Markets and Business News Review

‘I believe myself to be an honorable person’: Do I have the right to ask my husband if I’ll inherit his house after he dies?

Quentin Fottrell — Sat, 22 Feb 2025 11:13:00 -0500

“He and his first wife have a son who just graduated from university.”

‘I’m a reluctant snowbird’: We’re in our 60s and own a $1 million home. Can we afford a $290K vacation home near our grandchildren?

Quentin Fottrell — Sat, 22 Feb 2025 11:13:00 -0500

“We have no debt and an investment portfolio of $3.3 million.”

Berkshire Posts Gain in Profits, Boosted by U.S. Treasury Holdings

Stacy Cowley — Sat, 22 Feb 2025 11:03:13 -0500

Warren Buffett’s conglomerate held $334 billion in cash at the end of 2024, helping to stabilize earnings in the face of declines at more than half of the nearly 200 businesses it operates.

Berkshire Hathaway’s cash pile hits record as Buffett dumps stocks

Sat, 22 Feb 2025 11:02:16 -0500

Billionaire investor trimmed the conglomerate’s equity portfolio and put money in Treasury bills

Elon Musk’s Net Worth Drops Almost $50 Billion.

Douglas A. McIntyre — Sat, 22 Feb 2025 10:31:44 -0500

From a wealth standpoint, Elon Musk has had a tough year. According to the Bloomberg Billionaire Index, his net worth has fallen by over $47 billion. The drop in Tesla’s (NASDAQ: TSLA) stock probably accounts for almost all the loss. That leaves his net worth at $385 billion.

Musk owns about 10% of Tesla. The company’s stock has dropped over 17% this year, bringing its market cap to $1.1 trillion. There are a few reasons the shares have declined. January sales have been soft in some parts of the world. They were off 59% from the same month a year ago in Germany. In France, the drop was 63%. In China, the number of Teslas sold dropped 11% year over year in January. China is the world’s largest EV market. Additionally, Tesla was hit by a recent 376,000-vehicle recall in the US due to a potential loss of steering power.

Musk’s xAI plans to raise $10 billion, putting its value at $78 billion. Musk owns over half of xAI. Musk has made an offer for larger OpenAI for $97.4, which OpenAI has rejected. OpenAI has been valued at two times the value of Musk’s offer. A group of investors (Valor Equity Partners, Baron Capital, Atreides Management, Vy Capital, and 8VC), including xAI, announced this possible takeover. If the two companies were combined, they would be an AI behemoth.

Musk also owns 42% of SpaceX, the world’s largest rocket company, which is estimated to be valued at $350 billion.

Even with Tesla’s stock dropping, there is reason to believe that Musk will remain the world’s richest person.

The post Elon Musk’s Net Worth Drops Almost $50 Billion. appeared first on 24/7 Wall St..

Warren Buffett prefers stocks over cash and other takeaways from his annual letter to Berkshire shareholders

William Watts — Sat, 22 Feb 2025 09:57:00 -0500

Warren Buffett, in his annual letter to shareholders, defends Berkshire’s cash pile but says the company will always prefer equities when they’re attractive.

Jim Cramer Likes Home Depot

Douglas A. McIntyre — Sat, 22 Feb 2025 09:48:36 -0500

Jim Cramer believes that Home Depot (NYSE: HD) could post less-than-stellar numbers when it releases them this week. However, he views the climate catastrophes that have wrecked homes from Florida to Los Angeles as possibly helping future earnings.

Home Depot’s shares have had a tough year, up only 6% compared to the S&P 500’s run-up of 21%. A weak housing market is one critical reason for the drop. In January, the sales of previously owned homes dropped 4.9% from December, according to the National Association of Realtors.

One reason for weak home sales is a rise in prices. In January, median listing prices hit $396,900, the highest of any January since the data was first collected. NAR Chief Economist Lawrence Yun commented, “Mortgage rates have refused to budge for several months despite multiple rounds of short-term interest rate cuts by the Federal Reserve. When combined with elevated home prices, housing affordability remains a major challenge.” The National Association of Home Builders recently reported that, on a home priced at $450,700, the difference in monthly payment between mortgages at 3% compared to 7% is $1,000 a month

Cramer’s theory about Home Depot’s future earnings seems well-founded. The AP reports, “The LA fires destroyed more than 16,000 homes, businesses, and other structures in upscale Pacific Palisades and working-class Altadena.” Hurricanes Helene and Milton destroyed or damaged an estimated 126,000 homes.

Not every home in LA or the areas hit by Helene and Milton will be rebuilt, but tens of thousands will. And that doesn’t include homes in other areas of the nations where disasters have hit.

The post Jim Cramer Likes Home Depot appeared first on 24/7 Wall St..

Officials Are Fired at Traffic Safety Agency Investigating Musk’s Company

Jack Ewing — Sat, 22 Feb 2025 09:44:53 -0500

The National Highway Traffic Safety Administration has raised questions about crashes involving Tesla’s self-driving technology.

The iPhone 16e has one big drawback

Quentin Fottrell — Sat, 22 Feb 2025 09:28:00 -0500

The new device has all the bells and whistles we have come to expect.

‘She acted as a mother to me growing up’: My stepmother remarried after my father died. How can I claim my inheritance?

Quentin Fottrell — Sat, 22 Feb 2025 09:27:00 -0500

“Her intention is to bequeath her properties and investments to her current new husband.”

Markets and Corporate America Are Unfazed by Washington Chaos, for Now

Talmon Joseph Smith — Sat, 22 Feb 2025 09:15:25 -0500

The federal budget debate has big implications for the economy. Businesses are betting that tax cuts will be extended and the math will work out.

Fox has a successful streaming brand in Tubi. So why is it launching another video app?

Weston Blasi — Sat, 22 Feb 2025 09:00:00 -0500

Tubi had more hours streamed in December than Paramount+, Peacock or Max, and it just helped deliver the Super Bowl’s biggest audience.

Trump’s IRS layoffs have some Americans asking: ‘Why bother’ filing taxes this year?

Andrew Keshner — Sat, 22 Feb 2025 09:00:00 -0500

Accountants say some clients are wondering if they should blow off their taxes amid IRS cutbacks.

Mark Cuban says if you can do this one thing, “you’ll never be unemployed”

Christy Bieber — Sat, 22 Feb 2025 08:21:38 -0500

Key Points

Mark Cuban says if you can sell, you won’t ever be unemployed.
The skills that make you a good salesperson can translate into success in other areas of your professional life.
You can develop some of these skills to enhance your career prospects.
Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here here.(Sponsor)

Mark Cuban is a billionaire, an investor, and a television personality. He also has some blunt advice for people about how to make sure they are always able to find a job. Specifically, Cuban said that “if you can sell, you’ll never be unemployed.”

Here’s why his words ring true, and why those who are good at sales will always be able to find work.

Why is being able to sell such an important skill?

Cuban’s advice about the importance of being able to sell makes good sense. That’s not because he expects everyone to get a job in sales though. Instead, the reason that he believes people who can sell can always find work is because those people can sell themselves.

A person who is talented at sales is going to have the ability to convince others that he can meet their needs. Top-notch salespeople are very persuasive, and they know how to connect and empathize with people. They can inspire others to take their positions on key issues, and convince other people to act in a way that benefits them.

These soft skills are going to help in finding work in any industry. An effective salesperson is going to be able to convince others to hire them. They are going to have a big network of people who will want to work with them because of their charisma, and all those people can help them land jobs and promotions. And, once they do start working, people who are good at sales will be able to inspire others to listen to their ideas and adopt their recommendations. This can help lead to advancement at work.

How do you become good at sales?

While Cuban’s words are great news for people who are good at sales, what about people who aren’t? Does this mean they are doomed to a mediocre career? Not necessarily. Most people are going to be able to learn at least some of the techniques that make great salespeople — and they can implement these techniques to help them excel in the workplace.

For example, if you want to become good at sales, you should focus on developing active listening skills. This means paying close attention to what others are saying, asking questions to understand their underlying motivations, and communicating through non-verbal feedback and verbal clues that you are engaged with what they are saying. Active listening makes people feel heard, which in turn makes them like you more and want to hire you or help advance your career.

Following up on leads and building close relationships is another essential skill of sales professionals and it is one that everyone can adopt. You should always be meeting people in your industry, making new connections, and staying in touch with as many people in your profession as possible. A large professional network can help you explore all of the opportunities available to you and can also enable you to reach out when you need assistance moving into a new position.

By working to adopt these techniques of sales professionals, you can maximize the chances of building a successful career. As Mark Cuban says, you’ll never be unemployed if you have them, so cultivating these talents can take your professional life to the next level.

The post Mark Cuban says if you can do this one thing, “you’ll never be unemployed” appeared first on 24/7 Wall St..

My friend is 70 and won’t retire because they are worried about a 4% withdrawal rate – are they right to worry?

Christy Bieber — Sat, 22 Feb 2025 08:15:31 -0500

Key Points

The 4% rule says you can withdraw 4% from retirement accounts without worrying about draining your account.
A Reddit user said his older friend won’t retire because he’s concerned about being able to follow the 4% rule.
Following generic rules often is not the best approach, and it would be smarter to get personalized advice from a financial expert.
Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here here.(Sponsor)

Retiring is a big life change with serious financial implications. Many people are reluctant to take the plunge because they are concerned that their money won’t last. This is the case for a Reddit user’s friend.

The original poster (OP) said that his friend is around 70. The OP is trying to convince the friend to retire, but the friend is very concerned that if he follows the 4% rule, he will run short of money later in life. So, can the friend trust the 4% rule or should he follow a different course?

What is the 4% rule?

First things first. The 4% rule is a rule of thumb that is designed to make your money last for the whole of your retirement. If you follow the 4% rule, you will withdraw 4% of your account balance in the first year. Then, every year, you can withdraw a little bit more to account for inflation. The premise is that if you stick with this safe withdrawal rate, you have around a 90% chance of your money lasting for at least 30 years.

Unfortunately, the OP’s friend has two concerns about the 4% rule. The first worry he has is whether he will be able to stick with withdrawing 4% or whether his financial needs are going to be greater. If he does need to take out more than 4% to cover his costs, he is really worried about running out of money.

The OP’s friend is also worried that even if he does follow the 4% rule, his money could still run short since his parents lived into their 90s so he most likely will really need his funds to last for a long time.

How can you make sure your money lasts in retirement?

The OP’s friend is right to worry about the 4% rule. Experts recently revised the amount you can safely withdraw, with the new estimate now coming in at 3.7%. Since people are living longer and there are less optimistic projections for returns going forward, being more conservative is going to be important — especially for someone like the OP’s friend who most likely has a pretty long life expectancy.

It’s also concerning that the OP’s friend isn’t confident that he can even stick to the 4% safe withdrawal rate. If there’s a risk that you will need to take more than 4% out of your retirement accounts to meet your needs, that could be a red flag that suggests you don’t have enough saved. You don’t want to jeopardize your security and wind up broke really late in life, so you should typically wait to retire until you are 100% confident that your nest egg is going to give you enough to live on comfortably at a safe withdrawal rate. In fact, it’s best to have a cushion rather than be cutting it close.

The OP’s friend should strongly consider talking with a financial advisor. A professional can shed light on whether you are truly ready to retire or not and can help you come up with a personalized strategy for withdrawing funds that doesn’t just rely on blanket rules of thumb. Since the OP is close to 70 already, he shouldn’t hesitate to get help sooner rather than later so he can make a plan to get his retirement underway.

The post My friend is 70 and won’t retire because they are worried about a 4% withdrawal rate – are they right to worry? appeared first on 24/7 Wall St..

‘I’ve opened a hornet’s nest’: My mother-in-law lists my husband as beneficiary on her $1 million IRA. But her will says otherwise. Which wins?

Quentin Fottrell — Sat, 22 Feb 2025 08:15:00 -0500

“All of this is causing a lot of turmoil in the family. Does her will trump the IRA beneficiary?”

We retired and wanted to downsize to a smaller condo but prices have gone crazy – are we stuck in our house?

Christy Bieber — Sat, 22 Feb 2025 08:11:58 -0500

Key Points

With real estate prices so high, a Reddit user feels trapped in his home.
It’s important to consider total housing costs when deciding whether selling makes sense.
Your retirement budget can also impact the decisions you make about where to live.
Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here here.(Sponsor)

A retired Reddit user is trying to decide where to live in his later years. His spouse is retiring next year. When she does, they planned to sell their primary home, travel for a while, and then buy a condo with a stable association fee and maintenance schedule. Unfortunately, when the original poster (OP) started to research condos available in their area, they discovered that real estate prices had gone insane. So, despite selling a larger home, they’d likely walk away with around $800K and would have to pay around $1.2 million for a condo in the area where they want to live.

Given the high costs of condos now combined with the fact that mortgage rates remain high, the OP feels stuck in his home and believes that it will never make financial sense to try to trade out of their current property. The OP is wondering if he and his wife are stuck for life, and is trying to decide what to do next.

Look at the big picture in terms of cost

The first thing that the Reddit user needs to do is to consider the big picture in terms of total costs. Obviously, it would not be ideal to have to spend an extra $400K to get the house that they want to live in during retirement. However, they also need to consider ongoing costs of ownership as well.

Would the condo come with lower property taxes, for example? Would their maintenance and utility costs be smaller? Could they get rid of one of their cars and downsize to a one-car household if they are moving to a more urban area?

The monthly cost of a mortgage is just one of many expenses and the OP may find that once they take all of these issues into account, the move actually does make financial sense in the end — especially if the couple is happier in their new place or if they are better able to age in place so they don’t have to move as they get older.

Make sure housing costs are affordable

Whatever the OP decides, he also needs to make sure that his housing costs are going to be affordable over the long term. Whether he stays in his large current house or takes out a mortgage to buy a new condo, he can’t commit to a housing payment that he won’t be able to cover with his retirement income once his paychecks stop coming.

Ultimately, a lot depends on how much the Redditor actually has saved. If he has a hefty retirement nest egg and more than enough income coming from Social Security and savings, then he can buy the condo if he wants to do it, even if it increases his housing costs a little bit. Retirement is a time to enjoy your life and as long as it doesn’t put you over budget and at risk of running out of money, you deserve to live where you want in your later years.

He should look carefully at his budget, decide on a safe withdrawal rate, and make sure that his housing situation is financially sustainable. Once he has decided how much income he can devote to this expense, he can find a housing situation that makes sense given his lifestyle preferences and available funds. A financial advisor can also offer invaluable help in deciding how much to spend and whether downsizing to a condo is a good choice in the long run.

The post We retired and wanted to downsize to a smaller condo but prices have gone crazy – are we stuck in our house? appeared first on 24/7 Wall St..

Comparing Elon Musk and Jack Welch as Influential Cost-Cutters

William D. Cohan — Sat, 22 Feb 2025 08:02:26 -0500

Elon Musk’s hyperfocus on the bottom line has made him influential in Washington and Silicon Valley. How does that compare with the last famous cost-cutter, Jack Welch?

US traders snap up aluminium ahead of Trump tariffs

Sat, 22 Feb 2025 08:00:51 -0500

Imports hit highest level since mid-2022 as premium over London price surges

China taps tech talent to boost AI data centre boom

Sat, 22 Feb 2025 08:00:51 -0500

Beijing is pooling resources from the private and state sectors to accelerate adoption of the fast-developing technology

Top shale boss says US oil companies will not flock back to Russia

Sat, 22 Feb 2025 08:00:51 -0500

Harold Hamm warns executives will be wary of any peace deal between Trump and Putin

U.S. stocks are near record highs. Why are investors so worried?

Joseph Adinolfi — Sat, 22 Feb 2025 07:00:00 -0500

Sentiment gauges have soured — but the S&P 500 was at record highs just a few days ago. What’s going on?

In 2025, corporate eccentricity is a feature, not a bug

Sat, 22 Feb 2025 06:30:51 -0500

In some cases, oddball ideas can turn into corporate empires

I’ll have $4.5 million saved for retirement when I turn 75. Should I start my IRA conversions now?

Alessandra Malito — Sat, 22 Feb 2025 06:25:00 -0500

“My RMD would be $180,000 and the taxes would be high.”

L.A. fire victims face an impossible math problem: Sell their burned-down homes at a loss, or rebuild for a fortune?

Aarthi Swaminathan — Sat, 22 Feb 2025 06:00:00 -0500

Homeowners have been warned not to take lowball offers — but what is a reasonable price for a fire-damaged lot in one of the country’s most expensive real-estate markets?

Big Day for Crypto Goes South After Bybit Hack

David Yaffe-Bellany — Sat, 22 Feb 2025 05:02:06 -0500

Hours after Coinbase said the S.E.C. was dropping a lawsuit against it, another major cryptocurrency exchange reported a potentially record-setting theft.

Can a Year-End Bonus Be Docked If You Took Maternity Leave?

Anna Holmes — Sat, 22 Feb 2025 05:01:57 -0500

Is it fair for management to dock someone’s annual incentive pay because of a maternity or medical leave?

Wall Street Is Getting Antsy With Trump

Rob Copeland — Sat, 22 Feb 2025 05:00:46 -0500

The contrasting reactions between the overflow and V.I.P. areas at a Trump event encapsulated the finance world’s worries about the new administration’s first month.

Investment trusts: prepare for more activist attacks

Sat, 22 Feb 2025 00:00:51 -0500

Saba Capital suffers seventh takeover defeat, but heat will remain on the industry, analysts warn

How Washington plans to defend the dollar

Sat, 22 Feb 2025 00:00:51 -0500

Trade tariffs grab headlines but the less-visible fight around money matters deeply to the president

Big Tech and the genesis of AI’s new world order

Sat, 22 Feb 2025 00:00:51 -0500

Should Silicon Valley serve the military? What will tech wars mean? And will AI’s inhuman speed outpace regulators? Three books peer into a fast-evolving future

Coffee Prices Are Soaring, but Growers Aren’t Celebrating

Peter S. Goodman and Alejandro Cegarra — Sat, 22 Feb 2025 00:00:33 -0500

Climate change is behind the windfall gains, and growers are worried about whether they can adapt.

Is Xi’s Sudden Embrace of Business for Real? China Is Left Guessing.

Li Yuan — Sat, 22 Feb 2025 00:00:07 -0500

The uncertain reaction to Xi Jinping’s display of warmth made sense: Executives are eager for a reset after years in the cold but ever wary of meddling.

Beware of These Common Pitfalls When Calculating Your Annual RMD

Dana George — Fri, 21 Feb 2025 21:55:18 -0500

Required Minimum Distribution (RMD) refers to the minimum amount you must withdraw from your retirement accounts once you reach a certain age. This IRS-mandated rule requires you to withdraw your RMD amount at least once a year. If you have a traditional IRA, 401(k), 403(b), or other tax-deferred retirement account, RMDs are required.

Key Points

Failure to make your full RMD withdrawal can result in a 25% penalty tax.
Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you answer that today. Each advisor has been carefully vetted, and must act in your best interests. Don’t waste another minute; get started by clicking here here.(Sponsor)
Missing a withdrawal due date is an easy way to be hit with a bigger tax bill.
Making a qualified charitable distribution can save tax dollars for retirees who have more money than they need.

Pitfalls to avoid

There’s much to learn about RMDs, but they’re pretty straightforward once you understand how they work. That doesn’t mean there aren’t potential pitfalls, though. Here are five of the most common:

1) Failure to take your full RMD amount

Let’s say you take a year-long cruise or are hospitalized for a portion of the year and forget to take your full RMD. Failure to make the full withdrawal can result in an excise tax of 25% on the amount you didn’t take out. If you correct the issue within two years, the tax may be knocked down to 10%. Still, it’s an expensive mistake to make.

2) Calculating the wrong amount

Failure to withdraw the full amount may not be due to being distracted. It may just be a matter of incorrectly calculating how much you’re supposed to withdraw. Let’s say your calculations are off by $5,000. That means the $5,000 you let ride in your retirement account is subject to a 25% tax.

Fortunately, several online tools make the RMD calculation easy by doing the math for you. You may want to check out:

The IRS website: The IRS provides plenty of free guidance on calculating your RMD, including life expectancy tables.
Financial planning software: If you self-manage your retirement plan, the software you use may include RMD calculations.
Financial institution calculators: Retirement account providers, brokerages, and banks often offer RMD calculators. All you need to do is enter your age and account balance to calculate your RMD.

3) Missing a deadline

Your first required minimum distribution is no later than April 1, following the year you turn 73. In subsequent years, you must take your RMD by December 31. Missing the deadline can result in paying far more than you would otherwise pay in taxes. The good news is this is one of the easiest pitfalls to avoid. Mark your calendar so you never forget when RMDs are due, or better yet, set up automatic withdrawals so you don’t have to worry about missing a deadline.

4) Losing track of accounts

You’re required to include all retirement accounts when calculating your annual RMD. It’s possible to become busy in retirement and forget to withdraw from older or smaller retirement plans.

5) Failure to contribute to charity through direct distribution

If you’re fortunate enough to have more retirement income than you need, you may consider donating a portion of the funds to your favorite charity. Properly executed, qualified charitable distributions (QCDs) aren’t factored into your adjusted gross income for the year, which lowers your tax bill. Here’s the catch: QCDs must be made by direct distribution. If you take an RMD and then write a check to a charity, you will be taxed on the entire amount you withdrew. Instead, the money must be transferred directly from your IRA account to a qualified charity, bypassing you entirely.

If you don’t have an IRA, you can transfer money from a 401(k) or 403(b) to an IRA without being taxed or penalized. The trick is to remember that the transfer of funds must be completed by December 31 of the prior year.

The magic age

According to the IRS, RMD rules require you to withdraw from SIMPLE and SEP IRAs once you reach age 72. If you reach 72 in 2023 or later, the age is boosted to 73. This rule holds true even if you’re still employed.

If you own a Roth IRA, you’re not required to take withdrawals during your lifetime. However, after your death, beneficiaries of your Roth IRA are subject to RMD rules.

Paying Uncle Sam

Generally, RMDs are taxed as ordinary income for the tax year the withdrawal is made. The need to pay taxes helps explain why RMDs exist. One of the ways the government encourages us to save for retirement is by allowing us to make tax-free contributions toward most types of retirement plans while working. However, Uncle Sam eventually wants to be paid. RMDs are the government’s way of collecting taxes on money earned tax-free years earlier.

While dealing with another set of rules and deadlines may sometimes feel like a hassle, RMDs are a great way to supplement your retirement. The last thing you want to do is waste any of that money by having to pay a penalty.

The post Beware of These Common Pitfalls When Calculating Your Annual RMD appeared first on 24/7 Wall St..

Patsy Grimaldi, Whose Name Became Synonymous With Pizza, Dies at 93

Pete Wells — Fri, 21 Feb 2025 20:59:57 -0500

His coal-oven pizzeria in the shadow of the Brooklyn Bridge has drawn patrons from New York City and beyond.

My husband and I have been married for 18 years. We share a son — and my husband has a daughter. Why should they get an equal inheritance?

Quentin Fottrell — Fri, 21 Feb 2025 20:52:00 -0500

“This year she got married, and I was completely left out of any planning, bridal-shower and wedding activities.”

‘She’s bleeding her retirement dry’: My friend earns $9 an hour, but wastes money on vacations and massages. What can I do?

Quentin Fottrell — Fri, 21 Feb 2025 20:43:00 -0500

‘She blew through her inheritance fast and paid for the down payment on her car with credit cards’

As banks retreat from DEI, Citi is making these changes to its diversity and hiring practices

Bill Peters — Fri, 21 Feb 2025 19:36:00 -0500

Citigroup says it will no longer require “diverse slates of candidates and diverse panels of interviewers.”

Trump considers tariffs to counter digital services taxes on Big Tech

Fri, 21 Feb 2025 19:25:49 -0500

President orders probes into levies imposed by EU, UK and Turkey on US companies

Dow wipes out its gains since Trump’s inauguration as ‘stagflation’ fears return

William Watts — Fri, 21 Feb 2025 18:23:00 -0500

U.S. stocks ended the week on an ugly note Friday, posting their worst day of 2025 — and a run of soft economic data was getting much of the blame.

Veterinarian and 13 Horse Trainers Violated Drug Rules, U.S. Regulator Says

Joe Drape — Fri, 21 Feb 2025 18:20:04 -0500

Thirty percent of the horses never raced again and seven died, the Horseracing Integrity and Safety Authority said.

A.P. Sues Trump Officials Over White House Ban

Katie Robertson — Fri, 21 Feb 2025 18:00:57 -0500

The wire service sued three of them for denying its reporters access to press events. The White House has objected to The A.P.’s references to the Gulf of Mexico in articles.

£67bn of UK investors’ money is in underperforming funds

Fri, 21 Feb 2025 18:00:50 -0500

Wealth floundering in so-called ‘dog’ funds rises 26 per cent in six months, as investor Nick Train’s UK Equity product named among them

5 Key Takeaways Rivian Investors Shouldn’t Ignore

Joel South — Fri, 21 Feb 2025 17:37:40 -0500

Rivian (NASDAQ: RIVN) delivered its Q4 2024 earnings report on yesterday, and while the electric vehicle (EV) market faces headwinds, the company offered plenty of reasons for optimism. From finally hitting positive gross profits to its hyped midsize SUV launch, here are five positives from Rivian that investors should be following closely on the road ahead.

Key Points

Rivian hits positive gross profit, cutting costs by $31,000 per vehicle.
R2 SUV debuts 2026 at $45,000, targeting triple the market size.
$7.7 billion cash plus $10.1 billion potential funds R2 ramp-up.
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1. Finally turning the corner on positive growth profit

Rivian hit a major milestone that has been hinted at for numerous quarterly earnings announcing leading up to this quarter- finally turning a profit.

The automotive segment posted $110 million (7% margin), while software and services added $60 million (28% margin). This was fueled by a $31,000 reduction in cost of goods sold (COGS) per vehicle—from $130,000 in Q4 2023 to $99,000—alongside higher average selling prices (ASPs) of $86,000, thanks to strong Tri-Motor R1 sales.

CEO RJ Scaringe called it “a really important milestone,” which validates years of cost-cutting and operational discipline. For investors, this shift slashes cash burn and signals Rivian is nearing financial sustainability—a huge win for a young EV maker in a capital-intensive industry.

2. R2 set for its 2026 debut

The midsize SUV with a much discounted starting price of $45,000 was a highlight on the company earnings call, with a planned launch expected in the first half of 2026. Targeting a broader market than the premium R1 line, R2 boasts a cost structure roughly 50% lower than R1’s.

This move compares favorably to Tesla’s (NASDAQ: TSLA) Model Y launch in March 2020 at $39,000. CEO RJ Scaringe’s excitement was palpable: “We couldn’t be more excited about this program.” If executed well, R2 could triple Rivian’s addressable market, setting the stage for explosive volume growth and potentially sending the stock soaring post-2026.

3. Hoarding much needed cash

Rivian ended 2024 with $7.7 billion in cash, up from $6.7 billion, helped by $1.3 billion from its Volkswagen joint venture —part of a $5.8 billion deal. Add in a pending $6.6 billion Department of Energy (DOE) loan and remaining JV funds, and Rivian could unlock another $10.1 billion.

CFO Claire McDonough noted this capital “is expected to fund Rivian’s operations through the ramp of R2” This financial runway reduces dilution fears and supports $1.6–$1.7 billion in 2025 capex for R2 and a future Georgia plant, giving investors confidence in Rivian’s ability to scale without stumbling. The cash position again highlights the importance of the R2 launch and consumer appetite for the EV.

4. Software and Self-Driving

Rivian’s Autonomy Platform (featuring 55 megapixels of cameras, five radars, and 10x the compute power of Gen 1) nearing key milestones. A hands-off highway feature launches in weeks, with an eyes-off version slated for 2026, leveraging AI for rapid improvement.

Meanwhile, the Volkswagen JV drove $214 million in Q4 software and services revenue, with $2 billion more expected over four years, targeting over $1 billion in 2025 at 30% margins. CEO Scaringe emphasized, “We believe that it will create economic value for us as a business.” These high-margin segments diversify Rivian’s revenue, offering a lucrative edge that could juice profitability and stock valuation as adoption grows.

5. 2025 Forecast

Analysts and stockholders did not look favorably on 2025 forecast of 46,000 to 51,000 deliveries, which would show negative growth or best case, flat year-over-year growth rates in sales. 1Q 2025 numbers reflect external setbacks like the LA fires, but the focus should be on adjusted EDITDA losses which are expected to shrink to $1.7 to $1.9 billion from $2.69 billion. The focus on efficiency gains in 2025 should lead to a stellar 2026, making this coming year a speed bump rather than a massive calamity.

For those betting on Rivian’s electric future, these five bright spots light the way. But challenges remain and if Rivian doesn’t execute in any of the areas above in the coming year, it might be time to jump ship before 2026.

The post 5 Key Takeaways Rivian Investors Shouldn’t Ignore appeared first on 24/7 Wall St..

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