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Michael Burry made his name betting against the housing market before the 2008 crash. Now, “The Big Short” investor is turning that same skepticism toward artificial intelligence, and Micron Technology just landed on his watchlist. On July 1, Burry disclosed he shorted Micron (MU) shares at $1,051.87, according to a Substack post. Valued at a market cap of $1.3 trillion, Micron stock has returned nearly 1,000% over the last three years. Moreover, it is up 260% in 2026, making it among the top-performing stocks globally. Burry says Micron’s rally has gone too farIn the Substack post, Burry noted, “Micron defines cyclical like no other,” pointing out the stock has suffered 34 drawdowns of more than 30% over the past 42 years. Burry stated: “Yesterday I shorted one stock even though it was down a good amount because I think I have a pretty good idea how this resolves.”He also said Micron shares are trading further above their 200-day moving average than at any point since 1984, a stretch that includes the dot-com bubble.He was even harsher on the company’s underlying profitability. Burry pegged Micron’s median return on invested capital at just 4% and median return on equity at 7%, calling both figures “frankly terrible.” Related: Michael Burry makes first-ever bet against longtime favorite stockBurry added that Micron destroys capital roughly one quarter out of every three, a pattern he tied to decades of inconsistent free cash flow.He framed the recent surge as driven by emotion rather than fundamentals, citing “fear of missing out, greater fool theory, public commitment bias” as the real forces behind the trade. The stock market expert also downplayed Micron’s high-bandwidth memory business, the AI-linked chips fueling much of the excitement, saying it is “just another in a very long series” of products rather than a permanent edge.According to an Invezz report, Burry now holds short positions in Nvidia (NVDA), Applied Materials (AMAT), and the iShares Semiconductor ETF (SOXX), and has said AI-related chip names could see a 30% correction.

Michael Burry warns that Micron is an extremely cyclical stockAstrid Stawiarz/Getty Images

What Micron’s own numbers showBurry’s history lesson checks out on the cyclical part. But Micron’s most recent quarterly results tell a very different story about where the company sits right now.For the quarter ending May 2026, Micron posted $41.5 billion in total revenue, up 345.7% year over year. Gross margin rose to 84.6%, compared with just 37.7% a year earlier. Operating margin jumped to 80.4% from 23.3%. Net income for the quarter came in at $28.2 billion, against $1.9 billion in the same period last year.Micron generated $25.4 billion in cash from operating activities and $17.6 billion in free cash flow for the quarter, a sharp turnaround from the $4.6 billion and $1.7 billion posted a year earlier. The balance sheet also strengthened, with cash and equivalents rising to $26 billion and long-term debt falling to $5.1 billion from $15 billion.None of this disproves Burry’s broader thesis about historical volatility. Micron has truly been an inconsistent earner over four decades, and the memory business is famous for boom-and-bust cycles. More Manager Buy/Sells:Nancy Pelosi places big bets on two surging tech stocksMichael Burry pulls back on massive Palantir short betWarren Buffett’s Berkshire triples stake in newspaper giantBut the current quarter is not showing the “capital destroyer” pattern Burry described. It is showing record profitability, driven largely by AI demand for high-bandwidth memory chips and new long-term supply contracts with major customers.On Micron’s fiscal third quarter earnings call on June 24, Chief Business Officer Sumit Sadana said customer demand for memory chips remains “well above our ability to supply,” across nearly every product category through 2028. CFO Mark Murphy added that free cash flow has grown to levels not seen in most of the company’s history.The bet comes down to timing, not fundamentalsBurry is arguing that the stock price has run too far, too fast, and that history suggests a pullback is coming. Given Micron’s track record of sharp reversals, that is not an unreasonable position.But the financial data from Micron’s latest quarter shows a company currently generating unprecedented cash flow and margins, not one showing early cracks. Whether Burry’s timing proves right will likely depend on how long the current memory shortage and the AI spending will last.Related: Micron just dethroned Nvidia in one key way

On July 2, Trump sat down with CNBC for an interview in the Oval Office. He talked about tariffs, the Federal Reserve, and his business dealings. Then he was asked about Elon Musk. His answer says more about the current state of their relationship than almost anything that has come out of Washington recently.Trump told CNBC he expects Musk to donate SpaceX stock to Trump Accounts, the federal savings program for American children that officially launched on July 4. Musk has not publicly confirmed or commented on the claim. But the government had already been in talks with SpaceX about the idea before Trump said a word about it publicly.What Trump said about Musk in the CNBC interviewWhen asked whether Musk might donate SpaceX shares to the program, Trump replied in the original interview: “Well, I think that he will do that.” He was careful with that phrasing. He thinks. He did not announce a deal or confirm a commitment.Trump also told the interviewer he had not spoken with Musk directly since SpaceX completed its IPO last month. “I wrote him a note,” Trump said. “I said, ‘Congratulations, very good.’ I have a very good relationship with Elon.” A note, not a call. Good, not great. The language was measured.More Elon Musk:Elon Musk has a radical fix for an AI-dominated economyElon Musk reveals his grand ambitions for SpaceX ahead of IPOElon Musk sets SpaceX IPO price in blunt message to Wall StreetSpaceX’s IPO was the largest in history at approximately $86 billion, briefly making Musk the world’s first trillionaire before share prices pulled back.Separately, Semafor reported on June 29, before Trump’s interview, that the administration had actually spoken directly with SpaceX about donating stock to Trump Accounts. Whether Musk has agreed, or how a contribution might be structured, remains unresolved.Why the Trump-Musk relationship makes this complicatedMusk spent roughly $300 million to help elect Trump in 2024 and then served as a special government employee running DOGE, the administration’s aggressive government-cutting effort, CNBC reported. Their public falling out came over Trump’s sweeping tax-and-spending legislation last year. Musk called the bill “utterly insane” in a post on X. Trump responded publicly that Musk had “just went CRAZY.” The dispute was loud and fast.The reconciliation followed a similar trajectory. By the fall, they were seen shaking hands at a public event. By November, Musk was attending a White House dinner. Trump has repeatedly described their relationship as intact. On July 2, he cited other executives who had contributed to Trump Accounts as he discussed Musk’s potential involvement.”Micron, which is a great company, just did it. Michael Dell is a fantastic guy,” Trump said, referencing other donors to the program.On Dell’s contribution specifically, Trump made clear he understood the scale.”That’s a tremendous amount, I don’t care how rich you are,” Trump said, referring to Dell’s $6.25 billion pledge to seed 25 million accounts.

A SpaceX stock donation would generate significant attention for the programHarnik/Getty Images

What Trump Accounts are and why SpaceX stock would be differentTrump Accounts were created under last year’s Republican tax-and-spending law. The federal government seeds each account with $1,000 for eligible children born in the U.S. between January 1, 2025 and December 31, 2028. The money goes into low-fee U.S. equity index funds and converts to a retirement-style account when the child turns 18. Treasury partnered with Bank of New York Mellon and Robinhood to run the program’s infrastructure, NBC News reported.Goldman Sachs, Morgan Stanley, BlackRock, Intel, JPMorgan Chase, Uber, Comcast, and Wells Fargo are among the companies that have committed to matching or contributing for employees’ children. Michael Dell pledged $6.25 billion. Micron committed contributions in several states. All of those are cash contributions or stock from publicly traded companies with established markets.SpaceX stock is different. The company’s IPO was completed last month, but shares remain volatile and access is still far more limited than conventional large-cap equities. Any formal donation of SpaceX stock to Trump Accounts would require clarity on valuation, lock-up periods, and how shares get distributed across millions of potential beneficiaries. None of that structure currently exists.How much traction Trump Accounts have actually gotten so farAdoption has been gradual. More than 6 million accounts had been opened ahead of the program’s launch, but only 1.4 million of those are eligible for the $1,000 government seed, out of roughly 75 million children under 18 in the United States, NBC News reported. The administration has been relying on high-profile commitments to maintain momentum.A SpaceX stock donation would generate significant attention for the program, regardless of what it means practically for most families. SpaceX is one of the most closely watched companies in the world, and Musk remains one of the most recognizable figures in American business. Trump’s statement puts Musk in a position where silence starts to carry its own meaning.Whether Musk follows through, and in what form, is the question Trump’s July 2 comment left open. The administration has spoken with SpaceX. Trump expects a donation. Musk has said nothing. That is where things stood heading into the program’s launch.Related: Elon Musk, Tim Cook share warning on new crisis in America

Monster Beverage (MNST) shares have spent the summer moving toward record highs, and Morgan Stanley just gave investors a fresh reason to keep watching.The bank reiterated its Overweight rating and $103 price target on the energy drink maker this week. Morgan Stanley is standing by a call it has now made twice in the past two months.What is new is the evidence behind it. Morgan Stanley pointed to a wave of new products, from limited-time flavors to entirely new brands. These products have gone from generating zero sales last September to nearly 15% of Monster’s total US sales today.That kind of increase rarely happens by accident, and it is reshaping how Wall Street thinks about Monster’s next few years.Morgan Stanley says the brand’s new Ultra Red, White, and Blue Razz flavor has “earned its stripes” this summer.Why Morgan Stanley is banking on Monster Beverage’s new productsMorgan Stanley’s July 2 note described Monster’s 2026 lineup as the strongest in its more than two decades covering the stock. More than 20new items have already launched, with more planned later this year.The rollout spans four categories that are new or unusual for Monster: limited-time offers, shot-enhanced drinks, brand relaunches like Storm, and flavors transferred over from Europe.Those launches now make up close to 15% of Monster’s US retail sales in the latest four weeks, Investing.com noted. That’s up from about 3.5% at the end of 2025 and zero in September. That kind of climb signals staying power rather than a short-lived spike.

Monster Beverage’s new flavors and limited-time releases are driving its strongest US sales momentum in years.NurPhoto / Getty Images

Monster’s first-quarter surge shows why Wall Street is paying attentionThe enthusiasm traces back to Monster’s first quarter of 2026. Net sales jumped 26.9% to $2.35 billion, the company’s largest first-quarter total on record, Monster reported.International sales did much of the work, climbing 44.9% to reach about 45% of total revenue, a company record. Related: Target adds celebrity exclusive Coca-Cola and Pepsi soda rivalMonster also authorized a new $500 million stock buyback, a signal of confidence in its own shares, according to its SEC filing.However, gross margin slipped to 55% from 56.5% a year earlier, Investing.com reported. This fall mostly reflects faster growth overseas, where margins run thinner, rather than any weakening in the core business.First-quarter 2026 snapshot:Net sales: $2.35 billion, up 26.9% year over yearInternational sales: up 44.9%, about 45% of total revenueEarnings per share: $0.58, beating the $0.53 consensus estimateNew buyback authorization: $500 millionWhy Red Bull’s price hike could set up more gains for MonsterMorgan Stanley also highlighted a Red Bull price increase set for August 1, calling it a positive signal for the category, Insider Monkey reported. If Red Bull moves first, Monster can follow suit without losing shelf space.More Beverages:Coca-Cola launches exclusive soda flavor at fast-food giant Discontinued Pepsi soda brand quietly returns to storesPepsi creates a new beverage platformThe stakes are high. The US energy drink market was worth about $25 billion in 2024 and is projected to keep growing near 7% a year, according to Grand View Research.Competition remains real, though. Celsius Holdings has grown into a serious rival since teaming up with PepsiCo for distribution. Meanwhile, Monster’s US market share losses are easing but haven’t fully reversed.What could slow Monster Beverage’s momentumNot everyone is convinced the Monster rally has more room to run. Bernstein initiated coverage in June with a more cautious Market Perform rating and a $95 price target, according to Investing.com.  He argued that the stock’s climb already reflects much of the good news.Monster also still expects its margins to dip further in 2026beforerecovering in 2027. Its shares now trade near 38 times next year’s expected earnings. That’s a close valuation to the stock’s 52-week high.Risks worth watching:A weaker economy could soften demand for premium energy drinksSmaller rivals gaining shelf space could pressure Monster’s US market share furtherGross margins could land lower than expected if input costs climbInternational margins could weaken if overseas growth keeps outpacing domestic salesWhat comes next for Monster Beverage investorsMorgan Stanley’s $103 target assumes Monster will trade at about 38 times its projected 2027 earnings. However, the bigger prize to the bank is that profit margins should start recovering in 2027 as this year’s heavy spending on new products and shifting sales eases.From here, investors watching Monster have three things to track: How the Red Bull price increase plays out in AugustWhether the current wave of new products keeps its momentum into the fallMonster’s next earnings report.For long-term holders, the underlying story has not changed much. Monster still controls two of the strongest energy drink brands and has a global distribution partner in Coca-Cola. Additionally, they possess an innovation engine that is clearly working for the first time in years.Related: Amazon’s SodaStream deal is a savvy investment for sparkling water and soda lovers for $82

Cathie Wood, chief of Ark Investment Management, is known for buying “disruptive” tech stocks during market pullbacks.That’s what she just did, adding one of her highest-conviction investments, Tesla, as the stock fell more than 7% in a day.In 2025, the flagship Ark Innovation ETF gained 35.49%, far outpacing the S&P 500’s return of 17.88% in the same period. So far this year, Wood’s flagship Ark Innovation ETF (ARKK) is up 4.34% year to date, while the S&P 500 surged 9.32% as of July 2, Yahoo Finance data shows.Wood gained a reputation after the Ark Innovation ETF delivered a 153% return in 2020. But her style also brings painful losses in bearish markets, as seen in 2022, when the Ark Innovation ETF tumbled more than 60%.Those swings have weighed on Wood’s long-term gains. As of July 2, her Ark Innovation ETF has delivered a five-year annualized return of -8.56%, while the S&P 500 has an annualized return of 11.45% over the same period, according to data from Morningstar.Cathie Wood flags “the deflationary impact” of tech innovationWood focuses on high-tech companies across artificial intelligence, blockchain, biomedical technology, and robotics. She thinks these businesses have strong growth potential, though their volatility often causes fluctuations in the Ark’s funds.According to Morningstar analyst Bella Albrecht, two of Wood’s Ark funds were among the worst-performing ETFs in the first quarter of 2026. The Ark Next Generation Internet ETF (ARKW) ranked second on the list, while the ARK Innovation ETF placed fifth.From 2014 to 2024, the Ark Innovation ETF wiped out $7 billion in investor wealth, according to a March 2025 analysis by Morningstar’s analyst Amy Arnott. That made it the third-biggest wealth destroyer among mutual funds and ETFs in Arnott’s ranking. The analyst hasn’t updated her ranking.Wood believes investors have been focusing on the wrong signals as they assess the outlook for inflation, interest rates, and stocks.In a June 5 post on X, Wood said the bond market is increasingly reflecting the deflationary impact of technological innovation, particularly artificial intelligence, rather than the inflation risks many investors still fear.Wood pointed to the continued flattening of the Treasury yield curve despite a sharp rise in oil prices over the past year. In previous cycles, she noted, an energy shock of that magnitude would have pushed long-term yields higher. Wood believes the bond market is “discounting something much more powerful: the deflationary impact of technological innovation, particularly artificial intelligence, which is beginning to increase productivity across broad swaths of the economy.
”She also said easing tensions with Iran and a decline in oil prices could push inflation even lower.”The next phase of this cycle could be characterized by accelerating growth, declining inflation, falling interest rates, and a strengthening U.S. dollar,” Wood said. “That combination would create a remarkably supportive backdrop for innovation-led equities and the technologies driving the next productivity boom.”Not all investors agree with Wood’s optimism. Over the past 12 months through July 2, the Ark Innovation ETF saw roughly $1.3 billion in net outflows, according to data from ETF research firm VettaFi. 

Over the past 12 months through July 2, the Ark Innovation ETF saw roughly $1.3 billion in net outflows.Getty Images

Cathie Wood buys $38.1 million of Tesla stockOn July 2, Wood’s Ark funds bought 96,935 shares of Tesla Inc. (TSLA), according to Ark’s daily trade information. These shares are valued at approximately $38.1 million based on July 2’s closing price of $393.45. Tesla shares sank 7.49% on that day of purchase, even after the electric vehicle maker posted a strong Q2 delivery report that reversed its consecutive annual sales declines.Tesla delivered 480,126 vehicles in Q2, up from about 384,000 a year earlier and 358,023 in the first quarter of 2026. Analysts had expected about 406,600 deliveries in Q2, according to CNBC.Related: Cathie Wood buys $11.5 million of battered tech stockJuly 2’s drop was Tesla stock’s worst day in almost a year, extending a streak of declines following each of the past three quarterly delivery reports. The company is still working to recover from consecutive annual sales declines, which have been partly attributed to backlash against CEO Elon Musk’s political activities and the loss of a U.S. federal EV tax credit.In April, Tesla reported mixed first-quarter results. Adjusted earnings came in at 41 cents per share, ahead of Wall Street expectations of 37 cents. But its revenue of $22.39 billion missed analysts’ estimates of $22.64 billion. The company is set to report its Q2 earnings on July 22.Tesla has been one of the weakest performers among the Magnificent Seven this year, with its shares down 12.51% year to date. Only Microsoft stock performed worse, falling 19.26% over the same period.But Wood has long been bullish on Tesla stock, and her recent buy is probably just another attempt to buy the dip. Wood predicted last year that Tesla’s stock would reach $2,600 by 2030, which would value the company at over $9 trillion. This forecast is largely based on her assumption that Tesla’s robotaxi fleet will account for 90% of its total value.“90% of that valuation comes not from the electric vehicle, but from this robotaxi platform,” Wood said in an interview with Steven Bartlett on his podcast “The Diary Of A CEO.”Wood said in a June 8 X post that she tried Tesla’s robotaxi fleet in Austin. “Smooth ride, no driver. It’s remarkable to see 10+ years of real-world AI training manifesting in a fully autonomous service,” Wood wrote.Tesla is the No.1 holding in the Ark Innovation ETF.Top 10 holdings of the Ark Innovation ETF as of July 2, 2026:Tesla Inc. (TSLA) – 10.18%Tempus AI Inc. (TEM) – 5.86%CRISPR Therapeutics AG (CRSP) – 4.90%Robinhood Markets Inc. (HOOD) – 4.84%Advanced Micro Devices Inc. (AMD) – 4.58%Shopify Inc. (SHOP) – 4.40%Space Exploration Technologies Corp. (SPCX) – 4.08%Coinbase Global Inc. (COIN) – 3.83%Twist Bioscience Corp. (TWST) – 3.71%Roblox Corp. (RBLX) – 3.47%Other than buying Tesla shares, Wood’s latest trades included adding shares of Bullish (BLSH), SoFi Technologies (SOFI), X-Energy (XE), Recursion Pharmaceuticals (RXRX), Generate Biomedicines (GENB), and Alamar Biosciences (ALMR).She also trimmed holdings in Alibaba (BABA), Roku (ROKU), Twist Bioscience (TWST), Illumina (ILMN), Absci (ABSI), and Strata Critical Medical (SRTA).Related: Goldman Sachs delivers honest verdict on gold’s selloff

Southwest Airlines has spent the past year and a half rebuilding its business from the ground up. Now that work is colliding with a once-in-a-generation opening: the collapse of Spirit Airlines. And based on new research from Morgan Stanley, Southwest Airlines (LUV) planned for this moment long before its rivals even saw it coming.Morgan Stanley analysts led by Ravi Shanker met with Southwest CFO Tom Doxey and Managing Director of Investor Relations Danielle Collins at the company’s Dallas headquarters. Their takeaway was blunt. Management believes it has “their mojo back,” and Morgan Stanley now rates the stock “overweight” with a $60 price target, according to the firm’s June 30 note.Spirit Airlines’ exit created rare openingSpirit Airlines shut down for good on May 2, 2026, ending a 34-year run as the pioneer of the ultra-low-cost carrier model in the United States.Spirit first filed for bankruptcy protection in November 2024, NPR noted, then filed again in August 2025 after its first restructuring failed to address deeper problems such as rising labor costs and a costly engine recall.The final blow came from outside the industry entirely, CNBC indicated. A spike in jet fuel prices tied to the conflict in Iran shattered Spirit’s late-stage restructuring models.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 moneyEmergency talks with the federal government over a loan or bailout fell apart, and Spirit entered liquidation.That left a sudden gap in aircraft, gates, and landing slots across the country, and airlines are now racing to pick up the pieces.Southwest Airlines saw it coming and planned for itWhile most airlines were still sorting through what Spirit’s exit means for them, Southwest made its move.Historically, the company shared about 30% of its routes with Spirit. By the time Spirit shut down, Southwest had trimmed that overlap down to 15%, according to Morgan Stanley’s note. The reduction shielded Southwest from the worst of the fare wars that typically follow a competitor’s collapse, while still positioning the airline to absorb the leisure demand Spirit leaves behind.Southwest has also pulled back at hubs like Chicago O’Hare and Washington Reagan National, where it already has a strong presence through secondary airports such as Chicago Midway. That freed up capacity to double down on high-growth leisure markets, including Orlando, Las Vegas, San Diego, and Austin.CEO Bob Jordan described the network as something that has to keep moving. Speaking at Bernstein’s Strategic Decisions Conference on May 28, Jordan said Southwest pulled capacity from Dulles and O’Hare simply because those routes weren’t generating the returns the company wanted, and that capacity is now going toward markets with stronger demand. “Obviously, you hate to see somebody go out of business, but with Spirit out of business, I think that helps that environment,” Jordan explained. “So I do think the backdrop is constructive when fuel drops to retain the revenue and yield increases that we’ve seen. “Southwest management is keeping overall capacity increases in the low single digits for now, even as fuel costs ease from their peak earlier this year.Southwest’s new revenue playbook is paying offNotably, Southwest moved to assigned seating and added extra legroom options in January, a major break from decades of open seating. According to Morgan Stanley, the share of Southwest passengers paying extra for these add-ons has jumped from under 20% in the past to 60% today, with no sign of a ceiling.Related: Southwest Airlines’ CEO makes startling admissionJordan told the Bernstein audience that business travel revenue was up 25% year over year in March, and that momentum carried into April and May. Rapid Rewards loyalty enrollments climbed 37% in the first quarter, and satisfaction scores among top-tier customers topped 90%.Southwest is also weighing bigger bets, including airport lounges, a true first-class cabin, and eventually, long-haul international routes. A high-speed WiFi rollout with Starlink is already underway, with roughly 300 aircraft expected to be converted by year’s end.

Southwest Airlines is revamping its business model.Kevin Carter/Getty Images

What it means for LUV stock investorsMorgan Stanley’s view is that the market has not fully priced in the durability of these changes. The firm sees Southwest potentially joining Delta Air Lines and United Airlines as part of an elite “Quality 3” among U.S. airlines, a rerating case that could push shares above $75.Morgan Stanley also flags a weaker macro backdrop, competitive fare pressure, and the chance of another operational disruption as the main threats to that outlook. Fuel prices, still elevated after this year’s spike, remain the biggest wild card for how much of these gains Southwest can sustain.For now, Southwest is the airline that planned ahead. Its rivals are still catching up.Related: IATA issues stark message on fuel costs and airline profits

As America celebrates its 250th birthday this July 4 weekend, Jim Cramer took a moment on the “Mad Money” Lightning Round Tuesday, June 30, to flag a space company he believes could make investors real money over the next two years.The stock is AST SpaceMobile (ASTS). The call was brief, as lightning rounds always are, but the conviction was clear.I think it is a great speculative stock… I think you can make money in two years. I would go for it.ASTS closed July 2 at $85.13, down slightly on the session but up 17.21% year to date and 86.24% over the past year, according to Yahoo Finance. The three-year return of 1,711% tells the longer story of what this company has done for early believers.I want to unpack why Cramer made this call, what the company actually does, and what you (if walking into this stock) need to understand about the risk profile.Also Read: AST SpaceMobile Inc. Latest News and StoriesWhat AST SpaceMobile actually does and why it is differentMost satellite communication companies require specialized hardware. A dedicated device. A proprietary terminal. Something the average person does not own and has to purchase separately.The nine-year-old AST SpaceMobile is building something different. The company’s technology functions as a “cell tower in space” — connecting standard, unmodified smartphones directly to its satellite network. No hardware changes. No special device. And just like that, the phone in your pocket today would be able to access broadband coverage anywhere on Earth if the AST constellation scales as planned.More AST SpaceMobile (ASTS):ASTS adds $10B in market cap on bold industry developmentsJeff Bezos’ Blue Origin rocket explodes as space tech stocks tankAST SpaceMobile just proved biggest skeptics wrong, for nowThe commercial strategy is equally distinctive. Rather than competing with telecom carriers, AST partners with them. The company has signed agreements with nearly 60 mobile network operators globally, reaching over 3 billion potential subscribers, according to AST Space Mobile.AT&T, Verizon, and Vodafone are among the partner names, according to company disclosures. A partnership with Rakuten in Japan recently received approximately $923 million in government subsidies to accelerate the deployment of direct-to-mobile satellite services, according to BigGo Finance.The addressable market that the thesis opens up, which is the universal broadband coverage through existing handsets, for every carrier customer globally, is what keeps the speculative bull case alive, even as near-term financials remain deeply negative.AST SpaceMobile Q1 2026 results are the financials investors need to see clearlyCramer’s “speculative” qualifier matters here, and the Q1 2026 numbers explain exactly why he used it. AST SpaceMobile reported revenue of $14.7 million for Q1 2026, according to the company’s May 11 earnings release.The company reported a net loss of $191 million, which widened from $133.3 million in Q1 2025, primarily due to a satellite launch issue and increased infrastructure buildout costs. EPS came in at -$0.66 compared to a consensus estimate of -$0.23, according to Zacks. Related: Jim Cramer turns bullish on health care stock after years of doubtZacks data also shows that over the last four quarters, the company has not been able to surpass consensus EPS estimates.The company holds $3.5 billion in cash and equivalents, providing a substantial runway to execute on the constellation buildout, according to company disclosures. Full-year 2026 revenue guidance was reaffirmed at $150 million to $200 million, primarily driven by mobile network partners and the U.S. government, according to AST Space Mobile.Also Read: Jim Cramer’s net worth: How much does ‘Mad Money’s’ stock-picking superhost make?My read of those numbers is that this is genuinely a story where the near-term financials are almost irrelevant to the investment thesis. What matters is whether 45 BlueBird satellites get into orbit by the end of 2026 as targeted, whether the carrier partnerships convert to revenue at scale, and whether the technology performs commercially across diverse geographies. If those milestones are hit, the $150 million to $200 million guidance for 2026 becomes the floor for a much larger trajectory heading into 2027.

AST SpaceMobile full-year 2026 revenue guidance was reaffirmed at $150 million to $200 million, driven primarily by mobile network partners and the U.S. government.Paul Hennesy/Anadolu via Getty Images

The risks Cramer’s “speculative” label is pointing atThe SpaceMob retail following is real. Message volume on Stocktwits reportedly surged 669% around recent ASTS news. Heavy short interest combined with dedicated retail enthusiasm has historically produced sharp squeeze-driven moves when operational milestones land. That dynamic cuts both ways. It amplifies upside when things go right, and downside when they do not.Related: Jim Cramer delivers unmistakable verdict on SpaceX price actionThe Q1 satellite launch issue that widened losses, according to AST SpaceMobile’s Q1 2026 earnings transcript, is a reminder that space infrastructure is genuinely difficult. Deployment delays, technical failures, and regulatory hurdles are real variables that cannot be modeled away by the revenue targets, however compelling they may seem.Defense and government contract opportunities are another winDefense and government contract opportunities add a strategic dimension beyond the consumer thesis. The technology has been proposed as a potential GPS alternative and has drawn interest for military and emergency response applications, according to company disclosures. Some of AST SpaceMobile’s latest contracts include:$30 million prime contract by the U.S. Space Development Agency for the HALO Europa Program, according to BusinessWirePrime contract position on the U.S. Missile Defense Agency SHIELD Program, BusinessWire confirmedSingapore’s Defence Science and Technology Agency (DSTA) contracted to trial a space-based cellular broadband network, according to Space & DefenseThose contracts represent revenue diversification that reduces dependence on the consumer carrier ramp timeline.Cramer’s two-year frame is the right way to think about this. ASTS at $85 is not a stock you buy for next quarter’s earnings. Think of it this way: It is a bet that the satellite constellation scales, the carrier agreements convert, and the direct-to-device technology finds the commercial traction the partnerships suggest it should. If it does, the two-year thesis he outlined looks exactly right. If the constellation encounters further deployment issues, the $3.5 billion cash runway buys time, but the stock will reflect the uncertainty.Related: Jim Cramer sends a stern message to SpaceX buyers

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 dealThinking about taking a big vacation over summer break? Whether you’re headed for the beach, flying overseas, or settling in for a quiet camping trip beside your favorite lake somewhere, you just want to be sure to remember to pack everything you’ll need. Spring and summer are great opportunities to get away from our screens, give the eyes some rest, and commune with nature, whether that involves the ocean, the sun, the river, or lying silently on your back beneath a canvas of stars.So while you’re getting ready for the warmer weather, be sure to check retailers like Walmart for any great deals that might interest you — on sleeping bags, coolers, hiking boots, swim trunks and bikinis, snacks, Bluetooth speakers, and so on. You can save yourself a ton of money by shopping around, comparing prices, and doing a bit of due diligence to get something really worthwhile at a competitive price.Right now, for instance, you can score a pair of Walmart’s bestselling Athletic Works Tunnel-Slide Sandals for only $10. A comparable pair of Adidas slides might well cost you twice or even four times that much. You can look and feel just as good without a logo, knowing you didn’t overspend, especially if you’re living on a student’s budget at the moment.Athletic Works Tunnel-Slide Sandals, $10 at Walmart

Why do shoppers love it?These open-toed slip-on sandals from Athletic Works are made with a 100% ethylene-vinyl acetate (EVA) upper, a 100% EVA outsole, and a 100% EVA insole, offering laid-back comfort and waterproofing for any occasion the day’s adventures might call for. You can slide right in and out of them in an instant, and they fit true to size (U.S. men’s standard), so you can safely order your normal shoe size online and know what you’re getting ahead of time. They have a nice textured footbed, as well, so they won’t come off unless you want them to.They’re lightweight, they won’t mark up your flooring, and they’re easy to wipe clean if you end up getting them a little dirty. They come in U.S. men’s sizes ranging from 7 to 11.5 as well as colors like black, blue, and green. Pricing is pretty consistent from one option to the next, but some options are low stock. Considering the popularity, we suggest adding a pair to your cart sooner rather than later. Related: Travel-ready sandals for summer vacationDetails to knowSizes available: 7 to 11.5 (men’s U.S. standard sizing).Color options: Black, blue, and green.Materials: 100% ethylene-vinyl acetate (EVA).Shoppers love the value proposition and sturdiness of these off-brand sandals, saying they hold up well and stay on properly even in extreme heat. “I’ve been wearing these for years,” said one reviewer. “They’re very comfortable, cushier than even much more expensive slides, and I wear them pretty much continuously around the house and outside on the patio. I also like that they’re made in the U.S. with 75% domestic materials. They aren’t the fanciest, but they do the job.”Shop more deals Hobibear Flip-Flops, $21 (was $34) at WalmartVonmay Slip-Ons, $15 (was $17) at WalmartNeed a new pair of flip-flops for your next big adventure? Score a pair of Athletic Works Tunnel-Slide Sandals at Walmart for $10 — just in time for summer.

Meta Platforms (META) has spent much of the artificial intelligence boom asking investors to trust the bill.But now Wall Street might finally be getting a clearer answer on how Mark Zuckerberg plans to turn that spending into revenue.Meta is establishing a cloud business to sell spare AI computing capacity, Reuters reported. The business might offer developers access to Meta’s AI models or let clients purchase raw computing power, bringing Meta closer to the AI infrastructure market currently controlled by cloud giants and newer compute providers.That’s a big change for a corporation that still derives the bulk of its profit from digital ads.Meta reported first-quarter revenue of $56.31 billion, $55.02 billion of which was from advertising. Its operating margin was 41%, a level few large technology companies can match.So investors liked the cloud idea, but they may not be able to overlook the cost.A cloud business might help Meta monetize its enormous AI and data-center buildout. But it also risks pulling the business into the lower-margin infrastructure market, where the economics are fundamentally different from Facebook and Instagram marketing.Meta shares were recently trading at $582.90, giving the Facebook and Instagram parent a market capitalization of nearly $1.49 trillion.Meta stock gets a new AI revenue storyThe timing is important.Meta has been spending big on AI infrastructure, processors and data centers, but investors want to know when that will translate into revenue.The company stated capital expenditures, including principal payments on finance leases, were $19.84 billion for the first quarter. Meta also revised its 2026 capital expenditure outlook to between $125 billion and $145 billion, pointing to greater component prices and more data-center expenditures linked to future capacity.Investors are more comfortable with that type of spending when there’s a clear revenue stream tied to it.A cloud business could provide one.If Meta has more AI computing capacity than it needs for its models, ad tools, and consumer apps, selling that capacity to outside developers could make the buildout appear less like an unchecked cost and more like a platform business.The idea also answers a broader strategic question for Meta.Related: Meta just picked a fight with Amazon’s cash cowMost of the AI reward for Meta has so far been inside the advertising machine. AI helps enhance targeting, ad production and engagement across Facebook, Instagram and WhatsApp.That’s helpful, but it doesn’t fully address the investor issue that Meta is spending tens of billions of dollars on infrastructure without building a new separate business.Cloud computing could change that story.Meta’s cloud push could pressure marginsThe catch is that cloud revenue is not ad revenue.More Meta:Meta launches smart glasses cheaper than Ray-BanMark Zuckerberg admits mistakes in leaked memo after Meta layoffsMark Zuckerberg and Meta face first tough test after layoffsMeta’s advertising business is unusually successful as the firm already owns the platforms, the audience and the auction system that sells ad space.Cloud computing is another story because it takes massive infrastructure investments, enterprise clients, sales teams, service agreements, technical support, and ongoing investment in chips and data centers.Alphabet (GOOGL) shows the contrast.Google Services had $89.64 billion in sales and $40.59 billion of operating income in the first quarter. Google Cloud revenue was $20.03 billion, while operating income was $6.6 billion.Key takeaways from Meta’s cloud pushMeta is reportedly building a cloud business to sell excess AI computing capacity.The move could help Meta monetize its heavy AI and data-center spending.Meta raised its 2026 capital-expenditure forecast to $125 billion to $145 billion.Advertising still accounted for nearly all of Meta’s first-quarter revenue.Cloud computing could diversify revenue, but it may come with lower margins.Alphabet’s results show cloud can be profitable, but the economics differ from ads.The investor question is whether Meta is selling spare capacity or entering a lower-margin infrastructure fight.Google Cloud is a great business. It’s a fast-growing business that is profitable presently.But its profit profile is still distinct from the ad-heavy Google Services company. That’s the problem Meta investors may have to start pricing in if cloud is to become a big part of the company’s future.Meta isn’t concerned about whether cloud computing can make money.The worry is that such revenue may compromise the margin profile that made Meta one of the most lucrative firms in tech.Meta could put pressure on AI cloud stocksMeta is not going to be the next Amazon Web Services overnight.The more probable short-term course is more constricted: the sale of AI-specific processing capacity to developers and enterprises that need access to costly infrastructure.That places the company in closer proximity to the world of AI-centric cloud vendors like CoreWeave (CRWV) and Nebius Group (NBIS) and not a full-service cloud behemoth.The rumored Meta plan might put the company in competition with CoreWeave and Nebius, Reuters said.That is why the report is significant outside Meta.CoreWeave shares were last at $81.75, giving the business a market capitalization of around $43.1 billion. Nebius was currently trading at $215.62.Meta has one advantage those companies do not.Cloud does not have to be the whole story.The same infrastructure may be leveraged by the corporation for its own AI models, ad products, and recommendation systems, as well as Meta AI, Instagram, Facebook and WhatsApp. Meta can offload any spare capacity. And if internal demand increases, Meta can consume more of it.It’s that flexibility that makes the strategy particularly compelling.It also makes the margin question harder.

Zuckerberg’s AI spending may finally get a revenue answer.COM & O / Getty Images

Meta’s cloud push gives Wall Street what it wanted: a potential revenue stream directly tied to the company’s AI spending.But it also means investors have something fresh to worry about.Meta’s core ad business is asset-light relative to cloud infrastructure. Selling processing power would help justify the AI buildout, but it could also make Meta seem more like a capital-intensive infrastructure business on the fringes.This is the true trade-off.It could be a sensible approach to get more out of spending what it was already going to make if Meta can sell off idle AI capability without developing a large cloud operation.If the company dives deeper into enterprise cloud, investors may have to accept a business with more revenue diversification but lower margins.For now, Wall Street is a fan.The next test is whether Meta can demonstrate that cloud computing is not simply a smart answer to AI spending concerns but a business that can increase revenue without eroding the profit profile that made the stock so attractive in the first place.Related: Meta says it can read your thoughts without surgery

Billionaire Bill Ackman isn’t backing away from Big Tech at a point when Wall Street questions how much money the industry is pouring into AI.During a Forbes Iconoclast sit-down, Ackman discussed his IPO, Howard Hughes plan, and Big Tech-heavy portfolio.The surprising comments at a point when the AI trade enters a far more skeptical phase. Investors aren’t just rewarding scale; they are asking whether the tremendous spending behind the boom will translate into real returns, especially after a massive rally in mega-cap tech stocks.In doing so, Ackman put Alphabet (GOOG), Amazon (AMZN), and Meta Platforms (META) back in the spotlight. For context, Google-parent Alphabet has led the group with double-digit YTD gains, Amazon has advanced more modestly, while Meta remains down for the year. Hence, Wall Street is worried about the cost of the AI race, but Ackman appears more focused on what those investments could unlock next for investors.

Bill Ackman says Big Tech AI spending may still reward patient investorsBryan Bedder/Getty Images for The New York Times

Why Alphabet, Amazon, and Meta still anchor Ackman’s AI bet Ackman’s case for Alphabet, Amazon, and Meta is simply about a shift in price and perception. He said Pershing Square had admired the companies for years, but they were “never cheap enough”. However, that situation has changed as investors began punishing Big Tech for the huge AI spending cycle now running through the sector.The fear is obvious. Alphabet, Amazon, and Meta are committing enormous sums to data centers, chips, and AI infrastructure, and Wall Street is now firmly in ‘show-me’ mode. For some color, according to 13Finfo, Pershing Square’s latest released 13F for Q1 2026 shows only a small remaining Alphabet stake after Ackman sharply cut the position. Based on the filing’s $13.7 billion portfolio, Alphabet Class A and C together accounted for just 0.8%, while Amazon was at 17% and Meta at 11.1%, bringing the three holdings to near 29%.If we factor in Pershing’s new Microsoft stake, Big Tech accounts for somewhere between 40 and 45% of its disclosed U.S.-listed equity holdings. Interestingly, Reuters recently reported that Ackman’s firm no longer owned Alphabet in Q2. Additionally, Alphabet, Amazon, and Meta collectively committed $505 billionto $535 billion in 2026 capex, much of which was tied to the AI infrastructure race. Ackman doesn’t share that concern, though.In his view, valuations have taken a hit as growth rates are accelerating, creating the kind of mismatch Pershing Square looks for.Ackman’s playbook has never been classic “cheap stock” value investing. For him, it has always been about buying high-quality, dominant businesses when the market is temporarily worried about something that management can turn into long-term value. That aligns with what he shared in the Forbes interview.“So the core strategy of Pershing Square has always been buying minority stakes in pretty big companies and helping make them more successful.”Why Ackman says the AI winner may not matterAckman’s big point on AI investing was far from being an endorsement of a specific chatbot. In fact, he essentially warned against framing that trade too narrowly.“It’s not clear which frontier model is going to be the winner and whether there will be a winner,” he said, noting that OpenAI once looked ahead, Google followed, and now “Anthropic seems to be the kind of lead horse.” However, Ackman’s conclusion moved quickly beyond Anthropic itself.For investors, his argument is that the model race may keep shifting, while the need for infrastructure is more durable. Every serious AI contender needs enormous processing power, which makes the demand for cloud services harder to dismiss.“One thing’s clear: all of these companies require massive amounts of compute,” Ackman said. The cloud, in his view, is the “most scalable, safest place to get access to that kind of compute”.That is where things flip back in favor with Amazon and Alphabet, because their cloud platforms sit closer to the rails powering the AI buildout.Meta fits the basket differentlyIt isn’t the same cloud toll-road story, but it is still part of Ackman’s broader view that the market is focused on AI spending risk and not enough on what dominant platforms may earn from it over time.Interestingly, Bloomberg reported recently that Meta is building a company to sell excess AI computing capacity. Though that strategy is still in development and could change, the idea fits Ackman’s argument that investors might be underestimating returns from Big Tech’s AI buildout. What it means for Alphabet, Amazon, and Meta investorsFor investors, Ackman’s Big Tech bet is not one trade with three identical stories.According to Seeking Alpha, Alphabet trades at nearly 25 times forward non-GAAP earnings, positioning it as a premium AI and search compounder, but far from being extreme if cloud and Gemini-driven growth continues to improve. Moreover, Amazon is slightly richer on near-term earnings at about 28 times, yet its lower sales multiple underscores the weight of its retail business and the market’s focus on AWS margins, AI infrastructure spending, and long-term operating leverage.On top of that, Meta is the cheapest of the three on forward earnings at roughly 18 times, which explains why it could still fit the Ackman-style value basket despite the criticism around AI spending. However, the tension is that Meta’s lower multiple also underscores greater investor doubt about whether its AI capex will translate into returns as clearly as Alphabet’s and Amazon’s cloud businesses.Related: Cathie Wood buys $5.5M of surging tech stock

Jim Cramer has named plenty of favorite stocks over the years. His recent pick was trading in the low $20s less than a year ago.On June 30, the “Mad Money” host told viewers that Intel is now his top pick in the market. He credited CEO Lip-Bu Tan with pulling off one of the sharpest turnarounds in recent times.The timing stands out. Intel shares have more than tripled in 2026. Then, in the days right around Cramer’s call, it fell sharply. That combination is forcing a blunt question for investors. Is there still room to buy, or did the easy money already get made?Cramer says Lip-Bu Tan has “turned this company around”Cramer did not mince words. “Intel is currently my favorite stock. CEO Lip-Bu Tan has turned this company around,” he said on a Mad Money episode on June 30, CNBC reported. That comment reflected a bigger point. Cramer told viewers that Wall Street is now rewarding companies that supply the AI boom and punishing the hyperscalers that fund it. He named Intel (INTC), Micron (MU), Marvell (MRVL), SanDisk (SNDK), and AMD as the quarter’s biggest winners. It is also worth noting that Cramer’s call has money behind it. According to CNBC, Cramer’s Charitable Trust, the portfolio behind the CNBC Investing Club, initiated a position in Intel on June 3. The Trust has also added to it twice since then.

Intel shares have surged more than 205% in 2026 as CEO Lip-Bu Tan’s turnaround gains Wall Street attentionJHVEPhoto / Getty Images

Intel’s run from left-for-dead to market leaderIntel’s turnaround has a clear starting point. In August 2025, the U.S. government disclosed a roughly 10% equity stake in Intel. NVIDIA followed weeks later with its own $5 billion investment.The first quarter of 2026 backed up that bet. Intel posted revenue of $13.6 billion, up 7% from the same quarter last year. Non-GAAP earnings per share also came in at $0.29, far ahead of the estimate Wall Street had penciled in, according to the company’s SEC filing.More AI Chip Stocks:Top analysts set jaw-dropping Micron stock target after surgeBank of America resets Marvell stock price targetBroadcom CEO unnerves biggest AI backers in rattling pivotIntel’s dual identity as a chip designer and manufacturer is also becoming a selling point. AMD relies almost entirely on Taiwan Semiconductor for production. Intel, by contrast, is building a more localized supply chain. The supply chain is backed by federal subsidies and outside investment from Nvidia and SoftBank, according to TradingView.Related: Jim Cramer turns bullish on health care stock after years of doubtThat structural bet has already drawn outside money. In June, Paul Pelosi, husband of former House Speaker Nancy Pelosi, disclosed a multi-million-dollar position in Intel.Insiders have been buying too. Chief financial officer David Zinsner picked up 37,015 shares on June 1, 2026. The purchase is part of a broader pattern of insider transactions leaning toward buying, 24/7 Wall St reported.The valuation gap Cramer didn’t mentionHere is the complication. Intel closed at $120.35onJuly 2, down 6.54% over the prior five trading days. This happened even though the stock remains up more than205% for the year.At that price, Intel trades at more than 150 times forward earnings. That leaves little room for a disappointing quarter.Wall Street’s targets are scattered. The average consensus among 39 analysts is $100.18, well below where the stock trades now. Citi has been more confident at $130, and Bank of America raised its target to $160 from $135 on June 23. What could keep Intel’s rally goingFoundry execution stays on track. 18A yields are hitting targets, and both the Apple chip deal and Elon Musk’s Terafab project keep ramping up through the rest of 2026.Server chip demand keeps climbing as AI workloads send more business Intel’s way, which is the core of Cramer’s thesis.More banks follow Citi and Bank of America in setting triple-digit price targets, narrowing the gap between Intel’s stock and Wall Street’s consensus.Second-quarter guidance, which calls for $13.8 billion to $14.8 billion in revenue, comes in without a hitch.Why some investors are staying cautious anywayNot every desk is on board. Deutsche Bank’s note pointed to Bank of America being cautious. KeyBanc has also warned of buyer exhaustion as the rally has stretched further than fundamentals alone would justify.The risk is clear. A stock priced for such strong expectations has little cushion if a single quarter disappoints. That risk is compounded by Intel’s foundry business, which, although improving, has not yet proven it can turn a profit on its own. For readers weighing buying options, the practical takeaway is that Cramer’s endorsement is a signal about sentiment, not a guarantee about price. Investors who follow it should watch the same things the CNBC Investing Club is watching: 18A yields, the Apple and Terafab timelines, and whether second-quarter guidance holds up.Related: Top Broadcom insider unloads eye-popping number of shares