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Dollar Tree Inc. has announced the sale of its struggling Family Dollar business for $1 billion to investment firms Brigade Capital Management and Macellum Capital Management.

Dollar Tree Inc.’s stock climbed 3.4% early Wednesday to lead S&P 500 premarket gainers, however, at 9:08 am pre-market, it was up by only 0.55%.

The deal, expected to close within 90 days, marks the end of a rocky nine-year ownership, during which Dollar Tree struggled to integrate the discount chain into its operations.

A costly deal gone sour

Dollar Tree acquired Family Dollar in 2015 for $8.5 billion after a bidding war with Dollar General.

The move was meant to strengthen its position in the discount retail market, but the integration proved difficult.

Operational challenges, store closures, and underwhelming performance dragged on Dollar Tree’s financials.

Over the last 12 months, Dollar Tree’s stock has fallen 47%, in sharp contrast to the S&P 500’s 11% gain.

The company launched a strategic review of Family Dollar last June, ultimately leading to the sale.

“With the sale of Family Dollar set to close later this year, we will be able to fully dedicate ourselves to Dollar Tree’s long-term growth, profitability, and returns on capital,” said Chief Executive Mike Creedon in a statement.

Financial relief and tax benefits

Dollar Tree expects to receive approximately $804 million in net proceeds from the sale.

Additionally, tax benefits from the transaction’s losses are estimated to provide an economic impact of around $350 million.

Analysts see the sale as a necessary step for Dollar Tree to regain its footing.

BofA Securities analyst Robert F. Ohmes suggested that offloading Family Dollar could unlock value for the retailer by allowing it to refocus on its core business.

Despite the pending sale, Family Dollar will remain headquartered in Chesapeake, Virginia.

Fourth-quarter results show mixed performance

Dollar Tree also reported its fiscal fourth-quarter earnings, revealing a net loss of $3.69 billion, or $17.17 per share, compared to a $1.71 billion loss in the prior year.

However, on an adjusted basis, earnings per share stood at $2.29, slightly above analyst expectations of $2.20.

Total sales for the quarter came in at $8.265 billion, exceeding analyst projections of $8.24 billion.

Dollar Tree stores saw a 2% rise in same-store sales, driven by a 0.7% increase in customer traffic and a 1.3% rise in average ticket size.

Future outlook

For the first quarter, Dollar Tree forecasts net sales of $4.5 billion to $4.6 billion, with adjusted earnings per share between $1.10 and $1.25.

Looking ahead to fiscal 2025, the company expects adjusted earnings of $5.00 to $5.50 per share and total sales of $18.5 billion to $19.1 billion, with same-store sales projected to rise 3% to 5%.

The Family Dollar sale marks a significant shift for Dollar Tree as it seeks to rebuild investor confidence and sharpen its business strategy.

The post Dollar Tree stock rises despite sale of Family Dollar at a huge loss: here’s why appeared first on Invezz

The Atlantic published Wednesday what it described as the ‘attack plans’ at the center of a Signal text chain leak involving senior officials in the Trump administration.

Secretary of Defense Pete Hegseth and national security adviser Mike Waltz have faced calls to resign following revelations that the outlet’s editor-in-chief Jeffrey Goldberg was inadvertently added to a private group chat earlier this month in which Hegseth, Waltz, Vice President JD Vance and other top administration officials reportedly discussed impending airstrikes on Yemen’s Houthi rebels. Hegseth has said ‘nobody was texting war plans’ and Director of National Intelligence Tulsi Gabbard vowed during a Senate Intelligence Committee hearing Tuesday that there was ‘no classified material’ in the messages.

‘TEAM UPDATE: TIME NOW (1144et): Weather is FAVORABLE. Just CONFIRMED w/CENTCOM we are a GO for mission launch. 1215et: F-18s LAUNCH (1st strike package). 1345: ‘Trigger Based’ F-18 1st Strike Window Starts (Target Terrorist is @ his Known Location so SHOULD BE ON TIME – also, Strike Drones Launch (MQ-9s),’ Hegseth apparently wrote in a screenshot of a text message released Wednesday by The Atlantic. 

‘1410: More F-18s LAUNCH (2nd strike package). 1415: Strike Drones on Target (THIS IS WHEN THE FIRST BOMBS WILL DEFINITELY DROP, pending earlier ‘Trigger Based’ targets). 1536 F-18 2nd Strike Starts – also, first sea-based Tomahawks launched,’ Hegseth reportedly continued, before adding ‘Godspeed to our Warriors.’

Waltz later allegedly wrote ‘The first target – their top missile guy – we had positive ID of him walking into his girlfriend’s building and it’s now collapsed,’ according to The Atlantic. 

‘Excellent,’ read a message in response attributed to Vance.

The Atlantic said in its report Wednesday – titled ‘Here Are the Attack Plans That Trump’s Advisers Shared on Signal’ – that ‘the statements by Hegseth, Gabbard, Ratcliffe, and Trump – combined with the assertions made by numerous administration officials that we are lying about the content of the Signal texts – have led us to believe that people should see the texts in order to reach their own conclusions.’

‘There is a clear public interest in disclosing the sort of information that Trump advisers included in nonsecure communications channels, especially because senior administration figures are attempting to downplay the significance of the messages that were shared,’ wrote the Atlantic’s Goldberg and reporter Shane Harris. 

‘Experts have repeatedly told us that use of a Signal chat for such sensitive discussions poses a threat to national security. As a case in point, Goldberg received information on the attacks two hours before the scheduled start of the bombing of Houthi positions. If this information – particularly the exact times American aircraft were taking off for Yemen – had fallen into the wrong hands in that crucial two-hour period, American pilots and other American personnel could have been exposed to even greater danger than they ordinarily would face,’ they also said.

Vance responded to the report Wednesday by declaring that ‘It’s very clear Goldberg oversold what he had. 

‘But one thing in particular really stands out. Remember when he was attacking Ratcliffe for blowing the cover for a CIA agent? Turns out Ratcliffe was simply naming his chief of staff,’ he added.

The Atlantic report said ‘A CIA spokesperson asked us to withhold the name of John Ratcliffe’s chief of staff, which Ratcliffe had shared in the Signal chain, because CIA intelligence officers are traditionally not publicly identified.’

Waltz wrote on X ‘No locations. No sources & methods. NO WAR PLANS. Foreign partners had already been notified that strikes were imminent. BOTTOM LINE: President Trump is protecting America and our interests.’

White House Deputy Chief of Staff Taylor Budowich said in response to the report that ‘The Atlantic has already abandoned their bulls— ‘war plans’ narrative, and in releasing the full chat , they concede they LIED to perpetuate yet ANOTHER hoax on the American people. What scumbags!’

‘The Atlantic has conceded: these were NOT ‘war plans,’’ White House Press Secretary Karoline Leavitt added. ‘This entire story was another hoax written by a Trump-hater who is well-known for his sensationalist spin.’

Some Congressional Democrats have been calling for Hegseth’s ouster since the text chain leak was first reported.

House Minority Leader Hakeem Jeffries, the highest-ranking Democrat to do so, wrote a letter to President Donald Trump yesterday demanding that Hegseth be ‘fired immediately.’ 

‘The so-called Secretary of Defense recklessly and casually disclosed highly sensitive war plans — including the timing of a pending attack, possible strike targets and the weapons to be used –during an unclassified national security group chat that inexplicably included a reporter. His behavior shocks the conscience, risked American lives and likely violated the law,’ Jeffries wrote.

Pressed by a reporter yesterday about the matter, Hegseth claimed he has everything under control.

‘Nobody’s texting war plans,’ he said. ‘I know exactly what I’m doing, exactly what we’re directing, and I’m really proud of what we accomplished, the successful missions that night and going forward.’

Fox News’ Landon Mion contributed to this report.

This post appeared first on FOX NEWS

: Senate Judiciary Chairman Chuck Grassley, R-Iowa, will hold a hearing next week on federal judges’ use of nationwide orders to throttle the Trump administration’s actions, which will take place back to back with an identical hearing in the lower chamber. 

In an exclusive statement to Fox News Digital, Grassley said, ‘District judges’ abuse of nationwide injunctions has hobbled the executive branch and raised serious questions regarding the lower courts’ appropriate jurisdictional realm.’

‘Since the courts and the executive branch are on an unsustainable collision course, Congress must step in and provide clarity,’ he explained. ‘Our hearings will explore legislative solutions to bring the balance of power back in check.’

The hearing is slated to take place on April 2, one day after the House’s hearing. 

‘We plan to have hearings starting next Tuesday on this broad subject,’ House Judiciary Committee Chairman Jim Jordan, R-Ohio, told ‘Fox & Friends’ on Wednesday morning.

It will be titled ‘Rule by District Judges II: Exploring Legislative Solutions to the Bipartisan Problem of Universal Injunctions.’

Specifically, the committee will look at both the constitutional and policy issues that are raised by judges issuing nationwide injunctions, particularly the uptick brought on by the Trump administration. It will further examine what harm the wide-ranging orders have posed to each branch of government, and what kind of solutions are on the table for Congress. 

The Senate Judiciary Committee’s Republican majority has invited witnesses Samuel Bray and Jesse Panuccio to testify at the hearing. 

Bray is the John N. Matthews Professor of Law at Notre Dame and is an expert on nationwide injunctions. He has written and testified on the subject extensively. He notably penned a Harvard Law Review article, ‘Multiple Chancellors: Reforming the National Injunction.’

Panuccio is a partner at Boies Schiller Flexner and was previously the acting associate attorney general at the Department of Justice (DOJ), as well as the chairman of the DOJ’s Regulatory Reform Task Force and vice chairman of the DOJ’s Task Force on Market Integrity and Consumer Fraud. He also spent time as Florida Gov. Rick Scott’s general counsel.

This is not the first time lawmakers have expressed concerns over the ability of federal judges to stop actions nationwide in their tracks. At a hearing in 2020, led by former committee Chairman Lindsey Graham, R-S.C., it was discussed at length by bipartisan senators. 

Several Republicans have already introduced bills in the House and Senate aimed at restricting the ability of federal judges to kneecap the administration. The president has expressed interest in one such measure, led by Rep. Darrell Issa, R-Calif., Fox News Digital reported last week. 

According to two sources familiar with the discussions, top White House aides told senior Capitol Hill staff members last week, ‘the president wants this.’ They also said the White House felt that time was of the essence when it comes to the judicial issue and Trump wants Congress to expedite the matter. 

While the hearings have been promptly scheduled for next week, there is no word on whether legislation on the issue will be brought to the Senate floor. 

The office of Senate Majority Leader John Thune, R-S.D., did not provide comment to Fox News Digital when asked if he had ideas for policy regarding the injunctions, or whether he believed Congress needed to act. 

When asked by Fox News earlier this week about calls to impeach judges, Thune noted that Grassley was examining the issue and said, ‘At the end of the day, there is a process, and there’s an appeals process. And, you know, I suspect that’s ultimately how it’s going to be ended.’

During a floor speech Tuesday, Senate Majority Whip John Barrasso, R-Wyo., said, ‘When partisan, unelected district court judges try to micromanage the president of the United States, it isn’t judicial review. It isn’t checks and balances. It is purely partisan politics – and it is wrong.’ 

But the No. 2 Republican didn’t call for any specific legislation on the subject. 

Critics of the GOP’s cautious approach toward federal judges’ wide-ranging orders include Gov. Ron DeSantis, R-Fla., who asked why bills weren’t already teed up at the start of the Congress. 

‘Congress has the authority to strip jurisdiction of the federal courts to decide these cases in the first place,’ the governor said on X earlier this month. 

‘The sabotaging of President Trump’s agenda by ‘resistance’ judges was predictable – why no jurisdiction-stripping bills tee’d up at the onset of this Congress?’ he asked. 

This post appeared first on FOX NEWS

Sen. Josh Hawley asked FBI Director Kash Patel Wednesday to look into alleged Biden-era abuses against Christians, urging Patel in a new letter to crack down on what the Missouri Republican described as First Amendment violations he said were carried out under the Biden administration.

In the letter, previewed exclusively by Fox News Digital, the Missouri Republican asked Patel to investigate alleged abuses against pro-life activists and Christians. He also urged Patel to release by April 30 information compiled by the FBI’s Richmond, Virginia, field office – including a memo that labeled certain traditionalist Catholics as potential ‘security risks’ – and to address possible violations of the FACE Act, which Hawley said targeted pro-life protesters.

‘I trust that, under your leadership, this misconduct will end. But those responsible must be held accountable,’ Hawley said in the letter. 

‘Transparency and accountability will be paramount in restoring Americans’ faith in the Bureau,’ he added. ‘Getting to the bottom of the Biden Administration’s violations of religious liberty is an excellent place to start.’

The letter from Hawley, who chairs the Senate Judiciary Subcommittee on Crime and Counterterrorism, is not the first time he has used his post to urge Patel to protect against Christian persecution. 

Hawley’s letter calls on the FBI to share with his office by the end of April a list of 22 memos and documents compiled by the FBI Richmond Field Office and related to the alleged FACE Act abuses, including all emails, memoranda, directives and policy guidance, sent to or from the FBI director, deputy director, or any other senior official regarding the enforcement of the FACE Act under the Biden Administration. 

Hawley also urged Patel to share all documents – including communications with state and local law enforcement agencies – that discuss how the Richmond Field Office memorandum or similar FBI policies were implemented or considered for enforcement at the state or local level.

Hawley zeroed in on these issues during Patel’s confirmation hearing earlier this year.

‘Do you think it’s appropriate for the FBI to single out and target people of faith in order to discourage the exercise of their First Amendment rights?’ he asked Patel in January. 

Patel vowed in response that he would ‘fully utilize, if confirmed, the investigative powers of the FBI to give you the information you require and also to hold those accountable who violated the sacred trust placed upon the FBI.’

This post appeared first on FOX NEWS

The leak of Houthi strike plans by the Trump administration to a journalist was not the result of a hack but an apparent human error. Still, it sparked debate over whether the nation’s most powerful government officials should communicate sensitive military information on a non-government platform. 

Jeffrey Goldberg, editor-in-chief of The Atlantic, wrote on Monday that he was added to a group chat on Signal on March 11 by National Security Advisor Mike Waltz titled ‘Houthi PC small group.’ His article details a leaked conversation between the nation’s top government officials, including the vice president, secretary of defense, director of the CIA and others, in which the sensitive details of a planned strike on Houthi terrorists in Yemen were reportedly discussed. 

The report shocked Washington and led to accusations from Democrats and others that President Donald Trump’s team endangered national security and possibly violated the law by using Signal, a messaging app. Signal’s platform is encrypted, but that doesn’t mean it is not susceptible to hacks, experts told Fox News Digital.

Encryption means that only the sender and the receiver of a message should be able to review it; not even Signal itself can pull its contents. But even without viewing a message’s contents, some metadata might be attainable.

‘Knowing who has spoken with whom at what time and for what duration is already very useful intelligence,’ said Vahid Behzadan, cybersecurity professor and researcher at the University of New Haven. 

‘If a phone is infected with spyware, messages can be intercepted before or after encryption.’

‘Screenshots or photos are not protected by Signal itself … and if previews are enabled by users in the app, sensitive info could appear on a locked screen,’ he said. 

Government officials and journalists often use Signal to communicate sensitive information for fear that emails and text communications on official government cellphones could fall under the Freedom of Information Act, meaning they could be made public. However, transmitting controlled but unclassified information on Signal is explicitly banned by Defense Department policy.

In February, Google’s Threat Intelligence Group warned of ‘increasing efforts from several Russia-aligned actors to compromise Signal accounts used by individuals of interest to Russia’s intelligence services.’ 

‘While this emerging operational interest has likely been sparked by wartime demands to gain access to sensitive government and military communications in the context of Russia’s re-invasion of Ukraine, we anticipate the tactics and methods used to target Signal will grow in prevalence in the near-term and proliferate to additional threat actors and regions outside the Ukrainian theater of war,’ Google said. 

Google warned that Signal could obtain access to all of a target’s information on their phone while their device is unlocked. 

‘As reflected in wide-ranging efforts to compromise Signal accounts, this threat to secure messaging applications is not limited to remote cyber operations such as phishing and malware delivery, but also critically includes close-access operations where a threat actor can secure brief access to a target’s unlocked device.’

At first, Goldberg said, he worried that the Signal chat was fake. 

But shortly thereafter, top names in the administration, Vice President JD Vance, Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, Director of National Intelligence Tulsi Gabbard, CIA Director John Ratcliffe, and Treasury Secretary Scott Bessent, began naming their points of contact for the impending offensive campaign in Yemen against the Houthis, according to The Atlantic. 

The group then reportedly began to use the chat for coordinating messaging plans as the administration moved closer to its offensive campaign, which was made public on March 14. 

The Trump administration has insisted no one shared classified information in the ‘Houthi PC small group’ chat. 

Ratcliffe said he’d been briefed by the agency about the ‘permissible work use’ of Signal. 

But Goldberg said the chat ‘contained operational details of forthcoming strikes on Iran-backed Houthi rebels in Yemen, including information about targets, weapons the U.S. would be deploying, and attack sequencing.’ He redacted some of the information he deemed potentially sensitive, including the name of a CIA agent who Ratcliffe had named to run point on the strikes.

Ratcliffe said it was not improper for him to share the officer’s name because he was not under active cover.

Both Ratcliffe and Gabbard said they could not recall whether specific weapons systems or specific targets had been mentioned in the Signal chat during a Senate worldwide threats hearing on Tuesday. 

When asked whether Hegseth had declassified information about the Houthi operations before sharing it in the chat, they referred senators to the Defense Department. 

Rep. Don Bacon, R-Neb., a national security hawk, isn’t buying that the chat did not reveal classified information. 

‘I will guarantee you 99.99% with confidence Russia and China are monitoring those two phones,’ Bacon said of the chat. 

‘This is a gross error, and it’s intentional. They intentionally put highly classified information on an unclassified device. I would have lost my security clearance in the Air Force for this and for a lot less.’

Matthew Shoemaker, a former defense intelligence official, said sharing classified information on Signal would violate Title 18 of U.S. Code 793, which bans gathering, transmitting or losing defense information. The punishment for such a crime carries up to 10 years in prison.

‘They had to physically remove it from a classified system and then put it on an unclassified system,’ he said. ‘Any uniformed officer would immediately be relieved of command.’

‘It’s hard to believe this is the first time they’ve been doing this. It’s likely just the first time they’ve been caught.’ 

On top of it all, Shoemaker said, White House envoy Steve Witkoff, who was a part of the chat, was in Russia on Russian-operated cell networks at the time the strike information was being communicated to him.

‘Given the Russian GRU’s past activity breaking into Signal, it’s highly likely the Russians saw everything.’

He said that any conversations about the timing of the strike, assets used or weapons is all strike package information that is ‘highly classified, likely at the top secret level.’

‘I’m sure the targeting intelligence officers would be very surprised to learn their work is actually unclassified, if what Pete Hegseth is saying were true.’

The threat of hacking the chat would depend on whether officials were using their government phones with extra layers of encryption or personal devices, according to James Robbins, dean of academics at the Institute of World Politics and former advisor to the late Defense Secretary Donald Rumsfeld.

‘I think we can assume that any government-issued phone to somebody at a Cabinet level would have all kinds of safeguards preinstalled,’ he said. 

He said the fact that Witkoff was in Russia did not mean he ‘was plugging into a Russian Wi-Fi.’ 

‘Things get communicated from our foreign embassies and foreign locations all the time. That doesn’t mean it goes over a foreign network.’

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A federal judge in Washington, D.C., temporarily blocked the shutdown of a U.S.-funded radio network. 

U.S. District Judge Royce Lamberth, who was appointed by former President Ronald Reagan, granted a temporary restraining order on the shutdown of Radio Free Europe/Radio Liberty (RFE/RL), a non-profit news organization originally founded in the 1950s by the Central Intelligence Agency to broadcast behind the Iron Curtain during the Cold War. 

Congress later began funding RFE/RL in the 1970s to promote democracy across the globe. 

The judge found Kari Lake, the longtime Arizona broadcaster and unsuccessful gubernatorial and Senate candidate tapped to oversee the U.S. Agency for Global Media, likely violated federal law in moving to slash RFE/RFL’s funding in line with President Donald Trump’s agenda to eliminate government waste. 

The U.S. Agency for Global Media houses Radio Free Europe and Asia, as well as Voice of America and Radio Marti in Cuba. 

‘RFE/RL has, for decades, operated as one of the organizations that Congress has statutorily designated to carry out this policy,’ Lamberth wrote. ‘The leadership of USAGM cannot, with one sentence of reasoning offering virtually no explanation, force RFE/RL to shut down—even if the President has told them to do so.’

Trump signed an executive order earlier this month aimed at dismantling U.S.-funded media organizations. A senior White House official told Fox News Digital at the time that Voice of America ‘has been out of step with America for years.’

‘It serves as the Voice for Radical America and has pushed divisive propaganda for years now,’ the official said. 

The executive order, which targets seven offices, including the U.S. Agency for Global Media, said ‘non-statutory components and functions of the following governmental entities shall be eliminated to the maximum extent consistent with applicable law, and such entities shall reduce the performance of their statutory functions and associated personnel to the minimum presence and function required by law.’ 

RFE/RFL sued in federal court, saying that the administration immediately froze nearly $7.5 million in funding already appropriated by Congress. The Justice Department wrote in court documents on Monday that the disbursement was underway and proof of payment would come by Wednesday. 

Voice of America Director Michael Abramowitz wrote on X that ‘virtually’ the whole 1300-person staff was placed on leave. 

In a court hearing Monday, Justice Department lawyer Abby Stout argued that RFE/RL has no grounds for a restraining order given the U.S. government would disburse the nearly $7.5 million. The plaintiff’s lawyer, Thomas Brugato, said the disbursement was only a temporary fix and the non-profit could expect widespread layoffs and to close by April if funding doesn’t continue.

‘It’s really a Band-Aid,’ Brugato said in court, according to The Hill. 

In his order, Lamberth said RFE/RL ‘was originally conceived of in the 1950s as a vehicle for providing trustworthy, locally relevant news to audiences subject to communist propaganda.’ 

‘Since its inception, RFE/RL has continued to expand, responding to threats to democracy and media freedom across the globe,’ the judge wrote, later concluding, ‘The Court concludes, in keeping with Congress’s longstanding determination, that the continued operation of RFE/RL is in the public interest.’

Separately, a lawsuit was brought Friday by Voice of America reporters, Reporters Without Borders and a handful of unions in U.S. District Court in New York against the U.S. Agency for Global Media and Kari Lake over efforts to shut them down. 

Fox News’ Emma Colton contributed to this report.

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Investors have closely watched Nvidia’s week-long GPU Technology Conference (GTC) for news and updates from the dominant maker of chips that power artificial intelligence applications.

The event comes at a pivotal time for Nvidia shares. After two years of monster gains, the stock is down 15% over the past month and 22% below the January all-time high.

As part of the event, CEO Jensen Huang took questions from analysts on topics ranging from demand for its advanced Blackwell chips to the impact of Trump administration tariffs. Here’s a breakdown of how Huang responded — and what analysts homed in on — during some of the most important questions:

Huang said he “underrepresented” demand in a slide that showed 3.6 million in estimated Blackwell shipments to the top four cloud service providers this year. While Huang acknowledged speculation regarding shrinking demand, he said the amount of computation needed for AI has “exploded” and that the four biggest cloud service clients remain “fully invested.”

Morgan Stanley analyst Joseph Moore noted that Huang’s commentary on Blackwell demand in data centers was the first-ever such disclosure.

“It was clear that the reason the company made the decision to give that data was to refocus the narrative on the strength of the demand profile, as they continue to field questions related to Open AI related spending shifting from 1 of the 4 to another of the 4, or the pressure of ASICs, which come from these 4 customers,” Moore wrote to clients, referring to application-specific integrated circuits.

Piper Sandler analyst Harsh Kumar said the slide was “only scratching the surface” on demand. Beyond the four largest customers, he said others are also likely “all in line looking to get their hands on as much compute as their budgets allow.”

Another takeaway for Moore was the growth in physical AI, which refers to the use of the technology to power machines’ actions in the real world as opposed to within software.

At previous GTCs, Moore said physical AI “felt a little bit like speculative fiction.” But this year, “we are now hearing developers wrestling with tangible problems in the physical realm.”

Truist analyst William Stein, meanwhile, described physical AI as something that’s “starting to materialize.” The next wave for physical AI centers around robotics, he said, and presents a potential $50 trillion market for Nvidia.

Stein highliughted Jensen’s demonstration of Isaac GR00T N1, a customizable foundation model for humanoid robots.

Several analysts highlighted Huang’s explanation of what tariffs mean for Nvidia’s business.

“Management noted they have been preparing for such scenarios and are beginning to manufacture more onshore,” D.A. Davidson analyst Gil Luria said. “It was mentioned that Nvidia is already utilizing [Taiwan Semiconductor’s’] Arizona fab where it is manufacturing production silicon.”

Bernstein analyst Stacy Rasgon said Huang’s answer made it seem like Nvidia’s push to relocate some manufacturing to the U.S. would limit the effect of higher tariffs.

Rasgon also noted that Huang brushed off concerns of a recession hurting customer spending. Huang argued that companies would first cut spending in the areas of their business that aren’t growing, Rasgon said.

This post appeared first on NBC NEWS

DoorDash and Klarna are joining forces to let users pay for meal deliveries with installment loans, calling it “essential to meeting our customers’ needs.” Not everyone sees it that way.

The announcement has drawn a flurry of criticism on social media, less directed at the companies themselves than questioning what the need to use a “buy now, pay later” service for food orders says about the increasingly debt-ridden economy.

“Eat now, pay later? A credit apocalypse is coming,” an X user wrote Thursday when the partnership was announced.

Another X poster used a photo of a forlorn-looking Dave Ramsey, the personal finance pundit, with the caption, “what do you mean you have $11k in ‘doordash debt’.”

Others whipped up “Sopranos” memes, quipping about “DoorDash debt collection outside your door because you missed a Chipotle payment.”

The economic commentator Kyla Scanlon said in a social media video that the deal was another example of the “gambling economy.”

“We have memecoins, sports betting — we love a good vice in the United States, and we can do it completely frictionless,” she said. “We don’t even have to put on pants. Just app it to you and worry about everything else later.” She added that “there are real winners and losers” in business models that monetize not just convenience but “impulsivity.”

Klarna, which is preparing for an initial public offering, is among the BNPL providers that have surged into virtually all corners of the consumer economy since the pandemic, such as Afterpay, Affirm and Sezzle.

The lightly regulated financial services give users a variety of ways to pay for purchases; among the most popular are short-term loans that can typically be repaid in several interest-free installments. The companies make money by charging users for late or missed payments and merchants for the ability to offer BNPL loans at checkouts.

DoorDash said customers will be able to use Klarna for many types of purchases on its platform, not just small-dollar food deliveries. They can pay in full up front, in four installments or else later on, “such as a date that aligns with their paycheck schedules.”

A Klarna spokesperson acknowledged the online pushback but said any form of borrowing for food purchases is potentially concerning, depending on the circumstances.

“If people are in a situation where they feel like they have to put their food on credit, that’s a bad indicator for society,” the spokesperson said.

Still, many people make “a rational decision” to use BNPL services to help manage their money, the spokesperson said, adding that the new features would be available only for DoorDash purchases of at least $35 — a few dollars more than the platform’s average order as of last March. “Wherever high-cost credit cards are accepted, consumers should be able to choose a zero-interest credit product, instead.”

Indeed, industrywide data shows the short-term loans have become a routine feature of many consumers’ wallets, particularly among young adults coping with inflation and with average credit card interest rates still near 20%.

The BNPL explosion coincides with record debt levels and mounting consumer pessimism. Total household debt exceeded $18 trillion at the end of last year, according to the Federal Reserve Bank of New York, with credit card balances comprising a record $1.2 trillion of that sum. Consumer sentiment fell this month to its lowest level since 2022, and borrowers’ expectations for missing debt payments in the next three months hit their highest level since 2020, the New York Fed found.

A spokesperson for DoorDash didn’t comment on the criticism of its partnership with Klarna, saying their collaboration “provides even more flexibility, control and options.” The delivery service noted that its users can already pay with Venmo and CashApp, as well as government aid, including SNAP benefits. Klarna is already available on the grocery delivery platform Instacart, and it recently replaced rival Affirm as Walmart’s exclusive BNPL partner.

Much of the concern over BNPL has focused on the potential effects on borrowers’ credit histories, which largely still don’t reflect use of the services despite years of discussions with credit-reporting bureaus to change that. Yet a study released last month by Affirm and the credit-scoring firm FICO showed most consumers with five or more Affirm loans saw no real downside to their credit scores, some of which actually increased. And consumers consistently rate BNPL products favorably in surveys. Last year, 89% of borrowers told TransUnion they were either satisfied or very satisfied with the services.

But personal finance experts and consumer advocates say the qualms kicked up by the DoorDash-Klarna deal reflect real financial risks.

“Making four payments to cover three tacos on Tuesday sounds complicated because it is,” said Adam Rust, director of financial services at the Consumer Federation of America, an advocacy group. “I wouldn’t characterize this as a solution. It is a fintech innovation that creates problems.”

Not only might users face Klarna’s own late fees, he said, but “once customers consent to repay with automatic debits, they risk additional overdraft fees” from their banks.

Rust also highlighted recent work by the Consumer Financial Protection Bureau that remains in jeopardy or has been stopped altogether as the Trump administration defangs the agency.

The CFPB recently granted BNPL customers more ability to dispute charges and get refunds, but with staffers ordered to stop all enforcement activity last month, former employees and consumer advocates believe the rule has been rendered moot. A trade group representing fintech businesses, including some BNPL lenders but not Klarna, asked the Trump administration this month for an exemption from a law scheduled to take effect next week requiring certain lenders to verify borrowers’ ability to repay loans before they front them money.

Financial planners have long cautioned clients against budgetary strains from BNPL overuse. Even some borrowers themselves who’ve spent heavily with the services have begun warning others of their risks, saying they make it easy for cash-strapped users to rack up debts that are tough to pay off.

“Eat now, pay later is an awful trap,” Douglas Boneparth, president of Bone Fide Wealth, an advisory firm focused on millennials, wrote on X last week. “If you need to borrow to have a burrito delivered to you, you are the product. Nothing more.”

This post appeared first on NBC NEWS

Tesla stock price has bounced back in the past few days. It has risen from this month’s low of $218 this month to a high of $278, its highest point since March 17. Still, the stock has plunged by over 43% from its highest point this year, shedding billions of dollars in value. This article explains why the TSLA share price has crashed, and some of the best EV stocks to buy instead. 

Tesla stock price is at risk

The crisis at Tesla is accelerating after a report by the European Automobile Manufacturers Association showed that Tesla sales in the region crashed by 40% in February. Its sales in the region have dropped by 43% in the first two months of the year. 

Tesla’s sales have crashed, especially in Germany, after Elon Musk started talking about the country’s politics. Its European sales deviated from the industry as EV sales jumped by 16%.

Sales in other regions are not doing well too. For example, its Chinese business is struggling as it faces strong competition from the likes of BYD, Li Auto, Nio, and Xiaomi. All these companies are seeing double-digit sales growth as their demand remains robust. 

Tesla is also facing pressure in the US, where its vehicles are being vandalized because of Elon Musk’s politics and his relationship with Donald Trump. As such, there is a risk that the company’s deliveries there will keep rising. 

Tesla has other challenges. The most notable one is that it only sells four models: Model 3, Model Y, Model X, and Cybertruck. Many companies in the auto industry thrive by launching many models. 

Therefore, analysts recommend investing in other fast-growing electric vehicle stocks that are gaining market share. 

Read more: Tesla stock price forecast: 4 reasons TSLA is imploding

BYD

BYD is one of the best EV stocks to buy because of its strong market share, revenue growth, and its technology. Its most recent results show that its annual revenues jumped above $100 billion for the first time ever. These sales were about 29% higher than a year earlier, a notable thing since Tesla’s revenues largely stagnated last year. Tesla made over $98 billion in annual revenue last year.

BYD is a good EV stock to buy because of its innovation. It recently unveiled a new charging system that can move a vehicle from zero to 100% in about 5 minutes. This technology means that most EV buyers will consider it in the future.

Unlike Tesla, BYD is not a pure-play EV company. It is a big player in the hybrid vehicle industry, giving users concerned with EVs an alternative. Further, BYD is aiming to gain market share in countries in Europe and Southeast Asia. 

XPeng 

XPeng is another top EV stock to buy because of its aggressive growth and innovation. For example, the company anticipates that it will deliver between 91,000 and 93,000 vehicles this quarter, representing a 326% annual growth rate. 

The most recent numbers showed that its quarterly revenue rose by 60% to RMB 16.1 billion, while its gross margins expanded to 14.4% from 8.8% a year earlier. 

XPeng plans to launch more vehicle models to gain market share. It also plans to launch a flying car in 2026, a move that will diversify its revenue. 

Nio

Nio stock | Source: TradingView

Nio is another top EV stock to buy even as its shares continues to deteriorate. Results released last week showed that it delivered 72,689 vehicles during the quarter. Most of these vehicles came from its premium brand, while ONVO sold almost 20,000 vehicles. 

Nio’s quarterly revenue rose by 15.2% in the last quarter to $2.6 billion, while its gross margin expanded to 11.7%. The company expects to deliver between 41,000 and 43,000 vehicles this quarter, representing a quarterly growth rate of 36.4%. It sees its revenues rising by 24.8% this year. 

There are odds that the Nio stock price will rebound later this year. As shown above, the Nio stock price has formed a quadruple bottom with a neckline at $7.72. That is a sign that the stock will rebound later this year.

Read more: Nio stock price forecast: Here’s why it could surge 270% in 2025

The post Avoid the Tesla stock: buy Xpeng, BYD, Nio shares instead appeared first on Invezz

Electric vehicle stocks have been mixed this year, with Chinese brands like XPeng, BYD, and Li Auto doing well. American brands like Tesla, Rivian, and Lucid remained under pressure as their growth slows. This article explores how EV companies like Mullen Automotive (MULN), Polestar (PSNY), and Faraday Future (FFIE) are fairing this year.

Mullen Automotive (MULN)

Mullen Automotive is an electric vehicle company that operates in the United States. It is a fallen angel whose stock has crashed by almost 100% and its market cap dropping below $1 million. 

Mullen’s business has struggled because of weak demand and balance sheet. The most recent results showed that its revenue for the three months to December stood at $2.9 million. This happened as the company invoiced for 58 vehicles valued at $4.4 million and then received $6 million.

The company has a long record of deferring its revenue until invoices are paid and the return cause has been nullified. 

Mullen Automotive is burning millions of dollars. Its net loss in the fourth quarter stood at over $114 million. Most of these losses, or $91 million, were non-cash expenses. 

A company losing all that money can survive and thrive only if it has a solid balance sheet. Unfortunately for Mullen, it has one of the worst balance sheets in the US. It ended the quarter with just $2.7 million in cash, including restricted cash. Worse, it has a working capital of minus $186.2 million. Therefore, it is hard to imagine how the company continues as a viable going concern over time.

Read more: Mullen Automotive stock has imploded: can MULN recover?

Mullen Automotive vs Faraday Future vs Mullen Automotive

Faraday Future (FFIE)

Faraday Future is another struggling EV stock that has existential challenges. Its stock has crashed by over 73% in the last 12 months, giving it a market cap of over $100 million. 

Faraday Future is working on revamping its business. Last year, it launched a software business that will see it sell its software to Chinese companies. It also launched Faraday X, a brand that targets the mass market. Its goal is to start manufacturing the vehicle by the end of the year.

The challenge, however, is that Faraday’s balance sheet is not as supportive as Mullen Automotive. It raised $30 million in the third quarter and $41 million this week. These funds are not enough for a company that is losing over $25 million a quarter. Therefore, there is a risk that Faraday will go bankrupt this year or soon. 

Polestar (PSNY)

Polestar stock price has moved sideways in the past few months. It has remained between the key support and resistance levels at $0.9865 and $1.25 in this period. The current price is about 43% below the highest point in 2024.

Polestar’s business is also struggling as its unit sales continue falling. It sold 12,548 vehicles in the third quarter, down by 8% from the same period a year earlier. Its revenue dropped by 10% to $551 million, leading to a net loss of $323 million. 

Polestar’s performance is notable since many EV companies, especially those focusing on the Chinese market, are seeing a double-digit growth rate. The company attributed its slowdown weaker sales of its Polestar 2 brand and higher discounts. It also experienced a drop in gross margins. 

Worse, Polestar’s balance sheet is not supportive. It incinerated $450 million in the last quarter, leaving it with $501 million in cash. To address that, it secured a $800 million term facility and is raising $400 million more. Some of these funds will be used to pay other loans. The company also announced a new CEO to lead its turnaround.

Read more: Are Polestar and Lotus Technology stocks good contrarian buys?

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