As companies have been investing heavily in artificial intelligence (AI) and upgrading their infrastructure, demand for memory and storage solutions has also been soaring. As a result, Micron Technology (MU +1.45%) has been experiencing incredible demand, and its stock is up an incredible 360% over just the past 12 months. Today, its market cap is close to $530 billion, making it one of the larges...
As companies have been investing heavily in artificial intelligence (AI) and upgrading their infrastructure, demand for memory and storage solutions has also been soaring. As a result, Micron Technology (MU +1.45%) has been experiencing incredible demand, and its stock is up an incredible 360% over just the past 12 months. Today, its market cap is close to $530 billion, making it one of the largest tech companies in the world. With incredible growth prospects and AI investments not showing any signs of slowing down, is this likely to be the next tech stock to join the trillion-dollar club? Can Micron's stock double from where it is today? In essence, this is what the question comes down to. If Micron can double from its current valuation, then its market cap would be north of $1 trillion. That may seem probable given just how well its business has been doing. In its most recent fiscal year, which ended on Aug. 28, 2025, its revenue totaled $37.4 billion -- more than double the $15.5 billion it reported two years earlier. And with there being a shortage of memory and storage products, prices have been rising higher, which can lead to much more growth for the company in the future. There are, however, obstacles that could get in the stock's way. The first one is a potential slowdown in spending in the near future. While there is a shortage today, if that changes in the future, investors may adjust their expectations, and thus, the premium they're willing to pay for Micron's stock may come down. And that brings us to the next issue: its valuation. Right now, Micron trades at 44 times its trailing earnings, which is fairly high. Based on analyst estimates of future profits, its forward earnings multiple drops to just 14. However, this again comes back down to expectations and what analysts and investors are expecting, and it can change over time. For Micron's stock to continue being a hot buy, there needs to be at least the expectation that demand will continue to be st...
As of this writing, Costco Wholesale (COST 0.97%) trades at a premium valuation that can make value investors instantly look the other way. Trading at about 51 times earnings, the stock seems to be priced for perfection. With a valuation like this, the market is pricing in years of robust sales and store-count growth. But some stocks truly deserve their sky-high valuations. And Costco is one of th...
As of this writing, Costco Wholesale (COST 0.97%) trades at a premium valuation that can make value investors instantly look the other way. Trading at about 51 times earnings, the stock seems to be priced for perfection. With a valuation like this, the market is pricing in years of robust sales and store-count growth. But some stocks truly deserve their sky-high valuations. And Costco is one of them. Like clockwork, the company's latest results once again clearly demonstrated why investors are consistently willing to pay a high valuation for this stock. Here is a closer look at three reasons Costco deserves its premium valuation. 1. Robust comparable store sales For a brick-and-mortar retailer as massive as Costco, generating consistent top-line growth is no easy feat. At least it shouldn't be. But Costco makes it look easy anyway. The company routinely posts impressive comparable-store sales metrics, demonstrating that its core value proposition continues to resonate with consumers. During the fiscal second quarter, total company comparable sales increased 7.4% year over year. And when stripping out the impacts of gasoline prices and foreign exchange rates, comparable sales grew 6.7%. Showing the company's steady march of robust comparable-store sales growth, this figure was a slight acceleration from the company's adjusted comparable-store sales growth in fiscal Q1 and was not too far below its fiscal 2025 adjusted comparable sales growth of 7.6%. 2. A massive international runway While Costco is ubiquitous in the United States, its global footprint still has a long runway for expansion. The company ended the second quarter with 924 warehouses worldwide, but the vast majority of those are concentrated in North America. Costco's "Other International" segment -- which excludes the U.S. and Canada -- is arguably the most exciting growth lever for the company's physical footprint. During the second quarter, comparable sales for this segment jumped 13% and maintained a...
Key Points Comparable store sales continue to rise steadily, demonstrating the resilience of the membership model amid an uncertain macroeconomic backdrop. An expanding international footprint offers a massive, largely untapped runway for future warehouse growth. Digital initiatives are surging, adding a rapidly growing e-commerce lever to the legacy brick-and-mortar retail business. 10 stocks we ...
Key Points Comparable store sales continue to rise steadily, demonstrating the resilience of the membership model amid an uncertain macroeconomic backdrop. An expanding international footprint offers a massive, largely untapped runway for future warehouse growth. Digital initiatives are surging, adding a rapidly growing e-commerce lever to the legacy brick-and-mortar retail business. 10 stocks we like better than Costco Wholesale › As of this writing, Costco Wholesale (NASDAQ: COST) trades at a premium valuation that can make value investors instantly look the other way. Trading at about 51 times earnings, the stock seems to be priced for perfection. With a valuation like this, the market is pricing in years of robust sales and store-count growth. But some stocks truly deserve their sky-high valuations. And Costco is one of them. Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue » Like clockwork, the company's latest results once again clearly demonstrated why investors are consistently willing to pay a high valuation for this stock. Here is a closer look at three reasons Costco deserves its premium valuation. 1. Robust comparable store sales For a brick-and-mortar retailer as massive as Costco, generating consistent top-line growth is no easy feat. At least it shouldn't be. But Costco makes it look easy anyway. The company routinely posts impressive comparable-store sales metrics, demonstrating that its core value proposition continues to resonate with consumers. During the fiscal second quarter, total company comparable sales increased 7.4% year over year. And when stripping out the impacts of gasoline prices and foreign exchange rates, comparable sales grew 6.7%. Showing the company's steady march of robust comparable-store sales growth, this figure was a slight acceleration from the company's adju...
Key Points Micron's revenue has more than doubled over the past couple of years. A memory chip shortage could ensure that demand remains strong in the near term. Micron is already one of the most valuable tech companies in the world. 10 stocks we like better than Micron Technology › As companies have been investing heavily in artificial intelligence (AI) and upgrading their infrastructure, demand ...
Key Points Micron's revenue has more than doubled over the past couple of years. A memory chip shortage could ensure that demand remains strong in the near term. Micron is already one of the most valuable tech companies in the world. 10 stocks we like better than Micron Technology › As companies have been investing heavily in artificial intelligence (AI) and upgrading their infrastructure, demand for memory and storage solutions has also been soaring. As a result, Micron Technology (NASDAQ: MU) has been experiencing incredible demand, and its stock is up an incredible 360% over just the past 12 months. Today, its market cap is close to $530 billion, making it one of the largest tech companies in the world. With incredible growth prospects and AI investments not showing any signs of slowing down, is this likely to be the next tech stock to join the trillion-dollar club? Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue » Can Micron's stock double from where it is today? In essence, this is what the question comes down to. If Micron can double from its current valuation, then its market cap would be north of $1 trillion. That may seem probable given just how well its business has been doing. In its most recent fiscal year, which ended on Aug. 28, 2025, its revenue totaled $37.4 billion -- more than double the $15.5 billion it reported two years earlier. And with there being a shortage of memory and storage products, prices have been rising higher, which can lead to much more growth for the company in the future. There are, however, obstacles that could get in the stock's way. The first one is a potential slowdown in spending in the near future. While there is a shortage today, if that changes in the future, investors may adjust their expectations, and thus, the premium they're willing to pay for Micron'...
As companies have been investing heavily in artificial intelligence (AI) and upgrading their infrastructure, demand for memory and storage solutions has also been soaring. As a result, Micron Technology (NASDAQ: MU) has been experiencing incredible demand, and its stock is up an incredible 360% over just the past 12 months. Today, its market cap is close to $530 billion, making it one of the large...
As companies have been investing heavily in artificial intelligence (AI) and upgrading their infrastructure, demand for memory and storage solutions has also been soaring. As a result, Micron Technology (NASDAQ: MU) has been experiencing incredible demand, and its stock is up an incredible 360% over just the past 12 months. Today, its market cap is close to $530 billion, making it one of the largest tech companies in the world. With incredible growth prospects and AI investments not showing any signs of slowing down, is this likely to be the next tech stock to join the trillion-dollar club? Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue » Image source: Getty Images. Can Micron's stock double from where it is today? In essence, this is what the question comes down to. If Micron can double from its current valuation, then its market cap would be north of $1 trillion. That may seem probable given just how well its business has been doing. In its most recent fiscal year, which ended on Aug. 28, 2025, its revenue totaled $37.4 billion -- more than double the $15.5 billion it reported two years earlier. And with there being a shortage of memory and storage products, prices have been rising higher, which can lead to much more growth for the company in the future. There are, however, obstacles that could get in the stock's way. The first one is a potential slowdown in spending in the near future. While there is a shortage today, if that changes in the future, investors may adjust their expectations, and thus, the premium they're willing to pay for Micron's stock may come down. And that brings us to the next issue: its valuation. Right now, Micron trades at 44 times its trailing earnings, which is fairly high. Based on analyst estimates of future profits, its forward earnings multiple drops to just 14. Howe...
An eagle is seen framed though construction fence on the Marriner S. Eccles Federal Reserve Board Building, the main offices of the Board of Governors of the Federal Reserve System on September 16, 2025 in Washington, DC, U.S. Kevin Dietsch | Getty Images News | Getty Images The Federal Reserve is still expecting to cut interest rates once this year in spite of a spike in oil prices from the Iran ...
An eagle is seen framed though construction fence on the Marriner S. Eccles Federal Reserve Board Building, the main offices of the Board of Governors of the Federal Reserve System on September 16, 2025 in Washington, DC, U.S. Kevin Dietsch | Getty Images News | Getty Images The Federal Reserve is still expecting to cut interest rates once this year in spite of a spike in oil prices from the Iran war. The central bank's so-called dot plot, which shows the anonymous expectations of the 19 individual members, showed a median estimate of 3.4% for the federal funds rate at the end of 2026, the same as what it had projected at the end of last year. The Fed kept rates unchanged on Wednesday. Markets had come into the year pricing in for two quarter-point rate cuts in 2026, according to the CME FedWatch Tool. However, that expectation has been getting pushed out in recent weeks because of data showing hotter inflation that could put the central bank on hold. The Fed's Summary of Economic Projections showed the forecast for personal consumption expenditures inflation climb to 2.7% for 2026, up from 2.4% in December. The projection for core inflation, which excludes volatile food and energy prices and is more closely watched by the Fed, also rose to 2.7% from 2.5%. However, the change in real GDP rose to 2.4% from 2.3% in December. — CNBC's Jeff Cox contributed to this report. Choose CNBC as your preferred source on Google and never miss a moment from the most trusted name in business news.
fatido/iStock via Getty Images The National Retail Federation forecasts U.S. retail sales will grow 4.4% annually in 2026 to $5.6T, supported by a new economic model that incorporates a wider range of real-time and government data to better track consumer behavior and spending trends. While the outlook suggests sales growth moderating toward longer-run historical averages, the forecast is for soli...
fatido/iStock via Getty Images The National Retail Federation forecasts U.S. retail sales will grow 4.4% annually in 2026 to $5.6T, supported by a new economic model that incorporates a wider range of real-time and government data to better track consumer behavior and spending trends. While the outlook suggests sales growth moderating toward longer-run historical averages, the forecast is for solid growth as employment, wages, and household finances continue to underpin consumer demand. "We expect that consumer resilience to continue into 2026, with household spending once again serving as a pillar of economic support," highlighted NRF President and CEO Matthew Shay. Although renewed tensions in the Middle East and the ripple effects across global markets are adding more uncertainty to the economic landscape, the NRF thinks the underlying fundamentals of the U.S. economy will support continued stability in the year ahead. Amid softening labor market conditions with muted non‑farm employment growth throughout much of the year, the unemployment rate is projected to still remain below 4.5%. The 10-year average for retail sales growth is 3.6%, excluding the pandemic period. More on the retail sector Amazon: Deep Discount Makes Me Greedy Amazon Doesn't Deserve To Trade At These Prices Inside Amazon's AI Power Play The hyperscalers are ‘too big to fail’ – analyst IKEA plans to open small-format stores in the U.S.
laddawan punna/iStock via Getty Images Commentary as of 12/31/25 The fund posted returns of 3.75% (Institutional shares)( MAGCX ) and 3.73% (Investor A shares, without sales charge)( MDGCX ) for the fourth quarter of 2025. The fund’s outperformance of its benchmark was led by strength across sentiment and macro-thematic measures, which helped to drive successful positioning around market themes. F...
laddawan punna/iStock via Getty Images Commentary as of 12/31/25 The fund posted returns of 3.75% (Institutional shares)( MAGCX ) and 3.73% (Investor A shares, without sales charge)( MDGCX ) for the fourth quarter of 2025. The fund’s outperformance of its benchmark was led by strength across sentiment and macro-thematic measures, which helped to drive successful positioning around market themes. From a sector- and country-positioning perspective, the fund remained largely neutral. It had slight overweight holdings in the information technology and financials sectors, and maintained slight underweight positions in the health care and consumer discretionary sectors. The fund had slight overweight allocations to the United States and the United Kingdom, and maintained slight underweight exposures to France and Switzerland. ★★★★ Morningstar OverallTM Institutional shares rated against 305 Us Fund Global Large-Stock Blend Funds, as of 12/31/25, based on risk-adjusted total return. Ratings are determined monthly and subject to change. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its 3-, 5- and 10-year (if applicable) Morningstar Rating metrics.†† Portfolio management Raffaele Savi, Kevin Franklin, Richard Mathieson Top 10 holdings (%) Apple ( AAPL ) 5.11 Nvidia Corporation ( NVDA ) 4.93 Microsoft ( MSFT ) 4.59 Alphabet ( GOOGL ) 3.27 Amazon.com ( AMZN ) 3.08 JPMorgan Chase ( JPM ) 1.84 Morgan Stanley ( MS ) 1.81 TSMC ( TSM ) 1.59 Pfizer ( PFE ) 1.57 Cme Group Inc ( CME ) 1.52 Click to enlarge Investment approach Invests in equity securities or other financial instruments that are components of, or have market capitalizations similar to, the securities included in the MSCI All-Country World Index. Contributors Measures with a trend-following footprint drove positive performance, led by macro-thematic insights and sentiment measures capturing company linkages across key themes. Insights designed to e...
Keir Starmer will not intervene to give the assisted dying bill further time in the next session of parliament as he is wary of opening up new divisions among Labour MPs, senior ministers believe. The bill, which was passed by the Commons, is now certain to be blocked in the House of Lords without ever reaching a vote because of the sheer number of amendments its opponents have tabled and debated....
Keir Starmer will not intervene to give the assisted dying bill further time in the next session of parliament as he is wary of opening up new divisions among Labour MPs, senior ministers believe. The bill, which was passed by the Commons, is now certain to be blocked in the House of Lords without ever reaching a vote because of the sheer number of amendments its opponents have tabled and debated. MPs who spoke to the Guardian said they had been “radicalised” in favour of a serious overhaul of the House of Lords because of the way the bill had in effect been killed off by a handful of peers who oppose it, many former Tory MPs, including Thérèse Coffey and Mark Harper. Opponents have argued the number of amendments – more than 1,200 – has been necessary because of the bill’s flaws that could put vulnerable people at risk. It comes after the Scottish parliament voted down a similar bill on Tuesday night, by 69 votes to 57. The bill which would have given terminally ill people in England and Wales the right to end their lives is now expected to run out of time to pass on 24 April, its last scheduled day of debate before the end of this parliamentary session. The private member’s bill’s sponsors, the Labour MP Kim Leadbeater and the Labour peer Charles Falconer, have said they hope to use the Parliament Act to bypass the House of Lords in the next session of parliament. That would require Starmer to allocate some government time to the bill – or for supporters to win another slot in the private members’ bill ballot to table the bill again. Starmer is personally supportive of assisted dying, and is angry with the conduct of the House of Lords in blocking the bill. But some of the bill’s most vocal advocates in parliament have said they do not believe there is any hope of the prime minister choosing to give time to the bill – because of the divisions it would reignite within Labour. “We are in a very different place to when this bill was introduced,” one senior minister s...
May arabica coffee (KCK26) today is down by -3.10 (-1.05%), and May ICE robusta coffee (RMK26) is up +59 (+1.67%). Coffee prices are mixed today. The outlook for a bumper Brazil coffee crop is weighing on arabica prices, after StoneX raised its Brazil 2026/27 coffee production estimate to a record 75.3 million bags, up from its November estimate of 70.7 million bags. Rising ICE inventories are pre...
May arabica coffee (KCK26) today is down by -3.10 (-1.05%), and May ICE robusta coffee (RMK26) is up +59 (+1.67%). Coffee prices are mixed today. The outlook for a bumper Brazil coffee crop is weighing on arabica prices, after StoneX raised its Brazil 2026/27 coffee production estimate to a record 75.3 million bags, up from its November estimate of 70.7 million bags. Rising ICE inventories are pressuring arabica coffee prices as ICE-monitored arabica inventories rose to a 5.5-month high of 581,830 bags on Monday. Don’t Miss a Day: However, tighter ICE inventories have sparked short covering in robusta coffee, as ICE robusta inventories fell to a 2-month low today at 4,348 lots. The closure of the Strait of Hormuz has disrupted global shipping and is supportive of coffee prices. The closure of the waterway has increased global shipping rates, insurance, and fuel costs, and raises costs for coffee importers and roasters. On Monday, arabica coffee fell to a 2-week low, and May robusta fell to a contract low, as abundant rains in Brazil eased crop concerns. Somar Meteorologia reported Monday that Brazil's largest arabica coffee-growing area, Minas Gerais, received 57.7 mm of rain last week, or 139% of the historical average. Coffee prices also saw support from recent news that Brazil's Feb green coffee exports fell by -27% y/y to 2.3 million bags, according to Cecafe. Meanwhile, Brazil's Trade Ministry reported last Thursday that Brazil's Feb coffee exports fell -17.4% y/y to 142,000 MT. Coffee prices in February sold off sharply, with arabica falling to a 16-month low on February 24 and robusta tumbling to a 7.25-month low on February 23 as signs of a bumper Brazilian coffee crop supported the global supply outlook. On February 5, Conab, Brazil's crop forecasting agency, said that Brazil's 2026 coffee production will climb by +17.2% y/y to a record 66.2 million bags, with arabica production up +23.2% y/y to 44.1 million bags and robusta production up +6.3% y/y to 22.1 ...
watch now VIDEO 7:41 07:41 The Fed has to look through the spike in oil prices, says Wharton's Jeremy Siegel Squawk Box Amid geopolitical turmoil, the Federal Reserve held interest rates steady at the conclusion of its policy meeting on Wednesday. An energy shock and higher inflation expectations due to the war in Iran ruled out any possibility of an interest rate cut, analysts said. Since Decembe...
watch now VIDEO 7:41 07:41 The Fed has to look through the spike in oil prices, says Wharton's Jeremy Siegel Squawk Box Amid geopolitical turmoil, the Federal Reserve held interest rates steady at the conclusion of its policy meeting on Wednesday. An energy shock and higher inflation expectations due to the war in Iran ruled out any possibility of an interest rate cut, analysts said. Since December, the federal funds rate has remained steady in a target range of 3.5% to 3.75%. The Fed's benchmark sets what banks charge each other for overnight lending, but also has a trickle-down effect on many consumer borrowing and savings rates . For Americans struggling in the face of surging gas prices and overall affordability challenges, the central bank's decision does little to ease budgetary pressures. "Higher fuel costs, along with the downstream effects on shipping, travel and trade, are likely to add further pressure to consumer prices," said certified financial planner Stephen Kates, a financial analyst at Bankrate. "Cutting rates while inflation is rising would be difficult to justify, even if it might receive political support." Powell under pressure President Donald Trump has been after Fed Chair Jerome Powell to lower the central bank's benchmark rate, arguing that inflation has been " defeated ." "Where is the Federal Reserve Chairman, Jerome 'Too Late' Powell, today? He should be dropping Interest Rates, IMMEDIATELY, not waiting for the next meeting," Trump wrote in a Truth Social post on March 12. Powell has just one more meeting before his term at the helm ends. Before the oil shock, inflation was holding above the Fed's 2% target but not worsening. Now the surge in energy costs could have longer-term inflation implications , experts say. "If tensions in the Iran conflict ease, inflation pressures will gradually subside. Until then, the economy may have to absorb a period of higher inflation again," Kates said. Read more CNBC personal finance coverage The Fed k...
This article first appeared on GuruFocus. BP (NYSE:BP) has received U.S. approval to move ahead with its Kaskida project in the deepwater Gulf of Mexico, marking the company's first brand new field development in the region since the 2010 Deepwater Horizon disaster. The approval from the U.S. Department of the Interior comes after roughly a year long review of BP's development plan. The Kaskida fi...
This article first appeared on GuruFocus. BP (NYSE:BP) has received U.S. approval to move ahead with its Kaskida project in the deepwater Gulf of Mexico, marking the company's first brand new field development in the region since the 2010 Deepwater Horizon disaster. The approval from the U.S. Department of the Interior comes after roughly a year long review of BP's development plan. The Kaskida field is expected to begin producing oil in 2029. In its first phase, the project is projected to produce about 275 million barrels of oil equivalent from a portion of the reservoir, which is estimated to contain as much as 10B barrels beneath the seabed. Despite being discovered nearly 20 years ago, the field remained largely undeveloped because the industry lacked the technology needed to safely handle the extreme pressure and challenging geology in the area. BP said the project reflects decades of advances in offshore drilling and engineering that now make the development possible.
The Federal Reserve has been signaling for months that further interest-rate cuts were far from guaranteed. On Wednesday, that message finally fully sunk in for bond traders. US Treasuries slumped and short-term yields yields soared to their highest since August after Fed Chair Jerome Powell said central bankers needed to see progress on inflation before reducing their target rate further. “If we ...
The Federal Reserve has been signaling for months that further interest-rate cuts were far from guaranteed. On Wednesday, that message finally fully sunk in for bond traders. US Treasuries slumped and short-term yields yields soared to their highest since August after Fed Chair Jerome Powell said central bankers needed to see progress on inflation before reducing their target rate further. “If we don’t see that progress, then we won’t see the rate cut,” Powell said in remarks to reporters after central bankers left their target rate unchanged for a second meeting in a row. On paper, policymakers maintained their median projection for one rate cut this year. But it was Powell’s comments that tipped the balance for traders. Interest-rate markets now show the probability of even one reduction as essentially a coin flip — with the war in the Middle East and spike in oil only adding to a fraught debate. Declines in the $31 trillion market on lifted yields on two-year notes — most sensitive to the Fed’s policy changes — as much as 10 basis points to nearly 3.78%, the highest in seven months. The 10-year note’s yield rose as much as seven basis points to 4.27%. It’s not the first time the market has has been forced to realign in the face of Fed messaging, but the moves were sharp. Powell in his comments noted that as a group, there was “meaningful” movement towards fewer cuts, and confirmed that some talk surfaced, as it did in January, about the possibility of the next move being a rate hike. “If you look at the progression of the language over the last six months, the conviction on rate cuts has gone towards a conviction of maybe a rate cut, to we could be talking about a hike,” said Robert Tipp , head of global bonds and chief investment strategist at PGIM. Just three weeks ago, traders were leaning toward three Fed rate cuts this year as jitters swept financial markets over potential disruption from artificial intelligence and cracks in the private credit market. That ...
This article first appeared on GuruFocus. Microsoft (MSFT, Financials) is thinking of suing Amazon and OpenAI over a $50 billion deal that might disrupt its cloud cooperation with the AI business. The argument is about Microsoft's present relationship with OpenAI, which is closely tied to its Azure cloud platform. A new partnership with Amazon might make that exclusivity less solid and disrupt how...
This article first appeared on GuruFocus. Microsoft (MSFT, Financials) is thinking of suing Amazon and OpenAI over a $50 billion deal that might disrupt its cloud cooperation with the AI business. The argument is about Microsoft's present relationship with OpenAI, which is closely tied to its Azure cloud platform. A new partnership with Amazon might make that exclusivity less solid and disrupt how the AI infrastructure market works. Microsoft has invested a lot of money in OpenAI and utilized its models in many of its cloud services and products. Working together is a significant part of Microsoft's ambition for AI. People could worry about access, costs, and long-term positioning if OpenAI collaborates with more cloud providers. Amazon's cloud business is getting more AI products, which makes it more competitive with Microsoft in the business and developer markets. The reported arrangement illustrates that companies are searching for more AI infrastructure and partnerships as they utilize AI more. This circumstance shows that big IT companies are competing more and more to be the best in AI and cloud computing. The next thing that will happen will depend on whether Microsoft goes to court and how the conditions of the agreement change.
War with Iran may slow the pace of dealmaking but it’s unlikely to dent overall M&A activity, according to Lazard Inc. ’s global head of mergers and acquisitions. “The key question for the Iran conflict is the duration — how long will it last,” Mark McMaster said, adding that investors are watching oil prices, inflation and potential supply-chain disruptions. A short-lived conflict would likely al...
War with Iran may slow the pace of dealmaking but it’s unlikely to dent overall M&A activity, according to Lazard Inc. ’s global head of mergers and acquisitions. “The key question for the Iran conflict is the duration — how long will it last,” Mark McMaster said, adding that investors are watching oil prices, inflation and potential supply-chain disruptions. A short-lived conflict would likely allow dealmaking to proceed with limited interruption, he said Wednesday in a Bloomberg TV interview. Beyond geopolitical uncertainty, McMaster pointed to several trends supporting dealmaking. Large corporate buyers remain active, with deals of more than $10 billion up about 120% from this point last year and now accounting for roughly 30% of the market — a shift he expects to continue. At the same time, midsize companies are streamlining their portfolios, shedding slower-growing businesses and focusing on areas with stronger long-term growth. McMaster said. Take-private deals are also continuing, particularly among smaller companies that lack scale or face operational challenges. On financing, McMaster said capital remains available across both public and private markets, though at higher costs. Companies are increasingly pursuing multiple financing options in parallel to secure the best terms. “Clients are best served to run a dual track and look at both simultaneously,” he said. Lenders are becoming more selective, with greater emphasis on underwriting standards. “Good companies will get financed and the mediocre companies will probably have more trouble getting financed,” he added McMaster highlighted persistent valuation gaps in public company deals, with buyers and sellers still struggling to agree on price in volatile markets. Leverage is likely to amplify swings in sectors such as software, he said. McMaster predicted artificial intelligence will remain a key driver of deal activity, particularly in infrastructure and AI-focused transactions. He said that while 2025 w...