Palantir Shares Surge As It Bucks Investors' AI Fears

 Palantir Shares Surge As It Bucks Investors' AI Fears

**The company's "otherworldly" quarter—93% revenue growth, a 149% surge in U.S. commercial business, and a $3.1 billion boost to CEO Alex Karp's net worth—proved that enterprise AI can deliver real returns. Meanwhile, the market is watching for a potential Hormuz deal that could send oil prices lower, McDonald's named a new U.S. president after mixed results, and a Trump-linked Bitcoin venture reached a settlement.**

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## Palantir's "Otherworldly" Quarter Rewrites the AI Narrative

Palantir Technologies delivered a quarter that Wall Street called "otherworldly," and the stock surged nearly 30% in response . The company reported revenue of $1.9 billion, a 93% year-over-year increase, and earnings per share of $0.41—far surpassing estimates of $0.34 .

The real story was U.S. commercial revenue, which jumped 149% to $764 million . Government revenue rose 90% to $809 million . The company's results "further weaken the bear case around rising AI competition," Citi analysts wrote, noting that demand for data privacy among AI firms sets Palantir apart from competitors .

CEO Alex Karp's net worth rose $3.1 billion to $15.3 billion, moving him up 67 spots on Forbes' billionaire list . The stock is now down less than 2% for the year, erasing most of a monthslong decline .

## Hormuz Deal Progress Could Send Oil Lower

A deal to reopen the Strait of Hormuz appears increasingly possible, with officials from Washington, Tehran, and regional mediators signaling progress . U.S. Treasury Secretary Scott Bessent said an agreement could come "today or tomorrow" . President Trump described the discussions as "very good" while warning that Tehran would be "hit very hard" if the strait is not reopened soon .

Iran has denied direct U.S. negotiations, saying talks are with Oman over managing the strait . The emerging framework would allow ships to enter the Persian Gulf through an Iranian-controlled route and exit through a route controlled by Oman . Any deal would likely be linked to lifting the U.S. naval blockade on Iran's ports .

A fifth of the world's traded oil and gas transited the waterway before the war. Reopening it could send oil prices lower, ease inflationary pressures, and reduce the likelihood of aggressive Federal Reserve rate hikes.

## McDonald's Posts Mixed Results, Names New U.S. President

McDonald's reported mixed second-quarter results, beating earnings estimates but missing revenue expectations . U.S. same-store sales rose just 0.8%, a slowdown from 2.5% growth a year earlier, as traffic declined . "We don't have a strategy problem," CEO Chris Kempczinski said. "We simply didn't execute at the level we needed to in the second quarter" .

The company named Skye Anderson as president of McDonald's USA, effective Tuesday . Anderson, a 26-year veteran who most recently served as chief operating officer for McDonald's USA, succeeds Joe Erlinger . The company also pushed its 50,000-restaurant target from the end of 2027 to 2028, citing pressure on consumers and cumulative inflation in development costs .

## Trump-Linked Bitcoin Venture Reaches $2.5 Million Settlement

American Bitcoin, the Trump-linked cryptocurrency mining company, disclosed a $2.5 million settlement with the Justice Department over allegations it improperly obtained a pandemic relief loan . The company inherited the dispute when it merged with Gryphon Digital Mining, which had received the Paycheck Protection Program loan while operating as a software provider for the cannabis industry .

The SBA later determined that the cannabis industry software provider was ineligible for the PPP, which is reserved for small businesses in other sectors . The settlement exceeds the original $2.2 million loan, suggesting additional costs were added to the resolution .

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## Frequently Asked Questions

### Q: Why did Palantir stock surge nearly 30%?

Palantir reported a 93% year-over-year revenue increase to $1.9 billion, with U.S. commercial revenue jumping 149% to $764 million. The results beat analyst estimates and "further weaken the bear case around rising AI competition," according to Citi analysts .

### Q: What is the status of the Hormuz deal?

Progress has been made in talks between Iran and Oman, with a potential deal to reopen the Strait of Hormuz appearing increasingly possible. U.S. officials say a deal could come "today or tomorrow," though Iran denies direct U.S. negotiations are underway .

### Q: What were McDonald's Q2 results?

McDonald's beat earnings estimates but missed revenue expectations. U.S. same-store sales rose just 0.8% as traffic declined . CEO Chris Kempczinski described the issues as execution-related rather than strategic .

### Q: Why did McDonald's name a new U.S. president?

Skye Anderson was named president of McDonald's USA to accelerate performance in the company's largest market. Anderson, a 26-year veteran, succeeds Joe Erlinger, who led the division for more than six years .

### Q: What is the American Bitcoin settlement?

American Bitcoin agreed to pay $2.5 million to settle allegations that Gryphon Digital Mining improperly obtained a $2.2 million Paycheck Protection Program loan while operating as a cannabis industry software provider .

---

## 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, geopolitical developments, 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.

Gold Prices Hold Steady as Investors Await Hormuz Deal Outcome

 Gold Prices Hold Steady as Investors Await Hormuz Deal Outcome

**Gold traded in a narrow range on Wednesday, hovering near $4,070 to $4,155 an ounce as investors weighed the prospect of a diplomatic breakthrough between the U.S. and Iran against lingering uncertainties about the Federal Reserve's rate path .**

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## The Diplomatic Catalyst: "Very Good Discussions"

The precious metal has found support from growing optimism that a deal to reopen the Strait of Hormuz could be imminent. U.S. President Donald Trump described the day-long negotiations with Iran as "very good discussions," and Treasury Secretary Scott Bessent confirmed that an agreement could come as soon as today .

Qatar has reportedly drafted a proposal to help normalize commercial shipping through the strategic waterway . The news sent oil prices lower for a third consecutive day, easing inflation concerns and reducing the likelihood of aggressive Federal Reserve rate hikes .

The easing of inflation expectations has been a key driver of gold's recent performance. With lower energy costs reducing the pressure on consumer prices, markets are now pricing in just one rate hike by year-end, down from two as recently as last week . Less monetary tightening is generally positive for non-yielding gold.

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## The Price Action: A Narrow Range

Gold has been rangebound since late June, trading between roughly $3,885 and $4,200 per ounce . The recent positive developments have pushed prices toward the upper end of that range, with spot gold climbing above $4,100 to a two-week high during Wednesday's Asian session .

The metal's reaction to the news has been measured. After surging past $4,155 earlier in the week, gold has held steady as investors await confirmation that shipping through the strait will actually resume . As one analyst put it, "Gold is the liquidity sponge of the macro complex, and it's one of the first things to get hit on any whiff of rate-tightening risk" .

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## The Rate Path Factor

The Federal Reserve remains a wild card. Fed officials opted to keep rates unchanged for the fifth straight time last week, though three dissenters favored a hike . Philadelphia Fed President Anna Paulson, who voted with the majority, said she was "keeping an open mind" on the future direction of policy .

The market's attention will now shift to upcoming U.S. labor market data, including the ADP Employment Change report and Friday's Nonfarm Payrolls report, for fresh signals about the Fed's next policy direction . A hot inflation reading in next week's CPI report could hurt gold by reviving Fed tightening expectations, while a softer report would likely provide further support .

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## What This Means for Investors

For gold investors, the near-term outlook hinges on two key variables:

1. **The Hormuz Deal**: Any confirmed agreement would likely push oil prices lower, further easing inflationary pressures and potentially supporting gold. However, a delay or collapse in talks could trigger a sharp reversal .

2. **Fed Policy**: Markets are pricing in one rate hike by year-end, but the data-dependent Fed could adjust its stance based on incoming inflation and employment data .

Traders are also watching for a potential breakout from the $4,200 resistance level. A move above that could open the door for a rally toward the $4,500 level, while a break below $3,885 would signal a return to the bearish trend .

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## Frequently Asked Questions

### Q: Why are gold prices holding steady?

Gold prices are in a holding pattern as investors await confirmation of a deal to reopen the Strait of Hormuz. The prospect of easing geopolitical tensions has reduced inflation concerns and dollar demand, but traders are cautious until a definitive agreement is announced .

### Q: What is the significance of the Strait of Hormuz for gold?

The Strait of Hormuz is a key route for global oil shipments. A deal to reopen it would reduce oil prices, lower inflation expectations, and potentially reduce the need for aggressive Federal Reserve rate hikes—all of which are favorable for gold .

### Q: What is the Federal Reserve's latest policy stance?

The Fed held rates steady in July, but three officials dissented in favor of a hike. Markets are now pricing in one rate hike by year-end, down from two as recently as last week, reflecting easing inflation concerns .

### Q: Is gold a buy at current levels?

Analysts are watching the $4,200 resistance level. A break above that could signal a shift in market sentiment, while a break below $3,885 would indicate a return to the bearish trend. The outcome of Hormuz talks and upcoming U.S. economic data will likely provide direction .

---

## 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, geopolitical developments, and economic data 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.

Why Nvidia Stock Is the Big Winner From SpaceX Earnings

Why Nvidia Stock Is the Big Winner From SpaceX Earnings

**Elon Musk just handed Nvidia its strongest endorsement yet: SpaceX is going all-in on the chipmaker, building its AI empire exclusively on Nvidia systems. The announcement sent Nvidia shares higher while rival AMD tumbled nearly 9% after hours.**

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## "Exclusive to Nvidia": Musk's Endorsement Moves Markets

On SpaceX's first earnings call as a public company, CEO Elon Musk delivered a message that reverberated through the semiconductor industry. Going forward, SpaceX would build its AI and computing infrastructure **exclusively with Nvidia systems** .

"We think the Vera Rubin architecture is the best architecture. We think it's the best AI computer, and we greatly value our close cooperation and partnership on many levels with Nvidia," Musk told investors. "So we're exclusive to Nvidia" .

The announcement came as SpaceX reported its first quarterly results since its June IPO, beating expectations on both revenue and earnings. AI revenue climbed 213% quarter-over-quarter to $2.6 billion, driven by cloud service agreements and increased Grok and X subscriptions .

**The market's reaction was immediate and divided.** Nvidia shares rose roughly 3% during Tuesday trading and added another 1.8% after hours . AMD, which had been a supplier to SpaceX for rocket control systems and satellite computing equipment, plunged 8.99% after hours on fears of losing a major customer .

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## The Starmind Connection: Taking AI to Orbit

The partnership extends far beyond terrestrial data centers. SpaceX and Nvidia are jointly developing the compute payload for the **Starmind AI1 satellite**, a spacecraft designed to process AI workloads directly in low Earth orbit using Nvidia's latest Vera CPUs and Rubin GPUs .

SpaceX envisions an orbital network that could eventually grow to one million satellites, creating what would amount to a distributed AI supercomputer in space . The company has already asked the FCC for permission to deploy as many as one million orbital data center satellites between 311 and 1,243 miles above Earth .

**Nvidia's Space-1 Vera Rubin module can deliver up to 25 times the AI processing performance of an H100 GPU**, with commercial shipments expected to begin later this year . Prototype testing for Starmind AI1 is scheduled for early 2027, with mass production expected later that year .

Musk sees this as a solution to the growing challenge of building massive data centers on Earth. "Unlike their Earth-based counterparts, space-based solutions don't require companies to purchase large swaths of land," and cooling is less of an issue in orbit .

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## The Spending That's Moving Markets

SpaceX's commitment to Nvidia comes with a staggering price tag. The company's capital expenditures reached **$18.37 billion in the second quarter**, with $15.83 billion directed toward AI infrastructure—more than double the previous quarter and a 2,000% increase from a year earlier .

CFO Bret Johnsen defended the spending, noting that AI compute investments have "a period of recovery of less than a year" due to how quickly they are monetized . The company expects to end 2026 with more than **2 gigawatts of compute capacity** and close to **10 gigawatts by the end of 2027** .

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## Why This Matters for Nvidia's Future

The SpaceX deal represents a significant expansion of Nvidia's **"space computing"** portfolio. When Nvidia introduced its space platform in March, it named six launch partners but did not include SpaceX . Tuesday's announcement adds the aerospace giant to that ecosystem.

**The timing is critical.** Nvidia's stock has been trading in a narrow range around $200 for months, up just 10.8% year-to-date . With hyperscaler capex spending continuing to rise, some investors have worried that costs for other AI hardware—like memory chips—could eat into Nvidia's share of the budget . The SpaceX commitment helps answer that concern.

Needham analysts maintain a buy rating on Nvidia with a $270 price target, expecting 91,000 racks of Vera Rubin processors to ship in 2027 . The average analyst price target currently sits around **$314** .

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## The Other Side of the Coin

Not everything is smooth sailing. Nvidia's recent practice of extending supplier financing to AI startups—described by Barron's as acting as both "venture capitalist and central bank"—has raised questions about the sustainability of AI spending . The company's credit default swaps widened in July, signaling that investors are increasingly treating Nvidia as a financial counterparty, not just a chip supplier.

For SpaceX, the AI spending comes with its own risks. The company is burning cash at an unprecedented rate, and the Starmind satellite project has yet to prove it can generate a return. As one analyst noted, "The results give Elon Musk credibility and time, but the company will have to keep producing exceptional numbers to avoid its valuation being pulled back to reality" .

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## Frequently Asked Questions

### Q: What did Elon Musk announce about Nvidia and SpaceX?

A: Musk said SpaceX will build its AI and computing infrastructure **exclusively on Nvidia systems**, using the chipmaker's Vera Rubin architecture for both ground-based data centers and the Starmind orbital AI satellite project .

### Q: How did the announcement affect Nvidia and AMD stocks?

A: Nvidia shares gained about 3% during Tuesday trading and added another 1.8% after hours. AMD plunged 8.99% in after-hours trading after Musk confirmed SpaceX would stop purchasing AMD chips .

### Q: What is the Starmind AI1 satellite?

A: Starmind AI1 is a satellite being jointly developed by SpaceX and Nvidia to perform advanced AI computing directly in low Earth orbit. It will use Nvidia's Vera CPUs and Rubin GPUs and is part of a broader plan to create a network of up to one million orbital data center satellites .

### Q: How much is SpaceX spending on AI infrastructure?

A: SpaceX's capital expenditures hit $18.37 billion in Q2 2026, with $15.83 billion directed toward AI infrastructure—more than double the previous quarter and a 2,000% increase from a year earlier .

### Q: Is Nvidia stock a buy?

A: Analysts have a consensus price target of roughly $314, implying about 52% upside from current levels. Needham has a $270 target, while other firms range from the mid-$200s to above $400 .

### Q: Does the SpaceX deal change Nvidia's outlook?

A: It reinforces Nvidia's dominance in AI compute and extends its reach into the emerging orbital computing market. However, questions remain about the sustainability of AI spending and Nvidia's growing role as a financier for its own customers .

---

## 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.

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*Published: August 5, 2026*

Read more---

**Tags:** Nvidia, NVDA, SpaceX, SPCX, AMD, AI chips, Elon Musk, Starmind, Vera Rubin, orbital computing, AI infrastructure, semiconductor stocks, stock market, AI data centers

David Ellison: In Defense of the Paramount-Warner Deal

 David Ellison: In Defense of the Paramount-Warner Deal

**For months, David Ellison stayed quiet. As a coalition of Democratic state attorneys general sued to block his $110 billion acquisition of Warner Bros. Discovery, the Paramount Skydance CEO let his lawyers do the talking. Now, he's broken his silence—and his message is blunt: the fight isn't really about market share. It's about politics, CNN, and whether he can be trusted as a steward of the news .**

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## The Defense: "A Plainer Worry Sits Beneath the Briefs"

In a combative New York Times op-ed, Ellison framed the legal battle as a proxy war over his family's ties to President Donald Trump and fears that he would turn CNN into a mouthpiece for the administration .

"I believe this fight is not really about market share," Ellison wrote. "I believe a plainer worry sits beneath the briefs and the news releases: the news. The issue is whether I can be trusted as a steward of Warner's CNN. There has been speculation about my politics, my loyalties, my intentions" .

Ellison pushed back forcefully, insisting he has "regularly" voted for candidates of both parties and holds views that "would be called conservative and others that would be called liberal, just like most Americans" . He also made a direct pledge regarding the newsrooms he would control:

> "When it comes to the news operations owned by companies I control, I do not aspire to lead these companies to bend their newsrooms to my views. I believe that news should be based on facts and truth" .

## The Antitrust Case: "Hollywood's Story Can Have a Happy Ending"

Ellison also took on the antitrust arguments head-on. A coalition of 12 Democratic-led states, led by California Attorney General Rob Bonta, claims that the combined company would control roughly **27% of wide-release theatrical film distribution**, harming competition and reducing opportunities for writers and other creative workers .

Ellison countered that the combined entity would control **less than 20%** of U.S. television watch time—a figure that drops to **roughly 13%** when accounting for YouTube . He emphasized that the real competitors are not traditional studios but tech giants like Netflix, Amazon, and Apple, whose resources "dwarf ours" .

He also committed to a theatrical renaissance: a combined Paramount-Warner would produce **30 theatrical films and 170 television series annually**, backed by more than **$30 billion in annual content investment** . "Hollywood's story can have a happy ending only when we connect with our audience," he wrote . "It's the audience — the American people — who have the final say in whether a movie succeeds or fails" .

## The Elephant in the Room: CBS and CNN

The skepticism about Ellison's stewardship isn't baseless. In mid-2025, Paramount Skydance acquired CBS News and shortly thereafter reached a **$16 million settlement** with Trump over coverage of presidential candidate Kamala Harris on *60 Minutes* . Soon after, Ellison brought in **Bari Weiss**, a long-standing critic of progressive politics, to lead the news division—a move that prompted several CBS News journalists to quit, citing curbs on their editorial independence .

Ellison argues that these moves were about restoring trust in a media industry that is in crisis. Citing polling that shows American trust in media at a record low of **28%**, he framed his leadership as an effort to "tell it straight down the middle" .

## The Legal Landscape: A March 2027 Trial

The deal has already cleared significant hurdles. The U.S. Justice Department gave its approval in June after an eight-month investigation, and the European Commission signed off in July after Paramount agreed to withdraw from a European film distribution joint venture . Regulators covering **65 jurisdictions** have either approved the transaction or declined to challenge it .

However, the domestic legal challenge has effectively frozen progress. A federal judge in California has set a trial date for **March 2, 2027**, with the merger delayed until June 2027 . If the deal doesn't close, the Ellison family could be on the hook for billions in "kill fees" .

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## Frequently Asked Questions

### Q: What is the value of the Paramount-Warner Bros. Discovery deal?

The deal is valued at approximately **$110 billion** . If it closes, it would combine Paramount's CBS, Paramount Pictures, and Paramount+ with Warner's CNN, HBO, Warner Bros. studios, and Discovery networks.

### Q: Why are state attorneys general trying to block the deal?

A coalition of 12 Democratic-led states, led by California Attorney General Rob Bonta, argues that the merger would reduce competition in Hollywood by combining two of the five largest film distributors . They also express concerns about the impact on jobs and opportunities for creative workers .

### Q: What is David Ellison's main defense?

Ellison argues that the legal fight is fueled by politics and fear about his stewardship of CNN, not genuine antitrust concerns . He claims the combined company would still be far smaller than tech giants like Netflix and Amazon .

### Q: Has the deal been approved by any regulators?

Yes. The U.S. Justice Department and the European Commission have both approved the deal, and regulators in more than 60 jurisdictions have either approved or declined to challenge it . However, the U.S. lawsuit has effectively frozen progress.

### Q: What is the trial date for the antitrust lawsuit?

A federal judge has set a trial date for **March 2, 2027**. The two companies have agreed to delay their merger until June 2027 pending the outcome of the lawsuit .

### Q: Why are people skeptical of Ellison's commitment to impartial news?

Paramount Skydance reached a $16 million settlement with Trump over a *60 Minutes* interview before acquiring CBS News, and later appointed Bari Weiss, a conservative critic of progressive media, to lead the news division—leading to journalist departures .

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## Conclusion: A Fight for the Soul of Hollywood

David Ellison's op-ed marks a pivotal moment in the media industry's most consequential battle. He has framed the $110 billion Paramount-Warner merger not as a corporate consolidation, but as a fight for Hollywood's survival against tech behemoths . However, the skepticism from states and the Writers Guild is not easily dismissed . The merger's future will be decided not by a boardroom or a regulatory agency, but by a federal court in March 2027, and the outcome will determine whether Ellison gets his chance to build the "next great American media company"—or whether the deal collapses under the weight of political and legal scrutiny .

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## Disclaimer

**IMPORTANT:** This article is for informational and educational purposes only. The information contained herein is based on publicly available sources and reflects the author's understanding as of the publication date. The proposed merger is subject to ongoing litigation and may be modified, delayed, or blocked. You should consult with qualified professionals for guidance on specific issues.

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*Published: August 5, 2026*

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**Tags:** David Ellison, Paramount, Warner Bros. Discovery, media merger, antitrust lawsuit, CNN, Hollywood, CBS, Bari Weiss, Rob Bonta, $110 billion deal, media consolidation, streaming wars

Dow, S&P 500, Nasdaq Climb as Trump Says Hormuz Deal Is Close

 

Dow, S&P 500, Nasdaq Climb as Trump Says Hormuz Deal Is Close

**Markets rallied again on Wednesday as diplomatic signals pointed toward a breakthrough that could end the five-month war with Iran and reopen the Strait of Hormuz, sending oil prices plunging and easing inflationary pressures. But the enthusiasm was tempered by a sharp selloff in SpaceX and AMD stock after their earnings reports disappointed investors.**

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## The Diplomatic Catalyst: "Tomorrow or the Next Day"

The Dow Jones Industrial Average extended its powerful two-day rally, climbing over 200 points in early trading after President Donald Trump told reporters that a deal to reopen the Strait of Hormuz could come as early as Wednesday or Thursday . The comments followed similar optimism from Treasury Secretary Scott Bessent, who told CNBC that Washington and Tehran were nearing an agreement .

The backdrop for the diplomatic push is significant. Just days earlier, Trump had suspended what he described as a "major" military strike on Iran to allow negotiations to proceed . Qatar has reportedly drafted a proposal to reopen the waterway, and Iran is considering allowing European countries to remove mines from the strait, a move that would accelerate the normalization of shipping traffic .

On Tuesday, the S&P 500 surged 1.8% to close above the 7,700 mark for the first time, while the Dow climbed more than 900 points to a record high . The Nasdaq Composite outperformed both, gaining 2.59% to finish at 26,584.99 . The Wednesday rally built on that momentum, though the gains were more measured as investors digested a mixed bag of earnings reports.

## Oil Prices: The Relief Rally Continues

The prospect of a diplomatic breakthrough sent oil prices tumbling this week, with Brent crude falling roughly 5% on Tuesday and WTI crude dipping below $80 a barrel . The Strait of Hormuz is a narrow waterway that handles a substantial portion of global seaborne oil and liquefied natural gas shipments; its closure had sent prices soaring above $100 a barrel in July .

However, oil prices reversed slightly on Wednesday after Trump's comments, with Brent crude rising 1% to $80 per barrel . The stabilization reflects lingering skepticism that a deal will materialize quickly, even as diplomatic signals point toward progress.

The collapse in oil prices has been a primary driver of the market rally. Lower energy costs ease inflationary pressures, reducing the likelihood of aggressive Federal Reserve rate hikes and providing a tailwind for consumer spending .

## The Mixed Earnings Picture

Not all stocks participated in the rally. SpaceX tumbled roughly 11% in premarket trading after reporting its first quarterly results as a public company. The company's AI spending overshadowed a revenue beat, raising concerns about free cash flow and capital intensity . Additional pressure came from a looming share unlock that could flood the market with new supply .

AMD also fell roughly 7% after reporting adjusted earnings that narrowly topped Wall Street estimates and issuing a strong outlook. Investors were looking for a "blowout" quarter from the chipmaker, and despite record revenue of $11.54 billion and a 107% surge in data center revenue, the guidance didn't meet the loftiest expectations .

The divergence between the broader market's optimism and the tech sector's struggles reflects a market in transition. Investors are rotating into value-oriented names that benefit from lower oil prices while punishing stocks that were priced for perfection.

## What's Next: The Hormuz Watch

Investors are now watching for any confirmation that a deal has been signed. The market is pricing in a near-term breakthrough, and any delay or setback could trigger a sharp reversal in both oil prices and equities.

Key signals to watch include:

- **Official announcements from the U.S. or Iran confirming a deal**

- **Shipping traffic data showing increased vessel movement through the strait**

- **Oil price movements—a sustained drop below $80 would signal confidence in the deal**

- **Federal Reserve commentary on whether lower oil prices reduce pressure to hike rates**

## Frequently Asked Questions

### Q: What is the Strait of Hormuz and why does it matter?

The Strait of Hormuz is a narrow waterway between Iran and Oman through which roughly one-fifth of the world's oil supply passes . Its closure during the U.S.-Iran war sent oil prices above $100 a barrel. A deal to reopen it would flood the market with oil, lowering prices and reducing inflationary pressure.

### Q: What did Trump say about a deal?

Trump told reporters that a deal to reopen the Strait of Hormuz "could happen. Tomorrow or the next day" . Treasury Secretary Scott Bessent echoed the optimism, saying Washington and Tehran were nearing an agreement .

### Q: Why did SpaceX stock fall after earnings?

SpaceX fell roughly 11% because the company's AI spending overshadowed its revenue beat. Investors were concerned about free cash flow and capital intensity, especially with a share unlock looming .

### Q: Why did AMD stock fall despite beating earnings?

AMD fell roughly 7% because the chipmaker's guidance, while strong, didn't meet the most optimistic expectations. The stock had rallied roughly 140% year-to-date, and investors were looking for a "blowout" result .

### Q: Will oil prices keep falling?

If a deal to reopen the Strait of Hormuz is signed, oil prices could fall further. But if diplomatic efforts stall, prices could rebound sharply. The market is pricing in a breakthrough, creating a risk of reversal if the deal falls through.

### Q: What does this mean for the Federal Reserve?

Lower oil prices ease inflationary pressures, reducing the likelihood of aggressive Fed rate hikes. However, the Fed is still weighing three dissents at the July meeting favoring a hike, and traders are pricing in a 70% chance of a September rate increase.

---

## 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, geopolitical developments, and economic data 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.

'This Was Not an Exceptional Result': Why AMD Stock Tanked 5% After Earnings

 

'This Was Not an Exceptional Result': Why AMD Stock Tanked 5% After Earnings

**The chipmaker reported record revenue, a 50% sales jump, and a 107% surge in its data center business. And the stock fell anyway. Here's why good news wasn't good enough for Wall Street.**

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## The Numbers Looked Great. The Reaction Was Brutal.

On paper, Advanced Micro Devices delivered a quarter that most companies would frame and hang on the wall. Revenue hit a record **$11.54 billion**, up 50% year-over-year . Adjusted earnings per share came in at **$1.66**, beating the $1.62 consensus . The data center segment—the engine of the AI boom—generated **$6.7 billion in revenue**, up **107%** from a year earlier .

And yet, the stock tumbled **5%** in after-hours trading , extending losses to a roughly 9% slide from its regular session close .

The disconnect between strong results and a falling stock price came down to a single dynamic: **expectations had simply gotten too high.**

"*It was priced for something much closer to a blowout,*" said Shay Boloor, chief market strategist at Futurum . "*It was priced for an exceptional result, and this was not an exceptional result.*" 

---

## Why the Market Was Unimpressed

### 1. The Guidance Wasn't "Blowout" Enough

The central issue was the third-quarter revenue forecast. AMD guided for approximately **$13 billion** in Q3 revenue, plus or minus $300 million . That exceeded the consensus analyst estimate of about $12.5 billion .

But Wall Street's most optimistic forecasts had reached **$14 billion** . The stock had rallied so much heading into the report—up roughly 140% year-to-date—that only a "super blowout" would satisfy investors.

"*The company did beat across the board, but it wasn't enough to reset expectations for a stock that's trading nearly 60 times earnings,*" Boloor said .

### 2. The Gross Margin Outlook Raised Eyebrows

Another concern was gross margin. AMD's non-GAAP gross margin improved to **56%** in Q2, up from 55% in Q1 . However, the company guided for Q3 margins to remain roughly **flat at 56%** .

J.P. Morgan analyst Harlan Sur noted that the margin guidance "landed modestly below" what buy-side investors had expected going into the report . With rising AI infrastructure spending, investors were watching for signs of margin pressure.

### 3. Capex and the PC Market Warning

The company also reported a **"shocking" upside revision** in capital expenditures, which jumped to **$808 million** in Q2, up from $282 million a year earlier .

CEO Dr. Lisa Su also warned of a softer PC market in the second half of 2026, as higher memory and component costs weigh on demand . While AMD expects its client business to outperform the broader market, the cautious tone added to investor unease.

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## The Silver Lining: Analysts Remain Bullish

Despite the post-earnings selloff, Wall Street remains overwhelmingly positive on AMD's long-term prospects. The stock has a consensus **"Strong Buy"** rating, based on **28 Buy and six Hold** recommendations . The average analyst price target is roughly **$590**, implying about 11% upside from current levels .

**The bull case rests on several pillars:**

- **Data center momentum:** AMD expects data center revenue to double in 2027, with server revenue growing more than 80% annually in the second half of fiscal 2026 .

- **Helios ramp:** The new rack-scale AI solution, Helios, is set to begin shipping later this quarter and could drive significant share gains in the AI accelerator market .

- **Agentic AI opportunity:** Analysts believe the rise of agentic AI—systems that can autonomously perform tasks—will drive a massive expansion in CPU demand, benefiting AMD's EPYC processors .

William Blair analyst Sebastien Naji acknowledged that AMD's results left "much to prove" but noted that the company faces "intense competition across its major product lines and a high execution bar to meet" .

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## Frequently Asked Questions

### Q: Why did AMD's stock fall after beating earnings expectations?

A: AMD fell because expectations had become too high. The stock had rallied roughly 140% year-to-date, and investors were hoping for a "blowout" quarter. While the Q3 revenue guidance of $13 billion beat consensus, it fell short of the most optimistic forecasts of up to $14 billion .

### Q: Did AMD's data center business perform well?

A: Yes. Data center revenue surged 107% year-over-year to $6.7 billion, now representing 58% of total revenue . The segment is the primary driver of AMD's growth and is expected to continue accelerating .

### Q: What is the Helios platform?

A: Helios is AMD's new rack-scale AI solution designed for enterprise AI infrastructure . It is expected to begin shipping later this quarter and is seen as a key growth driver for the company's AI accelerator business .

### Q: Is AMD a buy after the earnings drop?

A: Analysts remain broadly bullish, with a consensus "Strong Buy" rating and an average price target of roughly $590 . However, some analysts warn that the stock is "priced for perfection" given its forward P/E of nearly 70x .

### Q: What is the risk for AMD investors?

A: Key risks include intense competition from Nvidia, potential margin pressure from rising AI infrastructure spending, and the risk that expectations remain too high for the company to consistently beat .

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## Conclusion: A Classic "Sell the News" Moment

AMD's post-earnings drop is a textbook example of the **"sell the news"** dynamic that often follows blowout quarters from high-flying stocks. The company executed well, delivered record results, and raised guidance. But the market was priced for perfection, and perfection was the only thing that could have pushed the stock higher.

As one analyst put it: "*This was not an exceptional result*" . That doesn't mean AMD's business is faltering. It means the bar for what qualifies as a positive surprise has been raised to an almost unreachable level.

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## 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.

Eli Lilly Crushes Q2 Estimates as Mounjaro and Zepbound Sales Surge, Raising 2026 Revenue Outlook

 Eli Lilly Crushes Q2 Estimates as Mounjaro and Zepbound Sales Surge, Raising 2026 Revenue Outlook

**The pharmaceutical giant delivered a 48% revenue jump to $22.97 billion, powered by blockbuster GLP-1 sales and international expansion, prompting a full-year guidance hike that sent shares soaring .**

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## The Numbers That Matter: A Blowout Quarter

Eli Lilly's second-quarter results were nothing short of spectacular, demonstrating the immense and still-growing demand for its metabolic medicines. The company's performance was driven by a dual-pronged success: the explosive growth of its flagship drugs in the U.S. and a massive international expansion, particularly in China.

**The key headline figures:**

- **Revenue:** $22.97 billion, up 48% year-over-year, well above the consensus estimate of about $20.73 billion .

- **Non-GAAP EPS:** $8.38, a 33% increase from a year ago, crushing the $6.01 estimate .

- **Net Income:** $7.1 billion, or $7.94 per share, up from $5.7 billion a year earlier .

- **Global Volume Growth:** 60% increase, showcasing the sheer scale of patient adoption .

### The Metabolic Engine: Mounjaro and Zepbound

The stars of the quarter were, once again, the company's GLP-1 therapies.

| Drug | Q2 2026 Revenue | Year-over-Year Change |

| :--- | :--- | :--- |

| **Mounjaro** | $9.94 billion | **+91%** |

| **Zepbound** | $4.93 billion | **+44%** |

*Source: CNBC, Yahoo Finance *

Mounjaro's worldwide revenue surged, fueled by a massive **172% jump in international sales** following its inclusion on China's National Reimbursement Drug List . This single move offset a 36% drop in realized prices outside the U.S. . In the U.S., where Mounjaro and Zepbound prescription volumes continue to rise, revenue climbed 33% on the back of strong demand .

### Foundayo's Debut: The Oral Pill Arrives

The second quarter marked the first earnings report including sales of Lilly’s newly launched obesity pill, **Foundayo**, which won U.S. approval in April . The new GLP-1 pill brought in **$98 million** in its first reported quarter, in line with analyst expectations of about $103 million . This launch puts Foundayo in direct competition with a rival oral drug from Novo Nordisk, setting the stage for the next battle in the GLP-1 market .

### Managing Lower Prices for Massive Volume

Lilly is demonstrating a clear strategy: prioritize volume over price to capture market share and establish a dominant global position. The **60% volume growth** was partially offset by a **13% decline in realized prices** .

- **U.S. Strategy:** Volume increased by 37%, while realized prices dropped by 3% .

- **International Strategy:** The massive 113% volume surge came with a 36% price decline, largely linked to Mounjaro's addition to China's formulary .

CEO Dave Ricks described the trade-off as a calculated move to "expand the market" and make these therapies accessible to a wider patient base .

## A Historic M&A Spree

Fueled by its massive financial windfall, Lilly is engaging in a historic acquisition spree. The company recently struck a deal to buy a psychedelics drugmaker in July and also announced plans to buy three vaccine makers in May . The aggressive business development is a strategic deployment of record cash flows to secure a pipeline for the future.

The company's second-quarter results included **$3.03 per share in charges** tied to these acquisitions . This is why, despite raising the underlying EPS guidance by $2.78, the full-year adjusted EPS outlook remained relatively flat at **$35.50 to $36.50** .

## The New Growth Engine: Manufacturing Expansion

Lilly is investing heavily in its manufacturing capacity to keep pace with demand. The company committed an additional **$4.5 billion** to expand its Indiana manufacturing sites . By investing in manufacturing while its competitors struggle to catch up, Lilly is creating a new competitive advantage.

## Looking Ahead: A "Brighter Future"

Eli Lilly's outlook for the rest of 2026 is more robust than ever. The company raised its full-year revenue guidance to **$85 billion to $87 billion**, up from the previous $82 billion to $85 billion and ahead of the Wall Street consensus . The performance margin guidance also improved, with Lilly now expecting margins between 49.0% and 50.5% .

CEO David Ricks highlighted that the market for GLP-1 therapies is only expanding, projecting global use will rise from approximately 20 million patients at the end of 2025 to 30 million by the end of 2026 .

Lilly shares rose nearly 7% in early trading following the report, reflecting investor confidence in the company's strategy of volume-driven growth and sustained pipeline innovation . The next chapter for investors will be watching whether the company can maintain this momentum through the second half and into 2027.

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## Frequently Asked Questions

### Q: How much revenue did Eli Lilly report for Q2 2026?

A: Eli Lilly reported revenue of **$22.97 billion** for the second quarter of 2026, representing a 48% increase from the same period a year earlier . This beat the Wall Street consensus estimate of roughly $20.6 billion .

### Q: What is Eli Lilly's new revenue guidance for 2026?

A: Following the strong Q2 results, Eli Lilly raised its full-year 2026 revenue outlook to between **$85 billion and $87 billion**, up from its previous range of $82 billion to $85 billion .

### Q: How did Mounjaro and Zepbound perform in the quarter?

A: Both drugs delivered exceptional growth. Mounjaro's worldwide revenue jumped **91% to $9.94 billion** . Zepbound's U.S. revenue rose **44% to $4.93 billion**, surpassing analyst expectations .

### Q: What is Foundayo and how much revenue did it generate?

A: Foundayo is Eli Lilly's newly launched oral obesity pill that won U.S. approval in April 2026 . It generated **$98 million** in sales for the second quarter, its first full quarter on the market .

### Q: Why did Eli Lilly's EPS guidance not increase as much as revenue?

A: Eli Lilly's underlying EPS guidance was raised by $2.78 per share at the midpoint, but this was more than offset by **$3.03 per share in charges** tied to acquisitions, resulting in a full-year EPS range of $35.50 to $36.50 .

### Q: What is Eli Lilly's strategy for dealing with lower drug prices?

A: Eli Lilly is prioritizing volume growth. The strategy accepts lower realized prices in exchange for capturing a larger market share, resulting in a 60% volume increase that is more than compensating for the 13% price decline globally .

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## 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.