The S&P 500 reached record highs at 7,580.06, driven by strong earnings momentum (FEMO) rather than irrational exuberance. Technology stocks lead with projected 47.2% EPS growth in 2026, while valuations remain reasonable compared to the 1990s tech bubble. Analyst consensus forecasts S&P 500 operating EPS at $339.24 for 2026 and $394.52 for 2027. Investor sentiment remains cautious, suggesting further upside potential.

Goldman Sachs cut Figma's price target to $30 from $35, but the article argues this could signal a buying opportunity. Despite an 80% decline from its IPO peak, Figma shows strong fundamentals with 46% YoY revenue growth and improved valuation metrics. Historical precedents with Apple and Netflix suggest price target cuts can precede stock recoveries.

Netflix is presented as a potentially undervalued stock opportunity, with the streaming pioneer being overlooked by investors who are focused on AI investments. The company boasts over 300 million paying subscribers and may represent an attractive buying opportunity in June.

Netflix stock has fallen 27% over the past year despite strong fundamentals. The article highlights three reasons for optimism: the lucrative end of the Warner Bros. Discovery deal that netted a $2.8 billion termination fee, upcoming Q2 earnings in mid-July that could show strong results following a subscription price hike, and an attractive valuation at 22x 2027 earnings—a three-year low. With the annual shareholder meeting on June 4, Netflix has an opportunity to regain investor confidence.

The Motley Fool presents a portfolio of five undervalued stocks with potential for long-term shareholder wealth growth. The article highlights stocks suitable for buy-and-hold investment strategies, with stock prices referenced from May 25, 2026.

The article recommends three beginner-friendly growth stocks poised to outperform the market through 2030: Alphabet, leveraging its dominance in search and cloud computing; MercadoLibre, positioned as Latin America's Amazon with strong e-commerce growth; and GE Vernova, benefiting from surging demand for power generation equipment driven by AI data centers.

The article recommends three growth stocks for long-term 20-year portfolios: Remitly Global, a digital remittance disruptor with 25% revenue growth; Coupang, a South Korean e-commerce company down 70% from highs with Amazon-like potential; and Nu Holdings, a Latin American digital bank with 135 million customers and 42% revenue growth, all trading at attractive valuations.

Roku's stock has underperformed despite strong business fundamentals. The streaming platform has grown to over 100 million households and is shifting focus from device sales to monetizing users through advertising and subscriptions. Platform revenue surged 28% year-over-year, with advertising and subscription revenues both showing strong growth, positioning Roku for continued upside despite cyclical ad market risks.

IMAX is reportedly exploring a potential sale, approaching entertainment firms about a transaction, though discussions remain early. The company's strong 2025 performance—including record global box office, 166 new theater signings, and expanding content beyond traditional Hollywood—makes it an attractive target. IMAX shares surged 12.16% in after-hours trading.

Netflix and Booking Holdings, both down 25% over the past year following stock splits, are presented as attractive long-term buys. Netflix benefits from a massive addressable market in streaming and expansion into live sports and advertising. Booking Holdings has growth opportunities in Asia and a strong competitive moat from network effects, despite AI disruption concerns.

Inflation is resurging with CPI at 3.8% and PPI at 1.4% month-over-month, driven by energy costs, supply chain bottlenecks from AI infrastructure spending, and Middle East conflicts disrupting commodity supplies. While mega-cap tech companies continue AI spending unaffected, consumers face wage-inflation gaps and margin pressures. The market shows a K-shaped recovery with resilient luxury/essentials retailers thriving while mid-market discretionary companies face significant headwinds.

S&P 500 earnings growth expectations for 2026 are being inflated by one-time gains from major tech companies. Excluding one-time paper gains from Alphabet ($3.01/share), Amazon ($1.54/share), and Netflix's Warner Bros termination fee ($0.65/share), the actual year-over-year EPS growth is closer to 22% rather than the reported 26%. The Treasury yield curve has steepened significantly, with concerns about the 10-year yield potentially moving above 5%. The article also discusses potential impacts from geopolitical developments with Iran and their effect on oil prices and inflation.