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(Bloomberg) -- The US Justice Department has closed its antitrust probe into Paramount Skydance Corp.'s $110 billion purchase of Warner Bros. Discovery Inc., according to people familiar with the decision.

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The federal antitrust agency didn't require any changes to the deal, which it had been reviewing for the past several months, according to the people, who asked not to be identified discussing a decision that hasn't been publicly announced.

A group of state attorneys general, led by California, have also been probing the transaction, which would combine two of the five largest Hollywood studios. The states are preparing to sue to block the merger, Bloomberg previously reported.

Justice Department didn't have an immediate comment. Paramount didn't immediately respond to an email seeking comment.

The Justice Department's clearance was expected. The agency under President Donald Trump hasn't sought to block a deal, instead preferring to enter into settlements or allowing mergers to proceed with no conditions.

Paramount head David Ellison met with top antitrust officials, including Acting Assistant Attorney General for Antitrust Omeed Assefi, last month about the deal, according to several people familiar with the meeting. Ellison is the son of Oracle Corp. co-founder Larry Ellison, who is close to Trump.

At the meeting, company executives and lawyers argued the deal would benefit Hollywood and allow the merged entity to better compete against the online streaming services like Netflix Inc., Amazon.com Inc.'s Prime Video and Alphabet Inc.'s YouTube.

Combining Warner Bros. and Paramount would join the two movie studios, two major news networks in CNN and CBS, two rival streaming services with HBO and Paramount+ and dozens of cable networks. Paramount beat out Netflix for the deal after a lengthy bidding war.

The acquisition faces major opposition from Democrats in Washington and many in Hollywood, with actors, directors, producers and writers arguing that the tie-up would result in fewer jobs, higher production costs and less choice for audiences.

Politico earlier reported the Justice Department move.

(Updates with additional details beginning in fifth paragraph.)

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Roku stock closes at its highest level since 2022 after a report the streaming technology maker is in sale discussions.

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In trading on Friday, shares of the YieldMax NFLX Option Income Strategy ETF (Symbol: NFLY) entered into oversold territory, changing hands as low as $8.72 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

In the case of YieldMax NFLX Option Income Strategy, the RSI reading has hit 28.6 — by comparison, the RSI reading for the S&P 500 is currently 53.9. A bullish investor could look at NFLY's 28.6 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.

Looking at a chart of one year performance (below), NFLY's low point in its 52 week range is $8.72 per share, with $19.27 as the 52 week high point — that compares with a last trade of $8.84. YieldMax NFLX Option Income Strategy shares are currently trading down about 0.8% on the day.

Find out what 9 other oversold stocks you need to know about »

Further NFLY Research:

Funds Holding NFLYInstitutional Holders of NFLYUtilities Dividend Stock List

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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We love it when a famous CEO buys a large chunk of his company’s stock.

In Jan 2022, Reed Hastings, then the Co-CEO of Netflix, bought 51,440 shares for nearly $20 million even though he already owned over 5 million shares.

This was his first open market purchase of Netflix shares ever. He didn’t even buy during the dark times of the financial crisis.

This big purchase made headlines and was analyzed on Twitter and Stocktwits by stock investors.

Insiders Buying En Masse

But what about when non-famous insiders buy their company’s stock, and when a bunch of them buy en masse?

This mass insider buying behavior is called a “cluster buy” and it is the strongest signal you can get in insider trading.

When one insider buys, he might be considered an optimist, especially when he’s the CEO, but when four or five insiders all buy at the same time?

Now that’s a powerful consensus.

But you’re not going to hear about the cluster buys from the media. There aren’t going to be headlines trumpeting the buys of a few corporate Directors and a CFO.

Nope. The cluster buy simply isn’t glamorous enough.

Investors, therefore, have to dig below the surface to find the insider cluster buys. But once you do, that’s where big rewards can be found.

Cluster Buying Sends the Strongest Signal Why do insiders spend so much of their money on their own companies’ stock when they already own a ton of shares already?

Greed!

Pure and simple.

The opportunity to make more money motivates people - even people who are already well off like highly paid CEOs and CFOs.

When insiders buy in a cluster, it’s because they all know something very good is going on at the company. Maybe it is a new product. Or contract. Or pending merger. Whatever the reason, they are all very confident that shares will be on the rise.

After all, who would buy more stock in a company if they knew it was sinking?  And why would there be several of them buying unless they didn’t collectively believe that their stock was a value?

When things at the company are THAT good, insiders don’t want to miss out when everyone else is cashing in. Call it insider peer pressure, if you will.

More . . .

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Buy These Insider Stocks Today

When in-the-know officers dip into their own pockets to buy shares of their own company, there’s only one reason: They expect the stock price to go up.

Because of their inside knowledge of anticipated contracts, mergers, product breakthroughs, and the like, insiders must report their trades to the SEC within 48 hours. Zacks has zeroed in on the best of these buys.

Our recommended insider buys are time-sensitive and normally closed to public view – but you can still see them until midnight Sunday, June 14.

Catch our selected insider trades right now >>

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Real Life Cluster Buying

The small regional and community banks have been overlooked on Wall Street since the Great Financial Crisis in 2008. But, in the 18 years since, most of these banks have gotten their balance sheets in order and are now thriving.

First Busey Corp. is a small-cap bank based in Champaign, Illinois. It focuses on central Illinois, metro St. Louis, and also has three branches in southwest Florida and one in Indianapolis.

However, in March 2025, it acquired Kansas-based CrossFirst Bankshares. CrossFirst had branches in cities not served by First Busey, including Dallas/Fort Worth, Denver and Phoenix. With the merger completed, First Busey now has 80 full-service locations across 10 states.

In Feb 2025, prior to the merger, two directors stepped in to buy shares. But after the acquisition, the insiders have continued to buy.

Like most stocks, shares of First Busey plunged after Liberation Day and the tariff uncertainty, in March and April 2025, presented a buying opportunity.

On May 23, 2025, three directors bought more shares and on June 12 and June 13, 2025, three directors stepped in to buy again.

And they have continued to buy, with directors buying in July and Sep 2025 and again this year, in May 2026.

Why do these insiders keep buying more shares?

First Busey is still cheap and revenue is expected to rise +10.1% this year.

Buy When the Insiders Buy

When high level insiders buy, they are required to report the purchases to the SEC within 48 hours of the trade. The trade then becomes public information.

Hedge funds and other professional investors routinely use this information to get an edge on their trades.

For most of us, though, it’s not easy to get access to the insider information.

While the media will tout the huge insider buys from celebrity CEOs like Reed Hastings’ Jan 2022 $20 million Netflix share purchase, you’ll almost never hear about the non-celebrity CEOs, or other top ranked officers when they buy their stocks.

Was anyone talking about all the buying at First Busey?

The challenge is getting easy and reliable access to all the insider trades and then figuring out which ones to buy.

Where to Find the Cluster Buys

Anyone can go on the SEC website and get the insider trading information, but it’s time consuming to search by individual companies.

Some investment firms collect the insider buying data and can provide it to you as a daily list. Have you ever seen one of those lists?  The sheer number of companies can be overwhelming.

And those lists don’t usually separate out the cluster buys, which sometimes take place on different days in the same week.

For example, if you’re getting daily insider updates, you may not realize that the CEO bought on Monday, but three directors bought on Tuesday. You may pass by those ‘hidden’ cluster buys without even realizing it.

Even if you got a list of the cluster buyers, how would you narrow it down to the stocks that are truly worth buying? If I’m going to buy when the insiders are buying, I want to buy only their top picks.

Today’s Hottest Insider Buys

Zacks' research team has developed a unique strategy to identify only those top picks insiders are scooping up.

We monitor selected insider buying activity at companies with strong earnings and valuations. Then we analyze:

• Who's buying? How much money are they putting in?

• When, if ever, have they bought shares in the past?

• Do they receive shares as part of their compensation, but still want more?

• Are we seeing "Cluster Buys"?

Very few stocks meet the demanding criteria of our Insider Trader portfolio >>

While not all our insider picks are winners, we recently closed gains of +70.6%, +44.6%, and +103.2%.¹

See the stocks we're currently holding for just $1. There's no obligation to spend a cent more.

Free Bonus: Just for exploring our insider picks, you can download Zacks' Special Report, 5 Stocks Set to Double, free of charge. These five buy-and-holds balance our more active Insider Trader. Each is the #1 favorite of a Zacks expert for its potential to jump +100% or more over the next year.

Important note: Access to the Insider Trader portfolio and 5 Stocks Set to Double is limited. This opportunity ends at midnight Sunday, June 14.

See our insider trades and download 5 Stocks Set to Double now >>

All the Best,

Tracey Ryniec

Insider Stocks Strategist

Tracey Ryniec, Zacks' insider and value strategist, is Editor in Charge of Insider Trader.

¹ The results listed aaabove are not (or may not be) representative of the performance of all selections made by Zacks Investment Research's newsletter editors and may represent the partial close of a position. Access grants you a comprehensive list of all open and closed trades.

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This article originally published on Zacks Investment Research (zacks.com).

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Apple AAPL is benefiting from the rapid expansion and diversification of the Services business, which has become a key growth driver of the company’s performance. In the second quarter of fiscal 2026, Services contributed 27.9% of total net sales, with revenues rising 16.3% year over year to $30.98 billion, which was a record in Apple’s history.

This robust performance was broad-based, with double-digit growth in both developed and emerging markets and new all-time revenue records across most Services categories. The Services segment now includes offerings such as Apple TV, Apple Music, iCloud, the App Store, Apple Pay and new enterprise solutions, all of which are supported by Apple’s vast installed base of over 2.5 billion active devices.

The company continues to integrate new features and expand the breadth of its services. Apple recently unveiled a range of AI-powered enhancements across its services, set to arrive with its 2027 software releases this fall. Key updates include richer Flyover views and Local Lists in Apple Maps, more flexible item-sharing in Find My and Apple Cash bill-splitting powered by Visual Intelligence.

Apple is also expanding video podcast support on Mac and tvOS, redesigning Shared Albums in iCloud and introducing a new Apple Fitness+ program. The updates aim to make Apple’s ecosystem more intelligent, personalized and collaborative while improving everyday experiences across navigation, payments, media, cloud storage and fitness services.

Apple’s Services business is on a strong upward trajectory, driven by ecosystem expansion, innovation and a focus on both consumer and enterprise needs. For the June quarter, management expects Services to grow at a similar year-over-year rate to the March quarter after removing the favorable impact from foreign exchange.

Apple Faces Stiff Competition

Apple is suffering from stiff competition from the likes of Netflix NFLX and Disney DIS. Both Netflix and Disney are expanding their footprint in domains like streaming and gaming.

Netflix is expanding its service offerings by investing in podcasts, live sports events and gaming, including a new kids’ gaming app called Netflix Playground. The company is also leveraging technology like AI to enhance content creation and user experience.

Disney is benefiting from its streaming segment, which has achieved a remarkable transformation, delivering sustainable profitability. The combined Disney+ and Hulu platform now generates consistent operating income, driven by disciplined pricing strategies and robust subscriber engagement. Entertainment SVOD revenues grew 13% year over year to $5.49 billion in the second quarter of fiscal 2026, while Entertainment SVOD operating income surged 88% to $582 million. The integration of Hulu content into Disney+ creates a comprehensive entertainment ecosystem that enhances customer retention and reduces churn.

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AAPL’s Share Price Performance, Valuation & Estimates

Apple shares have gained 8.8% year to date, underperforming the broader Zacks Computer and Technology sector’s return of 13.2%.

AAPL Stock PerformanceZacks Investment Research

Image Source: Zacks Investment Research

AAPL stock is trading at a premium, with forward 12-month price/earnings of 31.78X compared with the Computer and Technology sector’s 24.01X. AAPL has a Value Score of F.

AAPL ValuationZacks Investment Research

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for fiscal 2026 earnings is pegged at $8.75 per share, which has increased by a couple of pennies over the past 30 days. This suggests 17.29% year-over-year growth.

Apple Inc. Price and ConsensusApple Inc. Price and Consensus

Apple Inc. price-consensus-chart | Apple Inc. Quote

Apple currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Apple Inc. (AAPL) : Free Stock Analysis Report

Netflix, Inc. (NFLX) : Free Stock Analysis Report

The Walt Disney Company (DIS) : Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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Netflix, Inc. (NASDAQ:NFLX) was among the stocks Jim Cramer commented on, saying that tech stocks cannot be trusted to lead anymore. A caller inquired about the company's biggest headwinds and whether the stock is a buy, sell, or hold. Cramer replied:

Okay, I want to buy Netflix. The biggest headwind is that they went and got involved with trying to buy the Warner Brothers Studio, and everyone thinks, oh, they don't know what they're doing. I think they took the optionality that they had. They debated it. They made a decision, then they decided not to do it, because they're going to do fine. I think we're going to look back and think, wow, I bought it down 13%, not bad.

Photo by Souvik Banerjee on Unsplash

Netflix, Inc. (NASDAQ:NFLX) provides streaming entertainment, including TV series, films, documentaries, and games. During the June 2 episode, a caller inquired about what was holding the stock back, and Cramer responded:

Okay, so here's what's amazing… You and I are thinking alike. I saw it today at $83, and I said to myself, alright, I gotta do a piece about how this stock got down to $83. It shouldn't be, it shouldn't be down 11%. You are on to something. I am going to do it. I can't just say, yeah, I agree with you, because obviously that's not rigorous. But I think you're on to something, and I'm going to follow up on it, and we're going to get down to the bottom of it.

While we acknowledge the potential of NFLX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years

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Netflix, Inc. (NASDAQ:NFLX) is one of the Good Stocks to Invest in Now. Although the stock has declined roughly 25% since FQ1 2026 earnings, Wall Street's 12-month average price target suggests more than 41% upside from the current level.

​The company released earnings on April 17, following which the stock started losing value, pressured by cautious full-year 2026 revenue guidance. Netflix posted $12.25 billion in revenue ahead of the expected $12.17 billion and EPS of $1.23. Management maintained its full-year guidance of 12% to 14% revenue growth and a 31.5% operating margin.

​Despite the cautious outlook and decline in share price, analysts project significant upside due to the company's advertising tier scales and live sports business acceleration. For instance, recently, on June 4, Bernstein SocGen Group reiterated an Outperform rating on Netflix, Inc. (NASDAQ:NFLX) with a price target of $110. The firm noted that beneath the backdrop of declining share value lies the fundamental strength of Netflix. The firm highlighted that Netflix remains a utility subscription video-on-demand service at a low cost, and is underpenetrated in non-Anglophone markets.

​Management had also pointed towards significant room for growth in the earnings call, noting that the company currently only holds 5% of global TV viewership share.

Netflix Inc. (NASDAQ:NFLX) is a global streaming service offering TV shows, movies, documentaries, and interactive content. It operates a subscription model, produces "Original" content, and supports both ad-free and ad-supported viewing across devices.

While we acknowledge the potential of NFLX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.

READ NEXT: 9 Most Undervalued Foreign Stocks to Buy Now and 10 Most Undervalued US Stocks According to Hedge Funds.

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Netflix Inc. (NASDAQ:NFLX) is one of the best forever stocks to buy, according to analysts. On June 5, Netflix appointed venture capitalist Jay Hoag as chairman of the board, taking over from co-founder Reed Hastings.Jay Hoag Takes Over as Netflix Inc. (NFLX) Chairman Amid Focus on Advertising and Live Events

Hoag has been serving on the streaming giant's board since 1999, in addition to serving on the boards of Zillow Group and Peloton Interactive. He has served as Netflix's lead independent director, a role that the company no longer wishes to fill following his ascension to chairman of the board. Hoag takes over as chairman of the board, having played a critical role in Netflix's evolution from a DVD-by-mail business to the world's largest streaming platform.

He takes over at a time when the company is expanding its footprint beyond streaming content into advertising to pursue a new revenue stream. In addition, the company is venturing deeply into live programming while also investing in original content. The company has also heightened its focus on sports programming and interactive entertainment to enhance subscriber engagement on the network.

Netflix Inc. (NASDAQ:NFLX) is a global entertainment company that operates a subscription-based streaming service, offering on-demand access to a vast library of TV series, feature films, documentaries, mobile games, and live programming.

While we acknowledge the potential of NFLX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on thebest short-term AI stock.

READ NEXT: 8 Most Profitable Crypto-Exposed Stocks to Buy Now and 10 Best Robinhood Stocks Under $20 to Buy Now.

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In this episode of Motley Fool Hidden Gems Investing, Motley Fool contributors Tyler Crowe, Matt Frankel, and Lou Whiteman discuss:

Broadcom’s good earnings.Playing the expectations game in a volatile market.Stocks doing well in downtrodden industries.Listener questions: How will the SpaceX, Anthropic, and OpenAI IPOs impact cash on the sidelines and ETFs?

To catch full episodes of all The Motley Fool's free podcasts, check out our podcast center. When you're ready to invest, check out this top 10 list of stocks to buy.

Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »

A full transcript is below.

Should you buy stock in Broadcom right now?

Before you buy stock in Broadcom, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Broadcom wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $442,220! Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,230,114!

Now, it’s worth noting Stock Advisor’s total average return is 926% — a market-crushing outperformance compared to 203% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.

See the 10 stocks »

*Stock Advisor returns as of June 11, 2026.

This podcast was recorded on June 4, 2026.

Tyler Crowe: We've got Broadcom stock whiplash today on Motley Fool Hidden Gems Investing. Welcome to Motley Fool Hidden Gems Investing. I'm your host, Tyler Crowe, and today I'm joined by longtime Fool contributors Lou Whiteman and Matt Frankel. Today, we were going to mix it up a little bit. We thought we're going to do a bunch of different segments and do some basically non-earnings takes because it's June. We don't normally get a lot of surprise earnings stuff, but then Broadcom had to go and give its earnings, and now its stock’s down, I think, almost 15% as we are taping today, as we're going to get into. I'll let you guys really digest the numbers here. But by all objective metrics, all the numbers looked good. The guidance looked fine. Is this really just expectations game, Lou?

Lou Whiteman: I think it is. Expectations are everything. It's glass half full of glass empty. Stock is up 15%, just heading into earnings. When you get that sort of expectations, any slight hiccup, any slight sneeze can set you back. This was a slight miss on revenue, but look, it's brutal when people are expecting enough. Apparently, it was enough to outweigh 140% gains in AI semiconductor sales, which I don't know, Tyler, sounds pretty OK to me.

Tyler Crowe: Matt, you were the task a little bit more with the nitty-gritty of the numbers here. What did you see in this that was like, maybe not great. I don't know. It's hard to look at these and say, Yeah, we should definitely be dropping the stock by 15% because that's just what we do these days.

Matt Frankel: It's not only Broadcom. CrowdStrike also reported. We're getting all the reports from companies that use weird fiscal years, and some of them haven't been too impressive. But there was a lot to like here, 48% revenue growth, they beat on the bottom line. As Lou said, 140% roughly growth in AI semiconductor revenue. Guidance was strong, but if you look into the guidance, the AI revenue that they're guiding for is not quite what the market expected, so that could be driving a little bit of the sell-off. Any slowdown in AI or perceived slowdown is enough to scare investors, and it's not just that it was running up 15% heading into earnings, Broadcom was up 90% over the past year. In a nutshell, this stock went into the report priced for a blowout quarter and blowout guidance. It was a good quarter. I wouldn't call this a blowout quarter, especially on the AI side of the business, not a blowout.

Tyler Crowe: We certainly did see a lot of blowouts this most recent quarter looking at a lot of these suppliers. Taiwan Semi, basically everyone was like, everything is awesome. With Broadcom's numbers looking pretty good. It was almost like comparing to everyone else. Is like, Well, they were that good. Can you do as well? This touches on a couple of top themes and topics we've discussed so far during this week. When the three of us were on the show on Tuesday, we were talking about how much does narrative play into your thesis? Narrative is also valuation-based. We were talking about this with Dollar General because, as a value play as a stock, you are betting on a return to median, return to average valuation.

Right now, we're all the narrative is defying expectations to justify very high valuations. At the same time, too, it touches on this idea of the start-stop whack-a-mole discussion about the AI build-out that, Lou, you, I, and Travis were talking about yesterday, where it seems like every couple of months here, we're talking about the next bottleneck. At first, it was is going to be chits. Then it became memory chips. Now we're talking about, the old companies like Dell that are just building off products, and we can name like 15 other suppliers where somewhere there's a stop-start going on here where somebody's doing awesome, but then, just because they didn't blow out earnings, they're going to have a 15% stock drop.

Lou Whiteman: Two points here, one macro, one micro, I guess. First of all, the macro, the narrative. I think you are so right and I think investors better be watching the narrative right now because there is a real indication that nothing is good enough. I look at what happened with Nvidia’s quarter. Look what the stock did there. Expectations are so out of this world right now that I don't know if any company, almost, can satisfy the market long term. For strong companies that can outlast the cycle, that's just an annoyance. But if you are in some of the, I guess, more speculative AI companies, I think this should be a warning sign to you that nothing is good enough, so look out below.

Specific to Broadcom, look, there are massive expectations still up ahead. CEO Hock Tan is forecasting $100 billion in annual AI chip revenue in fiscal ‘27. They're on pace to do about half of that this year, Tyler, and it took triple-digit gains to get to that 50 billion that they hope to do this year. I see that the stop-start nature of this, the questions about potential fragility, and it scares me. You add in the fact that OpenAI and Anthropic are going to account for a lot of that growth. Those are two very different companies right now. Even if OpenAI gets their act together and does well, you are putting a lot of eggs in just a couple of baskets with that customer concentration. I'm not predicting gloom. Broadcom is a good company, but right now, it's just hard to look at this and say, yes, everything's fine, everything goes up from here.

One other thing, software revenue, which is supposed to be recurring, to balance this out. That only grew by 9%. All of this growth is going to have to come based on their ability to keep selling hardware at really amazing levels. We'll see how long that lasts.

Matt Frankel: To Lou’s point, the expectations are huge here. You mentioned they're predicting about $100 billion of AI revenue in 2027. For about $40 billion of that, a little more is expected to come from Anthropic alone. OpenAI is a big client. The anthropic and OpenAI IPOs are really worth paying attention to. Anthropic just raised $65 billion. We've talked about this with other companies. I think Oracle was one of them where these commitments they're going to need to pay. They raised $65 billion. OpenAI raised $120 billion recently. That's not going to be enough for all of their commitments. These IPOs really need to go well, they need to get strong valuations. OpenAI and anthropic IPOs are probably the single most important near-term story for Broadcom investors to watch. The 2027 and 2028 growth story for the company, which the IPOs are going to directly support. It's largely intact for now, but that could change if demand cools off.

Tyler Crowe: We'll be getting into that in a later segment, but the amount of money that needs to be raised this year to make those commitments to Broadcom and all their other suppliers is looking pretty hefty and could have some pretty profound impacts on the market in general, beyond just those individual companies. But we're going to hit that after the break. But before that, we're going to actually take a pause from the AI discussion and just kind of look at some other sectors and some stocks that are really changing up the narrative of the sector that they're in. We'll hit that after the break.

[ADVERTISEMENT]

Tyler Crowe: I was reading an investing newsletter a couple of days ago, and there was a quote from the chief economist at Apollo talking about diversification and the importance of it. This was an interesting quote to me. It was factor investing tells investors not to be overexposed to just one factor. What he said was, the new 60/40 is now the AI versus non-AI thing. For those who aren't familiar, 60/40 was the benchmark gold standard for individual investors, people, probably not picking individual stocks. 60% of your money in stocks, 40% of your money in bonds, maybe you start changing that as you get older, but it was the standard benchmark that most wealth advisors told you to do to get diversification in the market.

As this quote is saying, it's not just the factor of bonds versus stocks, but it's also how much diversification do you have away from AI? In the spirit of that, we wanted to dedicate a whole segment to basically sectors and parts of the market that just aren't AI. Specifically, we've had a pretty bifurcated market so far. We've had some industries doing extremely well and others have been taking a bit on the chin. I think insurance, healthcare, biotech has done surprisingly not well. Well, energy, semiconductors, technologies absolutely fly. In that vein, what we played a little game with these guys. I each wanted you guys to pick one stock from an industry and find a stock that you find that is bucking the sector trend. Is there a company that's doing lousy in these awesome sectors or a company that's doing gangbusters in a downtrodden sector? I want to start with you, Matt. What's the sector in the stock that you're like, This is interesting.

Matt Frankel: Well, it's been a long time since I've gotten to talk about real estate because all we talk about is AI and SpaceX lately. I'm going to bring up.

Tyler Crowe: That's the whole point of this segment.

Matt Frankel: I'm going to bring up a real estate stock. Over the past three months, the S&P 500 as a whole has gained about 11%, mostly because of the mega‑cap tech stocks. Meanwhile, the real estate sector has been almost exactly flat. It was up 0.02% as I was looking this morning. There are some good reasons for it to be fair, specifically the fact that inflation is at its highest level in three years. There are legitimate concerns about the Fed raising rates. Real estate is a very rate-sensitive sector as a whole.

One that has really bucked the trend is Ryman Hospitality Properties. Ticker is RHP. It's up 18% in the past three months, even beating the S&P, not just the real estate sector. Hotel real estate is generally less rate-sensitive than other real estate subsectors. Unlike things like warehouses and retail properties which rely on long-term leases have predictable cash flow, hotels rent their space by the night and share prices; therefore are more governed by the business performance, which can really ebb and flow over time. Ryman's business has been impressive. In the first quarter, revenue and net income were at all-time highs for that time of year. The company raised its full-year guidance. Average daily rates for the hotel rooms and out-of-room spending were both up by double digits year over year. Their entertainment division is performing really well, especially that Old Red dining and entertainment brand just announced its seventh location. Its flagship Vegas location is dramatically outperforming expectations. Adjusted FFO, funds from operations, which is the real estate version of earnings, grew by 19% year over year. That's a rapid pace for real estate.

Tyler Crowe: Permit me a little bit of a follow up question here. When I think hospitality, too, though, I do think sensitivity to macroeconomic factors. When you look at Ryman, because it is a hospitality REIT, is this a specific REIT that has some call it macroeconomic macro vibes resiliency in it with its business model, or is it a little bit of ride the wave until it's no longer working?

Matt Frankel: That's a really good question because they're a group-focused hotel. The reason that that's important is that they focus on conferences, conventions, things like that, and these tend to book three,, four years in advance. They have a lot of future revenue visibility as opposed to an operator of a Hilton or a non-group focused hotel. They have some resilience, and you got to think of what they're being compared to in year over year. International travel was way down a year ago. That's coming back a little bit. Group events are a very resilient part of the hotel market. You bring up a really good point. I wouldn't really want to invest in a leisure hotel operator with macro uncertainty, but one that has that group-focused business, which is more than half of Ryman's business, it does have a little more visibility.

Tyler Crowe: Lou, I think we're not going to do anything real estate related to what you're looking at here.

Lou Whiteman: No, I will say, though, I'd rather own Ryman than stay at the Grand Old Opery. There's that for it. Look, I'm looking at the transports. I'm going to apply my gratists too, but it's been a pretty crummy few years for the transports. There were a lot of factors driving that. We were coming down from the sugar high of the pandemic where everything was shipped. ASAP. We've had the added uncertainty of tariffs, trade wars, and macro concerns, slowing economy. Big customers tend not to stock up on inventories if they're worried, the economy is slowing. It all has added up to underperformance, really crummy numbers. Nasdaq Transportation index has underperformed the market by 25 percentage points over the last three years.

In that environment, XPO, a trucking company, is up 340%. Easily beating both the transports and the broader market. Now some of that is good fortune. A big competitor, yellow, liquidated, XPO picked up a lot or a good bit of that business at literally prices that made it EB a positive just from Day 1. But it's also management deserves a lot of credit here. This is a story of simplification. Split out a couple of other units to just focus on one thing and being good at one thing. They shedded unrelated businesses that are fine on their own, but not part of the story. They also hired a ton of really, good people from competitors that quite frankly were doing better than them and they've started to shift their focus to margin over volume. This is, I think, sustainable. We've seen with Old Dominion, how a good operator over time can just outperform the sector and the market just based on the strength of their operations. I think XPO has elevated itself to that level.

Tyler Crowe: Similar follow up, and this is a discussion you and I, I think we had a couple of years ago too, where it felt like a time where trucking, especially was like, you've got Old Dominion XPO is up and coming, but you had a lot of subpar operators in this industry, so it was Old Dominion and to a lesser degree, XPO was taking candy from a baby taking market share here because they couldn't seem to get their hand out of the paste jar. It seems like that's less the case now. Obviously, Old Dominion XPO are dominant players here, but some of the other players in the industry found religion, I guess, you will, on March and on capacity additions at a reasonable rate. With that in mind, with the outperformers like XPO and Old Dominion that have done so well, now that they're facing more competent competition, is the growth opportunities as robust here or is it a little bit more of a knife fight for share?

Lou Whiteman A couple of things going on, I think. For one, until recently, XPO didn't deserve to be in that conversation as a good performer. What you've seen is them enter this. I think it's more of a risk for, say, an Old Dominion, which has benefited over the years for just being the only ones who could get pricing right. The other answer is scale. At the end of the day, you still have advantages to scale that you can be more efficient, even if it's the super friends, a couple of players that are really, better than anyone else, there's enough business out there. XPO is finally trading. At a multiple similar to Old Dominion, which you never saw a few years ago. I do think probably the 340% over three years, that we can't repeat that, that a lot of that was playing catch-up. But I think that, like I said, Old Dominion is the model. I think there is room for a few companies here that just outperform their peers and, over time, outperform the market.

Tyler Crowe: Trucking, as boring as it sounds, it's been a weirdly fascinating industry over the past I don't know, at least decade to follow. Interesting to see XPO, I can almost say getting down to fighting weight, I guess would be the best way to put it so they can compete. I'll give my answer here too, because one industry that's been quite lousy this year and so far, year to date, as well as over the past year or so has been insurance. Obviously there is reasons for that. Insurance is a cyclical industry, and a lot of the underperformers in the insurance industry in general have been a lot of high flyers, especially your specialty insurers and things like that. You're also seeing a lot of pricing pressure on the big lines of insurance that we see automotive and homeowners, some of the biggest a lot of these competitors are trying to take share and when you take share, profitability sinks and that tends to hurt stocks.

But health insurance in particular has been hit even harder. Rising costs are getting hard to control, plus lots of backlash from patients, and just in general, the feeling towards health insurers has been not great because high rates of denials, higher copays. It's the stuff that frustrate people using their health insurance. It's led to quite a bit of unpopularity. This is where there’s this one company that seems to be separating itself from the rest here, and obviously, it’s a small one, so it has that opportunity. It's called Oscar Health, ticker OSCR. They straddle this health insurance technology and health insurance broker business. Most of what it did was, when it got started in 2012, it was contingent on the American Healthcare Act or the Obamacare marketplaces. What it did was it set up programs where small business owners would let their employers buy individual insurance and using Oscar's platform, the employer would basically reimburse the individual for it, and that would allow them to meet their compliance for insuring their customers, while giving them — their employees, excuse me,— while giving them more options and actually was a way of relatively controlling costs because there were some subsidies related to using the marketplaces.

It kinda worked for a while, but when the marketplaces, ObamaCare marketplaces are doing well. But many insurers have left that program, and it’s been walking in the woods, trying to figure out what it wants to do next, and figure this out, and it’s starting to gain traction here. It's now more focused on providing individual insurance themselves, taking more of the underwriting burden, and so far, they've done a decent job. Their combined ratios are, have been varying. I think their health loss ratios were 70% in the most recent quarter, combined ratios 87, 88, which by insurance standards, is quite good. Any insurance, almost any line that you're looking at, below a 90% coverage loss ratio, which is basically how much you have to pay out in costs for healthcare or auto claims or anything like that, relative to the premium bring in. It's basically saying you have a 10% operating margin. Industry lingo. I know it's silly, but it works pretty well for an insurer.

Despite the fact that they've been winding down some big-name programs, they had a program with Cigna that didn't quite work out. They've been focusing more on the individuals. It seems to be working. I'm not saying they're out of the woods yet, and I'm not wholeheartedly going to pound the table to say, this is an awesome company now, but it's very interesting to see and obviously the stock is reflecting the fact that they are getting some traction with what they're doing. Coming up next, we're going to get into listener questions about all these massive IPOs coming to market.

Hey, just a reminder, we love answering your questions. If you do want your question answered on air, go ahead and email us at podcasts @fool.com. Three rules as always. No. 1, keep it Foolish, two keep it short enough for us to read, and three, we cannot give personalized advice, so let's try to keep it relatively generic.

As long as we've been taking questions, what we have seen more than anything else so far is questions about SpaceX, Anthropic and OpenAI IPOs, specifically to how they're going to impact the broader market. We're talking about early index inclusion for a lot of these companies because they're going in so big, and the questions have been numerous. But there's just two that are most representative of what we're talking about. This was from Ben Jackson. "With the recent changes to the Nasdaq index and immature over to value companies like SpaceX IPO with little supply — he's being a little diminutive here — but should your average ETF investor or index investor be reconsidering or selling their ETF portfolio to avoid the long-term turbulence that these large IPOs going into these ETFs may cause. This one is from Thomas Bianco. If we already know that approximately $4 trillion of new money will be sucked up in these three IPOs, basically, the combined market value, they think is going to be around $4 trillion for all three of them when they go public, How can we adjust our current equities positions to account for these forthcoming disruptions?

Now, I want to just give a little bit of context here because all the money we're going to be sucking up with these large ones. Right now, data from the Federal Reserve of St. Louis says that about $8.1 trillion is in money market funds as of fourth quarter of 2025. That sounds like a lot, but you also have to factor, how much is in the market in general. We have a thing at The Motley Fool. It’s called the PT potential growth indicator. Basically, it takes all the cash that's on the sidelines or in money market accounts, like the Fred data says and then divided by the total stock market valuation, which is at about 10.1%. Over the past 30 years, that is a little bit on the lower side. You could say that that's saying, everyone's pretty optimistic. They want to be in the market relative to what we see in other different times. With those little factoids, the amount of money that we're talking about here, guys, what do you have to say to Ben and Thomas' questions here?

Lou Whiteman: I think the first thing we should note is that the IPO headline number isn't the same as the money raised. SpaceX is looking for a $1.8 trillion IPO valuation, but it's only actually raising 75 billion. That said, 75 billion is a massive number for an IPO. I think the point is still relevant. The net impact, though, I'm not sure what I think. It might suck money away from other areas because again, we have a lot of demand here. $75 billion worth of money has to be found here. But over the next six months, billions of dollars in SpaceX stock is going to be unlocked and free to trade. These are people who got in before the IPO. If those insiders decide to sell, that could free up at least 75 billion, if not more for other opportunities that could impact other stocks in a positive way. That actually could be a positive impact in some ways, Tyler. Bottom line, though, is the only thing we know for certain is it's going to cause volatility. I personally am not going to reposition things or do anything in anticipation of this. I think that, yes, there could be volatility, but over time, I think this will balance itself out as a long term focused investor. I'm not going to lose sleep on this, I'm going to just make some popcorn and watch.

Matt Frankel: As Lou said, the money raised won't be in the trillions of dollars, but the latest forecast is for around 240 billion across those big three, SpaceX, Anthropic, and OpenAI. Just to put that in context, in 2025, the entire IPO market, all companies raised about $45 billion combined. The largest U.S. IPO previously raised about 22 billion. We are in uncharted territory. There’s plenty of money on the sidelines, as Tyler mentioned, the money market accounts, but the reality is that a lot of money flowing into these three IPOs is going to have to come from somewhere, and existing stock investments are probably going to be a big source. Specifically, I would think that most people are going to sell Magnificent 7 shares to invest in some of these. No one's going to sell their realty income stock to buy SpaceX is my point there. Tesla could be an interesting one to watch. A lot of Elon Musk fans could sell one Elon Musk stock to buy another.

But on the other hand, there is a case to be made that there's going to be a lot of new money flowing into the market this year, not just because of these IPOs. These IPOs are certainly increasing the overall interest in the stock market by retail investors. As we're recording this, I actually got a notification from my broker that the SpaceX IPO is available. A lot of people are taking notice. It's going to be an interesting year for sure. All three could create significant short-term volatility, but like Lou said, I'm not losing sleep over it. I think it's going to work itself out in the long term, and I'm not planning on buying any of these three on Day 1, at least.

Tyler Crowe: Feel like we're probably all going to get that SpaceX email from our brokers in the next week or so I want to just actually conclude with this, too, about ETFs and allocations and things like that. This is an important thing for people to consider when they're buying ETFs. Say you're buying a broad-based S&P 500 ETF, there are two different types. There are market cap-weighted ones, which is obviously the ones that are going to be most influenced here by the large amount of money going into them. But there's also equal-weight CAP or equal-weighted indices as well, where instead of doing market cap as, it's every single company at every equal weights. It's pretty self-explanatory. Ones like this are obviously going to probably see less volatility relative to these trades. If you are looking to get broad exposure to an entire market, but are perhaps more skittish, I guess you could say, of these mega-cap companies coming in and becoming a larger and larger portion of what's supposed to be a broad-based index. There are equal-weight index options out there that might be worth considering.

As always, people on the program may have interest in the stocks they talk about, and The Motley Fool may have formal recommendations for or against, so don't buy or sell stocks based solely on what you hear. All personal finance content follows Motley Fool editorial standards and is not approved by advertisers. Advertisements are sponsored content and provided for informational purposes only. To see our full advertising disclosure, please check out our show. Thanks to producer Dan Boyd and the rest of the team for Lou, Matt, myself, thanks for listening, and we'll chat again soon.

Lou Whiteman has positions in Taiwan Semiconductor Manufacturing and XPO. Matt Frankel, CFP® has no position in any of the stocks mentioned. Tyler Crowe has positions in Ryman Hospitality Properties. The Motley Fool has positions in and recommends Broadcom, CrowdStrike, Nvidia, Old Dominion Freight Line, Taiwan Semiconductor Manufacturing, and Tesla. The Motley Fool recommends Ryman Hospitality Properties and XPO. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Haftungsausschluss: Der Text wurde mit Hilfe einer KI zusammengefasst und übersetzt. Für Aussagen aus dem Originaltext wird keine Haftung übernommen!

There's a divergence happening within the world of streaming entertainment. Netflix (NASDAQ: NFLX), the pioneer in the industry, has seen its share price fall 12% in 2026 (as of June 10). Roku (NASDAQ: ROKU), on the other hand, is up 11% this year.

These companies have different operations. But investors might look at them as a way to allocate capital to a growing and tech-forward industry. The performance of their shares might provide an indication as to the direction their businesses are going in.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »

Which of these well-known streaming stocks is the better one to buy in June?Image source: The Motley Fool.

The behemoth is slowing down

Netflix continues to dominate video entertainment. It has more than 325 million subscribers. Its massive scale supports huge profits. The company's operating margin in Q1 was a reported 32.3%.

But it's becoming clear that its next phase will be defined by slower growth. Management expects sales to rise 13.3% (at the midpoint) year over year in 2026, which would be the slowest pace since 2012 (besides 2022 and 2023).

During the earnings call, co-CEO Greg Peters mentioned that Netflix hasn't yet captured 45% of its addressable market based on about 800 million total smart-TV-capable households in the countries it operates in. This means that there is still a sizable untapped opportunity to continue pushing growth. In theory, this is the correct view.

However, bringing these consumers on as Netflix subscribers will be much more difficult than it has been. Competition is incredibly fierce. Key markets like the U.S. and Canada are essentially saturated. And growth in emerging countries, like India, Brazil, and Mexico, will come from cheaper membership tiers that will have less impact on revenue.

Based on the stock's 12% decline this year and the 39% fall from its peak in June 2025, the market might be accepting this new reality. Shares trade at a price-to-earnings ratio of 26.5, representing a 36% discount to the five-year trailing average.

It's all about free cash flow

During the first quarter (ended March 31), Roku reported a year-over-year revenue gain of 22.4%, with the top line totaling $1.2 billion. This was the fastest growth rate since Q1 2022.

The company's platform segment is operating at a high level. Its sales were up 28% in Q1, driven by a 27% increase in advertising and a 30% jump in subscriptions. This is a very high-margin revenue stream, with the gross margin coming in at 51.6%.

Story Continues

Roku's position as an agnostic streaming ecosystem works to its benefit. While content companies spend copious amounts of money to develop shows and movies, this business provides a meaningful value proposition as the aggregator of all those offerings. More than 100 million households are Roku customers, giving the company's smart-TV operating system the leading market share in North America.

Although revenue trends get the attention, it's time investors start to focus on the profit story. The leadership team forecasts $360 million in net income this year. And in 2028, they expect Roku to generate $1 billion in free cash flow (FCF), up 107% from 2025. Cost controls and rising high-margin platform revenue are tailwinds.

Shares trade at 17.3 times the 2028 $1 billion FCF estimate. That's a compelling valuation to pay, given Roku's outstanding growth trajectory.

What's your objective?

Both Netflix and Roku are in strong positions within the broader media and entertainment landscape. Investors looking to bet on streaming's ongoing success are wise to consider these two businesses.

Netflix is the safer opportunity. It has established a leadership position, supported by a tech-enabled platform and strong content creation. And its impressive profitability is hard to overlook.

Roku's advertising-heavy model is taking off, even though it can be more cyclical. But the company's rising FCF is an encouraging trend that can boost shareholder value.

Investors deciding between these two streaming stocks must determine their ultimate objective. If you're after a proven and stable company, Netflix is the better choice. But if you want the chance to achieve better returns, Roku has more upside over the next five years.

Should you buy stock in Roku right now?

Before you buy stock in Roku, consider this:

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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $442,220! Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,230,114!

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*Stock Advisor returns as of June 11, 2026.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Netflix and Roku. The Motley Fool has a disclosure policy.

Netflix Is Down 12% in 2026, While Roku Is Up 11%. Which Streaming Stock Is the Better Buy in June? was originally published by The Motley Fool

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