Circle Internet Group (NYSE:CRCL) shares rose 7% after the company announced it received approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish its own national trust bank, a move aimed at strengthening the infrastructure supporting its USDC stablecoin.
The company said the OCC approved the establishment of First National Digital Currency Bank, which will operate under the name Circle National Trust. The bank will operate under direct federal oversight from the OCC, which regulates national banks and national trust banks.
Circle said the approval will allow Circle National Trust to provide fiduciary digital asset custody services for Circle and its affiliates when it begins operations. The bank’s approved business plan also allows for the possibility of eventually offering custody services to a limited number of institutional clients, including banks and other financial institutions.
The company said the charter is also designed to support potential future capabilities, including management of the USDC Reserve, which would place those operations under federal regulatory oversight.
“OCC approval to establish Circle National Trust marks a defining step in bringing blockchain technology and digital assets into the core of the U.S. financial system,” Circle CEO Jeremy Allaire said in a statement.
“Federal oversight of our trust bank sets a new standard for transparency, governance, and scale for Circle’s infrastructure and unlocks a new phase of adoption, where leading financial institutions can build on public blockchains with clarity and confidence.”
Circle said the national trust bank structure aligns digital asset custody operations with the framework used by traditional national trust banks, including fiduciary standards for safeguarding client assets.
Circle Internet Group (NYSE:CRCL) shares rose 7% after the company announced it received approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish its own national trust bank, a move aimed at strengthening the infrastructure supporting its USDC stablecoin.
The company said the OCC approved the establishment of First National Digital Currency Bank, which will operate under the name Circle National Trust. The bank will operate under direct federal oversight from the OCC, which regulates national banks and national trust banks.
Circle said the approval will allow Circle National Trust to provide fiduciary digital asset custody services for Circle and its affiliates when it begins operations. The bank’s approved business plan also allows for the possibility of eventually offering custody services to a limited number of institutional clients, including banks and other financial institutions.
The company said the charter is also designed to support potential future capabilities, including management of the USDC Reserve, which would place those operations under federal regulatory oversight.
“OCC approval to establish Circle National Trust marks a defining step in bringing blockchain technology and digital assets into the core of the U.S. financial system,” Circle CEO Jeremy Allaire said in a statement.
“Federal oversight of our trust bank sets a new standard for transparency, governance, and scale for Circle’s infrastructure and unlocks a new phase of adoption, where leading financial institutions can build on public blockchains with clarity and confidence.”
Circle said the national trust bank structure aligns digital asset custody operations with the framework used by traditional national trust banks, including fiduciary standards for safeguarding client assets.
The Zacks Retail – Restaurants industry continues to face challenges as elevated menu prices and cautious consumer spending weigh on customer traffic. At the same time, higher labor, food and occupancy expenses are putting pressure on profitability. Despite these headwinds, operators are benefiting from sustained demand for convenience, expanding digital ordering platforms, ongoing restaurant openings and increased investment in convenience-focused service formats. Stocks like Dutch Bros Inc. (BROS - Free Report) , Brinker International, Inc. (EAT - Free Report) , BJ's Restaurants, Inc. (BJRI - Free Report) and Arcos Dorados Holdings Inc. (ARCO - Free Report) are well-poised to benefit from the factors mentioned above.
Industry Description The Zacks Retail-Restaurants industry comprises several owners and operators of casual, upscale casual, fine dining, full-service and fast-casual restaurants. Some industry participants operate as roasters, marketers and retailers of specialty coffee. Some companies develop, operate and franchise quick-service restaurants worldwide. A few restaurant operators offer cooked-to-order dishes, including noodles and pasta, soups, salads and appetizers. Some industry players develop, own, operate, manage and license restaurants and lounges worldwide. A few companies also run technology-enabled Japanese restaurants in the United States and provide Japanese cuisine through a revolving sushi service model.
4 Trends Shaping the Future of the Restaurant Industry Challenging Consumer Environment: The restaurant industry continues to operate in a difficult macroeconomic backdrop. Elevated menu prices and cautious consumer spending have kept guest traffic under pressure as many diners look for better value. At the same time, rising labor, food and occupancy costs, along with increased spending on marketing and store development, are weighing on restaurant profitability. Intense competition is also forcing operators to invest more heavily in promotions and customer engagement.
2026 U.S. Restaurant Industry Outlook: According to the National Restaurant Association, U.S. restaurant and foodservice sales are projected to reach about $1.55 trillion in 2026, with modest real sales growth. While consumers continue to value dining out and convenience, operators are expected to face uneven traffic, persistent cost inflation and cautious household spending. Industry growth is likely to be supported more by pricing, menu mix and operational efficiency than by a broad-based recovery in customer visits.
Convenience and Digital Innovation Fuel Demand: Convenience remains a key driver of growth across the restaurant industry. Consumers continue to favor drive-thru, takeout and delivery options, prompting brands to expand their digital capabilities. Investments in mobile ordering, loyalty programs and AI-enabled technologies are helping restaurants improve operational efficiency, personalize customer engagement and encourage repeat purchases.
Expansion and Menu Strategy Support Revenues: Restaurant companies are pursuing growth through new restaurant openings, smaller-format locations and expansion into underserved markets. Many operators are also refining menu and pricing strategies by introducing premium offerings, value bundles and limited-time promotions to boost average ticket sizes. These initiatives are helping sustain revenue growth despite a slower recovery in overall guest traffic.
The Zacks Industry Rank Indicates Dull Prospects The Zacks Restaurant industry is grouped within the broader Retail-Wholesale sector. The industry carries a Zacks Industry Rank of #181, placing it in the bottom 27% of more than 247 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates dull near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the bottom 50% of the Zacks-ranked industries results from a negative earnings outlook for the constituent companies in aggregate. Before we present a few stocks that you may want to consider for your portfolio, let us take a look at the industry’s recent stock-market performance and valuation picture.
Industry Underperforms the S&P 500 and the Sector The Zacks Retail-Restaurants industry has underperformed the Zacks S&P 500 composite and its sector over the past year.
Over this period, the industry has declined 8% against the Zacks S&P 500 composite’s rise of 22.8%. The sector has increased 2.2% in the same period.
1-Year Price Performance
Restaurant Industry's Valuation Based on the forward 12-month P/E, a commonly used multiple for valuing restaurant stocks, the industry is currently trading at 22.81X compared with the S&P 500’s 21.03X. It is down from the sector’s forward 12-month P/E ratio of 25.05X.
Over the past five years, the industry traded as high as 29.01X and as low as 22.08X, the median being 24.85X.
P/E (F12M)
4 Key Restaurant Picks Dutch Bros: The company is benefiting from healthy traffic trends, supported by strong customer loyalty and increasing digital engagement. Dutch Bros continues to expand its store base in a disciplined manner, backed by attractive unit-level economics.
Shares of this Zacks Rank #2 (Buy) company have gained 6.4% in the past six months. BROS’ 2026 sales and earnings are anticipated to rise 27.1% and 22.4%, respectively, year over year. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Price and Consensus: BROS
Brinker International: The company is benefiting from strong traffic at Chili’s, marketing initiatives and a value-driven menu strategy. Also, the emphasis on technology initiatives, expansion and store upgrades bodes well.
Shares of this Zacks Rank #2 company have gained 7.7% in the past six months. EAT’s fiscal 2026 sales and earnings are anticipated to rise 7.9% and 20.8%, respectively, year over year.
Price and Consensus: EAT
BJ's Restaurants: The company continues to benefit from sustained traffic growth, menu innovation and operational initiatives. Fiscal first-quarter 2026 comparable sales growth was driven primarily by higher guest traffic, while restaurant-level margins remained stable despite elevated commodity and workers’ compensation costs.
Shares of this Zacks Rank #2 company have gained 33.6% in the past six months. BJRI’s 2026 sales and earnings are anticipated to rise 2.7% and decline 2.2%, respectively, year over year.
Price and Consensus: BJRI
Arcos Dorados: The company is benefiting from healthy comparable sales growth, supported by rising digital engagement, a growing loyalty platform and resilient guest traffic. Continued restaurant expansion, operational efficiency initiatives and a focus on value offerings position Arcos Dorados for sustainable long-term growth.
Shares of this Zacks Rank #2 company have gained 5% in the past six months. ARCO’s 2026 sales and earnings are anticipated to rise 10% and 180.8%, respectively, year over year.
Shore Capital has told clients it is time to buy back into Pan African Resources PLC (LSE:PAF, OTCQX:PAFRY, JSE:PAN), arguing that a brutal sell-off in the gold miner's shares has run well ahead of the fall in the metal itself.
The broker has kept its buy rating and 185p price target on the AIM-listed producer, implying 94% upside from the current 95p.
That gap exists because Pan African's shares have dropped below 100p, down 48% since 2 March.
Over the same stretch, the gold price has fallen 23%, and the GDX, an exchange-traded fund tracking gold miners, is down 35%.
In other words, the equity has fallen twice as far as the commodity that drives its earnings.
Analyst Edward Maravanyika at Shore Capital puts the metal's retreat down to two things: inflation expectations stoked by war-driven oil prices, and remarks from new Federal Reserve chair Kevin Warsh that markets read as hawkish.
Gold fell 12% in June alone, breaking below $4,000 an ounce in its worst month since 2008.
The broker's view is that Warsh has since softened his tone, and that the pullback may have left the metal set up attractively.
There is a floor argument too.
Central banks have been net buyers throughout the decline, with China's central bank stepping up purchases as prices fell.
The People's Bank of China added 480,000 troy ounces in June, its biggest monthly purchase since October 2023, extending a buying streak to 20 consecutive months.
Shore Capital thinks $4,000 an ounce may prove a policy-driven demand floor as a result.
For Pan African specifically, the question exercising investors is whether the dividend survives.
The company targets a payout of 40% to 50% of free cash flow after capital spending, tax and finance costs.
At the broker's base-case gold assumptions, the modelled dividends imply a 50% payout, comfortably within policy.
At the current spot price of $4,100 an ounce, that rises to 57%, and on consensus dividend estimates it reaches 64%.
Shore Capital's answer is the balance sheet: Pan African ended the financial year with net cash, which the broker expects to grow, providing a buffer.
It calculates the company can fund its growth plans and still deliver an average 7% dividend yield each year through to the 2031 financial year.
On production, management has pinned the recent shortfall on a slower ramp-up at its Tennant Mines operations in Australia and delays at the Nobles processing facility.
A full year from the White Devil deposit should drive a stronger 2027, with only 10% of that orebody drilled below 150 metres.
It's hard to overstate the impact of Space Exploration Technologies and its record-setting IPO on the stock market. SpaceX raised nearly $86 billion in its IPO on June 12, making it the largest IPO in history and giving Elon Musk's company a $2 trillion valuation.
SpaceX has arguably been the biggest narrative in the stock market this summer, as even some major indexes have changed their rules to allow large IPO stocks like SpaceX to join more quickly than usual. But it's far from a perfect stock -- SpaceX already carries an extremely high valuation, and it will be years before it turns a profit. Meanwhile, IPO stocks are notoriously volatile, and many of them need several quarters of performance before they start generating consistent gains.
However, some interesting artificial intelligence (AI) space stocks already have a track record of performance. Planet Labs (PL 4.58%) and BlackSky Technology (BKSY 3.40%) are two that are worth considering right now.
Image source: Getty Images.
1. Planet Labs There's a lot of activity around the Earth -- thousands of satellites are already in orbit, with more coming online every year. They include surveillance satellites operated by nation-states such as the U.S., as well as commercial satellites that provide internet access, communications, and Earth imagery.
That's where Planet Labs comes in. The company specializes in Earth imaging for agriculture, forestry, mapping, and government use. It operates about 200 Earth-imaging satellites and records the planet's landmass every day.
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The company's Pelican-class satellites use AI to process images and quickly identify subjects, and have incorporated Claude AI from Anthropic into its platform to help non-expert users use information from the company's satellites.
Revenue in the first quarter of fiscal 2027 (ended April 30) was $94 million, up 42% from a year ago. It reported a quarterly loss of $1 million, adjusted for earnings before interest, taxes, depreciation, and amortization (EBITDA), and its backlog grew 72% to more than $906 million.
Planet Labs stock is up more than 45% so far this year.
2. BlackSky Technology BlackSky is another Earth imaging company. BlackSky uses its constellation of high-resolution satellites and AI-enabled software, delivered through its Spectra platform, to provide real-time Earth observation and analytics.
Spectra uses artificial intelligence to automatically detect and classify vessels, vehicles, and aircraft, and can translate raw pixels into AI-driven analytics in less than 90 minutes. Its capabilities have allowed BlackSky to win government contracts valued up to $2.7 billion.
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BlackSky won $160 million in contracts in the first quarter of the year, and built on that this week when it announced it won a series of U.S. government contracts to use its AI-enabled object detection algorithms and automated battle damage analytics to help its customers evaluate damage inflicted on targets after military engagements.
Figma stock is showing weakness. Why are FIG shares declining? Why Bank of America Sees Potential in FigmaBank of America is challenging the bearish AI narrative surrounding Figma, arguing that generative AI is more likely to accelerate demand than disrupt the business.
The firm believes AI will increase the need for real-time collaborative product design while creating a new monetization opportunity through Figma’s hybrid pricing model, which combines traditional seat-based subscriptions with usage-based fees.
Bank of America recently reinstated coverage with a Buy rating and a $30 price target, saying the market has become overly pessimistic after the stock fell roughly 85% from its 52-week high on concerns that AI could erode its competitive position.
The firm’s bullish outlook is also supported by Figma’s growth profile and valuation. BofA forecasts revenue growth of 35.6% in 2026 and 23% in 2027, while valuing the company at about 8 times estimated 2027 enterprise value-to-sales, compared with a peer average of roughly 5.9 times.
Figma Stock: Key Levels and Momentum IndicatorsFrom a longer-term trend lens, the stock is still in repair mode after a steep 12-month decline of 81.15%, and it remains pinned well below the 200-day SMA at $31.44 (about 30.5% under that level). The bigger-picture trend also stays pressured by the death cross that formed in January (50-day SMA below the 200-day SMA), which often keeps rallies "sellable" until price can reclaim longer moving averages.
Nearer term, price is back above the 20-day SMA ($19.55) and 50-day SMA ($20.65), but it’s essentially battling the 100-day SMA at $22.05 (about 0.9% overhead), a common spot where rebounds stall. That "stuck at the 100-day" setup matters because it can turn into either a base-building breakout (if reclaimed) or a lower high (if rejected).
Momentum is improving: MACD is above its signal line and the histogram is positive, which suggests downside pressure is easing versus the prior downswing even if the primary trend hasn’t fully flipped. In plain terms, when MACD is above the signal line, it often means buyers are gaining traction and pullbacks may be shallower than they were earlier in the decline.
Key Resistance: $25.50 — a nearby pivot zone where rebounds can stall before the stock can work back toward longer-term averages Key Support: $18.00 — a nearby floor near the lower end of the recent range, where buyers previously stepped in What Is Figma and How Does It Generate Revenue?Figma is focused on transforming ideas into digital products and experiences, with a browser-based platform that spans the software creation lifecycle rather than treating design as a single step. It makes money primarily through subscription access to its platform, which is built around collaboration across designers, developers, and product teams.
That business model is why the AI debate matters: if AI increases the number of people building digital products and makes workflows more complex, a centralized collaboration layer can become more valuable, not less. In Bank of America’s view, that dynamic supports additional monetization through usage-based AI credits alongside seat-based pricing.
BofA pointed to early AI monetization signals: in Q1 2026, 75% of enterprise customers that exceeded AI credit limits bought additional credits, and net dollar retention was 139%. It also cited enterprise customers generating more than $100,000 in ARR rising 48% year over year, a data point that helps explain why the stock reacted so sharply to the AI "demand driver" framing.
Figma Stock Price Movement on FridayFIG Stock Price Activity: Figma shares were down 1.75% at $21.88 at the time of publication on Friday, according to Benzinga Pro data.
Image: Shutterstock
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Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.
The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.
It also includes access to the Zacks Style Scores.
What are the Zacks Style Scores? Developed alongside the Zacks Rank, the Zacks Style Scores are a group of complementary indicators that help investors pick stocks with the best chances of beating the market over the next 30 days.
Each stock is given an alphabetic rating of A, B, C, D or F based on their value, growth, and momentum qualities. With this system, an A is better than a B, a B is better than a C, and so on, meaning the better the score, the better chance the stock will outperform.
The Style Scores are broken down into four categories:
Value ScoreValue investors love finding good stocks at good prices, especially before the broader market catches on to a stock's true value. Utilizing ratios like P/E, PEG, Price/Sales, Price/Cash Flow, and many other multiples, the Value Style Score identifies the most attractive and most discounted stocks.
Growth ScoreGrowth investors, on the other hand, are more concerned with a company's financial strength and health, and its future outlook. The Growth Style Score examines things like projected and historic earnings, sales, and cash flow to find stocks that will experience sustainable growth over time.
Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.
VGM ScoreIf you want a combination of all three Style Scores, then the VGM Score will be your friend. It rates each stock on their combined weighted styles, helping you find the companies with the most attractive value, best growth forecast, and most promising momentum. It's also one of the best indicators to use with the Zacks Rank.
How Style Scores Work with the Zacks Rank The Zacks Rank, which is a proprietary stock-rating model, employs earnings estimate revisions, or changes to a company's earnings expectations, to make building a winning portfolio easier.
#1 (Strong Buy) stocks have produced an unmatched +23.94% average annual return since 1988, which is more than double the S&P 500's performance over the same time frame. However, the Zacks Rank examines a ton of stocks, and there can be more than 200 companies with a Strong Buy rank, and another 600 with a #2 (Buy) rank, on any given day.
But it can feel overwhelming to pick the right stocks for you and your investing goals with over 800 top-rated stocks to choose from.
That's where the Style Scores come in.
To have the best chance of big returns, you'll want to always consider stocks with a Zacks Rank #1 or #2 that also have Style Scores of A or B, which will give you the highest probability of success. If you're looking at stocks with a #3 (Hold) rank, it's important they have Scores of A or B as well to ensure as much upside potential as possible.
As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.
A stock with a #4 (Sell) or #5 (Strong Sell) rating, for instance, even one with Scores of A and B, will still have a declining earnings forecast, and a greater chance its share price will fall too.
Thus, the more stocks you own with a #1 or #2 Rank and Scores of A or B, the better.
Stock to Watch: Copa Holdings (CPA - Free Report) Copa Holdings is based in Panama City, Panama. The company, through its main subsidiaries — Copa Airlines and Copa Colombia — offers airline passenger and cargo services. Copa Airlines was founded in 1947. Copa Columbia was purchased in 2005.
CPA is a #3 (Hold) on the Zacks Rank, with a VGM Score of A.
Additionally, the company could be a top pick for growth investors. CPA has a Growth Style Score of A, forecasting year-over-year earnings growth of 1.6% for the current fiscal year.
For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $2.33 to $16.54 per share. CPA boasts an average earnings surprise of +6.5%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, CPA should be on investors' short list.
Investors often turn to recommendations made by Wall Street analysts before making a Buy, Sell, or Hold decision about a stock. While media reports about rating changes by these brokerage-firm employed (or sell-side) analysts often affect a stock's price, do they really matter?
Let's take a look at what these Wall Street heavyweights have to say about Silicon Motion (SIMO - Free Report) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.
Silicon Motion currently has an average brokerage recommendation (ABR) of 1.09, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 11 brokerage firms. An ABR of 1.09 approximates between Strong Buy and Buy.
Of the 11 recommendations that derive the current ABR, 10 are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 90.9% and 9.1% of all recommendations.
Brokerage Recommendation Trends for SIMO
Check price target & stock forecast for Silicon Motion here>>>
While the ABR calls for buying Silicon Motion, it may not be wise to make an investment decision solely based on this information. Several studies have shown limited to no success of brokerage recommendations in guiding investors to pick stocks with the best price increase potential.
Do you wonder why? As a result of the vested interest of brokerage firms in a stock they cover, their analysts tend to rate it with a strong positive bias. According to our research, brokerage firms assign five "Strong Buy" recommendations for every "Strong Sell" recommendation.
This means that the interests of these institutions are not always aligned with those of retail investors, giving little insight into the direction of a stock's future price movement. It would therefore be best to use this information to validate your own analysis or a tool that has proven to be highly effective at predicting stock price movements.
Zacks Rank, our proprietary stock rating tool with an impressive externally audited track record, categorizes stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), and is an effective indicator of a stock's price performance in the near future. Therefore, using the ABR to validate the Zacks Rank could be an efficient way of making a profitable investment decision.
Zacks Rank Should Not Be Confused With ABRAlthough both Zacks Rank and ABR are displayed in a range of 1--5, they are different measures altogether.
The ABR is calculated solely based on brokerage recommendations and is typically displayed with decimals (example: 1.28). In contrast, the Zacks Rank is a quantitative model allowing investors to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.
Analysts employed by brokerage firms have been and continue to be overly optimistic with their recommendations. Since the ratings issued by these analysts are more favorable than their research would support because of the vested interest of their employers, they mislead investors far more often than they guide.
On the other hand, earnings estimate revisions are at the core of the Zacks Rank. And empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.
Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.
Is SIMO a Good Investment?In terms of earnings estimate revisions for Silicon Motion, the Zacks Consensus Estimate for the current year has increased 10.9% over the past month to $8.96.
Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.
The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #1 (Strong Buy) for Silicon Motion. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Therefore, the Buy-equivalent ABR for Silicon Motion may serve as a useful guide for investors.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in POET over 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.
LOS ANGELES, July 10, 2026 (GLOBE NEWSWIRE) -- The Schall Law Firm, a national shareholder rights litigation firm, reminds investors of a class action lawsuit against Futu Holdings Limited (“Futu” or “the Company”) (NASDAQ: FUTU) for violations of §§10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the U.S. Securities and Exchange Commission.
Investors who purchased the Company’s securities between May 24, 2023 and May 27, 2026, inclusive (the “Class Period”), are encouraged to contact the firm before August 25, 2026.
If you are a shareholder who suffered a loss, click here to participate.
We also encourage you to contact Brian Schall of the Schall Law Firm, 2049 Century Park East, Suite 2460, Los Angeles, CA 90067, at 310-301-3335, to discuss your rights free of charge. You can also reach us through the firm's website at www.schallfirm.com, or by email at [email protected].
The class, in this case, has not yet been certified, and until certification occurs, you are not represented by an attorney. If you choose to take no action, you can remain an absent class member.
According to the Complaint, the Company made false and misleading statements to the market. Futu failed to maintain compliance with the China Securities Regulatory Commission (“CSRC”). The Company was likely to face regulatory action in China due to its failure to comply with CSRC regulations. Based on these facts, the Company’s public statements were false and materially misleading throughout the class period. When the market learned the truth about Futu, investors suffered damages.
Join the case to recover your losses
The Schall Law Firm represents investors around the world and specializes in securities class action lawsuits and shareholder rights litigation.
This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and rules of ethics.
CONTACT:
The Schall Law Firm
Brian Schall, Esq.,
www.schallfirm.com
Office: 310-301-3335 [email protected]
Key Takeaways Seagate raised its annual revenue growth outlook to at least 20% on stronger cloud demand.STX said Mozaic HAMR drives shipped to its first CSP as AI boosts demand for high-capacity HDDs.STX said nearline capacity is largely allocated through 2027, supporting visibility into 2028 and beyond. On its last earnings call, Seagate Technology Holdings plc (STX - Free Report) highlighted that the top three global cloud service providers (CSPs) have nearly doubled their Remaining Performance Obligations (RPO) to a record $1.1 trillion, signaling a massive pipeline of future cloud and AI infrastructure spending that could drive stronger demand for STX's high-capacity storage solutions. RPO represents the total value of contracted revenue that companies have yet to recognize. For cloud providers, RPO includes multi-year commitments from enterprise customers using cloud infrastructure, AI services, software platforms and data solutions.
Seagate highlighted strong momentum in HAMR adoption in 2025, with Mozaic-based 3TB-per-disk HAMR drives shipping to its first CSP. STX’s strategy rests on three pillars: durable storage demand, a strong technology roadmap and disciplined execution. AI-driven applications are accelerating data creation, increasing retention needs and expanding reliance on historical datasets from cloud to edge, reinforcing demand for cost- and energy-efficient, high-capacity HDDs. Its Mozaic platform and HAMR innovation position it to meet this demand with timely technology, while its build-to-order model, pricing discipline and capital allocation framework drive margin expansion and long-term value creation.
This combination is already pushing performance ahead of prior targets, leading Seagate to raise its annual revenue growth outlook to at least 20%. Confidence is supported by sustained cloud investment, with hyperscalers continuing to expand infrastructure spending and future commitments, as reflected in sharply rising RPO levels. Nearline products—about 90% of exabyte shipments—remain in high demand, with capacity largely allocated through 2027, supported by long-term supply agreements, build-to-order contracts and value-based pricing that enhance visibility and profitability into 2028 and beyond.
Rising CSP Spending Intensifies Storage Competition for STXWestern Digital Corporation (WDC - Free Report) is gaining from strength across end markets, riding on AI-led storage needs and multi-year agreements extending through 2028-29. To address the growing needs of mid-scale cloud and enterprise customers, WD is expanding its Platforms business to deliver hyperscale-like efficiency without requiring hyperscale resources. With UltraSMR technology, compatible across both ePMR and HAMR drives, WDC is broadening customer adoption. Three of its largest customers have already embraced the technology, with two meeting nearly all of their exabyte demand through UltraSMR and the third quickly scaling toward similar levels. Management expects all major customers to be qualified on UltraSMR by the end of calendar 2027.
Micron Technology (MU - Free Report) is transforming its customer relationships through strategic agreements across data center, consumer and auto markets. MU has signed 16 SCAs, generally structured as take-or-pay agreements with binding volume commitments over multiple years. These signed agreements represent roughly 20% of DRAM volume and a third of NAND volume over the agreement period. When completed, Micron expects half or more of its revenues to be under SCAs. Fourteen of the 16 agreements have cumulative revenues at minimum contract pricing of approximately $100 billion. The signed agreements also include projected customer deposits and related financial commitments of $22 billion, including approximately $18 billion in cash deposits.
STX’s Price Performance, Valuation & EstimatesIn the past year, STX shares have skyrocketed 504.7%, outperforming the Computer Integrated Systems industry’s growth of 227.6%.
Image Source: Zacks Investment Research
Going by the price/earnings ratio, the company’s shares currently trade at 31.48 forward earnings compared with 14.04 for the industry.
Image Source: Zacks Investment Research
STX is currently witnessing an uptrend in estimate revisions. Earnings estimates for fiscal 2026 have inched up 0.3% to $14.93 over the past 60 days, while the same for fiscal 2027 has gone up 6.5% to $28.05.
Image Source: Zacks Investment Research
STX currently boasts a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Seagate (STX) shares moved slightly higher after Wells Fargo upgraded the stock. Alex Coffey talks about the analyst note, which also includes a price target hike for Western Digital (WDC).
Key Takeaways Cerebras plans its first European AI data center by 2026-end and 200 MW of capacity by 2027-end.European expansion aims to cut latency and meet demand for sovereign, locally hosted AI infrastructure.Cloud and services revenues rose 167% to $79.8 million, with growth expected to accelerate through 2026. Cerebras Systems (CBRS - Free Report) is accelerating its European expansion to capitalize on surging demand for AI inference infrastructure across enterprises, governments and research institutions. The company announced plans to bring its first European AI data center online by the end of 2026 while expanding total regional AI compute capacity to 200 MW by the end of 2027, with deployments planned across France and the Nordic region. A portion of this capacity is expected to support OpenAI workloads under their existing partnership agreement.
The expansion is expected to bring Cerebras’ high-speed inference infrastructure closer to European customers, reducing latency for increasingly complex AI applications while addressing growing demand for sovereign AI infrastructure. CBRS’ management believes European enterprises, governments and research organizations are increasingly seeking locally hosted AI compute as an alternative to capacity concentrated in the United States and Asia.
European Build-Out Supports CBRS’ Long-Term ProspectsThe European expansion reinforces Cerebras’ broader strategy of rapidly scaling its global AI cloud infrastructure. On the first-quarter 2026 earnings call, management highlighted that CBRS is aggressively adding data center capacity across the United States, Canada and Europe, including France and the Nordics, while pursuing additional opportunities in Israel, the UAE, Australia, Singapore, India and Indonesia to meet accelerating customer demand. Cerebras emphasized that expanding global infrastructure is essential to supporting the next phase of AI adoption.
The strategy complements Cerebras’ rapidly growing cloud business. In the first quarter of 2026, cloud and services revenues increased 167% year over year to $79.8 million (core basis), supported by the OpenAI deployment and higher utilization of the Cerebras Cloud platform. The company expects cloud revenue growth to accelerate further throughout 2026 as additional AI infrastructure comes online.
The expansion also strengthens Cerebras’ ability to execute on its long-term commitments. The company has a multi-year agreement to provide 750MW of AI inference capacity to OpenAI, with an option for OpenAI to purchase an additional 1.25 gigawatts, bringing potential deployment to 2 gigawatts by 2030. As of March 31, 2026, the company reported $25 billion of remaining performance obligations, largely driven by the OpenAI agreement.
Cerebras Faces Tough CompetitionCerebras is facing stiff competition from the likes of CoreWeave (CRWV - Free Report) and NVIDIA (NVDA - Free Report) in the AI infrastructure domain.
CoreWeave is pursuing one of the industry's largest AI infrastructure expansions. In partnership with NVIDIA, the company plans to build more than 5 gigawatts (GW) of AI factory capacity by 2030 while adopting multiple generations of NVIDIA AI platforms. It also recently expanded its European footprint through new AI cloud deployments in Stockholm, Sweden, powered by renewable energy, and signed a $21 billion long-term AI infrastructure agreement with Meta.
Meanwhile, NVIDIA is enabling partners to rapidly deploy AI factories. Through expanded collaborations with CoreWeave and other cloud providers, the company is supporting multi-gigawatt AI infrastructure deployments built around its latest GPU, CPU and networking platforms, reinforcing its leadership in hyperscale AI infrastructure. NVIDIA-backed Nscale announced an expansion of its collaboration with Microsoft and Start Campus with 66,000+ NVIDIA Rubin GPUs, starting in late 2027. Nscale will be among the first providers globally to deploy the NVIDIA Vera Rubin platform to its customers in 2027.
CBRS’ Share Price Performance, Valuation & EstimatesCerebras shares have dropped 12.4% in a month, underperforming the broader Zacks Business Services sector’s return of 3.7%.
CBRS Stock’s Price Performance
Image Source: Zacks Investment Research
Cerebras stock is trading at a forward 12-month price/sales of 24.15X, close to its median of 27.38X. CBRS has a Value Score of D.
CBRS’ Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 loss is pegged at 89 cents per share, narrower than the loss of $1.13 per share over the past 30 days.
Cerebras currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways SpaceX's launch scale and Starlink growth underpin its vertically integrated infrastructure platform.Starlink reached 10.3 million subscribers and generated $7.2 billion in 2025 adjusted EBITDA.Starship remains in testing, while AI posted a $1.2 billion adjusted EBITDA loss in 2025. Space Exploration Technologies Corp. (SPCX - Free Report) is not a simple launch-services story. It combines reusable rockets, satellite broadband and artificial intelligence assets into one vertically integrated infrastructure platform.
That breadth creates a wide opportunity set, but also makes the stock harder to value. Starlink is already showing scale, while Starship and AI still require proof that investment can translate into durable returns.
SpaceX Has Three Growth EnginesSpaceX operates through Space, Connectivity and AI. The Space segment designs, manufactures and launches reusable rockets and spacecraft, with Falcon 9 and Falcon Heavy serving commercial, civil, international and government missions.
Connectivity is built around Starlink Consumer Broadband, enterprise and government solutions and mobile services. The AI segment expanded after the Feb. 2, 2026, xAI acquisition, bringing Grok, X and the COLOSSUS compute clusters into the platform.
SPCX Launch Scale Sets the FoundationLaunch scale remains SpaceX's clearest moat. As of March 31, 2026, the company had completed about 650 orbital launches, including roughly 620 Falcon 9 flights and 11 Falcon Heavy flights. Falcon 9 had a mission success rate of more than 99%, while Falcon Heavy had a 100% success rate. That cadence matters because lower-cost internal launch capacity helps SpaceX deploy Starlink satellites, support future mobile services and prepare for Starship V3, which is designed to deliver 100 metric tons to low Earth orbit.
SpaceX Is Turning Starlink Into Cash FlowStarlink is the cleanest operating proof point in the story. The network had about 9,600 satellites in low Earth orbit and roughly 10.3 million subscribers across 164 countries and other markets as of March 31, 2026.
SpaceX reported median residential peak-hour download speed of 225 Mbps. Segment adjusted EBITDA reached $7.2 billion in 2025 and $2.1 billion in the first quarter of 2026, showing that satellite broadband has moved into recurring revenue and meaningful cash generation.
AT&T Inc. (T - Free Report) provides a terrestrial fiber and wireless benchmark for the connectivity side of the debate. Verizon Communications Inc. (VZ - Free Report) offers a second large-network comparison as investors weigh how satellite broadband may complement or pressure traditional coverage models.
SPCX AI Ambitions Add Long-Term OptionalityAI broadens SpaceX's long-term narrative beyond rockets and broadband. The platform includes Grok, X and compute infrastructure through COLOSSUS and COLOSSUS II, with about 550 million monthly active users across Grok and X as of March 31, 2026.
The opportunity is still early. The AI segment generated $3.2 billion of revenues in 2025, but adjusted EBITDA was negative $1.2 billion, reflecting a multi-year investment cycle tied to consumer AI, enterprise AI, compute services and future orbital AI compute.
The planned Anysphere acquisition adds another software angle. The all-stock deal, valued at $60 billion, is aimed at strengthening SpaceX's position in enterprise AI through the developer platform behind Cursor, but the transaction still depends on closing conditions and regulatory approvals.
SpaceX Signals Point to a Wait-and-See ViewThe bottom line is that SPCX has rare infrastructure advantages, but the stock's signal is mixed rather than clearly bullish. Starlink is scaling, Falcon launch reliability is established and AI adds optionality, yet Starship remains in testing and capital needs remain elevated.
The stock currently carries a Zacks Rank #3 (Hold). That rank points to a more balanced near-term setup, which fits a company where earnings estimate trends do not yet present a stronger short-term case.
The Style Scores send a similar message. SPCX has a VGM Score of D, with a Value Score of F, Growth Score of C and Momentum Score of A. Momentum is favorable, but weaker value and combined style readings suggest investors may want clearer evidence that newer platforms can generate returns before treating the stock as more than a wait-and-see story.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways SPCX served 10.3M Starlink subscribers across 164 markets with about 9,600 low-Earth-orbit satellites.SpaceX plans V3 satellite launches in 2H 2026, each designed for one Tbps of downlink capacity.SpaceX added xAI, Grok, X and COLOSSUS, while AI posted negative $1.2B adjusted EBITDA in 2025. Space Exploration Technologies Corp. (SPCX - Free Report) gives investors exposure to reusable launch, satellite broadband and AI infrastructure in one public stock. That mix makes the company visible as markets look for durable growth themes.
The harder question is whether trend exposure will convert into dependable returns. SpaceX still must execute across capital-heavy platforms where technology, regulation and monetization all matter.
SpaceX Benefits From Broadband Demand GrowthDemand for reliable connectivity remains central to the SpaceX story. Starlink served about 10.3 million subscribers across 164 countries and other markets as of March 31, 2026, supported by roughly 9,600 satellites in low Earth orbit.
The Connectivity segment spans Starlink Consumer Broadband, Enterprise Solutions, Government Solutions and Starlink Mobile. That breadth matters because satellite broadband is moving from niche coverage into recurring consumer, commercial and government markets.
AT&T Inc. (T - Free Report) highlights the telecom industry’s interest in extending coverage beyond terrestrial networks. Verizon Communications Inc. (VZ - Free Report) offers a similar context, as wireless carriers look to satellites to reduce coverage gaps.
SPCX Is Pushing Capacity Higher With V3SpaceX expects to begin deploying V3 broadband satellites on Starship in the second half of 2026. The plan is important because V3 satellites are designed to deliver one Tbps of downlink capacity per satellite.
Higher capacity could support more users, heavier data consumption and broader enterprise and government use cases. It also ties Starlink’s next growth phase to Starship, making launch progress a key input for the broadband story.
SpaceX Links AI to Real InfrastructureSpaceX’s AI strategy reflects a wider shift in which AI depends on more than software models. Compute clusters, power, networks, data and distribution are becoming part of the competitive equation.
The company completed the xAI acquisition on Feb. 2, 2026, adding Grok, X and COLOSSUS compute infrastructure to its platform. SpaceX reported about 550 million monthly active users across Grok and X as of March 31, 2026.
That gives the company a path to monetize consumer AI, enterprise AI, compute services and future orbital AI compute. Still, AI is early for SpaceX and has not yet established itself as a consistent earnings driver.
SPCX Trend Story Still Needs ExecutionTheme alignment is not enough by itself. Starship remains in testing, even though it is central to V3 satellite deployment, Starlink Mobile V2, AI compute satellites and longer-term space ambitions. AI also brings financial drag. The AI segment generated $3.2 billion of revenues in 2025 but posted segment adjusted EBITDA of negative $1.2 billion, reflecting its earlier stage and heavy investment needs.
Regulatory and deal execution are additional variables. Spectrum transactions, launch approvals and international permissions can influence how quickly SpaceX turns technology road maps into commercial scale.
SpaceX Scores Show Momentum Over ValueThe bottom line is that SpaceX tracks several attractive trends, but the stock’s current profile still argues for patience. The company has rare assets, yet investors need clearer evidence that newer platforms can scale with improving returns.
SPCX currently carries a Zacks Rank #3 (Hold). That ranking fits a stock where the long-term opportunity remains visible but the near-term signal is not strong enough to support an aggressive stance.
The Style Scores reinforce that mixed read. SPCX has a Momentum Score of A, but that sits beside a Value Score of F, Growth Score of C and VGM Score of D. Momentum investors may see favorable trading action, while value- and balanced-style investors have less support from the current scores.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Citigroup sees Toll Brothers (TOL) outperforming in a K-shaped housing recovery, with the firm issuing an upgrade for the company. Rick Ducat shows that Toll Brothers has outperformed its peers and breaks down the volatile trading action seen in recent weeks.
The EU announced on Friday that Meta must overhaul Facebook’s and Instagram’s addictive design features or face a fine. The tech giant is in breach of the Digital Services Act by focusing on features like infinite scroll, autoplay, push notifications, and highly personalized recommendation algorithms, the European Commission said.
The Commission says these features fuel the user’s urge to keep scrolling and shift the brain into “autopilot mode,” which contributes to unhealthy habits and compulsive use. It found that Meta failed to adequately assess the risks posed by the addictive design of its platforms to users’ physical and mental well-being, including minors and vulnerable adults.
The Commission also accused Meta of ignoring evidence about the amount of time minors spend on Instagram and Facebook at night and how features such as Reels and Stories could encourage excessive or compulsive use of the platforms.
“Evidence also shows that Meta’s current mitigation measures failed to effectively tackle the risks stemming from its addictive design,” the Commission wrote. “For example, Instagram’s and Facebook’s time management tools, including those activated by default for teens, can be easily dismissed and do not lead to a meaningful reduction and control of the usage of the service.”
It’s calling on Meta to disable key addictive features, such as autoplay and infinite scroll by default, and to introduce effective screen-time breaks, as well as modify its recommendation algorithm to make it less focused on user engagement.
The findings are not final, and Meta will now have the opportunity to review the evidence against it and submit a formal response. If the Commission’s findings are confirmed, Meta faces a fine of up to 6% of its total global annual turnover.
Meta did not immediately respond to TechCrunch’s request for comment.
Friday’s announcement marks the second time this year that the EU Commission has found Meta contravening its laws. In April, the Commission found that Meta was failing to prevent children under 13 from using Facebook and Instagram.
Meta has also been facing scrutiny in the U.S. for failing to protect young users on its platforms. Most recently, Meta said in a court filing on Monday that four U.S. states are seeking $1.4 trillion in penalties over claims that the tech giant designed Facebook and Instagram to addict young users and that it misled the public about the platforms’ safety.
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Aisha is a consumer news reporter at TechCrunch. Prior to joining the publication in 2021, she was a telecom reporter at MobileSyrup. Aisha holds an honours bachelor’s degree from University of Toronto and a master’s degree in journalism from Western University.
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Meta Platforms Inc (NASDAQ:META, XETRA:FB2A, SIX:FB) has announced plans to build a 1-gigawatt data centre in Sturgeon County, Alberta, marking the technology company’s first such facility in Canada as it expands its computing infrastructure to support artificial intelligence development.
The project represents an investment of more than C$13 billion ($9.17 billion) and will become Meta’s 33rd data centre globally. The facility will be optimized for AI workloads and is expected to support the company’s broader artificial intelligence initiatives and digital services.
Construction of the data centre is expected to support more than 3,000 workers at peak activity, while the completed facility will create more than 300 operational jobs, Meta said.
The company also plans to invest about C$60 million in local infrastructure improvements, including roads and water infrastructure, and provide funding to local community organizations.
Alberta’s energy resources and climate were factors in the location decision, according to Meta. The province’s electricity grid is largely powered by natural gas, while its cooler climate can help reduce the cost of cooling data centre equipment.
Meta said it will fully fund new power generation and grid infrastructure required for the Alberta facility. The company has partnered with Pembina (NYSE:PBA) Pipeline, which is moving forward with its Greenlight Electricity Centre project, a natural gas-fired power generation facility in Sturgeon County expected to begin operations in late 2030. Meta has entered into a long-term tolling agreement linked to the facility.
Pembina estimates the project will require about 150 million cubic feet per day of natural gas, creating additional demand for Western Canadian natural gas producers.
Meta said the data centre’s electricity use will be matched with 100% clean and renewable energy and that it is designing the facility to limit water consumption. The company plans to use a closed-loop liquid cooling system combined with dry cooling, which it said will eliminate operational water use in the cooling system.
The company added that water use at the site will be limited to domestic needs, fire protection and equipment maintenance. Meta has set a goal of becoming water positive by 2030, meaning it aims to restore more water than it consumes globally across its owned operations.
Shares of Meta are set to end the week 13% higher at about $667.
META stock is moving. See the chart and price action here. Legal Risks for Meta’s Dopamine LoopEurope is moving even faster. Under the EU’s Digital Services Act (DSA), regulators are now applying systemic‑risk concepts to design features.
Preliminary findings announced Friday against TikTok and Meta accuse their products of using "addictive design" that creates mental‑health harms and other social costs.
Remedies in the EU are not limited to headline fines. Regulators can order platforms to throttle or disable specific engagement mechanisms, introduce friction and prioritize safety outcomes over raw attention metrics. That’s effectively a regulatory cap on how far Meta can push its feeds.
The cases in the U.S. and EU target the architecture of engagement itself. For Meta, whose ad business is built on maximizing time‑on‑site and interactions, that goes straight to the core of the model.
A De Facto Sin Tax on EngagementPublic policy is shifting from moderating content to moderating architecture. Dark patterns, dopamine loops and youth‑targeted engagement features are being reclassified from clever growth hacks to regulated risk factors.
As more courts treat these choices as negligence rather than neutral innovation, litigation and compliance costs start to function like a de facto "sin tax" on high‑intensity engagement.
Meta’s near‑term story is likely manageable: more lawsuits, more settlements, higher compliance spend. The longer‑dated risk is bigger and harder to model.
If EU‑style rules become the template globally, platforms may have to standardize safer, less sticky designs across markets. That would compress Meta’s ability to drive revenue by simply deepening engagement, forcing greater reliance on pricing power, product diversification and new business lines.
Meta isn’t alone here, but as the poster child for the attention economy, it’s likely to be the test case. The market hasn’t fully priced a world where engagement itself is constrained by law.
If that future arrives, Meta’s current legal battles could look less like noise — and more like the first draft of a new regulatory regime around digital addiction.
META Stock Price Activity: Meta stock was up 5.59% at $666.81 at the time of publication Friday, according to Benzinga Pro. Over the past month, META has gained about 14.9% versus a 2.6% rise in the S&P 500 and is up roughly 1% year-to-date compared to the index’s 9.8% gain.
Photo: Shutterstock
This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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Shares of Meta Platforms (META +5.91%) rallied Friday morning, gaining as much as 7.3%. As of 11:12 a.m. ET, the stock was still up 6%.
The catalyst that sent the social media and artificial intelligence (AI) specialist higher was a report that lauded the company's strategic pivot.
Image source: The Motley Fool.
A directional shift At one point, Meta's Llama models were highly rated, but that changed with last year's release of Llama 4, which was widely regarded as a relative failure. In response, CEO Mark Zuckerberg changed course, rebuilding Meta's AI organization from scratch. The company's efforts are beginning to bear fruit, according to independent AI and semiconductor research firm SemiAnalysis.
In a report released yesterday, the company issued a report card on Meta's quest for Superintelligence and its pivot over the past year, and gave Zuckerberg and company high marks. "Rebuilding your entire team from the ground up obviously comes with some short-term setbacks, and it appears Meta has finally finished paying down this debt."
The report went on to say that the restructuring of Meta's AI organization took it "to the next level." " We think this is an extremely underappreciated advantage for Meta Superintelligence Leadership (MSL) ... We're overall bullish on the future of MSL, but it's worth emphasizing that they are still basically at step 1."
Meta has effectively reentered the AI race with the release of its Muse Spark AI this week, which many consider competitive with top-tier models from OpenAI and Anthropic.
Today's Change
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Taking a step back, SemiAnalysis believes Meta's current strategy will yield future success:
At the simplest level, there are three things you need to build a true frontier model: data, talent, and compute. We believe Meta is the only hyperscaler/neolab on track to be world-class at all three and therefore has the best chance at catching up with Anthropic/OpenAI.
Zuckerberg is billing Muse Spark as "a strong agentic and coding model at a very low price," according to a post on X.
Investor sentiment has weighed on Meta in recent months, but the company's progress shows that pessimism is misplaced. And at 24 times earnings, the stock is a bargain.
Danny Vena, CPA has positions in Meta Platforms. The Motley Fool has positions in and recommends Meta Platforms. The Motley Fool has a disclosure policy.
The logo of Meta at the Meta Lab in Los Angeles, California, U.S., May 20, 2026. REUTERS/Daniel Cole Purchase Licensing Rights, opens new tab
SummaryCompaniesMeta previews AI detection tool alongside new image-generation modelReuters finds tool misses 55% of cropped AI images generated by Muse ImageExperts say watermark-based detection has limitationsJuly 10 (Reuters) - A new AI detection tool from Meta (META.O), opens new tab, which the tech company previewed this week alongside the launch of its image-generation model, Muse Image, failed to identify some of its own AI-generated images once they were cropped, according to a Reuters analysis.
The finding highlights the challenges of verifying AI-generated images after common alterations, a limitation that could make it harder to identify deepfakes online during a busy election year that includes the U.S. midterms.
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In an analysis of 40 images generated using Muse Image, Reuters found the detection tool verified all of the original AI-generated images but failed to verify 55% of the same images after they were cropped to approximately one-third to one-half of their original size.
On its website, opens new tab, Meta says the preview detection tool can identify its own AI-generated images, even if they are cropped, through an invisible watermarking system called Content Seal, which is embedded in every image generated by Muse Image and designed to help users verify whether it was created by Meta's AI models.
When asked about the results of the Reuters analysis of the detection tool, Meta noted that the tool was a preview. The company said the watermark is designed to remain intact after common edits, but that the signal may be lost if an image is heavily cropped.
Rival tech companies Google and OpenAI have cautioned that their own detection tools are not foolproof against image-alteration techniques.
In March, Meta's Oversight Board, a body of experts that makes binding decisions and issues recommendations on content issues across the company's social media platforms, called on the company, opens new tab to do more to address the "proliferation of deceptive AI-generated content" on its platforms and invest in stronger detection tools.
Siwei Lyu, a computer science professor at the State University of New York at Buffalo who researches AI image forensics, said he had not evaluated Meta's tool but that watermark-based systems have limitations.
"Watermark-based methods can be highly effective when the watermark remains intact, but any modification that removes or weakens the embedded signal — such as cropping, resizing, heavy compression, or editing — may reduce their effectiveness, depending on how the watermark is designed," Lyu said.
Sarah Barrington, an AI researcher and Ph.D. candidate at the UC Berkeley School of Information, said watermarking holds promise for the future of AI-generated content, but could only do so much.
“Like many preventive cybersecurity or physical security measures, it may not be fully watertight, but even if we catch only 90% of cases, that’s still a great leap from 0,” she said.
Reporting by Hardik Vyas in Bengaluru and Seana Davis in Barcelona; additional reporting by B Carmel Jaeslin and Josh Salisbury; Editing by Stephanie Burnett, Ken Li and Nia Williams
Our Standards: The Thomson Reuters Trust Principles., opens new tab
Meta shares rallied on Friday, lifting their gains for the week to 15%, on pace for the best weekly performance since early 2024, as optimism builds around CEO Mark Zuckerberg's artificial intelligence strategy.
Three months after introducing Muse Spark, its first proprietary foundation AI model, Meta made two significant announcements this week. On Tuesday, Meta released Muse Image, a new AI model for creating images, and part of an effort to attract creators and advertisers to its new subscription offerings. And on Thursday, the company unveiled Muse Spark 1.1, aimed at running agentic and coding workloads.
This week's revelations show Meta is aggressively trying to make a splash in AI models and compete against OpenAI, Anthropic and Google, which all have big head starts. They also underscore the company's efforts to diversify beyond ads with new revenue streams, and point to progress at Meta Superintelligence Labs, which is being led by Alexandr Wang.
A five-day chart of Meta stock.
With the latest rally, the stock has erased its losses for the year and is now up more than 2%. It's still way behind the Nasdaq, which has gained 13%
Meta also got a boost from reports that the company is progressing with its custom, in-house AI chips, revealed back in March as part of its data center expansion plans. Meta expects to start manufacturing its first chip, code-named Iris, in September as part of its goal to reach 14 gigawatts of computing power next year, according to Reuters.
"Meta may have engineered significant cost savings to get capacity cost per MW well below our and Street expectations," Justin Post, an analyst at Bank of America analyst, wrote following the report.
When Meta reported first-quarter earnings in April, the company raised 2026 guidance for its capital expenditures, or capex, to come between $125 billion and $145 billion and saw its shares sink 7%. At the time, investors appeared concerned about Meta's big AI spending that has yet to create new lines of businesses.
Now that Meta is conveying to investors a more concrete plan about how it will use its ever-growing data center infrastructure, such as potentially competing in the fiercely competitive cloud computing business against giants like Amazon and Microsoft, Wall Street appears more at ease.
It's possible that Meta could further increase its 2026 capex guidance when it reports its second-quarter earnings, BNP Paribas Equity Research senior analyst Nick Jomes said in a research note earlier this week. Jomes said that BNNP estimates Meta to raise that figure to come in between $135 billion to $155 billion.
"While we expect near-to medium term elevated capex, we believe Meta is well positioned to generate ample revenue to support its spending, driven by monetization of its own AI initiatives, advertising share gains, incremental subscription revenue, an optionality of cloud offering, and fees for external use of its AI models," Jomes said in the research note. "Recent subscription offer, the potential cloud offering as well as fees for access to its AI model all serve to provide incremental revenue beyond its core advertising revenue, diversify its revenue stream, and generate additional EBITDA and free cash flow."
Meta Platforms (NASDAQ:META | META Price Prediction) has spent 2026 in a frustrating chop, but our proprietary model sees the current pullback as an opportunity rather than a warning. With shares recovering off a June low and analyst sentiment overwhelmingly bullish, I think the setup for the next twelve months is more attractive than the tape suggests.
Our 24/7 Wall St. price target for Meta is $835.14, implying 32.25% upside from the current $631.48. My recommendation is buy, with a confidence level of 90%.
24/7 Wall St. Price Target Summary Metric Value Current Price $631.48 24/7 Wall St. Price Target $835.14 Upside 32.25% Recommendation BUY Confidence Level 90% A Rough Year for a Business That Keeps Beating Meta shares are down 6.58% year to date and 14.03% over the last year, sitting well below the August 2025 peak near $785. The stock has also just staged a 9.28% one-week rally off the June low.
The disconnect is that operations keep firing. Q1 2026 revenue hit $56.31 billion, growing 33.1% YoY, with EPS of $10.44 beating consensus by 56.79%. Investors have penalized shares over the raised FY2026 capex guide of $125 to $145 billion and Reality Labs losses of $4.03 billion in the quarter. Retail chatter has echoed that skepticism, with Reddit sentiment sitting at a bearish 31 despite the rally.
Why Bulls See a Breakout Ahead The bull case starts with pricing power. Ad impressions grew 19% YoY in Q1, and price per ad rose 12%, a combination competitors cannot match. Family daily active people reached 3.56 billion. Operating margin held at 41% despite the capex ramp.
Meta Superintelligence Labs released its first model this quarter, and Ray-Ban Meta continues to lead the smart glasses category. Of the 63 analysts covering the stock, 49 rate it Buy and 8 Strong Buy. Our bull case scenario points to $869.41 over twelve months if AI monetization surprises to the upside.
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The Risks Worth Watching The bear case centers on capital intensity. FY2025 free cash flow already fell 19.4% as capex nearly doubled. If ROI on the $125 to $145 billion capex plan disappoints, multiples compress fast. EU Digital Markets Act enforcement and 2026 youth-litigation trials add tail risk.
Bulls would counter that Q1 EPS included a one-time $8.03 billion tax benefit worth $3.13 per share, so underlying operating momentum is what matters, and it remains strong. Our bear case target lands at $724.94, still above today’s price.
I’d Buy It Here My 24/7 Wall St. price target is $835.14 with 90% confidence and a buy recommendation. The tipping factor is valuation: a forward P/E of 19 on a business compounding revenue north of 30% with 41% operating margins is difficult to argue against.
I’d be a buyer here if Q2 revenue lands inside the $58 to $61 billion guide. I’d stay on the sidelines if capex creeps above $145 billion without matching ad-pricing gains.
Year 24/7 Wall St. Price Target 2026 $835 2027 $965 2028 $1,110 2029 $1,275 2030 $1,454 These projections assume Meta continues executing on its AI infrastructure and ad-monetization roadmap. Significant upside could come from personal superintelligence commercialization, while downside risk hinges on regulatory outcomes and capex ROI.
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Meta Platforms Inc. NASDAQ:META shares climbed 6% in trading on Friday, becoming the top-performing Magnificent 7 stock.
It extended this week's rally as investors responded to a series of artificial intelligence-related developments, including reports of a new in-house AI chip, expanding computing capacity, and the launch of its latest AI model.
The stock is on track to post its 8th gain in the past 10 trading sessions and its strongest weekly performance since mid-April.
Friday's advance also pushed Meta above its 200-day moving average for the first time in more than two months.
Investor optimism received another boost after Reuters reported that Meta plans to begin manufacturing its custom-designed AI chip, codenamed "Iris," in September as part of its expanding AI infrastructure strategy.
Following the report, BofA Securities reiterated its Buy rating and maintained its $835 price target on the stock.
The brokerage now estimates Meta will spend about $22 billion per gigawatt of computing capacity in 2026, less than half its previous estimate of $45 billion.
BofA said building AI infrastructure for less than $30 billion per gigawatt could provide more attractive economics than Amazon and Google's estimated annual cloud revenue of $10 billion to $16 billion per gigawatt.
The infrastructure expansion is part of Meta's broader effort to scale its AI capabilities as competition among hyperscalers intensifies.
Meta also unveiled Muse Spark 1.1, describing it as its most capable AI model yet for coding and agentic tasks.
The release follows the debut of the original Muse Spark model in April and marks a more aggressive effort by Meta to compete with OpenAI and Anthropic in AI-powered coding tools.
Citizens said the launch represents a significant step in Meta's AI strategy while reinforcing expectations for continued growth in AI computing demand, despite execution risks.
Meta's chief AI officer Alexandr Wang highlighted the model's capabilities in a series of posts on X.
Calling it an “industry-competitive agentic and coding,” Wang said the model delivers strong tool use, a million-token context window, parallel subagents and advanced computer-use capabilities.
Referring to a review by SemiAnalysis, Wang wrote that “compute daddy” Dylan Patel “has spoken. In his review, Patel said SemiAnalysis believes “Meta is the only hyperscaler/neolab on track to be world-class at all three [data, talent and compute] and therefore has the best chance at catching up with Anthropic/OpenAI.”
He also confirmed additional releases are planned, writing, “Indeed, more to come!”
The recent gains reflect growing investor confidence that Meta is accelerating its AI strategy through investments in computing infrastructure, custom silicon and foundation models.
While OpenAI and Anthropic introduced coding-focused AI models earlier, Muse Spark 1.1 signals Meta's intention to compete more aggressively in the rapidly expanding AI coding market.
With multiple AI initiatives announced in recent days and Wall Street maintaining a constructive outlook, Meta shares have continued to outperform as investors bet the company's investments in infrastructure and AI products will support future growth.
The European Union’s tech regulator told Meta on Friday to make big changes to Facebook and Instagram’s “addictive” features — or face steep fines.
The European Commission called out Mark Zuckerberg’s company for several specific features, including “highly personalized recommendations, autoplay and infinite scroll” that allegedly combine to keep users – including vulnerable kids – hooked on social media.
Firms can face fines of up to 6% of their annual revenue if they don’t make changes to comply with the EU’s Digital Services Act, a sweeping regulatory framework that requires Big Tech firms to maintain standards for the content and design of their apps.
Meta CEO Mark Zuckerberg attends the annual Allen and Co. Sun Valley Media and Technology Conference at the Sun Valley Resort in Sun Valley, Idaho, on Thursday. REUTERS In a highly unusual move, the European Commission said Meta needs to nix features like infinite scroll and roll out new “screen time breaks” and tweak its recommendation system so it’s “less engagement oriented.”
“The Commission’s investigation indicates that Meta did not adequately assess the risks of its addictive design on the physical and mental wellbeing of users, including minors and vulnerable adults,” the European Commission said in a press release.
“These features fuel the user’s urge to keep scrolling and shift the brain into ‘autopilot mode’, contributing to unhealthy habits and compulsive use,” the agency added.
Based on Meta’s fiscal 2025 revenue, it’s looking at potential fine of about $12 billion – though the EU’s penalties to date in similar cases have come in far below that level.
EU investigators also found that Meta “disregarded available information about the time minors spend on Instagram or Facebook at night and how the optimization of its different formats – such as reels and stories – could lead to excessive or compulsive use of the services.”
Meta pushed back on the EU’s findings.
“We disagree with these preliminary findings, which don’t accurately take into account the significant steps we’ve taken to protect teens,” a company spokesperson said in a statement.
Zuckerberg’s Meta faces a regulatory crackdown in the US and Europe. REUTERS Meta noted that it has launched a Teen Accounts feature meant to shield kids from social media addiction, including by giving parents the option to block their access to Facebook and Instagram at night.
Zuckerberg’s company has faced intense scrutiny in both Europe and the US over its alleged role in fueling social media addiction and other forms of online harm.
Earlier this year, the European Commission ruled that Meta had failed to stop users under age 13 from accessing its platforms.
The Facebook and Instagram parent also faces a wave of more than 2,400 lawsuits in the US over its addictive features.
It suffered back-to-back court losses earlier this year, one in Los Angeles and another in New Mexico, in what critics hailed as a “Big Tobacco moment” for social media.
Meta (NASDAQ: META | META Price Prediction) and CoreWeave (NASDAQ: CRWV) just delivered Q1 2026 results that expose a brewing conflict. Meta is CoreWeave’s largest backlog customer through a $21 billion commitment signed in March 2026, yet Zuckerberg is simultaneously funneling capex into a sovereign compute stack aimed at making rented GPUs optional.
Ad Cash Fuels Meta. Debt Fuels CoreWeave. Meta printed $56.31 billion in revenue, up 33.08% year over year, with advertising alone contributing $55.024 billion. That cash machine is bankrolling a raised $125 to $145 billion full-year capex plan and the launch of Meta Superintelligence Labs. Zuckerberg framed the quarter bluntly: “We’re on track to deliver personal superintelligence to billions of people.”
CoreWeave grew faster in percentage terms, with revenue of $2.078 billion jumping 111.69%, but the plumbing looks stressed. Capex hit $7.695 billion, free cash flow ran to negative $4.711 billion, and interest expense doubled to $536 million. CEO Michael Intrator leaned on scale, citing a $99.4 billion backlog and a path to more than 8 GW by 2030.
Vertical Empire vs. Rented Muscle Meta owns the ads, the data, the models, and increasingly the silicon-to-server stack. CoreWeave sits, in Intrator’s words, “between the models and the silicon”, a neutral GPU landlord named NVIDIA Exemplar Cloud for GB200 inference. That distinction is what “Meta Compute” threatens.
Lens Meta CoreWeave Core Bet Owning the full AI stack Neutral GPU landlord Q1 Free Cash Flow $12.386 billion -$4.711 billion Key Vulnerability $4.03 billion Reality Labs loss Customer concentration, leverage Reddit chatter captures the anxiety on both sides. One widely shared r/wallstreetbets thread mocked Zuckerberg for “panic bought entire AI chip supply”, while another framed Meta’s cloud pivot as selling “excess AI compute”. If Meta actually monetizes surplus capacity, CoreWeave’s neutral-cloud pitch narrows.
Watch the Backlog and the Buildout Meta shares have slipped 5.54% since the April 29 report, and CoreWeave has cratered 30.38% since May 7. You should watch two things: whether Meta starts routing more inference to its own data centers, and whether CoreWeave’s next quarter narrows the gap between $1.15 billion in depreciation and its operating loss of $144 million. Polymarket traders already give Meta a 76.5% probability of finishing the year above OpenAI’s valuation.
Why I Lean Meta, With a Caveat I keep coming back to the cash. Meta funds its AI ambition out of a $32.226 billion operating cash flow quarter. CoreWeave funds its ambition through an $8.5 billion term loan and $50.814 billion in total liabilities. The asymmetry structurally favors Meta, with analysts still holding 57 buy ratings and zero sells. CoreWeave’s 58.63% implied upside to the $142.29 target hinges on Meta continuing to rent rather than build.
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Tesla (NASDAQ:TSLA | TSLA Price Prediction) just posted one of its cleanest quarters in years, and the market shrugged. Tesla grew Q1 2026 revenue 15.78% year over year to $22.387 billion, expanded automotive gross margin by 490 basis points to 21.1%, and grew free cash flow 117%.
Yet shares are down 12.38% year to date at $394.06. The question I want to answer: can Tesla realistically hit $700 by 2031?
Why Tesla Shares Are Stuck Despite Improving Fundamentals Shares are off 7.35% in the past week and 3.64% over the past month, reflecting a real disconnect between fundamentals and price.
The narrative in recent coverage is unforgiving: one bearish note called Tesla “massively overvalued” with vehicle deliveries below 2 million annually and Chinese competition eroding share.
Meta just overtook Tesla in market cap because Tesla’s decline outpaced Meta’s performance. With a beta of 1.802, this is a volatile stock in a market that punishes any hint of demand softness. Inventory ticked up to 27 days from 22. That is the picture today.
Wall Street Sees Modest Upside. I Think They Are Anchored Too Low Analyst consensus sits at $424.01, with 5 Strong Buy, 18 Buy, 18 Hold, 4 Sell, and 2 Strong Sell ratings. Our internal model puts the base case at $418.24 (6.14% upside) with 90% confidence, a bull case of $482.09, and a bear case of $369.02 over the next year. Bullish sentiment sits at 49%.
My pushback: analysts are modeling Tesla as an automaker with a robotaxi option. If AI5, Optimus, and unsupervised FSD scale as planned, the earnings base in 2031 looks nothing like the annualized $1.64 run rate today. Consensus is too anchored to the near term.
The Path to $700 Per Share by 2031 Reaching $700 from today’s price of $394.06 would require a gain of 77.6%. That is roughly 12% annualized over five years, close to Tesla’s own bull-case annualized return of 10.86%.
Here is the P/E math. With forward EPS of $1.90, a price of $700 implies a forward P/E of 368x. Our base case of $418.24 already implies 217x, meaning the bold target requires 151x of additional multiple expansion at today’s earnings. That number looks absurd until you realize it is the wrong denominator.
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The bull case rests on EPS compression, not multiple expansion. Cybercab, Tesla Semi, and Megapack 3 all hit volume production in 2026. FSD subscriptions grew 51% year over year to 1.28 million. Optimus lines are being installed for 1 million robots per year at Fremont.
Morgan Stanley projects a 30,000-vehicle robotaxi fleet by 2030. If forward EPS compounds toward $10 by 2030, $700 is a 70x multiple on a business growing 25%+. The risk: any material delay in Cybercab or unsupervised FSD scaling collapses the thesis.
Where Tesla Trades Today vs Its Earnings Power At $394.06 against $1.90 forward EPS, Tesla trades at 207x forward earnings. Shares sit between the 52-week high of $498.83 and low of $297.82, closer to the middle.
Over ten years, TSLA has returned 2,626.68%. This stock has repeatedly compressed insane multiples through EPS growth investors thought was impossible.
The Bottom Line on $700 $700 by 2031 requires a 77.6% total gain, or roughly 12% annualized. It is a stretch, but not a fantasy.
Three things need to go right: Cybercab needs to hit meaningful volume by 2028, unsupervised FSD needs regulatory approval in California and Europe, and Optimus needs to become a real revenue line rather than a demo.
A prolonged China share loss or a Cybercab production stumble would derail it. Returns at this level shouldn’t be expected every year, but we’ve outlined the blueprint for how Tesla could reach $700 in 2031.
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Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.
McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.
His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.
A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.
TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.
McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.
Tesla, Inc.'s Q2 deliveries rose 25% YoY, FSD subscriptions 51%, and storage deployments 40.6%; it is obvious that the company will beat consensus financial estimates. TSLA's moat is its autonomy-energy stack: driving data, self-funding FSD, $10.15B of Energy RPO, megablock scale, and, if realized, Optimus labor substitution. Tesla is exceptional, but the stock is priced for domination: $1.5T versus $3.9B in trailing profit. Hold and cap at 5% of NAV; returns require vast earnings growth and a lasting premium.
Tesla’s Q2 delivery print reset the narrative. After two straight years of sales declines, Tesla (NASDAQ:TSLA | TSLA Price Prediction) reported 480,126 deliveries and 451,758 vehicles produced in Q2 2026, blowing past Wall Street expectations. A Tesla-compiled consensus had targeted 406,024 deliveries, while StreetAccount’s average was 406,600. Bloomberg called it a 25% jump from the year-earlier period and the best Q2 performance in company history.
The beat wasn’t a fluke of easy comps. CFRA’s Garrett Nelson was cited by Bloomberg as saying, “This was a much stronger than expected deliveries number, which we think was primarily driven by China and Europe.” Energy storage deployments came in at 13.5 GWh, up over 50% from Q1 2026.
The Market Is Already Looking Past the Cars Despite the beat, Tesla shares fell 7.5% on Thursday July 2, the steepest drop since July 2025, after four straight up days including a roughly 8% advance on Monday. Karobaar Capital CIO Haris Khurshid told Bloomberg: “Once the news actually arrived there just wasn’t as much left to get excited about.”
Shares have since stabilized. TSLA closed at $406.55 on July 9. Prediction markets on Polymarket are pricing a 72.5% probability of an up day on July 10, with month-end targets skewing bullish (69% probability of hitting $435 in July).
Physical AI Is the Real Thesis Now Q1 FY26 already showed the operating turn. Revenue grew 15.78% YoY to $22.39 billion, non-GAAP EPS came in at $0.41 versus $0.3481 estimated, and automotive gross margin expanded to 21.1% from 16.2%. Operating income surged 135.84%. Active FSD subscriptions climbed 51% YoY to 1.28 million.
July 16 is the Final Day to Tap Into the Lithium Boom (sponsor)
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Here’s why you should do the same before their July 16 investment deadline: lithium prices are up 75% this year, with demand projected to grow a staggering 5X by 2040.
With tech that can recover up to 3X more lithium than traditional methods, EnergyX is preparing to unlock up to 15M+ tons. Become a private-stage EnergyX investor before the July 16 deadline.
UBS analyst Joseph Spak raised his TSLA price target to $442 from $364, citing long-term potential in physical AI and robotics. JPMorgan called a potential SpaceX-Tesla merger “strategically coherent”. Polymarket assigns that merger a 24.5% probability by December 31.
This infographic highlights Tesla’s strong Q2 2026 deliveries and Q1 2026 financial turnaround, alongside its strategic focus on physical AI and related market sentiments. It details key performance metrics and future initiatives for the company. What to Watch Into Q2 Earnings Tesla reports Q2 2026 financials after the close Wednesday, July 22, 2026, with the call at 5:30 p.m. Eastern. Capex is the story behind the story: Tesla plans to spend more than $25 billion this year, roughly three times last year’s outlay, on Optimus and autonomous Cybercabs, resulting in expected negative cash flow.
Risks remain real. BYD retook the global EV lead with 557,090 units, Cybertruck demand has disappointed, and SpaceX has bought thousands of Cybertrucks since late last year. Still, deliveries confirm the auto franchise is intact, supplying the missing ingredient for the AI story.
Meet America's Newest $1b Unicorn (Sponsor)A US startup just passed a $1 billion private valuation, joining billion-dollar private companies like OpenAI and ByteDance. Unlike those other unicorns, you can invest in EnergyX right now; but only until July 16.
Over 50,000 people already have, along with global giants like General Motors and POSCO.
Here’s why there’s so much interest: EnergyX’s patented tech can recover up to 3X more lithium than traditional methods. That’s a big deal, as demand for lithium is expected to 5X current production levels by 2040.Become an early-stage EnergyX shareholder before the 7/16 investment deadline.
The Coca-Cola Company (NYSE:KO) is expected to deliver a solid second quarter performance, with analysts at Jefferies and Bank of America highlighting resilient demand, steady volume trends and the company’s ability to navigate ongoing cost and macroeconomic pressures.
Jefferies analysts wrote that they expect Coca-Cola to report stronger organic sales growth and a modest earnings beat for the quarter, forecasting organic sales growth of 3.9%, above the Street estimate of 3.5%.
The firm expects adjusted earnings per share of $0.94, slightly ahead of consensus of $0.93 and representing 8.5% year-over-year growth.
The analysts wrote that Coca-Cola is likely to reiterate its full-year guidance for 4% to 5% organic sales growth and 8% to 9% earnings per share growth, citing strong visibility into the company’s sales and cost outlook for the remainder of 2026.
Jefferies said investor attention will likely focus on any commentary around potential sales and margin impacts from the ongoing Middle East conflict, particularly within the company’s Europe, Middle East and Africa segment, as well as foreign exchange headwinds.
The firm lowered its second quarter organic sales growth estimate from 5.1% to better reflect concentrate sales timing, now modelling 1.6% growth in concentrate sales while expecting unit case volumes to trail by “a couple points” during the period.
For the full year, Jefferies kept its estimates largely unchanged, forecasting 5% organic sales growth, modest gross margin expansion and earnings per share of $3.28, up 9.2% year over year.
The analysts highlighted Coca-Cola’s core soft drinks portfolio and Fairlife contribution as supporting its longer-term growth outlook, writing that positive volumes, resilient earnings growth and improving returns on invested capital reinforce its view that Coca-Cola remains a quality consumer staples name.
Bank of America analysts also maintained a positive outlook ahead of Coca-Cola’s second quarter earnings report, estimating total company unit case volume growth of 2.0% year over year, broadly in line with Visible Alpha consensus of 2.2%.
The analysts wrote that Coca-Cola continues to benefit from resilient demand, limited inflation exposure due to its asset-light business model and balance sheet flexibility.
Bank of America reiterated its ‘Buy’ rating and raised its price objective to $95 from $90, above current levels of about $83, based on a higher valuation multiple of 27 times estimated 2027 earnings per share.
Bank of America’s regional analysis showed improved expectations in Europe, the Middle East and Africa and Asia Pacific offsetting weaker trends in Latin America. The firm lowered its Latin America unit case volume forecast to 1.4% growth from 2.9%, reflecting softer expectations for Mexico, while raising its EMEA estimate to 2.3% growth from 1.3% and Asia Pacific estimate to 2.9% growth from 2.4%, supported by stronger expectations for Japan.
Coca-Cola will report its Q2 earnings on July 28 before the market opens.
Elon Musk became the world’s first trillionaire this June when SpaceX went public. Jeff Bezos watched, and this week he opened Blue Origin to outside investors for the first time in 26 years.
The Deal: $10 Billion at a $130 Billion Valuation According to CNBC’s Andrew Ross Sorkin and reporting in the New York Times, Blue Origin is raising $10 billion in its first-ever external funding round, valuing the company at $130 billion pre-money. Coatue Management is leading with approximately $4 billion, Bezos is contributing $2 billion personally, and the remaining $4 billion is drawing strong institutional demand.
This is the first time in Blue Origin’s 26-year history that it has accepted outside investment. Until now, Bezos funded the company entirely through Amazon stock sales totaling approximately $28 billion.
The 26-Year Rivalry Bezos founded Blue Origin in 2000, two years before Musk founded SpaceX in 2002. For most of that stretch, Bezos self-funded at roughly $1 billion a year while Musk raised outside capital, chased government contracts, and took SpaceX public.
That IPO reset the race. On June 12, 2026, SpaceX listed on NASDAQ as SPCX at $135 per share, the largest IPO in history, raising approximately $85.7 billion at a $1.77 trillion valuation. SpaceX (NASDAQ:SPCX) peaked around $225.64 and made Musk the world’s first trillionaire, with his paper net worth reaching roughly $1.3 trillion. Shares have since cooled to $148.30 as of July 8, still above the IPO price. The offering drew about $350 billion in total investor orders, including roughly $100 billion from retail, and minted thousands of employee millionaires.
Bezos took the cue. In 2024 he said, “I believe Blue Origin will one day be a bigger company than Amazon.”
What Blue Origin Actually Does Blue Origin operates with real customers. New Shepard is its reusable suborbital rocket for research and space tourism. New Glenn is its heavy-lift orbital rocket. The BE-4 engine powers both Blue Origin’s vehicles and United Launch Alliance’s Vulcan Centaur, a piece of critical US launch infrastructure. Blue Moon is a NASA Artemis Human Landing System provider alongside SpaceX. Key customers include Amazon’s Project Kuiper, AST SpaceMobile, NASA, and the US Space Force. The Space Force lists Blue Origin as a prime contractor under the NSSL Phase 3 and RSLP programs.
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Blue Origin plans to spend about $5 billion in 2026 alone, meaning the $10 billion raise covers roughly two years of planned spending.
New Glenn Is Grounded In late May 2026, a New Glenn rocket exploded on its Florida launchpad during a static hot-fire test. Blue Origin has not yet determined the root cause. The blast damaged Cape Canaveral’s Launch Complex 36, the only pad supporting New Glenn, which is being rebuilt. Polymarket traders currently assign only a 13% probability that any New Glenn rocket successfully launches by December 31, 2026, well below CEO Dave Limp’s stated goal.
Amazon: The Wealth Engine Behind the Raise The $2 billion Bezos is personally contributing comes from a still-growing pile. Amazon (NASDAQ:AMZN | AMZN Price Prediction) trades at $243.62, up 11.06% over the past year. Q1 2026 revenue of $181.52 billion grew 16.6% year over year, EPS of $2.78 crushed the $1.73 estimate, and AWS grew 28% to $37.59 billion. Per Amazon’s Q1 filing, CEO Andy Jassy flagged roughly $200 billion in planned 2026 capital expenditures, including AI infrastructure and low earth orbit satellites. Project Kuiper is a direct Blue Origin customer, so Blue Origin’s return to flight matters directly to Amazon shareholders.
The Public-Market Read-Throughs AST SpaceMobile (NASDAQ:ASTS) has contracted New Glenn launches and trades at $74.95, down 18.59% in the past month. Boeing (NYSE:BA) and Lockheed Martin (NYSE:LMT) jointly own United Launch Alliance, whose Vulcan Centaur uses BE-4 engines. Lockheed Martin trades at $527.96, up 10.45% year to date.
$130 Billion Versus $2 Trillion Blue Origin’s valuation is roughly 6.5% of SpaceX’s market cap. Starlink drove most of SpaceX’s $18.67 billion in 2025 revenue as recurring subscription income; Blue Origin has no equivalent. The bull case rests on NASA contracts, the BE-4 as critical infrastructure, and a founder writing another $2 billion check. The bear case is a grounded rocket, a damaged pad, and years of execution before Starlink-scale revenue appears.
Bezos said Blue Origin would one day surpass Amazon. Musk’s IPO proved public markets will value a rocket company near $2 trillion. This raise is the first step toward finding out whether Bezos can prove the same.
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I bought Microsoft again this week, and I will buy it again next week. The stock keeps getting cheaper while the business it represents keeps getting bigger, and that math is the whole confession.
Microsoft (NASDAQ:MSFT | MSFT Price Prediction) is the one hyperscaler willing to show the work on AI monetization. On the Q3 FY26 call, Satya Nadella told investors “Our AI business surpassed $37 billion ARR, up 123%.” That is booked revenue running at that pace right now.
Shares closed at $384.36 on Thursday, down 20.17% year to date and 23.05% over the past twelve months. Meanwhile Q3 FY26 revenue landed at $82.89 billion, up 18.3% YoY, EPS came in at $4.27 for a fourth straight beat, and Azure grew 40%. The panic lives in the ticker. The fundamentals kept working.
Three Numbers That Keep Me Buying First, the backlog. Commercial remaining performance obligations reached $627 billion, up 99% YoY. That is contracted future revenue, nearly doubled in twelve months. When enterprises sign nine-figure checks committing to years of Azure and Copilot consumption, that reads as enterprise AI adoption in the plumbing.
Second, the quality of the earnings underneath it. Operating margin last quarter was 46.3%, return on equity is 34%, debt to equity sits at 0.176, and interest coverage runs at 53.89x. Microsoft guided to roughly $190 billion in calendar 2026 capex and still generated $71.61 billion of free cash flow in FY25. This is a fortress paying for its own construction crew.
Third, the valuation. Trailing P/E is 23, forward P/E is 20, and the stock trades well below its 200-day moving average of $443.59. Getting a 46% operating margin business growing revenue at 18% for a mid-20s multiple is when I stop asking clever questions.
July 16 is the Final Day to Tap Into the Lithium Boom (sponsor)
General Motors, POSCO, and 50,000+ everyday investors have already backed lithium producer EnergyX.
Here’s why you should do the same before their July 16 investment deadline: lithium prices are up 75% this year, with demand projected to grow a staggering 5X by 2040.
With tech that can recover up to 3X more lithium than traditional methods, EnergyX is preparing to unlock up to 15M+ tons. Become a private-stage EnergyX investor before the July 16 deadline.
Why Not Amazon, Alphabet, or Oracle Amazon (NASDAQ:AMZN), Alphabet (NASDAQ:GOOGL), and Oracle (NYSE:ORCL) all compete for the same enterprise AI dollar. My money keeps going to Microsoft because none of them can show me a $627 billion RPO alongside a $37 billion AI run rate growing 123% sitting on top of $217 billion of TTM gross profit. That software annuity is what pays the GPU bill while the competition still argues about theirs.
The Real Risk The $190 billion capex commitment is the thing that could actually hurt me. If enterprise AI monetization slows before the workflows compress, the return on that spend gets ugly. CFO Amy Hood addressed it directly: “We remain confident in the return on these investments given higher demand signals and increasing product usage.”
What keeps my finger on the buy button is what is already on the books. Paid Copilot seats crossed 20 million, up 250% YoY, with Accenture alone at 740,000 seats. Hood said Azure will stay capacity constrained “at least through 2026.” Demand exceeding supply reads as a queue forming.
One post on r/stocks last month put it plainly: “Microsoft is now cheaper than the April 2025 Tariff crash, yet TTM EPS is up 30%. Huge bargain.” The Street agrees on direction if not urgency: 54 buy ratings against three holds and zero sells.
My cost basis keeps improving. My share count keeps growing. Every ninety days Microsoft hands me another receipt. I am buying more.
Meet America's Newest $1b Unicorn (Sponsor)A US startup just passed a $1 billion private valuation, joining billion-dollar private companies like OpenAI and ByteDance. Unlike those other unicorns, you can invest in EnergyX right now; but only until July 16.
Over 50,000 people already have, along with global giants like General Motors and POSCO.
Here’s why there’s so much interest: EnergyX’s patented tech can recover up to 3X more lithium than traditional methods. That’s a big deal, as demand for lithium is expected to 5X current production levels by 2040.Become an early-stage EnergyX shareholder before the 7/16 investment deadline.
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Shares of Advanced Micro Devices (NASDAQ:AMD | AMD Price Prediction) have been on a tear that few retirement portfolios have kept pace with. The stock is up 5.58% over the past week, 14.98% in the past month, 155.29% year to date, and a staggering 295% over the trailing year, closing at $548 and sitting within striking distance of its $584.73 52-week high.
Most of Wall Street holds more moderate views, with the consensus target parked at $512.27. Then came Stifel’s Ruben Roy, who lifted his AMD price target to $635 from $450 while keeping a Buy rating, pointing to a roughly 16% upside from current levels and standing well above the Street average.
But can AMD realistically reach $635 by the end of 2026?
Ruben Roy’s $635 AMD Prediction
Roy’s thesis is specific: AI infrastructure companies remain supply-constrained, not demand-constrained, and recent semiconductor softness looks like a valuation reset rather than a fundamental slowdown. He applied the same framework to Applied Materials ($650), KLA Corp ($270), Lam Research ($425), Ichor ($115), Cohu ($70), and Ceva ($50), framing a full picks-and-shovels AI trade. The data backs him: AMD’s Data Center revenue grew 57% year over year to $5.775 billion in Q1 2026.
Key Drivers of AMD Stock Performance
Hyperscaler lock-in. The Meta partnership deploying up to 6 gigawatts of AMD Instinct GPUs plus OpenAI’s 6-gigawatt commitment create multi-year revenue visibility, exactly the kind of compounding backdrop retirement accounts want. For deeper context on this trade, see our AI infrastructure playbook. Cash flow acceleration. Q1 free cash flow hit $2.566 billion, up 252.96% YoY, funding buybacks and product reinvestment without dilution. Margin expansion. Non-GAAP gross margin climbed to 55% with Q2 guided to 56%, letting earnings compound faster than revenue. What Will It Take for AMD to Reach $635?
With 1,630,601,000 shares outstanding, a $635 print would push market cap into trillion-dollar territory, well above today’s ~$895 billion. Three conditions must hold:
MI450 Series and Helios shipments ramp on schedule in H2 2026 without supply bottlenecks. Q2 revenue lands at or above the $11.2 billion guide, sustaining 46% YoY growth. China export policy remains stable enough to preserve current forecasts. The main risk remains export controls and semiconductor cyclicality. That said, Stifel’s $635 target is grounded in booked backlogs and hyperscaler capacity commitments, and AMD’s setup as a long-duration play on the AI infrastructure buildout remains intact, with the thesis anchored to backlog and capacity data rather than sentiment.
Meet America's Newest $1b Unicorn (Sponsor)A US startup just passed a $1 billion private valuation, joining billion-dollar private companies like OpenAI and ByteDance. Unlike those other unicorns, you can invest in EnergyX right now; but only until July 16.
Over 50,000 people already have, along with global giants like General Motors and POSCO.
Here’s why there’s so much interest: EnergyX’s patented tech can recover up to 3X more lithium than traditional methods. That’s a big deal, as demand for lithium is expected to 5X current production levels by 2040.Become an early-stage EnergyX shareholder before the 7/16 investment deadline.
BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith continues its investigation on behalf of Alibaba Group Holding Ltd. (“Alibaba” or the “Company”) (NYSE: BABA) investors concerning the Company’s possible violations of federal securities laws.
IF YOU ARE AN INVESTOR WHO SUFFERED A LOSS IN ALIBABA GROUP HOLDING LTD. (BABA), CONTACT THE LAW OFFICES OF HOWARD G. SMITH ABOUT POTENTIALLY PURSUING CLAIMS TO RECOVER YOUR LOSS.
Contact the Law Offices of Howard G. Smith to discuss your legal rights by email at [email protected], by telephone at (215) 638-4847 or visit our website at www.howardsmithlaw.com.
What Happened?
On November 14, 2024, Financial Times published an article entitled “White House memo claims Alibaba is helping Chinese military target US.” According to the article, the memo provided declassified intelligence about how Alibaba provides “the People’s Liberation Army with capabilities that the White House believes threaten US security.” Moreover, “Alibaba also provides the Chinese government and PLA with access to customer data that includes IP addresses, WiFi information and payment records, as well as different AI-related service.”
On this news, Alibaba’s shares fell $6.04, or 3.78%, to close at $153.80 per share on November 14, 2025.
Then, on February 13, 2026, the Pentagon added Alibaba to a list of companies aiding the Chinese military before withdrawing the list only minutes later without explanation.
On this news, Alibaba’s stock price fell $3.00, or 1.9%, to close at $155.73 per share on February 13, 2026.
Then, on March 19, 2026, Alibaba reported weaker-than-expected financial results, with revenue missing consensus estimates “primarily due to weaker transaction activities and phase-out of the impact of software service fee implementation.”
On this news, Alibaba’s stock price fell $9.53, or 7.1%, to close at $124.90 per share on March 19, 2026..
Then, on June 11, 2026, Bloomberg News reported that the Beijing branch of State Administration for Market Regulation summoned Alibaba representatives "over what officials said was false advertising during the annual '618' midyear online shopping festival."
On this news, Alibaba’s stock price fell $1.64, or 1.4%, to close at $112.69 per share on June 11, 2026.
Then, on July 1, 2026, the US Department of Justice published a press release stating that Alibaba had “entered a non-prosecution agreement to pay $600 million to resolve the Justice Department’s allegations that they violated the Federal Food, Drug, and Cosmetic Act (FDCA) by failing to prevent merchants from selling and importing illegal pharmaceuticals, controlled substances, listed chemicals, and pill presses into the United States” through its e-commerce platforms.
On this news, Alibaba’s stock price fell $1.85 or 1.9%, to close at $96.14 per share on July 2, 2026, thereby injuring investors further.
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Law Offices of Howard G. Smith continues its investigation on behalf of Alibaba Group Holding Ltd.(âAlibabaâ or the âCompanyâ) (NYSE: [url="]BABA[/url])
NY-headquartered Citigroup has been the perennial laggard of Wall Street for years, burdened by the legacy of the global financial crisis and an unmanageable corporate structure.
However, the narrative has flipped, with a renowned wealth manager, Josh Brown, recently calling Citi “one of the top bank stocks” to own – driven by a profound operational turnaround engineered by CEO Jane Fraser.
By aggressively divesting non-core international consumer operations and removing management layers, the bank has unlocked significant capital efficiency, he told CNBC.
Heading into its Q2 release, Citi shares C are up more than 30% versus its year-to-date low.
Brown’s bullish view on Citi stock is based on a combination of technical momentum and corporate restructuring.
According to him, the catalyst for change has been Fraser’s “shrinking to grow” strategy – exiting over a dozen overseas retail markets to focus on high-margin corporate services.
Brown particularly favours Citigroup’s global treasury and trade solutions franchise, which serves as the fundamental plumbing of international commerce.
Fraser’s visionary leadership has even helped Citi outperform its larger peers, JPMorgan and Bank of America, in the trailing 12 months.
A healthy 1.72% dividend yield makes Citigroup even more attractive to own in 2026.
In the near-term, Citi’s upcoming earnings could prove a tailwind that unlocks the next leg higher.
Expectations are for the investment bank to report $23.4 billion in revenue – up 7.8% on a year-over-year basis – on as much as $2.72 a share of earnings, which will represent 39% growth over last year's figure.
Crucially, options pricing is bullish heading into the company’s quarterly report. The put-to-call ratio on contracts expiring July 17, just days after the print, sits at 0.42 currently.
And the upper price on those contracts is set at about $145, indicating potential for a 4.2% increase in Citi shares from current levels.
Sentiment is structurally supported by the massive $30 billion share buyback program announced at Citi's May Investor Day.
The aggressive compression of shares outstanding is mechanically lifting the EPS trajectory faster than organic growth alone.
Ultimately, Citigroup’s transformation is proving that sometimes a giant must lean down to leap forward.
By shedding the dead weight of its legacy structure and focusing squarely on its core strengths, the bank has successfully shifted market sentiment from skepticism to strong optimism.
If the upcoming Q2 earnings report validates these aggressive restructuring efforts and meets Wall Street's heightened expectations, it will solidify the bank's new trajectory.
For investors who once viewed Citi as a value trap, the combination of technical momentum, a robust buyback program, and disciplined leadership makes the stock a compelling comeback story for the rest of 2026.
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Technology stocks have spent much of the past year battling two competing narratives. First came concerns that artificial intelligence would automate away parts of the software industry. Then investors began questioning whether the AI spending boom itself could last long enough to justify today’s valuations.
The result has been uneven performance across many technology names despite continued investment in AI infrastructure. Yet market sentiment often swings too far in both directions. One of the investing principles championed by legendary Fidelity Magellan manager Peter Lynch now suggests the pendulum may be starting to swing back in favor of technology stocks.
Peter Lynch’s Favorite Signal Is Flashing Green Peter Lynch remains one of Wall Street’s investing icons after generating a 29.2% average annual return during his 14-year run managing Fidelity Magellan between 1977 and 1990. His investing classic, One Up on Wall Street, showed everyday investors they could outperform professionals by focusing on businesses they understood and by paying attention to a handful of reliable signals.
One of his best-known observations concerned insider buying.
“Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.”
That idea has taken on renewed importance today.
According to data compiled by SentimenTrader and highlighted in a recent Seeking Alpha article, corporate insiders across the technology sector are purchasing shares of their own companies on the open market at the fastest pace in roughly 15 years. Importantly, these are open-market purchases reported through SEC Form 4 filings — not stock option exercises, restricted stock grants, or compensation awards.
That distinction matters. When executives receive stock as part of their compensation package, they aren’t making an investment decision. Open-market purchases require them to spend their own cash under the same market conditions as every other investor. In short, management is putting real money behind its conviction.
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But it is important to keep that in perspective. Insider purchases are valuable because executives understand their businesses better than outside investors. They know product pipelines, customer demand, hiring trends, and capital allocation plans before quarterly earnings reveal the full picture. Yet insiders can also be wrong. Competitive pressures, slowing revenue growth, or deteriorating industry conditions can overwhelm even management’s confidence.
Lynch never suggested blindly buying every stock after an insider purchase. Instead, he viewed insider buying as confirmation that deserved further investigation.
Just as notable might be the tech executives not buying their stock, despite the pullback. Insiders at six of the Magnificent 7 stocks have sold more shares than they bought, and those at four of them — Amazon (NASDAQ:AMZN | AMZN Price Prediction), Meta Platforms (NASDAQ:META), Microsoft (NASDAQ:MSFT), and Nvidia (NASDAQ:NVDA) — haven’t purchased any shares in over two years, despite the pullback in their stock prices.
Smart investors should still examine revenue growth, earnings quality, free cash flow generation, valuation multiples, competitive positioning, and balance sheet strength before committing capital. Comparing those metrics against industry peers remains just as important as following insider transactions.
Key Takeaway In short, Peter Lynch’s famous insider-buying principle is providing one encouraging signal for technology investors. Executives are voluntarily investing their own money through open-market purchases at a pace not seen in about 15 years, suggesting they believe current valuations underestimate future prospects. That does not guarantee technology stocks are about to rally, nor does it make every company an automatic buy. But it gives retail investors a valuable starting point for deeper due diligence.
When the people running these businesses begin buying alongside shareholders instead of simply collecting stock awards, history suggests they’re sending a signal worth paying attention to.
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Nvidia stock NVDA traded higher on Friday as investors looked past reports that one of the company's largest customers is stepping up development of its own artificial intelligence processors.
The stock was up about 2.3% at around $207 at the time of writing after trading lower in premarket activity.
The latest development came after Reuters reported that Meta Platforms plans to begin manufacturing a new in-house artificial intelligence chip from September, citing an internal company memo.
The processor, code-named "Iris," forms part of Meta's multi-generation Meta Training and Inference Accelerators (MTIA) program and is intended to support the artificial intelligence systems powering Facebook and Instagram.
According to Reuters, testing of the chip took six weeks and uncovered no major issues, marking progress for an initiative that has faced challenges since it began more than five years ago.
The report said Meta is working with Broadcom on the chip's design, while Taiwan Semiconductor Manufacturing Co. will manufacture the processors.
Meta's goal is to lower its computing costs and reduce dependence on third-party chip suppliers by using silicon tailored to its own workloads.
However, Reuters reported that the new chip is intended to augment, rather than replace, the large volumes of graphics processing units Meta continues to purchase from Nvidia and Advanced Micro Devices.
Meta has previously introduced several generations of MTIA chips and has said they could eventually replace GPUs in some servers while expanding into AI training workloads.
To date, custom chips have primarily been used for inference, the process of generating responses from trained AI models.
The report represents another example of a broader trend across the artificial intelligence industry, where major technology companies are increasingly investing in custom silicon to optimize performance and reduce infrastructure costs.
While those efforts have raised concerns about Nvidia's long-term market share, custom processors have so far complemented rather than displaced the company's graphics processors in many large-scale AI deployments.
Nvidia continues to dominate the market for AI accelerators, particularly for training frontier models, even as hyperscalers pursue greater control over portions of their computing infrastructure.
Wall Street remains constructiveMorgan Stanley reiterated its Overweight rating and $288 price target on Nvidia following the company's recent non-deal roadshow with senior executives.
The investment bank said Nvidia conveyed confidence in an accelerating and increasingly diversified growth story that could appeal to both growth- and value-oriented investors.
Morgan Stanley also maintained Nvidia as its top pick within the semiconductor sector.
Earlier this week, TD Cowen reaffirmed its Buy rating and $275 price target after meeting with Chief Executive Officer Jensen Huang, Chief Financial Officer Colette Kress, and Head of Investor Relations Toshiya Hari.
According to the brokerage, Nvidia executives said demand for AI computing infrastructure remains strong, pointing to constrained compute availability, rising rental prices for legacy GPUs, expanding enterprise AI adoption, and cloud agreements signed at premium pricing.
Nvidia (NVDA +3.56%) has shed an astounding $800 billion in market cap since it hit its all-time high in mid-May. The company, while still worth close to $5 trillion, is back down to valuation levels relative to trailing earnings that it hasn't seen since 2019. At one point during the decline, Nvidia was trading at about 18 times forward earnings, but the price has rebounded slightly since then. As of the close Thursday, its forward P/E was 22.6 -- unusually cheap for the chipmaker.
Investors should take advantage of the dip. The sell-off more closely resembles a sector rotation than a red-flag warning about Nvidia's business, as other semiconductor companies also were hit hard recently.
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There's a lot to love about Nvidia right now. Management's decision to substantially increase the company's dividend, paired with the announcement of an additional $80 billion buyback program, suggests Nvidia believes that rewarding shareholders with income, not just growth, is important at this stage.
Nvidia maintains market-share dominance, holding 97% of the server graphics processing unit (GPU) market for artificial intelligence chips as of the end of 2025, according to Bloomberg Intelligence. The company reported record revenue of $81.6 billion just this past quarter, an 85% increase from the prior-year period. Data center revenue jumped 92%. This is not a company on the decline.
Image source: The Motley Fool.
Competition and pressure on margins from rising costs are concerns, but those issues are not unique to Nvidia.
Though the stock has taken a precipitous fall from its all-time high over the past month, Nvidia's business fundamentals don't just remain intact -- they are continuing to improve. Investors should not panic, but should instead view this dip as a chance to buy a "Magnificent Seven" stock at a great price for a promising long haul.
Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) told investors to expect $91.0 billion in revenue for the second quarter of fiscal 2027, plus or minus 2%. That figure is guidance, not a reported result, and it excludes any Data Center compute revenue from China.
Now, this figure is significantly higher than the $81.61 billion the company just delivered in Q1 FY27, which itself was up 85.2% year over year and topped consensus expectations. For a company already generating roughly a quarter-trillion dollars of trailing revenue, the guide implies sequential acceleration on a base that most industries could not reach in a decade.
What It Means Break the Q1 result apart and the story sharpens. Data Center revenue landed at $75.25 billion, up 92% year over year. Inside that, Data Center Networking pulled in $14.8 billion, up 199%, as InfiniBand, NVLink, and Spectrum-X demand tripled. Non-GAAP gross margin printed at 75.0%, and net income reached $58.32 billion, up 210.63%. Perhaps most importantly, free cash flow (what the market is growing increasingly concerned with) came in at $48.55 billion. The company has now beaten consensus EPS four quarters in a row, most recently with $1.87 versus a $1.77 estimate.
This $91 billion guide carries additional weight because it is stated to exclude Chinese Data Center compute revenue. NVIDIA shipped no H20 units to China in the quarter, versus $4.6 billion in the year-ago period. Whatever comes back from that market is upside optionality on top of the guide, not baked in. Supporting that outlook is a stated $119.0 billion in total supply-related commitments and $30.0 billion in multi-year cloud service commitments.
Market Reaction NVDA stock closed at $194.83 on July 2, 2026. Over the past week, shares are down 0.46%, and over the past month down 12.46%, moving from $222.57 on June 2 to the current level. Year to date, the stock is up 4.59%, and one-year performance stands at up 24.06%. On the day the Q1 FY27 report hit, May 20, 2026, shares were at $221.54.
Bull Case The bull case for Nvidia starts with acceleration on a base that was already very large. The AI giant grew its revenue in Q1 by 85.2%, and the Q2 guide points higher in absolute dollars. Networking growth of 199% shows the buildout extending beyond GPUs into the interconnect fabric that ties them together. These numbers were driven by an absolutely incredible gross margin of 75% with Q2 guidance holding at 75% plus or minus 50 basis points, given strong pricing power as Blackwell ramps.
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Capital return has changed investors’ perspective on NVDA stock, in my view. The company’s board approved a new $80.0 billion share repurchase authorization in May 2026 on top of $38.5 billion remaining under the prior program, with roughly $20.0 billion was returned in Q1 alone. Nvidia’s quarterly dividend was raised from $0.01 to $0.25 per share, declared May 18, 2026 and paid June 26, 2026. Analyst consensus target price sits at $301.62, with 10 Strong Buy and 48 Buy ratings against 2 Hold and 1 Sell. Forward P/E is 23, which is 30 on a trailing basis.
CEO Jensen Huang framed the setup on the earnings call: “The buildout of AI factories, the largest infrastructure expansion in human history, is accelerating at extraordinary speed.” He added that “Agentic AI has arrived, doing productive work, generating real value and scaling rapidly across companies and industries.” Partnerships announced or expanded in the quarter include Google Cloud on Vera Rubin A5X instances, Marvell on NVLink Fusion, Coherent, Corning, and Lumentum on optics, plus automotive tie-ins with Hyundai, Kia, Uber, BYD, Geely, and Nissan, and telecom collaboration with T-Mobile and Nokia on AI-RAN and 6G.
Risks aren’t to be ignored, however. Nvidia’s Q2 guide already excludes China Data Center compute, a substantial Q2 cash tax increase is expected, consumer PC demand is softer, and third-party manufacturing reliance concentrates supply chain risk. None of those items alter the anchor, that the company is guiding to $91.0 billion in a single quarter, with China stripped out.
Bottom Line For long-term holders, the $91 billion guide is the number that keeps the AI infrastructure thesis intact on hard math rather than narrative. Data Center growth of 92%, Networking growth of 199%, gross margin at 75.0%, and a new $80.0 billion buyback authorization together describe a business compounding at scale while returning cash.
The next reported result will test whether that guide holds. Until then, the number on the page is the story.
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Key Takeaways 3M's Consumer segment adjusted organic revenues fell 1.3% year over year in first-quarter 2026.MMM faces weak retail, housing, packaging and expression demand amid muted consumer spending.3M is emphasizing cost optimization, portfolio efficiency and innovation to navigate soft demand. 3M Company (MMM - Free Report) has been experiencing persistent weakness in its Consumer segment. The segment’s adjusted organic revenues declined 1.3% year over year in the first quarter of 2026. Muted consumer discretionary spending has continued to weigh on consumer retail markets, creating a significant headwind over the past several quarters.
Consumer-focused businesses globally are facing a challenging macroeconomic environment due to inflationary pressure, muted discretionary spending and changing buying patterns. These headwinds have affected demand for everyday household and personal-use products, limiting growth opportunities for the company’s consumer operations. Weakness in housing-related activity has also weighed on the home improvement business, an important revenue contributor for the segment. At the same time, demand for the packaging and expression products also remained low in the first quarter.
Consumer-focused businesses worldwide continue to operate in a challenging macroeconomic environment due to inflationary pressures, lower discretionary spending and changing purchasing behavior. These factors have weighed on demand for household and personal-use products, limiting growth prospects for the company's consumer operations. Weakness in housing-related activity has also continued to pressure the home improvement business, which is a key revenue contributor for the segment. Also, demand for packaging and expression products remained muted in the first quarter.
Despite near-term challenges, 3M is benefiting from a broad portfolio of products and established brands across multiple consumer categories. The company is focusing on operational efficiency, portfolio optimization and innovation to navigate soft demand conditions while protecting margins. A gradual recovery in consumer spending, coupled with easing macroeconomic pressures, could help improve demand across its consumer-facing businesses.
While soft demand for consumer products remains a near-term headwind, 3M's focus on cost optimization and its diversified business portfolio are expected to support growth.
Segmental Snapshot of MMM’s PeersAmong 3M’s major peers, The Procter & Gamble Company’s (PG - Free Report) Fabric & Home Care segment generated revenues of $7.4 billion in the third quarter of fiscal 2026. The Procter & Gamble segment’s results were up 7% year over year. The Procter & Gamble segment also delivered 3% organic sales growth in the quarter.
MMM’s another peer, Avery Dennison Corporation’s (AVY - Free Report) Materials Group reported sales of $1.65 billion in the first quarter of 2026, up 11.4% year over year. Avery Dennison’s segment sales rose 3.6%, excluding currency, and 1.9% organically. Avery Dennison’s segment’s mid-single-digit volume/mix growth was partly offset by deflation-related price reductions.
The Zacks Rundown for MMMShares of 3M have gained 1.6% in the past three months against the industry’s decrease of 26%.
Image Source: Zacks Investment Research
From a valuation standpoint, 3M is trading at a forward price-to-earnings ratio of 17.11X, above the industry average of 11.83X. MMM carries a Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MMM’s earnings for 2026 has increased 0.3% in the past 60 days.
Image Source: Zacks Investment Research
MMM stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Image Credits:Chesnot / Getty Images As Netflix searches for new ways to keep viewers engaged amid signs of slowing engagement, the streaming giant appears to be exploring yet another avenue: always-on live TV channels.
According to The Wall Street Journal, Netflix is considering launching live channels that continuously stream content, giving subscribers something to tune into 24/7. Rather than committing to binge-worthy dramas like “Avatar: The Last Airbender” or the newest thriller “I Will Find You,” subscribers could leave a channel running in the background for hours of entertainment.
This move would put Netflix in more direct competition with free, ad-supported streaming services such as Pluto TV and Tubi. It could also provide a meaningful boost to Netflix’s ad business, since live programming typically doesn’t allow viewers to skip commercials.
The WSJ also reports that Netflix is exploring bundles, similar to offerings from Apple and Amazon. According to people familiar with the matter, Peacock is among the services being discussed as a potential partner.
Netflix didn’t immediately respond to our request for comment.
The reported plans come as Netflix has made other moves to increase viewer engagement. Recently, the company has experimented with short-form video, video podcasts, and a new gaming app for kids to drive viewership.
Earlier this week, Bloomberg reported that the company has become increasingly concerned about audience declines between the first and second seasons of many of its original shows, raising questions about its ability to sustain long-term hits. Plus, Netflix’s share of total TV viewing has also slipped. According to Nielsen, the streamer accounted for 7.8% of TV viewing in April.
Additionally, Variety reported on Friday that Netflix is in talks to buy Letterboxd, the popular social platform for movie fans.
Netflix may be preparing to make its biggest strategic departure from traditional streaming yet. A July 10 CNBC Executive Edge segment zeroed in on a Wall Street Journal report that Netflix (NASDAQ:NFLX | NFLX Price Prediction) is exploring a deeper push into live television and third-party streaming distribution that could eventually allow subscribers to purchase competing services through its platform.
The strategy could increase the amount of time subscribers spend inside Netflix, but it would also move the company beyond the controlled live events that have defined its approach so far. The CNBC hosts framed the move as a possible solution to weak engagement but questioned whether changing distribution would fix the underlying problem of the shows themselves.
“It’s Always About Content” (Netflix May Have a Content Problem) Summarizing the WSJ article, one host said: “Netflix is looking to get into live TV… exploring adding live streaming channels to its service, or potentially allowing subscribers to use its platform to buy access to other streaming services like NBCUniversal’s Peacock.” The panel noted that “Netflix recently partnered with France’s TF1 to allow users in that country to watch some live content, including news. Other similar overseas deals could be a next step.”
The hosts contrasted that with Netflix’s earlier posture: “Netflix has been applauded for having a live TV strategy that was unscripted but were events that they created. They weren’t bidding against other parties for the rights… They would stage fights… things that were under their control.” Bidding for third-party live rights, in the hosts’ view, is a different game than staging your own events.
The hosts felt like Netflix might have underlying issues to address with its content: “I’ve been complaining about what’s on Netflix… there’s a lot of stuff I’m not engaged with. And I’ve tried to watch a dozen of their dramas… It’s always about content,” one host said, adding, “The content is king and it’s really hard to do. And Netflix, for me, I find myself on Paramount a lot more.” This is obviously one person’s perspective, but it’s worth keeping in mind the big role that content plays in Netflix’s business.
Top Netflix Shows Are Reportedly Losing 30-70% of Viewers The hosts flagged that Netflix executives are concerned about engagement metrics measuring how long users watch particular programs. A widely discussed r/wallstreetbets thread this week, with 14,936 upvotes and 4,572 comments, cited reporting that Netflix’s top shows have been losing 30-70% of their audience between seasons 1 and 2, with executives trying to diagnose why.
July 16 is the Final Day to Tap Into the Lithium Boom (sponsor)
General Motors, POSCO, and 50,000+ everyday investors have already backed lithium producer EnergyX.
Here’s why you should do the same before their July 16 investment deadline: lithium prices are up 75% this year, with demand projected to grow a staggering 5X by 2040.
With tech that can recover up to 3X more lithium than traditional methods, EnergyX is preparing to unlock up to 15M+ tons. Become a private-stage EnergyX investor before the July 16 deadline.
Adding live channels or reselling Peacock could lift session time, but it will not repair the underlying retention issue.
Netflix’s Business Is Growing Even as Its Stock Slides Netflix’s market cap sits at roughly $317.8 billion, with shares closing around $75.47 on July 9, 2026. The stock is down about 41% over the past year and roughly 20% year to date.
The business, meanwhile, has kept growing. Q1 2026 revenue came in at $12.3 billion, up 16% year over year, with a 32.3% operating margin. Netflix reaffirmed full-year 2026 revenue guidance of $50.7 billion to $51.7 billion and raised free cash flow guidance to roughly $12.5 billion, aided by an after-tax termination fee from the abandoned Warner Bros. Discovery deal. Netflix’s Q2 results are expected on July 16.
Can Live TV Fix Netflix, or Is It a Costly Retreat? Netflix has already proved that controlled live programming can attract enormous audiences. The World Baseball Classic became its most-watched program ever in Japan, while the Canelo-Crawford fight drew more than 41 million viewers. But always-on channels, third-party streaming bundles, and multibillion-dollar sports rights would represent a fundamentally different strategy.
If live television and third-party distribution deepen daily engagement, Netflix could become an even more powerful entertainment platform. If viewers are leaving because its scripted originals are not holding their attention, however, expensive rights and rival-service bundles may treat the symptom without solving the problem. Investors will get an insight into management’s strategy on July 16 when management reports Q2 earnings.
Meet America's Newest $1b Unicorn (Sponsor)A US startup just passed a $1 billion private valuation, joining billion-dollar private companies like OpenAI and ByteDance. Unlike those other unicorns, you can invest in EnergyX right now; but only until July 16.
Over 50,000 people already have, along with global giants like General Motors and POSCO.
Here’s why there’s so much interest: EnergyX’s patented tech can recover up to 3X more lithium than traditional methods. That’s a big deal, as demand for lithium is expected to 5X current production levels by 2040.Become an early-stage EnergyX shareholder before the 7/16 investment deadline.
Netflix (NFLX) is upgraded to Buy as valuation has reset and competitive risks have diminished. NFLX demonstrated capital discipline by walking away from the WBD deal, receiving $2.8B and expanding its repurchase authorization to $25B. Q2 margin is guided as a peak in content amortization; ad revenue and full-year guidance are key near-term catalysts.
