Passport to Wall Street

AI Momentum Becomes Alphabet Stock's Biggest Catalyst: Analyst

Benzinga News — Fri, 15 May 2026 13:18:52 -0400

On Friday, Bank of America said investors should expect a heavy artificial intelligence focus at next week's developer conference from Alphabet Inc. (GOOGL ) (GOOG ), with new Gemini AI models, agentic capabilities and smart glasses among the key announcements likely to dominate the event.

BofA Maintains Bullish Alphabet Outlook

In a research note published Friday, BofA analyst Justin Post reiterated a Buy rating on Alphabet and maintained a $430 price forecast, implying about 7% upside from Thursday's close of $401.07.

Alphabet's annual Google I/O developer conference begins May 19. BofA said expectations heading into the event are elevated, but the conference could reinforce confidence in Google's long-term AI positioning through deeper Gemini integration across products and advances in autonomous AI assistants.

However, the analyst warned that a lack of a major "wow" announcement could pressure the stock.

Gemini AI Upgrades And Developer Tools In Focus

The firm expects Google to unveil either Gemini 4 or a major Gemini 3.X upgrade featuring stronger reasoning, coding, multimodal and long-context capabilities, along with faster and cheaper Flash model variants. BofA also expects expanded AI-generated video, image and audio tools, plus more advanced software engineering agents.

Agentic AI Expansion Across Google Ecosystem

BofA said Google could showcase broader "agentic AI" capabilities across Chrome, Gmail, Maps, Calendar, Search and Android, allowing Gemini to autonomously complete tasks such as booking reservations, managing shopping workflows and editing calendars. Chrome may also gain AI-powered browsing tools capable of interacting with websites and executing multi-step actions.

Smart Glasses And Android Updates Expected

The bank also expects updates tied to Android 17, AI-powered operating system initiatives and Project Aura smart glasses, which could launch in the second half of 2026.

Competitive Risks And Valuation Watch

BofA said Google's expanding AI ecosystem could increase competitive pressure on transaction-based internet platforms that depend on search traffic and referral activity, though widespread adoption of AI agents is still likely years away.

The firm said key drivers for Alphabet shares going forward include Gemini innovation, AI-powered improvements across Google products, stronger AI search utility and momentum in smart glasses and operating systems.

However, BofA cautioned that with Alphabet trading near 27 times estimated 2027 earnings, further multiple expansion may require meaningful "AI surprises" from the event.

Alphabet Price Action

GOOGL Stock Price Activity: Alphabet shares were down 1.29% at $395.90 at the time of publication on Friday, according to Benzinga Pro data.

Consumers Are Feeling The Squeeze — And That Could Be Walmart's Biggest Advantage

Benzinga News — Fri, 15 May 2026 13:18:45 -0400

Walmart Inc. (WMT ) shares traded near flat Friday as investors weighed the retailer's defensive positioning ahead of quarterly earnings. Market attention also remained on Walmart's ability to sustain consumer demand and digital momentum during ongoing economic uncertainty.

BofA Securities analyst Christopher Nardone reiterated a Buy rating on the stock, with a price forecast of $150.

Analyst's Take

The company will release its first-quarter earnings results on Thursday, May 21, 2026.

Nardone said consistent sales growth and improving digital margins could support further earnings revisions over the next year.

The analyst expects Walmart's core customer base to remain "resilient" despite persistent macroeconomic uncertainty and elevated fuel prices.

Nardone forecasts first-quarter earnings of 65 cents per share alongside Walmart U.S. comparable sales growth of 4.5%.

Investor expectations for Walmart U.S. comparable sales currently range between 4% and 4.5%. In fact, prolonged economic volatility could help Walmart gain market share as consumers increasingly seek lower prices.

"We expect the core Walmart consumer will prove resilient and think a prolonged period of macro volatility and higher gas prices can accelerate share gains as consumers hunt for value," the analyst said.

The analyst expects management to maintain a cautiously optimistic tone while discussing the company's full-year outlook.

For the quarter to be reported, free shipping, same-day delivery and gas discounts as important drivers supporting customer engagement.

Nardone also pointed to recent Sam's Club membership fee increases across both membership tiers in the U.S.

The analyst viewed Walmart's unchanged executive incentive structure as a sign of strategic continuity under CEO John Furner.

According to Benzinga Pro, WMT stock has gained over 36% in the past year. Investors can gain exposure to the stock via Global X PureCap MSCI Consumer Staples ETF (GXPS ).

WMT Price Action: Walmart shares were down 0.82% at $131.37 at the time of publication on Friday. The stock is approaching its 52-week high of $134.69, according to Benzinga Pro data.

Starbucks Stock Holds Steady As Investors Digest Extensive Corporate Restructuring Plan

Benzinga News — Fri, 15 May 2026 13:18:39 -0400

Shares of Starbucks Corp (SBUX ) are trading flat Friday afternoon, holding steady as investors digest the details of a recently filed Form 8-K. Here's what investors need to know.

Corporate Layoffs And Regional Office Consolidations

The filing, dated May 13, outlines a significant expansion of the company's "Back to Starbucks" turnaround strategy aimed at driving long-term growth. To achieve these goals, the coffee giant is streamlining its global support organization and consolidating its non-retail footprint from its headquarters in Seattle.

The restructuring includes the elimination of 300 U.S. corporate roles across marketing, human resources and supply chain departments, alongside the closure of regional offices in Atlanta, Chicago and Dallas. Starbucks expects to incur approximately $400 million in restructuring charges, with roughly $120 million allocated for employee separation benefits.

Despite these cuts, the company is pivoting toward a new operations hub in Nashville, where state officials are currently debating a $30 million incentive package to support the expansion.

While the immediate costs are substantial, the market's neutral reaction suggests investors are balancing these charges against the potential for improved operational efficiency under the current leadership.

Critical Levels To Watch For SBUX Stock

From a longer-term trend perspective, SBUX is still in a constructive uptrend: it's trading 3.3% above its 20-day SMA, 8% above its 50-day SMA, 11.1% above its 100-day SMA, and 17.2% above its 200-day SMA. That stacked alignment typically signals buyers have been willing to step in on pullbacks rather than sell rallies.

The golden cross that formed in January (50-day SMA moving above the 200-day SMA) remains an important "trend regime" marker, and it helps explain why dips have tended to be bought since the March swing low. The more immediate question is whether the stock can build a new base after the May swing high and May 52-week high, or whether it needs a deeper reset.

For momentum, MACD is the cleaner read right now: it's above its signal line and the histogram is positive, which points to improving momentum versus the prior downswing. In plain English, when MACD is above its signal line, it suggests downside pressure is easing and buyers are regaining control at the margin.

Key Support: $85.50 - a prior buyer-defense zone that lines up with the broader 52-week low area, making it a key "line in the sand" if the trend weakens

SBUX Stock Trades Flat Friday Afternoon

SBUX Stock Price Activity: Starbucks shares were down 0.20% at $106.20 at the time of publication on Friday, according to Benzinga Pro data.

Semiconductor Stocks Trade Like 1720's 'Mississippi Bubble,' Top Wall Street Analyst Warns

Benzinga News — Fri, 15 May 2026 13:18:32 -0400

Semiconductor stocks just hit a deviation from trend that history has recorded only twice before, and on both occasions, the rally that produced it ended in collapse.

Michael Hartnett, chief investment strategist at Bank of America, wrote in his Friday "Flow Show" note that the SOX semiconductor index - as closely tracked by the iShares PHLX SOX Semiconductor Sector Index Fund (SOXX ) - is trading 62% above its 200-day moving average.

The only comparable readings in the data dating back to 1700 came from the French market at the peak of the Mississippi Bubble in 1720 and from the Nasdaq at the peak of the dot-com bubble in March 2000.

"SOX semiconductor index remarkably trading 62% above 200dma, comparable only to French market at peak Mississippi bubble," Hartnett said.

Past Bubbles Peaked 35% Above 200-Day Average: SOX Today Is At 62%

What Was The Mississippi Bubble

The Mississippi Bubble is the first true stock market mania in modern history.

It was engineered by a Scottish financier named John Law, who in 1716 convinced the French regent to let him set up a national bank that issued paper money, then bundled it with a trading company called the Compagnie des Indes that held exclusive rights to develop France's colonies along the Mississippi River.

Shares started at 500 livres in January 1719. By December that year, they had reached 10,000, a 1,900% gain in under 12 months.

The word millionaire was coined in Paris during this episode to describe the new fortunes. Investors mortgaged estates, servants speculated alongside aristocrats, and the open-air market on rue Quincampoix needed soldiers at night to keep order.

The mechanism was simple and fragile. Law printed banknotes to fund share purchases, which pushed share prices higher, which justified printing more notes.

When the first wave of holders tried to convert paper gains into gold in early 1720, the redemption system buckled. Shares fell to 2,000 livres by September and 1,000 by December.

The paper currency went worthless, France entered a deep recession, and Law fled the country.

Why Hartnett Is Reaching For 1720

At the dotcom peak in March 2000, the Nasdaq Composite traded 55% above its 200-day moving average before falling 78% over the next two and a half years.

Semiconductor stocks are currently sitting between the Nasdaq of 2000 and France of 1720, closer to the latter than the former.

Hartnett lists the symptoms accompanying this deviation as exponential price action, extreme market concentration, collapsing volatility, and stocks pulling bond yields higher rather than the reverse, which he describes as the reason a melt-up scenario has become the consensus base case rather than the contrarian view.

What It Means For Investors

Deviation from a 200-day moving average is not a timing signal. The Nasdaq held above 50% from trend for several months before breaking in March 2000.

The Mississippi Company traded near its peak for half a year before unwinding. What the indicator measures is fragility, not the trigger.

The trigger, when it comes, has historically been small. In 1720 it was a handful of investors trying to redeem paper for gold. In 2000 it was a news headline about Japan slipping into recession. The structure was already loaded. The match arrived last.

Whether the AI infrastructure cycle produces real productivity gains is a separate question from whether semiconductor prices have run ahead of the math that supports them.

Hartnett is not saying the technology is fake.

He is indicating the price is doing something only two prior assets have ever done, and neither of them ended well.

Nvidia Stock Tops Robinhood's Most Traded List For First Four Months Of 2026: Here's The Top 10

Benzinga News — Fri, 15 May 2026 13:18:27 -0400

Robinhood Markets Inc (HOOD ) is one of the largest online brokerages and remains popular with retail investors and younger traders. The company recently unveiled several key statistics about its users for the first four months of 2026, including which 10 stocks were traded the most. Robinhood announced the launch of a new, free newsletter that will provide news and data for investors. Alongside the rollout of the EntryPoint, Robinhood unveiled some trader habits for the first four months of 2026.

This included showing some times when retail investors on Robinhood bought the dip after macroeconomic events sent the stock market lower.

Robinhood also showed which stocks were traded the most during the first four months, based on net buying and net selling.

Here are the top 10 stocks by overall trading volume, buys and sales, for Jan. 1 through May 1, 2026:

NVIDIA Corp (NVDA )
Tesla Inc (TSLA )
Micron Technology (MU )
SanDisk Corp (SNDK )
Robinhood Markets
Microsoft Corp (MSFT )
Advanced Micro Devices (AMD )
Amazon.com Inc (AMZN )
Palantir Technologies (PLTR )
Meta Platforms Inc (META )

The names in the top 10 likely won't be a surprise to most investors, as it includes many of the most popular companies and many of the most valuable companies in the world.

The top 10 includes five of the Magnificent Seven stocks, with Apple Inc (AAPL ) and Alphabet Inc (GOOGL )(GOOG ) missing the cut.

Micron and SanDisk have been two of the top-performing stocks among large caps in 2026. Those stocks rank high on the list by trading volume, showing that Robinhood users were buying and selling the stocks actively during the share price increases.

SpaceX IPO May Expose A Hidden Wall Street Problem: '5x Appreciation' Before Listing

Benzinga News — Fri, 15 May 2026 13:18:21 -0400

By the time most retail investors get access to blockbuster IPOs, the biggest gains may already be gone. That's the argument Tessera PE CEO Chan Ahn is making as debates intensify around SpaceX's public offering.

SpaceX's rise from roughly $350 billion to a reported $1.75 trillion-$2 trillion IPO target highlights a growing imbalance in modern markets, Ahn told Benzinga.

"SpaceX compounded from roughly $350 billion to a reported $1.75-2 trillion IPO target - that's 5x appreciation that happened entirely while retail was locked out," the former Goldman Sachs and JPMorgan executive said. He called it "the biggest wealth-creation event of a generation."

IPO Access Versus IPO Illusion

Ahn argues the issue goes beyond allocation size. Even when companies reserve shares for retail buyers, oversubscribed deals often leave ordinary investors with only tiny positions.

"Allocation is not the same as access," he said, comparing some IPO participation to "a lottery ticket."

According to Ahn, today's market increasingly splits investors into three groups:

Private-market insiders are restricted by lockups,
Retail IPO buyers are receiving limited allocations,
And public-market investors are arriving after most of the appreciation has already occurred.

"That's not a conspiracy," Ahn said. "It's just plumbing."

Tokenization May Solve The Problem

Ahn expects tokenized private-market investing to solve the problem by allowing smaller investors earlier exposure before IPOs.

The timing may matter. Tokenized real-world assets have surpassed $27 billion as of April 2026, reflecting growing institutional and retail interest in blockchain-based ownership structures.

If that trend continues, SpaceX's eventual IPO may become less about the company itself and more about whether Wall Street's traditional access model is breaking down.

One Blue-Chip Stock Is Up 11% While the S&P 500 Struggles

Benzinga News — Fri, 15 May 2026 13:15:44 -0400

The S&P 500 has had a rough 2026. Johnson & Johnson (JNJ ) has not.

JNJ is up 11% year-to-date, just beat first-quarter revenue estimates by half a billion dollars, and crossed $100 billion in annual revenue for the first time in its history. While the broader market hunts for footing, one of Wall Street's oldest blue-chip names is quietly putting up its best numbers in years.

What's driving it - and whether it can last - is a more complicated story. One that involves a 64-year dividend streak, a blockbuster cancer drug pipeline, thousands of pending lawsuits, and a nearly unanimous buy call from Wall Street analysts who've seen all of it and still like the stock.

Johnson & Johnson has always occupied a singular place in both corporate America and on Wall Street.

Exhibit A: JNJ is the only company in the world that can freely use the Red Cross symbol, thanks to a special act of Congress. "No other company in the world owns such a license," says Gardner Harris, author of No More Tears: The Dark Secret of Johnson & Johnson. "The Red Cross symbol is the most cherished in healthcare, one that engenders feelings of trust, respect, and admiration. J&J's ability to link its own brand with a universally recognized emblem of care and reassurance is priceless."

That's just for starters. Among institutional investors, Johnson & Johnson has long been a "buy and hold" cornerstone, and for straightforward reasons. The stock checks nearly every box serious money managers look for in a core holding: durable earnings growth, recession resistance, steady and growing dividends, and revenue streams diversified enough that no single setback can knock the whole thing over.

For years, some analysts have called JNJ a "sleep well at night" stock. Is that still the right call in 2026? Here's what the latest data and the analysts who cover it most closely say.

A Routinely Robust Recommendation

Let's start with the consensus view.

Trading at $230 per share and up 11% year-to-date, a Benzinga review of analyst sentiment from Leerink Partners, Barclays, and Stifel shows approximately 12% share-price upside from current levels, with an average price target of $257.

Benzinga's analysis flags JNJ as a top pick primarily because of its strong performance in MedTech and Vision, as well as plans to spin off its Ortho business in 2027 and the upcoming launch of TECNIS PureSee. "JNJ's focus on double-digit sales growth and disciplined capital allocation makes it a favorable investment choice," the analysis noted, "with expansion opportunities in the Asia Pacific region."

Recent analyst activity reinforces that view. On May 13, Leerink Partners analyst David Risinger upgraded JNJ to Outperform from Market Perform with a $265 price target. In March, Barclays' Matt Miksic reiterated a Hold with a $255 target. Last month, Stifel's Rick Wise raised his price target from $220 to $250, citing an "all-around-positive 'beat and raise' performance" from management. RBC maintained its Outperform rating after what it called a "strong first-quarter performance," while Bernstein highlighted 5.3% organic sales growth despite significant patent headwinds.

TD Cowen, which kept its Buy rating with a $250 target, said JNJ "boasts the key qualities we seek in pharma stocks."

Diversification Is the Whole Game

One reason analysts stay bullish regardless of near-term noise: J&J is not really a single company. It's 28 of them, each generating more than $1 billion a year.

Unlike pure-play pharmaceutical companies that rise and fall with a handful of blockbuster drugs, J&J operates across both Innovative Medicine and MedTech, two businesses large enough that weakness in one can be absorbed by strength in the other. That structural diversification is what keeps institutional investors comfortable holding the stock through rough patches.

The numbers support it. In Q1 2026, J&J reported $24.1 billion in sales, up 9.9% and ahead of Wall Street's $23.6 billion estimate. Innovative Medicine grew 11%, MedTech grew 7.7%, and the pharmaceutical division alone generated $15.4 billion, up 11.2% from $13.9 billion a year earlier. For full-year 2026, J&J now expects approximately $100.8 billion in revenue, the first time in company history it has crossed the $100 billion threshold, and adjusted EPS of approximately $11.55 at the midpoint.

A Dividend King, by a Wide Margin

J&J doesn't just pay dividends, it has raised them every year for 64 consecutive years, earning Dividend King status with room to spare. (The threshold for that designation is 50 consecutive years of increases.)

The most recent hike, announced in April and payable in May, was a 3.1% increase from $1.30 to $1.34 per share per quarter. That brings the annual dividend to $5.36 per share, up from $5.20. Since 2021, J&J has raised its dividend five times, at an average annual increase of 5.37%.

That combination of consistency and growth makes JNJ a natural magnet for retirees, pension funds, and income-focused institutional managers, investors who prize durable cash flow and disciplined management above almost everything else. J&J reliably delivers both.

Oncology: A Burgeoning Revenue Engine

Beyond the headline numbers, there's a specific reason analysts are increasingly excited about J&J's long-term trajectory: oncology.

J&J generated more than $25 billion in oncology sales in 2025, led by two blockbusters. Darzalex, used to treat multiple myeloma, continues to drive strong global demand. Carvykti, J&J's CAR-T cell therapy, is viewed by several analysts as one of the company's most important future growth drivers. Meanwhile, newer immunology products like Tremfya are helping offset revenue lost to biosimilar competition for Stelara.

CEO Joaquin Duato has made no secret of the strategy: concentrate investment in high-growth therapeutic areas, oncology, neuroscience, immunology, and build a clear path to double-digit growth by 2030. Analysts appear increasingly convinced it's working.

MedTech is part of that story, too. With sales up 7.7% to $8.6 billion year-over-year, the division spans cardiovascular devices, orthopedics, surgical systems, and robotic-assisted surgery. Analysts have specifically flagged J&J's Ottava robotic surgery platform as a potential powerhouse in what is expected to be one of healthcare's fastest-growing markets.

A Few Notes of Caution

JNJ is not a risk-free investment, and no honest analyst is claiming otherwise.

The company still faces thousands of pending talcum-powder lawsuits, creating a legal liability overhang that is difficult to fully quantify. Stelara, one of J&J's highest-earning drugs, saw sales drop roughly 60% year-over-year in the latest quarter following biosimilar competition. Patent expirations remain a structural headwind, and J&J faces a competitive M&A environment as it pursues early-stage pharmaceutical deals.

Some analysts also believe management's guidance is deliberately conservative, possibly limiting near-term upside. Leerink's Risinger, despite his recent upgrade, described the updated outlook as "conservative" relative to the company's actual operating performance.

Benzinga's analysis flagged the litigation risks specifically, noting they "could weigh on the company's financial performance in the coming years, despite its strong position in the MedTech market and a diverse portfolio of products."

Most analysts, however, appear comfortable with those risks - because of what's on the other side of the ledger: scale, diversification, a blue-chip dividend track record, and a pipeline pointing toward double-digit growth. In a market where the S&P 500 has spent 2026 looking for its footing, JNJ offers something increasingly rare: a large-cap stock that income investors and growth investors can both defend owning.

For investors who need to sleep at night, that might be exactly enough.

Uber-Waymo Partnership On The Rocks? Exec Shares 'Scary' SF Robotaxi Moment, Slam AV Rollout

Benzinga News — Fri, 15 May 2026 13:15:35 -0400

Uber Technologies Inc.'s (UBER ) partnership with Alphabet Inc.'s (GOOGL ) (GOOG ) Waymo could reportedly hit a sour note as executives from the ride-hailing giant have criticized the latter's expansion. Waymo's Expansion, Scary San Francisco Moment

Uber executives have painted AV-only operators like Waymo as less scalable and less reliable than a hybrid approach, with human drivers and Robotaxis being offered on ride-hailing platforms, Business Insider reported on Thursday.

Uber's Chief Technology Officer, Praveen Neppalli, also shared a video in April on the social media platform X, showing a Waymo vehicle overtaking a bus in the wrong lane and trying to squeeze between his vehicle and the bus. "Big fan of AVs, but perception ≠ judgment. Edge cases matter!" he said in the post.

The report also shared a statement from February by Dara Khosrowshahi, Uber's CEO, who said that AVs were progressing rapidly and held "enormous potential," but also said that AVs were "far from capable of meeting the level of reliability" that customers expected.

Uber is also looking at AVs deploying in wealthy neighborhoods, but failing to deploy in cities like Oakland, where it has permission, the report said, citing a white paper released by Axios last week. Uber has called for equitable distribution across markets, the report said.

Uber's Robotaxi Bet

Uber has been expanding aggressively in the Robotaxi sector, announcing partnerships with various operators besides Waymo throughout the globe. Uber also outlined its commitment to invest $10 billion towards bolstering its Robotaxi chops via equity investments and fleet expansions.

Khosrowshahi also called the AV sector a "trillion-dollar" total addressable market (TAM), reaffirming bullish sentiments on self-driving vehicles. While Waymo is Uber's sole partner in the U.S. robotaxi space, Khosrowshahi has also expressed optimism about incorporating Tesla Inc. (TSLA ) vehicles on its platform once the technology advances.

According to Benzinga Edge Rankings, Uber scores well on the Growth metric and offers satisfactory Value. It also provides a favorable price trend in the Short term.

Price Action: Uber Technologies shares were down 0.62% at $74.24 during premarket trading on Friday.

From Ukraine To UK, Palantir's Global Military Dominance Faces New Resistance

Benzinga News — Fri, 15 May 2026 13:15:30 -0400

Palantir Technologies Inc (PLTR ) remains at the center of growing debate over military technology, European defense spending, and government dependence on U.S. software providers as CEO Alex Karp pushes the company's battlefield-tested systems globally. Karp Pushes Back Against Germany's Resistance

Palantir CEO Alex Karp criticized Germany after senior officials signaled that the country's military does not plan to award contracts to the U.S. data analytics company.

Germany's Digital Minister Karsten Wildberger said he wants Europe to develop a long-term alternative to Palantir.

At the same time, Bundeswehr cyber chief Vice Admiral Thomas Daum raised concerns about granting industry staff access to national military databases, Business Insider reported on Thursday.

Karp argued that major global battlefields already rely on Palantir technologies and questioned Germany's reluctance to adopt the company despite its deep German connections through co-founder Peter Thiel and Karp's own academic background in Germany.

Palantir Highlights Ukraine Battlefield Role

Following meetings with Ukrainian President Volodymyr Zelenskyy and Minister Mykhailo Fedorov in Kyiv, Karp praised Ukraine for building what he described as one of the world's most advanced military defense systems.

Karp said Palantir's software acts as an "operating system for war," helping Ukraine manage battlefield operations using real-time data and targeting systems.

He also urged European governments to adopt proven Ukrainian battlefield technologies rather than rely on what he described as untested defense products.

Governments Reevaluate Reliance On Palantir Systems

Palantir also faced renewed scrutiny in the U.K., where the Ministry of Housing, Communities and Local Government replaced a refugee-housing platform originally built on Palantir's Foundry software with an internally developed system.

The department said the in-house replacement reduced operating costs by millions of pounds annually while improving flexibility and control over data and software code, BBC reported on Friday.

Former government technology adviser Terence Eden described the transition as an important step toward more "sovereign technology."

At the same time, BCS deputy president Emma Logan said external vendors like Palantir still provide valuable speed and expertise for urgent national projects.

Earnings & Analyst Outlook

Looking further out, the next major catalyst for the stock arrives with the August 3, 2026 (estimated) earnings report.

EPS Estimate: 33 cents (Up from 16 cents YoY)
Revenue Estimate: $1.81 billion (Up from $1.00 billion YoY)
Valuation: P/E of 150.3x (Indicates premium valuation relative to peers)

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $189.38. Recent analyst moves include:

Citigroup: Buy (Raises Forecast to $225.00) (May 6)
Argus Research: Upgraded to Buy (Forecast $190.00) (May 6)
RBC Capital: Underperform (Maintains Forecast to $90.00) (May 5)

PLTR Price Action: Palantir Technologies shares were down 0.19% at $133.47 at the time of publication on Friday, according to Benzinga Pro data.

The AI Trade Is Evolving — And This New ETF Is Chasing Humanoids, Drones And Smart Factories

Benzinga News — Fri, 15 May 2026 13:15:13 -0400

Asset manager WisdomTree Inc (WT ) has launched the WisdomTree Physical AI, Humanoids, and Drones Fund (WDRN ), aiming to tap into what the firm sees as the "next phase of artificial intelligence" - the shift from digital AI tools to real-world autonomous systems. The ETF tracks the WisdomTree Physical AI, Humanoids, and Drones Index.

The fund is designed to provide exposure to companies developing or enabling "Physical AI Activities," including robotics, drones, autonomous vehicles, AI-powered manufacturing systems and intelligent automation technologies across industries such as healthcare, agriculture, construction and defense.

Key features of WDRN ETF:

Targets companies involved in humanoid robotics, autonomous drones, smart manufacturing and AI-driven logistics systems.
Provides exposure across five Physical AI verticals, including robotics, mobility and warehouse automation.
Expands beyond traditional AI software and semiconductor-heavy technology ETFs.
Includes companies across different market capitalizations, regions and development stages.
Uses a systematic, rules-based index methodology with quarterly rebalancing.
Trades with a management fee of 0.45%.

The launch comes as investor appetite for AI-themed ETFs continues to surge following the explosive rally in semiconductor and automation stocks tied to the generative AI boom.

WisdomTree said AI is increasingly moving beyond chatbots and software-based tools into physical environments where machines can perceive surroundings, make decisions and execute tasks autonomously. Industry forecasts suggest the humanoid robotics market alone could grow into a multibillion-dollar opportunity over the next decade, while autonomous drone adoption is accelerating across defense, logistics and industrial inspection.

According to Fortune Business Insights, the global humanoid robot market size is expected to grow to $165.13 billion by 2034 at a CAGR of 50.60% from 2026 to 2034.

Christopher Gannatti, Global Head of Research at WisdomTree, said advances in AI models, robotics and computing are driving adoption across autonomous transportation, smart factories and military drone systems. The company believes the trend could create a major new investment cycle tied to semiconductors, industrial automation and infrastructure supporting physical AI deployment.

WDRN seeks to capture that opportunity through a diversified, rules-based portfolio spanning multiple sectors, geographies and market capitalizations tied to the evolving robotics ecosystem.

Applied Materials Sees Multi-Year AI Boom Driving Record Revenue And Growth Through 2028

Benzinga News — Fri, 15 May 2026 13:14:34 -0400

Shares of Applied Materials Inc (AMAT )were trading lower on Friday, even after the company reported upbeat fiscal second-quarter results on Thursday.

Here are the key analyst insights:

BofA Securities analyst Vivek Arya maintained a Buy rating, while raising the price target from $465 to $540.
Needham analyst Charles Shi reaffirmed a Buy rating, while lifting the price target from $440 to $530.
KeyBanc Capital Markets analyst Steve Barger reiterated an Overweight rating, while raising the price target from $450 to $550.
Cantor Fitzgerald analyst C.J. Muse maintained an Overweight rating, while taking the price target higher from $550 to $575.
RBC Capital Markets analyst Srini Pajjuri reiterated an Outperform rating, while raising the price target from $500 to $520.

BofA Securities: Applied Materials reported record revenues and earnings that topped consensus estimates by 3% and 8%, respectively, Arya said in a note. The company raised its 2026 Systems sales growth projection to 30%, from the prior guide of 20%, he added.

Demand is growing across Applied Materials' "most strategic markets" of leading-edge Foundry and Logic, DRAM (dynamic random-access memory) and advanced packaging, which is expected to account for more than 80% of WFE (wafer fabrication equipment) growth in 2026, the analyst stated. Management has "unprecedented visibility" into 2027 and 2028, "with customers providing rolling eight-quarter forecasts," he further wrote.

Needham: Applied Materials reported strong results, with revenue growing 13% sequentially to $7.91 billion and coming at the high end of its guidance range, Shi said. Non-GAAP gross margins reached 50% on a favorable mix, he added.

Management guided to revenue of $8.95 billion for the fiscal third quarter, representing another 13% sequential growth, with Semi Systems expected to grow 16%, the analyst stated. Management raised their 2026 outlook for Semi Systems growth, with more than 80% of WFE growth expected from leading-edge foundry/logic, DRAM and advanced packaging, he further stated.

KeyBanc Capital Markets: Applied Materials' guidance highlighted more than 30% Systems growth in 2026, with momentum continuing into next year, Barger said.

The company has a "broad-based strategic net" that simultaneously captures multiple growth opportunities, the analyst stated. Apart from this, product innovations are driving margin expansion, he noted.

"With forward visibility at all time highs, AMAT anticipates secular WFE growth into 2028," the analyst further wrote.

Cantor Fitzgerald: Applied Materials reported revenues of $16.9 billion and earnings of $6.22 per share, comfortably topping consensus estimates of $15.8 billion and $5.54 per share, respectively, Muse said. The company is likely to gain "meaningful" market share in WFE in 2026, with "very strong leverage" to leading edge F/L, DRAM and advanced packaging driving these gains, he added.

The analyst expects Applied Materials to reach earnings of $13.50 per share in 2026, much higher than consensus of $12.03 per share. Also, management expects 2027 to be "another strong, record year," he further wrote.

RBC Capital Markets: Applied Materials reported gross margin of 50.0%, well ahead of consensus of 49.2%, Pajjuri said. He added that the midpoint of management's guidance for the fiscal third quarter, at revenues of $8.95 billion and earnings of $3.36 per share, also came well above consensus estimates.

The company raised its 2026 guidance to 30% growth in its Systems business, from its prior projection of 20%, while signaling another strong growth year in 2027, the analyst stated. "Looking ahead, we expect double-digit WFE growth to sustain for the next 2-3 years driven by GenAI, extreme tightness in Memory, and re emerging competition in Advanced Foundry," he further wrote.

AMAT Price Action: Applied Materials shares were down 1.48% at $434.03 at the time of publication on Friday. The stock is trading near its 52-week high of $448.45, according to Benzinga Pro data.

Trump Vs. NFL: Netflix Lands More Games After President's Streaming Criticism

Benzinga News — Fri, 15 May 2026 13:14:14 -0400

President Donald Trump recently spoke out about the growing number of National Football League games that are being pushed to streaming platforms. He may not want to hear the latest Netflix Inc (NFLX ) NFL announcement with the streaming giant adding more games for the upcoming season.

After airing two NFL games on Christmas Day in each of the past two football seasons, Netflix is expanding its lineup of live games for the 2026 season.

The streaming giant will air a total of five NFL games for the 2026 season and will be the home of the NFL Honors award show the week of the Super Bowl in February 2027.

Netflix will stream the following games live:

Week 1 matchup: Los Angeles Rams versus San Francisco 49ers, Sept. 10 in Australia; the first-ever regular-season NFL game in the country
Thanksgiving Eve: Green Bay Packers versus Los Angeles Rams, Wed. Nov. 25; the first-ever Thanksgiving Eve game for the NFL
Christmas Day: Netflix will stream two unannounced games on Christmas at 1 p.m. ET and 4:30 p.m. ET
Week 18: Netflix will stream an unannounced week 18 1 p.m. game for the last week of the regular season

The NFL schedule will officially be unveiled on Thursday, May 14, with several unannounced games filled in. The week 18 game may be announced or unveiled at a later time, as that week features teams fighting for playoff spots and positioning, and the NFL and Netflix may want to wait to lock in a matchup.

Netflix also signed a four-year partnership extension through the 2029-2030 season. "Netflix will now be a part of the entire NFL season from September through February at the Super Bowl every year," the streaming company said.

Last year, Netflix set a record with an average of 27.5 million U.S. viewers on Christmas watching the Detroit Lions and Minnesota Vikings. A game between the Dallas Cowboys and Washington Commanders on Christmas averaged 19.9 million U.S. viewers.

President Trump Speaks Out

In a recent interview, Trump criticized the NFL's decision to put more games on streaming platforms. The president argued that the NFL could be "killing the golden goose."

"They're making a lot of money. They could make a little bit less," Trump said.

The president said consumers will have to pay $1,000 a game. It was unclear what $1,000 figure Trump was referring to at the time.

Of the professional sports leagues in North America, the NFL is among the most fan-friendly for games on broadcast television. The league has partnerships with Fox Corp (FOX ), Paramount Skydance (PSKY ) and Comcast Corp (CMCSA ) for games that air on Sunday.

The league's non-broadcast games currently include Thursday Night Football with Amazon.com Inc (AMZN ), the exclusive Netflix Christmas Day games and ESPN's Monday Night Football. ESPN is owned by Walt Disney Co (DIS ). Some Monday Night Football games are also carried on ABC, the broadcast channel owned by Disney.

The NFL is renegotiating its 11-year media rights deal currently in place with the partners above, outside of Netflix. The league could choose to put more games on streaming as more media companies and streaming companies bid for the lucrative rights to NFL games, which rank among the most-watched programs every year.

Trump hinted that his administration could intervene and take on the NFL over its streaming push.

Netflix Looks to Live Content

For Netflix, betting on live sports and live content is a play for keeping its subscribers on ad-free plans and growing its ad-supported plan business.

Live sports are one of the key areas where advertisers are spending money, counting on strong viewership during the event, unlike traditional TV shows that may get viewership split between live and on-demand viewing.

Netflix announced it reached the 250 million monthly active user milestone for its ad-supported plan at a presentation this week, as reported by The Verge.

The additional games will likely provide a boost to Netflix's overall subscribers and to its advertising revenue. The boost will also be split over several months with games in September, November, December and January.

OpenAI-Apple Relationship Deteriorates As OpenAI Prepares Legal Case

Benzinga News — Fri, 15 May 2026 13:13:57 -0400

Sam Altman's OpenAI is preparing possible legal action against Apple Inc. (AAPL ), according to a Bloomberg report Thursday, as the two-year-old ChatGPT partnership frays just weeks before Apple's biggest AI reveal of the year.

OpenAI lawyers are working with an outside firm on options that could include a breach-of-contract notice, people familiar with the matter told Bloomberg's Mark Gurman. A full lawsuit is not the only option on the table.

OpenAI Says Apple Did Not Deliver

The startup believed the 2024 deal that wove ChatGPT into Siri and Apple's Writing Tools would funnel iPhone users into paid ChatGPT subscriptions.

"We have done everything from a product perspective," an OpenAI executive told Bloomberg. "They have not, and worse, they haven't even made an honest effort."

OpenAI initially believed the arrangement could generate billions of dollars per year in subscription revenue, according to the report. The startup now believes the Apple implementation has hurt OpenAI's brand.

The tension extends beyond software. OpenAI last year acquired a hardware startup co-founded by former Apple design chief Jony Ive, and has poached Apple engineers with stock packages worth millions more than Apple offers.

Polymarket Eyes The Ive Device

The "What kind of product will OpenAI announce in 2026?" market has Earbuds/Headphones leading at 31%, Glasses at 27% and a Smartphone at 21%, on more than $258,000 in volume.

Any of those categories would put OpenAI in direct hardware competition with an Apple product line.

The Musk Trial Clock

Any legal move likely will not come until after the conclusion of OpenAI's trial with Elon Musk, which entered closing arguments Thursday in Oakland with jury deliberations expected next week.

Polymarket gives Musk a 34% chance of winning the case against Altman, on more than $389,000 in volume.

A Musk win would tie up OpenAI's legal bandwidth and likely delay any move against Apple further.

WWDC Sets The Stage

Apple will unveil iOS 27 at its Worldwide Developers Conference on June 8. Bloomberg reports the update will introduce a new Extensions system that opens Siri up to rival AI providers including Anthropic's Claude and Alphabet Inc. (GOOGL ) (GOOG ) Gemini, ending OpenAI's unique role inside Apple software.

Apple is separately paying Google roughly $1 billion annually for AI technology to power its underlying models.

Apple is trading around $297, slightly off its all-time high set Wednesday.

Apple did not immediately respond to a request for comment from Benzinga.

Trump's FCC Chair Warns Elon Musk Critics: Betting Against Him Has Cost People 'A Lot Of Money'

Benzinga News — Fri, 15 May 2026 13:13:41 -0400

President Donald Trump's Federal Communications Commission (FCC) Chair Brendan Carr has backed Elon Musk-led SpaceX's Starlink satellite internet service amid a partnership between Verizon Communications Inc. (VZ ) and T-Mobile (TMUS ).

Betting Against Elon Musk Is Risky

In an interview with Reuters on Thursday, Carr expressed his optimism about SpaceX's efforts in the satellite communications sector as the FCC approved the sale of EchoStar Corp's (SATS ) $40 billion spectrum to SpaceX and AT&T Inc. (T ).

"I would be very hesitant betting against Elon Musk," Carr said in an interview, according to Reuters' David Shepardson via X. He added that a lot of people had tried to do so, but failed and have lost "a lot of money" in doing so. Carr also shared that Musk wasn't someone who spends money acquiring things, the post said.

"To see this level of investment by SpaceX/Starlink in spectrum," Carr said, illustrates the company's confidence in "direct-to-cell" or other technologies SpaceX was developing.

SpaceX's IPO Faces Backlash

The news comes as SpaceX's upcoming IPO is facing pushback from pension leaders and comptrollers from California and New York, who decried a "management-favorable" structure adopted by the commercial space flight giant for its IPO.

The leaders also flagged Musk's CEO compensation packages from SpaceX and Tesla Inc. (TSLA ), saying that the two companies could risk competing against one another.

Delta Airlines Chooses Amazon Leo

Delta Air Lines Inc. (DAL ) announced it was entering an agreement with Amazon.com Inc.'s (AMZN ) Leo satellite internet service, much to the dismay of Musk, who said that SpaceX couldn't reach an agreement as Delta was insistent on providing Starlink access via its Delta Sync portal, which Musk refused.

Musk also outlined that SpaceX "deliberately" entered into agreements with airlines that offered less revenue to expand access to Starlink and ensure it reached customers easily. Delta has since refuted Musk's comments, saying Starlink could have been offered even on its Sync portal.

Only 39% Of Consumers Trust AI For Purchases, Yet Starbucks Is Using ChatGPT To Pick Your Next Drink

Benzinga News — Thu, 14 May 2026 14:44:25 -0400

ChatGPT is becoming a new way for Starbucks (SBUX ) customers to discover drinks, even as most consumers still do not trust artificial intelligence to make everyday purchases.

Only 39% do, according to research from The Harris Poll conducted with Quad (QUAD ) published last month.

Starbucks is testing a beta app inside ChatGPT that recommends drinks based on prompts and photos. The feature allows users to discover drinks inside ChatGPT before completing orders through Starbucks' app or website, the company said.

Starbucks Brings Drink Discovery Into ChatGPT

Starbucks launched the beta app inside ChatGPT last month, saying customers are increasingly starting with a feeling rather than a menu when choosing drinks.

Users can enter prompts describing what they feel like drinking or upload images that reflect a mood, outfit or surroundings. The system then generates drink suggestions based on those inputs.

The beta builds on Starbucks' existing drink-discovery features, including Trending Beverages and Secret Menu tools.

Once a drink is selected, users can customize it and choose a store.

A Menu Built For Personalization

The feature lands as Starbucks continues testing ways to make ordering more personal without forcing customers to scroll through the menu. Starbucks Senior Vice President of Digital and Loyalty Paul Riedel recently said the beta app aims to meet customers "right in that moment of inspiration."

Shoppers Want Control When AI Suggests

The same Harris Poll research found that only 34% of Americans are comfortable with AI-driven purchasing for larger items.

It also found that 75% would trust AI shopping less if recommendations were influenced by sponsored placements, while 73% of consumers say being an informed shopper matters more than it did a year ago.

As AI becomes more embedded into everyday consumer experiences, some investors are also looking at companies building next-generation computing and productivity platforms around immersive digital environments and AI-driven workflows.

SpaceX Starship Rocket Launch Could Spark Next Space ETF Rally

Benzinga News — Thu, 14 May 2026 14:43:46 -0400

Space-focused ETFs are gaining momentum ahead of SpaceX's planned Starship Version 3 launch on May 19, as investors increasingly position for what could become a big catalyst for the commercial space economy.

The Flight 12 mission from Starbase, Texas, will mark the first launch of Starship V3, the latest generation of SpaceX's fully reusable rocket system. The company says the upgraded vehicle includes redesigned Raptor engines and a new architecture aimed at enabling rapid reuse, orbital deployment and next-generation Starlink missions.

The launch is viewed as a critical milestone not only for SpaceX's long-term Mars ambitions, but also for the economics of satellite internet, defense communications and orbital infrastructure.

Wall Street Is Racing To Build Space ETFs

The excitement surrounding the space theme is spilling directly into ETFs.

According to Bloomberg Intelligence ETF analyst Eric Balchunas, at least nine space-themed ETFs have either launched or been filed over the past three months as asset managers rush to capture investor demand ahead of a widely anticipated SpaceX IPO.

The expected public debut draws comparisons to the early days of AI investing, when fund issuers rapidly launched AI-focused ETFs following the rise of generative AI.

Some existing space-linked ETFs have already posted massive gains. The Procure Space ETF (UFO ) has surged 40% YTD and 135% over the past year. Similarly, State Street SPDR S&P Kensho Final Frontiers ETF (ROKT ) has climbed 35% YTD and more than 100% over the last year.

Meanwhile, a more diversified ARK Space & Defense Innovation ETF (ARKX ) has advanced 70% over the past year. The fund holds exposure to aerospace, satellite communications, autonomous technology and defense innovation companies, including several firms tied to the broader space economy.

The ETF rush reflects a growing belief on Wall Street that space is evolving into a long-term infrastructure theme rather than a speculative niche tied to tourism or experimental launches. And the impending launch of the Starship Version 3 rocket, after a long period of speculations, provides the impetus needed to validate the sentiment.

Starlink And AI Infrastructure Are Becoming The Bigger Story

Starship V3 matters because it could significantly expand the deployment capacity of SpaceX's next-generation Starlink satellites, strengthening the company's dominance in global broadband and satellite communications.

SpaceX's Starlink V3 is designed to deliver nearly 10 times the capacity of its earlier hardware. The upgraded satellites feature faster E-band connectivity, advanced propulsion systems and built-in laser links for improved communication between satellites.

While SpaceX has already launched more than 10,000 Starlink satellites, most are older-generation models limited by Falcon 9 launch capacity. V3 is expected to be a major leap forward, enabling significantly faster and more powerful global internet coverage for Starlink's more than 10 million users across over 115 countries.

At the same time, Elon Musk has floated plans for orbital AI data centers powered by solar energy, a concept that links the future of space infrastructure directly to the booming artificial intelligence trade.

That narrative is driving increased interest in publicly traded companies viewed as indirect SpaceX beneficiaries, including Rocket Lab Corp (RKLB ), Intuitive Machines Inc (LUNR ), L3Harris Technologies, Inc (LHX ), and Kratos Defense & Security Solutions Inc (KTOS ).

Many of these names are widely held across space, defense and innovation-focused ETFs.

Space May Be Emerging As Wall Street's Next Major Theme

The broader market shift suggests investors are beginning to treat the orbital economy the same way they approached AI infrastructure over the past two years - as a multi-trillion-dollar ecosystem with applications far beyond its original niche. Unlike earlier space-investing cycles centered on tourism and speculative concepts, the current rally is increasingly tied to real revenue opportunities in communications, launch services, military systems and satellite networks.

According to World Economic Forum research, the global space economy is projected to reach $1.8 trillion by 2035, up from $630 billion in 2023, which is almost two times the global GDP growth rate.

If Starship V3 successfully completes its first flight, the launch could become more than another SpaceX engineering milestone. It may also mark the moment when space ETFs moved from thematic speculation into a serious institutional growth trade.

'We Were A Desktop-Only Search Engine,' Zillow CEO Jeremy Wacksman Says — How A Risky Pivot Helped Build The Most Visited Real Estate App

Benzinga News — Thu, 14 May 2026 14:43:16 -0400

Zillow Group (Z ) CEO Jeremy Wacksman once took on a job he had never done before, and it helped reshape the company's future. The shift from desktop search to mobile real estate shopping became one of the company's biggest growth bets, Wacksman recently told CNBC.

"We were a desktop-only search engine," he said.

The pivot helped lead to Zillow's mobile launch, early profitability, and rise as a dominant real estate platform.

From Desktop Roots To A Mobile Breakthrough

Wacksman joined Zillow as a marketing executive shortly after Apple Inc. (AAPL ) launched the App Store. Soon after, he was tasked with leading Zillow's mobile app development.

He had no experience building apps when he took on the assignment, but needed to figure out how to apply what he knew in a new area. Within about nine months, Zillow launched its first app in April 2009.

The company turned profitable by 2010, and users were looking at homes 20,000 times per hour through the app, according to Zillow. Now 20 years old, the company said it is the most visited real estate app and website in the U.S., citing Comscore data.

Growth Comes With New Pressures

The assignment fits his broader point about career growth. Wacksman told CNBC the role was not what he was hired to do, but it gave him a chance to learn and apply his experience in a new area.

He said careers are rarely a straight ladder, describing a better path as more like a "career jungle gym."

"It's often taking on new assignments that stretch you in new and different ways that lead to the most growth," he said.

The rise of platforms like Zillow helped digitize home shopping. Now a new wave of real estate platforms is trying to modernize investing itself, with some companies offering access to professionally managed rental properties through lower minimum investments.

Ford Stock Extends Rally As Morgan Stanley Sees $10 Billion Energy Opportunity

Benzinga News — Thu, 14 May 2026 14:43:09 -0400

The Ford Motor Company (F ) shares continued rallying Thursday after Morgan Stanley said the automaker's energy storage business could eventually be worth about $10 billion, extending strong momentum from the previous session.

Ford Expands Into Energy Storage

Recent reporting highlighted Ford's launch of Ford Energy, a new subsidiary focused on manufacturing energy storage systems at a Kentucky facility.

The move positions Ford to compete directly with Tesla Inc.'s (TSLA ) Tesla Energy in the grid and home storage market.

Morgan Stanley Highlights CATL Partnership

Morgan Stanley analyst Andrew Percoco maintained an Equal-weight rating and a $14 price target on Ford, citing the company's partnership with CATL as a key advantage in supplying energy storage systems for utilities and data centers.

The firm said Ford's licensing agreement with CATL provides access to lithium iron phosphate battery technology while helping maintain regulatory compliance and operational control.

Morgan Stanley expects Ford to secure supply agreements with large commercial customers, including hyperscalers, in the coming months.

Profitability And Valuation Outlook

Ford entered the energy storage market last year with a $2 billion investment. Morgan Stanley estimates the business could generate 25% gross margins at scale, become EBIT profitable by 2028, and produce $500 million to $600 million in run-rate EBIT at 20 GWh of capacity.

The firm added that investor optimism currently reflects Morgan Stanley's valuation thesis rather than disclosed production targets, contract wins, or detailed financial guidance for the Kentucky expansion.

Ford Stock Technical Analysis: Momentum And Key Levels

Ford's stock has performed well over the past year, gaining 36.62%.

Currently, the stock is trading 13.10% above its 20-day simple moving average (SMA) of $12.35, indicating a bullish trend.

The MACD is above its signal line, suggesting that downside pressure is easing and momentum is improving. This positive momentum aligns with the recent news, reinforcing the stock's upward movement.

Next Update And Wall Street Estimates

Ford is slated to provide its next financial update on July 29, 2026 (estimated).

EPS Estimate: 35 cents (Down from 37 cents YoY)
Revenue Estimate: $44.86 billion (Down from $46.94 billion YoY)

Analyst Consensus & Recent Actions: The stock carries a Hold rating with an average price target of $13.25. Recent analyst moves include:

Morgan Stanley: Equal-Weight (Maintains Target to $14.00) (May 13)
Citigroup: Neutral (Lowers Target to $13.00) (May 4)
TD Cowen: Hold (Lowers Target to $13.00) (May 1)

Top ETFs Holding Ford Stock And Why Fund Flows Matter

Pacer US Cash Cows 100 ETF (COWZ ): 1.94% Weight
Invesco S&P 500 Pure Value ETF (RPV ): 1.73% Weight
First Trust Nasdaq Transportation ETF (FTXR ): 7.12% Weight

Significance: Because F carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

F Stock Price Activity: Ford Motor shares were up 8.29% at $14.69 at the time of publication on Thursday. The stock is trading near its 52-week high of $14.79, according to Benzinga Pro data.

What Is A 'C-Shaped' Economy? Wall Street's New Buzzword Explained

Benzinga News — Thu, 14 May 2026 14:43:04 -0400

When Hilton Worldwide CEO Christopher Nassetta introduced the term "C-shaped economy" during the company's latest earnings call, he added a new phrase to Wall Street's growing list of alphabet-themed economic narratives.

The term appears to describe a potential shift away from the "K-shaped economy" that dominated much of the post-pandemic recovery, where wealthier consumers continued spending while lower- and middle-income households faced pressure from inflation, higher interest rates and rising debt burdens.

Nassetta said easing inflation, expectations for lower interest rates and investment linked to artificial intelligence are beginning to support broader consumer demand, particularly among middle-income households.

How 'C-Shaped' Economy Differs From 'K-Shaped' Recovery

Economists say the concept reflects the idea that consumer spending is becoming less polarized.

"A C-shaped economy is essentially a rebuttal to the K-shaped economy narrative," It's A Working Title's Chief Economist, Bryce Quillin, told Benzinga.

"In practical terms, luxury demand remains healthy, but growth broadens downward into mid-market and value categories."

Quillin said that would mean middle-income consumers are gradually regaining discretionary spending power, allowing companies to see growth outside premium segments.

For Hilton, that shift is showing up in stronger performance across lower- and mid-scale hotel brands rather than demand being concentrated only in luxury travel.

Why The Idea Matters To Investors

Consumer spending trends remain a major focus for investors as companies across sectors continue sending mixed signals about household finances.

Matt Hasan, CEO of aiRESULTS, said the economy still reflects "two very different consumer realities at the same time."

"You can now see luxury travel remaining strong while mass-market retail weakens," Hasan told Benzinga. "Aggregate economic data can appear stable while underlying fragmentation becomes more severe."

Just 'Alphabet Soup'?

Still, not everyone is convinced the U.S. economy is rebalancing.

Rick Munarriz, contributing analyst for The Motley Fool, said Hilton's thesis may be premature given continued pressure on middle-income consumers from higher travel and living costs.

"Some of the Hilton chains that feast on the middle class - Hampton Inn, Homewood Suites, DoubleTree - are going to feel the pinch," Munarriz told Benzinga, pointing to rising costs tied to road trips and airfare.

Munarriz also questioned whether there is enough evidence yet to support the idea of a broad middle-class recovery.

"Nassetta can slap a C in front of the economy and make it real," he said. "I'm just not seeing any signs that his thesis for a C-shaped economy is anything more than alphabet soup."

Meanwhile, sticky inflation driven by Iran war-related energy shocks and rising producer prices has sharply reduced hopes for Federal Reserve rate cuts, with markets increasingly pricing in the risk of prolonged higher interest rates instead.

Coinbase CEO Says 'American Companies Can Finally Start To Build' If CLARITY Act Advances

Benzinga News — Thu, 14 May 2026 10:14:48 -0400

Coinbase Global Inc. (COIN ) CEO Brian Armstrong on Thursday said "all American companies can finally start to build" the crypto industry as the Senate Banking Committee votes on the CLARITY Act. Banks Integrating Stablecoins As Fast As They Can

Armstrong told FOX Business' Maria Bartiromo that he speaks with lots of different bank CEOs and many of them are leaning into crypto as an opportunity to grow their business.

They're integrating stablecoins as fast as they can and understand their clients want access to crypto assets.

"All these funds are now being tokenized and it's just gonna make everything more efficient in the financial system," Armstrong said.

"We're at a place now where all American companies can finally start to build this industry. My hope is that with this legislation getting through we're all gonna be able to work together a little bit more collaboratively," he added.

Armstrong described the latest version of the bill as a "true compromise," saying both the crypto industry and the banking sector have made concessions during negotiations.

Rewards on stablecoins would only apply when there was "some sort of material activity on the account."

Prediction Markets Hit $100 Million Run Rate In Two Months

Beyond trading, Coinbase has been expanding into products tied to subscription, payment and prediction markets, which Armstrong said reached a roughly $100 million revenue run rate after only two months.

The crypto industry spent more than $119 million backing pro-crypto candidates in 2024 hoping to advance the CLARITY Act and a separate bill paving the way for wider adoption of stablecoins, which became law last year.

Banks Fight Stablecoin Rewards Provision

Banks are fighting a key provision in the bill, arguing it will create competition for deposits by giving crypto companies too much leeway to offer rewards on stablecoins.

The American Bankers Association on Sunday publicly called for its member CEOs to push committee senators to tighten the stablecoin language.

The bill needs at least seven Democratic votes to pass the full Senate. Many Democrats oppose the bill, arguing its anti-money laundering provisions are too weak and that it should bar political officials from profiting from crypto ventures.

Senator Elizabeth Warren (D-Mass.) said the bill will put national security and the entire financial system at risk.

Amazon Kills Rufus Chatbot, Rolls Out AI-Powered Alexa Shopping Assistant: Here's What To Know

Benzinga News — Thu, 14 May 2026 10:14:01 -0400

Amazon Inc. (AMZN ) is swapping out its Rufus chatbot for Alexa, positioning it as the core of its AI shopping strategy. The e-commerce giant introduced Alexa for Shopping, a new AI shopping bot on Wednesday. This new tool merges the functionalities of Rufus and Alexa+, utilizing user shopping data to craft a personalized AI shopping assistant.

The Rufus chatbot will be phased out, but its recommendation features and shopping history will be incorporated into Alexa for Shopping. The new tool can be accessed via Amazon's website or app, or through Echo Show displays.

Alexa for Shopping revolutionizes Amazon's search bar into a Q&A engine, enabling users to compare products and schedule purchases when a product hits a certain price. A Prime membership is not necessary to utilize the tool.

Daniel Rausch, Amazon's top Alexa executive, told CNBC that the new offering outperforms other AI shopping tools as it has access to valuable data like customer reviews and a vast product catalog. It can also reliably inform a user about product availability and estimated delivery times.

Rausch said Alexa for Shopping will show ads only when they are relevant and ""enhance" the shopping experience, emphasizing that the feature is meant to expose customers to more products rather than narrow search results.

AI Shopping Race Heats Up

The move comes amid intensifying competition in the AI-powered shopping space, with Amazon integrating Rufus features into Alexa for Shopping to strengthen its position in the rapidly evolving e-commerce market.

In October, OpenAI launched Instant Checkout on ChatGPT, posing a direct threat to Amazon. This was followed by Walmart Inc. (WMT ) integrating ChatGPT's Instant Checkout to offer AI-first shopping. The company described the partnership as a move toward "agentic commerce," where AI predicts customer needs and takes actions on their behalf.

Amazon's Rufus, launched in 2024, had been instrumental in refining searches, summarizing product reviews, and retrieving past orders more efficiently, as explained by CEO Andy Jassy during the company's fourth-quarter earnings call in February 2025.

According to Benzinga Edge Stock Rankings, Amazon.com has a growth score of 95.73 and a momentum rating of 78.65. Benzinga's screener allows you to compare AMZN's performance with its peers.

AMZN Price Action: On a year-to-date basis, Amazon.com shares surged 19.26%, according to Benzinga Pro. On Wednesday, it closed 1.62% higher at $270.13.

Cisco CEO Warns AI Infrastructure Players Without Silicon Will 'Struggle To Be Relevant'

Benzinga News — Thu, 14 May 2026 10:13:54 -0400

Cisco Systems, Inc. (CSCO ) is increasingly making a pitch that sounds less like a traditional networking company and more like an AI infrastructure heavyweight arguing that the next phase of the AI race will be won by companies that control their own silicon. Cisco's Silicon One Push

During Cisco's earnings call, CEO Chuck Robbins delivered one of the clearest statements yet about how rapidly the AI infrastructure market is changing.

"If you don't have silicon you're going to struggle to be relevant to the hyperscalers," Robbins said while discussing Cisco's Silicon One platform and recent hyperscaler design wins.

The comment underscores how AI infrastructure is increasingly becoming a vertically integrated business centered around proprietary chips, supply chain control and hyperscaler-scale systems.

Cisco revealed that AI infrastructure orders from hyperscalers reached $1.9 billion during the quarter, while fiscal 2026 AI infrastructure orders are now expected to reach roughly $9 billion - more than four times fiscal 2025 levels.

AI Networking And Hyperscaler Demand

Cisco said five of the world's top hyperscalers each posted triple-digit order growth during the quarter.

The company also disclosed new Silicon One design wins tied to "scale across" AI deployments, a key part of next-generation AI infrastructure architectures.

Robbins described Silicon One as "a massive differentiator" for Cisco, adding that the company's control over silicon also gives it significantly more control across the supply chain.

"It also gives us a lot more control over the supply chain," Robbins said.

That positioning increasingly resembles the broader AI infrastructure strategy embraced by companies like Nvidia (NVDA ) and Broadcom (AVGO ), where proprietary silicon and tightly managed supply chains have become strategic advantages.

Cisco's AI Infrastructure Expansion

Cisco also said its Acacia optics business generated more than $1 billion in orders during the quarter.

"The Acacia business is on fire," Robbins said.

The company believes AI's rapid expansion is creating massive networking and infrastructure demand beyond just GPUs.

"Traffic across these Networks expected to increase 3x over the next three years because of AI," Robbins said while discussing enterprise network modernization.

Cisco executives also said customers are increasingly preparing infrastructure for AI inferencing and agentic AI workloads.

"The network is incredibly important and moving the bits around with low latency is super important," Robbins said.

By the end of the call, Robbins framed Cisco not as a legacy networking company, but as what he called "the critical infrastructure player for this AI era."

Cuba: The Battery Metal Play Hidden Inside A Geopolitical Crisis

Benzinga News — Thu, 14 May 2026 10:13:45 -0400

January 3, 2026, U.S. forces launched Operation Absolute Resolve and captured Venezuelan President Nicolás Maduro in a operation that lasted 2 hours and 30 minutes.

Cuba lost its primary oil supplier overnight.

On January 29th, 2026, President Trump signed Executive Order 14380, declaring a national emergency, citing Cuba's alliances with Russia, China, Iran, Hamas, and Hezbollah.

By February, the U.S. had imposed the first effective oil blockade of Cuba since the 1962 Missile Crisis.

Then on May 1st, signed Executive Order 14404 extending the sanctions to every individual involved in Cuban:

Energy
Defence
Financial Services

and explicitly, Cuba's mining & metal sectors.

The first ever Cuba sanctions ever issued pursuant to IEEPA. Meaning they target individual foreign persons and companies anywhere in the world. Not just Americans or Cubans.

This is a quasi-declaration of war, referring to Cuba as an "extraordinary threat", while financially squeezing their economy & mining sector.

Cuba's Fortune

Cuba holds approximately 500,000 metric tons of cobalt reserves, the largest amount in the western hemisphere, 7x more than the US has.

While everyone fixates on the politics, they ignore the Western Hemisphere's richest, most strategic deposits of the exact metals powering the EV revolution.

They hold about 5.5 million tons of nickel, the second largest cobalt reserves in the western hemisphere behind Brazil.

These resources are concentrated together in one small Moa region.

Yet since the embargo, Cuban production has cratered. Nickel & cobalt down and the blockade accelerating infrastructure collapse... But the reserves remain, ready for extraction

Compared to the DRC's China-controlled supply, Cuba's deposits are geographically perfect for North America and potentially far cleaner for Western capital once the politics shift.

We can talk ideology, but this is the real endgame.

The Companies That Could Start Extracting

The companies that supply Tesla (TSLA ), GM (GM ), Apple (AAPL ), Stellantis (STLA ), Ford (F ), etc.:

Glencore (GLEN ): The world's largest cobalt producer
Vale (VALE ): A top-tier nickel powerhouse
BHP (BHP ) and Rio Tinto (RIO ): Both diversified nickel, copper, and cobalt operations on a global scale
Anglo American (NGLOY ): Globally diversified miner with significant nickel and cobalt operations already embedded in the EV supply chain

For those bullish on the war, there's a company that's set up in Cuba right now: Sherritt International (TSX ).

A Canadian company that halted ventures since the second-wave of sanctions, which target every international company.

They could technically re-open as soon as conditions improve and see a massive surge.

The Venezuela Playbook & Private Sector Wedge

This follows Venezuela's script almost perfectly:

Cut the oil
Impose the blockade
Declare the emergency
Carve out private-sector exceptions
Negotiate with successors.

The February 25 Treasury move was the strategic architecture empowering private Cuban businesses while the regime suffocates, and US-aligned companies are ready to reap the benefits.

Risks

Power Grid Constraints

Cuba's electrical grid is in a crisis with no clear short-term solution. The country is generating roughly 1,278 MW against a peak demand of ~3,000 MW.

Their deficit of over 1,700 MW isn't only due to the embargos. Between 2010 - 2024 the government invested 32% of their budget into tourism, and only 12% into energy.

Their electrical grid is made up of components from different countries, companies, eras, repairing the system is extremely difficult. Repairing the system alone is estimated to cost $8-10 billion.

Emigration

Cuba's population has dropped over 12% since 2021, from 11.1 million to 9.7 million.

Largely skilled workers and younger professionals.

American companies would either have to bring in their own higher-wage employees, or employ a workforce that is actively leaving the country.

Title III of the Helms-Burton Act

In the event of a regime change, it doesn't take away from the fact that nearly every significant asset on the island has a disputed ownership history going back to the revolution.

Unless it's a priority, this may take years to resolve before investments start pouring in.

Title III gives U.S. nationals a private right of action against any entity "trafficking" in property confiscated by Cuba since 1959. With extraterritorial reach covering both U.S. and international companies.

A Miami jury awarded $30 million against Expedia in April 2025, after Mario Echevarria, a Cuban-American, sued Expedia Group claiming the hotels were on an island his family owned prior to the revolution.

It was overturned a few months later, but it was still a lengthy 6-year legal battle which set the precedent:

Any business touching Cuban risks costly & reputationally damaging lawsuits, regardless of the outcome.

Regulatory Gray-Areas

If there's a regime change, this leaves no existing legal or regulatory framework.

Foreign investment, permitting, and contracts have no legal basis and must be re-written.

That infrastructure would need to be built from scratch, with no guarantee from future administrations.

Bottom Line

Cuba's resources are still strategically valuable.

Trump is repeatedly stating "Cuba is Next", after Iran.

Whether the Cuban regime placates, or there's a full military invasion, these untapped battery metal assets in America's backyard will eventually be extracted.

The companies already feeding the EV giants are positioned to win big if Cuba's acquiesces, or there's regime change.

If Trump's agenda unfolds as stated, the question isn't if, but when Cuba's mining picks up, and how that timeframe looks like.

Amazon, Meta And Microsoft's AI Data Center Push Faces Strong Revolt— Seven In 10 Americans Don't Want Hubs Near Them

Benzinga News — Thu, 14 May 2026 10:13:25 -0400

A new Gallup survey published on Wednesday found most Americans oppose building AI data centers in their local area, highlighting growing public resistance as technology companies rapidly expand artificial intelligence infrastructure.

Gallup said 71% of Americans oppose AI data centers nearby, including 48% who are strongly opposed. Opposition to AI data centers was also significantly higher than opposition to nearby nuclear power plants, which stood at 53%. Respondents cited concerns around electricity use, water consumption, pollution, noise and rising utility bills.

The survey also found opposition was strongest among Americans worried about environmental quality. Democrats were more likely than Republicans to strongly oppose nearby data centers, while women registered higher levels of strong opposition than men.

Buildout Surge

The findings come as major technology companies accelerate spending on AI infrastructure and data center construction.

Earlier this year, Amazon (AMZN ) and Meta Platforms (META ) helped push U.S. data center construction to a record $45.1 billion, surpassing office construction for the first time.

The Kobeissi Letter noted that data center construction has surged 228% since OpenAI launched ChatGPT in late 2022, reflecting how AI demand is reshaping commercial real estate and infrastructure investment.

At the same time, Counterpoint Research estimated the global data center CPU market could expand to roughly $80 billion by 2028 as AI workloads increasingly shift toward inference and real-time processing.

That trend is intensifying competition among Intel (INTC ), Advanced Micro Devices (AMD ) and Arm Holdings (ARM ), while also driving advanced manufacturing demand for Taiwan Semiconductor Manufacturing Company (TSM ).

Backlash Grows

The rapid expansion is also creating political and community resistance.

Last month, Maine Gov. Janet Mills vetoed the nation's first proposed statewide moratorium on new data center construction, though the state still moved toward studying the sector's impact on infrastructure and energy systems.

Meanwhile, CEO Satya Nadella recently described Microsoft (MSFT )'s Wisconsin facility as the "world's most powerful AI datacenter" as the company accelerates its multibillion-dollar global expansion strategy.

Goldman Sachs estimates global data center electricity demand could rise 220% by 2030, underscoring the growing tension between AI expansion and local environmental concerns.

Starbucks Shares Rise As TD Cowen Upgrades To Buy On Turnaround Momentum

Benzinga News — Thu, 14 May 2026 10:13:18 -0400

Starbucks Corp (SBUX ) shares are trading higher on Thursday as buyers keep leaning into the turnaround narrative after a recent quarterly beat and improving store-traffic commentary. Starbucks is also getting a fresh analyst tailwind after TD Cowen upgraded the stock to Buy and lifted its target to $120 from $106. What Is Driving Starbucks Stock Higher?

The latest leg higher follows a second-quarter beat, with revenue of $9.53 billion and adjusted EPS of 50 cents topping consensus calls for $9.13 billion and 42 cents, alongside an operating margin of 9.4% versus 8.2% expected. Management also pointed to the best traffic in three years, helping reinforce the idea that execution is improving.

Starbucks is getting incremental support from TD Cowen's move to Buy and a $120 target, which frames the post-earnings rally as more than a one-day squeeze. The call also stands out because the stock finished Wednesday at $105.95, leaving clear room versus that $120 level.

Starbucks Stock: Key Levels To Watch

Starbucks is pressing into its 52-week high zone, with the current price just below the $108.05 peak, so the next question is whether it can hold above the prior breakout area instead of slipping back toward earlier consolidation. Trend structure remains constructive, with shares trading 5.2% above the 20-day SMA ($102.43), 9.8% above the 50-day SMA ($98.20), and 19% above the 200-day SMA ($90.56).

For momentum, MACD is above its signal line and the histogram is positive, which typically points to improving upside pressure versus the prior downswing (in plain English: buyers are gaining control relative to the recent baseline). The golden cross that formed in January (50-day SMA above the 200-day SMA) adds a longer-term tailwind, but the stock is also extended enough that pullbacks toward trend support can show up quickly if momentum cools.

Key Support: $103.00 - a nearby level where buyers previously stepped in, sitting close to the short-term trend area (near the 20-day moving average zone)

What Is Starbucks And How Does It Operate?

Starbucks stands out as the world's biggest and most recognizable coffee brand, built around highly customizable beverages and a footprint of nearly 41,000 cafes in over 80 countries. About 52% are company-operated, with the rest run by licensees, which gives the model a mix of direct store economics and royalty-like revenue streams.

The company spans North America (74% of revenue as of the end of fiscal 2025), international (21%), and channel development (5%), with revenue coming from stores, licensee royalties, equipment and product sales, ready-to-drink beverages and packaged coffee.

Starbucks Benzinga Edge Scorecard Analysis

Below is the Benzinga Edge scorecard for Starbucks, highlighting its strengths and weaknesses compared to the broader market:

Momentum: Bullish (Score: 72.11) - The stock is showing strong trend persistence versus the broader market.
Value: Weak (Score: 15.71) - Valuation looks stretched, which can limit upside if growth expectations cool.
Growth: Weak (Score: 19.06) - The market is not scoring Starbucks as a high-growth name right now, raising the bar for execution.

The Verdict: Starbucks's Benzinga Edge signal reveals a momentum-led setup with a premium valuation profile. For longer-term investors, that often means the trend can keep working, but entries tend to matter more-pullbacks toward support may offer cleaner risk/reward than chasing near the 52-week high.

Starbucks Shares Edge Higher Thursday Morning

SBUX Stock Price Activity: Starbucks shares were up 1.61% at $107.66 at the time of publication on Thursday, according to Benzinga Pro data.

Analysts Say Applied Materials Is Built For The AI Chip Supercycle

Benzinga News — Thu, 14 May 2026 10:13:11 -0400

Applied Materials Inc. (AMAT ) trended this week after multiple Wall Street firms raised their price forecasts, citing accelerating AI-driven semiconductor spending, rising demand for advanced memory chips, and expanding investment in next-generation chip manufacturing facilities. Lynx Equity Sees Strong Multi-Year Growth

Lynx Equity raised its price forecast on Applied Materials to $540 from $440, as the firm shifted its valuation focus to 2028 earnings expectations rather than 2027 estimates.

The firm expects NAND memory to drive a new wave of semiconductor fabrication investments in 2028, while Terafab could spark another cycle of advanced logic chip factory spending.

Lynx projected Applied Materials' semiconductor systems revenue to grow 35% in 2027, with total revenue increasing 30%, compared with consensus expectations near 20%. The firm also forecast 2028 revenue growth of 15% versus Wall Street estimates around 10%.

Citi Highlights AI Infrastructure Spending Boom

Citi analyst Atif Malik raised his Applied Materials price forecast to $520 from $420 after increasing forecasts for wafer fabrication equipment spending through 2027.

Malik linked rising hyperscale data center capital spending directly to stronger demand for semiconductor manufacturing equipment tied to AI infrastructure growth.

The analyst outlined a bullish scenario where wafer fab equipment spending reaches $145 billion in 2026 and $190 billion in 2027.

Malik also increased his 2027 silicon revenue growth estimate to 31% year over year and lifted his 2027 earnings-per-share forecast by 12% to $15.72.

RBC Sees AI And Memory Demand Driving Upside

RBC Capital raised its Applied Materials forecast price to $500 from $430 while maintaining an Outperform rating.

The firm expects strong quarterly results driven by DRAM and high-bandwidth memory demand, while also anticipating Applied Materials could deliver another beat-and-raise quarter similar to recent updates from peers Lam Research Corp. (LRCX ) and Tokyo Electron Ltd. (TOELY ).

RBC said Applied Materials remains well-positioned due to its strong exposure to DRAM, HBM, and advanced logic manufacturing.

Technical Setup Still Favors Bulls

The bigger-picture trend is still pointed up: AMAT is trading 8.6% above its 20-day SMA ($406.88) and 58.6% above its 200-day SMA ($278.71), which is typical of a strong momentum name that's been in a sustained uptrend. The 20-day SMA remains above the 50-day SMA, and the 50-day SMA is above the 200-day SMA (a golden cross that occurred in July 2025), keeping the longer-term trend structure bullish.

Momentum also looks constructive through MACD, which is above its signal line, and the histogram is positive, suggesting downside pressure is easing relative to the prior downswing, even if the stock chops around near highs. In plain English, when MACD is above the signal line, it often means buyers are regaining control of the "push" behind the trend.

From a levels perspective, the chart is still defined by "extended but intact" conditions, where pullbacks are judged by whether they hold above key trend gauges. A deeper retracement would put more focus on the mid-term trend area around the 50-day SMA ($377.35) and 50-day EMA ($383.59).

Key Support: $377.00 - a nearby level where buyers previously stepped in, aligning closely with the 50-day moving average zone

Analyst Outlook

Looking further out, the next major catalyst for the stock arrives with the August 13, 2026 (estimated) earnings report.

EPS Estimate: $2.91 (Up from $2.48 YoY)
Revenue Estimate: $8.17 Billion (Up from $7.30 Billion YoY)
Valuation: P/E of 44.8x (Indicates premium valuation relative to peers)

Analyst Consensus & Recent Actions: The stock has a Buy rating and an average price forecast of $444.30. Recent analyst moves include:

Citigroup: Buy (Raises Forecast to $520.00) (May 12)
Cantor Fitzgerald: Overweight (Raises Forecast to $550.00) (May 11)
HSBC: Initiated with Buy (Forecast $517.00) (May 8)

AMAT Price Action: Applied Materials shares were up 0.95% at $440.74 at the time of publication on Thursday. The stock is trading near its 52-week high of $448.45, according to Benzinga Pro data.

Alibaba Is Morphing Into A Microsoft‑Amazon‑Nvidia Mashup As China's AI Wave Accelerates

Benzinga News — Thu, 14 May 2026 10:12:53 -0400

Alibaba Group Holding Limited (BABA ) is starting to sound less like an e-commerce company and more like an AI infrastructure hyperscaler trying to combine the roles of Microsoft Corp (MSFT ), Amazon.com, Inc. (AMZN ) and Nvidia Corp (NVDA ) under one roof. During its earnings call, Alibaba executives repeatedly described a business rapidly expanding across AI models, cloud infrastructure, chips, enterprise software and AI agents - all while demand for compute appears to be exploding across China.

Alibaba's Full-Stack AI Push

"Our full stack capabilities span models, cloud infrastructure and applications with established leadership in every layer," Alibaba CFO Toby Xu said.

That transformation is already beginning to show up in the numbers. Alibaba said Cloud Intelligence Group's external revenue growth accelerated to 40%, while AI-related product revenue has now posted triple-digit growth for 11 consecutive quarters.

The company added that AI-related product revenue now accounts for 30% of external cloud revenue and could surpass 50% within about a year.

The strategy increasingly mirrors a blend of Microsoft Corp -style AI applications, Amazon.com, Inc.-like cloud infrastructure and Nvidia Corp-esque compute positioning.

Alibaba's Nvidia-Like AI Scarcity Moment

Perhaps the most striking comments came around compute demand.

"There isn't a single card on our servers that is idle," Alibaba CEO Eddie Wu said while discussing AI infrastructure demand.

He added that Alibaba's "ability to supply this demand is not able to keep up with all the growth in demand," suggesting China's AI boom may already be running into infrastructure bottlenecks.

Alibaba also revealed that the cost of deploying AI servers has surged.

"The cost for us to deploy one new server this year is double what that same server would have cost a year ago," Wu said.

That combination of soaring demand, infrastructure scarcity and pricing power increasingly resembles the dynamic that helped fuel Nvidia's explosive rise during the AI boom.

Cloud, Chips And AI Agents

Alibaba is also moving deeper into AI hardware and inference infrastructure.

"T Head's proprietary GPU chips have achieved scaled mass production," Wu said, adding that more than 60% of compute capacity from those chips is already serving external customers.

The company described itself as "the only AI Cloud provider in China capable of delivering self developed AI chips at scale."

At the same time, Alibaba is aggressively expanding AI applications and agents. The company said its AI assistant ecosystem now spans Taobao, Alipay, Amap and Fliggy, while AI coding and agentic workloads are becoming major growth drivers.

Alibaba executives said the company is now seeing a major shift from conversational chatbots toward autonomous AI agents - a transition they believe could dramatically increase compute demand.

Looking ahead, Wu said China may ultimately require "10 times the amount of data center infrastructure compared to what we had in 2022."

IEA Warns Global Oil Inventories Are Falling At 'Record Pace' Amid Strait Of Hormuz Crisis

Benzinga News — Thu, 14 May 2026 10:12:32 -0400

Global oil markets have been hit with fresh concerns about falling inventories amid the supply losses due to the ongoing closure of the Strait of Hormuz, which has removed more than 14 million barrels per day of crude output from global supply.

Declining Inventories

Global inventories declined by another 117 million barrels in April after falling 129 million barrels in March, according to the May 2026 Oil Market Report by the International Energy Agency (IEA).

The agency said that "More than ten weeks after the war in the Middle East began, mounting supply losses from the Strait of Hormuz are depleting global oil inventories at a record pace." Total supply losses from Gulf producers topped 1 billion barrels, with more than 14 million b/d of crude output offline. IEA calls it "an unprecedented supply shock."

Disruptions linked to the Strait of Hormuz had affected oil output from Gulf countries by 14.4 million b/d below pre-war levels, offsetting higher production and exports from the Atlantic Basin.

Demand/Supply Projections

The IEA stated that oil demand is set to outpace supply by 1.8 million b/d this year.

Global oil demand is expected to decline by 420,000 barrels per day (b/d) in 2026, to 104 million barrels per day. On the other hand, global oil supply would drop by an average of 3.9 million b/d to 102.2 million b/d, assuming that the shipments from the Strait of Hormuz will gradually return from June.

Baker Hughes CFO Ahmed Moghal highlighted that the Hormuz may remain closed until the second half of 2026. This uncertainty has already led to the loss of about 10% of global oil supply and disrupted around 20% of global LNG output, marking it as the most severe oil supply disruption recorded to date.

Aramco CEO Amin Nasser warned that global energy markets could face a multi-year disruption if oil shipments through the Strait of Hormuz remain blocked.

Notably, oil output declined in April by 1.8 million b/d to 95.1 million b/d, extending total losses since February to 12.8 million barrels a day.

Demand To Take A Hit In Q2

The agency said the sharpest hit to consumption is concentrated in the second quarter, when demand is forecast to be 2.45 million barrels a day lower than a year earlier. It attributed 930,000 barrels a day of that decline to OECD economies and about 1.5 million barrels a day to non-OECD countries.

Analysts Say Agentic AI Will Power One-Third Of Smartphones Within Two Years

Benzinga News — Thu, 14 May 2026 10:12:12 -0400

Counterpoint Research said the smartphone industry is rapidly shifting toward Agentic AI, with chipmakers and device makers racing to build smarter, context-aware AI experiences directly into smartphones.

Qualcomm And MediaTek Intensify AI Smartphone Competition

Counterpoint Research noted on Thursday that Agentic AI-capable smartphone chip shipments reached 4% penetration by the end of 2025, with adoption largely limited to premium Android devices.

Principal Analyst Soumen Mandal said Qualcomm Inc. (QCOM ) gained an early scale advantage through partnerships with Samsung Electronics Co. Ltd. (SSNLF ) and Chinese smartphone makers.

At the same time, its AI software ecosystem and developer collaborations accelerated adoption in flagship devices.

At the same time, Mandal said MediaTek became the first chipmaker to commercialize Agentic AI capabilities through its Dimensity 9400 series, ahead of Qualcomm's Snapdragon 8 Elite Gen 5 launch.

He added that MediaTek is aggressively expanding into premium smartphones and pushing advanced AI features into broader price categories, increasing competitive pressure on Qualcomm.

Counterpoint also projected Agentic AI smartphone chip shipments to grow at a 281% compound annual growth rate between 2025 and 2027, with penetration expected to rise to 32% by 2027.

Apple, Samsung And Google Pursue Different AI Strategies

Counterpoint said Apple Inc. (AAPL ) continues focusing on on-device AI processing through its custom silicon, Neural Engine, unified memory architecture, and tightly integrated ecosystem.

Researchers said Apple's eventual entry into dedicated Agentic AI smartphones could significantly reshape the market.

The firm added that Samsung is strengthening its position through investments in memory-focused AI technologies and partnerships with Advanced Micro Devices, Inc. (AMD ) and Perplexity tied to the Galaxy S26 lineup.

Meanwhile, Counterpoint said Alphabet Inc. (GOOGL ) (GOOG ) Google is pursuing a hybrid edge-to-cloud AI strategy.

The company's shift to Taiwan Semiconductor Manufacturing Company Ltd.'s (TSM ) N3P process, adoption of Imagination Technologies GPU architecture, and use of TPU expertise from its data-center operations reflect Google's long-term AI ambitions.

Analysts Expect AI Features To Expand Beyond Premium Phones

Research Vice President Peter Richardson said one in three smartphones sold in 2027 could support Agentic AI capabilities, driven by both premium devices above $600 and mid-high-tier phones priced between $250 and $600.

Richardson added that OpenAI could also enter the smartphone market with AI-centric devices focused more on AI agents than traditional app-based experiences.

However, supply-chain scale, memory availability, pricing, and user experience will determine commercial success.

Senior Analyst Shivani Parashar said more than 80% of premium smartphones could support Agentic AI by 2027, but the larger opportunity lies in expanding these capabilities into mid-tier devices.

She said MediaTek currently holds an early advantage in that transition through its Agentic AI-ready Dimensity 8400, 8450, and 8500 chipsets.

Mortgage Rates Hit Five-Week Highs—But Homebuyers Are Returning, Boosting Home Depot, Lowe's And Other Builders

Benzinga News — Thu, 14 May 2026 10:11:56 -0400

Despite mortgage rates climbing to five-week highs, sidelined homebuyers are returning to the market in a sudden surge, creating a lucrative plot twist for major homebuilders like D.R. Horton Inc. (DHI ) and Lennar Corp. (LEN ).

Buyers Accept The 'New Normal'

The 30-year fixed-rate mortgage currently averages 6.37%, according to the latest Freddie Mac Primary Mortgage Market Survey, up from 6.30% last week. While the Mortgage Bankers Association (MBA), as reported a brief Wednesday spike to 6.46%, the overarching data reveal a market where buyers are finally tired of waiting.

Purchase mortgage applications jumped 4% over the past week and are currently tracking 7% higher year-over-year.

Industry leaders are observing a clear shift in consumer psychology. Potential homebuyers "shrugged off" the current economic and mortgage rate uncertainties and returned to the market, Joel Kan, an MBA economist, told CNBC.

National Association of Realtors chief economist Lawrence Yun confirmed the turning tide, noting agents are reporting a "surge in buyer demand in just the last few weeks."

New Construction Captures Demand

This renewed buyer enthusiasm is colliding directly with a severely constrained supply of existing homes. Homeowners locked into historically low interest rates are overwhelmingly refusing to sell and take on a new 6.37% mortgage.

With existing inventory essentially frozen, buyers are pivoting to new construction. Freddie Mac officially corroborated this shift, noting "slightly better conditions for buyers with a boost in new-home sales" and "higher inventory" entering the market.

This dynamic serves as a massive tailwind for builders like D.R. Horton and Lennar, who are actively filling the supply vacuum left by existing homeowners.

Remodeling Surges As Refinances Sink

The rate lock-in effect is also radically redirecting consumer spending. A pervasive stay and rehab mentality is boosting home improvement retailers like Home Depot Inc. (HD ) and Lowe's Companies Inc. (LOW ), as trapped homeowners invest in renovations instead of relocating.

Conversely, the stagnant existing-home market continues to punish the refinance sector, with applications dropping another 1%.

While the sudden jump in purchase applications offers originators a much-needed lifeline, mortgage servicers remain highly reliant on managing their existing, low-rate loan portfolios to weather the current cycle.

Here's a list of some real estate and REIT-linked ETFs for investors to consider:

ETFsYTD Performance/ 6-Month Performance/ One Year Performance

SPDR S&P Homebuilders ETF (XHB )-3.87%/ -4.94%/ -2.20%

Vanguard Real Estate Index Fund ETF (VNQ )7.48%/ 5.94%/ 8.40%

Schwab US REIT ETF (SCHH )12.11%/ 10.79%/ 11.58%

Real Estate Select Sector SPDR Fund (XLRE )8.57%/ 6.86%/ 7.59%

iShares US Real Estate ETF (IYR )7.71%/ 6.45%/ 9.10%

iShares Core US REIT ETF (USRT )12.94%/ 11.14%/ 14.74%

DFA Dimensional Global Real Estate ETF (DFGR )8.89%/ 6.83%/ 9.73%

SPDR Dow Jones REIT ETF (RWR )11.30%/ 10.15%/ 13.88%

SanDisk And Micron Had Their Run – This New 'Photonics' ETF Has 15 Triple-Digit Gainers Inside

Benzinga News — Wed, 13 May 2026 15:20:44 -0400

Memory was the first major AI bottleneck, as seen in explosive moves in Micron Technology Inc. (MU ) and SanDisk Corp. (SNDK ).

Photonics could be the next one, and a new exchange-traded fund just opened for business to play it.

The Corgi Lithography & Semiconductor Photonics ETF (EUV ) launched on May 6 as the first U.S.-listed fund built around the photonics theme.

It holds $18.4 million in assets so far, a fraction of the nearly $7 billion that flooded into the Roundhill Memory ETF (DRAM ) in roughly a month.

But the lukewarm reception is hiding a more interesting story.

Fifteen of EUV's forty holdings are already up more than 100% year-to-date. Three are up more than 300%. One is up more than 650%.

Why Photonics, Why Now?

Photonics is the use of light to do work that electrons used to do.

Think of it as the plumbing for AI. When hyperscalers wire up hundreds of thousands of GPUs into a single training cluster, the bottleneck is no longer the chip. It is the cable between the chips.

That is why optical transceivers, photonic integrated circuits, co-packaged optics and pluggable optics have become the most crowded supply-constrained corner of the AI buildout.

Nvidia has poured billions into photonics suppliers to lock down capacity. Orders extend 18 months out at some firms, well above historical norms of 12 months.

According to estimates made by Corgi Funds, the issuer behind EUV, the silicon photonics market is projected to grow from $2.8 billion in 2025 to $10.7 billion by 2032 at a 21% compound annual growth rate, driven by AI data center demand.

15 Names Inside EUV ETF Are Already Up Triple Digits In 2026

Inside EUV's basket sits a roster of stocks that have already gone vertical.

The top performers year-to-date among EUV's components include AXT Inc. (AXTI ), up 651.7%, Applied Optoelectronics Inc. (AAOI ), up 440.1%, and Lightwave Logic Inc. (LWLG ), up 391.7%.

The list continues with:

Aehr Test Systems Inc. (AEHR ) at 379.1%
Ultra Clean Holdings Inc. (UCTT ) at 227.6%,
Viavi Solutions Inc. (VIAV ) at 199.7%
Lumentum Holdings Inc. (LITE ) at 169.2%
Ciena Corp. (CIEN ) at 146.8%
FormFactor Inc. (FORM ) at 136.7%
Corning Inc. (GLW ) at 126.8%
nLIGHT Inc. (LASR ) at 123.4%
POET Technologies Inc. (POET ) at 116.9%
Veeco Instruments Inc. (VECO ) at 115.1%
MACOM Technology Solutions Holdings Inc. (MTSI ) at 111.8%
GlobalFoundries Inc. (GFS ) at 106.6%.

Fifteen names, all north of 100% in a little over four months.

The Bottleneck Logic

So why is the light layer outrunning the chip layer?

There are at least three reasons.

First, demand is structural. Hyperscaler capital expenditure is on track to grow 67% year-over-year in 2026, according to Stifel analyst Ruben Roy.

Every dollar of GPU capex eventually requires interconnect, and most of it now requires optical interconnect.

Second, supply is constrained. Indium phosphide lasers, the building block of high-speed transceivers, sit in a vertically integrated supply chain dominated by a handful of names.

Coherent Corp. (COHR ) and Lumentum are the two firms with the in-house laser chip capacity needed to scale into 800G and 1.6T transceivers, the bandwidth tier hyperscalers are now ordering at scale.

Third, optical replaces copper at a fixed pace. Once a hyperscaler commits a cluster to optical interconnects, the parts ship for the life of that cluster. The revenue is recurring in a way GPUs are not.

The combination is driving year-over-year revenue growth that some companies have not posted since the dot-com fiber boom.

Lumentum just reported fiscal third-quarter revenue of $808.4 million, up 90.1% year-over-year, and guided fourth-quarter revenue to a range of $960 million to $1.01 billion. The midpoint would represent year-over-year growth of nearly 100%.

Why EUV Is Not A 'Pure' Photonics Play

ETF.com senior ETF analyst Sumit Roy has questioned whether EUV is really a photonics ETF at all.

Roy indicated that EUV's top holdings tilt toward the semicap and foundry story rather than the data center interconnect bottleneck driving the photonics rally.

Together those names sit ahead of the photonics pure-plays in the ranking.

Of the top five, only Corning has Optical Communications as the clear AI photonics driver. The rest are general semicap names benefiting from AI but not from the photonics bottleneck specifically.

Taiwan Semiconductor benefits from leading-edge node demand. ASML benefits from foundry capex. Both are using light. Neither is the AI photonics pure-play that drove Lumentum, Coherent and Applied Optoelectronics to multi-bagger status this year.

"That's a different cycle from the photonics bottleneck driving Lumentum, Coherent, and Applied Optoelectronics-stocks that sit further down the holdings list," Roy said.

Three other photonics ETFs have been recently filed with stricter pure-play definitions, including the KraneShares Optical AI Infrastructure ETF, which would require at least 50% of revenue or gross profit from optical infrastructure across transceivers, photonic integrated circuits, fiber assemblies and optical networking systems.

None of the chip and semicap names that dominate EUV's holdings would clear that test.

McDonald's Stock Hits 52-Week Lows: High Gas Prices Could Make Things Worse

Benzinga News — Wed, 13 May 2026 15:20:36 -0400

McDonald's Inc (MCD ) stock recently hit new 52-week lows, despite beating analyst estimates for revenue and earnings per share in the recently reported first quarter. The bad news for investors is there could be more pain ahead due to the increasing pain at the pump. Gas Prices Hit Fast Food Visits

Rising gas prices could have consumers changing their summer vacation plans. On a shorter time scale, the rising cost of filling up at the gas pump could also lead consumers to change how often they eat out, including fast-food visits.

A new report from Placer.ai shows visits to quick-service restaurants were down in the months of March and April on a year-over-year basis. Here are the year-over-year visits data for 2026 for quick-service restaurants:

January: -0.9%
February: +3.0%
March: -1.5%
April: -1.8%

Also being hit are full-service restaurants, which saw a bigger decline of 4.8% in March and 1.6% decline in April.

In contrast, fast casual restaurants posted gains of 1.3% in March and 1.9% in April.

While this is only two months, it was a period that saw gas prices spike nationwide and could be indicative of trends moving forward.

These trends would hurt companies like McDonald's, Wendy's (WEN ) and Restaurant Brands International (QSR ), while fast casual companies like Chipotle Mexican Grill (CMG ) could see a lift in visitors.

McDonald's Focuses on Value

The decline in visits for the quick service restaurant segment could be an overall indication of the sector and not specific to McDonald's.

McDonald's has renewed its focus on value for its consumers, including launching new $3 menu options.

McDonald's CEO Chris Kempczinski highlighted the company's value offerings during the recent earnings report.

"Our value leadership, breakthrough marketing, and menu innovation continue to serve up what customers want," Kempczinski said.

MCD Stock Price Action

McDonald's stock traded at $275.70 on Wednesday versus a 52-week trading range of $271.98 to $341.75. McDonald's stock is down 9.1% year-to-date in 2026, with new 52-week highs hit earlier this week.

'Tip Of The Iceberg': Culper Research Targets Nvidia's Alleged China Problem

Benzinga News — Wed, 13 May 2026 15:20:30 -0400

Nvidia Corp (NVDA ) is the subject of a short report released Wednesday by Culper Research, which alleges the semiconductor giant faces a significant and undisclosed "China problem." The report claims that while Nvidia has publicly stated its China compute business dropped to zero following April 2025 trade restrictions, more than 20% of its FY 2026 compute revenues were actually driven by Chinese demand through illegal diversion and Southeast Asian intermediaries.

Benzinga has reached out to Nvidia for comment on the Culper report.

Megaspeed International Linked to Secret Alibaba Financing

The research identifies Singapore-based Megaspeed International as Nvidia's largest Southeast Asian buyer, alleging the firm is secretly financed by Alibaba Group Holding (BABA ) via a series of shell companies. According to Culper, Megaspeed's balance sheet exploded from just $33 million to $3 billion in a single year, a move fueled almost entirely by $2.9 billion in "refundable deposits" from unnamed sources.

The report further alleges that CEO Jensen Huang maintains an "uncomfortably close" relationship with Megaspeed's leadership and is frequently accompanied by Alibaba representatives during his visits to data centers.

DOJ Indictments and Diversion Risks Threaten Forward Revenue

Furthermore, Culper connects these operations to the March 2026 DOJ indictment involving Super Micro Computer Inc (SMCI ) and OBON Corp, characterizing Megaspeed as the "tip of the iceberg" in a complex server-smuggling network. The firm also identifies partner Aivres Systems, formerly the blacklisted Inspur Systems, as a de facto China-dedicated supply channel.

Culper warns that as Beijing pivots toward domestic alternatives and clamps down on foreign chips, Nvidia faces a massive "air gap" in its forward revenue estimates.

NVDA Shares Edge Higher Wednesday Afternoon

NVDA Price Action: Nvidia shares were up 2.66% at $226.65 at the time of publication on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

Eli Lilly Says Newly Approved Foundayo, Lower-Dose Zepbound Help Sustain Weight Loss

Benzinga News — Wed, 13 May 2026 15:19:47 -0400

Eli Lilly and Co. (LLY ) on Wednesday released detailed findings from two late-stage obesity studies showing patients were able to maintain significant weight loss after switching from higher-dose injectable incretin therapies to either Foundayo or lower-dose Zepbound.The company presented data from the SURMOUNT-MAINTAIN and ATTAIN-MAINTAIN studies at the 33rd European Congress on Obesity. The findings were also published in The Lancet and Nature Medicine, respectively.

SURMOUNT-MAINTAIN Meets Primary Goals

In the SURMOUNT-MAINTAIN trial, both maintenance-dose Zepbound and a reduced 5 mg dose achieved the study's primary and key secondary endpoints.

The study evaluated whether continuing Zepbound after 60 weeks of initial treatment was superior to placebo in maintaining body weight reduction through week 112.

Patients who remained on the maximum tolerated dose preserved all previously achieved weight loss. Those switched to the 5 mg dose maintained most of their reduction, regaining an average of 5.6 kilograms.

Foundayo Also Shows Positive Results

The ATTAIN-MAINTAIN study found that patients switching to Foundayo also maintained most of their prior weight reduction after reaching a weight plateau in earlier SURMOUNT-5 treatment.

By week 52, patients transitioning from Novo Nordisk A/S' (NVO ) Wegovy maximum tolerated doses to Foundayo regained an average of 0.9 kilograms, while those switching from Zepbound maximum tolerated doses regained around 5 kilograms.

Zepbound and Mounjaro Revenue Continues To Grow

Mounjaro's revenue increased 125% to $8.7 billion. U.S. revenue was $4.2 billion, an increase of 59%, reflecting strong demand, partially offset by lower realized prices.

U.S. Zepbound revenue increased 79% to $4.1 billion, primarily driven by strong demand, partially offset by lower realized prices, including previously announced reductions in cash pay prices.

In April, Eli Lilly reported positive topline results from its Phase 3 ACHIEVE-4 trial of its oral drug Foundayo (orforglipron) for weight loss.

The study showed that orforglipron met the primary goal of cardiovascular safety compared with insulin glargine in adults with type 2 diabetes and obesity or overweight at elevated cardiovascular risk.

The study also indicated stronger reductions in blood sugar and body weight, positioning the therapy as a potential alternative to insulin-based treatment.

LLY Price Action: Eli Lilly shares were up 1.52% at $1,004.90 at the time of publication on Wednesday, according to Benzinga Pro.

Over the past month, Eli Lilly has gained about 6.7% versus a 9% rise in the S&P 500 and is down roughly 7% year-to-date compared to the index's 7.7% gain.

Anthropic To Brief Homeland Security On 'Mythos' AI Cyber Model

Benzinga News — Wed, 13 May 2026 15:19:39 -0400

Anthropic will meet behind closed doors with the House Committee on Homeland Security today to walk lawmakers through Mythos, the company's cybersecurity-focused AI system. The session lands as Washington's anxiety about artificial intelligence safety and national security keeps climbing.

Three people familiar with the plans reported that the discussion is expected to center on Mythos' "capabilities, national security implications, and policy considerations."

The briefing is scheduled as a private meeting with the panel. Anthropic representatives expected to lead the presentation include Logan Graham, head of Anthropic's Frontier Red team, and Josh Tilstra, who works in the company's national security programs and policy.

Mythos has not been released to the public, but Anthropic has described it as its most advanced model and says it can surface long-standing software weaknesses.

The Pentagon's tech chief, Emil Michael, highlighted the potential security risks of Anthropic's Claude models. He also noted the advanced cyber capabilities of Mythos, another AI model, which could potentially identify and rectify cyber vulnerabilities.

Officials have argued that earlier access could help surface risks that span cyber intrusions and possible military misuse. The deleted page had described the testing as a way to spot those problems before models reach the public.

The meeting is at least the second such engagement between the committee and Anthropic following a limited rollout of Mythos. Last month, Anthropic and OpenAI also held private briefings for the committee focused on AI models and their implications for cybersecurity.

GameStop CEO Ryan Cohen Wants eBay, Says He'll Do 'Whatever' It Takes

Benzinga News — Wed, 13 May 2026 15:19:30 -0400

GameStop Corp. (GME ) CEO Ryan Cohen is making his clearest case yet for why he wants eBay Inc. (EBAY ), framing the proposed deal as a chance to transform one of the largest e-commerce platforms in the U.S. under an owner-operator model.Cohen joined Anthony Pompliano on the "From the Desk of Anthony Pompliano" podcast and explained why he wants to acquire eBay.

"I Want to Own eBay"

GameStop has proposed acquiring eBay for $125 per share in a half-cash, half-stock deal, with Cohen saying GameStop has about $9 billion in cash and a $20 billion financing commitment from bankers.

He framed the bid as a shareholder-friendly combination that would let eBay investors take part cash while rolling the rest into a combined company led by him.

"It's within my circle of competence," Cohen said. "It's a business that I understand. It's the second-largest e-commerce asset in the United States."

Cohen argued eBay is "under earning" and said he could "make a really big impact in terms of the profitability in the short term, but more important in the long term."

"It's something where I want to run eBay. I want to own eBay. I want eBay to be a much, much larger business," Cohen said.

He said his Chewy experience is central to the thesis.

"E-commerce is in my wheelhouse and there's no asset in my view that has as much potential as eBay," Cohen said.

Cohen is Undeterred

eBay rejected GameStop's proposal, calling the offer "not credible or attractive."

Cohen argued the response was expected, saying the deal is "not attractive to the board and the management team" because they would be replaced, but "it's very attractive to shareholders."

He contrasted his approach with eBay's current leadership, saying, "I don't get paid unless I build a much larger business and I want to turn eBay into something much larger."

He also took aim at eBay's expense structure.

"I mean, it's a business that's spending over $5.5 billion on $11 billion in revenue to run a business that essentially has no inventory and is very asset light," Cohen said, adding that he is "committed to $2 billion in cost cuts at eBay."

He Likes the Business

Cohen told Pompliano that he is prepared to keep pressing the matter directly with shareholders.

"We're going to do whatever we obviously need to do in order to bring this proposal in front of the true owners of the business," he said.

Cohen summed up his eBay motivations simply: "I want the business. I want the business."

GME Price Action

GME Price Action: GameStop stock was down 0.22% at $22.34 at the time of publication on Wednesday, according to Benzinga Pro.

Over the past month, GME has declined about 4.53% versus a 9.5% rise in the S&P 500 and is up roughly 10% year-to-date compared to the index's 8.2% gain.

Blackstone Builds On $8 Billion Core Private Equity Franchise With New Long-Hold Fund

Benzinga News — Wed, 13 May 2026 15:19:14 -0400

Blackstone (BX ) is in the process of raising money for its third private equity fund. The new fund, which will hold assets for longer than usual, will seek to invest in 8 to 10 companies, with cheque sizes totaling $800 million to $1 billion, Bloomberg reported.

Sources familiar with the topic told Bloomberg that the firm has told investors that it will make a more formal fundraising pitch for its core private equity fund sometime this year.

The firm's Core Private Equity I saw an internal rate of return of 15%, while the second fund saw a net IRR of 16%, according to Blackstone's Q1 earnings report.

In 2020, Blackstone closed BECP II at its hard cap of $8 billion, 70% larger than its predecessor fund at the time.

"Initial discussions with investors for establishing Blackstone's core private equity business began in 2014, which led to the first close of the first vintage of this strategy in 2016. This platform is designed to hold investments for longer periods than traditional private equity and targets investing in high-quality, market-leading companies," the firm wrote in a press release at the time.

The core private equity business holds funds for approximately 20 years, instead of the usual 10, Bloomberg noted. Blackstone does not currently have a fundraising target for its third long-hold fund.

Prior investments included property damage restoration services company Servpro, as well as security technology company Chamberlain Group.

The Clarity Act Is One Vote Away: Here's What 50 Million Crypto Holders Get If It Passes

Benzinga News — Wed, 13 May 2026 15:19:07 -0400

The Senate Banking Committee votes Thursday on the CLARITY Act, comprehensive crypto legislation that would give 50 million U.S. crypto holders clear regulatory rules after years of uncertainty under the SEC and CFTC.

What The Bill Does

The CLARITY Act establishes clear rules separating which digital assets are securities and which are commodities, ending the jurisdictional confusion between the SEC and CFTC that has plagued the industry.

The bill requires digital asset exchanges, brokers, and dealers to comply with Bank Secrecy Act regulations, including anti-money laundering programs, suspicious activity reporting, and sanctions compliance.

The legislation protects software developers who publish code without controlling customer funds and preserves Americans' ability to self-custody their digital assets.

It also requires registration of Bitcoin ATMs with customer warnings, receipts, holding periods, and withdrawal limits.

Democrats Want Trump Conflict-Of-Interest Provision

Democratic Senator Chris Van Hollen (D-MD) wants to ban the president and senior government officials from owning, promoting, or affiliating with digital assets businesses.

Meanwhile, Senator Kirsten Gillibrand (D-NY) said the CLARITY Act will not pass the Senate without a conflict-of-interest provision.

Industry Backs The Bill

White House crypto director David Sacks called Thursday's markup "a monumental step in making the U.S. the Crypto Capital of the World."

Senate Vote Needs 60 To Clear

The Banking Committee will vote to advance the bill Thursday. Once approved, the bill merges with parallel legislation that already cleared the Senate Agriculture Committee.

The bill needs 60 votes to clear the Senate, requiring Democratic support, before heading to the House for another vote.

Senator Bill Hagerty (R-TN) introduced an amendment to ban central bank digital currencies issued by the Federal Reserve. Senator Jack Reed (D-RI) wants to restrict stablecoin yields further and scrap protections for software developers.

Affirm Unveils Aggressive Expansion Blueprint

Benzinga News — Wed, 13 May 2026 15:18:24 -0400

Affirm Holdings, Inc. (AFRM ) shares are trading lower on Wednesday. Bank of America Securities (BofA) hosted the company's Investor Day in New York, where management outlined long-term growth opportunities tied to new products, international expansion, and broader adoption of its consumer finance platform.

GMV Growth Targets And Revenue Outlook

Affirm reiterated its target of reaching $100 billion in annual gross merchandise volume, or GMV, over the medium term, which BofA models around fiscal 2029 based on current growth assumptions. The outlook implies annual growth of more than 25%.

BofA said the projected expansion is expected to be driven by contributions of more than 10% each from merchant point-of-sale and direct-to-consumer channels, along with 1% to 5% from international markets.

The analyst also highlighted additional upside potential from the company's Affirm Edge offering and agentic commerce initiatives. The forecast is modestly above Wall Street expectations of $96.4 billion in fiscal 2029 GMV.

The company now expects its RLTC loss rate to settle in the range of 3.75% to 4.0% as a percentage of GMV, tighter than its prior 3% to 4% framework and slightly above previous investor expectations.

Affirm projects revenue to represent 7.5% to 8.5% of GMV, alongside GAAP operating margins of 20% to 25% and adjusted operating margins of 30% to 35%.

Combined, the outlook supports a path toward roughly $3 to $4 in earnings per share, broadly in line with consensus estimates, although stronger margins are expected to be offset by a higher assumed tax rate in the mid-to-high 20% range.

Affirm Card And Product Expansion Initiatives

Management said growth continues to be supported by strategic initiatives including the Affirm Card, digital wallets, agentic commerce and the recently launched Affirm Edge product.

The Affirm Card remains a major growth driver, with management estimating the product could eventually scale to $150 billion in GMV based on 20 million users spending an average of $7,500 annually.

International expansion also remains a key opportunity, with management targeting a global market exceeding $5 trillion outside the U.S., Canada and China.

The company's partnership with Shopify Inc. (SHOP ) continues to support that strategy, with approximately $20 billion in GMV generated to date. Further expansion is planned across Australia, the Netherlands, Germany and France.

Following the event, BofA Securities maintained its Buy rating on Affirm and raised its price forecast from $82 to $88.

Analyst Consensus & Recent Actions

The stock carries a Buy rating with an average price forecast of $83.47. Recent analyst moves include:

Needham: Buy (Maintains forecast to $90.00) (May 13)
B of A Securities: Buy (Raises forecast to $88.00) (May 11)
JP Morgan: Overweight (Raises forecast to $80.00) (May 8)

Affirm Price Action

AFRM Price Action: Affirm Holdings shares were down 3.55% at $63.11 at the time of publication on Wednesday, according to Benzinga Pro data.

Ford Stock Soars On Energy Business Optimism

Benzinga News — Wed, 13 May 2026 15:18:06 -0400

Ford Motor Co (F ) shares are skyrocketing Wednesday. Morgan Stanley released new research arguing that the company's energy storage ambitions are far more valuable than the market currently recognizes, putting the stock on pace for its best session since March 2020. Here's what you should know.

What's Pushing Ford Higher?

Morgan Stanley analyst Andrew Percoco reiterated an Equal‑weight rating and kept a $14 price target on Ford in a new note to clients on Wednesday. The analyst also suggested that Ford's Energy division could eventually be worth about $10 billion, which sent shares surging Wednesday morning with momentum continuing into the afternoon session.

Percoco highlighted Ford's partnership with CATL as a major advantage for the company's Energy Storage business. He believes this relationship positions Ford as a key supplier of compliant energy storage systems for utilities and data centers in the United States.

The analyst also sees a strong chance that Ford will secure supply agreements with large commercial customers, including hyperscalers, in the coming months.

Why The CATL Licensing Deal Matters

Ford entered the energy storage market late last year with a $2 billion investment, a move that initially drew skepticism because it was announced alongside a roughly $20 billion write‑down in the EV division. Morgan Stanley argues that the market overlooked the detail that Ford is licensing technology from CATL, the global leader in energy storage manufacturing.

By using CATL's top‑tier LFP technology, Ford becomes one of the few domestic suppliers with a semi‑vertically integrated structure. The analysts noted that this setup gives Ford a strategic advantage in a regulatory environment that is becoming more complex, especially with tariffs and rules tied to foreign entities. The licensing model allows Ford to scale in a high‑growth area while maintaining operational control and staying aligned with regulatory requirements.

Unit Economics And Profitability Outlook

Morgan Stanley modeled the potential economics of Ford's Energy business and estimated that the division could generate roughly a 25% gross margin at scale, helped by the $45 per kWh manufacturing tax credit. This assumes modest pricing pressure through the decade and a cost structure of $215 to $230 COGS per kWh. The analyst expects Ford to maintain strong supply chain positioning due to its CATL relationship.

Based on these assumptions, the firm believes Ford's energy business could turn profitable on an EBIT basis by 2028. That would be a meaningful shift given that the Model e division is expected to post a $4.25 billion EBIT loss in 2026.

Morgan Stanley estimated that Ford Energy could generate $500 million to $600 million of run‑rate EBIT at 20 GWh of production. The analysts see room for even higher capacity depending on customer demand.

Morgan Stanley Sees Expanding Market

Morgan Stanley expects strong growth in energy storage demand over the next five years, driven by three major forces. The first would be that AI inference workloads that create volatile and peak‑heavy power demand. The second is that energy storage is being used to ease traditional power capacity constraints, and the last being rising renewable penetration that requires storage to balance intermittency.

The firm forecasts a 38% CAGR for US energy storage deployments, reaching 279 GWh by 2030. Utility‑scale storage is expected to grow at a 14% CAGR to 110 GWh by 2030, while data centers could support another 169 GWh of annual deployments.

The analysts wrote that the United States has reached an inflection point in power demand. After nearly two decades of flat growth at roughly a 0.4% CAGR, they expect demand to accelerate at about a 2.6% CAGR through 2035 due to data center expansion, onshoring of manufacturing and electrification.

Morgan Stanley estimates that Ford Energy could be worth $10 billion once it reaches 20 GWh of capacity, applying a 17.5x multiple to roughly $588 million of EBIT.

F Shares Sprint Higher Wednesday

F Price Action: Ford shares were up 13.68% at $13.64 at the time of publication on Wednesday, according to Benzinga Pro.

Tariffs, Forex And Middle East Turmoil Bite Birkenstock, Leave Footprint On Margins

Benzinga News — Wed, 13 May 2026 15:17:59 -0400

Birkenstock Holding plc (BIRK ) shares fell on Wednesday after the company reported second-quarter adjusted EPS below estimates and margin pressure tied to unfavorable currency translation, evolving U.S. tariff policies and ongoing instability in the Middle East. Despite the softer profitability, the German shoemaker posted double-digit constant-currency revenue growth across all regions, led by APAC, and reaffirmed its 2026 sales and adjusted EPS guidance.

What Happened?

Birkenstock reported second-quarter adjusted earnings per share of 59 cents, missing the analyst consensus estimate of 70 cents. Quarterly sales of $724.068 million outpaced the Street view of $723.930 million.

Revenue increased 8% on a reported basis and 14% in constant currency.

The company reported double-digit constant-currency revenue growth across all regions, led by APAC with 30% growth, followed by the Americas at 14% and EMEA at 11%. On a reported basis, revenue rose 4% in the Americas, 10% in EMEA and 22% in APAC.

In the quarter, Birkenstock reported a quarterly gross profit margin of 53.9%, down 380 basis points year over year. This was primarily due to unfavorable currency translation (230 basis points), incremental U.S. tariffs (90 basis points) and channel mix (30 basis points).

Adjusted EBITDA margin was 32.1% in the quarter, down 270 basis points from 34.8% in the prior year period.

"In an overall challenging environment, we continue to see strong opportunities," said CEO Oliver Reichert. "Despite the ongoing instability in the Middle East, persistent inflationary pressures, US tariff policy evolving unfavorably for us and continued F/X headwinds, we delivered constant currency revenue growth of over 14%."

Investing In Production Capacity

Birkenstock invested approximately 21 million euros in capital expenditures during the fiscal second quarter of 2026, primarily to add production capacity as well as to expand retail operations globally.

The firm ended the quarter with cash and cash equivalents of 201 million euros and net leverage of 1.7x as of March 31, 2026, compared to 1.5x as of September 30, 2025, due to typical cash seasonality.

Outlook

Birkenstock Holding affirmed 2026 adjusted EPS guidance of $2.22-$2.40, compared with analyst estimates of $2.39.

The company also reaffirmed FY2026 sales guidance of $2.759 billion-$2.808 billion, versus estimates of $2.740 billion.

BIRK Price Action: Birkenstock Holding shares were down 13.74% at $32.73 at the time of publication on Wednesday. The stock is trading at a new 52-week low, according to Benzinga Pro data.

Novo Nordisk Highlights New Wegovy Pill Data

Benzinga News — Wed, 13 May 2026 15:17:34 -0400

Novo Nordisk A/S (NVO ) presented new analyses from its phase 3 OASIS 4 clinical trial at the European Congress on Obesity 2026 in Istanbul, highlighting the long-term weight loss potential and functional benefits of its oral obesity treatment, Wegovy pill. The company said adults treated with oral semaglutide 25 mg achieved clinically meaningful weight loss regardless of whether they experienced rapid early reductions in body weight.

Early Responders Saw Greater Long-Term Weight Loss

According to the new analysis, nearly 29% of participants classified as "early responders" - those who lost at least 10% of body weight by week 16 - recorded average weight loss of 13.2% at that stage of treatment.

By week 64, those early responders achieved an average weight loss of 21.6%.

Participants who did not meet the early-response benchmark still reported average weight loss of 11.5% by the end of the study.

Wegovy Pill Also Improved Physical Function

A separate OASIS 4 analysis showed nearly eight in 10 participants with poor physical function experienced clinically meaningful improvements in function scores while taking the Wegovy pill, compared with 42.9% in the placebo group.

The scores measured physical capabilities, including stamina and range of motion. Novo Nordisk said participants in this subgroup achieved weight loss comparable to the broader treatment population.

Novo Nordisk Compared Wegovy Pill With Orforglipron

Additional analyses presented at ECO2026 suggested that the Wegovy pill produced greater weight loss and lower discontinuation rates due to gastrointestinal side effects than orforglipron.

Novo Nordisk said the ORION indirect treatment comparison found oral semaglutide 25 mg delivered significantly greater average weight loss than orforglipron 36 mg. The company also said patients taking orforglipron had roughly 14 times higher odds of discontinuing treatment due to gastrointestinal side effects.

In the OPTIC patient preference survey, 84% of respondents favored a treatment profile similar to the Wegovy pill over one resembling orforglipron.

Novo Nordisk added that the latest findings support the primary OASIS 4 trial results, which showed an average weight loss of 17% among adults taking the Wegovy pill versus 2.7% among placebo participants.

NVO Price Action: Novo Nordisk shares were down 0.11% at $46.95 at the time of publication on Wednesday, according to Benzinga Pro. Over the past month, NVO has gained about 26.4% versus a 9.1% rise in the S&P 500 and is down roughly 9% year-to-date compared to the index's 7.8% gain.

JD.Com Analyst Raises Estimates On Recovering Profitability, Earnings Inflection

Benzinga News — Wed, 13 May 2026 15:17:14 -0400

Shares of JD.Com Inc (JD ) surged on Wednesday after the company posted strong first-quarter results.

Benchmark analyst Fawne Jiang said the Q1 results and second-quarter outlook point to "a clear earnings inflection point," with profitability growth "firmly back on track."

The JD.Com Analyst: Jiang, reiterated a Buy rating and raised the price target from $38 to $42.

The JD.Com Thesis: Despite a challenging backdrop, the company delivered modestly better-than-expected revenue, margin expansion and a strong profitability performance, Jiang added.

JD.Com generated 5% year-on-year revenue growth, slightly higher than consensus, he added.

While concerns over margin dilution from higher food delivery investment led to a sell-off in the stock in 2025, the company now seems to be "returning to fundamentals," the analyst stated.

JD Retail's margin expanded despite some revenue headwinds, which was driven by mix improvement and operating efficiency, while losses from new initiatives narrowed 30% year-on-year, he added.

Room For Further Earnings Upside

"Core JD Retail is delivering higher-quality growth, led by sustained strength in general merchandise (GM), advertising, and marketplace monetization, driving margin expansion, while food delivery losses are narrowing faster than expected," Jiang wrote.

The company's investments in automation, robotics, and AI-driven logistics are driving the potential to improve operating leverage over time, which supports its long-term margin trajectory, he further said.

Jiang expects JD Retail to generate 5% revenue growth in 2026, with margins of 4.9%.

The analyst raised the full-year adjusted net income estimate to RMB 30 billion, from RMB 28 billion, to reflect stronger margins at JD Retail and a faster contraction of losses at the food delivery business. The forecast is conservative and leaves room for further earnings upside, he added.

Price Action

Shares of JD.Com had risen by 7.90% to $33.98 at the time of publication on Wednesday.

Sony Music Publishing Lands Iconic Song Catalog In Major Blackstone Deal

Benzinga News — Wed, 13 May 2026 15:16:57 -0400

Sony Group Corporation (SONY ) shares traded higher Wednesday as investors reacted to a major music catalog acquisition by the company's publishing arm and continued buying into large-cap growth and entertainment stocks. The Nasdaq gained 0.90%, while the S&P 500 advanced 0.49%, supporting broader momentum across tech-linked names.

Sony Expands Music Catalog Portfolio

Sony Music Publishing, the publishing arm of Sony Music Group and one of the world's largest music publishers, agreed to acquire the full catalog of Recognition Music Group from Blackstone Inc. (BX ) in a deal reportedly valued at roughly $4 billion, according to the Financial Times.

The acquisition adds more than 45,000 songs to Sony's portfolio, including works from Beyoncé, Bruno Mars, Lady Gaga, Rihanna, Shakira, Mariah Carey, Bon Jovi, Fleetwood Mac and Red Hot Chili Peppers.

The deal marks another step in Sony's broader strategy to expand its global music rights business through premium catalog acquisitions. The transaction also aligns with Sony's previously announced partnership with GIC and Sony Music Group focused on investing in high-value music assets worldwide.

The acquisition follows Sony Music Publishing's 2025 purchase of Hipgnosis Songs Group, reinforcing the company's aggressive push into music ownership and recurring royalty-driven revenue streams.

Jon Platt, chairman and CEO of Sony Music Publishing, said the investment reflects Sony's confidence in "the enduring power of great music" and the long-term cultural value of iconic song catalogs.

Earnings Snapshot

Last week, Sony reported first-quarter earnings from continuing operations of 9 cents per share, down from 24 cents a year earlier. Revenue increased 12.3% year over year to $19.36 billion.

The company also reaffirmed its fiscal 2026 sales outlook of approximately $78.43 billion, roughly in line with Wall Street expectations.

Sony Analyst Outlook And ETF Exposure

Analysts currently maintain a Hold consensus rating on Sony shares, with an average price forecast of $22.00.

Recent analyst activity includes a downgrade from Bernstein to Market Perform on March 17, alongside a reduced $22 price forecast.

Sony also holds meaningful weightings in several thematic ETFs, including:

MUSQ Global Music Industry ETF (MUSQ ) - 4.31% weighting
Gabelli Global Technology Leaders ETF (GGTL ) - 6.28% weighting

Significance: Because SONY carries significant weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

SONY Price Action: Sony Group shares were up 2.53% at $22.72 at the time of publication on Wednesday, according to Benzinga Pro data.

AI Infrastructure Frenzy Sends Data Center CPU Market Into Overdrive

Benzinga News — Tue, 12 May 2026 14:24:31 -0400

Counterpoint Research analyst Parv Sharma said the global data center CPU market is entering a major transition as AI infrastructure demand reshapes competition among Intel Corp. (INTC ), Advanced Micro Devices, Inc. (AMD ), and Arm Holdings Plc (ARM )-based chip providers.

AI Infrastructure Reshapes CPU Demand

Sharma noted on Tuesday that the expansion of AI infrastructure has revived demand for data center CPUs as workloads increasingly shift from AI training to inference.

He noted that inference pipelines, orchestration layers, and head nodes still depend heavily on x86 computing power.

According to Sharma, the total addressable market for data center CPUs could expand to about $80 billion by 2028, representing a 2.9-fold increase from 2021 levels.

Agentic AI Changes CPU-GPU Dynamics

Sharma said the rise of agentic AI is increasing the importance of CPU resources in AI systems. He noted that CPU-to-GPU ratios are moving closer to 1:1, up from earlier levels near 1:8, as AI agents require more processing power for orchestration and real-time decision-making.

He added that CPUs now handle roughly 50% to 90% of the agentic AI workload, making them increasingly critical to next-generation AI infrastructure.

Intel, AMD And ARM Intensify Competition

Sharma said competition is accelerating across Intel, AMD, and ARM-based chips for cloud providers as vendors race to capture AI-optimized server demand.

The report tracks performance across Intel Xeon, AMD EPYC, and ARM-based custom silicon while also highlighting growing adoption of advanced manufacturing nodes such as Intel 18A, Intel 14A, and Taiwan Semiconductor Manufacturing Company Ltd.'s (TSM ) 3nm and 2nm technologies.

Sharma added that the market is increasingly shifting toward AI-optimized servers, creating new growth opportunities for vendors that can deliver higher-performance and more efficient CPU architectures.

Price Action: Intel shares were down 2.56% at $126.12, Advanced Micro Devices shares were unchanged 0.00% at $449.06, ARM Holdings shares were down 2.21% at $207.95 and Taiwan Semiconductor shares were down 1.43% at $398.76 during premarket trading on Tuesday, according to Benzinga Pro data.

Apple And Google Finally Close SMS Security Gap As iOS 26.5 Brings End-To-End Encrypted RCS Messaging For Android And iPhone Conversations

Benzinga News — Tue, 12 May 2026 14:24:25 -0400

Apple Inc.'s (AAPL ) latest iOS 26.5 update, alongside Alphabet Inc.'s (GOOG ) (GOOGL ) Google Messages, is beginning to roll out end-to-end encrypted Rich Communication Services, or RCS, messaging between iPhone and Android users. Sundar Pichai Highlights Major Cross-Platform Messaging Upgrade

On Monday, Alphabet CEO Sundar Pichai announced the milestone on X, writing, "Today, we're starting to roll out end-to-end encryption for RCS messaging between Android and iPhone users!"

Sameer Samat, president of Android Ecosystem, called it a "big news" moment, saying the new system "replaces outdated SMS with a more secure & private way to chat, no matter what phone you have."

How End-To-End Encrypted RCS Between iPhone And Android Works

With the update, messages exchanged between supported Android and iPhone devices are encrypted so that only the sender and recipient can read them.

The system is based on the GSMA's Universal Profile for RCS.

Apple first introduced RCS support with iOS 18 in September 2024, adding typing indicators, read receipts and improved media sharing.

The company pledged encrypted RCS support in 2025, with testing beginning earlier this year.

Carrier Support And Availability

Apple said the feature remains in beta and will roll out gradually over the coming months for both new and existing RCS conversations.

Users must enable RCS in device settings, though encryption is switched on by default where supported.

Carrier compatibility remains a key factor, with major U.S. providers including AT&T (T ), Verizon (VZ ) and T-Mobile (TMUS ) already listed.

Price Action: In premarket trading on Tuesday, Apple shares slipped 0.10% to $292.38, while Alphabet Class A fell 0.52% to $386.62 and Alphabet Class C declined 0.62% to $384.38, according to Benzinga Pro.

According to Benzinga Edge Rankings, GOOG ranks in the 94th percentile for Quality, reflecting strong performance across short, medium and long-term time frames.

Amazon Takes On Walmart And Target With Aggressive 30-Minute Delivery Service: Which US Cities Qualify?

Benzinga News — Tue, 12 May 2026 14:24:18 -0400

Amazon.com Inc. (AMZN ) said that it is expanding its "Amazon Now" service, offering delivery of groceries, household essentials and other items in 30 minutes or less across dozens of U.S. cities. In a company blog post, the e-commerce retailer said Amazon Now is currently widely available in Atlanta, Dallas-Fort Worth, Philadelphia and Seattle, with expansion underway in Austin, Houston, Minneapolis, Orlando, Phoenix, Denver and Oklahoma City.

Prime members pay a $3.99 delivery fee per order, while non-Prime customers pay $13.99. Orders below $15 carry additional fees.

Amazon said the service uses smaller fulfillment locations positioned closer to customers instead of relying only on larger warehouses.

"Amazon Now is for when you need or want the convenience of getting your Amazon order delivered in 30 minutes or less," said Udit Madan, senior vice president of Amazon Worldwide Operations.

The company added that customers can order groceries, electronics, personal care products and household essentials through the service, which operates 24 hours a day in most markets.

Retailers Push Faster Delivery

Amazon's latest push comes as retailers increasingly compete on delivery speed to capture more online spending.

Last month, Walmart Inc. (WMT ) said more than one-third of its online orders were being delivered within three hours as the retailer expanded same-day fulfillment capabilities.

Walmart has also been testing new store-based fulfillment systems in Dallas aimed at shortening delivery times and expanding marketplace operations.

Target Corporation (TGT ) has also continued expanding same-day fulfillment through its Shipt platform as retailers compete more aggressively on convenience and delivery speed.

Instant Commerce Expands

The broader retail industry is increasingly shifting toward "instant commerce," where companies aim to deliver products faster than consumers could drive to physical stores themselves.

The expansion also increases pressure on delivery-focused platforms, including DoorDash Inc. (DASH ), Instacart parent, Maplebear Inc. (CART ) and Uber Eats parent Uber Technologies, Inc. (UBER ), which helped normalize near-instant delivery expectations for groceries and household items.

Still, faster delivery remains expensive for retailers and consumers. More than 95% of shoppers prefer free standard delivery over paying extra for faster shipping, according to a recent McKinsey survey of consumer delivery preferences.

Amazon said Prime members globally received more than 13 billion same-day or next-day deliveries in 2025, while U.S. customers received more than 8 billion items through the company's fast-delivery network, up more than 30% from the prior year.

The United States Of Intel: Salute To Trump's Nearly $42 Billion Stock Profit

Benzinga News — Tue, 12 May 2026 14:24:12 -0400

Intel Corp. (INTC ) is no longer just a chipmaker. It has become a symbol of Washington's new industrial-market experiment.The U.S. government took a 9.9% passive stake in Intel last year, buying 433.3 million shares at $20.47 each through an $8.9 billion investment tied to CHIPS Act and Secure Enclave funding. At Intel's current price of $117, the U.S. government's 433.3 million shares are worth roughly $50.7 billion, representing an unrealized gain of about $41.8 billion, nearly a 5x return on the original $8.9 billion investment.

That turned Uncle Sam into one of Intel's most unusual shareholders: not an activist, not a hedge fund, not a sovereign wealth fund, but the United States itself.

INTC Victory Lap

Now the trade looks a lot less like a bailout and a lot more like a victory lap. Intel shares have surged in 2026, with the stock was up 219% this year as of Tuesday.

President Donald Trump has leaned into the rally, saying the U.S. made more than $30 billion on Intel stock in 90 days, according to Fox Business.

The chart below shows INTC stock performance in 2026 year-to-date:

But, the story is bigger than one chart.

Intel has spent years trying to reclaim relevance in semiconductors, chasing foundry credibility, domestic manufacturing scale and AI-era demand after losing ground to faster-moving rivals.

The government stake adds a powerful narrative layer: if chips are the new oil, Intel is being positioned as a national asset.

However, execution risk still remains. Foundries are expensive, competition is brutal and government support cannot manufacture margins by itself.

But markets trade on belief before they trade on proof, and Intel has something it lacked for years: momentum, political backing and a reason for bulls to keep saluting.

The "United States of Intel" trade may be unconventional, but Wall Street understands the language.

When a beaten-down legacy tech name gets a federal backstop, a national security halo and a surging stock price, traders do not ask for a flag. They buy the breakout.

INTC Price Action: Intel shares were down 9.45% at $117.21 at the time of publication on Tuesday, according to Benzinga Pro data.

SpaceX IPO Could Put Weak Space Stocks 'Into Obscurity,' Rocket Lab CFO Says

Benzinga News — Tue, 12 May 2026 14:24:04 -0400

Rocket Lab Corp. (RKLB ) CFO Adam Spice says a potential SpaceX IPO could be a defining moment for publicly traded space stocks, forcing investors to separate true operators from companies simply riding the space label.The Rocket Lab CFO spoke directly with retail investors in a Q&A session following the company's first-quarter earnings release.

"What's going to happen is the good companies are going to get dragged up by SpaceX," Spice said, referring to the SpaceX IPO. "And I think the less quality names are going to get basically put into obscurity."

SpaceX, led by Elon Musk, is reportedly weighing a mid-2026 IPO that could value the company at roughly $1.5 trillion.

Spice argued that SpaceX entering public markets would not lift all space-related stocks equally.

Instead, he said it would likely create a market of "haves and have nots," where investors reward companies with real space infrastructure, recurring contracts, launch capability, manufacturing depth and credible growth paths.

That could benefit Rocket Lab, which has positioned itself as one of the few publicly traded end-to-end space companies, spanning launch services, spacecraft manufacturing and space systems.

The company competes in a market where investor enthusiasm has often spread broadly across small-cap space names, regardless of balance sheet quality, revenue durability or operational scale.

'Lack of Any Discrimination Amongst Investors'

Spice said that the lack of discrimination may not survive a SpaceX listing.

"What I've seen is a complete or almost complete lack of any discrimination amongst investors across the names that have currently been in space," he said.

A SpaceX IPO would give public investors a direct benchmark for the sector's leader, potentially reshaping how Wall Street values the rest of the space economy.

Companies with meaningful revenue, proven execution and defensible technology could see renewed attention. Weaker names, especially those relying on promotional narratives or distant commercialization timelines, could face tougher scrutiny.

SpaceX going public may expand investor interest in the sector, but it may also raise the bar. The rising tide may not lift every rocket.

Stocks To Watch

In addition to Rocket Lab, here are some space stocks popular amongst retail investors that should be monitored as SpaceX prepares to enter the public market:

BlackSky Technology Inc. (BKSY )
Intuitive Machines, Inc. (LUNR )
EchoStar Corp. (SATS )
Starfighters Space, Inc. (FJET )
AST SpaceMobile, Inc. (ASTS )
Satellogic Inc. (SATL )
Virgin Galactic Holdings, Inc. (SPCE )
Voyager Technologies, Inc. (VOYG )

Novo Nordisk Presents New Wegovy Data Showing Strong Weight Loss, Fat Reduction

Benzinga News — Tue, 12 May 2026 14:23:28 -0400

Novo Nordisk A/S (NVO ) presented new sub-analyses from its STEP UP clinical trial at the European Congress on Obesity, highlighting that a higher dose of Wegovy helped people with obesity achieve substantial weight loss regardless of how quickly they initially responded to treatment. The company also said a separate analysis showed most of the weight lost with Wegovy came from body fat, while muscle function was preserved.

Higher-Dose Wegovy Delivered Greater Weight Loss

The STEP UP trial evaluated semaglutide 7.2 mg, semaglutide 2.4 mg, and placebo over 72 weeks in more than 1,400 adults with obesity who did not have Type 2 diabetes.

According to the data, participants taking the 7.2 mg dose lost an average of 21% of their body weight, equivalent to roughly 23 kilograms (~ 50 pounds) for the average participant who weighed 113 kilograms before treatment.

Patients on the 2.4 mg dose lost about 17.5% of body weight, while placebo participants lost 2.4%.

Novo Nordisk said the higher dose demonstrated a safety and tolerability profile consistent with the 2.4 mg dose.

STEP UP Analysis Examined Early Responders To Treatment

A new STEP UP analysis also examined how quickly participants responded to treatment. Researchers defined "early responders" as individuals who lost at least 15% of their body weight within the first 24 weeks.

Among patients taking the 7.2 mg dose, 27% qualified as early responders, compared with 21% in the 2.4 mg group and 3% in the placebo group. Early responders in the 7.2 mg group ultimately lost 27.7% of body weight by week 72.

Study Shows Majority Of Weight Loss Came From Fat

Another sub-analysis involving 55 participants used MRI scans to evaluate body composition changes. The company said 84% of weight loss with semaglutide was tied to reductions in fat mass.

Abdominal visceral fat declined by more than 30%, while muscle mass fell by about 10% from baseline. Researchers also reported preserved functional muscle strength, based on a 30-second sit-to-stand test.

NVO Price Action: Novo Nordisk shares were up 0.42% at $46.40 at the time of publication on Tuesday, according to Benzinga Pro. Over the past month, NVO has gained about 25% versus a 8.2% rise in the S&P 500 and is down roughly 10% year-to-date compared to the index's 6.9% gain.