Track market-moving stories before they get noisy

Artificial intelligence is creating some of the biggest winners on Wall Street. Investors have poured into chipmakers, cloud providers, and memory players racing to capitalize on the AI boom. But another group of businesses is quietly benefiting from this trend: cybersecurity companies.

After all, every new AI tool creates a new security challenge. As businesses rush to adopt AI, they must also protect their systems, data, and applications from new threats. That dynamic could create a significant opportunity for SentinelOne (S 0.43%), a cybersecurity company that sits at the intersection of two powerful trends: AI and security.

Image source: Getty Images.

AI is creating a new cybersecurity race Technology shifts often create new security challenges. The rise of the internet gave birth to modern cybersecurity. The move to cloud computing created an entirely new market for cloud security. Now AI is doing the same thing. Businesses are embedding AI into customer service, software development, data analysis, and daily operations. Some companies are even deploying AI agents that can perform tasks with limited human involvement.

These tools can improve productivity, but they also create new risks. Sensitive information can flow into AI systems. Hackers can target AI applications. Automated agents can gain access to critical systems and become attractive targets for cybercriminals. In other words, the more businesses rely on AI, the more important security becomes. That's where SentinelOne comes in.

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SentinelOne is more than an antivirus company Many investors still think of SentinelOne as an endpoint security company that protects laptops and servers from cyberattacks. But that's just part of the story. Today, SentinelOne offers a broader cybersecurity platform called Singularity. The platform helps organizations protect devices, cloud environments, user identities, data, and AI-powered applications from cyber threats.

In other words, the company is trying to become a one-stop security platform rather than a single-product vendor. That's an important distinction because platform companies often enjoy larger opportunities than point-solution providers. Once customers adopt a platform, they tend to purchase additional products over time, making those relationships more valuable.

That leads directly to SentinelOne's business model.

A business model built to grow with customers SentinelOne generates most of its revenue through subscriptions. Customers pay recurring fees to use the company's cybersecurity platform. That creates predictable revenue and long-term customer relationships. In the latest quarter, annualized recurring revenue reached $1.2 billion, up 23% year over year.

The real opportunity goes beyond winning a customer once. A company might initially adopt SentinelOne to protect employee devices. Later, that same customer may add cloud security, identity protection, threat detection, data analytics, and other services.

As customers adopt more products, SentinelOne increases revenue without needing to find entirely new customers. Many of the most successful software companies have used this playbook. They land a customer with one product and expand the relationship over many years.

For SentinelOne, that strategy could become increasingly valuable as cybersecurity needs grow more complex.

SentinelOne is also using AI to improve cybersecurity The AI opportunity doesn't stop at protecting AI systems. SentinelOne is also using AI to make cybersecurity easier and more effective. Traditionally, security teams needed highly trained analysts to investigate threats and respond to attacks. That process often required navigating complex tools and analyzing massive amounts of data.

SentinelOne's Purple AI platform aims to simplify that work. Instead of searching through dashboards and databases, security teams can ask questions in plain language and receive actionable insights. The technology can help automate investigations, accelerate responses, and improve productivity.

In many ways, SentinelOne is benefiting from AI on both sides of the equation. AI is creating new security challenges and helping solve them.

What does it mean for investors? Most investors think of AI investment opportunities as just being about chips, data centers, and software applications. But AI also needs security. As businesses deploy more AI tools, they will likely spend more money protecting the systems, data, and applications that power them.

SentinelOne's subscription-based business model, expanding cybersecurity platform, and growing AI capabilities position it to benefit from that trend. That may be the reason so many investors are talking about SentinelOne right now.

Growth for artificial intelligence (AI) cloud infrastructure company Nebius Group (NBIS 6.09%) has exploded over the last year, and investors have poured into the stock. A nearly 20% surge in shares in June reversed course in July, though, and investors should continue to expect volatility of this kind.

Nebius stock jumped 19.5% in June, according to data provided by S&P Global Market Intelligence. But it crashed nearly the same amount in the first trading week of July. Here's what investors need to know, and what they should expect ahead.

Image source: Nebius Group.

Building out capacity Investors have been attracted to Nebius stock in droves because of its spectacular growth rates. In its May earnings report, the company said it was again raising its guidance for contracted power capacity to support its data centers, which provide cloud computing infrastructure for AI model development and growth.

That guidance has soared since last August, from at least 1 gigawatt (GW) to over 4 GW. In May, Nebius said it has already secured as much as 1.2 GW of power and land for an AI factory at a new site in Pennsylvania.

Investors continued to boost Nebius stock when it announced it would also partner with fuel cell maker Bloom Energy to install additional power capacity for its data center build-out.

What to make of Nebius stock Revenue has grown stunningly alongside Nebius' data center expansion.

From sales of just $105 million in Q2 a year ago, the company reached an annual revenue run rate of $1.25 billion by the fourth quarter. That remarkable growth rate continues to accelerate. Management now anticipates exceeding $3 billion in revenue for 2026, concluding the year at a rate that could more than double once again in 2027.

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But the stock movement has also anticipated that growth, with shares rising more than 150% year to date and more than quadrupling over the last 12 months. It has reached a market cap of about $55 billion, which puts it at a lofty valuation even for its expected 2027 sales.

While demand is extremely strong, competitors like CoreWeave are also in the space. Any sign of a slowdown in spending for cloud capacity will likely hit shares of companies like Nebius and CoreWeave disproportionately compared to the tech sector as a whole.

That makes it a good candidate for investing over time. Long-term investors can purchase more as the stock corrects along the way. There's a good chance that better opportunities will come with the volatility.

Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bloom Energy. The Motley Fool has a disclosure policy.

The dust has settled, and Space Exploration Technologies (SPCX +2.69%), or SpaceX, has been trading on public markets for a few weeks, with a market value between $1.5 trillion and $2.5 trillion. As of this writing on June 30, the space stock and artificial intelligence (AI) upstart now has a market cap of $2.25 trillion, making it the seventh-most valuable company in the world.

But if you look at the underlying financials, SpaceX is actually much smaller than the other megacap technology companies. Does that make the stock officially overvalued?

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Huge growth opportunity ahead of it SpaceX's total revenue was just $18.7 billion in 2026, which is significantly below the hundreds of billions in revenue that other trillion-dollar market cap stocks like Alphabet, Microsoft, and Apple generate annually. It generates $4 billion in launch revenue, $11.4 billion from its Starlink satellite internet business, and $3.2 billion in AI services revenue.

However, there is significant promise for these businesses to grow in the years ahead. Starlink revenue grew 50% year over year in 2025, and it has a large addressable market to tackle, along with promised innovations to deliver direct-to-device connectivity in the future. AI revenue should begin to grow rapidly in 2026, with new contracts totaling $27.8 billion in annual revenue for data center services. It just acquired Cursor to compete in the AI coding race, which should boost revenue as well.

Lastly, the massive Starship rocket is getting closer to commercialization, which will not only boost launch revenues but also increase capacity to bring Starlink satellites into orbit.

Image source: Getty Images.

Risks of relying on AI and satellite internet While there is a massive opportunity in satellite internet and AI services, SpaceX will be operating in highly competitive fields in the years to come. AI data centers are being aggressively built by many of the megacap technology providers, including a current SpaceX customer, Alphabet. These contracts can be cut at any point with 90 days' notice, meaning if the overbuilding of data centers eventually occurs, SpaceX's AI revenue may be in for a world of hurt.

With satellite internet, SpaceX is the dominant player today but has many competitors nipping at its heels, such as Amazon, Rocket Lab, and AST SpaceMobile, that are investing billions to deploy their own satellite internet constellations. A long-term addressable market in the hundreds of billions will likely not all flow to SpaceX, despite its current lead in the race.

There is no doubt that SpaceX is tackling massive markets in satellite internet and AI; it's just that there is massive competition for a business that generated under $20 billion in revenue in 2025. The company now has a rock-solid balance sheet after the largest IPO in history, which will be necessary to aggressively spend to win in these new markets, with $9 billion in cash burned in Q1 alone.

SpaceX's consolidated business is also not high margin, with a total gross margin just above 50% in 2025 and a $2.5 billion operating loss. This is the largest stock by market cap in history that is not profitable. Even if you just value SpaceX on its revenue, the stock currently trades at a price-to-sales ratio (P/S) above 100, which is one of the most extreme revenue multiples in market history. The stock is valued as if it were already doing hundreds of billions in revenue, when that may not happen for a decade or longer.

Unless SpaceX can actually achieve its dream of the space economy and AI within a few years, the stock looks wildly overvalued at a market cap of $2.25 trillion.

Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends AST SpaceMobile, Alphabet, Amazon, Apple, Microsoft, and Rocket Lab. The Motley Fool has a disclosure policy.

Rainbow Rare Earths Ltd (LSE:RBW, OTC:RBWRF, FRA:RR1) says it has significantly simplified the process flow sheet for its phosphogypsum rare earths recovery project, a move expected to reduce costs and improve plant operability ahead of the definitive feasibility study.

Chief executive George Bennett and technical director Dave Dodd joined Proactive to discuss the technical breakthroughs behind the redesign, the remaining DFS work and the project's potential production of high-purity NdPr and heavy rare earth products.

Watch the full interview below and read the transcript underneath.

Proactive: I'm joined by Rainbow Rare Earths Ltd (LSE:RBW, OTC:RBWRF) CEO George Bennett as well as technical director Dave Dodd. Gents, very good to speak with you. George, looking very smart today, are you going somewhere?

George Bennett: Yes, I've been invited by the U.S. Embassy in Pretoria to celebrate the Fourth of July with them. Rainbow has a very close relationship with the U.S. government, hence my invitation by the embassy in Pretoria today.

Proactive: David, turning to today's news, you've simplified the flow sheet quite dramatically. What's the biggest technical breakthrough that gave you the confidence to do that?

Dave Dodd: The breakthrough came from understanding how to control the purity of the leach solution from phosphogypsum, particularly the fluorine present in the phosphogypsum stacks. Previously we had a weak acid leach and fluoride recovery circuit ahead of the rare earth leach, but we've established that we can control fluorine simply by adding silica, which complexes with the fluorine so it doesn't affect the rare earth leach. That has allowed us to eliminate a significant part of the process.

We've also introduced continuous ion exchange (CIX) for the primary recovery of rare earths from the leach solution. This replaces a much more complicated process involving fluorine precipitation, acid baking and water leaching. Those two changes have greatly simplified our flow sheet.

Proactive: George, from an investor's perspective, what does the simpler flow sheet actually mean? Lower costs, lower risk or a faster route to production?

George Bennett: The first two are the key benefits. We believe these optimisations have reduced both capital expenditure and operating costs, helping to keep capital within the figures previously communicated to the market in our December 2024 update.

Just as importantly, the plant is now much more operable from both an HSE and operational perspective. Rare earth processing plants are well known for their complexity, and there are very few operating in the Western world. We believe these optimisations have simplified our flow sheet, improving operability, reducing execution risk and helping ensure we achieve both the planned throughput and targeted rare earth recovery from the phosphogypsum.

Proactive: Dave, the project is recovering rare earths from a waste product rather than mining fresh ore. What have been the biggest technical challenges in making that work at commercial scale?

Dave Dodd: One of the keys has been developing a process that uses standard, proven industry technologies, even though we've combined them in a different way. That makes scaling the process relatively straightforward.

The biggest technical challenges have been understanding acid behaviour during the leaching process and managing impurities, particularly calcium. Because we're processing gypsum, which is calcium sulphate, the system is always calcium saturated. Understanding and controlling calcium behaviour has been critical, and we believe we've now developed a strong understanding of those aspects.

Proactive: George, with around three-quarters of the process now locked in, what's left to prove before investors can look forward to the completed DFS?

George Bennett: There's nothing fundamentally left to prove because we're using standard downstream solvent extraction. The remaining work focuses on optimising the interface between the eluate from the Continuous Ion Exchange circuit and the solvent extraction circuit, ensuring impurity levels are exactly where they need to be.

The solvent extraction circuit will produce separated NdPr at more than 99.5% purity, together with our heavy rare earth concentrate. That product contains approximately 60 tonnes per annum of dysprosium, 20 tonnes per annum of terbium and around 130 tonnes per annum of yttrium, all of which are highly sought-after heavy rare earths.

Proactive: George, David, thanks for the update. We look forward to hearing more about your progress. George, enjoy the Fourth of July celebrations.

Trillion Energy International Inc. (CSE:TCF, OTCQB:TRLEF, FRA:Z620) earlier this week announced the completion of technical field scouting work on its M47 exploration licence in Türkiye, advancing preparations for future seismic acquisition and potential oil field development.

Speaking with Proactive, President Scott Lower said the field programme represented an important step in determining the optimal placement of seismic survey lines, which will ultimately guide future drilling locations across the licence.

Lower said the company envisaged substantial long-term development across the block, noting that the objective was to position the project for significant drilling activity over the coming years. He explained that careful seismic planning was essential because drilling represented the largest capital investment in the project and accurate well placement could materially improve the probability of targeting productive reservoirs.

He said the geological complexity of the region, which includes anticlines, folds and thrust structures, made high-quality seismic interpretation particularly important. The latest field work builds upon historical gravity surveys and three earlier seismic programmes while refining areas where previous interpretations remained uncertain.

Lower highlighted the northern portion of the licence as the company's immediate area of interest, stating that it already contains a proven oil discovery. He said 27 million barrels of recoverable oil have been discovered net to Trillion Energy and noted that development planning for the area contemplates more than 50 wells over the next one to two years.

According to Lower, this northern development area is expected to provide the company's initial production as development progresses. Following completion of the geological model, Trillion Energy intends to identify drilling locations designed to maximise reservoir potential.

He added that the planned wells are expected to produce between 500 and 1,000 barrels of oil per day, providing the foundation for future operating cash flow once development commences.

Looking ahead, Lower said the next catalysts for investors include completion of geological modelling, selection of final drilling locations, advancement of the seismic programme and progression toward field development. He also identified first sustainable production as a key milestone as the company works to convert its discovered resource into commercial output.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (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.

United Parcel Service (UPS +1.02%) is deeply unloved on Wall Street, with the stock down 50% from its 2022 high. To be fair, the parcel delivery company has been going through a massive business overhaul, and its quarterly earnings results have been pretty tough to read. But it is important to keep in mind what the company is doing and why. The announcement of a $48 million investment in temperature-controlled facilities highlights something big.

UPS is updating its business approach To simplify this industrial giant's turnaround effort, it is basically trying to modernize. That requires spending money to update technology, cut staffing levels, and shutter less efficient facilities. At the same time, however, UPS has been honing in on its best customers, which has required limiting its relationship with high-volume customers that offer only small profit margins.

Image source: Getty Images.

From a high-level view, this overhaul has led to lower revenue and higher costs. Which investors have clearly been worried about. However, there are early signs of success: revenue per package in the U.S. market has been rising despite lower overall revenue in the division. That's exactly the goal. Management is also calling for the second half of 2026 to be the inflection point for the turnaround effort.

UPS is building for the future UPS isn't just moving away from low-margin customers; it is also moving toward high-margin customers. One customer segment earmarked for growth is the healthcare sector. That's why UPS is spending $48 million on 27 temperature-controlled facilities. There is an increasing demand for medications that must be kept at low temperatures during the delivery process, notably including GLP-1 weight-loss drugs.

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This isn't a brand new business; UPS has been using acquisitions to bolster its global position in this sector. However, the key is that healthcare customers offer wider profit margins and attractive growth opportunities. It is far more desirable to invest in moving medicine than to boost operations that just move more low-value boxes.

UPS has a huge 6% dividend yield because investors are worried about the turnaround. That's fair given recent results. But the investment in temperature-controlled facilities highlights the company's long-term strategic focus and opportunity. It is one more sign that UPS could be close to shifting from shrinking its business to growing it. And when that happens, the growth will likely be more impactful because it will come with wider profit margins.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends United Parcel Service. The Motley Fool has a disclosure policy.

Albert Einstein called compound interest the eighth wonder of the world, quipping, "He who understands it, earns it... he who doesn't... pays it." Investing in dividend-paying stocks is one way to capitalize on the wonders of compounding. Investors who reinvest their dividends in a company that grows its payout can earn enriching returns.

Realty Income (O +3.15%) prides itself on paying dependable, growing monthly dividends. Here's a look at whether the real estate investment trust (REIT) can help you compound your investment into future riches.

Image source: Getty Images.

A compounding machine Realty Income has been a terrific dividend stock over the years. The REIT has increased its monthly payment 135 times since its public market listing in 1994, including the past 115 consecutive quarters. It has grown its dividend at a 4.1% compound annual rate during that three-decade period.

Investors who reinvested their dividends have earned a robust 13.6% compound annual return from the REIT since 1994. To put that return into perspective, an investor who bought $25,000 of Realty Income stock in 1994 would have seen that initial investment grow to nearly $1.2 million.

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Can Realty Income continue to compound? While Realty Income has clearly made investors rich through compounding since it went public, that past performance doesn't guarantee it will deliver similar results in the future. Here's a realistic look at how the REIT might perform over the next several decades.

Realty Income currently pays a dividend yield of more than 5%. That high-yielding payout provides a very sustainable base return. Realty Income generates very stable income from its diversified portfolio of net-leased real estate. Meanwhile, the REIT has a conservative dividend payout ratio (around 70%) and one of the strongest balance sheets in the sector. That gives it the financial strength to continue investing in growing its portfolio of income-producing real estate, which is the key to increasing its dividend.

The REIT has historically grown its adjusted funds from operations (AFFO) per share at a 5% annual rate through a combination of rent growth and new investments, supporting its 4.1% compound annual dividend growth rate. Realty Income has been positioning itself to deliver higher future growth through a series of strategic initiatives. It has formed several strategic private capital partnerships that should accelerate AFFO per share growth through capital-light revenue, such as management fee income. The REIT is also forming strategic partnerships to capitalize on the large, fast-growing data center segment. These initiatives could enable the REIT to grow its AFFO at a mid-to-high single-digit rate in the future.

With a 5%+ current yield and the potential to deliver 5%+ annual AFFO per share growth in the future, Realty Income could produce a more than 10% annualized total return (assuming no change in its valuation multiple). That level of return could certainly make you rich through long-term compounding. For example, if you invested $5,000 into Realty Income each year and it delivered an average annual return of 11%, the REIT could grow your investment to over $1.1 million in 30 years.

An enriching dividend stock Realty Income has made long-term investors rich by steadily growing its monthly dividend. The REIT is in a strong position to continue compounding shareholder value going forward, driven by its new strategic capital partnerships and data center investments. That makes it a great dividend stock to buy and hold long-term, as it should steadily create more wealth for shareholders.

MercadoLibre is primed for a rebound after a ~30% stock decline despite accelerating growth, especially in Brazil. I see MELI benefiting from secular Latin American growth, with ~$20B quarterly GMV expanding at a mid-30s pace. MercadoPago, MELI's fintech arm, drives TPV at ~4x GMV and now contributes nearly half of total revenue.

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Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (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.

Chubb: Managing Volatile RevenueChubb (CB +2.57%) primarily generates revenue by offering a broad spectrum of commercial property and casualty, agricultural, and life insurance products to individual and corporate clients globally.

It recently entered a partnership with Safe Harbor Marinas and reduced exposure in its shared property business, and it reported 16% net income margin for the quarter ended March 31, 2026.

Travelers Companies: Steady Top-Line TrendsTravelers Companies (TRV +2.30%) primarily earns revenue by providing a comprehensive portfolio of commercial and personal property and casualty insurance products through a network of independent agents and brokers.

It recently launched an artificial intelligence tool for claims analysis and joined a sustainable insurance initiative in California, while recording 14% net income margin for the quarter ended March 31, 2026.

Why Revenue Matters for Retail InvestorsFor financial institutions such as Chubb and Travelers, revenue here refers to interest income plus non-interest income and is not net of interest expense. It serves as a critical baseline indicator of how much money a business brings in before any operational costs are deducted.

Quarterly Revenue for Chubb and Travelers CompaniesQuarter (Period End)Chubb RevenueTravelers Companies RevenueQ2 2024 (June 2024)$13.9 billion$11.3 billionQ3 2024 (Sept. 2024)$15.1 billion$11.9 billionQ4 2024 (Dec. 2024)$14.2 billion$12.0 billionQ1 2025 (March 2025)$13.4 billion$11.8 billionQ2 2025 (June 2025)$14.9 billion$12.1 billionQ3 2025 (Sept. 2025)$16.2 billion$12.5 billionQ4 2025 (Dec. 2025)$15.3 billion$12.4 billionQ1 2026 (March 2026)$14.8 billion$11.9 billionData source: Company filings. Data as of June 23, 2026.

Foolish TakeExamining the revenue trends for insurance giants Chubb and Travelers is a contrast between the former’s greater variability across quarters versus the latter’s quarterly sales consistency. This difference is a result of Chubb’s global operations. Nearly half of its sales come from international markets, exposing the company to fluctuations in foreign currency exchange rates.

Meanwhile, in 2025, Travelers produced 93% of its revenue from the U.S., and its Canada operations were sold at the start of 2026, reducing international exposure even further. As a result, Chubb’s sales are meaningfully higher than Travelers.

While quarterly revenue fluctuations are normal, a trend to look for is rising year-over-year sales. From that perspective, Chubb has experienced stronger growth. Its first-quarter revenue of $14.8 billion was a 10% increase over 2025’s $13.4 billion while Travelers’ sales rose 1% in that time. Given Travelers is U.S.-focused, its revenue won’t see the kind of expansion that Chubb can enjoy from its global presence.

But revenue is not the only focus in evaluating these companies. Another key consideration is net income growth. Here, both performed well in Q1. Chubb’s net income of $2.32 billion was a 74% year-over-year increase. Travelers reported Q1 net income of $1.7 billion, a whopping 333% jump, helping to send its shares to a multi-year high of $342.31.

© LucaLorenzelli / iStock Editorial via Getty Images

Toyota (NYSE:TM | TM Price Prediction) and Ford (NYSE:F) closed very different earnings cycles. Toyota wrapped fiscal 2026 with $323.62 billion in revenue and a global hybrid engine humming across five brands. Ford posted a $43.25 billion Q1 and raised its 2026 outlook, yet the story underneath is a U.S. truck franchise carrying an EV division still bleeding cash.

Hybrid Cash Machine Meets a Truck-Powered Turnaround Toyota’s electrified mix hit 48.1% of retail sales, with BEV volumes up 68.4% to 243 thousand units. That mix, plus a Financial Services segment that grew operating income 24.6% to $5.44 billion, helped absorb an $8.81 billion U.S. tariff hit. Operating cash flow landed at $34.94 billion.

Ford’s quarter leans on Blue and Pro. Ford Blue revenue rose 14% to $23.9 billion, powered by F-Series, Bronco, and Expedition. Ford Pro delivered $1.69 billion EBIT with paid software subs up 30% YoY to 879,000. Model e lost $777 million, and a $1.30 billion IEEPA tariff benefit flattered results.

Business Driver Toyota Ford Main Growth Engine Hybrids and Lexus premium F-Series, Bronco, Ford Pro software Management Focus Cost reform, SDV, value chain Ford+ plan, Universal EV platform Key Drag U.S. tariffs, China margin Model e losses, aluminum costs Global Insulation vs. a Narrower U.S. Bet Toyota earns roughly $132.70 billion in North America but balances that with $50.71 billion in Japan, $50.41 billion in Asia, and $40.84 billion in Europe. Ford is heavily U.S.-anchored, amplifying commodity and tariff swings. Jim Farley framed it bluntly: “We built the foundation for a more modern, resilient Ford, improving cost and quality and building our world-class team.” Model e guidance calls for a $4.0 billion to $4.5 billion loss this year.

Valuation frames the divergence. Toyota trades at a 9 trailing P/E with a 3.65% dividend yield and a 0.306 beta. Ford’s $0.15 quarterly payout is generous, but Q1 free cash flow was negative $1.87 billion.

The Next Test Is Who Compounds Through Tariffs Toyota guided FY2027 operating income down 20.3% to JPY 3.0 trillion, absorbing more tariff pain and Middle East drag. Ford raised 2026 adjusted EBIT guidance to $8.5 billion to $10.5 billion. Watch whether Toyota’s BEV ramp to 598 thousand units lands without eroding hybrid margins, and whether Ford’s Universal EV platform narrows Model e losses before commodity headwinds hit their $2 billion peak.

Why I Lean Toyota for Cash Flow and Sleep-at-Night Ownership Toyota is the more resilient business. The hybrid franchise generates cash Ford’s EV unit still consumes, and the global footprint softens shocks hitting Ford’s Michigan-heavy P&L directly. Ford’s Blue and Pro segments offer real optionality with raised guidance. Toyota offers durable free cash flow, a 0.823 price-to-book, and a dividend backed by $80.83 billion in cash. The setup weakens only if Model e losses shrink faster than Toyota’s tariff drag deepens.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Toyota didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Berkshire Hathaway (BRKA +1.14%)(BRKB +1.40%) is widely followed for its investment approach, which includes buying companies outright and buying shares of publicly traded companies. However, holding cash is also an investment decision, and at the end of the first quarter of 2026, Berkshire Hathaway had nearly $400 billion in cash. It would be better if CEO Greg Abel could find attractive investment opportunities for that cash, but that cash isn't dead money anymore.

The good and the bad of cash Former Berkshire Hathaway CEO Warren Buffett had a pretty simple concept around cash: If he couldn't find anything worth buying, he would hold cash. Buffett would rather wait than buy something just to buy something. Abel, his hand-picked successor, appears to have a similar mindset, noting that the cash balance rose in the single quarter that he was at the helm.

Image source: Getty Images.

That cash will be valuable during the next bear market, providing the business with a cushion. It will also give Abel the wherewithal to step in and buy while others are fearful and selling, effectively allowing the CEO to buy attractive assets while they are on sale. From this perspective, noting that the S&P 500 index (^GSPC +0.00%) is trading near all-time highs, investors should be pleased with the balance sheet positioning of Berkshire Hathaway.

The flip side of that argument is that the cash would likely yield higher returns if invested. That's true, but only if it is invested wisely. If Buffett and now Abel couldn't find anything worth buying, it is better for the money to sit in cash. A few years ago, while interest rates were near historical lows, holding cash was a real burden. But today, interest rates are higher, and cash is providing reliable low single-digit returns, with the Fed's target range for the federal funds rate currently set at 3.5% to 3.75%.

The news could get better on this front, as well. Although the new Fed chief, Kevin Warsh, had been talking about cutting rates before his appointment, the rate was held steady after his first Fed meeting. And the indication appears to be that rates will remain at current levels or perhaps rise. So Berkshire Hathaway's huge cash hoard could actually generate more income in the future, noting that the company largely holds short-term U.S. Treasury Bills ($339 billion at the end of the first quarter).

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As those government bonds roll over, Berkshire Hathaway buys new ones at the current rate. That step up in yield should happen fairly quickly, as Treasury Bills have durations that range from four weeks to a year. So the company's cash is a safety valve, a source of capital, and, increasingly, a valuable source of income. Getting paid more to wait for the right investment to come along is hard to complain about.

Berkshire Hathaway could be attractive if you are worried about the market Berkshire Hathaway is a very unique and complex company. However, if you are worried about the market's lofty levels, Berkshire Hathaway's huge cash pile could actually be a reason to buy the stock. That cash isn't the drag it once was, and it sets CEO Abel up to buy when others, perhaps including you, are fearful.

Choosing between Dyne Therapeutics (DYN +5.87%) and Recursion Pharmaceuticals (RXRX +3.54%) requires balancing the potential of targeted muscle-tissue therapies against the broad, data-driven power of artificial intelligence in drug discovery.

Dyne Therapeutics focuses on solving delivery challenges for neuromuscular diseases, while Recursion Pharmaceuticals aims to industrialize drug discovery through its proprietary digital platform. Both companies represent high-risk, high-reward opportunities within the healthcare sector for investors seeking clinical-stage innovation.

The case for Dyne TherapeuticsDyne Therapeutics operates in the field of biotech stocks by developing therapeutics that target muscle and the central nervous system. Its proprietary Forces platform aims to deliver medicine directly to affected tissues to treat conditions like Duchenne muscular dystrophy (DMD). The company relies on a loan agreement with Hercules Capital (HTGC +0.25%) as its only committed source of external capital. Customer concentration like this adds a layer of risk to the business.

The company had no revenue in FY 2025 because it is still in the development stage. Dyne reported a net loss of $446.2 million for the period, compared to a net loss of $317.4 million the prior year. This increasing loss reflects the rising costs associated with moving multiple candidates through clinical trials. High research spending is common for companies at this stage of development.

Its debt-to-equity ratio is close to 0.0x, indicating a minimal reliance on borrowed funds relative to shareholder equity. Free cash flow for FY 2025 was nearly negative $405.1 million. Free cash flow is cash from operations minus capital expenditures, which represents the money left after paying for business maintenance.

Recursion Pharmaceuticals is building an AI-native discovery platform to identify new investigational medicines across oncology and rare diseases. The company generates revenue through strategic collaborations with large partners like Roche, Genentech, and Takeda Pharmaceutical Co (TAK +5.14%). It also maintains technical relationships with Bayer, Merck & Co (MRK +3.34%), Sanofi SA (SNY +3.67%), and Nvidia (NVDA 1.39%). These partnerships provide necessary capital and validation for its proprietary digital operating system.

In FY 2025, revenue reached approximately $74.7 million, representing nearly 27% growth over the previous fiscal year. Despite this growth, the company reported a net loss of nearly $645 million for the same period.

As of its December 2025 balance sheet, the company maintained a debt-to-equity ratio of near 0.1x, indicating a strong position to meet short-term liabilities. Free cash flow for the period was approximately negative $378 million, reflecting the high costs of maintaining its data-generation capabilities and proprietary hardware.

Risk profile comparisonDyne Therapeutics faces significant liquidity risks and anticipates needing substantial additional funding to support its research pipeline. The company is highly dependent on meeting specific clinical and regulatory milestones to access remaining loan tranches from its lenders. Furthermore, it relies entirely on third-party suppliers for critical components, creating operational vulnerability. Any failure in clinical trials or the termination of intellectual property licenses with partners such as the University of Mons could significantly impact the business.

Recursion Pharmaceuticals relies entirely on the success of its AI platform to identify viable drug candidates. There is no guarantee that AI-driven discoveries will translate into successful clinical outcomes or regulatory approvals. The company also faces integration risks following its acquisition of Exscientia, which could impact its financial results if synergies are not realized. Continued operating losses may lead to shareholder dilution if the company must issue more stock to raise capital.

Valuation comparisonRecursion Pharmaceuticals carries a significant premium relative to its current revenue. Dyne Therapeutics, meanwhile, has neither of these ratios because it is not expected to generate revenue in 2026 and didn’t in 2025.

MetricDyne TherapeuticsRecursion PharmaceuticalsSector BenchmarkForward P/En/an/a389.1xP/S ration/a26.8xSector benchmark uses the SPDR XLV sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?Dyne Therapeutics may not have revenue, but its $3.7 billion market cap is a sign of investors’ faith in the business. Dyne is preparing its first product for Duchenne Muscular Dystrophy to enter the market in the first quarter of fiscal 2027, with its second product, DM1, expected to come to market in 2028

Long-term revenue projections are inherently more speculative, but analysts see Dyne making $53 million in sales in 2027 and $277 million in 2028, and reaching well over $1 billion in 2030. That’s a great outlook.

Recursion is also a development-stage firm with a $2 billion market cap, but its product revenue appears further off. Right now, the business generates annual revenue through milestone payments from development partners like Sanofi. That revenue is expected to be lower in 2026. The business is making progress with its AI-based discovery platform. In the first quarter, management touted its first clinical proof of concept with its polyp-related treatment, REC-4881 allosteric MEK1/2 inhibitor focused on FAP. It showed a significant reduction in precancerous polyps, a major driver of the disease’s progressive nature. Still, significant revenue for the business is seen as years away.

Both companies are more speculative buys, given that they require regulatory approvals and have greater capital needs. But given Dyne appears closer to getting its first treatment to market, it gets the nod

New York, New York--(Newsfile Corp. - July 4, 2026) - WHY: Rosen Law Firm, a global investor rights law firm, reminds purchasers of securities of FS KKR Capital Corp. (NYSE: FSK) between May 8, 2024 and February 25, 2026, inclusive (the "Class Period"), of the important July 6, 2026 lead plaintiff deadline.

SO WHAT: If you purchased FS KKR Capital securities during the Class Period you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.

WHAT TO DO NEXT: To join the FS KKR Capital class action, go to https://rosenlegal.com/submit-form/?case_id=64089 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than July 6, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.

WHY ROSEN LAW: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm has achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.

DETAILS OF THE CASE: According to the lawsuit, throughout the Class Period, defendants made false and/or misleading statements and/or failed to disclose that: (1) FS KKR Capital overstated the effectiveness of its portfolio restructuring efforts for its nonaccrual companies; (2) FS KKR Capital overstated the valuation of its portfolio investments and/or overstated the effectiveness of FS KKR Capital's portfolio valuation process; (3) FS KKR Capital overstated the durability of its quarterly distribution strategy; and (4) as a result of the foregoing, defendants' positive statements about FS KKR Capital's business, operations, and prospects were materially misleading and/or lacked a reasonable basis. When the true details entered the market, the lawsuit claims that investors suffered damages.

To join the FS KKR Capital class action, go to https://rosenlegal.com/submit-form/?case_id=64089 or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.

No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.

Follow us for updates on LinkedIn: https://www.linkedin.com/company/the-rosen-law-firm, on Twitter: https://twitter.com/rosen_firm or on Facebook: https://www.facebook.com/rosenlawfirm/.

Attorney Advertising. Prior results do not guarantee a similar outcome.

-------------------------------

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/303887

Source: The Rosen Law Firm PA

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The first half of the trading year typically operates on a dominant market narrative. Over the past six months, that narrative has favored massive artificial intelligence (AI) and compute infrastructure rallies. By July, those storylines can start to lose momentum as investors reassess crowded trades and look for the next source of market breadth.

As Q3 institutional window dressing concludes, portfolio managers have already locked in their first-half performance for client statements and are actively resetting their risk models. Some institutional investors may be looking for a specific setup right now: asymmetric risk-reward in sectors starved of capital.

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Institutions may be quietly cutting dead weight, locking in gains from crowded technology sector trades, and positioning ahead of the next major market rotation. The goal for investors is to front-run this institutional capital flow by targeting fundamentally sound companies anchored by large backlogs, concrete government contracts, and technical mean-reversion setups.

Multiple Compression: The Math Catching Up to TechMega-cap technology and pure-play AI software trades are historically crowded and mathematically overextended. The momentum concentrated in these names relied on late-stage multiple expansion that cannot sustain itself indefinitely.

When a software business trades at 30 times forward sales, investors demand perfection in operational execution just to maintain current price levels. Any slight miss in forward guidance or revenue acceleration triggers margin compression.

Capital allocators recognize this structural vulnerability. Any broadening of market breadth leaves these hyper-valued names susceptible to rapid pullbacks. Funds are actively rotating out of these exhausted narratives to find hard assets in the physical economy, hunting for tangible value over speculative growth.

Taking Flight: Assembly Lines Replace R&D DreamsThe advanced aviation sector is shedding its origins in speculative research and development to become a heavily capitalized, federally certified manufacturing industry. Institutional capital favors operational milestones over conceptual designs.

Joby Aviation Today

$8.44 -0.05 (-0.53%)

As of 07/2/2026 03:59 PM Eastern

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

52-Week Range$7.75▼

$20.95Price Target$13.64

Joby Aviation NYSE: JOBY recently provided a strong catalyst for scaled commercial production. Filings from late June formalize a strategic manufacturing alliance with Toyota Motor Corporation NYSE: TM.

Toyota Motor Corporation now holds a 13.1% beneficial ownership stake and established a 51% controlling interest in the newly formed preparation enterprise dedicated to manufacturing Joby Aviation aircraft. Backed by a $500 million direct investment, this capital structure de-risks the commercial scale-up process. The transition shifts Joby Aviation from a visionary concept to a tangible operational business with an automotive sector giant running the factory floor.

Conversely, Archer Aviation NYSE: ACHR presents a textbook technical mean-reversion setup. Despite a 35% year-to-date drawdown, Archer Aviation's underlying balance sheet is a fortress. Archer Aviation retains $1.78 billion in cash and short-term investments, yielding a current ratio exceeding 18x.

Institutional capitulation often signals a technical bottom. Prominent growth funds recently offloaded heavy blocks of Archer Aviation shares near 52-week lows, flushing out weak hands. Rapid progress through Federal Aviation Administration type certification and government integration programs validates the operational timeline, making the current discount an attractive accumulation zone before regulatory clearance is priced in.

Monopolizing Orbit: The New Vertical Space RaceThe commercial space economy is currently transitioning from niche experimental launches to scaled telecom and infrastructure duopolies. Billions in government subsidies and mergers are permanently altering sector valuation models.

Rocket Lab Today

$100.46 0.00 (0.00%)

As of 07/2/2026 04:00 PM Eastern

52-Week Range$35.25▼

$151.00Price Target$108.24

Rocket Lab NASDAQ: RKLB recently announced an $8 billion cash-and-stock acquisition of Iridium Communications. The broader market has yet to fully price in the extent to which this alters the Rocket Lab corporate valuation model.

By acquiring Iridium Communications, Rocket Lab vertically integrates into a space services powerhouse, securing high-margin recurring telecom revenue to offset the cash burn traditionally associated with launch segments. Supported by a 63.5% year-over-year increase in Q1 top line to $200.3 million and a record $2.2 billion backlog, Rocket Lab is mispriced following recent broader technology selloffs.

A unique market dynamic is unfolding for Intuitive Machines NASDAQ: LUNR. Short sellers frequently target capital-intensive space equities, assuming management will heavily dilute shareholders to fund operations. Currently, 28.85% of Intuitive Machines' public float is sold short.

However, Intuitive Machines recently secured a firm-fixed-price NASA Commercial Lunar Payload Services contract valued up to $148.3 million. Securing massive non-dilutive government contracts to deliver lunar payloads provides a predictable revenue floor that breaks down the bearish thesis. The technical setup currently favors short-squeeze mechanics driven by forced institutional covering on operational execution.

AST SpaceMobile NASDAQ: ASTS offers a high-beta momentum play as it nears the commercialization of its direct-to-cell satellite constellation. AST SpaceMobile maintains a strong liquidity profile with roughly $3.5 billion in cash runway. A recent $926 million subsidy from the Japanese government to deploy a domestic satellite network with Rakuten OTCMKTS: RKUNY validates the technology on a sovereign level. Capital rotation into space-based telecom will continue driving upward price pressure for AST SpaceMobile.

Plugging in: The Backdoor AI Infrastructure PlayFuelCell Energy Today

$28.11 0.00 (0.00%)

As of 07/2/2026 04:00 PM Eastern

52-Week Range$3.78▼

$37.88Price Target$22.00

Data centers require immense amounts of uninterrupted baseload power. Traditional energy grids are entirely tapped out, creating an urgent macro tailwind for grid-independent energy solutions. FuelCell Energy NASDAQ: FCEL is well-positioned as a backdoor play on artificial intelligence infrastructure. The narrative surrounding FuelCell Energy has shifted from legacy green energy to essential hyperscaler baseload power.

The realization of 12.5 MW standardized energy block demand for data centers, paired with a $49 million U.S. EXIM Bank financing package, fundamentally transforms FuelCell Energy's balance sheet.

Recent forced index buying catalyzed double-digit percentage spikes following the addition of FuelCell Energy to the Russell 2000. Heavily beaten down in the first half of the year, FuelCell Energy now offers a technical mean-reversion setup backed by critical physical demand.

Act Before the Crowd: Finalizing a Hardware StrategyPositioning portfolios for the back half of the year requires identifying structural shifts before they dominate financial headlines. The transition away from overextended software multiples into tangible hardware, government backlogs, and de-risked manufacturing joint ventures offers a highly favorable asymmetric profile.

Allocating capital toward fundamentally sound businesses anchored by technical downside protection remains the most effective strategy to capture the impending Q3 institutional rotation. Let the smart money show you where the physical economy is heading, and act confidently before the window closes.

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

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Sandisk (SNDK 14.13%) is the best-performing S&P 500 stock so far in 2026, and it isn't particularly close. It's up around 800% so far in 2026, easily outperforming second-place Micron Technology, which is up "only" about 300%. That's a simply incredible performance for just six months.

Still, after a run like that, it's reasonable to wonder if there is further upside ahead or if Sandisk has delivered everything that it's going to deliver in 2026.

Although it may seem surprising, I think there is plenty of upside left in Sandisk's stock in the second half of 2026, especially with the major shortages going on in its industry. While it won't return another 800% from here, it could still reward investors quite well.

Image source: The Motley Fool.

The memory chip shortage is getting worse Sandisk makes NAND memory, which is primarily utilized for long-term data storage. Most of the NAND memory you'll encounter in a data center comes in the form of solid-state drives (SSDs), which are used for long-term information storage. Sandisk and its peers aren't used to the massive demand being generated by data centers, and this cohort doesn't have the production capacity necessary to meet demand. As a result, prices for memory chips are soaring, and Sandisk is benefiting from it.

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Everyone in the industry is scrambling to stand up more capacity, but it may be a losing battle. Micron, another memory chip maker, believes that "tight conditions" will persist beyond 2027, which bodes well for the demand curve Sandisk is seeing.

Compounding this is a rapidly expanding data center build-out plan; Nvidia believes global data center spending could reach $3 trillion to $4 trillion annually by 2030. That creates an environment where Sandisk and its peers can succeed for a long time, making the stock an intriguing buy.

Wall Street analysts project major growth ahead for Sandisk, with fiscal fourth-quarter growth of 336% (ended in June) and 122% growth for fiscal 2027. As long as the stock is reasonably priced, this means Sandisk stock could easily go higher from here, and fortunately for investors, it is. I'm using fiscal 2027 estimates to value Sandisk's stock, since it just started:

SNDK PE Ratio (Forward 1y) data by YCharts

At 11 times fiscal 2027 earnings, Sandisk stock isn't very expensive, and could easily double from here and still be reasonably valued. As a result, I think Sandisk could head higher from today's levels, and makes for a great buy now.

Cory Johnson talks about Anthropic ahead of its and OpenAI's upcoming IPOs. On SpaceX (SPCX), Cory argues that “what's best for millionaire Elon Musk, may not be the best for everyone else,” explaining that big indexes buying into the stock takes away price discovery for peers.

© Chip Somodevilla / Getty Images

The AI arms race has entered a new phase. For the past three years, the biggest technology companies have competed by buying as many Nvidia (NASDAQ:NVDA | NVDA Price Prediction) GPUs as they could get their hands on. Now they’re racing to build something even more valuable: their own AI chips. 

That shift is about more than lowering costs. It gives hyperscalers greater control over performance, supply chains, and the pace of innovation. Meta Platforms (NASDAQ:META) appears ready to take another major step in that direction with a reported $6.5 billion agreement that could strengthen its long-term AI ambitions while reshaping the semiconductor landscape.

Meta Is Building More Than Just Another AI Chip According to reports from Korean media, Meta is negotiating a roughly $6.5 billion agreement with Samsung Foundry to manufacture its third-generation Meta Training and Inference Accelerator (MTIA) processors. Unlike the first two MTIA generations, which were built by Taiwan Semiconductor Manufacturing (NYSE:TSM), the new chips would be produced using Samsung’s cutting-edge 2-nanometer SF2 manufacturing process featuring Gate-All-Around (GAA) transistor technology.

The scale of the reported agreement stands out. The contract reportedly covers hundreds of thousands of semiconductor wafers, making it one of Samsung Foundry’s largest AI orders after its reported $16.5 billion Tesla (NASDAQ:TSLA) agreement.

The supplier change is just as important as the technology.

MTIA Generation Manufacturing Partner Strategic Focus First Generation TSM Launch custom AI silicon Second Generation TSM Expand AI inference capabilities Third Generation (reported) Samsung Foundry Diversify supply chain and adopt 2nm process This isn’t simply about building faster chips. It’s about ensuring Meta can keep expanding its AI infrastructure without depending on a single manufacturing partner.

Why This Matters for Meta’s AI Strategy Meta has made no secret of its AI ambitions. CEO Mark Zuckerberg has said the company plans to invest hundreds of billions of dollars in AI infrastructure while targeting as much as 5 gigawatts of computing capacity by 2030. That scale demands more than buying Nvidia hardware — it requires custom silicon optimized for Meta’s own Llama models and recommendation engines.

Custom chips also improve economics. NVIDIA’s GPUs remain the gold standard for AI training, but they command premium pricing and face periodic supply constraints. By designing its own accelerators, Meta can tailor performance to its workloads while reducing dependence on outside suppliers.

Buying chips is a race to the bottom—owning them is a bid for total dominance. Inside the $6.5 billion power play that signals the end of the Nvidia arms race. © 24/7 Wall St. Diversifying manufacturing adds another layer of protection. TSM remains the world’s leading foundry, but its production capacity is stretched by demand from companies including Apple (NASDAQ:AAPL), Nvidia, Advanced Micro Devices (NASDAQ:AMD), and Broadcom (NASDAQ:AVGO). Using Samsung reduces concentration risk while providing leverage during future pricing negotiations. It also helps hedge against geopolitical uncertainty surrounding Taiwan.

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Looking ahead, these chips could support something even bigger. As Meta expands into AI cloud services, proprietary hardware could become a competitive advantage, much like Amazon‘s (NASDAQ:AMZN)  AWS built custom Graviton processors or Google developed its Tensor Processing Units (TPUs).

The Bigger Trend Investors Should Watch Meta isn’t acting alone. Alphabet (NASDAQ:GOOG), Amazon, Microsoft (NASDAQ:MSFT), and Tesla have all invested heavily in custom AI silicon. The common goal is simple: reduce long-term infrastructure costs while differentiating their AI platforms.

That doesn’t spell the end for Nvidia. Training frontier AI models will continue requiring enormous numbers of GPUs for years. But inference — the process of actually running AI models — and specialized workloads increasingly favor application-specific chips that consume less power and cost less to operate.

Samsung also benefits if the reported agreement closes. After trailing TSM in advanced manufacturing for years, landing another hyperscaler on its 2nm process would strengthen its credibility and help build momentum for its foundry business.

Key Takeaway In short, Meta’s reported $6.5 billion Samsung agreement is about far more than changing chip suppliers. It’s another sign that the largest AI companies are shifting from buying generic hardware to building customized infrastructure designed around their own software.

Granted, Nvidia remains the dominant force in AI accelerators, and custom chips won’t replace its GPUs overnight. That said, investors should recognize the broader trend. The AI chip market is becoming more fragmented, with hyperscalers increasingly controlling their own destinies.

Ultimately, Meta’s reported move strengthens its long-term competitive position by lowering supply chain risk, improving cost control, and supporting future cloud ambitions. For long-term shareholders, that’s the real story — and one worth following well beyond the latest headline.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Meta didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

A large percentage of AI stocks already trade at a rich premium. So despite these companies' promising long-term revenue growth potential, investors may not profit as much as they predict.

To realize the biggest profits, AI investors must find AI stocks trading at low valuations. This is easier said than done. The trick isn't necessarily to buy out-of-favor AI stocks -- as very few exist at this time -- but to find stocks that the market doesn't yet realize are AI stocks. This way, investors can buy into AI stocks without the AI stock premium.

After falling 20% in value since 2026, the business below looks like a promising bet for AI investors looking to avoid the AI premium.

The market still doesn't appreciate this is an AI stock Rivian Automotive (RIVN +8.44%) is my favorite AI stock for the second half of 2026. But wait, isn't Rivian an electric vehicle (EV) stock? It is. But just like Tesla, the company has pivoted hard toward AI to power its autonomous driving ambitions.

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At one time, the market did appreciate Rivian's AI pivot. Last year, from Nov. 4 to Dec. 19, shares nearly doubled in value. What was the cause? The surge was at least partially due to the company's first "AI Day," which was held on Dec. 11.

During that event, Rivian announced several key strategy shifts. The company's future would no longer be tied simply to producing consumer-grade vehicles. Instead, technology would become the unmistakable focus. For example, Rivian now plans to produce its own AI chips, invest so heavily into self-driving software that it no longer expects to be profitable by 2027, and integrate AI more heavily into its production process to reduce costs and improve throughput.

Image source: Getty Images.

Quite quickly, however, the hype surrounding Rivian's AI event faded. Shares have lost nearly one-third of their value since Dec. 19. But when you look at the numbers, there's plenty of reason to remain bullish. This year, analysts expect sales to grow by around 31%. Next year, sales growth should jump to 64%.

This growth is largely due to Rivian's launch of its first affordable vehicle priced under $50,000: its R2 SUV. Production and sales growth are just now beginning to scale. Long-term, however, Rivian's pivot to AI is already paying off. In March -- just a few months after its first AI event -- Uber Technologies placed a $1.25 billion order for up to 50,000 Rivian R2s. Uber wants to scale its own robotaxi service. And it's apparently so bullish on Rivian's technology that it wanted to make sure it could secure plenty of vehicles as that business emerges.

It's not yet clear how this order will translate into accounting revenue, given it was structured as a direct investment. But it's a clear sign that well-funded robotaxi operators like what they see coming out of Rivian. Rivian shares still trade at just 3.4 times sales. As its AI pivot gains traction, expect that valuation to improve.

Visa (V +2.87%) has historically been a market-beating stock, but it's been struggling this year, and investors are noticing several headwinds. The stock is down 2% this year, compared with a 9% increase for the S&P 500. Is this a buying opportunity?

The world's tollbooth Visa is the largest credit card network in the world, with more than $17 trillion in payments processed last year and more than 330 billion transactions. It works with 14,500 partnering financial institutions that provide credit, while Visa provides the network that moves the money, taking a small fee from each transaction. It acts as a global "tollbooth" for payments, a service-oriented business that generates high revenue and strong profits.

This is a classic "cash cow" business, with Visa in a dominant position and high barriers to entry. Its network is entrenched in global payments, and it continually adds new services to its platform as finance enters the digital age.

Image source: Getty Images.

In the 2026 fiscal second quarter (ended March 31), revenue increased 17% year over year, while adjusted earnings per share (EPS) were up 20%. Those are powerful results, especially in the high-inflation climate.

However, the market isn't seeing it that way. There are several headwinds, specifically in the rise of stablecoins, which challenge the Visa global network, and legislation related to interchange rates. Stablecoins bypass the Visa rails, and the Credit Card Competition Act (CCCA) threatens to lower fees and break up the Visa-Mastercard duopoly.

On top of that, cross-border volume has been trending down over the past few quarters since it bounced back from pandemic lows.

Is Visa stock a bargain at this price? Visa has a strong economic moat and a dominant position by far. It has an excellent, profitable business model that makes it an important part of the global economy, and it has a robust innovation engine. These are prized features, and Visa stock is typically expensive because of them.

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At the current price, Visa stock trades at a price-to-earnings (P/E) ratio just under 30, which is slightly below recent averages (31 over the past three years) and much lower than historical averages (35 over the past 10 years). It's a good deal, but not an incredible bargain.

Visa is an excellent, all-weather stock to own for the long term. At this price, I'd call it a great business at a fair price, which is how Warren Buffett looks for stocks. It was part of the Berkshire Hathaway portfolio for years until Greg Abel recently sold it, and it could be a great stock to add to a diversified portfolio at the current price.

Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway, Mastercard, and Visa. 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.

Netflix (NASDAQ: NFLX | NFLX Price Prediction) and Walt Disney (NYSE: DIS) just reported quarters showing two opposite business models behind the same word: streaming. Netflix delivered an asset-light cash haul. Disney posted a record parks quarter and streaming profitability inflection, but carried a heavy capital bill. The contrast matters as discretionary budgets tighten.

Netflix Squeezes Cash. Disney Buys Cruise Ships. Netflix put up Q1 2026 revenue of $12.25 billion, up 16.19% year over year, and free cash flow of $5.09 billion on just $196.1 million of capex. The ad tier drew over 60% of sign-ups in ads markets, with advertiser count climbing 70% to more than 4,000 clients. A $2.8 billion Warner Bros. termination fee juiced the headline, but the operating engine was already humming.

Disney’s Q2 FY2026 told a different story. Revenue reached $25.17 billion, up 6.55%, with adjusted EPS of $1.57 beating the $1.4955 estimate. Entertainment SVOD operating income surged 88% to $582 million, hitting a 10.6% margin for the first time. Experiences set a Q2 record at $9.49 billion. The catch: capex of $1.97 billion and net income that fell 24.73% year over year.

Business Driver Netflix Disney Quarterly capex $196M $1.97B FY operating margin target 31.5% 10% SVOD Main growth engine Ads + price hikes Parks + SVOD inflection One Walks Away. One Doubles Down. Netflix collected its breakup check, restarted buybacks, and stayed disciplined. The company repurchased 13.5 million shares for $1.3 billion with $6.8 billion still authorized, and raised 2026 free cash flow guidance to roughly $12.5 billion. Japan led the quarter, with the World Baseball Classic becoming the most-watched Netflix program ever in that country.

Disney went the other way. ESPN acquired NFL Network for a 10% noncontrolling interest in ESPN, Hulu Live TV merged into Fubo at 70% Disney ownership, and the Disney Adventure cruise launched in Singapore. FY2025 capex hit $8.02 billion, a 48% jump. Sports operating income is expected to decline roughly 14% year over year in Q3 on programming costs.

The Next Test Is Sticky Inflation Watch whether Disney’s per capita parks growth, up 5% domestically, holds as gasoline spending climbed to $552.8 billion in May 2026 from $415.7 billion in January. Recreation services spending hit $862.3 billion in May 2026, a dataset high, which favors couch entertainment over plane tickets. Netflix’s content amortization is expected to peak in Q2 2026, so margin expansion in the back half is the real proof point.

Why Netflix’s Cash Machine Wins Netflix edges Disney here. The streaming wars are effectively over and Netflix won, and the numbers back that read: a 31.5% operating margin target against a Disney SVOD business that just crossed 10.6%. NFLX is down 21.31% year to date, so the market is pricing in tougher comps. For diversified entertainment exposure, Disney offers a broader mix of parks, sports, and streaming assets. For insulated, capital-light cash generation, Netflix is the cleaner story, even after a rough six months.

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Dividend Kings, companies with at least 50 consecutive years of dividend increases, are the quiet backbone of an income portfolio. Heading into July, three of them stand out for different reasons: One is the textbook compounding consumer staple, one is a turnaround with a catalyst on the clock and one is the high-yield income workhorse.

Here is the bull case for each.

Procter & Gamble (NYSE: PG) Procter & Gamble (NYSE:PG | PG Price Prediction) is the cleanest Dividend King in the group. The company just delivered its 70th consecutive annual dividend increase and has paid a dividend every year since 1890. At a recent price of $151.08, the stock yields roughly 3% and trades at a forward P/E of 21x.

The bull case is operational momentum. Q3 FY26 was the fourth consecutive top- and bottom-line beat, with core EPS of $1.59 against a $1.5552 estimate and net sales of $21.23 billion, up 7% year over year. Growth was broad: Beauty +11%, Grooming +7%, Health Care +7%, Fabric & Home Care +7%. CEO Shailesh Jejurikar described “a solid acceleration in top-line results…broad-based growth across product categories and regions.” Management plans to return roughly $10 billion in dividends and $5 billion in buybacks in FY26 and Wall Street’s average target sits at $163.52.

Risk: tariffs and commodities. P&G is absorbing a ~$400 million after-tax tariff headwind and ~$150 million commodity headwind, with core gross margin compressed 100 basis points. Guidance now points to the lower end of the $6.83 to $7.09 core EPS range.

Genuine Parts (NYSE: GPC) Genuine Parts (NYSE:GPC), the parent of NAPA, is the catalyst trade. Shares have ripped 20% in the past month to $117.67, yet the stock remains roughly flat year over year. The dividend streak now stands at 70 consecutive years, with the quarterly payout raised 3% to $1.0625, good for a yield near 4%.

The bull case has three legs. First, Q1 FY26 results came in “ahead of expectations,” with adjusted EPS of $1.77 on $6.26 billion in revenue and Industrial EBITDA margin expanding 90 basis points to 14%. Second, the planned tax-free separation into two independent public companies, Global Automotive and Global Industrial, is targeted for Q1 2027, and CEO Will Stengel called it a step “expected to unlock value for our stakeholders.” Third, DA Davidson initiated coverage with a Buy rating and a $145 target on June 23, citing the spin-off and NAPA cost-cutting. Forward P/E is just 15x.

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Risk: execution. Q4 2025 missed badly at $1.55 adjusted EPS versus $1.81 expected, hit by a $741.97 million non-cash pension settlement charge and a $150.5 million credit loss tied to the First Brands supplier bankruptcy. The next read is Q2 2026 earnings on July 21.

Altria (NYSE: MO) Altria (NYSE:MO) is the yield play. At $72.74, the stock pays a 6% dividend yield, trades at a trailing P/E of 15x, and has hiked the payout 60 times in the past 56 years. The most recent quarterly dividend was $1.06, paid July 10, 2026.

The bull case is cash flow. Q1 FY26 adjusted diluted EPS landed at $1.32 versus $1.25 expected, with revenue of $5.43 billion, up 20% year over year. Smokeable adjusted operating income rose 6% to $2.68 billion on pricing and contract manufactured export volume. CEO Billy Gifford said the company “delivered a strong start to the year, growing adjusted diluted EPS by 7% in the first quarter.” Altria returned $8 billion to shareholders in 2025 and reaffirmed FY26 adjusted EPS guidance of $5.56 to $5.72. Shares are up nearly 27% year to date.

Risk: secular cigarette volume decline. Domestic cigarette industry volume fell roughly 5%, Marlboro retail share slipped 1 point to 40%, and on! nicotine pouch share dropped 4 points to 13%. With NJOY ACE blocked by the ITC and not returning in 2026, the next-gen pivot remains the long-term overhang on an otherwise generous payout.

Three Different Roles for One Income Sleeve Each fills a distinct role. P&G offers compounding quality at a premium multiple. Genuine Parts offers value with a defined corporate catalyst into 2027. Altria offers a near-6% yield with structural decline priced in. For July positioning, the GPC earnings report on July 21 is the most immediate event to monitor, followed by P&G’s FY26 close and any update on tariff pass-through.

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Contact [email protected] for any questions or corrections.

There are several macro trends that I have high conviction in. However, there are also several sectors that are positioned to benefit immensely from these macro trends that the market has recently sold off. I detail why I am bullish on these sectors and some high-yielding funds that are well-positioned to benefit.

, /PRNewswire/ --

Why: Rosen Law Firm, a global investor rights law firm, reminds purchasers of Class A or Class C common stock of Zillow Group, Inc. (NASDAQ: ZG) (NASDAQ: Z) between February 11, 2025 and May 7, 2026, both dates inclusive (the "Class Period"), of the important August 10, 2026 lead plaintiff deadline in the securities class action first filed by the Firm.

So what: If you purchased Zillow common stock during the Class Period, you may be entitled to compensation without payment of any out of pocket fees or costs through a contingency fee arrangement.

What to do next: To join the Zillow class action, go to https://rosenlegal.com/cases/zillow-group-inc/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action. A class action lawsuit has already been filed. If you wish to serve as lead plaintiff, you must move the Court no later than August 10, 2026. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation.

Why Rosen Law: We encourage investors to select qualified counsel with a track record of success in leadership roles. Often, firms issuing notices do not have comparable experience, resources, or any meaningful peer recognition. Many of these firms do not actually handle securities class actions, but are merely middlemen that refer clients or partner with law firms that actually litigate the cases. Be wise in selecting counsel. The Rosen Law Firm represents investors throughout the globe, concentrating its practice in securities class actions and shareholder derivative litigation. Rosen Law Firm achieved the largest ever securities class action settlement against a Chinese Company. Rosen Law Firm was Ranked No. 1 by ISS Securities Class Action Services for number of securities class action settlements in 2017. The firm has been ranked in the top 4 each year since 2013 and has recovered billions of dollars for investors. In 2019 alone the firm secured over $438 million for investors. In 2020, founding partner Laurence Rosen was named by law360 as a Titan of Plaintiffs' Bar. Many of the firm's attorneys have been recognized by Lawdragon and Super Lawyers.

Details of the case: According to the lawsuit, defendants throughout the Class Period made materially false and/or misleading statements and/or failed to disclose that: (1) Zillow's agreement with Redfin Corporation was not a "partnership," but rather an acquisition of Redfin's business; (2) as a result of the Redfin Agreement, Zillow faced a materially heightened risk of regulatory scrutiny and liability under federal antitrust laws; (3) upon the filing of an antitrust lawsuit, Zillow continued to downplay its legal exposure; and (4) as a result, defendants' statements about Zillow's business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.  

To join the Zillow class action, go to https://rosenlegal.com/cases/zillow-group-inc/join or call Phillip Kim, Esq. toll-free at 866-767-3653 or email [email protected] for information on the class action.

No Class Has Been Certified. Until a class is certified, you are not represented by counsel unless you retain one. You may select counsel of your choice. You may also remain an absent class member and do nothing at this point. An investor's ability to share in any potential future recovery is not dependent upon serving as lead plaintiff.

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Contact Information:

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