Blockonomi

Key Highlights
The coffee retailer is creating proprietary AI-driven solutions to eliminate dependency on IBM and Microsoft platforms
Annual software expenditures currently total approximately $400 million, which the company aims to reduce substantially
Internal platforms may launch by late next year following comprehensive testing phases
The technology division expects to reduce spending by roughly $30 million in the current fiscal year
IBM shares declined approximately 3%, ServiceNow dropped 3.5%, and Salesforce fell 4% during premarket hours following the announcement
The Seattle-based coffee giant is constructing proprietary AI-enabled platforms to substitute enterprise solutions currently purchased from major technology providers like IBM and Microsoft. This strategic shift caused enterprise software stocks to retreat during Thursday’s early trading session.
IBM experienced a decline of approximately 3% before market opening. ServiceNow tumbled nearly 3.5% while Salesforce retreated by about 4% in premarket activity. SBUX shares climbed almost 3% during trading, reaching $106.93.
The global coffee chain is engineering alternatives for a Microsoft inventory management platform and an IBM-powered maintenance operations tool. According to Bloomberg reporting on an internal corporate presentation, certain homegrown systems may be operational by the conclusion of next year, contingent on successful validation processes.
Chief Technology Officer Anand Varadarajan informed staff members earlier this year that the corporation allocates approximately $400 million per year toward software purchases. He emphasized that significant “clear opportunities to reduce the spend in software” exist within current operations.
The company is conducting a comprehensive examination of “every contract and service” throughout its technology infrastructure as component of a wider initiative to eliminate $2 billion in total operational expenses.
According to reports, AI-powered development methodologies have been instrumental in creating the platform intended to supplant IBM’s maintenance management solution. The corporation has simultaneously encouraged technology personnel to expand their utilization of AI capabilities — with artificial intelligence adoption now influencing performance bonus calculations.
Financial Optimization and Workforce Adjustments
The enterprise technology unit anticipates decreasing its yearly budget by approximately $30 million throughout the fiscal period concluding in late September. This reduction encompasses roughly $10 million in software cost savings and approximately $13 million from decreased utilization of external contractors.
Starbucks has additionally been developing an internal point-of-sale platform to supplant Oracle Simphony for multiple years, according to sources familiar with Bloomberg.
Beginning in February of the previous year, the organization has eliminated approximately 2,300 positions, with a substantial portion representing technology-focused roles.
Geographic Expansion Amid Restructuring
Despite workforce reductions, the coffee retailer is enlarging its technological footprint through establishing new operational centers in Nashville and India, while maintaining its corporate headquarters in Seattle.
The corporation allocates roughly $400 million annually toward software expenditures in total. The internal documentation examined by Bloomberg indicated the enterprise technology division remains on schedule to achieve its cost reduction objectives for the present fiscal year.
The company’s GF Score registers at 81 out of 100. Profitability metrics receive an 8 out of 10 rating, although financial strength registers at merely 4 out of 10. The equity trades at a P/E ratio of 78.87.
Insider transaction data covering the previous three months reveals $0.9 million in equity sales, with zero purchase transactions documented.
The Bloomberg analysis additionally highlighted that artificial intelligence adoption has evolved into a formal performance indicator influencing bonus compensation calculations for certain employees within the technology organization.
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Key Takeaways
IBM enhanced its Bob development platform with multi-agent AI functionality, cost tracking analytics, and ready-made enterprise workflows.
The newly introduced Bobalytics feature monitors AI usage and resource distribution throughout development pipelines.
IBM released three specialized premium tiers focused on IBM Z mainframe, IBM i systems, and Java modernization projects.
Shares of IBM opened Thursday at $302.18 and declined approximately 2%, with second-quarter earnings scheduled for July 22.
Wall Street analysts rate IBM as “Moderate Buy” with a consensus price target of $306.47; Bank of America maintains a Buy rating with a $330 target.
International Business Machines unveiled significant enhancements to its Bob software development platform Wednesday, integrating multi-agent AI systems, comprehensive cost analytics, and pre-configured workflows designed for enterprise legacy system transformation.
Shares of IBM began Thursday’s session at $302.18 and were trading approximately 2% lower, remaining within its 52-week trading range of $212.34 to $332.46.
The centerpiece of this release is Bobalytics, an analytics tool engineered to track artificial intelligence consumption patterns and resource distribution across development workflows. The enhanced platform now enables parallel, model-native tool calling while deploying subagents to maintain context management and control expenditures.
IBM structured these enhancements across three premium subscription levels. The IBM Z package addresses COBOL and PL/I transformation alongside JCL analysis for mainframe systems. The IBM i package delivers remote file system connectivity and customized workflows. The Java Modernization package handles migration to Java 25, enterprise-scale refactoring, and dependency mapping.
The implications extend beyond incremental improvements. IBM referenced research indicating 85% of DevSecOps practitioners believe artificial intelligence has redirected the development constraint from code generation to code review and validation processes.
Early implementation results validate this transformation. Kevin Sligar, Chief Technical Architect at Jack Henry, confirmed the platform accelerates RPG development cycles while enhancing code quality. Saireshan Govender, Group CEO of Blue Pearl, reported completing a legacy modernization initiative in three days using IBM Bob—a project initially estimated at nine months requiring 14 engineers.
Analyst Perspectives
Wall Street maintains an optimistic outlook on IBM approaching earnings season. Bank of America Securities elevated its price objective to $330 with a Buy recommendation, forecasting Q2 revenue of $18.0 billion and earnings per share of $3.03. Barclays launched coverage with an Overweight stance and a $350 price target. JPMorgan upgraded IBM to Overweight in June, increasing its target to $291.
However, not all analysts share this enthusiasm. KeyCorp downgraded IBM to Sector Weight in June, while HSBC maintains a Hold position with a $231 price objective. Among 25 tracked analysts, 16 recommend Buy and nine recommend Hold. The consensus stands at “Moderate Buy” with an average price target of $306.47.
IBM’s latest quarterly performance exceeded Wall Street expectations. The technology giant delivered earnings per share of $1.91 versus analyst estimates of $1.81, while revenue reached $15.92 billion, surpassing the $15.60 billion consensus. Revenue climbed 9.5% compared to the prior year period.
Institutional Positioning
Regarding institutional movements, Sumitomo Mitsui Trust Group reduced its IBM holdings by 3.8% during the first quarter, divesting approximately 91,570 shares, maintaining a position valued at roughly $569.2 million. Collectively, institutional investors and hedge funds control 58.96% of IBM’s outstanding shares.
The company simultaneously increased its quarterly dividend distribution to $1.69 per share from $1.68, establishing a $6.76 annualized dividend with a 2.2% yield. This adjustment extends IBM’s consecutive dividend increase record to 30 years.
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Key Takeaways
Shares of Aehr Test Systems soared more than 13% Thursday following news of an additional production order for its FOX-XP wafer-level burn-in equipment.
The latest order represents the third FOX-XP system sale in 2026, after a $14 million deal in February and an additional purchase in March.
The purchase comes from the company’s primary silicon photonics client, which has already deployed and activated its initial system.
The FOX-XP platform is capable of simultaneously testing nine 300mm wafers with complete automation.
With fiscal fourth-quarter and full-year 2026 results scheduled for July 14, the timing adds positive momentum.
Shares of Aehr Test Systems (AEHR) surged more than 13% Thursday following the semiconductor equipment maker’s announcement of a fresh production order from its primary silicon photonics client. By midday trading, the stock maintained gains of approximately 11.75%.
The new purchase involves a fully automated FOX-XP wafer-level burn-in (WLBI) platform, combined with the FOX WaferPak AutoAligner system. This integrated setup enables simultaneous testing of up to nine 300mm wafers without any manual intervention.
The client is deploying this equipment to facilitate mass production of silicon photonics components designed for AI optical interconnects and hyperscale data center operations.
This represents a repeat purchase. The same client received its initial FOX-XP production unit during Aehr’s fiscal 2026, and the company has verified the system has been successfully integrated and is currently operational.
Chief Executive Gayn Erickson characterized the deal as “another important milestone” in the ongoing partnership with this customer, expressing satisfaction at “receiving this additional follow-on production order early in our new fiscal year.”
The deal also constitutes the third FOX-XP WLBI system purchase Aehr has secured in 2026. The initial order arrived in February with a $14 million valuation, while a subsequent order followed in March.
Order Volume Exceeds Projections
In April, Aehr disclosed that it secured over $92 million in orders throughout the latter half of fiscal 2026. This figure substantially exceeded the company’s prior guidance range of $60 million to $80 million.
According to analysts monitored by Fiscal.ai, projections show Aehr’s yearly revenue climbing from $49.8 million in 2026 to $85.1 million in 2027.
Broader market activity remained subdued Thursday. The Nasdaq increased 0.4% while the S&P 500 rose 0.2%. Industry competitors including Teradyne and FormFactor released no similar announcements, clearly indicating the AEHR rally stemmed exclusively from its order news.
Earnings Release Imminent
The strategic timing of Thursday’s disclosure carries additional significance. Aehr plans to publish its fiscal 2026 fourth-quarter and full-year financial results on July 14 — merely five days away.
This close timing probably encouraged investors to act swiftly. A verified production order from a major customer, announced just before earnings, represents a favorable indicator heading into the financial release.
Aehr specializes in manufacturing test and burn-in equipment for semiconductors spanning power devices, sensors, memory modules, processors, and silicon photonics elements. The FOX-XP system has served as the company’s primary revenue catalyst during the ongoing AI infrastructure expansion.
The company noted its customer is engineering technology designed to enhance data transmission speeds while reducing power consumption in AI processors and high-performance computing architectures.
As of Thursday morning, AEHR shares had appreciated over 13% during the session, with the third FOX-XP order of 2026 and the upcoming July 14 fiscal year earnings announcement both now clearly influencing investor sentiment.
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Key Takeaways
Rackspace (RXT) and Palantir (PLTR) finalized a binding framework agreement to implement Palantir Foundry and AIP within regulated and sovereign operating environments.
Rackspace has been designated as a preferred implementation partner for on-premise, private cloud, and sovereign Palantir installations.
Since the preliminary February 2026 announcement, Rackspace has expanded to roughly 400 Palantir-certified professionals throughout its organization.
An initial collaborative deployment was completed in less than two months, achieving a 94% decrease in quoting cycle duration for a solar tracking company in the United States.
RXT shares plummeted approximately 25% following the news, with the company holding a GF Score of 45/100 and a Financial Strength metric of only 2/10.
Rackspace Technology (RXT) and Palantir Technologies (PLTR) have formalized their collaboration through a definitive agreement establishing an operational framework tailored for regulated and sovereign enterprise clients. The announcement came on July 9, 2026, coinciding with a steep 24.79% decline in RXT share value.
This framework specifically addresses the requirements of organizations where data sovereignty and control are non-negotiable — sectors including healthcare facilities, financial institutions, utilities, and governmental agencies. These clients demand absolute clarity regarding data location and access protocols.
Palantir contributes its AI platform capabilities via Foundry and AIP. Rackspace provides the compliant infrastructure, certified technical personnel, and ongoing operational management necessary to execute these solutions within client-controlled environments.
The collaboration’s initial announcement occurred in February 2026. In the intervening months, Rackspace has developed approximately 400 Palantir-certified professionals spanning sales, engineering, delivery, and operations functions. This includes an international team of Palantir-certified Forward Deployed Engineers (FDEs).
The partnership’s inaugural customer implementation was completed within a two-month timeframe. Rackspace FDEs successfully deployed AI-powered workflows utilizing Palantir Foundry for a U.S. solar tracking equipment manufacturer. This deployment resulted in a 94% reduction in quote processing time — providing tangible early validation of the partnership model.
CEO Gajen Kandiah articulated the approach clearly: “This is deploy and operate, not deploy and leave.” The strategy emphasizes Rackspace maintaining continuous presence within customer environments rather than implementing solutions and disengaging.
Palantir CEO Alex Karp emphasized the strategic necessity from his perspective: genuine sovereign AI demands more than mere model availability. It requires a comprehensive operational infrastructure managing data governance, access permissions, model orchestration, and compliance auditing — all operating within the client’s controlled environment.
Internal Implementation Strategy
A significant commitment worth highlighting: Rackspace plans to deploy Foundry and AIP across over 70% of its internal back-office functions through its OneOS initiative. This demonstrates the company’s confidence in the identical technology stack being marketed to external clients.
This internal adoption strategy should enhance credibility with potential customers seeking validated production implementations before committing to deployments.
Market Reaction and Financial Concerns
The substantial stock decline accompanying the announcement raises significant questions. RXT’s GF Score registers at 45 out of 100, with Financial Strength rated at merely 2/10. Company insiders divested approximately $1.3 million in shares during the preceding three-month period.
The company’s P/S ratio stands at 0.59, notably low compared to historical averages and potentially indicating undervaluation relative to revenue generation. Market capitalization approximated $1.64 billion at announcement time.
Both organizations intend to collaboratively pursue opportunities across healthcare, financial services, energy, private equity, and mid-market segments. Substantial private cloud and sovereign deployment initiatives are under development, featuring integrated teams of Rackspace and Palantir FDEs operating directly within client infrastructures.
Rackspace’s overall GF Score of 45 incorporates concerning ratings in profitability (3/10) and growth (3/10) metrics as well, presenting investors with an ambiguous outlook as this partnership advances into its operational phase.
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Key Takeaways
Evercore ISI maintained its Outperform stance with a $1,100 price objective following Costco’s June sales figures
Comparable store sales climbed 7.6% domestically and 7.0% worldwide, with gas prices and currency fluctuations stripped out
Goldman Sachs continued its Buy recommendation at $1,159; J.P. Morgan sustained its Buy designation at $1,100
Domestic foot traffic increased 3.2%, marking the seventh month in a row with two-year trends exceeding 6%
More challenging year-over-year metrics anticipated for July and August, with traffic comparisons becoming tougher by 100–150 basis points
Costco (COST) stock continues to receive support from Wall Street analysts following the warehouse club’s June sales disclosure, with several prominent firms reaffirming their positive outlooks and target prices.
Evercore ISI confirmed its Outperform designation while maintaining a $1,100 price objective. Analysts at the firm highlighted Costco’s core comparable store sales advancement of 7.6% domestically and 7.0% on a worldwide basis, with both metrics adjusted to exclude gasoline and currency translation impacts.
COST was hovering near the $1,050–$1,060 zone when these ratings were issued, suggesting Evercore’s target represents moderate appreciation potential from present levels. Data from InvestingPro indicates the shares may be trading above their Fair Value calculation.
Domestic customer traffic expanded 3.2% during June. This performance maintained the two-year combined traffic comparison above the 6% threshold for a seventh straight month, a pattern that Wall Street observers have been monitoring attentively.
Fuel station revenues contributed positively to the overall picture. These sales surged in the low-30% territory on a year-over-year basis, powered by a 22% increase in average retail prices and high-single-digit volume expansion in gallons dispensed.
Domestic transaction size growth, excluding gasoline, registered at 4.3%. Evercore’s analysis suggested approximately 1–2% stemmed from price inflation, with the remainder attributable to increased items per shopping trip and product category mix shifts.
Global Markets Show Moderation
Beyond U.S. borders, performance showed some moderation. Canadian core comparables reached 4.9%, representing a 120-basis-point decline from the preceding three-month average. Additional international territories recorded 5.6%, likewise down 110 basis points from recent performance levels.
June’s aggregate comparable sales expansion totaled 8.8%, although core comparables of 7.0% marked a pullback from May’s 8.7% figure.
Goldman Sachs analyst Kate McShane preserved a Buy recommendation with a $1,159 price objective. McShane observed that while June figures landed marginally below consensus forecasts, the shortfall was partially attributable to sales cannibalization from recently opened warehouses rather than any weakness in fundamental demand patterns.
McShane further emphasized that company leadership identifies no significant shifts in shopper behavior or the competitive landscape. Membership renewal patterns and customer traffic metrics remain healthy.
J.P. Morgan aligned with this perspective, likewise sustaining a Buy rating at a $1,100 price target.
Baird preserved its Outperform stance at $1,100. Gordon Haskett confirmed its Buy designation and elevated its target to $1,200, characterizing June’s 7.0% same-location sales expansion as marginally below expectations but nevertheless robust.
More Difficult Year-Over-Year Metrics Approaching
Not all analysts shared the same enthusiasm. DA Davidson and Citi both retained Neutral classifications, establishing targets at $1,000 and $1,020 respectively. Both institutions referenced the sequential slowdown in sales momentum from May through June.
Telsey confirmed its Outperform rating at $1,135 but conceded June’s performance fell short of its 10.6% forecast.
Evercore cautioned that year-over-year comparisons will intensify throughout the summer months. Traffic benchmarks become 100 basis points more demanding in July and 150 basis points more challenging domestically.
Costco’s aggregate revenue expansion over the trailing twelve-month period registers at 9.23%, underpinning a market capitalization of $422.69 billion.
Goldman’s McShane also referenced Costco’s pilot programs with standalone fuel facilities as a development worth monitoring, characterizing it as evidence of the company’s strategic focus on long-term member value enhancement.
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Key Takeaways
Shares of Ionis Pharmaceuticals plummeted nearly 20% following disappointing results from the CARDIO-TTRansform Phase 3 clinical trial for eplontersen
Collaboration partner AstraZeneca saw its stock decline approximately 9% following the announcement
The experimental therapy demonstrated no effectiveness in patients already receiving stabilizer medications, who represented most trial participants
A subset of patients not taking stabilizers experienced a 29% reduction in risk, providing limited encouraging data
Competing pharmaceutical companies Alnylam and BridgeBio saw their shares jump over 10% as a significant competitor exits the ATTR-CM market
Shares of Ionis Pharmaceuticals (IONS) tumbled approximately 17-20% Thursday following disappointing news from the company and its partner AstraZeneca (AZN) that their experimental drug eplontersen missed its primary goal in the Phase 3 CARDIO-TTRansform clinical study.
The clinical study evaluated eplontersen’s ability to lower the risk of cardiac mortality and recurring cardiovascular complications in individuals with transthyretin-mediated amyloid cardiomyopathy (ATTR-CM) versus placebo across a 140-week period. The drug failed to demonstrate this benefit.
IONS shares were down approximately 17.59% Thursday. This extends the stock’s year-to-date decline to 11.78%, although shares remain elevated roughly 99% over the trailing twelve months.
American-listed shares of AstraZeneca dropped about 9% following the identical announcement, highlighting the significant stakes both pharmaceutical firms had in this trial’s success.
The study recruited participants where 57% were already receiving stabilizer therapy at baseline, with an additional 24% initiating such treatment during the trial. Within this patient population, eplontersen failed to show any therapeutic benefit. This represents a significant challenge since stabilizer medications have become standard practice in current clinical care.
Positive Results in Limited Population — Questions Remain
The data contained one bright spot. Among participants not receiving stabilizer drugs, eplontersen demonstrated a 29% decrease in the composite risk of cardiac death and recurring complications. The therapeutic candidate also achieved robust, lasting decreases in transthyretin protein concentrations and successfully met various secondary measures.
However, Wall Street analysts remained skeptical about the partial success providing a viable development pathway. Stifel’s Paul Matteis noted that “trying to approach regulators here on these data would seem like a stretch.” Neither Ionis nor AstraZeneca disclosed intentions to pursue regulatory authorization or initiate an additional clinical study.
Chief Executive Brett Monia expressed disappointment, highlighting the evolving therapeutic environment where increasing numbers of patients begin stabilizer therapy prior to trial enrollment. Complete study results will be unveiled at the European Society of Cardiology Congress in August 2026.
For Ionis particularly, the unsuccessful trial eliminates anticipated profit-sharing arrangements, royalty payments, and additional milestone compensation linked to eplontersen’s commercial success in cardiovascular disease.
Competitor Stocks Rally as Market Competition Narrows
Alnylam Pharmaceuticals and BridgeBio both experienced double-digit percentage gains Thursday. With eplontersen’s prospects in ATTR-CM now uncertain, Alnylam’s Amvuttra appears positioned to maintain its standing as the sole RNA-silencing treatment in this therapeutic area.
Stifel’s Matteis characterized the development as “a huge positive” for Amvuttra. Pfizer’s Vyndamax, currently the dominant product with sales exceeding $6 billion annually, also benefits from reduced competition.
Jefferies analyst Michael Leuchten suggested the greater concern for AstraZeneca extends beyond lost revenue — it’s the damage to reputation. The pharmaceutical giant had approached the data readout with substantial optimism. “AstraZeneca is meant to be able to have exceptionally good trial design ability,” he observed.
Street consensus on IONS before Thursday stood at Strong Buy, featuring an average price objective of $104.61. These recommendations will likely undergo revision.
Trading activity in IONS reached approximately 3 million shares Thursday, significantly exceeding the three-month daily mean of 1.86 million.
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Key Highlights
Financial regulator mandates elimination of OTP-based authentication systems within one year.
Platforms must transition to passkeys and physical security keys instead of SMS or email codes.
Major internet brokers expected to implement enhanced security protocols without delay.
Enhanced surveillance requirements for login attempts, transaction patterns, and fund withdrawals.
Executive leadership held directly responsible for security breaches affecting customer assets.
Hong Kong’s financial regulator has mandated that digital asset exchanges and internet-based brokers eliminate one-time password systems in favor of advanced security mechanisms. The directive addresses escalating threats from credential theft, account hijacking, and sophisticated phishing operations. Financial institutions have one year to complete the transition.
Regulatory Authority Introduces Stricter Authentication Requirements
The SFC distributed the directive to online brokerage firms and virtual asset platform operators this Thursday. The mandate specifies phishing-resistant authentication mechanisms for user access and device authorization procedures. The framework encompasses enhanced safeguards for account entry points and verification of trusted hardware.
The financial watchdog explicitly prohibited continued reliance on temporary password systems for access control and device registration. This prohibition encompasses verification codes delivered via text message, electronic mail, and application-generated authentication sequences. The authority cited increasing phishing vulnerabilities and the availability of superior security technologies.
Passkey technology, physical authentication tokens, and cryptographic device verification satisfy the updated requirements. These approaches minimize exposure to compromised credentials and intercepted authentication codes. Exchanges must migrate from code-dependent verification to cryptographically-secure authentication frameworks.
One-Year Implementation Window Established for Compliance
The regulatory body instructed affected organizations to execute these transitions at the earliest opportunity. Complete compliance across all covered entities must occur within twelve months following the circular’s publication date. Larger internet brokerage operations should proceed with immediate adoption given their substantial user bases.
The authority additionally requires enhanced monitoring capabilities across all account operations. Brokerage platforms and virtual asset operators must identify anomalous login behaviors, unusual trading activity, and suspicious withdrawal requests. Organizations must also provide prompt notification to account holders when significant events affect their profiles.
The SFC emphasized that executive leadership bears ultimate responsibility for safeguarding client accounts. Management teams will face direct accountability when security deficiencies result in customer financial losses. Consequently, organizations face mounting pressure to enhance prevention strategies, incident response capabilities, and governance frameworks.
Territory Elevates Digital Security Protocols
This regulatory action follows a sustained increase in phishing campaigns and social manipulation tactics targeting digital currency markets. Throughout early 2026, such attacks inflicted substantial financial damage across the international cryptocurrency ecosystem. This pattern prompted regulatory bodies to intensify focus on access control mechanisms.
Hong Kong documented significant fraudulent activity and counterfeiting operations in recent cybersecurity assessments. These threats represented a considerable portion of documented security breaches during 2025. The financial regulator positioned strengthened authentication as a component of comprehensive market safeguards.
The watchdog also encouraged users to maintain robust security practices for passwords, hardware devices, and account access methods. Customers should exclusively access their accounts through verified official websites and authorized platform applications. Users should immediately report any suspected unauthorized access or questionable transaction activity.

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Key Takeaways
Rocket One (RKTO) secured entry into SpaceXAI’s API program, unlocking access to advanced multimodal AI capabilities
Shares rallied approximately 24% following the announcement, reaching $0.80 with a $15.35 million market capitalization
The API access encompasses AI systems for programming, logic processing, text generation, visual analysis, video processing, and audio applications
The defense tech company intends to deploy these models throughout its AI infrastructure, defense automation software, and aerospace technology projects
Rocket One maintains proprietary rights to advanced nanomagnetic and spintronic semiconductor innovations
Rocket One (RKTO) revealed on Wednesday that it has successfully joined the SpaceXAI API program, securing the defense and AI technology company access to SpaceXAI’s cutting-edge multimodal artificial intelligence systems. Shares responded with a significant rally of approximately 24%, reaching the $0.80 level.
With a modest market capitalization of $15.35 million, the firm now gains entry to SpaceXAI’s comprehensive suite of AI models spanning programming assistance, logical reasoning, text generation, image processing, video analysis, and voice recognition technologies.
According to the company, these advanced capabilities will undergo testing and integration throughout multiple operational domains, including core AI infrastructure development, autonomous military software systems, and space-based computing platforms. This represents an ambitious roadmap for an organization of Rocket One’s current scale.
Chief Executive Officer Robb Knie emphasized that securing access to leading-edge foundation models represents a critical milestone as the organization constructs what it characterizes as an AI-centric platform tailored for the defense and aerospace sectors.
The SpaceXAI partnership is designed to complement Rocket One’s current technology portfolio, which features proprietary nanomagnetic and spintronic semiconductor innovations.
The firm is actively engineering what it terms radiation-resistant AI processor technology — specifically architected to operate reliably in low-Earth orbital environments, deep-space missions, and defense scenarios where conventional silicon chips experience degradation.
This nanomagnetic matrix multiplication architecture serves as a specialized hardware accelerator optimized for machine learning computations. The technology remains in development, having not yet been manufactured as a complete integrated circuit or tested in actual space conditions.
Latest Developments at Rocket One
The SpaceXAI partnership announcement follows several months of significant corporate activity. During June, Rocket One disclosed approximately $8.4 million in available cash resources, generated through an at-the-market equity offering program.
The organization also unveiled Swarm Stage AI, an autonomous drone fleet defense system designed for military agencies, government entities, and security organizations. The platform leverages technology obtained through the acquisition of SkyStage, a commercial drone coordination company.
Regarding leadership expansion, Rocket One appointed retired Colonel Robert “Shane” Kimbrough — a veteran NASA astronaut — to its Space Advisory Board.
Additionally, the company recently satisfied Nasdaq’s minimum share price standards after sustaining a closing price above $1.00 for ten straight trading sessions.
Analyst Perspectives
A single analyst has established a $5.00 price objective for RKTO. Projections indicate potential earnings of $8.21 per share for the 2026 fiscal year, though this estimate appears notably elevated relative to the company’s present share price and overall valuation.
InvestingPro data suggests the stock may be trading below its intrinsic value according to their Fair Value analysis framework. Nevertheless, shares remain down 44% year-over-year despite Wednesday’s substantial gains.
The organization’s biotechnology portfolio — encompassing research programs designated HT-001, HT-KIT, HT-ALZ, and a GDNF-focused metabolic initiative — operates through a fully owned subsidiary, maintained separately from primary defense and aerospace operations.
As of Wednesday morning trading, RKTO was changing hands at $1.0001, representing a daily increase of $0.1977.
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Key Takeaways
Rocket Lab delivered Q1 revenue of $200.3 million, marking a 63.5% increase compared to the same period last year, with a contract backlog reaching $2.2 billion
An $8 billion acquisition of Iridium Communications is pending, which would integrate an operational satellite constellation serving 2.5 million subscribers
The company secured a $190 million HASTE agreement with Kratos Defense, representing its largest launch contract to date
Wall Street consensus rates the stock a “Moderate Buy” with a mean price target of $108.24, compared to the current trading price near $83.91
Notable headwinds include Neutron development setbacks, continued quarterly losses, significant insider share disposals, and reliance on key customers
Rocket Lab (RKLB) is currently priced at $83.91, having retreated from its 52-week peak of $151.00, amid a broader sector cooldown following the excitement around SpaceX’s public market debut.
The addition of SpaceX to the Nasdaq-100 index on July 7 captured significant investor interest and redirected funds into aerospace equities. Yet Rocket Lab’s trajectory offers compelling fundamentals that stand on their own merit.
First-quarter revenue reached $200.3 million, representing a 63.5% year-over-year surge and surpassing Wall Street’s consensus estimate of $189.65 million. GAAP gross margin improved to 38.2%, while the contract backlog expanded 20.2% from the previous quarter to $2.2 billion.
During the first quarter, the firm executed 31 new agreements for its Electron launch vehicle and HASTE services, alongside five additional reservations for Neutron, the company’s next-generation rocket currently under development. By quarter-end, more than 70 committed launches populated the company’s order book.
Management projected Q2 revenue between $225 million and $240 million, implying approximately 16% sequential expansion at the midpoint.
Iridium Acquisition Transforms Business Model
The proposed $8 billion takeover of Iridium Communications (IRDM) represents a strategic pivot. Iridium currently maintains an active low-Earth-orbit satellite constellation serving over 2.5 million subscribers spanning government agencies, aviation, maritime industries, and defense organizations.
Should the transaction finalize, Rocket Lab will transition from purely manufacturing and launching satellites to also managing orbital infrastructure and delivering telecommunications services directly. This shift fundamentally alters the revenue profile and expands the total addressable market significantly.
In March 2026, the company finalized a $190 million HASTE agreement with Kratos Defense supporting the U.S. Department of Defense’s MACH-TB 2.0 hypersonic test initiative. The contract encompasses 20 test missions across four years and stands as the most valuable single deal in corporate history. Defense-related revenue streams are increasingly material to overall performance.
Institutional capital continues flowing in. Swedbank AB expanded its position by 11.4% during Q1, purchasing 58,081 additional shares to bring its total holdings to 567,331 shares, worth approximately $36.4 million. Institutional ownership now comprises 71.78% of outstanding shares.
Significant Challenges Remain
Neutron, the heavy-lift vehicle essential for larger government and commercial payloads, has been rescheduled to Q4 2026 following technical complications. Additional postponements would likely pressure investor sentiment and the share price.
Profitability remains elusive. The company posted a net loss of $45 million in Q1, with adjusted EBITDA losses forecast between $20 million and $26 million for the current quarter.
Revenue concentration presents another vulnerability. The five largest customers generated 49% of 2025 revenue, while the top five backlog accounts represent 77% of committed future business. U.S. government contracts alone comprised 47% of 2025 revenue.
Insider transactions have accelerated recently. CFO Adam Spice divested $8.9 million in shares during May, while SVP Arjun Kampani sold $9.5 million worth in June. Collectively, insiders have liquidated $362.8 million in stock over the trailing 90-day period.
Analyst price objectives span from $96 to $150, with Morgan Stanley’s optimistic scenario reaching $293. The consensus rating stands at “Moderate Buy” with a mean target of $108.24—representing meaningful upside from current levels.
Rocket Lab successfully executed the U.S. Space Force’s VICTUS HAZE mission ahead of the projected timeline, achieving a record turnaround for responsive launch operations that management believes strengthens the company’s standing in national security space missions.
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Key Highlights
Virax Biolabs entered into an exclusive distribution agreement with Fosun Diagnostics for six Southeast Asian countries
The partnership encompasses the company’s ImmuneSelect immune profiling portfolio for research applications
Thailand will serve as the initial launch market with a focus on tuberculosis research before regional expansion
Fosun Diagnostics operates under Fosun Pharma, a healthcare giant with approximately $5.8 billion in 2025 revenues
Shares of VRAX climbed more than 241% following the announcement; the company maintains a market capitalization of $2.53M
On July 9, 2026, Virax Biolabs (VRAX) revealed that its United Kingdom-based subsidiary has entered into an exclusive commercial distribution agreement spanning multiple countries with Fosun Diagnostics. The announcement triggered a dramatic 241% surge in VRAX shares during trading.
The partnership establishes Fosun Diagnostics as the exclusive distributor of Virax’s ImmuneSelect portfolio — a collection of research-grade immune profiling tools — throughout six key Southeast Asian territories: Thailand, Vietnam, Indonesia, the Philippines, Singapore, and Malaysia.
Fosun Diagnostics operates as part of Fosun Medtech, itself a segment of Fosun Pharma. With Fosun Pharma recording RMB 41.662 billion in 2025 revenues (approximately $5.8 billion), Virax has secured a partnership with a financially robust distribution network throughout the region.
According to the agreement’s terms, Virax will deliver products such as ELISpot assay plates — specialized tools designed to evaluate cellular immune reactions — to Fosun through a purchase order system. The pricing model incorporates volume-based discount structures.
The collaboration launches immediately with product availability and initially concentrates on tuberculosis research initiatives in Thailand, with subsequent rollout planned for the remaining five markets.
The exclusive nature of the partnership depends on achieving specified minimum purchase volumes and performance benchmarks. Failure to reach these targets could result in modifications to the exclusivity provisions.
The agreement structure also provides flexibility for future expansion into supplementary product categories, increased supply volumes, and possible OEM or white-label manufacturing arrangements.
Understanding ImmuneSelect
ImmuneSelect represents Virax’s commercially available portfolio of research-only products. This line operates independently from ViraxImmune, the company’s diagnostic platform currently undergoing clinical trials and regulatory review processes.
This differentiation is significant. ImmuneSelect has already achieved market availability and is attracting commercial partnerships. ViraxImmune remains in the development pipeline.
James Foster, Chairman and CEO of Virax Biolabs, characterized the partnership as “a major step forward in the commercial rollout” of the ImmuneSelect platform throughout Southeast Asia.
Leon Zhang, International Commercial Head for China Domestic Business at Fosun MedTech, indicated that Fosun is exploring ELISpot-based research opportunities across the regional markets.
VRAX Company Overview
Virax Biolabs operates with a market capitalization of merely $2.53 million, positioning it firmly in micro-cap territory. The stock’s average daily trading volume hovers around 1.05 million shares.
The latest analyst coverage on VRAX assigns a Buy rating, accompanied by a $1.00 price target.
Current technical sentiment indicators classify the stock as Sell, creating a notable contrast with today’s substantial upward price movement.
The 241%+ gain places significant attention on the stock, though price volatility of this magnitude is relatively common for companies operating at this market capitalization level.
As of July 9, 2026, the distribution framework is operational and Fosun can immediately begin submitting purchase orders under the terms of the agreement.
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Key Takeaways
Andrew Boone from Citizens launched Tesla coverage with a Hold rating and no set price target, pointing to distant profitability from robotaxis and humanoid robots
Shares began Thursday trading at $394.11, reflecting a roughly 12% decline year to date within a 52-week span of $293.55–$498.83
The automaker anticipates no substantial robotaxi revenue before 2027
Just 40% of Wall Street analysts recommend buying Tesla shares, significantly under the 55–60% Buy rating norm for S&P 500 companies; consensus target price stands at $408.52
Institutional shareholders control 66.2% of Tesla’s equity, while company insiders have offloaded more than $12.3 million in shares over the last quarter
Tesla (TSLA) shares kicked off Thursday’s session at $394.11 following Citizens analyst Andrew Boone’s debut coverage featuring a Hold recommendation without a specific price objective.
Boone’s cautious stance revolves primarily around timelines. While he acknowledges “immense” upside in Tesla’s physical AI initiatives — including autonomous taxi fleets and humanoid robotics — he believes substantial earnings from these ventures remain too distant to warrant a bullish position currently.
Tesla debuted its autonomous taxi service in Austin during June 2025. The program has since grown into several additional markets, yet company leadership doesn’t anticipate significant robotaxi-generated revenue until 2027 or later.
Boone also highlighted concerns that a gradual expansion could ultimately disappoint shareholders who have already baked considerable optimism into current valuations.
Tesla shares climbed 0.4% during premarket hours to $395.77 before regular trading commenced. Heading into Thursday’s session, the stock had declined approximately 12% since January, though it remains up roughly 33% over the trailing twelve months.
The Hold recommendation hasn’t substantially impacted trading momentum. Tesla had already retreated about 6% across the previous two sessions entering Thursday, leaving the stock essentially unchanged for the week.
Analyst Community Remains Divided
Boone’s conservative outlook mirrors broader Wall Street uncertainty. Approximately 40% of analysts tracking Tesla currently recommend buying shares — markedly below the 55–60% Buy-rating benchmark typical for S&P 500 constituents.
Among the 45 analysts monitored by MarketBeat, 21 maintain Buy ratings, 20 hold neutral positions, and four recommend selling. The average price target across all analysts sits at $408.52.
Recent rating adjustments have varied considerably. RBC lifted its target to $500 alongside an Outperform designation. Mizuho reduced its objective from $540 down to $480 while maintaining its Outperform view. Both Guggenheim and HSBC currently hold Neutral/Hold positions.
Tesla delivered Q1 earnings per share of $0.41, surpassing the $0.39 analyst consensus. However, revenue totaled $22.39 billion, falling short of the $22.96 billion forecast. Year-over-year revenue increased 15.8%.
Institutions Accumulate While Company Insiders Exit
Despite divided analyst opinions, institutional investors continue expanding their positions. Resona Asset Management increased its Tesla allocation by 1.8% during Q1, elevating its holdings to 892,972 shares valued at approximately $329 million. Tesla now represents Resona’s ninth-largest portfolio position.
Additional investment firms such as Crestwood Advisors, Calamos Wealth Management, and Private Capital Advisors similarly boosted their Tesla exposure. Institutional and hedge fund ownership currently comprises 66.2% of total shares outstanding.
Insider activity tells a contrasting story. Director Kathleen Wilson-Thompson divested 26,409 shares at $378.11 on April 30, trimming her position by 35.3%. CFO Vaibhav Taneja sold 3,000 shares at $450 on May 13 for tax withholding purposes. Combined insider dispositions over the past quarter total approximately $12.4 million.
Tesla’s 52-week trading range extends from $293.55 to $498.83. The stock’s 50-day moving average sits at $409.15, while its 200-day average rests at $409.76 — both positioned above current trading levels.
The post Tesla (TSLA) Stock Slides 12% YTD as Analyst Warns on Robotaxi Timeline appeared first on Blockonomi.

Key Takeaways
RBC Capital moved AVAV from Outperform to Sector Perform, reducing price target from $210 to $180
Shares traded near $157 in premarket hours Thursday, marking a 35%+ decline year-to-date
Company unveiled FY2030 revenue objectives of $3.5B–$4.0B, signaling 15–20% organic yearly expansion
Challenges include terminated Space Force SCAR contract valued over $1 billion and $89.4M accounting correction
Piper Sandler maintained Overweight stance while reducing target from $248 to $235
Shares of AeroVironment (AVAV) declined during Thursday’s premarket session, dropping to approximately $157 following RBC Capital’s decision to downgrade the unmanned systems manufacturer from Outperform to Sector Perform while lowering its price objective from $210 to $180.
The rating adjustment followed AeroVironment‘s Investor Day presentation on July 8, during which executives outlined fiscal 2027 revenue projections of $2.125B to $2.225B — representing approximately 10% annual growth — alongside extended fiscal 2030 ambitions of $3.5B to $4.0B.
RBC’s Ken Herbert recognized that AeroVironment’s market positioning remains solid, yet expressed concern that the anticipated revenue acceleration between 2028 and 2030, when considered alongside stagnant defense budgets and capacity expansion challenges, would likely prompt investor hesitation until greater clarity emerges.
“The implied 2028 to 2030 acceleration in revenue growth, and material step up in margins, against a backdrop of greater investments, flat top-line defense spending, and potential capacity expansion risk, will keep investors on the sidelines until visibility on the upside is better,” Herbert stated in his note.
The company projects 15% to 20% yearly revenue increases through decade’s end, with EBITDA margin expansion reaching 18%–20%, compared to roughly 14% expected for fiscal 2026.
Wall Street Maintains Generally Bullish Outlook
Notwithstanding the downgrade, AVAV continues enjoying favorable coverage across Wall Street. Approximately 84% of analysts maintain Buy ratings — significantly exceeding the 55%–60% Buy-rating benchmark typical of S&P 500 constituents. Consensus price targets average around $237.
Piper Sandler preserved its Overweight designation following the Investor Day presentation but adjusted its target downward to $235 from $248, contributing to a pattern of moderated near-term forecasts after several weeks of share price recovery.
Contract Termination and Financial Restatement Create Persistent Headwinds
AVAV’s more substantial challenges originated earlier this year. Shares had traded above $392 before the U.S. Space Force issued a stop-work directive concerning the SCAR (Satellite Communication Augmentation Resource) initiative — a contract exceeding $1 billion for the company’s BADGER phased-array antenna technology. The Space Force determined that commercially available alternatives could fulfill requirements more economically.
This contract termination, coupled with a June financial restatement disclosing an $89.4 million understatement of operating losses, triggered several securities class action complaints. Both issues continue casting shadows over the stock’s performance.
AVAV declined 35% year-to-date entering Thursday trading. The stock’s 52-week peak stands at $417.86, while it momentarily reached a 52-week trough of $135.20.
Broader market conditions provided minimal support Thursday, with the S&P 500 declining 0.3% and the Dow dropping 1.1%, although the Nasdaq edged slightly higher at +0.2%.
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主なハイライト
アドバンスト・マイクロ・デバイス（AMD）は、ウィリアム・ブレアによる新たな「マケット・パフォーム」評価を受けて、プレマーケット時間に1.9%上昇した。予測では、売上高が2026年の$52Bから2028年には$104B超にまで拡大する可能性が示されている。
ゴールドマン・サックスのアナリスト、ジェームズ・シュナイダーはAMDの目標株価を$640に引き上げ、週を通じて強気の勢いを維持した。
株価は木曜に$517.41で寄り付き、52週レンジは$137.59から$584.73の範囲で推移した。
第1四半期の結果は予想を上回り、コンセンサスの$1.29に対してEPSは$1.37だった。一方、売上高は$10.25Bで、年間37.8%の増加となった。

TLDR
Raymond James launched coverage with a Buy recommendation and $800 price objective, suggesting potential upside of approximately 440% from SPCX’s latest closing price of $148.26
Citi’s optimistic scenario projects $900 per share, which would place SpaceX’s valuation near $12 trillion
Analyst consensus price target stands at approximately $240, representing 65% potential upside; the stock currently holds 22 Buy recommendations, 4 Hold ratings, and 1 Sell rating
The company isn’t projected to achieve profitability until 2027, with capital expenditures expected to maintain negative cash flow for additional years
SPCX reached a record high of $225.64 days after going public but has since retreated, currently hovering around $150, approximately 9.82% above its initial offering price of $135
SpaceX (SPCX) stock was changing hands at $150.20 during Thursday’s premarket session, climbing roughly 1.3%, amid a surge of analyst commentary that emerged following the stock’s inclusion in the Nasdaq-100 index on July 7.
Raymond James analyst Brian Gesuale launched coverage on Tuesday with a Buy recommendation and a 12-month price objective of $800. This target suggests potential appreciation of approximately 440% from SPCX’s most recent closing price of $148.26. Gesuale’s investment thesis revolves around SpaceX’s positioning as an infrastructure powerhouse, with Starship and Starlink serving as primary growth catalysts.
Gesuale’s initiation wasn’t isolated. The cascade of fresh analyst ratings elevated the overall consensus to Strong Buy — comprising 22 Buy recommendations, 4 Hold positions, and a single Sell rating. The consensus price objective now registers at $245.96, according to TipRanks data compiled as of July 9.
However, the most striking projections emerge from bullish scenario analyses.
Citi analyst John Godyn maintains a base price target of $200 but envisions a bull-case scenario of $900 per share — a valuation that would position SpaceX around $12 trillion, surpassing Microsoft, Amazon, and Tesla. Godyn characterizes the $200 target as “a milestone along the path to $900-plus,” dependent on demonstrating critical engineering achievements at commercial scale.
Morgan Stanley’s Adam Jonas establishes a base target of $300, with a bullish scenario reaching $600. His optimistic projection assumes Starship achieves operational status this year, the Terafab semiconductor manufacturing facility commences production, and orbital AI satellites launch successfully. Conversely, his pessimistic scenario lands at $75 — predicated on Starship not reaching full operational capability until 2029.
Cantor Fitzgerald’s Colin Canfield employs a more conventional valuation methodology. His bull-case analysis applies 2030 earnings per share of approximately $11 with a 100x earnings multiple, discounted to present value yielding roughly $740 per share. His bear-case scenario utilizes $8 EPS with a 20x multiple, producing approximately $100.
Starship Is the Common Thread
Across nearly every analyst report, one element remains consistent: Starship. The massive, fully reusable launch vehicle remains in development phases but could revolutionize orbital access costs — reducing expenses from thousands of dollars per kilogram to mere tens or hundreds. Reduced launch economics would enable dramatic expansion for Starlink, which already serves over 10 million subscribers while maintaining profit margins exceeding 60%.
The divergence between bullish and bearish scenarios is remarkably wide, even by growth equity standards. This discrepancy underscores the substantial uncertainty still embedded in SPCX’s valuation.
Fundamentals Still a Work in Progress
SpaceX isn’t anticipated to achieve profitability until 2027, per FactSet estimates. Beyond that milestone, substantial capital investments indicate the company will probably maintain negative cash flow for multiple additional years — necessitating continued reliance on debt and equity financing to support its expansion plans.
SPCX touched an all-time peak of $225.64 merely four days following its initial public offering, before experiencing a significant pullback. The equity has traded near $150 throughout much of the recent week, roughly consistent with its June 12 debut price, though it remains approximately 9.82% above its IPO price of $135.
The post SpaceX (SPCX) Stock Soars on Wall Street Optimism: Can It Reach $900? appeared first on Blockonomi.

Key Takeaways
The Magnificent 7 now trade at only a 10% premium to the S&P 500, marking the narrowest valuation gap in more than ten years
Six out of seven Mag 7 companies have lagged the S&P 500 in 2026, with Alphabet being the sole outperformer at 14.5%
AI infrastructure spending among Big Tech firms is set to surpass $700 billion in 2026, representing a 70% year-over-year increase
Morgan Stanley believes these tech giants are mispriced and advocates for strategic purchases, pointing to their 45% earnings growth edge
Chip stocks have rallied approximately 85% this year as market participants shift capital from the Magnificent 7
The elite group of tech stocks known as the Magnificent 7 is currently trading at valuation levels not seen in over a decade relative to the broader S&P 500, based on recent research from Morgan Stanley.
This prestigious cohort consists of Nvidia, Microsoft, Alphabet, Amazon, Meta Platforms, Apple, and Tesla. Historically, these technology powerhouses have commanded substantial valuation premiums compared to other market participants. That premium has now contracted dramatically to a mere 10%, a sharp decline from the 30%-plus levels that persisted throughout most of the early 2020s.
Year-to-date, the S&P 500 has climbed approximately 9%. Meanwhile, the Roundhill Mag 7 ETF, which provides exposure to this exclusive group, has slipped marginally into negative territory during the same timeframe.
Alphabet stands as the outlier in this scenario. The search giant has advanced 14.5% in 2026, outpacing the broader market’s 8.8% advance.
Massive AI Infrastructure Investment Weighs on Sentiment
The primary catalyst behind the valuation compression is the extraordinary capital outflow. Big Tech companies are channeling enormous resources into artificial intelligence infrastructure, encompassing data center construction and procurement of cutting-edge GPUs.
AI-related capital expenditures across the Magnificent 7 are projected to eclipse $700 billion this year, marking a substantial 70% increase. This aggressive spending spree is significantly impacting free cash flow generation, which analysts anticipate will decline considerably from 2024’s high-water mark.
Deutsche Bank strategist Jim Reid highlighted “growing apprehension regarding the capex spend by the largest hyperscalers.” Market participants remain skeptical about when tangible returns on these massive investments will materialize, creating downward pressure on valuations.
Additional anxiety surrounds the possibility of a Federal Reserve interest rate increase later in 2026. Elevated borrowing costs would make financing AI initiatives more expensive, compounding existing concerns.
Wall Street Firm Identifies Compelling Entry Point
Notwithstanding the recent underperformance, Morgan Stanley maintains an optimistic outlook. Lisa Shalett, who leads the firm’s global investment office, argues that the hyperscale technology companies appear significantly undervalued at current prices.
The investment bank emphasizes the group’s impressive 45% annual earnings expansion advantage versus the remainder of the S&P 500 as justification for accumulation.
Morgan Stanley isn’t advocating for passive index-based exposure. Rather, the firm recommends selective positioning in specific companies during the latter half of 2026, prioritizing businesses with adaptable AI architectures integrated with market-leading cloud computing platforms.
Alphabet, Amazon, and Microsoft are identified as prime candidates to capitalize on the industry’s pivot from computationally intensive AI models toward more streamlined hybrid methodologies.
Nvidia currently trades at approximately 18 times forward earnings estimates, substantially below its long-term historical average of 36 times.
The semiconductor industry has experienced a remarkable 85% surge year-to-date as investors pivoted toward hardware manufacturers. Morgan Stanley recommends reversing this positioning and reallocating capital back into the Magnificent 7.
Reid observed that despite robust global enthusiasm for artificial intelligence, “leadership in the market has shifted away from the Mag 7 for now.” Nevertheless, Morgan Stanley and several other prominent Wall Street institutions maintain constructive outlooks on the group over the coming twelve months.
The post Morgan Stanley: Magnificent 7 Tech Giants Hit Decade-Low Valuations Amid AI Investment Surge appeared first on Blockonomi.

Quick Overview
ANET shares jumped 8.76% to reach $181.05, with trading volume of 11.91 million shares compared to the typical 8.72 million average
Company co-founder Andreas Bechtolsheim offloaded 240,000 shares worth approximately $39 million on July 2 through a pre-arranged 10b5-1 trading plan
The company unveiled its 7060XE7 Series, a 1.6-terabit AI switching solution, now deployed at Meta, Microsoft, and Oracle
First quarter fiscal 2026 results exceeded projections: earnings per share of $0.87 versus consensus of $0.81; sales of $2.71B against expectations of $2.61B
Multiple Wall Street firms including BofA, Morgan Stanley, KeyBanc, TD Cowen, and Piper Sandler have elevated their price objectives recently
Shares of Arista Networks (ANET) climbed 8.76% during Tuesday’s trading session, settling at $181.05 — approaching its 52-week peak of $181.27. The equity momentarily reached an intraday all-time high of $181.27, with trading activity of 11.91 million shares exceeding the typical daily volume of 8.72 million.
The stock has appreciated more than 70% across the trailing twelve-month period.
The rally comes on the heels of multiple positive catalysts, beginning with impressive first quarter fiscal 2026 financial results. The company delivered earnings per share of $0.87, surpassing the Street’s $0.81 projection. Top-line revenue reached $2.71 billion, exceeding the anticipated $2.61 billion.
This outperformance prompted Wall Street analysts to reconsider their valuations — and many obliged.
Wall Street Firms Boost Price Projections
TD Cowen elevated its price objective to $200 from $170 while reaffirming its Buy recommendation, highlighting bullishness surrounding hyperscaler infrastructure investments. Piper Sandler increased its target to $181 from $175, sustaining an Overweight stance. BofA Securities, Morgan Stanley, and KeyBanc similarly raised their objectives throughout June, with Morgan Stanley and KeyBanc maintaining Overweight designations while BofA preserved its Buy rating.
Wolfe Research retained its Outperform assessment with a $175 price target, referencing positive momentum in the data center switching landscape.
The equity was added to the Russell Top 50 Index in late June, enhancing its presence among large-capitalization indices.
AI Networking Platform Fuels Bullish Sentiment
Early in June, Arista introduced the 7060XE7 Series — a 1.6-terabit switching solution designed specifically for rack-scale artificial intelligence infrastructure. The platform offers both air-cooled and liquid-cooled variants.
Production deployments have been verified with Meta, Microsoft, and Oracle.
This product introduction has served as a significant catalyst for analyst enthusiasm, as requirements for high-throughput AI data center networking infrastructure continue expanding.
Regarding insider transactions, co-founder Andreas Bechtolsheim divested 240,000 shares on July 2 for roughly $39 million. The transaction was conducted pursuant to a Rule 10b5-1 trading arrangement, which he established on February 20.
Bechtolsheim maintains ownership of over 182.1 million ANET shares directly and via a family trust.
The company commands a market capitalization of $227.98 billion. Its Relative Strength Index stands at 60.19 — elevated though not yet entering overbought levels. The equity’s 52-week trough was $102.68.
Benzinga’s Edge evaluations assigned ANET a Quality Score of 90.29 and a Growth Score of 92.90, reflecting favorable price momentum across all timeframes.
Piper Sandler’s Overweight designation included commentary expressing caution regarding potential peak expansion — acknowledging that not all analysts maintain uniformly bullish perspectives on future performance.
The post Arista Networks (ANET) Stock Surges to Record High Following Earnings Beat and AI Switch Launch appeared first on Blockonomi.

Key Highlights
Salesforce (CRM) received downgrades from both Bernstein and KeyBanc to Sector Weight on the same day
Concerns center around disappointing customer reception and limited traction for Agentforce AI platform
Shares declined over 4% during premarket hours Thursday, hovering near $159
CIO survey data reveals growing number of IT leaders planning to reduce Salesforce spending priorities
KeyBanc’s Jackson Ader warns that enterprise data infrastructure remains insufficiently prepared for AI deployment
Thursday proved to be a challenging session for Salesforce investors. Shares plummeted more than 4% before the opening bell following synchronized rating cuts from Bernstein and KeyBanc Capital Markets, with both investment firms highlighting identical concerns: the Agentforce platform is failing to meet expectations.
Early trading saw CRM hovering around $159, representing a significant retreat from Wednesday’s closing price of $166.58.
Jackson Ader, an analyst at KeyBanc, reduced his rating on CRM from Overweight to Sector Weight, stating he discovered “minimal to no supporting factors, aside from valuation metrics, that would justify maintaining a positive outlook.” This represents a surprisingly frank acknowledgment that bullish arguments have essentially evaporated.
The timing of the downgrade carries particular weight. Salesforce shares have already tumbled 37% year-to-date, leading Ader to concede his call arrives “better late than never.”
The fundamental challenge extends beyond simple valuation metrics — the AI platform itself is problematic. Following attendance at various partner and customer conferences, Ader concluded that enterprise data infrastructure remains insufficiently organized to support meaningful artificial intelligence implementations.
Agentforce, positioned as Salesforce’s premier AI solution, faces pointed scrutiny. Ader characterized the platform as falling short of requirements, noting that implementation partners are only beginning to transition proof-of-concept demonstrations into legitimate sales opportunities.
CIO Research Points to Budget Headwinds
A recent survey of chief information officers conducted by Bernstein reinforced these troubling signals. The research revealed that more IT executives anticipate reducing Salesforce’s priority within their technology budgets over the coming year compared to those planning increased investment. This represents a significant directional indicator that demands attention.
Bernstein specifically highlighted that Salesforce emerged as “a standout for negative reasons” within the survey results — hardly the recognition a company seeks while promoting its AI transformation narrative.
The investment firm also expressed difficulty identifying concrete evidence within financial statements that net-new average order values are expanding at rates exceeding overall AOV growth — a metric that management has emphasized in its communications with investors.
Stock Discount Less Compelling Than Surface Data Suggests
The valuation argument proves more complex upon closer examination. While Salesforce undeniably trades at historically depressed multiples, with its enterprise-value to free-cash-flow ratio sitting approximately 80% below post-2020 highs, this doesn’t necessarily represent the bargain it appears.
Ader challenged the “undervalued stock” thesis, noting that when compared against software industry peers, CRM trades at roughly median levels — and actually commands premium valuations on a growth-adjusted basis. The apparent discount therefore lacks the depth suggested by headline figures.
Bernstein continues to recognize Salesforce as a deeply embedded platform benefiting from strong customer retention. This fundamental assessment remains unchanged. However, expectations regarding any Agentforce-driven growth acceleration have shifted dramatically.
The firm indicated that evidence supporting sustained business acceleration appears “more distant than previously anticipated, assuming it materializes at all.” This marks a considerable departure from Bernstein’s earlier defense of Salesforce against pessimistic “Death of SaaS” predictions.
Ader offered a straightforward assessment: “Achieving meaningful upside requires either larger scale or extended duration of acceleration, and securing that appears increasingly challenging heading into 2026.”
Salesforce declined to provide commentary when contacted by media outlets prior to publication.
The post Salesforce (CRM) Stock Tumbles 4% Following Dual Analyst Downgrades Over AI Concerns appeared first on Blockonomi.

Key Takeaways
Strategy’s preferred stock offerings have declined approximately 10% in value recently, pushing yields to between 10% and 16%.
The cryptocurrency market downturn has seen Bitcoin retreat roughly 30% year-to-date to $62,000, while MSTR stock has tumbled nearly 40% to $94.
The company maintains $2.6 billion in cash reserves — sufficient to fund approximately 1.5 years of its $1.8 billion yearly preferred dividend obligations.
Strategy generates no revenue from its massive 843,000 Bitcoin portfolio, raising questions about long-term dividend viability.
The firm aggressively targeted individual investors through platforms like Robinhood, Morgan Stanley’s retail network, and digital advertising campaigns.
Strategy’s ambitious preferred stock strategy is facing significant headwinds. The four Nasdaq-traded preferred securities — known as Stretch (STRC), Stride (STRD), Strike (STRK), and Strife (STRF) — have shed roughly 10% of their value over the last 30 days, resulting in current yields spanning 10% to 16%.
These returns stand in stark contrast to the 6% yields typically offered by traditional bank-issued preferred securities from institutions such as JPMorgan Chase and Bank of America.
MSTR’s common shares have experienced an even steeper decline, falling nearly 40% year-to-date to approximately $94. Bitcoin, the fundamental asset underlying Strategy’s entire business model, has decreased about 30% in 2025, currently trading at $62,000 per coin.
The company’s flagship Stretch preferred (STRC) was originally marketed as a Bitcoin-backed alternative to Treasury bills — a floating-rate instrument expected to maintain stability near its $100 par value. Strategy successfully raised over $10 billion through STRC issuance alone. The security now changes hands around $86, delivering a current yield approaching 14%.
Strategy launched its preferred stock program in early 2025, channeling the capital raised into additional Bitcoin acquisitions. The firm currently holds approximately 843,000 coins — representing about 4% of Bitcoin’s total supply — valued at over $50 billion based on recent market prices.
The Revenue Problem
The fundamental challenge is straightforward: Strategy produces no income whatsoever from its substantial Bitcoin reserves. The digital assets generate no dividends, yield no interest, and produce no operational revenue while held on the corporate balance sheet.
This reality makes the company’s $1.8 billion annual preferred dividend commitment particularly challenging. Strategy has responded by accumulating cash reserves totaling approximately $2.6 billion — providing coverage for roughly 18 months of dividend payments.
The company has publicly committed to maintaining cash reserves equivalent to at least one full year of preferred dividend and interest obligations moving forward. It has generated this liquidity through strategic common stock offerings and limited Bitcoin position reductions.
Technically, preferred stock represents equity rather than debt. This classification means Strategy could suspend dividend payments without triggering a formal default. However, company leadership appears determined to maintain uninterrupted payments to preserve access to preferred stock markets and protect the interests of retail shareholders who participated in the offerings.
Targeting Main Street Investors
Strategy employed an unusually aggressive retail-focused marketing campaign for its preferred securities. The company promoted the offerings through Robinhood’s platform, partnered with Morgan Stanley to access its extensive retail brokerage network, and purchased advertising space on X and other social media channels — including a creative campaign inspired by the HBO series Industry.
The company also specifically courted financial advisors, family offices, and registered investment advisors as distribution channels.
This retail-concentrated shareholder base means numerous individual investors now hold securities trading at losses, with market pricing increasingly resembling high-yield junk bonds rather than traditional preferred stock.
Despite preferred stock challenges, Wall Street maintains an optimistic outlook on MSTR common shares, with 12 analysts rating it a Buy and one recommending Hold among the 13 analysts monitored by TipRanks. The consensus 12-month price target stands at $287.58.
All four preferred securities continue trading on the Nasdaq exchange, currently offering yields between 10% and 16% as of early July 2026.
The post Strategy (MSTR) Stock: Are Preferred Shares Offering 16% Yields a Smart Investment? appeared first on Blockonomi.

Key Takeaways
Memory chip revenues reached an unprecedented $74.6 billion in July, climbing 31.7% from June.
NAND flash sales surged 40.7% to an all-time high of $25.8 billion, fueled by artificial intelligence storage requirements.
UBS has increased its DRAM pricing outlook, projecting gains of 32% and 18% across the upcoming two quarters.
While UBS and Bernstein foresee immediate price appreciation, they diverge on the duration of the upward trend.
Leading beneficiaries include Micron, Samsung, SK Hynix, and SanDisk.
The worldwide memory chip industry achieved record-breaking sales of $74.6 billion during July. This represents a substantial 31.7% increase from June’s figures, based on fresh analysis from UBS.
The figure also exceeded the decade-long seasonal average by 2.8 percentage points. Research teams at both UBS and Bernstein are now projecting significant memory chip price appreciation extending through the remainder of 2026.
The primary corporations positioned to capture these gains are Micron Technology, Samsung Electronics, and SK Hynix. These three manufacturers collectively account for the majority of global DRAM and NAND memory chip production. SanDisk stands to benefit as well, given its concentrated focus on NAND flash technology.
Record-Breaking Performance Across DRAM and NAND Segments
DRAM memory revenues reached an all-time high of $48.0 billion in July. This represented a 27.7% monthly increase, although it fell approximately 8 percentage points short of the long-term seasonal norm.
NAND memory demonstrated a contrasting trajectory. Revenues recovered to a record $25.8 billion, representing a 40.7% month-over-month surge. This reading exceeded historical averages by nearly 17 percentage points, predominantly driven by artificial intelligence data storage requirements.
UBS analysts noted that the memory sector is gaining momentum as AI-driven demand expands. The investment bank also highlighted ongoing negotiations surrounding long-term agreement contracts (LTAs) as a contributing factor to the current upward momentum.
Consequently, UBS has revised its pricing projections upward. The firm currently anticipates DRAM contract prices will increase 32% during the third quarter of 2026, followed by an 18% rise in the fourth quarter.
NAND pricing is projected to advance 30% and subsequently 12% during these same periods. UBS maintains the view that DRAM supply constraints will persist through at least mid-2028.
This assessment stems from AI chip requirements. UBS projects DRAM bit demand will expand 36.2% in 2027, while supply capacity grows just 19.3%.
High-bandwidth memory, essential for AI processor applications, sits at the center of this demand equation. UBS anticipates high-bandwidth memory requirements will surge 90% in 2026, followed by an additional 77% expansion in 2027.
Drawing from these market dynamics, UBS projects aggregate memory industry revenues will reach $992 billion in 2026. That total is forecast to climb to $1.76 trillion in 2027.
Bernstein Projects More Limited Duration for Price Rally
Bernstein concurs that near-term pricing will strengthen for both DRAM and NAND products. However, the firm anticipates the velocity of these price gains will decelerate during the latter half of 2026.
Bernstein indicated that consumer device demand will ultimately soften. The firm observed that accelerated consumer purchasing and consistent server demand have helped mitigate downside risks thus far, but characterized both as transient dynamics.
Both research firms acknowledge that long-term supply agreements will serve a pivotal function moving forward. Bernstein described these contracts as a cushion that could moderate any subsequent price adjustment.
The most significant disagreement between the two firms centers on the longevity of the current market strength. UBS projects constrained supply conditions will extend through mid-2028, whereas Bernstein expects prices to crest and begin moderating sometime following mid-2027.
UBS also identified a potential risk to its own projections. The firm cited customer budget constraints and the trajectory of AI-related capital expenditures as the most substantial threats to the ongoing rally.
Market participants will be monitoring forthcoming contract pricing negotiations for directional signals. Executive commentary from leading chip manufacturers regarding supply agreement terms is anticipated in the months ahead.
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Key Takeaways
AstraZeneca shares plummeted up to 9% following disappointing results from Wainua’s late-stage heart disease study
The drug failed to demonstrate a statistically significant reduction in cardiovascular deaths and heart complications in ATTR-CM patients during the 140-week study period
A majority of participants (57%) were receiving stabilizer medications at enrollment, potentially obscuring Wainua’s therapeutic effects
Financial analysts pointed to flawed trial methodology rather than drug inefficacy, though questioned management’s clinical development expertise
Partner company Ionis Pharmaceuticals declined 13.8% in premarket activity; competitor Alnylam jumped 17%
Shares of AstraZeneca experienced their sharpest single-session decline since March 2020 on Thursday, falling as much as 9.1% in London markets after the pharmaceutical giant announced that Wainua, its experimental cardiac therapy, missed its primary endpoint in a pivotal late-stage clinical study.
In U.S. premarket trading, NYSE-listed AZN shares declined 8.4%, erasing approximately £23.3 billion ($31.21 billion) from the company’s total market capitalization at the session’s lowest point.
The investigational treatment was evaluated in 1,432 participants diagnosed with transthyretin-mediated amyloid cardiomyopathy (ATTR-CM), an uncommon cardiac disorder characterized by abnormal protein accumulation in heart tissue, which impairs the organ’s pumping capacity. Global prevalence estimates suggest between 300,000 and 500,000 individuals suffer from this condition.
According to Thursday morning’s press release from AstraZeneca, Wainua failed to demonstrate statistically meaningful improvements in cardiovascular mortality and recurrent cardiac events compared to placebo treatment over the 140-week observation period.
Questions Arise Over Study Methodology
The outcome surprised market analysts, with most not anticipating a primary endpoint failure given encouraging data from Amvuttra, a competing therapy developed by Alnylam Pharmaceuticals.
The issue appears rooted in the trial’s fundamental structure. At study initiation, 57% of enrolled patients were already receiving stabilizer medications, with an additional 24% commencing stabilizer therapy during the trial period. Because stabilizers operate through mechanisms distinct from Wainua—which functions as a gene silencing agent—the concurrent use of both treatment modalities complicated efforts to isolate and quantify Wainua’s incremental therapeutic contribution.
Among the patient subset not receiving stabilizer therapy at baseline, Wainua demonstrated a “nominally significant” clinical benefit. However, this subgroup finding proved insufficient to satisfy the study’s predetermined primary efficacy criterion.
Analysts at Jefferies noted that AstraZeneca “is meant to be able to have exceptionally good trial design ability,” suggesting the design-related failure could damage leadership credibility. The investment bank has revised its risk-adjusted revenue projections downward by $2.5 billion for the medication.
BofA analyst Sachin Jain characterized the outcome as “a surprise,” observing that market participants had dismissed the possibility of a trial miss given the existing positive competitor evidence.
Future Outlook for Wainua Development
Barclays analysts indicated they don’t anticipate AstraZeneca will finance a new monotherapy study for Wainua, reasoning that such an approach would be unlikely to secure regulatory authorization within the current decade and would trail substantially behind Alnylam’s already commercialized treatment.
Citi analysts suggested that pursuing supplemental regulatory approvals for Wainua in ATTR-CM now appears improbable, particularly given Amvuttra’s established market position for treating the condition.
Wainua’s current regulatory authorization remains valid. The medication has secured approval across more than 20 nations for treating polyneuropathy—a nerve disorder—and contributed $212 million in product sales for AstraZeneca during 2025.
Jefferies maintained that the trial setback doesn’t jeopardize AstraZeneca’s ambitious $80 billion annual revenue objective by 2030, which relies on launching up to 20 novel therapeutics. The analysts suggested the stock may remain under pressure until data emerges from the AVANZAR oncology study.
U.S.-traded development partner Ionis Pharmaceuticals dropped 13.8% in premarket sessions. Alnylam shares surged 17% while BridgeBio advanced between 11% and 16%.
AstraZeneca stated the findings “support greater scientific understanding of treatment approaches” for patients with ATTR-CM.
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