The currently-expressed plan is to nearly double its fleet from seven to 13 ships by 2031 while the new 6,700-passenger Disney Adventure ship made its maiden voyage last March even if the rollout of the full summer sailing schedule has been plagued by multiple problems and delays.

On May 8, passengers who boarded the ship in Singapore for a four-day sailing a day prior had to disembark after one night aboard the ship over a mechanical failure with one of the ship's engines.

"We deeply regret that we are unable to continue with your Disney Adventure experience"

"We deeply regret that we are unable to continue with your Disney Adventure experience from May 7-11, 2026," Disney Cruise Line said in a short statement to passengers that does not expand on the nature of the problem.

While the four- and three-day itineraries on the Disney Adventures were always envisioned as a sailing around the Singapore Strait with no port stops, the abrupt requirement to disembark so shortly after boarding led some passengers aboard to describe it as a "cruise to nowhere."

Related: Disney removes show with popular theme from cruise ship's lineup

Disney confirmed that passengers booked for the cruise received a full refund of what they paid as well as an overnight hotel stay in Singapore, $500 in expenses due to the cancelation and $500 in future cruise credit with the company.

"The safety and comfort of our guests are always our top priority," Disney said further in its statement.

What you need to know about Disney Adventure, Disney's newest ship

Several local news outlets reported that passengers started hearing whispers of the cruise's looming cancelation shortly after boarding but had to wait for confirmation as a team of engineers worked behind the scenes to resolve the issue so that the sailing could take place.

"Being almost 9 hrs now and we still don't have our letter yet," one traveler claiming to be on the ship wrote on social media platform Reddit. "It's 9:47 p.m. It was announced around 2 p.m., disappointment level rising. All eateries are closed, there are other guests on the cruise too."

More Travel News:

• Airline to launch unusual new flight to Cayman Islands from the U.S.
• What you can expect at Disneyland's new 'World of Frozen'
• Unexpected country is most luxurious travel destination for 2026
• U.S. government issues strange warning on Ireland travel

Commissioned for construction in 2016, Disney Adventure was built for the cruise line's high-profile entry into the Asian market. The majority of Disney cruises currently sail in Alaska and the Caribbean alongside a few European itineraries.

The wider company is putting $12 billion into expanding its cruise ship offering into a larger part of its global portfolio alongside theme parks and streaming.

After one non-public sailing for journalists and content creators earlier in the spring, the ship embarked on one four-day and another three-day sailing at the start of May. The next sailing was scheduled to take place immediately after the canceled one got back into Marina Bay on May 11 — whether it will take place as scheduled has not yet been confirmed by the cruise line.

Related: National airline to start cool new flight between Poland and San Francisco

In the week that began on May 3, Wood sold millions of dollars worth of shares in one high-flying AI company near recent highs, only to turn around days later and buy back the stock after a sharp 11% drop.

In 2025, Wood’s flagship Ark Innovation ETF gained 35.49%, far outpacing the S&P 500’s return of 17.88% in the same period. So far this year, Wood’s flagship Ark Innovation ETF (ARKK) was up roughly 1.61%, trailing the S&P 500’s gain of more than 8%.

Wood gained a reputation after the Ark Innovation ETF delivered a 153% return in 2020. But her style also brings painful losses in bearish markets, as seen in 2022, when the Ark Innovation ETF tumbled more than 60%.

Those swings have weighed on Wood’s long-term gains. As of May 7, the Ark Innovation ETF has delivered a five-year annualized return of -6.17%, while the S&P 500 has an annualized return of 13.45% over the same period, according to data from Morningstar.

Cathie Wood expects a “great acceleration” brought by tech developments

Wood focuses on high-tech companies across artificial intelligence, blockchain, biomedical technology, and robotics. She thinks these businesses have strong growth potential, though their volatility often causes fluctuations in the Ark’s funds.

According to Morningstar analyst Bella Albrecht, two of Wood’s Ark funds were among the worst-performing ETFs in the first quarter of 2026. The Ark Next Generation Internet ETF (ARKW) ranked second on the list, while the ARK Innovation ETF placed fifth.

From 2014 to 2024, the Ark Innovation ETF wiped out $7 billion in investor wealth, according to an analysis by Morningstar’s analyst Amy Arnott. That made it the third-biggest wealth destroyer among mutual funds and ETFs in Arnott’s ranking. The analyst hasn’t updated the 2025 ranking.

In a March 23 Bloomberg podcast, Wood says the global economy is not heading into a downturn, but into what she calls a “great acceleration” driven by AI and other breakthrough technologies.

“We’re not going into the Great Depression, we’re going into the great acceleration,” Wood said, pointing to how past technological revolutions reshaped economic growth.

Related: Cathie Wood buys $14.9 million of tumbling AI stock

She noted that global real GDP growth averaged just 0.6% between 1500 and 1900, before the Industrial Revolution lifted it to around 3% for more than a century. Now, she argues, a new wave of innovation could push growth much higher.

“We think [technologies] are going to take growth into the 7 to 8% range,” Wood said, adding that the number may actually be conservative.

Wood also emphasized that AI is rapidly driving down costs across industries.

“These technologies are deflationary,” she said. “AI training costs are dropping 75% per year, and inference costs are falling as much as 85% to even 98% annually.”

In an earlier letter published in January, Wood rejects the “AI bubble” talk, saying it "is years away" and "the most powerful capital spending cycle in history" is coming.

"What once was the cap in spending seems to have become a floor now that the AI, robotics, energy storage, blockchain technology, and multiomics sequencing platforms are ready for prime time," she said.

But not all investors agree with Wood’s optimism. In the 12 months through May 7, the Ark Innovation ETF saw roughly $1.32 billion in net outflows, with $252 million exiting the fund over the past month, according to data from ETF research firm VettaFi. 

Cathie Wood buys $12.9 million of CoreWeave stock

On May 8, Wood’s Ark funds bought 113,076 shares of CoreWeave (CRWV), according to Ark’s daily trade information. These shares are valued at about $12.9 million after the stock tumbled 11% to close at $114.15 that day.

Just days earlier, on May 4 and May 5, Wood had sold a total of 198,572 CoreWeave shares worth roughly $25 million at prices around $127 and $125 per share.

Related: Analysts turn heads with AMD stock forecast after massive rally

Shares of CoreWeave, the Nvidia-backed cloud infrastructure company, are up roughly 60% year-to-date, despite the recent price decline after earnings.

CoreWeave focuses on GPU-powered computing for AI and machine learning workloads. Its data centers run on Nvidia chips, and major customers include Google (GOOGL) and Microsoft (MSFT). 

On May 7, CoreWeave issued weaker-than-expected second-quarter revenue guidance, which caused a decline in the stock price the next day.

The company reported an adjusted loss of $1.12 per share, wider than analysts’ expectations for a 90-cent loss. Revenue came in at $2.08 billion, topping estimates of $1.97 billion and more than doubling from $981.8 million a year earlier.

For the second quarter, CoreWeave projected revenue of $2.45 billion to $2.6 billion. The midpoint of that range fell below Wall Street estimates of $2.69 billion, according to CNBC. The company maintained its full-year 2026 revenue outlook of $12 billion to $13 billion.

CoreWeave's CEO, Mike Intrator, said on the earnings call that the company has now reached “hyperscale.”

"We have reached hyperscale with more than 3.5 gigawatts of contracted power, up more than 400 megawatts this quarter alone, with the substantial majority expected to be online by the end of 2027," he said.

"Our core customers, historically hyperscalers and foundation labs are deepening their commitment to us while an entirely new wave of enterprises are arriving and demanding access to CoreWeave's platform at scale."

After the earnings report, Bank of America reiterated a buy rating and $140 price target on CoreWeave stock. Analysts said the weaker near-term guidance was mainly tied to the timing of new data center capacity coming online, while revenue growth is still expected to accelerate sharply in the second half of 2026.

"We expect operating margin to improve sequentially throughout 2026, reaching 8% for FY26, driven by the progress in capacity coming online," the analysts wrote in a research note sent to TheStreet.

The analysts said CoreWeave continues to add active power capacity and is growing its backlog by roughly $30 billion from the prior quarter, with inferencing accounting for more than half of CoreWeave's compute usage, "which speaks to the visibility and longevity of its revenues," the analysts said. 

Fund manager buys and sells

• Cathie Wood buys $2.5 million of tumbling megacap stock
• Warren Buffett dumped 77% of Amazon to buy surging media stock
• Cathie Wood buys $11 million of tumbling megacap tech stock

"We expect inferencing to continue to be the primary source of evolving demand, as evidenced by Anthropic's impressive ARR growth," Bank of America added.

CoreWeave is not in the top 10 holdings of Wood’s Ark Innovation ETF.

Top 10 holdings of the Ark Innovation ETF as of May 8, 2026:

• Tesla Inc. (TSLA) 10.18%
• Advanced Micro Devices Inc. (AMD) 5.28%
• CRISPR Therapeutics AG (CRSP) 4.83%
• Tempus AI Inc. (TEM) 4.82%
• Circle Internet Group Inc. (CRCL) 4.64%
• Roku Inc. (ROKU) 4.56%
• Robinhood Markets Inc. (HOOD) 4.36%
• Shopify Inc. (SHOP) 4.31%
• Coinbase Global Inc. (COIN) 4.21%
• Beam Therapeutics Inc. (BEAM) 3.08%

Other than buying shares of CoreWeave (CRWV), Cathie Wood’s recent trading activity included purchases of Intellia Therapeutics (NTLA), Kratos Defense & Security Solutions (KTOS), Kodiak AI (KDK), Toast (TOST), Cloudflare (NET), Absci (ABSI), and X-Energy (XE), while selling Advanced Micro Devices (AMD), Twist Bioscience (TWST), Aurora Innovation (AUR), Teradyne (TER), and Rocket Lab (RKLB).

Related: Dave Ramsey, AARP warn Americans on IRAs, Roth IRAs

Those minimarket chains that also sell gasoline are suffering from an additional problem that many are working to solve: the lack of electric vehicle charging stations.

The lack of charging stations can severely impact a convenience store's revenue if EV owners do not stop in their stations and buy items in the store, as gas buyers often do.

One convenience store chain without charging stations is facing a bankruptcy filing, though the company has not indicated specifically if this was a problem contributing to its filing.

Eagles Investments Group files bankruptcy

Convenience store and gas station chain owner Eagles Investments Group Inc. filed for Chapter 11 bankruptcy protection to halt a foreclosure sale of certain properties after allegedly defaulting on loans held by SouthPoint Bank.

The Birmingham, Ala.-based convenience store retail chain filed its petition, No. 26-01630, in the U.S. Bankruptcy Court for the Northern District of Alabama on May 8 to reorganize, listing assets and liabilities of up to $50,000, according to PacerMonitor.

The company has not indicated a reason for filing for bankruptcy.

Debtor avoids foreclosure sale

Eagles Investments Group Inc. had allegedly defaulted on a mortgage held by SouthPoint Bank on three parcels in Lanett, Ala., according to a public notice published in The Lafayette Sun on May 6.

The three parcels were scheduled to be sold at a public auction to the highest bidder in front of the Chambers County Courthouse in Lafayette, Ala., on May 12, 2026, but Eagles Investments Group's Chapter 11 filing immediately invoked an automatic stay of all legal actions against the debtor while its bankruptcy case proceeds.

The foreclosure sale was originally scheduled for April 23, 2026, but was rescheduled to May 12, the public notice said.

Eagles Investments Group has 20 locations

Eagles Investments Group, which was founded in 2014, operates 20 combination gas station and convenience store locations in Alabama, mostly under the brand name EIG.

The C-store chain's primary market is Birmingham, with eight locations serving the city.

Eagle Investments Group's stores provide a selection of fuel options, fresh food, snacks beverages, essential groceries, automotive supplies, and personal care products. The convenience store and gas station chain, however, does not currently offer electric vehicle charging stations.

Chain owner plans to add EV chargers

"We support the future of driving with electric vehicle (EV) charging stations and are in the process of bringing charging stations compatible with most EVs to Alabama," the convenience store chain said on its website.

When owners of gas-powered vehicles stop at a convenience store and gas station, many drivers will stop inside the store and grab a cup of coffee, snacks, or maybe a lotto ticket to try their luck.

Those stores without EV chargers might be missing out on significant revenue from EV owners. Smaller operators are still catching up to the major chains that are adding EV chargers.

Major chains expand EV service

Major convenience store and gas station retailers, such as 7-Eleven, Wawa, and Sheetz, have recognized the EV opportunity and have been adding electric charging stations to their stations to bring those customers into their stores.

Wawa has installed over 210 chargers, Sheetz has over 650 chargers at 95 locations, and 7-Eleven is developing one of North America's largest fast-charging networks, Grist reported.

Related: 54-year-old KFC rival fried chicken chain closes more locations

Most retired workers still choose to claim before reaching full retirement age, locking in lower lifetime benefits in exchange for earlier income, according to Social Security Administration data.

Franklin Templeton’s wealth planning team says many retirees overlook several little-known provisions that may allow them to reverse, suspend, or adjust an earlier filing decision under certain circumstances. 

The firm’s analysis highlights how timing, Medicare costs, and repayment rules can dramatically affect long-term retirement income.

Franklin Templeton identifies the 12-month withdrawal window most retirees miss

The first and most powerful correction tool is what the Social Security Administration calls a “withdrawal” of your benefits application, and it comes with a strict deadline that catches most people off guard.

If you started receiving retirement benefits within the past 12 months, you can submit Form SSA-521 to cancel your claim entirely, as though you never filed, according to the SSA.

The catch is significant: you must repay every dollar you and your family members received in benefits during that period, including amounts withheld for Medicare Part B premiums, federal income taxes, and any garnishments from your checks.

You are also limited to just one withdrawal in your entire lifetime, which means using this option demands careful consideration of timing and financial readiness.

More Social Security: 

• Social Security beneficiaries just got some shocking news
• AARP warns Americans on major Social Security problem
• Young Americans have a surprising plan for Social Security

Bill Cass framed this option as most valuable for retirees whose financial circumstances changed shortly after filing, such as someone who claimed at 62 but then received an unexpected job offer or inheritance that eliminated the need for immediate income. 

Once the withdrawal is approved and repayment is complete, your future benefit is recalculated based on whatever age you choose to refile, potentially adding hundreds of dollars per month to your lifetime checks, Bill Cass explained.

Suspending Social Security benefits can add 8% per year after full retirement age

The second correction path applies to retirees who missed the 12-month withdrawal window but have reached their full retirement age, which is 67 for anyone born in 1960 or later under the current schedule.

These individuals can request a voluntary suspension of their benefits at any month after reaching full retirement age and before age 70, and they do not have to repay a single dollar of what they already collected, the SSA noted.

During the suspension period, each month without a payment accrues delayed retirement credits worth 2/3 of 1% per month, which translates to a guaranteed 8% annual increase in your benefit. Those credits accumulate until age 70, at which point benefits automatically restart at the higher permanent level, and every future COLA adjustment applies to that larger base.

“Within 12 months of claiming benefits, you can make a one-time change of mind and essentially “undo” your benefits application. If your monthly benefits have already commenced, you must repay all Social Security benefits received, including any funds withheld for Medicare premiums or taxes.” said Bill Cass, Director of Wealth Planning, Franklin Templeton.

There are important trade-offs to weigh before suspending, because your monthly checks stop completely during the suspension period, and any family members receiving benefits on your record will also see their payments halted immediately. 

The lone exception is a divorced spouse, who can continue collecting benefits even while your record is suspended, the SSA clarified in its guidance on voluntary suspension procedures.

Medicare premiums create a hidden cost in both Social Security correction paths

One key complication that Bill Cass highlighted affects retirees enrolled in Medicare Part B, the coverage handling doctor visits and outpatient services. Most beneficiaries pay Part B premiums through automatic deductions from their Social Security checks, a convenient arrangement that disappears the moment you withdraw or suspend benefits.

If you withdraw your application using Form SSA-521, you must indicate on the form whether you want to keep your Medicare Part B coverage, and if you choose to retain it, the Centers for Medicare & Medicaid Services will begin billing you directly for monthly premiums. 

The base Part B premium for 2026 is $202.90 per month, a nearly 10% jump from the $185 base premium in 2025,the Centers for Medicare & Medicaid Services announced.

Retirees who withdraw from Medicare Part B entirely and then re-enroll later may face permanently higher premiums due to the late enrollment penalty, which adds 10% to your monthly premium for each full 12-month period you were eligible but chose not to enroll. 

Franklin Templeton outlines three little-known Social Security provisions

Most retirees assume that once Social Security payments begin, the decision is final. Franklin Templeton's Bill Cass argues otherwise, pointing to three distinct provisions built into the system that allow claimants to reverse, pause, or passively improve an earlier filing decision, each with different eligibility windows, costs, and trade-offs.

1. Withdraw your application within 12 months: Cancel your claim entirely using Form SSA-521, repay all benefits received, and refile later at a higher benefit level.
2. Suspend benefits after full retirement age: Pause your checks with no repayment required and earn delayed retirement credits worth 8% per year until age 70.
3. Let the earnings test recalculation work in your favor: Continue working while claiming early, and the SSA automatically recalculates your benefit at full retirement age to credit months where checks were withheld due to excess earnings.

The three paths serve different retiree profiles at different stages, but they share a common thread: each one can permanently raise the monthly benefit a retiree collects for the rest of their life. Bill Cass emphasized that understanding which option applies and when separates a costly early claim from a correctable one.

Franklin Templeton’s Bill Cass urges retirees to model the full financial picture before acting

For many retirees, Social Security claiming decisions feel permanent once the first payment arrives.

Franklin Templeton’s analysis highlights that the system contains limited opportunities to revise or pause benefits under specific rules, though each option carries trade-offs tied to taxes, Medicare premiums, repayment requirements, and household income needs. 

The discussion also reflects a broader shift in retirement planning, where monthly cash flow, healthcare costs, and longevity increasingly shape financial decisions alongside savings balances. 

As Americans continue relying heavily on Social Security income, understanding how these lesser-known provisions work may become more important for retirees navigating changing economic conditions and rising living expenses.

Related: Franklin Templeton’s bold S&P 500 call stuns Wall Street

Jim Cramer is not chasing it. And on May 7, he said exactly why.

A caller on CNBC's "Mad Money" Lightning Round asked Cramer about Agnico Eagle Mines, one of the world's largest gold producers. Cramer acknowledged the stock but used the question as a platform to explain his current stance on the metal itself.

"You would be in the best one," Cramer said of Agnico Eagle Mines. "I am not bullish from gold right now. I remember we had the great Larry Williams on, and he said, 'listen, gold is going lower.' I'm with Larry," Cramer said, according to CNBC.

More Gold & Silver

• Bank of America has stark message for Silver investors
• State Street declares gold must-hold asset
• How much gold you should hold in your retirement portfolio

Larry Williams is a legendary futures trader and creator of widely used market indicators who has publicly forecast gold going lower in 2026, according to StockCharts. Cramer's alignment with that view is a notable break from the dominant Wall Street consensus, where major banks are still projecting gold significantly higher by year-end, Benzinga noted.

Where gold stands and why the pullback matters

Gold is currently trading around $4,867 per ounce, approximately 13% below its January 28 all-time high of $5,589.38, according to GoldSilver.com.

The metal gained approximately 65% in 2025, its strongest annual performance since 1979, driven by central bank buying, inflation fears, dollar weakness, and geopolitical stress tied to the Iran conflict.

That rally created the setup Cramer is now questioning. After a run of that magnitude, the case for continued near-term outperformance requires fresh catalysts.

Without them, gold can lose momentum or consolidate for extended periods even when the longer-term structural case remains intact.

The pullback from the January peak is already 13%.

Whether that represents a temporary correction or the beginning of a more sustained consolidation is exactly the question investors are debating, and it is the question Cramer appears to be answering with his "not bullish" stance.

Why Cramer's view cuts against the Wall Street consensus on gold

Cramer's near-term caution sits in direct contrast to where major banks have set their year-end 2026 gold targets.

JPMorgan projects gold reaching $6,300 by year-end, representing roughly 30% upside from current levels. Goldman Sachs has a year-end target of $5,400. UBS sits at $6,200, while Wells Fargo has set a range of $6,100 to $6,300.

Those bullish forecasts rest on three main pillars: continued central bank buying at more than double pre-2022 rates, sustained geopolitical risk premiums tied to the Iran war, and expectations that the Federal Reserve will eventually move toward rate cuts, which tend to support gold by reducing the opportunity cost of holding a non-yielding asset.

Cramer is not disputing that those structural forces exist. He is questioning whether they are powerful enough right now to drive the next leg higher, particularly after the metal has already delivered historic returns over the past 18 months.

What this means for investors watching gold

The distinction Cramer is making is between the long-term case for gold and the near-term tactical setup.

Those are different questions, and investors often conflate them. Gold can be a sensible long-term portfolio hedge and simultaneously not be the best place to deploy new money on a three to six month view.

His stance also highlights how sensitive gold is to interest rate expectations and dollar dynamics.

If the Federal Reserve signals it will hold rates higher for longer, gold faces headwinds from competing returns in cash and fixed income. If the dollar strengthens, gold becomes more expensive for international buyers, reducing demand.

The fact that Cramer explicitly invoked Larry Williams is also notable. Williams uses cycle analysis and historical pattern recognition rather than purely fundamental inputs.

His bearish gold view is a technical and cyclical call, not a macro one. By aligning with it, Cramer is signaling that the chart setup may not support near-term bullishness even if the macro backdrop eventually does.

Key gold market context as of May 8, 2026:

• Gold all-time high: $5,589.38 per ounce, set on January 28, 2026, according to GoldSilver.com
• Gold current price: approximately $4,867 per ounce, roughly 13% below the January peak, GoldSilver.com confirmed
• Gold's 2025 annual performance: approximately 65% gain, its strongest year since 1979, according to the World Gold Council
• Major bank year-end 2026 gold targets: JPMorgan $6,300, Wells Fargo $6,100-$6,300, UBS $6,200, Goldman Sachs $5,400
• Cramer's exact quote: "I am not bullish from gold right now...I'm with Larry," referring to futures trader Larry Williams, according to CNBC
• Stock discussed: Agnico Eagle Mines, one of the world's largest gold producers, according to Benzinga

What could change Cramer's view on gold

Gold could regain Cramer's enthusiasm if the conditions that drove its 2025 rally intensify.

A reacceleration of inflation, a more dovish Federal Reserve pivot, a fresh escalation in geopolitical risk, or a meaningful weakening of the dollar could all rebuild the near-term case for the metal.

Central bank buying remains a powerful structural floor.

The World Gold Council recorded central bank purchases at more than double the pre-2022 pace through 2025, and that demand has not disappeared. If institutional buying accelerates further, it could override the technical signals that Williams and Cramer are flagging.

For now, Cramer's message is a reminder that even assets with strong long-term fundamentals can go through stretches where the near-term setup is unfavorable.

His view is not that gold is broken. It is that the current environment does not offer the urgency or catalyst required to justify enthusiasm at these prices.

Related: Citi Bank has a message for investors on gold

Buying a Samsung flagship phone means also getting a display manufactured by Samsung itself. However, recent industry reports suggest that this might be at risk. According to sources, Samsung is considering using OLED displays from Chinese supplier BOE in non-Ultra models of the Galaxy S27 series as a cost-cutting measure.

Chinese-made BOE displays on Galaxy S27: cost cutting to manage rising prices?

Smartphone manufacturers are currently facing a “DRAM crisis,” with the prices of memory and storage skyrocketing. To avoid passing all these costs onto consumers—or sacrificing their own profit margins—Samsung is reportedly looking for ways to pinch pennies elsewhere, research firm SigmaIntel reports (via ZDNet Korea). Since the display is one of the most expensive components in any phone, it has become the primary target for cost-cutting.

To keep a competitive price tag on the base Galaxy S27, Samsung is considering a dual-sourcing strategy. Samsung Display will likely still provide the majority of panels. However, the company is reportedly in talks with the Chinese manufacturer BOE to supply screens for the base model.

A potential big shift

This move would be a historical shift. Companies like TCL CSOT have already penetrated Samsung’s mid-range supply chain—specifically with the Samsung Galaxy A57. However, BOE has been trying to break into the prestigious Galaxy S “flagship club” for years. Well, the current global scenario could finally allow them to achieve their goal.

The challenge for Samsung is managing the potential quality gap. Historically, Samsung Display’s panels have offered superior brightness and efficiency compared to Chinese alternatives. If Samsung moves forward with this partnership, the standard Galaxy S27 might not only use older “M13” OLED materials but could also face consistency issues if some units ship with Samsung screens and others with BOE panels.

An internal tug-of-war

Samsung Electronics wants the cheapest parts possible to keep the Galaxy S27 profitable. However, the Samsung Display division surely wants to protect its 99% monopoly over the Galaxy supply chain. Losing its exclusive grip on the S series could weaken Samsung Display’s bargaining power with other major clients, including Apple.

For now, nothing is set in stone. However, if true, Samsung fans probably won’t welcome the change.

The post Base Galaxy S27 Might Use a Chinese Display Instead of a Samsung One: More Cost Cutting? appeared first on Android Headlines.

One of Wall Street's most closely watched AI infrastructure names just delivered that kind of moment. And the analyst who stepped up afterward had something specific to say about why the selloff may have missed the point entirely.

What Wells Fargo changed on CoreWeave

Wells Fargo analyst Michael Turrin raised his price target on CoreWeave to $155 from $135 on May 8, maintaining an Overweight rating. The move came a day after CoreWeave's Q1 2026 earnings report delivered a revenue beat but a softer-than-expected Q2 guide that sent the stock sharply lower.

Turrin's note was direct about the tension. "While 1Q results were clean, CRWV's lower-than-expected 2Q guide and reit FY guide complicate the ROY setup putting significant weighting on 2H results. CRWV continues to execute, however, now with $100B backlog and 1GW+ active capacity," he said.

The prior Wells Fargo target was $135, raised from $125 the week before earnings when Turrin argued CoreWeave's $63.9 billion in Q1 deal signings and OpenAI delivery timeline updates would be the key catalysts to watch, according to CNBC.

CoreWeave Q1 results and the Q2 miss that rattled markets

CoreWeave reported Q1 2026 revenue of $2.078 billion, beating the LSEG consensus of $2.013 billion. On the bottom line, the company posted an adjusted loss of $1.11 per share versus the $0.87 loss expected, a miss driven by surging infrastructure costs, according to CNBC.

The problem was Q2 guidance. CoreWeave guided for $2.45 billion to $2.60 billion in Q2 revenue. The midpoint of $2.53 billion trailed the $2.69 billion LSEG consensus. The company also maintained its full-year revenue guidance of $12 billion to $13 billion rather than raising it, which left investors concerned about back-half weighting, CNBC noted.

CEO Mike Intrator pushed back on the near-term framing. "I always think that everyone is looking at the stock and focusing on the trees and missing the forest," he told CNBC. "The forest is, there's this seismic level change occurring in our economy and being driven by these incredible technology companies that are dependent upon the infrastructure."

He also declared: "We have reached hyperscale," citing 10 clients now committed to spending at least $1 billion on CoreWeave products.

Why Wells Fargo is looking past the Q2 miss

Wells Fargo's decision to raise the target after the Q2 guide miss is a statement about what it thinks matters more. The bank is focused on the $99.4 billion revenue backlog, the 3.5 gigawatts of total contracted power, and the company's stated ambition to exceed $30 billion in annualized revenue by end of 2027.

In that framework, a softer Q2 guide is a timing issue rather than a structural problem. The backlog has an average five-year duration, meaning the revenue is contracted and waiting to be recognized. Turrin's note flags the risk clearly: significant weighting now falls on the second half of 2026. CoreWeave's own guidance shows the math — Q2 operating income guided at $30 million to $90 million, implying the bulk of the $900 million to $1.1 billion full-year target comes in the second half, according to CoreWeave IR.

Key figures from CoreWeave's Q1 2026 earnings and analyst reactions:

• Wells Fargo price target: $155, raised from $135, Overweight maintained, analyst Michael Turrin, May 8, according to Seeking Alpha
• Q1 2026 revenue: $2.078 billion, beating $2.013 billion consensus; Q2 guide midpoint $2.53 billion vs $2.69 billion consensus, according to CNBC
• Revenue backlog: $99.4 billion with average five-year contract duration; 10 clients committed to $1B+ in spending, CNBC confirmed
• Total contracted power: 3.5 gigawatts; active capacity: 1GW+; target 1.7GW online by year-end, according to CoreWeave IR
• Annualized revenue target: exceeding $30 billion by end of 2027, CoreWeave IR confirmed
• Debt raised in Q1: $8.5 billion in new debt; total debt approximately $25 billion, CNBC noted
• Nvidia investment: purchased an additional $2 billion in CoreWeave shares during Q1, CNBC confirmed
• Other analyst targets post-earnings: Jefferies Buy $160, Truist Hold raised to $131 from $85, median Street target $125, according to Stock Analysis

The balance sheet risk the market is pricing in

Bulls on CoreWeave focus on the backlog and the AI demand story. Bears focus on what it costs to capture that demand. CoreWeave closed Q1 with approximately $25 billion in total debt after raising $8.5 billion in new financing during the quarter, CNBC noted. Capital expenditure guidance for Q2 alone is $7 billion to $9 billion.

Nvidia's continued commitment offers some reassurance. The chipmaker purchased an additional $2 billion in CoreWeave shares during Q1, signaling confidence in the company's trajectory and deepening its access to GPU supply. But Nvidia's backing does not change the core tension: a company spending far more than it earns, racing to build capacity ahead of demand.

Wells Fargo is betting the demand arrives on schedule and the second-half operating income ramp materializes. At $155, the bank is saying the risk-reward remains attractive even with that uncertainty in play. The Street's median target of $125 says not everyone agrees.

Related: Bank of America revamps Nvidia-backed CoreWeave and Nebius stocks

The $2.67 billion resolution stems from a class-action lawsuit that accused more than 35 Blue Cross Blue Shield affiliates of carving up the country into exclusive territories and agreeing not to compete against one another in those regions. 

The alleged result was higher premiums and fewer choices for the millions of consumers and employers who relied on BCBS coverage. BCBS denied all allegations of wrongdoing throughout the litigation and maintained that its business practices delivered lower healthcare costs and broader access to care for customers across the country. 

No court ever issued a verdict on the merits of the case, and the parties reached a negotiated resolution instead.

Payments are rolling out now, but the window for filing new claims closed years ago, and the amount you receive depends on factors that most claimants have no control over at this point.

BCBS settlement payments of roughly $333 reach claimants in May

The initial round of payments from the $2.67 billion settlement fund began distribution in May 2026, approximately 13 years after the cases were consolidated as MDL 2406 in 2013 in the U.S. District Court for the Northern District of Alabama, the settlement administrator confirmed.

After attorneys’ fees of approximately $667 million and administrative costs were deducted, the remaining net fund available for direct distribution to consumers totals roughly $1.9 billion, the settlement FAQ page confirmed. 

With approximately six million valid claims on file, the average individual payout is about $333, though actual amounts will vary based on the length of coverage and the total premiums each claimant paid during the class period.

The Net Settlement Fund is divided into two pools, with the larger share allocated to fully insured individuals and groups, and a smaller share reserved for self-funded accounts and their employees.

A smaller payout from one pool does not increase the distribution amount from the other, the settlement administrator stated on the official website.

The 13-year antitrust case that led to a $2.67 billion BCBS resolution

The class-action lawsuit, consolidated as In re: Blue Cross Blue Shield Antitrust Litigation MDL 2406 in 2013, accused more than 35 independent BCBS insurance plans of violating the Sherman Antitrust Act by agreeing to divide the United States into non-competing geographic territories, Newsweek reported.

Plaintiffs alleged that these agreements inflated premiums and reduced coverage options for consumers and employers nationwide. The parties reached a preliminary settlement agreement in October 2020, and Judge R. David Proctor of the Northern District of Alabama granted final approval in August 2022. 

More Health Care:

• If your Medicare plan was canceled, do this now
• Health care costs are the wild card in year-end tax planning
• 22 million Americans hit by ACA health insurance cliff after vote fails

Objectors then filed appeals, but the Eleventh Circuit Court of Appeals unanimously affirmed the settlement in October 2023, as documented by the law firm Hausfeld. The U.S. Supreme Court subsequently declined to hear further challenges, clearing the final legal hurdle and allowing distribution to proceed.

The resolution represents the largest private antitrust settlement in a case where no government agency had prosecuted, investigated, or participated in the litigation, Hausfeld noted.

A separate $2.8 billion provider settlement addressing claims from healthcare providers who treated BCBS patients received final court approval in 2025, bringing the total antitrust resolution above $5.4 billion.

Experts say the BCBS settlement raises broader questions about insurance competition

Michael Ryan, a finance expert and founder of MichaelRyanMoney.com, told Newsweek that the settlement offers a structural lesson for consumers who may not realize how geographic market dominance can shape the premiums they pay each month for healthcare coverage.

“The payments are meaningful for those who filed valid claims, but the larger development are questions about the healthcare industry and how reduced competition can limit choices and elevate prices,” said Alex Beene, a financial literacy instructor for the University of Tennessee at Martin.

“For consumers, the lesson is structural: when a handful of plans dominate a market with geographic carve-outs, premiums reflect that absence of competition, not actual risk pricing,” Ryan told Newsweek.

Beyond the financial payments themselves, the settlement includes injunctive relief provisions requiring BCBS affiliates to change competitive practices going forward, with a court-appointed monitoring committee overseeing implementation.

Who qualifies for a BCBS settlement payment, and who does not

Eligibility for payment is limited to individuals and businesses that filed a valid claim by the November 5, 2021, deadline, and no new claims are being accepted at this stage of the distribution process.

The settlement covers two distinct groups with different class periods, and understanding which category applies to your coverage determines whether you can expect a check.

BCBS settlement eligibility requirements

• Individuals and insured groups who held BCBS health insurance policies between February 7, 2008, and October 16, 2020, and filed a valid claim by November 5, 2021, the settlement administrator confirmed.
• Self-funded account customers who purchased BCBS administrative services plans between September 1, 2015, and October 16, 2020, and filed by the same November 2021 deadline, the administrator noted on the FAQ page.
• Government accounts, including states, counties, municipalities, and Native American tribal entities, are excluded entirely from the settlement classes regardless of filing status, the FAQ page stated.
• Medicare Advantage policyholders are not eligible for payment, although Medicare Supplemental policyholders may qualify if they meet all other coverage and filing deadlines, the administrator clarified.
• Any claimant whose calculated payment falls at $5 or less will not receive a distribution from the settlement fund, USA Today reported in its coverage of the settlement.

Payment amounts depend on several factors, including how long you maintained BCBS coverage, the total premiums you paid during the class period, and whether your plan was fully insured or self-funded. 

Claimants will receive their payments through paper checks, prepaid debit cards, PayPal, Venmo, or electronic deposit, depending on the method they selected during the original claims process, ConsumerAffairs reported.

Settlement scams targeting BCBS claimants are a growing concern

Large class-action distributions attract fraudsters, and settlement administrators have warned that the $2.67 billion BCBS payout is a particularly high-value target for phishing and impersonation schemes aimed at people expecting legitimate checks. 

The official settlement website operated by JND Legal Administration is the only legitimate source for claim status information, and no authorized representative will ever ask you for your full Social Security number, cryptocurrency, gift cards, or upfront fees, OpenClassActions.com reported.

If you filed a claim and have not yet received a determination notice, the settlement administrator recommends checking spam and promotions folders in your email regularly throughout May and June 2026. 

Claimants who have moved since filing can update their contact information by reaching JND Legal Administration at 888-681-1142 or by emailing info@BCBSsettlement.com, the administrator stated on the official settlement website.

What the BCBS antitrust resolution could mean for health insurance premiums

The Blue Cross Blue Shield settlement closes one of the largest private antitrust disputes in U.S. healthcare history while raising broader questions about competition inside the insurance industry. 

Although the payouts compensate millions of eligible claimants, the case also highlights how market concentration and regional restrictions can influence premiums, consumer choice, and long-term healthcare costs. 

The agreement’s structural reforms will now be closely watched over the next several years as regulators, researchers, and policyholders assess whether increased competition among Blue plans meaningfully changes pricing and coverage dynamics.

For many consumers, the settlement represents both a financial resolution and a reminder of healthcare’s complex market structure.

Related: Blue Cross Blue Shield customers may soon see settlement payments

"Well, we've seen overall labor and food costs go up 35% since the pandemic," National Restaurant Association (NRA) Chief Economist Chad Moutray told Scripps News. "But it's not just those costs. We've seen insurance and taxes and everything else go up, utility costs, et cetera."

"Those extra costs have really eaten into the bottom line," he added.

Traditionally, restaurants would pass those costs, at least some of them, onto customers. That's not possible right now, according to the James Beard Foundation's 2026 Independent Restaurant Industry report.

Establishments that raised prices by more than 10% were most likely to lose customers and then make lower profits, the study showed.

Anne McBride, vice president of impact at the James Beard Foundation, said restaurants have reached a tipping point with customers.

"Chefs and operators feel that they can no longer pass on any additional increasing costs to their customers. We really hit a spot where consumers, diners, cannot pay any more at restaurants than they already are," she said.

It's a situation that has pushed Los Iguana's, a Mexican chain based in the United Kingdom, into a bankruptcy situation, which has put its 44 restaurants at risk of shutdown.

Las Iguanas warns it may run out of cash

Iguanas Holdings Limited, which runs 47 Las Iguanas restaurants across the United Kingdom, has "fallen into financial difficulties," the company's lawyers told the High Court on (May 6), Swindon Advisor reported.

The restructuring is being conducted through a formal U.K. High Court creditor approval process aimed at avoiding administration, the equivalent of U.S. bankruptcy.

"Now, if a restructuring plan isn't approved, the company will have 'no funding to continue trading' and could fall into administration," the website shared.

Las Iguanas is not alone in facing the potential for being placed into administration, the U.K. version of a bankruptcy filing.

At a convening hearing in London, Justice Hildyard approved Iguanas Holdings' request to convene creditor meetings on May 28 to vote on its restructuring plan. The operator, part of The Big Table Group, says the plan is essential to avoid imminent administration. If creditors agree, the scheme will return to court for final sanction on 5 June, according to court filings reported by the Yorkshire Post.

Big Table Group has been funding the chain's operating losses, but does not intend to continue doing that, putting liquidation on the table if the chain's restructuring plan does not get approved.

"The restructuring plan seeks to address £37m owed to a single creditor, with Big Table pledging £3m in new funds. It also imposes rent reductions and compromises on landlord debts, argued to be better than the returns from administration," added the Yorkshire Post.

Las Iguanas financial trouble key facts:

• Las Iguanas operator Iguanas Holdings is pursuing a court-approved restructuring plan.
• The plan involves creditor voting and potential debt restructuring of approximately £37 million.
• Big Table Group has provided interim funding support.
• Failure of the plan could result in administration.

Las Iguanas part of a bigger problem

Las Iguanas’ restructuring is moving through a U.K. High Court creditor approval process designed to avoid administration, following a hearing that allowed creditor meetings to be convened under a Part 26A restructuring plan, according to Business Sale.

Ryan Perkins, the lawyer for the restaurant chain, said the U.K. casual dining sector had suffered "substantial problems" in recent years, caused by factors including high inflation, reduced customer spending, and increased taxes, reported the Sheffield Star.

He continued that Iguanas Holdings and Big Table had "done their best to meet these problems by improving the Las Iguanas menu and customer experience, amongst other things," but that trading conditions "remain very challenging."

"The number of restaurant insolvencies in the U.K. has jumped 46% in the last year as rising costs and a downturn in consumer spending pummel the hospitality industry, according to Insolvency Service numbers.

A dent in consumer spending due to inflation, along with rising costs, was the most prominent factor cited by audit firm Mazars in an analysis of the figures.

“A lot of restaurants are beset with challenges well outside their control — many are struggling to keep their heads above water,” Paul Maloney, associate director at Mazars, told City AM.

U.K. administration FAQ

• What does “administration” mean for a restaurant in the U.K.?: Administration is a formal insolvency process where an independent licensed insolvency practitioner takes control of a struggling business to try to rescue it, sell it, or achieve a better outcome for creditors than liquidation.
• Does a restaurant close immediately when it enters administration?: Not always. In some cases, restaurants continue trading while administrators attempt a sale or restructuring. However, closure of underperforming locations is common.
  Source: U.K. Insolvency Service

Related: 38-year-old Italian chain down to 9 locations nationwide

The bank share of corporate lending decreased to 29% in 2025 from 48% in 2015, Bowman said on May 8 at the Hoover Institution’s annual Monetary Policy Conference at Stanford University.

Basel III framework and non-banking current environment

The private credit market is about $1.4 trillion, about the size of the high-yield bond and leveraged loan markets, but accounts for about 10% of total US corporate borrowing.

Bowman’s words about the private credit market are a direct acknowledgment by a sitting Fed governor of post-2008 bank capital rules, which were designed to safeguard the banking system after the financial crisis.

However, it was those very rules that produced unintended consequences, making it more costly for banks to lend directly to corporate borrowers.

As a result, Bowman said, “current capital rules create a perverse incentive,” in that banks receive favorable treatment from regulatory entities to lend to private credit funds rather than to creditworthy corporations directly.

Recalibration of Basel III framework

Under the recalibrated Basel III framework, the risk weight on loans to investment-grade corporate borrowers would drop from 100% to 65%, narrowing the gap between bank loans to companies and bank loans to nonbank financial intermediaries.

She mentioned the change is not meant to push private credit out of the market, but rather to level the playing field.

Bowman flagged the growing risks in the non-banking sector, including recent bankruptcies that imposed losses on banks and private credit lenders, and concerns about software-sector exposure tied to artificial-intelligence disruption, which have compounded the worries.

Stress signals in the BDC market

According to the February Fitch Ratings report, redemptions at perpetually non-traded BDCs increased to a 4.5% average net asset value in Q4 of 2025, which was up 1.6% in the third quarter.

Software-sector exposure has been a key fire starter. Blue Owl Technology Income Corp focuses on software and tech-related companies and reported 15.4% redemptions in Q4 2025, with a net outflow of $394 million. In the same period, North Haven Private Income Fund saw $123 million in outflows. Fitch's 2026 sector outlook for BDCs is "deteriorating."

Related: SaaS-pocalypse stresses $3 trillion private credit market

The Fed Board will alter regulatory reporting requirements so banks need to report financial information, such as net income, total assets, and leverage, for the nonbank financial entities they lend to.

Bowman said the current industry classification includes private equity, private credit, hedge funds, BDCs, and asset-backed issuers in the “Other Financial Vehicles” category, which is broader and more useful for measuring interconnection and concentration risk.

Her words come as the private credit market faces its most-watched and scrutinized stretch since the COVID-19 era.

The worst-case private credit default forecast is 15% if AI-driven disruption hits corporate borrowers harder than expected, according to UBS Strategists in February,

The next Federal Open Market Committee meeting is in June, and Kevin Warsh's confirmation as Fed Chair is set for May 15.

Related: Costco adds new exclusive dessert tied to viral trend

On May 7, Cloudflare, Inc., sent shockwaves through the tech sector by announcing a massive reorganization plan designated to accelerate its evolution into an “agentic AI-first operating model.” 

And the market response was swift and immediate, with the company's stock down 23% on Friday, following the earnings release and layoff announcement. 

While the company reported a 34% year-over-year revenue increase, the high cost of restructuring and the uncertainty around an AI-led workforce left investors wary.

Cloudflare's layoffs’ financial layout

Cloudflare officially announced its plan to reduce its headcount by approximately 20% and estimates it will incur significant charges of $140 million to $150 million in connection with the layoffs.

The financial burden of this workforce reduction is divided into two primary categories:

• Cash expenditures: $105 million and $110 million for notice payments, severance payments, and employee benefits.
• Non-cash expenses: $35-$40 million related to accelerated vesting of stock-based rewards for departing employees.

The move is a definite step towards Cloudflare’s evolution as an AI-first company. However, the company also admitted in its 10-Q filing that this evolution and automation “may not achieve the benefits” it expects within the expected time frame and could adversely affect the business.

More Layoffs:

• E-commerce giant shuts down office as layoffs rise
• Oracle signals massive AI opportunity as layoffs hit
• AI won’t trigger mass layoffs yet, Fed says

This 20% workforce reduction translates to 1,100 Cloudflare employees affected by the AI aftermath. And Matthew Prince, co-founder and CEO, is clear that this is not a cost-cutting exercise. 

But simply that: since late last year, the company has noticed that employees’ productivity has increased 100 times over. Prince compared the shift to “going from a manual to an electric screwdriver.”

“This isn’t a cost-cutting exercise or an assessment of individuals’ performance,” said Prince. Adding, “it's about defining how a world-class, high-growth company operates and creates value in the agentic AI era.”

Adding to how deeply AI is involved in company work, Prince noted that “for team members in R&D, 97% use AI coding tools powered by the same Workers developer platform we shop to our customers.”

For Cloudfare, the majority of these reductions and restructuring charges will be incurred by Q2 2026, with the plan to evolve into an Agentic AI operating model expected to be in place by Q3 2026. Also, noting that actual costs may be different from these initial estimates.

Cloudflare Q1 2026 earnings analysis

Cloudflare, a cloud connectivity company, showed impressive top-line growth in Q1, reporting $639.8 million in revenue. 

“AI is driving a fundamental re-flatforming of the Internet and a paradigm shift in how software is created and consumed; it’s shaping up to be the biggest tailwind we’ve ever seen in Cloudflare’s history,” said Prince in the company earnings release.

But it also posted an Operating Income loss of $62.0 million, compared to $53.1 million in Q1 2025. The costs of maintaining a global network are reflected in squeezed gross margins, which fell to 71% from 76% a year ago.

Cloudflare is not alone in this pivot.

Meta recently identified that AI was the primary driver of workforce reductions as funds were reallocated to advancing AI infrastructure.

And this is not limited to the technology sector. 

Marcus Lemonis, CEO of Bed Bath & Beyond, also noted during the company’s recent earnings call that the one-stop household shop will leverage AI for growth, which will result in job reductions.

And now, despite a 48% stock gain over the last year, Cloudflare’s stock is now down 0.52% year to date, with a 23% drop in a single day reflecting skepticism over AI replacing human expertise.

Related: Costco adds new exclusive dessert tied to viral trend

Palantir Technologies and Alphabet have both become investor darlings as the AI boom reshapes entire industries. 

While GOOGL stock is up 273% since May 2023, PLTR stock is up a whopping 1,340%.

But with lofty price tags attached to both, a logical question emerges: which tech stock is the better buy right now?

The answer depends on which measuring stick you use. And one particular metric flips the conventional wisdom on its head.

Both tech stocks look expensive at first glance

Neither Palantir (PLTR) nor Alphabet (GOOGL) is cheap in the traditional sense. Both AI stocks trade at premiums that would make a value investor wince.

• Palantir, which closed at $137.80 on May 8, 2026, carries a forward price-to-sales (P/S) ratio of 38.85x, a steep multiple by almost any standard.
• Alphabet, which closed at $400.80 on the same day, trades at a more modest forward P/S of 9.56x.

So on revenue-based multiples, Palantir looks significantly pricier.

The same story plays out on earnings. Palantir's forward price-to-normalized earnings ratio is 87.41x, compared to Alphabet's 32.07x. Again, Palantir commands the steeper premium.

More Palantir: 

• Morgan Stanley resets Palantir stock forecast
• Palantir CEO makes blunt AI claim and investors should care
• Veteran analyst drops bold take on Palantir Anthropic situation

Both companies have earned those premiums. Over the past three years, PLTR and GOOGL shares have generated stellar returns for investors willing to hold through the volatility. 

But past returns don't make future entry points automatic bargains.

The 1 metric where Palantir wins on value

Here is where things get interesting.

Look at the NTM market cap-to-free cash flow multiple, essentially, how much investors are paying for every dollar of free cash flow a company is expected to generate over the next 12 months.

Palantir's multiple sits at 70.29x, while Alphabet's FCF multiple is much higher at a staggering 335.01x.

• Alphabet investors are paying more than four times as much per dollar of forward free cash flow as Palantir investors are.
• Free cash flow matters because it represents the real money left over after a company pays its bills and invests in growth.
• It is the lifeblood of shareholder returns—dividends, buybacks, and reinvestment all flow from it. Paying 335x for it is a bold bet.

Why is Alphabet's multiple so stretched? The company is spending aggressively to gain traction in the AI segment.

In the first quarter of 2026, Alphabet reportedcapital expenditures of $35.7 billion, predominantly for building out AI infrastructure. 

Management also raised its full-year 2026 capital expenditure guidance to $180 billion to $190 billion and warned that 2027 spending will increase further. 

Related: Alphabet to invest $40 billion in thriving AI company

All that spending pressures near-term free cash flow, inflating the multiple even as revenue soars.

Alphabet's Q1 free cash flow came in at $10.1 billion, solid in absolute terms but modest relative to the company's massive market cap, given the pace of reinvestment.

Palantir's FCF is rapidly expanding

Palantir tells a very different story on the cash generation front.

In the first quarter of 2026, Palantir generated $899 million in operating cash flow and $925 million in adjusted free cash flow, representing a 57% free cash flow margin. The company ended the quarter with $8 billion in cash on hand.

To put that in perspective: Palantir's quarterly free cash flow is now larger than its total quarterly revenue was just one year ago.

Chief Executive Officer Alex Karp made exactly that point on the company's earnings call and stated.

"Our free cash flow this quarter is larger than our revenue a year ago in the same quarter."

That kind of cash-generation efficiency is rare in a company growing this fast. Palantir grew total revenue85% year-over-year in Q1 and guided to 71% full-year growth for 2026, all while posting a 60% adjusted operating margin.

Stellar growth, but very different capital strategies

The core distinction between these two companies is how they deploy capital.

Alphabet is spending at an almost unprecedented scale to build AI infrastructure, betting that the investment will pay off in cloud revenue and search dominance. 

That strategy may prove correct given Google Cloudrevenue surged 63% year-over-year to $20 billion in Q1, and its cloud backlog nearly doubled sequentially to $462 billion. But the bill is enormous, and it weighs on near-term free cash flow.

Palantir, by contrast, runs lean.

The company famously operates with a tiny sales force—Karp noted on the earnings call that roughly seven salespeople are doing the work a typical company would assign to 7,000.

That operational discipline flows straight to the bottom line and into free cash flow.

Neither approach is wrong. They simply reflect different stages and strategies. But for investors hunting for relative value in the AI space, the free cash flow metric hands Palantir a clear edge over Alphabet at current prices.

Related: Palantir CEO issues blunt warning to 'AI slop' competitors

Rising grocery and restaurant prices are reshaping consumer behavior nationwide, with 27% of Americans admitting they have skipped meals to save money, according to a Credit Karma survey.

That shift is creating new opportunities for restaurant chains competing for budget-conscious consumers, particularly during breakfast hours, where value and convenience increasingly drive traffic.

Caribou Coffee is the latest chain to betting on the trend.

Caribou Coffee launches new Everyday Value Menu

Caribou Coffee has introduced a new Everyday Value Menu featuring breakfast and beverage items priced at $4 or less, according to a company press release.

The new lineup includes:

• $2 small brewed coffee
• $3 Blueberry Muffin
• $3.50 small Cold Press coffee
• $4 Bacon Breakfast Sandwich: A new bacon, scrambled egg, and melted cheddar cheese on a toasted English muffin

The Everyday Value Menu is now available at participating Caribou Coffee locations nationwide and can be ordered in-store, at the drive-thru, and through the company's app for pickup and delivery. 

"At Caribou, we're committed to creating a consistent, high-quality experience every time someone walks into one of our coffeehouses, with a range of options that fit into their day," said Caribou Chief Commercial and Strategy Officer Matt Reiter in a statement. "The Everyday Value Menu expands the ways we do that and creates even more flexibility and value for guests."

Why value menus are becoming more important

Restaurant chains across the industry are increasingly leaning on discounts, bundles, and lower-priced offerings as inflation continues to pressure consumer spending.

Prices for food away from home increased 3.8% in the 12 months ending March 2026, according to recent data from the U.S. Bureau of Labor Statistics.

At the same time, restaurant traffic has softened as consumers become more selective about where and how often they spend money.

Foodservice traffic declined 1% in the quarter ending June 2025, as diners cut back on restaurant visits, according to Circana. However, value-menu traffic rose 1%, marking the first positive growth for the category in the last three years.

"Value buyers are 33% more likely than non-value buyers to purchase value menu items when visiting other restaurant chains, indicating they actively seek out deals across various brands," said Circana Senior Vice President and Industry Advisor Food and Foodservice David Portalatin.

Breakfast remains one of the most competitive dayparts in the restaurant industry because it generates habitual weekday traffic and often delivers higher-margin beverage sales.

Coffee and breakfast items also tend to carry stronger profit margins than many lunch and dinner offerings, making value-focused breakfast promotions particularly attractive to restaurant operators trying to balance affordability and profitability.

That profitability dynamic explains why breakfast has become increasingly important for restaurant chains.

More coverage by Fernanda Tronco on food industry news:

• Fast-growing breakfast chain sees sales jump after menu revamp
• McDonald’s drops 6 new drinks and a surprising fashion collab
• 76-year-old burger chain takes on McDonald’s Happy Meal
• McDonald’s is eliminating a popular customer perk nationwide

Restaurants typically operate on thin net margins of around 3% to 6% according to industry data from Toast, 

Drinks, however, can deliver significantly higher margins, often between 60% and 80%, while food generally delivers lower gross margins of approximately 65 to 70%, according to KitchenNmbrs.

Fast-food chains expand breakfast value deals

Caribou Coffee joins several major chains that have recently expanded low-cost breakfast promotions amid intensifying competition for value-focused diners.

Between 2020 and 2025, menu prices at 16 major restaurant chains, including IHOP (DIN), Denny's, Cracker Barrel (CBRL), and Waffle House, increased by an average of 39%, according to FinanceBuzz. That compares with a national inflation rate of roughly 22% during the same period.

In response, restaurant chains across the industry have introduced competitive breakfast deals to attract cost-conscious consumers:

• McDonald's: Launched its McValue menu with $4 Breakfast Meal Deals and Under $3 Menu, according to The Street and the McDonald's website.
• Wendy's: Offers Breakfast Biggie Deals and Meal Deals, according to the Wendy's website.
• Taco Bell: Introduced a Breakfast Crunchwrap Combo, according to the Taco Bell website.
• Dunkin': Promotes the $6 meal deal, according to the Dunkin' website.

Still, expanding breakfast service comes with operational risks for restaurant chains already navigating weaker traffic and tight margins.

Fast-casual chain Portillo's recently slowed its restaurant expansion plans and ended its breakfast pilot after testing the program in additional Chicago-area locations.

"There's plenty of restaurant companies out there that have tried to expand to breakfast, and it hasn't worked," said Portillo's CEO Michael Osanloo in an earnings call.

As inflation continues reshaping consumer spending habits, restaurant chains are expected to keep competing aggressively on value, especially during breakfast hours, where affordability and convenience remain key drivers of consumer traffic.

Related: McDonald’s is eliminating a popular customer perk nationwide

The company positioned itself as a major player in enterprise infrastructure software following its 2023 acquisition of VMware.

The stock has gained 22.64% in the past month, according to Yahoo Finance at the time of writing, Saturday morning, May 9. Meanwhile, the SPDR S&P 500 index (SPY) is up 9.11% in the same period.

Broadcom’s rally started with the company’s extension of its partnerships with Google and Anthropic on April 6.

Another key move was Broadcom's extension of its partnership with Meta (META). Broadcom will deliver technology supporting Meta Training and Inference Accelerator (MTIA) chips, with plans to extend through 2029.

Intel’s earnings boosted confidence in the semiconductor sector.

Broadcom’s latest announcement also pushed the stock higher.

Broadcom unveils VMware Cloud Foundation 9.1

On May 05, Broadcom unveiled VMware Cloud Foundation (VCF) 9.1, an infrastructure platform for production AI workloads.

According to the company, VCF 9.1 enables enterprises to deploy inference and agentic AI applications at significantly lower cost, with enhanced security and the freedom to choose GPU and CPU hardware.

Broadcom says VMware Cloud Foundation 9.1 benefits include:

• Up to 40% reduction in server costs for clusters running a mix of AI and non-AI workloads.
• Up to 39% lower storage total cost of ownership through enhanced compression and deduplication for AI data pipelines.
• Up to 46% reduction in Kubernetes operational costs for running AI workloads at scale.
• 4x faster cluster upgrades and 2x increased fleet capacity to rapidly scale AI infrastructure.
• All statistics are based on internal Broadcom estimates or test results and are subject to change.

It is unsurprising that this announcement caused the stock to move up. We can get a clearer picture by looking at Broadcom’s latest Form 10-Q. It shows that revenue can be divided into two segments: semiconductor solutions and infrastructure software. 

Of the total revenue of $19.3 billion, $12.5 billion came from semiconductor solutions and $6.8 billion came from infrastructure software. However, if we take a closer look, we’ll see that the cost of revenue, research and development, and other expenses are much higher for the semiconductor segment.

More Tech Stocks:

• BofA resets Google stock price target after earnings smasher
• Bank of America resets Microsoft stock forecast after earnings
• Goldman Sachs resets Nvidia stock forecast ahead of earnings

This is best shown through operating income, which was $5.3 billion for infrastructure software and $7.5 billion for semiconductor solutions. Or to put it plainly, Broadcom strengthened its most profitable revenue segment with the latest release.

In a research note shared with me, Goldman Sachs analyst James Schneider and his team provided their opinion on what they call the Agentic Economy. As Broadcom plays a big role in the AI space, they also updated their opinion on Broadcom stock. 

Goldman Sachs says AI agents can lift global token consumption

The team believes Agentic AI could shift token consumption. They estimate that consumer AI agents could increase global consumer token consumption 12 times by 2030.

They estimate approximately 23 billion AI queries per day by 2030, up from approximately 5 billion in 2025. They see that up to 30% of these queries will be directed to agents across search, shopping, travel, email, and other personal productivity functions.

Analysts estimate that enterprise AI agents will increase global enterprise token consumption by 24 times by 2030 and by 55 times by 2040. Schneider wrote: “Enterprise adoption of agentic AI is still early: while surveys suggest 70–90% of enterprises are experimenting, less than one-quarter are scaling agents.”

Related: Goldman Sachs resets Nvidia stock forecast ahead of earnings

The team said they see a clearly positive impact on semiconductor companies from ongoing capital expenditures by hyperscalers and LLM providers. Analysts believe that falling token costs will make token-intensive use cases economically viable, thereby increasing the addressable compute market.

The team believes that more hyperscalers and LLM model providers will turn to Broadcom to deliver cost-optimized chip solutions tailored to their specific workloads.

Schneider reiterated a buy rating for Broadcom stock and the target price of $480, based on a 30 multiple of his normalized EPS estimate of $16.

Analysts noted key downside risks for Broadcom:

• Slowdown in AI infrastructure spending,
• Share loss in the custom compute franchise,
• Persistent inventory digestion in non-AI.
• Increased competition in VMware.

Related: Goldman Sachs sets jaw-dropping AMD stock price target after earnings

"Today, out of 800,000 restaurants in the U.S., about 100,000 serve Italian food. But while the bulk are pizzerias and casual restaurants, there’s also a significant component of fine dining restaurants," Krishnendu Ray, director of NYU’s Food Studies program and author of "The Ethnic Restaurateur," told National Geographic.

Meanwhile, there are about 40,000 each of Chinese and Mexican restaurants, with far fewer fine dining options among them.

Americans eat a lot of Italian food, according to data from the National Restaurant Association (NRA).

"Sixty-one percent of the 1,000 people surveyed by the NRA said they eat Italian food at least once a month, and 26% said they eat it a few times a year. By comparison, the other two of the 'big three' ethnic cuisines in the United States, Mexican and Chinese, were eaten at least once a month by 50% and 36% of those surveyed, respectively, and a few times a year by 31% and 42% of respondents, respectively," the NRA shared.

Despite the demand for Italian food, a once-thriving chain, Romano's Macaroni Grill, has closed more than 85% of its restaurants, leaving the chain with only nine remaining locations.

Macaroni Grill was meant to be an Olive Garden rival

Romano's Macaroni Grill suffered a slow decline.

The chain began with a strong pedigree, having been founded in San Antonio in 1988 by restaurateur Phil Romano, the creator of Fuddruckers. It was acquired by Chili’s owner Brinker International the following year.

"Positioned as an Olive Garden competitor, Romano’s served standard Italian fare and leaned into its Italian theme: It staffed opera singers and played Italian language lessons in its restrooms," Restaurant Business reported.

The chain grew quickly under Brinker, peaking at 237 locations in 2006, most of them company-owned, according to data from Restaurant Business sister company Technomic.

Brinker sold the chain to private-equity firm Golden Gate Capital in 2008 for $131.5 million, a price that was later adjusted to $88 million after the economy crashed.

At its peak, Macaroni Grill built a strong business around its "make-your-own-pasta" offering.

Customers were handed a sheet offering a number of choices, and they could check off boxes to create their own custom pasta dish. That offering was paired with fresh bread, and tables were topped with a heavy white paper on which servers wrote their names.

What went wrong with Romano’s Macaroni Grill

While Romano's Macaroni Grill has struggled, rival Olive Garden has thrived with a simple playbook.

"Olive Garden has simplified its restaurants and its promotional calendar. It has used fewer discounts, relying on 'everyday value' marketing while emphasizing lunch to improve sales that way," according to Restaurant Business.

The chain also made a subtle, but important operating change.

"It has also focused more on its takeout business, which has increased considerably in recent years. Takeout now represents nearly 14% of Olive Garden sales. Few casual-dining restaurants can boast such levels," the industry website shared.

Romano's Macaroni Grill filed for Chapter 11 bankruptcy in 2017, immediately closing 37 locations.

More Restaurants 

• A 30-year-old restaurant has closed all locations
• After bankruptcy, Hooters closes restaurants, fights for survival
• Iconic Las Vegas Strip restaurant closes without warning

At the time, it was owned by Arizona-based RedRock Partners LLC, which acquired the chain from Ignite Restaurant Group Inc. in 2015 for $8 million.

In its filing, Macaroni Grill cited a decrease in sales and an increase in labor and commodity costs, which hurt profits, Nation's Restaurant News reported.

Nishant Machado, the company’s acting CEO at the time of the filing, blamed the chain’s problems on “an overall downturn for the casual dining industry,” including a preference of customers toward “cheaper, faster alternatives.”

Romano's Macaroni Grill survived, but still struggled

While Romano's Macaroni Grill survived its Chapter 11 bankruptcy, it has been in steady decline since the filing.

"The pandemic was devastating for Romano’s. It closed half of its locations in 2020, bringing its footprint to 43 restaurants. And unlike other casual-dining chains, it did not enjoy a post-COVID rebound," Restaurant Business reported in December 2025.

Sales have declined every year since as it continued to close locations.

In 2024, the chain dropped off Technomic’s ranking of the top 500 largest restaurant chains in America by sales.

Macaroni Grill's struggles, however, are not a comment on the health of restaurants in a broader sense.

“The restaurant industry is notoriously competitive,” Sara Senatore, a Bank of America analyst who specializes in restaurants, told Investopedia. “And in the current environment, what we're seeing is a return to intense competition.”

Restaurant Business Editor-in-Chief Jonathan Maze said the chain's decline has been the result of management decisions, not the economy.

"The story of Mac Grill is in many respects the story of the decline in casual dining. For years, the Italian chain had been a popular concept, sort of a next-generation Olive Garden," he wrote in a column on NRN.

The chain's struggles, he noted, have been consistent no matter who has been in charge.

"Mac Grill’s problems have been consistent, date back a decade, and have plagued multiple owners and CEOs," he added.

Macaroni Grill, however, has not given up. The company has added a quick-serve concept, Twisted Mac, and is still selling franchises.

"Whether you are looking for the prestige of a legacy national brand or the high-growth potential of a modern QSR, our portfolio offers two distinct ways to bring authentic Italian hospitality to your market. Both brands are powered by the same commitment to quality, generosity, and the Guest First philosophy," the company shared on its website.

Related: Mexican chain near bankruptcy, 47 restaurants in danger

Walking into a CVS Health earnings report in that environment felt like bracing for bad news. The bad news, however, didn't come.

CVS Health (CVS) posted first-quarter 2026 adjusted EPS of $2.57, according to its earnings report, blowing past both Morgan Stanley's $2.17 estimate and the $2.18 consensus by 40 cents.

The company raised its full-year adjusted EPS guidance by 30 cents at the midpoint. And the number that matters most to managed care investors — the medical benefit ratio- came in significantly better than expected.

"With another MLR beat in MCO-land, we view the shares should grind higher on the print," Morgan Stanley (MS) said in a note shared with me at TheStreet.

That is a measured but meaningful statement from a firm that has been navigating a complicated healthcare sector all year.

CVS Health's Q1 2026 results beat across the metrics that matter most

The headline numbers from CVS's May 6 earnings release:

• Total revenues of $100.4 billion, up 6.2% year over year
• Adjusted EPS of $2.57, beating consensus by 39 cents
• GAAP diluted EPS of $2.30
• Cash flow from operations guidance raised to at least $9.5 billion from $9.0 billion
• Full-year adjusted EPS guidance raised to $7.30 to $7.50 from $7.00 to $7.20
  Source: CVS Health Corporation first-quarter 2026 results earnings release..

The medical benefit ratio came in at 84.6%, well below the Morgan Stanley estimate of 86.0% and the 86.2% consensus, according to the note shared.

For managed care investors, the MLR is the single most watched number in any quarterly print - it measures the share of premium revenue spent on medical claims. Lower is better. 84.6% is meaningfully better.

My read of that 160-basis-point beat versus consensus is that CVS's medical cost management held up more effectively than the market feared heading into the quarter.

In an environment where peers have been struggling with elevated utilization, that is a genuine competitive signal.

CVS Health Services segment delivered a surprise most analysts didn't see coming

Beyond the MLR, the segment that commanded the most investor attention was Health Services, CVS's pharmacy benefit management and specialty care division, which has been under pressure from PBM industry volatility.

Health Services adjusted operating income growth came in at -7.1% year over year. That sounds weak until you compare it to what was expected: consensus was modeling negative 16.7%, and Morgan Stanley's own estimate was negative 18.7%, according to the Morgan Stanley note shared with me at TheStreet.

More Health Care:

• If your Medicare plan was canceled, do this now
• Health care costs are the wild card in year-end tax planning
• 22 million Americans hit by ACA health insurance cliff after vote fails

My review of the segment gap provides the key insights here. CVS didn't just beat Health Services. It beat by roughly 1,000 basis points versus consensus.

Morgan Stanley management noted the result reflects "early recognition of value that was previously expected to occur in the second quarter." Even excluding that timing benefit, results modestly exceeded CVS's own internal expectations.

The one soft spot was Pharmacy and Consumer Wellness, where adjusted operating income growth came in at negative 8.8% against a consensus expectation of negative 4.0%. Management attributed the miss partly to seasonal factors, flu dynamics, and weather-related headwinds, timing issues, rather than structural deterioration.

CVS also raised guidance and expanded medical membership

The guidance raise is the part of the CVS story that Morgan Stanley wants investors to focus on.

• Full-year 2026 adjusted EPS guidance is now $7.30 to $7.50, up from $7.00 to $7.20
• Cash flow from operations guidance rose to at least $9.5 billion
• Medical membership of approximately 26.0 million, up from the prior 25.6 million forecast. Still reflecting a 2% year-over-year decline, but meaningfully better than the 3.5% decline previously embedded in guidance.
  Source: CVS Health Corporation First-Quarter 2026 Results.

What Morgan Stanley flagged as notable is that the 30-cent midpoint guidance raise does not fully pass through the 40-cent first-quarter beat. That gap implies CVS is building in conservatism for the rest of the year, specifically holding its full-year MLR target unchanged at 90.5% plus or minus 50 basis points. 

The company is not assuming the favorable first-quarter medical cost experience repeats automatically. That conservatism, in this environment, reads as credibility.

What CVS's beat means for investors

CVS Health CEO David Joyner framed the company's position in direct terms, as seen in the earnings release.

"We build trust every day in communities across the country by providing better access, affordability, and care to nearly 185 million people," Joyner said. "Our positive performance is driven by strong execution across our enterprise."

For investors, the first-quarter print resolves at least one major overhang. The fear heading into CVS earnings was that medical cost trends were deteriorating faster than the company's pricing could absorb. The 84.6% MLR says that fear, at least for now, was overblown.

Morgan Stanley's "grind higher" language is deliberate. This is not a call for a dramatic re-rating. It is a call for a stock that has been penalized by managed-care-sector anxiety to begin recovering as earnings evidence accumulates.

One strong quarter does not erase a difficult environment. But it changes the narrative, and in this sector, narrative shifts matter.

Related: Bank of America resets future estimates for CVS post earnings

But buried inside the company’s earnings call was a warning that should matter to every prospective homebuyer and seller watching the spring season unfold across the country. CEO Varun Krishna told investors that the expected second-quarter pickup in housing activity is simply not materializing in the data Rocket is seeing on the ground.

The blunt assessment came alongside a second-quarter revenue forecast that was 6.6% below analysts' projections, signaling that even the strongest players in the mortgage industry are bracing for a tougher stretch ahead.

Rocket CEO Krishna warns spring homebuying season is falling short

Krishna did not sugarcoat his read on where the housing market is heading in the coming months, telling investors on the May 7 earnings call that industry forecasts calling for a second-quarter volume increase do not match what Rocket is observing. 

“Our real-time market indicators suggest that the mortgage market will not see the same sort of uplift in Q2 that historical seasonality would typically suggest,” Krishna told investors during the earnings call. “Our guidance reflects this reality.”

"Obviously, what happened later in the quarter is that a major conflict in the Middle East exploded. With the war, oil prices went up, inflation pressure increased, and then rates moved up. That certainly changed some of the trajectory as we moved into Q2," said Varun Krishna, CEO, Rocket Companies.

Mortgage rates had briefly dipped below 6% in February 2026, sparking renewed buyer interest and early-season momentum across the country. The conflict in Iran reversed that trajectory, pushing 30-year fixed rates back up to 6.37% as of May 7, 2026, according to Freddie Mac data. 

That swing sent prospective buyers back to the sidelines during what is traditionally the busiest stretch of the real estate calendar.

Rocket’s second-quarter revenue guidance of $2.7 billion to $2.9 billion came in with a midpoint of $2.8 billion, which trailed Wall Street’s consensus estimate of $3.0 billion by a meaningful margin, Seeking Alpha reported.

Brian Brown, Rocket’s president and chief financial officer, framed the cautious second-quarter outlook in direct terms while addressing investors during the call.

Rocket Companies delivers its most profitable quarter in four years

The housing market warning came alongside financial results showing Rocket firing on nearly every metric Wall Street tracks.

Total net revenue hit $2.94 billion for the first quarter ending March 31, 2026, representing a 127% jump from the $1.1 billion the company posted in the same period a year earlier,the company’s SEC filing showed.

Adjusted net income reached $422 million, compared with just $80 million in the first quarter of 2025, while adjusted EBITDA surged to $738 million with margins expanding to 26% from 23% in the prior quarter.

Adjusted earnings per share landed at $0.15, beating the Wall Street consensus estimate of $0.12 by more than 25% and marking the company’s strongest quarterly profit since 2022, Investing.com reported.

Rocket’s $500 million AI bet is accelerating the Mr Cooper integration by a full year

Krishna attributed much of Rocket's outperformance to the company's $500 million investment in AI infrastructure, which he said allowed the company to integrate Mr Cooper a full year ahead of the originally planned timeline.

Rocket announced the acquisition in March 2025 and closed it on October 1, 2025; the integration milestones, including reaching the $400 million expense synergy target, are now expected by the end of 2026, a year earlier than the original end-of-2027 deadline.

More Real Estate:

• Why selling a home to your child for a dollar can backfire
• Commercial Real Estate Outlook 2026: Analysts See Signs of Recovery
• Redfin says mortgage rates, profits are hitting real estate now

The company set a $400 million expense synergy target tied to the Mr Cooper deal, with an original deadline of the end of 2027, but Brown told investors that Rocket now expects to reach that figure by the end of 2026, a full year ahead of schedule. 

Brown credited the accelerated integration timeline with decreasing fixed costs and steadily improving operating leverage across the combined Rocket and Mr Cooper platform.

Rising mortgage rates and geopolitical uncertainty are squeezing the 2026 spring market

Krishna’s warning about the spring season echoes a broader industry concern that the housing recovery many forecasters predicted for 2026 is being delayed by forces outside anyone’s control.

The 30-year fixed mortgage rate averaged 6.37% as of May 7, up from 5.87% in February before the Iran conflict disrupted global energy markets and pushed bond yields higher, Freddie Mac data showed.

Sarah DeFlorio, vice president of mortgage banking at William Raveis Mortgage, told CBS News she expects rates to land between 6.125% and 6.25% by the end of May 2026, while Jordan Del Palacio, a loan partner at Churchill Mortgage, projected rates could reach as high as 6.50% if uncertainty around the conflict persists.

Rocket’s record pre-approvals signal pent-up buyer demand waiting for rate relief

Despite the cautious second-quarter outlook, Brown disclosed that Rocket is seeing record-high levels of pre-approved purchase customers, a data point that suggests demand for homeownership remains strong even as elevated rates hold back actual transactions. 

Home equity loans and jumbo mortgage originations both more than doubled compared to the year-ago period, signaling that existing homeowners are tapping into their property values.

“They just need a little bit of cooperation from rates,” Brown told investors on the call, summarizing a dynamic that millions of sidelined homebuyers across the country understand firsthand. 

The National Association of Realtors has estimated the national housing shortage at roughly 4.7 million homes, a structural imbalance that continues to underpin pricing and constrain inventory even as buyer sentiment wavers.

Krishna summed up Rocket's position with a two-word message, “Stronger Rocket”, that doubled as the company's unofficial earnings slogan this quarter, telling investors and analysts alike that Rocket is built to thrive in the current conditions rather than wait for better ones. 

Related: Americans face major opportunity after housing market shift

The president of Burger King published his phone number and waited for the calls to come in. What happened next shows up in the chain's latest earnings report.

"We've been listening to our guests a lot lately," Curtis told Jim Cramer on CNBC's Mad Money on May 8. "I've personally taken 1,800 calls from guests, and we got over 70,000 incoming calls."

The calls were not a marketing stunt that stayed in the marketing department. They fed directly into product decisions.

Customers told Curtis what they thought of the Whopper, what was missing, and what needed to change.

The result is what CNBC describes as the "Elevated Whopper," a new glazed bun, creamier mayo, and clamshell packaging that CEO Joshua Kobza said is "driving positive guest feedback and the highest Whopper average unit volumes in over three years."

Curtis took so many calls that on weekends his wife banned him from taking them inside the house. "My wife wouldn't let me in the house and take calls for hours on end," he said. He took them on the porch instead.

Burger King's same-store sales growth and Q1 earnings beat

The strategy is showing up in the numbers. Restaurant Brands International, Burger King's parent company, reported better-than-expected Q1 2026 results. Burger King U.S. posted 5.8% same-store sales growth, according to CNBC.

The customer feedback effort also extended to restaurants and operations. When a caller from Great Falls, Montana told Curtis about a broken sign at his local Burger King, the company used AI to scan its entire U.S. network and identified 81 restaurants with broken or missing signs, many of which have since been fixed, according to Entrepreneur.

Beyond the Whopper, the customer focus is helping the chain attract families.

After launching King Junior meals and SpongeBob-themed promotions, kids meal sales rose approximately 40% over the past six months.

Curtis said families are a core part of the turnaround because they require both product quality and a restaurant environment worth trusting.

Why the Elevated Whopper changes matter for Burger King's brand

The Whopper is not just a menu item. It is Burger King's identity. When the flagship product underperforms, every other effort at the chain, marketing, promotions, value offers, restaurant upgrades, faces a higher barrier. Fixing the sandwich first gives everything else a stronger foundation.

The changes are subtle but deliberate. The new glazed bun gives the burger a more finished appearance. The creamier mayo improves texture and taste. The clamshell packaging keeps the sandwich intact and presents it more cleanly.

None of these changes is dramatic on its own, but together they create a noticeably different eating experience, according to Restaurant Business.

Curtis going viral by taking a big bite of the Whopper on video, and joking that it "only needed a napkin," added a layer of authenticity that a traditional ad campaign could not have manufactured.

The moment contrasted sharply with McDonald's CEO Chris Kempczinski's social media video of the Big Arch, which was widely criticized as staged.

What the Burger King turnaround playbook means for the fast-food industry

The broader lesson from Burger King's approach is one the entire restaurant industry is watching. In a market where inflation has made consumers more selective and value-driven, brand perception matters enormously. A company that can demonstrate it is genuinely responding to what customers say has a differentiated story to tell.

Burger King is leaning into that. The chain retired its "Creepy King" mascot after customers said the marketing felt disconnected from the product. Franchisees voted 97% in favor of raising their marketing fund contribution to 4.5% of revenues, tied to profitability metrics, suggesting they believe in the direction, according to Restaurant Business.

"The act of listening and acting over the last few years has put us in a more competitive place," Curtis told Nation's Restaurant News. "We have targeted not what we thought we should be doing but what our guests are telling us we should do."

Key figures from Burger King's Q1 2026 results and Whopper turnaround:

• Burger King U.S. same-store sales growth in Q1 2026: 5.8%, Restaurant Brands International beat earnings expectations, according to CNBC
• Customer calls received: over 70,000 total; Curtis personally took 1,800, CNBC confirmed
• Whopper unit volumes: highest average in over three years since the Elevated Whopper launched, CNBC noted
• Kids meal sales growth: approximately 40% over the past six months after King Junior meals and SpongeBob promotions, CNBC confirmed
• Broken signs identified using AI after customer tip: 81 restaurants across the U.S., according to Entrepreneur
• Franchisee marketing fund contribution increase: to 4.5% of revenues, with 97% of operators voting in favor, according to Restaurant Business

Whether Burger King's momentum can last

The immediate results are strong. But the fast-food industry is littered with turnarounds that started well and stalled when the novelty of a new product wore off. The test for Burger King is whether the sales lift from the Elevated Whopper is structural or whether it represents an initial curiosity bump that fades as competitors respond.

Curtis and his team seem aware of that risk. The customer call program is not framed as a one-time initiative but as an ongoing feedback loop.

The Whopper by You platform, which allows customers to submit ideas for Whopper variations, has already produced multiple limited-time entries and is targeting new demographics, particularly women and Gen Z, according to Restaurant Business.

The most important signal from Burger King right now is not any single sales figure. It is that the company has found an approach to customer engagement that is generating earned media, operational improvements, and product improvements simultaneously.

If Curtis keeps taking the calls and keeps acting on what he hears, Burger King has a genuine platform for sustained relevance in a market that rarely rewards standing still.

Related: Burger King’s menu adds wild new take on the classic burger