Today's Highlights
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Micron Revenue Smashes Expectations, but Wall Street Yawns
5:27 pm
When companies beat revenue and earnings expectations as much as Micron Technologies (MU 0.61%) did in its most recent quarter, the market often heaps on praise for stellar results. Not this time, though. We’ll get into why, as well as Uber's (UBER +0.84%) deal with Rivian (RIVN +2.01%) and Alibaba's (BABA +1.75%) $100 billion in AI revenue target.
Tyler Crowe, Matt Frankel, and Jon Quast discuss:
- Micron's earnings
- Is it different this time for memory companies?
- Uber and Rivian teaming up for autonomous vehicles
- Alibaba's AI targets and investing in international AI plays
🎧 The Motley Fool Money podcast drops daily after the bell! Listen on Apple Podcasts, Spotify, or other podcast platforms—or check out the Fool's podcast feed.
Seth Jayson: "The Stock Is Meh"
4:25 pm — ACN +4.42% today
By Seth Jayson
Team Rule Breakers
Today happens to be Accenture's earnings day, and it went fine — they beat on both revenue and earnings, raised full-year guidance, and put up record new bookings of $22.1 billion. The stock is meh, which is pretty on-brand for Accenture lately. The company has been trading at a steep discount to where it was two years ago, mostly because of the DOGE thing — the federal government has been canceling consulting contracts across the industry, and Accenture has been caught in it. Meanwhile, they keep buying AI companies and reorganizing internally, which suggests management is spending its energy on the future rather than defending the past. Nothing today changes the basic picture much.
| Metric | Q2 2026 | Q2 2025 | Y/Y Change |
|---|---|---|---|
| EPS (diluted) | $2.93 | $2.82 | 4.0% |
| Revenue (billions | $18.04 | $16.66 | 8.3% |
| Operating margin | 13.8% | 13.5% | 0.3 pp |
| Free cash flow (billions) | $3.67 | $2.68 | 36.9% |
Closing Bell
4:03 pm
Oil's war-driven surge cooled as Brent slipped after touching $119, helping U.S. stocks claw back losses to near flat. The S&P 500 and Nasdaq each fell about 0.2% while the Dow pared an approximately 500-point drop. Comments from President Trump signaling no ground troop deployment eased fears of escalation. Still, disrupted flows through the Strait of Hormuz keep supply risk elevated. Treasury yields rose (10-year ~4.28%), central banks held rates but flagged potential hikes, and Micron Technology (MU 0.61%) shares dipped about 2% on profit taking after a strong run.
- Strait in focus: Shipping disruptions persist; reopening likely hinges on diplomacy, not force. A prolonged bottleneck could keep energy prices elevated.
- Rates meet oil: Higher energy costs are feeding inflation concerns, pushing yields up and raising the bar for equities despite stable policy—for now.
3M Bets on First-Responder Market
2:46 pm — MMM -2.36%
3M (MMM +2.62%) is partnering with Bain Capital to acquire Madison Fire & Rescue for $1.95 billion, forming a new fire and safety venture. 3M will contribute its Scott Safety breathing-apparatus unit, receive $700 million in cash at closing, and hold a 50.1% stake, with Bain owning the remainder.
- A Fool's take on the remix: The deal adds focus, but doesn't change the near-term growth profile. As Toby Bordelon (@TMFEpsilon) notes, "Growth is there, but it’s anemic right now… You've got to depend on that dividend and continued buybacks to get a reasonable return. Personally, I’m just not convinced the turnaround, when complete, will produce a business I am super excited about."
- Private equity joins the build: The deal, expected to close in the second half of the year, combines breathing equipment with rescue tools and fire-suppression products aimed at firefighters and industrial customers. Bain brings capital and scale, signaling confidence in steady demand from first responders and industrial safety markets.
Key Data Points
Adobe's Model Faces Pressure On Two Fronts
2:27 pm — ADBE -0.50%
Adobe (ADBE 1.49%) is under investigation by the U.K.'s Competition and Markets Authority over early cancellation fees tied to annual subscription plans. Customers canceling after 14 days may owe 50% of remaining contract value while losing access at the next billing cycle. The probe will assess whether terms are unfair or insufficiently disclosed, adding scrutiny to Adobe's subscription model. It follows a U.S. settlement with the Department of Justice, where Adobe agreed to $75 million in payments and $75 million in customer credits while denying wrongdoing. As Motley Fool Chief Investment Officer Andy Cross recently said, "Even as the company makes ever more investments into AI, and even as it's showing genuine progress, the AI sword of Damocles hangs over its head—more specifically, the head of its high-margin business model."
- Regulatory teeth sharpen: U.K. authorities can fine up to 10% of global revenue under new enforcement powers.
- Model under the microscope: Cancellation terms face scrutiny as Adobe looks to sustain growth and pricing power.
NASDAQ: ADBE
Key Data Points
Novo Nordisk Gains Another Weight Loss Win
1:30 pm — NVO -1.8%
The FDA approved a 7.2-milligram version of Novo Nordisk's (NVO 1.00%) blockbuster weight loss injection Wegovy on Thursday, which the Danish drugmaker expects to launch in April as it battles to win back market share from chief rival Eli Lilly's (LLY +2.57%) Zepbound. The higher-dose Wegovy helped patients with obesity lose an average 20.7% of their weight after 72 weeks in a phase 3 trial, a significant improvement over the standard 2.4-milligram dose that has shown around 15% weight loss on average in clinical trials. The approval is the first GLP-1 treatment cleared under the FDA's new "national priority" voucher plan launched in June that aims to cut some drug review times to one or two months.
- Market share battle intensifies: Zepbound's higher efficacy has helped it become the dominant obesity medication even though it entered the U.S. market later than Wegovy, solidifying Eli Lilly's position as the leading player in the space as Novo Nordisk seeks to close the competitive gap.
- Expanding treatment options: The Wegovy pill, approved roughly 10 weeks ago, is now estimated to be part of the daily regimen of about 400,000 Americans, demonstrating continued strong demand for oral GLP-1 options as the field of weight-loss treatment continues rapidly evolving.
Lunchtime News: Accenture's AI Tailwinds
1:10 pm — ACN +4.2%
Accenture (ACN +1.92%) reported second-quarter revenue of $18 billion, up 4% in constant currency and ahead of analyst estimates, as the consulting giant leaned further into AI. The stock is up 5% today despite being down about 20% for the year.
- AI doubling down: Accenture expects to more than double its work with key AI and data partners, including Anthropic and OpenAI. CEO Julie Sweet called AI a tailwind, saying it is helping the company win more business and take market share today while creating new growth opportunities.
- Bookings concern: New bookings rose just 1% in constant currency, to $22.1 billion, down sharply from 10% growth the previous quarter.
- Analyst chatter: Motley Fool Chief Investment Officer Andy Cross says Accenture's big clients are carrying the load, with 74 deals worth more than $100 million closed in the first half of the fiscal year, up from just 12 a year ago. But with bookings slowing and government and healthcare clients still dragging, he warns that without a meaningful acceleration, investors should expect mid-single-digit stock returns rather than a breakout rally.
Zillow Wins as Compass Drops Antitrust Suit
12:20 pm — ZG -2.8%
Zillow (Z +6.26%) (ZG +6.60%) emerged victorious as Compass (COMP +11.51%), the world's largest real estate brokerage, dropped its antitrust lawsuit that accused Zillow of illegally restricting "coming soon" home listings. The win came a day after Zillow relaxed its rules and announced Zillow Preview, a new feature that will make pre-market listings from several brokerages, including Keller Williams and ReMax, available exclusively on its platform. The move allows Zillow to reframe the debate around transparency — it maintains that private listing networks are bad for buyers — while launching a competing feature.
- The devil you know: The move also comes three weeks after Compass announced a partnership with Zillow competitor Redfin (a unit of Rocket Companies (RKT +6.31%)) to display "coming soon" listings exclusively.
- Bigger and better? The lawsuit dismissal follows a federal judge's rejection last month of Compass's request for an injunction, with the court ruling that Compass failed to show it was likely to win its antitrust claims despite accepting the assertion that Zillow commands a 66% market share in the home search space.
- Regulatory headwinds remain: Despite the victory, Zillow and Redfin face lawsuits by the U.S. Federal Trade Commission and five states accusing them of conspiring to thwart competition for online rental listings.
NASDAQ: Z
Key Data Points
Why Precious Metals Are Falling Despite the War
11:18 am -- AYAS.F -6.89%
By Yasser El-Shimy
Team Rule Breakers
How come gold and silver prices have cratered since the Iran War started? Should they not be safe haven assets at times of global uncertainty and geostrategic turmoil? There are a couple of reasons why precious metals and mining stocks, such as Aya Gold & Silver (OTC: AYAS.F), are retreating. First, there has been a big run in precious metals prices leading to this conflict, creating a buy the rumor, sell the news kind of dynamic. Second, investors understand the Fed's hands are tied now when it comes to interest rates. The Fed must raise them to ward off or at least mitigate the immense inflationary wave that is about to hit the world thanks to the rapidly rising prices of energy, fertilizers and gases. Higher rates are bullish for the USD in the short-term against gold and other precious metals.
Finally, there is speculation that Arab Gulf countries, such as the UAE, Bahrain and Qatar, may start to sell off some of their gold reserves to compensate for tens of billions of dollars in lost revenue due to the de facto closure of the Strait of Hormuz. This dumping, if true, is likely to dramatically increase gold supply in the markets.
I personally view this "correction" as an opportunity to gain exposure or boost holdings either to the asset itself or to miners, as inflation is likely to produce another upcycle in the value of precious metals. In the meantime, expect a lot of volatility in the short-term.
Today's Take: What's Your Latest Buy?
11:35 am
By Jason Moser
Team Rule Breakers
As technology advances, cybersecurity will only become more crucial. Rather than trying to pick one winner, I'm going with several leaders. I've owned Cloudflare (NET +1.75%) for years now and on February 17th I opened new positions in Palo Alto Networks (PANW +0.53%) and Zscaler (ZS +0.24%) as I grow my exposure to the space.
It seems the questions about Palo Alto's platformization strategy have been answered; it's grown revenue 17% annually over the last three years and margins are expanding. And with over 9,400 customers across more than 185 countries, Zscaler's Zero Trust Exchange platform appears to be picking up its fair share as well. I'll add to these positions over time and hope to bring CrowdStrike (CRWD +1.37%) into the mix soon.
Top of the Morning
10:05 am — AAPL -0.40%
By Sanmeet Deo
Team Rule Breakers
The prevailing narrative (and criticism) of Apple (AAPL +2.65%) regarding the AI arms race has been that it is way behind. Its Siri platform uses old technology and is no more useful than Clippy (Microsoft's (MSFT +0.60%) original office assistant) was. The company doesn't have its own flashy LLM model and has partnered with Alphabet (GOOG +1.99%) to use Gemini to power Siri.
However, it has a massive moat sitting in everyone's pocket, the iPhone and the apps on it. According to AppMagic, Apple was paid $900 million in App Store fees in 2025 from generative AI apps. While this amount is speck in Apple's massive total revenue, it provides them with the opportunity to use data on iPhones together with its own chips to craft an on-device AI strategy that is significantly capital-light compared to the massive spending by its peers.
9:00 am -- BABA -6.72% in pre-market trading
By Tim Beyers
Team Rule Breakers
Poor overall results from Alibaba Group (BABA +1.75%) may be the catalyst that pushes more companies to aggressively monetize AI efforts and raise prices. Shares are down close to 5% in pre-market trading in the U.S.
AI isn't lifting Alibaba's profitability picture, yet. Net income fell 66% on a GAAP basis and 67% on a non-GAAP basis in the quarter ended on December 31. Revenue increased just 2% over the same period. (Or 9% if including recently divested businesses.)
The Chinese e-commerce giant is in the midst of a transition that should see it become a much bigger supplier of AI agents and tools in its home markets in Asia. The cost to do is getting extreme.
Accenture Q2: Big Clients Drive Slogging Growth
10:00 am — ACN +1.20%
By Andy Cross
Motley Fool CIO
Accenture (ACN +1.92%) grew bookings 6% during Q2 but only 1% in local currencies, showing the challenges the world's largest digital consulting firm is facing. Sales increased 8% but 4% ex-dollar impact.
That headline hides some nice strength Accenture delivered across its Communications, Media, Tech, and Financial services groups that grew 13% in USD. But the boogeyman continues to be public (governments, agencies, etc) and health. That group fell 1% in local currencies.
If governments and hospital-like clients aren't spending, big players are. Through the first half of the fiscal year, Accenture has 74 deals with quarterly bookings of more than $100 million, up from 12 a year ago, or up 19%. And it is on pace to double AI and data center bookings from 2025.
Opening Bell
9:35 am
Stocks opened lower, as Brent crude surged past $116 per barrel following a coordinated wave of Iranian missile and drone attacks on critical infrastructure. The strikes targeted Qatar's Ras Laffan—the world's largest LNG facility—and refineries in Saudi Arabia and the UAE, marking a severe escalation in the three-week-old conflict. This retaliatory barrage followed a strike on Iran's own South Pars gas field, prompting President Trump to threaten a "massive" U.S. response that would "blow up" Iran's remaining energy assets. With 20% of global supply already throttled by the closure of the Strait of Hormuz, the "war premium" is rapidly pricing in a $150-per-barrel scenario that could force central banks to pivot from rate cuts back to aggressive inflation-fighting.
Uber Commits $1.25B to Rivian Robotaxi Fleet
8:15 am -- UBER +0.31%, RIVN +9.21% in pre-market trading
Uber Technologies (UBER +0.84%) is committing up to $1.25 billion to Rivian Automotive (RIVN +2.01%) to develop and deploy a massive fleet of 50,000 robotaxis by 2031. The deal centers on an autonomous version of Rivian's upcoming R2 platform, with an initial $300 million investment aimed at launching services in San Francisco and Miami by 2028. For Uber, the partnership adds a vertically integrated hardware play to its growing stable of autonomous partners, which includes Lucid Group (LCID 5.26%) and Amazon's (AMZN +0.34%) Zoox. For Rivian, the deal provides a critical capital infusion and a high-volume commercial channel for its in-house "RAP1" autonomy processor, just as it prepares to begin consumer R2 deliveries this spring.
- The Hardware Advantage: Uber CEO Dara Khosrowshahi noted that Rivian's "end-to-end control" of its software stack and U.S. manufacturing was the deciding factor in shifting from a pure software play to this heavy capital commitment.
- Cash Infusion Catalyst: Following a $5.8 billion deal with Volkswagen, this new investment further de-risks Rivian's balance sheet as it scales production at its high-stakes Illinois facility.
NYSE: UBER
Key Data Points
Five Below's Hot Streak Shows No Signs of Slowing
8:00 am -- FIVE +6.37% in pre-market trading
By Rick Munarriz
Team Rule Breakers
Work in Wednesday night's after-hours pop, and Five Below (FIVE +4.98%) has now tripled over the past year. Q4 strengthened even beyond the initial two-month peak provided in January. Revenue rose 24% as an 8% increase in stores was turbocharged with a 15.4% pop in comps. Adjusted earnings also exceeded expectations. Five Below sees net sales and adjusted earnings slowing to 10% and 20% growth, respectively in fiscal 2026. We saw the chain start slowly last year, too. It hasn't proven mortal yet. In the meantime, CEO Winnie Park is killing it just 15 months into this gig.
This Morning's Breakfast News
7.30 am
The Dow Jones fell 1.63% yesterday, on course for its worst month since 2022, as Federal Reserve Chair Jerome Powell flagged elevated uncertainty and the potential for higher inflation as part of the latest central bank meeting, as officials voted to hold interest rates steady in an 11-1 split.
- "Near-term measures of inflation expectations have risen in recent weeks": Powell said the bank wasn't making as much progress on inflation as had been hoped, although he noted it was too soon to know the exact impact of the conflict in the Middle East on prices.
- Updated dot plot suggests one cut in 2026 and one in 2027: Before the conflict, markets had been expecting at least two rate reductions this year, with the pushback on expectations being a factor in the S&P 500 closing 1.36% lower.
Apple's Supply Chain Moat Shines in China Market
7:25 am -- AAPL +0.54% in pre-market trading
Apple (AAPL +2.65%) is defying a cooling Chinese economy, posting a 23% surge in smartphone sales during the first nine weeks of 2026. While the broader Chinese market contracted 4% year-over-year, Apple capitalized on newly introduced government subsidies that--for the first time--include the base iPhone 17 model. This regulatory tailwind, combined with aggressive e-commerce discounting, has allowed Apple to absorb the "margin pain" of soaring memory chip costs that are currently crippling competitors. Research firm Counterpoint notes that while Android giants like OPPO and vivo are forced to hike retail prices to offset expensive semiconductors, Apple's vertically integrated supply chain is providing a tactical moat to snatch market share from cash-strapped rivals.
- The Memory Tax: Global memory chip prices have surged up to 50% this quarter; while competitors are passing these costs to consumers, Apple is holding the line on pricing to "starve out" mid-tier Android players.
- Subsidy Shift: The inclusion of the iPhone 17 in China's national consumption stimulus has effectively neutralized the "Buy Local" momentum previously enjoyed by Huawei, making Apple the primary beneficiary of Beijing's latest stimulus package.
NASDAQ: AAPL
Key Data Points
ICYMI: Wednesday's Scoreboard
6:15 am -- KLAC -1.05% in pre-market trading
KLA Corporation (KLAC +3.26%) was the subject of the latest Scoreboard video.
Musk: Nvidia Bond With Tesla Stays Strong
6:00 am -- TSLA -0.53%, NVDA -0.68% in pre-market trading
Elon Musk clarified Wednesday night that his newly restructured SpaceX AI--formed from the recent acquisition of xAI--and Tesla (TSLA +2.96%) will continue to be major customers for Nvidia (NVDA +1.67%). While Tesla is actively designing its fifth-generation "AI5" chip for the Optimus humanoid and Robotaxi platforms, Musk emphasized that the company's appetite for Nvidia's data center training power remains insatiable. The billionaire also teased a forthcoming "AI6" architecture, claiming a single-chip version could soon match the dual-processor power of its predecessor. Despite Tesla's push for "edge compute" independence, the comments reassure investors that the Nvidia-Tesla partnership is secure through the 2027 rollout of the "Vera Rubin" architecture.
- The Terafab Countdown: Musk revealed that Tesla's "Terafab" in-house semiconductor facility is set to launch in just seven days, marking a critical shift from a fabless design model to an integrated manufacturer.
- SpaceX IPO Tailwinds: By branding the xAI/SpaceX merger as "SpaceX AI," Musk is effectively bundling his high-growth AI assets into the rocket company ahead of a widely anticipated 2026 public listing.
SEC Greenlights Nasdaq's On-Chain Stock Experiment
5:30 am -- NDAQ -0.48% in pre-market trading
Nasdaq (NDAQ 0.29%) secured a landmark victory Wednesday as the Securities and Exchange Commission (SEC) approved its proposal to trade and settle certain stocks in tokenized form. Under a new pilot program with the Depository Trust Company, investors can choose to trade high-volume traditional shares or their blockchain-based digital counterparts on the same order book. Initially, this "on-chain" access is limited to the Russell 1000 Index and major ETFs tracking the S&P 500 and Nasdaq-100. The move highlights a broader push by exchange operators like Intercontinental Exchange (ICE 1.67%) to modernize aging market "plumbing" as the Trump administration shifts toward more accommodative crypto regulations.
- Fungible Frontiers: Tokenized shares will share the same CUSIP, execution priority, and shareholder rights as traditional stock, ensuring that digital trading doesn't fragment liquidity for existing investors.
- Settlement Speed: While current trades settle on a T+1 basis, the pilot is a Trojan horse for "T+0" or near-instant settlement, a shift that could significantly reduce the collateral requirements for major brokerage firms.
Before the Opening Bell
5:00 am
Stock futures are extending Wednesday's losses after the Federal Reserve delivered a "hawkish hold," keeping interest rates in the 3.5% to 3.75% range. While the central bank signaled one potential cut later this year, Chair Jerome Powell's warnings about "uncertain" energy inflation--spurred by the ongoing conflict with Iran--sent the S&P 500 and Dow Jones to their lowest closing levels of 2026. Investors were further spooked by a hotter-than-expected Producer Price Index (PPI) and the Fed's revised forecast, which now sees PCE inflation hitting 2.7% by year-end. Technology stalwarts like Nvidia (NVDA +1.67%) and Microsoft (MSFT +0.60%) are leading the pre-market decline as the "higher-for-longer" narrative gains momentum ahead of Thursday's jobless claims report.
- Micron's Lone Bright Spot: Micron (MU 0.61%) is bucking the downward trend, with shares surging in late trading after the memory-chip giant reported third-quarter revenue that blew past estimates on massive AI server demand.
- Energy Supply Shock: Despite a deal to resume Iraqi oil exports, Brent crude remains stubbornly above $100 per barrel, a level that the Fed highlighted as a primary risk to achieving its 2% inflation target in the near term.
