Elon Musk's Space Exploration Technologies Corp. (NASDAQ:SPCX) has completed its initial public offering (IPO) and now all eyes are on the company's next move.
Musk's Mars AmbitionsOne of Musk's goals has been to reach Mars, colonize it and build a city on it. This goal was also part of a performance target for the world's richest man, as revealed by SpaceX's IPO paperwork.
Here's What Prediction Market Is SayingWhile Musk has made reaching Mars one of his biggest goals, prediction markets are not very confident about the trillionaire being able to achieve it.
Data from Kalshi, a federally authorized betting platform, shows that over $101,000 has been bet on the contract "Will Elon Musk visit Mars in his lifetime?"
According to bettors, the probability of Musk reaching Mars in his lifetime is just 13%.
Disclaimer: Kalshi and Benzinga have an existing data collaboration agreement.
What Will Musk Get?If Musk is able to help SpaceX establish a permanent human settlement on Mars with at least one million residents, along with the company hitting a $7.5 trillion valuation, he stands to receive 200 million super-voting restricted shares.
The goal is still a long time away, with Musk himself admitting that it was a long way off.
In February, Musk revealed that SpaceX's Mars timeline was slipping by "five to seven years," so the company could focus on lunar missions first.
Prediction Market Bets On Starlink IPOJust days after SpaceX wrapped up its IPO, the prediction market is now betting on Starlink's IPO. Bettors have placed a very low probability on Starlink going public before June 2027.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Space Exploration Technologies (SPCX +4.36%) blasted off on its market debut on Friday, climbing 19%, then advanced by an additional 19% on its second trading day. All of this has brought SpaceX to a market cap of $2.5 trillion, placing it among the world's largest tech companies.
The SpaceX IPO was the biggest ever, as the company raised $75 billion. But the operation just became even bigger. The company's underwriters exercised an overallotment option early this week, allowing them to buy more than 83 million extra shares -- and this operation brought the total raised to $85.7 billion.
It's clear that many investors are excited about SpaceX, and this could be due to the fact that it operates in the three exciting growth areas of space, artificial intelligence (AI), and connectivity -- and it may also be linked to the idea that Elon Musk, known for huge ambitions, leads the company. Considering all of this, is SpaceX starting an Nvidia-style run? Let's find out.
Image source: Getty Images.
A 1,000% gain So, first, let's zoom in on the performance of Nvidia, the world's No. 1 AI chip designer. The company has seen earnings soar in recent years thanks to this dominance, and as a result, investors have piled into the stock. Nvidia shares have advanced 1,000% over five years. The company represented one of the best ways to bet on the AI boom, and this bet has proven itself to be a winning one.
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Unlike SpaceX, however, Nvidia's share price didn't skyrocket right out of the gate. The company went public back in 1999, but for many years, the stock traded for just a few dollars. It only took off within the past few years amid the excitement about AI -- and as Nvidia's revenue and profit surged.
SpaceX isn't a brand-new company. Like Nvidia, it's been around for decades developing its technology, but so far, its financial picture looks quite different from that of the AI chip giant. While Nvidia is generating more than $215 billion in annual revenue and $120 billion in net income, SpaceX's investments to support its technology developments -- particularly in the AI business -- pushed the company to a loss last year. In 2025, SpaceX's capital expenditures in the AI unit reached $12 billion, and though the company reported total revenue of $18 billion, it finished the year with a loss of $4.9 billion.
Starlink's key role SpaceX is earlier along the growth path than Nvidia, and it's still not clear if and when it may reach certain goals -- such as the development of data centers in space and the transport of people and materials to Mars. Right now, the company's connectivity business, Starlink, is driving revenue, as it brought in $11.4 billion last year on that total of $18 billion. Starlink offers satellite-based internet services and has seen its subscriptions explode higher from customers around the world. It's grown subscriber numbers from 2.3 million in 2023 to more than 10 million as of this March.
But SpaceX's goals are so far-reaching and depend so greatly on innovation and the development of new technology that it might take quite some time for the company to attain them -- and generate significant levels of revenue and profitability. So it's unlikely that the earnings picture, alone, will drive stock performance in the quarters to come.
That said, many investors are buying shares of SpaceX because they believe in the company's ability to reach certain milestones over time -- and they aim to get in early on the stock so that they might fully benefit down the road. It's a risk, and that makes SpaceX a buy for the aggressive investor -- but not for the cautious investor.
Now, let's consider our question: Based on all of this, could SpaceX be starting an Nvidia-style run? In the coming weeks and even months, it's possible. Investors are excited about SpaceX's programs and the possibilities that eventually could result in explosive growth. But if the upcoming earnings reports disappoint or if the company faces any technology setback, it could weigh heavily on stock performance. It's important to keep this in mind before rushing to buy this hot stock post-IPO.
SpaceX’s new options market exploded on Tuesday, giving traders a fresh and far riskier way to bet on the rocket company’s post-IPO surge.
The contracts began trading only days after SpaceX’s blockbuster Nasdaq debut, and demand was immediate.
Call options, which profit when a stock rises, dominated early activity. But the pricing also showed something more complicated than simple excitement.
Wall Street is now bracing for a huge move in either direction, with traders seeing room for another sharp rally while also preparing for a painful reversal.
SpaceX priced its IPO at $135 a share last week, already making it one of the most closely watched listings in market history.
Since then, the stock has climbed roughly 50%, lifting the company’s market value past Amazon and briefly above Microsoft during Tuesday’s trading.
That speed matters, as normally, a stock needs time to settle after going public.
In SpaceX’s case, investors have rushed in almost immediately, helped by the company’s rare mix of space launches, Starlink, defence contracts, artificial intelligence ambitions, and Elon Musk’s personal following.
The rally has also created pent-up demand among investors who either received small IPO allocations or missed out entirely. For them, options offer another route in.
An option is a contract that gives the buyer the right, but not the obligation, to buy or sell a stock at a fixed price before a set date.
A call is a bet on upside. A put is protection, or a bet, against downside. With SpaceX moving so fast, both sides have become expensive.
The scale of Tuesday’s options debut was striking. Around 1.8 million SpaceX options contracts changed hands, far above Meta’s previous first-day options record in 2012.
Calls outpaced puts, showing that bullish demand remained strong even after the stock’s dramatic run.
Susquehanna said SpaceX had the fifth-highest call volume of any stock that day.
Data from Trade Alert indicates that SpaceX options were the third-most heavily traded single-stock contracts overall, behind only Tesla and Nvidia.
“It’s unusual in history for companies to have options trade so quickly,” Mike Khouw, chief strategist at YieldMax ETFs, told Yahoo Finance.
“This is the third busiest single stock options contract trading today.”
The bigger story was not just volume. It was what the options prices implied about future movement.
Susquehanna estimated that the market was pricing roughly a 15% chance that SpaceX rises another 50% over the next three months.
It was also pricing a similar chance that the stock loses half its value over the same period.
That is what traders mean when they talk about “tails.” It refers to extreme outcomes at either end of the range.
In this case, the market is saying SpaceX could keep ripping higher, or crack sharply, and neither outcome looks remote.
Also read- SpaceX stock soars after IPO: Will it follow the Circle, Figma, Klarna path?
That two-sided risk is why derivatives strategists are sounding cautious, even as volume booms.
“The tails look too expensive to buy, but they also look too dangerous to sell,” Chris Murphy, a strategist at Susquehanna, said in comments cited by CNBC.
The line captures the problem facing traders. Buying options is costly because implied volatility is high. Implied volatility is the market’s estimate of how violently a stock may move.
But selling options can be even riskier, because a sharp move either way could leave sellers exposed to steep losses.
On the upside, call buyers are betting SpaceX can repeat the kind of momentum seen in Tesla during its most speculative phases.
On the downside, put demand reflects concern about valuation, lock-up expiry risk, and the possibility that early excitement fades once more shares become available.
Reuters reported that one large September trade appeared to hedge against the stock falling below $205, likely linked to future share supply after IPO lock-up restrictions ease.
Sceptics say the valuation already leaves little room for error.
“Investors rarely make money buying stocks valued at over 100x revenue,” short seller Jim Chanos told Yahoo Finance, while still acknowledging that Starlink is “a real business.”
SpaceX shares rose 4% in premarket trading on Wednesday, as the Elon Musk-led company extended a remarkable rally that's seen the stock surge around 62% since a blockbuster IPO on Friday.
Consistent gains for SpaceX this week pushed its market cap above Amazon on Tuesday, and it briefly surpassed Microsoft to become the fourth-largest company by valuation in the U.S.
SpaceX had a market cap of $2.65 trillion at close on Tuesday.
Investors are betting big on the promise of founder and CEO Musk's ability to drive long-term returns.
Musk posted on X on Sunday that the company "might be able to reach approximately" $1 trillion revenue in 2030.
SpaceX posted a $4.9 billion net loss in 2025, and it lost $4.28 billion in the first quarter of this year.
The lofty valuation for the company that has become dominant in satellites through its Starlink service and reusable rockets has raised questions about the its ambitious growth plans.
Investors are "trading the story, they're trading the action, they're trading the excitement, they're trading Elon Musk, but at some point the rubber meets the road in terms of the fundamentals having to match up with that excitement," Peter Boockvar, chief investment officer at One Point BFG Wealth Partners, said on CNBC's "Squawk Box Asia."
"If they can deliver, then the upside is certainly there, but the valuation is so enormous that the company is going to really have to show itself in growing into that valuation," he added. "I think that that's going to take at least a couple of years."
CHEVY CHASE, Md., June 16, 2026 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL), the nation’s leading builder of luxury homes, today announced a select number of move-in ready townhomes are now available in its Chevy Chase Crossing community, located just a 10-minute drive from Washington, D.C. The Sales Center is open daily at 3530 Manor Rd in Chevy Chase, Maryland.
Chevy Chase Crossing offers new luxury townhomes ranging from approximately 2,400 to over 3,600 square feet. Two collections of modern home designs feature rooftop terraces, two-car garages, open kitchens and great rooms, luxurious primary bedroom suites and spacious secondary bedrooms, convenient bedroom-level laundry rooms, flex rooms, and elevator options. Homes are priced from $1.12 million.
“Chevy Chase Crossing offers the rare opportunity to own a beautiful new Toll Brothers home that is move-in ready, with design options selected by a professional designer at the Toll Brothers Design Studio,” said Nimita Shah, Division President of Toll Brothers in D.C. Metro. “Our quick move-in homes are an incredible option for buyers who want to begin living in their new dream home as soon as possible.”
Located along the future Purple Line transit station, Chevy Chase Crossing offers unmatched accessibility to major commuting routes, including I-495 and Connecticut Avenue. Residents will enjoy proximity to Chevy Chase Lake retail, Bethesda Row, The Shops at Wisconsin Place, and Chevy Chase Pavilion, as well as abundant dining, entertainment, and recreational options. The community is also assigned to highly rated Montgomery County Public Schools.
For more information on Chevy Chase Crossing, call 866-232-1718 or visit ChevyChaseCrossing.com.
About Toll Brothers
Toll Brothers, Inc., a Fortune 500 Company, is the nation’s leading builder of luxury homes. The Company was founded in 1967 and became a public company in 1986 with common stock listed on the New York Stock Exchange under the symbol “TOL.” Toll Brothers builds new homes and communities in over 60 markets across the United States, serving first-time, move-up, active-adult, and second-home buyers. The Company also operates its own architectural, engineering, mortgage, title, land development, smart home technology, landscape, and building components manufacturing businesses.
Toll Brothers was named the #1 Most Admired Home Builder in Fortune magazine’s 2026 list of the World’s Most Admired Companies®, the ninth year the Company has achieved this honor. Toll Brothers has also been named Builder of the Year by Builder magazine and is the first two-time recipient of Builder of the Year from Professional Builder magazine. For more information visit TollBrothers.com.
RENO, Nev., June 16, 2026 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL), the nation's leading builder of luxury homes, today announced the final opportunity for home shoppers to purchase a new home at Regency at Caramella Ranch, a premier 55+ active-adult community in South Reno, Nevada. Fewer than 15 homes remain available at the community, located at 2433 Gary Mayo Court in Reno.
Regency at Caramella Ranch is a staff-gated 55+ community with mountain and city views in a prime South Reno location offering an exceptional lifestyle for active adults. Luxury single-level home designs range from approximately 1,680 to 2,760+ square feet with 2 to 3 bedrooms, 2- to 3-car garages, and covered patios for indoor/outdoor living. Flexible home design options include dual primary bedroom suites, offices, dens, and more. Remaining move-in ready and quick move-in homes are priced from the upper $600,000s.
The community provides a low-maintenance lifestyle with access to a wide range of resort-style amenities, including an expansive clubhouse featuring an onsite Lifestyle Director who maintains a schedule of recreational and social events, an indoor lap pool, spa, and fitness center. Outdoor amenities include a multi-tiered resort-style pool, pickleball courts, bocce courts, an amphitheater, and an all-seasons wraparound lounge deck for enjoying the panoramic mountain and city views.
"Regency at Caramella Ranch is an extraordinary community, and we are thrilled to announce the final opportunity for home shoppers to purchase one of the remaining luxury homes to enjoy the perfect combination of luxury living and a vibrant lifestyle, all in a highly desirable location with no state income tax," said Donna O'Connell, Division President of Toll Brothers in Reno. "This community has been meticulously designed with thoughtful details, exceptional amenities, and stunning views, making it a truly special place to call home. We invite prospective home shoppers to tour and experience Regency at Caramella Ranch before it is too late."
Located within an hour of Lake Tahoe and just minutes from The Summit Mall, golf courses, fine dining, and entertainment, Regency at Caramella Ranch offers convenient access to all that Reno has to offer.
For more information, visit TollBrothers.com/NV or call 855-400-8655.
About Toll Brothers
Toll Brothers, Inc., a Fortune 500 Company, is the nation’s leading builder of luxury homes. The Company was founded in 1967 and became a public company in 1986 with common stock listed on the New York Stock Exchange under the symbol “TOL.” Toll Brothers builds new homes and communities in over 60 markets across the United States, serving first-time, move-up, active-adult, and second-home buyers. The Company also operates its own architectural, engineering, mortgage, title, land development, smart home technology, landscape, and building components manufacturing businesses.
Toll Brothers was named the #1 Most Admired Home Builder in Fortune magazine’s 2026 list of the World’s Most Admired Companies®, the ninth year the Company has achieved this honor. Toll Brothers has also been named Builder of the Year by Builder magazine and is the first two-time recipient of Builder of the Year from Professional Builder magazine. For more information visit TollBrothers.com.
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Anthropic is far from the first first Silicon Valley giant to trigger US government export controls. Apple turned the prospect of a 1999 export limit on the Power Mac G4 into an ad campaign. JOHN G. MABANGLO / AFP via Getty Images Sometimes, the US government's concerns that a powerful new tech product could fall into the wrong hands can be a marketing opportunity. Just look at Steve Jobs and Apple back in 1999.
In August of that year, Jobs, who was then Apple's interim-CEO, took the stage to unveil the company's new desktop "supercomputer": the Power Mac G4. Jobs called it "the most powerful personal computer ever brought to market," CBS News reported at the time.
The only issue was all that computing power technically meant that the device crossed the threshold that would trigger US export controls limiting which countries Apple could ship the computer to.
Jobs highlighted the distinction in the wake of the computer's unveiling.
"The Power Mac G4 is so fast that it is classified as a supercomputer by the US government, and we are prohibited from exporting it to over 50 nations worldwide," Jobs said the Apple Expo, CNN reported in September 1999.
The restriction Apple faced at the time stemmed from a Government Accountability Office report that called 50 countries a concern "for military or proliferation reasons," with seven others facing near-embargo restrictions on computer exports.
Jobs told the audience that the new Macs, capable of operating at up to one gigaflop, could not be exported to the nations in that report, including China, Iraq, and North Korea.
Now — as Anthropic faces US export restrictions for its Fable 5 and Mythos 5 AI models — Jobs' computer unveiling and subsequent marketing have renewed relevance.
Behind the scenes, Apple pushed to ease the US restrictions (and was eventually successful). In public, Apple leaned into the US government's concerns in an ad campaign recently resurfaced by Tom's Hardware.
Fable isn't the first.
In 1999 the department of defense blocked exports of the PowerMac G4 for crossing the 1 gigaflop threshold.
Steve Jobs turned it into an ad. pic.twitter.com/yHoyJjpSke
— Justin Schroeder (@jpschroeder) June 13, 2026 The commercial showed tanks surrounding the Power Mac G4 as a voiceover declares that, "For the first time in history, a personal computer has been classified as a weapon by the US government."
The commercial ended with a jab at Intel-powered PCs: "Well, they're harmless," the voiceover said.
Apple's 1999 run-in with export controls was an earlier example of Washington treating cutting-edge commercial technology as a national-security concern.
Today, there's an AI-flavored twist that's landed Anthropic into very real hot water. Over the weekend, the Trump administration ordered Anthropic to restrict foreign nationals' access to its Fable 5 and Mythos 5 models, citing national security concerns related to a possible jailbreak to get around safeguards.
Anthropic disabled the AI models for all customers while it works to clear up what it described as a misunderstanding from the White House. The company has disputed the severity of the issue that was originally flagged to the White House.
Anthropic has long championed its focus on AI safety, and earlier this year said its Mythos Preview model was too powerful to release widely due to its hacking abilities, instead offering early access to selected partners to help bolster cybersecurity safeguards.
The severity of the White House's Anthropic order means it's not exactly an apples-to-apples comparison (pun intended) to Steve Jobs and Apple in 1999. After all, Apple was still able to launch and sell its Power Mac G4s.
But if Anthropic manages to smooth over its latest clash with the US government and re-launch its Fable 5 and Mythos models, Jobs and Apple demonstrated decades ago that having a product so powerful it raises government export concerns doesn't have to be all bad.
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Ben Shimkus You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Ben Shimkus is a reporter for the Business News desk. He writes about cars, transportation, retail, and jobs. Ben's reporting has appeared in Rolling Stone, The Verge, Automotive News, USA Today, AutoBody News, LGBTQ Nation, TopSpeed, and Out Magazine. He's also held staff writing positions at The U.S. Sun and the Daily Mail. He graduated from NYU with a Master's in journalism in 2024. Email Ben at [email protected] or message him privately on Signal at bshimkus.41.
Apple (AAPL, Financials) is facing another regulatory headache in Europe, this time in Italy. Italy's competition regulator opened a probe into Apple's cloud services to review whether the company is following interoperability rules under the European Union's Digital Markets Act.
Put simply, regulators want to know whether Apple is making it fair and practical for rival services to work with its ecosystem.
The investigation is still at an early stage, and no penalty has been announced. But for Apple, it adds to a growing list of European regulatory challenges around how its platforms operate.
For investors, this is not likely to move earnings right away. The bigger issue is whether repeated EU scrutiny forces Apple to change parts of its services business or raises compliance costs over time.
The next thing to watch is whether Italian regulators ask Apple to make changes to its cloud practices.
Apple AAPL faces a new antitrust probe in Italy over whether its iOS and iPadOS systems give iCloud an unfair edge over rival cloud storage services.
Italy's competition regulator said it is investigating whether Apple limits the ability of third-party cloud providers to work with key hardware and software features under the European Union's Digital Markets Act. The issue centers on full device backups, where the regulator said rival cloud services appear unable to use the same iOS and iPadOS components available to Apple's own iCloud.
The case is notable because it is Italy's first investigation under the DMA, a law designed to stop major tech platforms from using control of operating systems and app ecosystems to disadvantage competitors. The regulator said its findings will be sent to the European Commission, which has broader enforcement power under the law.
Apple's Indian supplier Tata Electronics on Tuesday said a state pollution control board has dropped its scrutiny of the company's iPhone components plant after it addressed concerns about contamination.
The first half of 2026 is drawing to a close, and shares of Apple (AAPL +0.95%) have turned in a disappointing performance so far.
The 9% jump in Apple stock this year is underwhelming compared to the 15% jump seen in the tech-focused Nasdaq Composite index. However, the stock's fortunes could turn around in the second half of the year, driven by the arrival of a foldable iPhone that should help Apple tap into a fast-growing smartphone niche.
Let's look at the reasons why this new product could become a major catalyst for Apple.
Image source: The Motley Fool.
Apple's rumored foldable iPhone is arriving at the right time Recent leaks suggest that Apple could indeed launch a foldable iPhone in September this year. There are references to foldable features in the beta code of Apple's latest smartphone software -- iOS 27. Meanwhile, Bloomberg's Mark Gurman predicts that Apple could launch the foldable iPhone in just two colors, while noted Apple analyst Ming-Chi Kuo of TF International Securities suggests the same.
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Given that leaks about Apple's products tend to be accurate, it won't be surprising to see it indeed launch a foldable iPhone this year. Moreover, it is high time Apple moved into this space. After all, several competitors, including Samsung, have been offering foldable phones for a long time. Apple has been late to this niche, but this may just be the right time to enter the foldable smartphone market.
According to IDC, the foldable smartphone market grew by an estimated 10% in 2025, accelerating from the 3.9% jump seen in 2024. The research firm expects a much larger jump of almost 30% in foldable smartphone sales in 2026. What's more, IDC anticipates foldable smartphone shipments to jump by 21.1% in 2027, 13.6% in 2028, and 9.3% in 2029.
That's why Apple needs to enter this space without any further delay. Moreover, Apple's position as one of the leading smartphone vendors globally will put it in a solid position to unlock a new growth opportunity in foldables. IDC points out that Apple controlled 21% of the global smartphone market in Q1, just behind Samsung's 21.2% market share.
However, Apple's shipments increased by 4.4% year over year, outpacing Samsung's 2.9% growth. Meanwhile, the overall smartphone market declined by 2.9% in Q1, suggesting that Apple's strong brand value is driving sales in a difficult market.
Adding a foldable iPhone to the product portfolio could drive stronger sales growth. Also, Apple is expected to price the foldable iPhone at $1,999, as reported by Forbes. Apple's strategy of targeting a niche user base with this high-margin product could give its bottom line a nice boost.
The tech giant's earnings growth could exceed expectations Apple's earnings are expected to grow by 17% in the current fiscal year (which ends in September), followed by slower growth of 10% in fiscal 2027. However, the premium pricing of the foldable iPhone and a potential jump in Apple's share of this fast-growing space could help outperform expectations.
IDC forecasts that Apple could corner 22% of the foldable smartphone market this year, and its market share could increase to 34% by 2029. The premium pricing of the foldable iPhone could help Apple grow earnings faster than market expectations. That could set this tech stock up for solid gains in the second half of the year, and in the long run.
WICHITA, Kan., June 16, 2026 (GLOBE NEWSWIRE) -- Legend Senior Living, a Wichita-based senior housing provider, has welcomed Apple Blossom Senior Living in Moon Township, Pennsylvania as the newest community in its growing portfolio, marking another significant step in the company's strategic growth across the Commonwealth.
With the addition of Apple Blossom Senior Living, Legend now operates 78 senior living residences across eight states and brings its personalized approach to senior living to even more families throughout Pennsylvania.
Located in Moon Township near Pittsburgh, Apple Blossom Senior Living offers a full continuum of lifestyle and care options, including Independent Living cottages, as well as Personal Care and Memory Care options. The community is known for its welcoming environment, personalized support, and commitment to helping older adults live with purpose, dignity, and independence.
"The addition of Apple Blossom represents an exciting milestone for Legend as we continue to expand our presence in Pennsylvania," said Matt Buchanan, President and Co-CEO of Legend Senior Living. "Pennsylvania has become an increasingly important market for us, and Apple Blossom is a wonderful addition to our growing family of communities. We are honored to serve the residents who call Apple Blossom home and look forward to building upon the strong reputation and relationships that already exist within the community."
This expansion further strengthens Legend's position as a leading provider of senior living services throughout Pennsylvania, where the company has continued to invest in communities that offer exceptional experiences for residents and families.
Residents of Apple Blossom Senior Living can expect a seamless transition and continued commitment to quality care, meaningful engagement, and personalized services. Legend's family-led approach emphasizes individualized support, strong relationships, and creating environments where older adults can thrive physically, socially, emotionally, and spiritually.
About Legend Senior Living
Legend Senior Living is a privately held senior housing and services company based in Wichita, Kansas. Legend owns and operates more than 75 residences — spanning Independent Living, Assisted Living, Memory Care and Personal Care — in Colorado, Florida, Kansas, Missouri, New Jersey, Oklahoma, Pennsylvania, and Texas. Founded more than 25 years ago, Legend Senior Living remains family-owned and family-led, with a long-standing reputation for operational excellence, innovative programming, and resident-centered care.
www.legendseniorliving.com
FOR MORE INFORMATION:
Rebecca Butler
Vice President of Marketing & Brand Strategy
Legend Senior Living [email protected]
Phone: 316-616-6288
Apple Blossom Senior Living
www.appleblossomseniorliving.com
125 Apple Blossom Way
Moon Township, PA 15108
412-539-6446
Seth Fiegerman, Bloomberg AI Team Leader, joined Paul Sweeney and Scarlet Fu on Bloomberg Intelligence to discuss SpaceX's deal to takeover Cursor in a deal that values the artificial intelligence coding startup at $60 billion. -------- Watch Bloomberg Radio LIVE on YouTube Weekdays 7am-6pm ET Saturday & Sunday 7am-10am ET WATCH HERE: http://bit.ly/3vTiACF Follow us on X: https://twitter.com/BloombergRadio Subscribe to our Podcasts: Bloomberg Daybreak: http://bit.ly/3DWYoAN Bloomberg Surveillance: http://bit.ly/3OPtReI Bloomberg Intelligence: http://bit.ly/3YrBfOi Balance of Power: http://bit.ly/3OO8eLC Bloomberg Businessweek: http://bit.ly/3IPl60i Listen on Apple CarPlay and Android Auto with the Bloomberg Business app: Apple CarPlay: https://apple.co/486mghI Android Auto: https://bit.ly/49benZy Visit our YouTube channels: Bloomberg Podcasts: https://www.youtube.com/bloombergpodcasts Bloomberg Television: https://www.youtube.com/@markets Bloomberg Originals: https://www.youtube.com/bloomberg Quicktake: https://www.youtube.com/@BloombergQuicktake
Apple’s plan to change a privacy feature that lets paying customers hide their real email addresses when creating online accounts could make it easier for apps and websites to block anonymous sign-ups.
Apple’s Hide My Email is an iCloud+ feature that generates anonymous email addresses under the @icloud.com domain, which then forward messages to a person’s real email address. The reason these privately generated email addresses work is because they cannot be distinguished from regular Apple users, whose email addresses also use the @icloud.com domain.
Apple said in a note to developers on Monday that in the coming weeks the company will move its anonymously generated email addresses to @private.icloud.com, effectively making it easier for apps and websites to know that an email address is private and block users from signing up.
Existing addresses will continue to function and forward mail without interruption, Apple said in the note to developers. The company added that app and email providers would have to update their filtering to ensure that emails to customers who rely on the feature continue to go through.
Several Apple users on Reddit criticized the change to the email domain, saying it would make it more difficult to use the service.
Apple did not respond to a request for comment from TechCrunch about the change, or explain why it made the change.
Earlier this year, TechCrunch reported that Apple turned over the real account information of a user who generated an anonymized email address using Hide My Email to send an allegedly threatening email to the girlfriend of the FBI director Kash Patel.
The Trump administration has made efforts over the past year to unmask anonymous accounts, including those of Trump’s critics, by using subpoenas to demand that tech companies turn over information about their users.
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Since its April 29 initial public offering, PSUS has been on an aggressive buying spree.
The portfolio will also feature four newly acquired, undisclosed companies set to be revealed in the firm’s upcoming second-quarter report.
Chasing ‘Old-Fashioned’ ValueWhile the broader market fixates on semiconductor hype and emerging startup IPOs, Ackman is finding immense value in established mega-caps. Speaking at the All-In Liquidity Summit with NYSE, he noted that market momentum has unfairly shifted away from foundational tech leaders.
“A lot of attention has been taken away from companies that people think are almost old-fashioned,” Ackman explained to the summit crowd.
“Meta is an old-fashioned company today. Microsoft is an old-fashioned company today, and therefore, they’re less interesting. That’s not where the excitement is. The result of that is, you know, those stocks are very cheap,” he explained.
Ackman capitalized on this shifting sentiment, pointing out that his fund is now heavily invested in the “highest quality durable growth companies in the world,” which he believes are trading near historic valuation lows.
The ‘Double Discount’ OpportunityDespite its high-quality underlying portfolio, the PSUS stock, which is a closed-end listed fund, has lagged since its debut, currently trading at a roughly 20% discount to its net asset value (NAV) due to what Ackman attributes to short-term IPO technical factors.
However, the billionaire investor views this slump as a rare entry point. “A buyer of the stock at today's price is acquiring the current portfolio at a double discount,” Ackman stated.
To prove his conviction, Ackman and his Pershing Square affiliates have gone “all-in,” acquiring more than 10 million shares—totaling over $500 million—in the open market and IPO. “We have put our money where our mouth is,” he declared.
PSUS Drops Over 5% Since ListingThe stock has declined by 5.69% since its listing in April. However, it was up 4.26% over the last five sessions and 4.25% lower over the last month. It was up by 3.05% in premarket on Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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The Threads app icon on a smartphone in this illustration taken October 27, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab
June 16 (Reuters) - Meta Platforms (META.O), opens new tab said on Tuesday its Threads app had reached 500 million monthly active users, nearly three years after the social network platform was launched as a competitor to Elon Musk's X.
The social media company also announced new customization and community features on the platform.
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Here are some details:
Threads is rolling out "Your Algo", a feature that lets users privately control the content they see in their feeds. It is available in the United States, Canada, the UK, Australia and New Zealand.
Meta is expanding its Communities feature, allowing users to discover and participate in topic-focused groups more easily.
The company said communities have become a major driver of engagement on Threads. Meta is adding a dedicated Communities hub and new discovery tools designed to help users find conversations centered on specific interests.
The milestone comes as Meta continues to expand Threads' advertising business, putting the platform in more direct competition with X for digital advertising dollars.
Meta launched Threads in July, 2023.
Reporting by Harshita Mary Varghese in Bengaluru; Editing by Tasim Zahid
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Mike Schroepfer, former CTO of Meta and founding partner of Gigascale Capital - a venture firm making early-stage bets on companies focused on climate impact - says SpaceX is the only company capable of building orbital data centers. He also shares how ocean data centers are 100x cheaper than orbital ones.
Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) has rolled out new AI-powered search capabilities across its apps as part of a broader push into AI-native products, with Bank of America analysts saying the update could mark an early step toward a larger search and monetization opportunity within the company’s ecosystem.
Bank of America wrote in a note that Meta’s new “AI Mode” search feature on Facebook allows users to find answers based on public posts across Meta platforms, including Groups and Reels. The feature uses Meta AI, powered by the MuseSpark large language model, to generate responses grounded in publicly shared user content, which the company says is intended to surface real-world perspectives and experiences rather than conventional web-based search summaries.
Alongside the search update, Meta introduced new AI creative tools, including photo and video editing features such as collage templates and automated video montage generation from camera roll content. The company also added AI-driven photo presets that allow users to modify attributes such as clothing, hair, and accessories.
Bank of America described the launch as an “interesting initiative” that leverages real-time public content to improve search relevance, particularly for queries related to products, services, and experiences where Meta’s social graph could provide differentiated context.
The firm added that incremental search activity could also generate new intent signals, potentially improving ad relevance and targeting within Meta’s advertising ecosystem.
The analysts believe that AI-enabled search could represent a long-term growth avenue if Meta is able to drive adoption at scale across its user base.
In a scenario analysis, Bank of America estimated that if Meta’s roughly 3.5 billion daily active users averaged one additional query per day through AI Mode, the feature could generate around 1.3 trillion annual queries. If 20% of those queries were commercial in nature and monetized through advertising, the firm suggested this could translate into approximately 50 billion ad clicks and roughly $15 billion in incremental revenue at a $0.30 cost-per-click assumption, or about 5% of consensus 2027 revenue estimates.
The firm also noted that AI Mode could serve as an entry point into more agentic use cases over time, potentially allowing Meta to play a larger role across the consumer journey from intent formation through to transaction within its closed ecosystem.
Bank of America maintained a ‘Buy’ rating on Meta, pointing to continued product innovation in AI as a key driver of future engagement and monetization.
The firm highlighted upcoming catalysts including consumer agentic product launches, more advanced large language models, the Connect conference in September 2026, and additional detail on Meta’s enterprise AI strategy.
Shares of Meta were little changed at $596 in the early afternoon on Tuesday, down almost 10% so far this year.
It’s hard to be genuinely bullish on stock markets these days, even as the AI revolution moves ahead and models like Claude Code and Claude Mythos look to transform the way we think about the software. Indeed, the powerful new AI tools sparked the SaaS-pocalypse, and the big question is whether we’ll be in for more AI-driven apocalypses in other parts of the economy as the new technology looks to threaten business models while creating new opportunities for investors.
Any way you look at it, the degree of uncertainty is at a high point with the rise of new kinds of AI models, many of which might need to stay behind closed doors for a while longer before the right safety guardrails can be put into place.
Add concerns about the closed models falling into the wrong hands, and perhaps more profoundly disruptive frontier technologies might hover in the background for a while longer, at least until the technology is guaranteed to be behind lock and key.
If the latest and greatest technology becomes less available to everyday users, the big question is what could happen next in the AI boom and whether investors will grow fatigued with the AI trade. Despite the profound, real applications of models like Mythos, questions linger about whether the massive CapEx being spent by hyperscalers will prove a smart investment.
At the same time, there are a lot of smart people (Michael Burry is just one) who view the AI boom as a bubble and one that could burst. History certainly seems to suggest such a revolutionary technological bull run won’t end all too well.
Meta Platforms: A historic discount in a hot AI market? But, in my view, I think it’s hard to paint a bubbly picture with too broad a brush, especially when you’ve got a company like Meta Platforms (NASDAQ:META | META Price Prediction) trading for 18.0 times forward price-to-earnings (P/E) with more than enough cash to spend aggressively.
While Meta’s newest model, Muse Spark, may face an uphill battle as a slew of other models compete for consumer engagement, I do think that the behind-the-scenes wins are most powerful for a company like Meta. In terms of invisible AI or monetization in the background, I think a company like Meta really does stand tall.
Perhaps the big money lies internally (think digital labor and automation) and not just in selling chatbots and agentics to consumers. Add the tremendous opportunity to sell agentics to the enterprise, and I think the market might be missing something with Meta as it moves fast, stays agile, and maintains its optionality.
Finally, it’s hard to know what the next big leap will be as frontier research goes above and beyond scaling. With a supercharged research team and deep pockets, I think owning Meta just makes sense, if not as a play on Zuckerberg’s leadership, perhaps as another major diversifier for an AI portfolio looking to have as many horses in the race as possible.
With Meta’s recent AI reorganization hitting suddenly and causing internal volatility, perhaps investors are too quick to dismiss the firm as it adopts a leaner, more aggressive strategy than some of its peers in the space. Add new AI features rolled into existing products, including Facebook’s AI Mode, into the equation, and it certainly does feel like Meta is taking a page out of the playbook of firms that have already found early wins in this AI boom.
The bottom line So, is AI a bubble or the real deal? The technology itself is very real. But in terms of the stocks playing the revolution, I’d argue that there exist ample opportunities as well as traps.
As an investor, it’s vital to put in the due diligence to ensure one’s betting on an appropriately-priced secular winner, rather than overpaying after a cyclical AI gainer that might already have a supercycle priced in. In terms of opportunities, perhaps the hyperscalers and not the crowded picks-and-shovels plays are where the generational moats are.
I keep hitting the buy button on Meta Platforms (NASDAQ:META | META Price Prediction), and the louder the market panics about the company’s $125 billion to $145 billion capital expenditure plan, the more shares I add. The stock sits at $593.48, down 9.94% year to date and 12.75% over the past year. To me, that is a sale tag on the most profitable advertising business ever assembled.
The thesis is simple. Mark Zuckerberg is reallocating capital away from human overhead and into compute infrastructure that compounds. He is directing resources into high-yield compute infrastructure that compounds returns. That changes the unit economics of every ad served to 3.56 billion daily users across Facebook, Instagram, WhatsApp, Messenger, and Threads.
The Receipts First, the cash machine is healthy under the hood. In fiscal 2025, Meta generated $115.8 billion in operating cash flow and still produced $46.1 billion in free cash flow after spending $69.7 billion on capital expenditures. The company self-funded the entire AI buildout from operations and returned $31.6 billion to shareholders through dividends and buybacks in the same year. No debt raise required.
Second, the engine is accelerating. Q1 2026 revenue came in at $56.3 billion, up 33.08% year over year, with EPS of $10.44 against a $6.6587 estimate. That was the fifth consecutive EPS beat. Ad impressions rose 19% while average price per ad climbed 12%. Volume and pricing are expanding together, which only happens when a platform owns its customers. The Q1 operating margin held at 41%.
Third, I am paying a fair multiple for that quality. Meta trades at a P/E of 21 with a forward P/E of 18, a PEG of 0.819, return on equity of 32.9%, and an operating margin of 40.6%. Analyst consensus price target sits at $827.32, with 49 Buy and 8 Strong Buy ratings against zero Sell calls. That is a quality compounder valued like a value stock.
The Honest Risk Reality Labs lost $19.2 billion in 2025 and another $4.03 billion in Q1 2026. Capex guidance climbing to $125 to $145 billion stacks depreciation pressure on top of that. Add youth-related litigation with trials scheduled in 2026 and EU advertising rules, and there are real ways this thesis takes damage. What keeps me buying is that the core ad business is funding all of it while still throwing off tens of billions in free cash, and CFO Susan Li was explicit that 2026 operating income will land above 2025.
Why The Buy Button Stays Active Zuckerberg told investors “Spark is just one step on that scaling ladder, and we are already training even more advanced models.” I believe him because the cash flow statement believes him. The advertising monopoly funds the AI buildout, the AI buildout sharpens the ad targeting, and 3.56 billion people show up every day to feed both flywheels.
So long as the ad engine keeps printing and Zuckerberg keeps converting operating cash into compute, my finger stays on the buy button.
ToplineThreads, Meta’s text-based social media platform that Forbes previously reported surpassed Elon Musk’s X in daily active users, reached a milestone of 500 million monthly active users three years after launch, the company said Tuesday.
Forbes previously reported in September that Threads had surpassed X in its number of daily active users. (Photo Illustration by Justin Sullivan/Getty Images)
Getty Images
Key FactsThreads, launched in 2023 and considered a competitor to X after Musk’s controversial takeover of Twitter, has grown rapidly and surpassed X in terms of daily active users in September, Forbes reported at the time.
Meta credited its “communities” feature for the platform surpassing the 500 million monthly active users milestone, which allows users to join spaces where they can discuss topics with others, like the NBA, books or movies.
Meta said Tuesday it would enhance the “communities” feature, advancing it out of the beta stage while updating visuals and adding a communities hub to the main menu of users’ feeds.
Meta also said it would unveil “Your Algo,” a feature that lets users indicate what topics they would like to see more or less of.
when did threads surpass x?Threads surpassed X in terms of daily active users on mobile devices worldwide in September, according to Similarweb data shared with Forbes at the time. Then, Threads barely edged out X, recording 130.2 million average daily users over X’s 130.1 million for the week ending Sept. 21. But since then, Threads has held a larger lead, with Threads logging 135.7 million average daily active users as of April, ahead of X’s 126.9 million average daily active users, according to Similarweb data. X has held a lead over Threads in the United States, though, recording 21.3 million average daily active users in the United States in April, ahead of Threads’ 18.3 million average daily active users.
how has threads built a large user base?Threads benefits from close integration with Meta’s flagship platforms, Facebook and Instagram. Mark Mahaney, senior managing director and internet research analyst at Evercore ISI, previously told Forbes Threads’ integration with Instagram, which CEO Mark Zuckerberg said in September has 3 billion monthly active users, is a “big advantage,” because Meta can “siphon you off from that massive platform over to Threads.” Threads may also be better than X at showing users targeted ads, Mahaney said, because Threads may already know information about its users from Meta’s other platforms, which he also said may be a “negative development for the attractiveness of X to advertisers.”
key backgroundThe close competition between X and Threads for users is the latest in a longstanding rivalry between tech billionaires Elon Musk and Mark Zuckerberg. The two have traded barbs as early as 2016, when Zuckerberg said he was “deeply disappointed” a SpaceX rocket carrying a Facebook satellite exploded. SpaceX called the explosion an “anomaly,” while Musk, years later, said the incident was “my fault for being an idiot.” Musk also suggested Zuckerberg has a “limited” understanding of artificial intelligence in a 2017 jab. The launch of Threads caused tensions to resurface, and the two publicly discussed fighting in a cage match organized by UFC president Dana White, which has never materialized. “I’m up for a cage match if he is lol,” Musk tweeted in 2023 in response to a tweet about Threads’ impending launch. Musk backed out, claiming he needed surgery, and Zuckerberg said if Musk ever gets “serious about a real date and official event, he knows how to reach me.” Musk criticized Threads as “just Instagram minus pics, which makes no sense,” while lawyers representing Twitter threatened to sue Meta shortly after Threads’ release for allegedly stealing trade secrets.
forbes valuationMark Zuckerberg, CEO and co-founder of Meta, is worth $203.6 billion as of Tuesday morning, according to Forbes estimates, making him the No. 7 richest person in the world. He owns about 13% of Meta’s stock. Elon Musk, the world’s richest person and first trillionaire, is worth $1.4 trillion, Forbes estimates as of Tuesday morning. Musk, the co-founder of companies including SpaceX and Tesla, became the world’s first trillionaire last week when SpaceX went public.
further readingThreads Finally Passes X—Zuckerberg’s 2-Year-Old Platform Passes Musk’s In Daily Users (Forbes)
Musk’s Net Worth Hits $1.4 Trillion—SpaceX Passes Amazon As Fifth-Largest Company (Forbes)
Key Takeaways Reddit posted Q1 2026 revenue growth of 69%, with advertising revenue rising 74% year over year. Reddit expanded its Shopify integration globally, streamlining ads, product syncing and tracking. META Q1 ad revenues increased 33%, but rising AI costs and regulatory scrutiny remain challenges. Reddit (RDDT - Free Report) and Meta Platforms (META - Free Report) are leading social media platforms that monetize user engagement through digital advertising. While RDDT is an emerging social media platform, gaining traction with community-driven advertising, Meta leads the broader social networking space through platforms like Facebook and Instagram.
RDDT or META — Which of these Digital Advertising stocks has the greater upside potential? Let’s find out.
The Case for RDDT StockReddit is benefiting from strong demand in its advertising business, which has become a key growth driver of the company’s impressive financial performance and future growth prospects. In the first quarter of 2026, Reddit reported total revenues of $663 million, up 69% year over year, with advertising revenues growing even faster at 74% to $625 million. This marks Reddit’s seventh consecutive quarter of revenue growth above 60%, underscoring the sustained momentum in its ad business.
Growth can be attributed to the company’s expanding portfolio, strong user engagement, including rising daily and weekly active users, gains in Average Revenue Per User and the expansion of advertiser tools such as Dynamic Product Ads (DPAs), Reddit Pixel and CAPI.
Reddit’s expanded partnership with Shopify remains noteworthy. In May 2026, Reddit expanded its Shopify integration globally, making it easier for merchants to launch DPAs and connect storefronts directly to Reddit’s advertising platform. The update includes streamlined account linking, automated product catalog syncing and a codeless Reddit Pixel for conversion tracking. Reddit also highlighted new retail research showing strong shopping intent among its users, with advertisers seeing higher returns on ad spend compared with other social platforms. The company highlighted that retail ad investment has grown significantly, reinforcing its position as a key destination for product discovery and purchase decisions.
Reddit’s investments in artificial intelligence (AI)-powered tools remain noteworthy. The launch and adoption of Reddit Max, an automated, AI-powered campaign tool, enabled advertisers to achieve a 17% reduction in cost per action and a 25% increase in conversion rate in the first quarter of 2026. About 50% of Max campaign advertisers now use AI-powered creative features, and brands like Cozy have reported a 35% higher ROAS and a 28% lower cost per acquisition with these tools.
The Case for META StockMeta Platforms’ focus on integrating AI into its platforms, which include Facebook, WhatsApp, Instagram, Messenger, and Threads, is driving user engagement to boost ad revenues. In the first quarter of 2026, Meta’s Advertising revenues were $55.02 billion, which increased 33% year over year.
A key factor behind this momentum is Meta Platform’s ongoing investment in AI to enhance both user and advertising engagements. AI is heavily dependent on data, of which META has a trove, driven by its more than 3.56 billion daily users. Meta Platforms continues to see strong engagement trends on Instagram Reels, with watch time up 10% and Facebook video time up 8% globally in the first quarter of 2026. AI-translated videos are now watched weekly by more than 500 million users on Facebook and Instagram. Threads continue to grow with more than 150 million daily active users.
Meta Platforms’ generative AI advertising tools are gaining strong traction, with more than 8 million advertisers using at least one GenAI ad creative tool in the first quarter of 2026. Video generation tools improved conversion rates by more than 3%, while adoption among small and medium businesses has been particularly strong.
Price Performance and Valuation of RDDT and METAIn the trailing 12-month period, shares of Reddit have gained 35.9%, whereas shares of Meta Platforms have plunged 14.9%. The outperformance in Reddit can be attributed to strong ad revenue growth, powered by automation and AI, the company’s expanding portfolio and strong user engagement.
Despite a strong portfolio and client base, Meta Platforms is facing rising costs in AI infrastructure, which are increasing expenses. Reality Labs continues to operate at a loss. The benefits from Meta AI and its agents are still in progress, and overall scrutiny from regulations and lawsuits is high.
RDDT and META Stock Performance
Image Source: Zacks Investment Research
Valuation-wise, RDDT and META shares are currently overvalued, as suggested by a Value Score of F and C, respectively.
In terms of the forward 12-month Price/Sales, RDDT shares are trading at 9.37X, which is higher than META’s 5.44X.
RDDT and META Valuation
Image Source: Zacks Investment Research
How Do Earnings Estimates Compare for RDDT & META?The Zacks Consensus Estimate for RDDT’s 2026 earnings is pegged at $4.83 per share, which has been unchanged over the past 30 days. This indicates an 84.35% year-over-year rise.
The Zacks Consensus Estimate for META’s 2026 earnings is pegged at $33.01 per share, which has increased 0.21% over the past 30 days. This indicates a 40.53% increase year over year.
RDDT and META’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters. However, RDDT’s average surprise of 67% is higher than META’s surprise of 12.31%.
ConclusionWhile both Reddit and Meta Platforms stand to benefit from the booming digital advertising market, Reddit offers greater upside potential given its rapid revenue growth, surging advertiser base and expanding engagement tools.
Despite its dominant position in the digital advertising market, Meta Platforms faces rising costs in AI infrastructure that are increasing expenses and growing regulatory pressures that could weigh on its advertising growth. Stiff competition further limits its upside potential.
Both Reddit and Meta Platforms currently carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meta Platforms is recommended as a buy due to its AI-driven strategy, which is driving digital advertising market share gains and operational outperformance. META's Advantage+ and upcoming Spark and GEM models are delivering superior ROAS, fueling 24%+ ad revenue growth and projected market share leadership over Google. Despite compressed valuation—forward P/E ~17.6x, EV/S ~5.3x—concerns over elevated AI capex and free cash flow are outweighed by robust growth and improving margins.
Meta CTO Andrew Bosworth. Bloomberg/Getty Images The vibes are off at Meta, its top leadership said internally.
Meta chief technology officer Andrew "Boz" Bosworth said morale at the tech giant is near an all-time low as recent mass layoffs and internal AI initiatives roil many longtime employees.
Morale is "maybe not the worst it's ever been in 20 years here, but it's probably up there. It's definitely up there," Bosworth said during an internal "Tuesdays with Boz" chat on June 2, four people who were on the call told Business Insider.
"I can think Cambridge Analytica was probably the worst," Bosworth added in reference to the scandal about millions of Facebook users' data being used to target voters during the 2016 election.
He then added that morale is "probably one of the worst it's ever been."
Meta declined to comment for this story.
It's been a difficult year for many Meta employees. Meta laid off 10% of staff in May, citing the need to offset its huge AI investments.
Meta reassigned roughly another 10% of its workforce to train its AI models. Some staff referred to joining the mandatory task force as being "drafted" and viewed the work largely as data-labeling, Business Insider previously reported.
In April, Meta also faced employee backlash over an initiative to track their mouse movements and keystrokes to improve Meta's AI models.
Meta leadership said it has begun taking steps to improve morale. On Monday, Bosworth sent a memo to staff about how Meta needs to "be the best place for the best people to do their best work," and that he hoped to "rekindle the best of the culture" that people joined, according to a copy obtained by Business Insider, which was first reported by Wired.
"We must provide our people the support to do things the right way for the long term, including taking smart risks when the situation calls for it and to be recognized for it," the memo read.
Meta will commit to transparency from its leadership and its employees' personal and career development, Bosworth's post added.
Meta will allow people reassigned to the AI task force to reapply for other jobs within Meta if they want to, and it is increasing budgets for travel, events, and snacks, Wired reported.
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Charles Rollet is BI's tech correspondent in San Francisco. Prior to joining BI, Charles worked at TechCrunch covering startups and VC. Charles is based in the Bay Area, where he enjoys hiking with his dogs. You can contact Charles securely on Signal at charlesrollet.12 or +1-628-282-2811.
Exclusive Meta Mark Zuckerberg More AI Layoffs Big Tech Business
Apple is preparing for a huge wave of new product releases, including camera- and AI-equipped AirPods and glasses that will launch the company into the red-hot AI device market — and into head-on competition with Meta’s own AI-enabled camera sunglasses.
Apple’s new AirPods mark the next step in its development of what it calls Visual Intelligence, technology that can analyze images and provide instant context, according to Bloomberg News.
The AI-juiced earbuds will closely resemble current AirPod Pro models, but with tiny cameras embedded in the stems.
Apple is preparing camera and AI-equipped AirPods. Getty Images Rather than capturing photos or video, the device’s computer-vision cameras would serve as sensors, supplying Siri with visual context – such as helping improve navigation during turn-by-turn walking directions.
The tech giant is also planning to launch its first smart glasses as soon as late 2027, Bloomberg reported. Code-named N50, the shades will compete with products from Mark Zuckerberg-led Meta and will feature more advanced cameras capable of capturing photos and video.
Meta – which has its own AI and camera tech embedded in Ray-Ban and Oakley sunglasses – has come under criticism as creeps and wannabe pickup artists have reportedly used them to record their come-ons to unsuspecting women, posting the pervy results in video form online.
Privacy advocates have also issued warnings about the potential dangers of wearable AI tech.
Apple’s AI AirPods will have external lights that can alert people around the wearer when data is being sent from the earbuds to the cloud, according to Bloomberg.
Early versions of Meta’s smart glasses have been able to take pictures and shoot videos. NurPhoto via Getty Images The new AirPods are intended to become Apple’s first AI-centric wearable device.
The release is set to come around the same time as a next-gen foldable phone and a new iPhone model to mark the product line’s 20th anniversary.
Apple intends the upcoming slate of offerings to be its largest debut of new products yet, Bloomberg reported.
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Early versions of Meta’s smart glasses have been able to take pictures and shoot videos. With the addition of AI, they can answer questions and respond with text on one lens for “Display” models or via audio built into the stems of non-Display models.
Apple has already made Visual Intelligence a centerpiece of its revamped Siri and iOS 27, integrating the feature directly into the Camera app.
The aim is to allow users to ask Siri questions about objects and their surroundings. A user looking at a selection of ingredients, for instance, could ask the assistant what to make for dinner.
The new AirPods are intended to become Apple’s first AI-centric wearable. Bloomberg via Getty Images The AirPods initiative is part of a broader push into AI-powered hardware from Apple.
Apple is also developing an AI-focused pendant equipped with a camera that could be worn on clothing or as a necklace — but probably not like the device that controls space and time in the “Black Mirror” episode “Bête Noire.”
The new products could provide tailwinds during the first full year of John Ternus’ tenure as chief executive officer after he succeeds to the role in September.
The AirPods, code-named B798, were originally targeted for a 2026 release, people familiar with the matter told Bloomberg. The timetable slipped in part because of Apple’s prolonged challenges in artificial-intelligence software development. The company also needed to build visual AI models capable of identifying objects in a user’s environment.
Meta Platforms (META - Free Report) ended the recent trading session at $600.21, demonstrating a +1.13% change from the preceding day's closing price. The stock exceeded the S&P 500, which registered a loss of 0.57% for the day. Meanwhile, the Dow gained 0.64%, and the Nasdaq, a tech-heavy index, lost 1.15%.
Coming into today, shares of the social media company had lost 2.9% in the past month. In that same time, the Computer and Technology sector gained 2.85%, while the S&P 500 gained 2.14%.
Investors will be eagerly watching for the performance of Meta Platforms in its upcoming earnings disclosure. The company is predicted to post an EPS of $7.11, indicating a 0.42% decline compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $60.13 billion, indicating a 26.56% growth compared to the corresponding quarter of the prior year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $33.01 per share and a revenue of $253.28 billion, representing changes of +40.53% and +26.03%, respectively, from the prior year.
It's also important for investors to be aware of any recent modifications to analyst estimates for Meta Platforms. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.6% downward. Meta Platforms is holding a Zacks Rank of #3 (Hold) right now.
In terms of valuation, Meta Platforms is currently trading at a Forward P/E ratio of 17.98. For comparison, its industry has an average Forward P/E of 18.65, which means Meta Platforms is trading at a discount to the group.
It is also worth noting that META currently has a PEG ratio of 0.93. This popular metric is similar to the widely-known P/E ratio, with the difference being that the PEG ratio also takes into account the company's expected earnings growth rate. The Internet - Software industry had an average PEG ratio of 1.05 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 93, finds itself in the top 39% echelons of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
You can find more information on all of these metrics, and much more, on Zacks.com.
SummaryCompaniesParents say 12-year-old girl who died by suicide had secret Instagram accountItalian families sue Meta, TikTok over alleged harm to minorsCompanies deny allegations and say they take safeguarding stepsFirst such case in Italy as social media under new scrutiny in EuropeASTI, Italy, June 17 (Reuters) - In the span of just a few months, Irene Roggero Ugues watched her daughter Rossella's behaviour change as social media fed her an increasing stream of self-harm content, before the 12-year-old died by suicide.
Only after Rossella's death did Irene and her husband unlock her devices. They found that she had been using social media far more than they had known, including maintaining a secret Instagram profile called 'Just a dead pers0n' with a zero instead of an o.
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In September, 2023, they said, Rossella began searching for depressive material which mirrored how she felt. Social media algorithms kept pushing it back to her, and just five months later she was dead.
"At some point, it seemed to take on a life of its own, growing until it overwhelmed the cheerful, sociable side of her — the brighter part," Irene told Reuters in a private room at a café in central Asti, her hometown in northern Italy.
Rossella's parents are among a number of families in Italy that have brought a lawsuit against Instagram-and-Facebook-owner Meta (META.O), opens new tab, and its biggest social media rival TikTok. In the first collective action in Italy to directly challenge social media companies and their algorithms, the families are seeking tighter limits on minors' access and greater awareness of risks.
Both companies deny the lawsuit's allegations that their services are harmful to young people, and say they take steps to protect young users by removing harmful content, limiting exposure to risky material and helping families manage children's accounts.
"We know parents worry about the safety of their teens online, which is why we're consistently making changes to help protect teens," a Meta spokesperson said, citing its "Teen Accounts" and built-in safeguards.
"We strongly disagree with these allegations, which ignore our longstanding commitment to supporting young people."
TikTok said its efforts include strict enforcement of guidelines aimed at protecting users' mental and behavioural health, adding that it removes more than 99% of content that violates those rules.
"We also continue to invest in safety measures to diversify recommended content, block potentially harmful searches and connect vulnerable users with support resources," a TikTok spokesperson said, citing local suicide prevention help lines.
Asked specifically about the role that Instagram may have played in Rossella's case, Meta told Reuters that it would not comment directly during the litigation, but that young people’s mental health is shaped by a wide range of factors. The impact of social media platforms depends on how they are used, the safeguards in place to protect users, and the level of parental involvement, it said.
A SUDDEN ILLNESSSpeaking slowly and choosing her words carefully, Irene said Rossella's tragedy unfolded like a sudden, devastating "illness" that left her parents powerless.
Without the algorithm, she says, "the progression of her distress — or psychosis, or whatever it was that I still cannot define — might have unfolded more naturally."
Scrutiny of digital platforms is intensifying across Europe, with Britain announcing plans this week to ban social media for children under 16. In the United States, a U.S. ruling found Meta and Alphabet's Google negligent in designing platforms deemed harmful to young people.
European Union regulators are stepping up enforcement of the Digital Services Act, pressing online platforms to better protect minors and curb harmful content.
"The goal is not to dismiss the benefits of social media, but to remove the technological and marketing mechanisms that make it harmful to the most vulnerable users," said lawyer Stefano Commodo, who is leading the case with the Italian association of parents MOIGE.
Item 1 of 5 Irene Roggero Ugues, whose 12-year-old daughter took her own life in 2024, holds a mobile phone displaying a photograph of her daughter during an interview with Reuters at a cafe in Asti, Italy, May 28, 2026. Roggero Ugues said her daughter had been exposed to self-harm content on social media. REUTERS/Claudia Greco
[1/5]Irene Roggero Ugues, whose 12-year-old daughter took her own life in 2024, holds a mobile phone displaying a photograph of her daughter during an interview with Reuters at a cafe in Asti, Italy,... Purchase Licensing Rights, opens new tab Read more
PARENTS CANNOT KEEP UP: THE LIMITS OF CONTROLParents say safeguards provided by the platforms fall short, noting that children can easily find online tutorials showing how to bypass filters or avoid time limits by switching devices.
"Monitoring social media use is a full-time job. It would require parents to spend all their time doing it, and that is simply unrealistic," said Valentina Muraglie, who sits on the board of Italy's association of large families.
Her own son Antonio put aside his collection of Harry Potter books and replaced reading with scrolling as a teenager. Now in his 20s, he finds it hard to read in depth, which she blames on social media algorithms that sucked away his attention.
"Once he had a phone in his hand, at 16, little by little books started to disappear," she told Reuters. "Within a few years he stopped reading altogether."
The World Health Organization warns that problematic social media use - marked by addiction-like behaviour - is increasing among adolescents and is linked to lower well-being, poor sleep and broader health risks.
Studies published in JAM Paediatrics, a U.S. medical journal, point to measurable differences in brain development among heavy social media users, particularly teenagers whose brains are still developing.
The Italian case argues that social media platforms use reward mechanisms modelled on slot machines to foster dependency, by repeatedly triggering dopamine, a brain chemical linked to pleasure and reward.
"Each 'like' or notification triggers dopamine release, tying users to the platform in a way that resembles addiction," said Tonino Cantelmi, a plaintiffs' advisor and director of the School of Specialisation in Cognitive-Interpersonal Psychotherapy in Rome.
Families bringing the case say brain scan studies of social media users show activity in areas of the brain associated with addiction.
Asked about the scientific evidence on addiction presented in court, spokespeople from Meta and TikTok declined to comment on the litigation, while repeating their earlier comments on the companies' records on mental health.
Some psychologists caution against drawing simple conclusions about the effects of social media on adolescents.
"The healthiest approach when dealing with adolescents is to accept that we are unprepared," Federico Tonioni, head of the Web Psychopathology Centre at Rome's Gemelli hospital, said.
He added he could not conclude that his patients would suffer less in a world without social networks, warning against over-reliance on parental control.
"If there is something dangerous, it is control over children. Young people need to be listened to. Control is not a healthy form of presence. The healthiest distance is trust."
Irene Roggero Ugues said she joined the lawsuit to help ensure that other parents are made aware of risks that she did not learn about until after it was too late to save Rossella.
"We underestimated certain risks and didn't know they existed, but others can still act. There's no point keeping this to myself, and I don't think Rossella would mind."
Reporting by Sara Rossi in Asti, Giselda Vagnoni and Matteo Negri in Rome, additional reporting by Alex Fraser in Asti and Gabriele Pileri in Rome Writing by Giselda Vagnoni Editing by Adam Jourdan and Peter Graff
Our Standards: The Thomson Reuters Trust Principles., opens new tab
On the June 12 episode of The Ramsey Show, a debt-free single woman with a roughly $250,000 net worth called in asking whether to buy 10 to 100 shares of SpaceX at about $162 each because a friend told her the stock was “going to skyrocket.” Dave Ramsey’s answer doubled as a personal finance lesson for anyone tempted by a hot single-stock tip: “I am not investing in SpaceX. I’m not buying single stock in that company. As much as I’m rooting for it, I could just keep doing what I’m doing, invest in mutual funds and stay boring.”
One housekeeping note before the math: SpaceX is not listed on a U.S. exchange, so most retail investors cannot simply buy shares the way the caller described. The closest public-market proxy is Elon Musk’s other company, Tesla (NASDAQ:TSLA | TSLA Price Prediction), which recently made a $2 billion equity investment in SpaceX and is building a chip fab at Gigafactory Texas with SpaceX.
The verdict: Ramsey is right, and the math is the reason Ramsey’s position is correct for the caller, and the case rests on opportunity cost. He framed it plainly: the claim behind any single-stock bet is that it will so badly beat the broad market that locking up the money is worth the risk. He reminded the caller that the U.S. market has roughly doubled every seven years, meaning a $5,000 index purchase has historically tended to become about $10,000 over that span without anyone touching it.
Real numbers back up the “boring” path. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 23% over the past year, 75% over five years, and 257% over ten years. It does that work for a 0.09% expense ratio, holding 500 companies across eleven sectors. The fund’s top ten names, including NVIDIA at 8% and Tesla at 2%, already capture the AI and electrification story most retail investors are chasing.
If you want more growth tilt, the Invesco QQQ Trust (NASDAQ:QQQ) returned 35% over the past year and 568% over ten years. Co-host George Kamel’s point lands here: a good growth-stock mutual fund will absorb SpaceX over time once it goes public, so patient investors get a piece anyway without taking single-stock risk today.
The variable that actually decides this: your play-money cushion What actually changes the answer is how big the bet is relative to everything else — not age or income, but cushion size. Ramsey ran his “kitchen table test”: imagine putting the $5,000 on the table and watching it burn. Would you still be okay? She said yes, and Ramsey allowed it “could be a fun ride for you.” Kamel drew the line at the cushion size: he wouldn’t stop someone with a $1 million-plus net worth and 20 years of mutual fund investing from playing with $5,000, but told this caller “I think you’re still building.”
Both hosts capped speculative single-stock positions at 5% to 10% of a total portfolio. On $250,000, that ceiling is roughly $12,500 to $25,000 total across every speculative bet combined, not per stock. A $5,000 SpaceX position would fit inside that band, but only if no other lottery tickets are already in the account. Ramsey also referenced the Dogecoin run-up around Elon Musk’s SNL appearance as the cautionary version of this story.
The Tesla example shows why concentration is dangerous even when the company succeeds. Tesla trades at 402 times earnings and 245 times free cash flow, with a 4% net margin and 5% return on equity. The stock is down 10% year to date even after a 27% one-year gain. Single names move like that. Index funds rarely do.
What to actually do this week Add up every speculative position you already own (crypto, single stocks, options) and divide by your total invested assets. If that number is above 10%, do not add SpaceX, Tesla, or any other single name until the ratio comes down. Run Ramsey’s kitchen table test on the exact dollar figure you are considering. If burning it would force you to change your retirement date, the bet is too big. Compare the expected hold period against a plain index alternative. $5,000 doubling to roughly $10,000 in seven years in an S&P 500 fund is the hurdle any single stock has to beat after taxes. If SpaceX eventually IPOs, check whether your existing growth fund already holds it before buying separately. As Kamel noted, the fund will likely do that work for you. The boring portfolio is boring because it works. A speculative single stock is allowed to be in the picture only after the boring part is doing the heavy lifting.
Goldman Sachs has maintained its $375 Tesla (NASDAQ: TSLA) stock price target and reiterated a ‘Neutral' rating on the electric vehicle maker despite raising its second-quarter 2026 vehicle delivery forecast.
I’m going to put the verdict at the top. Our Tesla (NASDAQ:TSLA | TSLA Price Prediction) work points to a stock trading right at fair value heading into the back half of 2026. The 24/7 Wall St. price target for Tesla is $417.62, against a current price of $420.55.
That implies -0.7% downside over the next 12 months. Our recommendation is hold, with a 90% confidence level, meaning we view this as one of our higher-conviction neutral calls.
24/7 Wall St. Price Target Summary Metric Value Current Price $420.55 24/7 Wall St. Price Target $417.62 Upside/Downside -0.7% Recommendation HOLD Confidence Level 90% How Tesla Got Back to $420 Tesla is up 26.39% over the past year but down 8.58% year to date after a January peak near $475. Shares are now 16% off the 52-week high of $498.83 and well above the $288.77 52-week low.
The fundamental story improved sharply in Q1 2026. Tesla posted non-GAAP EPS of $0.41 against a $0.3592 estimate, with revenue of $22.387 billion growing 15.78% year over year. Automotive gross margin rebuilt to 21.1% from 16.2%, and FSD active subscriptions hit 1.28 million, up 51%. R
eddit chatter, however, has fixated on SpaceX IPO speculation rather than the core auto business, with sentiment swinging from 90 (very bullish) on June 9 to 57 (neutral) by June 16.
The Case for $480+ Bulls have a clean story. Q2 2026 deliveries are tracking the 425,000-475,000 band that Polymarket prices at 67.1% combined probability. Cybercab, Tesla Semi, and Megapack 3 all hit volume production this year, and Gen 3 Optimus was unveiled in Q1. Free cash flow of $1.444 billion in Q1, up 117.47% YoY, plus $44.743 billion in cash, funds the entire AI roadmap without dilution.
Prediction markets see $435 as the modal June touch (41.3%) and assign a 55% probability to closing above $450 by month-end. Our bull-case 12-month scenario lands at $481.77, a 14.56% return, if FSD wins China approval and Robotaxi expands cleanly into seven new cities.
Goldman Sachs has a neutral rating on Tesla shares with a $375 price target.
What Could Go Wrong The bear case starts with valuation. Tesla trades at a trailing P/E of 369 and a forward multiple of 196. Q4 2025 revenue fell 3.14% YoY, full-year operating income dropped 38.45%, and net income fell 46.79%. Operating expenses jumped 37% in Q1 on AI R&D and CEO award stock-based comp, and energy storage revenue slipped 12%. Insiders are net sellers across 46 recent transactions.
Bulls would counter that the 2025 weakness reflects a pre-launch lull before Cybercab, Semi, and Optimus arrive. Fair point. But our bear scenario still maps to $362.58, a -13.78% return, if FSD approvals slip and the auto multiple compresses.
Tesla Price Prediction 2026-2030 I’m sticking with hold. The 24/7 Wall St. price target of $417.62 at 90% confidence says Tesla is fairly priced for what we can underwrite today.
The setup turns more constructive if Q2 deliveries come in above 475,000 or if China grants FSD approval. The thesis weakens if operating margin stays stuck below 5% and inventory days keep drifting higher from the current 27.
Looking further ahead, here is where our model projects Tesla could trade, assuming current growth trajectories and base-case execution hold.
Year 24/7 Wall St. Price Target 2026 $421.53 2030 $472.51 These projections assume Tesla executes on Cybercab, Optimus, and Robotaxi scaling without margin disruption. Significant upside could come from a successful xAI integration or global FSD approvals, while a delayed Optimus ramp or sustained tariff pressure would skew us toward the bear scenario.
Two U.S. senators are asking the nation's traffic safety regulator to examine Tesla's self-published crash statistics for its “Full Self-Driving” (FSD) driver-assistance system, following a Reuters investigation last month that found the EV maker was exaggerating its safety claims.
Shares of Tesla (TSLA 1.55%) reached their all-time intraday peak of $498.83 on Dec. 22, 2025, giving it a market cap of around $1.67 trillion.
On June 12, Space Exploration Technologies (SPCX +4.83%), more widely known as SpaceX, held its initial public offering and closed the session with a market cap of $2.11 trillion.
Here's why SpaceX is soaring, and which growth stock is the better buy now.
Image source: Getty Images.
Private investors hold the majority of SpaceX's value SpaceX raised $75 billion by selling 555.6 million shares at a price per share of $135. The float, which is the shares available for public trading, is less than 5% of the shares outstanding, meaning the vast majority of SpaceX is still owned by insiders who were awarded shares as compensation or institutions that bought in during pre-IPO funding rounds. The float should increase gradually as SpaceX is allowing those insiders to sell some shares well before the usual 180-day lockup period ends.
With so much demand for shares and a relatively small available supply, SpaceX's valuation could continue to run up, at least in the short term. But those market dynamics could also inflate it with a lot of hot air, which could compress once the float makes up the majority of outstanding shares. Even with Elon Musk still owning around 19% of Tesla as of April, Tesla's float is now about 75% of the shares outstanding.
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Tesla and SpaceX have sky-high valuations A few years ago, Tesla was raking in free cash flow at margins that led the auto industry. But the electric vehicle (EV) market has since taken a hit. Consumer adoption of the technology has been slower than expected, and President Donald Trump's "big beautiful bill" removed the tax incentives that made EVs more affordable, putting another headwind on demand. Tesla's first-quarter deliveries were up just 6.3% year over year, while its energy storage product deployments fell 15.4%.
Aggressive investments in its efforts to build a robotaxi network, enhance its self-driving software, and develop marketable humanoid robots (Optimus), among other endeavors, are driving surging capital expenditures that are taking a sledgehammer to Tesla's profitability. The current consensus estimates among analysts is that it will earn just $2.06 per share in 2026, and $2.50 per share in 2027 on sales of $118.45 billion. That gives it a staggering forward price-to-earnings ratio of 162.4. For context, Tesla's all-time high annual EPS was $4.30 in 2023.
SpaceX's valuation is even more lofty. In 2025, its revenue increased by 33.2% to $18.67 billion, and net income went from $791 million in 2024 to a $4.94 billion net loss in 2025. With its market cap topping $2.5 trillion as of the close of trading Monday, that gives it a price-to-sales ratio of about 134 relative to its 2025 revenue.
When Tesla's earnings were soaring, it would have been the obvious choice over SpaceX for investors interested in companies offering proven profitability. But now, Tesla and SpaceX are both carrying values that depend far more on their anticipated growth potential than on what they are delivering today. So the answer to the question of which is the better buy may come down to which end markets you're more excited about.
Undeniable potential Tesla's robotaxi network could end up being more valuable than its passenger vehicle business -- especially as legacy automakers and pure-play EV competitors continue to release more advanced models. Utility-scale energy storage is another massive growth market as the tech sector looks for ways to alleviate the artificial intelligence energy bottleneck. And while Tesla has talked extensively about using its Optimus robots in residential settings, the bigger opportunity may be in factory operations.
SpaceX's main revenue driver is its Starlink network of low-Earth-orbit satellites that provide broadband connectivity and wireless internet to commercial, governmental, and residential customers. SpaceX also works with government agencies and commercial customers to launch payloads into space using its reusable Falcon 9 booster.
It also owns xAI, the maker of the Grok large language models, and social media platform X. AI could be a key driver of SpaceX's near-term growth, including through the deployment of data centers in space as early as 2028.
SpaceX's Earth ambitions are bold, but they pale in comparison to the company's stated mission: "To build the systems and technologies necessary to make life multiplanetary, to understand the true nature of the universe, and to extend the light of consciousness to the stars."
A merger could be on the way Investors may not need to choose between SpaceX and Tesla for long. I fully expect the companies to at least attempt to merge as soon as next year.
The current regulatory environment in the U.S. is extremely business-friendly, so if there were ever a time to propose such a megamerger, it would be now. What's more, both SpaceX and Tesla could benefit if CEO Musk were putting all of his efforts into one combined company rather than splitting his focus.
Tesla and xAI already collaborate on Tesla's Full Self-Driving technology, and xAI's Grok is integrated into Tesla vehicles and Optimus robots. Meanwhile, xAI buys energy storage systems from Tesla, and the companies are collaborating on a chip manufacturing initiative called Terafab.
To top it all off, Tesla was an early investor in xAI, which SpaceX merged with earlier this year. So the longer-term plan all along seems to have been to eventually unite all of Musk's companies under one umbrella.
The combined market cap of SpaceX and Tesla as of the close of trading Monday was about $4 trillion -- behind Nvidia, Alphabet, and Apple for the fourth-most-valuable company in the world.
SpaceX has a big advantage over Tesla in that it has few real competitors, whereas Tesla faces mounting competition from other EV makers, automakers incorporating self-driving features into their vehicles, and pure-play autonomous vehicle rivals like Alphabet-owned Waymo.
However, even with more competition, Tesla has a much clearer path to consistent profitability if the adoption of its autonomous vehicles and robots grows. SpaceX, by contrast, still needs to prove it can expand without relying on the capital markets to raise money.
Tesla stock TSLA moved lower on Tuesday even as analysts grew more optimistic about the company's near-term vehicle deliveries.
Shares of the electric vehicle maker fell about 2% in early trading to $402.39, while the broader market was rallying, with the S&P 500 higher by roughly 1.6%.
The decline came as SpaceX, Elon Musk's rocket and artificial intelligence company, continued its post-IPO surge.
SpaceX shares rose about 8% to $208.39, giving the company a market value of approximately $2.8 trillion.
By comparison, Tesla's market capitalization stood near $1.3 trillion.
Despite the stock's decline, Goldman Sachs expressed increased confidence in Tesla's second-quarter vehicle deliveries.
The bank reiterated its Neutral rating and maintained a $375 price target while raising its second-quarter 2026 delivery forecast to 420,000 vehicles from 405,000 previously.
That forecast now sits above the Visible Alpha consensus estimate of 400,000 vehicles.
Goldman Sachs analyst Mark Delaney said monthly and weekly sales data across key regions, including the United States, Europe, and China, suggest Tesla's second-quarter deliveries are tracking ahead of market expectations.
"We believe that Tesla’s 2Q26 vehicle deliveries are likely tracking ahead of consensus," Delaney wrote.
According to Goldman Sachs, Europe has been one of Tesla's strongest-performing regions during the quarter.
The firm said European registration data through May showed year-over-year growth of roughly 85% to 90%, while countries reporting June daily data indicated a strong start to the month, with deliveries rising about 20%.
Goldman Sachs noted that part of the increase reflects favorable comparisons against weak results in the prior year period.
Tesla's European deliveries declined 29% year over year during the second quarter of 2025, creating a relatively low comparison base.
Elsewhere, the bank said Chinese sales data from the China Passenger Car Association points to high single-digit year-over-year growth through May.
Other Asia-Pacific markets have also reported encouraging results. South Korea and Australia have both delivered strong sales performance on both a year-over-year and quarter-over-quarter basis through May.
In the United States, however, deliveries remain weaker. According to Motor Intelligence data cited by Goldman Sachs, US deliveries through May were tracking down by the mid-teens percentage range compared with a year earlier.
Growth remains a key questionImproving delivery trends would be welcome news for Tesla after two consecutive years of declining electric vehicle sales.
Wall Street currently expects Tesla to deliver approximately 1.7 million vehicles in 2026, up from roughly 1.6 million in 2025.
However, analysts caution that growth is far from guaranteed.
Tesla faces difficult comparisons later in the year after delivering a record 497,000 vehicles during the third quarter of last year.
Those results were boosted by consumers rushing to purchase vehicles before the expiration of the federal $7,500 electric vehicle tax credit.
The removal of that incentive has weighed on broader industry demand, although Tesla's sales have generally held up better than many competitors.
Investors remain focused on AIWhile vehicle deliveries remain important, many investors are increasingly valuing Tesla based on its artificial intelligence ambitions rather than its automotive business alone.
Tesla launched its AI-trained robotaxi service in Austin, Texas, about a year ago and has since expanded operations into a few more cities.
Investors continue to watch closely for signs of broader robotaxi deployment, believing that a larger autonomous-driving network could unlock a significant new revenue stream for the company.
Another closely watched catalyst is Optimus, Tesla's humanoid robot program.
Investors are anticipating the unveiling of the third-generation Optimus robot, which could arrive later this summer.
The Netherlands' transportation minister on Tuesday denied the country's influential RDW authority had relied on statistics submitted by Tesla as the basis of its approval of the company's "Full Self Driving (supervised)" software for use on Dutch roads.
The public debut of SpaceX NASDAQ: SPCX is officially in the books, and the sheer velocity of the price action caught even seasoned institutional desks off guard.
Priced at $135 just days ago, SpaceX quickly re-rated, recently pushing past $225 on intraday volume exceeding 200 million shares. This aggressive accumulation briefly sent it beyond the $2.5 trillion market capitalization threshold, cementing SpaceX as one of the most valuable businesses on the planet.
SpaceX (SPCX) Price Chart for Wednesday, June, 17, 2026
The euphoria surrounding the commercialization of low-Earth orbit is palpable, and the broader space economy represents a generational growth frontier. But separating the structural business from the current trading action is an essential survival skill. Behind the headline-grabbing valuation, a potent mix of engineered float scarcity, speculative derivatives trading, and immediate dilution is manufacturing a localized market anomaly.
Get SpaceX alerts:
When SpaceX trades at roughly 20x projected 2027 sales and posts an annual net loss of $4.94 billion, the valuation multiple demands flawless operational execution. Right now, the underlying data suggests the downside risk for SpaceX is increasingly asymmetric.
Ignition Sequence: Retail Fuel and Float ScarcitySpaceX Today
$201.80 +9.30 (+4.83%)
As of 06/16/2026 04:00 PM Eastern
52-Week Range$149.34▼
$225.64Price Target$161.25
To understand the current price action, you have to look beneath the underlying shares and examine the derivatives market.
The June 16 start of options trading acted as an accelerant to an already constrained float.
Over 600,000 contracts exchanged hands within the initial trading hours, and those trades were heavily skewed toward out-of-the-money weekly calls.
This type of retail-driven options frenzy triggers a mechanical market reaction known as a gamma squeeze. When retail traders buy massive blocks of call options, the market makers on the other side of those trades are forced to buy SpaceX stock to hedge their directional risk. Because early SpaceX employees and insiders are tightly restricted by post-IPO lock-up agreements, the available public float is acutely constrained.
When massive buying demand collides with a severe shortage of available shares, the price of SpaceX can completely disconnect from actual business fundamentals. This kind of rally is driven more by market mechanics than by near-term fundamentals. Because this momentum relies on a temporary supply shortage rather than true business growth, the current upward trend is incredibly fragile.
Paper Rockets: Acquiring Cursor With Inflated SharesAdding to the complexity is SpaceX's aggressive movement into major acquisitions. SpaceX recently disclosed a $60 billion all-stock acquisition of artificial intelligence (AI) coding startup Cursor's parent company, Anysphere.
When corporate boards execute massive acquisitions using purely stock rather than cash, they send a subtle but critical signal to the market. Leveraging a $2.5 trillion market capitalization to absorb a pre-revenue AI software architecture is a brilliant strategic maneuver from SpaceX executives, but it introduces immediate friction for retail shareholders.
The Cursor transaction could dilute the existing shareholder base by about 2-3% just days after the initial public offering. Expanding the outstanding share count while navigating a severe cash-burn cycle creates a structural headwind. Commercializing heavy-lift launch vehicles and expanding global Starlink satellite internet coverage requires immense capital. Diluting the SpaceX equity base to fund tangential AI ambitions introduces execution drag to an aerospace sector manufacturer already priced for perfection.
Gravitational Pull: The Tesla Consolidation RumorTesla Today
$404.66 -6.49 (-1.58%)
As of 06/16/2026 04:00 PM Eastern
52-Week Range$288.77▼
$498.83P/E Ratio371.25
Price Target$404.37
Retail excitement is receiving additional thrust from unconfirmed rumors of a corporate consolidation between SpaceX and Tesla NASDAQ: TSLA.
Speculation that Tesla will merge with SpaceX is actively inflating the premium that traders are willing to pay for SpaceX stock.
Some Wall Street analysts have even assigned an 80% probability to a Tesla-SpaceX combination within the next 12 months.
A theoretical conglomerate that consolidates artificial intelligence, robotics, terrestrial electric vehicles, and aerospace divisions into a single $3.5 trillion entity makes for excellent headlines. However, a megamerger of this scale introduces massive antitrust friction. Regulators will likely scrutinize the monopolistic implications of merging the dominant domestic EV infrastructure provider with the primary orbital launch company.
Treating Tesla consolidation rumors as an immediate bullish catalyst ignores the harsh realities of regulatory oversight. If the Tesla rumors fail to materialize into definitive corporate action, the speculative premium currently embedded in SpaceX will evaporate.
Escape Velocity: The Satellite ReboundThe gravitational pull of the historic SpaceX IPO had a predictable secondary effect on the broader market. It drained liquidity from the rest of the orbital sector. Portfolio managers and retail traders aggressively liquidated positions in smaller space infrastructure companies to reallocate capital toward the headline SpaceX event.
This capital rotation triggered sharp selloffs across the board. The Procure Space ETF NASDAQ: UFO dropped 7%, while highly specialized mid-cap operators faced sudden double-digit declines.
Some investors recognize that this sector dilution represents a mispricing of risk. The temporary liquidity drain is not a reflection of deteriorating fundamentals in the broader aerospace market, but rather a mechanical side effect of portfolio rebalancing. This temporary capital flight creates highly attractive entry points for pure-play satellite operators.
AST SpaceMobile NASDAQ: ASTS experienced a rapid 20% drawdown during the immediate SpaceX IPO frenzy but is already staging a rebound. AST SpaceMobile has a significant commercial catalyst with the deployment of three advanced BlueBird satellites, scheduled for a June 17 launch.
Similarly, established launch providers like Rocket Lab NASDAQ: RKLB offer operational consistency, growing backlogs, and proven payload delivery without carrying the astronomical forward multiple of SpaceX.
AST SpaceMobile and Rocket Lab stand to benefit from the exact same macro tailwinds, specifically the rapid reduction in orbital launch costs and the commercialization of space, but offer a vastly superior risk-to-reward profile for fresh capital.
Impact Warning: The Impending Q2 Lock-Up ExpirationThe speculative premium currently holding up the SpaceX valuation faces a definitive expiration date. The Q2 earnings report will trigger the first major insider lock-up expiration, releasing an initial 20% tranche of restricted SpaceX shares into the open market.
This event will begin to ease the float scarcity that is currently driving the gamma squeeze. Institutional short sellers are already aggressively positioning for this liquidity cliff, driving up borrowing rates on the limited SpaceX float.
When a sudden influx of fresh supply collides with a market lacking institutional buyers willing to step in at 20x forward sales, the resulting mean reversion is often violent. Investors heavily allocated to SpaceX may want to strictly evaluate risk parameters as the lock-up expiration approaches.
Those seeking to capitalize on the legitimate secular growth of the space economy might find more durable value by rotating into the heavily discounted satellite and launch infrastructure operators that were temporarily left behind in the SpaceX IPO frenzy.
Should You Invest $1,000 in SpaceX Right Now?Before you consider SpaceX, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and SpaceX wasn't on the list.
While SpaceX currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
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Tesla (TSLA 1.55%) and Space Exploration Technologies (SPCX +4.83%), or SpaceX, CEO Elon Musk recently addressed ASML (ASML 4.53%) employees during a fireside chat with ASML CEO Christophe Fouquet at the European company's technology conference. It's an important development, as it further validates Musk's intent with the Terafab initiative and ASML's role in facilitating it.
Terafab and ASML As a reminder, ASML is the only company in the world that makes extreme ultraviolet (EUV) lithography machines that chip manufacturers use to make artificial intelligence (AI) chips and others. It's an indispensable technology for AI chipmakers, and Terafab will be included in the future.
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The Terafab initiative brings together SpaceX and Tesla in a joint venture to build a massive semiconductor manufacturing complex aimed at resolving both companies' potential supply chain bottlenecks and providing chips for Optimus (Tesla) and, in the future, Tesla electric vehicles alongside AI chips for SpaceX's data centers, including orbital data centers.
The spending commitment for Terafab is huge, with a proposed initial investment of $55 billion that could ramp to $119 billion over time. That kind of investment offers significant potential for ASML, and Musk's address to its employees further underscores that.
What it means to investors For Tesla and SpaceX investors, it's clear that Terafab is a major part of Musk's vision for both companies. The bulls will note that it helps secure both companies' supply chains, although it's arguably much more important for SpaceX, as it's the cornerstone of its AI strategy.
Image source: ASML.
That said, Tesla investors are entitled to ask just how much their company will invest in Terafab. And if a potential merger between Tesla and SpaceX takes place, will the earnings and cash flow from robotaxis and Optimus be used to support SpaceX's growth ambitions, even though they might be better returned to Tesla investors as a stand-alone company?
For ASML investors, it's further confirmation of long-term demand for its equipment, which needs to be factored into their valuation assumptions.
Lee Samaha has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML and Tesla. The Motley Fool has a disclosure policy.
RIVN stock is moving. See the chart and price action here. Mind RoboticsMind Robotics was launched in late 2025 as a spin-out from the EV maker — growing from an internal initiative called “Project Synapse.”
In less than six months, the company had raised over $1 billion across three rounds: a $115 million seed led by Eclipse, a $500 million Series A co-led by Accel and Andreessen Horowitz and a $400 million follow-on led by Kleiner Perkins.
The latest round valued Mind Robotics at $3.4 billion, according to the Wall Street Journal.
Mind’s first product is expected within a year, and Rivian will be the startup’s first customer, using its Normal, Illinois assembly plant as a live deployment environment for AI-powered humanoid robots.
The structure is a deliberate departure from Tesla Inc.‘s (NASDAQ:TSLA) approach.
Elon Musk is developing Optimus inside Tesla — mass production began in January 2026, with 50,000 units targeted by year-end.
Scaringe is keeping the two companies legally separate, with Rivian feeding production data to Mind for AI model training while retaining equity upside.
“We realized it was such a big opportunity that deserved to be its own company,” Scaringe said at Rivian’s R2 launch event in Park City last week, according to CNBC.
He sees a multitrillion-dollar total addressable market for industrial labor and believes the window is closing fast.
“The rate at which this is moving is far faster — like an order of magnitude faster — than the average person in society understands,” he said.
The CompetitorsThe humanoid robotics race is crowded.
Figure AI is already deploying robots commercially at BMW, while Tesla’s Gen 3 Optimus is in 24/7 factory use at Fremont.
Mind has yet to ship a product. But Scaringe’s pitch to investors rests on a thesis: most robotics startups are engineering for human biomechanics when the real manufacturing value lives in dexterous, reasoning-capable hands.
Scaringe isn’t predicting an overnight robot takeover. He says the simplest, most repetitive tasks go to machines first — with complex, judgment-heavy work staying human for years.
The labor shortage in automotive manufacturing, he argues, makes that transition less a threat than a necessity.
The first Mind robot is coming soon. Whether it can keep pace with Optimus is the $3.4 billion question.
This image was generated using artificial intelligence via ChatGPT.
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Market News and Data brought to you by Benzinga APIs
Although its roots are in its electric vehicle (EV) business, Tesla (TSLA 1.55%) aspires to greater heights, and sees artificial intelligence (AI) as part of its path to reach them. The company's AI journey began in earnest back in 2015 when it introduced an early version of its self-driving software, then called Autopilot.
Fast-forward to 2026, and the company's AI endeavors have just reached another pivotal milestone. CEO Elon Musk recently announced that the company's latest in-house semiconductor chip, dubbed AI5, had achieved tape-out. This is the point at which a chip's design is complete and it's ready for manufacturing.
It also marks a major step toward fulfilling Tesla's AI ambitions. Here's why the AI5 chip could be a key development in Tesla's evolution into an AI titan.
Image source: Tesla.
Tesla's AI brain The AI5's tape-out positions the company to become a prominent provider of physical AI, in which artificial intelligence software can engage with the physical world by serving as the brain for machinery. Musk described completing the chip design as "arguably the No. 1 most critical thing to get done," which is why he personally oversaw the project.
The chip marks a dramatic step up from its AI4 predecessor. Musk stated that the new chip will deliver 40 times better performance over the prior model AI4. The substantial difference was made possible by a redesign that resolved challenges in hardware and software integration. Now, Tesla will be able to train more powerful AI models for its autonomous Cybercab ride-hailing service and Optimus robots.
The AI5 is powerful enough to enable on-board real-time inference, giving the local AI the ability to use data to make decisions in real-world situations. That capacity to perform inference without an internet connection is essential for self-driving cars, which have to navigate constantly changing road conditions, and for Tesla's planned Optimus robots, which will have to dynamically adapt to their environments.
The AI5 will also improve power management, and Musk called it "the best performance per dollar for AI." This could reduce Tesla's costs while delivering the computing capabilities required for physical artificial intelligence.
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AI5 and Musk's businesses Another factor in AI5's importance is its role in Tesla's collaboration with Musk's other company, Space Exploration Technologies, better known as SpaceX. The two businesses are co-developing a massive semiconductor factory called Terafab. With the chip serving as the hardware foundation for self-driving and robotics, and Terafab as the facility that produces it, the pair form a symbiotic loop.
This combination will reduce Tesla's reliance on outside manufacturers and make the company a vertically integrated AI operation. Currently, it is working with both Samsung and Taiwan Semiconductor to manufacture the AI5.
With the new chip and Terafab, Tesla is putting the pieces in place to transition from a company that is primarily a carmaker into an AI powerhouse. Automotive competitors are taking a page from Tesla's playbook to evolve their offerings. Ford Motor Company and General Motors are working to deliver autonomous vehicle capabilities by 2028.
Even so, neither possesses the vertical integration that Tesla is achieving through its AI technology. By pivoting resolutely into artificial intelligence with the AI5, Tesla should strengthen its lead over its automotive rivals for years to come.
Robert Izquierdo has positions in Ford Motor Company, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing and Tesla. The Motley Fool recommends General Motors. The Motley Fool has a disclosure policy.
Tesla (TSLA - Free Report) closed the most recent trading day at $404.66, moving -1.58% from the previous trading session. The stock trailed the S&P 500, which registered a daily loss of 0.57%. On the other hand, the Dow registered a gain of 0.64%, and the technology-centric Nasdaq decreased by 1.15%.
Shares of the electric car maker witnessed a gain of 0.28% over the previous month, beating the performance of the Auto-Tires-Trucks sector with its loss of 0.94%, and underperforming the S&P 500's gain of 2.14%.
Market participants will be closely following the financial results of Tesla in its upcoming release. On that day, Tesla is projected to report earnings of $0.45 per share, which would represent year-over-year growth of 12.5%. At the same time, our most recent consensus estimate is projecting a revenue of $24.32 billion, reflecting a 8.09% rise from the equivalent quarter last year.
For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of $1.99 per share and a revenue of $100.93 billion, representing changes of +19.88% and +6.43%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Tesla. Such recent modifications usually signify the changing landscape of near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Empirical research indicates that these revisions in estimates have a direct correlation with impending stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 1.27% lower. At present, Tesla boasts a Zacks Rank of #4 (Sell).
Investors should also note Tesla's current valuation metrics, including its Forward P/E ratio of 206.48. This indicates a premium in contrast to its industry's Forward P/E of 19.68.
It is also worth noting that TSLA currently has a PEG ratio of 9.81. The PEG ratio is akin to the commonly utilized P/E ratio, but this measure also incorporates the company's anticipated earnings growth rate. The Automotive - Domestic was holding an average PEG ratio of 0.95 at yesterday's closing price.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This industry currently has a Zacks Industry Rank of 170, which puts it in the bottom 31% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Make sure to utilize Zacks.com to follow all of these stock-moving metrics, and more, in the coming trading sessions.
China's juggernaut electric vehicle (EV) maker, BYD (BYDDY 2.92%), has taken the world by storm over the past few years. Considering the automaker only stopped producing internal combustion engine (ICE) vehicles in 2022, switching its entire product lineup to EVs and plug-in hybrids, overtaking Tesla (TSLA 1.55%) in EV sales for the full-year 2025 was impressive. Now BYD is taking it a step further and outdoing Tesla in another aspect, one that was critically important to the latter's initial surge.
What's going on with BYD and Tesla? One of the most valuable developments for the broader U.S. EV industry was Tesla's expanding Supercharger network. It was crucial as it helped reduce range anxiety, which was one of the biggest barriers to mainstream EV adoption. Building a reliable, expanding, and, maybe most importantly, fast-charging system quickly enabled early adopters to jump on board. It turned long-range EV travel into reality.
Image source: Tesla.
BYD is trying to take it a step further for its own expansion, and in some ways, the Chinese EV maker's charging network is making its rivals' networks appear slow. BYD has deployed 5,700 Flash Charging stations in China in just a few months and has also opened its first overseas charging stations in Europe. BYD isn't resting on its laurels either and is targeting 20,000 stations in China by the end of this year.
These charging stations can deliver up to 1,500 kW of power, roughly 3 times the output of Tesla's latest V4 Superchargers. BYD's partnership with Sinopec, China's largest fuel retail network boasting over 30,000 stations, could accelerate the network rollout even further. Electrek ran the numbers, and it won't take long for BYD to surpass Tesla's network: "If both companies continue at their current growth rates -- Tesla at roughly 18% annual growth, BYD at the pace implied by its 2026 targets -- BYD's network (measured in stall-equivalents) could surpass Tesla's globally between 2029 and 2030 -- in just roughly 4 years."
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What it all means for BYD There are a couple of factors for investors to consider as BYD's charging infrastructure expands. First, while BYD's network could rapidly catch Tesla's reach and numbers, that's not the only advantage the latter currently has. That's because Tesla has gained over a decade of valuable route planning data, proven 99% uptime reliability, and boasts the NACS standard that has essentially converted other automakers' vehicles into Tesla Supercharger network customers.
Secondly, while it's fun to compare the development progress of the two important networks, it's fair to note that tariffs and trade policy currently prevent BYD from competing in the U.S. market, thus giving Tesla's network control of the region. That said, in China specifically, BYD is on pace to match or surpass Tesla's local charging network within the next year to year and a half. Tesla has roughly 3,000 stations across the Asia-Pacific region.
Tesla's Supercharger network was instrumental in the broader EV revolution in the markets it competes in, and remains an advantage for the EV maker. BYD is replicating this advantage overseas, and it should only boost the EV maker's growing sales momentum globally. BYD remains a top automotive stock, and it doesn't appear to be slowing down in just about any metric.
At $80.91, Coca-Cola (NYSE:KO | KO Price Prediction) sits in a holding pattern. Shares have rallied roughly 23% off the 52-week low and now trade where high risk-free Treasury yields are squeezing defensive staple multiples.
Coca-Cola is the largest nonalcoholic beverage system in the world, anchored by sparkling soft drinks and increasingly carried by double-digit volume growth in Coca-Cola Zero Sugar. The concentrate-led, asset-light model drives operating margin expansion despite low single-digit global unit case volume growth.
Shares have climbed from a 52-week low of $64.04 toward the 52-week high of $83.50 on four straight earnings beats, a new CEO, and raised guidance. The easy part of the rebound has already happened.
Why the bulls still see room to run Fundamentals are accelerating. Q1 2026 delivered EPS of $0.86 against an $0.8123 estimate, revenue of $12.47 billion up 12.07% year over year, and operating margin expansion to 35.0% from 32.9%. Free cash flow jumped 131.85% year over year to $1.76 billion.
Management raised full-year comparable EPS growth guidance to 8% to 9% and reaffirmed roughly $12.2 billion of free cash flow for 2026. With a beta of 0.354, 63 straight years of dividend increases, and analyst targets above the current quote, bulls argue the next leg comes from compounding, not multiple expansion.
Why the bears say the rebound is the trade At a trailing P/E of 26 and forward P/E of 25, KO is priced like a growth-defensive hybrid while delivering only 3% global unit case volume growth. With Treasury yields elevated, a 2.5% dividend yield looks ordinary against risk-free cash.
Headwinds exist. Asia Pacific comparable currency neutral operating income fell 17%, juice and plant-based volumes slipped, and Q4 included a $960 million BODYARMOR impairment. A 4% A&D headwind tied to the pending Africa bottling sale plus ongoing IRS litigation keeps a lid on multiples.
Why patience pays here The business is executing, but the stock is no longer cheap and has round-tripped to its filing-day price of $75.74 and beyond. Income investors already own this name and are getting paid $0.53 per quarter.
The trigger to do anything new is a valuation reset. A pullback toward $68 would reset the multiple to a level that pays investors to absorb staples-sector compression. Until then, fresh capital earns more in short Treasuries than chasing a 0.354-beta name at the high end of its range.
What the price action and the analysts say KO trades at $80.91 with an analyst consensus target of $85.97, implying modest single-digit upside. Of 24 analysts, the breakdown is:
Strong Buy: 7 Buy: 12 Hold: 4 Strong Sell: 1 Shares are up 17.29% year to date versus 10.69% for the S&P 500, with KO carrying a price-to-sales ratio of 7.21 and EV/EBITDA of 20. That is the premium investors are paying for defensiveness.
Why standing pat is the right call at $80.91 At $80.91, Coca-Cola looks fairly valued.
The critical monetary metric is the spread between KO’s 2.5% dividend yield and short Treasury yields north of 4%. As long as that gap exists, defensive staples face a structural multiple headwind regardless of execution. Buying here means underwriting both flawless operations and a friendlier rate backdrop.
For existing holders, the dividend remains the core return driver. The streak is intact, free cash flow comfortably covers the payout, and the franchise is gaining share. Selling a 0.354-beta compounder that just raised EPS guidance to 8% to 9% growth introduces reinvestment risk that is hard to justify.
The trigger to add is a lower price. A reset toward $68 would restore a margin of safety and lift the forward yield to compete with cash. The trigger to exit is a break in margin expansion or guidance, neither visible today.
Standing pat is the right call because the dividend is secure, the rebound is largely priced in, and the next dollar of return depends on a valuation reset that has not happened yet.
Uber Technologies (UBER - 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 ride-hailing company have returned -3% over the past month versus the Zacks S&P 500 composite's +2.1% change. The Zacks Internet - Services industry, to which Uber belongs, has lost 6.4% over this period. Now the key question is: Where could the stock be headed in the near term?
While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making.
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.
We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Uber is expected to post earnings of $0.84 per share for the current quarter, representing a year-over-year change of +33.3%. Over the last 30 days, the Zacks Consensus Estimate remained unchanged.
The consensus earnings estimate of $2.95 for the current fiscal year indicates a year-over-year change of -44.3%. This estimate has remained unchanged over the last 30 days.
For the next fiscal year, the consensus earnings estimate of $4.42 indicates a change of +49.8% from what Uber is expected to report a year ago. Over the past month, the estimate has remained unchanged.
With an impressive externally audited track record, our proprietary stock rating tool -- the Zacks Rank -- is a more conclusive indicator of a stock's near-term price performance, as it effectively harnesses the power of earnings estimate revisions. The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #3 (Hold) for Uber.
The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:
12 Month EPS
Revenue Growth ForecastEven though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial.
In the case of Uber, the consensus sales estimate of $14.16 billion for the current quarter points to a year-over-year change of +11.9%. The $57.72 billion and $66.61 billion estimates for the current and next fiscal years indicate changes of +11% and +15.4%, respectively.
Last Reported Results and Surprise HistoryUber reported revenues of $13.2 billion in the last reported quarter, representing a year-over-year change of +14.5%. EPS of $0.72 for the same period compares with $0.83 a year ago.
Compared to the Zacks Consensus Estimate of $13.28 billion, the reported revenues represent a surprise of -0.59%. The EPS surprise was +2.86%.
Over the last four quarters, Uber surpassed consensus EPS estimates three 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.
While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.
As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.
Uber is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.
Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about Uber. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.
Second European announcement, with public operations expected later this year via the Uber appZurich will serve as the companies’ first deployment region in Switzerland, subject to regulatory approvalWeRide’s asset-light operating strategy continues with Rydera as fleet operator, supporting scalable deployment
ZURICH, June 17, 2026 (GLOBE NEWSWIRE) -- WeRide (NASDAQ: WRD, HKEX: 0800), a global leader in autonomous driving technology, and Uber Technologies, Inc. (NYSE: UBER) today announced plans to launch commercial Robotaxi services in the Greater Zurich Region, marking their second joint deployment in Europe within weeks of announcing Madrid.
Illustration of WeRide and Uber's Robotaxi GXR in Zurich
Operations are expected to begin later this year in collaboration with Switzerland’s Federal Roads Office (FEDRO). Rides will be available via the Uber app during launch, subject to regulatory approval.
Switzerland combines one of Europe’s most advanced regulatory environments for autonomous driving with a high-value ride-hailing market – creating strong underlying unit economics for Robotaxi services. The WeRide-Uber fleet will scale progressively and in coordination with the authorities as performance milestones are met, including the transition to fully driverless commercial services in core urban areas.
The deployment reflects WeRide’s asset-light operating strategy, leveraging established partners providing fleet investment and platform support to achieve scaled Robotaxi commercialization. In Zurich, Rydera, a local mobility and logistics operator, will manage day-to-day fleet operations.
This marks WeRide and Uber’s latest step in scaling proven deployments to new markets. Since December 2024, the partners have launched Robotaxi services across the Middle East, with fully driverless Robotaxi commercial services in
Abu Dhabi and
Dubai, and public operations in
Riyadh, providing a tested blueprint for expansion into Europe.
Last November, WeRide's Robotaxi secured a
driverless permit from Switzerland’s Federal Roads Office (FEDRO), enabling autonomous operations on public roads in Zurich’s Furttal region. Powered by the WeRide One universal technology platform and
WeRide GENESIS general-purpose simulation platform, WeRide will apply operational experience from existing deployments to accelerate rollout and ensure consistent performance in Zurich.
With the Zurich launch, WeRide and Uber will operate Robotaxi services in five of the 15 cities under their previous agreement, with plans to deploy tens of thousands of Robotaxis on public roads globally – accelerating the adoption of safe, reliable autonomous mobility.
"Europe is a priority region for WeRide, and announcing two European markets in two weeks reflects the speed and efficiency of our expansion strategy. Zurich’s status as a global business centre and premium mobility market makes it an attractive city for Robotaxi commercialization as we scale autonomous mobility with Uber worldwide," said Jennifer Li, CFO and Head of International at WeRide.
“Switzerland is a key market for autonomous mobility, combining forward-thinking regulation with a demand for high-quality ride-hailing solutions. Our partnership with WeRide continues to gain momentum across Europe, and we are excited to apply our operational expertise to bring this next generation of autonomous rides to Zurich,” added Sarfraz Maredia, Global Head of Autonomous Mobility & Delivery at Uber.
About WeRide
WeRide is a global leader and a first mover in the autonomous driving industry, as well as the first publicly traded Robotaxi company. Our autonomous vehicles have been deployed in over 40 cities across 12 countries. We are also the first and only technology company whose products have received autonomous driving permits in eight markets: China, the UAE, Singapore, France, Switzerland, Saudi Arabia, Belgium, and the US. Empowered by the smart, versatile, cost-effective, and highly adaptable WeRide One platform, WeRide provides autonomous driving products and services from L2 to L4, addressing transportation needs in the mobility, logistics, and sanitation industries. WeRide was named to Fortune's 2025 Change the World and 2025 Future 50 lists.
About Uber
Uber’s mission is to create opportunity through movement. We started in 2010 to solve a simple problem: how do you get access to a ride at the touch of a button? More than 75 billion trips later, we're building products to get people closer to where they want to be. By changing how people, food, and things move through cities, Uber is a platform that opens up the world to new possibilities.
Safe Harbor Statement
This press release contains statements that may constitute “forward-looking” statements pursuant to the “safe harbor” provisions of the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as “will,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “likely to,” and similar statements. Statements that are not historical facts, including statements about WeRide and Uber’s beliefs, plans, and expectations, are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties. Further information regarding these and other risks is included in WeRide and Uber’s filings with the U.S. Securities and Exchange Commission and WeRide’s announcements on the website of the Hong Kong Stock Exchange. All information provided in this press release is as of the date of this press release. WeRide and Uber do not undertake any obligation to update any forward-looking statement, except as required under applicable law.
A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/d4d19717-37e4-442c-9b38-abdbdd579eb2
Stellantis, Wayve, and Uber Partner to Scale Robotaxis Globally
Stellantis, Wayve, and Uber are collaborating to develop and deploy L4 driverless mobility services By combining Stellantis’ world-class vehicle L4-Ready Platforms™, Wayve’s advanced AI Driver, and Uber’s leading mobility network, the companies seek to accelerate the global rollout of robotaxi services This strategic relationship builds on the companies’ existing collaborations together and reinforces a growing industry consensus that the most efficient way to scale autonomous mobility is through a powerful ecosystem AMSTERDAM, LONDON and SAN FRANCISCO, June 17, 2026 – Stellantis, Wayve, and Uber today announced they have entered a partnership to jointly explore the development and deployment of Level 4 (driverless) robotaxis at a global scale. The collaboration brings together Stellantis’ L4- Ready Platforms™, Wayve’s AI driving technology, and Uber’s global marketplace to power a new generation of fully autonomous vehicles. It also builds on the companies’ existing strategic relationships, including Stellantis and Wayve’s recent L2++ agreement, and Wayve and Uber’s partnership to deploy autonomous rides in London, Tokyo, and ten other cities around the world starting this year.
Partnering to Accelerate Scale
The new initiative intends to combine the three complementary strengths needed to commercialize autonomy: vehicles, technology, and platform.
Vehicles & Integration: Stellantis will design, engineer and manufacture at scale vehicles built on advanced L4-Ready Platforms™ that have embedded sensor suites and are engineered with the operational requirements, the safety and redundancy required for high-utilization driverless operations.AI Technology: Wayve will provide the AI driving software that enables the vehicles to understand and navigate complex real-world environments fully autonomously. Built with Wayve’s end-to-end AI driving approach, the technology is designed to adapt across different regions and driving conditions without relying on city-by-city mapping or re-engineering, enabling faster and more cost-effective expansion. Mobility Platform: Uber will deploy these autonomous vehicles on its global mobility network, connecting riders to autonomous trips through the Uber app and helping scale operations across markets. For customers, this brings the benefits of autonomous driving technology to the vehicles and marketplace they already know and trust.
“This collaboration brings us closer to delivering a smarter, safer and more efficient mobility for our customers,” said Ned Curic, Chief Engineering and Technology Officer at Stellantis. “By combining our L4-Ready Platforms™, designed from the ground up for safe and efficient driverless operation, with Wayve’s adaptive AI and Uber’s global network, we are accelerating the deployment of autonomous vehicles that meet real customer needs and enable seamless mobility at scale in everyday life.”
“This partnership brings together three leaders, each with our own strengths: Stellantis’ vehicle expertise, Uber’s global mobility platform and Wayve’s embodied AI,” said Kaity Fischer, Wayve’s VP of Commercial & Operations. “This is just another strong signal that the industry is converging around Wayve’s technology as the way to scale AVs globally, and we’re excited to continue working with Stellantis and Uber to accelerate the promise of autonomy.”
“Successfully scaling autonomous mobility means bringing together the right vehicles, technology, and platform in a seamless way,” said Sarfraz Maredia, Global Head of Autonomous Mobility & Delivery at Uber. “Together with Stellantis and Wayve, we’re excited to bring safe, reliable autonomy to more riders around the world.”
Bringing Autonomous Mobility to More Riders
As part of this collaboration, the companies plan to work together on vehicle integration, testing, validation, and deployment with the goal of bringing safe, reliable and scalable autonomous mobility services to cities across Europe, North America and beyond.
The strategic relationship represents a significant step toward commercial robotaxi services at scale and reinforces the ecosystem approach needed to democratize AV technology and bring it to millions of vehicles and riders around the world.
About the Collaboration
The non-binding Memorandum of Understanding (MoU) establishes the framework for future agreements covering technology development, licensing, production, and vehicle procurement. Each company retains the flexibility to pursue additional collaborations in the autonomous driving space.
###
About Stellantis
Stellantis (NYSE: STLA / Euronext Milan: STLAM / Euronext Paris: STLAP) is a leading global automaker, dedicated to giving its customers the freedom to choose the way they move, embracing the latest technologies and creating value for all its stakeholders. Its unique portfolio of iconic and innovative brands includes Abarth, Alfa Romeo, Chrysler, Citroën, Dodge, DS Automobiles, FIAT, Jeep®, Lancia, Maserati, Opel, Peugeot, Ram, Vauxhall, Free2move and Leasys. For more information, visit www.stellantis.com.
About Wayve
Founded in 2017, Wayve is the leading developer of Embodied AI technology for automated driving. Its advanced AI software and foundation models for autonomy enable vehicles to perceive, understand, and navigate any environment, enhancing the usability and safety of autonomous driving systems. Wayve develops mapless and hardware-agnostic Embodied AI products for automakers and fleet owners, accelerating the path from assisted to automated driving. To learn more, please visit www.wayve.ai.
About Uber
Uber’s mission is to create opportunity through movement. We started in 2010 to solve a simple problem: how do you get access to a ride at the touch of a button? More than 75 billion trips later, we’re building products to get people closer to where they want to be. By changing how people, food, and things move through cities, Uber is a platform that opens up the world to new possibilities.
This communication contains forward-looking statements. In particular, statements regarding future events and anticipated results of operations, business strategies, the anticipated benefits of the proposed transaction, future financial and operating results, the anticipated closing date for the proposed transaction and other anticipated aspects of our operations or operating results are forward-looking statements. These statements may include terms such as “may”, “will”, “expect”, “could”, “should”, “intend”, “estimate”, “anticipate”, “believe”, “remain”, “on track”, “design”, “target”, “objective”, “goal”, “forecast”, “projection”, “outlook”, “prospects”, “plan”, or similar terms. Forward-looking statements are not guarantees of future performance. Rather, they are based on Stellantis’ current state of knowledge, future expectations and projections about future events and are by their nature, subject to inherent risks and uncertainties. They relate to events and depend on circumstances that may or may not occur or exist in the future and, as such, undue reliance should not be placed on them. There can be no assurance that the contemplated transactions will be completed or that the expected scope or timing will be achieved.
Actual results may differ materially from those expressed in forward-looking statements as a result of a variety of factors, including: the ability of Stellantis to launch new products successfully and to maintain vehicle shipment volumes; changes in the global financial markets, general economic environment and changes in demand for automotive products, which is subject to cyclicality; Stellantis’ ability to successfully manage the industry-wide transition from internal combustion engines to full electrification; Stellantis’ ability to offer innovative, attractive products and to develop, manufacture and sell vehicles with advanced features including enhanced electrification, connectivity and autonomous-driving characteristics; Stellantis’ ability to produce or procure electric batteries with competitive performance, cost and at required volumes; Stellantis’ ability to successfully launch new businesses and integrate acquisitions; a significant malfunction, disruption or security breach compromising information technology systems or the electronic control systems contained in Stellantis’ vehicles; exchange rate fluctuations, interest rate changes, credit risk and other market risks; increases in costs, disruptions of supply or shortages of raw materials, parts, components and systems used in Stellantis’ vehicles; changes in local economic and political conditions; changes in trade policy, the imposition of global and regional tariffs or tariffs targeted to the automotive industry, the enactment of tax reforms or other changes in tax laws and regulations; the level of governmental economic incentives available to support the adoption of battery electric vehicles; the impact of increasingly stringent regulations regarding fuel efficiency requirements and reduced greenhouse gas and tailpipe emissions; various types of claims, lawsuits, governmental investigations and other contingencies, including product liability and warranty claims and environmental claims, investigations and lawsuits; material operating expenditures in relation to compliance with environmental, health and safety regulations; the level of competition in the automotive industry, which may increase due to consolidation and new entrants; Stellantis’ ability to attract and retain experienced management and employees; exposure to shortfalls in the funding of Stellantis’ defined benefit pension plans; Stellantis’ ability to provide or arrange for access to adequate financing for dealers and retail customers and associated risks related to the operations of financial services companies; Stellantis’ ability to access funding to execute its business plan; Stellantis’ ability to realize anticipated benefits from joint venture arrangements; disruptions arising from political, social and economic instability; risks associated with Stellantis’ relationships with employees, dealers and suppliers; Stellantis’ ability to maintain effective internal controls over financial reporting; developments in labor and industrial relations and developments in applicable labor laws; earthquakes or other disasters; risks and other items described in Stellantis’ Annual Report on Form 20-F for the year ended December 31, 2025 and Current Reports on Form 6-K and amendments thereto filed with the SEC; and other risks and uncertainties.
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Since my prior "Buy" article in March, Alphabet has continued to outperform the S&P 500 index. The company's robust Q1 2026 results were powered by explosive growth in Google Cloud, continued double-digit percentage growth in Google Search, and scaling consumer AI and subscriptions. Google boasts an AA+ S&P credit rating with a stable outlook.
Although the AI buildout has minted trillions in fresh market value across Wall Street, Howard Marks thinks buyers of these stocks are kidding themselves about what they actually own. On a recent Prof G Markets appearance, Oaktree Capital co-founder Marks laid out a spectrum running from “analytical investing in prosaic, understandable companies” to “speculative investing in futuristic companies that can’t be described at all.” Most of today’s AI darlings, he argued, sit much closer to the speculative end than buyers want to admit.
Speculation, in his telling, is forecasting without honestly accounting for the probability that your forecast is wrong. Analysis is grounded in cash flow you can actually model. For more context on how this cycle compares with prior buildouts, see our earlier piece on the AI capex boom and its historical parallels.
What’s particularly notable is the valuation backdrop he is working against. Marks pointed out that the Shiller CAPE ratio is near 42, close to its dot-com peak of 44, while the standard S&P 500 PE sits around 23 versus an 80-year average of 16. The benchmark S&P 500 is not priced for disappointment, and the technology-packed Nasdaq Composite is leaning harder on a single thesis than at any moment since 1999.
Marks’s Risk Ladder, Applied Marks named names. The lower-risk way to own the AI theme runs through the hyperscalers. Amazon, Google, Meta, and Microsoft have “established businesses with moats, enormous operating cash flow” that fund the buildout without betting the company. One layer up the risk ladder sit names like Anthropic and Nvidia, which Marks believes have “a high probability of still being successful 5 or 10 years from now.” At the top sit private AI startups, which Marks compared bluntly to lottery tickets: “most people who buy lottery tickets lose all their money. A few people become incredibly rich.”
The host’s pushback was fair. Companies like OpenAI and Anthropic burn cash and still command enormous valuations because revenue is compounding. Does profitability even matter? Marks’s answer was a thought experiment: ask anyone to name Anthropic’s net earnings in 2036, and “I’ll bet them that they’re not within 50% of the truth.” If you cannot model the cash flows within a country mile, you are guessing.
That distinction matters because the numbers funding this thesis are real. NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) just printed $81.6 billion in Q1 FY27 revenue, up 85% year over year, with data center networking alone growing 199%. CEO Jensen Huang called it “the largest infrastructure expansion in human history.” Nvidia carries $119 billion in supply-related commitments against that thesis, which the company puts at a 31x trailing PE and 23x forward. The shares trade at $205.19, up 42% over the past year.
The Hyperscaler Bill Is Roughly $600 Billion The capex Marks is implicitly skeptical of has reached eye-watering scale. Amazon (NASDAQ:AMZN) plans roughly $200 billion in 2026 capex, which has compressed trailing free cash flow to a thin trickle and pushed the stock to a forward PE near 31. Alphabet (NASDAQ:GOOGL) guided $175 billion to $185 billion in 2026 capex, and Meta Platforms (NASDAQ:META) raised its own range to $125 billion to $145 billion while absorbing a $4.03 billion Reality Labs operating loss in a single quarter. Microsoft (NASDAQ:MSFT) is running an AI business at a $37 billion annual run rate, up 123% year over year, with a commercial RPO of $627 billion backing the thesis.
Combined hyperscaler 2026 AI spending sits north of $600 billion. The numbers are real. So is the moat. Disclosure: I own Alphabet, Meta, and Nvidia. I read Marks’s most recent filings with the same care I give his memos, and Google’s 16x earnings still looks like the cheapest seat in the cohort. Our prior coverage of Alphabet’s valuation gap walks through why that discount has persisted.
The Mirror From 1999 History tells us what happens when the cash-flow gap between leaders and aspirants gets ignored. Cisco peaked at roughly 150 times earnings in March 2000, and the Nasdaq Composite lost about 78% peak to trough by late 2002. The infrastructure thesis was correct. Fiber did transform the economy. The stocks still got cut in half, and then in half again, before the survivors compounded for the next twenty years.
The market is not asleep to this. The VIX has climbed to 19.44, the 75th percentile of its 12-month range, and the 10-year minus 2-year Treasury spread has compressed from 0.74% in February to 0.39%. Meta and Microsoft are down 18% over the past year, even as Alphabet has doubled. The herd is no longer moving as one.
The Takeaway Marks’s larger point is that uncertainty is not a reason to avoid investing. Long term, Wall Street still heads higher in the decades to come, and the hyperscalers may well earn back every dollar of this capex with interest. But buying Anthropic on a tweet, or sizing Nvidia like it is a Treasury bond, is a different activity than the one Benjamin Graham described. It is closer to speculating. Call it what it is, size it accordingly, and you can still play.
Alphabet (GOOG +2.50%) (GOOGL +2.56%) initiated a dividend about two years ago, paying a minuscule $0.20 per share each quarter. It's since raised that dividend to $0.22 per quarter, for a yield of approximately 0.24% on its common stock. That's not exactly a dividend that has income investors salivating.
But investors searching for yield and exposure to the massive AI stock now have another option. Alphabet recently raised $85 billion in capital by issuing new equity. About 20% of that came in the form of mandatory convertible preferred stock. Those shares currently yield over 6%, and you can buy them right now under the tickers GOOGM (tied to Class A common stock) and GOOGN (tied to Class C shares).
But there are a few important details you'll need to know before pulling the trigger on Alphabet's new high-yield shares.
Image source: The Motley Fool.
What exactly is this share class? First, it's important to understand exactly what you're buying when you buy a share in one of Alphabet's new issues.
The shares are preferred stock. Preferred stock is a class of shares that have priority over common stock in the case of a liquidation event. They typically pay a fixed dividend, and that gets paid before the common stock dividend.
The shares issued by Alphabet are convertible to common stock, which means their value is also influenced by changes in the value of common stock. In fact, they're mandatory convertible shares, and all shareholders will see shares convert to their corresponding common stock on May 15, 2029.
That's important, because once the shares convert, the dividend yield will drop to whatever Alphabet pays on its common stock. That 6% yield will only last for the next three years. Investors looking for long-term income from their portfolio should probably look at other high-yield investment options.
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Meanwhile, investors need to note the conversion rate. The number of shares each issue converts into is capped for both the upside and the downside. Shares will convert into a maximum of 0.1408 (Class A) or 0.1421 (Class C) shares, regardless of the share price. That means that if the stocks trade below about $355 (Class A) or $352 (Class C) at the time of conversion, the preferred shares will participate in any further downside.
Likewise, the minimum number of shares for conversion is 0.1126 (Class A) and 0.1137 (Class C). As a result, shares will be worth the same amount at conversion until the shares reach $444 (Class A) and $440 (Class C). The shares will then participate fully in any upside from those prices.
It's important to note that Class A and Class C Alphabet common stock currently trade very close to their downside cutoffs. Meanwhile, the upside cutoffs represent annualized returns above the 6% yield on the preferred shares. So, for the preferred shares to prove a good investment over the next three years, investors are betting that Alphabet shares will trade modestly higher, but not well past the high end of the conversion range.
While the preferred shares offer an interesting option for investors seeking income while maintaining exposure to Alphabet, most investors bullish on the company will be better off buying the common stock.
