Passport to Wall Street

Uber's Robotaxi Vision Could Take Years To Play Out: Analyst

Benzinga News — Fri, 26 Jun 2026 15:58:42 -0400

Uber Technologies Inc. (UBER ) may need thousands more autonomous vehicles on its platform before investors begin assigning greater value to its U.S. rideshare business, according to BTIG analyst Jake Fuller. In a research note published Friday, Fuller reiterated a Buy rating and maintained a $100 price forecast, but argued that Uber's growing list of autonomous vehicle (AV) partnerships has yet to meaningfully shift investor sentiment.

BTIG said fears that Alphabet Inc.'s (GOOGL ) (GOOG ) Waymo could dominate the U.S. robotaxi market continue to weigh on Uber's valuation, leaving little implied value for its domestic rideshare business after accounting for its delivery and international operations.

Waymo Remains The Clear Leader

According to BTIG estimates, roughly 4,100 robotaxis are currently providing paid rides across 11 U.S. cities. About 3,800 of those vehicles belong to Waymo, while only about 300 are spread across five competing AV platforms.

The firm estimates around 1,000 autonomous vehicles are available through the Uber app in the U.S. However, roughly 800 of those are Waymo vehicles, and about 500 are also accessible through the Waymo app.

That leaves Uber with only about 200 exclusive non-Waymo robotaxis, operating through Avride in Dallas and Motional in Las Vegas. BTIG does not expect Uber's exclusive AV fleet to reach the thousands until 2027 or 2028.

Long-Term View Remains Positive

BTIG said it still sees a long-term path for a fragmented autonomous vehicle market, with multiple platforms, car owners and fleet managers using Uber as a demand aggregator.

However, the firm said that shift could take years, with Waymo still the dominant platform and visibility limited. Investors likely need to see other AV platforms scale and a much larger robotaxi fleet on Uber's app before giving the company more credit for its U.S. rideshare business, BTIG said.

While Uber's on-app robotaxi count may rise in the second half, BTIG does not expect thousands of exclusive non-Waymo vehicles until late 2027 or 2028, leaving few near-term catalysts.

The brokerage maintained its Buy rating and $100 price forecast, based on a 15-times multiple of its 2027 EBITDA estimate. BTIG expects Uber's adjusted EBITDA to grow about 30% while continuing to benefit from expansion in mobility, delivery, advertising and Uber One memberships.

Uber Technical Analysis

Uber stock rose nearly 3% on Friday, outperforming a weaker broader market. The Nasdaq fell 0.81%, while the S&P 500 slipped 0.16%.

Uber is rebuilding momentum above key moving averages. The stock traded about 4.9% above its 20-day simple moving average of $71.43 and roughly 2% above its 50-day SMA of $73.45.

However, shares remain about 8.1% below the 200-day SMA of $81.56 after falling 19.5% over the past 12 months.

The MACD indicator remains above its signal line, pointing to improving buying momentum. Even so, the longer-term trend remains under pressure following the 50-day SMA's move below the 200-day SMA earlier this year.

Key resistance sits near $81, close to the 200-day SMA. Support is around $69, above the 52-week low of $67.19.

Uber Price Action

UBER Price Action: Uber Technologies shares were up 3.03% at $74.44 at the time of publication on Friday, according to Benzinga Pro data.

Anthropic Report Reveals The Rise Of The AI Agent Economy

Benzinga News — Fri, 26 Jun 2026 15:58:37 -0400

Anthropic released a new edition of its Economic Index, offering fresh insight into how artificial intelligence is reshaping work as users increasingly rely on autonomous AI agents rather than traditional chatbot interactions.

The report found that Claude usage has evolved significantly over the past year, with long-running agentic tasks through Claude Code and Cowork becoming more common. Anthropic said the shift prompted changes to how it measures AI adoption, including higher-frequency data sampling, new conversation classifiers, and the April launch of its first Economic Index Survey.

Among the report's findings, AI usage closely tracked the rhythms of daily life and work. Business-related conversations declined on weekends while personal uses-including emotional support, medical questions, and investment advice-increased. Tax-related requests also surged ahead of the U.S. filing deadline, while recipe requests peaked around dinner time and sleep-related questions spiked before dawn.

Anthropic also found that Claude's outputs are becoming increasingly sophisticated. Explanations, documents, and reports were the most common deliverables, while conversations tied to higher-paying occupations generally consumed more computing power, suggesting AI is being used for increasingly complex knowledge work.

Survey results showed respondents broadly expect AI capabilities to advance rapidly over the next year. More than one-third said they believe AI will be able to perform most or nearly all of their work tasks within 12 months, while nearly six in 10 expect AI to handle a larger share of their workload than it does today.

Despite concerns about automation, Anthropic said users who delegate more work to Claude were generally the most optimistic about AI's impact on their careers. Heavy AI users were more likely to expect improvements in pay, job security and job opportunities, while majorities also reported productivity gains, increased learning, and greater confidence that AI is making their skills more valuable.

The company said the findings suggest workers continue to view AI primarily as a collaborative tool rather than a replacement, with many respondents expressing hopes that AI will automate repetitive work while allowing humans to focus on more meaningful tasks.

OpenAI Drops GPT-5.6 'Sol,' Calls It The Strongest Model Yet As AI Arms Race Escalates

Benzinga News — Fri, 26 Jun 2026 15:58:06 -0400

OpenAI is launching a limited rollout of its GPT-5.6 lineup, introducing three tiers, Sol, Terra, and Luna, while saying a wider release is expected in the coming weeks. The company is taking a staged approach, saying the goal is to pair higher-end capability, particularly for security-related tasks, with tighter controls and more testing before opening access more widely.

The initial rollout is restricted to a small group of vetted partners, with participation already shared with the U.S. government, the company said in a blog post. Access is being delivered first through the API and Codex.

OpenAI said the approach is meant to be temporary, arguing that long-term government gating shouldn't become the default because it slows access for developers, enterprises, and cyber defenders but it sees the current structure as a necessary step while broader cyber policy frameworks are still being shaped.

At the top end, GPT-5.6 Sol is positioned as the flagship model, adding new reasoning controls like a "max effort" setting and an "ultra" mode that can deploy subagents for more complex workflows. OpenAI highlighted strong benchmark results across coding, biology, and cybersecurity tasks, including performance on Terminal-Bench 2.1 and GeneBench v1.

On the security front, the company says Sol is better at spotting and fixing software vulnerabilities than carrying out full exploit chains. In testing across browsers like Chromium and Firefox, it was able to surface bugs and exploit components, but didn't independently produce end-to-end working exploits under the conditions evaluated.

OpenAI also outlined a layered safety system combining training, real-time monitoring during outputs, account-level signals, and tiered access controls. During the preview, some prompts may be slowed or blocked for extra review as the company fine-tunes false positives ahead of wider release.

Behind the scenes, OpenAI says it has logged more than 700,000 A100-equivalent GPU hours on automated red-teaming to probe jailbreaks, alongside external expert testing. It also described a rapid patch cycle to reproduce newly discovered jailbreak methods and fold fixes into future evaluations.

Separately, GPT-5.6 Sol is slated to come to Cerebras in July, with throughput of up to 750 tokens per second, though access will start limited as capacity ramps. After the preview phase, OpenAI expects broader availability through ChatGPT, Codex, and its API.

Robinhood Is Built To Compound As Young Investors Enter Peak Wealth Years: Analyst

Benzinga News — Fri, 26 Jun 2026 15:57:58 -0400

Robinhood Markets Inc. (HOOD ) received a bullish initiation from BTIG on Friday, with the brokerage launching coverage with a Buy rating and a $125 price forecast, citing the company's long runway for asset growth, product expansion and customer engagement. BTIG analysts Andrew Harte and Brendan Greaney said Robinhood has evolved beyond its roots as a commission-free trading app into a broader financial platform spanning brokerage, crypto, prediction markets and wealth management.

Robinhood Growth Strategy And Customer Expansion

The firm expects the company to deliver more than 20% annual platform asset growth over the next decade, driven by a young customer base entering peak earning years, deeper engagement, new customer additions and international expansion.

BTIG acknowledged Robinhood trades at a premium valuation of about 46 times next-12-month GAAP earnings, compared with roughly 15 times for traditional brokerage peers. However, the analysts argued the premium is justified by the company's stronger growth profile and expanding product portfolio.

The brokerage said Robinhood's average customer is about 36 years old with an average account balance of roughly $13,000, compared with older customers and significantly larger account balances at legacy brokers. BTIG believes that positions the company to benefit from an estimated $124 trillion intergenerational wealth transfer over time.

Product Expansion Supports Long-Term Outlook

The analysts also highlighted Robinhood's growing suite of products, including retirement accounts, banking, prediction markets and international offerings, saying these services should increase customer retention and wallet share. Management's renewed investment in customer acquisition is also expected to support faster funded-account growth.

Key Catalysts And Price Forecast

BTIG sees several potential catalysts ahead, including second-quarter earnings, international expansion, prediction markets, the July launch of Trump Accounts, a stronger IPO pipeline and the removal of pattern day trading restrictions.

The firm's $125 price forecast is based on 40 times its fiscal 2028 earnings estimate, while it outlined a bullish scenario of $150 per share if crypto activity rebounds and customer growth accelerates. Its downside scenario values the stock at $60 if trading activity weakens and competitive pressures slow customer growth.

Robinhood Stock Performance And Technical Analysis

Robinhood stock climbed about 5% on Friday, outperforming the broader market. The Nasdaq fell 0.65%, while the S&P 500 edged up 0.03%.

The stock continues to trade above its 20-day, 50-day and 100-day simple moving averages of $93.65, $85.20 and $80.27, respectively. That signals the intermediate trend remains positive.

However, shares remain about 4.8% below the 200-day moving average of $102.57, leaving a key long-term resistance level intact.

Momentum indicators have weakened. The Moving Average Convergence Divergence (MACD) indicator remains below its signal line, suggesting upside momentum has slowed even as the stock continues to rise.

The 20-day moving average remains above the 50-day average, supporting the near-term trend. However, the 50-day average is still below the 200-day average following February's death cross, indicating longer-term caution.

Technical traders are watching resistance near $113.50 and support around $79.

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $106.25. Recent analyst moves include:

BTIG: Initiated with Buy (Forecast $125.00) (June 26)
Argus Research: Buy (Raises forecast to $110.00) (June 17)
Needham: Buy (Raises forecast to $97.00) (June 11)

HOOD Price Action: Robinhood Markets shares were up 4.64% at $97.80 at the time of publication on Friday, according to Benzinga Pro data.

Ulta's Unique Platform Can't Be Easily Replicated: Analyst

Benzinga News — Fri, 26 Jun 2026 15:57:32 -0400

Ulta Beauty (ULTA ) continues to demonstrate stability in its financial outlook, prompting Bank of America Securities (BofA) to reiterate its Buy rating and a $685 price forecast for the specialty retailer. In an analyst note released on Friday, BofA Securities analyst Lorraine Hutchinson, detailed insights from a virtual meeting with Ulta Beauty CFO Chris DelOrefice and SVP of Investor Relations Kiley Rawlins.

The financial institution highlighted management's focus on maintaining steady earnings flowthrough while maximizing prior strategic capital allocations.

Ulta Beauty's Focus on Profitable Growth

According to the BofA Securities report, Ulta Beauty management emphasized that fiscal year 2026 remains dedicated to driving profitable growth. The retailer plans to harvest returns from prior investments to capture additional market share and sustain future expansion.

Hutchinson noted that the analyst firm remains encouraged by management's commentary regarding SG&A discipline. BofA Securities expressed confidence in the company's ability to achieve its profitability targets, which include slight margin expansion.

Leveraging Prior Investments

The report clarified that the emphasis on profitable growth does not indicate a halt in capital spending. Ulta Beauty reiterated that it intends to drive revenue growth without compromising overall profitability.

Investments made during fiscal years 2024 and 2025 established a more robust data infrastructure.

BofA Securities noted that this first-party data serves as a competitive advantage, allowing the retailer to sharpen personalization and de-risk future capital commitments.

Management also emphasized that its fiscal year 2025 operating margin of 12.4% exceeded its prior long-term target, stating that the company is "not going backwards."

New Customer Acquisition Vehicles

To expand its top-of-funnel reach, Ulta Beauty introduced strategic initiatives, including TikTok Shop and a partnership with Bath & Body Works Inc.

Bank of America said Ulta Beauty is expanding its customer base without resorting to aggressive discounting, a strategy that could support both sales growth and profitability.

The brokerage noted that Ulta's TikTok Shop initiative is gaining traction through curated product bundles and exclusive brands "rather than heavy promotion," helping the retailer attract younger shoppers, particularly Gen Z.

By relying on product assortment and brand exclusivity instead of deep price cuts, Ulta may be able to preserve margins while strengthening its brand and broadening its customer reach.

Concurrently, the Bath & Body Works partnership introduces complementary home fragrance and body care items across more than 600 retail stores and online channels.

Management projects these initiatives will build larger shopping baskets, attract broader consumer demographics and increase store traffic.

Differentiated Omnichannel Model

Bank of America acknowledged that beauty retail is becoming more competitive and industry growth has moderated, but it said Ulta Beauty remains well positioned to outperform the broader market.

The firm attributed that resilience to Ulta's differentiated omnichannel model, which combines physical stores, digital personalization and a large loyalty program.

BofA expects those advantages to help the retailer continue gaining market share. Hutchinson stated that Ulta Beauty possesses a unique platform that competitors cannot easily replicate.

While major retailers like Amazon.com Inc, Target Corp, Walmart Inc and Sephora overlap with certain segments of the business, none offer the comprehensive mass-to-prestige product assortment.

BofA Securities concluded that the emotional, discovery-led nature of the beauty category makes Ulta Beauty's specialized model increasingly relevant.

Stock Performance And Technical Analysis

Ulta stock rose about 1% on Friday as investors rotated into consumer discretionary stocks. The Nasdaq slipped 0.4%, while the S&P 500 edged up 0.1%.

From a technical standpoint, ULTA is showing signs of a short-term recovery but remains below key longer-term trend levels.

The stock is trading about 3.2% above its 20-day simple moving average of $474.05. However, it remains about 3% below its 50-day moving average of $504.67 and roughly 13% below its 200-day moving average of $562.53.

The Relative Strength Index stands at 53.06, indicating neutral momentum. That suggests the stock is neither overbought nor oversold and may continue consolidating after recent gains.

The longer-term trend remains under pressure. The 20-day moving average is still below the 50-day average, while the 50-day average remains below the 200-day average following a bearish "death cross" formed in May.

Immediate resistance is around $543.50, while support is near $469.

Ulta Beauty Price Action

ULTA Stock Price Activity: Ulta Beauty shares were up 1.01% at $490.44 at the time of publication on Friday, according to Benzinga Pro data.

FedEx Freight's Pricing Power Is Paying Off

Benzinga News — Fri, 26 Jun 2026 15:57:27 -0400

FedEx Freight Holding Company Inc. (FDXF ) received renewed support from Bank of America (BofA) following its first earnings report as a standalone company, with the brokerage reiterating its Buy rating and raising its price forecast to $187 from $185. Analyst Ken Hoexter said the less-than-truckload carrier delivered fiscal fourth-quarter adjusted operating income above expectations, driven by stronger pricing, higher revenue per shipment and increased weight per shipment.

Revenue rose 5% year over year to $2.41 billion, while adjusted operating income reached $363 million, topping the firm's forecast by $27 million.

Transition Outlook Improves

FedEx Freight also introduced financial targets for its June-to-December 2026 transition period, projecting revenue growth of 4% to 6%, adjusted operating income of $605 million to $645 million, adjusted operating margins of 11.5% to 12.0%, and adjusted earnings of $2.40 to $2.60 per share. Hoexter raised his estimates to reflect the stronger outlook.

The analyst expects earnings growth during the transition period to be driven primarily by pricing, with higher yields expected to add roughly 200 basis points to margins.

Efficiency initiatives are also expected to support profitability, although variable compensation costs, transition service agreement expenses and softer shipment volumes are likely to partially offset those gains.

Margin Expansion Remains Key Thesis

BofA increased its 2027 earnings estimate by about 2% to $5.41 per share and said FedEx Freight's focus on profitable revenue growth and long-term margin improvement supports a higher valuation.

The firm values the shares at 34.5 times projected 2027 earnings, a slight discount to peers including XPO, Inc. (XPO ), Old Dominion Freight Line, Inc. (ODFL ) and Saia, Inc. (SAIA ) because the company is still transitioning as an independent business.

Hoexter said management believes the ongoing unwinding of bundled customer contracts poses limited pricing risk because only about 10% of revenue is tied to those agreements and discounts have averaged just 1% to 3%.

Management also identified retail, healthcare, grocery, data centers and small- to medium-sized businesses as key growth markets.

FDXF Stock Price Activity: FedEx Freight shares were down 4.79% at $150.93 at the time of publication on Thursday, according to Benzinga Pro data.

DraftKings Stock Emerges As 2026 World Cup Winner: Prediction Market, Sportsbook Break Records

Benzinga News — Fri, 26 Jun 2026 15:57:19 -0400

The 2026 World Cup is being celebrated worldwide by soccer fans and others who pay attention to this tournament that happens every four years and brings countries and people together. One of the companies likely celebrating the tournament is DraftKings Inc (DKNG ), which has had record engagement.

DraftKings Stock Emerges as World Cup Winner

DraftKings announced Friday the launch of DKeX, a proprietary prediction markets exchange that is integrated into the DraftKings sportsbook and casino app.

The launch expands on the company's previously released prediction markets with new backend vertical integration and the ability to keep users in one app, so they don't use another platform for predictions.

DKeX comes from DraftKings' previous acquisition of Railbird Technologies, a CFTC-licensed platform.

News of the launch sent shares of the sportsbook company higher Friday morning. Investors should also be paying attention to the numbers disclosed Friday by the company about the World Cup.

On Friday, DraftKings said its DraftKings Prediction segment is seeing strong growth during the World Cup. The company reported $3.4 billion in annualized consumer volume and $11.3 billion in annualized trading volume for the week ending June 21.

The company previously announced that one week into the World Cup, DraftKings Predictions had a 3x increase in first-time customers and saw trading volume up 87%.

The company's prediction market also saw "combos," which represent around 40% of trading volume, with users putting more than one outcome into each prediction.

And it's not just the company's prediction markets segment that is winning.

After one week in the World Cup, the company said its handle on the event was five times higher than at the same stage of the 2022 World Cup.

DraftKings reported that the matches between the U.S. and Paraguay, and Morocco and Brazil, were the two largest soccer events in company history for betting handle and active customers who bet on the event.

This was, of course, data after only one match for each team, including the U.S.

What's Next for World Cup

The group stage of the World Cup is nearing its end, and the top 32 teams will advance to the knockout rounds.

The U.S. team has already qualified, winning their group, and will face Bosnia and Herzegovina in the round of 32.

In the 2022 World Cup, the U.S. faced the Netherlands in the round of 16 right after the group stage and lost, ending their tournament run.

A longer path for U.S. could be good for sportsbooks such as DraftKings in the U.S.

What some investors and analysts may be missing is the structure of this year's global event. The 2026 World Cup included 48 teams, instead of the traditional 32 teams. The top third-place teams in the group stage will also move on, creating a new knockout bracket of 32 teams, instead of the usual 16.

This gives sportsbooks and prediction markets more games for consumers to wager on. The tournament features 104 games this year, up from 64 in the 2022 World Cup.

More games and the success of the U.S. team could be key factors in betting handle, seeing a significant increase from the last tournament.

DraftKings Stock Price Action

DraftKings stock is up 5.15% To $24.29 on Friday versus a 52-week trading range of $20.46 to $48.78. DraftKings stock is down 32.3% year-to-date in 2026.

Amazon Stock Trending As Capex Concerns, Prime Day Questions, Insider Sales Pile Up

Benzinga News — Fri, 26 Jun 2026 15:57:10 -0400

Amazon.com Inc. (AMZN ) shares are in the spotlight Thursday as a combination of capital expenditure concerns, Prime Day demand dynamics and persistent insider selling keeps the company in the headlines.The Capex Overhang

The dominant story weighing on AMZN in 2026 has been its extraordinary capital expenditure trajectory. Amazon's projected capex budget for 2026 stands at approximately $200 billion-dedicated primarily to scaling AI infrastructure and custom Trainium silicon-which has compressed trailing twelve-month free cash flow by 95% to just $1.2 billion. That dramatic compression has intensified institutional concern about the timeline for returns on AI investment, even as the underlying business continues to perform strongly.

First quarter 2026 revenue came in at $181.5 billion with a 70% EPS beat, and AWS revenue surged 28% year-over-year, its fastest growth in 15 quarters. The tension between strong business results and shrinking free cash flow is the central debate for Amazon investors right now.

The Prime Day Question

Amazon's Prime Day 2026-expanded to four days from June 23-26-got off to a strong start, with online spending on the first day rising 5.3% year-over-year to $8.3 billion. But analysts are flagging a structural concern: by moving Prime Day to June, Amazon pulls retail demand forward into Q2, threatening to create unfavorable year-over-year comparisons in the second half of the year. Domestic Prime membership saturation may also limit incremental growth from the event going forward.

The Insider Selling Overhang

Recent SEC filings show approximately $51.6 million in insider sales over the past three months with zero corresponding insider purchases, a pattern that has dampened market sentiment and added to technical downside pressure. The stock is currently trading roughly 12% below its 52-week high of $278.56, with a consensus analyst price target of $309.24 implying significant upside if the capex concerns prove manageable.

Amazon Shares Edge Lower

AMZN Price Action: At the time of publication, Amazon shares are trading 0.08% higher at $227.20, according to data from Benzinga Pro.

Nike Shares In Focus As Company Names New CFO, Analysts Weigh In Ahead Of Q4 Earnings

Benzinga News — Fri, 26 Jun 2026 15:57:04 -0400

Nike Inc. (NKE ) shares are in the spotlight Friday as a CFO transition and a wave of analyst activity draw attention to the sportswear giant ahead of its fiscal fourth-quarter earnings report next week. CFO Transition

Nike announced on June 23 that David M. Denton will join the company as Executive Vice President and CFO, effective August 17. Denton succeeds Matthew Friend, who will step down at that time and remain with the company through September 4 to support an orderly transition. Friend will participate in Nike's fourth quarter fiscal 2026 earnings call on June 30 as planned.

Denton joins Nike from Pfizer, where he has served as CFO since May 2022. He brings more than 30 years of finance and operating leadership experience, including previous CFO roles at Lowe's and CVS Health.

"Dave is a proven public-company CFO who knows how to help great consumer brands operate with discipline and invest to win," said CEO Elliott Hill.

Analyst Consensus & Recent Actions

The stock carries a Hold rating with an average price target of $52.94. Recent analyst moves include:

Keybanc: Downgraded to Sector Weight (June 26)
BTIG: Buy (Lowers Target to $55.00) (June 25)
BNP Paribas: Underperform (Maintains Target to $23.00) (June 23)

Earnings & What To Watch

Nike is expected to report earnings per share of 12 cents and revenue of $10.85 billion. For the prior-quarter, the company reported earnings per share of 35 cents, beating the consensus estimate of 28 cents. It also reported revenue of $11.28 billion, beating the consensus estimate of $11.23 billion.

Investors should closely monitor same-store sales growth, which has been under pressure, as well as e-commerce growth trends, which are critical for Nike's recovery strategy. Additionally, inventory levels will be crucial to watch; any significant increases could signal overproduction and further strain on margins, especially given the current demand challenges.

Nike Shares Edge Lower

NKE Price Action: At the time of publication, Nike shares are trading 0.76% lower at $40.59, according to data from Benzinga Pro.

Dan Ives Says Microsoft And Meta Are Being Treated Like 'Bear Market' Stocks

Benzinga News — Fri, 26 Jun 2026 15:56:55 -0400

Microsoft Corp. (MSFT ) and Meta Platforms Inc. (META ) are spending hundreds of billions of dollars to build the artificial intelligence infrastructure powering the next generation of computing. Yet, according to Wedbush analyst Dan Ives, investors are rewarding the companies selling the picks and shovels-while punishing those footing the bill. The dynamic has become especially evident following Micron Technology Inc.'s (MU ) blockbuster earnings, which reignited enthusiasm for AI memory stocks even as Microsoft and Meta continue to face heavy selling pressure.

Ives described the current market as a "Twilight Zone," arguing that investors have become increasingly impatient with hyperscalers waiting for their massive AI investments to translate into meaningful revenue growth.

Microsoft, Meta Face An AI 'Air Pocket'

According to Ives, the market is currently in an "air pocket stage" where Big Tech's unprecedented spending has yet to produce the financial payoff investors are looking for.

"We are in an 'air pocket stage' right now where the $700 billion of Big Tech cap-ex this year is fueling the AI buildout... and tech investors are growing increasingly frustrated by the patience needed around Microsoft and Meta in particular seeing the fruits of their labor," Ives wrote.

The analyst said Microsoft and Meta are being treated "like they are bear market names that cannot be owned," even though both remain central to what he calls the Fourth Industrial Revolution.

Instead of buying the companies building AI platforms, investors have rotated into beneficiaries such as Micron and other AI infrastructure names that are already seeing stronger demand and earnings momentum.

Why Micron Is Getting The Market's Attention

Ives believes the divergence reflects timing rather than fundamentals.

Memory suppliers and infrastructure companies are benefiting immediately from the AI buildout as hyperscalers race to expand data centers and computing capacity. Meanwhile, companies such as Microsoft, Meta, Amazon.com Inc. (AMZN ) and Alphabet Inc. (GOOGL ) (GOOG ) are still waiting for those investments to generate the next wave of monetization.

"Meta is essentially looking to transform its business and that requires massive investments that will take some time to hit numbers," Ives said.

That gap has encouraged investors to favor companies with more immediate AI revenue catalysts, even as hyperscalers continue to finance the industry's expansion.

Dan Ives Says The Opportunity Is In Big Tech

Despite the recent divergence, Ives believes investors are becoming too focused on short-term uncertainty.

The analyst argues the current weakness in Microsoft and Meta represents "short-term pain for long-term gain," reiterating his view that the AI revolution remains in its early stages.

"We believe this is Year 3 of a 10-year AI buildout," Ives wrote, adding that the recent bearish narratives surrounding Big Tech have overshadowed what he sees as "future massive growth prospects."

For investors willing to look beyond near-term monetization concerns, Ives believes today's "Twilight Zone" market could ultimately create some of the biggest buying opportunities in the AI trade.

Xbox Prices Surge Again As Microsoft Expects Memory Costs To Double By Fall 2027, Joins Apple, Sony And Nintendo In Wave Of Hardware Price Hikes

Benzinga News — Fri, 26 Jun 2026 15:56:48 -0400

Microsoft Corp (MSFT ) has raised Xbox, saying soaring memory costs fueled by the AI boom are making gaming hardware significantly more expensive.

Microsoft Cites AI-Driven Memory Crunch Behind Latest Xbox Price Hike

On Thursday, Microsoft announced that Xbox Series X and Series S consoles will become more expensive starting Aug. 1.

In a blog post, the company said it had worked with suppliers for months in an effort to avoid another increase but ultimately couldn't absorb higher component costs.

"Unfortunately, console storage and memory prices have increased by more than 2.5x and we expect another doubling by the fall of 2027," Microsoft said.

Alongside the Xbox price hike, Microsoft unveiled buy now, pay later and zero-interest financing options, describing the programs as a way to make Xbox consoles "more accessible" despite rising prices.

The updated pricing puts the Xbox Series S 512GB at $500, the 1TB model at $600, the Xbox Series X 1TB Digital Edition at $750 and the 1TB disc-drive version at $800, as per CNET. Microsoft also said it will discontinue the 2TB Xbox Series X.

AI Infrastructure Is Reshaping Consumer Electronics Pricing

The company attributed the latest increase primarily to soaring storage and memory costs, which have been driven higher by unprecedented demand for AI infrastructure.

As technology companies continue investing billions of dollars in AI data centers, memory manufacturers have shifted production toward high-margin chips used in AI servers, tightening supplies for consumer electronics.

The result has been higher prices for key components used in gaming consoles, PCs and other devices.

Apple, Sony, Nintendo And Valve Face Similar Cost Pressures

Microsoft is not alone in passing higher costs on to consumers.

Sony Group (SONY ) has raised PlayStation 5 prices multiple times, while Nintendo Co (NTDOY ) is set to increase Switch 2 prices after previously raising prices for the original Switch.

Apple Inc. (AAPL ) joined the trend on Thursday by raising prices on select MacBooks and iPads after CEO Tim Cook said higher memory and storage costs had become unavoidable.

Price Action: Microsoft shares closed Thursday down 3.46% at $352.83 and rose 0.74% to $355.44 in after-hours trading, according to Benzinga Pro.

According to Benzinga Edge Rankings, Microsoft stock scores in the 93rd percentile for Quality, though its stock has posted negative returns over the short, medium and long term.

Why Apple Just Suffered Its Worst Crash In Over A Year

Benzinga News — Fri, 26 Jun 2026 15:56:32 -0400

Apple Inc. (AAPL ) stock tumbled more than 6% on Thursday, marking its biggest one-day decline since April 2025, after the company raised Mac and iPad prices. Investors viewed the move as a key test of Apple's pricing power ahead of any potential iPhone price increases. The iPhone accounts for nearly half of Apple's business. At the same time, Macs and iPads together represent about 14% of revenue, making the smaller categories a lower-risk place to test customer response, CNBC reported on Friday.

Apple linked the increases to higher memory and storage costs driven by demand for AI data centers.

Reportedly, investors are watching whether Tim Cook raises iPhone prices before John Ternus takes over as CEO on Sept. 1, which could give the next leader a higher baseline price and less margin pressure.

Apple can either pass costs to customers, absorb the margin hit, or diversify its supply chain, according to the report.

The company has reopened talks with Chinese memory suppliers after facing backlash over similar discussions in 2022.

Dan Ives Says Apple Had To Protect Margins

Wedbush Securities analyst Dan Ives told CNBC on Friday that Apple needed to raise prices because memory costs have surged across the technology supply chain.

He said Apple waited as long as it could, but had to act at the start of what he sees as a major three-year hardware cycle.

Ives said the increases may drive only limited churn, especially in higher-end products, and he viewed the stock reaction as overdone relative to the likely impact on demand and earnings.

Sunil Garg Sees Broader Pressure On Consumer Tech

Lighthouse Canton CIO Sunil Garg told CNBC on Friday that the AI capital spending boom should continue to be funded because hyperscalers continue to raise capital through equity and debt.

He said that supports demand for upstream AI infrastructure companies, especially memory suppliers with locked-in, noncancelable orders.

However, Garg said Apple and Microsoft Corp.'s (MSFT ) price increases point to a broader consumer technology challenge as rising costs and AI-driven changes pressure margins and business models.

Gil Luria Says Apple Faces Three Pricing Drivers

D.A. Davidson's Gil Luria told CNBC on Thursday that Apple's price increases reflect higher memory costs, a major upgrade cycle, and the possible launch of a foldable iPhone priced above $2,000.

He said Apple is raising prices now to manage memory cost pressure, avoid weaker pricing next year, and prepare customers for a higher-priced foldable device.

Luria said Apple must carefully balance the increases to preserve growth into next year, especially as investors continue to treat the stock as a safer large-cap technology name despite potentially slower growth.

AAPL Price Action: Apple shares were down 0.01% at $275.12 during premarket trading on Friday, according to Benzinga Pro data.

After Anthropic Showdown, Trump Administration Presses OpenAI To Limit GPT-5.6 Release: Report

Benzinga News — Fri, 26 Jun 2026 15:56:26 -0400

The Trump administration has reportedly asked OpenAI to limit the distribution of its forthcoming model, GPT-5.6, to a select group of government-approved partners, citing potential security risks.

The request from White House's Office of the National Cyber Director and Office of Science and Technology Policy comes as the administration is in the process of creating a framework for testing and evaluating the security of new models, The Information reported on Thursday. The report also indicated that OpenAI CEO Sam Altman confirmed the plans for a limited rollout in a memo to staff.

In the memo, Altman said that they had made it clear to the U.S. government that this was not their preferred long-term model and that they would work with the government and others in the industry to achieve a more sustainable approach for future releases.

Another report by Axios indicated that Altman spoke with Commerce Secretary Howard Lutnick about GPT-5.6 on Wednesday.

The publication reported that the government's intervention was driven by GPT-5.6's "Mythos-like" capabilities, rather than any broader shift toward increased government oversight. A source said the administration is focused on ensuring companies implement adequate safeguards for highly advanced AI models of that caliber.

OpenAI and the White House did not immediately respond to Benzinga's request for comments.

Trump's AI Crackdown Expands

The move follows growing concerns about advanced AI misuse and the Trump administration's clash with Anthropic, which disabled access to its Fable 5 and Mythos 5 models after being directed to block foreign nationals from using them earlier this month.

Later, President Donald Trump said he initially viewed Anthropic as a potential national security risk but now believes the AI startup acted responsibly after complying with a U.S. directive to restrict access to its most advanced AI models.

White House AI and Crypto Czar David Sacks said the administration became increasingly concerned that Anthropic's AI models could be exploited as cyberweapons following reported jailbreak vulnerabilities in its "Fable" model. He said officials viewed the systems as potentially dual-use because of their advanced cyber capabilities, intensifying scrutiny of the company's AI rollout.

Meanwhile, OpenAI is reportedly considering delaying its IPO until next year as advisers recommend waiting for more stable market conditions. The company had been preparing for a late-2026 listing and confidentially filed draft registration documents with the SEC earlier this month while CEO Sam Altman pursued a $1 trillion valuation.

Uber Scores Last-Minute Win As Gavin Newsom Signs Deal That Ends $50 Million California Ballot Showdown

Benzinga News — Fri, 26 Jun 2026 15:56:09 -0400

Governor Gavin Newsom has signed a last-minute legislative agreement between Uber Technologies Inc (UBER ) and California trial attorneys, thereby averting a potential ballot measure showdown.

The agreement, embodied in SB 623, introduces new safety requirements for ride-hailing companies while tightening rules on medical lien practices that Uber says inflate car crash lawsuit payouts and reduce victims' settlements.

Although Uber initially sought stricter limits, the agreement does not impose firm caps on attorneys' fees in car crash lawsuits. Following Gov. Gavin Newsom's signature, both Uber and the Consumer Attorneys of California agreed to withdraw their competing November ballot initiatives.

This agreement comes after a months-long TV advertising battle between the two groups, with combined spending exceeding $50 million. As part of the agreement, Uber will enhance driver background checks and adopt additional safety standards, which trial attorneys say could help prevent sexual assaults and other misconduct.

Supporters say the deal will prevent private equity firms from profiting off medical debt tied to car crash victims. The California Assembly and Senate overwhelmingly approved the bill before the deadline to remove competing ballot initiatives from the November election.

Uber's Shift Beyond Drivers

The agreement follows a series of legal battles faced by Uber. Earlier in June, the ride-hailing giant sued New York City over a driver protection law. In a federal court filing, the company argued that New York City's Local Law 52 of 2026 would harm its brand, erode customer trust, and increase safety risks. The law, set to take effect on July 28, allows drivers to be deactivated for offenses including account sharing, fraud, violence, sexual harassment or assault, and discrimination.

Meanwhile, Uber CEO Dara Khosrowshahi said the company is evolving from a ride-hailing platform reliant on human drivers into an open marketplace that combines gig workers with third-party autonomous vehicle fleets. Rather than building its own self-driving cars, Uber is pursuing a multi-billion-dollar strategy to integrate robotaxis from multiple automakers and technology partners.

Alphabet Hit By Another Wave Of AI Departures: Report

Benzinga News — Fri, 26 Jun 2026 15:56:03 -0400

Alphabet Inc. (GOOGL ) (GOOG ) stock was trading lower in Friday's premarket session as investors pulled back from large-cap technology stocks amid a broader risk-off mood. Nasdaq futures were down 1.26%, while S&P 500 futures fell 0.65%. The decline came as investors weighed reports of fresh AI talent departures at Google alongside Alphabet's upcoming addition to the Dow Jones Industrial Average.

AI Departures Pressure Alphabet Shares

Alphabet shares reversed gains after reports that more Google AI researchers planned to leave for rival labs, including Anthropic and OpenAI, CNBC reported on Thursday.

The report said the departures raised concerns about whether Google can retain top AI talent as competitors offer the potential upside of pre-IPO equity.

At least five researchers from Google's core AI team left for rival labs over seven days, including Gemini co-lead Noam Shazeer, who is headed to OpenAI, and Nobel-winning DeepMind scientist John Jumper, who is headed to Anthropic, CNBC reported on Thursday.

The latest exits come as Google works to rebuild credibility in AI after a difficult start to the generative AI cycle, the report noted.

Dow Addition Marks Symbolic Shift

Separately, Alphabet will replace Verizon Communications Inc. (VZ ) in the Dow Jones Industrial Average before the open on Monday, June 29. The move gives Dow more exposure to mega-cap technology stocks and the AI trade, CNBC reported on Wednesday.

Reportedly, Verizon had become less important to the price-weighted index because of its lower share price, representing just 0.5% of the Dow. Alphabet's larger share price and market value make it a more representative member of the Communication Services sector, according to the report.

Technical Analysis

From a trend perspective, the stock is still above its 200-day SMA ($313.36) and 100-day SMA ($338.59), which keeps the longer-term structure constructive even as the tape softens.

The issue is the shorter-term trend: GOOGL is trading 6.1% below its 20-day SMA ($363.45) and 7.6% below its 50-day SMA ($369.27), and the 20-day SMA is sitting below the 50-day SMA, reinforcing near-term pressure.

Earnings & Analyst Outlook

Looking further out, the next major catalyst for the stock arrives with the July 22, 2026 (estimated) earnings report.

EPS Estimate: $2.87 (Up from $2.31 YoY)
Revenue Estimate: $113.54 Billion (Up from $96.43 Billion YoY)
Valuation: P/E of 26.2x (Indicates premium valuation relative to peers)

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $423.46. Recent analyst moves include:

Needham: Buy (Maintains Forecast to $450.00) (June 3)
HSBC: Buy (Lowers Forecast to $420.00) (June 2)
Piper Sandler: Overweight (Raises Forecast to $445.00) (June 1)

Top ETF Exposure

State Street Communication Services Select Sector SPDR ETF (XLC ): 9.90% Weight
WisdomTree US Quality Growth Fund (QGRW ): 9.02% Weight
MFS Active Growth ETF (MFSG ): 9.20% Weight

Significance: Because GOOGL carries such a heavy weight in these funds, any significant inflows or outflows will likely trigger automatic buying or selling of the stock.

Price Action

Price Action: GOOGL shares were down 0.70% at $341.30, and GOOG shares were down 0.77% at $339.56 during premarket trading on Friday, according to Benzinga Pro data.

Could Elon Musk’s SpaceX Buy T-Mobile? Analyst Sees Wireless Giant As ‘Clear Choice’

Benzinga News — Fri, 26 Jun 2026 15:55:55 -0400

Elon Musk's Space Exploration Technologies Corp. (SPCX ) may be considering an acquisition of T-Mobile US Inc. (TMUS ) in a strategic move to expand into the wireless business, according to an analyst's prediction.

TD Cowen analyst, Gregory Williams, suggested that T-Mobile could be the "clear choice" for SpaceX if it fails to secure a wholesale network deal or if it prefers to own a wireless business outright, reported Forbes. The analysis stems from SpaceX's existing partnership with T-Mobile through its Starlink satellite internet business. As SpaceX seeks to expand Starlink into a broader wireless offering, T-Mobile could emerge as a potential acquisition target.

In its IPO filing, SpaceX estimated the addressable market for Starlink Mobile at $740 billion, hinting at plans to "expand our Starlink Mobile offering," thereby positioning Starlink Mobile as a potential competitor to Verizon Communications Inc. (VZ ), AT&T Inc. (T ), and other providers.

According to a Financial Times report on Friday, SpaceX President Gwynne Shotwell told investors about the company's plans to launch a Starlink retail product for U.S. consumers and build its own terrestrial mobile network.

Williams also suggested that SpaceX could consider acquiring AT&T or a cable TV company. The analyst said Comcast Corp. (CMCSA ) and Charter Communications could also be attractive acquisition targets for SpaceX because both have wholesale network agreements with Verizon.

SpaceX and T-Mobile did not immediately respond to Benzinga's request for comments.

Earlier this year, when an X user asked Musk about "Starlink phone", he responded that it was "not out of the question at some point," adding that it would be "very different" from today's smartphones and optimized for AI workloads. Days later, however, he clarified that SpaceX is "not developing a phone."

In November, EchoStar Corp. (SATS ) said it would sell an additional $2.6 billion worth of U.S. wireless spectrum licenses to SpaceX in exchange for equity, expanding the companies' previously announced $17 billion deal. The AWS-3 spectrum will support mobile and satellite communications, subject to regulatory approval.

This news also follows recent suggestions from Elon's biographer, Walter Isaacson and investor Anthony Pompliano about a potential merger between Tesla Inc. (TSLA ) and SpaceX.

TMUS holds a growth rating of 28.43% and a quality rating of 34.69%, according to Benzinga's Proprietary Edge Rankings. The Benzinga growth metric evaluates a stock's historical earnings and revenue expansion across multiple timeframes, prioritizing both long-term trends and recent performance.

TMUS Price Action: On a year-to-date basis, TMUS declined 9.02%, as per Benzinga Pro data. On Thursday, it closed 0.43% higher at $181.57.

Disney And Apple Almost Merged, Here's Why The Deal Didn't Work

Benzinga News — Thu, 25 Jun 2026 12:48:23 -0400

Media giant Walt Disney Co (DIS ) has grown through acquisitions of several media companies under the previous leadership of CEO Bob Iger. The company may have looked significantly different if one or two proposed deals had happened.

Iger recently stepped down from a second stint leading Disney as the CEO. Now no longer the CEO of the company, Iger seems eager to talk about his lasting legacy at the media giant and what could have been.

In an interview with the Financial Times, Iger said that Disney almost acquired social media platform Twitter, but the CEO got cold feet and worried that the smaller company could be a "horrible distraction."

Iger said Disney could have bought Twitter for "a very attractive price" before it pulled out of a deal.

Iger also admitted that Disney discussed plans of a potential merger with Apple Inc (AAPL ).

"We talked about it internally, and we had some conversations with Apple about it, but it never went anywhere," Iger said. "Apple didn't show that much interest."

According to a report from 9to5Mac, Iger previously wrote in a memoir that he believed Apple and Disney would have merged if Apple co-founder and former CEO Steve Jobs was still alive.

Also on the potential acquisition list was James Bond, the spy franchise, which is now part of Amazon.

Iger's Deals That Happened

The latest Iger interview sees the former CEO celebrate the deals he did get done during his time as Disney CEO from 2005 to 2020 and again from 2022 to 2026.

This includes the following acquisitions:

2006: Pixar, $7.4 billion
2009: Marvel, $4 billion
2012: Lucasfilm, $4.1 billion
2019: Fox, $71 billion

Iger recalled a working relationship with Pixar and its co-founder Jobs, with the relationship between the two companies once on the rocks.

"I knew if I don't fix Disney Animation, I'm not going to be a CEO very long," Iger said.

Iger recalled working to put Disney content on the video iPod, a deal that helped win over Jobs and made him like the media company more, ahead of an eventual acquisition deal.

The acquisitions of Pixar, Lucasfilm and Marvel (best known as a "comic book" company) saw investors and Hollywood insiders skeptical that any would work. But the Pixar and Marvel deals have transformed Disney and are now known as two of the best back-to-back deals by a CEO.

The Lucasfilm deal, which brought Star Wars into Disney's control, was also viewed as a win and profitable.

Disney's large deal for 21st Century Fox in 2019 has drawn plenty of pushback and remains a key talking point today. Iger views the deal as a major win as it boosted Disney's future in streaming, gaining majority control of Hulu and a large content library.

"It enabled us to be a number two to Netflix globally and, if my goal was to create longevity or endurance for the company, both as a brand and as a business, that's what Disney now has."

Micron Technology: How 16 Deals Took Semiconductor Company From Cyclical Bet To AI Backbone

Benzinga News — Thu, 25 Jun 2026 12:48:16 -0400

Shares of Micron Technology Inc (MU ) rallied on Thursday after the company reported upbeat fiscal fourth-quarter results.

Here are some key analyst takeaways:

RBC Capital Markets analyst Srini Pajjuri reiterated an Outperform rating, while raising the price target from $1,200 to $1,500.
Needham analyst Quinn Bolton maintained a Buy rating, and raised the price target from $1,550 to $1,650.
KeyBanc Capital Markets analyst John Vinh reaffirmed an Overweight rating, while taking the price target higher from $600 to $1,600.
DA Davidson analyst Gil Luria reiterated a Buy rating, while cutting the price target from $1,500 to $2,000.
JPMorgan analyst Harlan Sur maintained an Overweight rating, while raising the price target from $500 to $1,540.
Cantor Fitzgerald analyst C.J. Muse reaffirmed an Overweight rating and price target of $1,500.

RBC Capital Markets: Micron reported revenue and non-GAAP earnings of $41.5 billion and $25.11 per share. That's significantly higher than consensus estimates of $35.9 billion and $20.86 per share, respectively. The company generated higher-than-expected gross margins of 84.9%. Pajjuri credited this to continued pricing strength and a favorable product mix.

The company also signed longer-term agreements (SCA) with 16 customers (2 hyperscalers) covering about 25% of the revenue. "Since these SCAs come with floor prices, Micron is likely to generate gross margins "significantly above prior peak levels," he further stated.

Needham: Micron Technology reported its results and guidance well above expectations, Bolton said. The company signed 16 strategic agreements, which should represent 20% of its DRAM volume and 33.3% of NAND volumes through 2030, he added.

Price floors across these contracts could take Micron's gross margins "well above" its prior peak of 62%, the analyst stated. "Micron does not currently have line of sight to supply/demand parity," he further wrote.

KeyBanc Capital Markets: Micron guided fiscal fourth-quarter revenue at $50.0 billion and earnings at $31.00 per share, higher than consensus estimates of $43.4 billion and $25.59 per share, respectively, Vinh said. "While industry supply will gradually improve in C28, MU does not have line of sight to supply catching demand," he wrote.

The company announced 16 SCAs, representing $100 billion in cumulative revenues, the analyst stated. These 5-year agreements require upfront deposits of $22 billion and will ensure gross margins are well above Micron's historical peak of 61.4%, he added.

DA Davidson: Micron's total revenues grew 346% year-on-year to $41.5 billion, topping consensus of $36.3 billion, Luria said. The broad-based beat saw NAND and DRAM revenues outpacing expectations. Data center SSD revenue is growing more than 100% sequentially, he added.

Management's fourth-quarter revenue guide of $49-$51 billion implies 342% year-on-year growth in the quarter and the company exiting the year with 245% revenue growth, with this "explosive growth" being driven by "unprecedented growth in data centers and insatiable demand for DRAM and NAND," the analyst wrote. These tight conditions are expected to continue beyond 2027 given AI demand trends, he further stated.

JPMorgan: Micron Technology's results and guidance came in "far ahead" of expectations, Sur said. What was more "meaningful" was the "substantial expansion" of the company's Strategic Customer Agreements (SCAs) from a single 5-year contract announced in the previous quarter to 16 agreements signed in the latest quarter, he stated.

This is a "step-change" that "fundamentally transforms" Micron's business model from a "cyclical commodity producer to multi-year contracted supplier with significant downside protection on both revenue and margins," the analyst wrote. The company is poised for a "meaningful capital return inflection" after December 9, 2026, which marks the two-year anniversary of CHIPS Act agreements, and has indicated a 100% return of excess cash to shareholders over time, he further stated.

Cantor Fitzgerald: Micron reported very strong results, against a robust AI compute demand environment, Muse said. The company had been facing a "very tight" DRAM and NAND supply environment, which supported meaningful price hikes, he added.

Management had already indicated that 2027 would be just as tight as 2026, the analyst stated. The new details provided indicate that the new SCAs come with upfront cash, price floors and ceilings, and represent around 40% of total revenues under long-term contract of five-year, he said.

Micron Price Action

Shares of Micron had risen by 12.37% to $ 1,177.50 at the time of publication on Thursday.

Europe Backs US–Iran Peace Deal As Energy Volatility Rises And Geopolitical Risks Deepen

Benzinga News — Thu, 25 Jun 2026 12:48:10 -0400

European nations have thrown their support behind the US-Iran peace deal, hoping it will end months of conflict that have disrupted energy markets and raised gas prices.

The UK, France, Germany, and Italy welcomed the deal as "a moment of opportunity to restore regional stability and stabilize the global economy." They tied their cooperation to strict conditions.

"We are prepared to lift relevant sanctions in response to clear, verifiable steps by Iran on its nuclear program," they said in a joint statement. "Iran must never acquire a nuclear weapon. We stand ready to work with the US, Iran, and the International Atomic Energy Agency (IAEA) to this end."

The four European countries urged the rapid implementation of the agreement and stressed reopening the Strait of Hormuz without restrictions. They want Gulf stability to protect growth and keep global energy flows moving without disruption.

The agreement lands at a moment when Europe's economic resilience is fraying and its geopolitical leverage is shrinking. The deal offers Europe a narrow window to stabilize energy markets. The region remains exposed to geopolitical shocks it cannot control - from Gulf chokepoints to US-Iran diplomacy.

War Hits Europe

Their support for the agreement reflects concerns about the economic impact of the conflict on the Eurozone. Inflation across the region rose for five consecutive months as energy costs became the main driver of price pressures.

"Staff now expect domestic demand to be weaker than they projected in March, as the war has dented confidence and higher energy costs are weighing on real incomes," European Central Bank President Christine Lagarde said at the Hearing of the Committee on Economic and Monetary Affairs of the European Parliament on June 22.

The Eurozone's economy shrank by 0.2% in the first quarter, according to EUROSTAT data. This marks the first contraction since Q4 2022 and the sharpest decline since mid-2020. Consumer confidence has moved lower for three straight months since February.

The S&P Global Flash Eurozone Composite PMI stayed below the 50.0 threshold in June, signaling continued contraction across the bloc. June's 49.5 reading marked a third straight monthly decline in Eurozone business activity, despite improving slightly from May's 48.5.

EU Turns to US, Russia for LNG

The conflict exposed Europe's economic vulnerability. Its energy security hinges on decisions made in Washington, Tehran, and Moscow, not Brussels

The disruption in liquified natural gas (LNG) supplies from the Gulf forced Europe to rely more heavily on alternative suppliers. Russian LNG imports rose 17% from January to May, highlighting the bloc's continued difficulty in fully disengaging from Moscow.

EU imports of US LNG rose 59% in 2025. They increased by a further 27% year-on-year in the first quarter of 2026, accounting for 57% of all LNG imports.

Analysts warn that without deeper structural reforms, Europe will remain vulnerable to external supply shocks for years.

Europe entered the "crisis heavily import-dependent," Irina Patrahau and Lucia van Geuns, analysts at The Hague Centre for Strategic Studies, wrote on June 11. "The crisis exposes the vulnerability of Europe's fuel system and shows the slow pace of structural measures to reduce risky dependencies. Europe has been here before, and that is precisely the problem."

Europe's Gas Import Costs

Europe entered the crisis poorly positioned for disruptions despite efforts at energy security. The International Energy Agency (IEA) labeled the Iran conflict "the largest supply disruption in the history of the global oil market."

Gas storage reached a four‑year low as LNG disruptions worsened Europe's supply situation. The EU's total gas bill ballooned 48% during the crisis. Average prices rose 31% from the start of the war.

"Inventories take a long time to be rebuilt," Andrei Covatariu, a nonresident senior fellow with the Atlantic Council's Global Energy Center, said. "Even after a peace deal, repairs could take months or years, keeping supply tight and prices elevated."

Peace Deal Details

US President Donald Trump and Iranian President Masoud Pezeshkian signed an agreement on June 17 aimed at ending the conflict.

The deal includes reopening the Strait, lifting sanctions, releasing frozen assets, and funding a major reconstruction package. It also creates a 60‑day window for nuclear talks and guarantees temporary toll‑free passage through the Strait.

The waterway's long‑term administration is to be negotiated separately with Oman and the Gulf states. Iran announced a renewed closure of the Strait of Hormuz on June 20. It cited alleged Israeli ceasefire violations in Lebanon and Washington's failure to implement key provisions of the agreement.

Nevertheless, US and Iranian officials began direct talks in Switzerland aimed at preserving the agreement. The episode highlighted the deal's fragility. The Lebanon clause is unenforceable without Israeli cooperation.

With energy security at stake, several European governments signaled readiness to help secure the Strait of Hormuz. France and Britain have been building a Hormuz escort coalition since March.

Europe Prepared to Help

The G7 in Évian centered on mine‑clearing operations. Trump told French President Emmanuel Macron, "I don't think it's a bad idea to have a ship or two up here from a few countries. You'd be a great country to do it."

Macron said he could deploy jets and frigates within days if requested by the US, Iran, and Oman. German Chancellor Friedrich Merz said his country had already sent mine-clearing vessels. Italian Prime Minister Giorgia Meloni backed security contributions but insisted on durable solutions in Lebanon.

The Gulf crisis demonstrated that Europe "is in a structurally familiar position," Patrahau and van Geuns wrote. The region is "heavily exposed, reacting with emergency measures, and reaching for the same toolkit of short-term subsidies and long-term promises for structural change."

The crisis underscored Europe's geopolitical weakness, exposing how little influence it has over the forces shaping regional stability and energy security. Whether the peace deal endures will determine global energy prices and Europe's relevance in a region where it increasingly reacts rather than shapes outcomes.

"Europe is sidelined," Nathalie Tocci, a Professor of Practice at Johns Hopkins University, said. "Regional players like Turkey, Saudi Arabia, Pakistan, and Egypt, but also other global actors like China, have become far more relevant."

Intel CEO's Other AI Bet Just Jumped To A $10 Billion Valuation

Benzinga News — Thu, 25 Jun 2026 12:43:57 -0400

Intel Corp. (INTC ) CEO Lip-Bu Tan's influence in the artificial intelligence chip race extends beyond the company he leads. According to The Information, AI chip startup SambaNova Systems is in talks to raise between $800 million and $1 billion at an implied valuation of around $10 billion, excluding the new capital. The valuation would represent a roughly fivefold jump from the company's previous funding round just four months ago, underscoring investors' growing appetite for AI chipmakers looking to challenge Nvidia Corp.'s (NVDA ) dominance.

Tan, who became Intel's CEO earlier this year, also serves as executive chairman of SambaNova. He disclosed the fundraising plans during an event on Tuesday, though people familiar with the matter said the company is targeting a valuation of roughly $10 billion.

Intel CEO's AI Ties Extend Beyond Intel

While Intel has been working to regain relevance in the AI accelerator market, Tan's continued role at SambaNova highlights his long-standing ties to the broader semiconductor ecosystem.

Founded in 2017, SambaNova develops AI server chips designed to compete with Nvidia's accelerators. Demand for alternative AI chips has accelerated as cloud providers and AI developers increasingly look for lower-cost options beyond Nvidia.

The fundraising suggests investors remain willing to assign premium valuations to companies that can carve out a niche in the rapidly expanding AI infrastructure market, even as competition intensifies.

What SambaNova's Funding Could Mean For Intel Investors

The fundraising does not directly benefit Intel, nor does it imply any ownership interest by the chipmaker. However, it offers another signal that investors continue to see significant opportunities beyond the current AI market leader.

For Intel investors, Tan's dual role provides a unique window into the evolving AI chip landscape. Before taking the helm at Intel, Tan built a reputation as one of Silicon Valley's most influential semiconductor investors, backing dozens of chip startups during his tenure at venture capital firm Walden International.

As Intel pushes to expand its AI offerings and compete more aggressively in data center accelerators, SambaNova's soaring valuation could be viewed as another indication that capital continues to flow toward companies developing alternatives to Nvidia's hardware.

Whether Intel can translate that broader industry momentum into gains for its own AI business remains one of the key questions investors will be watching.

Lockheed Martin's Mega Missile Deal Signals New Defense Supercycle

Benzinga News — Thu, 25 Jun 2026 12:43:51 -0400

Lockheed Martin Corp. (LMT ) just handed defense bulls a fresh catalyst, and the market may still be underpricing the ripple effects. On Wednesday, Lockheed announced it was awarded a seven-year undefinitized contract action (UCA) for up to $35 billion to quadruple production of Terminal High Altitude Area Defense (THAAD) interceptors.

The Pentagon's roughly $35 billion THAAD award is not just a headline number. It is a visibility machine, locking in years of revenue and reinforcing a sector-wide re-rating story.

Backlog and Cadence

Backlog is the first lever. Lockheed already operates with one of the deepest backlogs in industrials, and this deal adds another long-duration layer.

Backlog is forward revenue with a government guarantee, and multi-year procurement contracts compress uncertainty and expand confidence in earnings durability. That dynamic often supports higher multiples, especially when paired with geopolitical tailwinds.

The second lever is cadence. This is not a one-quarter spike. THAAD production stretches across years, creating a steady drumbeat of revenue recognition, margin capture and potential program expansions.

Each incremental funding tranche or upgrade cycle becomes a new catalyst. In other words, this is the kind of contract that keeps showing up in earnings beats.

Spillover to RTX, NOC

Spillover is where the trade broadens. RTX Corp. (RTX ) sits directly in the line of fire for follow-on demand, supplying critical sensors, radar, and missile components. Large system awards rarely stay contained, they cascade through the supply chain. That makes RTX Corp. a secondary beneficiary with less headline risk but meaningful upside leverage.

Northrop Grumman Corp. (NOC ) adds a different angle. Its exposure to advanced radar and space-based tracking ties into the next phase of missile defense evolution.

As the Pentagon pushes toward more integrated, layered systems for the Golden Dome Northrop Grumman becomes a strategic player in what could be the next leg of spending. That creates optionality, which markets tend to reward.

The bigger picture is momentum. Defense is shifting from episodic spending to sustained investment cycles, and the shift matters for positioning. Instead of trading around news, investors are increasingly holding for duration, betting on consistent budget flows and expanding program scope.

The Takeaway

A simple example: if Lockheed Martin converts this award into stable annual revenue over several years, it strengthens free cash flow visibility. That supports dividends, buybacks, and, importantly for traders, downside protection. Meanwhile, suppliers like RTX and Northrop layer in incremental growth without carrying full program execution risk.

Bottom line, this contract is a sector signal. Defense names are moving into a phase where backlog, visibility and geopolitical demand align-and that combination tends to keep capital flowing in.

LMT Stock Price Activity: Lockheed Martin stock was up 3.16% at $507.18 at the time of publication Thursday, according to data from Benzinga Pro.

Over the past month, LMT has declined about 5.4% versus a 2.1% decline in the S&P 500 and is up roughly 5% year-to-date compared to the index's 7.1% gain. The stock is trading within its 52-week range of $410.11 to $692.00.

Apple Just Confirmed Micron's Biggest AI Prediction

Benzinga News — Thu, 25 Jun 2026 12:43:46 -0400

Apple Inc. (AAPL ) has raised prices on several of its hardware products, citing an extraordinary surge in demand for memory and storage driven by the rapid expansion of AI data centers-a development that closely mirrors a warning Micron Technology Inc. (MU ) delivered just a day earlier. The price increases affect products including the MacBook Neo, MacBook Air, MacBook Pro, iPad Pro, iPad Air, HomePod, HomePod mini and Apple TV, while iPhone pricing remains unchanged. Apple attributed the increases to tightening supplies of memory and storage components as AI infrastructure spending accelerates.

For Micron investors, however, the announcement may represent something more significant: real-world evidence that the AI memory crunch the company has been warning about is beginning to ripple beyond data centers and into consumer electronics.

Micron CEO Warned Memory Shortages Would Persist

During its fiscal Q3 earnings call, Micron CEO Sanjay Mehrotra said the company still sees no clear end to tightening memory markets.

"We currently do not have line of sight as to when memory supply will be able to catch up with increasing demand," Mehrotra told investors. "We expect tight conditions to persist beyond calendar 2027."

The executive argued that artificial intelligence has fundamentally reshaped the memory industry, with AI systems requiring increasingly larger amounts of high-performance memory to support training and inference workloads.

"Memory has become a strategic asset," Mehrotra said, adding that AI system performance is "architecturally dependent on memory subsystem performance and capacity."

AI Data Centers Are Reshaping The Memory Market

The connection between Apple's pricing decision and Micron's outlook highlights how AI infrastructure spending is increasingly influencing markets far beyond semiconductors.

Cloud providers and AI developers have been aggressively expanding data center capacity to support generative AI applications, fueling demand for advanced DRAM and NAND memory. That demand has helped tighten industry supply, allowing memory manufacturers to secure stronger pricing and long-term customer agreements.

Micron recently disclosed that customers have committed approximately $22 billion through strategic agreements, providing additional visibility into future demand as the company ramps production of high-bandwidth memory used in AI accelerators.

If Apple's explanation proves to be an early indication of broader industry trends, the impact of AI-driven memory shortages may no longer be confined to hyperscale data centers. Instead, consumers purchasing everyday devices-from laptops and tablets to smart-home products-could increasingly feel the effects of a market Micron believes will remain supply-constrained for years.

For investors, Apple's price increases may be the clearest sign yet that Micron's AI memory thesis is beginning to play out beyond the walls of the world's largest data centers.

McCormick Says Healthy Eating Shift Is Creating New Growth Opportunities

Benzinga News — Thu, 25 Jun 2026 12:43:40 -0400

McCormick & Company Inc. (MKC ) stock rose more than 5% on Thursday after the spice and flavoring company reported second-quarter results that exceeded Wall Street expectations on both revenue and adjusted earnings. The company reported second-quarter net sales of $1.937 billion, up 16.7% from a year earlier and above the consensus estimate of $1.912 billion.

Adjusted earnings came in at 80 cents per share, topping analysts' expectations of 69 cents. GAAP diluted earnings were 56 cents per share, down from 65 cents a year earlier.

Sales Growth And Margin Expansion

Net sales benefited from a 2.7% favorable currency impact, while the acquisition of McCormick de Mexico contributed 12 percentage points to sales growth. Organic sales increased 1.7%, driven by pricing.

Operating income rose to $276.4 million from $245.8 million a year earlier. Adjusted operating income increased 30.1% to $336.4 million, while adjusted operating margin expanded 180 basis points to 17.4%.

Gross profit margin improved 270 basis points to 40.2%, supported by the McCormick de Mexico acquisition, pricing actions, cost savings and a $28 million IEEPA tariff refund, which contributed about 140 basis points to margin expansion. Higher commodity costs and expenses related to the Middle East conflict partially offset those gains.

Segment Performance

Consumer segment net sales climbed 23% to $1.143 billion, helped by a 20% contribution from McCormick de Mexico and a 2% currency benefit. Organic sales increased 1% as higher pricing offset weaker volume and product mix. Adjusted operating income for the segment rose 33% to $217 million.

Flavor Solutions posted net sales of $794 million, up 9% from a year earlier. Results included a 3% currency benefit and a 3% contribution from McCormick de Mexico. Organic sales rose 3%, driven by pricing and higher volume and product mix. Adjusted operating income increased 26% to $120 million.

Cash Flow And Outlook

Operating cash flow totaled $430.7 million during the first six months of the fiscal year. As of May 31, cash and cash equivalents stood at $331.2 million. Short-term borrowings and current long-term debt totaled $1.34 billion, while long-term debt was $3.60 billion.

McCormick affirmed its fiscal 2026 adjusted earnings guidance of $3.05 to $3.13 per share, compared with analysts' estimate of $3.09. The company also maintained its sales outlook of $7.73 billion to $8.00 billion, versus the consensus estimate of $7.88 billion.

CEO Brendan M. Foley said, "Looking ahead to the rest of the year, we expect to sustain the momentum in Flavor Solutions and increase reinvestment to improve Consumer volume trends and organic sales."

During the earnings call, management said near-term profit growth will be pressured by ERP-related technology spending, higher incentive compensation and increased brand marketing investment.

The company added that cost inflation is tracking near the high end of its mid-single-digit outlook, at about 6%, primarily because of the Middle East conflict. Management expects most of the tariff refund to offset those higher costs.

Executives also said Consumer volumes should improve sequentially in the third quarter and return to growth in the fourth quarter. Flavor Solutions continues to benefit from faster-than-expected customer reformulation activity and growing demand for health-and-wellness products.

McCormick said changing consumer preferences toward healthier eating are creating new growth opportunities across its Flavor Solutions business.

The company pointed to strong innovation activity in protein, sports nutrition, beverages and better-for-you products, while noting that health and wellness initiatives now account for a majority of customer project briefs.

Management also said reformulation projects are increasing as food manufacturers adapt products to meet evolving consumer demand.

MKC Price Action: McCormick shares were up 5.63% at $50.23 at the time of publication on Thursday, according to Benzinga Pro data.

Hyperscale Data Stock Pulls Back After Rally Sparked By AI Data Center Deal

Benzinga News — Thu, 25 Jun 2026 12:43:33 -0400

Hyperscale Data, Inc. (GPUS ) shares fell on Thursday, reversing momentum from a positive rally following the company's announcement of a major AI data center services agreement. The company said Thursday that it held approximately $94.8 million in cash, restricted cash, Bitcoin and silver as of June 24, 2026.

AI Data Center Agreement Announced Wednesday

Hyperscale Data announced on Wednesday that its subsidiary, Alliance Cloud Services, signed a master services agreement with a California-based neocloud provider for colocation and data center services at its Michigan campus.

The deal covers 20 megawatts of AI compute capacity expected to come online in the fourth quarter of 2026, with an option to expand to 52 megawatts.

Hyperscale Data expects the agreement to generate more than $1.2 billion over the full term. Revenue could exceed $3 billion if the customer exercises the additional 32-megawatt option and extensions.

Balance Sheet and Campus Transition

Hyperscale Data also said it held approximately $94.8 million in cash, restricted cash, Bitcoin and silver as of June 24, 2026, equal to 100.42% of the market capitalization of its class A common stock at that day's close.

The company expects to spend $100 million to $120 million to retrofit about 60,000 square feet at its Michigan campus for the initial 20-megawatt deployment.

The campus could eventually support more than 300 megawatts, subject to approvals, financing and infrastructure.

"We are extremely confident in the Company's position after the announcement of the signing of a Master Services Agreement ("MSA") worth approximately $1.2 billion, presuming exercise of the two five-year extensions, but before any exercise of options for additional power capacity," commented Executive Chairman Milton "Todd" Ault III.

"We strongly believe that the value we are creating for stockholders, including the recurring monthly revenue from the MSA, is not being properly recognized and no value is being ascribed to this transformational event for the company."

GPUS Technical Outlook: Key Moving Averages and Momentum

The stock is currently trading about 16.4% below its 20-day simple moving average of 22 cents, signaling recent weakness. However, it remains slightly above its 50-day SMA of 17 cents, suggesting that level may be acting as near-term support.

Momentum remains neutral, with the Relative Strength Index at 45.83, indicating the stock is neither overbought nor oversold.

The moving averages show a mixed technical setup. While the 20-day SMA remains above the 50-day SMA, suggesting some short-term strength, the 50-day SMA remains below the 200-day SMA, indicating the broader trend remains bearish.

Overall, the setup suggests limited near-term support, but the longer-term trend remains under pressure.

GPUS Stock Price Activity: Hyperscale Data shares were down 7.98% at 17 cents at the time of publication on Thursday, according to Benzinga Pro data.

Google Finance Exits Beta, Launches Portfolios, AI Tools, New Dedicated Android App

Benzinga News — Thu, 25 Jun 2026 12:26:50 -0400

Alphabet Inc's (GOOGL ) (GOOG ) Google announced on Thursday that Google Finance is introducing three major upgrades, including a new app, and is officially coming out of beta following a testing period that began in August 2025. All of these updates, along with the new mobile application, will be available to users globally.

Consolidated Dashboards and Interactive Market Intelligence

Portfolios are coming to the new Google Finance experience. Users can see all their investments consolidated in a single dashboard, with performance data and insights on asset allocation, the company said in its blog.

The platform automatically migrates existing portfolios from the classic experience, though users can also create new portfolios by uploading screenshots, CSVs, or PDFs.

Alternatively, users can describe their investments to get started and build from there.

An integrated AI research tool allows users to dive deeper by asking specific questions about their portfolios.

Google Finance also introduces a new way to stay up to date on market intel. Users can describe a task, such as asking the system to "send me a daily premarket briefing on X topic," to receive timely updates.

Google Finance then runs in the background to gather the necessary information and deliver a custom briefing on the user's preferred schedule, sending notifications via the Google app or the web experience.

Dedicated Mobile Applications for Android and iOS

Google is launching a new Google Finance app for Android to provide a dedicated place where users can easily access their watchlists, real-time data, a live financial news feed, and the AI research tool.

Over the coming months, Google will bring more capabilities from the web experience into the mobile app, including the new portfolio and task features.

Furthermore, Google plans to release a Google Finance app on Apple Inc (AAPL ) iOS later this year.

Background

In April 2026, Google announced that it was expanding its AI-powered Google Finance platform to more than 100 countries, with local-language support to help users follow markets more easily.

The redesigned tool lets users ask market and stock questions, view AI-generated answers, use upgraded charts, and track news, commodities, and cryptocurrencies.

In August 2025, Google said it was testing a new AI-powered Google Finance experience in the U.S., with an option to switch between the new and classic designs. The update lets users ask detailed finance questions, use advanced charts, track more market data and follow real-time news headlines.

Price Action: GOOG shares were down 1.21% at $340.85, GOOGL shares were down 1.20% at $341.15 at the time of publication on Thursday, according to Benzinga Pro data.

Micron Is Spending Billions On New Fabs—And Still Says It'll Return 100% Of Excess Cash To Shareholders

Benzinga News — Thu, 25 Jun 2026 12:26:31 -0400

Micron Technology Inc. (MU ) is preparing for one of the largest manufacturing expansion programs in its history, but management says the spending spree won't come at the expense of shareholder returns. During its fiscal third-quarter earnings call, the memory-chip maker outlined plans to ramp capital expenditures further in fiscal 2027 even as it pledged to return all excess cash to investors-a signal that executives believe the AI-driven memory boom has fundamentally strengthened the company's cash-generating ability.

Micron's AI Investment Plans Continue To Ramp

Micron expects fiscal fourth-quarter capital expenditures of around $10 billion, bringing total fiscal 2026 capital spending to approximately $27 billion. The investment pace isn't expected to slow anytime soon.

Chief Financial Officer Mark Murphy said the company expects quarterly capital expenditures in fiscal 2027 to exceed fiscal fourth-quarter levels as Micron accelerates construction of new clean-room capacity to meet long-term AI demand.

"We expect quarterly CAPEX in fiscal 2027 to be above fiscal Q4 levels," Murphy said, adding that more than half of the increase next year will come from construction spending as the company expands manufacturing capacity.

The investments include leading-edge DRAM fabs in Idaho and New York, continued expansion in Taiwan and Singapore, and additional advanced packaging capacity aimed at supporting next-generation high-bandwidth memory (HBM) products that power AI servers.

Shareholder Returns Remain A Priority

Despite those multibillion-dollar investments, Micron isn't backing away from returning cash to shareholders.

Murphy said that beginning Dec. 9, 2026-the second anniversary of the company's definitive CHIPS Act agreements-Micron plans to increase capital returns over time. "We expect to return 100% of our excess cash to shareholders," Murphy said.

The commitment comes as Micron's financial position continues to strengthen. The company ended the quarter with a record $30.2 billion in cash and investments, a net cash balance of $24.4 billion, and generated a record $18.3 billion in quarterly free cash flow. Murphy also said Micron expects free cash flow to "increase substantially again" in fiscal fourth quarter.

Why Micron Believes It Can Do Both

Investors may question whether aggressive shareholder returns can coexist with one of the industry's largest capacity expansion programs. Management argued the company's balance sheet and long-term customer commitments provide that flexibility.

"Our balance sheet has never been stronger, and we project it to strengthen further even as we increase investment in technology and needed capacity," Murphy said.

That confidence is also backed by Micron's recently announced strategic customer agreements, which provide long-term demand visibility and support the company's plans to invest aggressively in manufacturing while maintaining an increasingly shareholder-friendly capital allocation strategy.

Crypto May Get Direct Access To The Fed's Payment System—But That's Not Necessarily Bullish

Benzinga News — Thu, 25 Jun 2026 12:26:25 -0400

The House Financial Services Committee on Wednesday debated whether crypto and fintech firms should get direct access to the Federal Reserve's payment system through so-called skinny master accounts.

What A Skinny Master Account Actually Unlocks

Fed Governor Christopher Waller floated the skinny master account concept back in October.

A full master account gives an institution direct access to the Fed's payment infrastructure, the deepest connection to the US money supply any financial firm can get.

Crypto companies currently lack that access entirely, forcing them to route everything through partner banks that already hold one, adding cost and delay to every transaction.

Rep. Dan Meuser (R-NY) framed the stakes bluntly during the hearing. "Access to the Federal Reserve payment system is not a small issue," he said, pushing the committee to determine exactly who should be allowed that level of access to critical payment rails.

Dozens of organizations have already submitted comment letters on the proposal. Crypto firms say regulators should have introduced it sooner, while community banks argue regulators do not hold newer players to the same compliance standards as traditional banks.

Two Regulatory Moves Already Pushed This Forward

President Trump signed an executive order in May directing the Fed to formally review its policies on granting fintech and crypto firms direct payment rail access.

That order followed a separate move in March, when the Kansas City Fed approved a limited-purpose account for Payward, the parent company of Kraken, a decision that already sparked debate over how far this access should extend before Wednesday's hearing even happened.

Anchorage Digital, the first federally chartered crypto bank, pushed for more regulatory clarity rather than less.

Head of Global Operations Rachel Anderika told the committee that keeping America as the world's financial capital requires frameworks, both federal and state, that actually make room for innovation rather than blocking it by default.

Volatility And Synapse's Collapse Are The Counterargument

Rep. Stephen Lynch (D-Mass.) pointed directly at Bitcoin's swing from above $100,000 a year ago to as low as $59,000 Wednesday as evidence the financial system isn't ready to safely absorb that kind of volatility through bank-like payment access.

He cited Synapse's 2024 bankruptcy, where customers lost millions in funds held on fintech platforms, as the cautionary case Congress needs to study before granting any crypto firm reserve-account-level powers.

Musk's Optimus Has Picked A Fight With Manufacturing Superstar China: Can It Win?

Benzinga News — Thu, 25 Jun 2026 12:26:19 -0400

Elon Musk has called Optimus the most important product Tesla Inc. (TSLA ) will ever build, and the company is backing that with hard capacity.

Tesla confirmed on its January earnings call it is killing the Model S and Model X to convert Fremont into an Optimus line targeting 1 million robots a year.

The problem for Tesla is that while it is tearing down legacy auto lines to build an Optimus supply chain from scratch, China is already running at full speed.

The Manufacturing Gap Is Already Open

China shipped around 90% of the world's humanoid robots last year, and Morgan Stanley just doubled its 2026 forecast for Chinese shipments to roughly 50,000 units.

Beijing has earmarked a Rmb1 trillion 20-year fund for "new productive forces" and ordered local governments and state-owned enterprises to install at least 10,000 AI-powered robots in commercial settings this year.

China also doubled its industrial robot base to 2 million units between 2021 and 2024.

China's working-age population peaked at 1 billion last decade and is projected to fall to 300 million by 2100, a drop that is likely to make labor-replacing automation a national priority.

Shenzhen Speed

China has already proven it can out-manufacture the rest of the world. BYD overtook Tesla in global EV deliveries in 2025 and is outselling Tesla across most Asian and Latin American markets, even pulling ahead in Europe despite EU tariffs.

The same hardware stack, including the precision motors, lidar and batteries scaled up for cars and phones, is now feeding the humanoid build.

Unitree's $16,000 G1 came to market on the back of that supply chain and already undercuts Musk's $20,000 Optimus target. "Because it is a completely new supply chain, there's really nothing from the existing supply chain that exists in Optimus," Musk said on the January earnings call.

Tesla Is Not Standing Still

The Optimus Gen 3 units now rolling out inside Tesla factories carry 22 degrees of freedom in the hands powered by 50 actuators, a 4.5x dexterity upgrade over Gen 2.

Tesla is using Fremont and Giga Texas as a vertically integrated beta environment, while Chinese rivals including AGIBOT and Unitree are already selling and renting humanoids to commercial customers, with Unitree's G1 deployed at BYD, Geely and NIO.

Polymarket gives Tesla just a 14% chance of releasing a consumer Optimus to the public this year.

For all the capital flowing into the sector, no manufacturer has yet shipped a humanoid robot doing productive work at scale.

Fed's Favorite Inflation Gauge Hits 3-Year High, Fueling Rate-Hike Bets

Benzinga News — Thu, 25 Jun 2026 12:26:02 -0400

The Federal Reserve's preferred inflation gauge climbed again in May as the energy shock continued to filter through the broader consumer basket, the Bureau of Economic Analysis reported Thursday.

The headline Personal Consumption Expenditure price index rose 0.4% on the month, missing the 0.5% expected after April's 0.4% gain.

From a year earlier, it quickened from 3.8% to 4.1%, matching the 4.1% forecast and marking the highest reading since April 2023.

Core PCE, which strips out food and energy, rose 0.3% on the month, matching both the previous and expected 0.3%.-

The annual rate inched up from 3.3% to 3.4%, matching estimates.

The report marks the third straight uncomfortable inflation print to land on the desk of new Fed Chair Kevin Warsh, bolstering investor bets on interest-rate increases.

Money markets now price a near-certain 25-basis-point hike in the fed funds rate by October 2026, with a second increase expected by March 2027.

Inflation Rises But US Consumers Keep Spending

The May Personal Income and Outlays report pointed to resilient consumers.

Personal income rose 0.7% on the month - its strongest gain since July 2025 and well above the 0.4% consensus - while personal spending also climbed 0.7%, or $156.1 billion, beating estimates of 0.6% and accelerating from a downwardly revised 0.4% in April.

The spending gain was broad-based, with outlays rising $94.3 billion on services and $61.8 billion on goods. Adjusted for inflation, real consumer spending increased 0.3% in May after a flat reading in April.

The strength in demand, set against a 0.4% rise in prices, suggests households are still spending even as the cost of living keeps climbing.

A Stronger Q1 GDP Print

In a separate release, the BEA's third estimate showed the US economy grew at a 2.1% annualized rate in the first quarter, revised up from the 1.6% second estimate and a sharp acceleration from 0.5% in the fourth quarter of 2025.

The upgrade, however, was not driven by stronger domestic demand. It reflected almost entirely a downward revision to imports - which subtract from GDP - partly offset by a downward revision to consumer spending.

Final first-quarter real consumer spending was cut to 0.5% from prior estimates, and real final sales to private domestic purchasers, a cleaner gauge of underlying demand, was revised down to 1.7%.

The GDP report's quarterly inflation gauges underscored the price pressure: the PCE price index rose 4.6% in Q1 and the core measure 4.4%. Corporate profits from current production increased $74.4 billion, revised up $34 billion.

Market Reaction: Relief Across The Board

Equities pushed higher after the in-line inflation data.

Futures on the S&P 500 were up 0.2% to 7,450 points, while contracts on the Nasdaq 100 rose 0.4%

Small caps led the move, with the iShares Russell 2000 ETF (IWM ) up around 0.5% in the premarket as the rate-sensitive corner of the market cheered the expected print.

The Treasury market did the heavy lifting. The policy-sensitive 2-year yield fell about 5 basis points to 4.10%, as traders trimmed bets on a near-term hike.

The dollar slipped from the one-year high it reached earlier in the session, with the US Dollar Index easing back toward 101.27.

Gold rebounded above $4,000 an ounce, rising about 0.5% after a brutal stretch that had dragged bullion to an eight-month low.

Crude oil remained under heavy pressure, with West Texas Intermediate trading below $70 a barrel as the reopening of the Strait of Hormuz unwound the war-risk premium that had driven prices higher during the Iran conflict.

Qualcomm Stock Soars On 2029 Guidance, Data Center Revenue To Hit $15 Billion

Benzinga News — Thu, 25 Jun 2026 12:25:54 -0400

Qualcomm Inc (QCOM ) stock soared on Wednesday as the company shared new details about its diversification efforts beyond handsets in an Investor Day presentation. Here are the company's updates, including a new partnership with Meta Platforms (META ). Qualcomm's New Chapter

On Wednesday, Qualcomm outlined its new diversification efforts with a key data center strategy. The new growth strategy adds to efforts with AI devices, automobiles, and robotics, in an effort to lower its reliance on handset revenue.

"It's time to start a new chapter at Qualcomm," Qualcomm CEO Cristiano Amon told the crowd at the 2026 Investor Day. "We've built a diversified edge leader across multiple end markets."

Amon said the company is building a data center platform, providing a "comprehensive portfolio of solutions." Perhaps minimizing the noise of Qualcomm being late to the data center sector, Amon said, there's still a big opportunity.

"It's never too late for Qualcomm. This is a market that moves very, very fast. If you have technology leadership, there's room for you."

Amon said Qualcomm will be a full-stack player across physical AI, compute and more.

"At the end of the day, we have seen in our industry, open horizontal systems will win. And I think that's kind of our bet."

Tony Pialis, EVP & GM Data Center at Qualcomm, said the company has won two major hyperscaler deals that will bring in "meaningful revenue" starting at the end of this year.

"This is a race to the forefront and we have the technology pieces needed to win," Pialis said.

Qualcomm Chief Financial Officer Akash Palkhiwala said the third transformation for the company starts now, going from a devices company to a device and cloud company.

"We went from being a smartphone company to all edge devices - auto, personal AI, networking, industrial, PC - all of these devices we are a leader in now," Palkhiwala said.

Meta Partnership

A new strategic partnership for Data Center CPUs between Qualcomm and Meta was announced Wednesday. Meta Platforms CEO Mark Zuckerberg highlighted the partnership with a video presentation at the event.

Qualcomm's data center CPU, the Qualcomm Dragonfly C1000, will power Meta's next-generation server fleet, according to the companies.

The company's products will be in production in the second half of 2028 and used in future data center capacity expansions by Meta.

"We designed our data center CPU to deliver leading performance per core and breakthrough in power efficiency for large scale data center deployments, and this multi-generation agreement with Meta is a significant validation of that approach," Amon said.

In the video presentation, Zuckerberg said Meta's goal is to "deliver personal superintelligence to everyone in the world."

"We need to innovate with how we get the power, we need to scale it, and make it accessible to everyone. So that's why our work with Qualcomm is so critical," Zuckerberg said.

Zuckerberg said the partnership will "help put personal superintelligence into billions of people's hands."

"There's a lot more to come and I'm looking forward to building together for a long time."

Qualcomm's Updated Guidance

At the investor day, the company provided an updated look at its 2029 guidance. This includes having non-handset revenue of $40 billion or more by fiscal 2029, broken down as follows:

Automotive revenue: $10 billion
IoT revenues: $14 billion or more
Industrial, networking and robotics: $8 billion
Personal AI and Compute: $6 billion
Data Center revenues: $15 billion or more

The new guidance makes handsets around one-third of QCT revenue by fiscal 2029.

Palkhiwala said automotive, IoT and data center represent a total addressable market size of $1.7 trillion for the company.

"As we diversify more, as we launch new products, a very large portion of this becomes addressable to us," Palkhiwala said.

Qualcomm Stock Price Action

Qualcomm shares are up 3.50%, trading at $204.32 on Thursday, versus a 52-week trading range of $121.99 to $259.92. Qualcomm stock is up 20.4% year-to-date in 2026.

JPMorgan Stock Hits All-Time High After $50 Billion Buyback, Dividend Boost

Benzinga News — Thu, 25 Jun 2026 12:24:23 -0400

JPMorgan Chase & Co (JPM ) shares are climbing on Thursday, hitting a new all-time high, as investors digest a dividend hike and a new buyback authorization.What Is Driving JPMorgan's Dividend Hike and Buyback?

JPMorgan's board plans to raise the quarterly common dividend to $1.65 per share in the third quarter from $1.50, and it authorized a new $50 billion share repurchase program effective July 1. CEO Jamie Dimon framed the move as enabled by excess capital and liquidity, positioning the bank to keep returning cash while staying a "pillar of strength."

The capital-return message lands as JPMorgan manages operational and regulatory friction in other parts of the business, including a reported decision to remove Anthropic's Claude models from an internal approved list for Hong Kong staff after export-control pressure restricted access to "Fable 5" and "Mythos 5," as cut off Hong Kong access.

That juxtaposition can matter for sentiment: investors are rewarding balance-sheet confidence even as compliance and AI-governance constraints tighten.

JPM Stock: Critical Levels To Watch

JPM is extended above its trend gauges, trading 7.6% above the 20-day SMA ($316.67) and 10.7% above the 200-day SMA ($307.84), which keeps the longer-term uptrend intact but raises the odds of near-term digestion. The golden cross in June (50-day SMA above the 200-day SMA) reinforces that the intermediate trend has flipped back to bullish after the death cross in March.

Momentum is getting stretched: RSI is 70.32, which signals the recent run is overbought and can be prone to pullbacks or sideways consolidation even if the bigger trend stays up. With price pressing the upper end of the 52-week range, bulls typically want to see the stock hold above the rising short-term averages on any dip to keep the breakout attempt "clean."

Key Support: $293.50 - a nearby level where buyers previously stepped in, sitting above the $279.10 52-week low zone and below the current trend stack.

What Is JPMorgan Chase's Business Model?

JPMorgan is a leading global financial services firm with operations in 66 countries and over 318,000 employees as of year-end 2025. Under the JPMorgan brands, the bank holding company runs a $4.9 trillion balance sheet and held $2.68 trillion in deposits as of March 2026.

The firm earns revenue across consumer and community banking, the commercial and investment bank, and asset and wealth management, which helps smooth results across cycles. That scale matters for today's catalyst because dividend increases and buybacks are ultimately a statement about capital strength and management's confidence in the bank's ability to keep compounding shareholder returns.

JPM Earnings Preview: What Analysts Expect for July 2026

Looking further out, the next major catalyst for the stock arrives with the July 14, 2026 (confirmed) earnings report.

EPS Estimate: $5.42 (Up from $4.96 YoY)
Revenue Estimate: $48.61 Billion (Up from $45.68 Billion YoY)
Valuation: P/E of 16.0x (Suggests fair valuation relative to peers)

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price target of $343.88. Recent analyst moves include:

Evercore ISI Group: Outperform (Raises Target to $340.00) (April 17)
Jefferies: Hold (Raises Target to $320.00) (April 15)
Truist Securities: Hold (Raises Target to $332.00) (April 15)

JPMorgan Chase's Benzinga Edge Rankings Explained

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

Momentum: Neutral (Score: 56.11) - The trend is constructive, but the move is getting stretched near the top of its 52-week range.
Quality: Weak (Score: 21.07) - The scorecard flags below-average quality characteristics versus the broader market, despite the bank's scale.
Growth: Strong (Score: 75.83) - The setup screens as growth-tilted, which can support premium pricing when the tape is risk-on.

The Verdict: JPMorgan Chase &'s Benzinga Edge signal reveals a growth-leaning profile with moderate momentum, but a weak quality score that can matter if the market rotates toward defensiveness. For longer-term bulls, the key is whether the stock can consolidate near highs without losing the rising moving-average structure.

JPM Stock Price Action: Current Trends

JPM Stock Price Activity: JPMorgan Chase shares were up 1.73% at $339.21 at the time of publication on Thursday, according to Benzinga Pro data.

Microsoft’s Worst Month Since 2000: Why Is This Happening?

Benzinga News — Thu, 25 Jun 2026 12:24:17 -0400

Shares of Microsoft Corp. (MSFT ) are down over 20% in June, on pace for the steepest monthly drop since December 2000.

Twelve months ago, the Redmond, Washington-based company's market cap hovered around $4 trillion. Today, it's at $2.65 trillion, behind Nvidia Corp. (NVDA ), Apple Inc. (AAPL ) and Alphabet Inc. (GOOG ) (GOOGL ).

Yet the business is thriving.

Revenue has grown between 16% and 18% year over year for eight consecutive quarters. Earnings have topped Wall Street estimates every single time and have also been on the rise.

So why is the stock down more than 35% since the start of 2026?

The answer is one word: capex.

Why The Market Stopped Caring What Microsoft Earns Today

Capex - capital expenditure - is the money a company spends on physical infrastructure.

For Microsoft, that means data centers for artificial intelligence. That line of spending, not revenue, is now driving the stock.

Capital spending hit $38 billion last quarter. Bank of America estimates Microsoft's 2026 capex will approach $190 billion in 2026.

Microsoft is not alone. The five largest hyperscalers - Amazon.com Inc. (AMZN ), Microsoft, Alphabet, Meta Platforms Inc. (META ) and Oracle Corp. (ORCL ) - are projected to spend over $700 billion in 2026.

The buildout feeds itself. More data centers strain chip and memory supply.

Prices rise. Spending climbs again.

The Chain That Turns Microsoft Into A Falling Stock

Capex up means margins under pressure, which means free cash flow down. Microsoft's capital spending rose 63% year over year. Free cash flow fell 10%.

Less free cash means fewer buybacks and smaller dividends - the two things that reward shareholders.

Bank of America frames it starkly. Hyperscaler capex has climbed from 70% of operating cash flow in 2025 to nearly 100% in 2026.

Translation: almost no free dollars left for shareholders.

There is another side to the trade. Since January, the semiconductor sector - as tracked by the iShares Semiconductor ETF (SOXX ) - has surged 94%. The Magnificent Seven, tracked by the Roundhill Magnificent Seven ETF (MAGS ), are down about 6%.

Jeff Bezos once said, "Your margin is my opportunity."

In 2026, that idea has taken on a new meaning.

Every billion that hyperscalers divert away from their own margins is flowing to the companies building the AI stack: memory, semiconductors, cooling systems, optical networking, batteries, power infrastructure, everything required to build AI data centers and train increasingly powerful models.

The market is no longer valuing Microsoft for what it earns today. It's valuing the enormous cost of what it must build tomorrow.

Is Microsoft investing in the future or sacrificing the present to get there?

Right now, investors seem to believe it's the latter.

Apple Stock In the Spotlight After Reportedly Raising Mac, iPad Prices — Tim Cook Calls It a 'Hundred-Year Flood'

Benzinga News — Thu, 25 Jun 2026 12:20:05 -0400

Apple Inc. (AAPL ) shares are in the spotlight Thursday after reports emerged that the company has raised prices on several Mac and iPad products, passing higher memory and storage costs on to consumers for the first time.The Price Increases

According to CNBC, Apple raised prices across several key products Thursday morning, with its online store briefly going down before updating with the new pricing. The reported changes include the MacBook Neo entry model rising from $599 to $699, the MacBook Air 512GB from $1,099 to $1,299, the MacBook Pro 1TB from $1,699 to $1,999, the iPad Air 128GB from $599 to $749, and the iPad Pro WiFi 256GB from $999 to $1,199.

"The consumer electronics industry is facing an unprecedented challenge," Apple said in a statement. "The rapid expansion of AI data centers has created an extraordinary surge in demand for memory and storage. We have never seen a component price increase this much, this quickly." The company added it has "reached a point where we need to begin raising prices on a number of products," leaving the door open to further increases.

The Memory Crisis

The price hikes reflect a broader supply crunch that has upended the component market. Memory and storage prices have quadrupled in the past three quarters, according to Counterpoint Research, as suppliers steer more production toward the high-bandwidth memory used in AI servers. CEO Tim Cook told the Wall Street Journal last week that the situation was unavoidable. "This is a hundred-year flood," Cook said. "I've never seen anything like it in any area in over 40 years."

The crisis has been a massive windfall for memory suppliers-Micron just reported a quadrupling in revenue with gross margins jumping from 39% a year ago to 84.9%, surpassing both Nvidia and Meta.

What Comes Next

Analysts expect more price increases across Apple's lineup. Counterpoint Research's Tarun Pathak estimates higher component costs could add roughly $200 per iPhone, with price increases of $150 to $200 expected across the lineup. IDC expects all new iPhone models to move to 12GB of RAM as Apple looks to ensure full Apple Intelligence compatibility-giving the company a way to frame higher prices around more capable hardware rather than simply passing along inflation. IDC sees Apple's average selling price rising 12% this year, helped by a richer product mix and the expected launch of a foldable iPhone.

Apple Shares Edge Lower

AAPL Price Action: At the time of publication, Apple shares are trading 4.65% lower at $279.46, according to data from Benzinga Pro.

IBM Unveils Record-Breaking Chip Technology

Benzinga News — Thu, 25 Jun 2026 12:19:59 -0400

International Business Machines Corp. (IBM ) on Thursday unveiled what it said is the world's first sub-1-nanometer chip technology, introducing a new three-dimensional "nanostack" transistor architecture designed to extend semiconductor scaling beyond current manufacturing limits. IBM said the 0.7-nanometer chip packs nearly 100 billion transistors onto a fingernail-sized chip, nearly doubling the density of its 2-nanometer chip introduced in 2021.

The company said the technology could deliver up to 50% higher performance or 70% greater energy efficiency than its 2-nanometer chips, with potential applications in AI, cloud computing, and next-generation electronics.

The company expects the earliest commercial adoption of the technology within the next five years.

IBM Stock Performance And Technical Analysis

IBM stock is trading lower on Thursday. The Nasdaq is down 0.69% while the S&P 500 has shed 0.46%.

The stock is trading 2.7% above its 50-day simple moving average of $252.38 and 2.5% above its 100-day SMA of $252.98. However, the stock remains 6.9% below its 20-day SMA of $278.54 and 5.3% below its 200-day SMA of $273.66.

The stock's relative strength index stands at 46.88, indicating neutral momentum. That suggests buying and selling pressure remains balanced, with neither bulls nor bears in clear control.

The 20-day SMA remains above the 50-day SMA, a constructive short-term signal. However, the 50-day SMA continues to trade below the 200-day SMA, leaving the longer-term trend under pressure. IBM has largely traded in a consolidation range between its May low and June high.

Key resistance is near $260.50, while support is around $212.50.

Earnings And Analyst Outlook

The company's next major catalyst is its scheduled July 22 earnings report. Analysts expect earnings of $3.01 per share on revenue of $17.86 billion, up from $2.80 per share and $16.98 billion, respectively, a year earlier.

The stock carries a consensus Buy rating with an average price forecast of $301.07. Recent analyst actions include JPMorgan upgrading IBM to Overweight with a $291 price forecast, Morgan Stanley raising its Equal-Weight price forecast to $267, and Citigroup maintaining its Buy rating while lifting its price forecast to $375.

IBM Stock Price Activity: IBM shares were down 0.40% at $261.92 at the time of publication on Thursday, according to Benzinga Pro data.

A $24,950 Electric Pickup Truck? Bezos-Backed Company Ready To Take On Tesla

Benzinga News — Thu, 25 Jun 2026 12:19:31 -0400

Slate Auto, backed by Amazon.com founder Jeff Bezos, could have the secret formula to making disruption in the pickup truck market that includes Tesla Inc (TSLA ), Rivian Automotive (RIVN ), General Motors Co (GM ) and Ford Motor Co (F ). The secret could be cost. Here's how Slate Auto is solving the key issue.

Slate Auto Unveils Pricing

Originally planning to launch a bare-bones electric pickup truck for under $20,000, the ending of the $7,500 federal EV tax credit put that pricing plan from Slate Auto into question.

On Wednesday, the company unveiled its Slate Truck, which will come with an initial starting price point of $24,950 with units expected to ship in late 2026.

Labeled "the most affordable truck in America" and with phrases like "get it how you want," the basic truck will come with key features with consumers having to pay for some extra features and amenities.

Among the included features are:

Heat and A/C
Latch systems
Airbags
Backup camera
Keyless entry
Locking frunk
NACS charger

The company said that more than 200 accessories can be added, with 80% of them priced under $500. One of the more expensive add-ons is the conversion kit, which costs $5,000. That kit can take the two-seat pickup truck into a five-seat SUV and back again.

The Slate Truck has an estimated 205-mile range.

There is a non-refundable deposit of $300 for the truck, with customization needed to complete the order. The company previously had more than 180,000 reservations based on a $50 refundable deposit, a number it now hopes to turn into real orders.

Slate is building the Slate Truck in Warsaw, Indiana, at a plant that could have annual production capacity of 150,000 units.

The company said Wednesday that vehicles can be picked up or delivered once they are completed.

Can Slate Auto Succeed?

The new pickup truck will take on legacy automakers like Ford and GM, with Ford often dominating the pickup market with the F-Series. Ford previously launched the electric F-150 Lightning, which became a bestseller before Ford put the vehicle on hold.

Electric vehicle companies such as Tesla and Rivian have also launched the Cybertruck and R1T, respectively, but with significantly higher starting price points than Slate Auto.

Slate Auto has raised significant capital and is backed by the likes of Bezos and Los Angeles Dodgers owner Mark Walter.

While many automakers outside of Tesla have sold their vehicles at a loss and been unprofitable, Slate Auto is focused on prices and margins from the start, surprisingly enough with their low-cost model.

Slate CEO Peter Faricy told CNBC that every Slate Truck produced will be gross margin positive. The CEO said the company aims to have positive free cash flow and EBITDA by 2027.

"It's an ambitious goal," Faricy told CNBC. "No other automotive company has been able to do that before. So it's ambitious."

A focus on margins and profitability could put Slate Auto in better shape from the start as other electric vehicle companies like Lordstown Motors, Fisker, Lucid Motors and Rivian have struggled with losses and layoffs, and in some cases bankruptcy.

Faricy said 80,000 vehicles delivered a year could be the break-even point for the company.

The Slate Auto CEO said the company will continue to look to raise capital ahead of ramping up production and beginning deliveries. Faricy said it is likely too early to go public, but wouldn't rule out a future IPO.

"We're going to constantly take a look at what our options are. Certainly, going public will be one. 2027 is probably too soon, in my book."

GameStop CEO Drops Pay Package, Doubles Down On Ebay Ambitions

Benzinga News — Thu, 25 Jun 2026 12:19:24 -0400

GameStop Corp. (GME ) is signaling a sharper strategic pivot, as chairman and CEO Ryan Cohen has opted to forgo a proposed performance-based compensation package while the company pursues a takeover of eBay Inc. (EBAY ).The decision, disclosed in an update to GameStop's proxy materials, removes a CEO Performance Award that had been approved by the board earlier in 2026.

At the time, the company had not yet decided to explore acquiring eBay. Cohen's request to eliminate the package now aligns leadership incentives with what could become one of the most transformative deals in the company's history.

Cohen framed the move as a way to keep management fully focused on execution. The emphasis is not on compensation, but on operational performance and the integration strategy tied to the proposed eBay transaction.

GameStop leadership is prioritizing long-term value creation over near-term incentives.

Focused on eBay

The potential acquisition of eBay marks a dramatic escalation in GameStop's evolution from a legacy brick-and-mortar video game retailer into a broader e-commerce platform.

EBay brings a global marketplace, established seller networks and logistics infrastructure that GameStop currently lacks.

At the same time, the move raises critical questions about execution risk and capital allocation. Integrating a large, complex platform like eBay would require significant operational discipline. It would also test GameStop's ability to manage a business far larger and more diversified than its current footprint.

Cohen's decision to step back from performance-based pay may also serve a governance purpose.

By removing a potentially controversial compensation structure ahead of a major strategic shift, GameStop reduces a possible distraction for shareholders. The focus instead shifts squarely to the merits of the deal itself.

The Takeaway

GameStop said it will release additional materials this week outlining the strategic rationale and operational plan for the combined company. The details are likely to be closely scrutinized, particularly around synergies, cost structure and long-term growth assumptions.

As it stands, the message from leadership is one of alignment and intent. Cohen is tying his leadership credibility directly to the success of the eBay strategy, rather than to a predefined incentive package.

Markets will ultimately judge whether this bold approach delivers the transformation GameStop has been seeking.

GME Stock Price Activity: GameStop stock was up 0.83% at $21.13 at the time of publication Wednesday, according to data from Benzinga Pro.

Over the past month, GME has declined about 3.7% versus a 2.3% decline in the S&P 500 and is up roughly 4% year-to-date compared to the index's 6.9% gain. The stock is trading near its 52-week low of $19.93.

Semiconductor Volatility Flashes A Dot-Com Warning, Reveals An Unexpected Hedge

Benzinga News — Wed, 24 Jun 2026 09:48:13 -0400

The semiconductor trade has been one of Wall Street's hottest stories of the decade. The relentless demand for artificial intelligence infrastructure pushed the valuations to unprecedented highs, with the Invesco PHLX Semiconductor ETF (SOXQ ) up 82.98% year to date.

However, beneath the record highs, one market indicator is flashing an uncomfortably familiar warning. The Philadelphia Semiconductor Index (SOX) has recorded nine single-day gains of 5% or more over the last 60 trading sessions.

That kind of volatility is exceptionally rare. In fact, historical data shows this exact pattern has only been exceeded during the collapse of the Dotcom bubble in the early 2000s.

Clusters of one-day rallies are more typical of bear markets, when brief squeezes rip prices higher in the short term. What makes today's environment different is that semiconductor stocks are still trading near record highs.

That divergence leaves investors facing the question: is this strength a sign of a lasting technological transformation (this time is different!?) or is it a warning that expectations are extreme?

An Earnings Test

The next major test arrives with Micron Technology, Inc.'s (MU ) earnings report later today.

Micron is the focal point of the AI infrastructure buildout, owing to its exposure to high-bandwidth memory (HBM), a critical part of advanced AI systems. However, expectations are enormous. Analysts are forecasting a nearly tenfold increase in earnings per share compared with the same quarter a year ago.

The report may matter far beyond Micron itself.

"If $MU confirms tomorrow that DRAM, NAND and HBM tightness can last into 2027 or 2028, then memory companies have more reason to keep spending on capacity and advanced manufacturing tools," Futurum Equities Chief Market Strategist Shay Boloor noted ahead of the release.

That spending would ripple through the supply chain, benefiting equipment makers such as ASML (ASML ), whose lithography systems are essential for producing advanced chips.

Yet, even if Micron delivers, it doesn't guarantee a good stock performance. The company has beaten earnings and revenue expectations in each of its last eight quarters.

Despite that streak, its stock has frequently fallen immediately after reporting. Investors have repeatedly demanded more than strong results-they seek guidance that exceeds already lofty expectations.

Expectations are becoming a driving force behind the market. When valuations stretch, hope still tends to run in front of them.

According to data highlighted by Acquirers Funds founder Tobias Carlisle, analysts currently expect S&P 500 earnings to grow roughly 24% annually over the next five years. That is about double the historical norm and even higher than projections from the Dotcom era.

Carlisle views those forecasts less as realistic estimates and more as a measure of investor optimism.

"It's a sentiment indicator, not a forecast you should trust," he said. "Analysts are notoriously bad at five-year earnings projections, and the estimates tend to be most wrong precisely when they're most extreme."

If those expectations prove unrealistic, the consequences could be significant for technology stocks that have led the market higher.

Still, history suggests the fallout may not be evenly distributed. BCA Research Chief Economist Peter Berezin revisited the surprising dynamics of the late 1990s.

"In the initial phase of the dotcom bust, tech stocks crashed while the rest of the market went up. We may be entering a similar phase now. Ironically, this means that a good hedge for stocks may be... other stocks."

MU Price Action: Micron Technology shares were up 3.65% at $1090.15 during premarket trading on Wednesday, according to Benzinga Pro data.

Rocket Lab Stock Drops 7%: Is The Longer-Term Uptrend Still Intact?

Benzinga News — Wed, 24 Jun 2026 09:47:04 -0400

Rocket Lab Corp (RKLB ) shares are trading lower on Wednesday as investors adjust to two major catalysts: the stock's recent addition to the Nasdaq-100 and shifting market capital following SpaceX's massive IPO. Here's what investors need to know.

What Does Nasdaq-100 Inclusion Mean for Rocket Lab?

Rocket Lab officially joined the Nasdaq-100 during Monday's session, a change that can force index-tracking funds and ETFs (including Invesco QQQ, which manages over $300 billion) to buy the stock.

Rocket Lab was one of five additions to the Nasdaq-100 alongside Astera Labs, CoreWeave, Nebius Group and Teradyne, a reshuffle that can create one-time demand as passive vehicles rebalance.

The move follows a rotation-heavy period for space-related names after SpaceX's IPO on June 12. Rocket Lab and other space stocks sold off and have continued to see downside momentum as capital shifts toward the new listing.

Rocket Lab Sets Record With VICTUS HAZE

Rocket Lab launched the U.S. Space Force's VICTUS HAZE mission late Monday, lifting off 16 hours and 42 minutes after receiving its official notice, which broke the previous record by more than 10 hours.

The company managed all operational phases of the mission, providing an integrated service that encompassed spacecraft design, component fabrication, launch, and continuous 24/7 on-orbit mission management.

Now fully commissioned, the deployed Pioneer spacecraft is executing orbital maneuvers. The vehicle is currently conducting Rendezvous and Proximity Operations to track a separate active satellite in low Earth orbit.

Critical Levels For RKLB Stock

From a longer-term trend view, RKLB is still up 161.57% over the past 12 months and remains 17.3% above its 200-day SMA at $74.54, which keeps the bigger-picture structure constructive. The near-term damage is clearer: the stock is trading 23.6% below its 20-day SMA ($114.42) and 17.1% below its 50-day SMA ($105.46), signaling a sharp pullback from the recent run.

Momentum is the main watch item: MACD is below its signal line and the histogram is negative, which points to upside pressure fading versus the prior upswing. In plain English, MACD compares faster and slower trend momentum, and sitting below the signal line often means rallies can stall until buyers regain control.

Key Resistance: $93.00 - a nearby round-number/pivot area that also sits close to the 100-day SMA ($87.73) and 100-day EMA ($93.07), where rebounds can run into supply
Key Support: $74.00 - a key area near the 200-day SMA ($74.54) that can act as a "line in the sand" for the longer-term uptrend

What Is Rocket Lab's Business Model?

Rocket Lab is a space company that builds rockets and spacecraft and sells end-to-end mission services for civil, defense, and commercial customers. It designs and manufactures the Electron and Neutron launch vehicles and the Photon satellite platform, with operations spanning launch services and space systems.

Rocket Lab's VICTUS HAZE execution underscores that "full-stack" pitch: the company handled spacecraft design, component fabrication, launch, and 24/7 on-orbit management, and the deployed Pioneer spacecraft is now commissioned and conducting rendezvous and proximity operations in low Earth orbit. That kind of defense-linked responsiveness can matter for longer-term contract credibility even as near-term flows dominate price action.

RKLB Stock Price Activity Update

RKLB Stock Price Activity: Rocket Lab shares were down 6.75% at $88.71 at the time of publication on Wednesday, according to Benzinga Pro data.

Reddit Could Charge Google And OpenAI More For Its Data

Benzinga News — Wed, 24 Jun 2026 09:46:56 -0400

Reddit Inc (RDDT ) is an active participant at Cannes Lions, the world's largest festival for marketing industries, organized in France from June 22 to June 26 this year. Meetings with the company's CEO and COO at Cannes revolved around AI and agentic AI, according to Needham.

The Reddit Analyst: Analyst Laura Martin maintained a Buy rating and price target of $300.
The Reddit Thesis: Cannes Lions is the advertising industry's "biggest global gathering of the year," where the ad agencies of leading brands share ideas, sell new products, make deals and discuss their innovation roadmaps, Martin said in the note.

Although AI and agentic AI being "part of every conversation" was not surprising, what was unexpected is that almost half the CEOs mentioned 'speed,'" the analyst stated.

She noted that "speed" referred to different things, including:

Cutting out management layers
Breaking down operational boundaries to foster collaboration
Swapping humans for AI and GenAI
Manager compensation no longer linked to how many people they manage
Compensation being linked to speed of achieving outcomes

Martin recommended investors to keep an eye on companies talking about "speed" as a KPI, since these companies are likely to replace humans with AI faster and report cost savings.

The analyst said that the key takeaways from meeting Reddit's CEO and COO were:

New GenAI deals with Alphabet Inc (GOOGL ) (GOOG ) and OpenAI should come at higher fees upon renewal, as "human authentication is a mission-critical layer for LLMs"
New Search product creates value by signaling higher intent, faster onboarding of new users, and higher additional revenues by keeping people engaged for longer
The company is steady
The internal adoption of "The human company" branding, with GenAI and Agents being used in limited ways
Reddit is "largely immune from the Agentic maelstrom"
Upgrading senior executives, but not reconsidering its organizational design

RDDT Price Action: Reddit shares were down 1.41% at $163.29 at the time of publication on Wednesday, according to Benzinga Pro data.

Wendy's Stock Heats Up: Is The Next Short Squeeze Serving Tendies?

Benzinga News — Wed, 24 Jun 2026 09:46:49 -0400

Wendy's Co. (WEN ) shares surged on Wednesday, catching traders' attention as speculation builds around a potential short squeeze fueled by heavy retail interest and elevated short positioning. 'Fixing Her'

Benzinga Pro data shows short interest in Wendy's at 37% of the float, a notably high level that has historically drawn the attention of momentum-driven traders looking for asymmetric upside.

The move comes as chatter across Reddit's WallStreetBets and other retail trading forums accelerates, with users pointing to the setup as reminiscent of past meme stock runs.

User u/ElegantCombination43 drummed up support for WEN on Tuesday night with a viral post in the WallStreetBets subreddit. The user said traders "need to save Wendy's before it's too late," adding that "we'll all be out of a job" if it goes bankrupt.

Another user Mr-Night-Owl wrote a due diligence post on Wednesday morning titled "Fixing Her: A Wendys (WEN) DD" which included research on the company's financials, new management and turnaround efforts.

The redditor closed the post with a hopeful message for WEN investors: "TL;DR: Your pigtailed savior may make a comeback."

The Tendies Setup

Wendy's current setup checks several of the boxes that traders often associate with squeeze potential: elevated short interest, increasing retail visibility and a sharp upward price move that can attract additional momentum capital.

As shares climb, short sellers may face mounting pressure to cover positions, which can further accelerate gains in a feedback loop.

Trading volume has also picked up notably alongside the price move, suggesting growing participation beyond typical baseline levels.

Still, it should be noted that not every heavily shorted stock evolves into a sustained squeeze.

Unlike the GameStop Corp. (GME ) short squeeze, which was amplified by options activity and unprecedented retail coordination, current conditions may not fully replicate the same intensity. Elevated volatility can also cut both ways, exposing late entrants to sharp reversals if momentum fades.

From a technical perspective, traders are watching whether Wendy's can maintain its breakout and build support at higher levels.

Continued gains could reinforce the bullish narrative, while a failure to hold recent highs may signal that the move was more of a short-term momentum burst than the start of a prolonged squeeze.

Wendy's has firmly landed on the radar of retail traders hunting for the next "tendies"-generating opportunity, with price action and social momentum likely to dictate the next phase of the trade.

WEN Stock Price Activity: Wendy's shares were up 27.10% at $7.95 at the time of publication on Wednesday, according to Benzinga Pro data.

Over the past month, WEN has gained about 2.4% versus a 2.1% decline in the S&P 500 and is down roughly 4% year-to-date compared to the index's 7.1% gain. The stock has a 52-week range of $6.07 to $12.51.

Nvidia Supplier SK Hynix Targets Massive Nasdaq Debut— And It's Coming For Alibaba's Record

Benzinga News — Wed, 24 Jun 2026 09:46:39 -0400

South Korean semiconductor giant SK Hynix is setting its sights on a massive American Depositary Receipts (ADR) listing in a bid to expand its investor base and ramp up chip production capabilities.

The Nvidia Corp. (NVDA ) supplier unveiled plans to raise as much as 45.45 trillion won ($29.43 billion) through an ADR listing. The final sum, however, may vary following bookbuilding, as disclosed in a company regulatory filing on Wednesday.

The firm intends to issue 17.79 million new shares to facilitate the ADR listing on the Nasdaq market, slated for July 10. The funds raised will be channeled towards building a chip factory in Yongin, an advanced packaging fab in Cheongju, and acquiring chipmaking equipment like an Extreme Ultraviolet Scanner.

SK Hynix also stated that 10 ADRs will correspond to one common share. The offering is being overseen by BofA Securities, Citigroup Global Markets, Goldman Sachs, and JPMorgan Securities.

If priced at the top end of its range, the offering would surpass Alibaba Group Holding Ltd.'s (BABA ) $21.8 billion 2014 New York debut, becoming the largest ADR listing in history.

AI Memory Boom Fuels SK Hynix Rise

The announcement comes on the heels of SK Hynix surpassing Samsung Electronics Co., Ltd. (SSNLF ) to become South Korea's most valuable company, a significant shift in the nation's corporate hierarchy. On Monday, the company's shares had surged 5.7%, raising its market capitalization to approximately 2,082.5 trillion won ($1.35 trillion).

SK Hynix's rise above Samsung reflects a major shift in the semiconductor industry driven by the AI boom. As demand for high-bandwidth memory (HBM) chips used with Nvidia's AI processors surges, SK Hynix has emerged as a key beneficiary, highlighting how investors are increasingly valuing memory suppliers alongside GPU makers in the AI ecosystem.

Meanwhile, the tech-heavy KOSPI index in South Korea plunged roughly 10% on Tuesday, triggering circuit breakers and raising concerns about the market's hottest trades cooling off. However, Wedbush analyst Dan Ives dismissed the concerns. Ives called SK Hynix, Micron Technology (MU ), and Samsung the "golden jewels" of the AI revolution, citing strong demand and limited supply of high-bandwidth memory (HBM) chips. He said the scarcity of HBM has turned memory makers into key beneficiaries of the AI infrastructure boom, and argued that recent market selloffs overlook the industry's strong long-term growth prospects.

GM, Toyota And Other Automakers Warn California Car Sales Could Halt In July If This Legislation Is Not Delayed

Benzinga News — Wed, 24 Jun 2026 09:46:21 -0400

New and used car sales in California could halt starting July 1st as per the Alliance for Automotive Innovation, a group representing General Motors Co. (GM ), Toyota Motor Corp (TM ) and other automakers, if the state does not postpone parts of a law that protects domestic violence survivors.

California Car Sales To Be Halted?

According to a report by Reuters on Tuesday citing the group's comments, a bill moving through the state legislature would push back deadlines tied to in-car technology requirements that automakers say can't be finished on the current schedule.

The consortium added that the auto industry was already putting in place protections required by the 2024 statute, which includes a requirement for a documented request process that can cut off another driver's remote access within two business days, along with an in-vehicle option that lets drivers disable location access.

The automaker group said companies have already rolled out an online pathway for drivers to request termination of another person's access to connected services.

It said the remaining deadlines involve in-vehicle systems that require significant engineering work, validation and integration across multiple models and model years, which would mean the deadline may not be met.

Vehicle Tracking Woes

The report also shared that drivers have previously said automakers did not assist women who alleged they were being tracked by partners, including a lawsuit involving Tesla Inc. (TSLA ) that was not successful.

The lawsuit was filed by a woman who alleged that her husband, who was abusive and under a restraining order, was tracking her movements using the Tesla smartphone app to track their 2016 Model X, a Reuters report from 2023 said.

GM Introduces Updated Silverado

GM recently introduced the fifth-generation 2027 Chevrolet Silverado 1500 pickup truck with a new 10-speed automatic gearbox and new V-8 engine options.

Notably, the automaker had sunset the development of the next-generation Silverado EV pickup at its Factory Zero plant in Michigan amid a sector-wide rolling back of EV efforts due to President Donald Trump's anti-EV policies.

However, EV sales in the U.S. still grew, according to estimates shared by market research firm Cox Automotive, with sales likely reaching 85,000 units in May despite the end of the $7,500 EV Credit.

SpaceX: Has the Story Run Ahead Of The Stock — Or The Other Way Around?

Benzinga News — Wed, 24 Jun 2026 09:45:30 -0400

SpaceX (SPCX ) has gone from Wall Street darling to battleground stock in less than two weeks. Analyst calls span everything from a hard Sell to blue‑sky AI moonshots, with valuation the clear fault line.The Bears

CFRA's Keith Snyder planted the first flag on the bearish side, launching coverage on SPCX with a Sell and a $115 price target that implies hefty downside from the IPO frenzy levels.

He argues investors are pre‑paying for still‑nascent AI and orbital‑compute businesses while the cash engine remains Starlink.

His sum‑of‑the‑parts math lands near $1.2 trillion of fair value versus a market cap that briefly brushed $2.75 trillion dollars.

In his view, SpaceX is a world‑class franchise wrapped in an over‑extended multiple and heavy capex, not a buy‑at‑any‑price growth story.

Susquehanna's Mehdi Minervino effectively calls a time‑out, setting a $170 price target and telling investors to wait for a better entry after a $400 billion drawdown.

He still models eye‑watering 80%+ revenue and EBITDA CAGRs through 2028 but worries the market already discounts much of that ramp.

The Bulls

On the other end, New Street Research's Pierre Ferragu leans into the upside, with a $165 dollar base‑case target and a $330 dollar bull case if SpaceX successfully prices in its largest opportunities.

He models 2030 revenue near $195 billion, led by a $127 billion AI segment, and values the platform using growth‑stock peers like Tesla Inc. (TSLA ), Palantir Technologies Inc. (PLTR ) and Cloudflare Inc. (NET ).

For Ferragu, SPCX is a multi‑decade compounder whose space, data and defense optionality is still under‑appreciated at current levels.

Oppenheimer's Tim Horan sits in the optimistic camp as well, with an Outperform and a $250 target built on a $25 trillion AI TAM and SpaceX's vertically integrated stack across satellites, chips and data.

Yet even Horan concedes the execution stretch as SpaceX pushes simultaneously into launch, broadband, compute and AI.

The Bottomline

Overall, the Street's average price target sits at $178.33, skewed positive but with dispersion widening fast. Everyone agrees SpaceX owns unique assets; the only real question is how much of that future investors have already paid for.

SPCX Stock Price Activity: SpaceX shares were down 1.86% at $153.19 during premarket trading on Wednesday, according to Benzinga Pro data.

Gold Just Did Something It Hasn't Done Since 2022. Nvidia Bulls May Like It

Benzinga News — Wed, 24 Jun 2026 09:45:21 -0400

Gold investors may not like what they're seeing on the charts. According to Barchart, gold has fallen below its 200-day moving average by the largest margin since 2022, a notable technical breakdown for one of the market's favorite safe-haven assets.

But while the move may concern gold bulls, Nvidia Corp. (NVDA ) investors could see it differently.

Gold's Breakdown Is About More Than Gold

Gold often thrives when investors are worried. The precious metal tends to attract capital during periods of economic uncertainty, geopolitical tension and market volatility. Conversely, when investors become more comfortable taking risk, money often flows elsewhere.

That's why gold's latest technical breakdown may be sending a broader message about market sentiment. Investors appear increasingly willing to rotate out of defensive assets and back into growth-oriented trades.

And few trades have captured Wall Street's attention more than artificial intelligence.

The AI Trade Is Built On Risk Appetite

Nvidia has become one of the biggest beneficiaries of the AI boom, helping power a rally that has lifted semiconductor stocks, software names and the broader technology sector.

But AI isn't just a growth story. It's also a confidence trade.

Investors buying Nvidia today aren't paying for what the company earned last quarter. They're betting on years of future AI spending from hyperscalers such as Microsoft Corp. (MSFT ), Amazon.com Inc. (AMZN ), Alphabet Inc. (GOOGL ) (GOOG ) and Meta Platforms Inc. (META ).

That kind of optimism tends to flourish when investors are embracing risk-not hiding from it.

What History Suggests

The last time gold traded this far below its 200-day moving average was in 2022, a period that ultimately coincided with improving sentiment toward risk assets after one of the market's most challenging years.

While history doesn't always repeat itself, the recent divergence between gold and high-growth technology stocks is attracting attention.

Gold is weakening. The move is reverberating across gold-linked ETFs as well. SPDR Gold Shares (GLD ), iShares Gold Trust (IAU ) and SPDR Gold MiniShares Trust (GLDM ) have all reflected the metal's recent weakness, highlighting a broader shift away from defensive assets and toward risk-sensitive trades. These ETFs are down over 10% in the past month.

AI stocks remain near record highs. And investors continue to pour money into one of the market's most popular themes.

Whether gold's decline proves temporary or marks the start of a larger trend remains to be seen.

But for Nvidia bulls, the message may be straightforward: investors appear more interested in chasing growth than seeking safety.

Qualcomm Eyes TikTok Parent ByteDance For Custom Chip Design Services: Report

Benzinga News — Wed, 24 Jun 2026 09:45:03 -0400

Global chip supplier Qualcomm Inc. (QCOM ) is reportedly in talks with China's ByteDance to provide custom chip-design services.

If the deal materializes, the TikTok parent would become an early customer of Qualcomm's chip-design services operation, Reuters reported on Wednesday.

The proposed chips for ByteDance would partially utilize technology from AlphaWave Semi, a high-speed connectivity company acquired by Qualcomm last year. However, talks are still ongoing, and ByteDance may ultimately pursue alternative partners, according to the report.

The discussions also reportedly involve the design of video processing units (VPUs), with the aim of starting mass production by the end of the year.

Qualcomm and ByteDance did not immediately respond to Benzinga's request for comments.

AI Deals Drive Qualcomm's Next Phase

The report comes as Qualcomm is expanding into the fast-growing data center chip market, developing CPUs, AI inference accelerators, and custom ASICs for customers, positioning itself against rivals such as Broadcom Inc. (AVGO ) and Marvell Technology Inc. (MRVL ).

The company has been in talks to acquire AI chip startup Tenstorrent to expand its AI chipmaking capacity and is also reportedly eyeing a $4 billion deal for AI company Modular Inc.

The reported ByteDance talks come at a critical time for Qualcomm, which is grappling with higher memory-chip costs and a slowdown in smartphone demand, as global handset shipments are projected to post a record annual decline this year.

The talks also coincide with Qualcomm CEO Cristiano Amon's push into AI hardware, as he revealed the company is developing over 40 AI-powered devices, including smart jewelry, AI-enabled earbuds, pins, and watches designed to act as personal AI assistants.

China Push Continues Despite Tensions

Notably, talks also highlight that U.S. technology companies remain eager to pursue business opportunities in China despite growing U.S.-China tensions over AI chip exports.

However, earlier this month, ByteDance was reported to be doubling down on domestic companies, being in talks with China's Iluvatar CoreX and Baidu Inc. (BIDU ) to acquire AI chips, potentially making Iluvatar CoreX ByteDance's third major domestic GPU supplier.

Benzinga edge rankings indicate QCOM has a Momentum score in the 86th percentile and Growth score in the 43rd percentile.

Price Action: On a year-to-date basis, shares of QCOM surged 18.01%, as per Benzinga Pro data. On Monday, the stock declined 8.01% to close at $204.13.

FedEx Reports Q4 Double Beat, Completes Freight Spin-Off — Stock Falls Anyway

Benzinga News — Wed, 24 Jun 2026 09:44:45 -0400

FedEx Corporation (FDX ) shares are trading lower Wednesday. The company reported fourth-quarter financial results on Tuesday after the market closed.Q4 Highlights

FedEx reported adjusted earnings per share of $6.31, beating the consensus estimate of $5.96. In addition, the company reported revenue of $25.00 billion, beating the consensus estimate of $24.04 billion.

Federal Express segment operating results improved during the quarter, driven by increased U.S. domestic and International Priority package yields, continued cost savings from transformation initiatives and higher U.S. domestic and international export package volume. The company also completed its spin-off of FedEx Freight on June 1.

The company ended the quarter with $13.3 billion in total cash and cash equivalents and intends to repurchase up to $1 billion worth of shares opportunistically throughout the rest of the calendar year.

"Our profitable growth strategy is working. We are building momentum across our global industrial network, driving structural improvements and winning in high-value growth markets," said Raj Subramaniam, President and CEO.

"With the successful spin-off of FedEx Freight, we are entering this next chapter positioned to grow while further optimizing our network and driving robust free cash flow."

Outlook

FedEx expects revenue growth of 11% year-over-year for calendar year 2026 and guided for adjusted earnings in the range of $16.90 to $18.10 per share.

FedEx Shares Fall

FDX Price Action: At the time of publication, FedEx shares are trading 7.35% lower at $293.91, according to data from Benzinga Pro.

IAEA Chief Confirms Iran Nuclear Inspections Under US Deal Despite Tehran’s Pushback: ‘This Is Going To Happen’

Benzinga News — Wed, 24 Jun 2026 09:43:57 -0400

The head of the United Nations' nuclear agency, Rafael Mariano Grossi, has confirmed that his team will conduct inspections of Iran's nuclear enrichment sites. This announcement forms a key part of the interim deal between the U.S. and Iran aimed at ending the ongoing conflict.

The International Atomic Energy Agency (IAEA) plays a vital role in assessing Iran's nuclear inventory, making this announcement significant. Earlier this week, the U.S. and Iran gave conflicting statements about the planned inspections.

Grossi referred to these discrepancies as a "war of words," emphasizing the existence of a Memorandum of Understanding (MoU) signed by both nations' presidents, the Associated Press reported on Wednesday.

Grossi stated that the agreement "explicitly" mentions the IAEA's role in supervising all nuclear activities related to Iran's nuclear material facilities. He added, "Obviously, to do that, we will have to inspect."

The IAEA head said inspections will be necessary and are certain to take place, though the exact timing is not critical.

"Whether this happens the day after tomorrow or in one week or in 10 days, it's important, but not essential. This is going to happen." he said.

US, Iran Clash Over Inspections

Earlier this week, Vice President JD Vance confirmed Iran's agreement to allow IAEA inspectors back into the country, terming it a "major milestone" for the American people. This announcement followed negotiations between the U.S. and Iran in Switzerland.

However, Iran's Parliament Speaker Mohammad Bagher Ghalibaf denied any new IAEA deal. Iran's Foreign Minister, Esmaeil Baqaei, said there are no plans to allow IAEA inspections of nuclear facilities damaged during the war, and denied that Iranian officials had met with the UN nuclear watchdog's director general.

On Tuesday, Trump fired back on Truth Social and accused Iran of making false statements, asserting that Tehran had already agreed to indefinite inspections. He said the inspections were a key area of progress, citing "Nuclear Honesty," and warned that negotiations would not continue if Iran had not accepted them.

The inspections are crucial to the deal, which requires Iran's uranium stockpile to be "downblended" from highly enriched levels.

Since the 2025 Israel-Iran war, Tehran has blocked IAEA access to key uranium enrichment facilities, limiting the agency's ability to verify the status of Iran's stockpile of highly enriched uranium and monitor its enrichment equipment.

Although inspectors have been allowed to visit other nuclear sites, such as the Bushehr power plant, the lack of access to enrichment centers has raised concerns among nonproliferation experts that uranium could be relocated to undeclared locations, according to AP News.

KB Home Posts Upbeat Q2 Sales, Joins Inmode, Icon And Other Big Stocks Moving Higher On Wednesday

Benzinga News — Wed, 24 Jun 2026 09:43:51 -0400

U.S. stocks were higher, with the Nasdaq Composite gaining more than 50 points on Wednesday.

Shares of KB Home (KBH ) rose sharply after the company reported financial results for the second quarter.

KB Home reported second-quarter revenue of $1.11 billion, beating analyst estimates of $1.10 billion, according to Benzinga Pro. The homebuilder reported second-quarter earnings of 43 cents per share, missing analyst estimates of 45 cents per share.

KB Home shares jumped 16.2% to $61.26 on Wednesday.

Here are some other big stocks recording gins in today's session:

Wendy's Co (WEN ) shares jumped 37.8% to $8.62 as investors cheered a key executive appointment and retail traders piled into the stock amid heavy short interest.
Absci Corp (ABSI ) gained 37.7% to $10.21 after the company announced interim Phase 1 data from its first-in-human trial of ABS-201. The company priced its $100 million underwritten offering of 13,495,277 shares at $7.41.
Sunrun Inc (RUN ) shares rose 24.7% to $15.97. Tesla Inc (TSLA ), Sunrun and Renew Home are working together to free up enough electrical capacity to support the equivalent of 17 large data centers during periods of peak demand, the companies announced on Wednesday.
Churchill Capital Corp XI (CCXI ) gained 22.5% to $12.74 after the company announced a SPAC merger transaction with Agility Robotics.
Legato Merger Corp III (ENRD ) surged 16.5% to $7.14. Einride named Bumble and Q2 Holdings director R. Lynn Atchison to its board.
Definium Therapeutics Inc (SFTX ) gained 15.4% to $41.75. The company announced the pricing of a $700 million public offering of 20,588,236 shares at $34.00 per share.
Icecure Medical Ltd (ICCM ) rose 11.5% to $6.82.
Inmode Ltd (INMD ) gained 11.1% to $14.83 after the company announced it received an unsolicited proposal from M.N Business Strategy to acquire all outstanding ordinary shares it does not already own.
Dream Finders Homes Inc (DFH ) jumped 11% to $16.37.
Primoris Services Corp (PRIM ) gained 10.8% to $94.20. Primoris Services recently announced the departure of COO Jeremy Kinch. Also, the company cut its FY26 guidance.
LGI Homes Inc (LGIH ) gained 9.6% to $61.44.
Mohawk Industries Inc (MHK ) rose 9.4% to $118.83.
Builders FirstSource, Inc. (BLDR ) gained 9% to $83.64.
RH (RH ) jumped 9% to $154.63.
ICON PLC (ICLR ) gained 8.7% to $155.09 after the company reported better-than-expected first-quarter financial results.
Pultegroup Inc (PHM ) rose 8.4% to $137.23.
Adaptive Biotechnologies Corp (ADPT ) gained 7.7% to $18.56.
D.R. Horton Inc (DHI ) gained 7.5% to $167.86.
Shift4 Payments, Inc (FOUR ) rose 7.2% to $41.44.

Tesla, Sunrun Team Up To Use Home Batteries And Solar To Power AI Data Centers

Benzinga News — Wed, 24 Jun 2026 09:43:23 -0400

Tesla Inc (TSLA ), Sunrun Inc (RUN ) and Renew Home are working together to free up enough electrical capacity to support the equivalent of 17 large data centers during periods of peak demand, the companies announced on Wednesday. Sunrun is the largest U.S. residential solar and battery installer, while Renew Home, a Google spin-off, manages smart home energy devices such as thermostats and water heaters.

The companies plan to create what is known as a virtual power plant, a network of distributed energy devices such as batteries, thermostats and solar systems that can be coordinated through software to reduce pressure on the grid during peak demand.

Instead of relying solely on new power plants or transmission lines, the companies want to tap energy resources already sitting inside homes. After consumers opt in, software could charge home batteries when solar energy is abundant and discharge that power later when electricity demand spikes, particularly during evening hours when AI data centers continue consuming power.

Sunrun CEO Mary Powell told The New York Times that utility-scale energy projects take years to build, while distributed residential systems can provide immediate capacity.

The companies said the partnership could free enough electrical capacity to support the equivalent of 17 large data centers during peak demand.

AI Power Crunch Deepens

The push comes as electricity demand from AI infrastructure accelerates across the United States.

Goldman Sachs estimates global data center electricity demand could surge 220% by 2030, rising by 905 terawatt-hours to 1,350 TWh, with roughly 60% of new demand expected to come from the U.S. Data centers currently account for about 6% of U.S. electricity demand and could rise to 11% by 2030.

Opposition to new AI infrastructure has also intensified. At least 75 U.S. data center projects worth about $130 billion were blocked or delayed in the first quarter of 2026 amid concerns over electricity use, water consumption, land use and rising utility bills.

Musk's Solar Vision

The partnership also aligns with Tesla CEO Elon Musk's broader energy strategy tied to AI expansion.

Earlier this year, Musk said Tesla aims to produce 100 gigawatts of solar cells annually to help power AI data centers, underscoring his view that energy supply could become one of the biggest constraints on AI growth.

Resource demands from AI infrastructure are increasingly under scrutiny beyond electricity alone. NVIDIA Corp. (NVDA ) recently pushed back on concerns around AI-related water consumption, arguing that newer cooling technologies are reducing the environmental footprint of data centers.

Price Action

Shares of Sunrun Inc. closed Tuesday at $12.81, down 5.95%, but surged 22.19% in premarket trading on Wednesday to $15.65 following the report. Meanwhile, shares of Tesla Inc. closed Tuesday at $381.61, down 5.79% on the day, and rose 0.47% in premarket trading Wednesday to $383.42.

Benzinga Edge Stock Rankings show Tesla with a Momentum score of 22.09, Growth of 88.46, Quality of 66.48 and Value of 3.51. The stock has a negative price trend across short-, medium- and long-term time frames.

Senate Democrats Demand Hearing About $500M UAE Investment In Trump Crypto Venture

Benzinga News — Wed, 24 Jun 2026 09:42:38 -0400

Senate Democrats on Tuesday demanded immediate hearings into a $500 million UAE investment in the Trump family crypto venture World Liberty Financial.

The Deal Closed Four Days Before Trump's Inauguration

Five senators, including Elizabeth Warren (D-Mass.) and Richard Blumenthal (D-CT), want multiple Senate committees to investigate a transaction in which associates of Abu Dhabi royal Sheikh Tahnoon bin Zayed Al Nahyan bought a 49% stake in World Liberty Financial.

The buyers reportedly wired $218 million upfront to entities controlled by the Trump family and Steve Witkoff, Trump's Middle East envoy, just before Trump took office.

The senators argue no foreign official has ever held this kind of direct ownership stake in a sitting US president's company before.

They want that question answered under oath, specifically who in the administration knew about the payments, and at what point they found out.

A Billion-Dollar Chip Deal Sits At The Center Of The Senators' Concerns

Nvidia (NVDA ) chips are the biggest flashpoint in the senators' letter.

Months after the World Liberty Financial deal closed, Commerce dropped Biden-era export limits that had capped how many advanced chips the UAE could buy, opening the door for G42, an Emirati AI firm run by Sheikh Tahnoon himself, to lock in 35,000 Blackwell chips worth more than $1 billion.

Intelligence officials subsequently found the same firm routing U.S. chip technology toward programs that strengthened China's missile systems, despite G42's earlier pledge to sever its China ties.

Two other moves round out the pattern the senators want explained.

Washington pushed through a $1.4 billion arms sale to the UAE that same window despite lawmaker pushback over Sudan, where the conflict has killed more than 150,000 people.

Moreover, Treasury separately stood up a new fast-track CFIUS review lane, the exact regulatory shortcut UAE officials had been lobbying for.

How This Investigation Has Evolved Since February

Warren first labeled the arrangement crypto corruption back in February, when reports surfaced that Sheikh Tahnoon's firm Aryam Investment became World Liberty Financial's largest shareholder.

Rep. Ro Khanna opened a parallel House investigation the same month. A Wall Street Journal feature found World Liberty Financial generated at least $1.4 billion for the Trump and Witkoff families in just 16 months, more than Trump's real estate empire earned over eight years.

The same UAE ties have now become the central obstacle blocking the CLARITY Act.

A Senate Banking Committee amendment barring the president, vice president, and Congress members from crypto business activity failed in committee on procedural grounds, leaving the ethics dispute unresolved and the bill's path to a floor vote stuck exactly where it was last week.