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Netflix (NFLX -0.10%) has become one of the more interesting stocks in the market right now. Its shares have fallen sharply from their highs, leaving many investors wondering whether something has gone seriously wrong with the business.

But here's the surprising part: Netflix's business is still growing. In its latest quarter, Netflix generated $12.6 billion of revenue, up 13% year over year . So why has the stock fallen so much?

The answer is more complicated than a "weak" quarter.

Image source: Getty Images.

Netflix became a victim of its own success. For years, Netflix was one of the market's favorite growth stocks.

The company transformed entertainment, expanded globally, and built a streaming platform with hundreds of millions of members. Investors rewarded that success with a premium valuation because they expected Netflix to keep growing rapidly for years.

But Netflix is no longer the same company it was a decade ago. It already operates at an enormous scale -- more than 300 million subscribers. Adding another 100 million members becomes increasingly difficult when the company already serves a massive global audience.

That doesn't mean Netflix has stopped growing. Its Q2 results prove otherwise. The issue is that investors have started asking a different question: How much growth is realistically left?

That question matters because a stock price reflects expectations about the future, not just today's results. A company can grow its profits and still see its stock fall if investors decide those profits are worth a lower price.

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The business is healthy, but the bar is higher. Netflix's latest numbers make it difficult to argue that the underlying business is in trouble.

Revenue increased 13% year over year in Q2, while operating income increased 11%. More importantly, management expects operating income to grow by more than 20% in 2026, with the operating margin reaching 31.5%, up from 29.5% in 2025.

Engagement also remains healthy. Netflix said members watched more than 97 billion hours during the first half of 2026, up 2% from the same period last year, despite competition from major events such as the Winter Olympics and the World Cup.

That is hardly a broken business. But investors now expect Netflix to do more than simply grow.

The company needs to show that it can continue raising prices without hurting engagement, expand margins, and create new revenue streams from its enormous audience.

That brings us to advertising.

Advertising could determine what happens next. Netflix's advertising business has become increasingly important to the investment story.

Management expects advertising revenue to roughly double in 2026 to about $3 billion. That would still represent only a small portion of Netflix's overall revenue, but the opportunity is set to grow much larger over time.

The company is expanding its advertising technology, improving targeting and measurement, and opening more of its inventory to programmatic buyers. If Netflix succeeds, advertising could give the company a powerful new way to monetize its existing audience.

That matters because Netflix no longer needs to rely entirely on adding subscribers. It can raise prices. It can increase advertising revenue. It can improve margins. The more money Netflix earns per member, the less explosive subscriber growth it needs to generate strong earnings growth.

What does it mean for investors? Netflix stock has fallen sharply, trading down about 38% from its 52-week high, but investors should be careful not to confuse a falling stock price with a deteriorating business.

The latest numbers tell a different story. Netflix is still growing. Profitability remains strong. Engagement is healthy. Advertising is gaining momentum.

The real issue is a change in investors' expectations. Investors once paid a premium for Netflix because they believed exceptional growth would continue for years. Today, they are demanding more proof that Netflix can maintain strong growth at its enormous scale.

That makes the next phase particularly important. If Netflix can sustain double-digit revenue growth, expand margins, and turn advertising into a meaningful profit engine, the recent sell-off could eventually look more like a valuation reset than a fundamental breakdown.

But if growth slows materially and advertising fails to meet expectations, the market's caution may prove justified.

All that said, investors should pay attention to execution in the coming quarters.

3 Best Stocks to Buy That You’ve Probably Never Heard OfProgyny NASDAQ: PGNY CEO Pete Anevski said the company expects member engagement and utilization to rebound following a more pronounced summer seasonal slowdown, while early renewal and new-client commitments have increased management’s confidence in its outlook for the remainder of the year.

Speaking at the 46th Annual Canaccord Genuity Growth Conference, Anevski said Progyny has visibility into scheduled appointments for approximately the next six weeks and uses models to forecast utilization beyond that period. He said the company typically experiences seasonality in the second half of July and August, as some members delay fertility treatment because of summer travel, weddings and other personal plans.

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This year’s slowdown has been sharper than in recent years and more comparable to 2022, he said. However, Anevski said September appointment visibility indicates engagement and utilization returning to levels seen during the first half of the year.

“We wouldn’t put out guidance and expectations if we weren’t” comfortable with the outlook, Anevski said, adding that the early September activity is consistent with first-half trends.

Renewal commitments arrive earlier
Anevski said Progyny has received enough renewal commitments to “essentially de-risk” its renewal rates for next year earlier than it normally would in a sales cycle. About one-third of the company’s clients come up for renewal annually, generally under three-year contracts, he said.

Some employer clients renew directly, while others conduct requests for proposals or market checks. Anevski attributed the earlier decisions in part to broader medical-cost pressures facing employers. He said clients have not identified issues with Progyny’s reporting, member experience or performance.

Progyny also is seeing stronger early new-business commitments than it did at the same point last year, both in covered lives and expected contribution from those lives, according to Anevski. The company’s annual sales target is generally at least 1 million lives, and he said management expects to reach that goal based on current activity and the remaining pipeline.

While it is too early to quantify expansion activity at renewing clients, Anevski said Progyny historically sees roughly 20% to 30% of clients add something to their benefits. Potential additions include egg freezing, additional fertility treatment cycles, adoption and surrogacy coverage, global coverage, and ancillary postpartum maternity and menopause offerings.

He added that the company has received no indications that clients plan to reduce benefits.

More competitive replacement opportunities
The mix of early new-business commitments has included a higher proportion of “brownfield” opportunities than greenfield opportunities, Anevski said. He defined brownfield opportunities as employers that already offer fertility coverage through a health plan or another specialized provider.

According to Anevski, employers facing elevated medical-cost inflation are examining programs where they already spend money and seeking ways to improve efficiency. He said Progyny’s average cost per utilizer has risen relatively modestly over time compared with broader medical-cost inflation, which he characterized as running in the high-single-digit to low-double-digit range and expected to remain elevated next year.

Anevski also said the company’s client base has broadened substantially since its early years. Progyny began with five clients across two industries, including four technology clients, and has expanded into more than 45 industries, he said. The company generally sells into at least two-thirds of the industries it serves in a given year, although the specific industries vary.

He said adoption by major employers can encourage other companies within an industry to add the benefit as they compete for talent. Anevski cited the average age of women undergoing in vitro fertilization as 36, with much of Progyny’s utilization occurring among people ages 32 to 40. He said infertility affects one in five people in the U.S.

ROI, health-plan partnerships and cost management
Anevski distinguished Progyny’s offerings from traditional wellness programs, arguing that the company provides employers with hard-dollar savings calculations and detailed quarterly reporting. He said transparency around program costs, member outcomes and savings has supported Progyny’s 99% retention rate for 10 consecutive years.

He said health plans historically have not focused heavily on fertility-benefit management because their administrative-services business model does not necessarily produce more revenue from offering the coverage. In contrast, Progyny operates a proprietary provider network, offers care advocates and tracks outcomes, Anevski said.

The company has partnered with health plans, including Cigna, which began an expanded partnership effective in September of the prior year. Anevski said the current cycle is the first full sales season for that relationship and that Progyny is holding discussions with additional health plans regarding similar partnerships.

On medical-cost trends, Anevski said Progyny’s scale and network relationships have helped it contain provider rates, which he described as flat to down over time depending on the clinic. He also said the company’s improving outcomes contribute to savings for clients.

Expanded products and small-employer market
Progyny has approximately 7 million covered lives, with roughly 2.7 million having access to one or more expanded products, Anevski said. Those offerings include postpartum maternity and menopause programs, as well as Progyny Select.

Progyny Select is designed for employers with as few as 100 employees that typically purchase benefits on a fully insured, premium-based model. The product provides more predictable costs for smaller employers while placing them in a broader risk pool, Anevski said.

He said the company is working with channel partners, general agents and professional employer organizations to expand distribution of Progyny Select through broker networks. The offering increased Progyny’s estimated total addressable market by 50 million lives, to 155 million lives from 105 million previously, according to Anevski.

About Progyny (NASDAQ:PGNY)Progyny, Inc is a New York-based fertility benefits management company that partners with employers and health plans to design and administer comprehensive family-building programs. The company's digital health platform integrates clinical expertise, patient support tools and data analytics to help members navigate fertility treatments, from in vitro fertilization (IVF) and egg freezing to surrogacy and adoption. By focusing on outcomes-based care, Progyny aims to improve success rates while controlling costs for its clients.

The core of Progyny's offering is its proprietary Smart Cycle® benefit, which bundles clinical, emotional and logistical support into a single package.

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

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Meta said it would remove harassing videos filmed with its AI glasses, but its content moderation so far has been uneven, with dozens of videos remaining on its Instagram platform.

Meta; Getty Images; Alyssa Powell/BI

"Are you a secret code?" a young man in Meta glasses asks a woman in a tank top on the sidewalk. "What do you mean, 'a secret code?'" she responds, seemingly confused as the man's glasses record her. "Because I'm trying to crack you," he says.

The interaction, filmed by content creator Colin Allen for his Instagram account @thatiscolin, is one of dozens of similar videos that I found from popular and verified accounts on the platform in the month after Instagram boss Adam Mosseri said Meta would remove "harassing" pickup line videos filmed with Meta glasses.

After I sent Meta a link to 20-plus pickup and other harassing "prank" videos from different accounts, the company removed the "secret code" video and eight others. Allen, who describes himself as a "lifestyle and comedy creator" and not a pickup artist, had used the same line to different women in several other videos, which remain up. He didn't respond to my attempts to contact him.

An Instagram account that does some pickup line content, including asking women on the sidewalk, "Are you a secret code? Because I'm trying to crack you." 

Instagram / @thatiscolin

Videos from pickup artists using Meta glasses to approach women in public have emerged as a genre on Instagram's Reels and TikTok, with some of the popular videos racking up millions of views. These videos of men trying pickup lines on women on the street, along with pranks on cashiers or service workers, are tagged on Instagram as being shot on "Meta glasses."

Being associated with that kind of icky content can't be good for the reputation of the devices, which some people are already referring to as "creep glasses."

Tracy Clayton, a spokesperson for Meta, told me that thousands of pieces of content have already been removed, and several large accounts have been taken down. The recent enforcement action falls under Meta's existing Community Standards on bullying and harassment, which broadly forbid content that sexualizes other adults or sexually harasses people. Additionally, search terms for "rizz" or "cold approach," common pickup slang, are now blocked in search.

Meta's Instagram blocks the search terms for pickup artist content like "rizz" and "cold approach" (meaning to approach a stranger). 

Instagram / screenshot

My last month spent in pickup-line video land has shown me that Meta's enforcement has been uneven in the weeks since Mosseri's remarks. "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," Mosseri said in mid-July.

When initially reporting on Mosseri's comments, I found two large pickup artist accounts that had been deactivated as part of the recent enforcement wave. A few days after my article was published last month, one of those accounts was reactivated (a Meta spokesperson said this was by error, and the account was re-banned after I brought it to their attention).

Carolina Are, a digital criminologist based at the London School of Economics and Political Science, said that Meta and Mosseri's response to the harassing AI glasses videos highlights isn't enough.

"There is a backlash, and then Meta tends to minimize its own responsibility for it. They talk about how this is user-generated behavior or an error in enforcement," Are said. "But they don't recognize the systemic issues that are causing that to happen, and they take no accountability for what their policies or infrastructure have done to enable that behavior," Are said.

These pickup and prank videos made with Meta glasses aren't exclusive to Instagram; they also exist on YouTube and TikTok.

A spokesperson for TikTok told me that it has policies against harassing content. After I sent a list of four videos of pickup artists who also posted on Instagram, TikTok took down two of them, citing its policy on bullying and sexual harassment.

Boot Bullwinkle, a representative for YouTube, told me it has policies against certain kinds of harassment and dangerous prank videos. YouTube has been dealing with moderation issues around street pranks and pickup artists for years. After I sent four examples of channels that posted Meta glasses pickup content, YouTube said it took down "several" of the videos and removed one of the channels from its monetization program.

A headache of its own making

A pair of Meta's Ray-Ban AI glasses. Mark Zuckerberg said sales of Meta's AI glasses tripled last year and he believes they are "some of the fastest growing consumer electronics in history." 

Bloomberg/Getty Images

Mosseri personally delivering the message that Instagram will take down this specific kind of content is unique among video platforms. That may be because of Instagram's unique relationship with the Meta glasses: Not only are these unsavory videos a headache of its own making, but they also risk harming the public perception of a product that Meta invested big bucks in building and marketing.

Plenty of people are buying up Meta's AI glasses. Sales have grown since their launch in 2021, topping 7 million units in 2025, more than triple the previous year. Meta is the early leader in the smart glasses race.

They've been a bright spot for Meta's money-losing Reality Labs department, which faced layoffs this year. They're also key to CEO Mark Zuckerberg's AI bet.

"I think in the future, if you don't have glasses that have AI or some way to interact with AI, I think you're kind of similarly, probably [going to] be at a pretty significant cognitive disadvantage compared to other people and who you're working with, or competing against," Zuckerberg said in a 2025 earnings call.

The recent backlash — remember when Kylie Jenner's Instagram comments were flooded with people calling her signature Meta glasses "pervert glasses"? — presents a thorn in Meta's side.

"In many cases, the public-facing rules that users see are vague enough to be open to the discretion of the platform to make those kinds of shifts and changes at any time," said Sarah T. Roberts, faculty director and cofounder of the UCLA Center for Critical Internet Inquiry.

Meta is betting AI could supercharge its moderation efforts. Zuckerberg and other execs have long said the old way of doing things, leaning heavily on third-party human contractors, doesn't scale. The theory goes that AI can be trained to autonomously flag violating content. In June, Meta told the Financial Times that initial tests showed that its AI systems made fewer mistakes than human moderators and flagged more violating content. The jury's still out on whether that will prove to be the case long term.

Deactivated one day, reactivated the nextAfter seeking out and interacting with some of these pickup line videos in Reels, I started getting served more and more of them. I no longer needed search terms to find them; my Reels feed was filled nearly entirely with that genre of content.

One creator whose account was active weeks after Mosseri's remarks is Caren Babaknia. He has 174,000 followers and posts videos of himself driving up to women he identifies in the caption as escorts and talking to them while wearing Meta glasses.

An account that posted multiple videos of paying women that appear to be sex workers to watch a video of memes and gambling ads on his laptop. 

Instagram / @carenview

In one video captioned "Wasting ESCORTS time by making them watch brainrot" he offers a woman who approached his car $50 in exchange for watching a video on his laptop of brainrot memes. The woman agrees, and he plays the video, which includes an ad for a gambling app. He hands her the cash.

I spoke with Babaknia on the phone to get his perspective on videos made with Meta glasses. He told me he believes the women in his videos are aware that he was filming them because his content is so viral that they knew him.

He voiced disdain for pickup artists with Meta glasses, however.

"I think the rizz content is very cringe," he told me. "I think those are normal girls and they don't deserve to be videoed without their consent."

After including one of Babaknia's videos in the list I recently sent to Meta, his account was deactivated the following morning. Babaknia told me that he was going to appeal. A day later, his account was back up with the videos restored.

It's not unusual for changes to enforcement in content moderation to take time to implement at scale. But as Meta glasses get increasingly popular, it seems likely that Instagram will face pressure to deal with this — and potentially new forms of bad behavior — more and more.

"It's not like they just started those platforms yesterday," said Roberts from UCLA. "It's not like they don't have 20 years now of understanding how people will behave at the most depraved levels if given a chance."

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Katie Notopoulos

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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.

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A while back, Morgan Stanley's well-respected automotive analyst Adam Jonas evaluated Tesla (TSLA +0.68%) using a sum-of-the-parts model between artificial intelligence (AI), software, energy, and robotics rather than considering it a traditional automaker. What's interesting is that Jonas believes autonomous driving technology and the robotaxi business drive 41% of Tesla's valuation compared to 34% from its core automotive and energy business and about 25% from Optimus robot potential. So, when robotaxi rival Waymo of Alphabet (GOOG -0.12%)(GOOGL -0.13%) points out why Tesla's driverless technology strategy could have serious drawbacks, investors should take note.

What's going on? Recently, Alphabet's Waymo co-chief executive officer, Dmitri Dolgov, seemingly took a shot at Tesla when speaking at Y Combinator's Startup School, though he didn't name the automnaker specifically. Dolgov essentially argued that camera-only self-driving technology could be considered "weak sensing" and that the strategy would develop quickly initially before hitting a lower ceiling of capability and performance long term.

Image source: Y Combinator / Waymo co-CEO Dmitri Dolgov at Startup School 2026.

For years, the common argument for a camera-only system was that it's cheaper and that humans rely solely on vision when driving. Therefore, a camera-only system could work adequately for driverless vehicles. Dolgov essentially agreed that a camera-only system could match human performance, but that to build a driverless technology that's safer than humans, which is the entire goal, there needs to be more sensors.

Although Tesla has opted for a camera-only driverless system strategy, which enables the automaker to lower costs, Waymo opts to use three sensor types: cameras, LiDAR, and radar. "These different sensing modalities, they're not backups to each other," Dolgov said during the presentation. The data fuses into a single view of the world that he noted is "vastly superior to what you get with any one sensor."

It's true that using three sensors is better than one unless you believe all three are redundant. In my opinion, they aren't. Consider this simple scenario: A snow storm could cause a whiteout for camera-only systems, which would see next to nothing, while LiDAR in the same scenario would have no problem detecting a human or obstacle on the roadside. Even a fluke event such as mud covering the camera lens could completely shut down the driverless vehicle, whereas a Waymo vehicle with LiDAR and radar could safely navigate back to its home base to clean the camera.

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Falling behind? For Tesla investors, the criticism about camera-only systems should be concerning because there is truth to it. It's a potential speed bump for Tesla especially when you consider there are other issues with Tesla's driverless technology and robotaxi strategy, such as Tesla being on the hook to replace the self-driving computer in roughly 4 million vehicles, or figure out a way to compensate owners fairly after admitting Hardware 3 isn't powerful enough to deliver the unsupervised self-driving as advertised.

Image source: Tesla.

Another issue for Tesla investors to chew on is that the automaker has yet to deliver much transparency or a timeline for its Cybercab approval process. The vehicle needs approvals to begin charging for rides. Amazon-owned Zoox recently received approval by the National Highway Traffic Safety Administration (NHTSA) to commercially deploy its purpose-built, steering-wheel-free robotaxis, enabling it to officially charge for rides, which it plans to do shortly in Las Vegas.

What it all means Simply put, investors need to be aware of not only Tesla's camera-only capability for its driverless system but the steps it needs to take for the approval process so that its robotaxi business can truly start expanding. Waymo, among other rivals, has already established a lead in the business compared to Tesla. Considering the latter's valuation is largely believed to be from its robotaxi potential, Tesla needs to play catch up fast.

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Artificial intelligence workloads are pulling forward a decade of electricity demand growth, and nuclear power is emerging as the always-on backbone hyperscalers actually want to buy. The Department of Energy projects data centers will account for up to 12% of U.S. electrical demand by 2028, and Constellation’s own CEO has told investors that "projected spending levels for 2026 are nearly 75% higher than last year and continue to be revised upward" from hyperscaler customers. That is the setup heading into August.

Here are three US-listed operators with the reactor fleets, gas backup, and signed hyperscaler contracts to monetize that surge. Each pick is thesis-driven, not a trade instruction. Read them as research candidates for anyone building a nuclear-plus-AI power basket.

Constellation Energy (CEG): The Purest Nuclear-AI Play
Constellation Energy (NASDAQ:CEG | CEG Price Prediction) runs the largest US nuclear fleet and is the clearest listed vehicle for pricing hyperscaler power appetite. Shares closed at $282.50 on August 14, giving the stock a market cap of roughly $98.7 billion and a forward P/E near 23. The stock has climbed 9.45% over the past month, even as it sits -19.8% year to date after a huge 2025 run.

The bull case tightened on the Q2 report. Constellation posted adjusted EPS of $2.55 versus a $2.33 estimate and raised FY2026 adjusted EPS guidance to $11.50 to $12.50. The nuclear fleet delivered 44,160 GWh at a 93% capacity factor in Q2. More important for the AI thesis: management signed 920 MW of long-term nuclear PPAs (15 to 20 years) with investment-grade customers beginning 2029 to 2032, and the Crane Clean Energy Center restart is targeting 2027. Wall Street is aligned, with 20 buy or strong buy ratings against 3 holds and an average target of $349.96.

Risk to watch: The Q2 refueling schedule ran 86 outage days versus 41 the prior year, dropping operating income -39% YoY. Illinois’ ZEC program also ends May 2027, and PJM’s capacity market framework is still being finalized.

Vistra (VST): The NVIDIA-Backed Diversified Operator
Vistra (NYSE:VST) closed at $148.13 on August 14, up 5.36% over the past week after the Q2 report and Helix announcement. Forward P/E sits at just 16, and analyst sentiment is unusually one-sided with 19 buy or strong buy ratings and zero holds. The average price target is $221.74.

The headline catalyst is the Helix Digital Infrastructure JV with NVIDIA, KKR, and Kuwait Investment Authority, which designates Vistra as preferred power provider with an initial commitment of up to $1.0 billion. CEO Jim Burke framed the structure as a "rack-to-grid, one-stop-shop solution" for data center customers. Add Meta PPAs signed at the Comanche Peak twin-unit nuclear plant, FERC approval for the pending 5,500 MW Cogentrix gas acquisition, and Q2 Ongoing Ops Adjusted EBITDA of $1.77 billion (+30%+ YoY), and you get a nuclear-plus-gas fleet that hit 97%+ commercial availability during extreme heat. The company is hedged ~100% for 2026 and ~94% for 2027, locking in economics while the AI load ramp arrives.

Risk to watch: Q2 GAAP net income fell -6.73% YoY, hit by $472 million in unrealized MTM hedge losses. That volatility can distort headline earnings even when cash economics improve, and ERCOT forward curves are running meaningfully lower for 2027.

NextEra Energy (NEE): The Diversified Compounder With a Nuclear Restart
NextEra Energy (NYSE:NEE) is the largest name in the group at $179.4 billion market cap, and the only one delivering a real dividend yield alongside the AI story. Shares closed at $86.19 on August 14, up 8.86% year to date and 22.75% over the past year. The dividend yield is 2.77% with committed growth of ~10% annually through 2026, then 6% through 2028.

Q2 delivered adjusted EPS of $1.15 versus $1.10 estimate, the fifth straight beat. The AI pipeline is enormous: FPL has ~21 GW of large-load interest, with 12 GW in advanced discussions. CEO John Ketchum told investors that "every gigawatt of large load under FPL’s approved tariff [is] equivalent to roughly $2 billion of capex". The Duane Arnold nuclear restart is on track for no later than Q1 2029, and the proposed Dominion Energy merger is targeted to close in H2 2027. Management is guiding to 8%+ adjusted EPS CAGR through 2032, then 9%+ through 2035 assuming the Dominion combination closes.

Risk to watch: The Dominion merger has to clear Virginia, North Carolina, South Carolina, FERC, and NRC. Q2 revenue of $7.53 billion missed the $8.15 billion consensus, a reminder that top-line lumpiness happens even when adjusted EPS beats.

The Setup Into September
Each name plays the same theme differently. Constellation is the pure-fleet nuclear operator with hyperscaler PPAs already inked. Vistra pairs baseload nuclear with the fastest-growing gas platform and now has NVIDIA on its cap table via Helix. NextEra brings the biggest customer pipeline, a regulated Florida engine, and an active nuclear restart. Watch PJM’s capacity framework, the ERCOT queue thinning under Governor Abbott, and NextEra’s promised year-end large-load contract announcement. Those three catalysts will tell you whether the August rally in the group has more room to run.

Contact [email protected] for any questions or corrections.

Memory is a critical part of the artificial intelligence (AI) hardware stack in data centers, computers, smartphones, and even cars. It keeps data constantly flowing to processing chips during AI model training and inference workloads, preventing bottlenecks. Without sufficient memory capacity, users of AI chatbots, AI agents, and even self-driving cars would have a very laggy experience.

In April, Roundhill Investments launched an exchange-traded fund (ETF) that exclusively invests in memory stocks called the Roundhill Memory ETF (DRAM +0.69%). It has already delivered an 80% return in just four months.

The ETF has more than one-quarter of its assets allocated to America's top memory company, Micron Technology (MU +2.30%), which has been a key driver of its returns. Should investors add this fund to their portfolio now, or have they missed the boat?

Image source: Getty Images.

Every leading memory stock is packed into one ETF Data center operators are currently buying high bandwidth memory (HBM) hand over fist to power their AI workloads. It's causing a global shortage across all memory types because suppliers are reducing manufacturing capacity in some segments to prioritize HBM.

This is creating a bonanza for companies like Micron and its main competitors, Samsung Electronics and SK Hynix, because the shortage allows them to dictate prices. As a result, all three are experiencing blistering increases in revenue and earnings. Shareholders are reaping the rewards, with Micron stock soaring by over 600% over the last 12 months alone.

MU data by YCharts

The Roundhill Memory ETF holds 24 stocks, but Micron, Samsung, and SK Hynix, its top three holdings, account for a whopping 70.9% of the portfolio's value.

Stock

Roundhill ETF Portfolio Weighting

Micron Technology

26.02%

Samsung Electronics

24.57%

SK Hynix

20.37%

Data source: Roundhill Investments. Portfolio weightings are accurate as of Aug. 10, 2026, and are subject to change.

Micron, Samsung, and SK Hynix are racing to produce as many of their new HBM4 data center chips as possible, which offer record capacity specifically for AI workloads. Micron's HBM4 delivers 60% higher performance than its previous HBM3 solution and is 20% more energy-efficient. This is an ideal combination for data center operators seeking the fastest processing speeds at the lowest cost.

The memory shortage is so severe right now that Nvidia is sourcing HBM4 from all three suppliers for its new Vera Rubin systems, which include its Rubin graphics processing units (GPUs), Vera central processing units (CPUs), and specialized networking equipment. These systems are now the gold standard for running AI workloads.

Outside of its top three positions, the Roundhill ETF also holds prominent memory and storage names like Seagate Technology Holdings, Western Digital, and Sandisk.

The Roundhill ETF is obliterating the market, but can it continue? The Roundhill Memory ETF only launched on April 2, so it doesn't have much of a track record for investors to consider. But as mentioned, it has already rocketed up by 80%, obliterating the broader market so far.

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However, the soaring cost of AI chips and infrastructure is making AI models and software increasingly expensive to deploy. Large companies like Uber Technologies, Walmart, AT&T, and even Amazon have reportedly placed AI usage restrictions on their employees to prevent cost blowouts.

In Uber's case, the decision came after it blew through its entire 2026 AI budget in four months, triggered by a passive price increase imposed by Anthropic for using its Claude Code programming assistant.

A recent survey by UBS Group found that 60% of businesses are routing tasks to more efficient AI models that use less computing power to keep their spending under control. That isn't great news for the semiconductor industry, as it could eventually lead to declining demand for GPUs, CPUs, and memory.

But none of this should be surprising, because the chip industry has always been cyclical. Data center operators used to invest in new infrastructure every few years, but that upgrade cycle has shortened as updated chips and components now hit the market annually. Any data center operator that doesn't buy the latest chips risks losing the race for AI supremacy.

However, the current spending rate won't be sustainable forever, so I would be very cautious about buying the Roundhill Memory ETF right now. If I did add it to my diversified portfolio, I would ensure it has a very small weighting, under 5%, to keep potential risks in check.

As the crypto winter marches on, Bitcoin has now plummeted nearly 28% this year. This has been particularly difficult for companies like Bitcoin miners that are valued based on their Bitcoin holdings.

Luckily, however, Bitcoin mining is made possible through powerful data centers that use high-speed computers to solve cryptographic puzzles to earn and mine new Bitcoins. Data centers are also fueling the artificial intelligence (AI) revolution.

As crypto continues to struggle, some Bitcoin mining companies have retrofitted their facilities to power AI. Riot Platforms (RIOT -1.01%) just entered into a $9 billion agreement to provide AI compute to Anthropic. Here's why AI is key to valuing crypto-mining companies.

Image source: Getty Images.

Making the conversion comes with rewards
Crypto mining facilities have several key advantages when it comes to becoming an AI data center. For one, they already have a significant head start: They have secured land for a data center, are connected to the power grid, and are up and running. New data centers have received significant pushback from the public due to environmental issues and the threat AI could pose to humanity.

Still, making the transition is not necessarily easy. The hardware used by Bitcoin miners does not work for AI, so these miners need to secure graphics processing units (GPUs) from companies like Nvidia, as well as different fans to keep the chips cool.

Given that the software and infrastructure needs differ, this may also require new personnel to operate effectively. Power consumption and its management also differ for AI, and Bitcoin mining companies may need new permits to operate an AI data center.

But for those that successfully make the transition, the rewards can be immense.

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Riot's $9.1 billion deal with Anthropic is for an initial 20-year term at its Rockdale, Texas, campus. There are also two five-year extensions at Anthropic's option, which could translate into an additional $7 billion of revenue.

This follows an earlier deal this year in which Riot agreed to lease 25 megawatts (MW) of compute capacity to Advanced Micro Devices, with the potential to expand to 200 MW of critical IT load capacity. Riot's deal with Anthropic is for 191 MW of capacity.

The company generated only about $23 million in revenue from its data center division in the second quarter, but you can see how that's going to ramp up quickly: $9 billion over 20 years, split evenly, is about $450 million per year. Riot had roughly $174 million of total revenue in the second quarter.

Valuing these stocks based on potential compute
A major way many investors are valuing neocloud stocks serving AI companies like Anthropic and OpenAI is by looking at total capacity and determining how much they can charge for it, which can help them model total revenue.

Much more goes into that because companies also have to bring all their capacity online to monetize it, which presents its own challenges. And the data center business is capital-intensive, so investors need to assess the potential returns on investment.

The amount data centers can charge for compute may change over time, based on supply and demand. While I don't know the full details of the Riot-Anthropic deal, I suspect Anthropic is not contractually obligated to pay for all 20 years and has the flexibility to exit the deal.

For instance, Anthropic signed a huge compute deal with Space Exploration Technologies, under which it could pull out with 90 days' notice.

Still, looking at Riot, the company could have upside, given its 1.7 gigawatts of fully approved compute capacity. The company trades at a $7.1 billion market cap.

Another Neocloud, Nebius, has a roughly $75.5 billion market cap and plans to have 800 MW to 1 GW of power online by the end of the year. However, Nebius also plans to have 5 GW of contracted power by year's end and then plans to bring 1 GW of power online per year starting in 2027.

So there's a reason for Riot's discount, but you can see how contracted power and actual capacity brought online are everything for neocloud stocks, and thus the Bitcoin miners are trying to become neoclouds.

Wells Fargo, one of the largest banks in the United States, reported approximately $9.18 million in exposure to the Bitwise XRP ETF in its latest quarterly securities filing. The bank manages $2.1 trillion in total assets and $2.5 trillion in client assets, underscoring the institutional significance of this disclosure.

Institutional participation in XRP ETFs growsThe bank’s Q2 2026 13F-HR form, filed with the Securities and Exchange Commission on August 14 and covering holdings as of June 30, 2026, detailed two distinct positions in the Bitwise XRP ETF. The filing includes individual line items of $1.39 million and $7.79 million, both identified under the same CUSIP for the Bitwise product. This indicates the positions are managed across different accounts or fund structures within the bank’s operations.

Xaif, a cryptocurrency market commentator, first drew attention to the filing’s contents, emphasizing the importance of a major US banking institution taking sizeable positions in a digital asset ETF. Xaif described Wells Fargo’s exposure to the Bitwise XRP ETF as “worth watching,” given the bank’s status among the four largest banks in the country.

Wells Fargo, holding $2.1 trillion in total assets and $2.5 trillion in client assets, has revealed approximately $9.18 million in Bitwise XRP ETF exposure across two separate entries: $1.39 million and $7.79 million. The size of these positions highlights the rising level of institutional engagement with XRP products.

Bitwise is a US-based asset management company that specializes in cryptocurrency and digital asset investment products, including a range of exchange-traded funds (ETFs) tailored for institutional and retail investors.

Mini dictionary: 13F-HR filing — A quarterly report required by the SEC from institutional investment managers with assets over $100 million. It details the firm’s holdings in publicly traded securities.

InstitutionETF/ExposureAmount/ValueFiling QuarterWells FargoBitwise XRP ETF$9.18 millionQ2 2026Gallacher Capital ManagementBitwise XRP ETF$961,126Q2 2026Militia Capital ManagementBitwise XRP ETF31,820 sharesQ2 2026Bank of MontrealUndisclosedQ2 2026Q2 2026More institutions disclose XRP-linked holdingsThe revelation comes as a series of financial institutions include XRP-linked products in their regulatory filings. Citadel, a leading hedge fund manager, earlier in 2026 disclosed holdings in call options on the Canary XRP ETF after closing its put positions. Meanwhile, Gallacher Capital Management reported owning 86,744 shares in the Bitwise XRP ETF, valued at $961,126 on its Q2 13F. The Bank of Montreal recently added its name to the list of banks reporting XRP ETF exposure, strengthening the trend of increasing institutional involvement.

Other asset managers, such as Militia Capital Management, have filed amended reports reflecting significant stakes in the same Bitwise XRP ETF. These developments signal growing recognition of XRP products across various segments of the investment industry.

Bitwise XRP ETF draws continued attentionThe Bitwise XRP ETF has appeared in an expanding number of 13F filings throughout 2026, drawing greater focus from institutional investors. Wells Fargo’s current $9.18 million allocation ranks as the largest single holding among disclosed institutions so far this quarter. The continued emergence of new filings signals increasing institutional appetite for digital asset exposure via established ETF vehicles.

Wells Fargo’s investment in the Bitwise XRP ETF and other recent filings reflect deepening institutional engagement with XRP. This quarter’s disclosures have added more significant financial institutions than in any previous period.

Record expansion for institutional XRP filingsThe Q2 2026 reporting period marks a high point for institutional disclosures related to XRP. The filings show a diverse array of entities, from commercial banks to asset managers, allocating capital to XRP ETFs using different product structures and account types. This demonstrates XRP’s widening reach across the financial sector.

Wells Fargo, given its asset base and scale, is now the largest institution to publicly report a position in the Bitwise XRP ETF, consolidating its role in the growing trend of mainstream financial adoption of crypto investment products. With new institutional names appearing in filings each quarter, the landscape of XRP ETF ownership continues to diversify.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

Cardano (ADA) is once again testing a critical rising trendline after its recent bullish breakout, with buyers focused on sustaining the coin’s recovery trajectory. At the same time, the Cardano ecosystem has taken a significant step forward after decentralized representatives approved a major DeFi liquidity proposal, which could help reinforce ADA’s market sentiment if current support levels remain intact.

Cardano price hovers as bullish setup faces major testADA is currently trading at $0.1776, with a 24-hour volume of $121.75 million and a total market capitalization of $6.49 billion. The altcoin has shown signs of consolidation over the previous day, as technical analysts suggest potential for further upward movement if key support holds.

Crypto analyst The Boss observed that ADA retreated to a pivotal rising trendline after breaking out from a rounded-bottom pattern, which had previously established a solid foundation just above crucial support. The analyst noted that the success of buyers in maintaining this structure could strengthen the broader bullish setup. If buyers fail, momentum could weaken and lead to renewed pressure on ADA’s underlying support zones.

Technical metrics, including the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD), are closely watched as they attempt to confirm a return in buying power, while the Average Directional Index (ADX) will indicate if the ongoing trend is sustainable.

If bulls can defend the trendline and overcome resistance, ADA could target $0.2242, $0.3136, $0.3825, and potentially $0.4488.

120 million ADA allocated by DReps to boost DeFi liquidityRecent data show that decentralized representatives, or DReps, within the Cardano network, have approved a plan to allocate 120 million ADA for decentralized finance (DeFi) liquidity. This proposal received the required two-thirds supermajority, providing a substantial infusion of capital into Cardano’s DeFi applications.

The move illustrates Cardano’s ongoing transition toward a governance model driven by community participation. The use of DReps aims to ensure that significant decisions regarding network resources and treasury allocations reflect the consensus of the wider community.

Mini dictionary: DReps (Decentralized Representatives), are elected participants in the Cardano ecosystem who vote on governance proposals and shape the direction of network development.

Cardano’s latest governance decision allocates significant resources for increasing liquidity in decentralized applications, aiming to stimulate further participation and growth across the DeFi sector.

Attention now focuses on how these newly approved funds will be deployed and whether increased liquidity can meaningfully boost engagement in Cardano’s DeFi landscape.

Outlook: Resistance levels and market momentumMarket expectations for ADA’s price remain focused on whether buyers can defend the key uptrend line and sustain the bullish reversal pattern. Analysts believe that a successful rebound could propel ADA toward multiple technical resistance targets, including $0.2242 and potentially $0.45 in the coming sessions.

The approved allocation of 120 million ADA is widely viewed as a catalyst for expanding DeFi liquidity, though the precise impact will depend on how quickly and efficiently these funds are integrated into the ecosystem.

Resistance TargetPrice Level1st resistance$0.22422nd resistance$0.31363rd resistance$0.38254th resistance$0.4488Analysts continue to emphasize caution, citing the inherent volatility of the cryptocurrency market and that market predictions are not guaranteed.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

IonQ (IONQ +2.85%) completed its acquisition of SkyWater Technology at the end of July, handing over about $741 million in cash and roughly 24 million newly issued shares -- total consideration of about $1.8 billion. Against IonQ's market value of about $17.4 billion, that's roughly a tenth of the company spent on a single purchase.

And what it bought isn't a quantum computing company. SkyWater is a semiconductor foundry (a contract chip manufacturer) with plants in Minnesota, Florida, and Texas, and it produced about $442 million of revenue in 2025. That's nearly double the roughly $246 million IonQ itself generated over the past 12 months. The buyer, measured by sales, is the smaller business.

Why would a quantum computing company need to own a chip factory?

Image source: The Motley Fool.

The deal math
Under the terms of the deal, first announced in January and cleared by regulators in late July, SkyWater shareholders received $15.00 in cash plus 0.4883 IonQ shares for each of their shares. The roughly 24 million new IonQ shares amount to about 6% of the company's share count -- meaningful dilution, though to me not reckless for a purchase this central to the company's plans.

And the cash side was easy to cover, though the full bill ran past the headline number -- about $1.1 billion in all, counting roughly $315 million to retire SkyWater debt and pay deal costs. IonQ ended June with $3.0 billion of cash and investments, and it says about $2.0 billion remained after accounting for the acquisition.

The deal's currency matters as much as its size. IonQ paid mostly with stock that trades at a steep premium to any conventional measure of its business today. Using expensive shares to buy hard assets is arguably the most rational use of a richly valued stock, and that's essentially what happened here.

What SkyWater actually makes
SkyWater is a U.S.-based foundry that manufactures chips on mature, specialized processes rather than cutting-edge smartphone silicon. Its business splits between running production for customers and its advanced technology services arm, which develops custom manufacturing processes -- including for quantum companies. SkyWater ended 2025 with eight commercial engagements with quantum computing companies, and its quantum-related services revenue grew more than 30% for the year.

Of course, there's a caveat in SkyWater's own numbers. Revenue rose 29% in 2025, but most of that growth came from the company's purchase of a Texas fab from Infineon in mid-2025, which added $175 million of revenue in the second half.

Still, IonQ didn't buy a stranger. It bought one of the few factories in the country already practiced at making the exotic chips quantum computers require.

That matters because fabrication capacity for this kind of work is scarce. IonQ's machines depend on custom ion-trap chips, photonics, and packaging that mass-market foundries generally don't prioritize. Owning the line gives IonQ direct control of its manufacturing capacity and schedule.

What the roadmap gets
IonQ says the acquisition accelerates its fault-tolerant quantum computing roadmap. Specifically, the company expects quantum processors with 200,000 physical qubits, enabling more than 8,000 high-fidelity logical qubits (the error-corrected units that do useful computing work), to begin functional testing in 2028, and it says development of its 2,000,000-qubit chip moves forward by up to a year. Functional testing means chips working in a lab, to be clear, not commercial systems generating revenue.

"This transformational acquisition enables IonQ to materially accelerate its quantum computing roadmap and secure its fully scalable supply chain domestically," Chairman and CEO Niccolo de Masi said in the company's announcement of the deal.

Those are the company's own promises, and they sit years out. What's checkable today is the business underneath them.

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The tech company reported record second-quarter revenue of $80.1 million earlier this month, up 287% year over year, and raised its full-year revenue guidance to $280 million to $290 million. Commercial customers accounted for about 60% of the quarter's revenue, and management expects organic growth (excluding what acquisitions add) of 100% for the year.

The company remains deeply unprofitable on a net income basis.

Sure, buying a foundry brings hundreds of millions of dollars of annual revenue in the door. But it also adds a lower-margin manufacturing business to a growth stock whose valuation is built on quantum breakthroughs, not contract chipmaking.

I think the deal makes IonQ a more serious company. Vertical integration buys control of a scarce input, and the price (about 6% dilution plus cash it could spare) is not outlandish for that. What the deal can't do is move up the date when quantum computing starts paying for all of this. That date is still years away.

Amid the "SaaS Apocalypse," These 3 Names Are Boosting BuybacksPegasystems NASDAQ: PEGA CFO Ken Stillwell outlined the company’s position as a workflow platform for large enterprises, its expanding AI product capabilities and its plans to improve sales execution following a softer first half for annual contract value growth.

Speaking at a Canaccord fireside chat, Stillwell said Pega serves organizations that need to manage structured, often regulated workflows that cannot readily be addressed with commercial off-the-shelf software. These use cases can include functions such as dispute management, loan origination and other processes requiring specific controls, integrations and customer-facing touch points.

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3 AI and Cloud Stocks With Analyst Conviction and Long RunwaysRather than relying on custom-built applications, which can create technical debt and complicate change management, customers can use Pega’s platform to configure applications and workflow structures, Stillwell said. He characterized the company’s competitive set as including platform providers such as Salesforce, Microsoft and Adobe in certain use cases, along with internally developed software.

Blueprint and Infinity Studio Aim to Speed Development
Stillwell said Pega Blueprint was designed to reduce the lengthy front-end process involved in helping customers identify and visualize applications they want to modernize. Blueprint allows users to identify their industry and problem, define user personas and fields, and map potential integrations to produce a visual representation of a proposed workflow application.

Time to Take Notice: PEGA’s GenAI Blueprint Delivers Huge Q3 BeatHe said customers previously needed extensive meetings, demonstrations, screen mockups and whiteboarding before reaching a prototype stage. In some cases over the past 12 months, customers using Blueprint have created a use-case template and configured an application for deployment in fewer than 90 days, according to Stillwell.

However, he said Blueprint initially did not provide a simple path from the design environment to a production build environment. Pega recently made generally available Pega Infinity 2026, including Pega Infinity Studio, which enables customers to import a Blueprint design into a development environment and use AI to help complete the application.

Infinity Studio had been generally available for about two weeks at the time of the discussion. Stillwell said Pega had previously given a beta version to roughly 20 customers for about three months, using their feedback to refine the product and identify areas for future updates.

Customers are also interested in connecting AI models to Blueprint, Stillwell said. The company supports connections to different models through MCP connections and offers native models within Blueprint. He said building workflows through prompts and discussion represents a newer experience for many Pega customers, which historically used more drag-and-drop development methods.

Fixed AI Pricing and Model Selection
Pega has adopted a model in which it charges customers a fixed AI-enabled price for a unit of work rather than charging per token, Stillwell said. The approach is intended to provide customers with certainty around their costs while putting the responsibility for managing token consumption on Pega.

Stillwell said the company’s architecture helps manage that risk by determining where AI is needed and selecting an appropriate model for each task. Not every activity requires a frontier model, he said, citing automated customer-service call wrap-up as an example of work that could use a less resource-intensive model.

“Our job is to help our clients to only use AI when it is needed to be used, and then when it is used, to use the right model,” Stillwell said.

He compared the company’s approach to cloud pricing, where usage can vary but Pega can estimate costs when it understands a customer’s use cases and operating parameters. Tools involving throttling, governance and model selection also help the company manage potential cost variability, he said.

First-Half ACV Growth Fell Short of Expectations
Stillwell acknowledged that first-half 2026 ACV growth was “unimpressive” and disappointing. He attributed the performance to a combination of factors, including management complacency after a strong start to 2025, insufficient pipeline-building activity late last year and a slower-than-needed shift in the sales organization from a “farmer” mentality to a more proactive “hunter” approach.

He also said enterprise buyers were distracted by AI during the first half, as vendors broadly promoted AI offerings. Pega saw in March and April that its sales activity measures were not progressing sufficiently, he said.

Stillwell said the company’s pipeline entering the second half was significantly higher than it was a year earlier and exceeded the level needed to meet its back-half growth target. He also said many financial-services customers that had been focused on AI governance and compliance earlier in the year had since established AI gateways, control processes, model choices and, in some cases, token-spending budgets.

Pega’s sales activity measures have improved “dramatically” over the prior six weeks, Stillwell said.
The company is monitoring outbound sales activity closely alongside its forecasting process.
Stillwell said Pega has a strong working set of opportunities for the second half.

Cash Flow Outlook and AI Governance Opportunity
Stillwell said Pega’s billing and collections are typically concentrated in the first and fourth quarters. Given lower bookings in the second quarter and the company’s normal seasonal pattern, he said the third quarter could produce slightly negative cash flow, while the fourth quarter is expected to be strong.

If Pega does not recapture its first-half ACV growth shortfall, the company could face pressure on its cash-flow target for the year, he said. He characterized full-year cash flow as likely to be relatively flat year over year. Stillwell nevertheless reaffirmed the framework behind Pega’s target of more than $700 million in free cash flow in 2028, which depends on double-digit ACV growth in 2027 and 2028 as well as operating leverage.

On AI agents, Stillwell said Pega’s workflow technology can provide structure and governance around how agents execute tasks, particularly in regulated activities where processes must be completed in a prescribed sequence. He said AI can be useful for testing, data analysis, extraction, analytics and tactical coding work, but companies remain cautious about allowing agents to generate code or take actions beyond what humans can effectively understand and supervise.

“Left unstructured and uncontrolled, AI will do varied things,” Stillwell said. “Some good, some very bad.”

About Pegasystems (NASDAQ:PEGA)Pegasystems Inc is a software company specializing in customer engagement and digital process automation solutions. Headquartered in Cambridge, Massachusetts, Pegasystems develops enterprise applications designed to help organizations streamline operations, manage customer interactions and automate complex workflows. Its platform supports a wide range of use cases, from sales and marketing optimization to case management and robotic process automation.

The core of Pegasystems' offering is the Pega Platform, a low-code development environment that enables businesses to build and deploy applications with minimal hand-coding.

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

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Shiba Inu layer 2 blockchain Shibarium stays quiet, but its role in the Shiba Inu ecosystem continues to extend beyond transaction activity, Shiba Inu long-time community member Mazrael noted in a recent X reply.

According to Mazrael, Shibarium continues to burn SHIB, powering ShibTorch, an automated token burning portal for Shibarium which converts transaction base fees collected in BONE into SHIB, permanently removing tokens from circulation to reduce supply and control inflation.

Mazrael noted a few hundred million SHIB were burned in ShibTorch over the last couple of weeks despite the relative quietness on Shibarium, adding that "don't need to be noisy to still run."

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it's still shibarium gas shibarium still powers the shibtorch. A few hundred millions Shib burned in it last couple weeks. don't need to be noisy to still run.

— Mazrael.shib (@Mazrael_shib) August 15, 2026 The Shiba Inu community veteran was responding to an X user who asked whether BONE was still relevant. Mazrael responded that the BONE token remains Shibarium's gas and it contributes to burns on ShibTorch.

Shiba Inu daily burn rate surges 2,842%Shiba Inu is making progress in reducing its total supply, as the SHIB burn rate has increased by a staggering 2,842% over the last 24 hours, with a massive 113.63 million SHIB tokens permanently removed from circulation by being sent to dead wallets.

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According to the Shibburn website, 113.63 million SHIB have been burned in the last 24 hours, representing a 2,842% surge in daily burn rate. 147.05 million SHIB have been burned in the past seven days, a 579% increase in weekly burn rate.

The latest burn activity represents one of the biggest single-day burns of SHIB supply over the last few weeks, showing the strong backing from the community. The on-chain holder base of Shiba Inu has also been growing, with the number of holders at 1,678,912.

According to the latest update by Etherscan's SHIB X account, SHIB recorded 98 new holders in the past day, continuing a steady growth in its on-chain community. SHIB has added 728 holders so far in August. Since the beginning of 2026, the token has gained 130,282 holders, according to the figures shared.

Michael N. Intrator, the CEO and president of CoreWeave, Inc. (CRWV -0.97%), reported the sale of 307,692 shares of Class A Common Stock on August 11, according to a recent SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$27.4 millionShares sold (total)307,692Shares sold (directly)200,000Shares sold (indirectly)107,692Post-transaction shares (directly held)1,876,815Transaction value based on SEC Form 4 weighted average sale price ($89.18); post-transaction value based on the August 11 market close ($90.32).

Key questionsWhat is the context for the pricing and timing of this disposition?
Shares were sold at a weighted-average price of $89.18 per share on a date when the company's one-year total return was down by about 30%. As of the August 12, 2026 market close, the stock was priced at $107.73, so it's since recovered a fair amount of losses.What remaining equity exposure does the CEO maintain in the company?
Following this transaction, Michael N. Intrator maintains roughly 1.9 million directly held shares and substantial derivative holdings of 21.9 million direct and 30 million indirect securities.Who are the indirect beneficial owners associated with the remaining holdings?
Indirect equity exposure remains through derivative securities held by the reporting person's spouse, the PMI 2024 F&F GRAT, the Intrator Family GST-Exempt Trust, and the Intrator Family Trust.Company OverviewMetricValueShare Price (as of market close 2026-08-12)$107.73Market Capitalization$58.8 billionRevenue (TTM)$6.2 billionNet Income (TTM)-$1.6 billionCompany SnapshotCoreWeave operates a specialized cloud computing platform providing high-performance GPU and CPU compute resources, storage solutions, advanced networking capabilities, and fully managed services designed to support generative AI and intensive compute workloads for large enterprises.The company generates revenue through flexible consumption-based pricing models, offering clients the choice between virtual servers and bare-metal infrastructure solutions tailored to their computational requirements.CoreWeave serves large enterprises and organizations requiring substantial computational capacity for generative AI applications, machine learning workloads, and data-intensive processing operations.CoreWeave is a specialized infrastructure provider serving the high-growth generative AI market, with $6.2 billion in TTM revenue and a market capitalization of $58.8 billion. The company's competitive positioning centers on delivering purpose-built GPU and CPU infrastructure optimized for AI workloads, addressing the critical infrastructure gap created by surging demand for generative AI capabilities among enterprise customers. Despite current net losses of $1.6 billion TTM, CoreWeave's substantial revenue base and market valuation reflect investor confidence in the structural growth of AI infrastructure demand.

What this transaction means for investorsIntrator sold about 308,000 shares but still holds tens of millions more through direct stock, options, and family trusts, so this trim, priced below where the stock closed, is a sliver of a co-founder's stake rather than a retreat from it. The sale barely registers against the position he keeps.

What actually matters is the machine he's built and how it's paid for. CoreWeave grew second-quarter revenue 112% to $2.6 billion, doubled adjusted EBITDA to $1.5 billion, and sits on a contracted backlog above $100 billion, the kind of demand that led management to raise full-year guidance again. Alongside the latest earnings report, Intrator said the company "reached an important inflection point this quarter as our scale began to translate into expanding operating leverage." The other side of that growth is roughly $35 billion in debt, taken on to buy Nvidia chips and build the data centers that revenue runs through, so CoreWeave is racing to convert breakneck expansion into profits before borrowing costs catch up. That race is key to the investment thesis now. Bond markets recently priced real odds of trouble here, and this quarter pushed back on them, but a company still losing money on a $35 billion debt load lives or dies by whether the backlog keeps converting.

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

Sachin Jain, the chief operating officer of the firm, reported a sale of 13,608 shares of CoreWeave, Inc. (CRWV -0.97%) on August 10, according to an SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$1.3 millionShares sold13,608Post-transaction shares (directly held)147,785Post-transaction value$13.03 millionTransaction value based on SEC Form 4 weighted average sale price ($92.09); post-transaction value based on the August 10 market close ($88.19).

Key questionsWhat were the primary drivers behind this disposal?
The transaction was primarily conducted to meet tax liabilities incurred from the vesting of restricted stock units. This suggests the sale was part of the company's structured compensation plan rather than a discretionary trading decision by the executive based on market conditions.How does this impact the insider's total exposure to the company?
Despite the 8% reduction in direct Class A Common Stock holdings, Jain maintains significant equity alignment with 148,000 shares and 270,000 derivative securities. This remaining stake indicates a continued interest in the firm's operational performance and long-term valuation.What is the context of the stock's recent performance?
The transaction was executed at $92.09 per share, occurring in a period where CoreWeave shares have seen a steep decline over the 12-month period ending on the August 10 transaction date.Company OverviewMetricValueShare Price (as of market close 2026-08-10)$88.19Market Capitalization$50 billionRevenue (TTM)$6.2 billionNet Income (TTM)-$1.6 billionCompany SnapshotCoreWeave provides a specialized cloud computing platform delivering high-performance GPU and CPU compute resources, storage solutions, advanced networking capabilities, and fully managed services designed to support generative AI and intensive compute workloads for enterprise clients.The company generates revenue through a consumption-based cloud services model, offering flexible virtual servers and bare-metal infrastructure options that enable enterprises to scale compute resources according to their specific workload requirements.CoreWeave primarily serves large enterprises and organizations requiring substantial computational capacity for generative AI applications, machine learning workloads, and data-intensive operations across multiple industry verticals.CoreWeave operates as a specialized infrastructure-as-a-service provider focused on the high-performance computing segment, with a market capitalization of $50 billion and TTM revenue of $6.2 billion. The company's competitive positioning centers on delivering optimized GPU and CPU infrastructure specifically architected for generative AI workloads, addressing the growing demand from enterprises seeking dedicated, high-performance alternatives to general-purpose cloud providers. Despite current net losses of $1.6 billion TTM, CoreWeave's substantial revenue base and market valuation reflect investor confidence in the secular growth trajectory of AI infrastructure demand.

What this transaction means for investorsOne day before CoreWeave told investors how the second quarter went, its operating chief exercised stock options and sold a portion to cover the tax. Jain kept the vast majority of his holdings, so the move itself is unremarkable, but CoreWeave is in the middle of proving itself after successfully pivoting from an Ethereum crypto-mining firm to a GPU infrastructure provider for artificial intelligence, which now sees the firm racing to fill orders already on the books.

That race is going well, but carries some risk. CoreWeave grew quarterly revenue 112% to $2.6 billion against a backlog that now tops $100 billion, but a large share of that backlog traces to a handful of enormous customers, with Microsoft and OpenAI among the biggest. So the operation Jain oversees is scaling well while leaning on a short list of buyers. Still, management raised guidance and keeps signing new commitments, which widens that base over time.

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

David Brock Denton, EVP and general counsel of Cintas Corporation (CTAS -0.33%), disposed of 3,479 shares on August 10, according to an SEC Form 4 filing.

Transaction summaryMetricValueTransaction value$705,000Shares sold (directly held)3,479Post-transaction shares29,069Post-transaction shares (directly held)28,096Post-transaction shares (indirectly held)973Transaction value based on SEC Form 4 weighted average sale price ($202.71); post-transaction value based on the August 10 market close ($202.71).

Key questionsWhat was the catalyst for this specific disposition?
The transaction was a non-discretionary transfer to satisfy tax withholding requirements triggered by the vesting of 5,718 restricted shares previously granted under the Cintas Corporation Equity Compensation Plan.What is the extent of the executive's remaining direct and indirect exposure?
Denton retains direct ownership of 28,096 shares and indirect ownership of 973 shares through a 401(k) plan, representing a total ownership stake of less than 0.01% in the company.Are there additional equity incentives that could impact future ownership levels?
The reporting owner holds additional direct derivative securities, representing options outstanding, including vested and unvested awards, which vest in annual one-third increments starting on the third anniversary of the grant date.Does this transaction reflect a change in management's outlook on the stock?
Because this disposition was non-discretionary and used to cover automatic tax obligations related to equity compensation, it does not reflect the insider's independent view on the stock's valuation or current performance.Company OverviewMetricValueShare Price (as of market close 2026-08-11)$205.28Market Capitalization$82.1 billionRevenue (TTM)$11.3 billionNet Income (TTM)$2.0 billionCompany SnapshotCintas Corporation provides professional uniform rental and maintenance services, first aid and safety solutions, and facility services, generating revenue primarily through recurring service contracts across the United States, Canada, and Latin America.The company operates a subscription-based business model where customers pay recurring fees for uniform rental, cleaning, and maintenance services, supplemented by sales of first aid and safety products and facility services.Cintas serves a diverse customer base, including manufacturing facilities, healthcare institutions, hospitality businesses, and other commercial enterprises requiring professional workwear and safety solutions.Cintas Corporation is a leading specialty business services provider with a market capitalization of $82.1 billion and TTM revenues of $11.3 billion, demonstrating substantial scale and market presence. The company's diversified service portfolio and recurring revenue model provide stable cash flows and competitive advantages through high customer switching costs and operational efficiency. With 48,100 employees and established operations across North America and Latin America, Cintas maintains a strong market position in the professional services sector.

What this transaction means for investorsThe insider pattern with Cintas this week was clear. At least five executives had stock vest and gave a piece of it back for taxes on the same day, with Denton in this case keeping about 28,000 shares. When the CEO, chairman, CFO, operating chief, and top lawyer all file the same routine withholding at once, it basically just says the company granted equity on a common schedule; in other words, it certainly doesn't signal anything about their view of the firm.

The business under all those filings, meanwhile, is in good shape. Cintas grew revenue nearly 9% last fiscal year and reached a record 51% gross margin, extending a steady growth record. The item on Denton's desk that matters most to shareholders is the pending acquisition of UniFirst, a deal his legal team is shepherding through an FTC second request, the regulator's signal that it wants a harder look before letting the industry leader buy a sizable rival. Whether that deal clears is an open question, and that's what an investor worried about Cintas should actually be looking at.

Jonathan Ponciano has no position in any of the stocks mentioned. The Motley Fool recommends Cintas. The Motley Fool has a disclosure policy.

Sui’s native token SUI saw its price stabilize near key support levels as buyers showed signs of renewed confidence, defending critical thresholds following a recent downtrend. This comes amid growing network developments and Sui’s latest integration with Hadron, Tether’s infrastructure for institutional tokenization of real-world assets (RWAs).

SUI price recovers after recent declineAt the time of writing, SUI is trading at $0.6809. It recorded a 24-hour trading volume of $86.04 million and currently holds a market capitalization of $2.77 billion.

Technical analysis from the crypto analyst BitGuru identified the $0.675 price zone as a key area where buyers have managed to maintain support. If SUI continues to hold above this level, analysts expect a short-term push towards the $0.70 to $0.72 range. Such movement could indicate that selling pressure is easing and bullish momentum may be returning.

However, concerns remain. If SUI drops below the $0.65 support zone, the bullish setup could be invalidated, possibly prompting further declines. Market participants are closely watching the $0.675 area for signs of either recovery or renewed weakness.

A stabilization above the $0.675 support level could pave the way for a recovery towards $0.70–$0.72, while any slip below $0.65 may lead to accelerated sell-offs.

MetricCurrent ValuePrice$0.680924h Trading Volume$86.04 millionMarket Capitalization$2.77 billionKey Support Level$0.675Key Resistance Target$0.72Sui’s integration with Tether’s Hadron for institutional RWA tokenizationSui has completed its integration with Hadron, developed by Tether, to strengthen its position in the real-world asset tokenization sector. Hadron provides tools for institutions to tokenize equities, bonds, and commodities efficiently using an object-centric, high-speed blockchain architecture.

Hadron’s live connection to Sui brings its sub-400ms transaction finality and scalable infrastructure into play, facilitating compliant and rapid issuance of tokenized assets. This development is expected to enhance Sui’s role in the institutional adoption of blockchain for real-world financial instruments.

Mini dictionary: Hadron is an infrastructure platform developed by Tether to enable the tokenization of real-world assets such as equities, bonds, and commodities on blockchain networks. The platform aims to provide institutions with a regulatory-compliant framework for asset issuance, management, and lifecycle handling using object-oriented blockchain technology.

Sui is a layer-1 blockchain known for its object-centric design and high throughput, aiming to support a broad range of decentralized applications with rapid settlement times. The addition of institutional-grade tools further positions Sui as a platform for scalable RWA solutions.

Market outlook for SUINetwork growth and innovations such as the Hadron integration have boosted optimism around SUI’s price trajectory. Some analysts consider the convergence of positive technical structure and broader crypto market recovery, led by Bitcoin’s upward movement, as factors that could support further gains for the token.

In the coming days, the direction of SUI’s price is expected to depend on buyers’ ability to hold current support levels and generate additional upward momentum. Should SUI establish a solid base above key support thresholds, market participants will be watching for a test of the $0.70 to $0.72 resistance area.

Conversely, if SUI fails to sustain above these supports, additional declines remain possible amid continued volatility.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

Hyperscalers are investing in data centers at an astounding pace. However, these data centers are facing a major bottleneck: energy. While constructing a data center may take up to two years, developing the necessary grid infrastructure can take four to 10 years, or longer.

Demand is only going up from here. According to the International Energy Agency, data center power consumption averaged about 540 kilowatt-hours (kWh) per capita in 2024, with projections indicating it could rise to 1,200 kWh per capita by 2030.

Companies with power capacity to meet the expanding energy demands of data centers, such as Constellation Energy (CEG +1.39%) and Vistra Energy (VST +1.18%), are positioning themselves as key players amid this AI-driven capex boom.

Image source: Getty Images.

Energy stocks have gone from boring, stable investments to AI growth plays Energy stocks are historically viewed as low-growth, defensive stocks due to their stable businesses and steady demand for energy. However, the rapid expansion of AI data centers is turning this on its head, and energy stocks are now becoming AI growth plays amid the unprecedented surge in power demand.

Because AI data centers need reliable baseload power, many are getting creative with what type of power they use and where. Since many of these technology companies have decarbonization mandates, more are turning to utilities that provide carbon-free nuclear energy or other low-carbon power sources.

Hyperscalers are locking in energy with multi-decade power purchase agreements Amid this backdrop, independent power producers such as Constellation Energy and Vistra Energy have secured a slew of long-term agreements with hyperscalers and others in the AI space.

For example, in the second quarter, Constellation signed roughly 920 megawatts (MW) of long-term nuclear contracts with corporate customers, averaging 18.5 years, locking up about 30% of its clean baseload output under long-term agreements.

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It also signed a power purchase agreement with Walmart, representing the retailer's first-ever nuclear energy agreement. The agreement includes approximately 176 MW of wholesale supply from the Dresden Clean Energy Center in Illinois across two 15-year terms starting in 2029 and 2030. This builds on the company's earlier agreements with Microsoft and Meta Platforms.

Earlier this year, Vistra signed a massive power purchase agreement with Meta Platforms for 2,600 MW of energy and capacity at its PJM nuclear site. It also signed a long-term contract with Amazon Web Services for up to 1,200 MW of power from its nuclear plant in Texas.

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In June, Vistra partnered with KKR, Nvidia, and the Kuwait Investment Authority to form Helix Digital Infrastructure, an infrastructure development and financing company with $10 billion in capital commitments, including $1 billion from Vistra. Vistra will serve as the preferred power partner for both new-build and existing projects.

Constellation and Vistra are bets on the AI-driven energy shortage Constellation and Vistra are seeing robust energy demand, and both benefit from their IPP business models and massive nuclear energy capacity. These companies have locked in multi-decade, fixed-price agreements with built-in inflation escalators.

The companies remain vulnerable to the regulatory backdrop, including scrutiny around co-location or behind-the-meter deals. They also face the risk of AI capex drying up, which would reduce projections for energy demand growth.

With that said, for investors looking to capitalize on the shortages created by the massive data center build-out, Constellation and Vistra, both down 32% from their 52-week highs, are two intriguing energy stocks to play these tight power markets.

Courtney Carlsen has positions in Constellation Energy, Meta Platforms, Microsoft, Nvidia, and Vistra. The Motley Fool has positions in and recommends Amazon, Constellation Energy, KKR, Meta Platforms, Microsoft, Nvidia, Vistra, and Walmart. The Motley Fool has a disclosure policy.

Advanced Micro Devices (AMD +6.50%) priced the largest bond offering in its history on Thursday -- $4.75 billion of senior notes, spread across four tranches maturing between 2029 and 2036.

The sale is more than triple the $1.5 billion the chipmaker raised in its last bond offering, in March 2025. And that sale had a specific job, helping fund the company's acquisition of server builder ZT Systems. This time, management says the proceeds are for "general corporate purposes, which may include the repayment of debt." In other words, no specific job at all.

A company usually borrows this much because it needs the money. AMD doesn't, at least not on paper. It ended its second quarter with $13.1 billion in cash and short-term investments, and it generated $2.4 billion in operating cash flow during the quarter alone.

What, then, is AMD preparing for?

AMD CEO Lisa Su. Image source: Advanced Micro Devices Inc.

A record sale at friendly prices
The four tranches break down like this: $1.25 billion due in 2029 at a 4.6% coupon, $1.5 billion due in 2031 at 5%, $1 billion due in 2033 at 5.25%, and $1 billion due in 2036 at 5.5%. Altogether, the new debt will cost AMD about $240 million a year in interest.

The notes priced at spreads of just 0.43 to 0.9 percentage points above comparable U.S. Treasuries. Bond investors are lending to AMD at rates barely above what they charge the U.S. government -- treatment usually reserved for the market's steadiest blue chips.

AMD raised $1 billion in a 2022 bond offering and $1.5 billion in 2025. Now it has borrowed $4.75 billion in one swing. The company's appetite for debt is stepping up, and quickly.

Why borrow now?
AMD's business is scaling at a pace that consumes serious capital.

Second-quarter revenue rose 50% year over year to a record $11.5 billion, up from $10.3 billion in the first quarter. The company's data center segment led the way, with revenue more than doubling year over year to $6.7 billion (58% of total revenue). What's more, management guided for about $13 billion of revenue in the third quarter, which would be roughly 41% year-over-year growth.

"We enter the second half with strong momentum as EPYC demand accelerates, Instinct deployments scale and Helios begins to ramp," said CEO Lisa Su in the company's second-quarter earnings release.

Helios is AMD's rack-scale artificial intelligence (AI) reference design -- essentially a blueprint for a full cabinet of its chips and networking that OEM partners build into their own systems. And ramping something like that likely means paying for capacity, components, and inventory well ahead of the revenue they produce.

Capital expenditures are part of the picture, too. AMD spent $808 million on them in the second quarter.

Its free cash flow of $1.6 billion, while healthy, is modest next to the build-out the company is guiding toward. Locking in three-to-10-year money at around 5% while business is booming is a sensible way to make sure funding can never become the constraint. And AMD is hardly alone here. Alphabet, for example, sold $25 billion of bonds in early August.

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The balance sheet can carry it
Even after the new notes settle, AMD's finances look conservative. Total debt goes from about $3.2 billion to roughly $8 billion, while cash and short-term investments (already $13.1 billion before the proceeds arrive) will exceed that comfortably. After all, the new interest bill of about $240 million a year compares with $2.4 billion of operating cash flow in the most recent quarter alone.

In short, this borrowing doesn't appear to make AMD a riskier company in any meaningful way. If anything, I'd argue it strengthens the company's hand in a race where rivals and customers alike are spending heavily.

What does ask a lot of investors is the stock's price. Shares trade around $514 as of this writing, up more than 6% Friday, and the stock now costs more than 130 times its earnings over the past year. Earnings are growing fast enough to shrink that number quickly (earnings per share more than doubled year over year in the second quarter). But at that level, the price already assumes years more of growth like this.

The debt looks like the cheap part of the AMD story. The expectations are the expensive part.

NEWPORT NEWS, Va., Aug. 15, 2026 (GLOBE NEWSWIRE) -- HII (NYSE: HII) announced today that its Newport News Shipbuilding (NNS) division has successfully completed acceptance sea trials of John F. Kennedy (CVN 79), the second Gerald R. Ford-class nuclear-powered aircraft carrier.

Kennedy returned to NNS after further testing and evaluation of important ship systems and components at sea. Earlier this year, Kennedy underwent successful builder’s sea trials.

“It is an honor to take Kennedy to sea to demonstrate the quality work and commitment by our shipbuilders,” said Derek Murphy, NNS vice president of new construction aircraft carrier programs. “This critical set of sea trials is a testament to the entire nuclear shipbuilding enterprise and the work of thousands across our country to prepare CVN 79 to join the fleet.”

The sea trials brought together NNS shipbuilders, John F. Kennedy sailors and Navy personnel to execute the testing and evaluation of ship operations.

CVN 79 continues the legacy of highly capable nuclear-powered aircraft carrier platforms. With the successful completion of acceptance trials, the next step for the ship is preliminary acceptance that will enable the Navy to begin underway test and evaluation of Kennedy’s unique systems.

Photos accompanying this release are available at: http://hii.com/news/hiis-newport-news-shipbuilding-completes-successful-acceptance-sea-trials-of-john-f-kennedy-cvn-79/.

About HII

HII is America’s largest shipbuilder, delivering the world’s most powerful ships and all-domain mission technologies, including unmanned systems, to U.S. and allied defense customers. HII is the largest producer of unmanned underwater vehicles for the U.S. Navy and the world.

With a more than 140-year history of advancing U.S. national security, HII builds and integrates defense capabilities extending from the core fleet to C6ISR, AI/ML, EW and synthetic training. Headquartered in Virginia, HII’s workforce is 45,000 strong. For more information, visit:

HII on the web: https://www.HII.com/HII on Facebook: https://www.facebook.com/TeamHIIHII on X: https://www.twitter.com/WeAreHIIHII on Instagram: https://www.instagram.com/WeAreHIIHII on LinkedIn: https://www.linkedin.com/company/wearehii
Contact:

Todd Corillo 
[email protected]
(757) 688-3220

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ae46f4c2-3750-4ec1-94df-c0ec56760376

XRP is currently trading near its lowest level since November 2024, even as on-chain activity and institutional interest have increased. Recent comments from prominent analysts in Japan and Europe point to renewed discussions about a potential repricing of this cryptocurrency.

Japanese analyst highlights XRP’s unique roleYasuo Matsuda, Senior Analyst at Rakuten Wallet, has offered a positive outlook on XRP, describing it as “uniquely exceptional” within the digital asset landscape. Rakuten Wallet is a widely recognized financial platform in Japan known for its active support of regulated cryptocurrency trading.

Matsuda cited XRP’s design, emphasizing that it was originally developed as a crypto asset for remittance. He stated that this fundamental utility will eventually be reflected in XRP’s market capitalization and price, arguing that a repricing is only a matter of time.

Japan’s long-standing regulatory framework for digital assets has positioned it as a progressive environment for crypto projects to develop. Expert analysis from local financial institutions is often seen as especially influential within the sector.

Yasuo Matsuda, Senior Analyst at Rakuten Wallet, called XRP “uniquely exceptional,” pointing to its original purpose as a remittance asset and suggesting that this value will ultimately be visible in the market capitalization.

European analysts and institutional movesAnalysts outside Japan have voiced similar views. In Germany, a financial expert highlighted XRP’s technical position, calling it “brutally oversold.” The term “oversold” signals a situation where the asset’s market price is below what technical indicators support.

Recent institutional disclosures appear to echo this line of thinking. Ironbridge Private Wealth, a financial services firm, reported holding a combined $10 million position in the Bitwise XRP ETF and Volatility Shares XRP ETF, amounting to about 1.2 million shares in total.

Such positions suggest that some investors anticipate either a recovery or upward movement in XRP’s price in response to fundamental and technical factors.

Mini dictionary: Ironbridge Private Wealth — A financial advisory firm offering investment management services, including positions in digital asset Exchange Traded Funds (ETFs).

InstitutionETFPosition SizeShares HeldIronbridge Private WealthBitwise XRP ETF, Volatility Shares XRP ETF$10 million1.2 millionRising activity and regulatory developmentsMultiple indicators point to increasing activity on the XRP Ledger. The number of active addresses in August grew about one third compared to July, with August 11 marking the busiest day for activity.

AI agent transactions using the x402 protocol on the XRP ledger have approached 2 million, reflecting growing integration of advanced settlement technologies.

Mini dictionary: x402 protocol — A specification that enables automated payment and data transfer by AI agents directly on the XRP Ledger, facilitating seamless machine-to-machine transactions.

Additionally, Ripple moved 50 million XRP from its company-controlled wallet, an event identified as rare and potentially connected to strategic decisions. Ripple, the company behind the XRP cryptocurrency, seeks to modernize global financial infrastructure through real-time cross-border settlement solutions.

On the policy front, the US SEC is preparing to introduce new rules, potentially allowing crypto projects to raise funds without standard registration requirements. Ripple’s chief business officer, Reece Merrick, noted that the company’s mission includes “rewiring the financial system,” particularly focusing on institutional adoption, real-world asset tokenization, and expansion in regions such as the Middle East.

The combination of rising on-chain activity, significant wallet movements, and regulatory changes fuels expectations for an eventual price adjustment in XRP, even as current market levels remain subdued.

The path forward for XRP pricingThe discussion around repricing centers on the divergence between XRP’s trading price and the broader utility and activity within its network. Analysts and institutional buyers contend that this gap represents potential for upward movement, though the timing of any significant price change remains uncertain. XRP has maintained a prominent position among digital assets for over a decade, but observers continue to watch for market dynamics that could align its price with its underlying developments.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

Why NXP Semiconductors Could Be the AI Stock Everyone Is MissingNXP Semiconductors NASDAQ: NXPI sees a meaningfully improved business environment compared with 90 days ago and a year ago, with book-to-bill ratios solidly above one across its end markets, according to Senior Vice President of Investor Relations Jeff Palmer.

Speaking at a KeyBanc Capital Markets conference, Palmer said lead times have begun to extend in certain areas, distribution inventory has returned to the company’s 11-week target, and customer escalations—orders placed inside lead times—have increased. NXP has also implemented targeted price increases in response to inflation in certain input costs, though Palmer described the first-half impact as immaterial to overall financial results.

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These 3 AI Stocks Just Crushed Earnings: Still Time To Buy?“All in all, I’d say we feel very good about where things are at,” Palmer said.

Inventory and Automotive Supply Palmer said NXP is not planning to hold inventory on behalf of automotive Tier 1 suppliers, even as some suppliers maintain lower-than-desired levels of NXP components. The company’s preferred inventory level for these customers is roughly 10 to 12 weeks, but Palmer said a number of large Tier 1s currently hold only three to six weeks of inventory.

Why NXP Semiconductors’ Post-Earnings Dip Could Be a Buying WindowSome vehicle manufacturers are holding inventory in targeted situations for their suppliers, Palmer said, but he characterized that practice as limited rather than broad-based. He said Tier 1 suppliers may eventually face longer waits if NXP needs to start production from raw die rather than finished goods or available die inventory.

NXP currently has 156 days of inventory, versus a target of 110 days. Palmer said approximately 15 to 20 days of inventory by year-end will likely represent buffer stock related to the company’s ongoing fabrication-site rationalization efforts. He said the company would prefer to reduce overall inventory and emphasized that its model is fundamentally build-to-order.

Automotive conditions began improving for NXP in late 2025, Palmer said, and in the company’s most recently reported quarter, all automotive geographies and product categories grew. He described the automotive market as generally healthy despite low order rates from certain Tier 1 customers.

Palmer said NXP views the global auto market as a roughly 90-million-unit market over time. While Chinese automakers have “clearly” won the electric-vehicle battle from NXP’s perspective, he said weaker domestic Chinese sales have been partly offset by exports from larger manufacturers. European auto companies face challenges in determining their next phase, he added, though luxury brands should continue to benefit from customer loyalty.

Vehicle Technology and Physical AI NXP said its accelerated automotive growth drivers accounted for just under 50% of automotive revenue in the latest quarter and grew strongly year over year. Those drivers include software-defined vehicles, radar and battery-management systems. The company also cited longer-term customer programs that are expected to begin production between late 2027 and 2030.

Palmer highlighted NXP’s five-nanometer S32N automotive product, for which an initial customer is expected to begin taking product in late 2027 for a 2028 model year program. He also said customer engagement for the company’s 16-nanometer S32K5 zonal product has been particularly strong, although revenue from those programs remains several years away.

The company is also seeing early interest in automotive artificial-intelligence applications, including in-cabin systems that could use distilled large language models to interpret voice commands locally. Palmer said these opportunities could allow car manufacturers to maintain ownership of the model and voice interface, but stressed that they are not yet generating revenue.

In industrial markets, NXP’s smaller embedded neural processing units, or NPUs, accounted for about 6% of its industrial internet-of-things processor business in 2025 and are expected to represent about 15% in 2026, according to Palmer. The company’s Kinara NPU offers about 40 TOPS of performance and can be paired with NXP’s i.MX application processors.

Palmer said Kinara’s opportunity pipeline grew to approximately $1.5 billion from $1 billion last year, calling it the fastest-growing pipeline in the company’s history. He cautioned, however, that opportunities still must progress through proof-of-concept work, design wins and ultimately revenue.

Data Center, Manufacturing and Margins NXP expects its data-center business to double to $500 million this year, Palmer said. The company focuses on control-plane management rather than data-plane processing or power delivery. About half of its current data-center business comes from its Layerscape control-plane switch products, which have gained traction with a small number of hyperscale customers.

NXP is developing a next-generation, five-nanometer data-center product family that could sample in 2027 and begin production ramping in 2028 or later. Palmer said the company hopes the product will broaden its addressable market with additional hyperscalers. Its board-management control business, meanwhile, serves ecosystem participants, server original design manufacturers in Taiwan and other hyperscalers, with functions including security, power and cooling controls.

The company is seeing cost pressure primarily in packaging, testing, precious metals and substrates rather than wafer supply. Palmer said NXP’s major wafer partners, TSMC and GlobalFoundries, remain reliable suppliers. NXP produces about 40% of its wafers internally and sources about 60% externally.

Its Singapore joint venture, VSMC, is expected to have capacity of 55,000 wafers per month, with NXP receiving 40% of output. Once fully operational, Palmer said NXP’s wafer mix could shift toward 80% outsourced and 20% internally produced. The company is also rationalizing its three older internal eight-inch fabrication facilities.

On profitability, Palmer reiterated NXP’s rule of thumb that each additional $1 billion in revenue can generate roughly 100 basis points of gross-margin expansion. The company remains confident in its long-term target of approximately $16 billion in revenue and a 60% gross margin in 2027, plus or minus, he said.

About NXP Semiconductors (NASDAQ:NXPI)NXP Semiconductors N.V. is a global semiconductor company headquartered in Eindhoven, the Netherlands, that designs and supplies mixed-signal and standard product solutions for a broad range of end markets. The company focuses on enabling secure connections and infrastructure for embedded applications, developing technologies used across automotive, industrial and Internet of Things (IoT), mobile, and communication infrastructure segments. NXP's offerings target customers that require reliable, secure, and high-performance semiconductor components for connected devices and systems.

Product lines include microcontrollers and application processors, secure elements and authentication technologies, RF and high-power analog components, connectivity solutions, and vehicle networking and infotainment systems.

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

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Should You Invest $1,000 in NXP Semiconductors Right Now?Before you consider NXP Semiconductors, you'll want to hear this.

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Robotics and automation are rapidly becoming essential infrastructure across healthcare, manufacturing, logistics, and many other industries.

"Physical AI" is coming to the United States, and there are four ways that investors can gain exposure to this new robotics revolution. Plus, learn which seven companies are most positioned to benefit as intelligent robots enter the workforce.

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Nillion’s NIL token jumped roughly 22% in 24 hours after the project announced it had integrated Chainlink’s Cross-Chain Interoperability Protocol, known as CCIP. The integration, revealed on August 14, enables secure NIL token transfers between Ethereum and HyperEVM, effectively unlocking trading access on Hyperliquid, one of the most active perpetuals platforms in DeFi.

Chainlink confirmed the integration the same day, giving the announcement an extra layer of credibility that traders clearly appreciated.

What the CCIP integration actually does For Nillion, this means NIL holders can now move tokens between Ethereum and HyperEVM without relying on less battle-tested bridging solutions. The practical upshot is access to Hyperliquid, which has carved out a reputation as a go-to venue for perpetual futures trading with deep liquidity.

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Before this integration, NIL’s trading venues were more limited. Now, traders on Hyperliquid can take positions on the token, which typically drives both volume and price discovery.

Nillion’s bigger strategic picture Back in March, the project migrated its NIL token from a Cosmos-based chain called nilChain to Ethereum as an ERC-20 token on a 1:1 basis. That migration was a deliberate pivot toward Ethereum’s Layer 2 ecosystem.

Nillion itself operates as what it calls a “blind computer” network. The core idea is privacy-preserving computation, where data can be processed and stored without exposing its contents. The NIL token powers this ecosystem through transaction fees, governance voting, and staking.

Why the market reacted so strongly Second, the Hyperliquid angle matters more than it might seem at first glance. Perpetuals platforms are where much of crypto’s most active trading volume lives. Getting listed on Hyperliquid doesn’t just add another exchange to the roster. It opens NIL to a class of traders who specialize in leveraged positions and short-term momentum plays.

Third, there’s the timing relative to the Cosmos-to-Ethereum migration. Five months after switching blockchain homes, Nillion is already shipping meaningful integrations that validate the decision.

The elevated trading volume accompanying the price move also suggests this wasn’t just a thin-liquidity spike.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

3 Under-the-Radar Healthcare CompaniesNatera NASDAQ: NTRA Chief Financial Officer Mike Brophy said the company delivered strong second-quarter momentum across its women’s health, oncology and organ health businesses, citing record Signatera volumes, continued revenue and average selling price strength, improved gross margins and narrowing losses while maintaining elevated investment levels.

Speaking at the Canaccord Genuity Growth Conference, Brophy said Natera raised its outlook following a quarter in which volume performance was broad-based. He described organ health momentum as “very strong” and said women’s health posted high-single-digit year-over-year growth despite typically experiencing seasonal sequential declines.

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Women’s Health Momentum and Product Updates
Myriad Genetics Sees Stock Surge with Hereditary Cancer TestsBrophy attributed part of the women’s health performance to uptake of Natera’s Fetal Focus offering, which launched several quarters ago and continued to gain traction through the second quarter. He also highlighted the June launch of a new version of the Panorama non-invasive prenatal testing assay.

The updated Panorama test is designed to offer greater sensitivity, particularly in cases with low fetal fraction, an area that Brophy said has historically been challenging for non-invasive prenatal testing. Because the launch occurred in early June, he said it was not a significant driver of second-quarter results but could support women’s health performance during the remainder of the year.

While Brophy characterized the quarter as exceptional, he said his typical framework for women’s health is mid-single-digit volume growth, with the opportunity for faster revenue growth if Natera can increase reimbursement realization for covered services.

Record Signatera Volumes
The company’s oncology business, led by its Signatera molecular residual disease and recurrence-monitoring test, reached more than 280,000 units during the quarter. Brophy said the company added approximately 34,000 units sequentially, compared with a prior quarterly record increase of about 25,000 units.

He noted that first-quarter Signatera volumes were somewhat affected by weather-related disruptions. Natera estimates that roughly 2,000 to 4,000 units that otherwise may have been received in the first quarter arrived later, contributing to the magnitude of the second-quarter sequential increase. Even excluding that effect, Brophy called the quarter an “absolute blowout.”

He cited several drivers of Signatera’s growth:

Continued generation of clinical outcomes data for Signatera and molecular residual disease testing.
FDA approval related to Signatera’s use in muscle-invasive bladder cancer.
Inclusion in National Comprehensive Cancer Network guidelines for muscle-invasive bladder cancer in June.
The full operational impact of a commercial expansion completed around April.

Brophy said newer offerings, including Genome and Latitude, accounted for only a small portion of total Signatera volume. However, he said their availability broadens the company’s product menu and may enhance Signatera’s positioning with physicians.

Coverage, International Expansion and Laboratory Investment
Natera expects to continue pursuing reimbursement coverage on a tumor-type-by-tumor-type basis, Brophy said. He described the company’s interactions with MolDX, Medicare’s molecular diagnostic services program, as positive and said Natera has now achieved coverage across much of the critical mass of common tumor types. The company is now working on additional, less common cancers, he said.

In Japan, Natera has received PMDA approval for Signatera and has submitted for bladder cancer coverage following its approval in colorectal cancer. Brophy said the company remains on track for an early 2027 Japanese launch. The next steps include discussions with Japanese agencies regarding the number of reimbursed testing time points and pricing, which he expects to be addressed in the second half.

The company is also expanding laboratory capacity. Brophy said Natera’s Austin, Texas, laboratory is expected to become the world’s largest genomics laboratory once its current expansion is completed. First-half capital expenditures increased to approximately $85 million from about $45 million in the prior-year period. He said the elevated spending level is not expected to represent ongoing maintenance capital expenditures, which he estimated at closer to $60 million annually.

Early Cancer Detection Investment
Brophy said Natera remains ambitious in early cancer detection, where its FIND-CRC study is approaching enrollment completion at up to 40,000 patients. He emphasized the expense and complexity of bringing a blood-based early cancer detection assay to market, estimating that a company may need to spend roughly $500 million before selling its first test when clinical development and regulatory work are included.

Rather than immediately building a large commercial team, Brophy said Natera expects to use a phased approach, deploying an initial group of sales representatives in selected geographies and expanding based on early results and returns on invested capital.

He acknowledged that early cancer detection spending is currently weighing on the company’s overall profit profile because the program is generating operating expenses without revenue or gross profit. Still, he said Natera is seeing losses narrow while continuing to invest in research and development, Signatera clinical studies and commercial growth initiatives.

Looking internationally, Brophy said Natera sees significant demand for Signatera in Europe following IVDR approval. He said reimbursement opportunities will need to be evaluated country by country and use case by use case, while noting that the company is conducting clinical studies in Europe, including CIRCULATE-France.

About Natera (NASDAQ:NTRA)Natera is a global diagnostics company that develops and commercializes cell-free DNA and other genetic testing technologies for clinical applications. The company focuses on three principal areas: reproductive health (including non-invasive prenatal testing and carrier screening), oncology (tumor-informed assays for minimal residual disease and recurrence monitoring), and organ transplantation (cell-free DNA tests to detect allograft injury). Natera combines laboratory testing, proprietary bioinformatics, and clinical reporting to deliver personalized genetic information to clinicians and patients.

Key product offerings include Panorama, a non-invasive prenatal test that screens for fetal chromosomal abnormalities and select single-gene conditions; Horizon carrier screening for inherited conditions; Signatera, a personalized, tumor-informed assay used for detecting minimal residual disease and monitoring treatment response in cancer patients; and Prospera, a donor-derived cell-free DNA test used to assess the risk of organ rejection.

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Space Exploration Technologies (SPCX -0.91%) has taken investors on a rough ride since its initial public offering (IPO) in June. After reaching an all-time intraday high of $225.64 on June 16, the stock later fell below its $135 IPO price, sinking at one point to a low of $104.83. The stock has this month recovered back to around the IPO price, but it still sits well below $150, the price at which it opened its first day of public trading.

Image source: Getty Images.

That said, the company's financial performance is improving. In the second quarter, SpaceX's revenue surged 92% year over year to $7.8 billion, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 191% to $3.5 billion.

Analysts have also been sharply raising their expectations for the company's future revenue and now expect SpaceX to generate roughly $102 billion in revenue in 2027, up from about $72 billion at the end of July 2026.

Here's why SpaceX stock can reach roughly $220 by June 2027, representing about 50.5% upside from its Aug. 12 closing price.

Starlink is the profit engine, but AI is growing faster
The connectivity segment, which includes the Starlink satellite internet business, remains SpaceX's profit engine. That segment generated $4.3 billion in revenue and $1.7 billion in operating income in the second quarter. Starlink's subscribers doubled year over year to 12 million.

Today's Change

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SpaceX's artificial intelligence (AI) business is growing even faster, with revenue rising almost 247% year over year to $2.6 billion in the quarter. While AI accounted for nearly one-third of SpaceX's total sales, the segment reported a $1.3 billion operating loss. SpaceX also spent $15.8 billion on AI capital expenditures in the second quarter.

The company's massive investments in infrastructure could pay off if analyst forecasts prove accurate. Analysts at Goldman Sachs and Morgan Stanley have projected that SpaceX could generate around $160 billion in revenue and $110 billion in adjusted EBITDA in 2028.

How SpaceX stock could reach $220
By June 2027, SpaceX's share price will most likely reflect investors' expectations for the company's 2028 growth.

Following its IPO, SpaceX had roughly 13.2 billion shares outstanding. The company's pending $60 billion all-stock acquisition of Cursor AI's parent company Anysphere could add close to 410 million shares based on the Aug. 12 closing share price. However, the actual share issuance will depend on where they are priced at the time the transaction is finalized.

SpaceX also has hundreds of millions of shares underlying outstanding employee stock options and restricted stock units, which will create additional dilution over time. In light of that, assuming that it will have 13.7 billion shares outstanding at the end of June 2027 provides a reasonable adjustment to anticipate additional dilution.

SpaceX was trading at about 18.9 times expected 2027 sales as of Aug. 12. If the company generates the roughly $160 billion in 2028 revenue projected by Goldman Sachs and Morgan Stanley and continues trading at that multiple, its market value would reach about $3 trillion. Dividing the market capitalization by the assumed 13.7 billion shares implies a stock price of roughly $220.

However, the biggest risk is SpaceX's enormous capital spending. The company's capital expenditures reached $18.4 billion in the second quarter, more than twice its revenue in the period. If investments in AI infrastructure and the next-generation reusable rocket system Starship fail to generate strong returns, investors could become less willing to give SpaceX stock the premium valuation it currently carries.

But if SpaceX delivers results near Wall Street's 2028 forecasts while maintaining a valuation close to current levels, the stock could generate significant returns for shareholders by the end of June 2027.

In this episode of Motley Fool Hidden Gems Investing, Motley Fool contributors Tyler Crowe, Travis Hoium, and Lou Whiteman discuss:

Palantir's earnings and guidance.The case for model-agnostic AI.Caterpillar's incredible quarter.Is Spotify a growth stock or a value stock?To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. When you're ready to invest, check out this top 10 list of stocks to buy.

A full transcript is below.

This podcast was recorded on Aug. 4, 2026.

Tyler Crowe: Palantir takes shots at OpenAI and Anthropic today on Motley Fool Hidden Gems Investing. Welcome to Motley Fool Hidden Gems Investing. I'm your host, Tyler Crowe. Today, I'm joined by longtime Fools Lou Whiteman, Travis Hoium, doing a little bit of mixing it up everyone's getting those last-minute summer vacations in before the kids got to go back to school. We'll probably see a lot of host shuffling and guest shuffling over the next couple of weeks.

We are deep in earnings season, and we had three really big earnings reports today, a lot of contrasting things going on in the market. We want to start today with Palantir because, as we're recording, shares are up 26%. The company reported earnings after the close yesterday that beat expectations handily. They increased guidance. Everything looked pretty good. Now, there's been a lot of beat expect earnings so far this season, guys, but I have yet to see one that's really resulted in the market celebrating like we have seen with this one. What exactly was it about Palantir's earnings?

Lou Whiteman: They just blew it out of the park. They just had fantastic results. This is a company with a lot of hubris, and sometimes the hubris is justified. Ninety-three percent year over year, top-line growth. If you want to look trailing 12 months, 79% growth, so this isn't an anomaly, 51% cash flow margins. That's fantastic. The question forever here has been, there's no way you can justify the valuation here if it's a defense contractor. For all our jokes about the Pentagon budget, the Pentagon just doesn't spend money at the rate needed to justify Palantir's valuation. Commercial had been the laggard, but commercial was up 150%. This is exactly what you want.

Travis, I'm curious, what do you think? I can squint and maybe see remaining performance obligations were flat? So maybe that might be a dent, but even then, commercial is different than government, so that could be an adjustment, but I don't know. Tell me what's wrong here? This is just fantastic.

Travis Hoium: It's hard to quibble with any of the numbers. It is always hard for me to wrap my head around a company that's trading for 60 times sales because it's been over 100 times sales in the past year, so that typically does not end well for investors. But if you compound your revenue at 100% year over year for multiple years, it takes that multiple down pretty quickly. That's part of what we're seeing is just they are executing on exactly what the market has been pricing in for quite a while. As the shares have pulled back over the past few months, maybe we are going to see a little bit of a slowdown, and then they went, You know what? No, we're going to accelerate that revenue growth. Hard to quibble with anything.

Lou said the biggest number that jumped out to me: its 150% jump in U.S. commercial revenue. Customers aren't growing that quickly, so that means that the customers they do have are spending more. That's impressive because it shows that they're not just testing it out and going, Nah, we're not seeing any value here. They're actually saying, You know what? We want more from you guys.

Tyler Crowe: I think it's fair to say that CEO Palantir Alex Karp is a bit of an acquired taste for investors. Some people absolutely love him, some people might find him a bit off-putting with bombastic language, sometimes a little bit more aggressive and combative than a lot of other CEOs that you see in the market. You see it in his shareholder letters. You see it on the conference call, and he did use that aggressive language a little bit when talking about the large language model developers like OpenAI and Anthropic.

But I think he did get at a core point that he was talking about, and something that I think companies are really going to be thinking about, and it could really determine a lot of what happens in this AI race lately. It's the building model agnostic AI tools, similar to what Palantir does, versus these models that OpenAI and Anthropic are doing that end up in some sense, building competing tools from their own customers after they've built a lot of their own data.

One of the questions I have is does he have a point, and does that really bode well for the future of Palantir where they can make this argument that says, Hey, do you not want OpenAI and Anthropic taking your data and building your own competitor while you feed them their data? Come to us. Is that a valid sales argument or is that just being defensive?

Travis Hoium: It's all of the above. It's their sales argument. He's talking his book, he's talking their business model, and he's trying to sell to customers and you see similar things from Satya Nadella at Microsoft. But the way that he's talking about this, I just want to quote from the shareholder letter. "The models have grown and thrived by essentially ingesting the entire written work product of our civilization and those models, as well as their creators now have their site set on global industry. We have been the beneficiary of the revolt that is underway against submission of this way of working." That is basically declaring war against Anthropic and OpenAI. That is what Karp is doing here, and it's fascinating to see these business models play out because everybody is trying to win this AI game. That's what we've got to watch. Who is actually going to get the customers, who's going to get the revenue, who's going to generate free cash flow? Palantir is making their case, and they're making a pretty good one.

Lou Whiteman: You can always tell the CEOs who are classics majors, can't you? Stuff like that. Look, one read on this is he's worried that those models can do what Palantir can do, and this is actually a sign of weakness. I don't know if that's the case. I think you can make the case either way that the frontier models strengthen Palantir, or they are a threat. The thing that strikes me, though, is we know Palantir valuation. We know what Anthropic hopes to get and what OpenAI. Can they all exist together? Is there a zero-sum game here or a less-than-whole game? I feel like at some point, something has to flinch, and Palantir does have the advantage, I guess, with their installed base.

Tyler Crowe: And to that point, too, Travis, you were talking Satya Nadella, talking about competing models and a lot of this. One of the things that he had mentioned in previous discussions, conference calls, whatever, is basically custom tailoring the type of model that you need and custom fit to what the actual particular task is. Where we're using these generic, most powerful models in the world that cost a ton of money to, I don't know, organize your calendar, isn't exactly like the best use of resources and stuff like that. It'll be interesting to see the resource allocation, and I think that might be where they all make sense because they can fit a certain resource allocation for a business. Maybe we're less expensive, but we don't take on the biggest tasks sort of thing. That's how this works in a world where everyone works in some way or another versus having only one winner in this open eye race. But speaking about OpenAI, we’re going to talk about one of the pick-and-shovel companies that’s doing spectacularly well. That's Caterpillar, after break.

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Tyler Crowe: Moving on to other companies that are reporting earnings recently and doing incredibly well, it was Caterpillar. Earlier today, Caterpillar posted expectation-smashing results this past quarter, and the stock is up about 5.6 on the news as a result. It was up almost 10% in early morning trading. There was a lot to like here. I was looking through it, earnings across all of its segments were up. It looks like everything's doing incredibly well. Was that all the driving force? What were some of the things I might have missed when I did my first class, guys?

Travis Hoium: I think the big thing here is that when you're spending $1 trillion on building out data centers, there's a lot of demand to go around. I don't know if Caterpillar is the second derivative of the AI trade or the third derivative, but it is definitely downstream of all that spending that's going on because that infrastructure is a lot of physical stuff being built, and that's what Caterpillar does. The big thing that it was construction equipment that was up 35% from a year ago, but power energy and resources also did well. The crazy thing is you can think about this all as one big trait because these are all related things. The fact that energy is doing so well is because AI is doing so well. I don't know what to take from this lob besides the fact that just all this is like a huge rising tide that's lifting all of Caterpillar's boats.

Lou Whiteman: I think that's it, let's talk about why because obviously you don't buy a new dirt mover for each data center. You don't like, for every one of these things, we're going to buy all new equipment. But it's a lot like what John Deere with the farmers. We tend to see spending go up when it's a good year on the farm because the farmers are flush with cash, it's when they can. Similarly, with all of this demand, all these orders, this is causing the customers of Caterpillar to feel confident enough to place orders, to invest in their business. I think that's why you see the strength in construction. It wasn't just in the power systems. It wasn't just one thing. This is just the net impact of all of this cash, all of this investment going into the sector that they serve. showing itself in confidence to order heavy equipment. They boosted their full-year guidance, and they had a record equipment backlog. The backlog is a CAT, always something to watch because, again, you get a lot of orders when things are good, and then you see how long it lasts. But assuming that we don't stop building data centers, this is, again, just filling the industry they serve with cash, and you are going to see companies invest in their businesses when they can.

Tyler Crowe: So something it seems like we're kind of dancing around here, and we all know it is that Caterpillar is a cyclical business. Mining is doing really well. Orders go up. But all the end markets are very cyclical, power, construction, all of these things. My question is, obviously, AI is a big part of that cycle. Also there's some other aspects as well. We were talking before the show the idea of deglobalization and critical mineral mining, where it's being more localized and not dominated on a global scale, where you might see a lot not typically redundant wouldn't normally happen in a globalized world, but you're going to have a little bit more like redundant supply of construction materials because everyone wants to mine their own stuff and stuff like that. I don't know how big that is, but it's certainly something to be playing the part here.

My question is, we know it's cyclical, but could this just be an elongated cycle? Because it seems like normally with Caterpillar, one segment's doing relatively well, where its other end markets are weaker, but right now we're in a point where all three segments are posting great results.

Lou Whiteman: Look, this is why investing is hard. We can see something that looks obvious, but good luck getting the timing right. Should we do a shout-out or maybe someone check in on Michael Burry this morning? Because I agree with everything he's been saying about how it's all overvalued. But two of his biggest shorts were Palantir and Caterpillar. The timing is everything. Caterpillar right now feels like a microcosm for the entire market. It's cyclical. It's up 100% in a year. All of the signs are saying yeah, and it keeps working anyway. It will until it won't, and that's what makes investing hard.

Travis Hoium: The word that comes to mind is super cycle, and this is just part of that super cycle. All of that money that's flowing from those giant Silicon Valley companies is flowing to companies like Caterpillar. The question is, when does it stop? Or when does it even slow down? That's something that I've been thinking a lot about is, as long as capex is growing for these data centers, as long as there's more demand for power, more demand for minerals, all of these things are going to do extremely well. But what happens when growth flatlines or heaven forbid falls? That's when paying 38 times earnings for a company like Caterpillar is going to be really rough for investors. But we're not seeing it yet.

Tyler Crowe: It's not the most recent example, but certainly I think we can all remember, like the 2010, China's economic development growth boom, seven pot eight 9% annually was sending companies, mining companies, Caterpillar, companies like this to soaring heights because of demand was just voracious. But the minute we started to see a slowing Chinese economy and the slowing of the construction cycle, I would assume, like, yeah, 15, 16 years ago was the last, like, real super cycle with a lot of this stuff. It'll be interesting to see if this deglobalization in AI trade becomes the next big supercycle for these particular markets. Coming up after the break, one company that didn't do quite as good on the earnings perspective that's Spotify.

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Tyler Crowe: The three companies that we're talking about here today, Spotify's earnings were definitely one of these things is not like the other results. The company reported earnings after the close yesterday, and as we're right now, shares are relatively flat, but they were down quite a bit in early morning trading. The market seems to be doing it a little bit of a favor here. Now, Spotify hit some significant user milestones, total daily average users and things like that were way up, and margin expansion was exceptionally good, but it did miss expectations for revenue and earnings per share. Travis, I know you followed this company pretty intimately. Was this just some quarterly blip, or is this a trend in decelerating revenue and earnings?

Travis Hoium: This is what happens when a company goes from growth mode to we're now a mature company. The expectations are different, and the question is going to be, what do investors expect from the company? And then what are the investors that are going to be excited about that? Spotify grew their total monthly users by 12% year over year. This is a company that has 777 million monthly active users. That is a massive number. They're also continue to grow their premium revenue, 15%, but this is not going to be a company that's going to grow 20-plus percent year over year, like it maybe was a handful of years ago. You're going to be more focused on things like margins and free cash flow. That's not necessarily as exciting.

That said, management thinks that they can continue to grow their compound annual growth rate in that mid-teens range and get to a 20% operating margin. That's a pretty darn good business, the question is, what are you going to pay for it, and that seems to be the battle for investors today is a little bit like Caterpillar. If this is going to be just a mature cash-generating business, what do you pay for it? Is 31 times earnings the right number? Maybe it is, but you're going to have to decide what do you expect as an investor? Are you growth investor or a value investor?

Lou Whiteman: I'm always amazed when they find more people that don't have the service that they can add that way. Good on them for that. But Travis, I think you have it exactly right, is that sometimes with stocks, the stock isn't the problem. The investor base is that this is a fine company, but it is more mature than it used to. It's unlikely to be the growth story it was. It may take time for the investor base to just switch out, and that's going to cause volatility. I think it is a free cash flow store, and I think it has a great story to tell. I think it's a really attractive income/growth hybrid investment from here, but it is going to be a different story than it was. I don't think you're going to see the growth-focused crowd saying “Wow” to these results. That doesn't mean it was a bad quarter, though.

Tyler Crowe: This sounds similar to the conversation we've been having here on some Motley Fool Live events around, like Netflix, as well as, who is the investor anymore? Because these growth stories that all of a sudden are transitioning to, we're still growing just not at these nosebleed level growth that we had been putting we're now profitable. We're throwing off quite a bit of cash, it changes the type of investor that gets involved in these sort of companies. I don't want to prefaces of saying like, Spotify is a bad company now, it's just a different company into a different phase of its life. When I look at it, it's a solid company. It's generating a lot of free cash flow. Revenue right now high single digits. Maybe you're going to get low double digits on a growth surge, maybe a pricing increase. It's still a very quality business. But is that a company that merits 32 times, 33 times earnings? That's the question here. On that daily user growth, part of me almost says, "Is there no more worlds left to conquer?" Yes, it's growing, but it's become the dominant market share. As to lose point, like, who isn't using this service at this point?

Lou Whiteman: Funny, I'm not, so Spotify, call me. But I get it thrown in with my phone service. I guess there are at least one more world to cover. But Tyler, I think you're exactly right. I will say, shout-out to Spotify, because I think there's a better case here than there is for some. I'm going to get nasty letters, but Starbucks and some of these companies. I just think good company, bad stock. I think this is still a stock that works because I think it is a hybrid growth. I think they do have some levers to pull, but, yeah, I think that's it. That probably two things can be true here. It's still a good investable stock, but the valuation might need adjustment from here.

Travis Hoium: Yeah, 30 times earnings isn't crazy for a company that can continue to grow in the mid-teens. But I think you're right. How do you grow the business from here, and it's going to be a balance of how do you price a product where you have basically saturated the market? You're playing this game of do we want more monthly active users, or do we want a higher price per user? Because there is some elasticity in that market. You have competition from products like YouTube.

I think what we've learned with Spotify over the last few years is they're not going to be the next Google, for example, we're just going to keep tacking on new product after new product, add YouTube, add Waymo. Their ad product stinks that basically didn't grow year over year. That’s not a huge driver of their growth. Their video, I don't think is what they thought it maybe could be. It's just a solid business. It's just the kind of service that I'm going to sign up for and pay for for the next decade. As my kids get older, they'll eventually graduate into buying their own accounts. That's a good business. It can be fine for investors at 30 times earnings. I don't think it's a steal. If they ever get to the point where it's so cheap that they decide that they're going to buy back a whole bunch of stock, it could be really interesting, but this is going to be a little bit more ho-hum for investors, and a lot of times, that's not going to get a lot of headlines for you.

Tyler Crowe: It'll be interesting to see how you're saying that mid-teens growth, it's definitely worth playing. But as we were saying, not quite there yet, but there are some levers to pull, maybe fixing around the margins, ads, maybe figure out video. These are new initiatives, and some things aren't always perfect execution all the time. There is a path there, but not quite in the cards yet. A last question before we get out of here, guys, of the three companies we talked about today, Palantir, Caterpillar, Spotify, I think, based on what I've heard, I've gotten a good idea, which of these three companies is most attractive to you right now?

Lou Whiteman: If I was to buy one today, it would probably be Spotify, but I don't know if I really want to jump into any of these three.

Travis Hoium: I agree. It's the one that I own. It's the one where I can actually wrap my head around the valuation, and it's not as cyclical. It's more that I am not really interested in buying Palantir or Caterpillar today.

Lou Whiteman: Just so we're not boring, if it's a long enough time horizon, I'll take CAT. 

Tyler Crowe: We've got them on record, everyone, so you can lambast them in emails and comments later, and we'll figure that out from there.

As always, people on the program may have interest in the stocks they talk about, and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. All personal finance content follows Motley Fool editorial standards, and it's not approved by advertisers. Advertisements are sponsored content and provided for informational purposes only. To see our full advertising disclosure, please check out our show notes. Thanks for producer Dan Boyd and the rest of The Motley Fool team for Lou, Travis, and myself, thanks for listening, and we'll chat again soon.