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Carmakers love to talk about the future. What they actually build in their factories, quarter after quarter, tells you what they really believe.Toyota (TM) has spent a generation proving that point. It sold the world on the hybrid with the Prius, turned that idea into an empire, and grew into the planet’s best-selling automaker without leaning much on pure electric cars. Its chairman, Akio Toyoda, has spent years warning that battery power would never take over the road the way its boosters promised.Then came the pivot almost everyone said Toyota could not make. The company revamped its bZ electric crossover, added the C-HR, opened a new battery plant in Liberty, North Carolina, and revealed a new Highlander that dropped the gas and hybrid engines the nameplate had carried for a quarter century. It showed the electric version off at the New York International Auto Show in April as its first battery-electric vehicle (BEV) assembled in America.That is where the story gets complicated. In July, Toyota delayed production of that electric Highlander, its first three-row EV built for American buyers, and said it would keep building the gas and hybrid version instead.

Toyota just delayed its first three-row electric SUV built in America.Tramino / Getty Images

What Toyota said about the Highlander delayToyota confirmed that production of the 2027 Highlander EV has slipped, and the reason it gave was housekeeping. The delay comes as Toyota is making “additional adjustments to the vehicle prior to launch,” according to Cars.com, which first reported a company spokesperson’s confirmation.The automaker had planned to start selling the electric Highlander late this year. It has not set a new date.More Automotive:BMW’s new SUV is built for an uncertain futureThe U.S. may never sell 17.6 million cars againBofA sees Ford chasing a market far bigger than EVsIn the meantime, the current gas and hybrid Highlander will keep rolling off the line through December, reported Electrek. When I read that official explanation, the timing stood out to me. The extra months will let Toyota keep selling its higher-margin gas and hybrid version, which several outlets flagged as the more likely motive than last-minute polish.None of that stops the electric project. Toyota is building the Highlander EV at its Georgetown, Kentucky, plant, which employs about 10,000 people, and sourcing batteries from a new $13.9 billion factory in North Carolina. The delay does not undo that investment. It just changes what rolls out of Kentucky first.The timing is the real puzzle. Toyota is finally selling EVs that buyers want, which makes pausing its next one a curious move, according to Electrek.Related: Toyota’s global dominance faces new testHow Toyota’s EV sales tell the real storyHere is the part that makes the delay make sense. When I looked at Toyota’s US numbers through June, the split was hard to argue with.The automaker sold more than 100,000 Highlanders and Grand Highlanders in the United States through June, against roughly 22,000 fully electric vehicles across its entire lineup, based on the company’s own sales report. The gas and hybrid three-row SUVs are the profit engine. The electric one is still the promise.The contrast runs through the whole lineup. Toyota says it will soon offer 22 models with electrified powertrains, and most of them are hybrids rather than pure EVs. Its doubts start at the top. Toyoda has forecast that battery EVs will top out near 30% of the global market “no matter how much progress” they make, according to Fortune. This year he told the British site Carwow that he feels “very alone” in defending the combustion engine, reported Motor1.My read, after tracking these signals, is that Toyota is running two strategies at once:Toyota made the next Highlander electric-only, then delayed its launch, according to Cars.com.Chairman Akio Toyoda still pegs battery EVs at a 30% global ceiling, according to Fortune.The revamped bZ has cleared more than 17,500 US sales this year, outpacing the Chevrolet Equinox EV from General Motors (GM), reported Electrek.Toyota moved over 100,000 three-row Highlanders in the US through June, versus about 22,000 EVs, based on its sales report.What the delay means for EV buyersFor shoppers, the wait has a price. The electric Highlander was expected to start around $50,000, which would slot it under the three-row EVs already on sale, reported Electrek.Tesla’s (TSLA) new Model Y L starts at $61,990, the Kia EV9 at $54,900, and the Hyundai Ioniq 9 at $58,955. Buyers cross-shopping those models now face a choice. They can wait on a Toyota with no firm on-sale date, or buy a rival sitting on the lot today.On paper, the Toyota is worth waiting for. It targets up to 320 miles of range and a 10% to 80% charge in about 30 minutes, uses the North American Charging Standard (NACS) plug, and can power tools or a home through vehicle-to-load (V2L) technology, a first for a Toyota sold in the US, according to Electrek and Toyota.For a family shopping right now, the takeaway is plain. A three-row Toyota EV is coming, but not on a timeline you can plan a purchase around, so a rival on the lot or the current gas Highlander may be the nearer-term answer.The segment itself is not the problem. Kia EV9 sales rose 42% through June, and Hyundai Ioniq 9 sales jumped 380%, Electrek reported. That is what makes the delay sting. Three-row electric SUVs are one of the few EV categories where buyer demand is clearly climbing.What Toyota’s next move signalsThe open question is whether the electric Highlander shows up in late 2026, in 2027, or quietly slides further down the calendar.Its electric cousins are riding on the same hardware. The Lexus TZ and the Subaru Getaway share the Highlander’s platform, so a slip here could ripple across three brands, Electrek noted. If the delay stretches deep into 2027, it risks leaving Toyota further behind in a crowded segment. Toyota has been the world’s best-selling automaker for six straight years, and it got there on hybrids, not EVs, according to Motor1.Toyota has bet real money on going electric. It built the factory, opened the battery plant, and turned its family SUV into a BEV. For now, though, it is holding the gas pump open with one hand while it finishes wiring the future with the other. Which hand it trusts more is the thing worth watching.Related: Toyota is spending $3.6B to undo a move from 5 years ago

Wall Street has spent most of 2026 losing patience with Mattel (MAT), and Goldman Sachs just made that clear.The firm downgraded the toy giant to its lowest rating and set a price target below where the stock currently trades. For the company behind Barbie and Hot Wheels, this is a tough verdict.The call lands at a noteworthy moment. Mattel shares are already trading close to their weakest level in years.Therefore, a fresh warning from Goldman Sachs carries more weight for anyone still holding the stock.What Goldman Sachs said in its Mattel downgradeOn July 9, Goldman Sachs cut Mattel to sellfromneutral and lowered its 12-month price target to $12 from $15, Investing.com reported.A sell rating from a bank of Goldman’s size is rare, and it tells investors the firm sees more room to fall than to rise from here.Analyst Stephen Laszczyk called Mattel a hard company to run over the next six to 12 months, with more moving parts than most.

Mattel’s core brands still sell, but Wall Street wants proof that its newer bets can pay off.JHVEPhoto / Getty Images

Why Goldman soured on MattelThe change in rating did not come abruptly. Goldman’s view of Mattel has cooled in stages all year.The bank held a buy rating with a $21 target into early 2026, then Goldman downgraded the stock to neutral in January, Investing.com reported. Goldman warned that tariffs and softer toy demand could weigh on results.Three problems Goldman flaggedWeak payoff from media bets. The muted response to Mattel’s Masters of the Universe content and its companion video game raised doubts about the return on its entertainment push.Hard-to-execute new ventures. Goldman is skeptical Mattel can smoothly scale trading cards, high-end collectibles, and digital games all at once.Costly market defense. A shaky consumer backdrop and aggressive pricing across the toy industry make it more expensive to protect market share.Goldman also reset how it values the stock, moving to 8 times its 2027 earnings estimate from 10 times, Barron’s noted.That shift matters. Goldman is now pricing Mattel like a slow-growth consumer products company rather than a premium entertainment name.This limits how much investors may be willing to pay.How Mattel stock is holding up against the pressureMattel shares slipped about 1.7% in premarket trading after the note, adding to a decline of 35% to 39% over the past six months.The stock now hovers near $13, just above a 52-week low of $12.73, so Goldman’s $12 target implies only a single-digit additional decrease from here.Related: Netflix has a stunning milestone in sight for 2027There is a real tension surrounding the situation. Mattel actually beat expectations in the first quarter, posting revenue of about $862 million against forecasts near $809 million, Yahoo Finance reported.Q1 sales rose about 4%, led by vehicles and newer categories, though tariffs and currency cut into margins. However, Goldman’s concern is less about current sales and more about whether thenext phase of growth shows up on time.Activist pressure adds another layer for Mattel investorsGoldman is not the only party pushing Mattel. Southeastern Asset Management has argued that the company would be better off sold to a private equity firm, rival, or media company, according to Reuters.More Retail Stocks:Hasbro just made a bold move with a beloved classicBank of America lifts target on viral appliance stock after Prime Day173-year-old denim giant sees one fashion trend surge 70 percentFor investors, that leaves two competing views. Goldman sees a company that could stumble. Southeastern sees one worth buying. Either way, the second half of 2026 is when Mattel has to show which side is right.What would have to change for Mattel stock to recoverGoldman did not rule out a turnaround. It named clear signs that could bring Mattel back to a more positive view.Three things Goldman wants to seeBarbie getting back on track, with the flagship brand returning to steady, predictable revenue growth.Real proof points, meaning hard financial evidence that its investments in new categories are working.Stronger content revenue, with television and film licensing deals delivering more than expected.This also serves as a watchlist for investors.If Mattel’s next few quarters show Barbie growing steadily and its new bets paying off, the bearish case weakens. If not, Goldman’s caution looks well placed.None of this is a recommendation to buy or sell. Stocks at multi-year lows can still drop or suddenly bounce, so investors should trade based on risk tolerance.Related: Paramount’s Warner deal has a new $650 million problem

A quiet transformation is happening inside America’s largest corporations. And actually, most people have no idea it is occurring. The pension funds and 401(k) plans covering millions of American workers are increasingly being handed over to Wall Street’s elite firms to manage. Why? It’s like the companies sponsoring those plans no longer believe they can do it themselves.The trend is now impossible to ignore. Goldman SachsGS) confirmed July 9 that it had won mandates to manage a combined $70 billion in retirement assets for two of America’s most iconic companies: Verizon Communications Inc. (VZ) and Lockheed Martin Corporation (LMT).The deal includes approximately $30 billion in pension assets for both companies and approximately $40 billion in Verizon’s defined-contribution retirement assets, typically 401(k) plans, according to Goldman.No, it is not routine portfolio management. It is one of the largest corporate investment outsourcing wins in recent history, and it tells you something important about where the entire asset management industry is heading.Goldman Sachs GS) confirmed the announcement on July 9. The firm’s outsourced chief investment officer (OCIO) business manages approximately $480 billion in assets as of March 31, according to company disclosures.Also Read: Goldman Sachs: The History Behind Wall Street’s Most Influential Investment BankWhy America’s biggest employers are handing their retirement plans to GoldmanThe forces driving corporate America toward outsourced investment management are structural, not cyclical.Corporate pension portfolios have become genuinely difficult to manage internally. Alternative assets, which include private equity, private credit, and infrastructure, have grown from roughly 5% of institutional portfolios to 30-50% in many cases, according to the April 2026 Praxis Rock report.Also Read: Goldman Sachs Group Inc. (The) Latest News and StoriesA typical corporate benefits team may have just a handful of internal staff. That lean team simply cannot source private equity deal flow, track capital calls, monitor complex distribution waterfalls, or even conduct meaningful due diligence across dozens of alternative managers simultaneously.The second pressure is what Goldman has described as a “financial vortex” in its own 2025 Retirement Survey and Insights Report. Some worker groups facing competing financial priorities, including housing, debt, and caregiving, are demanding increasingly sophisticated retirement options. More Goldman Sachs:Goldman Sachs issues major prediction for US housing marketSchwab, Goldman Sachs snag big banking honorGoldman Sachs spots a troubling big tech trendPersonalized managed accounts, lifetime income solutions, and digital investment strategies are no longer niche products. They are what employees expect.The third driver is operational speed. Traditional pension consulting works on a “consultant advises, committee decides” model that can slow significant portfolio adjustments by months. Under the OCIO model that Goldman operates, the firm takes full discretionary control over manager selection, asset reallocation, and risk oversight. Corporate sponsors get a single accountable partner and faster execution.”Large plan sponsors are consolidating responsibilities with one partner with the investment expertise and depth of platform to manage their bespoke needs,” said Marc Nachmann, Goldman’s global head of asset and wealth management, in the announcement.The context behind Verizon and Lockheed MartinNeither of these companies came to Goldman without a history. In a report by RGA, Verizon executed a massive pension risk transfer in 2024, offloading $5.9 billion in plan liabilities for 56,000 retirees to RGA Reinsurance and Prudential. The Goldman OCIO mandate is the next phase of that multi-year strategy to reduce internal retirement management burden while protecting funded status gains.Related: Lockheed Martin seals $3.5B deal amid global defense spending spreeLockheed Martin has been one of the most active corporate pension de-riskers in the country. Back in 2018, we saw an $800 million transfer to Athene covering approximately 9,000 retirees, according to Athene.Lockheed executed a $4.9 billion transfer in 2021 and an additional $4.3 billion transfer in 2022, collectively shifting tens of thousands of beneficiaries to insurance company annuity coverage, Lockheed reported.Moving investment management to Goldman represents the logical next step in the same framework: reduce complexity, transfer risk, and focus internal resources elsewhere.

Goldman Sachs’ Asset and Wealth Management division generated $16.68 billion in full-year 2025 net revenues. The division currently oversees approximately $3.7 trillion in total assets.Paul Yeung/Bloomberg via Getty Images

Why Goldman wants this business, the revenue strategy behind the mandateMy read of the Goldman strategy here is this. The firm’s financial disclosures also make it explicit.Goldman’s Asset and Wealth Management division generated $16.68 billion in full-year 2025 net revenues, including a record $11.54 billion in management and other fees, according to the 2025 Annual Report. Related: Goldman Sachs doubles down on Applied Materials stock targetThat fee revenue has grown at a 12% compound annual growth rate since 2021. The division oversees approximately $3.7 trillion in total assets, according to Goldman Sachs.The attraction of OCIO mandates is the revenue profile. Long-term institutional mandates generate steady, recurring fee income that does not fluctuate with trading volumes or deal flow. Goldman’s trading and investment banking revenues are inherently volatile. Growing the fee-based asset management business creates a structural buffer against those swings.In Q1 2026 alone, Goldman reported $62 billion in long-term fee-based net inflows, marking the firm’s 33rd consecutive quarter of positive long-term inflows, according to the Q1 earnings presentation. Net revenues in Asset & Wealth Management were $4.08 billion in Q1, up 10% year over year, with management and other fees reaching $3.08 billion, according to the Q1F26 report.Now, do I think Goldman Sachs can sustain the momentum of securing massive mandates like the $70 billion Verizon and Lockheed? Of course, yes. It’s clearly evident that the mandate is layered onto a business already managing $480 billion in OCIO assets.Related: Vanguard sends urgent warning on major 401(k) growing problem

TheStreet aims to feature only the best products and services. If you buy something via one of our links, we may earn a commission.More often than we’d probably all like to admit, the garage ends up being a dumping ground for everything that we simply don’t have room for in the house. It seems to collect junk more than other parts of the home because, frankly, it doesn’t get many guests. Out of sight, out of mind, as the saying goes. No matter how hard we might try, most of us end up piling up items in the garage with full intentions to deal with them later. Unfortunately, later usually never comes, and we’re left with piles of ephemera strewn about the garage with nowhere to go. Of course, there’s always an outdoor storage shed as a possibility. While that’s certainly a viable option for some, not everyone has this opportunity. Those without a spacious yard or with strict HOA rules concerning external structures simply can’t have a storage shed on their premises. That means they either have to keep everything they’re storing within the walls of their home, or move it to another location off-property. This situation sometimes leads people to rent an off-site storage unit. In fact, this seems to be the answer for millions of people every year. However, with prices rising on everything from gasoline to housing, storage rent is not immune to this trend. In fact, off-site storage unit rents have increased by 4% over the past five years, and that doesn’t seem to be slowing down any time soon. That’s why taking your junk on the road is not necessarily a good answer to your clutter either. However, continuing to allow your things to pile up in the garage is no way to live. According to many studies, clutter breeds anxiety, forgetfulness, and even depression in some cases. It creates a constant stream of sensory overload in your brain, overwhelming you and creating a sense of mental fatigue that doesn’t dissipate just because you leave the room. Nevertheless, if you have a garage or other open floorspace where you can begin to itemize and organize your things, then you won’t have to suffer those negative consequences anymore. For many of us, it’s not about a lack of space; it’s about the inability to organize that space that causes problems. Thankfully, Walmart has one option that we think could offer the silver bullet, and it’s available at an incredibly low price at the moment.Workpro Metal Garage Storage Cabinet

Courtesy of Walmart

Check price at WalmartThe Workpro Metal Garage Storage Cabinet is the ideal way to start the process of finally organizing your garage. Storage cabinets like this offer a great solution for your disorganized garage. Made from sturdy rolled stainless steel, the cabinet is corrosion resistant and fully rustproof. It’s ideal for keeping in a garage where humidity and other moisture sources could damage wood or other lesser materials over time. It’s also got adjustable shelves to make organizing quick and easy. The doors can be locked in order to keep them secure at all times as well, giving you even more peace of mind. The cabinet measures 31.5 inches long by 15.75 inches wide by 71 inches high, making it large enough to fit plenty of items big and small. It’s relatively shallow though, so you can fit it against a wall without having it take up too much floor space. While intended for a garage, its sleek modern design would fit in almost anywhere, including a modern kitchen or home office. More garage storage optionsIf the Workpro Metal Garage Storage Cabinet isn’t the solution to all of your garage storage problems, then there are lots of other storage tools on the market. We found some at Walmart and Amazon that would make great partners to the aforementioned cabinet, and we’ve listed them here.Reibii Adjustable Storage Shelves

Courtesy of Walmart

Check price at WalmartWorkpro 5-Drawer Rolling Tool Chest

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Check price at WalmartNovolume Extra Large Garage Storage Shelves

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Check price at WalmartDuramax Rolling Sports Storage Rack

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Check price at AmazonFleximounts Overhead Storage Racks

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Check price at AmazonTheStreet Shopping is your guide for shopping insights and advice. We look beyond the price tag to find the best value in home, tech, and wellness gear based on product features and real-world use. Read more about our Editorial Standards and How We Choose Our Shopping Deals.

Palantir posted the highest revenue growth rate in its history in the first quarter of fiscal year 2026. U.S. commercial revenue jumped 133%. The company raised its full-year guidance by 10 points. By any operational measure, things are going well. And yet Alex Karp walked onto CNBC’s Squawk Box and started criticizing the entire foundation of the AI business model.He wasn’t talking about Palantir’s competitors in the traditional sense. He was talking about the companies whose technology his own platform runs on top of. “I’m not throwing shade at them,” he told viewers, “but something has gone completely wrong.”What Karp said about OpenAI and Anthropic on live televisionThe problem, in Karp’s telling, is tokens. The way OpenAI and Anthropic sell AI access, metered by token consumption, has created a dynamic he says enterprises are increasingly fed up with. “The basic view among enterprises in this country is I’m going to chillax and waste my time with tokens, I’m gonna get no value, and they’re gonna get my IP,” Karp told CNBC.When co-anchor Andrew Ross Sorkin said “that sounds like shade,” Karp pushed back: “No, no. This is reporting.”More AI:The new Chinese AI model rattling U.S. tech investorsAnthropic restores access to Mythos 5 for select organizationsSoftBank CEO offers stinging critique of Musk’s AI betHe said customers are shifting away from what he called “tokenmaxxing” toward open-weight models that deliver similar output at a fraction of the cost. The ROI conversation is changing. Enterprises are asking harder questions about what they are actually getting for what they are spending, and a lot of them are not liking the answer.Palantir’s stock rose 8% that day. Before the interview, the company had published a 9-point “AI sovereignty” manifesto on X, setting the philosophical stage for what Karp was about to say publicly.Why Karp says data ownership is the real AI fightThe deeper argument Karp made was about control. Enterprises and governments, he said, want to own their compute, their models, their data stack, and their alpha. The word he kept coming back to was ownership. “They want to know they own the means of production. It’s not being transferred to someone else.”That framing extended into territory that goes well beyond enterprise software. Karp said it would be “insane” to hand battlefield or government applications entirely over to AI labs, effectively outsourcing sensitive decisions to a small group of Silicon Valley companies operating by consensus.To illustrate where he thinks the market is going, Karp pointed to Palantir’s expanded partnership with Nvidia, announced the same week, to build custom AI models for U.S. government agencies. “What aligns me with Nvidia… is what the technical customers want, which is control over their compute, their models, their data stack and their alpha,” he said on CNBC.Palantir’s Q1 2026 numbers and what they say about Karp’s thesisKarp is making this argument from a position of real business momentum. Palantir’s Q1 FY2026 revenue came in at $1.63 billion, up 85% year over year, the highest growth rate in company history. U.S. commercial revenue hit $595 million, up 133%. Adjusted operating margin expanded to 60% from 44% a year earlier.On the earnings call, Karp said Palantir’s Rule of 40 score had hit 145%, which he called a feat matched only by Nvidia, Micron, and SK Hynix. Management raised annual revenue guidance to 71% growth, ten points above the prior quarter’s forecast. U.S. commercial remaining deal value, meaning the potential value of contracted business yet to be recognized as revenue, reached $4.92 billion, up 112% year over year.Token-cost fatigue is showing up at real companies. Uber capped employee spending on agentic coding tools, including Claude Code and Cursor, at $1,500 per month after burning through its AI budget in four months, according to 24/7 Wall St. That is exactly the dynamic Karp is describing. The token model works until it doesn’t, and for a growing number of enterprises, it has already stopped working.

Karp’s argument, if it holds up, has implications beyond Palantir’s own stock.Ludovic/Getty Images

The Palantir valuation problem Karp’s swagger can’t quite solveThe business is accelerating. The stock is down 28.67% year to date. Those two facts sitting next to each other tell you what the market’s actual concern is, and it isn’t whether enterprises want control of their data.Palantir closed at $126.79 on July 10 and trades at a forward P/E near 91. That multiple requires an enormous amount of future growth to be baked in and delivered. Even with 84.7% revenue growth, investors have spent most of 2026 asking whether that rate is sustainable or whether the stock got too far ahead of the business during last year’s AI enthusiasm.Michael Burry disagrees. Scion Asset Management disclosed a put position tied to 5 million Palantir shares in its Q3 2025 13F, filed November 3, 2025. At the time, that represented an underlying notional of roughly $912 million, as TheStreet reported. 13Fs don’t show strike prices, expiration dates, or whether the position is still open. But betting against $912 million worth of Palantir shares is not a casual trade.What Karp’s OpenAI and Anthropic critique means for AI investorsKarp’s argument, if it holds up, has implications beyond Palantir’s own stock. The token model underpins how OpenAI and Anthropic generate most of their enterprise revenue. If large customers are genuinely moving toward open-weight models and demanding more control over their infrastructure, that changes the growth assumptions for the closed-model AI companies more than the market has so far priced in.The counterargument is that Karp has an obvious commercial incentive to talk down token-based AI, since Palantir positions itself as the alternative. His numbers are real, but so is his motive. The enterprises he claims are frustrated may still be signing large contracts with OpenAI and Anthropic behind closed doors while also exploring Palantir’s approach on the side.What July 1 made clear is that the business model debate inside the AI industry is getting louder, and the people doing the criticizing are no longer just academics or short sellers. They are CEOs running companies posting 84.7% revenue growth, with enough market credibility to move their own stock 8% with a single television appearance.Related: Palantir doubles down on national security with Nvidia AI alliance

It’s safe to say that inflation in the U.S. this year felt a lot like a game of whack-a-mole. Just as one pressure point starts to ease, another pops up somewhere else. The turnaround many had hoped for never arrived. Instead, the Fed’s preferred inflation gauge, PCE, rose to 4.1% in May from 2.9% in February, according to CBS News, while core PCE remained stubbornly above the Fed’s target. However, the market’s primary catalyst, artificial intelligence, was supposed to swoop in and save the day like Superman. Many, especially those reading Nvidia reports like gospel, expected the AI boom to make the economy faster, smarter, and cheaper. Instead, according to a Business Insider report, Goldman Sachs warns it may first show up as another inflation shock, with Americans helping pay the bill through pricier software, power, and tech hardware.Why Goldman Sachs sees an AI inflation problem for Americans Goldman Sachs warns that the relentless AI buildout will come at a much higher cost to Americans in terms of inflation. What the AI buildout has done is stoke demand for memory chips, software, and electricity, among other things, amid supply constraints. In Goldman’s view, the pressure is showing up in the Fed’s preferred inflation gauge.Megan Peters, an economist at the bank, estimates AI is lifting U.S. core PCE inflation by about 20 basis points a year. By year-end, that drag could more than double, with the boost to core PCE reaching 50 basis points.The impact is far greater than the likely effect in Canada, Australia, Europe, the U.K., and Japan, where Goldman sees an average 10-basis-point increase.“While not completely negligible, these effects are far below the 50bp peak we estimate for U.S. PCE, suggesting that for the most part, AI-driven inflation is a U.S. story,” Peters wrote.The pressure stems from three major factors: soaring memory and software prices, and rising electricity demand.

Goldman Sachs says AI demand could add pressure to U.S. inflation.Patrick T. Fallon / AFP via Getty Images

How memory-chip prices are feeding the inflation warningThe first pressure point is memory, something iPhone fans are probably tired of hearing about, as are video gaming fans like me.“Unfortunately, price increases are unavoidable,” CEO Tim Cook said in an exclusive Wall Street Journal interview published on June 17, 2026.  More AI:The new Chinese AI model rattling U.S. tech investorsAnthropic restores access to Mythos 5 for select organizationsSoftBank CEO offers stinging critique of Musk’s AI betGoldman Sachs concurs with Cook that the tremendous demand for AI hardware is driving up the cost of key components, which flow into consumer technology, business software, and broader digital services.For example, Keepa data shows Corsair Vengeance DDR5 RAM 32GB on Amazon surged from about $110 to $415 over the past year, a nearly 277% increase.In a Bank of America note shared with me, analysts also say that memory now represents roughly 35% to 40% of cloud AI capex, two to three times the historical level.They also doubled down on Micron stock, assigning a $1,550 price target.That said, Goldman expects the pressure to peak before the end of 2026. Prices in that category could be rising at a 30% year-over-year pace by November.The U.S. is more exposed because software and accessories account for about 1% of PCE inflation, compared to less than 0.5% in other developed economies.Why software may become the next AI price shockThe second big inflationary shock comes from software, where AI is being layered into products that businesses and households already use.Once AI tools are a pivotal part of the whole package, the cost can be passed through in subscription prices rather than shown as a separate add-on.Taking Microsoft as a clear example, the tech giant recently moved Copilot deeper into Microsoft 365, while commercial suite prices are rising, including Office 365 E3 to $26 from $23 and Microsoft 365 E3 to $39 from $36 starting July 1, 2026, Agolution reported.Google made a similar move with Workspace, announcing that Gemini AI is now included in the Business and Enterprise plans. How data centers strain electricity costsGoldman Sachs’ third big inflation wave is electricity, and it’s probably the one that’s hardest to ignore. Naturally, AI needs a ton of data centers, cooling systems, and chips, as well as a power grid that’s capable of handling a much heavier load.The report identified that the average price of one kilowatt-hour of electricity in a U.S. city rose to $0.19 in May, up about 27% from May 2022, according to the Bureau of Labor Statistics. That adds another painful bill to an already uncomfortable stack.Goldman estimates data centers could account for about 11% of total U.S. power demand by the end of the decade, roughly double today’s roughly 6% share. Though it’s a huge challenge on its own, the AI buildout is happening at a time when energy markets are already tense, with oil prices still up sharply year-to-date amid geopolitical supply fears.The fragile ceasefire between the United States and Iran has now collapsed, reviving fears of another spike in oil prices after prices had declined over the past several weeks. However, over the long term, investors are latching onto the idea that AI will be disinflationary and boost productivity. Cathie Wood talked about it during ARK Invest’s January “In The Know” webcast. “Productivity-driven growth is associated with falling inflation,” she said.Nevertheless, Goldman’s warning is that the bill may come first, while the benefits arrive later.Related: Bernstein revamps gold price target on Fed-rate shift

Many people know that when they want to fill up their cars for less, the best place to head is Costco. In fact, if you’ve ever found yourself cursing the long lines at Costco’s fuel stations, you’re not alone. Thankfully, those extra-long hoses make it possible to fill your tank from either direction, allowing lines at the pump to move more quickly and reducing bottlenecks in certain spots.But most people know Costco isn’t the fastest place to fill up. Rather, they go there because it’s the cheapest. Costco routinely charges about 30 cents less per gallon than most competing fuel stations, reports CNN. At a time when gasoline prices are up 40.5% year over year, according to the most recent Consumer Price Index, those savings are significant.But Walmart may have found a way to challenge Costco’s dominance at the pump. And it’s using a tactic out of Costco’s playbook. Walmart+ changes the math at the pumpWalmart shoppers tend to be naturally budget-conscious. And many aren’t necessarily interested in a paid membership model, which is why they stick to traditional Walmart superstores instead of signing up to shop at Sam’s Club.But for frequent shoppers or those who prefer to take advantage of grocery delivery, a Walmart+ membership can be a smart investment. Related: Sam’s Club just made a holiday closure decision Costco didn’tFor $12.95 per month or $98 per year, Walmart+ members can enjoy perks like unlimited free grocery delivery on orders of $35 or more and savings of up to 10 cents per gallon at thousands of gas stations throughout the U.S.And thanks to that discount, Walmart may be able to undercut Costco on gas prices while driving more customer loyalty.During Walmart’s first-quarter 2027 earnings call, CFO John Rainey said Walmart+ membership fee revenue growth accelerated. “In this period of elevated gas prices, members are tapping into their fuel savings benefits even more today,” he added.Walmart also has a distinct advantage over Costco with regard to gas sales, in that shopping does not require a membership.People who come to Walmart for groceries or household items may be more inclined to fill up their cars because they’re there, regardless of whether they’re subscribed to Walmart+ and eligible for the 10 cents off per gallon. 

Walmart may be able to undercut Costco on gas prices while driving more customer loyalty.David Paul Morris/Bloomberg via Getty Images

Costco gas offers a huge benefit, even if it isn’t the cheapestWhile Walmart may technically win on price at the pump, it’s Costco that wins on quality. Costco gas carries the Top Tier certification. That means it uses five times the EPA-required detergent level, which is designed to help reduce deposits and keep engines cleaner over time.Walmart and Sam’s Club fuel generally meet the minimum EPA standards, which means it’s legally compliant and safe for vehicles. But it doesn’t offer quite the same level of quality and performance as Costco fuel. More Retail:Costco sees major shift in member behaviorRetail chain shuts all locations as legal changes hit industryCostco makes major investment in online shopping for membersOf course, that distinction is not surprising. Costco has made a point to emphasize quality as much as affordability with its Kirkland brand. So it stands to reason that the company would extend that approach to its Kirkland fuel stations.During Costco’s most recent earnings call, the company said it set an all-time record on gasoline volume during the first quarter of fiscal 2027. “The high consumer price sensitivity, which fueled these record volumes, also drove many members to use our gas stations for the very first time in the third quarter,” CEO Ron Vachris said. “We believe this will drive even greater loyalty with these members in the future as members who use our gas stations typically spend more with us in the warehouse.”All told, it may be possible to get cheaper gas at Walmart than at Costco. But it may require a Walmart+ subscription and willingness to accept fuel that’s acceptable instead of outstanding.Maurie Backman owns shares of Costco.Related: Costco reveals why Kirkland keeps beating name brands

TheStreet aims to feature only the best products and services. If you buy something via one of our links, we may earn a commission.Why we love this dealA portable Bluetooth speaker is something that can fit into almost every part of your life, especially if it’s super compact without sacrificing sound quality. It can easily offer background music while making dinner, make cleaning the house more enjoyable, or you can bring your favorite playlist to the neighborhood barbecue. It’s equally useful for camping trips, afternoons at the pool, picnics at the park, road trips, and weekends by the beach. In even smaller spaces like a dorm room, home office, or hotel room, a compact speaker can offer noticeably better sound than a phone or tablet, offering easy and high-quality music any time. Because they’re easy to carry from place to place, you don’t have to worry about making room to fit it in your bag, making it simple to provide an enjoyable atmosphere anywhere you go.The Ewa Mini Travel Speaker is a practical companion for anyone who loves listening to music, audiobooks, podcasts, or someone who wants to watch shows on their laptop or phone with better sound quality. This tiny little speaker really “packs a punch,” according to reviews, making it the perfect option on sale for just $16.Ewa Mini Travel Speaker, $16 (was $20) at Amazon

Courtesy of Amazon

Shop at AmazonWhy do shoppers love it?Portability is the biggest strength this speaker has, measuring just 1.89 inches in diameter. It’s super easy to throw into any bag you’re carrying, or throw it into the carrying case and use the hook to hang it off your bag. It weighs just seven ounces, so it can easily hang from a belt, backpack strap, or purse strap without ruining your bag. The high-performance driver and passive bass radiator produce clear audio at a high volume for the size, and can be connected to any Bluetooth-compatible device to play music, podcasts, internet radio, and other audio from your device. Related: Amazon has active noise-canceling Bluetooth earbuds for just $28 that have over 26,000 5-star ratingsThe carrying case makes it easy to carry, but it also protects the speaker during travel, making it easy to pack and forget about it until it’s needed without having to worry about damaging such a small device. It’s rated IP67 for water resistance, offering an easy option for poolside, beachside, or even in the shower, with built-in rechargeable batteries that provide up to eight hours of playback time. It’s convenient to plug into your car charger while you drive, offering up to three hours of listening time on 30 minutes of charge. The pros and cons of this dealProsUltra-portable: At just seven ounces and less than two inches big, this speaker is super portable and easy to hang off your bag with the included carrying case and metal hook. IP67 waterproof rating: This speaker is useful for the pool, beach, or bathroom.Cons No built-in microphone: It does not support hands-free calling. Shorter battery life: At eight hours of listening time at 50% volume, this speaker can’t last all day, but it can easily be plugged in and charging while it’s being used if you have a portable charger. One reviewer said, “I’m amazed at how tiny this is, considering its powerful sound. It’s perfect for traveling, the case has holes in the top so you can leave it in there if you wish. It’s simple to connect, and it doesn’t distort the sound even at full volume. For the price, it’s a great deal.”Another one said, “This is an amazing little Bluetooth speaker that packs a heavy punch for its price. This little guy is very loud and has a small subwoofer at the very bottom of it. Its design is sleek, and the quality is great. It comes with a water-resistant case, which is also sleek in design. The fit is amazing, it sits neatly inside its case and still can be used, and has the same power even while playing from its case.”Shop more dealsDbsono Portable Mini Speaker, $15 (was $25) at AmazonOraolo Portable Bluetooth Speaker, $20 (was $90) at AmazonSoundcore Select Mini Speaker, $22 (was $25) at AmazonWhether you’re looking to use it around the house or go on a multi-day excursion, the Ewa Mini Travel Speaker is ready to do it all. The small size and lightweight design make it one of the easiest portable speakers to take with you, and the sound output is loud enough for a group of people without distortion. Right now, shoppers can get this mini Bluetooth speaker for just $16.

Delta Air Lines just posted one of its strongest quarters in years. But CEO Ed Bastian did not spend his earnings call only celebrating record revenue. He also delivered a blunt message to the rest of the airline industry, especially the budget carriers that built their entire business around cheap fares.Speaking on Delta’s (DAL) June quarter 2026 earnings call on July 10, 2026, Bastian said the math no longer works for low-cost and ultra-low-cost airlines. In his view, the old playbook of winning customers through rock-bottom prices is now a losing strategy.In Bastian’s words, there is “nothing to be gained by trying to grow in that environment.” Instead, he argued that airlines need to focus on increasing revenue per customer rather than adding more customers at lower fares.For travelers, it signals that cheap flights may become harder to find, while airlines like Delta lean further into premium seating, loyalty perks, and service quality rather than price wars.Airline fares have been under pressureAirfares across the industry have not kept pace with the broader economy. Bastian pointed out that even after several recent rounds of price hikes, airfares remain 10 to 15 percentage points below overall inflation since the COVID pandemic. In simple terms, flying is still cheaper today than it was before 2020.At the same time, fuel is more expensive and so is labor. Expenses tied to technology, airport fees, and new aircraft have also increased.That combination has squeezed every airline, but Bastian argued it has hit low-cost carriers the hardest because their entire model depends on razor-thin margins.Delta’s second quarter results show the pressure that higher fuel prices can create.The company said its fuel expense more than doubled to $4.4 billion in Q2, up nearly $2 billion from the year-ago period. Despite that hit, Delta still posted a pretax profit of $1.4 billion and an operating margin of 9%, better than the guidance it had given investors at the start of the quarter.Delta Air issues three warnings for budget carriersBastian’s comments on the call boil down to three connected points.First, he said the lowest-priced airlines need to raise fares by roughly another 5% just to break even at today’s fuel prices. That is not a small ask for carriers that already compete almost entirely on price.Second, he said the low-cost airlines’ tools that once helped them undercut everyone else are gone. A decade ago, some budget carriers used fuel hedges, or contracts that locked in lower fuel prices, to protect themselves during price spikes, and used that advantage to grab market share. More Airlines:Another low-cost airline leaves 6 cities, refunds availableDelta Air Lines cuts two flights forever, refunds availableSpirit Airlines won’t be coming back, and that costs flyers moneyBastian said none of that exists anymore. Fuel hedges have disappeared industrywide, and costs for labor, airports, technology, and planes have all reset higher for everyone, erasing the cost gap that low-cost carriers used to rely on.Third, and most directly, Bastian said chasing market share through low prices no longer makes sense. 

Delta CEO Ed Bastian is focused on growing premium customers.Al Seib/Getty Images

The numbers back up the shiftDelta’s Chief Commercial Officer, Joe Esposito, added hard evidence to Bastian’s warning. He noted that ultra-low-cost carriers as a category have already cut their capacity by about 30% industrywide. In plain terms, budget airlines are flying far fewer seats than they used to, a sign that some of them are struggling to make their business model work at all.Related: Why Delta trades less like an airline and more like a loyalty businessDelta, meanwhile, is leaning into the opposite strategy. The company said diverse revenue streams, things like premium seating, its loyalty program, and its partnership with American Express, made up 61% of total revenue in the quarter, up from 59% last year. Premium and loyalty revenue each grew nearly 20%. Delta also said it expects to earn about $9 billion this year from its American Express partnership, up 10% from 2025.Bastian stated:”Card spend has grown double digits for the past 7 quarters with particular strength among our premium reserve cardholders. With continued momentum in both new card acquisitions and spend, we expect remuneration of $9 billion this year, up 10% over 2025.”What it means going forwardBastian’s message was less about predicting doom for any single competitor and more about describing a structural shift he believes is already underway. Airlines that built their identity around being the cheapest option are now stuck between rising costs and fares that still lag inflation.For now, Delta is betting that customers will keep paying more for a better experience rather than chasing the lowest fare. Whether the rest of the industry can adjust fast enough may determine which low-cost carriers are still around when the next fuel spike hits.Related: Raymond James makes surprising call on Delta Air Lines

Dick’s Sporting Goods has spent the past year proving it can absorb a struggling retailer and make it stronger. Now, a very different kind of bankrupt retailer is presenting the company with a fresh opportunity, and this one did not even require a purchase agreement.The chain best known for footwear walls and House of Sport megastores is watching a specialty outdoor rival collapse under its own debt. That collapse is freeing up store leases, brand relationships,, and customer spending, putting Dick’s (DKS) in a strong position to gain traction across markets and regions. Here is what happened, and why it matters for investors watching DKS stock.Dick’s momentum builds heading into back to schoolDick’s enters this moment from a position of strength. In the first quarter of 2026, the company posted consolidated net sales of $5.16 billion, a 62.7% increase driven largely by its Foot Locker acquisition and a 6% comp increase at its core DICK’S banner.Comparable sales at the DICK’S business reflected a 5.5% rise in average ticket and growth across footwear, apparel, and hardlines.“These strong comps were on top of a 4.5% increase last year and a 5.3% increase in 2024 as we continue to gain market share,” said Dick’s CEO Lauren Hobart.During the earnings call, the company management told analysts the company saw no signs of consumers trading down, even amid a mixed macroeconomic backdrop. It also raised the low end of its full-year comp sales guidance for both the DICK’S and Foot Locker businesses.That financial cushion matters, because the retailer is now positioned to lean into a very different kind of growth opportunity: absorbing the fallout from a rival’s bankruptcy.

Dick’s Sporting Goods CEO Lauren Hobart is optimistic about consumer spendingJamie McCarthy/Getty Images

West Marine’s Chapter 11 filing shakes up outdoor retailWest Marine, the country’s largest boating and marine supply retailer, filed for Chapter 11 bankruptcy protection on May 17 in the U.S. Bankruptcy Court for the District of Delaware. The retailer, which traces its roots to a rope supply shop founded in California in 1968, had grown to roughly 200 stores across 34 states and Puerto Rico before the filing.It entered bankruptcy with about $21.5 million in cash against $549.2 million in outstanding debt, and Garmin International was its largest unsecured creditor, owed $8.57 million. As part of a prenegotiated restructuring supported by 96.2% of its term loan lenders, West Marine is closing 59 of its roughly 200 locations across 23 states, about 30% of its store base. Florida will lose eight stores and Michigan six, the hardest hit states in the closures.Related: Outdoor retail giant closes 59 stores in Chapter 11 bankruptcyWest Marine said it remains open for business and expects no disruption to daily operations, adding that it will continue to pay employees and honor customer warranties and returns throughout the process. Notably, it cited supply chain disruptions, extreme weather during peak boating season, and shifting consumer spending habits as key reasons for the filing. Industry outlet Shop Eat Surf Outdoor similarly noted that inflation strained discretionary spending and several rough summer seasons contributed to the retailer’s decline.Why the timing favors Dick’s Sporting GoodsDick’s does not compete directly with West Marine in boat parts or marine electronics. But the ripple effects still favor the bigger, healthier retailer in a few clear ways.First, real estate. As West Marine exits leases in coastal and lake markets, Dick’s continues to expand its House of Sport and Public Lands banners and has plans to open about 14 more House of Sport locations and about 22 more Field House locations in 2026.That expansion appetite puts Dick’s in a strong spot to pick up well-located space as West Marine vacates it, though the company has not publicly tied its real estate plans to West Marine specifically.More Retail:60-year-old retailer closes over 240 locations across 35 statesRetail giant exits U.S. fashion after multi-million-dollar scandal79-year-old fast-fashion retailer closes 128 storesSecond, category overlap. Dick’s sells fishing, kayaking, paddleboarding, and watersports gear through its core stores and through its Public Lands banner, which absorbed the 2023 Moosejaw acquisition. It is worth noting this overlap is based on Dick’s known store assortment rather than a specific company statement tying it to West Marine’s closures. Some of the demand West Marine leaves behind in fishing and watersports accessories may land with broader outdoor retailers like Dick’s, though that is a reasonable inference rather than a confirmed outcome, and it will not fully replace West Marine’s boating focused assortment.Third, balance sheet strength. Dick’s consolidated net sales for fiscal 2025 rose 28.1% to $17.22 billion, up from $13.44 billion the prior year, driven largely by the Foot Locker acquisition. The core DICK’S business posted record sales of $14.1 billion with comparable sales up 4.5% for the year. That combined financial footing gives Dick’s more leverage than a distressed competitor when negotiating with vendors, including marine electronics suppliers like Garmin, which are reassessing how much business they want tied to West Marine.Each time a specialty player shrinks, generalists with strong balance sheets and real estate flexibility, like Dick’s, tend to pick up the largest share of the leftover business.None of this turns Dick’s into a boating retailer overnight. But between prime real estate, adjacent category demand, and improved vendor leverage, West Marine’s troubles give Dick’s another small but real tailwind heading into the back half of 2026.Related: Dick’s Sporting Goods CEO sees writing on the wall for consumers