BX

Blackstone stock has delivered a strong 3 year return, yet the current market price screens as expensive on both an intrinsic value estimate and on market multiples. The key issue for investors is that Blackstone does not currently look like a clear bargain based on these checks. Over the past 3 years, Blackstone has returned about 50.8% which means recent investors have already seen substantial gains that may limit the margin for error at today’s price. Future fee growth and cash flows from its investment platform can support the current valuation, while any slowdown in fundraising or weaker realizations may put pressure on what already looks like a premium price. On a broad set of valuation checks, Blackstone scores 2 out of 6, which suggests the stock leans expensive rather than offering an obvious discount. For investors, the debate is whether Blackstone's current share price already reflects the bulk of its expected cash flow and fee growth, or if there is still room for further upside without stretching valuation too far. Balance your view on Blackstone by scanning 45 high quality undervalued stocks, which still look attractively priced based on cash flows and balance sheet strength. The Excess Returns model estimates what Blackstone can earn over and above the return that equity investors require. For Blackstone, the inputs point to a business that is expected to earn more on its equity base than the model’s cost of capital. The model uses a Book Value of $11.27 per share and a Stable EPS of $5.39 per share, based on future return on equity estimates from 7 analysts. Against a Cost of Equity of $0.96 per share, that implies an Excess Return of $4.43 per share and an average Return on Equity of 44.94%. A Stable Book Value of $12.00 per share, based on estimates from 3 analysts, feeds into an intrinsic value estimate of $114 per share. Compared with the current share price, the Excess Returns output implies the stock is about 25.2% above this intrinsic value estimate, so Blackstone shares screen as overvalued on this method. On these Excess Returns assumptions, Blackstone stock currently looks overvalued relative to its modeled intrinsic worth. Our Excess Returns analysis suggests Blackstone may be overvalued by 25.2%. Discover 45 high quality undervalued stocks or create your own screener to find better value opportunities. Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Blackstone. The P/E ratio suits Blackstone because earnings are a central marker of how its fee based business is priced. Right now Blackstone trades on a P/E of 32.6x, which is a little below the wider Capital Markets industry average of 39.5x and slightly below the peer group average of 33.8x. On raw comparisons, that does not place the stock at a big premium to similar companies. The tailored fair P/E ratio for Blackstone is 27.3x. This reflects what investors might typically pay given its size, sector and risk profile. The gap between this fair multiple and the current 32.6x suggests the stock is priced above what this model would usually support, even if the headline industry comparison does not look extreme. On the P/E multiple, Blackstone stock screens as overvalued relative to the fair ratio implied by its fundamentals and risk profile. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives for Blackstone pick up where this valuation puzzle leaves off. They spell out the specific assumptions on growth, margins and earnings that would need to hold for Blackstone's stock to be worth materially more or less than its current price. Each one ties a fair value to a particular story about the company’s possible catalysts and risks, so you can monitor which version of events appears to be unfolding over time on the Community page. Community views on Blackstone are split between those who see resilient fee growth ahead and those who focus on execution risk in newer areas like infrastructure and data centers. Bull case: roughly fairly valued Read the full Bull Case to see why Blackstone could be undervalued Bear case: 20% overvalued Read the full Bear Case to see why Blackstone could be overvalued Do you think there's more to the story for Blackstone? Head over to our Community to see what others are saying! Blackstone screens as overvalued on both the Excess Returns intrinsic value estimate and the tailored P/E multiple, so the current price already bakes in a lot of optimism. The broader valuation checks are weak, which reinforces the idea that you are paying a premium for the story rather than a clear discount. From here, the key question is whether Blackstone can sustain strong fee growth and realizations to keep justifying that premium, or whether any slowdown in fundraising or newer investment areas causes the multiple to drift closer to the modeled fair value. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include BX. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Nvidia NVDA) stock has surged more than 7% on Thursday after the AI chip giant delivered another blockbuster quarterly report yesterday evening and, more importantly, gave Wall Street considerably more confidence that its extraordinary growth can extend well into next year. Ahead of the report, several key questions surrounded Nvidia's Q2 results: whether its Vera Rubin platform was ramping on schedule, if gross margins could remain near 75%, and how much of the massive AI infrastructure buildout Nvidia would ultimately have to finance itself. The answers were mostly encouraging, although investors still have a few risks to weigh before chasing today's rally. Image Source: Zacks Investment Research Nvidia posted Q2 revenue for its current fiscal 2027 of $96.22 billion, soaring 106% from $46.74 billion in the prior year quarter and comfortably topping estimates of $91.79 billion. Adjusted net income came in at $53.95 billion, or earnings of $2.22 per share, up 120% year over year and beating Q2 EPS expectations of $2.09 by 6%. Data Center sales were the standout once again, jumping 117% to a record $89 billion. Image Source: Zacks Investment Research Even more impressive was Nvidia’s outlook. The chip giant expects Q3 revenue of $108 billion, plus or minus 2%, with no Data Center compute sales from China included in that forecast. Management also offered a preliminary expectation for roughly 70% revenue growth in fiscal 2028, despite anticipating that supply will remain constrained through the end of that reporting year. That longer-term outlook arguably provided the biggest catalyst for today's rally, as Wall Street had been bracing for a much steeper slowdown in Nvidia's growth rate. To that point, its Q3 revenue forecast came in above analyst consensus estimates of $102 billion (Current Qtr below), while the FY28 preliminary revenue forecast is well ahead of Zacks current projections of $553.24 billion or 42% growth. Image Source: Zacks Investment Research The Vera Rubin ramp also provided the confirmation investors were looking for. Production shipments began earlier this month, and Nvidia says it has already received purchase orders from every major hyperscaler, AI cloud provider, and system original equipment manufacturer (OEM). Management expects Vera Rubin to account for roughly 20% of Data Center revenue in Q3 and believes it could become the fastest product ramp in Nvidia's history. This suggests Nvidia is transitioning from its Blackwell platform to its next-generation AI architecture without the growth pause investors might normally expect during a major product cycle. Profitability remains exceptional, but this was one area where the report was less reassuring. Nvidia maintained a 75% gross margin in Q2, but management expects it to slip to roughly 74% in Q3 and bottom between 71% and 72% in Q4 as surging memory prices increase system costs. Nvidia expects margins to settle around 72%-73% in FY28, with planned price increases beginning to provide some relief early next year. Considering Nvidia's staggering revenue growth, these margins remain enviable. Still, investors should no longer assume that mid-70% gross margins are guaranteed as increasingly complex AI systems push component costs higher. Over the trailing twelve months (TTM), Nvidia’s 74% gross margin has impressively outpaced the S&P 500’s 53% average and has topped its Zacks Semiconductor-General Industry average of 72% Image Source: Zacks Investment Research Nvidia's balance sheet remains formidable. The company finished Q2 with roughly $99 billion in cash and marketable debt and equity securities, while generating $24.1 billion in operating cash flow during the quarter. However, Nvidia is deploying significant amounts of capital across its ecosystem. Non-marketable securities rose to more than $51 billion from $22 billion at the beginning of the fiscal year, while the company purchased $15.8 billion of equity securities during Q2 alone. Its supply and capacity commitments also surged from $119 billion last quarter to roughly $279 billion as Nvidia locks down memory and manufacturing capacity for future demand. That said, Nvidia appears to be finding ways to bring much deeper pockets into the AI buildout. Its partnerships with major investment firms Apollo Global Management APO), BlackRock BLK), Blackstone BX), Brookfield Asset Management BAM), Goldman Sachs GS) and KKR KKR) are intended to mobilize more than $500 billion of third-party capital for AI infrastructure, creating independent pools of financing for Nvidia customers. That could gradually shift more of the burden away from Nvidia's own balance sheet, although investors should continue monitoring its guarantees, strategic investments, and other commitments as the AI spending boom grows larger. Despite today's rally, Nvidia stock is still trading at just under 24X forward earnings following its impressive Q2 EPS beat. Furthermore, upward earnings estimate revisions after such a strong report and outlook could quickly make Nvidia’s valuation even more appealing. Notably, NVDA is trading near its decade-low forward P/E of 20X and at a nearly 50% discount to its 10-year median of 45X. Image Source: Zacks Investment Research And if you're wondering, NVDA’s return over the last decade is near a staggering 14,500% Image Source: Zacks Investment Research There is considerably more to like about Nvidia following Q2 earnings. The company crushed expectations, issued strong Q3 guidance, provided surprisingly bullish FY28 commentary, and offered concrete evidence that Vera Rubin is already becoming its next major revenue engine. Margin pressure and Nvidia's enormous financial commitments prevent the story from being completely risk-free, and investors don't necessarily have to chase a 7% one-day spike. Still, the rally appears fundamentally supported rather than simply driven by post-earnings enthusiasm. Most importantly, NVDA now sports a Zacks Rank #2 (Buy), reflecting a favorable earnings-estimate revision outlook. For long-term investors, Nvidia's valuation still looks surprisingly reasonable relative to its growth trajectory, making pullbacks particularly attractive and today's post-earnings rally difficult to bet against. 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 NVIDIA Corporation (NVDA) : Free Stock Analysis Report The Goldman Sachs Group, Inc. (GS) : Free Stock Analysis Report Blackstone Inc. (BX) : Free Stock Analysis Report BlackRock (BLK) : Free Stock Analysis Report KKR & Co. Inc. (KKR) : Free Stock Analysis Report Brookfield Asset Management Ltd. (BAM) : Free Stock Analysis Report Apollo Global Management Inc. (APO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

The big concern with business development companies (BDCs) in 2026 has been credit quality. Notably, several large private credit funds have limited withdrawals this year, including Blackstone's (NYSE: BX) Blackstone Private Credit fund, an industry giant. But concerns among investors may be waning, as evidenced by Barings BDC (NYSE: BBDC) issuing $350 million in debt. What does this really mean for the BDC sector? Business development companies make loans to smaller companies that don't otherwise have access to capital. The BDC is supposed to provide guidance to the companies it lends to, in addition to loans. To fund the loans, the BDC must have capital of its own. A BDC can raise its own capital by either issuing stock or taking on its own debt. Essentially, the BDC is attempting to make the difference between its cost of capital and the interest it charges on the loans it makes to other companies. Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue » The average interest rate Barings BDC charged in the second quarter was 9.4%. The debt it just issued carried an interest rate of 6.5%. BDCs can charge high rates because the companies they work with don't have more attractive options. Being able to charge such high yields isn't unusual at all. For example, Blue Owl Capital (NYSE: OBDC) had an average interest rate of 9.9% in the second quarter. Main Street Capital's (NYSE: MAIN) portfolio had an effective yield of 10.2%. Ares Capital Corporation (NASDAQ: ARCC) had an average interest rate of 10.3%. So, from a business standpoint, BDCs' ability to issue new debt is a positive. It allows the companies to continue making new loans to expand their portfolios. And Barings BDC was able to issue debt at a reasonable rate. However, there's something interesting about the Barings BDC debt issuance: it had a fixed interest rate and maturity. That's not unusual for a bond, but BDCs often use lines of credit to fund the loans they make. Barings BDC is using the proceeds from the bond issuance to pay down its lines of credit, effectively locking in a rate and maturity. This is important to note because lines of credit can be terminated by lenders, whereas bonds can't, and lines of credit often have variable rates. This move could potentially help Baring BDC avoid a credit crunch if market conditions turn against it. Such an event could be caused by its portfolio loans facing payment issues, or simply by Baring BDC's own lenders becoming more risk-averse. The risk for Baring BDC, and any other BDC that issues similar debt, is that the interest rate is locked in. BDCs often use variable rates when making loans to small companies. If rates fall, the interest they generate from their loan portfolios could be squeezed if they have material fixed-rate debt backing those loans. Of course, if rates rise, as some expect, the opposite would occur, and the yield spread would widen. But rates fluctuate over time, so the impact wouldn't be unidirectional. There are a lot of moving parts here, but the positive of this issuance is that Barings BDC was able to do it at all. There have been a couple of other BDCs that have also issued debt recently, as well. And that means that the credit worries that had been hampering BDCs may have passed. This is good news. However, don't ignore the finer details here, as they could become more meaningful in the future if the Federal Reserve makes rate changes to address elevated inflation. Before you buy stock in Barings Bdc, 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 Barings Bdc 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 $443,461!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,307,633!* Now, it’s worth noting Stock Advisor’s total average return is 973% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of August 27, 2026. Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Ares Capital and Blackstone. The Motley Fool has a disclosure policy. BDCs Are Selling Investment-Grade Bonds Again After a Frozen Quarter was originally published by The Motley Fool

It has been about a month since the last earnings report for Applied Digital Corporation (APLD). Shares have added about 8.4% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Applied Digital Corporation due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts. Applied Digital reported a loss of 39 cents per share in the fourth quarter of fiscal 2026, a deterioration from a loss of 24 cents registered in the year-ago quarter. The figure was wider than the Zacks Consensus Estimate of a loss of 18 cents by 116.67%.Revenues surged 407% year over year to $258.7 million, driven by the ramp-up of HPC tenant fit-out services at Polaris Forge 1 and continued strength in the Data Center Hosting Business. The figure beat the Zacks Consensus Estimate of $240 million by 7.79%. APLD's Segment Performance The Data Center Hosting Business generated $37.3 million in revenues, materially consistent year over year with stable operating conditions, as both Jamestown (106 MW) and Ellendale (180 MW) operated at full capacity as of May 31. The segment generated $12.5 million in operating profit during the quarter, on a reported asset base of $113.8 million, and continues to be the company's highest return on asset business.The HPC Hosting Business contributed $203 million in revenues during the quarter. This included $152.4 million from tenant fit-out services, $44.1 million related to base rent and $6.5 million related to tenant recoveries. The segment generated an operating profit of $26.2 million. The business now spans five contracted campuses totaling roughly 1.4 gigawatts of critical IT load, following three new leases signed with a single high-investment-grade hyperscaler since the prior quarter.During the quarter, the company completed the separation of its Cloud Services Business, combining it with Ekso Bionics Holdings to form ChronoScale Holdings Corporation. Applied Digital retained approximately 96% ownership. Reflecting this, the company consolidated ChronoScale revenues of $18.4 million for the quarter. The segment is excluded from the company's non-GAAP results going forward as management evaluates the Data Center Hosting and HPC Hosting businesses as its core operations. APLD's Operating Details Services cost of revenues jumped 256% year over year to $193.1 million, primarily reflecting $145.6 million associated with tenant fit-out services for the HPC Hosting Business. Data center rental and other cost of revenues came in at $25.1 million, primarily comprising depreciation and amortization on the first HPC data center at Polaris Forge 1, along with reimbursable tenant recovery expenses.Selling, general and administrative expenses surged 303% year over year to $165.3 million. The increase was driven by $116.8 million in stock-based compensation tied to accelerated vesting of employee stock awards and grant activity related to the ChronoScale separation, as well as $7.3 million in personnel expenses tied to headcount growth and $5.6 million in professional services expense.Interest expense net rose 26% year over year to $10.6 million, as a $31.9 million increase in interest expense from new debt arrangements was partially offset by a $30.5 million increase in interest income from higher balances held in interest-bearing demand deposit accounts.The company recognized a $53.3 million gain on the change in fair value of derivatives, comprising a $69.9 million increase in the value of its Babcock & Wilcox common stock warrant partially offset by a $16.7 million decrease in the fair value of derivative assets tied to preferred units. It also recorded a $4.8 million gain on the change in fair value of investments, reflecting the appreciation of its B&W common stock position. Neither gain was present in the year-ago quarter. APLD's Balance Sheet and Cash Flows As of May 31, Applied Digital held cash, cash equivalents and restricted cash of approximately $4.2 billion compared with $2.1 billion as of Feb. 28. Total debt stood at approximately $5 billion compared with $2.7 billion at the end of the third quarter of fiscal 2026, reflecting the closing of $2.15 billion of senior secured notes tied to Polaris Forge 2, along with a new revolving credit facility.Operating cash flow was positive $89.7 million for the fiscal year ended May 31, 2026, a marked improvement from cash used in operations of $115.4 million in the prior fiscal year, aided by a strong step-up in collections during the fourth quarter. APLD Offers Positive Outlook Applied Digital ended the fiscal year with roughly 1.4 gigawatts of contracted critical IT load across five AI Factory campuses, representing approximately $36 billion in total contracted lease revenue, or approximately $86 billion including renewal options. It is actively marketing another 1.7 gigawatts across multiple states, citing robust demand and rising lease rates.Management is in advanced talks to expand capacity by 100 MW and 150 MW with two existing investment-grade customers, which would lift total capacity to 1.66 gigawatts and add over $6 billion in contracted revenue at current rates. The company is also working with Base Electron to develop roughly 1.2 gigawatts of natural gas fired generation in the Dakotas to support further expansion.Applied Digital now expects to hit its $1 billion annual net operating income target roughly three years ahead of schedule, with quarterly capex guided at approximately $600 million as construction continues across its campuses. In the past month, investors have witnessed a downward trend in fresh estimates. The consensus estimate has shifted -27.5% due to these changes. Currently, Applied Digital Corporation has a nice Growth Score of B, though it is lagging a bit on the Momentum Score front with a C. However, the stock was allocated a score of F on the value side, putting it in the fifth quintile for value investors. Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Applied Digital Corporation has a Zacks Rank #4 (Sell). We expect a below average return from the stock in the next few months. Applied Digital Corporation is part of the Zacks Financial - Miscellaneous Services industry. Over the past month, Blackstone Inc. (BX), a stock from the same industry, has gained 7.1%. The company reported its results for the quarter ended June 2026 more than a month ago. Blackstone Inc. reported revenues of $3.8 billion in the last reported quarter, representing a year-over-year change of +23.7%. EPS of $1.52 for the same period compares with $1.21 a year ago. Blackstone Inc. is expected to post earnings of $1.36 per share for the current quarter, representing a year-over-year change of -10.5%. Over the last 30 days, the Zacks Consensus Estimate has changed -4%. Blackstone Inc. has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D. 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 Applied Digital Corporation (APLD) : Free Stock Analysis Report Blackstone Inc. (BX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Blue Owl Technology Finance Corp. (NYSE:OTF) priced $400 million of bonds Monday, double the $200 million it initially sought, in a tap of the 6.500% notes due 2029 it first sold in June, according to a prospectus supplement filed Monday. Blackstone Inc.‘s (NYSE:BX) BCRED did the same, raising $750 million against a roughly $500 million target. The two upsized deals were the first real test of appetite for business development company debt since the start of the third quarter, Bloomberg reported. Blue Owl Capital Inc., which manages Blue Owl Technology, sold $750 million in notes last week, as investor demand reached as much as $3.3 billion for the offering. RBC, SMBC, ING Groep NV, Mizuho Financial Group and Societe Generale SA managed Monday’s transaction for Blue Owl Technology. Read Also: Anthropic CEO Says AI Could Cure Most Human Disease in 5-10 Years — but Admits Big Promises Haven't Landed Earlier this year, Blue Owl Capital held a similar offering, raising $400 million from bond investors. The bonds were issued by Blue Owl Capital Corp. (OBDC) and are investment-grade rated notes. The bonds were yielding 6.4% and were set to mature in September 2028, according to an SEC filing. Pacific Investment Management Co. (PIMCO) acquired all of the $400 million bond offering shortly after. In April, Blackstone’s BCRED raised $850 million in an investment-grade bond deal after initially looking to raise $500 million. Business development company (BDC) equities are signaling growing investor skepticism over private credit valuations, even as BDC bonds have recovered much of their recent underperformance, a recent report from Lotfi Karoui at PIMCO noted. Investors are demanding a higher risk premium to compensate for uncertainty about the value of loans held by BDCs, which finance small and midsize private U.S. companies, he added. Earlier this month, Barings Private Credit Corp. priced a $350 million offering on Aug. 13, the second U.S. high-grade note sale by a BDC since the start of July. Photo: Shutterstock Read Also: BDC Stocks Signal Growing Doubts Over Private Credit Valuations This article Blackstone, Blue Owl Funds Upsize Bond Sales After Third-Quarter Lull in Private Credit Issuance originally appeared on Benzinga.com © 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

(Bloomberg) -- CoreWeave Inc. shares have been on a roll lately after a monthslong slump. Now, the neocloud provider’s earnings after the close Tuesday can give investors a sense of whether the rally is sustainable. Most Read from Bloomberg China Unleashes $28 Trillion Capital Markets to Challenge US in AI Nvidia Taps Wall Street for $500 Billion Funding Commitment Trump Makes Sweeping New Demands on Iran as Deal Hopes Dim Stocks Churn as Hormuz Standoff Spurs Rally in Oil: Markets Wrap Iran Shakes Up Security Team After Saying Oman Deal ‘Very Close’ The problem is, quarterly results tend to bring out the worst in the stock, which has fallen after each of the company’s last five earnings reports, according to data compiled by Bloomberg. “It almost doesn’t matter what they say on their earnings,” said Willy Lee, principal at venture firm Neostellar, which has held shares of CoreWeave since before its initial public offering. “The market’s still I think locked in on pieces of their earnings where I’m not sure if people fully understand parts of the story, and I think it’s just taken time for people to digest.” It’s been a rocky ride in the stock market for CoreWeave, which rents cloud-computing power for artificial intelligence, since going public in March 2025. The shares have been whip-lashed by the expiration of early investor lockups and shifting sentiment surrounding AI. They more than tripled in their first few months of trading, gave back a good chunk of that gain over the next few months, and have flipped between periods of steep gains and sharp losses ever since. Through it all, the stock is up 120% since the IPO and 23% this year. However it’s still down 41% from the all-time high it hit almost exactly a year ago. The latest downturn started in May after the company’s first-quarter earnings report featured a disappointing forecast that sparked concerns about slowing growth. The stock plunged 56% from a high in May to a low in July. But it has recovered almost half that loss, with a 21% jump in a single session after CoreWeave and Leidos Holdings Inc. announced they were developing AI cloud services for US defense and intelligence operations, followed by last week’s 26% gain, its best performance in over a year. After all that, the company’s earnings will offer a clearer view of where CoreWeave stands at this critical juncture. The company has been spending to build more data center capacity, and it has said that the benefits of those investments should start showing up in the second half of this year, making management’s forward guidance even more crucial than they’ve ever been. “It’s great if you can bring on capacity, but you have to make money from that,” said BNP Paribas analyst Stefan Slowinski, who has an outperform rating on the stock. “The risk is if they’re cautious on that Q3 guidance on the operating profits, then it may not answer those concerns people have. And if all of that has to come in the fourth quarter, then just like with any stock it creates risk if you’re sort of putting all of your eggs into the Q4 basket.” Wall Street expects the Livingston, New Jersey-based company to report a 111% rise in second-quarter revenue to $2.6 billion, and an adjusted net loss of $649 million compared with $131 million a year ago. Analysts have grown increasingly skeptical about this report, raising their projections for CoreWeave’s adjusted loss by 8.4% in the last month and 18% over the last three months. CoreWeave also is expected to post an adjusted operating margin of 2.9% in the second quarter. The figure will be key for investors after falling to about 1% in the first quarter. “I’m hoping that that margin was the low that we’ll see for the year, and that when they report this quarter, it’ll be up from the March trough and they guide to increases each and every quarter in margin,” said Paul Meeks of Freedom Capital Markets. “That’ll make me feel that the ding in short term property profitability is indeed behind us.” The optimism is reasonable considering the biggest AI spenders like Alphabet Inc., Meta Platforms Inc. and Microsoft Corp. are maintaining or raising their capital expenditure plans. The three companies make up roughly 80% of CoreWeave’s revenue, according to data compiled by Bloomberg. At the same time, the field is becoming increasingly competitive. Elon Musk’s SpaceX has inked a number of deals to sell AI computing power, and Meta is reportedly developing plans to do the same. Still, Wall Street remains bullish on CoreWeave due to the overwhelming demand for AI infrastructure. Of the 43 analysts tracked by Bloomberg who cover the company, 29 have buy ratings. The average price target of around $138 implies shares will climb 57% over the next 12 months. “AI infrastructure demand remains exceptionally strong and capacity largely sold out,” Citi’s Tyler Radke, who has a buy rating on the stock, wrote in an August 4 note to clients. Of course, the stock’s position — up from a recent trough but still significantly below its all-time high — also sets up a potential buying opportunity. That is, as long as CoreWeave can deliver a solid outlook that calms concerns around its return on investment and gives investors confidence that it will be able to borrow at a cheaper cost of capital and deliver profits before long. “If they can do that, then it’s kind of a self-fulfilling prophecy,” BNP Paribas’s Slowinski said. “All that has to come together to increase confidence in the company and in the business model.” Tech Chart of the Day Top Tech Stories Tencent Holdings Ltd.’s early success with WorkBuddy may give the Chinese Internet giant a chance to catch up after lagging peers in the artificial intelligence race for the past few years. Intel Corp. raised $20 billion in an upsized share sale, a third more than it was targeting when it announced the deal Monday morning. US investment giants including Apollo Global Management Inc., Blackstone Inc., BlackRock Inc. and Brookfield Asset Management are partnering with Nvidia Corp. to source $500 billion in financing for artificial intelligence infrastructure. Anthropic PBC has struck a $9.1 billion deal with Riot Platforms Inc., a Bitcoin mining company that recently began selling AI data center capacity, people familiar with the matter said, underscoring the Claude maker’s efforts to secure enough computing power to meet its customers’ demand. Apple Inc. is still planning to offer a glass-centric overhaul of the iPhone for the device’s 20th anniversary, people familiar with the matter said, countering an analyst report that the move had been canceled. Earnings Due Earnings Premarket: Earnings Postmarket: --With assistance from Subrat Patnaik and David Watkins. 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Shares of HA Sustainable Infrastructure Capital, Inc. HASI gained 2% in the after-market trading following the release of the company’s second-quarter 2026 results. Adjusted earnings of 75 cents per share surpassed the Zacks Consensus Estimate of 73 cents. The bottom line increased 25% year over year.Results primarily benefited from an increase in revenues. The portfolio activity remained solid during the quarter. However, an increase in expenses hurt the results to some extent.GAAP net income attributable to controlling stockholders was $128.6 million or 92 cents per share, up from $98.4 million or 74 cents per share in the prior-year quarter. Quarterly total revenues increased 41% year over year to $120.8 million.Interest and rental income increased 25.3% year over year to $84.5 million, driven by higher yields on investments and investment fundings, while gain on sale of assets increased significantly to $15.8 million.Management fees and retained interest income was $12.9 million, up 43% from the prior-year quarter. Origination fees and other income increased significantly to $7.6 million.Total expenses increased 5.2% year over year to $110.9 million. The rise was due to an increase in interest expenses, compensation and benefits costs, and general and administrative costs. However, in the reported quarter, the company recorded a provision benefit on receivables and retained interests in securitization trusts against a loss in the prior-year quarter. As of June 30, 2026, managed assets totaled $17.6 billion, up 20% from June 30, 2025.The total portfolio value was $8.2 billion as of June 30, 2026. In the reported quarter, the portfolio yield was 9.2%, up from 8.2% in the prior-year quarter due to the funding of higher-yielding portfolio assets. In second-quarter 2026, the company closed new transactions totaling $1.1 billion, including $975 million in transactions to be held on its balance sheet or at its co-investment structures.As of June 30, 2026, HA Sustainable’s pipeline was more than $6.5 billion. As of June 30, 2026, cash and cash equivalents were $250 million, and total liquidity was $2.2 billion, including $1.9 billion of unused capacity under the company’s revolving credit facility and commercial paper program. Total debt outstanding was $5.9 billion as of June 30, 2026. As of the same date, total assets were $8.9 billion, up from $8.2 billion as of Dec. 31, 2025. The company raised its adjusted EPS guidance for 2028 to $3.55-$3.65 from $3.50-$3.60.Management expects adjusted ROE in 2028 to be equal to or more than 17%. HA Sustainable is expected to continue to benefit from sustained high-yield investments, growing recurring income streams and ample liquidity, positioning it for durable earnings growth and portfolio expansion. However, rising expenses and funding costs, along with renewable energy policy uncertainty, could slow capital deployment, pressure margins and increase earnings volatility. HA Sustainable Infrastructure Capital, Inc. price-consensus-eps-surprise-chart | HA Sustainable Infrastructure Capital, Inc. Quote Currently, HASI carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. KKR & Co. Inc. KKR reported second-quarter 2026 adjusted net income per share of $1.63, surpassing the Zacks Consensus Estimate of $1.42. The bottom line rose from $1.18 in the prior-year quarter.KKR’s results primarily reflected impressive growth in assets under management and transaction fees for the capital markets business. However, an increase in expenses acted as a headwind.Blackstone’s BX second-quarter 2026 distributable earnings of $1.52 per share outpaced the Zacks Consensus Estimate of $1.33. The figure jumped 26% from the prior-year quarter.BX’s results benefited from a rise in AUM and higher revenues. An increase in GAAP expenses was the undermining factor. 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 HA Sustainable Infrastructure Capital, Inc. (HASI) : Free Stock Analysis Report Blackstone Inc. (BX) : Free Stock Analysis Report KKR & Co. Inc. (KKR) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Management attributed Q2 performance to disciplined execution across all three primary jurisdictions, supported by constructive rate case outcomes that derisk the long-term financial plan. The Pennsylvania rate settlement reflects a 'utility of the future' strategy, prioritizing system hardening and technology to maintain delivery rates nearly 20% below the state average. Data center demand is a primary strategic driver, with signed agreements in Pennsylvania increasing for the tenth consecutive quarter to approximately 32 gigawatts. The Invitium Energy joint venture with Blackstone is transitioning from concept to execution, with strategic land sites secured for up to 14 gigawatts of new generation. Management emphasized a 'growth pays for growth' framework, utilizing large-load tariffs to ensure new industrial customers fund necessary infrastructure without shifting costs to existing ratepayers. Operational focus in Kentucky has shifted toward addressing a probability-weighted load projection that has more than doubled since the previous regulatory filing. PPL reaffirmed its 6% to 8% annual EPS growth target through 2029, noting that compound growth is expected to track near the top end of that range. Management expects to announce one or more commercial agreements for the Invitium joint venture by year-end, which could provide earnings upside beyond the current 2030 planning horizon. The company anticipates filing a new CPCN in Kentucky by year-end for incremental generation, including pumped storage and battery resources, to meet accelerating load demand. Financial guidance for the second half of 2026 assumes stronger earnings contribution from new rates effective July 1 in Pennsylvania and September 1 in Rhode Island. The capital investment pipeline through 2032 includes a potential $10 billion to $12 billion in incremental upside from Kentucky generation and Invitium projects not yet in the base plan. A 2-year stay-out provision in Pennsylvania limits base rate increases until July 2028, though management intends to utilize the DSIC mechanism to extend this period further. The Rhode Island 'Hold Harmless' proposal aims to use deferred tax credits to offset the impact of requested base rate increases for customers. Management flagged a reconsideration request in Kentucky to address what they characterized as 'flaws' in a recent commission decision regarding investment recovery. Large-load tariffs now require 10 to 15-year contracts and 80% take-or-pay provisions to mitigate the risk of stranded assets if data center projects are canceled. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management clarified that bilateral negotiations with hyperscalers are proceeding independently of PJM's formal matchmaking process. They believe bilateral contracting will remain the predominant path for new generation development in the PJM region due to current auction price caps being below construction costs. The primary trigger for a year-end CPCN filing is the conversion of data center developer interest into firm hyperscaler contracts. Management noted that current probability-weighted projections of 3.7 gigawatts of new load already justify the need for additional resources. Management views the Governor's executive order as consistent with their existing ratepayer protection principles rather than a moratorium. They do not expect the order to slow development, as their approved tariff structure already requires large loads to pay for their own infrastructure. While CCGTs are targeted for 2031-2032, batteries and reciprocating engines could contribute to earnings as early as 2029 or 2030. Management is also evaluating fuel cells as a potential technology option depending on hyperscaler requirements.