SoundHound AI, Inc. (SOUN - Free Report) ended the recent trading session at $6.46, demonstrating a -1.45% change from the preceding day's closing price. The stock's performance was behind the S&P 500's daily loss of 0.14%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq lost 0.57%.
Heading into today, shares of the company had gained 1.79% over the past month, outpacing the Computer and Technology sector's loss of 4.82% and the S&P 500's gain of 0.25%.
The investment community will be closely monitoring the performance of SoundHound AI, Inc. in its forthcoming earnings report. The company's upcoming EPS is projected at -$0.05, signifying a 66.67% drop compared to the same quarter of the previous year. Meanwhile, the latest consensus estimate predicts the revenue to be $52.49 million, indicating a 22.99% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates are projecting earnings of -$0.18 per share and revenue of $233.16 million, which would represent changes of -38.46% and +38.03%, respectively, from the prior year.
Investors should also pay attention to any latest changes in analyst estimates for SoundHound AI, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable 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 remained stagnant. Currently, SoundHound AI, Inc. is carrying a Zacks Rank of #3 (Hold).
The Computers - IT Services industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 64, placing it within the top 27% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow SOUN in the coming trading sessions, be sure to utilize Zacks.com.
Reddit Inc. (RDDT - Free Report) closed at $170.38 in the latest trading session, marking a -8.32% move from the prior day. This change lagged the S&P 500's daily loss of 0.14%. Meanwhile, the Dow experienced a drop of 0.01%, and the technology-dominated Nasdaq saw a decrease of 0.57%.
Shares of the company have appreciated by 12.2% over the course of the past month, outperforming the Computer and Technology sector's loss of 4.82%, and the S&P 500's gain of 0.25%.
The investment community will be closely monitoring the performance of Reddit Inc. in its forthcoming earnings report. The company is scheduled to release its earnings on July 30, 2026. The company is predicted to post an EPS of $0.99, indicating a 120% growth compared to the equivalent quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $744.94 million, up 49.1% from the year-ago period.
Regarding the entire year, the Zacks Consensus Estimates forecast earnings of $4.85 per share and revenue of $3.25 billion, indicating changes of +85.11% and +47.51%, respectively, compared to the previous year.
Investors should also pay attention to any latest changes in analyst estimates for Reddit Inc. These recent revisions tend to reflect the evolving nature of short-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 utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 0.33% higher. Reddit Inc. presently features a Zacks Rank of #3 (Hold).
From a valuation perspective, Reddit Inc. is currently exchanging hands at a Forward P/E ratio of 38.32. This indicates a premium in contrast to its industry's Forward P/E of 19.55.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 104, placing it within the top 43% of over 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.
To follow RDDT in the coming trading sessions, be sure to utilize Zacks.com.
Rogers Communications Inc. remains a value/income play for patient investors, despite recent underperformance. RCI's undervaluation thesis centers on rising free cash flow and untapped sports/media asset value. Material upside hinges on confirming MLSE's value and meaningful debt reduction.
OneSpan (OSPN - Free Report) closed the most recent trading day at $15.15, moving -1.75% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.14%. On the other hand, the Dow registered a loss of 0.01%, and the technology-centric Nasdaq decreased by 0.57%.
Shares of the internet security company have appreciated by 13.72% over the course of the past month, outperforming the Computer and Technology sector's loss of 4.82%, and the S&P 500's gain of 0.25%.
The investment community will be paying close attention to the earnings performance of OneSpan in its upcoming release. The company is slated to reveal its earnings on August 4, 2026. The company is expected to report EPS of $0.25, down 26.47% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $57.75 million, indicating a 3.49% decrease compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $1.23 per share and a revenue of $246.53 million, indicating changes of -17.45% and +1.38%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for OneSpan. These recent revisions tend to reflect the evolving nature of short-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, OneSpan boasts a Zacks Rank of #3 (Hold).
With respect to valuation, OneSpan is currently being traded at a Forward P/E ratio of 12.54. This valuation marks a discount compared to its industry average Forward P/E of 19.55.
We can additionally observe that OSPN currently boasts a PEG ratio of 1.14. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software was holding an average PEG ratio of 1.06 at yesterday's closing price.
The Internet - Software industry is part of the Computer and Technology sector. This industry, currently bearing a Zacks Industry Rank of 104, finds itself in the top 43% echelons 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
In the latest trading session, GigaCloud Technology Inc. (GCT - Free Report) closed at $37.10, marking a -3.61% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.14%. Elsewhere, the Dow saw a downswing of 0.01%, while the tech-heavy Nasdaq depreciated by 0.57%.
The company's shares have seen an increase of 15.55% over the last month, surpassing the Business Services sector's gain of 4.1% and the S&P 500's gain of 0.25%.
The investment community will be closely monitoring the performance of GigaCloud Technology Inc. in its forthcoming earnings report. The company's earnings per share (EPS) are projected to be $0.85, reflecting a 6.59% decrease from the same quarter last year. Our most recent consensus estimate is calling for quarterly revenue of $383.7 million, up 18.94% from the year-ago period.
For the annual period, the Zacks Consensus Estimates anticipate earnings of $4.18 per share and a revenue of $1.53 billion, signifying shifts of +16.43% and +18.96%, respectively, from the last year.
Any recent changes to analyst estimates for GigaCloud Technology Inc. should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. 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 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. Over the past month, the Zacks Consensus EPS estimate has remained steady. GigaCloud Technology Inc. is currently a Zacks Rank #3 (Hold).
From a valuation perspective, GigaCloud Technology Inc. is currently exchanging hands at a Forward P/E ratio of 9.21. This denotes a discount relative to the industry average Forward P/E of 16.41.
The Technology Services industry is part of the Business Services sector. At present, this industry carries a Zacks Industry Rank of 98, placing it within the top 40% of over 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.
Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.
On a slightly down Wednesday for the stock market, Sandisk's (SNDK +0.69%) equity landed in positive territory. On the back of an analyst's price target raise, the storied memory module specialist finished the trading session 0.6% higher, eclipsing the 0.1% dip of the bellwether S&P 500 index.
More bullish, but not bullish enough Almost exactly two weeks before Sandisk is scheduled to publish its fiscal fourth quarter of 2026 results, Aaron Rakers of influential bank Wells Fargo made that move. He increased his price target on the specialized tech stock substantially, to $1,620 per share from $1,250.
Image source: Getty Images.
That didn't quite make him a bull on Sandisk, as he maintained his equal weight (i.e., hold) recommendation.
According to reports, Rakers wrote that the company has good momentum just now, with increases in long-term, multi-year supply contracts with major cloud computing and data center clients. He also waxed optimistic about Sandisk's strength in the high-end enterprise solid-state drive (eSSD) segment of the market, among other positive factors.
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Critical supply Sandisk has done well as a go-to provider of flash memory (its specialty) for the many clients on the market looking to ramp up artificial intelligence (AI) compute. For believers in the longevity and power of the AI revolution, like myself, the company is a fine play on this.
I'm more bullish than Rakers on the company's future, and while the stock is expensive, it sure looks like a buy to me.
Wells Fargo is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
SL Green (SLG - Free Report) came out with quarterly funds from operations (FFO) of $1.43 per share, beating the Zacks Consensus Estimate of $1.19 per share. This compares to FFO of $1.63 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an FFO surprise of +20.17%. A quarter ago, it was expected that this commercial real estate investment trust would post FFO of $1.06 per share when it actually produced FFO of $0.84, delivering a surprise of -20.75%.
Over the last four quarters, the company has surpassed consensus FFO estimates three times.
SL Green, which belongs to the Zacks REIT and Equity Trust - Other industry, posted revenues of $171.85 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.21%. This compares to year-ago revenues of $147.54 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future FFO expectations will mostly depend on management's commentary on the earnings call.
SL Green shares have added about 10.8% since the beginning of the year versus the S&P 500's gain of 9.7%.
What's Next for SL Green?While SL Green has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's FFO outlook. Not only does this include current consensus FFO expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of estimate revisions.
Ahead of this earnings release, the estimate revisions trend for SL Green was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus FFO estimate is $1.16 on $174.14 million in revenues for the coming quarter and $4.61 on $687.33 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, REIT and Equity Trust - Other is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Rexford Industrial (REXR - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on July 23.
This industrial real estate investment trust is expected to post quarterly earnings of $0.60 per share in its upcoming report, which represents a year-over-year change of +1.7%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Rexford Industrial's revenues are expected to be $246.07 million, down 1.4% from the year-ago quarter.
SL Green (SLG - Free Report) reported $171.85 million in revenue for the quarter ended June 2026, representing a year-over-year increase of 16.5%. EPS of $1.43 for the same period compares to -$0.16 a year ago.
The reported revenue represents a surprise of +0.21% over the Zacks Consensus Estimate of $171.48 million. With the consensus EPS estimate being $1.19, the EPS surprise was +20.17%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how SL Green performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Revenues- SUMMIT Operator revenue: $31.51 million versus $33.8 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +1.6% change.Revenues- Other income: $3.78 million versus $26.65 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -79.4% change.Net Earnings Per Share (Diluted): $-0.38 versus the three-analyst average estimate of $-0.56.View all Key Company Metrics for SL Green here>>>
Shares of SL Green have returned +1.4% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Ondas (ONDS +4.44%), a drone networking and autonomous defense systems provider, closed at $8.00, up 4.44%. Premarket, the company announced $70 million in new orders over the past month, and investors are watching the execution of the order backlog next. Trading volume reached 171.9M shares, coming in about 107% above its three-month average of 82.9M shares. Ondas IPO'd in 2020 and has grown 30% since going public.
How the markets moved todayThe S&P 500 (^GSPC -0.14%) fell 0.13% to 7,499, while the Nasdaq Composite (^IXIC -0.57%) dropped 0.57% to 25,691. Among aerospace & defense peers in private wireless, drone, and counter-UAS systems, AeroVironment closed at $150.35, up 1.01%, while Red Cat Holdings finished at $7.83, down 8.85%, underscoring uneven sentiment across the group.
What this means for investorsAfter seeing its stock nearly halve from $12 to $6 since the start of June, drone-focused Ondas has rebounded nicely over the last week, announcing $70 million in new orders over the last four weeks. This figure is attention-grabbing because it shows a sharp rise from $40 million in June and $30 million in May, indicating an acceleration in growth.
Buoyed by this burgeoning order book, a backlog of over $450 million, and $1.4 billion in cash available for use with the company’s serial acquisition strategy, Ondas and its management believe it will generate $525 million in sales in 2026. Compared to the company’s market cap of $4.4 billion, this growth is an interesting story to monitor. That said, Ondas is relying heavily upon shareholder dilution to fund its voracious appetite for M&A -- shares outstanding have doubled over the last year -- so ONDS stock will remain a highly volatile, high-risk, high-reward proposition.
New York, New York and New Orleans, Louisiana--(Newsfile Corp. - July 22, 2026) - Kahn Swick & Foti, LLC ("KSF") and KSF partner, former Attorney General of Louisiana, Charles C. Foti, Jr., remind investors with substantial losses that they have until August 25, 2026 to file lead plaintiff applications in a securities class action lawsuit against Futu Holdings Limited ("Futu" or the "Company") (NASDAQ: FUTU), if they purchased or otherwise acquired the Company's securities between May 24, 2023 and May 27, 2026, inclusive (the "Class Period"). This action is pending in the United States District Court for the Southern District of New York.
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What You May Do
If you purchased securities of Futu as above and would like to discuss your legal rights and how this case might affect you and your right to recover for your economic loss, you may, without obligation or cost to you, contact KSF Managing Partner Lewis Kahn toll-free at 1-833-538-3653 or via email ([email protected]), or visit https://www.ksfcounsel.com/cases/nasdaqgm-futu/ to learn more. If you wish to serve as a lead plaintiff in this class action, you must petition the Court by August 25, 2026.
>>>CLICK HERE for more information
About the Lawsuit
Futu and certain of its executives are charged with failing to disclose material information during the Class Period, violating federal securities laws.
The alleged false and misleading statements and omissions include, but are not limited to, that: (i) the Company was not in compliance with the requirements of the China Securities Regulatory Commission, including because it continued to conduct securities business, public fund sales business and futures business in mainland China without obtaining the requisite licenses or approval; (ii) as a result, the Company was reasonably likely to face regulatory penalties, including the disgorgement of ill-gotten gains and other penalties; (iii) as a result of the foregoing, the Company's financial results were overstated; and (iv) as a result of the foregoing, defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
The case is Tang v. Futu Holdings Limited, et al, 26-cv-05453.
>>>To Learn More, Click HERE
About Kahn Swick & Foti, LLC
KSF, whose partners include former Louisiana Attorney General Charles C. Foti, Jr., is one of the nation's premier boutique securities litigation law firms. This past year, KSF was ranked by SCAS among the top 10 firms nationally based upon total settlement value. KSF serves a variety of clients, including public and private institutional investors, and retail investors - in seeking recoveries for investment losses emanating from corporate fraud or malfeasance by publicly traded companies. KSF has offices in New York, Delaware, California, Louisiana, Chicago, and a representative office in Luxembourg.
TOP 10 Plaintiff Law Firms - According to ISS Securities Class Action Services
To learn more about KSF, you may visit www.ksfcounsel.com.
>>>For More Information about the case, Click HERE
Blue Bird (BLBD - Free Report) ended the recent trading session at $80.20, demonstrating a -1.33% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.14% for the day. On the other hand, the Dow registered a loss of 0.01%, and the technology-centric Nasdaq decreased by 0.57%.
Coming into today, shares of the school bus maker had gained 10.26% in the past month. In that same time, the Auto-Tires-Trucks sector lost 4.03%, while the S&P 500 gained 0.25%.
The investment community will be closely monitoring the performance of Blue Bird in its forthcoming earnings report. In that report, analysts expect Blue Bird to post earnings of $1.22 per share. This would mark year-over-year growth of 2.52%. Meanwhile, the latest consensus estimate predicts the revenue to be $498.7 million, indicating a 25.3% increase compared to the same quarter of the previous year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $4.74 per share and revenue of $1.74 billion. These totals would mark changes of +8.22% and +17.88%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Blue Bird. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research shows that these estimate changes are directly correlated with near-term stock prices. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable 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 last 30 days, the Zacks Consensus EPS estimate has moved 3.45% higher. Currently, Blue Bird is carrying a Zacks Rank of #3 (Hold).
Investors should also note Blue Bird's current valuation metrics, including its Forward P/E ratio of 17.15. Its industry sports an average Forward P/E of 19.24, so one might conclude that Blue Bird is trading at a discount comparatively.
It's also important to note that BLBD currently trades at a PEG ratio of 1.04. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The average PEG ratio for the Automotive - Domestic industry stood at 1.04 at the close of the market yesterday.
The Automotive - Domestic industry is part of the Auto-Tires-Trucks sector. This group has a Zacks Industry Rank of 105, putting it in the top 43% of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Oscar Health, Inc. (OSCR - Free Report) ended the recent trading session at $29.50, demonstrating a -4.13% change from the preceding day's closing price. The stock fell short of the S&P 500, which registered a loss of 0.14% for the day. Elsewhere, the Dow saw a downswing of 0.01%, while the tech-heavy Nasdaq depreciated by 0.57%.
Shares of the company have appreciated by 2.81% over the course of the past month, outperforming the Finance sector's gain of 2.55%, and the S&P 500's gain of 0.25%.
The upcoming earnings release of Oscar Health, Inc. will be of great interest to investors. The company's earnings report is expected on August 6, 2026. It is anticipated that the company will report an EPS of $0.45, marking a 150.56% rise compared to the same quarter of the previous year. Alongside, our most recent consensus estimate is anticipating revenue of $4.89 billion, indicating a 70.85% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of $0.59 per share and revenue of $18.77 billion, which would represent changes of +134.91% and +60.4%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for Oscar Health, Inc. Recent revisions tend to reflect the latest near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, stretching from #1 (Strong Buy) to #5 (Strong Sell), has a noteworthy track record of outperforming, validated by third-party audits, with stocks rated #1 producing an average annual return of +25% since the year 1988. Over the past month, the Zacks Consensus EPS estimate has moved 24.82% higher. Oscar Health, Inc. is holding a Zacks Rank of #1 (Strong Buy) right now.
Valuation is also important, so investors should note that Oscar Health, Inc. has a Forward P/E ratio of 52.45 right now. This signifies a premium in comparison to the average Forward P/E of 10.02 for its industry.
Also, we should mention that OSCR has a PEG ratio of 1.72. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. OSCR's industry had an average PEG ratio of 1.06 as of yesterday's close.
The Insurance - Multi line industry is part of the Finance sector. At present, this industry carries a Zacks Industry Rank of 169, placing it within the bottom 32% of over 250 industries.
The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Powell Industries (POWL - Free Report) ended the recent trading session at $240.68, demonstrating a -1.52% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.14%. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq lost 0.57%.
Heading into today, shares of the energy equipment company had lost 16.16% over the past month, lagging the Industrial Products sector's loss of 3.37% and the S&P 500's gain of 0.25%.
Market participants will be closely following the financial results of Powell Industries in its upcoming release. The company plans to announce its earnings on August 3, 2026. The company is predicted to post an EPS of $1.49, indicating a 12.88% growth compared to the equivalent quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $318.25 million, indicating a 11.17% growth compared to the corresponding quarter of the prior year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $5.47 per share and revenue of $1.2 billion. These totals would mark changes of +10.51% and +8.73%, respectively, from last year.
It is also important to note the recent changes to analyst estimates for Powell Industries. These latest adjustments often mirror the shifting dynamics of short-term business patterns. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent 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, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has remained steady. As of now, Powell Industries holds a Zacks Rank of #3 (Hold).
Looking at valuation, Powell Industries is presently trading at a Forward P/E ratio of 44.68. This valuation marks a premium compared to its industry average Forward P/E of 22.68.
It is also worth noting that POWL currently has a PEG ratio of 3.19. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The Manufacturing - Electronics was holding an average PEG ratio of 1.61 at yesterday's closing price.
The Manufacturing - Electronics industry is part of the Industrial Products sector. This industry currently has a Zacks Industry Rank of 105, which puts it in the top 43% of all 250+ industries.
The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Ensure to harness Zacks.com to stay updated with all these stock-shifting metrics, among others, in the next trading sessions.
Waste Connections (WCN - Free Report) came out with quarterly earnings of $1.5 per share, beating the Zacks Consensus Estimate of $1.35 per share. This compares to earnings of $1.29 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +11.11%. A quarter ago, it was expected that this solid waste services provider would post earnings of $1.19 per share when it actually produced earnings of $1.23, delivering a surprise of +3.36%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Waste Connections, which belongs to the Zacks Waste Removal Services industry, posted revenues of $2.56 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 1.06%. This compares to year-ago revenues of $2.41 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Waste Connections shares have lost about 4% since the beginning of the year versus the S&P 500's gain of 9.7%.
What's Next for Waste Connections?While Waste Connections has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Waste Connections was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.51 on $2.59 billion in revenues for the coming quarter and $5.49 on $10 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Waste Removal Services is currently in the top 38% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Select Water Solutions, Inc. (WTTR - Free Report) , is yet to report results for the quarter ended June 2026.
This company is expected to post quarterly earnings of $0.11 per share in its upcoming report, which represents a year-over-year change of +10%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Select Water Solutions, Inc.'s revenues are expected to be $365.9 million, up 0.5% from the year-ago quarter.
SpaceX (SPCX -6.70%) is once again looking to launch a test flight of its Starship megarocket. Investors should be paying very close attention, as the impact on SpaceX’s stock price should be meaningful.
After several aborted attempts, the company is looking to complete the rocket’s thirteenth test flight on July 23. As with most SpaceX launches, the attempt will be livestreamed via the company’s website.
“The booster’s primary test objective will be executing a successful launch, ascent, stage separation, boostback burn, and landing burn at an offshore landing point in the Gulf of America,” SpaceX explains. “There have been several modifications to hardware and software to address issues seen on the previous flight.”
The impact of this test flight for SpaceX cannot be overstated. In many ways, SpaceX’s long-term growth plans hinge on the company’s ability to successfully commercialize its Starship rocket.
If you’re a current or potential SpaceX investor, there are two things you need to know.
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1. Starship is critical for SpaceX growth plansIn its IPO prospectus filed earlier this year, SpaceX was not shy about predicting its growth potential.
“We believe we have identified the largest actionable total addressable market in human history,” the company boasted. “We estimate that our quantifiable TAM is $28.5 trillion.”
Digging deeper, it may be surprising to learn that SpaceX attributes just $370 billion to what it calls “space-enabled solutions”. That bucket includes the total revenue potential of commercializing its Starship rockets.
With a market cap well above $2 trillion, successfully commercializing rockets may not seem critical to SpaceX’s long-term plan, given its relatively low growth potential. But investors must understand that the success of SpaceX’s Starship rocket will enable other growth opportunities that are much more lucrative long term. In other words, Starship’s value won’t be relegated to payload fees alone.
For example, SpaceX attributes $1.6 trillion of its total addressable market to its Starlink internet service. If successful, its Starship rocket would dramatically increase the number of satellites SpaceX can launch in any given year while also lowering the cost of getting them into space.
In other words, SpaceX’s Starship rocket will increase the odds that SpaceX will be able to realize as much of its claimed $1.6 trillion opportunity as possible.
Meanwhile, SpaceX attributes a massive $26.5 trillion of its total $28.5 trillion addressable market to a single opportunity: AI. While this bucket contains many smaller opportunities, one of SpaceX’s biggest growth catalysts should be the realization of orbital data centers.
Orbital data centers are exactly what they sound like: data centers that operate in space. In space, data centers can take better advantage of solar energy and low ambient temperatures, lowering ongoing operating costs.
There are many technical challenges to getting data centers to operate successfully in space. One of the biggest, however, is simply getting these systems into space economically. If successful, SpaceX’s Starship rocket would meaningfully improve the company’s chances of doing so.
Image Source: Getty Images
2. Competition for Starship is heating upSpaceX’s rocket program is arguably the most advanced rocket program on the planet. But there’s rising investment across the industry, which will create more competition for SpaceX over the coming months and years.
Government entities like China’s CNSA and India’s ISRO are pursuing their own rocket developments. Meanwhile, private companies, including Blue Origin, Rocket Lab (RKLB +0.91%), and Relativity Space are also aggressively pursuing the development of their own rocket systems.
SpaceX’s rocket program, however, is unique in terms of its vertical integration.
“SpaceX has also effectively achieved a high degree of vertical integration,” observes Government Technology, a public sector magazine. “It owns almost all parts of its supply chain, designing, building, and testing all its major hardware components in-house, with a minimal use of suppliers. That gives it not just control over its hardware but considerably lower costs, and the price tag is the top consideration for launch contracts.”
It’s hard to disagree about SpaceX’s success, both in terms of its launch achievements and its cost competitiveness. But it’s also clear that competition is heating up.
If SpaceX’s upcoming test flight is successful, that will help clear the path for the full commercialization of Starship. In this scenario, SpaceX will once again put itself ahead of the pack in terms of both technology and launch costs. Both of those factors will prove critical to the company’s ability to execute on its long-term growth potential.
SpaceX’s rocket program is arguably the most advanced rocket program on the planet. But there’s rising investment across the industry, a fact that will create more competition for SpaceX over the coming months and years.
SummaryApple remains rated Sell, as its valuation is highly stretched despite recent momentum and new product initiatives.Key watchpoints for Q3 include gross margin resilience amid rising memory costs, service segment growth, and the impact of recent price hikes.Tim Cook's final earnings call and the CEO transition to John Ternus introduce additional uncertainty around capital allocation and strategic continuity.AAPL trades at a P/E of nearly 40, outpacing faster-growing peers, with a free cash flow yield at a decade low of 2.7%. Getty Images
Introduction It has been a while since I last covered Apple Inc. (AAPL), and it has gained about 20% since my last Sell rating, and it (nearly) reclaimed the crown of the most valuable publicly listed company in the world. With
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of META either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Meta Platforms (META - Free Report) ended the recent trading session at $627.17, demonstrating a -2.58% change from the preceding day's closing price. This change lagged the S&P 500's 0.14% loss on the day. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, lost 0.57%.
The social media company's stock has climbed by 14.52% in the past month, exceeding the Computer and Technology sector's loss of 4.82% and the S&P 500's gain of 0.25%.
Market participants will be closely following the financial results of Meta Platforms in its upcoming release. The company plans to announce its earnings on July 29, 2026. The company's upcoming EPS is projected at $7.13, signifying a 0.14% drop compared to the same quarter of the previous year. Our most recent consensus estimate is calling for quarterly revenue of $60.17 billion, up 26.63% from the year-ago period.
For the full year, the Zacks Consensus Estimates project earnings of $33.03 per share and a revenue of $253.26 billion, demonstrating changes of +40.61% and +26.02%, respectively, from the preceding year.
Investors should also note any recent changes to analyst estimates for Meta Platforms. These latest adjustments often mirror the shifting dynamics of short-term business patterns. As such, positive estimate revisions reflect analyst optimism about the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Within the past 30 days, our consensus EPS projection has moved 2.34% higher. Currently, Meta Platforms is carrying a Zacks Rank of #3 (Hold).
In terms of valuation, Meta Platforms is presently being traded at a Forward P/E ratio of 19.49. This signifies a discount in comparison to the average Forward P/E of 19.55 for its industry.
Investors should also note that META has a PEG ratio of 0.97 right now. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Internet - Software industry had an average PEG ratio of 1.06 as trading concluded yesterday.
The Internet - Software industry is part of the Computer and Technology sector. At present, this industry carries a Zacks Industry Rank of 104, placing it within the top 43% of over 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.
Tesla reports adjusted earnings of 33 cents a share for the second quarter. That was well short of the 51-cent average of analyst estimates compiled by Bloomberg.
SummaryTesla, Inc. delivered a solid revenue result in Q2, but earnings fell dramatically short of street estimates.Short-term performance was driven by strong auto sales amid high gas prices, shifting focus from long-term autonomous ambitions.TSLA stock trades at a substantial premium to the auto space and tech giants, but recent results don't justify this valuation. jetcityimage/iStock Editorial via Getty Images
After the bell on Wednesday, we received second quarter results from Tesla, Inc. (TSLA). The electric vehicle maker had a strong sales period thanks to higher gas prices amidst the U.S.
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Investors are always reminded that before making any investment, you should do your own proper due diligence on any name directly or indirectly mentioned in this article. Investors should also consider seeking advice from a broker or financial adviser before making any investment decisions. Any material in this article should be considered general information, and not relied on as a formal investment recommendation.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Tesla on Wednesday missed analysts’ profit forecasts for the second quarter and, for the first time in more than two years, reported negative free cash flow as the Elon Musk-led EV maker accelerated spending on infrastructure for its AI and robotics ambitions.
Shares were down about 2.5% in extended trading.
Musk plans to spend more than $25 billion this year, nearly triple last year’s $8.53 billion, as he bets on Tesla’s AI-powered self-driving technology and robotics, over its auto business, which still is the core revenue generator.
Tesla CEO Elon Musk plans to spend more than $25 billion this year, nearly triple last year’s $8.53 billion. dpa/picture alliance via Getty Images But the pivot is expensive, and while much of Tesla’s valuation hangs on the promise of potentially high-margin revenue streams, the spending is heightening investor scrutiny.
Thomas Monteiro, senior analyst at Investing.com, said it could become difficult for Tesla to keep up with its recent capital-spending pace as its cash burn worsens.
“Given that most of the Tesla premium rests on future narratives, every capex dollar Tesla commits will be judged more harshly than it was a year ago,” he said.
Adjusted profit in the quarter ended June 30 was 33 cents per share, versus analysts’ average expectation of 51 cents per share, according to data compiled by LSEG.
Tesla’s profitability was hurt by higher operating expenses driven by AI, lower average selling prices and weaker regulatory credit revenue even as vehicle deliveries rose, the EV maker said on Wednesday.
Capital expenditure in the quarter came in at $5.8 billion, compared with the expectation of about $6.2 billion.
Tesla’s profitability was hurt by higher operating expenses driven by AI, lower average selling prices and weaker regulatory credit revenue even as vehicle deliveries rose. Hernan Ogallar/EPA/Shutterstock Tesla reported negative free cash flow of $1.1 billion, compared with analysts’ expectation for cash burn of $3.3 billion.
“This is a massive capex year, but I’m confident that all the things that we are investing in will yield incredible returns,” Musk told analysts on a post-earnings conference call.
EV sales in the quarter helped assuage some fears for now. Tesla delivered 480,126 vehicles in the second quarter, above Wall Street expectations and up from 384,122 vehicles a year earlier.
The Austin, Texas-based automaker reported revenue of $28.24 billion for the three months ended June 30, compared with analysts’ average estimate of $25.71 billion.
Automotive gross margin came in at 16.3%, compared with the expectation of 18.04%, according to Visible Alpha data.
Tesla also deployed 13.5 GWh of energy storage products in the quarter, up from 8.8 GWh in the first quarter and 9.6 GWh a year earlier.
Investors have increasingly turned their attention to Musk’s push into self-driving technology and robotics. CFOTO/Future Publishing via Getty Images Automotive business under pressure But the core automotive business remains under scrutiny as competitors introduce newer models, often at lower price points, while the company continues to rely heavily on its Model 3 compact sedans and Model Y SUVs for volume.
Tesla has tried to stimulate demand through lower-priced trims, including stripped-down, affordable versions of the Model 3 and Model Y late last year, and the launch this month of a six-seater variant of the Model Y in the United States, where demand has been hit by the removal of key tax credits last year.
Wall Street expects Tesla to deliver about 1.7 million vehicles in 2026, according to Visible Alpha data. That would imply growth from last year’s levels, but analysts remain divided over whether the second-quarter rebound reflects sustainable demand or timing effects after a weak first quarter.
Analysts say sustaining the momentum could be difficult, with third-quarter growth set to face a high bar after a strong performance in the same period last year.
Investors have increasingly turned their attention to Musk’s push into self-driving technology and robotics, seeking clearer evidence that Tesla’s autonomy narrative is shifting from promise to commercial reality.
The core automotive business remains under scrutiny as competitors introduce newer models, often at lower price points. REUTERS Robotaxi expansion accelerates Tesla’s energy generation and storage unit has emerged as a key counterweight to the auto business, helped by demand for grid-scale batteries that support renewable energy, data centers and electricity-network stability.
Tesla has said it expanded its unsupervised robotaxi service in Austin and launched unsupervised rides in Dallas and Houston in April. The company also operates a robotaxi service in Miami and expanded the service to Orlando and Tampa, Florida. Tesla has previously identified Phoenix and Las Vegas among future expansion markets.
The company received approval in April to deploy its advanced driver assistance software – called Full Self-Driving Supervised – in the Netherlands. Some other European countries have also allowed the technology following the Dutch approval.
A key vote to decide on Europe-wide approval for the technology is expected later this year. Tesla is also pushing for approval in China.
Tesla’s shares have fallen more than 15% this year. At about $1.4 trillion, it remains the world’s most valuable automaker by a wide margin, reflecting investor expectations that self-driving software, energy storage, robotaxis and humanoid robots could eventually deliver higher-margin growth than vehicle sales.
Tesla reported Q2 earnings with a massive profit miss and significant margin deterioration. TSLA achieved solid delivery numbers, but only by sacrificing profitability. The high valuation is not justified given the deteriorating financial metrics revealed in this report.
Tesla (TSLA - Free Report) came out with quarterly earnings of $0.33 per share, missing the Zacks Consensus Estimate of $0.5 per share. This compares to earnings of $0.4 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of -34.00%. A quarter ago, it was expected that this electric car maker would post earnings of $0.36 per share when it actually produced earnings of $0.41, delivering a surprise of +13.89%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Tesla, which belongs to the Zacks Automotive - Domestic industry, posted revenues of $28.24 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 9.41%. This compares to year-ago revenues of $22.5 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Tesla shares have lost about 15.7% since the beginning of the year versus the S&P 500's gain of 9.7%.
What's Next for Tesla?While Tesla has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Tesla was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.54 on $27.13 billion in revenues for the coming quarter and $2.16 on $103.29 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Domestic is currently in the top 43% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Rivian Automotive (RIVN - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on July 30.
This a manufacturer of motor vehicles and passenger cars is expected to post quarterly loss of $0.65 per share in its upcoming report, which represents a year-over-year change of +18.8%. The consensus EPS estimate for the quarter has been revised 1.2% higher over the last 30 days to the current level.
Rivian Automotive's revenues are expected to be $1.58 billion, up 21.2% from the year-ago quarter.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of TSLA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Tesla (TSLA - Free Report) reported $28.24 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 25.5%. EPS of $0.33 for the same period compares to $0.40 a year ago.
The reported revenue represents a surprise of +9.41% over the Zacks Consensus Estimate of $25.81 billion. With the consensus EPS estimate being $0.50, the EPS surprise was -34%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Tesla performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total vehicle deliveries: 480,126 versus the six-analyst average estimate of 431,186.Other models deliveries: 12,364 versus the five-analyst average estimate of 9,874.Model 3/Y deliveries: 467,762 compared to the 426,145 average estimate based on five analysts.Storage deployed: 13,500.00 MWh versus the two-analyst average estimate of 13,077.47 MWh.Total Leased Units: 7,580 versus 9,800 estimated by two analysts on average.Revenues- Automotive sales: $20.01 billion versus $18.35 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +26.7% change.Revenues- Energy generation and storage: $3.14 billion versus the eight-analyst average estimate of $3.55 billion. The reported number represents a year-over-year change of +12.6%.Revenues- Services and other: $4.58 billion versus $3.8 billion estimated by eight analysts on average. Compared to the year-ago quarter, this number represents a +50.4% change.Revenues- Automotive regulatory credits: $146 million versus $374.71 million estimated by five analysts on average. Compared to the year-ago quarter, this number represents a -66.7% change.Revenues- Automotive leasing: $364 million versus $313.42 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -16.3% change.Total Automotive Revenue: $20.52 billion compared to the $15.83 billion average estimate based on four analysts. The reported number represents a change of +23.1% year over year.Gross profit- Total Automotive: $3.14 billion compared to the $3.73 billion average estimate based on five analysts.View all Key Company Metrics for Tesla here>>>
Shares of Tesla have returned -0.7% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Robotaxi Mode Engaged: Tesla Starts Monetizing Its Florida FleetTesla NASDAQ: TSLA executives used the company’s second-quarter 2026 earnings webcast to highlight record quarterly deliveries, rising interest in Full Self-Driving, rapid energy storage growth and a major multiyear capital spending cycle tied to autonomy, robotics, semiconductor capacity and manufacturing expansion.
Elon Musk said Tesla had “a great quarter” and achieved record second-quarter deliveries. He said the Model Y continues to set records and described Full Self-Driving, or FSD, as a significant demand driver in markets where it is approved.
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Bank Earnings Are Roaring, But Wall Street Isn't Ready to Celebrate“For a lot of people, they’re actually buying Tesla Full Self-Driving with a car attached, as opposed to a car with FSD,” Musk said, adding that Tesla expects demand to increase as FSD gains approval in additional countries.
Vehicle Demand Rebounded Across Regions Vaibhav Taneja said the second quarter continued a demand recovery that began late in the first quarter. Tesla posted sequential delivery growth of 60% in the Americas, 27% in APAC and 12% in EMEA, he said. Model Y also set records in several markets, including the Netherlands, Australia and New Zealand.
Tesla’s Delivery Surprise Was Big—Earnings Need to Be BiggerTaneja said Tesla exited the quarter with its largest order backlog since 2023 and is focused on increasing production across its factories. He cautioned that production growth will be limited by supply chain constraints, including batteries and electronic components.
FSD was a recurring focus of the call. Taneja said about 55% of North American deliveries had an FSD subscription enabled at the time of delivery in the second quarter. He said FSD attach rates reached nearly 1.5 million paid customers globally, with 55% coming from upfront purchases and 45% from subscriptions. Tesla expects future FSD monetization growth to come primarily from subscriptions, he said, as the company has removed the purchase option in most markets.
Margins Reflect Warranty, Tariff and Pricing Dynamics Automotive gross margin excluding regulatory credits declined sequentially to 16.3% from 19.2%. Taneja said the first quarter had benefited from a $230 million warranty true-down and tariff relief that did not repeat in the second quarter. Adjusting for those first-quarter benefits, automotive gross margin excluding credits would have been approximately flat, he said.
Taneja also said commodity price increases and interest rate changes continued to add costs. Higher interest rates raised the cost of subvention programs, which are recognized upfront as a revenue offset and negatively affected automotive margins.
Tesla’s energy business deployed 13.5 GWh of energy storage in the quarter, up 53% sequentially and the company’s second-largest quarter for the business. However, energy gross margin fell to 20.4% from 39.5%. Taneja attributed the decline to a roughly $240 million warranty true-up tied to vendor cell issues for legacy deployments, the absence of more than $200 million in tariff benefits recognized in the first quarter and lower average selling prices for industrial storage amid increasing competition.
Long term, Taneja said Tesla expects energy gross margins to normalize in the mid- to low-20% range. He described the energy order backlog as robust and said the company is building for existing demand as well as expected future demand from data centers and broader electrification.
Service and other gross margin improved to 14.1% from 9.2%, an all-time high, driven by higher volume and better cost management across used vehicles, Supercharging, service centers and insurance, Taneja said.
Robotaxi Expansion Centers on Safety and Reliability Musk said Tesla is scaling Robotaxi “as fast as humanly possible” while prioritizing safety. He said the company is trying to avoid any harm as it expands the service, noting that any injury involving Robotaxi would draw significant scrutiny from regulators and the public.
Ashok, Tesla’s vice president of AI, said the Robotaxi program has driven more than 380,000 miles of unsupervised operation across six cities in two states with “zero notable incidents.” He said the fleet is already running early versions of Tesla’s V15 FSD software, with about 40% of planned major improvement tracks merged into current builds.
Taneja said Tesla has expanded its Robotaxi fleet to seven U.S. markets and expects the ramp to accelerate through the rest of the year. Musk said the constraint on growth is the “march of nines” of reliability, describing the need for increasingly high safety and reliability levels before broader scaling.
Executives said Tesla plans to keep Robotaxi vertically integrated. Musk said he does not expect demand challenges and believes the service’s economics will make demand exceed Tesla’s ability to serve it.
Optimus, Cybercab and AI Chips Drive Investment Plans Musk said Optimus could be “the biggest product ever,” but emphasized that scaling manufacturing will be difficult because there is no established supply chain for many of the robot’s parts. He said Tesla has in-sourced a significant amount of production and is building an Optimus line in Fremont where Model S and Model X production had previously been located.
Ashok said Optimus training will use data from factory workers, dedicated demonstrations, internet video and eventually robots practicing tasks in an “Optimus Academy.” He said Tesla is applying the same end-to-end AI strategy used in FSD: “pixels in, controls out.”
Musk also discussed Tesla’s planned Terafab initiative and said the company expects to announce a location soon. He said Terafab is necessary to avoid AI chip constraints that would limit Optimus production. Tesla has placed equipment orders for a development fab in Austin intended to combine lithography mask production, logic, memory, packaging and chip testing under one roof.
On Cybercab, executives said the vehicle will use the same V15 models as other Tesla platforms. Musk said Tesla needs to accumulate driving data specific to the Cybercab chassis before putting large numbers on the road. He also said Starlink will be integrated into Cybercab and, in markets where available, Tesla vehicles generally, because Robotaxis need reliable connectivity.
CapEx to Rise as Tesla Pursues Manufacturing Build-Out Taneja said free cash flow was negative in the quarter, largely because capital expenditures more than doubled sequentially. Tesla continues to expect 2026 CapEx of more than $25 billion, with spending set to rise further in the second half of the year.
He said CapEx will grow for the next two or three years as Tesla expands its Robotaxi fleet, Optimus production capacity, semiconductor fab investments, solar manufacturing capacity, AI compute infrastructure and automotive manufacturing. Tesla is also pursuing debt facilities that could provide borrowing capacity of up to $30 billion to accelerate those investments.
Musk said he has asked Tesla’s team to spend on CapEx “as fast as we can without it being too wasteful,” balancing capital efficiency against speed. He described the current effort as one of the fastest industrial scale-ups in modern U.S. history.
Net income in the quarter was positively affected by a $1 billion mark-to-market gain on Tesla’s SpaceX holdings, offset by about $300 million in foreign exchange losses and roughly $100 million in Bitcoin losses, Taneja said.
About Tesla (NASDAQ:TSLA)Tesla, Inc NASDAQ: TSLA is an American company that designs, manufactures and sells electric vehicles, energy generation and energy storage products. Founded in 2003 by Martin Eberhard and Marc Tarpenning, Tesla grew into a vertically integrated mobility and clean‑energy company with Elon Musk serving as its chief executive officer. The company's stated mission is to accelerate the world's transition to sustainable energy, reflected in its combined focus on electric drivetrains, battery technology, renewable energy products and software.
Tesla's automotive business includes a lineup of battery‑electric vehicles and related services.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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ToplineElon Musk on Wednesday deflected questions about a direct merger between his SpaceX and Tesla during the automaker’s earnings call, following months of speculation about a future tie-up of his two firms as the world’s richest person said there is increasingly more “overlap” between them.
Musk told investors there is “more and more overlap” between his two companies.
Copyright 2019 The Associated Press. All rights reserved.
Key FactsMusk, in response to a question from Wells Fargo analyst Colin Langan about a possible merger between Tesla and SpaceX, said: “We can’t talk about, you know, combining companies and that kind of thing on an earnings call—it has got to be done with the appropriate process.”
There is “more and more overlap” between Tesla and SpaceX, Musk said, referencing Starlink’s integration into Cybertrucks—and later inclusion in all Tesla vehicles, according to Musk—and TeraFab, a proposed AI chip manufacturing venture between Tesla, SpaceX and xAI, which is now a SpaceX subsidiary.
Musk said xAI, now known as SpaceXAI, will develop an AI model to serve as a “manager” for Optimus, Tesla’s robots that Musk has claimed could be the “biggest product ever.”
In response to Langan’s question, Tesla’s general counsel said the automaker will “continue to benefit from our relationship with SpaceX,” citing “numerous beneficial transactions” and investments between them.
tesla misses on earnings, despite revenue beatTesla reported second-quarter revenue of $28.2 billion, beating consensus economist projections of $27.2 billion, according to FactSet. The firm posted earnings of 33 cents per share, however, which fell well below estimates of 55 cents. Tesla also reported its first quarter of negative free cash flow in more than two years, running just over $1 billion in the red, as chief financial officer Vaibhav Taneja reiterated Tesla planned to spend more than $25 billion this year, noting that figure will likely rise in the coming years.
key backgroundSome analysts have suggested that Tesla and SpaceX could merge, as Musk has worked to fold his companies into one another. SpaceX president Gwynne Shotwell told CNBC a deal combining the rocket maker with Tesla “might make Elon’s life a little easier,” arguing there was “no question that there are synergies between Tesla and SpaceX in our futures.” Musk reportedly discussed the possibility of combining the two companies, and Tesla employees have purportedly said many workers at the company are expecting a transaction to take place. Former Wedbush Securities analyst Dan Ives said ahead of SpaceX’s initial public offering last month his firm had placed odds of 80% or higher for Tesla and SpaceX merging by 2027, writing in a separate note the “groundwork is already in place for both operations to become one organization.”
further readingForbesCould Musk Merge SpaceX And Tesla? Here’s What Analysts—And Betting Markets—SayBy Ty Roush
Uber Technologies (UBER - Free Report) ended the recent trading session at $70.33, demonstrating a -1.71% change from the preceding day's closing price. This move lagged the S&P 500's daily loss of 0.14%. At the same time, the Dow lost 0.01%, and the tech-heavy Nasdaq lost 0.57%.
Coming into today, shares of the ride-hailing company had gained 2.7% in the past month. In that same time, the Computer and Technology sector lost 4.82%, while the S&P 500 gained 0.25%.
The investment community will be closely monitoring the performance of Uber Technologies in its forthcoming earnings report. The company is scheduled to release its earnings on August 5, 2026. The company is expected to report EPS of $0.83, up 31.75% from the prior-year quarter. Alongside, our most recent consensus estimate is anticipating revenue of $14.2 billion, indicating a 12.25% upward movement from the same quarter last year.
Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of $2.98 per share and revenue of $57.89 billion. These totals would mark changes of -43.77% and +11.28%, respectively, from last year.
Any recent changes to analyst estimates for Uber Technologies should also be noted by investors. Recent revisions tend to reflect the latest near-term business trends. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed a 1.2% increase. Uber Technologies is currently sporting a Zacks Rank of #3 (Hold).
Valuation is also important, so investors should note that Uber Technologies has a Forward P/E ratio of 23.98 right now. This signifies a premium in comparison to the average Forward P/E of 17.2 for its industry.
It's also important to note that UBER currently trades at a PEG ratio of 6.01. Comparable to the widely accepted P/E ratio, the PEG ratio also accounts for the company's projected earnings growth. The Internet - Services industry currently had an average PEG ratio of 1.84 as of yesterday's close.
The Internet - Services industry is part of the Computer and Technology sector. This group has a Zacks Industry Rank of 105, putting it in the top 43% 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
ToplineAlphabet on Wednesday reported its 12th-straight quarter of double-digit revenue growth, boosted by another surge in Google Cloud sales as nearly 1 billion people now use the firm’s AI models.
The Google parent reported its 12th-straight quarter of double-digit revenue growth.
Gado via Getty Images
Key FactsAlphabet reported second-quarter revenue of $119.8 billion, an annual increase of 24%, surpassing Wall Street’s projections of $117 billion, according to FactSet.
The Google parent posted $9.11 earnings per share in what it called a year-over-year surge of 295%—the figure marked a roughly 291% annual increase and smashed consensus analyst estimates of $2.88 earnings per share.
Google Cloud revenue surged 82% to $24.8 billion, above estimates of $22.4 billion, as operating income from the segment more than tripled to $8.8 billion, driven by demand for AI products and infrastructure, Alphabet reported.
Alphabet CEO Sundar Pichai said in a statement the company’s Gemini has 950 million monthly active users, up from the 750 million it reported for Q4 2025.
Shares of Alphabet fell around 3% following its earnings report, but Deepwater Asset Management analyst Gene Munster suggested shares could rise on Thursday, citing the jump in Google Cloud revenue as the “most important number and it was a massive beat.”
what to watch forHow Alphabet’s spending compares to its mega-cap competitors. The company reported $44.9 billion in capital expenditures through its latest quarter, doubling its figure last year. Earlier estimates from Amazon, Alphabet, Microsoft and Meta indicated the firms would spend up to $750 billion this year as each worked to match growing demand for AI products.
big number$97.8 billion. That’s how much Alphabet earned from “other income,” up from just $2.2 billion last year. Alphabet said the bump largely came from its equity securities, which include investments in Anthropic and SpaceX.
key backgroundAlphabet’s three years of quarterly revenue growth reflect the tech giant’s aggressive pivot toward AI. The Google parent has committed hundreds of billions of dollars to build data centers and other AI projects, and the firm reportedly has plans to develop a new in-house AI chip that Google engineers expect to be up to 10 times more energy-efficient than its predecessor. Pichai said Alphabet’s AI investments are “redefining what’s possible across every part of our business,” noting its “full-stack approach to AI delivering real, measurable value” to consumers.
further readingForbesAlphabet Rally Boosts Google Cofounder Fortunes By $15 Billion—Here’s Why Shares Are UpBy Ty Roush
Falling 0.57% to 25,691, the Nasdaq Composite (^IXIC -0.57%) led the market lower as rising oil prices pressured growth stocks, while the S&P 500 (^GSPC -0.14%) slipped 0.13% to 7,499 and the Dow Jones Industrial Average (^DJI -0.01%) finished nearly flat, down 0.01% to 52,219.
Gold prices gained 1.49% to $4,137.10 as of U.S. market close and the 10-Year Treasury yield rose 0.03% to 4.63%, as the Utilities sector climbed while Communication Services and Healthcare shares finished lower.
Today's biggest movesSuper Micro Computer rocketed 26% on a record backlog, while AT&T smashed EPS expectations, sending its stock 4% higher. Elsewhere, Rocket Lab stock opened higher, but sold off to end the day largely flat after announcing a $266 million contract with the U.S. government for 12 suborbital launches.
On the negative side, Reddit slipped 8% after a report suggested the company may limit Alphabet’s access to its massive trove of content for AI training. However, this is likely just posturing in hopes of negotiating a better licensing deal with the Magnificent Seven juggernaut.
What this means for investorsNow, the market’s attention is largely on Alphabet and Tesla after hours, as the two stocks just reported their second-quarter earnings. As of 5:45 p.m. ET, Alphabet stock was down 4%, and Tesla had dipped 5%.
While Alphabet delivered sales growth of 24%, headlined by its cloud department’s revenue soaring 81%, free cash flow turned negative as operating cash flow was outweighed by $45 billion in capital expenditures during the quarter.
As for Tesla, revenue rose 26%, but adjusted EPS was well below Wall Street expectations, pressuring shares. Tesla will likely remain volatile as it transitions production from mostly EVs to Cybercabs, Megapack 3, Tesla Semi, Optimus robots, and other new verticals.
Currently, Nasdaq futures are down 1%.
Josh Kohn-Lindquist has positions in Alphabet, Rocket Lab, and Tesla. The Motley Fool has positions in and recommends Alphabet, Reddit, Rocket Lab, and Tesla. The Motley Fool has a disclosure policy.
Alphabet investors have very publicly worried that the company’s massive AI spending isn’t worth the money. With the company’s latest earnings report, those investors should be able to relax a little.
The takeaway: Google’s cloud business — driven largely by enterprise AI adoption — is booming. The search giant saw Google Cloud revenue spike 82% from where it was this time last year, climbing to $24.8 billion. That’s well above last quarter’s generous year-over-year growth, which showed a revenue jump of 63% to $20 billion — and it handily beats what Wall Street analysts expected for this quarter’s growth (the expectation was $22.46 billion).
Those cloud gains were driven largely by enterprise AI solutions and enterprise AI infrastructure adoption, the company said, while also noting that its backlog of cloud contracting work — that is, work that it hasn’t yet converted into revenue — had climbed to $514 billion.
The company’s profit hit $112.1 billion, which is a massive jump from this time last year, when the company reported $28.1 billion in profit, the company’s earnings report shows. Meanwhile, Alphabet’s overall revenue grew 24% year-over-year during the past quarter to $119.8 billion. The company also saw Google Services revenue jump 15% to $94.5 billion.
“Our AI investments are redefining what’s possible across every part of our business,” said Google CEO Sundar Pichai during Wednesday’s earnings call. “We have exciting momentum across the board.”
More people are also adopting Gemini, Google’s AI chatbot, as the app currently enjoys 950 million monthly active users, the company said. In Q4 of 2025, Google reported that the app had 750 million users.
It’s worth noting that spiking revenue isn’t unusual for Google. This marks the company’s 12th consecutive quarter of double-digit revenue growth. But even by that standard, this quarter represents a particularly bountiful period for the tech giant.
Alphabet’s spending is still hefty, with its capital expenditures — the money it spends building data centers, buying chips, and expanding infrastructure — estimated to be between $180 billion and $190 billion for the year — a fact not lost on analysts during Wednesday’s earnings call. Several pressed Pichai on when, and how much, those investments will pay off.
“I think our compute capacity investments in ’27,” he said. “We are seeing strong demand indicators, including long-term deals,” he continued. “I think, if anything, the dynamics look healthier than where we were about a year ago, so that’s what gives us the confidence to undertake those investments,” he said.
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Lucas is a senior writer at TechCrunch, where he covers artificial intelligence, consumer tech, and startups. He previously covered AI and cybersecurity at Gizmodo. You can contact Lucas by emailing [email protected].
Alphabet Is Planning a New AI Chip. Here's Why It Matters Ahead of EarningsAlphabet NASDAQ: GOOG executives said the company’s second-quarter 2026 results were driven by broad demand for artificial intelligence across Search, YouTube and Google Cloud, while also signaling that heavy infrastructure spending will continue as capacity remains constrained.
Chief Executive Sundar Pichai said Alphabet revenue rose 24% year-over-year, citing “exciting momentum” across the company’s core businesses. Search and other revenue grew 17%, YouTube advertising revenue increased 13%, and Google Cloud revenue rose 82%, he said. Cloud backlog reached $514 billion.
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Oracle Is One Step From Junk—Can It Afford the AI Boom?“Our AI investments are redefining what’s possible across every part of our business,” Pichai said.
AI Adoption Drives Product Momentum Pichai said Alphabet is seeing strong usage growth for its Gemini model family, including newly announced Gemini 3.6 Flash and 3.5 Flash-Lite models. He described the Flash series as a “workhorse” product because of its balance of performance and cost. Alphabet also launched Gemini 3.5 Flash Cyber, which Pichai said can be paired with the CodeMender agent to identify and fix vulnerabilities.
Bank Earnings Are Roaring, But Wall Street Isn't Ready to CelebratePichai said more than 9 million developers are building each month with Alphabet’s models across APIs and developer products. The company’s model APIs are processing about 22 billion tokens per minute, up from 16 billion in the prior quarter.
The Gemini app reached 950 million monthly active users, with daily active users tripling over the past year, Pichai said. He also said that since the company launched Omni at Google I/O in May, there has been a 40% increase in daily active users creating videos on the Gemini app.
In Search, Pichai said Alphabet brought AI Overviews and AI Mode together into one “seamless Search experience.” AI Mode has surpassed 1 billion monthly active users since expanding globally last October, he said. Pichai added that AI features in Search are sending “billions of clicks to websites every week.”
Search and YouTube Advertising Grow Philipp Schindler, Alphabet’s chief business officer, said Google Services revenue was $95 billion for the quarter, up 15% year-over-year and primarily driven by Search. Search and Other revenue reached more than $63 billion, with retail and finance making the largest contributions. YouTube advertising revenue grew 13%, driven by direct response and brand advertising, while Network advertising revenue declined 1%.
Schindler said Alphabet is using Gemini across its advertising infrastructure to improve ad quality, advertiser tools and AI user experiences. He said Gemini has helped improve query understanding, particularly for longer searches that were previously harder to monetize. In shopping ads, Schindler said the company drove a 20% improvement in showing highly relevant ads.
He also highlighted AI Max, which is now out of beta and has been adopted by half a million advertisers. Advertisers using AI-powered campaigns such as AI Max or Performance Max see an average of 15% more conversions or value on Search at a similar return on ad spend, Schindler said.
YouTube also benefited from the FIFA World Cup 2026. Pichai said more than 1.7 billion unique viewers globally watched World Cup-related videos on YouTube. Schindler said more than 550 million watched those videos on televisions, making the tournament the most viewed World Cup in YouTube history.
Google Cloud Revenue Surges 82% Chief Financial Officer Anat Ashkenazi said Google Cloud revenue increased 82% to $24.8 billion, driven primarily by Google Cloud Platform, which grew faster than Cloud overall. She said core GCP, AI solutions and AI infrastructure were all important contributors. Alphabet also began recognizing revenue from TPU system sales delivered to customer data centers for the first time in the quarter.
Cloud operating income was $8.8 billion, more than tripling from the year-earlier period, while operating margin rose to 35.6% from 20.7%. Ashkenazi said Cloud backlog increased by more than $50 billion sequentially to $514 billion, driven by demand for enterprise AI offerings. Alphabet expects to recognize just over 50% of that backlog as revenue over the next 24 months.
Pichai said Gemini Enterprise has been adopted by nearly 90% of Fortune 100 companies. He also said nearly 500 Cloud customers each processed more than 1 trillion tokens in the last year, and more than 2,000 enterprises consumed more than 100 billion tokens over the same period.
Security was another focus area. Pichai said 90% of Fortune 100 companies are Google Cloud security users, and nearly 90% of Wiz customers are using AI-powered security features. Alphabet reported a more than 45% quarter-over-quarter increase in AI workloads scanned and protected by its security platform.
CapEx Guidance Raised as Capacity Remains Tight Ashkenazi said consolidated revenue was $119.8 billion, up 24%, or 23% in constant currency. Operating income increased 30% to $40.8 billion, and operating margin was 34%. Alphabet generated $39.1 billion in operating cash flow during the quarter, but free cash flow was negative $5.9 billion due to capital expenditures.
Capital expenditures totaled $44.9 billion in the second quarter, with the “vast majority” going to technical infrastructure for AI. About 60% of technical infrastructure investment was in servers, while 40% was in data centers and networking equipment.
Ashkenazi raised Alphabet’s full-year 2026 capital expenditure guidance to a range of $195 billion to $205 billion, up from a previous estimate of $180 billion to $190 billion. She said the increase reflects accelerated capacity delivery to meet demand. Alphabet also expects capital expenditures to increase significantly in 2027.
“We’re still in a supply-constrained environment,” Ashkenazi said during the question-and-answer session, adding that Alphabet will continue investing as long as it sees attractive returns.
Ashkenazi also said Alphabet plans to expand its use of third-party capacity in the third quarter as a bridge while it builds more internal capacity. She said that strategy should help Alphabet continue growing its customer base, but it will create modest near-term margin pressure.
Executives Address Model Competition and Long-Term Bets Asked about returns on generative AI investments, Pichai said Alphabet is in the “very early innings” of a secular shift across consumer and enterprise markets. He said the company has become “more bullish” on the opportunities over the past year.
On model competition, Pichai said the frontier remains dynamic, but Alphabet is committed to competing at that level. He said the company is training Gemini 4 and is aiming to increase the pace of model releases, potentially moving toward a monthly cadence.
Executives also discussed Alphabet’s other bets. Pichai said Waymo introduced its newest vehicle, Oasis, to public riders, powered by the sixth-generation Waymo Driver. Wing has completed more than 1 million home deliveries and continues to grow through partnerships with Walmart, DoorDash and Papa John’s. In health and drug discovery, Isomorphic Labs raised more than $2 billion to support its AI drug design engine and drug candidate pipeline.
Ashkenazi said the board declared a quarterly cash dividend of $0.22 per share, payable in September. Alphabet ended the quarter with $242.5 billion in cash and marketable securities, including $87.1 billion of marketable equity securities, and $98.2 billion in long-term debt.
About Alphabet (NASDAQ:GOOG)Alphabet Inc NASDAQ: GOOG is a multinational technology holding company headquartered in Mountain View, California. Formed in 2015 through a corporate restructuring of Google, Alphabet serves as the parent to Google LLC and a portfolio of businesses collectively known as "Other Bets." Google was originally founded in 1998 by Larry Page and Sergey Brin; Alphabet is led by CEO Sundar Pichai, who oversees Google and the broader company while the founders remain prominent shareholders and influential figures in the company's history.
Alphabet's core business centers on internet search and advertising, with Google Search and the company's ad platforms (including Google Ads and AdSense) generating the majority of revenue by connecting advertisers with consumers worldwide.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Alphabet (GOOGL - Free Report) came out with quarterly earnings of $9.11 per share, beating the Zacks Consensus Estimate of $2.88 per share. This compares to earnings of $2.31 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +216.32%. A quarter ago, it was expected that this internet search leader would post earnings of $2.64 per share when it actually produced earnings of $5.11, delivering a surprise of +93.56%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Alphabet, which belongs to the Zacks Internet - Services industry, posted revenues of $103.62 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.31%. This compares to year-ago revenues of $81.72 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Alphabet shares have added about 10.9% since the beginning of the year versus the S&P 500's gain of 9.7%.
What's Next for Alphabet?While Alphabet has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Alphabet was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.04 on $108.03 billion in revenues for the coming quarter and $14.34 on $423.86 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Services is currently in the top 43% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
One other stock from the same industry, Lyft (LYFT - Free Report) , is yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This ride-hailing company is expected to post quarterly earnings of $0.39 per share in its upcoming report, which represents a year-over-year change of +56%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Lyft's revenues are expected to be $1.81 billion, up 13.7% from the year-ago quarter.
Alphabet Inc. (GOOG - Free Report) came out with quarterly earnings of $9.11 per share, beating the Zacks Consensus Estimate of $2.88 per share. This compares to earnings of $2.31 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +216.32%. A quarter ago, it was expected that this company would post earnings of $2.64 per share when it actually produced earnings of $5.11, delivering a surprise of +93.56%.
Over the last four quarters, the company has surpassed consensus EPS estimates four times.
Alphabet, which belongs to the Zacks Internet - Services industry, posted revenues of $103.62 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 2.31%. This compares to year-ago revenues of $81.72 billion. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Alphabet shares have added about 10.3% since the beginning of the year versus the S&P 500's gain of 9.7%.
What's Next for Alphabet?While Alphabet has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Alphabet was favorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #1 (Strong Buy) for the stock. So, the shares are expected to outperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.04 on $107.98 billion in revenues for the coming quarter and $14.34 on $423.73 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Services is currently in the top 43% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Dropbox (DBX - Free Report) , has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This online file-sharing company is expected to post quarterly earnings of $0.74 per share in its upcoming report, which represents a year-over-year change of +4.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
Dropbox's revenues are expected to be $625.6 million, down 0% from the year-ago quarter.
SummaryAlphabet Inc. posted a strong Q2, with revenue up 24% year over year. The standout was Google Cloud, where revenue surged 82% and operating margins expanded sharply.The main debate is not demand but spending. Q2 CapEx rose to $44.9B, pushing quarterly free cash flow into negative territory, yet that spending is supported by a $514B Cloud.Cloud is no longer just a growth story. It is becoming a major profit engine for Alphabet, with operating margins rising from 20.7% to 35.6% and growing adoption of the.I maintain a Strong Buy rating on GOOG stock. Near-term Free Cash Flow (FCF) will likely remain under pressure, but cloud growth, margin expansion, and AI monetization support a compelling long-term opportunity. Nicolae Popescu/iStock via Getty Images
Executive Summary I know you're all here trying to figure out how Alphabet Inc.'s (GOOG) (GOOGL) highly anticipated quarterly results really went. So let’s cut to the chase; we’ve got plenty of other
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of GOOGL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Editor’s Note: The transcripts have been removed and were published in error.
Alphabet (NASDAQ:GOOGL) released second-quarter financial results and hosted an earnings call on Wednesday. Read the complete transcript below.
Benzinga APIs provide real-time access to earnings call transcripts and financial data. Visit https://www.benzinga.com/apis/ to learn more.
The full earnings call is available at https://abc.xyz/investor/events/event-details/2026/2026-Q2-Earnings-Call-2026-GgTAq7Is0z/default.aspx
SummaryAlphabet Inc reported its financial performance for the second quarter of 2026, highlighting strong revenue growth driven by its core services and new initiatives.
The company emphasized its strategic focus on AI technology, particularly through the development and implementation of AI-driven solutions like Gemini, which aims to solve complex problems across various sectors.
YouTube TV was highlighted as a key product with expanding service plans, reflecting the company’s commitment to diversifying its revenue streams beyond traditional advertising.
Alphabet Inc announced continued investment in its cloud services, aiming to leverage AI capabilities to enhance its offerings and maintain competitive advantage.
Management expressed optimism about the future, focusing on the potential of AI to drive growth and innovation, while also addressing the company’s mission to tackle solvable diseases with new technology.
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For the quarter ended June 2026, Alphabet (GOOGL - Free Report) reported revenue of $103.62 billion, up 26.8% over the same period last year. EPS came in at $9.11, compared to $2.31 in the year-ago quarter.
The reported revenue represents a surprise of +2.31% over the Zacks Consensus Estimate of $101.28 billion. With the consensus EPS estimate being $2.88, the EPS surprise was +216.32%.
While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Alphabet performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Total TAC (traffic acquisition costs): $16.18 billion versus $16.22 billion estimated by nine analysts on average.Headcount (Number of employees): 198,933 versus the three-analyst average estimate of 196,768.Revenues- EMEA: $32.5 billion versus the two-analyst average estimate of $33.39 billion. The reported number represents a year-over-year change of +15%.Revenues- United States: $60.85 billion versus the two-analyst average estimate of $56.66 billion. The reported number represents a year-over-year change of +32.1%.Revenues- Other Americas (Canada and Latin America): $7.03 billion versus $6.93 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +22.5% change.Revenues- APAC: $19.32 billion compared to the $20.54 billion average estimate based on two analysts. The reported number represents a change of +17.2% year over year.Revenues- YouTube ads: $11.06 billion compared to the $10.76 billion average estimate based on eight analysts. The reported number represents a change of +12.9% year over year.Revenues- Google Cloud: $24.77 billion versus the eight-analyst average estimate of $22.77 billion. The reported number represents a year-over-year change of +81.8%.Revenues- Google advertising: $81.63 billion compared to the $81.62 billion average estimate based on eight analysts. The reported number represents a change of +14.4% year over year.Revenues- Google Search & other: $63.27 billion compared to the $63.52 billion average estimate based on eight analysts. The reported number represents a change of +16.8% year over year.Revenues- Google Network: $7.3 billion compared to the $7.08 billion average estimate based on eight analysts. The reported number represents a change of -0.7% year over year.Revenues- Google subscriptions, platforms, and devices: $12.91 billion compared to the $12.85 billion average estimate based on seven analysts. The reported number represents a change of +15.3% year over year.View all Key Company Metrics for Alphabet here>>>
Shares of Alphabet have returned +0.3% over the past month versus the Zacks S&P 500 composite's +0.3% change. The stock currently has a Zacks Rank #1 (Strong Buy), indicating that it could outperform the broader market in the near term.
Google CEO Sundar Pichai. Bloomberg/Getty Images Imagine making nearly $100 billion extra and dedicating exactly one vague sentence to it. That's just what Google parent Alphabet did in its second quarter earnings report.
The tech giant reported that its "other income" totaled $98 billion in the second quarter, noting it came from unrealized gains on its investments.
Analysts didn't ask Alphabet executives about the gain on its earnings call. Instead, they focused on its rising capital expenditures and position in the AI race. The tech giant's stock closed down about 1.24%.
It's not the first time Alphabet has done this. In April 2025, the company disclosed a similar $8 billion paper gain. Google has no obligation to disclose exactly where those gains come from, and it doesn't.
The gains are almost certainly related to very savvy investments the company has made in companies like SpaceX, Anthropic, and Databricks.
Google was an early SpaceX investor, buying about 7% of the company in 2015. SpaceX also uses Google Cloud for its Starlink service. SpaceX is currently worth about $1.5 trillion dollars since its IPO last month. Google invested in SpaceX when it was worth only about $12 billion — that's a 133x return.
Google is also heavily invested in Anthropic, owning about a 14% stake in the company as of last March, according to filings seen by the New York Times. The AI lab was valued at almost $1 trillion in a massive $65 billion funding round in May. Some investors think it's already worth $1.2 trillion.
Additionally, Google is an investor in Databricks, which was valued at $188 billion in a funding round earlier this month.
Google, SpaceX, Anthropic, and Databricks didn't respond to requests for comment.
Google's investing chops are certainly impressive. But investors are more concerned about Google's own prospects.
The tech giant hiked its capital expenditures to a maximum of $205 billion this year as it races to compete on AI. While Google has strong advantages in distribution and chipmaking, its efforts to build a leading AI model haven't paid off.
It keeps delaying its next big AI chatbot, which some rivals are mocking online.
Still, many analysts remain bullish on Google's fundamentals. Its revenue jumped by almost 25% compared to last year on the back of strong ads and cloud sales, which are also being boosted by AI.
"Another impressive quarter for Google," said Emarketer principal analyst Nate Elliott.
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Charles Rollet You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
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.
Alphabet Inc. delivered a solid Q2, with a 24% revenue growth and a 30% operating income growth, driven by strong operating leverage and strong operational metrics. AI and Search remain the key growth engines, with search growing 17%; but the highlight is the Cloud division (delivered a ~80% growth). The heavy CapEx pushed free cash flow to negative $5 billion, which may concern some investors but reflects investments to meet the booming AI demand.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of BRK.B, GOOG either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
In the latest trading session, Amazon (AMZN - Free Report) closed at $244.85, marking a -1.09% move from the previous day. The stock trailed the S&P 500, which registered a daily loss of 0.14%. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq lost 0.57%.
The online retailer's shares have seen an increase of 5.74% over the last month, surpassing the Retail-Wholesale sector's gain of 0.45% and the S&P 500's gain of 0.25%.
The investment community will be closely monitoring the performance of Amazon in its forthcoming earnings report. The company is scheduled to release its earnings on July 30, 2026. In that report, analysts expect Amazon to post earnings of $1.82 per share. This would mark year-over-year growth of 8.33%. Meanwhile, the latest consensus estimate predicts the revenue to be $196.85 billion, indicating a 17.38% increase compared to the same quarter of the previous year.
In terms of the entire fiscal year, the Zacks Consensus Estimates predict earnings of $8.93 per share and a revenue of $826.74 billion, indicating changes of +24.55% and +15.32%, respectively, from the former year.
Investors should also take note of any recent adjustments to analyst estimates for Amazon. These revisions help to show the ever-changing nature of near-term business trends. Hence, positive alterations in estimates signify analyst optimism regarding the business and profitability.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional 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. The Zacks Consensus EPS estimate has moved 0.49% higher within the past month. At present, Amazon boasts a Zacks Rank of #2 (Buy).
In the context of valuation, Amazon is at present trading with a Forward P/E ratio of 27.72. For comparison, its industry has an average Forward P/E of 17.14, which means Amazon is trading at a premium to the group.
Meanwhile, AMZN's PEG ratio is currently 1.6. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. As of the close of trade yesterday, the Internet - Commerce industry held an average PEG ratio of 1.12.
The Internet - Commerce industry is part of the Retail-Wholesale sector. This industry currently has a Zacks Industry Rank of 161, which puts it in the bottom 35% 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.
Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.
Boeing (BA - Free Report) closed the most recent trading day at $208.65, moving +1.88% from the previous trading session. The stock exceeded the S&P 500, which registered a loss of 0.14% for the day. Elsewhere, the Dow lost 0.01%, while the tech-heavy Nasdaq lost 0.57%.
Heading into today, shares of the airplane builder had lost 5.5% over the past month, outpacing the Aerospace sector's loss of 5.8% and lagging the S&P 500's gain of 0.25%.
The investment community will be paying close attention to the earnings performance of Boeing in its upcoming release. The company is slated to reveal its earnings on July 28, 2026. On that day, Boeing is projected to report earnings of -$0.34 per share, which would represent year-over-year growth of 72.58%. Meanwhile, our latest consensus estimate is calling for revenue of $24.05 billion, up 5.73% from the prior-year quarter.
For the full year, the Zacks Consensus Estimates project earnings of -$0.33 per share and a revenue of $96.84 billion, demonstrating changes of +96.9% and +8.25%, respectively, from the preceding year.
Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Boeing. These revisions typically reflect the latest short-term business trends, which can change frequently. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To take advantage of this, we've established the Zacks Rank, an exclusive model that considers these estimated changes and delivers an operational rating system.
The Zacks Rank system, spanning from #1 (Strong Buy) to #5 (Strong Sell), boasts an impressive track record of outperformance, audited externally, with #1 ranked stocks yielding an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 113.63% lower. At present, Boeing boasts a Zacks Rank of #3 (Hold).
The Aerospace - Defense industry is part of the Aerospace sector. This industry currently has a Zacks Industry Rank of 98, which puts it in the top 40% of all 250+ industries.
The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in 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.
SummaryCompaniesFrom January, key retailers will stop selling Nike clothing and footwear online in ChinaNike will sell through Nike-branded digital storefronts on Tmall, JD.com and DouyinDomestic rivals and newer premium entrants have intensified pressure amid weaker discretionary spendingNike's China turnaround may take years as reduced distributor sales hit volume firstSHANGHAI, July 23 (Reuters) - After eight successive quarters of falling sales in China, Nike (NKE.N), opens new tab is pulling online sales rights from some of its biggest retail partners in a high-stakes bet that tighter control over pricing and distribution can revive its fortunes.
Analysts largely agree that measures announced this week by Nike's Greater China general manager Cathy Sparks will help the sportswear giant address rampant discounting and brand erosion in its third-largest market.
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Less clear is whether parallel efforts to localise product development will have enough impact to solve what is arguably the company's biggest challenge in China: convincing consumers that they want what Nike is selling.
Sparks, a 25-year Nike veteran who took charge of the China business earlier this year, said on Tuesday that from January, key sportswear retailers in China will no longer sell Nike clothing and footwear online. Products will almost exclusively be available via Nike-branded digital storefronts.
"This is the right thing to do, especially at this moment," said Wei Kan, founder of sports and lifestyle brand strategy consultancy Conduit Asia and a former brand director at Nike Greater China. "Otherwise, the consumer will always expect the discounted Nike product."
Still, any payoff will likely take three years to materialize as the company faces macroeconomic and self-inflicted pressures, said Mari Shor, senior equities analyst at Columbia Threadneedle Investments, which holds Nike stock.
Nike expects progress in China to come in stages, a spokesperson said, adding that the company has already seen an uptick in full-price online sales over the last two quarters after taking steps to limit discounting.
CEO Elliott Hill, nearly two years into his tenure at the helm of the company, has pushed to refocus on sports, rebuild wholesale relationships in North America and introduce new products. But shares have fallen about 34% so far this year as investors grow impatient with his progress.
'TOTAL CHAOS' IN ONLINE PRICINGNike's downturn underscores how China's sportswear market has become less forgiving. Domestic sportswear groups Anta (2020.HK), opens new tab and Li Ning (2331.HK), opens new tab have capitalised with nimble supply chains, aggressive expansion and products tailored to local consumers, while fast-growing international challengers such as Deckers-owned (DECK.N), opens new tab Hoka and On have increased pressure at the premium end of the market.
Against that backdrop, Nike's efforts to restore growth have been hampered by discounting, excess inventory and an increasingly difficult battle to justify its premium pricing.
The high volume of Nike products sold through a range of company-owned and wholesale channels in recent years has created "total chaos" in online pricing, said Ben Cavender, managing director at Shanghai-based China Market Research Group. The confusion has made it difficult for Nike to restore the "coolness" of the brand, he said.
Brian Fenn, senior director of product for Nike Greater China from 2018 to 2022, said regaining control over "constant discounting and grey-market inventory" from third-party distributors has long been a goal for the company. But new restrictions will come at a cost.
"Cutting distributors like Topsports (6110.HK), opens new tab and Pou Sheng (3813.HK), opens new tab will pressure sales volume before it helps," he said. "They move a lot of product."
Nike reported $5.85 billion in total China sales in fiscal year 2026.
LOCAL CONTROL TESTSparks also said Nike has appointed its first Greater China Vice President of Local Product Creation, acknowledging criticism that the company has fallen behind rivals in developing products that resonate with Chinese consumers. To start, the sportswear giant is designing two lifestyle collections for the holiday season, she said.
But the success of those efforts will depend on how much autonomy the local team gets to operate at the speed and scale needed to compete with fast-moving rivals.
"The times we won were when the local team could move fast," Fenn said. "Anta and Li-Ning win as much on speed and reading the culture natively as they do on design."
Chinese shoppers are used to hunting for discounts on popular e-commerce platforms like Tmall and Douyin, said Ivan Su, equity analyst at Morningstar. Nike's competitors — domestic companies as well as foreign brands with localised strategies — offer appealing products at lower prices.
"Consolidating into official storefronts only works if the product justifies the price," he said of Nike's new online restrictions.
Reporting by Casey Hall in Shanghai and Danielle Kaye in New York; Editing by Nia Williams
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Casey is the Shanghai bureau chief and a senior correspondent covering companies in China, reporting on the biggest issues facing local and global businesses operating in the world's second largest economy. The Australian-born journalist has been based in Shanghai since 2007.
Canopy Growth Corporation (CGC - Free Report) closed at $0.91 in the latest trading session, marking a -2.67% move from the prior day. The stock fell short of the S&P 500, which registered a loss of 0.14% for the day. Meanwhile, the Dow lost 0.01%, and the Nasdaq, a tech-heavy index, lost 0.57%.
The stock of company has fallen by 1.16% in the past month, lagging the Medical sector's gain of 5.8% and the S&P 500's gain of 0.25%.
Investors will be eagerly watching for the performance of Canopy Growth Corporation in its upcoming earnings disclosure. The company is expected to report EPS of -$0.04, up 71.43% from the prior-year quarter. Meanwhile, the latest consensus estimate predicts the revenue to be $58.52 million, indicating a 12.25% increase compared to the same quarter of the previous year.
For the full year, the Zacks Consensus Estimates project earnings of -$0.11 per share and a revenue of $243.57 million, demonstrating changes of +75.56% and +18.26%, respectively, from the preceding year.
Investors might also notice recent changes to analyst estimates for Canopy Growth Corporation. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate remained stagnant within the past month. Canopy Growth Corporation is currently sporting a Zacks Rank of #3 (Hold).
The Medical - Products industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 168, placing it within the bottom 32% of over 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.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
An NVIDIA logo and a computer motherboard appear in this illustration taken August 25, 2025. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab
SAN FRANCISCO, July 22 (Reuters) - Nvidia (NVDA.O), opens new tab and the Naval Postgraduate School (NPS) on Wednesday said that the AI chip leader has donated a supercomputer with its latest chips to a nonprofit linked to the institution.
The NPS is operated by the U.S. Navy and offers masters and doctoral degrees in fields such as computer science and aerospace engineering, among others, with an emphasis on their applications in warfare. Nvidia donated a system based on its GB300 "Grace Blackwell" servers, its most advanced AI computers, to the NPS Foundation, a nonprofit connected to the school.
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Nvidia and the NPS did not disclose the size of the system, but confirmed it has been installed at the NPS campus in Monterey, California, where Adm. Samuel J. Paparo, commander of U.S. Pacific Command, and Nvidia CEO Jensen Huang planned to hold an event to announce the system.
While Nvidia's Blackwell chips are planned for use in U.S. government supercomputers built by the U.S. Department of Energy, the donation on Wednesday is the first direct use of Nvidia's most advanced servers by the U.S. military.
“AI will be a backbone of America’s defense,” Huang said in a statement.
Both the U.S. and China are racing to deploy AI for military purposes ranging from developing targeting lists to drone warfare.
“As we modernize our technology, we must also modernize how we educate our leaders,” Adm. Paparo said in a statement. “Access to advanced computing capability means NPS students and faculty understand the opportunities and responsibilities that come with these technologies.”
One of AI's strengths is the ability to work through complex, fast-changing problems much faster than traditional computer simulation techniques.
“Initially, we will need to carefully manage demand as we bring this capability online,” Trenton Hancock, chief information officer at NPS, said in a statement. “But what this system really gives us is the ability to explore more complex, real-world problems, especially those that mirror the challenges our operational fleet faces every day.”
Reporting by Stephen Nellis in San Francisco; Editing by Chizu Nomiyama
Our Standards: The Thomson Reuters Trust Principles., opens new tab
AT&T (T +3.50%), a nationwide wireless and broadband carrier, closed at $23.04, up 3.50%. Earnings and subscriber growth data beat estimates, even as revenue missed expectations.
Trading volume reached 177.6 million shares, coming in about triple its three-month average of 57.9 million shares.
How the markets moved todayThe S&P 500 (^GSPC -0.14%) fell 0.13% to 7,499, while the Nasdaq Composite (^IXIC -0.57%) declined 0.57% to 25,691. Among U.S. wireless telecommunications services peers, Verizon Communications (VZ +1.17%) rose 1.16% to $44.29, while T-Mobile US (TMUS +0.19%) was little changed, edging down 0.09% to $190.94.
What this means for investorsInvestors cheered AT&T’s results despite a slight revenue miss. More important was strong subscriber growth, especially as investors eyed the upcoming initial quarterly report from Space Exploration Technologies (SPCX -6.70%).
SpaceX’s Starlink service could be a big disruptor for the existing wireless market, but today’s results indicate AT&T isn’t seeing it yet. Investors should continue to watch how space-based broadband develops, though. SpaceX isn’t the only player in the game. AST SpaceMobile (ASTS -2.18%) is also building a satellite network to provide broadband directly to smartphones anywhere on Earth.
For now, the focus was on AT&T's continued growth. The company gained 432,000 postpaid phone net subscribers during the quarter, surpassing Wall Street's expectations of 338,500 additions.
With competition coming from satellite-based solutions, though, AT&T investors should closely follow what SpaceX says about its existing Starlink business when it reports earnings on Aug. 4.
Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile. The Motley Fool recommends T-Mobile US and Verizon Communications. The Motley Fool has a disclosure policy.
Shares of AT&T (T +3.50%) rose on Wednesday after the wireless carrier delivered reassuring financial results and reaffirmed its long-term growth forecast.
Image source: The Motley Fool.
AT&T continues to attract new subscribers AT&T saw solid gains in what it calls "advanced connectivity customers." This includes 432,000 postpaid phone additions, 367,000 fiber accounts, and 279,000 fixed wireless clients.
AT&T is on track to reach over 60 million total fiber locations by the end of 2030, up from 38.6 million at the end of the second quarter. That bodes well for the telecommunications titan's customer growth and retention efforts, as more than 40% of households with AT&T's home internet services also elected to become wireless subscribers.
"With an industry-leading position in fiber -- the best connectivity technology available -- we believe our network performance and operating scale can't be matched," CEO John Stankey said.
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All told, AT&T's revenue rose 2.3% year over year to $31.6 billion, while its adjusted earnings jumped 20% to $0.65 per share.
Additionally, the telecom giant's free cash flow increased by 7% to $4.7 billion, enabling AT&T to reward its shareowners with $4.1 billion in dividends and stock buybacks.
SpaceX isn't a threat yet Better still, AT&T reaffirmed its full-year and long-term growth targets. Management continues to expect adjusted earnings per share of $2.25 to $2.35 in 2026. The company also remains on track to generate annual free cash flow of over $18 billion this year and $21 billion by 2028.
This reiterated guidance helped to lessen investors' fears regarding competition from satellite-based communication services like SpaceX's Starlink and its potential to crimp AT&T's profitability.
The wireless leader's shareholders breathed a sigh of relief, and its stock price rose in turn.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Netflix remains a high-quality, profitable, global leader with strong margins and robust free cash flow. Revenue growth is decelerating, with Q2 at 13.4% and Q3 guidance pointing to 11.7%, tempering upside at current valuation. Management maintains a shareholder-friendly capital allocation, including $4.7B in Q2 buybacks and $12.5B full-year free cash flow guidance.
NEW YORK--(BUSINESS WIRE)--BlackRock, Inc. (NYSE:BLK) today announced that its Board of Directors has declared a quarterly cash dividend of $5.73 per share of common stock, payable September 22, 2026 to shareholders of record at the close of business on September 8, 2026. About BlackRock BlackRock's purpose is to help more and more people experience financial well-being. As a fiduciary to investors and a leading provider of financial technology, we help millions of people build savings that ser.
Intel (INTC -2.47%) CEO Lip-Bu Tan told CNBC in May that "multiple customers" were working with the company's foundry business, but that it was his personal policy not to name them. On Tuesday, Intel finally named one.
Cybersecurity specialist Fortinet will use Intel's foundry (the business that manufactures chips for other companies) to produce its next-generation security chip, called the SP6, the two companies announced. The chip will be built on the Intel 4 process, and Fortinet becomes the first named outside customer for the foundry since Tan took over in March 2025.
Investors saw plenty to like. Intel shares jumped more than 8% on Tuesday to close at $105.40, adding to a run that has lifted the stock more than 300% over the past year.
And the timing raises the stakes. Intel reports second-quarter results after the market closes on Thursday, July 23.
So what does the Fortinet deal actually prove -- and what should investors watch for in the report?
Image source: Intel.
A name matters more than the chip Intel's foundry effort has never lacked announcements. What it has lacked is named, committed customers. And Intel has yet to land a major one for its most advanced manufacturing processes, known as 14A and 18A.
That history is what makes the Fortinet deal both encouraging and limited.
On the positive side, a company has now publicly committed a next-generation product to Intel's manufacturing. That is the kind of outside validation the foundry strategy has been missing, and it arguably makes the next customer conversation easier. Fortinet is a credible name, too. The cybersecurity company's dedicated security chips serve a market where demand has been climbing for years.
However, the SP6 will be built on Intel 4. That's an older, less advanced process, introduced in 2023 for the compute tile in Intel's own Core Ultra PC chips -- not the leading-edge technology Intel's turnaround ultimately depends on. A named customer on Intel 4 is progress. It isn't the marquee win that would prove Intel can manufacture the industry's most advanced chips in large quantities.
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The economics are still tiny The deal's financial weight is the other reason to stay level-headed. In the first quarter, Intel Foundry generated $5.4 billion of revenue, up 16% year over year. But nearly all of that came from making Intel's own products. External foundry revenue (money from manufacturing chips for outside customers) was just $174 million in the quarter. That's a sliver for a company that posted $13.6 billion in total revenue.
Demand for Intel's own chips, at least, is trending the right way -- even as the company confirmed this week that it is trimming jobs in that same data center unit. First-quarter revenue in the company's data center and artificial intelligence (AI) segment rose 22% year over year, faster than the company's overall 7% growth rate.
"The next wave of AI will bring intelligence closer to the end user," Tan said in the company's first-quarter earnings release, adding that the shift "is significantly increasing the need for Intel's CPUs and wafer and advanced packaging offerings."
Even so, Intel's reported bottom line is still in the red while it builds out capacity. The company posted a net loss of $3.7 billion in the first quarter -- though $4.1 billion of restructuring and impairment charges, largely a writedown of Mobileye goodwill, more than accounted for it. On a non-GAAP basis, which strips out those and other items, Intel earned $1.5 billion.
That's what makes Thursday's report the more important event of the week. Investors should watch three things: the trajectory of external foundry revenue, the size of the net loss, and any sign that a significant leading-edge customer is getting closer.
And the stock's run complicates the setup. After rising more than 300% in a year, Intel trades at nearly 90 times forward earnings -- a multiple that assumes the turnaround works, not one that leaves room for it to stumble. For a company still in the red on a reported basis, that is a lot of confidence to carry into an earnings report. And Tuesday's move, which came amid a broad chip-sector rally, showed how eager the market is to reward any scrap of foundry progress.
The Fortinet announcement is the first outside proof point of the Tan era, and I don't want to diminish it. A foundry needs customers willing to say so publicly, and now Intel has one. But the deal contributes a signal -- Intel didn't disclose what it contributes in dollars. At this valuation, Intel needs to deliver both. I'd want to see Thursday's numbers (external foundry revenue in particular) before paying nearly 90 times forward earnings for a turnaround still finding its footing.
IBM (IBM - Free Report) came out with quarterly earnings of $2.93 per share, in line with the Zacks Consensus Estimate . This compares to earnings of $2.8 per share a year ago. These figures are adjusted for non-recurring items.
A quarter ago, it was expected that this technology and consulting company would post earnings of $1.81 per share when it actually produced earnings of $1.91, delivering a surprise of +5.52%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
IBM, which belongs to the Zacks Computer - Integrated Systems industry, posted revenues of $17.16 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.03%. This compares to year-ago revenues of $16.98 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
IBM shares have lost about 28.9% since the beginning of the year versus the S&P 500's gain of 9.7%.
What's Next for IBM?While IBM has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for IBM was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.83 on $17.03 billion in revenues for the coming quarter and $12.13 on $70.75 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Computer - Integrated Systems is currently in the top 7% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, NCR Voyix (VYX - Free Report) , has yet to report results for the quarter ended June 2026.
This maker of ATMs and other hardware and software to handle payments is expected to post quarterly earnings of $0.16 per share in its upcoming report, which represents a year-over-year change of -15.8%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.
NCR Voyix's revenues are expected to be $517.5 million, down 22.3% from the year-ago quarter.
