The Street

SpaceX (SPCX) didn’t enter the market quietly.Its blockbuster debut has instantly made it one of the most-watched companies on Wall Street, with investors chasing a rare public-market play on rockets, satellites, Starlink, and Elon Musk’s next frontier.The first major analyst calls are landing after the 25-day IPO quiet period, and Goldman Sachs’ hot take stands out.The bank leans on far bigger ideas than just launch revenue, seeing SpaceX’s AI revenue explode over the next several years, turning AI into a potential centerpiece of the company’s long-term valuation story.So, as Wall Street came for the space race, Goldman Sachs is pointing investors toward the relentless AI race.

Goldman Sachs updates its SpaceX stock outlook after the company’s blockbuster IPO Jean Catuffe/GC Images

Latest SpaceX developments investors are watchingSpaceX’s IPO became the headline event:Reuters said SpaceX raised $75 billion in its June IPO, selling shares at $135, making it the largest IPO on record. The listing also pushed Elon Musk’s net worth above $1.1 trillion.Nasdaq-100 entry came fast:Reuters reported SpaceX is set to join the Nasdaq-100 just 15 days after debut, with JPMorgan estimating about $4.3 billion in passive inflows.Wall Street is already split: Goldman set its SpaceX target at $205, while Morgan Stanley went much higher at $300, creating a valuation gap of more than $1 trillion between the lead underwriters, according to Morningstar. The AI angle got louder:TheStreet reported a $30 billion Google compute deal, including roughly 110,000 GPUs, deepening the Starlink-plus-AI infrastructure story.
Sources: Reuters, MarketWatch, TheStreet.
Goldman says SpaceX is not just a rocket stock anymore Goldman Sachs’ SpaceX note makes it clear that the company’s valuation story is no longer just limited to launches, Starlink subscribers, or Elon Musk’s space ambitions. 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 betIn fact, Goldman sees SpaceX as a future AI infrastructure giant, with space-based computing becoming a critical part of its bull case.The bank reportedly set a $205 price target on SpaceX. Based on the latest quoted price of $160.42, that implies over 27.8% upside from current levels. Though that raises eyebrows for sure, the target is still considerably below Morgan Stanley’s reported $300 target.Though Goldman’s target may appear to be a lot more restrained, according to MarketWatch, Goldman expects SpaceX to double sales this year and reach $352 billion in adjusted EBITDA by 2030. On top of that, the bank expects free cash flow to turn positive by 2031, years before Morgan Stanley’s reported 2035 timeline.According to Reuters, citing the Financial Times, Goldman expects SpaceX’s AI sales to skyrocket from $3.2 billion in 2025 to $322 billion by 2030, a roughly 100-fold jump. Additionally, it projects that total revenue rose from $18.7 billion to $474 billion over the same period.Those lofty numbers are attributed to SpaceX’s tremendous platform that layers in launch capacity, satellite manufacturing, Starlink distribution, xAI and orbital data centers.At the same time, though, that’s also where the risk sits.SpaceX still needs to scale up Starship, prove space-based AI compute, keep Starlink growing, manage intensive capital needs and avoid regulatory setbacks.Goldman is bullish, but clearly the burden of proof is enormous: SpaceX has to become much more than the company investors thought they were buying at the IPO.What SpaceX investors are watching nextFor SpaceX investors, it’s just the start of the next test.The first earnings report may matter even more, which is expected to drop in late July or August. It offered investors the first real look at SpaceX’s growth, margins, AI spending, and cash burn after the IPO. Moreover, it could also trigger the first big lockup-related share release, depending on the company’s stock performance and other conditions.Then comes execution.Reuters reports that SpaceX is looking to demonstrate space-based AI computing by late 2027, with the first AI satellite expected to use Nvidia chips and computing power comparable to a GB300 rack. Moreover, Starship remains critical to that story because lower launch costs are needed to make Starlink expansion and orbital AI compute work at scale.Hence, even though SpaceX has enormous upside, the stock now needs proof that its AI future is more than just a valuation story.For perspective, SpaceX’s valuation looks remarkably extreme across virtually every metric, according to Seeking Alpha.If we look at the EV/sales metric, which compares total enterprise value to revenue, it sits at 110.2 times trailing sales and 57.8 times forward sales, meaning investors are paying incredibly high multiples for each dollar of sales the company dishes out.Moreover, the price/sales ratio, which looks only at equity value relative to revenue, is at 26.4 times trailing sales and 57.4 times forward sales, suggesting the stock price is baking in years of growth.That means investors are currently paying for a multi-year story around Starlink, launch dominance, Starship economics, and orbital AI.At this valuation, SpaceX needs almost flawless execution, massive margin expansion and no major capital-market hiccup.Related: Nvidia rivals get a rare break in AI race

Last year, the U.S. government allowed the $7,500 tax credit for new electric vehicles and the $4,000 credit for used ones to expire at the end of September, leading to an inflated buying rush through the first three quarters of the year, followed by a dramatic drop-off in the final quarter. U.S. EV market share fell to 5.7% in the fourth quarter of 2025, down from 8.7% a year prior and 10.5%, the all-time high hit during the third quarter, according to CarEdge.Meanwhile, in the European Union, battery electric vehicles accounted for 20% of all new passenger car registrations in January 2026, up from 17% a year prior. That is also double the market share the 27-country bloc reported three years earlier, according to the European Alternative Fuels Observatory. Back in the U.S., the decline in demand has endured through the first half of the year, despite elevated gas prices caused by the Iran War making EV purchases more financially attractive. So what gives?Well, according to injury lawyer Brian White, EVs are still way more expensive than their internal combustion cousins, and the extra costs don’t stop at the sticker price.EVs have extra costs ICE vehicles don’tIt’s not like Americans are completely against electrified vehicles. When combined with plug-in hybrids, electrified vehicle sales represent 20% of the total market, according to Edmunds. While that pales in comparison to the 69% market share in the EU, one-in-five isn’t a bad ratio. But one of the biggest issues with EVs is that they get old fast. Much faster than gas-powered vehicles. The average 5-year depreciation cost across all vehicle types is around 46%, according to Recharged, but recent studies show EVs lose around 60% of their value over that time period. Purely gas vehicles typically lose between 40% and 50% over the first five years. However, the financial ramificaitons of that depreceiation is somewhat offset by studies showing that EVs typically cost between 35% and 50% less in routine maintenance since there is no need for oil changes, exhause repairs on any of the multitude of other issues that come with internal combustion engines. EV owners typically spend only between $150 and $300 a year on basic service, compared to between $900 and $1,800 for gas-powered vehicles. One of the biggest causes of depreciation for EVs is rapid tech turnover. With all of the technology powering them, EVs become outdated faster, according to White. EVs are also 20% more expensive to repair after a collission than gas powered vehicles.

Americans have cooled on EV purchases in 2026.Scharfsinn86 / Getty Images

Which states sell EVs the cheapest?Purchasing and owning an EV is still more expensive that a gas vehicle, so it’s no wonder that there is some hesitancy from most U.S. consumers. That is where the tax credit was supposed to com in, pushing potential EV purchasers worried about the added costs over the line. There was so much demand ahead of the end of the tax credits that J.D.Power data from last year showed U.S. EV transaction prices briefly fell below gasoline vehicles for the first time. As recently as 2023, EVs closing costs were $16,000 higher.But now that the federal tax credit has expired, 17 U.S. states continue to offer state tax incentives ranging from $1,500 in Rhode Island to $7,500 in Oregon and Maine. However, 40 states impose higher annual registration fees on EVs and some hybrids to offset lost gas tax revenue. Those fees range from $50 in Hawaii and South Dakota to $260 in New Jersey.California and Alaska ended their EV tax credit programs while Maryland, Montana, New Hampshire, New Jersey, Pennsylvania, Rhode Island, Texas, and Vermont introduced new EV registration fees. Tennessee, Kansas, Indiana, Nebraska, Wisconsin and North Carolina have all increased their fees. Eleven states offer EV purchase incentives and impose higher registration fees than those applied to gas vehicles. Related: Ford begins testing tech that will change Americans’ minds about EVs

Americans collectively owed $1.252 trillion in credit card debt at the end of the first quarter of 2026, according to the Federal Reserve Bank of New York’s Quarterly Report on Household Debt and Credit, released May 12.The numbers reveal how families are covering the widening gap between income and expenses, and why revolving interest charges have become a drain that compounds month after month.The question is no longer whether credit card debt is rising, but how much that debt costs cardholders each month it goes unpaid, and which repayment strategies analysts say work.American credit card balances reached $1.25 trillion in first quarterAmericans’ $1.252 trillion in credit card debt in the first quarter of 2026 was down from the $1.277 trillion record set in the fourth quarter of 2025, the Federal Reserve Bank of New York reported. That total represents a 5.9% year-over-year increase, even after a seasonal $25 billion decline from the fourth quarter of 2025. The average individual cardholder balance stood at $6,519 in the first quarter, a 2.3% increase from $6,371 one year prior, according to LendingTree’s 2026 Credit Card Debt Statistics report.More Personal Finance:Bank of America offers critical debt elimination planFidelity challenges long-standing retirement savings ruleGallup data expose record financial anxiety in the U.S.At the roughly 21% national average annual percentage rate reported in the Federal Reserve’s G.19 consumer credit report, a $6,500 revolving balance generates about $114 in interest charges every month. Minimum payments on a balance of that size typically cover little more than the interest itself, leaving the principal nearly untouched and stretching the payoff timeline across years or even decades.More than half of consumers now rely on credit cards for essentialsThe growth in balances is not driven primarily by discretionary spending. A March 2026 survey of 2,000 consumers by the Achieve Center for Consumer Insights found that 53% of American consumers carry credit card balances to cover essential expenses, with 25% holding that debt for six months or longer.Austin Kilgore, analyst for the Achieve Center for Consumer Insights, cautioned that growing credit card use isn’t a sign of economic confidence.Rising credit card usage does not signal financial strength. For many, it’s a coping mechanism to make ends meet.The same survey revealed that 57% of consumers estimate it would take six months or more to pay off all short-term unsecured debt, up from 55% in the prior edition, the Achieve Center noted. Lower-income households are under the most pressure, with 35% of consumers earning below $50,000 reporting a worsening financial situation over the past year, compared with 27% of those above that threshold, the survey found.

More Americans are relying on credit cards for everyday essentials, highlighting persistent financial strain and growing challenges in paying down debt.FG Trade/Getty Images

High interest rates trap borrowers in a compounding debt cycleThe Federal Reserve held its benchmark rate steady at its January, March, April, and June 2026 meetings after three late-2025 rate cuts, meaning the relief many cardholders anticipated from monetary policy has not materialized. The average annual percentage rate for accounts carrying a balance stood at 21.52% in the first quarter, down slightly from 22.30% in the fourth quarter of 2025, the Fed’s G.19 report showed.New card offers carry even steeper rates, with the average annual percentage rate on a new card reaching 23.79% and some offers advertising ranges as high as 27.40%, LendingTree’s tracking data showed.”Whether we’re talking 21%, 20%, or 19%, these are all high rates,” Ted Rossman, senior industry analyst at Bankrate, wrote in the firm’s January 2026 credit card interest rate forecast.Delinquency rates improved, but gains are uneven across income groupsThe share of outstanding balances at least 30 days past due fell to 2.94% in the fourth quarter of 2025, the sixth consecutive quarterly decrease and well below the long-term average of 3.70%, the Federal Reserve reported.The improvement masks a divide that New York Fed researchers described as a K-shaped pattern, where higher-income households pay down balances on schedule while lower-income borrowers fall further behind. Among those who reported difficulty keeping up with payments, 64% said their income does not cover their expenses, according to the Achieve survey.Experts recommend targeted payoff strategies for revolving balancesFinancial professionals have outlined several approaches to reduce the interest burden on revolving balances. Bank of America’s Better Money Habits guide walks readers through two strategies: the high-rate method (also known as the debt avalanche), which targets the highest-rate card first, and the snowball method, which prioritizes the smallest balance to build momentum.Rossman noted that only 48% of cardholders with a balance have a plan to pay it off, a gap he called “alarming but not surprising” in Bankrate’s 2026 Credit Card Debt Report.He recommended that borrowers contact their card issuers directly to negotiate lower rates, particularly if their credit scores have remained stable.Balance transfer cards offering 0% promotional rates for 12 to 21 months remain an option for borrowers with good credit, though transfer fees of 3% to 5% apply, and the standard rate resumes once the promotional period ends. The National Foundation for Credit Counseling offers debt management plans through certified counselors nationwide. Participants in the NFCC’s new Debt Reduction Options program, launched in 2026 with FICO’s Score Open Access, shed an average of $8,000 in revolving debt and saw their credit scores rise by roughly 50 points over 18 months. Related: Credit card debt dips but the real story is much worse

A plant closure not only changes a company’s manufacturing map but also reshapes the local job picture in a single city, especially when the facility has operated as part of a larger food or beverage production network.TheStreet has reported pressure across several industries, from food manufacturers and meat processors to distributors and logistics companies, as facilities have closed, production has shifted, or work has been moved elsewhere. The reasons differ from company to company, but the worker impact is often similar, with hundreds of employees at risk at once.Now, one of the biggest names in beverages is moving forward with a long-planned plant closure.Coca-Cola closes Massachusetts bottling plantThe Coca-Cola Company is closing its Northampton, Mass., bottling plant, a move expected to affect 175 workers.A Massachusetts WARN listing shows the company filed notice on June 15 tied to the Northampton facility in the state’s western region. The job cuts are expected on August 15 and November 30.More Layoffs:JPMorgan Chase pushes fraud division layoffs, despite rising revenuesAnother major fintech firm cutting 10% of its workforceReal estate tech firm exits key hub, cuts 100s of jobsThe plant bottled Coca-Cola’s non-carbonated beverages, including Minute Maid and Powerade, according to Food Dive.The company said employees have known about the plans for some time and that formal notices were being issued to provide advance notice.Coca-Cola also said it is working with the state to help identify new job opportunities for affected workers.

Coca-Cola closes plant in Massachusetts.Justin Sullivan / Getty Images

Coca-Cola plant closure first announced in 2021The Northampton shutdown is not a sudden decision. Coca-Cola first announced in 2021 that it planned to close the Northampton plant in 2023, but the decision was later pushed back.The company then said that the closures were part of an “asset right” strategy to ensure Coca-Cola had the right resources as it transformed its beverage portfolio to meet changing consumer and customer needs.The closure is also not happening in isolation. Food Dive reported that Coca-Cola first announced in 2021 that it planned to close the Massachusetts plant along with a bottling facility in American Canyon, Calif., as part of a broader bottling-network reset. More recent WARN entries show additional movement across the Coca-Cola system.A California WARN entry for Reyes Coca-Cola Bottling lists a permanent closure in Ventura affecting 85 employees, with a layoff date of July 10, 2026. In Michigan, a WARN notice for Great Lakes Coca-Cola Distribution lists a permanent closure at its Lansing site affecting 161 workers, with 62 employees separated and 99 reassigned as of April 3, 2026. Together, those notices show that job impacts tied to Coca-Cola’s broader bottling and distribution network have continued even as the company’s consumer brands remain highly visible on store shelves, in restaurant fountains, and in vending machines.Moreover, the Northampton facility also carries local importance beyond employment.Food Dive reported that Coca-Cola was Northampton’s largest water user, and the planned closure had drawn concern from community members worried that the loss of that usage could affect utility costs.That gives the shutdown a broader local impact. A closure can affect workers directly through job losses, but it can also affect communities that have built infrastructure, set tax expectations, or built utility systems around large industrial users.Coca-Cola grows while reshaping operationsThe company’s results show the shutdown is not occurring amid weak overall demand. Coca-Cola reported that first-quarter net revenue rose 12% to $12.5 billion, while organic revenue increased 10% and global unit case volume grew 3%. “Our performance this quarter reflects our unwavering focus on staying close to the consumer, executing locally and managing complexity,” said Henrique Braun, CEO, The Coca-Cola Company.The company also said its 2026 outlook assumes the pending sale of Coca-Cola Beverages Africa will close in the second half of the year.A reminder that Coca-Cola is still reshaping parts of its bottling and operating structure. That makes the Massachusetts closure part of a more complicated story.Together, they make the Northampton cuts part of a more complicated corporate story.Coca-Cola is not closing the plant because the brand has lost its place with consumers. It remains one of the most recognizable beverage companies in the world, with products that fill grocery aisles, convenience stores, restaurants, stadiums, vending machines, and fast-food fountains.Instead, the plant closure points to a different issue: large food and beverage companies are still reworking their manufacturing and bottling networks even when sales remain strong.Those changes can help companies simplify operations, shift production, reduce costs, or focus on higher-growth products. But for the employees, it means more complexity and the struggle to find a new job.Related: Iconic denim brand closes facility, cuts 303 jobs

Tesla has spent months pushing employees to use artificial intelligence as aggressively as possible. The company was tracking which engineers consumed the most compute, running internal promotions, and encouraging staff to experiment freely with AI tools. Leadership sent company-wide emails urging workers to try new platforms.Starting July 6, Tesla is capping each employee’s spending on third-party AI tools at $200 per week, with anything above that requiring manager approval, according to an internal memo first reported by The Information. Some engineers had been running up thousands of dollars in weekly token bills.Why Tesla reversed course on employee AI spendingOver the past six months, Tesla leadership worked to consolidate employee AI usage onto a company-wide platform with approved models and security policies. Teams built leaderboards ranking staff by token consumption. Musk himself sent a company-wide email encouraging engineers to try Composer, xAI’s coding tool. Heavy usage was the goal, and some teams took that seriously enough to compete over the metric.When usage-based billing makes the cost of every prompt visible at the individual level, the math changes fast. Some Tesla software engineers were consuming thousands of dollars’ worth of tokens in a single week. That is the kind of number that gets flagged in a finance review quickly. Management decided the spending needed a ceiling.More Tesla:Tesla faces lawsuit from family of victim killed in Texas home crashWhy a fatal crash threatens Tesla’s stockTesla stock has a SpaceX problem, veteran analyst saysThe timing matters. Musk has staked Tesla’s long-term valuation on deploying AI at scale across its Robotaxi network and Optimus humanoid robot. Tesla’s revenue has mostly stalled over the past two years, which puts the AI story under more pressure than most investors appreciate.The Grok exemption and what it says about Tesla’s AI strategyThe cap does not apply to beta versions of xAI products, including Grok and Composer, xAI’s coding tool. Engineers who run compute-heavy sessions on Claude will burn through their $200 weekly allowance quickly, while Grok and Composer carry no budget counter.The problem is that Grok has not won over Tesla’s engineering staff. Four people familiar with internal usage told Electrek that employees broadly prefer Anthropic’s Claude for day-to-day development work. The preference held even through a sustained internal promotion campaign that included personal sessions from xAI product leads.Grok’s track record inside Tesla has been bumpy. Electrek reported last year that Tesla’s Grok in-car integration failed to interface with the vehicle’s own functions: the chatbot could not talk to the car it was embedded in. Musk acknowledged in March 2026 that xAI “was not built right first time around” and that the company was being rebuilt from scratch. That admission came six weeks after Tesla had committed $2 billion of shareholder capital to the venture.The spending policy may not change which tools engineers actually reach for. A financial penalty on Claude still leaves Grok needing to win on performance, and so far it has not done that either.

The spending policy may not change which tools engineers actually reach forSullivan/Getty Images

Tesla is cutting individual AI spending while tripling corporate AI investmentThe $200 cap is easy to misread. At the same time Tesla is limiting individual employee spending, the company has dramatically increased its corporate-level AI investment. Tesla raised its 2026 capital expenditure guidance to over $25 billion, nearly tripling the prior year’s allocation, Seeking Alpha noted. The money is being directed toward computing infrastructure, robotics, and autonomous driving.Tesla still wants AI at the center of the business. The cap redirects spending rather than cutting it: away from engineers running up bills on third-party tools and toward the infrastructure bets that actually touch the product.SpaceX, meanwhile, is reportedly preparing to acquire Cursor’s parent company Anysphere in a deal valued at roughly $60 billion, which would fold one of the most widely used AI coding tools directly into the broader Musk ecosystem. If that deal closes, Tesla engineers who reach for Cursor would effectively be using a Musk-owned product. That deal is separate from Tesla’s employee cap, but it adds context to the direction Musk is steering the AI stack across his companies: inward, not outward.Tesla is not the only company clamping down on employee AI costsThe Uber comparison is the most direct. Uber had encouraged employees to use AI without restrictions, then burned through its entire 2026 AI budget by April and responded with a $1,500 monthly cap per tool per employee. Microsoft canceled Claude Code licenses across its Experiences and Devices division partly due to cost. Meta, Amazon, Walmart, and Coinbase have all introduced similar limits or directed staff toward lower-cost models.The era some in the industry have started calling “tokenmaxxing,” meaning indiscriminate burning of AI tokens to create an appearance of productivity, appears to be giving way to a phase of active cost metering. On July 1, Palantir CEO Alex Karp appeared on CNBC’s Squawk Box and argued that the token economics underpinning the AI industry have broken down as costs have spiraled.For Tesla, a $200 weekly cap is a small number against the company’s overall scale. But the speed of the reversal tells investors something useful: the AI spending picture can shift very fast, even inside companies most publicly committed to the technology.Related: Amazon joins Microsoft in sending shocking message to employees

Walmart (WMT) looked unstoppable this spring. But by early July, its performance had significantly declined.The retail giant’s shares have fallen from a 52-week highnear $135toabout $112. The stock is now down for the year, even as the broader market keeps climbing.A drop like that usually leaves Wall Street silent. However, Jim Cramer did the opposite.The CNBC host captured his read on the sell-off in a single word, and it’s one that long-term investors will want to consider before they write the stock off.Jim Cramer calls Walmart stock sell-off “excessive”Cramer’s one-word verdict on Walmart stock? “Excessive.”That’s how Jim Cramer described a name he believed had dropped too far and too fast. Walmart stock was down5% at one point and closed downabout 3.9% that day, according to Yahoo Finance.Cramer dismissed the argument that cheaper gas would pull value shoppers away from Walmart, calling that idea “nonsense.”His reasoning was simple. The stock had fallen about 26 points from its high and was trading near 37 times earnings. That’s a drop he said “feels excessive.”Cramer added that rival retailer TJX’s decline looked just as excessive, the Foreign Policy Journal reported.

Walmart shares fell from record highs, and Jim Cramer says the sell-off went too far.Marvin Samuel Tolentino Pineda / Getty Images

What triggered Walmart’s slide from record highsWalmart’s trouble began with an earnings report that the market did not like.According to CNBC, on May 21, the company reported first-quarter fiscal 2027 results. The revenue beat expectations, but profit only met them. Walmart’s U.S. comparable sales also rose 4.1%, and e-commerce jumped 26%, based on Walmart’s earnings release.More Retail Stocks:Coca-Cola’s new flavors reveal larger strategyWalmart quietly built a $6 billion business off its shoppersNike unsteady as new legal fight brewsThe problem was guidance. Management left its full-year outlook unchanged instead of raising it. That forecast also came in below Wall Street’s estimates, SEC filings show.Rising fuel costs were another worry. They cut into Walmart’s distribution and fulfillment expenses. It was a roughly $175 million hit that affected shoppers’ budgets, too.Even with the stock already trading near 48 times earnings, the news sent shares down about 7.3% in a single session, TradingView noted. Consequently, Walmart closed at $121.34.The bull case Cramer sees in Walmart stockCramer’s confidence rests on a business that kept delivering while the stock fell.According to Insider Monkey, he noted Walmart matched expectations on U.S. comparable-store sales and grew earnings 8% compared to last year.Related: Walmart figured out how to sell you to advertisers for $6 billionCramer’s main point is that Walmart tends to pull in customers from weaker retailers when household budgets tighten, turning downturns into market share.Why Cramer still backs Walmart:Same-store sales held at the expected 4.1%.It gains share when consumers trade down to lower prices.He sees the gas-price bear case as overblown.He views the drop as a rare chance to buy at a discount.How Walmart stock stacks up against the S&P 500As of late June, the S&P 500 was up about 7.5% for the year, while Walmart slid the other way.Walmart versus the broad market:Past five days: WMT down about 4.3%.Past six months: WMT down about 2.2%.Year to date: WMT is down 3.23% YTD against a single-digit gain of about 9% for the S&P 500.What Walmart investors should weigh before buying the dipA lower price tag doesn’t automatically make Walmart a bargain.Even after the drop, the stock trades near 39 times earnings and remains down for the year. That doesn’t leave much room for error if consumer spending slows or the next earnings report disappoints.Walmart’s dividend yield is under 1%, so investors aren’t getting paid much to sit and wait.What still needs to go rightfor Walmart stock:Oil and gas prices stay contained, easing consumer pressure.U.S. comparable sales hold near recent levels.Management lifts guidance at the next report, due Aug. 20.Cramer’s call is a reason for long-term holders to stay patient. However, it is not a guarantee of gains. A dip only rewards buyers when the business behind it keeps growing, and Walmart still has to prove that quarter by quarter.Related: Walmart adds service to rival DoorDash, UberEats

Micron Technology (MU) just issued a different kind of artificial intelligence caution to investors.The dismal earnings picture isn’t the problem. It is not because demand is collapsing. It does not even arise from an obvious shift in the memory-chip cycle.Instead, the warning comes from the stock.Micron’s stock has tanked since the company reported solid June profits and a bullish outlook. The move is somewhat surprising, given that the corporation remains one of the greatest beneficiaries of the AI infrastructure growth.The cloud companies continue to pour money into data centers. AI systems need a lot of memory to store and transport data. That demand has helped tighten supply and increase prices across the memory market.Market data show Micron still trading close to $1,000 with a market worth of $1.1 trillion. The stock also remains a standout this year, even with the latest decline.“When strong (momentum) stocks can’t rally any further on good news, then you must take notice if long these names since the price momentum factor has become a very crowded/consensus trade,” 22v Research strategist Jeff Jacobson wrote in a note cited by Yahoo Finance.Micron stock shows the risk in crowded AI winnersMicron has become one of the most critical players in the AI hardware supply chain.Nvidia (NVDA) dominates the AI accelerator conversation, but accelerators do not work alone. AI systems also need memory to move, store, and retrieve massive amounts of data.That development has changed the memory market.Micron said AI has driven industry data center DRAM and NAND bit shipments in calendar 2026 to more than double the amount from two years ago. The business also said it expects server units to expand at a high-teens percentage rate this year, higher than its earlier projection for low-double-digit growth.That demand has constrained supply and given the memory companies pricing power.Micron said DRAM pricing increased sequentially in the low-60% range in the fiscal third quarter, while NAND prices increased in the mid-80% range. Higher pricing helped boost Micron’s consolidated gross margin to a record 84.9%, up 10 percentage points from the previous quarter.Related: Nvidia stock catalyst the market is missingSuch quantities would have been practically inconceivable in prior memory cycles.Memory companies traditionally endured boom-and-bust cycles. In times of shortage, customers over-ordered, suppliers boosted capacity, and prices later plummeted as supply caught up.AI has reshaped the market, at least for the time being.Micron said DRAM and NAND supply-demand conditions should stay tight beyond calendar 2027. The company also said memory supply growth depends on large greenfield fabrication expansions, long construction timelines, skilled labor, permitting, and energy infrastructure.That makes Micron’s current cycle appear more robust than a usual memory upswing.But it also leaves the stock more exposed to disappointment.If investors price a cyclical firm as a structural AI winner, that company needs to keep generating great outcomes.

Micron’s AI boom just ran into a Wall Street problem.Alex Wong / Getty Images

Micron’s results show how big the AI memory boom has becomeThe fiscal third quarter gave Micron bulls plenty of evidence.Revenue from data centers was more than $25 billion for the quarter, putting the firm on an annualized run rate of over $100 billion, the company said. Data-center solid-state drive revenue was above $5 billion and more than doubled sequentially.Micron produced $33.7 billion in operating income, giving it an 81.2% operating margin. Non-GAAP diluted EPS sequentially increased 106% to $25.11. Operating cash flow was $25.4 billion, and free cash flow was a quarterly record $18.3 billion.The company’s balance sheet improved as well.Micron concluded the quarter with $30.2 billion of cash and investments, reduced debt by $4.4 billion, and ended the quarter with a net cash balance of $24.4 billion.This is important, since memory businesses generally need to invest heavily during strong cycles.Micron expects to spend around $27 billion in capital expenditures in fiscal 2026 and anticipates that quarterly capital expenditures in fiscal 2027 will be higher than in the fiscal fourth quarter as it expands capacity to meet long-term demand.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 betMicron also provided investors with a better picture of future demand.The company signed 16 strategic customer contracts. For agreements with specific pricing terms, remaining performance obligations were around $100 billion based on minimum committed volumes and minimum pricing, Micron said. The company also said it expected $22 billion in consumer deposits and related financial obligations, including around $18 billion in cash deposits.That detail is bullish, as it implies buyers want to lock in memory supply long in advance.It also illustrates why investors need to think about Micron differently than in earlier cycles.The corporation is no longer subject to the whims of short-term market demand. Memory is now a scarce strategic element with big customers signing longer-term contracts.Micron’s sell-off still raises a tougher stock questionThe market has taken notice of such data.Micron stock is still up more than 200% year to date, Barchart confirmed. And shares recently traded at about $1,015, CNBC Television highlighted, giving the business a market worth of about $1.16 trillion, according to current market data.And there lies the difficulty. A stock can have solid fundamentals and still underperform if investors are already expecting perfection.That is exactly what Jacobson warns against. When a momentum stock stops going up on excellent news, investors should ask themselves if the trade is too crowded.Related: Michael Burry doubles down on AI chip bubble with Micron shortThat worry has been fueled by recent headlines.Investors are wondering whether Meta Platforms (META) will scale up its data-center buildout beyond what’s already in the works, CNBC reported. Investors also are weighing news that Apple (AAPL) may be using cheaper Chinese memory chips to help offset rising prices, according to 24/7 Wall St.Those problems don’t kill the bull case for Micron.But they warn investors that the AI memory trade is built on a number of assumptions: Hyperscalers must maintain spending, memory supply must remain tight, buyers must accept higher pricing, and suppliers must not add excess capacity too soon.Micron and General Motors (GM) struck a multi-year supply agreement for memory and storage platforms used in vehicle manufacturing, Reuters reported. DRAM prices have climbed around 70 percent since December, S&P Global Mobility said, according to Reuters.That transaction illustrates how the memory shortage has begun to extend beyond AI data centers.Modern cars require more memory for their modern driver-assistance systems and their infotainment, Reuters also noted. The GM deal is one of 16 strategic customer agreements Micron has, the company said.That gives Micron another source of demand. But it also highlights how rising memory prices might put pressure on customers. If prices climb too fast, purchasers may delay purchases, redesign systems or seek cheaper alternatives.Micron investors should watch 3 data points nextMicron will next be tested by its execution and the larger AI spending cycle.The company said it expected to report record revenue of $50 billion, plus or minus $1 billion, in the fiscal fourth quarter. It also predicts a gross margin of roughly 86% and earnings per share of $31, plus or minus $1. Micron said its expectation for gross margins in the fourth quarter of its fiscal year incorporates a significant slowing of the rate of price increases.The last point is important, as investors need more than just more revenue. They want to know if Micron can continue to boost margins as price increases slow.Samsung’s outlook gives investors a little more color.Samsung Electronics anticipates that demand for AI will strain memory supply and push chip prices higher, while analysts predict the memory industry will remain undersupplied at least into next year. Average selling prices of DRAM and NAND jumped 44% and 53%, respectively, in the second quarter, Citi Research stated, as Reuters reported.That strengthens Micron’s bullish case, but analysts also told Reuters the biggest danger to the current memory boom could be future delays in AI infrastructure spending. JPMorgan said investors are asking whether cloud-service providers can sustain the fast-growing share of AI memory in their capital spending.Micron stock key takeawaysMicron reported fiscal third-quarter revenue of $41.5 billion, up 346% from a year earlier.DRAM revenue rose 343% to $31.3 billion, while NAND revenue increased 361% to $9.9 billion.The company’s consolidated gross margin reached a record 84.9%.Micron expects fiscal fourth-quarter revenue of about $50 billion and earnings per share of about $31.The company has signed 16 strategic customer agreements, with about $100 billion in remaining performance obligations tied to agreements with defined pricing terms.The stock’s pullback suggests investors now worry that the AI memory trade has become crowded.The next key data points are hyperscaler capex, DRAM pricing, and Micron’s ability to maintain margins as price increases moderate.So from here, Micron bulls will be looking at three things.They will check hyperscaler capex first. If Amazon (AMZN), Meta, Microsoft (MSFT), and Alphabet (GOOGL) continue to increase AI infrastructure spending, Micron can continue to claim demand will outpace supply.Second, they’ll watch memory prices. Micron’s results show that price hikes drive most of the profit leverage. If DRAM and NAND prices keep rising, the company can maintain strong margins.Third, they will keep an eye on consumer commitments. Strategic client agreements could give Micron more foresight than earlier memory cycles, but investors will want to see proof that such commitments turn into lasting revenue and cash flow.Micron’s AI story now faces a higher barMicron’s stock drop isn’t necessarily a sign the AI memory cycle is broken.It suggests something more subtle: Investors are already pricing in many of the simple upsides.Micron remains in a strong position. Data centers for AI need memory. Supply is still scarce. Customers are signing longer-term contracts. The corporation has translated pricing power into record revenue, record margins, and record free cash flow.That’s the bull case.The danger lies in expectations, however. Micron needs to do more than just post great numbers after a big rally. It must provide outcomes that beat a much higher bar every quarter.That’s why the latest stock slide is essential. It indicates investors may buy into Micron’s long-term AI advantage and still dispute the near-term arrangement.For now, Micron’s fundamentals remain favorable to the AI memory thesis. But the stock’s reaction is telling. In a crowded trade like AI, favorable news may not be good enough.Related: Market rebukes Mag7 stocks, hyperscalers as Micron brags on margins

Southwest Airlines built its business on being an airline that allowed its employees, even encouraged them, to have personality.Before it dropped its in-flight magazine during the Covid pandemic, that publication had a section featuring stories about flight attendants, pilots, gate workers, and other personnel going above and beyond for passengers.You might get a pilot buying pizza for a plane full of passengers stuck due to weather or a flight attendant helping someone get to their destination after deboarding. They were inspiring tales that often brought you to tears.At the time, Southwest Airlines also had more playful flight announcements and the occasional singing flight attendant, making a broad attempt to be more than just another impersonal air carrier.In addition, the airline had traditionally responded to customers on X, the former Twitter, and other social media platforms in real time. That appears to have stopped, according to View From the Wing’s Gary Leff.Southwest Airlines makes a social media changeA few years ago, I flew Southwest multiple times a month commuting to my company’s office in Alexandria, Va. I had top-tier loyalty status and was annoyed on one flight when a traveling college volleyball team was given priority boarding.That pushed my guaranteed “A-List” boarding spot back to the middle of the pack, and I wasn’t thrilled, so I posted on what was then called Twitter and tagged the airline. More Travel:Hotel prices have actually fallen in these major citiesPopular cruise, tourist destination will triple entry taxDisney World just ended a trick that let visitors park freeI got an immediate response, apologizing and acknowledging that the airline might have made a mistake. It didn’t change anything, but I felt heard, and it was much better than me trying to get a response from a busy worker at the gate.Now, Leff reports that Southwest Airlines appears to no longer be responding on social media. “Delta Air Lines doesn’t provide much social media customer service. I haven’t seen a public reply to a tweet from them since mid-May. But American Airlines (especially) is very good with Twitter customer service, and so is United,” he wrote. “Until recently, Southwest Airlines was, too. Their reps even used to be quite funny and responsive with memes.”Leff, who has been monitoring the account, shared the changes he has noticed.”Southwest used to staff their social care team 24/7. With about 3,000 Twitter mentions per day, reps were answering scores of messages there and targeted a response time of 15 minutes. No longer. I haven’t seen a single Southwest Airlines reply on Twitter since June 18,” he added.

Southwest Airlines has dropped its open boarding policy.Shutterstock

Southwest Airlines has cut workersBefore its recent operating changes, Southwest Airlines had a policy of not laying workers off. “For more than five decades, Southwest staffers — who call themselves Cohearts — didn’t have to worry about losing their #jobs in tough times. The company touted its ability to avoid mass #layoffs during new-hire orientations. That practice changed in February, when the airline cut about 1,750 jobs, or 15% of its corporate workforce, to rein in fast-rising costs,” the Wall Street Journal reported.The change comes as the airline dropped its open seating policy and ended its “Transfarency” system of being transparent about all fees. It has generally adopted the operating model used by rivals, including American, Delta, and United, where customers pay for seat assignments, boarding position, and more.Josh Wilson, an airline industry analyst, sees the airline as having gone through a major cultural shift.”Now, on quarterly earnings calls, Bob Jordan discusses the layoffs in terms that employees and aviation observers have described as unexpectedly enthusiastic, framing headcount reduction as a driver of profitability and efficiency in language that contrasts sharply with the culture Southwest spent five decades building,” he posted on Facebook.Southwest Airlines is making moneySouthwest overhauled its long-term operating model in 2025, under pressure from activist investor Elliott Investment Management.Jordan, speaking during the airline’s first-quarter earnings call, made it clear that the changes have worked on a financial level.”First quarter 2026 represents an important milestone for Southwest as all our previously announced initiatives are now in place and contributing to our results, and what a difference a year makes. That broad set of commercial, operational, cost, and efficiency actions represents a fundamental transformation of our business model, and is translating into strong customer demand for our new product, strong financial results, and strong margin expansion,” he said.The company, he noted, has shifted from a loss to a profit.”First quarter EPS of $0.45 was in line with our guidance in January and represents a significant year-over-year improvement from a loss of $0.26 per share, or an adjusted loss per share of $0.13, and these results were delivered against the backdrop of significantly higher fuel costs,” he added.Leff has not been impressed. “The airline has been through multiple rounds of layoffs even while maintaining profitability. They’ve changed their entire ‘customer-friendly’ business model. So it’s not surprising that they no longer appear to be publicly engaging with customers. Responding to complaints increases the visibility of complaints! Better to bury their head in the sand, I guess, and save the staffing costs,” he added.Southwest Airlines did not respond to a request for comment on this story.Related: Southwest Airlines leaves rivals flat-footed as bankrupt carrier folds

AMD Ventures has taken a stake in Turing, a Japanese self-driving startup, and Turing has begun running part of its AI training on AMD chips instead of Nvidia’s.The deal itself is tiny. AMD hasn’t disclosed how much it invested, and Turing has never sold a car.Yet AMD shares jumped roughly 3% in premarket trading Monday the moment the news broke, according to TipRanks. That reaction says less about Turing than it does about how hungry the market is for any sign AMD can pull business away from Nvidia’s default position. The whole of Wall Street is watching closely.Why Turing decided to split its GPU spendingTuring built its AI systems entirely on Nvidia hardware for training and inference since it launched five years ago. Now about 10% of that training workload runs on AMD graphics processors, company executives told Bloomberg.AMD sits a short drive from Nvidia’s Santa Clara headquarters, and it offered a real chance to diversify supply and cut costs, the executives said.We’ve made notable progress with the technology.The company still plans to reach consumers and robotaxi fleets by 2028, according to Bloomberg, and it raised $79 million in an equity and debt extension last year that valued it near $600 million.Splitting GPU spending now gives Turing leverage in future price negotiations, a hedge that matters more as compute costs climb toward that launch date.Turing also partnered with auto supplier Denso last year to help it move toward commercial production, according to a Nikkei Asia report. That partnership gives Turing manufacturing credibility, but it remains a minor player next to Nvidia’s grip on autonomous driving compute.AMD’s stake doesn’t change that scale gap overnight, and investors should treat this as an early-stage bet rather than a settled customer win.

Turing Inc., a Japanese self-driving startup, has shifted about 10% of its AI training workload from Nvidia to AMD chips after AMD Ventures took a stake in the company.CAROLINE BREHMAN / Getty Images

Why a small robotaxi deal moved AMD stock before breakfastAMD’s jump didn’t last as an isolated event. Goldman Sachs raised its price target on AMD to $640 from $450 Monday, and Citi added the stock to its upside catalyst list, according to Investing.com. The stock found strong momentum during the session, surging from a low of $527.04 to hit $556.64. The rally was sparked by reports of delays to Nvidia’s Kyber rack system, a claim Nvidia has since pushed back against by stating its roadmap is intact.The Turing news arrived first and still moved the stock on its own. That timing matters for investors because AMD currently trades at a premium built on the idea that it is the industry’s guaranteed second source to Nvidia at scale.Every proof point outside AMD’s marquee hyperscaler deals, however small, reinforces that story, and the market priced this one in before the bigger analyst calls even landed.More AMD:Top Analyst strongly resets AMD stock price target5-star analyst resets AMD stock price target, but it’s not about GPUsAMD analyst sees something beyond Nvidia’s shadowAMD’s venture arm is buying access, not a chip orderAMD hasn’t issued its own statement confirming the Turing investment. Its newsroom’s most recent release, a June 16 deal with Rackspace Technology, predates the Turing report by three weeks, based on the company’s own site. That silence fits how AMD Ventures typically operates.AMD’s own investment pages describe its mission as backing companies aligned with pervasive AI and next-generation compute, with a portfolio that already includes Hugging Face and humanoid robotics startups.Related: AMD analyst sees something beyond Nvidia’s shadowAn equity stake buys AMD something a single GPU sale can’t: a seat at the table before Nvidia’s software ecosystem locks in as the default, and a chance to shape Turing’s roadmap directly.The AI proxy war beyond the data centerTuring is not alone in the race. Nissan and U.K. startup Wayve agreed to collaborate on a driver-assistance system aimed at mass-produced vehicles by fiscal 2027, according to Nikkei Asia, and that timeline is exactly why AMD wanted a foothold in Turing now rather than after it locks in a permanent chip supplier.Corporate venture capital has quietly become a proxy war between chipmakers fighting for design wins years before the hardware ships at volume.AMD’s Advancing AI event lands in three weeks, and investors will be watching whether it produces hyperscaler news as large as the Meta and OpenAI deals that built AMD’s current premium.Until then, the open question is whether Turing’s AMD allocation grows past 10% before 2028, or whether it stays a rounding error the moment a rival chip wins the next design cycle.Related: Top Analyst strongly resets AMD stock price target

After changing ownership in a multi-billion dollar deal, several locations of a health-conscious cafe chain quietly shut their doors across the U.S. Even so, those closures have done little to slow the company’s momentum. Instead, it is opening hundreds of restaurants, signing hundreds more development agreements, and investing heavily in technology, operations, and franchise growth.The contrast reflects a broader trend in the restaurant industry, where isolated store closures don’t always signal broader weakness. In many cases, they are part of normal franchise turnover as brands continue to expand into stronger markets.Restaurant closures follow major ownership transitionBlackstone (BX) acquired Tropical Smoothie Cafe in June 2024 from Levine Leichtman Capital Partners for about $2 billion, according to The Wall Street Journal. The acquisition was intended to accelerate the brand’s long-term growth through continued investment in menu innovation, operations, marketing, and development.At the time of the acquisition, Tropical Smoothie Cafe operated more than 1,400 locations in 44 states, according to the company’s announcement.After the deal was finalized, several franchise locations permanently closed.Crestview, Florida: Closed in September 2025, according to local reporting.Phoenix, Arizona: Franchisee JND Tropics LLC, which operated at least 10 locations, filed for Chapter 11 bankruptcy protection in June 2025, Franchise Times reported.Keller, Texas: Closed in December 2024, Community Impact reported.Tallahassee, Florida: Closed in August 2024, the Tallahassee Democrat reported.Baltimore, Maryland: Closed in June 2024, according to local reporting.While the closures drew local attention, they were limited to a small number of locations and largely reflected franchise- or market-specific circumstances, rather than a companywide reduction in restaurants.Tropical Smoothie Cafe accelerates expansion after closuresJust two years after the acquisition, Tropical Smoothie Cafe is approaching a major growth milestone.The company opened 165 restaurants in 2025 and plans to open another 175 locations in 2026, putting the brand on pace to reach approximately 1,800 cafes nationwide.Much of that growth has been supported by a flexible real estate strategy. Tropical Smoothie Cafe can operate in inline shopping centers, end-cap spaces, or freestanding restaurants with drive-thrus, giving franchisees more options when entering new markets.Like many rapidly expanding restaurant brands, Tropical Smoothie Cafe relies heavily on franchising to scale nationally. While the model enables companies to grow quickly with lower corporate operating costs, maintaining consistent performance across independently owned restaurants becomes increasingly important as franchise systems mature.Looking beyond 2026, the company has around 900 signed development agreements for future locations. Executives also say many existing franchisees are planning to expand their portfolios, while the brand continues to attract experienced multi-unit and multi-brand operators with the infrastructure to support new restaurant openings.

Tropical Smoothie Cafe accelerates expansion.Doug Engle / USA TODAY NETWORK

Tropical Smoothie Cafe is prioritizing quality over rapid expansionAlthough executives believe Tropical Smoothie Cafe could open more restaurants each year, they say expansion is being managed carefully to avoid oversaturating markets and creating underperforming locations.Instead, the company is focusing on increasing restaurant density in existing markets, a strategy intended to improve convenience, strengthen brand awareness, and support sales across nearby locations.”Development is fueled by franchisee economics,” Tropical Smoothie Cafe CEO Max Wetzel told Restaurant Dive. “We’re really focused on driving sales growth within each cafe and then equipping our franchisees with the data and the analytics that they need to make sure that they’re continuing to run a great business.”Streamlining operationsTropical Smoothie Cafe is also simplifying restaurant operations through its Smooth Operator initiative, which redesigns kitchen workflows at its smoothie, bowl, and food-preparation stations.While smoothie production was already efficient, food orders often slowed during busy periods. The initiative reorganizes equipment and kitchen layouts to improve speed, consistency, and order accuracy.The program has already been implemented in approximately 120 cafes and is expected to expand across the system throughout the year. Menu innovationMenu innovation remains another major growth priority.Rather than launching products for novelty’s sake, Tropical Smoothie Cafe says it focuses on menu items that combine health-conscious ingredients with broad consumer appeal.Here’s some of my previous coverage on menu innovation:McDonald’s unexpectedly adds 10 new chicken menu itemsTaco Bell brings back cult-favorite menu item after 13 yearsStarbucks, Dunkin’, and Luckin embrace non-coffee products”It shows you the flexibility within our menu to bring relevant innovation that is delivering against where consumers are going: global flavors, protein, snacking,” said Wetzel. “Those are the insights that drive some of the innovation we’ve already launched. We’ve got a lot more that we’ll be rolling out as we move through this year and next year.”Investing in digital marketing and loyaltyTropical Smoothie Cafe also continues investing in digital engagement.During the second half of 2025, the company rolled out a new marketing strategy designed to improve campaign efficiency and better personalize promotions for guests. Tropical Smoothie Cafe says the approach has helped create more targeted campaigns that better connect with customers. Its Tropic Rewards loyalty program has now grown to 12 million members, who account for roughly one-third of sales.Earlier in 2026, the company introduced Tropic Mode, a premium tier that offers additional benefits to its most loyal customers.Management expects the loyalty program to generate more than half of systemwide sales by 2027.Digital ordering has also become a larger part of the business. Approximately 40% of orders are placed through digital channels, while delivery accounts for about one in five orders. Another one in five orders is placed through the mobile app for in-store pickup.Later this year, Tropical Smoothie Cafe plans to launch an updated digital ordering experience with additional customization features.”It’s clear to me that the brands that are winning are the ones that are focused on convenience and focused on these emerging channels, which are no longer emerging, they’re core to the brand,” said Wetzel.The strategy is already producing resultsEarly results suggest Tropical Smoothie Cafe’s strategy is gaining traction.During the first quarter of fiscal 2026:Brand awareness increased 19% year over year.Systemwide sales grew 10%.Loyalty memberships climbed 25% to 12 million members.Although individual franchise locations have closed since Blackstone’s acquisition, the broader business tells a different story. With hundreds of planned openings, continued operational improvements, and rising customer engagement, Tropical Smoothie Cafe appears focused on strengthening long-term growth rather than slowing its expansion.Related: Iconic seafood chain files lawsuit after bankruptcy