Markets and Business News Review

Scientists develop brain implant capable of decoding inner speech

Thu, 14 Aug 2025 11:00:02 -0400

Stanford researchers use electrodes and artificial intelligence to help people whose paralysis prevents physical speech

Instant Coffee Contaminated with Glass, Plus Unprecedented Recalls That Cost Companies Billions

Jessica Lynn — Thu, 14 Aug 2025 11:00:02 -0400

Dollar General has issued a nationwide recall of its Clover Valley 8-ounce instant coffee after a customer reported finding glass fragments in the product, according to the FDA. Clover Valley is working alongside the FDA to determine the source of the contamination. The recall excludes Hawaii and Alaska and only applies to specific lot. The affected products include numbers L-5163, L-5164, and L-5165 with best-by dates of December 13–14, 2026. They also include UPC 876941004069, which is printed near the bottle’s neck. This recall is considered serious because ingesting glass can lead to injuries to the mouth, throat, or intestines. Fortunately, no injuries have been reported.

Product recalls happen after a certain product is found to be defective, contaminated, or unsafe in some ways. While recalls happen, companies should act swiftly to protect their consumers — and their brands. Looking at the history of product recalls, some stand out more than others — and not for good reasons. Here, 24/7 Wall St. put together a list of some of the biggest recalls of all time. To do so, we used data from Reddit, SI Live, and Thomas Net. This list is ordered in descending order from smallest to largest recalls.

This post was updated on August 14, 2025 to include Clover Valley’s recent recall.

Why Is This Important?

Recalls can be dangerous to consumers and businesses if not handled properly.

As one might suspect, anytime a recall takes place, it’s as much of a potential stock hit as a public relations one. In the case of many recalls on this list, the company’s valuations fell significantly, and in at least one case, it left the company bankrupt and out of business. For these reasons, this topic aligns perfectly with our desire to provide you with information on financial health — and to let you know what companies you might want to avoid.

12. Keurig Coffee Machines

Keurig Coffee machines are a surprising addition to this list.

Recall size: 7.2 million

Keurig received some credit for voluntarily recalling over 7 million of its Mini Plus single-serve units. The affected models, K10 and B31, were manufactured between 2009 and 2014. At the time of the recall, Keurig issued a notice asking customers not to use and to stay away from its machines until a fix had been made available. The recall centered around the machines errantly spraying burning hot liquid that could potentially land on someone’s skin, and had received at least 200 reports of this incident taking place.

11. Toyota and Lexus

Toyota and Lexus played a major role in one of the largest recalls ever.

Recall size: 8.1 million

In 2010, Toyota was at the center of a massive recall affecting over 8.1 million Toyota and Lexus models. After receiving multiple reports of floor mats sticking to acceleration pedals, the U.S. government forced Toyota to recall its vehicles. Sadly, this was only after learning that at least five deaths could be attributed to this issue. The resulting recall would cost Toyota at least $2 billion in lost value and another $1.2 billion to settle a lawsuit with the Justice Department.

*Editor’s note: A previous version of this story incorrectly stated 89 deaths instead of 5.

10. Zen Magnets

Magnetic ball playsets were recalled after kids swallowed them.

Recall size: 10 million

In August 2021, the Zen Magnets and Neoballs Magnets playsets were recalled after complaints started to surface about children swallowing the magnetic balls. Consumers were advised to stop playing with the units immediately after at least two children required surgery to remove the magnets, which resulted in part of their intestines being removed as well. There was also a report of a 19-month-old girl who passed away as a result of swallowing one of the magnets that were part of the Zen sets.

9. Volkswagen “Dieselgate”

The Volkswagen Dieselgate recall was a huge black eye for the brand.

Recall size: 11 million

One of the most expensive recalls in history, “Dieselgate” (as it’s commonly known) happened when Volkswagen was accused of tricking U.S. vehicle emission standards. With more than 11 million vehicles recalled, Volkswagen had to spend around $18.3 billion to buy back vehicles from owners who could no longer drive a vehicle that would not pass vehicle emission standards, which it had already cheated once before. The Environmental Protection Agency made its determination around Volkswagen’s trickery around September 2015 and forced the recall.

8. Schneider Electric

Schneider Electric was forced to issue a blanket recall for surge protectors.

Recall size: 15 million

Electric giant Schneider Electric had to recall surge protectors that would overheat or melt. Starting in October 2013, the recall returned to models produced as far back as 2003, or one full decade before the recall was uninitiated. While Schneider Electric indicates the number of incidents was rare and only occurred in 0.01% of all surge protectors, it doesn’t change the reality that over 700 complaints were received by the Consumer Protection Agency.

7. Ikea Dressers

Ikea had to recall millions of dressers that posed a risk to small children.

Recall size: 17 million

One of the most shocking recalls of all time is centered around furniture giant Ikea. While the issue was first identified in June 2016, it wasn’t until after November 2017 that the recall began in earnest. The focal point surrounded the popular Malm dresser lineup, which had tipped over and injured at least 144 children and killed at least eight children. Ikea reportedly received at least 300 complaints and settled lawsuits for up to $46 million for the affected families. Still, Ikea is accused of knowing about the problem and failing to notify customers.

6. Firestone Tires

The recall of Firestone tires alongside Ford was a major gamble for both brands.

Recall size: 23 million

In 2000, Firestone Tire and Rubber Company found itself in a situation where it had to work with Ford to recall over 23 million tires in over 19 million vehicles. Faulty tires were said to be responsible for over 271 deaths and 800 injuries. The resulting impact on Bridgestone, the parent company of Firestone, would halve the company’s market value. At the same time, Ford fired many executives who publicly accused both companies of blame.

5. General Motors Ignition Switches

While GM recovered, there is no doubt that 30.4 million recalls were tough on the bottom line.

Recall size: 30.4 million

In one of the largest recalls ever from the automobile industry, General Motors had to recall 30.4 million cars worldwide after learning that 800,000 of its vehicles suffered from faulty ignition switches. This faulty switch could result in the engine shutting off without warning, even while driving. As the weeks passed, GM had to bring the recall to more than 30.4 million cars, extending the recall for months. With over 124 deaths associated with the issue, the recall couldn’t have happened fast enough.

4. Tylenol

Tylenol is one of the most popular medicines on the market.

Recall size: 31 million

Johnson & Johnson recalled Tylenol in 1982. At the time, it was one of the most shocking and prominent recalls in U.S. history. While the company’s recall of 31 million bottles of Tylenol sent consumers into a frenzy, it remains a textbook study on the ideal way to handle a product recall and come out stronger. Even though it cost the company over $100 million, the company’s proactive steps no doubt saved the company and the Tylenol brand from failure.

3. McDonald’s Step-iT Wristband

Recalling 33 million wristbands must have been tough for McDonald’s balance sheet.

Recall size: 33 million

In August 2016, McDonald’s issued a massive recall of its Step-iT activity wristband, which was part of a Happy Meal offer. Following more than 70 reports of burning and seven reports of blisters, the company immediately stopped distributing the wristbands. McDonald’s indicated that it had received “limited reports” of skin irritations that “may be associated with wearing the band,” but also shared that not many wristbands had actually been introduced to customers. McDonald’s hoped introducing the wristband would change the perception of Happy Meals as unhealthy — but the unfortunate recalls did little to up its reputation.

2. Kidde Fire Extinguisher

A defective fire extinguisher can be the difference between life and death.

Recall size: 37.8 million

After a series of recalls starting with smoke alarms in September 2014, Kidde’s recall troubles went from bad to worse in November 2017. The U.S. Consumer Product Safety Commission issued a recall notice for 134 models of Kidde fire extinguishers after discovering they could fail to discharge correctly when used. The recall involved over 37.8 million fire extinguishers, and it was so deep that it went back to products Kidde made in the 1970s. At least one death has been attributed to the failure.

1. Takata Airbags

The biggest recall of all time was for Takata airbags.

Recall size: 67 million

Takata’s airbag recall was both the largest recall of all time, and the most expensive. Almost all of the company’s airbags from 2002 to 2015 were recalled. The recall was so large that it spread across 20 carmakers, including (but not limited to) Honda, Toyota, Subaru, Mitsubishi, Nissan, and Mazda. In total, this recall cost Takata $24 billion. The company went bankrupt as a result in January 2024 and has since closed up shop.

The post Instant Coffee Contaminated with Glass, Plus Unprecedented Recalls That Cost Companies Billions appeared first on 24/7 Wall St..

The Auctioneer and the Treasury Chief: How Billy Long Fell Short at the I.R.S.

Andrew Duehren and Maggie Haberman — Thu, 14 Aug 2025 10:53:29 -0400

Treasury Secretary Scott Bessent sought total control over the I.R.S., an agency where Mr. Long, the new commissioner, had started to put his own mark on the job.

2 High-Yield REIT Picks to Capitalize on Imminent Fed Rate Cuts

Rich Duprey — Thu, 14 Aug 2025 10:52:45 -0400

Key Points in This Article:

July’s CPI signaled cooling inflation, boosting expectations for Fed rate cuts in September, but a bigger-than-expected increase in the PPI tempered enthusiasm slightly.
Despite the conflicting data, CME FedWatch still shows strong rate cut probability.
The two high-yield REITs below could see enhanced growth from lower interest rates, making them timely buys.
Sit back and let dividends do the heavy lifting for a simple, steady path to serious wealth creation over time. Grab a free copy of “2 Legendary High-Yield Dividend Stocks” now.

The latest Consumer Price Index (CPI) report has sparked optimism, revealing consumer prices rose 0.2% in July, meaning the index held steady from June at 2.7%. This was milder than anticipated, but core CPI inflation rose more — 0.3% — bringing the core rate up to 3.1%.

Still, this has fueled momentum for anticipated Federal Reserve interest rate cuts in September, with investors increasingly confident in a more accommodative monetary policy. However, the Producer Price Index (PPI), which measures wholesale prices, released this morning, showed a surprising 0.9% monthly increase, far more than the expected 0.2%. This suggests businesses are absorbing higher costs rather than passing them to consumers.

While this could signal future price pressures, the CME Group’s FedWatch tool indicates only a slight dip in rate cut expectations 92.5% versus 94.3% yesterday), with a 50-basis-point cut still favored at a 65% probability.

Lower interest rates typically benefit real estate investment trusts (REITs), which struggle under high borrowing costs due to their debt-heavy structures. As rate cuts loom, two REITs stand out as prime investment opportunities today.

VICI Properties (VICI)

VICI Properties (NYSE:VICI) was formed in 2017 as a spin-off from Caesars Entertainment (NASDAQ:CZR) and is a leading experiential REIT specializing in casino and entertainment properties.

Its portfolio includes iconic Las Vegas assets like Caesars Palace, MGM Grand, and Venetian Resort, alongside regional gaming venues. VICI’s triple-net lease structure, where tenants cover taxes, insurance, and maintenance, ensures stable cash flows, shielding it from economic volatility.

Over the past three years, VICI’s total return is approximately 9.3%, driven by consistent dividend growth and strategic acquisitions, such as the 2023 purchase of 38 Bowlero bowling centers for $432 million.

Its annual dividend is currently $1.73 per share, yielding 5.3%, with an 8% annualized dividend growth rate over the past five years. Year-to-date, VICI’s stock is up over 12%, supported by robust rental income.

VICI’s focus on the resilient gaming sector and long-term leases has helped it navigate high-rate environments. Anticipated rate cuts could lower borrowing costs, enabling further acquisitions, dividend hikes, and stock price appreciation, positioning VICI stock as a compelling buy for investors seeking reliable income and capital gains.

Realty Income (O)

Realty Income (NYSE:O) has operated since 1969 and is a retail REIT known as “The Monthly Dividend Company” because it championed monthly dividend payments that so many other REITs now offer.

It owns over 15,000 properties across retail, industrial, and gaming sectors. Its tenants, including Walgreens (NASDAQ:WBA), Dollar General (NYSE:DG), and 7-Eleven, operate under long-term, triple-net leases, ensuring predictable income.

Since August 2022, Realty Income’s stock has lost about 9% on a total return basis (the stock price is down over 22%) as rising interest rates have increased borrowing costs and pressured margins. However, year-to-date, its stock has gained 8%, driven by resilient rental income and a 5.5% dividend yield. Realty Income’s annual dividend of $3.19 per share, paid monthly, has increased for 30 consecutive years, with a 3.9% annualized growth rate over the past five years.

Its scale and tenant diversity have sustained performance despite high rates. With 661 consecutive monthly dividends paid, Realty Income is poised for stronger growth as anticipated rate cuts reduce debt servicing costs, freeing capital for acquisitions and further dividend increases. This makes it an attractive investment for income-focused investors ahead of the Fed’s potential policy shift.

Key Takeaways

VICI Properties and Realty Income are compelling REIT investments ahead of any potential Federal Reserve rate cut in September. VICI, with its casino-focused portfolio, offers a safe and growing dividend and solid stock price appreciation, poised for further gains as lower rates reduce borrowing costs. Realty Income, a retail REIT, provides olid track record of dividend growth based on top-notch tenants. Both benefit from stable triple-net leases, ensuring resilient cash flows.

Anticipated interest rate cuts could enhance their acquisition potential and stock appreciation, making them attractive buys for income and growth investors.

The post 2 High-Yield REIT Picks to Capitalize on Imminent Fed Rate Cuts appeared first on 24/7 Wall St..

Taylor Swift Found a New Way to Control Her Narrative: Podcasts

Jessica Testa — Thu, 14 Aug 2025 10:38:29 -0400

For stars promoting their projects, podcasts have become an appealing alternative to late-night TV and glossy magazines.

Big Tech’s A.I. Boom Is Reordering the U.S. Power Grid

Ivan Penn and Karen Weise — Thu, 14 Aug 2025 10:04:35 -0400

Electricity rates for individuals and small businesses could rise sharply as Amazon, Google, Microsoft and other technology companies build data centers and expand into the energy business.

Cohere raises $500mn as it challenges OpenAI for business clients

Thu, 14 Aug 2025 10:00:02 -0400

Canadian group recruits ex-Uber and Meta executives and boosts valuation to $6.8bn

Leonard Tow, Cable TV Magnate and a Major Philanthropist, Dies at 97

Trip Gabriel — Thu, 14 Aug 2025 09:56:08 -0400

Once on the Forbes 400 list of richest Americans, he donated substantially to the arts, higher education, hospitals and criminal justice reform.

Tesla (NASDAQ: TSLA) Stock Price Prediction and Forecast 2025-2030 (Aug 14)

Joel South — Thu, 14 Aug 2025 09:40:15 -0400

Shares of Tesla Inc. (NASDAQ: TSLA) are trading for 5.3% more than a week ago as the EV ramps up for its robotaxi launch. The share price is still 4.7% lower than six months ago, underperforming the broader markets in that time.

24/7 Wall St. Key Points:

Tesla Inc. (NASDAQ: TSLA) stock has been a market darling, with a meteoric rise since it came public in 2010.
Investors have had much to worry about in 2025, and the roller-coaster share price shows it.
Due to Tesla’s innovation and diversification, 24/7 Wall St. sees strong upside potential for the stock each year through the end of the decade.
Check out 24/7 Wall St.’s “The Next Nvidia” report for three top picks poised to take off from the next breakthroughs in AI.

However, Tesla stock has gained 63.3% over the past year, so plenty of investors are still drawn to the EV market leader, which has experienced a meteoric rise that has resulted in a 21,260% gain since the company’s initial public offering on June 29, 2010. It debuted at $17 per share, or roughly $1 per share when adjusted for stock splits.

Regardless, investors are more concerned with the stock’s future performance over the next one, five, and 10 years. While most Wall Street analysts will calculate 12-month forward projections, it is clear that nobody has a consistent crystal ball, and plenty of unforeseen circumstances can render even near-term projections irrelevant. 24/7 Wall St. aims to present some farther-looking insights based on Tesla’s own numbers, along with business and market development information that may be of help to our readers’ own research.

Tesla’s Recent Success

Tesla has managed to thrive, boosting earnings and revenue even in high-interest-rate environments. Tesla’s Model S was the best-selling plug-in electric car in both 2015 and 2016. The mass-market Model 3 sedan followed, becoming the best-selling electric car from 2018 to 2021. The Model Y, a mass-market SUV version of the Model 3, debuted in 2019, with deliveries beginning in 2020. Since then, Tesla stock has experienced incredible growth.

Along with Tesla’s energy storage business and its charging station network, the company saw its revenues grow.

Fiscal Year	Price	Revenues	Net Income
2015	$16.00	$4.046 B	−$888.7 M
2016	$14.25	$7.000 B	−$674.9 M
2017	$21.60	$11.759 B	−$1.962 B
2018	$21.18	$21.461 B	−$976 M
2019	$29.53	$24.578 B	−$862 M
2020	$235.23	$31.536 B	$721 M
2021	$352.26	$53.823 B	$5.519 B
2022	$123.18	$81.462 B	$12.556 B
2023	$248.48	$96.773 B	$14.997 B
2024	$403.84	$97.690 B	$7.13 B

Key Drivers for Tesla’s Performance

Improved Margins: Tesla’s management has been cutting manufacturing costs and expanding margins, resulting in strong revenue and net income gains since 2020. Its gigafactories in Shanghai, China, and Berlin, Germany, should help Tesla reduce export-related red tape and tariffs for upcoming EVs, resulting in lower overseas prices and increased sales.

R&D Paying Off: Thanks to its FSD and robotaxi R&D, Tesla is leading well ahead of GM’s Cruise and Alphabet’s Waymo. Chinese companies like Apollo Go and WeRide are viewed as better-equipped robotaxi competitors in a field that may soon grow rapidly.

Diversified Business Segments: Tesla’s Supercharger, energy, and battery businesses have grown rapidly, further distinguishing it from its EV peers as a company with many more technological initiatives.

Tesla Stock Forecast Through 2030

Wall Street’s consensus 12-month price target for Tesla is $306.32 per share, which is 8.6% lower than the most recent closing price. On average, analysts recommend holding shares, as positive sentiment has dwindled in the past few months.

24/7 Wall St.’s year-end price target for Tesla is $351.73, which represents about 5% upside potential. Our forecast through the end of the decade is based on the company seeing projected revenue growth climb from $112.091 billion in 2025 to $297.430 billion in 2030, alongside normalized EPS growth of $1.91 in 2025 to $11.24 in 2030.

Year	Normalized EPS	Projected Revenue	Projected Stock Price	Potential Upside
2025	$1.91	$112.091 B	$351.73	5.0%
2026	$2.98	$133.938 B	$461.73	37.8%
2027	$3.84	$155.708 B	$556.71	66.2%
2028	$5.76	$193.500 B	$837.58	150.0%
2029	$8.60	$248.572 B	$980.46	192.7%
2030	$11.24	$297.430 B	$1,116.86	233.4%

Tesla Bull, Base, and Bear Stock Price Prediction and Forecast

The post Tesla (NASDAQ: TSLA) Stock Price Prediction and Forecast 2025-2030 (Aug 14) appeared first on 24/7 Wall St..

Microsoft (NASDAQ: MSFT) Stock Price Prediction for 2025: Where Will It Be in 1 Year

Joel South — Thu, 14 Aug 2025 09:38:37 -0400

Shares of Microsoft (NASDAQ:MSFT) lost 0.21% over the past five trading sessions, pausing a rally that’s seen the stock gain nearly 479% since its year-to-date low on April 8. The company’s reported strong Q2 earnings on July 30. The Magnificent Seven mainstay reported EPS of $3.65 versus analysts’ expectations of $3.35, while quarterly revenue came in at $76.44 billion. MSFT is now up 28.25% this year.

Earlier in July, the stock had seen multiple price target upgrades. Citi raised its price target on Microsoft to $613 from $605 while keeping a “Buy” rating. Piper Sandler raised its price target for MSFT to $600 from $475 while keeping an “Overweight” rating.

On June 5, it was reported that the company will be expanding its AI and cloud investments in Switzerland, committing $400 million to expand its data center infrastructure in the European nation. The additional capacity is expected to support more than 50,000 current customers and expand the availability of AI services for more sectors, including health care, finance government. Microsoft is capitalizing on its Azure platform’s momentum as revenue jumped 33% in FY25 Q3, driven by AI services.

When the company last reported earnings, it announced that total revenue rose 13% to $70.1 billion and it generated earnings of $3.46 per share, beating estimates of $3.22 per share. Despite a $800 million charge in Q1 from its investment in General Motors‘ (NYSE:GM) Cruise robotaxi initiative that the automaker subsequently shutdown, Microsoft’s focus on AI and cloud resilience continues to fuel optimism.

However, its decision earlier in May fire 6,000 employees — or 3% of its workforce — signals the tech giant is serious about cost discipline amid economic uncertainty. With analysts eyeing sustained cloud demand, 24/7 Wall St. conducted analysis to explore whether Microsoft can maintain its upward trajectory and drive long-term growth.

Key Points in This Article:

Microsoft is dedicating significant capex to AI and cloud infrastructure in order to compete with other tech firms.
Microsoft’s gaming segment grew 44% last year, providing significant revenue to complement its software, cloud and AI business lines.
If you’re looking for an AI stock early in the AI growth cycle, grab a complimentary copy of our “The Next NVIDIA” report. It has a software stock that could ride dominance in AI to returns of 10x or more.

Why Invest in Microsoft

Microsoft navigates challenges, but remains a prime investment due to its AI and cloud dominance. Third-quarter earnings showcased robust demand for its Intelligent Cloud segment, though tariff risks linger. Microsoft’s $80 billion cash reserve fuels its $80 billion investments in cloud and AI infrastructure, with over half in the U.S.

Its Microsoft 365 Copilot, adopted by over 70% of Fortune 500 firms, drives productivity revenue, positioning Microsoft to capture the AI market’s 37% compounded annual growth predicted through 2030. Similarly, partnerships with Oracle (NYSE:ORCL) for multi-cloud solutions bolster its competitiveness against Amazon‘s (NASDAQ:AMZN) AWS.

When Microsoft last reported earnings, EPS beat by 7.40% and revenue beat by 2.37%. The EPS beat marked the 15th time in the past 16 quarters that the company surpassed estimates, with EPS coming in at $3.46 versus the consensus forecast of $3.20.

Microsoft (MSFT) As a Company

Microsoft reported a gross profit of $49.8 billion, up 14% year-over-year, with gross margins at 68%, driven by strong cloud and AI demand. The company committed to continuing spending on capital expenditures, focusing on AI data center expansion to meet enterprise needs. Analysts expect Q4 capex to remain elevated at $16 billion to $17 billion to support Microsoft’s cloud infrastructure growth.

Tariff uncertainties do pose risks, even with the pause on China, as supply chain cost pressures for server hardware are not eliminated. Microsoft’s operating income of $32 billion was tempered by a 5% rise in operating expenses, reflecting heavy AI R&D investments. Despite no revenue from its $13 billion OpenAI stake, Microsoft reported $42.4 billion in Microsoft Cloud revenue, up 20% year-over-year.

Beyond cloud, Microsoft’s gaming segment grew 44% with 43 points of the gain coming from its acquisition of Activision, but bolstered by Xbox content and Bethesda’s Starfield expansion. A partnership with Oracle for multicloud solutions strengthens its enterprise offerings, further diversifying its revenue. Wall Street projects Q4 revenue of $73.8 billion, up 14%, driven by Microsoft’s AI and cloud momentum.

Microsoft As a Stock

Broadly, Wall Street analysts’ remain bullish, with 30 of 33 analysts covering MSFT assigning it a “Buy” rating, three assigning it a “Hold” rating and zero assigning it a “Sell” rating. Overall, the stock receives a consensus “Strong Buy” rating. Wall Street’s price targets cover a significant range, spanning $475 per share on the low end to $613 per share on the high end. The median one-year price target for MSFT is $611.28, which represents 13.87% potential upside from today’s share price.

Institutional ownership currently stands at 73.05%, with three of the four largest buy-side firms — Vanguard, BlackRock and State Street — holding a collective 1.570 billion shares of Microsoft.

Estimate	Price Target	%Change From Current Price
Low	$520	-0.24%
Median	$623.34	19.57%
High	$675	29.48%

Microsoft (MSFT) Stock Prediction in 2025

Microsoft’s 33% Azure growth and 20% cloud revenue increase in Q3 position it for AI market gains. However, $20 billion quarterly capex and tariff risks require caution. Its $80 billion cash reserve and Oracle partnership offer stability, making MSFT stock a buy for growth investors, even as valuation concerns linger.

24/7 Wall St.’s price target for Microsoft is $563.64, implying downside potential of 7.98% from the stock’s current price. This cautious target reflects Azure’s strength and Q4 revenue guidance of $73.7 billion, balanced against the need for higher capex spending and potential supply chain disruptions, positioning it at a realistic estimate of its leading presence in the space.

The post Microsoft (NASDAQ: MSFT) Stock Price Prediction for 2025: Where Will It Be in 1 Year appeared first on 24/7 Wall St..

Klarna’s loss widens as fintech readies another shot at New York listing

Thu, 14 Aug 2025 09:32:42 -0400

Revenues jump a fifth to $823mn as Swedish buy now, pay later group continues US expansion and neobank drive

Bullish (BLSH) Soars 83% on IPO: Is This Crypto Stock a Must-Buy?

Rich Duprey — Thu, 14 Aug 2025 09:32:26 -0400

Key Points in This Article:

Bullish (BLSH) is a Peter Thiel-backed crypto exchange targeting institutional investors with advanced trading tools.
Shares surged 83% on its IPO debut, with premarket gains signaling continued investor enthusiasm.
Investors must decide whether to buy now or wait for a potential valuation correction.
Nvidia made early investors rich, but there is a new class of ‘Next Nvidia Stocks’ that could be even better. Click here to learn more.

A Stellar Debut for Bullish

Bullish (NYSE:BLSH) is a cryptocurrency exchange that is backed by Peter Thiel. It made a thunderous entrance into the public markets with its initial public offering (IPO) yesterday, raising up to $629 million and targeting a $4.2 billion valuation.

The platform specializes in providing institutional-grade infrastructure for digital asset trading, offering advanced tools like automated market-making and portfolio management for high-net-worth individuals, hedge funds, and corporations.

By targeting institutional investors, Bullish aims to bridge traditional finance and crypto markets with a focus on regulatory compliance and liquidity. On its first trading day, Moreover, it plan to only focus on trading Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH), the two largest and most stable cryptos, which will also insulate it from the riskier tokens on the market.

BLSH shares skyrocketed 83% yesterday to $68 per share from its $37 offer price — it had raced as high as $118 per share, a 213% gain — reflecting intense market enthusiasm. With premarket trading showing continued strength as shares are up 5%, investors face a critical question: Is this the moment to jump aboard the Bullish rocket, or should they wait for a potential pullback as the market reassesses its lofty valuation?

Bridging Crypto and Traditional Finance

Bullish operates as a hybrid exchange, combining centralized and decentralized finance elements to cater to institutional investors. Its proprietary technology provides deep liquidity pools, low-latency trading, and portfolio optimization tools, distinguishing it from retail-focused platforms like Coinbase Global (NASDAQ:COIN) or Binance.

By prioritizing compliance with global regulations, Bullish appeals to institutions wary of crypto’s historically volatile and unregulated nature. The exchange also offers tokenized asset trading, aligning with a growing trend where traditional securities are digitized on blockchain platforms.

This positions Bullish to capitalize on the increasing institutional adoption of digital assets, as evidenced by Binance Research’s projection of a $1.3 trillion market opportunity for tokenized stocks, which surged 220% in July.

Bullish’s focus on automation and scalability ensures it can handle the high-volume trades typical of institutional clients, making it a key player in the evolving crypto ecosystem.

Institutional Crypto: A Long Runway for Growth

The market for institutional crypto investment is expanding rapidly, driven by increasing acceptance of digital assets as a legitimate asset class. Institutional investors, including pension funds and asset managers, are allocating larger portions of their portfolios to crypto, with global investment in digital assets reaching $22 billion in 2024, according to industry reports.

Bullish’s infrastructure is well-suited to capture this demand, offering robust security and compliance frameworks that address institutional concerns about custody and regulatory risks. The broader tokenized asset market, which Bullish taps into, is projected to grow significantly as more traditional assets like bonds and equities are blockchain-integrated.

However, competition is fierce, with platforms like Kraken and Coinbase also vying for institutional clients. Regulatory uncertainty and crypto market volatility remain risks, but the long-term outlook suggests substantial growth potential as institutional adoption accelerates, giving Bullish a promising runway if it can maintain its technological edge.

Key Takeaway

Bullish’s 83% first-day surge signals strong market confidence, but its $4.2 billion valuation may already price in much of its near-term growth. The institutional crypto market offers a long runway, with tokenized assets and digital trading platforms poised for expansion.

However, the stock’s meteoric rise suggests potential overvaluation, especially given crypto’s inherent volatility and competitive pressures. Investors may benefit from waiting for a pullback to secure a better entry price, as saving a dollar or two could mitigate downside risk in a correction.

That said, Bullish’s strong backing, innovative technology, and alignment with institutional trends make it a compelling long-term hold for those bullish on crypto’s future. Cautious investors might wait for a dip, while risk-tolerant ones could ride the momentum, confident in Bullish’s growth potential.

The post Bullish (BLSH) Soars 83% on IPO: Is This Crypto Stock a Must-Buy? appeared first on 24/7 Wall St..

Nio (NYSE: NIO) Stock Price Prediction and Forecast 2025-2030 (Aug 14)

Joel South — Thu, 14 Aug 2025 09:15:17 -0400

The tariff-driven market volatility has been rough on shares of Chinese electric vehicle (EV) maker Nio Inc. (NYSE: NIO), which in April fell to a multiyear low of $3.02. Shares rebounded afterward, but they are now up 5.9% year to date, after pulling back modestly in the past week on news of slowing EV deliveries in China and production concerns. Nio recently reported a solid increase in deliveries in the first and second quarters, following the launch of its new mass-market brands, Onvo and Firefly.

24/7 Wall St. Key Points:

Nio is one of the largest electric vehicle companies in China and the first to pioneer swappable battery packs.
Due to new product launches and growing market share, 24/7 Wall St. projects significant gains for the stock by the end of the decade.
If you’re looking for a megatrend with massive potential, make sure to grab a complimentary copy of our “The Next NVIDIA” report. It includes a complete industry map of AI investments, including many small caps.

The stock is now trading 8.5% higher than six months ago. Compared to a year ago, Nio’s share price is up 18.8%. However, Wall Street sentiment remains cautious, with less than half of analysts recommending buying shares. Their mean price target has crept up to $4.93, which is more than 6% higher than the current share price. Note that the high price target is all the way up at $8.12. Goldman Sachs upgraded its rating to Neutral back in June. Mizuho reiterated its Neutral rating on the shares, and it has a $3.50 price target. Barclays maintained its Underweight rating with a $3.00 target. But Morgan Stanley reiterated its Buy rating.

There are some encouraging tailwinds for shareholders, though. The Chinese carmaker’s high-performance models, which feature a +600-mile range, have caught the eye of vehicle enthusiasts and investors, while addressing range anxiety issues by creating battery swap technology as a supplement to charging. Nio is a leading electric vehicle manufacturer in China and has been expanding its presence internationally.

From a stock performance standpoint, Nio has been a tale of two stories. When shares debuted on the New York Stock Exchange on Sept. 12, 2018, at $9.90, they struggled to build momentum. Not until the summer of 2020 did the stock begin to surge, gaining over 810% from June 26, 2020, to Feb. 9, 2021, when the stock hit its all-time high of $62.84. Shares have fallen considerably since then, but the long-term outlook remains strong.

24/7 Wall St. aims to provide readers with our assumptions about the stock’s prospects going forward, what growth we see in Nio stock for the next several years, and what our best estimates are for Nio’s stock price each year through 2030.

Nio Stock Early-Stage Growth

The following is a table of Nio’s revenues, operating income, and share price for its first few years as a public company.

Year	Share Price (End of Year)	Revenues (CNY)*	Operating Income*
2018	$5.39	4,951.2	(9,595.6)
2019	$3.45	7,824.9	(11,079.2)
2020	$40.00	16,257.9	(4,607.6)
2021	$16.70	36,136.4	(4,496.3)
2022	$7.87	49,268.6	(15,640.7)
2023	$4.71	55,617.9	(22,655.2)

*Revenue and operating income in Billion CNY (1CNY=.14 USD)

Now let’s take a look at Rivian Automotive Inc. (NASDAQ: RIVN) in the first few years it was a publicly traded company (here is Rivian’s stock price forecast):

Year	Share Price (End of Year)	Revenues	Operating Income
2021	$50.24	$5.67	($0.71)
2022	$19.30	$7.14	($2.27)
2023	$10.70	$7.83	($3.19)
2024	$4.36	$9.00	($2.99)

Revenues and operating income in billions

Both firms have shown similar revenue growth, but Rivian’s annual operating losses have been greater than those of Nio.

Nio formerly contracted its manufacturing to Jianghuai Automobile Group, paying a fee for each vehicle produced in addition to fixed costs. The company has since acquired the factory from JAC. This agreement was beneficial for a young startup in a highly capital-intensive market. However, once scale is reached, the variable cost model has its downsides.

Three Key Drivers of Nio’s Performance

Product Portfolio Expansion and Growing Market Share

New Model Launches: Similar to Tesla Inc. (NASDAQ: TSLA), Nio started off with a higher-end roadster and used the higher-end models to reinvest into more affordable, mass-market vehicles. Nio aims to push further into price-conscious markets while also adding options for its more premium customers.
Add-On Services: With its battery swap technology, Nio plans to roll out an innovative battery-as-a-service solution for its customer base. The company plans to build over 4,000 swap stations by the end of 2025, with 1,000 of them located outside China.

Increased Vehicle Deliveries and Market Penetration

Growing NEV Adoption: The market for new energy vehicles (NEVs) is on the rise in China. Nio expects vehicle deliveries in 2025 to double the output from 2023, which was roughly 165,000 units. This still only makes up about 2% of the Chinese NEV market and gives Nio plenty of roadway to gain market share for years to come.
International Expansion: Nio’s strategy includes expanding its market presence outside China. The company built its first overseas battery-swap station in Hungary in 2022 and has several service centers and Nio accessory businesses throughout Europe.
In December 2024, the company delivered 31,138 vehicles, good for a 72.9% year-over-year increase. In total, 221,970 vehicles were delivered in 2024, which was a year-over-year increase of 38.7% compared to 2023. Cumulative deliveries reached 671,564 as of Dec. 31, 2024.

Advancements in Technology and Customer Experience

Battery and Charging Solutions: Nio’s advancements in battery technology and charging solutions aim to alleviate range anxiety among consumers and help lower the overall cost of the vehicle by 15% to 30%.
Focus on Younger Consumers: Nio’s leadership in EV technology will provide brand equity to younger generations of drivers who value enhanced technology packages.

How Nio’s Next Five Years Could Play Out

Year	Revenue*	Shares Outstanding	P/S Est.
2025	97,052	2,050 mm	1x
2026	114,172	2,050 mm	1x
2027	134,643	2,050 mm	1.5x
2028	257,634	2,050 mm	1.5x
2029	176,533	2,050 mm	1.5x
2030	189,548	2,050 mm	2x

*Revenue in CNY millions

Compared to Rivian and Tesla, Nio’s price-to-sales valuation will be moderately discounted. While Nio is in solid financial standing and has a premium brand image, it remains uncertain how much competition the company will face both in China and as it expands overseas. The company is already spending a quarter of revenues on R&D and if Nio cannot capitalize on this spend, the stock price will be sluggish compared to North American EV manufacturers.

As mentioned, Wall Street analysts give Nio a one-year price target of $4.93. That represents 6.7% upside potential from the current share price. At 24/7 Wall St., we expect to see revenue growth of 60% for the year, with a price-to-sales multiple of 1x. That puts our year-end price target at $4.21, which would be a retreat of almost 9% from today’s share price.

However, for 2030, we estimate Nio’s stock price to be $23.56 per share. Our estimated share price would be about 411% higher than the current one.

Here is a look at our projections for the years in between:

Year	Price Target	Upside Potential
2025	$4.21	−8.9%
2026	$6.12	32.5%
2027	$13.80	198.7%
2028	$24.01	419.7%
2029	$16.45	256.1%
2030	$23.56	410.0%

Rivian Automotive Stock Price Prediction for 2025: Where Will It Be in 1 Year

The post Nio (NYSE: NIO) Stock Price Prediction and Forecast 2025-2030 (Aug 14) appeared first on 24/7 Wall St..

Fed Faces High Bar for Big Cuts Despite White House Pressure

Colby Smith — Thu, 14 Aug 2025 09:12:49 -0400

The Federal Reserve is poised to lower interest rates in September. But signs of stickier inflation could limit how much relief officials can ultimately provide to borrowers.

Stock Market Live August 14: Wholesale Inflation Rises, S&P 500 (VOO) Falls

Joel South — Thu, 14 Aug 2025 09:03:48 -0400

This article will be updated throughout the day, so check back often for more daily updates.

Two days ago, news that US retail consumer inflation rose only 2.7% in July (that’s 0.1% less than expected) sent the stock market flying, and helped the Vanguard S&P 500 ETF (NYSEMKT: VOO) gain nearly a full percentage point in a single day. Two days later, however, the U.S. Bureau of Labor Statistics is reporting that the producer price index (which you can think of as wholesale price inflation, a bit farther up the supply chain) rose 0.9% in July.

The increase was “the biggest 12-month move since February,” according to CNBC, far more than the 0.2% increase Wall Street had expected, and pushed the annualized PPI inflation rate up to 3.3%.

Or put another way: PPI inflation is increasing so fast, the chance the Federal Reserve will lower interest rates in September just got knocked flat.

In a double-whammy for the stock market, short-term bond rates are rising in response to today’s news, with the 2-year Treasury note up 0.6 basis points to 3.695%, and the 1-year note up three times that at 3.882%.

And as interest on bonds gets more attractive, investing in riskier stocks becomes relatively less attractive. No surprise then, that the Vanguard S&P 500 ETF is trading lower premarket — down 0.3%.

Earnings

Turning now to S&P 500 component company earnings:

Tech giant Cisco Systems (Nasdaq: CSCO) beat earnings by a penny last night, reporting a $0.99 per share profit for its fiscal Q4 2025. Sales were $14.67 billion, or $50 million more than Wall Street had predicted. Nevertheless, Cisco stock is trading down about 1.5% premarket today.

Machines-maker Deere & Company (NYSE: DE) beat earnings by 17 cents this morning, reporting a $4.75 per share fiscal Q3 profit on sales of $10.6 billion — also above estimates. On the other hand, Deere lowered its net income forecast for the full year slightly, and its stock is down more than 6% premarket.

Outside the S&P 500, Advance Auto Parts (NYSE: AAP) beat earnings by 16 cents with a $0.69 per share profit on sales of $2 billion, slightly ahead of expectations. Management laid out a very wide forecast for 2025 earnings, however, saying it could earn anywhere from $1.20 per share to $2.20 per share, and really doesn’t know which. Advance Auto stock is down more than 2%.

The post Stock Market Live August 14: Wholesale Inflation Rises, S&P 500 (VOO) Falls appeared first on 24/7 Wall St..

There’s Money to Be Made From ‘MAHA.’ Food Companies Want In.

Kim Severson — Thu, 14 Aug 2025 08:52:11 -0400

Processed-food giants and produce growers are tweaking products and ads to reach the Make America Healthy Again movement. But the strategy carries risks.

Meta Platforms (NASDAQ: META) Stock Price Prediction for 2025: Where Will It Be in 1 Year (Aug 14)

Joel South — Thu, 14 Aug 2025 08:45:09 -0400

So far this year, one of the better performers among the Magnificent 7 has been Meta Platforms Inc. (NASDAQ: META). Its shares have outperformed the broader market and are currently up 31.9% year to date and just hit an all-time high of $795.46. For comparison, other Magnificent 7 members have fared much worse. Look no further than Apple Inc. (NASDAQ: AAPL) and Tesla Inc. (NASDAQ: TSLA), which are down 6.8% and 18.7%, respectively, since the start of the year.

24/7 Wall St. Key Points:

Meta Platform’s AI push is a key driver for the company in 2025, with integrations coming across numerous platforms, which is fueling engagement and increasing ad sales.
Despite economic cloudiness, the company announced that its 2025 capital expenditures (capex) estimate increased significantly, much of which will be allocated to AI project development and integration.
If you’re looking for a megatrend with massive potential, make sure to grab a complimentary copy of our “The Next Nvidia” report. This report breaks down AI stocks with 10x potential and will give you a huge leg up on profiting from this massive sea change.

Furthermore, strong first-quarter and second-quarter earnings reports lend credence to the claim that Meta will continue to outshine its competitors over the next year. That belief has been bolstered by its recent performance. Since hitting its year-to-date low on April 21, the stock has rallied 53.9%. The near-term future of the economy is uncertain—just like the markets themselves—and Meta Platforms CEO Mark Zuckerberg is a controversial figure. Certainly, Zuckerberg’s sudden shift to the metaverse and brand name change to Meta Platforms raised a few eyebrows several years ago.

Now, however, the Meta Platforms CEO is shifting the company’s focus and riding a powerful, bullish trend. Against this complex backdrop with many moving parts, investors should consider the wide range of Meta stock price targets and formulate a strategy for all possible outcomes. To help, 24/7 Wall St. conducted some analysis. Let’s jump in.

Why Invest in Meta Platforms?

Let’s start by addressing the elephant in the room. Investors should not rely on Meta Platforms’ Reality Labs metaverse business to drive the company’s near-term future growth. In Q2 2025, Reality Labs generated $370 million in revenue, down from $412 million in the prior quarter. During that same time frame, Reality Labs recorded a loss from operations of $4.53 billion.

Unless there is a miraculous turnaround for Reality Labs, Meta Platforms investors should hope that Zuckerberg does not decide to double down on the metaverse this year. Fortunately, it appears that the CEO’s attention has turned to a different tech field lately. In particular, Zuckerberg seems to expect AI to be Meta Platforms’ key driver for 2025. AI integrations into Facebook, Instagram, Messenger, and WhatsApp could provide an economic moat for Meta Platforms if new features translate to greater user engagement. WhatsApp, in particular, has seen notable growth with more than 3 billion monthly users now.

Meta’s AI focus evidently helped the company succeed in the second quarter of the year despite losses in its metaverse business. Impressively, Meta Platforms grew its revenue 21% year over year to $47.5 billion, beating Wall Street’s consensus call for $41.3 billion. Furthermore, the company’s earnings per share (EPS) surged 38% to $7.14, easily outpacing the analysts’ consensus estimate of $5.89.

There’s no doubt that Zuckerberg is all-in on the AI revolution now. He envisions a future in which AI will be used for “a lot” of “social tasks.” And he believes it’s “really compelling” that AI will “get to know you better and better.” Some reporters have expressed skepticism of an AI-infused future. Yet, if Meta Platforms can parlay machine learning into profits, investors shouldn’t dismiss the growth potential of Meta stock.

Another key driver for Meta Platforms is its Threads short-form messaging platform. Granted, Threads is still playing catch-up to the popular X platform, which is owned by Tesla CEO Elon Musk. Still, Threads is making inroads as its monthly active user count grew from 320 million in 2024’s fourth quarter to 350 million in Q1 of 2025. That’s not at the level of X, which reportedly has more than 580 million monthly active users. Yet, perhaps AI feature integration can make Threads even more competitive with X in the coming quarters.

The company expects third-quarter 2025 revenue to range from $47.5 billion to $50.5 billion. The Ray-Ban-Meta-AI glasses demonstrate some eye-catching growth for the company, with the products’ sales tripling over the past year.

Meta Platforms as a Stock

It is impossible to know how the economy will perform for the rest of 2025. Similarly, it remains unclear whether Meta Platforms will achieve significant returns on its AI investments. These unknowns will not stop analysts from publishing their Meta stock price predictions, though.

Guggenheim analyst Michael Morris raised the firm’s price target on Meta Platforms to $800 from $725 and kept a Buy rating on the shares ahead of Q2 earnings. The firm believes that the magnitude of opportunity and the competitive intensity in pursuing AI growth are likely to fuel further “aggressiveness in investment” from Meta and higher levels of sustained capex than the firm previously modeled, the analyst tells investors in a preview.

The aforementioned uncertainties are reflected in the wide range of Wall Street analysts’ price targets for Meta Platforms. Of 68 analysts covering the shares, 58 recommend buying, with nine having Strong Buy ratings. However, price targets are less concentrated. The Zuckerberg-led firm has a high price target of $1,086.00, a median price target of $861.06, and a low target price of $658.00.

Estimate	Price Target	Change From Current Price
Low	$658.00	−15.6%
Median	$861.06	10.4%
High	$1,086.00	39.2%

Meta Platforms 2025 Outlook

Meta Platforms raised its 2025 capex estimate from a range of $64 billion to $72 billion to a range of $66 billion to $72 billion. By now, you can probably guess what Meta Platforms will spend those extra billions on. If you guessed AI, you are correct. More specifically, Meta Platforms’ management anticipates “additional data center investments to support our artificial intelligence efforts as well as an increase in the expected cost of infrastructure hardware.”

Hence, the multi-billion-dollar question is whether Meta Platforms can effectively leverage its costly AI enhancements. That’s difficult to predict. The same goes for the state of the economy, which might not support an increase in ad spending if macroeconomic conditions deteriorate in the remainder of this year.

24/7 Wall St.’s Meta forecast is a little more bullish than the mean forecast, calling for the share price to rise to $875.46 by year’s end. That implies a run of 12.2%. It is based on the company’s ability to sustain strong ad revenue while increasing efficiency. This should drive its bottom line despite higher capital expenditures for AI objectives.

Ultimately, your price target for Meta Platforms stock should depend on whether you expect the company to take full advantage of ramped-up AI features. If so, then get ready for Meta Platforms stock to eventually head for new all-time highs. However, it may be a bumpy ride along the way.

Can Meta Join the Big Tech Dividend Elite?

The post Meta Platforms (NASDAQ: META) Stock Price Prediction for 2025: Where Will It Be in 1 Year (Aug 14) appeared first on 24/7 Wall St..

Nasdaq Composite Live: Interest Rate Cut Odds Now up to 97.8%

Ian Cooper — Thu, 14 Aug 2025 08:23:58 -0400

After a few days of massive gains, Nasdaq futures are flat.

The benchmark saw fresh new highs after the release of cooler-than-expected inflation data for July. That only strengthened hopes for a potentially aggressive interest rate cut from the Federal Reserve at its September meeting.

“After yesterday’s ‘not as bad as it could have been’ July Consumer Price Index report, the equity markets are now in full ‘easing expectation’ mode,” said CFRA Research’s chief investment strategist Sam Stovall, as quoted by CNBC. “Even though Thursday’s Producer Price Index (PPI) is projected to show increases on a month-over-month (M/M) and year-over-year (Y/Y) basis, we think investors will overlook them.”

Fueling more momentum, U.S. Treasury Secretary Scott Bessent believes the Federal Reserve will cut interest rates by half a point at its September meeting. As he told Bloomberg, “I think we could go into a series of rate cuts here, starting with a 50-basis point rate cut in September. If you look at any model (it suggests that) we should probably be 150, 175 basis points lower.”

At the moment, the odds we’ll see a sizable rate cut are now up to 93.3%, according to the CME FedWatch tool, which you can see here.

UBS analysts say investors should hedge for volatility

With the Volatility Index now back to 14.6, markets should be mindful of the potential for volatility spikes, according to UBS, as also noted by CNBC.

“While the VIX index of implied stock volatility has fallen to the lowest level since December last year, market swings could pick up quickly if trade tensions escalate significantly, economic data weakens faster than expected, or if geopolitical risks worsen,” they added.

Some ways to hedge for potential volatility are with ETFs and ETNs, such as:

ProShares Ultra VIX Short-Term Futures ETF (UVXY): The ETF was designed to match two times (2x) the daily performance of the S&P 500 VIX Short-Term Futures Index. The last time volatility exploded higher,
iPath S&P 500 VIX Short-Term Futures (VXX): The VXX ETN which provides exposure to the S&P 500 VIX Short-Term Futures Index.
ProShares VIX Short-Term Futures ETF (VIXY): ProShares VIX Short-Term Futures ETF provides long exposure to the S&P 500 VIX Short-Term Futures Index, which measures the returns of a portfolio of monthly VIX futures contracts with a weighted average of one month to expiration.

The post Nasdaq Composite Live: Interest Rate Cut Odds Now up to 97.8% appeared first on 24/7 Wall St..

Trump’s Pay-for-Play Chips Deal May not Be the Last

Thu, 14 Aug 2025 07:57:12 -0400

The Trump administration’s unorthodox Chinese export pact with Nvidia and Advanced Micro Devices is worrying trade experts.

Thyssenkrupp cuts outlook as trade turmoil dents sales

Thu, 14 Aug 2025 07:33:32 -0400

Chief says industrial group is ‘very much feeling the weak market environment’ despite higher defence spending

With 96 Recalls, Ford’s EV Plan in Doubt

Douglas A. McIntyre — Thu, 14 Aug 2025 07:12:36 -0400

Ford Motor Co. (NYSE: F) CEO Jim Farley said plans to build a new manufacturing system to produce its next-generation electric vehicle (EV) present a risk. “There are no guarantees,” he added. The primary risk, though unstated, is the company’s remarkably poor record as a car manufacturer. That overshadows the fact that its new car-building system has never been tried before.

24/7 Wall St. Key Points:

A new Ford Motor Co. (NYSE: F) electric vehicle manufacturing system comes with significant risk.
As if 96 recalls and warranty costs weren’t enough for investors to worry about.
Take this quiz to see if you’re on track to retire. (sponsored)

Ford says its new “Universal EV Platform” is 40% faster than its current system. Speed is not the only benefit. The fact is that the plan saves money. And, Farley says, it will improve reliability.

“We transformed the traditional assembly line into a tree with three main branches,” Ford said. One will make the front of the car. The second one will make the back. The third branch is the “structural battery,” which will include seats, consoles, and carpeting.

Running a new system requires precision. Running a totally new one takes even more. Ford cannot look at a similar system at another company for benchmarking. That makes the task even more difficult.

Ford has had 94 recalls this year (by one count). The total number of vehicles recalled stretches well into the millions. This has happened despite regular comments that Ford can create better quality programs to ensure fewer mistakes.

The recalls have beaten down investors as well. And warranty costs hit Ford’s financials by $6 billion last year. The figure could be nearly as much this year, based on the company’s financial reports so far.

Ford’s significant risk for its new manufacturing system is not that it is new. The risk is that its manufacturing operations are so awful.

Ford Threatens Investors With Another Family Member

The post With 96 Recalls, Ford’s EV Plan in Doubt appeared first on 24/7 Wall St..

US oil producers say Opec ‘price war’ will halt shale boom

Thu, 14 Aug 2025 06:38:37 -0400

Energy Information Administration predicts drop in American output next year as cartel’s supplies soar

Ukraine’s GDP Same as Kansas

Douglas A. McIntyre — Thu, 14 Aug 2025 06:37:21 -0400

As the war between Russia and Ukraine rages into its third year, the Ukrainian economy is occasionally mentioned. The United States has access to some of Ukraine’s valuable minerals. Ukraine spent $65 billion on weapons last year, according to the International Peace Research Institute (SIPRI). That is about one-third of Ukraine’s gross domestic product (GDP), which shows how small the total is. At $190 billion last year, it is slightly less than the GDP of Kansas, which ranks 33rd among all states based on that yardstick.

24/7 Wall St. Key Points:

Ukraine’s gross domestic product is slightly less than the GDP of Kansas.
Both are large producers of corn and wheat, but some fields in Ukraine have become battlefields.
Take this quiz to see if you’re on track to retire. (sponsored)

Ukraine’s GDP peaked in 2021 at about $200 billion. It dropped to $160 billion in 2022 and rose to $180 billion in 2023. Before the war, Ukraine’s economy was driven by metals, engineering, chemicals, and food. It was among the top global producers of wheat and corn, grown in one of the most productive agricultural regions in Europe. Production across these crops has decreased as much as 30%. Some of the farm areas have become battlefields.

Ukraine faces a GDP challenge, if and when the war ends. Its military spending will probably decline. It will take years, however, to rebuild much of its economy. According to The World Bank, nations have put together funds that total over $80 billion to revive Ukraine’s economy.

USA Facts reports that the largest contributor to the Kansas economy is manufacturing, followed by real estate and leasing. Information services are probably its fastest-growing sector. Kansas is also among the largest producers of corn and wheat.

The spread in productivity between Ukraine and Kansas is huge. Kansas has a population of about 3 million. Ukraine’s population is near 38 million.

How Much the U.S. Spends on Foreign Aid and Where It Goes

The post Ukraine’s GDP Same as Kansas appeared first on 24/7 Wall St..

AI boom helps Apple’s biggest supplier earn more from servers than smartphones

Thu, 14 Aug 2025 06:12:53 -0400

Figures mark a milestone for contract electronics maker Foxconn

Fed Faces High Bar for Big Cuts Despite White House Pressure

Colby Smith — Thu, 14 Aug 2025 05:03:46 -0400

The Federal Reserve is poised to lower interest rates in September. But signs of stickier inflation could limit how much relief officials can ultimately provide to borrowers.

The Live Music Business Is Booming. Now Rap Is Getting a Piece, Too.

Ross Scarano — Thu, 14 Aug 2025 05:01:38 -0400

Artists like Kendrick Lamar and Tyler, the Creator are pulling in huge audiences on the road, and YoungBoy Never Broke Again is preparing for his first-ever tour.

How Train Riders With Disabilities Are Faring on Amtrak

Gabe Castro-Root — Thu, 14 Aug 2025 05:00:54 -0400

Passengers are facing blocked wheelchair space, getting stuck in doors and suffering other indignities 35 years after the Americans With Disabilities Act became law.

Bitcoin extends summer rally to hit fresh record high

Thu, 14 Aug 2025 03:59:59 -0400

World’s biggest cryptocurrency boosted by rise of ‘bitcoin treasury’ companies and support from Trump administration

TikTok Shop in Japan and Danang’s hub dreams

Thu, 14 Aug 2025 03:03:10 -0400

The inside story on the Asia tech trends that matter, from Nikkei Asia and the Financial Times

Centrica to buy National Grid’s LNG terminal in £1.5bn deal

Thu, 14 Aug 2025 02:57:37 -0400

British Gas owner and Energy Capital Partners form joint venture to take over import facility in Thames estuary

The bond market stand-off

Thu, 14 Aug 2025 01:30:09 -0400

Plus survey response rates and the BLS

You Can Buy One of the C.I.A.’s Greatest Mysteries at an Auction House

John Schwartz and Jonathan Corum — Thu, 14 Aug 2025 01:00:07 -0400

Sleuths have solved three of the panels of the Kryptos sculpture at the agency’s headquarters. Now the artwork’s creator is announcing the sale of the solution to the fourth.

US Treasury secretary Bessent says Japan is ‘behind the curve’ on rates

Thu, 14 Aug 2025 00:38:02 -0400

US Treasury secretary’s comments mark rare intrusion into Asian ally’s monetary policy

The moneymen funding Big Tech’s AI dreams

Thu, 14 Aug 2025 00:00:29 -0400

Plus, the blockbuster IPOs putting bankers under the microscope

DeepSeek’s launch of new AI model delayed by Huawei chip issues

Thu, 14 Aug 2025 00:00:19 -0400

Difficulties of training Chinese start-up’s latest system with domestic tech highlights dependence on Nvidia

As Trump Pushes International Students Away, Asian Schools Scoop Them Up

Lydia DePillis and Jin Yu Young — Thu, 14 Aug 2025 00:00:09 -0400

The president’s hostility toward foreign students has made American higher education a riskier proposition for them. Other countries are eager to capitalize.

The gold market is too important to be left to private clubs

Thu, 14 Aug 2025 00:00:09 -0400

The institutions underpinning the trading and storage of the precious metal remain opaque and under-regulated

French borrowing costs close in on Italy’s as investors fret over debts

Thu, 14 Aug 2025 00:00:09 -0400

Anxiety grows over France’s public finances just as Rome improves its standing with bondholders

Who pays for the $3tn AI building boom?

Thu, 14 Aug 2025 00:00:09 -0400

With the data centre race in full swing, private capital is joining Big Tech in seeking to capture the rewards

The art of persuasion: how top AI chatbots can change your mind

Thu, 14 Aug 2025 00:00:09 -0400

Research shows large language models have developed the ability to powerfully influence users

Opec pops US shale’s balloon

Thu, 14 Aug 2025 00:00:00 -0400

American output expected to drop next year as Opec’s supplies soar

‘If in doubt, do nothing’: how the Wellcome Trust’s investments outshone its peers

Wed, 13 Aug 2025 23:00:08 -0400

Under outgoing chief investment officer Nick Moakes the foundation made just a handful of big investment calls

Goodbye, $165,000 Tech Jobs. Student Coders Seek Work at Chipotle.

Natasha Singer — Wed, 13 Aug 2025 19:50:58 -0400

As companies like Amazon and Microsoft lay off workers and embrace A.I. coding tools, computer science graduates say they’re struggling to land tech jobs.

Mario Paglino, 52, and Gianni Grossi, 54, Die; Designers Made Barbies Into Art

Joanne Kaufman — Wed, 13 Aug 2025 18:44:33 -0400

They transformed dolls into one-of-a-kind pieces that sold for thousands of dollars. A married couple, they died in a car crash in Italy.

Live: Why Coherent (COHR) Dropped 17% After Q4 Earnings

Joel South — Wed, 13 Aug 2025 18:22:24 -0400

Live Updates

Live Coverage Updates appear automatically as they are published.

Every Wall Street Question, Summarized

6:21 pm

Here’s a summary of every question Wall Street asked and management’s response:

1) Can the data-center business keep growing fast next year?

Why investors asked: Hyperscale cloud companies are increasing capital spending, so the street wants to know if Coherent can keep pace.
Management’s answer: Demand outlook is “very strong.” They expect data center and communications to grow again sequentially in the current quarter. Growth drivers are 800-gigabit transceivers rising through 2025–2026, 1.6-terabit transceivers ramping on top of that, the optical circuit switch moving from first revenue toward scale, and continued strength in data-center-interconnect.

2) What is special about the new six-inch indium-phosphide line and U.S. manufacturing?

Why investors asked: Capacity and cost determine how much share Coherent can win in next-gen optics; U.S. production can be a strategic advantage amid tariffs and supply risk.
Management’s answer: The six-inch line began production in August and should deliver higher volume at lower cost. Coherent emphasizes a broad U.S. footprint (20+ sites, 13 states) as a differentiator for large customers; the Apple laser agreement is cited as proof of that value. Apple revenue should start in 2H26.

3) Which pieces are down sequentially in Q1 guidance, and why?

Why investors asked: To reconcile total guidance and identify any soft spots.
Management’s answer: Data center and communications should be up sequentially. Industrial is likely flat to down near-term (even excluding the ~$20M Aerospace & Defense step-down) due to macro uncertainty and tariff noise. Long-term, management still expects industrial to grow, aided by recurring service revenue.

4) How healthy is the optical-circuit-switch pipeline, and what is the edge versus mechanical switches?

Why investors asked: This is a new product in a potentially large market; investors want adoption proof.
Management’s answer: Pipeline is “very healthy.” The switch uses non-mechanical digital liquid-crystal technology (not moving parts) which offers much higher reliability—critical in artificial-intelligence data centers. Capacity is being added to support the ramp.

5) What does the Apple deal really mean for revenue certainty and margins?

Why investors asked: Coherent’s Apple exposure fell a few years back; investors want clarity on durability and profitability now.
Management’s answer: It is a multi-year expansion for a new generation of lasers used in iPhone and iPad, manufactured in Texas. Revenue begins 2H26. Management expects the arrangement to benefit gross margin and provide solid plant utilization.

6) Why did sequential growth in data center/communications moderate versus some peers?

Why investors asked: To assess relative share and trajectory as artificial-intelligence builds accelerate.
Management’s answer: Quarter-to-quarter lumpiness is normal (timing of orders, supply, transitions from 400-gigabit to 800-gigabit). Over FY25 the business grew more than 60% and management believes they gained share, with strong demand ahead from 800-gigabit, 1.6-terabit, the optical circuit switch, and data-center-interconnect.

7) Can foreign-exchange headwinds derail margin progress, and can Coherent reach a 40-plus percent gross margin?

Why investors asked: Q4 gross margin dipped sequentially on currency; the long-term model targets above 42%.
Management’s answer: The Q4 dip was mainly foreign exchange; cost reductions and price optimization were strong. Without the currency hit, Q4 would have exceeded the top end of guidance. Management is confident in the >42% long-term margin target.

8) Any geographic or customer-mix risks inside industrial lasers?

Why investors asked: To gauge near-term volatility.
Management’s answer: No unusual concentration. The caution is macro-driven, not customer-specific. In FY25, service contracts (recurring) grew faster than product sales, which is a margin tailwind. Near-term cautious; long-term constructive.

9) How strong is demand in data-center-interconnect, and what is driving it—training or inference?

Why investors asked: Inter-data-center traffic is exploding as artificial-intelligence clusters spread.
Management’s answer: Very strong—especially for coherent 100/400/800-gigabit transceivers. Demand is mostly driven by traffic spanning multiple data centers, not just within one facility.

10) Will Chinese optical makers pressure prices and share as speeds move to 800-gigabit and 1.6-terabit?

Why investors asked: Rising Chinese competitors can compress margins and take share.
Management’s answer: Coherent believes it gained share in FY25, particularly at higher speeds. The technology road map (800-gigabit now; three laser paths for 1.6-terabit; progress toward 3.2-terabit) and supply-chain resiliency (U.S. manufacturing plus internal indium-phosphide and laser capacity) are their defense. Pricing trends are as expected—no unusual pressure.

11) Will Coherent fully self-supply lasers as the six-inch line ramps?

Why investors asked: Internal supply can protect margins and availability.
Management’s answer: The company will continue a mix of internal and external sourcing. Over half of transceivers ship with electro-absorption modulated lasers, and over half of those lasers are internally made today.

12) Vietnam facility and silicon-carbide outlook?

Why investors asked: To understand global capacity and a previously weak end market.
Management’s answer: The Vietnam site supports materials businesses, including silicon carbide. Coherent exited pre-revenue devices/modules and is focusing on wafers and epitaxy. After a weak FY25, demand has stabilized; no FY26 headwind expected.

We're Compiling Our Notes

6:15 pm

Coherent’s call is over and we’ll post an update shortly with our notes. Simply leave this live blog open and the update should appear automatically.

Call Is Almost Done

6:00 pm

Coherent’s call is nearly finished, shares are still down about 17% as of 6 p.m. ET.

We’ll post our notes shortly from the call, but it is worth noting that nothing that was said materially changed the company’s share price.

That’s different than Cisco, which saw shares rally during the company’s conference call.

Coherent on Their Ability to Withstand Tariffs

5:22 pm

Here’s what Coherent CEO James Anderson had to say about the company’s ability to withstand tariffs on the company’s earnings call:

Over the past months, you’ve heard me stress the importance of Coherent’s dynamic, flexible global manufacturing footprint as a competitive advantage and a hedge against geopolitical risks. Our U.S. footprint is a key part of that strategy. Coherent has a long industry of advanced manufacturing in the United States, leading U.S. manufacturing innovation since our founding more than 50 years ago, beginning with the company’s first manufacturing site in Saxonburg, Pennsylvania, which remains our company headquarters.

Today, our U.S. manufacturing footprint extends across more than a 8 U.S. manufacturing locates in 13 states. Across those U.S. manufacturing locations, we employ thousands of people. These sites lead the industry in technical innovation, manufacturing, and we continue to invest in our U.S. manufacturing footprint.

Bull/Bear Debate

4:55 pm

We’ve included Coherent in our $500,000 AI Portfolio at 24/7 Wall St. and are positive long-term on the company. So let’s look at this quarter from the bull/bear framework.

Bullish!

Revenue guidance came in light but EPS fro next quarter at the midpoint matched Wall Street’s expectations.
The company is beginning its 1.6T module ramp, which should be a large revenue driver in 2026.
Coherent emphasized gross margin expansion during the year, they’re clearly focusing on their opportunities in the AI space in an outsized way.

Bearish!

The company had run up 121% since April 21st. If a stock runs that fast and issues disappointing guidance, it’s going to fall almost 100% of the time.
While Coherent’s networking business is doing great, its laser business continues to post middling results. The materials business is also seeing significant revenue declines.

Here's What's Next

4:45 pm

Coherent’s conference call starts at 5 p.m., we’ll listen in and post notes.

Shares are currently down 19%.

One interesting note is that guidance excludes $20 million for assets being sold off. You wonder if that revenue was included whether the reaction after hours would have been this severe.

First Revenue from 1.6T Datacom Transceivers Next Quarter

4:36 pm

In their release Coherent highlighted:

First Revenue from 1.6T Datacom Transceivers. Commenced revenue shipments of our 1.6T transceiver products, enabling high-performance AI datacenter applications.

The growth of 800g and 1.6T modules is part of the bull case for Coherent so its encouraging to see revenue beginning to flow from these products. We’d expect more commentary on this during the company’s earnings c

Live: Why DLocal (DLO) Just Soared 20% After Earnings

Joel South — Wed, 13 Aug 2025 18:20:14 -0400

Live Updates

Live Coverage Updates appear automatically as they are published.

Wall Street Q&A

6:10 pm

Here’s our analysis of the Q&A session with Wall Street analysts. We’ll provide a summary of Wall Street questions and management’s answers.

Q&A — what Wall Street asked, and how management answered

1) Why the guidance raise—and is ~50% payment-volume growth sustainable?

Question: What surprised you versus the start of the year, and how broad is the strength?
Answer: Strength is broad-based—Brazil and Mexico recovered, Africa/Asia were strong (Egypt is the exception), and growth is not a single-merchant story; it’s largely the top 20 merchants expanding with dLocal into more countries and more local payment methods. They also see more global merchants moving along the “localization S-curve” (shifting from international acquiring to fully local payment setups).
Why it matters: Supports the view that growth is coming from many levers (more countries, more methods, more categories), not just one hot client or region.

2) Take rate (revenue or gross profit per dollar of volume): up this quarter—what’s the trend from here?

Question: You saw a small improvement—how should we think about the path going forward?
Answer: Long-term, gently down. Merchants keep negotiating prices lower; dLocal pushes its own processor costs lower. Mix can offset this: more “pay-ins,” more frontier markets, and value-added services (like buy-now-pay-later and SmartPix) help. For Q3, they assume a slight decrease vs. Q2.
Why it matters: Keeps expectations realistic: you shouldn’t model steady take-rate increases, but product mix can cushion the decline.

3) Argentina effects—do narrower FX (foreign-exchange) spreads hurt you?

Question: You cited spread compression—how big a drag is it?
Answer: Largely offsets. Narrower spreads reduce fees but also reduce costs; net impact is contained.
Why it matters: Argentina is volatile; investors want to know if earnings are overly sensitive to currency mechanics.

4) Brazil—was Q2 helped by one-offs, and does that reverse?

Question: You mentioned recovering one-off processing costs—does that create a tough comparison?
Answer: Partly a reversal of last quarter’s costs, but not big enough to create a major headwind. Brazil also benefited from more installment payments and is expected to hold momentum into Q3 based on what they see so far.
Why it matters: Eases fears that Brazil’s rebound was just accounting noise.

5) Egypt and retry costs in Chile/Colombia—are these contained?

Question: How should we think about the durability of these headwinds?
Answer: Egypt weakness reflects one large merchant and the devaluation. Chile/Colombia had retry costs that hit this quarter; excluding those, “other LatAm” grew 9%.
Why it matters: Suggests issues are idiosyncratic, not structural.

6) Stablecoins—threat to your business or opportunity?

Question: Many worry stablecoins bypass local processors.
Answer: Management sees a clear opportunity. dLocal is well placed as an on-/off-ramp between local currencies and stablecoins, and that is where much of the margin sits (FX and local liquidity). They already settle in stablecoins for faster cross-border flows and have teams focused on this.
Why it matters: Reframes a perceived risk into a revenue stream aligned with dLocal’s strengths.

7) New product interest—what are merchants actually asking for?

Question: Which launches have the most demand?
Answer: Credit at checkout without merchants taking balance-sheet risk (via buy-now-pay-later partners, revenue-share model); SmartPix to make Pix behave like a saved card; stablecoin services; and, by merchant request, select in-store (POS) solutions through partners.
Why it matters: These raise attachment per merchant and help support take rates.

8) Tariffs and trade policy—where could it bite?

Question: You flagged tariffs as a risk—how would they hit the model?
Answer: Main risk is to cross-border volumes (for example, Mexico’s higher “de minimis” threshold for e-commerce imports). They’ve seen no impact yet; it’s a watch item if tariff “tit-for-tat” escalates or if new digital taxes appear.
Why it matters: Cross-border commerce is a large category for dLocal; demand shocks would flow through volumes first.

9) Operating expenses—have you “turned the corner” on costs?

Question: Costs looked well-controlled this quarter—what about the second half?
Answer: Expect OpEx to rise in 2H: more hiring in product/tech/operations, expansion into new markets and products, and some third-party spend. Even so, the company continues to show operating leverage (profit growing faster than costs).
Why it matters: Keeps margin expectations prudent while acknowledging continued efficiency.

10) Concentration—are results driven by just a few merchants?

Question: How broad is the merchant contribution?
Answer: Growth is not a “single whale”; it’s mainly the top 20. The top 10 are adding new countries and also giving dLocal a bigger share where they were already present.
Why it matters: Lower reliance on any single customer path-de-risks the story.

Conference Call Has Concluded

6:02 pm

Dlocal’s conference call has concluded. Shares are currently up about 20% after hours.

We’ll post our notes from the call shortly.

Conference Call starts in 10 Minutes

4:50 pm

Dlocal’s conference call starts in 10 minutes. If you leave this blog open we’ll listen in and post the most important notes. That update will appear automatically once the call has ended.

Dlocal Shares Now up 16%

4:29 pm

Dlocal ran up 6.6% during the trading day and now shares are up another 16% after-hours.

Investors are clearly very happy with 1.) the company’s revenue figures from last quarter and 2.) the comapny raising guidance for 2025.

More Detailed Summary

4:18 pm

DLO | dLocal Q2’25 Earnings Highlights:

Adj. EPS: $0.14 []; [DOWN] -7% YoY
Revenue: $256.5M []; [UP] +50% YoY
Adj. Gross Margin: 39% []; [DOWN] -200 bps YoY
Net Income: $42.8M []; [DOWN] -7% YoY
Free Cash Flow: $48.4M; [UP] +156% YoY

Outlook:

TPV: 40%-50% YoY
Revenue: 30%-40% YoY
Gross profit: 27.5%-37.5% YoY
Adjusted EBITDA: 40%-50% YoY

- Upward adjustment on our full-year 2025 guidance for TPV, Revenue, Gross Profit and Adjusted EBITDA.
- While we remain optimistic, we encourage careful consideration of the outlined risks including macroeconomic factors and potential currency devaluations.

Other Key Q2 Metrics:

Adj. Operating Income: $55.8M (Est. $X.XB) []; [UP] +85% YoY
Effective Tax Rate: 16% (vs. 10% YoY)
Cash and Cash Equivalents: $476.9M; [DOWN] -7% YoY

CEO Commentary:

Pedro Arnt: “We are pleased to report another quarter of solid growth and disciplined execution, with significant acceleration across our key financial metrics. These results are a testament to our high-growth, expanding margin, and healthy free cash flow business model, and they demonstrate the substantial value we provide to our merchants.”

The Numbers...

4:08 pm

Revenue: $256.5 million (expectations were $229.66 million)
EPS (Normalized): $0.14 (expectations were $.13)

Earnings Are Out

4:07 pm

Massive beat, shares are surging 14%.

It's Almost Time

3:46 pm

We’re fast approaching the closing bell, and DLocal will report shortly after. Here are a few notes:

You don’t need to refresh this live blog to receive updates. They should post automatically.
We expect DLocal to report shortly after the bell, with earnings hitting at about 4:05 p.m. ET.
We will post 5 to 10 updates with share price reaction, highlights from earnings, and more. Once again, you can receive these updates in one central place simply by leaving this live blog open.

Wall Street Analyst Targets

3:05 pm

Consensus Rating:

9 analysts total
6 Hold | 2 Buy | 1 Strong Buy
Net rating: Hold

Price Targets:

Average Price Target: $12.79
High: $

Ukraine meeting as it happened: Trump pursuing Ukraine ceasefire and not land swap, Europeans say

Wed, 13 Aug 2025 18:14:40 -0400

Leaders hold talks with US and Ukraine presidents ahead of Alaska summit with Putin

Behind Wall Street’s Abrupt Flip on Crypto

Rob Copeland — Wed, 13 Aug 2025 18:12:04 -0400

The reversal risks declawing a century of consumer financial protections and replacing the backbone of bank accounts.

Live: Cisco (CSCO) Drops And Then Rebounds After Q4 Earnings

Joel South — Wed, 13 Aug 2025 17:59:57 -0400

Live Updates

Live Coverage Updates appear automatically as they are published.

Cisco is in the Green

5:55 pm

Cisco was trading at -3% after its initial earnings release; however, it’s now slightly positive. As of 5:55 p.m. ET, shares are up .5%.

What caused the turnaround?

Most the gains happened between 5:00 and 5:10 p.m. ET., It’s hard to pinpoint exactly what was said, but that was about the time that Cisco ended its prepared remarks and moved to analyst questions.

Initial analyst questions largely focused around Cisco’s AI opportunity. We’ll continue digging in to understand why this turnaround happened, but it is a very large change in reaction after the initial earnings release.

What Was Wall Street Pushing On in Cisco's Call?

5:50 pm

Here’s our summary what Wall Street was asking about during Cisco’s call:

What analysts pressed on (Q&A themes)

Growth cadence vs guide: Why FY26 growth moderates despite AI tailwinds? Mgmt: mostly year-over-year comps, not a demand change; campus refresh ramps through FY26.
AI orders → revenue timing & mix: ~$1B AI revenue recognized in FY25; web-scale AI order mix ~⅔ systems / ~⅓ optics; mix seen stable. Enterprise AI “few hundred million” orders so far; pipeline “hundreds of millions”; POCs for agentic AI expected to proliferate 2H FY26.
Pull-forward risk (tariffs/Fed): Mgmt cites no evidence (normal linearity, activation timing, ship-date requests, channel feedback).
Security trajectory vs long-term 15–17% (Security+Observability): New/refresh portfolio >20% order growth; ex-Fed double-digit growth; expect improving growth through FY26; don’t change the long-term target.
Segment confidence ranking for FY26: 1) Service Provider/Cloud, 2) Enterprise, 3) Public Sector (U.S. Federal expected to return to growth but below FY25).
Silicon & architecture roadmap: Silicon One share in switches expected to rise quickly (half of switch ASICs in ~3 years “not too far off”). Long-term Ethernet-based scale-up possible; Cisco building roadmaps.
Meraki–Catalyst integration: Should expand openness to Catalyst via cloud management (now ~35M devices cloud-managed).
Services decel: Flat this quarter after prior growth; expected to re-accelerate as product growth flows into ratable services.

Cisco's Call Is Over

5:38 pm

Cisco’s earnings call is over, we’re compiling our notes and will post some areas we think are the most important for investors shortly.

AI In Focus on Cisco's Earnings Call

5:08 pm

We’re on Cisco’s earnings call right now, and one area of focus is their disclosures around AI.

We highlighted earlier how the company disclosed greater than $2 billion in AI orders, but the word to watch there is orders. Wall Street wants to know how that translates into actual revenue.

Here’s the key exchange to watch on the company’s call:

Michael Ng Goldman Sachs Group, Inc., Research Division

I just have 2 as well. First on AI, I was wondering if you could talk about the greater than $2 billion AI orders this year. Did that translate into revenue in the year? And how should we think about that translating into revenue for next — and then second, just on networking. I was wondering if you could talk a little bit about the orders in the quarter by subsegment, campus and data center switching, wireless, routing, and any kind of notable inflections that you would call out in any of those product categories?

Charles Robbins Chief Executive Officer

Sure, Michael. Let me take some comments first on the — I want to just give a clarity on the web scale business and what it looked like, and then Mark can talk about the revenue in FY ’25 related to their AI infrastructure orders. So I just want to make sure everybody understands our webscale business. First of all, we sell technology into the back end. We sell technology into the front end or the traditional cloud networks, and we sell our enterprise portfolio to these customers as well. And if you look at our entire portfolio, these customers in aggregate grew triple digits 4 quarters in a row from an orders perspective. . We had 4 of them that grew triple digit in Q4 by themselves. And as I said in my prepared remarks, we had 2 of these customers across the portfolio that placed orders in excess of $1 billion each in fiscal year ’25. So — if you think back 5 years ago, when we were talking about our strategy in this space, this was definitely not the case. So we feel good about the progress we made. And then I think you understood on the AI infrastructure, we had greater than $800 million in orders during the quarter and we have greater than $2 billion on the year, more than double our original target. Mark, do you want to talk a little bit about the revenue?

Mark Patterson Chief Financial Officer

Sure. Yes. In terms of revenue and shipments related to those AI orders, those really just progressed and ramped like we expected during FY ’25. So for the full year, we recognized right about $1 billion in revenue related to those.

Charles Robbins Chief Executive Officer

So we recognize roughly $1 billion of revenue on the AI back-end orders that we’ve taken from the web scale customers during fiscal year ’25. .

Earnings Call Is Happening Now

4:47 pm

Cisco’s earnings call started at 4:30 ET, we’ll post notes on this live blog.

Cisco on AI

4:31 pm

“AI Infrastructure orders taken from webscale customers exceeded $800 million, bringing the FY 2025 total to over $2 billion, more than double the original $1 billion target.”

Expect far more discussion on this during the company’s conference call, but definitely a bright spot for the quarter.

Shares Down 2.7%

4:20 pm

As of 4:20 p.m. ET, shares are down 2.7%.

As we noted earlier, full-year guidance for next Fiscal Year’s revenue is likely weighing on shares.

Guidance

4:12 pm

Here’s the guidance sections from Cisco’s press release.

Here’s what’s important. Guidance for next quarter is above expectations on the revenue side but looks lighter on GAAP EPS.

Guidance

Cisco estimates the following results for the first quarter of fiscal 2026:

Q1 FY 2026
Revenue		$14.65 billion – $14.85 billion
Non-GAAP gross margin		67.5% – 68.5%
Non-GAAP operating margin		33% – 34%
Non-GAAP EPS		$0.97 – $0.99

Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.

Cisco estimates that GAAP EPS will be $0.63 to $0.68 for the first quarter of fiscal 2026. Fiscal 2026 revenue midpoint is slightly below Wall Street expectations of $59.55 billion.

That’s likely what’s dragging the stock lower after hours.

Cisco estimates the following results for fiscal 2026:

FY 2026
Revenue		$59.0 billion – $60.0 billion
Non-GAAP EPS		$4.00 – $4.06

Margin and EPS guidance includes the estimated impact of tariffs based on current trade policy.

Cisco estimates that GAAP EPS will be $2.79 to $2.91 for fiscal 2026.

Our Q1 FY 2026 and FY 2026 guidance assumes an effective tax provision rate of approximately 18% for GAAP and approximately 19% for non-GAAP results.

Detailed Summary of Q4

4:10 pm

CISCO | Cisco Systems Q4’25 Earnings Highlights:

Adj. EPS: $0.99 []
Revenue: $14.7B (Est. $14.7B) []
Comparable Sales:
Adj. Gross Margin: 68.4% []
Net Income: $2.8B [
Operating Income: $3.4B []
Operating Cash Flow: $4.2B

Outlook:

Revenue: $14.65B – $14.85B []
- Guidance reflects continued strong demand across all geographies.
- Expectations for AI infrastructure orders to remain robust, contributing to growth.

Q4 Segment Performance:

Americas Revenue: $8.8B (Est. $8.8B) []; [UP] +9% YoY
EMEA Revenue: $3.6B (Est. $3.6B) []; [UP] +4% YoY
APJC Revenue: $2.2B (Est. $2.2B) []; [UP] +7% YoY
Product Revenue: $10.9B (Est. $10.9B) []; [UP] +10% YoY
Services Revenue: $3.8B (Est. $3.8B) []; [FLAT] 0% YoY

Other Key Q4 Metrics:

Adj. Operating Income: $5.0B (Est. $5.0B) []; [UP] +13% YoY
Adj. Operating Expenses: $5.0B (Est. $5.0B) []; [UP] +4% YoY
R&D Expenses: $2.4B; [UP] +9% YoY
Effective Tax Rate: 15.8% (vs. 9.8% YoY)
Free Cash Flow: $14.2B; [UP] +30% YoY
Remaining Performance Obligations: $43.5B; [UP] +6% YoY
Deferred Revenue: $28.8B; [UP] +1% YoY

CEO Commentary:

Chuck Robbi

ULTY Will Thrive in Today’s Market

John Seetoo — Wed, 13 Aug 2025 17:52:07 -0400

Key Points

The market price of ULTY has fallen significantly from February to August by over 25%, and nearly 70% from its high, which has caused some analysts to downgrade it to a “hold”.

The high 86% distribution yield is paid out weekly, making it extremely popular with many investors with high risk tolerance.

There is a significant return of capital component to ULTY, but there is also a free ride aspect to it for shareholders down the road, along with a tax reduction.

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 – learn more here.(Sponsor)

“No Guts, No Glory” – Major General Frederick Corbin Blesse, USAF

The YieldMax Ultra Option Income Strategy ETF has been likened to “an ETF for gamblers” due to its combination of high dividends and high risk of capital erosion.

The YieldMax Ultra Option Income Strategy ETF (NYSEATCA: ULTY) has captured the attention of many investors who have no qualms about rolling the dice and maintaining a high appetite for risk. With weekly dividends from a covered call collar option strategy featuring a portfolio of highly volatile stocks, ULTY has built a larger coterie of fans even as the stock price has continued to fall since its inception at $20 in February, 2024.

The pessimists and naysayers think that ULTY is a gimmick and that the 86% distribution yield will eventually dry up and the ETF will inevitably go belly-up. Analysts have recently reduced their ratings on ULTY to a “hold”. Those investors think that ULTY is only a good investment “while it lasts”, and anticipate the end is in sight. Nevertheless, the stalwart investors are sticking to their guns and some are even dollar-cost averaging and adding more shares in the $6 region, perceiving it as a bottom-fishing opportunity. So, is ULTY a gravy train heading for a brick wall, or is it an innovative approach to using Wall Street trading tools for the benefit of investors? A ULTY investor posted a question on Reddit asking for opinions from both camps.

What Makes ULTY Different?

ULTY differs from other YieldMax ETFs that are pegged to a specific stock, since it has a portfolio of up to 100 stocks from which 30 at any time may have active derivative call and put positions.

YieldMax has become a huge proponent of developing a catalog of covered call ETFs that can generate impressively large dividends through both direct and synthetic option derivatives. Some of the more popular YieldMax ETFs include MSTY, its ETF for MicroStrategy, and NVDY, its ETF for Nvidia. Those ETFs track their respective stocks and proportionately rise and fall within a ratio to the actual stock. There is slightly less volatility in the ETF due to the option strategy, which generates the dividend income, but also places a cap on the upside potential capacity. YieldMax does include a disclaimer that a portion of original capital may be returned as part of the dividend, which is understandable, especially when the market volatility calms down.

With ULTY, YieldMax essentially takes their ETF model and puts it on steroids. It carries a portfolio of highly volatile stocks and replicates the strategy for each one, thus amplifying the potential returns, while commensurately doing likewise with risk. At the time of this writing, the top largest holdings in the ULTY portfolio contain the following:

Reddit, Inc.: 5.13%

Upstart Holdings: 4.81%

MicroStrategy Inc.: 4.64%

NBIS: 4.60%

Nuscale Power: 4.47%

The Beta among these top five (5) stocks ranges up to 3.78, to give an illustration of the inherent volatility in the ULTY portfolio. By comparison, the average S&P 500 stock has a Beta of slightly under 1.0. The greater the volatility, the fatter the covered call premiums, and thus, the greater the dividend size. This is how ULTY is able to generate such high distribution payouts each week.

Rationales For the Bearish Sentiment

ULTY Bears cite the stock price drop from its $20 inception price in February 2024 to $6 at the time of this writing as one of their justifications.

The Bears have a strong case for their stance, the steep price drop from $20 to $6 notwithstanding:

The Option Income Strategy: ULTY uses a covered call and put strategy. It sells options on underlying securities in the portfolio to generate income. While this can provide steady payouts, it caps potential upside gains and exposes investors to full downside risk if the underlying assets decline.

SEC Yield is 0.00%: ULTY’s impressive double digit weekly distribution rate is its allure, but its 30-Day SEC Yield, which is the measure of income excluding option gains—has hovered close to 0.00% since November, 2024. This means that the fund’s actual income from investments is close to nil, and the distributions depend on Return Of Capital (ROC) and option strategies. Such reliance raises warning signs about sustainability, particularly during a bear market.

Yield vs. Capital at Risk: Investors must weigh ULTY’s high distribution yield against the prospect of principal loss. The structure of ULTY effectively amounts to a wager on two things: 1) whether or not market stability will sufficiently prevent NAV erosion from falling holdings; and 2) whether or not market volatility in the underlying portfolio stocks can generate enough option premium income to offset losses and continue making distributions.

Why the Bulls Remain Firm

ULTY Bulls remain steadfast, and at a $6 market price, are buying more and see it as a dollar cost averaging opportunity.

The Bulls seem undeterred about the stock price fall and have remained invested un ULTY, with many adding to the positions in a dollar-cost averaging strategy, justifying those steps with the following reasons:

Hedge Fund Model: ULTY’s actual methodology does not differ appreciably from strategies used by a number of hedge funds that have successfully been in operation for decades. The aggressive option strategies for an entire portfolio that YieldMax deploys for ULTY are unique for ETFs, but are not unknown in other parts of the investment and fund management industry.

Portfolio Flexibility: Unlike with MSTY, ULTY is not tied to a single underlying stock that it tracks. At any given time, ULTY’s portfolio can sell, add, or swap for other stocks that may begin to exhibit the desired level of volatility to make meaningful contributions to the portfolio and to shareholders.

Operational Discretion: ULTY fund managers are not tied to an autopilot protocol of option writing, as is the case with a single-stock ETF like NVDY. On average, about 30 stocks may have either direct or synthetic option combined short and long positions, but managers have the discretion to reduce exposure to as few as five or expand beyond 30, if opportunities warrant.

Offsets Have Held: As noted in a Seeking Alpha analysis, the distributions have offset losses by 97% as of mid-July, so long-term shareholders are still basically whole, and the offsets have worked despite the steep NAV drop.

A $6 Free-Ride?: The high weekly income from ULTY is such that an investor at $6 per share can effectively recover 100% of their invested capital value in dividends within 12-18 months, as long as the market avoids a bearish downturn. At that point, ULTY would be generating income that is all gravy, and if it can sustain itself, the investor will continue to earn profits. If it goes under, the investor still suffers no loss.

Tax-Savings: In the event that ULTY is able to generate sufficient dividends for an investor to recoup 100% invested capital, there is an added bonus: all subsequent distributions would be taxed at a lower capital gains rate, as opposed to being taxed as income.

Clearly, ULTY is fraught with risk, but its current price and overall structure make it a reasonably even-odds gamble. It certainly should not be the sole investment of one’s portfolio, but the income boost can definitely add fuel to a DRIP (Dividend Reinvestment Plan) program for wealth building and buying others stocks for long-term growth. It’s a speculative risk that one can take with a small portion of an overall portfolio, but as General Blesse was quoted: “No Guts, No Glory.”

The post ULTY Will Thrive in Today’s Market appeared first on 24/7 Wall St..