Lennar’s latest earnings show how affordability pressures are reshaping homebuilding. Lennar ( LEN ), one of the largest U.S. homebuilders, is under pressure after fourth-quarter results revealed sharply lower profitability and a cautious outlook for 2026. While demand hasn’t disappeared, the company’s results suggest the housing market has entered a tougher, lower-margin phase. Key Points Lennar beat revenue expectations but missed earnings as margins fell sharply Heavy incentives and lower home prices are weighing on profitability Management’s 2026 outlook points to continued pressure in housing What Drove Lennar’s Q4 Earnings Miss? Lennar reported fourth-quarter revenue of about $9.4 billion, slightly above expectations, supported by a 4% increase in home deliveries and an 18% jump in new orders. However, earnings told a different story. Adjusted earnings per share came in at $2.03, well below the $2.21 analysts expected. The main issue was margin compress...

A major all-stock deal highlights consolidation and AI-driven growth in education. Online education companies Coursera ( COUR ) and Udemy ( UDMY ) are joining forces in a landmark all-stock merger that underscores how the job market and AI adoption are reshaping workforce training. The deal aims to create a global learning platform better positioned for enterprise and skills-based demand. Key Points Coursera will combine with Udemy in an all-stock deal valuing the firm at about $2.5 billion Udemy shareholders receive a 26% premium and will own roughly 41% of the combined company The merger targets enterprise learning and AI-driven upskilling as consumer demand cools Why Are Coursera and Udemy Merging Now? The merger comes as online education companies face slower growth following the pandemic-era boom. Consumer enrollment has cooled, competition has intensified, and investors have grown more selective. By combining, Coursera and Udemy aim to gain scale, reduce c...

A softer labor market is changing how investors view stocks and interest rates. The U.S. job market weakened noticeably in late 2025, and those shifts are now influencing how investors think about the stock market as a whole. Rising unemployment, slower hiring, and mounting layoff announcements are forcing a reset in expectations for economic growth, interest rates, and where opportunities may lie for investors. Key Points The unemployment rate rose to 4.6%, the highest level since 2021 Job growth has stalled, with recent months showing net job losses Markets are increasingly focused on potential interest rate cuts in 2026 What’s Happening in the Job Market Right Now? The labor market has entered what economists describe as a “low-hire, low-fire” phase. Hiring has slowed sharply, layoffs are creeping higher, and the unemployment rate unexpectedly climbed to 4.6% in November. While that level is still modest by historical standards, it marks the weakest labor con...

A long-term Amazon partnership gives investors fresh confidence in Affirm’s outlook. Shares of Affirm Holdings ( AFRM ) surged after the company confirmed a major milestone: the renewal of its buy now, pay later partnership with Amazon through 2031. The update, shared during an investor meeting, helped push the stock toward recent highs and refocused attention on Affirm’s long-term growth story. Key Points Affirm extended its Amazon partnership through January 2031 on largely unchanged terms Shares jumped as investors welcomed stability and long-term visibility Strong revenue growth, improving profitability, and steady credit trends support the bullish case Why Is Affirm Stock Moving Higher? Affirm stock rallied after executives confirmed that its partnership with Amazon ( AMZN ) has been extended for another five years. While management did not disclose specific contract details, they described the renewal as a “win-win” that keeps Affirm deeply integrated into...

Investors weigh a bold cybersecurity bet against near-term risks. Shares of ServiceNow ( NOW ) fell sharply after reports surfaced that the enterprise software company is in advanced talks to acquire cybersecurity startup Armis for up to $7 billion. The potential deal, combined with a fresh analyst downgrade, has put the spotlight on ServiceNow’s growth strategy and valuation. Key Points ServiceNow stock dropped nearly 12% after reports of a possible $7 billion Armis acquisition The deal would be ServiceNow’s largest ever and a major expansion into cybersecurity Analysts are split, with concerns about pricing pressure and AI-driven changes in IT hiring Why Is ServiceNow Stock Falling Today? ServiceNow shares slid after news broke that the company is close to acquiring Armis, a fast-growing cybersecurity firm that protects connected devices from cyber threats. The reported $7 billion price tag is large by any measure and would represent ServiceNow’s biggest acq...

Tesla’s latest autonomy update is reigniting investor optimism around self-driving. Tesla, Inc. TSLA shares climbed to their highest levels in nearly a year after CEO Elon Musk confirmed the company is testing robotaxis without safety monitors, signaling meaningful progress toward fully autonomous driving. Key Points Tesla is testing robotaxis with no safety monitors or occupants, a major autonomy milestone. TSLA rose about 4% as investors cheered progress on self-driving technology. Much of Tesla’s $1.5 trillion valuation is tied to autonomy and robotics expectations, not just EV sales. Tesla Takes Another Step Toward Fully Driverless Cars Tesla revealed that testing is now underway for robotaxis operating without a human safety monitor in the front passenger seat—and in some cases, with no one inside the vehicle at all. This marks a shift from earlier testing in Austin, Texas, where modified Model Y vehicles operated with geo-fenced routes and onboard safety ...

Rivian ( RIVN ) unveils a custom AI chip and new autonomy models as investors take notice. Rivian Automotive is taking a major step toward in-house self-driving technology with a new AI chip and autonomy platform that sparked a sharp rally in the stock. Key Points Rivian introduced a custom AI chip and new autonomous driving models designed to reduce reliance on suppliers. The stock jumped more than 14% as Wall Street praised its AI-first approach. The company aims to deliver hands-free and eventually “eyes-off” Level 4 autonomy by 2026–2027. Rivian Bets Big on AI With Custom Silicon Rivian launched its new Rivian Autonomy Processor (RAP1), a custom-designed AI chip built to power its Autonomy+ system. This move shifts the company away from prior reliance on outside chips such as Nvidia (NVDA, https://blog.sharpertrades.com/p/nvda.html), giving Rivian more control over performance, costs, and future innovation. The company emphasized that the chip enables higher-...