, /PRNewswire-HISPANIC PR WIRE/ -- Toyota anunció cambios en la plana ejecutiva de sus operaciones de fabricación, cadena de suministro y servicios financieros con el objetivo de ofrecer un mejor servicio a sus clientes, promover el crecimiento sostenido y reforzar su compromiso de fabricar en el mismo lugar donde vende.
Jubilaciones
Ellen Farrell, vicepresidenta del grupo y asesora ejecutiva de Toyota Financial Services (TFS), se jubilará en agosto. Durante más de 25 años, Farrell ha prestado asesoramiento jurídico que ha promovido y protegido los intereses de Toyota. Antes de su cargo actual, se desempeñó como directora jurídica, de cumplimiento normativo y administrativa de TFS, así como directora de respeto hacia las personas de TFS y Toyota Motor North America. Farrell tuvo una participación fundamental en la creación de la línea de negocio de marca propia de TFS, que impulsó el crecimiento de los servicios financieros. Sus contribuciones se extendieron mucho más allá del ámbito jurídico gracias a sus cargos como vicepresidenta de desarrollo sostenible y, posteriormente, directora de respeto hacia las personas.
Kerry Creech, vicepresidente de grupo de la Región 1 de TMNA y presidente de Toyota Motor Manufacturing Kentucky (TMMK), se jubilará en julio después de una carrera de 36 años en Toyota. Durante su mandato, Creech ostentó numerosos cargos de responsabilidad en los ámbitos de fabricación, calidad e ingeniería, llegando a dirigir TMMK y a supervisar un importante crecimiento operativo y una inversión considerable. Su liderazgo contribuyó a impulsar nuevas inversiones destinadas a apoyar iniciativas de electrificación y fabricación avanzada. Asimismo, realizó importantes contribuciones al desarrollo de la fuerza laboral y a la comunidad a través de iniciativas como la 4T Academy. En 1990, él inició su carrera como miembro del equipo de producción de sistemas de propulsión en TMMK.
Ascensos y nuevas funciones
Fabricación
Stephen Brennan, vicepresidente sénior de la Región 1, Operaciones de Fabricación y Operaciones Empresariales de Fabricación (MBO), será destinado a Toyota Motor Corporation (TMC) como jefe de producción del Área de Tecnología Avanzada. Brennan supervisará la División de Ingeniería de Producción Avanzada, la División de Ingeniería de Producción, la División de Equipamiento para la Movilidad, la División de Logística e Ingeniería de Información para la Producción y el Departamento de Transformación Digital de la Producción. Brennan estará subordinado a Takefumi Shiga, director de operaciones de TMC, director de producción y director del grupo de Ingeniería de Producción.
Kevin Voelkel, vicepresidente sénior de Operaciones de Fabricación, asumirá la supervisión de Fabricación de la Región 1 —TMMK Vehicle and Powertrain (vehículos y sistema de propulsión de TMMK) — y seguirá subordinado a Masahiro Seri, vicepresidente sénior y director de producción de Ingeniería de Producción y Fabricación.
Susann Kazunas, vicepresidenta del grupo y directora ejecutiva de ingeniería, será nombrada vicepresidenta del grupo de Operaciones Empresariales de Fabricación (MBO) e Ingeniería de Producción (PE). Kazunas seguirá desempeñando sus funciones como directora ejecutiva de ingeniería y asumirá además las de directora ejecutiva de seguridad. Ella mantendrá su subordinación a Masahiro Seri.
David Fernandes, vicepresidente de grupo de la Región 6 de Fabricación y vicepresidente sénior de Mazda Toyota Manufacturing (MTMUS), ha sido ascendido a vicepresidente de grupo de la Región 1 de Toyota Motor Manufacturing Kentucky (TMMK) y a presidente de TMMK, y estará subordinado a Kevin Voelkel, vicepresidente sénior de Operaciones de Fabricación.
Erik Skaggs, presidente de Toyota Motor Manufacturing Mississippi, ha sido nombrado vicepresidente de grupo de la Región 6 de Fabricación y vicepresidente sénior de Mazda Toyota Manufacturing. Él estará subordinado a Kevin Voelkel, vicepresidente sénior de Operaciones de Fabricación.
Aaron Foster, director general de Toyota Motor Manufacturing Mississippi (TMMMS), ha sido ascendido a presidente de TMMMS y estará subordinado a David Rosier, vicepresidente del grupo para Operaciones de Fabricación de la Región 5 y presidente de Toyota Motor Manufacturing West Virginia (TMMWV).
Carla Wright, vicepresidenta de fabricación de Toyota Motor Manufacturing Texas (TMMTX), ha sido nombrada vicepresidenta de Proyectos Especiales de Operaciones Empresariales de Fabricación (MBO) y estará subordinada a Susann Kazunas, vicepresidenta sénior de Ingeniería de Producción y Operaciones Empresariales de Fabricación.
Juan Francisco García, presidente de Toyota Motor Manufacturing Guanajuato (TMMGT), ha sido nombrado vicepresidente de fabricación de Toyota Motor Manufacturing Texas (TMMTX) y estará subordinado a Frank Voss, vicepresidente del grupo para Operaciones de Fabricación de la Región 4 y presidente de TMMTX.
Eliel Cole, presidente de Toyota Autobody Company (TABC), ha sido ascendido a presidente de Toyota Motor Manufacturing Guanajuato (TMMGT) y estará subordinado a Frank Voss, vicepresidente del grupo para Operaciones de Fabricación de la Región 4 y presidente de Toyota Motor Manufacturing Texas.
Zach Choate, director general de Ingeniería de Producción, ha sido adscrito al presidente de TABC y estará subordinado a Óscar Villarreal, presidente de Toyota Motor Manufacturing of Baja California (TMMBC) y presidente del consejo de administración de TABC.
Cadena de Suministro
Kevin Austin, vicepresidente del grupo responsable de Cadena de Suministro, asumirá la responsabilidad del área de Calidad, y Tom Trisdale, vicepresidente del grupo responsable de Calidad, estará subordinado a él. Austin seguirá al frente del departamento de Estrategia y Operaciones de Cadena de Suministro y estará subordinado a Chris Nielsen, vicepresidente ejecutivo de Cadena de Suministro, director de Cadena de Suministro y director de Calidad de TMNA.
Kensuke Morita, vicepresidente del grupo para Cadena de Suministro de Vehículos, asumirá la responsabilidad de Estrategia y Planificación y Gestión de Proyectos (PPM), Gestión de la Oferta y la Demanda (DSM) y Transformación Tecnológica. Jamese Olayiwola, vicepresidente de Estrategia y Gestión de Proyectos y Programas (PPM), y Michael Schad, vicepresidente de DSM y Transformación Tecnológica, estarán subordinados a él. Morita seguirá subordinado a Kevin Austin, vicepresidente del grupo para Cadena de Suministro.
Todos los cambios entrarán en vigor el 13 de julio de 2026, salvo que se indique otra fecha.
Acerca de Toyota
Toyota (NYSE:TM) ha sido parte del tejido cultural de EE. UU. por casi 70 años y está comprometida con el avance de la movilidad sostenible de nueva generación a través de nuestras marcas Toyota y Lexus, además de nuestros casi 1,500 concesionarios.
Toyota emplea directamente a casi 48,000 personas en Estados Unidos, quienes han contribuido al diseño, la ingeniería y el ensamblaje de más de 35 millones de automóviles y camionetas en nuestras 11 plantas de fabricación. En la primavera de 2025, la planta de Toyota en Carolina del Norte comenzará a fabricar baterías para vehículos eléctricos. Con más vehículos eléctricos en la carretera que cualquier otro fabricante de automóviles, Toyota ofrece actualmente 32 opciones eléctricas.
Mediante su iniciativa Driving Possibilities, la Toyota USA Foundation se ha comprometido a crear programas educativos innovadores dentro de las comunidades históricamente desfavorecidas cercanas a los centros operativos de la empresa en EE. UU., y en colaboración con ellas.
Para obtener más información sobre Toyota, visite www.ToyotaNewsroom.com.
A lawsuit filed in California claims the automaker's philanthropic arm stole technology intended to help poor farmers, but it is not clear to what end.
Civinity, a group providing building maintenance, administration and engineering solutions, has completed the first stage of its vehicle fleet renewal tender and is launching one of the largest projects of its kind in the services sector. During the first stage, the Group will acquire 150 new commercial vehicles of various specifications and capabilities from the Toyota Proace family in Lithuania and Latvia.
The first vehicles are expected to reach operational teams in September–October. The value of the first stage will amount to up to EUR 2.7 million. The total number of vehicles planned for acquisition is 350, with their integration into the Group’s more sustainable and significantly lower-emission fleet scheduled over the next three years.
The tender was won by Autotoja in Lithuania and WESS Motors Toyota in Latvia. In total, five vehicle dealerships submitted proposals. The first-stage order will be financed through leasing with the support of an external financing partner. Subsequent stages will be implemented with the same primary vehicle supplier in accordance with the schedule established by the Civinity Group.
Five vehicle dealerships submitted proposals for the tender. The evaluation process considered compliance with the tender requirements, vehicle quality and reliability standards, warranty periods, and the coverage of servicing networks across cities in Lithuania and Latvia.
A broad network of authorised dealerships and service centres was one of the key practical criteria, as Civinity’s technical teams operate in six cities and vehicle downtime directly affects service delivery to clients.
“We are pleased that the tender we announced attracted considerable interest from representatives of some of the strongest manufacturers in the commercial vehicle segment. In our business, a vehicle fleet is not merely a supporting tool. It is part of the service itself, determining the mobility of our teams, response times and day-to-day efficiency and, in Civinity’s case, it is also another step towards the implementation of our Smart Green City vision,” says Deividas Jacka, Chairman of the Board of Civinity.
The project is being implemented at a time when corporate vehicle fleets are becoming one of the key drivers of growth in the electric vehicle market. In Lithuania, companies already account for the majority of new electric vehicle purchases, while the number of electric vehicle leasing agreements concluded by legal entities has increased rapidly in recent years. This demonstrates that fleet renewal is increasingly driven not by image considerations, but by total cost of ownership, operational efficiency and regulatory developments.
Of the 150 vehicles included in the first stage, 89 will be allocated to Civinity companies operating in Lithuania and 61 to companies in Latvia. The vehicles will be used by building administration, technical maintenance and engineering teams operating in Vilnius, Kaunas, Klaipėda, Šiauliai, Panevėžys, Palanga, Kretinga, Riga, Jūrmala, Jelgava and other locations.
The new order will include Toyota Proace City, Proace Medium and Proace Max vehicles, the majority of which will be electric. A significant part of the renewal programme will focus on lower-emission transport; however, a small number of larger vans (seven vehicles) will be equipped with internal combustion engines where required due to longer travel distances, more intensive utilisation or specific technical requirements.
Alongside the fleet renewal programme, Civinity also plans to expand its charging infrastructure. Charging facilities are expected to be developed at the Group’s offices and technical premises, while agreements will be concluded with public charging network operators for day-to-day use.
Particular attention will also be paid to driver training. Employees will be introduced to the specific characteristics of electric vehicle operation, charging practices, principles of efficient use and seasonal operating considerations.
The vehicles will be centrally acquired by the Group company Civinity Rent. The company will be responsible for financing, insurance, leasing to Group companies and vehicle replacement upon completion of the designated usage period.
The fleet renewal programme will be included in the Group’s ESG reporting. Civinity intends to assess the project’s impact using greenhouse gas emissions accounting methodologies and to use the collected data when planning subsequent stages. The Group currently operates a fleet of nearly 400 vehicles which, as previously announced by Civinity, is planned to be optimised and renewed in several stages, with up to 350 vehicles in Lithuania and Latvia to be replaced by 2028.
The vehicle fleet is one of the areas where environmental impact can be reduced most rapidly. In building maintenance and administration activities, mobility is an essential component of service delivery: teams travel to client sites every day, respond to incidents, conduct inspections and perform engineering works. As a result, transport solutions have a direct impact on service quality, while the choice of green energy affects environmental performance.
“Our approach to sustainability is very straightforward: if we want to create a Smart Green City, we must start with our own everyday practices. Mobility is one of the areas where change becomes visible very quickly. This is not greenwashing; it is a practical step that helps reduce emissions and noise in residential areas where our teams operate, while supporting a gradual transition towards a lower-emission operating model,” says D. Jacka.
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Novel F18 PET imaging agent designed to identify inflammation.
Program advancing toward Phase 2 patient studies
Ottawa, Ontario--(Newsfile Corp. - June 22, 2026) - Yellowbird Diagnostics Inc. today announced the successful completion of dosing and imaging in its first-in-human Phase 1 clinical trial of NeuCaVis™, a novel F18 PET radiotracer designed to image inflammation.
Led by Dr. Benjamin Chow, the study enrolled twelve healthy volunteers, including six men and six women, at the Ottawa Heart Institute. The trial is evaluating the safety, tolerability, biodistribution, and dosimetry of NeuCaVis™, while generating the first clinical data in humans.
"Completing dosing in all twelve participants marks an important milestone for Yellowbird and validates our ability to execute a first-in-human clinical program. We thank the volunteers, investigators, and study staff for their contributions and look forward to sharing additional results as data analysis progresses," said Nick Calvert, Chief Executive Officer of Yellowbird Diagnostics.
"Successful completion of this study represents a significant step forward in the development of NeuCaVis™ and our mission to transform inflammation imaging. The preliminary images and interim data have exceeded our expectations and reinforce the promise of NeuCaVis™ as a novel approach to imaging inflammation. We are now focused on advancing the program into patient studies and expanding the clinical applications of fructose-based inflammation imaging," said Adam Shuhendler, Founder and Chief Scientific Officer of Yellowbird Diagnostics.
Data analysis is underway, with additional results expected in the coming quarter.
About Yellowbird Diagnostics
Yellowbird Diagnostics is an Ottawa-based biotechnology company developing next-generation metabolic imaging technologies to transform the diagnosis and management of inflammatory diseases.
NeuCaVis™, the company's lead program, is a proprietary F18-labeled PET imaging agent designed to visualize fructose metabolism, a pathway increasingly recognized as a hallmark of activated inflammatory cells. Unlike traditional imaging approaches, NeuCaVis™ is designed to enhance visualization of inflammatory processes in tissues where background signal can limit diagnostic performance.
For more information: yellowbirddx.com
Forward-Looking Statements
This press release contains forward-looking statements, including statements regarding the anticipated development, clinical evaluation, regulatory advancement, and potential applications of NeuCaVis™. Forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. Yellowbird Diagnostics undertakes no obligation to update these statements except as required by applicable law.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/302291
Source: Yellowbird Diagnostics
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The Warner Bros. Water Tower is pictured at Warner Bros. Studios in Burbank, California, U.S. February 27, 2026. REUTERS/Daniel Cole/File Photo Purchase Licensing Rights, opens new tab
CompaniesLOS ANGELES, June 17 (Reuters) - Chinese regulators have cleared the $110 billion merger between Paramount Skydance and Warner Bros Discovery, according to a source familiar with the decision.
The antitrust ruling comes on the heels of similar approvals from the U.S. Department of Justice, and a number of other countries, including Australia, Germany, France and Saudi Arabia. China, where both Paramount and Warner Bros Discovery release films, also needed to sign off on the deal.
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The European Union has yet to weigh in on the combination.
China has been a diminishing source of revenue for Hollywood, as its domestic movie industry matures. Some films, like Warner Bros's 2023 film "Meg 2: The Trench," grossed $53.3 million in China during its opening weekend. However, Paramount's 2022 blockbuster "Top Gun: Maverick," was never released - a casualty of heightened tensions between the U.S. and China.
News of the approval was first reported by Semafor.
Editing by Franklin Paul, Sanjeev Miglani and Christian Schmollinger
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Paramount Skydance shares are trending higher. Why are PSKY shares climbing? What Is Driving Paramount Skydance’s Merger Approval?Paramount is still staring at political pushback risk even after DOJ clearance, with Sen. Bernie Sanders calling the merger "not acceptable" and arguing it would put David Ellison in a position to direct both CBS and CNN. That headline risk can matter for PSKY because it can amplify scrutiny from other regulators and potential litigation even when federal antitrust review is complete, keeping the stock sensitive around the $10 level.
Critical Price Levels To Watch For PSKYThursday's bounce is happening within a weaker longer-term structure: PSKY is trading 3.5% below its 20-day SMA, 5.7% below its 50-day SMA, and 22.6% below its 200-day SMA, with the 20-day sitting under the 50-day and the 50-day under the 200-day—classic bearish alignment. That backdrop helps explain why good headline news can still translate into choppy, step-by-step upside rather than a clean trend reversal.
Momentum also looks like it's cooling rather than accelerating: MACD is below its signal line and the histogram is negative, which points to fading upside pressure unless buyers can rebuild momentum. In plain terms, MACD compares faster and slower trend signals, and being below the signal line usually means the recent push higher is losing force.
From a levels perspective, the stock is trying to hold a key psychological area near $10 while it works back toward overhead supply.
Key Resistance: $11.50 — a nearby ceiling where rebounds can stall, and a level that sits above the stock's short- and medium-term moving averages Key Support: $10.00 — a round-number area close to current trading where buyers have recently been willing to defend dips How Paramount Skydance Operates in Media and StreamingParamount Skydance operates across TV media, filmed entertainment, and direct-to-consumer streaming, with assets spanning CBS and owned affiliates plus cable brands like Nickelodeon, MTV, BET, and VH1. Its studio footprint includes Paramount Pictures, while streaming includes Paramount+, Pluto TV, and BET+.
That mix matters for the merger narrative because regulators are explicitly evaluating competitive impact across streaming, linear television, and film distribution—exactly the lanes where Paramount's businesses overlap with Warner's portfolio. Under the announced terms, Paramount would pay $31 per share for WBD and the $110 billion enterprise value implies a 7.5x multiple on fully synergized 2026 EBITDA.
PSKY Stock Price Movement on ThursdayPSKY Stock Price Activity: Paramount Skydance shares were up 0.60% at $10.04 at the time of publication on Thursday, according to Benzinga Pro data.
Image: Shutterstock
Market News and Data brought to you by Benzinga APIs
The media and entertainment sector is undergoing a terminal consolidation phase, completely altering how capital flows through the sector. Investors chasing unverified buyout rumors learned a harsh lesson when speculative chatter surrounding Lionsgate Studios Corp. NYSE: LION and Netflix, Inc. NASDAQ: NFLX collapsed overnight. Retail traders piled in on hopes of a premium buyout, only to be crushed by a swift denial from Netflix management. Speculative intellectual property hunting is a wealth hazard. Smart money is deploying capital in entirely different ways.
Trillion-dollar technology conglomerates exercise strict discipline, prioritizing margin defense over legacy studio bailouts. The unconditional Department of Justice clearance of the $110.9 billion Paramount Skydance NASDAQ: PSKY and Warner Bros. Discovery, Inc. NASDAQ: WBD mega-merger, alongside the $22 billion Fox Corporation NASDAQ: FOXA buyout of Roku, Inc. NASDAQ: ROKU, establishes a new paradigm. The mergers-and-acquisitions playbook has permanently pivoted from content hoarding to distribution control and hard arbitrage.
Get Lionsgate Studios alerts:
Debt Traps and Dead Scripts: The Studio IllusionLionsgate Studios Today
LION
Lionsgate Studios
$15.22 +0.01 (+0.07%)
As of 12:33 PM Eastern
52-Week Range$5.55▼
$16.70Price Target$15.37
When options volume for Lionsgate Studios spiked to over 21,646 contracts on June 16, heavily concentrated in July 2026 $16 and $18 speculative calls, the trap was set. The swift denial instantly crushed this premium. This serves as a textbook case of retail behavior generating highly monetizable shorting opportunities for institutional desks.
Let's unpack why the buyout rumor never made fundamental sense. Acquiring intellectual property sounds strategic until you examine the underlying balance sheets. Recent 10-K filings reveal Lionsgate Studios faces an estimated $1.96 billion in debt service obligations over the next 12 months. In an environment where capital costs remain elevated, acquiring an overleveraged balance sheet severely dilutes free cash flow margins for any potential buyer.
Lionsgate Studios carries a massive forward price-to-earnings ratio of over 88, suggesting the current valuation is heavily skewed toward an artificial acquisition premium rather than fundamental earnings growth. Last quarter, Lionsgate Studios missed earnings-per-share estimates, reporting a 7-cent loss versus an expected 2-cent loss.
This lack of fundamental profitability makes the $1.96 billion debt wall even more precarious. Netflix operates with a highly disciplined capital allocation framework. Netflix refuses to function as a white knight for struggling studios just to acquire legacy film franchises.
Netflix simply does not need expensive, debt-laden acquisitions to drive top-line revenue. Netflix surpassed 250 million monthly active users on its ad-supported tier in May 2026. Coupled with aggressive live sports integration, organic average revenue per user is expanding rapidly. Net margins are robust at 28.52%. Sustainable organic growth negates the strategic necessity for margin-dilutive acquisitions.
Institutional short sellers understood this reality. Financial Industry Regulatory Authority data indicates that short interest in Lionsgate Studios surged by more than 191% over the trailing 12 months, representing roughly 9.4% of the float. Smart money bet against the standalone viability of Lionsgate Studios long before retail investors chased the intraday spike.
Digital Tollbooths: Owning the Living Room Operating SystemThe fundamental value in the entertainment sector has migrated from the content itself to the hardware and software that delivers it. Content production is highly commoditized and incredibly capital-intensive. Distribution infrastructure operates as a high-margin digital tollbooth. Fox Corporation recognized this structural dynamic and formalized an agreement to acquire Roku for $22 billion.
FOX Today
$48.66 -0.73 (-1.47%)
As of 12:52 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$48.55▼
$76.39Dividend Yield1.15%
P/E Ratio12.85
Price Target$74.36
This transaction is a masterclass in modern media strategy. Fox Corporation secures the connected television home screen and the invaluable first-party viewing data of over 100 million households. First-party viewing data allows Roku to charge premium rates for targeted programmatic advertising.
By controlling the interface where viewers select streaming applications, Roku extracts a toll from every media transaction on the television screen. Fox Corporation recognized that integrating this targeted advertising engine with its live broadcast network creates a monetization loop that traditional content studios simply cannot replicate.
Owning the living room operating system yields higher structural leverage than owning a mid-tier movie catalog. For investors, the optimal strategy is to accumulate equities that control these digital gateways.
Infrastructure providers operating ad-insertion software, smart television operating systems, and programmatic video ecosystems present compelling fundamentals. These infrastructure providers operate with high-margin, software-as-a-service models.
Roku and similar infrastructure providers remain completely immune to the heavy capital expenditures required to produce blockbuster films or prestige television. When legacy studios realize they cannot survive without localized distribution and targeted ad-insertion capabilities, these infrastructure stocks become the next wave of highly probable acquisition targets.
Spin-Off Scripts: Trading the Sum of the Media PartsGenerating absolute returns in the current volatile environment demands rotating out of mid-cap studio rumors and deploying capital into mathematical spreads. The Paramount Skydance and Warner Bros. Discovery transaction offers a defined, hard catalyst. Warner Bros. Discovery currently trades near $27, down from a finalized $31 all-cash buyout price. That represents a roughly 14 % merger arbitrage spread.
Warner Bros. Discovery Today
WBD
Warner Bros. Discovery
$26.77 -0.18 (-0.66%)
As of 12:52 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$10.75▼
$30.00Price Target$27.04
Historically, media mega-mergers faced intense regulatory scrutiny, keeping arbitrage spreads wide as investors priced in the risk of deal collapse. With the Department of Justice Antitrust Division granting unconditional clearance to the $110.9 billion transaction, the regulatory risk profile is exceptionally asymmetric.
For retail and institutional investors, merger arbitrage involves purchasing Warner Bros. Discovery shares at a discount to the open market price and holding them until the acquiring company finalizes the transaction, automatically converting those shares into the $31 cash payout. Institutional capital will increasingly rotate out of volatile equities and into these high-probability, event-driven spreads to capture yield as the Paramount Skydance deal approaches its closing date.
Beyond outright acquisitions, persistent margin compression across the interactive entertainment space is forcing major corporate restructuring. Microsoft Corporation NASDAQ: MSFT is facing widespread speculation regarding the restructuring of its struggling gaming unit. Internal options reportedly include spinning off the Xbox division into a wholly owned subsidiary or an independent venture to mitigate the capital drain.
This highlights a broader structural shift toward capital efficiency. Buying Microsoft Corporation purely for a minor gaming restructuring offers diluted returns. The actionable trade involves waiting for definitive SEC S-1 filings or spin-off authorizations, then acquiring the newly separated, pure-play equity. Standalone entities unburdened by parent-company overhead typically experience immediate repricing of their sum-of-the-parts valuation. This dynamic consistently attracts aggressive institutional accumulation.
Final Cut: Directing Capital Toward Media GatewaysThe era of throwing capital at any studio with a recognizable film franchise is over. Media consolidation is entering its endgame, rewarding investors who prioritize structural leverage and definitive catalysts over unverified chatter.
Selling into rumor-driven liquidity vacuums capitalizes on retail behavior while maintaining strict institutional risk management. Capital deployment requires formalized term sheets rather than reacting to sector-wide fear of missing out. The swift 5% after-hours correction in Lionsgate Studios shares following Netflix's denial proves that legacy technology companies will not overpay for content.
Investors may want to evaluate media-sector exposure, rotating away from speculative intellectual property holders facing massive debt maturities. Accumulating connected television infrastructure companies or capturing the yield in cleared merger spreads offers a highly calculated approach to navigating the media industry's structural transformation.
Should You Invest $1,000 in Lionsgate Studios Right Now?Before you consider Lionsgate Studios, you'll want to hear this.
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The AI boom is creating opportunities across semiconductors, cloud computing, enterprise software, infrastructure, cybersecurity, and automation.
Inside this report, you’ll find 10 companies positioned to benefit as artificial intelligence moves from hype to real-world deployment and becomes a core growth driver for corporate America.
Paramount Skydance’s $111 billion takeover of Warner Bros. Discovery could lead to devastating bloodshed for Hollywood’s economy, according to a new report from Los Angeles County.
The merger between the two legacy studios puts about 2,500 jobs in the county and 6,000 globally at potential risk, the County Department of Economic Opportunity calculated.
Corporate, tech and real estate jobs are potentially in jeopardy given duplicative roles across the two companies. The combined studios are under pressure to deal with an “unusually high” $82 billion debt burden, and $6 billion in savings are eyed by consolidating roles and functions.
The Warner Bros. Water Tower is pictured at Warner Bros. Studios in Burbank. REUTERS
Paramount has acquired Warner Bros. NurPhoto via Getty Images Much of that will heavily impact Los Angeles County, the report said.
“The findings reinforce what workers, employers, and small businesses have been telling us for years: our entertainment economy remains in a fragile recovery period,” said department director Kelly LoBianco.
To make things worse, the new company may not shoot many films in the area, which would provide some economic boost. Of the 19 films that were scheduled to release last year from the two studios, only one was primarily based in California.
“For the regional economy, one can take seriously the optimistic case that the combined company could substantially increase its theatrical and television output,” said Adam Fowler, an economist at CVL Economics.
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“Given the trajectory of local production in recent years, Los Angeles is not well positioned today to capture much of that hypothetical increase.”
The report recommended the county reach out to the new company for commitments to local job growth and support and incentivize more local Hollywood production through tax credits or easier permitting.
Hollywood has been battered in recent years. David Buchan for California Post The numbers come as California’s iconic film industry has already been battered over the past six years by the COVID-19 pandemic, the Hollywood labor strikes, and the January 2025 wildfires.
Federal antitrust regulators this month cleared the blockbuster media merger without demanding a single concession, despite some controversy surrounding the deal. But a group of states, including California and New York, are preparing a lawsuit to potentially block it.
Meanwhile, the Golden State has been trying to make moves to lure Hollywood back to its former glory. Gov. Gavin Newsom signed a bill last year doubling California’s film and TV tax credit program, and in Los Angeles, the struggling entertainment industry has been a hot topic in the mayoral race.
A spokesperson for Paramount told The Post that the merger will be for the benefit of the city and the state, as legacy studios navigate the dominance of streaming platforms.
“A combined Paramount-WBD will have the scale and resources needed to compete more effectively in a rapidly evolving global media marketplace and invest in content, technology, and jobs,” the company said.
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Three Democratic senators have urged the Federal Communications Commission (FCC) to put the Paramount-Warner Bros. Discovery merger on pause over concerns about foreign investors controlling what would be one of the largest media companies in the United States.
In a joint letter to FCC Chairman Brendan Carr, senators Cory Booker, D- N.J.; Adam Schiff, D-Calif.; and Elizabeth Warren, D-Mass., demanded he “must foreclose any attempt by Paramount to close this transaction” before an adequate review of the involved foreign investors is completed.
The lawmakers said the FCC must conduct this review to evaluate possible “national security threats posed by foreign government investment” in the $110 billion entity. If approved, the merger would bring CNN and CBS News under one corporate owner, further consolidating the news media landscape.
Paramount, led by CEO David Ellison, acknowledged in an April financial disclosure cited by the senators that foreign ownership in the new corporation will rise to “approximately 49.5 percent.” In that document, Paramount also said that all voting rights will be “controlled by the Ellison family through U.S. entities.”
Federal Communications Commission (FCC) Chair Brendan Carr speaks during the U.S. Chamber of Commerce 2025 Global Aerospace Summit in Washington, D.C., U.S., September 9, 2025. REUTERS The document revealed that Saudi Arabia’s public investment fund and various entities based in the United Arab Emirates and Qatar would be equity holders.
Paramount told the FCC in April that this arrangement would not present “any national security, law enforcement, or foreign or trade policy concerns.”
The senators want a more rigorous check of what this level of foreign ownership would mean, telling Carr in their letter that he should not take the Ellison family’s statements “at face value.”
The Paramount water tower is shown on the Paramount studio lot in Hollywood, Los Angeles, California, U.S., January 13, 2026. REUTERS They argued that the FCC should reject Paramount’s petition for preemptive approval. Under Section 310 of the 1934 Communications Act, foreign individuals, companies and governments are generally prohibited from owning more than 25% of a U.S.-based firm that has an FCC-issued broadcast license.
Booker, Schiff and Warren gave Carr a July 1 deadline to notify Paramount that the deal cannot close until the foreign investment review is completed.
The FCC’s pending approval is the largest regulatory hurdle in the way of the merger. The Department of Justice signaled last week it would not challenge Paramount’s bid to acquire Warner Bros.
Senator Elizabeth Warren (D-MA) speaks at a press conference with Senate Minority Leader Chuck Schumer (D-NY) and Senator Patty Murray (D-WA) on Democrat’s plan to lower the cost of childcare, at the U.S. Capitol in Washington, DC on June 17, 2026. Nathan Posner/Shutterstock The DOJ’s antitrust division concluded after an eight-month review that “the transaction is not likely to result in harm to competition or American consumers” with regard to on-demand streaming, linear television and studio development and the production and distribution of films.
Warren criticized this decision by the DOJ and urged state attorneys general to continue fighting the transaction. California Attorney General Rob Bonta was already leading a coalition of states in preparing a lawsuit to block Paramount from adding Warner Bros. to its growing portfolio.
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More than 5,000 filmmakers and actors working in Hollywood signed an open letter in April furiously demanding that the merger be stopped. They argued that it would stifle competition and reduce job opportunities.
“Our industry is already under severe strain, in large part due to prior waves of consolidation. We have witnessed a steep decline in the number of films produced and released,” according to the petition. “We are deeply concerned by indications of support for this merger that prioritize the interests of a small group of powerful stakeholders over the broader public good.”
Key Takeaways Celanese partners with Siegwerk to boost sustainable solutions in the printing ink value chain.Celanese's bio-based ethyl acetate has 50% renewable content and supports ink formulations.The partnership aims to reduce fossil dependence and advance circular, low-carbon packaging. Celanese Corporation (CE - Free Report) has partnered with Siegwerk, a leading provider of printing inks and coatings for packaging applications and labels, to increase the supply of sustainable solutions in the printing ink value chain.The collaboration uses Celanese’s bio-based ethyl acetate, which contains 50% renewable content. By replacing a portion of fossil-derived raw materials, the partnership will work toward reducing environmental impact while maintaining the performance standards.
Siegwerk is incorporating the bio-based ethyl acetate into its existing ink formulations as a drop-in solution to support its SustainUP program, a key component of its HorizonNOW 2030 sustainability strategy that aims to increase its use of renewable feedstocks in manufacturing processes.
The partnership advances circular solutions in a practical and scalable way. The innovation will reduce dependence on fossils and ensure significant environmental benefits while reinforcing the critical role of value-chain collaboration. Both companies are supporting the industry's transition toward a circular and low-carbon future.
CE has lost 4.5% over the past year against the industry’s 8.7% growth.
Image Source: Zacks Investment Research
CE’s Zacks Rank & Key PicksCE currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Basic Materials space are Albemarle Corporation (ALB - Free Report) , Dow Inc. (DOW - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .
While ALB and DOW sport a Zacks Rank #1 (Strong Buy) each at present, ASM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ALB’s 2026 earnings is pinned at $12.39 per share, indicating a 1,668.35% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and missed once, with an average surprise of 74.5%. ALB’s shares have jumped 179.6% over the past year.
The Zacks Consensus Estimate for DOW’s 2026 earnings is pegged at $2.61 per share, indicating a rise of 377.66% year over year. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. DOW’sshares have gained 15.7% over the past year.
The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 39 cents per share, indicating a 34.48% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 125%.
NetApp (NTAP - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this data storage company have returned +30.1% over the past month versus the Zacks S&P 500 composite's +0.3% change. The Zacks Computer- Storage Devices industry, to which NetApp belongs, has gained 39.4% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For the current quarter, NetApp is expected to post earnings of $2.11 per share, indicating a change of +36.1% from the year-ago quarter. The Zacks Consensus Estimate has changed +10.5% over the last 30 days.
For the current fiscal year, the consensus earnings estimate of $8.88 points to a change of +9.2% from the prior year. Over the last 30 days, this estimate has changed +0.3%.
For the next fiscal year, the consensus earnings estimate of $9.68 indicates a change of +9.1% from what NetApp is expected to report a year ago. Over the past month, the estimate has changed +1.6%.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for NetApp.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of NetApp, the consensus sales estimate of $1.83 billion for the current quarter points to a year-over-year change of +17.4%. The $7.48 billion and $7.87 billion estimates for the current and next fiscal years indicate changes of +8.1% and +5.1%, respectively.
Last Reported Results and Surprise HistoryNetApp reported revenues of $1.95 billion in the last reported quarter, representing a year-over-year change of +12.5%. EPS of $2.43 for the same period compares with $1.93 a year ago.
Compared to the Zacks Consensus Estimate of $1.86 billion, the reported revenues represent a surprise of +4.51%. The EPS surprise was +7.05%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
NetApp is graded D on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about NetApp. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Key Takeaways NetApp delivered record fiscal 2026 all-flash revenues of $4.2B, up 11% year over year.NTAP recorded about 500 AI and data prep wins in Q4, exceeding 1,100 for fiscal 2026.NetApp expects higher enterprise AI activity in fiscal 2027 and guided revenues of $7.325B-$7.575B. NetApp, Inc. (NTAP - Free Report) is benefiting from the growing adoption of all-flash storage as enterprises modernize their infrastructure and expand AI deployments. The company delivered record all-flash performance for fiscal 2026, with all-flash revenue reaching $4.2 billion, an increase of 11% year over year. Fourth-quarter all-flash revenue was $1.2 billion, up 18% from the prior-year quarter, reflecting strong customer demand for high-performance storage solutions.
Management attributed this momentum to broad adoption across public cloud, all-flash and Keystone offerings as customers continue to modernize infrastructure and scale AI workloads.
AI adoption has emerged as a major driver of all-flash demand. NetApp stated that enterprises are investing in high-performance flash, capacity flash and block storage environments to ensure GPUs remain fully utilized by providing continuous access to large volumes of data. The company noted that approximately 500 AI and data preparation wins were recorded in the fourth quarter alone, bringing the fiscal 2026 total to more than 1,100. Management added that all elements of its flash portfolio performed strongly in enterprise AI deployments, while hybrid flash also gained traction in less demanding AI environments.
NetApp is strengthening its all-flash portfolio through new AI-focused innovations. In fiscal 2026, it introduced AFX and the AI Data Engine, both of which management said are seeing encouraging early customer and partner momentum. The company also enhanced the performance and capabilities of its all-flash arrays and expanded its converged AI solutions to simplify AI infrastructure, eliminate data silos and accelerate data pipelines. Early AFX deployments have secured wins in Neo cloud, financial services, hedge funds and life sciences, while AI Data Engine is helping customers organize large volumes of unstructured data for AI projects.
The company believes cyber resilience is another differentiator for its all-flash offerings. A European aerospace customer selected NetApp’s all-flash arrays in a competitive greenfield deployment, citing their high performance, ransomware protection, cyber resilience capabilities and seamless partner ecosystem integration. NetApp expects enterprise AI activity in fiscal 2027 to be higher compared with fiscal 2026 and has guided revenue in the range of $7.325 billion to $7.575 billion.
Taking a Look at NTAP’s CompetitorsSeagate Technology Holdings plc (STX - Free Report) is well poised to gain from AI-led storage demand, a robust technology roadmap anchored in Mozaic and HAMR and disciplined execution focused on converting demand into profitable growth and long-term value creation. Cloud drives most data center revenue, with Mozaic shipments reaching 75% of top cloud customers, and full qualification expected in the ongoing quarter. It expects stronger FCF throughout 2026, driven by steady demand, efficiency gains and disciplined spending. Management raised its long-term outlook, now expecting at least 20% annual revenue growth over the next few years, driven by strong cloud demand and continued hyperscaler investments in AI infrastructure, with the March quarter marking the 10th straight quarter of cloud-led revenue growth. Fiscal 2026 capex is expected to stay within 4-6% of sales.
Western Digital Corporation (WDC - Free Report) is gaining from strength across end markets, riding on AI-led storage needs and multi-year agreements extending through 2028-29. Cloud end market derives a lion’s share of its sales, fueled by strong demand for high-capacity nearline drives and favorable pricing. Higher-capacity drives and solid UltraSMR uptake that improved customer TCO are aiding margins, while strong operating leverage, lower interest costs and tax efficiency are fueling EPS growth. The company is advancing areal density and boosting performance with high-bandwidth drives. It strengthened the balance sheet by selling 5.8 million SanDisk shares, cutting debt by $3.1 billion, leaving $1.6 billion in convertible debt and ending with a $450 million net cash position. Western Digital expects fiscal fourth-quarter revenue of $3.65B, up 40% year over year at the midpoint.
NTAP Price Performance, Valuation & EstimatesShares of NetApp have gained 34.2% in the past month against the Computer- Storage Devices industry’s growth of 54%.
Image Source: Zacks Investment Research
Regarding the price/book ratio, NTAP is trading at 23.16, lower than the sector’s multiple of 23.56.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for NTAP’s earnings for fiscal 2027 has been revised upwards over the past 60 days.
Image Source: Zacks Investment Research
NTAP currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Partnership delivers a combination of intelligent data infrastructure with deep cloud and AI expertise to modernize operations and improve performance across hybrid environments
, /PRNewswire/ - CGI (TSX: GIB.A) (NYSE: GIB) and NetApp (NASDAQ: NTAP), the Intelligent Data Infrastructure company, today announced that NetApp Keystone will power CGI's block storage solutions within its shared services platform. This expansion of the companies' global alliance partnership, further strengthens their relationship and reaffirms a shared commitment to delivering measurable outcomes for clients worldwide.
Together, CGI and NetApp will help organizations modernize IT infrastructure, improve data management, and advance artificial intelligence (AI) initiatives across private, public, and hybrid cloud environments. By combining the power of the NetApp platform to help customers build intelligent data infrastructure supported by scalable storage capabilities with CGI's deep expertise in digital transformation, cloud, AI, and managed services, clients can strengthen operational efficiency, enhance cybersecurity, and accelerate innovation – enabling them to more effectively translate technology investment into business outcomes.
With NetApp Keystone, a flexible and simple subscription-based service that adapts to changing business needs, customers can accelerate critical block workloads with industry-leading performance, intelligent data management, and high availability across data centers and cloud environments, all delivered on storage with built-in security that provides real-time threat detection, protection and recovery.
"The expansion of our partnership with NetApp reflects a strong commitment on both sides to drive meaningful outcomes for our clients," said Virginia Williams, Senior Vice-President and Business Unit Leader, U.S. Northwest Operations at CGI. "The technology, expertise and innovation offered by this powerful alliance will continue to help clients modernize their IT environments, become more data-driven and prepare for AI at scale."
This next phase of the alliance reflects a shared commitment to broadening and deepening the relationship, with CGI and NetApp working closely together to design, deliver, and operate best-of-breed solutions that support clients' evolving digital needs. CGI will deliver services on behalf of NetApp, while NetApp will partner with CGI to deliver enterprise-grade data and storage services that enable flexible, consumption-based solutions for joint clients across industries.
"By expanding our partnership with CGI, we're enabling our shared customers to build a resilient, secure solution that delivers consistent performance and intelligent data management for their most critical workloads," said Alvaro Celis, Chief Partner and Ecosystem Officer at NetApp. "Working side-by-side, CGI and NetApp will continue to empower organizations to achieve better business outcomes through an intelligent data infrastructure that simplifies hybrid cloud adoption and securely unlocks greater value from their data."
About CGI
Founded in 1976, CGI is among the largest independent technology and professional services firms in the world. With 94,000 consultants and professionals across the globe, CGI delivers an end-to-end portfolio of capabilities, from strategic IT and business consulting to systems integration, managed IT and business process services and intellectual property solutions. CGI works with clients through a local relationship model complemented by a global delivery network that helps clients digitally transform their organizations and accelerate results. CGI Fiscal 2026 reported revenue is CA$15.91 billion and CGI shares are listed on the TSX (GIB.A) and the NYSE (GIB). Learn more at cgi.com.
About CGI's alliances
CGI's global alliance strategy features partnerships with more than 150 technology companies and supports its local relationship model complemented by a global delivery network. This approach enables CGI consultants and professionals to remain independent and agile in selecting solutions that best fit each client's unique needs, including technology stack requirements and considerations such as digital and AI sovereignty. Learn more at cgi.com/alliances
About NetApp
For more than three decades, NetApp has helped the world's leading organizations navigate change – from the rise of enterprise storage to the intelligent era defined by data and AI. Today, NetApp is the Intelligent Data Infrastructure company, helping customers turn data into a catalyst for innovation, resilience, and growth.
At the heart of that infrastructure is the NetApp data platform – the unified, enterprise-grade, intelligent foundation that connects, protects, and activates data across every cloud, workload, and environment. Built on the proven power of NetApp ONTAP, our leading data management software and OS, and enhanced by automation through the AI Data Engine and AFX, it delivers observability, resilience, and intelligence at scale.
Disaggregated by design, the NetApp data platform separates storage, services, and control so enterprises can modernize faster, scale efficiently, and innovate without lock-in. As the only enterprise storage platform natively embedded in the world's largest clouds, it gives organizations the freedom to run any workload anywhere with consistent performance, governance, and protection.
With NetApp, data is always ready – ready to defend against threats, ready to power AI, and ready to drive the next breakthrough. That's why the world's most forward-thinking enterprises trust NetApp to turn intelligence into advantage. Learn more at www.netapp.com or follow us on X, LinkedIn, Facebook, and Instagram.
NETAPP, the NETAPP logo, and the marks listed at www.netapp.com/TM are trademarks of NetApp, Inc. Other company and product names may be trademarks of their respective owners.
Investors interested in Computer- Storage Devices stocks are likely familiar with Teradata (TDC) and NetApp (NTAP). But which of these two companies is the best option for those looking for undervalued stocks?
Carvana is rated Buy with a 12-month price target of $80, reflecting strong operational execution and margin resilience. CVNA achieved record Q1 2026 results: 40% YoY retail unit growth, 52% revenue growth, and a 10.4% adjusted EBITDA margin, with net leverage at 1.1x. Operational improvements—AI-driven logistics, centralized reconditioning, and scale—are driving efficiency, with further margin upside as these roll out nationwide.
DALLAS — Carvana is aiming to bring its online strategy for selling used vehicles to sales of new cars and trucks.
But don't expect the company to actually sell you a vehicle at one of its seven Stellantis franchised dealerships.
Instead, the online vehicle retailer said it intends to use such dealerships as service locations, test-drive centers and potentially "playgrounds" for consumers to decide what vehicle they would like to buy through Carvana's online platforms, marking a stark contrast from how traditional franchised dealers handle new products.
"Every single car that we sell, whether it's used or new, is online," Tom Taira, Carvana president of special projects who's leading the new vehicle operations, told CNBC during an interview at its franchise in Texas. "That's a very inherent difference. Even coming into the store, you're buying it online, and that's a big difference in how people think about it."
Shares of Carvana fell 10% during trading Wednesday, which coincided with CarMax, the company's largest rival, beating Wall Street's quarterly expectations but reporting margin pressure and declining gross profit per retail used vehicle.
Through its used vehicle sales, Carvana has become the most valuable auto retailer in the U.S. with a more than $70 billion market cap. Carvana's target with the new vehicle business is to grow its market share and customer base as well as assist used vehicle sales through trade-ins and other means, according to Taira.
If the company is successful, the strategy could cause a ripple effect across the U.S. franchised dealership model, which the National Automobile Dealers Association says includes 16,990 retailers that topped $1.3 trillion in sales last year.
This week marks the first time Carvana has publicly talked about its plans for new vehicles since it purchased its first Chrysler-Dodge-Jeep-Ram franchised store for Stellantis early last year in Arizona. Its network has since grown to other Carvana-popular markets in Sacramento and San Diego, California; Dallas; Atlanta; Cleveland; and Boston.
"When we got into new cars, we said the only way we're going to make this happen is to ensure that it goes the Carvana way. That we actually sell cars exactly the same way that we do to used car customers," Taira said during a media event at its Dallas location. "Why break something that already works?"
Carvana spent roughly $171 million on its acquisitions of new Stellantis vehicle franchised dealerships, excluding its most recent purchase of a retailer in Ohio, according to public filings. The company declined to disclose any further investments in the stores to implement its strategy.
Taira and the company also declined to disclose Carvana's new vehicle sales so far or its future expansion plans for additional brands or other Stellantis dealerships. CNBC previously confirmed that the company has quickly grown its new vehicle sales, including a location in Arizona becoming the top-selling dealer in the country for Stellantis.
"We believe that this was worth it to us, as long as we could go out and increase share and increase the pie," Taira said. He declined to comment on whether the new vehicle business is profitable.
To be able to integrate its new vehicle sales into its current website, as first reported by CNBC, Carvana was approved as a certified website provider for Stellantis instead of utilizing mandated third-party companies. Several franchised dealers said they believed that was a unique benefit for Carvana.
Stellantis, in an statement to CNBC, said Carvana operates as a "corporate owner" of its brands, similarly to other large publicly traded companies such as Lithia and AutoNation.
"We apply the same consistent standards and criteria to all dealer partners, and any organization that meets our qualifications is eligible to operate as a franchisee," the automaker said, adding that Stellantis "certifies tools and services that will enhance our program and be beneficial to our network. All certified providers must complete a rigorous onboarding process and meet program standards and requirement."
Test-drives, vehicle 'playground'Carvana is using a location in Dallas as a test center for its foray into new vehicle sales. The facility looks like a traditional Stellantis dealership from the outside, but the consumer process for purchasing a vehicle and the responsibilities of its employees are unprecedented.
Couches and chairs replace cubicles and sales offices. There are no finance and insurance departments, and instead of an army of commission-based employees, the facility has associates that are paid hourly to assist customers — if they want the help.
The experience is meant to be as self-guided as a customer wants. By scanning QR codes located on 10-foot-by-10-foot screens inside the building or on vehicles and displays outside, shoppers can customize a vehicle, learn about a product's features and conduct test-drives before deciding whether to purchase anything. If they do decide to buy something, it's online and not originated from a sales person, the company said.
The playground has roughly 50 vehicles divided by brand, with each having a theme. Jeep has an off-road display. Dodge has race tracks, including a Carvana-themed Charger pace car and part of a traditional track fence barrier. Chrysler minivans, meanwhile, have a soccer net and Ram's area is truck-centric.
Carvana is not committing to expanding the exact experience to its other franchised dealer locations, but Taira told CNBC that the overall process of online sales, vehicle testing and service are expected to be consistent throughout the locations.
"I think the business case and the case for additional stores comes out through this location first," he told CNBC, adding that it built out the store in weeks. "Is it important for us to launch a second? No, I think what's important is that we get this right. … There's no giant plan to build test-drive centers everywhere."
Vehicle inventory constraintsOnce a customer decides to test-drive or even purchases a vehicle from the location, that's where the process can get more complex, depending on what model a consumer wants.
Taira said the company chose to purchase Stellantis dealerships for the automaker's breadth of brands as well as its variety of products, which can be a double-edged sword when it comes to consumers actually finding the exact vehicle they want to test-drive or purchase.
Unlike a traditional dealership that stockpiles vehicles for customers to test-drive before purchasing, at the Texas facility, Carvana has roughly 50 display cars on its playground, with twin vehicles for test-drives. It had roughly 3,000 new vehicles for sale nationwide compared with more than 60,000 used models as of Wednesday morning, according to its website.
This means that a customer may not be able to test-drive the exact vehicle or even model they're purchasing, but the online process tries to match the best test-drive vehicle possible with what they want. It also describes what's the same and what's different.
Carvana's stock over five years.
Looking at the Texas location's system for vehicles such as an $87,000 Ram 1500 RHO performance model, the closest thing on-site for a test-drive was a roughly $61,000 Ram 1500 Big Horn with the same interior and four-door configuration but no other feature matches, including its performance engine.
It's why traditional automotive dealers have large vehicle inventories, especially for pickup trucks that have a litany of build options and wide bandwidth of performance specs.
Taira said Carvana is continuing to take lessons learned from its year-plus experience of selling new vehicles into its day-to-day operations. He said the company is learning what vehicles to keep in stock and is working to ensure customers know they are buying a new vehicle rather than a used one.
"We're going through all this technology. This is brand new," Taira said. "All these things are active, meaning the amount of progression we're going to make over the course of the next days to weeks to months."
Taira said the company prioritizes new vehicle sales to local customers, much like it does for used vehicles, to avoid additional costs, but it does use its nationwide logistics network and more than 100 U.S. Carvana locations when necessary.
Carvana will service vehiclesA major question of Stellantis franchised dealers and Wall Street analysts before Carvana revealed its new vehicle plans was how the company planned to service the new products it sells.
Taira said the company, for the time being, will operationally run its service departments like a traditional franchised dealer, but with its guiding strategy of transparent, nonhaggling pricing and "hassle-free" customer experience.
"As it relates to how you actually do service, they're traditional. It's a traditional setup in that way," he told CNBC. "In that way, what we're doing … as it relates to service, we believe the same principles that we have with selling cars."
At the end of the day, selling cars is Carvana's core business, but servicing vehicles has historically been a lucrative market for franchised dealers, along with customer financing, which Carvana has always focused on for its business.
Much like its used vehicles, Carvana is currently only accepting cash or offering financing through the company itself, including selling consumer auto loans it originates to institutional investors and partner banks, such as Ally Financial, to maintain liquidity.
Taira did not dismiss the possibility of Carvana offering leasing or using Stellantis' financial services, which have been highly profitable for automakers, but said the offerings would need to seamlessly integrate into its current online selling platforms.
"Part of what makes this great, this experience, is what we already know. What we already know is the system that we have in place," he said. "That does not mean that integration isn't something that we're going to be [doing] as part of our learning and experimentation going forward."
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Happy Wednesday. Before we hear from Federal Reserve Chairman Kevin Warsh at his post-decision news conference this afternoon, President Donald Trump is set to hold his own press conference at the G7 summit this morning.
S&P 500 futures are little changed this morning following a down day for the index.
Here are five key things investors need to know to start the trading day:
1. Fed dayThe Federal Reserve will announce its latest policy decision at 2 p.m. today, its first decision under the leadership of Chairman Kevin Warsh. The central bank is widely expected to hold interest rates steady, but that doesn't mean there won't be other changes.
As CNBC's Jeff Cox reports, Fed watchers expect Warsh to not participate in the central bank's "dot plot," a quarterly update of where Fed officials see rates going. There could be many reasons why: Warsh doesn't approve of the dot plot, but he may also just not feel ready after taking over from Jerome Powell late last month. If Warsh doesn't submit a "dot," it would mark a break from the practice that's been in place for 14 years.
Follow live updates on the Fed meeting here.
2. En garde3. Lane changeCarvana is getting into new vehicles, but that doesn't mean it is going to follow the typical dealership road map.
As CNBC's Michael Wayland reports, the online used vehicle retailer plans to use its franchised dealerships as service centers and "playgrounds," where customers can test out which cars they'd like to buy on its online platforms. If Carvana's approach — which it detailed publicly for the first time this week —is successful, it could shake up the entire U.S. franchised dealership model.
Elsewhere in the auto industry: Rivian announced yesterday that it is cutting hundreds of workers. The layoffs, which affect less than 2% of the EV maker's workforce, come a week after the company launched deliveries of its new R2 SUV.
4. New framingConsumers are over their smartphone screens, according to Snap's CEO Evan Spiegel, who told CNBC yesterday that "people are ready to think about computing differently." To put that to the test, the social media company is launching augmented reality glasses.
Spiegel on Tuesday debuted "Specs," Snap's first AR device for the general public rather than developers. The price tag for the glasses, which are lighter and feature a larger display that previous versions, stands at $2,195 with a $200 deposit.
More people are "actually questioning their relationships with screens," Spiegel told CNBC. But investors don't seem sold: Snap shares dropped more than 9% in yesterday's session following the debut.
5. Building permitAn affordable housing bill that caps the number of single-family homes major investors are allowed to purchase is getting fast-tracked in Congress. After key lawmakers reached an agreement yesterday, the legislation is now expected to be signed into law before the end of the month.
Senate Majority Leader John Thune, R-S.D., said Tuesday that the bill could advance through his chamber as early as this week. Sen. Elizabeth Warren, D-Mass., meanwhile, told CNBC that the bill is "historic," citing it limits on private equity's growth.
The legislation would limit the number of single-family homes major investors can buy at 350. But it doesn't contain a provision that would have forced investors to sell any housing units they build within seven years.
The Daily DividendA startup teamed up with CME Group to launch what could be the first futures contracts tied to AI's computational needs. Here's a look at the burgeoning futures market for this type of power:
watch now
— CNBC's Jeff Cox, Sean Conlon, Hugh Leask, Spencer Kimball, Kai Nicol-Schwarz, Annie Palmer, Oliver Renick, Michael Wayland, Michele Luhn, Jonathan Vanian, Emily Wilkins and Yun Li contributed to this report.
CJ Haddad assisted in the production of this newsletter. Josephine Rozzelle edited this edition.
Carvana Co (NYSE:CVNA) stock is down 7.6% to trade at $64.71 today, weighed down by CarMax's (KMX) earnings report that detailed used-car market softness and subprime auto risks. Despite a 23% year to date deficit, CVNA is flashing a historically bullish signal in its options pits.
Carvana sports a 10-day put/call volume ratio of 2.08 at the International Securities Exchange (ISE), Cboe Options Exchange (CBOE), and NASDAQ OMX PHLX (PHLX) that stands higher than 94% of readings from the past year.
This marks the 10th time in the last three years that the equity's 10-day buy-to-open put/call ratio crossed over 1.0 and hit the 90th percentile. Per Schaeffer's Senior Quantitative Analyst Rocky White, CVNA was higher one month later 70% of the time after these signals with an average 24.4% return. From its current perch, this would put the stock back above its year-to-date breakeven level and pad its 10.3% year-over-year deficit.
Short squeeze potential is worth watching as well. Short interest has started to taper off in the most recent reporting period, yet the 72.22 million shares sold short account for 11.6% of the stock's total available float. At CVNA's average pace of trading, it would take shorts over five trading days to buy back their bearish bets.
Options look like an attractive route. Carvana's Schaeffer's Volatility Index (SVI) sits in the 22nd percentile of its annual rage In other words, near-term option traders are pricing in relatively low volatility expectations.
On June 17, 2026, Carvana Co CVNA shares decreased by 10.2%, closing at $62.86. This decline is part of a broader trend, with the stock down 25.5% year-to-date. Over the past year, however, CVNA has appreciated by 6.9%, demonstrating some resilience despite recent volatility. The stock has traded in a 52-week range of $54.46 to $97.38.
GF Value™ verdict: Current price at $62.86 is 16.3% below the GF Value™ of $75.09, indicating it is undervalued.GF Score™ is 74/100, categorizing it as Above Average, suggesting potential for higher long-term returns.Notable signal: Insider activity shows that insiders sold $29.1M worth of shares in the last 3 months, with no buying activity. Is CVNA Overvalued or Undervalued? Carvana Co CVNA is currently trading at $62.86, which is 16.3% below its GF Value™ estimate of $75.09. This discrepancy highlights a margin of safety for potential investors, as the stock appears to be undervalued relative to its intrinsic worth. The GF Valuation label indicates that the stock is modestly undervalued, suggesting that there may be opportunities for price appreciation as market conditions stabilize or improve.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. While the undervaluation presents an opportunity, it is essential to consider the risks involved, such as market volatility and the lack of insider buying, which may signal caution among company leadership.
How Does CVNA's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 38.2x 74.7x Forward P/E 40.8x N/A The current P/E (TTM) of 38.2x is significantly below its 5-year median P/E of 74.7x, indicating that CVNA is trading at a much lower valuation compared to its historical averages. This analysis aligns with the GF Value™ verdict of being undervalued, as the stock appears to be trading at a discount relative to its historical performance metrics.
What Does CVNA's GF Score™ Tell Us? Metric Rating GF Score™ 74 Financial Strength 7/10 Profitability 3/10 Growth 6/10 Valuation 9/10 Momentum 7/10 The GF Score™ of 74/100 indicates that Carvana Co has a solid foundation for long-term growth, particularly in terms of its financial strength and valuation. The strongest area is its Valuation rank of 9/10, suggesting it is priced attractively compared to its historical norms. However, the Profitability rank of 3/10 is a point of concern, indicating that the company may face challenges in generating consistent profits.
What Are Insiders Doing with CVNA Stock? Over the last three months, insiders have sold $29.1 million in shares of Carvana Co, with no reported buying activity. This pattern of selling without any buying might suggest a lack of confidence from the company's leadership in the current stock price or future performance. Such insider selling could be a red flag for potential investors, as it may indicate that those closest to the company believe the stock is overpriced or that they are looking to secure gains amid market uncertainties.
What This Means for Investors Based on the GF Value™ assessment, Carvana Co CVNA is currently undervalued. The significant gap between its current price and the GF Value™ suggests there may be potential for a rebound, but investors should remain cautious due to the recent insider selling and market volatility.
For the complete analysis, visit the Carvana Co CVNA stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is CVNA's GF Score™?
CVNA's GF Score™ is 74/100, indicating that it is above average and has the potential to generate higher long-term returns.
Is CVNA overvalued or undervalued?
CVNA is currently undervalued, with a GF Value™ of $75.09 compared to its market price of $62.86.
What is CVNA's P/E ratio?
CVNA's P/E (TTM) is 38.2x, which is 49% below its 5-year median of 74.7x, indicating it is trading at a lower valuation compared to its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
Here are five stocks added to the Zacks Rank #1 (Strong Buy) List today:
Fomento Economico Mexicano (FMX - Free Report) : This bottler of Coca-Cola trademark beverages has seen the Zacks Consensus Estimate for its current year earnings increasing 20.2% over the last 60 days.
Silvercorp Metals Inc. (SVM - Free Report) : This miner of mineral properties has seen the Zacks Consensus Estimate for its current year earnings increasing 25% over the last 60 days.
Orion Group Holdings, Inc. (ORN - Free Report) : This specialty construction company has seen the Zacks Consensus Estimate for its current year earnings increasing 8.1% over the last 60 days.
Carvana Co. (CVNA - Free Report) : This e-commerce platform for buying and selling cars has seen the Zacks Consensus Estimate for its current year earnings increasing 23.4% over the last 60 days.
Select Water Solutions, Inc. (WTTR - Free Report) : This water management solutions company has seen the Zacks Consensus Estimate for its current year earnings increasing 46.2% over the last 60 days.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Cash Grant Available to Public School Automotive and Engineering CTE Programs Nationwide
PHOENIX--(BUSINESS WIRE)--Carvana (NYSE: CVNA), the industry pioneer for buying and selling cars online, and the Jimmie Johnson Foundation today announced the launch of Driving Brighter Futures, a grant program designed to accelerate career and technical education (CTE) in automotive and engineering programs at public schools serving grades K-12 across the country.
Every great mechanic, engineer, and technician started somewhere. For many, it was a classroom — a CTE program with a dedicated teacher, a well-equipped shop, and the belief that hands-on skills can open doors. Even as more students express interest in learning automotive trades, many of the public school programs responsible for developing that talent pipeline operate with very limited resources to keep pace with a rapidly evolving industry. Driving Brighter Futures was created to change that, one school at a time.
"I grew up around cars, and I know firsthand how transformative it is when a young person finds their passion in a shop," said Jimmie Johnson, seven-time NASCAR Cup Series champion and owner of LEGACY MOTOR CLUB. "The educators running these CTE programs are doing incredible work, often with very little. Driving Brighter Futures is about making sure they have what they need to keep inspiring the next generation — because the industry needs these students, and these students deserve the opportunity."
"At Carvana, we're deeply committed to building the workforce that keeps the automotive industry moving forward. Driving Brighter Futures is an investment in the students who will one day design, build, and repair the vehicles of tomorrow. We're honored to team up with Jimmie Johnson Foundation on a program that puts real resources where they matter most." said Ryan Keeton, Carvana Co-Founder and Chief Brand Officer.
Nominations are open and will be accepted through August 28, 2026. To nominate a school or learn more about Driving Brighter Futures, please visit the Jimmie Johnson Foundation website here.
This year, the program will award one deserving public school automotive or engineering CTE program with a grant to invest in what their program needs most to educate the next generation of students, whether that's new tools, updated curriculum, or vehicles for students to work on.
About Carvana
Carvana’s mission is to change the way people buy and sell cars. Since launching in 2013, more than 4 million customers have chosen Carvana’s leading automotive e-commerce experience to shop, sell, finance, and trade in vehicles entirely online, with the convenience of delivery or local pickup as soon as the same day. Carvana’s unique offering is powered by its passionate team, differentiated national infrastructure, and purpose-built technology.
For more information, please visit Carvana.com.
About the Jimmie Johnson Foundation
Chandra and Jimmie Johnson launched the Jimmie Johnson Foundation in 2006 with a mission to assist children, families, and communities in need in the United States. The Foundation currently supports K-12 public education, primarily through the Champions Grant program. JJF is celebrating 20 Years of Impact in 2026, having committed more than $13.7 million to various K-12 public schools and charities across the country since inception. To learn more about how you can support JJF’s work, visit www.jimmiejohnsonfoundation.org.
The move suggests some dip-buying or short-covering is showing up following last week’s weakness, despite a cautious tape for discretionary names. Here’s what investors need to know.
Carvana stock is showing upward movement. What’s driving CVNA shares up? What CarMax’s Recent Earnings Mean for CarvanaCarMax last week posted fiscal first-quarter adjusted EPS of $1.31 versus expectations of 94 cents on revenue of $8.01 billion versus $7.41 billion, but its shares slipped as investors focused on weaker retail used-vehicle profitability.
Management also warned that margin pressure is likely to persist as it prioritizes sales growth, which is weighing on sentiment across the used-auto retail group.
Even with the earnings beat, CarMax’s gross profit fell 4.4% to $854.4 million and gross profit per retail used unit dropped $230 to $2,177, reinforcing the idea that pricing competition is still intense.
Critical Price Levels to Watch for CVNACarvana is trying to stabilize near its 20-day simple moving average ($68.29), but the bigger trend picture still leans heavy: the stock is trading 5.3% below its 50-day SMA ($72.20) and 6.9% below its 200-day SMA ($73.50). That bearish "stack" matters because it often turns rallies into sellable bounces, especially after the death cross that formed in March.
For momentum, RSI is the cleaner read right now: at 52.19 it’s basically neutral, which fits a stock that’s chopping rather than trending hard in either direction. RSI measures how stretched buying or selling pressure is, and this level says the stock isn’t oversold even though it’s still working back from a weak spring setup (with a recent swing low in March and swing high in April).
Key Resistance: $73.00 — a round-number area that lines up with the 200-day moving-average zone, where rebounds can stall Key Support: $61.00 — a nearby floor above the recent low zone where buyers previously showed up What Is Carvana and How Does It Operate?Carvana is an e-commerce platform for buying and selling used cars, with revenue coming from used vehicle sales, wholesale vehicle sales, and other sales and revenues. Those "other" streams include selling loans through securitizations or financing partners, plus commissions on vehicle service contracts and GAP waiver coverage.
The key point for today’s read-through is that retail unit economics still drive the story, and that’s exactly where CarMax is flagging ongoing pressure. If peers keep leaning into price cuts to move inventory, it can keep a lid on margin expectations across the online and brick-and-mortar used-car space.
Carvana’s Benzinga Edge Rankings ExplainedBelow is the Benzinga Edge scorecard for Carvana, highlighting its strengths and weaknesses compared to the broader market:
Momentum: Weak (Score: 22.63) — The stock’s recent trend strength is lagging, which fits with price still pinned under key longer-term moving averages. Growth: Strong (Score: 98.93) — The scorecard is flagging a growth-heavy profile, which can keep the stock sensitive to execution and margin expectations. The Verdict: Carvana’s Benzinga Edge signal reveals a growth-heavy profile with weak momentum, meaning the long-term narrative may be intact but the chart still needs to prove it can sustain breakouts. For longer-term bulls, the key is whether price can reclaim the low-$70s area; for risk control, the $61.00 support zone is the nearby "line in the sand."
CVNA Stock Price Movement on MondayCVNA Stock Price Activity: Carvana shares were up 2.28% at $68.08 at the time of publication on Monday, according to Benzinga Pro data.
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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
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It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? The Zacks Style Scores, developed alongside the Zacks Rank, are complementary indicators that rate stocks based on three widely-followed investing methodologies; they also help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum trading is all about taking advantage of upward or downward trends in a stock's price or earnings outlook, and these investors live by the saying "the trend is your friend." The Momentum Style Score can pinpoint good times to build a position in a stock, using factors like one-week price change and the monthly percentage change in earnings estimates.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank A proprietary stock-rating model, the Zacks Rank utilizes the power of earnings estimate revisions, or changes to a company's earnings outlook, to help investors create a successful portfolio.
Investors can count on the Zacks Rank's success, with #1 (Strong Buy) stocks producing an unmatched +24% average annual return since 1988, more than double the S&P 500's performance. But the model rates a large number of stocks, and there are over 200 companies with a Strong Buy rank, plus another 600 with a #2 (Buy) rank, on any given day.
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As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
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Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Tapestry (TPR - Free Report) Founded in 1941 and headquartered in New York, Tapestry, Inc., which was formerly known as Coach, Inc., is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The company offers lifestyle products, which include handbags, women’s and men’s accessories, footwear, jewelry, seasonal apparel collections, sunwear, travel bags, fragrance and watches. The company sells through direct-to-consumer, wholesale and licensing channels. Tapestry currently operates under two core brands following portfolio rationalization — Coach and Kate Spade. In third-quarter fiscal 2026, Coach generated $1.70 billion in revenues, while Kate Spade contributed $219.6 million.
TPR is a #2 (Buy) on the Zacks Rank, with a VGM Score of B.
Momentum investors should take note of this Retail-Wholesale stock. TPR has a Momentum Style Score of A, and shares are up 7.4% over the past four weeks.
For fiscal 2026, seven analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.50 to $6.95 per share. TPR boasts an average earnings surprise of +15.6%.
With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, TPR should be on investors' short list.
Growth investors focus on stocks that are seeing above-average financial growth, as this feature helps these securities garner the market's attention and deliver solid returns. However, it isn't easy to find a great growth stock.
In addition to volatility, these stocks carry above-average risk by their very nature. Also, one could end up losing from a stock whose growth story is actually over or nearing its end.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Our proprietary system currently recommends Tapestry (TPR - Free Report) as one such stock. This company not only has a favorable Growth Score, but also carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
Here are three of the most important factors that make the stock of this maker of high-end shoes and handbags a great growth pick right now.
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Tapestry is 15.8%, investors should actually focus on the projected growth. The company's EPS is expected to grow 36.4% this year, crushing the industry average, which calls for EPS growth of 28.7%.
Cash Flow GrowthWhile cash is the lifeblood of any business, higher-than-average cash flow growth is more important and beneficial for growth-oriented companies than for mature companies. That's because, growth in cash flow enables these companies to expand their businesses without depending on expensive outside funds.
Right now, year-over-year cash flow growth for Tapestry is 10.6%, which is higher than many of its peers. In fact, the rate compares to the industry average of -3.2%.
While investors should actually consider the current cash flow growth, it's worth taking a look at the historical rate too for putting the current reading into proper perspective. The company's annualized cash flow growth rate has been 21.2% over the past 3-5 years versus the industry average of 14.1%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
The current-year earnings estimates for Tapestry have been revising upward. The Zacks Consensus Estimate for the current year has surged 0.1% over the past month.
Bottom LineTapestry has not only earned a Growth Score of A based on a number of factors, including the ones discussed above, but it also carries a Zacks Rank #1 because of the positive earnings estimate revisions.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination indicates that Tapestry is a potential outperformer and a solid choice for growth investors.
Key Takeaways On May 7, 2026, Tapestry beat on earnings for the eleventh quarter in a row. Tapestry grew revenue by 21% in the fiscal third quarter, including 20% in North America.It is shareholder-friendly, with both a share buyback program and a dividend, yielding 1.1%. Tapestry, Inc. (TPR - Free Report) has two of the most recognizable retail brands in the world in Coach and Kate Spade New York. This Zacks Rank #1 (Strong Buy) is expected to grow its earnings 13.8% this fiscal year.
Tapestry has two global brands, Coach and Kate Spade New York. Coach was founded in 1941 in New York as the Original American House of Leather. Kate Spade was founded in 1993 on a collection of six iconic handbags.
Tapestry operates retail stores and e-commerce channels.
Another Earnings Beat for Tapestry in the Fiscal Third Quarter 2026On May 7, 2026, Tapestry reported its fiscal third quarter 2026 results and beat the Zacks Consensus Estimate by $0.35. Earnings were $1.66 versus the consensus of $1.31.
It was the eleventh earnings beat in a row. Tapestry has only missed on earnings once in the last five years.
Net sales jumped 21% to $1.92 billion and were also up 19% on a constant currency basis.
Gross margin was 76.9% up from 76.1% in the year ago quarter. The 80 basis points improvement in the margin was due to operational improvements of about 190 basis points as well as a favorable impact from the sale of Stuart Weitzman of 70 basis points.
Tariff and duty impacts were negative in the quarter by 180 basis points.
Tapestry acquired over 2.4 million new customers globally in the quarter, led by an increase in the number of GenZ customers. GenZ represented over 35% of new customers in the quarter.
It saw accelerated growth in core leathergoods, led by strong handbag revenue gains at Coach. Handbag units rose more than 20%.
Sales in most geographies were higher with North America, the company’s largest market, up 20%. Greater China jumped 55% and Europe gained 21%.
Only Japan was weak in the quarter, falling 10%.
Tapestry Raised Full Year 2026 GuidanceAfter such a strong quarter, it’s not surprising that Tapestry raised its fiscal full year 2026 guidance.
It now expects revenue of around $7.95 billion, which is growth of about 14%.
Earnings are now expected around $6.95, up from its previous guidance of $6.40 to $6.45.
Given the higher guidance, it’s not surprising that the analysts have raised earnings estimates. Two estimates are higher in the last 30 days and seven are higher in the prior 60 days.
The Zacks Consensus is calling for $6.95, up from $6.87 just 30 days ago. That’s earnings growth of 36.3% versus FY 2025 when the company made $5.10.
Two estimates are also higher in the last month for FY2027. It has pushed the Zacks Consensus for FY2027 to $7.61 from $7.46. This is another 9.4% earnings growth.
This is what it looks like on the price and consensus chart.
Image Source: Zacks Investment Research
Shares of Tapestry are up Double Digits in 2026Shares of Tapestry have rallied in the last year and while things got rockier in 2026 when the Middle East conflict began, the shares are still up double digits this year.
Image Source: Zacks Investment Research
Tapestry is attractively priced with a forward price-to-earnings (P/E) of 20.6. This is under the average P/E of the S&P 500 which is at 21.
The company is also shareholder friendly. It has been generating significant free cash flow.
It expects to return $1.6 billion to shareholders this year, up from its previous guidance of $1.5 billion. This is approximately 100% of its anticipated adjusted free cash flow.
The company pays a dividend, which is yielding 1.1%. It also has a shareholder buyback program of $1.3 billion. During the fiscal third quarter it repurchased about $150 million in shares. Year-to-date it has spent a total of $1.05 billion out of the $1.3 billion.
For investors looking for strong global retail brands with double digit revenue growth, Tapestry should be on your short list.
Key Takeaways GCO, DBI, SFIX, TLYS and FOSL are highlighted as small-cap picks with Buy ratings. SFIX cites rising revenue per client, AI-driven efficiencies and broader assortment.GCO, DBI, TLYS and FOSL saw earnings estimates improve, with some up more than 100%. Small-cap stocks are witnessing a solid rally in 2026, ahead of their large-cap peers. The two small-cap-centric benchmarks — the Russell 2000 and the S&P 600 Indexes — are up 17.25 and 17.1%, respectively, year to date.
On the other hand, the Retail - Apparel and Shoes industry entered 2026 on a relatively stable note despite a volatile macroeconomic environment, with demand increasingly shaped by more selective, value-conscious consumers and faster-moving trends. This space is benefiting from strong premiumization and digital momentum.
The Zacks-defined Retail – Apparel and Shoes industry is currently within the top 36% of the Zacks Industry Rank. Since it is ranked in the top half of the Zacks Ranked Industries, we expect it to outperform the market over the next three to six months.
Here, we recommend five small cap apparel and shoes stocks with a favorable Zacks Rank for a stable portfolio. These are: Genesco Inc. (GCO - Free Report) , Designer Brands Inc. (DBI - Free Report) , Stitch Fix Inc. (SFIX - Free Report) , Tilly's Inc. (TLYS - Free Report) and Fossil Group Inc. (FOSL - Free Report) .
Each of our picks currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The chart below shows the price performance of our five picks in the past month.
Image Source: Zacks Investment Research
Genesco Inc.Genesco is a specialty retail and branded company that sells footwear and accessories in retail stores throughout the United States, Canada, the United Kingdom and the Republic of Ireland. GCO sells products principally under the brand names Journeys, Journeys Kidz, Little Burgundy, Schuh, Schuh Kids, and Johnston & Murphy.
GCO also offers products on various websites. In addition, GCO sells footwear at wholesale under its Johnston & Murphy brand, the licensed Levi's brand, the licensed Dockers brand, the licensed Bass brand, and other brands.
Genesco has an expected revenue and earnings growth rate of -0.02% and 55.2%, respectively, for the current fiscal year (ending January 2027). The Zacks Consensus Estimate for the current fiscal year’s earnings has improved 4.7% over the last 30 days.
Designer Brands Inc.Designer Brands designs, produces and retails footwear and accessories. DBI offers shoes, boots, sandals, sneakers, socks, handbags and accessories. DBI’s operating segment consists of the DSW segment, which includes DSW stores and dsw.com and the Affiliated Business Group segment.
Designer Brands has an expected revenue and earnings growth rate of 0.5% and more than 100%, respectively, for the current fiscal year (ending January 2027). The Zacks Consensus Estimate for the current fiscal year’s earnings has improved 8.6% over the last seven days.
Stitch Fix Inc.Stitch Fix is demonstrating solid momentum, supported by stronger client monetization and improved operational efficiency. SFIX’s average order value and revenue per active client are rising, reflecting increased customer spending.
Cost leverage has improved through efficiencies in SG&A, warehouse operations and AI-driven processes. SFIX’s hybrid model, combining AI personalization with human stylists, along with expanded categories and brand assortment, strengthens its competitive position. SFIX expects continued growth in revenue per client and overall revenues.
Stitch Fix has an expected revenue and earnings growth rate of 4.9% and 71.7%, respectively, for the next fiscal year (ending July 2027). The Zacks Consensus Estimate for next fiscal year’s earnings has improved 42.9% over the last seven days.
Tilly's Inc.Tilly's is a specialty retailer in the action sports industry selling clothing, shoes and accessories. TLYS distributes t-shirts, sweatshirts, jackets, shorts, pants, jeans, sweaters, swimwear, shoes and accessories for men, women and kids through its website.
TLYS sells denim apparel and cologne for guys, boys and juniors and apparel, footwear and accessories for juniors and girls under RSQ, Full Tilt, Blue Crown and Infamous brand names. TLYS sells its merchandise through its stores and e-commerce website, www.tillys.com.
Tilly’s has an expected revenue and earnings growth rate of 4.9% and 89.7%, respectively, for the current fiscal year (ending January 2027). The Zacks Consensus Estimate for the current fiscal year’s earnings has improved 64.7% over the last 30 days.
Fossil Group Inc.Fossil Group is involved in the designing, marketing and distribution of consumer fashion accessories. FOSL’s product portfolio includes men's and women's watches, handbags, belts, small leather goods, jewelry, sunglasses, hats, gloves and scarves, jeans, outerwear, fashion tops and bottoms, tee shirts as well as optical frames.
FOSL’s brands include MICHELE, Zodiac, Relic, Emporio Armani, DKNY, Armani Exchange, Michael Kors, Diesel, Burberry, Marc by Marc Jacobs, Adidas, Skagen Denmark, and Karl Lagerfeld.
FOSL operates in four different segments: the North America Wholesale segment, the Europe Wholesale segment, the Asia Pacific Wholesale segment and the Direct-to-Consumer segment. FOSL serves the market through department stores, specialty retail stores, specialty watch and jeweler stores, retail and outlet stores, mass market stores, the clothing stores as well as through its catalogs and website.
Fossil Group has an expected revenue and earnings growth rate of -4.9% and 89.6%, respectively, for the current year. The Zacks Consensus Estimate for the current year’s earnings has improved more than 100% over the last 30 days.
June 23, 2026 07:00 ET | Source: Fossil Group, Inc.
RICHARDSON, Texas, June 23, 2026 (GLOBE NEWSWIRE) -- Fossil Group, Inc. (NASDAQ: FOSL) announced today that the Company is set to join the small-cap Russell 2000® Index at the conclusion of the June 2026 Russell Reconstitution. This inclusion will become effective when the U.S. market closes on June 26, 2026.
Franco Fogliato, CEO, stated, “We are pleased to join the Russell 2000 Index, which we believe will enhance Fossil Group’s visibility among investors as we continue to execute on our turnaround plan and advance on our path to long-term profitable growth.”
The Russell 2000® Index measures the performance of the small-cap segment of the U.S. equity market and is widely used by investment managers and institutional investors for index funds and as a benchmark for active investment strategies.
About Fossil Group, Inc.
Fossil Group, Inc. is a global design, marketing, distribution and innovation company specializing in lifestyle accessories. Under a diverse portfolio of owned and licensed brands, our offerings include watches, jewelry, handbags, small leather goods, belts and sunglasses. We are committed to delivering the best in design and innovation across our owned brands, Fossil, Michele, Relic, Skagen and Zodiac, and licensed brands, Armani Exchange, Diesel, Emporio Armani, Michael Kors, Skechers and Tory Burch. We bring each brand story to life through an extensive distribution network across numerous geographies, categories, and channels. Certain press release and SEC filing information concerning the Company is also available at www.fossilgroup.com.
Rivian Automotive stock is building positive momentum. What’s driving RIVN shares up? What Is Rivian’s Robotics Spin-Out Catalyst?RJ Scaringe is backing a robotics spin-out called Mind Robotics, which launched in late 2025 from an internal effort known as "Project Synapse," and has raised over $1 billion across three rounds. The latest round values Mind at $3.4 billion, and Rivian is expected to be the first customer using its Normal, Illinois plant as a live deployment site for AI-powered humanoid robots.
Rivian's robotics structure also contrasts with Tesla's in-house Optimus push, where mass production began in January 2026 with a 50,000-unit target by year-end, a competitive benchmark for factory-automation narratives in EV manufacturing. That comparison matters to RIVN because investors often price automation as a margin lever when EV demand and pricing get choppy.
Rivian's longer-term product catalyst is also shifting from concept to commercialization as the company began delivering the R2 this month at a $58,000 starting price, with a cheaper $45,000 version promised for 2027. Early lease quotes near $829 a month have kept affordability in focus as the R2 tries to pull share from Tesla's mass-market base.
RIVN Technical Analysis: Key Levels To WatchRivian is trading above its major moving averages, sitting 3.8% above the 20-day SMA ($15.74) and 4.3% above the 200-day SMA ($15.67), which keeps the near-term trend pointed up. That said, the longer-term backdrop is still mixed because the death cross from May (50-day SMA below the 200-day SMA) remains in place even as the 20-day SMA has moved above the 50-day SMA.
RSI is 51.13, a neutral reading that suggests momentum isn't stretched and the stock is more in "prove it" mode than in a chase setup. In that context, traders often look for follow-through above nearby pivots rather than expecting an immediate breakout.
Key Resistance: $18.00 — a round-number area that can act as a natural spot for rallies to stall Key Support: $14.50 — a nearby floor that sits below the current price and marks a level where buyers previously stepped in What Is Rivian and How Does It Operate?Rivian is a battery electric vehicle automaker that sells vehicles in the US and Canada, with a lineup that includes a luxury truck, a full-size SUV, and a delivery van. The company delivered over 42,000 vehicles in 2025 and plans to begin selling a midsize SUV in 2026.
Beyond vehicles, Rivian develops electronic control units and related auto software through a joint venture with Volkswagen, and it's also building autonomous driving software aimed at both its own vehicles and future robotaxis on the Uber ride-hailing network. That makes the Mind Robotics effort relevant to the stock narrative because it adds another "technology platform" angle tied directly to factory productivity and manufacturing execution.
RIVN Stock Price Action Update for WednesdayRIVN Stock Price Activity: Rivian Automotive shares were trading 1.82% higher at $16.22 at the time of publication on Wednesday, according to Benzinga Pro data.
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Rivian Automotive (RIVN 0.10%) has spent years getting investors excited about its cheaper vehicle. That vehicle, the R2 SUV, finally started reaching customers this month. One week later, the company cut jobs.
The layoffs hit less than 2% of Rivian's workforce, landing on the sales and marketing side of the business rather than the factory floor.
"We recently restructured a handful of teams within Rivian as we work to profitably scale our business," the company said in a statement.
Shares had slipped 4.5% on the news, leaving the company worth around $20 billion and still down for the year despite a strong run into the R2's launch.
But are these job cuts bad news or something else?
Image source: The Motley Fool.
The cuts are small and targeted Measured against the 17,000 employees CEO RJ Scaringe recently said Rivian has, less than 2% works out to about 300 jobs, concentrated in one corner of the company. And those cuts sit alongside a much larger hiring push recently -- headcount has climbed from about 15,200 at the end of last year, driven mostly by the R2 ramp and Rivian's self-driving program. So, this looks less like a retreat than a reshuffle, pulling money away from customer-facing roles and toward building cars and software.
Still, trimming sales and marketing staff in the same week you launch your highest-volume vehicle yet is an unusual sequence. It points to a company under pressure to spend less while ramping its most important product.
What the layoffs don't fix The deeper problem isn't the size of the marketing team. It's the cost of building each vehicle.
Rivian posted $119 million in consolidated gross profit in the first quarter. But nearly all of it came from software and services tied to a joint venture with Volkswagen. Strip that out, and the core vehicle business lost about an average of $6,000 per vehicle delivered, before counting overhead and research. A year earlier, that same segment turned a gross profit. The swing came largely from regulatory credits (the clean-vehicle credits Rivian sells to other automakers), which shrank by $100 million and had been propping up the segment.
The R2 is meant to close that gap. Its parts are expected to cost about half what they do on the pricier R1 line, and Rivian is targeting positive automotive gross profit by the end of 2026 as R2 volumes build. But the early months of a launch are the most expensive.
"[W]e expect the complexity of a new vehicle launch will negatively impact our Automotive gross profit in the second and third quarters before becoming a benefit for our overall operations in the fourth quarter as we ramp production and deliveries," said chief financial officer Claire McDonough during the company's first-quarter earnings call.
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At the same time, Rivian is spending more than ever on autonomous driving -- now its largest research area -- as part of a robotaxi partnership with Uber Technologies. That spending is why the company pushed back its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) profitability target in March, one it had previously set for 2027. So even as Rivian cuts customer-facing jobs to guard near-term margins, it's widening a bet that won't pay off for years.
So, are these job cuts bad news? Not necessarily. But it's not necessarily good news either. Instead, it's more of a byproduct of the company's evolution. Ultimately, Rivian has billions in cash to fund the ramp, and a sliver of sales staff won't decide whether the R2 turns profitable. What will determine its profitability over the long haul is the success of its vehicles and the economics of its business. And we'll look for signals on both of these themes in the back half of the year, when we'll see whether R2 deliveries help Rivian's total deliveries climb toward the 62,000 to 67,000 vehicles Rivian has guided for, and whether the per-vehicle loss starts narrowing.
Electric SUV maker Rivian Automotive (Nasdaq: RIVN) has cut hundreds of jobs as it seeks to achieve profitability, the company confirmed.
The layoffs come just days after the automaker launched its new R2 mid-size SUVs to the public. Here’s what you need to know about Rivian’s layoffs and how the company’s stock price has reacted.
What’s happened?Yesterday, Rivian confirmed it was initiating another round of job cuts. The last time the EV maker initiated mass layoffs was in October, when it laid off more than 600 workers following the Trump administration’s elimination of the $7,500 electric vehicle credit.
At the time, the layoffs amounted to about 4.5% of its workforce.
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This time around, Rivian says the job cuts will affect fewer than 2% of its workforce. The latest job cuts were first reported by the Wall Street Journal.
Rivian had just over 15,200 employees at the end of 2025, so a reduction of less than 2% in its workforce equates to around 300 job losses. The cuts will primarily affect those working in the company’s service and customer departments, which handle sales and marketing for Rivian.
According to Reuters, those being laid off will have the option of applying for other open roles at the company.
Rivian has been sued over allegations that the EV maker made false claims about the autonomous driving capabilities of its R1T truck and R1S SUV models.
The class-action complaint, which was filed Wednesday in the U.S. District Court for the Central District of California, focuses on the first-generation models of the R1T and R1S and claims that Rivian represented that these flagship vehicles would be capable of hands-free, eyes-off driving.
This kind of capability is also called Level 3 autonomy, a designation by the Society of Automotive Engineers (SAE) that means the vehicle can automatically handle steering, acceleration, and braking without the driver’s hands on the wheel or eyes on the road in certain conditions such as highways or at low speeds. This doesn’t mean these vehicles are fully autonomous; the human driver is still expected to stay attentive and take over when necessary.
The lawsuit alleges Rivian falsely promised, over a five-year period and through a coordinated nationwide marketing campaign, that it would make its hands-free driver-assistance system — known as Driver+ — standard in every vehicle it builds. Among the appearances cited in the suit: Rivian CEO RJ Scaringe’s appearance at TechCrunch Disrupt 2022, where he reportedly made representations about the company’s autonomous driving ambitions.
“No software update — no matter how sophisticated — will enable its Gen 1 Vehicles to perform as advertised,” the complaint reads. “Rivian unquestionably knew that its Gen 1 Vehicles would never be capable of Level 3 autonomy or ‘true hands-free driving’ yet continued to tout the supposed capabilities of its vehicles to induce consumers to purchase them.”
Rivian declined to comment on the lawsuit, citing pending litigation.
The lawsuit, which includes three named plaintiffs, makes claims against Rivian for fraud, negligent misrepresentation, and unjust enrichment. Coleman Law and Tycko & Zavareei, the law firms representing the plaintiffs, have requested a jury trial.
It wouldn’t be the first time Rivian has faced a successful legal challenge. Last year, the company agreed to pay $250 million to settle a class-action shareholder lawsuit filed after it suddenly hiked prices on its R1 pickup truck and SUV in 2022.
Rivian’s first-generation R1T and R1S vehicles do not offer hands-free driving. Its second-generation vehicles, which were overhauled in 2024, do. The second-generation vehicles look materially the same, but Rivian revamped their internals, including the battery pack and suspension system, and the electrical architecture, interior seats, and sensor stack.
As part of the revamp, the second-gen R1 vehicles were equipped with the “Rivian Autonomy Platform,” which comes standard and includes 11 cameras, five radar sensors, and a computer that is 10x more powerful than the previous system, the company told TechCrunch at the time.
The advanced driver-assistance system in the second-gen models initially included adaptive cruise control, which maintains speed and distance behind vehicles on the highway, and a highway assist feature that automatically steers, brakes, and accelerates on select highways.
Last year, Rivian rolled out “Universal Hands-Free” driving via a software update pushed out to second-gen R1 vehicles. The feature allows drivers to take their hands off the wheel on more than 3.5 million miles of roads in the United States and Canada, including a mix of highways and surface streets, as long as there are visible lane lines.
Rivian isn’t the only automaker to face legal challenges over promises to deliver self-driving features. Tesla and its CEO Elon Musk have spent a decade claiming that its vehicles would be fully autonomous via its Full Self-Driving software. Some owners have sued Tesla for failing to deliver unsupervised Full Self-Driving.
Tesla has also come under regulatory scrutiny for claims about the capabilities of its FSD and Autopilot advanced driver-assistance systems. The California Department of Motor Vehicles filed accusations alleging Tesla violated state law by deceptively marketing Autopilot, its basic advanced driver-assistance system, as well as its more capable Full Self-Driving software. A judge ruled in the DMV’s favor, but the agency decided in February not to suspend Tesla’s sales and manufacturing licenses, a 30-day penalty it opted to forgo because the EV maker has stopped using the term “Autopilot” in its California marketing.
This article originally published at 11 a.m. PT.
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
Kirsten Korosec is a reporter and editor who has covered the future of transportation from EVs and autonomous vehicles to urban air mobility and in-car tech for more than a decade. She is currently the transportation editor at TechCrunch and co-host of TechCrunch’s Equity podcast. She is also co-founder and co-host of the podcast, “The Autonocast.” She previously wrote for Fortune, The Verge, Bloomberg, MIT Technology Review and CBS Interactive.
You can contact or verify outreach from Kirsten by emailing [email protected] or via encrypted message at kkorosec.07 on Signal.
Rivian has been sued over allegations that the EV maker made false claims about the autonomous driving capabilities of its R1T truck and R1S SUV models.
The class-action complaint, which was filed Wednesday in the U.S. District Court for the Central District of California, focuses on the first-generation models of the R1T and R1S and claims that Rivian represented that these flagship vehicles would be capable of hands-free, eyes-off driving.
This kind of capability is also called Level 3 autonomy, a designation by the Society of Automotive Engineers (SAE) that means the vehicle can automatically handle steering, acceleration, and braking without the driver’s hands on the wheel or eyes on the road in certain conditions such as highways or at low speeds. This doesn’t mean these vehicles are fully autonomous; the human driver is still expected to stay attentive and take over when necessary.
The lawsuit alleges Rivian falsely promised, over a five-year period and through a coordinated nationwide marketing campaign, that it would make its hands-free driver-assistance system — known as Driver+ — standard in every vehicle it builds. Among the appearances cited in the suit: Rivian CEO RJ Scaringe’s appearance at TechCrunch Disrupt 2022, where he reportedly made representations about the company’s autonomous driving ambitions.
“No software update — no matter how sophisticated — will enable its Gen 1 Vehicles to perform as advertised,” the complaint reads. “Rivian unquestionably knew that its Gen 1 Vehicles would never be capable of Level 3 autonomy or ‘true hands-free driving’ yet continued to tout the supposed capabilities of its vehicles to induce consumers to purchase them.”
Rivian declined to comment on the lawsuit, citing pending litigation.
The lawsuit, which includes three named plaintiffs, makes claims against Rivian for fraud, negligent misrepresentation, and unjust enrichment. Coleman Law and Tycko & Zavareei, the law firms representing the plaintiffs, have requested a jury trial.
It wouldn’t be the first time Rivian has faced a successful legal challenge. Last year, the company agreed to pay $250 million to settle a class-action shareholder lawsuit filed after it suddenly hiked prices on its R1 pickup truck and SUV in 2022.
Rivian’s first-generation R1T and R1S vehicles do not offer hands-free driving. Its second-generation vehicles, which were overhauled in 2024, do. The second-generation vehicles look materially the same, but Rivian revamped their internals, including the battery pack and suspension system, and the electrical architecture, interior seats, and sensor stack.
As part of the revamp, the second-gen R1 vehicles were equipped with the “Rivian Autonomy Platform,” which comes standard and includes 11 cameras, five radar sensors, and a computer that is 10x more powerful than the previous system, the company told TechCrunch at the time.
The advanced driver-assistance system in the second-gen models initially included adaptive cruise control, which maintains speed and distance behind vehicles on the highway, and a highway assist feature that automatically steers, brakes, and accelerates on select highways.
Last year, Rivian rolled out “Universal Hands-Free” driving via a software update pushed out to second-gen R1 vehicles. The feature allows drivers to take their hands off the wheel on more than 3.5 million miles of roads in the United States and Canada, including a mix of highways and surface streets, as long as there are visible lane lines.
Rivian isn’t the only automaker to face legal challenges over promises to deliver self-driving features. Tesla and its CEO Elon Musk have spent a decade claiming that its vehicles would be fully autonomous via its Full Self-Driving software. Some owners have sued Tesla for failing to deliver unsupervised Full Self-Driving.
Tesla has also come under regulatory scrutiny for claims about the capabilities of its FSD and Autopilot advanced driver-assistance systems. The California Department of Motor Vehicles filed accusations alleging Tesla violated state law by deceptively marketing Autopilot, its basic advanced driver-assistance system, as well as its more capable Full Self-Driving software. A judge ruled in the DMV’s favor, but the agency decided in February not to suspend Tesla’s sales and manufacturing licenses, a 30-day penalty it opted to forgo because the EV maker has stopped using the term “Autopilot” in its California marketing.
This article originally published at 11 a.m. PT.
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
Kirsten Korosec is a reporter and editor who has covered the future of transportation from EVs and autonomous vehicles to urban air mobility and in-car tech for more than a decade. She is currently the transportation editor at TechCrunch and co-host of TechCrunch’s Equity podcast. She is also co-founder and co-host of the podcast, “The Autonocast.” She previously wrote for Fortune, The Verge, Bloomberg, MIT Technology Review and CBS Interactive.
You can contact or verify outreach from Kirsten by emailing [email protected] or via encrypted message at kkorosec.07 on Signal.
A few years ago, growth investors were rushing toward electric vehicle (EV) stocks. But today, high-growth AI stocks and big IPOs have largely overshadowed the EV market. Concerns about lower government subsidies, higher tariffs, supply chain disruptions, inflation, and elevated interest rates are also making EV stocks less attractive -- even if the market is still growing.
From 2026 to 2033, Grand View Research still expects the global EV market to grow at a 26.7% CAGR as EVs continue to replace gas-powered vehicles. To capitalize on that trend, investors should buy these two EV stocks while the bulls look the other way.
Image source: Rivian.
Rivian Automotive Rivian (RIVN 0.10%), which went public at $78 in 2021, currently trades at about $16. But it's valued at less than two times next year's sales, while Tesla (TSLA 4.96%) trades at 13 times next year's sales. Rivian's low valuation reflects its ongoing production issues.
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Before launching its R2 SUV this year, Rivian only sold three vehicles: the R1T pickup, R1S SUV, and custom electric delivery vans for Amazon and other companies.
It more than doubled production from 24,337 vehicles in 2022 to 57,232 in 2023, but only produced 49,476 in 2024 and 42,284 in 2025. It blamed that slowdown on supply chain constraints, reduced EV subsidies, and intense competition from other EV makers. The high starting prices of about $77,500 for the R1T and R1S further limited their mainstream appeal.
However, Rivian expects the R2 -- which launched at $57,990 this March -- to boost its annual deliveries to 62,000-67,000 this year. Analysts expect its revenue to rise 31% for the full year. It plans to launch a cheaper version of the R2 for about $45,000 in late 2027.
The R2 actually costs less to manufacture than its R1 vehicles, since it uses fewer electronic control units, an upgraded battery pack, simpler wiring, and larger castings. Therefore, the rising sales of the R2 should boost its gross margins and narrow its losses.
From 2025 to 2028, analysts expect Rivian's revenue to more than triple, from $5.4 billion to $16.9 billion, as its adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) turn positive in the final year. We should take those rosy estimates with a grain of salt, but Rivian might be on the cusp of a historic turnaround if the R2 attracts more drivers.
Nio Nio (NIO +1.09%), a major EV maker in China, went public at $6.26 per ADR in 2018. But today, it trades at about $5 and looks like a screaming bargain at less than one times next year's sales.
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Nio's discount reflects the ongoing concerns regarding its steep losses and competition from other EV makers. But from 2020 to 2025, its annual deliveries surged from 43,728 to 326,028 vehicles, and its revenue rose at a 40% CAGR.
Nio sells a wide range of electric sedans and SUVs and differentiates itself from competitors with swappable batteries, which can be quickly replaced at its own battery-swapping stations as a faster alternative to charging. It also produces its own Shenji chips, which are more powerful than Nvidia's Orin-X chips, to support its autonomous driving features.
Nio is still growing rapidly as its namesake brand captures a larger share of China's premium EV market. It's selling more low-end SUVs and compact cars through its new ONVO and Firefly sub-brands, respectively, and it's gradually expanding into the European market. From 2025 to 2028, analysts expect its revenue to nearly double to 174.4 billion yuan ($25.8 billion).
Nio's vehicle margins are improving as economies of scale kick in, and its recently spun off its unprofitable chipmaking segment (as GeniTech) to reduce its operating expenses. It's stayed profitable for the past two quarters, and analysts expect it to post its first full-year profit in 2027. All of these catalysts suggest Nio's stock is grossly undervalued -- and it could deliver multibagger gains over the next few years if the market revalues it as a growth stock again.
Amazon (AMZN +0.79%) has an impeccable track record. The e-commerce specialist leads several industries, generates consistent revenue, earnings, and cash flow, and has delivered market-crushing returns over the long run. But can the company's stock portfolio perform nearly as well? If it does, it may be because of its largest current holding, Rivian (RIVN 0.10%), an electric vehicle (EV) maker. A little over 90% of Amazon's public equity portfolio is in this single stock. Should investors also be bullish on Rivian?
Image source: The Motley Fool.
A long-standing partnership In February 2019, Rivian announced a $700 million investment round led by Amazon. That was more than two and a half years before the EV company went public. What was Amazon's reason behind this move? The e-commerce leader has a massive logistics network, including a fleet of vehicles and delivery drivers. By using EVs for transport and deliveries, the company might reduce fuel (and other) expenses.
That's why it made sense for Amazon to help fund a company like Rivian capable of providing the EVs it needs. Rivian has done exactly that. Amazon now has over 30,000 electric delivery vans on the road, provided to it by its partner. The cloud computing specialist plans to get to at least 100,000 by 2030. Amazon now owns roughly 158.36 million shares of Rivian, making it one of its largest shareholders.
The retail investing angle Investing in Rivian might have made sense for Amazon, but would it also be a good move for average retail investors? On the one hand, there are good reasons to be bullish on the stock. Rivian's first-quarter financial results were pretty strong. The company's revenue increased by 11% year over year to $1.4 billion. That was despite a slowdown in the EV market in the U.S. during the first quarter.
Further, Rivian is launching its new model, the R2. This is especially important since the R2 is a mass-market model with a much more approachable starting price than its previous vehicles. Rivian is looking to make a dent in the large midsize SUV space. Tesla's (TSLA 4.96%) Model Y competes in this niche, and it has been the world's best-selling vehicle (EV or not) over the past few years. That's the act Rivian is trying to follow. If it can, expect the company's revenue to soar.
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Then there is Rivian's attempt to reach level 4 self-driving (when cars can drive themselves with no human intervention). The company made a deal with Uber Technologies (UBER 1.58%) to provide the ride-hailing giant with a fleet of self-driving robotaxis to be rolled out in various cities starting in 2028. If Rivian meets the timeline outlined in this deal, it could secure up to $1.25 billion in investments from Uber. Just as important, Rivian might establish itself as a leader in the autonomous vehicle market and secure deals with other corporations. That's the bull case for the company, one that could lead to excellent returns if it materializes.
However, Rivian's shares have declined by 13% this year for a reason: Despite massive upside potential, the stock carries significant risks. The recent slowdown in the EV market may affect the company's launch of the R2, for instance. And although it was able to escape it during the first quarter, it did so because it sold a higher mix of commercial vans during that period, as it continues to fulfill its long-term contract with Amazon. These vans carry a lower average unit price and could eventually squeeze the company's margins.
That's why the R2 is so important, and if its launch flops -- perhaps because of recent weakness in the industry -- Rivian will be in trouble. Further, the company might fail to achieve full self-driving capabilities. That would put its deal with Uber in jeopardy. All these factors (and others) are worth considering before initiating a position in Rivian. My view is that the stock could be a great pick for contrarian investors who are comfortable with volatility -- and there will be plenty of that regardless of which way the stock moves. But risk-averse investors should look elsewhere.
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Rivian's R2 is a make-or-break product. Rivian Rivian's future may ride on a five-seat SUV with animatronic-looking headlights.
The R2 — Rivian's new midsize SUV that launched to customers on June 9 — hits the sweet spot on paper: It (eventually) starts at $44,990, delivers around 300 miles of range across trims, and competes in America's best-selling new-vehicle segment: midsize SUVs.
That makes it super important for Rivian.
If it works, Rivian could join Tesla in the tiny club of modern American automaker startups that have reached sustained profitability. If it doesn't, it risks joining the gigantic graveyard of we-tried-and-burned-through-lots-of-cash EV startups (we're looking at you, Fisker, Canoo, Lordstown, Nikola, Bollinger, et al.).
Business Insider reviewed customer communications and spoke with early R2 buyers to map when customers can place their orders in detail, including trims and drivetrain options, paint colors, interiors, wheels, and future self-driving hardware.
Here's what we found:
You may see these R2s on the road todayThe first R2s to reach customers are the $57,990 Performance models with the Launch Package. Several have been spotted on the road (and their pictures subsequently been posted on social media) across the US.
Those vehicles are available to order in six exterior colors: Esker Silver, Glacier White, Midnight, Catalina Cove, Half-Moon Grey, and Launch Green. The 20- and 21-inch wheels are also available.
The only available interior color is Black Crater.
Customers speaking to Business Insider have reported lease prices ranging from $829 to just over $1,000 a month. Delivery estimates have ranged from three to 12 weeks.
And in the future, you can order…First, a new, differently colored batch of R2 Performance options is expected to become available for order later this year.
Forest Green exterior paint and the Coastal Cloud Signature interior are expected in August 2026, while a purple Borealis exterior paint (shown above) is expected in September 2026.
Then, there will be new trims and powertrain options. The $53,990 Premium trim is expected in late 2026, while the initial Standard trim options are expected in spring of 2027.
Finally, several drivetrain configurations are arriving on different schedules. Rear-wheel-drive Long Range and all-wheel-drive Long Range versions are expected in spring 2027.
The lowest-cost, $44,990 rear-wheel-drive Standard trim is expected in summer 2027.
Rivian also expects to offer a lidar configuration in late 2026, which will help steer its self-driving ambitions, the company said.
Rivian's Model 3 moment
Auto analysts have compared Rivian's R2 launch to Tesla's rollout of their Model 3 sedan. Sjoerd van der Wal/Getty Images Seth Goldstein, an auto industry analyst at Morningstar, told Business Insider he expects the R2 could be popular enough to help America get out of its EV sales slump.
John Rosevear, a contributing analyst at The Motley Fool, is also bullish on the R2, telling Business Insider that he estimates Rivian could start turning a profit in four to six quarters of R2 sales.
For many analysts, the R2's launch reminds them of Tesla's Model 3 moment. Before the launch of the sub-$50,000 EV sedan in 2017, Elon Musk's startup relied entirely on sales of premium products — the Model X, Model S, and Roadster. The Model 3 bridged the gap between EV tech optimism and reasonable affordability.
Rivian could follow the same trajectory if all goes well. CEO RJ Scaringe has said he understands the stakes.
"The launch of R2 really ignites the business," Scaringe said during a podcast interview in October. "You need a certain level of scale, which R2 brings for us."
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Ben Shimkus You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Ben Shimkus is a reporter for the Business News desk. He writes about cars, transportation, retail, and jobs. Ben's reporting has appeared in Rolling Stone, The Verge, Automotive News, USA Today, AutoBody News, LGBTQ Nation, TopSpeed, and Out Magazine. He's also held staff writing positions at The U.S. Sun and the Daily Mail. He graduated from NYU with a Master's in journalism in 2024. Email Ben at [email protected] or message him privately on Signal at bshimkus.41.
After its record-breaking initial public offering (IPO), Space Exploration Technologies (SPCX +5.33%), known as SpaceX, is now primed to go on a spending spree. In total, the company believes it is chasing an addressable market worth $28.5 trillion. More than 90% of that value, however, is tied up exclusively in artificial intelligence (AI) opportunities, not rockets or satellites.
With IPO proceeds totaling $86.7 billion, plus a possible $20 billion bond sale, SpaceX will aggressively invest in its AI business during the coming months and years. Which AI opportunities in particular will SpaceX and its founder, Elon Musk, target?
Scaling its data center infrastructure will be at the top of its list. That increase in compute power, however, will be used for a variety of purposes, one of which will surely be advancing the models that power autonomous driving systems.
Earlier this year, Tesla (TSLA 4.96%) -- another Musk company -- invested $2 billion into xAI, Musk's AI start-up. One month later, SpaceX merged with xAI.
It's not hard to connect the dots here. AI is a key enabler of self-driving technologies. And the future of Tesla is no longer relegated to simply selling cars but to operating a global robotaxi fleet -- an opportunity some experts value at $10 trillion long term.
xAI will perhaps be the biggest recipient of SpaceX's post-IPO spending. And because Tesla holds a direct stake in that business, expect xAI to allocate some of its resources to advancing AI systems that will help Tesla better capture the emerging robotaxi market.
Oddly enough, this situation could help an unrelated EV stock: Rivian (RIVN 0.10%). There's a surprising connection here that many investors fail to appreciate.
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How SpaceX's AI spending will end up helping Rivian The global rollout of robotaxis is coming sooner than many expect. And the value of this market may also exceed most expectations.
"We think $8 trillion to $10 trillion for the entire autonomous taxi opportunity throughout the world, from almost nothing," predicts Cathie Wood, CEO of Ark Invest. "That's how quickly AI is going to cause these things to happen."
Other experts agree. "While L4 robo-taxis are now available in the first cities in the United States and China, the global rollout of robotaxis is now expected to become a reality at a large scale in 2030," concludes a research report from McKinsey. "Overall, experts expect that robotaxis will be the first commercial application for L4 in mobility -- not privately owned cars."
Image source: Rivian.
Major tech firms are already raising billions of dollars to tackle the nascent but high-potential robotaxi market. Alphabet (GOOG 0.90%)(GOOGL 1.06%), the parent company of Google, recently raised $16 billion for its Waymo robotaxi service, valuing that business at $126 billion. Uber Technologies (UBER 1.58%) has also committed more than $10 billion to scale its own robotaxi service.
But unlike Tesla, neither company can produce its own vehicles in-house. So if Tesla can ramp its autonomy capabilities quicker than before, thanks to SpaceX's elevated spending on xAI, other robotaxi competitors may fall behind in the critical area of physical vehicle production.
We're already seeing competitors respond to this reality. Earlier this year, Uber invested $1.25 billion in Rivian in exchange for as many as 50,000 Rivian vehicles -- which will be used to power Uber's robotaxi arm.
In a nutshell, the SpaceX IPO could indirectly accelerate the transition to robotaxis. Tesla can both produce its own vehicles and deploy its own self-driving software. Most of its competitors, however, lack physical manufacturing capabilities.
All this should help Rivian, a company investing heavily in producing robotaxi-capable vehicles, but that does not yet seem to be pursuing the launch of its own robotaxi service. In the coming years, I expect Rivian to become a key supplier to the robotaxi industry. Its deal with Uber is an early testament to that potential.
Down the road, I wouldn't be surprised to see a capital-rich big tech competitor buy the company outright to ensure its robotaxi arm remains as vertically integrated as Tesla's.
Rivian Automotive stock is among today’s weakest performers. Why is RIVN stock falling? The latest storyline investors are weighing is CEO RJ Scaringe’s push into humanoid robotics via a spin-out called Mind Robotics, which launched in late 2025 from "Project Synapse" and has raised over $1 billion across three rounds. The most recent round values Mind at $3.4 billion, and Rivian is expected to be the first customer, using its Normal, Illinois plant as a live deployment site for AI-powered humanoid robots.
Rivian is also contending with a more skeptical tone around cash burn, after Jim Cramer said he’s not recommending the stock because it’s "losing too much money," even as Needham reiterated a Buy and kept a $23 target on June 10.
In the background, Tesla remains the key benchmark for factory-automation narratives, with its Optimus effort moving toward a 50,000-unit target by year-end after mass production began in January 2026.
RIVN: Key Technical Levels To WatchAt $15.67, Rivian is trading 2.9% below its 20-day SMA ($16.12), but it’s essentially sitting on its 50-day SMA ($15.65) and still 1.3% above its 100-day SMA ($15.46), which keeps price in a tight consolidation zone rather than a clean trend. The longer-term picture remains conflicted because the death cross from May (50-day below the 200-day) is still in place, even as the 20-day SMA is above the 50-day SMA (a shorter-term bullish crossover).
For momentum, RSI is the cleaner read here: the stock’s prior RSI extremes (oversold in January and overbought in June) frame the current tape as more "middle of the range" than stretched. RSI is a quick way to gauge whether a move is getting overheated or washed out, and a neutral setup typically puts more weight on whether price can reclaim nearby levels rather than expecting an immediate breakout.
From a levels standpoint, traders will likely watch whether the stock can stabilize back above the 20-day average area, or whether it starts leaning into the lower end of its recent range.
Key Resistance: $18.00 — a round-number area where rebounds can stall Key Support: $14.50 — a nearby floor just below current price where buyers previously stepped in What Is Rivian Automotive and Its Business Model?Rivian is a battery electric vehicle automaker selling vehicles in the US and Canada, with a lineup that includes a luxury truck, a full-size SUV, and a delivery van. The company delivered over 42,000 vehicles in 2025 and plans to begin selling a midsize SUV in 2026.
It also develops electronic control units and related software for autos in a joint venture with Volkswagen, and it’s building autonomous driving software intended for its vehicles and for robotaxis on the Uber ride-hailing network. The robotics angle fits into the same investor debate: whether automation and software can become real margin levers while EV demand and pricing stay competitive.
RIVN Stock Price Activity UpdateRIVN Stock Price Activity: Rivian Automotive shares were down 7.20% at $15.33 at the time of publication on Monday, according to Benzinga Pro data.
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Rivian stands out as a differentiated EV play amid a top-heavy S&P 500 and AI-driven market. RIVN's recent launch of the midsize R2 platform marks a pivotal 'Model 3' moment, targeting mass-market adoption with a ~50% reduction in BOM costs. The company's latest quarterly results showcase an ever-increasing pile of software revenue, which will further RIVN's push toward gross margin profitability.
Rivian Automotive (RIVN - Free Report) closed at $15.11 in the latest trading session, marking a -8.57% move from the prior day. The stock trailed the S&P 500, which registered a daily loss of 0.37%. At the same time, the Dow added 0.29%, and the tech-heavy Nasdaq lost 1.33%.
The stock of a manufacturer of motor vehicles and passenger cars has risen by 16.17% in the past month, leading the Auto-Tires-Trucks sector's gain of 0.49% and the S&P 500's gain of 2.02%.
Market participants will be closely following the financial results of Rivian Automotive in its upcoming release. The company is predicted to post an EPS of -$0.66, indicating a 17.5% growth compared to the equivalent quarter last year. Alongside, our most recent consensus estimate is anticipating revenue of $1.44 billion, indicating a 10.34% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$2.41 per share and revenue of $7.02 billion. These totals would mark changes of +1.63% and +30.33%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Rivian Automotive. These revisions help to show the ever-changing nature of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate remained stagnant. Right now, Rivian Automotive possesses a Zacks Rank of #3 (Hold).
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 160, putting it in the bottom 35% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
The Rivian electric vehicle logo is displayed outside the company's Venice Hub space in the Venice Beach neighborhood of Los Angeles, California on June 17, 2026. (Photo by Patrick T. Fallon / AFP via Getty Images)
AFP via Getty Images
This article was written by Doug Nathman, with research by his team at Trefis.
The electric vehicle manufacturer presents an exciting new model and a substantial amount of cash to support its future, but the journey to becoming profitable is fraught with immediate losses and considerable execution risks.
After a 28.1% increase within a month, Rivian Automotive (RIVN) stock may seem like a company on the rebound. However, the situation is more intricate. The company recently marked the commencement of production for its R2, the more compact and affordable SUV that it believes will serve as a “game changer” for its long-term expansion. This marks a transformative moment. Rivian is no longer exclusively producing high-end electric trucks and vans; it is striving to become a manufacturer for the mass market. The stock, still trading roughly 26% below its highest point in the past 52 weeks, directly prompts a question for you as an investor: are you investing in a thoroughly funded, rapidly growing narrative at a pivotal juncture, or are you compensating for a strategy that faces several years of cash depletion and operational challenges?
The Cost Of OwnershipPurchasing Rivian stock at present means investing a small premium for its anticipated future rather than its current status. The stock is trading at a price-to-sales ratio of 3.7, slightly higher than the broader S&P 500's 3.2. This valuation relates to a company experiencing revenue growth at an impressive average annual rate of 44.9% over the past three years, significantly surpassing the market's rate of 5.8%. However, such growth entails substantial costs. The firm’s operating margin stands at a deeply negative -68.9%, in contrast with the average S&P 500 company’s positive 18.4%. With ongoing negative free cash flow, traditional earnings metrics do not apply. The market is effectively overlooking current losses, banking on the R2 launch to eventually provide the scale necessary to boost those margins into positive territory.
The Underlying BusinessThe valuation offers a glimpse into a company undergoing a critical transition. The entire investment thesis now revolves around the effective ramp-up of the new R2 vehicle. Management asserts that this is the juncture where the financial forecast shifts, claiming that for the R2, the “bill of materials is projected to be about half of our R1 platform.” They also expect reductions in other production expenses of “more than 50%.” This forms the crux of the strategy aimed at achieving profitability. Although the automotive segment reported a gross profit loss of $62 million last quarter, the company anticipates exiting 2026 with a “trajectory of positive automotive gross profit.”
However, proceed with caution, as the road ahead is expected to be tumultuous. Management has stated that “the complexity of launching a new vehicle will adversely affect our automotive gross profit in the second and third quarters.” Nonetheless, a silver lining is found in the Software and Services segment, which achieved $473 million in revenue last quarter, a 49% increase year-over-year, indicating potential for high-margin, recurring revenue streams.
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Strong Enough To Sustain Its Operations Without Depleting Cash?For a firm investing this significantly, the balance sheet is crucial. Rivian appears to have established a robust financial foundation to support its plans. It concluded the last quarter with around $4.8 billion in cash and short-term investments. More crucially, it has secured substantial upcoming funding. In 2026 alone, the company anticipates acquiring a total of “$2.55 billion in capital from our strategic partners,” including Volkswagen and Uber. Furthermore, it has an arrangement for an “up to $4.5 billion DOE loan” to finance its substantial new manufacturing facility in Georgia. As a result, the company’s total liquidity and projected capital for 2026 reaches nearly $8 billion. While its debt as a percentage of market value exceeds the average market rate, at 32.4% against 21.4%, this considerable liquidity is intended to sustain the company until its operations, as management describes them, can become “free cash flow positive in the future.”
Withstanding PressureA plan is essential; however, how a stock performs during adverse conditions is imperative too. Rivian’s history in this regard suggests caution. This is not a stock that remains stable during market turbulence. Throughout the inflation surge in 2022, RIVN stock plummeted 93%, which is a significantly sharper decline than the S&P 500’s 25% drop. As per the most recent data, it has yet to reclaim its pre-crisis peak. This history implies that in a widespread market downturn, Rivian is likely to perform considerably worse than the average stock. The options market concurs with the expectation of large fluctuations. It currently indicates an implied volatility of 64, placing it in the 71st percentile of its range over the past year, suggesting that traders are preparing for ongoing volatility.
Evaluating Your OptionsWhat criteria should you use to evaluate a stock like Rivian? The rationale for purchasing rests on the trust that the R2 serves as the catalyst for unlocking a profitable future. You are wagering on a substantial decrease in costs, a successful increase in production, and a brand potent enough to capture a notable share of the mainstream EV market. Additionally, you are investing in a company that has established a substantial financial buffer to navigate the unavoidable challenges of scaling operations. The collaborations with industry leaders such as Volkswagen and Uber, alongside government support, offer a significant safety net.
The reasons for exercising caution are equally tangible. The company is explicitly cautioning you to expect financial difficulties in the upcoming two quarters as it rolls out the R2. The execution risk is considerable. Scaling up a new vehicle is one of the most challenging tasks in manufacturing, and any setbacks could be expensive. As its past illustrates, if the overall market declines, this stock may experience a sharp downturn. The crucial question is whether Rivian can convert its ambitious, well-financed strategy into a profitable outcome. The key indicators to monitor are straightforward: the R2 delivery figures as they ramp up in the latter half of the year, and whether the company can achieve its target of positive automotive gross profit by the end of 2026.
Tesla (NASDAQ:TSLA | TSLA Price Prediction) stock is having a difficult session, falling 5% to $383 even as other electric vehicle (EV) names are showing far more resilience. Meanwhile, Lucid Group (NASDAQ:LCID) stock is up 1% to $5.22, and Rivian Automotive (NASDAQ:RIVN) stock is down just 1% to $14.99.
The divergence is notable because Tesla often serves as a bellwether for the broader EV sector. Yet, today’s trading action suggests investors may be reacting to factors that are more specific to Tesla stock than to electric vehicle stocks as a whole.
At the same time, Tesla continues to generate positive business headlines. For instance, Tesla recently announced a major battery storage partnership in Europe, underscoring the contrast between the company’s long-term growth initiatives and the stock’s short-term weakness.
Tesla Stock Takes the Brunt of the Selling Tesla stock appears to be absorbing the majority of the pressure hitting EV stocks today. While broader market weakness may be contributing to the decline, Tesla stock is falling much more sharply than either Lucid stock or Rivian stock.
Part of the explanation may be Tesla’s size and visibility within the market. When growth-oriented technology stocks come under pressure, Tesla stock often becomes a target for investors seeking to reduce their exposure to high-profile names.
Tesla stock has also remained under heightened scrutiny following recent debates about valuation, profitability, and future growth expectations. As a result, even modest shifts in market sentiment can have an outsized effect on Tesla shares.
Tesla’s Battery Storage Business Continues to Expand Despite today’s decline, Tesla continues to make progress on the operational front. Tesla has entered a multi-year partnership with NatPower that aims to deploy more than 25 gigawatt-hours of battery storage across Europe, with a long-term goal of reaching 100 gigawatt-hours.
According to projections associated with the initiative, the partnership could generate more than $15 billion in revenue over a 20-year period. Tesla’s energy business has increasingly become an important part of the company’s long-term growth story.
For Tesla, the agreement highlights an opportunity that extends beyond electric vehicles. The company’s battery storage operations give Tesla exposure to growing demand for energy infrastructure and grid modernization.
Why Lucid and Rivian Are Holding Up Better Lucid stock and Rivian stock aren’t exactly surging today, but both are performing substantially better than Tesla stock. That relative strength suggests investors are not broadly abandoning EV stocks.
Lucid and Rivian may attract a different investor audience than Tesla. While both companies face their own challenges, neither Lucid nor Rivian carries the same market influence or valuation expectations as Tesla.
Undeniably, Tesla remains a dominant force in the EV industry by scale, production volume, and brand recognition. That leadership position can create significant upside when sentiment improves, but it can also amplify downside volatility during market pullbacks.
A Test of Sentiment for EV Stocks Today’s trading action may ultimately prove to be more about market sentiment than company fundamentals. Tesla’s new battery storage partnership would ordinarily be viewed as a constructive development for the business.
Investors can watch for whether Tesla stock stabilizes as broader market conditions improve. Traders might also take note if the market begins assigning greater value to Tesla’s growing energy-storage operations alongside its vehicle business.
The bulls can point to Tesla’s expanding energy segment, industry leadership, and ability to pursue large-scale infrastructure opportunities. On the other hand, the bears can point to valuation concerns and the stock’s sensitivity to shifts in market sentiment.
For now, Tesla’s latest decline appears to be a reminder that even strong business developments don’t always translate into immediate gains for a stock. Wary investors might consider keeping their position sizes moderate while monitoring whether Tesla’s operational progress eventually gains greater recognition in the market.
Transformative acquisition of a rapidly growing market leader of large-scale zero-emission hydrogen-based stationary power solutions Expands Ballard's business model to include an energy-as-a-service solution with a bundled offering combining hydrogen production, distribution, logistics, refueling, fuel cells, and stationary power generation to drive higher revenue per megawatt and highly recurring revenue potential Builds upon a longstanding and proven partnership with GeoPura, where Ballard supplies fuel cell engines to GeoPura's Hydrogen Power Units Expands addressable market into high-growth end-markets in a capitally efficient manner, supported by secured hydrogen supply and government policy backing Maintains Ballard's path to profitability by 2028, unlocking US$25 million in annual run-rate EBITDA synergies , /PRNewswire/ - Ballard Power Systems Inc. (NASDAQ: BLDP) (TSX: BLDP) ("Ballard", the "Company"), a global leader in hydrogen fuel cell technology, today announced that it has entered into a definitive agreement (the "Agreement") to acquire GeoPura Limited ("GeoPura"), a zero-emission hydrogen-based power solutions provider (the "Transaction"). The Transaction consists of an upfront equity purchase price of £275.0 million ("Upfront Consideration"), funded through a combination of £82.5 million in Ballard cash on hand and the issuance of ~50.8 million Ballard common shares to GeoPura shareholders, at US$5.02 per share, based on Ballard's 30-day volume-weighted average share price. In addition to the Upfront Consideration, Ballard will pay contingent consideration of up to £27.5 million if GeoPura achieves certain specified financial milestones after closing of the Transaction. The total transaction enterprise value1, including assumption of GeoPura net debt and excluding contingent consideration, is £301.1 million (~US$400 million).
GeoPura CEO Andrew Cunningham (left) and CTO Theo Elmer (right) in front of an HPU-2 500kW system containing Ballard Fuel Cell Engines. (CNW Group/Ballard Power Systems Inc.) The Transaction represents a transformative acquisition that establishes Ballard as a vertically integrated and capitally efficient energy-as-a-service ("EaaS") provider with end-to-end capabilities spanning hydrogen production, distribution, logistics, refueling, fuel cells, and high-performance stationary power solutions.
Founded in 2019 and headquartered in the United Kingdom, GeoPura has built a rapidly growing business focused on developing, leasing and selling Hydrogen Power Units ("HPUs") and hydrogen fuel supplied through its three production sites, including a 50% ownership interest in UK-based HyMarnham Power. The combined HPU and fuel offering delivers a competitive, grid-independent power solution with high reliability, instant-on responsiveness, low noise, and zero-emissions across a variety of end-markets. GeoPura's broad customer base includes Aggreko, Balfour Beatty, BBC, Disney, Equinix, Microsoft, Netflix, Sunbelt Rentals, UK Ministry of Defence, and others.
The Transaction builds on a proven Ballard-GeoPura partnership and strong strategic alignment. GeoPura's UK-developed technology and British manufacturing complement Ballard's Canadian fuel cell expertise, creating a platform grounded in shared values, common history, and a commitment to reliable, zero-emission power. This Canadian-British combination supports global expansion by pairing GeoPura's hydrogen ecosystem with Ballard's world-class fuel cell platform to deliver a bundled customer offering and unlock meaningful efficiencies for existing and future customers.
MANAGEMENT REMARKS
Marty Neese, President and Chief Executive Officer of Ballard, commented, "This is a truly transformative acquisition that establishes Ballard as a leading, fully integrated hydrogen ecosystem provider and positions us to capitalize on the accelerating global energy transition and increasing demand for energy resilience. GeoPura's exceptional team has built a best-in-class hydrogen power solutions business with reliable technology, blue-chip customer relationships, and an attractive growth trajectory. By combining Ballard's world-class fuel cell technology with GeoPura's energy-as-a-service business model, we create a Company well-positioned to serve end-markets demanding secure, reliable, low noise, and emissions free power for their mission-critical applications. This acquisition significantly accelerates our revenue growth, shifts our business toward recurring, high-margin revenues and reinforces our path to profitability by 2028. We're excited to welcome the GeoPura team to Ballard and to execute on the significant opportunities ahead."
Andrew Cunningham, Founder and Chief Executive Officer of GeoPura, commented, "When your work powers film and live television, hospitals, defence, essential infrastructure, and construction with reliable off-grid and grid-support systems, your engine supplier is central to your success. For GeoPura, Ballard has stood head and shoulders above the rest. They are the only partner able to deliver the fuel cell capabilities we need, backed by the deep engineering expertise required to ensure unbeatable product quality from kilowatt to megawatt. I am incredibly excited to combine GeoPura's high-performance capabilities with Ballard's product excellence, giving customers worldwide the best value from our fully integrated energy-as-a-service offering."
GeoPura Chairman, Lord Richard Harrington, former Business and Industry Minister and Chair of Make UK said, "Ballard's investment reflects its confidence in a UK manufacturing business using UK technology that will now be exported around the world. I am excited by the company's global expansion plans and look forward to supporting them on this journey."
COMPELLING STRATEGIC RATIONALE
Building an Ecosystem with a Bundled Offering: By combining Ballard's fuel cell technology with GeoPura's integrated hydrogen production, logistics, and stationary power capabilities, the Company maximizes revenue per megawatt through multiple customer touchpoints. This results in a significant increase in lifetime value capture of each megawatt deployed. Access to Stationary Power Market with Proven Product Portfolio: Establishes Ballard's entry into the high-growth stationary power market with an immediately deployable and proven hydrogen genset product suite delivering "six nines" reliability (99.9999% uptime) and well-established customer base. GeoPura's HPUs serve construction, film and television, events, transportation, healthcare, defence, and potentially the rapidly expanding data centre applications, positioning Ballard to capture these growing markets globally. Accelerating Growth and Profitability: GeoPura's business model generates recurring revenues from HPU leasing with hydrogen supply and logistics, alongside HPU and hydrogen sales. GeoPura expects 2026 revenue to be approximately £38 million. Together with Ballard, the large total addressable market and secular tailwinds reshape Ballard's financial profile into an EaaS operator with accelerated growth and a clearer pathway to Ballard's 2028 profitability target. Unlocking Total Addressable Market Growth with Supportive Policy Environment: GeoPura's stationary power platform expands Ballard's addressable market beyond mobility and into high-growth end-markets where HPUs serve as mission-critical power infrastructure. GeoPura also holds the UK government's inaugural Hydrogen Allocation Round 1 (HAR1) contract, a subsidy mechanism guaranteeing hydrogen production revenues over fifteen years, providing substantial revenue visibility. This policy support, combined with GeoPura's 50% ownership of the HyMarnham hydrogen production facility and its capitally efficient expansion capacity, uniquely positions Ballard to expand its market reach and capitalize on accelerating decarbonization mandates and critical power demands globally. Highly Synergistic: The longstanding Ballard-GeoPura technology partnership provides a proven foundation upon which to grow the business and integrate the two highly complementary teams. Ballard will achieve structural cost advantages that enhance competitive positioning while creating demand pull-through within HPU end-markets. Approximately US$25 million in high-confidence run-rate EBITDA synergies have been identified, driven by revenue expansion and cost optimization. GeoPura's experienced management team strengthens execution and accelerates value realization. TRANSACTION TERMS AND FINANCING DETAILS
Under the terms of the Agreement, Ballard will acquire 100% of GeoPura, including GeoPura's 50% ownership in HyMarnham Power, for total Upfront Consideration of £275.0 million. The Upfront Consideration will be funded with £82.5 million in Ballard cash on hand, with the remainder to be funded through newly issued Ballard common shares provided to GeoPura shareholders, thereby maintaining Ballard's strong balance sheet. The number of Ballard shares to be issued to GeoPura shareholders is ~50.8 million, calculated based on a 30-day volume-weighted average price of Ballard common shares preceding announcement of the Transaction. Upon closing of the Transaction, GeoPura shareholders are expected to own approximately 14.4% of Ballard on a pro-forma basis. GeoPura shareholders will also enter into customary lock-up agreements restricting the sale or transfer of their Ballard common shares for a specified period following the closing of the Transaction.
In addition to the Upfront Consideration, Ballard will pay contingent consideration of up to £27.5 million if GeoPura achieves certain financial milestones after closing of the Transaction.
The total transaction enterprise value1, including assumption of GeoPura net debt and excluding contingent consideration, is £301.1 million (~US$400 million).
ADDITIONAL DETAILS AND CLOSING
Following completion of the Transaction, GeoPura's Founder and Chief Executive Officer, Andrew Cunningham, is expected to assume the role of President of Ballard, reporting to Marty Neese, as Ballard's Chief Executive Officer. Additionally, Ballard expects to include Andrew Cunningham and Lord Richard Harrington, current Chairman of GeoPura, as nominees to its Board of Directors, designated by GeoPura shareholders.
The Transaction has been unanimously approved by the Board of Directors of both Ballard and GeoPura and is subject to customary closing conditions for a transaction of this nature, including UK National Security and Investment Act filing and the approval of the TSX for the issuance of the Ballard common shares pursuant to the Transaction. The Transaction is expected to close in the second half of 2026.
ADVISORS
RBC Capital Markets is serving as exclusive financial advisor to Ballard. Ashurst LLP and Stikeman Elliott LLP are serving as legal counsel to Ballard.
Barclays is serving as exclusive financial advisor to GeoPura and Winston Taylor LLP is serving as legal counsel to GeoPura.
CONFERENCE CALL AND WEBCAST
Ballard will host a webcast June 23, 2026 at 11:00am E.T. to discuss the Transaction. Marty Neese, President and Chief Executive Officer of Ballard, Kate Igbalode, Senior Vice President and Chief Financial Officer of Ballard, and Andrew Cunningham, Founder and Chief Executive Officer of GeoPura, will present on the webcast. The live call can be accessed by dialing +1-833-821-2814 (Canada/US toll free). Alternatively, a live webcast can be accessed through a link on Ballard's homepage (www.ballard.com) or the following link: Announcement Conference Call
About Ballard Power Systems
Ballard Power Systems' (NASDAQ: BLDP; TSX: BLDP) vision is to deliver fuel cell power for a sustainable planet. Ballard zero-emission PEM fuel cells are enabling electrification of mobility, including buses, commercial trucks, trains, marine vessels, and stationary power. To learn more about Ballard, please visit www.ballard.com.
Cautionary Statements Regarding Forward-Looking Information
This press release contains certain information that may constitute "forward-looking information" within the meaning of applicable Canadian Securities laws and "forward-looking statements" within the meaning of applicable U.S. securities laws (together, "forward-looking statements"). Often, but not always, forward-looking statements can generally be identified by the use of forward-looking words such as "may", "will", "expect", "intend", "plan", "estimate", "anticipate", "continue", and "guidance", or other similar words and may include, without limitation, statements regarding the Transaction, its terms and completion thereof, the benefits of the Transaction to Ballard shareholders and other stakeholders, plans, strategies and objectives of management and expected costs or production outputs. There can be no assurances that the Transaction will be completed on the terms set out in this press release or at all. Forward-looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company's actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, receipt of necessary regulatory approvals of the Transaction, foreign exchange rate fluctuations, general economic conditions, increased costs, political and social risks, changes to the regulatory framework within which the Company operates or may in the future operate, environmental conditions, recruitment and retention of personnel and potential litigation. Forward-looking statements are based on the Company's and its management's good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company's business and operations in the future. The Company does not give any assurance that the assumptions on which forward-looking statements are based will prove to be correct, or that the Company's business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or its management or beyond the Company's control. Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward-looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward-looking statements. Forward-looking statements in this press release speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the Company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in events, conditions or circumstances.
Contact Information
Sumit Kundu – Investor Relations, +1.604.360.9714 or [email protected]
1Including assumption of 50% of the debt associated with the HyMarnham joint venture.
Robinhood (HOOD) received a big price-target hike from a Wall Street firm a day after revealing hefty job cuts. Robinhood stock soared above a long-term level for the first time in months.
On Wednesday, Argus analyst Stephen Biggar raised his price target on HOOD stock by 22% to $110, according to TheFly.com. Biggar kept a buy rating on shares a day after Robinhood announced a 10% workforce reduction. Additionally, analysts at Deutsche Bank on Wednesday raised the price target on Robinhood stock by $2 to $105.
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Robinhood Layoffs Spark Hikes For HOOD Stock On Tuesday, Robinhood filed a Form 8-K disclosing it's firing roughly 290 staffers. The firm said it is "taking this action from a position of business strength, including June month-to-date average daily trading volumes at record levels across equities, options, and prediction markets." Robinhood added it will close "a small number of open roles" as well.
Simultaneously, Robinhood warned of a roughly $28 million charge against Q2 earnings, tied to restructuring and severance costs.
But Wall Street firms raised price targets on Wednesday as they factored annual compensation savings into their financial models. Corporate layoffs often reflect a financial weakening in a company, but Robinhood claims the opposite is true in this case.
Robinhood Stock Makes Bullish Move Shares of the popular zero-fee trading app soared 8.8%, closing above 105 on the stock market today. Robinhood stock punched above resistance at its 200-day moving average in big volume, clearing that key level for the first time since January, the MarketSurge charts show.
The cuts announced this week marked Robinhood's first major layoffs in three years.
The financial technology company cited the need to remain "lean and disciplined." Management refrained from tying the job cuts to artificial intelligence, as other companies have done in recent months.
A week ago, HOOD stock popped on the firm's entry into the IPO underwriting business.
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Futures Rise After Fed-Led Tumble; SpaceX Falls As Robinhood Jumps
Shares of Robinhood (NASDAQ:HOOD | HOOD Price Prediction) are surging in midday trading on Wednesday, June 17, with the stock up 12% to roughly $109. The retail-brokerage leader is rallying on a combination of cost discipline and a continued tape of record customer activity.
The catalyst: a significant workforce reduction aimed at streamlining the business, even as Robinhood logs record-breaking volumes across equities, options, and prediction markets. A Reddit post in r/stocks captured the mood early, titled “HOOD just cut 10% of its staff into a stock near my fair value.”
Peer Webull (NASDAQ:BULL) stock is moving in sympathy, climbing 8% to around $7.26. There’s no Webull-specific news driving the move, just sector enthusiasm pulling the other online broker higher.
Workforce Cut Meets Record Trading Volumes Investors are rewarding Robinhood’s efficiency push. The restructuring reportedly trims about 10% of jobs, yet management says it plans to keep investing in technology and top talent to sustain growth.
The backdrop helps. In Q1 2026, Robinhood’s equity notional trading volumes climbed 54% YoY to $638 billion, the margin book hit a record $17 billion, and event contracts traded reached a record 8.8 billion. Moreover, Robinhood’s net deposits of $17.7 billion ran at a 22% annualized growth rate.
CEO Vlad Tenev framed the strategy on the last call, asserting, “Driven by our relentless product velocity and innovation, Robinhood is increasingly positioned at the center of our customers’ financial lives, just as we enter the early innings of the Great Wealth Transfer.” Cutting headcount while volumes surge is the kind of operating leverage story the market typically pays up for.
Deutsche Bank Lifts Target, But Shares Trade Above It Wall Street’s support added fuel to the rally. For instance, Deutsche Bank raised its price target on Robinhood to $105, citing the company’s strong market position and product innovation (though HOOD stock is already trading near $109, so the raised target sits below the current share price).
The broader analyst panel is constructive. Alpha Vantage data shows 4 Strong Buy, 16 Buy, 4 Hold, and 3 Sell ratings, with a consensus target of $100.86. Robinhood stock carries a forward P/E ratio of 50x and a beta of 2.3, underscoring just how volatile this name can be.
Prediction market traders are leaning in. On Polymarket, the intraday “HOOD Up or Down on June 17” market is pricing a 99% probability of a green close today. The weekly market pegs $110 as the dominant outcome through expiration on June 19.
Webull Rides the Sector Wave Webull stock is the clear sympathy beneficiary. The stock remains down 30% over the past year, reflecting how volatile this small-cap broker has been.
Webull’s own fundamentals support the narrative. Q1 2026 revenue of $160 million grew 36% YoY, equity notional volume jumped 104% YoY to $261 billion, and daily average revenue trades (DARTs) hit an all-time high of 1.3 million. Webull CEO Anthony Denier stated, “The demand from sophisticated, self-directed investors, including institutional and B2B clients, has never been greater.”
A regulatory tailwind sits in the background, too. The FINRA Pattern Day Trader rule change, effective June 4, is widely viewed as supportive for active-trading platforms like Webull and Robinhood.
What to Watch Now HOOD stock and BULL stock have shown a tendency to swing hard on volume. Robinhood shares are now trading above the $100.86 consensus target and the $80.83 50-day moving average, so any follow-through could face resistance.
Robinhood’s bull case rests on cost discipline plus record activity equaling expanded operating leverage. The bear case, voiced in r/WallStreetBets and r/options threads earlier today, questions whether the workforce cut signals cooling momentum rather than confident scaling. Both interpretations are defensible.
Investors may want to keep their position sizes modest given the volatility profile here. Watch for whether HOOD holds above $105 and whether Webull stock can sustain its sympathy bid once Robinhood’s tape stabilizes.
Robinhood Markets (HOOD 0.69%), a commission-free retail brokerage and multi-asset investing platform, closed at $105.20, up 8.78%. On Wednesday, the company announced a planned 10% workforce reduction and record June month-to-date volumes, prompting analysts to raise price targets. Trading volume reached 69.9M shares, coming in about 128% above its three-month average of 30.6M shares. Robinhood Markets IPO'd in 2021 and has grown 202% since going public.
How the markets moved todayThe S&P 500 fell 1.19% to 7,422, while the Nasdaq Composite dropped 1.34% to 26,022. Among retail brokerage and fintech financial services peers, Interactive Brokers Group rose 2.14% to $95.09, while The Charles Schwab added 0.90% to $94.51, highlighting a mixed session for brokerage names.
What this means for investorsOn Wednesday, Robinhood announced it would reduce its headcount by 10%, stating that it “is taking this action from a position of strength.” The company went on to report that June month-to-date volumes were at record levels across equities, options, and prediction markets, lending credence to the notion that the workforce reduction isn’t necessarily a reactive move but rather a proactive one.
Following these news items, an analyst at Argus raised their price target on Robinhood from $90 to $110, while a couple of other investment firms also inched their price targets higher. While HOOD stock trades at a slightly lofty 52 times forward earnings, it grew sales by 15% and Gold subscribers by 34% in its latest quarter. Immensely popular among younger generations, Robinhood could be a great investment if it can grow alongside its young user base.
Charles Schwab is an advertising partner of Motley Fool Money. Josh Kohn-Lindquist has positions in Robinhood Markets. The Motley Fool has positions in and recommends Interactive Brokers Group. The Motley Fool recommends Charles Schwab and recommends the following options: long January 2027 $43.75 calls on Interactive Brokers Group, short January 2027 $46.25 calls on Interactive Brokers Group, and short June 2026 $97.50 calls on Charles Schwab. The Motley Fool has a disclosure policy.
An article concerning a development that could benefit Robinhood Markets (HOOD 0.69%) helped boost the price of the next-generation brokerage on Wednesday. Investors took the report as excellent news for the financial services company and reacted by pushing its shares up almost 9%.
The digital future Well before market open, Reuters reported that the Securities and Exchange Commission (SEC) is preparing a policy allowing cryptocurrency companies to transact in crypto products such as tokenized stocks.
Image source: Getty Images.
Citing unnamed "analysts and lawyers," the news agency added that SEC chair Paul Atkins will formally announce the policy in the near future. Tokenized stocks, which are digital assets that sit on blockchains and are tied to actual shares of companies, can be traded outside of market hours and settled near-instantaneously, among other advantages over traditional equity transacting.
Atkins has proposed an "innovation exemption" framework under which the intermediaries typical in securities trading can be bypassed under certain circumstances. This would allow for that direct and immediate transacting promised by tokenized stocks.
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Waiting for the green light Unlike some of the more established brokerages, Robinhood began embracing crypto trading years ago. It's very much a tech-forward company, to the point where it already operates a trading platform for tokenized stocks. Unfortunately for enthusiasts of such products in the U.S., this isn't fully legal in the U.S.; this service is only available for European Union (EU) clients.
At least, not yet. Should that change, as per the Reuters report, Robinhood would undoubtedly score a win. I don't blame investors for piling into the stock on that possibility.
Eric Volkman 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.
Robinhood Markets (HOOD 0.69%) was one of five brokerages chosen to offer Space Exploration Technologies (SpaceX) in its record-shattering initial public offering (IPO) last week. Robinhood stock is 36% off its highs, but it's up more than 6% since the IPO. Can SpaceX breathe new life into Robinhood stock?
What SpaceX IPO access does for Robinhood Robinhood was the original fee-free trading app, setting a trend for the broader investing community. It's been at the forefront of fintech innovation, helping to level the playing field for retail investors and providing access to different types of instruments that are usually left to institutional investors.
It's not surprising that it offers IPO access, another area where retail investors have historically been left out while early investors took home gains. And unlike other brokerages that offer IPO access, it doesn't require a minimum balance or net worth.
Image source: Getty Images.
Offering access to the SpaceX IPO is a natural progression for Robinhood, and it may have onboarded new investors to its platform who were interested in taking part. Having this new cadre of users gives Robinhood the opportunity to convert them into engaged members who adopt other products as well.
It's more than SpaceX SpaceX stock offers value to Robinhood, but there's still a lot more going on. The main reason Robinhood stock is down is that it's highly correlated with cryptocurrency, which plays a large role in its growth -- or decline. Bitcoin (BTC 4.15%) is down 38% over the past year, and Robinhood's cryptocurrency revenue fell 47% from last year in the first quarter.
It also has several other risky businesses, including options trading and prediction markets. Prediction markets revenue increased 320% in the first quarter, but like cryptocurrency, that could be highly volatile.
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The company has also been moving into more typical financial services, like credit cards and bank accounts. More recently, Robinhood received approval to underwrite stocks, which is a huge step for the trading platform. Underwriting is the domain of investment banks, and Robinhood has huge ambitions to expand into all sorts of directions. Investment banks play an important role in markets, which provides Robinhood with greater stability.
The long-term play The SpaceX IPO won't be enough to rescue Robinhood stock, but the innovative force behind it makes it a stock worth considering. If the platform expands enough that the more stable products offset the risk of the other products, it could be a formidable player on the fintech scene over the long term.
It's not the right fit for the conservative investor, or even most investors, but if you have a high risk tolerance and a long time horizon, a small position in Robinhood stock is reasonable.
