Track market-moving stories before they get noisy

While hyperscalers like Alphabet (GOOGL), Amazon (AMZN), and Meta Platforms (META) struggled after earnings, Apple (AAPL) continues to demonstrate outstanding stock strength as the rest of tech flatlines. Tom White takes a bite into Apple's technical trends to show how bullish price action persisted in the face of a selloff in the Nasdaq-100 (NDX).

Meta Platforms' (META -0.13%) Muse has set the bar for personal AI agents. Just a few weeks after its release, the agentic AI app has more than 10 million users, and 25% of them use it nearly every day.

But the biggest problem with Muse has nothing to do with how the agent works. The issue is that it's simply expensive and unprofitable.

While that type of problem is nothing new in the tech world, it could be a serious one for Meta because there's virtually no way for it to recoup the nearly $145 billion it's spending this year on AI-related capital expenditures by selling Muse subscriptions.

Image source: Getty Images.

Meta is already spending heavily, and Muse will make it worse
Lots of AI companies are troubled by rising AI price tags these days, but Meta's business model is different from those of many of its peers -- and I think that puts the company at a distinct disadvantage.

For example, Microsoft's management recently said the company will spend up to $190 billion on capital expenditures this year, with most of that going to AI infrastructure. That's even higher than Meta's AI capex spending, but there's a big difference between the two: Microsoft is generating significant sales directly related to AI.

In its fiscal 2026 (which ended June 30), the company's Azure cloud computing unit benefited from selling AI services to customers, resulting in Azure's annualized revenue run rate topping $100 billion for the first time ever.

Those sales go a long way toward making Microsoft's hefty AI spending make financial sense. And because it rents AI cloud computing capacity to many customers -- it's the world's second-largest cloud provider -- it is uniquely positioned to continue generating AI-related cloud sales for years to come.

Meta is in a completely different position. It generates nearly 98% of its revenue from advertising. Its social media apps are designed to keep users scrolling, and Meta makes its profits from in-app display ads.

That has worked well for the company so far, but AI is an entirely different type of platform. Users want agents to perform tasks and answer questions. It's much harder to insert ads into a conversation with an AI agent when the entire point of it is to work for you in the background.

It's not that Meta won't figure out a way to put some ads into Muse, but rather that it likely won't be as easy to do as it is on Facebook or Instagram, and that those ads probably won't be as lucrative.

META Meta Platforms$623.72-$0.80 (-0.13%)

NASDAQ · As of 11:57 AM ET 10/30/26

This isn't helping either
In addition to AI agents being more difficult to monetize with ads, they are also expensive to run. Muse has several paid tiers right now, including $20 and $100 monthly subscription options, but most people using it are sticking to the free version, which gives them a limited number of requests.

All AI models spend "tokens" when completing tasks, and higher-end models generally burn through more tokens when they work than older models.

Analysts at Deutsche Bank estimate that Muse's free tier -- which gives each user 100 million AI tokens per month -- probably costs Meta about $40 per user per month. And that's the free version. Higher tiers offering more tokens could cost Meta even more, even though the users are paying for their subscriptions. For example, OpenAI's ChatGPT Pro plan costs users $200 per month, but it can cost the company up to $14,000 in actual token usage, according to SemiAnalysis.

Meta CEO Mark Zuckerberg said on the company's third-quarter earnings call that he expects to eventually start charging businesses fees on the transactions Muse makes. The company isn't doing that yet, and Zuckerberg also said that Meta intends to keep the free version of Muse free to users.

So, for now, Muse costs Meta money, doesn't have ads, and when Muse makes purchases on behalf of its users, Meta isn't getting any fees from the sellers for those transactions. All of that may be great for Muse's users and encourage rapid adoption, but it's bad for Meta when it comes to converting its massive AI spending into profitable income streams.

What's more, there's a lot of competition among AI agents now, especially with OpenAI's dots and Anthropic's Duet. Muse may have raced ahead with users initially, but it's costing Meta financially, and the agentic AI field is about to get very crowded. That all adds up to a big problem for Meta and its shareholders.

Tesla (TSLA -0.74%) investors have plenty of reasons to look toward the future, and it could certainly be both wild and lucrative. Robotaxis, artificial intelligence (AI), and humanoid robots could open new revenue opportunities and an entirely different future -- the possibilities are exciting, no doubt about it.

But Tesla remains heavily dependent on selling electric vehicles (EVs), and developing that future comes with a hefty bill. The EV maker's latest results show just how quickly that bill is growing. Third-quarter research and development (R&D) expenses jumped 69% year over year to $2.76 billion, while operating profit declined 56% to $718 million.

The question facing Tesla investors is a big one: Should they applaud the long-term investment or worry about the pressure on near-term earnings?

The bill is getting bigger
Tesla's third-quarter earnings pressure wasn't caused by a deteriorating automotive gross margin. Its automotive gross margin actually improved from 17% to 18.5% year over year, while companywide gross profit increased roughly 9%, from $5.05 billion to $5.49 billion. So what happened, you ask?

The trouble came further down the income statement. R&D expenses increased by $1.13 billion, more than twice the approximately $440 million increase in gross profit. Selling, general, and administrative expenses also rose. Together, those increases overwhelmed the improvement in gross profit and helped push operating profits lower.

Data source: Tesla SEC filings. Chart generated with ChatGPT by author.

Investors knew the bill for Tesla's sharp turn into more of a technology company, rather than a traditional EV maker, would come due over time. Tesla explained the R&D increase was largely due to costs associated with its AI development and other programs, including Optimus, silicon development, battery technologies, and new vehicles, as well as higher stock-based compensation, per Tesla's SEC filing.

There's an important mental note for investors to make here. This R&D spending is related to Tesla's broader investment push, but it isn't the same as capital expenditures. Tesla separately expects more than $20 billion in 2026 capex, including computing infrastructure, data centers, manufacturing facilities, and other long-lived assets.

The difference for investors is that R&D generally reduces earnings as incurred, while capital expenditures use cash up front and generally affect earnings over time through depreciation. Tesla faces both pressures as it builds toward its future, which could be wildly lucrative and also wildly expensive.

Image source: Tesla.

Spending isn't the same as succeeding
To be fair, cutting R&D spending just to make one quarter's earnings look better would likely be shortsighted -- which, unfortunately, Wall Street and big business can sometimes be. If Tesla's investments produce valuable technology and commercially successful products, accepting lower profits today could prove a great move for long-term investors.

That said, a larger research budget doesn't guarantee a successful product breakthrough, much-needed customer adoption, or improved profitability in the end.

Also, on the downside for investors, you might have considered operating profit improving from the second to the third quarter a silver lining, but that may not be the case. Operating profit improved from $398 million in the second quarter to $718 million in the third, but Tesla benefited from a one-time refund on tariffs during the third quarter. Even with that boost, operating profit was down significantly year over year.

TSLA Tesla$400.32-$2.99 (-0.74%)

NASDAQ · As of 11:55 AM ET 10/30/26

What it all means
For long-term investors, the takeaway is pretty simple. Tesla's rising R&D expense helps explain today's operating profit pressure, even as automotive gross margin improved, but the spending itself doesn't validate tomorrow's growth story. Investors will want to watch for autonomous technology milestones, a growing number of paying customers for its future businesses, and evidence that new businesses can generate profits.

Tesla is spending heavily to build its future. Investors need that future to eventually start paying off, and that timeline is highly uncertain -- which is one word Wall Street, and most investors, don't like.

Uber Technologies (UBER - 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 ride-hailing company have returned -3.2%, compared to the Zacks S&P 500 composite's +0.7% change. During this period, the Zacks Internet - Services industry, which Uber falls in, has lost 15.9%. 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.

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.

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, Uber is expected to post earnings of $0.94 per share, indicating a change of -69.8% from the year-ago quarter. The Zacks Consensus Estimate has changed +0.6% over the last 30 days.

The consensus earnings estimate of $3.2 for the current fiscal year indicates a year-over-year change of -39.6%. This estimate has changed -0.5% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $4.57 indicates a change of +42.8% from what Uber is expected to report a year ago. Over the past month, the estimate has changed -0.5%.

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 Uber.

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 Uber, the consensus sales estimate for the current quarter of $14.74 billion indicates a year-over-year change of +9.4%. For the current and next fiscal years, $57.91 billion and $66.86 billion estimates indicate +11.3% and +15.5% changes, respectively.

Last Reported Results and Surprise HistoryUber reported revenues of $14.19 billion in the last reported quarter, representing a year-over-year change of +12.2%. EPS of $1.17 for the same period compares with $0.63 a year ago.

Compared to the Zacks Consensus Estimate of $14.21 billion, the reported revenues represent a surprise of -0.13%. The EPS surprise was +40.96%.

Over the last four quarters, Uber surpassed consensus EPS estimates three times. The company topped consensus revenue estimates two times over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

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.

Uber is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Uber. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

SummaryAlphabet Inc. retains a Strong Buy rating despite a 17% stock decline since last coverage, as core growth drivers remain intact.GOOG's search growth slowed to 12%, with AI mode queries monetizing below traditional search, but management is actively addressing the monetization gap.Cloud revenue surged 103% to $30.7B with margins rising to 36.2%, and the backlog reached $561B, signaling robust forward demand.CapEx intensity and dilution are near-term concerns, but I expect free cash flow trends to reverse past 2027 as AI and cloud investments mature. jetcityimage/iStock Editorial via Getty Images

Introduction I last covered Alphabet Inc., aka Google (GOOG) (GOOGL) back in early October, as I gave it a Strong Buy rating based on the fact that the firm had

4.15K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

U.S. stocks traded lower this morning, with the Nasdaq Composite falling more than 600 points on Friday.

Following the market opening Friday, the Dow traded down 0.31% to 52,181.28 while the NASDAQ fell 2.36% to 25,565.66. The S&P 500 also fell, dropping, 1.20% to 7,627.51.

Leading and Lagging Sectors

Consumer staples shares jumped by 2.2% on Friday.

In trading on Friday, information technology stocks fell by 3.3%.

Top Headline

Amazon.com Inc. (NASDAQ:AMZN) shares fell around 5% on Friday after the company reported weaker-than-expected financial results for the third quarter.

Amazon posted third-quarter revenue of $201.94 billion, missing the consensus estimate of $202.31 billion, according to Benzinga Pro. The company reported earnings of $1.89 per share for the quarter, missing estimates of $1.97 per share. Amazon expects fourth-quarter revenue to be between $240 billion and $247 billion versus estimates of $244.51 billion.

Equities Trading UP
           

Smart Logistics Global Ltd (NASDAQ:SLGB) shares shot up 51% to $0.31 after the Hong Kong-based business-to-business contract logistics provider said Nasdaq gave it more time to meet listing requirements. Shares of TNL Mediagene (NASDAQ:TNMG) got a boost, surging 45% to $4.42. TNL Mediagene completed the sale of Japanese business in management buyout. Nuburu Inc (NYSE:BURU) shares were also up, gaining 40% to $0.52. Nuburu shares jumped 109% on Thursday after the company announced it regained NYSE compliance. Equities Trading DOWN

Acumen Pharmaceuticals Inc (NASDAQ:ABOS) shares dipped 85% to $0.35 after the company said its Phase 2 ALTITUDE-AD trial of sabirnetug in early Alzheimer’s disease missed its primary endpoint and key secondary endpoints. Shares of Solowin Holdings Ltd (NASDAQ:AXG) were down 44% to $2.08 after dipping 35% on Thursday. Alphatec Holdings Inc (NASDAQ:ATEC) was down, falling 36% to $7.32 after reporting weak third-quarter results. Commodities 

In commodity news, oil traded up 1.8% to $103.88 while gold traded down 1.7% at $3,964.80.

Silver traded down 4.4% to $50.075 on Friday, while copper fell 1.2% to $6.5250.

Euro zone

European shares were mixed today. The eurozone’s STOXX 600 declined 0.3%, while Spain’s IBEX 35 Index fell 0.8%, London’s FTSE 100 gained 0.2%, Germany’s DAX declined 0.8%, while France’s CAC 40 rose 0.1%.

Asia Pacific Markets

Asian markets closed mixed on Friday, with Japan’s Nikkei 225 dipping 2.12%, Hong Kong’s Hang Seng index gaining 1.46%, China’s SSE Composite Index declining 1.44% and India’s BSE Sensex gaining 0.42%.

Economics

U.S. employments costs rose by 0.8% in the third quarter following a 0.9% rise in the previous period.

Photo via Shutterstock

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Amazon stock (AMZN) fell 2% on Friday after the company's third-quarter results disappointed investors. However, most analysts remain bullish on the shares, pointing to the longer-term growth potential of Amazon Web Services (AWS) and the company's expanding artificial intelligence business.

Andy Jassy just put a public deadline on a plan that could pull customers away from NVIDIA, but the terms Amazon left unspoken may matter more than the ones it announced.

Amazon (NASDAQ:AMZN | AMZN Price Prediction) Chief Executive Andy Jassy used the company’s third-quarter call on October 29, 2026, to put a date on a plan Amazon had only suggested at before. Speaking about Trainium, the AI chip Amazon has so far kept inside AWS, he said: “We believe we’re going to have a very significant business selling chips externally, and we’re going to start in late 2027.”

The stock responded to the full report, which included quarterly earnings as well as the chip news. Diluted EPS of $1.89 missed the $1.96 consensus, and shares fell 7.30% to $226.00 after hours. That compounded a 4.25% regular-session drop to a $243.79 close, which valued Amazon at $2.63 trillion.

The dominant supplier Trainium would compete with, NVIDIA (NASDAQ:NVDA), closed at $213.66, down 0.8%, before Amazon’s call began. Its after-hours price of $210.09 is too small a move to read as a verdict on Amazon’s plan. What matters for shareholders is how large outside chip sales become, given that Amazon will review the allocation each year and can quietly shrink it.

What Amazon Committed To and What It Left Out
The commitment is a stated plan with a start window of late 2027. Amazon named no outside buyer, price, volume, chip generation, or revenue target, and Jassy said it would review the balance “probably every year.”

The idea has been building for some time: Jassy’s April 9, 2026, shareholder letter said “it’s quite possible we’ll sell racks of them to third parties in the future,” and in June an AWS executive was reported to have confirmed early talks with unknown buyers.

Why Amazon Wants to Sell Chips at All
Jassy described the trade-off himself. A chip sold outright books revenue when it leaves inventory, while the same chip rented through AWS can earn more revenue and free cash flow over a five-to-six-year life.

Upfront cash matters because trailing 12-month free cash flow was a $42.4 billion outflow. Amazon repeated about $220 billion of 2026 capital spending and said it will “spend meaningfully more in 2027.”

Trainium and Graviton run at more than $25 billion a year, meaning the latest pace stretched over a full year. Customer revenue commitments rose more than 20 times year over year.

How Much This Threatens NVIDIA
The sharper threat is software, because Amazon open-sourced TorchNeuron so developers can run “existing PyTorch code” on Trainium without rewriting it, which undermines the CUDA lock-in that keeps buyers on NVIDIA.

Jassy said only two companies pair a large cloud with a chip good enough to sell. Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) TPU unit is the obvious comparison.

Scale still favors NVIDIA. Its data center revenue reached $89.02 billion in one quarter, up 117%, and AWS itself is deploying an additional 2 million NVIDIA GPUs.

Manufacturing supply is the main constraint. Jassy said advanced chipmakers share one manufacturer and “everybody gets an allocation,” so every Trainium sold outside is one AWS cannot rent against its $578 billion backlog.

Demand for Trainium is also concentrated. Anthropic reportedly pledged more than $100 billion of AWS spending over 10 years for up to 5 gigawatts of Trainium capacity, yet it also buys NVIDIA systems.

What Amazon’s Chip Plan Means for AMZN Shareholders
Amazon’s core cloud business remains its strongest support. AWS sales rose 39% to $46.0 billion, and fourth-quarter net sales guidance of $240 billion to $247 billion points to continued growth.

The chip plan adds a second way to turn heavy spending into cash, although bigger 2027 budgets could keep free cash flow negative. NVIDIA offers more direct exposure to AI chips, while Amazon combines the cloud and chip businesses in one company (we reverse-engineered what the biggest tech winners looked like early and put the pattern in a free Next Nvidia Playbook).

The trigger to check is Amazon naming its first outside Trainium buyer and price. If none appears before late 2027, AWS will likely remain the main driver of how the stock is valued.

Contact [email protected] for any questions or corrections.

CNBC's Kate Rooney joins 'Squawk on the Street' with the latest news surrounding Amazon's latest earnings report.

SummaryAdvanced Micro Devices, Inc. stands to benefit significantly from Anthropic's IPO and its $20B+ hardware supply agreement.Anthropic's S-1 filing reduces counterparty risk, highlights strong cash reserves, and confirms a non-cancellable commitment to AMD barring material breach.AMD avoids shareholder dilution in the Anthropic deal, pays cash for equity, and gains potential upside if Anthropic's IPO succeeds.I reiterate my Buy rating on AMD with a $725 end-2027 price target, citing robust AI demand and favorable risk-reward scenarios.Looking for a portfolio of ideas like this one? Members of The Pragmatic Investor get exclusive access to our subscriber-only portfolios. Learn More » AlexSecret/iStock via Getty Images

Thesis Summary The upcoming Anthropic, PBC (ANT) IPO is the most anticipated event for investors in the coming months, and it has already shifted a lot of the perceptions around the AI trade.

The S-1

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Analyst’s Disclosure: I/we have a beneficial long position in the shares of AMD either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

AMD's Data Center revenue just doubled and Helios is shipping ahead of schedule, but the path to $1,000 a share by 2027 depends on a few critical variables that could make or break the entire thesis.

When AMD (NASDAQ:AMD | AMD Price Prediction) reported its second quarter, Data Center revenue came in at $6.72B, up 107%. That segment now makes up 58% of total revenue. CEO Lisa Su said AMD heads into the second half “with strong momentum as EPYC demand accelerates, Instinct deployments scale and Helios begins to ramp.” Investors have responded.

Shares are up 164.77% year-to-date at $567.04, even after a 10.08% decline over the past month. Helios racks are shipping and AMD has gigawatt-scale deals with OpenAI, Meta Platforms (NASDAQ:META) and Anthropic. Let’s look at what AMD needs to do to hit $1,000 per share in 2027.

Wall Street’s Target Lags Fast-Rising Estimates
The average analyst price target of $637.61 suggests 12% of upside. That gap is small because the stock has run so far, but the forecasts behind it are aggressive. Analysts expect 2026 EPS of $7.5884 to rise to $15.7629 in 2027, growth of 108%. Revenue is projected to climb 75%.

The 2027 EPS consensus stood at $13.4921 three months ago, meaning estimates have climbed 17% in a single quarter. AMD has also beaten EPS and revenue estimates in each of its last four quarters. That streak suggests 2027 results could come in above forecasts.

Here’s What It Takes for AMD to Reach $1,000
At today’s price, AMD trades at 36x 2027 estimates. The stock commands a premium to the S&P 500’s forward multiple of roughly 21x to 23x, which makes sense for earnings expected to more than double.

At $1,000, the multiple would be 63x. The multiple is steep, but Su told analysts AMD expects to significantly exceed its prior $20 annual EPS target. If 2027 earnings reach the high estimate of $20.25, $1,000 works out to about 49x.

What Could Push AMD to $1,000?

Helios ramp: Customer demand is tracking ahead of AMD’s initial forecast. Anthropic’s first gigawatt deployment begins in the first half of 2027.
Data center doubling: Management expects Data Center revenue to more than double year-over-year in 2027, with server revenue growing more than 70%.
Bigger market: AMD raised its forecast for the data center AI accelerator market to $1.4 trillion by 2030.
Overflow demand: NVIDIA (NASDAQ:NVDA) chief Jensen Huang said in August, “Our demand is much higher than 70%. Our supply allows us to confidently deliver 70%.” Demand that NVIDIA’s supply can’t cover gives AMD room to grow.

AMD’s History Says $1,000 Is Possible
Reaching $1,000 requires a 76% gain. Since 2000, AMD has beaten that mark in eight calendar years. Shares rose 348% in 2009. Shares also rose 295% in 2016, 148% in 2019 and 128% in 2023 (we studied what the biggest tech winners looked like before those runs and put the pattern in a free playbook here).

With a market cap near $925.8B, gains like that get harder to repeat. Still, 2026 has already delivered more than double the needed return.

$1,000 Is a Stretch, but the Blueprint Exists
Reaching $1,000 would take a 76% gain in 2027. The pieces are in place. Estimates are climbing quickly, there is a four-quarter beat streak and a Helios ramp that management says is running ahead of plan.

The main hurdles are Helios yields, data center power availability and export controls. A 63x multiple would also leave little margin if the broader market turns down. The incumbent offers a useful valuation comparison.

NVIDIA trades at 23x fiscal 2027 estimates and 14x fiscal 2028 estimates, so both stocks benefit if AI spending remains strong. Returns at this level shouldn’t be expected every year, but we’ve outlined the plan for how AMD could see outsized returns in 2027.

Contact [email protected] for any questions or corrections.

SummaryAdvanced Micro Devices, Inc. invests $1 billion in Meta’s equity raise, deepening their compute-for-equity partnership and signaling strategic alignment in AI infrastructure.AMD’s participation, though just over 1%, is proportionally larger relative to its market cap and cash than Nvidia’s, reinforcing its commitment to Meta’s AI ambitions.My price target for AMD rises to $830.40, reflecting 47% upside, with Helios and rack-level AI solutions expected to drive margin and free cash flow expansion by 2026.AMD’s net cash position is projected to reach $55.25 billion by 2028, providing significant flexibility to offset dilution from warrant exercises tied to Meta and OpenAI.Looking for a helping hand in the market? Members of The Aerospace Forum get exclusive ideas and guidance to navigate any climate. Learn More » nmlfd/iStock via Getty Images

Advanced Micro Devices, Inc. (AMD) has announced that it will invest $1 billion in Meta's (META) equity offering. I believe it is a very interesting development for both companies building

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Key Takeaways AMD expands its Meta partnership to strengthen its AI infrastructure footprint.
AMD's Data Center revenues surged 107% to $6.7 billion in Q2 2026.
AMD shares gained 164.5% YTD, outperforming the broader technology sector.

Advanced Micro Devices (AMD - Free Report) is benefiting from accelerating demand for artificial intelligence (AI) infrastructure, expanding hyperscaler partnerships and growing adoption of its EPYC processors and Instinct GPUs. The company recently strengthened its strategic partnership with Meta Platforms to support the latter’s superintelligence infrastructure, enhancing its competitive position against NVIDIA (NVDA - Free Report) and Broadcom (AVGO - Free Report) . The collaboration spans CPUs, GPUs, networking, rack-scale systems and software, positioning AMD to capture a larger share of hyperscaler AI investments.

AMD’s Helios rack-scale solutions are undergoing testing at Meta ahead of broader deployment, while EPYC processors power Meta’s Muse AI agent. Meta has deployed millions of EPYC CPUs and plans to adopt sixth-generation EPYC processors. AMD Instinct GPUs support Meta’s AI training, ranking and recommendation workloads, with plans to deploy customized Instinct GPUs based on the MI450 architecture. The collaboration encompasses ROCm software optimization, future MI500 GPUs and gigawatt-scale AI infrastructure. AMD also plans to invest $1 billion in Meta’s equity offering.

AMD’s expanding AI ecosystem strengthens its growth prospects. Partnerships with OpenAI, Anthropic and Microsoft support broader adoption of its Helios platform. In the second quarter of 2026, Data Center revenues surged 107% year over year to $6.7 billion, driven by robust EPYC and Instinct demand. AMD expects the Data Center business to more than double in 2027, while server CPU revenues are projected to increase more than 80% year over year in the second half of 2026 and more than 70% in 2027.

AMD’s expanding AI infrastructure portfolio, stronger hyperscaler partnerships and robust demand for EPYC processors and Instinct accelerators position it well to challenge NVIDIA and Broadcom and drive top-line growth. For the third quarter of 2026, AMD expects revenues of approximately $13 billion, plus or minus $300 million. The midpoint implies growth of roughly 41% year over year and 13% sequentially.

How Competitors Fare Against AMDAMD’s prospects suffer from stiff competition from companies like NVIDIA and Broadcom, which are major competitors in the AI space.

NVIDIA’s accelerated computing platform remains central to AI training, inference and agentic workloads as customers scale model deployment. In the second quarter of fiscal 2027, revenues rose 106% year over year to $96.2 billion, while Compute & Networking revenues increased 114% to $88.3 billion. Data Center revenues reached $89 billion, up 117%, with Blackwell Ultra driving the expansion.

Broadcom is benefiting from expanding AI infrastructure spending, with custom XPUs and networking driving semiconductor growth while VMware supports infrastructure software. Multiyear engagements with six XPU customers, broader Ethernet adoption and rising AI deployments provide long-term revenue visibility. Broadcom now expects fiscal 2026 AI semiconductor revenues of $58 billion, up 186% year over year and above its prior $56 billion outlook.

AMD’s Share Price Performance, Valuation & EstimatesAdvanced Micro Devices shares have surged 164.5% year to date, outperforming the broader Zacks Computer and Technology sector’s rise of 17.4%.

AMD Stock’s Price Performance
Image Source: Zacks Investment Research

AMD stock is overvalued, with a forward 12-month price/sales of 11.57X compared with the Computer and Technology sector’s 5.6X. AMD has a Value Score of F.

AMD’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 earnings is pegged at $7.55 per share, which has been unchanged over the past 30 days. This suggests 81.06% year-over-year growth.

AMD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The stock is trading at its lowest levels since early August after the broad tech selloff.

Key Takeaways 3M's segment revenues rose 0.4% to $1.999 billion, with organic sales up 0.5%.Semiconductor, aerospace and data center demand supported segment growth.Consumer electronics and automotive weakness pressured margins, which fell to 23.4%. 3M Company (MMM - Free Report) continues to benefit from strength in its Transportation and Electronics business segment, supported by growth in semiconductors, aerospace, data centers, advanced materials and commercial branding. The segment’s revenues increased 0.4% year over year to $1.999 billion in the third quarter of 2026, while organic sales grew 0.5%.

The results were driven by strong demand in the semiconductor, aerospace and data center markets. Commercial branding also delivered mid-single-digit growth, reflecting continued strength in the business. Advanced materials contributed positively to the segment’s organic growth as well. These gains helped offset weakness in other key end markets.

The segment’s performance reflects MMM’s continued focus on differentiated product innovation, commercial excellence and growth investments. The company launched 87 new products during the quarter, up 24% year over year, while its efforts to strengthen its technology pipeline and improve operational productivity continued to support business performance.

However, weakness in consumer electronics and automotive markets remains a concern. Consumer electronics continued to face industry-wide memory shortages, while softness in the automotive market weighed on segment growth. Additionally, the segment’s operating income margin declined to 23.4% from 24.3% in the year-ago quarter, reflecting continued growth investments and cost dis-synergies following the exit from PFAS manufacturing.

Despite these challenges, increasing demand for semiconductors and data centers, along with continued strength in aerospace, advanced materials and commercial branding, provides growth opportunities for the segment. However, persistent softness in consumer electronics and automotive markets, along with ongoing investment-related costs, may weigh on its near-term profitability.

Segmental Snapshot of MMM’s PeersAmong 3M’s major peers, Emerson Electric Co. (EMR - Free Report) is witnessing solid momentum in the power and life sciences markets, within the Control Systems & Software group under the Software & Systems segment. Sales from Emerson’s Software & Systems segment increased 11% year over year to $1.64 billion in the third quarter of fiscal 2026.

Its another peer, ITT Inc.’s (ITT - Free Report) Connect and Control Technologies segment is benefiting from growth in connector solutions and aerospace and defense demand. Also, the acquisition of kSARIA augurs well for ITT’s segment. Revenues from ITT’s unit’s organic revenues increased 17.3% year over year in the second quarter of 2026, while organic orders surged 59%, aided by defense and connector strength.

The Zacks Rundown for MMMShares of 3M have gained 6.5% in the past year against the industry’s decline of 24.4%.

Image Source: Zacks Investment Research

From a valuation standpoint, 3M is trading at a forward price-to-earnings ratio of 18.28X, above the industry’s average of 15.32X. MMM carries a Value Score of C.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MMM’s 2026 earnings has increased over the past 60 days.

Image Source: Zacks Investment Research

MMM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

LOS ANGELES, Oct. 30, 2026 (GLOBE NEWSWIRE) -- The Law Offices of Frank R. Cruz reminds investors of upcoming lead plaintiff deadlines in securities class action lawsuits filed on behalf of shareholders of Gildan Activewear Inc., D-Wave Quantum, Inc., and Bank Of America Corporation. Investors who wish to seek appointment as lead plaintiff must file a motion by the deadlines listed below.

If you lost money on these investments, contact The Law Offices of Frank R. Cruz about these class actions to learn about your legal rights, by calling 310-914-5007 or emailing [email protected].

Gildan Activewear Inc. (NYSE: GIL)

Class period: February 19, 2025 through June 15, 2026Lead plaintiff motion deadline: December 14, 2026Case: Cortez v. Gildan Activewear Inc. et al., filed in the U.S. District Court Northern District of New York
According to the Gildan Activewear Inc. complaint, throughout the class period the defendants made false and/or misleading statements and/or failed to disclose that: (i) Gildan did not have adequate internal controls; and (ii) Gildan used channel stuffing to create an appearance of revenue.

If you are a Gildan Activewear Inc. shareholder who suffered a loss, click here to participate.

D-Wave Quantum, Inc. (NASDAQ: QBTS)

Class period: February 26, 2026 through August 25, 2026Lead plaintiff motion deadline: December 15, 2026Case: Fessler v. D-Wave Quantum, Inc. et al., filed in the U.S. District Court California Northern District
According to the D-Wave Quantum, Inc. complaint, throughout the class period the defendants made false and/or misleading statements and/or failed to disclose that: (i) Defendants materially overstated D-Wave’s business and financial prospects; and (ii) the foregoing was reasonably likely to negatively impact the Company’s business and reputation.

If you are a D-Wave Quantum, Inc. shareholder who suffered a loss, click here to participate.

Bank Of America Corporation (NYSE: BAC)

Class period: August 1, 2025 through October 13, 2026Lead plaintiff motion deadline: December 15, 2026Case: New England Teamsters Pension Fund v. Bank of America Corporation et al., filed in the U.S. District Court Southern District of New York
According to the Bank Of America Corporation complaint, throughout the class period the defendants made false and/or misleading statements and/or failed to disclose that: (i) systemic weaknesses in BANA's BSA/AML program caused it to fail to properly monitor trillions of dollars in transactions and to miss, delay, or file inaccurate or incomplete suspicious activity reports involving billions of dollars in suspicious activity; (ii) internal reports had documented BANA's BSA/AML deficiencies for years, yet BANA had not adequately remedied them after the 2024 Consent Order; (iii) BANA also had deficiencies in its sanctions compliance program and processed transactions later identified as apparent violations of multiple sanctions programs; and (iv) fixing these deficiencies required significant additional compliance resources and exposed BANA to substantial penalties and costs.

If you are a Bank Of America Corporation shareholder who suffered a loss, click here to participate.

What should investors in these cases do now?

Investors need not take any action at this time to be class members in these cases. Investors may retain counsel of their choice or take no action and remain absent class members. No class has been certified yet in any of these cases.

For more information about these class actions or your rights, contact Frank R. Cruz of The Law Offices of Frank R. Cruz at 310-914-5007, by email at [email protected], or visit the firm's case page.

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

About The Law Offices of Frank R. Cruz

The Law Offices of Frank R. Cruz investigates and prosecutes securities fraud and corporate malfeasance class actions. With nearly 20 years of litigation experience, the firm focuses on complex securities class actions and gives each client personal, one-on-one attention throughout the legal process.

Prior results do not guarantee a similar outcome.

Contact

Frank R. Cruz
The Law Offices of Frank R. Cruz
Los Angeles, CA
Email: [email protected]
Telephone: 310-914-5007
www.frankcruzlaw.com

Follow The Law Offices of Frank R. Cruz for updates on Twitter: twitter.com/FRC_LAW

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

Silver has shed more than half its value from a record set just nine months ago, and the forces behind the collapse show no sign of reversing. Two signals now stand between a fragile floor and a deeper breakdown.

Silver fell 2.29% to $50.95 on Friday, October 30, 2026. That is its lowest price since November 2025 and roughly 58% below its record of $121.64.

The record came on January 29, 2026, with prices ranging from $121.58 to $121.67 depending on the venue. Within about 30 hours, silver fell more than 30% and traded below $75 on January 30.

The selling sped up on Thursday, October 29, when spot silver fell about 3.5% to near $52. The iShares Silver Trust (NYSEARCA:SLV) lost 3.63% to close at $47.28, then slid to $46.80 after hours.

Gold fell about 1.3% to roughly $4,010, and the VanEck Gold Miners ETF (NYSEARCA:GDX) dropped 3.12% to $81.33. SLV holders own a metal that looks deeply oversold, yet none of the forces behind the drop have turned.

Fed Hike Odds Are Driving the Sell-Off Thursday’s drop came even as the dollar index fell 0.33% and the 10-year yield eased to 4.94%. Both moves usually help silver, which leaves the Fed as the source of the pressure.

The Federal Reserve, on October 28, held rates at 3.75% to 4.00% in a 10-2 vote. Lisa Cook and Beth Hammack dissented, wanting an immediate quarter-point hike. CME FedWatch prices roughly a 75% chance of a December hike, and some reported odds run as high as 86%.

Silver pays no yield, so every expected rate increase raises the cost of holding it instead of cash or Treasuries. Inflation usually helps precious metals, but September PCE prices rose 0.5% for the month, and annual inflation went up to 3.6% from 3.4%. Third-quarter GDP also grew at a 3.4% annualized pace versus a 3.2% forecast, and that hot data raises hike odds, which does silver more harm than inflation does good.

Why Silver Falls Harder Than Gold Gold sits about 28% below its 2026 record of $5,598.58. Silver is part industrial metal and part monetary metal, trades in a smaller market and draws leveraged speculators, so its moves run larger.

The January surge brought in that leverage, and higher margin requirements later forced traders to sell (riding a mania is one thing, planning the exit is the harder half, which is the whole subject of our free bubble survivor’s handbook). “The increase in margin money requirement at COMEX and MCX in February and March had already dampened the sentiments,” said Vikas Prakash Singh, a professor of economics at Great Lakes Institute of Management.

JPMorgan (NYSE:JPM | JPM Price Prediction) expects silver demand from solar panel makers to fall 30% this year, or roughly 60 million ounces. The bank warns the market could flip from a structural deficit to oversupply, and that deficit was the core of the bull case.

Oversold Readings Still Need a Catalyst As of October 27, LSEG data showed silver 25% below its 200-day moving average, a long-run trend line. That was the widest gap since the March 2020 pandemic liquidity crunch.

Managed-money net longs, meaning the bullish positions held by speculators, are at their lowest since the first quarter of 2024, which can fuel a rebound once cooler inflation or falling hike odds show up. VT Markets principal analyst Daniel Munday calls $50 critical because the rally began there last November.

What Could Turn SLV Around Before Silver Breaks $50 SLV holds physical silver, pays no income and charges an annual fee, so it tracks the metal closely. Through the October 29 close, it had fallen 26.61% year to date and 14.78% over one month, leaving it about 57% below its 52-week high of $109.83. The fund holds $26.61 billion in assets.

SLV is still up 9.37% over one year, and spot silver is up about 4.4% over 12 months. But silver’s October slide of about 15.8% has it on track for a second straight monthly loss.

Hike odds and weaker solar demand still point lower for silver, although thin speculator positioning leaves room for a rebound once the Fed outlook cools off, and short-term Treasuries pay income while hike odds stay high.

A turn in silver’s trend would likely require the metal to hold $50 and December hike odds to drop well below 75%, so those are the two signals to watch.

Contact [email protected] for any questions or corrections.

Key Takeaways JPM raises its 2026 NII forecast to $106.2B and projects roughly 10% NII growth excluding Markets in 2027.JPMorgan's average loans rose 10% to $1.6 trillion, while deposits grew 8% to $2.7 trillion in Q3 2026.JPM's 3.22X P/TB valuation, rising expenses and modest 2027 earnings growth outlook could limit upside. JPMorgan (JPM - Free Report) has raised its net interest income (NII) outlook for 2026, supported by steady loan growth, higher deposit balances and resilient customer activity. The banking giant also provided an encouraging preliminary NII outlook for 2027, suggesting that spread income momentum could continue into next year.

In the third quarter of 2026, JPMorgan's NII increased 13% year over year to $27.1 billion. Its diversified business model, strong capital position and robust profitability further support its growth prospects. However, rising operating expenses, credit-related risks and a premium valuation remain concerns. Against this backdrop, should investors consider buying JPM shares?

JPMorgan's Upbeat NII Outlook Signals Further GrowthJPMorgan's NII prospects have strengthened considerably, reflecting favorable business trends and an improving interest-rate outlook. Following its third-quarter results, management raised its full-year 2026 total NII projection to approximately $106.2 billion from the previously expected $105.5 billion.

Similarly, NII excluding Markets is now anticipated to reach approximately $97.2 billion, up from the earlier projection of $96.5 billion. For the fourth quarter, management expects total NII of roughly $28 billion and NII excluding Markets of $25.5 billion.

JPMorgan provided a preliminary central-case outlook for 2027 NII excluding Markets of approximately $107 billion. This suggests growth of roughly 10% from the implied 2026 level, signaling management's confidence in continued business expansion.

The upbeat outlook is supported by sustained growth in lending and deposits, along with expectations of a favorable interest-rate environment. Higher loan balances and improved yields on interest-earning assets are expected to support interest income, while JPMorgan's extensive deposit franchise provides a competitive funding advantage. Nonetheless, management emphasized that its 2027 projections remain preliminary and depend on several economic and market assumptions.

JPM's Loan and Deposit Growth Supports NII MomentumJPMorgan's robust balance sheet expansion reinforces its optimistic NII outlook. In the third quarter of 2026, average loans increased 10% year over year to $1.6 trillion, while average deposits grew 8% to $2.7 trillion.

NII excluding Markets advanced 6% year over year to $24.7 billion, driven by higher deposit balances, increased credit card balances and growth in wholesale lending. These factors more than offset the adverse impact of lower interest rates.

Continued lending demand across consumer and commercial businesses, coupled with deposit growth, is expected to support interest-earning asset expansion. Moreover, JPMorgan's diversified deposit base and established customer relationships provide a relatively stable funding source, strengthening its ability to sustain spread income.

The improving NII outlook is not limited to JPMorgan. Bank of America (BAC - Free Report) expects full-year 2026 NII on a fully taxable-equivalent (FTE) basis to grow approximately 8% year over year, with growth of 8% or more anticipated for 2027. Likewise, Citigroup (C - Free Report) now expects NII excluding Markets to grow in the mid-to-high 6% range in 2026, an improvement from its previous forecast of growth at the high end of the 5-6% range.

These encouraging projections indicate broader NII growth opportunities across major U.S. banks, supported by loan and deposit expansion and asset repricing. However, changes in interest rates, deposit pricing and economic conditions could influence the extent of future gains.

Other Factors to Consider for JPMorganDiversified Operations Drive Strong Results: JPMorgan's investment appeal extends beyond its improving NII prospects. Its commercial and investment banking, markets, payments, credit card and asset management businesses provide multiple sources of earnings.

The company generated net income of approximately $53 billion in the first nine months of 2026, supported by broad-based strength across its businesses. Results also reflected third-quarter investment securities losses and second-quarter gains related to Visa shares and certain equity investments.

The Commercial & Investment Bank delivered particularly strong results. Revenues for the first nine months climbed 20% year over year to $71 billion, while investment banking fees rose 33%. Markets revenues increased 23%, aided by a 49% surge in equities revenues. Management indicated that the investment banking pipeline remained robust and expected activity levels to stay healthy, subject to market conditions.

Similarly, Asset & Wealth Management performed well, with revenues rising 15% and assets under management reaching $5.21 trillion as of Sept. 30, 2026. Strong net inflows and higher market levels supported management fees, providing another source of income less directly tied to lending spreads.

Capital Strength Supports Shareholder Returns: JPMorgan ended the third quarter with a standardized common equity Tier 1 ratio of 13.9%, underscoring its solid capital position and ability to withstand potential economic or credit-related stress.

The company authorized a new $50 billion share repurchase program, effective July 1, 2026, and increased its quarterly dividend by 10% to $1.65 per share. JPMorgan's capital strength enables it to reward shareholders while continuing to invest in technology, branches, bankers and other growth initiatives.

Similarly, Bank of America increased its quarterly dividend by 14% to 32 cents per share, while Citigroup raised its payout by 11.7% to 67 cents per share.

Rising Expenses and Credit Risks Remain Concerns: Despite improving NII prospects and diversified revenue streams, JPMorgan faces challenges from rising operating expenses and credit-related uncertainties.

In the first nine months of 2026, non-interest expenses increased 14% year over year to $81.5 billion, driven by higher compensation costs, technology investments and business expansion. Management also raised its full-year 2026 adjusted expense forecast to approximately $108.6 billion from $107.5 billion, primarily reflecting higher expenses associated with stronger business volumes and revenues.

Although continued investments in technology, branches and personnel will likely support long-term growth, elevated spending could affect operating leverage and limit the benefits of higher NII in the near term.

Credit-related risks also remain a concern. In the first nine months, provision for credit losses rose 20% to $53 billion. Potential economic weakness, deterioration in borrowers' repayment capacity and changes in interest rates could further pressure asset quality and profitability.

JPM's Price Performance, Valuation and Earnings AnalysisJPMorgan shares have gained 6.6% so far this year, outperforming the industry's 1.3% growth. During the same period, Bank of America shares have declined 7.1%, while Citigroup has gained 7.7%.

YTD Price Performance
 

Image Source: Zacks Investment Research

However, JPMorgan's valuation appears relatively expensive. The stock currently trades at a trailing 12-month price-to-tangible book (P/TB) multiple of 3.22X, higher than the industry's 3.03X. 

P/TB TTM
 

Image Source: Zacks Investment Research

In comparison, Citigroup and Bank of America trade at considerably lower multiples of 1.27X and 1.82X, respectively.

The premium valuation reflects JPMorgan's strong profitability, diversified operations and leading market position. Nevertheless, it could limit near-term upside, particularly if earnings growth moderates or expenses remain elevated.

The Zacks Consensus Estimate for JPMorgan's 2026 earnings indicates 22.8% year-over-year growth, while 2027 earnings are projected to rise 3.6%. Over the past week, earnings estimates for 2026 and 2027 have remained unchanged at $24.97 and $25.87 per share, respectively.

Earnings Estimates
 

Image Source: Zacks Investment Research

Although earnings growth expectations remain positive, the relatively modest projected increase for 2027 and lack of recent upward estimate revisions suggest that much of the favorable operating outlook may already be reflected in JPMorgan's valuation.

Should Investors Buy JPM Stock Now?JPMorgan's improved NII outlook for 2026 and encouraging preliminary projections for 2027 strengthen its earnings visibility. Robust lending and deposit growth, diversified revenue streams and a solid capital position should support profitability and shareholder returns over the long term.

However, elevated operating expenses, credit-related uncertainties and the stock's premium valuation could limit near-term upside. Moreover, relatively modest earnings growth expectations for 2027 and unchanged consensus estimates suggest limited catalysts for substantial near-term appreciation.

Hence, despite JPMorgan's strong fundamentals and improving NII prospects, its current valuation does not appear to offer a particularly compelling entry point. Existing investors may consider retaining their positions, while prospective investors could wait for a more attractive valuation before buying JPM shares.

At present, JPMorgan carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways J&J's MedTech sales rose 2.5% to $8.64 billion, missing estimates and internal expectations.Abiomed weakness, competitive PFA pressures and international headwinds weighed on Q3 performance.New product launches, improving execution and Surgery's expected recovery could boost Q4 growth.
Johnson & Johnson's (JNJ - Free Report) medical devices segment, known as MedTech, offers products in the orthopedics, surgery, cardiovascular and vision markets. The MedTech segment accounts for approximately 34% of J&J's total revenues. In MedTech, J&J is a global leader in electrophysiology, circulatory restoration and heart recovery. The company is increasingly focusing on high-growth opportunities in cardiovascular devices, surgical robotics and advanced vision technologies to drive long-term growth.

J&J’s MedTech performance fell below internal expectations in the third quarter, mainly due to challenges in international markets, particularly in Cardiovascular and Surgery, as well as continued softness in the Abiomed business.

Q3 Numbers of J&J’s MedTech SegmentSegment sales increased 2.5% year over year to $8.64 billion, with operational sales growing 2.5%. The segment's growth was substantially slower than the 7.7% reported sales growth recorded by the Innovative Medicine business. Moreover, MedTech revenues fell short of the Zacks Consensus Estimate of $8.77 billion.

MedTech Sales rose 4.8% in the United States and 0.1% outside of the United States on an operational basis.

Cardiovascular sales rose 4.3% to $2.31 billion. Electrophysiology revenues increased 4.9% to $1.49 billion, driven by procedure expansion, commercial execution and new product performance, partially offset by competitive pulsed field ablation or PFA pressures, particularly in Asia-Pacific. Shockwave sales grew 16.8% to $325 million, driven by continued adoption of coronary and peripheral products as well as new product launches.

Abiomed sales declined 2.3% to $412 million in the quarter due to lower patient volumes. Over the past two quarters, MedTech’s Abiomed sales have declined due to slow procedural volumes driven by usage patterns.  The slowdown followed a recent U.K. clinical trial that questioned the benefit of Impella devices in certain high-risk procedures, prompting physicians to reassess patient selection and adopt a more cautious approach to using the device. The impact of the U.K. study is expected to linger and hurt Abiomed’s growth until the PROTECT IV data is presented in 2027. PROTECT IV is a large clinical trial of the company’s Impella device in high-risk percutaneous coronary intervention (PCI).

Worldwide Surgery declined 0.6% to $2.53 billion, primarily due to expanded volume-based procurement in China, the impact of J&J’s surgery transformation program, and Middle East disruptions to tender timing and ordering patterns. Worldwide orthopedics rose 3.2% to $2.35 billion, driven by new product launches and strong commercial execution. Worldwide Vision revenues increased 4.4% to $1.46 billion, driven primarily by higher growth in contact lenses and Surgical Vision, partially offset by inventory dynamics in contact lenses and disruptions in the Middle East in Surgical Vision.

Outlook for J&J’s MedTech in Q4 and BeyondAlthough MedTech’s operational sales growth slowed in the second and third quarters of 2026, MedTech performance is projected to improve in the fourth quarter and beyond, supported by new product launches, improving commercial execution and stabilization in some of the businesses that faced challenges during the third quarter. The company emphasized that the underlying procedural environment remains stable across key markets, indicating that the recent slowdown primarily reflects company-specific and regional challenges rather than a broad-based deterioration in demand for medical devices. However, competitive pressures in electrophysiology, weakness in Abiomed and international market headwinds could continue to weigh on near-term growth.

J&J expects Surgery to return to growth in the fourth quarter, driven by continued U.S. growth and an acceleration in EMEA. MedTech growth is expected to strengthen further in 2027.

The FDA recently approved J&J’s OTTAVA, the world’s first table -integrated soft tissue robotic system, which is considered a key new product in its portfolio, along with the VARIPULSE pulsed field ablation system for atrial fibrillation. Increased adoption of these newly launched products should contribute to better growth in future quarters. The company expects U.S. approval of its next-generation VARIPULSE Pro catheter in the fourth quarter, following its recent approval in Japan, which should strengthen its position in the fast-growing pulsed field ablation market.

J&J’s Key Competitors in the Medical Devices MarketJ&J’s MedTech unit faces strong competition from several major players in the medical device industry, such as Medtronic (MDT - Free Report) , Abbott, Stryker (SYK - Free Report) and Boston Scientific (BSX - Free Report) .

While Medtronic has a strong presence in cardiovascular, neuroscience and surgical technologies, Stryker is a major player in orthopedics and surgical equipment. Boston Scientific markets products for cardiovascular, endoscopy, urology and neuromodulation. Abbott is known for its medical devices across cardiovascular, diagnostics and diabetes care. 

JNJ’s Price Performance, Valuation and EstimatesJ&J’s shares have outperformed the industry so far this year. The stock has risen 33.8% this year compared with 18.1% appreciation of the industry. 

Image Source: Zacks Investment Research

From a valuation standpoint, J&J is slightly expensive. Going by the price/earnings ratio, the company’s shares currently trade at 23.97 forward earnings, higher than 19.13 for the industry. The stock is also trading above its five-year mean of 15.66.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 earnings has declined from $11.54 to $11.12 over the past 30 days, while that for 2027 earnings has declined from $12.83 per share to $11.55 over the same time frame.

Image Source: Zacks Investment Research

J&J has a Zacks Rank #4 (Sell) at present.

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

Silver (XAG/USD) extends its decline on Friday, falling more than 5% and breaking below $50 to its lowest level since November 2025. The white metal is on track to lose around 18% in October, its steepest monthly decline since June, when it fell 22%.

Key Takeaways ExxonMobil's Q3'26 adjusted EPS reached $4.23, beating estimates by 8.5%, while net income rose 104.2% y/y.XOM's Energy Products segment generated $9.05B, benefiting from record refining margins and diesel yields.ExxonMobil generated $19.11 billion in free cash flow and returned $9.4 billion to shareholders in Q3 2026. ExxonMobil Holdings Corporation (XOM - Free Report) reported third-quarter 2026 adjusted earnings of $4.23 per share, beating the Zacks Consensus Estimate of $3.90 per share by 8.5%. The bottom line increased from the year-ago figure of $1.88 per share.

Revenues of $113.16 billion topped the consensus estimate of $103 billion by 9.9% and increased 32.7% year over year from $85.29 billion. GAAP earnings per share (EPS) rose to $3.72 from $1.76 in the year-ago quarter.

The strong results were primarily driven by record refining margins, operational efficiency and optimization activities. Higher profitability was supported by strong Energy Products performance despite disruptions in Middle East production. Upstream production totaled 4,496 thousand barrels of oil equivalent per day (Mboe/d).

XOM Benefits From Strong Refining PerformanceExxonMobil's Energy Products segment generated adjusted earnings of $9.05 billion in the third quarter of 2026. The segment benefited from exceptionally strong refining margins as global supply disruptions constrained the availability of gasoline, diesel and other refined products.

Refining capacity disruptions in Russia and the Middle East tightened product markets, supporting stronger margins. XOM's global refining network and optimization capabilities helped capture favorable market conditions. The company achieved record global diesel yields and North American diesel volumes during the first nine months of 2026.

Energy Products sales totaled 5,753 thousand barrels per day (Mbd) in third-quarter. Global refinery throughput reached 3,735 Mbd, supported by strong utilization across the company's refining network.

ExxonMobil's Upstream Operations Face HeadwindsXOM's Upstream segment reported adjusted earnings of $7.31 billion in the third quarter. Higher commodity prices supported earnings, while production disruptions in the Middle East and increased depreciation associated with advantaged investments weighed on performance.

The company continued benefiting from production growth in Guyana and the Permian Basin. Permian output remained above 1.8 MMboe/d, supported by technology-driven improvements in recovery and capital efficiency.

Middle East disruptions constrained production availability. The company reported regional production of approximately 550 Mboe/d, while shipping restrictions delayed recognition of certain sales and revenues in the UAE.

XOM Sees Support From Chemical & Specialty ProductsExxonMobil's Chemical Products segment generated adjusted earnings of $725 million during the quarter. Record operational reliability and North American feedstock advantages supported profitability, although weaker chemical margins presented challenges.

Chemical Products sales totaled 4,888 thousand metric tons. Strong operational execution and increased demand for high-value products in Asia Pacific supported the business despite elevated regional product availability and higher feedstock costs.

Specialty Products contributed adjusted earnings of $1.28 billion, supported by favorable basestock margins. Sales volumes totaled 1,737 thousand metric tons, while the company's focus on differentiated products and structural cost reductions supported profitability.

ExxonMobil's Expenses Rise Despite Efficiency GainsXOM's total costs and other deductions increased 23.6% to $91.93 billion from $74.36 billion. Crude oil and product purchases rose 37.1% to $65.72 billion, reflecting the higher cost of materials purchased during the quarter.

Production and manufacturing expenses increased 11.1% to $11.22 billion from $10.09 billion. Depreciation and depletion expenses rose 5.1% to $6.80 billion, reflecting the impact of the company's expanding asset base and investments.

Selling, general and administrative expenses declined 11.7% to $2.68 billion from $3.03 billion, providing some cost relief. ExxonMobil's cumulative structural cost savings have reached $16.9 billion since 2019, reflecting continued efforts to improve operational efficiency.

XOM Records Strong Year-Over-Year Profit GrowthExxonMobil's income before taxes increased 94.3% to $21.24 billion from $10.93 billion. The improvement reflected stronger revenue generation and favorable refining conditions, which more than offset increased operating expenses.

Income tax expenses rose 64.8% to $5.21 billion from $3.16 billion, reflecting higher taxable earnings. Despite the increased tax burden, net income attributable to ExxonMobil surged 104.2% to $15.41 billion from $7.55 billion in the year-ago quarter.

The company's overall profitability benefited from its integrated operating model, which helped capture stronger refining margins amid global supply constraints.

ExxonMobil Strengthens Quarterly Cash GenerationXOM generated $25.65 billion in operating cash flow during the third quarter, supported by strong earnings and operational performance. Free cash flow totaled $19.11 billion, reflecting cash generation after investments and other cash-flow adjustments.

The company returned $9.4 billion to shareholders, including $4.3 billion in dividends and $5.1 billion in share repurchases. Cash capital expenditures totaled $7 billion, reflecting continued investments in advantaged projects and long-term production capacity.

ExxonMobil Outlines Q4 & Full-Year 2026 OutlookExxonMobil expects full-year 2026 Permian production of approximately 1.8 MMboe/d. Its fifth Guyana production vessel is scheduled to begin operations late in the fourth quarter.

Middle East disruptions are expected to keep approximately 350 Mboe/d offline. Higher scheduled maintenance in Product Solutions could affect performance.

XOM expects full-year capital expenditures of $27-$29 billion and fourth-quarter corporate and financing expenses of $500-$700 million. The company plans $20 billion in share repurchases in 2027, subject to market conditions.

XOM’s Zacks Rank & Other Key PicksExxonMobil currently sports a Zacks Rank #1 (Strong Buy).

Some other top-ranked stocks from the energy sector are Range Resources Corporation (RRC - Free Report) , Equinor ASA (EQNR - Free Report) and Eni S.p.A. (E - Free Report) . EQNR and E sport a Zacks Rank #1 (Strong Buy) each, while RRC carries a Zacks Rank #2 (Buy), at present. You can see the complete list of today’s Zacks Rank #1 stocks here.

Range Resources reported third-quarter 2026 adjusted earnings of 81 cents per share, surpassing the Zacks Consensus Estimate of 70 cents per share.

As of Sept. 30, 2026, RRC had total debt of $780.92 million and cash and cash equivalents of $12,000.

Equinor reported third-quarter 2026 adjusted earnings of $1.20 per share, missing the Zacks Consensus Estimate of $1.38 per share.

As of Sept. 30, 2026, EQNR had cash and cash equivalents of $6.30 billion.

Eni reported third-quarter 2026 adjusted earnings of $2.13 per share, surpassing the Zacks Consensus Estimate of $1.92 per share.

As of Sept. 30, 2026, E had total debt of $34.39 billion and cash and cash equivalents of $11.77 billion.

GM just authorized $20 billion to buy back its own stock, but for a retiree with a quarter of their 401(k) tied up in a single automaker, that headline obscures a much more personal and costly calculation lurking in the…

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General Motors (NYSE:GM | GM Price Prediction) announced on October 20 that its board approved a new $20 billion multi-year share repurchase authorization with no expiration date. Investors shrugged. Shares sit near $81, essentially unchanged for 2026, even after rising about 17% over the past 12 months.

Picture a 62-year-old who has owned GM since the early 2010s. His $500,000 401(k) has a brokerage window that allows individual stocks, and $125,000 of it, or 25%, is GM. He plans to retire at 65. The buyback headline does little to shrink the risk in his retirement math.

What a $20 Billion Authorization Actually Promises Buybacks shrink the share count, so each remaining share claims more profit. GM’s shares outstanding fell to 849 million from 904 million at the end of 2025, which helped third-quarter adjusted EPS reach $3.70, beating the $3.63 consensus.

The $20 billion is permission to buy, with no schedule attached. CFO Paul Jacobson said “We don’t give any forward commentary on what we’re going to do on buybacks for obvious reasons,” and said repurchases continue “as long as the valuation remains depressed.” Management also noted roughly $2 billion in commodity, logistics and memory chip costs this year, plus EV restructuring payments running into 2027.

Higher EPS can still happen with a falling share price. GM closed at $82.75 on October 19, then fell to $77.09 on October 20, the day it reported earnings and announced the buyback.

A 20% Slide Costs $25,000 Either Way Run the rough math. If GM drops 20%, his position loses $25,000, and the account falls to $475,000 with everything else unchanged. No buyback authorization prevents that.

If he sets a 10% limit for any single stock, that means holding no more than $50,000 in GM, or $75,000 less than he owns today. At that weight, the same 20% drop would cost $10,000 instead of $25,000.

Withdrawals Carry the Tax Bill on 401(k) Money Selling GM inside a traditional 401(k) causes no capital gains tax. The bill arrives at withdrawal, taxed as ordinary income, and that is where the cascade starts. Large withdrawals can also make up to 85% of Social Security benefits taxable.

Medicare adds another potential cost. In 2026, the standard Part B premium is $202.90 a month. Married couples filing jointly with income above $218,000 enter the first surcharge tier, adding $81.20 for Part B and $14.50 for Part D per person each month.

If both spouses are enrolled in Parts B and D, that’s about $2,297 in additional annual premiums. Medicare generally looks back two tax years, and the thresholds will change before this investor reaches 65.

Concentration makes this worse. If GM falls when he needs cash from that position, he’ll have to sell more shares to raise the same amount. Born in 1964, he’ll generally face required minimum distributions (RMDs) at 75. Those withdrawals become mandatory, although he can choose which holdings to draw from, subject to his plan’s rules.

Three Moves Before Your Next Statement Measure your single-stock weight across every retirement account. Divide your GM value by your total balance. The amount above a 10% weight is $75,000, and any rebalancing inside the 401(k) causes no tax today. Compare that exposure with the diversified funds already on your plan menu, such as an S&P 500 index or target-date fund, then read your plan’s rules on brokerage window trading, blackout periods and fees before rebalancing. If your shares sit in your employer’s own company stock fund rather than a brokerage window, get tax advice before selling, since special rules for employer securities may apply. Map future withdrawals against Medicare’s income thresholds, which change over time. The years between retirement and RMDs can offer opportunities to withdraw or convert pretax money in measured amounts (we sized up that window in a free Roth conversion guide you can grab here). GM shares move to the Nasdaq on Nov. 17, and CEO Mary Barra expects next year to be “another strong year and better than 2026” if demand holds and costs ease. A buyback reflects management’s plan for GM’s cash, while position size in a retirement account reflects the owner’s own risk tolerance.

Contact [email protected] for any questions or corrections.

Verizon Communications (VZ +3.17%) once again demonstrated that its customer-focused strategy shift is working by reporting its Q3 results. However, investors remain wary of the wireless space, as Space Exploration Technologies (SPCX -3.89%) appears poised to enter the market.

With Verizon showing strong momentum but its stock down because of this potential threat, now could be a great time to buy this top telecom stock.

Image source: The Motley Fool.

SpaceX in focus
Verizon CEO Dan Schulman didn't try to dismiss SpaceX's efforts to enter the U.S. mobile market, instead saying he is going in under the assumption that the company will do everything it says it will and execute flawlessly.

However, Schulman said there are no shortcuts in building out a terrestrial network and that they will need 65,000 to 80,000 macro sites, backhaul, a combination of fiber and satellite, RAN (radio access network), and a whole lot of spectrum. He said this should take four to six years to fully build out and cost between $300 billion and $500 billion. Then SpaceX will need retail, customer service, and back-office systems. This will make SpaceX the sixth competitor in the marketplace.

Schulman added that Verizon has been winning in a competitive marketplace despite two competitors essentially offering free wireless services. He added that there are also no backdoor routes into an MVNO (mobile virtual network operator) agreement, and granting one to a satellite provider would provide no benefit.

Verizon's strength in Q3 was evident in another robust quarter of subscriber additions. It added 406,000 net postpaid phone subscriptions in Q3, an 820% year-over-year increase and its best Q3 performance in five years. It also added 137,000 net account additions, its best quarterly performance in a decade. Broadband customers, meanwhile, increased by 314,000.

VZ Verizon Communications$45.05+$1.39 (+3.17%)

NYSE · As of 11:57 AM ET 10/30/26

Even as its acquisitions rose, its acquisition cost fell 41% year over year, while retention costs declined by 30%. Postpaid churn, meanwhile, improved by 4 basis points to 94 basis points, and consumer postpaid churn fell 4 basis points to 87 basis points.

Overall revenue rose 1.5% year over year to $34.3 billion, but this was offset by a 9% decline in equipment revenue, as the company reduced spending on device subsidies. Service revenue climbed 3.5% to $29.2 billion.

Consumer revenue edged up by 1.3% year over year to $26.4 billion, with service revenue up 3.6%. The company's business unit was solid, with revenue climbing by 2.6% year over year to $7 billion. Overall adjusted earnings per share (EPS) jumped 8.3% to $1.31, while earnings before interest, taxes, depreciation, and amortization (EBITDA) climbed 8% to $13.8 billion.

Looking ahead, Verizon raised its outlook for postpaid phone subscribers, now expecting to end the year with between 1.1 million and 1.2 million additions. It also raised its adjusted EPS growth to 7% to 7.5%, up from a prior outlook of 6% to 7%.

Verizon also expanded its partnership with Amazon, signing a $2 billion infrastructure deal to provide AWS data centers with high-capacity fiber-optic connectivity. This followed a $1 billion agreement with Alphabet earlier this year.

Time to buy the stock?
Verizon is really hitting on all cylinders, adding new customers at a robust clip and signing its second large data center deal with a cloud computing company. Its customer-centric strategy is paying off, and it continues to have a big bundling opportunity following its acquisition of fiber-rich Frontier Communications.

VZ PE Ratio (Forward 1y) data by YCharts

With an over 6.5% dividend yield, an 11% free cash flow yield, and an 8-times forward P/E, Verizon stock has a nice secured payout, and the stock is cheap. While SpaceX potentially entering the market could remain an overhang, Verizon remains a top dividend stock to buy now on this recent pressure.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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