Track market-moving stories before they get noisy

BlackRock Inc. purchased a new stake in shares of Yext (NYSE:YEXT – Free Report) during the second quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The firm purchased 7,395,204 shares of the company’s stock, valued at approximately $34,536,000. BlackRock Inc. owned 7.38% of Yext as of its most recent filing with the Securities and Exchange Commission (SEC).

Other hedge funds and other institutional investors have also modified their holdings of the company. New York State Teachers Retirement System grew its position in Yext by 9,253.0% in the 1st quarter. New York State Teachers Retirement System now owns 9,353 shares of the company’s stock valued at $36,000 after buying an additional 9,253 shares in the last quarter. Clearstead Advisors LLC lifted its stake in shares of Yext by 147.1% in the 4th quarter. Clearstead Advisors LLC now owns 4,677 shares of the company’s stock worth $38,000 after acquiring an additional 2,784 shares during the period. Gamco Investors INC. ET AL bought a new position in shares of Yext in the first quarter valued at approximately $38,000. Able Wealth Management LLC bought a new position in shares of Yext in the first quarter valued at approximately $48,000. Finally, Sequoia Financial Advisors LLC acquired a new position in shares of Yext during the first quarter valued at approximately $49,000. 70.98% of the stock is currently owned by institutional investors.

Yext Stock Performance Shares of NYSE YEXT opened at $6.52 on Wednesday. The stock’s fifty day simple moving average is $5.55 and its 200 day simple moving average is $4.76. The stock has a market capitalization of $653.62 million, a price-to-earnings ratio of 93.14 and a beta of 1.13. The company has a quick ratio of 0.79, a current ratio of 0.79 and a debt-to-equity ratio of 6.03. Yext has a 52-week low of $3.27 and a 52-week high of $9.19.

Yext (NYSE:YEXT – Get Free Report) last announced its earnings results on Tuesday, September 1st. The company reported $0.21 EPS for the quarter, beating the consensus estimate of $0.17 by $0.04. The business had revenue of $111.10 million during the quarter, compared to the consensus estimate of $111.30 million. Yext had a return on equity of 43.47% and a net margin of 8.93%.Yext’s revenue was down 1.8% compared to the same quarter last year. During the same period in the prior year, the business posted $0.13 earnings per share. As a group, sell-side analysts forecast that Yext will post 0.41 earnings per share for the current fiscal year. Insider Buying and Selling In other news, Director Daniel J. Englander purchased 76,190 shares of Yext stock in a transaction that occurred on Monday, July 13th. The stock was acquired at an average price of $5.22 per share, for a total transaction of $397,711.80. Following the transaction, the director owned 141,190 shares in the company, valued at $737,011.80. The trade was a 117.22% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Seth H. Waugh acquired 133,000 shares of the stock in a transaction on Thursday, June 11th. The shares were purchased at an average price of $3.75 per share, for a total transaction of $498,750.00. Following the completion of the transaction, the director owned 319,411 shares in the company, valued at approximately $1,197,791.25. This represents a 71.35% increase in their position. The SEC filing for this purchase provides additional information. 7.80% of the stock is owned by insiders.

Yext News Summary Here are the key news stories impacting Yext this week:

Positive Sentiment: Earnings beat expectations: Yext reported quarterly adjusted EPS of $0.21, above the $0.17 consensus estimate and up from $0.13 a year earlier. Adjusted EBITDA reached $34.0 million, representing a 31% margin. Yext Q2 Earnings Beat Estimates Positive Sentiment: AI and product expansion provide potential catalysts: The company expanded its agentic-AI capabilities for enterprise brands and small businesses, released a working Corvo AI prototype, and completed the acquisition of GoShine. These initiatives could improve Yext’s competitive positioning and support future growth. Yext Expands Agentic Capabilities Neutral Sentiment: Profitability is stabilizing, but investors await a growth reacceleration: Analysts characterize Yext’s product evolution as improving profit stability, while noting that a meaningful sales recovery has not yet emerged. The company’s 96% dollar-based net retention rate indicates relative customer stability but does not signal expansion. Yext Product Evolution and Sales Recovery Negative Sentiment: Revenue and core recurring metrics declined: Second-quarter revenue fell 1.8% year over year to $111.1 million, slightly below the $111.3 million consensus estimate. Annual recurring revenue decreased to $440.8 million from $444.4 million, while GAAP net income dropped to $13.1 million from $26.8 million. These results reinforce concerns that AI investments have not yet translated into sales growth. Yext Q2 Sales Decline Analysts Set New Price Targets YEXT has been the subject of a number of research reports. Zacks Research lowered Yext from a “strong-buy” rating to a “hold” rating in a research note on Monday, August 17th. Weiss Ratings raised Yext from a “sell (d)” rating to a “sell (d+)” rating in a research note on Wednesday, June 3rd. One investment analyst has rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $6.67.

Check Out Our Latest Stock Analysis on YEXT

Yext Profile (Free Report)

Yext, Inc is a software-as-a-service company that provides a platform for digital knowledge management. Its core offering enables businesses to centrally manage and synchronize public-facing information—such as location details, product descriptions and service offerings—across a network of search engines, mapping services, voice assistants and third-party directories.

The Yext platform is built around a proprietary Knowledge Graph, which stores and structures data to ensure consistency and accuracy.

Recommended Stories Five stocks we like better than Yext Dutch Bros Sell-Off Creates a Growth Opportunity NVIDIA’s MediaTek Bet Shows How It Plans to Defend Its AI Moat Is Abercrombie & Fitch’s Hot Streak Just Getting Started? Medtronic’s Stars Are Aligning for a Price Recovery Want to see what other hedge funds are holding YEXT? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Yext (NYSE:YEXT – Free Report).

Receive News & Ratings for Yext Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Yext and related companies with MarketBeat.com's FREE daily email newsletter.

It has been about a month since the last earnings report for CNA Financial (CNA - Free Report) . Shares have lost about 8.1% in that time frame, underperforming the S&P 500.

But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is CNA Financial due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

CNA Q2 Earnings Beat on Improved Investment Income, Premium Growth

CNA Financial Corporation reported second-quarter 2026 core earnings of $1.19 per share, which beat the Zacks Consensus Estimate of $1.04 by 14.4%. The bottom line decreased 3.3% year over year. Revenues rose 3% year over year to $3.46 billion and surpassed the consensus estimate of $3.34 billion by 3.6%. Higher investment income and premium growth supported the top line, while the Property & Casualty combined ratio deteriorated.

CNA’s Premium Growth Supports ResultsProperty & Casualty net written premiums increased 4% year over year to $2.97 billion. Net earned premiums rose 3% to $2.66 billion, aided by 11% new business growth to a record $718 million and a 2% renewal premium change.
Retention remained 83%, while the rate change was flat. Management noted that rate increases in casualty lines affected by social inflation and in Specialty offset property declines, workers’ compensation and International.

CNA Financial’s Underwriting Margin NarrowsP&C underwriting gain fell 39% year over year to $92 million. The combined ratio worsened 240 basis points to 96.5%, reflecting a 250-basis-point increase in the loss ratio to 66.4%.

The underlying combined ratio deteriorated 250 basis points to 94.2%. The underlying loss ratio increased 260 basis points to 64.1%, while the expense ratio improved 10 basis points to 29.7%. Catastrophe losses were $60 million, down from $62 million a year earlier.

CNA’s Specialty and Commercial TrendsSpecialty net written premiums grew 5% year over year to $937 million, while net earned premiums increased 2% to $878 million. Our estimate for net written premiums was $875.8 million. Its combined ratio deteriorated 290 basis points to 96.5%, as the underlying loss ratio rose across various lines.

Commercial net written premiums advanced 5% to $1.64 billion, and net earned premiums rose 3% to $1.44 billion. Our estimate for net written premiums was $1.57 billion. The combined ratio deteriorated 170 basis points to 96.5%. Higher losses in excess casualty and workers’ compensation were partly offset by a 60-basis-point improvement in the expense ratio.

CNA Financial’s International Results WeakenInternational net written premiums declined 2% year over year to $385 million, though net earned premiums increased 4% to $337 million. Excluding currency fluctuations, net written premiums fell 3%. Our estimate for net written premiums was $352.6 million.

The segment’s combined ratio deteriorated 410 basis points to 96.9%. The expense ratio increased 200 basis points due to investments in talent and technology and higher acquisition costs, while catastrophe losses rose to $7 million from $5 million.

CNA’s Investment Income Provides SupportNet investment income increased 6% year over year to $701 million. The increase was driven by higher returns on limited partnerships and common stock, as well as higher income from fixed-income securities, resulting from a larger invested asset base and favorable reinvestment rates. Our estimate for net investment income was $705.2 million. The Zacks Consensus Estimate was pegged at $705 million.

Limited partnership and common stock income rose to $131 million from $100 million. Hedge funds and common stocks generated strong returns, while private equity remained a positive contributor. P&C core income nevertheless declined 5% to $426 million as lower underwriting results outweighed stronger investment income.

CNA Financial’s Costs and Other SegmentsTotal claims, benefits and expenses increased 3% year over year to $3.42 billion. Insurance claims and policyholders’ benefits rose to $2.17 billion from $2.09 billion, while amortization of deferred acquisition costs increased to $481 million from $469 million. Our estimate was $3.34 billion. Life & Group posted a core loss of $10 million versus core income of $1 million a year earlier, reflecting lower investment income. Net earned premiums in Life & Group were $103 million, down 2.8% year over year. Our estimate was $102.7 million. Corporate & Other recorded a core loss of $92 million, narrower than $114 million, including a $77 million after-tax legacy mass tort charge.

CNA’s Capital Position and DividendNet income increased 7% year over year to $321 million, or $1.18 per share. Core return on equity declined 50 basis points to 10.5%. Book value per share was $41.34 as of June 30, 2026, declining 3.7% from 2025 end. Book value excluding accumulated other comprehensive income was $45.83, up 4% from year-end after adjusting for $2.96 per share of dividends paid. As of June 30, 2026, statutory capital and surplus stood at $11.2 billion. The board declared a quarterly dividend of 48 cents per share, payable Sept. 3, 2026, to shareholders of record as of Aug. 17.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a downward trend in estimates revision.

VGM ScoresCurrently, CNA Financial has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock has a score of B on the value side, putting it in the top 40% for this investment strategy.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been broadly trending downward for the stock, and the magnitude of this revision indicates a downward shift. Notably, CNA Financial has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerCNA Financial belongs to the Zacks Insurance - Property and Casualty industry. Another stock from the same industry, RLI Corp. (RLI - Free Report) , has gained 2.5% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

RLI Corp. reported revenues of $463.14 million in the last reported quarter, representing a year-over-year change of +4.9%. EPS of $0.83 for the same period compares with $0.84 a year ago.

For the current quarter, RLI Corp. is expected to post earnings of $0.54 per share, indicating a change of -34.9% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.9% over the last 30 days.

RLI Corp. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

Key Takeaways EME's Building Services revenues rose 5.6% to $837.7M, with growth across service operations.Building Services operating income jumped 26.6%, while margin expanded 130 bps to 7.6%.HVAC retrofits, upgrades and overhead efficiency could support further margin expansion for EME. EMCOR Group, Inc. (EME - Free Report) is seeing its Building Services business benefit from improving demand across its service operations and a more efficient cost structure. Mechanical Services is gaining from a larger service base and customer spending on building upgrades, while the site-based services business is benefiting from actions taken to improve its contract portfolio. These trends are strengthening EMCOR’s earnings profile and provide a basis for examining the scope for further margin improvement.

Building Services revenues increased 5.6% year over year to $837.7 million in the second quarter of 2026. Mechanical Services revenues rose nearly 5% year over year, on broad-based strength across its service lines. Commercial site-based services also returned to growth, with revenues increasing roughly 11% year over year, as new facilities maintenance contracts and expanded customer relationships contributed to the improvement.

This revenue growth was accompanied by a stronger earnings performance. Building Services operating income increased 26.6% year over year to $63.4 million, while operating margin expanded 130 basis points (bps) to 7.6%. Gross profit margin rose 70 bps, aided by favorable mix and improved execution. Restructuring within site-based services also reduced SG&A margin by 60 bps, creating additional operating leverage.

The next phase of margin improvement will depend on the balance between revenue growth and cost efficiency. Mechanical Services has several demand drivers, including HVAC retrofits, control-system upgrades, indoor air quality projects and energy-efficiency initiatives. The leaner cost structure in site-based services also gives EMCOR an opportunity to capture more earnings from incremental revenues.

With growth returning across both parts of Building Services and operating income rising substantially faster than sales, EMCOR has a favorable foundation for further margin expansion. Execution, contract mix and overhead efficiency will remain important in determining how much of this growth translates into higher profitability.

EMCOR and Its Key Infrastructure CompetitorsEMCOR competes closely with Quanta Services, Inc. (PWR - Free Report) and MasTec, Inc. (MTZ - Free Report) in the infrastructure and engineering construction market.

Quanta operates across utility, technology and load center markets, providing electrical, mechanical, civil and fabrication services. The company’s broad capabilities and long-standing customer relationships support its position in large and complex infrastructure projects. Quanta is also expanding across technology, power generation and utility markets, increasing exposure to several major infrastructure investment areas. However, exposure to utility capital spending and the timing of large project awards can affect the pace of growth.

MasTec maintains a diversified infrastructure platform spanning telecommunications, power delivery, clean energy and infrastructure, pipeline and mission-critical construction. This broad exposure allows MasTec to benefit from multiple infrastructure investment themes, including data center development, grid modernization, power generation and natural gas infrastructure. However, project timing across individual end markets can create variability, as seen with near-term deferrals in Communications despite strength across Power Delivery, Pipeline and Clean Energy & Infrastructure.

EMCOR’s execution-focused operating model, diversified end-market exposure and balanced project portfolio provide a competitive advantage in terms of stability and demand resilience. However, Quanta’s broad infrastructure capabilities and MasTec’s diversified infrastructure presence may shape competition as investment in digital and critical infrastructure continues to increase.

EME Stock’s Price Performance & Valuation TrendShares of this Connecticut-based infrastructure service provider have gained 20.2% year to date, outperforming the Zacks Building Products - Heavy Construction industry, the Zacks Construction sector and the S&P 500 Index.

Image Source: Zacks Investment Research

EME stock is currently trading at a premium compared with the industry peers, with a forward 12-month price-to-earnings (P/E) ratio of 20.54, as evidenced by the chart below.

Image Source: Zacks Investment Research

Earnings Estimate Revision of EMEEME’s earnings estimates for 2026 and 2027 have moved upward in the past 30 days to $33.04 and $37.14 per share, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 27.7% and 12.4%, respectively.

Image Source: Zacks Investment Research

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

The Trump administration has filed a brief supporting OpenAI in its dispute with the New York Times (NYT.N) and other newspapers ​over the company's use of their work to train the large language models behind ‌ChatGPT, saying AI training generally makes fair use of copyrighted material.

The brief, filed in Manhattan federal court on Tuesday, appears to be the first time the U.S. government has weighed in on a wave of cases brought by copyright owners including ​authors, publishers, music labels and news outlets over AI training. A brief has advisory rather than ​legal weight but could bolster tech companies as they fight the claims.

"The United States has ⁠a strong interest in this court rejecting any argument that training LLMs on copyrighted texts violates ​copyright law" based on concerns including scientific advancement and national security, the brief said.

Spokespeople for the Times and ​OpenAI did not immediately respond to requests for comment on the filing on Wednesday.

"AI dominance is critical to promote national security, prosperity, and economic mobility for all Americans," U.S. Associate Attorney General Stanley Woodward said in a statement posted ​to X. "This Administration will never let our Nation be at a disadvantage relative to our foreign adversaries ​based on a plainly incorrect understanding of copyright law."

U.S. Commerce Secretary Howard Lutnick separately told G20 officials at a meeting in ‌North ⁠Carolina on Wednesday that their countries should embrace fair use and allow AI companies to train their models on creators' work while finding a way to "protect artists."

The Times' lawsuit, first filed in 2023, accuses OpenAI and its largest financial backer, Microsoft (MSFT.O), of using millions of newspaper articles without permission to train OpenAI's popular ​chatbot. The case is one ​of dozens brought by ⁠copyright holders against tech companies such as OpenAI, Anthropic and Meta Platforms for what they say is misuse of their material to train AI systems.

All of ​the pending cases will likely revolve around whether AI systems make fair ​use of copyrighted ⁠material by using it to create new, transformative content. The first two judges to consider the issue issued diverging rulings last year.

The government agreed on Tuesday with tech companies that AI training is "extraordinarily" transformative.

"Beyond the subject matter ⁠of ​this litigation, LLMs are already helping researchers across fields achieve major ​breakthroughs," the brief said. "Constraining LLM development under a misunderstanding of fair use doctrine would thwart such creative and scientific progress while ​hindering American prosperity and economic mobility."

Highlights

Curaleaf Offers a 45% Premium and Meaningful Future Upside: Aurora shareholders can realize immediate value alongside the opportunity to participate in the upside of a substantially larger, more diversified cannabis platform. Aurora Promotes a "Debt-Free" Balance Sheet While Overlooking Years of Shareholder Dilution to Fund It: Since September 2020, Aurora has raised $398 million in capital at the expense of shareholders through equity issuances, resulting in massive shareholder dilution. Additional dilution continues through its existing "At the Market" (ATM) program. Aurora's Board Doesn't Believe Its Own Valuation Argument: Within the last two quarters, Aurora's Board sold shares through its ATM program diluting shareholders at average prices of US$3.57 and US$3.09 per share, materially below the price it now argues is inadequate.  Aurora's Own Outlook Points to a Business Going Backwards, without any Go-Forward Vision: Management's own guidance calls for fiscal 2027 revenue to return to approximately fiscal 2025 levels, with adjusted EBITDA expected to decline precipitously from fiscal 2026; whereas Curaleaf has presented a clear vision to create value. Aurora's Business is Not Generating Cash, It is Burning It: Operating cash flow was negative in the June quarter, and shareholders remain exposed to substantial additional equity dilution through existing ATM programs. Curaleaf has generated $157 million of operating cash in the LTM period. Aurora's Never-Ending Transformation is Not Working: A six-year program is not a transformation. It is the business model. The current CEO was appointed in September 2020, and business transformation costs have been charged in seven consecutive years.  Aurora's Attacks Ignore Curaleaf's Superior Fundamentals: Curaleaf generates operating cash flow, is well positioned to benefit from multiple industry and regulatory catalysts and invests for growth. Access to institutional debt markets reflects lender confidence in this positioning. Curaleaf Offers a Stronger Business and a Better Platform. Shareholders receive equity in a company with broad exposure across U.S. medical and adult-use markets, positive cash flow generation, an international footprint with expansion opportunities, and multiple regulatory catalysts, with a strong growth profile and future cash-generating ability.  , /PRNewswire/ -- Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF) ("Curaleaf"), a leading international provider of consumer and medical cannabis products, today responded to misleading statements contained in Aurora Cannabis Inc.'s (TSX: ACB) (NASDAQ: ACB) ("Aurora") Directors' Circular and reiterated its belief that the Curaleaf offer represents the most compelling path forward for Aurora shareholders.

"Aurora's continued refusal to engage in a meaningful price discussion regarding this transaction is disappointing and shows disregard for the interests of the Company's own shareholders. Not once has there been a counteroffer presented to us, which shows managements' motives to preserve their own positions versus creating value for shareholders," said Boris Jordan, Chairman and Chief Executive Officer of Curaleaf. "Rather than working constructively to evaluate a proposal that delivers immediate value and a substantial premium, Aurora's Board has chosen to rely on hollow arguments that are contradicted by its own actions."

Jordan continued: "Aurora's response sidesteps the fundamental question facing shareholders: if management's plan creates greater value than our offer, where is the evidence? Aurora's own guidance points to declining revenue and EBITDA, continued cash burn and further shareholder dilution. By contrast, Curaleaf offers shareholders a 45% premium and immediate exposure to one of the largest and most diversified cannabis companies in the world."

"We remain ready and willing to engage constructively with Aurora to discuss this offer at any point," Jordan concluded.

FAIR VALUE IS SET BY THE MARKET

Aurora argues that Curaleaf's offer fails to reflect the sum of its parts and points to historical trading levels as evidence of intrinsic value, while also stating that the $5 cap limits incremental upside.

We disagree and Aurora's own actions demonstrate they do as well. Here are the facts:

The offer represents a 45% premium to Aurora's unaffected trading price, which is among the 63rd percentile of Canadian M&A premiums paid over the last 10 years. Excluding cash, the premium represents 110%.  This premium is despite Aurora's management guiding to a smaller, less profitable business in fiscal 2027. In addition to the premium, the offer represents an implied CY2026E Adjusted EBITDA multiple of 12.0x, more than 68% higher than comparable Canadian peers. Aurora's Board approved dilutive equity issuances through its ATM program at average prices of US$3.57 during fiscal 2026 and more recently US$3.09 during the June quarter, prices materially below the Curaleaf offer and the value it now claims shareholders should reject. Aurora's share price has hit all-time lows under the current management team. Constant restructuring and inventory impairment charges presented as non-recurring for seven consecutive years. Aurora's management has consistently failed to properly integrate acquisitions and auditors have reported ineffective controls over inventory and biological assets in each year since FY2020 (KPMG resigned as Aurora's auditor in April 2024). The US$5.00 cap represents an 82% premium to Aurora's 30-day VWAP on the unaffected date of August 10, 2026 and a 197% premium on an ex-cash basis. Aurora's criticism of the cap structure is trying to deflect attention from the underlying significant and compelling premium the US$5.00 cap represents. The US$5.00 cap price represents an implied premium within the 92nd percentile of Canadian M&A premiums over the last 10 years. The proposed structure encourages Aurora shareholders to complete a transaction as soon as possible to lock in the exchange ratio and participate in the potential upside with Curaleaf. This is the same structure that Aurora itself used in its prior hostile M&A activity and its cap value had already been hit when the bid was launched publicly. The question shareholders must ask the Board is simple – If Aurora's assets were worth substantially more apart than together why haven't those separation opportunities been pursued after six years of strategic reviews and repositioning efforts by the same management team?

THE DECEMBER 2025 SHARE PRICE IS IRRELEVANT

Aurora highlights that its shares traded above US$5.00 as recently as December 2025.

Shareholders should focus on where the business is headed, not where the share price traded nine months ago. Since December 2025:

Canadian medical revenue has declined significantly and will continue to suffer as the reimbursement rates by Veterans Affairs Canada have been reduced by almost 30%; German regulators have removed insurance reimbursement, a meaningful contributor to Aurora's German business; Quarterly adjusted EBITDA has fallen by 63%; Operating cash flow has turned negative; Management has guided fiscal 2027 revenue to decline toward fiscal 2025 levels; and Fiscal 2027 adjusted EBITDA is expected to be significantly below fiscal 2026 levels. The market is a forward looking mechanism and Aurora's unaffected share price reflected weakening fundamental prospects for fiscal 2027 and beyond prior to our bid.

THE REAL QUESTION IS NOT BALANCE SHEET BUT EQUITY DILUTION

Aurora frequently emphasizes that it has no debt.

This argument omits a critical distinction: Equity shareholders have financed that balance sheet through multiple dilutive ATM programs through which Aurora has sold stock.

Since September 2020 alone, approximately US$398 million has been raised through dilutive share issuances, diluting shareholders by approximately 31%. Aurora maintains additional ATM capacity, while the business continues to rapidly burn cash. Operating cash flow was negative C$4.4 million in the June quarter. Debt can be repaid through cash flow. Equity dilution is permanent. Shareholders should decide for themselves which approach has better preserved ownership value.

CURALEAF'S BUSINESS IS LARGER, MORE DIVERSIFIED AND BETTER POSITIONED

Aurora has sought to characterize Curaleaf's capital structure, tax position, exchange listing, and dual-class share structure as disadvantages.

This argument belies the vastly superior fundamentals of Curaleaf's business. The facts are straightforward:

Curaleaf generated $50 million in operating cash flow and $17 million in free cash flow during the first half of 2026 while continuing to invest $33 million in growth. Curaleaf successfully raised US$500 million of senior secured notes from sophisticated institutional investors, reflecting lender confidence in the durability of its business and future cash flows. CURALEAF'S UNCERTAIN TAX POSITION (UTP) ADDRESSED THROUGH FEDERAL RESCHEDULING

Uncertain tax positions related to IRC section 280E are a well understood phenomenon in the U.S. cannabis market and are captured as liabilities in the valuations and trading multiples of U.S. Cannabis MSOs. The reclassification of medical cannabis from Schedule I to III on April 23, 2026 has removed the 280E tax treatment and ceased future accruals of the liability. The rescheduling of adult use cannabis is currently in process by the DEA and a similar outcome is expected. Curaleaf's UTP balance as a percentage of TEV (13%) is one of the lowest relative to the U.S. cannabis peer average of ~30%. CURALEAF'S DEBT POSITION IS WELL MANAGED AND SUPPORTED BY OPERATING CASH FLOWS

Curaleaf generated US$145 million of operating cash flow over the LTM period ended June 30, 2026, and has the highest revenue and is one of the most profitable operators based on EBITDA amongst its U.S. cannabis peers. Net debt [excluding UTP] represents ~25% of the Company's total capitalization which is below the peer average of 37%. Curaleaf's operating cash flow is expected to grow to approximately US$165 million by FY27E which represents growth of ~20% over FY25 operating cash flow of US$138 million, significantly above the peer average of approximately 3%. Curaleaf's profitability and continued growth of operating cash flows allow for rapid de-leveraging from ~3.3x net debt to LTM adjusted EBITDA to 2.7x by FY2027E. On a pro forma basis, synergies and consolidated operating cash flows will further support de-leveraging. TSX-LISTED CURALEAF LIQUIDITY HAS PROVEN TO EXCEED THAT OF NASDAQ-LISTED AURORA

The TSX is among the largest exchanges globally with more than 2,200 listed issuers making up over C$7 trillion of market capitalization, an exchange that Aurora also trades on; The TSX is the leading exchange for cannabis issuers, representing more than US$6 billion of market capitalization across the sector, almost double the aggregate market capitalization of cannabis companies listed on the tech-heavy NASDAQ. On a 2026 YTD[1] basis, Curaleaf has traded more value on the TSX (US$297 million) relative to Aurora's value traded on the NASDAQ (US$99 million). 2026 YTD1 value traded across all Canadian listings was US$527 million for Curaleaf and US$511 million for Aurora across all ancillary US listings. Ultimately, a company's performance is a more significant driver of its performance vs. the exchange on which it trades.  CURALEAF'S DUAL CLASS STRUCTURE IS A BENEFIT AS INCENTIVES ARE ALIGNED WITH SHAREHOLDERS

Management and other Curaleaf insiders own 21 million subordinate voting shares and 31 million multiple voting shares, representing an economic interest of ~20% and approximately US$500 million of value, significantly more than Aurora's insider ownership of ~1%. Some of the largest, founder owned, sector leaders, including some of the most notable companies in the world (Alphabet, Meta, Shopify, Palantir, DoorDash, among others, as well as other U.S. MSOs such as Green Thumb Industries and Trulieve) have multi-class voting structures.  In general, Multi-Class Issuers on the TSX have had a track record of outperforming the broader S&P / TSX Composite index with returns2 of 295% vs. 152% for the broader index. Since being appointed CEO on August 16, 2024, Boris Jordan has led Curaleaf's relative share price outperformance exceeding U.S. cannabis peers by ~42 percentage points and outperformance of Aurora by ~57 percentage points over the same period. Boris Jordan has also invested significant personal wealth into building his nearly 20% stake in Curaleaf, making it into the global leader it is today.  As such, management incentives are properly aligned with shareholders.  He works in the company's headquarters with his executive team overseeing the day-to-day activities of the business, while Aurora's CEO runs a business based in Canada from his home in the U.S. SHAREHOLDERS DESERVE AN ALTERNATIVE TO YEARS OF VALUE DESTRUCTION

Aurora's management argues that it inherited historical challenges and continues to execute a transformation.

This is now the third major strategic repositioning in roughly six years. At some point, transformation ceases to be a temporary phase and becomes the operating model.

The time is up for Aurora's management team to deliver value through their strategic plan – they have had six years to execute their standalone business plan, during which Aurora: Generated cumulative operating cash flow losses of more than C$480 million. Recorded more than C$400 million of inventory impairments and business transformation costs. Taken more than five years to exit its unprofitable and eroding consumer segment. Share price declined 97%, significantly underperforming peers. The Board has maintained one of the most expensive executive compensation packages among industry peers. We encourage all shareholders to ask the following of the Board and its Special Committee:

What is different this time than the last six years? If their current iteration of the business plan and transformation is going to work, why does management's own forecast anticipate lower revenue and lower EBITDA next year? If Aurora is truly committed to maximizing value for shareholders, why have they refused to engage in a single constructive conversation regarding this shareholder maximizing transaction? Importantly, Aurora shareholders are being offered ownership in one of the largest and most diversified cannabis companies globally, with exposure to:

U.S. medical markets; U.S. adult-use markets; European medical cannabis growth; International pharmaceutical distribution; and Potential value creation associated with continued U.S. federal reform. Curaleaf's proposal delivers immediate value, participation in future growth, exposure to significant regulatory catalysts and ownership in a substantially larger and more diversified business.

We believe Aurora shareholders deserve the opportunity to evaluate the Curaleaf proposal and decide for themselves which path offers the better future.

Aurora shareholders are urged to read the offer documents carefully and in their entirety. They are also available on Curaleaf's website and on SEDAR+ (sedarplus.ca) and EDGAR (sec.gov), and Aurora shareholders are encouraged to visit https://grow.curaleaf.com/ for additional information regarding the offer, including the strategic rationale for the offer, expected benefits of the combination of the two companies, FAQs, and other relevant materials. 

Cautionary Statement Regarding Forward-Looking Statements

This press release contains certain "forward-looking statements" within the meaning of such statements under applicable securities laws. Forward-looking statements are frequently characterized by words such as "plan", "continue", "expect", "project", "intend", "believe", "anticipate", "estimate", "may", "will", "potential", "proposed" and other similar words, or statements that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward looking statements in this news release include statements regarding the terms of the Offer, the expected benefits of the Offer to the combined company and the financial and strategic benefits of the Offer noted above, synergies and efficiencies that may be achieved upon a combination of the businesses of Aurora and Curaleaf; and expectations with respect to business and geographical diversification of the combined entity. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this press release, including assumptions based upon Aurora's publicly disclosed information, and that there will be no change in the business, prospects or capitalization of Aurora or Curaleaf. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. A more complete discussion of the risks and uncertainties facing the Company appears in the Company's Annual Information Form and continuous disclosure filings, which are available at www.sedarplus.ca.

Cautionary Statement Respecting Aurora Information

The information concerning Aurora contained in this press release has been taken from, or is based upon, publicly available information filed by Aurora with securities regulatory authorities in Canada prior to the date of this press release and other public sources. Aurora has not reviewed this press release and has not confirmed the accuracy and completeness of the Aurora information contained herein. Neither Curaleaf, nor any of its officers or directors, assumes any responsibility for the accuracy or completeness of such Aurora information. Curaleaf has no means of verifying the accuracy or completeness of any of the Aurora information contained in this press release.

Notice to U.S. Holders

The Offer is being made for the securities of a company formed outside of the United States. The Offer is subject to disclosure requirements of Canada that are different from those of the United States. Financial statements included in the documents, if any, will be prepared in accordance with Canadian accounting standards and may not be comparable to the financial statements of United States companies.

It may be difficult for a securityholder in the United States to enforce his/her/its rights and any claim a securityholder may have arising under the U.S. federal securities laws, since the issuer is located in Canada, and some or all of its officers or directors may be residents of Canada or another country outside of the United States. A securityholder may not be able to sue a Canadian company or its officers or directors in a court in Canada or elsewhere outside of the United States for violations of U.S. securities laws. It may be difficult to compel a Canadian company and its affiliates to subject themselves to a U.S. court's judgment.

Securityholders should be aware that the issuer may purchase securities otherwise than under the Offer, such as in open market or privately negotiated purchases.

About Curaleaf Holdings

Curaleaf Holdings, Inc. (TSX: CURA) (OTCQX: CURLF) ("Curaleaf") is a leading international provider of consumer products in cannabis with a mission to enhance lives by cultivating, sharing and celebrating the power of the plant. As a high-growth cannabis company known for quality, expertise and reliability, the Company and its brands, including Curaleaf, Select, Grassroots, Find, Dark Heart, and Anthem provide industry-leading service, product selection and accessibility across the medical and adult use markets. Curaleaf International is powered by a strong presence in all stages of the supply chain. Its unique distribution network throughout Europe, Canada and Australasia brings together pioneering science and research with cutting-edge cultivation, extraction and production. Curaleaf is listed on the Toronto Stock Exchange under the symbol CURA and trades on the OTCQX market under the symbol CURLF. For more information, please visit https://ir.curaleaf.com.

Contacts

Media Contact
Kekst CNC
[email protected]

Investor Contact
Curaleaf Holdings, Inc.
[email protected]

Shareholder Contact 
Carson Proxy Advisors
North American Toll Free Phone: 1-800-530-5189
Local (Collect outside North America): 416-751-2066
Email: [email protected]

1 Trading activity from January 1, 2026 to August 10, 2026
2 Returns excluding dividends

SOURCE Curaleaf Holdings, Inc.

Canada Pension Plan Investment Board bought a new position in Hilltop Holdings Inc. (NYSE:HTH – Free Report) during the 2nd quarter, according to its most recent filing with the SEC. The institutional investor bought 14,800 shares of the financial services provider’s stock, valued at approximately $574,000.

Several other large investors have also recently bought and sold shares of HTH. Strategic Wealth Advisors LLC bought a new position in Hilltop in the 4th quarter worth about $33,000. EverSource Wealth Advisors LLC boosted its position in shares of Hilltop by 584.7% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,075 shares of the financial services provider’s stock valued at $33,000 after acquiring an additional 918 shares during the last quarter. Allworth Financial LP boosted its position in shares of Hilltop by 37.3% during the 4th quarter. Allworth Financial LP now owns 1,153 shares of the financial services provider’s stock valued at $39,000 after acquiring an additional 313 shares during the last quarter. Danske Bank A S purchased a new position in shares of Hilltop during the third quarter worth about $43,000. Finally, Signaturefd LLC grew its holdings in shares of Hilltop by 276.4% during the second quarter. Signaturefd LLC now owns 1,370 shares of the financial services provider’s stock worth $53,000 after purchasing an additional 1,006 shares in the last quarter. 57.13% of the stock is owned by institutional investors.

Hilltop Stock Down 0.8% Shares of NYSE:HTH opened at $37.75 on Wednesday. The stock has a market cap of $2.16 billion, a PE ratio of 13.98 and a beta of 0.88. The company’s fifty day moving average is $38.86 and its 200 day moving average is $37.75. Hilltop Holdings Inc. has a 52 week low of $30.78 and a 52 week high of $40.41.

Hilltop (NYSE:HTH – Get Free Report) last announced its quarterly earnings results on Thursday, July 23rd. The financial services provider reported $0.63 EPS for the quarter, topping analysts’ consensus estimates of $0.49 by $0.14. Hilltop had a return on equity of 7.40% and a net margin of 10.17%.The business had revenue of $315.81 million for the quarter, compared to analysts’ expectations of $306.18 million. During the same period in the previous year, the firm earned $0.57 EPS. Sell-side analysts anticipate that Hilltop Holdings Inc. will post 2.59 EPS for the current year. Hilltop Increases Dividend The business also recently announced a quarterly dividend, which was paid on Friday, August 21st. Shareholders of record on Friday, August 7th were given a $0.22 dividend. This is a boost from Hilltop’s previous quarterly dividend of $0.20. The ex-dividend date of this dividend was Friday, August 7th. This represents a $0.88 dividend on an annualized basis and a yield of 2.3%. Hilltop’s payout ratio is presently 32.59%.

Wall Street Analysts Forecast Growth A number of brokerages have recently commented on HTH. Wall Street Zen lowered shares of Hilltop from a “hold” rating to a “sell” rating in a report on Saturday, May 16th. Keefe, Bruyette & Woods lifted their price objective on shares of Hilltop from $40.00 to $42.00 and gave the stock a “market perform” rating in a report on Wednesday, August 5th. Weiss Ratings reiterated a “buy (b)” rating on shares of Hilltop in a research report on Wednesday, August 19th. Finally, Piper Sandler reissued a “neutral” rating and issued a $42.00 target price on shares of Hilltop in a research note on Tuesday, July 28th. One investment analyst has rated the stock with a Strong Buy rating, one has assigned a Buy rating and three have assigned a Hold rating to the company. According to data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $40.00.

Check Out Our Latest Analysis on Hilltop

Insiders Place Their Bets In related news, Director Rhodes R. Bobbitt sold 5,000 shares of the company’s stock in a transaction on Monday, August 24th. The stock was sold at an average price of $38.80, for a total transaction of $194,000.00. Following the completion of the sale, the director owned 25,641 shares in the company, valued at approximately $994,870.80. This represents a 16.32% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. In the last ninety days, insiders have sold 52,555 shares of company stock worth $2,087,714. 5.40% of the stock is currently owned by insiders.

Hilltop Profile (Free Report)

Hilltop Holdings, Inc (NYSE: HTH) is a Dallas, Texas–based financial holding company offering commercial banking, mortgage lending and capital markets services through its three primary subsidiaries: PlainsCapital Corporation, PrimeLending and HilltopSecurities. PlainsCapital provides deposit, lending and treasury management solutions to small and mid-sized businesses, professionals and individuals. PrimeLending specializes in home purchase and refinance loans, serving retail, wholesale and correspondent channels.

Read More Five stocks we like better than Hilltop Dutch Bros Sell-Off Creates a Growth Opportunity NVIDIA’s MediaTek Bet Shows How It Plans to Defend Its AI Moat Is Abercrombie & Fitch’s Hot Streak Just Getting Started? Medtronic’s Stars Are Aligning for a Price Recovery Want to see what other hedge funds are holding HTH? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Hilltop Holdings Inc. (NYSE:HTH – Free Report).

Receive News & Ratings for Hilltop Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Hilltop and related companies with MarketBeat.com's FREE daily email newsletter.

Key Takeaways GEHC's Photonova Spectra received CE Mark, expanding access across Europe and other CE markets.Deep Silicon enables ultra-high-definition imaging, spectral imaging and fast, wide-coverage scans.GEHC is collaborating with European institutions to evaluate Photonova Spectra across specialties. GE HealthCare Technologies Inc. (GEHC - Free Report) recently announced that its Photonova Spectra advanced photon-counting computed tomography (PCCT) system has received CE Mark, expanding access to the technology across Europe and other CE Mark-observing markets. The regulatory milestone follows FDA 510(k) clearance and Japanese regulatory approval in March 2026.

Powered by GEHC’s proprietary Deep Silicon detector technology, Photonova Spectra is designed to deliver ultra-high definition imaging, on-demand spectral and spatial imaging, and fast, wide-coverage acquisition to support disease detection, characterization and monitoring.

Per management, clinicians across Europe are seeking imaging solutions that can address growing demand while enhancing diagnostic confidence. Deep Silicon photon-counting CT combines high image clarity with the efficiency required for consistent clinical use. With the CE Mark for Photonova Spectra, GE HealthCare is expanding access to the technology among European care teams, combining Deep Silicon, ultra-high-definition imaging and wide detector coverage to support fast and comprehensive acquisitions.

GEHC Stock Trend Following the NewsGEHC stock has lost 1.1% since the announcement on Monday. Year to date, the stock has fallen 14.2% compared with the industry’s 17% decline. However, the S&P 500 has risen 10.8% in the same timeframe.

The CE Mark expands GEHC’s commercial opportunity in the growing photon-counting CT market and strengthens its premium imaging portfolio. The system’s regulatory progress across the United States, Japan, Europe and other CE Mark-recognizing markets demonstrates the company’s ability to advance innovative imaging technologies. Increasing commercial opportunities, supported by clinical collaborations and strong innovation capabilities, could contribute to revenue growth and strengthen GE HealthCare’s imaging business.

GEHC currently has a market capitalization of $32.17 billion.

Image Source: Zacks Investment Research

More on Photonova SpectraA major differentiator of Photonova Spectra is its proprietary Deep Silicon detector technology, which enables precise photon energy measurement and supports advanced spectral imaging. The system provides 80 mm detector coverage and a rapid 0.23-second rotation speed, enabling fast acquisitions while improving visualization of subtle tissue variations, small lesions and vascular structures. Its one-scan, full-fidelity approach allows spectral and spatial imaging to be accessed on demand without requiring exam-specific protocols.

Using NVIDIA’s accelerated computing platform and CUDA-optimized reconstruction, the system is engineered to manage data volumes up to 50 times greater than conventional CT while delivering timely images. Automated features, including Auto Positioning and the CT ONE operator environment, further aim to improve consistency and simplify CT workflows.

Its clinical potential spans multiple specialties, including neurology, oncology, musculoskeletal, thoracic imaging and cardiology. Applications include visualization of tiny anatomical structures, lesion characterization, iodine mapping, detection of small fractures, high-detail chest imaging, and assessment of coronary stents, plaque and myocardium.

GEHC is also collaborating with UZ Brussel – Vrije Universiteit Brussel and Rigshospitalet to evaluate Photonova Spectra across cardiology, oncology, neurology, spectral imaging and musculoskeletal imaging. These collaborations could generate clinical evidence and support research into quantitative imaging, tissue characterization and spectral biomarkers, broadening the system’s clinical applications.

Industry Prospects Favoring the MarketGoing by the data provided by Business Research Insights, the global photon counting CT market is valued at $0.5 billion in 2026 and is expected to witness a CAGR of 29.4% through 2035.

Factors like regulatory approvals, strategic collaborations, rising demand for advanced diagnostic imaging and competitive innovation are boosting the market’s growth.

Other NewsGE HealthCare recently announced three additions to its Vivid cardiovascular ultrasound portfolio — Vivid Explorer, Vivid Advanced and Vivid Focus — designed to support cardiac imaging and workflow needs across different care settings.

All three new systems use cSound, a software-based imaging architecture designed to enhance contrast, resolution and tissue visualization. AI-enabled tools, including AI Auto Measure 2D, Easy AutoEF, Easy AFI LV and AI Cardiac Auto Doppler, are designed to reduce manual steps and simplify cardiac measurements.

GEHC’s Zacks Rank & Key PicksCurrently, GEHC carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader medical space are Globus Medical (GMED - Free Report) , Veracyte (VCYT - Free Report) and West Pharmaceutical (WST - Free Report) .

Globus Medical, currently sporting a Zacks Rank #1 (Strong Buy), reported a second-quarter 2026 adjusted earnings per share (EPS) of $1.34, which surpassed the Zacks Consensus Estimate by 19.6%. Revenues of $789.6 million beat the Zacks Consensus Estimate by 0.4%. You can see the complete list of today’s Zacks #1 Rank stocks here.

GMED has an estimated long-term earnings growth rate of 12.4%. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 27.9%.

Veracyte, currently flaunting a Zacks Rank #1, reported a second-quarter 2026 adjusted EPS of 54 cents, which surpassed the Zacks Consensus Estimate by 25.6%. Revenues of $150.3 million beat the Zacks Consensus Estimate by 4.1%.

VCYT has an estimated earnings growth rate of 8.4% for 2026. The company’s earnings beat estimates in each of the trailing four quarters, the average surprise being 41.8%.

West Pharmaceutical, carrying a Zacks Rank #2 (Buy) at present, reported second-quarter 2026 adjusted EPS of $2.37, which beat the Zacks Consensus Estimate by 13.9%. Revenues of $872.3 million surpassed the Zacks Consensus Estimate by 4.2%.

WST has an estimated long-term earnings growth rate of 16%. WST’s earnings surpassed estimates in the trailing four quarters, the average surprise being 17.4%.

Key Takeaways Datadog's AI suite is broadening with autonomous tools and security capabilities for agentic workloads.Datadog's $100K ARR customer base rose 23% year over year to roughly 4,720 accounts.Datadog raised 2026 revenue guidance to $4.45-$4.47 billion despite a key customer's usage reduction. Shares of Datadog (DDOG - Free Report) have surged 64.6% year to date, outperforming the broader Zacks Computer and Technology sector's growth of 15.5%, as the AI-powered observability and security platform continues to convert enterprise AI adoption into accelerating revenues.

Yet even after this sharp climb, the investment case for Datadog is not about chasing momentum. It rests on a set of fundamental drivers — expanding large-customer relationships, deepening AI-native product adoption, and a raised full-year outlook — that suggest the stock is best treated as a hold for existing shareholders rather than a fresh buy or a name to exit.

Investors already positioned in DDOG have good reason to stay put, while those still on the sidelines may be better served waiting for a more attractive entry point, given how much of the good news is already reflected in the price.

DDOG Outperforms Industry, Sector YTD
Image Source: Zacks Investment Research

AI Product Momentum Is Broadening the PlatformDatadog advanced its AI roadmap with the general availability of Bits Code, Bits Chat and Bits Agent Builder, extending its Bits AI suite toward fully autonomous incident detection, investigation and remediation. It also introduced AI Guard, a capability built to protect AI agents from prompt injection and data-poisoning attacks, addressing a security gap opening up as enterprises push more agentic workloads into production. Datadog additionally completed its acquisition of Adaptive ML, a frontier AI reinforcement-learning specialist, and was named a Leader in the Gartner Magic Quadrant for Observability Platforms for the sixth consecutive year. Together, these moves reinforce a widening platform rather than a single-product story, supporting the hold thesis even as the stock digests its year-to-date gains.

Customer Growth Remains Broad-Based, Not AI-OnlyDatadog's own disclosures point to genuinely durable demand across its full customer base rather than a narrow, AI-only bump. Management has highlighted that revenue growth among non-AI-native customers also accelerated meaningfully in the most recent quarter, indicating that core cloud-migration and modernization spend remains healthy alongside AI workloads. On the client-win front, the company reported roughly 4,720 customers with annual recurring revenues of $100,000 or more as of quarter-end, up 23% year over year, alongside a record sequential revenue increase of $115 million. That breadth across large accounts and everyday cloud customers reduces reliance on any single buyer cohort.

Raised Guidance Signals Management ConfidenceDatadog's own forward guidance, issued alongside its second-quarter 2026 results on Aug. 6, 2026, offers a more grounded, fundamentals-based read on near-term prospects than the stock chart alone does. For the third quarter of 2026, the company guided revenues to a range of $1.135 billion to $1.145 billion and non-GAAP operating income of $260 million to $270 million. For the full year, management raised its outlook to revenues of $4.45 billion to $4.47 billion, non-GAAP operating income of $1.01 billion to $1.03 billion, and non-GAAP earnings per share of $2.50 to $2.54. Notably, this guidance was raised even after factoring in a usage reduction from the company's largest customer, a sign that demand elsewhere in the customer base is more than offsetting that single account's pullback.

The Zacks Consensus Estimate for DDOG's 2026 earnings currently stands at $2.52 per share, up 4.6% over the past 30 days, compared with earnings of $2.05 per share reported in 2025. That said, the customer-concentration episode is a useful reminder that usage-based revenues can still swing with individual account behavior, a nuance that argues for patience rather than aggressive buying at current price levels.

Valuation and Competitive LandscapeFrom a valuation perspective, DDOG appears overvalued, trading at a forward price-to-sales ratio of 15.73, well above the Zacks Internet – Software industry average of 3.98, and the company carries a Value Score of F.

Datadog competes against a mix of legacy technology giants and specialized observability players, including International Business Machines (IBM - Free Report) , Cisco Systems (CSCO - Free Report) and Dynatrace Software (DT - Free Report) . IBM brings scale and deep enterprise relationships, Cisco leverages its networking footprint, and Dynatrace competes directly on AI-driven automation. Against IBM's and Cisco's broader portfolios and Dynatrace's narrower observability focus, Datadog's platform breadth remains a differentiator, even as IBM, Cisco and Dynatrace intensify AI-native monitoring investment.

Investors may still hold despite the premium valuation because accelerating large-customer growth and raised full-year guidance suggest fundamentals are catching up to the multiple. Holding through the run is reasonable too, since the gains largely reflect improving operating leverage and cash-flow growth rather than sentiment.

DDOG’s Valuation Looks Steep
Image Source: Zacks Investment Research

ConclusionDatadog's fundamentals, broadening AI product adoption, resilient large-customer growth and an upwardly revised full-year outlook paint a picture of a durable, expanding platform rather than a stock riding a temporary wave. At the same time, a stretched valuation, a soft Value Score and lingering customer-concentration risk argue against adding aggressively after such a steep run. For current shareholders, the balance of evidence favors holding and letting the underlying business continue to compound its growth through disciplined execution; for prospective buyers watching from the sidelines, waiting patiently for a calmer, more attractive entry point remains the more prudent near-term path forward. Datadog stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Quanta's Q2 net income rose nearly 97% to $451.4 million as revenues climbed 41.1% to $9.56 billion.Electric revenues surged 43.6% to $7.84 billion, with operating income up 62.5% and margin reaching 11.5%.Quanta raised its 2026 outlook for net income to $1.74B-$1.82B and adjusted EBITDA to $4.09B-$4.21B. Quanta Services, Inc. (PWR - Free Report) delivered a sharp improvement in profitability in the second quarter of 2026, supported by robust demand, stronger execution and favorable operating leverage across its infrastructure businesses. Net income attributable to common stock increased to $451.4 million from $229.3 million a year earlier, representing growth of nearly 97%. Revenues climbed 41.1% year over year to $9.56 billion, while adjusted EBITDA advanced to about $1.07 billion from $668.8 million.

The improvement was broad-based. Electric segment revenues increased 43.6% year over year to $7.84 billion, while operating income surged 62.5% to $898.2 million. Its operating margin expanded to 11.5% from 10.1%, primarily reflecting higher demand and improved execution across electric and power-generation services. Underground and Infrastructure revenues rose 30.7% year over year to $1.72 billion, with operating income jumping 71.7% to $155.8 million and margin expanding to 9.1% from 6.9%. Higher revenues from acquired civil and mechanical businesses supported better fixed-cost absorption. Overall consolidated operating income increased 87.6% year over year to $694.8 million, with operating margin rising to 7.3% from 5.5%.

The outlook remains favorable. Quanta expects 2026 revenue growth of 20%-25% in Electric Grid & Gas Utility, 10%-15% in Power Generation & Energy Storage and 220%-240% in Technology & Load Centers. Large multi-year programs across utility, generation and technology markets should support further growth. Recent acquisitions should provide an additional boost, contributing an estimated $1.2-$1.4 billion of revenues and $120-$140 million of adjusted EBITDA in 2026. Quanta also raised its full-year outlook, projecting net income of $1.74-$1.82 billion and adjusted EBITDA of $4.09-$4.21 billion.

While weather, permitting, regulatory and supply-chain risks could affect execution, improving margins, strong end-market demand and acquisition contributions suggest Quanta’s profit momentum has room to continue, even if the second quarter’s near-doubling pace moderates.

Quanta vs. EMCOR & AECOM: Which Profit Engine Has More Momentum?Quanta is benefiting from strong infrastructure demand, improving execution and margin expansion, a backdrop that is also supporting growth opportunities for peers EMCOR Group, Inc. (EME - Free Report) and AECOM (ACM - Free Report) .

PWR’s second-quarter profit growth was particularly strong, with net income nearly doubling year over year as both of its operating segments delivered higher revenues and margins. EMCOR is showing a similar combination of revenue growth and operating leverage. In the second quarter of 2026, revenues increased 19.8% year over year to $5.15 billion, while operating income rose nearly 32% to $547.3 million and operating margin expanded 100 basis points to 10.6%. Second-quarter earnings advanced nearly 35% year over year to $9.06 per share. EMCOR’s record $17.14 billion of remaining performance obligations, up 44% year over year, also provides substantial visibility, with data centers, institutional projects, water and wastewater supporting demand.

AECOM’s underlying business also remains supported by strong project wins, although its near-term profitability picture is more mixed because of a $337 million construction-management project charge. Excluding that impact, adjusted EBITDA and EPS increased 5% and 11%, respectively, in the fiscal third quarter. Backlog rose 13% to an all-time high, supported by a 1.6x quarterly book-to-burn ratio, while management raised its adjusted EBITDA margin expectation to 17.4% from 17%. AECOM is also targeting a 20%+ margin exit rate by fiscal 2028, supported by higher utilization, technology efficiencies and growth across infrastructure, water, defense and data-center markets.

PWR’s Price Performance, Valuation & EstimatesPWR stock has rallied 44.9% in the year-to-date (YTD) period, outperforming the Zacks Engineering - R and D Services industry, the broader Construction sector and the S&P 500 index.

PWR YTD Share Price Performance

Image Source: Zacks Investment Research

From a valuation standpoint, PWR trades at a forward 12-month price-to-earnings ratio of 36.18X, well above the industry’s 25.07X, as shown below.

PWR Valuation

Image Source: Zacks Investment Research

PWR’s earnings estimates for 2026 and 2027 trended upward in the past 30 days to $16.37 per share and $18.96, respectively. The revised estimates for 2026 and 2027 imply year-over-year growth of 38.4% and 52.3%, respectively.

Image Source: Zacks Investment Research

PWR’s Zacks RankQuanta stock currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

powered by

Marvell (MRVL) relative long

Buy MRVL vs CRDO. Both are AI connectivity plays, but CRDO’s valuation is the bigger problem (much higher forward P/E). If the group de-rates, the higher-multiple name falls harder; MRVL should hold up better on a relative basis while still benefiting from AI infrastructure spend.

Key Risk: MRVL’s own results/guidance disappoint or its AI connectivity share gains stall, causing both names to fall together.

CRDO short

Sell short CRDO. Even with strong QoQ growth and higher GAAP gross margin, the market is punishing valuation: forward GAAP P/E ~45 vs sector ~29. The chart confirms momentum is bearish (below 50% Fib, 50/100-day EMAs, double-top-like reversal). Target ~$171 (61.8% Fib) and cover into any bounce.

Key Risk: AI/data-center demand stays so strong that guidance and margins re-accelerate enough to justify the premium multiple, forcing a valuation-driven squeeze higher.

Credo Technology Group stock continued its strong freefall, even after the company published encouraging financial results. CRDO dropped by over 9% in the premarket session, reaching its lowest level since July 30th. It has now remained deep inside a bear market after falling by nearly 40% from its highest level this year.

CRDO stock has slumped substantially in the past few months, moving from the year-to-date high of $308.30 to $192 today. This retreat happened even as the company continues growing, thanks to the soaring demand for its products and services. 

For starters, Credo Technology Group designs high-speed connectivity chips and cables that are mostly used in AI data centers, cloud infrastructure, and networking equipment. These products allow processors to communicate with each other quickly and efficiently. It competes with companies like Marvell Technology, Broadcom, and Astera Labs.

Credo released its earnings report on Tuesday, providing more insights about its business, which continued to see more demand. Its revenue jumped by 9.6% QoQ to $479 million. This increase was about 114.7% higher than what it made in the same period last year.

The company’s GAAP gross margin rose to 64.5%, while its GAAP net income rose to $129.4 million. While its net income rose sharply from $64 million in the same period last year, it was down from the $169 million it made in fourth quarter of fiscal year 2026. In a statement, Bill Brennan, the CEO said: 

“Our portfolio now spans connectivity from millimeters to kilometers, with solutions across optics and copper. As AI infrastructure scales, we will continue to provide an innovative suite of reliable and energy-efficient connectivity solutions for the data center.”

Credo expects that its revenue growth will continue as the data center buildup continues in the US and other countries. Indeed, most of its customers, including firms like Amazon, Microsoft, and SpaceX have all pledged to boost their data center spending. In total, data center spending is expected to be over $1 trillion this year. 

A major issue is that Credo is a highly overvalued, with the forward price-to-earnings ratio on a GAAP basis rising to 45, much higher than the technolgy sector median of 29. It is also significantly higher than other top companies like Dell and Nvidia. 

CRDO stock chart | Source: TradingView

Technicals suggest that the CRDO stock may have a strong downward trend in the near term. It has dropped from a high of $308.30 in June to the current $191. 

This retreat, which is in line with our prediction, happened after it formed a double-top-like pattern, a common bearish reversal pattern in technical analysis. It has now moved below the 50% Fibonacci Retracement level.

The stock has dived below the 50-day and 100-day Exponential Moving Average (EMA), a sign that bears are in control for now. This retreat may continue in the near term, potentially to the 61.8% retracement level at $171. 

It has been about a month since the last earnings report for Crescent Energy (CRGY - Free Report) . Shares have added about 24.7% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Crescent Energy due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

Crescent Q2 Earnings and Revenues Beat Estimates, Rise Y/YCrescent Energy Company reported second-quarter 2026 adjusted earnings of 69 cents per share, beating the Zacks Consensus Estimate of 59 cents by 16.95%. The bottom line also increased from the year-ago adjusted earnings of 43 cents. The outperformance was supported by strong production, higher oil realizations and continued operating efficiencies.

The Houston, TX-based oil and gas exploration and production company’s revenues of $1.4 billion beat the Zacks Consensus Estimate of $1.22 billion by 13.2%. The top line also increased sharply from $898 million in the year-ago quarter.

The quarter was marked by solid production, lower operating costs and record cash generation. Crescent produced 335 thousand barrels of oil equivalent per day (MBoe/d), which beat our consensus mark of 331 MBoe/d, while adjusted operating expenses were about 9% below the prior annual guidance midpoint.

Production Base Remains StrongTotal production averaged 335 MBoe/d, up from 263 MBoe/d in the year-ago quarter. Oil production increased to 140 thousand barrels per day (MBbls/d) from 108 MBbls/d. The figure was also above our consensus estimate of 136 MBbls/d.

Natural gas production rose to 715 million cubic feet per day (MMcf/d) from 644 MMcf/d, while NGL production increased to 76 MBbls/d from 48 MBbls/d. Natural gas production was 2.5% below our consensus estimate, while NGL production was 7.6% above our consensus estimate.

During the quarter, Crescent drilled 43 gross operated wells and brought 32 gross operated wells online. Capital expenditures, excluding acquisitions, totaled $284 million.

Crescent's Permian Momentum AcceleratesCrescent continued to make progress in the Permian, where it has moved from the stabilization phase following the acquisition into optimization.

Permian production totaled 124 MBoe/d, with oil accounting for 42% of volumes. Capital spending in the basin was $104 million. Crescent drilled nine gross wells and turned 12 gross wells in line during the quarter.

The company increased its Permian synergy target to $250-$300 million, roughly three times the original target of $90-$100 million. Approximately $190 million of annualized synergies have already been captured.

The gains are being driven by lower well and operating costs, improved workover and artificial-lift programs, better field operations and commercial optimization. Management expects a large portion of the updated synergy target to be captured as the company exits 2026 and moves into 2027.

Eagle Ford Operations Stay EfficientThe Eagle Ford business produced 169 MBoe/d, with oil representing 39% of volumes. Capital spending totaled $147 million. Crescent drilled 26 gross wells and brought 16 gross wells online during the quarter.

Operational efficiencies remain a key driver in the basin. Well costs have declined more than 25% since 2023, while workover and artificial-lift optimization are supporting base production. CRGY is also seeing encouraging results from the Austin Chalk, which could expand its economic drilling inventory.

Sees Further Cost Gains in UintaCRGY continued to improve drilling and completion efficiency in the Uinta Basin. Year-to-date drilling efficiency increased to roughly 1,600 feet per day from about 1,300 feet in the 2025 program. Completion efficiency increased to approximately 3,000 lateral feet per day from about 1,600 feet.

Simulfrac utilization reached 100% of gross wells turned in line, while drilling, completion and facilities costs declined to below $800 per foot from approximately $950 in the 2025 program.

These efficiencies are helping CRGY lower development costs and improve returns across its portfolio.

Revenue Mix Benefits From OilOil remained the largest revenue contributor at $1.23 billion, more than doubling from $602.5 million in the year-ago quarter. The figure was also above our consensus estimate by 18.9%.
Natural gas revenues declined to $33.8 million from $159 million, while NGL revenues increased to $129.4 million from $98.1 million. Midstream and other revenues totaled $5 million compared with $38.4 million a year earlier.  Natural gas revenues declined 61.2%, and NGL revenues declined 5.8%, while Midstream and other revenues declined 17% compared with our consensus estimates.

Average realized oil prices before derivative settlements were $96.61 per barrel, up significantly from $61.47 a year ago. Natural gas realizations, however, declined to 52 cents per Mcf from $2.71. NGL prices fell to $18.67 per barrel from $22.59.

The company's total realized price before derivative settlements increased to $45.63 per Boe from $35.96 a year ago.

Cash Flow & Balance SheetCRGY generated record adjusted EBITDAX of $798 million, up from $513.9 million in the year-ago quarter. Levered free cash flow reached a record $418 million, while operating cash flow totaled a record $707 million.

The company ended June with approximately $2.2 billion of liquidity. Total debt was approximately $5.17 billion, while net debt stood at $4.9 billion. Consolidated net leverage was 1.6 times.

CRGY further strengthened its balance sheet in July by redeeming the remaining $259 million of its 7.75% senior notes due 2029 at par. The transaction reduced interest expense and eliminated the company's nearest debt maturity. Pro forma liquidity following the redemption was expected to remain around $2 billion.

CRGY's board of directors declared a fixed quarterly dividend of 12 cents per share. As of June 30, CRGY had approximately $336 million remaining under its share-repurchase authorization.

Minerals Business Adds Cash FlowThe minerals and royalties business produced 13 MBoe/d, more than doubling from 6 MBoe/d in the prior-year quarter. Oil production from the business increased to 6 MBbls/d from 2 MBbls/d. Average realized prices before derivatives totaled $51.45 per Boe, compared with $34.95 a year earlier. Operating expenses were $4.26 per Boe compared with $5.40 in the prior-year period.  The business generated $49.4 million of adjusted EBITDAX during the quarter compared with $15.9 million a year earlier.

Raises 2026 OutlookThe company raised its 2026 total production guidance to 327-335 MBoe/d from 320-335 MBoe/d. The expected oil mix remains 40-42%. The company lowered adjusted operating expense guidance to $11-$12 per Boe from $11.50-$12.50. Production tax guidance was reduced to 5-6% of commodity revenues from 6-7%.

Crescent maintained its development capital guidance at $1.325-$1.425 billion, despite the higher production outlook. The combination of increased volumes and lower operating costs is expected to support additional free cash flow.

At current commodity prices, management expects to generate more than $1 billion of levered free cash flow in 2026. Crescent intends to use its financial flexibility to maintain the dividend, reduce debt and pursue accretive acquisitions or opportunistic share repurchases.

How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.

The consensus estimate has shifted 12.5% due to these changes.

VGM ScoresAt this time, Crescent Energy has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock was allocated a grade of A on the value side, putting it in the top 20% for value investors.

Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Crescent Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerCrescent Energy belongs to the Zacks Alternative Energy - Other industry. Another stock from the same industry, Expand Energy (EXE - Free Report) , has gained 7.4% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Expand Energy reported revenues of $1.83 billion in the last reported quarter, representing a year-over-year change of -9.5%. EPS of $1.33 for the same period compares with $1.10 a year ago.

Expand Energy is expected to post earnings of $1.41 per share for the current quarter, representing a year-over-year change of +45.4%. Over the last 30 days, the Zacks Consensus Estimate has changed -4.4%.

Expand Energy has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.

A month has gone by since the last earnings report for Viper Energy Partners (VNOM - Free Report) . Shares have added about 7.2% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is Viper Energy due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent catalysts for Viper Energy Inc. before we dive into how investors and analysts have reacted as of late.

VNOM Q2 Earnings Beat Estimates on Higher Output & Realized PricesViper reported second-quarter 2026 adjusted earnings of 76 cents per share, beating the Zacks Consensus Estimate of 73 cents per share by 4.1%. The bottom line increased from 41 cents per share a year ago.

Operating income of $677 million surpassed the consensus estimate of $639 million by 5.95%. The top line increased 128% from $297 million in the prior-year quarter.

The strong quarterly earnings are driven by higher production and improved realized oil prices. Average daily production reached 134,363 barrels of oil equivalent per day (Boe/d), up 69.5% from the prior-year quarter.

VNOM's Q2 Production SurgesTotal production was 12.23 million barrels of oil equivalent (MMBoe), up 69.5% from 7.22 MMBoe a year ago. Oil production increased 56.4% to 5.92 million barrels (MMBbl) from 3.79 MMBbl in the prior-year quarter.

Natural gas output rose 87% to 18.95 billion cubic feet (Bcf) from 10.13 Bcf reported a year earlier. Natural gas liquids production increased 81% to 3.15 MMBbl from 1.74 MMBbl recorded in the prior-year quarter.

Average daily oil volumes increased to 65,077 barrels per day (Bbl/d) from 41,615 Bbl/d.

Development activity remained strong across the asset base. During the quarter, 691 gross horizontal wells, normalized to 10,000-foot laterals, were turned to production on Viper's Permian Basin acreage. These represented 19.8 net wells on a 100% royalty-interest basis.

Viper's Realized Prices StrengthenThe average unhedged realized price was $53.82 per barrel of oil equivalent, 35.3% above the year-ago level of $39.78. The average realized oil price increased 54.4% to $98.28 per barrel from $63.62 recorded a year earlier.

Natural gas liquids realized price was $23.83 per barrel, up 15.1% from the year-ago figure of $20.70 per barrel. The average natural gas price declined to 5 cents per thousand cubic feet from 99 cents per thousand cubic feet. The combined realized price including hedges was $55.12 per barrel of oil equivalent, higher than the $41.03 per barrel of oil equivalent recorded in the prior-year quarter.

Hedged oil prices averaged $96.42 per barrel, while hedged natural gas prices were $1.48 per thousand cubic feet. The hedging benefit in natural gas more than offset the lower hedged oil realization compared with unhedged prices.

VNOM's Costs Rise With Expanded ScaleTotal costs and expenses were $249 million, up 53.7% from $162 million a year ago. Depreciation, depletion and amortization increased to $195 million from $124 million, while production and ad valorem taxes rose to $43 million from $21 million.

Cash operating costs were $4.17 per barrel of oil equivalent compared with $3.60 a year ago. The increase reflected production and ad valorem taxes of $3.52 per barrel, partly offset by a lower cash general and administrative cost of 65 cents per barrel.

Consolidated net income was $331 million, up from $84 million a year earlier. Net income attributable to Viper totaled $142 million compared with $37 million in the prior-year quarter.

Viper Maintains Cash FlowNet cash provided by operating activities was $487 million, up 183.1% from $172 million in the prior-year quarter. Consolidated adjusted earnings before income, taxes, depreciation and amortization (EBITDA) totaled $642 million, while cash available for distribution to Class A common stockholders was $262 million, or $1.37 per share.

VNOM’s Balance SheetAs of June 30, 2026, Viper’s cash was $77 million and total debt was $1.7 billion. Net debt totaled $1.6 billion. The company had roughly $2 billion of total liquidity, including about $1.9 billion available under its revolving credit facility.

The debt balance included $500 million of senior notes due 2030, $1.1 billion of senior notes due 2035 and $95 million borrowed under the revolving credit facility.

Viper Boosts Its Base DividendViper declared a second-quarter base dividend of 38 cents per Class A share and a variable dividend of 29 cents. The combined payout of 67 cents per share is payable on Aug. 20, 2026, to stockholders of record on Aug. 13.

The board approved a 32% increase in the annualized base dividend to $2 per Class A share, effective in the third quarter. Management expects the higher base payout to be protected down to roughly $30 per barrel WTI.

During the second quarter, VNOM repurchased about 3 million Class A shares for roughly $132 million at an average price of $44.34 per share. Total second-quarter capital returns were $197 million, representing 75% of cash available for distribution.

VNOM Raises Q3 & 2026 Production ViewThe company expects third-quarter 2026 production guidance to be between 133,500 Boe/d and 135,500 Boe/d. Oil production is expected in the range of 67,500-68,500 Bbl/d.

For 2026, Viper raised its production outlook to 132,500-135,000 Boe/d, including oil volumes in the range of 66,000-67,250 Bbl/d. The guidance incorporates the Riverbend acquisition, which closed July 1, 2026.

After giving effect to the acquisition, Viper had about 90,212 net royalty acres and 1,798 gross horizontal wells in active development as of July 1. The company identified 1,589 gross line-of-sight wells that may support future production growth.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in fresh estimates.

The consensus estimate has shifted 10.03% due to these changes.

VGM ScoresCurrently, Viper Energy has a strong Growth Score of A, a grade with the same score on the momentum front. However, the stock was allocated a score of F on the value side, putting it in the fifth quintile for value investors.

Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Viper Energy has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry PlayerViper Energy belongs to the Zacks Oil and Gas - Exploration and Production - United States industry. Another stock from the same industry, Range Resources (RRC - Free Report) , has gained 6.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2026.

Range Resources reported revenues of $795.3 million in the last reported quarter, representing a year-over-year change of +8.5%. EPS of $0.79 for the same period compares with $0.66 a year ago.

For the current quarter, Range Resources is expected to post earnings of $0.67 per share, indicating a change of +17.5% from the year-ago quarter. The Zacks Consensus Estimate has changed +5.6% over the last 30 days.

Range Resources has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.

Key Takeaways GitLab made Flex central to growth after 130 customers committed over $20M in its first six weeks.GTLB raised fiscal 2027 revenue guidance to $1.129B-$1.133B after Q2 revenues and EPS topped estimates.GitLab's net ARR rose 42%, retention hit 117%, and $500K-plus deals grew more than 150% year over year. GitLab Inc. (GTLB - Free Report) used its second-quarter fiscal 2027 earnings call to frame Flex as the centerpiece of its next growth phase, linking seat subscriptions with a broader consumption model for AI-era software development.

The quarter also gave management more confidence in the business. Revenues were $286.3 million, beating the Zacks Consensus Estimate of $273.3 million. Non-GAAP earnings were $0.24 per share, above the consensus mark of $0.18.

GTLB Makes Flex Central to GrowthCEO Bill Staples said that more than 130 customers committed over $20 million to Flex in its first six weeks, helping platform-wide paid consumption run rate, or CRR, rise above $40 million.

Staples also mentioned that the model lets customers redirect committed dollars among Premium and Ultimate seats, GitLab credits and eligible usage products without repeated contracting cycles.

CFO Jessica Ross added that management expects Flex to become increasingly important, while stressing that its near-term impact is primarily about revenue timing rather than customer commitments or cash economics.

GitLab Raises Outlook but Normalizes H2Ross raised fiscal 2027 revenue guidance to $1.129-$1.133 billion and projected non-GAAP earnings of $0.85-$0.87 per share.

For the fiscal third quarter, Ross guided revenues of $281-$283 million, non-GAAP operating income of $35 million-$37 million and diluted earnings of $0.19-$0.20 per share.

Ross cautioned that the second-half outlook assumes normalized bookings after unusually strong fiscal second-quarter execution. She said that guidance excludes Flex's potential accounting impact, with a maximum fiscal 2027 revenue-timing effect of approximately $13 million.

GTLB Sees Sales Execution ImproveStaples said that account executive capacity increased about 30% year over year while productivity per representative improved roughly 10%, contributing to GitLab's largest gross bookings quarter.

Ross said that net ARR grew 42% year over year, dollar-based net retention reached 117%, and the company recorded approximately 1,700 first orders, more than double the prior-year level.

Ross also highlighted better public-sector activity and a sharp increase in larger transactions, with deals of at least $500,000 growing more than 150% year over year.

GitLab Builds Around AI-Driven ConsumptionStaples described AI as a driver of more customers, more products and more consumption. Duo Agent Platform paid CRR grew about 50% sequentially.

Staples said that more than 2,200 organizations enabled GitLab Orbit indexing, while about 80% of customer query volume came from customers connecting Orbit to external agents.

In Q&A, a Canaccord Genuity analyst asked about GitLab's next-generation Git strategy. Staples said that the company is rearchitecting Git infrastructure for roughly 100 times the scale required by human workflows and is also advancing artifact management.

GTLB Q&A Tests Flex Economics and MarginsA BofA Securities analyst asked which metric best captures Flex progress. Staples pointed to paid CRR, which includes Flex commitments, credit commitments and paid on-demand usage, with a fiscal year-end target above $100 million.

A UBS analyst asked whether Flex customers were increasing commitments. Ross said that it was too early to quantify that, while Staples stated that Flex can create headroom for new products and reduce contraction tied to unused seat capacity.

A Baird analyst pressed on gross-margin pressure from AI. Ross said that SaaS represented 34% of revenues, while Staples said that recent margin changes were driven more by SaaS mix than early AI adoption.

GitLab Keeps Focus on ExecutionStaples closed with an emphasis on repeating the second-quarter's execution while expanding monetization beyond seats. His growth framework centers on new customers, additional products and consumption.

Ross maintained that the transition to Flex will create reporting noise, particularly in revenue recognition and current RPO, and committed to quantifying those effects each quarter.

GTLB's Zacks Signals Stay MixedGTLB carries a Zacks Rank #3 (Hold). Within the Zacks framework, the Style Scores complement the Rank and grade value, growth and momentum characteristics from A through F. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

GTLB's Growth Score of A is its strongest style signal, while the Value Score of F is the weakest. It has a Momentum Score of C and a VGM Score of C. Higher grades indicate better expected performance within the framework, but the Zacks Rank can change as earnings estimates are revised following the just-reported results.

Albany International Corp. (AIN) Discusses Outcome of Strategic Review and Amended CH-53K Contract for Structures Assembly Business September 2, 2026 8:30 AM EDT

Company Participants

Karen Blomquist
Gunnar Kleveland - President, CEO & Director
Sean Valashinas - VP, Controller, Acting CFO & Acting Principal Financial Officer & Chief Accounting Officer

Conference Call Participants

Chigusa Katoku - JPMorgan Chase & Co, Research Division
Jan-Frans Engelbrecht - Robert W. Baird & Co. Incorporated, Research Division

Presentation

Operator

Hello, everyone. Thank you for joining us, and welcome to the Albany International Investor Call to discuss the successful completion of its strategic review. [Operator Instructions]

I will now hand the conference over to Karen Blomquist, Director of Investor Relations. Karen, please go ahead.

Karen Blomquist

Good morning, and thank you for joining us today. As a reminder, for those listening on the call, please refer to our press release issued yesterday detailing the conclusion of our strategic review, along with our updated guidance. Contained in the text of the release is a notice regarding our forward-looking statements.

Today, we will make statements that are forward-looking and contain a number of risks and uncertainties, which could cause actual results to differ from those expressed or implied. For a full discussion of these risks and uncertainties, please refer to yesterday's press release as well as our SEC filings, including our 10-Q and our 10-K.

Now I will turn the call over to Gunnar Kleveland, our President and CEO. Gunnar?

Gunnar Kleveland
President, CEO & Director

Thank you, Karen. Good morning, and welcome, everyone. From the outset of this strategic review, our objective has been clear: to evaluate options through a balanced lens of maximizing long-term shareholder value and strategic positioning. That has meant applying financial discipline, aligning execution and strategy and ensuring that any outcome strengthen the business while delivering the best value for our

Joby Aviation (JOBY +1.77%), a developer of electric vertical take-off and landing (eVTOL) aircraft, is a divisive stock. The bulls expect its revenue to soar after the Federal Aviation Administration (FAA) fully certifies its first commercial flights. Still, the bears warn that its stock is overvalued, its share count is soaring, and that it's burning too much cash.

But is Joby actually in danger of running out of cash before it launches its first commercial flights? Let's see how much cash it's burning through, and if it needs to rein in its spending.

Image source: Getty Images.

To figure out how much cash Joby is burning through each quarter, we should add its net cash used in operating activities to its total capex to calculate its free cash flow (FCF) outflow. That figure has gradually risen above $200 million over the past year. However, its total liquidity -- which includes its cash, cash equivalents, and short-term investments -- more than doubled.

Period

Q2 2025

Q3 2025

Q4 2025

Q1 2026

Q2 2026

FCF Outflow

($118.7 million)

($153.2 million)

($167.0 million)

($222.4 million)

($201.8 million)

Total Liquidity

$991 million

$978 million

$1.41 billion

$2.47 billion

$2.30 billion

Data source: Joby Aviation.

Joby's cash burn increased as it accelerated its flight testing, manufacturing setup, and FAA certification activities. To offset that pressure, it raised more cash with a $576 million stock offering in the fourth quarter of 2025, followed by another $600 million stock offering and $690 million convertible debt offering in the first quarter of 2026.

As a result, Joby's share count rose 13% over the past 12 months. It's also increased its share count by 63% over the past five years, and that dilution will likely worsen as it burns more cash. Its total liabilities also surged 156% year over year to $985 million in its latest quarter.

Premium Feature

Moneyball Superscore

66/100

Today's Change

(

1.77

%) $

0.12

Current Price

$

6.81

On the bright side, Joby expects its cash runway to last for the next two to three years. That should give it enough time to obtain a full FAA certification for its S4 eVTOLs -- which it expects by the end of 2026 -- and to launch its first commercial flights.

Should investors be worried about Joby's cash? For now, investors shouldn't fret too much about Joby's cash usage. It's still firmly backed by Toyota, Delta, and Uber, and it's ahead of its closest peer -- Archer Aviation -- in the FAA certification process. They should only worry if Joby doesn't launch its first commercial flights before its cash runs out.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool recommends Delta Air Lines and Uber Technologies. The Motley Fool has a disclosure policy.

Key Takeaways APO's total AUM reached $1.05 trillion, up 25% year over year, reflecting robust capital formation and growth.Fee-generating AUM rose 34% to $858 billion, supporting recurring fee income and growth across the platform.Apollo's management plans to scale private equity, targeting total AUM of nearly $1.5 trillion by 2029. Apollo Global Management, Inc. (APO - Free Report) continues to expand its alternative investment platform, supported by strong organic asset under management (AUM) growth. The company’s AUM witnessed a compound annual growth rate (CAGR) of 19.6% from 2022 to 2025, with the growth trend continuing in the first half of 2026. Total AUM reached $1.05 trillion as of June 30, 2026, up 25% year over year, reflecting robust capital formation and continued growth in Asset Management and Retirement Services.

AUM Growth Trend

Image Source: Apollo Global Management, Inc.

Apollo’s ability to consistently attract capital remains a key driver of its AUM expansion. The company generated $298 billion of gross inflows over the last 12 months, including $220 billion from Asset Management and $78 billion from Retirement Services. Strong fundraising across institutional and global wealth channels, along with robust Retirement Services inflows, should continue to support growth across the platform.

As of June 30, 2026, fee-generating AUM increased 34% year over year to $858 billion, supporting Apollo's ability to generate recurring fee income. The increase was driven by strong capital formation across institutional and global wealth channels, continued fundraising across credit and equity strategies, and growth in Retirement Services.

Strategic acquisitions further strengthened Apollo’s long-term AUM growth prospects. In February 2026, Apollo entered into a strategic partnership with Schroders to develop next-generation wealth and retirement investment solutions for institutional and wealth clients across the U.K. and the U.S., creating opportunities to expand client reach and attract incremental assets. In September 2025, Apollo acquired Bridge Investment Group Holdings Inc. to broaden its real estate investment capabilities and enhance its ability to attract and retain institutional and wealth-management capital, supporting sustained AUM growth over the long haul. Though recent private-market concerns, including valuation opacity, liquidity constraints, and slower exit activity, could weigh on investor sentiment and near-term AUM growth, Apollo’s strong capital formation and expanding capabilities should support long-term AUM expansion.

Continued growth in fee-generating and perpetual capital AUM should strengthen recurring fee income and enhance earnings stability. Further, management’s plans to scale its private equity business could help total AUM approach $1.5 trillion by 2029, making sustained AUM growth a key driver of Apollo’s earnings trajectory. For 2026 and 2027, APO’s earnings are projected to rise 5.13% and 22.22%, respectively.

Earnings Estimate

Image Source: Zacks Investment Research

AUM Performance of APO’s PeersAmeriprise Financial (AMP - Free Report) has been witnessing solid growth in its AUM/assets under administration (AUA) balance. Over the five years (2020-2025), total AUM/AUA recorded a CAGR of 9%, supported by strong advisor recruitment, record advisor productivity, rising adoption of fee-based solutions and favorable asset flows. The momentum continued in the first half of 2026, with AUM/AUA reaching a record $1.81 trillion as of June 30, 2026.

Ameriprise’s robust AUM/AUA base supports long-term earnings growth by expanding its pool of fee-generating client assets across its diversified wealth management and asset management businesses.

Similarly, KKR & Co. (KKR - Free Report) has been witnessing strong growth in its AUM balance, driven primarily by robust fundraising and the continued expansion of its investment platform. Over the five years (2020-2025), total AUM recorded a CAGR of 24.2%, with the growth momentum continuing in the first half of 2026. As of June 30, 2026, total AUM was $796.5 billion, while fee-paying AUM reached $638.4 billion.

KKR’s expanding AUM and fee-paying AUM base supports long-term earnings growth by increasing the pool of capital that generates recurring management fees across its private equity, credit, real assets and other investment strategies.

APO Price Performance & Zacks RankThe company’s shares have gained 22.9% in the past six months compared with the industry’s 13.2% rise.

Price Performance

Image Source: Zacks Investment Research

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

Baird just reframed the biggest risk hanging over Reddit stock, and the market responded with its sharpest single-day move in months. Here is what two expiring AI licensing deals actually mean for the bull and bear cases.

This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Reddit (NYSE:RDDT | RDDT Price Prediction) stock is rallying Wednesday morning after a research note from Baird argued the market has already discounted the worst outcome for the company’s two AI data licensing agreements, both of which expire next year. That reframing lands on a name whose year has been defined by exactly this question.

Reddit shares are up 7% to $155.07. Meanwhile, Pinterest (NYSE:PINS) stock is essentially unmoved at $21.26, with no matching catalyst hitting the social peer today. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 0.5% to $765.19, showing today’s move in Reddit stock is a single-name repricing.

Reddit stock was down 37% year to date through Tuesday’s close. Today’s rally is a bounce in a name that has already been repriced hard heading into the session.

Baird Reframes the Renewal Overhang Baird analyst Colin Sebastian reiterated a Neutral rating and a $185 price target on Reddit stock. Sebastian wrote that the current share price reflects an outcome near the firm’s low-end scenario for the licensing renewals, with base and bull cases implying $10 and $20 per share of upside respectively. The framing shifts the debate from renewal downside to renewal asymmetry, since the downside case is already reflected in the share price.

The renewal question has been the overhang on Reddit stock all year. Reddit’s licensing agreements with two large AI partners both expire next year, and the company has said substantially all of its licensing revenue comes from those two agreements. That concentration sits at the center of the debate.

What Actually Gets Renegotiated The first agreement, with Alphabet‘s (NASDAQ:GOOGL) Google, dates to a February 2024 expansion giving Google access to Reddit’s Data API and is reported at $60 million a year. The OpenAI agreement followed in May 2024 and is reported at $70 million. OpenAI is privately held.

CEO Steve Huffman has indicated Reddit may seek higher fees on the renewals and shift from flat pricing to usage-based pricing. As of June the platform had 130 million daily active uniques and more than 26 billion posts and comments, and that archive grows every day. Huffman’s argument is that Reddit’s data keeps its value even after years of access, which supports the case for repricing higher on any renewal.

The bear case is straightforward. Agreements could renew at lower prices, cover fewer services, or fail to renew at all. Reddit’s most recent earnings call also flagged choppy search referral traffic and low visibility around AI overviews, both of which touch the same Google relationship that anchors licensing.

What to Watch Next Investors can watch for signs that management confirms renewal terms or timing on upcoming earnings updates. Even a partial renewal at usage-based pricing would recalibrate the debate quickly for Reddit stock.

Traders may want to check for follow-through above prior resistance before treating today’s move as a durable change in trend. Position sizing matters, since the licensing renewals are effectively binary events for a slice of Reddit’s revenue and non-advertising income remains concentrated in two customers. Investors should size their exposure for a range of possible renewal outcomes.

Contact [email protected] for any questions or corrections.

Holtec Nuclear Corporation recently filed for an initial public offering, planning to list on the Nasdaq stock exchange under the ticker HNUC. Here's why that IPO should worry Oklo (OKLO -0.39%) investors. Holtec has something Oklo lacks: revenue and earnings. That should make it a more appealing alternative for investors seeking exposure to the nuclear renaissance in the U.S.

Here's a look at this upcoming nuclear energy stock and how it differs from investing in Oklo.

Image source: The Motley Fool.

Introducing Holtec Nuclear Unlike Oklo, Holtec isn't a pre-commercial nuclear start-up. It has been around since 1986 and currently supplies nuclear equipment, manages spent nuclear fuel, and, like Oklo, develops small modular reactors (SMRs). Its core business of nuclear fuel and waste management funds its current operations. The company generated $165 million of revenue and $17.8 million of net income during the first three months of this year. While that was down from $177.7 million in revenue and $25.4 million in net income in the prior-year period, it's an already-functioning commercial business that supports its growth initiatives, including its SMR program.

Holtec is leading the restart of the 800-megawatt Palisades nuclear plant in Michigan, which shut down in 2022 after 50 years of operation. Additionally, it plans to build two SMR-300s at that site. It has already received $400 million from the U.S. Department of Energy to support its development plans at this site. Holtec aims to use its IPO proceeds to further its SMR program, expand its manufacturing capacity, and support its other growth initiatives. It has several planned SMR sites beyond Palisades, including at the decommissioned Oyster Creek nuclear power plant in New Jersey, where it plans to deploy four SMR-300s.

Premium Feature

Moneyball Superscore

62/100

Today's Change

(

-0.39

%) $

-0.15

Current Price

$

38.38

Why Holtec's IPO should worry Oklo investors Now let's contrast Holtec's business model with Oklo. The SMR start-up generated a mere $1.2 million in revenue during the second quarter. It didn't record any revenue during the first quarter or during the first six months of last year. Meanwhile, it has been piling up losses. Its net loss totaled $48.5 million in the second quarter and $81.6 million year-to-date. Oklo is a long way from generating meaningful revenue, as it likely won't book its first commercial power revenue before 2028.

Oklo is still in the early stages of building a scalable, vertically integrated nuclear platform from the ground up, including power, fuel, and isotopes. That's expensive. It spent $126.9 million on capex in the first half of this year and an additional $25.7 million on acquisitions to expand its capabilities. That's on top of the $65.5 million in cash it used in operating activities. The company does have some breathing room, as it ended the second quarter with $3 billion of cash and marketable securities after issuing $1.9 billion of stock through its at-the-market program. However, continued cash burn is something Oklo investors will need to monitor until it begins generating meaningful revenue to fund its operations and expansion initiatives.

New competition for investors Holtec's upcoming IPO doesn't diminish the investment thesis for Oklo. The SMR start-up is building an integrated platform from the ground up, which has high risks but high reward potential. However, it will add a new, lower-risk option for investors looking to play the nuclear renaissance. As a result, it could take a lot longer for Oklo's stock to recover from the more than 75% plunge from its peak.

Alphabet's (GOOGL.O) Google escaped a breakup of its advertising technology business on Wednesday, when a judge in Virginia rejected U.S. antitrust enforcers' bid to force a sale of Google's online advertising ​exchange.

While the ad exchange is a small part of Google's business, the ruling is the second powerful ‌symbolic victory against the U.S. Department of Justice in its efforts to force Google to sell assets to address illegal monopolies.

U.S. Judge Leonie Brinkema in Alexandria, Virginia, declined to make Google sell AdX, where publishers pay Google a 20% fee to sell ads in auctions that happen ​instantly when users load websites. She accepted most of the parties' proposed behavioral remedies.

The DOJ and a broad ​coalition of states sued Google in 2023 over its dominance in markets for advertising technology used ⁠by online publishers and websites.

In April 2025, Brinkema ruled that Google holds illegal monopolies on servers that host publisher ads and ​ad exchanges which sit between buyers and sellers. Google unlawfully locked publishers on its ad server into using its AdX, the ​judge found.

The tech giant's anticompetitive conduct "substantially harmed Google's publisher customers, the competitive process, and, ultimately, consumers of information on the open web," Brinkema said at the time.

At a trial last year on remedies in the case, the DOJ argued that Google cannot be trusted to run AdX, ​given its past behavior.

Google argued that a forced sale would be technically difficult and result in a long and painful ​transition that would hurt customers. The company also sought to show the DOJ's demand was different from Google's own previous offer to sell ‌AdX ⁠to end an EU antitrust investigation, which Reuters reported in 2024.

Ad Manager represented 4.1% of Google's overall revenue and 1.5% of operating profit in 2020, according to Wedbush research and analysis of court documents. More recent figures were redacted from court documents.

U.S. TECH CRACKDOWN IN JEOPARDY
The ruling is the third time in a row that a judge has rejected a bid by U.S. ​antitrust enforcers to break up ​Big Tech in a crackdown ⁠that started during President Donald Trump's first term. It is likely to fuel questions about whether courts are up to the task of checking the industry's unprecedented power over the U.S. ​economy.

A federal judge in Washington last year rejected the Federal Trade Commission's attempt to ​make Meta Platforms (META.O) ⁠sell off Instagram and WhatsApp, saying the agency failed to prove that Meta holds a monopoly in a social media landscape that has shifted drastically since the case was brought in 2020.

Likewise, another judge in Washington, who previously ruled that Google holds an illegal monopoly ⁠in ​online search, rejected the DOJ's bid to make the company sell its Chrome browser, ​citing rising competition from generative artificial intelligence companies such as OpenAI's ChatGPT.

U.S. antitrust cases against Amazon (AMZN.O) and Apple (AAPL.O), which involve massive smartphone and online retail ​markets, will not go to trial until 2027 at the earliest.

Public resistance is becoming another constraint on AI expansion Summary

Altman says modern facilities use far less water than feared

OpenAI backed microsoft MSFT CEO Sam Altman is pushing back against one of the most politically sensitive criticisms of the AI infrastructure boom, arguing that fears over data-center water consumption are exaggerated. But the broader investor problem may be harder to dismiss: public resistance to massive AI facilities is already creating permitting, regulatory and infrastructure risks that could complicate the industry's multibillion-dollar expansion.

“That has been a robust meme and difficult to disprove, but I don't think holds up to any scrutiny,” Altman said of concerns that modern data centers consume excessive amounts of water.

There is evidence supporting part of his argument. A Virginia government review found that most individual data-center buildings use roughly as much water as, or less than, an average large office building. But usage varies enormously: some facilities consumed more than 50 million gallons annually, while one used 243 million gallons in 2023.

Altman also argued that an individual ChatGPT request consumes very little water. He has previously estimated an average query uses about 0.000085 gallons, or roughly 0.32 milliliters.

The challenge is perception at the community level. A May Gallup poll found roughly seven in 10 Americans opposed new AI data centers in their area. Half of opponents cited excessive resource consumption, with 18% specifically mentioning water use.

That opposition matters as OpenAI, Microsoft, Meta, Alphabet and other AI leaders race to secure unprecedented amounts of computing capacity.

Investors TakeawayFor AI investors, the key issue is increasingly not whether demand for computing exists, but how quickly new capacity can actually be built.

Water availability, electricity costs, zoning battles and local opposition could slow data-center approvals and increase project costs. Virginia, the country's largest data-center hub, is already moving toward additional reporting and conservation requirements around water use.

Altman acknowledged that changing public sentiment ultimately requires demonstrating tangible benefits. “I think the right way to get people to like something is to deliver them value.”

For investors, that makes community acceptance another infrastructure constraint worth watching alongside chips, power and financing.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

Key Takeaways Microsoft will open its Saudi Arabia East region in November 2026 with three Azure availability zones.Microsoft added 31 datacenters and 1 gigawatt of capacity as Azure revenues surpassed $100 billion.Microsoft expects roughly $175 billion in 2026 capex and further growth in fiscal 2027. Microsoft (MSFT - Free Report) stock is back in focus after the company confirmed that its Saudi Arabia East datacenter region will become available to customers in November 2026, marking a fresh milestone in its global cloud and artificial intelligence buildout. Announced at the LEAP 2026 technology forum, the new region — located in the Eastern Province and comprising three Azure availability zones — will let government and private-sector organizations in the Kingdom run cloud and AI workloads locally, with an estimated $44 billion in projected economic activity from Microsoft's cloud technologies flowing to the Saudi economy between 2027 and 2030.

The launch extends Microsoft's global Azure footprint, which now spans more than 70 regions across 33 countries, and follows a similar pattern of aggressive AI infrastructure rollout seen through 2026.

This latest expansion is best understood against the backdrop of Microsoft's fourth-quarter fiscal 2026 results, reported on July 29. Revenues for the quarter rose 18% year over year to $90 billion, while Azure and other cloud services revenues grew 43%, pushing full-year Azure revenues past $100 billion for the first time. Microsoft Cloud revenues reached $59.3 billion in the quarter, up 27%, and commercial remaining performance obligations climbed 84% to $678 billion, underscoring the scale of contracted future demand. The company added 31 datacenters and roughly one gigawatt of capacity during the quarter, part of a plan to double overall capacity within two years.

Capital spending, the financial engine behind this expansion, totaled $41 billion for the quarter, with roughly two-thirds directed toward short-lived assets such as GPUs and CPUs. For 2026, Microsoft's capital expenditure outlook stands at approximately $175 billion, adjusted from an earlier $190 billion figure following an accounting change that extends the useful life of datacenters and office buildings from 15 to 25 years. Management has guided for capital expenditures to grow further in fiscal 2027, citing sustained demand signals across its cloud and AI portfolio, alongside continued double-digit revenue and operating income growth.

Taken together, the Saudi Arabia launch and the broader capacity build-out reinforce that Microsoft's AI datacenter strategy is no longer a future promise but an operating reality reshaping its revenue base.

Amazon and Alphabet Ramp Up AI Infrastructure SpendingMicrosoft's datacenter push mirrors similar moves by Amazon (AMZN - Free Report) and Alphabet (GOOGL - Free Report) , both racing to expand AI capacity. Amazon raised its 2026 capital expenditure guidance to roughly $220 billion, up from $200 billion, as AWS revenues grew 37% to $42.2 billion in the second quarter with a $496 billion backlog. Alphabet increased its 2026 capex outlook to $195-$205 billion from $180-$190 billion after Google Cloud revenues surged 82% and its backlog reached $514 billion. While Amazon and Alphabet outspend Microsoft in absolute capex terms, all three companies point to demand outpacing available capacity as the primary driver.

MSFT’s Share Price Performance, Valuation & EstimatesMSFT shares have returned 3.6% in the year-to-date (YTD) period against the Zacks Computer – Software industry’s decline of 3.7%. The Zacks Computer and Technology sector has appreciated 15.5% in the same time frame.

MSFT’s YTD Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, MSFT stock appears overvalued, trading at a forward 12-month price/earnings ratio of 24.78X, higher than the industry’s 23.13X. MSFT has a Value Score of D.

MSFT’s Valuation
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for MSFT’s fiscal 2026 earnings is pegged at $19.59 per share. The estimate indicates 9.14% year-over-year growth.

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

Nike (NKE +0.76%) stock is down 78% from its 2021 all-time high -- the steepest drop in the company's history. Sales remain under pressure, and there's no clear catalyst for a near-term rebound.

But margins are stabilizing -- a sign that things are moving in Nike's favor as it continues its turnaround. If profitability continues to firm up and sales eventually recover, this could set up a rare chance to buy the world's leading footwear and sports apparel brand at a value price.

Image source: The Motley Fool.

Stabilizing margins Nike's financials are messy. In fiscal 2026 (which ended in May), sales fell 1% year over year. A company with $46 billion in annual revenue isn't going to flip back to strong growth overnight. That's why investors should focus on early signals that the turnaround is working, such as gross margin performance.

In its latest reporting period (the fourth quarter of its fiscal 2026), Nike's cost of sales fell 16% year over year. That supported the gross margin, which improved to 49.2% from 40.3% in the year-ago quarter. It further drove a 21% increase in gross profit despite the decline in sales.

While that jump was tied to a tariff refund, the underlying trend is still improving. Excluding the refund, gross margin was 40.2% -- down just 10 basis points from the prior quarter and better than management's expectation for a 25- to 75-basis-point decline.

Management now expects gross margin to expand beginning in the first quarter of fiscal 2027 (ending in August). That's earlier than planned and points to structural cost improvements coming through in the supply chain.

Premium Feature

Moneyball Superscore

54/100

Today's Change

(

0.76

%) $

0.29

Current Price

$

38.41

Why the stock is a buy Management still expects revenue to fall in the low- to mid-single-digit range this quarter. But part of that reflects a deliberate shift: pulling back on discounts and leaning harder into full-price sales. That can weigh on near-term revenue momentum while strengthening margins and earnings power.

Also, fiscal 2026's headline decline masks momentum in key categories like running. That suggests the issue isn't the brand -- it's the product mix. Nike's running category has now posted five straight quarters of double-digit growth, helping drive market-share gains across Western Europe and North America.

Nike shares trade at 23 times fiscal 2027 earnings estimates. That looks fair, but it also understates how inexpensive the stock could be if earnings rebound. Analysts expect earnings to reach $2.71 billion by fiscal 2029, which implies a cheaper forward multiple of 14 on those future earnings.

Nike still has to execute to get there. But the push toward supply chain efficiency and higher full-price sales lays the groundwork for stronger long-term profitability. This won't be a smooth turnaround, but the stock is priced low enough that if Nike simply meets consensus estimates from here, patient investors could see some upside.

TOKYO and NEW YORK, Sept. 02, 2026 (GLOBE NEWSWIRE) -- Advasa Holdings, Inc. (Nasdaq: ADBT) (“ADVASA” or the “Company”), a fintech payment holding company providing Earned Wage Access (“EWA”) and next-generation financial infrastructure solutions through its Japanese operating subsidiary ADVASA Co., Ltd., today announced a significant upgrade to its existing ADVASA Visa card: it now features seamless payment functionality using USD Coin (“USDC”), alongside traditional fiat currency.

This new capability expands upon ADVASA’s robust payment infrastructure and its proprietary FUKUPE EWA platform. Designed to provide employees with instant, on-demand access to their earned wages before the standard payday, FUKUPE connects earned wage access to a flexible suite of disbursement channels—including bank accounts, supported prepaid cards, and digital wallets. Integrating USDC payments into the ADVASA Visa card represents a strategic evolution of the Company’s financial technology ecosystem, broadening the choice and flexibility available to its users.

ADVASA also believes that the continued expansion of digital payment options has the potential to contribute to greater financial inclusion. According to the World Bank’s Global Findex 2025, approximately 1.3 billion adults worldwide remain without a financial account, while approximately 900 million of those adults own a mobile phone.[1] The Company believes that expanding access to digital payment options, including the ability to use USDC alongside traditional fiat currency, may provide additional pathways to payment services for financially underserved populations, particularly in markets where access to traditional financial infrastructure remains limited.

Looking ahead, ADVASA also plans to explore potential opportunities in the real-world assets (“RWA”) sector. While changing the way people access and receive their earned wages remains central to ADVASA’s mission, the Company sees potential opportunities in RWA as a natural extension of its financial technology and payment infrastructure. The asset tokenization market has been projected to reach approximately $18.9 trillion by 2033, underscoring the potential scale of this emerging sector.[2] ADVASA intends to consider how its existing technologies and experience in expanding financial access could potentially be applied to this evolving market.

“The addition of USDC payment functionality to the ADVASA Visa card represents another step in expanding the payment capabilities available through our platform,” said Grady Ryther, Chief Executive Officer of Advasa Holdings, Inc. “As the digital payments landscape continues to evolve, we intend to further enhance our payment capabilities while also exploring potential opportunities in the RWA sector that may complement our broader financial technology ecosystem.”

About ADVASA
Advasa Holdings, Inc. (corporate website: https://adbt.io/) is a fintech payment holding company established in Delaware conducting operations through its Japanese subsidiary ADVASA Co., Ltd. headquartered in Tokyo, Japan (corporate website: https://www.advasa.co.jp/en/, Founder and Representative Director: Asamitsu Kosugi). ADVASA operates “FUKUPE,” an EWA platform that allows employees to receive wages they have already earned in real time. Leveraging a global patent strategy, the Company has established an intellectual property foundation across markets including Japan, the United States, South Korea, and Singapore. By integrating seamlessly with major HR and payroll systems as well as diverse payment infrastructures (such as bank transfers and e-wallets), ADVASA plans to expand from Japan into global markets—including Indonesia and the UAE where the need for financial inclusion is rapidly growing.

Forward-Looking Statements
Certain statements in this announcement are forward-looking statements. All statements other than statements of historical fact are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on the Company’s current expectations and projections about future events that the Company believes may affect its financial condition, results of operations, business strategy and financial needs.

These forward-looking statements include, but are not limited to, statements regarding the Company’s plans and expectations concerning its payment-related financial technology capabilities, digital payment infrastructure, the future utility of digital assets, the potential contribution of expanded digital payment functionality to financial inclusion, the Company’s consideration and exploration of potential opportunities involving RWA and RWA-related technologies and services, and the continued development and expansion of its products and services. Such forward-looking statements are subject to risks and uncertainties, including changes in laws and regulations applicable to digital assets, stablecoins, and RWA, technological and cybersecurity risks, market conditions, and general economic, industry and regulatory conditions in the United States and internationally. Investors can identify these forward-looking statements by words or phrases such as “may,” “could,” “will,” “should,” “would,” “expect,” “plan,” “aim,” “intend,” “anticipate,” “believe,” “estimate,” “predict,” “likely,” “potential,” “project,” or “continue,” or the negative of these terms or other comparable terminology. The Company undertakes no obligation to publicly update or revise any forward-looking statements to reflect subsequent events or circumstances, except as required by law.

Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot guarantee that such expectations will prove correct. Investors are encouraged to review the risks, uncertainties and other factors that may affect the Company’s future results identified in the Company’s registration statement on Form S-1, as amended (File No. 333-292013), declared effective by the SEC on August 11, 2026, the Company’s Form 10-Q for the quarter ended June 30, 2026 filed with the SEC on August 12, 2026, and subsequent disclosure documents the Company may file with the SEC. The Company claims the protection of the Safe Harbor contained in the Private Securities Litigation Reform Act of 1995 for forward-looking statements.

Contacts:
ADVASA Investor Relations Email: [email protected]
Website: https://adbt.io/
X: @AdvasaHoldings (https://x.com/AdvasaHoldings)

References
[1] World Bank, Global Findex 2025. Available at: https://digitalfinance.worldbank.org/
[2] Ripple and Boston Consulting Group (BCG), Approaching the Tokenization Tipping Point, April 2025. Available at: https://media-publications.bcg.com/Tokenized-Assets.pdf

Key Takeaways JPMorgan's Kinexys has processed more than $4 trillion in transactions since inception.EBANX cut internal fund transfers from more than 24 hours to minutes using Kinexys.JPMorgan's Payments revenue hit a record $10.4 billion in first-half 2026, up 12% year over year. JPMorgan’s (JPM - Free Report) blockchain platform, Kinexys, continues to gain commercial traction, strengthening the company’s push to modernize institutional payments. Growing adoption could complement the bank’s scale in treasury services and support further expansion of its Payments business.

Recently, global payments platform EBANX adopted the Kinexys Blockchain Deposit Account network for internal fund transfers across its global operations. The solution reduced transactions that previously took more than 24 hours to minutes. Faster settlement, combined with greater liquidity visibility and round-the-clock transaction capabilities, can help multinational businesses manage working capital more efficiently.

The development underscores Kinexys’ increasing real-world utility. The platform has processed more than $4 trillion in transactions since inception, indicating that JPMorgan’s blockchain initiatives are moving beyond experimentation toward broader commercial deployment.

For JPMorgan, greater Kinexys adoption could have benefits beyond transaction volumes. Integrating blockchain-based settlement with the company’s extensive payments, cash-management and banking relationships will likely improve client retention and create additional cross-selling opportunities. The platform could also differentiate JPMorgan as companies increasingly demand faster, always-on and more efficient global treasury infrastructure.

This momentum complements an already strong Payments franchise, which generated record revenues of $10.4 billion in the first half of 2026, up 12% year over year. While Kinexys remains small relative to JPMorgan’s overall operations, continued adoption among large institutional clients could reinforce its competitive moat. By combining blockchain capabilities with its global banking network and massive client base, JPMorgan appears well-positioned to convert technological innovation into deeper client relationships and incremental payments growth over time.

What are JPM’s Peers Doing to Expand Payments Business?Two close peers of JPMorgan are Bank of America (BAC - Free Report) and Citigroup (C - Free Report) .

Bank of America is expanding its Payments business through cross-border real-time payments, CashPro enhancements, APIs and AI-driven treasury solutions. Bank of America’s new platform connects global instant-payment networks, offering faster settlement, payment tracking and lower costs, while rising digital adoption supports deeper corporate client relationships and treasury-service revenues.

Citigroup is expanding Payments through 24/7 USD clearing, instant cross-border payments, APIs and Citi Token Services. By integrating blockchain-based tokenized deposits with real-time payment rails and expanding Citi Payments Express across markets, Citigroup aims to deepen corporate relationships, improve liquidity management and capture growing demand for always-on payments.

JPMorgan’s Price Performance, Valuation and EstimatesJPM’s shares have gained 18% over the past three months.

Three-Month Price Performance
 

Image Source: Zacks Investment Research

From a valuation standpoint, JPMorgan trades at a 12-month trailing price-to-tangible book (P/TB) of 3.31X, above the industry average. 

P/TB TTM
 

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for JPMorgan's 2026 earnings suggests a 22.6% rise on a year-over-year basis, while 2027 earnings are expected to grow at a rate of 0.3%. In the past month, earnings estimates for 2026 have remained unchanged at $24.93. For 2027, estimates have moved upward to $25.02.

Earnings Estimates
 

Image Source: Zacks Investment Research

JPMorgan currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways J&J faces pressure from Stelara's LOE, upcoming Opsumit and Simponi expiries, and MedTech weakness.Abiomed sales fell 2% as physicians reassessed Impella use after a U.K. clinical trial raised concerns.J&J targets about $100 billion in 2026 revenues, with double-digit growth in sight by decade's end. Johnson & Johnson (JNJ - Free Report) continues to deliver solid operating performance, but its growth story faces several important challenges. The company is navigating the impact of major patent expirations, including the loss of exclusivity (LOE) for Stelara, while upcoming LOEs could add further pressure to its Innovative Medicine business. At the same time, weakness in parts of its MedTech portfolio, pricing pressure in key markets and lingering talc-related litigation remain concerns for investors. Let’s examine these key headwinds and assess whether the healthcare giant is well-positioned to overcome them and sustain its long-term growth trajectory.

Stelara LOE & Upcoming Patent Expiries Weigh on J&J’s GrowthThe biggest long-term challenge for J&J is the loss of exclusivity for some of its key drugs.

J&J lost U.S. patent exclusivity of Stelara in 2025. Stelara was a key top-line driver for J&J, accounting for around 18% of J&J’s Innovative Medicine unit’s sales in 2024, before it lost patent exclusivity in 2025.

Several biosimilar versions of Stelara were launched in the United States in 2025 as the drug lost patent exclusivity. According to patent settlements and license agreements, Amgen (AMGN - Free Report) , Teva Pharmaceutical Industries (TEVA - Free Report) , Alvotech, Samsung Bioepis/Sandoz and some other companies launched Stelara biosimilars.

Stelara’s LOE negatively impacted the Innovative Medicines segment’s growth by 10.4% in 2025 and 8.4% in the first half of 2026.

In addition, J&J expects generic competition for both Simponi and Opsumit to weigh on sales in 2026 as the drugs face loss of patent protection. Biosimilars for Simponi entered the European market in the second quarter of 2026, with a potential U.S. entrant later in the year. Generic competition for Opsumit entered the U.S. market late in the second quarter, which is expected to pressure sales in the second half.

Abiomed Weakness & China Headwinds Hurt J&J’s MedTech GrowthSales in J&J's Abiomed business under the MedTech segment declined 2% in the second quarter as procedure volumes slowed following changes in Impella usage after a recent U.K. clinical trial raised questions about the device’s benefit in certain high-risk procedures, prompting physicians to reassess patient selection and adopt a more cautious approach to using the device.

Reflecting these challenges, J&J tempered its outlook for Abiomed, now expecting only modest growth in the second half of 2026 rather than the stronger rebound it had previously anticipated. The impact of the U.K. study is expected to linger and hurt Abiomed’s growth until the PROTECT IV data is presented in 2027. PROTECT IV is a large clinical trial of the company’s Impella device in high-risk percutaneous coronary intervention.

Sales in J&J’s MedTech business are facing continued headwinds in China. Sales in China are being hurt by the impact of the volume-based procurement (VBP) program. VBP is a government-driven cost containment effort in China. J&J expects continued impacts from VBP issues in China in 2026, mainly in the second half. Competitive pressure is also hurting sales growth in some MedTech businesses.

J&J’s Talc Litigation Nears Resolution but Remains a Key Investor ConcernJ&J faces approximately 76,000 lawsuits for its talc-based products, primarily baby powders. The lawsuits allege that its talc products contain asbestos, which caused many women to develop ovarian cancer. While the company has taken steps to resolve many of these matters, litigation has remained an overhang for a long time that has resulted in high costs, negative headlines and weighed on investor sentiment.

Though the issue is close to resolution, it has not yet been fully resolved. In July 2026, J&J agreed to a $5.5 billion settlement covering nearly all its remaining talc litigation. The agreement requires participation by plaintiff firms representing at least 95% of the remaining claims before it becomes effective. J&J expects the first payment of up to $3 billion in 2027, with additional payments beginning in 2028.

Can J&J Navigate the Challenges?J&J has delivered consistent earnings and sales growth, supported by strong growth of oncology drugs and newer medicines.

The company expects 2026 to be a year of accelerated growth. The company is confident that it can achieve its target of generating around $100 billion in revenues in 2026. It expects sales to continue to improve in 2027, with a “line of sight” to double-digit growth by the end of the decade. J&J believes that it is already achieving this growth. Though J&J’s total revenues are currently rising in a mid-single-digit range, excluding Stelara, J&J’s top line grew in a double-digit range in both the first and second quarters of 2026.

J&J also expects its MedTech business to perform better in the second half of the year than it did in the first half, driven by strength in Vision, Orthopedics, Surgery and better performance in Cardiovascular. While the Abiomed softness creates a new overhang, it is only 2% of sales, and J&J has various other top-line drivers to compensate.

Despite headwinds like the Stelara patent cliff, the upcoming LOE of key drugs Opsumit and Simponi, and softness in MedTech, J&J looks quite confident that it will be able to navigate these challenges.

JNJ’s Price Performance, Valuation and EstimatesJ&J’s shares have outperformed the industry so far this year. The stock has risen 31.1% year to date compared with 13.0% appreciation of the industry. 

Image Source: Zacks Investment Research

From a valuation standpoint, J&J is expensive. Going by the price/earnings ratio, the company’s shares currently trade at 21.86 forward earnings, higher than 18.55 for the industry. The stock is also trading above its five-year mean of 15.65.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2026 earnings has risen from $11.58 per share to $11.59 per share over the past 60 days, while that for 2027 earnings has gone up from $12.65 per share to $12.80 over the same time frame.

Image Source: Zacks Investment Research

J&J has a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.