Microsoft Corporation develops and supports software, services, devices and solutions worldwide. The Productivity and Business Processes segment offers office, exchange, SharePoint, Microsoft Teams, office 365 Security and Compliance, Microsoft viva, and Microsoft 365 copilot; and office consumer services, such as Microsoft 365 consumer subscriptions, Office licensed on-premises, and other office services. This segment also provides LinkedIn; and dynamics business solutions, including Dynamics 365, a set of intelligent, cloud-based applications across ERP, CRM, power apps, and power automate; and on-premises ERP and CRM applications. The Intelligent Cloud segment offers server products and cloud services, such as azure and other cloud services; SQL and windows server, visual studio, system center, and related client access licenses, as well as nuance and GitHub; and enterprise services including enterprise support services, industry solutions, and nuance professional services. The More Personal Computing segment offers Windows, including windows OEM licensing and other non-volume licensing of the Windows operating system; Windows commercial comprising volume licensing of the Windows operating system, windows cloud services, and other Windows commercial offerings; patent licensing; and windows Internet of Things; and devices, such as surface, HoloLens, and PC accessories. Additionally, this segment provides gaming, which includes Xbox hardware and content, and first- and third-party content; Xbox game pass and other subscriptions, cloud gaming, advertising, third-party disc royalties, and other cloud services; and search and news advertising, which includes Bing, Microsoft News and Edge, and third-party affiliates. The company sells its products through OEMs, distributors, and resellers; and directly through digital marketplaces, online, and retail stores. The company was founded in 1975 and is headquartered in Redmond, Washington.

Microsoft Corporation

Microsoft (NASDAQ: MSFT) is scheduled to provide an investor update where they will discuss progress on developing artificial intelligence.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
*Stock prices used were the afternoon prices of Oct. 24, 2025. The video was published on Oct. 26, 2025.
Should you invest $1,000 in Microsoft right now?
Before you buy stock in Microsoft, 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 Microsoft 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 $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 27, 2025
Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Should You Buy Microsoft Stock Before This Huge Investor Update?

For Immediate Release
Chicago, IL – October 28, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Microsoft MSFT, Apple AAPL, Alphabet GOOGL, Amazon AMZN and Meta Platforms META.
Here are highlights from Monday’s Analyst Blog:
Five of Seven Mega-Caps Report: Global Week Ahead
What’s happening across this Global Week Ahead?
· Renewed trade tensions and talks between Washington, Beijing and Canada will dominate a week, headlined by
· Central bank decisions in the United States, Canada, and Europe, while
· Argentina's voters head to the polls
Next are Reuters’ five world market themes, re-ordered by equity traders—
(1) Five of the Seven Mega-Cap Stars Report Their Q3 Earnings
Mega-cap tech and growth company earnings reports headline a massive week of U.S. corporate results that could shed light on the state of the effervescent "AI trade.”
Microsoft, Apple, Alphabet, Amazon and Meta Platform — five of the "Magnificent Seven" mega-cap companies that dominate equity indexes — all report earnings.
Investors will also be scouring data for signs of the costs and impact of shifting U.S. trade policy. S&P500 companies are estimated to have increased Q3 earnings by 9.2% from the prior year, with a greater-than-typical number of companies beating profit estimates so far, according to LSEG IBES data.
(2) On Wednesday, Both Bond & Stock Traders Count on a 25-bps FOMC Cut
Markets are all but certain that the U.S. Federal Reserve will cut interest rates by a quarter-point when it concludes its meeting on Wednesday, and they are showing similar conviction for another trim in December.
Still, that year-end cut might be less clear if the government shutdown doesn't end, leaving data-guided policymakers driving blind without official economic indicators.
Meanwhile, Trump is expected to meet with Chinese President Xi Jinping on Thursday as part of a trip to Asia and on the sidelines of the Asia-Pacific Economic Cooperation CEO Summit.
Their long-awaited rendezvous had been called into question following an escalation in trade tensions and a standoff over China's restrictions on rare earth exports, as well as U.S. curbs on technology exports amid Trump's threat to impose 100% tariffs, all of which remain a market vexation — and a consideration for the Fed.
(3) The ECB meeting ends on Thursday. They Likely Stay Pat. The Bank of Canada (BoC) Looks to Cut its Policy Rate for a 2nd Month.
That's right, the Bank of Canada is also expected to cut rates for a second month running on Wednesday with a pick-up in inflation not expected to stand in its way, although Trump's announcement that all trade talks with the country are terminated will cast a cloud.
And the European Central Bank (ECB) ends a meeting on Thursday, although it appears to be in "nothing to see here" mode, with a Reuters poll of economists predicting it is likely to leave rates unchanged at 2% for a third straight meeting and remain on hold until the end of the year. Traders see a roughly 65% chance of a quarter-point cut by mid-2026 given the downside risks to economic growth.
Headwinds are looming, however. Apart from trade tensions, there is still French political turbulence and an election in the Netherlands on Wednesday dominated by populist cross-currents. So, ECB chief Christine Lagarde may be pressed on whether the bloc remains in a "good place.”
(4) Also Thursday, the Bank of Japan (BoJ) Should Stay Put with Its Policy Rate
The Bank of Japan is likely to forgo a rate hike next Thursday in favor of a move in December or January, but not due to pressure from the country's dovish new premier.
Two-thirds of analysts polled by Reuters say fiscal and monetary dove Sanae Takaichi, who ascended to the top job on Tuesday, won't delay monetary tightening, although her oft-repeated view is that the central bank should be aligned with government policies.
Instead, analysts and traders point to BOJ Governor Kazuo Ueda's consistently cautious tone, particularly on potential tariff fallout, even with his board performing a conspicuously hawkish pivot last month.
And his desire to see more data — including U.S. Christmas shopping trends — has most analysts eyeing a December hike at the earliest.
(5) Argentina’s Mid-term Elections Re-shape the Ruling Milei Era
Argentina's mid-term elections on Sunday gave President Javier Milei a convincing win in the country’s midterms, outpacing rival Peronists 41% to 24.5%. After Milei’s inflation-crushing economic reform program, the peso is up +10% upon his victory.
Deepening ties with Washington have delivered some of the best returns for emerging market investors since Milei took over in December 2023. U.S. President Donald Trump's unprecedented backing, including direct intervention in FX markets, a $20 billion central bank swap line and the prospect of another $20 billion loan to shore up government bonds hadn't previously stopped the peso's slide to record lows.
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Quantum Computing Stocks Set To Soar
Artificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.
Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.
Access the Report Free Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Zacks Analyst Blog Highlights Microsoft, Apple, Alphabet, Amazon and Meta Platforms

Key Points
iPhone sales are maintaining momentum, according to a new research report.
Apple reports fourth-quarter earnings later this week.
Apple stock is attractively priced for the long-term investor.
Apple (NASDAQ: AAPL) stock has been trailing the market this year, knocked off its perch as the most highly valued stock in the world by both Nvidia and perennial rival Microsoft. But it's never been a great idea to bet against this Warren Buffett favorite, which has several features that make it a powerhouse tech stock.
The stock is already roaring back to life, hitting new highs recently on the news of strong iPhone sales. Is it time to add it to your portfolio?
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Win for the iPhone
iPhone sales are an important, perhaps the most important, indication of what's happening at Apple. That's because they account for about half of Apple's total sales. The iPhone is Apple's premier product, the linchpin in its ecosystem of connecting products.
Apple stock tends to rise and fall along with iPhone sales growth, or even market sentiment about where iPhone sales are headed. Since Apple is currently the third-most-valuable company in the world, and this is its signature product, consumer behavior trends will impact Apple stock.
Recently, there's been momentum. That started with an excellent update in the company's fiscal third quarter (ended June 28), when iPhone sales increased 13% year over year.
Recently, market research firm Counterpoint said that sales of the iPhone 17, Apple's latest release, outpaced iPhone 16 sales by 14% over the first 10-day period it was for sale in the U.S. and in China. These are the tech company's largest markets. The base model is popular in China, while the premium model is doing well in the U.S.
The new iPhone Air, which is the thinnest smartphone on the market but has fewer capabilities, has been less thrilling. But the device is an important reminder that Apple has the most cutting-edge technology in the space, a thumbs-up for its ability to keep its dominant position in the space.
Apple's edge at its best
iPhone users tend to be loyal to Apple, and they'll often buy a range of interconnected Apple products like Macs, iPads, and AirPods. One of the features users love about Apple is its quality, which means they don't necessarily need to upgrade every time there's a new launch. The market keeps tabs on when iPhone users find it valuable to upgrade to a new device.
The Apple ecosystem is a major edge for the company over other hardware companies. It also increasingly relies on software for sales growth, and subscriptions in particular, which is a higher-margin business. This is the kind of business with a competitive edge that Buffett loves, especially when it's consumer focused. While subscription services are a recurring revenue stream, which means Apple can rely on those monthly, high-margin payments coming in, keeping satisfied customers in the ecosystem is another way to generate reliable revenue.
Buy Apple stock today?
Apple stock has already fallen a bit, and investors will get more information when Apple reports fiscal fourth-quarter and full-year earnings.
The market hasn't been fully satisfied with Apple's progress in artificial intelligence (AI) and seems to be worried about whether Apple is keeping up with its competitors. However, higher iPhone sales demonstrate that at the consumer level, users are just fine with the state of Apple Intelligence right now. More than that, they love Apple products, and as Apple keeps releasing new upgrades and technology, they will continue to buy more of them.
That's the basis of Apple's incredible system, and the company should remain a leader in technology well into the future.
Apple isn't likely to be a high-growth stock at this stage of the game, but it should be reliable for gains and value, as well as a growing dividend. I wouldn't bet against Apple right now, and trading at 29 times forward one-year earnings, it's reasonably valued.
Should you invest $1,000 in Apple right now?
Before you buy stock in Apple, 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 Apple 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 $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 27, 2025
Jennifer Saibil has positions in Apple. The Motley Fool has positions in and recommends Apple, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. 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.

Apple Stock Is Soaring on iPhone Sales. Is It Time to Reconsider This Warren Buffett Stock?

For Immediate Release
Chicago, IL – October 28, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: Microsoft Corp. MSFT, Alphabet Inc. GOOGL, Berkshire Hathaway Inc. (BRK.B), C&F Financial Corp. CFFI and Syntec Optics Holdings, Inc. OPTX.
Here are highlights from Monday’s Analyst Blog:
Top Analyst Reports for Microsoft, Alphabet and Berkshire Hathaway
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Microsoft Corp. (MSFT), Alphabet Inc. (GOOGL) and Berkshire Hathaway Inc. (BRK.B), as well as two micro-cap stocks, C&F Financial Corp. (CFFI) and Syntec Optics Holdings, Inc. (OPTX). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-markets Pick Up Where They Left Off Last Week
Today's Featured Research Reports
Microsoft’s shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+24.9% vs. +21.8%). The company capitalizes on AI business momentum and Copilot adoption alongside accelerating Azure cloud infrastructure expansion. Recently, MSFT introduced its first proprietary AI models, MAI-Voice-1 and MAI-1-preview.
Microsoft projects Azure growth of 37% for fiscal first-quarter 2026. Strong Office 365 Commercial demand has been propeling Productivity and Business Processes revenue growth. ARPU is increasing through E5 and M365 Copilot uptake across key segments. Strategic execution through expanding scale and enterprise customer growth is driving non-AI services.
Xbox revenues are benefiting from strength across third-party and first-party content offerings. The Zacks analyst expects fiscal 2026 net sales to grow 12.9% from fiscal 2025. However, elevated operating expenses and Azure investments amid intensifying cloud competition remain headwinds.
(You can read the full research report on Microsoft here >>>)
Shares of Alphabet have outperformed the Zacks Internet - Services industry over the year-to-date period (+37.7% vs. +37.1%). The company is benefiting from accelerated growth across AI infrastructure and Generative AI Solutions. Google Cloud’s annual revenue run rate is now more than $50 billion. GOOGL is advancing visual and contextual search capabilities.
The Circle to Search feature is now active on more than 300 million devices. AI Overviews reach more than 2 billion users per month and are available in above 200 countries across 40 languages. It is now driving above 10% more queries globally.
On the litigation front, per the latest ruling in the ongoing lawsuit between GOOGL and the DOJ, the former is now required to share Search data with rivals, but need not divest Chrome and Android, providing a much-needed relief. However, stiff competition in cloud computing has been concerning.
(You can read the full research report on Alphabet here >>>)
Berkshire Hathaway’s shares have outperformed the Zacks Insurance - Property and Casualty industry over the year-to-date period (+7.7% vs. +7.2%). The company is one of the largest property and casualty insurance companies with numerous diverse business activities. A strong cash position supports earnings-accretive bolt-on buyouts and is indicative of its financial flexibility.
Continued insurance business growth fuels an increase in float, drives earnings and generates maximum return on equity. The non-insurance businesses have also been doing well in the last few years. The insurer has also started increasing its investment in Japan. A sturdy capital level provides further impetus. Shares of Berkshire have outperformed the industry year to date.
However, exposure to cat losses induces earnings volatility and also affects underwriting results. Huge capital expenditure remains a headwind. Also, it remains to be seen how the behemoth fares when Greg Abel succeeds Warren Buffett as CEO of Berkshire.
(You can read the full research report on Berkshire Hathaway here >>>)
Shares of C&F Financial have outperformed the Zacks Banks - Southeast industry over the past year (+15.7% vs. +1.1%). This microcap company with market capitalization of $223.18 million offers strong earnings momentum and profitability, with Q2 2025 net income up 54% year over year to $7.8 million and ROE at 14.7%.
Loan growth remains disciplined at 10.3% annually, supported by geographic expansion and diversified credit exposure. Asset quality is sound, with minimal nonperforming loans (0.07%) and strong reserves (4.85% of loans). Capital strength (Tier 1 ratio 10%) and liquidity ($984 million) underpin dividend sustainability and valuation upside. Shares trade at 0.93X tangible book and 8X earnings.
However, rising charge-offs (2.42%) in consumer finance, high uninsured deposits (30%) and potential margin compression from rate normalization present near-term risks, alongside competition in auto lending and mortgage volatility.
(You can read the full research report on C&F Financial here >>>)
Syntec Optics’ shares have outperformed the Zacks Technology Services industry over the past year (+77.1% vs. +55.4%). This microcap company with a market capitalization of $104.48 million is strategically positioned in high-growth, high-barrier defense and aerospace markets, producing over 17,000 optics for LEO satellites and rocket fuel actuators.
Syntec Optics’ expertise in hyperspectral imaging supports advanced military surveillance, with capabilities in nanotech-enabled optics and coatings. Operating from a vertically integrated U.S. facility, Syntec offers agile, end-to-end manufacturing aligned with reshoring and national security priorities. It benefits from strong photonics sector tailwinds, including CHIPS Act incentives.
However, governance concerns loom with nine material internal control weaknesses, raising risks around financial reliability. Profitability declined in Q2 2025 amid margin pressure and reduced consumer sales, contributing to a net loss. Liquidity is tight, with high leverage, and end-market volatility. Despite a 80% one-year stock gain, valuation remains above industry peers.
(You can read the full research report on Syntec Optics here >>>)
Why Haven't You Looked at Zacks' Top Stocks?
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can access their live picks without cost or obligation.
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Quantum Computing Stocks Set To Soar
Artificial intelligence has already reshaped the investment landscape, and its convergence with quantum computing could lead to the most significant wealth-building opportunities of our time.
Today, you have a chance to position your portfolio at the forefront of this technological revolution. In our urgent special report, Beyond AI: The Quantum Leap in Computing Power, you'll discover the little-known stocks we believe will win the quantum computing race and deliver massive gains to early investors.
Access the Report Free Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
C&F Financial Corporation (CFFI): Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Zacks Analyst Blog Highlights Microsoft, Alphabet, Berkshire Hathaway, C&F Financial and Syntec Optics

Key Points
Artificial intelligence (AI) is a global game-changer that can add $15.7 trillion to the worldwide economy by 2030, according to one lofty projection.
Palantir's sustainable moat is the primary catalyst responsible for a nearly 2,800% gain in its shares since the start of 2023.
However, Palantir is facing an uphill battle against historical headwinds.
For the last three years, no innovation has captivated the attention of Wall Street and everyday investors quite like the evolution of artificial intelligence (AI). Empowering software and systems with the tools to make split-second decisions without the need for human oversight is a game-changer for most industries around the globe, and a technological leap forward that can add $15.7 trillion to the global economy by 2030, according to the analysts at PwC in Sizing the Prize.
While Nvidia has been the clearest beneficiary of the AI revolution on a nominal-dollar basis – its market value has climbed by $4.2 trillion since the end of 2022 – the argument can be made that AI-data mining specialist Palantir Technologies (NASDAQ: PLTR) has knocked Nvidia from its pedestal.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Since 2023 began, shares of Palantir have surged by roughly 2,780%, with the company adding well over $400 billion in market value. It went from being a business of fringe importance in the tech sector to the 20th-largest publicly traded company on U.S. stock exchanges, as of the closing bell on Oct. 24.
With a move of this magnitude, you can be certain that Wall Street and investors are eagerly awaiting Palantir's third-quarter operating results, which the company will release after the close of trading on Monday, Nov. 3.
Although Palantir has a habit of leaping over the consensus earnings per share (EPS) forecast of analysts -- it's topped expectations by a double-digit percentage in three of the last four quarters -- it seems far likelier that Palantir will disappoint Wall Street come Nov. 3.
Palantir's competitive edge has been on full display
But before investors can look to the future and make predictions, a foundation has to be laid of how we got to a point where Palantir has become one of the most-influential AI stocks on the planet.
The primary catalyst fueling Palantir's outperformance is the company's sustainable moat. Specifically, its two core operating segments lack large-scale competition, which means Palantir doesn't have to concern itself with the idea of other companies siphoning away its contracts or subscriber base.
The historical breadwinner for Palantir is its AI- and machine learning-powered Gotham software-as-a-service (SaaS) platform. Gotham assists the U.S. government and its allies with data collection and analysis, as well as military mission planning and oversight. This segment typically lands four- or five-year deals with federal governments that lead to highly predictable operating cash flow and consistent double-digit sales growth. Gotham is also the reason Palantir became profitable on a recurring basis well ahead of consensus expectations among Wall Street analysts.
The other core SaaS operating segment is Foundry, which caters to businesses. This is a subscription-based service that helps its enterprise clients make sense of their big data to improve supply chains and automate certain operations, to name a small snippet of this platform's uses.
Palantir is one of Wall Street's best examples of AI applications transforming and enhancing the capabilities of cloud-based software. But even with an eye-popping growth forecast and a knack for surpassing analyst EPS expectations, Palantir is likely sledding uphill as it prepares to unveil its third-quarter operating results.
Wall Street's AI darling has a nearly impossible task of impressing investors on Nov. 3
Palantir's biggest challenge boils down to one word: history.
History tells us that every game-changing innovation and hyped technology dating back more than three decades has navigated its way through an eventual bubble in the early stages of its expansion. Without exception, investors have consistently overestimated the adoption rate and early innings utility of next-big-thing trends, which leads to lofty expectations not being met. When next-big-thing bubbles burst, the companies on the leading edge of these trends often taken the brunt of the punishment.
The one thing Palantir has working in its favor is the relative predictability of its operating cash flow. Multiyear government contracts and a subscription-driven platform with Foundry would likely protect it from a revenue cliff in the event of an AI bubble-bursting event. But this doesn't mean Palantir's stock would be out of the woods.
Perhaps the bigger historical hurdle is Palantir's stratospheric valuation.
Prior to the bursting of the dot-com bubble, some of the most-influential internet businesses peaked at price-to-sales (P/S) ratios ranging from 30 to 40, with a little bit of wiggle room at the top end. Companies like Cisco Systems, Amazon, and Microsoft were unable to sustain P/S ratios this high over an extended period.
Keeping in mind that no megacap company has ever been able to maintain a P/S ratio above 30, Palantir Technologies closed out Oct. 24 with a P/S ratio approaching 136! There isn't a revenue or EPS guide imaginable that can satiate the optimism to support a P/S ratio of 136. It would take multiple years of 40%-plus ongoing sales growth just to get Palantir stock down to the P/S ratio range of 30 to 40 that prior bubbles have topped out at.
To make things more complicated, the federal government shutdown has extended well beyond three weeks, as of this writing. Palantir has historically been reliant on Gotham to do its heavy lifting and provide the lion's share of its operating income. The shutdown is stalling new deal potential in the near-term.
When a stock is priced for perfection, Wall Street and investors will expect nothing less. The problem is, even the best companies trip up or slow down from time to time. Palantir's astronomical valuation has its stock set up for disappointment come Nov. 3.
Should you invest $1,000 in Palantir Technologies right now?
Before you buy stock in Palantir Technologies, 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 Palantir Technologies 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 $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 27, 2025
Sean Williams has positions in Amazon. The Motley Fool has positions in and recommends Amazon, Cisco Systems, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. 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.

Prediction: Artificial Intelligence (AI) Powerhouse Palantir Technologies Will Disappoint Wall Street on Nov. 3

Key Points
Meta Platforms' social media platforms provide the company with a treasure trove of data.
The company uses artificial intelligence (AI) to ensure its ads hit their mark.
The stock is attractively priced, particularly in light of its track record of growth.
The engine that drives the U.S. economy has changed dramatically over the past two decades. Case in point: Energy bellwether ExxonMobil and industrial stalwart General Electric were the two largest publicly traded companies by market cap in 2005, with values of $375 billion and $362 billion, respectively. Now, just 20 years later, technology companies at the forefront of artificial intelligence (AI) top the charts.
Only four companies have joined the ultra-exclusive $3 trillion club, and the names are immediately recognizable. Chipmaker Nvidia leads the list at $4.4 trillion (as of this writing), within striking distance of a new all-time high. iPhone maker Apple recently soared into second place at $3.9 trillion. Cloud and software provider Microsoft is right on Apple's heels, worth $3.8 trillion. Search pioneer Alphabet wraps up our quartet at $3 trillion.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
With a market cap of $1.8 trillion, it might seem premature to suggest tech titan Meta Platforms (NASDAQ: META) is destined for membership in the $3 trillion club, but the evidence is clear. If this comes to pass, investors who buy shares today could pocket returns of 67% if Meta crosses the $3 trillion mark. Here's why I believe the writing is on the wall.
A captive audience
Meta is the parent company behind several of the world's most popular social media platforms, including Facebook, Instagram, and WhatsApp. To stake its claim in the AI revolution, Meta tapped the information it compiles from the nearly 3.5 billion users who visit one of its platforms every day. This data helped the company develop its suite of Llama large language models (LLMs), which are among the most competitive in the industry. This positions Meta to profit from the tidal wave of AI adoption.
The company benefits from its foray into AI in other ways. Meta has long used machine learning -- an earlier branch of AI -- to surface relevant content for users and direct its targeted advertising. The development of generative AI only increased Meta's advantage, as the company curated AI-powered tools to help advertisers succeed.
The results tell the tale. In the second quarter, Meta generated revenue of $47.5 billion, which climbed 22% year over year, resulting in diluted earnings per share (EPS) of $7.14, which jumped 38%.
Commentary from CEO Mark Zuckerberg shed light on the results. He noted that AI is "unlocking greater efficiency and gains across our ads system ... [driving] roughly 5% more ad conversions on Instagram and 3% on Facebook." There's more. The company's content strategy is bearing fruit as users spent 5% more time on Facebook and 6% more on Instagram. More time translates to more advertising, which ultimately increases revenue.
The company's ever-expanding user base and increasing ad conversions position Meta for continued success.
The path to $3 trillion
Meta has a market cap of roughly $1.8 trillion (as of this writing), so it will take a stock price increase of roughly 66% to propel its value to $3 trillion. Wall Street's estimates that Meta will generate revenue of $196 billion in 2025, giving the stock a forward price-to-sales (P/S) ratio of 9. Assuming its P/S remains constant, Meta will need to generate revenue of roughly $327 billion annually to support a $3 trillion market cap.
Furthermore, Wall Street is currently forecasting Meta's revenue growth at nearly 15% annually over the next five years. If the company can achieve this benchmark, it could surpass a $3 trillion market cap as soon as 2029. Those projections might well be conservative, as Meta has grown its trailing-12-month revenue by more than 897% over the past decade.
Finally, at less than 27 times trailing-12-month earnings, Meta's valuation is cheaper than the multiple of 31 for the S&P 500 -- yet has increased by 656% over the past 10 years, well ahead of the S&P 500, which gained just 232%.
Should you invest $1,000 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 $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 27, 2025
Danny Vena has positions in Alphabet, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends GE Aerospace and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. 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.

Prediction: This Unstoppable Stock Will Join Nvidia, Apple, Microsoft, and Alphabet in the $3 Trillion Club Before 2029

Key Points
Sold 79,802 shares of Marsh & McLennan Companies; estimated trade value ~$16.41 million
The sale represents 2.23% of CADINHA & CO LLC’s 13F reportable AUM as of Q3 2025.
Post-trade position: 2,925 shares valued at $589,475 as of September 30, 2025
The position now represents 0.08% of AUM, placing it outside the fund’s top five holdings
Image source: Getty Images
CADINHA & CO LLC reduced its stake in Marsh & McLennan Companies (NYSE:MMC), selling shares worth an estimated $16.41 million based on the average price for Q3 2025, according to an SEC filing dated October 16, 2025.
What happened
According to a filing with the U.S. Securities and Exchange Commission on October 16, 2025, CADINHA & CO LLC sold 79,802 shares of Marsh & McLennan Companies during the quarter. The estimated value of the shares sold was $16.41 million, calculated using the period’s average unadjusted closing price. The fund held 2,925 shares of Marsh & McLennan Companies at quarter-end.
What else to know
The sale reduced Marsh & McLennan Companies’ weight in the portfolio to 0.08% of 13F AUM, outside the fund’s top five holdings.
Top holdings after the filing:
BRK-B: $38.86 million (5.28% of AUM) as of September 30, 2025
IAU: $38.47 million (5.2% of AUM) as of September 30, 2025
COST: $35.68 million (4.8% of AUM) as of September 30, 2025
MSFT: $35.17 million (4.8% of AUM) as of September 30, 2025
GOOGL: $34.87 million (4.7% of AUM) as of September 30, 2025
As of October 16, 2025, shares of Marsh & McLennan Companies were priced at $186.48, down 18.18% over the past year, underperforming the S&P 500 by 30.19 percentage points over the past year.
Company Overview
Revenue (TTM)
$26.45 billion
Net Income (TTM)
$4.13 billion
Dividend Yield
1.82%
Price (as of market close 2025-10-16)
$186.48
Company Snapshot
Marsh & McLennan Companies, Inc. is a global leader in professional services, specializing in risk, insurance, and consulting solutions. With a diversified business model, the company leverages its scale and expertise to deliver value-added services to a broad base of institutional and corporate clients. Its competitive advantage is rooted in its longstanding industry presence and comprehensive suite of advisory offerings.
The company generates revenue primarily through service fees, commissions from insurance broking, and consulting engagements for corporate and institutional clients.
Marsh & McLennan Companies, Inc. serves businesses, public entities, insurance companies, associations, and professional services organizations worldwide.
Foolish take
CADINHA & CO's recent sale of Marsh & McLennan stock reflects a broader trend of investors growing cautious and consulting firms as market conditions shift. For Marsh & McLennan, though, rising uncertainties are not a setback. It is the foundation of its business, and the company continues to find ways to turn that uncertainty into opportunity.
Marsh & McLennan's product offering isn't focused directly on selling insurance, and it is more heavily centered on its consulting services. The firm earns fees and commissions for placing coverage, arranging reinsurance, and advising on strategy and risk management.
Its portfolio is broader than many realize. Through its Marsh brokerage arm and Guy Carpenter reinsurance division, the company connects clients to insurance capacity worldwide, while Mercer and Oliver Wyman extend the relationship into workforce and strategy consulting. Each division reinforces the other and creates a self-sustaining loop of data and advisory demand that strengthens the company's moat.
For long-term investors, the lens is simple. As cyber threats and climate shocks grow more prevalent, more companies need help measuring exposure and negotiating protection. That type of work relies heavily on data, credibility, and global reach. Those are all strengths that have made the firm a trusted leader for decades. Marsh & McLennan's expertise will only become more valuable in a world where global risk grows more complex and becomes a permanent feature of the global economy.
Glossary
13F reportable AUM: Assets under management reported by institutional investment managers on SEC Form 13F, typically covering U.S. equity holdings.
AUM (Assets Under Management): The total market value of investments managed on behalf of clients by a fund or firm.
Quarter-end: The last day of a financial quarter, used as a reference point for reporting holdings and performance.
Portfolio weight: The percentage of a portfolio's total value allocated to a specific investment or holding.
Top holdings: The largest investments in a portfolio, usually ranked by market value or portfolio weight.
Reinsurance broking: The service of arranging insurance for insurance companies, helping them transfer risk to other insurers.
Consulting engagements: Professional advisory projects where firms provide expertise and recommendations to clients for a fee.
Institutional clients: Organizations such as corporations, pension funds, or governments that invest large sums, as opposed to individual investors.
Service fees: Charges paid by clients for professional services, separate from commissions or product sales.
TTM: The 12-month period ending with the most recent quarterly report.
Where to invest $1,000 right now
When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor’s total average return is 1,033%* — a market-crushing outperformance compared to 193% for the S&P 500.
They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor.
*Stock Advisor returns as of October 27, 2025
Eric Trie has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Costco Wholesale, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. 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.

Marsh & McLennan Turns Global Risk Into Long-Term Growth

Key Points
Microsoft is a balanced buy for growth investors, even in today's premium-priced market.
With exposure to AI, cloud, software, gaming, consumer electronics, and more, Microsoft offers a catch-all way to bet on multiple themes.
Microsoft doesn't need to grow earnings at a breakneck rate to be a winning investment.
2025 is shaping up to be the third consecutive year where the simplest way to produce market-beating returns is through megacap growth stocks -- especially those with exposure to artificial intelligence (AI).
But the stock market cares more about where companies are headed than where they have been. And many investors are probably wondering how long the AI rally can last and if tech stocks have run up too far, and too fast.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Instead of chasing high-flying, unproven names, a better approach could be to turn to industry-leading companies like Dow Jones Industrial Average component Microsoft (NASDAQ: MSFT). Microsoft is up 21.9% year to date at the time of this writing compared to an 8.6% gain for the Dow. It has beaten the index over the last three-, five-, and 10-year periods.
With 16 consecutive years of dividend raises and plenty of levers to pull to reward shareholders, here's why Microsoft has what it takes to continue outperforming the Dow and the S&P 500 for years to come.
An earnings-driven stock
A common investing mistake is assuming that a soaring stock is overvalued just because the price has run up over a short period. But stocks aren't commodities, like a gallon of gas, where a lower price is always better for the consumer. Rather, they are dynamic assets because they represent a piece of ownership in something that is always changing.
Therefore, a better way to look at stock prices and valuation is by examining the relationship between financial results and expectations.
When great companies are inexpensive, the results can be decent and still fetch a favorable reaction. But when a stock is expensive, the results and forecast have to be excellent to justify further market-beating returns.
Over the last decade, Microsoft's stock price has soared 826%, but its diluted earnings per share are also up 847%. The stock price is following earnings growth, not going up based on hype alone.
Microsoft is leveraging AI to expand its operating margin -- allowing it to grow earnings faster than sales. That's an incredible accomplishment considering Microsoft's diversification. Too often, companies will expand outward at the expense of efficiency. But not Microsoft. It is a rare example of a tech company that has continued to innovate, tap into new markets, and make savvy acquisitions.
Microsoft is a good value
With the Nasdaq Composite up 110% in the last three years, investors won't find a lot of dirt cheap high-quality growth stocks hiding in plain sight. When buying stocks near all-time highs, the best approach is to accept that the price may be high, but it could still be worth it in the long run if the underlying business is sound.
In fiscal 2025, which ended June 30, 2025, Microsoft grew revenue by 15%, net income and diluted earnings per share by 16%, and operating income by 17%. At 33 times forward earnings, Microsoft is a good value because its results are solid and they are repeatable. In other words, Microsoft's future results aren't based on one big idea paying off, but rather several different ideas working in concert.
In addition to the growth of the business, Microsoft returns a ton of capital to shareholders through its dividend and stock buybacks. The low dividend yield of 0.8% is more so a reflection of Microsoft's outperforming stock price than a lack of raises -- as Microsoft has increased its dividend by at least 9% per year for eight consecutive years.
A company you can count on, no matter what 2026 brings
Microsoft stands out as one of the best growth stocks to buy in 2026, especially for investors who are looking for a company they can be confident will persevere in the event of an economic or AI-specific slowdown. Its rock-solid balance sheet and globally diversified business segments should allow it to hold up relatively well during a downturn.
At the same time, Microsoft generates a ton of free cash flow that it can pour into its best ideas without taking on debt. It has the cushion needed to take risks and fail, which is especially important in the ever-changing tech sector.
All told, Microsoft makes a lot of sense for investors looking to invest in themes like AI and cloud computing without paying a price that depends on everything going right at once.
Should you invest $1,000 in Microsoft right now?
Before you buy stock in Microsoft, 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 Microsoft 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 $590,357!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,141,748!*
Now, it’s worth noting Stock Advisor’s total average return is 1,033% — a market-crushing outperformance compared to 193% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of October 27, 2025
Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. 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.

This Dividend-Paying Dow Jones Growth Stock Will Crush the S&P 500 (Again) in 2026

(RTTNews) - Australia's competition regulator has filed a lawsuit against Microsoft (MSFT), alleging the tech giant misled around 2.7 million customers into paying higher subscription fees for Microsoft 365 after integrating its Copilot AI tool.
According to the Australian Competition and Consumer Commission or ACCC, Microsoft implied that users had to upgrade to new, more expensive Personal and Family plans bundled with Copilot, while failing to clearly disclose that cheaper "classic" plans without the AI feature were still available.
Following the integration, subscription prices rose sharply; the Personal plan increased 45 percent to A$159 ($103) and the Family plan by 29 percent to A$179, the ACCC said. Customers reportedly only discovered the lower-cost option after initiating the cancellation process, which the regulator argued was deceptive and in violation of Australian consumer law.
Microsoft's communications, including customer emails and blog posts, omitted mention of the cheaper plan and simply stated that the price increases would take effect at the next renewal.
A Microsoft spokesperson said the company is reviewing the complaint in detail. The ACCC is seeking penalties, redress, injunctions, and costs from Microsoft Australia and its U.S. parent.
Under Australian law, penalties can reach A$50 million per breach, or up to 30% of a company's adjusted turnover if the benefit cannot be calculated. The final penalty will be determined by the court.
Monday, MSFT closed at $531.52, up 1.51%, and currently trades after hours at $533.09, up 0.30% on the NasdaqGS.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Australia Sues Microsoft Over Misleading AI-Linked Price Hikes For 365 Subscriptions

Monday, October 27, 2025
The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Microsoft Corp. (MSFT), Alphabet Inc. (GOOGL) and Berkshire Hathaway Inc. (BRK.B), as well as two micro-cap stocks, C&F Financial Corp. (CFFI) and Syntec Optics Holdings, Inc. (OPTX). The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.
These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.
You can see all of today’s research reports here >>>
Ahead of Wall Street
The daily 'Ahead of Wall Street' article is a must-read for all investors who would like to be ready for that day's trading action. The article comes out before the market opens, attempting to make sense of that morning's economic releases and how they will affect that day's market action. You can read this article for free on our home page and can actually sign up there to get an email notification as this article comes out each morning.
You can read today's AWS here >>> Pre-markets Pick Up Where They Left Off Last Week
Today's Featured Research Reports
Microsoft’s shares have outperformed the Zacks Computer - Software industry over the year-to-date period (+24.9% vs. +21.8%). The company capitalizes on AI business momentum and Copilot adoption alongside accelerating Azure cloud infrastructure expansion. Recently, MSFT introduced its first proprietary AI models, MAI-Voice-1 and MAI-1-preview.
Microsoft projects Azure growth of 37% for fiscal first-quarter 2026. Strong Office 365 Commercial demand has been propeling Productivity and Business Processes revenue growth. ARPU is increasing through E5 and M365 Copilot uptake across key segments. Strategic execution through expanding scale and enterprise customer growth is driving non-AI services.
Xbox revenues are benefiting from strength across third-party and first-party content offerings. The Zacks analyst expects fiscal 2026 net sales to grow 12.9% from fiscal 2025. However, elevated operating expenses and Azure investments amid intensifying cloud competition remain headwinds.
(You can read the full research report on Microsoft here >>>)
Shares of Alphabet have outperformed the Zacks Internet - Services industry over the year-to-date period (+37.7% vs. +37.1%). The company is benefiting from accelerated growth across AI infrastructure and Generative AI Solutions. Google Cloud’s annual revenue run rate is now more than $50 billion. GOOGL is advancing visual and contextual search capabilities.
The Circle to Search feature is now active on more than 300 million devices. AI Overviews reach more than 2 billion users per month and are available in above 200 countries across 40 languages. It is now driving above 10% more queries globally.
On the litigation front, per the latest ruling in the ongoing lawsuit between GOOGL and the DOJ, the former is now required to share Search data with rivals, but need not divest Chrome and Android, providing a much-needed relief. However, stiff competition in cloud computing has been concerning.
(You can read the full research report on Alphabet here >>>)
Berkshire Hathaway’s shares have outperformed the Zacks Insurance - Property and Casualty industry over the year-to-date period (+7.7% vs. +7.2%). The company is one of the largest property and casualty insurance companies with numerous diverse business activities. A strong cash position supports earnings-accretive bolt-on buyouts and is indicative of its financial flexibility.
Continued insurance business growth fuels an increase in float, drives earnings and generates maximum return on equity. The non-insurance businesses have also been doing well in the last few years. The insurer has also started increasing its investment in Japan. A sturdy capital level provides further impetus. Shares of Berkshire have outperformed the industry year to date.
However, exposure to cat losses induces earnings volatility and also affects underwriting results. Huge capital expenditure remains a headwind. Also, it remains to be seen how the behemoth fares when Greg Abel succeeds Warren Buffett as CEO of Berkshire.
(You can read the full research report on Berkshire Hathaway here >>>)
Shares of C&F Financial have outperformed the Zacks Banks - Southeast industry over the past year (+15.7% vs. +1.1%). This microcap company with market capitalization of $223.18 million offers strong earnings momentum and profitability, with Q2 2025 net income up 54% year over year to $7.8 million and ROE at 14.7%.
Loan growth remains disciplined at 10.3% annually, supported by geographic expansion and diversified credit exposure. Asset quality is sound, with minimal nonperforming loans (0.07%) and strong reserves (4.85% of loans). Capital strength (Tier 1 ratio 10%) and liquidity ($984 million) underpin dividend sustainability and valuation upside. Shares trade at 0.93X tangible book and 8X earnings.
However, rising charge-offs (2.42%) in consumer finance, high uninsured deposits (30%) and potential margin compression from rate normalization present near-term risks, alongside competition in auto lending and mortgage volatility.
(You can read the full research report on C&F Financial here >>>)
Syntec Optics’ shares have outperformed the Zacks Technology Services industry over the past year (+77.1% vs. +55.4%). This microcap company with a market capitalization of $104.48 million is strategically positioned in high-growth, high-barrier defense and aerospace markets, producing over 17,000 optics for LEO satellites and rocket fuel actuators.
Syntec Optics’ expertise in hyperspectral imaging supports advanced military surveillance, with capabilities in nanotech-enabled optics and coatings. Operating from a vertically integrated U.S. facility, Syntec offers agile, end-to-end manufacturing aligned with reshoring and national security priorities. It benefits from strong photonics sector tailwinds, including CHIPS Act incentives.
However, governance concerns loom with nine material internal control weaknesses, raising risks around financial reliability. Profitability declined in Q2 2025 amid margin pressure and reduced consumer sales, contributing to a net loss. Liquidity is tight, with high leverage, and end-market volatility. Despite a 80% one-year stock gain, valuation remains above industry peers.
(You can read the full research report on Syntec Optics here >>>)
Other noteworthy reports we are featuring today include Capital One Financial Corp. (COF), Ford Motor Co. (F) and Martin Marietta Materials, Inc. (MLM).
Mark Vickery
Senior Editor
Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>
Today's Must Read
Featured Reports
Ford (F) to Get a Boost from Pro Unit Amid Novelis Fire Impact
Per the Zacks analyst, strong Super Duty demand and software/services growth aid Ford Pro, but supply chain disruptions from the Novelis fire will weigh on the company's near-term margins.
Martin Marietta (MLM) Banks on Public Spending Amid Housing Softness
Per the Zacks analyst, Martin Marietta benefits from robust infrastructure spending, pricing gains, and its SOAR 2025 plan. However, weak residential demand amid high interest rates poses a risk.
Improving Air Traffic Aid Curtiss-Wright (CW) Amid Labor Shortage
Per the Zacks analyst, Curtiss-Wright is likely to benefit from the improving air traffic. Yet labor shortage result in delays and likely impact operating results.
TechnipFMC (FTI) to Gain from Expanding Subsea Backlog
The Zacks analyst believes that TechnipFMC's record backlog of $16 billion in the Subsea unit ensures strong revenue visibility and supports margin improvements.
WEX Gains From Sawatch Labs Acquisition Amid High Debt
Per the Zacks Analyst, the Sawatch Labs buyout supports WEX's ability to support customers through EV evaluation processes. Past buyouts and expansions elevate the debt burden.
Silicon Motion (SIMO) Rides on Healthy Demand, Robust Portfolio
Per the Zacks analyst, growing demand for memory and storage solutions in industrial, automotive, consumer and commercial verticals will likely drive Silicon Motion's top line.
Winnebago (WGO) to Gain From Motorhome Recovery Amid Weak Marine Sales
Winnebago's Motorhomes unit is set to benefit from stronger product mix and lower discounting. However, continued softness in Marine unit could clip overall near-term margins, per the Zacks analyst.
New Upgrades
Strength in Credit Card Business Supports Capital One (COF)
Per the Zacks analyst, Capital One's solid card and online banking business, along with its inorganic growth efforts will aid revenues. Its efficient capital deployments reflect a solid balance sheet.
High Rates, Deposits & Loans to Aid East West Bancorp (EWBC)
Per the Zacks analyst, relatively higher rates, robust loan pipeline and attractive deposit mix alongside a solid balance sheet position will likely support East West Bancorp's financials.
Strong MA growth and Cost Control to Aid Clover Health's (CLOV) Margin
Per the Zacks analyst, Clover Health's margin is likely to be aided by expanding Medicare Advantage market along with disciplined cost control and improved medical cost ratios.
New Downgrades
Viking Therapeutics' (VKTX) Lack of Marketed Durgs A Concern
While Viking Therapeutics' progress with its obesity drug is encouraging, the lack of a stable stream of revenues concerns the Zacks Analyst.
TreeHouse Foods' (THS) Volumes Hurt by Weak Consumption Trends
Per the Zacks analyst, soft consumption trends and slow category growth remain a concern for TreeHouse Foods. In the second quarter of 2025, the company experienced a 6.2% decline in volume and mix.
Consumer Beauty Segment Hurts Coty's (COTY) Sales Performance
Per the Zacks analyst, softness in Coty's Consumer Beauty unit continues to weigh on overall performance. Net sales fell 12% in fourth quarter, reflecting weakness in color cosmetics and body care.
Beyond Nvidia: AI's Second Wave Is Here
The AI revolution has already minted millionaires. But the stocks everyone knows about aren't likely to keep delivering the biggest profits. Little-known AI firms tackling the world's biggest problems may be more lucrative in the coming months and years.
See "2nd Wave" AI stocks now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.