SoFi stock has rebounded in recent weeks, climbing from its year-to-date low of about $15 to around $19 today. Even so, the shares remain roughly 42% below their all-time high. CEO Anthony Noto has attributed much of the weakness to the broader pullback in fintech stocks. 

With the company’s earnings due later this month, the key question is whether SoFi can extend its recovery or resume its downtrend.

SoFi stock has underperformed the market despite strong growth

SoFi Technology has lagged the market this year, with its stock falling by nearly 30%, while the Nasdaq 100 has jumped by 18%. 

This retreat happened even as the company published strong results and launched new products in its goal to become the go-to app for financial services. It relaunched crypto trading, launched a new stablecoin (SoFiUSD), Coach, a new AI solution offering financial advise, and a new Home Equity Line of Credit (HELOC) solution.

SoFi’s finances have done well this year. Its last financial results showed that its net revenue jumped 41% in the first quarter to $1.1 billion, higher than what analysts were expecting. This growth happened as the number of members jumped 35%, while its products rose 39%. Its new members rose by a record 1.1 million in Q1 to 14.7 million.

Most importantly, the company’s growth is expected to continue in the foreseeable future. Its upcoming results later this month are expected to show that its revenue jumped 30% to $1.12 billion. These are solid numbers for a company in the financial services industry, and one that has not made any major acquisitions recently. 

The annual revenue is expected to jump to $4.68 billion this year followed by $5.78 billion next year. Also, its profits are expected to keep rising, with the earnings per share reaching 59 cents this year, followed by 81 cents next year.

READ MORE: Why Cathie Wood is doubling down on this $18 stock

CEO Noto believes the stock has dipped because of sector weakness

In a CNBC interview this week, CEO Anthony Noto argued that the ongoing SoFi weakness is primarily because of its sector. Indeed, most fintech stocks like PayPal, Shift4 Payments, and Coinbase have all dropped this year.

Another reason is that the company diluted its shareholders earlier this year, raising $1.58 billion by issuing 57.7 million new shares. In total, the company raised over $3.8 billion in six months.

Investors are also questioning SoFi’s business after Muddy Waters published a highly bearish report. It accused the company of inflating the fair value of its loan portfolio, underreporting its losses, and having hidden debt. SoFi denied those allegations. 

Finally, there have been concerns about its valuation, with its forward price-to-earnings ratio being 31, and its PEG ratio rising to 9.12. The company justifies its valuation by using the Rule of 40, which stands at 72%. It was the 18th consecutive quarter of having a score higher than 40%.

SoFi Technologies stock price analysis

SoFi stock chart | Source: TradingView

The daily chart shows that the SoFi stock has jumped from $15 to $18.72 today. It has already crossed the 50-day moving average, while the Relative Strength Index (RSI) has been in an uptrend after bottoming at 21 a few months ago. It stands at 60 today, and the uptrend is continuing. As such, this RSI suggests that it has more upside before it gets to overbought levels.

The risk, however, is that it has slowly formed a rising wedge pattern, which may lead to more downside. In this case, it may be ideal to wait for the stock to cross the upper side of the wedge for confirmation of the bullish breakout. A move above that level will point to more gains towards $25. 

The post SoFi stock is crawling back: will it surge ahead of Q2 earnings? appeared first on Invezz

US stock futures were mixed on Friday as investors paused after a chip-led rally and turned their attention to SK Hynix’s Nasdaq debut.

Dow futures edged higher, but S&P 500 and Nasdaq 100 futures slipped as memory-chip stocks pulled back in premarket trading.

The listing of South Korea’s SK Hynix is a major test of Wall Street’s appetite for AI infrastructure exposure after months of sharp gains and volatility in semiconductor shares.

Middle East tensions also kept investors cautious, with oil and inflation risks still feeding into the Federal Reserve rate debate.

5 things to know before Wall Street opens

1. Futures pause after a strong rally

Dow futures rose 109 points, or 0.21%, while S&P 500 futures were little changed. Nasdaq 100 futures lagged, slipping 0.38%.

The move followed a stronger Thursday session, when the main US indexes gained on renewed demand for chip and AI-linked stocks.

The S&P 500 and Nasdaq remain on track for weekly gains, but Friday’s early tone suggests traders are taking some profit before the next major catalyst.

2. SK Hynix debut tests AI appetite

SK Hynix priced its American depositary receipts at $149 each, raising about $26.5 billion.

The offering is expected to be the world’s second-largest share sale, behind SpaceX’s record listing last month.

AJ Bell analysts see the debut as slightly late in the cycle because memory shares have already pulled back from earlier highs.

Even so, strong demand for the deal suggests investors may view the recent memory-chip weakness as a pause rather than the end of the rally.

3. Memory stocks cool before the open

Semiconductor shares eased in premarket trading, led by memory names. Micron Technology fell 3.2% after a 4.5% gain in the previous session.

Western Digital dropped 2.8%, while Seagate Technology lost 2.7%.

The pullback reflects the market’s broader struggle with AI valuations.

Investors still believe data-centre spending will support chip demand, but they are becoming less willing to chase the sector without fresh earnings confirmation.

4. Middle East risk keeps inflation in focus

Geopolitical risk remains a drag after Iranian forces attacked US military infrastructure in Gulf states, following US strikes on Iran’s southern coastal and eastern provinces.

New York Fed President John Williams said he does not expect Middle East hostilities to cause a lasting rise in energy prices this year, but he avoided saying how he would vote at the July policy meeting.

Markets are still pricing at least one 25-basis-point rate increase by the end of 2026.

5. Earnings season starts to matter

Delta Air Lines reports before the bell, offering an early read on consumer demand and travel pricing. The broader earnings season gathers pace next week.

Analysts expect S&P 500 profits to rise more than 24% from a year earlier, with technology companies driving much of the growth.

That leaves the market with a high bar: AI needs to keep delivering, not just promising.

The post Wall Street futures trade mixed: 5 things to know before the market opens appeared first on Invezz

Circle shares surged in premarket trading on Friday after the stablecoin issuer announced it had received final regulatory approval from the US OCC to establish a national trust bank.

At the time of writing, Circle shares were up 13.33% in premarket trading.

The regulatory approval allows the company to act as custodian for its own reserves and hold crypto assets on behalf of institutional clients.

OCC approval marks a key milestone

Circle said the final approval enables it to establish Circle National Trust and places the trust bank under the direct oversight of the OCC, the primary federal regulator for lenders and national trust banks.

Commenting on the approval, Circle Chief Executive Officer Jeremy Allaire described the development as a significant step for the digital asset industry.

“OCC approval to establish Circle National Trust marks a defining step in bringing blockchain technology and digital assets into the core of the US financial system,” Allaire said in a statement.

According to the company, operating under a national trust charter will allow it to expand its role in safeguarding digital assets while maintaining direct federal regulatory oversight.

Charter expands custody capabilities

The national trust bank charter allows Circle to serve as custodian for its own reserves, which back its stablecoin operations.

It also permits the company to hold crypto assets on behalf of institutional clients.

The approval comes as digital asset companies continue to broaden their presence in traditional financial services.

As regulatory hurdles have eased over the past year, firms in the sector have increasingly pursued banking licenses, custody businesses, and payment services.

The move reflects a broader effort by crypto companies to integrate more closely with regulated financial infrastructure while expanding their service offerings.

USDC remains a major stablecoin

Circle is the issuer of USDC, a dollar-pegged stablecoin designed to maintain a fixed value through a 1:1 peg with the US dollar.

Stablecoins are widely used within the cryptocurrency market to transfer funds between crypto tokens while minimizing price volatility.

Their fixed-value design makes them a commonly used medium for transactions across digital asset platforms.

Stock gains despite year-to-date decline

Friday’s rally follows a challenging year for Circle’s stock.

Despite the sharp premarket gains, the company’s shares had fallen 20.5% so far this year through the previous market close, according to LSEG data.

The decline had left Circle with a market capitalization of approximately $15.7 billion before Friday’s trading session.

Investors appeared to welcome the OCC’s final approval, sending the stock sharply higher as the market reacted to the company’s expanded regulatory status and new custody capabilities.

The approval gives Circle the authority to operate its national trust bank under direct federal supervision while broadening its role in providing custody services for both its reserves and institutional crypto clients.

The post Circle stock climbs over 10% in premarket after securing final US trust bank approval appeared first on Invezz

London’s FTSE 100 edged higher on Friday, supported by strong gains in Vodafone and easyJet following major corporate developments.

However, renewed tensions in the Middle East continued to weigh on investor sentiment, limiting broader market gains.

The blue-chip FTSE 100 index rose 0.08% to 10,480.31 points by 1053 GMT.

Meanwhile, the mid-cap FTSE 250 gained 0.1%.

Despite the modest advances, both indexes remained on track to record weekly losses.

Vodafone jumps after a major stake sale agreement

Vodafone emerged as the top performer on the FTSE 100, with its shares rising 12.6%.

The gains came after UAE telecommunications group e& announced that it would sell its stake in the British telecom company to the family investment vehicle of French billionaire Xavier Niel.

The transaction was valued at nearly $6 billion.

The announcement boosted investor confidence and helped lift the broader benchmark index despite cautious market sentiment.

easyJet leads FTSE 250 higher on takeover approach

Shares of easyJet climbed 14.5%, making it the strongest performer on the FTSE 250.

The budget airline said it had agreed in principle to a £5.7 billion ($7.65 billion) takeover approach from Apollo Global.

The proposed deal lifted sentiment across the travel and leisure sector, which rose 1.6% and led sectoral gains during the session.

The takeover news added to the day’s corporate activity, providing support for UK equities even as geopolitical concerns remained in focus.

Mining stocks advance alongside the broader market

Industrial metal miners also posted gains during the session.

The sector rose 0.8%, with Atalaya Mining, Antofagasta, and Rio Tinto advancing between 1.4% and 1.8%.

The gains in mining stocks further contributed to the positive performance of the UK’s main equity indexes.

Middle East tensions cap broader market gains

Despite the rally in several major stocks, investor sentiment remained cautious.

Renewed tensions in the Middle East weighed on markets after Iranian forces attacked US military infrastructure in Gulf states.

The development further undermined a three-week-old ceasefire and increased uncertainty surrounding the direction of the conflict.

The geopolitical uncertainty prevented stronger gains across the broader market, keeping investors cautious despite positive corporate news.

Financial stocks under pressure

Investment banks and brokerages declined 0.8%, making them among the weakest-performing sectors during the session.

St. James’s Place was one of the biggest fallers on the FTSE 100, dropping 8.7%.

The decline followed a report that Sovereign Wealth, one of the money manager’s largest partner firms, was in discussions to join a Swedish wealth management group.

Hays rises after upbeat profit outlook

Recruitment company Hays gained 13.8% after issuing a positive earnings outlook.

The company said it expects its annual operating profit to come in at the top end of market expectations.

According to the company, the improved outlook was supported by ongoing cost-cutting measures and higher consultant productivity.

The update was well received by investors and helped lift the stock sharply during Friday’s trading session.

Political developments remain in focus

On the political front, Andy Burnham moved closer to becoming Britain’s next prime minister after securing overwhelming backing from Labour lawmakers.

The support places Burnham in a strong position to succeed Keir Starmer, adding a political dimension to a session otherwise dominated by corporate deal activity and geopolitical developments.

The post FTSE 100 edges higher as Vodafone, easyJet rally offsets Middle East concerns appeared first on Invezz

SK Hynix’s blockbuster US listing is already spawning a new wave of leveraged investment products, with several exchange-traded fund issuers preparing to launch products tied to the South Korean memory-chip maker’s American depositary receipts (ADRs), a move that analysts say could increase volatility in one of the world’s hottest AI stocks.

According to a Bloomberg report, ProShares, Leverage Shares, and Rex Shares are among the issuers planning leveraged and inverse exchange-traded products that will track SK Hynix’s newly listed ADRs.

At least six such products are expected to begin trading next week, according to information published on the issuers’ websites.

The launch comes after SK Hynix raised about $26.5 billion by pricing 177.9 million American depositary shares at $149 apiece, marking one of the largest US listings by a foreign company and underscoring investor appetite for companies benefiting from the artificial intelligence infrastructure boom.

Leveraged products arrive after a record debut

The introduction of leveraged products would allow investors to magnify their daily gains or losses from movements in SK Hynix shares.

Some products are designed to deliver twice the daily return of the underlying stock, while others aim to generate inverse returns for investors betting on declines.

The products mirror investment vehicles that have become hugely popular in South Korea and Hong Kong, where leveraged bets on SK Hynix have attracted billions of dollars in assets.

Bloomberg noted that one leveraged SK Hynix product issued by CSOP Asset Management in Hong Kong has grown into the world’s largest single-stock leveraged ETF, managing more than $16 billion before the recent correction in the company’s share price.

How leveraged products have played a role in the chip stock boom in S. Korea

Analysts say the rapid rise of leveraged single-stock products has already altered trading patterns in South Korea.

SK Hynix, Samsung Electronics, and leveraged products linked to the two companies now account for more than 70% of total trading value on South Korea’s $4.3 trillion equity market, contributing to sharp swings in the benchmark Kospi index.

“Some elements of retail activity appear to be increasingly momentum-driven, with growth in single-stock ETFs boosting trading volumes and volatility in mega-cap names,” said John Cho, Korea equities portfolio manager at JPMorgan Asset Management in the Bloomberg report.

“The emergence of leveraged ETFs is not viewed as a healthy sign, as it may be indicative of late-cycle retail behavior.”

South Korean investors have shown strong enthusiasm for leveraged semiconductor products this year.

According to the South China Morning Post, leveraged ETFs tracking SK Hynix and Samsung Electronics were the two most-purchased investment products by South Korean investors during the first five months of 2026, attracting cumulative investments of $311.8 million and $211.1 million, respectively, based on Korea Securities Depository data.

The country’s market for single-stock leveraged ETFs has expanded rapidly since launching in late May.

As of this week, the combined market capitalisation of 14 leveraged ETFs tracking Samsung Electronics and SK Hynix had reached 13.02 trillion won ($8.63 billion), while cumulative trading value exceeded 212 trillion won during their first month.

Why leveraged ETPs in the US could increase volatility

Market participants say the growing popularity of leveraged products could create fresh challenges as issuers rebalance their portfolios daily to maintain targeted returns.

The growing concentration of money in single-stock leveraged products has started influencing the price movements of the underlying shares themselves.

The launch of additional leveraged exchange-traded products (ETPs) in the US is expected to increase daily portfolio rebalancing activity, potentially adding to already elevated volatility.

Bloomberg Intelligence also noted that the sheer size of these products has made it harder for issuers to consistently deliver twice the daily returns of the underlying stock, resulting in tracking errors.

“US investors may encounter the same tracking challenges” seen in Hong Kong’s leveraged product tracking SK Hynix, said Rebecca Sin, ETF analyst at Bloomberg Intelligence.

“When demand significantly exceeds available inventory, ETP issuers can face difficulties sourcing shares and maintaining effective hedges, potentially leading to tracking errors versus the underlying stock.”

The Bank of Korea has also warned that leveraged single-stock ETFs could amplify volatility through mandatory daily rebalancing of spot and futures positions, increasing concentration risks in underlying stocks.

Those concerns have sparked criticism from some policymakers, with at least one opposition lawmaker reportedly calling for the products to be delisted.

With SK Hynix now firmly established on Wall Street following its record ADR offering, analysts expect the launch of leveraged US products to further increase global trading activity around one of the AI industry’s most closely watched semiconductor companies.

The post SK Hynix's record US listing sets stage for leveraged ETF boom: volatility ahead? appeared first on Invezz

Netflix Inc. shares NFLX edged higher ahead of Friday’s opening bell after a report said the streaming giant is exploring live TV channels and streaming bundles as it looks to boost subscriber engagement.

The stock rose in premarket trading after initially moving lower on the news. Netflix has lost more than 39% over the past 12 months as investors have grown concerned about slowing engagement, disappointing guidance and rising competition across the streaming industry.

Netflix explores live TV and streaming bundles

According to a Wall Street Journal report, Netflix executives have recently discussed adding live TV channels that would continuously stream certain programs or genre-based content.

The company has also explored bundling third-party streaming services, including NBCUniversal’s Peacock, into its platform, allowing users to subscribe through the Netflix app.

The discussions mark a potential strategic shift for the company, whose former co-founder Reed Hastings long emphasized simplicity and a streaming-first approach.

Netflix has also reportedly begun offering French broadcaster TF1’s programming to subscribers in France and is considering similar partnerships across Europe and Latin America.

The company is also evaluating future sports rights opportunities.

According to the report, executives are discussing bids for the 2030 and 2034 FIFA World Cup while continuing to avoid expensive long-term league rights.

Declining engagement remains a key concern

The strategic review comes as subscriber engagement has become a recurring topic among senior management.

The Wall Street Journal reported that executives identified weakening engagement during the company’s annual business review this spring, despite rising profits and industry-low customer defections.

Netflix’s share of US streaming time declined to 17% from 21% over the two years through March 2026, according to Nielsen.

Its share of total US TV viewership also fell to 7.8% in April, the lowest level since May 2025.

The company has faced increasing competition from Disney+, HBO Max, YouTube, Tubi and Roku Channel, while investors have also questioned its failed pursuit of Warner Bros. Discovery’s studio and streaming assets.

Netflix is expected to report earnings next week alongside its latest engagement report, which will provide updated viewership data for its programming.

Analysts watch churn and long-term growth

Citizens reiterated its Market Perform rating on Netflix, saying the company continues to benefit from the scale of its subscriber base and distribution network but faces growing questions over engagement.

Analyst Matthew Condon said rising churn could threaten Netflix’s competitive position.

“This is ultimately what is prompting Netflix to explore Live TV and subscription bundle partnerships,” Condon said.

He also warned that if engagement weakens further, Netflix’s competitive advantages could begin to diminish.

“The important thing for me is what is happening with ‘churn,’” said Uday Cheruvu, portfolio manager and analyst at Harding Loevner in the WSJ report.

“It may not be a concern yet, but it is something I am keeping my eye on.”

Netflix has also introduced lower-cost programming, including video podcasts, YouTube content and short-form videos from publishers such as BuzzFeed and Condé Nast, while continuing to expand its advertising business.

The company generated about $1.5 billion in advertising revenue last year and previously said it expects to double ad revenue in 2026.

Live programming could further strengthen that business because viewers cannot skip commercials during live broadcasts.

The post Netflix stock gains as live TV, streaming bundle plans come into focus appeared first on Invezz

Plug Power stock extended its sharp sell-off this week, falling to its lowest level since April 2. The shares have plunged 45% from their highest level this year and have slipped below the 200-day moving average, while short interest remains elevated despite the company’s ongoing turnaround efforts.

Rising short interest despite turnaround measures

Plug Power, a top player in the hydrogen energy industry, has been in a rollercoaster this year. It initially jumped to a multi-month high of $4.32 in May as investors cheered its turnaround efforts, and then erased most of those gains, and the situation is worsening. 

The ongoing sell-off has coincided with the rising short interest. Benzinga data shows that its short interest jumped to 27.4%, a sign that many investors still expect it to continue falling in the near future.

The company has made some major changes this year, with the management suggesting that it has a path towards profitability in the future. It has also made some customer wins in the past few months. For example, it secured a new 50 MW electrolyzer order from Australia, which is being developed by Orica, a top player in the mining and infrastructure solutions.

Before that, the company completed the commissioning of 5 MW electrolyzer system at Måde Power-to-X (PtX) facility in Esbjerg, Denmark. 

Plug Power’s financial statements have also demonstrated that its business was making progress. The results showed that its revenue jumped by 22% in the first quarter to $163 million, helped by its material handling and electrolyzer businesses. It attributed this growth to its relationship with Amazon and Walmart, which use its solutions in their warehouses.

Rising gross margins

At the same time, the company said that its gross margins improved to minus 13% from minus 55% in the same period last year, a 71% increase. It attributed the margin growth to its measures to improve service execution, sales growth, and fuel sourcing efficiencies.

Plug Power also noted that it had already deployed 320 MW of electrolyzer globally and that it had an $8 billion pipeline across sectors like industrial and energy. Also, its hydrogen fuel sales rose by 22%, helped by customer growth, higher prices, and reduced warrant charges. Its hydrogen fuel margin rose by 54%.

Wall Street analysts are optimistic about Plug Power, with the average estimate for this year’s annual revenue being $813 million, up by 14.5% YoY. Also, they expect the revenue to jump to $964 million next year.

Therefore, the stock is falling as investors focus on its balance sheet. It ended the quarter with $802 million in cash, with $223 million being unrestricted. The rest is in the form of restricted cash that will be released $50 million per quarter for the next few years. With its cash burn still continuing, chances are that it may raise cash again this year.

Plug Power stock price technical analysis

PLUG stock chart | Source: TradingView

The daily chart shows that the PLUG stock price has been in a strong downward trend in the past few weeks as the recent momentum stalled. It has dropped below the 50-day and 200-day Exponential Moving Averages (EMA).

The stock moved below the key support level of $2.66, its highest point in January this year. At the same time, the Relative Strength Index (RSI) has dropped and is approaching the oversold level of 30. 

Therefore the most likely scenario is that it continues falling as investors wait for more clarity about its business when it releases its earnings, possibly on August 10.

The post Plug Power stock sinks even as turnaround story builds, short interest hits 27.4% appeared first on Invezz

Chinese artificial intelligence company Knowledge Atlas Technology JSC, better known as Zhipu AI, is seeking to raise around $4 billion through a share placement in Hong Kong.

The share sale comes after its stock surged following its market debut earlier this year.

The fundraising comes as investor interest in Chinese AI companies remains strong and technology firms increasingly tap Hong Kong’s capital markets to finance research, hiring and expansion amid China’s push to narrow the artificial intelligence gap with the United States.

Zhipu launches $4 billion share placement

According to a term sheet seen by Reuters, Zhipu is offering 19.78 million new shares at HK$1,588 to HK$1,698 each. The offer represents a 7% to 13% discount to Wednesday’s closing price of HK$1,825.

The accelerated bookbuild, a rapid share sale typically targeted at institutional investors, would increase the company’s share capital by about 4.2%, according to the term sheet.

The deal follows another strong trading session for the stock. Zhipu shares climbed 13.4% on Wednesday, extending gains in one of Hong Kong’s hottest AI stocks.

The company’s shares have surged nearly 1,500% since its January listing in Hong Kong.

The company plans to use the proceeds for research and development, including hiring, computing capacity and technical services, as well as business expansion, strategic investments, mergers and acquisitions, working capital and general corporate purposes.

Bloomberg reported that the company intends to optimize its capital structure.

China International Capital Corp. is acting as the sole overall coordinator for the offering.

AI investment boom fuels fundraising

Chinese technology companies have increasingly turned to Hong Kong’s equity markets to fund AI development as competition with US technology companies intensifies.

This week alone, several technology firms advanced Hong Kong fundraising plans.

Nexchip Semiconductor priced an initial public offering expected to raise about HK$6.98 billion ($890 million).

Separately, Shanghai Iluvatar CoreX Semiconductor Co. is seeking to raise about $850 million through a Hong Kong share sale, while Shanghai Biren Technology Co. recently raised about $900 million through a share placement.

Investor appetite for Chinese AI companies remains robust, although valuation concerns have made buyers more selective.

“Raising $4 billion gives Zhipu significant firepower to compete, but it also increases pressure on the company to demonstrate that heavy AI investment can translate into sustainable commercial returns,” said Glenn Yin, research director at brokerage ACCM in the Reuters report.

Regulatory scrutiny and AI expansion

Zhipu is one of China’s best-known AI model developers and is viewed by investors as a fast-rising Chinese challenger to US companies such as OpenAI, supported by strong demand for large language models.

The fundraising comes as Chinese authorities consider tighter oversight of advanced domestic AI technology.

Reuters reported that officials recently met with leading technology companies, including Zhipu, to discuss potentially restricting overseas access to China’s most advanced AI models.

Earlier this year, Zhipu raised HK$4.35 billion in its Hong Kong initial public offering.

The company also said last month that it plans to raise 15 billion yuan through a proposed listing on Shanghai’s STAR Market.

The company recently launched its GLM-5.2 AI model and is making the technology free and open for developers to build upon, aiming to expand adoption of its platform globally.

The latest fundraising also comes as China’s AI sector continues to evolve rapidly.

Reuters reported that AI startup MiniMax is developing a large language model with 2.7 trillion parameters, while news that DeepSeek is developing its own AI chip weighed on sentiment toward US semiconductor stocks earlier this week.

The post Zhipu seeks $4B in Hong Kong share sale after AI stock rally appeared first on Invezz

SpaceX shares SPCX are hovering near their opening price now, erasing all of the gains made after the company’s blockbuster stock market debut.

The stock fell as investors look past the boost from its inclusion in the Nasdaq-100 and instead focus on lofty valuations, broader market weakness, and concerns over elevated expectations.

The stock touched an intraday low of $149 on Wednesday shortly after the opening bell before recovering to trade around $150.72 by mid-morning.

Even with the rebound, shares remained close to their debut price of $150 and about 50% below the post-listing peak of $226 reached earlier.

They are still higher than the stock’s IPO price of $135.

SpaceX’s addition to the Nasdaq-100 was expected to generate fresh buying demand as exchange-traded funds and index funds tracking the benchmark adjusted their portfolios to include the stock.

Instead, the shares fell more than 6% on Tuesday.

To be sure, the weakness on Wednesday also came as growing concerns over heavy AI spending, rising US Treasury yields, elevated oil prices and escalating geopolitical tensions in the Middle East weighed on the broader technology sector as well.

Several semiconductor companies, including Micron Technology and Advanced Micro Devices, also posted sharp declines during Wednesday’s session.

“There’s nervousness about expectations being too high,” said Mark Hackett, chief market strategist for Nationwide, in a Reuters report.

“I expect that to continue until we get some earnings out.”

Some market watchers also argued that the decline was not unusual following the initial excitement surrounding a major IPO.

After an early rush of buying, investors often reassess whether a company’s valuation is justified by its financial performance and long-term prospects.

However, the simultaneous decline in both the stock price and trading volume suggests investors may be becoming more selective after the initial enthusiasm.

Wall Street remains overwhelmingly bullish

Despite the recent weakness, SpaceX continues to enjoy broad support from Wall Street.

Ahead of the company’s inclusion in the Nasdaq-100, nearly every major investment bank initiated coverage with bullish recommendations.

Eighteen of the nineteen firms covering the company assigned Buy ratings, with most price targets well above $200.

JPMorgan Chase began coverage with an Overweight rating and a $225 price target.

“SpaceX’s ambitions — and potential impact on humanity — are bigger than any company’s we’ve ever seen,” analysts wrote.

“While SpaceX has already reached a $2T+ market cap post its IPO, we believe significant upside potential remains as the company quite literally builds out the next frontier.”

Morgan Stanley was even more optimistic, assigning an Overweight rating and a $300 target price.

“SpaceX combines near-monopoly launch economics, the world’s largest LEO satellite network, and a fast-scaling AI infrastructure business,” analysts wrote.

“We see the company as one of the few platforms that can link real estate in orbit, global connectivity, and compute capacity into one infrastructure stack.”

Goldman Sachs also initiated coverage with a Buy rating and a $205 target.

“We see the company as well positioned to scale its differentiated advantages across space (launch & reusability), connectivity (broadband & mobile satellite constellation) and AI (compute, X, etc.) — with each of these markets having the potential to become multiple trillion-dollar opportunities over a 5+ year time horizon,” the brokerage said.

Other firms including Bernstein, RBC Capital Markets, Macquarie and UBS also issued bullish recommendations, with price targets comfortably above current trading levels.

One firm breaks from the consensus

The lone exception came from MoffettNathanson.

Analyst Julie Zhu assigned a Neutral rating and a 12-month target price of $131, making it the only major brokerage with a target below the stock’s recent trading price.

While the firm questioned the company’s valuation, its report stopped short of taking an outright bearish stance.

Among its concerns were what it described as an overly ambitious estimate of SpaceX’s addressable market, optimistic assumptions surrounding

Starlink’s satellite-to-phone business and doubts over Elon Musk’s plans to deploy massive computing infrastructure into space.

However, the brokerage also acknowledged several competitive strengths.

It noted that SpaceX effectively enjoys a monopoly in commercial launch services, with Blue Origin still years behind in terms of execution.

The report also described the launch business as the “flywheel that makes SpaceX work,” highlighting the company’s cost advantage in placing satellites into orbit and supporting the economics of Starlink.

Is SpaceX a buy at current levels?

The sharp pullback has investors wondering if it is a good level to buy the stock at.

David Jagielski of The Motley Fool argued that investors should remain cautious despite the company’s ambitious vision.

“This is, after all, an unprofitable company, and while it has grand visions for travel to Mars and putting data centers into space, those are highly ambitious objectives that may take many years to become reality, assuming the company can come through on them at all,” he wrote.

“SpaceX is the only stock that has a $2 trillion valuation or more, and that doesn’t have a highly profitable and successful business. That math on its valuation just doesn’t work, and investors who buy without taking that into consideration could incur mammoth losses. The stock’s decline may just be getting started,” he added.

Research firm Zacks echoed similar concerns, saying much of the company’s long-term growth story already appeared to be reflected in its valuation.

“Even after the recent pullback, investors are still paying a steep price for future growth that will take years to materialize,” the firm said.

Zacks said existing shareholders could continue holding the stock through near-term volatility, noting that Wall Street’s average price target still implies roughly 35% upside from current levels.

However, it advised prospective investors to remain patient.

“However, new investors may be better served by waiting for a more attractive entry point. While SpaceX’s long-term prospects remain attractive, the current valuation still offers a limited margin of safety, leaving little room for execution missteps or broader market weakness,” the firm said.

The post SpaceX stock is back to its opening price of $150: is it a buy now? appeared first on Invezz

Walmart Inc. (WMT) stock gained trading on Wednesday, as the stock looked to snap a three-week consecutive decline.

Analysts argued that the retailer’s latest grocery price cuts are financially manageable despite intensifying competition across the sector.

The company announced broad price reductions on grocery and seasonal products after President Donald Trump revealed the initiative on social media ahead of Walmart’s official announcement.

While the discounts have raised concerns about a potential grocery price war, analysts at Bank of America and Mizuho said the move fits within Walmart’s existing financial guidance and should not materially pressure margins.

Analysts say price cuts fit within Walmart’s financial outlook

Bank of America analyst Christopher Nardone said Walmart’s latest discounts are being funded through spending already included in the company’s guidance issued earlier this year, together with tariff-related refunds that have recently begun flowing back to the retailer.

According to Nardone, these financial resources allow Walmart to lower prices without changing its previously announced earnings outlook.

He added that the move reinforces Walmart’s willingness to compete aggressively in grocery, where pricing remains one of the most important drivers of consumer purchasing decisions.

Mizuho also maintained its Outperform rating on Walmart and reiterated its $137 price target, implying roughly 24% upside from the stock’s previous close.

Analyst David Bellinger noted that the retailer has multiple financial tailwinds helping offset the discounts, including more than $2 billion in expected tariff refunds and lower diesel prices, which have reduced transportation costs compared with earlier forecasts.

Grocery competition expected to intensify

Although analysts broadly supported Walmart’s strategy, they also warned that competition across the grocery industry is likely to increase during the second half of the year.

“Grocery will get even more competitive in the second half,” writes Wolfe Research’s Spencer Hanus. “With Kroger, Albertsons, Costco, and Dollar Tree (more visible $1 price points) all being very vocal about price investments, this announcement will heighten concerns about a price war.”

Hanus noted that Walmart’s price rollbacks had already increased about 20% during the first quarter and are expected to accelerate in coming quarters.

He also argued that Walmart’s pricing advantage remains difficult for competitors to match.

For every 1% pricing gap rivals attempt to close, Hanus estimates they would need to spend as much as $1.5 billion, making it difficult for most retailers to fully match Walmart’s scale.

Instead, competitors are expected to focus price reductions on staple products such as milk and eggs to improve consumers’ perception of value.

Inflation pressures continue shaping consumer behavior

The latest discounts come as consumers continue dealing with elevated living costs. Inflation stood at 4.2% in May, well above the Federal Reserve’s 2% target, while interest rates have remained unchanged.

“Above all, deflationary pricing seems very much needed for the consumer,” writes David Bellinger of Mizuho Securities.

Despite the recent pullback in Walmart shares, some market observers remain constructive on the company’s longer-term outlook.

CNBC’s Mad Money host Jim Cramer said the stock’s 17.5% decline from its May record high represents an attractive buying opportunity, arguing that several of the company’s key challenges are beginning to ease.

The post Walmart stock gains after price cuts as analysts back grocery strategy appeared first on Invezz