2d illustrations and photos/iStock via Getty Images Equities have been overextended and overbought for some time now. This is not unusual for bubbles. Alan Greenspan had his infamous quip around the ' irrational exurberance ' in the markets late in 1996. The market would not peak until March 2000. Once the internet boom busted, the NASDAQ would crater by 80% before the market finally bottomed in t...
2d illustrations and photos/iStock via Getty Images Equities have been overextended and overbought for some time now. This is not unusual for bubbles. Alan Greenspan had his infamous quip around the ' irrational exurberance ' in the markets late in 1996. The market would not peak until March 2000. Once the internet boom busted, the NASDAQ would crater by 80% before the market finally bottomed in the summer of 2002. The S&P 500 was off over 40%. Shiller PE Ratio (Multpl) This is why I never short equities regardless of how overvalued they become. As the saying goes, the markets can stay irrational longer than an investor can stay solvent. The dynamics of the market do feel like they are changing, however. The huge increase in capex budgets at the hyperscalers are forcing these changes as free cash flow for these companies has plunged. Bloomberg After buying back nearly $120 billion of its own stock in 2024 and 2025, Alphabet ( GOOG ) has decided to raise some $85 billion via equity issuance and private placements this week. Tellingly, Alphabet did not go to the debt markets to raise this huge amount of funding as Meta Platforms ( META ) , Oracle ( ORCL ), and Amazon ( AMZN ) have done in recent quarters. This could be a sign the credit markets are starting to choke on the surge of AI-related debt issuance. Will Slaughter Or it could just be, that Alphabet 's management ran the numbers and saw it was more prudent to do an equity raise. As I noted in an article earlier this week, there is a negative equity risk premium in the markets right now. A historical anomaly. Multpl, Dividendology, FRED The technology sector has risen more than 40% from its end of March lows even at their remains no resolution on the horizon to reopen the Strait of Hormuz. This is having cumulative impacts on the global economy and inflation. This massive rally has pumped valuations up substantially for the technology sector. Bespoke - 06/03/2026 Given these extreme valuation levels, it is littl...
panumas nikomkai/iStock via Getty Images Introduction Earlier this year, I turned bullish on Arista Networks, Inc. ( ANET ) as I upgraded the stock from a hold rating to a buy. I cited valuation contraction and strong long-term prospects despite near-term supply constraints. Since then, the stock has performed reasonably well, as there have been gains of around 17% as of this writing. The AI conne...
panumas nikomkai/iStock via Getty Images Introduction Earlier this year, I turned bullish on Arista Networks, Inc. ( ANET ) as I upgraded the stock from a hold rating to a buy. I cited valuation contraction and strong long-term prospects despite near-term supply constraints. Since then, the stock has performed reasonably well, as there have been gains of around 17% as of this writing. The AI connectivity leader reported their latest batch of earnings back in May, and today, I have decided to conduct another analysis. With Broadcom's ( AVGO ) earnings having shaken confidence in the tech sector in recent days, this is a good time for an Arista Networks update in my view. Seeking Alpha Executive Summary Below, it is shown that the opportunity for Arista Networks continues to expand, and despite clear supply constraints, top-line growth accelerated to multiyear highs. Demand is more than robust currently as purchase commitments soar. While gross margin softness is another risk that can be traced to tight supply, profitability has remained largely stable. Looking ahead, the company offered Q2 guidance above consensus and raised full-year expectations for some key metrics. As it currently stands, Arista Networks stock isn't particularly cheap, but when considering the strong likelihood that they will meet or beat growth estimates for the coming years, the stock also isn't as expensive as some may think. Overall, I believe the risk/reward continues to be favorable and have decided to reiterate my buy rating. Long-Term Opportunity Intact Arista Networks Investor Presentation We'll get into their financials in just a second, but as highlighted in my previous article and by analysts after their 2026 Q1 results, supply constraints are having material impacts on their near-term growth. While this is a risk to the stock's performance over the short run, I would say that the long-term opportunity for Arista Networks remains intact. As shown above , the data center Ethernet switc...
Just_Super/iStock via Getty Images Introduction Our recent focus has been on IT services companies trading at depressed valuations but showing signs of a turnaround. Unisys ( UIS ) fits that profile, we think. We have tracked the company through Q1 results in May and the recent Investor Day and view the equity case as two-sided. On one hand, the last three years have been a real operational turnar...
Just_Super/iStock via Getty Images Introduction Our recent focus has been on IT services companies trading at depressed valuations but showing signs of a turnaround. Unisys ( UIS ) fits that profile, we think. We have tracked the company through Q1 results in May and the recent Investor Day and view the equity case as two-sided. On one hand, the last three years have been a real operational turnaround for the company. As per the Q1 earnings slide , GAAP operating margin tripled in Q1 to 3.7%. ClearPath (L&S) keeps surprising at 61% gross margin. Pension deficit shrunk by roughly $300M over the past year. On the other hand, the 10.625% coupon on the 2031 senior secured notes eats roughly $70M of annual interest before equity holders see any benefit. Constant currency revenue is still expected to decline 3.5%-5.0% in 2026, according to the Investor Day update. And the path to sustained positive GAAP free cash flow is the bigger challenge. This article will walk through Investor Day takeaways, the revised 2026 guidance, the 2029 framework, valuation, and the catalysts we are watching for an upgrade. 2026 Guidance Revised Higher Across The Board The first signal from the Investor Day was a meaningful revision of the 2026 outlook. Constant currency revenue growth guidance tightened to (5.0%) to (3.5%) from the prior (6.5%) to (4.5%) range. Improvement is coming from two places. First, Technology Solutions & Services segment is now expected to decline 4.0%-6.0% on constant currency vs. the previous 4.5%-7.0%. Second, ClearPath revenue was lifted to roughly $425M from $415M. FY2026 Guidance Update (Unisys Investor Day) Non-GAAP operating profit margin was reaffirmed at 9.0%-11.0%. Free cash flow at approximately negative $25M. Capex at ~$85M. Pension and postretirement contributions at ~$102M. As a result, Unisys is on track to deliver operating metrics that narrow the gap between pre-pension FCF and reported FCF over the next 18 months. What is more meaningful, in our opi...
spawns/iStock via Getty Images Strong Jobs Report Nudges the Fed Closer to a Hike Another month of very strong jobs report in the US: nonfarm payroll rose 172,000 in May, blowing past analysts’ expectations of 88,000. The three-month average is now 188,000 - exceptional given that not long ago the talk was about a “breakeven” rate (the job additions needed to hold unemployment steady) close to zer...
spawns/iStock via Getty Images Strong Jobs Report Nudges the Fed Closer to a Hike Another month of very strong jobs report in the US: nonfarm payroll rose 172,000 in May, blowing past analysts’ expectations of 88,000. The three-month average is now 188,000 - exceptional given that not long ago the talk was about a “breakeven” rate (the job additions needed to hold unemployment steady) close to zero, if not negative. Together with an unemployment rate of 4.3% (down from 4.33% in April to 4.30%), the US labor market is unmistakably reaccelerating. Still, it was a surprise that Beth Hammack, president of the Cleveland Fed, posted on LinkedIn hours after the release that “today’s jobs report reaffirms that the labor market appears to be roughly in balance” and that she “believe[s] persistently high inflation is the bigger concern.” If recent inflationary trends continue, “it may soon be appropriate to act,” she concluded. This is a hawkish call, and she made sure to put it out on the last day before the FOMC’s pre-meeting blackout . Hammack was one of three FOMC members - along with Neel Kashkari (Minneapolis) and Lorie Logan (Dallas) - to dissent at the last FOMC meeting on the grounds that the statement contained an “easing bias.” Given this last-day post, it would not be surprising to see the same three dissent again on June 17, but this time on the lack of a “hiking bias.” Are these the forward guidance you are looking for? One reason it may not, though, is Warsh’s stated intention to end forward guidance. As we’ve discussed before , the definition of forward guidance varies depending on who is using it and when. A neutral statement, for instance, can itself be a form of guidance - signaling that rates will remain unchanged near-term. This brings us to a Yahoo Finance interview with New York Fed president John Williams earlier this week. When asked about the easing bias in the last FOMC statement, he agreed that the Fed should drop language signaling that its next m...
On June 4, 2026, Pranav Gokhale, Chief Technology Officer of Infleqtion (NYSE:INFQ) , reported the direct sale of 120,000 shares of Common Stock in an open-market transaction, as disclosed in the SEC Form 4 filing . Transaction value based on SEC Form 4 weighted average purchase price ($17.73); post-transaction holding value based on June 4, 2026 market close ($16.95). Infleqtion operates at the f...
On June 4, 2026, Pranav Gokhale, Chief Technology Officer of Infleqtion (NYSE:INFQ) , reported the direct sale of 120,000 shares of Common Stock in an open-market transaction, as disclosed in the SEC Form 4 filing . Transaction value based on SEC Form 4 weighted average purchase price ($17.73); post-transaction holding value based on June 4, 2026 market close ($16.95). Infleqtion operates at the forefront of quantum technology, leveraging proprietary neutral atom platforms to address high-value computing and sensing challenges. Continue reading
Eight months ago, on Oct. 10, a flash crash erased $19 billion in leveraged crypto positions in a single afternoon. Bitcoin dropped from its $126,000 peak to $105,000, dragging Ethereum , Solana , and XRP down with it. None of those coins, nor most others, have recovered, and the crypto sector has been in a bear market ever since. Crypto bear markets have historically lasted 10 to 14 months. This ...
Eight months ago, on Oct. 10, a flash crash erased $19 billion in leveraged crypto positions in a single afternoon. Bitcoin dropped from its $126,000 peak to $105,000, dragging Ethereum , Solana , and XRP down with it. None of those coins, nor most others, have recovered, and the crypto sector has been in a bear market ever since. Crypto bear markets have historically lasted 10 to 14 months. This one is eight months in. While most investors have written the sector off, a handful of assets are already making moves that deserve attention. That means the next big move in the crypto market might be a powerful rally -- and for everyone who wrote crypto off for good, that could be quite shocking, so let's take a look at what could happen and which assets are likely to be leading the charge. Image source: Getty Images. Continue reading
Government department says man was in the water around Michaelmas Island, near Albany, when he was bitten by a suspected 4.5-metre shark Get our breaking news email , free app or daily news podcast A male diver aged in his 30s has died after being bitten by a shark in Western Australia. The state’s police force confirmed on Saturday afternoon that the 35-year-old man had died, after being treated ...
Government department says man was in the water around Michaelmas Island, near Albany, when he was bitten by a suspected 4.5-metre shark Get our breaking news email , free app or daily news podcast A male diver aged in his 30s has died after being bitten by a shark in Western Australia. The state’s police force confirmed on Saturday afternoon that the 35-year-old man had died, after being treated by paramedics at the scene for more than two hours. Continue reading...
Sky-Blue Creative/iStock via Getty Images Investment Thesis In my last article about Credo Technology ( CRDO ), I had a debate about whether Credo is a one-product story (AEC) or an emerging connective platform. Seeking Alpha The market believes that Credo is an AI connectivity platform, given that its stock price has risen over 100% since then. I noted in my previous article that: Credo needs to ...
Sky-Blue Creative/iStock via Getty Images Investment Thesis In my last article about Credo Technology ( CRDO ), I had a debate about whether Credo is a one-product story (AEC) or an emerging connective platform. Seeking Alpha The market believes that Credo is an AI connectivity platform, given that its stock price has risen over 100% since then. I noted in my previous article that: Credo needs to prove that it can expand its product portfolio in order for investors to value the company with higher multiples,” And the answer came from Q4’26 results . In the present coverage, I analyze that CRDO has expanded its product portfolio and, even more significantly, anticipates its first revenue from optical products within FY2027. The real stock performance driver is not the company’s revenue growth but its guidance, in my view, which opens a new market and could diversify the company’s revenue streams. Credo Mainly Still is AEC Provider, but Will Be Connectivity Platform Soon Q4’26 Recap CRDO continues to deliver impressive revenue growth, with 157% YoY in Q4’26, following over 200% YoY growth in the previous quarter. Gross margin remains at a high level, reaching 68.3% in Q4, almost the same compared to Q3 at 68.6%. Q3’26 News Release Moreover, the operating margin was almost 50%, and the net margin was about 52%. Both margins are at very high levels and indicate its fabless, profitable business model — fabless means that Credo only designs its products, and the manufacturing takes place at third-party companies, mainly Taiwan Semiconductor Manufacturing Company ( TSM ). Notably, the company had $1.4B in cash with zero debt in Q4. In Q4, the company completed the acquisition of Dust Photonics, which will help CRDO to design and accelerate its optical products and transform it into a vertically integrated connectivity platform. What do I mean by saying connectivity platform? The company’s products aim to connect GPUs, CPUs, servers, switches, and generally AI racks within ...
Navitas Semiconductor (NVTS) is back in focus after Nvidia showcased the company’s 800 V to 6 V DC DC power delivery board at Computex 2026, alongside a fresh partnership on advanced AI data center infrastructure. See our latest analysis for Navitas Semiconductor. The latest Nvidia collaboration sits against a backdrop of sharp share price swings, with the stock down 18.23% over the past day but s...
Navitas Semiconductor (NVTS) is back in focus after Nvidia showcased the company’s 800 V to 6 V DC DC power delivery board at Computex 2026, alongside a fresh partnership on advanced AI data center infrastructure. See our latest analysis for Navitas Semiconductor. The latest Nvidia collaboration sits against a backdrop of sharp share price swings, with the stock down 18.23% over the past day but showing a 30 day share price return of 50.36% and a 1 year total shareholder return of 305.83%,...