Track market-moving stories before they get noisy

Listen to the audio version of this article (generated by AI).

On a warm day in mid-July, some 80 scientists comprised of Nobel laureates and nuclear security experts gathered in a 10th-floor conference room at the University of Chicago. They were then asked to imagine their own deaths…

A presenter guided the group’s attention out of the window, past the gothic spires of campus, and traced which neighborhoods could vanish from differently sized nuclear blasts. The exercise, recently chronicled in Popular Mechanics, is part of the process behind one of the most recognizable symbols on Earth: the Doomsday Clock.

When artist Martyl Langsdorf drew it for the Bulletin of the Atomic Scientists’ first magazine cover in 1947, she set the hand at seven minutes to midnight for no scientific reason at all… the placement simply “suited my eye.” The hand has always been a judgment call.

This past January, the Bulletin’s board moved it to 85 seconds to midnight, the closest in its history, citing nuclear arsenals, climate, and the unchecked rise of unregulated artificial intelligence.

Wall Street, it turns out, keeps a clock of its own for AI. And every selloff like the one we just lived through is the crowd grabbing the hand and winding it backward… a collective verdict that the technology’s world-changing promise sits further out than feared, that the disruption is overstated, that midnight is receding.

The stakes of the two clocks differ by orders of magnitude, of course. The mechanism, though, is the same. On the latest episode of Being Exponential with Luke Lango, we read the machinery, and find it running faster than ever.

Watch the full episode here. Also, be sure to subscribe to Being Exponential on X (formerly Twitter) for more exclusive content:

What the Selloff Got Wrong Some blamed Broadcom Inc. (AVGO) for kicking it off. However, we are not buying that story. Broadcom delivered nearly 50% revenue growth, nearly 80% semiconductor revenue growth, more than 140% AI semiconductor revenue growth, and a $30 billion backlog… records across the board. As we say in the episode, there is no fundamental weakness in that report.

And the spending headlines keep stacking up. China is reportedly committing nearly $300 billion over five years to a national network of AI data centers. Nebius Group N.V. (NBIS) is investing 1.7 billion euros to build capacity in the U.K. Advanced Micro Devices Inc. (AMD) just announced plans to invest up to 2 billion pounds there over the same stretch. SK Telecom is planning a gigawatt-scale AI cloud in South Korea. OpenAI just raised $122 billion and filed for its IPO. SpaceX is set to raise roughly $75 billion in its own offering.

So what actually spooked the market? We look at three real risks: escalation with Iran sending oil above $110 to $120 and reigniting inflation, political shifts that shouldn’t matter until 2028, and the creeping sense that the market has gotten too euphoric. In the full episode, we walk through why each one, examined closely, looks far more manageable than the tape suggests.

The Toy Every Corporation Wants Then there’s the viral story that Uber (UBER) blew through its Anthropic token budget… held up in some corners as proof AI isn’t paying off. Our read flips that on its head: buy a kid a new toy, and of course he plays with it every waking hour until you set some limits. The limits don’t mean the toy was a mistake.

Companies are moving from token-maxing to token-budgeting – and a budget line item is precisely what institutionalization looks like. Read the conference calls, and company after company reports AI improving operations across software, hardware, and consumer businesses alike.

The $5 Trillion Floodgate The episode’s centerpiece is the wave of “kilicorn” IPOs – SpaceX near $1.75 trillion, OpenAI and Anthropic each tracking toward roughly $1.5 trillion. Call it $5 trillion in new market cap hitting public markets in a single year. Many investors read that as a top signal.

History reads it differently…

The giant IPOs of the dot-com era came in 1998 and 1999, and the smaller companies trickled through the gates afterward. The big bulls open the gates first. There’s also one development in particular that could supercharge one corner of this trade: reports that the White House is weighing direct stakes in frontier AI labs, which we interpret as an OpenAI story… and a bullish one for pre-IPO vehicles like SuRo Capital Corp. (SSSS).

Where does all that fresh IPO capital go? Straight back into compute… which means more networking, more memory, more chips, more cooling, more power.

The Jobs Report Mirage One last contrarian call. Last week’s strong jobs report – more than 170,000 added – revived claims that the AI labor apocalypse was overhyped. We walk through the Challenger, Gray & Christmas data telling a different story: nearly 100,000 job cuts in May, the largest May figure since 2020, with AI cited in roughly 40% of them. AI-driven cuts have already passed 88,000 this year – about 60% more than all of 2025, just five months in.

In the full episode, we lay out the specific accumulation zone we’re watching on the VanEck Semiconductor ETF (SMH), why we believe the Summer of AI resumes once the SpaceX IPO clears, and the one scenario that would actually change our minds.

Watch the latest episode of Being Exponential With Luke Lango here. And be sure to subscribe to Being Exponential on X (formerly Twitter) for more exclusive content.

HomeStock IdeasLong IdeasTech 

SummaryBroadcom is poised for an AI-driven inflection point in eFY27, underpinned by multi-year XPU agreements with major CSPs and AI developers.AI semiconductor and networking demand, alongside infrastructure software growth, supports durable operating margins despite near-term gross margin pressures.I reiterate a strong buy rating with a $665/share price target (26.82x eFY27 EV/aEBITDA), reflecting robust growth expectations and a recent share price pullback. Pali Rao/E+ via Getty Images

Broadcom (AVGO) is set to realize its AI semiconductor inflection point in eFY27 going forward as CSPs and AI developers leverage XPUs to build out AI training and inferencing capacity. With growing demand for

7.37K Followers

Analyst’s Disclosure: I/we have a beneficial long position in the shares of AVGO, META 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.

Broadcom’s NASDAQ: AVGO latest earnings report was a blow to highly bullish investors who bid up shares drastically going into the release. In the seven days leading up to Broadcom's report, shares gained more than 15%, pushing them to never-before-seen levels exceeding $475.

Broadcom Today

$382.07 -3.50 (-0.91%)

As of 04:00 PM Eastern

52-Week Range$244.17▼

$495.00Dividend Yield0.68%

P/E Ratio63.68

Price Target$490.13

In contrast, Broadcom shares are down about 20% since the report, having dropped as low as $375. This came despite Broadcom posting beats on sales and adjusted earnings per share (EPS) and providing total guidance that was better than expected.

Get Broadcom alerts:

However, artificial intelligence (AI) semiconductor sales guidance for Q3 fiscal 2026 (FY2026) and fiscal year 2027 (FY2027) fell short of very high expectations. (Note that Broadcom’s fiscal reporting period is slightly ahead of the standard reporting period used by many companies.)

Nonetheless, investors may be able to take solace in the fact that Broadcom’s report did little to deter the bullish sentiment among Wall Street analysts. In fact, analysts overwhelmingly moved their targets to the upside—a clear sign of confidence despite investor disappointment.

Analyst Price Targets Rise in Wake of Post-Earnings PlummetThe MarketBeat consensus price target on Broadcom sits near $490, a figure that implies solid upside of more than 20%. However, analysts by and large raised their price targets after the report. Overall, MarketBeat tracked just one analyst who lowered their target in response: Timothy Arcuri of UBS Group, whose target fell by just $5 to $485. In contrast, more than 10 analysts increased their target.

Broadcom Stock Forecast Today12-Month Stock Price Forecast:
$490.13
28.59% Upside

Moderate Buy
Based on 33 Analyst Ratings

Current Price$381.16High Forecast$582.00Average Forecast$490.13Low Forecast$375.00Broadcom Stock Forecast Details

Among all targets updated after Broadcom’s report, the average was around $515—considerably more optimistic than the consensus forecast. This updated average implies upside in the range of 30% and signals an expectation that shares could move well beyond past all-time highs.

Updated price targets on Broadcom do have a somewhat wide range; the lowest updated targets come from both DA Davidson and Royal Bank of Canada at $400. Despite this, both firms increased their targets, doing so by 6.7% and 11.1%, respectively. Meanwhile, Harlan Sur at JPMorgan Chase & Co. increased his target by 16%, moving the figure up to $580, the most bullish among post-earnings updates.

When it comes to ratings, analysts are also overwhelmingly showing confidence in Broadcom. The stock now retains zero Sell ratings, three Hold ratings, and a whopping 30 Buy ratings.

JPMorgan’s Question Hits Shares While Its Price Target SoarsNotably, Harlan Sur asked a key question on Broadcom’s earnings call, seeking to get the semiconductor company to raise its FY2027 AI outlook. Interestingly, though the answer contributed to Broadcom’s sell-off, Sur himself drastically increased his price target.

After two quarters in FY2026, Broadcom generated $19 billion in AI revenue and is guiding for $56 billion for the full year. This implies $37 billion over the two final quarters of FY2026. For FY2027, Broadcom is guiding for full-year AI semiconductor revenue of over $100 billion. Together, this brings the company’s 18-month AI revenue guidance to $137 billion—with the $37 billion portion in the second half of FY2026 firmly solidified.

The goal of Sur’s question was to get Broadcom to raise the FY2027 portion. Sur said, “Just given the strength of all your programs… is it fair to assume that your 18-month AI backlog second half of this year to first half through all of fiscal '27 sits at $200 billion or better?”

Here, Sur is asking Broadcom if its 18-month AI revenue backlog actually sits at $200 billion or higher. If Broadcom said yes, it would be implicitly adding $63 billion in backlog to its 18-month $137 billion guidance ($137 billion + $63 billion = $200 billion). Given that the $37 billion figure for the rest of FY2026 is firmly in place, the $63 billion addition would have to be allocated to FY2027.

Ultimately, Hock Tan did not agree to Sur’s framing, holding the company’s FY2027 AI outlook at over $100 billion. Still, Tan did note that Broadcom “will exceed very easily $100 billion in 2027." Overall, Sur’s attempt to get Broadcom to concretely raise its FY2027 outlook failed—contributing to investor disappointment and the stock’s big drop.

Sur and Other Analysts Walk Away Feeling More Confident in BroadcomThe answer to Sur’s question was a key reason why Broadcom shares sold off, as investors wanted the company to increase its AI guidance. While this clearly disappointed the market, Sur’s own reaction to Broadcom’s report showed anything but disappointment. Sur issued a huge price target increase and now has one of the highest targets of any analyst covering the stock.

That is something worth taking notice of—the analyst scrutinizing this name closely walked away with a much greater level of confidence. Furthermore, general price target moves clearly showed that Wall Street analysts became more bullish after the report. Overall, these factors point to a continuation of Broadcom’s positive outlook, despite post-earnings volatility.

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

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Broadcom wasn't on the list.

While Broadcom currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

Wondering what the next stocks will be that hit it big, with solid fundamentals? Click the link to see which stocks MarketBeat analysts could become the next blockbuster growth stocks.

Get This Free Report

© Justin Sullivan / Getty Images

Wall Street’s verdict on Broadcom (NASDAQ:AVGO | AVGO Price Prediction) is unambiguously bullish, with the analyst consensus price target now sitting above the stock’s own 52-week high after a brutal post-earnings selloff. The smart money signal is clear: sell-side desks have leaned harder into the name precisely as retail capitulated, and institutional positioning hasn’t blinked.

Broadcom stock currently trades near $376, after a sharp post-earnings drawdown from $495 at the time of its Q2 FY2026 earnings filing. The pullback came despite a record quarter and a guidance bar that implies 84% year-over-year revenue growth for Q3 FY2026.

That dislocation is the headline story. Analysts haven’t followed retail out the door, and the consensus number now looks like a monster target rather than a modest one.

The Analyst Signal Is Loud The Wall Street consensus price target on Broadcom stock stands at $522.06, a level that sits above the stock’s 52-week high of $495. The coverage book is heavily skewed bullish: 7 Strong Buy, 37 Buy, 4 Hold, zero Sell, and zero Strong Sell ratings, or roughly 92% bullish.

Institutional positioning corroborates that conviction. 80% of Broadcom’s float sits in institutional hands, and there’s no visible exit by the funds that actually move the tape. Mizuho’s recent ASIC channel-check note flagged a large TPU shipment ramp and a sizable revenue opportunity tied to the Google relationship and the Apollo and Blackstone AI partnership, an example of the bullish framework on the sell side.

Crowd sentiment tells the opposite story. Reddit chatter on AVGO stock has been neutral with low activity, and a Polymarket contract on Broadcom becoming the second-largest company by market cap on June 30 sits at just less than 1% implied probability. In other words, the professional bid and the retail bid have decoupled.

The Gap Between Wall Street and the Tape The arithmetic gap between the $522.06 consensus and Broadcom’s current handle widened sharply this month after AVGO stock fell 12% over the past month, even as fiscal year results came in ahead of estimates on every line. Broadcom’s Q2 FY2026 non-GAAP EPS landed at $2.44, AI semiconductor revenue hit $10.8 billion, and management guided Q3 AI revenue to $16 billion, up over 200% year over year.

The bear case is real and worth weighing, though. Broadcom trades at a P/E ratio of 66x trailing and a forward earnings multiple of 34x, gross margin is set to compress to 74% in Q3 as TPU mix scales, and the customer base is concentrated among a handful of hyperscalers. Broadcom CFO Kirsten Spears acknowledged on the call that “as the TPUs continue to accelerate, there will be pressure overall on gross margin.”

The bull case rests on visibility. Broadcom CEO Hock Tan reiterated guidance for fiscal 2027 AI semiconductor revenue in excess of $100 billion, with Q2 AI bookings of over $30 billion against $10.8 billion shipped. That kind of book-to-bill is what the consensus target is leaning on.

Is the Smart Money Right? The honest read is that Wall Street’s $522 price target for Broadcom stock is probably still too cheap. Broadcom’s record AI revenue, 200%-plus guided growth, and a $30 billion bookings number are hard to dismiss. The risks (valuation, margin mix, customer concentration) shouldn’t be overlooked, however.

Investors weighing AVGO stock today have a clean setup to evaluate against their own time horizon and risk tolerance. Moderate position sizing and a willingness to add on further weakness is the framework most consistent with what the consensus target, the institutional book, and Broadcom’s own guidance are saying together.

Semiconductor stocks were routed last Friday, June 5, with the sector losing a whopping $1.4 trillion in market cap in a single day. The PHLX Semiconductor Sector index shed more than 10% of its value in a single session, driven by a stronger-than-expected jobs report that has led to an increase in the odds of the Federal Reserve raising interest rates this year.

Not surprisingly, major semiconductor names took a big beating. Nvidia (NVDA +0.15%) was down by more than 6%, while foundry giant Taiwan Semiconductor Manufacturing (TSM +0.46%) slipped nearly 7%. Even Broadcom (AVGO 0.85%), which released a strong set of results on June 3, wasn't immune from the sell-off, falling nearly 8% on Friday.

It won't be surprising to see semiconductor stocks recovering from this pullback. The sector has played a key role in driving the stock market rally in recent weeks, and investors may have decided to book profits after pricing in the potential impact of a strong jobs report on the Fed's policy. However, investors will do well to note that the semiconductor sector's rally has been powered by strong revenue and earnings growth, driven primarily by artificial intelligence (AI)-fueled demand.

So, if you have $1,500 in investible cash right now (after paying your bills, clearing any high-interest loans, and saving for tough times), it may be a good idea to capitalize on the semiconductor sector's recent pullback by putting that money into the names discussed in this article, either individually or combined.

Let's take a closer look at some of the top chip stocks you can consider buying right away.

Image source: Nvidia.

Nvidia and Broadcom are no-brainer buys given their terrific potential Nvidia and Broadcom dominate the AI chip market in their respective niches. Nvidia sells graphics processing unit (GPU)-based chip systems, and Broadcom designs custom AI processors and networking components. Both kinds of chips are in solid demand due to their distinct advantages. While GPU-based systems are considered ideal for AI training, Broadcom's custom processors are being used for inference-focused tasks in AI data centers.

Today's Change

(

0.15

%) $

0.30

Current Price

$

205.18

Not surprisingly, both companies have been benefiting big time from the massive investments in AI data centers. Nvidia's revenue growth in Q1 of fiscal 2027 (for the three months ended April 26) accelerated to 85% year over year from 69% in the same quarter last year. Its top line landed at $81.6 billion last quarter, and the $91 billion estimate for the current quarter points toward a 95% year-over-year increase.

Nvidia's expansion beyond GPUs into the server processor market and its focus on emerging niches, such as physical AI and robotaxis, explain why the company's growth trajectory is improving despite the rising competition in AI chips. As a result, analysts have become bullish about Nvidia's earnings growth prospects.

Data by YCharts

The stock trades at just 31 times earnings, even though it is estimated to clock earnings growth of 88% this fiscal year. If Nvidia were to trade in line with the tech-focused Nasdaq Composite index's earnings multiple of 40 by the end of fiscal 2027 (which ends in January 2027), its stock could reach $358 (based on the fiscal 2027 earnings per share estimate of $8.96), a potential upside of 72%.

Similarly, Broadcom's growth rate is also picking up. The company is benefiting from lucrative contracts it has signed with multiple hyperscalers and AI companies. This explains why Broadcom's revenue in the second quarter of fiscal 2026 (which ended on May 3) increased by 48% year over year to $22.2 billion, better than the 20% growth it reported in the same period last year.

Broadcom's AI revenue rose by 143% year over year to $10.8 billion. What's more, it expects AI revenue to jump by more than 200% to $16 billion in the current quarter. Importantly, the company's AI revenue growth will continue to improve as it starts ramping up the sales of its AI chips to customers like Anthropic, Meta Platforms, OpenAI, and Google.

As a result, Broadcom sees its AI revenue landing at more than $100 billion in fiscal 2027, which would be a significant improvement over what it has been clocking so far this year. Analysts anticipate a 70% increase in Broadcom's earnings this year, followed by a 66% spike in fiscal 2027 to $19.32 per share. This makes Broadcom a solid buy at 34 times forward earnings.

Assuming its earnings per share indeed reach $19.32 in fiscal 2027, and it trades at 40 times earnings (in line with the Nasdaq Composite), the stock could jump to $772. That's nearly double where Broadcom stock is right now.

This AI kingpin can deliver outstanding gains TSMC is the world's largest semiconductor foundry. It manufactures chips designed by fabless chipmakers, such as Nvidia, Broadcom, AMD, Qualcomm, and others. What's worth noting is that TSMC's share of the global foundry market increased by five percentage points year over year in Q1 2026, rising to 73%, according to Counterpoint Research.

There's a massive gap between TSMC and second-placed Samsung in the foundry market, with Samsung holding just 7% share. As TSMC makes AI chips for multiple chip designers serving different industries, including smartphones, personal computers (PCs), and data centers, it is easy to see why it has been clocking impressive growth since the beginning of 2024.

Data by YCharts

The company's earnings per share stood at $10.65 in 2025. The following chart suggests that TSMC's earnings growth will remain robust over the next three years, with its bottom line poised to more than double during this period (from 2025 levels).

Data by YCharts

TSMC stock trades at 27 times forward earnings. This sets it up for solid upside over the next three years, as it has the potential to more than double if its earnings multiple aligns with the Nasdaq Composite by the end of 2028. So, this is another top AI stock you can consider buying after its recent slip, since it could go on a bull run given its bright prospects.

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

Broadcom’s good earnings.Playing the expectations game in a volatile market.Stocks doing well in downtrodden industries.Listener questions: How will the SpaceX, Anthropic, and OpenAI IPOs impact cash on the sidelines and ETFs?To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. When you're ready to invest, check out this top 10 list of stocks to buy.

A full transcript is below.

This podcast was recorded on June 4, 2026.

Tyler Crowe: We've got Broadcom stock whiplash today on Motley Fool Hidden Gems Investing. Welcome to Motley Fool Hidden Gems Investing. I'm your host, Tyler Crowe, and today I'm joined by longtime Fool contributors Lou Whiteman and Matt Frankel. Today, we were going to mix it up a little bit. We thought we're going to do a bunch of different segments and do some basically non-earnings takes because it's June. We don't normally get a lot of surprise earnings stuff, but then Broadcom had to go and give its earnings, and now its stock’s down, I think, almost 15% as we are taping today, as we're going to get into. I'll let you guys really digest the numbers here. But by all objective metrics, all the numbers looked good. The guidance looked fine. Is this really just expectations game, Lou?

Lou Whiteman: I think it is. Expectations are everything. It's glass half full of glass empty. Stock is up 15%, just heading into earnings. When you get that sort of expectations, any slight hiccup, any slight sneeze can set you back. This was a slight miss on revenue, but look, it's brutal when people are expecting enough. Apparently, it was enough to outweigh 140% gains in AI semiconductor sales, which I don't know, Tyler, sounds pretty OK to me.

Tyler Crowe: Matt, you were the task a little bit more with the nitty-gritty of the numbers here. What did you see in this that was like, maybe not great. I don't know. It's hard to look at these and say, Yeah, we should definitely be dropping the stock by 15% because that's just what we do these days.

Matt Frankel: It's not only Broadcom. CrowdStrike also reported. We're getting all the reports from companies that use weird fiscal years, and some of them haven't been too impressive. But there was a lot to like here, 48% revenue growth, they beat on the bottom line. As Lou said, 140% roughly growth in AI semiconductor revenue. Guidance was strong, but if you look into the guidance, the AI revenue that they're guiding for is not quite what the market expected, so that could be driving a little bit of the sell-off. Any slowdown in AI or perceived slowdown is enough to scare investors, and it's not just that it was running up 15% heading into earnings, Broadcom was up 90% over the past year. In a nutshell, this stock went into the report priced for a blowout quarter and blowout guidance. It was a good quarter. I wouldn't call this a blowout quarter, especially on the AI side of the business, not a blowout.

Tyler Crowe: We certainly did see a lot of blowouts this most recent quarter looking at a lot of these suppliers. Taiwan Semi, basically everyone was like, everything is awesome. With Broadcom's numbers looking pretty good. It was almost like comparing to everyone else. Is like, Well, they were that good. Can you do as well? This touches on a couple of top themes and topics we've discussed so far during this week. When the three of us were on the show on Tuesday, we were talking about how much does narrative play into your thesis? Narrative is also valuation-based. We were talking about this with Dollar General because, as a value play as a stock, you are betting on a return to median, return to average valuation.

Right now, we're all the narrative is defying expectations to justify very high valuations. At the same time, too, it touches on this idea of the start-stop whack-a-mole discussion about the AI build-out that, Lou, you, I, and Travis were talking about yesterday, where it seems like every couple of months here, we're talking about the next bottleneck. At first, it was is going to be chits. Then it became memory chips. Now we're talking about, the old companies like Dell that are just building off products, and we can name like 15 other suppliers where somewhere there's a stop-start going on here where somebody's doing awesome, but then, just because they didn't blow out earnings, they're going to have a 15% stock drop.

Lou Whiteman: Two points here, one macro, one micro, I guess. First of all, the macro, the narrative. I think you are so right and I think investors better be watching the narrative right now because there is a real indication that nothing is good enough. I look at what happened with Nvidia’s quarter. Look what the stock did there. Expectations are so out of this world right now that I don't know if any company, almost, can satisfy the market long term. For strong companies that can outlast the cycle, that's just an annoyance. But if you are in some of the, I guess, more speculative AI companies, I think this should be a warning sign to you that nothing is good enough, so look out below.

Specific to Broadcom, look, there are massive expectations still up ahead. CEO Hock Tan is forecasting $100 billion in annual AI chip revenue in fiscal ‘27. They're on pace to do about half of that this year, Tyler, and it took triple-digit gains to get to that 50 billion that they hope to do this year. I see that the stop-start nature of this, the questions about potential fragility, and it scares me. You add in the fact that OpenAI and Anthropic are going to account for a lot of that growth. Those are two very different companies right now. Even if OpenAI gets their act together and does well, you are putting a lot of eggs in just a couple of baskets with that customer concentration. I'm not predicting gloom. Broadcom is a good company, but right now, it's just hard to look at this and say, yes, everything's fine, everything goes up from here.

One other thing, software revenue, which is supposed to be recurring, to balance this out. That only grew by 9%. All of this growth is going to have to come based on their ability to keep selling hardware at really amazing levels. We'll see how long that lasts.

Matt Frankel: To Lou’s point, the expectations are huge here. You mentioned they're predicting about $100 billion of AI revenue in 2027. For about $40 billion of that, a little more is expected to come from Anthropic alone. OpenAI is a big client. The anthropic and OpenAI IPOs are really worth paying attention to. Anthropic just raised $65 billion. We've talked about this with other companies. I think Oracle was one of them where these commitments they're going to need to pay. They raised $65 billion. OpenAI raised $120 billion recently. That's not going to be enough for all of their commitments. These IPOs really need to go well, they need to get strong valuations. OpenAI and anthropic IPOs are probably the single most important near-term story for Broadcom investors to watch. The 2027 and 2028 growth story for the company, which the IPOs are going to directly support. It's largely intact for now, but that could change if demand cools off.

Tyler Crowe: We'll be getting into that in a later segment, but the amount of money that needs to be raised this year to make those commitments to Broadcom and all their other suppliers is looking pretty hefty and could have some pretty profound impacts on the market in general, beyond just those individual companies. But we're going to hit that after the break. But before that, we're going to actually take a pause from the AI discussion and just kind of look at some other sectors and some stocks that are really changing up the narrative of the sector that they're in. We'll hit that after the break.

[ADVERTISEMENT]

Tyler Crowe: I was reading an investing newsletter a couple of days ago, and there was a quote from the chief economist at Apollo talking about diversification and the importance of it. This was an interesting quote to me. It was factor investing tells investors not to be overexposed to just one factor. What he said was, the new 60/40 is now the AI versus non-AI thing. For those who aren't familiar, 60/40 was the benchmark gold standard for individual investors, people, probably not picking individual stocks. 60% of your money in stocks, 40% of your money in bonds, maybe you start changing that as you get older, but it was the standard benchmark that most wealth advisors told you to do to get diversification in the market.

As this quote is saying, it's not just the factor of bonds versus stocks, but it's also how much diversification do you have away from AI? In the spirit of that, we wanted to dedicate a whole segment to basically sectors and parts of the market that just aren't AI. Specifically, we've had a pretty bifurcated market so far. We've had some industries doing extremely well and others have been taking a bit on the chin. I think insurance, healthcare, biotech has done surprisingly not well. Well, energy, semiconductors, technologies absolutely fly. In that vein, what we played a little game with these guys. I each wanted you guys to pick one stock from an industry and find a stock that you find that is bucking the sector trend. Is there a company that's doing lousy in these awesome sectors or a company that's doing gangbusters in a downtrodden sector? I want to start with you, Matt. What's the sector in the stock that you're like, This is interesting.

Matt Frankel: Well, it's been a long time since I've gotten to talk about real estate because all we talk about is AI and SpaceX lately. I'm going to bring up.

Tyler Crowe: That's the whole point of this segment.

Matt Frankel: I'm going to bring up a real estate stock. Over the past three months, the S&P 500 as a whole has gained about 11%, mostly because of the mega‑cap tech stocks. Meanwhile, the real estate sector has been almost exactly flat. It was up 0.02% as I was looking this morning. There are some good reasons for it to be fair, specifically the fact that inflation is at its highest level in three years. There are legitimate concerns about the Fed raising rates. Real estate is a very rate-sensitive sector as a whole.

One that has really bucked the trend is Ryman Hospitality Properties. Ticker is RHP. It's up 18% in the past three months, even beating the S&P, not just the real estate sector. Hotel real estate is generally less rate-sensitive than other real estate subsectors. Unlike things like warehouses and retail properties which rely on long-term leases have predictable cash flow, hotels rent their space by the night and share prices; therefore are more governed by the business performance, which can really ebb and flow over time. Ryman's business has been impressive. In the first quarter, revenue and net income were at all-time highs for that time of year. The company raised its full-year guidance. Average daily rates for the hotel rooms and out-of-room spending were both up by double digits year over year. Their entertainment division is performing really well, especially that Old Red dining and entertainment brand just announced its seventh location. Its flagship Vegas location is dramatically outperforming expectations. Adjusted FFO, funds from operations, which is the real estate version of earnings, grew by 19% year over year. That's a rapid pace for real estate.

Tyler Crowe: Permit me a little bit of a follow up question here. When I think hospitality, too, though, I do think sensitivity to macroeconomic factors. When you look at Ryman, because it is a hospitality REIT, is this a specific REIT that has some call it macroeconomic macro vibes resiliency in it with its business model, or is it a little bit of ride the wave until it's no longer working?

Matt Frankel: That's a really good question because they're a group-focused hotel. The reason that that's important is that they focus on conferences, conventions, things like that, and these tend to book three,, four years in advance. They have a lot of future revenue visibility as opposed to an operator of a Hilton or a non-group focused hotel. They have some resilience, and you got to think of what they're being compared to in year over year. International travel was way down a year ago. That's coming back a little bit. Group events are a very resilient part of the hotel market. You bring up a really good point. I wouldn't really want to invest in a leisure hotel operator with macro uncertainty, but one that has that group-focused business, which is more than half of Ryman's business, it does have a little more visibility.

Tyler Crowe: Lou, I think we're not going to do anything real estate related to what you're looking at here.

Lou Whiteman: No, I will say, though, I'd rather own Ryman than stay at the Grand Old Opery. There's that for it. Look, I'm looking at the transports. I'm going to apply my gratists too, but it's been a pretty crummy few years for the transports. There were a lot of factors driving that. We were coming down from the sugar high of the pandemic where everything was shipped. ASAP. We've had the added uncertainty of tariffs, trade wars, and macro concerns, slowing economy. Big customers tend not to stock up on inventories if they're worried, the economy is slowing. It all has added up to underperformance, really crummy numbers. Nasdaq Transportation index has underperformed the market by 25 percentage points over the last three years.

In that environment, XPO, a trucking company, is up 340%. Easily beating both the transports and the broader market. Now some of that is good fortune. A big competitor, yellow, liquidated, XPO picked up a lot or a good bit of that business at literally prices that made it EB a positive just from Day 1. But it's also management deserves a lot of credit here. This is a story of simplification. Split out a couple of other units to just focus on one thing and being good at one thing. They shedded unrelated businesses that are fine on their own, but not part of the story. They also hired a ton of really, good people from competitors that quite frankly were doing better than them and they've started to shift their focus to margin over volume. This is, I think, sustainable. We've seen with Old Dominion, how a good operator over time can just outperform the sector and the market just based on the strength of their operations. I think XPO has elevated itself to that level.

Tyler Crowe: Similar follow up, and this is a discussion you and I, I think we had a couple of years ago too, where it felt like a time where trucking, especially was like, you've got Old Dominion XPO is up and coming, but you had a lot of subpar operators in this industry, so it was Old Dominion and to a lesser degree, XPO was taking candy from a baby taking market share here because they couldn't seem to get their hand out of the paste jar. It seems like that's less the case now. Obviously, Old Dominion XPO are dominant players here, but some of the other players in the industry found religion, I guess, you will, on March and on capacity additions at a reasonable rate. With that in mind, with the outperformers like XPO and Old Dominion that have done so well, now that they're facing more competent competition, is the growth opportunities as robust here or is it a little bit more of a knife fight for share?

Lou Whiteman A couple of things going on, I think. For one, until recently, XPO didn't deserve to be in that conversation as a good performer. What you've seen is them enter this. I think it's more of a risk for, say, an Old Dominion, which has benefited over the years for just being the only ones who could get pricing right. The other answer is scale. At the end of the day, you still have advantages to scale that you can be more efficient, even if it's the super friends, a couple of players that are really, better than anyone else, there's enough business out there. XPO is finally trading. At a multiple similar to Old Dominion, which you never saw a few years ago. I do think probably the 340% over three years, that we can't repeat that, that a lot of that was playing catch-up. But I think that, like I said, Old Dominion is the model. I think there is room for a few companies here that just outperform their peers and, over time, outperform the market.

Tyler Crowe: Trucking, as boring as it sounds, it's been a weirdly fascinating industry over the past I don't know, at least decade to follow. Interesting to see XPO, I can almost say getting down to fighting weight, I guess would be the best way to put it so they can compete. I'll give my answer here too, because one industry that's been quite lousy this year and so far, year to date, as well as over the past year or so has been insurance. Obviously there is reasons for that. Insurance is a cyclical industry, and a lot of the underperformers in the insurance industry in general have been a lot of high flyers, especially your specialty insurers and things like that. You're also seeing a lot of pricing pressure on the big lines of insurance that we see automotive and homeowners, some of the biggest a lot of these competitors are trying to take share and when you take share, profitability sinks and that tends to hurt stocks.

But health insurance in particular has been hit even harder. Rising costs are getting hard to control, plus lots of backlash from patients, and just in general, the feeling towards health insurers has been not great because high rates of denials, higher copays. It's the stuff that frustrate people using their health insurance. It's led to quite a bit of unpopularity. This is where there’s this one company that seems to be separating itself from the rest here, and obviously, it’s a small one, so it has that opportunity. It's called Oscar Health, ticker OSCR. They straddle this health insurance technology and health insurance broker business. Most of what it did was, when it got started in 2012, it was contingent on the American Healthcare Act or the Obamacare marketplaces. What it did was it set up programs where small business owners would let their employers buy individual insurance and using Oscar's platform, the employer would basically reimburse the individual for it, and that would allow them to meet their compliance for insuring their customers, while giving them — their employees, excuse me,— while giving them more options and actually was a way of relatively controlling costs because there were some subsidies related to using the marketplaces.

It kinda worked for a while, but when the marketplaces, ObamaCare marketplaces are doing well. But many insurers have left that program, and it’s been walking in the woods, trying to figure out what it wants to do next, and figure this out, and it’s starting to gain traction here. It's now more focused on providing individual insurance themselves, taking more of the underwriting burden, and so far, they've done a decent job. Their combined ratios are, have been varying. I think their health loss ratios were 70% in the most recent quarter, combined ratios 87, 88, which by insurance standards, is quite good. Any insurance, almost any line that you're looking at, below a 90% coverage loss ratio, which is basically how much you have to pay out in costs for healthcare or auto claims or anything like that, relative to the premium bring in. It's basically saying you have a 10% operating margin. Industry lingo. I know it's silly, but it works pretty well for an insurer.

Despite the fact that they've been winding down some big-name programs, they had a program with Cigna that didn't quite work out. They've been focusing more on the individuals. It seems to be working. I'm not saying they're out of the woods yet, and I'm not wholeheartedly going to pound the table to say, this is an awesome company now, but it's very interesting to see and obviously the stock is reflecting the fact that they are getting some traction with what they're doing. Coming up next, we're going to get into listener questions about all these massive IPOs coming to market.

Hey, just a reminder, we love answering your questions. If you do want your question answered on air, go ahead and email us at podcasts @fool.com. Three rules as always. No. 1, keep it Foolish, two keep it short enough for us to read, and three, we cannot give personalized advice, so let's try to keep it relatively generic.

As long as we've been taking questions, what we have seen more than anything else so far is questions about SpaceX, Anthropic and OpenAI IPOs, specifically to how they're going to impact the broader market. We're talking about early index inclusion for a lot of these companies because they're going in so big, and the questions have been numerous. But there's just two that are most representative of what we're talking about. This was from Ben Jackson. "With the recent changes to the Nasdaq index and immature over to value companies like SpaceX IPO with little supply — he's being a little diminutive here — but should your average ETF investor or index investor be reconsidering or selling their ETF portfolio to avoid the long-term turbulence that these large IPOs going into these ETFs may cause. This one is from Thomas Bianco. If we already know that approximately $4 trillion of new money will be sucked up in these three IPOs, basically, the combined market value, they think is going to be around $4 trillion for all three of them when they go public, How can we adjust our current equities positions to account for these forthcoming disruptions?

Now, I want to just give a little bit of context here because all the money we're going to be sucking up with these large ones. Right now, data from the Federal Reserve of St. Louis says that about $8.1 trillion is in money market funds as of fourth quarter of 2025. That sounds like a lot, but you also have to factor, how much is in the market in general. We have a thing at The Motley Fool. It’s called the PT potential growth indicator. Basically, it takes all the cash that's on the sidelines or in money market accounts, like the Fred data says and then divided by the total stock market valuation, which is at about 10.1%. Over the past 30 years, that is a little bit on the lower side. You could say that that's saying, everyone's pretty optimistic. They want to be in the market relative to what we see in other different times. With those little factoids, the amount of money that we're talking about here, guys, what do you have to say to Ben and Thomas' questions here?

Lou Whiteman: I think the first thing we should note is that the IPO headline number isn't the same as the money raised. SpaceX is looking for a $1.8 trillion IPO valuation, but it's only actually raising 75 billion. That said, 75 billion is a massive number for an IPO. I think the point is still relevant. The net impact, though, I'm not sure what I think. It might suck money away from other areas because again, we have a lot of demand here. $75 billion worth of money has to be found here. But over the next six months, billions of dollars in SpaceX stock is going to be unlocked and free to trade. These are people who got in before the IPO. If those insiders decide to sell, that could free up at least 75 billion, if not more for other opportunities that could impact other stocks in a positive way. That actually could be a positive impact in some ways, Tyler. Bottom line, though, is the only thing we know for certain is it's going to cause volatility. I personally am not going to reposition things or do anything in anticipation of this. I think that, yes, there could be volatility, but over time, I think this will balance itself out as a long term focused investor. I'm not going to lose sleep on this, I'm going to just make some popcorn and watch.

Matt Frankel: As Lou said, the money raised won't be in the trillions of dollars, but the latest forecast is for around 240 billion across those big three, SpaceX, Anthropic, and OpenAI. Just to put that in context, in 2025, the entire IPO market, all companies raised about $45 billion combined. The largest U.S. IPO previously raised about 22 billion. We are in uncharted territory. There’s plenty of money on the sidelines, as Tyler mentioned, the money market accounts, but the reality is that a lot of money flowing into these three IPOs is going to have to come from somewhere, and existing stock investments are probably going to be a big source. Specifically, I would think that most people are going to sell Magnificent 7 shares to invest in some of these. No one's going to sell their realty income stock to buy SpaceX is my point there. Tesla could be an interesting one to watch. A lot of Elon Musk fans could sell one Elon Musk stock to buy another.

But on the other hand, there is a case to be made that there's going to be a lot of new money flowing into the market this year, not just because of these IPOs. These IPOs are certainly increasing the overall interest in the stock market by retail investors. As we're recording this, I actually got a notification from my broker that the SpaceX IPO is available. A lot of people are taking notice. It's going to be an interesting year for sure. All three could create significant short-term volatility, but like Lou said, I'm not losing sleep over it. I think it's going to work itself out in the long term, and I'm not planning on buying any of these three on Day 1, at least.

Tyler Crowe: Feel like we're probably all going to get that SpaceX email from our brokers in the next week or so I want to just actually conclude with this, too, about ETFs and allocations and things like that. This is an important thing for people to consider when they're buying ETFs. Say you're buying a broad-based S&P 500 ETF, there are two different types. There are market cap-weighted ones, which is obviously the ones that are going to be most influenced here by the large amount of money going into them. But there's also equal-weight CAP or equal-weighted indices as well, where instead of doing market cap as, it's every single company at every equal weights. It's pretty self-explanatory. Ones like this are obviously going to probably see less volatility relative to these trades. If you are looking to get broad exposure to an entire market, but are perhaps more skittish, I guess you could say, of these mega-cap companies coming in and becoming a larger and larger portion of what's supposed to be a broad-based index. There are equal-weight index options out there that might be worth considering.

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

Broadcom earns a BUY rating due to its strategic evolution as a core AI infrastructure enabler, not just a semiconductor cycle play. AVGO's custom accelerators, high-speed networking, and XPV financing platform position it at the high-value end of AI capex trends, driving superior operating leverage. Recent FQ2 results showed strong AI semiconductor revenue growth and robust free cash flow, with management maintaining a >$100B AI revenue target for fiscal 2027.

The artificial intelligence (AI) infrastructure market is booming, with big tech companies set to spend around $725 billion on capital expenditures (capex) this year alone. To put that in perspective, that is more than the gross domestic product (GDP) of all but 22 countries in 2025.

While AI infrastructure stocks have performed well, I think two stocks that have generally been underappreciated during this boom have been Broadcom (AVGO 0.85%) and Taiwan Semiconductor Manufacturing (TSM +0.46%). Let's take a closer look at these two unsung AI stocks and why they look like buys.

Broadcom: An ASIC and networking leader

Today's Change

(

-0.85

%) $

-3.27

Current Price

$

382.30

As spending on AI chips ramps to extraordinary levels, hyperscalers (owners of large data centers) have been increasingly looking for ways to save on costs. One of the best ways to do this is to turn to custom chips called application-specific integrated circuits (ASICs). These are chips that are hardwired to handle specific tasks. Because they are sole-purpose chips, they tend to handle the tasks for which they were developed well, while also being more energy efficient. This is particularly ideal for AI inference, which is an ongoing cost.

One of the first companies to hop on the ASIC train was Alphabet, which, with the help of Broadcom, developed its tensor processing units (TPUs) more than a decade ago. Alphabet has long used these chips to power its internal workloads, but as AI exploded, it gave the company a huge cost advantage, as it used its chips to train its Gemini AI model and run inference. With Alphabet being one of the biggest AI data center spenders, Broadcom continues to reap the rewards of being Alphabet's co-developer partner.

Meanwhile, Broadcom added another revenue stream when Alphabet began letting a few select customers directly order TPUs from it, including a $21 billion order from Anthropic to be delivered this year. The three companies have also extended their partnership for future years and TPU iterations. At the same time, the success of TPUs has led to other hyperscalers working with Broadcom to develop their own custom chips. The company claims this will be a well-over $100 billion business in fiscal 2027.

Not to be overlooked, Broadcom is also a leader in data center networking and optical connectivity. Its Ethernet solutions are pivotal in the transfer of data, while it's also at the forefront of co-packaged optics (CPO). By combining optical and electronic components within the same package, CPOs can slash interconnect energy consumption by up to 65% compared to traditional pluggable optics. This business also ties directly into its ASIC business, as customers using its proprietary ASICs need its networking technology to link their chips together.

With Broadcom riding two powerful AI infrastructure trends, ASICs and next-gen optical components, the stock is a buy.

Image source: Getty Images.

Taiwan Semiconductor Manufacturing: The chip manufacturing king

Today's Change

(

0.46

%) $

1.94

Current Price

$

423.01

One of the unheralded stocks of the AI boom is Taiwan Semiconductor Manufacturing, or TSMC for short. While it was recently reported that Alphabet and Nvidia were considering using Intel as a backup chip manufacturer, TSMC still holds a virtual monopoly on the making of advanced logic chips.

At this time, TSMC is the only foundry that has proven it has the expertise to make advanced chips at small node sizes (a measure of chip density) at scale with high yields (few defects). This has made it an indispensable part of the semiconductor value chain and given it strong pricing power. The company is also working with its customers to aggressively expand its capacity to meet rising demand for chips.

With TSMC benefiting from the AI infrastructure boom and poised to be a winner no matter which chip technologies gain share, this is a stock you want to buy and hold for the long term.

3 Automakers to Buy on U.S.-Japan Trade Deal—Not Who You ExpectHonda Motor NYSE: HMC reported a full-year operating loss after booking large EV-related charges, while executives outlined a broad reset of the automaker’s electrification and automobile business strategy.

Director, President and Representative Executive Officer Toshihiro Mibe said Honda recorded total EV-related losses of JPY 1.5778 trillion for the fiscal year ended March 2026. The charges included provisions and impairment losses tied to EVs already sold in the U.S. and additional losses following the cancellation of North America-produced EV models.

Get Honda Motor alerts:

Power Play: Japan’s Top Auto Stocks Eye Historic MergerAs a result, Honda posted an operating loss of JPY 414.3 billion for the year. Excluding the EV-related losses that affected operating profit, Mibe said adjusted operating profit was JPY 1.0393 trillion. He said the motorcycle business delivered record unit sales and operating profit, while the automobile business remained profitable on an adjusted basis despite tariffs, lower unit sales and semiconductor-related supply constraints.

EV Losses Drive Full-Year Deficit Director, Executive Vice President and Representative Executive Officer Noriya Kaihara said Honda’s consolidated results included a net loss attributable to owners of the parent of JPY 423.9 billion, down JPY 1.2597 trillion from the previous year. Adjusted net profit attributable to owners of the parent was JPY 795.5 billion.

Shift Into Growth: Top 3 Hybrid Vehicle Makers to Invest InMotorcycle unit sales rose to 22.101 million units, supported by Asia and South America. Automobile unit sales fell to 3.387 million units, mainly due to weakness in Asia, including China. Power products unit sales declined to 3.589 million units.

By segment, Kaihara said motorcycle operating profit rose JPY 68.4 billion to a record JPY 731.9 billion. The automobile business recorded an operating loss of JPY 1.4111 trillion after JPY 1.4536 trillion in EV-related losses. Excluding those losses, automobile adjusted operating profit was JPY 42.5 billion. Financial services generated operating profit of JPY 275.5 billion, while power products and other businesses posted an operating loss of JPY 10.6 billion.

Honda reported free cash flow excluding financial services of JPY 1.58 trillion. Its operating companies had a net cash balance of JPY 3.3245 trillion at the end of March 2026, while operating cash flow after R&D adjustment totaled JPY 2.6579 trillion.

Fiscal 2027 Outlook Calls for Return to Operating Profit For the fiscal year ending March 2027, Honda forecast operating profit of JPY 500 billion, including an estimated JPY 500 billion in EV-related losses. Excluding those losses, adjusted operating profit is expected to be JPY 1 trillion. Profit attributable to owners of the parent is forecast at JPY 260 billion, or JPY 620 billion on an adjusted basis.

Honda expects motorcycle sales of 22.8 million units, automobile sales of 3.39 million units and power products sales of 3.65 million units. The company assumed an exchange rate of JPY 145 to the U.S. dollar.

The company plans an annual dividend of JPY 70 per share for the fiscal year ending March 2027, unchanged from the prior year. Mibe said Honda has maintained “ample cash at hand” and a high level of financial soundness, citing a 55% equity ratio for operating companies excluding financial services.

Honda Resets EV Strategy and Focuses on Hybrids Mibe said the cancellation of three North America EV models does not mean Honda is withdrawing from EVs. He said the company will continue EV sales in Japan and Asia where they match local demand and will monitor North American market conditions before launching additional products there.

However, Mibe said the company is withdrawing its previous target for EVs and fuel cell vehicles to account for 100% of sales by 2040. In response to a question from NHK’s Yasunaga, Mibe said that goal is “not realistic as of now” given market uncertainty and changing customer demand. Honda will instead focus on total CO2 reduction while maintaining its goal of carbon neutrality by 2050.

Honda will shift more development and production resources to hybrids. Mibe said the company plans to launch 15 next-generation hybrid models globally by the end of the fiscal year ending March 2030, primarily in North America. The next-generation hybrid system is expected to improve fuel economy by more than 10% and reduce system costs by more than 30% compared with 2023 models.

The company also plans to introduce next-generation advanced driver assistance systems beginning in 2028 and install them in more than 50 models over five years. Honda said it will make all of its North American auto plants capable of producing hybrid models and convert part of the EV battery lines at its LG Energy Solution joint venture to hybrid battery production.

Automobile Turnaround Plan Targets Record Profit Mibe said Honda’s automobile business faces challenges beyond the EV slowdown, including lower profitability in North America and weaker competitiveness in China and ASEAN markets. He said Honda will focus on improving cost structure, increasing development efficiency and concentrating resources in priority markets.

The company identified North America, Japan and India as priority regions. In Japan, Honda plans to expand EV offerings in the mini-vehicle category and add next-generation hybrid models, mostly SUVs, beginning in 2027. In India, Honda plans to introduce strategic models tailored to local customer needs starting in 2028, including vehicles under four meters and midsize models.

In China, Mibe said Honda will pursue cost reductions through locally sourced standard components, incorporate local technologies such as ADAS and introduce new energy vehicles using platforms from local partners.

Honda also plans what Mibe called “Triple Half,” a development-efficiency initiative aimed at cutting development cost, duration and workload by half compared with 2025 levels. The company aims to reduce minor model change development time by half starting this fiscal year and full model change development time by half for projects starting in 2028.

Honda said it is targeting operating profit above JPY 1.4 trillion by the fiscal year ending March 2029 and a 10% return on invested capital by the fiscal year ending March 2031. Over the next three years, the company plans total investment of JPY 6.2 trillion, including JPY 4.4 trillion for internal combustion engine and hybrid models, about JPY 1 trillion for software and about JPY 0.8 trillion for EV-related investment.

Management Addresses Losses and Governance Changes In the question-and-answer session, Mibe said he takes the large deficit “very seriously” as management. He said Honda decided to recognize the losses to stop future bleeding and return to a growth trajectory.

Honda also said it will further change its governance structure. Mibe said the board of directors will be composed of a majority of outside directors, the chair of the board will be an outside director, and all members of the nominating and compensation committees will be outside directors.

“The business environment surrounding Honda is uncertain, unprecedentedly uncertain and tough,” Mibe said. He said the company will focus on rebuilding its automotive business while relying on its motorcycle business and financial foundation to support future growth.

About Honda Motor NYSE: HMCHonda Motor Co, Ltd. is a global manufacturer and mobility company headquartered in Minato, Tokyo, Japan, founded in 1948 by Soichiro Honda and Takeo Fujisawa. The company's core businesses include the design, manufacture and sale of automobiles and motorcycles, along with a diverse portfolio of power products, engines and related components. Honda also operates in aviation through Honda Aircraft Company and offers financial services that support vehicle sales and leasing.

In automobiles, Honda is known for a range of passenger cars, crossovers and light trucks, and in motorcycles it is one of the world's leading producers by volume and model breadth.

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

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

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Honda Motor wasn't on the list.

While Honda Motor currently has a Reduce rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The AI boom is creating opportunities across semiconductors, cloud computing, enterprise software, infrastructure, cybersecurity, and automation.

Inside this report, you’ll find 10 companies positioned to benefit as artificial intelligence moves from hype to real-world deployment and becomes a core growth driver for corporate America.

Get This Free Report

Honda Motor Co., Ltd. (HMC) Q4 2026 Earnings Call Prepared Remarks Transcript

Shares of Honda Motor rose over 7% on Friday, even after the Japanese automaker posted its first annual operating loss in nearly 70 years.

Honda swung to an operating loss of 414.3 billion yen ($2.61 billion) for the fiscal year ending March, compared to an operating profit of 1.2 trillion yen the year prior. Provisions made for its ailing electric vehicle business and related investments, competition from its Chinese rivals, as well as a U.S. tariff impact of 346.9 billion yen weighed on its earnings.

"The business environment surrounding the Company has been changing rapidly, and the outlook remains uncertain," Honda said in its earnings statement on Thursday.

As part of its efforts to reorganize its EV business, the automaker said it will cancel market launches and development of some EV models initially planned for production in North America. The Japanese automaker said it expects the restructure of its EV business to cost over $9 billion.

Honda also noted that new EV makers have intensified competition in China. "Under such a challenging and competitive environment, the Company has also revised its product launch plans for certain EV models," Honda added.

"We believe the positive share price reaction is driven by the company's guidance for operating and net profit, both of which came in 38% above consensus estimates," said Masahiro Akita, an analyst from Bernstein.

However, Akita said it's uncertain as to whether the guidance has fully priced in possible losses linked to EV investments.

The automaker, being a late entrant to the EV market, has been facing challenges amid growing competition from Chinese rivals, inflation and U.S. tariffs.

Aya Adachi, an associate fellow at the Center for Geopolitics, Geoeconomics and Technology of the German Council on Foreign Relations, noted that global automotive competition is being gradually influenced by China's rapid growth in electric vehicle production.

"While pioneering hybrid technology, Japan's slow transition to battery electric vehicles left it with a limited presence in China's new energy vehicles market and exposed it to rising pressure in export markets," Adachi said.

Further, engine issues and vehicle recalls have also dented Honda's reputation. In March, Honda engines used by Aston Martin were found to be causing battery failures and in January the Japanese automaker was slapped with a lawsuit in Canada over a defect in the 1.5L turbocharged engine in three Honda models.

That said, both Citi and Nomura have kept a buy rating on Honda, expecting to see some future growth in the company.

"While we expect earnings to be low in 27/3, we think the time is right to price in a full-fledged recovery through 28/3 now that the company has announced revisions to its strategy," Nomura analyst Toshihide Kinoshita said in a note, referring to the company's estimated earnings for the years ending March 2027 and March 2028.

The Japanese automaker is shifting its focus more towards China and India markets from "a traditional global standard model," Citi analyst Arifumi Yoshida said in a note. Yoshida said that Honda plans to use its advantage in the motorcycle business to capture the demand from India's low cost segment.

Shares were last trading 7.42% higher at 1,418 yen.

Key Takeaways HMC posted a Q4 loss of $4.24 per share, topping estimates as revenues rose to $37.1 billion.Honda's motorcycle revenues rose 17.9% Y/Y, while operating profit increased 14.6%.HMC expects fiscal 2027 revenue growth of 6.2% but forecasts a sharp profit decline. Honda (HMC - Free Report) incurred a loss of $4.24 per share for the fourth quarter of fiscal 2026, beating the Zacks Consensus Estimate by 90.2%. The bottom line, however, fell from the year-ago quarter’s earnings of 18 cents per share. Quarterly revenues totaled $37.1 billion, which rose from the year-ago period’s figure of $35.2 billion.

Segmental HighlightsFor the three-month period, which ended on March 31, 2026, revenues from the Automobile segment increased 4.6% year over year to ¥3.73 trillion ($23.8 billion). The segment registered an operating loss of ¥1.25 trillion ($7.96 billion) compared with an operating loss of ¥158.7 billion in the corresponding quarter of fiscal 2025.

Revenues from the Motorcycle segment came in at around ¥1.09 trillion ($6.94 billion), which increased 17.9% year over year. The unit’s operating profit came in at ¥185.3 billion ($1.18 billion), up 14.6% year over year.

Revenues from the Financial Services segment totaled ¥975 billion ($6.21 billion), up 14.8% year over year. The unit’s operating profit totaled ¥57.5 billion ($366.4 million), down 18.6% year over year.

Revenues from Power Product and Other Businesses came in at ¥129.7 billion ($826.4 million), up 14.5% year over year. The segment reported operating income of ¥4.1 billion (26.1 million) against the operating loss of ¥68 billion incurred in the same period last year.

Financials & FY27 ViewConsolidated cash and cash equivalents were ¥4.53 trillion ($28.5 billion) as of March 31, 2026. Long-term debt was around ¥301.4 billion ($1.9 billion) as of  March 31, 2026.

Honda projects fiscal 2027 consolidated sales volumes from the Motorcycle, Automobile and Power Products segments to be 15.19 million units, 2.71 million units and 3.59 million units, respectively. The forecast implies growth of 3.5% year over year in the Motorcycles unit, while it implies a year-over-year rise of 4% and 1.7% for the Automobile and Power Product unit sales, respectively.

For fiscal 2027, Honda forecasts revenues of ¥23.15 trillion, implying a rise of 6.2% year over year. Operating profit is envisioned at ¥500 billion, indicating a contraction of 54.7% year over year. Pretax profit is forecasted to be ¥500 billion, suggesting a drop of 55.9% year over year. The company will pay an interim and year-end dividend of ¥35 per share each in fiscal 2027.

HMC currently has a Zacks Rank #5 (Strong Sell).

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

Key Releases From Auto SpaceMobileye Global Inc. (MBLY - Free Report) reported first-quarter 2026 results on April 23. It posted earnings of 12 cents per share, beating the Zacks Consensus Estimate of 8 cents by 58.52%. The bottom line rose 50% year over year, driven by higher shipments of EyeQ system-on-chip. The company posted revenues of $558 million, which beat the Zacks Consensus Estimate of $520 million by 7.36% and increased 27.4% year over year.

Operating cash flow was $75 million, reflecting the company’s ability to convert its ADAS scale into cash generation.

Mobileye also approved a share buyback program of up to $250 million. By the end of the first quarter, MBLY had $1.21 billion in cash, after spending $591 million (net of cash received) on the Mentee Robotics acquisition.

Gentex Corporation (GNTX - Free Report) reported first-quarter 2026 results on April 24. It posted adjusted earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 44 cents by 8.28%. The figure increased 11.6% from 43 cents a year ago. Net sales came in at $675 million, topping the consensus mark of $647 million by 4.36%. Revenues rose 17.1% from $577 million in the year-ago quarter, aided by contributions from VOXX and a richer mix of advanced features.

Liquidity improved during the quarter. As of March 31, 2026, GNTX’s cash and cash equivalents were $164.8 million compared with $145.6 million as of Dec. 31, 2025. Short-term investments increased to $10.3 million from $5.4 million.

PACCAR Inc. (PCAR - Free Report) reported first-quarter 2026 results on April 28. It reported earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.13 by 1.8%. The bottom line decreased 21.2% from $1.46 in the year-ago quarter. Consolidated revenues (including trucks and financial services) were $6.78 billion, down from $7.44 billion in the corresponding quarter of 2025. The decline reflected lower industry volumes.

On the balance sheet, cash and marketable securities were $8.60 billion as of March 31, 2026, compared with $9.25 billion as of Dec. 31, 2025, while stockholders’ equity increased to $19.76 billion from $19.26 billion over the same span.

For the first time in its history as a publicly traded company, Honda Motor (HMC 2.33%) posted a full-year loss. The Japanese automaker took a massive $10 billion hit to its electric vehicle business.

Excluding the EV segment, Honda is still profitable. Its executives were quick to point out this fact.

Today's Change

(

-2.33

%) $

-0.63

Current Price

$

26.44

Honda is now pivoting and plans to roll out 15 new hybrid models by early 2030. The company canceled several EV models and even walked back its climate pledge. Instead of reaching combustion-free status by 2040, Honda now aims to be carbon neutral by 2050.

While Honda is largely abandoning its EV plans, it still faces other hardships. Honda is discontinuing sales in South Korea, closing a plant in China, and delaying its autonomous-driving ambitions.

The good news is that Honda is disciplined and knows how to steer to get back on track. The Japan-based company is refocusing its efforts on its strengths in a leaner, more efficient manner. This strategy shift should be great for long-term investors.

Image source: Getty Images.

As for the stock, Honda hasn't done much to impress over the past five years. Shares are down more than 13% in that time frame.

Honda inventors should remain patient. This speed bump arguably marks the beginning of the company's turnaround. There's money to be made with hybrids. The hybrid car market could reach $457 billion by 2030, growing at a compound annual rate of 11%, according to Grand View Research.

Honda learned a tough lesson last year but is now moving in the right direction toward long-term success in a highly competitive automotive industry. Patience is key here for investors. The stock is reasonably priced, but the strategic pivot may need some time to take hold.

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

LOS ANGELES, May 28, 2026 (GLOBE NEWSWIRE) -- Curbee, the leading mobile service platform for automotive dealerships, today announced a landmark partnership with Paragon Honda, Paragon Acura and White Plains Honda, collectively the No. 1 Honda dealership operation in the United States. The group is the first Honda and Acura retail group in the United States to deploy Curbee’s platform.

Paragon and White Plains will use Curbee’s platform to deliver select dealership-certified mobile vehicle maintenance and repair services on demand to customers in driveways – rather than just in service lanes – across the Tri-State market.

The partnership reflects a broader shift underway in dealership fixed operations as progressive auto retailers look for ways to increase service capacity, improve customer retention and handle demand that is growing rapidly without the cost or hassle of expanding physical service facilities.

“The Paragon and White Plains brands understand that mobile service is not just a feature, it is a fundamental extension of the customer relationship,” Curbee CEO Amit Chandarana said. “We’re proud to be the platform that makes them mobile." 

Curbee reports that roughly 37% of dealership service work can be completed outside a traditional service bay by a mobile technician at the customer’s home or office. That is reshaping how forward-thinking operators think about service-lane capacity, retention and growth. 

For Paragon Honda, Paragon Acura and White Plains Honda, it also represents an opportunity to deliver the convenience customers increasingly expect. The group’s adoption of the Curbee platform further reinforces the group’s reputation for innovation and leadership in fixed operations, such as its leading e-commerce parts operation.

“We’re not interested in defending the old service model,” said Brian Benstock, Vice President and General Manager for Paragon Honda, Paragon Acura and White Plains Honda. “Customers expect convenience, speed, and flexibility, and we intend to lead the industry in delivering it. Curbee gives us the technology and operational foundation to scale mobile service the right way, while unlocking capacity across our stores.”

Mobile Service as a Capacity Strategy

The Paragon group has built its reputation by anticipating where customers are going — not where the industry has been. That same instinct drives its partnership with Curbee. 

According to Curbee’s The16 report, the average American driver passes 16 independent repair shops before reaching a franchised dealership, creating 16 opportunities to lose the service relationship. The antidote is not a better waiting room. It is meeting the customer where they are.

“The reality is undeniable,” Benstock said. “Thirty-seven percent of the work coming through a dealership service drive today can be performed directly in the customer’s driveway. Mobile service is not just a convenience play, it is a capacity strategy. We can move the right jobs out of the service lane, open our bays for more complex work, and deliver the kind of experience today’s owners expect.”

Paragon Honda has been recognized as the No. 1 Honda Certified Pre-Owned dealer in the world for 16 consecutive years, from 2008 through 2024. The group also holds multiple Honda and Acura President’s Award and President’s Award Elite distinctions. That track record of retail leadership informs how the group approaches mobile service: not as an experiment, but as an operational extension of a proven customer experience model.

Why Curbee

Curbee’s M.A.R.S. platform (Mobile and Remote Service) is purpose-built for franchised dealerships. The Paragon group selected Curbee for:

Intelligent appointment scheduling that accounts for job type, technician skill sets, parts availability, and live traffic to minimize drive time and maximize productivitySeamless DMS (dealership management system) integration that keeps mobile operations fully connected to the dealership’s existing workflowsAutomated customer communications that deliver a modern, transparent service experienceA proven track record of helping dealers launch, scale and build profitable mobile programsAI-powered scheduling and analytics that give dealerships real-time visibility into performance Curbee already powers mobile service for leading OEMs including General Motors, Stellantis and Volkswagen, and for dealership groups including Group 1 Automotive, Lithia & Driveway, Hendrick Automotive Group and Sonic Automotive.

“What the Paragon and White Plains group has built in fixed operations is extraordinary,” Curbee’s Chandarana said. “We’re proud to partner with them to deliver that same standard of excellence directly to their customers, wherever they are.” 

About Curbee

Curbee is the No. 1 mobile service platform. Curbee enables dealerships to offer mobile service with its platform called M.A.R.S. (Mobile and Remote Service). With M.A.R.S., it's simple: dealerships send the right van to the right job, using the right route with the right parts, at the right time.

The company’s street credit comes from in-market experience and best practices. With Curbee’s software, solutions and success team, dealers can scale mobile service quickly, delivering a game-changing customer experience while driving revenue growth. Curbee’s innovative technology supports AI-powered scheduling & analytics, ensuring dealers efficiently “go mobile.” Curbee’s team has highly relevant experience from Tesla, Toyota, Ford and Roadster and is backed by DVx Ventures, a venture studio with a unique approach to company creation and scaling. For more information, visit www.curbee.com.

About Paragon Honda, Paragon Acura, and White Plains Honda

Paragon Honda, Paragon Acura and White Plains Honda are the No. 1 Honda dealership operation in the United States, headquartered in Queens, New York. Paragon Honda has been recognized as the No. 1 Honda Certified Pre-Owned dealer in the world for 16 consecutive years and is a multiple-time recipient of Honda’s President’s Award Elite distinction. The group is led by Brian Benstock, VP and General Manager, and is known for pioneering a “Future Is Frictionless” approach to retail — centered on trust, transparency, and convenience — including a pickup-and-delivery program that has completed more than 200,000 transactions.

Media Contact
Katie Merx
[email protected]
(313) 510-5090

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/70a3215e-c151-4478-bd50-5ce1688fd6b5

Paragon Honda, Paragon Acura, and White Plains Honda partner with Curbee to launch mobile service ac... Leading New York dealership group becomes first Honda and Acura retailer in the U.S. to deploy Curbe...

Honda charitable giving totals over $15 million during annual funding cycle Funding supports 271 programs in five key CSR pillars: Education, Environment, Mobility, Traffic Safety and Community  Contributions build on a commitment by Honda to drive long-term sustainable impact in communities   , /PRNewswire/ -- From preparing students for careers in advanced manufacturing to addressing food insecurity, Honda and the Honda USA Foundation are supporting programs that empower the communities near Honda operations in the U.S. This funding cycle, Honda and the Honda USA Foundation provided more than $15.2 million to 271 nonprofit and school-led programs, expected to positively impact more than 45 million people.

Honda supports Rosie Explores Manufacturing, a nationwide STEM program that helps foster the future manufacturing workforce by providing hands-on experiences for elementary and middle school students. In 2026, Honda and the Honda USA Foundation are providing more than $15.2 million to 271 nonprofit and school-led programs, expected to positively impact more than 45 million people. "Honda and the Honda USA Foundation are committed to supporting programs that make people's lives better," said Marcos Frommer, department lead of Corporate Social Responsibility at American Honda Motor Co., Inc. "Whether it's helping families meet essential needs or expanding access to mobility, our funding contributes to initiatives that strengthen communities nationwide."

Honda corporate social responsibility (CSR) contributions are made to programs aligned with five strategic pillars: Education, Environment, Mobility, Traffic Safety and Community. The programs below highlight how this year's charitable giving is making a difference in communities across the U.S.

Education
To help solve tomorrow's challenges, Honda supports education programs that spark creativity and innovation in industry-relevant fields.

Guilford Technical Community College (GTCC) Aerospace Manufacturing Engineer Program in the Piedmont Triad region of North Carolina prepares students for roles in advanced aerospace manufacturing and production design. Funding from Honda will support equipment purchases and help secure additional faculty to welcome the program's first class of high school students. Rosie Explores Manufacturing is a nationwide STEM education program. Honda funding helps foster the future manufacturing workforce by introducing elementary and middle school students to hands-on experiences, equipping them to succeed in the AI-driven manufacturing environments of the future. Environment
Honda supports programs that help reduce and prevent carbon emissions, generate clean energy and conserve vital resources, such as water and electricity, improving the quality of life for communities nationwide.

The Circle East District initiative is revitalizing a distressed, historic neighborhood in East Cleveland through sustainable commercial and residential redevelopment, home repairs, infrastructure and streetscape improvements. With support from Honda, rooftop solar panels will be installed on five existing owner-occupied residences, helping ensure more equitable energy costs for new and existing residents. The Kingman Rangers job training initiative, in Washington, D.C., prepares out-of-work adults for entry-level jobs in the green sector while beautifying the Kingman and Heritage Islands, home to rare ecosystems, including tidal freshwater wetlands and tidal swamp forests. Funding from Honda will support ongoing preservation efforts and educate community members about the importance of environmental stewardship. Traffic Safety
Building on its "Safety for Everyone" approach, Honda supports programs that promote safe driving, biking and pedestrian practices, awareness and education.

The In One Instant Program equips teens with vital skills to stay safe as drivers, passengers, bicyclists, skaters and pedestrians. Support from Honda will help fund videos, learning guides and hands-on activities that educate young drivers about the consequences of distracted, reckless and impaired driving. The ThinkFirst for Safer Roads for Parents of Teen Drivers addresses a leading cause of traumatic injury and death among young people: motor vehicle crashes. Honda funding will support the development and expansion of evidence-based programming to reduce preventable injuries and save lives through education and sustained behavior change. Mobility
The Honda USA Foundation supports programs that remove barriers to mobility and expand access and opportunities for individuals with disabilities. Funding will support mobility modifications, therapeutic and adaptive services, and comprehensive care support services.

EmpowHer Camp in New York provides girls with disabilities ages 13-18 with the opportunity to experience adventure, independence and personal growth in an accessible wilderness environment. The Honda USA Foundation grant will support adaptive outdoor activities that build confidence and independence, as well as educational programming that teaches practical life and leadership skills, including public speaking, self-advocacy and teamwork. Guide Dogs for the Blind Orientation and Mobility Immersion (OMI) Program offers training in Orientation and Mobility (O&M) and daily living skills to those who are blind or visually impaired to improve their mobility and independence. Funding will support classes held by O&M specialists to ensure that those with little or no vision have the mobility skills they need to live fulfilling, independent lives. Community
Honda invests in community partners that provide umbrella food security and social services to address critical needs in the communities where Honda associates live and work.

Through its partnership with Feeding America®, Honda will support local partner food banks that aim to end food insecurity and make access to healthy food easier. Honda will partner with local United Ways to advance health, enhance financial stability, and address societal needs for local communities. The full list of organizations receiving funding is available here. Honda and the Honda USA Foundation open their annual programmatic funding cycle each fall, with funding decisions made the following spring. To learn more, visit https://csr.honda.com/funding.

About Honda Corporate Social Responsibility and the Honda USA Foundation
For more than 65 years in the U.S., Honda has been committed to making positive contributions to the communities where its associates live and work. The company's mission is to create products and services that help people fulfill their life's potential, while conducting business in a sustainable manner and fostering an inclusive workplace. Advancing its corporate social responsibility, Honda and the Honda USA Foundation support this direction through giving focused on education, the environment, mobility, traffic safety, and community.

Learn more at https://csr.honda.com/.

Notice: Although the information included in this press release is accurate as of the date of publication, this information is subject to change at any time without notice. American Honda Motor Co., Inc. assumes no responsibility for updating this information.

SOURCE American Honda Motor Co., Inc.

The 2017 Honda Ridgeline is unveiled at the North American International Auto Show in Detroit, January 11, 2016. REUTERS/Mark Blinch/File Photo Purchase Licensing Rights, opens new tab

CompaniesJune 10 (Reuters) - Honda Motor America (7267.T), opens new tab has ​recalled 880,514 vehicles in the ‌United States over the failure of rear suspension components in ​the vehicles, the National ​Highway Traffic Safety Administration (NHTSA) said ⁠on Wednesday.

The recall includes ​certain Honda Pilot, Ridgeline, Passport, ​Acura MDX vehicles, the NHTSA said.

Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here.

The vehicles can experience failure of rear ​suspension components, such as ​the rear control arm which could ‌lead ⁠to the loss handling and control, increasing the risk of a crash or injury.

As ​a remedy ​for ⁠the recall, dealers will inspect the rear ​subframe and install a ​rear ⁠subframe reinforcement kit and, as necessary, repair or replace ⁠the ​rear subframe components, ​free of charge.

Reporting by Gursimran Kaur in ​Bengaluru; Editing by Nivedita Bhattacharjee

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Honda is recalling more than 880,000 SUVs and pickup trucks in the U.S. because a key rear suspension part can rust and fail, increasing the risk of a crash.

The recall covers 880,514 vehicles, including certain 2016-2022 Honda Pilot, 2017-2023 Honda Ridgeline, 2019-2023 Honda Passport and 2014-2020 Acura MDX models, according to the National Highway Traffic Safety Administration (NHTSA). 

The issue involves the rear subframe, a structural component underneath the vehicle that helps support the rear suspension. In states where road salt is commonly used during winter, the rear subframe may corrode over time. 

The recall covers 880,514 vehicles. (Justin Sullivan/Getty Images)

"As the corrosion progresses, material thinning and driving vibrations could cause the mounting area to fracture and fail," NHTSA said.

MORE THAN 1 MILLION JEEP VEHICLES RECALLED OVER FIRE RISK AS OWNERS WARNED NOT TO PARK INSIDE

Drivers may notice abnormal noises or vibration from the rear suspension, as well as changes in vehicle handling while driving, the agency added.

The affected vehicles were sold in states including Connecticut, Illinois, Indiana, Iowa, Maine, Maryland, Massachusetts, Michigan, Minnesota, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, Vermont, Virginia, West Virginia, Wisconsin and Washington, D.C., among others, according to NHTSA.

KIA RECALLS 6K VEHICLES DUE TO POSSIBLE SEAT BELT DEFECT THAT COULD RAISE INJURY RISK

Ticker Security Last Change Change % HMC HONDA MOTOR CO. LTD. 26.44 -0.63 -2.33% Honda dealers will inspect the rear subframe and install a reinforcement kit. If necessary, they will also repair or replace rear subframe components at no cost to owners.

The automaker said it had received no reports of injuries or deaths in the U.S. related to the issue as of May 28.

Honda shares were down 1% in late afternoon trading and are down more than 10% year to date.

SUBARU RECALLS NEARLY 70,000 SUVS AFTER MOONROOF PANELS DETACH WHILE DRIVING

A view of a Honda Passport SUV in Walnut Creek, California, on Jan. 30, 2020.  (Smith Collection/Gado/Getty Images)

The recall comes after Honda announced last month that it was recalling nearly 99,000 vehicles in the U.S. over a separate defect that could cause airbags to deploy unexpectedly during a crash.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

FOX Business reached out to Honda for comment.

Over the last few months, SpaceX has been preparing for its long-awaited initial public offering (IPO). While institutional money managers and company insiders will receive the largest IPO allocations, retail investors are not entirely shut out of the listing.

Through select brokerages partnering with SpaceX's underwriters, everyday investors can request shares during the offering window. Successfully participating in the offering will depend on timing, eligibility, and a thorough understanding of how the IPO process works.

Image source: Getty Images.

How does the IPO process work? An IPO process starts once a company files an S-1 with the Securities and Exchange Commission (SEC). This document outlines a company's business model, financial profile, and underlying risks. Subsequently, the underwriters -- large investment banks -- conduct a roadshow to gauge demand from institutional buyers. This helps them determine an initial price range for the offering.

In the case of SpaceX, the lead underwriters are Goldman Sachs, Morgan Stanley, Bank of America, Citigroup, and JPMorgan Chase. SpaceX is set to list on the Nasdaq exchange under the symbol SPCX. Once the final IPO price is set (expected in early June), shares are allocated to participating firms and accredited investors. A small portion is often reserved for retail brokerages as well. The IPO is expected to take place on June 12.

Retail access to SpaceX shares will be available through certain brokerages that have been able to secure allocations from the underwriters.

Charles Schwab (SCHW +2.65%) is one of the major brokerage firms that has secured access to the SpaceX IPO. Clients can participate by visiting the IPO calendar on Schwab's website and submitting a conditional offer to purchase (COTP) during the open window. The COTP window is typically before 4 p.m. ET the day before pricing. Once the IPO price is finalized, investors must affirm their order by 7 a.m. the next morning. For the SpaceX IPO, investors must have a minimum account balance of $100,000 to participate.

Robinhood Markets (HOOD +1.04%) users follow a similar path through the app's IPO Access feature. Simply search for the SpaceX offering, confirm eligibility, and submit a request for the desired number of shares. Similarly, SoFi Technologies (SOFI 0.51%) users with an Active Investing account can submit a non-binding indication of interest (IOI) in the SoFi IPO Center, answer eligibility questions, and wait for a confirmation notification the day before the listing. Neither Robinhood nor SoFi requires a minimum balance to participate in the SpaceX IPO.

Today's Change

(

1.04

%) $

0.96

Current Price

$

93.19

Is investing in SpaceX risky? Smart investors need to understand that brokerages can't guarantee their orders will be filled. Allocations are limited, and high-demand offerings usually result in partial fills or sometimes none at all.

Beyond allocation uncertainty, investing in IPOs carries other risks. Newly public companies often experience extreme price swings. Valuation might become inflated by hype-driven narratives, despite the realities of SpaceX's financial profile reflecting a capital-intensive nature. Stocks may surge on their first day of trading only to give back these gains in the following months as lock-up periods expire and early investors cash out.

Broadly speaking, IPOs are speculative and best suited for investors who can stomach outsize volatility. If you are interested in gaining exposure to a SpaceX IPO allocation, it's important to treat the investment as a high-risk, high-reward position within a diversified portfolio rather than a core holding for now. By approaching the process with prudent diligence and realistic expectations, retail investors can participate in the SpaceX offering without overextending themselves.

Bank of America is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Charles Schwab is an advertising partner of Motley Fool Money. Adam Spatacco has positions in SoFi Technologies. The Motley Fool has positions in and recommends Goldman Sachs Group and JPMorgan Chase. The Motley Fool recommends Charles Schwab and Nasdaq and recommends the following options: short June 2026 $97.50 calls on Charles Schwab. The Motley Fool has a disclosure policy.

WESTLAKE, Texas--(BUSINESS WIRE)--Charles Schwab, a leader in investing and trading with $12.61 trillion in total client assets and 10.3 million daily average trades in April 2026, today announced the latest enhancements to the Charles Schwab trading experience across its trading platforms, including Schwab.com, Schwab Mobile, and the thinkorswim platform suite, continuing its ongoing commitment to introducing new features based on client feedback.

“A diverse range of clients seek out Schwab for the best-in-class trading experience we offer, from our award-winning platforms to our 24-hour specialized support and education,” said James Kostulias, Managing Director and Head of Trading Services, Charles Schwab. “As retail trading continues to advance, we’re committed to adding features and resources that expand our offering and make Schwab an even more compelling place to trade.”

New Features and Updates on Schwab’s Trading Platforms

Schwab has introduced the following enhancements and features on its trading platforms.

Now available on thinkorswim:

24/7 Cryptocurrency Futures Trading: Select cryptocurrency futures (Bitcoin, Ether, Solana and Ripple products) are now available to trade nearly 24 hours a day, seven days a week, on all thinkorswim platforms. Coming Soon: Specified Lots: Clients using thinkorswim desktop can now choose which tax lots are designated to be sold for each sell through the Order Rules section of the order ticket. Coming Soon: paperMoney® Enhancements: Clients using the desktop version of thinkorswim paperMoney (desktop only) can utilize a new Order Gadget to place trades and gain new pre-confirmation insight into: Individual pricing for each options leg; Maximum profit, maximum loss, breakeven, and estimated cost of the trade prior to confirmation; The full options chain, visible below the pricing information for the options. Now available on Schwab.com:

Expected Price Range: The Research page now includes expected price range information for marginable securities, allowing margin clients to better understand their risk and to manage their transactions and accounts accordingly. Fundamentals Columns: Clients can now see more fundamental data about their positions on the Positions page. Now available on Schwab Mobile:

Mobile Dividend Reinvestment: Clients can now adjust their dividend reinvestment enrollment settings for stocks, ETFs and Mutual Funds via the Schwab Mobile app Positions page. Collapsed Chains on Options Chains: The Options Chain screen now defaults to all expirations collapsed. Enhanced Fixed Income Positions – The Fixed Income Positions page now includes a description to Table View for Fixed Income Symbols. Order Status Quotes: A new customizable view expands default quotes data to include: Equities: Bid, Ask, Last Options: Bid, Mid, Ask Mutual Funds: Net Asset Value (NAV) Order Status for Walk Limit Orders: A new display summarizes the current status of the walk range. Fractional Shares Trading Made Easier

Across all platforms, Schwab has also expanded fractional trading capabilities to include most U.S. stocks and ETFs, with a new minimum investment of $1. Now, instead of accessing fractional shares trading via a separate experience, clients can select a dollar amount rather than number of shares right within Schwab’s trade ticket.

“Fractional shares trading lowers barriers to entry and gives clients greater simplicity and flexibility,” Kostulias added. “They can be a powerful tool for a wide range of investors, from those who may be priced out of higher-cost stocks to more seasoned traders who prefer to trade notionally, in dollar amounts rather than whole shares.”

More on fractional shares trading, including how to gift fractional shares to loved ones, can be found at www.schwab.com/fractionalshares. For more information about trading tools at Schwab, visit www.schwab.com/trading.

Disclosures

Investing involves risk, including loss of principal, and for some products and strategies, loss of more than your initial investment.

Equity and index options carry a high level of risk and are not suitable for all investors. Certain requirements must be met to trade options through Schwab. Please read the Options Disclosure Document titled "Characteristics and Risks of Standardized Options" before considering any option transaction.

Futures and futures options trading involves substantial risk and is not suitable for all investors. Please read the Risk Disclosure Statement for Futures and Options prior to trading futures products.

Futures accounts are not protected by the Securities Investor Protection Corporation (SIPC).

Read additional CFTC and NFA futures and forex public disclosures for Charles Schwab Futures and Forex LLC.

Futures and futures options trading services provided by Charles Schwab Futures and Forex LLC. Trading privileges subject to review and approval. Not all clients will qualify.

Charles Schwab Futures and Forex LLC is a CFTC-registered Futures Commission Merchant and NFA Forex Dealer Member.

Charles Schwab Futures and Forex LLC (NFA Member) and Charles Schwab & Co., Inc. (Member SIPC) are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation.

​Virtual Currency Derivatives trading involves unique and significant risks. Please read NFA Investor Advisory – Futures on Virtual Currencies Including Bitcoin and CFTC Customer Advisory: Understand the Risk of Virtual Currency Trading.

You should carefully consider whether trading in virtual currency derivatives is appropriate for you in light of your experience, objectives, financial resources, and other relevant circumstances.

Please note that virtual currency is a digital representation of value that functions as a medium of exchange, a unit of account, or a store of value, but it does not have legal tender status. Virtual currencies are sometimes exchanged for U.S. dollars or other currencies around the world, but they are not currently backed nor supported by any government or central bank. Their value is completely derived by market forces of supply and demand, and they are more volatile than traditional fiat currencies. Profits and losses related to this volatility are amplified in margined futures contracts.

System availability and response times are subject to market conditions and mobile connection limitations.

© 2026 Charles Schwab & Co., Inc. All rights reserved. Member SIPC.

About Charles Schwab

At Charles Schwab we believe in the power of investing to help individuals create a better tomorrow. We have a history of challenging the status quo in our industry, innovating in ways that benefit investors and the advisors and employers who serve them, and championing our clients’ goals with passion and integrity.

More information is available at www.aboutschwab.com. Follow us on X, Facebook, YouTube, and LinkedIn.

0626-RK7U

Shares of The Charles Schwab Corporation (SCHW - Free Report) have gained 0.3% over the past four weeks to close the last trading session at $88.84, but there could still be a solid upside left in the stock if short-term price targets of Wall Street analysts are any indication. Going by the price targets, the mean estimate of $114.95 indicates a potential upside of 29.4%.

The average comprises 20 short-term price targets ranging from a low of $84.00 to a high of $137.00, with a standard deviation of $11.46. While the lowest estimate indicates a decline of 5.5% from the current price level, the most optimistic estimate points to a 54.2% upside. More than the range, one should note the standard deviation here, as it helps understand the variability of the estimates. The smaller the standard deviation, the greater the agreement among analysts.

While the consensus price target is a much-coveted metric for investors, solely banking on this metric to make an investment decision may not be wise at all. That's because the ability and unbiasedness of analysts in setting price targets have long been questionable.

However, an impressive consensus price target is not the only factor that indicates a potential upside in SCHW. This view is strengthened by the agreement among analysts that the company will report better earnings than what they estimated earlier. Though a positive trend in earnings estimate revisions doesn't give any idea as to how much the stock could surge, it has proven effective in predicting an upside.

Price, Consensus and EPS Surprise

Here's What You Should Know About Analysts' Price TargetsAccording to researchers at several universities across the globe, a price target is one of many pieces of information about a stock that misleads investors far more often than it guides. In fact, empirical research shows that price targets set by several analysts, irrespective of the extent of agreement, rarely indicate where the price of a stock could actually be heading.

While Wall Street analysts have deep knowledge of a company's fundamentals and the sensitivity of its business to economic and industry issues, many of them tend to set overly optimistic price targets. Are you wondering why?

They usually do that to drum up interest in shares of companies that their firms either have existing business relationships with or are looking to be associated with. In other words, business incentives of firms covering a stock often result in inflated price targets set by analysts.

However, a tight clustering of price targets, which is represented by a low standard deviation, indicates that analysts have a high degree of agreement about the direction and magnitude of a stock's price movement. While that doesn't necessarily mean the stock will hit the average price target, it could be a good starting point for further research aimed at identifying the potential fundamental driving forces.

That said, while investors should not entirely ignore price targets, making an investment decision solely based on them could lead to disappointing ROI. So, price targets should always be treated with a high degree of skepticism.

Why SCHW Could Witness a Solid UpsideAnalysts' 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 to expect an upside in the stock. That's because empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

Over the last 30 days, the Zacks Consensus Estimate for the current year has increased 2.2%, as eight estimates have moved higher compared to no negative revision.

Moreover, SCHW currently has a Zacks Rank #2 (Buy), which means it is in the top 20% of more than 4,000 stocks that we rank based on four factors related to earnings estimates. Given an impressive externally-audited track record, this is a more conclusive indication of the stock's potential upside in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

Therefore, while the consensus price target may not be a reliable indicator of how much SCHW could gain, the direction of price movement it implies does appear to be a good guide.

Liz Ann Sonders, Charles Schwab, joins 'Closing Bell' to discuss what the latest market action means for equities, the impact of the SpaceX IPO and much more.

Schwab U.S. Small-Cap ETF (SCHA +1.16%) offers lower costs and broader diversification, while iShares Core S&P Small-Cap ETF (IJR +0.97%) provides a more concentrated portfolio with slightly lower historical volatility.

Small-cap stocks can offer significant growth potential but often experience greater price swings than their large-cap counterparts. This comparison compares two popular low-cost options that track different small-cap indexes to help investors determine which best fits their risk profile and diversification needs.

Snapshot (cost & size)MetricIJRSCHAIssueriSharesSchwabExpense ratio0.06%0.04%1-yr return (as of June 10, 2026)30.3%36.2%Dividend yield1.15%1.00%Beta1.141.26Assets under management (AUM)$103.6 billion$22.4 billionBeta measures price volatility relative to the S&P 500; beta is calculated from five-year monthly returns. The one-year return represents total return over the trailing 12 months. Dividend yield is the trailing 12-month distribution yield.

The Schwab fund is the more affordable option with an expense ratio of 0.04%, slightly lower than the 0.06% fee for the iShares fund. Regarding income, IJR offers a marginally higher payout of 1.15% compared to SCHA’s 1.00%.

Performance & risk comparisonMetricIJRSCHAMax drawdown (5 yr)(28.00%)(30.80%)Growth of $1,000 over five years (total return)$1,312$1,373What's insideThe Schwab U.S. Small-Cap ETF (SCHA) was launched in 2009 and tracks a much broader set of 1,706 holdings. Its sector exposure tilts toward technology at 23.00%, financial services at 16.00%, and industrials at 16.00%. Its largest positions include Sandisk at 4.98%, Lumentum at 1.33%, and Revolution Medicines at 0.63%. Over the trailing 12 months, it paid $0.34 per share in dividends.

In contrast, the iShares Core S&P Small-Cap ETF (IJR) was launched in 2000 and follows a narrower index of 641 stocks. Its sector distribution is more balanced, with financial services, industrials, and technology each representing 16.00% of the fund. Its top holdings include Sanmina (0.79%), Viavi Solutions (0.75%), and Semtech (0.75%). Over the same trailing 12-month period, it paid $1.60 per share in dividends.

For more guidance on ETF investing, check out the full guide at this link.

Which ETF is the better buy?Since late 2009, IJR and SCHA have delivered nearly identical annualized total returns of 12.6% and 12.3%, respectively. Not only are their total returns similar, but they both have uber-low expense ratios, comparable betas, and proximate dividend yields. However, there are a couple of reasons I might lean toward buying IJR over SCHA.

First, since IJR tracks an S&P Small Cap Index, the stocks it holds must meet a minimum level of profitability, whereas SCHA’s holdings do not. While the two ETFs’ returns have been largely similar over time, I just prefer the comfort of knowing IJR’s holdings are likely somewhat safer and more robust should we head into a recession or a similar pullback.

Second, since Sandisk has been a 39-bagger over just the last year, it has grown to become a somewhat uncomfortable 5% portion of SCHA’s holdings. While I’m all for letting stocks run as far as possible in my personal portfolio, that may not be the best approach for a small-cap ETF that’s supposed to be deeply diversified, and may not be suitable for certain investors.

Ultimately, I don’t think investors can go wrong with either of these ETFs, thanks to their low costs, steady returns, and exposure to a market niche most investors are probably chronically underinvested in. However, I’d lean ever-so-slightly to IJR for the two reasons mentioned.

-

WESTLAKE, Texas--(BUSINESS WIRE)--The Charles Schwab Corporation released its Monthly Activity Report today. Company highlights for the month of May 2026 include:

Core net new assets brought to the company increased 43% versus May 2025 to reach $49.9 billion – a record for the month of May. Total client assets equaled $13.14 trillion as of month-end May, up 27% from May 2025 and up 4% compared to April 2026. New brokerage accounts opened during the month totaled 461,000, an increase of 37% versus May 2025. Client margin loan balances were up 38% from year-end to $154.6 billion including $37.4 billion related to long/short strategies. Daily average trades reached a record 11.8 million, driven primarily by robust engagement in equities and exchange traded fund products. About Charles Schwab

The Charles Schwab Corporation (NYSE: SCHW) is a leading provider of financial services, with 39.5 million active brokerage accounts, 5.9 million workplace plan participant accounts, 2.3 million banking accounts, and $13.14 trillion in client assets as of May 31, 2026. Through its operating subsidiaries, the company provides a full range of wealth management, securities brokerage, banking, asset management, custody, and financial advisory services to individual investors and independent investment advisors. Its broker-dealer subsidiary, Charles Schwab & Co., Inc. (member SIPC, https://www.sipc.org), and its affiliates offer a complete range of investment services and products including an extensive selection of mutual funds; financial planning and investment advice; retirement plan and equity compensation plan services; referrals to independent, fee-based investment advisors; and custodial, operational and trading support for independent, fee-based investment advisors through Schwab Advisor Services™. Its primary banking subsidiary, Charles Schwab Bank, SSB (member FDIC and an Equal Housing Lender), provides banking and lending services and products. More information is available at https://www.aboutschwab.com.

The Charles Schwab Corporation Monthly Activity Report For May 2026   2025

2026

Change May

Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Mo. Yr. Number of Trading Days 21.0

20.0

21.5

21.0

21.0

23.0

18.5

21.5

20.0

19.0

22.0

21.0

20.0

Market Indices (at month end) Dow Jones Industrial Average® 42,270

44,095

44,131

45,545

46,398

47,563

47,716

48,063

48,892

48,978

46,342

49,652

51,032

3%

21%

Nasdaq Composite® 19,114

20,370

21,122

21,456

22,660

23,725

23,366

23,242

23,462

22,668

21,591

24,892

26,973

8%

41%

Standard & Poor’s® 500 5,912

6,205

6,339

6,460

6,688

6,840

6,849

6,846

6,939

6,879

6,529

7,209

7,580

5%

28%

Client Assets (in billions of dollars) Beginning Client Assets 9,892.2

10,349.0

10,757.3

10,963.5

11,228.1

11,593.9

11,828.0

11,834.3

11,903.0

12,148.5

12,220.3

11,767.9

12,605.3

Net New Assets (1) 33.6

38.9

45.7

43.3

45.4

41.6

38.7

77.9

27.6

32.5

79.8

6.7

49.9

N/M

49%

Net Market Gains (Losses) 423.2

369.4

160.5

221.3

320.4

192.5

(32.4

)

(9.2

)

217.9

39.3

(532.2

)

830.7

480.1

Total Client Assets (at month end) 10,349.0

10,757.3

10,963.5

11,228.1

11,593.9

11,828.0

11,834.3

11,903.0

12,148.5

12,220.3

11,767.9

12,605.3

13,135.3

4%

27%

Core Net New Assets (1,2) 35.0

42.6

46.9

44.4

46.2

44.4

40.4

79.1

27.8

32.5

79.7

7.2

49.9

N/M

43%

Receiving Ongoing Advisory Services (at month end) Investor Services 711.2

737.6

747.9

771.1

792.5

807.6

817.9

824.8

849.5

866.8

841.3

895.0

925.8

3%

30%

Advisor Services 4,525.6

4,687.4

4,765.1

4,888.2

5,016.7

5,106.1

5,155.9

5,195.5

5,311.7

5,394.3

5,201.5

5,525.7

5,716.0

3%

26%

Client Accounts (at month end, in thousands) Active Brokerage Accounts 37,375

37,476

37,658

37,798

37,963

38,145

38,266

38,506

38,730

38,925

39,099

39,300

39,536

1%

6%

Banking Accounts 2,077

2,096

2,116

2,137

2,150

2,172

2,189

2,214

2,239

2,258

2,281

2,305

2,329

1%

12%

Workplace Plan Participant Accounts (3) 5,563

5,586

5,619

5,606

5,619

5,696

5,730

5,740

5,793

5,829

5,844

5,864

5,886

-

6%

Client Activity New Brokerage Accounts (in thousands) 336

323

377

382

384

429

365

474

476

395

428

437

461

5%

37%

Client Daily Average Trades (DATs) (in thousands) 7,184

7,147

7,252

7,182

7,832

8,617

8,459

7,746

9,512

9,922

10,232

10,328

11,813

14%

64%

Derivative Trades as a Percentage of Total Trades 21.0

%

20.8

%

21.3

%

22.5

%

22.3

%

23.8

%

21.7

%

21.4

%

20.1

%

20.1

%

20.4

%

21.4

%

19.8

%

(160) bp

(120) bp

Margin Balances at month end (in billions of dollars) (4) 81.3

83.4

88.3

92.4

97.2

105.6

110.1

112.3

116.3

120.6

126.7

136.0

154.6

14%

90%

Schwab Trading Activity Index™ (STAX) (5) 39.7

40.7

41.8

43.7

46.1

48.1

48.8

48.5

50.0

57.3

56.0

50.1

55.1

10%

39%

Selected Balances (in billions of dollars) Average Interest-Earning Assets (6) 418.7

416.5

416.7

414.4

419.8

428.3

429.1

436.0

441.7

434.2

436.8

444.6

442.0

(1%)

6%

Transactional Sweep Cash (4,7) (at month end) 398.1

412.1

407.5

406.7

425.6

428.8

427.5

453.7

433.3

436.1

461.5

467.6

472.4

1%

19%

Total Money Market Funds (at month end) 645.8

653.9

658.6

665.2

667.0

675.5

685.9

694.5

693.4

696.2

702.2

688.1

694.6

1%

8%

Client Cash as a Percentage of Client Assets (8) 10.1

%

9.9

%

9.7

%

9.5

%

9.4

%

9.3

%

9.4

%

9.7

%

9.3

%

9.3

%

9.9

%

9.2

%

8.9

%

(30) bp

(120) bp

Net Buy (Sell) Activity (in billions of dollars) (9) Mutual Funds (3.2

)

(5.4

)

(3.4

)

(2.2

)

(4.8

)

(6.3

)

(7.3

)

(3.6

)

(0.9

)

(2.4

)

(8.5

)

(5.7

)

(7.4

)

Exchange-Traded Funds (ETFs) 21.9

19.4

25.8

23.0

25.6

28.1

24.9

39.8

34.8

37.4

25.3

27.4

34.2

(1)

Unless otherwise noted, differences between net new assets and core net new assets are net flows from off-platform Schwab Bank Retail CDs. (2)

Net new assets before significant one-time inflows or outflows, such as acquisitions/divestitures or extraordinary flows (generally greater than $25 billion) relating to a specific client, and activity from off-platform Schwab Bank Retail CDs. These flows may span multiple reporting periods. (3)

Includes accounts in Retirement Plan Services, Stock Plan Services, Designated Brokerage Services, and Retirement Business Services. Participants may be enrolled in services in more than one Workplace business. (4)

Balances include margin loans and short credits related to certain long/short strategies from which the Company earns a fixed net yield. For the month of May 2026, margin loans totaled $37.4 billion and short credits totaled $38.9 billion. (5)

For additional information regarding STAX, please visit: https://www.schwab.com/investment-research/stax/view-schwab-trading-activity-index. (6)

Represents average total interest-earning assets on the Company's balance sheet. Beginning in December 2025, average balances of client margin loans and short credits related to certain client long/short strategies from which the Company earns a fixed net yield are excluded from average interest-earning assets. Prior period amounts have been adjusted accordingly. (7)

Transactional sweep cash includes bank sweep deposits, and broker-dealer cash balances, other client cash held on the balance sheet (such as bank checking and savings deposits, short credits related to certain client long/short strategies, and broker-dealer non-interest-bearing credits), and bank deposit account balances; excludes proprietary and third-party CDs. (8)

Schwab One®, certain cash equivalents, bank deposits, third-party bank deposit accounts, and money market fund balances as a percentage of total client assets; client cash excludes brokered CDs issued by Charles Schwab Bank. (9)

Represents the principal value of client mutual fund and ETF transactions handled by Schwab, including transactions in proprietary funds. Includes institutional funds available only to investment managers. Excludes money market fund transactions. N/M - Not meaningful. Percentage changes greater than 200% are presented as not meaningful. More News From The Charles Schwab Corporation

Back to Newsroom

Connecting Excellence Group Plc (AQSE:XCE, OTCQB:XCELF), the AQSE-listed executive recruitment business that operates a Bitcoin treasury strategy, has appointed Carlos Benito-Garcia as chief performance and growth officer to accelerate the growth of its Spencer Riley operation.

Benito-Garcia brings more than 30 years of leadership experience spanning executive recruitment and the global pharmaceutical sector, including senior roles at GSK, Pfizer, AstraZeneca and IQVIA, where he led a 2,500-strong organisation.

His most recent decade has been spent in executive search, including a role helping scale a Leeds-based firm from inception to more than 70 consultants within three years, and an international leadership position at Antal International across a franchise network of more than 120 offices in 30 countries.

At Connecting Excellence Group, he will lead talent attraction, shape the group's acquisition strategy and oversee the development of new operating subsidiaries.

Chief executive Scott Ellam said Benito-Garcia brought "a powerful combination of deep commercial leadership, operational discipline, and a proven ability to scale recruitment businesses at pace."

Rio Tinto Ltd (LSE:RIO, ASX:RIO, OTC:RTNTF) shares rose 3.6% in early trading after the mining giant said its iron ore port operations in Western Australia had largely resumed following tropical cyclone Narelle.

The FTSE 100 company said three of its four Pilbara port terminals, including East Intercourse Island, had restarted ship loading on 28 March, with repairs underway at the fourth, Cape Lambert A, expected to be completed within days.

Port closures began on 24 March as the cyclone passed over the Pilbara, a remote coastal region in northwest Australia that is home to the world's largest iron ore export operations.

Combined with tropical cyclone Mitchell in February, recent weather events have disrupted around 8 million tonnes of shipments, of which Rio Tinto said it had identified a pathway to recover approximately half.

Despite the disruption, the company left its full-year Pilbara shipment guidance unchanged at 323 to 338 million tonnes.

Rio shares are down over 7% since the start of the Iran war at the end of last month, though off their worst. 

Last week, Rio Tinto told investors that a new A$2 billion funding partnership with the Queensland and Commonwealth governments will help secure the long-term future of the Boyne aluminium smelter in Gladstone, keeping the operation internationally competitive beyond its current power contract.