Shares of Rackspace Technology RXT climbed about 16% in trading on Tuesday after the cloud services provider announced a major infrastructure agreement with Advanced Micro Devices and announced a 15% cut in its global workforce.
The company said it has signed a definitive agreement with AMD for the phased deployment of up to 30 megawatts of dedicated compute capacity across Rackspace's global data-center footprint.
The rollout is expected to begin in late 2026 and continue through 2028.
The partnership is designed to support enterprise AI workloads, particularly in highly regulated industries such as healthcare, where demand for AI-powered applications and large-scale inference capabilities continues to rise.
At full deployment, the dedicated AMD infrastructure is expected to provide substantial computing capacity for customers seeking governed AI environments.
“Enterprises in regulated industries need AI infrastructure that is governed from the ground up, with one operator accountable for business outcomes, not a collection of vendors each owning a piece," said Gajen Kandiah, chief executive officer of Rackspace Technology.
AMD also highlighted the growing need for flexible AI infrastructure among enterprise customers.
“As enterprise AI evolves, customers need infrastructure that can deliver the right mix of accelerated and general-purpose compute for each workload,” said Dan McNamara, senior vice president and general manager of Compute and Enterprise AI at AMD.
Alongside the AMD announcement, Rackspace disclosed a "workforce realignment plan" that will eliminate approximately 15% of its global workforce.
The company said the restructuring is intended to support its strategic transformation into what it describes as an operator for governed enterprise AI.
According to a regulatory filing, the changes will primarily affect legacy service delivery functions, particularly within the company's Public Cloud business, while resources will be redirected toward AI-focused operations.
"This realignment is predominantly driven by the Company's strategic decision to deemphasize certain legacy service delivery functions ... and geographic rationalizations in favor of redeploying resources toward its enterprise AI buildout," Rackspace said.
Most affected employees were notified around June 10, with additional workforce reductions expected over the next six months, depending on local regulations and job functions.
Rackspace estimates one-time restructuring costs of between $14 million and $19 million, largely tied to severance payments, healthcare benefits, and other employee-related expenses.
However, management expects the plan to generate annualized run-rate savings of approximately $75 million to $85 million once fully implemented.
The announcements come amid a dramatic turnaround in investor sentiment toward Rackspace.
Shares have surged more than 500% so far in 2026 as investors increasingly focus on the company's AI cloud ambitions.
Even after the rally, however, the stock remains well below levels reached following its return to public markets in 2020 under Apollo Global Management.
The latest partnership also follows AMD's recent acquisition of memory optimization company MEXT, a move aimed at addressing rising memory costs associated with AI computing.
AMD shares have more than doubled this year as demand for AI processors continues to accelerate.
For Rackspace, the AMD agreement represents another step in repositioning the company away from traditional cloud management services and toward enterprise AI infrastructure.
Investors appeared encouraged by both the growth potential of the AMD partnership and the expected cost savings from the workforce overhaul, sending the stock sharply higher ahead of Tuesday's opening bell.
Advanced Micro Devices AMD shares climbed about 2% in early Tuesday trading after the chipmaker said it acquired MEXT, a company focused on AI-driven memory optimization technology.
AMD said the deal is aimed at addressing memory constraints that have become a growing challenge for AI and data-intensive workloads. Limited memory access can affect performance and increase operating costs as computing demands rise.
AMD said MEXT's technology helps flash storage function more like DRAM, a form of high-speed memory commonly used in servers and computing systems. The company expects the addition to strengthen its AI and data center offerings.
AMD also said MEXT's engineering team will join the company, providing expertise that could support future expansion across enterprise and cloud computing markets. The acquisition is part of AMD's broader effort to enhance infrastructure for AI applications.
Advanced Micro Devices (AMD - Free Report) closed the most recent trading day at $507.29, moving -7.3% from the previous trading session. This move lagged the S&P 500's daily loss of 0.57%. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, lost 1.15%.
The stock of chipmaker has risen by 29.99% in the past month, leading the Computer and Technology sector's gain of 2.85% and the S&P 500's gain of 2.14%.
Investors will be eagerly watching for the performance of Advanced Micro Devices in its upcoming earnings disclosure. On that day, Advanced Micro Devices is projected to report earnings of $1.6 per share, which would represent year-over-year growth of 233.33%. At the same time, our most recent consensus estimate is projecting a revenue of $11.27 billion, reflecting a 46.67% rise from the equivalent quarter last year.
For the full year, the Zacks Consensus Estimates project earnings of $7.21 per share and a revenue of $48.72 billion, demonstrating changes of +72.9% and +40.65%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Advanced Micro Devices. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.01% upward. Advanced Micro Devices currently has a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Advanced Micro Devices has a Forward P/E ratio of 75.86 right now. This denotes a premium relative to the industry average Forward P/E of 27.36.
Investors should also note that AMD has a PEG ratio of 1.38 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Computer - Integrated Systems was holding an average PEG ratio of 1 at yesterday's closing price.
The Computer - Integrated Systems industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 14, placing it within the top 6% of over 250 industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Nokia announces major expansion of U.S. semiconductor advanced test and packaging in Pennsylvania to bolster AI growth
Nokia expands U.S.-based advanced test and packaging operations, critical to the production of photonic chips that will power AI-native networks, with lower power consumption and greater operational efficiency. Investment strengthens U.S. domestic production of critical optical networking technologies powering AI infrastructure.Announcement is part of Nokia's multi-year plan to invest $4 billion in R&D and manufacturing in the U.S. for AI-ready network connectivity. 16 June 2026
Allentown, Pennsylvania – Nokia today announced a major expansion of its advanced test and packaging (ATP) operations in Allentown, Pennsylvania. The investment will increase domestic production capacity of the optical networking technologies that power scalable AI infrastructure connectivity across the United States. The expansion is expected to nearly double Nokia’s Pennsylvania workforce to more than 500 jobs in engineering, manufacturing, and R&D, while generating a projected economic impact of more than $500M over the next five years.
Today, less than two percent of global semiconductor ATP takes place in the U.S. Nokia’s Allentown facility is one of only a few in the U.S. providing ATP of photonic chips into optical modules for use in AI and telecom infrastructure. Through investment in new manufacturing equipment and an expanded manufacturing footprint, Nokia is increasing the site’s production capacity by up to 10 times its current level, with new capacity expected to be commercially available by the end of the third quarter.
Nokia’s optical technologies provide advanced connectivity solutions for telecom networks to enable AI infrastructure and can reduce energy usage by as much as 75 percent. Nokia’s investment results in the domestic manufacturing of components used in AI infrastructure, creates new jobs, and significantly reduces energy usage in AI communications.
“The AI supercycle is fundamentally reshaping network and infrastructure requirements in the U.S. and globally. Our expansion in Allentown is a direct investment in that future—scaling domestic manufacturing of the optical networking technologies that power AI infrastructure. It also reflects the strong partnership between Nokia, the United States, and the Commonwealth of Pennsylvania to support advanced manufacturing, create jobs, and strengthen U.S. technology leadership and global competitiveness,” said Justin Hotard, President and CEO of Nokia.
“Nokia is doubling down on the Lehigh Valley and ensuring that the future of chip production continues to run through this region because we’ve made smart investments to make Pennsylvania more competitive and proven that our Commonwealth is a great place to do business,” said Governor Shapiro. “As demand for semiconductors continues to grow across industries, we’ll continue to position Pennsylvania as a leader in innovation, with a supportive, thriving business climate that helps companies compete on a global scale. From advanced manufacturing to the research and development of new technology like advanced chip packaging, Pennsylvania has all the resources to be a world leader in chip production.”
“This is great news for Pennsylvania. Nokia is doubling its local workforce to more than 500 good-paying jobs in engineering, manufacturing, and R&D, all while expanding our ability to domestically produce the critical technologies that power AI infrastructure. This matters for both our economy and our national security,” said Senator Dave McCormick. “These technologies also help cut energy use in AI communications, showing that we can lead on innovation while also smartly managing our resources at the same time.”
“Nokia’s investment in Pennsylvania is directly advancing America’s AI leadership,” said Bill Frauenhofer, Executive Director of Semiconductor Investment and Innovation at the Department of Commerce. “Supported by CHIPS and Science Act funding, Nokia is deepening its commitment to innovation and the production of photonic chips in the United States. This project enables critical optical technology and strengthens America’s semiconductor supply chain.”
“Nokia’s latest investment is further proof that the Lehigh Valley is becoming a world leader in advanced manufacturing,” said U.S. Congressman Ryan Mackenzie. “With the help of our unparalleled, highly-skilled workforce, Nokia’s local expansion will help our region continue to drive innovation and build the tools behind next-generation technologies. Congratulations to Nokia and the hundreds of local workers who will benefit from this investment.”
The investment includes approximately $30 million from Nokia, which includes bipartisan support of approximately $4 million in assistance from the state of Pennsylvania and approximately $10 million in federal CHIPS investment tax credit. This expansion is part of Nokia's multi-year plan to invest $4 billion in R&D and manufacturing in the U.S. for AI-ready network connectivity. It is designed to bolster domestic supply chains for critical communications infrastructure, reinforce U.S. leadership in the technologies shaping the global AI economy and solidify Pennsylvania’s growing role as a hub for advanced manufacturing, telecommunications technology and AI infrastructure.
About Nokia
Nokia is a global leader in connectivity for the AI era. With expertise across fixed, mobile, and transport networks, we’re advancing connectivity to secure a brighter world.
Alibaba is moving deeper into robots and AI agents, marking a sharp turn in the artificial intelligence race that was dominated only recently by chatbots.
The Chinese e-commerce and cloud giant on Tuesday unveiled its first full suite of AI models built for robots, a move that signals where large technology companies now see the next commercial prize.
Chatbots helped consumers talk to machines and Alibaba now wants machines to act in the real world.
The shift signals a broader change for investors, developers and businesses, as AI’s centre of gravity moves from conversation to execution.
The chatbot boom was built around one powerful idea: ask a question and get a useful answer.
That changed search, customer service, coding and office work. But it also left limits as most chatbots still wait for a human prompt.
They respond, explain, summarise or draft. They rarely complete an entire job on their own.
AI agents are designed to go further. They can plan, use tools, call other software, remember steps and complete multi-stage tasks with less supervision.
In simple terms, chatbots answer questions; agents run workflows. That could mean booking a flight, preparing a sales report, managing supplier orders, updating spreadsheets, or coordinating a factory process.
This is why Alibaba’s pivot matters. It is not just adding another model to a crowded chatbot market, but trying to build AI that can plug into commerce, logistics, cloud services and industrial systems.
Marc Einstein, research director at Counterpoint Research, told CNBC that AI agents could “upend traditional Internet business models,” warning that “if this happens the consequences for those who are not prepared will be severe.”
Alibaba is not alone as ByteDance, Zhipu AI, Baidu and other Chinese AI players are also pushing beyond chatbots, showing that this is becoming an industry-wide reset rather than one company’s experiment.
Alibaba’s new robot AI models are aimed at giving machines a better understanding of the physical world.
That means helping robots identify objects, understand space, plan movements and carry out tasks in environments such as kitchens, warehouses and factory floors.
The push builds on earlier work from DAMO Academy, Alibaba’s research arm, including RynnBrain, an embodied AI model designed for physical reasoning, navigation and task planning.
In simple words, this is AI that is not limited to text on a screen, but is meant to help machines see where things are, understand what they are for, and decide what to do next.
Alibaba has also been strengthening the software and hardware stack around this strategy.
Its Qwen3.7-Max model, introduced in May, was built for the “agent era” and is designed to handle long, complex tasks.
Alibaba said the model sustained a 35-hour autonomous run involving more than 1,000 tool calls, a sign that the company is trying to improve reliability over long workflows rather than just chatbot fluency.
The company has also unveiled the XuanTie C950, a 5-nanometre RISC-V processor designed for agentic AI workloads.
That matters because agents are more demanding than chatbots as they need memory, coordination and repeated interaction with tools and data systems.
Alibaba’s broader pitch is that it can operate across the whole AI chain: chips, cloud infrastructure, foundation models, platforms and consumer or enterprise applications.
That gives it a route to monetise AI in more places than a standalone chatbot app.
CEO Eddie Wu has framed the opportunity in sweeping terms, arguing that there may one day be more agents and robots than people.
Alibaba (BABA, Financials) is moving its AI push beyond chatbots and into robotics. The company launched a new group of AI models built to help robots understand the physical world and complete real-life tasks.
That could include work in factories, warehouses, delivery systems or other business settings where automation is becoming more important.
The move shows where the AI race is heading next. Companies are no longer focused only on text, images and digital assistants. They are also trying to bring AI into machines that can see, move and act in the real world.
For Alibaba, robotics could become another way to use its AI research across commerce, logistics and cloud customers. The opportunity is still early, but it fits naturally with the company's large e-commerce and supply chain businesses.
For investors, the key question is whether Alibaba can turn these models into practical products and paying customers, not just research headlines.
Alibaba Group Holding Limited (NYSE:BABA) traded lower on Tuesday due to company-specific pressure from regulatory warnings and U.S. geopolitical scrutiny.
Regulatory And US Scrutiny Pressure AlibabaAlibaba fell almost 3% as traders weighed increased public scrutiny from Chinese regulators over e-commerce promotions and broader concerns about price wars among China’s internet giants.
Investors are watching whether competition forces retailers to absorb losses and adds pressure to China’s consumer economy.
Alibaba also remains on a U.S. Pentagon list that blocks the Defense Department from contracting directly with listed companies starting later this month and bars third-party procurement beginning in June 2027.
RobotSuite Adds Longer-Term AI AngleAlibaba also announced a new RobotSuite push tied to the Qwen model family. Qwen said RobotSuite aims to help developers build and test robot capabilities faster by packaging tools and workflows around its models.
The update positions robotics as a next-step use case for large models, though traders may view it as a longer-term investment theme rather than an immediate earnings driver.
Technical AnalysisAt $110.00, Alibaba is still in a clear longer-term downtrend, trading 12.1% below its 20-day SMA ($124.81) and 26.6% below its 200-day SMA ($149.53). That “below every major average” setup often keeps rebounds choppy because overhead supply shows up quickly near prior breakdown zones.
The moving-average structure is also bearish: the 20-day SMA is below the 50-day SMA, and the stock has been in a death cross regime since April (with the 50-day SMA below the 200-day SMA). For momentum, the MACD is below its signal line with a negative histogram, suggesting upside pressure is fading from its recent baseline unless buyers can force a trend shift.
From a levels standpoint, the stock is hovering not far above the lower end of its 52-week range ($103.71 low vs. $192.67 high), with a recent swing low in June still shaping trader psychology. A push back toward resistance would need follow-through strong enough to start reclaiming moving averages, not just a one- or two-day bounce.
Earnings & Analyst OutlookLooking further out, the next major catalyst for the stock arrives with the August 28, 2026 (estimated) earnings report.
EPS Estimate: $2.51 (Up from $2.06 YoY) Revenue Estimate: $38.72 Billion (Up from $34.57 Billion YoY) Valuation: P/E of 17.3x (Suggests fair valuation relative to peers) Top ETF ExposureSignificance: Because BABA carries significant weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.
Price Action
BABA Stock Price Activity: Alibaba shares were down 2.96% at $109.22 at the time of publication on Tuesday, according to Benzinga Pro data.
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Citigroup, Inc. (C - Free Report) is experiencing significant momentum with shares recently trading at its highest level in nearly 17 years touching $141.21 in yesterday’s trading session.
The rally reflects renewed investor confidence, driven by improving financial performance and the company's ongoing restructuring efforts. In addition, Citigroup's recent moves, including the sale of its Polish consumer banking business and an increased focus on blockchain-based trading technologies have reinforced optimism about the company's long-term growth prospects, further supporting the stock's recent advance.
Investor sentiment also received a boost from a preliminary U.S.-Iran peace agreement, which lifted financial stocks broadly. The geopolitical development eased concerns over inflation and reduced pressure on interest rates, creating a more favorable environment for banks like Citigroup, Bank of America (BAC - Free Report) and Wells Fargo ((WFC - Free Report) ).
Over the past year, C shares have surged 82.5%, significantly outperforming the industry’s growth of 32.2%. Among its peers, Bank of America shares have risen 26.3% and Wells Fargo has gained 14.7% over the same period.
Price Performance
Image Source: Zacks Investment Research
Following such a sharp run-up, investors are questioning whether Citigroup’s stock still offers meaningful upside or if much of the optimism is already reflected in the stock price. Let us assess C’s investment potential in more detail.
Citigroup’s Performance CatalystsStrategic Transformation: CEO Jane Fraser continues to advance the company’s multi-year strategy to streamline operations and focus on its core businesses. The company announced plans in April 2021 to exit consumer banking in 14 markets across Asia and EMEA.
This week, Citigroup's subsidiary, Bank Handlowy w Warszawie S.A., operating under the Citi Handlowy brand, announced the completion of the sale of its consumer banking business in Poland to VeloBank S.A. This marks the final divestiture of the company's international consumer businesses, excluding the largely completed wind-downs and the well-advanced Banamex divestiture.
As part of this repositioning, the company has made significant progress in Mexico. In April 2026, the company completed the sale of a 22.6% stake in Banamex, following the divestiture of a 25% stake in December 2025, and continues to prepare for a planned initial public offering of its Mexican consumer, and small and middle-market banking businesses.
The company has also streamlined other international operations. In February 2026, Citigroup completed the sale of AO Citibank to Renaissance Capital, completing its exit from Russia. The company had previously divested its China-based onshore consumer wealth portfolio to HSBC China in June 2024 and continues to advance the wind-down of its Korea consumer banking operations.
Speaking at the 2026 Morgan Stanley U.S. Financials Conference, chief financial officer Gonzalo Luchetti emphasized that the bank moved beyond the most intensive phase of its simplification and transformation program and is now positioned to deliver stronger, more sustainable performance.
These initiatives will free up capital and help the company pursue investments in wealth management and IB operations, which will stoke fee income growth. Supported by these initiatives, Citigroup expects revenues to see a 4-5% compound annual growth rate (CAGR) through 2026.
For 2026, the company is targeting 10-11% return on tangible common equity (RoTCE). C expects to reach 11-13% RoTCE, excluding notable items in 2027 and 2028, and then move toward 14-15% RoTCE over the medium term, defined as 2029 to 2031. This outlook reflects management’s belief that C’s business model is becoming simpler, more efficient and better able to translate revenue growth into shareholder value.
Cost-Optimization Initiatives: The company is executing on its plan to cut 20,000 jobs by 2026 and has already reduced headcount by more than 10,000 employees, while focusing on process streamlining and automation to reduce manual touchpoints. Citigroup is increasingly deploying artificial intelligence (AI) tools to support these efforts.
Citigroup plans to invest $5 billion incrementally from 2026 through 2028. These investments will focus on technology, marketing, front-office talent and branch renovations. During the Morgan Stanley 2026 conference, Citigroup’s management highlighted that AI is already producing measurable benefits across the company. In customer service, Citigroup has reduced call times by about 60 seconds using generative AI, while CitiDirect agents have improved containment rates by roughly 50%. In credit cards, AI and machine learning have helped improve approval rates by about 100 basis points. The bank is also continuing to invest in targeted growth areas, including markets, investment banking, wealth, cards and services.
Management also emphasized operating efficiency and cost control, even as it continues investing in growth. Over the near term, Citigroup expects the ratio to decline to 55-60%, excluding notable items, with a medium-term goal of below 55%. Improvement is expected to come from lower transformation costs, reduced stranded costs as Legacy Franchises are exited, productivity gains from prior investments and AI-enabled process re-engineering. Some of these savings will be reinvested in technology, talent and growth initiatives.
Interest Rate Outlook Remains Supportive: NII has been a key contributor to Citigroup’s earnings power, and management expects growth to continue despite a shifting rate environment. Following the initial easing in 2024 and three subsequent rate cuts in 2025, the Federal Reserve has kept interest rates steady so far in 2026. Hence, Citigroup’s NII will continue to grow, given stabilizing funding/deposit costs and improving loan demand.
In first-quarter 2026, NII increased 12% year over year, while NII, excluding Markets, rose 7%. Management expects NII, excluding Markets, to increase 5-6% year over year in 2026.
Liquidity Strength Powers Shareholder Payouts: C enjoys a strong liquidity position. As of March 31, 2026, Citigroup’s cash and due from banks and total investments aggregated to $467.8 billion, while its total debt (short-term and long-term borrowing) was $379.6 billion.
Post-clearing the 2025 stress test, the company hiked its dividend 7.1% to 60 cents per share. In the past five years, it has raised its dividends three times. It has a payout ratio of 26%. The company has a dividend yield of 1.72%. Wells Fargo has raised its dividend six times in the past five years, while Bank of America has increased its dividend five times in the past five years.
In January 2025, Citigroup's board of directors approved a $20-billion common stock repurchase program with no expiration date. As of March 31, 2026, $0.5 billion worth of authorization remained available.
During the Investor Day presentation, the company highlighted that its capital allocation priorities include investing in growth, maintaining dividends in line with shareholder expectations, preparing for different macroeconomic and regulatory scenarios, and returning excess capital through buybacks. The company also noted that its board authorized a $30-billion multi-year common stock repurchase program, expected to begin in the second quarter of 2026. Supported by a strong capital and liquidity position, its capital distribution activities seem sustainable.
C’s Solid Growth Forecast With Attractive ValuationThe Zacks Consensus Estimate for Citigroup’s 2026 and 2027 earnings implies year-over-year rallies of 34% and 16.4%, respectively. Estimates for 2026 and 2027 have been revised upward over the past month.
Estimate Revision Trend
Image Source: Zacks Investment Research
From a valuation standpoint, C trades at a forward price-to-earnings (P/E) ratio of 12.30X, below the industry’s average of 14.28X. Its peers Bank of America and Wells Fargo trade at a forward P/E of 11.79X and 11.44X, respectively.
Price-to-Earnings F12M
Image Source: Zacks Investment Research
Final View on C: A Hold Case With Structural Growth PotentialWhile Citigroup’s valuation remains reasonable relative to the industry, the stock’s sharp run-up limits immediate upside potential. Execution risks tied to restructuring, macroeconomic uncertainty and interest-rate movements also warrant caution.
Nonetheless, Citigroup’s transformation strategy, improving profitability outlook and disciplined capital returns remain encouraging. The bank’s ongoing divestitures, cost-control efforts, AI-led efficiency initiatives and focus on higher-return businesses are expected to support revenue growth over the next several years. Its solid liquidity position, dividend growth and planned buybacks further enhance shareholder value.
Therefore, investors who already own Citigroup’s stock may continue to hold it to benefit from its long-term transformation and capital-return plans. However, new investors may prefer to wait for a better entry point before adding the stock.
Citigroup currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BEDFORD, Mass.--(BUSINESS WIRE)--Stoke Therapeutics, Inc. (Nasdaq: STOK) is a biotechnology company dedicated to restoring protein expression by harnessing the body's potential with RNA medicine and has a lead investigational medicine, zorevunersen, in development as a first-in-class potential disease-modifying treatment for Dravet syndrome. The Company today announced that, effective on June 15, 2026, it granted stock options to purchase an aggregate of 103,020 shares of common stock to nine n.
A former Citigroup executive alleged in a lawsuit that the bank sacked her after she flagged its efforts to court U.S. President Donald Trump as a client as well as its broader risk-management practices, the Financial Times reported on Tuesday.
Canopy Growth (CGC 2.53%) just reported its results for the fourth quarter of fiscal 2026 (ended March 31), and the cannabis retailer appears to be stabilizing after a few turbulent years, as it improves its balance sheet while targeting key acquisitions.
Looking five years ahead, Canopy's trajectory suggests a transformation from a recovering Canadian producer into a highly streamlined, cash-flow-positive leader across global medical, adult-use, and specialized vaporizer markets.
It's worth noting that the stock has struggled and is down more than 14% this year and more than 33% during the past year.
Image source: Getty Images.
Phase 1: Near-term profitability and operational improvements The immediate priority for Canopy Growth is achieving positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), a target the executive team said it expects to hit during fiscal 2027. In fiscal 2026, the company showed financial discipline, trimming free cash outflow from 176.6 million Canadian dollars ($126.3 million) to CA$69.1 million and cutting its full-year net loss by 49%. That's a great start, but the company will need to continue that for the next two years to become profitable.
The CA$125 million integration of MTL Cannabis, completed in March, positions Canopy as Canada's top medical cannabis company by revenue. MTL gives Canopy a stronger presence in Quebec, the No. 2 cannabis market in Canada. While the first half of fiscal year 2027 will bear the lingering integration costs and inventory adjustments, as shown by its CA$10.7 million in fourth-quarter inventory charges, the second half of fiscal 2027 should see margin expansion.
The company expects growth in its premium medical lines, such as Spectrum Reserve, as well as in adult-use innovations, including high-THC flower and All-In-One vaporizers.
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Phase 2: International expansion and the U.S. market catalyst By years three and four, Canopy's primary growth engine will shift decisively from Canada to international territories, specifically Europe and the U.S.
In Europe, Canopy is already has strong tailwinds, highlighted by an impressive 68% growth in international cannabis net revenue in the fourth quarter, following the resolution of historical supply chain constraints. Germany's steady regulatory liberalizations and Europe's expanding acceptance of medical cannabis present an enormous long-term opportunity. Canopy intends to duplicate its dominant Canadian medical framework, driven by insured patient growth and extensive product assortments, across key European medical channels.
At the same time, the company's structural destiny relies heavily on the U.S. Through its non-controlling interest in Canopy USA, the company has insulated its balance sheet while maintaining direct operational exposure to state-legal U.S. markets. Canopy USA's planned ecosystem, including the finalized acquisitions of high-performing brands such as Jetty and Wana Wellness, is set up to scale at the outset of federal policy shifts.
As the U.S. proceeds with the historic shift of medical cannabis from Schedule I -- the most dangerous category -- to Schedule III under the Controlled Substances Act, Canopy USA will trigger full operational integration. This change lets the parent company capitalize on multistate distribution, optimize tax structures under Internal Revenue Code 280E, and aggressively deploy its Canadian intellectual property across U.S. borders.
Phase 3: The mature five-year horizon By year five, Canopy Growth's corporate profile will look radically different from the debt-laden entity of the early 2020s, and it will have significantly cut total long-term debt during the previous five years. Backed by the $131.3 million net cash cushion secured during its strategic January 2026 recapitalization, the company will have fully exited its capital-preservation phase.
The Storz & Bickel vaporizer segment, despite experiencing a temporary 14% revenue contraction in 2026 due to inflation and U.S. import tariffs, will reemerge as a premium consumer tech pillar. Innovation pipelines like the Veazy portable vaporizer line will capture the accessible, tech-driven consumer base, while gross margins will rebound as supply chains stabilize and global trade tariffs normalize.
Cultivation will be largely asset-light, leveraging contracted flower networks such as MTL Cannabis to keep capital expenditures low. Revenue streams will be globally diversified, with Canada serving as a steady, highly optimized cash generator, while Europe and Canopy USA drive rapid top-line growth.
Comeback in Canada Canopy Growth is positioned to operate as a highly integrated, multinational cannabis and device powerhouse five years from now.
There are risk factors to consider, including inflation, shifting regulatory timelines, and intense brand competition that could lead to additional price declines. However, by swapping crippling debt for a positive cash position and pivoting from raw cultivation volume to premium, medical-first consumer brands, Canopy has secured the flexibility required to lead the Canadian and, perhaps, global market.
Key Takeaways CGC framed fiscal 2026 as a reset built on leaner costs, a stronger balance sheet and growth.MTL integration is central, with CGC already executing $6M of targeted $10M annualized synergies.CGC expects fiscal 2027 revenue growth, better margins, lower costs and positive adjusted EBITDA. Canopy Growth Corporation (CGC - Free Report) used its fourth-quarter call to argue that fiscal 2026 was a reset year, with management emphasizing a leaner cost base, a stronger balance sheet and a clearer growth agenda anchored in medical cannabis and Europe.
The setup matters because the quarter itself was uneven. CGC reported a loss of 17 cents per share, wider than the Zacks Consensus Estimate of a loss of 6 cents. Revenues of $51.9 million also missed the consensus mark of $53.3 million by 2.5%.
CGC Makes the Reset Its Main MessageChief executive officer Luc Mongeau described fiscal 2026 as a defining year in which Canopy streamlined operations, reallocated resources and reset the cost structure. He said those actions were beginning to show up in the business and should have a larger impact in fiscal 2027.
Mongeau also tied that reset to a recapitalization that stabilized liquidity and extended debt maturities to 2031. He presented the stronger balance sheet as a way to reduce risk while giving the company more flexibility to pursue growth opportunities.
The press release supported that framing. Canopy ended fiscal 2026 with C$364.7 million in cash and a net cash position of C$131.3 million compared with net debt of C$172.6 million a year earlier.
Canopy Growth Puts MTL at the CenterCanopy made the MTL Cannabis acquisition the central strategic theme of the call. Mongeau said the deal established the company as Canada’s leading medical cannabis business by revenue and added cultivation expertise that should help improve product quality and consistency across the network.
Management said integration has moved quickly. Mongeau told analysts the company is already executing on C$6 million of a targeted C$10 million in annualized cost synergies, while also using Canopy’s distribution network to broaden MTL’s reach, including Germany.
That synergy story went beyond cost cuts. In response to Alliance Global Partners, Mongeau said it is still early, but Canopy expects better flower quality from the combined cultivation base to support growth in both Canadian recreational cannabis and Europe.
CGC Sees Growth in Medical and EuropeFourth-quarter net revenues rose 10% year over year to C$71.2 million, with cannabis revenues up 20% to C$54.5 million. The best-performing areas were Canada medical and international cannabis, which management repeatedly highlighted as the clearest proof that the strategy is gaining traction.
Canada medical revenues increased 27% in the quarter to C$25.3 million, helped by growth in insured patients and a broader assortment. For the full year, Canada medical revenues rose 18%, and adult-use cannabis revenues increased 20%.
Europe was another focal point. Mongeau said Canopy had fixed supply chain issues that hurt earlier results, and international cannabis revenues climbed 68% in the quarter to C$8.6 million. He added that momentum continued into the first quarter of fiscal 2027 and that the company is targeting U.K. expansion this year.
Canopy Growth Argues Margins Are Improving Beneath ChargesChief accounting officer and CFO Thomas Stewart acknowledged that reported profitability was pressured by acquisition-related charges. Cannabis gross margin was 7% in the quarter, weighed down by C$10.7 million of inventory-related charges tied to the MTL transaction and portfolio rationalization.
Stewart’s main rebuttal was adjusted gross margin. Excluding acquisition-related charges, adjusted gross margin for the cannabis segment improved to 26% from 12% a year ago, which he said better reflects the underlying earnings power of the business as integration progresses.
The same argument extended to EBITDA. Adjusted EBITDA loss narrowed to C$6.3 million from C$9.2 million a year earlier, and Stewart said the company would have been closer to breakeven without the inventory charges.
CGC Q&A Highlights the Real HeadwindsThe toughest analyst questioning centered on Veterans Affairs reimbursement changes in Canada medical. Asked by Canaccord Genuity and Zuanic & Associates, Stewart said the company expects pressure on revenues, even as it uses pricing, product mix and retention efforts to protect EBITDA and gross margin.
That was one of the clearest caution points on the call. Stewart said Canopy is seeing positive early fiscal 2027 momentum in medical, but it will be difficult to maintain the same growth level seen in fiscal 2026, and getting back to flat year-over-year performance in Canadian medical will be challenging.
Analysts also pushed on U.S. strategy, but management stayed disciplined. Mongeau said near-term priorities remain Canada and international markets, while Stewart said broader benefits in the U.S. depend on uplisting potential for plant-touching businesses.
Canopy Growth Leaves a Narrower 2027 AgendaThe forward message was focused. The press release said fiscal 2027 should bring net revenue growth, meaningful gross margin improvement and lower operating expense, with positive adjusted EBITDA expected during the year and larger gains weighted to the second half.
Mongeau’s closing comments matched that outlook. He pointed to Canadian medical leadership, more room for adult-use share gains and stronger execution in Germany and Poland as the company’s clearest priorities coming out of the quarter.
The broader takeaway from the call was that Canopy is no longer presenting itself as a story built on optionality alone. Management is trying to show that restructuring, balance sheet repair and MTL integration can translate into more durable operating improvement in fiscal 2027.
Zacks Signals Remain MixedCGC carries a Zacks Rank #3 (Hold). Under the Zacks framework, that points to a more balanced near-term outlook than a Zacks Rank #1 (Strong Buy) or 2 (Buy), while still allowing investors to monitor the stock rather than dismiss it outright. You can see the complete list of today’s Zacks #1 Rank stocks here.
Its Style Scores are mixed, with an F for Value, A for Growth, B for Momentum and a VGM Score of B. That combination suggests stronger growth and momentum characteristics than valuation support. After the quarter’s wider-than-expected loss and revenue miss, the Zacks Rank can still change as earnings estimate revisions adjust following the results.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
BRECKENRIDGE, Colo., June 16, 2026 (GLOBE NEWSWIRE) -- Breckenridge Brewery, Colorado’s most recognized craft brewer and part of Tilray Brands, Inc. (“Tilray”) (Nasdaq: TLRY; TSX: TLRY), today unveiled a vibrant lineup of watch parties and themed activations across its taprooms and select partner locations, bringing fans together with limited-release beer, spirited competition, and match-day specials.
As fans across the U.S. rally around the biggest tournament in international soccer, Breckenridge Brewery is transforming its Colorado footprint into a hub for game-day energy, local camaraderie, and beer-forward experiences inspired by the excitement of the global stage.
Across Breckenridge Brewery’s taprooms and partner accounts, the brand is celebrating the tournament with interactive programming and fan-first offerings, from foosball competitions and “PK for Pints” to trivia nights, themed merchandise, and location-specific beer promotions. Whether fans stop by a neighborhood partner bar, head to the Farm House for a watch party, or visit the Brew Pub or Fort Collins taproom for game-time specials, Breckenridge Brewery is creating more ways to connect over great beer and the spirit of competition.
Kayt Smith, Senior Brand Manager at Breckenridge Brewery, said, “This summer’s global soccer celebration is creating moments of connection around the world, and that spirit naturally reflects the experiences we aim to deliver in our taprooms every day. From limited-release beer and in-venue competitions to watch parties and themed food and beverage offerings, we’re excited to give fans across Colorado even more ways to come together, cheer on the action, and celebrate throughout the tournament.”
Breckenridge Brewery is bringing the tournament spirit to life with:
Across Breckenridge Brewery taprooms, fans can raise a crowler of limited-release WC Kölsch and score branded soccer-themed coasters and tournament-inspired merchandise.The Farm House will turn up the excitement with “PK for Pints” during USA matches, official watch parties with the Colorado Soccer Association, match-day food and drink specials, and USA-themed plush merchandise.The Breck Brew Pub will keep the momentum going with BOGO beers during matches and a globally inspired wing program built for game-day gatherings.At select partner locations, fans can step up to the foosball table for the chance to win pints and branded Breckenridge Brewery merchandise. With activations tailored to each location, Breckenridge Brewery is leaning into the fun, community, and competitive spirit that make tournament season a natural fit for craft beer occasions.
From mountain-town match viewing to taproom games and limited-release pours, Breckenridge Brewery is inviting fans to celebrate every stage of the tournament through memorable experiences rooted in Colorado hospitality and craft beer culture.
For more information on Breckenridge Brewery’s programming and taproom events, visit Breckenridge Brewery online or follow the brand on social media.
About Breckenridge Brewery
Founded in 1990, Breckenridge Brewery has grown from a small mountain-town brewpub into one of Colorado’s most recognized craft beer brands, with destinations that bring together great beer, hospitality, and community. Known for its broad portfolio of approachable and adventurous styles, Breckenridge Brewery continues to create memorable experiences for locals and visitors alike through its brewpubs, taprooms, and seasonal programming. Breckenridge Brewery is part of Tilray Brands, Inc.
About Tilray Brands
Tilray Brands, Inc. (“Tilray”) (Nasdaq: TLRY; TSX: TLRY), is a leading global lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is leading as a transformative force at the nexus of cannabis, beverage, wellness, and entertainment, elevating lives through moments of connection. Tilray’s mission is to be a leading premium lifestyle company with a house of brands and innovative products that inspire joy and create memorable experiences. Tilray’s unprecedented platform supports over 40 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and craft beverages.
For more information on how we are elevating lives through moments of connection, visit Tilray.com and follow @Tilray on all social platforms.
Forward-Looking Statements
Certain statements in this communication that are not historical facts constitute forward-looking information or forward-looking statements (together, “forward-looking statements”) under Canadian and U.S. securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be subject to the “safe harbor” created by those sections and other applicable laws. Forward-looking statements can be identified by words such as “forecast,” “future,” “should,” “could,” “enable,” “potential,” “contemplate,” “believe,” “anticipate,” “estimate,” “plan,” “expect,” “intend,” “may,” “project,” “will,” “would” and the negative of these terms or similar expressions, although not all forward-looking statements contain these identifying words. Certain material factors, estimates, goals, projections, or assumptions were used in drawing the conclusions contained in the forward-looking statements throughout this communication. Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses, or current expectations. Many factors could cause actual results, performance, or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to the Company or that the Company deems immaterial could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. For a more detailed discussion of these risks and other factors, see the most recently filed annual information form of Tilray and the Annual Report on Form 10-K (and other periodic reports filed with the SEC) of Tilray made with the SEC and available on EDGAR. The forward-looking statements included in this communication are made as of the date of this communication and the Company does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events, or otherwise unless required by applicable securities laws.
LAS VEGAS and COLUMBUS, Ohio, June 16, 2026 (GLOBE NEWSWIRE) -- BrewDog, one of the most recognizable craft beer brands and part of Tilray Brands, Inc. (NASDAQ: TLRY; TSX: TLRY), today announced its U.S. summer soccer programming, positioning its bars as go-to destinations for fans following the summer’s global soccer tournament.
From opening match to final whistle, BrewDog locations across the U.S. will deliver a simple promise: show up early, stay loud, and don’t miss a moment. Built around live match screenings, cold beer and crowd energy, the program is designed to bring people together for the kind of shared, high-energy experiences that only live sport can deliver.
Brittany Foster, Head of Brand & Marketing, BrewDog US, said, “There’s nothing quite like the energy of a packed bar when a game is on and every moment matters. This summer, we’re turning our BrewDog bars into the ultimate gathering place for fans, great beer, big screens, and an atmosphere you can’t replicate at home. Whether you’re cheering for your team, celebrating a last-minute goal, or just soaking up the excitement with friends, BrewDog is where fans can come together and be part of the action.”
Throughout the tournament, BrewDog bars will serve as hub locations for fans looking to watch together, not from the couch, but in a live, social setting built for every big moment.
At BrewDog Las Vegas, fans can take in every match from one of the most unique viewing destinations on the Strip. With multiple levels, rooftop views, massive screens, and the dedicated UnderDog Beer Hall, the venue is built for all-day match-day energy—from the opening kickoff to the final whistle.
Fans can enjoy:
Wall-to-wall match coverage across multiple viewing areasRooftop viewing with panoramic views of the Las Vegas StripBeer towers, shareable menus, and group-friendly packagesDedicated sports viewing spaces, including the UnderDog Beer Hall$8 Cold Beer pints and $24 pitchers during matches In Ohio, BrewDog locations across Columbus, New Albany, and Cleveland will serve as hubs for fans looking to catch the action with fellow supporters all tournament long.
Fans can expect:
Live coverage of matches throughout the day$5 Cold Beer drafts and $12 pitchers during matchesWings specials and shareable game-day food offeringsMatch-day giveaways and fan experiencesHigh-energy community watch parties across BrewDog’s hometown market Whether it’s the bright lights of Las Vegas or BrewDog’s home turf in Ohio, fans will find the same winning formula: great beer, great food, and an unforgettable atmosphere built for the biggest matches of the summer.
The action doesn’t stop at the bar. Throughout the tournament, fans can enter in-bar for a chance to win a custom BrewDog cooler built for epic watch parties at home. Gather your friends, stock it with your favorite BrewDog beers, and bring match-day energy wherever you watch.
About BrewDog USA
Headquartered in Columbus, Ohio, BrewDog USA has been part of the craft beer movement since 2017 and is home to the world’s first craft beer hotel and a 100,000-square-foot brewery. The company distributes in select states nationwide and operates flagship locations in Columbus, New Albany, and Cleveland, Ohio, as well as Las Vegas, Nevada, with franchise locations in Denver, Colorado, and airport locations in Columbus, Ohio, and Orlando, Florida. BrewDog remains focused on innovation, quality, and great-tasting beer, offering a mix of seasonal and flagship brews, including Elvis Juice, BrewDog IPA, Hazy Jane, and Cold Beer, alongside top-performing non-alcoholic options and its newest innovation, Juice Club.
About Tilray Brands
Tilray Brands, Inc. (“Tilray”) (Nasdaq: TLRY; TSX: TLRY), is a leading global lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia and Latin America that is leading as a transformative force at the nexus of cannabis, beverage, wellness, and entertainment elevating lives through moments of connection. Tilray’s mission is to be a leading premium lifestyle company with a house of brands and innovative products that inspire joy and create memorable experiences. Tilray’s unprecedented platform supports over 40 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods and craft beverages.
For more information on how we are elevating lives through moments of connection, visit
Tilray.com and follow @Tilray on all social platforms.
Forward-Looking Statements
Certain statements in this communication that are not historical facts constitute forward-looking information or forward-looking statements (together, “forward-looking statements”) under Canadian and U.S. securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be subject to the “safe harbor” created by those sections and other applicable laws. Forward-looking statements can be identified by words such as “forecast,” “future,” “should,” “could,” “enable,” “potential,” “contemplate,” “believe,” “anticipate,” “estimate,” “plan,” “expect,” “intend,” “may,” “project,” “will,” “would” and the negative of these terms or similar expressions, although not all forward-looking statements contain these identifying words. Certain material factors, estimates, goals, projections, or assumptions were used in drawing the conclusions contained in the forward-looking statements throughout this communication. Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses, or current expectations. Many factors could cause actual results, performance, or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to the Company or that the Company deems immaterial could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. For a more detailed discussion of these risks and other factors, see the most recently filed annual information form of Tilray and the Annual Report on Form 10-K (and other periodic reports filed with the SEC) of Tilray made with the SEC and available on EDGAR. The forward-looking statements included in this communication are made as of the date of this communication and the Company does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events, or otherwise unless required by applicable securities laws.
BRECKENRIDGE, Colo., June 16, 2026 (GLOBE NEWSWIRE) -- Breckenridge Distillery, one of the most-awarded craft distilleries in the U.S. and part of Tilray Brands, Inc. (NASDAQ: TLRY and TSX: TLRY), introduces Patriotic Reserve Bourbon Whiskey, a limited-release blend of straight bourbons created to celebrate America’s spirit ahead of Independence Day and the nation’s 250th anniversary.
Made with grains sourced from America’s heartland and blended with pure Rocky Mountain water at the world’s highest distillery, Patriotic Reserve reflects the spirit of the nation it honors. It’s a fitting pour for Fourth of July celebrations or a meaningful gift for the veterans and active-duty service members who help protect America’s freedoms.1
Breckenridge Patriotic Reserve is an 86-proof blend of straight bourbon whiskeys with a high-rye mash bill, offering a bold yet balanced profile. Enjoy it neat, on the rocks, or in seasonal cocktails like the Uncle Sam’s Julep—crafted for moments of connection that celebrate freedom, community, and the American way of life.
“Patriotic Reserve pays tribute to the spirit that defines this country—resilience, independence, and shared pride,” said Bryan Nolt, Founder and CEO of Breckenridge Distillery. “As America approaches its 250th anniversary, we set out to create a whiskey that honors those values and brings people together to celebrate them—whether around the table on the Fourth of July or in quiet gratitude for those who serve.”
Patriotic Reserve Bourbon Whiskey is now available at national retailers and for home delivery where permitted. 750ml, $34.99-39.99 MSRP.
For more information about Breckenridge Distillery, visit www.breckenridgedistillery.com and click here to find retailers near you. Follow Breckenridge Distillery on Instagram @breckdistillery and become a fan at facebook.com/BreckDistillery. Age 21+. Always enjoy responsibly.
About Breckenridge Distillery
Founded in Colorado in 2008, Breckenridge Distillery is the “World’s Highest Distillery,” and is best known for its award-winning blended bourbon whiskey, a high-rye mash American-style whiskey. One of the most highly awarded distilleries in the U.S., the Breckenridge Distillery is proudly a 3x Icons of Whisky and 10x winner of Best American Blended winner at the World Whiskies Awards by Whisky Magazine and a 4x winner of Colorado Distillery of the Year by the New York International Spirits Competition. Most recently, Breckenridge Port Cask Finish was named World’s Best Finished Bourbon at the 2024 World Whiskies Awards, joining Breckenridge High Proof, named World’s Best Blended Whiskey and Breckenridge Gin, named World’s Best Compound Gin at the World Gin Awards by Gin Magazine. Breckenridge spirits have been awarded 6 Double Golds at the San Francisco World Spirits Competition.
The Breckenridge Distillery is more than award-winning spirits, offering an immersive guest experience. Named as one of the country’s Top Visitor Attractions by Whisky Magazine, guests can dine at their award-winning restaurant, enjoy show-stopping cocktails, learn about their highly awarded spirits with an in-depth tasting, and get an inside look at their active production facility. New to the distillery, guests have the opportunity to blend their own whiskey as they learn the inner workings of whiskey production.
Breckenridge Distillery is a subsidiary of Tilray Brands, Inc. (NASDAQ: TLRY and TSX: TLRY), a leading global cannabis-lifestyle and consumer packaged goods company inspiring and empowering the worldwide community to live their very best life.
To learn more about Breckenridge Distillery, visit www.breckenridgedistillery.com. Keep up with Breckenridge Distillery on Instagram by following @breckdistillery and become a fan at facebook.com/BreckDistillery.
About Tilray Brands
Tilray Brands, Inc. (“Tilray”) (Nasdaq: TLRY; TSX: TLRY), is a leading global lifestyle and consumer packaged goods company with operations in Canada, the United States, Europe, Australia, and Latin America that is leading as a transformative force at the nexus of cannabis, beverage, wellness, and entertainment, elevating lives through moments of connection. Tilray’s mission is to be a leading premium lifestyle company with a house of brands and innovative products that inspire joy and create memorable experiences. Tilray’s unprecedented platform supports over 40 brands in over 20 countries, including comprehensive cannabis offerings, hemp-based foods, and craft beverages.
For more information on how we are elevating lives through moments of connection, visit Tilray.com and follow @Tilray on all social platforms.
Forward-Looking Statements
Certain statements in this communication that are not historical facts constitute forward-looking information or forward-looking statements (together, “forward-looking statements”) under Canadian and U.S. securities laws and within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, that are intended to be subject to the “safe harbor” created by those sections and other applicable laws. Forward-looking statements can be identified by words such as “forecast,” “future,” “should,” “could,” “enable,” “potential,” “contemplate,” “believe,” “anticipate,” “estimate,” “plan,” “expect,” “intend,” “may,” “project,” “will,” “would” and the negative of these terms or similar expressions, although not all forward-looking statements contain these identifying words. Certain material factors, estimates, goals, projections, or assumptions were used in drawing the conclusions contained in the forward-looking statements throughout this communication. Forward-looking statements include statements regarding our intentions, beliefs, projections, outlook, analyses, or current expectations. Many factors could cause actual results, performance, or achievement to be materially different from any forward-looking statements, and other risks and uncertainties not presently known to the Company or that the Company deems immaterial could also cause actual results or events to differ materially from those expressed in the forward-looking statements contained herein. For a more detailed discussion of these risks and other factors, see the most recently filed annual information form of Tilray and the Annual Report on Form 10-K (and other periodic reports filed with the SEC) of Tilray made with the SEC and available on EDGAR. The forward-looking statements included in this communication are made as of the date of this communication and the Company does not undertake any obligation to publicly update such forward-looking statements to reflect new information, subsequent events, or otherwise unless required by applicable securities laws.
1 This product is not affiliated with, endorsed by, or sponsored by the United States Armed Forces, the U.S. Department of Defense, or any government agency. References to those who serve are made solely as an expression of gratitude.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/cfb69f96-e9ca-4f03-bf15-55f8f750bb07
In the latest trading session, Tilray Brands, Inc. (TLRY - Free Report) closed at $4.88, marking a -2.59% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.57%. Elsewhere, the Dow saw an upswing of 0.64%, while the tech-heavy Nasdaq depreciated by 1.15%.
The company's shares have seen a decrease of 3.28% over the last month, not keeping up with the Medical sector's gain of 4.28% and the S&P 500's gain of 2.14%.
The investment community will be closely monitoring the performance of Tilray Brands, Inc. in its forthcoming earnings report. In that report, analysts expect Tilray Brands, Inc. to post earnings of -$0.01 per share. This would mark a year-over-year decline of 105%. Meanwhile, the latest consensus estimate predicts the revenue to be $268.17 million, indicating a 19.43% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of -$0.58 per share and a revenue of $885.3 million, demonstrating changes of -680% and +7.79%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for Tilray Brands, Inc. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
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, there's been no change in the Zacks Consensus EPS estimate. As of now, Tilray Brands, Inc. holds a Zacks Rank of #3 (Hold).
The Medical - Products industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 168, positioning it in the bottom 32% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Artificial intelligence (AI) has supercharged many tech stocks, such as Nvidia (NVDA 2.16%), and significantly bolstered their long-term growth opportunities. For investors, that has resulted in some incredibly impressive gains. Even the recent SpaceX IPO is benefiting from AI-fueled hype, because while it's often referred to as a rocket company, it estimates that the vast majority of its total addressable market will come from AI.
It's been all about AI in the stock market for the past few years. And while that does represent a huge opportunity, there's also the danger that expectations may have become unrealistic. If that's the case, there could be a big reckoning ahead. OpenAI's CEO, Sam Altman, issued a warning back in 2024 about AI amid the development of ChatGPT, which I believe could prove to be prophetic.
Image source: Getty Images.
Investors may be setting themselves up for disappointment ChatGPT and other AI chatbots have made many tasks easier for both businesses and individuals. They can generate images and draft professional responses for emails and, through agentic AI, can even handle multi-step processes that in the past could have taken hours.
But in 2024, Altman made a remark that I think warrants much more attention, and it may foreshadow what's to come for AI investments. When referring to the development of the next version of ChatGPT, Altman said people were "begging to be disappointed" because of their inflated expectations for what the chatbot should be able to do.
While Altman remains excited about what AI can do for humanity in the future, those are four words that I believe investors should always keep in mind when investing in stocks because of their AI-related opportunities.
AI stocks have some incredible growth prospects baked into their valuations Many AI-exposed stocks, including SpaceX, Nvidia, and others, trade at high valuations, but this is often overlooked because of what the future is expected to be for these companies.
But what if they fall short of those expectations? That's not something the market seems willing to consider at this point, given how hot it's been in recent years and how expensive many AI-exposed stocks have become. And yet, it's a worthwhile question to ask because it uncovers the risks many of these stocks pose. Nvidia, for instance, looks cheap based on its price-to-earnings-growth ratio of just 0.63, which would suggest it's still an incredible bargain. But that's based on its expected growth over the next five years.
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Things can change quickly, especially in tech, and investors shouldn't forget that. Buying stocks based on assumptions of future growth can be dangerous and lead to disastrous results later. Now may be a good time to consider focusing on more value-oriented stocks with more predictable business models; going too heavily on AI stocks could add significant risk to your portfolio.
Nvidia (NASDAQ: NVDA) shareholders are receiving this quarter’s dividend next week, on Friday, June 26, 2026.
More specifically, investors in the semiconductor leader on record as of June 4 will receive $0.25 per share, as per the latest numbers Finbold retrieved from DivvyDiary.
Notably, the upcoming payment marks an important milestone in Nvidia’s dividend history, being 25 times higher than one issued for the previous quarter on April 1.
Accordingly, investors holding 100 NVDA shares will earn $25 next week as the company’s new dividend and share buyback strategy kicks off.
Nvidia dividends calendar. Source: DivvyDiary New Nvidia dividend strategy Looking back, the upcoming payment is a significant jump, as 100 NVDA shares would have yielded just $1 in April.
With 24.22 billion Nvidia shares outstanding, next Friday’s payout is expected to distribute more or less $6.055 billion to shareholders.
At the time of writing, a $10,000 investment in Nvidia at the beginning of 2026 would have grown to approximately $11,283, the total gain reaching $1,283 with dividends reinvested.
Total Nvidia returns in 2026 with dividends reinvested. Source: DivvyDiary The investment achieved a total return of more or less 12.8% year to date, meaning the portfolio increased by nearly 13% in value over the period. However, Nvidia’s returns during this period have been driven primarily by capital appreciation, not dividend income.
When annualized, the total return CAGR reaches 30.4%, while the share price alone produced a CAGR of around 30%. The slight difference between these two figures reflects the positive impact of reinvested dividends, which have added modestly to overall performance.
Nvidia yield and payout ratio Overall, Nvidia currently offers an annual payout of $0.28 per share, which translates to a dividend yield of 0.13%. For comparison, the average yield in the sector is 1.37%.
The company has increased its dividend for three consecutive years, demonstrating a commitment to returning capital to shareholders even while maintaining an aggressive growth strategy.
Finally, the stock pays dividends on a quarterly basis, and the price usually recovers within 2.5 days after the ex-dividend date.
Featured image via Shutterstock
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Upcoming ISG Provider Lens® report will evaluate providers helping U.S. enterprises scale AI platforms from strategy through operations
STAMFORD, Conn.--(BUSINESS WIRE)--Information Services Group (ISG) (Nasdaq: III), a global AI-centered technology research and advisory firm, has launched a research study examining providers that help U.S. enterprises adopt and operate NVIDIA-based AI environments at scale.
Enterprises are looking for a clearer path through an increasingly complex ecosystem for AI platforms. As NVIDIA-based environments become more central to enterprise AI strategies, providers will need to help clients make practical decisions.
Share The study results will be published in a comprehensive ISG Provider Lens® report, called NVIDIA Ecosystem, scheduled to be released in October 2026. The report will cover companies offering consulting, deployment and performance optimization services for NVIDIA-based enterprise AI platforms.
Enterprise buyers will be able to use the report’s insights to evaluate their current vendor relationships, identify potential new engagements and compare available offerings. ISG advisors will use the research to guide clients through increasingly complex transformation and platform investment decisions.
The NVIDIA ecosystem is maturing as enterprises scale AI deployments and increasingly focus on AI reliability, governance and cost control. NVIDIA’s expansion from building hardware to offering a broader AI platform is changing how companies design and operate AI infrastructure. Enterprises are adopting NVIDIA-based environments to support AI factories, agentic workloads and digital twins across cloud, on-premises and hybrid architectures, increasing demand for partners with platform engineering, AI operations and governance expertise.
“Enterprises are looking for a clearer path through an increasingly complex ecosystem for AI platforms,” said Heiko Henkes, managing director at ISG. “As NVIDIA-based environments become more central to enterprise AI strategies, including physical AI initiatives, providers will need to help clients make practical decisions about architecture, operating models and long-term value realization.”
ISG has distributed surveys to more than 80 NVIDIA ecosystem providers. Working in collaboration with ISG’s global advisors, the research team will produce three quadrants representing the NVIDIA ecosystem services the typical enterprise is buying, based on ISG’s experience working with its clients. The three quadrants are:
NVIDIA Consulting and AI Transformation Services, evaluating providers that help enterprises adopt NVIDIA-aligned AI platforms, operating models and roadmaps at scale. These providers support AI strategy, use-case prioritization, data readiness assessment, business case development and governance-led transformation programs. NVIDIA Deployment and Implementation Services, assessing providers that engineer, deploy and integrate NVIDIA full-stack AI platforms. These providers are evaluated on platform engineering, workload deployment and integration capabilities across hyperscaler, on-premises and hybrid infrastructures. NVIDIA Performance Optimization Services, covering providers that operate, optimize and continuously improve NVIDIA-powered AI environments at scale. These providers deliver services focused on performance reliability, GPU efficiency, workload stability and operational resilience. The report produced from the study will cover the global NVIDIA ecosystem market and examine products and services available in the U.S. ISG analysts Dr. Tapati Bandopadhyay and Ashwin Gaidhani will serve as authors of the report.
A list of identified providers and vendors and further details on the study are available in this digital brochure. Companies not listed as NVIDIA ecosystem providers can contact ISG and ask to be included in the study.
All 2026 ISG Provider Lens evaluations feature expanded customer experience (CX) data capturing real-world enterprise feedback on specific provider services and solutions, based on ISG’s continuous CX research.
About ISG
ISG (Nasdaq: III) is a global AI-centered technology research and advisory firm. A trusted partner to more than 900 clients, including 75 of the world’s top 100 enterprises, ISG is a long-time leader in technology and business services that is now at the forefront of leveraging AI to help organizations achieve operational excellence and faster growth. The firm, founded in 2006, is known for its proprietary market data and research, in-depth knowledge and governance of provider ecosystems, and the expertise of its 1,500 professionals worldwide working together to help clients maximize the value of their technology investments.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) is back through the $5 trillion mark. CEO Jensen Huang called “the buildout of AI factories, the largest infrastructure expansion in human history” on the most recent earnings call, and the numbers back him up.
Data Center revenue hit $75.246 billion in Q1 FY27, up 92% year over year, with Networking alone growing 199%. The stock is up 14.05% year to date at $212.45. Can shares reach $300 in 2026? Let’s run the math.
What’s Holding NVIDIA Back Right Now NVIDIA shares are down 5.6% over the past month and trade 27% below recent levels relative to expectations. China remains a closed market, with zero Data Center compute revenue from the region in Q1 FY27 versus $4.6 billion a year earlier. Supply commitments now sit at $119 billion, raising execution risk if demand softens.
Reports of a $20 billion debt raise, while likely funding the new $80 billion buyback authorization, sparked debate about why a company with $48.554 billion in quarterly free cash flow needs to tap credit markets. With a beta of 2.2, the stock swings hard on any capex doubt.
Wall Street Sees 41% Upside. Our Model Says Less Of 61 covering analysts, 10 rate it Strong Buy, 48 Buy, 2 Hold, and 1 Sell, with a consensus target of $298.93. Our base case is $235.49 by year end, implying 21.13% upside, with a bull case of $267.96 and a bear case of $218.43. Confidence sits at 90%.
With 95% bullish coverage and earnings growth of 214.5% YoY, the consensus reflects a real fundamental shift. Our model dampens the result because of mega-cap gravity, not because the thesis is broken.
The Path to $300 Per Share Reaching $300 from today’s price of $212.45 would require a 41.2% gain. With forward EPS of $8.01, a price of $300 implies a forward P/E of 37x. Our base case of $235.49 already implies 36x on trailing earnings, meaning the bold target requires only about 1.1x additional multiple expansion on forward numbers.
Q2 guidance of $91 billion in revenue with a 75% non-GAAP gross margin should compress that forward multiple as EPS estimates climb.
Catalysts include a $1 trillion data center buildout, the Meta multiyear deal, the OpenAI 10GW deployment, and Huang’s view that “agentic AI has arrived, doing productive work, generating real value and scaling rapidly”. Primary risk: any cut to hyperscaler capex guidance would hit this stock first and hardest.
Where NVIDIA Trades Today vs Its Earnings Power At $212.45 against forward EPS of $8.01, NVIDIA trades at roughly 27x forward earnings. For a company growing revenue 85.2% and net income 210.6% YoY, with a PEG of 0.631, that is not expensive.
Shares sit between a 52-week low of $141.84 and high of $236.26. The ten-year return of 18,447% shows what compounding looks like when a platform owns its category.
$300 Is a Stretch, But Here’s Why It’s Possible $300 requires a 41.2% gain from here. Three things need to go right.
Q2 FY27 has to land near the $91 billion guide. Blackwell and the upcoming Vera Rubin platform need to keep Data Center Networking compounding at triple digits. And the $80 billion buyback needs to chew through the float meaningfully before year end. Any sign hyperscaler AI capex is plateauing would derail it. We’ve outlined the blueprint for how NVIDIA could reach $300 in 2026.
Nvidia (NVDA - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Shares of this maker of graphics chips for gaming and artificial intelligence have returned -4.4% over the past month versus the Zacks S&P 500 composite's +2.1% change. The Zacks Semiconductor - General industry, to which Nvidia belongs, has lost 3% 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.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
Nvidia is expected to post earnings of $2.07 per share for the current quarter, representing a year-over-year change of +97.1%. Over the last 30 days, the Zacks Consensus Estimate has changed +7.7%.
The consensus earnings estimate of $8.96 for the current fiscal year indicates a year-over-year change of +87.8%. This estimate has changed +10.4% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $12.13 indicates a change of +35.4% from what Nvidia is expected to report a year ago. Over the past month, the estimate has changed +11.4%.
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 Nvidia.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven 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.
For Nvidia, the consensus sales estimate for the current quarter of $91.58 billion indicates a year-over-year change of +95.9%. For the current and next fiscal years, $385.37 billion and $521.66 billion estimates indicate +78.5% and +35.4% changes, respectively.
Last Reported Results and Surprise HistoryNvidia reported revenues of $81.62 billion in the last reported quarter, representing a year-over-year change of +85.2%. EPS of $1.87 for the same period compares with $0.81 a year ago.
Compared to the Zacks Consensus Estimate of $78.75 billion, the reported revenues represent a surprise of +3.63%. The EPS surprise was +5.65%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Nvidia 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 Nvidia. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
SpaceX options are officially listed, and they're off to the races.
Less than 30 minutes into the session, SpaceX options are already the third-most traded among single stocks, behind Tesla and Nvidia, which typically trade millions of contracts and over $1 billion a day.
Tom Sosnoff, ThinkOrSwim co-founder, TastyTrade founder and CEO of Lossdog — and the man some have called "the Godfather" of options trading for his prominent role in bringing options trading to retail investors decades ago — sees SpaceX climbing to the top.
"After they settle in and become liquid – that means all the HFT firms reach a volatility consensus – the option volume could surpass TSLA and NVDA as the most active equity," Chicago-based Sosnoff said in a text to CNBC. "That's good for business and good for the retail investor."
More than 300,000 SpaceX options traded in the first 30 minutes of Tuesday's session, with more calls trading than puts and more than twice as many calls bought compared to puts, according to data from ThinkOrSwim.
Over $400 million in SpaceX options premium traded during that time, and over $300 million of it was tied to calls, SpotGamma data show. The most popular contract by volume was the 220-strike call expiring Thursday, a near-the-money trade after a 16% rally in SpaceX. The 210-strike in-the-money calls were also popular, accounting for more than $22 million in premium out of the gate.
"One word of caution would be to wait a day or two until pricing becomes efficient," said Sosnoff. "I'm guessing the initial option pricing will be rich and the markets will be too wide."
Implied volatility in SpaceX was 135 as of writing.
Nvidia (NVDA) joined the big borrower gang this week. AI data centers and hardware suppliers are tapping the debt markets to finance the massive artificial intelligence infrastructure buildout. The AI giant's $25 billion bond offering this week underlined the trend. Nvidia stock slipped on Tuesday.
Year-to-date debt issuance for AI and data center ventures has exceeded $300 billion, JPMorgan said in a client note Tuesday. And that's just the beginning, the firm said.
↑ X NOW PLAYING How AI Agents Are Changing Who Gets Hired At A $1 Billion Company
"While it's been a strong start, we expect current issuance trends to represent a baseline given the amount of financing set to hit markets in the coming years," the JPMorgan analyst team wrote. "Corporate credit markets have dominated so far, but we expect issuers to tap every single capital market to support their growth needs."
The investment bank expects total AI capital expenditures to reach $5.5 trillion through 2030. That estimate is up from the $5.1 trillion it predicted last November.
JPMorgan also increased its estimate for the debt financing component of the AI capex buildout to $4.1 trillion.
AI Data Centers Ramp Up Spending Hyperscale cloud service providers building AI data centers are predicted to spend $650 billion on capex in 2026, the analysts said. Their capex is likely headed above $1.1 trillion in 2027.
In addition to debt, AI hardware and service companies are financing their capex needs with equity sales, including initial public offerings for startups.
"Even after three years of elevated spend on AI data center infrastructure, which supported the deployment of an estimated 21 million AI accelerators (GPU + XPU/ASIC) during 2023-2025, and an additional 16 million-plus accelerators forecast to be deployed in 2026, providers and users of AI compute continue to face capacity shortages," JPMorgan said.
The firm noted capacity constraints at Alphabet (GOOGL) unit Google, Microsoft (MSFT) and OpenAI.
The top four U.S. hyperscalers — Google, Amazon (AMZN), Microsoft and Meta Platforms (META) — have collectively guided to $700 billion to $725 billion of total capex in 2026. That would be up about 75% from the $410 billion they spent in 2025.
Nvidia Joins Wave Of Debt Offerings "The funding mix behind the AI buildout has shifted decisively this year," JPMorgan said. "What began as a capex story funded largely through operating cash flow has evolved into a broader mobilization of the capital markets."
Those cloud service providers are buying AI processors mostly from Nvidia, Advanced Micro Devices (AMD) and Broadcom (AVGO).
Nvidia revealed late Monday that it sold $25 billion in high-grade bonds. It joined a wave of large debt offerings this year from tech giants such as Alphabet, Amazon, Meta and Oracle (ORCL), Bloomberg reported.
On the stock market today, Nvidia stock slid 2.4% to close at 207.41.
Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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Jensen Huang's company Nvidia makes the computer chips that unleashed a revolution in artificial intelligence. Now he's wagering that an AI buildout can revive U.S. manufacturing, pushing past limits facing science and society.
On a recent episode of The Investing for Beginners Podcast, value investor Daniel Levy reframed a question that trips up nearly every retail investor: when is a high P/E actually expensive? His answer flips the math. A P/E of 50 equals an earnings yield of just 2%, which sounds punishing. But that yield is only one side of the equation. “If it’s growing earnings at 20% and you have a 2% earnings yield, your return is still pretty good,” Levy said. The trap is paying 50x for a 5% grower. There is no cushion for disappointment.
That single mental model explains why two of the most discussed stocks on the NASDAQ are. That includes NVIDIA (NASDAQ: NVDA | NVDA Price Prediction) and Tesla (NASDAQ: TSLA). Both of which can carry “expensive-looking” multiples and end up in radically different places on the risk spectrum.
NVIDIA: A High Multiple That Compresses Quickly NVIDIA trades at a trailing P/E of 31x and a forward P/E of 23x, with a PEG ratio of 0.63. The headline multiple is well below the 50x threshold Levy uses as a stress test. And the growth side of the equation is doing the heavy lifting. In its most recent quarter, NVIDIA posted $1.87 in non-GAAP EPS against an estimate of $1.77, with revenue of $81.62 billion, up 85.2% year over year, and net income up 210.6%. EPS has climbed in a straight line from $0.81 in Q1 FY2025 to $1.87 in Q1 FY2026.
This is the case Levy describes as cushioned. A 3% earnings yield paired with triple-digit profit growth means the multiple compresses fast, even with no price movement. CEO Jensen Huang framed the runway on the call: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.” Investors who want to verify the underlying numbers can read the Q1 FY2027 filing on SEC.gov. Shares are up 41.7% over the past year to $211.45.
Tesla: The Multiple Levy Warns About Tesla is the opposite picture. The stock trades at a trailing P/E of 369x and a forward P/E of 196x, with a PEG ratio of 5.6. Flipping the multiple yields an earnings yield well below 1%. Levy’s stress test asks whether growth justifies it. Quarterly earnings grew 8.3% year over year on 15.8% revenue growth, and TTM EPS sits at $1.10. Q1 FY2026 EPS of $0.41 is well off the $1.19 quarterly peak from Q4 2022.
That is the asymmetry Levy describes. The reported numbers do not match a 369x multiple unless investors are paying for terminal value: Cybercab, the Tesla Semi, FSD licensing, and Optimus. Polymarket assigns just a 3% probability to a California robotaxi launch by June 30 and a 16.5% probability that Optimus ships by year-end. Bulls can point to the bright spots: FSD active subscriptions reached 1.28 million, up 51% year over year, and auto gross margin expanded to 21.1%. Tesla shares are up 27.36% over the last year to $409.94, but down 9.63% year to date.
The Takeaway From Levy’s Framework Levy’s rule is mechanical. Convert the P/E into an earnings yield, then ask honestly whether the company’s compounding rate gives you a margin of safety if growth disappoints. A 3% yield against 85% revenue growth, as in NVIDIA’s case, leaves room to be partly wrong. A sub-1% yield against high-single-digit earnings growth, as in Tesla’s case, requires faith in optionality measured in decades. The pairing of multiple and growth rate is the entire game.
When a Sequoia Capital partner compares a freshly public stock to NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) three years ago, investors pay attention. That is exactly what Sean MacGuire did on CNBC this week, arguing that “SpaceX right now is more like Nvidia three years ago than Tesla.” He went further on his personal positioning, adding, “Me as an individual, I’m going to hold my shares forever.”
NVIDIA traded at $42.69 on June 16, 2023 and closed at $204.40 on June 12, 2026. MacGuire is telling viewers that SpaceX is sitting at the same kind of inflection.
The Newly Public SpaceX Trade SpaceX (NASDAQ:SPCX) made its market debut on Friday, June 9, 2026, and the tape has been hot. Shares added more than $400 billion in market value yesterday. They’re up another 13% today as of 1:00 p.m. ET. At its IPO price of $135, SpaceX was valued at $1.77 trillion. Today, shares are worth $2.85 trillion. That’s worth more than Amazon and only slightly behind Microsoft.
That valuation is being supported by a real, if early, financial engine. According to the company’s S-1, full-year 2025 revenue grew 33.2%, with the Connectivity segment alone adding $3.788 billion as Starlink subscribers expanded from 4.4 million to 8.9 million over the year. By the first quarter of 2026, subscribers had reached 10.3 million and Connectivity segment adjusted EBITDA hit $2,087 million for the quarter.
MacGuire has some reasons to believe the company could hit very outsized targets in the future.
MacGuire’s Inflection Thesis The current run rate is approximately $18.5 billion annually. MacGuire projects revenue could reach the hundreds of billions of dollars by 2030, a view that is his forecast rather than guidance from the company. He also said Q4 2026 should show nearly 200% year-over-year growth versus Q1 2026, driven by three converging catalysts:
Starship. The S-1 confirms SpaceX expects Starship to commence payload delivery to orbit in the second half of 2026, with milestones already including booster catch-and-reuse and in-space cryogenic propellant transfer. MacGuire characterized the program as already far along and “guaranteed to work,” a confidence level that remains his opinion. Orbital data centers. SpaceX is openly pursuing orbital AI compute at scale and AI chip manufacturing, though the S-1 cautions these initiatives are in early stages and may never reach commercial viability. Starlink direct-to-cell. Starship enables deployment of next-generation V3 satellites and direct-to-cell constellations, expanding the addressable market beyond rooftop terminals. Why The NVIDIA Comparison Has Teeth NVIDIA’s last reported quarter showed why the analogy is provocative. Q1 FY2027 revenue hit $81.61 billion, up 85.2% year over year, with Data Center revenue of $75.25 billion growing 92%, per the company’s SEC filing. Non-GAAP gross margin expanded to 75.0%, and the company guided Q2 to $91.0 billion. NVIDIA now carries a market cap near $5.1 trillion at a forward P/E of 23x. In short, NVIDIA is not longer ‘priced for extreme growth,’ but has been growing faster than SpaceX in recent quarters and is significantly larger.
The bull case MacGuire is articulating: SpaceX owns the launch monopoly, the satellite broadband leader, and an emerging AI infrastructure layer in orbit, all wrapped into one platform business at a moment when the next leg of capex is finally beginning to inflect revenue. NVIDIA may have captured the majority of value in the first wave of AI, but McGuire’s thesis is that SpaceX will capture a brand new opportunity in the next.
The Risks Behind The Hold-Forever Conviction Investors should treat the hold-forever line and the hundreds-of-billions revenue figure as one prominent VC’s conviction call, not company guidance. SpaceX itself flags substantial execution risk on Starship reusability, regulatory cadence, and unproven markets like lunar logistics and orbital compute. The S-1 also discloses a 2025 net loss of $4,937 million as R&D and depreciation ramped.
Reddit sentiment on SPCX is currently 44.80 (Neutral) weekly, with top posts already debating whether the IPO is “literally free money.” That is the kind of retail enthusiasm that often greets generational-comparison trades. Whether SPCX really becomes the next NVIDIA depends on Starship payload delivery hitting the back half of 2026 on schedule. That is the single milestone worth tracking next.
Artificial intelligence (AI) infrastructure spending is booming, and two of the companies with leading chips in this field are Nvidia (NVDA 2.16%) with its graphics processing units (GPUs) and Alphabet (GOOGL +1.10%) (GOOG +1.09%) with its Tensor Processing Units (TPUs). The success of both is undeniable, as they are the two largest companies in the world by market cap as of this writing.
Let's examine both AI stocks to see which one looks like the better one to own over the next five years.
Image source: The Motley Fool.
Nvidia: The AI infrastructure king Nvidia has been the biggest winner of the AI infrastructure boom thus far, and it remains incredibly well positioned for the future. The company has created a wide moat in AI model training through its CUDA software platform, as most early foundational AI code was written on its software and optimized for its chips. Given this, its dominant position in this market is unlikely to be seriously tested.
The growth it has seen as a result of this has just been staggering. For its first quarter of fiscal year 2027 (ended April 2026), Nvidia grew its revenue by a robust 85% to $81.6 billion. What is even more impressive is that its revenue has grown by more than 11 times in the past three years, from $7.2 billion in fiscal Q1 2024. While its GPUs have led the way with this growth, its data center networking business has actually been its fastest-growing product line, with revenue nearly tripling last quarter to $15 billion.
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Nvidia hasn't been sitting still, and that is one of the big reasons why the company is so well positioned for the future. Seeing the rise of the market for inference, the company smartly "acquired" Groq, whose chips are nicely designed to handle the decode phase of inference. In addition, it has also designed its own Arm-based central processing units (CPUs) to help handle agentic AI. Together with its robust networking portfolio and CUDA ecosystem, it can now offer end-to-end server solutions to handle specific AI tasks, including training, inference, and agentic AI.
Nvidia is no longer just a GPU designer; it is now a complete AI infrastructure player.
Alphabet: The complete AI company Alphabet is obviously much more than a chipmaker; the company is best known for its Google search engine. However, it is its custom TPU AI accelerators that have given the company a big advantage in the AI race.
TPUs are ASICs (application-specific integrated circuits), which are hardwired chips designed to handle specific tasks. They cannot be reprogrammed like GPUs, but they can offer strong performance at a lower cost and tend to be more energy efficient. Alphabet developed its TPUs with the help of Broadcom more than a decade ago and has optimized its entire hardware and software stack around them.
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Alphabet is benefiting from its TPUs in a few ways. The first is that they offer a significant cost advantage over competitors that rely on Nvidia's GPUs for both AI model training and inference. Second, it gives the company a cost edge in its cloud computing segment, where it can also offer customers not only Nvidia GPU-powered infrastructure but also cheaper TPU-powered offerings that carry higher margins. Finally, Alphabet has also let a few select customers, most notably Anthropic, purchase its TPUs directly from Broadcom for deployment within and outside Google Cloud, giving it a new high-margin revenue stream.
The verdict Whether Nvidia or Alphabet stock outperforms over the next five years could largely depend on how high AI infrastructure spending soars. While Nvidia is starting to see more legitimate competitors in areas like inference, I think it still takes a big share of the pie. Meanwhile, at a forward P/E of 16 times for fiscal 2028 (ending January 2028), the stock is relatively cheap.
However, Alphabet has an advantage with a complete AI stack, and if AI infrastructure overspending occurs, it can rent it to others or use it internally. Also, if AI infrastructure spending moderates, it is likely to be a winner because it has been one of the big spenders, and reducing capital expenditures (capex) will boost its free cash flow.
I like both stocks here, but I think Alphabet probably has a more durable model and could be a winner if AI capex moderates, giving it a slight edge.
The artificial intelligence (AI) revolution has made Nvidia (NVDA 2.16%) the world's largest public company at a market cap of approximately $5 trillion today. That's a share price of $205, thanks to stock splits. But despite Nvidia's historic run these past several years, there could be more upside ahead.
How much? Wall Street analysts have 12-month price targets as high as $743 per share. It's a lofty number to say the least. That's more than triple today's stock price, and would value Nvidia at over $15 trillion, an unprecedented valuation.
Here's a look at what's likely driving these ambitious price targets, and how likely Nvidia stock is to actually reach $700 per share over the coming year.
Image source: The Motley Fool.
The Vera Rubin boom is coming Nvidia's business is at an exciting threshold right now. The company's next-generation AI chip platform, Vera Rubin, is in full production and poised to start shipping in the coming months. Vera Rubin consists of six total chips that combine to create an AI supercomputer designed for agentic AI and inference workloads. It also expands Nvidia's chip footprint across the server rack. It's a significant growth catalyst at a time when the AI industry is moving from training to inference.
NVDA Revenue (TTM) data by YCharts
CEO Jensen Huang has said that Nvidia expects $1 trillion in total orders between Vera Rubin and its current-generation flagship architecture, Grace Blackwell, by 2027. Such a large pipeline points to tremendous revenue growth ahead for Nvidia, which generated $253.5 billion in total sales over the past 12 months.
Why the price target isn't the point
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Sure, Nvidia stock could reach $700 over the next year, but that depends a lot on its valuation.
Nvidia trades at 20 times its trailing 12-month sales, and that ratio would need to increase significantly to get shares to $700 over the next year, even with all that projected growth ahead. The stock has traded at higher multiples on its sales before, but that's harder for a stock to sustain as the numbers grow larger. It seems that $700 per share is definitely doable, but probably not in the next 12 months.
But that shouldn't be the primary focus. Price targets are eye-catching, but investors should instead concentrate on the company's broader direction. Nvidia is about to enter yet another growth phase as Vera Rubin begins impacting sales over the next several quarters. That's probably why 94% of the 69 Wall Street analysts surveyed by CNN Business rate the stock as a buy today. Wall Street isn't always right, but in Nvidia's case, the future still looks plenty bright enough to buy the stock.
CoreWeave is rated a Strong Buy, driven by exceptional demand, a $99.4B backlog, and a unique NVIDIA partnership. CRWV's forward EV/S of 6.93 is deeply discounted versus peer Nebius at 17.34, supporting a price target of $266.78—150% upside. NVIDIA's 11% stake, priority hardware access, and unsold GPU capacity backstop de-risk CRWV's growth and capital deployment.
Since the dawn of artificial intelligence (AI) in early 2023, Nvidia (NVDA 2.16%) has emerged as the de facto poster child for the space. The company's graphics processing units (GPUs), which were originally designed to create lifelike images in video games (ergo the name), have been repurposed to provide the sheer number-crunching capabilities needed to train and run AI models.
During that time, Nvidia's financial results have been on quite a tear, with a 1,250% increase in revenue and a 4,000% jump in net income. These blistering financial results have driven the stock up 1,320%, enriching shareholders along the way. Indeed, some investors have begun to wonder if the remaining upside is limited, especially since Nvidia is already the world's largest public company with a market cap of $5 trillion (as I write this).
However, Nvidia claims to have clear visibility into its sales over the coming two years, and the numbers are staggering.
Image source: Getty Images.
The data center is driving this train While Nvidia's GPUs are the face of the company's success, it's the company's comprehensive, full-stack approach that has kept the competition at bay. Nvidia combines its processors with a host of accessories and software that ensure optimal performance from its industry-leading GPUs.
The company has mastered the concept of parallel processing, a technique for subdividing large computational tasks into smaller, more manageable tasks, which are then assigned to multiple cores and processed in parallel by the GPU. This accelerates intensive workloads, completing them more quickly than would otherwise be possible. This is the "secret sauce" that has enabled AI to thrive and fueled Nvidia's epic run.
Currently, the vast majority of AI processing takes place in the data center. This has, in turn, fueled the ongoing data center boom, with spending expected to reach $7 trillion by 2030, according to McKinsey & Company. Not surprisingly, Nvidia commands a significant share of the data center GPU space. While estimates vary, the company controls between 85% and 92% of the market.
Nvidia CEO Jensen Huang has made no secret about what's to come over the next couple of years, and the implications are clear. Huang said:
We have $500 billion dollars' worth of visibility. And at this point, at this point, with another 21 more months to go to the end of (calendar) 2027, we already have high confidence, high confidence visibility of $1 trillion plus of Blackwell and Rubin, not anything else, just Blackwell and Rubin.
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Fun with numbers Using Huang's forecast as a starting point, we can run the numbers to estimate Nvidia's stock price by the end of next year.
For its fiscal 2027 first quarter (ended April 26), the company generated record revenue of $81.6 billion, up 85% year over year. This suggests that Nvidia expects to generate the remaining $918 billion over the next seven quarters.
Running the numbers reveals it will take roughly 12% sequential growth in each of the next seven quarters to generate total revenue of $1 trillion over two years. Mathematically, Nvidia would generate revenue of roughly $389 billion in 2026 and $611 billion in 2027. That works out to 80% growth this year and 57% next year, which isn't hard to imagine, given the 85% growth it delivered in the first quarter.
Nvidia currently has a market cap of $5 trillion and a forward price-to-sales (P/S) ratio of 20 (as of this writing). If its P/S ratio remains constant, and if Nvidia were to generate revenue of $611 billion in 2027 -- which isn't a given -- its stock price could jump 138% to $506 per share. That would push the company's market cap to roughly $12.3 trillion.
Don't take my word for it. Beth Kindig, founder and lead tech analyst at the I/O Fund, has done the math and believes Nvidia will be a $20 trillion company by the end of the decade.
The key reason that Nvidia can reach a $20 trillion market cap by 2030 is because the company is moving its GPU generation cadence to a rapid 12-18 month cycle compared to custom silicon, which is typically on a 3-5 year cycle.
The company's relentless research and development cycle has been the driver that has kept Nvidia ahead of the competition in the race to dominate AI -- and its reign is likely just beginning.
The usual caveats Just to reiterate, this is all fun with numbers, but it helps to illustrate that there's a long runway of growth ahead for Nvidia. Furthermore, any changes to the underlying assumptions could drastically alter the outcome.
Rivals are working feverishly to capture their share of this sizable opportunity. This comes in the form of rival GPUs, Application-Specific Integrated Circuits (ASICs), and more. That said, even if Nvidia doesn't reach that lofty benchmark next year, its growth trajectory is hard to deny.
Moreover, at just 23 times forward earnings and 16 times next year's expected earnings, Nvidia is a bargain. The accelerating adoption of AI and the company's long track record make it clear that Nvidia is an opportunity investors shouldn't sleep on.
American Airlines (AAL - Free Report) closed the most recent trading day at $15.71, moving +1.62% from the previous trading session. This change outpaced the S&P 500's 0.57% loss on the day. Meanwhile, the Dow experienced a rise of 0.64%, and the technology-dominated Nasdaq saw a decrease of 1.15%.
The world's largest airline's shares have seen an increase of 25.08% over the last month, surpassing the Transportation sector's gain of 7.16% and the S&P 500's gain of 2.14%.
The investment community will be paying close attention to the earnings performance of American Airlines in its upcoming release. The company is forecasted to report an EPS of $0.06, showcasing a 93.68% downward movement from the corresponding quarter of the prior year. Alongside, our most recent consensus estimate is anticipating revenue of $16.68 billion, indicating a 15.88% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.07 per share and revenue of $61.94 billion. These totals would mark changes of -119.44% and +13.38%, respectively, from last year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for American Airlines. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 62.97% increase. American Airlines currently has a Zacks Rank of #3 (Hold).
The Transportation - Airline industry is part of the Transportation sector. This group has a Zacks Industry Rank of 210, putting it in the bottom 14% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
The AT&T is displayed on the facade of one of its branches in Mexico City, Mexico September 10, 2025. REUTERS/Henry Romero Purchase Licensing Rights, opens new tab
June 16 (Reuters) - Telecom provider AT&T (T.N), opens new tab said on Tuesday Pascal Desroches will retire as CFO at the end of 2026 and that Jennifer Biry would succeed him.
Here are more details:
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Jennifer Biry, the former CFO of McAfee, is set to become AT&T's CFO at the start of 2027, according to a company filing.
Biry was appointed AT&T's deputy CFO on Monday.
She has held a senior-level positions at AT&T since 1999 in finance, sales and strategy.
She also served as CFO of WarnerMedia from 2020 to 2022 when it was an AT&T unit
Desroches, whose retirement is effective December 31, joined AT&T in 2021, leading cost cuts, balance sheet simplification and major 5G and fiber investments
Reporting by Juby Babu in Mexico City and Sumit Saha in Bengaluru; Editing by Leroy Leo and Anil D'Silva
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Investors in 3M Company (MMM - Free Report) need to pay close attention to the stock based on moves in the options market lately. That is because the Jun 18, 2026 $65 Call had some of the highest implied volatility of all equity options today.
What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It could also mean there is an event coming up soon that may cause a big rally or a huge sell-off. However, implied volatility is only one piece of the puzzle when putting together an options trading strategy.
What do the Analysts Think?Clearly, options traders are pricing in a big move for 3M shares, but what is the fundamental picture for the company? Currently, 3M is a Zacks Rank #3 (Hold) in the Diversified Operations industry that ranks in the Bottom 40% of our Zacks Industry Rank. Over the last 60 days, the Zacks Consensus Estimate for the current quarter has moved from $2.23 per share to $2.24 in that period.
Given the way analysts feel about 3M right now, this huge implied volatility could mean there’s a trade developing. Oftentimes, options traders look for options with high levels of implied volatility to sell premium. This is a strategy many seasoned traders use because it captures decay. At expiration, the hope for these traders is that the underlying stock does not move as much as originally expected.
Netflix (NFLX 3.59%), a streaming entertainment services provider, closed Tuesday at $78.72, down 3.61%. Shares moved lower as investors reacted to reports of failed and potential media acquisitions alongside legal headlines. They are scrutinizing how future deal-making and litigation could affect cash deployment and strategy.
Trading volume reached 64.4 million shares, coming in about 68% above its three-month average of 38.2 million shares. Netflix IPO'd in 2002 and has grown 65,697% since going public.
How the markets moved todayThe S&P 500 (^GSPC 0.57%) fell 0.57% to 7,511, while the Nasdaq Composite (^IXIC 1.15%) lost 1.15% to finish at 26,376. Among entertainment industry peers, Walt Disney (DIS 0.40%) closed at $101.28, down 0.40%, and Warner Bros. Discovery (WBD 0.86%) ended at $26.6, slipping 0.86% as investors reassessed streaming competition and consolidation.
What this means for investorsInvestors seemed pleased earlier this year when Netflix declined to participate in a bidding war for Warner Bros. Discovery, allowing Paramount Skydance (PSKY 1.81%) to acquire that media giant. But new reports that Netflix was also interested in buying Roku (ROKU 2.09%) before being outbid by Fox (FOX 4.01%) seem to have raised investor concerns.
Warner Bros. was billed by Netflix management as a “nice to have” property, making it seem smart not to participate in the bidding process. Netflix, in fact, pocketed a $2.8 billion breakup fee after Warner Bros. pivoted to Paramount’s bid.
Investors are now questioning its strategic position, though, if reports are true that it was also seeking to acquire Roku. Rumors that Netflix could also be looking at Lionsgate Studios (LION +13.85%) only exacerbated those concerns.
At the same time, Tyra Banks has initiated a defamation lawsuit against Netflix, adding to headline risk. That, and growing streaming competition, had Netflix stock sinking today.
Howard Smith has positions in Netflix, Roku, and Walt Disney and has the following options: short July 2026 $150 calls on Roku. The Motley Fool has positions in and recommends Netflix, Roku, Walt Disney, and Warner Bros. Discovery. The Motley Fool has a disclosure policy.
A pricey acquisition agreed to by two peers in the entertainment industry has left Netflix (NFLX 3.59%) in the cold, and Mr. Market punished the company for it on Tuesday. That, plus a media report stating that the video streaming giant tried but failed to buy the target company in that deal, pushed its stock down by nearly 4%.
Outfoxed? That acquisition was announced before market open Monday. Legacy media and entertainment company Fox Corporation is buying video streaming company Roku in a cash-and-stock deal valued at $22 billion.
Image source: Getty Images.
The deal has been approved by the boards of directors of both businesses and is anticipated to close in the first half of next year.
Compounding that, news site Semafor reported on Tuesday that Netflix also pursued Roku, but its advances were rebuffed. Quoting unidentified "people involved in the sale process," Semafor wrote that it was unclear how much Netflix had bid for the company, though one of its sources said its bid was below the $160-per-share price Fox offered.
Netflix has not yet made any official comment about the report.
Today's Change
(
-3.59
%) $
-2.93
Current Price
$
78.74
Opportunity cost If I were a Netflix shareholder, though, I'd be at least somewhat relieved that the company didn't spend a mountain of capital on a Roku deal.
Despite the obvious advantages of owning such a complementary asset, the regulatory path to approval would have been more challenging than that for Fox, even in the current climate that seems favorable for big media mergers. After all, Netflix is already a powerful presence in video streaming, and there would have been concerns about market dominance.
Meanwhile, Netflix might still be actively looking to expand. In the Semafor article, the news site said that the company is mulling a possible play for TV and film studio Lionsgate. Later in the day, however, Netflix denied this.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Roku. The Motley Fool has a disclosure policy.
PURCHASE, N.Y.--(BUSINESS WIRE)--Mastercard Incorporated (NYSE: MA) today announced that its Board of Directors has declared a quarterly cash dividend of 87 cents per share. The cash dividend will be paid on August 7, 2026 to holders of record of its Class A common stock and Class B common stock as of July 9, 2026.
About Mastercard (NYSE:MA)
Mastercard powers economies and empowers people in 200+ countries and territories worldwide. Together with our customers, we’re building a resilient economy where everyone can prosper. We support a wide range of digital payments choices, making transactions secure, simple, smart and accessible. Our technology and innovation, partnerships and networks combine to deliver a unique set of products and services that help people, businesses and governments realize their greatest potential.
Forward Looking Statements
Statements in this press release which are not historical facts are forward-looking and subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this press release, the words “believe”, “expect”, “could”, “may”, “would”, “will”, “trend” and similar words are intended to identify forward-looking statements. Forward-looking statements speak only as of the date they are made, and the company undertakes no duty to update any forward-looking statements made in this press release or to conform such statements to actual results or changes in the company’s expectations.
MasterCard (MA - Free Report) closed at $501.33 in the latest trading session, marking a +2.18% move from the prior day. The stock's performance was ahead of the S&P 500's daily loss of 0.57%. Elsewhere, the Dow gained 0.64%, while the tech-heavy Nasdaq lost 1.15%.
The stock of processor of debit and credit card payments has fallen by 3% in the past month, lagging the Business Services sector's gain of 0.13% and the S&P 500's gain of 2.14%.
Investors will be eagerly watching for the performance of MasterCard in its upcoming earnings disclosure. The company's upcoming EPS is projected at $4.76, signifying a 14.70% increase compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $9.06 billion, indicating a 11.41% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of $19.6 per share and a revenue of $36.99 billion, demonstrating changes of +15.23% and +12.8%, respectively, from the preceding year.
Investors should also take note of any recent adjustments to analyst estimates for MasterCard. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. 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, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0% upward. MasterCard is holding a Zacks Rank of #3 (Hold) right now.
Investors should also note MasterCard's current valuation metrics, including its Forward P/E ratio of 25.03. This indicates a premium in contrast to its industry's Forward P/E of 10.55.
One should further note that MA currently holds a PEG ratio of 1.53. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Financial Transaction Services industry currently had an average PEG ratio of 0.77 as of yesterday's close.
The Financial Transaction Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 57, placing it within the top 24% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
Over 3,000 members now subscribe to the DCodex strategy service, with approximately $20 million in capital currently deployed through the system — all transactions publicly verifiable in real time via the DCodex DApp
SAN JOSE, Calif., June 16, 2026 (GLOBE NEWSWIRE) -- DCodex, a blockchain-based financial infrastructure company, today announced the official launch of DPay, a Visa-network-powered USDT commercial debit card designed to bridge on-chain crypto assets with real-world payment scenarios. The launch comes as DCodex's strategy service surpasses 3,000 subscribed members, with approximately $20 million in capital currently deployed through the system, which recorded a 13% return for the most recent monthly period with a 93.7% execution success rate.
Key Highlights
Subscribed Members: 3,000+Capital Deployed Through the Strategy System: approximately $20 millionMost Recent Monthly Return: 13%Strategy Execution Success Rate: 93.7%Community Partners: 38 YouTubers, 50 communities across Asia, Africa, Europe, and the AmericasOn-Chain Transparency: All transaction data publicly verifiable in real time via the DCodex DApp Full On-Chain Transparency: Every Transaction, Every Day
In a market where self-reported performance data is common and difficult to verify, DCodex takes a fundamentally different approach. Every transaction executed by the DCodex MEV engine is recorded on-chain and accessible to any user in real time through the DCodex DApp. Daily transaction logs, execution records, and strategy performance data are openly available — requiring no trust in the company's own reporting.
"We do not ask anyone to trust our numbers," said a DCodex spokesperson. "Every trade is on-chain. Open the DApp and verify it yourself. That is the only standard that matters in this industry."
DPay: From On-Chain Profits to Real-World Spending
DPay is a Visa Business System-powered USDT commercial debit card that allows users to spend cryptocurrency directly at any Visa-accepting merchant worldwide — without manual conversion. The card supports higher daily spending limits and ATM withdrawal thresholds compared to standard consumer cards, making it suitable for high-frequency transactions and global capital circulation.
DPay completes the DCodex capital circulation loop: the strategy system generates on-chain returns, which subscribed members can now deploy directly in real-world spending through DPay — without ever leaving the ecosystem.
Strategy System Performance
DCodex's proprietary strategy engine — comprising a strategy recognition layer, execution engine layer, and security assurance layer — recorded a 13% return for the most recent monthly period with a 93.7% execution success rate. The system operates on a non-directional model that does not rely on predicting market trends, generating returns through arbitrage and liquidation-related opportunities across decentralized markets.
All transactions execute through a private mempool to prevent front-running, with multi-path simulation and backtesting mechanisms to minimize failed transaction risk. The system operates continuously and all activity remains publicly verifiable on-chain.
Global Community: Four Continents, 50 Communities, 38 Content Creators
DCodex's global community infrastructure now spans four continents, with over 38 YouTube content creators and 50 active communities across Asia, Africa, Europe, and the Americas collectively driving awareness and user growth. In the past month alone, DCodex conducted on-the-ground community events in seven countries: Vietnam, South Korea, Japan, China, Singapore, Spain, and Germany.
This distributed community model — built on organic creator partnerships rather than centralized marketing spend — reflects DCodex's strategy of grassroots ecosystem growth ahead of institutional-scale expansion.
About DCodex
DCodex is a blockchain-based financial infrastructure company specializing in strategy-driven on-chain arbitrage and crypto payment solutions. With over 3,000 subscribed members, approximately $20 million in capital deployed through its strategy system, and a globally distributed community across four continents, DCodex delivers a fully integrated financial ecosystem: strategy-based returns, asset management, and real-world payment utility through DPay.
Disclaimer: This sponsored content is provided by the content provider and does not necessarily reflect the views of this media platform or its publisher. The information is shared for general informational purposes only and should not be considered financial, investment, or trading advice. Cryptocurrency and mining-related activities carry risks, including the potential loss of capital, and readers are encouraged to conduct their own research and seek professional advice where appropriate. Speculate only with funds that you can afford to lose.The media platform and publisher assume no responsibility for any losses or claims arising from reliance on this content. GlobeNewswire does not endorse any content on this page.
Legal Disclaimer: This article is provided on an “as-is” basis, without warranties or representations of any kind, express or implied. The media platform assumes no responsibility or liability for the accuracy, content, completeness, legality, or reliability of the information presented. Any complaints, claims, or copyright concerns related to this article should be directed to the content provider mentioned above.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/e0f59730-c166-43ff-ab17-37029de58258
If you have $2,500 to put into payments networks today, the choice between Visa (NYSE:V | V Price Prediction) and Mastercard (NYSE:MA) is sharper than usual.
Both just posted Q1 FY2026 results that beat estimates, both leaned on resilient cross-border spending, and both rolled out new platforms aimed at agentic commerce and stablecoins. The businesses, however, are pulling in different directions.
Cross-Border Strength Carried Both, But the Mix Differs Visa’s quarter, reported January 29, 2026, delivered net revenue of $10.90 billion, up 14.6% year over year, with non-GAAP EPS of $3.17. The standout line was Data Processing Revenue at $5.544 billion, up 17%, which is the network’s highest-margin engine.
CEO Ryan McInerney framed the platform pivot directly: “Our purposeful investments in our Visa as a Service stack continue to position us as a payments hyperscaler.” A $707 million litigation provision tied to the interchange MDL case continues to weigh on GAAP results.
Mastercard’s quarter, reported April 30, 2026, landed net revenue of $8.40 billion, up 15.8%, with adjusted EPS of $4.60, a 4.24% beat. The real story is Value-Added Services and Solutions, up 22% year over year.
CEO Michael Miebach pointed to two specific bets: “advancing agentic commerce with Mastercard Agent Pay and expanding our stablecoin solutions through the planned acquisition of BVNK.”
Scale Leader vs. Services Builder Visa is the heavyweight, with $613.1 billion in market cap and 69.4 billion processed transactions in the quarter alone. The buyback machine repurchased roughly 11 million shares for $3.8 billion.
Mastercard plays the higher-growth, higher-margin role. Adjusted operating margin reached 60.8%, up from 59.3%, and capital returns totaled $4 billion in buybacks plus $777 million in dividends. A $202 million restructuring charge and Pillar 2 tax pressure complicate the bottom line.
Business Driver Visa Mastercard Cross-border volume growth +11% ex-Europe +13% local currency Main growth engine Data Processing (+17%) Value-Added Services (+22%) Strategic flagship Visa as a Service Mastercard Agent Pay, BVNK Valuations sit remarkably close. Visa trades at a P/E of 28 with a forward multiple of 22. Mastercard carries a trailing P/E of 28 and forward 25. Both have been under pressure: Visa is down 7.7% year to date, while Mastercard has slid 13.89%.
What I’m Watching Next I want to see whether Visa’s Data Processing line keeps printing 17% growth as AI commerce and tokenization scale, and whether the litigation provision tapers.
For Mastercard, I’ll be watching whether BVNK closes cleanly and whether Agent Pay actually drives merchant adoption rather than just headlines. Analyst price targets sit at $398.83 for Visa and $644.89 for Mastercard, implying meaningfully more upside for the smaller network.
Why I’d Split the $2,500 Toward Mastercard, With Caveats If I had to pick one with fresh capital today, I lean Mastercard. The 22% growth in value-added services and the cleaner pivot into agentic commerce look like the more interesting growth story, and the wider YTD pullback gives a better entry.
Visa is the more defensive name for a conservative investor who wants beta of 0.77, a steady dividend, and dominant scale. Neither is cheap, and if interchange litigation or stablecoin disruption accelerates, I’d want to see another quarter before adding aggressively.
Three out of four healthcare payouts still go out by check.
Only 5% to 12% move in real-time, according to the PYMNTS Intelligence report “The Power of Now: Moving Money at the Speed of Life.” That gap, between where the industry is and where patients expect it to be, is the defining fault line in healthcare disbursements today. It’s a problem Visa Direct has firmly put on its agenda.
“Payouts impact so many people,” Edward Galvin, vice president, Visa Commercial Solutions NA, told PYMNTS CEO Karen Webster, describing a sector he characterized as “a very complicated space right now.”
It’s tangled in regulation, fragmented technology and an ecosystem that often works against itself.
Webster asked why, in an era of instant everything, do three-quarters of healthcare payouts still rely on paper?
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The answer is deceptively simple.
“People are familiar with checks,” Galvin said. “The providers are familiar with checks. And it’s easy to get the checks out there versus correcting where the inefficiencies are on the system.”
Inertia, in other words, is the enemy of progress.
That reliance carries costs that rarely show up on a balance sheet. Checks introduce delays, increase fraud exposure, and leave providers and patients with no clear view of where their money actually is. The inertia persists because no single entity owns the problem. Everyone feels the friction, but no one is fully accountable for fixing it.
Compliance Complexity Is Slowing the Clock Healthcare payments do not just move slowly; they move carefully. HIPAA and related data privacy requirements constrain how quickly new payment infrastructure can be introduced, even when modern alternatives offer stronger controls.
The irony is that the legacy system it is protecting is riddled with its own vulnerabilities.
“One of the key fraud areas is just in directing funds to the wrong account,” Galvin said, adding that checks carry no native validation layer. Card-based disbursements do and can route money with the kind of precision that reduces fraud and closes the accountability gap.
“Members may have a bank account and a debit card tied to it, and with Visa Direct, that debit card information can be used to deliver funds in real time into the bank account,” he said.
But modernization in healthcare is not a solo act, Galvin said. The entire ecosystem must move together, which is exactly what makes it hard.
The Consumer’s Patience Is Already Gone Patients are not waiting for the industry to catch up. Webster said that “consumers expect real time,” especially when a reimbursement check sitting in transit is directly affecting someone’s ability to pay rent or cover an out-of-pocket expense. “It’s still processing” is no longer an acceptable answer.
Healthcare is, at its core, a high-stakes financial transaction, and patients are starting to treat it that way.
The Data Gap Is Stark Research from PYMNTS Intelligence, conducted with the support of Visa Direct, found that while real-time payouts have accelerated in industries from insurance to gig economy to retail, healthcare is trailing the field.
Today, approximately 12% of healthcare payouts are delivered in real time. That figure is expected to reach about 33% within three years. Better, but still not good enough.
Chief financial officers navigating this transition “want to be able to quantify and understand how you can get rid of the friction,” Galvin said. That means KPIs tied to speed, fraud reduction, data accuracy and end-to-end customer experience.
The challenge does not shrink with transaction size. Whether it is a large provider reimbursement or a routine flexible spending account (FSA) disbursement, the friction, risk and opacity are consistent. Scale does not solve it.
Where Pilots Are Gaining Traction Progress is happening, even if it is uneven. Galvin pointed to FSAs and health savings accounts (HSAs) as the clearest near-term opportunities, high-volume, lower-dollar use cases that are ideal testing grounds for real-time models.
These pilots are revealing the true cost of doing nothing. Faster payments do not just move money more efficiently; they reduce inbound customer service load, build trust and shrink the tail risk that comes from funds in limbo.
“There’s a massive cost that’s not recognized and not seen today,” Galvin said, referring to the cumulative impact of delays, errors and customer service burdens.
The Ecosystem Is Starting to Align Change is incremental, but it is no longer theoretical. Galvin said he sees a convergence happening, one where CFO pressure, patient expectations and technology capability are finally pointing in the same direction.
“It’s really the various players in the ecosystem coming together to support getting there,” he said.
Healthcare has been the last holdout in the real-time payments revolution. The check, it turns out, may have a limited shelf life after all.
, /PRNewswire/ -- The Kansas City Current and Bank of America announced a multi-year partnership renewal on Tuesday, set to celebrate community impact and grow the game of soccer nationwide. Bank of America will continue being an official partner of the club as part of the announcement, and the Current will support Bank of America's landmark global sports program, Sports with Us.
Tuesday's announcement reaffirms Bank of America's longstanding commitment to the Current both on and off the pitch. A partner of the Current since 2023, Bank of America and the Current will lead several impactful initiatives throughout the duration of the renewed partnership.
Bank of America has collaborated with the Current on several community initiatives over the last three years. Bank of America frequently serves as a presenting sponsor of KC Current youth soccer clinics, including a combined clinic and equipment donation drive last summer at the 9th & Van Brunt Athletic Fields.
"Renewing our partnership with a world-class, globally known brand like Bank of America represents a significant milestone for our organization," said Kansas City Current Senior Vice President, Commercial Missy Jenkins. "Their steadfast support over the last three years has been extremely meaningful, and we greatly appreciate their continued belief in what we are building here in Kansas City. Our shared community pillars and commitment to youth sports will continue making this partnership resonate across the Heartland."
The Current will also partner with Bank of America to help bring select "Soccer With Us" clinics to life — free, hands-on soccer experiences reaching underserved communities —designed to equip the next generation for success on and off the pitch.
Bank of America maintains a strong regional footprint across the Kansas City area. With 33 locations across the Kansas City metro, Bank of America invests locally to ensure Kansas City is a great place to live, work and do business. Bank of America is also the Official Bank of FIFA World Cup 2026 ™ — supporting all 106 matches across North America — making a huge economic impact and inspiring the next generation of soccer players.
"Bank of America is greatly invested in the Kansas City community, and our renewed partnership with the Kansas City Current allows us to strengthen that commitment," said Matt Linski, president, Bank of America Kansas City. "We look forward to continuing our work together, especially through initiatives like 'Soccer with Us,' to empower our youth and foster a love for the sport, building on the excitement for the 2026 FIFA World Cup."
Bank of America will also work with the Current to secure an entitlement night during an upcoming 2026 regular season home match at CPKC Stadium. More information is forthcoming regarding Current-themed rewards for Bank of America cardholders.
About the Kansas City Current
Founded in December 2020, the Kansas City Current is led by the ownership group of Angie Long, Chris Long, Brittany Mahomes and Patrick Mahomes. The team competes in the National Women's Soccer League (NWSL) and plays its home matches at CPKC Stadium, the first stadium in the world purpose-built for a professional women's sports team. The Kansas City Current won its first NWSL Shield in club history in 2025 to highlight a record-setting regular season. Named The Most Ambitious NWSL Club for three consecutive seasons by ESPN, the Current is proud of its many precedent-setting accomplishments. To receive updates on the Current visit kansascitycurrent.com.
About Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving nearly 70 million clients with approximately 3,500 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 59 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. As the #1 small business lender in the United States (FDIC), Bank of America offers industry leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.
, /PRNewswire/ -- The Kansas City Current and Bank of America announced a multi-year partnership renewal on Tuesday, set to celebrate community impact and grow the game of soccer nationwide. Bank of America will continue being an official partner of the club as part of the announcement, and the Current will support Bank of America's landmark global sports program, Sports with Us.
Tuesday's announcement reaffirms Bank of America's longstanding commitment to the Current both on and off the pitch. A partner of the Current since 2023, Bank of America and the Current will lead several impactful initiatives throughout the duration of the renewed partnership.
Bank of America has collaborated with the Current on several community initiatives over the last three years. Bank of America frequently serves as a presenting sponsor of KC Current youth soccer clinics, including a combined clinic and equipment donation drive last summer at the 9th & Van Brunt Athletic Fields.
"Renewing our partnership with a world-class, globally known brand like Bank of America represents a significant milestone for our organization," said Kansas City Current Senior Vice President, Commercial Missy Jenkins. "Their steadfast support over the last three years has been extremely meaningful, and we greatly appreciate their continued belief in what we are building here in Kansas City. Our shared community pillars and commitment to youth sports will continue making this partnership resonate across the Heartland."
The Current will also partner with Bank of America to help bring select "Soccer With Us" clinics to life — free, hands-on soccer experiences reaching underserved communities —designed to equip the next generation for success on and off the pitch.
Bank of America maintains a strong regional footprint across the Kansas City area. With 33 locations across the Kansas City metro, Bank of America invests locally to ensure Kansas City is a great place to live, work and do business. Bank of America is also the Official Bank of FIFA World Cup 2026 ™ — supporting all 106 matches across North America — making a huge economic impact and inspiring the next generation of soccer players.
"Bank of America is greatly invested in the Kansas City community, and our renewed partnership with the Kansas City Current allows us to strengthen that commitment," said Matt Linski, president, Bank of America Kansas City. "We look forward to continuing our work together, especially through initiatives like 'Soccer with Us,' to empower our youth and foster a love for the sport, building on the excitement for the 2026 FIFA World Cup."
Bank of America will also work with the Current to secure an entitlement night during an upcoming 2026 regular season home match at CPKC Stadium. More information is forthcoming regarding Current-themed rewards for Bank of America cardholders.
About the Kansas City Current
Founded in December 2020, the Kansas City Current is led by the ownership group of Angie Long, Chris Long, Brittany Mahomes and Patrick Mahomes. The team competes in the National Women's Soccer League (NWSL) and plays its home matches at CPKC Stadium, the first stadium in the world purpose-built for a professional women's sports team. The Kansas City Current won its first NWSL Shield in club history in 2025 to highlight a record-setting regular season. Named The Most Ambitious NWSL Club for three consecutive seasons by ESPN, the Current is proud of its many precedent-setting accomplishments. To receive updates on the Current visit kansascitycurrent.com.
About Bank of America
Bank of America is one of the world's leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving nearly 70 million clients with approximately 3,500 retail financial centers, approximately 15,000 ATMs (automated teller machines) and award-winning digital banking with approximately 59 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. As the #1 small business lender in the United States (FDIC), Bank of America offers industry leading support to approximately 4 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and more than 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
For more Bank of America news, including dividend announcements and other important information, visit the Bank of America newsroom and register for news email alerts.
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Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) has rolled out new AI-powered search capabilities across its apps as part of a broader push into AI-native products, with Bank of America analysts saying the update could mark an early step toward a larger search and monetization opportunity within the company’s ecosystem.
Bank of America wrote in a note that Meta’s new “AI Mode” search feature on Facebook allows users to find answers based on public posts across Meta platforms, including Groups and Reels. The feature uses Meta AI, powered by the MuseSpark large language model, to generate responses grounded in publicly shared user content, which the company says is intended to surface real-world perspectives and experiences rather than conventional web-based search summaries.
Alongside the search update, Meta introduced new AI creative tools, including photo and video editing features such as collage templates and automated video montage generation from camera roll content. The company also added AI-driven photo presets that allow users to modify attributes such as clothing, hair, and accessories.
Bank of America described the launch as an “interesting initiative” that leverages real-time public content to improve search relevance, particularly for queries related to products, services, and experiences where Meta’s social graph could provide differentiated context.
The firm added that incremental search activity could also generate new intent signals, potentially improving ad relevance and targeting within Meta’s advertising ecosystem.
The analysts believe that AI-enabled search could represent a long-term growth avenue if Meta is able to drive adoption at scale across its user base.
In a scenario analysis, Bank of America estimated that if Meta’s roughly 3.5 billion daily active users averaged one additional query per day through AI Mode, the feature could generate around 1.3 trillion annual queries. If 20% of those queries were commercial in nature and monetized through advertising, the firm suggested this could translate into approximately 50 billion ad clicks and roughly $15 billion in incremental revenue at a $0.30 cost-per-click assumption, or about 5% of consensus 2027 revenue estimates.
The firm also noted that AI Mode could serve as an entry point into more agentic use cases over time, potentially allowing Meta to play a larger role across the consumer journey from intent formation through to transaction within its closed ecosystem.
Bank of America maintained a ‘Buy’ rating on Meta, pointing to continued product innovation in AI as a key driver of future engagement and monetization.
The firm highlighted upcoming catalysts including consumer agentic product launches, more advanced large language models, the Connect conference in September 2026, and additional detail on Meta’s enterprise AI strategy.
Shares of Meta were little changed at $596 in the early afternoon on Tuesday, down almost 10% so far this year.
Key Takeaways Walmart's global ad business grew 37%, with U.S. ad revenues up 36% in the first quarter. Marketplace sales jumped nearly 50% as sellers spent more than 50% more on advertising. Digital advertising helped Walmart's U.S. gross profit rise 5.6%, and margins expand. Walmart Inc. (WMT - Free Report) is increasingly leveraging its scale in e-commerce and marketplace operations to build a larger advertising business, turning customer traffic and seller activity into a growing source of revenues.
The company’s first-quarter results highlighted strong momentum in retail media, with its global advertising business growing 37%. In the United States, advertising revenues increased 36%, while Walmart Connect delivered 44% growth, excluding VIZIO. The gains significantly outpaced overall company revenue growth, underscoring the expanding role of advertising within Walmart’s broader commerce ecosystem.
The strength reflects continued growth across Walmart’s digital platforms. U.S. e-commerce sales rose 26% during the quarter, while Marketplace sales jumped nearly 50%. As more third-party sellers use Walmart’s platform to reach shoppers, advertising is becoming an increasingly important tool for driving product visibility and customer engagement. Marketplace sellers increased advertising spending by more than 50% in the quarter, supporting the rapid growth of the business.
Advertising is also contributing to a more favorable business mix. Walmart noted that higher digital advertising activity helped support gross margin performance despite increased fuel-related costs. In Walmart U.S., gross profit increased 5.6%, while the gross profit rate expanded 29 basis points, aided by improvements in the business mix that included digital advertising.
The latest quarter reinforces that advertising is becoming a larger part of Walmart’s commerce ecosystem. Supported by strong marketplace growth, rising seller participation and continued digital engagement, the advertising business is emerging as a meaningful contributor to the company’s evolving mix of revenue-generating activities.
How Target and Kroger Are Expanding Retail Media BusinessesTarget Corporation (TGT - Free Report) continues to benefit from growth in its high-margin Roundel media business. In first-quarter fiscal 2026, the company reported nearly 60% growth in Target Plus gross merchandise value. TGT also noted that growth in high-margin revenue streams such as Roundel and Target Plus contributed to gross margin expansion during the quarter, highlighting the increasing importance of these businesses within the company’s digital ecosystem.
The Kroger Co. (KR - Free Report) is also strengthening its retail media operations. The company’s alternative profit businesses, which include media, Kroger Personal Finance and Insights, generated $1.5 billion in operating profit in fiscal 2025. KR expects its media business to deliver double-digit growth in 2026, supported by the continued expansion of its e-commerce operations, which surpassed $16 billion in sales in fiscal 2025.
WMT Stock Price Performance, Valuation & EstimatesShares of Walmart have risen 27.4% over the past year compared with the industry’s growth of 26.3%.
WMT Price Performance Versus Industry
Image Source: Zacks Investment Research
From a valuation standpoint, WMT trades at a forward price-to-earnings ratio of 39.98, higher than the industry’s average of 36.41.
WMT Valuation Compared to Industry
Image Source: Zacks Investment Research
J.P. Morgan Chase is reportedly planning to expand its retail banking operations in Europe.
The bank, the largest in the U.S., aims to add at least three more countries to its operations in Germany and the U.K. by the end of 2030, the Financial Times (FT) reported Tuesday (June 16), citing sources familiar with the matter.
The sources said J.P. Morgan was considering expanding to France, Italy and Spain, but added no decisions have been made on new markets.
As the report notes, the bank launched Chase in the U.K. in 2021 as part of CEO Jamie Dimon’s plans to bring J.P. Morgan’s retail business to places beyond the U.S. An expansion into Germany followed last month.
“It has always been clear to us that we want to introduce Chase not only in the U.K., but also in Germany and other European countries. We have ambitious plans,” Dimon told the German newspaper Handelsblatt in 2023.
While neobanks like Revolut and Monzo bill themselves as digital alternatives to traditional banks, sources say J.P. Morgan thinks it can leverage the lender’s established brand and large balance sheet to bring in new customers.
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“Chase is trying to find that middle space where it can be a more innovative and digital-forward bank, but really lean on the brand of J.P. Morgan,” said one source familiar with its plans.
Research by PYMNTS has charted the rise of digital banking, with such lenders now serving as the main financial institution for 13.8% of U.S. consumers, just ahead of local banks and not far behind regional banks and credit unions.
“National banks still dominate, but fewer than half of consumers say a national bank is their main provider,” PYMNTS wrote earlier this year.
“The rise of digital banks is not evenly distributed across the population. It is driven by younger adults, lower-income households and people without college degrees who appear to value convenience and mobile-first access over branch networks.”
The FT report added that Chase has more than 3 million customers in the U.K., while Marcus, Goldman Sachs’ app-based saving tool, has roughly 1 million British users.
The report also points out that Chase’s potential for growth in Great Britain could be hindered by the county’s ringfencing regulations, requiring banks with more than £35 billion in deposits to isolate retail operations from riskier areas of their business.
J.P. Morgan recently hired Kunal Malani, a former executive at Monzo, to oversee its efforts in the U.K., the report added.
JPMorgan Chase & Co. (JPM - Free Report) has recently been on Zacks.com's list of the most searched stocks. Therefore, you might want to consider some of the key factors that could influence the stock's performance in the near future.
Over the past month, shares of this company have returned +6.2%, compared to the Zacks S&P 500 composite's +2.1% change. During this period, the Zacks Financial - Investment Bank industry, which JPMorgan Chase & Co. falls in, has gained 10%. The key question now is: What could be the stock's future direction?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
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, JPMorgan Chase & Co. is expected to post earnings of $5.39 per share, indicating a change of +8.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.1% over the last 30 days.
The consensus earnings estimate of $22.4 for the current fiscal year indicates a year-over-year change of +10.1%. This estimate has changed -0.1% over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $23.6 indicates a change of +5.4% from what JPMorgan Chase & Co. is expected to report a year ago. Over the past month, the estimate has changed +0.2%.
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 JPMorgan Chase & Co..
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
For JPMorgan Chase & Co., the consensus sales estimate for the current quarter of $48.01 billion indicates a year-over-year change of +6.9%. For the current and next fiscal years, $195.21 billion and $202.38 billion estimates indicate +7% and +3.7% changes, respectively.
Last Reported Results and Surprise HistoryJPMorgan Chase & Co. reported revenues of $49.84 billion in the last reported quarter, representing a year-over-year change of +10%. EPS of $5.94 for the same period compares with $5.07 a year ago.
Compared to the Zacks Consensus Estimate of $48.56 billion, the reported revenues represent a surprise of +2.62%. The EPS surprise was +8.2%.
The company beat consensus EPS estimates in each of the trailing four quarters. The company topped consensus revenue estimates each time over this period.
ValuationWithout considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects.
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.
JPMorgan Chase & Co. is graded F 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.
ConclusionThe 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 JPMorgan Chase & Co.. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
NEW YORK--(BUSINESS WIRE)--As previously announced, JPMorgan Chase & Co. (NYSE: JPM) (“JPMorganChase” or the “Firm”) will host a conference call to review second-quarter 2026 financial results on Tuesday, July 14, 2026 at 8:30 a.m. (ET). The results are scheduled to be released at approximately 7:00 a.m. (ET). The live audio webcast and presentation slides will be available on www.jpmorganchase.com under Investor Relations, Events & Presentations.
JPMorganChase will notify the public that financial results have been issued through its social media outlet @JPMorgan and @Chase on X, and by a press release over Business Wire that will provide the link to the Firm’s Investor Relations website. In addition to being available on the Firm’s Investor Relations website, the earnings results also will be filed with the Securities and Exchange Commission (“SEC”) on a Form 8-K, which will be available on the SEC website at https://www.sec.gov.
The general public can access the conference call by dialing the following numbers: 1 (888) 324 3618 in the U.S. and Canada; +1 (312) 470 7119 for international callers; use passcode 1364784#. Please dial in 15 minutes prior to the start of the call.
The replay will be available via webcast on www.jpmorganchase.com under Investor Relations, Events & Presentations. A replay of the conference call also will be available by telephone beginning at approximately 11:00 a.m. (ET) on July 14, 2026 through 11:59 p.m. (ET) on July 29, 2026 at 1 (800) 391 9851 (U.S. and Canada); +1 (203) 369 3268 (International); use passcode 67371#.
JPMorgan Chase & Co. (NYSE: JPM) is a leading financial services firm based in the United States of America (“U.S.”), with operations worldwide. JPMorganChase had $4.9 trillion in assets and $364 billion in stockholders’ equity as of March 31, 2026. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing and asset management. Under the J.P. Morgan and Chase brands, the Firm serves millions of customers in the U.S., and many of the world’s most prominent corporate, institutional and government clients globally. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
Generally speaking, Tuesday wasn't a memorable day for many stocks. One exception in the banking sector was top American lender JPMorgan Chase (JPM +3.66%), whose stock climbed nearly 4% higher on management's apparent expansion plans. That was more than good enough to beat the S&P 500 index's 0.6% slump.
International reach That morning, the Financial Times published an article stating that JPMorgan has set an ambitious goal for its digital bank to be operational in at least three new European markets within the coming half-decade.
Image source: Getty Images.
Citing unnamed "people familiar with the matter," the business newspaper added that the bank is targeting countries within the 27-member European Union (EU). It specifically mentioned France, Italy, and Spain. Having a presence in those markets would complement its existing operations in the U.K. and Germany.
So-called "neobanks," next-generation lenders with little or no physical presence but a large digital footprint, are popular on that continent. The FT quoted one of its sources as saying that JPMorgan Chase "is trying to find that middle space where it can be a more innovative and digital-forward bank, but really lean on the brand of JPMorgan."
Today's Change
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Patience is a virtue Five years sounds like quite a long time to roll out a set of financial services; however, speaking as a former employee of a European bank, I'm not surprised. After all, the sector is heavily regulated throughout the continent, and it's often not easy to build or expand a presence there.
JPMorgan's plans are sensible and will surely enhance its business, though we can expect the rollout to proceed slowly. Given that, I wouldn't trade in or out of the bank's stock solely on this apparent development.
JPMorgan Chase is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.
