This is a fair market value price provided by Massive. Learn more.
52-Week Range$282.00▼
$496.00Dividend Yield2.78%
P/E Ratio16.47
Price Target$412.97
Domino’s Pizza, Inc. NASDAQ: DPZ announced the retirement of Chief Executive Russell Weiner Monday afternoon, and investors weren't pleased.
The news sent the already struggling stock to a 52-week low and prompted several analysts to lower their price targets.
Get Domino's Pizza alerts:
The announcement comes as Domino's faces slowing sales growth and a reduced full-year outlook following a disappointing first quarter, raising the question of whether the CEO transition is a sign of deeper challenges ahead or an opportunity for the company to reinvigorate growth.
Company Taps Veteran Joe Jordan to Take Over CEO PostWeiner, who first joined the pizza chain in 2008 and took over as CEO in 2022, will retire at the end of September. He will be replaced by company veteran Joe Jordan, who will take the helm on Oct. 1.
Jordan has been with the company for almost 15 years, holding various roles, including marketing, operations, technology, and franchisee support. He is credited with helping to drive growth and innovation across the business, including overseeing the opening of more than 3,000 international stores and leading the relaunch of the loyalty and e-commerce platforms.
Executive Chairman David Brandon said the Board unanimously chose Jordan to serve as Domino's next CEO, calling him "uniquely qualified to guide the company through its next phase of growth."
The decision to elevate a longtime company insider suggests the transition may be aimed more at reigniting growth than pursuing a broader strategic overhaul.
In the press release announcing the change, Jordan said, "Domino's is one of the most innovative and resilient global systems in the restaurant industry and I am excited to build that foundation as we focus on reaccelerating growth and continuing to deliver delicious pizza and exceptional value to customers worldwide."
Weiner will transition to Executive Chairman Designate on Oct. 1 and assume the Executive Chairman role following the company's 2027 annual shareholder meeting. Brandon will retire and not stand for reelection to the Board in 2027, capping off 28 years of service.
CEO Change Follows Tough Q1, Lowered 2026 OutlookThe leadership change comes at a difficult time for Domino's, which reported weaker-than-expected first-quarter same-store sales on April 27, as consumer uncertainty, unfavorable weather, and increased competition hurt results.
During the Q1 earnings call, Weiner noted that "consumer sentiment hit COVID level lows," while rival pizza chains offered promotions that matched many of Domino's value deals.
Still, the quarter wasn't all bad. Revenue grew 3.5% year over year to $1.15 billion, order counts remained positive, and Domino's continued to gain market share in the United States. In addition, the company repurchased roughly 446,000 shares year to date through April 21.
Despite some bright spots, though, the softer-than-expected Q1 results prompted the company to revise its 2026 guidance. The company now expects global retail sales growth to be up mid-single digits for the year, compared with its previous forecast of around 6%. Operating income growth is projected to be mid- to high-single digits, compared with earlier guidance of approximately 8%.
Domino's isn't the only pizza chain facing headwinds. Last week, Yum! Brands NYSE: YUM announced plans to sell Pizza Hut in a pair of transactions valued at $2.7 billion after the chain struggled with declining same-store sales and operating profit. The move highlights the pressure facing the broader quick-service restaurant sector, particularly chains competing for value-conscious consumers.
Shares Hit a 52-Week Low After News of CEO ChangeDomino's stock, which began the year at around $417, had already been trending lower before the leadership announcement.
Following the disappointing first-quarter results and reduced outlook, shares fell to roughly $335. The stock continued to drift lower in the weeks that followed, and news of Weiner's retirement added to its decline.
Shares fell nearly 6% on Monday on above-average volume, even though the official press release was issued after the market closed. The stock dropped another 4% the following day, hitting a 52-week intraday low of $282.
Year-to-date, Domino's shares are down more than 30%.
Analysts Trim Targets But Still See Strong UpsideSeveral analysts lowered their 12-month price targets following news of the CEO change, adding to the 19 targets lowered after the Q1 earnings release.
Current Price$287.59High Forecast$544.00Average Forecast$412.97Low Forecast$290.00Domino's Pizza Stock Forecast Details
Even so, the average price target of roughly $413, more than 40% above the current price of $291, suggests analysts still see significant upside. The lowest target of $290 is roughly in line with the current share price, while the highest of $544 is more than 85% higher.
The consensus rating on the stock is a Moderate Buy, with 17 analysts assigning it a Buy rating, 12 a Hold, and one a Sell.
Not all investors share that optimism, however. At the end of May, around 3.5 million shares, or 10.7% of the float, were sold short, compared with 2.1 million shares, or 6.3% of the float, in mid-January.
While the leadership change comes at a challenging time, Domino's decision to promote a longtime executive suggests the move is aimed at restoring growth rather than responding to a crisis.
The next test for the company will come on July 20, when it reports second-quarter results. The results should provide a clearer picture of whether the first-quarter slowdown was a temporary setback or a sign of deeper challenges. They may also help investors determine whether this year's sell-off has created a buying opportunity or warrants further caution.
Should You Invest $1,000 in Domino's Pizza Right Now?Before you consider Domino's Pizza, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Domino's Pizza wasn't on the list.
While Domino's Pizza currently has a Moderate Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Enter your email address and we’ll send you MarketBeat’s list of ten stocks set to soar in Summer 2026, despite the threat of tariffs and what's happening in Iran. These ten stocks are incredibly resilient and are likely to thrive in any economic environment.
A Reddit post with two words pushed Wendy’s (NASDAQ:WEN | WEN Price Prediction) onto the most-mentioned list on WallStreetBets this week, an organic retail surge mostly dormant since the original meme-stock era. CNBC’s Brandon Gomez covered the rally on Closing Bell Overtime Wednesday, identifying three classic meme-stock ingredients (a beaten-down share price, significant short interest at 29% of float, and a company at the start of a strategic turnaround).
The price action lines up with the thesis. Shares ran 9% over the past five days, and one Reddit post celebrated an overnight pop of over 10%. The stock is down 36% over the past year and 67% over five years, with a market cap that has slumped toward roughly $1 billion. That compression makes WSB pay attention, especially when the brand selling Baconators is a household name with a cult Twitter account.
Why retail is staking out the trade Reddit sentiment has been running bullish for days. Across a 7-day window, sentiment scores on WSB and r/stocks sat in the 57 to 76 range, with a top post titled “Fixing Her: A Wendys (WEN) DD” drawing 722 upvotes and 231 comments. Another thread framed the contrarian pitch directly. “Wall Street sees risk. We see employee discounts.” Gomez’s read is that retail investors are motivated by both the heavy short positioning and a genuine desire to see the turnaround land.
The fundamentals cut both ways. Q1 2026 revenue of $540.64 million beat estimates while U.S. same-restaurant sales fell 7.8%, and U.S. company-operated restaurant margin compressed by 340 basis points to 11.4% on beef and labor pressure.
Net income dropped 42.1% year over year. Wendy’s reaffirmed full-year adjusted EPS guidance of $0.56 to $0.60 and adjusted EBITDA of $460 million to $480 million, per its Q1 8-K exhibit. The forward PE sits around 14, and the dividend yield is roughly 8.95%, which gives the value crowd something to chew on while WSB chases the squeeze.
The new CEO and the Peltz silence The turnaround narrative has a face now. Wendy’s tapped Bob Wright from Potbelly in May, returning to Wendy’s for the third time in his career, focused on a “menu and value-driven turnaround that reconnects with franchises.” Wright received 1,772,898 employee stock options and 118,110 restricted stock units on May 21, 2026, an incentive package weighted heavily toward share-price recovery. On April 3, 2026, directors Bradley Peltz and Peter May (a 10% owner) bought stock in the open market at $7.14, a small but voluntary tell.
Then there is the elephant. Nelson Peltz’s Trian, a top shareholder, declined to comment. Trian had recently filed an amended 13D flagging that it was exploring potential transactions, the kind of disclosure that tends to pull options volume forward. With a permanent CEO now in place and an activist still circling, the silence is doing a lot of work. Bradley Peltz, Nelson’s son, sits on the board and was one of the April buyers.
What to watch The Biggie value platform, upgraded premium burgers, new chicken sandwiches, and a new China franchise agreement for up to 1,000 restaurants over 10 years give Wright a story to tell. International systemwide sales grew 6.0% in Q1 2026, the bright spot in a quarter that included 146 global net restaurant closures. Analyst consensus targets sit near $7.84, with 16 holds against 4 buys and 5 sells, so Wall Street is not exactly piling in alongside Reddit.
You have the textbook checklist. High short interest, beloved legacy brand, a CEO with skin in the game, an activist who will not say a word, and a stock down more than half off its highs. Whether the WSB crowd holds the line or scrolls to the next ticker is the open question. Beef costs and weak U.S. traffic are not going to care either way.
The Zacks Electronics - Manufacturing Machinery industry players like Kulicke and Soffa Industries (KLIC - Free Report) , Ultra Clean Holdings (UCTT - Free Report) and Veeco Instruments (VECO - Free Report) are benefiting from massive investment in AI infrastructure. Hyperscalers and cloud providers are expanding data center capacity, driving demand for leading-edge logic chips, high-bandwidth memory (HBM), advanced packaging and optical networking solutions. As AI processors become more complex, advanced packaging technologies have become a major investment area. More advanced process technologies, heterogeneous integration, higher process intensity and sophisticated packaging require additional deposition, etch, annealing, bonding and metrology equipment. Strong growth in memory equipment demand bodes well for industry players.
Industry Description The Zacks Electronics - Manufacturing Machinery industry comprises companies that provide a range of solutions to address the needs of wafer processing facilities, as well as device packaging and test facilities, and semiconductor manufacturing processes. The solutions offered by the industry participants include thin-film processing systems, photonics, process-control tools (that perform macro defect inspections and metrology), metal-organic chemical vapor deposition, advanced packaging lithography, wet etch and clean, laser annealing, and 3D wafer inspection systems. A few industry participants also offer micro-contamination control products and advanced material-handling solutions. Contamination-free transportation, storage and delivery of materials have gained immense significance in recent times.
3 Trends Shaping the Future of the Electronics Industry Miniaturization Enhances Prospects: Industry participants are benefiting from the ongoing transition in semiconductor manufacturing technology. The demand for advanced packaging, which enables the miniaturization of electronic products, remains strong. The consistent shift to smaller dimensions, increasing complexity in transistor design and the rapid adoption of new device architectures, such as FinFET, 3D NAND and GAA, along with the increasing utilization of new manufacturing materials to increase transistor and bit density, are driving the demand for solutions provided by the industry players. Moreover, the emergence of techniques like wafer-level packaging is driving the need for a high-purity manufacturing environment free of contaminants. The rising demand for clean processing, as well as wafer carrier cleaning and conditioning tools, is a key catalyst for industry participants.
Complex Process Driving Demand: The requirement for faster, more powerful, compact and energy-efficient semiconductors is expected to increase rapidly with emerging applications, including AI, high-performance and cloud computing, smartphones, wearable technology, self-driving vehicles, the Internet of Things (IoT), gaming and virtual reality, and smart healthcare. Semiconductor manufacturers like Intel, Samsung and Taiwan Semiconductors are primarily looking to maximize manufacturing yields at lower costs. This is making semiconductor manufacturing processes more complex and driving the demand for solutions offered by industry participants. The rapid adoption of IoT-supported factory automation solutions is another contributing factor. The increasing deployment of 5G and the growing demand for edge computing are other key catalysts.
DRAM & HBM Demand Strong: Memory has shifted from being a bottleneck to a major investment opportunity. Memory manufacturers are expanding both greenfield fabs and existing facilities to increase AI server capacity. HBM is emerging as one of the strongest secular growth drivers due to its critical role in AI accelerators and high-performance computing. As GPUs become more powerful, memory bandwidth has become a key bottleneck, prompting memory manufacturers to aggressively expand HBM capacity. The broader DRAM market is also poised for sustained growth as AI applications require significantly larger memory capacity.
Zacks Industry Rank Indicates Bullish Prospects The Zacks Electronics - Manufacturing Machinery industry is housed within the broader Zacks Computer and Technology sector. It carries a Zacks Industry Rank #4, which places it in the top 2% of more than 250 Zacks industries.
The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates bullish near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than two to one.
The industry’s position in the top 50% of the Zacks-ranked industries is a result of the positive earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, analysts appear optimistic about this group’s earnings growth potential. Since Jan. 31, 2026, the industry’s earnings estimates for 2026 have increased 48%.
Given the positive industry outlook, there are a number of stocks worth buying. However, before we present the stocks you may want to consider for your portfolio, let us take a look at the industry’s recent stock-market performance and valuation picture.
Industry Beats Sector & S&P 500 The Zacks Electronics - Manufacturing Machinery industry has outperformed the broader Zacks Computer and Technology sector and the S&P 500 over the past year.
The industry has jumped 233.1% over this period compared with the S&P 500’s return of 23.4% and the broader sector’s appreciation of 37.1%.
One-Year Price Performance
Industry's Current Valuation On the basis of the trailing 12-month EV/EBITDA ratio, which is a commonly used multiple for valuing Electronics - Manufacturing Machinery companies, we see that the industry is trading at 42.52X compared with the S&P 500’s 18.23X. The industry is trading above the sector’s trailing 12-month EV/EBITDA of 19.7X.
Over the last five years, the industry has traded as high as 44.67X and as low as 4.03X, with the median being 12.7X, as the charts below show.
EV/EBITDA Ratio (TTM)
3 Electronics Stocks to Buy Right Now Kulicke and Soffa: This Zacks Rank #1 (Strong Buy) is riding on strong demand for Thermo-Compression Bonding (TCB). You can see the complete list of today’s Zacks #1 Rank stocks here.
Kulicke and Soffa expects TCB revenues to exceed $100 million in fiscal 2026. The company is expanding production capacity to support approximately $400 million in Advanced Solutions revenue, positioning KLIC to capitalize on the AI packaging cycle.
An expanding portfolio bodes well for Kulicke and Soffa’s prospects. Introduction of new solutions, including the Asterion-TW power semiconductor platform, ProMEM memory suite and advanced dispense products, is noteworthy. KLIC is increasing investments in hybrid bonding and panel-level packaging. These initiatives position the company to capture future demand across HBM, DRAM, power semiconductors and next-generation heterogeneous integration.
The Zacks Consensus Estimate for Kulicke and Soffa Industries’ fiscal 2026 earnings has been unchanged at $3.34 per share over the past 30 days. Shares have jumped 170.6% year to date.
Price & Consensus: KLIC
Ultra Clean Holdings: This Zacks Rank #1 company believes the semiconductor industry is in the early stages of a multiyear AI-driven expansion, supported by hyperscaler investments, leading-edge foundry logic, HBM and advanced packaging demand. UCTT expects momentum to strengthen through the second half of 2026 and into 2027 as customers increase wafer fab equipment spending and fab utilization.
Ultra Clean’s existing manufacturing network supports approximately $3 billion in annual revenues and can scale to roughly $4 billion with only modest incremental capital investment. As volumes rise, UCTT expects higher factory utilization, better operating leverage and continued margin expansion, supported by its UCT 3.0 operational strategy and digital transformation initiatives.
The Zacks Consensus Estimate for Ultra Clean Holdings’ 2026 earnings has climbed 4.7% to $2.46 per share over the past 30 days. Shares have skyrocketed 328.1% on a year-to-date basis.
Price & Consensus: UCTT
Veeco: This Zacks Rank #1 company continues to benefit from strong demand in advanced packaging, logic, memory and silicon photonics, with management highlighting sustained order momentum and increasing visibility into 2027. Veeco expects AI infrastructure investments to drive durable multiyear growth across its semiconductor portfolio.
Veeco secured more than $250 million in orders for MOCVD, wet processing and Ion Beam Deposition systems supporting indium phosphide laser manufacturing for AI data centers. Deliveries begin in 2026 and accelerate significantly in 2027, reinforcing the company's leadership in optical networking technologies as data centers transition from copper interconnects to optics.
The company is increasing manufacturing capacity for Advanced Packaging and Ion Beam Deposition systems while continuing to expand opportunities in HBM, EUV mask blanks, GaN power devices and advanced annealing. Veeco expects these technologies to drive meaningful served available market expansion through 2030, providing multiple long-term growth drivers beyond the current AI cycle.
The Zacks Consensus Estimate for Veeco’s 2026 earnings has been steady at $1.65 per share over the past 30 days. Shares have appreciated 149% year to date.
Outdoor Holding Company (POWW - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
The power of a changing earnings picture in determining near-term stock price movements makes the Zacks rating system highly useful for individual investors, since it can be difficult to make decisions based on rating upgrades by Wall Street analysts. These are mostly driven by subjective factors that are hard to see and measure in real time.
As such, the Zacks rating upgrade for Outdoor Holding Company is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
For Outdoor Holding Company, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Outdoor Holding CompanyFor the fiscal year ending March 2027, this company is expected to earn -$0.01 per share, which is unchanged compared with the year-ago reported number.
Analysts have been steadily raising their estimates for Outdoor Holding Company. Over the past three months, the Zacks Consensus Estimate for the company has increased 80%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Outdoor Holding Company to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
Even though momentum is a popular stock characteristic, it can be tough to define. Debate surrounding which are the best and worst metrics to focus on is lengthy, but the Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Outdoor Holding Company (POWW - Free Report) , a company that currently holds a Momentum Style Score of A. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Outdoor Holding Company currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for POWW that show why this company shows promise as a solid momentum pick.
A good momentum benchmark for a stock is to look at its short-term price activity, as this can reflect both current interest and if buyers or sellers currently have the upper hand. It is also useful to compare a security to its industry, as this can help investors pinpoint the top companies in a particular area.
For POWW, shares are up 5.42% over the past week while the Zacks Aerospace - Defense Equipment industry is down 0.09% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 11.96% compares favorably with the industry's 1.71% performance as well.
Considering longer term price metrics, like performance over the last three months or year, can be advantageous as well. Over the past quarter, shares of Outdoor Holding Company have risen 15.84%, and are up 81.39% in the last year. In comparison, the S&P 500 has only moved 12.56% and 22.2%, respectively.
Investors should also pay attention to POWW's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. POWW is currently averaging 785,479 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with POWW.
Over the past two months, 1 earnings estimate moved higher compared to none lower for the full year. This revision helped boost POWW's consensus estimate, increasing from -$0.05 to -$0.01 in the past 60 days. Looking at the next fiscal year, 1 estimate has moved upwards while there have been no downward revisions in the same time period.
Bottom LineTaking into account all of these elements, it should come as no surprise that POWW is a #1 (Strong Buy) stock with a Momentum Score of A. If you've been searching for a fresh pick that's set to rise in the near-term, make sure to keep Outdoor Holding Company on your short list.
It has been about a month since the last earnings report for Semtech (SMTC - Free Report) . Shares have added about 0.8% in that time frame, outperforming the S&P 500.
But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Semtech due for a pullback? Well, first let's take a quick look at its most recent earnings report in order to get a better handle on the recent drivers for Semtech Corporation before we dive into how investors and analysts have reacted as of late.
Semtech's Q1 Earnings Surpass Estimates, Revenues Increase Y/YSemtech Corporation reported better-than-expected first-quarter fiscal 2027 results. Semtech posted non-GAAP earnings of 51 cents per share, which beat the Zacks Consensus Estimate by 13.3%. The bottom line exceeded the management’s guidance of 45 cents (+/- 3 cents) and reflected a robust year-over-year improvement of approximately 34.2%.
Semtech beat on earnings in each of the trailing four quarters, the average surprise being 6.8%.
SMTC’s first-quarter fiscal 2027 revenues of $291 million topped the Zacks Consensus Estimate by 2.7% and came above management’s guidance of $283 million (+/- $5 million). The top line jumped 16% year over year, with solid growth across all of its end markets, particularly in data centers.
Semtech’s Q1 Revenues in Terms of End MarketsThe company’s top-line performance can be attributed to the impressive year-over-year rise in its end markets.
Sales from the infrastructure market totaled $98.8 million (33.9% of net sales), exhibiting year-over-year growth of 36%, supported by the expanding data center business. A key highlight was record data center net sales of $71.6 million, rising 39% year over year, reflecting continued strength in high-speed interconnect solutions.
Sales from the industrial market amounted to $153.9 million (52.9% of net sales), up 8% year over year.
Sales from the high-end consumer market totaled $38.4 million (13.2% of net sales), up 8% year over year, as the company cited resilience and continued design win momentum.
SMTC's LoRa Growth Adds Another EngineLoRa-enabled net sales were $44.5 million, up 12% sequentially and 14% year over year, reflecting broader adoption across smart utilities, smart buildings, smart cities and asset management.
The company is positioning its fourth-generation LoRa platform to expand use cases by combining dual-band capability with higher data throughput, while maintaining the low-power attributes that underpin long-battery-life deployments.
SMTC’s Q1 Revenues in Terms of Product LinesSignal Integrity (35.1% of net sales) sales totaled $102 million, up 38.8% year over year. Analog Mixed Signal & Wireless (34.6% of net sales) sales amounted to $100.8 million, which rose 11.3% year over year.
IoT System and Connectivity (30.3% of net sales) sales totaled $88.3 million, up 1.6% on a year-over-year basis.
Semtech’s Margins in DetailsThe non-GAAP gross margin of 53% contracted 50 basis points (bps) on a year-over-year basis and expanded 140 bps sequentially.
Non-GAAP operating income increased 24.6% year over year to $59.3 million. The non-GAAP operating margin expanded to 20.4% from 19% reported in the year-ago quarter. On a quarter-over-quarter basis, non-GAAP operating income increased 18.6%, while margin expanded 220 basis points.
Semtech’s Balance Sheet & Cash FlowAs of April 26, 2026, cash and cash equivalents totaled $163.3 million, down from $195.2 million as of Jan. 25, 2026.
The long-term debt amounted to $492 million, up from the previous quarter’s reported figure of $491.2 million.
During the first quarter, Semtech generated operating cash flow and free cash flow of $36.2 million and $28 million, respectively.
Semtech Initiates Q2 FY27 GuidanceFor the second quarter of fiscal 2027, Semtech expects net sales to be $328 million (+/- $5 million).
The non-GAAP gross margin is expected to be 54% (+/- 50 bps). The non-GAAP operating margin is anticipated to be 21.9% (+/- 40 bps).
Non-GAAP earnings are expected to be 61 cents (+/- 2 cents) per share.
How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates review.
The consensus estimate has shifted 12.27% due to these changes.
VGM ScoresCurrently, Semtech has a great Growth Score of A, though it is lagging a lot on the Momentum Score front with a C. However, the stock has a score of F on the value side, putting it in the fifth quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Semtech has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months.
Key Takeaways GE Vernova benefits from demand for power equipment tied to grid upgrades and electrification.GEV added 26 GW of generating capacity and energized 68 GW of power transformers in 2025.PEG invests in regulated grid and clean-energy assets, supporting stable returns and cash flows. GE Vernova (GEV - Free Report) and Public Service Enterprise Group (PEG - Free Report) are positioned to benefit from rising electricity demand and grid modernization. As economies become increasingly dependent on electricity for transportation, industrial processes, data centers, and digital technologies, utilities and power-equipment providers are expected to play a critical role in supporting the energy transition.
The comparison between the two companies is particularly relevant today because several powerful industry trends are driving investment across the electric-power ecosystem. Electrification of transportation and heating is increasing electricity consumption, while the rapid growth of artificial intelligence and data centers is creating significant new power demand.
At the same time, aging grid infrastructure requires substantial upgrades to improve reliability, integrate renewable energy, and support higher electricity loads. GE Vernova stands to benefit as utilities increase their purchases of equipment and technology, while PSEG benefits from deploying capital into regulated grid assets that earn long-term returns.
Let us compare the stocks' fundamentals to determine which one is a better investment option at present.
Factors Acting in Favor of GEV StockGE Vernova primarily supplies the equipment and technologies needed to generate, transmit, and manage electricity. Its portfolio includes gas turbines, wind turbines, grid solutions, and power software, allowing it to benefit from investments in new power-generation capacity and upgrades to transmission infrastructure. As utilities and independent power producers expand and modernize their systems, demand for GE Vernova's products and services could increase.
Recently, GEV released its 2025 Sustainability Report highlighting progress across its mission to "electrify the world to thrive and decarbonize." One of the most significant achievements was the addition of 26 gigawatts (GW) of new generating capacity during 2025. Nearly 47% of this capacity was deployed in developing and emerging economies, helping improve electricity access while supporting economic growth. The company also energized 68 GW of new power transformers, reinforcing its role in expanding and modernizing electric grids around the world.
Factors Acting in Favor of PEG StockPublic Service Enterprise is a regulated utility that owns and operates electric transmission and distribution networks, primarily in New Jersey. Rather than selling equipment, the company invests directly in utility infrastructure, including transmission lines, substations, grid reliability projects, and clean-energy initiatives. Because many of these investments are made within a regulated framework, PSEG typically earns a predictable return approved by regulators, providing relatively stable cash flows and earnings growth.
The company is also benefiting from rising clean energy investments across the United States as utility-scale solar, wind and storage projects continue to expand. To capitalize on this trend, its subsidiary PSE&G owned 158 megawatts (MW) of installed solar PV capacity across New Jersey as of Dec. 31, 2025. These initiatives strengthen PSEG’s commitment to providing cleaner, more reliable, and affordable energy while supporting long-term profitability.
How Do Zacks Estimates Compare for GEV & PEG?The Zacks Consensus Estimate for GE Vernova’s 2026 earnings per share (EPS) indicates growth of 72.92% year over year. GEV’s long-term (three to five years) earnings growth rate is 18%.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for Public Service Enterprise’s 2026 EPS implies growth of 7.9%. PEG’s long-term earnings growth rate is 16.09%.
Image Source: Zacks Investment Research
Valuation for GEV & PEGGEV shares trade at a forward 12-month price/sales (P/S F12M) of 5.87X compared with PEG’s P/S F12M of 3.21X.
Image Source: Zacks Investment Research
GEV & PEG’s Return on Equity (ROE)ROE measures how efficiently a company is utilizing its shareholders’ funds to generate profits. GE Vernova’s current ROE is 43.97% compared with Public Service Enterprise’s 12.3%.
GEV & PEG’s Price PerformanceIn the past six months, shares of GE Vernova and Public Service Enterprise have risen 61.5% and 1.5%, respectively.
Image Source: Zacks Investment Research
GEV or PEG: Which Is a Better Choice Now?GE Vernova is poised to benefit from growing investments in electricity infrastructure. The company continues to expand its role in supporting global electrification and grid development, particularly in regions seeking greater energy access and reliability. Public Service Enterprise invests directly in regulated electric transmission, distribution, and clean-energy infrastructure, generating stable and predictable returns through its utility operations. It is also positioning itself to benefit from the growing demand for reliable and sustainable electricity.
Our choice at the moment is GE Vernova, given its stronger ROE, better earnings growth and better price performance than Public Service Enterprise. Both GEV and PEG carry a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NuScale Power (SMR 0.34%), a developer of small modular reactors (SMRs) for nuclear power plants, went public through a merger with a special purpose acquisition company (SPAC) on May 3, 2022. Its stock opened at $10.70 per share on the first day, reached a record high of $53.43 on Oct. 15, 2025, but trades at just over $10 as of this writing. Let's see why NuScale's stock plunged, and if it could stabilize and recover in the second half of the year.
Image source: Getty Images.
Why did investors ignore NuScale? NuScale's SMRs can be installed in vessels that are only 65 feet tall and nine feet wide, making them much smaller than conventional nuclear reactors. They're prefabricated and assembled on-site to reduce the time, labor, and costs required to build a nuclear power plant.
NuScale's newest SMR only generates 77 MWe on its own, while conventional nuclear power plants usually generate over 1,000 MWe. However, NuScale's SMRs can be chained together to build smaller plants in areas that aren't well-suited for larger plants.
It's currently working with Fluor (FLR 0.51%) to deploy six of its 77 MWe reactors to construct a 462 MWe plant for Romania's RoPower. It also recently agreed to deploy up to six gigawatts of its SMR capacity across seven states for the Tennessee Valley Authority (TVA).
Today's Change
(
-0.34
%) $
-0.04
Current Price
$
10.18
Those plans sound promising, but NuScale doesn't expect any of its reactors in Romania and the U.S. to come online until the early 2030s. It repeatedly postponed its first deployments as inflation drove up its costs, challenging the bullish view that SMRs would be a cheaper, faster alternative to conventional reactors for the booming AI market. It also faces intense competition from companies like Oklo (OKLO 3.90%), which are developing even smaller microreactors.
NuScale's constant delays sparked class action lawsuits, and Fluor -- which owned over half of its shares before its public debut -- liquidated its remaining shares this year. Over the past three months, its insiders sold 460 times as many shares as they bought.
Will NuScale's stock bounce back? NuScale will generate most of its revenue from its front-end engineering and design (FEED) studies, licensing fees, and consulting work until it deploys its first commercial SMRs.
For 2026, analysts expect its revenue to rise 79% to $56 million, while narrowing its net loss to $164 million. For 2027, they expect its revenue to more than triple to $173 million with a slightly wider net loss of $171 million. That growth trajectory would be impressive, but it's already priced for perfection at 63 times this year's sales. That high valuation will limit its upside potential as long as the messy macro environment drives investors away from speculative growth stocks.
The nuclear renaissance reached a major milestone in the commercialization of small modular reactors (SMRs). Elementl Power announced it is developing a utility-scale advanced nuclear power project in Southeast Ohio, selecting GE Vernova’s (GEV) BWRX-300 SMR technology for the site.
Key Takeaways Elementl Power is deploying GE Vernova’s BWRX-300 SMR for a new utility-scale advanced nuclear power project in Ohio. BWXT’s mPower reactor is gaining traction across both terrestrial and maritime applications via partnerships with Applied Atomics and Core Power. The accelerating commercial adoption of SMR technology provides a fundamental growth driver for the Range Nuclear Renaissance ETF (NUKZ). How New Advanced Nuclear Power Projects Secure Terrestrial & Floating Contracts This commercial momentum is expanding into diverse industrial applications outside traditional utility grids. BWXT’s (BWXT) mPower SMR technology is capturing significant market share across both land and sea environments. Applied Atomics is currently advancing the reactor’s licensing for land-based applications, while marine energy developer Core Power has launched an assessment to use the mPower design for floating nuclear power plants.
These concurrent developments highlight a critical inflection point for the global energy supply chain. Advanced nuclear power projects are securing corporate commitments that validate the economic viability of next-generation reactors. Consequently, for investors looking to position portfolios for this structural shift, tracking these industrial components is important.
Capturing the Nuclear Supply Chain via Index ETFs The accelerating adoption of SMR designs directly impacts targeted investment vehicles like the Range Nuclear Renaissance ETF (NUKZ). The fund tracks the VettaFi Nuclear Renaissance Index (NUKZX), which provides exposure to companies across the nuclear energy ecosystem, including hardware providers and fuel suppliers.
As components like GE Vernova and BWXT secure these foundational contracts, their positions within the sector underscore the benefits of an index-based strategy. Rather than taking on single-stock technology risk or picking individual reactor winners, advisors can use NUKZ to gain diversified exposure to the entire supply chain necessary for this global nuclear expansion.
Looking for nuclear insights in your inbox? Subscribe here to keep a pulse on nuclear investing through our weekly research. For more news, information, and analysis, visit the Nuclear Energy Content Hub.
vettafi.com is owned by VettaFi LLC (“VettaFi”). VettaFi is the index provider for NUKZ, for which it receives an index licensing fee. However, NUKZ is not issued, sponsored, endorsed, or sold by VettaFi. VettaFi has no obligation or liability in connection with the issuance, administration, marketing, or trading of NUKZ.
Key Takeaways D-Wave unveiled an error-aware gate-model quantum simulator to advance fault-tolerant computing.D-Wave targets 100 logical qubits and 1M successful operations by 2032 using dual-rail architecture.D-Wave's simulator supports up to 21 qubits with error detection and real-time control tools. D-Wave Quantum (QBTS - Free Report) , or D-Wave, recently announced its forthcoming gate-model quantum computing simulator, a move that expands its gate-model roadmap designed to accelerate the development of commercial, fault-tolerant quantum computing. Detailed at the inaugural Investor Day earlier this month, the roadmap targets 100 logical qubits capable of successfully performing over 1 million operations by 2032 through scalable superconducting dual-rail architecture and quantum error correction.
The stimulator is expected to be the first of its kind designed for error-aware programming, with access scheduled to begin in September 2026. Built around D-Wave’s dual-rail technology, it is designed to give developers greater visibility into errors, helping them design applications and workflows that respond to real processor behavior.
By combining error detection and real-time control, the simulator will give developers new tools and data to better understand quantum behavior, prototype quantum applications and error-correction routines and explore more advanced workflows.
Once available through D-Wave's Leap cloud platform, the simulator will offer a quantum programming toolkit with error-aware capabilities, including tools for modeling quantum processor behavior, error detection and real-time control. It will support up to 21 qubits, include ideal and hardware emulation modes, Monte Carlo simulation of real-time quantum system dynamics and integration with familiar development tools, including the company’s Ocean SDK.
D-Wave also plans to introduce quantum development bundles that will provide access to its forthcoming gate-model quantum simulator and systems. These will include Starter and Premium packages, with monthly access allocations and guidance from D-Wave’s expert team. The company says the bundles are designed to support a range of customer needs, from initial exploration to more advanced research and development.
Updates From QBTS PeersQuantum Computing Inc. (QUBT - Free Report) or QCi announced the completion of acquiring NHanced Semiconductors, Inc. for a combination of cash and QCi stock valued at $73.1 million, subject to customary adjustments, and up to an additional $72.0 million if certain performance targets are achieved. The acquisition marks an important step in QCi’s transition from research-driven innovation and prototyping to scalable commercial production. By adding semiconductor and nanophotonics fabrication capabilities, advanced packaging expertise and specialized engineering talent, QCi is strengthening its operational capabilities and manufacturing readiness.
C3 AI (AI - Free Report) announced that Shell Information Technology International B.V. is extending its long-standing collaboration with the company across its global operations. C3 AI has worked with Shell since 2018 to deploy and operate an enterprise-scale predictive maintenance program. Under a new multi-year agreement, Shell will extend its deployment of C3 AI Reliability to enhance its operations, extending predictive maintenance capabilities beyond equipment anomaly detection.
QBTS’ Price Performance, Valuation & EarningsIn the past three months, QBTS shares have risen 58.6%, far above the industry’s 4.8% growth.
Image Source: Zacks Investment Research
D-Wave is trading at a forward, five-year Price/Sales (P/S) of 130.99X, significantly higher than its median and the industry average.
Image Source: Zacks Investment Research
Estimates for D-Wave’s 2026 and 2027 loss per share have steadily narrowed over the past 90 days.
Image Source: Zacks Investment Research
D-Wave currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bitcoin extended its selloff on Wednesday, dropping more than 5% in 24 hours to about $59,360, a move that left the token down roughly 10% over the past week an
Ambev (ABEV - Free Report) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.
A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for Ambev is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.
For Ambev, rising earnings estimates and the consequent rating upgrade fundamentally mean an improvement in the company's underlying business. And investors' appreciation of this improving business trend should push the stock higher.
Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for AmbevThis beverage company is expected to earn $0.21 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Ambev. Over the past three months, the Zacks Consensus Estimate for the company has increased 11.7%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Ambev to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Sandisk (SNDK) shares jumped about 15% early Thursday after Citi raised its price target on the flash-storage maker and pointed to stronger demand trends follow
Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the "long context," investors will essentially be "buying high, but hoping to sell even higher." And for investors following this methodology, taking advantage of trends in a stock's price is key; once a stock establishes a course, it is more than likely to continue moving in that direction. The goal is that once a stock heads down a fixed path, it will lead to timely and profitable trades.
While many investors like to look for momentum in stocks, this can be very tough to define. There is a lot of debate surrounding which metrics are the best to focus on and which are poor quality indicators of future performance. The Zacks Momentum Style Score, part of the Zacks Style Scores, helps address this issue for us.
Below, we take a look at Sandisk Corporation (SNDK - Free Report) , a company that currently holds a Momentum Style Score of B. We also talk about price change and earnings estimate revisions, two of the main aspects of the Momentum Style Score.
It's also important to note that Style Scores work as a complement to the Zacks Rank, our stock rating system that has an impressive track record of outperformance. Sandisk Corporation currently has a Zacks Rank of #1 (Strong Buy). Our research shows that stocks rated Zacks Rank #1 (Strong Buy) and #2 (Buy) and Style Scores of "A or B" outperform the market over the following one-month period.
You can see the current list of Zacks #1 Rank Stocks here >>>
Set to Beat the Market?Let's discuss some of the components of the Momentum Style Score for SNDK that show why this company shows promise as a solid momentum pick.
Looking at a stock's short-term price activity is a great way to gauge if it has momentum, since this can reflect both the current interest in a stock and if buyers or sellers have the upper hand at the moment. It's also helpful to compare a security to its industry; this can show investors the best companies in a particular area.
For SNDK, shares are up 10.34% over the past week while the Zacks Computer- Storage Devices industry is up 5.14% over the same time period. Shares are looking quite well from a longer time frame too, as the monthly price change of 20.41% compares favorably with the industry's 3.67% performance as well.
While any stock can see a spike in price, it takes a real winner to consistently outperform the market. Over the past quarter, shares of Sandisk Corporation have risen 176.37%, and are up 3951.77% in the last year. On the other hand, the S&P 500 has only moved 12.56% and 22.2%, respectively.
Investors should also pay attention to SNDK's average 20-day trading volume. Volume is a useful item in many ways, and the 20-day average establishes a good price-to-volume baseline; a rising stock with above average volume is generally a bullish sign, whereas a declining stock on above average volume is typically bearish. SNDK is currently averaging 10,254,612 shares for the last 20 days.
Earnings OutlookThe Zacks Momentum Style Score encompasses many things, including estimate revisions and a stock's price movement. Investors should note that earnings estimates are also significant to the Zacks Rank, and a nice path here can be promising. We have recently been noticing this with SNDK.
Over the past two months, 6 earnings estimates moved higher compared to none lower for the full year. These revisions helped boost SNDK's consensus estimate, increasing from $42.39 to $65.68 in the past 60 days. Looking at the next fiscal year, 5 estimates have moved upwards while there have been no downward revisions in the same time period.
Bottom LineGiven these factors, it shouldn't be surprising that SNDK is a #1 (Strong Buy) stock and boasts a Momentum Score of B. If you're looking for a fresh pick that's set to soar in the near-term, make sure to keep Sandisk Corporation on your short list.
New York, New York--(Newsfile Corp. - June 25, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against POET Technologies Inc. (NASDAQ: POET) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired POET Technologies Inc. securities between April 1, 2026 and April 27, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/POET.
POET Technologies Inc. Case Details
The Complaint alleges that the Defendants made false and/or misleading statements and/or failed to disclose that:
POET misrepresented its tax status due to it likely being deemed a passive foreign investment company (or "PFIC") under U.S. tax laws which, if not properly reported by each U.S. stockholder, would have negative tax implications for those U.S. stockholders;the foregoing tax issue would, if discovered, make POET a less attractive investment than it would otherwise be, thus threatening POET's valuation;Defendant Thomas Mika, despite affirming that he was not violating a non-disclosure agreement, in fact violated a business agreement by speaking about POET's business agreements in a public interview, thus endangering POET's business prospects, andas a result, Defendants' statements about POET's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.What's Next for POET Technologies Inc. Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/POET, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in POET Technologies Inc. you have until June 29, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to POET Technologies Inc. Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for POET Technologies Inc. Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
Attorney advertising.
Prior results do not guarantee similar outcomes.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/294978
Source: Bronstein, Gewirtz & Grossman, LLC
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
A month has gone by since the last earnings report for Modine (MOD - Free Report) . Shares have lost about 1.2% in that time frame, outperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is Modine due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.
Modine Q4 Earnings Beat EstimatesModine posted adjusted earnings of $1.71 per share for the fourth quarter of fiscal 2026, which increased 53% from the year-ago quarter and came above the Zacks Consensus Estimate of $1.51 by 13.2%. Net sales were $954.4 million, which rose 47% year over year and topped the consensus mark of $907 million by 5.2%.
Momentum in the company’s data center cooling business remained the key catalyst, with Data Centers revenues exceeding $400 million in the quarter, even after severe weather reduced production time.
Climate Solutions to Drive GrowthModine delivered another quarter of outsized growth as demand for its thermal management solutions stayed strong in mission-critical applications. The quarter capped a fourth consecutive year of record revenues and adjusted EBITDA, underscoring the pace of its portfolio shift toward faster-growing end markets.
Despite supply chain constraints and weather-driven downtime across multiple locations, it still pushed meaningful volume through the system. That execution mattered because Modine is expanding capacity to meet rising needs from hyperscale data center customers.
Higher Tariffs & Material Costs BiteProfitability reflected the near-term cost of growth. Gross margin fell 320 basis points year over year to 22.5% due to temporary costs tied to the rapid capacity expansion for data center products. Higher tariffs and material costs also weighed on the quarter, while storm-related disruption added overtime and other temporary labor expenses.
Even with those headwinds, gross profit increased to $214.7 million, helped by the sharp pickup in sales. Operating income rose to $103.9 million from $74.5 million in the year-ago period, though results included a restructuring expense of $5.2 million and $12.5 million of costs related to the pending spin-off of the Performance Technologies segment.
Climate Solutions Drives Profitability HigherClimate Solutions was the clear engine of the quarter. Segment sales surged 87% year over year to $665.9 million, powered by strength across both data centers and HVAC technologies. Data Centers sales jumped 158% from the prior year, while HVAC Technologies sales increased 51%, including $38.2 million of incremental sales from acquired businesses.
The growth came with planned margin pressure as Modine accelerates manufacturing investments. Climate Solutions’ gross margin was 24.6%, down 510 basis points year over year, yet earnings still expanded meaningfully as scale improved. Segment operating income climbed 77% to $108.8 million, and adjusted EBITDA increased 63% to $124.3 million.
Performance Technologies Steadies Ahead of Spin-OffPerformance Technologies was largely stable on the top line. Segment sales were $294 million versus $294.8 million a year ago, as lower stationary power demand was mostly offset by higher volumes tied to automotive, commercial vehicle and off-highway customers.
Margins, however, tightened. Performance Technologies’ gross margin declined 390 basis points year over year to 16.5%, primarily due to higher material costs and tariffs. Operating income slipped 7% to $27.7 million, and adjusted EBITDA declined 15% to $37.4 million, reflecting the tougher cost backdrop as the business moves toward separation.
Cash Flow Supports Investment-Led GrowthBalance sheet and cash generation remained an important support as Modine ramps up capital spending to expand data center capacity. For fiscal 2026, net cash provided by operating activities increased to $248.7 million, while free cash flow was $105.4 million as working capital and higher capital expenditures absorbed cash.
As of March 31, 2026, cash and cash equivalents totaled $73.5 million, up from $71.6 million as of March 31, 2025. Total debt was $436.3 million, leaving net debt at $362.8 million, as borrowings funded working capital needs, acquisitions and capital expenditures during the year.
FY27 OutlookThe company’s fiscal 2027 outlook calls for another year of record performance, supported by customer relationships and a significant order book in Data Centers. Modine expects net sales growth of 20% to 35% for fiscal 2027, alongside adjusted EBITDA of $650 million to $680 million.
The company’s outlook includes Performance Technologies for all of fiscal 2027 and will be refreshed for the remaining business once the timing of the planned spin-off is finalized. Modine also expects to incur approximately $30 million to $40 million of additional costs during fiscal 2027 tied to the pending Reverse Morris Trust transaction with Gentherm.
How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a downward trend in fresh estimates.
The consensus estimate has shifted -13.58% due to these changes.
VGM ScoresAt this time, Modine has a strong Growth Score of A, though it is lagging a bit on the Momentum Score front with a B. However, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Interestingly, Modine has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry PlayerModine belongs to the Zacks Automotive - Original Equipment industry. Another stock from the same industry, Westport Innovations (WPRT - Free Report) , has gained 9.6% over the past month. More than a month has passed since the company reported results for the quarter ended March 2026.
Westport reported revenues of $2.29 million in the last reported quarter, representing a year-over-year change of -96.8%. EPS of -$0.33 for the same period compares with -$0.14 a year ago.
For the current quarter, Westport is expected to post a loss of $0.45 per share, indicating a change of -55.2% from the year-ago quarter. The Zacks Consensus Estimate remained unchanged over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Westport. Also, the stock has a VGM Score of F.
Key Takeaways Futu's total client assets rose 47.2% year over year to HK$1.22 trillion in the first quarter.Hong Kong and Singapore drove inflows, supported by affluent clients and rising platform trust.Wealth management assets climbed 28.2% as Futu expanded funds, structured products and virtual assets. Futu Holdings Limited (FUTU - Free Report) is seeing strong momentum from client asset inflows, with management pointing to higher-quality investors as a key growth driver. During the first quarter of 2026, total client assets climbed 47.2% year over year to HK$1.22 trillion, while funded accounts increased 34.3% to 3.59 million. Net asset inflows accelerated despite market swings, showing that investors continued adding capital to the platform.
Management said Hong Kong and Singapore remained the main sources of asset inflows, supported by affluent clients and growing trust in the platform. Daily average client assets rose 60.8% year over year to HK$1.27 trillion, while margin financing and securities lending balances increased 44.9% to HK$72.9 billion. The company also reported record quarterly trading volume of HK$4.15 trillion, led by continued activity in Hong Kong and U.S. equities.
Futu’s strategy is increasingly focused on raising client lifetime value rather than only adding new accounts. During the earnings call, management highlighted that Singapore’s average client assets have grown at a compound annual rate exceeding 50% over the past three years. The company also noted that overseas average assets under management per client reached about US$18,000, reflecting improving client quality.
The company is expanding wealth management, virtual assets and investment products to capture larger client balances. Wealth management client assets reached HK$178.4 billion, up 28.2% from a year earlier. New funds, structured products and PantherTrade’s licensed virtual asset platform are expected to strengthen engagement while supporting future asset inflows.
Futu also continues to strengthen its financial position. S&P Global reaffirmed the company’s investment-grade issuer credit rating, reflecting confidence in its balance sheet and liquidity. Although first-quarter reported net income was affected by a regulatory provision, management said underlying business trends remained solid and maintained its full-year target of 800,000 net new funded accounts.
How Are Interactive Brokers and Robinhood Growing?Interactive Brokers Group (IBKR - Free Report) continued attracting client assets during May 2026, reporting an ending client equity of $937.3 billion, up 49% year over year and 8% month over month. Interactive Brokers Group also had 4.995 million client accounts, up 32% year over year and 3% month over month. Interactive Brokers Group’s client margin loan balances reached $100.9 billion, up 65% year over year.
Robinhood Markets (HOOD - Free Report) reported Total Platform Assets of $377 billion at May 2026-end, up 48% year over year and 9% from April. Robinhood recorded $5.6 billion in May net deposits, while Robinhood’s trailing 12-month net deposits reached $69.1 billion, showing solid asset inflow momentum.
FUTU’s Price Performance, Valuation and EstimatesShares of Futu have declined 30.1% over the past three months against the industry’s growth of 8.6%.
Image Source: Zacks Investment Research
From a valuation standpoint, FUTU trades at a forward 12-month price-to-earnings of 9.99, slightly above the industry but lower than its one-year median of 16.13. This valuation disparity might not be as favorable as it seems. It carries a Value Score of D.
Image Source: Zacks Investment Research
Over the past 30 days, earnings estimates for both 2026 and 2027 have been revised downward, signaling a bearish outlook from analysts.
In a world where bigger is better, Cerebras Systems NASDAQ: CBRS seems to be well positioned. Instead of linking numerous AI cores together, creating data transfer bottlenecks along the way, Cerebras Systems chips are massive, comparable to dinner plates, housing thousands of cores in each.
The advantage to this approach is simple: speed. Housing AI cores on a single chip enables lightning-fast speeds unparalleled by traditional GPU technology. The disadvantage is memory capacity: NVIDIA’s NASDAQ: NVDA Vera Rubin natively supports far more memory, making it a superior choice for training and advanced applications.
Get Cerebras Systems alerts:
Meanwhile, speed makes Cerebras Systems' AI technology well-suited to real-time inference, the far larger market.
Cerebras Set to Dominate in the AI Inference MarketCurrently estimated at approximately $125 billion as of mid-2026, the inference market is expected to proliferate at a solid double-digit compound annual growth rate for at least the next four to five years, doubling in that time. While GPUs are the basis for inference, hardware demand is expanding to include more specialized equipment better suited to the task.
Cerebras's other advantages include the far simpler programming required compared to multi-GPU setups, a smaller footprint, as one Cerebras chip can replace dozens of servers, and lower operating costs. For comparable computing power, the chips deliver industry-leading speeds, often double to triple the token-generation throughput of traditional GPU setups, depending on the model.
CBRS Pulls Back to IPO Lows With Catalysts in PlayCerebras Systems has several catalysts in play, including a growing number of business deals, supply chain insulation, and new product launches. Deals such as those with OpenAI and Amazon’s NASDAQ: AMZN Amazon Web Services are generating revenue now and are expected to ramp in upcoming quarters.
OpenAI is currently porting GPT 5.4 and GPT 5.5 to the Cerebras infrastructure and plans to deploy 750 megawatts of its own capacity soon.
The deal with AWS promises to generate a rapidly growing revenue stream through a disaggregated inference setup: AWS's Trainium chips handle the prefill stage—processing the input—while Cerebras's CS-3 systems run the high-speed decode stage that generates the output tokens.
Other catalysts for Cerebras include manufacturing and construction, which do not require high-bandwidth memory (HBM), insulating the firm from industry bottlenecks. The impact is that Cerebras can ramp production of its chips while others are forced to wait on memory modules, putting it in a position to gain market share quickly.
Hurdles Drive Volatility for CBRS ShareholdersHowever, as robust as the outlook may be, the company has hurdles and headwinds to overcome. Among them are customer concentration, which relies on a limited number of hyperscalers, including the United Arab Emirates-backed G42 Holdings, Ltd. It exposes the company to government scrutiny and export controls. Meanwhile, the intense increase in inference demand forced the company to lease back previously committed capacity, temporarily impairing its margins.
The more pressing concern is competition. In-house chips seek to achieve much of what Cerebras Technology is doing, and there is the memory shortfall to account for. While Cerebras chips are super fast, they have limited on-chip memory, which affects their usefulness in some applications.
While the systems are great at producing output, they struggle with input and need front-end assistance with massive prompts (such as enterprise-quality requests based on potentially endless datasets). The deal with Amazon is an example, as Cerebras systems need the Trainium infrastructure to sort and organize the data into digestible bites it can use to generate super-fast responses.
The company’s plan is to increase its memory capacity over time by shrinking the size of the SRAM modules within each chip. The company has done so successfully across several generations and is on track to do so again with its upcoming technology. The caveat is that there is a physical limit to how much can be placed on a single wafer because nodes can only get so small.
Optimistic Analysts Highlight Value Opportunity in CBRS StockCerebras Systems Stock Forecast Today12-Month Stock Price Forecast:
$299.30
78.55% Upside
Buy
Based on 11 Analyst Ratings
Current Price$167.63High Forecast$340.00Average Forecast$299.30Low Forecast$273.00Cerebras Systems Stock Forecast Details
The initial analyst outlook for Cerebras is bullish. The first 11 reports to show up on MarketBeat’s tracking page since the IPO include 10 Buy ratings for a 92% Buy-side bias. The group sees the stock as fairly valued near its IPO level, approximately 60% above the late-June price action. The risk is that price action will continue selling off, as is often the case with IPO stocks, but the analysts' chatter suggests otherwise. They view company guidance as conservative, expecting strengths to emerge as the year progresses.
Among the strengths are the potential for accelerated gross margin expansion. The combination of capacity ramping and rising compute costs creates a dual lever for growth. In this scenario, CBRS will likely outperform its guidance in the upcoming quarters and improve its profitability outlook.
As it stands, profits are expected by next year, and profitability is expected to improve aggressively over the subsequent three to five years.
Should You Invest $1,000 in Cerebras Systems Right Now?Before you consider Cerebras Systems, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Cerebras Systems wasn't on the list.
While Cerebras Systems currently has a Buy rating among analysts, top-rated analysts believe these five stocks are better buys.
View The Five Stocks Here
Discover the 10 Best High-Yield Dividend Stocks for 2026 and secure reliable income in uncertain markets. Download the report now to identify top dividend payers and avoid common yield traps.
The SpaceX (NASDAQ: SPCX) short volume ratio has been steadily climbing since the first day in the stock market, June 12, and hit its fourth consecutive and latest all-time high (ATH) of 68.72 on Wednesday, June 24.
Indeed, just after the IPO, the figure stood at a relatively low 33.72 and began a steady climb to 46.22 on the third trading day before slightly retracing to 45.71 on June 17 – shortly after SPCX shares recorded their intraday ATH price of $225.64 and the company’s valuation soared to just under $3 trillion.
SpaceX stock daily short volume ratio. Source: Fintel Simultaneously, SpaceX stock continued its plunge toward its initial opening price of $150 on the day, and is, based on the movements in the opening hour of the Thursday session, in danger of recording a new all-time low.
SpaceX stock price performance Indeed, after the IPO was conducted at $135 per share, the equity started trading at $150 on June 12 and ended the day at $160.95. In subsequent sessions, SPCX soared to the $225.64 ATH and the ATH closing price of $211.39, but then sharply retraced.
At press time on Thursday, June 25, SpaceX stock is changing hands at $152.46, meaning it started the session with a 1.35% loss relative to the previous close and, notably, reversed a brief recovery in the pre-market.
SpaceX stock price one-day chart. Source: Google Why SpaceX stock is set for a rally in July and August Looking ahead, it appears likely that SPCX shares will enjoy another rally later in the summer.
The exceptionally high IPO valuation of $1.77 trillion has made it all but impossible for SpaceX not to meet the criteria for fast-track inclusion into the Nasdaq-100 in a move guaranteed to trigger significant automatic buying from index funds.
Furthermore, the earnings report for the calendar second quarter (Q2) also appears poised to generate tailwinds. Regardless of SpaceX’s other divisions’ performance, Elon Musk’s newer public company has been developing its neocloud business with partnerships with artificial intelligence (AI) giants such as Alphabet (NASDAQ: GOOGL) and Anthropic.
The latter of the two could be particularly significant.
According to SpaceX’s S-1 filing, it offered a discount to the AI company for the duration of Q2 as part of a ramp-up period, meaning that it will, on the one hand, probably be able to record some revenue from the agreement, and, on the other, will be able to predictably raise its revenue forecast for Q3 once the full price of just over $1 billion starts getting levied.
Elsewhere, industry skeptics such as Ed Zitron speculated that the initial discount is part of the reason why Anthopic was able to claim likely profitability during Q2, but not for later in the year.
Could SpaceX stock price plummet to new lows before 2027? Long-term, SpaceX stock’s performance becomes significantly more uncertain. Various banking giants and Elon Musk himself estimated the company’s revenue would reach sufficiently high – up to $1 trillion by 2030 and over $3 trillion by 2040 – to justify the high valuation.
On the bearish side, the firm’s revenue during Q1 was roughly forty times smaller than Amazon’s (NASDAQ: AMZN) – SpaceX briefly overtook Amazon in terms of market capitalization earlier in June – and the company was operating at a loss.
Lastly, the insider lockup-structure – and the unlock timetable, to be more precise – is itself likely to generate substantial selling pressure by the end of 2026.
Space Exploration Technologies (SPCX 1.88%) is in the spotlight for all the right reasons. It just completed the largest initial public offering in history, having raised $75 billion by offering 555 million shares at $135 each plus another $10.7 billion from the underwriters that exercised their options to buy more shares. However, the number of shares available for public trading is still tiny relative to SpaceX's over $2 trillion market cap.
The company's float could increase to as much as 37% in late August. But until then, there's a supply-demand crunch on the stock, which is contributing to its volatility. SpaceX is already down big from its intraday high of $225.64, although as of the close of trading Tuesday, it was still up 4% from its initial trading price of $150 per share.
While long-term investors may not appreciate the volatility or the financial engineering of SpaceX's public market debut, they may be intrigued by the company's bold plans to launch millions of artificial intelligence (AI) data center satellites into orbit.
Here's why SpaceX is betting big on orbital data centers, and if the growth stock is a great buy now.
Image source: Getty Images.
A different type of SpaceX satellite SpaceX isn't profitable, but it has multiple levers that it could pull to unlock growth over the next several decades and beyond. It conducted around 80% of U.S. space launches in 2025 and exited that year with 9,600 Starlink broadband and mobile satellites in orbit. It owns xAI, the social media platform X, and could deploy millions of AI compute satellites -- which SpaceX says would actually be easier to manufacture than Starlink satellites because they won't need to have complex antennas.
The company's first AI satellite design features a 70-meter wingspan and a deployed height of 20 meters. By comparison, the majority of Starlink satellites in orbit are second-generation V2 Mini satellites, which are just 4.1 meters by 2.7 meters. The bigger issue is the added payload weight: AI satellites' compute clusters will have a lot of mass, making them significantly more expensive to launch.
Additionally, SpaceX plans to launch its AI compute satellites into a higher-altitude sun-synchronous orbit. This will make solar power generation predictable. However, it will also make the massive AI satellites more visible at night than most Starlink satellites.
Today's Change
(
-1.88
%) $
-2.90
Current Price
$
151.64
Satellite manufacturing on an unprecedented scale SpaceX says it aims to have 1 gigawatt (GW) of AI compute satellites in orbit by the end of 2027, then scale that by an order of magnitude in the subsequent three years, reaching 10 GW by the end of 2028, 100 GW by the end of 2029, and 1 terawatt (1,000 GW) by the end of 2030. At a peak output of 150 kW per satellite based on its AI1 satellite design, that would mean 6,667 satellites at 1 GW, 66,667 satellites at 10 GW, 666,667 satellites at 100 GW, and then a mind-numbing 6.67 million satellites at 1 terawatt. To describe that as ambitious would be an understatement.
To get there, SpaceX is building a more than 11-million-square-foot factory it has dubbed "Gigasat" in Bastrop, Texas, which is just outside Austin. Situated on a more than 1,000-acre site, that factory will handle end-to-end production of AI compute satellites, from the solar panels that will power them to the electronic components and satellite assembly.
Tesla (TSLA 0.45%) investors will be familiar with CEO Elon Musk's preference for vertically integrated manufacturing. Expanding beyond its Fremont, California, factory to large-scale production centers (Gigafactories) in Nevada, New York, Texas, Shanghai, and Germany was an integral part of the strategy that allowed Tesla to grow into a major global automaker. However, Tesla was expanding production while facing the scrutiny that all public companies must accept. Plus, it was capital-constrained and relied heavily on scaling up its Model 3 production to boost cash flow and fund its manufacturing expansion.
SpaceX has a massive advantage in that it is already worth more than Tesla and should have no problem turning to capital markets to raise capital, whether by issuing debt or selling more equity. SpaceX reported a net loss in 2025, yet the market doesn't seem to care, given its growth potential.
In sum, Tesla was consistently trying to prove to public markets that electric vehicles could be profitable and disrupt the automotive industry, whereas SpaceX has a first-mover advantage in a new niche of the data center market where it faces virtually no direct competitors.
AI satellite constellations are far from a sure bet Investors are giving SpaceX the green light to think big on a cosmic scale. Investors buying SpaceX today probably care way more about its timeline for launching AI compute satellites into space rather than the costs of its path to profitability.
But SpaceX will undoubtedly run into challenges along the way to deploying its constellation of satellites. And as the quarters tick by, investor patience could be tested -- especially during market sell-offs or if there's a slowdown in AI spending.
All told, there's no rush to buy SpaceX right now, at a time when sentiment is overwhelmingly positive and investor enthusiasm is through the roof. The better approach would be to keep SpaceX on your watch list and monitor its progress on constructing Gigasat and getting its first AI satellites launched into space. If its big idea pays off, SpaceX will deserve to be worth much more than it is today. But at this time, that's a big "if."
Analyst’s Disclosure: I/we have a beneficial long position in the shares of RKLB 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.
Following a blockbuster initial public offering (IPO) that became the largest in stock market history, shares of Space Exploration Technologies (SPCX 1.88%) -- best known as SpaceX -- have cooled off.
There was, to put it lightly, a lot of hype surrounding SpaceX's IPO, partly because of the promises it had sold to investors and partly because of the usual cult-like following of its CEO, Elon Musk. Once SpaceX began trading on June 12, tons of retail investors poured money into the stock. But now those gains have virtually disappeared for most investors who got in after the IPO.
Considering the roller-coaster ride the stock has taken investors on so far, is now a time to jump ship until IPO-mania is over, or should investors embrace what many see as inevitable volatility?
Image source: The Motley Fool.
Great businesses don't always make great investments Any time there's a blockbuster IPO, high volatility is expected in its early trading days. A lot of it comes from people speculating and trying to make a quick dollar off the IPO pop before cashing out, rather than being left holding the bag. SpaceX has so far followed that trend.
Stock speculation aside, SpaceX's value proposition remains the same: It has rocket launch and internet satellite businesses that are huge players in their respective industries; it has an artificial intelligence division after acquiring Musk's xAI (which owns X, formerly known as Twitter); and it's sitting on lots of cloud computing capacity that it can rent out for another revenue stream.
There's a lot to be excited about with SpaceX's business, but that doesn't always make for a good investment -- especially when it's valued as high as SpaceX. Even after its recent pullback, SpaceX is valued at over $2 trillion (as of market close on June 22) and is the seventh-most-valuable public company in the world.
That's a huge valuation for a company that lost nearly $5 billion in 2025 and trades at well over 100 times sales. For perspective, the six companies currently valued ahead of SpaceX are trading at between 3.4 and 20.1 times sales and reported net income between $18.1 billion and $62.6 billion in their most recent quarters.
AMZN PS Ratio data by YCharts
SpaceX's stock will be a test of who's investing versus speculating. When you speculate, you buy shares simply hoping to profit from price swings, and don't really care too much about the underlying company. When you invest, you're buying shares of a company because you want to own a piece of a business that you believe in.
If you fall into the speculation bucket, you could be in for a long ride that likely won't work out in your favor. If you fall into the investing bucket -- which should absolutely be the case -- then you shouldn't give too much weight to these short-term price swings because they won't matter too much years down the road.
Today's Change
(
-1.88
%) $
-2.90
Current Price
$
151.64
Investing in SpaceX is about believing in a vision that's unlikely to come to fruition for well over a decade. Whether it's data centers in space or other ambitious plans, the focus should be on the long-term opportunities SpaceX is pursuing. You shouldn't jump ship just because of a few bad days, but you should understand that, historically, companies in SpaceX's position have underperformed in the first few years after their IPO.
There's no rush to invest in SpaceX right now. I would wait it out until well after its lock-up periods (when insiders can sell shares) have passed before deciding when it is a good entry point for investing. If you already own shares, I'd hold on to them for now instead of panic-selling; just be prepared to stomach the volatility.
Stefon Walters has positions in Apple, Microsoft, and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Amazon, Apple, Microsoft, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool has a disclosure policy.
SpaceX SPCX shares fell more than 1% in trading on Thursday, extending a recent pullback after closing at $154.54 in the previous session, their lowest close since the company’s mid-month IPO.
The stock briefly dipped below its $150 IPO price earlier this week but remains slightly above its initial trading level of June 12.
After debuting at $135 and surging above $225 in early sessions, the stock has since retreated, reflecting increased volatility in the days following listing.
Retail demand remains strong despite price pullbackMarket attention has shifted to retail investor behavior following the IPO, with data suggesting continued buying interest even as the stock has cooled.
Vanda Research noted in a Wednesday report that retail investors have consistently added to positions since listing.
"Unlike many thematic launches that quickly lose momentum, retail investors have been net buyers every day since the stock listed, reinforcing its status as a retail favourite," Vanda wrote.
The firm also highlighted uncertainty around future flows.
"The next question is whether fresh inflows reaccelerate or whether investors begin rotating back into individual AI names following the recent pullback."
Meanwhile, early Wall Street coverage has taken a cautious stance.
KeyBank initiated coverage without a price target, stating the company “possesses significant disruptive growth avenues, though we believe this is reflective in [the] current valuation and risk/reward appears balanced, in our view,” they wrote.
Susquehanna also initiated coverage with a Neutral rating and a $170 price target.
SpaceX is set to be included in the Russell 1000 index on Friday, a move expected to increase exposure within growth-oriented funds.
The stock will be classified as approximately 90.4% growth and 9.6% value within the index framework.
The IPO comes amid additional corporate financing activity.
The company recently tapped debt markets following its listing, with an offering that drew reported demand of nearly $89 billion and carried coupons ranging from 5.35% to 6.65% with maturities between 2031 and 2056.
The proceeds are expected to be used to repay a bridge loan, cover fees, and support general corporate purposes.
The refinancing replaces a $20 billion bridge loan related to debt from xAI, which SpaceX acquired in February.
The company is also preparing for its first earnings report as a public entity, expected in late July or early August.
Investors are expected to focus on Starlink subscriber growth and Starship R&D spending.
“Starlink is the biggest revenue and profit driver for the company right now,” Morningstar said in a note earlier this month.
The recent pullback in SpaceX shares has also impacted Elon Musk’s net worth, which fell to $946 billion from about $1.11 trillion earlier this month, according to the Bloomberg Billionaires Index.
Musk had briefly crossed the trillion-dollar threshold following SpaceX’s June 12 IPO, when shares surged to $225.64 and lifted his paper wealth to a peak of around $1.32 trillion.
However, the subsequent decline in both SpaceX and Tesla shares has reduced his fortune significantly, though he remains the world’s richest individual by a wide margin.
The IPO rally has cooled as investors reassess valuations, capital intensity, and future growth expectations tied to SpaceX’s expanding AI and satellite ambitions.
RANCHO CUCAMONGA, Calif., June 25, 2026 (GLOBE NEWSWIRE) -- Toll Brothers, Inc. (NYSE:TOL), the nation’s leading builder of luxury homes, today announced Vinova, a new luxury home community by Toll Brothers, is now open for sale in Rancho Cucamonga, California. The community features the Highlands and Overlook Collections, offering pre-model pricing for home shoppers eager to secure their dream home in this sought-after location.
Vinova features expansive floor plans ranging from approximately 3,463 to over 5,000 square feet on oversized home sites. Single-family home designs offer 4 to 5 bedrooms, 3.5 to 5.5 baths, and 2- to 3-car garages, with pricing starting from $1.75 million. The community showcases an elevated selection of modern homes, including single-story and two-story options, with unrivaled personalization opportunities available at the Toll Brothers Design Studio.
Toll Brothers customers will experience one-stop shopping at the Toll Brothers Design Studio. The state-of-the-art Design Studio allows home shoppers to choose from a wide array of selections to personalize their dream home with the assistance of Toll Brothers professional Design Consultants.
"We are excited to bring the luxury lifestyle that Toll Brothers is known for to Rancho Cucamonga with the opening of Vinova," said Brad Hare, Group President of Toll Brothers in Southern California. "Home shoppers can take advantage of pre-model pricing to secure their place in this exceptional community while enjoying access to outstanding amenities and a vibrant location."
Vinova offers resort-style amenities, including pickleball courts, walking trails, a two-acre community park, playgrounds, picnic areas, and open spaces. The community is conveniently located near premier shopping, dining, and entertainment at Victoria Gardens, with close proximity to major transit routes like Etiwanda Avenue and Wilson Avenue.
The Toll Brothers Sales Center is located at 13111 Notting Hill Drive in Rancho Cucamonga. For more information on Vinova and Toll Brothers communities throughout California, visit TollBrothers.com/CA or call 866-232-1631.
About Toll Brothers
Toll Brothers, Inc., a Fortune 500 Company, is the nation’s leading builder of luxury homes. The Company was founded in 1967 and became a public company in 1986 with common stock listed on the New York Stock Exchange under the symbol “TOL.” Toll Brothers builds new homes and communities in over 60 markets across the United States, serving first-time, move-up, active-adult, and second-home buyers. The Company also operates its own architectural, engineering, mortgage, title, land development, smart home technology, landscape, and building components manufacturing businesses.
Toll Brothers was named the #1 Most Admired Home Builder in Fortune magazine’s 2026 list of the World’s Most Admired Companies®, the ninth year the Company has achieved this honor. Toll Brothers has also been named Builder of the Year by Builder magazine and is the first two-time recipient of Builder of the Year from Professional Builder magazine. For more information visit TollBrothers.com.
Apple CEO Tim Cook says the boom in AI data centers has made price hikes "unavoidable". Justin Sullivan/Getty Images It's possible that AI will bring us all kinds of amazing things in the future.
In the present, AI is making things more expensive.
And Apple just showed us how much more expensive: It is raising prices on some of its Macs and iPads by at least 15% and directly attributing the hikes to the AI boom — specifically the buildout of data centers.
"The rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage," the company said in a statement. "We have never seen a component price increase this much, this quickly."
In real-world terms, that means Apple's entry-level MacBook Air now costs $1,299 — up from $1,099. Its cheapest iPad Air, which cost $599 on Wednesday, now costs $749.
Apple had previewed the price hikes last week, when CEO Tim Cook called them "unavoidable." The company hasn't raised the prices of new iPhones, though we'll see what happens when it introduces new models this fall. Apple's statement says it "need[s] to begin raising prices on a number of products," which suggests these may not be the only increases.
Apple's announcement is important for people who want to buy new computers and tablets. But I think it's much more meaningful than that: It's the first time a giant consumer company has come out and told consumers that prices are going up because of AI.
That feels like an important milestone. That's because so much of the AI debate centers around what people think could happen in the future. If you're an AI optimist, it could help us find new wonder drugs or supercharge new industries. If you're a skeptic, you worry that it will create new bioweapons, or hollow out big swaths of the economy.
But today, in the here and now, Apple is saying things are more expensive because of AI.
That idea has been banging around the tech and financial worlds for some time, as the data center push squeezes on computer chips. That's good for some companies, like chipmakers Micron and SK Hynix, and an issue for just about everyone that needs chips for their products, which is… a lot of companies.
Much of this has been opaque to normal people. Now lots of normal people — even those who aren't in the market for new iPads and MacBooks — are going to hear that AI is making iPads and MacBooks more expensive.
That's the kind of data point that sticks in your head. And it's very hard to dislodge.
The AI industry has plenty of money and influence. But tech usually succeeds by bringing people something new or making something radically cheaper. Now tech says the same stuff you bought yesterday costs much more today.
It's hard to argue your way out of that one.
Read next
Peter Kafka You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Peter covers media and technology for Business Insider; previously he has worked at Vox, Recode, AllThingsD, and Forbes. He was also the first hire at Silicon Alley Insider, Business Insider's predecessor.
AI Inflation Data Centers More Apple Tim Cook iPad Policy
Apple (NASDAQ:AAPL | AAPL Price Prediction) has become one of the more interesting setups in mega-cap tech. After a 46.9% rally over the past year and an 8.01% year-to-date gain, the stock consolidated in June. With earnings accelerating and the iPhone 17 cycle feeding the top line, our model sees room for double-digit upside.
Our 24/7 Wall St. price target for Apple is $338.76, implying 15.59% upside from $293.08. The recommendation is buy, with high confidence at 90%.
24/7 Wall St. Price Target Summary Metric Value Current Price $293.08 24/7 Wall St. Price Target $338.76 Upside 15.59% Recommendation BUY Confidence Level 90% An Earnings Run That Keeps Surprising to the Upside Apple’s March quarter was its strongest in years. Revenue came in at $111.184 billion, up 16.6% year over year, with EPS of $2.01 beating the $1.94 consensus. That marked the 8th consecutive quarter of beating Wall Street estimates.
iPhone revenue hit $56.994 billion, Services set an all-time record at $30.976 billion, and gross margin expanded to 49.3%. Tim Cook called it “our best March quarter ever, with revenue of $111.2 billion and double-digit growth across every geographic segment.”
The stock pulled back from its May high near $308.82, down 5.1% over the past month. Shares sit just 1% off the 52-week high of $317.40 and well above the low of $198.47.
The Case for $353 and Higher Bulls have plenty to work with. The iPhone 17 family was described by Cook as “the most popular lineup in our history,” with US customer satisfaction at 99%. Greater China revenue grew 28% in the March quarter, and India remains, in Cook’s words, “a huge opportunity.”
Services growth of 16% against a 2.5 billion active device base provides recurring, high-margin revenue. Prediction markets put a 96.1% probability on an iPhone 18 release this year, with foldable iPhone odds at 84.5%. Our bull case targets $353.41, a 20.59% return.
The Risks Worth Watching Cook flagged “significantly higher memory costs” ahead and warned the impact will grow beyond June. R&D spending is accelerating well above company-wide growth, which could pressure operating leverage.
Insider activity has been net selling, with 47 transactions recently. The CEO transition, with John Ternus taking over September 1, introduces execution risk. The trailing P/E of 36 leaves little margin for a miss.
The buyback authorization of $100 billion and ongoing margin expansion to 49.3% partly offset cost worries. Our bear case lands at $290.72, essentially flat.
Apple Price Prediction 2026-2030 The 24/7 Wall St. price target of $338.76 reflects high confidence (90%) and a buy rating. The tipping factor is earnings reacceleration. Revenue growth jumped from 7.94% in Q4 FY25 to 16.6% in Q2 FY26, and gross margins keep expanding.
The bullish case strengthens if Apple delivers another double-digit revenue result in the June quarter, in line with the 14-17% guidance. The thesis weakens if memory cost pressure compresses gross margin below 47% or if China growth stalls. Right now, the setup tilts positive.
Here is where our model projects Apple could trade in the coming years, assuming current growth trajectories and market conditions hold.
Year 24/7 Wall St. Price Target 2026 $338.76 2027 $370.00 2028 $402.00 2029 $435.00 2030 $468.42 These projections assume Apple executes on the iPhone refresh cycle and Services flywheel. Significant upside or downside could result from a foldable launch, AI monetization, or a sharper geopolitical hit to China revenue.
Apple (AAPL) fell 0.56% intraday after the company announced price hikes across its MacBook and iPad lineup, its first formal move to pass higher memory and sto
Apple Inc (NASDAQ:AAPL, XETRA:APC) shares fell more than 6% on Thursday after the company announced price increases across several MacBook and iPad models, marking its first formal move to pass rising memory and storage costs on to consumers amid intensifying AI-driven demand for components.
The decline represented Apple’s steepest single-day drop since April 2025, as investors reacted to both the scale of the price increases and the possibility of further adjustments ahead. Apple’s online store was briefly taken offline Thursday morning before returning with updated pricing across its hardware lineup.
Among the changes, the entry-level MacBook Neo rose from $599 to $699, the MacBook Air 512GB increased from $1,099 to $1,299, and the MacBook Pro 1TB climbed from $1,699 to $1,999.
On the tablet side, the iPad Air 128GB increased from $599 to $749, while the iPad Pro Wi-Fi 256GB moved from $999 to $1,199.
In a statement, Apple said the consumer electronics industry is facing “an unprecedented challenge” due to a rapid surge in demand for memory and storage driven by AI data center expansion.
The company said it has “reached a point where we need to begin raising prices on a number of products,” adding that further increases remain possible.
Wedbush analysts described Apple’s move as a response to what it called a “memory storm,” noting that average selling prices for Mac computers rose roughly 15% to 20%, and iPads increased between 15% and 25%.
The firm highlighted the MacBook Air’s $200 increase, the MacBook Pro’s $300 increase, and the MacBook Neo’s $100 increase, while noting that iPhone pricing remained unchanged.
The firm wrote that previous cost pressures had largely been absorbed through inventory and supplier leverage, but argued that the current environment has become “unsustainable,” echoing Apple CEO Tim Cook’s description of price increases as “unavoidable.”
Wedbush added that while Apple is well positioned to pass on higher costs given its premium customer base, continued inflation in memory and storage could force additional pricing actions.
Wedbush also pointed to supply chain implications, noting that Apple’s recent partnership with Intel could play a role in reducing exposure to component shortages and diversifying manufacturing capacity. The firm framed Apple’s broader US manufacturing commitments as part of a longer-term strategy to secure chip supply amid what it described as a multi-year AI-driven hardware cycle.
Wedbush maintained its 'Outperform' rating on Apple with a $400 price target, even as shares lower to about $274 on Thursday in response to the pricing changes and concerns over demand elasticity.
Apple customers may experience sticker shock next time they look to buy one of many products. The company is raising prices of Macs, iPads, home devices, and the Vision Pro to offset cost hikes caused by a shortage of memory chips and storage.
Last year, investors were wondering how Alphabet traded so cheaply before it more than doubled. This year, investors ought to wonder why Meta Platforms (META 2.38%) is trading at such a cheap valuation, because it will probably look a lot different in 2027.
Meta Platforms trades at the lowest price-to-earnings (P/E) ratio among the Magnificent Seven stocks, and yet, it's growing faster than most of them. If you review the fundamentals, Meta Platforms' stock looks very undervalued, and it may not trade at this level again for several years.
Image source: Getty Images.
The growth narrative has gotten stronger Meta Platforms is down by more than 10% year to date, but its fundamentals keep climbing higher. Revenue surged by 33% year over year in the first quarter, with operating income up by 30% year over year. While some growth stocks endure corrections in these situations due to high valuations, a 20.5 P/E ratio isn't that high for Meta Platforms' fundamentals.
Not only is Meta Platforms cheaper than the other Magnificent Seven stocks, it also has a lower P/E ratio than the S&P 500, which currently sits at 32.2. Meta Platforms is posting higher revenue and operating income growth rates than the majority of S&P 500 companies, and it's even edging out most of the Magnificent Seven stocks in that regard.
Online advertising remains the bread and butter of the Meta Platforms business model, and that's not necessarily a problem. Online ads have high profit margins and have served the company well for many years. Meta Platforms has mastered the ability to increase the average revenue per user, even as its user growth numbers gravitate toward the low single digits year over year.
Today's Change
(
-2.38
%) $
-13.25
Current Price
$
544.42
Meta Platforms is diversifying beyond online advertising There's absolutely nothing wrong with Meta Platforms making most of its money from online ads, since growth rates are still high, but Meta Platforms is still starting to diversify, which should make investors excited.
If Meta Platforms can diversify, in the same way Alphabet and Amazon started several profitable segments under their corporate umbrellas, it could potentially lead to the stock more than doubling within a year, just like Alphabet recently did.
Meta Platforms is also diversifying in the right industry, artificial intelligence. Meta Superintelligence Labs released its first AI model, and CEO Mark Zuckerberg said the company is "on track to deliver personal superintelligence to billions of people." This product aligns with Superintelligence Lab's ambition to create systems that surpass human intelligence in reasoning, memory, and knowledge. That type of product can introduce new, lucrative revenue streams.
Investors shouldn't hold their breath waiting for other business segments to affect Meta Platforms' revenue. Online ads made up 98.4% of total revenue. However, these opportunities are growing in the background. Meta Platforms is undervalued just for its advertising business, with all of its side quests serving as long-term catalysts that can lead to future gains.
Elon Musk is no longer a trillionaire. The world’s richest man had become the world’s first trillionaire after the record-setting IPO of Space Exploration Technologies (SPCX 1.88%) on June 12.
But a sell-off in SpaceX stock, combined with an even deeper drop in recent days in his other company, Tesla(TSLA 0.45%), pushed Musk back into the land of mere billionaires less than two weeks later. According to the Bloomberg Billionaires Index, Musk’s total net worth as of June 24 was $946 billion.
But don’t feel too bad for Musk -- he still has $650 billion more than Alphabet co-founder Larry Page, who is No. 2 on the list. And Musk has made $326 billion this year alone, which is more than the net worth of anyone else in the world.
Image source: The Motley Fool.
Odds are that Musk will regain his trillionaire status at some point. But in the meantime, the dip in SpaceX and Tesla warrants investigation. Are either of these stocks a buy now at reduced prices, or can investors expect even more volatility?
SpaceX is the biggest IPO in historySpaceX had a historic IPO this month. It sought to raise a record-setting $75 billion in its initial public offering and then topped that as underwriters exercised their “greenshoe” overallotment options, bringing the final figure to $85.7 billion. The company says it identified a total addressable market (TAM) of $28.5 trillion, with $26.5 trillion of that coming from AI.
SpaceX has three primary businesses. It’s perhaps best known for its rocket-launching business, which has so far completed more than 660 missions and deploys reusable rockets on most of them. Then there’s the Starlink satellite business, which is SpaceX’s only profitable venture to date. Starlink employs a network of more than 9,600 satellites in low-Earth orbit to provide mobile connectivity and internet access to rural and underserved communities.
AI, which includes the Musk-owned xAI that was absorbed by SpaceX earlier this year, is the most ambitious of the three businesses. It houses Grok, the company’s large language model and chatbot, and X, the social media platform formerly known as Twitter. The company lays out an ambitious plan to construct a vast AI computing infrastructure, starting on Earth but eventually extending into space.
Today's Change
(
-1.88
%) $
-2.90
Current Price
$
151.64
But it will be costly. Goldman Sachs, which was the lead underwriter for the SpaceX IPO, projects that the company will post a negative free cash flow of $105 billion in 2029 before becoming free cash flow positive by 2031.
The company also rattled investors this week when it announced a bond sale to raise money, despite having $100.8 billion in cash on hand. Published reports indicate that the company is looking to raise $20 billion through the sale. The stock fell more than 16% on the news.
SpaceX has a $2 trillion valuation, but it will take time for the company to turn a profit. Investors can expect a wild ride in the meantime.
Tesla wants to be more than an automakerMusk became a household name for his leadership of Tesla, which he grew into the world's largest automaker by market cap. Tesla helped popularize electric vehicles, and its stock grew rapidly from 2019 through 2023, with a five-year growth rate of 1,020%.
But 2024 and 2025 were not as kind. Competition grew stronger and margins tightened. Tesla sales fell in both 2024 and 2025, and while numbers rebounded in the first quarter of 2026, Tesla isn’t seeing the profit margins that it enjoyed just a few years ago.
However, Musk is turning Tesla’s attention to other ventures. It earned $2.4 billion in the first quarter from its energy generation and storage components, and it has a software business that sells full self-driving (FSD) and connectivity subscriptions to Tesla owners.
Today's Change
(
-0.45
%) $
-1.68
Current Price
$
373.85
Tesla is also working to make unsupervised FSD a reality -- and while the technology hasn’t been finalized or approved for nationwide use, Musk hopes to have it approved by the end of this year.
Finally, Tesla has an ambitious robotics program, with its first-generation line being developed at its Fremont, California, factory to produce up to 1 million Optimus robots per year. A second-generation line in Texas is also in development to produce 10 million robots annually. Musk has described the Optimus robots as assistants capable of completing everyday household tasks and operating in factories.
However, Tesla stock has underperformed the S&P 500 and is down 17% so far this year. A solid second-quarter report showing improved EV sales and margins would go a long way toward restoring investor confidence in the stock, but in the meantime, investors should view Tesla with some caution.
Key Takeaways Sweden's TRV asked the EU to reject broader FSD deployment over automated speeding concerns.Regulators also flagged winter-road performance and the Full Self-Driving name.TSLA won Dutch approval in April, with rollout reaching several European countries. Tesla, Inc.’s (TSLA - Free Report) Full Self-Driving (FSD) system recently gained access to public roads in the Netherlands, marking its first approval in Europe and fueling expectations of a broader rollout across the continent. However, not all countries support the expansion. Sweden’s Transport Administration (TRV) has urged the European Union to reject the wider deployment of FSD in its current form.
A key concern for Swedish regulators is Tesla’s “Speed Offset” feature, which allows FSD-equipped vehicles to travel above posted speed limits, per Reuters. While similar functionality exists in conventional cruise-control systems, regulators argue that the risks are greater when the feature is integrated into an automated driving system. In a letter to the EU’s Technical Committee on Motor Vehicles (TCMV), the TRV warned that permitting automated systems to exceed legal speed limits routinely could undermine traffic laws and reduce the intended safety benefits of vehicle automation.
Beyond the speed-related issue, European authorities have also raised concerns about FSD’s performance in challenging winter conditions, particularly on snow-covered roads, as well as the potentially misleading nature of the “Full Self-Driving” name. These concerns come as the TCMV prepares to vote on June 30 on whether to extend the Dutch approval across the European Union.
The TRV does not have the authority to determine Sweden’s position in the European committee vote. That role is held by the Swedish Transport Agency (STA), which acts as the nation’s vehicle type-approval authority.
Per Reuters, the STA has been engaged in discussions with both Tesla and the Dutch road authority, RDW, regarding the matter. One reported meeting between Tesla and regulators lasted about two hours on June 4. Per the STA, talks are still ongoing. While the agency has not yet disclosed how Sweden intends to vote, it noted that the concerns highlighted by the Transport Administration continue to be considered as part of its assessment process.
Despite the opposition, Tesla achieved a significant milestone when Dutch regulators approved FSD for use on public roads in April. Since then, the technology has also been introduced in Belgium, Denmark, Lithuania and Estonia, while approval remains under review in Greece. Although Greek officials criticized Tesla for relying on North American data, they acknowledged that FSD could potentially lead to a substantial reduction in traffic accidents.
Tesla maintains that the Speed Offset feature does not compromise safety because drivers remain responsible for the vehicle and can intervene at any moment. Swedish regulators, however, believe this safeguard is insufficient to address the risks associated with automated speeding.
The European version of FSD already differs from the U.S. version. Instead of driving profiles such as “Sloth” and “Mad Max,” European users can adjust settings through “Max Speed” and “Max Speed Offset” options. The system also handles uncertain speed limits differently, displaying an estimated limit accompanied by a question mark when it lacks definitive information. Additionally, the interface labels the system as “FSD (Supervised)” rather than “Full Self-Driving,” likely to reduce the possibility of drivers misunderstanding the technology’s capabilities.
TSLA’s Zacks Rank & Key PicksTesla currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited (GELHY - Free Report) , Douglas Dynamics, Inc. (PLOW - Free Report) and Garrett Motion Inc. (GTX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GELHY’s 2026 sales and earnings implies year-over-year growth of 77.1% and 40.3%, respectively. The EPS estimate for 2026 and 2027 has improved 18 cents and 7 cents, respectively, over the past 30 days.
The Zacks Consensus Estimate for PLOW’s 2026 sales and earnings implies year-over-year growth of 16.7% and 31.4%, respectively. The EPS estimate for 2026 and 2027 has improved 39 cents and 29 cents, respectively, over the past 60 days.
The Zacks Consensus Estimate for GTX’s 2026 sales and earnings implies year-over-year growth of 5.6% and 20.4%, respectively. The EPS estimate for 2026 has improved 12 cents over the past 60 days, while the EPS estimate for 2027 has improved a penny over the past 30 days.
SpaceX (NASDAQ:SPCX) and Tesla (NASDAQ:TSLA | TSLA Price Prediction) sit on opposite sides of the same Elon Musk story. SpaceX debuted on June 12 and carries a $2.13 trillion market cap. Tesla closed Q1 FY2026 with $22.39B in revenue. The question is which grows faster from here.
Rockets Surge. Cars Carry the Quarter. Tesla’s earnings on April 22, 2026 showed the auto business clawing back margin. Automotive gross margin expanded to 21.1% from 16.2%, Non-GAAP EPS landed at $0.41 against a $0.3592 estimate, and Services & Other revenue jumped 42% YoY to $3.75B. Full Self-Driving subscriptions reached 1.28 million, up 51%. A real software flywheel is forming under the car business.
Energy is the soft spot. Generation and storage revenue fell 12% YoY, and operating expenses climbed 37% on AI R&D and CEO stock-based comp. Cash position is fortress-like at $44.74B.
SpaceX is the louder story. After IPOing at roughly $1.8T, shares have dropped 19.43% in one week to $154.54. Forward EPS sits at negative $0.69. Starlink revenue and launch cadence are the bull case. The bear case is the valuation itself.
Cash Machine vs. Capital Story Lens Company A Company B Core bet Autos, FSD, Optimus, energy Starlink, launch, defense Profit profile GAAP operating income $941M Negative forward EPS Key vulnerability Battery pack capacity ceiling Post-IPO lock-up overhang Sentiment Composite 60.97, bullish Composite 58.85, neutral The two companies are now financially intertwined. Tesla disclosed a $2B equity stake in SpaceX and a shared semiconductor fab project at the Gigafactory Texas campus. Owning one is partial exposure to the other.
The Next 12 Months Will Be Decided by Cash Flow and Lock-Ups For Tesla, catalysts are concrete: Cybercab volume production, Tesla Semi ramp, Megapack 3, and Robotaxi expansion into Phoenix, Miami, and Las Vegas. Watch whether FSD subscription growth and energy storage absorb the AI spending bulge.
For SpaceX, the watch list differs. Polymarket traders price a 97.9% probability SpaceX holds the higher valuation on June 30. The harder question is what happens after lock-ups expire. Reddit narrative inverted from “free money” to “institutional rejection” in roughly ten days.
Tesla’s 12-Month Edge vs. SpaceX’s Long-Horizon Story Models favor SpaceX on raw upside. The base case predicts 27.23% for SPCX versus 7.83% for Tesla over 12 months. Confidence levels diverge sharply. Tesla’s prediction carries 90% confidence; SpaceX sits at 50% with negative forward earnings.
For known cash flows, FSD attach rates, and a balance sheet that absorbs a recession, Tesla offers more visibility. For exposure to Starlink’s scale-up, SpaceX has wider distribution. SPCX faces a lock-up expiration overhang, while Tesla’s near-term catalysts center on Cybercab production. SpaceX’s float dynamics remain the key variable to monitor.
Founder's ClubSwingTraderLeaderboardMarketSurgeeIBDIBD DigitalIBD LiveCustomer Center
My Stock Lists
Email Preferences
Help & Support
Sign Out
Search stocks or keywords
Sections
My IBD
MARKET TREND
STOCK LISTS
STOCK RESEARCH
NEWSECONOMY
VIDEOS & PODCASTS
HOW TO INVESTEDUCATIONAL RESOURCESStoreMy Products
Founder's ClubSwingTraderLeaderboardMarketSurgeeIBDIBD DigitalIBD Live
Recently Searched
Biotech Medical Test Leader Hits Record High, Joins 15 Others New To Best Stock Lists
Is Your Stock Strategy Really Getting You To Your Destination?
Stock Market Ends Mixed As Techs Struggle Again, But Micron Spreads Good Cheer Late Shares of Google parent Alphabet (GOOGL) retreated again on Thursday, continuing a June swoon. While Google stock has gained 9% in 2026, shares have pulled back since mid-May amid investor worries over 2027 earnings estimates and a surge in capital spending, analyst Ed Yardeni says in a report. Google stock climbed after the company reported Q1 financial results on April…
Google has introduced new investing capabilities and a new Android app for Google Finance.
The new offerings, announced Thursday (June 25), include the global rollout of an updated portfolios tool, letting users track their investments in one dashboard.
“Your existing Google Finance portfolios will be available automatically, or you can create a new one by dropping in screenshots or uploading files (like CSVs or PDFs) that detail your holdings,” Google wrote on its blog. “You can even just describe your investments to get started and build from there.”
After a portfolio is set up, the Google Finance research tool lets users explore further by asking questions such as “what sectors are currently underrepresented in my portfolio?” or “how does my fixed income allocation impact my long-term growth potential?”
In addition, users can ask Google Finance to keep them updated on their chosen topics by describing a task — the company gives the example of requesting “a daily pre-market briefing analyzing significant overnight moves across major cryptocurrencies” — to get notified of updates through the Google app.
Lastly, Google has launched a new Google Finance app for Android, “bringing the core of our new experience directly into your pocket,” the post added.
“For people who find themselves checking in on the market multiple times per day, the new app is a dedicated place to easily access your watchlist, as well as real-time data, a live financial news feed, the AI research tool and AI-powered ‘key moments’ that explain why a stock moved.”
This is happening as consumers are increasingly turning to artificial intelligence (AI) for tasks such as organizing their personal finances, as PYMNTS Intelligence research has shown.
For instance, the data shows that 62% of Generation Z consumers surveyed by PYMNTS were willing to use AI for “what if” financial planning.
Among AI’s most fervent adherents, upwards of 60% access AI primarily via a smartphone app, a sign that that artificial intelligence has “moved from occasional browser experimentation to habitual daily behavior,” PYMNTS wrote earlier this year.
“Every additional touchpoint where consumers engage with AI expands the surface area where AI can trigger or influence a financial outcome.”
Google introduced Google Finance in the U.S. last year and has since been steadily updating the tool. Last month, the company expanded the offering to Europe.
Reseller agreement brings Claude, powered by Anthropic, to Hexaware's enterprise clients, accelerating the deployment of safe, high-performance AI at scale
, /PRNewswire/ -- Hexaware Technologies (NSE: HEXT), a global provider of IT solutions and services, announced that it has been named an Anthropic Authorized Reseller for Amazon Bedrock, joining a select group of companies worldwide authorized to resell Claude. Under the agreement, Hexaware can sell, integrate, and support Claude models—directly to enterprise clients worldwide—deepening Hexaware's commitment to delivering transformative, responsible AI solutions.
By bringing Claude directly to its clients, Hexaware is reinforcing its AI-first strategy and positioning itself to support the entire AI lifecycle, from model access and customization to implementation and managed services. Developed by Anthropic with a strong focus on safety and reliability, Claude is built for enterprise use. Its advanced AI methodology and context window make it well-suited for complex, high-stakes applications across industries such as financial services, healthcare, transportation, manufacturing, and retail—areas where Hexaware has deep domain expertise and a global delivery presence.
"This authorization reflects the Foundational AI capability that we've built and the trust our clients have placed in us. Claude's safety-first design is what highly regulated industries need—and Hexaware has the domain knowledge, engineering excellence, and delivery scale to take it from a model to a working solution," said Siddharth Dhar, President & Global Head – Digital IT Operations & AI, Hexaware.
What This Means for Hexaware Customers
Hexaware's Anthropic Authorized Reseller for Amazon Bedrock status translates into immediate, tangible advantages for enterprise customers:
Direct access to Claude models: Simplified, enterprise-grade access to Claude models, reducing procurement friction and speeding time-to-value End-to-end AI delivery: Global Hexaware team combining Claude with industry solutions, integration services, and change management, delivering fully operational AI Built-in responsible AI: Anthropic's safety-first models paired with Hexaware's governance for secure deployment in regulated and critical environments Scalable customization: Tailored deployments (RAG, custom prompts, domain tuning) to maximize relevance and performance Unified engagement: Single commercial framework with consolidated billing, SLA-backed support, and clear accountability Faster innovation: Harnessing Hexaware's delivery speed to leverage Anthropic advancements will help clients to stay at the forefront of AI Hexaware's authorized reseller status strengthens its ability to deliver Claude-powered solutions across key use cases, including intelligent document processing, automated compliance, advanced customer service, clinical data summarization, supply chain intelligence, and AI-assisted software engineering.
Hexaware is scaling these Claude-first solutions for clients, prioritizing AI in the software development life cycle (SDLC), private equity transformation, and cybersecurity. The company has also established a dedicated AI center of excellence (CoE) to support its AI strategy, architecture, and implementation across its global delivery network.
About Hexaware
Hexaware is a global technology and business process services company. Every day, Hexawarians wake up with a singular purpose: to create smiles through great people and technology. With offices across the world, we empower enterprises worldwide to realize digital transformation at scale and speed by partnering with them to build, transform, run, and optimize their technology and business processes. Learn more about Hexaware at www.hexaware.com.
Key Takeaways Amazon will invest an additional $13B in India, bringing total planned spending to $48B by 2030.AMZN is expanding AWS capacity, AI services, chips, fulfillment centers and delivery stations.Amazon faces execution and cash flow pressures as Microsoft and Google ramp up India AI investments. Amazon (AMZN - Free Report) has committed an additional $13 billion to expand AI and cloud infrastructure in India, lifting its total planned investment in the country to $48 billion through 2030. The fresh capital, layered on top of the $35 billion pledge made in 2025, will widen AWS data center capacity in Mumbai and Hyderabad, extending access to custom AI chips, managed AI services and developer tools for startups, enterprises and government bodies. Alongside the infrastructure push, Amazon plans to open more than 20 new fulfillment centers and over 100 delivery stations across India this year, with an emphasis on reaching tier 3 and tier 4 cities faster.
The India announcement lands against the backdrop of an aggressive global capital expenditure cycle. In its first-quarter 2026 results, Amazon reported cash capital expenditures of $43.2 billion for the quarter, directed predominantly toward AWS and generative AI capacity, as it works toward a full-year 2026 capex plan of roughly $200 billion. AWS revenues grew 28% year over year to $37.6 billion in the quarter, its fastest pace in several years, while AWS operating income reached $14.2 billion. Management has framed this spending as building durable, long-duration infrastructure to meet sustained customer demand for cloud and AI workloads, a thesis that extends naturally to a high-growth, digitally expanding market like India.
The India commitment carries tangible upside. Amazon's cumulative investment in the country since 2010 will cross $88 billion by 2030, with targets of supporting 3.8 million jobs, $80 billion in cumulative ecommerce exports, and AI access for 15 million small businesses. However, the scale of capital deployment raises familiar questions. Heavy, multi-year infrastructure spending pressures near-term free cash flow before returns materialize, and execution across new data center geographies adds operational complexity. Whether India's AI and cloud demand scales quickly enough to justify the outlay remains the open variable through the back half of the decade.
Microsoft, Google Take Their Own Bets on India's AI BuildoutAmazon's rivals are pursuing the same opportunity at different scales. Microsoft (MSFT - Free Report) has committed $17.5 billion to India's AI and cloud infrastructure between 2026 and 2029, its largest Asia investment, anchored by a new Hyderabad cloud region. Alphabet (GOOGL - Free Report) -owned Google, meanwhile, is investing roughly $15 billion through 2030 to build its first AI hub in India, a gigawatt-scale data center campus in Visakhapatnam developed with local partners. While Amazon's $48 billion outlay is the largest of the three, Microsoft and Google are betting that India's expanding developer base and digital economy justify sustained, multi-year capital commitments of their own, intensifying competition among Amazon, Microsoft and Google for India's cloud and AI workloads.
AMZN’s Share Price Performance, Valuation & EstimatesAmazon shares have returned 0.8% in the past six-month period against the Zacks Internet – Commerce industry and the Zacks Retail-Wholesale sector’s decline of 6.7% and 2.3%, respectively.
AMZN’s 6-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, AMZN stock appears overvalued, trading at a forward 12-month price/earnings ratio of 24.89X, higher than the industry’s 20.9X. Amazon has a Value Score of D.
AMZN’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for AMZN’s 2026 earnings is pegged at $8.85 per share, indicating a 23.43% increase from the figure reported in the year-ago quarter.
Amazon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Takeaways MSFT gaming revenues fell 7% to $5.34B as Xbox hardware revenues dropped 33% in fiscal Q3 2026.Microsoft linked content weakness to tough comparisons; results matched guided declines.MSFT is expanding cloud-delivered gaming via Game Pass, streaming and new first-party titles. Microsoft's (MSFT - Free Report) push to expand its gaming division through content and cloud-streaming investment is being weighed against a soft quarter for the segment, raising the question of whether Xbox can meaningfully reinforce the company's broader cloud ecosystem. The trigger: Xbox content and services revenues fell 5% year over year (down 7% in constant currency) in third-quarter fiscal 2026, while Xbox hardware revenues plunged 33%, dragging total gaming revenues down 7% to $5.34 billion. The decline landed inside an otherwise record quarter, with companywide revenues increasing 18% to $82.9 billion and Microsoft Cloud revenues rising 29% to $54.5 billion, highlighting the gap between gaming's trajectory and the rest of the portfolio.
Microsoft attributed the content and services shortfall to a difficult prior-year comparison that had benefited from strong first-party releases, while hardware weakness reflected lower console unit volumes as the current generation matures. CFO Amy Hood had guided for a mid-to-high single-digit decline in total gaming revenues and a mid-single-digit drop in content and services for the quarter; actual results landed at the softer end of that range, meaning the slide was in line with, not worse than, expectations.
Recent developments suggest Microsoft is leaning on cloud-delivered gaming to tie Xbox more closely to its broader ecosystem rather than console hardware. Xbox Wire's June 2026 Games Showcase introduced new first-party titles, including Ninja Theory's Senua, alongside a 25th-anniversary Xbox Series X|S console and controller edition launching in November. Game Pass' steady cadence of additions through June, such as Forza Horizon 6, Persona 5 Royal and Call of Duty: Vanguard, depends heavily on cloud streaming to reach players across devices. An April 2026 Game Pass Ultimate price adjustment had not yet been factored into fiscal third-quarter results and will first appear in fourth-quarter fiscal 2026 numbers.
With hardware revenues shrinking and cloud infrastructure carrying more of the gaming experience, the segment's expansion may matter less for standalone gaming revenues and more for keeping users anchored to Microsoft's cloud platform.
How Gaming Rivals Compare on GrowthUnlike Microsoft's gaming segment, Electronic Arts (EA - Free Report) and Take-Two Interactive (TTWO - Free Report) posted gains in their most recent quarterly results. Electronic Arts reported fourth-quarter fiscal 2026 net bookings of $1.86 billion, up roughly 4% year over year, with net revenues rising 12% to $2.12 billion on strength in Battlefield 6 and Apex Legends. Take-Two Interactive's fiscal fourth-quarter net bookings held flat at $1.58 billion, though GAAP net revenues grew 6% to $1.68 billion, supported by NBA 2K26 and the Grand Theft Auto franchise. Electronic Arts and Take-Two Interactive both leaned on live-service and recurrent consumer spending to offset slower title-driven growth that quarter, a contrast to Microsoft's subscription- and cloud-led approach. Neither Electronic Arts nor Take-Two Interactive operates console hardware, limiting direct comparability with Xbox's mixed results.
MSFT’s Share Price Performance, Valuation & EstimatesMSFT shares have lost 25% in the past six-month period compared with the Zacks Computer – Software industry’s decline of 26.1%. The Zacks Computer and Technology sector has appreciated 12.8% in the same time frame.
MSFT’s 6-Month Price Performance
Image Source: Zacks Investment Research
From a valuation standpoint, MSFT stock appears overvalued, trading at a forward 12-month price/earnings ratio of 18.98X, higher than the industry’s 18.81X. MSFT has a Value Score of D.
MSFT’s Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for MSFT’s fiscal 2026 earnings is pegged at $17.33 per share. The estimate indicates 27.05% year-over-year growth.
Microsoft currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
European regulators say Amazon’s and Microsoft’s cloud businesses should fall under the Digital Markets Act (DMA).
The European Commission said in a Wednesday (June 24) press release that it had informed both tech giants of its preliminary finding that they should be considered “gatekeepers” under the DMA for their cloud computing services, Amazon Web Services (AWS) and Microsoft Azure.
“In both cases, the Commission preliminarily finds that AWS and Azure, the largest and second largest cloud computing services in the EU respectively, are an important gateway between businesses and their customers in the EU,” per the release. “This is the case despite them not meeting the DMA’s quantitative thresholds for designation.”
The DMA, which came into force in 2023, established stringent rules for major online platforms, designed to prevent anti-competitive behavior. The “gatekeeper” designation applies to companies with at least 45 million end users and 10,000 business users in Europe, and a yearly turnover of 7.5 billion euros across the continent for the previous three financial years.
Amazon and Microsoft have been given the gatekeeper designation for other services, but the commission said this label should also apply to their cloud business, which have “achieved significant turnover, and their operational capacity and investments seem to have significantly outpaced those of competitors.”
The EC also notes that AWS and Azure seem to have benefitted from increased AI-related demand for cloud services, and “appear to hold an entrenched and durable position in the EU cloud computing sector, as is evidenced by AWS and Azure’s leading market position over many years.”
A spokesperson for Microsoft said th company was still engaging “constructively” with the commission in a statement provided to PYMNTS.
“The cloud sector in Europe is innovative, highly competitive and an accelerator for growth across the economy,” the statement added. “We remain concerned that ignoring the growing power of Google Cloud and Gemini will tilt the market in a harmful way.”
Amazon issued a statement in response to the EC’s preliminary findings, arguing they “disregard the breadth of cloud services available to European customers and risk deterring European investment and innovation.
“AWS faces healthy competition and customers across Europe have more choice, lower prices, and greater flexibility than ever before,” the company said.
“The EU already has comprehensive cloud regulation through the Data Act, and adding another heavy layer of overlapping regulation under the DMA undermines European competitiveness and access to cutting-edge information technology.”
The company also cites a study published by Copenhagen Economics and commissioned by AWS which found more than 200 active European cloud providers that have held a roughly 15% share of revenue since 2022.
Credit: Unsplash/CC0 Public Domain The EU said Thursday that the cloud services of Amazon and Microsoft should face tougher digital competition rules in Europe because of their dominant position in the sector.
Amazon Web Services (AWS) and Microsoft's Azure are the largest and second-largest cloud computing services in the European Union, respectively.
"These services will only continue to grow in importance, which is why it is essential that we ensure a well-functioning and competitive market," EU antitrust commissioner Teresa Ribera said.
The EU opened a probe in November into whether AWS and Azure should come under the scope of the Digital Markets Act (DMA).
Despite not meeting quantitative thresholds like user numbers, the EU said it could apply the DMA regulations to firms with a "significant impact" on the market, and an entrenched and durable position—which it found that AWS and Azure appear to hold.
The DMA applies to services with more than 45 million monthly active end users in the EU and more than 10,000 yearly active business users.
The move risks further irking Washington, as the U.S. administration under President Donald Trump has railed against the rules, claiming they are an unfair trade barrier.
The companies can now argue against the EU's preliminary findings before a final decision, which could come later this year.
AWS hit out at the preliminary findings, saying they "disregard the breadth of cloud services available to European customers."
An AWS spokesperson said that the company faced "healthy competition" across Europe and that there were already "comprehensive" rules covering the sector.
"We will continue to engage with the commission to reach the right outcome for customers and Europe's digital future," the spokesperson said.
Microsoft said it continued "to engage constructively with the commission."
A spokesperson said the company was "concerned that ignoring the growing power of Google Cloud and Gemini will tilt the market in a harmful way."
U.S. cloud providers make up two-thirds of the EU market. Google Cloud is the third-largest player, but the EU opted not to launch a similar probe into it.
The DMA tells large technology firms it identifies as "gatekeepers" what they can and cannot do on their platforms.
For example, companies have to make sure their platforms are open to rivals to provide their services and allow users to delete any preinstalled apps.
Amazon's Marketplace and Microsoft's operating system already face DMA rules.
The EU is also investigating whether it needs to update the DMA.
Who's behind this story?
Andrew Zinin Master's in physics with research experience. Long-time science news enthusiast. Plays key role in Science X's editorial success. Full profile →
Citation: EU says Amazon, Microsoft cloud services should face stricter rules (2026, June 25) retrieved 25 June 2026 from https://techxplore.com/news/2026-06-eu-amazon-microsoft-cloud-stricter.html
This document is subject to copyright. Apart from any fair dealing for the purpose of private study or research, no part may be reproduced without the written permission. The content is provided for information purposes only.
by Kurt Schlosser on Jun 25, 2026 at 8:50 amJune 25, 2026 at 8:50 am
(Raiseus.ai Image) Amazon, Microsoft and other leading tech companies are joining a new nonpartisan workforce organization launched Thursday aimed at helping American workers navigate the transition to an AI-driven economy.
RAISE US aims to partner with governors, employers, and training organizations to retrain and redeploy workers displaced or affected by AI, with a goal of raising $1 billion in multi-year commitments — more than half of which has already been secured.
The organization is led by former U.S. Commerce Secretary Gina Raimondo, who will serve as CEO, and former Indiana Gov. Eric Holcomb, who will serve as co-chair. The two are pitching the effort as explicitly bipartisan.
“If we build the best AI systems in the world and leave millions of Americans behind, we won’t have won anything; we’ll have automated our own decline,” Raimondo said in a news release. “I believe AI will create new jobs and industries over time, but the transition could be disruptive, and it’s already underway.”
Amazon, Anthropic, Microsoft and the OpenAI Foundation are serving as anchor partners. The coalition also includes more than two dozen companies and philanthropies, among them IBM, Cisco, General Motors, Mastercard, the Rockefeller Foundation, and Pivotal, the organization founded by Melinda French Gates. Initial state partnerships include Arkansas, Connecticut, Maryland, and Utah.
The launch of RAISE US comes amid layoffs and cost-cutting across the tech industry and widespread anxiety — from workers to recent graduates — about AI’s impact on employment. Some employers, including Meta, have cited AI as a reason for cuts, including in Washington state. Amazon CEO Andy Jassy blamed massive layoffs that started last year on a culture correction at the tech giant rather than being AI-driven.
In a blog post Thursday, Amazon Chief Global Affairs & Legal Officer David Zapolsky said investment in workers must keep pace with the technology.
“The transition to an AI-driven economy will create enormous opportunity, but only if we invest now in helping workers develop the skills to seize it,” Zapolsky wrote.
Zapolsky cited Amazon’s own efforts to prepare workers for the AI economy, including its Career Choice program, which has helped more than 300,000 employees earn degrees and certificates over 14 years, and a broader $2.5 billion commitment to skills training through its Future Ready 2030 initiative.
Microsoft said it has already been piloting a model for the kind of worker transition RAISE US aims to scale — cross-training entry-level lawyers across different parts of the organization and equipping them with AI skills so they can be repositioned as technology evolves, The New York Times reported.
“It creates an opportunity to transfer people from jobs that are being eliminated to jobs that are being created,” Microsoft President Brad Smith told the Times.
LOS ANGELES--(BUSINESS WIRE)--Glancy Prongay Wolke & Rotter LLP reminds investors of the upcoming August 11, 2026 deadline to file a lead plaintiff motion in the class action filed on behalf of investors who purchased or otherwise acquired Microsoft Corporation (“Microsoft” or the “Company”) (NASDAQ: MSFT) common stock between May 1, 2025 and January 28, 2026, inclusive (the “Class Period”).IF YOU SUFFERED A LOSS ON YOUR MICROSOFT INVESTMENTS, CLICK HERE TO INQUIRE ABOUT POTENTIALLY PURSUING.
New York, New York--(Newsfile Corp. - June 25, 2026) - Bronstein, Gewirtz & Grossman, LLC, a nationally recognized investor-rights law firm, announces that a class action lawsuit has been filed against Microsoft Corporation (NASDAQ: MSFT) and certain of its officers.
This lawsuit seeks to recover damages against Defendants for alleged violations of the federal securities laws on behalf of all persons and entities that purchased or otherwise acquired Microsoft securities between May 1, 2025 and January 28, 2026, both dates inclusive (the "Class Period"). Such investors are encouraged to join this case by visiting the firm's site: bgandg.com/MSFT.
Microsoft Case Details
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements because they failed to disclose that:
Microsoft's Copilot family of products had experienced significant brand positioning, user experience, usage, data siloing, computational capacity, organizational, and interoperability problems; Microsoft's flagship proprietary AI model ranked well below competitors on a number of benchmark tests; Microsoft needed to increase by billions of dollars its capital expenditures and divert graphics processing unit ("GPU") and central processing unit ("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 research and development ("R&D"); and as a result of the above, Microsoft had failed to convert a significant percentage of its commercial Microsoft 365 users to paid Copilot subscriptions and Microsoft's Copilot offerings had lost market share to rival products, a trend that was increasing.What's Next for Microsoft Investors?
A class action lawsuit has already been filed. If you wish to review a copy of the Complaint, you can visit the firm's site: bgandg.com/MSFT, or you may contact Peretz Bronstein, Esq. or his Client Relations Manager, Nathan Miller, of Bronstein, Gewirtz & Grossman, LLC at 917-590-0911. If you suffered a loss in Microsoft you have until August 11, 2026, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff.
No Cost to Microsoft Investors
We, Bronstein, Gewirtz & Grossman LLC, represent investors in class actions on a contingency fee basis. That means we will ask the court to reimburse us for out-of-pocket expenses and attorneys' fees, usually a percentage of the total recovery, only if we are successful.
Why Bronstein, Gewirtz & Grossman, LLC for Microsoft Securities Class Action?
Bronstein, Gewirtz & Grossman, LLC is a nationally recognized firm that represents investors in securities fraud class actions and shareholder derivative suits. Our firm has recovered hundreds of millions of dollars for investors nationwide. More at www.bgandg.com
"Our practice centers on restoring investor capital and ensuring corporate accountability, which serves to uphold the essential integrity of the marketplace," said Peretz Bronstein, Founding Partner of Bronstein, Gewirtz & Grossman, LLC.
Follow us for updates on LinkedIn, X, Facebook, or Instagram.
Attorney advertising.
Prior results do not guarantee similar outcomes.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/301523
Source: Bronstein, Gewirtz & Grossman, LLC
Ready to Announce with Confidence? Send us a message and a member of our TMX Newsfile team will contact you to discuss your needs.
Microsoft (NASDAQ:MSFT | MSFT Price Prediction) has been one of the cleanest setups in mega-cap tech this year. After a sharp pullback from last summer’s highs, the stock now trades where the analyst community, prediction markets, and our model align. Our 24/7 Wall St. price target for Microsoft is $486.23, and our confidence in that number is high.
The 24/7 Wall St. Price Target at a Glance Metric Value Current Price $365.46 24/7 Wall St. Price Target $486.23 Upside 33.05% Recommendation BUY Confidence Level 90% That implied 33% upside over the next 12 months reflects a stock punished by the broader AI capex debate while the underlying business keeps compounding. With 52 Buy ratings against 3 Hold and 0 Sell, Microsoft enjoys near-unanimous Wall Street support.
A 25% Drawdown Despite Accelerating Fundamentals Microsoft is down 24.83% over the past year and 24.1% year to date, with a 12.69% slide in the past month alone. Shares sit roughly 2% off the 52-week high of $551.05 after retracing from $520 in August 2025.
The fundamentals tell a different story. Q3 FY26, reported April 29, 2026, delivered EPS of $4.27 against a $4.07 estimate and revenue of $82.89 billion, up 18.3% year over year.
Azure grew 40%, Microsoft Cloud reached $54.5 billion, and CEO Satya Nadella highlighted that “our AI business surpassed an annual revenue run rate of $37 billion, up 123% year-over-year.” Commercial RPO sits at $627 billion, up 99%.
Why Bulls See a Breakout Ahead The bull case rests on Azure and Copilot monetization compounding faster than sell-side models. With OpenAI committed to $250 billion of additional Azure spending and Microsoft holding a 27% OpenAI stake worth roughly $135 billion, the revenue pipeline is pre-funded.
Vanguard’s 2026 outlook notes that “U.S. technology stocks could well maintain their momentum given the rate of investment and anticipated earnings growth.” The Street’s average target of $561.39 is well above our base case, and our bull scenario points to $599.61, a 64% return.
What Could Go Wrong Microsoft’s CapEx hit $30.88 billion in Q3 FY26, up 84.39% YoY, and OpenAI investment losses ballooned to $3.1 billion in Q1 FY26 from $523 million a year earlier. If AI ROI disappoints, multiple compression follows.
Insiders have been net sellers across 33 recent transactions, and prediction markets assign just 31.5% odds that Microsoft’s valuation tops Anthropic plus OpenAI by year-end. Bulls counter that heavy CapEx funds the $627 billion backlog driving Azure’s growth. Our bear case lands at $436.35, a 19.4% gain.
Microsoft Price Prediction 2026-2030 My recommendation is buy with 90% confidence, anchored to the 24/7 Wall St. price target of $486.23. At a 26 P/E with 33% ROE and 40% Azure growth, Microsoft is cheaper than its growth profile deserves.
The bull thesis depends on Azure holding 30%+ growth into FY27. The bear thesis hinges on AI CapEx outrunning monetization for another two years.
Here is where the 24/7 Wall St. price target model projects Microsoft could trade, assuming current growth trajectories hold.
Year 24/7 Wall St. Price Target 2026 $415 2027 $486 2028 $572 2029 $673 2030 $791 These projections assume Azure and Copilot continue compounding at current rates. Significant upside or downside could result from the pace of AI monetization and OpenAI’s economics flowing back to Microsoft’s bottom line.
By You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Former Commerce Secretary Gina Raimondo is leading a new nonprofit, backed by some of the biggest names in tech and AI, that aims to better prepare the workforce for what is coming. Mandel Ngan/AFP via Getty Images Some of the biggest names in tech and AI are behind a new organization with ambitious plans to help workers navigate the AI transition.
The OpenAI Foundation, Anthropic, Amazon, and Microsoft are all "anchor partners" on Raise US, a new nonprofit that aims to raise $1 billion to build a national platform to advise governors on how best to prepare their workforces for AI disruption. According to the organization, they have already raised $500 million. (The OpenAI Foundation was a nonprofit created as part of OpenAI's restructuring, which holds a $100 billion equity stake in OpenAI's for-profit arm.)
"America has a technology strategy for leading the global AI competition. It does not yet have a people strategy — and we cannot lead without one," former Commerce Secretary Gina Raimondo, who is leading the group, said in a statement announcing the initiative.
Raise US' initial partnerships are with Arkansas, Connecticut, Maryland, and Utah, an even split between states run by Republican and Democratic governors.
"By working directly with state governments to pilot and scale new workforce models, we can move faster and reach more people than any of us could independently," David Zapolsky, Amazon's chief global affairs and legal officer, wrote in a post explaining the partnership.
In Arkansas, the group is working with Gov. Sarah Huckabee Sanders to stand up an "AI-powered career navigation platform called Arkansas LAUNCH that connects students and job seekers to personalized learning and employer-linked career pathways."
In Maryland, Raise US is working with Gov. Wes Moore to expand service-years for recent high school graduates into fields such as healthcare and education.
Of the initial group, Utah may be one of the most interesting. The state has found itself at the center of backlash over the buildout of AI data centers. Shark Tank star Kevin O'Leary scaled back his proposed data center by nearly half after intense public backlash and political pressure.
The organization said more states will join in the coming months. Elsewhere, Raise US said it wants to work on "real-world pilots" for policies like "short-time compensation and wage insurance."
Raimondo, who was governor of Rhode Island before joining the Biden administration, is leading the effort alongside former Indiana Gov. Eric Holcomb. David Sze, a partner at Greylock, is among the four people who will serve on the organization's board of directors.
In addition to the AI partners, the Raise US advisory board includes a who's who of Corporate America, politics, labor, philanthropy, and economics, including Laurene Powell Jobs, Blackstone CEO Steve Schwarzman, Bank of America co-President Jim DeMare, former IBM CEO Samuel Palmisano, former House Speaker Paul Ryan, AFL-CIO President Liz Shuler, and renowned economist Raj Chetty.
The extent to which AI will disrupt the labor market is hotly contested. Anthropic CEO Dario Amodei has been outspoken in his warnings that AI could eliminate up to half of all entry-level white-collar jobs over the next 1 to 5 years.
AI and tech CEOs have recently sought to pivot away from the job "apocalypse" discussion amid concerns that the rhetoric has fueled AI's declining popularity in the US. OpenAI CEO Sam Altman went so far as to say he was "delighted to be wrong about this."
"I thought that there would have been more impact on entry-level white-collar work jobs being eliminated by now than it's actually happened," Altman said during a May event hosted by the Commonwealth Bank of Australia.
Read next
Brent D. Griffiths You're currently following this author! Want to unfollow? Unsubscribe via the link in your email.
Brent Griffiths is a senior reporter at Business Insider who covers AI and tech.Previously, he worked at the Washington Post as a researcher on Power Up and the Finance 202. He started his career at Politico where he worked on the web production team and covered breaking news. His passion for covering politics has only grown since he cut his teeth covering the presidential campaign as a student journalist. He's also contributed to the Almanac of American Politics.
Key Takeaways AMD powers 191 TOP500 systems, including four of the world's 10 fastest supercomputers.Data center revenues rose 57% in Q1, fueled by strong EPYC and Instinct product sales. AMD shares have jumped 142.7% year to date, beating the tech sector's 15% gain. Advanced Micro Devices (AMD - Free Report) EPYC CPUs and Instinct GPUs now power four of the world's 10 fastest supercomputers and four of the 10 most energy-efficient systems, underscoring its growing presence in high-performance computing (HPC). The company powers 191 systems on the latest TOP500 list, up 11% year over year, while 41% of the newly added systems use AMD technology.
The achievement aligns with AMD's accelerating data center momentum, which management believes will underpin the company's next phase of AI-driven growth. AI is driving demand not only for AMD’s GPUs but also for high-performance CPUs that orchestrate inference and emerging agentic AI workloads. CEO Lisa Su noted that first-quarter data center revenues surged 57% year over year, fueled by strong EPYC and Instinct sales, while server CPU revenues climbed more than 50%.
AMD expects server CPU revenues to grow more than 70% in the second quarter, supported by rising adoption of EPYC processors. AMD is on track to launch sixth-gen EPYC Venice later in 2026, with more customers validating platforms than prior generations. Management also raised its view of the server CPU market to greater than 35% annual growth, reaching over $120 billion by 2030.
At the same time, expanding deployments of Instinct GPUs and Helios rack-scale systems position AMD to capitalize on large-scale AI infrastructure investments and drive long-term data center growth. Meta plans to deploy up to 6 gigawatts of Instinct GPUs, with the first 1-gigawatt deployment powered by a custom MI450-based GPU. AMD management continues to target scaling data center AI revenues to tens of billions annually in 2027.
Tough Competition Hurts AMD’s ProspectsAMD’s prospects suffer from stiff competition. NVIDIA (NVDA - Free Report) and Broadcom (AVGO - Free Report) are major competitors in the Data Center space.
NVIDIA is at the center of AI computing, with its products widely used across data centers, gaming and autonomous vehicles. The company’s newer Hopper 200 and Blackwell GPU platforms are being adopted quickly as customers work to grow their AI infrastructure. Data Center revenues reached $75.2 billion in the first quarter of fiscal 2027, up 92% from a year ago and up 21% sequentially, driven by the ramp-up of Blackwell 300 products and demand for InfiniBand, Spectrum-X Ethernet and NVLink solutions. NVIDIA remains AMD's primary rival in GPU-accelerated supercomputing.
Broadcom is benefiting from strong demand for its networking products and custom AI accelerators. In the second quarter of fiscal 2026, AI semiconductor revenues reached a record $10.8 billion, up 143% year over year and above management’s outlook. Broadcom expects AI semiconductor revenue to reach $16 billion in the third quarter of fiscal 2026, up more than 200% year over year. For fiscal 2026, management expects AI semiconductor revenue of $56 billion, up approximately 180% from fiscal 2025. Broadcom also reiterated that AI semiconductor revenue is expected to exceed $100 billion in fiscal 2027.
AMD’s Share Price Performance, Valuation & EstimatesAMD shares have jumped 142.7% year to date, outperforming the broader Zacks Computer and Technology sector’s rise of 15%.
AMD Stock’s Price Performance
Image Source: Zacks Investment Research
AMD stock is overvalued, with a forward 12-month price/sales of 14.3X compared with the broader sector’s 6.46X. AMD has a Value Score of F.
AMD's Valuation
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for second-quarter 2026 earnings is pegged at $1.60 per share, unchanged over the past 30 days, suggesting 233.3% year-over-year growth.
AMD currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
