quarter 2026 to be another strong quarter for the company.
Major Banks See Rebound in IB & Markets ActivitiesSimilar to Goldman, JPMorgan (JPM - Free Report) and Wells Fargo (WFC - Free Report) expect their investment banking (IB) and trading businesses to perform well in the second quarter of 2026, driven by improving deal pipelines and stronger capital market activity.
JPMorgan indicated that second-quarter IB fees could rise 10% or more year over year. JPMorgan noted that its markets business is also on track to grow 11% in the second quarter and could perform "a little better" than that forecast.
Wells Fargo’s IB and trading revenues are projected to increase year over year in the mid-teen percentage range in the second quarter of 2026. Wells Fargo expects wealth management revenues to grow year over year in the low-double-digit percentage range.
Goldman’s Price Performance & Zacks RankGS shares have surged 63.4% in the past year compared with the industry’s growth of 29.2%.
Image Source: Zacks Investment Research
Goldman currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Starbucks (SBUX +1.80%) may be on the verge of a major expansion, one that investors should note.
The global coffee giant currently operates more than 40,000 stores in 88 markets on six different continents (it has yet to establish an outpost in Antarctica).
More than 22,000 of those stores are outside the U.S. and Canada, a number that could increase substantially in the coming years, according to the company's CEO.
At the Evercore Consumer and Retail Conference in New York this week, Starbucks CEO Brian Niccol said the company can grow aggressively outside the U.S., claiming it could double its store count in other countries. He said that in China alone, the company will go from 8,000 stores today to 20,000 stores "in short order."
Niccol also said Starbucks is looking to open an additional 10,000 stores in the U.S., particularly in underpenetrated areas in the middle of the country, as today the company has a coastal bias.
Image source: Getty Images.
The company began as a single store in Seattle in 1971, selling whole bean coffee, tea, and spices.
The turnaround seems to be working Starbucks' share price is up 20% so far in 2026, after several difficult years when it moved sideways to slightly down, due to flagging sales and a loss of customers who were tired of the coffee chain's long waits and inconsistent product quality, among other problems.
Niccol, a former CEO at Chipotle, was hired in 2024 to turn the business around, and he seems to be having some success this year.
Among other changes in his "Back to Starbucks" strategy, Niccol cut almost 2,000 corporate workers from its payroll and closed hundreds of underperforming locations. He also had the company invest in stores to increase the timeliness and quality of orders.
In the second quarter (ended March 29), the company increased revenue 9% year over year to $9.5 billion and boosted earnings 14.5% to $0.50 a share. Both figures beat Wall Street's expectations, sending the stock higher. The quarter was the second consecutive period that the company saw traffic growth at its locations. Management also increased full-year guidance for 2026.
The stock is up about 5% since the second quarter results were announced.
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Niccol's turnaround is just a few quarters old, of course, but it looks like the strategy is gaining traction, and the market recognizes it. If his plan to double the international store count comes to fruition, investors might be very happy they invested $1,000 in the stock today.
Procter & Gamble vykázal ve fiskálním 3. čtvrtletí core EPS 1,59 USD a tržby 21,235 miliardy USD, zatímco Colgate-Palmolive oznámil upravené EPS 0,97 USD a tržby 5,324 miliardy USD. P&G zároveň nabízí vyšší dividendový výnos 2,83 % a má za sebou 70 let po sobě jdoucího zvyšování dividend.
Procter & Gamble (NYSE:PG | PG Price Prediction) and Colgate-Palmolive (NYSE:CL) both just reported, and the earnings reports sharpened a debate dividend investors have been having for years.
P&G posted its fiscal Q3 2026 with core EPS of $1.59 on net sales of $21.235 billion. Colgate followed with Q1 2026 adjusted EPS of $0.97 on revenue of $5.324 billion. Both lean on staples brands. Only one runs the bigger dividend machine.
Tide and Pampers Carry P&G. Hill’s and Latin America Carry Colgate. P&G’s quarter looked broad. Beauty grew 11% reported, Grooming added 7%, and Fabric & Home Care delivered $7.403 billion in sales. CEO Shailesh Jejurikar called it “a solid acceleration in top-line results… with broad-based growth across product categories and regions.”
Tide, Pampers, and Gillette did the heavy lifting, and pricing only contributed one point of organic growth, which tells me volume is finally pulling its weight again.
Dividend Lens P&G Colgate Consecutive annual hikes 70 63 Indicated yield 2.83% 2.33% FY dividends to shareholders ~$10B expected FY26 $1.823B paid in 2025 Trailing P/E 22x 35x Colgate’s mix was lumpier. Oral, Personal and Home Care rose 8.9% to $4.131 billion, and Hill’s Pet Nutrition added $1.194 billion. Latin America organic sales jumped 5.4% and Asia Pacific led at 5.6%.
North America was the sore spot, down 1.8% with volume off 3.2%. Noel Wallace leaned on resilience language, noting the team is “able to execute against our long-term strategy while delivering strong results in a difficult operating environment.”
Scale Versus Reinvention P&G is playing defense on cost. Management flagged roughly $400 million in after-tax tariff drag plus $150 million in commodity headwinds, and core gross margin slipped 100 basis points. The buyback is still real, with over $600 million repurchased in Q3 and roughly $5 billion planned for FY26. Free cash flow productivity sits in the 85% to 90% range.
Colgate is rewiring itself. The expanded Strategic Growth and Productivity Program now carries pretax charges of $350 million to $550 million with targeted annual savings of $200 million to $300 million.
Gross margin guidance was revised lower because of tariffs, while advertising rose to $734 million from $668 million. The most recent dividend ticked up to $0.53 per share. Growth is real, but the restructuring bill is climbing.
The Next Test Is Margin Recovery I want to see whether P&G can hold its $6.83 to $7.09 core EPS guide as tariffs bite. Colgate needs a North America turn, where Speed Stick, Tom’s of Maine, and the core Colgate brand have been ceding shelf to private label. Hill’s matters too. Pet food is still the cleanest growth lane in this comparison, and any volume slowdown would dent the bullish case.
Why I Lean Toward P&G for the Income Sleeve If you want a dividend with the fewest moving parts, I would lean toward P&G. The 136-year payment streak, deeper free cash flow, and a 10-year total price return of 141.11% all argue for staying with scale.
Colgate is the more interesting setup if you believe the SGPP cuts work and Hill’s keeps compounding. At 35x trailing earnings, though, the stock is paying you the lower yield for the harder turnaround. For me, the better dividend stock right now is P&G, and I would only switch if Colgate’s North America volumes inflected positively for two straight quarters.
Key Takeaways RCL expects fuel rates to reduce adjusted EPS by 62 cents for the remainder of 2026.Royal Caribbean sees net cruise costs, excluding fuel, to be approximately flat for the full year.RCL projects a full-year fuel expense of about $1.35B, with 59% of the remaining 2026 fuel hedged. Royal Caribbean Cruises Ltd. (RCL - Free Report) is working to protect 2026 earnings as higher fuel prices create a meaningful cost headwind. The company expects fuel rates to reduce adjusted earnings per share (EPS) by 62 cents for the remainder of the year, while lower expected earnings contribution from TUI Cruises adds another 12-cent drag. Full-year fuel expense is projected to be approximately $1.35 billion, with about 59% of the remaining 2026 fuel consumption hedged at rates meaningfully below market levels.
The earnings outlook is supported by continued cost discipline. RCL expects net cruise costs, excluding fuel, to be approximately flat for the full year, or 50 basis points better than its prior guidance. The company continues to focus on efficiency improvements, prudent expense management, technology, supply-chain initiatives and operating processes while maintaining the quality of the guest experience.
The second-quarter outlook provides an important checkpoint for the cost-control case. RCL expects net cruise costs, excluding fuel, to rise 4.6% to 5.1% in constant currency. The increase includes nearly 400 basis points of headwinds tied to additional dry dock days, year-over-year comparisons and higher crew travel costs caused by air travel disruptions and reduced airline capacity.
RCL’s ability to protect 2026 earnings will likely depend on whether it can sustain efficiency gains while delivering moderate capacity growth, yield growth and disciplined expense management. Cost controls may not fully neutralize the 62-cent fuel hit, but they can help limit the earnings impact and support the company’s ability to deliver double-digit adjusted EPS growth in 2026. For 2026, Royal Caribbean expects adjusted EPS of $17.10-$17.50.
How RCL Stacks Up to CompetitorsCarnival Corporation & plc (CCL - Free Report) is also facing fuel-related earnings pressure in 2026. Its guidance includes a 38-cent EPS headwind from higher fuel prices, which more than offsets an 11-cent operational improvement versus prior guidance. CCL expects full-year EPS of $2.21, with fuel assumptions based on Brent averaging $90 per barrel for the remainder of April and May, $85 per barrel in the third quarter and $80 per barrel in the fourth quarter. A 10% change in fuel cost per metric ton for the rest of the year would affect CCL’s bottom line by about $160 million, or 11 cents per share.
Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) is facing fuel pressure alongside a weaker earnings outlook. The company expects fuel expense of approximately $800 million based on current spot prices, although fuel expense would be about 6% lower if rates were based on the forward curve. Reflecting softer-than-expected top-line performance and higher fuel costs, NCLH reduced its full-year adjusted EBITDA guidance to $2.48-$2.64 billion and adjusted EPS guidance to $1.45-$1.79.
RCL’s Price Performance, Valuation & EstimatesShares of Royal Caribbean have gained 16.7% in the past year compared with the industry’s 8.8% growth.
RCL Stock’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, RCL trades at a forward price-to-earnings ratio of 16.92, above the industry’s average of 16.72.
RCL’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for RCL’s 2026 earnings implies a year-over-year uptick of 10.4%. The EPS estimates for 2026 have declined in the past 60 days.
EPS Trend of RCL Stock
Image Source: Zacks Investment Research
RCL’s Zacks RankRCL stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Royal Caribbean v prvním čtvrtletí zvýšila čistý zisk na 950 milionů USD a tržby na 4,45 miliardy USD, přičemž upravený zisk na akcii 3,60 USD překonal odhady. Firma zároveň potvrdila výhled růstu a pro rok 2026 čeká EPS 17,10 až 17,50 USD.
This is a fair market value price provided by Massive. Learn more.
52-Week Range$232.10▼
$366.50Dividend Yield1.85%
P/E Ratio19.63
Price Target$345.58
The cruise industry is rising, and Royal Caribbean Cruises NYSE: RCL is sailing along with it.
The Miami-based company, which reported double-digit increases in this year’s first three months, is projecting further growth through the end of this year.
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Analysts are positive on the direction of the stock. And the company is investing in the future with new destinations and a giant, new ship.
The combination of strong results and forward confidence is what most growth-oriented investors want to see.
But after a remarkable runup in share price over the past few years, is the timing right to get into the stock, or has the easy money already been made?
Royal Caribbean Delivers Another Strong QuarterSo far this year, the numbers are convincing. Royal Caribbean reported that net income in the first three months came in at $950 million, or $3.48 per diluted share, an increase of nearly 30% year-over-year.
Adjusted earnings were $1 billion, or $3.60 per share, topping analysts’ projections, thanks to strong demand and last-minute bookings coming in better than expected. Costs also ran slightly below forecast. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) were $1.7 billion from $1.4 billion in the year-ago period.
Overall revenue also saw a notable increase, rising 11% year-over-year, though slightly below analysts’ expectations. For the first quarter, revenue hit $4.45 billion, up from $4 billion a year earlier, and just under the $4.46 billion that analysts had projected.
Importantly, there was little sign that Royal Caribbean was filling its ships through aggressive discounting, which can help it hit revenue targets but erode profit margins in the process. Royal Caribbean’s numbers showed premium pricing holding firm and onboard spending, such as excursions, restaurants, and spa services, adding to the bottom line.
Management Expects Growth to ContinueWith the first quarter results, management continued to project growth for the year. 2025 was already impressive as the company reported adjusted net income of $4.3 billion, or earnings per share of $15.64, an increase of over 30% from the year before. Adjusted EBITDA was $7 billion, up 18% for the year.
Growth for this year is already evident. The company said passengers carried for the first quarter rose to 2.5 million, from 2.24 million a year earlier. Passenger cruise days were up to 14.9 million from 13.8 million. And the increase in passengers is expected to continue.
For full-year 2026, the company said it’s now looking at adjusted earnings per share in a range of $17.10 to $17.50 per share, representing likely double-digit growth. On a constant-currency net yield basis—an important measure in the industry to gauge revenue efficiency—the company is expecting growth of 1.5% to 2.5% for the full year.
Expansion Plans Support Long-Term StrategyPlans for further growth are also moving ahead. Royal Caribbean, already one of the world’s largest cruise vacation brands, has a fleet of 69 ships and is adding to that number. The company recently began work on a seventh Oasis-class ship, the largest class of cruise vessels, signaling confidence that demand for premium ocean travel will remain strong well into the next decade.
In addition, the company is pushing into more branded experiences that passengers can’t find with other cruise lines or by staying at premium, all-inclusive resorts. It is increasingly investing in private island destinations and branded experiences, including a hotel to help service Antarctica.
Analysts Still See More UpsideWall Street generally likes what it sees. Even with a significant increase in the price of the stock, analysts generally believe the earnings story has more room to run. The stock is up 12% this year and 16% over the past 12 months.
Of the 21 analysts following the stock, the overall consensus rates it a Moderate Buy. Fifteen analysts have tagged it a Buy, five suggest Hold, and one recommends Sell. With an average 12-month price target of $345.53, investors are looking at just over a 10% jump assuming the target is met. Other analysts, however, are tagging the target as high as $425, while the lowest price target is $280.
Valuation Leaves Less Room for ErrorRoyal Caribbean Cruises Dividend PaymentsDividend Yield1.93%
Annual Dividend$6.00
Dividend Increase Track Record1 Year
Annualized 5-Year Dividend Growth35.02%
Dividend Payout Ratio36.61%
Next Dividend PaymentJul. 2
RCL Dividend History
That potentially limited one-year upside is precisely the factor that investors should consider. The recovery story, post-pandemic, has already played out. Royal Caribbean shares are up a whopping 250% over the past five years.
The dividend yield sits just below 2%, which means this is not a stock to buy for income. It’s a company whose value depends on earnings growth, brand strength, and continued execution.
Risks for the industry are also ever-present. Cruises are planned for months in advance, which means any demand slowdown can show up in bookings well before it hits earnings. If U.S. consumers pull back on discretionary spending, whether because of job concerns, credit stress, or general uncertainty, premium bookings can compress very quickly.
Current projections have already been scaled back slightly for 2026 compared with the guidance the company gave at the start of the year. Changes and uncertainties in the global outlook, potential currency fluctuations, and evolving booking patterns led to the adjustment.
Growth Story Remains Strong, But Risks PersistStill, a leading company with revenue growth in the double digits, adjusted earnings per share of $3.60 beating guidance, and a healthy full-year outlook is not easy to ignore. These achievements are not simple for a company already operating from near-record highs.
And for growth investors comfortable with cycles, Royal Caribbean is among the better-run alternatives. The company’s pricing power, branded destination strategy, and continued earnings growth make it one of the more attractive stories in the travel sector.
But the current valuation already reflects the good news. Competition in the consumer discretionary sector from other major cruise lines, including Carnival NYSE: CCL and Norwegian Cruise Line NYSE: NCLH, is always steep. And the future spending power of consumers is forever prone to change. The question for investors is whether this is a stock whose ship has already sailed.
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PepsiCo v 1. čtvrtletí fiskálního roku 2026 zvýšila core EPS na 1,61 USD při tržbách 19,44 miliardy USD a zvedla provozní marži na 16,5 %. Firma zároveň potvrdila celoroční růst organických tržeb o 2 % až 4 %.
The headline number for this article is $180, and I want to address it head on before anyone scrolls further.
Our proprietary 24/7 Wall St. price target for PepsiCo (NASDAQ:PEP | PEP Price Prediction) is $170.18 over the next 12 months, with a clear path to $180 in the bull case as the World Cup activation, productivity savings, and convenient foods recovery compound through 2027. With shares at $142.02, that base case implies 19.83% upside.
Metric Value Current Price $142.02 24/7 Wall St. Price Target $170.18 Upside 19.83% Research View Constructive Confidence Level 90% A Defensive Name That Just Went on Sale PEP has fallen 4.42% over the past 30 days and 1.19% in the last week, partly reflecting hawkish Fed commentary that dimmed appetite for dividend stocks. Zooming out, shares are up 14.55% over the past year and Pepsi remains a Consumer Defensive anchor with a beta of 0.359.
Q1 FY2026 delivered core EPS of $1.61 on revenue of $19.44 billion, a 8.5% year-over-year gain. Operating margin expanded 210 basis points to 16.5%, and management reaffirmed full-year organic revenue growth of 2% to 4%. The next earnings catalyst lands on July 9, 2026.
Why Bulls See $180 by Mid-2027 Piper Sandler maintains an Overweight rating with a $178 price target, while TIKR’s longer-term model points to $208 by December 2030. Our bull case scenario lands at $177.28 by June 2027, with the $180 mark within reach if Q2 and Q3 earnings extend the Q1 beat streak.
Growth drivers are tangible. CEO Ramon Laguarta noted that PBNA grew 9% in Q1, and international markets are accelerating around the 2026 World Cup activation. PFNA added 300 million new consumption occasions versus the prior year.
Laguarta stated: “We’ve seen momentum in PBNA, both organic and reported…And sequential growth in PFNA.” Add a $10 billion buyback authorization, the 54th consecutive dividend hike, and active institutional buying, and the bull math works.
The Risks Worth Watching Tariff-driven commodity costs hit PBNA with an 11 percentage point impact in Q4 25, and FY25 operating income fell 19.57% on Rockstar and Be & Cheery impairments totaling $1.993 billion. Volume softness in convenient foods and slower snack consumption tied to GLP-1 adoption could pressure organic growth toward the bottom of the 2% to 4% range. Our bear case scenario stops at $152.27.
The FY25 impairments were one-time charges. Operating cash flow still came in at $12.087 billion, with FCF conversion guided above 80%. Bulls argue the impairments reflect aggressive portfolio cleanup rather than core business deterioration.
PepsiCo Price Prediction 2026-2030 The 24/7 Wall St. price target stands at $170.18 with 90% model confidence. Q1 delivered +8.5% revenue growth and a 210 bp margin expansion, yet shares trade closer to the 52-week low than the high.
The setup looks constructive for a low-beta compounder with a 4% yield and a clear path to $180 by 2027. The thesis weakens if Fed hawkishness continues penalizing dividend payers through the back half of 2026.
Here is where our model projects PEP could trade, assuming current growth trajectories and margin recovery hold.
Year 24/7 Wall St. Price Target 2026 $156 2027 $180 2028 $202 2029 $224 2030 $247 These projections assume PEP continues executing the productivity and innovation strategy Laguarta outlined, with the World Cup activation and poppi integration supporting beverage growth.
Significant upside or downside could result from sustained commodity inflation, faster-than-expected GLP-1 impacts on snack volumes, or larger buyback execution against the new $10 billion authorization.
Key Takeaways PayPal expanded Venmo P2P payments to hundreds of millions of users across 90 markets. Venmo TPV rose 14% year over year in Q1 2026, with its share of PayPal TPV increasing to 19%. Pay with Venmo grew 34% year over year as deeper merchant integration supports monetization. PayPal’s (PYPL - Free Report) Venmo is evolving from a peer-to-peer payments app into a meaningful revenue driver for PYPL. While peer-to-peer (P2P) transfers remain a core part of the platform, its future growth is increasingly driven by monetized products such as the Venmo Debit Card and Pay with Venmo. This strengthens Venmo's contribution to PayPal's broader consumer ecosystem.
In March 2026, Venmo announced a major expansion, extending its P2P payment experience to users worldwide. Venmo users can now send and receive money to and from hundreds of millions of PayPal users across 90 markets. This marks Venmo's largest market expansion since the app’s launch.
The results suggest that these initiatives are translating into stronger payment activity. Venmo’s total payment volume (TPV) increased 14% year over year in the first quarter of 2026, marking its sixth consecutive quarter of double-digit growth. Its share of PayPal's TPV expanded to 19% from 18% a year earlier. Pay with Venmo also remained a standout performer, growing 34% year over year and continuing to gain market share against competing payment methods.
For PayPal, Venmo has become more than a consumer engagement platform. The company is integrating Venmo more deeply into its merchant ecosystem. This enables consumers to pay with Venmo across a growing number of merchant checkouts and strengthens PayPal’s two-sided network of consumers and merchants.
If PayPal continues expanding the adoption of Pay with Venmo, the Venmo Debit Card and merchant checkout, Venmo could become a significantly larger revenue driver over time. With sustained double-digit payment growth and improving monetization, the platform appears well-positioned to support PayPal's long-term strategy of profitable, diversified growth.
How Are Block and Apple Faring in the Payments Space?Block (XYZ - Free Report) offers Cash App, a digital wallet, to consumers for P2P payments and investing. Management continues to expand Cash App beyond peer-to-peer transfers through products such as the Cash App Card, direct deposit, borrowing and integrated investing, increasing customer engagement and monetization. In first-quarter 2026, Cash App gross profit grew 38% year over year to $1.91 billion.
Apple (AAPL - Free Report) continues to broaden the utility of its payments ecosystem through Apple Pay, Apple Wallet and Tap to Pay, making the iPhone an increasingly important platform for both consumers and merchants. As payment adoption grows, these services help strengthen customer loyalty, support Services revenue growth and reinforce the value of Apple's broader hardware and software ecosystem.
PYPL’s Price Performance, Valuation & EstimatesShares of PayPal have declined 2.1% in the past three months, underperforming both the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
From a valuation standpoint, PayPal shares are trading cheaply, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 7.91X, which is at a significant discount to the Zacks Financial Transaction Services industry’s 17.28X.
Image Source: Zacks Investment Research
PayPal’s estimate revisions remain unchanged. The Zacks Consensus Estimate for full-year 2026 EPS is pegged at $5.30 over the past two months.
Image Source: Zacks Investment Research
PayPal currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Five sources told Fortune that the corporate venture arm, which was founded in 2016, will be winding down operations. A company spokesperson confirmed the news to TechCrunch, albeit with a nuanced statement:
“As part of our continued efforts to sharpen our focus, we are exploring strategic options for our corporate venture arm,” the spokesperson said in an email.
PayPal Ventures has made more than 80 investments, including the crypto trading platform Talos Global, fintech infrastructure company Plaid, and the crypto bank Anchorage Digital. It has raised $850 million across three funds.
PayPal Ventures still exists on paper and has a few employees supporting its portfolio of startups. However, it has paused new investment activity — at least for now.
The decision follows the departure of PayPal CEO Alex Chriss, who was replaced by Enrique Lores in February. The board said Chriss had failed to keep pace with industry changes and did not meet its expectations. Ironically, the end of PayPal Ventures could mean the company falls further behind. The venture arm gave PayPal a front-row seat to emerging fintech innovation; without it, the company risks losing visibility into startups shaping the future of financial services and falling behind competitors that maintain strategic venture arms.
Lores took the helm with the mission to restructure things, and he has done so, with more cuts and layoffs expected to continue throughout the next few years, Fortune reported. The outlet also said that PayPal is exploring secondary sales to offload some of its venture holdings and has hired Jefferies to help with that task. Lores said in the company’s first-quarter earnings call last month that it needed to “recommit to the fundamentals,” which included “becoming a technology company again.”
It’s clear the company wants to reposition itself in the ecosystem — particularly around AI — which means this may not be the final chapter for corporate venture investing at PayPal.
The PayPal Venture news also comes after the company reached a settlement in May with the Justice Department over the creation of an investment program back in 2020 that targeted Black and minority-owned businesses. Under the settlement, PayPal agreed to waive processing fees for $1 billion of transactions – a value of about $30 million, according to the DOJ. PayPal was also sued in January 2025 by an investor who claimed she was excluded from the investment program because she was Asian. That case looks to be headed toward trial, according to court documents.
This article has been updated to include more information about the portfolio and to clarify that new investments have been paused.
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
Dominic-Madori Davis is a senior venture capital and startup reporter at TechCrunch. She is based in New York City.
You can contact or verify outreach from Dominic by emailing [email protected] or via encrypted message at +1 646 831-7565 on Signal.
PayPal v 1. čtvrtletí 2026 zvýšil tempo růstu branded checkout TPV na 2 % po očištění o kurzové vlivy, z 1 % v předchozím čtvrtletí. Celkový TPV vzrostl o 8 % a tržby o 5 %.
Key Takeaways PayPal's branded checkout TPV grew 2% currency neutral in Q1 2026, up from 1% in the prior quarter.PYPL posted 8% currency-neutral TPV growth and 5% currency-neutral revenue growth in Q1 2026.PayPal is investing in checkout and sees U.S. improvement, while Europe remains softer. PayPal Holdings’ (PYPL - Free Report) branded checkout recovery is becoming one of the most important questions for PYPL investors. In the first quarter of 2026, online branded checkout total payment volume (TPV) grew 2% on a currency-neutral basis, improving from 1% in the prior quarter. While that is not a full turnaround yet, it signals that PayPal’s core checkout business may be stabilizing.
The company’s broader results provide some support for the recovery effort. TPV reached roughly $464 billion, up 8% on a currency-neutral basis, while revenues increased 5% currency neutral. PayPal also reported stronger Venmo and enterprise payment growth, showing that demand across the platform remains healthy even as branded checkout moves more slowly.
Management is trying to reaccelerate checkout through better execution. The new operating model places Checkout Solutions & PayPal under a clearer structure, combining consumer and merchant efforts. PayPal is also investing in checkout experience, merchant presentment, consumer selection, rewards and loyalty, especially around top merchants where conversion can matter most.
The challenge is that the recovery is uneven. Management noted improvement in the United States, but Europe remains softer, with pressure in markets such as the U.K. and slower growth in Germany. Macro softness, travel weakness, local competition and PayPal’s own execution gaps all appear to be weighing on momentum.
Branded TPV can reaccelerate, but likely gradually. PayPal’s trusted brand, large two-sided network, Venmo integration, BNPL strength and merchant reach remain real advantages. However, investors should watch if 2% growth becomes a trend, Europe stabilizes and checkout investments improve selection and repeat usage without creating too much margin pressure.
How Are Block and Adyen Competing?Block (XYZ - Free Report) , through Square and Cash App ecosystems, remains a significant competitor to PayPal in digital payments and merchant services. The company benefits from a large merchant base, integrated commerce solutions and growing consumer engagement. If PayPal’s branded checkout recovery remains gradual, Block could continue strengthening its competitive position among merchants seeking streamlined payment experiences.
Adyen (ADYEY - Free Report) is another key competitor benefiting from its global enterprise payments platform and strong relationships with large merchants. The company continues to expand internationally while emphasizing payment optimization and seamless checkout experiences. If PayPal’s branded checkout softness in Europe persists, Adyen could be well-positioned to capture additional payment volume from enterprise merchants.
PYPL’s Price Performance, Valuation & EstimatesShares of PayPal have declined 5.2% in the past three months, underperforming both the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
From a valuation standpoint, PayPal shares are trading cheaply, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 7.69X, which is at a significant discount to the Zacks Financial Transaction Services industry’s 16.90X.
Image Source: Zacks Investment Research
PayPal’s estimate revisions remain unchanged. The Zacks Consensus Estimate for full-year 2026 EPS is pegged at $5.30 over the past two months.
Image Source: Zacks Investment Research
PayPal currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Akcie Qualcommu klesly asi o 6 % kvůli výprodeji v technologickém sektoru, přestože Bloomberg uvedl pokročilá jednání o koupi společnosti Modular za zhruba 4 miliardy USD.
Qualcomm Inc. QCOM shares moved lower on Tuesday, falling about 6% in trading as a broader technology selloff weighed on sentiment, even as fresh reports pointed to an expansion of its artificial intelligence ambitions.
The decline came despite Bloomberg reporting that Qualcomm is in advanced talks to acquire AI infrastructure software company Modular Inc. in a deal valued at around $4 billion.
A transaction could be announced in the coming weeks, though sources emphasized that a final agreement is not guaranteed and terms could still change.
Qualcomm stock has been one of the stronger performers in the semiconductor space in recent months, rising 72% over the past three months and gaining around 30% year to date.
Investors have been positioning ahead of the company’s investor day on Wednesday, where Qualcomm is expected to provide updates on its next-generation processor strategy and potentially identify a major customer for a custom data-center chip.
Modular Inc., founded in 2022 in Silicon Valley by Chris Lattner and Tim Davis, former Google employees, focuses on building software tools designed to simplify the deployment of artificial intelligence models across different hardware systems and cloud environments.
According to its website, the founders created the company after becoming “frustrated by AI’s fragmented infrastructure.”
The startup has positioned itself in a growing segment of the AI market focused on inferencing and cross-platform deployment, an area increasingly seen as critical as AI workloads expand beyond training into real-world applications.
Modular raised $250 million in a September funding round at a $1.6 billion valuation, bringing total capital raised to $380 million.
The reported acquisition price of roughly $4 billion would represent more than a 2.5-times increase in valuation in less than two years.
The company is backed by investors including DFJ Growth, Factory, General Catalyst, Google Ventures, Greylock Partners and US Innovative Technology Fund.
The Modular discussions are part of a wider acquisition strategy aimed at strengthening Qualcomm’s position in artificial intelligence.
The Information in a seperate report said that the company is in talks to acquire AI chip startup Tenstorrent for between $8 billion and $10 billion.
If completed, the two deals would reflect a dual-track AI expansion strategy: hardware capabilities through Tenstorrent and software infrastructure through Modular.
Qualcomm has previously pursued similar expansion efforts through acquisitions, including its agreement to buy Alphawave IP Group Plc for about $2.4 billion in cash.
Its earlier attempt to acquire NXP Semiconductors NV was ultimately scrapped due to regulatory hurdles.
The company is expected to use its upcoming investor day to provide further details on its AI roadmap, including custom chip development and potential major customer relationships.
Despite the acquisition momentum, Qualcomm shares remain under pressure in the near term amid a broader tech sector downturn.
Qualcomm jedná s ByteDance o návrhu zakázkových čipů, což by pro něj znamenalo významný průlom mimo trh chytrých telefonů. Podle zdrojů by mohlo jít i o VPUs s cílem zahájit sériovou výrobu do konce roku.
Visitors stand at the Qualcomm kiosk at Bharat Mandapam, one of the venues for AI Impact Summit, in New Delhi, India, February 18, 2026. REUTERS/Bhawika Chhabra Purchase Licensing Rights, opens new tab
June 24 (Reuters) - Qualcomm (QCOM.O), opens new tab is in talks to provide chip-design services to China's ByteDance, four people familiar with the matter said, as the U.S. company seeks to reduce dependence on the smartphone market, its biggest revenue source.
If successful, the negotiations would make ByteDance, the parent of short-video platform TikTok, an early customer of Qualcomm's chip-design services operation. Qualcomm is the world's largest supplier of smartphone modem chips, which manage cellular communications.
The Reuters Inside Track newsletter is your essential guide during the World Cup. Sign up here.
The talks also show that U.S. tech firms remain keen to do business with China, even as growing friction between Washington and Beijing over AI chips has impacted the likes of Nvidia (NVDA.O), opens new tab, AMD (AMD.O), opens new tab, Applied Materials (AMAT.O), opens new tab and Lam Research (LRCX.O), opens new tab.
Qualcomm is discussing designing custom chips for ByteDance, according to three of the sources. The chips would be based in part on technology owned by AlphaWave Semi, a high-speed connectivity specialist Qualcomm acquired last year, two of the sources said.
While the discussions are underway, the outcome remains uncertain, three sources said. It was not clear whether the talks would lead to a finished chip design and manufacturing, and ByteDance could pursue different partners, they said.
Other details about the chip were not immediately clear. One of the sources said the discussion involves the designing of video processing units (VPUs), with an eye toward starting mass production by the end of the year.
Reuters reported earlier that ByteDance is developing an AI chip for inference tasks and custom central processing units (CPUs).
Qualcomm and ByteDance did not respond to requests for comment. The sources spoke on condition of anonymity because the discussions are private.
A deal with ByteDance would be a significant win for Qualcomm, which has faced uncertainty from smartphone makers this year due to a surge in memory-chip prices. Global smartphone shipments are likely to show the steepest annual contraction on record this year.
Qualcomm is working to break into the booming data center chip market and working with customers on three kinds of chips: CPUs, accelerators for inference, and custom chips called ASICs, a fast-growing market for rivals such as Broadcom (AVGO.O), opens new tab and Marvell (MRVL.O), opens new tab.
Reporting by Max A. Cherney, Fanny Potkin, Wen-Yee Lee and Liam Mo; Editing by Miyoung Kim and David Dolan
Our Standards: The Thomson Reuters Trust Principles., opens new tab
FDA poradní výbor bude hodnotit vakcínu proti chřipce mFlusiva od Moderna, přičemž briefing nenašel žádné zásadní nedostatky. Hlasování se zaměří na poměr rizik a přínosů u dospělých ve věku 50 až 64 let a 65 let a více.
FDA Advisory Committee To Review Moderna Flu Vaccine ApplicationThe company submitted an application in December 2025 for mFlusiva (mRNA-1010), an mRNA-based trivalent influenza vaccine.
The VRBPAC panel’s vote will focus on the risk-benefit profile of mFlusiva for influenza prevention in adults aged 50 to 64 years, and in the 65-year-and-older population.
The briefing document released on Tuesday identified no major deficiencies.
The primary efficacy analysis demonstrated that mRNA-1010 (TIV) met all prespecified sequential success criteria—noninferiority, superiority, and super-superiority—relative to the standard-dose (SD) comparator.
Questions Around Comparator Choice And Clinical DataThe VRBPAC members will consider whether the standard-dose flu vaccine used as the control was the most appropriate comparator. High-dose, recombinant, and adjuvanted flu vaccines are generally preferred for adults 65 and older.
FDA Decision Timeline And Proposed Approval StrategyFollowing a Type A meeting, the FDA assigned a Prescription Drug User Fee Act goal date of August 5 for mRNA-1010. It’s for adults aged 50 and older.
Moderna proposed a regulatory pathway based on age, seeking full approval for adults aged 50 to 64 and accelerated approval for adults 65 and older, along with a postmarketing requirement to conduct an additional study in older adults.
Moderna Analyst Sees Opportunity But Flags Some UncertaintiesWilliam Blair noted that the scope of Moderna's postmarketing commitments remains unclear. The company's willingness to fund potentially costly Phase IV studies are important given management's guidance to limit additional spending on its respiratory vaccine franchise.
Analyst Myles Minter said mFluSiva could become a meaningful driver of Moderna's revenue growth in 2027 if approved.
However, Minter maintained a Market Perform rating, citing the need for greater visibility into Phase 3 INTERPATH-001 data for intismeran in adjuvant melanoma, expected in 2026, which he views as a more significant long-term catalyst for the stock.
MRNA Stock Price Activity: Moderna shares rose 1.19% at $56.06 during premarket trading on Wednesday, according to Benzinga Pro data.
Photo: pcruciatti / Shutterstock
Market News and Data brought to you by Benzinga APIs
Intel vykázal tržby 13,577 miliardy USD, meziročně o 7,2 % více, a datová centra a AI vzrostly o 22 % na 5,052 miliardy USD. Qualcomm měl tržby 10,599 miliardy USD, o 3,46 % méně, ale automobilový segment vyskočil o 38 % na rekordní úroveň 1,326 miliardy USD.
Intel (NASDAQ: INTC | INTC Price Prediction) and Qualcomm (NASDAQ: QCOM) both just delivered earnings that tell very different stories about how to win in AI silicon. Intel posted a sixth straight revenue beat while absorbing a $4.07 billion Mobileye charge. Qualcomm landed its fourth consecutive EPS beat with handset weakness offset by record auto.
Foundry Momentum Carries Intel. Cars Carry Qualcomm. Intel’s Q1 FY2026 earnings report showed $13.577 billion in revenue, up 7.2% year over year, with Data Center and AI climbing 22% to $5.052 billion and Intel Foundry up 16%.
CEO Lip-Bu Tan framed the moment plainly: “The next wave of AI will bring intelligence closer to the end user, moving from foundational models to inference to agentic.” Non-GAAP gross margin expanded to 41%, a real signal that the 18A ramp is paying off.
Qualcomm’s quarter looked steadier and stranger. Revenue of $10.599 billion slipped 3.46% year over year. Handsets fell 13% to $6.024 billion on memory constraints and weak Chinese OEM demand.
Automotive ripped 38% higher to a record $1.326 billion, and IoT added 9%. Cristiano Amon told investors Qualcomm is now “in a period of profound industry transformation” tied to AI agents.
One Rebuilds Manufacturing. One Buys Back Stock. The strategic split is the whole story. Intel is pouring capital into wafers, with $4.963 billion in Q1 capex, an Ireland fab buyback, and a fresh Penang expansion.
Qualcomm is doing the opposite, returning cash aggressively. Management authorized a $20 billion repurchase and bought back $2.8 billion in shares last quarter alone.
Lens Intel Qualcomm Core Bet U.S. foundry plus Xeon for AI hosts Snapdragon expansion into auto and data center Marquee Win Xeon 6 selected for NVIDIA DGX Rubin NVL8 Hyperscaler custom silicon shipping in 2026 Key Vulnerability GAAP losses, capex risk if 14A demand slips Handset concentration, Apple vertical integration Intel’s forward P/E of 154 reflects an earnings recovery the market is willing to underwrite. Qualcomm trades at a far more grounded 24 trailing P/E with a 1.67% yield. Two different risk profiles, same end market.
The Next Test Is Whether Diversification Sticks I will be watching Intel’s Q2 guide of $13.8 billion to $14.8 billion and whether 18A yields hold as volume scales. The Google ASIC partnership and the reported Apple production tie-up could reshape the foundry narrative if either delivers signed wafer commitments.
For Qualcomm, the June 24 Investor Day is the catalyst. The key items to watch are hard data center revenue targets and any color on the Alphawave integration. The Chinese handset trough is expected to bottom in Q3 and recover in Q4, so any slip there changes the math fast.
Why I Lean Toward Qualcomm If I Had to Choose Today Intel’s chart has been remarkable. The stock is up 263.12% year to date and 100.64% since the April earnings release. That run already prices in a lot of foundry success that has yet to show up in GAAP profit.
For me, Qualcomm’s mix of record auto growth, a real dividend, and a credible data center entry feels easier to underwrite. Intel offers turnaround torque for investors who can tolerate restructuring noise, while one more clean quarter would further validate the thesis.
Akcie Intelu vyskočily o 10,64 % po zprávě, že Apple s ním má v USA navrhovat a vyrábět čipy. Bernstein to označil za sázku na úspěch foundry businessu.
Intel (NASDAQ:INTC | INTC Price Prediction) ripped higher last week after former President Donald Trump posted on Truth Social that Apple (NASDAQ:AAPL) had agreed to design and manufacture chips with Intel inside the United States. Intel closed up 10.64% at $133.99, with INTC stock now above $140. Bernstein’s Stacy Rasgon, on CNBC, framed the move bluntly. “Intel at these prices, I mean, you’re betting on foundry success.”
What the rumored Apple deal actually is Neither company has confirmed anything. No official statements from Apple or Intel had been issued as of Thursday afternoon, and Wedbush analysts cautioned that Apple’s involvement would likely focus on mature or lower-end silicon rather than its flagship processors. So when Rasgon says the rumored part is probably a low-margin PC chip, that lines up. The dollars at stake on day one are small.
“The first step is always the hardest. And if it actually does happen, at least it’s the first step.” Apple has been a TSMC customer for years. Pulling any wafer volume back to Arizona is symbolic capital that compounds. Dan Ives of Wedbush agreed, telling viewers “This is the right time to now really double down on a potential partnership.”
Why foundry is the entire thesis CEO Lip-Bu Tan has spent a year telling investors the foundry business is the future of Intel, and the numbers have started to cooperate. Q1 FY2026 Intel Foundry revenue came in at $5.421 billion, up 16% year over year, an acceleration from +4% in Q4 2025 and -2% in Q3 2025. Tan attributed the jump to “unprecedented demand for silicon and advanced packaging.” You can read the full release on Intel’s Q1 8-K filed with the SEC.
The losses are still real. Foundry operating losses ran $3.2 billion in Q2 2025, $2.3 billion in Q3 2025, and $2.51 billion in Q4 2025. Tan needs external customers to fill the new Arizona fabs or the depreciation math never works. He has been picking them up. NVIDIA (NASDAQ:NVDA) put $5 billion into Intel common stock last year, SoftBank added $2.0 billion, and Intel joined the Terafab project alongside SpaceX, xAI, and Tesla. The U.S. government took roughly a 10% stake and disbursed $5.7 billion in CHIPS Act funding in Q3 2025 alone. Apple would be the consumer-brand stamp the roster has been missing.
The valuation is doing real work here Intel’s market cap sits near $588 billion, with a forward P/E around 147x and trailing EPS still negative at -$0.60. The stock is up 563% over the past year and 257% year to date from a starting price of $36.90.
The consensus analyst target is $93.12, which sits well below where the stock trades today. So either the sell side is too slow or the market is paying a serious premium for foundry optionality. Bank of America’s Vivek Arya jumped sides on June 11, double-upgrading Intel to Buy with a $135 price target and modeling foundry revenue surpassing $45 billion by 2030.
What Apple gets, and what to watch For Apple, the calculus is supply diversification. Tim Cook just warned that product price increases are “unavoidable” because AI demand is bidding up memory and storage costs, with TechInsights estimating an extra $270 in cost on the next iPhone Pro. A second U.S.-based source on mature nodes is cheap insurance. Apple shares barely moved, up 0.7% to $298.01, which is the right reaction for a $4 trillion company taking a small hedge.
The investor question now is whether Intel and Apple confirm the arrangement, and at what node. Intel 18A is already in high-volume manufacturing in Arizona, and the 18A-P process recently entered risk production. If the first Apple parts run on those lines, Rasgon’s first step turns into a credible second one. If the announcement stays a Truth Social post, the foundry premium baked into Intel’s stock gets a lot harder to defend.
Intel spustil zkušební výrobu svého procesu 18A-P, který má zlepšit výkon o 9 % nebo snížit spotřebu o 18 % oproti 18A. Firma tím chce znovu získat půdu v serverových CPU proti AMD.
Intel (INTC 1.39%) has been losing ground to Advanced Micro Devices (AMD 1.77%) in the server central processing unit (CPU) market, primarily due to the superior performance and lower costs of the latter's Epyc server CPUs.
In fact, AMD seems better-positioned to capitalize on the growth of the server CPU market right now. After all, AMD is gaining share at a nice clip in server CPUs, a market that has received a nice shot in the arm thanks to the growing demand for AI inference workloads. Intel, however, is preparing to fight back against AMD, as evident from its latest move.
Image source: Intel.
Intel is looking to close the technology gap with AMD Intel recently announced that its advanced 18A-P process node is now in risk production. This is the stage during which chips are produced in low volumes to gather data on whether they will meet customer requirements, what their defect rate is, and whether they deliver the claimed performance and efficiency gains.
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It is worth noting that Intel 18A-P is a refined version of the company's 18A process node. The company is promising a 9% improvement in performance compared to the 18A at identical power consumption. Meanwhile, the 18A-P node uses 18% less power while operating at the same performance level as the 18A. Even better, Intel points out that the refined process node is 20% to 40% more thermal resistant, suggesting that it will cost less to cool.
The risk production phase is ideally followed by volume production within the next 12 to 24 months, as noted by Tom's Hardware. However, as this is the refined version of an existing node, it is likely to take less time to get to that point. Intel has started volume production of client and server chips based on the 18A process already and noted on the April earnings call that this is the "fastest new product ramp in five years."
Importantly, the Xeon 6 server processor, manufactured using Intel 18A, is gaining traction among server CPUs. Nvidia has selected it for its Rubin rack-scale servers. Moreover, Intel points out that demand for its Xeon server CPUs exceeds supply, suggesting that the company's most advanced process node could allow it to arrest the market share slide it has been experiencing in the CPU market.
Of course, it remains to be seen how Intel 18A-P fares in the risk production phase. However, since the company has already brought the 18A into volume production, there is a good chance the 18A-P will make the cut and enter volume production as well. This could give Intel a much-needed boost against AMD.
Why the 18A-P process could be an important one for Intel Intel's share of the server CPU market slid by six percentage points year over year to 66.8% in the first quarter of 2026, according to Mercury Research. The chip giant's share of consumer CPUs, meanwhile, dropped by 5.5 percentage points to 70.4%. AMD accounted for the rest of the market.
What's more, AMD's revenue share of these markets is higher than its unit share, suggesting that it enjoys stronger pricing power. If Intel manages to deliver the performance gains it claims and helps lower costs for users by reducing cooling requirements, it can indeed stop AMD from clawing away more market share.
An important point worth noting is that Intel's data center and AI (DCAI) products and the foundry business are already showing promising signs of growth. The company's DCAI revenue increased by 22% year over year in Q1 to $5.1 billion, while the foundry business recorded 16% growth to $5.4 billion. The mass production of the 18A-P node could give both these businesses a shot in the arm.
While Intel will be able to produce more powerful and power-efficient chips thanks to a more advanced node, it is believed that the 18A-P could help it land Apple as a foundry customer. Given that the DCAI and foundry segments produced a combined $10.1 billion revenue out of Intel's overall revenue of $13.6 billion in Q1, they can move the needle in a bigger way for the company, thanks to its product development moves.
As a result, don't be surprised to see Intel's revenue growth exceeding analysts' expectations of around 10% growth going forward.
Data by YCharts
That's why it may be a good idea for investors to continue holding this AI stock, as the advancements it is making on the product side could help it deliver stronger-than-expected growth, which may translate into more stock price upside.
Jim Cramer označil Intel za svůj nejlepší AI čipový titul, i když akcie letos už vzrostly o 263 %. Opírá se o rostoucí roli CPU v agentické AI a zlepšení foundry segmentu.
Jim Cramer, the longtime host of CNBC's Mad Money, recently named Intel (INTC 1.39%) his top artificial intelligence (AI) chip stock. This was a pretty bold move considering that the stock has already rallied by 263% so far this year.
Indeed, Cramer commands one of the more durable audiences in retail investing. His rapid-fire delivery and unfiltered opinions have resulted in countless soundbites featuring actionable investment ideas amid market noise. With that said, his visibility can be polarizing, and detractors often label his calls hyperbolic -- noting the many instances where his enthusiasm has outpaced important nuance or his timing has proven inaccurate.
Nevertheless, his Intel bull thesis centers on two underappreciated dynamics: the company's CPU heritage as the artificial intelligence revolution heads towards its agentic AI era, and the tangible signs that its chip foundry operation is stabilizing. These points deserve scrutiny rather than a simple echo of pundit commentary. Let's dig in to see if Cramer is right.
Image source: The Motley Fool.
Move over, GPUs -- CPUs are making a comeback When given a specific objective to accomplish, agentic AI systems can plan out a set of steps, gather data, and follow through with multistep actions to complete it with minimal human oversight. These software models are changing the nature of the accelerated computing equation, moving it beyond its prior focus on parallel processing power. When it comes to training generative models and basic inference deployments, the complex matrix operations involved need to be handled by GPUs or other types of parallel processing chips. But when users are deploying fleets of autonomous agents, that introduces orchestration layers that CPUs handle more efficiently.
During the earlier stages of the AI revolution, hyperscalers could sequence their chip purchases: first securing massive GPU clusters from Nvidia, and then retrofitting their servers or expanding CPU capacity later as their utilization needs became clearer. This tactic worked when AI workloads were dominated by generic training jobs or simple inference serving.
However, the rise in agentic workloads is inverting the old logic. GPU servers already connect each accelerator with a host CPU to manage traffic, memory coherency, and virtualization. The growth of agentic deployments exponentially multiplies the volume of CPUs required. Because each agent instance can create its own dynamic sub-tasks by querying external APIs and maintaining persistent context, the CPU architectures to support the whole system must now be procured and installed earlier in the process.
Intel's long history in server CPU production positions it to capture incremental socket demand that pure-play GPU designers will struggle to meet. The result is not a zero-sum displacement of GPUs, but a multiplier effect whereby each new tranche of AI accelerators sold results in orders for the CPUs that will make those clusters usable at scale.
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Intel's foundry recovery has been gradual, but respectable Throughout most of the AI revolution, Intel struggled with advanced-node chip manufacturing. Recent capital investments from both Nvidia and the U.S. government, as well as the hiring of Lip-Bu Tan as CEO last year, have helped the company make rapid improvements in the foundry operation.
During the first quarter, Intel's foundry business generated $5.4 billion in revenue -- an increase of 16% year over year. While this may look impressive on the surface, external foundry revenue -- sales that are not attributed to Intel's own products -- was only $174 million. Meanwhile, the foundry unit is still operating at a hefty loss.
Nevertheless, I think that a credible turnaround of Intel's foundry operation actually matters less for its own chips than for the broader AI infrastructure ecosystem. What I mean by that is that the chip sector's concentrated reliance on a single offshore manufacturer (Taiwan Semiconductor Manufacturing) introduces a number of potential points of failure -- geopolitical, logistical, or capacity-related.
Sophisticated buyers are going to increasingly price these factors into their capex plans. Against this backdrop, Intel's ability to secure more external customers for its leading-edge process nodes would validate its recovery and help it diversify its revenue sources away from its legacy integrated devices. While its external foundry business is still small, it has grown nearly sixfold year over year. I'm cautiously optimistic the company can capitalize on the demand tailwinds going forward.
Is Intel stock still a buy? Intel stock's massive upward moves this year have already priced in considerable optimism about AI tailwinds. To achieve sustained share-price appreciation from here will require Intel to convert the CPU demand thesis into measurable design wins and achieve foundry milestones without the multiyear delays that have previously plagued it.
Furthermore, it's important to realize that we are early in the agentic AI era. The infrastructure build-out required to support mass adoption of these applications will likely unfold more gradually than many pundits have predicted. Ultimately, this will give Intel's competitors in the chip design space some time to respond.
Nevertheless, the combination of the resurgent relevance of CPUs and Intel's recent validation as a third-party foundry gives it a degree of optionality that GPU-centric companies lack. Investors evaluating Intel are effectively betting that the next phase of the data center infrastructure build-out will reward balance across the AI chip stack over specialized products.
While Cramer's endorsement amplifies Intel's visibility, the underlying buy case should rest on more observable shifts in AI workload composition and supply chain choices. Whether this translates into durable earnings growth will depend on management's execution, which is never guaranteed. With that said, the directional logic of paired CPU-GPU demand and chip designers' desire to reduce the reliance on overseas foundry partners is enough to at least justify paying close attention to Intel's fundamentals rather than dismissing Cramer's commentary as mere market theater.
Intel vyčlenil pokročilé balení čipů do samostatné divize a jmenoval do jejího čela Seok-Hee Leeho. Firma zároveň rozjíždí proces 18A-P v režimu risk production.
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52-Week Range$18.97▼
$141.45Price Target$87.98
Intel Corporation NASDAQ: INTC has orchestrated a historic market reversal over the past six months, surging 281.8% year to date to trade near $141 per share. Investors evaluating this massive valuation expansion must look past legacy personal computer processor sales. The current momentum stems entirely from a highly subsidized, state-backed transition into a sovereign foundry powerhouse capable of rivaling Taiwan Semiconductor Manufacturing Company NYSE: TSM.
By securing unprecedented government backing and aggressively poaching top-tier manufacturing talent, Intel Corporation is systematically dismantling the primary barriers to domestic silicon fabrication. The thesis driving capital into Intel Corporation centers on a specific, highly lucrative bottleneck in the artificial intelligence (AI) hardware supply chain: advanced packaging.
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Stacking the Deck Against Overseas FoundriesModern artificial intelligence accelerators are no longer monolithic silicon chips. They rely on complex architectural designs that stack high-bandwidth memory directly alongside logic dies. This intricate physical assembly requires specialized back-end packaging technologies.
Currently, the broader semiconductor sector is constrained by the physical capacity limits of existing packaging lines. Taiwan Semiconductor Manufacturing Company operates the dominant advanced packaging platform, but surging order volumes from hyperscalers have left those facilities severely oversubscribed. Major fabless designers are now scrambling for alternatives.
Recognizing this structural industry shortfall, management at Intel Corporation executed a decisive leadership overhaul on June 18, 2026, carving out advanced packaging into an independent, hyper-focused business division.
To lead this critical unit, the board appointed Seok-Hee Lee as Executive Vice President. Lee brings invaluable operational experience from his tenure as chief executive officer of SK hynix, the exact memory giant that pioneered high-bandwidth memory integration. Placing a seasoned memory and packaging veteran directly in charge of commercializing proprietary technologies like Embedded Multi-die Interconnect Bridge-T and High-Density Hybrid Bonding signals a sharp operational pivot. The industry is recognizing that back-end packaging is just as critical to computing performance as shrinking transistor sizes.
Analysts are taking note of the revenue potential independent of traditional front-end wafer fabrication. Mizuho Securities recently raised its price target for Intel Corporation to $135, citing the potential for these distinct back-end packaging platforms to capture 10% to 15% of the total addressable market over the long term. Bank of America followed with an even more aggressive move, raising its price target on Intel Corporation to $160 from $135, marking its second target increase this month. While Mizuho’s upgraded target still trails Intel Corporation’s recent share price, Bank of America’s higher target suggests that parts of Wall Street still see upside despite the stock’s massive rally.
Apple and NVIDIA Validate the 18A-P NodeTo operate successfully as a contract foundry, a facility must demonstrate high, defect-free yields at volume. The clearest signal of yield viability comes from the capital commitments of industry leaders. The physical foundation for this validation was presented at the Honolulu VLSI Symposium earlier this month, where engineers from Intel Corporation confirmed that the enhanced 18A-P manufacturing process had officially entered risk production. This specific node delivers a 9% performance increase at equal power, an 18% power reduction at equal performance, and a 20% to 40% reduction in thermal resistance compared to standard 18A iterations.
Those thermal efficiencies perfectly position the 18A-P node for mobile and consumer computing applications. Days after the symposium, reports surfaced detailing a preliminary agreement with Apple Inc. NASDAQ: AAPL to shift production of mature M-series processors and iPad chips to domestic fabrication lines utilizing the 18A-P process. While volume production is not expected to scale until mid-2027, securing the world's most demanding supply chain operator serves as the ultimate commercial validation for the new domestic nodes.
This consumer-level agreement pairs seamlessly with heavier data center initiatives. In December 2025, NVIDIA Corporation NASDAQ: NVDA finalized a $5 billion strategic equity investment in Intel Corporation, taking a roughly 4% stake at $23.28 per share. The two entities are co-developing multiple generations of custom x86 processors featuring high-speed interconnect integration. Embedding domestic manufacturing directly into the core of the leading artificial intelligence hardware ecosystem effectively creates an industry-wide backstop for Intel Corporation's survival.
Weighing Sovereign Backing Against RealityThe geopolitical necessity of a domestic semiconductor supply chain provides a unique floor for Intel Corporation. Brokered in August 2025, the U.S. government established a direct 10% equity stake via an initial $10 billion investment package. As Intel Corporation's market capitalization recently crossed $708 billion, its sovereign position has appreciated to more than $70 billion. Aligning national security interests directly with the foundry's financial viability mitigates the extreme downside risks that typically accompany a turnaround story of this magnitude.
Investors must square this immense structural optimism with harsh financial realities. Contract manufacturing is a highly capital-intensive business in which utilization rates determine profitability. If fabrication plants do not run at near-maximum capacity, depreciation costs rapidly erode margins.
Overall MarketRank™68th Percentile
Analyst RatingHold
Upside/Downside33.5% Downside
Short Interest LevelHealthy
Dividend StrengthN/A
News Sentiment0.97 Insider TradingSelling Shares
Proj. Earnings Growth53.97%
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Intel Corporation currently trades at a stretched forward price-to-earnings ratio of 223x. The foundry division continues to post massive operating deficits, absorbing a $2.4 billion loss in the first quarter of 2026 alone. Heavy capital expenditures required to equip the localized Arizona facilities will guarantee continued margin compression for at least the next four to six quarters.
Comparing Intel Corporation to its primary overseas rival highlights the premium investors are currently paying. Taiwan Semiconductor Manufacturing Company maintains a trailing price-to-earnings ratio of nearly 38x while already controlling 70% of the contract manufacturing market. Intel Corporation is currently pricing in years of flawless execution, creating a significant execution gap between today's capital outlays and mid-2027 revenue realization.
Despite the staggering multiples, institutional capital continues to flow toward the domestic production narrative. The institutional consensus reflects a firm belief that the shift in capital expenditure back toward domestic fabrication will generate cash flows large enough to justify the current premium valuation. Short interest remains remarkably low at just 2.69% of the public float, indicating a distinct lack of bearish conviction against the sovereign-backed rally.
Silicon Supercycle: Constructing a Position in American SiliconThe fundamental transition of Intel Corporation from a legacy designer to an essential contract manufacturer is fraught with capital-intensive hurdles. The aggressive restructuring of the advanced packaging division under proven leadership indicates that management correctly identifies where the actual value lies in the modern chip cycle.
Those looking to allocate capital in the semiconductor space may want to monitor the timeline for the 18A-P node as it moves from risk production to commercial scaling. Investors comfortable with near-term margin compression and elevated volatility might view pullbacks as an opportunity to gain exposure to the only viable onshore alternative to overseas fabrication. Cautious market participants may prefer to wait for the foundry division of Intel Corporation to string together two consecutive quarters of narrowing operating losses before establishing a full position.
Should You Invest $1,000 in Intel Right Now?Before you consider Intel, you'll want to hear this.
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