Key Takeaways

• CRM shares opened Friday at $165.94, reflecting a ~41% decline year-to-date and a ~58% drop from the late-2024 high
• Guggenheim shifted its stance from Neutral to Buy, establishing a $228 target and arguing valuations reflect an “Armageddon” baseline
• Analyst consensus averages Moderate Buy, with a mean target near $254 — suggesting potential gains of 55%–57%
• Q1 results topped forecasts: EPS reached $3.88 against $3.13 estimates, while revenue hit $11.13B, climbing 13.3% year-over-year
• The company’s AI portfolio — spanning Agentforce and Slack-integrated agents — now drives more than $2.3B in ARR

Shares of Salesforce (CRM) began Friday trading at $165.94, marking a steep year-to-date decline of approximately 41% and a roughly 58% retreat from the late-2024 high around $276.80. The downturn stems primarily from investor anxiety that AI-powered agents might render conventional CRM platforms redundant.

Salesforce, Inc., CRM

Yet a growing number of Wall Street voices believe the market has overreacted.

This week, Guggenheim analyst John DiFucci elevated CRM from Neutral to Buy, establishing a $228 price objective. His rationale: trading at approximately 3.7x recurring revenue and 11x EV/NTM free cash flow, the valuation assumes perpetual 5% business contraction — a scenario he deems implausible.

Citigroup likewise moved Salesforce to Buy this week, joining a widening group of analysts convinced the correction has exceeded rational bounds.

Current Street consensus shows Moderate Buy, with 28 Buy ratings, 6 Hold recommendations, and 4 Sell calls.

The mean price objective hovers around $254, pointing to approximately 55%–57% potential appreciation from present levels. Citizens JMP maintains the Street’s highest conviction with a $315 target.

Strong Q1 Results and Forward Outlook

Salesforce delivered Q1 figures on May 27th that surpassed Wall Street projections. Earnings per share landed at $3.88, topping the $3.13 consensus by $0.75. Revenue totaled $11.13 billion, representing 13.3% year-over-year growth and edging past the $11.05 billion forecast.

For fiscal 2027, management projects full-year EPS in the $14.060–$14.120 range. Second-quarter fiscal 2027 guidance calls for EPS between $3.250 and $3.270.

The stock trades within a 52-week range of $146.32 to $276.80. The 50-day moving average currently stands at $173.23, while the 200-day moving average registers at $197.71.

AI Product Suite Driving Material Revenue

Despite apprehension surrounding AI-driven disruption, Salesforce’s proprietary AI offerings are already delivering substantial financial contributions. The product lineup — encompassing Agentforce, Data 360, Slack-integrated AI agents, and Headless 360 APIs — currently generates north of $2.3 billion in rapidly expanding annual recurring revenue.

This metric serves as a focal point for analysts arguing the enterprise isn’t merely protecting existing market share — it’s actively capturing emerging opportunities.

On the institutional front, Kepler Cheuvreux Suisse SA expanded its CRM position by 284.1% during Q1, acquiring an additional 12,568 shares to reach a total stake of 16,992 shares valued around $3.17 million.

Vanguard Group maintains 89.8 million shares worth approximately $23.8 billion. State Street controls 50 million shares, with institutional investors collectively representing 80.43% of outstanding equity.

Salesforce distributed a $0.44 quarterly dividend per share on July 2nd, equating to a $1.76 annualized payout and yielding roughly 1.1%.

The board greenlit a $25 billion buyback authorization in March, permitting repurchases of up to 14.1% of outstanding shares via open market transactions.

HC Wainwright took a contrarian stance, lowering CRM to Negative on June 18th — representing one of just four Sell-rated opinions currently assigned to the stock.

Artem Tolkachev is Chief RWA Officer at Falcon Finance, which builds collateral-first dollar infrastructure.

What actually determines whether a stablecoin gets used, not just parked, is whether the venues where people trade, borrow and hedge will accept it as collateral. Can you post it as margin on an exchange? Does it get a sensible loan-to-value in a lending market? Can it move across venues without losing so much to haircuts that it becomes irrelevant? Collateral acceptance is the line between a dollar token that sits in a wallet earning a coupon and one that does real work in the financial system.That difference, parked versus used, isn’t academic. A parked token is inert capital; a token the market accepts as collateral lets its holder trade, borrow and hedge without selling it, which is the whole reason to hold a dollar on-chain rather than dollars in a bank.

This is the variable almost no one is pricing in. We are about to add tens of billions of dollars in new stablecoin supply on the assumption that supply equals genuine adoption. It doesn’t. If that supply arrives while exchange and venue risk teams leave their collateral frameworks exactly where they are, the result won’t be adoption, it will be stranded collateral: tens of billions of dollars that are technically live, dutifully earning their 3%, and going precisely nowhere.

In the Nevada Supreme Court, Kalshi lost an effort a few days ago to halt a requirement that it block its customers in the state from much of the platform’s trading activity. The denial signed by three state justices on Wednesday said they were “not persuaded” by the business’ emergency motion, and Kalshi may also face legal trouble for failing to geofence its business by a court-imposed deadline.

In Ohio, Kalshi sued the gaming regulator on Monday — following earlier, parallel court arguments from the Commodity Futures Trading Commission — seeking to halt Ohio’s penalty against the company on accusations it’s run an unlicensed sports-betting operation.

The next day, a local court in Michigan granted that state’s gaming regulators a temporary, two-week restraining order against Kalshi to stop it from offering, advertising or facilitating sports betting there.

“Kalshi is targeting Michigan’s most vulnerable residents with sports betting dressed up as investing — and without intervention, the harm will keep getting worse,” said Michigan Gaming Control Board Executive Director Henry Williams in a Tuesday statement.

On the positive side for prediction platforms: The CFTC and its pro-innovation chairman, Mike Selig, are aggressively trying to make the case that Kalshi and the others belong under the sole jurisdiction of the agency as the U.S. derivatives regulator, arguing in its own lawsuits against several states that the contracts sold in the prediction markets are effectively the same as those an agricultural business might buy to hedge against future crop prices changes.

XRP traded near $1.13 on July 5, according to crypto.news market data. The token was down 1.04% over 24 hours but remained up 7.79% over seven days. Its market cap stood near $70.26 billion, while 24-hour volume was about $1.67 billion.

The price remains close to a key technical zone after a short recovery from the $1 area. XRP has moved back above short-term support, but it has not reclaimed the higher resistance area near $1.20.

A post from ChartNerd warned that XRP is close to printing a weekly 20 EMA and 200-week SMA death cross. The analyst said the 200-week SMA near $1.20 may turn from a support floor into a supply ceiling.

That level now matters because price remains below it. A weekly close above $1.20 would weaken the bearish case. Failure to reclaim it may keep sellers active during future rallies.

Weekly death cross keeps traders cautious

A death cross happens when a shorter moving average falls below a longer moving average. In this case, the focus is on the weekly 20 EMA and the 200-week SMA.

The signal does not confirm an instant drop by itself. It shows that medium-term momentum has weakened against the long-term trend. Traders often watch how price reacts after the cross appears.

ChartNerd said “the 200-week SMA ($1.20) now has the potential to flip from a historical support floor into a supply ceiling.” The analyst added that XRP must reclaim that area to reject the bearish setup.

The analyst also pointed to two past examples. In 2022, XRP formed a bottom shortly after a similar signal. In the 2018 to 2020 bear market, the final low came months later after repeated failures near the 200-week SMA.

Daily chart shows short-term recovery

The XRP/USDT daily chart still shows a broader downtrend, with lower highs from May into late June. The token recently bounced from the lower Bollinger Band near $1 and moved back above the middle band.

The latest candle is red near $1.1325, showing a pullback after the rebound. Price remains between the middle Bollinger Band near $1.1064 and the upper band near $1.2094.

Holding above $1.1064 keeps the short-term recovery alive. A drop below that level would weaken the bounce and bring the $1.00 to $1.03 area back into focus.

The MACD has improved, with the MACD line above the signal line and a positive histogram. Still, both lines remain below zero. That means momentum is recovering, but the wider trend has not fully turned.

Source: TradingView

Crypto.news data keeps $1.20 in focus

Crypto.news reported on July 3 that XRP climbed to a three-day high after Ripple’s European expansion and a fresh Supertrend buy signal. The report said XRP moved from around $1.02 on July 1 to an intraday high near $1.11.

A separate crypto.news analysis said XRP needed to reclaim $1.20 to $1.25 to support a stronger rebound. It also placed $1.10 as a key support level and warned that wider weakness could bring $0.90 and $0.80 back into view.

The same report said a monthly close above $1.40 would help confirm a stronger double-bottom case. Until then, XRP remains in a cautious zone, even after the recent rebound.

At press time, traders are watching three levels. XRP must hold $1.10 to protect the short-term bounce, reclaim $1.20 to weaken the death cross warning, and clear $1.40 to improve the larger structure.

Key Highlights

• Eli Lilly shares began trading at $1,208.37, marking a 14.4% gain year to date and outpacing the S&P 500
• GLP-1 therapies Mounjaro and Zepbound represented approximately 65% of first-quarter 2026 revenue
• The pharmaceutical giant introduced Foundayo, its oral GLP-1 treatment, with projections showing GLP-1 drugs will surpass 65% revenue share in Q2
• First-quarter earnings per share reached $8.55, exceeding analyst forecasts of $6.97, while revenue hit $19.80 billion — a 55.5% year-over-year jump
• The company deployed over $20 billion across acquisitions and strategic partnerships throughout 2026 to expand beyond its GLP-1 portfolio

Eli Lilly (LLY) shares opened Friday’s session at $1,208.37, hovering close to the 52-week peak of $1,238.00. The pharmaceutical giant’s stock has climbed 14.4% since January, outperforming the pharma sector’s 11.6% advance and the broader S&P 500 index.

Eli Lilly and Company, LLY

The Indianapolis-based drugmaker delivered first-quarter 2026 earnings of $8.55 per share, significantly surpassing Wall Street’s consensus forecast of $6.97. Total revenue reached $19.80 billion, beating projections of $17.82 billion and representing a 55.5% increase compared to the prior-year quarter.

The company’s dual GLP-1 blockbusters, Mounjaro and Zepbound, powered the majority of revenue expansion. These two medications alone contributed roughly 65% of all first-quarter sales. Following the U.S. market introduction of Foundayo — Lilly’s oral formulation for obesity treatment — analysts anticipate GLP-1 products will account for more than 65% of second-quarter revenue.

Foundayo’s arrival reignites direct market rivalry with Novo Nordisk (NVO), which introduced an oral Wegovy formulation in January 2026, securing a temporary first-mover advantage.

Strategic Expansion Beyond Weight-Loss Therapeutics

Lilly has accelerated efforts to broaden its product portfolio outside the obesity and diabetes segment. The pharmaceutical company is developing multiple therapeutic franchises designed to reduce dependence on GLP-1 revenue streams.

The diversification pipeline includes Omvoh for inflammatory bowel conditions, Jaypirca addressing specific blood malignancies, Ebglyss approved for atopic dermatitis treatment, Kisunla targeting early-stage Alzheimer’s disease, and Inluriyo recently launched for metastatic breast cancer.

Jaypirca has emerged as a standout performer. The FDA broadened its indication in late 2025 to include patients with relapsed or refractory CLL/SLL. Subsequently, Europe’s CHMP issued a positive recommendation for expanded approval covering all CLL treatment lines, with final European Commission authorization expected soon.

Lilly awaits a comparable FDA label expansion ruling for Jaypirca scheduled for later this year. Approval would substantially expand the addressable patient population across U.S. markets.

Regarding mergers and acquisitions, Lilly allocated more than $20 billion throughout 2026 toward deals encompassing oncology, neuroscience, cardiovascular therapeutics, gene editing platforms, and vaccine development. This represents a substantial commitment to long-range portfolio diversification.

Stock Valuation and Wall Street Perspectives

At present trading levels, LLY shares command a forward earnings multiple of 30.67 — exceeding the pharmaceutical industry average of 18.76 while remaining below the company’s five-year historical mean of 34.56. Market capitalization currently stands at $1.14 trillion.

Full-year 2026 EPS projections have trended upward during the past 60 days, climbing from $33.86 to $35.67. Looking ahead to 2027, estimates advanced from $42.56 to $44.61.

Institutional investors control 82.53% of outstanding shares. World Investment Advisors expanded its position by 12.1% during the first quarter of 2026, purchasing 2,936 additional shares to reach a total holding of 27,134.

Wall Street analysts maintain predominantly bullish outlooks. Goldman Sachs assigns a buy rating with a $1,283 price objective. Jefferies recently elevated its target to $1,350, maintaining a buy recommendation. Morgan Stanley reaffirmed its overweight stance in June.

Among 30 analysts monitored by MarketBeat, 23 recommend buying the stock, with a median price target of $1,235.07.

The sole dissenting voice: HSBC downgraded shares to reduce in March, establishing an $850 price target.

Lilly’s official fiscal year 2026 guidance projects EPS between $35.50 and $37.00, while the current sell-side consensus estimate sits at $35.74.

South Africa’s tax authority has proposed new guidance that clarifies how crypto assets are taxed under existing income and capital gains tax frameworks.

The South African Revenue Service (SARS) on Wednesday published draft guidelines on crypto asset taxation, applying South Africa’s existing tax framework, primarily the Income Tax Act, 1962, alongside capital gains tax rules.

The draft provides that most crypto activities, including trading, swapping and spending, are generally treated as disposals that may trigger tax events. It still emphasizes that the rules depend heavily on each taxpayer’s specific circumstances.

If adopted, the proposed guidelines are set to impact millions of local users, as SARS reported in 2024 that at least 5.8 million residents held crypto assets.

Crypto treated as an asset, not currency

The guidance document reiterated that crypto assets are not legal tender or foreign currency, but rather intangible assets for tax purposes.

“The preferred interpretation of the legal nature of crypto assets is that, although highly versatile and capable of negotiability, they are not ‘currency’ and, consequently not ‘foreign currency’,” the agency said.

Source: SARS

Taxpayer’s intention as a key element

The guidelines place significant emphasis on a taxpayer’s intention when determining how crypto is taxed.

According to SARS, whether a person is classified as a trader or a long-term investor depends on their behavior, transaction frequency and the purpose for holding the asset.

An excerpt on how taxpayer intention is assessed, according to the proposed guidelines. Source: SARS

“It is important to consider the taxpayer’s intention at the time of acquisition, at the time of selling the asset, and whilst holding the asset, as a taxpayer’s intention regarding an asset may change over time,” the authority said. SARS added that this requires a broad assessment of all relevant facts and circumstances.

Related: Crypto lobby urges Congress to pass staking and mining tax bill as is

The guidelines also say crypto assets may fall under South Africa’s donations tax, as the assets are treated as “property” under tax law, with tax rates ranging from 20% to 25%, depending on the value of the donation.

Public input open until August 31

The draft guidance is not final law and is open for public comment until August 31. SARS said it is intended to attempt to provide interpretive clarity rather than introduce new legal obligations.

South Africa has emerged as one of Africa’s largest crypto markets. According to Chainalysis’ October 2024 report, the country received about $26 billion in crypto value during the one-year period covered by the study.

Chainalysis also found that institutional and professional-sized transactions were the largest contributors to total value received, particularly from late 2023 through the first quarter of 2024, highlighting a shift toward larger and more structured market activity.

Magazine: AI is banking the unbanked in Africa… faster than crypto

South Africa’s tax authority, the South African Revenue Service (SARS), has released draft guidance intended to clarify how crypto assets should be treated under the country’s existing income tax and capital gains tax rules. The proposal reiterates that most crypto-related activity is generally viewed as involving taxable “disposals,” while stressing that the correct tax treatment can vary depending on a taxpayer’s specific facts.

SARS published the draft guidelines on Wednesday as part of a process that invites public comment. If the guidance is adopted, it could have practical implications for millions of users, particularly given SARS’ earlier reporting that at least 5.8 million residents held crypto assets in 2024.

Key takeaways

• SARS’ draft guidance frames crypto assets as intangible assets for tax purposes—rather than legal tender or foreign currency.
• Trading, swapping, and spending are generally treated as disposals that can trigger tax events under existing rules.
• How a taxpayer is classified—such as a trader versus a long-term investor—depends on behavior, transaction frequency, and intent.
• The draft also flags that crypto may be subject to donations tax when transferred as “property,” with rates that can range from 20% to 25% depending on the value.
• The guidance is open for public input until August 31 and is described by SARS as interpretive clarity rather than a new set of tax obligations.

Why SARS’ draft guidance matters for crypto holders

South Africa is often cited as one of the region’s most active crypto markets. In an October 2024 report, Chainalysis said the country received about $26 billion in crypto value over a one-year period. That level of participation makes clear why tax clarity is a live issue: the more day-to-day transactions occur—across trading platforms, peer-to-peer transfers, and merchant payments—the harder it becomes for taxpayers to confidently apply tax rules without detailed interpretive guidance.

In its draft, SARS does not propose a brand-new tax regime for crypto. Instead, it points back to the existing Income Tax Act, 1962, together with capital gains tax principles, aiming to reduce ambiguity about how those frameworks apply to common crypto activities.

Crypto is treated as an asset, not currency

A central theme in the draft is legal and tax classification. SARS says crypto assets are not legal tender and are not “foreign currency” for tax purposes. Rather, the authority characterizes them as intangible assets.

In the guidance, SARS emphasizes that even though crypto can be widely traded and negotiated, it should not be treated as currency in the tax sense typically used for foreign currency rules. The agency’s preferred interpretation, according to the draft, is that crypto assets are not “currency,” and therefore not “foreign currency.”

Tax events tied to disposals: trading, swapping, and spending

SARS’ draft indicates that many everyday crypto actions are likely to be treated as taxable disposals. Under this approach, a disposal can occur in multiple scenarios—not only when a user sells tokens for fiat, but also when they swap between crypto assets or spend crypto to purchase goods and services.

The draft does not claim one-size-fits-all outcomes. Instead, SARS repeatedly signals that the correct tax treatment depends on the taxpayer’s circumstances. Still, by describing most crypto activity as involving potential disposal events, the guidance points taxpayers toward a framework where reporting and record-keeping become increasingly important, particularly for individuals who frequently transact.

Intent and transaction patterns drive the trader vs investor distinction

Perhaps the most operationally important element for taxpayers is SARS’ focus on intent. The draft states that whether a taxpayer should be treated as a trader or as a long-term investor depends on behavior, transaction frequency, and the purpose for holding crypto.

SARS also stresses that intent is not static. It advises that taxpayers should consider intention not only at the moment of acquisition, but also when disposing of an asset, and throughout the period the asset is held—acknowledging that circumstances and objectives may change over time.

In practical terms, this means taxpayers who hold crypto for investment reasons may still face different treatment if their conduct resembles trading activity—such as high transaction volumes or activity that suggests an intention to actively profit from market movements. Conversely, frequent users may still argue for an investor characterization if their behavior and purpose align with long-term holding rather than trading.

Donations tax could also apply to crypto transfers

Beyond income tax and capital gains considerations, SARS’ draft notes that crypto assets may be treated as “property” under tax law, which can bring donations tax into scope. The draft indicates donations tax rates ranging from 20% to 25% depending on the value of the donation.

This matters for anyone transferring crypto without receiving value in return—particularly if assets are gifted to family members, charities, or other recipients. While the donation scenario is narrower than trading or spending, the guidance suggests taxpayers should not assume that gifting avoids tax consequences simply because it involves no conventional “sale.”

Public comment open until August 31

The draft guidance is not yet final law. SARS says it is open for public comment until August 31 and is intended to provide interpretive clarity rather than introduce entirely new legal requirements.

As South African crypto adoption continues and activity remains substantial—particularly in the context of institutional and larger-scale transactions highlighted by Chainalysis—tax guidance like this becomes a key reference point. The next question for users and professionals is how the final version will refine these principles, and how SARS expects taxpayers to document intent and transaction patterns when classifying activity for tax purposes.

Key Takeaways

• Goldman Sachs upgraded HOOD’s price target to $121 from $108, maintaining a “buy” rating following unprecedented June trading activity
• June saw Robinhood process $343 billion in equity trades, 274 million options contracts, and $14 billion in cryptocurrency transactions
• BTIG started coverage with a “buy” rating and $125 price target, describing Robinhood as “born to disrupt, built to compound”
• First quarter 2026 revenue reached $1.07 billion, representing 15% year-over-year growth, with gross margins approaching 94% and $411 million in operating profit
• HOOD shares have climbed 45% over the last three months, though down 11% year-to-date through mid-2026

Robinhood (HOOD) is capturing renewed Wall Street interest following an exceptional June performance, with Goldman Sachs upgrading its valuation on the fintech platform.

Robinhood Markets, Inc., HOOD

Goldman Sachs analyst James Yaro increased his price objective to $121 from the previous $108 while maintaining a “buy” recommendation. The revision follows preliminary June figures revealing record-setting volumes across event contracts, options, equities, and cryptocurrency trading.

With HOOD currently trading near $112.73, Goldman’s updated target represents approximately 7% upside from present levels.

The exceptional June performance wasn’t coincidental. The 2026 FIFA World Cup triggered substantial growth in prediction-market engagement through Rothera, Robinhood’s proprietary exchange and clearinghouse platform. June’s trading activity totaled $343 billion in equities, 274 million options contracts, and $14 billion in cryptocurrency.

This momentum extends beyond a single month. Chief Brokerage Officer Steve Quirk informed attendees at the Piper Sandler Global Exchange and Fintech Conference in June that April marked Robinhood’s second-strongest month historically for equity and options activity, while setting all-time records for futures and prediction markets.

CEO Vlad Tenev revealed at the June shareholder meeting that Robinhood currently operates 11 distinct business lines, each generating over $100 million in annual revenue. This represents significant evolution from a platform once almost exclusively dependent on trading commissions.

Prediction markets alone achieved $400 million in annualized revenue just 18 months following their introduction.

BTIG Initiates Bullish Coverage

Days prior to Goldman’s announcement, BTIG launched coverage with a “buy” recommendation and $125 price objective. Analyst Andrew Harte characterized Robinhood as “born to disrupt, built to compound,” projecting asset growth exceeding 20% annually throughout the coming decade.

Among 19 analysts tracking HOOD, 16 assign “buy” ratings while three maintain “hold” recommendations. The consensus price target stands at $105, modestly below current trading levels.

First Quarter Results Demonstrate Strong Fundamentals

The optimistic analyst perspectives align with solid operational performance. First quarter 2026 revenue totaled $1.07 billion, marking 15% year-over-year expansion, accompanied by a 94% gross margin. Operating profit reached $411 million, representing a margin exceeding 38%.

Net income settled at $346 million, translating to $0.38 diluted earnings per share.

Total assets expanded to $45.5 billion from $27.5 billion one year prior. Cash reserves exceeded $5 billion. While retained earnings remain negative at approximately $1.8 billion, this represents substantial improvement from -$3.7 billion twelve months earlier.

Operating cash flow turned positive at $2 billion in Q1 following two consecutive quarters of negative cash generation.

The trajectory hasn’t been entirely seamless. Cryptocurrency revenue declined 47% year-over-year in Q1 as Bitcoin retreated, contributing to HOOD stock’s 11% decline during the first half of 2026. Revenue growth decelerated significantly from 50% last year to 15% currently.

However, cryptocurrency no longer dominates the revenue picture. Equities trading revenue jumped 46%, Robinhood Gold membership expanded 36% to 4.3 million subscribers, and Robinhood banking experienced fivefold sequential growth.

HOOD currently trades at a P/E multiple of 55 and a price-to-sales ratio of 22. Analysts forecast revenue climbing from $4.47 billion in 2025 to $8 billion by 2029, with adjusted EPS advancing from $2.34 to $4.67.

At 30x forward earnings, HOOD could deliver 25% returns over three years. At 40x, that projection increases to 67%, according to analyst models.

The stock has appreciated 45% over the past three months.

Key Takeaways

• Michael Burry revealed short positions targeting Micron, Nvidia, Tesla, Applied Materials, Caterpillar, and a major semiconductor ETF
• His Micron short was initiated around $1,051.87, highlighting the stock’s extreme distance from its 200-day moving average—a gap unseen since 1984
• Burry characterized the AI investment trend as “mass addiction” and warned that “the end is nigh”
• Meanwhile, Micron delivered stunning results with revenue jumping 346% annually to $41.5 billion alongside record profitability metrics
• The core of Burry’s position centers on valuation extremes and market timing rather than fundamental business deterioration

Michael Burry, renowned for correctly forecasting the 2008 subprime mortgage collapse, has initiated significant short positions against leading artificial intelligence and semiconductor companies.

Beginning June 30 through a sequence of Substack publications, Burry revealed bearish bets on Nvidia, Tesla, Applied Materials, Caterpillar, and the iShares Semiconductor ETF. The following day, July 1, he disclosed a short position on Micron established at approximately $1,052 per share.

Micron Technology, Inc., MU

In his post, Burry characterized “the AI narrative is nothing more than mass addiction.” He punctuated his bearish stance with an ominous reference to the Joker from the original 1989 Batman movie: “The end is nigh. Dancing with the devil in the pale moon light.”

He shared Bloomberg data visualizations demonstrating AI chip manufacturers significantly outpacing both cloud infrastructure providers investing in AI and the wider ecosystem of AI-related companies. An additional chart illustrated the Philadelphia Semiconductor Index hovering near peak levels within its 15-year valuation spectrum.

The Bear Case Against Micron

Burry’s most pointed critique targeted Micron. He highlighted the stock’s history of experiencing 34 separate declines exceeding 30% throughout the past 42 years, labeling it exceptionally cyclical.

He calculated Micron’s median return on invested capital at merely 4% with median return on equity at 7%, describing these metrics as “frankly terrible.” According to Burry, Micron actually destroys shareholder value approximately once every three quarters.

Regarding Micron’s high-bandwidth memory products driving AI-related demand, Burry downplayed their significance as “just another in a very long series” of offerings without sustainable competitive positioning.

He attributed the stock’s recent price acceleration to “fear of missing out, greater fool theory, and public commitment bias.”

Examining Micron’s Financial Performance

The latest quarterly financial data from Micron tells a substantially different story than Burry‘s historical analysis suggests.

For the quarter concluded in May 2026, Micron reported revenue of $41.5 billion, representing a remarkable 346% increase year-over-year. Gross margin expanded dramatically to 84.6% from 37.7% in the comparable prior-year period.

Net income surged to $28.2 billion versus $1.9 billion twelve months earlier. Free cash flow reached $17.6 billion, a dramatic improvement from $1.7 billion in the year-ago quarter.

During the June 24 earnings conference call, Chief Business Officer Sumit Sadana indicated that customer appetite for memory products “well above our ability to supply” across virtually all product lines extending through 2028.

Micron shares have delivered approximately 1,000% returns over the trailing three-year period and have climbed roughly 260% during 2026 alone.

Currently trading near $976 per share, Micron carries a price-to-earnings multiple of approximately 22. Company leadership projected roughly $50 billion in revenue for the upcoming quarter.

Burry’s thesis doesn’t argue that Micron’s business is presently deteriorating. Rather, he’s wagering that the stock’s valuation has extended beyond sustainable levels and that the cyclical nature of the memory market will inevitably reassert itself.