Track market-moving stories before they get noisy

Key Takeaways ALB generated $248M in Q1 free cash flow and ended the quarter with $2.7B liquidity.Albemarle's 2026 free cash flow is expected to be supported by higher lithium prices and productivity.ALB targets 2026 operating cash flow conversion within its 60-70% long-term range at $20 per kg lithium price. Albemarle Corporation (ALB - Free Report) remains committed to driving shareholder value by leveraging solid liquidity and healthy cash flows. At the end of the first quarter of 2026, ALB had liquidity of around $2.7 billion, including cash and cash equivalents of around $1.1 billion. It generated an operating cash flow of $346 million and free cash flow of $248 million in the quarter.

ALB generated free cash flow of $692 million for full-year 2025, driven by strong cash conversion, lower capital spending and productivity measures. Free cash flow in 2026 is expected to be supported by the recent uptick in lithium prices, strong cash conversion and productivity. Its ability to convert improving operating performance into free cash is likely to result in incremental returns to shareholders. ALB expected full-year 2026 operating cash flow conversion to be within its long-term target range of 60-70% at the average lithium market price of $20 per kilogram.

The company remains focused on maintaining its dividend payout. It has raised its quarterly dividend for the 30th straight year. ALB offers a dividend yield of 0.9% at the current stock price. Backed by healthy cash flows and sound financial health, the company's dividend is perceived to be safe and reliable.

Among its peers, Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) exited the first quarter with strong liquidity, with cash and cash equivalents being around $2.8 billion. Sociedad Quimica’s solid cash position supports its capital investment in growth projects and shareholder-friendly actions. Sociedad Quimica projects total capital expenditure of $2.7 billion for the 2025-2027 period, which includes the expansion of lithium carbonate and lithium hydroxide capacity in Chile.

ICL Group Ltd. (ICL - Free Report) ended the first quarter with cash and cash equivalents, and short-term investments and deposits of $581 million. Including unutilized revolving credit facility and securitization, ICL Group had cash resources of $1,491 million at the end of the quarter. ICL generated an operating cash flow of $195 million in the first quarter. It distributed roughly $224 million in dividends to its shareholders last year.

ALB’s Price Performance, Valuation & EstimatesAlbemarle has gained 38.3% in the past six months compared with the Zacks Chemical - Diversified industry’s rise of 25.6%.

Image Source: Zacks Investment Research

ALB is currently trading at a forward price-to-sales ratio of 3.37, above the industry. It carries a Value Score of D.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for ALB’s 2026 earnings implies a year-over-year rise of 1,555.7%. The EPS estimates for 2026 have been trending higher over the past 60 days.

Image Source: Zacks Investment Research

Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?

Let's take a look at what these Wall Street heavyweights have to say about Albemarle (ALB - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.

Albemarle currently has an average brokerage recommendation (ABR) of 1.88, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 25 brokerage firms. An ABR of 1.88 approximates between Strong Buy and Buy.

Of the 25 recommendations that derive the current ABR, 13 are Strong Buy and two are Buy. Strong Buy and Buy respectively account for 52% and 8% of all recommendations.

Brokerage Recommendation Trends for ALB

Check price target & stock forecast for Albemarle here>>>

While the ABR calls for buying Albemarle, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.

Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.

In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.

Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.

ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.

The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.

It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.

In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.

In addition, the different Zacks Rank grades are applied proportionately to all stocks for which brokerage analysts provide current-year earnings estimates. In other words, this tool always maintains a balance among its five ranks.

There is also a key difference between the ABR and Zacks Rank when it comes to freshness. When you look at the ABR, it may not be up-to-date. Nonetheless, since brokerage analysts constantly revise their earnings estimates to reflect changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in predicting future stock prices.

Should You Invest in ALB?Looking at the earnings estimate revisions for Albemarle, the Zacks Consensus Estimate for the current year has increased 49.6% over the past month to $12.39.

Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.

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

Therefore, the Buy-equivalent ABR for Albemarle may serve as a useful guide for investors.

It has been about a month since the last earnings report for Albemarle (ALB - Free Report) . Shares have lost about 16.5% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Albemarle due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Albemarle Corporation before we dive into how investors and analysts have reacted as of late.

Albemarle’s Q1 Earnings and Sales Beat on Higher Lithium Pricing and VolumesAlbemarle posted a first-quarter 2026 adjusted earnings of $2.95 per share. This compares favorably with the adjusted loss of 18 cents a year ago. The figure beat the Zacks Consensus Estimate of $1.24 by 137.9%, as higher lithium pricing and improved volumes lifted results.

On a reported basis, net income attributable to Albemarle rose to $319.1 million from $41.3 million, reflecting a much stronger operating backdrop.

Net sales rose 32.7% year over year to $1.43 billion and topped the consensus mark of $1.33 billion by 7.8%. Demand indicators stayed constructive, with global Energy Storage Systems production up 117% year over year in the quarter.

Segment HighlightsEnergy Storage net sales climbed 69.9% year over year to $891.2 million, driven by higher pricing and volumes. It surpassed the consensus estimate of $775 million. Management attributed the gain to a 51% increase in price and a 14% rise in volumes versus the prior-year quarter.

Specialties net sales increased 11.7% year over year to $358.4 million. It also beat the consensus estimate of $319 million. The improvement reflected a 7% lift in volumes and a 2% increase in pricing, helped by bromine specialties demand and pricing.

Corporate and all other net sales were $179.2 million versus $231.3 million a year ago.

The divestiture of Ketjen reduced companywide net sales by 4% year over year.

FinancialsCash and cash equivalents were $1.09 billion as of March 31, 2026, compared with $1.62 billion as of Dec. 31, 2025. Long-term debt was $1.81 billion at the quarter-end, down from $3.12 billion at the end of 2025 after the company paid down $1.3 billion of outstanding debt during the quarter. Net cash provided by operating activities was $346.2 million in the first quarter of 2026 versus $547.2 million in the year-ago period.

OutlookAlbemarle updated its 2026 outlook considerations, raising the Specialties view on stronger-than-expected bromine pricing. The company now expects Specialties net sales of $1.3-$1.5 billion and adjusted EBITDA of $225-$275 million for 2026.

For the total company, Albemarle continues to frame expectations around observed lithium market price scenarios. At an average lithium market price of about $10/kg LCE, it expects net sales of $4.1-$4.3 billion and adjusted EBITDA of $0.9-$1.0 billion. At about $20/kg LCE, net sales are projected at $5.7-$6.0 billion with adjusted EBITDA of $2.4-$2.6 billion. At about $30/kg LCE, net sales are forecast at $7.5-$7.8 billion and adjusted EBITDA at $4.2-$4.4 billion.

Albemarle expects depreciation and amortization expenses of $660-$680 million for 2026. Capital expenditures are expected to be $550-$600 million, while Interest and financing expenses are forecast to be $120-$140 million for the full year.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 61.57% due to these changes.

VGM ScoresCurrently, Albemarle has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Albemarle has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.

Performance of an Industry PlayerAlbemarle is part of the Zacks Chemical - Diversified industry. Over the past month, Cabot (CBT - Free Report) , a stock from the same industry, has gained 2.2%. The company reported its results for the quarter ended March 2026 more than a month ago.

Cabot reported revenues of $904 million in the last reported quarter, representing a year-over-year change of -3.4%. EPS of $1.61 for the same period compares with $1.90 a year ago.

Cabot is expected to post earnings of $1.66 per share for the current quarter, representing a year-over-year change of -12.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.8%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Cabot. Also, the stock has a VGM Score of A.

Albemarle (ALB - Free Report) has been beaten down lately with too much selling pressure. While the stock has lost 23.6% over the past four weeks, there is light at the end of the tunnel as it is now in oversold territory and Wall Street analysts expect the company to report better earnings than they predicted earlier.

We use Relative Strength Index (RSI), one of the most commonly used technical indicators, for spotting whether a stock is oversold. This is a momentum oscillator that measures the speed and change of price movements.

RSI oscillates between zero and 100. Usually, a stock is considered oversold when its RSI reading falls below 30.

Technically, every stock oscillates between being overbought and oversold irrespective of the quality of their fundamentals. And the beauty of RSI is that it helps you quickly and easily check if a stock's price is reaching a point of reversal.

So, by this measure, if a stock has gotten too far below its fair value just because of unwarranted selling pressure, investors may start looking for entry opportunities in the stock for benefiting from the inevitable rebound.

However, like every investing tool, RSI has its limitations, and should not be used alone for making an investment decision.

Here's Why ALB Could Experience a TurnaroundThe heavy selling of ALB shares appears to be in the process of exhausting itself, as indicated by its RSI reading of 29.81. So, the trend for the stock could reverse soon for reaching the old equilibrium of supply and demand.

This technical indicator is not the only factor that calls for a potential rebound for the stock. There is a fundamental indicator as well. A strong agreement among sell-side analysts covering ALB in raising earnings estimates for the current year has led to an increase in the consensus EPS estimate by 49.6% over the last 30 days. And an upward trend in earnings estimate revisions usually translates into price appreciation in the near term.

Moreover, ALB currently has a Zacks Rank #1 (Strong Buy), which means it is in the top 5% of more than 4,000 stocks that we rank based on trends in earnings estimate revisions and EPS surprises. This is a more conclusive indication of the stock's potential turnaround in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Key Takeaways Albemarle's shares surged 161.9% in a year, aided by Energy Storage strength and lithium prices.ALB is expanding lithium capacity and cutting costs, with EV demand driving long-term growth.ALB focuses on cost reductions and productivity, targeting $100-$150 million in 2026 cost savings. Albemarle Corporation (ALB - Free Report) is currently trading at a forward price-to-sales ratio of 3.05, well above the Zacks Chemical - Diversified industry’s 0.95. It is also trading at a premium to its peers, Sociedad Quimica y Minera de Chile S.A. (SQM - Free Report) and Rio Tinto Group (RIO - Free Report) . Albemarle currently has a Value Score of C. Sociedad Quimica and Rio Tinto have a Value Score of B and A, respectively.

ALB’s P/S F12M Vs. Industry, SQM and RIO Image Source: Zacks Investment Research

ALB’s shares have rallied 161.9% in the past year, thanks to the strength in its Energy Storage segment and an uptick in lithium prices. ALB has outperformed the industry’s rise of 4.4% and the S&P 500’s increase of 25.2%.

ALB’s One-year Price Performance Image Source: Zacks Investment Research

ALB stock broke below its 50-day simple moving average (SMA) on May 15, 2026.  It is currently trading above its 200-day SMA, suggesting a long-term uptrend. Following a golden crossover on Sept. 3, 2025, the 50-day SMA is reading higher than the 200-day SMA, indicating a bullish trend.

Albemarle Trades Below 50-Day SMA Image Source: Zacks Investment Research

Let’s take a look at ALB’s fundamentals to analyze the stock better.

Growing Lithium Demand, Productivity & Higher Prices Aid ALBAlbemarle is well-placed to gain from long-term growth in the battery-grade lithium market. The market for lithium batteries and energy storage remains strong, especially for electric vehicles (EVs), offering significant opportunities for the company to develop innovative products and expand capacity. Lithium demand is expected to grow on the back of significant global EV penetration.

ALB expects lithium demand to witness a compound annual growth rate (CAGR) of 10-20% from 2025 to 2030. Stationary storage is expected to be a significant driver for lithium demand along with EVs. Albemarle expects demand to grow roughly 15-40% this year. Demand indicators stayed positive in the first quarter of 2026, with global Energy Storage Systems production rising 117% year over year.

The company is strategically executing its projects aimed at boosting its global lithium conversion capacity. It remains focused on investing in high-return projects to drive productivity. Healthy customer demand, capacity expansion and plant productivity improvements are supporting its volumes. ALB saw higher sales volumes (up 14% year over year) in its Energy Storage unit in the first quarter on the strength of its integrated conversion facilities.

The Salar yield improvement project in Chile has achieved a 50% operating rate, and the ramp-up continues to deliver encouraging outcomes. ALB has started the environmental permitting process for a commercial direct lithium extraction project at Salar de Atacama. The ramp-up at the Meishan lithium conversion facility in China is also progressing ahead of schedule.

Albemarle is taking aggressive cost-saving and productivity actions. The company delivered roughly $450 million in cost and productivity improvements for full-year 2025, having surpassed its initial target of $300-$400 million. It expects additional cost and productivity improvements of $100-$150 million in 2026, with $40 million already delivered this year. ALB is taking actions to maintain its competitive position, including the initiation of a comprehensive review of cost and operating structure, optimization of the conversion network and reduction of capital expenditure.

Higher lithium prices, driven by strong demand from EVs and energy storage systems, along with supply disruptions due to recent supply reductions in China, are expected to aid ALB’s performance. Lithium prices have rebounded from the trough levels seen in 2025, supported by tightening supply and strong demand in China and globally. Albemarle’s first-quarter earnings and sales topped estimates as higher lithium prices and volumes lifted results.

ALB’s Strong Financial Health Supports Capital AllocationAlbemarle remains committed to driving shareholder value by leveraging healthy cash flows and strong liquidity. Its operating cash flow was around $1.3 billion in 2025, up roughly 86% from the prior-year period. At the end of the first quarter, ALB had liquidity of around $2.7 billion, including cash and cash equivalents of around $1.1 billion. ALB generated an operating cash flow of $346 million and free cash flow of $248 million in the quarter.

The company paid down $1.3 billion of outstanding debt in March 2026, reducing annual interest expense by roughly $60 million. This followed the successful divestments of the controlling stake in Ketjen and its 50% interest in the Eurecat joint venture, which together generated $670 million in pre-tax proceeds. 
The company remains focused on maintaining its dividend payout. It has raised its quarterly dividend for the 30th straight year.

ALB offers a dividend yield of 1.1% at the current stock price. Sociedad Quimica and Rio Tinto, have a dividend yield of 3.6% and 5.1%, respectively.  

ALB’s Earnings Estimates NorthboundThe Zacks Consensus Estimate for 2026 for ALB has been revised upward over the past 60 days. The consensus estimate for second-quarter 2026 has been going up over the same time frame.

 The Zacks Consensus Estimate for 2026 earnings is currently pegged at $12.39, suggesting a year-over-year rise of 1,668.4%. Earnings are expected to increase roughly 2,700% in the second quarter.

Image Source: Zacks Investment Research

How Should Investors Play ALB Stock?Albemarle is gaining from increased lithium volumes, supported by project ramp-ups, ongoing efforts to expand its global lithium conversion capacity and productivity improvement initiatives. The company remains well-positioned to benefit from the long-term expansion of the battery-grade lithium market, driven by the accelerating adoption of EVs worldwide. Favorable lithium pricing, backed by strong demand and constrained supply, further strengthens its outlook.

Robust growth prospects and rising earnings estimates are some other positives. Although ALB trades at a premium valuation, its strong fundamentals and earnings growth potential justify the higher multiple. We advise investors to bet on this Zacks Rank #1 (Strong Buy) stock now, as it has solid growth prospects.

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

Shares of Peloton Interactive Inc. NASDAQ: PTON have been attempting a comeback after hitting a 52-week low in mid-March.

Peloton Interactive Today

PTON

Peloton Interactive

$5.55 -0.10 (-1.77%)

As of 04:00 PM Eastern

52-Week Range$3.65▼

$9.20P/E Ratio138.78

Price Target$8.25

The stock has climbed more than 40% since then, as the market has seemingly begun to buy into the idea that the company’s long-running turnaround effort may finally be gaining traction.

Peloton’s latest earnings report added to that optimism, with shares rallying after the company reported fiscal third-quarter 2026 results on May 7. However, the stock has since given back most of those gains, leaving some investors wondering whether it’s actually time to get back on the bike.

Get Peloton Interactive alerts:

Peloton Delivers Encouraging EarningsPeloton’s Q3 results for fiscal year 2026 (FY2026) offered some encouraging signs for investors. The company reported revenue of roughly $631 million, up 1% year over year and topping Wall Street expectations by nearly $13 million. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $126 million, up 41% from the previous year, while net debt declined 70% year over year.

The company also returned to profitability, reporting net income of $26 million. Earnings per share of 6 cents improved from a loss of 12 cents in the year-ago quarter, though results came in a penny below expectations. Gross margin rose 90 basis points year over year to 52%, but came in below the company’s guidance due to promotions on its connected fitness equipment.

Commercial Business and Spotify Partnership Offer Growth OpportunitiesThe commercial business unit was a strong performer during the quarter, with a 14% year-over-year rise in revenue. The company is looking to build on that momentum with the release of new commercial products, including a bike and a treadmill, expected in the second quarter.

In the company’s earnings call, Chief Executive Peter Stern addressed the opportunity in the commercial space, saying, “We see tremendous upside in this category as we estimate that we have only a 3% share of the more than $10 billion and growing global commercial fitness equipment market segment.”

Peloton also announced a partnership with Spotify Technology NYSE: SPOT, which will bring more than 1,400 classes to Spotify Premium users worldwide.

Guidance Offers a Mixed PicturePeloton updated its 2026 outlook as well, increasing the midpoint of its 2026 revenue guidance to a range of $2.42 billion to $2.44 billion, and raising its free cash flow outlook to around $350 million, up $75 million from its prior minimum target.

On the flip side, the company lowered its total gross margin outlook by 50 basis points from earlier guidance to 52.5%. The adjusted EBITDA outlook remained in line with earlier guidance at $470 million to $480 million. The company said it expects ending paid connected fitness subscriptions to decline 8.6% year over year at the midpoint to a range of 2.55 million to 2.57 million.

Wall Street Remains Cautiously OptimisticInvestors initially cheered the report, with shares rising more than 16% at one point during the session before closing up nearly 9% for the day. In the sessions that followed, however, optimism appeared to fade as shares fell in three of the next five trading days, giving back nearly 11%. Currently, shares are trading roughly around where the stock closed before the earnings report.

Peloton Interactive, Inc. (PTON) Price Chart for Friday, June, 12, 2026

Following the earnings release, Goldman Sachs Group, Inc. increased its price target on Peloton to $8 from $7, while Weiss Ratings modestly upgraded the stock from Sell (D) to Sell (E+), suggesting some improvement in the company’s outlook even though the firm maintained a bearish stance on the stock.

The current consensus rating on the stock is a Hold, with eight Hold ratings, five Buy ratings, and one Sell rating.

On average, Wall Street still sees meaningful upside for the stock over the next 12 months. The average price target of $8.25 is roughly 55% above the current share price.

Based on price targets issued or updated over the last year, analyst targets range from $5 to $12, though most targets imply upside from current levels.

Short Interest Has Improved, But Skepticism RemainsShort interest in Peloton shares has declined over the last few months, suggesting at least some investors may be becoming less bearish on the stock.

Total shares sold short fell from around 67 million shares in mid-February to about 54.5 million shares at the end of April. The percentage of float sold short declined from 16% to 13% during the period.

Peloton is still working through several challenges, including declining subscriptions and margin pressure. However, the company’s latest earnings report suggested its turnaround efforts may be gaining traction, as growth in the commercial business, improved profitability, and stronger free cash flow guidance offered encouraging signs.

Still, the stock’s inability to hold onto its post-earnings gains suggests investors may be waiting for more consistent signs that the turnaround can translate into sustainable long-term growth.

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Peloton Interactive (PTON 1.77%) makes stationary exercise bikes, treadmills, and rowing machines, which it primarily sells to consumers for at-home use. Its stock went public in September 2019 priced at $29, but by the end of 2020, it had soared to a peak of $163. The COVID-19 pandemic sparked a surge in demand for the company's equipment, as lockdowns and social restrictions limited the use of gyms and other training facilities.

But when social conditions started to normalize in 2022, demand for Peloton's hardware plummeted. The company was faced with shrinking revenue and growing losses, which at one point threatened its very survival.

Peloton continues to struggle with weak sales, but the company's bottom line is now in much better shape thanks to a series of drastic cost cuts. With its stock trading 96% below its 2020 high, could this be a good time for investors to buy?

Image source: Peloton Interactive.

Peloton's business has undergone a significant transformation over the last few years. In fiscal 2021 (ended June 30, 2021), exercise equipment sales were the largest contributor to the company's $4 billion in total revenue. But through the first three quarters of fiscal 2026 (ended March 31), equipment sales represented less than one-third of its revenue base.

That's mostly because demand for Peloton's products collapsed after the peak of the pandemic, but it also reflects a shift toward digital subscription services. The company offers a connected fitness subscription for customers who own its exercise equipment, which gives them access to virtual classes and real-time performance tracking. The company also offers a separate subscription to its mobile app for customers who don't own its equipment, which provides them with workout plans and other basic features.

These subscriptions now account for the bulk of Peloton's revenue. On the plus side, they have high profit margins, but they aren't very sticky, so it's tough to keep members around. In fact, during the third quarter, Peloton's connected fitness subscriber base shrank 8% year over year to 2.66 million members, and its paid app subscriber base declined by 9% to 522,000 members.

In other words, not only is Peloton struggling to sell equipment, but it's also having trouble sustaining its membership base.

As a result, the company's total revenue has declined in every single year since fiscal 2021, and it's on track to decline again during fiscal 2026, according to management's guidance.

Fiscal Year

Revenue

Revenue Growth (Contraction)

Fiscal 2021

$4.02 billion

120%

Fiscal 2022

$3.58 billion

(11%)

Fiscal 2023

$2.8 billion

(22%)

Fiscal 2024

$2.7 billion

(4%)

Fiscal 2025

$2.49 billion

(7%)

Fiscal 2026 (forecast)

$2.43 billion

(2%)

Data source: Peloton Interactive.

On to the good news Peloton's management team appeared to be caught off guard when revenue started shrinking in fiscal 2022, because they had positioned the company's costs as if more growth was coming. Therefore, with less money coming in and more money going out, Peloton suffered a staggering net loss of $2.8 billion that year. If management didn't act fast to slash costs, the company probably wouldn't have survived.

Peloton is now spending less on everything from marketing to research and development. During the first nine months of fiscal 2026, the company's total operating expenses were just $862 million -- down sharply from $2.2 billion in the first nine months of fiscal 2022. As a result, it has eked out a small generally accepted accounting principles (GAAP) profit of $1.6 million in fiscal 2026 to date, so bankruptcy is no longer a real risk in the near term.

But there is a catch. By constantly cutting costs, Peloton is investing less in developing new products and acquiring new customers, making it harder to generate revenue growth. The company will eventually run out of ways to reduce expenses, so if it doesn't find a way to generate an organic increase in equipment and subscription sales, it will inevitably start making losses again.

Today's Change

(

-1.77

%) $

-0.10

Current Price

$

5.55

Is it time to buy Peloton stock? Peloton is trying to boost sales in a few different ways. It now sells equipment through third-party retailers like Amazon, Dick's Sporting Goods, and even Costco. And during the recent third quarter, it launched commercial versions of its flagship treadmill and exercise bike to sell to gyms and other training facilities. The shift into business-to-business sales will certainly expand the company's addressable market.

Peloton has $1.1 billion in cash on hand, so it has some headroom to experiment with different strategies, especially now that it's generating GAAP profits. But the company is also carrying $944 million in long-term debt, so it has a very limited window of opportunity to produce results.

Wall Street isn't convinced sales growth is on the horizon because analysts are forecasting flat revenue in fiscal 2027. Peloton has already had five years to prove it can turn its dwindling sales around without success, so it probably isn't wise for investors to bet on a different outcome right now.

A beaten-down stock isn't always a cheap stock, so I don't think Peloton's 96% decline represents a buying opportunity.

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Accomplished finance executive to further enable company’s wellness ambition and ensure disciplined growth

NEW YORK--(BUSINESS WIRE)--Peloton Interactive, Inc. (NASDAQ: PTON) today announced the appointment of Siddharth (“Sid”) Thacker as the company’s Chief Financial Officer, effective June 22, 2026. Thacker, an accomplished finance leader with a deep foundation as an institutional investor, will oversee Peloton’s global finance organization as well as corporate strategy. Under his leadership, Peloton will maintain its disciplined financial approach while pursuing broader market opportunities across the fitness and wellness landscape and delivering on its plans to return to sustainable, profitable revenue growth.

Thacker will join the company following a successful tenure as Chief Financial Officer at Rent the Runway. During his three years in the role, he led a significant financial and operational transformation that reset the company's balance sheet and drove a return to top-line revenue and subscriber growth. He accomplished these results with a customer-first mindset and through deep cross-functional partnership, engineering a shift to a more capital-efficient inventory model, optimizing marketing spend and scaling revenue streams including resale and advertising. Before stepping into his role as Chief Financial Officer, Thacker served the company as SVP Finance and Head of Data Science.

Prior to Rent the Runway, Thacker spent two decades as a public market investor, managing complex asset portfolios, and sourcing and leading investments across consumer, financial and tech-enabled services.

“This is a pivotal time for Peloton as we are now operating from a place of strategic optionality and playing offense. Sid brings the financial acumen, forward-looking strategy, and deep consumer focus we need to drive our next chapter,” said Peter Stern, CEO and President, Peloton. “He knows how to grow a business with multiple revenue streams, and he brings the financial discipline to make sure we do it right. Plus, his background as an investor gives us a unique edge as we look to accelerate innovation and grow our impact."

“Having spent decades looking at businesses as a finance leader and as an investor, I’m excited by Peloton’s many strategic assets, from its iconic brand and unmatched instructors to its deeply loyal global community,” said incoming CFO Sid Thacker. “I look forward to working with the entire Peloton team to build on the current momentum and discipline, sharpen execution, and usher in a new chapter of profitable growth.”

Thacker will report to CEO Peter Stern and will be based at the company’s New York headquarters. He succeeds interim Chief Financial Officer Saqib Baig, who will remain the company’s Chief Accounting Officer.

About Peloton

Peloton (NASDAQ: PTON) provides Members with world-class equipment, ground-breaking software, expert human instruction, and the world’s most supportive fitness community. Founded in 2012 and headquartered in New York City, Peloton has millions of Members across the US, UK, Canada, Germany, Australia, and Austria. For more information, visit www.onepeloton.com.

This press release may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including with respect to statements regarding changes to our leadership team, our future operating results and financial position, our business strategy and plans, our growth, and our objectives for future operations. Although we believe that the expectations reflected in the forward-looking statements are reasonable, these forward-looking statements are subject to a number of risks, uncertainties, and assumptions and other important factors that could cause actual results to differ materially from those stated, including the risks and uncertainties described in the sections titled “Risk Factors” in Part I, Item 1A and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in Part II, Item 7 in our Annual Report on Form 10-K for the fiscal year ended June 30, 2025, as such factors may be updated in our filings with the Securities and Exchange Commission. Our forward-looking statements speak only as of the date of this press release, and we undertake no obligation to update any of these forward-looking statements for any reason after the date of this press release or to conform these statements to actual results or revised expectations, except as required by law.

More News From Peloton Interactive, Inc.

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Peloton Interactive (PTON 1.77%), a connected fitness products and services provider, closed Tuesday at $5.77, up 1.05%. The stock moved following the announcement of Sid Thacker as its new Chief Financial Officer. Investors are watching how leadership changes support its ongoing profitability gains. Trading volume reached 65.8 million shares, about 364% above its three-month average of 14.2 million shares. Peloton Interactive IPO'd in 2019 and has fallen 78% since going public.

How the markets moved todayThe S&P 500 added 0.62% to finish Tuesday at 7,519, while the Nasdaq Composite gained 1.19% to close at 26,656. In the leisure space, industry peer Yeti closed at $46.05, up 1.36%, as investors compare branded consumer demand trends across discretionary names.

What this means for investorsWhile the market didn’t seem to have a major reaction to Sid Thacker joining Peloton as the company’s new CFO, it could prove to be a promising move for investors. Thacker was previously the CFO at Rent the Runway for the last three years and “reset the company's balance sheet and drove a return to top-line revenue and subscriber growth.”

This ties in perfectly with the cost restructuring and streamlining taking place at Peloton. The company recently reached break-even profitability and recorded its first-quarter revenue growth since early 2022. Thacker flipped RENT stock’s net income positive in a relatively short time there, so Peloton should be in good financial hands with this announcement. One note for interested investors: PTON’s share count has climbed 7% annually since 2023, however.

Josh Kohn-Lindquist has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Peloton Interactive. The Motley Fool recommends Yeti. The Motley Fool has a disclosure policy.

May 28, 2026 16:05 ET  | Source: Peloton Interactive

NEW YORK, May 28, 2026 (GLOBE NEWSWIRE) -- Peloton Interactive, Inc. (Nasdaq: PTON) today announced that Chief Executive Officer, Peter Stern, will participate in a fireside chat at the Baird Global Consumer, Technology & Services Conference on Tuesday, June 2, 2026 at 1:25 PM EDT.

The live webcast and replay can be accessed in the Events section of the company’s Investor Relations website: https://investor.onepeloton.com/news-and-events/events.

About Peloton Interactive, Inc.
Peloton (NASDAQ: PTON) provides Members with world-class equipment, ground-breaking software, expert human instruction, and the world’s most supportive fitness community. Founded in 2012 and headquartered in New York City, Peloton has millions of Members across the US, UK, Canada, Germany, Australia, and Austria. For more information, visit www.onepeloton.com.

Investor Contact
[email protected]

Press Contact
[email protected]

June 03, 2026 16:05 ET  | Source: Peloton Interactive

NEW YORK, June 03, 2026 (GLOBE NEWSWIRE) -- Peloton Interactive, Inc. (Nasdaq: PTON) today announced that Chief Executive Officer and President, Peter Stern, will participate in a fireside chat at the virtual Oppenheimer 26th Annual Consumer Growth and E-Commerce on Monday, June 8, 2026 at 1:30 PM EDT.

The live webcast and replay can be accessed in the Events section of the company’s Investor Relations website: https://investor.onepeloton.com/news-and-events/events.

About Peloton Interactive, Inc.
Peloton (NASDAQ: PTON) provides Members with world-class equipment, ground-breaking software, expert human instruction, and the world’s most supportive fitness community. Founded in 2012 and headquartered in New York City, Peloton has millions of Members across the US, UK, Canada, Germany, Australia, and Austria. For more information, visit www.onepeloton.com.

Investor Contact
[email protected]

Press Contact
[email protected]

May was an eventful month for exercise equipment and services specialist Peloton Interactive (PTON 1.77%). The company's stock, beaten down considerably on declines in its all-important subscriber count and a clutch of bottom-line losses, staged a comeback in May. It rose by more than 17% that month, on the back of a flip into profitability in its latest quarter, and other positive factors such as its inclusion on an important stock index.

Shaping up? The first major newsworthy event in May for Peloton was the release of its fiscal third-quarter 2026 figures. For the period, the company boosted revenue by 1% year over year to $631 million. Net income under generally accepted accounting principles (GAAP) came in at over $26 million ($0.06 per share), quite a dramatic change from the year-ago loss of nearly $48 million.

Image source: Getty Images.

That meant a mixed quarter for Peloton, as it handily beat the consensus analyst estimate of just under $619 million. It barely missed on the bottom line; meanwhile, as those pundits were collectively predicting GAAP net income of $0.07 per share.

The news behind the numbers was mixed, too. Yes, the company managed to improve its revenue (if modestly) and land convincingly in the black on the bottom line. It also slightly raised the low end of its full-year revenue guidance range to $2.42 billion from $2.4 billion (the high end remains $2.44 billion). However, its count of connected fitness subscriptions fell again, by nearly 8% to 2.66 million.

Several analysts tweaked their takes on Peloton after earnings were released, and they were clearly more impressed by the positives than discouraged by the negatives. Influential investment bank Goldman Sachs added $1 to its price target on the stock, to $8, and maintained its buy recommendation. Later in the month, big bank Citigroup made a similar move, pushing its price target to $6 per share from $5. It kept its neutral rating intact.

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Indexed On May 21, Peloton was tapped to become a component stock of the S&P SmallCap 600 index, replacing Enviri, effective May 27. That helped to give Peloton a late-in-the-month lift, not least because getting included in such a lineup makes a stock a good target for the many index funds that trawl the market looking for portfolio candidates.

Aping its more successful users, Peloton as a company has slimmed down and become a leaner operation, which is one reason its bottom line looked so much better in the third quarter. If I were an investor, though, I'd be concerned about the continued erosion of subscriptions, since that indicates not every aspect of its business is in prime shape. Given that, I wouldn't be buying this stock now.

Citigroup 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 Goldman Sachs Group and Peloton Interactive. The Motley Fool has a disclosure policy.

Key Takeaways PDD posted Q1 non-GAAP EPS of $1.38 per ADS, down 11.5% Y/Y and below estimates.PDD Holdings revenue rose 17.5% to $15.4B, driven by transaction services up 20% in RMB terms.PDD ended March with RMB 436.1B in cash and investments, backing longer-cycle ecosystem initiatives. PDD Holdings Inc. Sponsored ADR (PDD - Free Report) posted first-quarter 2026 non-GAAP earnings of $1.38 per ADS (American Depositary Share), which missed the Zacks Consensus Estimate of $2.23 by 38.12%. The figure decreased 11.5% year over year. In domestic currency (Renminbi), the company reported earnings of RMB 9.51, down 16.7% year over year.

Quarterly revenues totaled $15.4 billion, up 16.8% year over year, but below the consensus mark of $15.90 billion by 3.4%. In domestic currency, revenues increased to RMB 106.2 billion, reflecting a 11% year-over-year rise. The top line was supported by continued momentum in transaction services, which increased 20% in Renminbi terms.

Revenues by SegmentsOnline marketing services and other revenues, representing 47% of total revenues, rose to RMB 49.9 billion ($7.2 billion), up 2.5% from the year-ago quarter.

Transaction services revenues, which accounted for 53% of total revenues, were RMB 56.3 billion ($8.2 billion), reflecting a 20% increase from the year-ago quarter.

Management tied its longer-term growth agenda to deeper supply chain work, with a focus on improving product standards, logistics capabilities and platform governance. The company emphasized that it is prioritizing ecosystem and supply chain investments over optimizing near-term financial outcomes.

PDD’s Q1 Operating DetailsIn the first quarter, sales and marketing expenses were RMB 33.8 billion ($4.9 billion), up from RMB 33.4 billion in the year-ago quarter.

General and administrative expenses were RMB 1.6 billion ($229 million), down from RMB 1.7 billion year over year.

    Research and development expenses were RMB 4.4 billion ($640 million), up from RMB 3.6 billion on a year-over-year basis. The increase was driven by a sustained investment cycle tied to its strategy.

Non-GAAP operating profit was RMB 21.1 billion ($3.8 billion), up 15.3% year over year from RMB 18.3 billion. The margin expanded to 19.9% from 19.1% in the prior year.

PDD’s Balance Sheet & Cash FlowAs of March 31, 2026, cash, cash equivalents and short-term investments were RMB 436.1 billion ($63.2 billion), up from RMB 422.3 billion as of Dec 31, 2025. The balance sheet position continues to provide flexibility as the company leans into longer-cycle initiatives.

Other non-current assets were RMB 95.2 billion ($13.8 billion) as of March 31, 2026, compared with RMB 104.7 billion as of Dec. 31, 2025.

Net cash generated from operating activities was RMB 16.4 billion ($2.4 billion), up from RMB 15.5 billion in the prior quarter, supporting liquidity even as the company described ongoing ecosystem investments

PDD’s Zacks Rank & Stocks to ConsiderCurrently, PDD carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the broader Zacks Retail-Wholesale sector are Aramark (ARMK - Free Report) , Casey's General Stores (CASY - Free Report) and Ross Stores (ROST - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of ARMK have gained 44.7% year to date. It is set to report third-quarter fiscal 2026 results on Aug. 4.

Shares of CASY have gained 41.9% year to date. It is set to report fourth-quarter fiscal 2026 results in June. 9.

Shares of ROST have gained 29.6% year to date. It is scheduled to report second-quarter fiscal 2026 results on Aug. 20.

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LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay & Murray LLP, a leading national shareholder rights law firm, continues its investigation on behalf of PDD Holdings Inc. (“PDD” or the “Company”) (NASDAQ: PDD) investors concerning the Company’s possible violations of the federal securities laws.

IF YOU ARE AN INVESTOR WHO LOST MONEY ON PDD HOLDINGS INC. (PDD), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS.

What Happened?

On January 19, 2026, Bloomberg reported that China had broadened its probe into PDD, dispatching a special investigation team of over 100 regulators from various agencies, including the State Administration for Market Regulation (“SAMR”), alleging misconduct ranging from fraudulent deliveries to taxation issues. The investigation was partially triggered by physical violence that had broken out between PDD employees and SAMR inspectors in the previous month.

On this news, PDD’s stock price fell during intraday trading on January 20, 2026, thereby injuring investors.

On May 28, 2026, The European Union handed PDD's Temu unit a 200 million euro ($232.5 million) fine, saying “the company failed to diligently identify, analyse, and assess the systemic risks of illegal products being offered on its platform and the resulting harm to consumers in the European Union.” The commission stated it found a “high percentage” of unsafe baby products and a “very high percentage” of dangerous chargers for sale on the platform, as well as unsafe clothes and jewelry. The €200m fine is the second and highest-ever imposed under the EU’s Digital Services Act.

On this news, shares fell as much as 5% during intraday trading on May 28, 2026, thereby injuring investors further.

Contact Us To Participate or Learn More:

If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.

Charles Linehan, Esq.,
Glancy Prongay & Murray LLP,
1925 Century Park East, Suite 2100,
Los Angeles, California 90067
Email: [email protected]
Telephone: 310-201-9150 (Toll-Free: 888-773-9224)
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.

Whistleblower Notice

Persons with non-public information regarding PDD should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email [email protected].

About Glancy Prongay & Murray LLP

Glancy Prongay & Murray LLP (“GPM”) is a premier law firm representing investors and consumers in securities litigation and other complex class action litigation. GPM has been consistently ranked in the Top 50 Securities Class Action Settlements by ISS Securities Class Action Services. In 2018, GPM was ranked a top five law firm in number of securities class action settlements, and a top six law firm for total dollar size of settlements.

With four offices across the country, GPM’s nearly 40 attorneys have won groundbreaking rulings and recovered billions of dollars for investors and consumers in securities, antitrust, consumer, and employment class actions. GPM’s lawyers have handled cases covering a wide spectrum of corporate misconduct and relating to nearly all industries and sectors. GPM’s past successes have been widely covered by leading news and industry publications such as The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron’s, Investor’s Business Daily, Forbes, and Money.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

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PDD Holdings Inc. Sponsored ADR (PDD - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Over the past month, shares of this company have returned -15.3%, compared to the Zacks S&P 500 composite's +6.3% change. During this period, the Zacks Internet - Commerce industry, which PDD Holdings Inc. Sponsored ADR falls in, has gained 0.7%. 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.

Earnings Estimate RevisionsHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

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.

PDD Holdings Inc. Sponsored ADR is expected to post earnings of $3.01 per share for the current quarter, representing a year-over-year change of -2.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.

For the current fiscal year, the consensus earnings estimate of $11.74 points to a change of +13.3% from the prior year. Over the last 30 days, this estimate has remained unchanged.

For the next fiscal year, the consensus earnings estimate of $13.32 indicates a change of +13.5% from what PDD Holdings Inc. Sponsored ADR is expected to report a year ago. Over the past month, the estimate has remained unchanged.

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 PDD Holdings Inc. Sponsored ADR.

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.

In the case of PDD Holdings Inc. Sponsored ADR, the consensus sales estimate of $17.13 billion for the current quarter points to a year-over-year change of +18%. The $71 billion and $79.17 billion estimates for the current and next fiscal years indicate changes of +17.1% and +11.5%, respectively.

Last Reported Results and Surprise HistoryPDD Holdings Inc. Sponsored ADR reported revenues of $15.4 billion in the last reported quarter, representing a year-over-year change of +16.8%. EPS of $1.38 for the same period compares with $1.56 a year ago.

Compared to the Zacks Consensus Estimate of $15.94 billion, the reported revenues represent a surprise of -3.4%. The EPS surprise was -38.12%.

Over the last four quarters, PDD Holdings Inc. Sponsored ADR surpassed consensus EPS estimates two times. The company topped consensus revenue estimates just once 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.

PDD Holdings Inc. Sponsored ADR is graded A on this front, indicating that it is trading at a discount 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 PDD Holdings Inc. Sponsored ADR. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Investing in growing businesses can be an excellent way to turn a $1,000 investment into much more in the long term. Now, however, may be a tricky time to invest given that valuations for many stocks are through the roof. Finding a good deal out there can be challenging.

However, three stocks that I think are among the best all-around buys right now are Microsoft (MSFT +0.11%), American Express (AXP +2.18%), and PDD Holdings (PDD +0.32%). They can be great stocks to invest $1,000 in today. Although they've been struggling this year, here's why I'm confident they can and will bounce back.

Image source: Getty Images.

Microsoft Microsoft has been a solid blue chip stock to own for decades, which makes what's happened with it this year all the more puzzling. It's been declining along with other software stocks and is down around 10% this year as investors grow overly concerned about artificial intelligence (AI) and its potential to disrupt businesses.

However, I think the concerns are overblown, especially as they pertain to Microsoft. AI may help businesses do more with less and improve efficiency, but there are also trust and reliability issues to consider as well. Microsoft's software is trusted by companies and professionals all over the world, and I just don't see that changing anytime soon. In fact, with AI, it's been enhancing its product offerings. Rather than hurt its business, AI is likely to improve it.

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The market is making a mistake when it comes to Microsoft's stock, and that's created an opportunity for investors to buy at a more reasonable valuation. At a forward earnings multiple of 24, Microsoft's value is appealing given its growth prospects and the stability it offers. For long-term investors, this is a stock that you'll definitely want to consider loading up on right now.

American Express Credit card company American Express is another solid stock to buy today. It has declined by about 16% this year. This may be due to a combination of fears about possible caps on the interest rates that credit cards charge and cryptocurrency reform, but the overall business itself is doing fine. During the first three months of the year, the company's earnings rose by 15%, and card member spending increased by 10%.

I don't like the idea of investing based on what might happen with legislation, simply because it can take a while to take effect, and bills can change drastically along the way. The reality is that credit cards are here to stay. Consumers need and rely on them, and the companies that issue them need to charge high rates to compensate for the risk they're taking on. That's why I wouldn't worry too much about these issues, especially when looking at the long term.

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American Express stock looks like an excellent buy today, trading at a forward P/E of only 18, which is less than the S&P 500 average of 22.

PDD Holdings Rounding out this list is the stock that may be the most underrated these days, and that's PDD Holdings, the company that owns Temu. It's down more than 20% this year as tariffs, trade issues, and other risks related to China weigh on its valuation.

Temu is still among the most visited e-commerce websites in the world. Demand for cheap products is going to remain high, regardless of economic conditions; consumers want deals. The current administration may be taking a tough stance on China and imported products, but that could very well change under the next one. This is where buying shares of PDD Holdings now, while its valuation is low (it trades at a forward P/E of only eight), could be advantageous in the long run.

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The company may be encountering challenges in the near term, but its revenue still rose by 11% during the first three months of the year. PDD is another undervalued stock that could generate significant returns for investors in the future.

LOS ANGELES--(BUSINESS WIRE)--The Law Offices of Frank R. Cruz continues its investigation of PDD Holdings Inc. (“PDD” or the “Company”) (NASDAQ: PDD) on behalf of investors concerning the Company’s possible violations of federal securities laws.

IF YOU ARE AN INVESTOR WHO LOST MONEY ON PDD HOLDINGS INC. (PDD), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING A CLAIM TO RECOVER YOUR LOSS.

What Is The Investigation About?

On January 19, 2026, Bloomberg reported that China had broadened its probe into PDD, dispatching a special investigation team of over 100 regulators from various agencies, including the State Administration for Market Regulation (“SAMR”), alleging misconduct ranging from fraudulent deliveries to taxation issues. The investigation was partially triggered by physical violence that had broken out between PDD employees and SAMR inspectors in the previous month.

On this news, PDD’s stock price fell $2.30, or 2.2%, to close at $104.46 per share on January 20, 2026, thereby injuring investors.

On May 28, 2026, The European Union handed PDD's Temu unit a 200 million euro ($232.5 million) fine, saying “the company failed to diligently identify, analyse, and assess the systemic risks of illegal products being offered on its platform and the resulting harm to consumers in the European Union.” The commission stated it found a “high percentage” of unsafe baby products and a “very high percentage” of dangerous chargers for sale on the platform, as well as unsafe clothes and jewelry. The €200m fine is the second and highest-ever imposed under the EU’s Digital Services Act.

On this news, PDD’s stock price fell $3.58, or 4.1%, to close at $83.03 per share on May 28, 2026.

Then, on June 11, 2026, Bloomberg News reported that the Beijing branch of State Administration for Market Regulation summoned PDD representatives "over what officials said was false advertising during the annual '618' midyear online shopping festival."

On this news, PDD’s stock price fell as much as 3.6% during intraday trading on June 11, 2026, thereby injuring investors further.

Contact Us To Participate or Learn More:

If you purchased PDD securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:

The Law Offices of Frank R. Cruz,
2121 Avenue of the Stars, Suite 800,
Century City, California 90067
Call us at: 310-914-5007
Email us at: [email protected]
Visit our website at: www.frankcruzlaw.com.
Follow us for updates on Twitter at twitter.com/FRC_LAW.

If you inquire by email, please include your mailing address, telephone number, and number of shares purchased.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

More News From The Law Offices of Frank R. Cruz

PDD Holdings Inc. Sponsored ADR (PDD - Free Report) has been one of the most searched-for stocks on Zacks.com lately. So, you might want to look at some of the facts that could shape the stock's performance in the near term.

Over the past month, shares of this company have returned -14.9%, compared to the Zacks S&P 500 composite's -0.2% change. During this period, the Zacks Internet - Commerce industry, which PDD Holdings Inc. Sponsored ADR falls in, has lost 9.9%. 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 EstimatesHere at Zacks, we prioritize appraising the change in the projection of a company's future earnings over anything else. That's because we believe the present value of its future stream of earnings is what determines the fair value for its stock.

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.

For the current quarter, PDD Holdings Inc. Sponsored ADR is expected to post earnings of $2.86 per share, indicating a change of -7.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -4.6% over the last 30 days.

For the current fiscal year, the consensus earnings estimate of $10.61 points to a change of +2.4% from the prior year. Over the last 30 days, this estimate has changed -9.7%.

For the next fiscal year, the consensus earnings estimate of $12.32 indicates a change of +16.1% from what PDD Holdings Inc. Sponsored ADR is expected to report a year ago. Over the past month, the estimate has changed -7.5%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, PDD Holdings Inc. Sponsored ADR is rated Zacks Rank #3 (Hold).

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 PDD Holdings Inc. Sponsored ADR, the consensus sales estimate for the current quarter of $17.13 billion indicates a year-over-year change of +18%. For the current and next fiscal years, $70.73 billion and $78.88 billion estimates indicate +16.7% and +11.5% changes, respectively.

Last Reported Results and Surprise HistoryPDD Holdings Inc. Sponsored ADR reported revenues of $15.4 billion in the last reported quarter, representing a year-over-year change of +16.8%. EPS of $1.38 for the same period compares with $1.56 a year ago.

Compared to the Zacks Consensus Estimate of $15.94 billion, the reported revenues represent a surprise of -3.4%. The EPS surprise was -38.12%.

Over the last four quarters, PDD Holdings Inc. Sponsored ADR surpassed consensus EPS estimates two times. The company topped consensus revenue estimates just once 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.

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.

PDD Holdings Inc. Sponsored ADR is graded A on this front, indicating that it is trading at a discount 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 PDD Holdings Inc. Sponsored ADR. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith continues its investigation on behalf of PDD Holdings Inc. (“PDD” or the “Company”) (NASDAQ: PDD) investors concerning the Company’s possible violations of federal securities laws.

IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN PDD HOLDINGS INC. (PDD), CONTACT THE LAW OFFICES OF HOWARD G. SMITH ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS.

Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at [email protected], by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com.

What Happened?

On January 19, 2026, Bloomberg reported that China had broadened its probe into PDD, dispatching a special investigation team of over 100 regulators from various agencies, including the State Administration for Market Regulation (“SAMR”), alleging misconduct ranging from fraudulent deliveries to taxation issues. The investigation was partially triggered by physical violence that had broken out between PDD employees and SAMR inspectors in the previous month.

On this news, PDD’s stock price fell $2.30, or 2.2%, to close at $104.46 per share on January 20, 2026, thereby injuring investors.

On May 28, 2026, The European Union handed PDD's Temu unit a 200 million euro ($232.5 million) fine, saying “the company failed to diligently identify, analyse, and assess the systemic risks of illegal products being offered on its platform and the resulting harm to consumers in the European Union.” The commission stated it found a “high percentage” of unsafe baby products and a “very high percentage” of dangerous chargers for sale on the platform, as well as unsafe clothes and jewelry. The €200m fine is the second and highest-ever imposed under the EU’s Digital Services Act.

On this news, PDD’s stock price fell $3.58, or 4.1%, to close at $83.03 per share on May 28, 2026.

Then, on June 11, 2026, Bloomberg News reported that the Beijing branch of State Administration for Market Regulation summoned PDD representatives "over what officials said was false advertising during the annual '618' midyear online shopping festival."

On this news, PDD’s stock price fell as much as 3.6% during intraday trading on June 11, 2026, thereby injuring investors further.

Contact Us To Participate or Learn More:

If you purchased PDD securities, have information or would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:

Law Offices of Howard G. Smith,
3070 Bristol Pike, Suite 112,
Bensalem, Pennsylvania 19020,
Telephone: (215) 638-4847
Email: [email protected],
Visit our website at: www.howardsmithlaw.com.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

More News From Law Offices of Howard G. Smith

Glancy Prongay & Murray LLP, a leading national shareholder rights law firm, continues its investigation on behalf of PDD Holdings Inc. (“PDD” or the “Company”) (NASDAQ: PDD) investors concerning the Company’s possible violations of the federal securities laws.

IF YOU ARE AN INVESTOR WHO LOST MONEY ON PDD HOLDINGS INC. (PDD), CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS.

What Happened?

On January 19, 2026, Bloomberg reported that China had broadened its probe into PDD, dispatching a special investigation team of over 100 regulators from various agencies, including the State Administration for Market Regulation (“SAMR”), alleging misconduct ranging from fraudulent deliveries to taxation issues. The investigation was partially triggered by physical violence that had broken out between PDD employees and SAMR inspectors in the previous month.

On this news, PDD’s stock price fell $2.30, or 2.2%, to close at $104.46 per share on January 20, 2026, thereby injuring investors.

On May 28, 2026, The European Union handed PDD's Temu unit a 200 million euro ($232.5 million) fine, saying “the company failed to diligently identify, analyse, and assess the systemic risks of illegal products being offered on its platform and the resulting harm to consumers in the European Union.” The commission stated it found a “high percentage” of unsafe baby products and a “very high percentage” of dangerous chargers for sale on the platform, as well as unsafe clothes and jewelry. The €200m fine is the second and highest-ever imposed under the EU’s Digital Services Act.

On this news, PDD’s stock price fell $3.58, or 4.1%, to close at $83.03 per share on May 28, 2026.

Then, on June 11, 2026, Bloomberg News reported that the Beijing branch of State Administration for Market Regulation summoned PDD representatives "over what officials said was false advertising during the annual '618' midyear online shopping festival."

On this news, PDD’s stock price fell as much as 3.6% during intraday trading on June 11, 2026, thereby injuring investors further.

Contact Us To Participate or Learn More:

If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us.

Charles Linehan, Esq.,
Glancy Prongay & Murray LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: [email protected]
Telephone: 310-201-9150 (Toll-Free: 888-773-9224)
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.

Whistleblower Notice

Persons with non-public information regarding PDD should consider their options to aid the investigation or take advantage of the SEC Whistleblower Program. Under the program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Charles H. Linehan at 310-201-9150 or 888-773-9224 or email [email protected].

About Glancy Prongay & Murray LLP

Glancy Prongay & Murray LLP (“GPM”) is a premier law firm representing investors and consumers in securities litigation and other complex class action litigation. GPM has been consistently ranked in the Top 50 Securities Class Action Settlements by ISS Securities Class Action Services. In 2018, GPM was ranked a top five law firm in number of securities class action settlements, and a top six law firm for total dollar size of settlements.

With four offices across the country, GPM’s nearly 40 attorneys have won groundbreaking rulings and recovered billions of dollars for investors and consumers in securities, antitrust, consumer, and employment class actions. GPM’s lawyers have handled cases covering a wide spectrum of corporate misconduct and relating to nearly all industries and sectors. GPM’s past successes have been widely covered by leading news and industry publications such as The Wall Street Journal, The Financial Times, Bloomberg Businessweek, Reuters, the Associated Press, Barron’s, Investor’s Business Daily, Forbes, and Money.

This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260612215290/en/

Fiverr International (FVRR - Free Report) came out with quarterly earnings of $0.62 per share, missing the Zacks Consensus Estimate of $0.63 per share. This compares to earnings of $0.64 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -1.59%. A quarter ago, it was expected that this online marketplace for freelance services would post earnings of $0.76 per share when it actually produced earnings of $0.86, delivering a surprise of +13.16%.

Over the last four quarters, the company has surpassed consensus EPS estimates two times.

Fiverr, which belongs to the Zacks Internet - Commerce industry, posted revenues of $105.49 million for the quarter ended March 2026, surpassing the Zacks Consensus Estimate by 1.09%. This compares to year-ago revenues of $107.18 million. The company has topped consensus revenue estimates two times over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Fiverr shares have lost about 47.6% since the beginning of the year versus the S&P 500's gain of 4.3%.

What's Next for Fiverr?While Fiverr has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Fiverr was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.56 on $101.63 million in revenues for the coming quarter and $2.22 on $403.62 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Commerce is currently in the bottom 28% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Another stock from the same industry, Commerce.com (CMRC - Free Report) , has yet to report results for the quarter ended March 2026. The results are expected to be released on May 7.

This company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of +57.1%. The consensus EPS estimate for the quarter has been revised 50% lower over the last 30 days to the current level.

Commerce.com's revenues are expected to be $83.06 million, up 0.8% from the year-ago quarter.

Fiverr International Ltd. (FVRR) Q1 2026 Earnings Call Transcript

Every so often, a single day changes the course of technological progress. For example…

October 1, 1908: Ford Motor Co. (F) introduced the Model T. October 26, 1958: Pan Am’s Boeing 707 completed the first scheduled transatlantic jet service from New York to Paris. January 9, 2007: Steve Jobs walked onstage and introduced the iPhone. November 30, 2022: OpenAI released ChatGPT. These were not quiet, obscure breakthroughs buried in a lab.

They arrived with fanfare.

Pan Am’s flight featured a full marching band and global press coverage. The iPhone announcement drew roughly 7,500 people in person, and liveblogs attracted at least another 400,000. ChatGPT was possibly the flashiest: It reached 1 million users in five days, then an estimated 100 million monthly active users two months later.

And yet, Wall Street has a remarkable habit of acting surprised when a new technological age knocks on the door. Railroad stocks kept rising for at least eight years after the world entered the jet age. (They would eventually collapse in the late 1960s.) Nokia and BlackBerry Ltd.’s (BB) shares went up for months after the iPhone was announced. And software stocks kept inflating until the middle of last year, despite clear signs that AI was getting proficient at coding.

Investors could see the future onstage, but many kept valuing the past as if nothing had changed.

That matters because May 19 could mark another one of those before-and-after moments.

On that day, one of the world’s most prominent artificial intelligence companies will launch what InvestorPlace senior analyst Eric Fry and I believe will be a game-changing suite of AI products. They will be powered by a new form of the technology Eric is calling “A-AI.”

If history is any guide, the market’s first reaction will be dangerously incomplete.

Fortunately, many industry insiders are already giving clues about which firms will be in the “splash zone” of this disruption. They’re selling shares in the companies they run, and they’re doing it faster than you might expect.

In this update, I’d like to highlight three firms with unusual insider sales as a clear sign to get out before May 19.

Stock to Sell No. 1: The Vanishing Freelancer Model The first candidate to sell is a global online marketplace specializing in freelance work:

Fiverr International Ltd. (FVRR).

Shares rose almost 20% last week after management announced surprisingly strong results. Revenue of $105 million and earnings per share of $0.62 beat forecasts by 1% each, reassuring markets that the freelancer marketplace was still alive.

However, a significant share sale by its CEO should give investors a reason to pause.

On April 30, an SEC filing revealed that Fiverr CEO Micha Kaufman had significantly accelerated the pace of his preauthorized stock sales from around 20,000 per year to 66,000. That stands in sharp contrast with his upbeat comments in prepared earnings call remarks, where he claimed that “the fundamental [AI-powered] dynamics of this market are moving in our direction.”

I suspect that artificial intelligence is quickly replacing the type of work commonly sold on Fiverr. Popular Fiverr services include website development, book publishing, and logo design – all things that ChatGPT and its rivals can now do. In fact, Anthropic’s Claude Cowork can build a $10,000 animated website almost instantly.

That spells trouble for the Israeli firm, which hasn’t turned an operating profit in the seven years since going public in 2019. The freelancer marketplace is facing competition from AI chatbots, and growth is stalling out. Why pay a freelancer on Fiverr $100 for a set of logos when you can ask ChatGPT to design thousands of them for no apparent cost?

Fiverr’s overhead costs are also high. Advertising costs eat up $0.31 for every $1 generated, leaving little left over for anything else. Though total disaster hasn’t struck Fiverr’s financials quite yet, insiders don’t seem keen on sticking around to see what happens next.

Stock to Sell No. 2: The SaaS Company That the “SaaSpocalyse” Forgot It’s been a generally awful year for software-as-a-service (SaaS) companies – the firms that charge monthly fees for access to cloud-based programs. It’s been so bad that one SaaS index, the iShares Expanded Tech-Software Sector ETF (IGV), has fallen 28% since last September on AI disruption fears. Individual names like Monday.com Inc. (MNDY) and Atlassian Corp. (TEAM) have fared even worse, shedding over 75% of their value since their 2025 peaks.

Except one:

EverCommerce Inc (EVCM).

Shares of the $2 billion firm have essentially traded sideways for the past year, sidestepping the massive “SaaSpocalypse” that has consumed its peers. Shares trade for 18X cash flows (within striking distance of its full-history average), and a casual observer might sense nothing wrong with this company that creates software to help small businesses manage operations, billings, payments and marketing.

That could quickly change.

You see, artificial intelligence is upending the SaaS market not because it offers the end-to-end services that EverCommerce or Salesforce Inc. (CRM) provides. That’s a complex task that requires a small army of sales and onboarding staff in addition to a working product.

Instead, AI labs are providing software tools that allow competitors to spring up almost overnight and charge a fraction of what incumbents do. Vibe-coded startups don’t need many engineers, and one AI-powered competitor to Salesforce named “Twenty” reportedly has only 34 employees. They charge between $9 and $19 per month per seat… a tenth of what Salesforce typically asks for.

EverCommerce’s management isn’t waiting around either. Since mid-2025, the company’s top executives (CEO, CFO, CLO) have been selling available shares on the open market. Almost $1 million in stock has been sold across eight transactions.

In addition, CEO Eric Remer has sold stock through 10b5-1 plans faster than he’s been awarded them – a typically bearish sign. In the past month alone, he has sold $674,000 worth of stock this way… more than he earns from a full year of salary.

So, don’t be complacent with SaaS stocks that have yet to fall; if insiders are getting out, it’s often a sign that you should, too.

Stock to Sell No. 3: Can AI Create TV Shows? Executives at Netflix Inc. (NFLX) have a long history of selling into strength. Co-CEO Gregory Peters made one large sale in July 2020 after the work-from-home craze almost doubled the value of Netflix’s shares. He then made seven more between February 2024 and November 2025 after the stock recovered from a brutal 2022 selloff.

Gregory Peters’ Netflix (NFLX) sales

Source: Tipranks

That’s why a recent round of selling last February should raise eyebrows. These sales were made after shares fell over 40% from their peak, and mark the first time Peters has sold shares after such a deep selloff. Three other executives with similar selling histories did the same.

In fairness, I think these sales are premature. Analysts expect the video streaming firm to hit 14% sales growth this year, powered by rising subscriber numbers and higher monthly fees. Besides, we are entering the most expensive midterm election year in history, which should send Netflix’s advertising revenues to new records.

However, the truth is that artificial intelligence is coming for video creation as well. In fact, I believe we might be just one to three years away from tools that can create entire TV shows from a single prompt.

There are already plenty of signs this can happen. Last February, ByteDance released Seedance 2.0, an astonishingly powerful model that created realistic clips of Hollywood actors. Fearful media firms immediately sent the Chinese firm cease-and-desist orders. (The Netflix insider sales happened right in this period.)

Soon after, New York-based startup Runway began getting traction online after launching real-time intelligent avatars that ranged from the ultra-realistic to the uncanny.

Choose your next company avatar

Source: Runway

“A-AI” will turbocharge this process, allowing AI to not only create plots, scripts, characters, keyframes, and full-length videos, but also give the technology the tools to review its work and iterate until a near-perfect output is created. After all, AI models are increasingly able to evaluate and iterate on their outputs. There’s no reason it can’t do the same with creative work.

That’s why Netflix should start landing on investors’ long-term “Sell” lists. Though shares will likely rise for the next couple of months as election season gets underway (and first-quarter earnings last week topped estimates), insiders selling suggests they might be sensing longer-term trouble ahead from this emerging competitive threat.

The “A-AI” Revolution Most investors have a bad habit of looking only in the rearview mirror. Value investors take long-term earnings and draw a straight line through them. If a company averaged $1 per share in profits, then this year’s $0.20 disappointment must be temporary, right?

Meanwhile, growth investors and algorithmic traders often take rising revenue numbers or stock prices and draw a line through that.

Both strategies work well in ordinary times. Most value stocks recover, given enough time and capital. And most growth stocks keep going up. Buying both the top-performing S&P 500 companies and cheapest ones routinely yields excellent results.

But technological disruptions tend to cut these trends short. The rise of the internet, for instance, not only destroyed many traditional “value” businesses like brick-and-mortar retailing. It also hurt “growth” businesses like AOL by creating nimbler competitors.

Smartphone apps like Uber Technologies Inc. (UBER) hurt both the traditional taxi medallion market and the upstart car-sharing business like Zipcar.

We’re now facing a new era that threatens the same fate for companies in its path. Hundreds of firms will see their stock prices fall; the recent SaaSpocalypse is only the start.

To make sure you’re on the right side of that split, Eric released a special presentation he calls the Agentic Reckoning. He goes into greater depth of what “A-AI” is… and the stocks that should benefit from this new technological age. 

Plus, he reveals his No. 1 stock to buy before this technology takes off.

Click here to watch Eric’s special presentation now.

Until next week,

Thomas Yeung, CFA

Market Analyst, InvestorPlace

Thomas Yeung is a market analyst and portfolio manager of the Omnia Portfolio, the highest-tier subscription at InvestorPlace. He is the former editor of Tom Yeung’s Profit & Protection, a free e-letter about investing to profit in good times and protecting gains during the bad.

SAN DIEGO, May 05, 2026 (GLOBE NEWSWIRE) -- Johnson Fistel, PLLP is investigating potential claims on behalf of investors of Fiverr International Ltd. (NYSE: FVRR). The investigation focuses on Fiverr’s executive officers and whether investor losses may be recovered under federal securities laws.

What if I purchased Fiverr securities?
If you purchased Fiverr securities and suffered losses on your investment, join our investigation now: Click here to join the investigation.

Or for more information, contact Jim Baker at [email protected] or (619) 814-4471.

There is no cost or obligation to you.

Background of the investigation
On February 18, 2026, Fiverr reported its fourth quarter and full year 2025 financial results and issued its full-year 2026 outlook. Among other things, the Company disclosed that fourth quarter marketplace revenue declined 2.7% year-over-year to $71.5 million, and that annual active buyers declined 13.6% year-over-year to 3.1 million.

In addition, Fiverr issued full-year 2026 revenue guidance of $380 million to $420 million, representing year-over-year growth of negative 12% to negative 3%. The Company further disclosed that its transformation plan would focus on high-value work while intentionally deprioritizing low-end transactions.

In light of this disclosure, Johnson Fistel is investigating whether Fiverr complied with the federal securities laws. If you suffered losses from your investment in Fiverr stock, contact Johnson Fistel.

About Johnson Fistel, PLLP | Securities Fraud & Investor Rights
Johnson Fistel, PLLP is a nationally recognized shareholder-rights law firm with offices in California, New York, Georgia, Idaho, and Colorado. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits and also assists foreign investors who purchased shares on U.S. exchanges. To learn more, visit www.johnsonfistel.com.

Achievements
In 2024, Johnson Fistel was ranked among the Top 10 Plaintiff Law Firms by ISS Securities Class Action Services, reflecting the firm’s effectiveness in advocating for investors and recovering approximately $90,725,000 for clients in cases where it served as lead or co-lead counsel.

Attorney advertising.
Past results do not guarantee future outcomes.
Services may be performed by attorneys in any of our offices.
Johnson Fistel, PLLP has paid for the dissemination of this promotional communication, and Frank J. Johnson is the attorney responsible for its content.

Contact

Johnson Fistel, PLLP
501 W. Broadway, Suite 800
San Diego, CA 92101
James Baker, Investor Relations – or – Frank J. Johnson, Esq.
(619) 814-4471 | [email protected] | [email protected]

, /PRNewswire/ -- Pomerantz LLP is investigating claims on behalf of investors of Fiverr International Ltd. ("Fiverr" or the "Company") (NYSE: FVRR). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.

The investigation concerns whether Fiverr and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices. 

[Click here for information about joining the class action]

On February 18, 2026, Fiverr reported its fourth quarter and full year 2025 financial results and issued its full-year 2026 outlook. Among other items, the Company disclosed that fourth quarter marketplace revenue declined 2.7% year-over-year to $71.5 million, and that annual active buyers declined 13.6% year-over-year to 3.1 million. In addition, Fiverr issued full-year 2026 revenue guidance of $380 million to $420 million, representing year-over-year growth of negative 12% to negative 3%. The Company further disclosed that its transformation plan would focus on high-value work while intentionally deprioritizing low-end transactions. 

On this news, Fiverr's stock price fell $1.03 per share, or 8.34%, to close at $11.32 per share on February 19, 2026.

Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.

Attorney advertising. Prior results do not guarantee similar outcomes. 

CONTACT:
Danielle Peyton
Pomerantz LLP
[email protected]
646-581-9980 ext. 7980

SOURCE Pomerantz LLP