Track market-moving stories before they get noisy

Wegweisende Übernahme eines schnell wachsenden Marktführers für groß angelegte, emissionsfreie stationäre Stromversorgungslösungen auf Wasserstoffbasis Erweitert das Geschäftsmodell von Ballard um eine „Energy-as-a-Service"-Lösung mit einem gebündelten Angebot, das Wasserstoffproduktion, -verteilung, -logistik, -betankung, Brennstoffzellen und stationäre Stromerzeugung kombiniert, um höhere Umsätze pro Megawatt und ein hohes Potenzial für wiederkehrende Umsätze zu erzielen Baut auf einer langjährigen und bewährten Partnerschaft mit GeoPura auf, in deren Rahmen Ballard Brennstoffzellenmotoren für die Wasserstoff-Kraftwerke von GeoPura liefert Erweitert den adressierbaren Markt auf wachstumsstarke Endmärkte auf kapitaleffiziente Weise, gestützt durch eine gesicherte Wasserstoffversorgung und die Unterstützung durch die Regierungspolitik Hält Ballards Kurs zur Rentabilität bis 2028 aufrecht und erschließt Synergien im Bereich des jährlichen EBITDA in Höhe von 25 Millionen US-Dollar , /PRNewswire/ -- Ballard Power Systems Inc. (NASDAQ: BLDP) (TSX: BLDP) („Ballard", das „Unternehmen"), ein weltweit führender Anbieter von Wasserstoff-Brennstoffzellentechnologie, gab heute bekannt, dass es eine endgültige Vereinbarung (die „Vereinbarung") über den Erwerb von GeoPura Limited („GeoPura"), einem Anbieter emissionsfreier, wasserstoffbasierter Energielösungen, geschlossen hat (die „Transaktion"). Die Transaktion umfasst einen Vorab-Kaufpreis in Höhe von 275,0 Millionen Pfund („Vorauszahlung"), der durch eine Kombination aus 82,5 Millionen Pfund aus den Barreserven von Ballard und der Ausgabe von ca. 50,8 Millionen Ballard-Stammaktien an die GeoPura-Aktionäre zu einem Preis von 5,02 US-Dollar pro Aktie finanziert wird, basierend auf dem volumengewichteten Durchschnittskurs der Ballard-Aktie der letzten 30 Tage. Zusätzlich zur Vorabzahlung wird Ballard eine bedingte Gegenleistung von bis zu 27,5 Millionen Pfund zahlen, sofern GeoPura nach Abschluss der Transaktion bestimmte festgelegte finanzielle Meilensteine erreicht. Der gesamte Unternehmenswert1 der Transaktion, einschließlich der Übernahme der Nettoverschuldung von GeoPura und ohne Berücksichtigung der bedingten Gegenleistung, beträgt 301,1 Millionen Pfund (~400 Millionen US-Dollar).

GeoPura CEO Andrew Cunningham (left) and CTO Theo Elmer (right) in front of an HPU-2 500kW system containing Ballard Fuel Cell Engines.

Ballard Power Systems Inc. Die Transaktion stellt eine transformative Übernahme dar, die Ballard als vertikal integrierten und kapitaleffizienten „Energy-as-a-Service" („EaaS")-Anbieter etabliert, dessen End-to-End-Kompetenzen die Bereiche Wasserstoffproduktion, -verteilung, -logistik, -betankung, Brennstoffzellen sowie stationäre Hochleistungsstromversorgungslösungen umfassen.

GeoPura wurde 2019 gegründet und hat seinen Hauptsitz im Vereinigten Königreich. Das Unternehmen hat ein schnell wachsendes Geschäft aufgebaut, dessen Schwerpunkt auf der Entwicklung, dem Leasing und dem Verkauf von Wasserstoff-Stromversorgungsanlagen („HPUs") sowie von Wasserstoff als Brennstoff liegt, der über seine drei Produktionsstandorte geliefert wird, darunter eine 50-prozentige Beteiligung an dem im Vereinigten Königreich ansässigen Unternehmen HyMarnham Power. Das kombinierte Angebot aus HPUs und Wasserstoff bietet eine wettbewerbsfähige, netzunabhängige Stromversorgungslösung mit hoher Zuverlässigkeit, sofortiger Reaktionsfähigkeit, geringem Geräuschpegel und null Emissionen für eine Vielzahl von Endmärkten. Zum breiten Kundenstamm von GeoPura zählen unter anderem Aggreko, Balfour Beatty, die BBC, Disney, Equinix, Microsoft, Netflix, Sunbelt Rentals sowie das britische Verteidigungsministerium.

Die Transaktion baut auf einer bewährten Partnerschaft zwischen Ballard und GeoPura sowie einer starken strategischen Ausrichtung auf. Die in Großbritannien entwickelte Technologie und die britische Fertigung von GeoPura ergänzen Ballards kanadisches Fachwissen im Bereich Brennstoffzellen und schaffen so eine Plattform, die auf gemeinsamen Werten, einer gemeinsamen Geschichte und dem Engagement für zuverlässige, emissionsfreie Energie basiert. Diese kanadisch-britische Kombination unterstützt die globale Expansion, indem sie das Wasserstoff-Ökosystem von GeoPura mit der erstklassigen Brennstoffzellenplattform von Ballard verbindet, um ein gebündeltes Kundenangebot bereitzustellen und erhebliche Effizienzsteigerungen für bestehende und zukünftige Kunden zu ermöglichen.

STELLUNGNAHME DER GESCHÄFTSFÜHRUNG 

Marty Neese, Präsident und Chief Executive Officer von Ballard, kommentierte: „Dies ist eine wahrhaft transformative Übernahme, die Ballard als führenden, vollintegrierten Anbieter eines Wasserstoff-Ökosystems etabliert und uns in die Lage versetzt, von der sich beschleunigenden globalen Energiewende und der steigenden Nachfrage nach Energiesicherheit zu profitieren. Das außergewöhnliche Team von GeoPura hat ein erstklassiges Geschäft für Wasserstoff-Energieversorgungslösungen mit zuverlässiger Technologie, erstklassigen Kundenbeziehungen und einer attraktiven Wachstumskurve aufgebaut. Durch die Kombination der erstklassigen Brennstoffzellentechnologie von Ballard mit dem ‚Energy-as-a-Service'-Geschäftsmodell von GeoPura schaffen wir ein Unternehmen, das gut positioniert ist, um Endmärkte zu bedienen, die sichere, zuverlässige, geräuscharme und emissionsfreie Energie für ihre geschäftskritischen Anwendungen benötigen. Diese Übernahme beschleunigt unser Umsatzwachstum erheblich, verlagert unser Geschäft hin zu wiederkehrenden, margenstarken Umsätzen und stärkt unseren Weg zur Rentabilität bis 2028. Wir freuen uns sehr, das GeoPura-Team bei Ballard willkommen zu heißen und die vor uns liegenden bedeutenden Chancen zu nutzen."

Andrew Cunningham, Gründer und Chief Executive Officer von GeoPura, kommentierte: „Wenn Ihre Arbeit Film- und Live-Fernsehproduktionen, Krankenhäuser, den Verteidigungssektor, kritische Infrastruktur und das Bauwesen mit zuverlässigen netzunabhängigen und netzunterstützenden Systemen versorgt, ist Ihr Antriebslieferant entscheidend für Ihren Erfolg. Für GeoPura hat sich Ballard deutlich von der Konkurrenz abgehoben. Sie sind der einzige Partner, der die von uns benötigten Brennstoffzellen-Kompetenzen liefern kann, gestützt durch das fundierte technische Know-how, das erforderlich ist, um unübertroffene Produktqualität von Kilowatt bis Megawatt zu gewährleisten. Ich freue mich unglaublich darauf, die Hochleistungskompetenzen von GeoPura mit der Produktqualität von Ballard zu verbinden, um Kunden weltweit den größtmöglichen Nutzen aus unserem vollständig integrierten ‚Energy-as-a-Service'-Angebot zu bieten."

Der Vorsitzende von GeoPura, Lord Richard Harrington, ehemaliger Minister für Wirtschaft und Industrie und Vorsitzender von Make UK, sagte: „Die Investition von Ballard spiegelt das Vertrauen des Unternehmens in ein britisches Fertigungsunternehmen wider, das britische Technologie nutzt, die nun in die ganze Welt exportiert wird. Ich bin begeistert von den globalen Expansionsplänen des Unternehmens und freue mich darauf, es auf diesem Weg zu unterstützen."

ÜBERZEUGENDE STRATEGISCHE GRÜNDE

Aufbau eines Ökosystems mit einem gebündelten Angebot: Durch die Kombination der Brennstoffzellentechnologie von Ballard mit den integrierten Kompetenzen von GeoPura in den Bereichen Wasserstoffproduktion, Logistik und stationäre Stromversorgung maximiert das Unternehmen den Umsatz pro Megawatt über mehrere Kundenkontaktpunkte hinweg. Dies führt zu einer deutlichen Steigerung des über die gesamte Lebensdauer erzielten Werts pro eingesetztem Megawatt. Zugang zum Markt für stationäre Stromversorgung mit bewährtem Produktportfolio: Dies ebnet Ballards Einstieg in den wachstumsstarken Markt für stationäre Stromversorgung mit einer sofort einsetzbaren und bewährten Produktpalette an Wasserstoff-Stromaggregaten, die eine Zuverlässigkeit von „sechs Neunen" (99,9999 % Verfügbarkeit) bieten und über einen gut etablierten Kundenstamm verfügen. Die HPUs von GeoPura kommen in den Bereichen Bauwesen, Film und Fernsehen, Veranstaltungen, Transport, Gesundheitswesen, Verteidigung und potenziell auch in den schnell wachsenden Rechenzentrumsanwendungen zum Einsatz, wodurch Ballard in die Lage versetzt wird, diese wachsenden Märkte weltweit zu erschließen. Beschleunigung von Wachstum und Rentabilität: Das Geschäftsmodell von GeoPura generiert wiederkehrende Umsätze aus dem Leasing von HPUs inklusive Wasserstoffversorgung und Logistik sowie aus dem Verkauf von HPUs und Wasserstoff. GeoPura erwartet für 2026 einen Umsatz von etwa 38 Millionen Pfund. Zusammen mit Ballard formen der große adressierbare Gesamtmarkt und die langfristigen positiven Rahmenbedingungen das Finanzprofil von Ballard neu zu einem EaaS-Betreiber mit beschleunigtem Wachstum und einem klareren Weg zu Ballards Rentabilitätsziel für 2028. Erschließung des Wachstums des gesamten adressierbaren Marktes durch ein förderliches politisches Umfeld: Die stationäre Energieplattform von GeoPura erweitert den adressierbaren Markt von Ballard über den Mobilitätsbereich hinaus in wachstumsstarke Endmärkte, in denen HPUs als systemkritische Energieinfrastruktur dienen. GeoPura verfügt zudem über den ersten Vertrag der britischen Regierung im Rahmen der „Hydrogen Allocation Round 1" (HAR1), einem Fördermechanismus, der über einen Zeitraum von fünfzehn Jahren Einnahmen aus der Wasserstoffproduktion garantiert und somit eine erhebliche Umsatzvorhersehbarkeit bietet. Diese politische Unterstützung, kombiniert mit GeoPuras 50-prozentiger Beteiligung an der Wasserstoffproduktionsanlage HyMarnham und deren kapitaleffizienter Erweiterungskapazität, versetzt Ballard in die einzigartige Lage, seine Marktreichweite auszubauen und von den weltweit beschleunigten Dekarbonisierungsvorgaben sowie dem Bedarf an kritischer Energie zu profitieren. Starke Synergieeffekte: Die langjährige Technologiepartnerschaft zwischen Ballard und GeoPura bildet ein bewährtes Fundament für das weitere Wachstum des Unternehmens und die Integration der beiden sich hervorragend ergänzenden Teams. Ballard wird strukturelle Kostenvorteile erzielen, die die Wettbewerbsposition stärken und außerdem die Nachfrage in den HPU-Endmärkten ankurbeln. Es wurden EBITDA-Synergien in Höhe von rund 25 Millionen US-Dollar ermittelt, die mit hoher Sicherheit erzielt werden können und auf Umsatzwachstum sowie Kostenoptimierung beruhen. Das erfahrene Managementteam von GeoPura stärkt die Umsetzung und beschleunigt die Wertrealisierung. TRANSAKTIONSBEDINGUNGEN UND FINANZIERUNGSDETAILS

Gemäß den Bedingungen der Vereinbarung wird Ballard 100 % von GeoPura, einschließlich der 50-prozentigen Beteiligung von GeoPura an HyMarnham Power, für eine Gesamtvorauszahlung in Höhe von 275,0 Millionen Pfund erwerben. Die Vorauszahlung wird zu 82,5 Millionen £ aus den Barreserven von Ballard finanziert, der Restbetrag erfolgt durch die Ausgabe neuer Ballard-Stammaktien an die GeoPura-Aktionäre, wodurch die starke Bilanz von Ballard erhalten bleibt. Die Anzahl der an die GeoPura-Aktionäre auszugebenden Ballard-Aktien beläuft sich auf ca. 50,8 Millionen; diese Zahl wurde auf der Grundlage des volumengewichteten Durchschnittskurses der Ballard-Stammaktien in den 30 Tagen vor Bekanntgabe der Transaktion berechnet. Nach Abschluss der Transaktion werden die GeoPura-Aktionäre voraussichtlich auf Pro-forma-Basis ca. 14,4 % an Ballard halten. Die GeoPura-Aktionäre werden zudem übliche Lock-up-Vereinbarungen abschließen, die den Verkauf oder die Übertragung ihrer Ballard-Stammaktien für einen bestimmten Zeitraum nach Abschluss der Transaktion einschränken.

Zusätzlich zur Vorauszahlung wird Ballard eine bedingte Gegenleistung von bis zu 27,5 Millionen Pfund zahlen, sofern GeoPura nach Abschluss der Transaktion bestimmte finanzielle Meilensteine erreicht.

Der gesamte Unternehmenswert der Transaktion1, einschließlich der Übernahme der Nettoverschuldung von GeoPura und ohne Berücksichtigung der bedingten Gegenleistung, beträgt 301,1 Millionen £ (~400 Millionen US$).

WEITERE INFORMATIONEN UND ABSCHLUSS

Nach Abschluss der Transaktion wird Andrew Cunningham, Gründer und Chief Executive Officer von GeoPura, voraussichtlich die Rolle des Präsidenten von Ballard übernehmen und an Marty Neese, den Chief Executive Officer von Ballard, berichten. Darüber hinaus beabsichtigt Ballard, Andrew Cunningham und Lord Richard Harrington, den derzeitigen Vorsitzenden von GeoPura, als von den GeoPura-Aktionären benannte Kandidaten in den Vorstand aufzunehmen.

Die Transaktion wurde vom Vorstand sowohl von Ballard als auch von GeoPura einstimmig genehmigt und unterliegt den für eine Transaktion dieser Art üblichen Abschlussbedingungen, einschließlich der Anmeldung gemäß dem britischen „National Security and Investment Act" sowie der Genehmigung der TSX für die Ausgabe der Ballard-Stammaktien im Rahmen der Transaktion. Die Transaktion wird voraussichtlich in der zweiten Hälfte des Jahres 2026 abgeschlossen.

BERATER

RBC Capital Markets fungiert als exklusiver Finanzberater von Ballard. Ashurst LLP und Stikeman Elliott LLP fungieren als Rechtsberater von Ballard.

Barclays fungiert als exklusiver Finanzberater von GeoPura und Winston Taylor LLP fungiert als Rechtsberater von GeoPura.

TELEKONFERENZ UND WEBCAST

Ballard wird am 23. Juni 2026 um 11:00 Uhr ET einen Webcast veranstalten, um die Transaktion zu erörtern. Marty Neese, Präsident und Vorstandsvorsitzender von Ballard, Kate Igbalode, Senior Vice President und Finanzvorstand von Ballard, sowie Andrew Cunningham, Gründer und Vorstandsvorsitzender von GeoPura, werden im Rahmen des Webcasts eine Reded halten. Sie können an der Live-Telefonkonferenz teilnehmen, indem Sie die Nummer +1-833-821-2814 wählen (gebührenfrei in Kanada und den USA). Alternativ kann der Live-Webcast über einen Link auf der Homepage von Ballard (www.ballard.com) oder über den folgenden Link aufgerufen werden: Ankündigung einer Telefonkonferenz

Informationen zu Ballard Power Systems
Ballard Power Systems (NASDAQ: BLDP; TSX: BLDP) hat die Vision, Brennstoffzellenenergie für einen nachhaltigen Planeten zu liefern. Die emissionsfreien PEM-Brennstoffzellen von Ballard ermöglichen die Elektrifizierung der Mobilität, einschließlich Bussen, Lastkraftwagen, Zügen, Schiffen und stationärer Energieversorgung. Um mehr über Ballard zu erfahren, besuchen Sie bitte www.ballard.com.

Warnhinweise zu zukunftsgerichteten Informationen
Diese Pressemitteilung enthält bestimmte Informationen, die „zukunftsgerichtete Informationen" im Sinne der geltenden kanadischen Wertpapiergesetze und „zukunftsgerichtete Aussagen" im Sinne der geltenden US-amerikanischen Wertpapiergesetze darstellen können (zusammen „zukunftsgerichtete Aussagen"). Zukunftsgerichtete Aussagen lassen sich häufig, wenn auch nicht immer, an der Verwendung von Begriffen wie „könnte", „wird", „erwarten", „beabsichtigen", „planen", „schätzen", „voraussehen", „fortsetzen" und „Prognose" oder durch andere ähnliche Begriffe erkennen und können unter anderem Aussagen bezüglich der Transaktion, ihrer Bedingungen und ihres Abschlusses, der Vorteile der Transaktion für die Ballard-Aktionäre und andere Interessengruppen, der Pläne, Strategien und Ziele der Unternehmensleitung sowie der erwarteten Kosten oder Produktionsmengen umfassen. Es kann nicht garantiert werden, dass die Transaktion zu den in dieser Pressemitteilung dargelegten Bedingungen oder überhaupt abgeschlossen wird. Zukunftsgerichtete Aussagen beinhalten naturgemäß bekannte und unbekannte Risiken, Ungewissheiten und andere Faktoren, die dazu führen können, dass die tatsächlichen Ergebnisse, Leistungen und Erfolge des Unternehmens deutlich von künftigen Ergebnissen, Leistungen oder Erfolgen abweichen. Zu den relevanten Faktoren zählen unter anderem die Erteilung der erforderlichen behördlichen Genehmigungen für die Transaktion, Wechselkursschwankungen, die allgemeine Wirtschaftslage, gestiegene Kosten, politische und soziale Risiken, Änderungen des regulatorischen Rahmens, in dem das Unternehmen tätig ist oder künftig tätig sein könnte, Umweltbedingungen, die Gewinnung und Bindung von Personal sowie potenzielle Rechtsstreitigkeiten. Zukunftsgerichtete Aussagen basieren auf den nach bestem Wissen und Gewissen getroffenen Annahmen des Unternehmens und seiner Geschäftsführung hinsichtlich der finanziellen, marktbezogenen, regulatorischen und sonstigen relevanten Rahmenbedingungen, die in Zukunft bestehen und das Geschäft sowie den Betrieb des Unternehmens beeinflussen werden. Das Unternehmen gibt keine Gewähr dafür, dass sich die Annahmen, auf denen die zukunftsgerichteten Aussagen beruhen, als richtig erweisen werden oder dass die Geschäftstätigkeit oder der Betrieb des Unternehmens nicht in wesentlicher Weise durch diese oder andere Faktoren beeinträchtigt wird, die vom Unternehmen oder seiner Geschäftsführung nicht vorhergesehen wurden oder vorhersehbar sind oder die außerhalb der Kontrolle des Unternehmens liegen. Obwohl das Unternehmen versucht und versucht hat, Faktoren zu identifizieren, die dazu führen könnten, dass tatsächliche Handlungen, Ereignisse oder Ergebnisse wesentlich von den in den zukunftsgerichteten Aussagen offenbarten abweichen, kann es andere Faktoren geben, die dazu führen könnten, dass tatsächliche Ergebnisse, Leistungen, Erfolge oder Ereignisse nicht den Erwartungen, Schätzungen oder Absichten entsprechen, und viele Ereignisse liegen außerhalb der zumutbaren Kontrolle des Unternehmens. Dementsprechend werden die Leser darauf hingewiesen, sich nicht übermäßig auf zukunftsgerichtete Aussagen zu verlassen. Zukunftsgerichtete Aussagen in dieser Pressemitteilung gelten ausschließlich zum Zeitpunkt ihrer Veröffentlichung. Vorbehaltlich etwaiger fortbestehender Verpflichtungen gemäß geltendem Recht oder einschlägigen Börsenvorschriften übernimmt das Unternehmen mit der Bereitstellung dieser Informationen keine Verpflichtung, die zukunftsgerichteten Aussagen öffentlich zu aktualisieren oder zu revidieren oder über Änderungen von Ereignissen, Bedingungen oder Umständen zu informieren.

Kontaktdaten
Sumit Kundu – Investor Relations, +1.604.360.9714 oder [email protected]

1Einschließlich der Übernahme von 50 % der Verbindlichkeiten im Zusammenhang mit dem HyMarnham-Joint-Venture.

Foto - https://mma.prnewswire.com/media/2998757/Ballard_Power_Systems_Inc__BALLARD_ANNOUNCES_ACQUISITION_OF_UK_B.jpg
Foto - https://mma.prnewswire.com/media/2998756/Ballard_Power_Systems_Inc__BALLARD_ANNOUNCES_ACQUISITION_OF_UK_B.jpg

The number jumped out at me the moment I saw it. Lennar's (LEN +6.15%) average sales price for homes delivered in the second quarter of 2026 was $371,000 -- a price the company hasn't seen since the first quarter of 2017, when it averaged $365,000.

That's not a small number to sit with here. It means that one of America's largest homebuilders just rolled back its prices by nearly a decade in nominal terms. In a country where the median existing home now sits above $412,000, let's get into the signal this is sending.

Today's Change

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6.15

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5.38

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92.72

How Lennar got here This didn't happen because the housing market collapsed. Lennar delivered 20,519 homes in Q2 2026 -- a 2% year-over-year increase -- and maintained full-year delivery guidance of 82,000 to 83,000 homes. It happened because Lennar deliberately chose to compete on price, rather than wait for conditions to improve.

CEO Stuart Miller was direct about the math in the earnings release: The $371,000 price reflected approximately 12.9% in incentives, along with base price adjustments to keep volume moving. That incentive level is high by historical standards -- the company's normalized range is 4% to 6% -- but Miller noted that it's narrowing for the first time in three years as the gaps between elevated mortgage rates, home prices, and household incomes start to close.

The goal is volume now, margin recovery later. It's a patient strategy, and the operational data supports it -- construction costs are down 13% over the past two years, and cycle times have hit a record low of 121 days.

Image source: Getty Images.

The rate cut problem Lower home prices are not, by themselves, a solution to the affordability crisis. They're one part of a much harder equation.

The 30-year fixed mortgage rate sits at roughly 6.47% as of this week. Qualifying for a mortgage on the median existing home at today's rates requires an annual household income of approximately $95,000 -- well above what most first-time buyers earn. First-time buyers now represent just 21% of the market, the lowest share in 44 years. The NAHB estimates a nationwide shortage of roughly 1.2 million housing units. There is no shortage of demand -- there is a shortage of buyers who can afford to act on it.

Here's where Lennar's price reduction becomes relevant in a way that a simple headline misses: a $371,000 home financed at 6.47% on a 30-year real estate mortgage carries a monthly principal and interest payment of roughly $2,340. The same home priced at $412,000 -- the median existing resale -- carries a payment closer to $2,600. That $260 monthly difference won't solve the affordability crisis, but it represents real purchasing power for buyers stretching to qualify. Think of it as a builder clearing a path through a thicket that policy alone can't cut through fast enough.

What Lennar expects next -- and the investor takeaway Lennar guided for third-quarter 2026 average home prices in the range of $375,000 to $380,000, with gross margin improving to approximately 16% as incentive levels moderate and cost discipline compounds. That modest price increase suggests that the company believes the floor is in -- that it has reached a price point where demand is sufficient, and margin recovery can begin without chasing buyers away.

The gap between today's builder prices and existing resale inventory is now wide enough that new construction is increasingly the most accessible entry point for buyers who want to own. That's an unusual dynamic -- new homes are traditionally priced at a premium to existing ones -- and it reflects how much builders have absorbed to keep the market moving.

For Lennar shareholders, the compressed margin cycle is painful, but the logic behind it is sound. Miller used the phrase "execute around the affordability challenge" on the earnings call, rather than "wait it out." That posture -- active adaptation rather than passive patience -- is what separates a resilient operator from one that just hopes conditions normalize.

For the broader housing market, Lennar's pricing is a pressure valve. The structural shortage won't be solved by incentives. However, a major national builder consistently delivering homes under $400,000 in a world where resale inventory sits well above that is a real, meaningful development for the buyers who need it most.

Key Takeaways AMKR is expanding its advanced packaging footprint as AI and computing demand drive adoption.AMKR trades at a valuation discount to industry and sector peers despite its strong momentum.AMKR's Arizona expansion boosts U.S. packaging capacity and supports long-term growth prospects. Amkor Technology (AMKR - Free Report) has emerged as one of the top-performing semiconductor stocks in 2026, with shares soaring 119.7% year to date. The stock has significantly outperformed the Zacks Electronics-Semiconductors industry’s gain of 63.3% and the broader Zacks Computer & Technology sector’s return of 18.7% during the same period.

The rally has been driven by strengthening demand for advanced packaging solutions, growing exposure to artificial intelligence and high-performance computing applications and improving operating performance. AMKR has also benefited from deepening relationships with leading semiconductor companies and expanding opportunities across data center, smartphone and automotive markets.

While such substantial gains may prompt some investors to consider taking profits, recent developments suggest compelling reasons for current shareholders to maintain their positions through the second half of 2026. However, prospective investors may benefit from waiting for more attractive entry points given the current valuation levels.

AMKR Outperforms Industry and Sector
Image Source: Zacks Investment Research

Advanced Packaging Demand Remains a Structural TailwindAMKR's growth engine remains its expanding footprint in advanced packaging, where chiplet-based architectures and high bandwidth memory integration push packaging decisions earlier into system design. Outside of Taiwan, where Taiwan Semiconductor Manufacturing Company (TSM - Free Report) handles much of the industry's most advanced packaging work, AMKR remains one of the few suppliers able to execute at this level of complexity and scale. Its High Density Fan Out (HDFO) bridge program with Advanced Micro Devices (AMD - Free Report) is expected to ramp in 2027, initially in South Korea before onshoring to Arizona, while NVIDIA (NVDA - Free Report) has validated AMKR's ability to turn complex silicon into deployable systems at volume.

Computing revenues rose 19% year over year in the first quarter of 2026, with AI data center strength offsetting soft personal computer demand. For the second quarter, computing revenue is expected to grow in the mid single digits sequentially on the new data center CPU ramp, while full-year advanced packaging revenue is projected to roughly triple in 2026. Automotive and industrial revenue also advanced on rising ADAS and in-car computing content.

Beyond Advanced Micro Devices, the HDFO platform spans over five customers at various qualification stages, with NVIDIA's broader high-performance computing ecosystem further expanding AMKR's data center pipeline, together supporting double-digit growth across most end markets.

The Zacks Consensus Estimate for AMKR's 2026 earnings is pegged at $2.08 per share, indicating growth of 38.67% year over year

Valuation Offers a Cushion Despite the RallyDespite its strong rally, AMKR remains reasonably valued, trading at a forward 12-month price-to-sales ratio of 2.74X, well below the industry average of 9.95X and the broader sector average of 6.67X. The discount appears noteworthy considering AMKR's expanding presence across AI data centers tied to customers like NVIDIA, high-performance computing and premium smartphones. Growing demand for advanced packaging and testing services, stronger participation in next-generation semiconductor designs and a richer business mix are expected to support long-term growth. As AI adoption accelerates and semiconductor content continues to increase across servers and smartphones, AMKR is well-positioned to benefit from rising packaging complexity and higher value opportunities.

AMKR Trades at Discounted P/S Valuation
Image Source: Zacks Investment Research

Arizona Expansion Strengthens Long-Term Growth ProspectsAMKR's Arizona buildout strengthens its long-term growth profile, adding U.S.-based advanced packaging and test capacity as the technology becomes increasingly critical for AI and high-performance computing. AMD's new data center CPU device, slated to ramp in South Korea starting in 2027, is among the programs expected to eventually onshore into Arizona. The facility positions AMKR as one of the few large-scale outsourced assembly and test providers in the United States.

The buildout also aligns with capacity expansion by TSM and other industry players, strengthening the broader U.S. semiconductor ecosystem. Startup costs should weigh modestly on near-term profitability, but Arizona is expected to support higher value programs and lift AMKR's long-term growth and earnings potential.

ConclusionAMKR continues to benefit from strong momentum in advanced packaging, rising AI and high-performance computing demand and investments that expand its long-term growth opportunities. The company is strengthening its position in a market where packaging complexity is becoming a key differentiator relative to large-scale peers such as TSM, while maintaining a valuation discount relative to industry and sector peers. Although the stock has surged sharply year to date, the underlying growth drivers remain intact and should support business performance in the coming years.

With a Zacks Rank #3 (Hold), existing shareholders may consider maintaining their positions and participating in the company's long-term growth story, while prospective investors may wait for a more attractive entry point following the stock's sharp run-up. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways SBAC gained 14.8% in three months, outpacing the industry's 10.3% growth on tower leasing strength.SBA Communications sees healthy 2026 leasing activity backed by rising backlog and carrier capacity needs.SBAC expanded with site buys, land purchases and new towers while continuing consistent dividend growth. SBA Communications’ (SBAC - Free Report) shares have rallied 14.8% in the past three months compared with the industry’s growth of 10.3%.

The company benefits from rising wireless data demand through long-term tower leasing, steady colocation activity, strategic tower expansion and site acquisitions, complemented by site development services and consistent dividend growth, supporting long-term shareholder value.

Analysts seem bullish on this Zacks Rank #3 (Hold) stock. The Zacks Consensus Estimate for its 2026 AFFO per share has been revised northward by 6 cents to $12.20 over the past two months.

Image Source: Zacks Investment Research

Factors Behind SBAC Stock’s Price SurgeMobile data usage continues to rise as carriers expand coverage, densify networks and upgrade sites with additional spectrum bands and technologies such as C-band and massive MIMO antennas. Fixed wireless access growth adds load to carrier networks and supports additional equipment needs at existing macro sites. This activity underpins demand for SBA Communications’ tower infrastructure across the United States and its international markets in Central America, South America and Africa.

SBA Communications generates most of its revenues from long-term tower leases, which support visibility in cash flows and high tower cash flow margins. In the first quarter of 2026, U.S. leasing activity was driven largely by new colocations as wireless carriers added capacity. Management expects healthy leasing activity to continue through the remainder of 2026, supported by an increasing domestic leasing backlog.

SBA Communications provides site development services in the United States, helping carriers with site acquisition, zoning, construction and equipment installation. The segment also offers installation, optimization and integration services across network technologies. While site development is a smaller contributor to operating profit than site leasing, it deepens customer relationships and helps the company participate in network build cycles beyond pure colocation.

SBA Communications continues to expand its footprint through selective acquisitions, land purchases and new tower builds in markets where carrier demand supports returns. As of March 31, 2026, the company owned or operated 46,358 communication sites. In the first quarter of 2026, it acquired 10 communication sites and the rights to the land underneath about 3,900 communication sites in Guatemala for $133 million, and built 80 towers. Subsequent to quarter-end, the company purchased or is under contract to purchase 56 sites for $36.9 million in cash, with the transactions expected to close by the end of the third quarter of 2026.

SBA Communications’ dividend hikes demonstrate its commitment to driving shareholder value and superior capital-distribution ability. The company has increased its dividend five times in the past five years, and its five-year annualized dividend growth rate is 17.06%. Given SBA Communications’ solid operating platform, the dividend distribution is expected to be sustainable over the long run.

Key Concerns for SBACCustomer concentration, Sprint and EchoStar churn, leverage, interest expenses, currency fluctuations and technology shifts can limit SBA Communications near-term growth and valuation.

Stocks to ConsiderSome better-ranked stocks from the broader REIT sector are Lamar Advertising (LAMR - Free Report) and Vornado Realty Trust (VNO - Free Report) , each carrying a Zacks Rank of 2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The Zacks Consensus Estimate for LAMR’s 2026 FFO per share is pegged at $8.81, which indicates year-over-year growth of 6.66%.

The Zacks Consensus Estimate for VNO’s full-year FFO per share is pinned at $2.34, which calls for an increase of 0.86% from the year-ago period.

Note: Anything related to earnings presented in this write-up represents FFO, a widely used metric to gauge the performance of REITs.

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Nation’s Third-Largest Convenience Retailer and Fifth-Largest Pizza Chain Unveils New Plan and Goals Focused on Accelerating Food and Beverage, Store Growth and Operational Efficiency

ANKENY, Iowa--(BUSINESS WIRE)--Casey’s General Stores, Inc. (NASDAQ: CASY), a leading convenience store chain in the United States, today unveiled its new three-year strategic plan. Since introducing its last strategic plan in 2023, the company has exceeded its strategic and financial targets, adding more than 500 stores and joining the S&P 500.

“Our success over the last three years reinforces what makes Casey’s unique: a differentiated model that brings together restaurant-quality food, best-in-class convenience, and fuel at scale," said Darren Rebelez, President and CEO at Casey's.

Share “Our success over the last three years reinforces what makes Casey’s unique: a differentiated model that brings together restaurant-quality food, best-in-class convenience, and fuel at scale," said Darren Rebelez, President and Chief Executive Officer at Casey’s. “As we enter our next three-year plan, we are focused on expanding our food business, growing our store base, and leveraging technology to improve efficiency and execution. We believe these priorities will enable us to continue gaining market share, driving profitable growth, and delivering long-term value for our shareholders.”

Casey's new three-year strategic plan is centered on three priorities:

Accelerating Food and Beverage: Food continues to be a key growth driver for Casey’s. Building on its position as one of the nation’s leading pizza chains, Casey’s will continue investing in its made-to-order offerings, including pizza and chicken wings, with plans to expand its private-brand portfolio. "Our food business is at the center of Casey’s three-year growth strategy and continues to be one of our strongest differentiators," said Tom Brennan, Chief Merchandising Officer at Casey’s. "Prepared foods and nonalcoholic beverages are driving strong inside sales, and we’re continuing to build on the loyalty we’ve earned through our more than 40 years in the pizza business with new offerings like wings and fries. In Des Moines, where wings have been available for more than a year, sales are up 20% year over year, reinforcing the significant opportunity we see as we expand the platform across our nearly 3,000 stores and further establish Casey’s as a food destination."

Expanding Casey’s Country and Scale: Casey’s plans to add at least 400 stores through a combination of strategic acquisitions and new-store development. By expanding its presence in both existing and new markets, Casey’s will bring its distinctive food-first convenience offering to more guests, while leveraging its proven expertise in acquiring and successfully integrating stores. “Our growth strategy is expanding Casey’s Country in a disciplined way," said Ena Williams, Chief Operations Officer at Casey’s. "We’ve shown that we can grow through both new stores and acquisitions. That includes the successful integration of CEFCO, our largest acquisition to date, which strengthened our presence in Texas and expanded Casey’s reach across the South. That flexibility allows us to pursue the best opportunities as market conditions evolve.”

Enhancing Operational Efficiency: Casey's is investing in technology and data-driven tools to improve how its team members prepare food, serve guests, and run stores efficiently. These investments help improve forecasting, strengthen the guest experience, and support profitable growth as the company expands. "We're intentional about how we invest in technology, focusing on solutions that improve the experience for our guests while enabling our teams to operate more efficiently," said Williams. "Whether it's using AI to help improve forecasting and inventory planning, redesigning kitchens to help team members prepare more food with less friction, or enhancing digital tools like our app and Casey's Rewards, we're investing in practical innovations that improve efficiency, strengthen guest experience, and support long-term growth."

Materials from the presentation are available on the company’s website here: https://investor.caseys.com/events-presentations

About Casey's

Casey’s is a Fortune 500 company (Nasdaq: CASY) operating over 2,900 convenience stores. Founded more than 50 years ago, the company has grown to become the third-largest convenience store retailer and the fifth-largest pizza chain in the United States. Casey’s provides freshly prepared foods, quality fuel and friendly service at its locations. Guests can enjoy pizza, donuts, other assorted bakery items, and a wide selection of beverages and snacks. Learn more and order online at www.caseys.com, or in the mobile app.

Forward-Looking Statements

This release contains statements that may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including those related to expectations for future periods, possible or assumed future results of operations, financial conditions, liquidity and related sources or needs, business and/or integration strategies, plans and synergies, supply chain, growth opportunities and performance at our stores. There are a number of known and unknown risks, uncertainties and other factors that may cause our actual results to differ materially from any results expressed or implied by these forward-looking statements, including but not limited to the execution of our strategic plan, the integration and financial performance of acquired stores, wholesale fuel, inventory and ingredient costs, distribution challenges and disruptions, the impact and duration of the conflicts in oil producing regions or other geopolitical disruptions, as well as other risks, uncertainties and factors, which are described in the company’s most recent annual report on Form 10-K and quarterly reports on Form 10-Q, as filed with the Securities and Exchange Commission and available on our website. Any forward-looking statements contained in this release represent our current views as of the date of this release with respect to future events, and Casey’s disclaims any intention or obligation to update or revise any forward-looking statements in the release whether as a result of new information, future events or otherwise.

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SummarySharkNinja is downgraded to Hold after a ~40% rally over the past month, as valuation now reflects its strong fundamentals and growth prospects.SN continues double-digit sales and earnings growth for a 12th consecutive quarter, robust international expansion, and brand momentum, even as peers struggle.Guidance was raised across all key metrics, citing tariff relief, cost mitigation, and aggressive category and geographic expansion.Despite a healthy balance sheet and recent buyback program, macro risks and consumer uncertainty warrant caution at current valuation levels. Thai Liang Lim/iStock via Getty Images

Introduction The last time I covered SharkNinja (SN), I highlighted the company’s excellent streak of consecutive double-digit top- and bottom-line growth and improving free cash flow, outperforming the overall weak consumer environment and

3.12K Followers

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 (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.

Key Takeaways SOUN's EBITDA improvement depends on scale as Q1 revenues rose 52% despite negative EBITDA.The LivePerson deal could expand SoundHound's enterprise reach and lift the 2027 revenue opportunity.OASYS, cloud optimization and restructuring actions are expected to support future EBITDA expansion. SoundHound AI's (SOUN - Free Report) path to EBITDA improvement increasingly depends on one factor — scale. The company delivered first-quarter 2026 revenues of $44.2 million, up 52% year over year, while reaffirming full-year revenue guidance of $225-$260 million. Although adjusted EBITDA remained negative at $26.7 million, management believes growing revenue, cost synergies and a more efficient AI platform can narrow losses over time.

A major catalyst is SoundHound's planned acquisition of LivePerson. The transaction is expected to significantly expand the company's enterprise footprint, adding hundreds of long-standing customers and strengthening its presence across banking, telecommunications, healthcare and retail. Management projects a 2027 revenue opportunity of at least $350-$400 million after the deal closes, while cross-selling voice AI and digital messaging solutions could eventually support a $500 million revenue opportunity from the combined customer base.

Operational efficiency is another key driver. SoundHound is consolidating infrastructure, optimizing cloud spending, replacing third-party technologies with proprietary models and extracting cost synergies from prior acquisitions. Management noted that several restructuring actions taken in the first quarter should begin delivering recurring cost benefits over the next two quarters. The newly launched OASYS platform, powered primarily by SoundHound's in-house AI models, is also expected to reduce inference costs as customer traffic scales, supporting future EBITDA expansion.

The company still faces near-term profitability challenges. Investments in proprietary foundation models and continued integration expenses will likely keep margins under pressure in 2026. However, with $216 million in cash, no debt and multiple cost-saving initiatives underway, SoundHound appears well-positioned to leverage higher revenues into improved EBITDA over the longer term, provided execution on acquisitions and platform integration remains strong.

How Do Nuance and NICE Compare With SoundHound?Two companies worth watching alongside SoundHound are Microsoft's (MSFT - Free Report) Nuance Communications and NICE Ltd. (NICE - Free Report) .

Nuance Communications has built a dominant position in enterprise conversational AI, particularly in healthcare and customer engagement, benefiting from Microsoft's cloud ecosystem and broad enterprise reach. Nuance Communications focuses on large-scale deployments, but its deep integration within Microsoft makes rapid independent innovation less visible than SoundHound's dedicated AI platform.

Meanwhile, NICE continues to strengthen its AI-powered customer experience platform through automation and analytics, helping enterprises improve contact center efficiency and reduce operating costs. NICE is increasingly embedding generative AI into its CX solutions to enhance productivity and customer service. While Nuance Communications and NICE possess greater enterprise scale today, SoundHound aims to close the gap by expanding through acquisitions, cross-selling opportunities and its proprietary OASYS platform, which management believes can lower AI inference costs and support stronger EBITDA improvement as revenue scales.

SOUN’s Price Performance, Valuation & EstimatesSoundHound shares have lost 35.4% year to date (YTD), outperforming the industry, as shown below:

SOUN’s YTD Price Performance

Image Source: Zacks Investment Research

From a valuation standpoint, SOUN trades at a forward price-to-sales (P/S) multiple of 11.03, below the industry’s average of 11.23.

SOUN’s P/S Ratio (Forward 12-Month) vs. Industry

Image Source: Zacks Investment Research

Over the past 60 days, the Zacks Consensus Estimate for SoundHound’s 2026 loss per share has widened to 18 cents, as shown below. The expected loss also remains wider than the previous year’s loss of 13 cents.

EPS Trend of SOUN Stock

Image Source: Zacks Investment Research

SOUN currently has a Zacks Rank #4 (Sell).

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

Key Takeaways ECPG has surged 56.2% in six months, but still trades at just 6.4X forward 12-month earnings.Encore Capital's first-quarter 2026 EPS beat estimates by 18.4%, while revenues rose 21%.ECPG's low multiple supports value appeal, but debt, legal costs and Cabot weakness remain risks. Encore Capital Group (ECPG - Free Report) is no longer a turnaround story waiting for proof. Shares have climbed 56.2% in the past six months and 120.4% over the trailing 12-month period.

The valuation question is now harder. Investors must decide whether low earnings multiples and higher profit forecasts still leave room for upside, or whether leverage and cost risks should cap the rerating.

Why ECPG Still Looks Cheap on EarningsECPG trades at 6.4X forward 12-month earnings, while its current fiscal-year price-to-earnings ratio is 6.6. That remains below 7.88X for the Zacks sub-industry, 16.29X for the Zacks Finance sector and 21.32X for the S&P 500 index.

The stock is also trading at its five-year median forward multiple of 6.4X, despite a stronger operating setup than it had during weaker collection periods. Its five-year range of 4.14X to 12.84X leaves room for a higher multiple if earnings quality continues to improve.

Image Source: Zacks Investment Research

PRA Group, Inc. (PRAA - Free Report) is the closest public comparison because it also acquires and collects nonperforming loan portfolios. That makes portfolio supply, funding access and recovery efficiency central issues for both companies. On the other hand, FirstCash Holdings, Inc. (FCFS - Free Report) offers a different way to view consumer-finance exposure. Its pawn-focused model depends less on charged-off receivable purchases, making it a useful contrast to ECPG’s debt-purchasing cycle.

At present, PRA Group and FirstCash Holdings are trading at a premium to ECPG.

How Encore Capital Earnings Are Moving HigherEncore’s latest quarter helped reset the earnings base. First-quarter 2026 earnings of $3.86 per share beat the Zacks Consensus Estimate by 18.4%, while revenues of $475 million rose 21% year over year.

The operating support was clear. Global collections increased 19% to a record $718.4 million, and the U.S. MCM business generated record collections of $556 million, up 23% from the prior-year quarter.

Management raised its 2026 earnings outlook to $13 per share from $12, implying 19% year-over-year growth. The consensus estimate shows earnings rising from $10.91 in 2025 to $13.01 in 2026 and $13.86 in 2027.

Image Source: Zacks Investment Research

What the ECPG Price Target ImpliesThe $99 price target reflects 7.38X forward earnings. That is not an aggressive multiple relative to the broader market, but it does imply some rerating from the current 6.40X forward 12-month level.

A modest multiple expansion could be supported if collection outperformance keeps flowing into results. Collections exceeded expectations in the first quarter, and positive changes in expected future recoveries suggest estimated remaining collection curves are beginning to move higher.

As those curves adjust, management expects more of the benefit to shift from cash overperformance into portfolio revenues. Stronger reported portfolio revenue can make earnings visibility more durable.

Why Encore Capital Is Not a Simple Value BetECPG’s low multiple comes with balance-sheet risk. Borrowings totaled $4.03 billion at the end of the first quarter, and the company depends on debt funding to purchase receivable portfolios.

Interest expense and other income are projected to total about $300 million in 2026. If borrowing costs remain elevated or portfolio returns normalize, the earnings benefit from higher collections could face pressure.

Legal collection costs are another margin risk. Rising legal activity can support recoveries, but it can also create fixed and semi-variable cost pressure if collections growth slows.

The business mix adds a limitation. The U.S. business is driving most of the momentum, while Cabot in Europe continues to face subdued lending, low delinquencies and strong competition.

How ECPG’s Scores Shape the Investment CallThe bottom line is that ECPG still looks inexpensive, but not risk-free. The earnings reset, low forward multiple and $99 price target support the undervaluation argument, while leverage, legal costs and geographic concentration keep the case selective.

ECPG currently sports a Zacks Rank #1 (Strong Buy), which supports the view that estimate trends remain favorable in the near term. Its Value Score of B also strengthens the bargain case for investors focused on valuation. You can see the complete list of today’s Zacks #1 Rank stocks here.

The rest of the style profile is less supportive. ECPG has a VGM Score of C, Growth Score of D and Momentum Score of F. That mix suggests the stock is better viewed as a selective value opportunity backed by earnings revisions, rather than an all-clear momentum play after a major rally.

Sandisk (SNDK 2.68%), one of the world's largest flash memory chipmakers, was once considered a cyclical stock in a commoditized market. But since its spin-off from Western Digital (WDC 5.18%) last February, its stock has surged more than 5,200%.

In 2026 alone, Sandisk's stock has rallied more than 720%. Should investors chase that rally, or should they wait for its stock to cool off? Let's review its growth rates and valuations to decide.

Image source: Getty Images.

Why did Sandisk's stock soar? When Western Digital spun off Sandisk, it was still a slow-growth maker of NAND flash memory chips, which are used in solid-state drives (SSDs), USB drives, and SD cards. However, the artificial intelligence (AI) market's explosive growth forced data centers to upgrade their servers with faster SSDs.

That buying frenzy triggered a global NAND memory chip shortage and drove up Sandisk's chip prices, boosting its revenue and margins. Sandisk further capitalized on the AI boom by launching the world's first 256TB enterprise SSD for AI data lakes. Those ultra-dense drives enabled hyperscalers to consolidate dozens of hardware server racks into a single unit.

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Without Western Digital, which was struggling to sell its older platter-based hard-disk drives (HDDs), Sandisk became a "pure play" on the NAND market. In fiscal 2025 (which ended last July), Sandisk's revenue grew 10%, its adjusted gross margin expanded from 14.8% to 30.3%, and it returned to profitability on a non-GAAP (generally accepted accounting principles) basis.

But in fiscal 2026, analysts expect Sandisk's revenue and non-GAAP EPS to surge 167% and 2,089%, respectively, as those AI tailwinds accelerate. In fiscal 2027, they expect the company's revenue and non-GAAP EPS to rise 122% and 180%, respectively.

That growth should be driven by its increased sales of 256TB SSDs to hyperscalers, the development of even denser chips, and multi-year cloud contracts that will generate predictable recurring revenues and insulate it from future memory market crashes.

But should you buy Sandisk's stock today? At $1,920 per share, Sandisk trades at just 10 times and 11 times next year's non-GAAP and GAAP EPS estimates, respectively. So even though Sandisk's stock has skyrocketed since its spin-off from Western Digital, it's still being valued as a slow-growth maker of legacy memory chips rather than a high-growth AI chipmaker. If that rerating occurs, Sandisk's stock could easily double or triple from its current levels -- so it still looks like a worthwhile investment.

Cerebras Systems (NASDAQ:CBRS) shares fell 14% to about $194 on Tuesday after the artificial intelligence chipmaker reported better-than-expected first quarter results and raised its full-year revenue outlook, but forecast a sharp decline in gross margins for the current quarter.

The company, which completed its initial public offering earlier this year, reported first-quarter GAAP revenue of $193.4 million and core revenue of $191.3 million, exceeding Wall Street expectations of about $181 million. Core revenue increased 92% from a year earlier.

Cerebras posted a non-GAAP net loss of $0.04 per share, narrower than analysts' expectations for a loss of $0.16 per share.

For the second quarter, Cerebras projected revenue of approximately $194 million, ahead of analysts' estimates of $174.3 million. The company also raised its full-year 2026 revenue forecast to a range of $855 million to $865 million, compared with consensus expectations of about $828 million.

However, investors focused on the company's profitability outlook. Cerebras said second-quarter gross margin is expected to fall to between 36% and 38%, down from 47% in the first quarter and a GAAP gross margin of 45% reported for the period.

During the quarter, Cerebras announced a multi-year agreement with OpenAI valued at more than $20 billion, under which OpenAI plans to deploy 750 megawatts of the company's inference computing capacity over several years. Cerebras also launched a partnership with Amazon Web Services aimed at bringing its inference technology to AWS customers through a disaggregated inference strategy.

Andrew Feldman, Cerebras CEO, said demand for faster AI infrastructure is growing as artificial intelligence applications become more widely adopted. “The growing importance of AI in our economy requires AI infrastructure that can power the most advanced applications at unprecedented speed. This is the Cerebras mission,” Feldman said.

Wedbush analysts maintained an ‘Outperform’ rating on Cerebras and raised their price target to $280 from $270 following the results. The analysts wrote that the company's inaugural earnings report contained "no particular surprises" and validated their expectation that management would provide achievable guidance.

Wedbush noted that hardware sales exceeded its expectations and that stronger pricing for Cerebras' cloud services reflected robust demand. While gross margins are expected to decline as OpenAI-related revenue ramps, the analysts wrote that the drop appears less severe than they had previously modeled, potentially creating upside through 2026.

The firm also pointed to higher operating expenses, which it believes are likely tied to additional research and development spending and could support future product launches and customer programs.

Wedbush wrote that it remains constructive on Cerebras, citing potential catalysts including new products such as the WSE-4 processor, additional data center capacity and sustained demand for AI infrastructure.

SpaceX (SPCX 0.05%) has taken investors on a wild ride since its June 12 IPO. The aerospace and AI company went public at $135 per share, started trading at $150, and soared to a record high of $225.64 on June 16. But as of this writing, it trades at about $160.

SpaceX's stock pulled back because its valuation had gotten overheated. At its peak, its market cap briefly hit $2.66 trillion, or 142 times its 2025 revenue of $18.7 billion. It also only floated about 4% of its shares in its IPO, and that limited supply amplified its gains.

Image source: Getty Images.

Yet after that pullback, SpaceX is still worth $2.06 trillion, or 110 times last year's sales. That's a bubbly valuation for a company that grew its revenue by 33% in 2025. While market hype and rosy expectations could prevent its stock from dipping below its IPO price, it could face a reckoning once its lockup periods start to expire in about a month.

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When will SpaceX's lockup periods expire? When a company goes public, its insiders, early investors, and institutional investors are barred from selling their shares immediately. Instead, they generally need to wait until the traditional 180-day "lockup period" ends before they can sell those shares.

However, that's not a firm rule -- so companies can structure their lockup periods in different ways. Instead of waiting for 180 days, SpaceX will allow its insiders and early investors to sell their shares in several waves. The first wave will occur on the second trading day after its second-quarter earnings report in late July or early August.

On that day, SpaceX will unlock 20% of its shares held by its employees and early pre-IPO holders. If its stock closed at or above $175.50 per share for at least five of the ten consecutive days before the earnings release, it will unlock another 10% of its shares. It will continue to unlock 7% of its shares on Aug. 20, Sept. 9, Sept. 24, Oct. 9, and Oct. 24.

On the second trading day after its third-quarter earnings report in late October or early November, it will unlock 28% of its shares. On Dec. 8, it will unlock all of its remaining shares.

Why should investors watch these dates? SpaceX's stock could decline on those lockup dates as its insiders and early investors cash out. That selling could make it much easier and cheaper to short the stock. Therefore, if you believe SpaceX has a bright future but don't want to pay the wrong price for the right stock, those lockup expirations could create some good buying opportunities.

Shares of Amazon.com NASDAQ: AMZN started this week on the back foot, trading down around $230, their lowest level since early April. The stock has been going through a tough patch and is now down more than 16% from the all-time high it hit last month.

Amazon.com Today

$240.00 +5.89 (+2.51%)

As of 12:53 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$196.00▼

$278.56P/E Ratio28.75

Price Target$312.78

What makes the current pullback particularly worrying is the divergence from the rest of the market and the broader tech sector, with much of which has been holding on to most of its recent gains. When a stock starts trading out of sync with its peers, it usually tells you something specific is weighing on it.

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In Amazon's case, that something has just become a lot clearer. It was reported last week that the Federal Trade Commission (FTC) has drafted a potential complaint against the company, alleging it misled advertisers through hidden ad pricing practices, and the penalty could run into the billions.

This isn’t the first time that Amazon has run afoul of the FTC, and if recent history is anything to go by, investors are right to be worried. The question is how much?

What the FTC Is Actually Looking AtAt the heart of the investigation is whether Amazon properly disclosed the terms and pricing of its advertising auctions, particularly a feature called "reserve pricing" for certain search ads. In simple terms, that's the minimum price an advertiser has to accept before they're able to buy an ad. The argument is that Amazon didn't make these mechanics fully clear, leaving advertisers paying more than they otherwise might have.

It's worth noting that this isn't an entirely new line of inquiry. The FTC's consumer protection unit has been looking into whether both Amazon and Alphabet NASDAQ: GOOGL misled advertisers placing ads on their respective platforms for some time now. What's changed is that the investigation into Amazon has now reportedly progressed to the point where a formal complaint has been drafted, which is a meaningful step up the regulatory ladder, and this is clearly spooking investors.

Amazon Has Been Here BeforeWhat makes this story particularly relevant for Amazon’s investors is the recent history. Just last September, the FTC secured a historic $2.5 billion settlement against Amazon over allegations that it had enrolled millions of consumers in its Prime program without their consent and made it deliberately difficult for them to cancel. A settlement of that scale makes it very clear just what the FTC thinks it can extract when it sets its sights on Amazon.

For the latest investigation, it’s a useful reference point for thinking about the worst-case scenario. If the FTC was able to secure $2.5 billion in penalties and refunds for the Prime enrollment issue, the potential downside from a misleading-advertisers complaint could be similar, or even larger, given the size and complexity of Amazon's advertising business.

Even for a company of Amazon's scale, that would be a significant amount of money, and it’d come at a time when Amazon’s outgoings are already under the microscope.

A Worrying Near-Term SetupFrom that perspective, this update from the FTC couldn't really have come at a worse moment for Amazon's stock. As we've covered recently, the company has been grappling with a free cash flow squeeze from its enormous AI capital expenditure commitments, a high-profile Blue Origin rocket explosion that set back its satellite ambitions, and a broader cooling in sentiment across mega-cap tech. Adding regulatory uncertainty to that pile is the kind of thing that can keep a stock under pressure for longer than the underlying business deserves.

There’s also the risk that while an eventual settlement could come this summer, it could also just as easily turn into a drawn-out legal battle that dominates the headlines for many quarters to come. Neither of those is ideal for shareholders who have been waiting for the stock to find its footing.

The Long-Term Bull Case Hasn't ChangedOverall MarketRank™99th Percentile

Analyst RatingModerate Buy

Upside/Downside29.3% Upside

Short Interest LevelHealthy

Dividend StrengthWeak

News Sentiment0.99 Insider TradingSelling Shares

Proj. Earnings Growth29.96%

See Full Analysis

Still, for those willing to look beyond the next few months, the long-term case for Amazon remains as strong as ever. AWS continues to grow at a remarkable pace and is increasingly central to the AI infrastructure buildout. The advertising business itself, the very thing now under scrutiny, is one of the fastest-growing high-margin revenue streams in the company. The deepening Anthropic relationship and the wave of analyst price targets sitting comfortably above $300 all speak to a long-term picture that an FTC complaint, even a multi-billion-dollar one, doesn't materially change.

The current weakness is uncomfortable, no question, and the near term could get worse before it gets better. But Amazon has a long history of absorbing regulatory blows and compounding value over time. For those willing to pinch their noses in the near term, this weakness could be a gift in the long term.

Should You Invest $1,000 in Amazon.com Right Now?Before you consider Amazon.com, you'll want to hear this.

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Meta and Microsoft are leading the pack of tech giants that are shoveling money into artificial intelligence data-center leases – each committing tens of billions of dollars in their most recent quarters, according to a report.

The new agreements helped lift total future data-center lease commitments among the largest cloud-computing companies to more than $850 billion, Bloomberg reported.

The obligations have continued to rise over the past year as tech firms build out server farms to power an expected boom in AI use in coming years.

Tech giants are ramping up spending on power hungry server farms to power AI. Bloomberg via Getty Images

Mark Zuckerberg, chief executive officer of Meta Platforms Inc., seen wearing Orion augmented reality (AR) glasses. Bloomberg via Getty Images The lease commitments will largely be paid out over the next two decades, meaning spending on data center necessities like semiconductors and energy show no signs of slowing in the face backlash from some parts of the country.

Meta accounted for the biggest increase in data-center investment.

As of March 31, it had reportedly accumulated $182.9 billion in future lease obligations after adding $79 billion during the quarter – a 76% spike from the prior period.

Meta CEO Mark Zuckerberg has said he intends to invest hundreds of billions of dollars in AI infrastructure before the decade ends.

Microsoft’s future lease commitments rose by more than $41 billion, reaching $196.6 billion, according to Bloomberg. The company has been constrained by limited data-center capacity after scaling back its leasing through much of 2025.

Earlier this week, Microsoft unveiled a massive data center development in west Texas in partnership with Chevron.

Microsoft Chairman and CEO Satya Nadella speaks during a keynote address. Getty Images Amazon also ramped up its future lease obligations, reportedly committing $10 billion during the quarter, less than half the amount added in the prior quarter.   

As of March 31, Meta had accumulated $182.9 billion in future lease obligations after adding $79 billion during the quarter Askar – stock.adobe.com Oracle was one of the few exceptions to the trend. Its future lease commitments edged lower from the previous quarter.

Even so, the company remains the largest holder of future spending commitments after previously securing many of the large sites needed to support a major contract with OpenAI.

The obligations, which are separate from current leases, typically stay off balance sheets until payments begin. Although they are mainly associated with data centers, they may also cover properties such as office buildings and warehouses. Certain agreements include provisions that can relieve companies of future obligations under specified circumstances.

The Post has sought comment from Amazon, Meta and Microsoft.

NIKE NKE shares are trading lower despite announcing that its Q4 results will include an unexpected tariff-refund benefit. However, the company clarified that, excluding this one-time benefit, Q4 results are expected to align with previous guidance rather than exceed it. Additionally, NIKE is set for a CFO transition, with David Denton stepping in on August 17, while current CFO Matthew Friend will assist until September 4. This transition adds another layer of complexity as investors weigh the short-term earnings benefit against ongoing leadership changes during a prolonged turnaround period.

Guidance Quality: NIKE's previous Q4 outlook estimated revenue between $10.65 billion and $10.87 billion, reflecting a decline of 2% to 4%, with gross margin expected to decrease by 25 to 75 basis points year-over-year. The new update does not alter this framework but adds an unquantified tariff-refund benefit. Underlying Sales Read: The prior Q4 revenue guidance included a 2-point FX benefit, indicating that the constant-currency demand remains weaker than the reported decline suggests. Turnaround Shape: Management is focusing on achieving milestones, aiming to complete "Win Now" actions by the end of calendar 2026, with gross margin expansion expected to begin in Q2 2027 and cost-reset benefits to accumulate through fiscal 2028. What is Working: North America is a bright spot, with Q3 revenue increasing by 3% and wholesale up 11%, although recovery remains uneven as Direct sales fell by 5% and Digital declined by 7%. What is Still Weak: Digital remains overly promotional globally, sportswear sales continue to struggle, Converse faced a 35% revenue decline in Q3, and Greater China is expected to remain under pressure due to reduced sell-in and marketplace cleanup. Leadership Transition: The CFO change is not linked to any disputes, and Denton brings valuable experience from CVS Health CVS and Lowe's LOW , providing CEO Elliott Hill with a finance partner skilled in cost discipline and capital allocation.The recent update from NIKE NKE offers a clearer Q4 outlook but does not address larger concerns regarding demand quality, promotional activities, and the timeline for a sustainable margin recovery. The upcoming report on June 30 will be crucial in assessing the underlying business quality, including full-price selling, inventory management, digital promotions, and whether improvements in North America's wholesale sector are translating into a healthier direct business. The CFO transition is significant, as it introduces a new finance partner during this critical reset phase, but Denton's impact will likely unfold over several quarters. A key test will be NIKE's ability to transform its milestone-based turnaround plan into a credible earnings strategy for FY27 and FY28, making the fall Investor Day a pivotal moment for establishing a more sustainable margin recovery framework.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

I keep buying NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) because every quarter the company reports, the math behind my thesis gets stronger. That is the whole confession. I have been adding on every pullback this year, including the 4.13% drop on June 23 that pushed shares back to $200.04, and I plan to keep doing it through the back half of 2026. Here is why.

The core thesis in human terms Jensen Huang calls what is happening right now “the largest infrastructure expansion in human history.” I think he is right, and I think NVIDIA sits at the toll booth. Every hyperscaler, sovereign, neocloud, and enterprise that wants to train or serve a frontier model has to come through this company’s stack. That is a structural position I want to own for the next decade.

Three reasons the thesis holds Reason one: the growth curve is accelerating. Revenue growth has gone +55.6% in Q2, +62.5% in Q3, +73.2% in Q4, and +85.2% in Q1 FY27. Data Center revenue hit $75.25 billion last quarter, up 92% year over year, with networking inside that segment growing 199%.

Management guided Q2 FY27 to $91 billion, and they have beaten the prior two guides by billions. Total supply commitments now sit at $119 billion. That is locked-in demand visibility.

Reason two: margins and cash returns are doing the work. Non-GAAP gross margin printed at 75%. Free cash flow last quarter was $48.55 billion, up 85.41%. The board raised the dividend from $0.01 to $0.25 per share and authorized an additional $80 billion buyback on top of $38.5 billion still available.

Roughly $20 billion came back to shareholders in a single quarter. That is a capital return program I want compounding alongside my position.

Reason three: the moat keeps widening. The customer list reads like the entire AI economy: Meta committing to millions of Blackwell and Rubin GPUs, OpenAI on 10 gigawatts, Anthropic on 1 gigawatt, CoreWeave on 5+ gigawatts by 2030.

Four straight EPS beats, with last quarter at $1.87 against a $1.7738 consensus. And the valuation looks reasonable for this growth rate: forward P/E of 24, PEG of 0.642, against a market cap near $5.05 trillion.

The real risk China. NVIDIA shipped zero H20 compute products to China last quarter, against $4.6 billion in the year-ago quarter. The Q2 FY27 guide assumes no Data Center compute revenue from China at all. That is a real hole in the business that export restrictions could keep open indefinitely.

What keeps me buying anyway: the company guided to $91 billion with that revenue already zeroed out, and growth is still accelerating. The thesis holds even with China taken to zero.

What keeps the buy button active Wall Street consensus target sits at $298.93 from 58 buys against 1 sell. Forward P/E of 24. A dividend that just jumped 25x. A buyback authorization with no expiration. An installed base running every cloud and every frontier model.

I own NVIDIA because the AI factory buildout is a multi-year story and the company collecting the toll is also returning cash and compounding margins while it grows. I will keep buying for as long as the receipts say I should.

Key Takeaways SBUX said delivery has grown more than 30% YTD across its U.S. company-operated business.SBUX reported 7.1% U.S. comparable sales growth in Q2 FY26, driven by transaction growth of more than 4%.SBUX is expanding delivery alongside cafes, drive-thrus and mobile pickup to broaden customer access. Starbucks Corporation (SBUX - Free Report) is seeing delivery become a more visible comp-growth lever as the company broadens customer access across its U.S. store base. During the second quarter of fiscal 2026, delivery contributed to both comp ticket and transaction growth, underscoring its role as a measurable access-point gain within the Back to Starbucks recovery.

The momentum follows Starbucks’ expansion of delivery access across its U.S. company-operated portfolio last fiscal year. The company stated that delivery has proven to be a largely incremental revenue stream, growing more than 30% year to date (YTD) across its U.S. company-operated business. The delivery growth strengthens Starbucks’ access-point strategy, adding an incremental demand channel alongside cafés, drive-thrus and mobile pickup.

The broader U.S. comp recovery provides a stronger base for delivery to scale. In the fiscal second quarter, U.S. comparable sales rose 7.1%, led by transaction growth of more than 4%. Starbucks also reported transaction growth across all dayparts in its U.S. company-operated business, with mornings roughly back to fiscal 2022 levels. This improving traffic backdrop gives the company a stronger foundation to expand delivery as part of its broader access-point strategy.

The opportunity is tied to execution. As Starbucks improves staffing, scheduling and order sequencing, it is trying to support higher volumes across cafés, drive-thrus, mobile order pickup and delivery while keeping service times on target. Customer service times remained on target despite higher transaction volumes, while upcoming scheduled ordering is expected to bring more predictability to mobile order flow.

Delivery’s role in Starbucks’ U.S. growth story will likely depend on whether it can keep the channel incremental while preserving service execution. If the company sustains delivery momentum while maintaining operating discipline, the channel could become a more durable U.S. comp lever within the broader Back to Starbucks strategy.

How Starbucks Stacks Up to CompetitorsDutch Bros Inc. (BROS - Free Report) provides a relevant benchmark because it is also expanding beverage occasions through digital access, rewards engagement and menu innovation. Order ahead reached approximately 15% of the total transaction mix in the first quarter of 2026, while Dutch Rewards accounted for 74% of transactions. BROS is also using food attachment and energy innovation, including Myst Energy Refreshers, to support frequency and transaction growth.

McDonald’s Corporation (MCD - Free Report) offers a broader scale comparison, as it is using value, marketing and beverage innovation to drive traffic across dayparts. In the first quarter, U.S. comparable sales rose 3.9%, supported by value platforms, meal deals and menu activity. MCD also expanded its McCafe beverage platform with refreshers and crafted sodas, with additional flavors and Red Bull-infused energy drinks planned during the year.

Against this backdrop, Starbucks’ positioning depends on whether delivery can remain incremental while service execution holds. BROS is leaning on order ahead, rewards, food and customized energy to build frequency, while MCD is using value, scale and beverage innovation to reinforce traffic. Starbucks’ differentiation lies in using delivery as a measurable access-point lever, with the channel already contributing to ticket and transaction growth and growing more than 30% year to date across U.S. company-operated stores.

SBUX’s Price Performance, Valuation & EstimatesShares of Starbucks have gained 10.4% in the past year against the industry’s 8.9% decline.

SBUX’s One-Year Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, SBUX trades at a forward price-to-sales (P/S) multiple of 2.90, below the industry’s average of 3.24.

SBUX’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for SBUX’s fiscal 2026 earnings per share (EPS) implies a year-over-year increase of 12.7%. The EPS estimates for fiscal 2026 have increased in the past 60 days.

EPS Trend of SBUX Stock
Image Source: Zacks Investment Research

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

© LuFeTa / Shutterstock.com

I keep hitting the buy button on Adobe (NASDAQ:ADBE | ADBE Price Prediction) because the market has handed me a chance to own a global software franchise at a multiple normally reserved for a dying utility. The stock is down 44.31% year to date and sits at $194.90, yet the underlying business just put up the strongest quarter in its history. That gap between price and performance is my entire thesis.

The Business Wall Street Says Is Cooked The bear story is that generative AI startups will eat Adobe’s lunch and that 4.2% inflation plus consumer debt will pinch enterprise software budgets. Yet in the quarter Adobe reported on June 11, 2026, revenue hit a record $6.62 billion, up 13% year over year. Non-GAAP diluted EPS came in at $5.96, the fifth consecutive beat. Total Adobe ARR exited the quarter at $27.10 billion. AI-first ARR, the very line item the bears say cannot exist for Adobe, tripled year over year and crossed $500 million. CEO Shantanu Narayen said the company is “raising our full-year fiscal 2026 revenue and non-GAAP EPS targets on the strength of that performance.” That commentary signals a franchise that is accelerating.

Three Reasons I Keep Adding Valuation. Adobe trades at a forward earnings multiple of 8x with a PEG of 0.534, a trailing P/E near 11x, and an EV/EBITDA of 7.8. That is being priced like a no-growth industrial. Yet management guided full year FY2026 revenue to $26.50 billion to $26.60 billion and non-GAAP EPS to $24.35 to $24.45, against a roughly 45.0% non-GAAP operating margin. Software companies with that profile rarely come this cheap.

Cash engine. Q2 operating cash flow was $2.165 billion against capex of just $58 million, on top of a record $10.030 billion in FY2025 operating cash flow. Management repurchased roughly 8.5 million shares for $2.111 billion in the quarter, retiring stock at depressed prices. Return on equity sits at 62.9%. That is the definition of a cash compounder.

Moat monetizing AI. Subscription revenue reached $6.39 billion, up 14% year over year. Acrobat surpassed 850 million monthly active users, Firefly ARR is approaching $300 million with 50% quarter-over-quarter growth, and the AI-first ARR in Customer Experience Orchestration grew 4x year over year. As Narayen put it, “creativity is an area where Adobe is uniquely qualified.” The retail crowd on Reddit captured it more bluntly: “Adobe already put it behind a paywall and called it dinner.”

The Risk I Will Not Wave Away The real worry is leadership transition layered onto a brutal stretch for the stock. CFO Dan Durn departed on June 15, 2026, with an interim CFO in place. The quarter included a $70 million goodwill impairment and a $30 million litigation accrual, and Form 4 filings show executives, including the CEO, sold common stock at prices between $206.36 and $248.02 in April and June rather than buying the dip. What does not change is that the stock now trades below where those insiders sold, the cash machine is unbroken, and the recurring revenue base keeps compounding regardless of who signs the 10-Q.

Why The Buy Button Stays Active Wall Street is paying a stagnant-business multiple for a franchise generating 35.3% operating margins and tripling its AI revenue line. Analysts carry a consensus target of $282.27 while the price sits at $194.90. I am buying Adobe because the cash flows are real, the buyback is shrinking my denominator, and the AI thesis is showing up in the ARR line every quarter. When a global software monopoly goes on sale at 8x forward earnings, I keep clicking buy.

FedEx Corp. (NYSE:FDX) reported better-than-expected earnings for the fourth quarter of fiscal 2026 after the market closed on Tuesday.

FedEx delivered fourth-quarter revenue of $25 billion, beating analyst estimates of $24.04 billion, according to Benzinga Pro. The company posted adjusted earnings of $6.31 per share, beating estimates of $5.96 per share.

"Our profitable growth strategy is working. We are building momentum across our global industrial network, driving structural improvements and winning in high-value growth markets," said Raj Subramaniam, president and CEO of FedEx.

However, the company said operating margin in the Federal Express segment shrank to 7.7% from 8.4% a year ago.

FedEx expects revenue growth of 11% year-over-year for calendar year 2026. The company also guided for calendar year 2026 adjusted earnings in the range of $16.90 to $18.10 per share.

FedEx shares fell 0.7% to trade at $314.57 on Wednesday.

These analysts made changes to their price targets on FedEx following earnings announcement.

UBS analyst Thomas Wadewitz maintained the stock with a Buy and lowered the price target from $445 to $350. Stifel analyst J. Bruce Chan maintained the stock with a Buy and lowered the price target from $442 to $326. Considering buying FDX stock? Here’s what analysts think:

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Key Takeaways IBM partnered with OpenAI to embed AI into cybersecurity operations and strengthen threat defense.IBM's AI security tools identify high-risk code areas and help reduce false positives in vulnerabilities.IBM's $5B Project Lightwell aims to improve security across the open-source software ecosystem. International Business Machines Corporation (IBM - Free Report) recently announced that it has formed a strategic collaboration with OpenAI. The collaboration focuses on taking AI capabilities beyond just improving productivity and efficiency and integrating AI directly into an organization’s cybersecurity operations.

As enterprise accelerate their digital transformation initiatives, they are getting exposed to increasingly sophisticated cyberthreats. The attackers are using AI to generate phishing campaigns and discover vulnerabilities. Legacy security mechanisms often fall short against this growing sophistication of cyberthreats.

IBM is taking several initiatives to address these issues. IBM’s newly introduced AI-powered application security service reviews application code and architecture to identify potential weaknesses. Large organizations often have millions of lines of code. IBM’s AI solution can help in finding out and determining the high-risk areas. OpenAI’s cyber capabilities can help determine whether a vulnerability is actually exploitable or not. The capability of validating vulnerabilities eliminates one of the biggest issues in cybersecurity, which is false positives.

The collaboration with OpenAI will act as a catalyst for IBM’s project Lightwell. The project aims to improve security across the open-source software ecosystem. IBM has committed $5 billion to this project. Such investment in innovation and strategic collaboration will likely boost IBM’s commercial prospects in the growing cybersecurity space.

Other Tech Firms Expanding into AI-Integrated Security DomainCisco Systems, Inc. (CSCO - Free Report) is infusing AI across Security and Collaboration platforms and building agent-based workflows to reduce manual work for customers. Its comprehensive portfolio includes products like Cisco AI Defense that focus on securing an enterprise’s AI transformation. Cisco Secure Access protects against threats from third-party and shadow AI apps and helps in secure Gen AI use. Cisco is also using Splunk’s portfolio to expand Threat Intelligence, Detection and Response capabilities and to connect observability data with security analytics. Cisco acquired Splunk in 2024.

CrowdStrike, Inc. (CRWD - Free Report) continues to leverage AI and machine learning to drive superior security outcomes and operational efficiency. The company is positioning Falcon as an AI security infrastructure and highlighted being selected as a launch partner in both Anthropic’s Project Glasswing and OpenAI’s Trusted Access for Cyber programs. CrowdStrike launched the Charlotte AI AgentWorks ecosystem, a no-code development platform created with AWS, NVIDIA and OpenAI to build and scale custom security agents on Falcon. CrowdStrike also expanded GovCloud offerings to accelerate public sector AI adoption.

IBM’s Price Performance, Valuation & EstimatesIBM shares have declined 9% over the past year against the industry’s growth of 226.9%.

Image Source: Zacks Investment Research

From a valuation standpoint, IBM trades at a forward price-to-sales ratio of 3.41, below the industry average of 7.35.

Image Source: Zacks Investment Research

Earnings estimates for 2026 have remained unchanged over the past 60 days, while the same for 2027 have increased.
 

Image Source: Zacks Investment Research

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

Electronic Arts logo is seen in this illustration taken September 30, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab

CompaniesBRUSSELS, June 24 (Reuters) - A group of investors including Saudi Arabia's ​Public Investment Fund has ‌sought EU subsidy approval for its $55 billion acquisition of videogame ​developer Electronic Arts (EA.O), opens new tab, a ​European Commission filing showed on ⁠Wednesday.

The deal is also ​being reviewed separately under the bloc's ​merger rules.

Jumpstart your morning with the latest legal news delivered straight to your inbox from The Daily Docket newsletter. Sign up here.

The Commission, which will assess the deal under its Foreign ​Subsidies Regulations aimed at ​preventing unfair non-EU subsidies to companies looking ‌to ⁠acquire rivals in the 27-country bloc or taking part in public tenders, set ​a July ​30 ⁠deadline for its decision.

The EU competition enforcer ​can clear the deal ​unconditionally ⁠after its preliminary review, or it can open a ⁠full-scale ​investigation if ​it has serious concerns.

Reporting by Foo Yun ​Chee; Editing by Jan Harvey

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Key Takeaways NextEra Energy is supported by stable regulated utility operations and a leading renewable platform.NEE plans more than $94.1B in capital investments through 2030 to expand generation and grid assets.NextEra Energy's ROE tops the industry average, and its shares have outperformed over six months. NextEra Energy Inc. (NEE - Free Report) is an attractive long-term utility investment, supported by its combination of stable regulated utility operations and a leading renewable energy platform. Its Florida Power & Light (“FPL”) unit generates predictable earnings, while NextEra Energy Resources drives growth through the extensive wind, solar and energy storage portfolio. This diversified business model balances earnings stability with strong long-term growth opportunities.

A cornerstone of NextEra Energy's growth strategy is its planned capital investment of more than $94.1 billion through 2030. At FPL, these investments will expand generation capacity, upgrade grid infrastructure and improve reliability to meet rising electricity demand in Florida. The resulting growth in the regulated rate base is expected to support steady earnings and cash flow expansion.

At NextEra Energy Resources, capital spending will accelerate the development of renewable energy, battery storage and transmission assets. Growing power demand from data centers, AI applications and electrification trends, along with increasing corporate demand for clean energy, provides a strong foundation for growth.

Overall, NextEra Energy's investment program strengthens both regulated utility and renewable energy businesses, positioning it for sustained earnings growth and expanding asset base. With a disciplined capital allocation strategy, NextEra Energy appears well-positioned to deliver sustainable shareholder value through consistent earnings growth and dividend expansion over the long term.

Capital Investments: A Key Growth Engine for UtilitiesCapital expenditures support long-term utility growth by expanding generation assets, upgrading grid infrastructure and enhancing reliability. These investments grow the regulated rate base, improve operational efficiency and boost earnings.

Duke Energy's (DUK - Free Report) outlook is supported by its regulated utility operations and robust capital investment plan of $103 billion in the 2026-2030 period. Investments in grid modernization, renewable energy and transmission infrastructure are expected to expand Duke Energy's operation and drive consistent earnings.

The Southern Company (SO - Free Report) benefits from a strategic capital spending program. The $78.1 billion Investments through 2030 in grid upgrades, generation capacity and clean energy projects are expected to grow Southern Company’s rate base and enhance the reliability of its services.

NextEra Energy’s Earnings Estimates Moving NorthThe Zacks Consensus Estimate for NEE’s 2026 and 2027 earnings per share indicates a year-over-year increase of 8.09% and 8.84%, respectively.

Image Source: Zacks Investment Research

NEE Stock Returns Better Than Its IndustryReturn on equity (“ROE”) is a financial ratio that measures how well a company uses its shareholders’ equity to generate profits. The current ROE of the company indicates that it is using shareholders’ funds more efficiently than peers.

NextEra Energy’s trailing 12-month ROE is 12.25%, ahead of the industry average of 11.22%.

Image Source: Zacks Investment Research

NEE Price PerformanceShares of NextEra Energy have gained 7.4% in the past six months compared with the Zacks Utility - Electric Power industry’s rally of 7%. 

Image Source: Zacks Investment Research

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

Wall Street expects a year-over-year increase in earnings on higher revenues when General Mills (GIS - Free Report) reports results for the quarter ended May 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on July 1. On the other hand, if they miss, the stock may move lower.

While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.

Zacks Consensus EstimateThis maker of Cheerios cereal, Yoplait yogurt and other packaged foods is expected to post quarterly earnings of $0.82 per share in its upcoming report, which represents a year-over-year change of +10.8%.

Revenues are expected to be $4.6 billion, up 1% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 1.46% lower over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that an aggregate change may not always reflect the direction of estimate revisions by each of the covering analysts.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for General Mills?For General Mills, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.21%.

On the other hand, the stock currently carries a Zacks Rank of #4.

So, this combination makes it difficult to conclusively predict that General Mills will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that General Mills would post earnings of $0.74 per share when it actually produced earnings of $0.64, delivering a surprise of -13.51%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

General Mills doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

That’s because Micron has become one of the most important suppliers in the artificial intelligence supply chain.

This Isn’t Just A Micron Earnings ReportWall Street will certainly be watching revenue, earnings and guidance. But investors may be paying even closer attention to commentary surrounding high-bandwidth memory, or HBM.

HBM has emerged as one of the most critical components inside modern AI servers. The technology works alongside Nvidia’s AI accelerators, helping process and move enormous amounts of data needed to train and run large language models.

In simple terms, no HBM means no cutting-edge AI system. As demand for AI infrastructure has exploded, Micron has become one of the biggest beneficiaries.

The Real Question Is AI SpendingInvestors aren’t just looking for signs that Micron is executing well.

Strong HBM demand, improving pricing and bullish commentary about future orders would suggest that hyperscale customers continue to invest heavily in AI data centers.

That would be welcome news for Nvidia, whose growth story remains heavily tied to ongoing AI spending.

On the other hand, any signs of slowing demand could raise questions about whether the AI buildout is beginning to moderate.

Why Nvidia Investors Are WatchingNvidia has become the face of the AI revolution, but Micron sits closer to the underlying infrastructure. While Nvidia sells the processors, Micron helps provide the memory required to make those systems work.

That gives Micron’s management team a unique vantage point into one of Wall Street’s most important themes.

As a result, Wednesday’s earnings report could serve as more than just an update on Micron’s business. It may become one of the market’s first real-time checks on the health of the broader AI spending boom.

And for Nvidia investors, that could make Micron’s earnings one of the most important reports of the quarter.

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Before Micron Technology’s (NASDAQ:MU | MU Price Prediction)  fiscal Q3 2026 results, Stephanie Link of Hightower told CNBC viewers what most retail traders watching a parabolic chart do not want to hear. The fundamentals are fine. The entry point is the problem. Micron is up 229% year to date after a run from $285.28 at the end of 2025 to $1,051.77 at Monday’s close, and Link wants you to wait.

What Link actually said Her exact framing on the segment was direct. “This stock is up 268% year to date. We’re short memory. ASPs are going to be north of 30 to 35%. I think the guidance is going to be great. I think it’s going to be a great report. Just high expectations. Wait for a pullback. You know I’m thinking like 10, 15%, 20%. I think that’s when you can buy.”

Link’s argument is with the cushion. The cycle itself looks healthy. DRAM supply is tight, hyperscalers are still writing capex checks like the cloud build needs another rerun, and Micron has been raising guidance at a cadence that makes the sell-side look quaint. The question on a day like today is whether a stock that already moved 40.05% in the past month can absorb good news without a digestion period.

The numbers behind the run The Q2 fiscal 2026 report Micron delivered in March set the stage for everything that has happened since. Revenue came in at $23.86 billion, up 196.3% year over year, beating the $19.51 billion consensus by 22.28%. Non-GAAP EPS landed at $12.20 against an $8.73 estimate. GAAP gross margin expanded to 74.4% from 36.8% a year earlier, an operating-leverage profile you usually only see in software businesses pretending to be hardware.

Then management guided fiscal Q3 to $33.5 billion in revenue, $19.15 in non-GAAP EPS, and roughly 81% gross margin. CEO Sanjay Mehrotra framed it succinctly in the Q2 release, saying “In the AI era, memory has become a strategic asset for our customers” while the board pushed through a 30% dividend increase to $0.15 per share. The same filing, documents $650 million in repurchases over the six months ended February 26, 2026.

Why expectations are the real risk Link’s caution has receipts. The Polymarket contract for tonight’s report prices a 96.65% probability that Micron beats the $19.66 non-GAAP EPS estimate. Options markets agree something is coming, with one widely shared r/options post noting implied volatility at the 98th percentile heading into the report.

When the prediction market consensus is functionally certain and the options chain is pricing a panic-grade move, a clean beat may already be in the stock. Reddit sentiment captured the tension, with one popular post observing that “MU is pricing in some insanely abnormal panic” the night before earnings.

The Tom Lee counterpoint Tom Lee of Fundstrat offered the patient man’s rebuttal on the same segment. “Investors have actually benefited from taking a longer time horizon on a lot of these ideas. There’s a lot of visibility and that’s pretty scarce when you look outside of AI.”

His point reframes Link’s tactical concern. If order books really extend into 2027 and HBM remains supply-constrained, then trying to thread a 15% pullback risks underweighting an asset that keeps repricing higher between dips.

What to watch tonight Three things matter when results hit. First, whether the company guides fiscal Q4 above the implicit run rate set by tonight’s $33.5 billion midpoint. Second, whether HBM allocations stretch deeper into calendar 2027, which would validate the supply-tightness thesis Link cited.

Third, the reaction itself. A muted move on a clean beat is exactly the pullback Link is waiting for, and the stock already gave back 1.63% on Tuesday’s session before the report. Patience and conviction are both defensible here. The trade is choosing which one matches your time horizon.

CJ Muse went on CNBC this morning and made the case that the memory cycle most investors are watching does not actually peak where they think it peaks. “The real takeaway for memory is that supply is going to be even tighter in 27 than 26,” the Cantor Fitzgerald semiconductor analyst said, “and because of that you can actually think about earnings growth and not only 27 but also 28.” That is the bullish framing investors will be testing against tonight’s fiscal Q3 numbers from Micron Technology (NASDAQ:MU | MU Price Prediction), which the company has confirmed will land after the close on June 24, 2026.

Why Muse is anchoring on 2028 The Cantor argument is essentially a duration trade dressed up as a memory call. If hyperscaler compute demand keeps growing through 2029 and 2030, then DRAM and HBM supply, which takes years and tens of billions of dollars to add, simply cannot catch up in the window analysts currently model. Muse pointed to the gap between compute and memory multiples as the giveaway. “If you look at compute multiples memory multiples there’s still significant upside,” he said, “as long as you underwrite the demand for compute, not peaking in 28, but extending into 2930 and beyond.”

The number doing the heavy work in Muse’s framework is $200. “I think the bulls are thinking about $200 of earnings for micron next calendar year. And if that’s right, you’re talking about a stock trading at five times,” he told CNBC, calling that a multiple he does not believe represents the right peak for the name. Micron closed Monday at $1,051.77. The stock is up 229% year to date and 717% over the past year. The VanEck Semiconductor ETF (NYSEARCA:SMH), for what it is worth, is on pace for its best first half since inception in 2000.

What the last quarter already told us Last quarter is the reason Muse can talk about this with a straight face. Micron’s fiscal Q2 2026, reported March 18, 2026, delivered revenue of $23.86 billion against an $19.51 billion estimate, with non-GAAP EPS of $12.20 versus $9.31 expected. GAAP gross margin reached 74.4%, up from 36.8% a year earlier, and the company guided fiscal Q3 to $33.5 billion in revenue plus or minus $750 million with non-GAAP gross margin near 81%. You can read the full 8-K press release on the SEC’s site.

CEO Sanjay Mehrotra framed the demand picture more soberly than the numbers might suggest. “In the AI era, memory has become a strategic asset for our customers, and we are investing in our global manufacturing footprint to support their growing demand,” he said in the release. The capex line is what makes Muse’s thesis interesting. New fabs ordered today come online in 2028 at the earliest, which leaves 2027 supply largely fixed.

SanDisk is telling you the same story If you want a second data point, look at SanDisk (NASDAQ:SNDK), the NAND-focused spinoff trading at $1,930 after a 601% year-to-date move. Its most recent quarter posted revenue of $5.95 billion, up 251% year over year.

Datacenter revenue alone grew 645%. CEO David Goeckeler flagged what he called “a structural memory shortage unlikely to ease before 2028” in earlier commentary, language that lines up almost exactly with Muse’s framing.

What to actually watch tonight Polymarket has the crowd pricing a 96.7% probability that Micron beats on the bottom line tonight, against a consensus EPS estimate of $19.66. The beat itself matters less than whether management’s guide and any commentary about HBM3E allocations through 2027 validate the $200 EPS bull case Muse is using.

Analyst consensus targets sit below the current price, with 39 buys, 4 holds, and 1 sell. Sell side has been chasing the move.

The risk Muse himself flags is whether AI workload growth genuinely extends into 2029 and 2030, or whether new capacity arrives faster than the bulls expect. Tonight will not settle that. The order book commentary on the call might.