, /PRNewswire/ -- S&P Dow Jones Indices ("S&P DJI") conducted a consultation with market participants on potential changes to the S&P U.S. Indices Methodology and Dow Jones U.S. Total Stock Market Indices Methodology (collectively, the "Relevant Index Families") related to MegaCap companies.
The Index Committee appreciates the market engagement received in connection with this consultation and thanks all respondents for their feedback.
S&P DJI's Index Committee continually monitors market developments to ensure indices meet their stated objectives and considers methodology changes as needed to help ensure its indices continue to do so.
Market consultations are the primary mechanism through which the Index Committee engages with market participants and other stakeholders to seek feedback on whether methodology changes are necessary or appropriate, and to assess potential methodology developments. Consultations also provide an opportunity for any member of the public to submit input. This process is designed to preserve the independence of the Index Committee, effectively mitigate potential conflicts of interest, and help ensure transparency and fairness.
The Index Committee carefully reviews all consultation responses received. However, while all responses are reviewed and considered, the Index Committee is not bound by any comments or information submitted as part of the consultation.
S&P 500, S&P MidCap 400, and S&P SmallCap 600 Results:
Based on S&P DJI's Index Committee review of the markets and after consideration of responses received from a wide range of market participants, no changes will be made to the eligibility criteria including financial viability screens, seasoning period, or minimum IWF, for the S&P 500, S&P MidCap 400, or S&P SmallCap 600 as a result of the S&P Dow Jones Indices consultation on the treatment of MegaCap companies. Accordingly, there will be no changes to existing methodology for this index family.
S&P DJI determined that exceptions to the financial viability, seasoning, and IWF requirements should not be granted solely based on market capitalization. The decision not to adopt the proposed exceptions preserves core index principles by maintaining consistent application of these key requirements. Although there may be trade-offs between strict adherence to these eligibility requirements and broad representativeness, the current methodology provides substantial market coverage and sector balance. As a result, the indices can continue to meet their stated objectives while preserving their role as representative and investable benchmarks for the U.S. equity market.
The table below summarizes the consultation results.
Proposed
Methodology
Changes
Current
Result
IPO Seasoning
Period to be
reduced to six
months from 12
months
Initial public offerings should be traded on an
eligible exchange for at least 12 months before
being considered for addition to an index.
Spin-offs or in-specie distributions from existing
constituents are not required to have 12 months of
trading prior to their inclusion in the S&P
Composite 1500.
Companies that migrate from an ineligible
exchange, emerge from bankruptcy, are newly
designated to be domiciled in the U.S. for index
purposes by S&P Dow Jones Indices, or convert
from an ineligible share or organizational type to an
eligible type do not need to trade on an eligible
U.S. exchange for 12 months before being
considered for addition.
No Change
Investable
Weight Factor
(IWF) minimum
is waived for
MegaCap
companies
To be eligible for addition, a stock must have an
IWF of at least 0.10.
Companies passing the total company level market
capitalization criteria are also required to
have a security level float-adjusted market
capitalization (FMC) that is at least 50% of the
respective index's total company level minimum
market capitalization threshold.
No Change
Financial
Viability
exception for
MegaCap
companies
S&P Composite 1500. Generally Accepted
Accounting Principles (GAAP) net income from
continuing operations must be positive for:
o the most recent quarter, and
o the sum of the most recent four consecutive
quarters
Rule Exceptions. Exceptions to the above criteria
include:
• Migrations from one S&P Composite 1500 index
to another do not need to meet the financial
viability, liquidity, or 50% of the respective
index's total company level minimum market
capitalization threshold criteria.
• Companies that are spun-off from current S&P
Composite 1500 constituents do not need to
meet the outside addition criteria
• Non-S&P Composite 1500 companies that
acquire S&P Composite 1500 index
constituents, but do not fully meet all of the
eligibility criteria, may still be added to an S&P
Composite 1500 index at the discretion of the
Index Committee if the merger consideration
includes the acquiring company issuing stock to
target company shareholders, and the
Committee determines that the addition could
mitigate turnover and enhance the
representativeness of the index as a market
benchmark.
No Change
S&P Total Market Index (TMI), S&P Completion Index (CI), and Dow Jones U.S. Total Stock Market Index (TSM)
The S&P Total Market Index (TMI), S&P Completion Index (CI), and Dow Jones U.S. Total Stock Market Index (TSM) are broad market indices intended to represent the investment universe. The following changes will be applied.
Proposed
Methodology
Changes
Current
Result
MegaCap
Classification
--
--
Investable Weight
Factor (IWF) –
S&P Total Market
Index
To be eligible for addition, a stock must have an
IWF of at least 0.10. Current constituents have no
minimum requirement.
To be eligible for addition, a stock must have
either:
• IWF of at least 0.10, or
• Float-adjusted market capitalization
greater than or equal to 10% of the
total company level market
capitalization of the 100th largest
company in the S&P Total Market
Index, ranked by total market
capitalization as of the reference
date.
Current constituents have no minimum
requirement.
Investable Weight
Factor (IWF) –
Dow Jones U.S.
Total Stock Market
Index
To be eligible for addition, a stock must have an
IWF of at least 0.10. Current constituents have no
minimum requirement.
To be eligible for addition, a stock must have
either:
• IWF of at least 0.10, or
• Float-adjusted market capitalization
greater than or equal to 10% of the
total company level market
capitalization of the 100th largest
company in the Dow Jones U.S. Total
Stock Market Index, ranked by total
market capitalization as of the
reference date.
Current constituents have no minimum
requirement.
An IPO that meets the requirements of the updated Investable Weight Factor (IWF) eligibility rule is eligible for fast-track entry, provided the company meets all other applicable fast-track criteria as well. Fast-track assessment is made using the closing price on the first day of trading on an eligible exchange. Once S&P Dow Jones Indices announces that an IPO is eligible for fast-track addition, it is added to the index with five business days' lead time. For more information on IPO fast track entry, see the relevant index methodology.
Float Release after the end of IPO Lock-Up Period
Consultation respondents generally supported implementing float increases following the release of lock-up shares gradually, or in tranches where appropriate, depending on company-specific circumstances.
S&P DJI applies the published methodology as the default approach. In accordance with the Index Committee's governance framework, the Index Committee may, in certain circumstances, exercise discretion in the implementation of float increases after the end of the IPO lock-up period to reduce market impact, support replicability, and promote orderly implementation, taking into account company-specific facts, such as size of the index event and timelines.
Any such decision will be communicated in advance where possible.
IMPACTED INDICES
Index Name
Index Code
S&P Total Market Index (TMI)
SPTMI
S&P Completion Index (CI)
SPCMI
Dow Jones U.S. Total Stock Market Index
DWCF
Please note that if a company is included within the above indices, such company may become eligible for derived indices that use the above index as a starting universe. For example, the derived indices include, but are not limited to, size, sector, style, factor, and sustainability indices derived from the impacted indices. Please refer to the individual index methodologies for more information on eligibility and timing.
IMPLEMENTATION TIMING
S&P DJI is implementing the above described methodology changes to the S&P Total Market Index (TMI), S&P Completion Index (CI), and Dow Jones U.S. Total Stock Market Index (TSM) effective prior to the market open on Monday, June 8, 2026.
For more information about S&P Dow Jones Indices, please visit www.spglobal.com/spdji.
ABOUT S&P DOW JONES INDICES
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.
S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies and governments to make decisions with confidence. For more information, visit www.spglobal.com/spdji.
SummaryCompaniesSpaceX is world's biggest-ever IPO, targeting $1.75 trillion valuationS&P 500 inclusion requires company to be profitable, among other rulesSpaceX posted $4.94 billion loss in 2025June 4 (Reuters) - S&P Global (SPGI.N), opens new tab said on Thursday it was not changing the requirements for entry into its major indices, dealing a setback to Elon Musk's SpaceX by effectively ruling out a swift entry for the world's biggest-ever IPO into the benchmark S&P 500 index (.SPX), opens new tab.
Musk has rewritten the IPO playbook for SpaceX in many ways from planning to give retail investors a bigger role in allocations to pushing for early index inclusion, and structuring governance to preserve strong founder control.
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The company is raising $75 billion and targeting a $1.75 trillion valuation that would place it among the top 10 most valuable U.S.-listed firms, even as only a fraction of its shares are available for trading.
But S&P said "exceptions to the financial viability, seasoning, and IWF (investable weight factor) requirements should not be granted solely based on market capitalization".
To be included in the S&P 500, a company must be profitable under Generally Accepted Accounting Principles in its most recent quarter as well as for the sum of its most recent four quarters, according to one of the rules S&P left unchanged.
SpaceX posted a net loss of $4.94 billion in 2025, even as revenue rose 33% to $18.67 billion.
INVESTOR CONSULTATIONSS&P had consulted with investors about shortening the time a megacap company must be publicly listed before joining its indexes, waiving minimum float requirements and removing its profitability requirement.
Item 1 of 2 A 3D-printed miniature model of Elon Musk and a SpaceX logo are seen in this illustration created on January 23, 2025. REUTERS/Dado Ruvic/Illustration/File Photo
[1/2]A 3D-printed miniature model of Elon Musk and a SpaceX logo are seen in this illustration created on January 23, 2025. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab
The S&P 500 is Wall Street's most widely followed benchmark. Passive S&P 500 index funds with trillions of dollars in assets would have been forced to buy up SpaceX shares had rules been changed to admit it to the index.
"It speaks highly of the credibility of S&P Dow Jones Indices to be rules-based and make sure there's profitability before entrance to the index," said Art Hogan, chief market strategist at B. Riley Wealth.
"Making exceptions because companies are so large and have been private so long yet are still not profitable, didn't make a great deal of sense."
Nasdaq has already made changes that will make it easier for SpaceX, Anthropic and other newly listed megacaps to join its Nasdaq 100 (.NDX), opens new tab index.
Nasdaq 100 index funds will be forced to buy a sizeable portion of publicly available SpaceX shares when the company joins that index.
Exchange operators have ramped up efforts to boost initial public listings as richly valued technology firms such as SpaceX and AI giants Anthropic and OpenAI edge closer to public offerings, amid growing concerns over a steady decline in the number of U.S.-listed companies.
S&P Global said it would modify entry rules for its broader S&P Total Market Index and Dow Jones U.S. Total Stock Market Index, creating a pathway for SpaceX to join those less widely followed indexes.
SpaceX has also already become eligible for inclusion in both the Russell U.S. Equity Indexes and the FTSE Global Equity Index Series under the newly announced fast-entry rules from the index provider FTSE Russell.
Reporting by Noel Randewich in San Francisco and Pritam Biswas and Shivansh Tiwary in Bengaluru; Editing by Arun Koyyur and Jamie Freed
Our Standards: The Thomson Reuters Trust Principles., opens new tab
San Francisco correspondent covering the stock market with a focus on Big Tech, semiconductors and other Silicon Valley companies
, /PRNewswire/ -- Mark Grant, Senior Vice President of Investor Relations and Treasurer of S&P Global (NYSE: SPGI), will participate in the Mizuho Technology Conference 2026 on June 10, 2026 in New York, New York. Mr. Grant is scheduled to speak from 10:30 a.m. to 11:05 a.m. (Eastern Daylight Time). The "fireside chat" will be webcast and may include forward-looking information. Heather Balsky, Senior Director of Investor Relations will join for investor meetings.
Webcast Instructions: Live and Replay
The webcast (audio-only) will be available live and in replay through the Company's Investor Relations website http://investor.spglobal.com/Investor-Presentations. The webcast replay will be available about 12 hours after the end of the presentation and will remain accessible for 90 days, ending on September 7, 2026. Any additional information presented during the session will be made available on the Company's Investor Presentations web page.
About S&P Global
S&P Global (NYSE: SPGI) enables businesses, governments, and individuals with trusted data, expertise and technology to make decisions with conviction. We are Advancing Essential Intelligence through world-leading benchmarks, data, and insights that customers need in order to plan confidently, act decisively, and thrive in a rapidly changing global landscape.
From helping our customers assess new investments across the capital and commodities markets to navigating the energy expansion, acceleration of artificial intelligence, and evolution of public and private markets, we enable the world's leading organizations to unlock opportunities, solve challenges, and plan for tomorrow — today. Learn more at www.spglobal.com.
Investor Relations: http://investor.spglobal.com
Contact:
Investor Relations:
Mark Grant
Senior Vice President, Investor Relations and Treasurer
Tel: +1 (347) 640-1521
[email protected]
, /PRNewswire/ -- S&P Dow Jones Indices will make the following changes to the S&P 500, S&P MidCap 400, and S&P SmallCap 600 indices effective prior to the open of trading on Monday, June 22, 2026, to coincide with the quarterly rebalance. The changes ensure that each index is more representative of its market capitalization range. The companies being removed from S&P MidCap 400 and S&P SmallCap 600 are no longer representative of the mid-cap and small-cap market space, respectively.
Following is a summary of the changes that will take place prior to the open of trading on the effective date:
Effective Date
Index Name
Action
Company Name
Ticker
GICS Sector
June 22, 2026
S&P 500
Addition
Marvell Technology
MRVL
Information Technology
June 22, 2026
S&P 500
Deletion
Pool Corp
POOL
Consumer Discretionary
June 22, 2026
S&P 500
Addition
Flex
FLEX
Information Technology
June 22, 2026
S&P 500
Deletion
The Campbell's Company
CPB
Consumer Staples
June 22, 2026
S&P MidCap 400
Addition
Roku
ROKU
Communication Services
June 22, 2026
S&P MidCap 400
Deletion
Flex
FLEX
Information Technology
June 22, 2026
S&P MidCap 400
Addition
Coeur Mining
CDE
Materials
June 22, 2026
S&P MidCap 400
Deletion
BellRing Brands
BRBR
Consumer Staples
June 22, 2026
S&P MidCap 400
Addition
Semtech
SMTC
Information Technology
June 22, 2026
S&P MidCap 400
Deletion
Coty
COTY
Consumer Staples
June 22, 2026
S&P MidCap 400
Addition
Sanmina
SANM
Information Technology
June 22, 2026
S&P MidCap 400
Deletion
Concentrix
CNXC
Industrials
June 22, 2026
S&P MidCap 400
Addition
Viavi Solutions
VIAV
Information Technology
June 22, 2026
S&P MidCap 400
Deletion
Blackbaud
BLKB
Information Technology
June 22, 2026
S&P SmallCap 600
Addition
Pool
POOL
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Deletion
Embecta
EMBC
Health Care
June 22, 2026
S&P SmallCap 600
Addition
The Campbell's Company
CPB
Consumer Staples
June 22, 2026
S&P SmallCap 600
Deletion
Universal Health Realty Trust
UHT
Real Estate
June 22, 2026
S&P SmallCap 600
Addition
Coty
COTY
Consumer Staples
June 22, 2026
S&P SmallCap 600
Deletion
Semtech
SMTC
Information Technology
June 22, 2026
S&P SmallCap 600
Addition
Concentrix
CNXC
Industrials
June 22, 2026
S&P SmallCap 600
Deletion
Sanmina
SANM
Information Technology
June 22, 2026
S&P SmallCap 600
Addition
Blackbaud
BLKB
Information Technology
June 22, 2026
S&P SmallCap 600
Deletion
Viavi Solutions
VIAV
Information Technology
June 22, 2026
S&P SmallCap 600
Addition
Credit Acceptance
CACC
Financials
June 22, 2026
S&P SmallCap 600
Deletion
Oxford Industries
OXM
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Addition
Lazard
LAZ
Financials
June 22, 2026
S&P SmallCap 600
Deletion
Gogo
GOGO
Communication Services
June 22, 2026
S&P SmallCap 600
Addition
Eastern Bankshares
EBC
Financials
June 22, 2026
S&P SmallCap 600
Deletion
PRA Group
PRAA
Financials
June 22, 2026
S&P SmallCap 600
Addition
Wesbanco
WSBC
Financials
June 22, 2026
S&P SmallCap 600
Deletion
Insteel Industries
IIIN
Industrials
June 22, 2026
S&P SmallCap 600
Addition
Warby Parker
WRBY
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Deletion
Ethan Allen Interiors
ETD
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Addition
Nicolet Bankshares
NIC
Financials
June 22, 2026
S&P SmallCap 600
Deletion
Cytek Biosciences
CTKB
Health Care
June 22, 2026
S&P SmallCap 600
Addition
Liquidia
LQDA
Health Care
June 22, 2026
S&P SmallCap 600
Deletion
Monro
MNRO
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Addition
Rush Street Interactive
RSI
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Deletion
Vital Farms
VITL
Consumer Staples
June 22, 2026
S&P SmallCap 600
Addition
United States Lime & Minerals
USLM
Materials
June 22, 2026
S&P SmallCap 600
Deletion
Cable One
CABO
Communication Services
June 22, 2026
S&P SmallCap 600
Addition
InvenTrust Properties
IVT
Real Estate
June 22, 2026
S&P SmallCap 600
Deletion
Forward Air
FWRD
Industrials
ABOUT S&P DOW JONES INDICES
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.
S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit www.spglobal.com/spdji/en/.
Marvell Technology and Flex Set to Join S&P 500; Others to Join S&P MidCap 400 and S&P SmallCap 600 PR Newswire
NEW YORK, June 5, 2026
, /PRNewswire/ -- S&P Dow Jones Indices will make the following changes to the S&P 500, S&P MidCap 400, and S&P SmallCap 600 indices effective prior to the open of trading on Monday, June 22, 2026, to coincide with the quarterly rebalance. The changes ensure that each index is more representative of its market capitalization range. The companies being removed from S&P MidCap 400 and S&P SmallCap 600 are no longer representative of the mid-cap and small-cap market space, respectively.
Following is a summary of the changes that will take place prior to the open of trading on the effective date:
Effective Date
Index Name
Action
Company Name
Ticker
GICS Sector
June 22, 2026
S&P 500
Addition
Marvell Technology
MRVL
Information Technology
June 22, 2026
S&P 500
Deletion
Pool Corp
POOL
Consumer Discretionary
June 22, 2026
S&P 500
Addition
Flex
FLEX
Information Technology
June 22, 2026
S&P 500
Deletion
The Campbell's Company
CPB
Consumer Staples
June 22, 2026
S&P MidCap 400
Addition
Roku
ROKU
Communication Services
June 22, 2026
S&P MidCap 400
Deletion
Flex
FLEX
Information Technology
June 22, 2026
S&P MidCap 400
Addition
Coeur Mining
CDE
Materials
June 22, 2026
S&P MidCap 400
Deletion
BellRing Brands
BRBR
Consumer Staples
June 22, 2026
S&P MidCap 400
Addition
Semtech
SMTC
Information Technology
June 22, 2026
S&P MidCap 400
Deletion
Coty
COTY
Consumer Staples
June 22, 2026
S&P MidCap 400
Addition
Sanmina
SANM
Information Technology
June 22, 2026
S&P MidCap 400
Deletion
Concentrix
CNXC
Industrials
June 22, 2026
S&P MidCap 400
Addition
Viavi Solutions
VIAV
Information Technology
June 22, 2026
S&P MidCap 400
Deletion
Blackbaud
BLKB
Information Technology
June 22, 2026
S&P SmallCap 600
Addition
Pool
POOL
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Deletion
Embecta
EMBC
Health Care
June 22, 2026
S&P SmallCap 600
Addition
The Campbell's Company
CPB
Consumer Staples
June 22, 2026
S&P SmallCap 600
Deletion
Universal Health Realty Trust
UHT
Real Estate
June 22, 2026
S&P SmallCap 600
Addition
Coty
COTY
Consumer Staples
June 22, 2026
S&P SmallCap 600
Deletion
Semtech
SMTC
Information Technology
June 22, 2026
S&P SmallCap 600
Addition
Concentrix
CNXC
Industrials
June 22, 2026
S&P SmallCap 600
Deletion
Sanmina
SANM
Information Technology
June 22, 2026
S&P SmallCap 600
Addition
Blackbaud
BLKB
Information Technology
June 22, 2026
S&P SmallCap 600
Deletion
Viavi Solutions
VIAV
Information Technology
June 22, 2026
S&P SmallCap 600
Addition
Credit Acceptance
CACC
Financials
June 22, 2026
S&P SmallCap 600
Deletion
Oxford Industries
OXM
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Addition
Lazard
LAZ
Financials
June 22, 2026
S&P SmallCap 600
Deletion
Gogo
GOGO
Communication Services
June 22, 2026
S&P SmallCap 600
Addition
Eastern Bankshares
EBC
Financials
June 22, 2026
S&P SmallCap 600
Deletion
PRA Group
PRAA
Financials
June 22, 2026
S&P SmallCap 600
Addition
Wesbanco
WSBC
Financials
June 22, 2026
S&P SmallCap 600
Deletion
Insteel Industries
IIIN
Industrials
June 22, 2026
S&P SmallCap 600
Addition
Warby Parker
WRBY
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Deletion
Ethan Allen Interiors
ETD
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Addition
Nicolet Bankshares
NIC
Financials
June 22, 2026
S&P SmallCap 600
Deletion
Cytek Biosciences
CTKB
Health Care
June 22, 2026
S&P SmallCap 600
Addition
Liquidia
LQDA
Health Care
June 22, 2026
S&P SmallCap 600
Deletion
Monro
MNRO
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Addition
Rush Street Interactive
RSI
Consumer Discretionary
June 22, 2026
S&P SmallCap 600
Deletion
Vital Farms
VITL
Consumer Staples
June 22, 2026
S&P SmallCap 600
Addition
United States Lime & Minerals
USLM
Materials
June 22, 2026
S&P SmallCap 600
Deletion
Cable One
CABO
Communication Services
June 22, 2026
S&P SmallCap 600
Addition
InvenTrust Properties
IVT
Real Estate
June 22, 2026
S&P SmallCap 600
Deletion
Forward Air
FWRD
Industrials
ABOUT S&P DOW JONES INDICES
S&P Dow Jones Indices is the largest global resource for essential index-based concepts, data and research, and home to iconic financial market indicators, such as the S&P 500® and the Dow Jones Industrial Average®. More assets are invested in products based on our indices than products based on indices from any other provider in the world. Since Charles Dow invented the first index in 1884, S&P DJI has been innovating and developing indices across the spectrum of asset classes helping to define the way investors measure and trade the markets.
S&P Dow Jones Indices is a division of S&P Global (NYSE: SPGI), which provides essential intelligence for individuals, companies, and governments to make decisions with confidence. For more information, visit www.spglobal.com/spdji/en/.
View original content:https://www.prnewswire.com/news-releases/marvell-technology-and-flex-set-to-join-sp-500-others-to-join-sp-midcap-400-and-sp-smallcap-600-302793159.html
New collaboration brings S&P Global's essential intelligence into Cohere's secure enterprise AI platform, North, extending the reach of S&P Global data across the applications and platforms where customers work. Customers can now access financial data directly within Cohere's secure agentic AI platform, accelerating research, analysis, and reporting workflows across financial services. , /PRNewswire/ -- S&P Global (NYSE: SPGI) today announced a strategic collaboration with Cohere, a leading global sovereign AI provider for governments and regulated industries, to bring its trusted financial data directly into Cohere's secure enterprise platform, North. The collaboration will enable customers to leverage S&P Global's essential intelligence across more AI and agentic workflows grounded in verifiable fact, delivering faster research and greater accuracy with trusted, citation-backed information.
With this integration, customers can run sensitive on-premise workloads directly within North powered by Cohere's cutting-edge AI models, combining S&P Global's trusted data with their own enterprise data to generate faster, more accurate answers to complex questions. The collaboration reflects S&P Global's strategy of integrating its data across the AI platforms where customers operate, ensuring its differentiated data translate into real productivity gains, no matter which AI environment a customer chooses.
"We've done the work on the backend to make our data AI-ready, build the retrieval infrastructure, and partner with best-in-class AI providers, so that customers can simply put S&P Global to work in the platforms they already use," said Bhavesh Dayalji, Chief AI Officer of S&P Global and CEO of Kensho. "As agentic workflows become the norm, we deliver value by ensuring that customers can access our data seamlessly and accurately, wherever they work."
"By combining S&P Global's financial intelligence with Cohere's enterprise‑grade sovereign AI platform, we're giving financial institutions a secure foundation to build agentic workflows wherever their data lives that deliver measurable impact," said Frank O'Dowd, Chief Revenue & Commercial Officer of Cohere. "Regulated industries need AI they can trust with their most sensitive workloads, and they want it deeply connected to the proprietary data that drives their business. This collaboration marks a major step forward in how the global financial ecosystem puts high‑trust AI to work."
The Cohere collaboration builds on S&P Global's broader strategy of making its data available across the AI platforms that customers use. This approach ensures customers can access S&P Global's high-quality intelligence in their preferred AI environments, with data validated at every step through source citations without the friction of building custom pipelines.
That reach is enabled by S&P Global and Kensho's sustained investment in building a foundational data retrieval layer for customers, enabling access to S&P Global intelligence at scale across AI and agentic workflows.
To learn more about S&P Global's AI solutions, visit: spglobal.com
Media Contacts:
Orla O'Brien
S&P Global
+1 857-407-8559
[email protected]
Madeline McSherry
Kensho
[email protected]
About S&P Global
S&P Global (NYSE: SPGI) enables businesses, governments, and individuals with trusted data, expertise and technology to make decisions with conviction. We are Advancing Essential Intelligence through world-leading benchmarks, data, and insights that customers need in order to plan confidently, act decisively, and thrive in a rapidly changing global landscape. From helping our customers assess new investments across the capital and commodities markets to navigating the energy expansion, acceleration of artificial intelligence, and evolution of public and private markets, we enable the world's leading organizations to unlock opportunities, solve challenges, and plan for tomorrow – today.
About the Kensho LLM-ready API
The Kensho LLM-ready API integrates with any large language model, enabling customers to use natural language to query a range of S&P Global datasets, including S&P Capital IQ Financials, earnings call transcripts, and more. Unlike typical APIs, it is optimized for LLMs by offering a simplified structure that supports function calling patterns. It comes with a Python library that streamlines everything from authentication to LLM integration. Designed for professionals such as investment bankers, equity analysts, consultants, and other data-driven roles, this LLM-ready API supports efficient retrieval of financial data, including financial statement line items, security identifiers, and company information—ideal for creating pitch books, research reports, and market positioning presentations. The API was developed by Kensho, S&P Global's hub for AI innovation and transformation.
Moody's and S&P Global each run a protected ratings franchise alongside a data business exposed to AI. In early 2026 their results and their share prices began to separate the two.
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For most of their history, the two companies that dominate credit ratings have been valued as steady, single franchises. In early 2026 the split inside them came into view. Moody’s and S&P Global each run two different businesses: a ratings operation that assigns the grades bond issuers cannot do without, and a data and analytics arm that sells research and tools into a market now filling with AI competitors. The first is hard to dislodge. The second is not, and investors have started to treat them differently.
An equity research note published on Substack in March framed each company as a blend of a ratings franchise largely insulated from AI and a data and analytics business in its path, and argued the shares had sold off roughly in line with their exposure to the second. That note is one analyst's opinion, not company disclosure, but the divide it describes is the one the financial results now show.
Why ratings are hard to displaceA credit rating is wired into the rules of finance. Bank capital requirements, the securities a money-market fund may hold, and the terms of countless investment mandates all reference ratings from a recognized agency. An issuer selling a bond generally needs one, and in practice that means Moody's or S&P. Software can read a balance sheet, but it cannot vote itself into those rules, and that is the moat under the ratings business.
The numbers show where the money still comes from. In its fourth-quarter and full-year 2025 results, reported February 10, 2026, S&P Global said ratings revenue rose 12% in the quarter, with transaction revenue lifted by a 28% jump in billed issuance. Moody's, in its results reported February 18, 2026, said revenue at Moody's Investors Service, its ratings arm, rose 17% in the quarter to $946 million. Issuers still pay to be rated, and that revenue grew.
Where AI sits inside the agenciesBoth companies are putting AI into their own products rather than waiting for it to arrive from outside. S&P Global introduced a generative-AI tool it calls CreditCompanion in May 2025, built into its RatingsDirect platform to search and summarize its own ratings and research. Moody's has built generative-AI tools across its analytics line, including a research assistant and a set of agents aimed at credit and portfolio work. So far the agencies have pointed AI at research and analysis, not at producing the ratings themselves.
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Where the exposure isThe exposed half is data and analytics, the part that sells information rather than the rating. That is the work AI tools are learning to do, and it is a large business for both. S&P Global reported full-year 2025 revenue of $15.336 billion across five divisions, only one of which is ratings. Moody's reported full-year revenue of $7.7 billion, with its Moody's Analytics arm generating $943 million in the fourth quarter alone, up 9%. The faster ratings revenue grows, the more the slower-growing analytics side stands out as the part with something to prove against AI.
Trade publication The DESK reported in February that rating-agency share prices fell that week after the release of new analytics tools built on Anthropic's Claude model, which the publication tied to investor sensitivity over how AI might reach the agencies' data and research business. The same report noted Moody's already uses generative AI in its credit analysis and that S&P and Fitch launched AI research tools in 2025. The reported share-price move is a market event described by a third party, not a company disclosure.
What the guidance saysManagement set out 2026 expectations that lean on continued growth, not retreat. S&P Global guided to 2026 adjusted diluted EPS of $19.40 to $19.65 and organic constant-currency revenue growth of 6.0% to 8.0%, and reaffirmed a plan to return at least 85% of adjusted free cash flow to shareholders. Moody's guided to 2026 adjusted diluted EPS of $16.40 to $17.00 and said it plans $2.0 billion in share repurchases alongside a higher dividend. Both companies described AI as something they are integrating into products, and both still guided to double-digit earnings growth.
What to watchThe signal to follow is whether the two halves keep separating. If investors stay convinced the ratings franchise is safe and the data arm is exposed, the agencies' valuations will track their analytics revenue more closely than their ratings fees, and management will keep being asked about AI for that reason. The harder question sits one layer down: whether AI stays a tool the agencies sell into their own research, or becomes a competitor that erodes the data business from outside. The ratings franchise is not the part at risk. The information business built around it is.
S&P Global is rated a 'buy' as it trades below historical valuation despite robust growth, strong margins, and a 53-year dividend increase streak. SPGI's spin-off of the Mobility segment and ongoing AI investments are expected to enhance growth, margins, and business focus, with a July 2026 completion for the spin-off. Q1 2026 results exceeded expectations, with revenue up 10.3% and non-GAAP EPS up 14%, yet shares have declined 18.8% YTD amid AI disruption fears.
Law enforcement warns there may be a surge in converter thefts stemming from increased value
, /PRNewswire/ -- New CARFAX data estimates more than 137,000 catalytic converters were stolen in 2025, with thousands more estimated stolen at the start of this year. Law enforcement warns thieves target these emission-control devices to get at the valuable precious metals they contain, including platinum, palladium and rhodium.
Here are the Top Vehicles Most Frequently Targeted Nationwide:
Ford F-150 pickup truck Hyundai Tucson SUV Ford Explorer SUV Ram 2500 heavy-duty pickup truck Chevrolet Silverado pickup truck Chevrolet Traverse SUV Ram 3500 heavy-duty pickup truck Ford EcoSport SUV Ford Expedition SUV Chevrolet Trax SUV "There are a wide range of vehicles impacted, and most of these are pickup trucks and SUVs, which tend to sit higher off the ground, making it easier for thieves to get in and out," said Patrick Olsen, Editor-in-Chief at CARFAX. "Experts also tell us that while thieves can make anywhere from $25-$300 for a standard catalytic converter, converters from hybrid vehicles can sell for up to $1,400 because they have even more of those precious metals inside."
Several factors may be contributing to continued catalytic converter thefts, including rising precious metal prices. Rhodium, one of the metals found in catalytic converters, has more than doubled in value over the past year, reaching about $11,000 per ounce in March. Prices today remain below the peak of roughly $30,000 per ounce reached in 2021.
Some law enforcement tells CARFAX they've seen a resurgence in catalytic converter thefts, including a recent incident in Maryland where the Sykesville Police Department confirmed at least two drivers were victimized just weeks ago. The trend comes as replacement costs can reach $3,000, particularly for motorists without comprehensive insurance coverage.
"Thieves stripped these catalytic converters in a matter of minutes, leaving the car owners to face thousands of dollars in out-of-pocket repair bills," said Cpl. Annelise Barrett of the Sykesville Police Department. "We are seeing a noticeable bump in these incidents, not only in our area, but in the surrounding cities as well."
To protect your vehicles, law enforcement recommends the following safety measures:
Park securely: Utilize a locked garage whenever possible. Choose high-visibility areas: If parking outside, choose well-lit spaces with high foot traffic. Upgrade security: Install motion-sensor lights and increase your vehicle alarm's sensitivity. Install a physical deterrent: Consider adding a metal cage or lock around your catalytic converter. Thieves target easy opportunities; adding even a minor challenge can cause them to move on. Make identification easier: If possible, engrave your VIN on the catalytic converter. If it is stolen, the VIN can help law enforcement, scrapyards, and pawn shops identify and recover the part. About CARFAX
CARFAX, part of S&P Global Mobility, helps millions of people every day confidently shop, buy, service, and sell cars with innovative solutions powered by CARFAX® vehicle history information. The expert in vehicle history since 1984, CARFAX provides CARFAX Car Listings, CARFAX Car Care, CARFAX History-Based Value , and the flagship CARFAX Vehicle History Report to consumers and the automotive industry. CARFAX owns the world's largest vehicle history database and is nationally recognized as a top workplace by The Washington Post. Shop, Buy, Service, Sell – Show me the CARFAX®.
S&P Global Mobility is a division of S&P Global (NYSE: SPGI). S&P Global is the world's foremost provider of credit ratings, benchmarks, analytics, and workflow solutions in the global capital, commodity, and automotive markets.
June 10, 2026 13:45 ET | Source: Oma Säästöpankki Oyj
OMA SAVINGS BANK PLC STOCK EXCHANGE RELEASE 10 JUNE 2026 AT 20.45 EEST, OTHER INFORMATION DISCLOSED ACCORDING TO THE RULES OF THE EXCHANGE
S&P Global Ratings affirmed the BBB/A-2 credit rating and maintained the negative outlook for Oma Savings Bank Plc
On 10 June 2026, S&P Global Ratings (S&P) has affirmed that the short-term and long-term issuer credit ratings of Oma Savings Bank Plc (OmaSp or the Company) remain unchanged and are BBB/A-2. S&P expects that OmaSp's asset quality will gradually improve in the next 24 months. S&P also estimates that the Company's financial position will remain solid.
At the same time, S&P assigned BBB+/A-2 short-term and long-term resolution counterparty ratings (RCRs) to OmaSp.
S&P also decided to maintain the negative outlook for OmaSp's credit rating. According to S&P, the negative outlook reflects downside risk from deteriorating asset quality and credit provisioning above normalized losses.
S&P's press release will be available at www.omasp.fi Investors > Debt investors > Credit ratings.
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Nasdaq Helsinki Ltd
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www.omasp.fi
OmaSp is a solvent and profitable Finnish bank. About 600 professionals provide nationwide services through OmaSp’s 48 branch offices and digital service channels to over 200,000 private and SME customers. OmaSp focuses primarily on retail banking operations and provides its clients with a broad range of banking services both through its own balance sheet as well as by acting as an intermediary for its partners’ products. The intermediate products include credit, investment, and loan insurance products. OmaSp is also engaged in mortgage banking operations.
OmaSp’s core idea is to provide personal service to its customers, both in digital and traditional channels. OmaSp strives to offer a premium-level customer experience through personal service and easy accessibility. In addition, the development of operations and services is customer oriented. The personnel are committed, and OmaSp seeks to support their career development with varied tasks and continuous development. A substantial part of the personnel also own shares in OmaSp.
This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com.
CompaniesFollow-UpPresumably whenever a stockpicker—whether investor or analyst—chooses the next big idea, that choice isn’t made cavalierly. Neither should the decision to bail if the stock moves in an unanticipated, and unwanted, direction. After much pondering, I recommend staying the course with S&P Global.
LONDON, Ontario--(BUSINESS WIRE)--As Canadians head into the summer months, the used vehicle market is facing increasing pressure, as economic conditions become more challenging nationwide.
The June CARFAX Canada Used Vehicle Market Insights Report reveals that while prices remain elevated compared to pre-pandemic levels, they have generally plateaued so far this year and have come down significantly from 2025.
In April, 30.9% of used vehicles listed for sale had reported damage, with an average listing price $7,464 lower than undamaged vehicles — a significant gap. This spread reflects the variability in how damage impacts value, influenced by both damage severity and vehicle type. While CARFAX Canada offers VIN-specific valuations that capture this variability at the individual vehicle level, the figures in this report are based on broad market estimates.
Used vehicle inventory is climbing fast, but not enough to outstrip levels seen last year. Supply remains constrained due to reduced new vehicle production earlier in the decade and the associated follow-on effect of lower leasing volumes in the same period.
Although most buyers are seeing value in the market, this has yet to translate into sustained transaction growth. Used and new sales are off to a slow start this year, with demand continuing to be constrained by macroeconomic conditions and affordability pressures. While transactions have shown a modest rebound in recent months, overall volumes remain below year-ago levels.
Electric Vehicles
The EV market continues to show volatility, but consumer interest is building. Amongst Canadians planning to purchase a used vehicle in the next 12 months, 22% are considering a Battery Electric Vehicle (BEV). This demand is being driven by expanding infrastructure and higher gas prices, which reached an average of 178.8 cents per litre in April — the highest level for regular unleaded gas seen since July of 2022. But supply remains tight, with BEVs representing just 4% of all used listings and inventory heavily skewed towards higher-priced models.
With gas prices not anticipated to level off anytime soon and new, likely more affordable Chinese EVs arriving on Canadian soil this year — albeit in limited quantities — electric demand is expected to gain momentum. Some Chinese models from manufacturers like BYD, are expected to retail at a lower price point than the average price for a used EV today, helping to improve accessibility. CARFAX Canada research shows that while fuel savings are the number one driver for prospective EV buyers, high price tags remain the biggest barrier. For more EV insights, check out our full report: “What’s next for EVs, and how dealers can get ahead.”
Market Snapshot
Key Takeaways
There were 254,881 used vehicle transactions in April 2026, up 1.2% month-over-month and down 7.2% year-over-year, signalling a modest rebound after recent declines, though demand remains below last year’s levels. Used inventory continues to build for the selling season, with a significant 21.6% month-over-month gain in April. However, this rise has not meaningfully eased longer-term supply constraints, with inventory levels staying essentially flat year-over-year. The national average used vehicle listing price has plateaued since February, showing a modest increase of 0.8% from March, and falling 3.8% from the same time last year. The average used EV listing price reached $40,893 in April, up 4.7% month-over-month after showing a downward trend since late 2025. Recent volatility is being driven by rising fuel costs and limited inventory. CARFAX Canada Used Vehicle Market Insights arm the auto industry with the knowledge to decode market trends, sharpen buying and selling strategies, and navigate an increasingly complex vehicle marketplace with confidence.
For the latest trends and insights on the average price by vehicle condition, region, market segment, and vehicle type, view the full June CARFAX Canada Used Vehicle Market Insights Report here: https://www.carfax.ca/media/carfax-canada-used-vehicle-market-insights-2026-06
About CARFAX Canada
CARFAX Canada, a part of S&P Global (NYSE: SPGI), is Canada’s definitive source of automotive information, delivering vehicle history, valuation and service solutions. Drawing on billions of data records from thousands of sources, its products enable used vehicle buyers, sellers and vehicle service providers to make informed decisions. CARFAX Canada is dedicated to transparency and is trusted to provide vehicle history, valuation and service information to dealerships, vehicle manufacturers, consumers, service shops, major auctions, governments, insurance providers and police agencies.
Connect with CARFAX Canada on Instagram, Facebook and LinkedIn.
New Sustainable1 dataset flags corporate conduct assessed against UNGC principles
, /PRNewswire/ -- S&P Global Energy, the leading independent provider of information, data, analysis, benchmark prices and workflow solutions for the commodities, energy expansion and energy transition markets, today announced that S&P Global Sustainable1 has launched the United Nations Global Compact (UNGC) Screening Dataset.1
The dataset is a one-stop screening solution that provides a structured method to help investment managers, bankers and non-financial corporates assess whether companies are aligned with the 10 UNGC Principles. S&P Global Sustainable1 has applied the UNGC Screening Dataset to a proprietary list of 16,500 companies globally and expects to cover an estimated 24,000.
This dataset combines two evidence streams that enable customers to identify potential misalignment across human rights, labor, environment and anti-corruption principles, providing companies with timely and critical oversight of evolving risks:
Controversy Screening: Tracks corporate controversies linked to one or more UNGC principles. Business Involvement Screening: Flags corporate revenues originating from specific controversial products. "When investors evaluate portfolio risk, understanding any controversies companies are involved in can be a critical step. To help investors understand these risks, we have launched the S&P Global Sustainable1 UNGC Screening Dataset. This comprehensive, foundational tool identifies corporate conduct assessed against UNGC principles and better informs investment decisions," said Thomas Yagel, Head of Sustainable1 at S&P Global Energy. "The UNGC Screening Dataset provides clear and actionable UNGC alignment labels, enabling investors to integrate S&P Global Sustainable1 insights into their decision-making, portfolio construction and ongoing risk oversight."
Leveraging S&P Global's AI capabilities, this new dataset utilizes proprietary AI and machine learning models to systematically identify, classify, and quantify ESG and business risks. The AI models continuously screen millions of public sources globally – across news, NGOs, regulators, and other stakeholders – in multiple languages to detect emerging risk incidents in real time. These AI–driven insights are then validated and contextualized by a dedicated Controversy Research team within Sustainable1, strengthening accuracy, consistency and decision–ready risk indicators for investors.
Using this dataset, S&P Global Sustainable1 published a white paper, "How S&P Global data helps investors navigate the risks of corporate controversies", which found that misalignment in companies is most frequently linked to human rights-related controversies. The concentration of cases tied to human rights – and, to a lesser extent, environmental impacts and corruption – provides indicators for investors as to where they may face the most persistent and material sources of controversy-driven risk. By integrating these risk indicators into portfolio construction and ongoing oversight, investors can more consistently identify elevated exposure; engage companies from a clearer baseline of evidence and strengthen accountability expectations aligned with the UNGC principles.
Details of the UNGC Screening Dataset are available here. Read the full white paper here.
For more information on S&P Global products and solutions, please reach out to our teams here.
1 The UN is not affiliated with, does not endorse, and has not reviewed the S&P Global Sustainable1 UNGC Screening Dataset.
Media Contact
Kathleen Tanzy
S&P Global Energy, Americas/EMEA
+1 917-331-4607
[email protected]
About S&P Global Energy
At S&P Global Energy, our comprehensive view of global energy and commodities markets enables our customers to make superior decisions and create long-term, sustainable value. Our four core capabilities are: Platts for pricing and news; CERA for research and advisory; Horizons for energy expansion and sustainability solutions; and Events for industry collaboration.
S&P Global Energy is a division of S&P Global (NYSE: SPGI). S&P Global enables businesses, governments, and individuals with trusted data, expertise, and technology to make decisions with conviction. We are Advancing Essential Intelligence through world-leading benchmarks, data, and insights that customers need in order to plan confidently, act decisively, and thrive in a rapidly changing global landscape. Learn more at www.spglobal.com/energy
Warren Buffett, former CEO of Berkshire Hathaway, popularized the term "moat" to describe a company with secure competitive advantages, as if it were protected by a moat around the proverbial castle.
Many of his stock picks over the years had this competitive moat. But one moat-protected stock that Buffett never owned is Standard & Poor's Global (SPGI +1.52%), and I'm not sure why -- it may be the best wide-moat stock in the financial sector.
Buffett does own S&P Global's major competitor, Moody's, and has for a long time, but I think SPGI is an even better stock, with multiple moats.
Image source: Getty Images.
Since 2016, when S&P Global spun off from McGraw-Hill, SPGI stock has had one negative year: 2022, when it fell 29%. But over that 10-year stretch, it has an average annualized return of about 14.5%, beating the benchmark it owns, the S&P 500. The stock price is down 17% year to date, but at its low valuation, it looks like a screaming buy.
Multiple moats S&P Global's primary moat is its credit ratings business, which is the leader in the space alongside Moody's. Combined, they own about 80% of the market share, while the rest is held by Fitch and a few smaller players.
This is not a business that is easily penetrated because of the regulatory hoops companies have to jump through, the costs and complexities involved, the trust that needs to be established, and the network effect because other companies rely on these ratings. Plus, there is only a need for a limited number of reputable ratings agencies; otherwise, the ratings could become watered down.
So this lucrative, asset-light business is not going anywhere, though it will fluctuate with the market and credit issuance. When credit issuance is high, this business will dominate, but when it is not, S&P has other durable businesses that can fill the void.
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The other moat is its indexing business, perhaps the one most associated with the company. S&P is the leading indexer through its various benchmarks, including the S&P 500. This is not its most lucrative business, but it is steady and has been growing, buoyed by huge assets in ETFs that track the S&P 500 and other indexes. In the first quarter of 2026, the indexing business was SPGI's fastest growing, with revenue up 17% year over year.
A solid buy The third major business is Market Intelligence, the biggest revenue driver, along with ratings. It is one of the market leaders, providing data, intelligence, analysis, and insights for institutions. It recently spun off its mobility/transportation data business to focus more on its core offerings.
The combination of the three major moat-protected segments provides SPGI with a balanced, durable revenue stream that allows the stock to navigate various market conditions, thereby ensuring its consistency. In Q1, SPGI saw revenue increase 10% year over year, while earnings rose 32%. For the full year, it anticipates revenue growth of 6.3% to 8.3%.
The stock is down 17% year to date, due to speculative fears of artificial intelligence (AI) disruption, among other issues. But the stock is as cheap as it's been in a while, trading at 21 times forward earnings. At this valuation, it is a no-brainer buy.
The Late-Stage Bull Market Is a Buying Opportunity for TechAutomatic Data Processing NASDAQ: ADP President and CEO Maria Black said the human capital management provider is seeing a “generally stable” but still muted labor environment, while positioning the company for what she described as a “defining moment” for the HCM industry.
Speaking with Tien-Tsin Huang, who covers payments processors and IT services at JPMorgan, Black said ADP’s data gives it a “front row seat” into labor, wage and employment trends, though she emphasized that the company is not in the business of predictive modeling.
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3 Large Cap Stocks Announce Big Buyback Boosts Amid +20% FallsBlack pointed to ADP’s guidance for roughly 1% “pays per control” growth, which she described as a same-store-style measure of the number of pays per company at ADP. She said the company was pleased to see an uptick in the second and third quarters, allowing it to raise that guide back to roughly 1%.
“I think our lens is that it’s a relatively muted environment. It’s relatively stable,” Black said.
ADP Sees Stable Labor Trends, Some Sector Strength 3 Stocks That Benefit if Companies Cut Costs in 2026Black discussed ADP’s National Employment Report and its newer weekly “National Employment Report Pulse,” or NERP. She said the weekly number was 42,250, while the April report was 109,000. She characterized the broader labor backdrop as a “low hire, low fire” environment.
On the technology sector, Black said IT is still adding jobs, citing 11,000 in February, 16,000 in March and 4,000 in April. She also said some areas, including trades and hospitality, are showing growth, while other sectors remain under more pressure.
Black Says AI Adds Complexity, Not Less Demand for HCM Black said the rise of artificial intelligence is changing jobs and tasks, but she argued it does not reduce the need for payroll, compliance and workforce management systems.
“As AI gets infused into work, we don’t see the need to manage people and payroll and the very functions of HCM to go away,” Black said. “We actually see them becoming even more important.”
She highlighted the complexity of payroll, saying it must be “100% accurate 100% of the time,” and noted that regulatory requirements continue to expand. Black cited areas such as data privacy, data lodgment, federal and state regulatory conflicts, and the EU Pay Transparency Directive.
Black also emphasized ADP’s role in what she called the “final mile” of payroll: connections with regulators, carriers, brokers and banking institutions. She said ADP communicates with “tens of thousands of entities” to complete payroll accurately.
Pricing, Retention and AI Monetization Huang noted that ADP’s recent key performance indicators, including net-positive pricing, retention and client satisfaction scores, appeared to counter some investor concerns about AI disruption. Black said ADP’s model is based on value-based pricing and investments that create productivity and efficiency for clients.
Black said ADP is guiding to 130 basis points of price this year, up from 100 basis points. She said clients continue to ask ADP to bring more value and are willing to pay for it when the value is clear.
Asked whether ADP will monetize AI tools separately or through its normal pricing cadence, Black said the answer is “both.” She said AI can support ADP’s recurring revenue model through more bookings, longer client relationships and referrals. She also said there could be opportunities for new revenue lines, pointing to benchmarking, analytics and employment verification as examples of how ADP has already monetized data-driven tools.
Bookings, Competition and Lyric Black said ADP was pleased with year-to-date bookings momentum and described third-quarter performance as broad-based. She cited international operations, Compliance Solutions, Retirement Services and Insurance Services as areas of strength. She said the company is entering the fourth quarter with “good momentum” and “solid pipelines.”
Black also discussed ADP’s investments in sales headcount, tools and technology, including “The Zone,” a proprietary platform designed to use AI in the sales process by serving up the right lead, seller and offer at the right time.
On competition, Black said ADP operates in a “highly competitive” space and monitors peers closely. However, she said she has not seen anything unusual in the competitive environment. She added that ADP is distinctive because it spans the full spectrum of customers, from very small businesses to global employers with as many as 1 million employees.
Black described ADP’s Lyric platform as a “TAM expander” into enterprise HR. She said Lyric is architected at the employee level and supports “dynamic teams,” multiple reporting managers and task-based work, which she said is becoming more important as AI changes work patterns. She said Lyric, combined with Global Payroll across 140 countries, Global Time and WorkForce Software, has changed ADP’s conversations with enterprise and multinational clients.
Product Roadmap, PEO and Capital Allocation Black said ADP Assist is the company’s overarching framework for AI offerings inside its platforms. She said ADP Assist is deployed across HCM domains including payroll, time, benefits, HR and tax. One cited example was ADP Assist for payroll, which she said is shaving 30 minutes off the payroll cycle for users.
Black also pointed to digital transformation in the down market, including implementation and onboarding automation. She said ADP now has line of sight to “almost entirely automate” some onboarding work.
On the company’s professional employer organization, or PEO, Black said secular demand remains strong, supported by complexity in labor management, regulation and rising healthcare costs. She said roughly 50% of new PEO clients come from ADP’s existing client base, though not every ADP client is a fit for the PEO model.
Black also addressed the RUN/Clover partnership with Fiserv, saying her enthusiasm “only continues to grow.” She said RUN has been placed into the Clover platform and CashFlow Central into the ADP platform, with sales motions aligned between the teams.
Regarding capital allocation, Black said ADP stepped up share repurchases through the end of 2026 and referenced the company’s 51st year of dividends, calling ADP a Dividend King. She said ADP remains open to acquisitions, citing the recent PEI acquisition in Mexico and the $1.2 billion acquisition of WorkForce Software nearly two years ago.
Black closed by emphasizing client trust as a central advantage for ADP as the company navigates technological, economic and workforce changes.
About Automatic Data Processing NASDAQ: ADPAutomatic Data Processing, Inc (ADP) is a global provider of cloud-based human capital management (HCM) and payroll solutions. Founded in 1949 and headquartered in Roseland, New Jersey, ADP began as a payroll processing company and has evolved into a diversified provider of workforce management, HR, benefits administration, tax and compliance services, and analytics for employers of all sizes.
ADP's product portfolio includes payroll processing and tax filing, time and attendance systems, benefits administration, talent management, and HR outsourcing.
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Key Takeaways ADP expands its global HCM and outsourcing reach with cloud-based multi-country solutions.ADP strengthened its HCM suite through acquisitions, including WorkForce Software.Automatic Data Processing paid $2.4 billion in dividends during fiscal 2025. Shares of Automatic Data Processing, Inc. (ADP - Free Report) have had a decent run over the past month. The stock has gained 9.5% against the 6.5% decline of the industry. The Zacks S&P 500 composite has gained 3.7% during the said time frame.
The company’s fourth-quarter fiscal 2026 earnings are expected to increase 14.6% year over year. Its 2026 and 2027 earnings are projected to rise 10.6% and 9.3%, respectively. Revenues are anticipated to grow 6.6% in 2026 and 5.5% in 2027.
Factors That Bode Well for ADPAutomatic Data Processing benefits from its three-tier business strategy, enabling it to sustain and strengthen its position as a leading Human Capital Management (HCM) technology and services provider. The company delivers a complete suite of cloud-based HCM and Human Resource Outsourcing (HRO) solutions. ADP is expanding its international HCM and HRO businesses with established local, in-country software and cloud-based multi-country solutions to broaden its presence across diverse markets.
The company also pursues buyouts as a driver for its overall growth. Acquisitions such as Celergo, WorkMarket, Global Cash Card and The Marcus Buckingham Company have enhanced ADP’s global capabilities, diversified its offerings and strengthened its competitive positioning. The recent acquisition of WorkForce Software has improved the company’s HCM solutions suite.
ADP continues to reward shareholders through consistent dividend payments and share repurchases. In fiscal 2025, 2024, 2023 and 2022, the company paid out $2.4 billion, $2.2 billion, $1.9 billion and $1.7 billion in dividends, respectively. Such moves indicate the company’s commitment to returning value to shareholders and underscore its confidence in its business.
ADP's current ratio (a measure of liquidity) at the end of the third-quarter fiscal 2026 was 1.04, lower than the industry average of 1.93. However, a current ratio of more than 1 often indicates that the company will be able to easily pay off its short-term obligations.
Risks to WatchADP faces significant competition in each of its product lines. Both its Employer Services and Professional Employer Organization Services segments compete with other independent business outsourcing companies in most of their operating regions. The company has observed a few negative impacts on its retention rate due to the rising competition and migration from the legacy business.
The outsourcing industry is labor-intensive and heavily dependent on foreign talent. Surging talent costs amid intensifying competition could limit the company’s ability to continue investing in technology and talent while balancing growth initiatives with profitability.
ADP’s Zacks Rank & Stocks to ConsiderAutomatic Data Processing currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks from the broader Zacks Computer and Technology sector are Cisco Systems (CSCO - Free Report) and Dell Technologies (DELL - Free Report) .
Cisco Systems carries a Zacks Rank of 2 (Buy) at present. It has a long-term (next five years) earnings growth expectation of 9.6%.
CSCO delivered a trailing four-quarter earnings surprise of 2%, on average.
Dell Technologies has a Zacks Rank of 2 at present. It has a long-term earnings growth expectation of 22.3%.
DELL beat the Zacks Consensus Estimate in three of the last four reported quarters and missed once, with an average earnings surprise of 1.2%.
On May 26, 2026, Automatic Data Processing Inc ADP shares fell 3.1% to a current price of $218.35. This decline comes amid a 52-week trading range of $188.16 to $329.93. The stock has seen significant fluctuations, with a year-to-date drop of 14.4% and a one-year decline of 30.3%.
GF Value™ verdict: The current price of $218.35 is 27.7% below the GF Value™ estimate of $301.91, indicating the stock is undervalued.GF Score™: With a score of 87/100, ADP is rated as strong, suggesting solid long-term performance potential.Most notable signal: Insiders have recently bought $0.7 million worth of shares while selling $0.4 million, indicating a net positive sentiment among management. Is ADP Overvalued or Undervalued? Currently, ADP's stock price of $218.35 is significantly lower than the GF Value™ of $301.91, which suggests that the stock is undervalued by approximately 27.7%. This margin of safety can be appealing for potential investors, as it indicates room for upside should the market correct itself. The GF Valuation label identifies ADP as "Modestly Undervalued," suggesting that while there is an opportunity for appreciation, it may not be without risks. Investors should consider the overall market conditions and the company's fundamentals before making decisions based solely on valuation metrics.
GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Given the current price is well below the GF Value™, it presents a potential opportunity for those looking to invest in stocks with strong fundamentals.
How Does ADP's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 20.4x 30.4x Forward P/E 17.9x - ADP's current P/E ratio of 20.4x is significantly below its 5-year median P/E of 30.4x, indicating that the stock is trading at a valuation much lower than its historical average. The forward P/E of 17.9x further suggests a potential for future price appreciation. This P/E analysis aligns with the GF Value™ verdict, reinforcing the conclusion that the stock is undervalued compared to its historical valuation metrics.
What Does ADP's GF Score™ Tell Us? Metric Rating GF Score™ 87/100 Financial Strength 6/10 Profitability 9/10 Growth 10/10 Valuation 8/10 Momentum 2/10 The GF Score™ of 87/100 indicates that ADP is positioned favorably in terms of potential long-term returns. The strongest areas are Growth, with a perfect score of 10/10, and Profitability, which scores 9/10, suggesting robust operational efficiency and potential for future earnings growth. However, the Momentum rank of 2/10 highlights recent weaknesses in price performance, which may raise concerns for short-term investors.
What Are Insiders Doing with ADP Stock? In the past three months, insider activity at ADP has shown a slight positive trend, with insiders purchasing $0.7 million worth of shares while simultaneously selling $0.4 million. This net buying activity can be seen as a positive signal, indicating that those with the most insight into the company believe the stock is undervalued at current levels. This could suggest a level of confidence in the company's future performance.
What This Means for Investors Based on the GF Value™ analysis, Automatic Data Processing Inc ADP is currently undervalued, presenting a potential opportunity for long-term investors. However, it is essential to consider the broader market context and the company's fundamentals in conjunction with this valuation assessment.
For the complete analysis, visit the Automatic Data Processing Inc ADP stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.
Frequently Asked Questions What is ADP's GF Score™?
ADP's GF Score™ is 87/100, indicating that it is rated as strong and has potential for higher long-term returns based on historical performance.
Is ADP overvalued or undervalued?
ADP is considered undervalued, with its current price being 27.7% below the GF Value™ estimate, suggesting potential for price appreciation.
What is ADP's P/E ratio?
ADP's current P/E ratio is 20.4x, which is significantly below its 5-year median P/E of 30.4x, indicating that the stock is trading at a lower valuation compared to its historical averages.
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
On May 27, 2026, we delve into the DCF analysis for Automatic Data Processing Inc ADP , a company currently facing mixed price performance with a year-to-date decline of 14.4% and a significant drop of 30.3% over the past year. Below are key highlights from our analysis:
DCF Earnings-based intrinsic value of $214.16 compared to the current price of $218.35 (margin of safety: -2.0%) DCF Free Cash Flow (FCF)-based intrinsic value of $226.17, providing a second opinion on valuation GF Score™ of 87/100 indicates a high reliability of the DCF inputs What Is ADP Worth? DCF Earnings-Based Model To determine the intrinsic value of ADP using a Discounted Cash Flow (DCF) model, we apply a two-stage approach. The first stage accounts for a high growth period over the next ten years, while the second stage estimates the terminal value based on a more stable growth rate. Below are the assumptions used in our DCF model:
Parameter Value Current EPS (TTM, excl. non-recurring) $10.74 10-Year Growth Rate 13.3% 10-Year Treasury Rate 4.47% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage, we project EPS growth at 13.3% annually for ten years, discounted at a rate of 11%. The calculated value for this growth stage is $120.41 per share. In the second stage, we apply a terminal growth rate of 4% for an additional ten years, which results in a terminal stage value of $93.75 per share. The summary of our calculations is as follows:
Stage Description Value Growth Stage (Years 1-10) EPS growing at 13.3%, discounted at 11% $120.41 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $93.75 Intrinsic Value Growth + Terminal $214.16 With the current price at $218.35, our intrinsic value of $214.16 indicates that ADP is fairly valued, with a margin of safety of -2.0%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research shows stock prices correlate more closely with earnings than with free cash flow. For further details, visit the ADP DCF Calculator.
What Does the Free Cash Flow DCF Say? In addition to the earnings-based DCF model, we also evaluated ADP using a Free Cash Flow (FCF)-based DCF model. The intrinsic value derived from the FCF analysis is $226.17. This value provides a second perspective on ADP's valuation, and when compared with the earnings-based intrinsic value of $214.16, we see a slight divergence. However, both models suggest that ADP is fairly valued, with the FCF model indicating a margin of safety of 3.5%.
How Does GF Value™ Compare to the DCF Models? According to GuruFocus, the GF Value™ for ADP is $301.91, indicating that the stock is 27.7% undervalued based on this proprietary measure. GF Value™ is calculated from historical trading multiples, past business growth, and future performance estimates. While the DCF models suggest that ADP is fairly valued, the GF Value™ presents a more optimistic view, suggesting that all three valuation methods (DCF earnings, DCF FCF, and GF Value™) provide differing perspectives on ADP's valuation. For more information, visit the GF Value™ page.
What Does ADP's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested from 2006 to 2021). Below is a summary of ADP's GF Score™ metrics:
Metric Rating GF Score™ 87/100 Financial Strength 6/10 Profitability 9/10 Growth 10/10 Valuation 8/10 Momentum 2/10 With a predictability rank of 4/5 stars, this indicates that the DCF model is more reliable for ADP. For more details, visit the ADP stock page.
Key Assumptions and Limitations It is important to recognize that DCF models are highly sensitive to the assumptions made regarding growth rates and discount rates. Additionally, stocks with low predictability ratings tend to produce less reliable DCF estimates. The terminal growth rate of 4% is a simplifying assumption that may not fully capture the complexities of future growth.
What This Means for Investors In summary, the three valuation models—DCF earnings, DCF FCF, and GF Value™—provide a comprehensive view of ADP's valuation. While the DCF earnings model suggests a fair valuation, the FCF model indicates a slight undervaluation, and the GF Value™ suggests that ADP may be undervalued based on historical performance metrics. Overall, ADP appears to be fairly valued based on the DCF analysis, but the GF Value™ presents a more favorable outlook. For the full DCF analysis, visit the ADP DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.
Frequently Asked Questions What is ADP's intrinsic value based on DCF?
This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].
, /PRNewswire/ -- For the four weeks ending May 9, 2026, U.S. private employers added an average of 35,750 jobs per week, according to the NER Pulse, a weekly update of the monthly ADP National Employment Report (NER).
Hiring slowed from the previous week. These numbers are preliminary and could change as new data is added.
The NER Pulse is an estimate of the week-over-week change in employment based on a four-week moving average. These estimates are based on ADP's finely tuned, high-frequency data. The data is seasonally adjusted and have a two-week lag to allow for more complete and accurate estimates of real-time employment trends.
The NER Pulse, including 12 weeks of historical data, publishes every Tuesday at 8:15 a.m. ET, except weeks when ADP Research publishes the monthly National Employment Report which is built on a reference week that includes the 12th day of the month. The press release is available Tuesdays at 8:15 a.m. ET in the ADP Media Center. The NER Pulse is also available shortly after 8:15 a.m. ET on release days at ADP Research and in Main Street Macro.
The next NER Pulse will be released June 9, 2026. For upcoming release dates please refer to the calendar on the NER website.
The ADP National Employment Report and the NER Pulse are produced by ADP Research in collaboration with the Stanford Digital Economy Lab.
About ADP Research
The mission of ADP Research is to make the future of work more productive through data-driven discovery. Companies, workers, and policy makers rely on our finely tuned data and unique perspective to make informed decisions that impact workplaces around the world.
To subscribe to monthly email alerts or obtain additional information about ADP Research, including employment and pay data, methodology, and a calendar of release dates, please visit https://www.adpresearch.com.
About ADP (NASDAQ: ADP)
ADP has been shaping the world of work with innovation and expertise for more than 75 years. As a global leader in HR and payroll solutions, ADP continuously works to solve business challenges for our clients and their workers, from simple, easy-to-use tools for small businesses to fully integrated platforms for global enterprises – and everything in between. Always Designing for People means we're focused on just that – people. We use our unmatched AI-driven insights and proven expertise to design innovative solutions that help people achieve greater success at work. More than 1.1 million clients across 140+ countries rely on ADP's exceptional service to support their people and drive their business forward. HR, Talent, Time Management, Benefits, Compliance, and Payroll. Learn more at ADP.com.
ADP, the ADP logo, and Always Designing for People, ADP National Employment Report, and ADP Research are registered trademarks of ADP, Inc. All other marks are the property of their respective owners.
A month has gone by since the last earnings report for Automatic Data Processing (ADP - Free Report) . Shares have added about 3.7% in that time frame, underperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is ADP due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
ADP's Q3 Earnings Beat EstimatesAutomatic Data Processing posted third-quarter fiscal 2026 adjusted earnings per share of $3.37, beating the Zacks Consensus Estimate of $3.28 by 2.7%. The metric increased 10.1% from the year-ago quarter.
Total revenues came in at $5.94 billion, topping the consensus mark of $5.86 billion by 1.4% and rising 7% year over year. Operationally, Employer Services client revenue retention and overall client satisfaction reached record highs for the third quarter.
ADP Posts Broad-Based Top-Line GrowthADP’s revenue performance reflected gains across its two operating segments. Employer Services revenues increased 7% year over year to $4.04 billion, whereas PEO Services revenues rose 7% to $1.91 billion.
Client funds tailwinds also remained supportive. Interest on funds held for clients increased 14% year over year to $403.9 million, driven by average client funds balances that rose 9% to $48.3 billion and an average yield of 3.3%, up 10 basis points.
Automatic Data Processing Sees Employer Services LiftEmployer Services continued to be a key growth engine in the quarter. Management cited solid business booking growth, while retention and client satisfaction set record highs for the third quarter.
Profitability improved meaningfully in the segment. Employer Services’ margin expanded 130 basis points year over year, with ADP pointing to operational productivity improvements alongside growth in client funds interest revenues as notable contributors.
ADP’s PEO Segment Mix Weighs on MarginPEO Services turned in another quarter of revenue expansion, but profitability moved the other way. Segment margin declined 120 basis points year over year, reflecting a combination of business mix and cost items within the segment.
ADP noted that zero-margin benefits pass-through growth was a key factor behind the margin pressure. Higher state unemployment insurance costs and higher selling expenses also contributed. On an operating metric basis, average worksite employees increased 2% year over year to about 762,000.
Automatic Data Processing Expands Adjusted Operating ProfitADP converted its revenue growth into higher operating profit. Adjusted EBIT increased 10% year over year to $1.79 billion and the adjusted EBIT margin improved to 30.2%, representing an 80-basis-point expansion.
Below the operating line, ADP’s effective tax rate for the quarter was 23.7% on both a reported and adjusted basis. On a GAAP basis, net earnings increased 9% year over year to $1.36 billion, while diluted earnings per share rose 10% to $3.38.
ADP’s Balance Sheet Shows Higher Client Fund LevelsAutomatic Data Processing ended March 31, 2026, with cash and cash equivalents of $3.23 billion. Funds held for clients totaled $46.41 billion, matched by client funds obligations of $46.77 billion, underscoring the scale of client funds activity in the quarter.
On leverage, long-term debt stood at $3.98 billion. Through the first nine months of fiscal 2026, ADP generated $4.01 billion in cash from operating activities. Capital returns remained sizable, with $1.46 billion used for share repurchases and $1.94 billion paid out in dividends over the same nine months.
Automatic Data Processing Raises FY26 OutlookADP raised its fiscal 2026 outlook following the quarter’s results. The company expects total revenue growth of 6-7% and an adjusted EBIT margin expansion of 70-80 basis points. It also lifted its adjusted diluted earnings per share growth view to 10-11%.
Within the outlook, ADP updated expectations for client funds contribution, projecting interest on funds held for clients of $1.340 billion to $1.350 billion, and total contribution from the client funds extended investment strategy of $1.300 billion to $1.310 billion. Strategically, ADP highlighted continued investment in AI across products and service delivery, including further deployment of ADP Assist agents and an expanded agentic AI ecosystem through ADP Marketplace, alongside scaling GenAI capabilities across service operations via “The Zone.”
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
VGM ScoresCurrently, ADP has a average Growth Score of C, however its Momentum Score is doing a bit better with a B. Charting a somewhat similar path, the stock was allocated a score of C on the value side, putting it in the middle 20% for value investors.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, ADP has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerADP belongs to the Zacks Internet - Software industry. Another stock from the same industry, F5 Networks (FFIV - Free Report) , has gained 18.4% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
F5 reported revenues of $811.7 million in the last reported quarter, representing a year-over-year change of +11%. EPS of $3.90 for the same period compares with $3.42 a year ago.
F5 is expected to post earnings of $3.98 per share for the current quarter, representing a year-over-year change of -4.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +0.9%.
F5 has a Zacks Rank #2 (Buy) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.
Throughout the first quarter of the year, the tech sector was a laggard as fears of an artificial intelligence (AI) bubble carried over from the selloff that began in October 2025.
But since the start of the second quarter, that corner of the market has rallied—so much so that it has now overtaken energy as the best performer among the S&P 500’s 11 sectors in 2026.
Get Salesforce alerts:
But within tech, there has been one notable omission from the rally: software. As fears over AI’s encroachment on the industry linger, beaten-down stocks operating in that space have amassed some of the worst year-to-date (YTD) losses across the market.
However, management at some software companies are viewing these corrections as a golden opportunity to take advantage of undervalued shares, signaling that they believe the market has mispriced their stocks.
For the following three companies, that is evidenced through enormous share repurchase authorizations that could prove to be prudent decisions in the long term.
Salesforce Announces Its Largest-Ever Stock BuybackSalesforce Today
$166.07 -0.38 (-0.23%)
As of 03:59 PM Eastern
This is a fair market value price provided by Massive. Learn more.
52-Week Range$161.40▼
$276.80Dividend Yield1.06%
P/E Ratio19.22
Price Target$259.26
Authorized stock buybacks allow—but do not require—companies to repurchase their own stock. Regardless, San Francisco-based Salesforce NYSE: CRM is going all in.
The cloud software company, which focuses on customer relationship management and enterprise applications, announced a share repurchase program on March 16, the largest in its history.
The $25 billion accelerated stock buyback plan accounts for more than 14% of CRM’s shares outstanding.
According to the company’s press release, the plan calls for the repurchase of 103 million shares and “represents the immediate execution of half of the $50 billion aggregate Share Repurchase Program authorized by Salesforce’s Board of Directors in February 2026.”
Those 103 million shares account for approximately 80% of the total shares that the company anticipates repurchasing. From its Jan. 7 YTD high, CRM fell by more than 38% before hitting its YTD low on April 10. Since then, the stock has gained a modest 9.1%.
Of the 39 analysts currently covering Salesforce, 26 have assigned it a Buy rating. Overall, it receives a consensus Moderate Buy rating with an average 12-month price target that implies around 35% potential upside.
Adobe’s Repurchase Plan Aims to Take Advantage of a 5-Year LullAdobe Today
$204.02 -14.78 (-6.76%)
As of 04:00 PM Eastern
52-Week Range$196.90▼
$405.00P/E Ratio11.88
Price Target$285.73
On April 21, San Jose-based Adobe NYSE: ADBE announced a $25 billion stock repurchase authorization that will account for nearly 25% of the company’s shares outstanding.
According to a company press release, Adobe is aiming to return value to shareholders while minimizing dilution.
The plan is a “direct expression of confidence in [Adobe’s] robust cash flow and…long-term value,” says Dan Durn, executive vice president and CFO.
Shareholders are hoping the plan can serve as a shot in the arm for the sluggish stock. After posting a four-year average annual revenue growth rate of 21.31% from 2018 to 2021, Adobe has seen that metric fall to an average of just 10.77% over the past four years.
That resulted in a dramatic drop-off in the company’s net change in cash and equivalents, which fell from $472 million in 2024 to -$2.2 billion in 2025. Still, Adobe has beat earnings expectations for 13 consecutive quarters, and 15 of the last 17 dating back to Q1 FY2022.
But investors have had to endure some pain. Shares of ADBE have dropped around 28% YTD, about 40% over the past year, and more than 50% over the past five years. The stock is virtually flat since the company announced its share repurchase program, but based on analysts’ average 12-month price target, it could see approximately 35% potential upside.
Despite Its Impressive Earnings Streak, ADP Has Yet to Turn a CornerAutomatic Data Processing Today
ADP
Automatic Data Processing
$226.21 +0.44 (+0.19%)
As of 04:00 PM Eastern
52-Week Range$188.16▼
$315.98Dividend Yield3.01%
P/E Ratio21.10
Price Target$244.29
While a $6 billion share repurchase authorization may pale in comparison to the $25 billion announcements of the other two stocks on this list, New Jersey-based Automatic Data Processing NASDAQ: ADP plans to buy back 403 million common shares, or nearly 6% of the company’s shares outstanding.
Since ADP—which provides payroll processing, workforce management, HR, benefits administration, tax, and compliance services software—announced the program on Jan. 14, the stock went on to lose nearly 27% before hitting its YTD low on April 10. Since then, the stock has rallied more than 16%.
That has been welcome news to investors who saw revenue growth fall from a four-year high of nearly 10% in 2022 to just over 7% in 2025. Still, ADP has managed to beat earnings expectations for an impressive 24 consecutive quarters dating back to Q4 FY2020, and 34 out of 35 quarters dating back to Q4 FY2017.
Analysts are maintaining a tepid outlook, though, with the stock receiving a consensus Hold rating and a 12-month price target that implies around 13% potential upside.
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Automatic Data Processing is a US-based global technology company providing cloud-based enterprise human resources management software and services. ADP improved its revenue from $11.7 billion in FY 2016 to $20.6 billion in FY 2025. That's a compound annual growth rate of 6.5%. ADP has a stellar financial position. Its long-term debt/equity ratio is 0.6, while the interest coverage ratio is right around 13.
, /PRNewswire/ -- Private sector employment increased by 122,000 jobs in May and pay was up 4.4 percent year-over-year according to the May ADP National Employment Report® produced by ADP Research in collaboration with the Stanford Digital Economy Lab ("Stanford Lab").
ADP Research The ADP National Employment Report is an independent measure of the labor market based on the anonymized weekly payroll data of more than 26 million private-sector employees in the United States. ADP's Pay Insights captures over 15 million individual pay change observations each month. Together, the jobs report and pay insights use ADP's fine-grained data to provide a representative and highfrequency picture of the private-sector labor market.
"Hiring was more broad-based in May than we've seen in the last few years," said Dr. Nela Richardson, chief economist, ADP. "The labor market continues to show sustained momentum going into the summer hiring season."
May 2026 Report Highlights
View the ADP National Employment Report and interactive charts at www.adpemploymentreport.com.
JOBS REPORT
Private employers added 122,000 jobs in May
Eight out of 10 supersectors showed gains last month, and employers of all sizes were hiring.
Change in U.S. Private Employment: 122,000
Change by Industry
- Goods-producing: 8,000
Natural resources/mining -3,000 Construction 8,000 Manufacturing 3,000 - Service-providing: 114,000
Trade/transportation/utilities 36,000 Information -9,000 Financial activities 7,000 Professional/business services 11,000 Education/health services 57,000 Leisure/hospitality 8,000 Other services 4,000 Change by U.S. Regions
- Northeast: 35,000
New England 18,000 Mid-Atlantic 17,000 - Midwest: 21,000
East North Central 13,000 West North Central 8,000 - South: 23,000
South Atlantic -12,000 East South Central 14,000 West South Central 21,000 - West: 45,000
Mountain 20,000 Pacific 25,000 Change by Establishment Size
- Small establishments: 67,000
1-19 employees 49,000 20-49 employees 18,000 - Medium establishments: 17,000
50-249 employees 10,000 250-499 employees 7,000 - Large establishments: 40,000
500+ employees 40,000 PAY INSIGHTS
Pay for job-stayers rose 4.4 percent in May
Year-over-year pay growth for job-stayers was steady at 4.4 percent. For job-changers, the pace of growth slowed slightly, to 6.5 percent from 6.6 percent in April.
Median Change in Annual Pay
- Job-stayers 4.4%
- Job-changers 6.5%
Median Change in Annual Pay for Job-Stayers by Industry
- Goods-producing:
Natural resources/mining 4.2% Construction 4.5% Manufacturing 4.8% - Service-providing:
Trade/transportation/utilities 4.4% Information 4.0% Financial activities 5.1% Professional/business services 4.1% Education/health services 4.2% Leisure/hospitality 4.5% Other services 4.1% Median Change in Annual Pay for Job-Stayers by Firm Size
- Small firms:
1-19 employees 2.5% 20-49 employees 4.1% - Medium firms:
50-249 employees 4.7% 250-499 employees 4.8% - Large firms:
500+ employees 4.8% To see Pay Insights by U.S. State, Gender, and Age for Job-Stayers, visit here:
The April total number of jobs added was revised from 109,000 to 105,000.
For additional information about the ADP National Employment Report, including historical files, employment and pay data, methodology, and a calendar of release dates, please visit https://adpemploymentreport.com/.
The June 2026 ADP National Employment Report will be released on July 1, 2026 at 8:15 a.m. ET.
About ADP Research
The mission of ADP Research is to make the future of work more productive through data-driven discovery. Companies, workers, and policy makers rely on our finely tuned data and unique perspective to make informed decisions that impact workplaces around the world.
To subscribe to monthly email alerts or obtain additional information about ADP Research, including employment and pay data, methodology, and a calendar of release dates, please visit https://www.adpresearch.com.
About ADP (NASDAQ: ADP)
ADP has been shaping the world of work with innovation and expertise for more than 75 years. As a global leader in HR and payroll solutions, ADP continuously works to solve business challenges for our clients and their workers, from simple, easy-to-use tools for small businesses to fully integrated platforms for global enterprises – and everything in between. Always Designing for People means we're focused on just that – people. We use our unmatched AI-driven insights and proven expertise to design innovative solutions that help people achieve greater success at work. More than 1.1 million clients across 140+ countries rely on ADP's exceptional service to support their people and drive their business forward. HR, Talent, Time Management, Benefits, Compliance, and Payroll. Learn more at ADP.com
ADP, the ADP logo, and Always Designing for People, ADP National Employment Report, and ADP Research are registered trademarks of ADP, Inc. All other marks are the property of their respective owners.
(Kitco News) - The gold market could see renewed selling pressure as the U.S. labor market remains resilient, with the private sector creating slightly more jobs than expected in May.
According to some analysts, the healthy labor market will force the Federal Reserve to pay more attention to the ongoing inflation threat.
Private-sector payroll processor ADP said Wednesday that 122,000 jobs were created in May, up from 109,000 jobs in April. The data came in slightly better than expected, as consensus estimates had forecast a reading of 118,000.
"Hiring was more broad-based in May than we've seen in the last few years," said Dr. Nela Richardson, chief economist at ADP. "The labor market continues to show sustained momentum going into the summer hiring season."
The report said that eight out of 10 supersectors posted gains last month and that employers of all sizes were hiring.
Expectations that the Federal Reserve will have to raise interest rates by the end of the year continue to pressure the gold market, with prices struggling below $4,500 an ounce. Spot gold last traded at $4,460.40 an ounce, down 0.60% on the day.
Along with the solid headline number, the report noted relatively steady wage inflation. Wages for workers who stayed in their jobs rose 4.4% annually last month, unchanged from April. At the same time, workers who changed jobs saw their annual wage increase 6.5%, down slightly from 6.6% in April.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.
, /PRNewswire/ -- Private sector employment increased by 122,000 jobs in May and pay was up 4.4 percent year-over-year according to the MayADP National Employment Report®produced by ADP Research in collaboration with the Stanford Digital Economy Lab ("Stanford Lab").
The ADP National Employment Report is an independent measure of the labor market based on the anonymized weekly payroll data of more than 26 million private-sector employees in the United States. ADP's Pay Insights captures over 15 million individual pay change observations each month. Together, the jobs report and pay insights use ADP's fine-grained data to provide a representative and highfrequency picture of the private-sector labor market.
"Hiring was more broad-based in May than we've seen in the last few years," said Dr. Nela Richardson, chief economist, ADP. "The labor market continues to show sustained momentum going into the summer hiring season."
May 2026 Report Highlights
View the ADP National Employment Report and interactive charts at www.adpemploymentreport.com.
JOBS REPORT
Private employers added 122,000 jobs in May
Eight out of 10 supersectors showed gains last month, and employers of all sizes were hiring.
Change in U.S. Private Employment: 122,000
Change by Industry
- Goods-producing: 8,000
Natural resources/mining -3,000 Construction 8,000 Manufacturing 3,000- Service-providing: 114,000
Trade/transportation/utilities 36,000 Information -9,000 Financial activities 7,000 Professional/business services 11,000 Education/health services 57,000 Leisure/hospitality 8,000 Other services 4,000 Change by U.S. Regions
- Northeast: 35,000
New England 18,000 Mid-Atlantic 17,000 - Midwest: 21,000
East North Central 13,000 West North Central 8,000 - South: 23,000
South Atlantic -12,000 East South Central 14,000 West South Central 21,000 - West: 45,000
Mountain 20,000 Pacific 25,000 Change by Establishment Size
- Small establishments: 67,000
1-19 employees 49,000 20-49 employees 18,000 - Medium establishments: 17,000
50-249 employees 10,000 250-499 employees 7,000 - Large establishments: 40,000
500+ employees 40,000 PAY INSIGHTS
Pay for job-stayers rose 4.4 percent in May
Year-over-year pay growth for job-stayers was steady at 4.4 percent. For job-changers, the pace of growth slowed slightly, to 6.5 percent from 6.6 percent in April.
Median Change in Annual Pay
- Job-stayers 4.4%
- Job-changers 6.5%
Median Change in Annual Pay for Job-Stayers by Industry
- Goods-producing:
Natural resources/mining 4.2% Construction 4.5% Manufacturing 4.8%- Service-providing:
Trade/transportation/utilities 4.4%Information 4.0%Financial activities 5.1%Professional/business services 4.1%Education/health services 4.2%Leisure/hospitality 4.5%Other services 4.1%Median Change in Annual Pay for Job-Stayers by Firm Size
- Small firms:
1-19 employees 2.5%20-49 employees 4.1%- Medium firms:
50-249 employees 4.7%250-499 employees 4.8%- Large firms:
500+ employees 4.8%To see Pay Insights by U.S. State, Gender, and Age for Job-Stayers, visit here:
The April total number of jobs added was revised from 109,000 to 105,000.
For additional information about the ADP National Employment Report, including historical files, employment and pay data, methodology, and a calendar of release dates, please visit https://adpemploymentreport.com/.
The June 2026 ADP National Employment Report will be released on July 1, 2026 at 8:15 a.m. ET.
About ADP Research
The mission of ADP Research is to make the future of work more productive through data-driven discovery. Companies, workers, and policy makers rely on our finely tuned data and unique perspective to make informed decisions that impact workplaces around the world.
To subscribe to monthly email alerts or obtain additional information about ADP Research, including employment and pay data, methodology, and a calendar of release dates, please visit https://www.adpresearch.com.
About ADP (NASDAQ: ADP)
ADP has been shaping the world of work with innovation and expertise for more than 75 years. As a global leader in HR and payroll solutions, ADP continuously works to solve business challenges for our clients and their workers, from simple, easy-to-use tools for small businesses to fully integrated platforms for global enterprises – and everything in between. Always Designing for People means we're focused on just that – people. We use our unmatched AI-driven insights and proven expertise to design innovative solutions that help people achieve greater success at work. More than 1.1 million clients across 140+ countries rely on ADP's exceptional service to support their people and drive their business forward. HR, Talent, Time Management, Benefits, Compliance, and Payroll. Learn more at ADP.com
ADP, the ADP logo, and Always Designing for People, ADP National Employment Report, and ADP Research are registered trademarks of ADP, Inc. All other marks are the property of their respective owners.
View original content to download multimedia:https://www.prnewswire.com/news-releases/adp-national-employment-report-private-sector-employment-increased-by-122-000-jobs-in-may-annual-pay-was-up-4-4-302790127.html
Key Takeaways ADP Posts Highest Private-Sector Jobs Since January 2025JOLTS Yesterday Saw a Spike in Job Openings for AprilMacy's & Medtronic Beat on Earnings; AVGO, CRWD & PVH Later Wednesday, June 3rd, 2026
Jobs Week Coming Up Roses So Far: JOLTS, ADP
Don’t look now, but the labor market in the U.S. has demonstrably improved. Where we had been at historic lows on job openings and under water on private-sector payrolls roughly a year ago, we’re now seeing monthly highs that go back prior to the second Trump administration.
Yesterday’s Job Openings and Labor Turnover Survey (JOLTS) report for April spiked to 7.6 job openings, up from 6.88 million expected and the 6.89 million reported. This is the highest monthly tally since November of 2024, after two downward-moving months. Job Quits quieted to 3.0 million in the month.
The biggest change between March and April was in the near-million-job swing among Professional/Business Services positions, which went from -318K in the former month to +668K in the latter. In March, only the Northeast region gained in job opportunities; for April, only the Midwest did not show a gain in new job openings.
Automatic Data Processing (ADP - Free Report) released its monthly private-sector payroll report this morning for May, posting +122K new jobs filled outside the government sector — the strongest month for this metric since January of 2025. It improves above the +117K consensus estimate and the downwardly revised +105K for April.
Small businesses bounced back in a big way: +67K new private-sector jobs were gained at firms of fewer than 50 employees. Large companies (over 500 employees) grew by +40K, and medium-sized businesses added +17K. Unsurprisingly, Education/Healthcare led by industry, +57K, followed by renewed strength in Trade/Transportation/Utilities at +36K, +11K at Professional/Business consulting, and +8K in Construction. This last may speak to the spreading out of AI investment to material parts of the economy — the building out of data centers includes plenty of construction work.
“Hiring has been more broad-based,” ADP Chief Economist Nela Richardson said, which bears out these findings. Meanwhile, wage gains in the private sector have been a non-factor: those who stayed in their current jobs made +4.4% more on average, whereas jobs changers averaged +6.6%. This remains a very narrow bar in the relatively short time ADP has kept this metric.
Q1 Earnings at a Glance: M, MDT & More to Come
Retail companies wrap up Q1 earnings season this morning, with department store major Macy’s (M - Free Report) reporting its most impressive quarter in years: earnings of $0.13 per share trounced the +$0.02 expected, for a positive earnings surprise of +550%. Revenues also outpaced estimates, but by a more modest +1.28%. Raised guidance helped sentiment, and shares are up around +1% in today’s pre-market. For more on M’s earnings, click here.
Medtronic (MDT - Free Report) , the world’s largest medical device company, also beat estimates this morning, for its fiscal Q4. Earnings of $1.55 per share improved over the Zacks consensus by a penny, on revenues of $9.81 billion — its highest growth in a decade — and above expectations by +1.48%. Shares are up +4% at this hour of the pre-market, but still down nearly -20% year to date. For more on MDT’s earnings, click here.
After today’s close, the earnings parade sweeps up some of its final noteworthy reporters. These include semiconductor giant Broadcom (AVGO - Free Report) , cybersecurity major CrowdStrike (CRWD - Free Report) and Calvin Klein/Tommy Hilfiger parent PVH (PVH - Free Report) .
Questions or comments about this article and/or author? Click here>>
Zacks' 7 Best Strong Buy Stocks (New Research Report) Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
, /PRNewswire/ -- For the four weeks ending May 23, 2026, U.S. private employers added an average of 29,000 jobs per week, according to the NER Pulse, a weekly update of the monthly ADP National Employment Report (NER).
Employment growth eased for the third consecutive week. These numbers are preliminary and could change as new data is added.
ADP Research Week ending
Change
(Four-week moving
average, seasonally
adjusted)
5/23/2026
29,000
5/16/2026
30,500
5/9/2026
35,750
5/2/2026
40,750
4/25/2026
33,000
4/18/2026
30,250
4/11/2026
39,250
4/4/2026
40,250
3/28/2026
40,250
3/21/2026
26,000
3/14/2026
15,250
3/7/2026
10,000
The NER Pulse is an estimate of the week-over-week change in employment based on a four-week moving average. These estimates are based on ADP's finely tuned, high-frequency data. The data is seasonally adjusted and have a two-week lag to allow for more complete and accurate estimates of real-time employment trends.
The NER Pulse, including 12 weeks of historical data, publishes every Tuesday at 8:15 a.m. ET, except weeks when ADP Research publishes the monthly National Employment Report which is built on a reference week that includes the 12th day of the month. The press release is available Tuesdays at 8:15 a.m. ET in the ADP Media Center. The NER Pulse is also available shortly after 8:15 a.m. ET on release days at ADP Research and in Main Street Macro.
The next NER Pulse will be released June 16, 2026. For upcoming release dates please refer to the calendar on the NER website.
The ADP National Employment Report and the NER Pulse are produced by ADP Research in collaboration with the Stanford Digital Economy Lab.
About ADP Research
The mission of ADP Research is to make the future of work more productive through data-driven discovery. Companies, workers, and policy makers rely on our finely tuned data and unique perspective to make informed decisions that impact workplaces around the world.
To subscribe to monthly email alerts or obtain additional information about ADP Research, including employment and pay data, methodology, and a calendar of release dates, please visit https://www.adpresearch.com.
About ADP (NASDAQ: ADP)
ADP has been shaping the world of work with innovation and expertise for more than 75 years. As a global leader in HR and payroll solutions, ADP continuously works to solve business challenges for our clients and their workers, from simple, easy-to-use tools for small businesses to fully integrated platforms for global enterprises – and everything in between. Always Designing for People means we're focused on just that – people. We use our unmatched AI-driven insights and proven expertise to design innovative solutions that help people achieve greater success at work. More than 1.1 million clients across 140+ countries rely on ADP's exceptional service to support their people and drive their business forward. HR, Talent, Time Management, Benefits, Compliance, and Payroll. Learn more at ADP.com.
ADP, the ADP logo, and Always Designing for People, ADP National Employment Report, and ADP Research are registered trademarks of ADP, Inc. All other marks are the property of their respective owners.
ToplineStrategy on Monday disclosed a bitcoin purchase valued at more than $100 million, after billionaire Michael Saylor’s firm—the world’s largest institutional holder of bitcoin—announced a rare sale of the cryptocurrency amid a broad drop in the world’s most valuable digital asset.
Bitcoin’s price recently dropped under $60,000 for the first time since 2024.
Getty Images for Bitcoin Magazine
Key FactsStrategy, in a Securities and Exchange Commission filing on Monday, disclosed it purchased 1,550 bitcoin for $101.3 million last week at an average price of $65,332 per coin, which it funded through $181 million in stock sales.
The announcement comes roughly a week after Strategy disclosed the sale of 32 bitcoins to raise about $2.5 million to pay dividends to stockholders, the company’s second such sale and its first since December 2022, amplifying bearish sentiment for the crypto market as bitcoin’s value fell below $60,000 for the first time since October 2024.
Bitcoin’s value rose as high as $63,926 early Monday, up as much as 8% since hitting a recent low of $59,159 on Friday.
Strategy rose 3.8% as of Monday morning, though shares have plummeted by more than 33% over the last month.
big number845,256. That’s Strategy’s total bitcoin holdings, aggregated at a market value of $63.9 billion, or about $75,680 per token, according to Strategy’s disclosure.
tangentCardano’s ADA token, once the world’s third-largest cryptocurrency behind bitcoin and ethereum, dropped to a low of just under $0.16 on Monday, its lowest level since December 2020. That extended a more than 26% decline for the token over the last week, following the cancellation of Cardano’s flagship summit.
key backgroundBroader pessimism spread across the crypto market following Strategy’s latest bitcoin sale, erasing the record-setting surge for the world’s largest cryptocurrency that followed the 2024 presidential election. President Donald Trump’s push for the U.S. to become the “crypto capital of the world” fueled demand and optimism for the crypto market, with promises of pro-crypto legislation pushing bitcoin above $120,000 by July 2025, and then to $122,000 just days later. Bitcoin’s value has steadily declined since hitting a peak in October 2025, following waning demand for spot bitcoin ETFs and lower odds of interest rate cuts. A hotter-than-expected labor market report last week further increased betting odds of an interest rate hike, aiding in bitcoin’s sell-off.
orbes valuationSaylor, who founded Strategy, then known as MicroStrategy, in 1989, has an estimated net worth of $3.8 billion as of Monday. His fortune plummeted during the dot-com crash, but Strategy’s bitcoin investments made Saylor a billionaire once again, as Saylor has directed his firm to shift its corporate coffers into bitcoin.
further readingForbesBitcoin Falls Below $60,000—Erasing Trump-Fueled RallyBy Ty RoushForbesCardano—Once The Third-Largest Cryptocurrency—Hits 6-Year Low: Here’s WhyBy Ty Roush
Schiff argued that the transaction highlighted a growing problem for Strategy’s capital allocation model.
In an X post on June 8, Schiff called the purchase "damage control, while also increasing its U.S. dollar reserves by $100 million."
He claimed that if Strategy sold common stock below the level required to make Bitcoin purchases accretive, existing shareholders effectively suffered dilution.
To commentators agreeing with Schiff’s interpretation, he said the stock sale is “the beginning of the end.”
Diluting MSTR ShareholdersThe criticism centers on Strategy’s adjusted multiple-to-net-asset-value (mNAV) which measures how much investors are paying relative to the company’s Bitcoin holdings.
Trader Crypto Kaleo pointed to comments Saylor made during Strategy’s Q1 earnings call, where he stated that issuing common stock to buy BTC is accretive only when MSTR trades above roughly 1.22x mNAV.
Strategy’s adjusted mNAV recently fell to around 1.2x, below the threshold Saylor previously identified.
That raises concerns whether newly issued shares could reduce Bitcoin exposure on a per-share basis rather than increase it.
"The cash raise and BTC acquisition was funded entirely by common MSTR ATM sales," Kaleo noted. "He’s diluting MSTR common shareholders."
Image: Shutterstock
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Strategy stock is showing exceptional strength. Why is MSTR stock up today? Crypto Market BackdropSome analysts suggested that Michael Saylor may have sold a small amount of Bitcoin to reset expectations before buying more at lower levels. They argued the sale showed Strategy can adjust its holdings when needed without abandoning its long‑term strategy. Even so, they pointed to macro pressure, weak equities, oil uncertainty and capital rotation into AI as the larger forces weighing on crypto.
Bitcoin's decline did not show the heavy volume that usually marks a lasting bottom. One analyst said Bitcoin may still drift toward the low $50,000 range. Others noted that AI has attracted about $400 billion in capital inflows over the past six months, pulling money away from Bitcoin in the short term.
Strategy Adds 1,550 BitcoinStrategy announced it bought 1,550 BTC for $101 million at an average price of $65,332. This is the company's first purchase since selling 32 coins last week. The buy brings total holdings to 845,256 BTC acquired for just under $64 billion at an average of $75,680 per coin.
The latest purchase came in about $10,000 below that average, which means Strategy lowered its cost basis for the first time since it began accumulating Bitcoin. To fund the buy and rebuild liquidity, the company issued $181 million in common stock and increased its USD reserve by $100 million, bringing total cash reserves to $1 billion.
Regulatory Tailwind: The CLARITY ActMore than 200 companies signed a letter urging Senate leadership to schedule a vote on the Digital Asset Market CLARITY Act. The bill recently advanced out of the Senate Banking Committee and was placed on the Senate Legislative Calendar. Lawmakers are pushing to move it before the July recess.
MSTR Shares Are ClimbingMSTR Price Action: Strategy shares were up 5.94% at $127.60 at the time of publication on Monday, according to Benzinga Pro.
Image: PJ McDonnell/Shutterstock.com
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A decade ago, Strategy (NASDAQ:MSTR | MSTR Price Prediction) was a forgettable enterprise analytics company that traded under the name MicroStrategy. The business intelligence software was fine. The stock was sleepy. Then founder Michael Saylor decided to torch the playbook.
In August 2020, the company made bitcoin its primary treasury reserve asset, becoming the first major public company to do so. The stock stopped behaving like a software ticker and started behaving like a leveraged bitcoin proxy. A 10-for-1 stock split hit in August 2024, the company officially rebranded to Strategy in February 2025, and CEO Phong Le turned the capital markets desk into a perpetual motion machine, raising $25.3 billion in 2025 alone to buy more coins. Today, Strategy holds 713,502 bitcoins, the largest corporate stash on earth.
Your $1,000 Became $6,212, But the Last Year Hurt 10-Year Return
Initial Investment: $1,000 Current Value: $6,212 Total Return: 521.21% Annualized Return: ~20% S&P 500 (same period): $3,484 (248.43%) 5-Year Return
Initial Investment: $1,000 Current Value: $2,485 Total Return: 148.5% Annualized Return: ~20% S&P 500 (same period): $1,745 (74.53%) 1-Year Return
Initial Investment: $1,000 Current Value: $327 Total Return: -67.34% S&P 500 (same period): $1,244 (24.37%) The 10-year number crushes the S&P 500, but almost all of that outperformance came after the 2020 bitcoin pivot. Holding through it required stomach. Shares ran to $396.51 at the Q2 2025 filing in July, then collapsed to $106 by the February 2026 Q4 earnings report as bitcoin slid roughly 40% over the past year. Q4 2025 alone produced a $12.44 billion net loss, driven by a $17.44 billion unrealized loss on the bitcoin pile.
I’d Buy It Only If I Wanted Leveraged Bitcoin I’d put $1,000 into Strategy today if I genuinely believe bitcoin heads materially higher from here and I want amplified exposure with no key-management headache. The bull case is simple: BTC rebounds, the $3.4 billion STRC platform keeps scaling, and the Bitcoin Per Share flywheel makes every dilutive raise accretive. The software business is a quiet kicker, with subscription services up 62.1% YoY.
But I’d avoid it if I’m not ready to underwrite bitcoin itself. Strategy carries $8.2 billion in long-term debt, perpetual preferred dividend obligations growing toward 11.25%, constant ATM dilution, and trades at a premium to its underlying coins. When BTC falls, MSTR falls harder. That last year proved it.
Personally, I lean to the sidelines. If I want bitcoin, I’ll buy bitcoin. The leverage cuts both ways, and the past twelve months were the wrong direction.
Strategy Inc. remains a leveraged play on Bitcoin, despite a recent deviation from its 'never sell' doctrine. The company's preferred stock overhang introduces a genuine new risk, with annual dividend obligations exceeding $750 million and declining USD reserves. MSTR's recent purchase of 1,550 BTC at $65,332 per coin helps average down its cost basis, reinforcing the long-term bullish thesis.
Michael Saylor said Monday that Strategy (NASDAQ:MSTR) shareholders had approved an amendment moving STRC preferred dividends from monthly to semi-monthly.
The first record date is June 30 and the first payment July 15.
Schiff’s Flywheel ArgumentPeter Schiff, the gold bug and persistent Bitcoin critic, was not impressed by the new changes.
He posted that Strategy’s original model generated positive Bitcoin yield by issuing common stock at a premium to net asset value, then later by issuing preferred stock at coupons below Bitcoin’s expected appreciation.
Now, Schiff argued, Saylor is “forcing common shareholders to accept a negative Bitcoin yield just to prop up Bitcoin.”
The dedicated $1 billion preferred-dividend backstop, disclosed the same morning, lines up neatly with that structural critique. Schiff has spent the past several weeks calling STRC a classic centralized Ponzi, arguing the dividend model depends on continuous capital inflows.
The First Bitcoin Sale Since 2022Strategy also sold 32 Bitcoin for roughly $2.5 million between May 26 and May 31, its first disclosed sale since December 2022. The amount is symbolic, but it puts Saylor’s May earnings call line about selling bitcoin “to inoculate the market” into practice.
Two Prime CEO Alexander Blume warned last week that Saylor may have “flown too close to the sun,” arguing the preferred-stack math could force more Bitcoin sales to fund STRC dividends.
MSTR is trading at $127, up roughly 5% Monday, with Bitcoin near $63,500.
Image: Shutterstock
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Strategy (MSTR - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.
Shares of this business software company have returned -35.1% over the past month versus the Zacks S&P 500 composite's +0.2% change. The Zacks Financial - Miscellaneous Services industry, to which Strategy belongs, has lost 6.5% over this period. Now the key question is: Where could the stock be headed in the near term?
Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.
Earnings Estimate RevisionsRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.
Our analysis is essentially based on how sell-side analysts covering the stock are revising their earnings estimates to take the latest business trends into account. When earnings estimates for a company go up, the fair value for its stock goes up as well. And when a stock's fair value is higher than its current market price, investors tend to buy the stock, resulting in its price moving upward. Because of this, empirical studies indicate a strong correlation between trends in earnings estimate revisions and short-term stock price movements.
For the current quarter, Strategy is expected to post earnings of $52.04 per share, indicating a change of +59.6% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The consensus earnings estimate of $116.7 for the current fiscal year indicates a year-over-year change of +866.3%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $74.73 indicates a change of -36% from what Strategy is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #5 (Strong Sell) for Strategy.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.
In the case of Strategy, the consensus sales estimate of $126.95 million for the current quarter points to a year-over-year change of +10.9%. The $503.9 million and $498 million estimates for the current and next fiscal years indicate changes of +5.6% and -1.2%, respectively.
Last Reported Results and Surprise HistoryStrategy reported revenues of $124.3 million in the last reported quarter, representing a year-over-year change of +11.9%. EPS of -$38.25 for the same period compares with -$16.49 a year ago.
Compared to the Zacks Consensus Estimate of $124.6 million, the reported revenues represent a surprise of -0.24%. The EPS surprise was -1021.7%.
Over the last four quarters, Strategy surpassed consensus EPS estimates two times. The company topped consensus revenue estimates three times over this period.
ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.
Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is.
The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an A is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Strategy is graded F on this front, indicating that it is trading at a premium to its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
ConclusionThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Strategy. However, its Zacks Rank #5 does suggest that it may underperform the broader market in the near term.
Lawrence Lepard, a longtime bitcoin investor and advocate, laid out one of the most aggressive bull cases for Strategy (NASDAQ:MSTR | MSTR Price Prediction) on a recent appearance on Thoughtful Money with Adam Taggart. Lepard says he is buying shares both for his fund and personally, and his target price is striking: “I think it’s a $1,000 stock within a few years.”
MSTR last traded around $127.69 after falling 35.53% over the past month and 67.34% over the past year, alongside a sharp pullback in Bitcoin, which is down 21.27% over the past month to about $63,495.
The $1,000 Call and the Leverage Thesis Lepard’s idea is that MSTR is a leveraged proxy on Bitcoin. Strategy borrows in dollars, issues equity and preferred stock, and channels the proceeds into Bitcoin. That structure amplifies Bitcoin’s moves in both directions, which is why MSTR has historically outrun Bitcoin in rallies and undercut it in drawdowns. “I’m very, very bullish on MicroStrategy,” Lepard said, framing Strategy stock as the most concentrated way to express his view that Bitcoin annual returns continue in the 30-40% range.
The Weimar Germany Analogy Lepard compares Michael Saylor’s strategy of borrowing in fiat currency to buy bitcoin to that of a Weimar-era investor who borrowed money to buy industrial businesses. As the value of the German currency collapsed, investors who had borrowed money to purchase hard assets such as businesses, real estate, or commodities often saw their assets rise in value while their debt became easier to repay in increasingly devalued currency.
In an inflationary environment, debt denominated in a depreciating currency becomes easier to service over time, while the hard asset purchased with that debt appreciates in real terms. Lepard’s broader macro view is that, “the monetary system we’ve constructed is fatally flawed.” This is his foundation for treating Bitcoin as digital gold and MSTR as a vehicle to compound it.
The Stretch Preferred and Financial Engineering The newest piece of Saylor’s financing stack is the Stretch preferred stock. It pays an 11.5% dividend, with proceeds generated from the preferred stock used to buy more bitcoin. “To me, it’s an intelligent corporate financial engineering bet,” he said.
The strategy is straightforward: raise capital through high-yield preferred stock offerings, invest the proceeds into Bitcoin, and rely on Bitcoin’s appreciation to more than cover the dividend payments. The challenge is that an 11.5% dividend is a fixed obligation that must be paid regardless of whether Bitcoin is trading at $100,000 or $40,000.
Saylor Becomes the “Richest Man in the World” or Bankrupt Lepard is candid that the outcome for Strategy is binary. On the upside, he believes Saylor “will end up probably the richest man in the world, but it’ll probably take 20 years for that to happen.” On the downside, if Bitcoin fails, Saylor “is going to go bankrupt faster than anybody else.” His conviction is unambiguous: “I kind of feel like we’ve won this game now. It’s become pretty obvious we’ve won this game.”
Prediction markets paint a more measured picture. Polymarket traders assign only an 8% probability of a MicroStrategy margin call in 2026, but just a 36% probability that the company reaches 1 million BTC by year-end. Sell-side analysts maintain a consensus target of $351.54, with 14 buy ratings and 1 hold, well below Lepard’s $1,000 figure but well above today’s price.
Lepard’s MSTR thesis is among the most aggressive expressions of Bitcoin bullishness in public markets. The same financial engineering that makes the $1,000 scenario possible, layered preferreds and dollar-denominated debt funding bitcoin purchases, also stacks fixed obligations that get harder to meet if Bitcoin keeps sliding. MSTR is a leveraged, binary-outcome way to play bitcoin rather than a substitute for owning it directly.
Cryptocurrency markets began soaring following the 2024 U.S. presidential election, reaching new all-time highs in August 2025 as the crypto-friendly Trump administration began implementing policies. But this summer has been anything but sunny for crypto markets. Bitcoin has erased all its post-election gains over the last few weeks, dipping below the critical $60,000 level for the first time since September 2024. Crypto is naturally a tornado of volatility, but this time the market action appears to be generating from major institutional players, not retail investors.
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Why Crypto Markets Are Crashing in 2026The total crypto assets market cap has fallen to under $2.5 trillion, down from nearly $4.4 trillion just eight months ago. After moving in tandem with the Nasdaq 100 for much of the AI rally, Bitcoin and its cohorts have become dislocated from the tech sector due to a host of industry and macroeconomic factors.
Institutional Derisking: This should be the biggest concern amongst crypto investors. Bitcoin ETFs are seeing record outflows so far in 2026, including the newer spot ETFs that were viewed as less risky than the futures-based funds. Institutional funds have been a constant and reliable liquidity source, and if this capital exits the market, volatility will only get worse.
Treasury Drag: Digital asset treasury companies have become a popular trade over the last few years. These companies would issue equity to buy digital assets, and investors would happily pay a premium for the stock to gain crypto exposure. However, as crypto prices plummet, these treasury companies could be forced sellers at prices below cost basis to cover other obligations. We’ll delve into an example in a minute.
Geopolitical Shocks, Hawkish Policy, and Risk Rotation: While not crypto-specific, the specter of lingering inflation and high rates continues to weigh on volatile, risky assets. Market participants now consider rate hikes as likely as rate cuts this year, which is dampening crypto enthusiasm. Additionally, AI stocks have stolen the spotlight for retail risk seekers, and many former crypto traders now seek the volatility of memory or AI infrastructure stocks.
3 Stocks to Avoid as Cryptocurrencies PlummetCrypto’s in trouble at the moment, and any urge to buy the dip is probably best left ignored. Bitcoin at $60,000 is still “only” 50% off its all-time high (a drawdown for ants, Bitcoin HODLers will tell you), and industry news continues to lean negative. Here are three stocks unlikely to get hot this summer:
Strategy: Bitcoin Sales Trigger Larger WorriesCEO Michael Saylor has been one of the world's biggest Bitcoin bulls, but apparently even he sees trouble ahead. Last week, Strategy Inc. NASDAQ: MSTR announced it had sold Bitcoin for the first time since 2022, dumping 32 tokens for approximately $2.5 million. Yes, 32 Bitcoins is a trivial amount for a company that holds more than 800,000 in total, but the reason for the sale spooked investors more than the amount. Strategy sold Bitcoin to cover dividend obligations from its preferred stock, STRC, which dipped below par to $95 on June 3. STRC is issued to fund Strategy’s Bitcoin purchases and prevent dilution of common shareholders, but the dividend bump signals softening demand for the preferred.
Strategy purchased more Bitcoin during the recent dip, but the “Never Sell” narrative has blown up, and weak demand for preferred shares puts the company’s whole treasury strategy at risk. MSTR shares have closely tracked Bitcoin spot prices, and like BTC, the stock is back at September 2024 levels. No technical signals hinting at a reversal yet either; in fact, the Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) indicators both continue to shed momentum.
Bullish: High Beta Exchange With Dwindling VolumeBullish Inc. NYSE: BLSH went public last summer, and its first year in public markets hasn’t exactly lived up to its namesake. Bullish is a cryptocurrency exchange similar to Coinbase Global Inc. NASDAQ: COIN.
Its shares now trade below their IPO price, thanks to declining trading volumes. The company missed earnings-per-share estimates in its Q1 2026 report on May 14, largely due to slowing growth in trading revenue. The $4.2 billion acquisition of Equiniti is also a huge risk, considering Bullish’s current market cap sits at $4.1 billion.
There appears to be no end in sight to the drawdown. The stock is revisiting the February all-time lows, and the RSI and MACD show sellers are in full control at the moment. Unless trading volumes return, it's probably best to bet bearish on Bullish.
ProShares Bitcoin ETF: Higher Costs and Risks Compared to Spot ETFsThe ProShares Bitcoin ETF NYSEARCA: BITO was one of the first Bitcoin ETFs available on U.S. exchanges, but its strategy has quickly become outdated. BITO holds a combination of CME Bitcoin futures contracts and U.S. Treasuries, aiming to mimic Bitcoin's price without actually holding it. But now that spot ETFs are on the market, holders are paying a 0.95% expense ratio for a fund facing decay risk. When Bitcoin prices decline, BITO is forced to roll its expiring futures into more expensive, later-dated contracts, which erodes the fund's net asset value (NAV) and causes underperformance relative to Bitcoin's spot price. A sustained drawdown is the worst type of bear market for futures-based funds like BITO.
BITO has lost more than 60% over the last 52 weeks, failing to capitalize on the crypto rally following Trump’s election win. The stock recently hit a new all-time low after another failed 50-day moving average breakout, and the MACD shows a complete collapse in buying. With assets under management (AUM) now below $1.50 billion, this is looking increasingly like an obsolete asset headed for dissolution.
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Lawrence Lepard, a longtime bitcoin investor and author, spoke with host Adam Taggart on the Thoughtful Money podcast episode "The Next Big Money Printing Cycle Is Almost Here," and planted a contrarian flag. With Bitcoin sliding to around $63,000 from its all-time high of $124,000-$126,000, Lepard told listeners, "There were a lot of people ready to... Top Bitcoin Analyst Predicts $200K Within Two Years: 'We're Either At Or Within Spitting Distance Of A Bottom'
On Friday, June 5, Bitcoin fell below $60,000 for the first time since October 2024, putting the asset down roughly 50% from its peak. While Bitcoin has rebounded to over $63,000 as of Monday, June 8, it’s clear that crypto investors have missed out on the gains the market has seen so far this year. However, John D’Agostino, Head of Institutional Strategy at Coinbase, told CNBC on June 8 that both retail and institutional investors are treating crypto as a long-duration asset to buy and hold, signaling confidence in the asset.
Coinbase (NASDAQ:COIN | COIN Price Prediction) trades at $161.49 after a 32.61% year-to-date drawdown, and spot bitcoin proxy Fidelity Wise Origin Bitcoin Fund (NYSEARCA:FBTC) is down 31.18% YTD. The behavioral question D’Agostino raises matters precisely because the tape looks ugly.
The Institutional “Buy The Discount” Signal D’Agostino frames institutional behavior as conviction buying. “I have the luxury of speaking to institutional investors. They’ve put months and years into looking at this asset class. So when they do that, and it’s cheaper, they like it,” he said. His line captures the mindset: “They loved it at 125, they liked it at 100, and they love it even more at 65.”
Investors should remember that D’Agostino is a Coinbase executive and benefits when interest in crypto grows. At the same time, few people have more direct exposure to institutional crypto flows, giving him a unique vantage point on how large investors are behaving during market downturns.
The new entrants he flags are family offices and sovereign wealth funds in the UAE, accumulating at lower prices. That mirrors what Coinbase has been reporting in its filings: institutional transaction revenue of $136 million in Q1 2026 held up even as total crypto market capitalization and trading volumes both fell more than 20% sequentially. Coinbase also flagged its 12th consecutive quarter of net native unit inflows, with strength in BTC, ETH, and SOL.
The Retail Stickiness Signal “We’re still at about $100 billion of bitcoin ETF exposure. Just think about that. This is a very, very new product. The price has dropped almost 50% from the peak. And we’ve only seen about 15% drawdown in the retail interest,” D’Agostino said, pointing to retail ETF balances that have barely budged.
In prior cycles, retail capitulated hard on drawdowns of this size. ETF holdings barely budging against a roughly 50% price decline is a different behavioral pattern. D’Agostino’s summary: “I think both retail and institutional are signaling this is a long-term asset you want to hold.”
Conversations on Reddit tell a more cautious story. Discussions around MicroStrategy (NASDAQ:MSTR) in early June centered on the company’s first bitcoin sale since 2022, a $2.5 million disposition, with sentiment skewing bearish.
The Regulatory Infrastructure Tailwind D’Agostino also pointed to policy progress: “We have seven bills circulating that will do great things for the institutional piping that supports bitcoin and other crypto assets.” Cleaner tax treatment and market-structure rules lower friction for large allocators to participate at scale, which supports the durable-asset-class thesis over time.
Coinbase recently detailed a 14% headcount reduction targeting approximately $500 million in annualized cost savings, alongside $303.3 million in adjusted EBITDA, marking its 13th consecutive positive quarter.
What It Means For Investors The broader thesis is that crypto is evolving from a speculative trade into a long-term portfolio allocation. According to D’Agostino, both institutional and retail investors held through Bitcoin’s roughly 50% drawdown rather than rushing for the exits. Investors who want regulated exposure typically use spot bitcoin ETFs or crypto-linked equities such as Coinbase or MicroStrategy, the latter of which holds 845,256 BTC as of June 8, 2026.
Strategy (NASDAQ:MSTR | MSTR Price Prediction) is positioned as a long-horizon vehicle because it is the only public-market structure engineered to compound a fixed-supply monetary asset across unlimited capital-markets cycles, with a balance sheet built to outlast bitcoin’s drawdowns rather than be liquidated by them.
Pillar 1: Structural Durability The forever case starts with a balance sheet no peer has replicated. Strategy holds 818,334 BTC as of May 3, 2026, a position worth roughly $54 billion and backed by $36.65 billion in shareholders’ equity. In 2025 the company raised $25.3 billion in capital, making it the largest equity issuer among U.S. public companies for the second consecutive year, and it has already pulled in $11.68 billion through ATM offerings YTD 2026. That capital-markets machinery, paired with the legacy software business whose subscription revenue grew to $58.88 million at a 67.1% gross margin, is the durable engine.
Pillar 2: Compounding, Not Income MSTR common stock pays no dividend. The compounding mechanism is bitcoin-per-share growth, measured as BTC Yield, which ran 9.4% YTD 2026 after 22.8% in full-year 2025. The preferred stack handles cash income for investors who want it: STRC scaled to an $8.5 billion market cap in 9 months, paying $0.96 per share monthly at an 11.50% annualized rate. For the common, the long arithmetic is bitcoin’s own: BTC is up 10,228% over the past ten years, and MSTR has captured that asymmetry, returning 577.46% over the same decade.
Pillar 3: Cycle Survival Surviving bitcoin winters is the entire engineering problem, and Strategy has built for it. A $2.25 billion USD Reserve covers 2.5 years of dividend and interest obligations against $8.17 billion in long-term debt. The ASU 2023-08 fair value accounting standard means quarterly mark-to-market noise no longer threatens covenants the way it once did. Prediction markets agree: traders on Polymarket assign a 92.5% probability that MSTR is not margin called in 2026. Meanwhile, Morgan Stanley, Goldman Sachs, and Citi are launching bitcoin ETFs, trading, custody, and lending, validating the thesis the company built five years before Wall Street arrived.
Where the Thesis Underperforms A multi-year bitcoin bear market is the clear failure mode. Q1 2026 produced a $14.46 billion unrealized loss, BTC has fallen 43.15% over the past year, and MSTR has dropped 66.03% with it. A holder who needed to sell in this window would be punished. That doesn’t change the forever thesis because the structural design, perpetual preferreds, term debt, and the USD Reserve, means time is the variable the company manages. Drawdowns are the cost of entry under this design.
At $127.20, with the stock trading near a price-to-book ratio of 1, the math favors holders who can wait through cycles. The structural design rewards multi-cycle holders.
Is Strategy Safe?The bet has seen limited participation as of this writing, attracting slightly more than $162,000 in wagers.
The State Of Saylor’s StrategyConcerns about the Strategy's financial strength rose after it disclosed Bitcoin sales last week, undermining the "never sell" thesis that bullish investors had counted on.
The sale triggered instant panic, with Bitcoin tumbling below $60,000 to hit its lowest level since October 2024. The company’s shares plunged 40% over the week, and unrealized losses on its BTC holdings have ballooned to a record $12 billion.
As of this writing, Strategy’s Bitcoin reserves are valued at nearly $52 billion, enough to cover 30 months of its dividend and interest obligations. The firm also holds $1 billion in cash reserves, and there are no major debt maturities until 2028.
Critics Aren’t ConvincedEconomist Peter Schiff, meanwhile, predicted doomsday for the Bitcoin treasury company, highlighting a major problem with its capital allocation model.
Grayscale Head of Research Zach Pandl said last week that the firm’s levered business model “is under pressure” and creating problems for the BTC market as a whole.
Price Action: At the time of writing, BTC was exchanging hands at $61,429.92, down 2.24% over the last 24 hours, according to data from Benzinga Pro.
Strategy shares fell 0.36% in after-hours trading after closing 8% lower at $117.02 during Tuesday’s regular trading session. Year-to-date, the stock has plummeted 23%.
Benzinga's Edge Stock Rankings indicate that MSTR has underperformed with a weaker price trend across short-, medium-, and long-term timeframes.
Photo: PJ McDonnell / Shutterstock.com
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The Edge Ranking CollapseThe momentum score, which measures a stock’s relative strength based on price movement patterns and volatility, collapsed from 10.43 to 6.32 for all five funds.
This steep decline squarely places these ETFs in the bottom 10% of the market. Furthermore, all five funds are exhibiting negative price trends across short, medium, and long-term horizons, signaling intense and sustained downward pressure.
BTC Price ActionAt the last check, Bitcoin was trading 3.15% lower at $61,329.31 per coin, as per the last 24 hours. It was lower by 51.37% from its all-time high of $126,198.07. Meanwhile, here is how the five BTC-linked ETFs have performed.
Triggers Behind The PlungeAlthough financially small, the move was symbolically significant, raising concerns about corporate treasury models. Lucy Gazmararian described the current environment as a “classic mid-cycle” bear market.
Compounding the stress was the geopolitical uncertainty in the Middle East, accelerating ETF outflows.
A Silver Lining For Accumulation?Despite the bleeding, some experts view this downturn as a cyclical reset. Analyst Michaël van de Poppe called the recent sell-off “relatively irrational,” suggesting that a clean break above $65,000 could trigger a strong run to $74,000.
Additionally, analyst Ali Martinez noted that the flush-out is creating “premier accumulation windows” in the $53,900 and $43,150 ranges.
While market sentiment remains “incredibly shaky,” CryptoQuant emphasizes that the current “meaningful” stress—with 40% of supply in loss—often precedes deep bear market bottoms.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Key Takeaways Strategy posted $124.3M in Q1 revenues against Bitcoin holdings valued above $64B.MSTR reported a $12.5B net loss after a $14.5B unrealized Bitcoin-related loss.Strategy raised $11.7B via capital markets as external financing remains critical. Strategy Inc.’s (MSTR - Free Report) relatively small operating revenue base is raising concerns about whether its core business can adequately support the risks associated with its rapidly expanding Bitcoin-heavy balance sheet.
In the first quarter of 2026, Strategy generated just $124.3 million in revenues, while its Bitcoin holdings were valued at more than $64 billion. The disparity underscores how heavily the company now relies on Bitcoin price appreciation and capital market activity rather than recurring software revenue growth. Although revenues rose 11.9% year over year, they remain modest relative to the company’s massive exposure to digital assets and growing financial obligations.
The imbalance became more evident during the quarter, when Strategy reported a $14.5 billion unrealized loss tied to Bitcoin price declines, resulting in a net loss of $12.5 billion. At the same time, the company carried $13.5 billion in preferred equity outstanding and $8.2 billion in convertible debt. Cumulative preferred dividend payments have already exceeded $692 million.
MSTR continues to rely primarily on equity and preferred issuances, rather than internally generated operating cash flow, to finance Bitcoin purchases. Year to date, Strategy raised roughly $11.7 billion through capital markets activities.
In May 2026, Strategy’s $1.5 billion debt repurchase reduced its USD reserve, underscoring how MSTR’s relatively small operating revenue base is increasing balance sheet risks as the company remains heavily dependent on Bitcoin performance and external financing. Unless the software business scales meaningfully over time, continued reliance on external financing could place additional pressure on the balance sheet.
How Rivals Compare Against MSTR’s Financial StrategyCoinbase Global (COIN - Free Report) benefits from diversified crypto revenues, stronger liquidity and regulatory engagement versus Strategy, reducing dependence on leveraged Bitcoin accumulation. COIN also maintains sizeable custodial and subscription businesses that support recurring cash flow stability. Compared with MSTR’s concentrated Bitcoin balance sheet strategy, COIN appears operationally stronger, though COIN still faces earnings volatility during prolonged digital asset downturns.
Riot Platforms, Inc. (RIOT - Free Report) competes with Strategy through direct Bitcoin mining exposure and infrastructure ownership rather than debt-driven Bitcoin purchases. RIOT benefits from energy partnerships, scalable mining capacity and operational leverage tied to Bitcoin prices. Still, RIOT faces risks from power costs, mining difficulty and weaker recurring revenue visibility. Compared with MSTR’s leveraged treasury model, RIOT offers asset-backed exposure.
MSTR’s Price Performance, Valuation & EstimatesShares of Strategy have declined 23% in the year-to-date period, underperforming the Zacks Finance sector’s modest 1.2% gain and the Financial - Miscellaneous Services industry’s 9.9% fall.
MSTR’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MSTR appears overvalued, trading at a forward 12-month price-to-sales ratio of 81.81, significantly higher than the sector’s 8.82X. MSTR carries a Value Score of F.
MSTR’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MSTR’s 2026 earnings is pegged at $116.7 per share, unchanged over the past 30 days. The estimate also indicates a sharp year-over-year improvement from a loss of $15.23 per share.
$10,000 dropped into T-REX 2X LONG MSTR DAILY TARGET ETF (NASDAQ:MSTU) on November 1, 2024 is worth about $561 today, and that figure already accounts for the 1-for-10 reverse split that took effect on December 3, 2025. The fund went out at a split-adjusted $67.40 in early November 2024, and it trades at $3 today. MSTU printed a return of negative 94% over that window. From the late-November 2024 intraday peak (which sat well above the split-adjusted open), buy-and-hold drawdown lands closer to 98%.
Crucially, the underlying did not lose anywhere near that much. Strategy (NASDAQ:MSTR | MSTR Price Prediction), the Michael Saylor Bitcoin-treasury vehicle that MSTU is built to track at 2x daily, fell 45% over the exact same November 2024 to June 2026 window, from $229.71 to $127.20. Bitcoin itself fell 43% year over year and trades near $62,500. The leveraged equity wrapper on top of it lost about 70% in a year, and the leveraged ETF wrapper on top of that lost about 96%. That escalation is the entire story.
How a 45% decline becomes a 98% wipeout MSTU promises 200% of MSTR’s return for a single trading day, then it resets at the close and starts the next day from scratch. It uses swap agreements and daily rebalancing, and the issuer’s own materials describe it as a short-term tactical tool because of the risks associated with daily compounding.
Consider what the volatility actually looks like. In just the past month MSTR fell 42%, and MSTU fell 68%. That ratio (call it 1.8x) looks roughly right for a 2x daily product. Stretch the window to one year, though, and MSTR is down 66% while MSTU is down 96%. The ratio is no longer 2x of anything. It is the compounding penalty that leveraged-ETF prospectuses warn about in bold, applied to one of the most volatile large-cap equities in the United States.
There is also a tracking-error problem that sits underneath the volatility drag. Sahm Capital reported in December 2024 that leveraged ETFs tracking MicroStrategy were experiencing significant tracking errors due to the company’s volatile stock and the ETFs’ exposure to swaps and options, and that MicroStrategy’s relatively small size made it challenging for these ETFs to maintain accurate performance, posing heightened risks for investors.
The fund was so successful at gathering assets (over $2.5 billion in AUM in just over two months) that swap counterparties effectively ran out of capacity to write the other side of the trade at scale, which forced compromises in how the daily exposure was achieved. Add in the fund’s 1.05% expense ratio, the fact that it pays no dividend, and the December 2025 1-for-10 reverse split that quietly hid an order-of-magnitude price collapse from the casual chart reader, and you have the full anatomy of a structural value-destroyer.
The stacked-leverage problem Strategy is already a leveraged bet. The company issues convertible debt and preferred stock to buy Bitcoin, which means a holder of MSTR is implicitly running a Bitcoin position financed with debt. When MSTU then promises 2x of MSTR’s daily move, the end buyer is sitting on leverage on top of leverage on top of Bitcoin, with a daily reset on the outermost layer. In a calm uptrend, all three layers compound in the same direction and the screenshots look spectacular. In a choppy downtrend, which is what 2025 and 2026 have delivered, the layers compound against you.
The Reddit and Moomoo posts feel like a small museum exhibit on the psychology of holding a daily-reset product. One user on May 2, 2026 expressed relief and excitement about MSTU finally becoming profitable, mentioning that a slight drop the previous day had caused them mental distress. Another posted on May 14, 2026, “I hope it goes up a little more…[Sob],” the parenthetical doing more work than the sentence. These are people who treated a daily-reset 2x fund like a buy-and-hold expression of a long-term Bitcoin thesis, which the prospectus explicitly tells them not to do.
What you should actually watch The forward look here is the easy part, because the mechanism is structural rather than regime-dependent. MSTU will continue to bleed value over any meaningfully long horizon in which MSTR is volatile, regardless of whether MSTR ends the period higher or lower. Exposure to Bitcoin is available through Bitcoin itself or a spot Bitcoin ETF. If you want a leveraged equity wrapper around Bitcoin, MSTR is itself that wrapper. If you want intraday or multi-day directional torque on MSTR, MSTU is built for exactly that and nothing else, which the issuer’s own language about a short-term tactical tool makes plain.
As long as MSTR trades like a Bitcoin-with-extra-steps small-cap (and right now it absolutely does), the compounding penalty inside MSTU stays brutal. A Bitcoin rally back to the highs would help, but it would not restore the dollars lost on the way down, because daily-reset products do not get those dollars back. They reset at the close, and the calendar moves on. That is the trade-off, and it is the only thing about MSTU that has ever really been worth understanding.
As far as crypto goes, you’d be hard-pressed to find something that comes to mind quicker than Strategy, as Strategy has been a major player with Michael Saylor, of course, being the face of the company. They have had some serious issues as of late, as Bitcoin has struggled, but Strategy Incorporated does see some support in this general vicinity.
If we can recapture the $125 level, it might be good for a pop from here. If it starts to break down from here, maybe significantly below the $119 level, we probably reset near the $100 level. That being said, this is a market that needs to make some type of move to the upside soon, or it’s going to be in very serious trouble.
Bitcoin treasury companies are becoming something much bigger than Bitcoin holders. In this episode of The Daily Wolf, Scott Melker sits down with Strategy President & CEO Phong Le to discuss why the company believes Bitcoin-backed capital markets could reshape financial infrastructure.
