As Space Exploration Technologies Corp. (NASDAQ: SPCX) closes out two weeks of trading, Steve Silver, an analyst at Argus Research, has initiated coverage of SpaceX stock.
On June 26, the Wall Street analyst initiated a ‘Hold’ rating for SpaceX stock. However, Silver did not provide a specific price target for SPCX stock for the coming 12 months.
He flagged several factors that lead to a neutral stance on SpaceX stock. For instance, he noted that while the company is growing strongly at the top line, it has yet to achieve consistent profitability.
As such, the analyst highlighted that SpaceX has been operating a hybrid business model that blends mature infrastructure with venture-style growth investment, thereby complicating near-term earnings visibility.
The analyst also pointed to the tight supply of SPCX shares and upcoming post-IPO lockup expirations as additional drivers of near-term volatility. At roughly 95 times 2025 revenues, Argus said it may likely be years before the valuation multiple normalizes to more typical levels.
“The IPO valuation implied a price-to-sales multiple of approximately 95-times 2025 revenues…we think it will likely be years before SPCX’s multiples land at more normal levels,” Argus noted.
SpaceX stock price forecast and performance Following the Argus rating on SpaceX, the average Wall Street target for the company’s stock hovered around $222.20 at the time of reporting, according to data from TipRanks. Out of the 7 analysts that have set SpaceX stock price target for 12 months, the highest target is $401, while the lowest was $115 at the time of publication.
SPCX stock since IPO. Source: Finbold Since it began trading earlier this month, SpaceX stock price has added about 13.45%, trading at about $153.16 at the time of publication. As such, the company had a market capitalization of about $2 trillion, already down $1 trillion from its top as Finbold reported. However, the company’s outlook could be bolstered by rising demand for AI stocks, especially after its acquisition of an AI-focused startup, as Finbold highlighted.
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The Space Exploration Technologies (SPCX +3.06%) IPO was the biggest, and arguably the most divisive, in history. It raised about $75 billion, and for a brief period on June 16, it surpassed Microsoft and Amazon -- two companies with much stronger balance sheets -- in market cap.
SpaceX has been extremely volatile in its first weeks on the market. Since peaking at $226, it has declined to about $155 at market close on June 24. Does the pullback make for a better buying opportunity, or is the leading space company still overvalued?
Image source: Getty Images.
The valuation is still astronomical The most common criticism in the lead-up to SpaceX going public was the valuation. SpaceX is trading higher than its IPO price of $135 at the time of this writing, so the valuation concerns haven't gone away.
SpaceX isn't profitable, reporting a net loss of $4.9 billion in 2025. Revenue that year was $18.7 billion. At a market cap of just over $2 trillion, SpaceX trades at 109 times last year's sales, making it the most expensive megacap stock. Palantir Technologies (PLTR +5.55%), previously the poster child for high valuations, is trading at 65 times annual sales.
Palantir used to be far more expensive, but it has lost 45% of its value since reaching an all-time high of $208 last November. That's what tends to happen with stocks trading at these kinds of premiums, because such high valuations are rarely sustainable.
The lockup expiration could create significant selling pressure Another risk of buying SpaceX stock now is that the stock is still in its lockup period, during which insiders can't sell their shares. While most companies set a fixed lockup period, typically 180 days, SpaceX handles this very differently.
It's taking a staggered approach, where selling windows for a percentage of insider holdings open gradually. The first selling window opens on the second trading day after the company's second-quarter 2026 earnings release, and insiders will be able to sell up to 20% of their shares. If the stock trades 30% above its IPO price (which would be $175.50) for at least five of the 10 trading days leading up to the earnings release, then insiders can sell up to an additional 10%.
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Selling windows will continue to open through Dec. 8, 2026, which is when the lockup period ends. However, CEO Elon Musk has said that he and "certain significant investors" have agreed to a 366-day lockup period.
The SpaceX IPO could reportedly turn more than 4,400 current and former employees into millionaires. It's a safe bet that many of them will want to sell at least some of their shares, both to lock in gains and because SpaceX stock has been volatile. SpaceX's selling windows will act as a headwind, and performance is likely to be rocky for at least the first 180 days.
The bottom line on SpaceX There are plenty of reasons to be excited about SpaceX as a business. It has a dominant share of the U.S. commercial launch market, conducting 80% of launches in 2025. Starlink has also been a winner, accounting for $11.4 billion in revenue. The jury's still out on the AI side of the company.
But based on the valuation and the lockup period, SpaceX is better to put on your watch list than to buy right now. That's what I'm doing, as I expect much better buying opportunities later in the year.
Robert Greifeld, former Nasdaq chairman and CEO, joins ‘Squawk on the Street' to discuss SpaceX as the stock has witnessed big spikes and drops following its public debut.
Around two weeks ago, Elon Musk’s SpaceX conglomerate went public. Everyone who is remotely interested has a fair idea of the numbers.
But in a nutshell, it was easily the biggest Initial Public Offering (IPO) in history. It also led to Mr Musk becoming the first ever trillionaire, however briefly.
Without doubt, the whole SpaceX SPCX IPO was a stunning success. The first trade was matched at $150, which represented a perfectly reasonable 11% premium to the issue price of $135 per share, and the stock then rallied to close out at just over $160, representing a first-day gain of 19%.
Plenty of retail investors received a small allocation and, on the Monday following the IPO, the stock then soared to just shy of $230.
Since then, it has sold off, and earlier this week, it broke below $150. That still represented a healthy premium to the IPO price, and the shares have picked up once again.
All in all, it was an impressive launch which appeared to go off without a hitch.
Meanwhile, there’s still a bit of a shakeout going on across the tech sector, particularly in semiconductor stocks.
The tech-heavy NASDAQ, along with the heavily-weighted-towards-tech S&P 500, peaked on the 2nd of June.
Both have struggled to make further upside progress ever since. Meanwhile, as June drew to a close, the old-school Dow and the small cap Russell 2000 made fresh record highs.
This looks like good news for stock market bulls as it suggests that some rotation is taking place whereby investors take profits on stocks which have outperformed recently (and the semiconductor sector has certainly done that) while ploughing the proceeds back into some overlooked, and relatively undervalued, corners of the market.
This indicates that risk appetite remains strong. US equities remain the investment of choice for the vast majority of investors, particularly within the US, where individuals have always favoured putting their savings in the stock market, where returns have been substantial, easily outpacing inflation.
But it wasn’t that long ago when US retail investors favoured holding a diversified portfolio with a mixture of growth and value plays, including dividend payers, energy, consumer staples, and the like.
Not only that, but investors would also own a chunk of bonds as well. Yet evidence suggests that there is far less diversification across portfolios than there used to be.
And very few investors would even look at the bond market these days.
In the years following the Great Financial Crisis of 2008/9, bonds soared as yields slumped as central banks around the world cut interest rates to stimulate growth.
Stock markets also soared as central banks goosed the markets with quantitative easing, and governments joined in and provided dollops of fiscal stimulus too.
That was the backdrop to the rather unusual situation where equities rallied along with bonds.
Historically, there was typically a negative correlation. This was the main reason that investors were advised to gradually reduce their exposure to equities and raise their bond holdings as they approached retirement.
But once central banks began to normalise rates, bonds underperformed. In fact, in the years after 2022, the bond market experienced one of its worst bear markets in history.
Yet, after a rocky start to 2022, equities took off in October and have been on a bull run ever since.
The trouble is that investors tend to extrapolate out, and decide that whatever has happened in the recent past is likely to go on forever.
Even if they appreciate that all bull markets end eventually, they calculate that they will see the signs well in advance and get out before everyone else. Some do.
But, once again, history shows us that many don’t. Very few investors are able to time the markets. In fact, many analysts insist that it can’t be done.
Yet there are often things which, when looked back on in hindsight, can signal, to quote Alan Greenspan, ‘irrational exuberance’.
Could the SpaceX IPO be one of those occasions? It was valued at around 95 times 2025 sales when the only profitable bit of the business is providing an internet service.
Sure, Elon Musk could end up mining asteroids, but his xAI business isn’t exactly a market leader.
When stock market returns, particularly in tech, have been so spectacular for so many years, it may be wise to reduce one’s exposure, even at the risk of missing out on a few extra percentage points of gains.
And maybe it’s time to take a look at bonds again.
They’ve been overlooked for a long time now. And there’s always the possibility that the Federal Reserve under Kevin Warsh may soon be sounding less hawkish now that oil prices are coming down.
(This is a fortnightly column by David Morrison. He is a Senior Market Analyst at Trade Nation. Views are his own.)
Apple (AAPL) is facing another China concern after UBS said iPhone sales in the country fell 19% year over year in May, according to Seeking Alpha.UBS analyst D
In a rare move, Apple on Thursday raised prices on several of its best-selling products, including MacBooks and iPads.
[Photo: Michael Nagle/Bloomberg via Getty Images]
Here’s some news you don’t see every day: On Thursday, Apple raised the prices on several of its best-selling products, including Mac desktops, MacBooks, iPads, and HomePod devices. (See below for a listing of those products.)
Apple’s online store was down briefly Thursday morning before coming back online with updated prices. According to The Wall Street Journal, Mac computers are up by 15% to 20%, and iPads are up 15% to 25%.
What’s clearly missing from the lineup of price hikes is the iPhone, Apple’s most successful and profitable product.
Why the price hike? The company is citing an extraordinary surge in global AI-driven memory and storage costs.The move comes a week after outgoing Apple CEO Tim Cook told The Wall Street Journal that planned “price increases are unavoidable” and the tech giant was “doing [its] best to mitigate the huge increases that are being passed to us.” And although the company has been trying to shield customers, “the situation has become unsustainable,” he said.
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“This is a hundred-year flood,” Cook explained to the Journal. “I’ve never seen anything like it in any area in over 40 years.”
Microsoft also recently raised prices for its Surface laptops and announced Thursday that it was increasing the price of its Xbox game consoles starting August 1.
Shares of Apple Inc. (Nasdaq: AAPL) were down 5.2% in afternoon trading at the time of this writing. Shares of Microsoft Corp. (Nasdaq: MSFT) were down over 3%.
Apple AAPL shares tumbled more than 6% on Thursday, marking their sharpest single-day decline in over a year after the technology giant raised prices on several MacBook and iPad models amid rising component costs.
The price adjustments affected multiple products across Apple's hardware lineup. The entry-level MacBook Neo increased to $699 from $599, while the 512GB MacBook Air rose to $1,299 from $1,099. Apple also lifted the price of its 1TB MacBook Pro to $1,999 from $1,699.
Apple raised tablet prices as well. The iPad Air 128GB now costs $749 compared with $599 previously, and the iPad Pro Wi-Fi 256GB model increased to $1,199 from $999.
The company said escalating component expenses prompted the pricing changes and indicated additional increases could follow if cost pressures persist. The move highlights the challenges facing Apple as hardware production costs continue to climb.
Meta Platforms (NASDAQ:META | META Price Prediction) has slid hard in 2026, and that selloff has opened up a setup the model rates as one of the most attractive in mega-cap tech.
Our 24/7 Wall St. price target for Meta is $801.42 over the next 12 months, implying 47.63% upside from $542.87. The recommendation is a buy with high confidence at 0.9 on our 0 to 1 scale, driven by accelerating ad revenue, an expanding AI product stack, and a forward P/E that now sits in the mid-teens.
24/7 Wall St. Price Target Summary Metric Value Current Price $542.87 24/7 Wall St. Price Target $801.42 Upside 47.63% Recommendation BUY Confidence Level 90% A Brutal 2026 Has Reset Expectations Meta has been one of the year’s worst-performing megacaps. Shares are down 17.62% year to date, 11.27% over the past month, and 23.15% over the past year, sitting just above the $519.78 52-week low and well off the $793.65 high.
The selling has come despite a Q1 2026 report that posted $56.31 billion in revenue, up 33.08% YoY, with EPS of $10.44 against a $6.66 consensus. The bear narrative on Reddit is summed up by a viral r/wallstreetbets post titled “Satya and Zuckerberg are incinerating capital,” a reaction to the raised $125 to $145 billion 2026 capex range.
The Case for $865 and Higher Bulls have a clean thesis. Advertising is reaccelerating, with Q1 ad impressions up 19% YoY and price per ad up 12%. CFO Susan Li flagged that Instagram ranking changes drove a “10% lift in Reels time spent”, and the value optimization suite’s revenue run rate is “over $20 billion, more than doubling year over year.”
Mark Zuckerberg called Q1 a “milestone quarter” on the back of Muse Spark, the first model from Meta Superintelligence Labs. With 57 buy ratings against zero sells and a Street target of $827.32, our bull case scenario points to $865.18, or 59.37% upside.
What Could Go Wrong The bear case starts with capex. Meta raised 2026 capital expenditures to $125 to $145 billion, on top of $72.22 billion spent in 2025. Reality Labs continues to bleed, with a Q1 operating loss of $4.03 billion against only $402 million in revenue, and EU regulatory pressure plus 2026 youth-litigation trials remain unresolved.
It should be noted, however, that the Q1 EPS optically benefited from a $3.13 per share tax benefit. Stripping it out, underlying EPS of $7.31 still beat consensus, and management argues the capex is funding inference capacity that will monetize. Our bear scenario lands at $701.33, still 29.19% above the current price.
Meta Price Prediction 2026 to 2030 Stripping it down: Meta trades at a forward P/E of 18, generates a 41% operating margin, and is growing ad revenue at 33%. That combination at a discounted multiple is rare. The 24/7 Wall St. price target stays at $801.42 with a buy rating and high confidence.
The bull thesis hinges on management holding operating margins above 38% while the capex cycle peaks. The bear thesis centers on EU regulation or AI ROIC skepticism compressing the multiple further. The risk/reward at $542 is too asymmetric to ignore.
Year 24/7 Wall St. Price Target 2026 $801 2027 $960 2028 $1,150 2029 $1,360 2030 $1,589 These projections assume Meta continues converting AI infrastructure spend into ad pricing power and agent monetization. Material downside could come from regulatory rulings on EU ads or a sustained Reality Labs drag.
Lingyi iTech Guangdong rose in its Hong Kong debut after the Apple (AAPL) and Tesla (TSLA) supplier raised HK$8.3 billion, or $1.06 billion, in a share sale. Th
Image Credits:Getty Images Tesla has settled a lawsuit connected to a fatal 2023 crash involving a vehicle using the company’s advanced driver assistance system known as Full Self-Driving.
Bloomberg was first to report on the settlement. Terms were not disclosed.
The lawsuit was filed against Tesla and the driver by the daughter of Johna Story, a 71-year-old woman who was struck by a Tesla Model Y. Story was hit after she stepped out of her own vehicle to direct traffic around a crash that had occurred earlier due to sun glare.
The National Highway Traffic Safety Administration opened an investigation into Tesla’s FSD (Supervised) automated driving software in 2024 after four reported crashes in low visibility conditions — including the one involving Story. NHTSA said, at the time, it was investigating the driver assistance system to find out whether it could “detect and respond appropriately to reduced roadway visibility conditions,” such as “sun glare, fog, or airborne dust.”
That investigation was upgraded in March 2026 to an engineering analysis. In that report, the agency wrote “Available incident data raise concerns that Tesla’s degradation detection system, both as originally deployed and later updated, fails to detect and/or warn the driver appropriately under degraded visibility conditions such as glare and airborne obscurants.”
While the settlement ends the family’s lawsuit, this upgraded NHTSA investigation has not yet been closed. At stake for Tesla for the federal investigation is a host of possible outcomes, including a recall.
The federal agency also opened an investigation into FSD in October 2025 after receiving reports the software caused the vehicles to run red lights or cross into the wrong lane.
Coca-Cola (KO) may be off to a stronger start in its long-running IRS tax fight, with Piper Sandler saying courtroom signals looked supportive for the beverage
Our Coca-Cola (NYSE:KO | KO Price Prediction) call is straightforward: this is a quality compounder trading just below where our model says it should. The 24/7 Wall St. price target for KO is $90.07, implying roughly 12% upside from the current $80.42 price. The recommendation is buy, with a confidence level we’d characterize as high (90%).
24/7 Wall St. Price Target Summary Metric Value Current Price $80.42 24/7 Wall St. Price Target $90.07 Upside 12% Recommendation BUY Confidence Level 90% KO is the rare mega-cap where defensive characteristics (a 0.354 beta, 63 consecutive years of dividend hikes) are pairing with double-digit top-line growth. That combination, in our view, justifies multiple support rather than compression.
A Quiet 17% Rally That Caught Defensive Investors Off Guard KO is up 16.58% year to date and 18.79% over the trailing year, currently sitting just 3% below the 52-week high of $83.50. T
The catalyst was Q1 2026, reported April 28, 2026: EPS of $0.86 against a $0.812 consensus, revenue of $12.47 billion (up 12.07% YoY), and organic revenue growth of 10%. Operating margin expanded to 35% from 32.9% a year earlier. That marks four consecutive EPS beats under a CEO transition from James Quincey to Henrique Braun.
Why Bulls See a Breakout to $94 The bull case rests on margin expansion outrunning the divestiture drag. Coca-Cola Zero Sugar volume grew 13% across all geographies in Q1, Latin America revenue jumped 14%, and free cash flow is guided to roughly $12.2 billion in 2026.
Management is guiding 8% to 9% comparable EPS growth. With 19 buy or strong-buy ratings outstanding and a Street target of $85.97, a re-rate to 27x forward EPS would put KO at our bull-case price of $94.09, or a 17% total return.
What Could Go Wrong The bear case starts with the 4% acquisition/divestiture headwind from the pending Coca-Cola Beverages Africa sale, the 17% drop in Asia Pacific currency-neutral operating income, and ongoing IRS tax litigation. Insider activity skews to selling across 43 recent transactions, and JP Morgan’s 2026 outlook flags consumer staples as a sector that “may continue to struggle” against a deteriorating low-end consumer.
If multiples compress to 24x, the bear-case price drops to $80.34, essentially flat. Counterfactual: the insider sells are largely routine, and Q4 2025’s $960 million BODYARMOR impairment is a one-time non-cash charge that does not affect the cash-generation thesis.
I’d Buy It Here The 24/7 Wall St. price target of $90.07 reflects what I think is a fair read: KO is executing, growing organically at 10%, and returning capital aggressively (a $0.53 quarterly dividend and 2.57% yield). Confidence is high at 90%.
I’d be a buyer here if the African divestiture closes on schedule in H2 2026 and unlocks the comparison reset. I’d stay on the sidelines if Asia Pacific weakness spreads or organic growth slips below the 4% to 5% guidance floor. Net of all that, KO earns a buy.
Year 24/7 Wall St. Price Target 2026 $90.07 2027 $97.50 2028 $105.00 2029 $112.00 2030 $119.29 These projections assume KO compounds EPS in the high-single digits and the multiple holds near 25x. Significant upside could come from accelerated Coca-Cola Zero Sugar penetration; downside risk centers on a stronger dollar reversing the current 1% currency tailwind.
In a research note published Friday, Fuller reiterated a Buy rating and maintained a $100 price forecast, but argued that Uber’s growing list of autonomous vehicle (AV) partnerships has yet to meaningfully shift investor sentiment.
Waymo Remains The Clear LeaderAccording to BTIG estimates, roughly 4,100 robotaxis are currently providing paid rides across 11 U.S. cities. About 3,800 of those vehicles belong to Waymo, while only about 300 are spread across five competing AV platforms.
The firm estimates around 1,000 autonomous vehicles are available through the Uber app in the U.S. However, roughly 800 of those are Waymo vehicles, and about 500 are also accessible through the Waymo app.
That leaves Uber with only about 200 exclusive non-Waymo robotaxis, operating through Avride in Dallas and Motional in Las Vegas. BTIG does not expect Uber’s exclusive AV fleet to reach the thousands until 2027 or 2028.
Long-Term View Remains PositiveBTIG said it still sees a long-term path for a fragmented autonomous vehicle market, with multiple platforms, car owners and fleet managers using Uber as a demand aggregator.
However, the firm said that shift could take years, with Waymo still the dominant platform and visibility limited. Investors likely need to see other AV platforms scale and a much larger robotaxi fleet on Uber’s app before giving the company more credit for its U.S. rideshare business, BTIG said.
While Uber’s on-app robotaxi count may rise in the second half, BTIG does not expect thousands of exclusive non-Waymo vehicles until late 2027 or 2028, leaving few near-term catalysts.
The brokerage maintained its Buy rating and $100 price forecast, based on a 15-times multiple of its 2027 EBITDA estimate. BTIG expects Uber’s adjusted EBITDA to grow about 30% while continuing to benefit from expansion in mobility, delivery, advertising and Uber One memberships.
Uber Technical AnalysisUber stock rose nearly 3% on Friday, outperforming a weaker broader market. The Nasdaq fell 0.81%, while the S&P 500 slipped 0.16%.
Uber is rebuilding momentum above key moving averages. The stock traded about 4.9% above its 20-day simple moving average of $71.43 and roughly 2% above its 50-day SMA of $73.45.
However, shares remain about 8.1% below the 200-day SMA of $81.56 after falling 19.5% over the past 12 months.
The MACD indicator remains above its signal line, pointing to improving buying momentum. Even so, the longer-term trend remains under pressure following the 50-day SMA’s move below the 200-day SMA earlier this year.
Key resistance sits near $81, close to the 200-day SMA. Support is around $69, above the 52-week low of $67.19.
Uber Price ActionUBER Price Action: Uber Technologies shares were up 3.03% at $74.44 at the time of publication on Friday, according to Benzinga Pro data.
Image via Shutterstock
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of UBER, AMZN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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Stock to Watch: Alphabet (GOOGL - Free Report) Alphabet is one of the most innovative companies in the modern technological age. Over the last few years, the company has evolved from primarily a search-engine provider to cloud computing, ad-based video and music streaming, autonomous vehicles, healthcare and others. In the online search arena, Google has a monopoly with roughly 90% of the online search volume and market. Over the years, the company has witnessed increase in search queries, resulting from ongoing growth in user adoption and usage, primarily on mobile devices, continued growth in advertiser activity, and improvements in ad formats.
GOOGL is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.
Additionally, the company could be a top pick for growth investors. GOOGL has a Growth Style Score of A, forecasting year-over-year earnings growth of 32.3% for the current fiscal year.
17 analysts revised their earnings estimate upwards in the last 60 days for fiscal 2026. The Zacks Consensus Estimate has increased $2.64 to $14.30 per share. GOOGL boasts an average earnings surprise of +34.4%.
With a solid Zacks Rank and top-tier Growth and VGM Style Scores, GOOGL should be on investors' short list.
Key Takeaways Alphabet's ad revenues rose 15.5% to $77.25B in Q1 2026, helping lift total revenues by 22% to $109.9B. GOOGL expanded AI across ads, boosting relevance, Maps engagement and Smart Bidding performance. Alphabet deepened its Walmart partnership to improve ad targeting and measure online and in-store sales. Alphabet (GOOGL - Free Report) is benefiting from rising advertising revenues, which have become a key growth driver of its robust financial performance. In the first quarter of 2026, Google’s advertising revenues increased 15.5% year over year to $77.25 billion and accounted for 70.3% of total revenues.
The company’s consolidated revenues surged 22% year over year to $109.9 billion in the first quarter of 2026, marking the company’s 11th consecutive quarter of double-digit growth. The core of this momentum lies in Google Services, where advertising remains the dominant revenue stream. Google Search & other advertising revenues grew 19% to $60.4 billion, while YouTube ads contributed $9.9 billion, up 11% from the previous year.
A key driver behind this surge is Alphabet’s aggressive integration of advanced AI models, particularly Gemini, across its entire ads infrastructure. These AI enhancements have significantly improved ad relevance and user intent understanding, allowing Alphabet to match ads more precisely to user queries, even for longer, more complex searches that were previously difficult to monetize. In the first quarter of 2026, the company announced that Google Maps, with AI-driven improvements, has led to a nearly 10% increase in user engagement with promoted pins, while Smart Bidding powered by Gemini has enabled advertisers to achieve greater precision and performance.
Alphabet’s partnership with Walmart remains noteworthy. The company recently partnered with Walmart Connect to integrate Walmart’s first-party shopper audiences into Display & Video 360, starting with YouTube campaigns. Advertisers can now target high-intent Walmart shoppers and measure how video ads drive online and in-store sales through closed-loop measurement, improving campaign effectiveness and return on ad spend.
Alphabet’s leadership in AI and strong partnerships with major retailers and tech companies position the company for continued growth and further upside in the digital advertising market.
Alphabet Faces Tough CompetitionAlphabet is facing stiff competition from the likes of Reddit (RDDT - Free Report) and Meta Platforms (META - Free Report) . Both Reddit and Meta Platforms are expanding their footprint in the ad space.
Reddit is benefiting from strong demand in its advertising business, which has become a key growth driver of its impressive financial performance and future growth prospects. In the first quarter of 2026, Reddit reported total revenues of $663 million, up 69% year over year, with advertising revenues growing even faster at 74% to $625 million. This marks Reddit’s seventh consecutive quarter of revenue growth above 60%, underscoring the sustained momentum in its ad business.
Meta Platforms’ focus on integrating AI into its platforms, which include Facebook, WhatsApp, Instagram, Messenger, and Threads, is driving user engagement to boost ad revenues. In the first quarter of 2026, Meta's advertising revenues were $55.02 billion, up 33% year over year.
GOOGL’s Share Price Performance, Valuation & EstimatesAlphabet shares have risen 9.8% year to date, underperforming the broader Zacks Computer and Technology sector’s rise of 14.5%.
GOOGL Stock Performance
Image Source: Zacks Investment Research
GOOGL stock is trading at a premium, with a forward 12-month price/sales of 8.95X compared with the broader Computer and Technology sector’s 6.43X. Alphabet has a Value Score of D.
GOOGL's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $14.30 per share, which has increased by a penny over the past 30 days. This suggests 32.28% growth from 2025’s reported figure.
Alphabet currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Alphabet (GOOGL 0.62%) (GOOG 0.58%) historically has had no shortage of growth opportunities to direct its capital toward. That's why it never paid a dividend in the past, as management felt the cash was better suited to reinvest in the business. This philosophy changed in June 2024, when the company paid its first quarterly dividend of $0.20 per share. That payout is now $0.22 per quarter. But the low dividend yield of 0.25% isn't enough to compel income investors to buy this Magnificent Seven stock.
The situation looks a bit different now. Alphabet is investing so much to expand its artificial intelligence (AI) infrastructure that it has now tapped equity markets to raise fresh capital. As part of a nearly $85 billion raise, the company issued $16.75 billion of convertible preferred stock (GOOGM is the Class A equivalent, and GOOGN is the Class C equivalent). It offered a hefty 6.25% dividend yield at issuance.
That seems like a good deal, especially since the preferred stock comes from one of the most dominant tech companies. Before you rush to buy, read the fine print first.
Image source: The Motley Fool.
Sitting between bondholders and common shareholders Preferred equity is a hybrid security that mimics both bonds, because they have a fixed dividend, and equities, since they represent ownership. And on the capital structure, it sits between bondholders and common shareholders. If a company goes bankrupt and has to liquidate assets, preferred holders get paid out before common equity holders.
These investment products are catered to a specific type of market participant. Investors who want to earn yield and limit downside will find preferred equities attractive.
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Bullish investors should pass on this Alphabet's preferred stock isn't perpetual. Instead, it will convert to common shares on May 15, 2029. So, the 6.25% dividend yield will be active for only about three years. After that, investors can expect to receive the common stock's low 0.25% yield.
The conversion details can be confusing for average investors. Your decision to buy the preferred stock comes down to your forecast of where Alphabet's common shares will be in the future. If the stock price doubles in five years, which is a reasonable view given the company's impressive profit growth relative to its current valuation, then it makes sense to keep things simple and own the common shares.
On the other hand, if you believe Alphabet's common shares will be flat or decline over the next five years, then owning the preferred shares is interesting. There's income to be made.
For long-term investors, however, it's best to pass on this financial instrument. While the dividend yield draws a lot of attention, the fine print presents a more complex situation.
Amazon-backed AMZN Anthropic is getting a stronger read from Wells Fargo after recent checks showed its Fable 5 AI models are delivering notable coding improvements for customers, according to Seeking Alpha reporting.
Wells Fargo analysts said they spoke with 2 engineering leaders at AI startups who briefly tested Fable 5 and described a step function improvement in AI performance. Both said the higher return on investment was worth the higher token cost, which can easily top $100 an hour.
The key change appears to be autonomy. Wells Fargo said Fable 5 is much better at completing high-ROI, long-running coding tasks on the first try, compared with earlier models that often required multiple attempts and human and AI review. The checks also suggested Fable can work with less supervision than prior versions.
Hence, it's clear that Anthropic may be pushing the AI model conversation from raw benchmark scores toward real enterprise productivity. Fable 5 and Claude Mythos 5 are priced at $10 per 1M input tokens and $50 per 1M output tokens, making the next test whether customers keep paying premium prices for better coding performance.
Apple (NASDAQ: AAPL | AAPL Price Prediction) and Amazon (NASDAQ: AMZN) both posted record quarters, then collided with opposing forces: AI memory demand. Apple confirmed sweeping hardware price increases tied to a 20% “chipflation” tax, while Amazon collects rent on the data center buildout causing it.
Apple Sells the Device. Amazon Rents the Cloud. Apple’s March quarter was its best ever, with revenue of $111.184 billion and iPhone revenue of $56.994 billion on iPhone 17 demand. Tim Cook called it “our best March quarter ever”. Then reality intruded. Cook later said hardware increases were “unavoidable” as memory makers chase fatter AI server margins, with the base MacBook Air pushed to $1,299 and $1,300 added to high-end Mac Studios.
Amazon sits on the other end of that supply chain. AWS grew 28%, its fastest in 15 quarters, while the custom silicon business cleared a $20 billion annual run rate. Anthropic locked in up to 5 GW of Trainium, and OpenAI committed roughly 2 GW starting in 2027. Amazon profits from the same memory crunch squeezing Cupertino.
Business Driver Apple Amazon Main Growth Engine iPhone 17 hardware cycle AWS and custom AI silicon Exposure to Chip Costs Direct margin headwind Direct revenue tailwind Capital Strategy $100 billion buyback $200B AI capex reinvested Premium Consumer Retreat Meets Utility-Style Ecosystem Reddit is flagging pricing pain. A thread titled “Apple Raises Prices on Macs, iPads by $200 or More on Some Models” pulled 331 upvotes and dominated AAPL chatter into June 25. Apple raised upgrade costs at the exact moment investors want proof of mass-market AI device adoption.
Amazon’s playbook looks more insulated. Advertising crossed $70 billion TTM, Stores unit growth hit 15%, and Andy Jassy guided Q2 sales to $194 billion to $199 billion. The catch is cash. Q1 capex hit $44.203 billion and TTM free cash flow collapsed 95% to $1.2 billion. Reddit’s loudest worry, “Worried for hyperscalers…Overinvestment in data centres can cause a multiyear downturn,”, has merit.
The Next Test Is Whether Upgrades Hold I will watch whether higher Mac and iPad prices stall the holiday upgrade cycle. Polymarket already shows only a 28.8% probability AAPL closes June above $280, even with 96.1% confidence in an iPhone 18 launch. For Amazon, the question is margin durability against capex. Crowds give 94.8% odds capex tops $170 billion this year.
Why I Lean Toward Amazon Through This Memory Cycle For investors focused on defensive brand power and shareholder yield, Apple’s case remains intact. The Services line hit $30.976 billion, and that recurring stream cushions hardware volatility. I would rather be on the receiving end of chipflation than the paying end. Amazon’s 13.7% drawdown since earnings reflects capex anxiety while the underlying business remains healthy. If memory prices stay elevated into 2027, AWS and Trainium customers get stickier and Apple’s bill of materials gets heavier. I would change my view if Apple absorbed the cost hike without a demand hit, but early consumer reaction suggests that is unlikely.
Microsoft-backed (MSFT) OpenAI is reportedly facing new government pressure over the rollout of GPT-5.6, a powerful upcoming AI model that U.S. officials want r
NEW YORK, June 26, 2026 (GLOBE NEWSWIRE) -- The Gross Law Firm issues the following notice to shareholders of Microsoft Corporation (NASDAQ: MSFT).
Shareholders who purchased shares of MSFT during the class period listed are encouraged to contact the firm regarding possible lead plaintiff appointment. Appointment as lead plaintiff is not required to partake in any recovery.
ALLEGATIONS: The complaint alleges that during the class period, Defendants issued materially false and/or misleading statements and/or failed to disclose that: (a) Microsoft’s Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; (b) Microsoft’s flagship proprietary AI model ranked well below competitors on a number of benchmark tests; (c) Microsoft needed to increase by billions of dollars its capital expenditures and divert GPU and CPU capacity away from fulfilling demand for its profitable Azure services in order to improve the competitive positioning of its critical Copilot family of products and increase its AI-related R&D; and (d) as a result of (a)-(c) above, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and the Company’s Copilot offerings had lost market share to rival products, a trend that was increasing.
DEADLINE: August 11, 2026 Shareholders should not delay in registering for this class action. Register your information here: https://securitiesclasslaw.com/securities/microsoft-corporation-loss-submission-form/?id=190209&from=3
NEXT STEPS FOR SHAREHOLDERS: Once you register as a shareholder who purchased shares of MSFT during the timeframe listed above, you will be enrolled in a portfolio monitoring software to provide you with status updates throughout the lifecycle of the case. The deadline to seek to be a lead plaintiff is August 11, 2026. There is no cost or obligation to you to participate in this case.
WHY GROSS LAW FIRM? The Gross Law Firm is a nationally recognized class action law firm, and our mission is to protect the rights of all investors who have suffered as a result of deceit, fraud, and illegal business practices. The Gross Law Firm is committed to ensuring that companies adhere to responsible business practices and engage in good corporate citizenship. The firm seeks recovery on behalf of investors who incurred losses when false and/or misleading statements or the omission of material information by a company lead to artificial inflation of the company's stock. Attorney advertising. Prior results do not guarantee similar outcomes.
CONTACT:
The Gross Law Firm
15 West 38th Street, 12th floor
New York, NY, 10018
Email: [email protected]
Phone: (646) 453-8903
On June 26, the blue-chip technology giant Microsoft (NASDAQ: MSFT) received a sudden buy signal in the form of the legendary short trader, Michael Burry, making a long bet on the stock.
Specifically, the ‘Big Short’ investor revealed he has made a bullish MSFT bet by purchasing December 2028 LEAP call options that have a strike price in the low $700 range.
According to Burry, Microsoft stock has become attractive at roughly $350, but he decided to purchase derivatives on account of them being comparatively cheap.
Meanwhile, MSFT shares reacted immediately to the purchase from one of Wall Street’s most famous investors.
Indeed, Microsoft stock opened 4.09% in the green on Friday, June 26, erasing most of the losses it suffered since Wednesday. Still, the technology giant remains more than 11% in the red month-to-date, and an even more severe 22% down year-to-date (YTD).
Microsoft stock price one-week price chart. Source: Google Michael Burry portfolio performance in 2026 Elsewhere, despite the reputation Burry gained for his trading ahead of the Great Recession, his recent track record has been more mixed.
For example, the legendary investor’s long position in Lululemon Athletica (NASDAQ: LULU) remains in the red, and his bearish bet against the semiconductor giant Nvidia (NASDAQ: NVDA) has been teetering on the knife’s edge for weeks.
His bet against Palantir (NASDAQ: PLTR) – a bet he revealed to have partially covered at the same time he unveiled the MSFT long trade – has, on the other hand, been successful, and the software firm is down more than 33% in 2026.
Can Microsoft stock reverse its 2026 losses? Lastly, Michael Burry is far from the only prominent Microsoft bull. Despite the company’s struggles in the 2026 market, Wall Street has remained generally optimistic regarding its future.
Overall, MSFT stock is considered a ‘Strong Buy’ with a 51.88% forecasted rally to $562.10 in the next 12 months, per the data Finold retrieved from TipRanks on June 26.
Wall Street sets Microsoft stock price target for next 12 months. Source: TipRanks Furthermore, despite the volatility gripping the markets since the month started, Stifel Nicolaus’ Brad Redback is the only Wall Street expert to issue a ‘Hold’ recommendation for the equity in recent weeks. Furthermore, even the associated downgraded $400 price target estimates MSFT will rally from its press time price of $367.26 in the coming 52 weeks.
Featured image via Shutterstock
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SummaryMicrosoft Corporation has experienced a $1.3T market cap drawdown, the largest in its history, despite a generally bullish market.MSFT stock now trades at a forward earnings multiple of 21.7, near its 2022 buy levels, presenting a potentially attractive valuation.Recent concerns center on elevated FY26 capex guidance of $190B and significant exposure to OpenAI, which accounts for 45% of commercial RPO.Market sentiment has shifted as software faces AI disruption and OpenAI's reputation has diminished, intensifying scrutiny on MSFT's AI strategy.Looking for a helping hand in the market? Members of iREIT®+HOYA Capital get exclusive ideas and guidance to navigate any climate. Learn More »Sitewide Sale 2026: Get 20% Off Max Zolotukhin/iStock via Getty Images
Introduction Microsoft Corporation (MSFT) used to be a very easy stock to have in our portfolios. Remember when it traded to the low $200s during the 2022 bear market? That was such an easy buy that
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Analyst’s Disclosure: I/we have a beneficial long position in the shares of MSFT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
Advanced Micro Devices (AMD 2.25%) stock fell 2.9% through 10:55 a.m. ET Friday as worries mounted over the health of the artificial intelligence economy.
Worries that began this morning at OpenAI.
Image source: Getty Images.
OpenAI's words to the wise As The New York Times reports, OpenAI and its advisors are nervous after watching SpaceX (SPCX +3.06%) stock IPO to near-universal acclaim, rise rapidly for a few days -- and then abruptly U-turn south, losing $600 billion in market capitalization in a matter of days.
This reversal in sentiment surrounding SpaceX -- which started as a space company but is becoming ever more an artificial intelligence company -- has OpenAI CEO Sam Altman on edge, and wondering whether now is really the best time for another AI IPO. OpenAI's advisors are telling Altman he must choose: wait for a $1 trillion valuation and IPO in 2027, or IPO in 2026 and risk a lower valuation.
Altman really wants to secure a trillion-dollar valuation, though. For this reason, he's leaning toward postponing the IPO.
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What this means for AMD It's not 100% clear what this means for AMD. On the one hand, a delayed IPO would also delay a cash windfall for OpenAI -- which it would presumably spend on AI computing capacity and AI chips from AMD (and others).
On the other hand, OpenAI already signed a deal with AMD last year to buy tens of billions of dollars-worth of AMD chips over the next five years.
Investors don't seem too nervous about the effects of a delayed IPO, and comparing the length of the supply commitment (five years) versus the potential delay in OpenAI receiving IPO cash (less than one year), I suspect the risk to AMD's sales here is minimal. Today's 3% decline is probably more than enough to cover it.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices. The Motley Fool has a disclosure policy.
With the latest dip in the tech sector, several top growth stocks have fallen back to lows from two months ago. With nothing fundamentally changing with their long-term stories, this could be a great buying opportunity.
Let's look at three top growth stocks to buy while they are at multi-month lows.
1. Nvidia Even the king of AI infrastructure, Nvidia (NVDA 0.61%), has been caught up in the most recent tech pullback. This recent dip has left it at a very attractive valuation with a forward price-to-earnings ratio (P/E) of below 16 times fiscal 2028 (ending January 2028) analyst estimates. That's for a stock that just grew its revenue 85% last quarter and continues to have strong prospects.
Nvidia and its graphics processing units (GPUs) continue to dominate the market for AI model training, and given its wide CUDA software moat, which is where most initial foundational AI code was written, this is unlikely to change anytime soon. However, what is most exciting is how the company is positioned for the future, basically transforming itself from a simple GPU maker to a complete AI infrastructure player.
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Its networking segment has been its fastest growing, while it has also designed its own ARM-based central processing units (CPUs). Its "acquisition" of Groq has allowed it to incorporate its inference chips into its CUDA software. This now allows it to offer complete solutions not only for AI training, but also for emerging areas like inference and agentic AI.
The Nvidia growth story is far from over, making this dip a great buying opportunity.
2. Alphabet Alphabet (GOOGL 0.62%) (GOOG 0.58%) is another top tech stock trading near two-month lows. It recently was under some pressure after losing some AI talent, but this doesn't change the company's long-term story. Alphabet remains the company with the most complete AI stack, having both a world-class foundational AI model in Gemini and top-notch AI chips with its tensor processor units (TPUs).
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The company's cloud computing segment, Google Cloud, has been growing rapidly, with revenue surging 63% in Q1 2026. Simultaneously, its core search business has also seen accelerating growth, with revenue in this segment up 19% -- incorporating AI within Google Search has helped drive queries and strong growth.
The company's TPUs help give it a big cost advantage both in training its models and in running inference. It can also help provide higher margins within Google Cloud. And with Anthropic looking to buy some of its TPUs for use outside of Google Cloud, it also gives it another high-margin revenue stream.
With the stock trading at a forward P/E of around 24, now is a great time to buy.
Image source: Getty Images.
3. Amazon Another tech heavyweight that is trading below where it was two months ago is Amazon (AMZN +2.18%). The recent dip has left it with a forward P/E of just 27 times this year's analyst estimates and below 24 times next year's consensus. That is both historically cheap and also significantly below the valuations of its brick-and-mortar peers Costco and Walmart.
Despite the recent dip in its stock price, Amazon has been firing on all cylinders. It's seeing tremendous operating leverage in its e-commerce business as its investments in robotics and AI drive efficiency and cost savings. This led to a 43% increase in operating profit in its North American segment last quarter on a 12% rise in sales. The company's leadership in robotics, where it is the world's largest manufacturer and operator, is an often overlooked part of the company's story.
At the same time, the company has been seeing accelerating revenue growth in its AWS cloud unit, which is its largest segment by profitability. The company's chip business also helps give it a cost advantage, and partnerships with Anthropic and OpenAI should help continue to fuel growth well into the future. That makes this a stock to buy for the long term while it's currently down.
Geoffrey Seiler has positions in Alphabet and Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, Arm Holdings, Costco Wholesale, Nvidia, and Walmart. The Motley Fool has a disclosure policy.
AI stocks led by Nvidia (NVDA) are facing a sharper bubble warning after Chinese fund managers said the era of âbrainless buyingâ may be close to breaking,
Amazon (AMZN) is raising prices for GPU rental capacity on AWS, a sign that demand for AI computing power remains tight across key cloud regions, according to S
Finding core tech stocks to build a portfolio around can be a smart idea for investors. This sector has created the majority of value in the market for the past decade, and that will likely continue for the next decade as artificial intelligence (AI) innovations and breakthroughs occur.
Three that I think qualify for this segment are Alphabet (GOOG 0.70%) (GOOGL 0.64%), Microsoft (MSFT +4.77%), and Nvidia (NVDA 0.78%). Each of these looks like an excellent building block for a portfolio, and I think all will be a smart pick over the next decade.
Image source: Getty Images.
1. Alphabet Alphabet is first on my list for a good reason: It's the most solid of the three. Alphabet has a multi-pronged approach to AI, and its strategy so far has proven fairly solid.
First, it's integrating AI into its core Google Search product. This has made Google the go-to for quick AI-generated information on a topic, and it's a feature loved by the billions who use the product. Alphabet uses its own AI model to do this, leading to the second prong. Thanks to a strong generative AI model in Gemini, it can control its destiny with AI and its business.
Lastly, Alphabet has a thriving cloud computing wing, with Google Cloud growing faster than any of the major cloud providers in Q1. Google Cloud gives AI developers and companies a place to run AI workflows, so even if Alphabet's model doesn't come out on top, Google Cloud won't be a flop, either.
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This multifaceted approach has so far proven successful for Alphabet, and its stock has doubled over the past year. Still, there is more upside ahead for Alphabet if it can maintain its current growth pace, and I think it will be an AI force to be reckoned with for years to come.
2. Microsoft Microsoft's AI approach is very similar to Alphabet's, except that it isn't developing its own AI model. Instead, it has chosen to partner with OpenAI, the makers of ChatGPT. Microsoft owns about 27% of OpenAI, so it has a vested interest in its success. Microsoft's Azure cloud computing platform remains neutral and offers developers countless large language models to deploy and use. However, Microsoft has integrated OpenAI's products into all of its existing business productivity software via Copilot.
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This has been a successful approach so far, but the stock hasn't responded to Microsoft's results as it has with Alphabet's. Microsoft is down over 30% from its all-time high, and it looks like a screaming deal as the future is bright.
3. Nvidia Last is Nvidia, which may seem like an odd choice. Current market sentiment is that Nvidia's stock will decline once the AI build-out is wrapped up.
While that's a fair take, it ignores the fact that computing units in data centers have relatively short lifespans and need to be replaced every couple of years. Furthermore, Nvidia will likely keep innovating and developing new computing units with enhanced capabilities that can cut costs and improve performance, which could justify upgrading old systems.
Nvidia is interwoven into nearly every AI product, and it will remain a vital company in the industry long after the initial build-out is complete. However, the market isn't pricing any of that into Nvidia's stock.
NVDA PE Ratio (Forward) data by YCharts
The stock trades for a mere 22.3 times forward earnings, and less than 16 times next year's earnings. That's a major bargain that doesn't come around very often. With Nvidia being a core part of the AI build-out still expected to last for multiple years, the stock is a great buy now and a solid one to build a portfolio upon.
Nvidia stock NVDA fell again on Friday as a broader technology-sector selloff continued to pressure artificial intelligence stocks, leaving the chipmaker on track for its worst weekly performance in more than a year.
The stock declined about 1.5% to $192.35 in early trading. If losses hold through the close, Nvidia would finish the week down more than 9%, marking its steepest weekly decline since April 2025.
The latest pullback extends a difficult stretch for the company, which slipped below the psychologically important $200 level after recovering from an earlier decline in March 2026.
That support level broke earlier this week as concerns surrounding artificial intelligence spending and rising competition weighed on investor sentiment.
The broader market was mixed on Friday as investors assessed ongoing weakness across technology stocks.
The S&P 500 traded around the flatline, while the Nasdaq Composite fell 0.3%. The Dow Jones Industrial Average was little changed.
Semiconductor stocks remained under pressure as investors continued reassessing valuations across the AI sector after several years of extraordinary gains.
The selloff comes amid growing debate over whether the pace of AI infrastructure spending can be sustained and whether the massive investments being made by technology companies will ultimately generate sufficient returns.
Investor sentiment was also affected by a New York Times report that OpenAI is considering delaying its initial public offering until next year.
According to the report, concerns about volatility in AI-related stocks and the recent performance of newly listed SpaceX are among the factors being evaluated.
The report contributed to weakness across AI-linked companies as investors reassessed enthusiasm surrounding some of the market's most popular growth themes.
Competition concerns remain in focusAt the same time, Nvidia continues to face increasing scrutiny over its long-term competitive position.
While the company remains the dominant supplier of AI accelerators, investors have become increasingly focused on efforts by major technology firms to develop alternatives to Nvidia hardware.
Earlier this week, OpenAI and Broadcom unveiled a custom artificial intelligence chip called Jalapeño.
The processor represents OpenAI's first internally developed AI chip and is intended primarily for inference workloads, which involve serving AI models to users through products such as ChatGPT.
OpenAI President Greg Brockman said the chip was developed with assistance from the company's own AI models.
"The degree to which our models have been able to accelerate it was very surprising to us," Brockman said during an interview with CNBC's David Faber.
According to Brockman, the chip was designed from end to end in approximately nine months.
The announcement highlighted a broader industry trend as hyperscalers, AI laboratories, and major technology companies seek greater control over their computing infrastructure through custom silicon.
Despite growing competition, Nvidia remains at the center of the AI infrastructure market.
Its graphics processing units continue to power many of the world's largest AI systems, and customers have already committed to deploying the company's next-generation platforms.
However, investors are increasingly focused on whether Nvidia can maintain its dominant market share as custom chips gain traction and large customers diversify their hardware strategies.
For now, there is little evidence that Nvidia's business has been materially affected.
Nevertheless, the combination of elevated valuations, questions around AI spending, and growing competition has made investors more cautious.
That caution has left Nvidia searching for support after slipping below the $200 level, with the stock now facing one of its most challenging weeks since the AI-driven rally began.
Microsoft (MSFT), Nvidia (NVDA), Meta Platforms (META), and other major technology stocks have come under pressure in recent weeks as investors weigh the costs
Pension funds run on rules, not vibes. Every quarter, especially at half-year close, big institutional allocators check their books and realize the math has drifted. Stocks went up. Bonds did not. That mismatch forces a mechanical trade unrelated to whether the market is cheap, expensive, or about to discover artificial general intelligence in a garage.
The funds sell what got too big and buy what got too small. The Markets segment S&P to 8,000 This Year? flagged this dynamic for the back half of next week, putting a dollar figure on the flow and a date on the calendar. The host’s view is that forced selling creates a buying window. Understanding why that math exists, what the actual numbers look like heading into the rebalance, and how a patient investor might think about it matters.
Why $30 billion has to move The host put it directly. “There’s actually $30 billion of US stocks for sale attached to this pension rebalance,” with the selling concentrated on June 29th and June 30th, the final two trading days of the first half.
Pension funds operate under target allocations, often something like a 60/40 split between equities and fixed income, set by investment policy statements that boards take seriously. When stocks rip and bonds shuffle, the equity sleeve balloons past its target weight.
To get back to policy, the fund sells stocks and buys bonds. There is no discretion involved. A trustee who lets the portfolio drift gets sued. So at quarter-end, and with more force at half-year close, rebalancing trades fire automatically. The bigger the gap between stock and bond returns, the bigger the trade size.
The performance gap driving the trade This half, the gap is wide. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is up 7.4% year to date through June 25, and 20% over the past twelve months. Bonds have barely moved. The Vanguard Total Bond Market ETF (NASDAQ:BND) is up 1.01% YTD. The intermediate Treasury bellwether, the iShares 7-10 Year Treasury Bond ETF (NASDAQ:IEF), has returned 0.18% YTD.
A fund that started the year at policy weight is now meaningfully overweight equities and underweight fixed income. Multiply that drift across every major US public pension, corporate defined benefit plan, and target date fund family running quarter-end rebalancing programs, and you reach a flow estimate in the tens of billions.
The host’s $30 billion sits in the range of what street desks have circulated, and it is a seller of US equities into a market that has already wobbled. SPY is down 1.9% on the week and 2.2% on the month going into the rebalance window.
Why the host calls it a buying opportunity The case for fading the flow rests on a simple observation. Forced selling is mechanical, untethered from any view on fundamentals. A pension trimming equities on June 30 tells you nothing about Nvidia’s (NASDAQ:NVDA | NVDA Price Prediction) next quarter or the path of the fed funds rate. The trade is mechanical, the price impact is temporary, and once the rebalance clears, the marginal supply disappears. Historically, month-end and quarter-end pressure has tended to reverse within days as discretionary buyers step back in.
The host framed it that way. “I would not be surprised to see some early market weakness next week. That again could present a solid buying opportunity.”
Volume into the cash close on Monday and Tuesday is where the rebalance prints, and the size will show up in the closing imbalances reported by the exchanges. If stocks hold in the morning sessions and the selling lands cleanly into the auctions, the dip stays shallow. If macro headlines pile on top of the mechanical flow, the weakness lasts longer than the rebalance itself. The investment policy documents that drive all of this are public for most large public pensions and can be reviewed through their own disclosures and, where applicable, SEC filings for the asset managers running the mandates. The trade is boring on purpose. That is the entire point.
Key Takeaways Netflix is using AI to improve discovery, recommendations and conversational search for users.AI creator tools and a new mobile interface aim to boost content efficiency and engagement.Amazon and Disney are expanding AI capabilities, challenging Netflix's retention advantage. Netflix’s (NFLX - Free Report) aggressive AI strategy is emerging as a key differentiator that could strengthen user retention and help drive long-term revenue growth. The company has made AI one of its three strategic priorities, using generative AI to improve content discovery, personalize recommendations, test conversational search features and create higher-quality promotional assets. These enhancements are designed to help members quickly find relevant content, increasing engagement and reducing churn. Management also noted that its internal engagement-quality metric reached another record high in the first quarter, highlighting how a better user experience can translate into stronger retention.
Beyond improving content discovery, Netflix is leveraging AI to improve content creation. Its acquisition of InterPositive expands the company's suite of AI-powered filmmaking tools, enabling creators to produce content more efficiently while enhancing storytelling. Since content remains Netflix's largest investment, improving production efficiency could increase returns on content spending over time. The company is also rolling out an upgraded mobile interface featuring a vertical video discovery feed, further enhancing personalization and engagement.
Meanwhile, Netflix continues to expand AI beyond streaming. At its May 2026 Upfront event, the company introduced AI-powered advertising tools to help brands optimize campaigns, demonstrating how AI is also supporting its fast-growing advertising business. However, the long-term success of Netflix's AI initiatives will depend on consistently delivering engaging content and effectively implementing new AI features amidst fierce competition.
By combining AI-driven personalization, creator tools, product innovation and advertising capabilities, Netflix is strengthening engagement across its platform, supporting higher user retention and creating additional long-term monetization opportunities.
Netflix's AI Investments Face Powerful CompetitorsNetflix's AI-driven personalization for retention faces growing competition from Amazon.com, Inc. (AMZN - Free Report) , which leverages AWS AI, Bedrock and Alexa+ capabilities to enhance personalization, advertising and ecosystem engagement. While AMZN benefits from superior AI infrastructure, scale and investment capacity, it lacks Netflix's dedicated streaming focus. However, AMZN's broader monetization opportunities make it a formidable competitor.
The Walt Disney Company (DIS - Free Report) is strengthening its competitive position by expanding AI through hyper-personalized recommendations, interactive Disney+ and technology-led engagement to reduce churn. DIS combines premium intellectual property with cross-platform experiences, creating long-term opportunities beyond streaming. However, the company remains early in AI deployment, making execution and technology integration key challenges. Even so, its expanding AI capabilities and ecosystem strengths position DIS as a meaningful challenger to Netflix's established AI-driven retention advantage.
NFLX’s Price Performance, Valuation & EstimatesShares of Netflix have declined 24.4% in the year-to-date period compared with the broader Zacks Consumer Discretionary sector’s fall of 11%.
NFLX’s YTD Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, Netflix appears overvalued, trading at a trailing twelve-month P/S ratio of 6.5X, higher than the industry's 3.82X. NFLX carries a Value Score of D.
NFLX’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings is pegged at $3.60 per share, unchanged over the past 30 days and up by 2% over the past 60 days. This indicates a 42.29% increase from the previous year.
EPS Trend of NFLX Stock
Image Source: Zacks Investment Research
NFLX currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Netflix Inc. NFLX shares rose more than 5% on Friday, outperforming the broader market.
Investors assessed the streaming giant's growing investments in live sports programming and artificial intelligence initiatives as potential drivers of long-term growth and user engagement.
The S&P 500 gained 0.3% while the Nasdaq Composite was up 0.06%.
Investors appeared encouraged by Netflix's efforts to diversify beyond its traditional on-demand content model and create new opportunities for subscriber retention and monetization.
Netflix has increasingly embraced live sports rights after previously avoiding regular live programming.
The company has secured agreements covering WWE programming, Major League Baseball events and an expanded NFL package.
The NFL arrangement includes five games during the 2026 season and the NFL Honors show in February 2027.
The schedule includes a Week 1 matchup between the Los Angeles Rams and San Francisco 49ers in Australia on Sept. 10 and a Thanksgiving Eve game between the Green Bay Packers and Los Angeles Rams on Nov. 25.
It also features two Christmas Day games and an additional Week 18 contest.
Netflix's four-year partnership with the NFL runs through the 2029-2030 season, providing a recurring pipeline of live content across multiple months each year.
The company is also associated with a proposed Floyd Mayweather-Manny Pacquiao rematch scheduled for Sept. 19.
However, the event's status remains uncertain due to a lawsuit seeking to block the stream.
Investors have also been monitoring strategic developments after Netflix reportedly lost a $22 billion bidding contest for Roku.
Co-CEO Ted Sarandos described the effort as "muscle-building," while indicating that the company remains disciplined in evaluating acquisition opportunities.
Netflix has identified artificial intelligence as one of its three strategic priorities and is deploying the technology across several areas of its business.
The company is using generative AI to improve content discovery, personalize recommendations, test conversational search features and create promotional assets.
Management said its internal engagement-quality metric reached another record high during the first quarter, highlighting improvements in user experience and retention.
Netflix is also applying AI to content production. Its acquisition of InterPositive expanded the company's portfolio of AI-powered filmmaking tools aimed at helping creators produce content more efficiently while improving storytelling capabilities.
The company has also introduced an upgraded mobile interface featuring a vertical video discovery feed designed to further improve personalization and engagement.
Beyond streaming, Netflix is expanding AI into advertising.
During its May 2026 Upfront event, the company introduced AI-powered advertising tools intended to help brands optimize campaigns, supporting the growth of its ad-supported business.
Competition and technical challenges remainDespite Friday's gains, Netflix shares remain under pressure from a technical perspective.
The stock is trading 5.3% below its 20-day simple moving average, 12.71% below its 50-day moving average and 22.6% below its 200-day moving average.
A death cross that formed in December 2025, when the 50-day moving average moved below the 200-day moving average, continues to signal a longer-term downtrend.
Momentum indicators suggest the stock may be oversold. Netflix's relative strength index stands at 20.76, well below the threshold of 30 that often indicates stretched conditions.
Competition in AI-driven personalization is also intensifying.
Amazon.com is leveraging AWS AI, Bedrock and Alexa+ capabilities to strengthen personalization and advertising offerings, while Walt Disney is expanding artificial intelligence features across Disney+ and other services.
Even so, investors appear increasingly focused on whether Netflix's combination of selective live sports rights and expanding AI capabilities can strengthen engagement, reduce subscriber churn and create additional long-term monetization opportunities.
Key Takeaways Visa Destinations offers curated guides, exclusive experiences and travel benefits across 10 destinations.V aims to increase international card spending by connecting with travelers before they book trips.The platform supports Visa's long-term growth strategy despite limited expected near-term financial impact. Visa Inc.’s (V - Free Report) biggest strength lies in its vast global payments network and strong transaction volumes. Its latest launch, Visa Destinations, aims to build on that advantage. The mobile-first travel platform offers cardholders curated travel guides, exclusive experiences and special offers across 10 destinations, including New York, Paris, London, Dubai and Thailand. It also gives cardholders access to travel partners, merchants and exclusive Visa benefits.
The launch reflects Visa's strategy to expand beyond payment processing and play a bigger role in the travel journey. Rather than engaging consumers only at checkout, Visa is now reaching them earlier during the trip-planning stage. With global travel expected to continue growing in the coming years, Visa has more opportunities to engage travelers before and during their journeys.
By offering exclusive dining, cultural and entertainment experiences, Visa aims to encourage cardholders to use their Visa cards for international travel spending. International transactions usually generate higher revenues than domestic payments and remain an important growth driver for Visa. With travel spending projected to grow about 10% annually, the platform could also help Visa engage cardholders earlier in the booking process and support higher payment volumes from overseas travel.
While Visa Destinations is unlikely to have a material impact on near-term financial results, it strengthens the company's broader strategy of capturing higher-margin cross-border payment volumes. If successful, the platform could strengthen Visa's competitive position by driving greater customer engagement, higher card usage and long-term growth.
How Are Competitors Faring?Visa is not the only company expanding beyond payments. Key fintech peers, including Mastercard Incorporated (MA - Free Report) and PayPal Holdings, Inc. (PYPL - Free Report) , are also expanding through travel, digital commerce and AI-powered payment experiences.
Mastercard is also broadening its presence in the travel ecosystem. In March, Mastercard launched Lifestyle Navigator, an AI-powered travel concierge developed with MakeMyTrip's Myra. The platform offers personalized travel recommendations and exclusive experiences to enhance customer engagement.
PayPal is pursuing a similar strategy through AI-powered commerce. In June, PayPal partnered with Hey Savi to launch the U.K.'s first agentic commerce platform with native PayPal checkout, enabling shoppers to discover, compare and purchase products without leaving the app.
Visa’s Price Performance, Valuation & EstimatesOver the past year, shares of Visa have lost 5.2% compared with the industry’s 22.2% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, V trades at a forward price-to-earnings ratio of 23.02, well above the industry average of 17.09. V carries Value Score of D.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Visa’s fiscal 2026 earnings implies a 14.1% jump from the year-ago period’s level.
Image Source: Zacks Investment Research
Visa stock currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Remitly Global (RELY +4.25%) offers explosive growth in niche transfers, while Visa (V +2.22%) provides unmatched scale in global payments. Both companies shape how money moves, but which is the better buy?
Remitly focuses on personal international money transfers, often for immigrant communities sending funds home. Visa operates the world's largest payment network, facilitating trillions in transactions for banks and merchants. This comparison helps you decide between a maturing industry giant and an agile fintech challenger.
The case for Remitly GlobalRemitly Global facilitates international money transfers through its digital platform, primarily serving immigrant communities. The company operates in more than 175 countries and recently integrated with ChatGPT to let users compare exchange rates. Its business model aggregates millions of small transactions, so it does not rely on a single major customer for a significant portion of its revenue.
In FY 2025, revenue exceeded $1.6 billion, representing approximately 29% growth over the previous year. This growth helped the company achieve a net income of close to $67.9 million, resulting in a net margin of roughly 4.2%. This margin shows the percentage of revenue remaining after all expenses are paid, and the performance shows a significant swing toward profitability after the company reported net losses in prior years.
As of its December 2025 balance sheet, the debt-to-equity ratio is approximately 0.3x. This ratio compares total debt to shareholder equity, indicating the company uses relatively little debt to fund its operations among financial stocks. Free cash flow for the period was $295.7 million. Note that stock-based compensation (SBC) accounted for roughly 48% of operating cash flow, inflating reported cash generation, since SBC is a non-cash expense added back in the cash flow statement.
The case for VisaVisa operates a massive global network connecting billions of consumers with millions of merchant locations and approximately 14,500 financial institutions. The company generates revenue by facilitating digital payments rather than lending money directly. It recently expanded into stablecoin settlement and is working through a major $38 billion settlement with merchants regarding swipe fees that could impact future rules.
In FY 2025, revenue reached $40.0 billion, an increase of about 11% over the prior fiscal year. The company remains exceptionally profitable, reporting net income of nearly $20.1 billion. This resulted in a net margin of roughly 50.1%, one of the highest in the payments industry and reflecting the company's established dominance.
As of its September 2025 balance sheet, the debt-to-equity ratio is approximately 0.7x. Free cash flow for fiscal year 2025 was nearly $21.6 billion. Visa maintains a robust cash position while continuing to return capital to shareholders through regular buybacks and dividends, underscoring its strong cash-generating power. This consistent cash flow allows the company to invest in new technologies without relying on external financing.
Risk profile comparisonRemitly Global faces intense competition from traditional banks and digital-first providers, including The Western Union Company (WU +3.65%) and PayPal Holdings (PYPL +4.04%). Its business is highly sensitive to global regulations on money laundering and licensing, and any compliance failure could result in the loss of operating licenses. The company also relies on third-party processors to move money, meaning any disruption to those partnerships could halt service delivery. Cybersecurity remains a constant threat, as sophisticated attacks could harm its reputation or lead to financial losses.
Visa deals with heavy regulatory pressure globally, especially regarding the fees it charges merchants for transactions. Legislative changes could force the company to change its business model. Competition is also rising from real-time payment networks and competitors such as Mastercard (MA +2.72%) . Ongoing litigation, such as the massive merchant swipe fee settlement, highlights the legal risks that can lead to significant financial payouts and changes in how the company operates its network.
Valuation comparisonVisa trades at a lower earnings multiple than its smaller rival, but Remitly Global offers a much lower valuation when measured against its total annual sales.
MetricRemitly GlobalVisaSector BenchmarkForward P/E31.8x25.3x36.4xP/S ratio2.6x15.9xSector benchmark uses the SPDR XLK sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.
Both Remitly Global and Visa operate in the essential financial transaction market. Do you prefer the dominant payment network in the world or a fast-growing upstart?
Visa’s network handled $11.5 trillion of the estimated $41 trillion global consumer spend in 2025. It is essential in so many markets that even Remitly relies on it for getting funds into some Central American and Caribbean countries. Remitly’s share of global consumer spend is de minimis, which means it has significant blue-sky potential to grow its business.
Individual consumers are the majority of Remitly’s customers, while a new venture targeting business users is just getting off the ground. The cross-border business has been good for Remiotly’s core consumer. The company now offers 5,600 “corridors” for payments (for example, sending money between Yemen and Ireland would be one corridor). For fiscal 2026, revenue is expected to grow 20% to $1.97 billion with net income of $142 million, more than double that of 2025. Longer-term management sees AI, both integration with platforms and using the technology to lower costs, as key to greater growth.
Visa, meanwhile, is a behemoth but still sees ways to capture more of global consumer spending, given that about 65% of all transactions worldwide are still conducted in cash or by check. It has been acquiring regional payment transfer businesses and is rolling out AI-powered services for merchants to help them appeal to mobile-first and AI-focused consumers. Its sales should rise 14% for more than $45 billion this year. The expected net income of $23. 4 billion remains an astounding level of profit.
Both businesses are good and executing well. Visa’s sheer size and excellent profitability make it the better choice, given that its forward price-to-earnings ratio is lower than Remotely’s and the financial sector overall.
New analyses from the Phase 3 Vivacity-MG3 study support the impact of IMAAVY in anti-AChR+a, anti-MuSK+b adult patients with generalized myasthenia gravis (gMG) including those early in their disease, participants with lower symptom burden and those who experienced common infections To address an important evidence gap, the PETUNIAc study design will be presented – demonstrating the innovative way pregnancy outcomes data will be collected following treatment with IMAAVY IMAAVY, an immunoselective neonatal Fc receptor (FcRn) blocker, is designed to target and reduce pathogenic immunoglobulin G (IgG) autoantibodies associated with generalized myasthenia gravis (gMG) , /PRNewswire/ -- Johnson & Johnson (NYSE: JNJ) today announced new data across 12 abstracts at the European Academy of Neurology (EAN) 2026 Congress that offer additional insight into the use of IMAAVY® (nipocalimab-aahu) throughout clinically relevant points in the generalized myasthenia gravis (gMG) treatment journey. The analyses include adults with anti-AChRa or anti-MuSKb antibody-positive gMG who were early in their disease course or had lower baseline symptom burden – providing insight into the potential importance of addressing pathogenic immunoglobulin G (IgG) early in disease progression where use of advanced therapies may be less common.1,2 Additional research to be shared include outcomes shortly after common infections, which are a known cause of disease exacerbations in gMG, and plans to address evidence gaps in use of IMAAVY during pregnancy.3,4
"For many people living with generalized myasthenia gravis, achieving and maintaining sustained disease control is an important goal throughout the course of their disease, from the moment they are diagnosed and across the different stages of their journey," said Carlo Antozzi, M.D., Neurological Institute Foundation C. Besta of Milan, Italy.d "These post-hoc analyses add to the growing body of evidence on IMAAVY, which is designed to selectively target and bind the neonatal Fc receptor with high affinity, and reduce pathogenic immunoglobulin G autoantibodies associated with generalized myasthenia gravis."
Post-hoc analyses from the pivotal Vivacity-MG3 study in adults with antibody positive gMG (spanning anti-AChR+ and anti-MuSK+) will be presented which provide new insights that could inform clinical care including:
Patients early in their disease course (within five years of diagnosis) show improved outcomes: IMAAVY plus standard of care (SOC) showed greater reductions in MG-ADLe scores versus placebo plus SOC (-4.9 vs. -2.7) at Week 24, with a greater proportion of patients receiving IMAAVY also achieving the stringent measure of sustained meaningful clinical improvement (MCI)f for ≥20 weeks compared to placebo.1,5 IMAAVY is the only FcRn blocker evaluated to demonstrate sustained MCI over this duration in the double-blind phase of its pivotal study.5,g Patients with lower baseline symptom burden sustain MCI: IMAAVY plus SOC decreased symptom severityh and improved daily functioning at Week 24 versus placebo plus SOC (MG-ADL scores of -4.5 vs. -2.3).2 A greater proportion of patients receiving IMAAVY also achieved sustained MCI in this setting, adding further insights for healthcare professionals into the use of IMAAVY in patients with less severe disease.6,i Patients maintain control after contracting common infections: In the IMAAVY arm, observed symptom improvements were maintained within two weeks after patients contracted common infections, providing data on the use of IMAAVY after periods when the likelihood of disease exacerbations is elevated.3,j,k Safety and tolerability were consistent across all patients in the study and across other nipocalimab studies.7,8,9 The overall incidence of adverse events (AEs) was 84% in both the IMAAVY and the placebo arms and serious adverse events (SAEs) were 9% in the IMAAVY arm compared to 14% in the placebo arm.7,k
Ongoing evidence generation in gMG will also be highlighted, including:
Innovative PETUNIA study design: PETUNIA is designed to generate real-world safety data on pregnancy, maternal, and infant outcomes following exposure to IMAAVY during pregnancy.4 By leveraging prospective and retrospective reports the study aims to capture more detailed information on outcomes in this setting, helping to expand the evidence base beyond the traditional post-marketing safety monitoring requirements and support clinical decision-making in an area where current evidence is limited.4,c "People living with generalized myasthenia gravis often face unpredictable symptoms that can interfere with everyday life, underscoring the need for continued innovation grounded in disease biology," said David Lee, M.D., Ph.D., Global Immunology Therapeutic Area Head, Johnson & Johnson. "At Johnson & Johnson, we are committed to advancing research in autoantibody diseases to better understand the role of IMAAVY, an FcRn blocker designed to help address the underlying cause of generalized myasthenia gravis, while preserving humoral immune function. We are continuing to explore the potential of IMAAVY in supporting sustained disease control across key moments in patients' lives."
The full list of accepted Johnson & Johnson abstracts can be found HERE.
IMAAVY is approved for adult and pediatric patients (12 years of age and older) with anti-AChR or anti-MuSK antibody positive gMG by the U.S. Food and Drug Administration (FDA) and the European Medicines Agency (EMA).10,11
Editor's Notes:
a. Anti-AChR+= anti-acetylcholine receptor positive antibody.
b. Anti-MuSK+= anti-muscle specific tyrosine kinase positive antibody.
c. Pregnancy Enhanced Tracking with Neonatal and Infant Assessment (PETUNIA) is a post-marketing FDA requirement.
d. Dr. Carlo Antozzi has provided consulting, advisory and speaking services to Johnson & Johnson. He has not been paid for any media work.
e. MG-ADL (Myasthenia Gravis – Activities of Daily Living) provides a rapid clinical assessment of the patient's recall of symptoms impacting activities of daily living, with a total score range of 0 to 24; a higher score indicates greater symptom severity.12
f. The proportion of patients achieving a meaningful clinical improvement [MCI] is defined as a ≥2-point improvement in MG-ADL score at Week 24.1,2
g. At Week 24, patients diagnosed within five years who were treated with IMAAVY plus standard of care (SOC) achieved greater reductions in MG-ADL scores from baseline compared with placebo plus SOC (mean [SD]: −4.9 [2.88] vs −2.7 [2.46]; difference: −2.22 [standard error (SE): 0.76]; p=0.005).1
h. This is based on QMG (Quantitative Myasthenia Gravis) score which is a 13-item assessment by a clinician that quantifies MG disease severity through muscle weakness. The total QMG score ranges from 0 to 39, where higher scores indicated greater disease severity.12
i. At Week 24, patients with MG-ADL scores lower than 9 treated with IMAAVY plus SOC achieved greater reductions in MG-ADL scores from baseline compared with placebo plus SOC (mean [SD]: −4.5 [2.64] vs −2.3 [2.37]; difference: −2.23 [SE: 0.588]; p<0.001). Additionally, QMG reductions were also greater with IMAAVY plus SOC from baseline compared to placebo plus SOC (mean [SD]: −5.2 [4.45] vs −1.9 [3.69]; difference: −3.38 [SE:0.986]; p=0.001).2
j. Among patients who experienced an infection/infestation, the median (IQR) change from pre- to post-infection in MG-ADL scores was 0.0 (−1.0 to 1.0) with IMAAVY versus 1.0 (0.0 to 2.0) with placebo; in QMG scores, the median (IQR) change was 0.0 (−1.0 to 2.0) versus 1.0 (−1.0 to 1.0), respectively.3 Overall, infections/infestations were reported in 42.9% of patients in the IMAAVY group (71 events) and 41.8% in the placebo group (59 events).3
k. IMAAVY may increase the risk of infection, including serious infections. It is recommended to delay treatment in patients with active infection until resolution.10
ABOUT GENERALIZED MYASTHENIA GRAVIS (gMG)
Myasthenia gravis (MG) is an autoantibody disease in which the immune system mistakenly makes antibodies (e.g., anti-acetylcholine receptor [AChR], anti-muscle-specific tyrosine kinase [MuSK]), which target proteins at the neuromuscular junction and can block or disrupt normal signaling from nerves to muscles, thus impairing or preventing muscle contraction.13,14 The disease impacts an estimated 700,000 people worldwide.15 The disease affects both men and women and occurs across all ages and racial and ethnic groups, but it most frequently starts in young women and older men.15 Roughly 50% of individuals diagnosed with MG are women, and about one in five of those women are of child-bearing potential.16,17,18 Approximately 10 to 15% of new cases of MG are diagnosed in pediatric patients 12-17 years of age.17,19,20,21 Among juvenile MG patients, girls are affected more often than boys, with over 65% of pediatric MG cases in the U.S. diagnosed in girls.22,23,24
Initial disease manifestations are usually eye-related, but approximately 85% of MG patients experience additional advancements to the disease manifestations, referred to as generalized myasthenia gravis (gMG). 25,26,27,28,29,30 This is characterized by severe muscle weakness and difficulties in speech and swallowing.25,26,27,28,29 Approximately 100,000 individuals in the U.S. are living with gMG.31 Vulnerable gMG populations, such as pediatric patients, have more limited therapeutic options.32
ABOUT THE PHASE 3 VIVACITY-MG3 STUDY
The Phase 3 Vivacity-MG3 study (NCT04951622) was specifically designed to measure sustained efficacy and safety with consistent dosing in this unpredictable chronic condition where unmet need remains high.33,34,35 Antibody positive or negative adult gMG patients with insufficient response (MG-ADL ≥6) to ongoing SOC therapy were identified and 199 patients, 153 of whom were antibody positive, enrolled in the 24-week double-blind placebo-controlled trial.34,35 Randomization was 1:1, nipocalimab plus current SOC (30 mg/kg IV loading dose followed by 15 mg/kg every two weeks) or placebo plus current SOC. Baseline demographics were balanced across arms (77 nipocalimab, 76 placebo).35 The primary efficacy endpoint was the comparison of the mean change from baseline to Weeks 22, 23, and 24 between treatment groups in the MG-ADL total score.34 A key secondary endpoint included change in Quantitative Myasthenia Gravis (QMG) score.34 Long-term safety and efficacy were further assessed in an ongoing open-label extension (OLE) phase.
ABOUT IMAAVY® (nipocalimab-aahu)
IMAAVY is an immunoselective treatment designed to target, bind with high affinity, and block the neonatal Fc receptor (FcRn), reducing circulating immunoglobulin G (IgG) antibodies that drive disease while also preserving key immune functions.36,37,38 IMAAVY is currently approved for the treatment of generalized myasthenia gravis (gMG) in adults and pediatric patients 12 years of age and older who are anti-acetylcholine receptor (AChR) or anti-muscle-specific tyrosine kinase (MuSK) antibody positive.10
Nipocalimab is being investigated across three key segments in the autoantibody space including Rheumatologic diseases, Rare Autoantibody diseases, and Maternal Fetal diseases mediated by maternal alloantibodies, in which blockade of IgG binding to FcRn in the placenta is believed to limit transplacental transfer of maternal alloantibodies to the fetus.34,39,40,41,42,43,44,45,46,47
The U.S. Food and Drug Administration (FDA) and European Medicines Agency (EMA) have granted several key designations to nipocalimab including:
EU EMA Orphan medicinal product designation for hemolytic disease of the fetus and newborn (HDFN) in October 2019 and fetal and neonatal alloimmune thrombocytopenia (FNAIT) in April 2025 U.S. FDA Fast Track designation in HDFN, and warm autoimmune hemolytic anemia (wAIHA) in July 2019, gMG in December 2021, FNAIT in March 2024, Sjögren's disease (SjD) in March 2025, and systemic lupus erythematosus (SLE) in January 2026 U.S. FDA Orphan drug status for wAIHA in December 2019, HDFN in June 2020, gMG in February 2021, chronic inflammatory demyelinating polyneuropathy (CIDP) in October 2021 and FNAIT in December 2023 U.S. FDA Breakthrough Therapy designation for HDFN in February 2024 and for SjD in November 2024 U.S. FDA granted Priority Review in gMG in Q4 2024 and wAIHA in Q2 2026 The legal manufacturer for IMAAVY is Janssen Biotech, Inc.
IMPORTANT SAFETY INFORMATION
What is the most important information I should know about IMAAVY?
IMAAVY is a prescription medicine that may cause serious side effects, including:
Infections are a common side effect of IMAAVY that can be serious. Receiving IMAAVY may increase your risk of infection. Tell your healthcare provider right away if you have any of the following infection symptoms: fever chills shivering cough sore throat fever blisters burning when you urinate Allergic (hypersensitivity) reactions may happen during or up to a few weeks after your IMAAVY infusion. Get emergency medical help right away if you get any of these symptoms during or after your IMAAVY infusion: a swollen face, lips, mouth, tongue, or throat difficulty swallowing or breathing itchy rash (hives) chest pain or tightness Infusion-related reactions are possible. Tell your healthcare provider right away if you get any of these symptoms during or a few days after your IMAAVY infusion: headache rash nausea fatigue dizziness chills flu-like symptoms redness of skin Do not receive IMAAVY if you have a severe allergic reaction to nipocalimab-aahu or any of the ingredients in IMAAVY. Reactions have included angioedema and anaphylaxis.
Before using IMAAVY, tell your healthcare provider about all of your medical conditions, including if you:
ever had an allergic reaction to IMAAVY. have or had any recent infections or symptoms of infection. have recently received or are scheduled to receive an immunization (vaccine). People who take IMAAVY should not receive live vaccines. are pregnant, plan to become pregnant, or are breastfeeding. It is not known whether IMAAVY will harm your baby. Pregnancy Safety Study. There is a pregnancy safety study for IMAAVY if IMAAVY is given during pregnancy or you become pregnant while receiving IMAAVY. Your healthcare provider should report IMAAVY exposure by contacting Janssen at 1-800-526-7736 or www.IMAAVY.com. Tell your healthcare provider about all the medicines you take, including prescription and over-the-counter medicines, vitamins, and herbal supplements.
What are the possible side effects of IMAAVY?
IMAAVY may cause serious side effects. See "What is the most important information I should know about IMAAVY?"
The most common side effects of IMAAVY include: respiratory tract infection, peripheral edema (swelling in your hands, ankles, or feet), and muscle spasms.
These are not all the possible side effects of IMAAVY. Call your doctor for medical advice about side effects. You are encouraged to report negative side effects of prescription drugs to the FDA. Visit www.fda.gov/medwatch, or call 1-800-FDA-1088.
Please see the full Prescribing Information and Medication Guide for IMAAVY and discuss any questions you have with your doctor.
Dosage Form and Strengths: IMAAVY is supplied as a 300 mg/1.62 mL and a 1,200 mg/6.5 mL (185 mg/mL) single-dose vial per carton for intravenous injection.
ABOUT JOHNSON & JOHNSON
At Johnson & Johnson, we believe health is everything. Our strength in healthcare innovation empowers us to build a world where complex diseases are prevented, treated, and cured, where treatments are smarter and less invasive, and solutions are personal. Through our expertise in Innovative Medicine and MedTech, we are uniquely positioned to innovate across the full spectrum of healthcare solutions today to deliver the breakthroughs of tomorrow and profoundly impact health for humanity.
Learn more at https://www.jnj.com/ or at www.innovativemedicine.jnj.com.
Follow us at @JNJInnovMed.
Janssen Biotech, Inc. is a Johnson & Johnson company.
Cautions Concerning Forward-Looking Statements
This press release contains "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995 regarding product development and the potential benefits and treatment impact of IMAAVY. The reader is cautioned not to rely on these forward-looking statements. These statements are based on current expectations of future events. If underlying assumptions prove inaccurate or known or unknown risks or uncertainties materialize, actual results could vary materially from the expectations and projections of Johnson & Johnson. Risks and uncertainties include, but are not limited to: challenges and uncertainties inherent in product research and development, including the uncertainty of clinical success and of obtaining regulatory approvals; uncertainty of commercial success; manufacturing difficulties and delays; competition, including technological advances, new products and patents attained by competitors; challenges to patents; product efficacy or safety concerns resulting in product recalls or regulatory action; changes in behavior and spending patterns of purchasers of health care products and services; changes to applicable laws and regulations, including global health care reforms; and trends toward health care cost containment. A further list and descriptions of these risks, uncertainties and other factors can be found in Johnson & Johnson's most recent Annual Report on Form 10-K, including in the sections captioned "Cautionary Note Regarding Forward-Looking Statements" and "Item 1A. Risk Factors," and in Johnson & Johnson's subsequent Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission. Copies of these filings are available online at www.sec.gov, www.jnj.com, www.investor.jnj.com or on request from Johnson & Johnson. Johnson & Johnson does not undertake to update any forward-looking statement as a result of new information or future events or developments.
REFERENCES
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Johnson & Johnson (JNJ +3.39%) stock jumped 3.4% through 12:20 p.m. ET Friday after Guggenheim analyst Vamil Divan raised his price target on the already buy-rated stock to $270 per share.
Johnson & Johnson stock closed below $245 yesterday, suggesting Divan sees potential for the biopharmaceutical company to gain another 10.2% over the next 12 months. Add a 2.2% dividend yield, and that's a respectable 12.4% potential profit in a year.
Image source: Getty Images.
Why Guggenheim loves Johnson & Johnson stock Divan updated his numbers ahead of JNJ's Q2 earnings release due July 15. Going over the numbers, he predicts modest top- and bottom-line "beats" for the company, with revenue coming in around $25.5 billion and profits of perhaps $2.87 per share.
On guidance, Divan advises investors to focus on two key areas for JNJ: immunology and oncology. On the former, Tremfya, Caplyta, and Erleada prescriptions are doing better than expected, and he's thinking this trend could continue, especially for Tremfya (an anti-inflammatory).
In oncology, the names to watch are Darzalex, Carvykti, Tecvayli, and Talvey, as well as the more recently launched Inlexzo and SQ Rybrevant (for bladder cancer and non-small cell lung cancer, respectively). Johnson & Johnson's strong drug portfolio leads Divan to call it his "Top Pick" in large-cap biopharma.
Today's Change
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3.39
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How risky is Johnson & Johnson stock? Despite a modest price target and strong drug prospects, though, and I'm not sure I agree on that -- because of the valuation. JNJ stock trades at more than 28 times earnings, but most analysts forecast only a single-digit earnings growth rate over the next five years.
Strong free cash flow might help to change my mind, but in fact, JNJ's free cash flow looks relatively weak at only about 85% of reported earnings.
I don't see Johnson & Johnson stock as much of a bargain.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool recommends Johnson & Johnson. The Motley Fool has a disclosure policy.
Oppenheimer tech analyst Timothy Horan used a recent CNBC segment to lay out a bull case for SpaceX (NASDAQ:SPCX), arguing that the company’s edge in artificial intelligence justifies a price target well above where shares are changing hands today. SpaceX IPO’d roughly 2 weeks ago, and Oppenheimer’s $250 SpaceX price target puts physical AI squarely at the center of the long-term thesis.
The Physical AI Thesis and $250 Price Target Horan set a $250 price target on SpaceX, with the stock currently trading around $150 per share. According to Horan, that valuation is “largely based on what we think they can do in the AI world.” Shares slid about 15% over the past week from the $185 level.
Horan said robotics, autonomous vehicles, and machine-to-machine systems, including self-driving cars, trucks, trains, and aircraft, will be “one of the fastest areas of AI over the next 4 or 5 years.” SpaceX’s data advantage, drawn from Starlink’s global network and vehicle telemetry within the broader Musk ecosystem, positions the company to lead in both physical and digital AI workloads.
Starlink as SpaceX’s Primary Revenue Driver Horan believes Starlink will be the company’s primary initial revenue driver, followed by AI infrastructure, and then AI applications, with the latter two carrying higher growth and margins. He frames Starlink as a play on a roughly $2 trillion communications market, accessed through a planned mobile-service launch built on a hybrid satellite-and-terrestrial approach that he likens to the SiriusXM (NASDAQ:SIRI | SIRI Price Prediction) model.
That framing is similar to how other Wall Street investors view the platform. Defiance ETFs CIO Sylvia Jablonski recently argued that “investors are underestimating SpaceX by viewing it solely as an aerospace company,” calling it a multi-platform infrastructure company involved in launch, communications, defense, and AI connectivity, with Starlink poised to exceed expectations. Defiance has built its product lineup around that view, including the SPCU 2X leveraged ETF and the SPCQ inverse ETF.
The Tesla Merger Wildcard Horan also addressed merger speculation. A potential SpaceX-Tesla (NASDAQ:TSLA) combination could amplify the AI vision, in his view, but he expects it would take years as both companies raise capital and execute on standalone roadmaps. Tesla’s autonomy data and SpaceX’s connectivity and compute ambitions would be complementary, though for now investors should evaluate SpaceX on its own merits.
SpaceX’s IPO Performance SpaceX priced its IPO at $135 and traded as high as over $225 before settling lower. James Surowiecki, writing in The Atlantic, argued that SpaceX, Anthropic, and OpenAI are tapping public markets primarily to fund “the extremely expensive artificial intelligence race,” a backdrop that underscores why analysts like Horan are anchoring valuations on AI exposure rather than launch revenue alone.
Key Takeaways DAL raised its quarterly dividend to 21.50 cents per share from 18.75 cents.Delta Air Lines has more than doubled its quarterly dividend since reinstating payouts in 2023.Dividend-paying stocks are less susceptible to market swings and act as a hedge against economic uncertainty. Last week, Delta Air Lines, Inc. (DAL - Free Report) stated that its board of directors had announced an increase in its quarterly dividend payout, reflectingthe company’s commitment to boosting shareholder value, apart from underlining confidence in its business.
Dividend-paying stocks provide a solid income stream and have fewer chances of experiencing wild price swings. Dividend stocks are safe bets for creating wealth, as the payouts generally act as a hedge against economic uncertainty, like the current scenario.
Given this backdrop, the question that naturally arises is: Should investors buy, hold, or sell DAL stock now? A more in-depth analysis is needed to make that determination. Before diving into DAL’s investment prospects, let’s take a glance at its financial numbers.
DAL’s Recent Dividend Increase of 15%In a shareholder-friendly move, Delta Air Lines’ board of directors approved a dividend hike of 15%, thereby raising its quarterly cash dividend to 21.50 cents per share (86 cents annualized) from 18.75 cents (75 cents annualized). The raised dividend will be paid on July 30, 2026, to stockholders of record at the close of business on June 9, 2026. The move underscores DAL's strong financial position and robust cash-flow generation, highlighting its commitment to delivering value to shareholders.
Delta Air Lines has consistently increased its dividend since reinstating shareholder payouts in 2023, raising its quarterly dividend by 50% to 15 cents per share in 2024, followed by a 25% increase to 18.75 cents per share in 2025 and a further 15% hike to 21.50 cents per share in 2026. Overall, the quarterly dividend has more than doubled from its 2023 level, reflecting Delta Air Lines' strengthening financial position, robust cash-flow generation and commitment to enhancing shareholder returns. Such shareholder-friendly initiatives should boost investor confidence and positively impact the bottom line.
Apart from being shareholder-friendly, Delta Air Lines is benefiting from resilient travel demand, particularly in premium and international markets, which continues to support its revenue growth and cash generation. Delta Air Lines continues to invest in AI and data-driven tools to improve retailing and the customer experience. Delta Sync now supports logged-in experiences across onboard channels. Backed by a strong financial position, the airline remains well-positioned to continue rewarding shareholders through dividend growth and other capital-return initiatives.
DAL Stock’s Price PerformanceShares of DAL have gained 32.7% so far this year, outperforming the Zacks Airline industry’s 10.2% growth, as well as that of other industry players, American Airlines Group Inc. (AAL - Free Report) and United Airlines Holdings, Inc. (UAL - Free Report) ), within the same time frame.
DAL Stock's YTD Price Comparison Image Source: Zacks Investment Research
Headwinds Weighing on DAL StockThe ongoing conflict in the Middle East has led to a rise in oil prices, and airlines remain exposed because most U.S. carriers have abandoned broad fuel-hedging strategies. Delta Air Lines' June-quarter outlook assumes a fuel price of approximately $4.30 per gallon at the forward curve as of April 2, 2026. Management said that this adds more than $2 billion of additional fuel expense compared to the start of the year, partially offset by an expected refinery benefit of about $300 million.
Higher labor and recovery costs continue to bother airlines. Delta Air Lines' non-fuel cost base continues to move higher, led by wages and crew-related items. Salaries and related costs increased 8% in 2025 to $17.5 billion, reflecting wage increases, including for pilots. In the March quarter, non-fuel CASM (CASM-Ex) increased 6% year over year to 15.13 cents, with management citing higher recovery costs and the continuation of higher crew-related costs. These cost pressures are likely to hurt margin expansion, even when demand looks healthy.
Airline stocks’ market volatility continues to remain a concern. Management highlighted heightened volatility in fuel markets and is adjusting capacity with a downward bias until the fuel environment improves. With earnings sensitive to these external variables, DAL may not fit investors who are uncomfortable with sharp day-to-day swings in airline shares.
What Do Earnings Estimates Say for DAL?The negative sentiment surrounding DAL stock is evident from the fact that the Zacks Consensus Estimate for the second quarter of 2026 and the third quarter of 2026 earnings has been revised downward in the past 90 days. The consensus mark for 2026 and 2027 earnings has also been projected southward in the past 90 days.
The unfavorable estimate revisions indicate brokers’ lack of confidence in the stock.
Image Source: Zacks Investment Research
Unattractive Valuation Picture for DAL StockDelta Air Lines looks expensive from a valuation standpoint. Considering the forward 12-month price-to-sales ratio (P/S-F12M), DAL is trading at a premium compared to the industry.
The stock has a forward 12-month P/S-F12M of 0.92X compared with 0.63X for the industry over the past five years. The company’s forward 12-month P/S-F12M ratio is also above the median level of 0.53X over the past five years. These factors indicate that the stock’s valuation is unattractive.
DAL's P/S Ratio (Forward 12 Months) Vs. Industry Image Source: Zacks Investment Research
Not an Opportune Time to Buy DAL StockDelta Air Lines benefits from resilient demand for travel and a revenue mix that leans increasingly toward premium, loyalty and other higher-margin streams. Resilient travel demand, premium mix, loyalty partnerships, and technology-led personalization support revenue durability, cash generation, and strategic flexibility over cycles. Backed by a strong financial position, the airline remains well-positioned to continue rewarding shareholders through dividend growth and other capital-return initiatives.
Despite these positives, we advise investors not to buy DAL stock now due to the headwinds it continues to face, such as fuel price volatility, rising labor and recovery costs and macro uncertainty, which can pressure margins and amplify near-term earnings swings for shareholders. Share price volatility and unattractive valuation are concerning.
We, therefore, advise investors to wait for a better entry point. For those who already own the stock, it will be prudent to stay invested. The company’s current Zacks Rank #3 (Hold) justifies our analysis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways XOM has rallied 25.8% over the past year, ahead of EPD's 18.7% gain.Softer WTI oil prices are likely to pressure XOM's upstream business and bottom line.EPD's fee-based midstream assets help reduce exposure to commodity price volatility. Exxon Mobil Corporation (XOM - Free Report) and Enterprise Products Partners LP (EPD - Free Report) are two giants in the energy space. Over the past year, XOM has rallied 25.8%, outperforming EPD’s 18.7% gain. Does it mean that ExxonMobil is a better stock? Let’s delve deeper.
Image Source: Zacks Investment Research
Price is not the only parameter to underline the attractiveness of any stock, although it reflects investors’ preferences in every business phase. Hence, before coming to investment conclusions, we need to analyze the fundamentals and overall business environment of both companies.
Softer Oil to Hurt ExxonMobil’s Upstream BusinessWest Texas Intermediate (“WTI”) oil is currently hovering around $70 per barrel, according to data from Oilprice.com, significantly lower than the more than $100 per barrel reached in May this year, as the oil flows through the Strait of Hormuz are recovering, with shipping activity picking up again since the United States and Iran reached an interim deal last week. This is relatively hurting the upstream business of integrated energy players like ExxonMobil.
The advantageous assets in which XOM operates include the Permian, the most prolific basin in the United States, and offshore Guyana resources. Although the assets have cost advantages, softer oil prices are likely to lower the integrated energy giant’s bottom line, as upstream operations contribute the most to its earnings.
Enterprise Products’ Resilience Business ModelUnlike most energy players, Enterprise Products Partners’ business is not highly vulnerable to fluctuations in commodity prices.
This is because Enterprise Products Partners is a leading midstream player, and therefore, it has a resilient business model. EPD has a pipeline network that spans more than 50,000 miles, transporting oil, natural gas, refined products and other commodities. Thus, the partnership generates stable fee-based revenues from the midstream assets, irrespective of the volatility in commodity prices, as the assets are booked by shippers for a long term.
Due to the resilience of its business model, the partnership has been able to return capital to unitholders on an ongoing basis. Since its IPO, Enterprise Products has returned billions to unitholders through both repurchases and distributions.
EPD vs. XOM: Which Stock to Bet On?The softer oil pricing environment will likely hurt the exploration and production activities of XOM, although the energy major can lean on its strong balance sheet to sail through the relatively unfavorable business environment. XOM’s debt-to-capitalization of 15.4% is significantly lower than the industry’s 29.6%.
Image Source: Zacks Investment Research
Considering the valuation snapshot, it has become evident that investors are now willing to pay a premium for EPD over XOM, as they are probably preferring a stable midstream business model over upstream operations, especially in the softer oil pricing scenario. The overvaluation is reflected in the fact that Enterprise Products trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 11.29X, above XOM’s 9.13X.
Image Source: Zacks Investment Research
Thus, investors willing to avoid commodity price volatility and already invested in EPD can hold the stock, currently carrying a Zacks Rank #3 (Hold). Investors who like taking risks can continue to stay invested in XOM, which also has a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
SummaryFord remains a "Buy," supported by strong Q1 results, robust free cash flow, and a 4.25% dividend yield.Q2 guidance is upbeat, with adjusted EBIT raised to $8.5–$10.5 billion for FY 2026, reflecting cost reductions and high demand.Valuation is compelling: $1.75 normalized EPS and a 10x P/E yield a $17.50 price target, with technicals showing strong support near $13.Key risks include macroeconomic weakness, labor and raw material costs, and execution in the EV and AI segments. rangreiss/iStock Editorial via Getty Images
Ford (F) has been a significant winner over the past year. Up 41% from late June 2025, auto sales numbers have been decent, while the Detroit-based Consumer Discretionary sector company has made AI inroads.
I had a "Buy" rating on
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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.
For those looking to find strong Aerospace stocks, it is prudent to search for companies in the group that are outperforming their peers. Is GE Aerospace (GE - Free Report) one of those stocks right now? A quick glance at the company's year-to-date performance in comparison to the rest of the Aerospace sector should help us answer this question.
GE Aerospace is one of 67 companies in the Aerospace group. The Aerospace group currently sits at #1 within the Zacks Sector Rank. The Zacks Sector Rank considers 16 different groups, measuring the average Zacks Rank of the individual stocks within the sector to gauge the strength of each group.
The Zacks Rank is a successful stock-picking model that emphasizes earnings estimates and estimate revisions. The system highlights a number of different stocks that could be poised to outperform the broader market over the next one to three months. GE Aerospace is currently sporting a Zacks Rank of #2 (Buy).
Over the past 90 days, the Zacks Consensus Estimate for GE's full-year earnings has moved 0.5% higher. This shows that analyst sentiment has improved and the company's earnings outlook is stronger.
According to our latest data, GE has moved about 20.6% on a year-to-date basis. In comparison, Aerospace companies have returned an average of 3.3%. This means that GE Aerospace is outperforming the sector as a whole this year.
One other Aerospace stock that has outperformed the sector so far this year is Woodward (WWD - Free Report) . The stock is up 44.4% year-to-date.
For Woodward, the consensus EPS estimate for the current year has increased 9.7% over the past three months. The stock currently has a Zacks Rank #2 (Buy).
Looking more specifically, GE Aerospace belongs to the Aerospace - Defense industry, which includes 29 individual stocks and currently sits at #102 in the Zacks Industry Rank. This group has gained an average of 0.5% so far this year, so GE is performing better in this area.
In contrast, Woodward falls under the Aerospace - Defense Equipment industry. Currently, this industry has 37 stocks and is ranked #54. Since the beginning of the year, the industry has moved +11%.
Investors with an interest in Aerospace stocks should continue to track GE Aerospace and Woodward. These stocks will be looking to continue their solid performance.
Investors interested in Financial - Investment Management stocks are likely familiar with Affiliated Managers Group (AMG) and BlackRock (BLK). But which of these two stocks is more attractive to value investors?
Key Takeaways MCD plans to open about 1,000 restaurants in China this year despite softer consumer conditions.MCD's China market share held steady in Q1 as the company continued advancing its development agenda.MCD expects Q2 IDL comparable sales growth to slow amid Middle East and Asia market volatility. McDonald’s Corporation (MCD - Free Report) continues to position China as a long-term growth lever within its International Developmental Licensed (IDL) segment, even as near-term macroeconomic pressure remains a constraint. In the first quarter of 2026, IDL comparable sales increased 3.4%, driven by continued strength in Japan. While China remains challenged by softer consumer conditions, McDonald’s maintained market share and continued to advance its development agenda, with management reaffirming plans to open approximately 1,000 restaurants in the market this year.
The development commitment underscores management’s confidence in China’s long-term unit-growth potential. However, with macroeconomic pressure in China expected to persist, the benefit of new restaurant openings is more likely to support long-term system growth than provide an immediate offset to near-term IDL volatility.
The broader IDL outlook also remains uneven. McDonald’s expects second-quarter IDL comparable sales growth to decelerate from first-quarter levels, primarily due to volatility in the Middle East and some markets in Asia. Broader cost inflation and supply-chain uncertainty add another layer of pressure to the global operating backdrop.
Even so, McDonald’s retains several levers to defend segment performance. Its value focus, marketing scale and disciplined local execution should help support demand across international markets. China’s share stability points to sustained brand relevance despite weaker consumer conditions, while Japan’s continued strength provides a stabilizing factor for the segment.
Overall, China expansion is unlikely to fully offset near-term macro pressure across IDL markets. However, disciplined execution of the restaurant-opening plan, combined with continued share stability, could make China an important contributor to McDonald’s broader international growth strategy over time.
McDonald’s Competitive PositionYum! Brands, Inc. (YUM - Free Report) provides a relevant benchmark because it is also using franchise-led development and international scale to support growth in a volatile backdrop. In the first quarter of 2026, KFC opened 648 new stores, supported by a strong start in China and development across 45 countries. YUM also noted that the Middle East conflict has caused some uncertainty and short-term delays in select markets, but it does not expect a change to KFC’s development plans for the year.
Starbucks Corporation (SBUX - Free Report) offers another China comparison, as it is shifting toward a licensed structure while pursuing transaction-led recovery. In the second quarter of fiscal 2026, Starbucks China delivered positive comps, supported by transaction growth of more than 2%. The company also plans to expand its China footprint from more than 1,000 county-level cities today to more than 1,500 over the next three years.
Against this backdrop, McDonald’s positioning depends on whether China unit growth can translate into sustained share stability and stronger long-term IDL performance. Yum! Brands is leaning on franchisee strength and development momentum, while Starbucks is using local partnership and transaction-led growth to support China expansion. McDonald’s differentiation lies in its ability to pair disciplined China development with value, marketing scale and brand relevance.
SBUX’s Price Performance, Valuation & EstimatesShares of McDonald’s have declined 9.2% in the past year compared with the industry’s fall of 7.4%.
MCD’s One-Year Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MCD trades at a forward price-to-sales (P/S) multiple of 6.43, above the industry’s average of 3.30.
MCD’s P/S Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MCD’s 2026 earnings per share (EPS) implies a year-over-year increase of 6%. The EPS estimates for 2026 have remained unchanged in the past 30 days.
EPS Trend of MCD Stock
Image Source: Zacks Investment Research
MCD’s Zacks RankMCD stock currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
PepsiCo Inc (NASDAQ:PEP, XETRA:PEP) earnings outlook was trimmed by Bank of America analysts ahead of the company’s second quarter results, with softer-than-expected performance in its North American snacks business offsetting steadier international trends.
The analysts lowered their fiscal 2026 earnings per share (EPS) estimate to $8.61 from $8.65 and slightly reduced their second quarter forecast to $2.18 from $2.19. The revision reflects weaker performance at PepsiCo Foods North America (PFNA) and expectations that its recovery will take longer to materialize in the second half of the year.
For the quarter, Bank of America now expects consolidated organic sales growth of 2.9%, down from a prior estimate of 3.1%. The full-year organic sales growth outlook was also cut to 3.0% from 3.4%.
Despite the downward revisions, the analysts noted continued strength in international markets, which are now expected to deliver 5.4% organic sales growth in the second quarter, up from a prior forecast of 4.9%. They suggested PepsiCo could still reiterate its full-year guidance when it reports results on July 9, though the underlying mix of performance may be less favorable.
The primary pressure point remains PFNA, where scanner data indicated a sequential deterioration in trends during the quarter. NielsenIQ data showed retail sales growth slowing to a 1.0% decline in the second quarter from 0.6% growth in the first. Bank of America attributed the weakness to macroeconomic pressures, inflation, and unfavorable weather conditions around Memorial Day.
As a result, the analysts now expect flat organic sales growth for PFNA in the second quarter, compared with a previous estimate of 1.5%, and have reduced their full-year forecast to 0.2% from 1.4%. They also pointed to softer sequential performance across major brands including Lay’s, Doritos, Tostitos, Cheetos, and Ruffles.
In contrast, PepsiCo’s beverages division showed modest improvement. Retail sales in North America rose 0.3% year over year in the second quarter, while volumes fell 3.5%, an improvement from the prior quarter. However, analysts noted ongoing challenges for core brands, with Pepsi continuing to lose market share and Mountain Dew underperforming its category.
Bank of America also lowered its price objective on PepsiCo to $164 from $173, based on 18 times estimated 2027 earnings, down from a prior multiple of 19 times. Shares traded hands at about $142 on Friday afternoon.
The firm maintained its ‘Neutral’ rating on the stock.
Key Takeaways PayPal's Q1 2026 TPV rose 11% year over year to $464 billion, reflecting broad-based payment strength.Venmo TPV grew 14%, its sixth straight quarter of double-digit growth, led by deeper consumer engagement.PYPL saw faster PSP growth, stronger merchant retention and gains in debit, tap-to-pay and branded TPV. PayPal Holdings (PYPL - Free Report) reported stronger payment volume growth in the first quarter of 2026, with total payment volume (TPV) rising 11% year over year to $464 billion, or 8% on a currency-neutral basis. This double-digit increase reflects broad-based strength across the company’s payment ecosystem despite an increasingly competitive landscape.
A major contributor was the continued strength of Venmo. Venmo TPV grew 14% year over year, marking its sixth consecutive quarter of double-digit growth. Management highlighted Venmo’s momentum as a sign of deeper consumer engagement, supported by expanding debit card usage, Pay with Venmo and broader financial services opportunities.
Payment service provider (PSP) activity also supported growth. PayPal’s PSP volume accelerated to 11% from 7% in the second half of 2025, with Enterprise Payments growing in the mid-teens. The company benefited from stronger merchant retention, disciplined growth in profitable new business, and rising demand for payment processing and value-added services.
Branded experiences provided an additional layer of support. TPV from branded experiences increased 5%, driven by online checkout, PayPal and Venmo debit cards and tap-to-pay transactions. Although branded checkout growth remained modest at 2% on a currency-neutral basis, it improved from the prior quarter and showed early signs of stabilization.
Overall, PayPal’s payment volume growth appears to be driven by a combination of Venmo engagement, accelerating PSP performance, increased debit and tap-to-pay adoption and improving branded checkout trends. If PayPal can keep strengthening consumer value and merchant performance, double-digit TPV growth could remain an important part of its broader turnaround story.
How Block and Adyen Compare on Volume MetricsBlock Inc. (XYZ - Free Report) offers a comparable merchant payment metric through Square Gross Payment Volume (GPV). In Q1 2026, Square’s GPV grew 13% year over year to $61.2 billion, supported by stronger seller activity and higher payment volumes. Total GPV reached $63.1 billion. Management’s focus on disciplined execution helped Square maintain momentum despite competitive pressure.
Adyen (ADYEY - Free Report) uses processed volume as a key metric. In Q1 2026, processed volume increased 21% year over year to €382 billion, reflecting broad-based growth across global merchants. Net revenues grew 16%, or 20% at constant currency, helped by wallet share gains with existing customers and strong contribution from newer merchant cohorts.
PYPL’s Price Performance, Valuation & EstimatesShares of PayPal have declined 2.7% in the past three months, underperforming both the broader industry and the S&P 500 Index.
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From a valuation standpoint, PayPal shares are trading cheaply, as suggested by the Value Score of A. In terms of forward 12-month P/E, PYPL stock is trading at 7.66X, at a significant discount to the Zacks Financial Transaction Services industry’s 16.97X.
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PayPal’s estimate revisions reflect a negative trend. The Zacks Consensus Estimate for full-year 2026 EPS is pegged at $5.30, down by a cent over the past two months.
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PayPal currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
