#valuation

#valuation

Our Q2 outlook reflects substantial records across revenue, gross margin, EPS and free cash flow, and we anticipate our business performance to continue strengthening through fiscal 2026. Micron's technology leadership, differentiated product portfolio, and strong operational execution position us as an essential AI enabler, and we are investing to support our customers' growing need for memory and storage," he said in the Q1 FY26 press release.

Why Alphabet performed well this year Alphabet actually didn't start the year strong. However, at least two things happened that helped it reverse course. First, Alphabet posted excellent financial results. The company's work in cloud computing and artificial intelligence (AI) has been tremendously helpful. The tech leader is showing that, despite competition from AI chatbots, it remains the leader in search, while providing in-demand AI services through the cloud.

The optimism is rooted in Lowe's operational consistency. The company has beaten earnings estimates in all four of its most recent quarters, with the latest Q3 2025 report delivering $3.06 per share versus the $2.81 consensus, an 8.9% surprise. That marks eight consecutive quarterly earnings beats heading into 2026, with an average surprise of 4.1%. Revenue growth of 3.2% year-over-year also outpaces Home Depot's 2.8%.

Analysts are overwhelmingly bullish on Axon. The average Wall Street price target sits at $820, implying 38% upside. Out of 19 analysts covering the stock, 17 rate it a Buy or Strong Buy, with 2 Hold ratings and zero Sells. The optimism is grounded in strong fundamentals. Revenue grew 30.6% year over year in the most recent quarter, and analysts expect that momentum to continue.

Shares of Lululemon Athletica ( NASDAQ:LULU) jumped 7% on December 18 following news that activist investor Elliott Management built a $1 billion stake in the athleisure retailer. The move sparked a surge in retail trader enthusiasm on Reddit, with sentiment scores climbing to 72 (bullish) from neutral levels just days earlier. The Elliott news arrives as Lululemon recovers from a brutal year, with shares down 44% over the past 12 months but up 31% in the last month alone.

Among the key items I look at when I consider companies' income statements and balance sheets is how much gross and net margin they're creating. That's because these metrics are pretty solid estimations of how well a given company is operating. Indeed, at the end of the day, valuations come down to how much cash flow or earnings a given company will generate over their remaining years in operation.

It adjusts the company's holdings to the current market price of bitcoin, accounts for liquid cash and debt, and factors in share dilution. mNAV provides a clearer picture of a bitcoin treasury company's true financial position than conventional accounting standards. It has become the standard tool for evaluating corporate bitcoin strategies because it centers the analysis on bitcoin itself, rather than legacy accounting conventions that can distort value.

Block ( NYSE: XYZ) has delivered strong momentum in 2025, with shares climbing steadily as the company demonstrates improving profitability and operational leverage. The fintech platform operator behind Square and Cash App has transformed from losses just two years ago to consistent quarterly profits, with Q3 2025 earnings surging 64% year over year. With Wall Street's consensus target at $84, investors are asking whether Block can push to $100 in 2026.

Okta's quarter showed operational maturity. Revenue climbed 12% year over year, but operating cash flow surged 37% to $218 million. Free cash flow reached $211 million. The company turned a $16 million loss into $23 million in operating income. CEO Todd McKinnon highlighted "continued strength with large customers" and adoption of Okta Identity Governance and Auth0 for AI Agents. Large enterprise deals carry higher margins and stickier retention.

Analysts remain bullish on Reddit's prospects, with a consensus price target of $242. That implies modest 2% upside from current levels around $238, but the Street's optimism is grounded in explosive growth. Wall Street expects revenue to continue accelerating, driven by the platform's 116 million daily active users across 100,000+ communities. As CEO Steve Huffman noted in the recent earnings call, "Reddit provides something rare on the Internet. 444 million people come here each week for authentic conversations they can't find anywhere else."

"What's driving all of this is the awareness from CEOs and executives that this is the time to invest in AI," Jain said in an exclusive interview before the conference. "Everybody has been looking for a safe, secure, more appropriate version of ChatGPT for their employees. And we bring the capabilities that ChatGPT brings to consumers to business users, and in the context of their company."

The current dynamics playing out in the stock market are really hard to describe right now. On the one hand, there are pockets of the economy that are red-hot, with hundreds of billions of dollars flowing into high-powered growth trends like AI that are clearly propping up valuations across the board. On the other hand, the vast majority of stocks in the overall market may already be in bear market territory. That's representative of a weakening consumer, and the view that valuations may have gotten a bit too distorted in the post-pandemic era.

Revolut has overtaken Barclays in valuation after securing a $75 billion price tag in a major secondary share sale backed by Nvidia, cementing its position as Europe's most valuable private tech company and the standout success story of Britain's fintech sector. The deal - largely involving staff selling portions of their holdings - marks a dramatic jump from Revolut's $45 billion valuation last year. It now exceeds the market capitalisation of Barclays (£55.7bn / $73bn), as well as other UK banking giants including Lloyds and NatWest.

Kalshi, a prediction market that allows people to bet on future events, has raised a massive $1 billion round at a $11 billion valuation, according to a person familiar with the deal. The round comes less than two months after the seven-year-old startup announced its previous fundraise of $300 million at a $5 billion valuation. The latest round is led by the company's returning investors Sequoia and CapitalG, the person said. Other investors in Kalshi include Andreessen Horowitz, Paradigm, Anthos Capital, and Neo.