money Archives - Page 26 of 129

MONEY

Is O’Reilly Auto Parts Stock a Buy?

Long-term shareholders in this business have been rewarded.

O’Reilly Automotive (ORLY 1.07%) operates brick-and-mortar locations that sell various products to DIY and professional customers. This includes things like brakes, batteries, and motor oil. It’s not an exciting business, but investors should have zero complaints.

In the past five years, this retail stock is up 242% (as of Sept. 23), crushing the broader market. But is O’Reilly a smart buy right now?

A customer holding and looking at a container of motor oil in auto parts store.

Image source: Getty Images.

Consider the valuation

This company has clearly made for a terrific investment. But investors should think twice before buying shares. That’s because the valuation looks rich.

The stock trades at a price-to-earnings ratio of 36.9. This is close to the most expensive that shares have sold for in the past two decades. And the ratio has climbed 65% during the past five years, which means it has contributed to investor returns.

Paying too high of a starting valuation for a company can lead to subpar performance going forward.

O’Reilly is a great business

The stock’s expensive valuation indicates investors’ appreciation for this business. And that perspective is totally justified.

O’Reilly has an impressive history of growing its revenue and earnings. And this year is on track to be the company’s 33rd straight year of reporting a same-store sales gain. O’Reilly also registers durable demand regardless of economic conditions.

Because of the valuation, investors shouldn’t buy shares today. However, it’s best to continue keeping a close eye on this business, waiting for a pullback before making a move.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Source link

MONEY

Downsizing in Retirement? 3 Drawbacks to Consider

Sep 26, 2025 Finance Desk

While you might save a bundle, there are some pitfalls to think about, too.

There are certain expenses in retirement you really can’t control. You need healthcare, for example. So if the cost of Medicare goes up, you may have no choice but to pay.

Housing, on the other hand, is an expense you can control to some degree. If you raised your family in a larger home and are now retired, you may not need the same amount of square footage you once did.

Image source: Getty Images.

Downsizing could help you lower your housing costs to a large degree. That could allow you to better stretch your savings and Social Security benefits.

Plus, once you’re retired, you may not have the energy for home maintenance you once did. A smaller home could be a lot less work to deal with.

But while downsizing in retirement definitely has its perks, there are some potential drawbacks you need to know about, too. Here are three to keep on your radar.

1. Unexpected costs

You may be in a position where you can sell your home for enough money to buy a smaller one mortgage-free. Given that mortgage rates are up these days, that’s a good thing.

But you may encounter a world of expenses in the course of selling your home, forcing you to dip into your savings. These could include:

Real estate agent fees
Home staging fees
Cosmetic repairs to make your home more appealing
Moving costs

Before you downsize, run the numbers to see what it will cost you, and if the savings you expect to get out of a smaller home will be worth it.

2. A disruption to your social life

If you’ve lived in the same neighborhood for many years, you may have developed a nice social circle nearby. If you’re forced to move to a different neighborhood in the course of downsizing, it could impact your social life in a negative way.

This isn’t to say that you won’t make new friends where you move, or that it won’t be possible to drive a little further to spend time with your old crowd. But remember, as you get older, nighttime driving can become more difficult.

It’s one thing to meet friends for dinner who live six blocks away. It’s another to have to drive 25 minutes on highways at night when your vision isn’t what it used to be.

3. New gotchas

When you spend many years in a house, you get used to its quirks. You know how to wiggle the fence gate open when it seems stuck, you’re familiar with the clang of the heating system kicking on, and you’re aware that any food you stick in the back corner of the fridge is going to turn to ice.

When you move to a new home, you don’t know its ins and outs. And even if there’s nothing majorly wrong with the home, getting used to those new “gotchas” may not be something you enjoy later in life.

Think carefully before you downsize

Downsizing in retirement could make your life easier from a financial perspective. If you’re tired of raiding your IRA every quarter to pay a large property tax bill, and your utility bill makes you want to shudder, then it’s worth looking into a smaller home.

But be aware that downsizing also comes with serious drawbacks. You’ll need to make sure you’re prepared for them before moving forward. And if you have enough money in your IRA or 401(k) to stay where you are, it may end up being worth it.

Source link

MONEY

Here’s How Much a $20,000 Investment in the S&P 500 Could Be Worth in 20 Years

Sep 26, 2025 Finance Desk

Tracking the S&P 500 is one of the simplest and most popular ways to profit from the stock market’s long-term growth.

If you want to invest in the stock market with little time and effort, a good strategy can be to simply “buy” the S&P 500 (^GSPC -0.50%). This benchmark index includes 500 of the biggest U.S. companies, and it’s a popular choice for many investors.

While you cannot invest in the S&P 500 directly, index funds that track its performance are widely available. Below, I’ll look at what kind of returns the index has historically averaged and how it has performed recently to build out a forecast of what a $20,000 investment in the S&P 500 might be worth after 20 years.

An advisor showing a tablet to a couple.

Image source: Getty Images.

The S&P 500 boasts a 10% annual return, but can that continue?

If you look at nearly a century of historical data, the S&P 500 has enjoyed an annualized growth rate of about 10% (including dividends). For 2025, it’s up 14% as of this writing, and that’s with the index already coming off strong years when its total return was more than 25% in both 2023 and 2024. The index has effectively been punching well above its weight for a while, which is why some analysts and investors worry the market may be in a bubble, and a slowdown may be coming.

For that reason, it’s important to brace for lower, more modest gains in the future. New investors may have become accustomed to these elevated returns, but the reality is there have been no shortage of years when the index’s returns have been in the single digits or even negative.

The good news is that regardless of what happens in any single year, over the long term, the S&P 500 is likely to rise in value. That’s why tracking it with an exchange-traded fund (ETF) such as the SPDR S&P 500 ETF (SPY -0.49%) can be a winning strategy.

What could a $20,000 investment in the S&P 500 be worth in the future?

I’m not going to try to predict the exact rate of return the S&P 500 will deliver over the next two decades. But I can show you what a $20,000 investment in the SPDR ETF may be worth at various points over the next 20 years based on a range of growth rates.

Year	8% Growth	9% Growth	10% Growth	11% Growth	12% Growth
5	$29,387	$30,772	$32,210	$33,701	$35,247
10	$43,178	$47,347	$51,875	$56,788	$62,117
15	$63,443	$72,850	$83,545	$95,692	$109,471
20	$93,219	$112,088	$134,550	$161,246	$192,926

Data source: Clculations by author.

Even at 8%, the value of your position can more than quadruple after 20 years to about $93,000. And you shouldn’t expect 11% or 12% annualized returns going forward, especially given the S&P 500’s hot streak in recent years. However, I included those bullish growth rates to illustrate how significant the gap in the final investment value can be, even when the difference is only a few percentage points.

This highlights why it’s important to go with a low-cost fund such as the SPDR S&P 500 ETF, where the expense ratio is only 0.09%. It’s crucial to keep those fees as low as possible so you can maximize your returns.

David Jagielski has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Source link

MONEY

This Artificial Intelligence (AI) Giant Could Increase Its $10 Billion Business 14-Fold in 5 Years

Sep 26, 2025 Finance Desk

But it doesn’t come without some significant risks for investors.

Global spending on artificial intelligence (AI) is set to reach $1.5 trillion this year, according to estimates from Gartner. Even with the huge amount businesses and tech companies are already spending, that number is forecast to climb even further well into the future. The analysts at Gartner expect total spending to hit $2 trillion in 2026. Many analysts see total spending climbing through the end of the decade in order to take advantage of the massive opportunity and promises of generative AI.

One company managed to build a massive $10 billion business out of demand for artificial intelligence compute in just a few years, and it expects to capture a significant amount of market share over the next few years. In fact, management said it expects that $10 billion in annual sales to grow to $144 billion in sales within five years. And it has the contracts to back it up.

A man holding a laptop standing in front of a line of data center server racks.

Image source: Getty Images.

The massive opportunity ahead

A handful of companies are rapidly building out data centers and leasing space and equipment in order to meet the demand of tech companies training and using large language models. Some contracts from companies like OpenAI and Anthropic, two leading LLM developers, are worth tens of billions of dollars per year. And the biggest cloud computing platforms — owned by Amazon (AMZN -0.84%), Microsoft (MSFT -0.64%), and Alphabet (GOOG -0.53%) (GOOGL -0.56%) — are unable to keep up with the growing demand.

As AI companies look to diversify their compute providers, Oracle (ORCL -5.55%) has emerged as a strong alternative with excellent networking capabilities and competitive pricing. However, its Oracle Cloud Infrastructure (OCI) is lacking in scale relative to the three market leaders. That didn’t stop OpenAI from committing $300 billion to Oracle’s cloud business over five years starting in 2027.

As a result, Oracle reported a huge increase in its backlog of remaining performance obligations. The amount stood at $455 billion as of the end of the company’s first quarter, up from $137 billion at the end of the fourth quarter. While $300 billion of that is tied to OpenAI, Oracle added another $18 billion in contracts on top of that.

And management expects to sign additional contracts in the near future. It said OCI’s remaining performance obligations will likely exceed $500 billion by the end of the current quarter.

If management succeeds in growing OCI from $10 billion to $144 billion over the next five years, it’ll end the decade with a cloud business similar in size to Alphabet’s, based on current growth rates. If it can manage to earn similar operating margins as the three big providers today (20% to 37%), it could produce a huge boost to its existing earnings.

While management notes it already has the backlog to support its revenue outlook, it’s important to consider the significant risks that come with investing in Oracle stock right now.

The future is not guaranteed

Oracle burned $5.9 billion in cash over the past 12 months as it expanded OCI capacity. It took on $27 billion worth of debt over the past year, and it now holds $111 billion of debt on its balance sheet. It’ll have to take on more debt and burn more cash to build out the capacity needed to meet demand for its cloud computing business.

To put things in perspective, Microsoft is committing to $30 billion in capital expenditures for the current quarter, and it’ll likely maintain that pace throughout the year. Amazon expects to spend over $100 billion in 2025, mostly on additional compute capacity. Alphabet updated its target spend to $85 billion for the year, as demand for its cloud infrastructure continues to outstrip supply.

They all have significant backlogs, but none is as big as Oracle’s is now. Oracle plans to spend $35 billion this year, with OCI revenue of $18 billion.

Meanwhile, its three biggest competitors are producing strong positive free cash flow thanks to the fact that they already have large, established cloud businesses and massive businesses outside of cloud computing. Oracle’s legacy software business doesn’t generate nearly enough cash to keep up with the demand for AI compute.

But it’s not just the financing risk Oracle faces. It also takes on the risk of a long-term contract with OpenAI. The generative AI leader has committed to spending $30 billion on Oracle’s compute starting in 2027 and ramping up from there. But the company itself is only bringing in $13 billion in revenue this year, according to its CFO’s outlook. It’s also committed to spending $10 billion with Broadcom, not to mention its existing cloud computing deals with Microsoft and Alphabet.

It’s also unclear how profitable the OpenAI deal will be if it comes to full fruition. Oracle must have offered very attractive pricing relative to its larger competitors to attract such a big commitment. That could result in a significantly worse margin profile relative to Amazon, Microsoft, and Alphabet.

Nonetheless, shares of Oracle have now skyrocketed in price, reaching a forward PE ratio of 45 based on estimates for fiscal 2026. That’s far higher than its larger cloud competitors, making the stock a much riskier investment. If Oracle can execute, build the capacity it needs, and OpenAI holds up its end of the deal, it could be a huge winner over the next five years. But the other three cloud computing providers’ stocks look like much better values with much less risk right now.

Adam Levy has positions in Alphabet, Amazon, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, Microsoft, and Oracle. The Motley Fool recommends Broadcom and Gartner and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

Source link

MONEY

Is Rivian Stock Your Ticket to Becoming a Millionaire?

Sep 26, 2025 Finance Desk

Rivian looks increasingly like it will be a successful EV start-up, but don’t get overexcited by the Tesla similarities.

After Tesla (TSLA -4.29%) proved that a start-up electric car company could take on the traditional automakers, Wall Street jumped into action. That was when Rivian (RIVN -0.44%) came public, to much fanfare. Fast forward a few years to the current day, and Rivian’s stock price has fallen some 90% from its all-time highs. Is this a diamond in the rough that could turn you into a millionaire in a Tesla-style success story, or should you have more modest expectations?

Rivian has done big things

To give credit where credit is due, Rivian has achieved a huge amount of success in a very short period of time. It basically went from an idea — making electric vehicles (EVs) — to an operating business with a well-respected EV truck and an EV delivery van used widely by retail powerhouse Amazon (AMZN -0.84%). That isn’t something that could have been achieved if Rivian didn’t have its act together.

A line of Rivian trucks in a parking lot.

Image source: Rivian.

Notably, in late 2024, Rivian hit a key milestone, achieving a modest gross profit for the first time. While a gross profit only means that it was able to generate more revenue from selling its vehicles than it cost to produce them, that is a key step toward positive earnings.

The modest gross profit came after Rivian hit another important goal, scaled production. It delivered more than 10,000 vehicles in the second quarter of 2025, which is a substantial number. It also has a new truck called the R2 coming out next year, which will be geared to the mass market. That should help to further increase volume, which will allow Rivian to spread its costs over even more vehicles.

In many ways, Rivian is following in Tesla’s footsteps. Given the massive stock price advance Tesla has made over its history, some investors might see Rivian as a second chance to catch a little of the Tesla opportunity they might have missed. Don’t get overly excited.

Rivian has a long way to go

With a well-respected product and key partners like tech giant Amazon and automaker Volkswagen (which has agreed to provide fresh capital to Rivian based on Rivian’s ability to meet certain business goals), Rivian seems like it will establish itself as a sustainably profitable business. However, this goal is still likely to be at least a few years away, given the need to invest in the business and research and development right now. Rivian could help you reach a seven-figure net worth, but it isn’t likely to do so quickly.

Moreover, the competition set today is much larger than it was when Tesla entered the auto market. At the time, Tesla was basically the only company making EVs. Today, there are a number of sizable EV makers. Virtually all of the traditional automakers are in the space, too. Even if Rivian is successful, it could still just produce a modest profit at the bottom of its income statement, thanks to the changed competitive landscape.

That said, even that outcome would require strong execution. Although Rivian has lived up to its goals, for the most part, so far, there’s no guarantee that it will continue to do so in the future. If the company starts missing its targets, investors are likely to turn deeply negative on the stock.

How much more negative could they get after a 90% price decline? Well, the stock happens to be up nearly 23% over the past year, which is notably better than the nearly 17% gain of the S&P 500 index (^GSPC -0.50%). Even after a 90%+ decline, there’s still ample room for a deep drawdown, as investors appear to have priced in a lot of good news in recent days.

Risk takers may find it attractive

It probably wouldn’t be a great idea to bet your house on Rivian. But it has achieved a great deal in a short period of time, with material opportunity for more success in the future. The problem is that it could also fall short of its goals and flame out, like many upstart EV makers have already done. If you see the execution strength and want to add Rivian to a diversified portfolio, it could help you reach millionaire status. Just go in recognizing the risk, which is material, and the time period you need to consider, which is long.

That’s why more conservative investors will probably want to sit on the sidelines for now. It makes a great deal of sense to wait at least until the R2 has been brought to market, so investors can assess how well the new car does with consumers.

Reuben Gregg Brewer has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Amazon and Tesla. The Motley Fool recommends Volkswagen Ag. The Motley Fool has a disclosure policy.

Source link

MONEY

Why Stitch Fix Stock Was Plummeting This Week

Sep 26, 2025 Finance Desk

The specialized fashion retailer didn’t quite end its fiscal 2025 on a high note.

Stitch Fix (SFIX -17.02%) stock was more or less humming merrily along at the start of this week, until it fell into a ditch Thursday morning. That gaping hole was the company’s latest set of quarterly earnings, which despite looking outwardly impressive had several areas of concern.

As a result, on a week-to-date basis the fashion stock was down notably in price Thursday night. According to data compiled by S&P Global Market Intelligence, the company’s equity had lost almost 17% of its value in those days.

Stitched up

After market close Wednesday, Stitch Fix took the wraps off its fiscal fourth quarter of 2025. When adjusted for an extra week in the same period of 2024, the company’s net revenue rose by 4% year over year to slightly over $311 million. The GAAP net loss narrowed considerably, to under $8.6 million, or $0.07 per share, against the year-ago deficit of more than $36 million.

Person shopping for clothes in a retail store.

Image source: Getty Images.

Both headline figures beat the consensus analyst estimates. Pundits tracking Stitch Fix stock were modeling less than $305 million on the top line, and a net loss per share of $0.10.

Improvements and beats in those two important metrics would, all things being equal, inspire investors to push into any stock. Stitch Fix is different, however, as those achievements masked one particular concerning development.

Not getting a Fix

Stitch Fix is anchored by its Fix service, in which customers can subscribe to either occasional or regular deliveries of clothes picked by the company’s stylists, paying for the ones he or she elects to keep. So the service’s subscriber numbers are crucial — if they’re not rising, the company’s growth will likely not be robust.

And they’re not rising. Stitch Fix revealed that its count of active clients — defined as those who checked out a Fix or bought an item through the company’s Freestyle marketplace — was slightly more than 2.3 million for the quarter. That meant a worrying decrease pf nearly 8% year over year.

Source link

MONEY

Why Nano Nuclear Energy Stock Was Sliding This Week

Sep 26, 2025 Finance Desk

Companies usually see a bump in their share price when included on a stock index. That didn’t happen this time.

According to data compiled by S&P Global Market Intelligence, Nano Nuclear Energy‘s (NNE -2.79%) share price had eroded by almost 11% week to date as of Thursday night. This, despite the fact that the company was included on several stock indexes managed by a well-known indexer.

Come and join

Before market open that day, Nano announced that its stock is now a component of not one, not two, but three equity indexes managed by S&P Dow Jones Indices. The trio is the S&P Global Broad Market index (BMI), the S&P Total Market index (TMI), and the SPX Completion index.

A nuclear power plant photographed in the daytime.

Image source: Getty Images.

These, however, are not as closely tracked and have less prominence than other equity gauges in the S&P family (most notably the S&P 500 index).

At least Nano has plenty of company. In terms of composition, the BMI is certainly sprawling. As of the end of August, it has 14,782 component stocks, which are collectively headquartered in 48 countries around the globe.

The other indexes are notably smaller, at 3,360 for S&P Completion and 3,865 for TMI. The two are related — S&P Completion has the same composition as TMI, except with the stocks also on the S&P 500 index stripped out.

The good old index effect

Nano’s ascensions definitely represent an advancement for the next-generation nuclear company. However, many investors might be thinking they aren’t enough of an advancement, since in prestige and visibility terms, the trio is under the level of closely monitored mainstays, again like the S&P 500 index.

Nevertheless, if it hasn’t already been discovered and researched simply by its presence in the currently hot nuclear sector, Nano will soon go under the microscope by a host of index funds. After all, such vehicles are constantly on the hunt for good investments among a relatively limited pool of stocks.

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Source link

MONEY

Stock Market Today: Wall Street Extends Slide as Inflation Gauge Nears

Sep 26, 2025 Finance Desk

Wall Street drifted lower Thursday, with traders balancing economic resilience against softer hiring ahead of a closely watched inflation report.

Data by YCharts.

The S&P 500 (^GSPC -0.50%) fell 0.5% to 6,604.72, while the Nasdaq Composite (^IXIC -0.50%) declined 0.5% to 22,384.70. The Dow Jones Industrial Average (^DJI -0.38%) slipped 0.4% to 45,947.32. It was the third straight session of losses, with yields hovering near recent highs and traders reluctant to add risk ahead of key inflation data.

Attention is turning to Friday’s release of the Personal Consumption Expenditures (PCE) price index, considered the Fed’s preferred measure of inflation. The reading will help determine whether policymakers maintain a cautious stance on rate cuts after Chair Jerome Powell recently emphasized patience.

Economic signals added to the mixed picture. Jobless claims fell this past week, but hiring remains muted, pointing to a labor market losing steam. At the same time, second-quarter GDP was revised higher, underscoring resilience in growth despite tighter financial conditions.

On the corporate front, Intel (INTC 8.82%) rose 8.9% on reports of investment talks with Apple, while IBM (IBM 5.31%) gained 5.2% on results from a quantum computing trial with HSBC. CarMax (KMX -19.96%) tumbled 20% after missing earnings expectations and warning on weak sales trends.

Market data sourced from Google Finance on Thursday, Sept. 25, 2025.

HSBC Holdings is an advertising partner of Motley Fool Money. Daily Stock News has no position in any of the stocks mentioned. This article was generated with GPT-5, OpenAI’s large-scale language generation model and has been reviewed by The Motley Fool’s AI quality control systems. The Motley Fool has positions in and recommends Apple, CarMax, Intel, International Business Machines, and Nvidia. The Motley Fool recommends HSBC Holdings and recommends the following options: short November 2025 $21 puts on Intel. The Motley Fool has a disclosure policy.

Source link

MONEY

First Solar: A Closer Look at Its Market Position and Future Prospects

Sep 26, 2025 Finance Desk

Explore the exciting world of First Solar (NASDAQ: FSLR) with our contributing expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!
*Stock prices used were the prices of Sep. 3, 2025. The video was published on Sep. 25, 2025.

Should you invest $1,000 in First Solar right now?

Before you buy stock in First Solar, consider this:

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and First Solar wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $649,280!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,084,802!*

Now, it’s worth noting Stock Advisor’s total average return is 1,058% — a market-crushing outperformance compared to 189% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of September 22, 2025

Anand Chokkavelu, CFA has positions in First Solar. Travis Hoium has positions in First Solar. Tyler Crowe has positions in First Solar. The Motley Fool has positions in and recommends First Solar. The Motley Fool has a disclosure policy.

Source link



MONEY

Why Tempus AI Stock Is Plunging This Week

Sep 25, 2025 Finance Desk

When a well-known growth investor decides to trim her position in a stock, investors sit up and take note.

Prior to the start of this week, Tempus AI (TEM -2.40%) stock had locked in a 161% gain since the start of the year — an impressive performance for the healthcare company that’s pioneering artificial intelligence (AI) solutions for improving patient outcomes. This week, however, Main Street noted a well-known investor’s decision to trim her position in Tempus AI stock, and the stock plunged.

According to data provided by S&P Global Market Intelligence, Tempus AI stock had fallen 12.4% from the end of trading last Friday through the close of Thursday’s market session.

Image source: Getty Images.

Ark Invest decides it’s time to reduce its position in Tempus AI

Representing significant positions in more than one of Ark Invest’s exchange-traded funds (ETFs), Tempus AI is ending the week with a smaller weighting in the ARK Innovation ETF (ARKK -2.19%). On Tuesday, Ark Invest trimmed the Tempus AI position in the ARK Innovation ETF by 62,352 shares, a transaction valued at about $5.2 million.

The decision to reduce the weighting of Tempus AI follows soon after the company announced it had received 510(k) clearance from the U.S. Food and Drug Administration (FDA) for its RNA-based Tempus xR IVD device — a tool intended to support drug development programs.

While the Cathie Wood-led ETF reduced its position in Tempus AI, the stock still retains a significant weighting in the ARK Genomic Revolution ETF, where it’s the largest position with a 10.7% weighting as of the end of trading on Thursday.

Should AI investors follow suit and reduce their positions in Tempus AI?

Although investors may be disconcerted to see the ARK Innovation ETF reduce its Tempus AI position, it’s worth noting that the AI stock still holds the pole position in the ARK Genomic Revolution ETF, so it’s clear Cathie Wood isn’t eschewing the stock completely.

Ark Invest ETFs frequently buy and sell stocks, and it wouldn’t be surprising if the fund chooses to buy Tempus AI stock again if the stock drops much further. If you were bullish on Tempus AI stock yesterday, nothing should change today.

Scott Levine has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Source link



MONEY

Why Did XRP Sink Today?

Sep 25, 2025 Finance Desk

Key Points

XRP is sliding alongside a broader crypto sell-off.

The Federal Reserve’s 0.25% rate cut last week was smaller than many investors had hoped.

10 stocks we like better than XRP ›

XRP (CRYPTO: XRP) fell on Thursday, down 6.8% as of 4:59 p.m. ET, as measured from 4 p.m. on Wednesday. The move comes as the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) both lost 0.5% on the day.

The banking-focused crypto is falling along with much of the market as investors await Friday’s personal consumption expenditure (PCE) data.

Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »

PCE inflation in focus for crypto investors

Many investors were hoping the Federal Reserve would cut rates by more than the 0.25% announced last week. That led to the forced liquidation of many leveraged positions that traders had taken ahead of the rate cut announcement. Lower interest rates typically reduce returns on safe assets, such as bonds, making riskier investments, like XRP, more attractive to investors.

Investors are now anxiously awaiting Friday’s PCE data — the inflation measure that has traditionally carried the most weight with the Fed — which will shed light on the central bank’s next policy moves.

Image source: Getty Images.

Bank adoption doesn’t necessarily mean XRP will rise in price

In a world of meme coins, XRP’s practical utility in streamlining payments and settlements between financial institutions stands out. However, I believe inventors often misunderstand some fundamental dynamics in how XRP is used — or rather, not used — by many of the institutions that utilize its blockchain.

I think the technology offered by its creator, Ripple, will continue to disrupt the banking industry; however, this does not necessarily mean XRP will rise in value. Its $166 billion market capitalization is inflated, and in my view, XRP is overvalued. Bitcoin and Ethereum are much smarter plays.

Should you invest $1,000 in XRP right now?

Before you buy stock in XRP, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and XRP wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $649,280!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,084,802!*

Now, it’s worth noting Stock Advisor’s total average return is 1,058% — a market-crushing outperformance compared to 189% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

See the 10 stocks »

*Stock Advisor returns as of September 22, 2025

Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP. The Motley Fool has a disclosure policy.

Source link



MONEY

Why IBM Stock Popped Today

Sep 25, 2025 Finance Desk

There was good news about the company’s efforts in a cutting-edge segment of the tech market.

Quantum computing is a hot area of the tech field these days, and thanks to that, International Business Machines (IBM 5.31%) stock was popular on Thursday.

A convincing demonstration of its prowess in this technology wowed investors, who collectively pushed the company’s share price up by over 5% that day. Speaking of convincing, that performance crushed the S&P 500 (^GSPC -0.50%); this slid by 0.5%.

Quantum leap

The demonstrator was global bank HSBC. Before market open, the company announced it successfully ran a trial of algorithmic bond trading analysis, using a combination of traditional and quantum computing resources. IBM team members handled the technical aspects of the test.

Image source: Getty Images.

HSBC said that the trial indicated that this combination delivered as much as a 34% improvement over classical prediction techniques in predicting key information about a bond trade — specifically, how high the possibility was that it would be filled at a quoted price.

In HSBC’s press release on the trial, the bank quoted vice president of IBM’s quantum unit Jay Gambetta as saying that it “shows what becomes possible when deep domain expertise is integrated with cutting-edge algorithm research, and the strengths of classical approaches are combined with the rich computational space offered by quantum computers.”

Clients with deep pockets

It was clever of IBM to get involved in HSBC’s effort to ramp up the technological foundation of an important securities trading activity. The tech company has clearly demonstrated that it can be a go-to partner for such well-capitalized clients, in a hotly competitive field where the stakes are high.

IBM isn’t necessarily a top choice for investors seeking to capitalize on quantum computing, but perhaps this piece of news will help move that needle.

HSBC Holdings is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends International Business Machines. The Motley Fool recommends HSBC Holdings. The Motley Fool has a disclosure policy.

Source link



MONEY

What Are the 2 Top Artificial Intelligence (AI) Stocks to Buy Right Now?

Sep 25, 2025 Finance Desk

It’s not too late to benefit from the growth of AI.

Artificial intelligence (AI) stocks have outperformed the stock market by a wide margin this year. The Morningstar Global Next Generation Artificial Intelligence Index, which provides exposure to about 50 top AI companies, is up 37% in 2025 (as of Sept. 19). The S&P 500 index has increased by 13% over that same time frame.

Because of how much growth there has already been in the AI sector, most of these stocks aren’t cheap. But that doesn’t mean you’re out of luck with investment opportunities. The global AI market is projected to grow at a compound annual rate of 29% through 2032, according to research by Fortune Business Insights.

So, which companies are best positioned to capitalize on that growth? Here is a pair of AI stocks worth considering for your portfolio.

Image source: Getty Images.

1. Nvidia

There are plenty of AI success stories out there, but none has been bigger than Nvidia (NVDA 0.35%). It’s the top company by market cap and the first to reach a value of $4 trillion.

Nvidia’s size and the fact that it’s trading at a high valuation (39 times forward earnings) scare off some investors. However, it has consistently delivered excellent results over the last two-plus years, beating earnings expectations and seeing revenue rise by more than 50% year over year for nine consecutive quarters.

Most of that is data center revenue as tech companies invest in Nvidia graphics processing units (GPUs) for the training and inference of their AI models. Nvidia is the dominant player here — estimates put its share of the AI chip market at 85% to 90%.

Nvidia is also taking steps to expand its reach. It recently invested $5 billion to take a roughly 5% stake in Intel. Intel is the leader in CPU market share, and data centers need AI GPUs and CPUs. Intel will now be making custom CPUs for Nvidia, allowing Nvidia to advance its technology.

On a negative note, China has reportedly banned its tech companies from using Nvidia AI chips due to tensions with the U.S. That effectively cuts Nvidia off from a major market. However, trade talks between the U.S. and China are ongoing, so it remains to be seen if this is a long-term issue.

2. Meta Platforms

Meta Platforms (META -1.46%), which owns Facebook, Instagram, and several other companies, is making a significant push into AI. So far this year, CEO Mark Zuckerberg has:

Hired away top AI talent from rival companies to form Meta Superintelligence Labs, with pay packages reportedly as high as $300 million.

Invested $14.8 billion to take a 49% stake in Scale AI, a data labeling start-up.

Committed to investing at least $600 billion in U.S. data centers and infrastructure through 2028.

Meta is incorporating AI through various aspects of its business. It launched a Meta AI assistant and has woven generative AI tools into its existing apps, including Messenger and WhatsApp. Meta Glasses are getting an upgrade to AI smart glasses. And it now offers AI advertising tools to enhance and optimize campaigns.

Advertising is also how Meta can afford to invest so heavily in AI. Its revenue over the trailing 12 months is $179 billion, with about 98% of that coming from advertising. Ad revenue gives Meta a sizable war chest — it has also generated $50 billion in free cash flow over the last 12 months.

It hasn’t all been smooth sailing for Meta lately. The tech giant’s Meta Ray-Ban Display glasses recently failed in two live demos, leading to an awkward moment for Zuckerberg and bad publicity for Meta’s AI ambitions. However, the glasses are getting positive early reviews.

Overall, this is a business with strong financials that’s betting big on AI to enhance its products and services. It’s also not overly expensive, trading at 28 times forward earnings. With its valuation, cash flow, and AI ambitions, Meta is one of the better tech investments currently available.

Lyle Daly has positions in Nvidia. The Motley Fool has positions in and recommends Intel, Meta Platforms, and Nvidia. The Motley Fool recommends the following options: short November 2025 $21 puts on Intel. The Motley Fool has a disclosure policy.

Source link



MONEY

Why BigBear.ai Stock Dropped Today

Sep 25, 2025 Finance Desk

Investors just turned bearish on BigBear again.

Shares of BigBear.ai (BBAI -4.94%), which uses artificial intelligence (AI) to help crunch large piles of data for its customers, tumbled in afternoon trading Thursday — on no obvious news.

As of 1:55 p.m. ET, the stock is down 7.1%.

Image source: Getty Images.

BigBear’s big news

BigBear.ai calls itself “a leading provider of mission-ready AI solutions and services for defense, national security, and critical infrastructure,” delivering “predictive analytics” to help users make decisions about complex data sets. As an example of its work, BigBear confirmed earlier this week that it’s playing a role in the Navy’s ongoing UNITAS 2025 maritime exercises, using AI tools to “improve coordination, decision-making, and threat detection in vast maritime operation zones where counter-narcotics, human trafficking, and arms smuggling are key concerns.”

That news helped propel BigBear to its highest stock price since mid-July, nearly $8 per share. However, while good PR for BigBear, the company’s press release didn’t mention any particular revenue benefit from its role — or make any promises that cooperation with the Navy will grow its business significantly.

Is BigBear.ai stock a buy?

This could be a problem for BigBear, which isn’t living up to its billing as a growth stock. Over the past five years BigBear’s grown revenue barely 1% per year, even as losses mount and cash burns down.

The good news for investors is that, with $390 million in the bank and only $113 million in debt, BigBear can continue consuming cash for more than a decade at its current burn rate (less than $28 million per year).

The bad news is that most analysts expect BigBear’s cash-burn rate to accelerate rather than holding steady, and indeed nearly double over the next two years. If this is how things play out, it’s probably best to be bearish on BigBear stock.

Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Source link



MONEY

Bitcoin, XRP, and Ethereum Are Falling. Here Are the 3 Main Headwinds Facing the Crypto Sector.

Sep 25, 2025 Finance Desk

September turbulence wiped out over $1.6 billion in crypto.

The cryptocurrency market has had an extraordinary year, with top cryptos like Bitcoin (BTC -4.23%) and Ethereum (ETH -8.20%) setting new all-time highs. That upward trend has stalled recently. As I write this (September 25), Bitcoin has fallen 5% in the last week, Ethereum is down 13% and XRP (XRP -6.93%) has shed over 9% over the same time period.

What’s behind this lackluster performance? And will so-called Uptober — a term based on data that shows prices often go up in October — turn the crypto tides? Let’s dive in to learn more about three headwinds facing cryptocurrencies right now.

1. Money is flowing out of crypto ETFs

Crypto often suffers from a ‘buy the rumor, sell the news’ syndrome. Speculation drives prices up in anticipation of a big event, and then they fall because investors sell once it actually happens. In the run-up to the Fed rate cut on September 17, crypto prices rallied, and spot Bitcoin ETFs saw solid inflows.

But as investors digested Federal Reserve Chair Jerome Powell’s words, they became more cautious. Particularly after a speech this week where Powell spoke of a “challenging situation” in trying to manage employment risks against inflation pressures. Lower rates often make riskier assets more attractive, but not if the benefits are offset by other economic concerns.

Sentiment is important in crypto, and right now, the fear and greed index is firmly in fear territory. That’s reflected in steep outflows from spot crypto ETFs. Per the Block data, there were over $360 million in outflows from spot Bitcoin ETFs on September 22. Fidelity Wise Origin Bitcoin Fund (FBTC -4.10%) alone reported $277 million in outflows. That’s one of the biggest single-day outflows we’ve seen this year.

2. Over $1.6 billion liquidated in one day

CoinGlass data shows over $1.6 billion was liquidated on September 21 — the largest amount so far in 2025. Over $500 million in Ethereum positions and around $300 million in Bitcoin positions were wiped out. The liquidation highlights how leveraged positions can quickly cascade as falling prices trigger liquidations and push prices even lower.

The use of margin and leverage in cryptocurrencies can amplify price volatility. And leverage levels in crypto are increasing. Investors can use their crypto as collateral and essentially borrow money to take a bigger position. If the market moves in their favor, it can translate into higher returns. However, if prices go the other way and there isn’t enough collateral to back up the loan, the broker may liquidate and forcibly close the position.

3. Crypto treasury companies are faltering

This year has seen a surge in companies adding cryptocurrencies — predominantly Bitcoin and Ethereum — to their balance sheets. Public companies now own about 5% of the total Bitcoin in circulation, per data from BitcoinTreasuries. Their steady accumulation is one of the drivers behind Bitcoin’s incredible price rally.

Pioneered by Strategy (MSTR -8.78%), around 200 companies now hold crypto. Many of them have raised money with the sole purpose of buying more. It can act as a hedge against inflation, and any gains from price appreciation will help their bottom line. However, if Bitcoin’s price falls, so will the value of those holdings. There’s a risk that companies may have to sell their crypto to cover their debt.

Currently, the corporate treasury model is under scrutiny. Companies are buying fewer Bitcoins. And a quarter of Bitcoin treasury companies now have a market cap that’s lower than their crypto holdings, per K33. Some are borrowing money to finance share buybacks, raising questions about the model’s long-term viability.

Image source: Getty Images.

Further volatility ahead

There’s been a lot of talk in the cryptocurrency news about the potential for sentiment to shift in Uptober. That’s because data shows that Bitcoin prices often fall in September and rise in October.

But the factors that are dragging crypto prices down won’t change just because we’re in a different month. Pay attention to jobs and inflation data. Not only will those figures influence Fed decisions about further rate cuts, but they also give us a better idea of whether the economy is slowing.

For all the headwinds, Bitcoin is holding its head above $111,000, and we may see some positive drivers before the end of the year. More rate cuts are likely, as well as SEC approval of a flurry of crypto ETFs. Plus, the government may make further progress with crypto legislation.

Whether or not the bulls can regain momentum, the recent price swings are a reminder of Bitcoin’s volatility. This remains a risky and unpredictable asset, making it important to limit your crypto exposure to only a small percentage of your wider portfolio.

Emma Newbery has positions in Ethereum. The Motley Fool has positions in and recommends Bitcoin, Ethereum, and XRP. The Motley Fool has a disclosure policy.

Source link



MONEY

Why XRP Is Falling Today

Sep 25, 2025 Finance Desk

Cryptocurrencies have struggled all week after a flash crash on Sunday night.

Most cryptocurrencies continued to struggle today after a flash crash earlier this week that may have removed some leverage out of the space. Today, however, investors seem more focused on economic data as they continue to grapple over how many interest rate cuts the Federal Reserve will make between now and the end of 2026.

Since yesterday afternoon, the price of XRP (XRP -5.18%) was roughly 4% lower, as of 12:06 p.m. ET today.

The Fed is cutting rates in a decent economy

Heading into the Fed’s meeting earlier this month, most of the market thought the Fed could potentially cut rates five or six times between now and the end of 2026. But Fed Chairman Jerome Powell called the recent quarter-point cut a “risk management cut” in case the economy were to slow significantly. The majority of Fed members expect another two rate cuts this year and then only one in 2026.

Image source: Getty Images.

While this could certainly change, new economic data this morning still points to a strong economy. Weekly jobless claims showing people filing for unemployment for the first time came in at 218,000 for the week ending Sept. 20, well below estimates and down by 14,000 from the week prior.

Second-quarter gross domestic product (GDP) was revised higher to 3.8%, the best quarter in over two years.

Crypto investors were likely looking for weaker data that would lead the Fed to have a longer rate-cutting cycle. Lower interest rates tend to lead to more-speculative investments like crypto.

Not much margin for error

XRP has been a great investment over the past year, but with the market expecting so many rate cuts until recently, crypto prices could be vulnerable if the market’s expectations for cuts continue to come down.

The crypto has a strong technical network and the potential to disrupt the international payments space, but it is still very volatile, so I think XRP is worth a smaller, more speculative investment at this time.

Source link



MONEY

If You’d Invested $500 in Wolfspeed 5 Years Ago, Here’s How Much You’d Have Today

Sep 25, 2025 Finance Desk

Some business pivots are successful. So far, this company’s pivot hasn’t been one of them.

Is a recovery story in the works for Wolfspeed (WOLF -7.88%)? After all, the next-gen semiconductor maker says it’ll soon emerge from Chapter 11 bankruptcy protection with a much cleaner balance sheet; it also faces a promising market for the silicon carbide and gallium nitride products in which it specializes.

Perhaps it might even recoup some of the significant losses its shares have incurred over the years.

A dimming light

Across a five-year stretch, a $500 investment in what’s now Wolfspeed would have withered to only $16.42. This, combined with the company entering bankruptcy proceedings, has made it something of a meme stock.

Image source: Getty Images.

Wolfspeed pivoted its business in 2021, changing its name (from Cree) and eschewing the light-emitting diode (LED) products that had been its main focus since the 1993 founding.

Instead, it embraced technology based on the aforementioned materials, which promise greater efficiency and speed than conventional silicon solutions. Promise isn’t fusing with reality, however, as demand in the crucial yet ultracompetitive electric vehicle (EV) components space hasn’t been as strong as hoped.

The company consistently books bottom-line losses, with its generally accepted accounting principles (GAAP) net shortfall nearly quadrupling in its most recently reported quarter to $669 million from the year-ago frame’s less than $175 million. Net revenue also declined, sliding to $197 million from under $201 million.

Emerging from the den of bankruptcy

One piece of good news is that, earlier this month, Wolfspeed received approval for its plan of reorganization to emerge from bankruptcy. It reached an agreement with creditors to slice outstanding debt by around 70%, or approximately $4.6 billion, leading to a roughly 60% reduction in interest payments.

The considerable downside for current stock investors is that Wolfspeed’s existing equity will be eliminated, with current shareholders receiving a collective figure of merely 3% to 5% of new common stock.

So Wolfspeed’s future is cloudy at best, and it hardly looks like today’s investors will be tomorrow’s gainers. I feel this stock is too risky for a buy just now.

Source link



MONEY

Micron Just Delivered a Huge Fourth Quarter. 3 Reasons the AI Stock Can Move Higher.

Sep 25, 2025 Finance Desk

The maker of memory chips posted another stellar report.

Memory-chip maker Micron (MU -2.68%) has historically been one of the most cyclical stocks in the chip sector. Memory is prone to boom and bust cycles as inventory levels and prices fluctuate according to supply and demand.

However, Micron has been one of the best performers in the semiconductor sector this year, a sign that investors may be underrating its momentum and that of the memory segment in the AI boom. Micron and its peers make high-bandwidth memory (HBM) chips that are an essential component of AI, and that’s a key reason the stock has doubled this year, outpacing better-known industry players like Nvidia and AMD. That strength and momentum were on display in Micron’s fourth-quarter earnings report.

After raising its guidance in August, the company topped both its updated guidance and analyst estimates.

Image source: Getty Images.

Revenue in the quarter jumped 46% to $11.32 billion, which topped the consensus at $11.16 billion. The quarter capped off a year with similar growth and full-year revenue of $37.4 billion.

The company also fulfilled an earlier promise, made in March 2024, that Micron would be one of the biggest beneficiaries of AI in the semiconductor industry, and that it would deliver record revenue and significantly improved profitability for the year it just completed. It did just that.

In addition to the strong revenue growth, gross margin improved from 35.3% to 44.7%, reflecting the ramping up of high-value data center products and pricing strength in dynamic random-access memory (DRAM), which includes HBM.

Operating margin improved from 19.6% to 32.3% as it gained leverage on research and development and selling, general, and administrative expenses, and it reported adjusted earnings per share of $3.03, up from $1.18 in the quarter a year ago, and ahead of estimates at $2.86.

Micron stock was essentially flat on the report, but that seems to just be a reflection that high expectations were baked in after the stock rose roughly 40% in September coming into the report. Keep reading to see three reasons the stock can continue gaining.

1. Guidance shows results will get even better

Micron did not give guidance for the full fiscal year, but its outlook for the first quarter shows its momentum will continue into the current quarter.

It called for $12.2 billion to $12.8 billion in revenue, up 44% from the quarter a year ago at the midpoint and well ahead of the consensus at $11.83 billion. It also forecast gross margin to top 50% at 50.5% to 52.5% on an adjusted basis. The company’s gross margin has only been above 50% one other time before, during a boom in the late 2010s.

2. Supply remains tight

Supply/demand dynamics are kind in Micron’s business, so it’s good news that management sees supply remaining tight in the year ahead.

Micron was sold out of HBM capacity for this year by June 2024, and management continues to see a tight supply environment in fiscal 2026, especially as demand for AI capacity keeps accelerating.

That dynamic should support high prices for Micron’s products and strong margins into fiscal 2026. The company also said it expects to sell the remainder of its HBM supply for calendar 2026 in the coming months.

3. Micron is still a good value

Forward estimates on Micron have moved steadily upward, and should do so again following the latest earnings report. It now trades at a trailing price-to-earnings ratio (P/E) of 20, and a forward P/E of 12.5.

Compared to its peers in the AI sector, those are rock-bottom valuations, and it’s still growing faster than many of its chip stock peers. In fact, its revenue growth is now rivaling that of Nvidia.

The low valuation seems to reflect the previous boom-and-bust cycles in memory, but the AI era may have introduced a new paradigm for the sector. While the same underlying dynamics still exist, the size of the market now seems to be significantly larger, meaning Micron could have more years of booming growth ahead of it — good news for its investors.

Jeremy Bowman has positions in Advanced Micro Devices, Micron Technology, and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy.

Source link



MONEY

EU’s green demands are jamming trade talks with India

Sep 25, 2025 Finance Desk

Published on 25/09/2025 – 14:39 GMT+2
•Updated
15:05

ADVERTISEMENT

Negotiations over the sustainability chapter of the trade agreement with India are proving “challenging” the Commission’s chief negotiator Christophe Kiener told a meeting of the European Parliament’s trade committee on Thursday.

“We will need to adjust the approach we usually take on trade and sustainable development to make sure this is something India can live with,” said Kiener, adding: “Not having a chapter on trade and sustainability is not an option, but we must also make sure that this chapter cannot be an empty shell.”

The EU and India aim to conclude negotiations on a trade agreement by the end of the year. On 12 September, EU Trade Commissioner Maroš Šefčovič and Agriculture Commissioner Christophe Hansen travelled to New Delhi for a new round of talks. However, no breakthrough was achieved.

One of the main sticking points is the dispute settlement mechanism the EU seeks to include in the deal to ensure India complies with environmental standards.

“The notion that there would be a dispute settlement, let alone sanctions applying to those commitments, the idea that the commitments would be legally binding, that civil society would be involved in the management of the agreement from that perspective, but also that those commitments would apply at the sub-federal level — these are elements that are very difficult for India,” Kiener told MEPs.

India ‘not like New Zealand’

Since its last mandate, the Commission pushes for inclusion of environmental provisions in its trade agreements, including mechanisms to oversee their implementation and enforce compliance.

This same chapter proved contentious during the EU’s talks with the Mercosur countries — Argentina, Brazil, Paraguay, and Uruguay — until a deal was finally reached in December 2024.

The Mercosur agreement includes a dispute settlement mechanism involving an external review by independent experts and participation from civil society. It also identifies adherence to the Paris Agreement — the legally binding international climate treaty adopted in 2015 — as an “essential element” of the deal. This means the agreement can be suspended if one party seriously breaches or withdraws from the climate accord.

“We should not fall into the delusion that India is a country like New Zealand,” Kiener said, referring to the EU-New Zealand deal that entered into force in May 2024 and is considered a benchmark for integrating green standards into trade agreements.

EU green legislation, in particular the Carbon Border Adjustment Mechanism (CBAM) adopted in 2023, has raised concerns among Indian negotiators, Kiener told MEPs. CBAM introduces a levy on imports into the EU of certain carbon-intensive goods, a measure India perceives as potentially protectionist.

Source link



MONEY

Why Marathon Digital Could Be a Millionaire-Maker Stock

Sep 25, 2025 Finance Desk

This company is doing the hard work to secure its future supply of a key input.

It’s often said that picks and shovels made more fortunes in gold rushes than most prospectors. In crypto’s version of the story, the picks are electricity, mining chips, and hardware uptime. And that’s where Marathon Digital Holdings (MARA -0.40%) aims to win by operating as an industrial-scale and increasingly efficient miner of Bitcoin.

After Bitcoin’s most recent halving, only miners with cheap, reliable energy and top-tier efficiency can thrive. Marathon’s strategy is built around both. Let’s map out if an investment might help turn Marathon investors into millionaires.

Image source: Getty Images.

Cost and clean power are the moat

In terms of the company’s production capacity, Marathon’s management targets 75 exahash of computing capability by the end of 2025, up by more than 40% from 2024. Efficiency has been trending the right way; after closing 2024 at roughly 20 joules of energy per terahash of computing power (J/TH), its hardware fleet was improved to about 18.3 J/TH by the second quarter of 2025, marking a meaningful cut.

To accomplish that and future efficiency improvements, the company expects to begin energizing its Texas wind power generation site in the second half of 2025. If it can secure further cheap renewable energy buildouts, its self-powering operations will have a competitive advantage that could drive significant returns over the long run.

Is this a millionaire maker?

Marathon currently has 52,477 BTC, which ties its operating results tightly to price appreciation of the coin over time. If we assume Bitcoin will continue to gain value over time, could buying shares of this business mint millionaires?

The 100x outcome that’s necessary to create millionaires implies a process of massive value creation; Marathon’s market cap is currently $6.5 billion. Marathon could, over the course of years, exhibit such value creation via its energy investments, assuming Bitcoin cooperates and the mining company’s execution is solid.

So it isn’t impossible, but it isn’t a safe base case to do your investment planning around, either. Marathon’s potential rewards come with significant risks.

Source link



Posts pagination

1 … 25 26 27 … 129