Jefferies Financial Group Inc. operates as an investment banking and capital markets firm in the Americas, Europe, the Middle East, and the Asia-Pacific. The company operates in two segments, Investment Banking and Capital Markets, and Asset Management. It provides investment banking, advisory services with respect to mergers or acquisitions, debt financing, restructurings or recapitalizations, and private capital advisory transactions; underwriting and placement services related to corporate debt, municipal bonds, mortgage-backed and asset-backed securities, equity and equity-linked securities, and loan syndication services; and corporate lending services. The company also offers financing, securities lending, and other prime brokerage services; equities research, sales, and trading services; wealth management services; and online foreign exchange trading services. In addition, it provides investment grade distressed debt securities, U.S. and European government and agency securities, municipal bonds, leveraged loans, emerging markets debt, and interest rate and credit index derivative products; and manages and offers services to a diverse group of alternative asset management platforms across a spectrum of investment strategies and asset classes. The company was formerly known as Leucadia National Corporation and changed its name to Jefferies Financial Group Inc. in May 2018. Jefferies Financial Group Inc. was founded in 1962 and is headquartered in New York, New York.

Jefferies Financial Group Inc. демонстрирует смешанные результаты по ключевым финансовым показателям. Хотя компания имеет высокий уровень наличных средств и выручки, что является положительным фактором, однако высокие мультипликаторы P/E и P/B указывают на возможную переоцененность относительно сектора. Долговая нагрузка, выраженная высоким коэффициентом долга к капиталу, также вызывает опасения, что может негативно сказаться на финансовой устойчивости компании. Тем не менее, компания показывает высокие абсолютные значения чистой прибыли и валовой прибыли, что является положительным моментом. Показатели рентабельности, такие как ROE и ROA, находятся ниже медианы сектора, что может указывать на недостаточную эффективность использования капитала. Дивидендная доходность также показывает стабильный рост, что может привлечь инвесторов, ориентированных на доход. В целом, несмотря на некоторые сильные стороны, такие как высокая выручка и чистая прибыль, существуют значительные риски, связанные с долговой нагрузкой и переоцененностью, что требует осторожности в оценке компании.

Jefferies Financial Group Inc.

Key Points
CEO Elliott Hill has made some improvements in his year-and-a-half running Nike.
However, revenue is still flat, and profits are falling.
The stock isn't cheap, but if the company can get back to profit growth, the stock should rebound.
Nike (NYSE: NKE) CEO Elliott Hill took the reins of the vaunted sportswear giant a year-and-a-half ago with a tall task ahead of him.
Hill was asked to turn around the struggling Swoosh, which was facing the biggest drawdown in its history as a publicly traded company. Revenue growth had fallen as low as negative double digits, as Nike was losing share to upstart challengers like Deckers' Hoka and On Holding.
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Since taking over Nike, Hill has made a lot of changes. He's refreshed the management team, streamlined the organizational structure, and brought the focus of the company back to sport. He's also stepped up investments in innovation, pulled back on legacy styles, and reestablished relationships with key wholesale partners after the company overinvested in the direct-to-consumer channel.
Some of those efforts have paid off. Nike's revenue has stabilized with sales up 1% to $12.4 billion in the fiscal second quarter, its most recent one, and it's returned to growth in running, one of its biggest categories.
However, Nike has slumped in recent months and is back to hovering around an 8-year low as margins have continued to compress as the company invests in the turnaround. With the share price now below $55, Wall Street has taken notice.
Wall Street smells opportunity
Barclays upgraded the stock on Wednesday, lifting its rating from neutral to a buy-equivalent and raising its price target from $64 to $73.
Barclays noted Nike's improving inventory levels, which should help lift margins, and that the recovery in running could pave the way for the rest of the business.
Wells Fargo also recently reiterated its buy-equivalent rating on the stock, though it removed Nike from its list of top picks. Finally, Jefferies said that commentary from Dick's Sporting Goods in its fourth-quarter report gives it confidence in Nike's wholesale recovery.
Is Nike a buy?
Nike stock is now down 70% from its all-time high, which came at the end of the pandemic-era stock market boom. However, the stock isn't exactly cheap. In fact, Nike trades at a price-to-earnings ratio of 32 as its earnings per share has tumbled along with the stock.
The buy case for the stock, therefore, requires a real turnaround in the underlying business, though the seeds for that are there. Analysts expect profits to fall sharply when Nike reports third-quarter earnings later this month, but they see the company returning to bottom-line growth after that.
Despite its woes, Nike still has a lot of competitive advantages, including its well-known brand and roster of star athletes. Hill looks like he's making the right moves, and Nike should eventually find its way back to growth.
Investors will have to be patient, but Nike looks like a buy at the current price. The components of a turnaround are there. Still, it's up to Hill to put them together.
Should you buy stock in Nike right now?
Before you buy stock in Nike, consider this:
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Jeremy Bowman has positions in Nike. The Motley Fool has positions in and recommends Deckers Outdoor, Jefferies Financial Group, Nike, and On Holding. The Motley Fool recommends Barclays Plc. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Are Nike CEO Elliott Hill's Turnaround Efforts Paying Off? Wall Street Seems to Think So.

Shares of Jefferies Financial Group JEF lost more than 13% on Friday, following the lawsuit filed in New York state court by Western Alliance Bancorporation WAL, alleging JEF’s breach of contract and fraud related to a $126.4-million loan tied to the collapse of First Brands Group.
Reason Behind the Lawsuit Against JEF
Western Alliance claims that Jefferies failed to complete payments on a loan extended to the Point Bonita fund, an affiliate investment vehicle linked to Jefferies. The loan was backed by receivables purchased from First Brands.
First Brands is an auto-parts distributor that filed for bankruptcy in September 2025 amid allegations of fraud. After the company’s collapse, the receivables backing the loan reportedly became worthless, worsening the dispute between the lender and Jefferies.
Jefferies informed that it would not make the remaining payments due in early 2026, leaving $126.4 million unpaid. The lawsuit alleges that Jefferies and its affiliates breached the loan agreement and misrepresented their intention to repay the debt. Western Alliance claims the defendants “knew they did not intend to repay the loan in full,” which has led the bank to charge off the entire remaining balance.
JEF’s Response to Western Alliance’s Claims
Jefferies maintains that the loan arrangement was structured on standard market terms and was non-recourse. Western Alliance conducted its due diligence before extending the financing and retained the right to audit the receivables backing the loan.
The Point Bonita fund, which operates under the umbrella of Jefferies’ asset management platform, acted in good faith and maintained goodwill toward the bank throughout the relationship. Thus, Jefferies strongly disagrees with the allegations.
Jefferies remains confident in its position and intends to defend the lawsuit vigorously. The firm believes the legal process will ultimately demonstrate that the claims lack merit and clarify the circumstances surrounding the First Brands collapse.
JEF’s Price Performance & Zacks Rank
In the past six months, JEF shares have lost 41.6% compared with the industry’s 28% decline.
Image Source: Zacks Investment Research
Currently, Jefferies carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Legal Troubles for Other Finance Firms
In November 2025, the Federal Deposit Insurance Corporation (“FDIC”) filed a lawsuit against Capital One COF, alleging that the bank paid about $100 million less than it should have to help bail out depositors of Silicon Valley Bank and Signature Bank, when both collapsed in 2023.
The FDIC took control of Silicon Valley Bank and Signature Bank in March 2023, and estimated in June 2024 that it would recover $18.6 billion from 111 banks through special assessments. Banks with less than $5 billion in assets were exempted from these charges.
In sync with this, Capital One estimated in July 2025 that it might have to reserve an additional $200 million. The main concern of the dispute was whether Capital One understated its level of uninsured deposits by excluding a $56-billion position between two subsidiaries from regulatory filings that describe its financial condition.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Jefferies Shares Slip as Western Alliance Files $126M Loan Lawsuit

Key Points
The surge in oil prices will be a new hurdle for UPS to manage.
UPS expects to see revenue growth in 2026.
Margins will be a focus now, though.
Oil prices are soaring, knocking down transportation stocks today. UPS (NYSE: UPS) shares dropped 4.9% as of 12:05 p.m. ET, potentially giving investors an opportunity. This comes just days after one Wall Street firm raised its price target on UPS, citing its valuable, capital-intensive infrastructure.
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The HALO effect
Last week, Jefferies highlighted UPS as a key HALO trade. That term, reportedly coined by financial advisor Josh Brown, stands for "heavy asset, low obsolescence." It's meant to represent the market rotation out of sectors disrupted by artificial intelligence (AI), including software makers. Jefferies also raised its price target from $130 to $135 per share, according to reports. The new price target would represent 38% upside for UPS stock.
Yet the significant tangible assets, physical infrastructure, and lasting economic importance of companies like UPS are now in focus for another reason. The sharp surge in oil prices resulting from the war with Iran is hitting transportation stocks hard today.
Oil spiked well above $100 per barrel this morning. It has since pared some of those gains, but plenty of uncertainty remains about oil production and the effects of the Middle East conflict. Investors are considering just how high oil prices can go.
Long-term investors, though, might view today's drop in UPS stock as an opportunity. Oil prices rise and fall, and the latest shock should be temporary. UPS predicts revenue will return to growth in 2026 after declining nearly 3% in 2025. Today's 5% drop could soon be a distant memory if investors jump back into the stocks of industrial companies like UPS.
Should you buy stock in United Parcel Service right now?
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Howard Smith has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Jefferies Financial Group and United Parcel Service. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is Today's Drop in UPS Stock a Buying Opportunity?

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in Jefferies Group Inc. (Symbol: JEF), where a total volume of 32,065 contracts has been traded thus far today, a contract volume which is representative of approximately 3.2 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 95.8% of JEF's average daily trading volume over the past month, of 3.3 million shares. Especially high volume was seen for the $55 strike call option expiring June 18, 2026, with 13,750 contracts trading so far today, representing approximately 1.4 million underlying shares of JEF. Below is a chart showing JEF's trailing twelve month trading history, with the $55 strike highlighted in orange:
Newmont Corp (Symbol: NEM) options are showing a volume of 96,518 contracts thus far today. That number of contracts represents approximately 9.7 million underlying shares, working out to a sizeable 94.7% of NEM's average daily trading volume over the past month, of 10.2 million shares. Particularly high volume was seen for the $62.50 strike call option expiring March 20, 2026, with 11,726 contracts trading so far today, representing approximately 1.2 million underlying shares of NEM. Below is a chart showing NEM's trailing twelve month trading history, with the $62.50 strike highlighted in orange:
And Applied Optoelectronics Inc (Symbol: AAOI) saw options trading volume of 49,738 contracts, representing approximately 5.0 million underlying shares or approximately 80% of AAOI's average daily trading volume over the past month, of 6.2 million shares. Especially high volume was seen for the $115 strike call option expiring March 06, 2026, with 5,023 contracts trading so far today, representing approximately 502,300 underlying shares of AAOI. Below is a chart showing AAOI's trailing twelve month trading history, with the $115 strike highlighted in orange:
For the various different available expirations for JEF options, NEM options, or AAOI options, visit StockOptionsChannel.com.
Also see:
Financial Stocks Hedge Funds Are Buying
Funds Holding NAPA
ZDEU Videos
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Monday Option Activity: JEF, NEM, AAOI

Key Points
The website-hosting and domain-registration company’s fourth-quarter results were decent enough.
Expectations for this year’s revenue, however, disappointed.
Today’s guidance-prompted plunge may finally and fully force the market to rethink what it expects of GoDaddy, clearing the way for the stock’s recovery.
Just when it seems like its stock can't possibly sink any more than it already has, GoDaddy (NYSE: GDDY) finds a way. As of 11:42 a.m. ET today, shares of the website-host and domain registrar are down another 15.9%, dragging them to a two-year low that's 65% below their early 2025 peak.
Blame earnings... sort of. While its reported fiscal Q4 numbers topped analysts' estimates, revenue guidance for the quarter now underway was disappointing.
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In some ways, however, today's sizable stumble could also mark the stock's long-awaited bottom.
Decent quarter, disappointing guidance
GoDaddy turned nearly $1.3 billion worth of revenue into per-share profits of $1.80 during the three months ending in December, up from year-earlier comparisons of less than $1.2 billion and $1.36 per share. Better still, while the top line was in-line with estimates, analysts were only calling for per-share earnings of $1.58.
Wednesday's stumbling block, rather, was the company's outlook for the first quarter of 2026. GoDaddy says it's looking for revenue of around $1.26 billion, up 6% year-over-year, but shy of analysts' consensus projection of $1.28 billion. Its full-year top-line outlook also fell short of analysts' estimates. Given that fourth-quarter bookings growth of only 5% was slower than reported revenue growth (the former precedes the latter), there's no room for even this slight guidance shortfall.
As has been the case with so many other stocks' recent setbacks, artificial intelligence gets at least some of the blame for this one. While GoDaddy is embracing the technology by offering AI-powered tools to its own customers, artificial intelligence is also empowering rivals like Wix (NASDAQ: WIX). At the same time, it doesn't help that GDDY shares soared in 2024 in anticipation of a degree of growth that was never actually going to materialize.
Max pessimism
After a year's worth of poor performance, it's no surprise that the market has soured on this stock; Barclays, Jefferies, and RBC Capital Markets are just some of the analytical firms that recently dialed back their bullishness on GoDaddy.
There's a case to be made, however, that today's uncharacteristically big dip against a backdrop of so much pessimism marks the long downtrend's bottom... the "can't get any worse" moment that only becomes obvious after the fact. Bolstering this bullish argument is the fact that with today's setback, GoDaddy shares are finally back to where they were right before they began their exaggerated rally in late-2023.
Just tread lightly if that's what you're thinking. Bottom or not, there's certainly still some lingering volatility that will need to be worked out.
Should you buy stock in GoDaddy right now?
Before you buy stock in GoDaddy, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and GoDaddy wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $420,864!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,182,210!*
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James Brumley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Jefferies Financial Group and Wix.com. The Motley Fool recommends Barclays Plc and GoDaddy. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Here's Why GoDaddy Stock Is Getting Pummeled Today

Key Points
President Trump's tariffs have coincided with the slowest jobs growth since the pandemic.
Wall Street expects the S&P 500 to climb about 10% in the remaining months of 2026.
The S&P 500 trades at a rich valuation and it tends to perform poorly around midterm elections.
The S&P 500 (SNPINDEX: ^GSPC), the most popular benchmark for the U.S. stock market, posted double-digit returns in 2023, 2024, and 2025. And the index is off to a relatively strong start in 2026, adding a little more than 1% year to date amid continued enthusiasm about artificial intelligence.
However, President Trump's tariffs have created a great deal of uncertainty, and businesses have responded by hiring fewer workers. The economy added just 181,000 jobs in 2025, a sharp decline from 1.2 million in 2024. In fact, jobs growth has not been so weak since the pandemic in 2020.
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So what? Slow jobs growth hints at an economic slowdown, which is particularly concerning because the S&P 500 trades at a very expensive valuation. Nevertheless, most Wall Street analysts anticipate double-digit gains in the remaining months of 2026. Here's what investors should know.
The Wall Street consensus says the S&P 500 will climb about 10% in the remaining months of 2026
Collectively, S&P 500 companies reported an acceleration in revenue and earnings growth in 2025, and Wall Street anticipates another acceleration in 2026, driven by solid economic growth (supported by tax cuts and artificial intelligence spending) and one or two interest rate cuts from the Federal Reserve.
In turn, most analysts expect double-digit gains in the S&P 500 in the remaining months of the year. The chart below provides a consolidated view of where various Wall Street research organizations and investment banks think the benchmark index will finish the year. It also shows the implied upside from the current level of 6,940.
Wall Street Firm
S&P 500 Year-End Target
Upside
Oppenheimer
8,100
17%
Deutsche Bank
8,000
15%
Morgan Stanley
7,800
12%
Seaport Research
7,800
12%
Evercore
7,750
12%
RBC Capital
7,750
12%
Citigroup
7,700
11%
Fundstrat
7,700
11%
UBS
7,700
11%
Yardeni Research
7,700
11%
Goldman Sachs
7,600
10%
Canaccord Genuity
7,500
8%
HSBC
7,500
8%
Jefferies
7,500
8%
JPMorgan Chase
7,500
8%
Wells Fargo
7,500
8%
Barclays
7,400
7%
CFRA Research
7,400
7%
Societe Generale
7,300
5%
Bank of America
7,100
2%
Median
7,650
10%
Data source: Reuters, Yahoo Finance. The chart above shows year-end forecasts for the S&P 500 in 2026. Upside percentages have been rounded to the nearest whole number and are based on the index's level of 6,940 when this article was written.
The 20 Wall Street research organizations and investment banks listed above expect the S&P 500 to move higher in the remaining months of 2026, with projected returns ranging from roughly 2% to 17%. But the median forecast says the index will advance about 10%.
However, Wall Street has historically done a poor job forecasting where the S&P 500 will close in a given year, not because analysts are incompetent, but rather because predicting the future is impossible. In the last four years, the median year-end estimate for the S&P 500 was incorrect by an average of 16 percentage points.
Why Wall Street might be wrong about the S&P 500 in 2026
The S&P 500 currently trades at 22 times forward earnings, a valuation it has more or less maintained for the last 18 months. That is a meaningful premium to the 10-year average of 18.8 times forward earnings.
Previously, the S&P 500 has only sustained such an expensive valuation during two periods in history: the dot-com bubble in the late 1990s/early 2000s and the Covid-19 pandemic in the early 2020s. In both cases, the index ultimately dropped into a bear market.
The odds of a bear market in 2026 are arguably elevated because President Trump's tariffs are a source of economic uncertainty even in the best case scenario. Businesses have already cut back on hiring, and policy uncertainty will likely intensify as midterm elections approach. And uncertainty makes investors nervous.
Since 1950, the S&P 500 has return an average of just 4.6% in midterm election years, according to Carson Investment Research. More concerning, the S&P 500 has suffered an average intra-year drawdown of 17% during midterm election years. In other words, history says the index is likely to fall 17% at some point in 2026.
Importantly, investors should not interpret anything I've said as a reason to exit the stock market today. Past performance is never a guarantee of future results. But the current market environment warrants caution. Limit stock purchases to your highest-conviction ideas, and never buy stocks you aren't willing to hold through a steep drawdown.
Should you buy stock in S&P 500 Index right now?
Before you buy stock in S&P 500 Index, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and S&P 500 Index wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $429,385!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,165,045!*
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*Stock Advisor returns as of February 13, 2026.
HSBC Holdings is an advertising partner of Motley Fool Money. Bank of America is an advertising partner of Motley Fool Money. Citigroup is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Wells Fargo is an advertising partner of Motley Fool Money. Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Evercore, Goldman Sachs Group, JPMorgan Chase, and Jefferies Financial Group. The Motley Fool recommends Barclays Plc and HSBC Holdings. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Will the Stock Market Crash Under President Donald Trump in 2026? Wall Street Has a Surprising Answer for Investors.

Key Points
AppLovin stock fell sharply in the software sell-off last week, setting up a rebound.
Analysts say its Axon AI engine is performing well.
A short-seller retracted its claims yesterday.
Shares of AppLovin (NASDAQ: APP) were moving higher today as the fast-growing adtech company continued to bounce back after last week's sell-off ahead of its fourth-quarter earnings report tomorrow.
Yesterday, the stock jumped after a short-seller, CapitalWatch, retracted its accusation last month that the company was laundering money, and today it got a bullish note from Wall Street.
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As of 11:01 a.m. ET, the stock was up 2.7% on the news.
AppLovin sentiment reverses
The biggest piece of news out on AppLovin was that UBS lowered its price target on the stock from $840 to $686, reflecting the stock's recent pullback, but maintained a buy rating on the stock.
In the note, UBS said that AppLovin benefited from strong return on ad spend (ROAS) from its AI engine, Axon 2.0, as well as growing e-commerce spend and increasing advertiser adoption.
That came out one day after Jefferies reiterated a buy rating and a price target of $860 on the stock, saying that many of the recent concerns that have driven the stock lower were overblown.
What to expect from AppLovin's earnings report
Expectations seem to be improving heading into AppLovin's fourth-quarter report, and digital advertising giants Alphabet and Meta Platforms reported strong results for their fourth quarters, showing robust advertising demand.
Analysts expect the company to report $1.61 billion in revenue, up 48.1% from the quarter a year ago, and for adjusted earnings per share to increase from $2.07 to $3.07.
Other analysts have also reported strong growth in Axon adoption, so the signs are there for a post-earnings pop in AppLovin. We'll get the full story tomorrow afternoon when the adtech company reports earnings.
Should you buy stock in AppLovin right now?
Before you buy stock in AppLovin, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and AppLovin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,362!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,164,984!*
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*Stock Advisor returns as of February 10, 2026.
Jeremy Bowman has positions in AppLovin and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Jefferies Financial Group, and Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why AppLovin Stock Was Moving Higher Today

Key Points
AppLovin stock has been falling since late last year, largely on valuation concerns and competitive worries.
Shares of this well-watched and polarizing company, however, are also highly vulnerable to independent commentary that may or may not reflect a pricing agenda.
APP stock’s unpredictable nature makes it difficult to view in any long-term light at this time, bullish or bearish.
Shares of digital advertising specialist AppLovin (NASDAQ: APP) certainly got the new trading week started on the right foot, soaring 15.1% as of 12:40 p.m. ET Monday. And, more of the same could be in the cards.
Just don't dig in too deep if you're planning on digging in at all. This always-volatile meme stock could still just as easily start tumbling again.
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Bullish whispers
Investment bank Jefferies' analyst James Heaney is being given most of the credit for today's move. Multiple reports are circulating this morning that he reiterated the firm's per-share price target of $860 -- nearly 90% above the ticker's current price -- while calling the stock's 45% pullback from December's high a "great buying opportunity." Although this reiteration isn't yet directly confirmed, it is plausible, as this price target and bullish opinion was Jefferies' last-known verified stance.
It's not just Jefferies though.
While not a conventional research and analysis organization in the same vein as Jefferies, last week, independent investigative journalism entity CapitalWatch corrected and apologized for a damning but misguided money-laundering accusation of one of AppLovin's key shareholders, potentially reversing any selling the initial report may have spurred. Also last week, a well-followed independent investment analyst argued that the competition-driven worries dragging APP shares down this year aren't merited. The analyst instead believes the company will actually be able to use these new digital advertising tools -- offered by Alphabet and CloudX -- to its own advantage.
While both of these updates surfaced last week, the bearish market environment at the time may have obscured them. They may have only begun to get attention and circulate in earnest this week specifically because the reported reiteration from Jefferies put them into focus.
Just understand what AppLovin stock really is here
Take all of it with a grain of salt, of course. Again, as of the latest look, Jefferies' reiterated price target and Heaney's suggestion that the recent dip is a buying opportunity have not yet been confirmed by Jefferies or reported by a traditional news source. At the same time, it can be difficult to ferret out what's credible and what isn't from independent and/or unverified sources (potentially forcing a correction like the one issued by CapitalWatch), some of whom may have a vested interest in a stock's performance.
Nevertheless, these are factors impacting APP stock's price today.
The question is, does Monday's jump mark the beginning of a prolonged recovery?
The only good answer is... maybe. The chief challenge to making any call here is simply that meme stocks like this one are subject to the constant push-pull of such headlines. It's not an investment. It's still mostly just a speculative trade, reflecting a prediction of how the market's opinion of APP stock is apt to change in the foreseeable future.
Should you buy stock in AppLovin right now?
Before you buy stock in AppLovin, consider this:
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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $443,299!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,136,601!*
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James Brumley has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet and Jefferies Financial Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why AppLovin Shares Are Up More Than 15% Today

With deal-making and IPO activity picking up, investment banks (IB) are reclaiming center stage. Morgan Stanley MS and Jefferies Financial Group JEF offer two distinct ways to play the cycle.
MS is a global bulge-bracket franchise with diversified fee engines, while JEF is an agile mid-market specialist geared to advisory and underwriting rebounds. Both have shown resilience as M&A and IPO activity rebounded in 2024-2025. With the IB outlook turning brighter, the key question is which stock offers the better risk-reward from here: Morgan Stanley or Jefferies?
The Case for Morgan Stanley
Given the industry-wide turnaround in the IB business, Morgan Stanley’s performance has been impressive. The company’s IB fees soared 23% in 2025 and 35% in 2024 after plunging in 2023 and 2022. The year 2025 began on an optimistic note, but market sentiment cooled after Trump’s tariff policies launched on 'Liberation Day', casting a shadow over deal-making. Nonetheless, the momentum has rebounded, as deal-making activity started picking up. Looking ahead, a healthy global IB pipeline, an active M&A market, “reopening of the IPO market,” and the company’s leadership position will aid it amid the changing macro situation.
Additionally, Morgan Stanley’s trading business performance has been stellar over the past several quarters, attributable to uncertainty surrounding the tariffs and macroeconomic headwinds. As market volatility and client activity are expected to remain decent, the company’s trading business will likely continue to grow.
Morgan Stanley’s partnership with Japan’s Mitsubishi UFJ Financial Group, Inc. will keep supporting profitability. In 2023, the companies announced plans to deepen their 15-year alliance by merging certain operations within their Japanese brokerage joint ventures. These efforts have solidified the company’s position in Japan’s market. The company’s Asia region revenues surged 23% year over year to $9.42 billion in 2025.
Although Morgan Stanley has leaned heavily into the IB business, it has been diversifying into more stable revenue-generating sources like asset and wealth management businesses, creating a more balanced revenue stream across cycles. The wealth and asset management segments’ aggregate contribution to total net revenues jumped to almost 54% in 2025 from 26% in 2010. As of Dec. 31, 2025, total client assets across both segments reached $9.3 trillion, bringing the company closer to its longstanding $10 trillion asset management target set by former CEO James Gorman.
The Case for Jefferies
Jefferies, while expanding into lending and merchant banking, remains primarily an investment banking-driven firm with a strong foothold in mid-market advisory and capital markets. The company’s total IB fees increased 10% in fiscal 2025 and 52% fiscal 2024 after declining in the two years before that.
Clarity on tariff plans and other economic data shows that IB business is picking up pace, as companies adapt to the changing environment. In the near term, interest rate cuts and further monetary policy easing will likely continue to support deal-making activities. The healthy IB pipeline, an active M&A market and Jefferies’ established mid-market position could enable stronger growth.
Further, JEF has been benefiting from strategic partnerships and joint ventures (JVs). As of Nov. 30, 2025, Sumitomo Mitsui Financial Group, Inc. held a 14.3% fully diluted stake in Jefferies. Building on that position, in September 2025, Sumitomo Mitsui agreed to increase its equity stake to up to 20% and signed a memorandum of understanding to form a Japan-based JV, expected to be launched in January 2027.
Beyond the IB business, Jefferies operates in the asset management business, which is much smaller than IB. Nearly 10% of its revenues come from the asset management segment, which is likely to grow as the Fed lowers interest rates, inducing investments in the markets.
JEF & MS: Price Performance, Valuation & Other Comparisons
Over the past year, shares of Morgan Stanley have risen 31.8%, while Jefferies has lost 20.4%.
One-Year Price Performance
Image Source: Zacks Investment Research
Additionally, JEF has lagged the Zacks Investment Bank industry, while MS has outperformed it. Hence, in terms of investor sentiments, Morgan Stanley clearly has the edge.
In terms of valuation, Jefferies is currently trading at a 12-month forward price-to-earnings (P/E) of 13.03X. MS stock, on the other hand, is currently trading at a 12-month forward P/E of 16.46X.
P/E F12M
Image Source: Zacks Investment Research
Therefore, Jefferies is inexpensive compared to Morgan Stanley.
JEF’s return on equity (ROE) of 7.27% is below Morgan Stanley’s 16.92%. Further, MS outscores the industry’s ROE of 12.54% while JEF does not. This reflects Morgan Stanley’s efficient use of shareholder funds to generate profits.
ROE
Image Source: Zacks Investment Research
How Do Estimates Compare for Jefferies & MS?
The Zacks Consensus Estimate for MS’ 2026 and 2027 revenues suggests a year-over-year increase of 6% and 4.9%, respectively. Also, the consensus estimate for earnings implies 8.4% and 7.1% growth for 2026 and 2027, respectively. Earnings estimates for both years have been revised north over the past week.
MS Estimate Revision
Image Source: Zacks Investment Research
On the contrary, analysts are more bullish on Jefferies’s prospects. The Zacks Consensus Estimate for JEF’s fiscal 2026 and fiscal 2027 revenues suggests a year-over-year rise of 16.5% and 16.3%, respectively. Further, the consensus estimate for fiscal 2026 earnings indicates a 50.3% jump, while the same is anticipated to increase 38.1% for fiscal 2027. Earnings estimates for both years have remained unchanged over the past seven days.
JEF Estimate Revision
Image Source: Zacks Investment Research
MS or JEF: Which Stock is Winning the Wall Street Comeback?
While Jefferies offers a cheaper valuation and faster projected growth, Morgan Stanley looks like the sturdier, higher-quality way to ride the reopening of capital markets. MS couples a rebounding IB engine with a consistently strong trading franchise that tends to benefit when volatility and client activity stay elevated. More importantly, its wealth and asset-management platform (now contributing about half of net revenues) adds durability across cycles and supports steadier capital returns.
Morgan Stanley’s Japan expansion through the MUFG alliance is another underappreciated lever, evidenced by the sharp jump in Asia revenues in 2025. Thus, MS justifies its premium multiple. For investors prioritizing resilience plus upside, Morgan Stanley is the better bet.
At present, Morgan Stanley sports a Zacks Rank #1 (Strong Buy), while Jefferies carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

MS or JEF: Which Stock to Bet on Amid Surge in Deal-making and IPOs?

Key Points
Jefferies analysts published a positive note on Meta today.
Meta's stock has been struggling, and is now again the cheapest of the Magnificent Seven stocks.
But Jefferies believes Meta has new monetization opportunities that will come to bear in 2026.
Shares of Facebook, Instagram, WhatsApp and Threads parent Meta Platforms (NASDAQ: META) rallied 5.7% on Thursday, as of 3:55 p.m. EDT.
Although one of the Magnificent Seven stocks, Meta's performance over the past year has not been so magnificent, with the stock just about flat and trailing all of its Mag Seven peers over that time.
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However, one Wall Street analyst thinks better times are ahead, maintaining his bullish stance and keeping his optimistic price target on the stock in a new note today.
Jefferies says Meta could rally 45%
Today, Jefferies analyst Brent Thill published a note on Meta, reiterating his "Buy" rating and a $910 price target. That would mark about a 45% gain over yesterday's closing stock price.
Thill gives several reasons for optimism, one of which is Meta's underperformance relative to peer Alphabet (NASDAQ: GOOG)(NASDAQ: GOOGL) over the past year, with Alphabet having appreciated some 65% over that time while Meta has been flat, following a sell-off after its third quarter earnings report in October.
Meta is now the cheapest of the Mag Seven stocks, at just 28.5 times trailing earnings. And while much has been made of Meta's hefty spending plans for AI and the continued losses in its Reality Labs division, Thill still sees the core social media business benefiting from the company's AI flywheel. Additionally, Thill sees new monetization opportunities in messaging app WhatsApp, as well as Threads, Meta's competitive platform to Elon Musk's X (formerly Twitter).
Yesterday, Meta announced it would be rolling out digital ads to all global users of the Threads platform, after trialing ads in select markets beginning last Spring. Meta also disclosed that Threads now has an impressive 400 million monthly active users (MAUs).
Meta needs to prove it can earn a return on its AI spending
Thill also expressed optimism that Meta's profligate spending on AI infrastructure and talent, which accelerated sharply last year, will begin to bear fruit in 2026.
This appears to be the big issue with Meta's stock right now. In 2022, the company changed its name to Meta and embarked on a quest to build out its Metaverse platform. Those tens of billions in spending don't appear to have much to show for it, at least not yet, with the Reality Labs division continuing to lose $4.4 billion last quarter alone.
In light of Reality Labs' continued losses, it's no surprise investors are skeptical of the company's massive generative AI investments today. The good news that Thill notes is that this AI spending still benefits Meta's core digital advertising business, which saw an impressive 26% growth last quarter, which is a notable growth rate for a business as large as Meta's social media properties.
Investors can look forward to hearing more on the company's AI progress next Wednesday, Jan. 28, when the company reports earnings.
Should you buy stock in Meta Platforms right now?
Before you buy stock in Meta Platforms, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Meta Platforms wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $460,340!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,123,789!*
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*Stock Advisor returns as of January 22, 2026.
Billy Duberstein and/or his clients have positions in Alphabet and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Jefferies Financial Group, and Meta Platforms. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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