Bank of America Sends Strong Verdict to Meta Stock Investors: The Market Got It Wrong

 Bank of America Sends Strong Verdict to Meta Stock Investors: The Market Got It Wrong

**After a 10% post-earnings plunge, Bank of America is urging investors to look past the noise, arguing the underlying business is stronger than the selloff suggests .**

---

## What Happened to Meta Stock

For five consecutive quarters, Meta Platforms delivered a rare feat: beating earnings expectations while ramping up one of the most aggressive AI spending programs in corporate history . The market rewarded both. The stock climbed. The narrative held together.

That streak ended on July 29 .

Meta reported second-quarter revenue of **$60.8 billion**, up 28% year-over-year and slightly above Wall Street expectations . Advertising revenue was **$59.4 billion** . User engagement remained healthy: Instagram time spent was up 10% globally, and Facebook video time spent grew 9% .

The problem was costs. Total expenses jumped 55% to **$42 billion** . Inside that number were a **$2.4 billion legal charge** tied to youth safety proceedings and a **$1.2 billion severance charge** from Meta's May workforce reduction .

EPS came in at **$6.18**, well below the $7.20 consensus . Net income fell 14% to **$15.85 billion** . Free cash flow crashed 91% to just **$784 million** .

The stock dropped roughly 10% in after-hours trading and landed at $542 .

---

## The Reason for the Selloff

The market reaction reflected several concerns rather than one isolated result . Investors were spooked by:

- **The earnings miss** – The EPS shortfall snapped Meta's five-quarter beat streak .

- **The free cash flow collapse** – Free cash flow fell to its lowest level since Q3 2022 .

- **The spending commitment** – Meta narrowed its 2026 capex guidance to **$130 billion to $145 billion**, raising the floor from $125 billion . The company also disclosed nearly **$700 billion** in contractual and future lease commitments tied largely to AI infrastructure .

- **The Q3 guidance** – The midpoint of $62.5 billion was slightly below consensus estimates .

But Bank of America says the market is reading this completely wrong .

---

## What Bank of America Says

On the morning of July 30, Bank of America's Justin Post released a note arguing that the after-hours sell-off reflected concern about Meta's investment direction, rather than any deterioration in the underlying business .

"AI capacity strengthening core ad business and provides strong optionality; compelling core valuation at 13x 2027 EPS," Post wrote. "Buy." 

**His thesis rests on two things the market is currently underpricing:**

**1. Meta's AI investments are already producing measurable results in the core advertising business .**

- AI-powered ranking and recommendation improvements drove an **8.3% increase in ad clicks** and a **15.7% uplift in Facebook conversions** in Q2 .

- Advantage+ reached an annualized revenue run rate of more than **$75 billion** in the quarter .

- Ad impressions grew 14% and average ad prices rose 12% .

**2. Meta's capacity assets—the data centers, GPUs, and custom silicon it is building—are more valuable than the market is reflecting .**

"*We're getting a lot of offers for compute at a significant premium over what we paid for it,*" Zuckerberg said on the earnings call .

As Meta's data centers ramp over the next 12 months, Post believes the company has significant optionality to monetize that capacity externally through enterprise partnerships, API licensing, and infrastructure deals .

---

## Why BofA Cut the Price Target to $810

Bank of America slightly lowered its price target from **$825 to $810** . The reduction was driven by a 1% cut to 2027 GAAP EPS estimates, from $35 to $34.73 .

Post raised revenue estimates for both 2026 and 2027, but increased expense forecasts to reflect the one-time charges, higher stock-based compensation, and lower other income from higher interest costs .

The valuation multiple stayed at **24 times 2027 earnings** .

At the after-hours price of $542, Post's note puts the stock at:

- **16 times 2027 earnings** on a total company basis

- **13 times** when stripping out Reality Labs losses 

For context, the S&P 500 trades at around 20 times 2027 earnings . Historically, Meta has traded at a three-point premium to the index. Right now, it's trading at a meaningful discount .

---

## 6 AI Catalysts Bank of America Says Could Move META Stock

Post's note outlines a specific catalyst path that he thinks can shift investor sentiment on Meta's AI spending :

| Catalyst | Expected Timing |

|----------|----------------|

| **Meta Connect Conference** | Sept. 23, 2026  |

| **Frontier AI model launch** ("Watermelon") | Around or after Connect  |

| **Proprietary chip launch** (MTIA processor) | TBD  |

| **Personal AI assistant launch** | TBD  |

| **Business AI revenue platform** | TBD  |

| **Enterprise API licensing deals** | TBD  |

Any one of these could change the narrative around whether Meta's spending will generate returns .

BofA also estimates that if Meta monetizes half of its projected 19 gigawatts of computing capacity at market rates, it could generate between **$100 billion and $150 billion in additional revenue** on top of the existing advertising business .

---

## Is the Market Overreacting?

The $810 price target from the July 30 closing price of $585.61 implies roughly **38% upside** .

Post acknowledges that meaningful AI monetization outside advertising may take time to materialize. But his argument is that even if the AI revenue story takes longer than expected, Meta retains the flexibility to moderate its infrastructure buildout, which would drive a significant uptick in free cash flow .

At the current valuation, he sees more upside than downside, regardless of which scenario plays out .

Morningstar echoed a similar view, maintaining an $850 fair value estimate and saying the market's reaction was too severe . Analysts estimate underlying operating margins were closer to 37% after adjusting for one-time charges .

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## The Bottom Line

Meta's Q2 earnings were a classic "good news, bad news" story. The advertising business is thriving, with 28% revenue growth, 14% ad impression growth, and AI driving measurable improvements in ad performance . But the cost of building the AI future is swallowing almost every dollar the company generates.

Bank of America's message is clear: the market is punishing Meta for the wrong reasons. The legal and severance charges are one-time items. The advertising business remains strong. And the infrastructure Meta is building has significant optionality beyond its core ad business .

For investors willing to look past the near-term noise, BofA sees a rare opportunity to buy a high-growth advertising business at a discount to the broader market—with a free option on a potential AI cloud business that could be worth hundreds of billions.

---

## Frequently Asked Questions

### Q: Why did Meta stock fall after Q2 earnings?

A: Meta's EPS of $6.18 missed the $7.20 consensus, costs jumped 55% to $42 billion due to one-time legal and severance charges, and free cash flow crashed 91% to just $784 million due to heavy AI infrastructure spending .

### Q: What is Bank of America's price target for Meta?

A: Bank of America lowered its price target from $825 to $810, implying roughly 38% upside from the July 30 closing price .

### Q: Does BofA still recommend buying Meta stock?

A: Yes. BofA reiterated its "Buy" rating, arguing the market is undervaluing Meta's AI investments and the optionality of its computing capacity .

### Q: What AI catalysts is BofA watching for Meta?

A: BofA is watching the Sept. 23 Connect Conference, a frontier AI model launch ("Watermelon"), a proprietary chip launch, personal AI assistant, business AI revenue platform, and enterprise API licensing deals .

### Q: Could Meta's AI spending pay off?

A: BofA believes it will. Meta is already seeing AI-driven improvements in ad performance, and CEO Zuckerberg has said the company is receiving offers for compute at a premium. BofA estimates Meta could generate $100-150 billion in additional revenue by monetizing half its computing capacity .

-Read more--

## Disclaimer

**IMPORTANT:** This article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. The information contained herein is based on publicly available sources and reflects the author's understanding as of the publication date. Market conditions, stock prices, and company performance are subject to rapid change. Past performance is not indicative of future results. You should consult with a qualified financial advisor before making any investment decisions. Analyst opinions and price targets are not guarantees of future performance.

Major Airline Cancels 81 Flights as Strike Looms, No Refunds

 Major Airline Cancels 81 Flights as Strike Looms, No Refunds

**WestJet has begun grounding planes and canceling flights as a midnight strike deadline approaches, leaving thousands of travelers scrambling during one of the busiest summer holiday weekends. The airline is offering free changes—but cash refunds are only available to select passengers.**

---

## The Strike Threat That's Grounding Planes

Canada's second-largest airline, WestJet, is staring down a potential strike by its 4,400 flight attendants that could disrupt travel for tens of thousands of passengers over the Canadian long weekend . The union representing the flight attendants issued a 72-hour strike notice that expires at 2:01 a.m. ET on Sunday, August 2 .

The core issue is unpaid work—specifically, compensation for pre-boarding and ground duties that flight attendants perform before the plane takes off . Union members voted 99% in favor of a strike mandate in mid-July, and negotiations have been intense but inconclusive .

## The 81-Flight Cancellation

As of Saturday morning, WestJet had canceled 81 flights from hubs like Calgary (YYC) and Vancouver (YVR) to destinations including Toronto, Montreal, Chicago, Las Vegas, and Honolulu . The airline is also grounding Boeing 737 planes as it shifts to a reduced schedule.

The company says the cancellations are necessary "to ensure the integrity of WestJet's network" and "minimize the risk of stranding guests and aircraft" . If a deal isn't reached by Sunday, hundreds more flights could be canceled during what is a peak travel weekend .

## The Refund Question: What You're Actually Entitled To

Here's where it gets tricky. WestJet is offering flexible change/cancel policies for flights through August 4—you can change your flight free of charge, even if your fare class wouldn't normally allow it .

But **cash refunds to the original method of payment are only available to passengers booked in higher fare classes** . Everyone else is limited to travel credits.

It's also important to understand Canadian airline regulations. Under Canada's Air Passenger Protection Regulations, a **labour disruption is considered a situation outside the airline's control**. That means you are **not entitled to cash compensation** for your inconvenience .

However, the airline is still required to:

- **Rebook you on the next available flight**, either on WestJet or an airline it has a commercial agreement with

- The rebooked flight must depart within 48 hours of your original departure time

- If the airline cannot rebook you within 48 hours, you can choose between a **full refund** or alternate travel arrangements 

WestJet has also stated that if a strike leads to cancellations, "impacted guests will be refunded or re-accommodated, as applicable" .

## The "No Refunds" Headline

The claim that WestJet is issuing "no refunds" comes from the airline's refusal to offer cash refunds across all fare classes during the pre-strike cancellation phase . For those in lower fare classes, WestJet has offered travel credits rather than refunds. This policy applies specifically to the 81 cancellations made *before* a strike officially begins.

If a strike actually occurs and your flight is canceled, the rules shift again, and refunds or rebooking may become mandatory under Canadian law .

## What You Should Do Now

1. **Check your flight status** before heading to the airport—WestJet has warned passengers to do so 

2. **If your flight is canceled**, contact WestJet to understand your options for rebooking or travel credit

3. **Keep receipts** for any expenses you incur

4. **Check your travel insurance** to see if it covers labor disruptions

5. **Review your fare class** before assuming you'll receive a cash refund

## Frequently Asked Questions

### Q: Can I get a refund for my canceled WestJet flight?

A: It depends on your fare class. Travelers in higher fare classes can get cash refunds; others are eligible for travel credits under the current pre-strike policy . If a strike occurs and your flight is canceled, Canadian law requires the airline to rebook you or offer a refund .

### Q: Will I get compensation for the inconvenience?

A: Under Canadian law, a labour disruption is considered outside the airline's control, so you are not entitled to cash compensation .

### Q: How many flights has WestJet canceled?

A: WestJet canceled 81 flights on Saturday, August 1, and is operating on a reduced schedule . More cancellations are expected if no deal is reached.

### Q: What is WestJet Encore and are those flights affected?

A: WestJet Encore (Q400 flights) and WestJet codeshare flights are **not** affected by the potential strike . Only mainline WestJet flights are impacted.

### Q: When is the strike deadline?

A: The 72-hour strike notice expires at 2:01 a.m. ET on Sunday, August 2 . If no deal is reached, flight attendants could walk off the job immediately.

### Q: What is the union demanding?

A: The union is seeking better compensation for unpaid work—specifically, pay for pre-boarding and ground duties that flight attendants perform before takeoff . The union also wants higher wage rates overall .

-Read more--

## Disclaimer

**IMPORTANT:** This article is for informational and educational purposes only and does not constitute financial, investment, legal, or professional advice. The information contained herein is based on publicly available sources and reflects the author's understanding as of the publication date. Flight policies, regulations, and labor negotiations are subject to rapid change. You should consult with the airline directly or a qualified professional for guidance on your specific situation.

"Wait for the Truth": Trump Is Now Selling Wall Street Sneak Peeks of His Market-Moving Posts

 "Wait for the Truth": Trump Is Now Selling Wall Street Sneak Peeks of His Market-Moving Posts

**The president's social media posts now come with a price tag. A new high-speed feed gives Wall Street traders a millisecond advantage—and raises urgent ethical questions about insider trading and presidential profiteering.**

---

## The President's Words, Now a Commodity

President Trump knows the world hangs on his every word. Now he wants you to pay for it . On August 1, 2026, Truth Social began offering a premium service called **Truth API** that gives Wall Street traders split-second early access to the president's market-moving posts .

It's not just a faster way to check social media—it's a direct feed that delivers posts to paying institutional clients in **milliseconds**, bypassing the slower internet connections and manual monitoring that regular users rely on . The service is designed for high-frequency traders who specialize in buying and selling within fractions of a second, exploiting tiny, fleeting differences in prices .

The company, which is publicly traded and majority-owned by Trump, charges **$100,000 per month** for the service . The revenue potential is significant: if just three firms sign up, it would **double** Trump Media's annual revenue .

As one industry observer put it, "Trump's posts constitute just a tiny fraction of what moves markets" . But the unique reality of a president whose social media pronouncements regularly rattle global markets means this service is unlike anything Wall Street has seen before.

---

## How the Truth API Works

The service is straightforward in concept but significant in practice :

| Feature | Detail |

|---------|--------|

| **Name** | Truth API |

| **Launch Date** | August 1, 2026 |

| **Target Customers** | Wall Street trading firms, hedge funds |

| **Delivery Speed** | Milliseconds |

| **Monthly Cost** | $100,000 |

| **Content** | Posts from "highest-ranking" Truth Social accounts (including the president) |

| **Availability** | 24/7 |

The company says the information is released to paying traders and the general public "at the same time," so there isn't technically an issue of fairness . But critics note that "when the posts are received, not when they are released, is what matters" .

"Somebody who buys the info and has a system built to process it will be able to act quicker than you and me," said Joe Saluzzi, co-founder of Themis Trading . "The loser is always the retail investor" .

---

## The Ethics Firestorm: "If This Was a CEO, This Would Be Jail Time"

The backlash has been immediate and fierce . Critics argue that the president of the United States is exploiting his public office for private gain, selling privileged access to information that shapes markets and moves trillions of dollars.

"If this was the CEO of a public company, this would be jail time," said Irene Aldridge, head of Able Alpha Trading . "We have a President of the United States who has the front seat to all the action, who makes all the decisions, and he's disclosing this ahead of time to a select group."

Kathleen Clark, a government ethics expert at Washington University School of Law, was even blunter: "He's selling expedited, privileged access to information about what he is doing as president. It's yet more brazen corruption, an improper exploitation of government power to enrich himself" .

The concerns are amplified by the president's recent pattern of market-moving posts :

- **Tariff threats** against Canada

- **Nuclear deal cancellations** with Saudi Arabia

- **Escalation of the Iran war**

- **Stock endorsements** of specific companies like Palantir and Intel

In April, moments after Trump praised Palantir Technologies, the stock briefly jumped the most it had in a year . Later that month, he posted "Congratulations on Intel doing such a great job," and the stock immediately jumped in after-hours trading .

"This is the pimping of specific companies—obviously Wall Street would like to know that before other people," said Dylan Hedler-Gaudette, a federal ethics rule expert at the Project on Government Oversight . "It's a real mess."

---

## Trump Media's Response: "Critics Just Aren't Capitalist Enough"

Trump Media & Technology Group has defended the service, arguing that it's simply a market-driven innovation .

The company issued a statement blasting critics for mischaracterizing the service "out of ideological opposition to free markets or a failure to grasp the distinction between public and nonpublic information—or, quite possibly, both" .

Kevin McGurn, the interim CEO of Trump Media, said the service will create a steady profit and that markets "already move on Truth Social posts" .

---

## Why Trump Media Needs the Cash

The service comes as Truth Social's parent company is bleeding money . The stock has plunged **75%** since Trump took office last year, and the company reports hundreds of millions in losses . Revenue last year was just **$3.7 million** .

The president breaks news on Truth Social so often that the White House press office will copy his posts into an email when responding to media inquiries . If his posts aren't available yet, journalists are sometimes told, "Wait for the Truth" .

If the losses keep mounting, some predict the president will push things further, using the platform even more for policy announcements. "That's absolutely going to happen," warns Craig Holman, a lobbyist for the good-government group Public Citizen . "Trump knows how to sell products."

---

## The Political Consequences

The move has already drawn scrutiny from Capitol Hill. Senator Elizabeth Warren (D-Mass.) issued a statement Friday specifically attacking the new service and promising investigations : "We will haul in those responsible for this open corruption to answer to the American people."

For now, the service is live. Wall Street's biggest traders are signing up—or staying silent. And the president of the United States is profiting from every word he posts.

---

## Frequently Asked Questions

### Q: What is Truth API?

Truth API is a premium service launched by Trump Media on August 1, 2026, that gives Wall Street traders high-speed access to posts from the president's Truth Social account in milliseconds .

### Q: How much does it cost?

The service costs **$100,000 per month** . If just three firms sign up, it would double Trump Media's annual revenue .

### Q: Is the president's posts included?

Yes. The service promises access to "the highest-ranking Truth Social accounts," which includes the president . The company has not indicated that Trump's posts are excluded.

### Q: Is this legal?

Experts disagree. While the company says the information is released to the public and traders at the same time, critics argue that the speed advantage gives paying customers an unfair edge . The question of whether this violates insider trading laws or ethics rules is likely to be litigated .

### Q: Who is buying the service?

It's unclear. Asked for comment, none of the half-dozen most well-known high-speed traders such as Citadel Securities and XTX Markets replied .

---Read more

## Disclaimer

This article is for informational and educational purposes only and does not constitute financial, investment, legal, or professional advice. The information contained herein is based on publicly available sources as of August 2, 2026. You should consult with a qualified financial advisor or legal professional before making any decisions based on this information.

Japan and U.S. Join Forces to Defend the Yen: First Joint Intervention in 15 Years

 Japan and U.S. Join Forces to Defend the Yen: First Joint Intervention in 15 Years

**In a rare and coordinated move, Tokyo and Washington have stepped into currency markets to prop up the beleaguered yen from its weakest levels since 1986, marking their first joint action of this kind in 15 years.**

---

### A Historic Response to a 40-Year Low

As the new trading week begins, Japanese Finance Minister Satsuki Katayama is set to announce a significant development: Japan and the United States have taken joint action to arrest the yen's slide to 40-year lows against the dollar. This announcement follows what market sources describe as rounds of yen-buying intervention by both countries, the first such coordinated effort since 2011.

The move comes after the yen plummeted to levels near 164 per dollar, its lowest in decades, driven by a stark interest rate differential between the two economies. The Federal Reserve's hawkish pivot has maintained the dollar's strength, while the Bank of Japan's continued accommodative stance has weighed heavily on the yen.

### The Scale of the Intervention

The joint effort appears to have been substantial. According to sources, the Japanese government bought yen for dollars in New York trading hours on Thursday, with Bank of Japan data suggesting a massive sale of as much as **$58.97 billion** to support the currency.

The intervention isn't over. One official confirmed the operation is still ongoing and that Katayama will stress both countries' determination to combat excessive yen declines. The announcement is expected to occur as early as Monday, August 3, 2026.

### Surprising Evidence of U.S. Involvement

Proof of Washington's direct involvement came in a remarkable form. A photograph from a Friday cabinet meeting showed Treasury Secretary Scott Bessent with a notepad listing a task to purchase between **$5 billion and $10 billion** worth of yen. This aligns with Bessent's recent public comments that the yen appeared "significantly undervalued".

Additionally, the U.S. Treasury informed several major banks on Friday that it might intervene in the yen market, instructing them to stand ready for future action. The Federal Reserve Bank of New York is also reported to have conducted a sale of euros to buy yen on behalf of the U.S. Treasury, confirming the unprecedented nature of the cooperation.

### What This Means for the Markets

This intervention is designed to change the momentum of the yen, which has been battered by a widening rate differential with the U.S.. While a stronger yen could weigh on Japanese exporters by reducing the domestic value of overseas earnings, it will also lower import costs and ease inflationary pressure from energy and raw materials.

Continued intervention may increase volatility in the USD/JPY currency pair and force investors holding large short-yen positions to unwind their trades, potentially triggering further market movements.

---

### Frequently Asked Questions

**Q: Why did Japan and the U.S. intervene in the currency market?**

A: The intervention was aimed at halting the yen's steep slide to 40-year lows against the dollar. A weak yen, while beneficial for exporters, increases import costs and contributes to inflation. Joint action signals a serious commitment to stabilizing the currency.

**Q: How much money was spent on the intervention?**

A: The Japanese government is estimated to have sold around **$59 billion** to buy yen in one round of intervention. The U.S. Treasury was also photographed with a note to purchase an additional $5-10 billion in yen.

**Q: Is this the first time Japan and the U.S. have intervened together?**

A: No, but it is the first time in 15 years. The last joint intervention was in 2011, following the Great East Japan Earthquake. This is also the first **joint yen-buying** action since 1998.

--Read more-

### Disclaimer

This article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. The information contained herein is based on publicly available sources and reflects the author's understanding as of the publication date. Currency markets are volatile, and intervention efforts may not have the intended effect. You should consult with a qualified financial advisor before making any investment decisions.

Why Aug. 4 Could Be a Big Day for the Stock Market

 Why Aug. 4 Could Be a Big Day for the Stock Market

**SpaceX is set to report its first quarterly earnings since its blockbuster IPO—and just days later, over $100 billion in locked-up insider shares could hit the market. Here's what to watch.**

## The Calm Before the Storm

If you're an investor in Elon Musk's newly public rocket and AI empire, you've probably been watching the calendar with a mix of anticipation and anxiety. Next Tuesday, Aug. 4, is the day SpaceX (NASDAQ: SPCX) reports its first quarterly earnings since its historic IPO in June .

But the real drama might not be what the company reports. It's what happens two days later.

On Aug. 6, roughly **20% of locked-up insider shares**—potentially worth more than $100 billion at current prices—will become eligible for sale . With SpaceX stock already down roughly 47% from its high of $225.64, the combination of earnings and unlocking could define the stock's trajectory for the rest of 2026 .

## What Wall Street Is Expecting

Analysts are projecting **second-quarter revenue of roughly $6.8 to $6.9 billion**, representing about 68% year-over-year growth . That would be a significant jump from the $4.69 billion reported in the first quarter, largely driven by the company's AI infrastructure deals .

SpaceX's first-quarter GAAP loss was $1.27 per share, though adjusted losses were significantly smaller . The company's aggressive capital spending—$10.1 billion in the first quarter alone, with $7.7 billion tied to AI infrastructure—will likely keep the company in the red for the foreseeable future . Morgan Stanley expects a smaller adjusted loss of roughly $0.35 per share .

## The Three Numbers That Matter

Here's what analysts and investors will be watching:

**1. Starlink Subscriber Growth**

Starlink is SpaceX's only consistently profitable business, and it's the cash cow funding the rest of Musk's ambitions. Revenue in this segment grew 50% year-over-year in 2025, and the company reported 10.3 million subscribers as of the first quarter . Airlines and telecom firms—including United, Southwest, and T-Mobile—continue to roll out Starlink services, and the company just launched the first batch of next-generation V3 satellites with ten times the bandwidth of the prior version . Analysts are expecting subscriber growth to continue accelerating .

**2. AI Infrastructure Revenue Growth**

This is the part of the business that could surprise investors—or disappoint them. SpaceX has been aggressively monetizing spare compute capacity from its data centers, signing blockbuster deals with Anthropic ($1.25 billion per month), Google ($920 million per month), and Reflection AI ($150 million per month) . Analysts expect AI revenue to jump from $818 million in Q1 to roughly $2.18 billion in Q2 . If these deals are already showing up in the numbers, it could validate the AI infrastructure thesis. If not, skepticism may grow.

**3. Starship Development Costs and Timeline**

The Starship program is the long-term driver of SpaceX's valuation—and its biggest cost center. With 90 Falcon 9 launches completed this year, SpaceX is already turning away launch requests beyond 2028 as it transitions to Starship . But the rocket isn't yet commercially operational. Investors will be listening for updates on Starship's development timeline, the impact of the successful July 24 test flight, and when the company expects to start generating revenue from its next-generation launch system .

## The Lock-Up Tsunami: Aug. 6 Could Be the Real Stress Test

Here's the mechanical reality that could overshadow everything else.

SpaceX's unusual lock-up schedule triggers the first wave of insider shares on **Aug. 6**, the second full trading day after the Q2 earnings release . Roughly 20% of early-release-eligible shares—about 9.1 billion shares worth potentially $100 billion at current prices—will become eligible for sale . An additional 7% of shares will unlock on each of five subsequent dates through late October, meaning the selling pressure could persist for months .

Elon Musk's own shares are excluded from these unlocks and won't be eligible for sale until at least June 2027 . But the early investors and employees who have held shares for years may have a strong incentive to take profits—especially with the stock now trading below its IPO price .

As one analyst put it: "This stream of sell orders could push the share price down. This is what typically happens after an IPO" .

## Should You Buy Before Earnings?

The analysts are split, but the cautious camp seems to have the stronger argument.

**The bull case:** The AI revenue ramp is real, Starlink growth is accelerating, and the long-term addressable market—$28.5 trillion across all three businesses, according to SpaceX management—is massive . Morgan Stanley maintains a $300 price target, arguing that the market is still underestimating the AI business .

**The bear case:** SpaceX still trades at roughly **84 times sales**, more than 13 times the Nasdaq-100's multiple . Even using Wall Street's 2027 revenue estimate of $72.3 billion, the forward P/S ratio is still about 23x—expensive by any measure . And with $100 billion in insider shares set to hit the market in the coming months, the supply-demand dynamic could overwhelm whatever positive news the earnings report delivers .

As one analyst put it: "This is very much a long-term story" . If you're considering buying, the smart money says to keep it on a watch list and see how the lock-up expiration unfolds before making a move .

## The Bottom Line

Aug. 4 is the day SpaceX steps onto the public stage as a reporting company for the first time. The financials matter—but the real drama is the unlock date on Aug. 6. If insiders decide to sell, the stock could face significant downward pressure regardless of what the company reports. The long-term story is compelling, but the short-term mechanics are a wild card.

-Read more--

## Disclaimer

**IMPORTANT:** This article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. The information contained herein is based on publicly available sources and reflects the author's understanding as of the publication date. Market conditions, stock prices, and company performance are subject to rapid change. Past performance is not indicative of future results. You should consult with a qualified financial advisor before making any investment decisions.

Raising Cane's Celebrates 30 Years with National Expansion

 Raising Cane's Celebrates 30 Years with National Expansion

**The chicken finger chain's August 2026 expansion features seven new restaurants entering two new markets, plus four remodeled locations reopening across the U.S.**

---

## A Month of Milestones

August marks 30 years of Raising Cane's Chicken Fingers, and the company is celebrating the milestone with a significant wave of expansion. The chain will open seven new restaurants and reopen four remodeled locations across the country.

The expansion is part of the brand's aggressive growth strategy. The Louisiana-founded chain, which surpassed KFC in annual U.S. sales to claim the third spot behind Chick-fil-A and Popeyes, is on track to reach its long-term goal of 1,600 restaurants nationwide. Since 2018, Raising Cane's has grown from 400 restaurants and $1.18 billion in sales to become the 16th-largest restaurant chain in the United States.

## Where Raising Cane's Is Opening in August

The August openings will bring the chain to two new markets: Rocky Mount, North Carolina, and Statesboro, Georgia.

### New Restaurant Openings

| Date | Location | Address |

|------|----------|---------|

| Aug. 3 | Novi, Michigan | 26245 Novi Road |

| Aug. 3 | Rocky Mount, North Carolina | 1010 N. Wesleyan Blvd. |

| Aug. 10 | Thousand Oaks, California | 400 N. Moorpark Road |

| Aug. 17 | Fontana, California | 16940 Slover Ave. |

| Aug. 17 | Linden, New Jersey | 801 W. Edgar Road |

| Aug. 24 | Tuscaloosa, Alabama | 1241 McFarland Blvd. E. |

| Aug. 24 | Statesboro, Georgia | 24087 US-80 |

### Remodeled Locations Reopening

| Date | Location | Address |

|------|----------|---------|

| Aug. 12 | College Station, Texas | 1045 Texas Ave. |

| Aug. 17 | Lexington, Kentucky | 2555 Nicholasville Road |

| Aug. 17 | Las Vegas, Nevada | 7550 S. Las Vegas Blvd. |

| Aug. 24 | Gahanna, Ohio | 1320 N. Hamilton Road |

---

## July's Expansion Roundup

Before the August wave, Raising Cane's had already been busy in July with five new openings and three remodeled locations. The July openings included first-ever locations in Johnson City, Tennessee; Jacksonville, North Carolina; and Albany, Georgia—marking the chain's debut in three new states.

### July New Openings

- Schererville, Indiana (opened July 6)

- Johnson City, Tennessee (opened July 7)

- Jacksonville, North Carolina (opened July 13)

- Los Angeles, California (opened July 13)

- Albany, Georgia (opened July 21)

### July Remodeled Reopenings

- Edmond, Oklahoma (reopened July 13)

- Fort Collins, Colorado (reopened July 18)

- Las Vegas, Nevada (reopened July 20)

---

## What This Means for Raising Cane's Fans

The expansion represents a broader strategy for Raising Cane's as it moves beyond its Southern roots into new markets. The company is also extending operating hours in late-night dining hotspots, including Dallas-Fort Worth, Houston, Miami, Orlando, New Orleans, Nashville, Phoenix, and Las Vegas.

"August is a meaningful month for Raising Cane's as we celebrate our 30th birthday and reflect on how far we've come since opening our first Restaurant in 1996," a company representative said in a statement. "This milestone gives us an opportunity to celebrate the incredible growth we've experienced over the past three decades while looking ahead to an even brighter future".

---

## Frequently Asked Questions

### Q: How many new Raising Cane's locations are opening in August 2026?

A: Raising Cane's is opening **seven new restaurants** in August 2026, including first-ever locations in Rocky Mount, North Carolina, and Statesboro, Georgia.

### Q: Which remodeled Raising Cane's locations are reopening?

A: Four remodeled locations are reopening in August: College Station, Texas; Lexington, Kentucky; Las Vegas, Nevada; and Gahanna, Ohio.

### Q: What states are getting new Raising Cane's restaurants in August?

A: The new August locations are in Michigan, North Carolina, California (two locations), New Jersey, Alabama, and Georgia.

### Q: Did Raising Cane's open any locations in July?

A: Yes. In July 2026, Raising Cane's opened five new restaurants and reopened three remodeled locations, including first-ever stores in Tennessee, North Carolina, and Georgia.

### Q: What is Raising Cane's expansion strategy?

A: Raising Cane's is expanding aggressively, with around 100 new locations in 2025 and roughly 100 more planned for 2026. The company aims to reach 1,600 restaurants nationwide and has set its sights on becoming a top 10 restaurant brand.

---Read more

## Disclaimer

This article is for informational purposes only. Restaurant opening dates, locations, and operational details are subject to change. Please verify information with official Raising Cane's sources before making any plans.

Tech Prodigy's $45 Billion AI Fund Collapses Days Before Lavish California Wedding

Tech Prodigy's $45 Billion AI Fund Collapses Days Before Lavish California Wedding

**"We let you down this month," the 25-year-old founder wrote to investors after a forced sale wiped out more than half his fund's value. The timing couldn't be worse: his AI power-couple wedding is this weekend in Carmel.**

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## The AI "Nostradamus" Meets Wall Street Reality

Leopold Aschenbrenner was supposed to be having the best week of his life . The 25-year-old former OpenAI researcher, dubbed the "Nostradamus of AI" for his prescient 2024 essay predicting the AI infrastructure boom, was set to marry Avital Balwit—chief of staff to Anthropic CEO Dario Amodei—in a lavish Carmel, California ceremony .

Instead, he spent the days before his wedding fighting to save his hedge fund .

Aschenbrenner's **Situational Awareness** fund, which had swelled to an estimated $45 billion at the start of July on a concentrated, highly leveraged bet on AI infrastructure names, imploded spectacularly in a matter of days . The fund was forced to sell the bulk of its public holdings to Ken Griffin's Citadel at a discount after margin calls from its prime brokers—Bank of America, Goldman Sachs, and JPMorgan—came due .

By Thursday, the fund's assets had plunged from $45 billion to roughly $10 billion .

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## The Numbers That Tell the Story: A $35 Billion Wipeout

The scale of the collapse is staggering:

| Metric | Value |

|--------|-------|

| **Peak AUM (July 2026)** | $45 billion  |

| **Post-Citadel Sale AUM** | $10 billion  |

| **July Performance** | -67%  |

| **YTD Performance (post-July)** | +80%  |

| **Leverage Used** | 3x to 4x  |

| **Fund Inception (2024)** | ~$225 million  |

| **Pre-Crash Returns** | +1,000%+ since inception  |

The fund's concentrated portfolio of AI infrastructure names—including SK Hynix, CoreWeave, Sandisk, and Nebius—each shed more than 35% of their value in July . At the same time, Aschenbrenner's bearish bets on software companies like Adobe went the wrong way, creating losses on both sides of a leveraged, concentrated book .

**"A lot of people saw this blow-up as a matter of not if, but when,"** said Jerry Diao, who runs a Wall Street coaching firm . **"Maybe his views on AI are correct in the long run, but in the public markets, you have to be prepared for the short-term."**

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## The Forced Sale to Citadel

As positions deteriorated through late July, banks began demanding more collateral . Aschenbrenner sold stock to meet the calls, only pushing prices down further—a dynamic he later compared to a bank run, with "vulnerability begetting more vulnerability" .

On Wednesday night, the fund was forced to act. Citadel, Millennium, and Jane Street—an existing Situational Awareness investor—all submitted competing bids for the fund's public equities book . Citadel won, buying the bulk of the portfolio at more than 10% below market value .

**The fund kept its best asset.** Situational Awareness did not sell its private portfolio, which includes a significant stake in Anthropic—a holding estimated at roughly $5 billion . That position now accounts for about half of the fund's remaining assets .

---

## The Backstory: From OpenAI to Hedge Fund Star

Aschenbrenner's journey to Wall Street was anything but conventional. He graduated as valedictorian from Columbia University at 19, worked for Sam Bankman-Fried's FTX Future Fund, and joined OpenAI in 2023 to work on AI safety .

In 2024, he was fired from OpenAI after reportedly raising internal security concerns and wrote a 165-page essay titled **"Situational Awareness: The Decade Ahead"** . The essay predicted rapid advances in artificial intelligence and warned that only a small circle of insiders truly grasped the implications .

The essay turned the 22-year-old into a celebrity. Within weeks, he raised $225 million from Silicon Valley heavyweights including Stripe co-founders Patrick and John Collison, former GitHub CEO Nat Friedman, and investor Daniel Gross .

His fund, named after the essay, placed concentrated and heavily leveraged bets on companies linked to memory chips, data centers, and other AI infrastructure . By the end of June, the fund had generated cumulative gains exceeding 1,000% .

**Then came July.**

---

## The Wedding That Almost Wasn't

The timing of the collapse carried an almost cinematic irony. Aschenbrenner's wedding to Balwit, described as an "AI power couple" by Fortune, was scheduled for this weekend in Carmel, California . The multi-day celebration was set to include a "colloquium of panels and breakouts," a ceremony at a Tuscan-style villa, and a honeymoon at a forest spa retreat .

Guests were reportedly asked not to bring gifts .

Instead, Aschenbrenner spent the week before his wedding negotiating with lenders, approaching Sequoia and Greenoaks about selling private stakes, and working past midnight with his backers as Citadel and Millennium competed for his portfolio .

In a Thursday letter to investors, Aschenbrenner wrote: **"We let you down this month. We came closer to permanent capital impairment than is acceptable to us."**

He took full responsibility for the events, vowed to remove all leverage from the fund, and offered one-on-one phone calls with investors next week—the same week he's supposedly on his honeymoon .

**"I take full responsibility for these events,"** he wrote .

---

## The Wall Street Lesson: Right About AI, Wrong About Leverage

The collapse of Situational Awareness is a case study in Wall Street's oldest lesson: **leverage magnifies losses as much as gains.**

Aschenbrenner was running three to four times leverage on his positions—borrowing three to four dollars for every dollar of investor capital . That kind of gearing turns an ordinary sector pullback into a solvency event .

The irony is that his AI thesis appears to have been correct. The stocks he was forced to sell rallied sharply the day after the liquidation, with Sandisk surging 26% . The market didn't care about his long-term views—it cared that he needed to sell right now.

As the adage goes: **"The market can stay irrational longer than you can stay solvent."**

**This is the crucial point:** Aschenbrenner's story isn't proof that the AI investment theme has failed. It's proof that even the strongest investment thesis can be undone by poor portfolio construction . If you believe AI infrastructure companies will create enormous value over the next decade, owning a diversified basket of quality businesses without excessive borrowing gives that thesis time to play out. Leveraging a concentrated portfolio may amplify gains during a bull market, but it also removes your ability to survive the inevitable correction .

The pattern is eerily familiar: Long-Term Capital Management in 1998, Amaranth in 2006, Archegos in 2021. Different markets, same trap .

---

## What Happens Next

Aschenbrenner's fund is not shutting down. It remains operating with roughly $10 billion in assets, mostly in private holdings—including the Anthropic stake . Aschenbrenner has vowed to run the public stock portfolio **without leverage** going forward .

**"These were very expensive scars,"** he wrote in his investor letter, **"but I am dedicated to ensuring they will be invaluable lessons for our organization."**

Whether this is a "bump in the road" or a genuine reputational blow will depend largely on where AI infrastructure stocks—and Anthropic's own valuation—sit a year from now .

As for the wedding? It proceeded as planned. Guests arrived in Carmel as the fund collapsed, and Aschenbrenner reportedly hosted the ceremony despite the turmoil .

**The markets may have won the week. But the groom—and his Anthropic stake—survived to fight another day.**

---

## Frequently Asked Questions

### Q: Who is Leopold Aschenbrenner?

A: A 25-year-old former OpenAI researcher who published a prescient 2024 essay predicting the AI infrastructure boom. He used the essay as an investment thesis to launch a hedge fund, Situational Awareness, which rapidly scaled to $45 billion.

### Q: What caused his fund to collapse?

A: The fund used 3x to 4x leverage on a concentrated portfolio of AI infrastructure stocks. When AI and chip stocks corrected 30%+ in July, the leverage magnified losses, triggering margin calls from banks. The fund was forced to sell its public holdings to Citadel at a discount.

### Q: How much did he lose?

A: The fund lost 67% in July, dropping from $45 billion to roughly $10 billion in assets. However, the fund remains up about 80% year-to-date after a spectacular run before the sell-off.

### Q: Was his AI thesis wrong?

A: No. The irony is that his thesis appears to have been correct—the stocks he was forced to sell rallied sharply the next day. The problem was leverage, not the investment thesis.

### Q: Is his wedding still happening?

A: Yes. The wedding to Avital Balwit, chief of staff to Anthropic CEO Dario Amodei, proceeded as planned in Carmel, California. Aschenbrenner reportedly hosted the ceremony despite the financial turmoil.

### Q: What's the lesson for retail investors?

A: **Leverage magnifies losses as much as gains.** A diversified, unleveraged position gives a winning idea time to survive inevitable corrections. The market rewards patience, not just intelligence.

--Read more-

## Disclaimer

**IMPORTANT:** This article is for informational and educational purposes only and does not constitute financial, investment, or trading advice. The information contained herein is based on publicly available sources and reflects the author's understanding as of the publication date. Market conditions, stock prices, and fund performance are subject to rapid change. Past performance is not indicative of future results. You should consult with a qualified financial advisor before making any investment decisions.