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Tesla on Wednesday forecast it would invest at least $25 billion in infrastructure this year.
Credit: Patrick Pleul / picture alliance via Getty Images

Key Takeaways

• Tesla on Wednesday said it expects to nearly triple its capital expenditures this year as it ramps up spending on AI.
• Tech giants are expected to spend nearly $700 billion on capex this year, continuing the trend of dramatically higher spending that has at times worried investors and pressured their stocks.

Tesla on Wednesday said it’s ramping spending on AI. That could be a sign of what’s to come when a slew of Big Tech companies report results next week. 

Tesla (TSLA) forecast capital expenditures would exceed $25 billion this year, nearly triple the $8.5 billion it spent last year. Capex totaled about $2.5 billion in the first quarter, suggesting the bulk of this year’s spending has yet to come. Executives are calling this a cost of the kind of business Elon Musk says Tesla intends to do as it shifts toward non-car businesses.

"While this may seem a lot and we will have the impact of negative free cash flow for the rest of the year, we believe this is the right strategy to position the company for the next era," said CFO Vaibhav Taneja of Tesla’s spending plans on a call with analysts Wednesday night. 

Why This Is Important

Big tech's AI investments have been a major source of fuel for the bull market and the U.S. economy over the past few years. Tesla's plan to dramatically increase capital expenditures this year could signal those investments won't decline anytime soon.

Tesla stock fell Thursday as investors evaluated the electric car maker’s better-than-expected earnings, surging capex, and progress on new initiatives like a custom AI semiconductor and the Optimus humanoid robot. Shares opened nearly 4% lower, before paring their losses. Despite the move, stocks are broadly higher today, extending an upward run driven in large part by investor willingness to get on board with the investments Big Tech has made on the AI buildout.

Tesla’s forecast could foretell similar increases from the so-called hyperscalers—Microsoft (MSFT), Alphabet (GOOG), Amazon (AMZN), Meta (META), and Oracle (ORCL)—the first four of which are slated to report results next Wednesday. Together, they’ve projected capital spending will range between $640 billion and $670 billion this year. 

Those investments have at times unsettled investors who fear they’re misallocating capital and fueling a speculative bubble in their rush to build AI-enabling data centers. For a while, those fears were allayed by the undeniable strength of each company’s balance sheets and income statements. 

But the spending spree has taken its toll. Free cash flows have declined significantly over the past few years, and are expected to turn negative this year at Oracle and Amazon. Some hyperscalers, including Meta and Alphabet, have turned to debt markets to fund their data center buildouts, upping the risk of the endeavor. 

To be sure, most of the hyperscalers remain on solid financial footing. "At this moment, our ratings on these companies, sans Oracle Corp., are not impacted by this weakening of cash flow," wrote S&P Global analysts on Tuesday. Oracle is an outlier due to its "structurally higher leverage and weaker internally generated cash flow relative to investment needs."

Still, anxiety about AI spending could rear its head when hyperscalers report next week. Bank of America analysts on Thursday listed “increase in capex outlook” among the risks Alphabet faces heading into its results.  

After years of gargantuan capex increases, tech giants may be reluctant to spend more. Alphabet CEO Sundar Pichai said at a conference earlier this week that the company expects to invest between $175 billion and $185 billion in capex this year, the same range shared in its last earnings report.

Big tech stocks were pressured by negative investor sentiment in the early months of this year, but have rebounded in the last month amid optimism about easing tensions in the Middle East. As of Wednesday afternoon, shares of Amazon, Alphabet, and Meta were up 12%, 8%, and 1%, respectively, since the start of the year. Microsoft stock has declined about 12%, weighed on by the AI-disruption fears that have hammered nearly all software stocks this year.

Oklo's stock has more than tripled in value over the past year
Credit: Jonathan Raa / NurPhoto / Getty Images

Key Takeaways

• Oklo shares surged Thursday after the nuclear energy startup announced a new partnership with Nvidia.
• Oklo's stock has more than tripled in value over the past year amid expectations it could benefit from growing power demand for AI data centers.

Oklo's stock is powering higher on the heels of a new partnership with Nvidia.

Shares of Oklo (OKLO) were up over 5% recently after the nuclear energy startup announced a new partnership with AI chip heavyweight Nvidia (NVDA) and the Los Alamos National Laboratory to "advance critical nuclear infrastructure, AI-enabled research, and nuclear fuel R&D at Los Alamos." Nvidia shares were down about 1%.

The companies will collaborate on AI models focused on research and development for nuclear fuel technology, according to the release.

Why This Matters to Investors

Oklo is the latest to get a lift from deepening ties with AI chipmaker Nvidia in recent months, and the agreement could boost sentiment around its stock.

"This agreement brings together reactor deployment, high-performance compute, and world-class fuel and materials science expertise,” Oklo CEO Jacob DeWitte said in Thursday's statement.

Though shares of Oklo have pulled back in recent months amid some uncertainty around the trajectory of AI, the stock has still made significant gains over the past year on optimism that the industry could benefit from growing power needs, and as tech companies look for clean energy solutions.

With this week's gains, Oklo shares are back in positive territory for 2026 and have more than tripled in value from the same time last year. Nvidia shares are up about 7% year-to-date and close to 90% over the last 12 months.

Cannabis-linked shares swung today as investors digested the latest federal drug policy news.
Credit: Getty Images

Key Takeaways

• The Trump administration reclassified certain marijuana products from the government's most restrictive drug classification to one that would make it obtainable with a prescription.
• Cannabis stocks and marijuana-themed funds surged on Thursday before reversing course.

Marijuana-related investments were flying high this morning. Then they reversed course, and quickly.

The Trump administration on Thursday moved to reclassify marijuana products from the most restrictive federal drug classification—a category that includes heroin—to one that would make it obtainable with a prescription. The announcement would immediately place Food and Drug Administration-approved marijuana products, as well as medical marijuana items, in the new category.

“This rescheduling action allows for research on the safety and efficacy of this substance, ultimately providing patients with better care and doctors with more reliable information," Acting Attorney General Todd Blanche said in a statement on Thursday.

WHY THIS MATTERS TO YOU

The reclassification moves some cannabis products into a category alongside Tylenol with codeine, from one that includes heroin, but does not legalize the drug at the federal level.

The development drove shares of cannabis companies, including Tilray (TLRY), Canopy Growth (CGC), Curaleaf Holdings (CURLF), higher in early trading Thursday before they fell back into the red. Marijuana-themed funds, such as the AdvisorShares Pure US Cannabis ETF (YOLO) and Amplify Alternative Harvest ETF (MJ), were recently down about 5%.

Why the reversal? There may be some "buy-the-rumor, sell-the-news action" going on, since some news organizations had already reported that the latest actions might happen. But there is also more work to be done: While the administration's latest actions—President Donald Trump signed an executive order last week aimed at accelerating the development of psychedelic drugs as medical treatments—would mark a meaningful government pivot on drug policy, cannabis businesses will have to wait a few months to see whether marijuana will be receive broader rescheduling to a Schedule I drug from a Schedule III with a formal hearing set for June 29.

And the news doesn't fully legalize marijuana at the federal level. A Polymarket event contract "Weed rescheduled by...?" now suggests just a 13% chance that would happen by the end of June, compared with more than 40% by the end of the year.

This is the original Tesla Roadster, seen in Texas in 2020. EV enthusiasts hope the new model will hit the road soon.
Credit: Getty Images

Key Takeaways

• Tesla CEO Elon Musk yesterday offered the latest update on the status of the under-development Roadster, which he said could debut in "a month or so."
• Fans have been putting down deposits on the car for years, and still can. It was originally aimed at 2020.

Someday you may not be able to actually drive your Tesla—unless you pay up for the privilege.

Tesla (TSLA) CEO Elon Musk late Wednesday offered his latest update on the status of the next-generation Roadster, the sleek two-door sports car first announced in 2017, reservations for which can be currently had for a cool $50,000 but which will likely actually cost well into the six figures. Some of the news may have frustrated those already waiting on the cars, with Musk saying the company might debut it in "a month or so; earlier this year, he'd pointed to this month, and the original target was 2020. (You can recap our coverage of Tesla's latest quarterly results here.)

"It requires a lot of testing and validation before we can actually have a demo and not have something go wrong with the demo," Musk said on a conference call with investors and analysts, a transcript of which was provided by AlphaSense. "But I think it will be one of the most exciting product unveils ever."

The call offered plenty of commentary from Musk illustrating his determination to move the company toward new businesses and efforts ranging from autonomous vehicles and robots to chipmaking. On the car front, he suggested that the high-end Roadster, which in marketing materials will reach 60 miles per hour in under two seconds, might someday be the only model to be controlled manually.

The Tesla lineup, Musk said, is"going to be almost entirely autonomous. In fact, long term, the only manually driven car will be the new Tesla Roadster."

That might apply to older models, too. Asked during the conference call about when some older Teslas might be able to obtain its "unsupervised full self driving" technology, Musk said those models would need to either be upgraded or replaced, citing technical constraints in the hardware carried on the older models.

"For customers that have bought FSD, what we're offering is essentially a trade-in," Musk said. "And we'll also be offering the ability to upgrade the car to replace the computer."

Shares of Tesla were down about 2% in recent trading. Read our full coverage of today's trading here.

Thursday's slump leaves ServiceNow shares down more than 40% since the start of the year.
Credit: David Paul Morris / Bloomberg / Getty Images

Key Takeaways

• ServiceNow shares tumbled Thursday after the company said the Iran war is weighing on its business.
• Shares of other software stocks also slumped.

ServiceNow's latest results are sending a shockwave through the sector.

Shares of ServiceNow (NOW) were down nearly 16% in recent trading, making it the worst-performing stock in the S&P 500 after the enterprise software maker said the ongoing conflict in the Middle East is weighing on its business.

Shares of Salesforce (CRM), Workday (WDAY) Adobe (ADBE), Intuit (INTU), and other software stocks also lost ground, dragging on the broader tech sector and major indexes.

Why This Matters to Investors

ServiceNow's warning could be taken as a concerning signal with implications for a wide range of companies, including software firms seen as less exposed to the conflict than those in many other sectors.

ServiceNow reported adjusted earnings of 97 cents per share on a 22% year-over-year rise in revenue to $3.77 billion for the first quarter. Both figures were roughly in line with analysts' estimates compiled by Visible Alpha.

The company said it expects subscription revenues, responsible for the majority of its sales, to grow 22.5% in the current quarter, above the analyst consensus.

Thursday's slump adds to what has already been a tough year for many software stocks, amid worries about AI-driven disruption. With Thursday's decline, ServiceNow shares have lost more than 40% of their value in 2026 so far. Salesforce, Workday, Adobe, and Intuit have all lost more than a third of their value over the same period, with the iShares Expanded Tech-Software Sector ETF down 20% year-to-date.

News of the day for April 23, 2026

The S&P 500 and Nasdaq closed at new record highs on Wednesday.
Credit: Angela Weiss / AFP / Getty Images

Stocks futures are lower this morning after major indexes hit fresh record highs yesterday, as investors monitor developments in the Middle East and digest a flurry of earnings reports; oil prices are rising as traffic in the Strait of Hormuz remains at a standstill; Tesla shares are losing ground despite a better-than-expected earnings report as the EV maker outlined big new spending plans; ServiceNow shares are tumbling after its results failed to top expectations; and IBM shares are also under pressure after earnings. Here's what you need to know today.

Stocks Poised to Pull Back from Record Highs

Stock futures are falling this morning amid uncertainty over the outlook for peace talks in Iran, as investors assess quarterly results from several major companies. Futures tied to the Dow Jones Industrial Average were down 0.6% recently, while those connected to the S&P 500 and Nasdaq were each down 0.4%. The major indexes posted their first day of gains for the week yesterday, with the S&P 500 and Nasdaq closing at record highs as markets rallied following an indefinite extension of the U.S.-Iran ceasefire. Crude oil futures were up roughly 1% as traffic in the Strait of Hormuz slows once again (more on that below), while gold futures fell less than 1% to $4,720 an ounce. Bitcoin, which has been trading at its highest levels since early February in recent days, was at $77,500, down from an overnight high near $79,000. The yield on the 10-year Treasury note was at 4.31%, up from 4.29% at yesterday's close.

Oil Rises Amid Uncertainty About Strait of Hormuz, Peace Talks

West Texas Intermediate futures, the U.S. crude oil benchmark, were up 1% at around $94 a barrel as investors remain concerned about the status of the Strait of Hormuz. After falling on hopes of a peace deal last week, oil prices have climbed again this week as the U.S. blockade of Iranian ports, along with the seizure of multiple cargo ships in and around the strait, have kept traffic to a near standstill despite the ongoing ceasefire. President Trump said Wednesday that there is "no timeline" for ending the war and no specific timeframe in which he wants to hold the second round of peace talks with Iran. Vice President J.D. Vance's trip to Pakistan to lead the second round of talks was postponed earlier this week, reportedly over a lack of communication from officials in Iran committing to the talks.

Tesla Stock Falls as Company Unveils New AI Spending Push

Tesla (TSLA) shares were down more than 3% in recent premarket trading as investors react to the EV maker's latest quarterly results and earnings call, which took place after the closing bell yesterday. Tesla's results beat estimates as the company said it is seeing demand for its EVs rebound. However, investors may be wary of the company's new spending plans, as big tech companies have recently been pressured to show a clear return on investment for the billions they are spending on AI initiatives. CFO Vaibhav Taneja said on the call that Tesla's capital expenditures could jump to $25 billion this year, from $8.5 billion in 2025, as the company spends big on new manufacturing efforts.

ServiceNow Stock Tumbles as Results Fail to Impress Investors

ServiceNow (NOW) shares are sinking this morning after the software maker's latest earnings report failed to wow investors. The company reported adjusted earnings of 97 cents per share with $3.77 billion in revenue, each roughly in line with what analysts had forecast, per Visible Alpha estimates. Executives said the ongoing conflict in the Middle East weighed on its ability to close deals in the first quarter, and could continue to do so in the coming months. In its release, ServiceNow said that the number of customers spending over $1 million on its AI product suite, Now Assist, grew 130% year-over-year in the first quarter. Shares were down 12% ahead of the opening bell. Coming into today's session, the stock had lost one-third of its value this year amid concerns about AI disrupting the software industry.

IBM Stock Slips Despite Earnings Beat

Shares of International Business Machines (IBM) are also sliding despite results from the tech giant that topped the Wall Street consensus. IBM reported adjusted earnings of $1.91 per share on $15.9 billion in revenue, each better than analysts had expected. The company maintained its full-year outlook of at least 5% revenue growth, in line with estimates, but investors may have been hoping for a raised forecast considering the first quarter came in better than expected. IBM shares were down more than 7% recently.

The Trump administration is reportedly considering a $500 million convertible loan to bankrupt Spirit Airlines.
Credit: Eva Marie Uzcategui/Bloomberg via Getty Images

Key Takeaways

• Spirit Airlines stock jumped on Wednesday following reports the Trump administration is considering taking a stake in the beleaguered carrier as part of a financial assistance package.
• Most of the administration's equity investments have appreciated in value, but chasing the Trump bump and investing in bankrupt companies both come with risks.

Shares of Spirit Airlines soared Wednesday following reports the Trump administration is nearing a deal to save the bankrupt budget carrier from insolvency. 

The jump, driven by investors snapping up shares of bankrupt companies, is an example of a risky strategy generally considered inadvisable—though it can, at times, produce dramatic share-price moves. Spirit (FLYYQ) stock, which currently trades over-the-counter rather than on a major exchange, more than doubled to close yesterday at $1.50, its highest price since last August. It's given back much of that today, recently trading off some 20%. (Read Investopedia's full coverage of Thursday's trading here.)

The White House is considering lending Spirit $500 million in exchange for the option to take an equity stake in the company, according to the Wall Street Journal. The Commerce Department, Transportation Department, and President Donald Trump have all reportedly been involved in talks. Trump on Tuesday floated the idea of assisting Spirit.

“Spirit's in trouble, and I'd love somebody to buy Spirit," he told CNBC. "It's 14,000 jobs, and maybe the federal government should help that one out."

Why This Is Important

Anticipating what President Trump will do, whether with tariffs or deals with public companies, has emerged in the past year as a potentially lucrative pastime for risk-tolerant investors. But the Spirit Airlines deal reportedly being discussed comes with complications that increase the risk.

Spirit stock trades at a fraction of its previous value despite yesterday's gains. When the company exited bankruptcy last April, the stock resumed trading at nearly $9. It slid steadily in the following months and was worth $1.22 when the company filed for bankruptcy again in late August. It finished Wednesday a few cents over $1.50 and was recently below $1.20.

The Trump administration has taken equity stakes in a variety of private and public companies over the past year. For the most part, those investments have worked out well for shareholders: Intel (INTC) stock has nearly tripled in value since the U.S. took a 10% stake in the chipmaker in August. Shares of rare earths miner MP Materials (MP) are up 130% since the company struck a deal with the Defense Department last July. 

But chasing a Trump bump can be painful. Lithium Americas (LAC) stock has risen 60% since Sept. 24, when reports first emerged that the administration was exploring taking a stake in the lithium miner. But traders who bought at $7 a share on Oct. 1, when the deal was announced, are out 30% of their investment. Shares closed Wednesday just under $5.

Spirit’s bankruptcy makes buying especially risky. In bankruptcy proceedings, priority is given to bondholders and preferred stockholders. Common stockholders can have their stakes wiped out or diluted by the financial maneuvering of Chapter 11 bankruptcy; It is unclear what an agreement with the Trump administration would mean for existing Spirit shareholders. 

This article has been updated since it was first published to add context and reflect Thursday's trading.

Bitcoin is approaching $80,000 for the first time in months.
Credit: Thomas Trutschel / Photothek via Getty Images

Key Takeaways

• The recent action in bitcoin "is certainly from the extension of the ceasefire," a crypto asset manager said, as investors have been willing to take on more risk.
• But some experts says the average bitcoin investor is sitting at a loss and may be looking for spots to sell and break even.

A rally in risk assets is helping drive the price of bitcoin higher. Can it continue?

There are reasons to believe its rise might sputter, some experts say, but the leading cryptocurrecy has been performing lately. Bitcoin is up about 5% in the past 24 hours, today nearing $80,000—a level it hasn't seen since February—and rising alongside U.S. stocks on Wednesday as investors extended a run of risk appetite fueled by optimism about a resolution to the Iran conflict.

The latest move higher in bitcoin's prices is "certainly from the extension of the ceasefire," according to Gerry O'Shea, head of global market insights at crypto asset manager Hashdex. A return of the "institutional adoption" narrative—with Morgan Stanley (MS), Goldman Sachs (GS) and Charles Schwab (SCHW) all recently rolling out crypto products and services—is "helping fortify" those gains, O'Shea said in an interview with Investopedia.

WHY THIS MATTERS TO YOU

Digital assets experts are attributing the cryptocurrency's recent climb to the return of the "institutional adoption" story, but prices may not move meaningfully higher in the near future.

Bitcoin has outpaced both U.S. stocks, viewed as a risk asset, and gold, a haven asset, since the outbreak of fighting in Iran. Its perceived risk-reward profile after a steep pullback that cut prices in half from October peaks to February troughs likely helped, according to digital asset experts.

Bitcoin's correlation to equities dropped as prices declined, according to Jim Ferraioli, Director of Crypto Research and Strategy at Schwab Center for Financial Research. Since the start of the Iran conflict, bitcoin and the S&P 500 has had a near one-to-one relationship when U.S. stocks were falling, but bitcoin had 50% more upside relative to equities on up days, per Ferraioli's analysis.

"The risk-reward has reset because equities were starting at a higher valuation," he told Investopedia.

What might keep prices from going much higher from here are two "psychological" thresholds that may encourage investors to sell Ferraioli said. He estimates that the average bitcoin investor is sitting at a loss, with the average cost basis of spot bitcoin ETF investors at $83,000 and the average cost basis of bitcoin buyers on the secondary market, excluding crypto miners, at $78,000.

"It would make sense for investors to want to sell at those levels," he said, because they'd be breaking even after several months of declining prices.

Fuel prices have soared as oil shipments have been disrupted by the war.
Credit: Mohammed Al-Rifai / picture alliance / Getty Images

Key Takeaways

• The surge of inflation from the Iran War is likely to take two or three years to fully fade after the conflict ends, according to a new analysis.
• Historically, inflation spikes were slower to unwind if the source was related to oil, Oxford Economics found.
• High oil prices have pushed up costs for fuel, and could spread to other products and services as transportation costs rise.

If you have a child who's a sophomore in high school, they'll probably have graduated by the time the inflation from the Iran war fully fades.

That's the upshot of an analysis of past economic crises and oil shocks by economists at Oxford Economics released this week. The researchers found that in past instances where war disrupted oil supplies, it took two or three years for the inflation to fully dissipate. After a year, less than a third of it was typically gone.

That stands in contrast to inflation spikes that happened for reasons other than oil, which usually faded quickly. The oil-driven inflation after the Iranian revolution in 1979, the Ukraine war in 2022, and other conflicts was much slower to fade by comparison. Oxford looked at 94 such episodes in its analysis.

The research shed light on the likely economic impact of the war as the conflict drags on. As of Wednesday, a ceasefire remained in effect, but peace talks were stalled, according to reporting by The Wall Street Journal.

Crucially, the Strait of Hormuz was still closed to ship traffic, cutting off the 20% of the world's oil supply that normally travels through the strait on its way to international markets from the Persian Gulf. Brent crude, the international oil benchmark, was at $101 per barrel recently, up from around $70 on the eve of war.

What This Means For The Economy

While the U.S. is more insulated from oil shocks than it was in the 1970s, thanks to increased domestic production, the Oxford analysis highlighted how rapid oil price increases can reverberate through the economy for years after the fact.

Elevated prices for oil have pushed up gas prices in the U.S. by more than $1 a gallon, and fuel price increases could spread to other products as higher transportation costs are passed on down the supply chain.

Other products like aluminum and fertilizer have also seen large price increases, posing further inflation risks. Economists foresee a surge of consumer prices this year.

For example, forecasters at Goldman Sachs have penciled in prices as measured by Personal Consumption Expenditures rising 3.1% over the year in 2026, a full percentage point above their prewar forecast.

As Oxford and other experts have warned, those price hikes could persist for years. One reason for the lingering damage is that historically, oil exports from conflict zones have been slow to recover to prewar levels. Three years after the 1991 Gulf War, for instance, oil production in Iraq and Kuwait was still down more than 60%, Oxford found.

Those risks may not yet be reflected in financial markets, with major stock indexes hitting record highs despite the massive disruption to the global economy, according to Oxford.

"Despite the historical evidence of persistent economic scars from major oil supply shocks, business and investor reactions have been relatively contained to date," Jamie Thompson, head of macro scenarios at Oxford wrote. "This highlights the risk of an abrupt adjustment in sentiment, particularly in the event of a more prolonged US/Israel war with Iran."

Jason Bonfig will take over from Corie Barry as CEO of the consumer electronics retailer effective Nov. 1.
Credit: Mike Campbell / NurPhoto via Getty Images

Key Takeaways

• Best Buy on Wednesday announced CEO Corie Barry will step down after seven years leading the company. She will be replaced by chief customer, product and fulfillment officer Jason Bonfig effective Nov. 1.
• Aside from a pandemic-driven surge, Best Buy's sales and stock stagnated under Barry as the company grappled with increased competition from digital marketplaces like Amazon and, in recent years, inflation-pinched consumers.

Can a new leader make Best Buy stock a better buy?

Best Buy (BBY) on Wednesday announced CEO Corie Barry would step down as the head of the electronics retailer later this year to be replaced by company veteran Jason Bonfig, who currently serves as chief customer, product and fulfillment officer. 

Barry, a 27-year vet of Best Buy and its CEO since June 2019, steered the retailer through the Covid-19 pandemic and last year's tariff turmoil. Bonfig, who has also spent 27 years at the company, will take the helm on November 1.

Why This Is Important

Best Buy's sluggish growth over the past decade reflects consumers' increasing preference for online shopping and, especially in recent years, bargain-hunting. The appointment as CEO of Jason Bonfig, who is credited with leading the expansion of Best Buy Ads and Marketplace, suggests the company is prioritizing its nascent services businesses in a bid to return to growth.

Best Buy has struggled with sluggish sales in recent years as consumers, pinched by years of elevated inflation and economic uncertainty, cut back on big discretionary purchases, exacerbating immense competitive pressure from the likes of Amazon (AMZN) and Walmart (WMT). Sales declined for 14 consecutive quarters starting at the end of 2021. Full-year revenue fell nearly 20% between 2021, when pandemic-era stimulus was still fueling a nationwide shopping spree, and last year. Best Buy’s quarterly and annual sales finally returned to growth in 2025. 

To stay profitable, the company significantly scaled back its business. Best Buy has shuttered more than 160 stores since 2020 and reduced its workforce from 125,000 to about 82,000. The company continued to post profits—albeit, of varying sizes—throughout its post-pandemic struggles and increased its dividend in each of the last 12 years. 

Best Buy, like other brick-and-mortar retailers adjusting to an increasingly digital world, is leaning into services. The company in early 2022 launched Best Buy Ads, a key growth priority that is currently overseen by Bonfig. 

The company took a page out of the Amazon playbook last year when it launched Best Buy Marketplace, a platform for third-party sellers that the company says more than doubled the number of products available to buy through Best Buy. Walmart and Target (TGT) have launched similar programs to match the convenience and variety of Amazon. 

Those efforts have done little to assure Wall Street. Shares ripped higher in 2020 as Americans in lockdown splurged on at-home entertainment and work stations. Shares closed at a record of $138 in late 2021 before losing half their value over the following 12 months as inflation surged and interest rates climbed. Shares traded at roughly $64 Wednesday afternoon, almost exactly where they were when Barry took the helm on June 11, 2019.

For many on Wall Street, Walmart is the North Star for retailers. Revenue at America’s largest retailer has grown every quarter since 2016 as it’s seized opportunities in groceries, advertising, third-party selling, and fulfillment. It's stock has more than tripled in value since the start of 2020.

Wall Street analysts aren’t all that optimistic about the outlook for Best Buy. Three of seven analysts tracked by Visible Alpha with current ratings on the stock call it a “Buy.” Three others recommend holding the stock and one recommends selling. The average price target of $72.71 represents about 9% upside from Tuesday’s close.