Dear Friend,
Musk needed batteries. He built the Gigafactory.
Needed solar. Acquired SolarCity.
Needed data. Bought Twitter.
The pattern is clear: when a supplier becomes mission-critical, Musk doesn't negotiate. He acquires.
Right now, the most critical supplier in his $1.75 trillion empire is a small power infrastructure company — the one building the equipment Colossus literally can't run without.
For Musk, acquiring it would be pocket change.
For investors who own it before that happens, it could be life-changing.
Dylan Jovine has the name and ticker.
See the stock Musk's playbook says he needs >>
"The Buck Stops Here,"
Kelly Maguire
Behind the Markets
The Smart Glasses Gold Rush Is Leaving Old-School Eyewear Behind
Author: Jeffrey Neal Johnson. Publication Date: 5/24/2026.
Key Points
- The Meta-EssilorLuxottica partnership sold over seven million Ray-Ban AI-integrated frames in 2025, confirming mainstream consumer demand for smart eyewear.
- Technology hyperscalers controlling software ecosystems, such as Alphabet and Samsung, are outperforming eyewear brands as hardware risks commoditization and margin compression.
- Warby Parker's stock fell nearly 15% after its Android XR partnership reveal, as investors penalized its role as a commoditized hardware partner without a software moat.
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The augmented reality (AR) and virtual reality (VR) adoption curve has reached a structural inflection point, shifting quickly from high-friction headsets to mass-market, AI-integrated smart eyewear. Backed by strong commercial traction from early incumbents, the rollout of the Android XR ecosystem signals a potentially lucrative hardware supercycle. For investors, this shift suggests significant upside for the hyperscalers and precision manufacturers that capture the convergence of optics and electronics, while traditional brands could face meaningful headwinds.
For years, spatial computing was viewed as a niche category defined by isolating headsets, a market perpetually waiting for its breakout moment. That narrative is now outdated. The catalyst that showed the market had crossed into mainstream adoption came from the partnership between Meta Platforms (NASDAQ: META) and EssilorLuxottica (OTCMKTS: ESLOY). The alliance sold more than seven million units of its Ray-Ban AI-integrated frames in 2025 alone, a figure that points to strong consumer demand for ambient wearable technology that fits naturally into daily life. That success has now forced a competitive response, officially igniting the smart glasses war.
Platform Wars: Choosing Your Champion
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When the SpaceX IPO launches, most retail investors will be locked out. The banks, funds, and insiders get in early - while everyone else waits on the sidelines.
But one small infrastructure supplier - a critical piece Musk can't scale the Colossus network without - is still trading well under institutional radar. A new briefing reveals the name and ticker at no cost.
Get the SpaceX infrastructure stock name and ticker hereThe battle for market share is quickly consolidating around two major ecosystems. On one side is the incumbent Meta-EssilorLuxottica alliance, which benefits from the strong brand recognition of Ray-Ban and Meta HorizonOS's established user base.
On the other side is the newly unveiled Android XR platform, a formidable collaboration led by Alphabet (NASDAQ: GOOGL) and Samsung (OTCMKTS: SSNLF). This ecosystem aims to mirror the open-source success of the Android smartphone model, where a common operating system drives innovation across multiple hardware partners.
Google provides the Gemini AI software and operating system, Samsung contributes core processing and component expertise, and fashion-forward eyewear companies like Warby Parker (NYSE: WRBY) serve as the initial hardware and distribution partners.
However, the market's reaction to this unveiling offers a critical clue about where value is expected to accrue. In the two days after the announcement, Warby Parker's stock price fell nearly 15%. Investors were unimpressed by the news that its first-generation product would be audio-only, lacking the integrated visual display that many consider essential to true augmented reality.
This immediate and sharp repricing suggests the market sees Warby Parker not as a technology peer, but as a commoditized hardware partner — essentially a stylish casing for Google's powerful software. WRBY's staggering price-to-earnings (P/E) ratio, which exceeds 1,200x, is difficult to justify without a proprietary software moat. A pattern of recent insider selling, including significant stock disposals by a director and the CEO, further reinforces this bearish sentiment.
Where the Real AR Money Is Made
While facing new competition, incumbent EssilorLuxottica is not standing still. Despite EssilorLuxottica's stock price coming under pressure and declining more than 35% year-to-date as investors price in a more fragmented market, the company is making strategic moves to build a defensible moat. The recent acquisition of Faro, a specialized Italian manufacturer known for high-precision milling, is a clear attempt to control the means of production.
By internalizing the complex engineering required to embed technology into frames without compromising design, EssilorLuxottica is betting on advanced manufacturing as a key differentiator.
This creates a physical bottleneck that software-focused partners and lower-cost assemblers may struggle to replicate.
EssilorLuxottica's strategy stands in stark contrast to the tech giants' approach.
The market is clearly rewarding the companies that own the underlying software and core infrastructure. Alphabet's stock price, for example, has climbed about 25% year-to-date.
Those gains are not tied to the physical frames, but to the immense value of the AI models, operating systems, and semiconductor chips that power the entire experience. Alphabet's recent joint venture with Blackstone to build a next-generation AI data center empire underscores this point. Alphabet is investing billions in the foundational infrastructure that will support not just smart glasses, but a broader universe of AI-driven services. For tech hyperscalers, smart glasses are simply another endpoint, another vehicle to deploy high-margin software and collect valuable data.
A Clear-Eyed View of AR Investment
The emerging smart glasses supercycle is less about the brand on the frame and more about the operating system running inside it. The central conflict is a three-way race between Meta's HorizonOS, Google's Android XR, and Apple's (NASDAQ: AAPL) visionOS. These software platforms represent the true long-term moats that will help determine market leadership over the next decade.
This structural shift requires investors to recalibrate how they approach exposure to the AR/VR thesis. The data suggests that while eyewear brands may benefit from volume growth, they also face the risk of severe margin compression as hardware becomes more commoditized.
The primary beneficiaries appear poised to be the technology providers that control the software ecosystems and the key component suppliers. Of course, this sector is not without risks. Significant macro headwinds could emerge from regulatory bodies concerned about the privacy implications of always-on cameras and microphones. Furthermore, Samsung's current labor disputes in South Korea could create near-term supply chain disruptions and margin pressure.
Investors with a long-term thesis on spatial computing may want to monitor the hyperscalers that own the emerging operating systems, as they appear to be capturing the lion's share of the value chain. For those seeking exposure to the physical hardware, the key differentiator may not be brand recognition, but proprietary manufacturing capabilities that can defend against commoditization. The recent market volatility suggests that in the new era of wearable AI, a powerful software stack is proving to be a much more durable asset than a stylish frame.
Peloton Stock Gives Back Gains After Upbeat Earnings Report
Author: Jennifer Ryan Woods. Publication Date: 5/16/2026.
Key Points
- Peloton reported stronger-than-expected third-quarter revenue, returned to profitability, and raised its free cash flow outlook as the company continues working through its long-running turnaround effort.
- Peloton’s commercial business was a strong performer during the quarter, with revenue rising 14% year over year, and could become a significant long-term growth opportunity for the company.
- Although shares initially rallied following earnings, the stock later gave back most of those gains, suggesting Wall Street may be waiting for more consistent signs that Peloton’s turnaround can drive sustainable growth.
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Shares of Peloton Interactive Inc. (NASDAQ: PTON) have been trying to stage a comeback after hitting a 52-week low in mid-March.
The stock has climbed more than 40% since then, as the market has seemingly begun to buy into the idea that the company’s long-running turnaround effort may finally be gaining traction.
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When the SpaceX IPO launches, most retail investors will be locked out. The banks, funds, and insiders get in early - while everyone else waits on the sidelines.
But one small infrastructure supplier - a critical piece Musk can't scale the Colossus network without - is still trading well under institutional radar. A new briefing reveals the name and ticker at no cost.
Get the SpaceX infrastructure stock name and ticker herePeloton’s latest earnings report added to that optimism, with shares rallying after the company reported fiscal third-quarter 2026 results on May 7. However, the stock has since given back most of those gains, leaving some investors wondering whether it’s time to get back on the bike.
Peloton Delivers Encouraging Earnings
Peloton’s Q3 results for fiscal year 2026 (FY2026) offered several encouraging signs for investors. The company reported revenue of roughly $631 million, up 1% year over year and nearly $13 million above Wall Street expectations. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) came in at $126 million, up 41% from the previous year, while net debt declined 70% year over year.
The company also returned to profitability, reporting net income of $26 million. Earnings per share of 6 cents improved from a loss of 12 cents in the year-ago quarter, though results came in a penny below expectations. Gross margin rose 90 basis points year over year to 52%, but came in below the company’s guidance due to promotions on its connected fitness equipment.
Commercial Business and Spotify Partnership Offer Growth Opportunities
The commercial business unit was a strong performer during the quarter, with revenue rising 14% year over year. The company is looking to build on that momentum with the release of new commercial products, including a bike and a treadmill, expected in the second quarter.
In the company’s earnings call, Chief Executive Peter Stern addressed the opportunity in the commercial space, saying, “We see tremendous upside in this category as we estimate that we have only a 3% share of the more than $10 billion and growing global commercial fitness equipment market segment.”
Peloton also announced a partnership with Spotify Technology (NYSE: SPOT), which will bring more than 1,400 classes to Spotify Premium users worldwide.
Guidance Offers a Mixed Picture
Peloton updated its 2026 outlook as well, increasing the midpoint of its 2026 revenue guidance to a range of $2.42 billion to $2.44 billion and raising its free cash flow outlook to around $350 million, up $75 million from its prior minimum target.
On the flip side, the company lowered its total gross margin outlook by 50 basis points from earlier guidance to 52.5%. The adjusted EBITDA outlook remained in line with earlier guidance at $470 million to $480 million. The company said it expects ending paid connected fitness subscriptions to decline 8.6% year over year at the midpoint, to a range of 2.55 million to 2.57 million.
Wall Street Remains Cautiously Optimistic
Investors initially cheered the report, with shares rising more than 16% at one point during the session before closing up nearly 9% for the day. In the sessions that followed, however, optimism appeared to fade as shares fell in three of the next five trading days, giving back nearly 11%. Currently, shares are trading roughly where the stock closed before the earnings report.
Following the earnings release, Goldman Sachs Group, Inc. increased its price target on Peloton to $8 from $7, while Weiss Ratings modestly upgraded the stock from Sell (D) to Sell (E+), suggesting some improvement in the company’s outlook even though the firm maintained a bearish stance on the stock.
The current consensus rating on the stock is Hold, with eight Hold ratings, five Buy ratings, and one Sell rating.
On average, Wall Street still sees meaningful upside for the stock over the next 12 months. The average price target of $8.25 is roughly 55% above the current share price.
Based on price targets issued or updated over the last year, analyst targets range from $5 to $12, though most imply upside from current levels.
Short Interest Has Improved, But Skepticism Remains
Short interest in Peloton shares has declined over the last few months, suggesting at least some investors may be becoming less bearish on the stock.
Total shares sold short fell from around 67 million shares in mid-February to about 54.5 million shares at the end of April. The percentage of float sold short declined from 16% to 13% during the period.
Peloton is still working through several challenges, including declining subscriptions and margin pressure. However, the company’s latest earnings report suggested its turnaround efforts may be gaining traction, as growth in the commercial business, improved profitability, and stronger free cash flow guidance offered encouraging signs.
Still, the stock’s inability to hold onto its post-earnings gains suggests investors may be waiting for more consistent signs that the turnaround can translate into sustainable long-term growth.
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