NEW YORK, Sept. 08, 2026 (GLOBE NEWSWIRE) -- SueWallSt reminds purchasers of Alibaba Group Holding Limited (NYSE: BABA) securities of a pending securities class action brought on behalf of investors who acquired BABA securities between June 26, 2025 and June 24, 2026. Find out if you might qualify for recovery. You may also contact Joseph E. Levi, Esq. at [email protected] or (888) SueWallSt.
BABA American Depositary Shares closed at $95.07 on June 25, 2026, down from a Class Period high of $173.68 recorded on October 9, 2025, a decline of approximately $78.61 per ADS, or roughly 45%. Motions for lead plaintiff must be filed with the Court by October 5, 2026.
How Alibaba's Licensing and AI Operations Allegedly Intersected With U.S. Rules
Alibaba's online and mobile commerce operations, together with Youku's online video business, are classified in China as value-added telecommunications services, which require an operating license from the Chinese Ministry of Industry and Information Technology. As pleaded, that MIIT affiliation placed Alibaba within the definition of a "Chinese military company" under Section 1260H(g)(2) of the National Defense Authorization Act for fiscal year 2025, a classification the action contends was never disclosed to investors as a risk the Company itself faced.
Separately, plaintiffs allege that Alibaba's artificial intelligence operations involved an active, large-scale effort to access a competing U.S. model rather than the inadvertent exposure described in Company filings.
Alleged Operational Compliance Failures at Issue
Alibaba allegedly held MIIT operating licenses that, as pleaded, brought it within the FY2025 NDAA's Chinese military company definition.Company risk disclosures identified other Chinese issuers delisted from the NYSE over military-affiliation concerns, but, the action contends, omitted Alibaba's own exposure.On June 8, 2026, the U.S. Department of Defense released an updated list of Chinese military companies that included Alibaba; ADSs fell $4.69, or approximately 3.9%, over two trading days to close at $115.38 on June 10, 2026.Anthropic PBC accused operators linked to Alibaba's Qwen AI lab of conducting roughly 28.8 million exchanges with the Claude model through nearly 25,000 fraudulent accounts between April and June 2026, per Bloomberg reporting on June 24, 2026.The practice described, known as adversarial distillation, allegedly targeted software engineering and agentic reasoning capabilities.ADSs fell $2.80, or 2.7%, to $99.80 on June 24, 2026, then a further $4.73, or 4.7%, to $95.07 on June 25, 2026. Why the Operational Allegations Matter to Shareholders
The action contends that the gap between Alibaba's described AI safeguards and its alleged conduct, combined with the undisclosed regulatory classification, left shareholders exposed to risks they could not price.
"The PSLRA provides important protections for investors harmed by alleged securities violations, and this action raises significant questions about whether Alibaba's filings adequately addressed its own regulatory classification exposure. Shareholders who purchased during the Class Period may wish to review their options." -- Joseph E. Levi, Esq.
Submit your information now or call (888) SueWallSt.
WHY SUEWALLST: SueWallSt is powered by Levi & Korsinsky LLP. Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States.
Frequently Asked Questions About the BABA Lawsuit
Q: Who is eligible to join the BABA investor lawsuit? A: Investors who purchased BABA stock or securities between June 26, 2025 and June 24, 2026 and suffered financial losses may be eligible. Eligibility is based on purchase date and documented losses, not on whether you still hold the shares.
Q: What court was the BABA class action filed in? A: The case was filed in the United States District Court for the Southern District of New York, governed by the Private Securities Litigation Reform Act of 1995.
Q: What specific misstatements does the BABA lawsuit allege? A: The complaint alleges Alibaba made materially false or misleading statements regarding its status as a Chinese military company under the FY2025 NDAA and regarding the nature of unauthorized distillation of third-party AI models during the Class Period. When the Department of Defense listing and the Anthropic allegations became public, the ADS price declined.
Q: What is a lead plaintiff and why does it matter? A: A lead plaintiff is the investor appointed by the court to represent the entire class. Lead plaintiffs are typically investors with the largest documented losses. Being appointed does not increase individual recovery but gives direct oversight of how the case is run.
Q: What documents do I need to submit my information? A: Brokerage statements or trade confirmations showing purchase dates, share quantities, prices paid, and any subsequent sale dates and prices.
Q: What if I already sold my BABA shares — can I still recover losses? A: Yes. Eligibility is based on when you purchased, not whether you still hold the shares. Investors who bought during the Class Period and sold at a loss may still be eligible to participate.
Q: What if I live outside the United States? A: U.S. securities class actions generally cover purchases on U.S. exchanges regardless of the investor's country of residence.
Q: What does it cost me to participate? A: There is no upfront cost to contact the firm. Securities class actions are generally handled on a pure contingency basis, with no retainer and no out-of-pocket costs. Any attorneys' fees and expenses awarded to class counsel are subject to court approval.
, /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP announces that purchasers or acquirers of Alibaba Group Holding Limited (NYSE: BABA) publicly traded securities between June 26, 2025 and June 24, 2026, both dates inclusive (the "Class Period"), have until Monday, October 5, 2026 to seek appointment as lead plaintiff of the Alibaba class action lawsuit. Captioned Wistisen v. Alibaba Group Holding Limited, No. 26-cv-06654 (S.D.N.Y.), the Alibaba class action lawsuit charges Alibaba as well as Alibaba's Chief Executive Officer with violations of the Securities Exchange Act of 1934.
If you suffered substantial losses and wish to serve as lead plaintiff of the Alibaba class action lawsuit, please provide your information here:
You can also contact attorneys Ken Dolitsky or Michael Albert of Robbins Geller by calling 800/851-7783 or via e-mail at [email protected].
CASE ALLEGATIONS: Alibaba, through its subsidiaries, provides technology infrastructure and marketing reach to help merchants, brands, retailers, and other businesses.
The Alibaba class action lawsuit alleges that defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (i) under the National Defense Authorization Act, any entities directly or indirectly controlled by or affiliated with the Chinese Ministry of Industry and Information Technology were considered a Chinese military company; (ii) Alibaba was directly or indirectly controlled by or affiliated with the Chinese Ministry of Industry and Information Technology; (iii) the risk of Alibaba carrying out distillation attacks against third-party AI models was not a mere hypothetical or inadvertent, but ongoing; and (iv) as a result, defendants' public statements about Alibaba's business, operations, and prospects were materially false and/or misleading at all relevant times.
On June 8, 2026, after market hours, the U.S. Department of Defense allegedly released an updated list identifying Chinese military companies that included Alibaba due to its direct or indirect control by or affiliation with the Chinese Ministry of Industry and Information Technology. On this news, the price of Alibaba's American Depositary Shares ("ADSs") declined nearly 4%, according to the complaint.
On June 24, 2026, shortly before the markets closed, Bloomberg published an article titled "Anthropic Accuses Alibaba of 'Illicitly' Accessing AI Models." According to the complaint, the article stated in part that "Anthropic said that a campaign by operators linked to Alibaba's Qwen AI lab targeted Claude's most prized capabilities, including software engineering and agentic reasoning, according to a letter that the AI startup sent to several US senators and White House officials." The article allegedly also added that "Anthropic warned that Alibaba and other Chinese labs are making systematic and unauthorized use of results from leading US models to develop a rival generation of chatbots at a fraction of the cost via a practice known as adversarial distillation." On this news, the price of Alibaba's ADSs fell 2.7% on June 24, 2026, and 4.7% further on June 25, 2026, according to the complaint.
THE LEAD PLAINTIFF PROCESS: The Private Securities Litigation Reform Act of 1995 permits any investor who purchased or acquired Alibaba publicly traded securities during the Class Period to seek appointment as lead plaintiff in the Alibaba class action lawsuit. A lead plaintiff is generally the movant with the greatest financial interest in the relief sought by the putative class who is also typical and adequate of the putative class. A lead plaintiff acts on behalf of all other class members in directing the Alibaba class action lawsuit. The lead plaintiff can select a law firm of its choice to litigate the Alibaba class action lawsuit. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff of the Alibaba class action lawsuit.
ABOUT ROBBINS GELLER: Robbins Geller Rudman & Dowd LLP is one of the world's leading law firms representing investors in securities fraud and shareholder rights litigation. Our Firm ranked #1 on the most recent ISS Securities Class Action Services Top 50 Report, recovering more than $916 million for investors in 2025. This marks our fourth #1 ranking in the past five years. And in those five years alone, Robbins Geller recovered $8.4 billion for investors – $3.4 billion more than any other law firm. With 200 lawyers in 10 offices, Robbins Geller is one of the largest plaintiffs' firms in the world, and the Firm's attorneys have obtained many of the largest securities class action recoveries in history, including the largest ever – $7.2 billion – in In re Enron Corp. Sec. Litig. Please visit the following page for more information:
, /PRNewswire/ -- The Law Offices of Frank R. Cruz announces that investors with losses related to Alibaba Group Holding Limited (BABA) have opportunity to lead the securities fraud class action lawsuit.
IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN ALIBABA GROUP HOLDING LIMITED (BABA), CLICK HERE BEFORE OCTOBER 5, 2026 (THE LEAD PLAINTIFF DEADLINE) TO PARTICIPATE IN THE ONGOING SECURITIES FRAUD LAWSUIT.
What Is The Lawsuit About?
The complaint filed in this class action alleges that between June 26, 2025 and June 24, 2026, 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 that: (1) under the National Defense Authorization Act (the "NDAA"), any entities directly or indirectly controlled by or affiliated with the MIIT were considered a Chinese military company; (2) Alibaba was directly or indirectly controlled by or affiliated with the MIIT; (3) the risk of Alibaba carrying out distillation attacks against third-party AI models was not a mere hypothetical or inadvertent, but ongoing; and (4) 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.
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.
The Law Offices of Frank R. Cruz,
Email us at: [email protected]
Call us at: 310-914-5007
Visit our website at: www.frankcruzlaw.com
Follow us for updates on Twitter: twitter.com/FRC_LAW.
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.
SOURCE The Law Offices of Frank R. Cruz, Los Angeles
New York, New York--(Newsfile Corp. - September 8, 2026) - Kaplan Fox & Kilsheimer LLP announces that a class action lawsuit has been filed against Alibaba Group Holding Limited ("Alibaba" or the "Company") (NYSE: BABA) on behalf of investors that purchased or otherwise acquired Alibaba securities between June 26, 2025 and June 24, 2026 (the "Class Period").
CLICK HERE TO JOIN THE CASE
If you are an investor in Alibaba and have suffered losses, you may CLICK HERE to contact us. You may also contact Kaplan Fox by emailing [email protected] or by calling (646) 315-9003.
DEADLINE REMINDER: If you are a member of the proposed Class, you may move the court no later than October 5, 2026 to serve as a lead plaintiff for the purported class. If you have losses we encourage you to contact us to learn more about the lead plaintiff process. You need not seek to become a lead plaintiff in order to share in any possible recovery.
On June 8, 2026, after market hours, the complaint alleges that the U.S. Department of Defense released an updated list identifying Chinese military companies, and that Alibaba was included in the list due to its direct or indirect control by or affiliation with the Chinese Ministry of Industry and Information Technology (MIIT).
Then, on June 24, 2026, the complaint alleges Bloomberg published an article titled "Anthropic Accuses Alibaba of 'Illicitly' Accessing AI Models." According to the complaint, the article states, in pertinent part, that "Anthropic PBC accused Chinese technology giant Alibaba Group Holding Ltd. of waging a large-scale effort to "illicitly" access its Claude artificial intelligence model using thousands of fraudulent accounts that undermine the US AI developer's decision to keep its products out of China." On this news, Alibaba shares fell $7.53 per share, or 7.4% over two trading days to close at $95.07 per share on June 25, 2026.
WHY CONTACT KAPLAN FOX?
Kaplan Fox & Kilsheimer LLP is a nationally recognized law firm focused on complex litigation, with offices in New York, Oakland, Los Angeles, Chicago, and New Jersey. Founded in 1956, the firm has spent more than 50 years prosecuting securities, antitrust, and consumer protection actions in federal and state courts nationwide, recovering more than $10 billion for clients and the classes it has represented.
Kaplan Fox is widely regarded as one of the nation's premier plaintiffs' securities litigation firms and has received recognition from Chambers and Partners, Benchmark Litigation, Super Lawyers, and Lawdragon. Serving as lead or co-lead counsel in many landmark cases, the firm has secured some of the largest recoveries in the history of securities litigation, including a $2.425 billion recovery on behalf of Bank of America shareholders in In re Bank of America—the largest recovery ever obtained for claims under Section 14(a) of the Securities Exchange Act—$800 million recovered for the Arkansas Teacher Retirement System and other pension funds in ATRS v. Allianz Global Investors, and a $475 million settlement in In re Merrill Lynch.
For decades, Kaplan Fox has represented public pension funds, institutional investors, businesses, and individuals in high-stakes litigation. Through its successful advocacy and precedent-setting victories, the firm has helped shape important areas of securities and corporate law while advancing accountability and protecting investor interests.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules. Past results do not guarantee future outcomes.
If you have any questions about this Notice, your rights, or your interests, please contact:
Contacting or submitting information to Kaplan Fox & Kilsheimer LLP does not create an attorney-client relationship, nor an obligation on the part of Kaplan Fox to retain you as a client.
NEW YORK, Sept. 08, 2026 (GLOBE NEWSWIRE) -- Pomerantz LLP announces that a class action lawsuit has been filed against Alibaba Group Holding Limited (“Alibaba” or the “Company”) (NYSE: BABA). 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 Alibaba and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
You have until October 5, 2026, to ask the Court to appoint you as Lead Plaintiff for the class if you purchased or otherwise acquired Alibaba 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 June 8, 2026, after market hours, the U.S. Department of Defense released an updated list identifying Chinese military companies. Alibaba was included in the list due to its direct or indirect control by or affiliation with the Chinese Ministry of Industry and Information Technology.
On this news, Alibaba’s American Depositary Receipt (“ADR”) price fell $4.69 per ADR, or 39%, over two trading days, to close at $115.38 per ADR on June 10, 2026.
Then, on June 24, 2026, media outlets reported that Anthropic has accused Alibaba using fraudulent accounts in a large-scale effort to gain illicit access to Anthropic’s Claude AI model, thereby undermining Anthropic’s decision to keep tis products out of China.
On this news, Alibaba’s ADR price fell $7.53 per ADR, or 7.34%, over the following two trading sessions, to close at $95.07 per ADR on June 25, 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.
San Francisco, California--(Newsfile Corp. - September 8, 2026) - Hagens Berman Sobol Shapiro LLP urges Alibaba Group Holding Limited (NYSE: BABA) investors who suffered substantial losses submit their losses now.
A securities fraud class action lawsuit has been filed against Alibaba, and investors are encouraged to contact the firm regarding potential recoveries and lead plaintiff rights. The case, captioned Wistisen v. Alibaba Group Holding Limited, et al., No. 1:26-cv-06654 (S.D.N.Y.), accuses Alibaba and certain of its executive officers of violating the Securities Exchange Act of 1934.
View our latest video summary of the allegations:
Cannot view this video? Visit:
https://www.youtube.com/watch?v=Mt00-HjZs8U
Class Period: June 26, 2025 - June 24, 2026
Lead Plaintiff Deadline: Oct. 5, 2026
Visit: www.hbsslaw.com/baba
Contact the Firm Now: [email protected]
844-916-0895
Core Allegations
The lawsuit alleges that Alibaba and certain executives misrepresented and failed to disclose adverse facts pertaining to the Company's business which were known to Defendants or recklessly disregarded by them. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that:
Under the National Defense Authorization Act (NDAA), any entities directly or indirectly controlled by or affiliated with the Chinese Ministry of Industry and Information Technology (MIIT) were considered a Chinese military company; Alibaba was directly or indirectly controlled by or affiliated with the MIIT; The risk of Alibaba carrying out distillation attacks against third- party AI models was not a mere hypothetical or inadvertent, but ongoing; and As a result, Defendants' public statements about Alibaba's business, operations, and prospects were materially false and/or misleading at all relevant times.The Truth Emerges
The truth regarding Alibaba's regulatory exposure and illicit business practices was revealed through a series of partial corrective disclosures:
June 8, 2026: The U.S. Department of Defense added Alibaba to its list of Chinese military companies under the NDAA due to its ties to the MIIT. On this news, Alibaba ADSs fell $4.69 per share, or 3.9%, over two trading sessions.June 24, 2026: Bloomberg reported that Anthropic alerted U.S. officials that Alibaba fraudulently accessed Anthropic's Claude AI models via thousands of fake accounts to execute unauthorized "distillation" attacks to train its own models. On this news, Alibaba ADSs fell $4.73 per share, or 4.7%, to close at $95.07 on June 25, 2026.The complaint alleges that as a result of Defendants' misleading statements and omissions, investors suffered substantial losses when the artificial inflation was removed from the stock.
Hagens Berman's Investigation
"We are investigating whether Alibaba executives intentionally concealed the company's regulatory ties and engaged in fraudulent operational practices to mislead the market about its true risk profile and competitive position," said Reed Kathrein, the Hagens Berman partner leading the firm's investigation of the alleged claims in the pending suit.
What Affected BABA Investors Should Do
If you purchased or acquired Alibaba securities between June 26, 2025, and June 24, 2026, and suffered significant financial losses, you have until October 5, 2026, to ask the court to appoint you as lead plaintiff. You do not need to seek lead plaintiff status to share in any potential recovery.
To learn more about your legal options, submit your information to Hagens Berman, visit www.hbsslaw.com/baba, call Reed Kathrein at 844-916-0895, or email [email protected].
Whistleblowers: Persons with non-public information regarding Alibaba should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
# # #
About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation firm focusing on corporate accountability. The firm is home to a robust practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and other wrongdoings. Hagens Berman's team has secured more than $2.9 billion in this area of law. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Attorney Advertising. Prior results do not guarantee a similar outcome in any future case.
Contact: Hagens Berman, Reed Kathrein, 715 Hearst Avenue, Suite 300, Berkeley, CA 94710, 844-916-0895, [email protected]
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/313510
Source: Hagens Berman Sobol Shapiro LLP
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New York, New York--(Newsfile Corp. - September 8, 2026) - WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of Alibaba Group Holding Limited (NYSE: BABA) between June 26, 2025 and June 24, 2026, both dates inclusive (the "Class Period"), of the important October 5, 2026 lead plaintiff deadline in the securities class action first filed by the Firm.
SO WHAT: If you purchased Alibaba securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.
WHAT TO DO NEXT: To join the Alibaba class action, go to https://rosenlegal.com/cases/alibaba-group-holding-limited/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than October 5, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.
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 handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. 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 has 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.
DETAILS OF THE CASE: According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose that: (1) under the National Defense Authorization Act (the "NDAA"), any entities directly or indirectly controlled by or affiliated with the MIIT were considered a Chinese military company; (2) Alibaba was directly or indirectly controlled by or affiliated with the MIIT; (3) the risk of Alibaba carrying out distillation attacks against third-party AI models was not a mere hypothetical or inadvertent, but ongoing; and (4) as a result, defendants' statements about Alibaba's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
To join the Alibaba class action, go to https://rosenlegal.com/cases/alibaba-group-holding-limited/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.
No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.
Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm or 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.
-------------------------------
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/313566
Source: The Rosen Law Firm PA
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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Boeing (BA.N) said on Tuesday that it delivered 51 jets in August, a slight dip from the previous month and down from 57 jets a year earlier, as the number of 787 Dreamliners handed to customers declined.
The U.S. planemaker delivered only four 787s, down from nine the prior August. A spokesperson said the drop in deliveries was not due to any production, supply chain or certification problems. That brought total deliveries of its popular wide-body in 2026 to 54 through August.
The company still expects to deliver 90 to 100 787s by the end of the year, the spokesperson said.
Increasing output of the highly profitable twin-aisle jet is crucial to Boeing's financial turnaround.
European rival Airbus (AIR.PA) delivered 57 jets and booked 67 orders in August.
August deliveries included 41 737 MAX planes, Boeing's best-selling jet. Nine were delivered to Southwest Airlines (LUV.N), eight to United Airlines (UAL.O) and five to lessor AerCap (AER.N).
Through August, Boeing has delivered 418 aircraft, the most since 2018, when it delivered 481 jets through the first eight months of the year.
Boeing booked 15 new orders in August - two 737 MAX and 13 787 jets. All were for unidentified customers. There were no cancellations in the month.
Through August, Boeing has booked 453 orders after adjusting for cancellations in 2026.
Archer Aviation (ACHR +2.10%) is a pioneering player in the electric vertical take-off and landing (eVTOL) aircraft space. The company is betting that it can scale eVTOL sales and services into a substantially profitable business over the long term, but it still has a lot of work to do before its operations are set up to generate reliable earnings. One piece of good news is that the company doesn't have to rely entirely on growing organically in order to achieve its goals.
Last month, Archer announced that it had entered into a deal to acquire Boeing's Wisk Aero, Insitu, and SkyGrid subsidiaries. The move immediately spurred a substantial jump for Archer's share price, but what will it mean for the company and its shareholders over the long term?
Image source: Archer Aviation.
Archer's latest acquisition push looks encouraging Of the three units Archer acquired from Boeing, Wisk is the most clearly specialized in eVTOL aircraft. In the press release announcing the acquisitions, Archer describes Wisk as "the only company that has designed, built, and flown six generations of eVTOL aircraft, amassing 1,700+ flight tests." Meanwhile, SkyGrid is touted in the press release for its air-traffic management solution and its foundational potential for the future of automated airspace, and Insitu's pioneering role in the design and manufacturing of uncrewed aircraft systems (UAS) is touted.
Archer is acquiring these units from Boeing in an all-stock deal. With the completion of the purchases, Boeing will receive newly created Archer stock that will give it a 16.5% stake in the company. In addition, Boeing will receive warrants that grant it the right to purchase up to $200 million in additional stock. With the Archer issuing so much new stock in order to fund the acquisitions, that means that there will be a substantially dilutive impact for current shareholders. On the other hand, it could wind up being well worth it.
While heavy dilution means that shareholders will see the percentage-based size of their stake in Archer reduced, having Boeing as a large stakeholder and active partner comes with a wide range of potential benefits. As part of the deal, the two companies will enter into a technology-sharing agreement. Boeing will also retain access to Wisk's autonomous flight software for defense and commercial projects, which has positive aspects for Archer because it should support the continued integration and evolution of the tech.
Archer is rapidly diversifying Since going public in 2021 through a merger with a special purpose acquisition company (SPAC), Archer's growth story has primarily centered around the development, testing phases, and timeline for the commercial debut of its Midnight eVTOL aircraft. While Midnight is still important for Archer, the story surrounding the company and its stock has been changing rapidly through partnerships and acquisition moves.
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As noted by Archer CEO Adam Goldstein in the press release announcing the purchases from Boeing, the acquisitions are "the next big step forward in becoming a diversified platform, rapidly growing our revenue base, and bringing scale" to the business. Insitu alone is generating over $200 million in annual revenue, operating in 35 different countries, and generating profits. With the acquisition of the business, Archer's sales profile will immediately get a substantial boost -- and its margin profile should see meaningful improvement.
The partnership with Boeing and integration of Insitu, SkyGrid, and Wisk should provide valuable infrastructure that has complementary impacts across the company's business. In addition to presenting growth opportunities in their own right and supporting the evolution of the Midnight eVTOL project, the units that will be integrated into Archer will likely also help support the hybrid VTOL Halo and Thunder crafts that it developed in conjunction with Anduril and its ZEE aviation AI software model.
Along with expanding its manufacturing partnership with Stellantis, Archer's diversification moves are better positioning the company for long-term viability. The company's chances of achieving profitability solely on the back of its Midnight eVTOL while having to handle scaling manufacturing to the point of even achieving positive gross margins always looked like a long shot, and relying more on partnerships and other avenues to growth in the aviation space is a smart move. Archer stock is still a high-risk play, but its bets on autonomous aerial technologies could pay off over the long term even if ramping for the commercial eVTOL market proceeds at a relatively slow pace.
I'm rating Citigroup a Strong Buy with a $186 price target, implying 36% upside from $137, driven by robust earnings and improving efficiency. C reported Q2 2026 revenue of $24.8B, net income of $5.8B, EPS of $3.15, and RoTCE of 13%, with the efficiency ratio improving to 57.4%. C trades at a 0.51x FWD non-GAAP PEG—54% below the sector median—while delivering superior EPS growth, and a conservative re-rating underpins the upside.
Brown Lisle Cummings Inc. raised its stake in shares of NIKE, Inc. (NYSE:NKE – Free Report) by 800.0% during the second quarter, according to its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 20,889 shares of the footwear maker’s stock after purchasing an additional 18,568 shares during the quarter. Brown Lisle Cummings Inc.’s holdings in NIKE were worth $858,000 as of its most recent filing with the Securities and Exchange Commission.
Several other institutional investors have also bought and sold shares of the stock. Main Street Financial Solutions LLC increased its position in shares of NIKE by 4.2% in the second quarter. Main Street Financial Solutions LLC now owns 3,441 shares of the footwear maker’s stock valued at $244,000 after buying an additional 139 shares in the last quarter. ANB Bank lifted its position in shares of NIKE by 0.7% during the 4th quarter. ANB Bank now owns 25,451 shares of the footwear maker’s stock valued at $1,621,000 after buying an additional 165 shares in the last quarter. Cornerstone Wealth Management LLC lifted its position in shares of NIKE by 4.4% during the 4th quarter. Cornerstone Wealth Management LLC now owns 3,970 shares of the footwear maker’s stock valued at $253,000 after buying an additional 169 shares in the last quarter. Blue Bell Private Wealth Management LLC grew its stake in NIKE by 14.1% in the 4th quarter. Blue Bell Private Wealth Management LLC now owns 1,416 shares of the footwear maker’s stock valued at $90,000 after acquiring an additional 175 shares during the period. Finally, Laird Norton Wetherby Wealth Management LLC grew its stake in NIKE by 0.8% in the 3rd quarter. Laird Norton Wetherby Wealth Management LLC now owns 23,293 shares of the footwear maker’s stock valued at $1,624,000 after acquiring an additional 181 shares during the period. Institutional investors and hedge funds own 64.25% of the company’s stock.
NIKE Price Performance NIKE stock opened at $38.39 on Tuesday. NIKE, Inc. has a 12-month low of $37.95 and a 12-month high of $76.97. The stock has a market cap of $56.95 billion, a P/E ratio of 18.37, a PEG ratio of 1.88 and a beta of 1.10. The company has a 50-day moving average price of $41.52 and a 200 day moving average price of $45.98. The company has a current ratio of 1.96, a quick ratio of 1.36 and a debt-to-equity ratio of 0.40.
NIKE (NYSE:NKE – Get Free Report) last posted its earnings results on Tuesday, June 30th. The footwear maker reported $0.20 earnings per share for the quarter, beating the consensus estimate of $0.11 by $0.09. NIKE had a net margin of 6.70% and a return on equity of 16.54%. The company had revenue of $10.97 billion for the quarter, compared to analyst estimates of $10.85 billion. During the same period in the previous year, the business posted $0.14 EPS. NIKE’s revenue was down 1.1% on a year-over-year basis. Sell-side analysts anticipate that NIKE, Inc. will post 1.74 earnings per share for the current year. NIKE Announces Dividend The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 1st will be given a $0.41 dividend. This represents a $1.64 annualized dividend and a yield of 4.3%. The ex-dividend date is Tuesday, September 1st. NIKE’s dividend payout ratio is presently 78.47%.
Wall Street Analyst Weigh In Several brokerages recently commented on NKE. Stifel Nicolaus set a $45.00 price target on shares of NIKE and gave the stock a “hold” rating in a report on Wednesday, July 1st. Wall Street Zen raised shares of NIKE from a “sell” rating to a “hold” rating in a report on Saturday, May 16th. Evercore set a $46.00 price objective on NIKE and gave the stock an “in-line” rating in a research note on Tuesday, June 23rd. Citigroup reissued a “neutral” rating on shares of NIKE in a report on Wednesday, July 22nd. Finally, BNP Paribas Exane reiterated an “underperform” rating on shares of NIKE in a research report on Wednesday, July 22nd. One equities research analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating, twenty have given a Hold rating and four have issued a Sell rating to the company. Based on data from MarketBeat.com, NIKE currently has a consensus rating of “Hold” and an average price target of $52.94.
View Our Latest Research Report on NIKE
Insiders Place Their Bets In other NIKE news, EVP Philip McCartney sold 17,398 shares of the firm’s stock in a transaction on Friday, June 12th. The stock was sold at an average price of $46.18, for a total transaction of $803,439.64. Following the completion of the sale, the executive vice president owned 53,133 shares of the company’s stock, valued at $2,453,681.94. This trade represents a 24.67% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Amy Montagne sold 4,867 shares of NIKE stock in a transaction on Friday, August 7th. The shares were sold at an average price of $42.05, for a total value of $204,657.35. Following the completion of the sale, the insider owned 57,436 shares in the company, valued at $2,415,183.80. This represents a 7.81% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders have sold 26,142 shares of company stock valued at $1,169,380. 1.10% of the stock is currently owned by insiders.
Key Stories Impacting NIKE Here are the key news stories impacting NIKE this week:
Positive Sentiment: Some early signs of recovery are emerging in China, particularly in running, football and premium retail. However, the improvement remains preliminary and is offset by significant sales declines and ongoing inventory cleanup. NIKE’s China Business: Recovery Story or Ongoing Challenge? Positive Sentiment: Insider activity is mixed but includes purchases by CEO Elliott Hill and other directors and executives, which may indicate confidence that the depressed valuation offers long-term value. The median analyst price target of $47.50 also remains above recent trading levels, although estimates vary widely. Nike Stock Opinions on Earnings Miss and S&P 100 Removal Neutral Sentiment: Analysts and investors appear cautious, viewing the recovery as a multi-year effort requiring better product execution, stronger digital sales and improved regional performance. Nike’s dividend continues to attract some longer-term investors, but it has not overcome concerns about earnings quality and cash-flow deterioration. Negative Sentiment: S&P Dow Jones Indices will remove Nike from the S&P 100 effective September 21, ending an approximately 18-year membership. The change reflects the company’s sharp decline in market value and could reduce its visibility among index-tracking investors. Nike to lose S&P 100 place as stock sinks to 12-year low Negative Sentiment: Recent commentary highlights earnings concerns, elevated prices for basic apparel, weakness in China and digital sales, and intensifying competition from brands and retailers such as Lululemon and Dick’s Sporting Goods. These issues reinforce fears that the turnaround will take several years. Nike Has Tumbled in 2026: Is It Time to Switch? NIKE Profile (Free Report)
Nike, Inc (NYSE: NKE) is a global designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and renamed Nike in 1971, the company is headquartered near Beaverton, Oregon. Nike develops and commercializes products across performance and lifestyle categories for sports including running, basketball, soccer and training, and is known for signature technologies and design-driven product lines.
The company markets products under several primary brands, including Nike, Jordan and Converse, and sells through a combination of wholesale relationships, branded retail stores and direct-to-consumer channels such as company-operated stores and digital platforms (e.g., Nike.com and mobile apps).
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Nike has shed nearly half its value in a year, but one Wall Street analyst sees a path to almost doubling from here while the rest of the Street stays cautious. The question is whether this is a historic buying…
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Nike (NYSE:NKE | NKE Price Prediction) trades at $38.40, well below Wall Street’s average analyst price target of $50.46, a gap that implies roughly 31% upside.
Nike is the world’s largest athletic footwear and apparel brand, and its “Win Now” turnaround under CEO Elliott Hill has become one of the most closely watched consumer stories on Wall Street. At least one prominent shop thinks that consensus target is far too conservative.
How a Blue-Chip Turnaround Story Lost Nearly Half Its Value Nike shares are down 38.12% year to date and 47.35% over the past twelve months, against an S&P 500 up 12.94% and 18.65% across the same windows. Forbes recently flagged Nike’s removal from the S&P 100 as a possible capitulation signal.
The damage is fundamental. Fiscal Q1 2027 revenue slipped 1.1% year over year to $10.97 billion. Greater China fell 12% reported and 17% on a currency-neutral basis. Converse collapsed 32%. Nike Direct shrank 7%, with digital down double digits. The headline EPS beat of $0.72 versus $0.13 consensus looked flattering only because a one-time $986 million IEEPA tariff recovery added $0.52 per share. Strip that out and EPS was $0.20.
Why Needham Sees Nike Nearly Doubling Needham’s Tom Nikic carries a Buy rating and a $75 price target, a level that implies roughly 95% upside from here. His thesis rests on three pillars: wholesale channel realignment, franchise cleansing, and a strategic re-rating tied to Elliott Hill’s operational pivot.
Wholesale is already showing early proof. Nike’s retail-sales comparison at Foot Locker turned positive for the first time in four years in Q4 fiscal 2026, and North America wholesale grew 10%. Needham sees renewed shelf space at Dick’s Sporting Goods, Foot Locker, and specialty running stores as the primary volume engine, reversing years of over-indexing on direct-to-consumer.
Franchise cleansing is the harder story. Nike pulled roughly $2 billion of classic footwear off shelves in fiscal 2026, clearing space for performance platforms like Vomero and Pegasus. Nike Sportswear and Jordan Streetwear, together about half of total revenue, are expected to stay negative through the first half of fiscal 2027.
Consensus stays restrained. Ratings skew Hold-heavy across 39 analysts, and revisions have leaned lower with seven downward EPS cuts in the past 30 days. Nike’s investor day is scheduled for mid-November, and management has said Win Now actions will sunset by the end of calendar 2026. Both are potential re-rating catalysts.
Athletic Peers That Fell Even Harder The premium athletic space has been repriced across the board. Nike has plenty of company on the downside.
Lululemon Athletica (NASDAQ:LULU) is the deepest bruise in the group, down 51.59% year to date including a 17.38% single-session drop after Q2 revenue missed and guidance was cut. LULU trades near $100.61 against a $127.35 average target, implying about 27% upside. Ratings skew defensive: 1 Buy, 29 Hold, 3 Sell, and 1 Strong Sell.
On Holding (NYSE:ONON) is a growth story going through a valuation reset. Q2 revenue climbed 13.5% with a 65.4% gross margin. Shares are off 39.78% YTD at $27.99, versus a $44.69 target, an implied upside of roughly 60%. Analysts stay bullish with 7 Strong Buy and 16 Buy.
Deckers Outdoor (NYSE:DECK), parent of HOKA and UGG, has held up best, off 17.23% YTD. At $85.81 against a $122.81 target, implied upside sits near 43%.
The largest consensus upside in the group sits with On at roughly 60%, then Deckers at 43%, then Nike at 31%. Needham’s outlier $75 target on Nike would make it the biggest opportunity of the four if it plays out.
What the Consensus Really Says About Nike Nike trades at $38.40 with an average analyst target of $50.46, implying about 31% upside. Trailing P/E is 18, forward P/E is 23. Fiscal 2027 EPS consensus sits at $1.72 and fiscal 2028 at $2.23. Nike’s -38.12% YTD trails the S&P 500’s +12.94% by roughly 51 points.
The 39-analyst breakdown:
Strong Buy: 1 Buy: 10 Hold: 25 Sell: 1 Strong Sell: 2 My Take on Nike at Free-Fall Levels Nike looks compelling at these levels if Elliott Hill’s Win Now reset actually sunsets on schedule and North America wholesale momentum proves durable. The bull path is clean: Foot Locker and Dick’s shelves fill with fresh performance product, Vomero and Pegasus scale, China stops sliding, and the November investor day delivers a growth framework worth re-rating on. Get those, and Needham’s $75 stops looking heroic.
But the setup looks like a value trap on several fronts. Revenue is still shrinking. Greater China went from a 7% decline to a 12% decline in two quarters. Converse is in freefall. Nike Digital keeps shrinking. Rivals like On and HOKA keep taking running share. A 4.2% dividend yield and an $18 billion buyback leave a broken top line untouched.
The setup looks cautiously constructive at these levels. Consensus offers real if unspectacular upside, and the Needham call is a genuinely asymmetric bet if the wholesale reset holds. What keeps me off the table is that fiscal 2027 estimates are still being cut. One clean quarter of revenue stabilization would change that.
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A former college soccer player who has emerged as a leading California critic of transgender participation in women’s sports is bringing her fight to Nike — backing a shareholder measure as investors scrutinize corporate ties to groups that support gender-transition care for minors.
Sophia Lorey, 26, was set to address Nike shareholders Tuesday on behalf of a proposal from Christian investment firm Inspire Investing that calls for greater scrutiny of the sneaker giant’s charitable partnerships.
The Vanguard University alum was expected to focus on Nike’s relationship with the Human Rights Campaign, arguing that the company’s support for the LGBTQ advocacy organization clashes with its marketing of women’s athletics, according to Bloomberg, which obtained a recording of her planned remarks.
Sophia Lorey, a former Vanguard University soccer player and outreach director for the California Family Council, has been tapped to speak in support of an investor proposal at Nike’s annual meeting Tuesday. Instagram/@sophiaslorey The Nike vote is part of a wider pressure campaign by Inspire, which manages $5.4 billion and has been questioning scores of major corporations about their policies on transgender issues.
The investment firm and its allies have contacted 242 employers seeking information about whether their health insurance plans pay for gender-related surgeries for minors, Bloomberg reported.
That campaign is separate from the Nike proxy measure backed by Lorey, a proposal that focuses on potential risks stemming from the company’s charitable giving.
Lorey was set to invoke Nike campaigns including “Play Like a Girl” and “Get Her in the Game” while challenging the sports giant’s association with groups that support transgender women competing in women’s fields, according to Bloomberg.
The shareholder proposal cites an Equal Employment Opportunity Commission investigation involving allegations of systemic race discrimination at Nike.
Former college soccer player Sophia Lorey has become a prominent advocate against allowing transgender athletes to compete in girls’ and women’s sports. Vimeo/Inspire
Nike is urging shareholders to reject a proposal calling for greater scrutiny of risks associated with the sneaker giant’s charitable partnerships. SOPA Images/LightRocket via Getty Images “Given the EEOC’s current high-profile investigation into Nike over ‘systemic race discrimination allegations’ occurring partially as a result of the company’s diversity, equity, and inclusion initiatives, investors are right to be concerned about what further brand politicization could do to company performance,” the proposal states.
Nike has told shareholders to reject the measure, maintaining that another examination of its charitable relationships would duplicate safeguards already in place.
“Charitable partnerships are approved … only after a robust due diligence review of the proposed recipient organization,” Nike’s board said in a regulatory filing cited by Bloomberg.
Sophia Lorey (center) is seen in front of the Supreme Court Building in Washington, D.C., in a photo posted to Instagram on Jan. 14, 2026. Instagram/@sophiaslorey Lorey brings an athletic background to the campaign.
The 5-foot-4 defender played women’s soccer at Vanguard from 2018 through 2021 and majored in business administration, according to university records. Vanguard competed in the NAIA during her career.
She joined the California Family Council as outreach director in 2022 and has since become a prominent advocate against transgender athletes competing in girls’ and women’s sports.
Her advocacy has also extended into schools. In July, a podcast she co-hosts promoted a campaign helping parents seek exemptions for their children from what the program called “gender ideology lessons, CRT, DEI programming” and other curriculum conflicting with their religious beliefs.
Meanwhile, Inspire has broadened its corporate campaign with backing from investors that collectively oversee more than $100 billion, according to the firm’s director of corporate engagement, Tim Schwarzenberger.
The 242 companies approached by the coalition were identified partly through the Human Rights Campaign’s Corporate Equality Index, Bloomberg reported. Inspire is seeking disclosures about their insurance coverage and other policies involving transgender issues.
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“We feel that this is an important topic, there’s regulatory, legal and financial risks,” Schwarzenberger told Bloomberg. “We think shareholders have a right to know, have a right to transparency.”
According to Inspire, Walmart told the group that its plans do not pay for gender surgeries for minors. Charles Schwab told the group it previously offered such coverage but had stopped, Bloomberg reported. Neither company commented to the outlet.
Nike has become the latest target of a conservative investor campaign scrutinizing corporate policies involving transgender issues. Getty Images The Human Rights Campaign has pushed back against the campaign, arguing that conservative shareholder initiatives targeting diversity and LGBTQ policies have failed to attract significant support from investors.
“There is no question that extraordinary political and legal pressure has made some companies less willing to publicly document their LGBTQ+ workplace practices,” HRC senior vice president Jonathan Lovitz told Bloomberg.
“But less disclosure doesn’t mean … that they have actually changed practices internally,” he added.
Nike (NKE.N) shareholders have rejected a proposal urging more transparency on its climate goals, including disclosing details on how the sportswear maker intends to reach emissions-reduction targets, the company said on Tuesday.
The shareholder resolution resurfaced questions about the extent to which Nike, which for decades has positioned itself as a climate leader, is prioritizing its environmental targets as it faces financial strain, U.S. political pressure and global regulatory scrutiny of misleading environmental claims.
Oregon-based Nike said in 2019 it aims to reduce its carbon emissions by 65% across its own operations and by 30% across its supply chain by 2030. In a fiscal 2024 update, it said its supply chain emissions had fallen 11% from a 2015 baseline.
The company, which has a market capitalization of about $56 billion, did not release shareholder vote tallies.
Norway's wealth fund, Nike's 11th-biggest shareholder according to LSEG data, this week said it would back the push for more transparency.
"It's not that we think Nike is completely dropping the ball here. It's more that we want to know what's really going on," said Giovanna Eichner, shareholder advocate at Green Century Capital Management, which introduced the climate proposal. "It's unclear if there's that same level of commitment toward achieving the goals."
Nike's impact report in 2024 detailed its efforts to use recyclable polyester and rubber and help factories in its supply chain source renewable energy. Last year, details about those climate initiatives were replaced by a list of data points on emissions and waste.
Nike's board urged shareholders to vote against the proposal, arguing in a filing that the company remains committed to reducing greenhouse gas emissions and management is "best positioned to determine the targets and related disclosures that are appropriate."
The athletic footwear maker is grappling with slumping sales, eroded market share and a push by CEO Elliott Hill to reinvigorate product innovation nearly two years into his tenure. Shares have fallen about 40% so far this year.
EXECUTIVE COMPENSATION APPROVED
Shareholders on Tuesday ultimately supported the company's contested proposal to approve executive compensation. Hill's total compensation was more than $36 million for fiscal 2026.
Norway's wealth fund had said it would vote against executives' compensation, arguing that Nike's board "should ensure that all benefits have a clear business rationale." Proxy advisers Glass Lewis and Institutional Shareholder Services had recommended voting against the compensation packages.
A proposal from a group of conservative investors urging Nike to exclude gender-transition surgery for minors in employee health plans also failed to pass. The resolution, part of a broader campaign against employers, added to scrutiny of Nike over its diversity policies.
Nike remains overvalued at a 22.36x forward P/E despite a 50% share price decline and a 12-year low. Persistent margin compression, declining sales, and a free cash flow payout ratio above 100% increase the risk of a dividend cut within 6–12 months. Competitive pressures from adidas, Deckers, and others threaten NKE's footwear market share, with turnaround prospects likely 24–36 months away.
China’s Athleisure Boom Is Not Lifting Every Brand EquallyNIKE NYSE: NKE used its 46th annual shareholder meeting to outline progress in its business reset, emphasizing a sport-focused operating model, growth in performance categories and efforts to improve its marketplace execution.
Executive Chairman Mark Parker said shareholders voted on six proposals, including director elections, executive compensation, auditor ratification, an amended employee stock purchase plan and two shareholder proposals. The company later reported that all 11 director nominees were elected, PricewaterhouseCoopers was ratified as the independent auditor for the current fiscal year, and the amended and restated employee stock purchase plan was approved. The shareholder proposals concerning charitable-support discrimination and environmental targets were not approved.
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Nike Q4 Beat Masks Core Weakness as Analysts Cut Price TargetsParker also thanked departing director John Rogers for eight years of service, adding that Rogers will remain an adviser to the company.
Leadership and operating-model changes President and CEO Elliott Hill said NIKE has spent fiscal 2026 strengthening the business foundation through its “Win Now” strategy and its new “Sport Offense” operating model. The company shifted roughly 8,000 employees into vertical sport teams, a move Hill said is intended to connect athlete insights more closely with product development, marketing, marketplace execution and operations.
3 Dividend Stocks With Insiders Buying in 2026“When we focus on sport, we win,” Hill said, describing the model as a way to create more distinct products and move more quickly across sports categories.
NIKE also introduced Dave Denton, who had joined the company a few weeks earlier as chief financial officer. Denton said his initial meetings across the company highlighted employees’ focus on athletes, innovation and the global reach of the NIKE, Jordan and Converse brands.
Performance growth and marketplace efforts Hill said NIKE’s performance business grew by mid-single digits during fiscal 2026, while NIKE Running grew at a double-digit rate. He pointed to running as an early example of the Sport Offense model at work, saying the business produced five consecutive quarters of double-digit currency-neutral growth by the end of fiscal 2026 and added roughly $1 billion in revenue over that period.
According to Hill, NIKE gained five points of running market share in statement footwear across Western Europe and North America, more than any other top-five brand in those markets.
Global football also showed momentum, he said. By the first week of the World Cup, NIKE’s “Rip the Script” campaign had received 1.5 billion views, while the Mercurial became NIKE Direct’s fastest-selling 24-hour cleated-footwear launch.
Wholesale revenue rose 4% for the fiscal year, led by double-digit growth in North America, Hill said. The company refreshed more than 15,000 spaces at wholesale doors worldwide and updated more than 150 NIKE Direct stores with sport-led experiences.
Hill said overall results remain below the company’s objectives. NIKE Sportswear and Jordan Streetwear remain challenged, while Greater China and Converse are undergoing resets. The company reduced classic footwear franchises by more than $2 billion in fiscal 2026, tightened product buys and is seeking to reposition its sportswear offerings around community, innovation and sport.
China, capital allocation and innovation Addressing shareholder questions, Hill said NIKE remains committed to the Chinese consumer and is working to regain market share through sport. The company is cleaning up the Greater China marketplace, improving digital and physical storefronts, and empowering local teams to develop more locally created products and consumer storytelling, he said.
Denton said NIKE’s capital-allocation priorities include continued investment in the brand, athlete service, innovation and long-term growth while preserving financial flexibility. He said the company returned approximately $2.4 billion to shareholders through dividends last year.
Hill said NIKE remains confident in its innovation pipeline, citing NIKE Mind, AeroFit, ongoing development of NIKE Air and an upcoming ACG outdoor-running platform called Radical Air. He said future innovation will be more explicitly sport-led rather than developed simply for novelty.
NIKE plans to provide additional details about its strategy and next phase of growth at its Investor Day on Nov. 16 and 17.
Shareholder proposals rejected Shareholders rejected a proposal requesting a report on discrimination in charitable support. Inspire Investing Portfolio Manager and Director of Corporate Engagement Tim Schwarzenberger presented the proposal, which focused on NIKE’s partnerships and practices related to gender ideology and transgender medical interventions for minors. The board had recommended a vote against the proposal.
Shareholders also rejected a Green Century Capital Management proposal seeking a report on how NIKE intends to meet its existing science-based emissions-reduction targets. Green Century Shareholder Advocate Giovanna Eichner argued that greater disclosure was needed regarding supply-chain emissions, climate initiatives and progress toward the company’s 2030 targets. NIKE’s board also recommended a vote against that proposal.
About NIKE (NYSE:NKE)Nike, Inc NYSE: NKE is a global designer, marketer and distributor of athletic footwear, apparel, equipment and accessories. Founded in 1964 as Blue Ribbon Sports by Phil Knight and Bill Bowerman and renamed Nike in 1971, the company is headquartered near Beaverton, Oregon. Nike develops and commercializes products across performance and lifestyle categories for sports including running, basketball, soccer and training, and is known for signature technologies and design-driven product lines.
The company markets products under several primary brands, including Nike, Jordan and Converse, and sells through a combination of wholesale relationships, branded retail stores and direct-to-consumer channels such as company-operated stores and digital platforms (e.g., Nike.com and mobile apps).
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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SMITHS FALLS, Ontario--(BUSINESS WIRE)--Canopy Growth Corporation (“Canopy Growth”, “our”, “we” or the “Company”) (TSX: WEED) (Nasdaq: CGC), a leading global company committed to bettering lives through cannabis, today announced a broadening of its medical cannabis portfolio in Australia across its Spectrum Therapeutics, Spectrum Therapeutics Reserve, 7ACRES, Tweed and Twd. brands. The expansion introduces two new product formats, and new formulations within its existing oil and softgel ranges.
Shares of Canopy Growth Corporation (NASDAQ:CGC – Get Free Report) have been assigned a consensus rating of “Hold” from the five ratings firms that are covering the firm, Marketbeat.com reports. One equities research analyst has rated the stock with a sell rating, two have given a hold rating and two have assigned a buy rating to the company.
A number of brokerages recently commented on CGC. Wall Street Zen lowered shares of Canopy Growth from a “hold” rating to a “sell” rating in a report on Saturday. Weiss Ratings raised shares of Canopy Growth from a “sell (e+)” rating to a “sell (d-)” rating in a research note on Wednesday, August 26th.
Read Our Latest Research Report on CGC
Insider Transactions at Canopy Growth In related news, insider Christelle Gedeon sold 58,994 shares of the stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $0.97, for a total transaction of $57,224.18. Following the completion of the transaction, the insider directly owned 705,506 shares in the company, valued at approximately $684,340.82. This trade represents a 7.72% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, CEO Luc Mongeau sold 135,231 shares of the stock in a transaction dated Wednesday, June 17th. The stock was sold at an average price of $0.97, for a total value of $131,174.07. Following the transaction, the chief executive officer owned 1,723,913 shares of the company’s stock, valued at approximately $1,672,195.61. The trade was a 7.27% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last 90 days, insiders sold 240,533 shares of company stock worth $240,032. Corporate insiders own 0.35% of the company’s stock. Institutional Investors Weigh In On Canopy Growth Institutional investors have recently bought and sold shares of the company. Two Sigma Securities LLC boosted its position in Canopy Growth by 4.4% during the 2nd quarter. Two Sigma Securities LLC now owns 280,852 shares of the company’s stock worth $343,000 after acquiring an additional 11,942 shares during the last quarter. Commonwealth Equity Services LLC lifted its position in shares of Canopy Growth by 23.1% in the fourth quarter. Commonwealth Equity Services LLC now owns 73,739 shares of the company’s stock worth $84,000 after purchasing an additional 13,814 shares in the last quarter. Boothbay Fund Management LLC bought a new stake in shares of Canopy Growth in the second quarter worth $30,000. Mackenzie Financial Corp boosted its holdings in Canopy Growth by 33.1% during the third quarter. Mackenzie Financial Corp now owns 111,945 shares of the company’s stock worth $163,000 after purchasing an additional 27,823 shares during the last quarter. Finally, PCG Wealth Advisors LLC acquired a new position in Canopy Growth during the fourth quarter worth $32,000. Institutional investors own 3.33% of the company’s stock.
Canopy Growth Stock Down 0.7% Shares of Canopy Growth stock opened at $0.97 on Friday. The company has a market capitalization of $433.80 million, a P/E ratio of -2.15 and a beta of 0.83. The company has a debt-to-equity ratio of 0.31, a current ratio of 3.04 and a quick ratio of 2.39. The business has a 50-day moving average of $0.97 and a two-hundred day moving average of $1.02. Canopy Growth has a 1 year low of $0.84 and a 1 year high of $2.38.
Canopy Growth (NASDAQ:CGC – Get Free Report) last released its quarterly earnings data on Friday, August 7th. The company reported ($0.02) earnings per share for the quarter, beating the consensus estimate of ($0.04) by $0.02. The business had revenue of $142.62 million for the quarter, compared to analysts’ expectations of $58.21 million. Canopy Growth had a negative return on equity of 21.91% and a negative net margin of 65.33%. As a group, equities analysts predict that Canopy Growth will post -0.1 EPS for the current year.
About Canopy Growth (Get Free Report)
Canopy Growth Corporation is a leading Canadian cannabis company engaged in the production, distribution and sale of both medical and recreational cannabis products. Headquartered in Smiths Falls, Ontario, the company cultivates a diversified portfolio of offerings that includes dried flower, pre-rolled joints, oils, softgel capsules and edibles. Canopy Growth also markets derivative products such as beverages and wellness formulations under a range of brands, aiming to serve both patient and adult-use markets.
The company operates through multiple subsidiaries, including Tweed Inc, Spectrum Therapeutics and Tokyo Smoke, each targeting distinct consumer segments.
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In the latest trading session, Tilray Brands, Inc. (TLRY - Free Report) closed at $4.30, marking a -4.44% move from the previous day. The stock fell short of the S&P 500, which registered a loss of 0.58% for the day. Elsewhere, the Dow saw a downswing of 1.18%, while the tech-heavy Nasdaq depreciated by 0.32%.
Coming into today, shares of the company had gained 1.81% in the past month. In that same time, the Medical sector gained 2.73%, while the S&P 500 lost 0.36%.
The upcoming earnings release of Tilray Brands, Inc. will be of great interest to investors. Simultaneously, our latest consensus estimate expects the revenue to be $268.23 million, showing a 28.03% escalation compared to the year-ago quarter.
TLRY's full-year Zacks Consensus Estimates are calling for earnings of -$0.42 per share and revenue of $1.1 billion. These results would represent year-over-year changes of +61.47% and +20.56%, respectively.
Investors should also take note of any recent adjustments to analyst estimates for Tilray Brands, Inc. These latest adjustments often mirror the shifting dynamics of short-term business patterns. Therefore, positive revisions in estimates convey analysts' confidence in the business performance and profit potential.
Based on our research, we believe these estimate revisions are directly related to near-term stock moves. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 3.48% lower within the past month. Tilray Brands, Inc. is holding a Zacks Rank of #3 (Hold) right now.
The Medical - Products industry is part of the Medical sector. This industry currently has a Zacks Industry Rank of 89, which puts it in the top 37% of all 250+ industries.
The Zacks Industry Rank is ordered from best to worst in terms of the average Zacks Rank of the individual companies within each of these sectors. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Keep in mind to rely on Zacks.com to watch all these stock-impacting metrics, and more, in the succeeding trading sessions.
Nvidia Corporation is upgraded to Buy, with a $300 fair value, as Q2 results and guidance confirm a multi-year, supply-constrained AI platform buildout. NVDA's Q2 revenue hit $96.2B, data center $89B, and free cash flow $21.3B; management guides for ~70% fiscal 2028 revenue growth, still supply-limited. The AI landscape is converging on NVDA's platform, with hyperscaler CapEx/backlog, neocloud scaling, and memory scarcity reinforcing platform durability and pricing power.
Nvidia stock fell about 1.5% on Tuesday to around $227, taking a breather after three consecutive sessions of gains as broader markets came under pressure from rising oil prices and renewed Middle East tensions.
The pullback was notable because several major semiconductor stocks moved higher.
Intel surged more than 8% after Northland Capital Markets analyst Gus Richard upgraded the stock to Outperform from Market Perform.
AMD gained about 5%, while Broadcom rose roughly 3%. The PHLX Semiconductor Sector index was also up around 2%.
The broader market moved in the opposite direction. The Dow Jones Industrial Average fell 574 points, or 1.1%, while the S&P 500 declined 0.4% and the Nasdaq Composite slipped 0.3%.
US markets were closed on Monday for the Labor Day holiday.
Oil prices remained a key source of pressure for equities on Tuesday as West Texas Intermediate crude futures rose for a sixth consecutive session, extending their longest winning streak since March.
Brent crude was trading around $98 a barrel as tensions between the US and Iran escalated over the weekend.
Against that backdrop, Nvidia’s decline comes after a strong run over recent months.
The stock is up about 24% over the past six months and remains just below its record high of $236.54.
However, Nvidia has significantly underperformed some semiconductor peers over the same period, with both AMD and Intel gaining more than 100%.
Cantor maintains $350 Nvidia targetCantor Fitzgerald reiterated its Overweight rating on Nvidia and maintained a $350 price target.
The firm highlighted continued demand for AI infrastructure while acknowledging supply constraints across the semiconductor industry.
Analyst C.J. Muse said investors remain divided over the durability of the AI investment cycle as macroeconomic and debt concerns weigh on markets.
Cantor also emphasized Nvidia’s position as TSMC’s largest customer and argued that the stock trades at the cheapest valuation among compute companies based on calendar 2028 earnings estimates.
The firm also believes Nvidia remains under-owned by both hedge funds and long-only investors.
Muse addressed Nvidia’s high-bandwidth memory specifications, characterizing HBM de-specification as an economic decision aimed at optimizing gross margins and GPU sales around a finite number of bits.
Earlier this month, Morningstar raised its fair value estimate to $310 from $280, implying roughly 30% upside from the stock’s current level.
Nvidia reported $96 billion in fiscal second-quarter revenue, up 106% from a year earlier and above its $91 billion guidance.
The company expects October-quarter revenue of $108 billion, ahead of FactSet consensus of $105 billion.
Morningstar identified Nvidia’s fiscal 2028 outlook as the most significant part of the earnings report.
Nvidia expects revenue growth of 70% next year, implying nearly $700 billion in total revenue compared with Morningstar and FactSet estimates of roughly $570 billion.
The outlook reinforces the longer-term bullish case, even as Nvidia’s shares pause after their recent gains.
Nvidia (NASDAQ: NVDA) remains one of Wall Street's favorite AI trades, and a fresh analyst update suggests at least one firm believes the rally still has room to run.
Big banks are demanding AI systems they can physically disconnect from the internet, and the CEO of one of Nvidia's newest partners says that changes everything about where the next trillion dollars in AI compute actually gets built.
The CEO of AI search startup Perplexity handed retail investors a sharp counterpoint to the cloud data center boom behind NVIDIA (NASDAQ:NVDA | NVDA Price Prediction)’s $5.48 trillion market cap. Speaking on CNBC’s Squawk on the Street on September 4, 2026, Perplexity CEO Aravind Srinivas argued that data centers alone cannot carry AI’s next phase. Big banks, he said, want part of that computing power on their own premises, in machines they control and can physically unplug.
Terawatt Problem Looms Over AI Srinivas framed the ceiling clearly, saying, “If a billion people need to run 24 over seven agents, they’re going to need a terawatt of power and a lot of memory. And so you’re not going to be able to do this just with data centers.” His fix is hybrid: route privacy-sensitive workloads to local hardware while keeping cloud access for frontier models. He noted that “there’s a lot of ram in our own devices, there’s a lot of power in our own offices, in our own homes that we’re not actually tapping into for AI inference today.”
Why Banks Want the Plug For banks, the appeal of running AI closer to home begins with control. Srinivas shared that firms like Morgan Stanley or JPMorgan want “air gapped implementation”, disconnected boxes running “the product, the model, the agent, everything” on-premises because they fear “their ip leaking to frontier labs.” The hardware he pointed to is NVIDIA’s DGX Spark, the desk-side box built for local inference.
NVIDIA’s Q2 FY27 numbers show this on-prem market is substantial. CFO Colette Kress told analysts that “on a trailing 12-month basis, on-prem revenue in the automotive vertical reached $8 billion, while financial services, manufacturing, and healthcare combined contributed $7 billion in revenue.” She named Hudson River Trading and Jane Street as trading firms running quantitative workloads on NVIDIA AI factories.
Funding Both Sides of the Compute Equation NVIDIA is bankrolling both ends of the spectrum. Finance chief Kress said non-hyperscaler categories, sovereign AI, regional neoclouds, enterprise edge and air-gapped data centers will make up roughly half of the data center business. NVIDIA has also lined up heavy-hitters Apollo, BlackRock, Blackstone, Brookfield, Goldman Sachs and KKR to mobilize over $500B for centralized AI infrastructure (the power, cooling, and networking suppliers behind that buildout are the subject of a free report on seven AI infrastructure names that aren’t chipmakers). Its Confidential Computing GPUs power Apple (NASDAQ:AAPL) Private Cloud Compute, the hybrid architecture former CEO Tim Cook described as running “on device” and “on servers using private cloud compute.”
What to Watch Next Jensen Huang’s pitch on the Q2 FY27 call was that NVIDIA is “an entire AI factory platform” that customers “can use in any cloud” or run anywhere. If workloads migrate to the desk, NVIDIA still sells the silicon. The stock is up 35% over the past year and 21.7% year to date. Q3 FY27 guidance sits at $108B in revenue (±2%). The question is whether an on-prem shift compresses the hyperscaler capex that has driven Data Center revenue to $89.02B (+117% YoY), or routes it through a different SKU on the same invoice. Banks may pull some workloads out of the cloud. NVIDIA is betting its chips will still power the machines running them.
Contact [email protected] for any questions or corrections.
Nvidia Corporation delivered a strong Q2 FY27, with 106% y/y revenue growth and broadening demand beyond hyperscalers, reducing concentration risk. Management's supply-constrained FY28 outlook—guiding to ~70% revenue growth—provides exceptional near-term earnings visibility for a $5T+ company. NVDA's dual role as AI arms dealer and banker introduces credit and reflexivity risks, but these are manageable and factored into the bear case.
There's no shortage of naysayers when it comes to Nvidia (NVDA -2.01%). Just 1.18% of its outstanding shares are currently being shorted, but think about what that means for a company with a market cap just above $5.5 trillion.
There are nearly $57 billion in short positions out there, and that doesn't include put options, bearish ETFs, or other derivative activity. The actual number of shares sold short has actually increased 40% over the past year, and the value of those bearish wagers has risen another 35% on top of that.
The bears are everywhere, but I see that as more of an opportunity than a threat. Let's go over some of the knocks on Nvidia. I want to counter by pointing out what the worrywarts might be missing.
Image source: Getty Images.
1. Nvidia is priced for perfection There is nothing that I love more than when a bear argues that a stock is "priced for perfection." The assumption is that current expectations are too high and that the stock is bumping up against the ceiling, with so much air below it on the way down to the floor.
Last month's fiscal second quarter was a perfect example of Nvidia stock perpetually scaling the wall of worry. Bears were banking on analysts aiming too high by targeting 97% in top-line growth. It would be the fourth consecutive quarter of accelerating year-over-year growth.
How is that possible with a company as large as Nvidia? Expectations were high. Reality was kinder. Here's a look at the company's top-line growth:
Q2 FY 2026: 56% Q3 FY 2026: 63% Q4 FY 2026: 73% Q1 FY 2027: 85% Q2 FY 2027: 106% The late-August financial update gets even better. Those same analysts tagged by bears as overly ambitious are serial lowballers. They projected revenue would decelerate sharply to just 45% for fiscal year 2028, which starts in February. Nvidia shattered those crystal balls two weeks ago by forecasting 70% growth for next year.
Perfection isn't the ceiling. Market winners thrive in the debunking process.
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2. Rivals will gain market share at Nvidia's expense It would be naive for a bull like me to assume that Nvidia will be the king of the hill forever. Competitive advantages can weaken over time, just as they have been strengthening for years. A disruptor can pioneer a better mousetrap for the AI revolution or whatever giant tech trend comes next.
The one thing that's fair to say is that it's not happening now. Let's have Advanced Micro Devices (AMD +5.90%) enter the chat. AMD has a colorful history of needling the market leader, and it's certainly cashing in on the AI boom Nvidia is championing.
AMD stock has outperformed Nvidia over the past year by more than tripling. However, in its latest quarter -- and I'll point out that their fiscal quarters ended about a month apart -- AMD's overall revenue rose just 50%, half of Nvidia's top-line growth.
I'll beat the bears to what they're thinking. Zoom in on AMD's data center business, which now accounts for more than half (58%) of its revenue, and that business skyrocketed 107% for the quarter. That's awesome, but Nvidia's data center revenue, which accounts for 93% of its results, soared 117%.
In the end, AMD's data center business delivered $3.5 billion in incremental revenue compared to a year earlier. Nvidia tacked on $48 billion in incremental data center revenue.
3. Margins will inevitably contract Let's close on a margin of error. Nvidia's gross margin was 75% in its latest quarter. The adjusted net margin was a jaw-dropping 56%. It's easy to question the sustainability of those levels. Unlike the flawed "priced for perfection" argument, there is a clear ceiling here: Gross margin will never exceed 100%, and the after-tax adjusted bottom line will naturally be well below that.
The reasonable bear case is that growth may continue but decelerate. Margins will contract, so earnings will grow even slower than the slowing top line -- if not eventually turn into negative year-over-year earnings growth.
Set aside that high bandwidth memory (HBM) makers riding Nvidia's coattails are currently generating gross margins approaching 85%. With competition percolating, Nvidia will need to keep innovating and fortifying its moat. It probably has more pricing flexibility now than the bears think. With third-party HBM becoming a larger cost component in the AI build-out, won't it make it even riskier for a company to bank on non-Nvidia AI chips and accelerators?
In the meantime, you can buy the stock for less than 15 times next year's projected earnings. This is why the bears aren't arguing that Nvidia is too expensive, as it's trading at a discount to the overall market despite growing substantially faster. Nvidia will be volatile, but it's built to win.
Nvidia just posted the largest quarter in semiconductor history, yet the stock trades like Wall Street is only half-convinced. A credible case exists for 160% gains by 2030, but it hinges on three specific things going right.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) just posted the largest quarter in semiconductor history, and the stock still trades like the market is only half-convinced. Data Center revenue hit $89.02 billion, up 117% year over year, and CEO Jensen Huang told investors “AI is now doing productive and useful work” that generates profitable tokens.
Shares are up 24.08% year to date, respectable but hardly euphoric. So here is the question I want to answer: can NVIDIA reach $600 per share by 2030?
What Is Holding NVIDIA Back Right Now NVIDIA is performing well. Shares are up 6.24% over the past week and 5.43% over the past month. The issue is that the stock has been chopping in a range for most of 2026 while the fundamentals accelerated past almost every reasonable model.
Two overhangs explain it. First, China Data Center compute revenue is guided at zero for Q3, and management stated bluntly that “there is no China data center compute revenue in our forward outlook.”
Second, memory pricing has spiked, and Huang warned the increases “have exceeded our prior expectations and are headed even higher into next year.”
With a beta of 2.217, NVDA amplifies every macro wobble. That is why a company growing revenue at triple digits still trades at a forward multiple in the low 20s.
Wall Street Sees 42% Upside. Our Model Sees Something Bigger The consensus is loud. Of the 60 analysts covering NVDA, 9 rate it strong buy, 48 buy, 2 hold, and 1 sell, with an analyst target price of $327.13. That implies roughly 42% upside from here.
Our 24/7 Wall St. model is more constructive still, targeting a base-case price of $309.81 in a year with a confidence score of 0.9 and a bull case of $354.73.
Here is where I push back. Consensus is anchored to fiscal 2027. It is not fully pricing the fiscal 2028 EPS estimate, which has jumped from $12.63 to $15.46 in just 90 days on 39 upward revisions. Analysts are catching up, not leading.
Path to $600 Per Share by 2030 Reaching $600 from today’s price of $230.36 would require a gain of 160.5%. With forward EPS of $10.05, a price of $600 implies a forward P/E of 60x on today’s earnings power. Our base case of $309.81 already implies 33x, meaning the bold target requires 27x of additional multiple expansion on current forward EPS.
Here is the compression story that makes it work: if fiscal 2028 EPS lands at consensus $15.46 and the company grows revenue approximately 70% in fiscal 2028 as guided, EPS by fiscal 2031 could clear $25. At that level, $600 is a 24x multiple.
Catalysts to get there are already in motion: Vera Rubin generating $40 billion per gigawatt versus Blackwell’s $25 billion, top-five hyperscaler capex projected at $1.3 trillion in 2027, and cloud industry backlog now above $2 trillion.
Not all of that trillion-dollar buildout accrues to NVIDIA; the power, cooling, and networking suppliers behind the data centers ride the same wave, and we profiled seven of them in a free report you can grab here. The primary risk is that supply constraints or a China escalation cap unit growth before EPS can catch the multiple.
Where NVIDIA Trades Today vs Its Earnings Power At $231.13, NVDA trades at roughly 23x forward earnings. That looks reasonable for a business with 75% non-GAAP gross margins and 126% net income growth, it is a discount to almost any historical AI-cycle comparison.
Shares sit near the 52-week high of $236.26, well off the low of $164.08. Long-term context matters. NVDA is up 14,808% over the past decade. Today’s multiple is the cheapest it has been during any major NVIDIA product cycle since Hopper.
Is $600 Realistic? My Verdict Reaching $600 by 2030 requires a 160.5% gain and, more importantly, EPS growth doing most of the heavy lifting so the forward P/E can actually compress into the low 20s at that price. My take: it is a stretch, but a credible one.
Three things need to go right. Vera Rubin has to become “the fastest product ramp in NVIDIA’s history” as management promises, hyperscaler capex has to sustain through the decade, and non-hyperscaler ACIE revenue has to keep compounding at triple digits. A hard China decoupling or a hyperscaler capex reset would derail it. Returns at this level shouldn’t be expected every year, but we’ve outlined the blueprint for how NVIDIA could reach $600 in 2030.
Contact [email protected] for any questions or corrections.
Ivan Feinseth believes Nvidia (NVDA) purchasing Hugging Face for just under $13 billion is something that accelerates the Mag 7 giant's software momentum. He says Hugging Face will add efficiency and expand the runway for future prospects.
Nvidia Corporation remains a Buy as its earnings momentum accelerates, driven by robust Data Center growth and new product ramps like Vera Rubin. Q2 revenue reached $96.2B, beating expectations with 18% sequential Data Center growth and a sustained 75% non-GAAP gross margin. Nvidia is stacking multiple growth engines—Blackwell, Vera Rubin, networking, and AI infrastructure—broadening its customer base and addressable market.
Nvidia (NVDA -2.01%) has delivered plenty of organic growth over its history, but acquisitions have also played a major role in its expansion from a GPU designer to a comprehensive AI platform, or factory, as CEO Jensen Huang calls it.
For example, it acquired the data center networking specialist Mellanox for $6.9 billion in 2019, and it now anchors a business that generates more than $31 billion in revenue annually.
The Hugging Face acquisition, which it announced last week, will be its biggest ever at a purchase price of $12.9 billion. Nvidia did spend $20 billion in a deal with Groq, but that was a non-exclusive technology licensing and talent agreement, rather than an outright acquisition.
Acquisitions have been hit-or-miss in the tech sector, and $12.9 billion is a large sum even by modern standards. Let's take a look at what Nvidia gets for that money, before discussing what the deal means for investors.
Image source: Nvidia.
What Hugging Face brings to NvidiaHugging Face is an online platform for building AI and machine learning tools, and is sometimes described as "GitHub for machine learning," referring to the code repository now owned by Microsoft.
Given its position at the top of the funnel in the AI stack, you can see how the platform would be valuable to Nvidia, whose future depends on its ability to continue to dominate the AI chip ecosystem.
Hugging Face has a base of 18 million developers, researchers, and creators on the platform, and more than 3 million models, 500,000 data sets, and 1 million applications. It's currently used by more than 200,000 companies for AI development.
Hugging Face will remain an open platform, and Nvidia has been committed to open models for years. The acquisition seems to be more about gaining a valuable top-of-the-funnel platform than integrating Hugging Face's infrastructure into Nvidia, though Nvidia is the largest contributor of open models and data to Hugging Face. Still, Nvidia's ownership of Hugging Face should increase its influence over the software layer that gets built on its hardware. Open-source model adoption also drives demand for Nvidia's hardware, so supporting Hugging Face can help grow the platform and increase demand for its chips and hardware.
Plenty of tech acquisitions have blown up in the past. Microsoft, for example, has a long history of botched acquisitions, including Nokia’s handset business, Skype, the videoconferencing platform, and aQuantive, a digital marketing company.
Nvidia, on the other hand, has a more successful acquisition history, and it's stuck to its strengths in semiconductors, rather than chasing every emerging business as tech giants like Microsoft sometimes have.
However, there's a simpler reason why the Hugging Face acquisition shouldn't faze investors. While the $12.9 billion is nominally a lot of money, for a company like Nvidia, it's actually quite affordable. Based on Nvidia's net income of $59.7 billion in the second quarter, Hugging Face costs it roughly three weeks of profits, and its profits are growing rapidly.
Companies can spend their profits on a few different things. Generally, the available options are capital expenditures to invest in growth, acquisitions, investments, debt repurchases, dividends, or share buybacks.
At this point, Nvidia seems to be growing too quickly, and the stock is too expensive for the company to be spending a substantial percentage of its profits on returning capital to shareholders through dividends or buybacks.
I'd rather the company use that money to invest in its growth and widen its economic moat in AI chips, and it seems to be doing that. In addition to the Hugging Face acquisition, it's built a broad network of investments and partnerships with AI labs, neocloud companies, other chipmakers, and partners like Space Exploration Technologies. Its portfolio of publicly traded companies was worth $63.4 billion at the end of Q2, and that doesn't include investments in companies like OpenAI and Anthropic.
Investors should hope to see more such acquisitions like Hugging Face as the company has more than enough capital to spend on them, and doing so will help further entrench and expand its AI empire.
One enormous forecast just changed the market's expectations almost overnight Summary
AMD stock surged after the chipmaker forecast $70 billion in 2027 data-center sales, supported by AI GPUs and rapidly growing server CPU demand
Advanced Micro Devices AMD stock jumped more than 6% Tuesday after the chipmaker outlined a bullish AI outlook at Citi's 2026 Global TMT Conference. Investors focused on AMD's near-term targets, alongside its $2 trillion AI opportunity estimate for 2030.
AMD expects its data-center business to double to $70 billion in 2027. AI graphics processors could contribute sales in the low $40 billion range, with server CPUs supplying the remainder. That gives AMD two paths into AI spending beyond accelerators.
AMD's 2027 Forecast Raises the StakesThe MI450 rollout bridges that forecast. Production shipments started during the third quarter of 2026, with a larger ramp expected in the fourth quarter and another increase in the first quarter of 2027. AMD has named Meta Platforms (META), OpenAI, and Anthropic as AI customers.
The server opportunity is equally important. AMD increased its 2030 server CPU market estimate to $220 billion from $60 billion. It expects server CPU revenue to grow more than 80% year over year during the second half of 2026 and more than 70% in 2027, helped by agentic AI workloads.
Yet the guidance exposes AMD's central constraint. Demand is running ahead of supplies of advanced wafers, high-bandwidth memory, and chip packaging. The company has secured $29 billion to $30 billion in purchase commitments to support its expansion.
Chief Financial Officer Jean Hu described “the pace, the scale, and the rise of the AI” as “unprecedented.” That opportunity comes with a near-term profitability tradeoff. AMD expects gross margin to edge lower during the fourth quarter and in 2027 as MI450 production expands, although total gross profit dollars should rise.
For investors, the rally reflects confidence that AMD can narrow Nvidia's (NVDA) AI advantage while strengthening its CPU franchise. The targets are powerful, but fulfilling them requires supply, customer deployments, and manufacturing execution to move together on schedule.
Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
Nvidia (NVDA -2.01%) has been a key company -- and some may say the key company -- driving the artificial intelligence (AI) revolution. This is because the tech giant designs the most powerful graphics processing units (GPUs), the chips fueling AI, and has expanded this expertise into the creation of complete systems. Today, Nvidia is a full-stack AI company, offering customers a vast selection of products and services needed along the AI path.
All of this has translated into explosive growth and record levels of earnings. In the most recent quarter, Nvidia's revenue soared 106% to $96 billion. And profit followed, advancing 126% to $59 billion. Nvidia is benefiting from massive investments in AI infrastructure; capital expenditures by the company's top five customers are forecast to reach $1.3 trillion next year.
Nvidia shared this and other news just last month during its fiscal 2027 second-quarter earnings report. Now, Sept. 10 represents a fresh opportunity to hear more from this AI powerhouse. My prediction is that it will be a big day for shareholders. Here's what to watch.
Image source: Getty Images.
Nvidia's soaring earningsSo, first, a quick summary of Nvidia's recent and long-term performance. The company's earnings and stock price have soared over the past few years, as shown in the chart below, driven by its dominance in the AI chip market.
NVDA data by YCharts
Nvidia entered this market about a decade ago, well before the AI boom started, and designed its GPUs specifically to serve AI. In the past, Nvidia focused its designs on the gaming space -- this remains a market for Nvidia, but the AI opportunity has become the tech giant's biggest business. For example, in the recent quarter, data center revenue came in at $89 billion on the total $96 billion in revenue.
Nvidia's stock price continues to climb, but with a gain of about 20% so far this year, it's underperforming certain AI peers such as chip rivals Advanced Micro Devices and Intel, and memory chip giant Micron Technology. Those three players have seen their stock prices soar in the triple digits. This is as investors shift into other AI players that didn't climb as much as Nvidia in the earlier stages of the AI boom.
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An update from NvidiaNow, let's consider what's set to happen on Sept. 10. Nvidia is set to make a presentation at the Goldman Sachs Communacopia + Technology Conference at 8:50 a.m. Pacific Time, and this will be an opportunity for investors to hear the latest news at a crucial moment in time: as Nvidia rolls out its latest update, the Vera Rubin platform. The company said last month that it had begun production shipments of Rubin and that the system would likely account for 20% of data center revenue in the third quarter.
This launch also marks Nvidia's entry into the stand-alone central processing unit (CPU) market, one that so far has been dominated by AMD and Intel. Nvidia has set its sights on leadership here, so any CPU forecasts will be points to watch.
For the first time, Nvidia recently offered an annual growth forecast, predicting 70% year-over-year revenue growth for the 2028 fiscal year -- that's the fiscal year that begins in early 2027. Investors should look for additional comments, potentially concerning supply constraints and demand, that may offer further clues about what to expect.
Nvidia's headwindsMeanwhile, tight memory supply and higher prices have been and continue to be a headwind for Nvidia. The company might offer investors additional details about how it's handling this challenge. And while we're on the subject of headwinds, it will also be important to listen for any comments on potential sales in China. Restrictions by the U.S. blocked Nvidia's chip sales to China in April 2025, and though the U.S. has given the company the go-ahead, Nvidia still hasn't been able to reenter this high-potential market.
If Nvidia addresses some of these points, my prediction is that Sept. 10 could be a big day for shareholders, and the stock could take off in the days to follow. But even if I'm wrong and Nvidia shares don't react after the Goldman Sachs conference, that's OK. The company, thanks to its solid AI empire, is still well-positioned to deliver a win to investors over the long run.
Nvidia's (NASDAQ: NVDA) business model might be shifting before our eyes.
*Stock prices used were the afternoon prices of Sept. 5, 2026. The video was published on Sept. 7, 2026.
Parkev Tatevosian, CFA has positions in Nvidia. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
Nvidia's (NVDA -2.01%) accomplishments speak for themselves, but despite the stock having grown to a market cap of more than $5 trillion and it becoming the most profitable company in the world, there's still a lot of skepticism facing it.
Even as revenue nearly doubled in its most recent quarter, the stock trades at a price-to-earnings ratio of just 29, roughly in line with the S&P 500, indicating that investors expect its long-term earnings growth to generally resemble the broad-market index, even though it more than doubled net income in its latest quarter and expects strong growth to continue at least through 2027.
There are a number of reasons why Nvidia doesn't get the premium you might expect for a company growing this fast. First, the semiconductor industry is historically cyclical, and investors are expecting the momentum in the AI boom to eventually fade. At that point, Nvidia's revenue and earnings growth could turn negative as it has in past cycles. Second, competitors, including Nvidia's hyperscaler customers, are building their own chips to substitute for Nvidia components. While they're unlikely to replace them entirely, it could signal that Nvidia's competitive advantage is likely to erode over time. Finally, some investors think that depreciation in Nvidia's chips is an outsize risk facing the company and the broader AI boom. If its chips lose their value quickly, that is likely to hurt their selling price and the broader sustainability of AI, as eventually, Nvidia's customers will need to sell enough services to pay for its chips.
This theory, advanced by Michael Burry of "The Big Short" fame, has been used to criticize hyperscalers and neocloud companies, as well as Nvidia.
However, there's some evidence that Nvidia chips are retaining their value much better than the skeptics would expect.
Image source: Nvidia.
Jensen Huang weighs inThe comments and chart below, taken from X, show the market average for live cloud GPU rental costs based on the Ornn H100 SXM Index.
NVIDIA compute is fungible, durable and highly rentable. It is a productive, revenue-generating asset. https://t.co/cvmjaNoiK8
— Jensen Huang (@JensenHuang) September 8, 2026 The H100 is a three-year-old training chip. Its rental price is up 22 percent on the month, to $3.28 an hour.
Every depreciation schedule assumes a chip this old only loses value. The market is paying up for it instead. pic.twitter.com/TNSqgys3vx
— Ornn (@OrnnExchange) September 7, 2026
Image source: Ornn. Via X.
As you can see, rental prices per hour for an H100 GPU, which were first launched nearly four years ago, are up 22% over the last month, even as Nvidia is now launching the new Rubin platform. the Rubin GPU, or R100, will make the H100 two generations old.
Rental and purchase prices for the H100 have indeed come down substantially from their peak in 2023, when generative AI was just starting to take off, but it's noteworthy that they were still able to increase their value at this point, even as newer options on the market emerge. The R100 will have several times as much memory as the H100 and use a superior, updated architecture.
Even the A100, the generation before the H100, remains in high demand, as some customers prefer the cheaper per-hour rental costs of the A100. Rather than disrupting itself with newer chips, Nvidia seems to be benefiting from a multi-tiered pricing model in which premium customers can pay premium prices for the newest chips and budget customers can pay lower prices for older chips.
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What it means for NvidiaThe durability of H100 pricing offers yet another reason to be skeptical of the bearish thesis on the stock and to bet on the company's continued leadership in AI chips.
It's a reminder also that Nvidia, if anything, has been underestimated by Wall Street over the last few years, as the analyst consensus has been woefully short. Similarly, bearish predictions for the stock have fallen flat. Given the fact that the business just doubled in size in the most recent quarter, prices for chips that are now two generations old are holding up, and the stock is trading on par with the S&P 500, Nvidia continues to look like an excellent buy.
Nvidia (NVDA -2.01%) has been the artificial intelligence (AI) chip company leading this technology revolution so far. This is for two reasons: The company got in on the space early, and its commitment to innovation has kept it in the top spot. And investors, excited about Nvidia's soaring earnings, have piled into the stock, seen as a no-brainer AI winner.
These days, however, Nvidia isn't the only chip company positioned to benefit from the AI market, one on track to reach into the trillions of dollars. In fact, another player is making significant progress, and this player is Advanced Micro Devices (AMD +5.90%).
Over time, AMD has become a leader in central processing units (CPUs), the chips that power computers, but in recent quarters, the company is proving its strength in AI chips too -- and investors have recognized it. So far this year, AMD stock is outperforming Nvidia. Now, my prediction is AMD stock could outrun Nvidia over the next three years -- here's the bull case.
Image source: Getty Images.
Nvidia's early start So, first, a bit of background. As mentioned, Nvidia entered this market early and began tailoring its graphics processing units (GPUs) to suit AI about a decade ago. Over the past few years, revenue has taken a tremendous leap as sales of AI chip systems soared. For example, in the second quarter three years ago, revenue came in at $13 billion -- in the recently completed second quarter, that number reached $96 billion.
AMD truly revved up its AI ambitions about three years ago with the launch of the next-generation Instinct MI300 data center GPU family, a clear move into the data center market. Like Nvidia, AMD committed to frequent updates of its AI accelerators, and the company's Helios platform, launched this year, represents a big step forward. This full rackscale infrastructure system "sets a new competitive bar," according to AMD, which says it's designed to deliver more compute and memory capacity than Nvidia's Vera Rubin NVL72 rack.
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A look at AMD's data center revenue growth shows that customers are taking notice -- and jumping on board. For the 2023 full year, AMD's data center revenue totaled $6.5 billion. Today, that's just under the company's data center revenue for one quarter -- in the second quarter, it reached $6.7 billion, more than doubling year-over-year.
Investors are noticing AMD And as I mentioned earlier, investors are noticing too, and they like what they see. This has helped AMD stock outperform Nvidia so far this year -- with the companies climbing 123% and 23%, respectively. Now, one particular negative point for AMD at the moment is that the gains have pushed valuation considerably higher, to a level that I consider expensive. And this is while Nvidia stock looks dirt cheap given the company's track record and long-term prospects. This may hold back value-oriented investors from buying shares in AMD.
AMD PE Ratio (Forward) data by YCharts
Still, my prediction is that aggressive investors looking for a bold AI growth story may continue buying AMD stock even at these high valuation levels, and here's why. I think these investors will focus on revenue growth figures, and here, it's likely that AMD will surpass Nvidia. It's important to keep in mind that it's more difficult to grow in the high double-digits or triple digits when quarterly data center revenue is nearly $90 billion -- and this is the challenge Nvidia faces right now. It's more complicated for the company to deliver explosive revenue growth quarter after quarter because it already generates enormous revenue and dominates the market.
AMD, however, has plenty of room for growth -- and the company can achieve this without truly upsetting Nvidia's market position, considering the level of demand for AI systems. AMD chief Lisa Su has offered words that spur optimism: "We are still in the early innings of a multiyear AI adoption cycle, and the opportunity ahead is enormous," she said in the recent earnings call.
So, as AMD's revenue jumps in the coming quarters, investors are likely to continue piling into the stock. And that's why I predict AMD stock could outrun market leader Nvidia over the coming three years.
Buy NASDAQ:NVDA. The stock is near highs but still “cheap” versus compute peers on 2028 earnings, and Sep 10 is a clear catalyst: Huang’s Goldman fireside chat can push AI demand and next-hardware confidence higher, keeping the market willing to pay up for accelerating earnings. This is a momentum + valuation support setup.
Key Risk: Huang fails to lift growth expectations (enterprise adoption and next-platform demand sound flat), so the “cheap” multiple compresses fast.
Hugging Face deal as a hedge
Buy NASDAQ:NVDA with a focus on the $12.93B Hugging Face angle. If Huang reinforces that Nvidia can broaden beyond hyperscalers via open-weight models and enterprise distribution, the market will price in a more durable revenue stream and less customer concentration risk—secondarily supporting NVDA’s long-term margins and stickiness.
Key Risk: The Hugging Face strategy doesn’t translate into measurable enterprise traction (or the deal faces regulatory/implementation delays), so concentration risk stays unresolved.
Nvidia stock NASDAQ:NVDA is sitting less than 5% below its record high, but the next catalyst arrives on September 10.
Chief executive Jensen Huang will participate in a fireside chat at Goldman Sachs’ Communacopia + Technology Conference at 8:50 a.m. PT, where investors will listen for signals on AI demand, enterprise adoption and Nvidia’s next hardware.
Nvidia closed at $225.73 on Tuesday, down 2.01%, leaving the stock about 4.6% below its $236.54 all-time high.
Nvidia’s shares are close to a record after another AI-driven rally, yet some analysts argue earnings expectations are rising even faster than the stock.
Cantor Fitzgerald analyst C.J. Muse reiterated an Overweight rating and a $350 price target on September 8. Muse said Nvidia trades at the “cheapest” valuation among compute names based on calendar-2028 earnings estimates.
Cantor also argued that Nvidia remains under-owned by hedge funds and long-only managers.
That makes Huang’s appearance more important.
If he reinforces expectations for accelerating revenue or a widening customer base, investors may continue to view Nvidia as inexpensive relative to future earnings.
But that support depends on estimates continuing to rise. If growth expectations flatten, the stock becomes harder to defend.
Nvidia’s next leg depends on proving AI demand is expanding beyond a small group of hyperscalers.
Recent results from Dell strengthened that argument. Dell raised its annual outlook after reporting record revenue and a large AI-server backlog.
D.A. Davidson analyst Gil Luria told MarketWatch that Dell’s results were another sign the enterprise AI-compute market has momentum “beyond the current hyperscaler market.”
They will listen for commentary on enterprise adoption, sovereign AI, supply constraints and Feynman, Nvidia’s next architecture.
A broader customer base would make Nvidia’s growth story more durable.
If AI spending remains concentrated among Microsoft, Amazon, Meta and other technology giants, investors will keep worrying about concentration.
Customer concentration remains the uncomfortable riskThe bullish case has a major weakness, as Nvidia’s latest regulatory filing showed that three direct customers represented 16%, 15% and 13% of total revenue in the first half of fiscal 2027.
Investor Dan Niles highlighted the same issue this week, noting that Nvidia’s largest customers are increasingly designing their own application-specific chips.
That creates an unusual tension: the companies funding Nvidia’s growth also have the strongest incentives to reduce their dependence on its GPUs.
Nvidia’s planned $12.93 billion acquisition of Hugging Face could help address that risk by giving the company access to more than 18 million developers and a stronger route into enterprise AI.
Niles said that open-weight models could eventually dominate LLM usage, allowing Nvidia to sell a broader stack directly to enterprises rather than relying heavily on hyperscalers.
American Airlines (AAL - Free Report) ended the recent trading session at $12.91, demonstrating a -1.68% change from the preceding day's closing price. The stock trailed the S&P 500, which registered a daily loss of 0.58%. On the other hand, the Dow registered a loss of 1.18%, and the technology-centric Nasdaq decreased by 0.32%.
Shares of the world's largest airline witnessed a loss of 12.47% over the previous month, trailing the performance of the Transportation sector with its loss of 3.23%, and the S&P 500's loss of 0.36%.
The investment community will be paying close attention to the earnings performance of American Airlines in its upcoming release. On that day, American Airlines is projected to report earnings of -$0.32 per share, which would represent a year-over-year decline of 88.24%. Alongside, our most recent consensus estimate is anticipating revenue of $16.12 billion, indicating a 17.77% upward movement from the same quarter last year.
For the full year, the Zacks Consensus Estimates are projecting earnings of -$0.16 per share and revenue of $62.99 billion, which would represent changes of -144.44% and +15.3%, respectively, from the prior year.
It is also important to note the recent changes to analyst estimates for American Airlines. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research reveals that these estimate alterations are directly linked with the stock price performance in the near future. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.
The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 977.7% lower. American Airlines is currently sporting a Zacks Rank of #3 (Hold).
The Transportation - Airline industry is part of the Transportation sector. This industry, currently bearing a Zacks Industry Rank of 209, finds itself in the bottom 16% echelons of all 250+ industries.
The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
AT&T on Tuesday said it would work with Amazon to deliver satellite internet to business customers as the telecommunications industry looks to keep SpaceX on its toes.
Key Takeaways T adds the Samsung Galaxy S26 FE with affordable options for new and existing customers.T's New and existing customers can get the Galaxy S26 FE without a trade-in under several pricing options.AT&T offers eligible phone balance payoffs, annual upgrades and a 30-day free wireless trial. AT&T Inc. (T - Free Report) is expanding its smartphone lineup with the new Samsung Galaxy S26 FE. The company is pairing the latest handset with flexible pricing, reliable connectivity and customer-focused benefits and making it available to both new and existing customers through the AT&T app, online and at stores nationwide.
AT&T is offering several affordable options for Samsung’s new phone without requiring a trade-in. Customers who add a line and purchase online can get it for under $3 per month, while new customers purchasing in stores can get it for $7.99 per month. Existing customers who upgrade their devices can purchase it for $12.99 per month.
The company is making it easier for customers to switch from their current wireless provider to AT&T by offering to pay off eligible phone balances of up to $800 per line for up to 10 lines. It also provides flexible annual upgrades through AT&T Next Up Anytime and offers a 30-day free wireless trial, allowing customers to experience its network while keeping their current phone, number and service.
AT&T Business customers can access additional offers, Enterprise Edition benefits, device protection and accessories, while the FirstNet Ready smartphone provides first responders with dedicated coverage, priority and preemption capabilities during emergencies. The offerings are likely to help the company attract new customers and retain existing ones through competitive pricing, flexible upgrades and reliable network services.
How Are Competitors Advancing in Smartphone Offerings?AT&T faces stiff competition from Verizon Communications, Inc. (VZ - Free Report) and T-Mobile US, Inc. (TMUS - Free Report) . Verizon has introduced several smartphone promotions to attract new customers and support device upgrades. The company is offering discounts, trade-in incentives and free or low-cost smartphones with eligible unlimited plans and new lines. Verizon continues to focus on expanding its 5G customer base and driving the adoption of newer devices through flexible upgrade options and incentives for customers on eligible plans.
T-Mobile is emphasizing value and device flexibility through a range of smartphone offers for new and existing customers. The company is promoting deals across popular Apple, Samsung and Google devices. T-Mobile is offering some phones for free with eligible plans or new lines, helping customers access newer devices at lower costs.
T’s Price Performance, Valuation & EstimatesAT&T shares have lost 11.1% over the past year against the industry’s growth of 92.9%.
Image Source: Zacks Investment Research
From a valuation standpoint, AT&T trades at a forward price-to-sales ratio of 1.34, below the industry tally of 8.07.
Image Source: Zacks Investment Research
Earnings estimates for 2026 have increased 1.3% to $2.35 over the past 60 days, while the same for 2027 have risen 1.2% to $2.57.
Image Source: Zacks Investment Research
AT&T currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Tomorrow, AT&T's Chairman and Chief Executive Officer will participate in a fireside chat at 4:05 p.m. ET to discuss the Company's progress on its multi-year growth strategy Key Takeaways: AT&T's structural advantage from years of industry-leading fiber and 5G investments positions the Company to lead the next era of connectivity AT&T reiterates the financial outlook and capital allocation plan provided with its second-quarter 2026 earnings release DALLAS, Sept.
Breaking up a $326 billion streaming giant sounds straightforward until you try to draw the lines. Netflix's financials reveal a business so deliberately tangled that carving out its studio, ads, live events, or games would leave each piece missing the…
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No regulator has proposed breaking up Netflix (NASDAQ:NFLX | NFLX Price Prediction), no activist investor is campaigning for one, and there is no known pressure of this kind. Yet, if someone tried to carve up a $326 billion streamer, what pieces would even emerge, and could anyone value them using public filings?
Why the Financials Resist a Breakup Netflix reports revenue along four geographic lines: United States and Canada, EMEA, Latin America, and Asia-Pacific. In Q2 FY2026, those lines produced $5.43 billion, $4.03 billion, $1.58 billion, and $1.51 billion, respectively, on consolidated revenue of $12.56 billion. The company does not disclose a separate profit and loss statement for advertising, games, or live events, and the income statement contains no geographic operating income breakdown either. Content, technology, and corporate overhead are shared globally.
Studio Versus Platform The classic antitrust move of separating production from distribution has a Hollywood precedent in the 1948 Paramount Decrees. Applied here, it would leave a studio without the recommendation engine, the Open Connect CDN, and the 325+ million paid memberships that finance greenlights. Co-CEO Greg Peters described the integration bluntly on the Q2 earnings call, calling Netflix’s scale “a flywheel of advantages” spanning discovery, R&D, and distribution.
Advertising Split From Subscriptions Advertising is projected to roughly double to about $3 billion in 2026, up from $1.5 billion in 2025. It still depends on the subscription relationship to reach audiences. Management said it manages the business for “total revenue, total revenue growth” and views the gap between ad-tier and ad-free ARPU as “near-term under-realized revenue growth.” A standalone ad company would inherit demand but lose the inventory.
Live Events as a Standalone Live is a promotional lever more than a P&L. Netflix said Live represents 5% of the content budget and only 1% of view hours, yet “six out of top 10 new member sign-up days over the past five years have come from live events.” Detached from the subscriber funnel, the rights lose their strategic rationale.
Games as a Standalone Gaming targets a $150 billion consumer-spend market, excluding China and Russia, with cloud monthly active players up 11x since last October and Playground daily players up 3x since April. Management concedes gaming remains “still very small relative to our overall content spend.” No separate financials exist.
Geographic Separation The only split the disclosures actually support is regional. Even here, content rights, the CDN, and the advertising stack are global assets. All four regions posted double-digit growth inside a shared cost base.
What to Watch With shares last seen trading at $78.27 and a $27.1 billion buyback runway, Sarandos and Peters continue to describe Netflix as “primarily builders, not buyers.” Any serious breakup conversation would need to start with financial disclosures that do not exist today.
Contact [email protected] for any questions or corrections.
The U.S. streaming giant faces fresh regulatory scrutiny in South Africa as authorities examine the cost of digital media and communications services for consumers.
South Africa’s telecommunications regulator plans to investigate prices charged by so-called over-the-top service providers, including Netflix and Meta Platforms Inc.’s (NASDAQ:META) WhatsApp, Bloomberg reported on Monday, citing Business Day.
South Africa Reviews Digital Service CostsThe Independent Communications Authority of South Africa plans to assess what consumers pay for digital services as part of the inquiry, according to the report.
The regulator will separately investigate telecommunications-service costs, potentially affecting major operators including MTN Group Ltd., Vodacom Group Ltd., Telkom SA SOC Ltd. and Cell C Holdings Ltd.
South Africa’s telecommunications-service costs rank among the highest globally, according to the report.
Regulator Builds on Earlier Pricing ReviewsThe inquiry follows previous regulatory reviews of data-service costs and monitoring of prices after authorities allocated high-speed internet spectrum and introduced measures aimed at increasing competition.
The latest move also follows an effort by South Africa’s communications minister to bring in experts to identify policies and other interventions that could lower consumer prices.
The planned review places Netflix and other digital-service providers under closer scrutiny as regulators examine the affordability of services delivered over telecommunications networks.
The regulator had not provided additional comment when Bloomberg sought a response outside normal business hours.
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $90.67. Recent analyst moves include:
Wolfe Research: Outperform (Raises target to $95 on Aug. 25) Baird: Outperform (Lowers target to $90 on July 22) Morgan Stanley: Overweight (Lowers target to $83 on July 17) Top ETF Exposure REX FANG & Innovation Equity Premium Income ETF (NASDAQ:FEPI): 6.86% Weight Global X PureCap MSCI Communication Services ETF (NYSE:GXPC): 4.55% Weight Pathfinder Focused Opportunities ETF (NASDAQ:PFOE): 4.72% Weight Significance: Because Netflix carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
NFLX Price ActionNetflix shares were down 2.28% at $76.47 at the time of publication on Tuesday, according to Benzinga Pro data.
Photo: Shutterstock
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Netflix, Inc. has underperformed the S&P 500 over the last year and five-year periods. This recent underperformance may present a compelling opportunity for portfolio allocation to NFLX. The article examines current fundamentals, risks, and fair value to support the investment thesis.
Analyst’s Disclosure: I/we have a beneficial long position in the shares of NFLX either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
In the latest trading session, Netflix (NFLX - Free Report) closed at $76.77, marking a -1.89% move from the previous day. The stock's performance was behind the S&P 500's daily loss of 0.58%. Meanwhile, the Dow lost 1.18%, and the Nasdaq, a tech-heavy index, lost 0.32%.
Coming into today, shares of the internet video service had gained 2.57% in the past month. In that same time, the Consumer Discretionary sector lost 2.32%, while the S&P 500 lost 0.36%.
Analysts and investors alike will be keeping a close eye on the performance of Netflix in its upcoming earnings disclosure. The company's earnings per share (EPS) are projected to be $0.82, reflecting a 38.98% increase from the same quarter last year. In the meantime, our current consensus estimate forecasts the revenue to be $12.88 billion, indicating a 11.9% growth compared to the corresponding quarter of the prior year.
NFLX's full-year Zacks Consensus Estimates are calling for earnings of $3.59 per share and revenue of $51.25 billion. These results would represent year-over-year changes of +41.9% and +13.42%, respectively.
It's also important for investors to be aware of any recent modifications to analyst estimates for Netflix. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.
Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.
The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, there's been no change in the Zacks Consensus EPS estimate. Currently, Netflix is carrying a Zacks Rank of #3 (Hold).
With respect to valuation, Netflix is currently being traded at a Forward P/E ratio of 21.78. This indicates a premium in contrast to its industry's Forward P/E of 11.02.
Investors should also note that NFLX has a PEG ratio of 1.1 right now. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. The average PEG ratio for the Broadcast Radio and Television industry stood at 0.96 at the close of the market yesterday.
The Broadcast Radio and Television industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 102, putting it in the top 42% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
Be sure to use Zacks.com to monitor all these stock-influencing metrics, and more, throughout the forthcoming trading sessions.
Streaming giant Netflix (NFLX -1.89%) told advertisers in May that its ad-supported plan now reaches more than 250 million monthly active viewers, up from 190 million last November.
And the money is following the audience. Management expects advertising revenue to roughly double this year, to about $3 billion. It's a small piece of the company's forecast of about $51 billion in total revenue for 2026 -- but easily the fastest-growing piece.
I don't think the doubling stops this year, either. I predict Netflix's advertising revenue passes $6 billion in 2027.
The case rests on three things the company already discloses: a growing viewer base, more countries to sell ads in, and ad revenue per viewer with plenty of room to rise.
Image source: Netflix.
The audience is still growing quicklyA monthly active viewer, in Netflix's definition, is a member who watched at least one minute of ads in a month, multiplied by the estimated number of people in that household. The household estimate comes from Netflix's own research, not a third-party firm.
The definition matters because it changed. In May 2025, Netflix counted 94 million monthly active users (profiles, not people), and Amy Reinhard, the company's president of advertising, said at the time that the figure translated to about 170 million viewers.
In other words, the audience didn't nearly triple over the past year, as the headline numbers suggest. Measured viewers against viewers -- a close but not perfect comparison -- it grew by about half. And that's still impressive growth for an audience this large.
The ad plan is also where new members go. Notably, Netflix said more than 60% of sign-ups choose it in the countries where it's available, and more than 80% of ad-plan members watch every week.
More countries are on the way, too. Starting next year, the plan is set to launch in 15 more, including Sweden, Poland, Indonesia, and the Philippines -- on top of the dozen markets where it sells ads today.
Can the revenue double again?In 2025, only the company's third year selling advertising, ad revenue grew to over $1.5 billion (more than 2.5 times its 2024 level). And this year's forecast calls for a rough doubling on top of that.
About $3 billion spread across more than 250 million viewers works out to about $12 per viewer a year, or about a dollar a month. Meanwhile, members pay $8.99 a month just for the U.S. ad plan's subscription, following a price increase in March. (That price is per account, while the ad figure counts every viewer in a household.) In other words, the advertising half of this business still brings in very little per viewer. Even doubling ad revenue on today's audience would only take that figure to about $2 a month.
Advertisers appear willing to pay up. Netflix said in August that commitments from its U.S. upfront (the annual negotiation in which advertisers lock in spending early) nearly doubled this year. Reinhard told advertisers in May that 44% of the members who see an ad on Netflix never see that ad on broadcast TV or other streaming services.
Sure, new ad markets typically start slowly, and a weak economy could cut advertising budgets faster than subscriptions. But if the audience keeps climbing and Netflix earns a bit more ad revenue per viewer, $6 billion is within reach.
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Even $6 billion wouldn't fix everythingAdvertising matters this much because growth elsewhere is cooling. Netflix's second-quarter revenue grew 13% year over year, down from a 17.6% pace in the fourth quarter of 2025, and management forecasts 11.7% for the third quarter. Each quarter has been slower than the last.
Another doubling would mean about $3 billion of new revenue in 2027, or about 6 percentage points of growth on this year's forecast base. For the growth stock, that could be the difference between total growth sliding toward single digits and holding in the low teens.
What advertising can't do is carry the company. Advertising ultimately sells attention, and attention is barely growing. Netflix members watched more than 97 billion hours of content from January through June, up just 2% from the same period of 2025.
Even at $6 billion, advertising would be barely more than a tenth of the streaming service's revenue. Memberships and pricing still set Netflix's growth rate.
So, does Netflix's advertising revenue pass $6 billion in 2027? I believe it does. The audience keeps growing, and the ad revenue per viewer is still tiny.
As for Netflix stock, it trades near $77 as of this writing, or about 20 times expected 2027 earnings. That's arguably a reasonable price. But with growth cooling outside the ad line, I'll watch from the sidelines for now.
Visa said Tuesday morning it will make more data available to companies lending on the blockchain as stablecoin-linked cards are met with strong demand.
The payments giant will pair its settlement data with onchain lending infrastructure, giving lenders greater insight into the financial performance of digital asset-focused fintech firms and card issuers. The program aims to speed up borrowing for these businesses as they grow rapidly.
Visa currently operates more than 160 stablecoin-linked card programs for issuers and program managers, a nearly 200% increase year over year as more crypto businesses launch cards for customers.
"Stablecoin-linked cards are in hypergrowth mode," Cuy Sheffield, head of crypto at Visa, told CNBC in an exclusive interview. He said there are new issuers, including stablecoin neobanks and fintech firms, joining the network and launching cards every week.
To meet the demand surge and need for capital, the company is establishing partnerships to allow new issuers access to financing programs through smart contracts and onchain credit, Sheffield said.
"We've been running a pilot with a company called Credit Coop that is enabling a credit facility for stablecoin-linked card providers, which we think is a positive step forward for how onchain credit can start to come into our network," Sheffield said.
V year to date
Credit Coop says it has processed $2.7 billion in total volume on its platform through smart contracts and no borrower has ever defaulted.
Over the past six years, nearly $700 billion in stablecoin-denominated loans have been sent through onchain lending protocols, according to Visa. The company said much of that activity remains concentrated within crypto markets, but this new offering can help lenders better understand how a business is operating, which could simplify the process of evaluating financing opportunities.
Last year's passage of the GENIUS Act established U.S. stablecoin regulation and turbocharged adoption of the technology. Sheffield called the legislation a "huge" turning point.
"We're seeing banks, we're seeing some of the largest payment companies in the world that are coming to us that want to be able to engage and work with Visa, leveraging stablecoins within our existing products or build new products together with them," he said.
Visa in July launched its stablecoin platform, which allows for settlements, expands stablecoin-linked card programs and aims to help financial institutions access new digital asset capabilities. With that, the payments giant joined traditional competitors like Mastercard, which is also investing heavily in stablecoins and has its own platform. PayPal and Circle also operate their own stablecoin platforms.
SAN FRANCISCO--(BUSINESS WIRE)--Today, Visa (NYSE: V) announced a new approach to onchain credit designed to help stablecoin-linked card programs and fintechs access working capital using onchain lending infrastructure and Visa data. Onchain lending has emerged as one of the fastest-growing segments of digital finance. According to the Visa Onchain Analytics Dashboard, since 2020, more than $694 billion in stablecoin-denominated loans have been sent through onchain lending protocols, creating a.
The renewal builds on a nearly 30-year relationship, connecting audiences to one of the world's leading film festivals while supporting local businesses and economic growth in Canada | Source: Visa Canada
TORONTO, Sept. 08, 2026 (GLOBE NEWSWIRE) -- Visa Canada and the Toronto International Film Festival (TIFF) today announced a multi-year extension of their longstanding partnership. As Visa approaches 30 years as a TIFF partner in 2027, the renewal reinforces a shared commitment to one of the world’s leading film festivals. Together, Visa and TIFF will continue bringing audiences closer to the films, talent and experiences that make TIFF a defining cultural moment each year, while continuing to drive community impact and economic growth in Canada.
Visa’s data from last year’s festival highlights TIFF’s substantial impact on Toronto's economy:
TIFF 2025 Spending: Local small business spending rose 10% year-over-year, while overall spending in the TIFF Zone grew 10%.International Tourism: Foreign visitor spending hit a record high—up 15% year-over-year—accounting for 20% of all local commerce during the festival.Long-Term Growth (Since 2022): The number of small businesses operating in the TIFF Zone expanded by 30%, driving a 20% increase in small business sales.
These metrics demonstrate how world-class events like TIFF create a vibrant “pop-up economy”, driving tourism, boosting local business growth, and stimulating broader economic activity across communities.
“For nearly three decades, Visa has been proud to partner with TIFF, one of the world’s most influential film festivals,” said Michiel Wielhouwer, President and Country Manager, Visa Canada. “Each year, TIFF brings together films, storytellers, talent and audiences from around the world, creating excitement across the city and meaningful benefits for local businesses. We're thrilled to extend this important partnership and continue giving Visa cardholders opportunities to get closer to the Festival experiences they love. We also believe TIFF should be enjoyed by everyone, everywhere, and we're proud to support programs that help more people experience the films, stories and conversations that make the Festival so special.”
As part of the renewed partnership, Visa will continue to provide Visa cardholders with early access to tickets and elevated Festival experiences through priority lines and lounges at the Visa Screening Room at the Princess of Wales Theatre and Roy Thomson Hall.
For 51 years, TIFF has brought audiences together to celebrate bold storytelling, global cinema and the creative talent shaping the future of film.
“Visa has been an excellent partner to TIFF for nearly three decades, and we’re grateful for their continued commitment to our Festival,” said Cameron Bailey, CEO, TIFF. “Their support helps us create memorable experiences that bring people closer to the films and artists they love, and we’re thrilled to continue this partnership and look forward to celebrating many more years of shared experiences together.”
Visa Sharing the Screen is a core part of the renewed partnership, expanding access to TIFF for community organizations and underserved audiences. This September, the program will distribute 500 complimentary screening tickets and host a special Creator Talk with director Rebeca Huntt and soccer icon Megan Rapinoe in support of their documentary RAPINOE, premiering at this year’s Festival.
About Visa
Visa (NYSE: V) is a world leader in digital payments, facilitating transactions between consumers, sellers, financial institutions and government entities across more than 200 countries and territories. Our mission is to connect the world through the most innovative, convenient, reliable and secure payments network, enabling individuals, businesses and economies to thrive. We believe that economies that include everyone everywhere, uplift everyone everywhere and see access as foundational to the future of money movement. Learn more at Visa.com.
