Equifax Inc. (EFX) Q2 2026 Earnings Call July 21, 2026 8:30 AM EDT
Company Participants
Trevor Burns - Senior Vice President of Corporate Investor Relations
Mark Begor - CEO & Director
John Gamble - Executive VP, CFO & COO
Conference Call Participants
Jeffrey Meuler - Robert W. Baird & Co. Incorporated, Research Division
Toni Kaplan - Morgan Stanley, Research Division
Alexander EM Hess - JPMorgan Chase & Co, Research Division
Shlomo Rosenbaum - Stifel, Nicolaus & Company, Incorporated, Research Division
Manav Patnaik - Barclays Bank PLC, Research Division
Faiza Alwy - Deutsche Bank AG, Research Division
Andrew Nicholas - William Blair & Company L.L.C., Research Division
Ashish Sabadra - RBC Capital Markets, Research Division
Jason Haas - Wells Fargo Securities, LLC, Research Division
Kyle Peterson - Needham & Company, LLC, Research Division
Kevin McVeigh - UBS Investment Bank, Research Division
Surinder Thind - Jefferies LLC, Research Division
Curtis Nagle - BofA Securities, Research Division
Rayna Kumar - Oppenheimer & Co. Inc., Research Division
Kelsey Zhu - Autonomous Research US LP
Scott Wurtzel - Wolfe Research, LLC
Simon Alistair Clinch - Rothschild & Co Redburn, Research Division
Ryan Griffin - BMO Capital Markets Equity Research
Keen Fai Tong - Goldman Sachs Group, Inc., Research Division
Presentation
Operator
Greetings, and welcome to the Equifax Second Quarter 2026 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.
I'd now like to turn the call over to your host, Mr. Trevor Burns, Senior Vice President, Investor Relations. Thank you, sir. Please go ahead.
Trevor Burns
Senior Vice President of Corporate Investor Relations
Thanks, and good morning. Welcome to today's conference call. I'm Trevor Burns. With me today are Mark Begor, Chief Executive Officer; and John Gamble, Chief Financial Officer. Today's call is being recorded. An archive of the recording will be available later today in the IR Calendar section of the News and Events tab at our Investor Relations website. During the call, we will be making reference to certain
Kate Moore, Chief Investment Officer at Citi Wealth, delivered a two-part message on CNBC on Tuesday, July 21: stay in the market, and pay attention to cybersecurity. “We are definitely game on. Yes, fully invested. And we have been fully invested on the equity side,“ she said, framing the market’s current rally as earnings-driven rather than valuation-led.
Why Citi’s CIO Says Sitting in Cash Is the Wrong Move Her core argument is that earnings growth is driving the market forward: “Earnings have been powering the equity market higher. It’s not been multiples. In fact, there’s been multiple contractions across every major market, more pronounced in the US and emerging markets areas more tied to the AI and tech side.” Moore noted that a significant amount of cash remains on the sidelines despite asset appreciation, and that pullback windows in spring 2026 lasted only days, forcing portfolio managers to act quickly.
Real GDP growth registered at 2.1% annualized as of the Q4 2025 results, and Core PCE reached 130.08 in May 2026, up 0.3% month over month. Moore added: “While fundamentals remain really strong and the macro environment is really supportive… I think these drawdowns are going to be short… They’re in and fast because nothing has really changed besides a little bit of sentiment.“
“Infinite AI Agents” Are Expanding the Cybersecurity Threat Moore’s second point was that cybersecurity has massive tailwinds that most investors aren’t fully appreciating. “We’re not talking about a single kind of cyber attack or a series of people that could be engaging in it, but almost infinite AI agents across a huge attack surface that could be taking down people’s data, ruining the operational situation for many companies,” she said, arguing security budgets remain too small a share of enterprise tech spend.
Here are some cybersecurity leaders that are likely to benefit:
CrowdStrike’s ARR Reaches $5.5 Billion CrowdStrike (NASDAQ:CRWD | CRWD Price Prediction) posted Q1 FY27 revenue of $1.385 billion, up 25.6% YoY, with non-GAAP EPS of $1.10 beating the $1.0675 consensus. Ending ARR reached $5.51 billion, and net new ARR of $255.8 million grew 32% YoY. CEO George Kurtz called it “the Mythos moment.” The stock’s forward valuation is rich at 164x forward earnings.
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Palo Alto’s Next-Generation Security ARR Climbs 60% Palo Alto Networks (NASDAQ:PANW) delivered Q3 FY26 revenue of $3.00 billion, up 31.1% YoY, with non-GAAP EPS of $0.85 versus $0.80 expected. Next-Generation Security ARR hit $8.10 billion, growing 60% YoY. CEO Nikesh Arora said, “The latest advancements at the AI frontier have increased the level of urgency around cybersecurity, and redefined the shape of the industry for the coming years.” Shares are up 89.28% year to date through July 20, 2026.
Zscaler’s AI Usage Jumps 91% as Its Stock Falls 33% Zscaler (NASDAQ:ZS) reported Q3 FY26 revenue of $850.48 million, up 25.4% YoY, and non-GAAP EPS of $1.08, extending its EPS beat streak to nine consecutive quarters. CEO Jay Chaudhry pointed to a 91% YoY growth in enterprise AI usage across 3,400+ applications. However, the stock is down 33.39% YTD through July 20.
SentinelOne Says the AI Era Requires “Machine Speed Defense” SentinelOne (NYSE:S) posted Q1 FY27 ARR of $1.16 billion, up 23% YoY, with record net new ARR of $44 million growing 55% YoY. CEO Tomer Weingarten stated, “securing the AI era requires machine speed defense which only truly modern infrastructure can deliver.”
Cloudflare Calls AI Its “Biggest Tailwind” Ever Cloudflare (NYSE:NET) delivered Q1 2026 revenue of $639.75 million, up 33.5% YoY, with current RPO growth of 34%. CEO Matthew Prince said AI is “shaping up to be the biggest tailwind we’ve ever seen in Cloudflare’s history.” Analysts’ average price target sits at $254.36, suggesting analysts see downside with the stock currently trading at $271.43.
What to Watch Next Moore described the behavioral trap facing investors: “Many groups of investors, the individual investors, and anyone who relies on models, have been taught over and over again at increasing speed over the last five and ten years, that the longer you sit on the sidelines, the fewer your opportunities to buy on pullbacks.“ Palo Alto Networks’ NGS ARR grew 60%, while CrowdStrike guided for FY27 revenue of $5.914 billion to $5.959 billion.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Palo Alto Networks didn't make the cut. Grab the names FREE today.
The electric vertical takeoff and landing (eVTOL) industry is no longer just a collection of futuristic concepts. Several companies now have aircraft in advanced testing, regulators are actively working toward certification, and commercial launches are beginning to take shape.
Of course, that doesn't mean every eVTOL stock deserves a place in your portfolio. But if I had to choose one today, I'd buy Joby Aviation (JOBY +1.81%) and avoid Archer Aviation (ACHR 0.47%).
Buy: Joby Aviation Joby has consistently stayed ahead of nearly every competitor in the industry. To date, the company has completed more than 50,000 miles of test flights, making it one of the most tested eVTOL developers in the world. It's also steadily progressing through the Federal Aviation Administration's (FAA) certification process, which remains the biggest hurdle before commercial service can begin.
Earlier this year, Joby began flying its first FAA-conforming production aircraft. This is a big deal because it's built to the same standards regulators expect for commercial certification. Joby isn't just building aircraft at this point. It's actively building an operating business.
The company currently has partnerships with Delta Air Lines to launch airport shuttle services in New York and Los Angeles and with Virgin Atlantic to bring similar services to the United Kingdom. It also acquired Uber Elevate several years ago, giving it an established software platform and customer relationships that should help commercial operations.
International expansion is underway, too. Joby has completed demonstration flights in Japan and the United Arab Emirates and expects Dubai to become one of its first commercial markets.
A healthy balance sheet At the end of Q1, 2026, Joby reported approximately $1.1 billion in cash, cash equivalents, and investments. That gives management a lot of flexibility as it works toward commercialization without immediately returning to capital markets.
Yes, it's true that Joby is still losing money. Revenue remains minimal, and profitability is likely several years away. But among publicly traded eVTOL companies, Joby appears to have the strongest combination of technology, certification progress, strategic partnerships, and financial resources.
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Avoid: Archer Aviation Archer has made meaningful progress over the past year, but there are still some pretty serious execution risks. Indeed, the company has generated excitement through high-profile partnerships with United Airlines, Stellantis, and the U.S. military. Its Midnight aircraft continues to advance through flight testing, too.
Those are legitimate strengths, but the problem is that much of Archer's valuation already assumes successful execution. And like Joby, Archer has yet to generate meaningful commercial revenue. Its business still depends on obtaining FAA certification, scaling manufacturing, building charging infrastructure, training pilots, and convincing customers to adopt an entirely new transportation model. That's a long list of things that all have to go right.
Financially, Archer remains well funded, reporting roughly $1.7 billion in cash and cash equivalents. But scaling an aerospace manufacturing business isn't cheap. Production delays, certification setbacks, or slower-than-expected customer adoption could force additional fundraising and dilute existing shareholders.
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There's also another concern. Unlike Joby, which intends to operate much of its own air taxi network, Archer relies more heavily on partners to commercialize its aircraft. That model could ultimately work, but it also gives Archer less direct control over customer relationships and long-term operating economics.
The better long-term investment The eVTOL market has enormous potential. Morgan Stanley has estimated the industry could eventually exceed $1 trillion as urban air mobility expands into passenger transportation, cargo delivery, defense, and emergency services.
Image source: Getty Images.
But don't confuse a promising industry with guaranteed winners. Joby appears to have established an early lead where it matters most: certification progress, operational testing, international expansion, and commercial partnerships. It also has one of the strongest balance sheets in the sector, reducing the likelihood of near-term shareholder dilution.
Archer could certainly become a successful company over time. If management executes flawlessly, today's valuation may eventually prove justified. But investing isn't about identifying companies that can succeed. It's about identifying companies with the highest probability of success. Today, Joby checks more of those boxes.
If you're looking for exposure to the growing eVTOL market, I'd buy Joby Aviation and leave Archer Aviation on the watch list until it proves it can turn promising technology into a sustainable business.
WHY: Rosen Law Firm, a global investor rights law firm, continues to investigate potential securities claims on behalf of shareholders of PennyMac Financial Services, Inc. (NYSE: PFSI) resulting from allegations that PennyMac may have issued materially misleading business information to the investing public.
SO WHAT: If you purchased PennyMac securities you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement. The Rosen Law Firm is preparing a class action seeking recovery of investor losses.
WHAT TO DO NEXT: To join the prospective class action, go to https://rosenlegal.com/submit-form/?case_id=51887 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
WHAT IS THIS ABOUT: On January 29, 2026, PennyMac filed a Current Report with the Securities and Exchange Commission on Form 8-K announcing PennyMac’s fourth quarter and full-year 2025 financial results. The report stated that PennyMac’s “servicing segment pretax income was $37.3 million, down from $157.4 million in the prior quarter and $87.3 million in the fourth quarter of 2024,” as well as “[retax income excluding valuation-related items was $47.8 million, down 70 percent from the prior quarter driven primarily by increased realization of mortgage servicing rights (MSR) cash flows as lower mortgage rates drove higher prepayment activity.”
On this news, PennyMac’s stock price fell $49.78 per share, or 33.3%, to close at $99.92 per share on January 30, 2026.
WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually litigate securities class actions. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs’ Bar. Many of the firm’s attorneys have been recognized by Lawdragon and Super Lawyers.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.
Attorney Advertising. Prior results do not guarantee a similar outcome.
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The Rosen Law Firm, P.A.
275 Madison Avenue, 40th Floor
New York, NY 10016
Tel: (212) 686-1060
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Key Takeaways Knight-Swift will report Q2 results on July 22, with EPS estimated to rise 61.9% year over year. Truckload, Logistics and LTL revenues are expected to grow as freight demand and utilization improve. Higher costs, Middle East tensions and supply-chain disruptions may weigh on June-quarter results. Knight-Swift Transportation Holdings Inc. (KNX - Free Report) is scheduled to report second-quarter 2026 results on July 22, after market close.
The Zacks Consensus Estimate for KNX’s second-quarter 2026 earnings has been revised upward by 4.3% over the past 60 days to 49 cents per share. The consensus mark for earnings implies a 61.9% gain from the year-ago actuals. The Zacks Consensus Estimate for KNX's second-quarter 2026 revenues is pegged at $2.01 billion, indicating a 7.95% rise year over year.
Knight-Swift has a discouraging earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate once in the trailing four quarters (met once and missed the mark twice in the remaining quarters), delivering an average miss of 6.69%.
Let’s see how things have shaped up for Knight-Swift this earnings season.
Factors Likely to Have Influenced KNX’s Q2 PerformanceWe expect KNX’s performance in the to-be-reported quarter to have been bolstered by improvement in the freight market demand. Our estimate for Truckload revenues is pegged at $1.25 billion, indicating a 3% rise on a year- over-year basis and for Logistics revenues, we expect an increase of 4% year over year to $133.4 million from the second-quarter 2025 reported figure.
The uptick in asset utilization and profitability as market conditions improve, along with capacity discipline, is expected to have boosted the company’s overall performance in the June-end quarter. Our estimate for Less-Than-Truckload revenues is pegged at $405.3 million, indicating a 4.8% increase from the second-quarter 2025 reported figure.
On the contrary, rising operating expenses, along with ongoing geopolitical tensions in the Middle East and supply-chain disruptions, are likely to have adversely affected KNX’s performance in the June-end quarter.
What Our Model Says About KNXOur proven model predicts an earnings beat for Knight-Swift this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
KNX has an Earnings ESP of +0.66% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Highlights of Q1KNX's first-quarter 2026 adjusted earnings of 9 cents per share matched the Zacks Consensus Estimate but declined 67.9% year over year. The reported figure came below the guided range of 28-32 cents.
Total revenues of $1.85 million almost came in line with the Zacks Consensus Estimate and grew 1.4% year over year. Revenues, excluding Truckload and LTL fuel surcharge, grew 0.3% year over year to $1.63 billion.
Other Stocks to ConsiderHere are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
CSX Corporation (CSX - Free Report) has an Earnings ESP of +0.95% and a Zacks Rank #2 at present. CSX is scheduled to report second-quarter 2026 results on July 22, after market close.
The Zacks Consensus Estimate for the second-quarter 2026 earnings has been revised upward by 6.38% over the past 60 days to 50 cents per share. The Zacks Consensus Estimate for revenues is pegged at $3.82 billion, indicating a 6.90% increase from the second-quarter 2025 actuals.
Schneider National (SNDR - Free Report) has an Earnings ESP of +1.50% and a Zacks Rank #1 at present. SNDR is scheduled to report second-quarter 2026 earnings on July 30.
The Zacks Consensus Estimate for second-quarter 2026 earnings has remained flat at 22 cents over the past 60 days. SNDR’s earnings beat the Zacks Consensus Estimate in one of the preceding four quarters (missing the mark twice and met the mark once in the remaining three quarters). The average miss is 17.97%.
Arm’s run in 2026 has been one of the sharpest re-ratings in large-cap tech. Shares of Arm Holdings (NASDAQ:ARM | ARM Price Prediction) trade at $271.49 as of July 20, 2026, up 144.43% year to date on the back of a data center royalty explosion and the launch of Arm’s first production silicon.
Our 24/7 Wall St. price target for Arm is $301.87, implying 11.19% upside over the next twelve months. The action is buy, with a confidence level of 90%.
24/7 Wall St. Price Target Summary Metric Value Current Price $271.49 24/7 Wall St. Price Target $301.87 Upside 11.19% Recommendation BUY Confidence Level 90% A Volatile Path to a 144% YTD Gain Arm bottomed near $105.78 in January before ripping to a June high of $396.34 and pulling back to today’s level. The stock is off 17.38% over the past week and 36.21% over the past month, sitting 33% below its 52-week high of $452.70.
In Q4 FY2026, Arm posted revenue of $1.49 billion, up 20.06% year over year, with non-GAAP EPS of $0.60 beating the $0.5793 consensus. License revenue jumped 29% and data center royalty revenue more than doubled year over year. Full-year FY2026 revenue reached $4.92 billion, up 22.79%, a third straight year above 20% growth.
Why Bulls See Arm Following Nvidia’s Playbook The bull case rests on more than $2 billion in customer demand for the Arm AGI CPU across FY27 and FY28. Meta is the lead partner on a multi-generation roadmap targeting 3+ billion users.
Google is replacing x86 host processors with custom Arm-based Axion CPUs in next-gen TPUs. NVIDIA announced Vera, its next Arm-based CPU. Microsoft is expanding Cobalt across Azure. Arm claims roughly 50% CPU compute share among top hyperscalers.
Management is tracking toward a $15 billion silicon business forecast against a data center CPU market that could exceed $100 billion by 2030. If the AGI CPU ramp materializes, the bull-case scenario points to $434.24 within twelve months, a 59.95% return.
What Could Go Wrong Valuation is the biggest hurdle. Arm trades at a trailing P/E of 311 and a forward P/E of 122. Non-GAAP operating margin compressed from 52.8% to 49.1% as R&D spending jumped 43% to $1.911 billion. Bulls note this reflects deliberate investment in AGI CPU engineering that should scale as royalties ramp.
The Qualcomm/Nuvia trial expected in Q4 calendar 2026, SoftBank’s controlling stake, and export-control risk all weigh. The bear scenario points to $238.31, a 12.22% drawdown.
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How Arm Compares to Nvidia and Broadcom NVIDIA (NASDAQ:NVDA) trades at $202.81 with a YTD gain of just 8.88%, versus Arm’s 144%. Arm trails Nvidia in scale, yet its royalty model captures a slice of every hyperscaler’s custom silicon roadmap, including Nvidia’s own Vera CPU. That relationship makes our target look conservative if Arm’s per-chip take rate expands.
Broadcom (NASDAQ:AVGO) is the sharper comp on custom AI silicon economics. It posted Q2 FY2026 AI semiconductor revenue of $10.8 billion, up 143% YoY, and guided Q3 AI revenue to $16 billion.
Broadcom already runs a hyperscaler custom silicon business at scale, exactly where Arm is heading. Arm’s $271 price implies investors are willing to pay for the same trajectory earlier, making our 11% upside target measured rather than aggressive.
What Would Confirm or Break the Thesis The 24/7 Wall St. price target of $301.87 with 90% confidence backs a buy. The tipping factor is the AGI CPU demand book: $2 billion locked in across FY27-FY28 represents concrete, contracted demand.
The setup looks constructive if Q1 FY27 lands inside guidance and data center royalty growth stays north of 50%. The thesis weakens if operating margins slip below 45% or the Qualcomm/Nuvia trial produces a materially adverse ruling.
Extending the 24/7 Wall St. price target model forward and blending base and bull-case trajectories, here is where Arm could trade if the AGI CPU roadmap executes.
Year 24/7 Wall St. Price Target 2026 $301.87 2027 $335 2028 $360 2029 $378 2030 $395.91 These projections assume Arm executes on the $15 billion silicon business forecast and holds hyperscaler CPU share near 50%. Significant upside is possible if agentic AI CPU demand outpaces the 4x-per-gigawatt baseline, and downside if licensing disputes or export controls disrupt the royalty ramp.
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NEW YORK, July 21, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of AST SpaceMobile, Inc. (“AST” or the “Company”) (NASDAQ: ASTS). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether AST and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On January 7, 2026, Scotiabank downgraded AST to Sell, citing, among other things, significant competition from SpaceX’s Starlink, slow customer adoption, and delays in launching AST’s satellites.
Following the downgrade, AST’s stock price fell $11.76 per share, or 12.06%, to close at $85.73 per share on January 7, 2026.
Then, on July 15, 2026, AST issued a press release “announc[ing] the pricing of $1.0 billion aggregate principal amount of 1.625% convertible senior notes due 2034”.
On this news, AST’s stock price fell $11.30 per share, or 17.04%, to close at $55.01 per share on July 16, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
With high-profile launches and increased investments, the space economy appears to be entering a growth phase. And although it can be hard to put a value on space operations, Morgan Stanley (MS +1.89%) seems to think the space economy is on its way to a trillion-dollar market by 2040.
Whether the space economy hits that mark over the next 14 years remains to be seen, but there's no doubt it's growing, with runway ahead. For investors looking to hop on the train, three companies poised to benefit are Space Exploration Technologies (SPCX +2.79%) (also known as SpaceX), AST SpaceMobile (ASTS +9.21%), and Lockheed Martin (LMT 0.89%).
Image source: Getty Images.
How Morgan Stanley sees the space economy evolving Looking back a decade, Morgan Stanley divided the space economy into four broad segments, and here's how much revenue they each generated:
SegmentRevenueMarket ShareGround Equipment$113 billion33.33%Consumer TV$98 billion28.91%Government$84 billion24.78%Other$44 billion12.98% Data source: Morgan Stanley.
Ground equipment includes satellite dishes and GPS systems; consumer TV is traditional satellite TV services; and government covers defense spending and other manufacturing.
By 2040, when Morgan Stanley estimates the space industry will be worth $1 trillion, it sees two key categories emerging: internet and consumer broadband. If this plays out, it shows a shift toward connectivity, with the internet and consumer broadband emerging as key segments.
SegmentRevenueMarket ShareInternet$412 billion39.13%Ground Equipment$196 billion18.61%Government$181 billion17.19%Consumer TV$117 billion11.11%Consumer Broadband$95 billion9.02%Other$52 billion4.94% Data source: Morgan Stanley.
1. SpaceX is the marquee space company SpaceX is arguably the most important company in the space economy. To begin, it launches more satellites, cargo, and rockets than any other space company by a wide margin. In fact, it launches more than every other space company combined.
The company is also a pioneer in developing reusable rockets, helping to reduce launch costs and shorten the time between missions. It's a competitive advantage, but developments will also lift the tide and help the broader space industry.
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Rocket launches are a huge part of SpaceX's business, but one of its key moneymakers is Starlink, its satellite internet and connectivity business. If Morgan Stanley's estimates are correct and space internet and broadband become $507 billion industries, SpaceX is in a great position to capture a large share of the market.
SpaceX's stock is extremely expensive right now after its initial public offering, so it's one I'd keep an eye on but be cautious of for the time being.
Image source: The Motley Fool.
2. AST SpaceMobile is aiming to revolutionize your cellular service AST SpaceMobile isn't quite a household name like SpaceX, but it's becoming a key player in advancing satellite broadband services. Right now, it's in its early stages and still releasing its satellite foundation, but AST SpaceMobile aims to become the direct-to-device satellite cellular service. Think: cell towers in space.
Instead of reaching customers directly, AST SpaceMobile will use mobile network operators, such as AT&T and Verizon Communications, for distribution. It's a revenue-sharing agreement that instantly gives AST SpaceMobile access to millions of consumers. Its commercial service is projected to begin in 2027.
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AST SpaceMobile is still an unproven company that's operating at a loss, so there's risk with the stock. However, if you're a believer in the eventual scaling of space-based broadband networks, AST SpaceMobile is a compelling choice. The stock is extremely volatile right now, so there's no need to rush and invest, but it's worth keeping an eye on.
3. Lockheed Martin has a growing space business Lockheed Martin is best known as a defense contractor, but within that is a growing space business. It makes missile warning systems, military satellites, GPS satellites, and other vital hardware. In the first quarter, its Space segment's $3.43 billion in revenue accounted for 19% of its total revenue.
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If government space spending is expected to reach $181 billion by 2040, Lockheed Martin is well-positioned to capture a sizable share as one of the government's most reliable defense contractors.
Military defense aside, Lockheed Martin was also the main contractor for NASA's Orion spacecraft, which was responsible for the famous Artemis II Mission that took astronauts farther from Earth than any human had ever gone. That shows Lockheed Martin is more than a weapons builder and could become a go-to partner for NASA going forward.
Lockheed Martin isn't a stock that's likely to experience high growth, but its dividend is routinely at least double the S&P 500 average.
Key Takeaways NU agreed to acquire a Brazilian bank license, strengthening its local operations.Nu Mexico won final bank authorization as it serves 15 million customers and adds about 12,000 daily.NU ended Q1 2026 with 135.2 million customers, while credit rose 40% and deposits climbed 22%. Nu Holdings Ltd. (NU - Free Report) , the company behind the Nubank brand, announced an agreement to acquire Banco Porto Real de Investimentos in Brazil to add a new banking license to its local operations. The deal, which remains subject to approval from Brazil’s Central Bank, will help Nubank meet regulatory requirements governing the use of bank-related names by financial institutions.
For Brazilian customers, the company said that nothing will change, as the app, products, services, brand and name will remain the same. The acquired license joins NU’s existing payment, credit, investment, financing and brokerage licenses without requiring additional capital or liquidity requirements. Brazil remains its core market, with more than 115 million customers and a planned investment of R$45 billion in 2026.
Nubank is also expanding its banking operations in Mexico. This month, Nu Mexico received final authorization to operate as a bank and must complete the transition within 30 days. It serves 15 million customers, adds about 12,000 customers daily and plans to invest $4.2 billion in the country through 2030.
The timing is backed by strong operating results. NU ended first-quarter 2026 with 135.2 million customers and generated $5.32 billion in managerial revenues. Its credit portfolio rose 40% year over year to $37.2 billion, while deposits increased 22% to $42.4 billion.
Still, investors should view the Brazil move mainly as a regulatory and strategic step rather than an overnight earnings trigger. The larger opportunity lies in deeper product adoption across Brazil’s addressable pool, which exceeds $100 billion in annual gross profit. NU estimates its share of that pool at roughly 7%, leaving room to expand lending, deposits, investments and services.
How Are SOFI & XYZ Faring?SoFi Technologies (SOFI - Free Report) is expanding beyond consumer lending by adding small-business loans, home-equity products, AI financial tools, enterprise banking and blockchain-based services. SOFI's partnerships are also bringing more funding onto its loan platform, reducing reliance on balance-sheet lending. Three agreements announced in March 2026 covered more than $3.6 billion in personal loans.
Block (XYZ - Free Report) is widening its reach through Cash App, Square, Afterpay and bitcoin products, linking consumer payments with merchant services and credit. Its tools include installment plans for peer-to-peer transfers, contactless payments and restaurant technology. Across Cash App Borrow, Afterpay and Square Loans, XYZ has provided customers with access to more than $200 billion.
NU’s Price Performance, Valuation, and EstimatesShares of NU have declined 5.1% in the past three months, underperforming the broader industry and the S&P 500 Index.
Image Source: Zacks Investment Research
From a valuation standpoint, NU trades at a forward price-to-earnings ratio of 13.87X, well above the industry’s 11.19X. It carries a Value Score of C.
Image Source: Zacks Investment Research
NU’s estimates have declined a cent over the past two months. The Zacks Consensus Estimate for full-year 2026 EPS is pegged at 83 cents.
Image Source: Zacks Investment Research
NU stock currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Domino's sees aggregators and carryout as key growth levers, with meaningful order incrementality.DPZ uses premium aggregator pricing and better fulfillment timing to support franchisee economics.Domino's scale, store density and supply chain help it compete despite weak near-term momentum. Domino’s Pizza, Inc. (DPZ - Free Report) is entering a phase in which pizza demand is less about one ordering channel and more about capturing occasions across delivery, carryout, loyalty and aggregators.
The company’s second-quarter fiscal 2026 results showed that order growth remains central to the story, even as ticket pressure, promotions and cautious consumer spending complicate the near-term setup.
DPZ's Aggregators Are Changing the PlaybookDomino’s continued to expand on Uber and DoorDash and believes it is now the leading pizza player on both platforms. Management still sees room to grow because the brand remains below what it views as its fair share of the broader aggregator marketplace.
The economics matter. Management continues to point to roughly 50% incrementality from aggregator orders, while premium pricing on those platforms is intended to keep franchisee profitability broadly neutral across channels.
Domino’s Carryout White Space Stands OutCarryout remains one of Domino’s clearer long-term growth levers. Management has said that when a new store opens, about 80% of the carryout business is incremental, rather than shifted from an existing location.
That supports the case for more U.S. development over time. Domino’s ended the fiscal second quarter with 7,231 U.S. stores and added 26 net U.S. stores in the period, while its carryout share of about 20% leaves room for further penetration.
DPZ's Technology Supports Better FulfillmentDomino’s orchestration agent is designed to connect third-party ordering and the company’s own operating platform more effectively. The goal is to align food preparation with driver availability and customer pickup timing.
That coordination matters in pizza. A pie made too early can sit before handoff, hurting temperature and the delivery experience. Better timing can protect product quality while supporting aggregator, delivery and carryout growth.
Domino’s Scale Is a Strategic EdgeDomino’s scale gives it tools that smaller operators often lack. Management points to lower market-basket costs for franchisees, a large advertising budget and supply-chain infrastructure as advantages in a promotional restaurant market.
That edge may matter more when pricing flexibility is limited. Papa John's International, Inc. (PZZA - Free Report) , which currently carries a Zacks Rank #5 (Strong Sell), is part of the same pizza-demand discussion, as investors assess which brands can balance value messaging with franchisee economics.
Yum! Brands, Inc. (YUM - Free Report) , which carries a Zacks Rank #3 (Hold) at present, gives investors another large franchised restaurant model to compare against Domino’s through Pizza Hut. The contrast highlights why digital execution, store density and supply-chain support remain central in pizza competition.
How DPZ's Ratings Capture the CrosscurrentsThe bottom line is that Domino’s long-term growth story still has several visible supports, including aggregators, carryout, loyalty, technology and scale. The near term is less clean, with second-quarter U.S. same-store sales up only 0.1% and ticket pressure offsetting meaningful order-count growth.
DPZ currently carries a Zacks Rank #4 (Sell). That rank reflects pressure in the estimate picture, including a decline in fiscal 2026 earnings estimates over the past 30 days.
The Style Scores show the split. Domino’s has a Growth Score of A, underscoring favorable longer-term growth characteristics, while its Momentum Score of F signals weak price and earnings momentum. For investors, that combination points to a business with structural strengths, but a stock that still needs cleaner execution and estimate support before sentiment improves.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways Applied Optoelectronics posted 154% year-over-year data center revenue growth in first-quarter 2026. AAOI is expanding Texas manufacturing to boost 800G and 1.6T optical transceiver production. AAOI expects second-quarter 2026 revenues of $180M-$198M amid rising AI infrastructure demand. Applied Optoelectronics (AAOI - Free Report) is benefiting from a significant surge in demand for optical networking products, particularly driven by the rapid expansion of AI infrastructure and hyperscale data centers. In the first quarter of 2026, both the data center and CATV (cable TV) businesses experienced strong momentum, with data center revenues up 154% year over year. This growth is being fueled by hyperscale customers ramping up investments in next-generation infrastructure, which requires high-speed optical transceivers such as AOI’s 400G, 800G and 1.6T products.
The company is aggressively expanding its manufacturing footprint, especially in Texas. The company’s U.S. facilities are expected to produce over 650,000 units of 800G and 1.6T products per month by the end of 2026, with further expansion to over 930,000 units monthly by the end of 2027.
Building on this momentum, in July 2026, Applied Optoelectronics began the construction of two facilities in Pearland, TX, adding nearly 400,000 square feet of manufacturing capacity. The expansion will increase production of 800G and 1.6T optical transceivers used in AI data centers.
The expansion supports rising demand for high-speed optical connectivity and strengthens AOI's ability to serve hyperscale cloud customers. The company expects the new facilities to enhance manufacturing scale, create high-quality jobs, and reinforce its position as a key supplier of advanced optical networking products for AI and cloud infrastructure markets.
AAOI’s robust demand for its next-generation data center products, particularly driven by the rapid expansion of AI infrastructure and the company’s ongoing investments in manufacturing capacity, is expected to benefit the company’s top-line growth. For the second quarter of 2026, the company expects revenues in the range of $180 million to $198 million, implying continued sequential growth.
AAOI Faces Stiff CompetitionApplied Optoelectronics is facing stiff competition from Lumentum (LITE - Free Report) and Coherent (COHR - Free Report) in the optical networking market. Coherent and Lumentum’s partnerships with NVIDIA pose a significant threat to AAOI.
During the third quarter of fiscal 2026, Coherent announced a strategic partnership with NVIDIA focused on advanced optical networking and CPO technologies for AI data centers. The agreement includes a $2 billion equity investment from NVIDIA and a multi-year supply agreement extending through the end of the decade.
In March 2026, Lumentum entered into a multi-year strategic agreement with NVIDIA to accelerate the development of advanced optical technologies for next-generation AI infrastructure. The partnership includes a multibillion-dollar purchase commitment and a $2 billion NVIDIA investment to expand Lumentum’s U.S. manufacturing capacity and R&D capabilities.
AAOI’s Share Price Performance, Valuation, and EstimatesApplied Optoelectronics shares have skyrocketed 195.5% in the year-to-date period, outperforming the Zacks Computer & Technology sector’s rise of 11.8% and the Zacks Electronics - Semiconductors increase of 27.4%.
AAOI Stock’s Performance
Image Source: Zacks Investment Research
Applied Optoelectronics shares are currently overvalued, as suggested by its Value Score of F. AAOI stock is trading at a premium with a trailing 12-month Price/Sales of 15.44X compared with the Electronics - Semiconductors industry’s 14.37X.
AAOI’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at 80 cents per share, which has been unchanged over the past 30 days. This suggests 407.69% year-over-year growth.
AAOI’s Zacks RankApplied Optoelectronics currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Tempus AI shares erased early losses and recovered after an initial selloff tied to the company’s acquisition of Personalis.
Tempus AI Targets $20 Billion MRD MarketThe acquisition, valued at $1.5 billion, is set to expand Tempus’ reach in the MRD market. Tempus claims it presents a $20 billion opportunity.
William Blair has a favorable view of the strategic fit and expects Personalis’ growth and profitability trajectory to be meaningfully different inside of Tempus than it would have been as a standalone company.
William Blair Sees Long-Term Growth But Flags Profitability QuestionsThe acquisition multiple is high at ~14 times 2027 consensus sales, though analyst Matt Larew wrote that the consensus likely understates Personalis’ 2027 revenue outlook given recent MolDX approvals and Tempus’ ability to further leverage its commercial infrastructure.
The other pressure point will be profitability given Personalis’ clear loss-making position (consensus adjusted EBITDA of -$90 million for 2027) and Tempus’s commitment to be EBITDA and FCF positive in 2027.
Management argued that the timing of the acquisition is coincident with Personalis reaching an inflection point, with several years of commercial and reimbursement investment likely to yield enhanced ASPs and margins moving forward.
William Blair rates Tempus AI shares Market Perform. For multiple expansion to materialize, analyst Larew expects investors will want to see additional positive proof points on recent M&A contributing to numbers and more clarity on the growth profile and durability of the data business.
BNP Paribas Says Deal Could Increase Pressure On NateraAnalyst Navann Ty wrote that Natera maintains a defensible, leadership position in the space, with a solid pipeline of ongoing clinical trials.
BNP Paribas maintains Neutral on Natera as the company continues to progress towards catalysts but views the current valuation as fair.
TEM Stock Price Activity: Tempus AI shares were up 1.96% at $49.36 at the time of publication on Tuesday, according to Benzinga Pro data.
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Few names have captured the 2026 AI-power thesis like Bloom Energy (NYSE:BE). The stock is up triple digits year to date, but a July short seller report and sharp pullback have investors asking whether the easy money is behind them.
The 24/7 Wall St. Price Target For Bloom Energy Bloom Energy trades at $214.96 as of the July 17 close. Our 24/7 Wall St. price target is $192.91, implying roughly 10.3% downside over the next 12 months. Our recommendation is hold, with model confidence of high (90%).
Metric Value Current Price $214.96 24/7 Wall St. Price Target $192.91 Upside/Downside -10.26% Recommendation HOLD Confidence Level 90% Why We Could Be Wrong Our price target sits below current levels. Real upside could come from formal expansion of the Oracle 2.8 GW capacity agreement or accelerated draws on the $5B Brookfield AI infrastructure partnership. A detailed bull case follows below.
From $24 To $351 And Back To $215 Bloom is up 147.39% year to date and 784.25% over the past year. Shares peaked at $351.28 before slipping 24.57% over the past month, triggered by a short seller report on July 8, 2026 alleging misleading disclosures on supply chain and production capacity.
Fundamentals remain strong. Q1 2026 revenue hit $751.05 million, growing 130.4% year over year and beating consensus by 39.08%. Non-GAAP EPS came in at $0.44 against a $0.13 estimate. Management raised FY2026 revenue guidance to $3.40B to $3.80B, implying roughly 80% growth at the midpoint.
The Case For $290+ The bull thesis: Bloom is becoming the default on-site power vendor for AI hyperscalers. Total backlog sits at roughly $20 billion, including a $6 billion product backlog that grew 2.5x year over year. CEO KR Sridhar told investors, “Bring-your-own-power has shifted from a slogan to a business necessity for AI hyperscalers and manufacturing facilities. This shift is secular and growing.”
Goldman Sachs’ 2026 outlook noted growing demand for energy solutions as US grid assets average 40 years old. The bull case scenario tags Bloom at $289.66, roughly 35% above current levels and in line with Street consensus.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Bloom Energy didn't make the cut. Grab the names FREE today.
What Could Go Wrong Valuation is a concern. Bloom trades at 24.97x price-to-sales and Q1 saw $373.30 million of product revenue flow through related-party sales to Brookfield JVs. Customer concentration risk is real. The short seller allegations and Rosen Law investigation add overhang. Our bear case models $141.62, or 34% downside.
How Bloom Stacks Up Against GE Vernova And Constellation Energy GE Vernova (NYSE:GEV | GEV Price Prediction) is the closest peer on the equipment side. GEV is up 62.15% YTD at $1,069.69, roughly half of Bloom’s YTD run. GEV’s diversification across gas turbines, wind, and grid explains the tamer multiple. Bloom’s outperformance suggests the market is paying a scarcity premium for on-site fuel cell exposure, leaving less margin for execution error.
Constellation Energy (NASDAQ:CEG) is the utility-side comp, with a $89.9B market cap and FY2026 adjusted EPS guidance of $11 to $12. That is a low-20s forward multiple against Bloom’s 96x. Bloom’s growth rate is higher, but the delta shows how much AI-power optimism is embedded in BE. The peer set makes our price target look reasonable.
Bloom Energy Price Prediction 2026-2030 Our $192.91 price target and hold rating reflect a stock that has earned its rerating but priced in substantial good news. Bullish catalysts to watch include Bloom converting the Oracle warrant into a locked-in multi-gigawatt contract or short seller claims being decisively refuted. Bearish signals would include a further rise in related-party revenue mix or trimmed AI capex forecasts.
Year 24/7 Wall St. Price Target 2026 $210 2027 $193 2028 $205 2029 $215 2030 $193 These projections assume Bloom delivers on its factory capacity doubling to 2 GW by end of 2026 and steady margin expansion. Significant upside could come from additional hyperscaler contracts, while a tax credit rollback or AI capex pause would take the model lower.
Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Bloom Energy didn't make the cut. Grab the names FREE today.
John Wilson Boynton IV, Chairman of the Board of Directors at Nebius Group N.V. (NBIS +15.23%), sold 6,958 Class A Shares on July 15, 2026 according to the SEC Form 4 filing.
Transaction summaryMetricValueShares sold (directly held)6,958Transaction value~$1.4 millionPost-transaction shares (directly held)~421,000Post-transaction value$84.02 millionTransaction value based on SEC Form 4 weighted average sale price ($197.00); post-transaction value based on July 15, 2026 market close ($199.51).
Key questionsHow significant was this liquidation relative to the director's total position?
The sale of 6,958 shares represented 2% of Boynton's equity stake, leaving him with ~421,000 Class A Shares held directly.What were the execution details of the transaction?
The shares were sold at a weighted average price of $197.00, though individual trade prices ranged from $187.74 to $202.59 during the July 15 session.What is the company's current scale and operational focus?
Based in Amsterdam, the firm operates in the Communication Services sector with a market capitalization of $41.2 billion and a workforce of 1,543 employees focused on AI cloud infrastructure.How does the director's residual stake compare to the broader insider base?
Following the transaction, Boynton maintains a direct position valued at $84.02 million, contributing to a total insider ownership level of 0.18% as of the July 17, 2026 filing.Company OverviewMetricValueShare Price (as of market close 2026-07-16)$171.77Market Capitalization$41.2 billionRevenue (TTM)$877.9 millionNet Income (TTM)$836.4 millionCompany SnapshotNebius Group develops and operates a comprehensive AI-focused cloud infrastructure platform designed to serve the global artificial intelligence industry, featuring GPU computing clusters, cloud services, and developer tools.The company generates revenue through its Nebius cloud platform by providing essential infrastructure services to enterprises and developers requiring high-performance computing resources for AI workloads and applications.Nebius targets technology companies, enterprises, and developers globally who require scalable GPU computing and cloud infrastructure to support artificial intelligence development and deployment initiatives.Nebius Group N.V. is a technology infrastructure provider specializing in AI-centric cloud computing solutions with a market capitalization of $41.2 billion as of July 2026. The company has demonstrated exceptional growth momentum, with a one-year share price appreciation of 272.71%, reflecting strong investor demand for AI infrastructure providers.
With 1,543 employees and headquarters in Amsterdam, Nebius maintains a focused operational structure while scaling its GPU computing and cloud service offerings to meet accelerating global demand for AI infrastructure.
What this transaction means for investorsThe July 15 sale of Nebius Group stock by the company’s Chairman of the Board, John Boynton IV, occurred after shares soared nearly 300% over the past 12 months, although well after dropping from a 52-week high of $299.86 on June 22. The disposition represented just 2% of his holdings, which suggests he wanted to lock in some of his gains, but is holding on to over 400,000 shares in a sign he has a bullish outlook towards the stock.
Nebius shares are up because of its success as a neocloud, which is a cloud computing provider that specializes in data center infrastructure optimized for AI. Its first-quarter revenue rose an impressive 684% year over year to $399 million. It also disclosed a $2 billion investment from Nvidia, which demonstrates the AI semiconductor chip leader’s high conviction in Nebius’ infrastructure approach.
Unlike other neocloud rivals, Nebius is focused on carefully managing the financial impact of its data center expansion, as costs can quickly spiral out of control. It seeks prepayments from customers in order to reduce the capital needed from equity and debt financing, which has encouraged Wall Street to invest in the stock.
Key Takeaways Rigetti ended the first quarter with nearly $569 million in liquidity and no debt.Investments target Fab-1 expansion, refrigeration capacity and chiplet-based architecture.Rigetti plans to invest up to $100 million in the U.K. while pursuing quantum advantage. Rigetti Computing’s (RGTI - Free Report) first-quarter 2026 results highlighted that one of the company’s greatest strengths goes well beyond its quantum technology. It ended the quarter with nearly $569 million in cash, cash equivalents and available-for-sale investments, while remaining debt-free. This robust liquidity gives Rigetti the financial capacity to execute its multi-year technology roadmap without relying on frequent capital raises, a notable advantage in an industry where many emerging quantum players continue to face funding constraints.
The company intends to keep investing aggressively throughout 2026, with spending directed toward expanding Fab-1 manufacturing capabilities, increasing dilution refrigeration capacity and advancing its chiplet-based quantum architecture. While these investments may weigh on near-term profitability, they are designed to strengthen Rigetti’s technology leadership and support the development of larger, higher-performance quantum systems.
Management also emphasized that its primary objective remains long-term value creation rather than meeting short-term financial milestones. The company continues to focus on improving gate fidelity, scaling modular quantum computing systems and reaching quantum advantage over the next three years. Backed by disciplined capital allocation and a healthy balance sheet, Rigetti believes it has the resources needed to pursue these goals.
Beyond its U.S. operations, Rigetti plans to invest up to $100 million in the United Kingdom to expand its international presence while continuing to build strategic partnerships that support its technology roadmap. Although quarterly revenues are expected to fluctuate due to the timing of quantum system deliveries, the company’s strong financial foundation provides the flexibility to execute its long-term strategy and benefit from the growing commercial adoption of quantum computing.
Peers UpdatesQuantum Computing Inc. (QUBT - Free Report) or QCi announced the completion of acquiring NHanced Semiconductors, Inc. for a combination of cash and QCi stock valued at $73.1 million, subject to customary adjustments, and up to an additional $72.0 million if certain performance targets are achieved. The acquisition marks an important step in QCi’s transition from research-driven innovation and prototyping to scalable commercial production.
D-Wave Quantum (QBTS - Free Report) is expanding beyond annealing into gate-model quantum computing following its Quantum Circuits acquisition. The company targets roughly 175 physical qubits by the end of 2028, 10 logical qubits by 2030 and 100 logical qubits by 2032. However, delays in foundry capacity, chip integration or customer adoption could postpone commercialization and keep revenue growth uneven.
Rigetti’s Price Performance, Valuation and EstimatesShares of RGTI have lost 35.7% in the year-to-date period compared with the industry’s decline of 6.7%.
Image Source: Zacks Investment Research
From a valuation standpoint, Rigetti trades at a price-to-book ratio of 8.12, above the industry average. RGTI carries a Value Score of F.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Rigetti’s 2026 earnings implies a significant 71.9% improvement from the year-ago period.
Image Source: Zacks Investment Research
The company currently has a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Nebius Group‘s (NASDAQ:NBIS | NBIS Price Prediction) stock is catapulting 16% higher Tuesday to $212 after NVIDIA (NASDAQ:NVDA) disclosed a 9.3% beneficial ownership stake in the AI cloud specialist. The move extends Nebius stock’s run to 155% year to date (YTD), a pace that has Wall Street debating whether the valuation has outrun the fundamentals.
CoreWeave (NASDAQ:CRWV) stock is following Nebius higher, up 8% to $79 versus a milder 10% YTD gain. Meanwhile, Oracle (NYSE:ORCL) stock is climbing 5% to $127, though Oracle shares remain down 35% YTD even after today’s bounce.
NVIDIA’s Stake Filing Ignites the Rally NVIDIA disclosed in a Schedule 13G filing that it beneficially owns 22,256,412 Class A shares of Nebius stock, or 9.3% of the class. Most of that stake comes from a pre-funded warrant tied to a $2 billion private placement Nebius completed in March, with the rest held outright.
Contractual restrictions bar NVIDIA from exercising the warrant or selling the underlying shares before September 11, and NVIDIA’s use of a 13G rather than a 13D signals it isn’t seeking control of Nebius. Nebius stock’s trailing 12-month (TTM) P/E ratio of 82.36x, along with a roughly $46 billion market value, shows just how much the company’s assumed growth is already priced in.
CoreWeave Catches a Sympathy Bid CoreWeave stock doesn’t have an obvious company-specific catalyst behind today’s 8% pop to $79. The move looks more like a sympathy trade off Nebius’s headline news, layered on top of the NASDAQ 100’s 1.9% advance today. That leaves CoreWeave stock’s 10% YTD gain lagging Nebius stock’s 155% climb by a wide margin, especially since CoreWeave carries no TTM P/E ratio while it remains unprofitable on a trailing twelve-month basis.
Traders adding CoreWeave stock here are largely betting on momentum continuing rather than on any fresh, company-specific data point. That makes CoreWeave’s move today more fragile than Nebius stock’s catalyst-driven surge, even though both stocks are moving in the same direction.
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Oracle’s Bulls and Bears Square Off Mizuho reiterated its Outperform rating and kept a $320 price target on Oracle stock, implying 164% upside from Monday’s close. The brokerage noted Oracle stock trades at just 14x projected 2027 non-GAAP earnings, a discount to peers, while Oracle stock’s TTM P/E ratio of 21.74x looks comparatively reasonable next to Nebius stock’s 82.36x multiple.
On the other hand, Oracle’s credit market signals point to rising unease. The cost of five-year credit default swaps on Oracle’s debt climbed to 2.03 percentage points this week, the highest level since records began in 2008. S&P Global Ratings recently cut Oracle to BBB-, just one notch above junk status, and Moody’s Ratings holds Oracle at Baa2 with a negative outlook.
A Diversified Play, and the Next Catalysts to Watch For investors who don’t want to pick a single winner among Nebius, CoreWeave, and Oracle stock, they may choose to get exposure via a cloud-focused ETF. In that vein, the First Trust Cloud Computing ETF (NASDAQ:SKYY) offers diversified exposure to the AI cloud theme. The ETF isn’t immune to sector risk, though, since its holdings stay concentrated in cloud and data-infrastructure names rather than spread across unrelated industries.
Nebius stock appears to be the most speculative of the trio given its rich multiple and reliance on NVIDIA’s stamp of approval, while CoreWeave’s sympathy rally could prove fragile without a catalyst of its own. Oracle stock’s comparatively modest TTM P/E ratio of 21.74x may make it the best value of the three, provided the widening credit spreads don’t point to deeper trouble ahead.
Considering how differently these three stocks are priced for risk, investors might choose to keep their position sizes modest across the group, especially in the richer-multiple names. Investors can watch for whether Oracle’s September 9 earnings report shows capacity monetization catching up with the AI-spending worries pressuring Oracle’s bonds, and whether Nebius stock holds above $210 throughout the week.
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Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering eToro Group Ltd. (ETOR - Free Report) , which belongs to the Zacks Insurance - Brokerage industry.
When looking at the last two reports, this company has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 24.62%, on average, in the last two quarters.
For the most recent quarter, eToro Group Ltd. was expected to post earnings of $0.65 per share, but it reported $0.91 per share instead, representing a surprise of 40.00%. For the previous quarter, the consensus estimate was $0.65 per share, while it actually produced $0.71 per share, a surprise of 9.23%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for eToro Group Ltd.. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
eToro Group Ltd. has an Earnings ESP of +1.44% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #3 (Hold), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 11, 2026.
With the Earnings ESP metric, it's important to note that a negative value reduces its predictive power; however, a negative Earnings ESP does not indicate an earnings miss.
Many companies end up beating the consensus EPS estimate, but that may not be the sole basis for their stocks moving higher. On the other hand, some stocks may hold their ground even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
ToplineNintendo argued consumers “received exactly what they bargained and paid for” after raising the price for its Switch 2 console, asking a court to dismiss a class-action lawsuit claiming the video game giant should issue tariff rebates, as only a handful of companies have said they would issue refunds.
The video game giant previously blamed “market conditions” for price hikes.
Copyright 2025 The Associated Press. All rights reserved
Key FactsNintendo, in a motion filed late Monday, argued consumers who sued the firm to receive tariff refunds are “not entitled” to a rebate and claimed the money they paid for Nintendo products “represents the purchase price of the goods they wanted and received.”
Consumers filed a class-action lawsuit against Nintendo in April, claiming the company—which sued the Trump administration to recoup tariff payments—raised its prices because of the tariffs and would later receive refunds for those levies, effectively allowing the company to collect the costs twice.
Nintendo’s attorneys criticized the lawsuit’s argument as “meritless,” arguing consumers failed to dispute Nintendo’s price adjustments as unlawful or that the company misled customers.
In its motion, Nintendo said it made the “difficult decision” to raise prices for some of its products “in response to market conditions,” which the firm said included tariffs as well as the cost of memory, labor and shipping.
Shares of Nintendo dropped 4% in Tokyo-based trading on Tuesday.
crucial quote“Nintendo or one of its retailers set a price for each product, and consumers decided whether that price was worth paying,” Nintendo’s attorneys wrote. “Those who bought Nintendo’s products received exactly what they bargained and paid for: a console, game and/or accessory at a price to which both parties agreed.”
what companies will issue tariff refunds?Only a few have publicly stated they would pass on tariff refunds to consumers: Costco CEO Ron Vachris said in March the company would turn tariff refunds into “lower prices and better values.” FedEx said it would issue refunds to shippers and consumers who originally paid the tariff charges. UPS similarly said it would reimburse customers for tariff-related charges.
tangentFord, which has said it would not pass on tariff refunds, faces a proposed class-action lawsuit in Michigan from consumers who claim they should receive reimbursement. Ford previously said it expected a one-time $1.3 billion refund.
key backgroundNintendo announced a price hike for its then-upcoming Switch 2 console one day after President Donald Trump announced sweeping tariffs against more than 180 countries last year. The video game firm launched global price hikes again earlier this year, citing “market conditions,” following similar moves by Sony and Microsoft amid a broader chip supply crunch. The Trump administration has said it would refund $166 billion to some 300,000 different importers after the Supreme Court ruled Trump’s levies were unlawful, leading the way for many firms, like Nintendo, to sue for reimbursement. Some economists have warned that tariff rebates would only benefit U.S. importers. Among those making that argument is UBS chief economist Paul Donovan, who wrote earlier this year it “seems unlikely anyone will rush to lower prices to their consumers.”
further readingForbesNintendo’s Switch 2 Gets A $50 Price Hike—Company Blames ‘Market Conditions’By Siladitya RayForbesNintendo Surprises With Switch 2 Price Hike—As Trump Imposes Tariffs On China And VietnamBy Conor Murray
ForbesTariff Refunds Start Today—But Average Consumers Won’t BenefitBy Ty Roush
NEW YORK, July 21, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Shutterstock, Inc. (“Shutterstock” or the “Company”) (NYSE: SSTK). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Shutterstock and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On July 13, 2026, Shutterstock issued a press release “announc[ing] that Paul Hennessy has stepped down as the Company’s Chief Executive Officer and as a member of the Board of Directors, effective immediately.”
On this news, Shutterstock’s stock price fell $0.24 per share, or 2.83%, to close at $8.25 per share on July 13, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
Key Takeaways DOC formed a joint venture with Brookfield involving 86 outpatient medical properties worth $2.1 billion.BAM acquired a 49% stake, while DOC retained 51% control and continues managing the portfolio.The venture provides long-term capital, with 95% of the 5.6 million-square-foot properties leased. Healthpeak Properties, Inc. (DOC - Free Report) and Brookfield Asset Management Ltd. (BAM - Free Report) have formed a long-term strategic capital partnership through a joint venture involving a portfolio of outpatient medical buildings across the United States. DOC contributed 86 properties totaling about 5.6 million square feet, with the portfolio valued at roughly $2.1 billion.
The properties are spread across 11 states, including Kentucky, Indiana, Pennsylvania, Arkansas, Illinois, Minnesota, New Jersey and New York. The portfolio is 95% leased and has a weighted average remaining lease term of six years, giving the joint venture a stable base of rental income.
Brookfield and its affiliates acquired a 49% non-controlling stake in the venture, while Healthpeak retained a 51% controlling interest. Healthpeak will remain the managing member and continue to handle asset management, leasing and property management. The company received about $1.025 billion in gross proceeds from the sale of 49% stake, which reflects a trailing cash capitalization rate of about 5.9% and a valuation of roughly $380 per square foot.
Healthpeak will also have the right, for a limited period starting after year seven, to buy back Brookfield’s interest at a price designed to provide BAM with a 6.5% net annual rate of return, excluding initial transaction costs.
The deal gives Healthpeak access to long-term capital while allowing it to keep control of the properties and benefit from future value growth. The joint venture is expected to remain consolidated in Healthpeak’s financial statements, with Brookfield’s stake recorded as a non-controlling equity interest.
ConclusionHealthpeak is raising substantial cash without giving up control of a well-leased portfolio. The structure could fund debt reduction, share repurchases or investments in faster-growing areas while giving Brookfield access to durable healthcare real estate.
In the past three months, shares of this Zacks Rank #3 (Hold) company have gained 36.5% compared with the industry's 6.2% growth.
Image Source: Zacks Investment Research
Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are Postal Realty Trust (PSTL - Free Report) and Welltower (WELL - Free Report) , each sporting a Zacks Rank of 1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for PSTL’s 2026 FFO per share is pegged at $1.41, which indicates year-over-year growth of 6.82%.
The Zacks Consensus Estimate for WELL’s full-year FFO per share is pinned at $16.32, which suggests an increase of 19.47% from the year-ago period.
Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.
Investors interested in stocks from the Beverages - Alcohol sector have probably already heard of Cervecerias Unidas (CCU - Free Report) and Ambev (ABEV - Free Report) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look.
There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with strong earnings estimate revision trends, and our Style Scores highlight companies with specific traits.
Cervecerias Unidas has a Zacks Rank of #2 (Buy), while Ambev has a Zacks Rank of #4 (Sell) right now. This means that CCU's earnings estimate revision activity has been more impressive, so investors should feel comfortable with its improving analyst outlook. But this is just one piece of the puzzle for value investors.
Value investors also tend to look at a number of traditional, tried-and-true figures to help them find stocks that they believe are undervalued at their current share price levels.
The Value category of the Style Scores system identifies undervalued companies by looking at a number of key metrics. These include the long-favored P/E ratio, P/S ratio, earnings yield, cash flow per share, and a variety of other fundamentals that help us determine a company's fair value.
CCU currently has a forward P/E ratio of 14.90, while ABEV has a forward P/E of 15.15. We also note that CCU has a PEG ratio of 0.77. This popular figure is similar to the widely-used P/E ratio, but the PEG ratio also considers a company's expected EPS growth rate. ABEV currently has a PEG ratio of 1.80.
Another notable valuation metric for CCU is its P/B ratio of 1.09. The P/B ratio pits a stock's market value against its book value, which is defined as total assets minus total liabilities. For comparison, ABEV has a P/B of 2.81.
These are just a few of the metrics contributing to CCU's Value grade of A and ABEV's Value grade of C.
CCU stands above ABEV thanks to its solid earnings outlook, and based on these valuation figures, we also feel that CCU is the superior value option right now.
IREN's expanding AI cloud contracts, secured power and rapid buildout strengthen its growth case, but funding and execution risks support holding the stock.
Sandisk (SNDK +12.15%) stock soared for a second straight day Tuesday, exploding 10.5% higher through 10:45 a.m. ET despite the rest of the Nasdaq being in the red.
You can thank Taiwan Semiconductor Manufacturing Company (TSM +5.55%) for that.
Image source: Getty Images.
TSMC raises prices Nikkei Asia reports today that TSMC will raise its prices for contract chip manufacturing (for customers such as Nvidia and AMD, for example) by "up to 10%" in 2027 (with the potential for some chip prices to spike 20%). Nikkei reports that TSMC is making this move to offset "rising costs for materials, manufacturing equipment and construction of new overseas chip plants." But that's just one reason.
The other reason is that TSMC is raising prices because it can.
After all, rising input prices don't automatically allow a manufacturer to raise its product prices. If customers balk at the price, the manufacturer may need to eat the cost of the more expensive inputs -- putting its profits at risk.
This is not the case at TSMC, however. It can raise prices, and it will -- and demand for artificial intelligence remains so strong that its customers will have to pay the higher price.
Today's Change
(
12.15
%) $
168.94
Current Price
$
1,559.89
What this means for Sandisk But what does this mean for Sandisk stock? Sandisk makes its own semiconductor memory chips; it's not a TSMC customer. So the connection between the two stocks may not be immediately obvious.
But consider: Demand for AI chips is so robust that TSMC can raise prices by 10% to 20%. AI chips require memory chips to perform inference functions, and Sandisk makes memory chips.
Conclusion: If AI chip demand is strong, then memory chip demand is probably also strong; and if AI chip prices are increasing, then prices for Sandisk's memory chips will also go up.
So will Sandisk stock.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
Sandisk (SNDK +12.15%) has had an unbelievable growth story this year. It was spun off from Western Digital in February 2025 in a fairly low-key restructuring, but by October, it had shot up, ending the year with a 650% gain. It has only continued to rise, and it's now up 3,810% since the spinoff.
The stock has soared after every one of the four earnings reports it has already posted, especially the last one. However, it's down 36% over the past month, trading around the price it was before the previous earnings report in May.
Should you buy Sandisk stock before fourth-quarter earnings results are released on Aug. 5?
Image source: Sandisk.
Memory is AI's hottest commodity The large artificial intelligence (AI) companies have already posted big gains. These were the obvious winners, like semiconductor stocks and large AI platforms. Nvidia and Palantir Technologies are probably the best examples.
While these companies are still growing rapidly, investors have been looking for other big opportunities, and one of the areas they've landed on is memory. Data centers need massive capacity to power training and inference, and the inference component requires a large amount of memory to process all the information. While several types of memory play a role, including high-bandwidth memory (HBM) and dynamic random-access memory (DRAM), which both serve to store information, NAND flash memory is a critical component, and few companies produce it. NAND stores information in an offset and is therefore important for low-power-consumption data storage; as AI models move toward deeper reasoning and agentic AI, this kind of non-volatile memory is crucial to the process.
As one of the few NAND memory providers, Sandisk has seen accelerating demand and, consequently, increasing prices. That has led to fantastic operating results, especially in its data center category.
What could happen on Aug. 5 Sandisk's third-quarter results for fiscal 2026 (ended April 3) were phenomenal, with a 251% year-over-year increase in revenue, a 78.4% gross margin, and an operating income of $1.1 billion, up from $2 million last year. It also made a change to its operating model, launching the "new business model" of long-term contracts to try to stabilize what could end up being a volatile business cycle.
For the fourth quarter, management is guiding for about $8 billion in revenue at the midpoint, up from $1.9 billion last year, and an 80% gross margin, up from around 26% last year.
Those are pretty fantastic results, and it's likely that Sandisk will surpass expectations, as it has for the past four quarters.
Today's Change
(
12.15
%) $
168.94
Current Price
$
1,559.89
So, you would think there's every reason to suspect the stock will soar on the news, and it might, especially because the stock is coming down. Sandisk was trading at a cheap P/E ratio of around 20 at the beginning of this year, but that ratio soared to 80 as the stock skyrocketed. That kind of valuation already includes some growth. At the current P/E ratio of 47, there's still room for the stock to rise on an earnings beat.
The bigger problem at this point might be fear about the future. AI stocks haven't been doing well as a category, since the market is worried about overspending. If clients pull back, Sandisk's unusual rise will come to an end.
I still think that there's room for Sandisk stock to jump after earnings, but investors need to be careful at this stage of the game. Many gains have been made, and as AI development continues to shift at a rapid pace, the winners and losers could change quickly. If you do want to invest in Sandisk's story, I wouldn't make it a prime position.
NEW YORK, July 21, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Solstice Advanced Materials, Inc. (“Solstice” or the “Company”) (NASDAQ: SOLS). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Solstice and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On July 6, 2026, Solstice issued a press release announcing an agreement to acquire Element Solutions (“Element”) “in a cash-and-stock transaction valued at approximately $14.5 billion, including the assumption of net debt.” Although Solstice’s Chief Executive Officer described the “combined company [as] very well-positioned to benefit from generational tailwinds in high-growth end markets” and touting Element’s purportedly “highly complementary capabilities, deep customer relationships and a technical service-led model”, Solstice’s stock price fell sharply as the market reacted to news of the Element acquisition, closing at $68.05 per share on July 6, 2026 – representing a decline of $12.14 per share, or 15.14%, from the Company’s July 2, 2026 closing price.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
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Have you been searching for a stock that might be well-positioned to maintain its earnings-beat streak in its upcoming report? It is worth considering Amentum Holdings (AMTM - Free Report) , which belongs to the Zacks Engineering - R and D Services industry.
This government services company has an established record of topping earnings estimates, especially when looking at the previous two reports. The company boasts an average surprise for the past two quarters of 2.67%.
For the most recent quarter, Amentum was expected to post earnings of $0.58 per share, but it reported $0.6 per share instead, representing a surprise of 3.45%. For the previous quarter, the consensus estimate was $0.53 per share, while it actually produced $0.54 per share, a surprise of 1.89%.
Price and EPS Surprise
Thanks in part to this history, there has been a favorable change in earnings estimates for Amentum lately. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the stock is positive, which is a great indicator of an earnings beat, particularly when combined with its solid Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Amentum has an Earnings ESP of +3.18% at the moment, suggesting that analysts have grown bullish on its near-term earnings potential. When you combine this positive Earnings ESP with the stock's Zacks Rank #2 (Buy), it shows that another beat is possibly around the corner. The company's next earnings report is expected to be released on August 11, 2026.
Investors should note, however, that a negative Earnings ESP reading is not indicative of an earnings miss, but a negative value does reduce the predictive power of this metric.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
NEW YORK, July 21, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Futu Holdings Ltd. (“Futu” or the “Company”) (NASDAQ: FUTU). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
The class action concerns whether Futu and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until August 25, 2026, to ask the Court to appoint you as Lead Plaintiff for the class if you purchased or otherwise acquired Futu securities during the Class Period. A copy of the Complaint can be obtained at www.pomerantzlaw.com.
[Click here for information about joining the class action]
On May 22, 2026, Reuters published an article entitled “China to crack down on ‘illegal’ cross-border securities.” The article reported that China “would punish brokers it accused of illegally moving money to foreign markets[.]” The article further reported that online brokers, including Futu, “would be penalised for soliciting business in China without an onshore licence[.]”
On this news, the price of Futu American Depositary Shares (“ADSs”) fell $34.10 per ADS, or 27.5%, to close at $89.76 per ADS on May 22, 2026.
Then, on May 28, 2026, Futu issued a press release reporting its financial results for the first quarter 2026, including net income of HK$831.0 million (US$106.0million) after giving effect to the proposed penalties comprised of: “(i) confiscation of illegal gains of approximately RMB470 million [approximately $69.21 million USD], and (ii) imposition of fines of approximately RMB1.38 billion, [approximately $20 billion USD] in an aggregate amount of approximately RMB1.85 billion.” The press release reported this adjustment under the Company’s financial statements as “Others, net” in its statements of comprehensive income for the applicable period.
On this news, Futu’s ADS price fell $5.31 per ADS, or 4.8%, to close at $104.91 per ADS on May 28, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
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Sandisk: Rapidly Accelerating RevenueSandisk (SNDK +12.15%) primarily designs, manufactures, and supplies a diverse range of computer data storage solutions, including embedded memory and removable cards, utilizing advanced flash technology.
It recently began production for its new 10th-generation flash memory technology alongside Kioxia in Japan, and it reported a 61% net income margin for the quarter ended April 3, 2026.
Seagate Technology: Steady Revenue ProgressSeagate Technology (STX +11.07%) operates as a global provider of mass capacity data storage technology, selling hard disk drives and solid-state drives primarily to original equipment manufacturers and distributors.
It recently reached a preliminary $175 million settlement to resolve a shareholder class-action lawsuit, and it posted a 24% net income margin for the quarter ended April 3, 2026.
Why Revenue Matters for Retail InvestorsRevenue serves as a critical baseline measure of a company's customer demand and overall sales volume over a given period. This metric helps investors measure a company’s overall size, market footprint, and long-term trajectory.
Quarterly Revenue for Sandisk and Seagate TechnologyQuarter (Period End)Sandisk RevenueSeagate Technology RevenueQ2 2024$1.8 billion (period ended June 2024)$1.9 billion (period ended June 2024)Q3 2024$1.9 billion (period ended Sept. 2024)$2.2 billion (period ended Sept. 2024)Q4 2024 (Dec. 2024)$1.9 billion$2.3 billionQ1 2025 (March 2025)$1.7 billion$2.2 billionQ2 2025 (June 2025)$1.9 billion$2.4 billionQ4 2025 (Oct. 2025)$2.3 billion$2.6 billionQ1 2026 (Jan. 2026)$3.0 billion$2.8 billionQ2 2026 (April 2026)$6.0 billion$3.1 billionData source: Company filings. Data as of July 16, 2026.
Foolish TakeExamining the revenue trends for Sandisk and Seagate Technology reveals key insights. The former trailed in sales until 2026, when Sandisk not only overtook Seagate, it handily blew past its data storage rival.
This sales surge was due to Sandisk’s focus on NAND flash memory while Seagate sells the traditional hard disk drive (HDD). NAND flash delivers extreme speed when it comes to processing data, far faster and more reliably than HDDs. The companies building artificial intelligence systems seek speed because of the massive troves of data AI must churn through to deliver its output.
As AI has rapidly expanded, necessitating the construction of new data centers, the demand for NAND flash has skyrocketed, as demonstrated by Sandisk’s sales of $6 billion in the most recent quarter. The company forecasted revenue of $7.8 billion to $8.3 billion in the next quarter. That’s more than the $7.4 billion Sandisk made in all of 2025.
Seagate’s revenue is steadily rising as AI demand contributed to its growth, but customers are not flocking to its products to the same degree as Sandisk. AI can continue to help Seagate’s sales grow, but the company is unlikely to see it take back the revenue lead from Sandisk any time soon.
NEW YORK, July 21, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Cerebras Systems Inc. (“Cerebras” or the “Company”) (NASDAQ: CBRS). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Cerebras and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On or around May 14, 2026, Cerebras completed its initial public offering (“IPO”), selling 30 million shares of Class A common stock priced at $185.00 per share. Then, on June 24, 2026, Cerebras reported its financial results for the first quarter of 2026. Among other items, Cerebras reported a loss of $0.22 per share, missing analyst estimates of a $0.16-per-share loss. In addition, Cerebras forecast a narrower gross margin in its core business, excluding impact from customer warrants and data center pass-through revenues.
On this news, Cerebras’s stock price fell $44.46 per share, or 19.61%, to close at $182.26 per share on June 24, 2026.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomlaw.com.
Attorney advertising. Prior results do not guarantee similar outcomes.
HomeIndustriesAerospace/DefenseEarnings OutlookEarnings OutlookPlus, investors just found out when insiders can start dumping their sharesJuly 21, 2026, 12:44 p.m. ET
SpaceX’s stock is climbing on Tuesday and is set to snap a bruising seven-session losing streak.
The stock shed 21% during that period, creating a juicy buying opportunity for investors, according to Macquarie analysts led by Paul Golding. They wrote in a Monday note to clients that SpaceX’s SPCX “story” is virtually unchanged even as its stock has taken a beating.
Space Exploration Technologies (SPCX +4.66%) has transformed the aerospace industry by pioneering reusable rocket technology and its Starlink network of broadband internet satellites. Building on its innovations in launch services and satellite connectivity, SpaceX is now aggressively expanding into artificial intelligence (AI) infrastructure.
The company is building large-scale compute capacity to support model training and inference, aiming to become a competitive provider of sovereign, scalable AI platforms serving both commercial enterprises and the U.S. government.
Image source: The Motley Fool.
AI infrastructure is an expensive pursuit SpaceX's S-1 filing underscored the demanding economics of its AI vision. Data center build-outs require enormous up-front investments in specialized hardware, power infrastructure, and supporting networks.
The AI cloud computing landscape is fiercely competitive, and dominated by established hyperscalers such as Amazon Web Services, Alphabet's Google Cloud Platform, and Microsoft Azure. Moreover, emerging neocloud providers like CoreWeave and Nebius Group add further pressure through specialized offerings and aggressive pricing. For SpaceX, meanwhile, AI remains an unproven business. In 2025, its AI segment posted an operating loss of $6.4 billion on revenue of just $3.2 billion.
Murmurings of a deal with the Pentagon According to articles published by The Wall Street Journal and Reuters, SpaceX is in discussions with the Department of Defense about a potential multibillion-dollar capacity agreement. Such a partnership would align logically with the company's existing government relationships, which include deals with NASA and the U.S. Space Force.
Both the Biden and Trump administrations have emphasized advancing American technological leadership. That premise supports the plausibility of closer collaboration between the government and SpaceX for managing AI workloads. The company's proven ability to deliver on high-stakes national security projects makes it a reasonable choice for handling classified AI needs alongside legacy providers.
SpaceX has shown some AI-driven growth, but uncertainty remains Over the last month, SpaceX has signed capacity agreements worth up to $82 billion with Anthropic, Google Cloud, and Reflection AI. Against this backdrop, adding the Pentagon as an AI customer could be a natural extension of its existing services.
However, the Defense Department maintains long-standing partnerships with the cloud hyperscalers, and any new deal it might ink with SpaceX remains speculative.
Even so, SpaceX has demonstrated that it can compete credibly in the AI infrastructure arena. Should a Defense Department deal come to fruition, it would significantly strengthen the company's credentials and accelerate its efforts to become a leading sovereign AI platform.
Adam Spatacco has positions in Alphabet, Amazon, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, and Microsoft. The Motley Fool has a disclosure policy.
With Space Exploration Technologies Corp. (NASDAQ: SPCX) set to report its first earnings as a publicly traded company on August 4, over 1.37 billion shares of SpaceX stock are scheduled to unlock on August 6, 2026
Two days after the company’s earnings report, 20% of locked-up SpaceX stock, representing about 911.5 million shares, will enter the tradable float, according to the S-1 filing. An additional 10% tranche, which is around 455.8 million SpaceX shares, may also unlock on the same date only if the stock trades at least 30% above the $135 IPO price for at least 5 of the 10 consecutive trading days ending on and including the earnings release date,
As SPCX traded at about $128.97 on July 21, the upcoming August 6 unlock wave is valued at more than $175 billion at press time. A further 7%, amounting to 319 million SpaceX shares, valued at approximately $40.8 billion, is scheduled to unlock around August 21.
Later on September 10, the company will release 7%, or about 319 million shares, also valued at $40.8 billion at the time of reporting. Currently, 555 million shares, or about 5% of the 13 billion SpaceX shares, are available in the public float.
Meanwhile, Elon Musk’s 6.4 billion SpaceX shares remain subject to a separate extended lock-up until June 2027, with no early release provisions.
What’s the impact of upcoming unlocks on SpaceX stock price? The upcoming SpaceX stock unlocks could increase selling pressure amid more than a 36% selloff since the all-time high (ATH).
SpaceX stock price chart. Source: Finbold However, SpaceX has received a bullish long-term projection from Wall Street analysts, as Finbold reported. Nonetheless, with the company’s quarterly earnings forecasts still unknown, SpaceX stock could face heightened volatility in the near term fueled by the upcoming share unlocks.
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Apple is launching a device leasing program called ‘Apple Upgrade’ on July 28 in the US to boost sales, Bloomberg News reported on Tuesday, citing people with knowledge of the matter.
The new service arrives as Apple has raised prices on its iPads, MacBooks and other devices except the iPhone, no longer able to shield customers from surging memory and storage chip costs driven by the AI industry’s data-center buildout.
Apple Upgrade will support most iPhone, Mac, iPad and Apple Watch models and the company is partnering with Klarna Group as the financial backer for the program, the report said.
Apple Upgrade will support most iPhone, Mac, iPad and Apple Watch models, according to Bloomberg. Getty Images It will function as a subscription, allowing users to pay off their device early, switch to a new model before their term ends, or retain the device after the leasing period concludes, Bloomberg reported.
The service will be available in both Apple’s physical retail stores and online.
Apple intends to market the program as offering lower payments than its existing financing options, the report said.
The company plans to end new enrollments in its current iPhone payment plans — the iPhone Upgrade Program and standard financing — to clear the way for the new Apple Upgrade initiative.
Unlike the current iPhone Upgrade Program, Apple Upgrade will not include AppleCare.
Some devices, including the Apple Watch SE, the entry-level iPad, the iPhone 16 and the MacBook Neo, will not be eligible for the program, the report said.
Apple Upgrade will be available in the tech giant’s physical retail stores and online. Business and education purchases will also be excluded, according to Bloomberg.
Both Apple and Klarna did not immediately respond to Reuters’ request for comment.
Apple is reportedly teaming up with deferred payment processor Klarna to launch a new lease-to-own program for its devices.
Bloomberg reported Tuesday that the program — dubbed Apple Upgrade — is set to launch next Tuesday, July 28. It will allow consumers to pay for their purchases over multi-year periods, including iPhones, iPads, Macs, and Apple Watches.
Bloomberg writes that the lease term for iPhones and Apple Watches will be up to 24 months, while leases for Macs and iPads will be up to 36 months. The devices can either be kept or returned at the end of the leasing period, while upgrades to new devices will also be available (hence the name of the program). The report notes vaguely that, in some cases, “transactions will incur an additional fee.”
Apple already has a similar program called iPhone Upgrade, although the company plans to stop allowing new customer sign-ups to instead build out the broader, more inclusive Apple Upgrade program, the report said.
A leasing program is an obvious strategy for Apple at this point. The iPhone maker has been battling supply chain issues wrought by “RAMageddon” — the industry-wide shortage of memory chips that is driving up the price of hardware. Those shortages have been driven largely by the AI industry, which is gobbling up so much memory that it’s not leaving much for the rest of us.
To deal with these issues, Apple recently announced that it would be raising prices, and Upgrade clearly seems designed to make those hiked prices more palatable to consumers.
TechCrunch reached out to Apple and Klarna for more information.
Overall, the new program seems like a shrewd move for Apple, which is currently facing a hectic transitional period. As new CEO John Ternus takes the reins, the company also entered into a legal battle with AI startup superstar OpenAI — suing the company for alleged trade theft.
In short: The company has its hands full, and anything that can shore up sales and keep the business headed in the right direction is worth trying.
When you purchase through links in our articles, we may earn a small commission. This doesn’t affect our editorial independence.
Lucas is a senior writer at TechCrunch, where he covers artificial intelligence, consumer tech, and startups. He previously covered AI and cybersecurity at Gizmodo. You can contact Lucas by emailing [email protected].
Tesla Inc (NASDAQ:TSLA) said it will roll out a new software update this summer that lets its Grok AI assistant make phone calls, play music, adjust cabin climate and open the glovebox by voice command.
The update also allows drivers to view and share self-driving statistics through Tesla's mobile app, and gives Navigation the ability to suggest routine destinations and prioritize routes drivers have previously taken.
Other features include the ability to set a desired arrival battery level from the app, upload custom vehicle wraps without a USB drive, and lock rear display controls from the front screen. Tesla's in-car Caraoke feature will add scoring and saved high scores.
The company also plans to add Supercharger name search, queue controls for Apple Music, adjustable zoom for the self-driving visualization display, browser camera and microphone support, and new animations for the Model 3 and Model Y.
Image Credits:Tim Goessman / Bloomberg / Getty Images Tesla has brought an unspecified number of its unsupervised Model Y SUVs to Orlando and Tampa, just one day ahead of the company’s scheduled second-quarter earnings call. That marks the third city in Florida where Tesla is trialing its nascent robotaxi service, following a small launch in Miami a few weeks ago.
The two new cities appear to have fairly small operational areas, and Tesla did not offer any further details about the launch. As some fans have noticed, Tesla announced autonomous fleets in Dallas and Houston before its first-quarter earnings release but has yet to scale those operations. The company disbanded its press office years ago.
Tesla has taken a far slower approach to standing up a commercial robotaxi service than it has promised investors. CEO Elon Musk, for instance, said repeatedly that Tesla’s robotaxis would serve half the U.S. population by the end of 2025.
Musk offered more metered comments earlier this year on Tesla’s first-quarter call. But the company may get a big lift from the Trump administration, as last month the Department of Transportation proposed a rule change that would no longer require brake pedals be built into cars that are designed to be autonomous. If adopted, that could clear the way for Tesla to try and deploy the dozens of two-seater Cybercabs that it has been staging in cities across the country.
Tesla TSLA shares are inching higher ahead of the company’s second-quarter earnings scheduled to be released after market close on Wednesday, July 22nd.
Consensus is for the EV specialist to post a nearly 15% year-on-year increase in earnings per share (EPS) to $0.31 on revenue of at least $25.7 billion – which would represent a 16% jump from last year.
While Tesla stock remains down significantly versus the start of 2026, options pricing suggests it’s poised to reclaim some of that loss after the Q2 print this week.
Heading into Tesla’s quarterly earnings, the put-to-call ratio on options contracts expiring July 24th sits at 0.54, indicating a strong bullish skew.
According to Barchart, the upper price on those contracts sits at just over $401 currently, signaling potential for a 5.36% rally in TSLA shares through the end of this week.
Much of the derivatives market’s confidence may be traced back to Tesla’s strong delivery report.
Earlier this month, billionaire Elon Musk’s company said it delivered 480,126 vehicles in its fiscal Q2, up 25% versus the same quarter of 2025.
Analysts at Cantor Fitzgerald seem to agree with options traders on Tesla shares.
In a note to clients this week, they maintained an Overweight rating on the EV firm and a strongly bullish $510 price target.
Their positive view is rooted in its high-margin Cybercab business.
“We believe TSLA will have the ability to scale rapidly following commercialization (despite the delayed expansion) and capture meaningful market share,” the firm’s analysts wrote.
Amidst accelerating milestones for the Optimus Gen 3 humanoid robots, Cantor Fitzgerald remains constructive on Tesla's ability to unlock recurring software economics as autonomy commercializes.
From a technical perspective, the EV stock is currently trading a little under its 20-day MA – with a decisive break above the $395 level expected to boost upward momentum in the near-term.
While top-line delivery growth provides a solid backdrop, Street’s post-earnings focus will quickly shift to automotive gross margins and capital spending efficiency.
Investors are eager to see if manufacturing scale, operational discipline, and localized supply chain efficiencies can offset pricing pressures and raw material cost headwinds, protecting operational profitability.
Beyond core auto metrics, management’s commentary on the earnings call regarding real-world AI investments – specifically concrete timelines for Full Self-Driving (FSD) expansion and scaling capital expenditure for data center compute – will likely act as a catalyst.
A decisive beat on core margins paired with confident guidance on physical AI infrastructure could give TSLA stock the momentum needed to clear technical resistance levels.
Heading into the earnings release, Wall Street remains bullish on Tesla Inc, with a “Moderate Buy” rating coupled with a $418 mean price target.
At $369.57, Tesla (NASDAQ:TSLA | TSLA Price Prediction) looks overvalued, because the multiple asks investors to underwrite three uninvented businesses while the core auto operation decelerates. With Q2 results imminent, the gap between narrative and accounting has rarely been wider.
Tesla still earns most of its money making electric vehicles, with a growing energy storage arm and fast-scaling services including Full Self-Driving subscriptions. The story running the stock, however, is Robotaxi, Optimus, and in-house AI silicon. Shares are down 17.82% year to date and sit below both the 50-day ($409.80) and 200-day ($417.05) moving averages, well off the 52-week high of $498.83.
Why the Margin Recovery Could Reignite the Story Q1 2026 delivered the operational turn bulls have been waiting for. EPS came in at $0.41 versus $0.3592 expected, revenue grew 15.78% year over year, and automotive gross margin snapped back to 21.1% from 16.2%. Services revenue jumped 42%, and FSD paid subscribers reached roughly 1.3 million, up 51% year over year.
The balance sheet remains a fortress at $44.7 billion in cash against modest debt, and prediction markets assign an 80% probability of another earnings beat on July 22. Management believes Optimus will be “the biggest product ever”, and if even a fraction of that optionality clears, today’s price will look cheap.
Why the Accounting Refuses to Justify the Multiple Strip out the speculative narratives and the fundamentals are those of an increasingly commoditized auto manufacturer. FY2025 net income fell 46.79%, Q4 deliveries dropped 16% to 418,227 units, and regulatory credits keep shrinking. Operating expenses grew 37% year over year in Q1 on AI spend and CEO stock-based comp.
Valuation sits at 346 trailing P/E and 167 forward P/E, with a PEG of 5 and EV/EBITDA of 116. Prediction markets price Optimus release by year-end at just 16%, California robotaxi at 18.5%, and Robovan orders at 7%. CFO Vaibhav Taneja guided to over $25 billion of CapEx and negative free cash flow for the rest of the year.
Why Patience Might Beat Conviction Either Way The Hold argument rests on catalyst density. Q2 deliveries returned to growth, an EU FSD expansion is progressing, and AI5 tape-out cleared in April. Analyst consensus splits 23 Buy/Strong Buy, 18 Hold, and 6 Sell/Strong Sell across 47 shops, defining an unresolved debate.
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Musk conceded Optimus production this year is “impossible to predict” and Robotaxi revenue will not be “super material this year”. Waiting one or two prints for hard Optimus unit economics, Robotaxi safety data, and clarity on AI CapEx payback lets investors avoid paying peak narrative premium ahead of proof.
What the Tape and the Street Actually Say Shares currently trade near $369.57 against an average analyst price target of $425.22, implying roughly 15% upside from a pool of 47 analysts. Targets are one data point among many.
Year to date, TSLA is down 17.82% while the S&P 500 is up 8.82%. Over one year, TSLA is up 12.11% versus 18.25% for the index. Prediction markets give the stock only a 48% chance of closing July above $370.
Why $370 Looks Stretched At $370, Tesla is a Sell.
The path to further downside is straightforward. Consensus already models roughly $27.6 billion in Q2 revenue and $1.27 billion in net income, and CapEx guidance points to negative free cash flow into 2027. If Q2 confirms an earnings beat but defers Optimus unit economics and California robotaxi timing, the multiple has room to compress toward the forward P/E of 167, still egregious but painful from here.
Likely triggers over the next two quarters are further regulatory credit erosion, a fifth consecutive quarter of operating expense growth above 30%, and continued inventory build from the current 27 days of supply. A hard Optimus production milestone, an approved California robotaxi permit, or genuine FSD margin disclosure would invalidate the thesis.
The core problem is that owners at $370 are paying an enterprise software multiple for a business currently generating auto-manufacturer margins, and Musk himself will not commit to when that changes. At current levels, the risk/reward skews unfavorably.
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Options traders are betting Tesla could see its biggest post-earnings move in a year when the electric auto giant reports on Wednesday after the bell.
Current prices for at-the-money puts and calls are implying a 5.76% move, which is the largest implied move since traders priced in a 6% swing back in October 2025. It would be the largest realized move since last July. On Tuesday, options flow leaned bullish, with traders having bought 244,000 calls compared to 116,000 puts through midday, while calls accounted for more than two-thirds of total premium traded.
The top three most active contracts by volume in Tesla were calls, with the most premium being spent by traders in the 380-calls expiring Friday. Traders spent more than $15 million on those nearly at-the-money calls, which commanded around $11 per contract, meaning they would require a 3% move higher by the end of the week to become profitable.
While options traders are expecting a large move, Tesla's stock has historically experienced muted moves on earnings days. In fact, over the past four quarters, the stock has experienced a median move of just 3.5%, according to CBOE data.
Also, on the radar for Musk-centric traders will be SpaceX's first earnings report since last month's initial public offering. That potential wildcard for the market will occur on Aug. 4. The options market is currently implying a 12% move in either direction.
"If you want to be aggressive you could argue [Tesla is] hanging on support and take the long side, which I am longer term, but it's more or less been rangebound since the start of the year," Gianni Di Poce, instructor at TheoTrade, said by phone. "The whole SpaceX thing is weighing on it, people are trying to figure out which to own and if they're going to merge."
Following its historic June IPO, SpaceX shares raced toward a $2 trillion valuation. But the stock has since fallen sharply, and the company's valuation now stands just under $1.7 trillion, just ahead of Tesla's $1.4 trillion.
Can Google make artificial intelligence cheaper to run?
• Alphabet stock is trading at elevated levels. What’s the outlook for GOOG shares?
That could make Alphabet’s earnings call about far more than revenue and earnings per share.
The AI Race Is Shifting To EfficiencyOver the past two years, investors have largely measured AI leadership by one metric: spending.
Frozen v2 hints at the next phase.
According to the report, Google engineers believe the new chip could deliver between six and 10 times more tokens per unit of power than the company’s latest Tensor Processing Units (TPUs) by embedding portions of Gemini’s architecture directly into the silicon.
If those projections hold, the implications extend well beyond Google’s chip business.
Running AI models — known as inference — is quickly becoming one of the largest operating expenses for hyperscalers as millions of users generate prompts every day. Improving efficiency could allow Google to serve more AI requests while consuming less power and fewer computing resources.
Why Investors Should Listen CloselyThat makes Alphabet’s earnings call an opportunity for management to discuss more than just AI investments.
Investors will be listening for any commentary on custom silicon, inference workloads, TPU deployment and capital spending. Even modest updates could provide clues about how Google plans to manage AI costs as Gemini adoption expands.
The report also comes as investors increasingly question whether hyperscalers can continue raising AI capital expenditures indefinitely. If Google can improve AI economics through better hardware rather than simply buying more compute, it could reshape how Wall Street evaluates future AI spending.
The Bigger Story Isn’t Another AI ChipAlphabet has built custom AI chips for years, making Frozen v2 less significant as a product announcement than as a strategic signal.
The next competitive advantage in AI may not come from training ever-larger models. It may come from making those models dramatically cheaper to operate.
That’s why this week’s earnings call matters.
Wall Street already knows Google is spending aggressively to compete in AI. What investors don’t yet know is whether the company has found a way to generate more AI output without proportionally increasing its infrastructure costs.
If Frozen v2 is part of that answer, Alphabet’s earnings could reveal that the next battle in AI isn’t just about building smarter models — it’s about building more efficient ones.
Image via Shutterstock
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Alphabet (NASDAQ:GOOGL | GOOGL Price Prediction) looks compelling at $351.99, because the two-year Wall Street panic that conversational AI would cannibalize Google Search has been decisively invalidated by the numbers. For 24 months, the bear case rested on a single fear: that ChatGPT and its peers would siphon queries away from the world’s dominant ad engine. The most recent quarter shows the opposite happening in real time.
Alphabet is the parent of Google Search, YouTube, Google Cloud, Android, and Waymo. The stock has ripped 90.75% over the past year as investors reprocessed the AI threat as an AI tailwind. The question now is whether the current price already reflects that reappraisal, or whether more upside remains.
Why the AI Search Fear Just Died Q1 2026 demolished the bear thesis. Google Search & Other revenue hit $60.40 billion, up 19% year over year, with CEO Sundar Pichai confirming that “AI continues to drive search usage and queries are at an all-time high.”. Gemini-powered AI Overviews are expanding commercial ad inventory at higher click-through yields, Gemini-powered AI Overviews are expanding commercial ad inventory at higher click-through yields, with Hilton EMEA reportedly capturing one-third more clicks for one-fifth of the spend.
Google Cloud revenue grew 63% to $20.03 billion, operating margin expanded to 32.9% from 17.8%, and backlog nearly doubled quarter on quarter to over $460 billion. EPS came in at $5.11 versus $2.6327 estimated, a 94.1% beat, the fourth consecutive beat.
Why the Bears Still Have a Case Capex is the counterweight. Q1 capital expenditures more than doubled to $35.67 billion, free cash flow collapsed 46.63%, and management raised full-year 2026 capex guidance to $180 billion to $190 billion, with 2027 expected higher. Return on that infrastructure spend remains unproven quarter to quarter.
Antitrust overhang persists. Google Network revenue declined year over year, and Q1 net income was flattered by $36.91 billion in net unrealized gains on equity securities, introducing earnings volatility. Insider activity skews net selling across 181 recent insider transactions.
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Why Patience Might Still Win The Hold argument rests on entry timing. Shares are down 4.36% over the past month and sit 6% below the 52-week high of $408.37. With earnings due imminently and Polymarket assigning only a 59.5% probability of closing above $350 by month end, waiting for the print could offer a cleaner entry if capex commentary spooks the tape.
What the Numbers Actually Say Alphabet trades at $351.99 against a consensus analyst target of $433.51, implying 23.03% upside. Coverage is overwhelmingly positive with 14 Strong Buys, 43 Buys, 7 Holds, and zero Sell ratings. Valuation looks reasonable for the growth on offer: 26 trailing P/E, 25 forward P/E, with a PEG of 1.365. Year to date GOOGL is up 12.6%, while the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) has gained roughly 3.3% since the Q1 filing, meaning the stock has lagged the broad market since its blowout report.
The Verdict at $350: Why the Buyers Win At $351.99, the setup for Alphabet looks favorable. Three simultaneous engines are all accelerating. Search at 19% growth invalidates the disruption narrative that suppressed the multiple for two years. Cloud at 63% growth with a $460 billion backlog gives Alphabet a second megacap growth business generating tripled operating income. Gemini, processing 16 billion tokens per minute via API, monetizes the same AI wave the market once feared.
A forward P/E of 25 for a business compounding revenue at 22% and expanding operating margins to 36.1% is a reasonable price for buyers. The thesis breaks only if capex returns disappoint by 2027 or an antitrust remedy structurally changes distribution. Both remain absent from the current trajectory.
Watch three things quarter by quarter: Cloud operating margin, Search query growth, and capex efficiency signals. If those hold, the analyst target north of $430 becomes the floor rather than the ceiling. The fear that defined Alphabet’s discount for two years is empirically dead, and the stock has not yet fully repriced.
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NEW YORK, July 21, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP is investigating claims on behalf of investors of Alphabet Inc. (“Alphabet” or the “Company”) (NASDAQ: GOOG). Such investors are advised to contact Danielle Peyton at [email protected] or 646-581-9980, ext. 7980.
The investigation concerns whether Alphabet and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
[Click here for information about joining the class action]
On July 16, 2026, Bloomberg reported that Alphabet’s Google is “months behind schedule on delivering Gemini 3.5 Pro , its most powerful flagship AI model” due to the Company's ongoing coding efforts. Specifically, the article reported that “[l]ate last month, Google updated the data being used to train Gemini in an attempt to improve [its] skills, but the results were disappointing.”
On this news, Alphabet’s stock price fell $16.40 per share, or 4.4%, to close at $353.81 per share on July 16, 2026.
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On Tuesday, Google DeepMind released Gemini 3.6 Flash, 3.5 Flash-Lite, and 3.5 Flash Cyber. Gemini 3.6 Flash is Google’s “workhorse model” that promises improved capabilities in coding, knowledge work, and multimodal performance while reducing token usage by up to 17%, making it cheaper than its predecessor 3.5 Flash.
Gemini 3.5 Flash-Lite is the most cost-effective model in the class, and 3.5 Flash Cyber is a specialized model that was fine-tuned for finding and fixing cybersecurity vulnerabilities at a decent price point. This model will be exclusively available to governments and trusted partners as part of a limited access pilot program, according to Google.
Google says the focus on these releases is to deliver efficiency, latency, and reliability to customers that are building AI agents at scale.
The launch is notable not just for what Google shipped — cheaper, faster models optimized for coding, efficiency, and cybersecurity — but also for what it didn’t. The update doesn’t include the long-anticipated update to Google’s flagship model, Gemini Pro, which was last updated in February.
In the time since that launch, OpenAI has released GPT-5.5 and begun rolling out GPT-5.6, while Anthropic has launched Claude Opus 4.8 and Claude Sonnet 5 and has expanded access to its frontier Fable 5 model, highlighting the intense release pace of the rival labs.
Google teased the release of Pro as part of the 3.5 Flash release in May, saying the Pro version was “already being used internally, and we look forward to rolling it out next month.” Last week, Bloomberg reported that Google was facing internal delays in launching the 3.5 Pro as it struggled to meet internal performance goals.
Gemini Pro models are generally Google’s highest-capability offerings for complex reasoning and coding tasks, while Flash models prioritize lower cost and faster response times for production applications.
Google DeepMind product lead Logan Kilpatrick said Tuesday that the company is currently testing Gemini 3.5 Pro with partners and hopes to “land soon.” He also noted that the team has started its most ambitious pre-training run yet for Gemini 4.
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It is rolling out three new Gemini models as Google pushes to strengthen its AI lineup, lower usage costs and compete more directly in cybersecurity.
• What’s ahead for GOOG stock?
Google Targets CybersecurityGoogle is launching Gemini 3.5 Flash Cyber, a specialized model built to detect and patch software vulnerabilities.
The model will initially be available only to governments and trusted partners through a limited-access pilot. Google said it runs at a lower price per token than larger models, which could help the company compete more directly with Anthropic’s early lead in automated code defense.
Google is also releasing Gemini 3.6 Flash, which improves coding, multimodal and knowledge-work performance while using up to 17% fewer tokens than the previous model.
Gemini 3.5 Flash-Lite is the fastest and lowest-cost model in the 3.5 family, designed for high-volume workloads and smaller tasks within larger AI-agent systems.
AI Race IntensifiesGoogle is also testing Gemini 3.5 Pro with partners and has started its largest-ever pre-training run for Gemini 4, offering more visibility into its AI roadmap after questions about product delays.
Technical AnalysisFrom a trend perspective, GOOG is still holding a longer-term uptrend (up 82.57% over the past 12 months), but the near-term tape is choppier: the stock is trading 1.1% below its 20-day SMA and 4.6% below its 50-day SMA, while staying 1.7% above the 100-day SMA and 8.4% above the 200-day SMA.
Earnings & Analyst OutlookThe countdown is on: Alphabet is set to report earnings on July 22 (confirmed).
EPS Estimate: $2.88 (Up from $2.31 year-over-year) Revenue Estimate: $113.63 billion (Up from $96.43 billion YoY) Valuation: P/E of 26.8x (Indicates premium valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $429.67. Recent analyst moves include:
TD Cowen: Buy (Raises forecast to $475 on June 9) Oppenheimer: Outperform (Raises forecast to $445 on May 15) JP Morgan: Overweight (Raises forecast to $460 on April 30) Top ETF ExposureSignificance: Because GOOG carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely trigger automatic buying or selling of the stock.
GOOG, GOOGL Price ActionPrice Action: Alphabet (GOOG) shares were down 0.89% at $348.23 and Alphabet (GOOGL) shares were down 0.83% at $349.08 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo via Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Alphabet Inc. GOOGL will report second-quarter earnings on Wednesday after the closing bell, with investors closely watching whether the Google parent can justify its growing investments in artificial intelligence amid delays to a key AI model and intensifying competition.
As the first of the "Magnificent Seven" technology companies to report earnings this season, Alphabet's results are expected to provide an early indication of demand for AI infrastructure and whether large capital investments are translating into business growth.
While the company's cloud business has remained a key growth driver, recent delays to its Gemini 3.5 Pro model have added to investor concerns about Alphabet's competitive position in the AI race.
According to LSEG data, Alphabet is expected to report second-quarter revenue of $116.93 billion, representing year-over-year growth of 21.3%.
Cloud revenue is expected to maintain growth of about 64%, while advertising revenue is forecast to increase 13.7%.
Benzinga Pro estimates second-quarter revenue at $113.6 billion and earnings per share of $2.87, compared with revenue of $96.4 billion and EPS of $2.31 in the same period last year.
Analysts also expect Google Cloud revenue to continue expanding rapidly, with Zacks estimating sales of $22.79 billion, up from $13.62 billion a year earlier.
Alphabet delayed the launch of Gemini 3.5 Pro from June.
The flagship model is designed to strengthen the company's position in AI coding tools and agentic AI applications, two of the fastest-growing areas of the artificial intelligence market.
The delay comes as Chinese open-source AI models continue to compete more aggressively with leading US developers and as investors increasingly question whether large technology companies are generating sufficient returns from heavy AI spending.
Dave Wagner, portfolio manager at Aptus Capital Advisors, said in a Reuters report, "While Google is missing the boat on AI coding and that's a very real growing concern ... Google's strategy is all about the ecosystem."
Guggenheim analyst Michael Morris maintained a Buy rating and a $450 price target on Alphabet ahead of the earnings release.
"Competitive noise creates attractive entry for full-stack AI leader," Morris said.
Freedom Capital Markets Chief Market Strategist Jay Woods also pointed to the Gemini delay as an important issue heading into earnings, saying investors will be looking for updates on the company's AI strategy.
"Watch for updates on Gemini and if the company’s massive AI spending continues," Woods said. "With billions being poured into chips, data centers, and Gemini development, Wall Street wants evidence that AI is driving growth rather than simply driving expenses."
Cloud growth and AI investments remain key focusAlphabet raised its 2026 capital expenditure guidance in April to between $180 billion and $190 billion.
The company has also announced plans to raise approximately $85 billion through equity offerings, including an investment from Berkshire Hathaway.
The company's cloud business continues to benefit from demand for AI infrastructure and custom AI chips, including multi-billion-dollar agreements with Meta Platforms and Anthropic.
Beyond the headline financial results, investors are expected to focus on Google Search advertising, YouTube advertising, Google Cloud performance, operating margins and capital expenditure plans.
Management commentary on Gemini, AI monetization and infrastructure investments will also be closely monitored as investors assess whether Alphabet's AI strategy is strengthening its broader business ecosystem.
Alphabet shares have declined about 9% since late April despite reporting a 63% increase in cloud sales during the previous quarter.
However, the stock remains nearly 13% higher for the year, making it the second-best performer among the Magnificent Seven group.
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Amazon Leo Satellite Connectivity signage is displayed during the annual Consumer Electronics Show (CES) in Las Vegas, Nevada on January 6, 2026. Patrick T. Fallon / AFP via Getty Images Amazon's Leo satellite business has appointed its first dedicated finance VP, another sign the company is building the satellite venture into a more independent business.
Mike Recupero, who most recently served as Alexa's finance chief, was named Leo's VP of finance earlier this month, according to people familiar with the move. The newly created role makes him the first VP solely overseeing Leo's finances.
Previously, Recupero spent about a year as GameStop's CFO after serving as finance chief for several Amazon businesses, including Prime Video and North America retail.
Until now, Leo's finances were overseen by executives who also managed Alexa, supported by more junior finance leaders.
The appointment reflects how Amazon is assembling a seasoned leadership team around Leo, formerly known as Project Kuiper.
Over the past two years, Leo has also recruited former GitLab chief revenue officer Chris Weber as vice president of sales and marketing and former T-Mobile executive Clint Patterson as chief marketing officer. VP of technology Rajeev Badyal leads the overall Leo business and reports to Panos Panay, SVP of devices, Alexa, and Leo.
Recupero will primarily oversee Leo's multibillion-dollar infrastructure buildout, including satellite manufacturing and launches, as well as the integration of Globalstar, the satellite communications company Amazon is acquiring for $11.6 billion, the people said.
Amit Singh has replaced Recupero as Alexa's finance lead.
Leo is one of Amazon's biggest long-term bets beyond its core retail and cloud businesses. CEO Andy Jassy previously said Leo already had a series of revenue commitments from enterprise and government customers and is expected to generate meaningful growth and returns for Amazon. The company said earlier this month that Leo has completed 14 missions and launched 396 satellites so far, making it the third-largest satellite constellation in orbit.
Wall Street is also growing more bullish on the business. Bank of America recently estimated Leo could generate $20 billion to $25 billion in annual revenue by 2032 and eventually be worth $200 billion to $275 billion.
The growing enthusiasm has not eliminated the risks. A Blue Origin rocket that Amazon plans to use for future Leo missions exploded during a ground test in June. Leo's VP Badyal sought to reassure employees at the time, saying such setbacks are an expected part of spaceflight and that the company would continue pressing ahead.
Amazon declined to comment.
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Eugene is Business Insider’s Chief Tech Correspondent, where he leads coverage of Amazon. His reporting spans the company’s retail operations, AWS, Alexa, and its secretive internal work culture.Previously, he worked at CNBC, Fortune Magazine Korea, and Japan's Yomiuri Shimbun. He holds degrees from NYU and Columbia University’s Graduate School of Journalism.In 2022, Eugene broke a story uncovering Amazon’s practice of deceptively enrolling customers in Prime and deliberately making cancellation difficult. A year later, the Federal Trade Commission sued the company, citing his reporting. That case culminated in a record $2.5 billion settlement in 2025.His reporting has earned multiple honors, including the SF Press Club’s Bay Area Journalism Award and SPJ NorCal’s Excellence in Journalism Award.Eugene lives in the Bay Area. Contact him via email at [email protected], or Signal, Telegram, or WhatsApp at 650-942-3061. Use a personal email address, a nonwork WiFi network, and a nonwork device; here's our guide to sharing information securely. ExpertiseAmazon, Jeff Bezos, Andy Jassy, e-commerce, and cloud computing.Popular ArticlesAmazon:Internal Amazon emails give an exclusive look at how CEO Andy Jassy has started to run the company, with obsessive attention to the retail business and what some employees feel is micromanagingAndy Jassy will be the next CEO of Amazon. Insiders dish on what it's like to work for Jeff Bezos' successor, who built AWS into a $40 billion business.Internal documents show Amazon has for years knowingly tricked people into signing up for Prime subscriptions. 'We have been deliberately confusing,' former employee says.Inside Amazon's flailing brick-and-mortar ambitions: missed projections, pressure to cut costs, and a war with Whole FoodsInside Amazon's complex employee-review system, where workers feel left in the dark and managers expect to give 5% of reports bad reviewsAfter 28 years, 'Day 2' finally arrives at AmazonAWS, Alexa, healthcare:Inside Amazon's struggle to break into the lucrative market for SaaS business applications, including an internal pitch to buy $38 billion HubSpotInside Amazon's struggle to crack Nvidia's AI-chip dominanceAmazon's AI data center dream runs into the reality of 'zombie' facilities, higher costs, and labor shortagesAmazon is gutting its voice assistant, Alexa. Employees describe a division in crisis and huge losses on 'a wasted opportunity.'Amazon is working on a new 'Remarkable Alexa,' but internal politics and technical issues plague the projectAmazon projected huge losses from its healthcare business in 2024, but strong sales growth, internal document reveals
My cost basis on Meta keeps climbing because I keep buying, and the reason is simple: the market is treating a compounding advertising monster like a runaway science experiment, and that gap is where my money keeps going.
Here is what I keep coming back to. Meta Platforms (NASDAQ:META | META Price Prediction) closed at $645.85 on July 20, down 1.99% YTD, while the business behind those shares delivered Q1 2026 EPS of $10.44 against $6.66 expected, a 56.79% beat and the fifth straight quarter topping consensus. Revenue grew 33.08% YoY to $56.31 billion. Net income jumped 60.86%. Operating margin sits at 41.4%. Return on equity is 30.24%. That is a compounding machine whose stock is confused about what it owns.
The Disconnect Is Priced In Meta trades at a P/E of 23 and a forward P/E of 21. Free cash flow yield is 3.25%, earnings yield 4.26%. The ad engine itself keeps widening: impressions +19% YoY, average price per ad +12% YoY, with 3.56 billion daily active people across the Family of Apps. Priced like a mature utility, selling attention on the largest advertising surface in human history.
The balance sheet supports the buildout. Debt-to-equity of 0.386, net debt/EBITDA 0.47, interest coverage 71.48x. Full-year 2025 operating cash flow of $115.8 billion against 2026 capex guidance of $125-145 billion means Meta funds its AI push from its own cash register. Capital returns kept flowing: $26.25 billion in buybacks in 2025 and a $0.53 quarterly dividend. CEO Mark Zuckerberg framed Q1 as “a milestone quarter with strong momentum across our apps and the release of our first model from Meta Superintelligence Labs.”
Why Not Microsoft I own some Microsoft (NASDAQ:MSFT). When the same dollar has to choose, Meta wins on the numbers today. Microsoft trades at a P/E of 29 versus Meta’s 23. Its P/FCF is 41.73 versus Meta’s 30.76. Earnings yield of 3.41% lags Meta’s 4.26%. Meta grew Q1 revenue 33.1% YoY, Microsoft grew 18.3%. Meta’s net income rose 60.86%, Microsoft’s 23.06%. YTD, Microsoft is down 16.45%, and the valuation gap has widened further. Microsoft pays a 0.81% yield to Meta’s 0.375%, which I take in the sleeve where I own MSFT. My marginal dollar still goes to Meta.
The Real Risk Capex. FY2026 guidance was raised to $125-145 billion. Reality Labs alone lost $4.03 billion in Q1. If the return on that spend disappoints, free cash flow compresses and today’s cheap multiple looks ordinary. I watch it. What keeps me buying is that the ad engine is already monetizing AI: better targeting is why price per ad grew 12% and impressions grew 19% in the same quarter. The return is showing up in the reported numbers.
Meta prints cash, dominates attention, and trades like a value stock. As long as those three sentences remain true together, my finger stays on the buy button.
LOS ANGELES, July 21, 2026 (GLOBE NEWSWIRE) -- Glancy Prongay Wolke & Rotter LLP reminds investors of the upcoming August 11, 2026 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Microsoft Corporation (“Microsoft” or the “Company”) (NASDAQ: MSFT) common stock between May 1, 2025 and January 28, 2026, inclusive (the “Class Period”).
IF YOU SUFFERED A LOSS ON YOUR MICROSOFT INVESTMENTS, CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS UNDER THE FEDERAL SECURITIES LAWS.
What Happened?
On January 28, 2026, Microsoft announced disappointing results for its second quarter of fiscal 2026, revealing that growth of its cloud computing platform, Azure, had slowed suddenly and fallen below analyst expectations due primarily to computational capacity constraints, as the Company had diverted central processing unit and graphics processing unit capacity to applications for its generative AI chatbot, Copilot, and AI-related research and development. The Company also revealed that its capital expenditures had increased to $37.5 billion during the quarter, causing the Company’s capital expenditures for the first six months of fiscal 2026 to expand to $72.4 billion compared to $88.2 billion for the entirety of fiscal 2025, largely due to AI-related research and development and Copilot development and capacity buildout costs. Additionally, Microsoft disclosed that the amount of paying users of Copilot was well below analyst estimates.
On this news, Microsoft’s stock price fell $48.13, or 9.99%, to close at $433.50 per share on January 29, 2026, thereby injuring investors.
What Is The Lawsuit About?
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Microsoft’s Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (2) that Microsoft’s flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (3) that Microsoft needed to increase by billions of dollars its capital expenditures and divert GPU and CPU capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related R&D; (4) that, as a result of the foregoing, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and the Company’s Copilot offerings had lost market share to rival products, a trend that was increasing; and (5) as a result, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times.
If you purchased or otherwise acquired Microsoft common stock during the Class Period, you may move the Court no later than August 11, 2026 to request appointment as lead plaintiff in this putative class action lawsuit.
Contact Us To Participate or Learn More:
If you wish to learn more about this action, or if you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact us:
Charles Linehan, Esq.,
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100,
Los Angeles California 90067
Email: [email protected]
Telephone: 310-201-9150,
Toll-Free: 888-773-9224
Visit our website at www.glancylaw.com.
Follow us for updates on LinkedIn, Twitter, or Facebook.
If you inquire by email, please include your mailing address, telephone number and number of shares purchased.
To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Contact Us:
Glancy Prongay Wolke & Rotter LLP,
1925 Century Park East, Suite 2100
Los Angeles, CA 90067
Charles Linehan
Email: [email protected]
Telephone: 310-201-9150
Toll-Free: 888-773-9224
Visit our website at: www.glancylaw.com.
