The Street

Something went wrong with an AI agent. It accessed a system it should not have. It took an action nobody authorized.

Now comes the hard part: figuring out who is responsible.

That is no longer a hypothetical. AI agents are moving from generating text and images to making decisions, using tools, and acting with less direct human involvement. The accountability question is arriving faster than the frameworks designed to answer it.

Why AI agents are creating a new accountability gap

A new study from Guidelight AI Standards, published Aug. 18, found that none of the five largest AI companies fully apply basic control measures to their own internal AI systems.

The nonprofit evaluated Anthropic, OpenAI, Google, xAI, and Meta across six safety practices including logging, monitoring, gated actions, and emergency shutdown capability.

Anthropic and OpenAI scored highest at C+. Google received a D+. xAI received a D-. Meta received an F, according to Reuters.

The grades matter beyond rankings. Both OpenAI and Anthropic have separately disclosed that their autonomous agents escaped testing environments and found vulnerabilities in other companies’ systems.

The incidents illustrate what happens when agents gain the ability to act rather than simply respond, Fortune reported.

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When an AI agent makes an unauthorized transaction, exposes sensitive information or takes an action that damages a business, responsibility becomes difficult to assign. The company that deployed the agent may point to the model provider. The model provider may argue the system was used in an unexpected environment.

The result is an accountability gap in which everyone is responsible for deploying AI but nobody is clearly responsible for what it actually does.

“AI governance can’t be an afterthought. The faster these systems become capable, the more important it is to know who is accountable when they make consequential decisions,” Isvari Maranwe, AI policy analyst and founder of Yuvoice, told TheStreet.

How regulators are trying to catch up with autonomous AI

Regulators are moving, but the technology is moving faster.

The European Union’s AI Act is one of the most significant attempts to build a legal framework for AI. Its high-risk system requirements entered enforcement on Aug. 2, 2026.

Article 14 of the Act, which covers human oversight obligations, applies explicitly to autonomous agents operating in high-stakes contexts, including healthcare, financial services, and critical infrastructure.

In May, six allied cybersecurity agencies, including CISA, NSA, and counterparts from Australia, Canada, New Zealand, and the United Kingdom, jointly published guidance titled “Careful Adoption of Agentic AI Services.”

It was the first coordinated multinational security document specifically addressing autonomous AI agents rather than generative AI broadly. The guidance identified five categories of agentic risk: privilege escalation, design failures, behavioral misalignment, structural brittleness, and accountability gaps, the Cloud Security Alliance (CSA) reported.

A separate CSA survey found that only 18% of organizations are confident that their existing identity and access management systems can adequately govern AI agents.

That is despite 40% of organizations already running agents in production. The governance infrastructure has not kept pace with the deployment rate.

The accountability question is arriving faster than the frameworks designed to answer it.Tatiana/Getty Images

Why human oversight needs to mean more than a policy statement

The standard response to AI risk is to say humans should remain in control. That principle becomes harder to enforce when agents operate at a speed and scale humans cannot monitor action by action.

A human employee may approve an AI agent to analyze thousands of transactions or execute software tasks.

If the agent makes hundreds of decisions in minutes, having a person available to intervene is not the same as meaningful oversight. The person may not know what to look for, may not receive an alert in time, or may not have the authority to intervene without disrupting the system.

Better governance asks specific questions. What is this agent authorized to access? Which decisions require human sign-off before the system acts? At what point does the system stop and escalate rather than proceed?

A company that can answer those questions has moved governance from a document into an operational reality. One that cannot has a policy, not a control.

The Center for Long-Term Cybersecurity at UC Berkeley has published research on agentic AI risk, identifying human control mechanisms, intervention points, escalation pathways, and shutdown capability as the practical components companies need in place. Not principles, but specific mechanisms.

“Ethics has to keep pace with capability,” Maranwe added. “AI systems acting with greater autonomy run major societal risks. Guardrails need to be developed with technologists and the largest companies in the world, which is why urgent regulation and an international treaty are key.”

What this means for companies and investors deploying AI agents

For investors, the AI governance debate is shifting from ethics to operational risk.

Companies deploying autonomous AI systems face potential financial losses from errors, regulatory penalties under frameworks such as the EU AI Act, and reputational damage from incidents like the ones disclosed by OpenAI and Anthropic.

The Financial Stability Board has examined responsible AI adoption in financial institutions specifically, reflecting how seriously governance is now being taken in regulated industries.

Companies are beginning to build governance infrastructure around AI agents, including identity controls, audit trails, permission systems, and human escalation mechanisms. That infrastructure mirrors what happened with cybersecurity and data governance: initially treated as optional, then made mandatory by regulation and liability, and eventually accepted as standard operating practice.

The organizations building that infrastructure now are doing it before regulators require it. The ones that wait may find the requirements arrive through enforcement action rather than planning.

When an AI system causes damage, the accountability question arrives quickly. The answer needs to be ready before the question is asked.

Related: Microsoft makes a controversial decision that changes its AI story

By almost every measure, Walmart is the country’s largest big-box retailer, which makes it an important barometer for consumer spending.

Which is why its latest earnings report caught some attention.

Comparable sales were up just 2.6% for Q2 FY2027, down from 4.1% during Q1 and marking its slowest comparable sales growth since the start of the pandemic.

But the news wasn’t all bad.

Walmart has continued to gain ground with high-income households, and e-commerce sales jumped 23% globally. Even more importantly, it’s identified several categories beyond grocery where significant growth may be possible.

Fashion is one of them.

Walmart announces Scenario

Walmart has plans to launch an all-new, inexpensive women’s clothing line in the coming weeks, according to an exclusive report from the Wall Street Journal.

The line, called Scenario, will include clothing, bags, and accessories geared at younger shoppers. Most items in the line will be priced at $25 or less in an effort “to appeal to the discount shoppers who are the foundation of Walmart’s business,” WSJ says. 

Traditionally, Walmart hasn’t dominated in the fashion space. 

Shoppers may head to the big-box store to stock up on basics like socks and t-shirts, but they’re heading to other retailers such as Target and Amazon for trendy, fashion-forward pieces to round out their closets.

But now, it seems, Walmart is working to change that.

Over the last seven quarters, the retailer has seen consistent growth in its clothing and accessory categories, WSJ reports. 

Celebrity partnerships, like last spring’s Lee and Kacey Musgraves collaborative line “Kacey Lee,” have played a role in this, but Walmart is on the hunt for an owned, house brand that could provide a stable foundation for long-term growth.

The retailer has had some success with its existing brand, Tried and True, which brings in around $2 billion annually and tends to appeal to shoppers in the 55+ age bracket. 

The line, which primarily consists of elevated basics, is serviceable, but not necessarily widely appealing to a younger, trendier crowd.

“We knew [Walmart wasn’t] servicing all their closet needs,” Denise Incandela, executive vice president of fashion for Walmart U.S., told WSJ. “While our customer gave us credit for extraordinary value, they weren’t giving us credit for style and quality.”

Scenario, then, is the retailer’s attempt to marry the two.

Walmart is adding Scenario, a new owned clothing line, to its offerings this fall. Aimed at younger, more fashion-forward consumers, items will be priced at $25 or less.Getty Images

Walmart wants more of its shoppers’ fashion spending

Historically, Walmart has earned the bulk of its revenues through grocery, a category with small margins.

But as the retailer navigates more cautious consumers and capitalizes on the recent influx of high-income shoppers, it’s been working to grow higher-margin areas.

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Fashion was identified as a particularly lucrative category fairly early on. Incandela was tasked with rejuvenating Walmart’s approach to apparel nearly a decade ago.

“80% of the money existing Walmart shoppers spent on apparel was at higher-priced retailers, not Walmart,” she told WSJ. 

That number implies that the retailer’s customers were willing to spend on fashion, just not on the sorts of fashions the company currently offers. 

So Walmart opened a fashion design studio in New York City and got to work building lines like Scenario to attract younger consumers who were shopping for clothes elsewhere.

But launches like Scenario don’t mean the retailer is fully doing away with budget-friendly basic lines such as Tried and True.

“This is an ‘and’ strategy,” Incandela said. “We’re still going to cover those big-volume driving socks and underwear and denim and Ts,” to serve budget shoppers alongside the more elevated items. 

Essentially, the strategy reflects a broader shift in how Walmart views its fashion business. 

The retailer isn’t trying to entirely abandon the value proposition that made it successful. Instead, it’s working to convince shoppers they don’t have to choose between affordability and style.

If Scenario can help Walmart close that gap, the retailer could have an opportunity to capture more of the fashion spending its customers are already doing elsewhere, boosting its overall revenues and establishing it as a go-to spot for the fashion-focused.

Related: DoorDash partners with iconic brands for back-to-school prep

While dozens of airlines around the world have filed for bankruptcy or shut down operations since the start of 2026 over the sudden spike in jet fuel prices, companies in adjacent industries have also hit upon hard times amid an uncertain economy.

A number of cruise booking and travel agencies, travel insurance providers and in some cases the companies overseeing delay and cancelation compensation have all ended up in bankruptcy in recent years.

The latest name to join that list is EUclaim, a Dutch company handling compensation for delays on flights originating out of or into European Union countries. On August 24, the District Court of Gelderland in the Netherlands formally declared the Arnhem-based company bankrupt after an initial “suspension of payments” period was moved into full bankruptcy after just three days.

EuClaim providing flight delay compensation declared bankrupt by Dutch court

The Dutch term refers to an intermediary legal process before a failing company is declared bankrupt.

In EUclaim’s case, a bankruptcy court declared the company insolvent after several repeated failures to make payments owed to creditors.

Related: Another airline files for bankruptcy, will liquidate

The company confirmed the bankruptcy to the national Dutch broadcaster but did not comment further on what it would mean for the business or any efforts to restructure. The court-appointed administrator put out a statement saying that, amid widespread uncertainty around how the insolvency process would affect ongoing claims for delayed flights, the process would continue without interruption.

“Everyone remains at work and customers of EUclaim also continue to receive their payments of awarded claims,” the curator told Dutch news.

EUclaim launched out of The Netherlands in 2007.Shutterstock

What is EUclaim and what kind of compensation does it provide

EUClaim was founded in 2007 out of the eastern region of The Netherlands bordering Germany as an advisory firm helping customers claim the compensation entitled to them under EU laws. According to its statistics, it served over 846,000 airline passengers since its launch.

The company files delay claims through the government for the customers and charges a fee only when the refund is issued. While a private company cannot provide customers with more than they are entitled to by the country’s laws, it promised to simplify the claim submission process for those unfamiliar or overwhelmed by the process.

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EUclaims claims to have received more than 600 reimbursement requests in January 2026 after heavy snow and winds caused widespread cancelations at Schiphol Airport (AMS) in Amsterdam.

Airlines and travel companies that shut down in 2026:

Flamingo Air and Aerodiana: The regional airlines with large client bases among tourists to the Bahamas and Peru, respectively, currently have suspended AOCs after fatal accidents in their home countries in July 2026.

Spirit Airlines: The largest airline shutdown of the year occurred when Spirit Airlines canceled all remaining flights on May 2. Although the airline had filed for Chapter 11 protection twice before, the skyrocketing price of jet fuel dealt the final blow.

Magnicharters: The Mexican low-cost airline canceled all flights and filed for bankruptcy in a shutdown that left thousands stranded.

Starflite Aviation: Houston-based Starflite Aviation had its AOC license revoked in March 2026, amid FAA claims that owners falsified pilot training records to bypass safety audits.

AlpAvia: Slovenian charter airline AlpAvia was also shut down in March 2026 due to financial problems.

Related: Another airline shuts down, cancels all flights due to low demand

Broadcom (AVGO) has become one of the largest companies in the world, worth about $1.75 trillion. 

Yet the shares recently pulled back hard, dropping roughly 7% in five trading days and about 25% from their 2026 high.

That kind of drop makes investors nervous. It also gets analysts talking.

Now a new voice has entered with a clear message, and the timing matters. 

A fresh rating landed just before Broadcom reports earnings on Sept. 2, a date that could set the tone for chip stocks into the fall.

Here is what the call says, why it arrived when it did, and what everyday investors should take from it.

Why BMO started Broadcom stock at Outperform with a $455 target

On Aug. 21, 2026, BMO Capital Markets began covering Broadcom with an Outperform rating, which is the firm’s version of a buy. 

Analyst Harsh Kumar set a price target of $455, according to Barchart. 

Kumar has covered semiconductor stocks at BMO for more than a decade. That track record gives his read on Broadcom’s AI position extra weight with investors.

With shares near $368, that target points to more than 25% upside over the next year.

Related: Broadcom stands to gain from new cloud deal

Kumar’s reasoning is simple. He called Broadcom the “leading AI supplier in custom ASIC (XPU) and networking.”

An ASIC is a chip built for one specific job. Companies like Google, OpenAI, and Anthropic use these custom chips to run their AI systems instead of relying only on off-the-shelf processors from Nvidia.

Kumar ranks Broadcom as the No. 2 AI chip company in the world, sitting right behind Nvidia.

Why it’s difficult for rivals to copy Broadcom’s AI business

Broadcom does two things that are tough to replace in an AI data center.

First, it designs custom chips for the biggest tech companies, work it has done for more than a decade. Second, it builds the networking parts that let thousands of chips send data to each other at high speed. 

Big AI clusters lose much of their value if the chips cannot share data quickly, and this is where Broadcom’s gear becomes hard to replace.

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That combination is why Kumar sees strong demand locked in for the next two years, TipRanks reported. 

Broadcom is working with nearly every major cloud provider and AI lab that is building its own chips. Management has guided toward more than $100 billion in AI chip revenue in fiscal 2027, a number CEO Hock Tan has repeated on earnings calls.

Why the timing of the BMO call matters for AVGO investors

This rating arrived during a stretch of heavy news for Broadcom. The company is in talks to raise more than $60 billion through debt financing, Bloomberg reported, to help finance AI chips for Anthropic and others. 

Blackstone and Apollo may take part, and the full package could reach $100 billion.

Here is what that means in plain terms:

Broadcom’s customers need enormous amounts of expensive hardware. This financing helps them pay for it, which helps Broadcom sell more chips.

A bullish rating during that news gives investors a second opinion that the demand behind those deals is real.

BMO started coverage of Broadcom with an Outperform rating days before the company’s Sept. 2 earnings report.SOPA Images / Getty Images

BMO’s call pushes back against a Google worry

One fear has followed Broadcom for a while, and this fear is that giant customers like Google could design their own chips in-house and stop buying.

BMO’s view cuts against that fear. 

Google’s growing spending and rising capacity targets actually increase near-term demand for Broadcom’s systems rather than reduce it.

That said, the risk is not gone. 

On Aug. 19, Marvell (MRVL) expanded its own custom-chip deal with Google, a reminder that Broadcom has real competition for this work.

How Broadcom’s numbers back up the bullish case

Narrative aside, the recent results give the thesis something to stand on.

In its fiscal second quarter, Broadcom’s revenue rose about 48% from a year earlier to about $22.19 billion, Broadcom reported.

Profit margins have been recovering as the company folds in VMware, the software business it bought in 2023.

A few things stand out for investors considering the stock:

Key figures behind Broadcom’s setup

Revenue: $22.19 billion in fiscal Q2, up about 48% year over year

AI target: More than $100 billion in AI chip revenue guided for fiscal 2027

Valuation: About 35 times forward earnings, a premium even to Nvidia

Dividend yield: 0.71%, a small but steady payout for long-term holders

The high valuation is the catch. Buyers are paying up today for growth that has not shown up.

Where BMO sits compared with the rest of Wall Street

Interestingly, BMO is one of the more cautious bulls on Broadcom.

The average analyst target sits at $506.29, which points to more than 37% upside from current levels. The consensus rating is Strong Buy.

So BMO’s $455 is bullish, but it is not the highest number on the board. 

Mizuho and TD Cowen both carry targets of $500 or more, TradingView reported.

How Broadcom stock stacks up in 2026

For context, Broadcom is still up about 6% year to date even after the recent slide, and it trades well below its 52-week high of $495.

Compared with the broader market, the stock has swung far more than the S&P 500 this year. 

That is the trade-off with AI chip names: bigger potential gains, but sharper drops when sentiment turns.

What Broadcom investors should watch next

Several things still need to go right for the bullish case to hold.

Earnings on September 2: Watch whether management raises or reaffirms the $100 billion AI revenue goal for fiscal 2027.

Margins: Look for continued improvement as VMware gets fully absorbed.

Customer concentration: A handful of large buyers drive most of the growth, so any change in their spending matters a lot.

Regulation: The European Commission is still pressing Broadcom over VMware, which could create friction.

For long-term investors, BMO’s call is a good reason to keep Broadcom on the watch list going into the earnings report. 

For anyone chasing the stock at 35 times forward earnings, the smarter move may be to wait for the Sept. 2 report before committing new money, since that is when the demand story gets tested with fresh numbers.

None of this is a guarantee, and the stock’s recent swings show how fast sentiment can shift. Do your own research and size any position to a level of risk you are comfortable with.

Related: Michael Burry increases his bet against popular chip giant 

Several mattress and bedding retailers are facing financial distress in 2026 after the industry finished 2025 with higher revenue.

The U.S. bed and mattress stores sector navigated a period of steady growth, with revenue rising by 1.3% to $28.4 billion year over year in 2025, according to IbisWorld analysis.

North Charleston, S.C.-based Mattress Warehouse of Charlotte Inc., which operates 10 stores, is not seeing the positive growth this year that it experienced in 2025.

Discount mattress and bedding chain No Bull Mattress & More‘s parent company has filed for Chapter 11 bankruptcy protection to reorganize its business.

No Bull Mattress & More’s parent company files for Chapter 11 bankruptcy.Shutterstock

No Bull Mattress & More files bankruptcy

Mattress Warehouse of Charlotte filed its Subchapter V petition in the U.S. Bankruptcy Court for the District of South Carolina on Aug. 24, listing over $374,000 in assets and over $2.8 million in debts.

Mattress Warehouse of Charlotte’s gross annual revenue had risen from about $1.98 million in 2024 to about $2.05 million in 2025. The mattress chain, however, had generated just over $825,000 in revenue in 2026 until the Aug. 24 filing date, according to its petition.

The debtor did not give a specific reason in its petition for filing for bankruptcy.

Operates 10 retail stores

Mattress Warehouse of Charlotte operates 10 No Bull Mattress & More locations in New Jersey, North Carolina, and South Carolina.

No Bull Mattress claims that its mattress prices are 55% to 80% lower than major mattress chain prices, according to its website. The retail chain says that mattress retailers like Mattress Firm and Sleep Number spent over $750 million on advertising in 2025.

Retailer spends almost zero on ads

“You pay for that! We spend virtually zero dollars on advertising and pass the savings along to you,” No Bull Mattress said in a message on its website.

The 24-year-old mattress retail chain also offers a multi-year price guarantee on top of its discounts.

“For five years after purchasing your mattress from us, if you find any comparable mattress in any brand or model for less, we will honor that price and pay you an additional 100% of the difference,” the company said on its website.

The debtor’s largest unsecured creditors include Greenbridge Funding LLC, owed $227,000; Rapid Finance, owed over $176,000; Wells Fargo Bank, owed $100,000; 3Z Brands, owed over $48,000; American Express, owed $48,000; and OnDeck Finance, owed $44,000.

Among the mattress and bedding retailers to file for bankruptcy protection in 2026 are Cerritos, Calif.-based Ortho Mattress, which filed for bankruptcy on June 1 to reorganize, and Humble, Texas-based SuperNova Furniture, which filed for Chapter 11 bankruptcy protection to reorganize its business on April 15, according to PacerMonitor.

No Bull Mattress & More locations:

Bluffton, 4380 Bluffton Parkway, Bluffton, S.C.

Charleston, 14 Windermere Blvd., Charleston, S.C.

Charlotte-Monroe Road, 2928 Monroe Road, Charlotte, N.C.

Charlotte- South Blvd., 7143 South Blvd., Charlotte, N.C.

Cherry Hill, N.J., 2060 Springdale Road #600, Cherry Hill, N.J.

Hilton Head Island, 1203 Main St. A, Hilton Head, S.C.

Indian Trail, 13803 E. Independence Blvd., Indian Trail, N.C.

Mt. Pleasant, 1220 Ben Sawyer Blvd., Mt. Pleasant, S.C.

North Charleston, 4220 Dorchester Road, North Charleston, S.C.

Summerville, 1580 Old Trolley Road, Unit E, Summerville, S.C.

Source: No Bull Mattress & More.

Related: 48-year-old casual dining chain closed 106 locations

Starbucks continues to reshape its corporate workforce as part of CEO Brian Niccol’s broader effort to simplify company operations, cut costs, and reorganize locations of certain support functions.

The coffee giant has already eliminated hundreds of corporate roles this year, consolidated parts of its regional office network, and expanded its presence in Nashville as it pushes ahead with its “Back to Starbucks” turnaround.

Now, another 224 employees who work at or report to Starbucks’ Seattle headquarters are affected, according to a Worker Adjustment and Retraining Notification (WARN) filing reviewed by TheStreet.

The latest filing, however, does not represent an entirely new round of cuts.

About 120 of the affected employees were offered the opportunity to continue working for Starbucks by transferring to its growing Nashville, Tennessee, office, but declined to relocate. 

Another approximately 104 separations are tied to organizational changes resulting from the restructuring announced by Starbucks in May.

The first separations are expected to take place on Oct. 19, with all of the layoffs completed by Nov. 1.

Starbucks layoffs follow several rounds of cuts

The August WARN notice follows several workforce reductions at Starbucks this year.

In May, Starbucks confirmed plans to eliminate approximately 300 U.S. support positions as it streamlined its domestic and international support organization.

A Washington WARN filing subsequently showed 252 employees at the Starbucks Support Center in Seattle affected by the restructuring.

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Starbucks said at the time that its leaders had reviewed their functions to sharpen the company’s focus, prioritize work, reduce complexity, and lower costs.

The company also began consolidating its U.S. regional support-office footprint, including offices in Atlanta, Burbank, Chicago, and Dallas, while retaining its Seattle headquarters and other offices.

Those reductions came almost simultaneously with another round of technology cuts.

In May, Starbucks disclosed that 61 employees working at its Seattle Support Center would lose their jobs as part of a reorganization of its technology department. 

Those cuts were separate from the approximately 300 U.S. support roles eliminated as part of the broader restructuring, a Starbucks spokesperson previously confirmed to TheStreet.

The affected technology positions included engineers, cybersecurity employees, architects, managers, program managers, and other corporate roles.

Earlier in the year, Starbucks also closed five Seattle coffeehouses, affecting 69 workers under a March WARN filing.

The latest 224-worker notice, however, is closely connected to another piece of the company’s transformation: Starbucks’ expansion into Nashville.

Starbucks consolidates and incurs impairment charges on coffeehouses.Brandon Bell / Getty Images

Starbucks shifts corporate work to Nashville

While Starbucks is cutting some corporate positions, it is building another major support center farther from its Seattle headquarters.

In April, the company revealed a $100 million investment to establish an additional corporate office in Nashville, where Starbucks expects to locate as many as 2,000 support jobs over five years.

Starbucks has emphasized that Nashville will complement rather than replace Seattle, where the majority of its support employees will continue to be based.

But the Aug. 20 filing demonstrates that the expansion is already changing where some existing employees are expected to work.

Approximately 120 employees covered by the latest notice were offered transfers to Nashville but chose not to relocate. 

Employees who elect to move are not being separated, according to the notice.

Starbucks had already formally approved the relocation of certain support functions to Nashville during its fiscal second quarter.

The company said the Southeast office gives it greater proximity to suppliers, access to a growing pool of technology talent, and a presence closer to regions where it expects future coffeehouse growth.

The other roughly 104 positions in the new WARN filing are primarily associated with Starbucks’ coffeehouse design and development operations.

Those changes came on a different timetable from the rest of the May restructuring after Starbucks brought in new leadership for the group.

Starbucks pursues $2 billion in cost savings

The layoffs and office consolidation form part of a much greater cost-cutting effort under Niccol.

Starbucks is targeting $2 billion in gross cost savings through fiscal 2028, spread across product and distribution costs, operating expenses, and general and administrative expenses.

The company said in May that its latest restructuring would further streamline domestic and international support functions and non-retail facilities while reducing complexity in its Starbucks Reserve and Roastery operations.

Starbucks initially estimated the plan would generate approximately $400 million in restructuring charges.

About $280 million was expected to consist of non-cash charges largely associated with long-lived assets and its non-retail real estate footprint, while another $120 million was expected to be cash charges primarily related to employee separation benefits.

Those expenses are now showing up in Starbucks’ financial statements.

Starbucks recorded $302.6 million in restructuring and impairment expenses during its fiscal third quarter, up from $20.8 million during the same period a year ago.

Of the fiscal 2026 restructuring costs recorded during the quarter, $72.6 million was associated with employee severance, separation, and other costs. 

Starbucks has also incurred substantial costs related to impairments of stores and non-retail facilities.

The restructuring extends beyond corporate offices.

Starbucks said it closed 247 stores during the first three quarters of fiscal 2026 as part of a restructuring plan first announced in fiscal 2025. 

Those closures targeted coffeehouses that Starbucks determined either lacked a viable path to profitability or failed to meet its standards for the physical environment it wants for customers and workers.

Starbucks says turnaround beginning to pay off

The latest workforce changes are underway as Starbucks begins reporting stronger financial results from its turnaround.

In its fiscal third quarter, global comparable-store sales increased 7.9%, while U.S. comparable sales also rose 7.9%. 

North America’s operating margin improved year over year, and Starbucks raised its full-year fiscal 2026 guidance.

Starbucks CFO Cathy Smith said consolidated general and administrative expenses declined approximately 20% during the quarter.

It reflects a combination of cost savings, the deconsolidation of Starbucks’ China business, and the comparison with expenses incurred a year earlier.

The company also recorded $53 million in restructuring-related savings in its corporate operations during the quarter and $164 million during the first three quarters of the fiscal year.

“We remain on track with our $2 billion cost savings plan,” Smith told analysts during Starbucks’ July earnings call.

At the same time, Starbucks is directing some of those resources back into its coffeehouses.

The company has been increasing labor investments, remodeling stores, and trying to restore what Niccol calls the Starbucks “third place” experience. 

It surpassed 1,000 coffeehouse upgrades in North America during the third quarter and now plans to complete at least 1,500 by the end of fiscal 2026.

That leaves Starbucks pursuing two strategies at once: spending more on the coffeehouses’ customers see while making the corporate organization behind them smaller, cheaper, and increasingly spread beyond Seattle.

Related: Walmart sales miss hides bigger shift in business

BJ’s Wholesale is planning a major change to its in-store offerings as it sees customer behavior shift. 

In the second quarter of this year, the warehouse club saw its comparable club sales (including gasoline) increase by 11.9% year over year, according to the latest earnings report. Its membership also grew to a record 8.5 million. 

As sales grew, BJ’s overall customer visits rose by 4.9% year over year, slightly outpacing Sam’s Club’s 4.7% increase, according to recent Placer.ai data. The stronger demand comes as BJ’s has been working to offer members lower prices using tariff refunds it received from the government. 

“Traditional grocers have been raising prices, creating an even more favorable backdrop for our value proposition,” said BJ’s Wholesale CEO Bob Eddy on an earnings call on Aug. 21.

“We continue to gain share, and as our price gaps improve, unit share has become an even clearer signal of member preference.”

BJ’s cuts its in-store assortment

As BJ’s sees increased demand, Eddy said the company plans to revamp its in-store assortment by reducing SKUs (stock-keeping units), or individual product varieties. 

“We find ourselves over-SKUed,” said Eddy. “It has been a longstanding opportunity. We have had efforts to cut SKU count in the past, and I would argue we didn’t prosecute that opportunity in the right way. We just cut SKUs, which cut sales, and then we added some SKUs back.”

He said the company is now in the process of “removing unnecessary choice” from its stores, a change members will gradually notice. 

Instead of carrying multiple versions of the same product, BJ’s will narrow its selection, concentrate sales among the remaining versions, and add new, innovative items in untapped categories.

Eddy said the company has already made these changes in its beverages and active nutrition categories, which are already yielding positive results. 

Related: BJ’s Wholesale plans major store changes as customers pull back

“Think about in traditional soda, we do not carry cans and 1-liter and 2-liters of the same product anymore,” said Eddy. “We are adding in healthy soda, like Poppi and things like that. That is the idea around the building.”

He said these changes will roll out over the next few years, with the next waves happening in September and toward the end of the year. 

“Our goal really is to take about 20% of our SKUs out over the next couple of years, and that will sort of happen ratably,” said Eddy. “That will largely get the chain down to where we find ourselves in new clubs, maybe a little bit lower than that.”

“Our average number of SKUs in a legacy club is about 7,500 or so at this point,” he continued … “I would like to get it down to about 6,000 – 6,500 SKUs, I think is the right place for us over time.”

Eddy said that this “ongoing effort” will be “powerful” and assured that BJ’s will be “sensitive” to its “members’ needs,” which will affect what will be cut from stores. 

BJ’s Wholesale is planning to reduce individual product varieties in its stores. Bloomberg / Getty Images

BJ’s sees demand rise from a growing group of customers

The changes come as BJ’s is seeing consumer demand reach unexpected levels, mainly due to more members flocking to its locations to escape elevated gas prices during the second quarter.  

The company’s comparable fuel gallon sales were up double digits, surpassing its first-quarter results, as it offered members more gas discounts.

“Sales, membership, margin dollars, and the bottom line all came in ahead of our expectations,” said Eddy. “Adjusted EPS was $1.36, up 19% year-over-year. To put that in perspective, we earned more in this single quarter than we did in the entire year we went public back in 2018.”

Eddy said most of BJ’s sales growth came from higher-income shoppers, warning that the “K-shaped economy persists” despite seeing “sequential improvement” in the second quarter. 

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“The vast majority of our growth continues to be driven by our higher-income members, which is consistent with what we’ve seen for some time now,” he said. “In an environment where consumers remain discerning with their dollars, we know our job is to make sure we’re putting the right products at the right value in front of every member who walks through our doors.”

While BJ’s has been lowering prices in its stores, it has also been introducing higher-priced items to its shelves to cater to its growing base of affluent shoppers, a change Eddy first teased in May. 

This shift in member behavior comes at a time when consumer sentiment continues to decline nationwide, notably among lower-income consumers, amid economic uncertainty. 

According to the University of Michigan’s Survey of Consumers data, consumer sentiment dropped by about 8% earlier this month.

“Although the early-month weakening in sentiment was pervasive across various demographic groups, notably large reductions were seen among older consumers, lower-income consumers, and those without a college degree,” said Joanne Hsu, a University of Michigan economist and director of the Surveys of Consumers, in a statement.

“These groups are all particularly vulnerable to any erosion of purchasing power stemming from inflation,” she continued. “Across all consumers, only 8% expect their income growth to exceed inflation in the year ahead, down from 18% in December 2024, a reflection of the belief that high prices will continue to be burdensome.”

In July, Bernstein analysts Zhihan Ma and Jeremy Miles warned in an analysis that the K-shaped economy isn’t going away anytime soon, according to a report from Investing.com.

“Although gas prices have started to moderate, inflationary pressure is likely here to stay,” said Ma and Miles in the analysis. “This means that low income consumers could remain under pressure, while middle to high income consumers remain value conscious.”

Related: Publix struggles to reverse concerning customer behavior

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Why we love this deal

We’re at that ideal time during the end of summer when the humidity and temperatures start to drop to near-perfect levels. When it’s not too hot, and there’s the slightest chill when the breeze hits, it’s prime time for spending every moment we can outdoors to enjoy the weather. That makes the right patio set all the more important and a worthwhile investment. If you want to make it even more relaxing, you’re going to want a patio set with rocking chairs.

The Ainfox 3-Piece Swivel Rocking Chair Patio Set is a fantastic choice, and it’s on sale for only $133 at Walmart. It was originally $360, but during a limited-time Flash deal, it’s 63% off. Not only does it have a rocking chair design, but the chairs also swivel, adding that extra layer of comfort and convenience to the affordable patio set.

Ainfox 3-Piece Swivel Rocking Chair Patio Set, $133 (was $360) at Walmart

Courtesy of Walmart

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Why do shoppers love it?

Complete with two swivel rocking chairs and a side table, you can create a cozy little oasis on small apartment balconies or spacious backyard patios. As we mentioned earlier, the chairs feature not just a rocking design, but they also swivel. The rocking motion gently moves you back and forth, like a standard rocking chair, making it soothing and relaxing. However, it also offers a 360-degree swivel to change the direction you’re facing. It allows for easy movement, without having to pick up and relocate the chair. 

The swivel rocking chairs feature sturdy metal frames accented with weather-resistant PE wicker rattan. They have both water-resistant back and seat cushions made of thick sponge that shoppers say are “surprisingly comfortable.” The cushions also have removable covers, making them easy to clean. 

Last but not least is the side table. It has a metal frame and a tempered glass top that’s durable and perfect for resting a morning coffee, post-dinner drink, or a book.

Related: Walmart’s patio set with rocking chairs provides comfort for just $52

Details to know

Chair dimensions: 26 inches long by 28 inches wide by 32 inches high.

Table dimensions: 18 inches long by 18 inches wide by 17 inches high.

Colors: Brown, beige, and gray.

According to Walmart shoppers, it’s sturdy, comfortable, and easy to put together. One reviewer said it’s one of their “best summer investments” for their backyard, adding that it’s so comfortable that guests fight over who gets to sit on the chairs. They also shared that they like the rocking feature, and the “removable covers make it easy for me to clean after the party.”

“I absolutely love this patio chair set,” another customer said. “The chairs are incredibly comfortable with thick cushions and a smooth swivel base that makes relaxing even more enjoyable…The set feels sturdy and well-made — definitely great quality for the price.”

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On sale for only $133, the Ainfox 3-Piece Swivel Rocking Chair Patio Set is a fantastic outdoor upgrade to enjoy the rest of summer and beyond. But as a limited-time Flash deal, this 63% discount won’t last for long.

Nancy Pelosi has been one of the most financially active members of Congress for years, and Wall Street has learned to observe when she files her disclosure forms. 

Pelosi is the former Speaker of the House, who represented San Francisco for 39 years and is known for reading the political and economic landscape better than most.

In a recent Periodic Transaction Report, Pelosi disclosed two purchases that land squarely in the Artificial Intelligence (AI) infrastructure trade.

Nancy Pelosi bought Intel. Again. And she made her first-ever bet on Bloom Energy.

According to the disclosure disclosure form, Pelosi purchased 50 call options on Intel with a $50 strike price expiring June 17, 2027, along with 10,000 Intel shares worth between $500,001 and $1 million, on July 24.

She also purchased 15,000 shares of Bloom Energy and 100 call options with a $100 strike price expiring June 17, 2027. 

The Intel position adds to the May call options my colleague at TheStreet disclosed in June. The Bloom Energy position is new.

INTC trades near $87.26, and BE trades near $204.02 as of late August, according to Yahoo Finance.

Bloom Energy is the most interesting purchase for Nancy Pelosi

Bloom Energy is not a household name, but increasingly a hyperscaler necessity. The 25-year-old, San Jose-based company manufactures solid oxide fuel cells that generate electricity on-site, independently from the grid. 

Data centers, AI factories, manufacturing facilities, and any large power consumer that cannot wait for grid capacity to catch up are potential Bloom customers.

The AI infrastructure boom has turned Bloom’s business from a niche clean energy play into something closer to essential infrastructure.

Related: Bloom Energy Q2 2026 Earnings Call: Recap of $BE Earnings, Outlook

 Every major U.S. hyperscaler and more than a dozen AI labs and neocloud data center operators have validated and approved Bloom’s power solutions for their AI factories, according to CEO KR Sridhar in the Q2 earnings release.

“Bloom is now a standard for AI onsite power,” Sridhar said.

The financial performance actually backs that positioning. 

Q2 2026 revenue hit $1.065 billion, surpassing $1 billion for the first time in company history, up 165.5% year over year (YOY).

Product revenue grew 215.4%. 

Gross margin expanded by 668 basis points. 

Operating income of $182.2 million compared to a $3.5 million operating loss a year earlier. 

Non-GAAP EPS of $0.78 grew $0.68 YOY. Full-year 2026 revenue guidance was raised to $3.9 billion to $4.2 billion, representing approximately 100% YOY growth at the midpoint.Source: Bloom Energy Q2 2026 Earnings Results

BE is up 134.80% year-to-date and 320.31% over the past year, according to according to Yahoo Finance. Pelosi’s call options with a $100 strike expiring on June 17, 2027 give her substantial leverage on any continued move higher.

Nancy Pelosi invests in Intel and Bloom Energy.Jim Vondruska/Getty Images

Nancy Pelosi’s Intel position adds to a bet that has already worked

Pelosi has been buying Intel at various points in 2026. In fact, the timing of her additions has generally been well-placed.

Intel reached an all-time high price of $142.35 on June 22, 2026. The current price, near $87.26 according to according to Yahoo Finance, reflects a significant pullback from that peak.

Even after the heavy pullback, Intel still records a year-to-date return of 136.48%, compared to an 11.79% gain from the S&P 500. The 1-year return stands at an aggressive 251% compared to 18% from the S&P 500.

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Her July 24 purchase of 10,000 shares and additional call options, worth between $500,001 and $1M, suggests she is accumulating more by buying the dip.

Intel ranks eighth on the S&P 500 year-to-date performance table, according to according to Slickcharts, trailing only SanDisk, Moderna, Dell, Micron, Seagate, Marvell, and Western Digital.

The fundamental case for Intel at current levels is the same one Goldman Sachs maintained after the Q2 beat. Intel is executing its strongest revenue growth in 15 years; the DCAI segment grew 59% year-over-year to $6.3 billion in Q2, and the 18A foundry process is advancing on schedule.

Q2 2026 revenue was $16.1 billion, up 25% YOY, according to Intel’s July 23 earnings release. Q3 guidance calls for $15.8 billion to $16.8 billion in revenue. 

In the same earnings report, CEO Lip-Bu Tan said AI is driving “unprecedented demand for compute.” CFO Dave Zinsner described the company as “meaningfully increasing investments” across equipment, cleanroom space, and substrates.

Pelosi’s call options with a $50 strike expiring June 17, 2027 are well in the money at current prices, giving her significant upside leverage if Intel continues its recovery from the post-high pullback.

Here is the 2-stock thesis behind Intel and Bloom Energy positions

Reading Pelosi’s recent disclosures together, I see a theme emerge. She is betting on the physical infrastructure of the AI boom, not the software or model layer.

Intel provides the compute, or the CPUs that power AI inference workloads, the foundry capacity that the U.S. needs for domestic semiconductor manufacturing, and the custom silicon relationships with hyperscalers.

Bloom Energy provides the power or the onsite fuel cells that let data centers and AI factories operate independently of congested electrical grids.

In my other coverage, I’ve reported on Bill Gates’ trust rotate toward companies that benefit from domestic economic activity and physical asset maintenance rather than purely financial holdings (Home Depot and FedEx Freight Holding Company).I see and know of a pattern in every successful investor. They have a system that works for them. It doesn’t have to look like anyone else’s. Find your edge, trust your system, and execute it. I do that, and it’s profitable.

So Intel and Bloom Energy are essential to the physical stack that makes AI run at scale. Neither is a consumer-facing tech story. Both carry near-term volatility from their respective growth transitions. And both have Pelosi’s money behind them with option structures that give her significant upside leverage through mid-2027.

She has been criticized for being one of the more financially active lawmakers in Congress. Well, whether that criticism is fair is more of a political question. 

I like to look at it from a different angle. What her disclosures consistently reflect is a sophisticated understanding of where structural economic demand is flowing. The AI power and compute trades she is making right now fit that pattern.

Related: Nancy Pelosi places big bets on two surging tech stocks

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Why we love this deal

Finding storage for everything can be more difficult than it sounds when your home doesn’t provide much storage to begin with. A small cabinet can easily be added to any room or corner to make use of an overlooked area while keeping your essentials off the countertops. It adds another place to put things away while still keeping the room functional and easy to navigate, and it keeps your items safe and secure. 

The Grusign Farmhouse Storage Cabinet is the perfect size to fit neatly in your bathroom, laundry room, kitchen, or entryway while still providing ample storage for smaller items. For just $51 at Amazon, this multi-storage cabinet is a solid option for your next organizational project. Shoppers can save 36% for a limited time, but hurry, because over 400 units have already sold recently.

Grusign Farmhouse Storage Cabinet, $51 (was $80) at Amazon

Courtesy of Amazon

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Why do shoppers love it?

This cabinet is made from moisture-resistant medium-density fiberboard, making it a great option for bathrooms and laundry rooms, as it can handle humidity well. The painted surface can be wiped clean, while the magnetic catches on the door help it close smoothly and stay closed. While it’s designed with bathroom storage in mind, it’s also great for toys, kitchen accessories, decorations, DIY accessories, and hobby items. It features an anti-tip device on the back for added safety and to ensure your items stay secure.

Related: Walmart is selling farmhouse storage cabinets that can help you get organized, starting at $67

The cabinet measures 22.05 inches wide, 11.81 inches deep, and 33.86 inches tall, offering plenty of storage space without taking up much floor space. This makes it great for condos, apartments, and other smaller areas. It features a top shelf that can hold up to 22 pounds and two smaller shelves that each hold up to 11 pounds, plus a larger shelf, two small drawers, and a cabinet with two cubbies. The shelf in the cabinet is also adjustable and removable.

Details to know

Size: The cabinet measures 22.05 inches wide, 11.81 inches deep, and 33.86 inches tall.

Storage options: This cabinet offers two drawers, closed storage with two cubbies, two larger shelves, and two smaller shelves. 

Versatile: The size makes it ideal even for small areas, and the moisture-resistant MDF board keeps it in good shape in humid areas like the bathroom. 

One reviewer wrote, “​It feels sturdy, the doors and drawers slide smoothly, and it didn’t take forever to put together. If you’re looking to create a custom storage setup or just need a solid, standalone cupboard for extra kitchen space, this is a great buy.”

“These replaced one of those plastic three-drawer chests in my daughter’s bathroom,” another shopper wrote. “The overall footprint is smaller but is far more efficient.”

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Whether you’re looking to clear off the bathroom counters or tidy up the entryway, the Grusign Farmhouse Storage Cabinet has plenty of storage solutions. The smaller footprint makes it a versatile option, and the adjustable shelf can make room for larger items as well. It offers a straightforward and good-looking way to add storage without bringing in large pieces of furniture that take up tons of space. Shoppers can save 36%, getting this cabinet for just $51.