Track market-moving stories before they get noisy

Micron Technology (MU +0.87%) is one of the world's three top suppliers of memory chips, which play a critical role in the artificial intelligence (AI) hardware stacks in data centers, computers, smartphones, and even cars. There is a worldwide shortage of memory right now, which allows the manufacturers to dictate prices. For Micron, this resulted in a staggering 1,368% year-over-year increase in earnings to $24.67 per share during its most recently reported quarter.

A company growing at such a blistering pace would normally be expected to command a sky-high valuation as investors pile into its stock to get ahead of future potential returns. And investors have bid the stock up: Micron is sitting on a 12-month gain of around 640% -- but it's actually still trading at a steep discount to the S&P 500 (^GSPC -0.32%) and Nasdaq-100 indexes by one traditional valuation metric.

Normally, I would consider a stock like Micron to be a bargain at the current price. But here's why I'm not a buyer right now.

Image source: Getty Images.

Micron is unquestionably cheap at first glance During its fiscal 2026 third quarter (which ended on May 28), Micron generated a record $41.4 billion in revenue -- a 364% increase from the prior-year period. That result was driven by triple-digit percentage growth across all four of its business segments:

Segment

Fiscal Q3 Revenue

Revenue Growth (YOY)

Cloud memory

$13.7 billion

307%

Core data center

$11.5 billion

653%

Mobile and client

$11.5 billion

254%

Automotive and embedded

$4.6 billion

311%

Data source: Micron Technology. YOY = year over year.

Cloud memory is the category that includes Micron's sales of its high bandwidth memory (HBM) for data centers, where it sits alongside the graphics processing units (GPUs) supplied by chipmakers like Nvidia. HBM stores data in a ready state for GPUs so that they can access it rapidly, helping to maximize processing speeds. That's particularly valuable in intense AI training and inference workloads.

Suppliers like Micron have been reducing their production of other types of memory and reallocating that capacity to boost their output of HBM because demand for it is so strong.

Micron has now generated earnings of $44.23 per share over the last four quarters, placing its stock at a price-to-earnings (P/E) ratio of just 19.8. That's cheaper than both the S&P 500 and the Nasdaq-100, which have P/E ratios of 25.2 and 32.6, respectively.

But Micron's blockbuster financial performance is widely expected to continue. The average forecast among Wall Street analysts covering the company (provided by Yahoo Finance) suggests that its earnings will surge to $155.56 in its fiscal 2027, which begins in September. That gives the stock a forward P/E of just 5.6, which would normally constitute an irresistible bargain in my book.

Valuation isn't everything in this situation The semiconductor industry -- and particularly the memory segment -- has historically been extremely cyclical. In the past, companies would build data centers and upgrade them only once every few years, resulting in lumpy revenues for chipmakers. The AI boom has condensed the upgrade cycle to 12 months or less because companies like Nvidia and Micron keep bringing out faster chips to meet the market's insatiable demand for computing power.

Micron Technology

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But this can't go on forever. The Financial Times reports that Amazon, Alphabet, Meta Platforms, and Microsoft have spent a combined $1.1 trillion on AI infrastructure since 2023, and they are still increasing their annual capital expenditures. That kind of spending makes economic sense only if there is a tangible return, but it appears that the end-users of AI are starting to feel the pinch financially.

Alphabet CEO Sundar Pichai recently said he is fielding complaints from Google Cloud customers about the rising cost of deploying AI. Moreover, a recent price increase by Anthropic for the use of its AI products caused Uber Technologies to blow through its entire 2026 AI budget in just four months. As a result, the company's chief operating officer said it's getting harder to justify the current rate of spending.

Uber has now imposed limits on AI usage for its employees, as have other large companies including Walmart, AT&T, and Amazon. If infrastructure costs keep rising, AI companies will have to continue hiking prices, and this will cause even more of their customers to watch their spending to prevent budget blowouts.

In my opinion, this explains why investors aren't piling into Micron stock despite its low P/E ratio. Even though the AI boom has distorted the cyclicality of the semiconductor industry, it's almost certainly a temporary phenomenon. AI infrastructure spending will eventually slow down. Plus, since Micron and its competitors are rapidly building more chip manufacturing capacity, they are also likely to surrender much of their pricing power in the future as new production comes online and helps ease the shortage -- or even creates a supply glut.

Simply put, it's possible that Micron's earnings could start shrinking in a couple of years as the supply-demand imbalance in the memory market is resolved. That would make its stock more expensive on a forward basis than it currently appears to be. As a result, I'm not buying it right now.

By PYMNTS  |  August 11, 2026

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The Coinbase Business suite now allows businesses to get paid by artificial intelligence agents, Coinbase said in a Tuesday (Aug. 11) blog post.

“The same checkouts you already use can now accept payments from AI agents via x402, an open standard for machine-to-machine payments,” the company said in the post. “Funds settle instantly in USDC, land in your account, and are ready to earn rewards, or withdraw on demand.”

This capability is one of several features added to Coinbase Business in an upgrade announced in Tuesday’s blog post.

Other updates to Coinbase Business include the ability to accept Tether (USDT) through links, checkouts and invoices; the ability to reuse payment links rather than creating a new one for each customer; a flexible pricing option that lets the seller set a minimum, a maximum or leave it open and lets the buyer choose what they pay within those boundaries; the ability to reuse product details across payment links, checkouts and invoices when adding them to a product catalog; and the ability to collect the buyer’s name, email, shipping address and other details alongside the payment.

Coinbase announced in June 2025 that it had opened a waitlist for early access to Coinbase Business alpha and that the new platform would let startups and small businesses send and receive payments, manage crypto assets and automate financial workflows.

“Whether you’re a startup exploring crypto opportunities or a brick-and-mortar business looking to update the system, Coinbase Business is your modern financial command center,” Coinbase said at the time in a blog post.

In October, Coinbase said Coinbase Business was adding a B2B payments suite of tools designed to make USDC as easy to move as sending an email. This global payouts feature allows companies to send USDC to any on-chain address or directly to an email recipient.

For vendors or contractors without a crypto wallet, Coinbase automates the onboarding. Recipients receive an email link, create a free account and can instantly claim or cash out their funds in local currency.

Today, Coinbase Business serves more than 5,000 companies, and its payment acceptance suite has powered more than 100,000 payments, according to the Tuesday blog post.

Key Takeaways ZIM is expected to post a Q2 loss of 10 cents per share on revenues of $1.63 billion. Lower freight rates and carried volume are expected to weigh on ZIM's second-quarter revenues. Higher fuel & labor costs may pressure ZIM's margins, while fleet expansion could offer support. ZIM Integrated Shipping Services (ZIM - Free Report) is set to report second-quarter 2026 results on Aug. 19, before the market opens.  

The Zacks Consensus Estimate for the to-be-reported quarter has narrowed to a loss of 10 cents per share over the past 60 days. The consensus mark indicates a decrease of more than 100% year over year. Currently, the Zacks Consensus Estimate for quarterly revenues is pegged at $1.63 billion, indicating a year-over-year decrease of 0.58%.

For 2026, the Zacks Consensus Estimate for ZIM’s revenues is pegged at $7.05 billion, implying a rise of 2.1% year over year. The consensus mark for 2026 earnings per share (EPS) is pegged at $3.15, indicating a 2.27% increase on a year over year basis.

In the trailing four quarters, this shipping company’s earnings surpassed the Zacks Consensus Estimate in one of the trailing four quarters and missed the mark in the remaining. The average miss was 77.74%

Let’s see how things are likely to have shaped up for ZIM this earnings season.

Factors Likely to Have Influenced ZIM’s Q2 PerformanceWe expect ZIM’s bottom-line performance in the to-be-reported quarter to have been significantly impacted by persistent macroeconomic uncertainty, affecting customer demand and shipment volumes.

Elevated voyage operating costs are expected to have weighed on the company’s performance, while higher fuel expenses and increased labor costs may have further pressured margins.

On the revenue front, lower freight rates and a decline in carried volume are expected to have weighed on the to-be-reported quarter. However, continued fleet expansion initiatives are likely to have provided some support to overall performance.

What Our Model Says About ZIMOur proven model does not predict an earnings beat for ZIM Integrated Shipping Services this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

ZIM has an Earnings ESP of 0.00% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Highlights of ZIM’s Q1 ResultsZIM reported first-quarter 2026 loss per share of 72 cents, which was wider than the Zacks Consensus Estimate loss of 22 cents. In the year-ago reported quarter, ZIM reported EPS of $2.45.

Revenues of $1.39 billion missed the Zacks Consensus Estimate of $1.59 billion and declined 30.4% from the year-ago quarter. This was due to a decrease in freight rates and carried volume.

Q2 Performances of Other Transportation CompaniesWestinghouse Air Brake Technologies (WAB - Free Report) , operating as Wabtec Corporation, reported encouraging second-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year.

Quarterly adjusted earnings of $2.76 per share beat the Zacks Consensus Estimate of $2.63 by 4.9% and increased 21.6% year over year, owing to higher sales and operating margin expansion.

Revenues climbed 17.5% to $3.18 billion and surpassed the consensus mark of $3.08 billion by 3.2%.

United Airlines Holdings, Inc. (UAL - Free Report)  reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%.

Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68 billion consensus mark. A 12.1% increase in total revenues per available seat mile or TRASM, and broad-based gains across premium, loyalty and cargo revenues, supported the top line despite sharply higher fuel costs.

Rivian (RIVN -0.18%) launched its R2 SUV in the U.S. on June 9. The premium EV maker expects the new vehicle, which costs less than its R1T pickup and R1S SUV, to expand its addressable market and widen its moat against Tesla (TSLA +0.58%). But how many R2 SUVs does Rivian need to sell to double its stock price over the next 12 months?

Image source: Getty Images.

How many R2 SUVs does Rivian plan to sell in 2026? In 2025, Rivian's vehicle deliveries declined 18% to 42,247 units as it struggled with macro, supply chain, and competitive headwinds. But in 2026, it expects its deliveries to soar to 65,000-67,000 vehicles as it overcomes those challenges and ramps up its R2 deliveries.

It expects the R2 to account for 20,000-25,000 of those vehicles. A higher mix of R2 SUVs relative to the R1 would also boost its gross margins, since they cost less to manufacture.

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Could hitting that target cause Rivian's stock to double? If it hits that target, analysts expect Rivian's revenue to surge 38% to $7.5 billion in 2026. That's an impressive growth rate for a stock that trades at just three times this year's sales. Considering that Tesla trades at 12 times this year's sales, it's certainly possible for Rivian's stock -- which has dropped nearly 80% from its IPO price -- to double if its R2 sales soar.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

New Standard-sized and Micro-sized contracts will be benchmarked to official NHL statistics , /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced it will launch the world's first index-based Hockey futures on September 28, pending regulatory review. The new contracts will track CME FutureSports Performance Indexes that include exclusive, real-time National Hockey League (NHL) statistics beginning with the 2026-2027 season.

"With our first major-league futures contracts on our NHL indexes, CME Group is bringing the principles and discipline of regulated markets to the businesses that need to manage price risk in professional sports," said Tim McCourt, Senior Managing Director and Global Head of Equities, FX and Alternative Products at CME Group. "Financial institutions, companies and individuals rely on the transparency and infrastructure of CME Group to hedge across all investable asset classes. Our CME FSPI Hockey futures will provide a capital-efficient way for fans, sponsors, broadcasters, third-party arena operators, retailers, food and beverage vendors and others to navigate the risk associated with the performance of each NHL team."

Steve Byrd, Head of Partnerships at FutureSports, said: "In just a matter of weeks, market participants and members of the hockey and sports ecosystem will have the first opportunity to trade a professional financial instrument based on indexes of continuous play-by-play performance statistics of each and every NHL team. NHL teams generated a record $1.53 billion in sponsorship revenue in the 2024-25 season and drew more than 23 million fans into arenas last season – the highest total attendance in the league's 108-year history. Interest is extraordinarily high, and we're delighted to bring these indexes to fruition with our partner, the NHL, and to the world's leading derivatives market with futures contracts trading on CME Group, our exclusive exchange partner."

CME Group Hockey futures will be available in standard-sized contracts, valued at 10x the value of the underlying CME FSPI NHL indexes, and micro-sized contracts that are 1/10 the value of those indexes. Participants can trade live around the clock, allowing for immediate positions on a regulated exchange with central clearing safeguards, transparent pricing and equal market access.

CME FSPI Indexes structure official sports statistics into rules-based, benchmark financial metrics. The performance of the indexes will be calculated using systematic methodologies where point allocations follow transparent statistical frameworks – adding points for positive actions and subtracting for negative plays or setbacks.

The CME FSPI Index methodologies align with the International Organization of Securities Commissions (IOSCO) Principles for Financial Benchmarks and are supported by published governance and oversight procedures.

For more information, contract specifications and updates on the product rollout, and to learn more about the indexes or how to subscribe to index data visit cmegroup.com/fspi.

As the world's leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, cryptocurrencies, energy, agricultural products and metals.  The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform.  In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. 

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange Inc.  CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.  NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc. BrokerTec is a trademark of BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. The S&P 500 Index is a product of S&P Dow Jones Indices LLC ("S&P DJI"). "S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are trademarks of Standard & Poor's Financial Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&P 500 Index are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners.

CME-G

SOURCE CME Group

YPF Sociedad Anonima (YPF - Free Report) reported $6.57 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 41.7%. EPS of $3.07 for the same period compares to $0.13 a year ago.

The reported revenue represents a surprise of +8.64% over the Zacks Consensus Estimate of $6.05 billion. With the consensus EPS estimate being $2.84, the EPS surprise was +8.1%.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how YPF Sociedad Anonima performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Upstream - Total Production: 544.40 Kboed versus 533.75 Kboed estimated by two analysts on average.Operating Revenues- Upstream: $2.74 billion compared to the $2.73 billion average estimate based on two analysts.Operating Revenues- Upstream - Crude oil: $2.18 billion versus $2.22 billion estimated by two analysts on average.Operating Revenues- Midstream & Downstream: $5.68 billion compared to the $5.38 billion average estimate based on two analysts.Operating Revenues- Upstream - Other: $25 million versus the two-analyst average estimate of $79.19 million.Operating Revenues- Upstream - Natural gas: $537 million compared to the $440.72 million average estimate based on two analysts.View all Key Company Metrics for YPF Sociedad Anonima here>>>

Shares of YPF Sociedad Anonima have returned +2.9% over the past month versus the Zacks S&P 500 composite's +2.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

It's been one of the bigger narratives regarding Berkshire Hathaway (BRKA -2.16%) (BRKB -2.18%) for a while now. That is, the conglomerate's been piling up more and more idle cash by selling more stocks than it's been buying for its equity portfolio. Through Q1 of this year, in fact, Berkshire's done so for 14 consecutive quarters.

It's a sign that, for a while now, CEO Greg Abel and his predecessor Warren Buffett have seen little worth owning at the price being asked. This, of course, has implications for all investors.

There's a glimmer of hope on the horizon, though. During the company's second fiscal quarter ending in June, Berkshire finally bought more stock for its equity portfolio than it sold, suggesting there are bargains out there worth buying into.

Image source: Getty Images.

The numbers for Berkshire Don't get too excited. Abel -- with board chairman Buffett's likely guidance -- isn't exactly plowing into every name he had his eye on. In Q2, the company only made net stock purchases of $19.8 billion, buying $23.5 billion of them, while only selling $3.7 billion of its equity holdings.

Data source: Berkshire Hathaway. Chart by author.see attached spreadsheet for source links

That's only a fraction of the $397.4 billion in liquidity it started the quarter with, and still only a tiny part of the $365.5 billion in cash and cash equivalents ($6.3 billion of which is spoken for by wholly owned railroad BNSF) it's sitting on now. But it's a start ... maybe.

A subtle but important hint It's certainly not a splashy dive into the stock market. Then again, it wouldn't be.

Buffett was rarely in a hurry to invest Berkshire Hathaway's idle cash, particularly in the middle part of bull markets when valuations tend to reach above-average levels. Abel isn't likely to be in any hurry either, even if he does appear more willing to proverbially dip his toes into the water than Buffett was shortly before stepping down from his role as CEO -- and chief stock picker -- at the end of last year.

In other words, don't be too discouraged that most of Berkshire's cash that was on the sidelines as of the end of Q1 is still on the sidelines. Also, remember that Berkshire Hathaway only completed its all-cash $6.8 billion acquisition of homebuilder Taylor Morrison in July of this year, after the second quarter had ended.

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Perhaps the bigger takeaway for investors is that while the market as a whole may arguably remain overvalued -- the S&P 500's (^GSPC -0.32%) forward-looking price/earnings ratio right now is near multiyear highs, in fact -- Berkshire's second-quarter net investments suggest there are individual prospects out there still worth considering.

To this end, we don't yet know exactly which stocks Berkshire Hathaway bought in Q2. The conglomerate might have purchased some new names, or it may have merely expanded its existing positions, or it may have combined both. We won't know for sure until the company files its 13F disclosure document, probably sometime later this week. As always, of course, that filing could be a great source of ideas for your own portfolio.

Key Takeaways Lincoln National is restarting common share repurchases in the third quarter of 2026.Lincoln rebuilt capital through asset sales, preferred equity and lower capital intensity.About $10.2 billion in cash and invested cash supports a more balanced capital allocation. Lincoln National Corporation (LNC - Free Report) is bringing share buybacks back in the third quarter of 2026, marking an important turn in its multi-year effort to repair capital and reduce balance-sheet risk. The company paused repurchases in the fourth quarter of 2022 to preserve capital as pressure from its legacy insurance businesses weighed on its financial position.

Initially, Lincoln expected the pause to last through 2023. Instead, it stretched much longer. The company repurchased no common shares in 2023, 2024 or 2025, and stayed on the sidelines in the first half of 2026. Still, its November 2021 authorization remained in place. Of the original $1.5 billion program, about $714 million remains available.

Lincoln spent the intervening years rebuilding its capital position. It raised preferred equity, sold its wealth-management business, secured an investment from Bain Capital and reduced the capital intensity of new business. These actions, along with broader de-risking efforts, helped restore its risk-based capital ratio.

Addressing preferred stock was another key capital-allocation priority before management could turn its attention back to common stock repurchases. Together, these moves signal a return to more balanced allocation.

At the end of the second quarter, cash and invested cash stood at about $10.2 billion, up from $9.5 billion at 2025-end compared with $6.5 billion of long-term debt and $400 million of short-term debt. Lincoln is also maintaining its quarterly common dividend at 45 cents per share, payable Nov. 2 to shareholders of record as of Oct. 12. Its current dividend yield of 3.94% tops the industry average of 2.77%.

LNC’s Price PerformanceLincoln National shares have gained 1.1% in the year-to-date period compared with a 20.6% rise in the industry it belongs to.

Image Source: Zacks Investment Research

Zacks Rank & Key PicksLincoln National currently has a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Finance space are Accelerant Holdings (ARX - Free Report) , Willis Towers Watson Public Limited Company (WTW - Free Report) and CNO Financial Group, Inc. (CNO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for Accelerant’s current-year earnings is pegged at 73 cents per share, which remained stable over the past 60 days. The consensus estimate for its full-year revenues is pegged at $1.09 billion, signaling 18.9% year-over-year growth. Accelerant beat earnings estimates in each of the past four quarters, with an average surprise of 32.6%.

The consensus mark for Willis Towers Watson’s current-year earnings indicates a 15.5% year-over-year increase. It beat earnings estimates in each of the past four quarters, with an average surprise of 3.9%. Furthermore, the consensus estimate for WTW’s full-year revenues is pegged at $10.51 billion, an 8.2% increase from a year ago.

The Zacks Consensus Estimate for CNO Financial’s current-year earnings is pegged at $4.74 per share, which witnessed two upward estimate revisions in the past month against no movement in the opposite direction. It beat earnings estimates in all the past four quarters, with an average surprise of 23.2%. The consensus mark for CNO Financial’s 2026 revenues is pegged at $4.02 billion.

AppLovin Corp (NASDAQ:APP) shares fell 5% to $321 after Bank of America downgraded the stock to Neutral, citing greater uncertainty around the company’s ability to sustain its long-term 30% revenue growth trajectory.

Bank of America said AppLovin’s second quarter results raised questions about a previously assumed source of baseline sequential growth. The firm said engineer-directed improvements to the company’s gaming models appeared to be the primary driver of quarterly growth, while it was less clear whether the 3% to 5% sequential growth from self-learning remained applicable.

The firm said the future trajectory of self-learning was not explicitly addressed in AppLovin’s recent earnings report or third-quarter guidance. Given what it estimates is AppLovin’s roughly two-times market share relative to its next-largest competitor, Bank of America said 3% sequential growth from self-learning alone may no longer apply over the long term.

Bank of America also said AppLovin’s next wave of innovation requires more evidence before it can support the company’s 30% long-term annual revenue growth target. Management has outlined plans to train larger and more complex recommender system models, which it believes could generate larger gains over time by benefiting from scaling effects similar to those seen in large language models.

While Bank of America described AppLovin as a technology leader that has out-innovated Google and Meta in the in-app bidding market, it said there was not yet enough evidence to assess the magnitude or durability of potential gains from the larger recommender models.

As a result, Bank of America lowered its 2027 revenue growth forecast to 23% from 31% and reduced its 2027 EBITDA estimate to $8.3 billion from $9 billion.

The firm also lowered its third quarter model to the midpoint of AppLovin’s guidance range from the high end and reduced its 2027 Consumer revenue forecast to $2 billion from $2.3 billion.

Bank of America lowered its price objective to $400 from $430, based on a 16-times multiple of estimated 2027 EBITDA. It kept the valuation multiple unchanged, saying it expects limited downside to its estimates and does not anticipate AppLovin losing significant market share.

The firm said the debate around AppLovin is increasingly likely to center on the company’s maturity. Without another innovation cycle, Bank of America said AppLovin could increasingly be viewed as a mature adtech platform, with its valuation moving closer to that of established, scaled online advertising companies.

Key Takeaways FIX's 2026 and 2027 EPS estimates rose, with no downward revisions in the past 30 days.Record backlog hit $14.06B as technology demand and Modular expansion strengthened revenue visibility.Strong margins, cash flow and balance sheet support growth, though premium valuation raises execution risks. Wall Street’s confidence in Comfort Systems USA, Inc. (FIX - Free Report) is strengthening after another quarter of rapid growth, record backlog and strong cash generation. The estimate revision trend is one of the strongest arguments supporting FIX. Over the past 30 days, the Zacks Consensus Estimate for 2026 earnings has increased to $45.48 per share from $43.08, while the 2027 estimate has risen to $57.27 from $52.59. There have been no downward revisions. The current estimates imply earnings growth of 57.5% in 2026 and another 25.9% in 2027.

Revenue expectations also point to sustained expansion, with the Zacks Consensus Estimate indicating growth of 38.3% in 2026 and 18.4% in 2027.

FIX Estimate Revision Trend

Image Source: Zacks Investment Research

Brokerage sentiment has strengthened as well. FIX’s Average Brokerage Recommendation stands at 1.33 on a scale of 1 to 5, compared with 1.50 a month ago. Of the 12 recommendations, 10 are Strong Buy, representing 83.3% of the total compared with 75% a month earlier. Wall Street’s average price target of $2,139.88 suggests nearly 28% upside from the latest closing price.

The fundamental picture supports much of that optimism. Second-quarter revenues jumped 50.3% year over year to $3.27 billion, while earnings nearly doubled to $12.53 per share from $6.53. Operating cash flow reached $1.14 billion, and backlog climbed to a record $14.06 billion from $8.12 billion a year earlier.

Image Source: Zacks Investment Research

FIX's Backlog and Technology Demand Support Further GrowthComfort Systems entered the second half of 2026 with unusually strong revenue visibility. Backlog reached a record $14.06 billion at June-end, rising 73% year over year and 13% sequentially. Same-store backlog entering the third quarter was 69% above the prior-year level, while project pipelines remained at historically high levels.

Technology remains the biggest driver. Industrial customers accounted for 75% of first-half revenues, while technology alone represented 58%, up sharply from 40% in the prior-year period. That gives Comfort Systems significant exposure to ongoing investment in data centers and other complex technology infrastructure.

The company is also seeing strength across both major operating businesses. Electrical revenues increased 81% in the second quarter, while Mechanical revenues rose 40%. Management now expects same-store revenue growth for 2026 to finish in the mid-to-high 30% range after growing 47% during the first six months.

Modular Expansion Adds Another Growth EngineComfort Systems’ Modular business is becoming an increasingly important part of the growth story. Modular accounted for 17% of year-to-date revenues, supported by demand from large technology customers. The company is also working to broaden its customer base through pilot projects with frontier labs and colocation providers.

Capacity expansion should support this opportunity. Comfort Systems has more than 3.5 million square feet dedicated to Modular production and expects to exceed 4 million square feet by the end of 2026. Capacity is expected to reach roughly 5 million square feet by late summer 2027. Management emphasized that expansion is tied to meaningful multiyear customer commitments rather than speculative construction.

Acquisitions provide another source of growth. Hunt Electric, acquired in May, is expected to contribute about $250 million of annualized revenues and expands Comfort Systems’ electrical capabilities in Utah.

Margin Strength and Cash Flow Reinforce the Bull CaseGrowth is translating into better profitability rather than simply higher revenues. Mechanical gross margin improved to 25.6% from 22.9% in the second quarter, while Electrical gross margin expanded to 26.4% from 25.3%. Management expects gross margins to remain within the strong ranges recorded recently. Meanwhile, SG&A fell to 8.8% of revenues from 9.7%, helping operating margin rise sharply.

Cash generation is another major strength. Second-quarter operating cash flow reached $1.14 billion, while free cash flow was $999.3 million. For the first six months, free cash flow reached $1.24 billion versus $113.1 million a year earlier.

The balance sheet provides considerable flexibility. Cash stood at $1.85 billion at June-end compared with $981.9 million at 2025-end, while total debt fell to roughly $54 million from $145 million. This gives Comfort Systems room to expand capacity, pursue acquisitions and return capital to shareholders.

FIX’s Rally and Premium Valuation Raise the BarInvestors should not overlook how much optimism is already embedded in FIX shares. The stock has surged 79.4% year to date, easily outperforming the Zacks Building Products - Air Conditioner and Heating industry’s 26.2% gain, the Zacks Construction sector’s 10.1% advance and the S&P 500’s 13.1% rise.

FIX Price Performance (YTD)

Image Source: Zacks Investment Research

That performance has pushed valuation higher. FIX trades at 31.79X forward 12-month earnings, above the industry’s 24.41X and its five-year median of 22.89X. Although the multiple remains below the upper end of its five-year range of 13.32X-48.14X, investors are paying a sizable premium for continued earnings growth.

The valuation means execution needs to remain strong. Any slowdown in backlog conversion, margin expansion or technology spending could make the shares more sensitive to earnings disappointments.

FIX Stock’s Valuation (P/E F12M)

Image Source: Zacks Investment Research

Technology Exposure and Execution Risks Need WatchingComfort Systems’ rising technology exposure is a powerful tailwind but also creates concentration risk. Technology generated 58% of first-half revenues compared with 40% a year ago. Meanwhile, 90% of revenues came from construction, with new-building construction alone accounting for 75%. A meaningful slowdown in data-center, semiconductor or other technology-related capital spending could therefore weigh on growth.

Rapid expansion also requires substantial investment. Management expects 2026 capital expenditures to approximate 5% of revenues as it expands production facilities and Modular capacity.

Labor availability, specialty-material costs, inflation, supply-chain disruption, project cancellations and the challenge of integrating acquisitions remain other risks. The company also cautions that backlog may not always translate fully into revenues or profits. These factors matter more when a stock carries a premium valuation.

How Does FIX Compare With EMCOR, Sterling and Quanta?Comfort Systems competes with EMCOR Group (EME - Free Report) , Sterling Infrastructure (STRL - Free Report) and Quanta Services (PWR - Free Report) across different parts of the mission-critical infrastructure market. EMCOR is a close competitor in mechanical and electrical construction and building services, while Sterling Infrastructure has significant exposure to data centers, semiconductor facilities and advanced manufacturing. Quanta Services competes in electrical construction and integrated infrastructure solutions.

FIX’s 79.5% YTD gain leads Sterling Infrastructure’s 72.6%, Quanta Services’ 56.6% and EMCOR’s 32.3%. The valuation picture is more mixed. Comfort Systems trades at 31.79X forward earnings compared with 23.87X for EMCOR and 22.39X for Sterling Infrastructure, making FIX considerably more expensive than both EMCOR and Sterling Infrastructure. However, Quanta Services trades higher at 37.41X. Thus, FIX’s premium to EMCOR and Sterling Infrastructure requires stronger growth, while its discount to Quanta Services offers some relative valuation support.

Buy, Hold or Sell FIX Stock Now?Comfort Systems’ premium valuation and heavy technology exposure are reasons for investors to remain selective, particularly after the stock’s 79.4% rally. Yet the fundamental momentum remains difficult to ignore. Record backlog, strong technology and Modular demand, expanding margins, exceptional cash generation and a strong balance sheet provide visibility into 2027.

More importantly, analysts are raising earnings estimates rather than trimming them. The improvement in brokerage sentiment and nearly 28% upside implied by Wall Street’s average price target further support the investment case.

With the 2026 and 2027 consensus estimate for EPS moving sharply higher and FIX currently carrying a Zacks Rank #1 (Strong Buy), the balance of growth, earnings revisions and business momentum supports a buy stance despite the stock’s premium valuation. You can see the complete list of today’s Zacks #1 Rank stocks here.

Shares of Axon Enterprise (NASDAQ:AXON | AXON Price Prediction) are up 6% in midday trading Tuesday, trading near $634 after opening the session at $596. The move extends a post-earnings rebound and pushes the stock into positive territory for the year, up 5% YTD.

Earnings Beat and Analyst Repositioning Fuel the Rally The catalyst traces back to last week’s August 5 Q2 report, which is still being digested by the sell side. Axon delivered revenue of $904.39 million, up 35.3% year over year and beating the $876.46 million consensus, while adjusted EPS of $1.88 topped the $1.84 estimate. Management raised the full-year 2026 revenue growth outlook to 32% to 34% from the prior 30% to 32%, per the company’s 8-K filing.

The subscription engine did the heavy lifting. Platform Solutions revenue jumped 123% to $149.84 million, AI Era Plan revenue grew nearly 700%, and Dedrone counter-drone revenue crossed $100 million for the first time. Future contracted bookings sit at $15.10 billion, up 41%. Analyst repositioning followed, with Northcoast Research lifting its price target to $680 from $650 and the Street’s average target now sitting at $691.83 against 18 buy ratings. The initial gross-margin scare tied to climbing memory prices and Dedrone hardware scaling has been reframed as the price of growth, with margins expected to rebuild in Q4.

How the Public Safety Peers Stack Up The peer set tells a divided story. Motorola Solutions (NYSE:MSI) reported the same day and also raised guidance, posting Q2 revenue of $3.13 billion (up 13%) and non-GAAP EPS of $4.41 versus a $3.85 estimate. CEO Greg Brown called it “exceptional across the board.” Motorola also announced a $1.5 billion acquisition of counter-drone specialist D-Fend Solutions, echoing the same counter-UAS tailwind driving Axon’s Dedrone momentum. MSI shares are up 1% today to $465 and are up 21% YTD.

Tyler Technologies (NYSE:TYL) sits at the opposite end. The govtech vendor reported July 29, missing revenue estimates by 0.50% at $645.10 million despite SaaS revenue climbing 21.7% for a 22nd consecutive quarter above 20%. CEO Lynn Moore pointed to “record SaaS and total bookings”, but the tape has been unforgiving: TYL is down 30% YTD and 46% over the past year, even after today’s 1% bounce.

Axon carries the premium valuation of the group at roughly $51.5 billion in market cap, versus Motorola’s $76.9 billion and Tyler’s $13.2 billion. Note that even after today’s move, Axon shares remain down 29% from a year ago.

The Big Picture Axon opened the day down, and saw most of its gains between 9:35 and 10 a.m. ET. There’s no clear news to correspond with this move, and volume today is close to the average traded for the stock. Instead, price action around the company appears to be tied to its recent earnings. Wall Street has kept relatively stable EPS estimates for the company in 2027. 90 days ago the Street modeled $10.57. Today that number is $10.56. It will be interesting if the company’s subscription success and growing backlog in excess of earnings will lead to some near-term earnings revisions. If that happens, it could form the next catalyst for Axon.

Contact [email protected] for any questions or corrections.

Artificial intelligence data centers are hitting a power problem that has little to do with computer chips, according to a new report from Thornburg Investment Management.

Key Takeaways Average AI server rack density has nearly quadrupled since 2021, straining building power systems. Transformer lead times now stretch up to five years amid a broader equipment crunch. TAOZ and TFGZ, two active Thornburg ETFs, hold power infrastructure names like Vertiv and Coherent. Nvidia Corporation’s (NVDA) latest AI hardware draws far more electricity per rack than entire data centers required a decade ago. The transformers, switchgear and cooling systems inside the building have not kept pace, the report found.

At Nvidia’s GTC 2026 conference, chief executive Jensen Huang described AI infrastructure as a five-layer cake. Energy, he said, forms its foundation. “Energy is the first principle of AI infrastructure and the binding constraint on how much intelligence the system can produce,” Huang said.

Thornburg equity research analyst Baadal Chaudhary calls that imbalance “Watts and Wafers.” Chips have scaled at a pace that keeps surprising investors, he wrote. The physical systems that deliver electricity to run them move on timelines measured in years, not quarters.

Transformers take two to five years to procure and switchgear can take up to three years, according to the report. The grid interconnection queue in Northern Virginia, a hub for data center construction, now runs seven years.

See more: Matthew Tuttle on Investing in AI Infrastructure

The broader AI power debate has focused on the electrical grid. This report, however, argues the sharper constraint sits inside the building. Average server rack density across the industry climbed to 27 kilowatts in 2026. That’s up from seven kilowatts in 2021, the report found. AI hardware is overwhelming electrical systems built for a different era.

Electricity Demands Surge Inside the Rack Traditional server racks, the metal frames holding a data center’s servers and networking gear, once drew 5 to 15 kilowatts. Nvidia’s GB200 platform, built for AI computing, runs at 100 to 137 kilowatts, the report found.

The upcoming Vera Rubin platform is projected to reach 200 to 300 kilowatts per rack, according to the report. Rubin Ultra is expected to exceed 600 kilowatts. Air cooling stops working above 40 to 50 kilowatts, pushing operators toward liquid systems that cool the chip directly.

That shift also costs more. AI-optimized data centers spend about $4.6 million per megawatt on cooling, versus $2.4 million at traditional sites, the report found.

Electrical infrastructure costs have climbed too. AI-optimized facilities spend roughly $3.6 million per megawatt on grey space electrical work, covering transformers and switchgear inside the building. Traditional facilities spend about $2.2 million on that same category, according to the report.

How Power Moves Through the Building Electricity does not arrive at a server ready to use. It enters at medium voltage from the grid, steps down through transformers, and passes through switchgear and backup systems. It then travels through distribution units before reaching the rack. Each handoff adds cost, delay, and lost energy.

One fix gaining ground is a shift to 800-volt direct current distribution, which sends power to the rack in fewer steps. The approach cuts copper requirements by more than 40% and lifts efficiency to 92% — 95%, according to the report. That compares with 75% to 85% for conventional systems.

Small shipments are expected to begin in late 2026, though the industry has not settled on a single standard. Nvidia favors native 800V, while hyperscalers including Meta Platforms, Inc. (META) and Alphabet Inc. (GOOGL) favor a different design, the report noted.

Roughly one-third of planned U.S. data center capacity is expected to include on-site power generation, the report found. That includes gas turbines and fuel cells. The equipment helps developers skip utility interconnection queues that can stretch two to four years. But it adds another layer to the building’s electrical stack.

Infrastructure Firms Feel the Strain Equipment backlogs show where the strain is concentrated. Eaton Corp. (ETN) reported data center orders up 240% in the Americas, with total backlog up 31% year over year, according to the report. Eaton, Vertiv Holdings Co. (VRT) and Schneider Electric have each flagged the same trend. Equipment content sold per megawatt is nearing double traditional levels for AI-optimized deployments.

The Thornburg American Opportunities Fund (TAOZ) and the Thornburg Focus Growth Fund (TFGZ), both launched April 1, 2026, are actively managed strategies. Rather than track a fixed index, the funds aim to capture that kind of shift directly.

TFGZ counts Vertiv Holdings Co. and Argan, Inc. (AGX), a power infrastructure contractor, among its top ten holdings, according to the fund’s factsheet. TAOZ holds Coherent Corp. (COHR), an optical components maker, at 4.3% of its portfolio, according to VettaFi.

TAOZ managed $8.75 million in assets and TFGZ managed $7.51 million as of August 10, according to VettaFi.

At least 13 U.S. states have introduced legislation to pause or restrict new data center projects, the report found. Roughly 34 gigawatts of planned capacity is now classified as stranded or delayed. Virginia, home to a dense cluster of data centers, recently passed a per-kilowatt-hour electricity tax aimed specifically at AI facilities.

For more news, information, and strategy, visit our Portfolio Strategies Content Hub.

Key Takeaways USAC has about half of planned 2027 new units contracted, strengthening visibility into future fleet growth.USAC's gross margin fell to 63.5% as J-W's lower-margin manufacturing and services weighed on the mix.USAC's 3.72x leverage and premium valuation increase the importance of profitable growth and integration. USA Compression Partners, LP (USAC - Free Report) offers unusually clear visibility into future fleet growth. Roughly half of planned 2027 new units are already contracted, while a mid-teens percentage of planned 2028 units is committed.

That visibility supports the growth case, but margins, leverage and valuation leave little room for execution misses. The question is whether contracted demand can translate into enough earnings and cash-flow improvement to justify taking that risk now.

USAC Growth Visibility Supports the Bull CaseUSAC expects approximately 2.5% average annual new-horsepower growth through 2029, with plans to add more than 500,000 horsepower by 2030. Long equipment lead times are pushing customers to plan further ahead, helping the partnership secure commitments years before delivery.

The J-W acquisition also added manufacturing capacity and a broader customer base. Management believes internal packaging capability provides flexibility in an extended lead-time environment and can reduce capital exposure in later years if market conditions change.

USA Compression's Margins Temper the UpsideAdjusted gross margin fell to 63.5% in the second quarter from 65.4% a year earlier. J-W's manufacturing and aftermarket services carry lower historical margins than contract compression, creating a less favorable mix for the combined business.

USAC also expects about $1 million per month of incremental lube oil costs in the second half of 2026. Existing contracts do not provide a direct lube-oil pass-through, so the company must address higher costs as contracts expire and renew, although CPI escalators provide some inflation protection.

USAC's Balance Sheet Leaves Limited RoomUSAC ended the second quarter with a leverage ratio of 3.72x, just below its 3.75x near-term target. It had $1.21 billion drawn on its revolving credit facility, while cash interest expense was $47.4 million during the quarter.

Image Source: USA Compression Partners

Capital needs remain substantial. Full-year expansion capital spending is projected at $230-$250 million, and management is prioritizing excess cash flow toward new-horsepower growth. Weaker operating results, additional acquisitions or faster capital deployment could therefore reduce financial flexibility.

USAC Valuation Demands ExecutionUSAC trades at a trailing 12-month enterprise value-to-EBITDA ratio of 9.96, compared with 8.26 for the Zacks subindustry. That premium increases the importance of delivering utilization gains, integration benefits and profitable growth from the contracted pipeline.

Image Source: Zacks Investment Research

For sector context, Kodiak Gas Services (KGS - Free Report) is another large-horsepower contract compression operator in the United States. Natural Gas Services Group (NGS - Free Report) provides natural gas compression equipment, technology and services, giving investors additional compression-focused businesses to consider when comparing industry exposure.

USAC's Ratings Favor PatienceUSAC's growth runway is visible, but current margin pressure, leverage and a premium valuation argue for patience while the J-W integration develops. The distribution remains well covered, with second-quarter distributable cash flow coverage of 1.65x, yet management is directing excess cash toward fleet expansion rather than near-term distribution growth.

The stock currently carries a Zacks Rank #4 (Sell). It has a Growth Score of B and VGM Score of B, but a Value Score of C and Momentum Score of C. The favorable growth-oriented scores do not override the weaker Zacks Rank, which places greater weight on earnings estimate revisions and suggests investors may want to wait for a better entry setup rather than buy solely on the long-term growth case.

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

AST SpaceMobile, Inc. (NASDAQ:ASTS) is getting closer to turning its satellite network into a commercial business, and Space Exploration Technologies Corp. (NASDAQ:SPCX) is helping put the pieces in orbit.

SpaceX has now launched six of AST SpaceMobile’s BlueBird satellites this year, including BlueBirds 8–10 in June and BlueBirds 11–13 on Aug. 5. The latest Falcon 9 mission brought AST SpaceMobile’s total BlueBird count in orbit to 13.

For AST SpaceMobile, those launches are part of a much bigger race: building enough of its constellation to begin commercial service and move toward a revenue target of nearly $1 billion.

"We still, nothing’s changed on our expectation and our goal of reaching approaching a billion of revenue in our first year of commercial service," Chief Strategy Officer Scott Wisniewski said during the company’s second-quarter earnings call.

The Satellite Count MattersAST SpaceMobile is targeting approximately 45 BlueBird satellites in orbit by early 2027, with BlueBirds 14 through 16 ready to ship and satellites 17 through 46 already in various stages of production and assembly.

The company says it is ramping toward a production cadence of six fully assembled satellites per month, while its broader plan calls for eventually deploying more than 100 BlueBird satellites for worldwide SpaceMobile service.

That makes launch capacity just as important as manufacturing capacity. AST SpaceMobile has said it wants additional access to orbit and is pursuing partnerships or acquisitions to reduce the risks associated with relying on third-party launch providers.

SpaceX is already part of that launch infrastructure. Its Falcon 9 rockets carried BlueBirds 8–10 and 11–13 into orbit this year.

Read Next

$1 Billion Would Come From More Than PhonesGetting satellites into orbit is only the first step. AST SpaceMobile expects its first full year of commercial service to combine government revenue, infrastructure sales and consumer connectivity.

Wisniewski said government could contribute "probably as much as half" of the first-year revenue target, with infrastructure revenue continuing alongside the ramp of commercial service.

The company is already expanding beyond direct-to-device connectivity. Management sees potential "multi-billion-dollar annual-plus revenue opportunities" across government and defense applications, including radar, secure communications, emergency response, IoT and space-based AI edge computing.

That broader opportunity is important because AST SpaceMobile isn’t simply trying to sell satellite phone coverage. It is trying to build a platform that can support multiple businesses on the same space infrastructure.

For investors, the next milestone is therefore not simply another successful SpaceX launch. It is whether AST SpaceMobile can turn a growing BlueBird constellation into commercial service — and eventually into the nearly $1 billion annual revenue run rate management still expects.

SpaceX can help get the satellites there. AST SpaceMobile still has to turn them into a business.

Read Next

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Key Takeaways On Holding's DTC revenues jumped 26%, reaching 45.7% of total sales in the second quarter.Asia-Pacific revenues increased 43.1%, led by momentum in Japan, South Korea and Greater China.ONON raised its 2026 gross margin outlook to at least 65% while maintaining adjusted EBITDA margin guidance. On Holding AG (ONON - Free Report) reported second-quarter 2026 results, with both earnings and revenues missing the Zacks Consensus Estimate. On a year-over-year basis, adjusted earnings improved and net sales increased, supported by strong direct-to-consumer (“DTC”) growth, robust Asia-Pacific momentum and continued apparel strength. The company raised its 2026 gross margin outlook while maintaining its adjusted EBITDA margin guidance.

ONON reported adjusted earnings of 35 cents per share, missing the Zacks Consensus Estimate of 44 cents by 20.5%. Net sales came in at CHF 850.3 million, below the consensus estimate of CHF 1,114 million by 23.7%. Net sales increased 13.5% year over year and rose 21.6% on a constant-currency basis. Adjusted EPS Class A (CHF) improved to 35 cents from a loss of 9 cents in the year-ago quarter.

ONON's Quarterly Performance: Key Metrics & InsightsThe company continued to witness strong momentum in its DTC business. DTC revenues increased 26% year over year to CHF 388.4 million, or 34.3% on a constant-currency basis, with growth exceeding expectations across every region. The DTC business reached a second-quarter high of 45.7% of total net sales, supported by continued strength across On's own retail stores and expanding global store network.

Wholesale revenues increased 4.8% year over year to CHF 461.9 million, or 12.7% on a constant-currency basis. The company continued to emphasize disciplined full-price selling and premium brand positioning amid a promotional marketplace.

Global brand awareness rose to 30%, while consumers under age 34 represented more than one-third of the customer base. On Holding recently opened its first stores in São Paulo and Copenhagen, extending its network of premium retail locations.

On Holding’s Profitability Improves Despite TariffsGross profit increased 20.6% year over year to CHF 555.7 million. Gross margin expanded 390 basis points to 65.4% from 61.5%, despite the company fully absorbing higher U.S. import tariffs and excluding any tariff refunds. Selling, general and administrative expenses increased to CHF 436.3 million from CHF 368 million. Adjusted EBITDA increased 23.5% year over year to CHF 168.1 million, while adjusted EBITDA margin expanded 160 basis points to 19.8% from 18.2%.

Net income was CHF 105 million against a loss of CHF 40.9 million in the year-ago quarter, with net income margin improving to 12.3% from negative 5.5%. Adjusted net income was CHF 117.6 million against a loss of CHF 29.7 million a year ago.

ONON's Regional PerformanceAsia-Pacific delivered the strongest performance, with revenues increasing 43.1% year over year to CHF 170.5 million, or 54.7% on a constant-currency basis. The region again represented more than 20% of total company sales, supported by standout momentum across Japan, South Korea and Greater China.

EMEA revenues increased 15.4% year over year to CHF 228.2 million, or 20.5% on a constant-currency basis, reflecting continued growth across the region.

Americas revenues increased 4.5% year over year to CHF 451.6 million. On a constant-currency basis, sales increased 13%.

ONON Product Performance Reflects Broad Consumer DemandFootwear remained the largest contributor to sales, with revenues increasing 10.9% year over year to CHF 781.6 million. On a constant-currency basis, footwear sales rose 18.9%.

Apparel revenues increased 47.7% to CHF 54.2 million, or 56.2% at constant currency. Accessories revenues climbed 88.3% to CHF 14.5 million, with constant-currency growth of 102.2%, underscoring faster expansion outside the core footwear category.

The company is also advancing its running innovation pipeline. It recently launched the Cloudboom Strike 2 and plans to debut its new SURREAL superfoam in the Cloudsurfer 3 later this year, while expanding LightSpray technology into additional core franchises.

ONON's Financial PositionThe company ended the second quarter with cash and cash equivalents of CHF 1.21 billion compared with CHF 1.02 billion at the end of 2025. Net working capital increased 11.5% to CHF 635.9 million from CHF 570.3 million.

For the first six months of 2026, cash inflow from operating activities increased to CHF 255 million from CHF 89.1 million a year earlier. Investing activities used CHF 47.2 million, while financing activities used CHF 43.3 million.

What to Expect From ONON in 2026?Following a strong first half of 2026, management expects constant-currency net sales growth in the low-20% range for the year. At current spot rates, this implies reported net sales of CHF 3.47 billion to CHF 3.56 billion. The company expects DTC to strongly outperform wholesale in the second half as it deliberately manages wholesale sell-in to protect full-price integrity and create a clean runway for upcoming breakthrough innovations.

On Holding raised its gross margin outlook to at least 65%, reflecting a favorable DTC mix, full-price discipline and operational efficiencies. The outlook excludes any benefits from anticipated tariff refunds in the second half of the year.

Management reiterated its adjusted EBITDA margin guidance of 19.5% to 20% while continuing to invest in future growth opportunities. The company remains focused on pursuing high-quality growth while maintaining its premium positioning.

ONON Stock Past Three-Month Performance

Image Source: Zacks Investment Research

Shares of this Zacks Rank 3 (Hold) company have risen 14.6% over the past three months compared with the industry’s 15.6% growth.

Key PicksFIGS, Inc. (FIGS - Free Report) is an apparel company focused on the healthcare industry. Its offerings include lab coats, jackets, footwear, bags, socks and other accessories used by healthcare professionals. The company carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for FIGS’ current financial-year earnings and sales suggests growth of 42.1% and 18.2%, respectively, from the year-ago actuals. FIGS delivered a trailing four-quarter average earnings surprise of 201.8%.

Boot Barn Holdings, Inc. (BOOT - Free Report) is the largest lifestyle retailer in the United States, specializing in western and work-related footwear, apparel and accessories. The company also holds a Zacks Rank #2 at present.

The Zacks Consensus Estimate for Boot Barn’s current fiscal-year earnings and sales suggests growth of 22.6% and 15.7%, respectively, from the year-ago actuals. BOOT delivered a trailing four-quarter average earnings surprise of 11.4%.

Deckers Outdoor Corporation (DECK - Free Report) is a designer, producer and brand manager of footwear, apparel and accessories for outdoor sports, performance activities and lifestyle use. It also carries a Zacks Rank #2.

The Zacks Consensus Estimate for Deckers’ current fiscal-year earnings and sales suggests growth of 6.7% and 7.9%, respectively, from the year-ago actuals. DECK delivered a trailing four-quarter average earnings surprise of 15.2%.

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NuScale Power (NYSE:SMR) stock is down 32% year to date (YTD), trading at $9.61 Tuesday afternoon after a mild bounce off last week’s lows. The stock is climbing 5% on the session, but it still sits far below the $15 level where NuScale stock started 2026.

The bulls can point to SMR stock’s 52-week range of $7.21 to $57.42 as evidence that a move back to $15 is well within recent trading history. The question is whether the catalysts are in place to get it there.

NuScale’s core reactor-deployment business is still pre-revenue, and the past 12 months have punished holders. NuScale shares are down 77% over the trailing year, a reminder that this remains one of the higher-volatility names in the small modular reactor (SMR) trade.

Why NuScale Stock Is Down This Year The Q2 FY2026 earnings report set the tone. NuScale reported revenue of $75,000, down 99.1% year over year (YoY) from $8.05 million, after the Fluor (NYSE:FLR | FLR Price Prediction) engineering contract for the RoPower project wound down in late 2025 with no replacement work booked.

NuScale Power’s GAAP loss came in at -$0.13 per share, essentially in line with estimates, but the net loss widened to $47.54 million. Dilution has been the other pressure point: NuScale’s weighted-average diluted share count expanded to 364.5 million from 133.4 million a year earlier, after the company raised roughly $984.48 million in net equity proceeds during the first half.

The upside is a balance sheet with real staying power. NuScale Power finished the quarter with $1.9 billion in cash, cash equivalents and investments, giving management room to fund supply-chain readiness while it waits for firm customer contracts.

What It Would Take to Get SMR Stock Back to $15 The recovery thesis rests on converting NuScale’s regulatory lead into firm orders and revenue. CEO John Hopkins highlighted on the Q2 2026 call that “NuScale remains the only small modular reactor company to have received design certification from the U.S. Nuclear Regulatory Commission,” and that the company has a supply chain of more than 60 specialized partners with over 30 agreements already executed.

The most watched catalyst is the potential large-scale U.S. deployment with the Tennessee Valley Authority via strategic partner ENTRA1 Energy. Hopkins assured that “the conversations we understand are progressing well. And I can tell you that when the agreement is signed, NuScale will be ready to implement.” A definitive power purchase agreement, plus movement on the six-module RoPower project at Doicești, Romania with Nuclearelectrica, could reshape investor perception.

Beyond project wins, NuScale Power stock likely needs three additional supports to retrace to $15: sustained AI and data-center power demand, supportive federal nuclear policy, and a broader sentiment recovery across the SMR trade. Investors may want to watch for evidence that the regulatory edge is translating into signed orders rather than continued dilution.

Peers and the Broader Nuclear Trade Oklo (NYSE:OKLO), a fellow advanced-nuclear developer, is down 35% YTD. Fuel and uranium names have held up better: Centrus Energy (NYSE:LEU) is down 24% YTD, while Uranium Energy (NYSE:UEC) is down 2% YTD.

The diversification story sits with the sector ETF. The Global X Uranium ETF (NYSEARCA:URA) is up 5% YTD, with an expense ratio of 0.69%. A diversified basket of uranium and nuclear-related equities has actually gained ground while several single names posted sharp drawdowns. The URA ETF is a sector-concentrated thematic fund and unleveraged, so concentration caution still applies.

What to Watch Next The near-term signal is any definitive TVA power purchase agreement announced through ENTRA1, followed by movement on the Romania project once the new government is seated. Either would give NuScale Power stock a fundamental catalyst to reprice.

Given that NuScale remains pre-revenue in its core deployment business and carries real execution and dilution risk, position sizing matters here. Traders can watch for whether SMR shares can hold above the mid-single digits and reclaim the $10 line before $15 becomes a serious conversation. The next scheduled catalyst is NuScale Power’s Q3 2026 report later this fall.

Contact [email protected] for any questions or corrections.

eToro Group Ltd (Unlisted (US):ETRO) reported second quarter 2026 results that topped Wall Street expectations, but shares fell about 13% on the news of the company’s planned acquisition of US-focused online brokerage TradeZero for up to $231 million.

The trading and investing platform reported adjusted diluted earnings per share of $0.68, compared with consensus estimates ranging from $0.61 to $0.65. Net contribution rose 9% year over year to $229 million, edging above expectations of roughly $225 million.

Net income increased 77% from a year earlier to $53 million, while adjusted net income rose 17% to $63 million. Adjusted EBITDA increased 9% to $78 million.

The company said the increase in net contribution was driven primarily by higher equities trading activity, which helped offset softer cryptocurrency volumes.

GAAP diluted earnings per share rose to $0.58 from $0.31 in the second quarter of 2025, while adjusted diluted EPS increased from $0.56.

eToro also reported growth in its user base and assets. Funded accounts increased 18% year over year to 4.28 million, while assets under administration rose 10% to $19.2 billion.

The company had $1.2 billion in cash, cash equivalents and short-term investments as of June 30.

Alongside the results, eToro announced an agreement to acquire TradeZero in a cash-and-stock transaction valued at up to $231 million. The deal includes cash and up to 2.5 million newly issued Class A common shares, subject to customary purchase price adjustments.

TradeZero, founded in 2015, operates across the US, Canada and international markets and provides trading platforms, broker-dealer infrastructure and tools for active traders. eToro said the acquisition will strengthen its presence in the US and broaden the products and services available on its platform.

TradeZero generated approximately $80 million in revenue with an 81% gross margin over the last 12 months, according to eToro. The company expects the transaction to be accretive to adjusted EPS in the first year after completion.

The acquisition is expected to close in the first half of 2027.

“Today's announcement is an important step in building our US business,” eToro co-founder and CEO Yoni Assia said in a statement. “TradeZero has built a successful franchise, with differentiated technology, broker-dealer infrastructure and a highly engaged trading community.”

Amentum Holdings, Inc. (AMTM) Q3 2026 Earnings Call August 11, 2026 8:30 AM EDT

Company Participants

Joseph DeNardi - Senior VP & Head of Investor Relations
John Heller - CEO & Director
Travis Johnson - Chief Financial Officer
Stephen Arnette - Chief Operating Officer

Conference Call Participants

Tobey Sommer - Truist Securities, Inc., Research Division
Christopher Barbero - JPMorgan Chase & Co, Research Division
Colin Canfield - Cantor Fitzgerald & Co., Research Division
Gavin Parsons - UBS Investment Bank, Research Division
Gregory Parrish - Morgan Stanley, Research Division
Trevor Walsh - Citizens JMP Securities, LLC, Research Division
Matthew Akers - BNP Paribas, Research Division
Kenneth Herbert - RBC Capital Markets, Research Division
Andre Madrid - BTIG, LLC, Research Division

Presentation

Operator

Ladies and gentlemen, thank you for standing by. Good morning, and welcome to Amentum's Third Quarter Fiscal Year 2026 Earnings Conference Call. Today's call is being recorded. [Operator Instructions]

I would like to turn the call over to Joe DeNardi, Senior Vice President of Investor Relations. Please go ahead.

Joseph DeNardi
Senior VP & Head of Investor Relations

Thank you, and good morning, everyone. We hope you've had an opportunity to read our earnings release, which we issued yesterday afternoon and is posted on our Investor Relations website. We have also provided presentation slides to facilitate today's call. So let's move to Slide 2.

Please note that this morning's discussion will contain forward-looking statements that are subject to important factors that could cause actual results to differ materially from anticipated. I refer you to our SEC filings for a discussion of these factors, including the Risk Factors section of our annual report on Form 10-K. The statements represent our views as of today, and subsequent events may cause our views to change. We may elect to update the forward-looking statements at some point in the future, but specifically disclaim any obligation to do so, except

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Tesla has a long history of partnering with Musk's other companies. Tesla Tesla is giving its Cybercab a little help from another Elon Musk company.

On Monday, the EV maker shared photos on X of what it called the "First Cybercab with Starlink integration." The images show a square-like cutout in the roofline, where the satellite internet equipment is built directly into the vehicle.

In a subsequent X post, Musk said riders inside the autonomous two-seat car can "watch live sports in 4k or movies or games or productivity."

The integration is another example of how Musk's companies are increasingly intertwined. Tesla is using SpaceX's AI personality, Grok, as a voice assistant in its vehicles; SpaceX is buying hundreds of millions of dollars' worth of Tesla Megapacks and cars; and the companies have partnered on a joint chip factory project called Terafab.

Those collaborations have inspired rumors of a potential mega-merger between the two companies.

Monday's Cybercab post also shows how Tesla plans to keep its future fleet of driverless cars connected.

During the automaker's second-quarter earnings call, Musk said that Starlink would help address gaps in cellular coverage as the company expands its self-driving robotaxi service.

"We can't have robotaxis getting stuck in these Bermuda Triangles of lack of cellular connectivity," Musk said. "Starlink, with its ability to do connectivity anywhere, is actually quite important, so we don't have robotaxis missing in action."

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Ben Shimkus You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.

Ben Shimkus is a reporter for the Business News desk. He writes about cars, transportation, retail, and jobs. Ben's reporting has appeared in Rolling Stone, The Verge, Automotive News, USA Today, AutoBody News, LGBTQ Nation, TopSpeed, and Out Magazine. He's also held staff writing positions at The U.S. Sun and the Daily Mail. He graduated from NYU with a Master's in journalism in 2024. Email Ben at [email protected] or message him privately on Signal at bshimkus.41. 

Tesla Elon Musk

AMD’s Helios Launch Could Create Winners Beyond AMD StockAdvanced Micro Devices NASDAQ: AMD expects continued rapid growth in its server CPU and data center businesses as demand for AI inference systems, including agentic AI workloads, expands, according to Matt Ramsay, the company’s corporate vice president of financial strategy and investor relations.

Speaking at a KeyBanc Capital Markets event, Ramsay said AMD’s server business grew more than 50% in the first quarter and more than 70% in the second quarter. Both cloud and enterprise server revenue increased by more than 70% during the second quarter, he said.

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MarketBeat Week in Review – 08/03 - 08/07The company has previously discussed server-business growth of more than 80% in the second half of the year and at least 70% growth in 2027, Ramsay said. He added that AMD’s early outlook for 2027 server revenue is roughly 20% larger than the total server market in 2025.

Inference Shift Drives Server Demand Ramsay attributed the growth outlook in part to a shift in AI spending from training large models toward inference. He said the transition is occurring alongside the emergence of agentic inference, in which automated agents repeatedly access data, run code and send tasks back to AI models.

AMD’s Post-Earnings Drop May Be the Opportunity Investors WantedThose processes create demand for both accelerators and high-core-count CPUs, he said. While GPUs or other accelerators perform the inference work, CPUs can handle varied tasks such as retrieving data from cloud, enterprise and web sources, reorganizing that information and executing generated code.

“The computing that these workers and agents do is very diverse,” Ramsay said. He said this has increased demand for CPUs with high thread counts and performance across multiple workloads.

AMD said its forthcoming 2-nanometer Venice CPUs are being sampled to customers and will ship in its Helios AI racks, while also being deployed broadly across server markets. The company has also outlined its Florence CPU lineup for 2028.

Supply Chain Focus Includes Packaging and Memory Ramsay said AMD has worked with Taiwan Semiconductor Manufacturing Co. to secure additional supply and described TSMC as a key partner. He said near-term supply remains tight, but AMD and its partners have had more time to adjust capacity for expected growth in 2027 and 2028.

Advanced packaging is another area of focus, according to Ramsay. He said Venice will be the first server product in the market to use advanced packaging, and referred to AMD’s announced $10 billion ecosystem investment in Taiwan, much of which is directed toward backend capacity.

The company is also coordinating with original equipment manufacturers, original design manufacturers and hyperscale customers to ensure sufficient DRAM availability for server deployments, he said.

Helios Ramp Expected to Begin in September AMD plans to begin shipping MI450 accelerators, Venice CPUs and certain Pensando networking products to ODM partners building Helios systems in September, Ramsay said. He expects a significant revenue ramp in the fourth quarter and another sizable increase in the first quarter.

He said AMD expects data center revenue, including AI, to grow by “much more than 100%” in 2027. Customer feedback on Helios has been positive, Ramsay said, noting that customers are running model code on sampled systems.

Ramsay identified OpenAI, Meta Platforms and Anthropic as major customers for the rack-scale platform, saying each intends to pursue gigawatt-scale deployments. AMD has commitments for six-gigawatt arrangements, including one-gigawatt commitments from OpenAI and Meta, as well as a one-gigawatt commitment and two-gigawatt ambition from Anthropic, he said.

He cautioned that the pace of deployments will depend on factors including land, power, facilities and capital commitments. AMD’s objective is to deliver stable systems capable of running production code, rather than simply shipping racks, he said.

To reduce execution risk, Ramsay said AMD acquired ZT Systems to add system-level expertise and plans to initially concentrate production with a limited number of ODM partners before expanding more broadly.

ROCm and CPU Strategy Ramsay said AMD has made substantial progress with its ROCm AI software stack over the past 18 months, accelerated in recent months by the use of AI development tools. He said Anthropic earlier rented a cluster of MI355 systems and brought its primary inference model online and tuned it over a weekend.

AMD is also working with Anthropic to help ensure code automated through Claude can run on ROCm and AMD Instinct platforms, he said.

On CPUs, Ramsay said AMD’s strategy is to build products for a range of workloads rather than frame the market primarily as a competition between x86 and Arm architectures. He said the company sees distinct requirements for AI head nodes, CPU-only agent racks, traditional enterprise deployments and cloud workloads.

For agentic rack deployments, customers are emphasizing metrics such as “agents per megawatt” and “threads per megawatt,” Ramsay said. AMD believes its chiplet-based approach enables it to offer multiple CPU configurations, including Venice products with up to 256 cores and 512 threads, to address those varying needs.

About Advanced Micro Devices (NASDAQ:AMD)Advanced Micro Devices, Inc NASDAQ: AMD is a global semiconductor company that designs and sells microprocessors, graphics processors, chipsets and adaptive computing solutions for a broad set of markets. The company's product portfolio includes consumer and commercial CPUs under the Ryzen and Threadripper brands, data center processors under the EPYC brand, and Radeon graphics processing units for gaming and professional visualization. AMD also offers semi-custom system-on-chip (SoC) products for gaming consoles and other specialized applications, and provides supporting software and platform technologies for OEMs, cloud service providers and end users.

Founded in 1969, AMD has evolved from a supplier of logic chips into a diversified, fabless semiconductor designer.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Key Takeaways Nokia's shares fell 28.7% in three months amid competition and legacy business weakness.Nokia's AI and Cloud revenues more than doubled, with order intake reaching EUR 2.8 billion.Network Infrastructure sales growth is now expected at 12-14%, led by Optical and IP Networks. Nokia Corporation (NOK - Free Report) shares have declined 28.7% in the past three months compared with the industry’s decline of 9.3%. The stock has underperformed the Zacks Computer & Technology sector and the S&P 500 during the same time frame.

Image Source: Zacks Investment Research

The company has underperformed its peers like Arista Networks, Inc. (ANET - Free Report) and Ericsson (ERIC - Free Report) . Shares of Ericsson have declined 18.2%, and shares of Arista have risen 34.6%.

Nokia Plagued by Stiff Competition, Weakness in the Legacy BusinessNokia operates in highly competitive telecommunications equipment markets. In this market, pricing, technology differentiation and customer procurement decisions influence contract awards and long-term profitability. Ericsson, with its robust portfolio strength, remains a major rival. The company is also facing strong competition from Arista in the growing AI networking market as well.

Although Nokia continues to strengthen its AI-native networking portfolio and expand relationships with hyperscale cloud providers, competitors are pursuing similar opportunities across 5G, AI infrastructure and future 6G deployments. Maintaining technology leadership while preserving pricing discipline remains essential as customers balance network modernization against capital spending constraints.

Nokia recorded €390 million of restructuring and associated charges in the second quarter of 2026. It is to be noted that Nokia now expects €800 million of restructuring charges in 2026 and €700-800 million of restructuring-related cash outflows. This also includes €350 million of China integration charges and another €200 million from additional restructuring, primarily in Europe. The restructuring should improve efficiency in the long run; this remains a major drag for near-term profitability.

In the Mobile Infrastructure business, Nokia sales increased 7% year over year, but gross margin declined 70 basis points year over year to 49.3%, while operating margin declined 60 basis points to 11.6%. Mobile Infrastructure remains a major revenue earner for the company. Declining profitability, despite growing revenues, is a major concern.

Nokia Benefits From Strength in AI Infrastructure, Portfolio StrengthNokia continues to benefit from its broad portfolio spanning mobile networks, optical transport, IP routing, fixed broadband, software and services. This integrated offering enables the company to address evolving customer requirements across telecommunications operators, enterprises and hyperscale cloud providers.

Nokia owns approximately 20,000 patents, including around 7,000 patents essential to 5G technologies. Its 5G portfolio continues to gain traction among enterprise customers, supporting recurring opportunities beyond traditional carrier spending cycles.

Network Infrastructure delivered double-digit growth in second-quarter 2026, supported by continued momentum in Optical Networks and IP Networks. Optical Networks business grew 20% year over year in the second quarter, supported by AI & Cloud demand, as well as telecom investment. Nokia is also investing heavily in optical manufacturing capacity, including expanding advanced testing and packaging capacity in Pennsylvania. The company is also developing additional U.S. semiconductor manufacturing capabilities.

Management also increased its expectation for full-year Network Infrastructure sales growth to 12-14%, reflecting continued demand for advanced networking solutions.

Growing investment in AI infrastructure is becoming a more important long-term growth driver for Nokia. During second-quarter 2026, AI and Cloud revenues more than doubled year over year while order intake reached EUR 2.8 billion. Management noted that approximately half of these long-term orders are expected to convert into revenue over the next 12 months.

Estimate Revision TrendThe company’s earnings estimates for 2026 have declined, and 2027 have improved over the past 60 days.

Image Source: Zacks Investment Research

Key Valuation Metric of NOKFrom a valuation standpoint, NOK is currently trading at a discount compared to the industry. Going by the price/earnings ratio, the company’s shares currently trade at 20.03 forward earnings, lower than 29.87 for the industry and above its mean of 18.77.

Image Source: Zacks Investment Research

End NoteSolid traction in the Optical Networks business and IP networks business, backed by growing AI data center buildout, is the primary growth engine for the company. Comprehensive portfolio strength is a positive factor. However, high restructuring costs, weakness in the legacy telecom business and fierce competition are weighing on the margin. With a Zacks Rank #3 (Hold), Nokia appears to be treading in the middle of the road, and new investors could be better off if they trade with caution. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

AT&T (T +1.23%) appears to face a significant threat from Space Exploration Technologies (SPCX -5.55%). COO Gwynne Shotwell announced that SpaceX's connectivity segment, Starlink, will compete with AT&T, Verizon, and T-Mobile as a full-fledged wireless carrier.

Admittedly, such a move appears bleak for AT&T shareholders, since Starlink can cover the entire planet if the law allows, whereas AT&T can cover only the populated parts of the U.S. However, AT&T's 4.7% dividend yield stands out compared to SpaceX, which offers no dividend.

Moreover, AT&T trades at a massive valuation discount to SpaceX, and even with a recent pullback, the competitive threat from SpaceX probably does not justify a discounted valuation for AT&T stock for two reasons.

Image source: Getty Images.

1. The extent of SpaceX's competitive advantage is uncertain At first glance, competition from SpaceX appears to put AT&T at a competitive disadvantage. Starlink plans to build a terrestrial coverage network, claiming it will use low-cost ground small cells and femtocells to improve signal where coverage is weak. It believes it offers a lower-cost approach to coverage than the massive networks of existing carriers.

Still, AT&T investors should remember that satellite internet has not threatened its own internet business. Also, Starlink's internet service comes with critical limitations. It needs a line of sight to a satellite, and adverse weather, network congestion, and other factors can negatively affect its service. That is why it needs its own terrestrial network to compete.

Nonetheless, this also raises challenges, suggesting Starlink's service may not add significant value. For one, Starlink has a partnership with T-Mobile in which satellite-to-cell service can take over when the terrestrial network is unavailable. T-Mobile CEO Srini Gopalan said that this type of service accounts for only 0.0003% of its network usage, even during the busiest times of the summer.

Another issue is capital expenditures (capex). Even if Starlink can deliver wireless service at a lower cost, the capex costs could still be considerable. The connectivity segment of SpaceX (Starlink) spent just over $4.9 billion on capex over the trailing 12 months. Connectivity accounted for nearly 12% of SpaceX's capex over that period. That will have to increase, which could affect other parts of SpaceX.

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2. An unclear investor benefit The main reasons to invest in SpaceX's stock, aside from Elon Musk's reputation as an innovator, are a near-monopoly on space launches and the prospect of AI data centers in space. The massive growth of Starlink also contributes to its success, but its satellite-based internet remains a niche market.

Furthermore, investing in SpaceX is considerably riskier than owning AT&T stock. SpaceX does not have a P/E ratio, reflecting ongoing losses. That's one less tool in the standard value investor toolbelt. Buying SpaceX stock today means one pays 85 times sales for a money-losing enterprise that does not pay dividends.

Also, AT&T derives nearly all of its revenue from serving as a wireless carrier and a wireless and fiber-based internet service provider. That makes the company much simpler to understand than SpaceX from an investor standpoint.

Additionally, it produced over $16 billion in free cash flow over the trailing 12 months. Around $8 billion of that free cash flow funds a $1.11-per-share annual dividend, which offers the aforementioned yield of 4.7%, well above the S&P 500's (^GSPC -0.29%) average yield of 1.2%. Also, it sells at a P/E ratio of just 8, and the P/S ratio of 1.3 is a tiny fraction of SpaceX's sales multiple.

To be sure, AT&T still has its challenges. The company's stock is inexpensive because it has run up massive debt. It has spent heavily on capex and lost tens of billions of dollars in failed satellite TV and media content ventures years ago, leaving it with a strained balance sheet that may concern its investors. Still, its profitability should reassure risk-averse investors, especially when compared with SpaceX.

Choose AT&T stock Investors should probably stay with AT&T despite SpaceX's plan to become a wireless carrier.

Indeed, Musk has built a reputation for technological transformation, and investors should not forget SpaceX stock. Nonetheless, investors should remember that Starlink has not threatened AT&T's internet service business. Moreover, the massive costs of entering a competitive industry like wireless services offer no obvious benefit to investors.

In contrast, AT&T's stable dividend and low valuation probably make it a less risky investment choice than SpaceX stock. Hence, if you're choosing between these stocks, the safer move is to buy AT&T and collect its generous dividend.

By PYMNTS  |  August 11, 2026

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Before PepsiCo spends money physically expanding a plant, it builds a digital twin of that plant first. Using Siemens’ Digital Twin Composer and running on Nvidia’s Omniverse platform, PepsiCo recreates every machine, conveyor, pallet route and operator path inside a facility. Artificial intelligence (AI) agents then simulate, test and refine changes to that layout before a single physical modification is made, the company said in a January post on its website.

The early results are already measurable. At initial deployment sites, the approach increased throughput by 20% and identified up to 90% of potential design issues before any physical changes occurred, PepsiCo said. PepsiCo estimates the approach can reduce capital expenditure by 10% to 15% by uncovering capacity that already exists inside a facility rather than building new capacity to solve the same problem. “The scale and complexity of PepsiCo’s business, from farm to shelf, is massive, and we are embedding AI throughout our operations to better meet the increasing demands of our consumers and customers,” PepsiCo Chairman and CEO Ramon Laguarta said.

12-Week Pilot Replaced Months of Traditional Facility Planning The clearest example of what the technology can do came from a 12-week pilot that combined two brownfield manufacturing sites. One ran PepsiCo’s beverage business, the other ran snacks, and the two had always operated separately. “We wanted to bring those businesses together to unlock velocity, efficiencies, capacity,” Steve Hoinka, PepsiCo’s vice president, global manufacturing strategy and transformation, said at Siemens’ Realize LIVE Americas 2026 conference. The challenge, he said, was removing part of one warehouse, sending product straight into a new mixing center, and figuring out whether the combined site could handle new production or packaging without building anything new.

Testing that setup would normally take months. Using the Siemens-Nvidia platform, PepsiCo ran thousands of configuration scenarios in just 12 weeks, all before spending a dollar on concrete, steel or equipment.

Manufacturers Are Treating Simulation as a Capital-Planning Tool PepsiCo’s framing reflects a broader shift in how large manufacturers approach capacity decisions. Athina Kanioura, CEO of PepsiCo Latin America and the company’s global chief strategy and transformation officer, described the ambition as building toward “a world where every plant and warehouse operates as part of a single, intelligent ecosystem,” where facilities “don’t just respond to demand, they anticipate and then adapt to it,” according to the press release announcing the partnership announcement. Nvidia Founder and CEO Jensen Huang framed the shift in an industry-wide lens. “Physical industries are entering the age of AI,” Huang said. “For companies with real-world assets, digital twins are the foundation of their AI journey.”

The pilots remain limited to select U.S. facilities, with plans to scale globally as the technology matures. What distinguishes this use case from most AI deployments in manufacturing is that the return is measured not in labor saved, but in avoided capital expenditure.

A traditional expansion assumes a company needs new physical assets to hit a capacity target. PepsiCo’s bet is that a meaningful share of that capacity already exists inside the facilities it owns, and that AI is now precise enough to find it before the shovel breaks ground.

For all PYMNTS digital transformation coverage, subscribe to the daily Digital Transformation Newsletter.

Cisco Systems (NASDAQ:CSCO) stock has rallied in 2026 and the company looks to build on that momentum after reporting fourth-quarter financial results Wednesday after market close.

Here are the earnings estimates, what experts are saying ahead of the report and the key items to watch.

• Cisco Systems stock is showing weakness. What’s driving CSCO stock lower?

Cisco Q4 Earnings EstimatesAnalysts expect Cisco to report fourth-quarter revenue of $16.82 billion, up from $14.67 billion in last year’s fourth quarter, according to data from Benzinga Pro.

The company has beaten analyst estimates for revenue in four straight quarters and in eight of the past 10 quarters overall.

The estimate for the quarter would set a new company record, surpassing the $15.84 billion reported in the third quarter.

Analysts expect Cisco to report fourth-quarter earnings per share of $1.17, up from 99 cents per share in last year’s fourth quarter.

The company has beaten analyst estimates for earnings per share in four straight quarters and in eight of the past 10 quarters overall.

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What Experts are SayingCisco stock is up over 60% year-to-date, but shares remain off their all-time highs of $130.37, something not lost on Freedom Capital Markets Chief Market Strategist Jay Woods.

"Earnings reactions have been mixed," Woods said in a weekly newsletter. "The company looks to build upon its 13.4% jump after last quarter’s report when they report on Wednesday. The average move in the stock is +/- 5.2% after reporting results.

Woods said Cisco stock looks good on the chart with the daily and weekly charts showing "much optimism about a path higher."

The market expert sees $110 as support as the stock looks to climb to new all-time highs.

"If it can breakout, expect a new leg to accelerate higher over the coming months with upside targets nearing $200."

Here are recent analyst ratings for Cisco stock and their price targets:

KeyBanc: Maintained Overweight rating, raised price target from $125 to $130 Morgan Stanley: Maintained Overweight, raised price target from $120 to $130 BofA Securities: Maintained Buy rating, raised price target from $135 to $150 Key Items to WatchAfter beating analyst estimates for revenue and earnings per share for four straight quarters, the pressure on Cisco could be dialed up for the current quarter and forward-looking guidance.

Cisco’s third-quarter revenue was up 12% year-over-year, with product revenue up 17% year-over-year in the quarter.

One of the highlights from the quarter was CEO Chuck Robbins saying Cisco was seeing strong demand for its products, which was also highlighted with the company reporting it had received orders of $5.3 billion year-to-date.

Cisco said it expects total orders of $9 billion in fiscal 2026, up from a prior guidance of $5 billion. AI infrastructure demand was cited as a reason for the stronger than expected orders.

The company raised its full-year revenue and earnings per share guidance after third-quarter results.

Analysts and investors will be looking for more commentary on total orders for the next fiscal year and an early look at guidance.

Cisco Stock Price ActionCisco stock is down 2.11% to $120.47 on Tuesday versus a 52-week trading range of $65.75 to $130.37. Cisco shares are up 60.3% year-to-date in 2026.

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Oracle has quietly transformed from a legacy database vendor into one of the most strategically positioned AI infrastructure players in the market. That shift is reflected in a backlog few competitors can match, and it is the backbone of our updated 24/7 Wall St. price target.

Oracle (NYSE:ORCL | ORCL Price Prediction) trades at $151.05 after a sharp drawdown from last October’s highs. Our 24/7 Wall St. price target is $212.31, implying 40.56% upside over the next 12 months.

We rate the shares a buy with 90% confidence, one of the higher readings our model has produced this cycle. The setup blends visible contracted revenue, accelerating cloud growth, and a valuation reset that has compressed the multiple materially.

24/7 Wall St. Price Target Summary Metric Value Current Price $151.05 24/7 Wall St. Price Target $212.31 Upside 40.56% Recommendation BUY Confidence Level 90% A Reset That Went Too Far Oracle is up 6.49% over the past week and 7.4% in the last month, but down 21.75% year to date and 38.9% over the trailing year. The 52-week range spans $341.82 to $114.50.

The Q4 FY2026 report in June was the fundamental highlight. Oracle posted EPS of $2.11 on revenue of $19.18 billion, with Cloud Infrastructure revenue up 93% YoY to $5.79 billion. Remaining Performance Obligations surged 363% to $638 billion.

Management confirmed $90 billion in FY2027 revenue and raised non-GAAP EPS guidance to $8.05. The offset has been a S&P downgrade to BBB- tied to debt-funded buildout.

The Bull Case The bull case rests on RPO conversion. Safra Catz told investors OCI would grow from $18 billion in FY2026 to $32 billion, $73 billion, $114 billion, and $144 billion over the following four years, with most already booked.

Oracle is more than halfway through building 72 Multicloud datacenters inside Amazon, Google, and Microsoft, and Multicloud Database revenue jumped 404% in Q4. All top five AI models run on Oracle Cloud. If FY2027 delivers on the 27%-29% revenue growth guide, our bull-case scenario points to $349.96, roughly a 131% return.

What Could Go Wrong The bear case is the balance sheet. Free cash flow was negative $23.69 billion in FY2026 on $55.66 billion of capex, and Oracle plans to raise roughly $40 billion more in FY2027 through debt and a $20 billion ATM equity program. UBS cut its target to $245 citing OpenAI concentration risk.

Management counters that it is investing behind contracted, prepaid demand rather than speculation, and acceptance times are shrinking, in one case to “one week”. Our bear case still lands at $179.53, above today’s price.

How Oracle Compares to Microsoft and Salesforce Microsoft (NASDAQ:MSFT) is the cleanest hyperscaler comparison, since Azure and OCI now compete for the same AI workloads. Microsoft trades at a trailing P/E of 28 with $678 billion in commercial RPO on a much larger revenue base. Oracle’s forward P/E of 18 looks conservative against that.

Salesforce (NYSE:CRM) is the SaaS counterpoint. Salesforce trades at a P/E of roughly 22 with FY27 revenue guided to $45.9-$46.2 billion and mid-teens growth. Oracle’s cloud is growing far faster off a comparable base. The peer set makes our $212.31 target look reasonable, arguably conservative, given Oracle’s growth premium.

Oracle Price Projection 2026-2030 Our 24/7 Wall St. price target is $212.31, our recommendation is buy, and confidence is 90%. The $638 billion backlog tips the scale. The thesis holds for investors willing to underwrite the capex and leverage story for 18 months while RPO converts.

The setup weakens if OCI growth decelerates below the 58% low end of Q1 guidance, which would signal the AI order book is flattening.

Year 24/7 Wall St. Price Target 2026 $212 2027 $255 2028 $300 2029 $345 2030 $390 These projections assume Oracle converts RPO into recognized revenue on the trajectory Safra Catz laid out, reaching $144 billion in OCI by FY2030. Upside or downside hinges on whether AI infrastructure demand holds and whether Oracle can service its debt load without diluting shareholders further.

Contact [email protected] for any questions or corrections.