Dear Friend,
Elon Musk is so desperate for electricity…
He shipped a power plant across the ocean.
He’s running dozens of gas turbines around the clock.
And by some estimates, he’s burning nearly $1 billion a month — because he can’t turn on the world’s largest supercomputer without equipment that takes up to 2 years to get.
One small company can deliver it on his timeline.
Wall Street hasn’t connected the dots yet.
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The Buck Stops Here,
Dylan Jovine
Behind the Markets
Domino's Pizza: Outlook for the Berkshire Holding After Q1 Drop
Reported by Leo Miller. Posted: 4/29/2026.
Key Points
- Berkshire Hathaway has stood by its position in Domino's Pizza for more than a year amid the stock's weak performance.
- Domino's shares took a significant tumble after the company's latest earnings report, as macro factors and competition hurt sales.
- Domino's is expanding while customers close down stores, but it is questionable whether the juice in this stock is worth the squeeze.
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Warren Buffett's Berkshire Hathaway (NYSE: BRK.B) isn’t afraid to take stakes in companies that the market is sour on. One of those names is Domino’s Pizza (NASDAQ: DPZ). Berkshire initiated a position in Domino’s during Q3 2024, purchasing 1.3 million shares.
Despite the stock being essentially flat from then to the end of 2025, Berkshire has more than doubled its stake to over 3.4 million shares.
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👉 Unlock the ticker now and get it completely free.That behavior is emblematic of Berkshire’s long-term investment style: continuing to buy a stock it views as undervalued even when the broader market is negative on it.
Domino’s started 2026 poorly, with shares down nearly 20%. Much of the decline followed the company’s latest earnings report, which knocked the stock roughly 9% in one day. After a difficult quarter, here’s where Domino’s stands going forward.
Domino’s Misses, Lowers Guidance for 2026
In Q1 2026, Domino’s reported revenue of $1.15 billion, just under expectations of $1.16 billion. Overall revenue rose 3.5% year over year. The bigger disappointment was adjusted earnings per share, which fell nearly 5% year over year to $4.13, versus analysts’ expectations of $4.29 (an implied decline of about 1%).
U.S. same-store sales increased only 0.9%, indicating that most of Domino’s growth came from new store openings rather than improved performance at existing locations. While new stores are a valid growth driver, they don’t provide an apples-to-apples read on the underlying health of the business: expanding the store base can lift sales without reflecting stronger demand at existing stores.
Domino’s also lowered guidance for the full year, forecasting “low single digits” same-store sales growth in both U.S. and international markets. That compares with earlier expectations of about 3% in the U.S. and 1%–2% internationally. While “low single digits” overlaps with those ranges, it effectively represents a downgrade because the new wording allows for growth barely above 0%.
Weak Consumer, Elevated Competition Hit Domino’s
Domino’s attributed the weak quarter to several factors. The company noted that consumer sentiment has fallen to lows not seen since the COVID pandemic. Even with Domino’s emphasis on affordability, weak consumer sentiment hurts restaurant demand and helps explain the sluggish same-store sales — customers likely made fewer repeat visits. That said, same-store sales have averaged roughly 2.3% since early 2023, suggesting some scope for a rebound if sentiment improves.
Competition also tightened. Rivals leaned into promotions and discounts in areas where Domino’s has traditionally competed on price. However, several top competitors are themselves under pressure. Pizza Hut (a Yum! Brands (NYSE: YUM) subsidiary) plans to close 250 stores in 2026, while Papa John’s (NASDAQ: PZZA) is reportedly planning to close about 300 North American stores in 2026–2027. By contrast, Domino’s intends to open more than 175 U.S. stores in 2026.
Lower prices favor scale: companies must offset lower sales per order with higher order volume to maintain revenue. Among these chains, Domino’s is the only one still expanding its footprint, which raises questions about whether Pizza Hut and Papa John’s can sustainably match Domino’s pricing while shrinking their store counts.
Domino’s: Long-Term Value Doesn’t Guarantee Outperformance
Domino’s has grown free cash flow at a compound annual rate near 16% since Q1 2023. The stock’s current valuation implies long-term free cash flow growth of less than half that rate. That FCF strength came despite revenue contracting in 2023 and expanding only about 5% in 2024 and 2025; much of the improvement has come from margin expansion. The firm’s free cash flow margin is up roughly 400 basis points since Q1 2023, which has driven FCF growth faster than sales growth.
As a leader in a mature pizza market, Domino’s is unlikely to sustain materially higher growth rates than those seen recently. Continued margin expansion is therefore crucial to the stock’s outlook. Domino’s low pricing, operational efficiency and continued store openings support the possibility of further margin gains.
The MarketBeat consensus price target for Domino’s sits near $421, implying more than 20% upside. However, targets moved down materially after the latest report, with the average of immediately updated targets near $407.
There appears to be some value in Domino’s shares. That said, given the company’s position in a mature industry, it seems unlikely the stock will outperform the S&P 500 Index over the long term from current levels. It will be worth watching what Berkshire Hathaway does with its Domino’s stake over the coming quarters — particularly now that Warren Buffett has retired.
Broadcom & Meta Extend AI Pact Into 2029 as Shares Climb to $400
Reported by Leo Miller. Posted: 4/21/2026.
Key Points
- Broadcom is back up from its lows, expanding several key AI partnerships along the way
- Broadcom received its latest AI expansion from Meta Platforms, with the companies set to collaborate on custom chips through 2029
- As Broadcom hits $400 again, its forward P/E ratio is down substantially, a positive sign going forward
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After sliding more than 25% to below $300 per share earlier this year, semiconductor giant Broadcom (NASDAQ: AVGO) has staged a sizable recovery. Now trading near $400, the stock is up more than 10% in 2026 and has rebounded over 30% from its 2026 lows.
In early April, Broadcom expanded its artificial intelligence (AI) chip partnerships with Google parent Alphabet (NASDAQ: GOOGL) and Anthropic, providing a meaningful boost to the shares. About a week later, Broadcom announced an expansion of its partnership with another major customer: Meta Platforms (NASDAQ: META).
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👉 Unlock the ticker now and get it completely free.Importantly, amid these developments and Broadcom’s return to ~$400, the stock’s forward price-to-earnings (P/E) ratio has fallen substantially as analysts have raised forward earnings estimates. That lower forward P/E reduces the risk of a repeat of the late-2025 to early-2026 drawdown.
Meta and Broadcom Work on 2nm AI Chips, Extend Partnership Through 2029
With their latest announcement, Broadcom and Meta confirmed their business relationship will continue for years. The firms will collaborate on future generations of Meta’s custom AI chips over the next three years, extending the partnership through 2029. Although the long-standing relationship was already well established, this formal extension gives Broadcom clearer revenue visibility.
Broadcom and Meta say they will roll out what they describe as the world’s first two-nanometer (2nm) AI accelerator — a notable technical milestone. Smaller process nodes are often shorthand for “more advanced,” indicating both companies are working at the leading edge of chip technology. Still, node size is only one factor in overall performance; architecture, packaging and system integration also matter.
Following the deal, Broadcom CEO Hock Tan will not run for re-election to Meta’s Board of Directors.
Price Targets Hold Steady Amid Meta Announcement
The companies say their initial commitment exceeds one gigawatt (GW) and is the first phase of a multi-GW rollout. That aligns with Broadcom’s previous comments on Meta during its last earnings call. Analysts use GWs to describe the scale of data-center deployments, and a multi-GW agreement with Meta could be financially significant. Bernstein analyst Stacy Rasgon estimates Broadcom generates roughly $20 billion in revenue per GW.
Broadcom and Meta’s partnership also covers networking components in addition to custom AI processors. Networking hardware — including Ethernet switches that route data and enable chip-to-chip communication — is a major part of Broadcom’s AI business. For the next quarter, Broadcom expects total AI revenue to rise 76% year over year to $14.8 billion, with roughly 40% of that coming from networking (about $5.92 billion).
On the day of the Meta announcement, Broadcom shares rose roughly 4.2%. MarketBeat has not tracked any Wall Street analyst target changes since the release, likely because much of the news had already been anticipated.
Still, the confirmation that the Meta–Broadcom relationship runs through 2029 is a constructive development for the company’s outlook.
Despite limited analyst upgrades amid the recent share-price gains, Wall Street remains generally bullish on Broadcom. The MarketBeat consensus price target for AVGO is near $435, implying just under 10% upside. Targets updated after Broadcom’s most recent earnings report are more optimistic — they average about $489 (suggesting >20% upside), with a range of approximately $450 to $545.
Financials and Outlook Catch Up: Broadcom’s Forward P/E Falls Despite Return to $400
Investors will recall the last time Broadcom traded near $400 was in early December 2025, when the stock closed at an all-time high of $411. From that peak, AVGO fell roughly 29% through late March, so renewed trading near $400 can naturally raise concern.
There is, however, a key difference between a $400 price today and the $400 price in December 2025: in December the stock’s forward P/E was about 47x–49x, whereas AVGO’s forward P/E today is near 30x.
That decline reflects meaningful improvements in Broadcom’s financials and outlook. The stock now trades at a similar price but with higher expected earnings, which has pushed the forward P/E down by more than 30%. In short, Broadcom’s current price is better supported by near-term earnings expectations, making a repeat of the December decline less likely. The company’s roughly 30x forward P/E sits just above its three-year average of 29x.
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