BofA Securities has double-downgraded its rating on Booz Allen Hamilton BAH -8.86% ▼ stock after the defense and consulting company posted weak Q2 results and slashed its full-year outlook. The downgrade reflects concerns over the slowdown in the company’s Civil business segment, which accounts for about one-third of its revenue.

Elevate Your Investing Strategy:

• Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.

The research firm lowered the rating on BAH stock to Sell from Buy and sharply reduced the price target to $90 from $160.

Q2 Results Snapshot

The company’s adjusted earnings of $1.49 per share missed the analysts’ expectations of $1.51. Also, revenue declined 8.1% year-over-year to $2.89 billion and came in below the Street’s forecast of $2.97 billion.

The decline is driven by a 22% drop in the civil business, which the company attributed to a slowdown in contract awards and an uncertain government funding environment.

To address the revenue slowdown, Booz Allen is taking major cost-cutting measures, such as laying off senior-level positions.

Meanwhile, backlog grew 2.9% to $40 billion, and its book-to-bill ratio stood at 1.7x, suggesting strong long-term demand.

Lower Outlook

Importantly, Booz Allen has lowered its guidance for Fiscal 2026 due to ongoing budget uncertainties in the government sector.

It now projects revenue to be between $11.3 billion and $11.5 billion, down from the previous guidance of $12 billion to $12.5 billion. Also, adjusted EPS has been revised down to a range of $5.45 and $5.65 per share, compared to the earlier range of $6.20 to $6.55.

The company also warned that the ongoing U.S. government shutdown could have a further negative impact on its business.

BofA Warns of Steeper Civil Revenue Decline

BofA said it had “underestimated the extent of the challenges” in Booz Allen’s Civil business segment. The firm pointed to ongoing budget uncertainty and the looming threat of a government shutdown as key risks.

It now expects a 30% drop in Civil revenue in the second half of fiscal 2026 and the first half of fiscal 2027, far steeper than the earlier forecast of a 5% decline.

While Booz Allen continues to perform well in its National Security portfolio and advanced tech such as AI and cyber, BofA does not expect that to offset near-term pressure.

What Is the Price Target for BAH?

Turning to Wall Street, BAH stock has a Hold consensus rating based on two Buy, five Hold, and three Sell ratings assigned in the last three months. At $115.63, the average Booz Allen stock price target implies a 26.51% upside potential.

See more BAH analyst ratings

Disclaimer & DisclosureReport an Issue

Bitcoin (BTC-USD) is naturally the first digital coin that comes to mind when the subject of cryptocurrencies comes up. From institutional investors to everyday traders, Bitcoin is often viewed as the ultimate measure of sentiment in the crypto market – the one that sets the tone for the rest.

Elevate Your Investing Strategy:

• Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.

That, says top investor Neil Patel, is entirely justified. Its dominance is well-earned thanks to its strong brand recognition, first-mover advantage, powerful network effects, and massive $2.2 trillion market cap. Yet, Patel notes, investors looking beyond Bitcoin might uncover other intriguing opportunities in the crypto universe.

Among the contenders, XRP (XRP-UDS) and Dogecoin (DOGE-USD) stand out – though for very different reasons. Dogecoin earned its fame as the original meme coin, while XRP was created to challenge the inefficiencies of traditional cross-border payments. The question for investors, then, is which of the two presents the better buying opportunity.

Dogecoin’s story is well known. What began in 2013 as an internet joke quickly evolved into a multi-billion-dollar asset. Its cultural status, driven by an enthusiastic online community and high-profile fans like Elon Musk, helped it climb into the top ten cryptocurrencies, with a market cap north of $29 billion. However, its rallies have mostly been propelled by hype rather than fundamentals. A single tweet or wave of retail enthusiasm can send prices soaring, only for them to tumble just as quickly.

That volatility stems from deeper issues. Dogecoin’s real-world utility remains limited, and its development community is small. More importantly, its unlimited supply (roughly 151 billion DOGE in circulation with 5 billion new coins minted each year) makes long-term appreciation difficult.

As Patel bluntly puts it, “This crypto is nothing more than a tool for speculation. It’s difficult for any long-term investor to consider owning it with a five- or 10-year time horizon.”

XRP, by contrast, has tried to distance itself from speculative mania by focusing on utility. Its mission is to enable fast, low-cost international transactions, using XRP as a bridge currency between fiat systems. Payments settle in seconds, at minimal cost, and Ripple (the company behind XRP) continues to expand partnerships across the global financial ecosystem in pursuit of mainstream adoption.

That said, the road ahead isn’t free of obstacles. The global payments landscape is dominated by entrenched financial giants that aren’t eager to cede ground, and the rapid ascent of stablecoins adds further competition. Even with Ripple launching its own stablecoin (RLUSD), it remains a small player compared to dollar-pegged tokens commanding hundreds of billions in value.

Still, when Patel weighs the two cryptos side by side, his preference is clear. “Despite lots of uncertainty, I still view XRP as the much better investment option than Dogecoin,” said the 5-star investor, who ranks among the top 4% of stock pros on TipRanks. “Over the next decade, the former has more potential than the latter.” (To watch Patel’s track record, click here)

To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Disclaimer & DisclosureReport an Issue

Advanced Micro Devices AMD +7.63% ▲ stock soared on Friday after tech company International Business Machines IBM +7.88% ▲ commented on the use of the semiconductor company’s chips for quantum computing tasks. According to IBM, common chips from AMD can be utilized for algorithms that are key to quantum computing, reports Reuters.

Elevate Your Investing Strategy:

• Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.

AMD’s use in quantum computing is tied to inherent flaws in the system. The qubits used can produce large amounts of data in little time, but are prone to errors. That’s where AMD comes in. Processors developed by the company are powerful enough to correct these mistakes, helping maintain a quick turnaround time for results with fewer errors. IBM noted that the AMD chips it used for this weren’t “ridiculously expensive.”

The chips that IBM used for its quantum computing correction algorithm were field-programmable gate array (FPGA) models made by AMD. The company wrote its own algorithm to use these chips alongside its quantum computing systems. IBM’s decision to base this algorithm on chips from AMD is a huge boon to the company, which has been working to challenge rival Intel INTC +0.31% ▲ in consumer and AI sectors.

AMD Stock Movement Today

AMD stock was up 5.36% on Friday, extending a 104.97% year-to-date rally. The shares have also increased 50.41% over the past 12 months. The positive movement for AMD stock is tied to the AI boom, as demand for its server components has increased. News of its use in quantum computing could boost shares even higher.

Is AMD Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for AMD is Moderate Buy, based on 29 Buy and 10 Hold ratings over the past three months. With that comes an average AMD stock price target of $249.92, representing a potential 0.63% upside for the shares.

See more AMD stock analyst ratings

Disclaimer & DisclosureReport an Issue

Friday is here, and investors still have stock market news to read about before the weekend starts. Let’s get into that with a list of the top market happenings traders need to know about today.

Elevate Your Investing Strategy:

• Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.

• Coinbase Global COIN +9.82% ▲ stock rose after the crypto company received an upgrade from a top analyst.
• Procter & Gamble PG +0.88% ▲ stock rallied after the consumer goods company posted a strong earnings beat.
• Super Micro Computer SMCI +0.77% ▲ stock gained after the semiconductor company received an analyst price target increase.
• Amazon AMZN +1.41% ▲ stock gained alongside analyst updates ahead of its next earnings report.
• Genenta Science GNTA +91.95% ▲ stock rocketed higher after the clinical-stage biotechnology company announced a strategic partnership.
• Alphabet GOOGL +2.70% ▲ and Disney DIS -1.19% ▼ stocks were on the move today amid a feud over streaming rights.
• Intel INTC +0.31% ▲ stock climbed on analyst updates following its latest earnings report.
• Wellgistics Health WGRX +185.43% ▲ stock surged after the pharmaceutical company announced a blockchain collaboration.
• MultiSensor AI MSAI -28.77% ▼ stock plummeted after the AI-powered multi-sensing platform company priced a private placement.
• Tesla TSLA -3.40% ▼ stock was volatile following the release of the EV maker’s latest earnings report.
• Advanced Micro Devices AMD +7.63% ▲ stock soared after International Business Machines IBM +7.88% ▲ said it used the company’s chips in quantum computing systems.
• Microsoft MSFT +0.59% ▲ stock was up on reports of the tech giant’s strict profit margins for Xbox.
• JPMorgan Chase JPM +2.00% ▲ stock was boosted by news that the financial firm will start accepting crypto as collateral for loans.
• Stocks were up today after the latest inflation report came in softer than expected.
• Apple AAPL +1.25% ▲ stock jumped after the tech leader started shipping advanced AI servers from its new factory in Houston, Texas.

Read more of the top stock market stories at TipRanks.

Disclaimer & DisclosureReport an Issue

Tesla (NASDAQ:TSLA) shares appear to be zigzagging between the red and black in Thursday’s trading, after the company generated record revenue in Q3 while missing expectations on the bottom line.

Elevate Your Investing Strategy:

• Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.

In the quarter, revenue climbed by 11.6% year-over-year to $28.09 billion, beating the Street’s forecast by $1.39 billion, with the company benefiting from consumer purchases ahead of the expiration of the $7,500 EV tax credit on September 30.

Yet, at the other end of the spectrum, profit dropped by over a quarter as higher costs from US tariffs and heavy spending on its shift toward robotics and AI eroded margins. Adj. net income declined 29% y/y to $1.8 billion, falling shy of the Street’s forecast of $1.9 billion, while operating margins nearly halved to 5.8% from 10.8% in the year-ago period. The end result was adj. EPS of $0.50, missing consensus by $0.06.

A bright spot was the Energy Generation and Storage segment, which generated $3.41 billion in revenue – up 44% y/y and ahead of the $3.20 billion analysts called for. The strong performance was driven by growing energy storage deployments, supported by the rollout of the Megapack 3 and Megablock systems that simplify battery installations and lower costs, resulting in $1.1 billion in gross profit for the segment.

While acknowledging that it faces ongoing challenges from changing trade dynamics, tariffs, and fiscal policies, the company struck an upbeat tone regarding its AI endeavors and plans to further develop autonomous driving technology. For Wedbush’s top analyst, Daniel Ives, that is key to the bull case.

During the quarter, Tesla made steady progress on its AI strategy, with its fleet logging over 1.3 billion FSD miles and reaching a total of 6 billion miles to date, providing a “solid database to improve its FSD capabilities.” The company is also developing its AI5 chip in the US with partners Samsung and Taiwan Semiconductor, which should be able to deliver up to 40 times the performance of the current AI4 chip while being less complex, enabling faster AI improvements over time.

Tesla confirmed that Cybercab remains on track to enter volume production in 2Q26 at its Austin facility. The first production lines for the Optimus humanoid robot are being installed, with large-scale production of the Optimus V3 expected to begin in the first quarter of 2026, making 2026 a “critical year” for the company. Meanwhile, demand for Megapack and Powerwall products should stay strong into next year, driven by AI and data center needs, including from hyperscalers and utilities seeking to ease grid constraints and boost energy reliability.

“We continue to believe Tesla could reach a $2 trillion market cap in early 2026 in a bull case scenario and $3 trillion by the end of 2026 as the golden AI chapter takes hold at Tesla,” the 5-star analyst opined.

To this end, Ives assigns TSLA shares an Outperform (i.e., Buy) rating, backed by a Street-high $600 price target. The implication for investors? Upside of 38% from current levels. (To watch Ives’ track record, click here)

That’s a bull’s take, but many others on the Street aren’t quite as optimistic; the stock only claims a Hold (i.e., Neutral) consensus rating, based on a mix of 14 Buys, 13 Holds, and 10 Sells. Shares are expected to fall by ~14% over the coming year, considering the average price target stands at $374.85. (See TSLA stock forecast)

To find good ideas for AI stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.

Disclaimer & DisclosureReport an Issue

Q3 earnings season is in full swing, and Palantir Technologies PLTR +2.30% ▲ and BigBear.ai BBAI +3.98% ▲ are two of the most talked-about AI stocks as investors watch for their upcoming results. Both have gained attention in 2025 as demand for AI grows across business and government sectors. Palantir is a major player in data analytics and AI software, backed by new government deals and rising commercial demand. Meanwhile, BigBear.ai is expanding its presence in defense and security with tools like its VeriScan identity platform.

Elevate Your Investing Strategy:

• Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.

With both companies set to report their Q3 earnings soon, investors are watching closely to see which AI stock could deliver stronger gains. 

BigBear.ai Holdings (NYSE:BBAI) Stock

BigBear.ai stock has surged over 65% so far this year, driven by optimism about its growing role in AI and government analytics. Interestingly, on Friday (October 24), BBAI shares closed 4% higher after the company deployed its VeriScan biometric identity platform at Chicago O’Hare International Airport, highlighting its growing presence in national security and real-world AI applications.

However, weak financials remain a concern. During the Q2 earnings call, revenue fell to $32.5 million, and Wall Street analysts project limited upside, with a potential 17% downside from current levels.

Looking ahead, BBAI is scheduled to report its Q3 2025 earnings on November 10. Analysts expect a loss per share of $0.07, compared to a $0.05 loss in the same period last year, while revenue is expected to decline 23% year-over-year to $31.8 million.

Palantir Technologies (NASDAQ:PLTR) Stock 

Palantir stock has soared 140% year-to-date, driven by rising demand for its AI-powered platforms and strong financials. Recently, the company partnered with Lumen LUMN +3.85% ▲ to integrate its AI platforms with Lumen’s network, helping enterprises deploy AI more securely while expanding Palantir’s commercial reach. However, even with strong demand for its AI tools, Palantir’s high valuation remains a concern, and analysts are still cautious about the stock.

Looking ahead, Palantir is scheduled to report its Q3 2025 earnings on Monday, November 3. Wall Street expects Palantir to report earnings of $0.17 per share for Q3, up 70% from the year-ago quarter. Meanwhile, analysts project Q3 revenues at $1.09 billion, up about 50% year-over-year.

Ahead of the Q3 print, Cathie Wood‘s ARK fund has been trimming its stake in Palantir, indicating the fund is still re-evaluating its position as investors question the stock’s rich valuation. Just last week, Wood’s ARK Invest unloaded 23,768 shares of PLTR worth $4.3 million. 

Analysts Stay Cautious on Both AI Stocks Ahead of Q3 Results

Using TipRanks’ Stock Comparison Tool, we compared BigBear.ai and Palantir to see which AI stock analysts prefer. BigBear.ai holds a Moderate Buy rating with a price target of $5.83, implying about 17% downside from current levels. Meanwhile, Palantir stock is rated Hold with an average price target of $157.65, suggesting roughly 15% downside.

Despite strong year-to-date gains, with BBAI up 65% and PLTR up 140%, analysts remain cautious, signaling downside for both stocks.

Disclaimer & DisclosureReport an Issue