Key Takeaways Sezzle's subscriber growth, repeat use and expanding services support a stronger investment case.Sezzle raised 2026 revenue growth guidance to 30%-35% and adjusted net income to $180 million.Upstart's cheaper valuation reflects greater funding, credit-cycle and profitability risks. Sezzle Inc. (SEZL - Free Report) and Upstart Holdings, Inc. (UPST - Free Report) give investors two very different ways to invest in financial technology. Sezzle is building a broader payments relationship around buy now, pay later, subscriptions and everyday spending. Upstart is trying to improve consumer lending by helping banks and institutional investors make credit decisions through artificial intelligence.
That difference matters more than a simple comparison of recent growth rates. Sezzle’s progress depends largely on getting consumers to use its platform more often while controlling credit losses and transaction costs. Upstart’s opportunity depends on improving its underwriting models, attracting borrowers and keeping enough third-party funding available for loans.
Both companies can benefit as digital finance gains wider use, but they carry different risks. Sezzle has a smaller platform and a more concentrated business, while Upstart is more exposed to lending cycles, interest rates and capital-market conditions. The better investment, therefore, comes down to business quality, earnings consistency, growth durability and valuation rather than which company posted the faster quarterly increase.
The Case for SEZLSezzle’s main strength is that its growth is increasingly coming from deeper customer relationships. Instead of relying only on shoppers who use buy now, pay later at checkout, the company is steering users toward paid subscriptions and repeat activity. Active subscribers reached 714,000 in the first quarter, up 48.4% from a year earlier, while subscribers placed about nine times as many orders as non-subscribers, on average. This gives Sezzle a more recurring and engaged customer base than a basic checkout service would provide.
That engagement can make Sezzle’s model more durable. On a year-over year basis, average quarterly purchase frequency rose from 6.1 to 7.1 transactions, suggesting that customers are finding more reasons to return to the platform. Features such as the Earn Tab, which rewards in-app activity, appear to support that behavior. Sezzle said users had a 55% higher buy now, pay later conversion rate within 30 days of their first Earn Tab activity. The company’s marketing payback period also remained below six months, indicating that growth spending is producing results relatively quickly.
Sezzle is also becoming less dependent on one payment format. Pay-in-5, longer-term installment options, a Canadian virtual card and the Sezzle Mobile plan expand the number of situations in which customers can use the brand. These additions will not all become major profit sources, but they support the broader aim of turning Sezzle from an occasional checkout button into a regular financial tool. This strategy compares favorably with Upstart’s expansion because Sezzle can fund much of its product development from existing profits rather than waiting for new lending capital.
The financial results support this bullish view, but they are evidence rather than the whole argument. Sezzle produced a 37.9% net margin and a 52.5% adjusted EBITDA margin while continuing to increase marketing spending. Management also raised its 2026 revenue-growth outlook to 30%-35% and adjusted net income guidance to $180 million. Those numbers suggest that higher engagement is translating into meaningful operating leverage. Credit performance can still vary by season and consumer conditions, but Sezzle currently combines growth, profitability and product expansion more effectively than Upstart.
The Case for UPSTUpstart offers a larger long-term market opportunity because its technology can potentially be used across several major lending categories. Its platform already covers personal loans, auto lending, home equity products and revolving credit. If its models can assess risk more accurately than traditional scoring systems, banks may approve more suitable borrowers without accepting weaker expected returns. More than 90% of Upstart loans are fully automated, which shows that the platform can process significant volume without requiring manual work for every application.
Product diversification is another positive. Personal lending remains the economic core of the company, but auto and home products give Upstart additional ways to grow. Auto originations increased more than 300% year over year in the first quarter, while home originations rose about 250%. These businesses are still developing, and management has indicated that the focus is beginning to move from pure volume growth toward better unit economics. The shift is sensible, although investors still need evidence that the newer products can produce attractive returns at scale.
Funding availability has also improved. Upstart secured more than $4 billion of committed capital early in 2026 and renewed an agreement under which Neuberger-managed funds may invest in as much as $600 million of consumer loans. Second-quarter originations reached approximately $4.23 billion, including $1.5 billion in June. These developments reduce near-term funding concerns and indicate that institutional investors continue to support loans generated through the platform. However, Upstart remains more dependent than Sezzle on outside funding and credit-market confidence.
The concern is that rapid platform growth has not yet translated into equally strong earnings growth. Upstart reported 44% revenue growth in the first quarter, but contribution margin fell to 50%, adjusted EBITDA margin was 13%, and the company remained unprofitable under GAAP. Management expects margins to improve during the year, and its full-year outlook calls for approximately $294 million in adjusted EBITDA. Still, compared with Sezzle, Upstart has less room for execution errors and greater sensitivity to borrower demand, credit performance and funding costs.
How Do Estimates Compare for SEZL & UPST?The Zacks Consensus Estimate for Sezzle’s 2026 and 2027 sales implies year-over-year growth of 31.60% and 25.06%, respectively. The consensus mark for 2026 and 2027 EPS suggests a year-over-year increase of 42.06% and 25.74%, respectively. Over the past 30 days, estimates for SEZL’s 2026 and 2027 EPS have been revised upward.
For Sezzle:
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Upstart’s 2026 and 2027 sales calls for year-over-year growth of 36.53% and 30.61%, respectively. The consensus estimates for both 2026 and 2027 EPS have been revised marginally downward over the past 30 days. However, the figures suggest a year-over-year increase of 29.31% and 44.89%, respectively.
For Upstart:
Image Source: Zacks Investment Research
Price Performance and Valuation of SEZL & UPSTOver the past three months, Sezzle shares have surged 121.4%, while Upstart shares have declined 14.5%. In comparison, the S&P 500 composite has advanced 4.5% in the same time frame.
Image Source: Zacks Investment Research
Following the share rally, SEZL is trading at a forward 12-month price-to-sales of 8.67X, which is above its one-year median of 4.62X. Meanwhile, UPST is presently trading at a forward 12-month price-to-sales of 1.64X, which is below its one-year median of 3.15X.
Upstart is clearly cheaper on this measure. However, Sezzle’s premium reflects its stronger margins and more direct conversion of revenues into earnings. The valuation gap means SEZL carries higher expectations, but UPST’s discount is partly compensation for greater funding, credit-cycle and profitability risks.
Image Source: Zacks Investment Research
ConclusionSezzle appears to be the better stock to consider buying. Subscriber growth, rising purchase frequency, expanding services and disciplined customer acquisition are strengthening the underlying business. Its established profitability also gives management more control over how quickly it invests and expands.
Upstart still has meaningful potential. Its AI lending technology, growing product range and improved funding network could support strong long-term growth. However, the company must show that rising originations can produce steadier margins and GAAP profits. Given the balance between growth and execution risk, it seems prudent for investors to retain UPST shares, while SEZL enjoys the stronger investment case.
SEZL currently carries a Zacks Rank #2 (Buy), while UPST has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways GE Vernova reported a $176B backlog as equipment orders more than doubled in Q2.GE Vernova raised 2026 revenues and free cash flow guidance after strong cash generation.GE Vernova signed 20 GW of gas power orders and slot reservation agreements in the quarter. GE Vernova Inc. (GEV - Free Report) used its second-quarter earnings call to press a bigger long-term capacity case, arguing that demand in gas power and electrification is broadening faster than near-term earnings noise would suggest. Scott Strazik and Kenneth Parks centered the discussion on backlog, output expansion and cash generation rather than the quarterly earnings per share (EPS) miss.
Management raised full-year revenues and free cash flow guidance, outlined a path to 30 gigawatts of annual gas output by 2030 and pointed to data center demand as an expanding revenue opportunity across electrification products.
GEV Backlog Keeps Moving Higher
Chief executive officer Scott Strazik said that equipment orders more than doubled in the quarter and service orders rose 15%, pushing the total backlog to $176 billion. Strazik added that backlog was up $13 billion sequentially and remains on track to reach $200 billion in 2027.
Chief financial officer Kenneth Parks said that second-quarter orders reached $24.2 billion, up 88% year over year, with a book-to-bill ratio of more than 2 times. Equipment backlog climbed to $88 billion, while services backlog also reached $88 billion, helped by Power.
GEV reported earnings of $2.47 per share, missing the Zacks Consensus Estimate of $3.17. The company reported revenues of $11.10 billion, which beat the consensus mark of $10.77 billion. The quarter’s central investor message, though, was that backlog growth and cash conversion carried more weight in management’s narrative than the EPS shortfall.
GE Vernova Pushes Gas Capacity Higher
Strazik said that GE Vernova signed 20 gigawatts of gas power orders and slot reservation agreements in the quarter, lifting total gigawatts under contract from 100 to 116 sequentially. He said that the company now expects at least 125 gigawatts under contract by year-end.
Strazik also laid out a more ambitious output plan. After reiterating that GE Vernova is on track for a 20-gigawatt annualized run rate in the third quarter and 24 gigawatts in 2028, the company now sees a capital-efficient path to 30 gigawatts of annual gas output in 2030 using lean improvements, incremental machinery and existing factory space.
In Q&A, Strazik said that most of that 2030 capacity will already be sold this year and more than half of 2031 slots should be under contract by year-end. He also tied today’s equipment build-out to future services demand, noting that the growing HA turbine fleet will create a larger outage and maintenance opportunity later in the next decade.
GEV Lifts 2026 Revenues and Cash View
Parks said that second-quarter free cash flow was $5.1 billion, helped by a $6.4 billion working capital benefit from higher down payments tied to gas slot reservations and stronger electrification orders. Year to date, free cash flow reached roughly $9.9 billion, already more than all of 2025.
That strength drove a sharp guidance increase. GE Vernova now expects 2026 revenues of $45.5 billion to $46.5 billion, up from $44.5 billion to $45.5 billion, and free cash flow of $11.5 billion to $12.5 billion, up from $6.5 billion to $7.5 billion. Adjusted EBITDA margin guidance stayed at 12% to 14%.
Parks said that the company ended the quarter with about $13 billion of cash after returning $2.5 billion to shareholders in the quarter and about $3.9 billion year to date. He also said that GE Vernova remains committed to an investment-grade balance sheet.
GE Vernova Finds a Bigger Data Center Opening
Strazik said that electrification booked $2.7 billion of data center orders in the second quarter, bringing the first-half total above $5 billion, more than double the full-year 2025 level. Parks said that segment orders rose 66% year over year to roughly $6.3 billion, with especially strong demand in substations, switchgear and transformers.
Management also used the call to widen the discussion beyond today’s product set. Strazik said that GE Vernova’s current data center revenue scope of roughly $300 million per gigawatt could expand by two to three times as products such as medium-voltage uninterruptible power supply blocks and solid-state transformers move toward commercialization.
Solid-state transformer orders were framed as a 2027 and beyond story, while medium-voltage UPS products could begin contributing sooner if current customer work advances into orders.
GEV Q&A Reinforces Demand Confidence
Questions from Deutsche Bank, BofA and Wolfe Research pressed management on whether the gas demand cycle is becoming too front-loaded. Strazik answered by emphasizing geographic breadth, citing activity in the United States, Brazil, Qatar, Taiwan, Saudi Arabia and Mexico, while also pointing to continuing discussions for 2032 and beyond.
A Morgan Stanley analyst asked whether 2026 could mark peak gas turbine orders. Strazik declined that framing and instead said GE Vernova sees a clear pathway to continue growing contracted gigawatts through 2027, even as conversion timing will depend on engineering, procurement and construction readiness.
The tone in Q&A was notably firm. Management did not retreat from the demand outlook when pushed on industry capacity, labor ramp or project timing, and Parks added that labor investments had been made early enough to support the move from 15 to 20 gigawatts.
GE Vernova Stays Focused on Execution
The closing message from management was that GE Vernova sees itself operating from a position of strength, with backlog, pricing and customer down payments funding a larger build-out cycle. Strazik repeatedly tied that stance to lean execution, robotics, automation and disciplined capital allocation.
Just as important, the company did not portray the quarter as a one-off spike. The call framed current demand as part of a multiyear electricity investment cycle spanning gas power, grid equipment and service revenue tied to the installed base.
Zacks Rank and Style Scores Signal
Currently, GEV carries a Zacks Rank #2 (Buy), along with a Growth Score of B, a Momentum Score of B, a Value Score of F and a VGM Score of C. Zacks Rank #1 (Strong Buy) and #2 stocks have the strongest near-term earnings revision profile, while A and B Style Scores point to more attractive characteristics within value, growth or momentum disciplines. You can see the complete list of today’s Zacks #1 Rank stocks here.
That mix points to stronger growth and momentum characteristics than value appeal right now. The VGM Score of C suggests a more balanced, middle-of-the-pack profile when all three style factors are combined, and the Zacks Rank can change as analysts revise estimates after the just-reported results.
Key Takeaways GE Vernova grew Q2 revenues 22%, expanded margins and raised 2026 revenue and free cash flow guidance. GEV posted $24.2B in orders and added $13B to backlog, supported by Power and Electrification demand. GEV said data center orders topped $5B year to date, more than double the 2025 level. GE Vernova (GEV - Free Report) reported mixed results in the second quarter of 2026, missing on the bottom line but surpassing the Zacks Consensus Estimate for revenues. Both top and bottom lines expanded year over year, driven by robust equipment growth in Power and Electrification units. Significant orders and backlog growth, margin expansion and cash generation were witnessed in the June quarter. In the second quarter, GEV witnessed backlog growth of $13 billion sequentially from equipment and services.
During the June quarter, orders increased 88% organically to $24.2 billion. Revenues of $11.1 billion increased 22%, led by equipment growth at Electrification and Power, along with higher services. Margins expanded significantly owing to higher volume, price and productivity.
In the Power segment, orders surged 134% organically and revenues of $5.5 billion increased 14%, led by Gas Power equipment. In Electrification, revenues surged 66% organically to $6.3 billion, driving a book-to-bill ratio of approximately 1.7, with continued strong demand for grid equipment. Revenues of $3.6 billion increased significantly, driven by Power Transmission and Grid Systems Integration.
The company expects the Power and Electrification units to continue performing well and has raised its 2026 guidance. GE Vernova now expects revenues in the band of $45.5-$46.5 billion, up from $44.5-$45.5 billion. Free cash flow is now expected in the band of $11.5-$12.5 billion, up from $6.5-$7.5 billion. In the Power segment, 18-20% organic revenue growth is now anticipated, up from 16-18%.
Revenues in the Electrification unit are now expected in the band of $14.5-$15 billion, inclusive of approximately $3.1 billion from Prolec GE, up from $14-$14.5 billion, inclusive of approximately $3 billion from Prolec GE. Driven by demand growth in Electrification, data center orders have reached more than $5 billion year to date, more than double the 2025 number.
GE Vernova's Power and Electrification equipment businesses are expected to be major growth drivers in the coming years, supported by rising global electricity demand, grid modernization and the accelerating adoption of artificial intelligence. Companies like GEV are investing heavily in new gas-fired generation to ensure reliable baseload power while integrating renewable energy, creating sustained demand for its advanced gas turbines and related services.
Moreover, rapid data center expansion and increasing electrification of transportation and industry are placing unprecedented pressure on aging power grids, driving robust demand for the company's Electrification segment. GE Vernova is well positioned to capitalize on this trend through its portfolio of grid equipment, including high-voltage switchgear, transformers, substations, power conversion systems and grid automation solutions.
The combination of a multi-year equipment backlog, strong service opportunities from its expanding installed base and favorable long-term investment trends in power infrastructure should support sustained revenue growth, margin expansion and earnings momentum over the next several years.
Taking a Look at the Backlog Growth of GEV’s PeersEaton’s (ETN - Free Report) backlog continues to expand rapidly, supported by strong demand for electrical equipment used in data centers, utilities, commercial facilities and industrial applications. At the end of the first quarter of 2026, the company’s total Electrical-sector backlog was 48% higher than a year earlier. Backlog in Electrical Americas increased 44%, while Electrical Global recorded a sharper 73% rise.
The backlog expansion should provide Eaton with substantial revenue visibility as investments in electrification, grid modernization and artificial-intelligence infrastructure accelerate. Data-center construction is creating demand for switchgear, power-distribution systems, backup-power equipment and thermal-management solutions, while utilities are upgrading networks to accommodate higher electricity consumption and renewable generation.
Eaton is investing in additional production capacity to address this demand, which should support sales growth and manufacturing utilization. However, the eventual benefit to earnings will depend on the company’s ability to expand capacity, manage supply constraints and deliver projects without eroding margins.
Vertiv’s (VRT - Free Report) backlog has risen sharply as hyperscale and colocation customers increase spending on power and cooling infrastructure for artificial-intelligence data centers. At the end of 2025, the company’s backlog reached $15 billion, representing an increase of 109% from the prior-year period.
Vertiv’s record backlog gives it strong visibility into future sales as data-center operators deploy increasingly power-intensive computing systems. Higher rack densities require advanced electrical distribution, uninterruptible power supplies, liquid cooling and prefabricated infrastructure, all of which play directly to Vertiv’s product portfolio. Vertiv is consequently expanding manufacturing capacity and increasing technology investments to accelerate deliveries and capture additional market share. While the backlog provides a solid foundation for growth, successful conversion will depend on execution, component availability and the timing of large data-center projects, which can cause quarterly order and revenue patterns to fluctuate.
GEV's Price Performance, Valuation and EstimatesShares of GE Vernova have surged in double digits (% wise) so far this year, easily surpassing the Zacks Alternate Energy – Other industry’s growth.
YTD Price ComparisonImage Source: Zacks Investment Research
GE Vernova trades at a forward 12-month price-to-sales (P/S) ratio of 5.4, above the industry’s 5.21.
GEV's Shares Look a Tad PriceyImage Source: Zacks Investment Research
See how the Zacks Consensus Estimate for GEV’s earnings has been revised over the past 30 days.
Image Source: Zacks Investment Research
GEV’s Zacks RankGEV currently has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Applied Digital (NASDAQ:APLD) is a rare AI infrastructure story that behaves like a landlord, benefiting from long-duration, contracted revenue streams while masquerading as a growth stock. The company develops and operates specialized data centers, making money by leasing computing capacity to AI and high-performance computing customers.
With $16 billion in aggregate prospective lease revenue already signed and 15-year hyperscaler leases underwriting the buildout, the buy case rests on the simple premise that buildings will open on schedule, which they are.
$16 Billion in Signed Lease Backlog Makes the Bull Case Polaris Forge 1 is 400 MW fully contracted to CoreWeave for roughly $11 billion in contracted revenue, and Polaris Forge 2 added a 200 MW lease with a U.S. investment-grade hyperscaler worth approximately $5 billion over its term.
Management has reiterated a target of $1 billion in NOI within five years. That is REIT-grade cash flow visibility attached to a pipeline of roughly 1 GW across four development sites.
Applied Digital’s Earnings Inflection Has Arrived Q3 FY2026 revenue hit $126.64 million, up 139.3% year over year, while adjusted EBITDA jumped to $44.14 million from $6.26 million a year earlier. Adjusted EPS came in at $0.09 against a -$0.21 consensus, the fourth straight beat. Analysts have followed with 11 buy ratings, zero holds, and zero sells, and a $76.70 target implying 154.99% upside from the current $30.08.
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Why Applied Digital Beats the Obvious AI Alternative The natural comparison is IREN (NASDAQ:IREN), the other pure-play AI/HPC data center peer transitioning from Bitcoin. IREN posted 0% quarterly revenue growth YoY at last report against APLD’s 139.3%. Over the last year, APLD returned 174.7% versus IREN’s 122.05%. For retirement money, growth backed by signed leases beats growth backed by GPU spot pricing.
The Two Biggest Risks Are Already Shrinking Yes, GAAP losses are real, and the company’s CoreWeave revenue concentration is real. However, the company has $1.73 billion in cash, attractive financing with a $2.15 billion senior secured notes offering at 6.750% to fund Polaris Forge 2, and a new investment-grade hyperscaler diversifying the customer base. Insiders have logged 12 recent buy transactions. The people closest to the numbers are adding, not trimming.
Retirement investors looking for multi-decade AI infrastructure exposure with contracted cash-flow visibility have a compelling case to research APLD today.
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Summit announces updated HARMONi overall survival data and partners with Arcus to test ivonescimab in kidney cancer, expanding its late-stage development.
Key Takeaways Rogers Communications' Q2 earnings beat estimates while revenues rose 7.6% Y/Y.Media revenues surged 53%, driven by MLSE consolidation and higher Blue Jays attendance.Free cash flow rose 6% to C$982 million, while debt leverage improved to 3.8 times. Rogers Communications (RCI - Free Report) reported second-quarter 2026 adjusted earnings of 83 cents per share, beating the Zacks Consensus Estimate by 3.75% and up 1.2% year over year.
In domestic currency (Canadian dollar), adjusted earnings increased 1% year over year to C$1.15 per share.
Revenues of $4.06 billion surpassed the consensus mark by 2.45% and increased 7.6% year over year.
Total revenues increased 7.7% year over year to C$5.62 billion, primarily driven by growth in the Media businesses. Total service revenues increased 8% year over year to C$5.06 billion in the quarter.
Q2 Segmental Details of RCIWireless DetailsWireless revenues were unchanged year over year at C$2.54 billion. Wireless Service revenues were stable at C$1.99 billion, as subscriber growth was offset by lower mobile phone average revenue per user, or ARPU. Equipment revenues increased 2% to C$550 million on a shift toward higher-value devices.
Adjusted EBITDA increased 1% to C$1.31 billion. The margin expanded 70 basis points to 66%. Monthly mobile phone ARPU declined to C$54.25 from C$55.45.
As of June 30, 2026, the prepaid mobile phone subscriber base totaled 1.22 million, an increase of 63K subscribers from the prior-year period. The monthly churn rate was 5.01% compared with 3.23% reported in the year-ago quarter.
As of June 30, 2026, the postpaid wireless subscriber base totaled 11.05 million, representing net additions of 135K subscribers year over year. Postpaid mobile phone churn improved 6 basis points year over year to 0.94%.
Wireless segment operating costs decreased 0.6% year over year to C$1.23 billion.
Cable DetailsCable revenues increased 1% year over year to C$1.98 billion. Service revenues also rose 1% to C$1.97 billion, supported by retail Internet subscriber growth and base management actions, partly offset by declines in Video and Home Phone subscribers.
Cable adjusted EBITDA increased 1% to C$1.16 billion, with the margin improving 10 basis points to 58.4%. Retail Internet net additions totaled 17K, while customer relationship net additions were 9K. Monthly ARPA slipped to C$135.49 from C$135.74 reported in the year-ago quarter.
As of June 30, 2026, the retail Internet subscriber count was nearly 4.521 million, representing a net increase of 75K subscribers year over year.
As of June 30, 2026, total Smart Home Monitoring subscribers reached 158K, indicating an increase of 17K subscribers. The total Home Phone subscriber count was nearly 1.33 million, reflecting a loss of 119K customers in the reported quarter.
Cable segment operating costs increased 0.6% year over year to C$826 million.
Media DetailsMedia revenues surged 53% to C$1.16 billion, reflecting about C$310 million from the consolidation of Maple Leaf Sports & Entertainment beginning in the second half of 2025. Excluding MLSE, organic revenues increased 13%, led by higher Toronto Blue Jays attendance and sponsorships.
Media adjusted EBITDA climbed to C$69 million from C$8 million. Operating costs increased 45% to C$1.09 billion, reflecting roughly C$230 million of added MLSE costs, higher Blue Jays player salaries and game-day expenses, and increased programming costs. Lower advertising revenues remained a headwind.
Consolidated ResultsConsolidated adjusted EBITDA increased 3% to C$2.44 billion, while the adjusted EBITDA margin contracted 180 basis points to 43.5%. Depreciation and amortization increased 1% to C$1.19 billion, while finance costs declined 10% to C$565 million.
Operating costs increased 11.2% to C$3.17 billion. As a percentage of revenues, operating costs expanded 180 bps to 56.5%.
RCI’s Q2 Balance Sheet & Cash Flow DetailsAs of June 30, 2026, Rogers Communications had C$6.1 billion of available liquidity, including C$1.7 billion in cash and cash equivalents and C$4.4 billion available under bank and other credit facilities. In comparison, the company had C$5.9 billion of available liquidity as of Dec. 31, 2025.
Rogers Communications’ debt leverage ratio was 3.8 times as of June 30, 2026, improved from 3.9 times as of Dec. 31, 2025.
Cash provided by operating activities declined 5% to C$1.52 billion due to higher investment in operating assets and liabilities, partly offset by increased adjusted EBITDA. Free cash flow rose 6% to C$982 million, aided by lower capital expenditures and higher adjusted EBITDA.
Rogers Communications paid dividends worth C$270 million and declared a C$0.50 per share dividend on July 21, 2026.
RCI Reaffirms 2026 OutlookFor 2026, RCI maintained its expectations for total service revenue growth of 3%-5% and adjusted EBITDA growth of 1%-3%. Capital expenditures are projected between C$2.5 billion and C$2.7 billion.
Free cash flow is expected in the C$4.1 billion to C$4.3 billion range. The company expects its C$4.35 billion purchase of the remaining 25% interest in MLSE to close in the fourth quarter, subject to league approvals. Rogers Communications then intends to pursue the sale of a minority interest in its consolidated sports, media and entertainment assets.
RCI’s Zacks Rank & Stocks to ConsiderCurrently, RCI carries a Zacks Rank #4 (Sell).
Some better-ranked stocks that investors can consider in the broader Zacks Utilities sector are Ameren Corporation (AEE - Free Report) , Ballard Power Systems (BLDP - Free Report) and Edison International (EIX - 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.
Ameren shares have returned 12.2% in the year-to-date period. AEE is set to report its second-quarter 2026 results on July 30.
Ballard Power Systems shares have gained 22.1% in the year-to-date period. BLDP is set to report its second-quarter 2026 results on July 31.
Edison International shares have risen 33.9% in the year-to-date period. EIX is set to report its second-quarter 2026 results on July 30.
NEW YORK--(BUSINESS WIRE)---- $FUBO--FuboTV Inc. (NYSE: FUBO) and The Athletic announced today the launch of The Athletic Video Hub on Fubo, bringing a robust selection of The Athletic's trusted sports video content to Connected TV (CTV) for the first time. The proprietary video hub is an expansion of a previously announced multi-year partnership in which Fubo was named the official live TV streaming partner of The Athletic. The Athletic Video Hub is a user-friendly content experience designed for sports.
Navitas Semiconductor heads into second-quarter earnings on strong AI data center momentum, amid near-term revenue transition risks and a rich valuation.
Tractor Supply (TSCO - Free Report) reported $4.54 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 2.3%. EPS of $0.81 for the same period compares to $0.81 a year ago.
The reported revenue represents a surprise of -1.64% over the Zacks Consensus Estimate of $4.62 billion. With the consensus EPS estimate being $0.83, the EPS surprise was -2.41%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Tractor Supply performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Comparable store sales increase/(decrease): -1.5% versus the six-analyst average estimate of 0.6%.Number of stores - Petsense: 209 compared to the 206 average estimate based on five analysts.Number of stores: 2,672 compared to the 2,658 average estimate based on five analysts.Number of stores - Tractor Supply: 2,463 compared to the 2,456 average estimate based on five analysts.Sales per selling square foot: $108.44 compared to the $111.28 average estimate based on four analysts.Total selling square footage: 41.88 Msq ft compared to the 41.91 Msq ft average estimate based on four analysts.New stores opened - Tractor Supply: 28 compared to the 18 average estimate based on three analysts.New stores opened - Petsense: 3 versus 1 estimated by three analysts on average.View all Key Company Metrics for Tractor Supply here>>>
Shares of Tractor Supply have returned -2.3% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #4 (Sell), indicating that it could underperform the broader market in the near term.
Dime Community (DCOM - Free Report) reported $126.45 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 15.3%. EPS of $0.79 for the same period compares to $0.64 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $122.02 million, representing a surprise of +3.64%. The company delivered an EPS surprise of +3.95%, with the consensus EPS estimate being $0.76.
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 Dime Community performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
NCOs / Average loans: 0.4% versus 0.2% estimated by two analysts on average.Net Interest Margin: 3.3% versus the two-analyst average estimate of 3.2%.Average Balance - Total interest-earning assets: $14.09 billion versus the two-analyst average estimate of $14.17 billion.Efficiency Ratio: 51.2% versus 53.1% estimated by two analysts on average.Gain on sale of residential loans: $0.05 million versus $-0.74 million estimated by two analysts on average.Net Interest Income: $115.19 million versus $112.45 million estimated by two analysts on average.BOLI income: $5.04 million versus the two-analyst average estimate of $4.25 million.Loan level derivative income: $0.54 million compared to the $0.74 million average estimate based on two analysts.Non-interest income- Other: $0.74 million versus $0.88 million estimated by two analysts on average.Service charges and other fees: $6.48 million versus $5.27 million estimated by two analysts on average.Total Non-Interest Income: $11.27 million compared to the $9.57 million average estimate based on two analysts.View all Key Company Metrics for Dime Community here>>>
Shares of Dime Community have returned -0.8% over the past month versus the Zacks S&P 500 composite's +0.4% 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.
Key Takeaways PUMP to report Q2 results July 29, with consensus estimating a cent per share loss on $300.51M in revenues.PUMP likely benefited from stronger Permian completion activity and disciplined cost management in Q2.PUMP's Q2 revenues are expected to decline year over year as hydraulic fracturing and cementing sales soften. ProPetro Holding Corp. (PUMP - Free Report) is set to release second-quarter 2026 results before the market opens on July 29. The Zacks Consensus Estimate for the to-be-reported quarter is pegged at a loss of one cent per share on revenues of $300.51 million.
Let us delve into the factors that are likely to have influenced the oilfield service provider’s performance in the to-be-reported quarter. But first, it is worth taking a look at PUMP’s performance in the last reported quarter.
Highlights of PUMP’s Q1 Earnings & Surprise HistoryIn the last reported quarter, the Midland, TX-based oil and gas equipment and services company reported an adjusted profit of 3 cents per share, against the Zacks Consensus Estimate of a loss of 12 cents, driven by disciplined cost management. Revenues of $271 million also marginally beat the consensus mark of $270 million.
PUMP’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed in one, delivering an average negative surprise of 17.21%.
This is depicted in the graph below:
Trend in PUMP’s Estimate RevisionThe Zacks Consensus Estimate for second-quarter 2026 earnings has witnessed three upward and no downward movements in the past 30 days. The consensus estimate indicates year-over-year earnings growth of 85.71%. However, the Zacks Consensus Estimate for revenues implies a 7.86% decline from the year-ago quarter.
Factors to Consider Ahead of PUMP’s Q2 ReleaseProPetro generates revenues by delivering pressure pumping and other well-completion services to exploration and production companies, which pay it to help complete and enhance oil and natural gas wells.
ProPetro's second-quarter results are likely to benefit from improving completion activity in the Permian Basin. The company is expected to have operated approximately 12 active hydraulic fracturing fleets during the quarter, supported by stronger customer demand and improving completion activity. Higher utilization of its FORCE electric fracturing fleets and growing adoption of natural gas-powered equipment are also likely to have supported operating margins by lowering fuel costs and improving efficiency. Additionally, continued cost discipline and progress in the PROPWR business are likely to have provided incremental support to its earnings.
The reduction in PUMP's costs is expected to have improved its bottom line. PUMP's cost of services (excluding depreciation and amortization) is projected to reach $237 million in the second quarter, down 6.4% from the year-ago quarter's $253.2 million. Meanwhile, depreciation and amortization expense is projected to reach $41.9 million in the second quarter, down 3.4% from the year-ago quarter's level.
On the bearish side, PUMP's total revenues are expected to have suffered in the quarter to be reported. The Zacks Consensus Estimate indicates a decrease in second-quarter 2026 revenues from the year-ago quarter’s $326.2 million. Our model predicts revenues from the hydraulic fracturing services to be $210.2 million, down from $245.7 million in the year-ago period. Meanwhile, our model forecasts revenues from cementing services of $30.5 million, down from $32.4 million in the year-ago period.
What Does Our Model Predict for PUMP?Our proven model predicts an earnings beat for PUMP this time. A stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) to beat earnings. This is exactly the case here.
PUMP’s Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, for this company is +52.38%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
PUMP’s Zacks Rank: PUMP currently carries a Zacks Rank #2.
Other Stocks to ConsiderHere are some other firms from the energy space that you may want to consider, as these, too, have the right combination of elements to post an earnings beat this reporting cycle.
BP (BP - Free Report) has an Earnings ESP of +3.48% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 4. You can see the complete list of today’s Zacks #1 Rank stocks here.
BP is valued at $112 billion. It is a global integrated energy company engaged in oil and natural gas exploration and production, refining, fuel marketing, petrochemicals and renewable energy businesses. BP's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 22.98%.
Murphy Oil (MUR - Free Report) has an Earnings ESP of +10.92% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 5. Murphy Oil is an independent oil and natural gas exploration and production company with operations in the United States, Canada and offshore international markets, focusing on the development of conventional and unconventional hydrocarbon resources.
The company is valued at $5.35 billion. Murphy Oil's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 117.54%.
Helmerich & Payne (HP - Free Report) has an Earnings ESP of +9.64% and a Zacks Rank #3. The firm is scheduled to release earnings on Aug. 5.
Helmerich & Payne is valued at $3.46 billion. The company is a leading provider of drilling solutions, offering land and offshore contract drilling services and advanced drilling technologies to oil and natural gas exploration and production companies.
NEW ORLEANS, July 23, 2026 (GLOBE NEWSWIRE) -- ClaimsFiler, a FREE shareholder information service, reminds investors that they have until August 25, 2026 to file lead plaintiff applications in a securities class action lawsuit against Futu Holdings Limited (NasdaqGM: FUTU) (“Futu” or the “Company”), if they purchased or otherwise acquired the Company’s securities between May 24, 2023 and May 27, 2026, inclusive (the “Class Period”). This action is pending in the United States District Court for the Southern District of New York.
Get Help
Futu investors should visit us at https://www.claimsfiler.com/cases/nasdaqgm-futu or call toll-free (833) 538-3601. Lawyers at Kahn Swick & Foti, LLC are available to discuss your legal options.
About the Lawsuit
Futu and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
The alleged false and misleading statements and omissions include, but are not limited to, that: (i) the Company was not in compliance with the requirements of the China Securities Regulatory Commission, including because it continued to conduct securities business, public fund sales business and futures business in mainland China without obtaining the requisite licenses or approval; (ii) as a result, the Company was reasonably likely to face regulatory penalties, including the disgorgement of ill-gotten gains and other penalties; (iii) as a result of the foregoing, the Company’s financial results were overstated; and (iv) as a result of the foregoing, defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
The case is Tang v. Futu Holdings Limited, et al, No. 26-cv-05453.
About ClaimsFiler
ClaimsFiler has a single mission: to serve as the information source to help retail investors recover their share of billions of dollars from securities class action settlements. At ClaimsFiler.com, investors can: (1) register for free to gain access to information and settlement websites for various securities class action cases so they can timely submit their own claims; (2) upload their portfolio transactional data to be notified about relevant securities cases in which they may have a financial interest; and (3) submit inquiries to the Kahn Swick & Foti, LLC law firm for free case evaluations.
To learn more about ClaimsFiler, visit www.claimsfiler.com.
New York, New York--(Newsfile Corp. - July 23, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Futu Holdings Limited (NASDAQ: FUTU) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Futu securities between May 24, 2023 and May 27, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/FUTU.
Futu Case Details
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that:
Futu was not in compliance with the requirements of the China Securities Regulatory Commission ("CSRC"), including because Futu continued to conduct securities business, public fund sales business, and futures business in mainland China without obtaining the requisite licenses or approval; as a result, Futu was reasonably likely to face regulatory penalties, including the disgorgement of ill-gotten gains and other penalties; and as a result of the foregoing, Futu's financial results were overstated; and as a result of the foregoing, defendants' positive statements about Futu's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.What's Next for Futu Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/FUTU, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Futu you have until August 25, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Futu Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Futu Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
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To view the source version of this press release, please visit https://www.newsfilecorp.com/release/303321
Source: Bronstein, Gewirtz & Grossman, LLC
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NEW YORK, July 23, 2026 (GLOBE NEWSWIRE) -- Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Futu Holdings Limited (NASDAQ: FUTU) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Futu securities between May 24, 2023 and May 27, 2026, both dates inclusive (the “Class Period”). Such investors are encouraged to join this case by visiting the firm’s site: bgandg.com/FUTU.
Futu Case Details
The Complaint alleges that, throughout the Class Period, Defendants made materially false and misleading statements and/or failed to disclose that:
Futu was not in compliance with the requirements of the China Securities Regulatory Commission (“CSRC”), including because Futu continued to conduct securities business, public fund sales business, and futures business in mainland China without obtaining the requisite licenses or approval; as a result, Futu was reasonably likely to face regulatory penalties, including the disgorgement of ill-gotten gains and other penalties; and
as a result of the foregoing, Futu’s financial results were overstated; and as a result of the foregoing, defendants’ positive statements about Futu’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis. What's Next for Futu Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm’s site: bgandg.com/FUTU. or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Futu you have until August 25, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Futu Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys’ fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Futu Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
Contact Info
Peretz Bronstein, Esq. or Nathan Miller
Bronstein, Gewirtz & Grossman, LLC
917-590-0911 | [email protected]
Attorney advertising.
Prior results do not guarantee similar outcomes.
, /PRNewswire/ -- MAG Capital Partners today announced it has completed the sale of more than 1.37 million square feet of long-term, net-leased industrial assets primarily acquired through its MAGCP Industrial Fund II, LP, in a six-property, ~$89 million transaction with Fundamental Income Properties, a wholly-owned subsidiary of Starwood Property Trust (NYSE: STWD).
Dax T.S. Mitchell, principal and co-founder of MAG Capital Partners, said, "MAG Capital Partners continues to scale its various platforms, all focused on supporting U.S. manufacturers with growth capital needs through industrial real estate and corporate investment. This transaction is a testament to the strength and quality of the middle market, incredible operators, sponsors and the important role of manufacturing as a powerful American economic driver.
"The future is bright for net lease industrial," stated Mitchell.
The triple-net-lease portfolio consists of six industrial manufacturing properties across the Midwest. John Dehn and Eric Wood, senior vice presidents of MAG Capital Partners' Phoenix office, worked on the disposition for the seller.
"The opportunity to close this portfolio with Fundamental Income speaks to the quality of our underlying investments," remarked Wood. "We have known the founders for many years and look forward to working with the team again."
About MAG Capital Partners, LLC
Founded in 2015 by Dax T.S. Mitchell and Andrew Gi, Dallas-based MAG Capital Partners invests in net-leased industrial properties and small-mid-cap operating companies in the U.S. Headquartered at Old Parkland, the firm makes acquisitions through its industrial real estate funds, its multi-tenant industrial vehicle, SWORD Industrial Partners, and private equity platform, MAGCP Equity.
For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Aduro Clean Technologies Inc. (ADUR - Free Report) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.
Aduro Clean Technologies Inc. is a member of our Business Services group, which includes 246 different companies and currently sits at #7 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. Aduro Clean Technologies Inc. is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for ADUR's full-year earnings has moved 12.2% higher. This means that analyst sentiment is stronger and the stock's earnings outlook is improving.
According to our latest data, ADUR has moved about 37.7% on a year-to-date basis. Meanwhile, stocks in the Business Services group have lost about 9.6% on average. This means that Aduro Clean Technologies Inc. is outperforming the sector as a whole this year.
Another stock in the Business Services sector, Usio Inc (USIO - Free Report) , has outperformed the sector so far this year. The stock's year-to-date return is 48.5%.
The consensus estimate for Usio Inc's current year EPS has increased 43.8% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, Aduro Clean Technologies Inc. belongs to the Technology Services industry, which includes 121 individual stocks and currently sits at #91 in the Zacks Industry Rank. Stocks in this group have lost about 6.5% so far this year, so ADUR is performing better this group in terms of year-to-date returns.
On the other hand, Usio Inc belongs to the Financial Transaction Services industry. This 37-stock industry is currently ranked #86. The industry has moved -10.1% year to date.
Going forward, investors interested in Business Services stocks should continue to pay close attention to Aduro Clean Technologies Inc. and Usio Inc as they could maintain their solid performance.
It has been about a month since the last earnings report for Cerebras (CBRS - Free Report) . Shares have added about 15.1% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Cerebras due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
Cerebras Q1 Earnings Beat Estimates, Revenues Increase Y/YCerebras reported a first-quarter 2026 loss of 4 cents per share, 71.43% narrower than the Zacks Consensus Estimate of a loss of 14 cents. The GAAP net loss per share narrowed year over year to 22 cents from 46 cents.
Revenues were $193.4 million, up 94% year over year and 13% sequentially, and topped the consensus estimate by 7.04%. Strength was driven by demand for AI infrastructure, with cloud and other services revenues up 178% and a new OpenAI agreement for 750 megawatts of high-speed inference compute. Core revenues, a non-GAAP measure that excludes customer warrant amortization and data center pass-through items, were $191.3 million, up 92% from the year-ago quarter.
The quarter benefited from strength across hardware and cloud-based offerings. Hardware revenues were $110.6 million, rising 59% year over year, while cloud and other services revenues were $82.8 million, reflecting the rapid adoption of Cerebras’ AI infrastructure platform.
Cerebras Gains From Strategic AI DealsThe company announced a multi-year deal with OpenAI valued at more than $20 billion. Under the agreement, OpenAI will deploy 750 megawatts of Cerebras’ high-speed inference compute over the next several years.
Cerebras also co-launched Codex-Spark, a model built for near-instant coding workflows where latency matters. The model delivers more than 1,000 tokens per second, underscoring the company’s focus on faster inference for interactive AI applications.
CBRS Expands Cloud Reach With AWSCerebras began a multi-year partnership with Amazon’s cloud computing platform, Amazon Web Services (AWS), to bring fast inference to a broader base of startups, AI-native companies and enterprises. The partnership expands the company’s distribution reach at a time when demand for low-latency AI infrastructure continues to scale.
The companies plan to launch a disaggregated inference strategy. AWS Trainium 3 chips will perform the prefill stage, while the Cerebras CS-3 will handle high-speed inference for decoding, combining the strengths of both platforms.
Cerebras’ Product Trials Add MomentumThe company launched enterprise customer trials of Kimi K2.6 and Gemma 4 during the quarter. Kimi K2.6 is an open-weight frontier model, and the first trillion-parameter model served on Cerebras.
Kimi K2.6 achieved performance approaching 1,000 tokens per second, as independently measured by Artificial Analysis. Gemma 4 31B, part of Google DeepMind’s open-weight Gemma family, runs an order of magnitude faster on Cerebras based on scores on the Artificial Analysis Intelligence Index.
CBRS’ Q1 Operating DetailsIn the first quarter of 2026, the GAAP gross margin was 45%. Hardware’s gross margin was 41%, while cloud and other services’ gross margin came in at 49%.
The core gross margin was 47%. The core hardware gross margin was 42%, whereas the core cloud and other services gross margin was 53%, showing a stronger profitability profile for the company’s non-GAAP cloud and services operations.
Operating expenses totaled $101.2 million. Research and development expenses were $75.5 million, sales and marketing expenses were $14.7 million, and general and administrative expenses were $11 million, reflecting continued investment in product innovation and market expansion.
The GAAP loss from operations was $15 million compared with $28.5 million in the year-ago quarter. The core operating loss narrowed to $3.5 million from $19.3 million a year earlier.
In the first quarter of 2026, adjusted EBITDA turned positive at $12.7 million from a loss of $15.4 million in the prior year.
CBRS’ Balance SheetThe balance sheet strengthened meaningfully. As of March 31, 2026, cash, cash equivalents, restricted cash, and short-term investments were $3.3 billion.
Net cash provided by operating activities was $12.3 million compared with net cash used in operating activities of $54.9 million.
CBRS’ Outlook Signals Continued ExpansionFor the second quarter of 2026, Cerebras expects core revenues of $194 million, implying 88% year-over-year growth. The core gross margin is expected to be 36-38%.
For 2026, management expects core revenues of $855-$865 million, indicating a 69% year-over-year surge at the midpoint. The core gross margin is projected to be 38-41%.
How Have Estimates Been Moving Since Then?It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 27.2% due to these changes.
VGM ScoresCurrently, Cerebras has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Cerebras has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
HomeIndustriesTech StocksTech StocksEarnings quadrupled on paper, but an analyst calls that an ‘illusory’ performance propped up by unrealized gains from equity investmentsJuly 23, 2026, 10:28 a.m. ET
Alphabet was once a cash-flow machine, but it’s seeing a fall from grace.
The company just reported its first-ever quarter of negative free cash flow on the heels of an unrelenting artificial-intelligence spending spree. It’s become the subject of fierce debate on Wall Street, especially since Alphabet GOOG GOOGL also lifted its capital-expenditure forecast for the year, leaving room for that spending to surpass $200 billion.
SpaceX SPCX shares fell more than 3% on Thursday as investors awaited the company's delayed Starship test flight, a mission widely viewed as a key catalyst for the newly public space and artificial intelligence company.
The stock traded around $111.35 in early trading after tumbling 6.7% on Wednesday, extending a volatile stretch following its record-setting initial public offering.
Broader markets were also weaker, with futures tied to the S&P 500 and Dow Jones Industrial Average down 1.2% and 1.1%, respectively.
Investor attention is centered on SpaceX's 13th Starship test flight, scheduled to lift off from Texas later today.
The launch was originally planned for July 16 but was postponed for a week because of an engine issue.
The mission is expected to be closely watched by investors looking for evidence that the company can continue advancing its launch capabilities as it seeks to justify its premium valuation.
Shares have struggled since their initial surge following the IPO, with valuation concerns weighing on sentiment.
According to the information provided, SpaceX trades at roughly 40 times estimated 2026 sales, a multiple that investors have questioned given the company's size and current financial profile.
Bearish investors have continued to add to their positions as the stock declined below its IPO price.
According to Reuters, citing Ortex Technologies data through Tuesday, short sellers are sitting on an estimated $15.5 billion in paper profits since SpaceX's mid-June listing.
The stock has fallen below its $135 IPO price after reaching a post-listing high of $225.64 and dropped to a record low of $115.26 on Wednesday.
"There is no sign of short sellers taking profits on SpaceX," Ortex co-founder Peter Hillerberg told Reuters.
"If anything they are leaning in harder," Hillerberg added.
According to Ortex, approximately 360 million SpaceX shares, representing about 56% of the free float, were on loan through Tuesday, indicating sustained bearish positioning.
Chief Executive Elon Musk responded earlier this week with a warning aimed at investors betting against the company.
“Survival probability of firms who maintain significant short position in SPCX over time is very low,” Musk wrote in a post on X.
Analysts remain constructiveDespite the recent share price weakness, Wall Street analysts continue to maintain a largely positive outlook on SpaceX.
According to LSEG data, 27 of the 32 analysts covering the stock recommend buying it, while four have Hold-equivalent ratings and one recommends selling.
Supportive analysts argue that the company's Starlink satellite internet business, government launch operations, and Musk's history of attracting investor interest justify a valuation premium despite SpaceX reporting a net loss of nearly $5 billion last year.
Analysts have also identified Thursday's Starship test flight as a potential catalyst, with investors expected to assess the company's execution in its launch business ahead of its upcoming earnings report and the continued expansion of its public float.
SPCX stock is moving. See the chart and price action here. Alphabet’s AI Spend WarningStill, Alphabet shares dropped after AI capex overwhelmed the company’s operating cash flow.
Alphabet spent $44.9 billion on capital projects during the quarter. Operating cash flow reached $39.1 billion, leaving the company with negative free cash flow of $5.9 billion. It marked Alphabet’s first negative free-cash-flow quarter since its 2004 initial public offering.
Microsoft Corp. (NASDAQ:MSFT) is tracking toward roughly $190 billion in calendar-year AI spending, and combined hyperscaler capex could approach $725 billion this year.
SpaceX’s Capex ChallengeThose figures illustrate the scale of SpaceX’s challenge.
SpaceX inherited an expensive AI operation through its combination with xAI. Training advanced models requires chips, data centers, networking equipment and enormous amounts of electricity. The costs arrive before AI contracts produce dependable returns.
SpaceX has begun monetizing its AI infrastructure. Reflection AI agreed to purchase computing capacity from SpaceXAI, and Google also signed a multiyear computing agreement with the company.
Yet Alphabet’s quarter shows why revenue growth may not settle the debate. Investors increasingly want proof that AI spending can produce cash, margins and sustainable returns.
Rocket development offers visible milestones while AI infrastructure provides fewer clear checkpoints.
For SpaceX stock, Starship’s progress remains important, but the larger valuation test may be whether SpaceX can avoid the cash-flow pressure now hitting the world’s richest tech companies.
SPCX Stock Price Activity: SpaceX shares were down 0.75% at $114.40 at the time of publication Thursday, according to Benzinga Pro data.
Photo: JRdes / Shutterstock
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Wall Street expects a year-over-year decline in earnings on lower revenues when CNX Resources Corporation. (CNX - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis company is expected to post quarterly earnings of $0.57 per share in its upcoming report, which represents a year-over-year change of -3.4%.
Revenues are expected to be $407.14 million, down 9.5% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 13.08% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for CNX Resources?For CNX Resources, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -1.75%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination makes it difficult to conclusively predict that CNX Resources will beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that CNX Resources would post earnings of $0.93 per share when it actually produced earnings of $1.21, delivering a surprise of +30.11%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
CNX Resources doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
An Industry Player's Expected ResultsAnother stock from the Zacks Oil and Gas - Exploration and Production - United States industry, Antero Resources (AR - Free Report) , is soon expected to post earnings of $0.77 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of +120%. Revenues for the quarter are expected to be $1.5 billion, up 15.9% from the year-ago quarter.
The consensus EPS estimate for Antero Resources has been revised 12.5% lower over the last 30 days to the current level. However, an equal Most Accurate Estimate has resulted in an Earnings ESP of 0.00%.
This Earnings ESP, combined with its Zacks Rank #3 (Hold), makes it difficult to conclusively predict that Antero Resources will beat the consensus EPS estimate. The company could not beat consensus EPS estimates in any of the last four quarters.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Wall Street expects a year-over-year increase in earnings on higher revenues when Apple (AAPL - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on July 30, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.
Zacks Consensus EstimateThis maker of iPhones, iPads and other products is expected to post quarterly earnings of $1.88 per share in its upcoming report, which represents a year-over-year change of +19.8%.
Revenues are expected to be $108.79 billion, up 15.7% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.49% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Apple?For Apple, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +2.46%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Apple will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Apple would post earnings of $1.92 per share when it actually produced earnings of $2.01, delivering a surprise of +4.69%.
Over the last four quarters, the company has beaten consensus EPS estimates four times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Apple appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of AAPL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Wall Street is cutting Tesla after a bruising earnings miss, while Apple’s analyst community quietly nudges targets higher on a surging iPhone 17 cycle. Our proprietary model reflects that divergence.
Apple (NASDAQ:AAPL | AAPL Price Prediction) closed at $325.89 on July 22, and the 24/7 Wall St. price target for Apple is $361.72, implying 11% upside over the next 12 months. Our recommendation is a buy at a 90% confidence level.
24/7 Wall St. Price Target Summary Metric Value Current Price $325.89 24/7 Wall St. Price Target $361.72 Upside 11.0% Recommendation BUY Confidence Level 90% An iPhone 17 Cycle That Keeps Surprising to the Upside Apple shares are up 20.1% year to date, 9.72% in the last month, and 52.61% over the trailing year.
Fiscal Q2 2026 revenue climbed 16.6% year over year to $111.18 billion, EPS came in at $2.01 versus $1.94 expected, and iPhone revenue surged to $56.99 billion on what Tim Cook called “extraordinary demand for iPhone 17 lineup.”
Services set an all-time record at $30.98 billion. Bloomberg reports Apple is preparing a major Mac refresh this fall including its first OLED touchscreen MacBook Pro, and prediction markets price a 96.6% probability that an iPhone 18 launches in 2026.
The Case for $380 and Higher Apple’s installed base of over 2.5 billion active devices becomes the launchpad for a Services business compounding at double-digit rates, a paid Apple Intelligence tier, and a rumored foldable iPhone (prediction markets assign 88.5% odds of a foldable arriving before 2027).
Layer on a fresh $100 billion buyback authorization and expanding operating margins, and our internal bull case lands at $378.01, a 16% one-year return. That aligns with the AI-driven Mac refresh narrative.
What Could Go Wrong Apple lost a $634 million Masimo patent verdict appeal, Greater China revenue remains lumpy, and tariff escalation would hit component supply. The consensus analyst target of $318.25 sits below the current price.
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Our bear case pegs Apple at $307.39, a 5.68% pullback. Insider activity has been net selling. The P/E ratio of 43 looks stretched only if you ignore that quarterly earnings just grew 21.8%, which arguably justifies the multiple.
How Apple Stacks Up Against Tesla and Microsoft Tesla (NASDAQ:TSLA) just missed Q2 EPS at $0.33 versus $0.54 expected, printed negative $1.09 billion in free cash flow, and trades at a forward P/E of 161 versus Apple’s 34. Tesla is down 16.83% year to date while Apple is up 20%. That valuation gap makes our Apple target look conservative on a growth-adjusted basis.
Microsoft (NASDAQ:MSFT) is the truer valuation peer, a scaled valuation peer with a diversified AI-driven software portfolio. Apple carries the richer multiple, but its 46.9% gross margin and Services flywheel support the premium. Against this peer set, our $361.72 target reads as reasonable.
Company Forward P/E YTD Return Apple 34 20.1% Tesla 161 -16.83% The Bull Case Framework for Apple The 24/7 Wall St. price target for Apple is $361.72, a buy at 90% confidence. Earnings acceleration of 21.8% YoY growth into an installed base of 2.5 billion devices is rare at this market cap.
I would buy if iPhone 17 momentum carries into a strong holiday quarter and Services stays above $30 billion. I would stay on the sidelines if China revenue weakens materially or tariffs hit margins.
Year 24/7 Wall St. Price Target 2026 $361.72 These projections assume Apple executes on Services growth and the iPhone upgrade cycle. Significant upside or downside could result from a foldable iPhone launch, Apple Intelligence monetization, or a China revenue reset.
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Instagram is now banning pickup artists and pranksters who use Meta glasses
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Senior Correspondent covering technology and culture
Mark Zuckerberg is wearing Meta glasses, which have a problem with creepy pickup artists and pranksters using them. Bloomberg/Getty Images Instagram is cracking down on videos shot on Meta glasses that feature harassment of strangers in public places, such as the obnoxious prank videos that Business Insider reported on this spring.
In an Instagram story, Instagram head Adam Mosseri said that such video content would now be banned on the platform.
"If you're posting content that is taking advantage of people and harassing them, like a lot of these pickup line kind of videos that we've heard of and seen, then we're going to take the content down," Mosseri said in response to a question on his Instagram stories last week. "We don't want people to be surreptitiously taking videos of other people and harassing them and then posting them on our platform. So we're trying to fight that every way we can."
I wrote about the proliferation of videos on TikTok and Reels where people film themselves doing pranks on service workers, like cashiers or fast food workers, while wearing Meta glasses. Often, these pranks verge on harassment or are just plain obnoxious behavior, like putting fart spray into a candle at Walmart and then asking employees to smell it.
Another noxious genre is from pick-up artists who use the glasses to film themselves approaching women at gyms or on the street. While these interactions are sometimes positive, there's an awkward moment when the women don't realize they're being filmed at first.
A light glows on a pair of Meta Ray-Bans to signal that its video is active. Bloomberg/Getty Images It's unclear how many videos have been removed under this new policy. Business Insider found that two large accounts of pickup artists who filmed themselves approaching women in public while wearing the glasses had been deactivated. (Both previously had more than a million followers.) A Meta spokesperson confirmed to Business Insider that these accounts were booted for violating the policy about posting harassing content that had been filmed with the glasses.
Meta did not directly respond to questions about how this new policy is being enforced or what exactly constitutes a violation.
The glasses have an indicator light that turns on when you're recording. In older models, people could tamper with it or hide the light by drilling holes or covering it with tape or film. A new update will now disable the camera if someone tries to tamper with the light, Meta has said.
But even when working, a small light in the corner of glasses isn't necessarily a universally recognized sign that someone is recording you, and can be easily missed, especially outside in bright light. I recently had a conversation with someone wearing the glasses and didn't notice their indicator light was on at all until they brought it to my attention.
This new crackdown may be influenced by Meta's desire not to have its glasses referred to as "pervert glasses" — a nickname that's been gaining steam on social media lately.
Meta glasses may still be controversial, and people are rightfully wary of being recorded in public spaces. But removing videos from people who are profiting from posting content of nasty pranks or sleazy pickup tactics while using the videos is at least a step in the right direction.
Read next
Katie Notopoulos You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Katie Notopoulos is a senior correspondent at Business Insider who writes about technology, business, and culture. She covers topics such as internet culture, Big Tech, retail, AI, parenting in the digital age, and personal tech.Previously, Katie was a tech reporter at BuzzFeed News and has written for The Atlantic, The New York Times, Fast Company, and MIT Technology Review. Based in New York, you can reach her by email [email protected] or find her on Twitter. Bluesky, and Threads @katienotopoulos.Some of her stories include:
Google AI said to put glue in pizza — so I made a pizza with glue and ate itThe Zuckermoon is overGen Z doesn't want to say "hello" when answering the phone. I'm concerned. Wait, is Walmart cool now?Mark Zuckerberg has created the saddest place on the internet with Meta AI's public feedHow Instagram got its mojo backAm I the JD Vance of my group chat?We need to talk about whatever's happening with Starbucks' drinksThis chart shows a key reason why millennial parents are miserableIt's not just you. Eggshells really are chipping more. Meta Instagram
Meta’s newest advertisement begins with a black-and-white shot of an eye, showing us what someone sees as they read countless panicked headlines about how AI is going to take our jobs, isolate us, and spark a global crisis.
“Some people will have you believe AI is going to make us feel less connected. That it’s going to leave us behind,” a voiceover says. “We couldn’t disagree more.”
Suddenly, the video shifts to color, and shows a cycle of different people opening their eyes and smiling. Then, we see a couple dancing on a rooftop, pointing at a rainbow; a group of teens swimming in a lake; a child frolicking in a field; friends embracing after time apart.
“Call us optimists. Call us dreamers. Call us whatever the hell you want. But we’re betting on people, and we like those odds,” the voiceover says. “The future is for everyone.”
That’s a nice sentiment — pretty convenient for a company betting hundreds of billions of dollars that AI will revolutionize humanity. But the strangest part of the advertisement is not that we’re watching these happy moments play out via Instagram posts. It’s that the soundtrack to the ad is the David Bowie song “Five Years.”
If you are not familiar with this song, I urge you to give it a listen, read the lyrics, and think about what it is trying to say. It seems clear to me, but I studied poetry in college, so as a control for this experiment, I asked my brother — a blockchain analyst who loves Claude Code and does not read for fun — if he could tell me what the song is about.
“I thought climate change at first, then zombie apocalypse, then an asteroid hitting the earth,” he told me. He is correct. It is a song about the human race panicking after learning they will die in a mass extinction event in five years.
Image Credits:Texts from my brother, a consenting participant in this literary experiment If you’re not familiar with Bowie’s music, this track might sound happy and inspiring, matching the ad’s upbeat tone. The part of the song that is used for the advertisement was probably chosen because it uses the word “people” over and over again, and without the context of the song, it’s not clear what it’s about.
But if we look at the lines directly preceding this section:
News had just come over
We had five years left to cry in
News guy wept and told us
Earth was really dying
Cried so much his face was wet
Then I knew he was not lying
We “had five years left to cry in” and the “earth was really dying.” It’s pretty bleak.
It is not reassuring to convince people that AI is going to make the world better while playing a song about the end of the world, and yet, this contradictory musical choice seems to have sailed right past everyone at Meta, including CEO Mark Zuckerberg.
“Meta has always believed in giving people the power to share, connect, and shape your world in the ways you want,” he wrote alongside the video. “As we enter this next wave with AI, we continue to believe the future is for everyone. We’re focused on giving every person the tools to reach your full potential and making sure the benefits of technology are distributed to everyone.”
Then again, tech leaders are not known for their literary analysis skills. Meta’s Oculus used to give new hires copies of the science fiction novel “Ready Player One,” which is set in a dystopia in which a tech company making virtual reality products becomes overly powerful and evil. OpenAI CEO Sam Altman has directly cited inspiration from the movie “Her,” which warns us about what can go wrong when we use AI for emotional support. Palantir, a company that builds AI surveillance systems for the government, is named after Palantir, a seeing stone from the “Lord of the Rings” franchise that the Dark Lord uses to spy on his enemies. Elon Musk is currently throwing a fit about the “accuracy” of Christopher Nolan’s blockbuster adaptation of “The Odyssey,” a story with such realistic elements as sea monsters, magic, and divine intervention. These guys make a great argument for the value of studying the humanities.
Sci-Fi Author: In my book I invented the Torment Nexus as a cautionary tale
Tech Company: At long last, we have created the Torment Nexus from classic sci-fi novel Don't Create The Torment Nexus
— Alex Blechman (@AlexBlechman) November 8, 2021 Meta isn’t alone in its recent promotional foibles. Instead of racing to build AGI, the top AI companies seem to be fighting over who can make the creepiest advertisement. A few weeks ago, Anthropic released an eerie video of its own. As my colleague Lucas Ropek described it:
The ad begins with a video of a burning house (not exactly a heartwarming start) before pivoting to a series of still images. These images include a crowd of people being surveilled by facial recognition, a homeless person sleeping on the street, rows upon rows of tombstones in a cemetery, and what appears to be a group of laborers toiling in a mine where (presumably) raw materials for smartphones are being dug up.
Meanwhile, a voice-over track features different people asking questions like “Can AI be trusted?” and “Who’s gonna hit the brakes if we need to?”
Anthropic is trying to convince us that it understands the risks AI poses to society, and therefore, this is the company that people can trust to develop AI responsibly. The message it actually conveys feels closer to the mood of Bowie’s “Five Years.”
OpenAI CEO Sam Altman responded to the Anthropic ad, “I thought this was satire, kept looking for the handle to be spelled c1audeai or something.”
As these companies spar to control the public perception of AI, their efforts don’t seem to be making much progress. A recent Pew survey found that only 16% of Americans think that AI’s impact on society over the next twenty years will be positive, and 40% believe it will have a negative impact. Better luck next time, Meta.
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Amanda Silberling is a senior writer at TechCrunch covering the intersection of technology and culture. She has also written for publications like Polygon, MTV, the Kenyon Review, NPR, and Business Insider. She is the co-host of Wow If True, a podcast about internet culture, with science fiction author Isabel J. Kim. Prior to joining TechCrunch, she worked as a grassroots organizer, museum educator, and film festival coordinator. She holds a B.A. in English from the University of Pennsylvania and served as a Princeton in Asia Fellow in Laos.
You can contact or verify outreach from Amanda by emailing [email protected] or via encrypted message at @amanda.100 on Signal.
The market has spent the past two years rewarding companies tied to artificial intelligence, robotics, and next-generation infrastructure. Investors are increasingly looking beyond a company’s original business and looking more closely at which ecosystem is building it.
That shift is key because some of today’s biggest winners no longer fit neatly into a single industry. Tesla (NASDAQ:TSLA | TSLA Price Prediction) and SpaceX (NASDAQ::SPCX) are prime examples. Both are evolving into diversified technology platforms, and their future combination is looking more likely in the near future.
The Market Is Punishing Both Stocks, but for Different Reasons Tesla gave investors another reminder that high expectations can be difficult to satisfy. The electric vehicle maker reported second-quarter earnings yesterday that missed Wall Street’s expectations, and shares are down roughly 8% in premarket trading today following the earnings release.
The disappointing reaction reflects more than weaker vehicle sales. Investors increasingly view Tesla as a company whose future extends well beyond automobiles. Electric vehicles remain the foundation of the business, but management continues to devote enormous resources to energy storage, autonomous driving, humanoid robotics, artificial intelligence, and manufacturing automation. Those businesses could eventually represent a larger share of Tesla’s value than EVs themselves.
SpaceX has experienced a different kind of disappointment. After debuting at $135 per share last month, the stock opened at $150, climbed to $225 within days, and has since fallen to about $115. That’s a decline of roughly 49% from its post-IPO peak in just a few weeks.
Sharp drops after hot IPOs aren’t unusual. Early enthusiasm often gives way to more realistic valuations once investors separate excitement from fundamentals.
“I mean, as you can tell from the many collaborations on so many fronts with SpaceX and there’s a lot — there’s more and more overlap…but obviously, we can’t talk about combining companies and that kind of thing on an earnings call. It’s got to be done with the appropriate process.”
Even so, the strategic logic is becoming easier to see. Neither company is defined solely by its legacy business anymore.
Company Legacy Business New Growth Platforms Tesla Electric vehicles Energy storage, Optimus robotics, AI, autonomous driving, manufacturing software SpaceX Rocket launches and satellite deployment Starlink connectivity, AI infrastructure, government services, communications, defense technologies Tesla needs massive computing power, advanced communications, artificial intelligence, and manufacturing expertise. SpaceX continues expanding Starlink while building technologies that increasingly overlap with AI infrastructure and autonomous systems. They have the massive Terafab chipmaking joint venture underway, too.
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That doesn’t guarantee a merger happens. Antitrust regulators would likely examine any transaction closely, while corporate governance questions would also need answers. The regulatory path could prove long and complicated.
Granted, a full merger isn’t the only possibility. Joint ventures, technology-sharing agreements, or cross-investments could deliver many of the same benefits while avoiding some regulatory hurdles.
Long-Term Investors Should Focus Beyond Today’s Headlines The biggest risk for investors is assuming either company can be valued only on today’s earnings or today’s business.
Tesla’s earnings disappointment overshadowed the fact that management continues investing aggressively in businesses that could reshape transportation, energy, and automation over the next decade. Likewise, SpaceX is becoming more than a launch provider as Starlink, AI infrastructure, and adjacent technologies mature.
Ironically, today’s market weakness may offer patient investors a better entry point than either stock provided just weeks ago. Tesla has pulled back following earnings, while SpaceX trades below its IPO price after one of the quickest post-offering reversals in recent memory.
Key Takeaway In short, betting on a Tesla-SpaceX merger today would be speculative. Regulators could object, shareholders would need to give approval, and management may ultimately pursue a different structure altogether.
Regardless, investors don’t necessarily need a merger for either investment to succeed. The larger story is that both companies are evolving into diversified technology platforms centered on AI, automation, communications, robotics, and energy. Those trends are likely to drive more value over the next decade than electric vehicles or rocket launches alone.
Buying today may not prove to be the absolute bottom. In the end, however, long-term investors willing to tolerate volatility have a compelling case for owning either company — and if some form of combination eventually emerges, it could become one of the most influential technology partnerships of the next decade.
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U.S. stocks traded lower this morning, with the Nasdaq Composite falling more than 400 points on Thursday.
Following the market opening Thursday, the Dow traded down 0.95% to 51,720.30 while the NASDAQ declined 1.58% to 25,286.26. The S&P 500 also fell, dropping, 0.86% to 7,434.23.
Leading and Lagging Sectors
Industrials shares jumped by 2.2% on Thursday.
In trading on Thursday, communication services stocks fell by 4.4%.
Top Headline
Tesla Inc. (NASDAQ:TSLA) shares dipped more than 12% on Thursday after the company reported mixed second-quarter financial results.
Tesla reported second-quarter revenue of $28.24 billion. The total beat a Street consensus estimate of $25.71 billion, according to data from Benzinga Pro. Second-quarter earnings of 33 cents per share missed a Street consensus estimate of 50 cents per share.
Equities Trading UP
Equities Trading DOWN
Commodities
In commodity news, oil traded up 5.5% to $91.64 while gold traded down 2.3% at $4,056.00.
Silver traded down 3.5% to $58.170 on Thursday, while copper fell 1.5% to $6.3960.
Euro zone
European shares were lower today. The eurozone’s STOXX 600 fell 1.1%, while Spain’s IBEX 35 Index dipped 1.3% London’s FTSE 100 fell 0.7%, Germany’s DAX declined 1.2%, while France’s CAC 40 tumbled 1.6%.
Asia Pacific Markets
Asian markets closed mixed on Thursday, with Japan’s Nikkei 225 gaining 0.46%, Hong Kong’s Hang Seng index surging 1.28%, China’s Shanghai Composite rising 0.25% and India’s BSE Sensex falling 0.47%.
Economics
U.S. initial jobless claims US fell by 22,000 to 187,000 in the week ending July 18, compared to market estimates of 212,000. The Chicago Fed National Activity Index climbed to -0.02 in June from -0.19 in the previous month. Photo via Shutterstock
Market News and Data brought to you by Benzinga APIs
Tesla Inc. (NASDAQ:TSLA) spent much of its second-quarter update talking about Cybercab production, Robotaxi expansion and artificial intelligence. But the company's fastest-growing business wasn't any of those.
Tesla stock TSLA plunged 13% on Thursday after the electric vehicle maker reaffirmed plans to sharply increase spending on artificial intelligence infrastructure.
The move overshadowed stronger-than-expected revenue and reinforced investor concerns over rising capital expenditure and weakening cash generation.
The stock extended losses after closing 1.3% lower on Wednesday. The stock's market cap is now near the $1 trillion mark.
Tesla reported adjusted earnings of 33 cents per share, below analysts' expectations of 51 cents, while revenue rose to $28.24 billion from $22.5 billion a year earlier, exceeding consensus estimates of $25.71 billion.
The company also reported negative free cash flow for the quarter as capital expenditure surged 142% year over year to $5.79 billion.
Tesla reaffirmed plans to spend more than $25 billion this year as it expands investments in artificial intelligence infrastructure, autonomous driving, robotics, and computing capacity.
Alphabet shares also fell more than 6% after the Google parent reported negative free cash flow and raised its 2026 capital expenditure forecast to between $195 billion and $205 billion, while warning spending would increase further in 2027.
The declines highlighted growing investor concerns that spending on artificial intelligence is rising faster than cash generation across the technology sector.
Tesla said net income declined 5% year over year to $1.11 billion, or 32 cents per share, from $1.17 billion, or 33 cents per share, a year earlier.
Automotive revenue increased 23% to $20.52 billion, while revenue from the company's energy business, including solar and battery storage systems, rose 13% to $3.14 billion.
Revenue from services and other businesses, including vehicle repairs outside warranty, climbed 50% to $4.58 billion.
Despite stronger automotive revenue, Tesla's gross margin fell to 16.8% from 17.2% a year earlier, missing analysts' expectations of 19.4%, according to StreetAccount.
The company attributed the pressure in part to lower average selling prices after introducing lower-cost versions of its Model 3 and Model Y vehicles following the retirement of the higher-priced Model S and Model X.
AI investment remains priorityTesla said it continues to expand infrastructure supporting its long-term artificial intelligence strategy.
“Capacity build out and ramp related to our multi-year infrastructure initiatives, including AI compute, solar, battery material, and semiconductor manufacturing are underway,” the company said in its shareholder presentation.
Chief Executive Elon Musk defended the company's elevated spending during Wednesday's earnings call.
“This is a massive capex year. I’m confident that all the things that we’re investing in will yield incredible returns. Really, maybe the best capex returns that we’ve ever seen,” Musk said.
Tesla also said it is installing first-generation production lines for Optimus, its humanoid robot, and expects production to begin soon.
Executives told investors that the company's fleet of autonomous Cybercab vehicles has now completed 380,000 unsupervised miles, pointing to continued progress in its autonomous driving program.
Analysts remain positive on long-term outlookDespite the market's negative reaction, several Wall Street firms maintained constructive long-term views while lowering their price targets.
JPMorgan analyst Rajat Gupta lowered his price target on Tesla to $445 from $475 while maintaining a Neutral rating.
Gupta said Tesla shares are "likely to remain range-bound near-term" as forward earnings estimates continue to fall amid rising investment spending.
Mizuho analyst Vijay Rakesh also cut his price target to $450 from $480 while reiterating an Outperform rating.
Rakesh said Tesla remains "well-positioned leading physical AI" through its Cybercab platform, with humanoid robotics offering a longer-term growth opportunity.
He added that favorable regulatory tailwinds should help offset near-term headwinds from European tariffs and the repeal of US EV tax credits, with Tesla likely to face less pressure than its peers.
Piper Sandler maintained its Overweight rating and $500 price target.
Analyst Alexander Potter said the post-earnings selloff was not surprising despite improving long-term indicators.
However, he said Tesla will need to "disprove doubts re: Optimus and Cybercab" before the stock can break out of its current trading range, adding that while he remains optimistic, "catalyst timing is difficult to predict."
Tesla shares had fallen about 11% this month and 17% for the year through Wednesday's close before Thursday's selloff.
The decline has coincided with weakness in SpaceX shares, which have fallen more than 40% from their post-listing peak following the company's June market debut.
Tesla (TSLA) shares plummeted Thursday morning after the electric vehicle maker's quarterly earnings missed estimates as infrastructure spending ballooned.
SummaryTesla, Inc. remains fundamentally a two-model car company, with Model 3 and Model Y accounting for over 97% of Q2 deliveries.Despite record energy storage growth, TSLA's margins face pressure from rising input costs and intensifying competition, especially from Chinese suppliers.TSLA's robotaxi and robotics ambitions continue to miss milestones, leaving little tangible progress to justify its ultra-premium valuation.TSLA is valued as a high-growth tech disruptor, but its core automotive business and nascent ventures do not support its current market capitalization. Getty Images
Investor expectations heading into Tesla, Inc.’s (TSLA) Q2 earnings announcement were rather more subdued than usual. Indeed, some of the company’s normally enthusiastic shareholders entered the quarter sounding downright impatient.
Questions submitted for the earnings call focused
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Key Takeaways Tesla's Q2 revenues beat estimates, but EPS missed as management prioritized expansion over margins.Deliveries rose 25% to 480,126, while active FSD subscriptions climbed 56% to 1.48 million.Tesla expects 2026 CapEx above $25 billion as it scales robotaxi, Optimus, AI and manufacturing. Tesla, Inc. (TSLA - Free Report) used its second-quarter 2026 earnings call to stress expansion, not near-term margin protection. Management pointed to record deliveries, rising FSD adoption and broader robotaxi activity, while also making clear that 2026 is a heavy investment year.
That framing mattered because the quarter mixed a revenue beat with an earnings miss. TSLA reported EPS of $0.33 compared with the Zacks Consensus Estimate of $0.50, a 34.00% miss, while revenues of $28.23 billion topped the consensus estimate of $25.80 billion by 9.40%.
TSLA Leans Into a Bigger Build-OutChief executive officer Elon Musk described Tesla’s current phase as one of unusually large capital deployment, tied to autonomy, robotics, semiconductors, batteries and solar manufacturing. He said the company is making what it views as some of its most important long-term infrastructure bets.
That posture was reinforced in the shareholder update, where Tesla said it is in its “largest and most exciting period of investment” and remains focused on long-term value creation even as scaling stays nonlinear.
The company’s outlook slide also kept the emphasis on capacity expansion, vertical integration and future AI, software and fleet-based profits rather than near-term earnings optimization. Tesla said Semi and Megapack 3 remain on schedule for production starting in 2026, while first-generation Optimus lines are being installed ahead of 2026 production.
Tesla Balances Delivery Strength With Cost PressureChief financial officer Vaibhav Taneja said vehicle demand continued to recover through the quarter, helping Tesla post record Q2 deliveries and its largest order backlog since 2023. The update deck showed total deliveries rose 25% year over year to 480,126, while active FSD subscriptions increased 56% to 1.48 million.
The financial picture was less clean. Revenues rose 26% year over year to $28.24 billion, but operating margin fell to 1.4% from 4.1% a year ago as operating expenses climbed 47% and free cash flow turned negative $1.09 billion.
Taneja said automotive margins were pressured by the absence of prior-quarter warranty and tariff benefits, while higher interest rate subvention costs also hurt results. He added that energy gross margin fell sharply because of a vendor cell warranty true-up, the loss of prior tariff benefits and lower industrial storage pricing.
TSLA Sees FSD and Robotaxi as Demand DriversMusk and Taneja both framed FSD as a growing sales catalyst rather than just a software attachment. Taneja said about 55% of North American deliveries included an FSD subscription at delivery, and he expects future monetization to lean more heavily toward subscriptions as Tesla removes the purchase option in most markets.
Tesla also widened the robotaxi story beyond Austin. The shareholder deck said robotaxi operations are now live in seven major metros, while the call detailed unsupervised service in Austin, Dallas, Houston, Miami, Orlando and Tampa, with Bay Area operations running with a safety driver.
Executive officer Ashok Elluswamy said Tesla had driven more than 380,000 unsupervised robotaxi miles across six cities with no notable incidents and was still compounding weekly miles at a double-digit rate. That was one of the clearest signs on the call that management sees autonomy scaling as an operating reality, not just a product roadmap.
Tesla’s Q&A Added Detail on Supply and PartnersAnalyst questions focused on whether Tesla can scale its newer bets without bottlenecks. In response to a Morgan Stanley question, Musk said suppliers including Samsung, TSMC, Panasonic and Micron are making major investments to support AI compute, batteries and other needs tied to Optimus and robotaxi.
Management also used Q&A to address regulation. Asked by a BofA analyst about evolving state rules, vice president of Vehicle Engineering Lars Moravy said Tesla wants regulations centered on performance outcomes rather than prescribed technical solutions.
A Wells Fargo analyst asked about Tesla’s expanding work with SpaceX. Musk and general counsel Brandon Ehrhart pointed to broader collaboration around Terafab, Digital Optimus and connectivity, including plans to integrate Starlink into Cybercab and other vehicles in markets where the network is active.
TSLA’s Spending Plans Stay AggressiveTaneja said CapEx more than doubled sequentially in Q2 and will increase further in the second half. Tesla still expects capital spending to exceed $25 billion in 2026 as it expands robotaxi, Optimus, AI compute, semiconductor and solar manufacturing capacity.
He also said Tesla is arranging debt facilities that could provide up to $30 billion of borrowing capacity to accelerate those investments. That marked one of the call’s most important capital allocation messages because it showed management is willing to use the balance sheet more actively to fund this build cycle.
The shareholder update paired that spending with a liquidity message. Tesla ended the quarter with $43.52 billion in cash, cash equivalents and short-term investments, down from $44.74 billion in Q1.
Tesla’s Tone Stayed Firmly Long TermThe broad tone from Musk and his team was confident, but not especially defensive about near-term profitability. Management repeatedly returned to factory utilization, software adoption, fleet expansion and infrastructure build-out as the priorities that matter most from here.
That left the quarter looking less like a margin story than a transition period. Tesla is asking investors to measure its progress through demand, deployment and capacity creation while it absorbs the costs of a much larger operating ambition.
TSLA’s Zacks SignalsTSLA currently carries a Zacks Rank #3 (Hold), along with a Value Score of F, Growth Score of A, Momentum Score of A and VGM Score of B, based on the provided Zacks data. Under the Zacks framework, a Hold-rated stock can still be owned, but the best return profile generally comes from Zacks Rank #1 (Strong Buy) or #2 (Buy) stocks paired with Style Scores of A or B. You can see the complete list of today’s Zacks #1 Rank stocks here.
Tesla’s A grades for Growth and Momentum and VGM Score of B point to stronger characteristics in those styles than in value. Still, Zacks says earnings estimate revisions remain the most important driver in the system, and the Zacks Rank can change after a results report as analyst estimates are updated.
Buried in Tesla’s earnings report’s cash flow statement is a $1.005 billion pretax unrealized gain on its SpaceX investment, equal to $763 million after tax.
While Tesla didn’t receive any cash or sell any shares, the after-tax gain accounted for roughly 68.5% of the company’s $1.114 billion GAAP net income. The revaluation of Tesla’s SpaceX investment is one of the quarter’s biggest contributors to the EV maker’s bottom line.
Even though Tesla didn’t sell a single SpaceX share or receive any cash from the investment.
SpaceX Bounty: Paper Gain, Not Cash ProfitThe gain resulted from an increase in the estimated value of its SpaceX investment, which it purchased earlier this year for $2.002 billion. The company owns less than 1% of SpaceX and does not control the aerospace company.
Tesla recorded a pre-tax $1.005 billion gain on the investment. Because the gain was non-cash, the company removed it when reconciling net income to operating cash flow and also excluded it from its non-GAAP earnings presentation.
The numbers put the investment into perspective. The pre-tax paper gain alone was more than two-and-a-half times Tesla’s operating profit (which was $398 million).
Tesla’s automotive, energy storage and services businesses collectively produced just $398 million of operating profit, while the accounting gain on its SpaceX investment added more than $1 billion before taxes.
So, nearly 70% of Tesla’s GAAP earnings came from a non-cash increase in the estimated value of its SpaceX stake—not from manufacturing or selling products.
Why Tesla’s GAAP And Adjusted Earnings Tell Different StoriesThe SpaceX gain was included in Tesla’s official GAAP earnings under accounting rules governing equity investments, even though the company did not monetize its stake.
The SpaceX gain also helps explain why Tesla reported different GAAP and adjusted earnings.
Tesla reported GAAP net income of $1.114 billion, which included the after-tax SpaceX gain. It also reported non-GAAP net income of $1.153 billion, excluding the $763 million after-tax SpaceX gain along with several other items, including $989 million of stock-based compensation expense, an $87 million digital-asset loss and certain tax adjustments.
Although Tesla removed the $763 million after-tax SpaceX gain, it added back an even larger $989 million stock-based compensation expense, along with other adjustments, resulting in slightly higher adjusted earnings.
Why Investors Should Watch ItThe disclosure doesn’t mean Tesla’s automotive business suddenly became less important, nor does it suggest the company generated an extra $763 million in cash.
Instead, it underscores how investments outside Tesla’s core operations can materially influence reported earnings under GAAP accounting. If SpaceX’s valuation continues to rise—or falls in future quarters—that stake could create meaningful swings in Tesla’s reported profit even if vehicle deliveries, energy storage deployments and operating performance remain largely unchanged.
For investors, the quarter served as a reminder that one of the biggest drivers of Tesla’s headline earnings wasn’t what happened inside its factories. It was the changing value of a minority stake in another Elon Musk company.
Photo courtesy: Rokas Tenys on Shutterstock.com
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HomeIndustriesAutomobilesEarnings ResultsEarnings ResultsTesla’s stock heads for its worst drop in a year after the company’s earnings call leaves Wall Street with more questions than answersJuly 23, 2026, 11:24 a.m. ET
Tesla’s earnings commentary wasn’t enough to justify the company’s big-spending ways, and its shares are sliding on Thursday.
“Commentary on key growth drivers, Optimus and Robotaxi, was muted given the magnitude of technology challenges even as [electric-vehicle] sales appear robust,” Oppenheimer analyst Colin Rusch said in a note to clients.
Business has been a little bumpy for Tesla (TSLA -13.23%) over the past couple of years. In fact, after delivering a record 1.8 million vehicles in 2023, its deliveries promptly dropped for two consecutive years. Last year was filled with speed bumps that extended beyond vehicle deliveries.
Then something intriguing happened: Tesla's second-quarter deliveries soared far above Wall Street's average estimates. Investors might be overlooking the most impressive part of the data -- that Tesla held its own in a brutal Chinese market while a number of domestic automakers did not.
Numbers jump unexpectedly On paper, the Q2 numbers were exactly the blowout delivery numbers Tesla needed after many months of bad news. Tesla delivered just over 480,000 vehicles globally during the second quarter. This was a solid 25% year-over-year gain and easily topped Wall Street analysts' estimates of about 406,000 vehicles. That result was the best Q2 of deliveries in Tesla's history.
Most investors keyed in on Tesla's results in Europe, and it's true that the region played a big role in the blowout Q2. While Tesla doesn't break out its delivery numbers by region, we can get a solid sense of the growth trend from the European Automobile Manufacturers' Association, which tracks registration data. That data from January through May this year showed a 77% year-over-year growth in Tesla registrations.
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Don't overlook the China result Despite Europe likely driving much of the Q2 surprise result, Tesla's decline of only 2% in China amid a softening economy, reduced electric vehicle (EV) incentives, and a brutal price war might actually be the more impressive feat.
Even BYD, China's juggernaut EV maker that's expanding rapidly around the globe, posted a 40% decline in domestic Chinese deliveries through the first half of the year, though this figure includes battery-electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs). BYD has turned its focus to exports to offset this weakness.
For Tesla, despite the slight Q2 decline, it was still a nearly 12% gain over the first quarter. If you consider Tesla's wholesale deliveries in China (which includes exports), that figure was up nearly 33% compared to the prior year.
Image source: Tesla.
Here's just one example of how competitive China's automotive market is right now. Competitors in China have been forced to churn out new vehicles and/or refreshes more rapidly to lure in consumers on factors other than price. Simply put, new vehicles sell faster and with fewer incentives, and in a price war, refreshing the lineup is important. Because of that push, Chinese automakers have released around 650 new models since January. That's staggering.
To be fair, that 650 figure includes facelifts, refreshes, and all-new models. If we narrow it down to only all-new models, which are vehicles that don't have a previous version in China, automakers are still pushing out 30 all-new models each month since January. In contrast, the U.S. does roughly 30 all-new models annually.
What it all means BYD's Executive Vice President, He Zhiqi, called the 650 figure "completely insane" on social media, before continuing to say that the Chinese auto market is "not just fierce, but brutal."
Tesla holding its own in China while some large domestic competitors such as BYD spiral, along with months of growing momentum in Europe, were exactly what Tesla needed during the second quarter. The question remains, however: Is this rebound sustainable?
There's a sound argument that the Iran conflict, which has affected oil prices in Europe, has given a boost to EV sales in the region, and it's uncertain how that trend will change in the near term. It's also fair to wonder if Tesla's thin and aging vehicle lineup can sustain this type of rebound through even the second half of 2026.
Either way, after two years of mostly bad delivery news, this might be the first Tesla delivery data that could inspire confidence -- and holding its own in China was more impressive than it's getting credit for.
Tesla (TSLA) shares sold off more than 13% in the first hours of Thursday's trading session on mixed earnings and a note that CapEx will tap $25 billion. Marley Kayden breaks down why investors are moving away from Tesla's stock as it trades as the worst performing name in the S&P 500 (SPX).
SummaryTesla, Inc. reported Q2 revenue growth but missed EPS, with operating margin collapsing to 1.4% and negative free cash flow.TSLA's ambitious projects—Optimus, Cybercab, and Megapod—are capital-intensive, with no clear path to profitability or detailed execution plans.FSD attach rates now exceed 55%, providing a competitive advantage, yet margin compression and rising capex overshadow these positives.I remain bearish on TSLA stock, as its valuation demands sustained execution while the company burns cash in a highly competitive, capital-intensive landscape.This idea was discussed in more depth with members of my private investing community, The Pragmatic Investor. Learn More » ankarb/iStock via Getty Images
Thesis Summary Tesla, Inc.'s (TSLA) beat revenues in Q2 but missed on EPS, and the stock is down over 4%, which I don’t find surprising.
Operating margin has collapsed to 1.4%, free cash flow was negative, and
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Tesla’s budding “Robotaxi” network drove fewer miles for paying customers in the second quarter than it did in the first, according to a chart the company released on Wednesday.
The quarter-over-quarter decline runs counter to Tesla’s rhetoric and actions in the past year. Tesla has staked much of its future on the idea of a massive, low-cost, cash-generating Robotaxi fleet — or going “balls to the wall for autonomy,” as CEO Elon Musk framed it in 2024. The quarterly step-down in Robotaxi miles also comes amid weakening profits in Tesla’s core businesses, which underperformed Wall Street’s expectations, according to figures released Wednesday. Tesla’s stock plunged more than 13% in early trading on Thursday.
At a passing glance, the chart appears to show steady growth in paid Robotaxi rides between August 2025 and June 2026. But the numbers displayed are cumulative, and when broken down by quarter, they show that Tesla’s Robotaxi fleet of Model Y SUVs carrying paying passengers covered around 1.1 million miles in the first quarter. That fell to roughly 700,000 miles in the second quarter, a decline of about 36%.
That’s despite the fact that the company has expanded its nascent operation to six cities across Texas and Florida, with a mix of unsupervised and supervised vehicles.
Image Credits:Tesla It’s likely Tesla is counting the paid miles driven in the San Francisco Bay Area, too, even though these branded Robotaxis don’t have the state-required permits to operate autonomously and also have a safety driver behind the wheel. Tesla has referred to that operation as part of its “Robotaxi coverage.”
The decline in miles driven also comes as Tesla made a striking admission on a conference call Wednesday about its second-quarter results. In response to a question about how slowly Tesla is scaling the Robotaxi service, Musk said the company needs to “accumulate driving data that is specific to the Cybercab” — the company’s gold, purpose-built, two-seater sedan that is expected to make up the bulk of its autonomous vehicle fleet — “before we can put a lot of them on the road.”
“Unlike, say, Model 3, Model Y, and our other vehicles where we’ve got a lot of vehicles on the road, millions of vehicles on the road, we don’t have that for Cybercab. So we actually have to accumulate miles with Cybercabs that are retrofitted with steering wheels and acceleration and braking pedals, that kind of thing, to calibrate to the Cybercab chassis,” he said. “As we are confident about that, the number of Cybercabs in cities will increase dramatically.”
This represents something of a break from claims the company has made for years about how its fleet of nearly 10 million customer cars has been silently collecting data in the background to train future robotaxis (in addition to training the driver assistance software for consumers, which Tesla calls Full Self-Driving).
On the call, Tesla executives framed the slow progress as a matter of being cautious about safety.
“Our goals are very ambitious for Robotaxi, but we do need to be cautious about causing any accidents or causing any harm to anyone,” Musk said.
He then said he doesn’t want Tesla Robotaxis causing accidents because he thinks bad media coverage could lead to a regulatory crackdown.
“Although there are, I think, 30 to 40,000 automotive deaths per year in the United States alone, most of those do not generate any press, you don’t really read about almost any of those. But if we injure even one person, it will be worldwide headline news, and regulators will immediately clamp down on our activities,” he said.
Ashok Elluswamy, Tesla’s VP of AI, boasted that Tesla’s Robotaxis have had “zero notable incidents” while driving “more than 380,000 miles” without a safety operator onboard. He did not define what the company considers “notable incidents,” though he claimed that “any reports have been of other actors impacting us when we were stationary.”
Tesla has reported 22 crashes to the National Highway Safety Administration in the year since it started trialing its Robotaxi service. While most of them involve other cars crashing into Tesla’s Robotaxis, the company has reported three crashes caused by its teleoperators moving the vehicles remotely, and multiple instances of the cars hitting objects at low speeds including curbs, utility poles, and a tow truck’s bed.
This represents another narrative change for the company. Tesla spent years claiming that the largest hurdle to full-scale Robotaxi deployment was regulatory in nature — though the company never really specified what those prohibitive regulations were.
Now the company says proving safety is all that’s holding Robotaxis back. And although it is still in the very early stages, Tesla still chose this moment to take a victory lap about its decision to build an autonomy stack that doesn’t use radar or lidar sensors, like industry leader Waymo.
“Historically, the so-called experts have always claimed that you need lidars, radars, HD maps, and the entire kitchen sink to drive safely. Here, we show that such is not true. You can have safe, comfortable, and affordable autonomy with just cameras,” Elluswamy said.
Both Musk and Elluswamy also promised growth is coming. They noted that the number of unsupervised miles traveled has grown roughly 10% every week since Tesla started offering them at the end of last year.
“We’ll continue to scale, I think, very, very rapidly,” Musk said.
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The upcoming report from Coca-Cola (KO - Free Report) is expected to reveal quarterly earnings of $0.92 per share, indicating an increase of 5.8% compared to the year-ago period. Analysts forecast revenues of $13.05 billion, representing an increase of 4.1% year over year.
The consensus EPS estimate for the quarter has undergone a downward revision of 0.2% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.
Given this perspective, it's time to examine the average forecasts of specific Coca-Cola metrics that are routinely monitored and predicted by Wall Street analysts.
According to the collective judgment of analysts, 'Net Operating Revenues- North America' should come in at $5.21 billion. The estimate suggests a change of +3.6% year over year.
Analysts' assessment points toward 'Net Operating Revenues- Latin America' reaching $1.73 billion. The estimate indicates a change of +8.9% from the prior-year quarter.
The average prediction of analysts places 'Net Operating Revenues- Asia Pacific' at $1.55 billion. The estimate indicates a change of -1.1% from the prior-year quarter.
The consensus estimate for 'Net Operating Revenues- Bottling investments' stands at $1.49 billion. The estimate indicates a year-over-year change of +5.8%.
It is projected by analysts that the 'Net Operating Revenues- Europe, Middle East & Africa' will reach $3.31 billion. The estimate points to a change of +4.3% from the year-ago quarter.
The collective assessment of analysts points to an estimated 'Net Operating Revenues- Corporate' of $37.32 million. The estimate points to a change of -4.3% from the year-ago quarter.
Analysts predict that the 'Operating Income- Europe, Middle East & Africa- Non-GAAP' will reach $1.41 billion. Compared to the current estimate, the company reported $1.36 billion in the same quarter of the previous year.
The consensus among analysts is that 'Operating Income- Bottling Investments- Non-GAAP' will reach $88.56 million. Compared to the present estimate, the company reported $60.00 million in the same quarter last year.
Analysts forecast 'Operating income- North America- Non-GAAP' to reach $1.64 billion. Compared to the current estimate, the company reported $1.58 billion in the same quarter of the previous year.
The combined assessment of analysts suggests that 'Operating Income- Asia Pacific- Non-GAAP' will likely reach $652.45 million. The estimate is in contrast to the year-ago figure of $664.00 million.
Analysts expect 'Operating Income- Latin America- Non-GAAP' to come in at $1.07 billion. Compared to the present estimate, the company reported $1.01 billion in the same quarter last year.
View all Key Company Metrics for Coca-Cola here>>>
Shares of Coca-Cola have experienced a change of +2% in the past month compared to the +0.4% move of the Zacks S&P 500 composite. With a Zacks Rank #3 (Hold), KO is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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Uber is laying off 10% of its community operations team, citing AI. Bloomberg/Getty Images Uber is cutting customer service roles — and it says artificial intelligence is the reason.
The ride-hailing company is laying off about 10% of its community operations team and asking remote employees to relocate to a city with an Uber office and work there three days a week, it said in a statement on Thursday. Bloomberg earlier reported the news.
AI presents "a massive opportunity for us to accelerate output, improve quality, and scale customer solutions at pace," Megha Yethadka, Uber's vice president of global community operations, wrote in a memo to the team on Wednesday.
"We've made some strides, but to unlock this potential, we need an effective organization to layer AI on," Yethadka wrote. "We cannot scale frontier technology on top of fragmented processes."
An Uber spokesperson said the company informed the team on Wednesday about the "structural changes we are making to simplify operations, strengthen in-person collaboration, and continue to embrace AI."
The layoffs add Uber to the list of companies that have cut jobs in the name of AI. Others this year include Block, IBM, and Snap.
Last month, Uber laid off a quarter of its human resources and recruitment staff. The cuts affected less than 1% of the company's 34,000-person global workforce and weren't connected to AI, Uber said at the time.
CEO Dara Khosrowshahi has said that Uber is slowing down hiring as it invests more in AI.
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Alex Bitter You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Alex Bitter is a senior retail reporter covering the gig economy, food, and retail. His work focuses major gig delivery and ride-hailing apps, including Uber, Lyft, DoorDash, Instacart, and Walmart's Spark. He is interested in everything from what it's like to work on the apps to the companies' business strategies.Some of his recent stories feature gig workers who have been deactivated on the apps, DoorDash hiring traditional employees to make deliveries, gig workers' use of bots, and gig work expanding into new professions, such as nursing.Alex has also written about Aldi's US expansion, Starbucks' turnaround efforts, and the fallout from Kraft-Heinz's budget cutting. Convenience store chain Sheetz ended its "smile policy" after his reporting.Before joining Insider in September 2020, he wrote about consumer and retail companies for S&P Global Market Intelligence. He's a graduate of the University of Hawai'i at Mānoa and grew up on the Big Island.Alex lives in the Washington, DC, area, where you can find him studying ancient coins or searching for Civil War artifacts with his metal detector in his free time.Got a tip? Reach out at [email protected] or via encrypted messaging app Signal at +1 (808) 854-4501.
Uber ride-hailing Layoffs More Artificial Intelligence AI Artifical Intelligence Careers
CNBC’s MacKenzie Sigalos framed the tension bluntly, noting that “Alphabet shares are now in correction territory down 13% from their May all-time highs. Investors questioned the returns on its enormous AI build-out.” The math behind that skepticism is the story. Alphabet (NASDAQ: GOOGL | GOOGL Price Prediction) is spending at a pace that would have looked implausible a year ago, and the market is asking whether returns can keep up.
The Capex Curve Is Bending Upward Sigalos flagged the pace: “Alphabet is already on pace to spend nearly $200 billion this year, with Q2 capex expected to double from a year ago. Bank of America sees spending approaching $300 billion in 2027.” Alphabet’s numbers back that up. Q2 capex hit $44.924 billion, up 100.14% year over year, following $35.67 billion in Q1. Full-year 2026 guidance sits in the $175 billion to $185 billion range, roughly double FY2025’s $91.45 billion.
Sigalos added the uncomfortable wrinkle on efficiency: “As rising component costs absorb more of that increase, each additional dollar buys less capacity.” That is the argument reshaping how the Street looks at hyperscaler ROI. Nominal capex is climbing faster than the compute it actually buys.
Funding the Build The financing side is where the correction gets its teeth. Sigalos noted, “Alphabet has raised more than $140 billion in debt and equity since October. With some analysts now modeling free cash flow to turn negative next year.” Alphabet has already crossed that line. Q2 free cash flow came in at -$5.9 billion, and long-term debt nearly doubled from $46.5 billion to $98.2 billion.
The company raised roughly $70 billion in combined equity and debt in Q2 alone, established an at-the-market program for up to $40 billion of Class A and Class C stock, and suspended its share repurchase program. Interest expense rose nearly 5× year over year. That combination—suspending buybacks, issuing dilutive equity, and taking on sharply higher interest expense—represents a structural change from the Alphabet investors owned two years ago. Details are available in the company’s Q2 2026 SEC filing.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Google didn't make the cut. Grab the names FREE today.
What the Cash Is Buying The bull case rests on whether the spend converts to durable revenue. Q2 gave Sundar Pichai plenty to work with. Google Cloud revenue reached $24.77 billion, up 82% year over year. Total revenue climbed to $119.8 billion, up 24.23%, the 12th consecutive quarter of double-digit growth. Operating income rose 30.38% to $40.77 billion with a 34% operating margin.
Pichai told investors, “Q2 was an amazing quarter, with Alphabet revenues growing 24% year-over-year and Google Cloud revenues accelerating to 82% growth, driven by demand for AI infrastructure and AI solutions. It’s great to see wide adoption of Gemini Enterprise, with nearly 90% of the Fortune 100 using it.” Gemini models are processing 22 billion API tokens per minute, up from 7 billion in Q3 2025, and the Gemini App reached 950 million monthly active users.
Sigalos added: “Alphabet still has advantages that few others can match. One of tech’s strongest balance sheets, stakes in both space and Anthropic, and a highly profitable search franchise that continues to fund the build-out with no clear signs of AI cannibalization.” Search & other revenue rose 17% to $63.27 billion, evidence that the legacy cash engine is still expanding while the capex bill compounds.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Google didn't make the cut. Grab the names FREE today.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOG, AMZN, MSFT, ORCL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
ToplineGoogle on Thursday introduced a new way to sign in or recover locked Google Accounts, putting biometric identity verification directly in the hands of its users by allowing them to record directed via selfie videos and submit them in lieu of a traditional password or security question.
Sign with logos for Google and YouTube.
Getty Images
Key FactsGoogle’s new selfie video sign-in feature lets users record a short clip of themselves with head movement guidelines to verify their identity and, next time they need access to their account, they can take another selfie to get back in.
The new software compares the new selfie to the original video—requiring users to perform simple movements to prove it's a live video—to confirm the user’s identity.
The recorded video is stored in encrypted form with the option to delete it at any time, Google says, promising advanced checks are built in to block deepfake videos and impersonation attempts.
Key backgroundThe feature arrives amid a broader account-security push from Google that has so far included fake-call detection against AI scams in June and the suing of a Chinese cybercrime operation that used AI to defraud hundreds of thousands of victims, according to TechCrunch. It’s also a major expansion of biometric account recovery, which has been a contested space: Apple has offered Face ID-based authentication since 2017, while Microsoft expanded Windows Hello facial recognition to account recovery workflows years ago. While it can be used as a regular sign-in, Google is largely positioning the selfie as a backup option specifically for lockout scenarios—the gap where users lose their phone or can't access their usual device.
TANGENTThe timing of the new feature is notable: Google’s parent company Alphabet just reported second-quarter Google Cloud revenue of $24.77 billion, up 82% year-over-year, with CEO Sundar Pichai noting that nearly 90% of the Fortune 100 now use Gemini Enterprise, Google’s AI suites for businesses. The company on Wednesday said its Gemini app now has 950 million monthly active users.
further readingForbes950 Million People Now Use Gemini Each Month As Alphabet Posts Earnings BeatBy Ty Roush
ForbesAlphabet Rally Boosts Google Cofounder Fortunes By $15 Billion—Here’s Why Shares Are UpBy Ty Roush
SummaryAlphabet Inc. reported a massive EPS beat driven by mark-to-market gains, not core business growth.Q2 net income surged 298%, primarily from $99B in "other income" tied to SpaceX and Anthropic valuation gains.Core operations grew 30% YoY, but true cloud growth is obscured by related-party deals and artificial valuation uplifts.I find GOOGL stock uninvestable due to opaque financial engineering and heightened risk of a sharp correction in hyperscaler stocks. Getty Images
Introduction The whole market is focused on Alphabet Inc.'s (GOOG, GOOGL) Q2 earnings, with the enormous beat on profitability, which exceeded analysts' expectations threefold. EPS came in at $9.11, while the predictions were south of $3, giving this company
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Google's cloud chief Thomas Kurian said the company's existing customers are shelling out "roughly 50% more" than they've already committed to spend on its products, which helped drive its red-hot cloud growth during the second quarter.
"Our existing customers have increased their spend when they make a commitment to us," Kurian told CNBC's Jim Cramer on Thursday. "They're spending roughly 50% more than the commitment, and so it comes down to the differentiation in our product portfolio, the strength we have in our go-to-market execution, and you see that in both top line and operating income growth."
Kurian's comments come after Google parent Alphabet posted better-than-expected revenue for the second quarter on Wednesday, helped by growth of 82% year-on-year in its cloud business.
Demand for its cloud services is strong enough that the company plans to call on third-party providers to fill in extra capacity. That drove shares of neocloud providers CoreWeave and Nebius higher.
Read more CNBC tech newsMoonshot AI accessed Nvidia's chips despite Chinese export ban, White House official saysAlphabet and Tesla test Wall Street's patience as AI spending overshadows growthAlphabet earnings takeaways: Q2 revenue beats, GOOGL stock sinks on 2026 capex hikeTesla misses on earnings, as free cash flow turns negative and margins slideKurian said the move is necessary, even though it will hurt margins, because it allows Google to capture that demand and those customers tend to spend more on its other services.
"So for us, when we look at the short term, we're going to rent some capacity for you know a few quarters," Kurian said. "It allows us to bring customers in, bridge them over to when we have sufficient capacity available, and then that will compound over time, and the return on investment makes sense for us."
Alphabet shares plunged more than 7% on Thursday after the company boosted its capital spending forecast to as much as $205 billion this year, worrying investors who are jittery about ballooning artificial intelligence budgets.
The company said it now expects to spend between $195 billion and $205 billion in 2026, up from the $180 billion to $190 billion forecast provided last quarter. Its capex reached $44.9 billion during the second quarter, with most of the spending going toward AI infrastructure.
Tech companies are burning through cash to bankroll spending on AI infrastructure, while trying to reassure Wall Street that those investments will yield returns.
Before Alphabet's second-quarter report, tech's megacaps were expected to spend roughly $725 billion this year on AI initiatives. That total will likely rise as more of Alphabet's peers post quarterly earnings in the coming days. Amazon, Microsoft and Meta will all report results next week.
Kurian defended the company's "very, very disciplined" capex spending and said companies are seeing real returns on utilizing Google's AI solutions.
"Macy's, for example, has found as they deployed our AI system, it's improved the size of the shopping basket that they see," he said. "We've seen Macquarie Bank save a lot of processing time by automating many of the workflows in their organization."
