reasons

Both sides say democracy at stake with Prop. 50, for different reasons

If the ads are any indication, Proposition 50 offers Californians a stark choice: “Stick it to Trump” or “throw away the constitution” in a Democratic power grab.

And like so many things in 2025, Trump appears to be the galvanizing issue.

Even by the incendiary campaigns California is used to, Proposition 50 has been notable for its sharp attacks to cut through the dense, esoteric issue of congressional redistricting. It comes down to a basic fact: this is a Democratic-led measure to reconfigure California’s congressional districts to help their party win control of the U.S. House of Representatives in 2026 and stifle President Trump’s attempts to keep Republicans in power through similar means in other states.

Thus far, the anti-Trump message preached by Proposition 50 advocates, led by Gov. Gavin Newsom and other top Democrats, appears to be the most effective.

Supporters of the proposal have vastly outraised their rivals and Proposition 50, one of the most expensive ballot measure campaigns in state history, leads in the polls.

“Whenever you can take an issue and personalize it, you have the advantage. In this case, proponents of 50 can make it all about stopping Donald Trump,” said former legislative leader and state GOP Chair Jim Brulte.

Adding to the drama is the role of two political and cultural icons who have emerged as leaders of each side: former President Obama in favor and former Gov. Arnold Schwarzenegger against, both arguing the very essence of democracy is at stake.

Schwarzenegger and the two main committees opposing Proposition 50 have focused on the ethical and moral imperative of preserving the independent redistricting commission. Californians in 2010 voted to create the panel to draw the state’s congressional district boundaries after every census in an effort to provide fair representation to all state residents.

That’s not a political ideal easily explained in a 30-section television ad, or an Instagram post.

Redistricting is a “complex issue,” Brulte said, but he noted that “the no side has the burden of trying to explain what the initiative really does and the yes side gets to use the crib notes [that] this is about stopping Trump — a much easier path.”

Partisans on both sides of the aisle agree.

“The yes side quickly leveraged anti-Trump messaging and has been closing with direct base appeals to lock in the lead,” said Jamie Fisfis, a political strategist who has worked on many GOP congressional campaigns in California. “The partisanship and high awareness behind the measure meant it was unlikely to sag under the weight of negative advertising like other initiatives often do. It’s been a turnout game.”

Obama, in ads that aired during the World Series and NFL games, warned that “Democracy is on the ballot Nov. 4” as he urged voters to support Proposition 50. Ads for the most well-funded committee opposing the proposition featured Schwarzenegger saying that opposing the ballot measure was critical to ensuring that citizens are not overrun by elected officials.

“The Constitution does not start with ‘We, the politicians.’ It starts with ‘We, the people,’” Schwarzenegger told USC students in mid-September — a speech excerpted in an anti-Proposition 50 ad. “Democracy — we’ve got to protect it, and we’ve got to go and fight for it.”

California’s Democratic-led Legislature voted in August to put the redistricting proposal that would likely boost their ranks in Congress on the November ballot. The measure, pushed by Newsom, was an effort to counter Trump’s efforts to increase the number of GOP members in the House from Texas and other GOP-led states.

The GOP holds a narrow edge in the House, and next year’s election will determine which party controls the body during Trump’s final two years in office — and whether he can further his agenda or is the focus of investigations and possible impeachment.

Noticeably absent for California’s Proposition 50 fight is the person who triggered it — Trump.

The proposition’s opponents’ decision not to highlight Trump is unsurprising given the president’s deep unpopularity among Californians. More than two-thirds of the state’s likely voters did not approve of his handling of the presidency in late October, according to a Public Policy Institute of California poll.

Trump did, however, urge California voter not to cast mail-in ballots or vote early, falsely arguing in a social media post that both voting methods were “dishonest.”

Some California GOP leaders feared that Trump’s pronouncement would suppress the Republican vote.

In recent days, the California Republican Party sent mailers to registered Republicans shaming them for not voting. “Your neighbors are watching,” the mailer says, featuring a picture of a woman peering through binoculars. “Don’t let your neighbors down. They’ll find out!”

Tuesday’s election will cost state taxpayers nearly $300 million. And it’s unclear if the result will make a difference in control of the House because of multiple redistricting efforts in other states.

But some Democrats are torn about the amount of money being spent on an effort that may not alter the partisan makeup of Congress.

Johanna Moska, who worked in the Obama administration, described Proposition 50 as “frustrating.”

“I just wish we were spending money to rectify the state’s problems, if we figured out a way the state could be affordable for people,” she said. “Gavin’s found what’s working for Gavin. And that’s resistance to Trump.”

Newsom’s efforts opposing Trump are viewed as a foundational argument if he runs for president in 2028, which he has acknowledged pondering.

Proposition 50 also became a platform for other politicians potentially eyeing a 2026 run for California governor, Sen. Alex Padilla and billionaires Rick Caruso and Tom Steyer.

The field is in flux, with no clear front-runner.

Padilla being thrown to the ground in Los Angeles as he tried to ask Homeland Security Secretary Kristi Noem about the Trump administration’s immigration policies is prominently featured in television ads promoting Proposition 50. Steyer, a longtime Democratic donor who briefly ran for president in 2020, raised eyebrows by being the only speaker in his second television ad. Caruso, who unsuccessfully ran against Karen Bass in the 2022 Los Angeles mayoral race and is reportedly considering another political campaign, recently sent voters glossy mailers supporting Proposition 50.

Steyer committed $12 million to support Proposition 50. His initial ad, which shows a Trump impersonator growing increasingly irate as news reports showing the ballot measure passing, first aired during “Jimmy Kimmel Live!” Steyer’s second ad fully focused on him, raising speculation about a potential gubernatorial run next year.

Ads opposing the proposition aired less frequently before disappearing from television altogether in recent days.

“The yes side had the advantage of casting the question for voters as a referendum on Trump,” said Rob Stutzman, a GOP strategist who worked for Schwarzenegger but is not involved with any of the Proposition 50 campaigns. “Asking people to rally to the polls to save a government commission — it’s not a rallying call.”

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Reasons to be cheerful at last? Ruben Amorim’s year in charge at Man Utd

Had Amorim’s one-year anniversary been marked on 1 October, judgement would have been almost exclusively negative.

At that point, only Tottenham of the 17 teams who remained in the Premier League throughout his tenure had fewer points than United’s 34 from 33 games. After three successive victories, Wolves and West Ham are also behind them now.

On Thursday, for the first time, Amorim was shortlisted for manager of the month. In his news conference he was asked about the possibility of Champions League qualification.

If they win at the City Ground, United will go second.

Even if it is only for a matter of hours, it will be the first time they have been that high, mid-season, since a victory at West Ham in September 2021, immediately before Solskjaer’s world unravelled.

Amorim warned of reading too much into his side’s current form. But three successive wins coupled with Sir Jim Ratcliffe’s ‘three-year’ comments, means a chronical of his first year does not read like an epitaph.

A month ago, the private stinging rebuke of one critic close to the dressing room was that Amorim’s enthralling news conferences were all he was good at.

Yet, while box office in their delivery, it is the part of the job he likes the least. He is emotional, which shows itself after games. But apart from solemn moments, when he speaks on behalf of the club on matters of importance, his words are not rehearsed.

His jovial nature is at odds with his intense and serious persona on the training ground – and his rather detached presence at times.

Last season, when media were allowed to observe the first 15 minutes of training before European games, it was noticeable that Amorim watched the routine sprints and rondos on his own, from a different pitch, sometimes 50 yards away.

This, it is explained, is partly because he has no role to play but also because he is using the time to think about the messaging he will deliver in the main session.

Filmed footage of his first training session last November shows Amorim telling midfielder Kobbie Mainoo exactly how many strides he needed to move after laying a pass off, then where to open his body out to create maximum passing angles.

This summer, sources said there were points where he had two players taking up the same positions in training, before running through different scenarios to ensure they moved into the right area of the pitch.

While this may seem peculiar it does make sense given Amorim knows which players fit into which slots in his team.

That first recorded session also showed Amorim working on speed in transition, especially defensive turnovers.

Finally, with gaps between games allowing full preparation weeks, this reinforced messaging is paying off. Awful days at Grimsby and Brentford are outliers rather than the norm.

United officials say now, as they have done consistently throughout the past 12 months, there has never been an internal conversation about Amorim’s future. The club’s hierarchy, from Ratcliffe down, is supportive. The aim for the season remains European qualification.

But have there been times when Amorim himself wondered if he would get this far?

“It’s hard to say,” he said. “There were some moments that were tough to deal with, to lose so many games, was so hard for me because this is Manchester United.

“Putting all the attention on Europa League and not winning, was massive.

“So, I had some moments that I struggled a lot, and was thinking maybe it’s not meant to be. Today is the opposite. Today I feel – and know – it was the best decision in my life, and I want to be here.”

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3 Reasons Not to Open a CD in October 2025, Even With Rates Around 4.00%

Certificates of deposit (CDs) might seem like a good place to keep your money, especially with interest rates on the decline. But the truth is that in most cases, your cash is better off elsewhere.

If you’re looking for flexibility and long-term growth — or if you’re carrying high-interest debt — there are much better uses for your money. Here’s what to know.

1. High-yield savings accounts are more flexible, with similar returns

Right now, our favorite high-yield savings accounts (HYSAs) are paying APYs that rival top CDs — and you don’t need to lock up your money to earn them.

Just like traditional savings accounts, HYSAs let you access your money anytime, and they’re FDIC-insured up to $250,000. The best banks also don’t charge monthly fees or have account minimums.

Add it all up, and it’s pretty clear: HYSAs are the perfect place to store your emergency fund and short-term savings.

Want to earn a high APY while keeping access to your cash? See our full list of the best high-yield savings accounts available now.

2. Stocks offer more long-term growth

For money you plan on investing for the long haul, a CD isn’t the best option, either.

Consider this: Over the last 30 years, the average return of the U.S. stock market was 9% per year, as measured by the S&P 500 Index — more than double the rate of the best CDs.

CDs might sound appealing because they have a guaranteed return — but still, that return is limited. Over the course of years and decades, something like an S&P 500 index fund will almost definitely earn more.

Ready to get started? See our list of the best online brokerages today.

3. Paying off debt is a better use of your cash

Finally, if you have high-interest credit card debt, even the best CDs can’t help you put a dent in it.

That’s because the average credit card APR is around 21%, according to the Federal Reserve. Saving with a CD while carrying high-interest debt is always a losing bet.

Make sure to pay off any and all debt before you think about a CD. If you owe credit card debt with a 21% APR, you could think of it as getting a guaranteed 21% return for paying it off.

Once your high-interest debt is gone and your emergency fund is in place, then you can start looking into CDs or other savings tools.

Want an easier way to pay off debt? Check out our picks for the best balance transfer cards available now.

CDs can be smart — sometimes

CDs can still be a solid way to save in the medium term. But only if you:

  • Have no high-interest debt
  • Have three to six months of expenses in a savings account
  • Are already investing in stocks long-term

Does that sound like you? Compare the best CD rates now to start saving today.

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3 Reasons Why You Should Buy Alphabet Stock Before Oct. 29

Alphabet’s stock has had an impressive run over the past few months.

Earnings season is upon us, and it’s possible that some stocks could make some large movements following their quarterly announcements. One that I’ve got my eye on that has significant momentum is Alphabet (GOOG 0.86%) (GOOGL 0.82%). Since reporting Q2 earnings on July 23, Alphabet has received several positive developments, including a judge’s decision not to seek a breakup of Alphabet’s core business.

The good news sent shares soaring, with the stock up over 30% since reporting Q2 earnings. That’s a monstrous move for a large company like Alphabet (it’s currently the fourth-largest company in the world and recently crossed the $3 trillion valuation mark for the first time), but can it continue?

I think management’s Q3 outlook could be another catalyst for the stock to go higher, and buying it before it reports earnings on Oct. 29 is a smart move.

1. Persistent advertising growth

Throughout most of 2025, the consensus is that Alphabet’s primary property, the Google Search engine, was in trouble. Everyone was worried about how it would fare against generative AI competition, but it turns out it will be just fine. Google’s revenue growth has been resilient even in the face of rising competition from generative AI models, with its revenue growing at a 12% pace in Q2.

Part of the reason for this growth is that Google has incorporated AI search overviews into every Google search. This results in a hybrid search experience, combining traditional search with a generative AI-powered one. Management also commented that the AI search overview has about the same monetization as a standard search, so it’s not losing any money on this switch either.

If Alphabet reports growing Google Search revenue during this quarter, it will confirm that Google is continuing to excel even when everyone assumed that it couldn’t. With Alphabet’s core business doing well, I think it makes the stock a great buy.

2. Rising cloud computing demand

Another exciting area for Alphabet is its cloud computing division, Google Cloud. Cloud computing is one of the fastest-growing industries around, and is benefiting from a general migration to the cloud alongside rising AI demand. Google Cloud has become a great partner in this realm and has won business from OpenAI (the makers of ChatGPT) and Meta Platforms (META 0.82%).

While Google Cloud isn’t as large as some of its competitors, it’s growing at a healthy rate, with revenue rising 32% year over year in Q2. It’s also dramatically improving its operating margin, increasing from 11% last year to 21% this year. Investors are going to want to see this trend continue, and if it does, the stock could respond positively as a result.

3. Alphabet has a reasonable valuation

Lastly, Alphabet is still valued at a discount to its peers. Despite having an impressive run over the past few months, Alphabet still trades at a discount to all of its big tech peers from a forward price-to-earnings (P/E) standpoint.

AMZN PE Ratio (Forward) Chart

AMZN PE Ratio (Forward) data by YCharts

However, after its monstrous run, it’s extremely close to swapping places with Meta Platforms. Still, Alphabet is trading at a discount to others like Microsoft (MSFT 0.50%) and Apple (AAPL 2.04%). If all companies had an equal valuation, Alphabet would actually be the world’s largest because it generates the most net income out of all of them.

AMZN Net Income (TTM) Chart

AMZN Net Income (TTM) data by YCharts

However, that’s not the way the stock market works, but it does give Alphabet an edge in future investments, as it has significant cash flows that it can buy back stock with, invest in AI, or potentially acquire a business.

Regardless, Alphabet is a highly profitable business with a reasonable valuation that’s growing at a healthy pace. I still think there’s plenty of room for the stock to run, and another catalyst could arrive when it reports earnings on Oct. 29. By buying now, investors can ensure that they get in on a potential pop following the earnings announcement.

Keithen Drury has positions in Alphabet and Meta Platforms. The Motley Fool has positions in and recommends Alphabet, Apple, Meta Platforms, and Microsoft. The Motley Fool 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.

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4 Reasons to Buy Tesla Stock and 1 Reason Not To

Shares of the electric carmaker sold off sharply Thursday and Friday despite record deliveries and powerful catalysts on the horizon.

After sliding sharply on Thursday and Friday, Tesla (TSLA -1.41%) is back in focus ahead of its next earnings report, scheduled for Oct. 22. With a combination of record quarterly deliveries, a sharp sell-off, and an earnings report on the horizon, it’s a good time to look closely at the growth stock. Is the pullback a buying opportunity?

The electric vehicle (EV) maker, which also sells batteries and energy-storage systems and is increasingly leaning into software and services with its Full Self-Driving (Supervised) driver-assistance technology and its autonomous ride-sharing robotaxi operation, has some massive catalysts ahead. But it may have to endure a tough fourth quarter first, making the question of whether shares are a buy a difficult one. The stock’s high valuation makes the decision even harder.

With this backdrop in mind, here are four reasons investors might want to buy the stock and one important reason they may want to avoid it.

A golden bull facing a laptop.

Image source: Getty Images.

A return to growth in its core automotive business

Tesla delivered about 497,100 vehicles in the third quarter, a new quarterly record and, importantly, a return to year-over-year growth of about 7% versus the same period last year. That reversal follows two straight quarters of declines: First-quarter 2025 deliveries fell 13% year over year to 336,681, and second-quarter 2025 deliveries slipped 13% to 384,122. Together, these figures frame Q3 not just as a huge sequential jump but also as a clear break in a tough 2025 trend.

Even though the rebound was helped by the expiration of a key $7,500 U.S. electric vehicle credit, it’s worth noting that third-quarter deliveries were far above analysts’ consensus forecast for only about 448,000 vehicles.

Energy is quietly becoming a substantial catalyst

Alongside vehicles, Tesla’s fast-growing energy storage business took another major step forward in Q3. Tesla deployed 12.5 gigawatt hours (GWh) of storage in the third quarter, its highest on record and well above both the 9.6 GWh reported in the second quarter of 2025 and the 6.9 GWh posted in the third quarter of 2024.

This key segment is now generating substantial gross profit for the company and is likely to continue growing as a percentage of overall revenue.

Fading credits may sting, but product and pricing help

The $7,500 federal electric vehicle credit expired on Sept. 30 — a change that likely pulled some U.S. demand into Q3 and could weigh on Q4. But there are two offsets worth watching. First, Tesla’s sweeping post-COVID-19 price cuts have made its lineup far more accessible than a few years ago.

Second, the recently overhauled Model Y, which Tesla is calling Juniper, gives the company a timely hero product to market into the holidays. While these may not be enough to fully offset the loss of the electric vehicle incentive, they are key catalysts that can help the company begin building momentum going into 2026.

A more affordable model is coming

More importantly, the company has a more affordable model coming soon. Indeed, Tesla said in its second-quarter update that it produced its first units of the new model in June, with volume production planned before the year ends. While comments from Tesla CEO Elon Musk in the company’s second-quarter earnings call suggest this may simply be a cheaper version of the new Model Y, it’s still worth getting excited about. A lower-priced car could help offset the loss of the now-expired federal credit.

If the company releases a meaningfully lower-priced model with a compelling range and features, the addition could significantly expand Tesla’s addressable market next year.

A new, higher-margin revenue stream

And don’t forget what is probably Tesla‘s most important catalyst: a recently launched limited robotaxi pilot program in Austin. It is early for the autonomous ride-sharing program, and a cautious rollout and regulatory constraints mean the near-term financial impact is likely small, but this could morph into a major profit stream for Tesla over time.

If the service scales and more owners opt into Full Self-Driving (Supervised), software and services could grow as a share of revenue. This will likely be a positive for margins and valuation over time. Additionally, growing buzz about robotaxi and Tesla’s Full Self-Driving (Supervised) software could help lure in new Tesla buyers, helping accelerate sales growth.

The reason not to buy? Valuation still leaves little room for error

Even after the sell-off, the stock trades at more than 250 times earnings as of this writing. A price-to-earnings (P/E) ratio like this makes the S&P 500‘s P/E of about 26 look cheap — and it leaves almost no room for error. The valuation arguably already prices in substantial progress on autonomy, software monetization, and lower-priced vehicles while also expecting energy to keep compounding. Ultimately, shares could take a beating if Tesla drops the ball in any way.

Despite the company’s powerful catalysts, the bear case (valuation) is simpler and, for now, heavy enough to matter. Considering all these bullish reasons to buy shares in the context of the stock’s high valuation, investors should proceed with caution. For investors convinced by Tesla’s long-term roadmap, a small position could make sense with the expectation of volatility and the discipline to add only if shares retreat further. Everyone else may prefer to wait for a potential further decline in the share price or for fundamentals to catch up.

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4 Reasons You Could Regret Your Early Social Security Claim

If you claim Social Security early, you could find yourself wishing you had made a different choice as you cope with smaller monthly benefits.

You’ll make many decisions when preparing for retirement. Choosing when to file for Social Security benefits is one of the most important of those choices.

You have a long period when you could file for benefits, as you can claim as early as 62, but can also wait and increase the amount of your benefits until age 70. Picking the right moment within that eight-year timespan helps you maximize your income and build a more secure retirement.

For many people, an early claim seems like the obvious answer since you can start collecting right away and enjoying the benefits you’ve worked hard to earn all your life. In reality, though, claiming at a young age — and especially before your designated full retirement age — could be something you end up really regretting.

Here’s why.

Two adults looking at financial paperwork.

Image source: Getty Images.

An early claim limits your ability to work

If you start receiving Social Security before your designated full retirement age (FRA), your decision could impact your ability to work because when you earn too much before FRA, your benefit checks are reduced or even eliminated.

For example, in 2025, if you won’t reach FRA during the entire year, then once you earn more than $23,400, you’ll lose $1 in benefits for every $2 earned above that limit. This could quickly lead to your Social Security checks disappearing entirely, since the Social Security Administration withholds full checks when you go above the limit.

This rule prevents double-dipping of benefits and a paycheck in the years before you reach FRA, and it can lead to a lot of hassle if you’re trying to track earnings to avoid losing benefits.

Eventually, you do get credit if checks are withheld, as your benefit is recalculated at your full retirement age to account for the missed money — but the process of slowly recovering the benefits you missed out on due to exceeding the work limits can be very frustrating.

You’ll take a big benefits cut that is permanent

Since you have an eight-year window to claim Social Security, there are rules in place to try to equalize out lifetime benefits so you get the same amount of money no matter when you claim.

One of those rules is that if you claim Social Security benefits before FRA, benefits are reduced by early filing penalties. But if you wait until after FRA, benefits are increased due to delayed retirement credits.

The penalties and credits apply monthly, as you’ll lose 5/9 of 1% of your standard benefit for each of the first 36 months you receive a check ahead of your FRA. If you claim even sooner, you lose an additional 5/12 of 1% for any of the prior months.

The monthly penalties add up to an annual 6.7% reduction from your standard benefit for years one, two, and three. For years four and five when you were collecting early Social Security benefits, the reduction in benefits is 5% annually. This means that a claim at 62 instead of at an FRA of 67 results in a 30% cut to benefits overall. That cut is permanent, and benefits will always be 30% smaller than they would have been had you waited to claim.

If you delayed beyond FRA until 70 instead, though, you’d have increased your benefits by 2/3 of 1% or 8% per year and received more benefits instead of smaller checks.

You’ll shrink your survivor benefits

You are not the only one who could regret your early Social Security claim. Your spouse could as well. When you die, your spouse either gets to keep receiving their own benefit or keep receiving yours. If you were the higher earner in your family and your Social Security benefit is a lot bigger, then keeping your benefit would be better for your surviving spouse.

The problem is, if you claimed Social Security ahead of schedule, you’d have shrunk your benefit — so your surviving spouse would be left with a smaller survivor benefit than they could have had. Since living on a single Social Security check instead of two is hard, your spouse could end up really wishing you hadn’t claimed early.

You stand a good chance of missing out on lifetime income

Finally, research has shown that around 7 in 10 retirees would find themselves with more lifetime income if they delay benefits until 70 instead of claiming at a younger age. If your goal is to maximize the lifetime income Social Security offers so you don’t have to rely as much on your 401(k) or other retirement plans, then you’ll want to avoid shrinking your lifetime income.

That’s especially true as Social Security is a reliable source of funds since there are cost-of-living adjustments built in that help you avoid losing buying power due to inflation.

Ultimately, an early claim is simply not the right option for many. When you are making your retirement plans, think seriously about whether you should prepare to try to put off your Social Security claim. If so, have a plan to do that, such as living on retirement savings until the day comes when you can claim a large benefit and set yourself and your spouse up for a more secure future.

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2 Reasons to Buy Rivian Stock Before Nov. 6

Rivian is looking at a potentially major transformation in its business over the coming months.

Rivian Automotive (RIVN 0.85%) is expected to announce earnings in early November. If you’ve been eyeing this electric vehicle stock, now may be a key moment to buy it at a discount. That’s because Rivian is about to reach an important growth catalyst. This will perhaps be the biggest in its history. Let’s learn what that is and whether now it a good time to invest in the EV maker. 

Expect important updates to arrive in early November

What exactly should investors expect to be revealed next month? Most importantly, we should get our clearest update yet on Rivian’s upcoming affordable models: The R2, R3, and R3X.

I’ve written before how important it is for an electric car company to introduce affordable models. A big majority of car buyers are looking to spend less than $50,000 on their next vehicle purchase. And now that U.S. federal tax credits have been eliminated for EV purchases, offering low-cost models is more important than ever.

Right now, Rivian has just two models on the market, both of which can easily cost $100,000 or more with certain options. This high price point dramatically reduces the company’s total addressable market. But the upcoming models — the R2, R3, and R3X — are all expected to cost less than $50,000, making Rivians accessible to tens of millions of new buyers.

When Tesla introduced its affordable models — the Model 3 and Model Y — growth exploded. I expect the same to occur for Rivian. That’s great news for investors, since Rivian’s revenue growth rates have essentially flatlined over the last 18 months. This has caused the company’s price-to-sales ratio to fall to just 3.1. Tesla, for comparison, trades at nearly 17 times sales. If Rivian’s new models follow the growth trajectory of Tesla’s affordable models, this valuation gap could narrow quickly.

Earlier this year, Rivian management reaffirmed that the R2 would begin production in early 2026 as planned. That was an important update, since the EV manufacturing industry has historically been overly optimistic about production timelines. Last week, hundreds of Rivian R2 test vehicles were spotted on public roads, with the company noting that these vehicles were generating real-world data and validating charging capabilities ahead of launch.

It’s possible that the Rivian R2 will begin production before the first earnings announcement of 2026, which should occur sometime next February. If so, that means this upcoming announcement in November could generate clear guidance from management that adds momentum to the stock. But there’s one other reason to buy ahead of next month’s earnings call.

Workers on an EV manufacturing line.

Image source: Getty Images.

Can Rivian stay profitable without key subsidies?

Unlike Tesla, Rivian has yet to achieve net profitability. But this year, the company did achieve positive gross margins for the first time. This signaled to the market that, long term, the company is capable of producing vehicles at a profit. There’s just one problem. A lot of this gross profit was realized through selling automotive regulatory credits — credits earned from the U.S. government for producing low-emissions vehicles that can essentially be sold at a 100% profit.

In May, for example, Rivian posted a $206 million gross profit. Roughly half of that gross profit, however, included regulatory credit sales. With those credits eliminated for 2026, it will be very interesting to track Rivian’s gross profit levels. In August, the company slipped back into negative gross profits.

It’s possible that good news on the R2 production front will be offset by a negative update regarding profitability. But if we get positive news on both factors, we could finally see Rivian shares move significantly higher following more than two years of share price stagnation.

Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.

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SoundHound AI Stock Jumped 23.5% in September — for All the Wrong Reasons

SoundHound AI stock gained 23.5% last month despite mixed reactions to company news. Is it time to jump aboard this AI bandwagon?

Shares of SoundHound AI (SOUN 0.31%) rose 23.5% in September 2025, according to data from S&P Global Market Intelligence. It wasn’t a smooth ride for the artificial intelligence (AI) expert, with several big jumps and a couple of painful drops along the way — but it’s hard to complain about a monthly gain of more than 20%.

The meme stock crowd is back in action

Unfortunately, it looks like SoundHound AI is sliding back into the meme stock phenomenon again.

The big swings in September’s stock chart seem more closely correlated to online discussion volumes than to broader stock market trends — and the spikes didn’t really line up with SoundHound AI’s handful of business-related announcements. It’s an “all talk and no action” sort of thing.

I mean, the company isn’t sitting on its hands. Its business moves just aren’t inspiring bullish price moves. Social media posts are doing more of that work.

Let’s look at the three press releases SoundHound AI shared last month:

  • On Sept. 4, the company released a custom AI agent for Primary Health Solutions, a regional healthcare network near Cincinnati and Dayton, Ohio. The Denise agent delivers quick answers to common questions, online or over the phone. SoundHound AI’s stock rose 7% that day — not too shabby!

  • Sept. 9 saw a 5.4% stock price drop as SoundHound AI acquired Interactions, an agentic AI specialist. This deal should boost the company’s operating profits from the get-go and expand its market reach into new sectors such as retail management and insurance. For what it’s worth, the S&P 500 (^GSPC 0.34%) index rose 0.3% the same day.

  • Finally, Red Lobster ordered a systemwide SoundHound AI solution for its phone ordering services on Sept. 23. This announcement should have started a victory march at SoundHound AI’s headquarters, but the stock didn’t move at all on the news. Instead, a 13% price drop followed over the next two market days. The S&P 500 held steady across this period.

The market reaction on Sept. 4 made sense, but I see the opposite effect around the (arguably more significant) announcements that followed.

A smiling person speaking into a smartphone held up front.

Image source: Getty Images.

Great company, but the stock valuation is getting silly again

The meme stock action kind of makes sense. I understand that investors are getting excited about SoundHound AI’s high-quality voice controls and related AI tools. I’m convinced that the company has a bright future, and the shares I’ve been holding since the spring of 2024 should serve me well in the long run.

But the recent market action is too optimistic. People are jumping to conclusions, long before SoundHound AI gets a chance to prove its actual market value. On Oct. 1, the stock is up 238% over the last year and 424% in three years. It’s also trading at the nosebleed-inducing valuation of 50 times trailing sales. Profit-based metrics don’t make sense, because the company is deeply unprofitable so far.

So I’m holding on to my existing SoundHound AI shares for the long haul, but I’m not tempted to buy any more at these lofty prices. Check again when this meme-stock rally fades out. It’s too early to ask for stronger sales or positive profit margins.

Anders Bylund has positions in SoundHound AI. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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

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.

A memory chip.

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.

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The real reasons why autism rates have shot up over the decades

This week, the Trump administration announced that it was taking “bold action” to address the “epidemic” of autism spectrum disorder — starting with a new safety label on Tylenol and other acetaminophen products that suggests a link to autism. The scientific evidence for doing so is weak, researchers said.

Health and Human Services Secretary Robert F. Kennedy Jr. said federal officials “will be uncompromising and relentless in our search for answers” and that they soon would be “closely examining” the role of vaccines, whose alleged link to autism has been widely discredited.

Kennedy has long argued that rising diagnoses among U.S. children must mean more exposure to some outside influence: a drug, a chemical, a toxin, a vaccine.

“One of the things that I think that we need to move away from today is this ideology that … the autism prevalence increase, the relentless increases, are simply artifacts of better diagnoses, better recognition or changing diagnostic criteria,” Kennedy said in April.

Kennedy is correct that autism spectrum disorder rates have risen steadily in the U.S. since the U.S. Centers for Disease Control began tracking them, from 1 in 150 8-year-olds in 2000, to 1 in 31 in 2022, the most recent year for which numbers are available.

But physicians, researchers and psychologists say it is impossible to interpret this increase without acknowledging two essential facts: The diagnostic definition of autism has greatly expanded to include a much broader range of human behaviors, and we look for it more often than we used to.

“People haven’t changed that much,” said Alan Gerber, a pediatric neuropsychologist at Children’s National Hospital in Washington, D.C., “but how we talk about them, how we describe them, how we categorize them has actually changed a lot over the years.”

Defining ‘autism’

The term “autism” first appeared in the scientific literature around World War II, when two psychiatrists in different countries independently chose that word to describe two different groups of children.

In 1938, Austrian pediatrician Hans Asperger used it to describe child patients at his Vienna clinic who were verbal, often fluently so, with unusual social behaviors and at-times obsessive focus on very specific subjects.

Five years later, U.S. psychiatrist Leo Kanner published a paper about a group of children at his clinic at the Johns Hopkins Hospital in Baltimore who were socially withdrawn, rigid in their thinking and extremely sensitive to stimuli like bright lights or loud noises. Most also had limited verbal language ability.

Both Asperger and Kanner chose the same word to describe these overlapping behaviors: autism. (They borrowed the term from an earlier psychiatrist’s description of extreme social withdrawal in schizophrenic patients.)

This doesn’t mean children never acted this way before. It was just the first time doctors started using that word to describe a particular set of child behaviors.

For the next few decades, many children who exhibited what we understand today to be autistic traits were labeled as having conditions that have ceased to exist as formal diagnoses, like “mental retardation,” “childhood psychosis” or “schizophrenia, childhood type.”

Autism debuted as its own diagnosis in the 1980 third edition of the Diagnostic and Statistical Manual of Mental Disorders, the American Psychiatric Assn.’s diagnostic bible. It described an autistic child as one who, by the age of 2½, showed impaired communication, unusual responses to their environment and a lack of interest in other people.

As the decades went on, the DSM definition of autism broadened.

The fourth edition, published in 1994, named additional behaviors: impaired relationships, struggles with nonverbal communication and speech patterns different from those of non-autistic, or neurotypical, peers.

It also included a typo that would turn out to be a crucial driver of diagnoses, wrote cultural anthropologist Roy Richard Grinker in his book “Unstrange Minds: Remapping the World of Autism.”

The DSM’s printed definition of autism included any child who displayed impairments in social interaction, communication “or” behavior. It was supposed to say social interaction, communication “and” behavior.

The error went uncorrected for six years, and the impact appeared profound. In 1995 an estimated 1 in every 500 children was diagnosed with autism. By 2000, when the CDC formally began tracking diagnoses (and the text was corrected), it was 1 in every 150.

Reaching underserved communities

In 2007, the American Academy of Pediatrics recommended for the first time that all children be screened for autism between the ages of 18 and 24 months as part of their regular checkups. Prior to that, autism was diagnosed somewhat haphazardly. Not all pediatricians were familiar with the earliest indicators or used the same criteria to determine whether a child should be further evaluated.

Then in 2013, the fifth edition of the DSM took what had previously been four separate conditions — autistic disorder, Asperger’s disorder, childhood disintegrative disorder and pervasive developmental disorder — and collapsed them all into a single diagnosis: autism spectrum disorder.

The diagnostic criteria for ASD included a broad range of social, communication and sensory interpretation differences that, crucially, could be identified at any time in a child’s life. The term was no longer limited only to children whose development lagged noticeably behind that of their peers.

Since that definition was adopted, U.S. schools have become more proactive about referring a greater range of children for neurodevelopmental evaluations. The new DSM language also helped educators and clinicians better understand what was keeping some kids in disadvantaged communities from thriving.

“In the past, [autism was] referred to as a ‘white child’s disability,’ because you found so few Black and brown children being identified,” said Shanter Alexander, an assistant professor of school psychology at Howard University. Children of color who struggled with things like behavioral disruptions, attention deficits or language delays, she said, were often diagnosed with intellectual disabilities or behavioral disorders.

In a sign that things have shifted, the most recent CDC survey for the first time found a higher prevalence of autism in kids of color than in white children: 3.66%, 3.82% and 3.30% for Black, Asian and Latino children, respectively, compared with 2.77% of white children.

“A lot of people think, ‘Oh, no, what does this mean? This is terrible.’ But it’s actually really positive. It means that we have been better at diagnosing Latino children [and] other groups too,” said Kristina Lopez, an associate professor at Arizona State University who studies autism in underserved communities.

The severity issue

An autism diagnosis today can apply to people who are able to graduate from college, hold professional positions and speak eloquently about their autism, as well as people who require 24-hour care and are not able to speak at all.

It includes people who were diagnosed when they were toddlers developing at a noticeably different pace from their peers, and people who embraced a diagnosis of autism in adulthood as the best description of how they relate to the world. Diagnoses for U.S. adults ages 26 to 34 alone increased by 450% between 2011 and 2022, according to one large study published last year in the Journal of the American Medical Assn.

Kennedy was not correct when he said in April that “most cases now are severe.”

A 2016 review of CDC data found that approximately 26.7% of 8-year-olds with autism had what some advocates refer to as “profound autism,” the end of the spectrum that often includes seriously disabling behaviors such as seizures, self-injurious behavior and intellectual disability.

The rate of children with profound autism has remained virtually unchanged since the CDC started tracking it, said Maureen Durkin, a professor of population health science and pediatrics at the University of Wisconsin-Madison. Indeed, the highest rate of new diagnoses has been among children with mild limitations, she said.

For many researchers and advocates, the Trump administration’s focus on autism has provoked mixed emotions. Many have lobbied for years for more attention for this condition and the people whose lives it affects.

Now it has arrived, thanks to an administration that has played up false information while cutting support for science.

“They have attempted to panic the public with the notion of an autism epidemic as a threat to the nation, when no such epidemic actually exists — rather, more people are being diagnosed with autism today because we have broader diagnostic criteria and do a better job detecting it,” said Colin Killick, executive director of the Autistic Self Advocacy Network. “It is high time that this administration stops spreading misinformation about autism, and starts enacting policies that would actually benefit our community.”

This article was reported with the support of the USC Annenberg Center for Health Journalism’s National Fellowship’s Kristy Hammam Fund for Health Journalism.

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Why Is This Wall Street Analyst So Bearish on Nvidia? Here Are 3 Key Reasons.

There is only one Wall Street analyst with a sell rating on Nvidia stock.

Nvidia (NVDA -2.79%) is one of the most beloved stocks on the market today. The company has a dominant lead in creating the GPUs designed specifically for artificial intelligence use cases.

Most analysts are big fans of Nvidia as both a business and as an investment. But one analyst, Jay Goldberg, has a $100 price target for Nvidia stock, the lowest on Wall Street. Whether or not you agree with him, every investor should understand why he expects the stock to fall over 40%.

3 reasons Goldberg is bearish on Nvidia stock

Nvidia is growing by leaps and bounds. Sales are up by more than 1,000% over the past five years. And given that the AI market is expected to grow by more than 30% annually for years to come, Nvidia’s double-digit growth rates should be here to stay. But shares trade at a lofty 27 times sales, and Goldberg thinks there are cracks beginning to show in Nvidia’s growth story.

His first issue is with Nvidia’s exposure to China. The ongoing trade war has disrupted the company’s ability to sell its marquee chips to the country, a country that has an AI industry growing by 50% or more per year. Nvidia reportedly struck a deal with the U.S. to resume exports, but ongoing issues with the Chinese government may allow Chinese chipmakers to catch up and secure domestic market share.

AI GPU Nvidia

Image source: Getty Images

Goldberg is also concerned with Nvidia’s bullishness surrounding agentic technologies. While agentic services do pose a long-term growth story, Goldberg thinks that the world is still many years away from any meaningful real-world adoption of this technology.

Finally, Goldberg cautions investors that there may be a short-term limit to the skilled labor pool that can scale for AI demand as much as forecasts predict. Even Nvidia has admitted that a huge workforce retraining will be required in an AI-enabled world.

While you may not agree with Goldberg’s contrarian outlook, even Nvidia’s most bullish investors can benefit from understanding the challenges the company faces.

Ryan Vanzo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.

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3 Reasons to Buy Upstart Stock Like There’s No Tomorrow

It’s not been a stellar performer of late. Just take a step back and look at the bigger picture.

Is your portfolio in need of a new growth name? Perhaps a stock that hasn’t raced to a nosebleed valuation thanks to the advent of artificial intelligence? They’re out there. You just have to dig a little deeper to find them, pushing through all the noise being created by the market’s most popular names right now.

One of these hidden gems is a young company called Upstart Holdings (UPST -0.27%). Here’s what it does and why you should consider it now.

What’s Upstart?

You may already be familiar with Upstart, but if you’ve only recently stumbled across this name, here’s the deal. In simplest terms, Upstart is a new kind of credit bureau.

In their infancy, established credit bureaus like Equifax, TransUnion, and Experian did their job well enough with the tools available at the time. All three of them were launched before the advent of the internet, while two of them were created before the invention of anything that might even be considered something akin to a modern-day computer. Verifying an individual’s income and manually keeping track of any late or missed payments back then was actually a pretty impressive achievement.

A meeting between a bank lender and two borrowers.

Image source: Getty Images.

Data storage and information-sharing technology have obviously changed for the better in the meantime. The traditional credit bureaus’ approach to determining credit scores, however, hasn’t. All of them still assign quantified scores to criteria like someone’s payment history, current indebtedness, income, and how old that consumer‘s credit history is.

But there’s now a better way. Using an artificial intelligence algorithm that considers more than 1,600 data points about each and every individual, Upstart can do what traditional credit bureaus simply can’t. That’s come up with a hyper-accurate picture of someone’s actual creditworthiness. And it can do so in a matter of seconds, delivering that information to a potential lender via the internet at any time of day.

Honestly, it’s surprising someone didn’t do it before former Google executive and current CEO Dave Girouard launched the company back in 2012 with fellow former Google executive Anna Counselman and statistical science expert Paul Gu.

Whatever the case, shareholders have been well-rewarded since the company’s initial public offering back in December of 2020. The stock’s up more than 240% from its IPO price of $20, and more than 50% above its first trade on a public exchange.

This is still just the beginning, though. There’s still a ton of upside potential left to tap.

Three reasons to buy Upstart stock

There are several compelling reasons to dive into a stake in Upstart here. But three stand out and are bullish enough in and of themselves.

1. The technology works

It’s not just a meaningless solution to a problem that doesn’t exist. The algorithm works. Upstart’s platform allows for 43% more loan approvals than conventional credit bureaus do. And, one-third of the loans it prompts are made at a lower interest rate than would have been offered through a more traditional approval approach. It’s a win for consumers as well as lenders, not to mention the middlemen that benefit when a would-be borrower qualifies to make a purchase.

2. And lenders are increasingly embracing it

A technology that works is one thing. A technology that the marketplace believes in enough to use is another. In this vein, adoption of Upstart’s technology got the expected slow start. As of the time of its 2020 public offering, only a handful of lenders were using its platform, facilitating $4.1 billion worth of loans in 2021, translating into revenue of $305 million for the company itself.

Last year, though, Upstart’s solution led over 100 lenders to approve nearly $6 billion in loans, translating into revenue of $637 million. The company expects to report a top line of more than $1 billion this year, en route to analysts’ expectation of $1.34 billion revenue next year and 2027 sales of $1.6 billion. Of that $1.6 billion, $216 million of it should be turned into net profit versus this year’s likely near-breakeven.

Upstart's top line growth is expected to soar at least through 2027, widening the company's profitability as a result.

Data source: Simply Wall St. Chart by author.

3. You can step in at a discounted price

Given the fiscal trajectory here, one would expect Upstart stock to be soaring. And it’s certainly had its bullish moments. But none of those moments have been seen for very long since late last year.

While the company’s shares recovered with the rest of the market following February’s and March’s meltdown, they have not followed through like other stocks have. Rather, they’ve peeled back a bit from July’s high, and are now trading where they were in November. The market is still pretty worried about the economic impact of lingering inflation — a concern Girouard expressed during August’s second-quarter earnings call.

Investors, however, are arguably pricing in too much of this concern. Analysts seem to think so, anyway. The analyst community still supports a consensus target of $78.79 despite the stock’s recent pullback, which is 15% above Upstart shares’ present price. That’s not a bad tailwind to start out a new trade with.

Just don’t lose perspective on what you’re buying into

A promising prospect? Sure. But not one without its risks. Even if its earnings are poised to grow and dramatically widen profit margin rates over the course of the coming couple of years, its net earnings rates are still rather thin. It wouldn’t take much turbulence to do plenty of relative damage to these fragile bullish expectations.

There’s also no real moat to keep would-be competitors from entering the market with a similar credit-scoring technology, including the familiar credit bureaus themselves. Neither is a reason for volatility-tolerant and risk-tolerant investors to avoid Upstart shares, though.

As to the latter, while there’s no significant tangible moat, the lending industry’s disinterest in embracing change effectively serves as one. Upstart has time to continue becoming the dominant name in the AI-powered lending business. With its tech already refined and available, there would be little need for lenders to consider an alternative that isn’t likely to perform any better.

And as to the former, although the young business is still somewhat unpredictable from one quarter or even one year to the next, look five years down the road. Upstart’s platform is superior to alternative credit-scoring tech. Sheer practicality will drive long-term growth here, even if the stock doesn’t reflect this growth with straight-line forward progress.

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4 Reasons to Buy Uber Stock Like There’s No Tomorrow

The leader in mobility and delivery is winning over investors in remarkable fashion.

Uber Technologies (UBER 4.26%) has been hitting its stride. And the market is taking notice, as investors view the business in an extremely favorable light. As of Sept. 17, shares are up 54% in 2025 and 191% in the past three years. That’s an incredible rise that has driven its market capitalization to nearly $200 billion.

It’s important not to simply assume that the gains will continue. Investors should think about the factors that can support further upside. In this instance, it’s easy to be optimistic. Here are four reasons to buy Uber stock like there’s no tomorrow.

Person waving down a car ride on the street.

Image source: Getty Images.

1. Growth

The first reason to add Uber to your portfolio focuses on the company’s growth, which has been spectacular. In the latest quarter (Q2 2025, ended June 30), Uber had 180 million monthly active platform consumers (MAPCs), up from 76 million exactly seven years ago. Unsurprisingly, this has led to soaring gross bookings and revenue in both the mobility and delivery segments.

Uber is currently available in 15,000 cities across the globe. However, there is still expansionary potential. Getting consumers to use multiple services, known as cross-promotion, is a big opportunity, as is boosting usage frequency.

There’s also the Uber One subscription program, which counts 36 million members. They spend significantly more than non-members. Increasing the share of MAPCs that become Uber One members can drive substantial growth.

2. Profitability

In 2019, Uber posted a whopping operating loss of $8.6 billion. Since then, management’s intense focus on running the business in a more efficient manner has worked wonders. In the last six months, the company reported operating income of $2.7 billion. This impressive profitability is the second reason to buy the stock.

Uber is proving that it can scale up in an extremely lucrative manner. Wall Street is bullish. Consensus analyst estimates call for earnings per share to increase at a compound annual rate of 23% between 2025 and 2027, much faster than projected revenue gains.

Free cash flow is also pouring in, totaling $2.5 billion in the second quarter. This is giving the leadership team confidence. They just announced a $20 billion share buyback authorization.

3. Autonomous vehicles

There are a lot of companies out there working on autonomous vehicle (AV) technology. While Uber previously had an AV unit, it sold this segment in 2020. Instead, the business is partnering with others, whether car makers or software providers, in an effort to help develop this technology. There are currently 20 partners.

Uber is in an advantageous position because it directly controls the relationship with 180 million MAPCs. Therefore, it has access to a large pool of demand. And it has expertise in operating a huge tech platform. This gives it a capital-light way to play in the AV market.

This doesn’t mean that Uber’s strategy is completely fail-safe. For instance, there is a risk that Tesla could be successful in its efforts to scale up its robotaxi service. This would create a competing platform to Uber.

4. Economic moat

Buying and holding companies that possess an economic moat, or durable competitive advantages, can contribute to investing success. Uber has this important characteristic, which is the fourth reason to add the business to your portfolio.

As a platform, the company benefits from a powerful network effect. More riders (drivers) add more value to drivers (riders), making the service more useful as it gets bigger.

Uber also has noteworthy intangible assets that support its ongoing success. Its brand is so strong that its often used interchangeably as a verb, indicating robust user mindshare. And the company’s ability to collect and utilize its data is also worth pointing out. This has spawned a new business line with digital advertising, a segment that raked in $1.5 billion in annualized revenue in Q1 earlier this year.

Uber’s growth trajectory, rising profits, position in the AV market, and economic moat are four reasons to buy the stock like there’s no tomorrow.

Neil Patel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla and Uber Technologies. The Motley Fool has a disclosure policy.

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Microsoft Just Gave Investors 17.4 Billion Reasons to Buy This Monster Artificial Intelligence (AI) Data Center Stock Hand Over Fist

Microsoft just inked a $17.4 billion deal with a data center company backed by Nvidia.

For the first time since artificial intelligence (AI) captured Wall Street’s imagination, investors are beginning to broaden their scope beyond the “Magnificent Seven.” Two names that have attracted growing attention this year are Oracle and CoreWeave.

Unlike the tech titans that dominate headlines, Oracle and CoreWeave are carving out their niche at the infrastructure layer of the AI ecosystem. The opportunity they’ve identified is straightforward but also mission-critical: providing cloud-based access to GPUs. These chips — designed primarily by Nvidia and Advanced Micro Devices — remain supply constrained as they are largely absorbed by the world’s largest companies.

This supply imbalance has created an opportunity to enable AI model development by offering GPUs as a service — a business model that allows companies to rent chip capacity through cloud infrastructure. For businesses that cannot secure GPUs directly, infrastructure services are both time-saving and cost-efficient.

In the background, however, a small, albeit capable, company has been competing with Oracle and CoreWeave in the GPU-as-a-service landscape. Let’s explore how Nebius Group (NBIS 5.54%) is disrupting incumbents and why now is an interesting time to take a look at the stock for your portfolio.

17.4 billion reasons to pay close attention to Nebius

Last week, Nebius announced a five-year, $17.4 billion infrastructure agreement with Microsoft. For reference, up until this point, Nebius’ management had been guiding for $1.1 billion in run rate annual recurring revenue (ARR) by December. I point this out to underscore just how transformative this contract is in terms of scale and duration.

The Microsoft deal not only places Nebius firmly alongside peers like Oracle and CoreWeave in the AI infrastructure conversation, but it also serves as validation that its technology is robust enough to meet the standards of a hyperscaler.

For Microsoft, the partnership is equally strategic. With GPUs in chronically short supply and long lead times to expand data center capacity, this agreement allows Microsoft to secure adequate compute resources without stretching internal infrastructure or assuming the upfront capital expenditure (capex) budget and execution risks that come with it.

A clock with arms that say Time To Buy.

Image source: Getty Images.

Why this deal matters for investors

AI investment is not a cyclical trend — it’s a structural shift. Enterprises are deploying applications into production at unprecedented speed, workloads are scaling rapidly, and new use cases in areas like robotics and autonomous systems are emerging.

For companies that supply the compute underpinning this increasingly complex ecosystem, these dynamics create durable secular tailwinds. By securing Microsoft as a flagship customer, Nebius has established itself within this foundational layer of the AI infrastructure economy.

Is Nebius stock a buy right now?

Since announcing its partnership with Microsoft, Nebius shares have surged roughly 39% as of this writing (Sept. 16). With that kind of momentum, it’s natural to wonder whether the stock has become expensive. To answer that, it helps to put its valuation in context.

Prior to the Microsoft deal, Nebius was guiding for $1.1 billion in ARR by year-end. If I assume Microsoft’s $17.4 billion commitment is evenly spread across five years (2026 to 2031), that adds about $3.5 billion annually — bringing Nebius’ pro forma ARR closer to $4.6 billion.

Against its current market cap of $21.3 billion, Nebius stock trades at an implied forward price-to-sales (P/S) ratio of 4.6. On the surface, that looks meaningfully discounted to peers like Oracle and CoreWeave.

ORCL PS Ratio Chart

ORCL PS Ratio data by YCharts

That said, there are important caveats to consider. My analysis assumes no customer attrition over the next several years — this is unrealistic due to competitive pressures. While Nebius may continue winning large-scale contracts, it’s also reasonable to expect some customer churn.

Moreover, comparing Nebius’ future ARR to Oracle’s and CoreWeave’s current revenue base is not an apples-to-apples match. Oracle, for example, has reportedly inked a $300 billion cloud deal with OpenAI. Meanwhile, CoreWeave also has multiyear, multibillion-dollar commitments tied to OpenAI. The catch is that OpenAI itself doesn’t have the cash on its balance sheet to fully fund these agreements — leaving questions about their viability.

In short, Nebius appears attractively valued relative to its peers — but the landscape is evolving quickly and riddled with moving parts. The more important takeaway is that Nebius is now winning significant business alongside its brand-name peers.

In my eyes, this validation in combination with ongoing structural demand tailwinds makes Nebius a compelling buy and hold opportunity as the AI infrastructure narrative continues to unfold.

Adam Spatacco has positions in Microsoft and Nvidia. The Motley Fool has positions in and recommends Advanced Micro Devices, Microsoft, Nvidia, and Oracle. The Motley Fool recommends Nebius Group 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.

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3 Reasons Bitcoin Is Pulling Back

After turning in two straight years of triple-digit returns in 2023 and 2024, Bitcoin (BTC 2.30%) is on track in 2025 for its weakest performance since 2022. The world’s most popular cryptocurrency is down 6% over the past 30 days, and is only up 20% for the year as I write this.

So what’s going on? There are three possible reasons why Bitcoin is pulling back.

Reason No. 1: Overall macroeconomic weakness

For much of its history, Bitcoin has been uncorrelated with any major asset class. It could zig when other assets zagged. That made Bitcoin particularly attractive to investors. In just about any market conditions, Bitcoin could offer the potential for sky-high returns.

Gold Bitcoin surrounded by charts and graphs.

Image source: Getty Images.

But that may no longer be the case. In many ways, Bitcoin may be much more susceptible to overall macroeconomic conditions than once thought. In other words, Bitcoin will face much stiffer headwinds if jobs growth slows, if inflation further rears its head, or if tariffs lead to weaker overall growth. And that’s exactly what appears to be happening right now.

Bitcoin’s pullback makes sense if you consider how much attention it now garners from institutional investors. Just a few years ago, retail investors were driving the pace of Bitcoin adoption. But now it’s deep-pocketed institutional investors, and that likely explains the crypto market’s current obsession with potential Fed rate cuts. 

Reason No. 2: Investors are diversifying into other crypto assets

While Bitcoin still accounts for nearly 60% of the entire market cap of the crypto market, it’s hard to ignore how much interest other niches of the crypto market are now attracting from investors. At one time, Bitcoin was the only game in town for institutional investors. But not any longer.

Take, for example, the rise of so-called digital asset treasury companies. These companies do only one thing: Raise money from outside investors, and then plow that money back into one specific crypto asset. This summer has already seen the appearance of Ethereum, Solana, and XRP treasury companies. All of that is money that could have flowed into Bitcoin.

Or, for example, take the sudden interest in stablecoins. Recently enacted legislation will likely lead to a boom in stablecoin investment. According to a recent report from Citigroup, the size of the stablecoin market could balloon to $3.7 trillion within just a few years. This, too, is money that could have gone into Bitcoin.

This diversification away from Bitcoin into other crypto assets is not a new phenomenon. This is the same pattern, in fact, that the crypto market saw during the previous bull market rally of 2020-21. Bitcoin surged first, followed by Ethereum, and then lower market cap altcoins. Finally, there was an explosion of speculative excess into meme coins and non-fungible tokens (NFTs).

Reason No. 3: The Bitcoin cycle is running its course

That leads us to potentially the most concerning reason for Bitcoin’s pullback: The four-year Bitcoin cycle is running to where it usually drops. If you’re a Bitcoin investor, that’s the last thing you want to hear, because it means Bitcoin’s recent pullback may be a portent of things to come later in 2025.

There are no guarantees in investing, but if history is any guide, the Bitcoin halving every four years is the catalyst for a massive run-up in price. So far there have been four halvings, and the post-halving period of price appreciation typically has lasted anywhere from 12 to 18 months, followed by a classic “blow-off top”– a steep, rapid rise followed by a steep, rapid drop. In that scenario, Bitcoin reaches a new high all-time high before eventually collapsing in value. In 2022, for example, Bitcoin declined by a gut-wrenching 64% after hitting a new all-time high in November 2021 following the May 2020 halving.

The problem, quite frankly, is that Bitcoin’s most recent halving event took place in April 2024. That means we are now 17 months into the period of expected to be rapid price appreciation. In a worst-case scenario, there might only be a few months left before Bitcoin has another blow-off top, and the whole cycle begins anew.

Certainly, there are plenty of signs of this blow-off top in progress. Billions of dollars are being invested in highly speculative digital assets, money-losing businesses are rapidly transforming into digital asset treasury companies, new crypto companies are rushing to go public before the crypto IPO window closes, and Wall Street is rushing to reassure investors that “this time it’s different.”

So, if you are thinking of investing in Bitcoin now, remember to do your due diligence and keep your investment small. There are several very concerning signs that Bitcoin’s summer pullback might be a red flag for a difficult and tumultuous final quarter of the year.

Citigroup is an advertising partner of Motley Fool Money. Dominic Basulto has positions in Bitcoin, Ethereum, Solana, and XRP. The Motley Fool has positions in and recommends Bitcoin, Ethereum, Solana, and XRP. The Motley Fool has a disclosure policy.

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You’re right that European tea tastes rubbish – there are reasons why

On the Beach and Lancashire Tea unveiled a brand-new teabag that, in their own words, “will tackle the age-old gripe of why a holiday cuppa never quite tastes like one at home”

A cup of tea on a tray and a young female in the background
Not all teas are brewed equally(Image: Getty Images)

This summer a travel company and tea brand attempted to solve a problem that has been plaguing British holidaymakers for centuries.

After months of research, testing and more than a thousand cups of tea, On the Beach and Lancashire Tea unveiled a brand-new teabag that, in their own words, “will tackle the age-old gripe of why a holiday cuppa never quite tastes like one at home.”

It is one of life’s most recognisable issues. You arrive in a resort in Spain, France or Portugal, pop the kettle on and then discover the only tea bag on offer is a Lipton’s. Worse still, the milk provided is UHT. Despite your best efforts to persevere, the resultant cup is even less tasty than the sum of its parts.

Weaker holidaymakers have been driven straight to the all-inclusive bar.

READ MORE: ‘No way to escape the crowds’ as three major factors shift Spain’s peak seasonREAD MORE: Tourists warned to swerve Europe’s ‘most overrated city’ and head to quieter alternative instead

A woman in a bath robe holding a cup of tea
Travelling can be difficult for tea-lovers(Image: Getty Images)

According to world-renowned tea expert Jane Pettigrew, it is not tribal brand loyalty that has blinded Brits to the pleasures of European tea. It is genuinely worse (or different at least). And for two main reasons.

The first is the type of tea.

According to Jane, the colonial history of European countries has left the Continent’s various populations with very different tastes in tea.

Brits “still choose to drink cheap black tea grown in India, Sri Lanka or East Africa, and blended to give a strong, coloury tea without much in the way of subtle and wonderful flavours,” explained Jane, who is an advocate of the more complex, subtler flavours delivered by loose-leaf teas from countries including China.

Broadly speaking, in Germany, Spain, Italy and Portugal tea is bought from Indonesia, Malaysia and Vietnam which has a “flavour profile blended (which) is gentler, thinner, less robust than British blends and therefore British tourists don’t like” it.

Another differentiating factor is milk.

“Most Brits still put milk in their tea (and still sometimes sugar, although I think the use of sugar has reduced a little). That style of tea is very British and is due to the fact that British colonies were in the regions of the world from which our tea comes (India, Sri Lanka, and East African countries such as Kenya, Malawi, Tanzania, Uganda, etc), which all started growing tea under British colonial rule,” Jane explained.

“France on the other hand (as well as some African colonies) had colonies in French Indochina (Vietnam, Cambodia, and Laos) where Chinese-style teas have been grown since the days of colonisation. So the sort of teas that the French drink tend to be lighter, more subtle, never with added milk or sweetener.”

READ MORE: You’re probably making one big booking mistake that gets you the worst roomREAD MORE: ‘I went on UK rail route named world’s most beautiful and it lived up to the hype’

Jane, who has won many different tea-related awards during her long career and is the author of World of Tea, despairs at the sense of superiority that many Brits have when it comes to a cuppa.

“Brits are really picky about how they like their tea, and don’t want those other types of lighter blends or specialty teas that Europeans choose,” she told me.

“The fact that Brits see their chosen brands of cheap black tea in paper tea bags as superior is evidence that they actually know nothing about tea. In general, Brits expect their daily brew to be cheap, strong and robust. In fact, what they prefer to drink is actually without any real subtle flavour, and is cheap because the cost of the types of tea that go into our traditional blends has hardly increased since the 1950s.”

Whether indeed picky or suffering from an unfounded sense of superiority, many Brits are convinced the teabag is the source of the issue. More than two-thirds (66%) of tea-drinking Brits admit to taking their own teabags on holiday with them, according to an On the Beach poll.

Even if you are armed with a solid supply of Yorkshire Gold or Barry’s before heading onto the Continent, that doesn’t mean your cuppa will be as comforting or delicious as it is at home.

The other major problem with mainland European tea is the water.

“The worst enemies to brewing good tea are limescale, chlorine, and dissolved heavy metals. So I advise everyone, except perhaps in Japan where the water is almost too soft, to use Brita filter taps or jugs to remove most of the offending ingredients,” Jane explained.

If tea is brewed in hard water, as in London and most areas to the north and south of the English capital, it can completely change the colour, aroma, and flavour profile of the brew. Often, this can cause a filmy layer to form on the surface of the tea, making the liquor cloudy.

Jane has carried out taste tests of the same tea bag brewed in filtered and unfiltered water, and says the results are stark. “People don’t believe you that it’s the same tea used for both brews,” she said.

Odds on, the cup of tea that you like will be determined by what you’re used to. And, given this is based on both bag and water, this can be tricky to emulate. For example, in Spain, regions like Burgos and San Sebastián are known for having soft water, whereas cities like Valencia, Malaga, and Almeria have hard water, meaning the brews in each will vary considerably.

Jane’s top tip is to invest in a water filter and to go loose.

“I always take some good loose-leaf tea with me when I travel because once you arrive at your destination, you may not find anything you like that is readily available. And if hotels and restaurants where you are staying don’t have any tea that Brits prefer, it is easier to ask for just hot water and brew your own,” she said.

So in conclusion, continental European tea may well taste rubbish to the British tongue, but only because it’s different.

When it comes to the special On the Beach and Lancashire Tea brew, I gave it a whirl in Sicily this summer. While my mind has not been blown or my life changed, I can confirm it delivered a decent cuppa.

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TIFF 2025: Here are five reasons why, after 50 years, Toronto’s film festival still matters

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Kicking off Thursday night, the Toronto International Film Festival marks its 50th edition this year, bringing together a heady combination of art, business and celebrity.

The festival has become a reliable launching pad for films in North America, particularly those looking to enter the Oscar race. Though TIFF’s status as an awards-season kingmaker has found fiercer competition in recent years from adjacent events in Telluride and Venice, it unquestionably still matters, remaining an essential spot on the annual calendar of any movie year.

“I think TIFF is a really adaptable festival,” said Robyn Citizen, the festival’s director of programming, over Zoom this week. “We can’t always tell where the industry’s going, but we do want to be able to still serve our audiences and our industry the best we possibly can.”

Here are just a handful of reasons why TIFF has maintained such a significant role for so long.

It’s the ultimate one-stop shop

There will be more than 200 features screening at this year’s festival. Among those having their world premieres are Aziz Ansari’s wealth-inequality comedy “Good Fortune,” Nia DaCosta’s updated Ibsen adaptation “Hedda,” Derek Cianfrance’s true-crime caper “Roofman,” Hikari’s family drama “Rental Family,” Nic Pizzollatto’s Las Vegas-set “Easy’s Waltz,” David Michôd’s Sydney Sweeney-starring boxing drama “Christy” and Rian Johnson’s latest Benoit Blanc adventure “Wake Up Dead Man: A Knives Out Mystery.” The festival will open with Colin Hanks’ documentary “John Candy: I Like Me,” also having its first screening ever.

A woman wearing a pearl necklace speaks at a party.

Tessa Thompson stars in director Nia DaCosta’s “Hedda,” an adaptation of Ibsen’s “Hedda Gabler.” The movie will have its world premiere at the 2025 Toronto International Film Festival.

(Prime Video)

TIFF remains valuable for more than just its world premieres, though. Among those titles playing at Toronto after having just bowed last week at Venice or Telluride (or even both) are Guillermo del Toro’s “Frankenstein,” Chloé Zhao’s Shakespeare-inspired “Hamnet,” Mona Fastvold’s historical musical “The Testament of Ann Lee” and Edward Berger’s gambling drama “Ballad of a Small Player.”

Movies that played even earlier in the year at festivals such as Sundance, Berlin or Cannes are also featured in the lineup: Joachim Trier’s “Sentimental Value,” Mary Bronstein’s “If I Had Legs I’d Kick You,” Rebecca Zlotowski’s “A Private Life,” Jafar Panahi’s Palme d’Or-winning “It Was Just an Accident” and Richard Linklater’s “Blue Moon” and “Nouvelle Vague” will all be at TIFF.

It is exactly that combination of the best from different festivals and different parts of the calendar that makes TIFF unique. The event was originally known as the “Festival of Festivals,” meaning that it has always been a part of its mission to present a curated selection of the year’s best films. For better or worse, TIFF is often trying to be something for everyone.

“It’s important to us to curate with an attention to films that we know our audience may want to see, but that also includes films that we think our audience needs to see,” said Citizen. “We want to be that bridge between the filmmakers, the industry and the audience.”

Journalists covering the event can catch up with films from earlier in the year, get a jump on awards-season titles just beginning to find their way to audiences and even see projects that may not be released until a year or more later.

Add to that spirit of efficiency the fact that for increasingly budget-conscious U.S. media outlets, sending reporters to Toronto can often be a more cost-effective choice than pricier destinations such as Cannes, Telluride or Venice.

These are the festival world’s friendliest audiences

Toronto-born writer-director Chandler Levack will be world-premiering her “Mile End Kicks,” which stars Barbie Ferreira in a story based on Levack’s own experiences as a young music journalist. Levack said she is excited to see how a moment when Ferreira’s character flips off Toronto’s landmark CN Tower plays to a local audience.

Levack has experienced TIFF from multiple perspectives, first as a film student waiting in line for last-minute tickets, then as a journalist hustling for interviews, then working for the festival as a writer and now as a returning filmmaker.

A woman writes an article on a laptop.

Barbie Ferreira in Chandler Levack’s “Mile End Kicks.”

(TIFF)

“I think it still sets the tone for the cultural conversation in cinema,” said Levack. “The ways that I’ve seen movies at TIFF with those audiences — the way those films hit me and affected me — they’ve been really the most profound cinematic experiences of my life.”

TIFF is often referred to as an audience festival, meaning that the audiences there are particularly receptive, giving warmly enthusiastic responses. The area of the festival’s downtown core around King Street where some of the key venues are located can often be jam-packed with fans trying to catch an autograph, a selfie or even just a glimpse of some of their favorite stars. The most significant prize given by the festival is its People’s Choice audience award, which has often been a strong bellwather for its winner’s chances at the Oscars.

The distributor Sony Pictures Classics has eight movies playing in this year’s edition alone, including “Blue Moon,” Haifaa Al Mansour’s “Unidentified” and Scarlett Johansson’s “Eleanor the Great.” Over the years the company has brought more than 400 titles to TIFF.

“The audience is one of the most sophisticated in the world, for my money,” said Tom Bernard, who along with Michael Barker is co-founder and co-president of Sony Pictures Classics. “They get every nuance of every tick in a film, be it a comedy, a drama, a gasp that happens where they gasp with it. When you go see a movie in Toronto, you have to be careful because the reaction is so enthusiastic that many times you say, ‘Well, wow, that movie would be great.’ But it might be a little more difficult than the way that it plays in that town.”

The road to the Oscars often goes through Toronto

Though none of them had their world premieres at the festival, last year’s winners “Anora,” The Brutalist,” “Emilia Pérez,” “Conclave,” “Flow,” “I’m Still Here,” “The Substance” and “No Other Land” all played there. The Oscar nominated film “Sing Sing” had its world premiere at the 2023 edition of TIFF.

“Wake Up Dead Man” is the third film in director Rian Johnson’s series of mysteries starring Daniel Craig; all three premiered at TIFF. This marks the fifth time producer Ram Berman and Johnson have premiered one of their films at the festival. Both previous “Knives Out” mysteries earned Oscar nominations for Johnson for original screenplay.

A man speaks to a worried driver from the backseat of a car.

Josh O’Connor, left, and Daniel Craig in the movie “Wake Up Dead Man: A Knives Out Mystery.”

(Netflix)

Their company, T-Street Productions, also produced “American Fiction,” which premiered at the fest in 2023 and won the coveted People’s Choice audience award (other recent winners include “The Fabelmans,” “Belfast,” “Nomadland” and “Jojo Rabbit”), beginning a wave that took the film all the way to five Academy Award nominations, including best picture and winning the Oscar for adapted screenplay.

Though the new “Knives Out” film has been finished for a few months, Bergman said the plan was always to premiere again in Toronto, even playing in the same theater on the same day at the same time as the previous two films.

“I like going to Toronto and premiering there because the audience is always great,” said Bergman. “And really that’s who we make the movies for. We are not in the game, we’re not strategizing awards or anything, we just want people to have fun. We’ve always had a great time playing the movies in Toronto, so we should continue playing the movies in Toronto. It’s really that simple.”

Provocative documentaries often stir the pot

Nonfiction has always been a big part of Toronto’s identity going back to its very beginnings, which saw the likes of “Harlan County, USA.” and “Roger & Me” playing the festival.

Oscar-winner Laura Poitras returns to Toronto with “Cover-Up,” a portrait of investigative journalist Seymour Hersh that she co-directed with Mark Obenhaus. “Free Solo” directors Chai Vasarhelyi and Jimmy Chin also return with “Love+War,” a look at the life of photojournalist Lynsey Addario.

This year, Ben Proudfoot’s “The Eyes of Ghana,” a portrait of African cinematographer Chris Hesse, will have its world premiere. Proudfoot previously won two Oscars for the documentary shorts “The Queen of Basketball” and “The Last Repair Shop.” (the latter a film that LA Times Studios co-distributed).

A man inspects a film reel.

Cameraman Chris Hess in Ben Proudfoot’s documentary “The Eyes of Ghana.”

(TIFF)

“Canceled: The Paula Deen Story,” a look at the rise and fall of the food-world star, will have its world premiere, as will “EPiC: Elvis Presley in Concert,” Baz Luhrmann’s documentary.

Documentaries that touch on hot button issues can raise problems for the festival as well. Last year Anastasia Trofimova’s film “Russians at War,” for which the filmmaker embedded herself with Russian soldiers to depict the war in Ukraine, sparked public outcry, threats of protest and safety concerns that caused the festival to ultimately show it after the main TIFF event had officially ended.

This year the festival initially invited the documentary “The Road Between Us: The Ultimate Rescue,” about a hostage rescue mission undertaken by a retired Israel Defense Forces officer following the Hamas attacks in Israel on Oct. 7, 2023. The festival then withdrew the film, directed by Toronto filmmaker (and former TIFF board member) Barry Avrich, from the lineup and following public uproar subsequently rescheduled it for a single public showing.

“This is the world we live in,” said Thom Powers, lead programmer of TIFF docs, about the way in which impassioned controversy erupts over films people have not even seen yet — the result of overly politicized environments and the short fuses of the social media era. “We can see this at many festivals.”

A proven half-century track record

For the first four years that Sony Classics’ Bernard brought films to Toronto, he would play then-festival chief Wayne Clarkson in tennis, with the loser paying for talent’s travel expenses. (Bernard won most of the time.)

He also recalled the time that he was able to have the training staff of the NHL’s Toronto Maple Leafs come right to the hotel room of Spanish auteur Pedro Almodóvar to reset his back.

But mainly there are memories of movies, times the festival’s specific magic cast its spell.

“I remember sitting in the theater watching ‘Il Postino’ and the guy who’s selling it is sitting next to me,” said Bernard of the 1994 film that would go on to be nominated for five Oscars, winning one. “And as the movie continues, the guy’s smile is getting bigger and bigger and bigger because he knows he’s going to be able to jack the price up way beyond anything I could pay.

“On the other hand, I remember being at the end of the festival and sitting in ‘Orlando’ and nobody was there but me,” he said of Sally Potter’s 1992 film that was a breakthrough for performer Tilda Swinton. “And I sent it back to the office, everybody saw it and it’s one of those all-time movies just because we were hanging around.”

For Levack, the festival has already provided a launching pad. After her first feature “I Like Movies,” premiered at the festival in 2022, it eventually made its way to the attention of Adam Sandler. Levack is currently finishing “Roommates” for Sandler’s Happy Madison production company.

“TIFF was unbelievably instrumental in making our film not only exist but matter,” said Levack of the response to her debut. “We really broke out and became sort of a viral unexpected hit at that festival and that really made my entire career from that point exist.”

Even as Toronto has weathered the changing fortunes of the film business and grappled with competition from other festivals, there is still something unique that happens when some of the year’s most anticipated new films meet these audiences.

“People say, ‘We’re going to put it in Toronto and then we’re getting into the Oscar game,’” said Bernard. “But it’s the audience [that decides]. You don’t fool anybody in Toronto.”

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Five reasons Erik ten Hag was sacked by Bayer Leverkusen revealed in disastrous appointment that cost £86k per day

ERIK TEN HAG was sacked by Bayer Leverkusen after just two matches due to FIVE major problems.

The former Manchester United was dumped by his new German side after failing to win either of his opening Bundesliga games.

Erik ten Hag at a press conference.

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Bayer Leverkusen dumped Erik ten Hag due to five major issuesCredit: Getty
Xabi Alonso, Real Madrid's coach, coaching during a match.

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The Dutchman failed miserably in the wake of title winner Xabi AlonsoCredit: AFP

Ten Hag’s exit came as a shock, with some fans feeling the Dutchman was unfairly treated while following in Xabi Alonso’s footsteps.

Leverkusen bid farewell to numerous title-winning stars including Florian Wirtz, Jeremie Frimpong and Piero Hincapie, with all three now in the Premier League.

And Ten Hag was left to work with a new group of aces whose quality was arguably not as high.

However, Leverkusen bosses were eager to pull the plug after long-standing employees branded him the WORST coach in their club’s history.

BIZARRE APPROACH

Bild now claims there were five key reasons to sack Ten Hag as quickly as possible – with the Dutchman leaving with a DAILY earning of £86,000 thanks to his £5.2million salary and severance package.

First off, it’s claimed that Ten Hag failed to get along with any of his players OR staff – including the ones who arrived with him in July.

He refused to give a “rousing” speech before the first match against Hoffenheim, with the game ending in a 2-1 defeat.

And many of his staff and players were left questioning his bizarre decision to almost downplay the occasion.

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TRANSFER MADNESS

Secondly, the Dutchman was accused of “interfering” with Leverkusen’s transfer plans, including only proposing players from his own agency.

Ten Hag is represented by SEG Football, who represent Rasmus Hojlund and also allegedly batted for Andre Onana and Antony when they joined Man United for huge fees.

Man Utd flop Antony breaks down in tears at Real Betis unveiling
Granit Xhaka celebrating a goal.

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Ten Hag public vetoed Granit Xhaka’s exit, but he joined Sunderland just days laterCredit: PA
Lucas Vazquez of Leverkusen controlling the ball during a soccer match.

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The Germans signed Lucas Vazquez without consulting Ten HagCredit: Getty

Meanwhile, he publicly vetoed Granit Xhaka’s move to Sunderland, despite an internal agreement for the Swiss ace to move on.

And Leverkusen chiefs went directly against Ten Hag when they granted Xhaka his exit just days later.

Elsewhere, the late arrival of Lucas Vazquez from Real Madrid was made without Ten Hag knowing until AFTER the ace’s contract was signed – highlighting his lack of relationship with club transfer guru Simon Rolfes and ultimately indicating Leverkusen’s decision to move forward without him.

TRAINING PAIN

The third reason for Ten Hag’s exit was his insistence on players doing PUSH UPS during training, ranking it as important as working with the ball.

Stars were used to lots of tactical and technical work under predecessor Alonso, now at Real Madrid.

And Ten Hag’s “unusually long” training sessions, packed with dull physical work, left many unmotivated.

Jarell Quansah of Bayer 04 Leverkusen playing soccer.

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New signings like Jarrell Quansah failed to get goingCredit: Getty
Robert Andrich of Bayer Leverkusen reacts during a Bundesliga match.

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There were no tactics on the pitchCredit: AFP

NO CONNECTION

Fourthly, chiefs were left concerned by the “cold” atmosphere around the club, with Ten Hag’s lack of leadership resulting in a major disconnect at the training ground AND the stadium.

Staff ranging from coaches to nutritionists and physios quickly became disillusioned.

And the recent memories of Alonso’s title-winning reign only further compounded the misery.

TACTICAL DISASTERCLASS

Finally, the proof was in the pudding itself.

Leverkusen lost their first match to Hoffenheim, and then threw away a two-goal lead to draw with 10-men Werder Bremen.

Players were said to be baffled by the lack of ideas and general game plan – and it showed.

Individuals were expected to take decisive actions, but none seemed to work in a consistent tactical manner across the field.

And the only thing Leverkusen chiefs have been left to ponder is whether they should have sacked Ten Hag earlier.

Reports claim former Tottenham boss Ange Postecoglou is now being considered as his replacement.

While there is also interest in former Bundesliga managers Marco Rose and Edin Terzic, with a decision set to be made over the international break.

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3 Reasons XRP Enthusiasts Should Still Be Cautious

XRP’s legal battles are finally over. Now it needs to deliver.

XRP (XRP 0.69%) is a cryptocurrency that was launched by Ripple Labs in 2012. Its main purpose is to enable low-cost international money transfers, particularly for banks and financial institutions. It uses XRP as a bridge currency, which essentially means that two parties can exchange different currencies by putting their funds into XRP.

It has gained over 420% in the last year, spurred by an end to its long-running court case and optimism about changing political attitudes toward crypto.

XRP enthusiasts think this is only the beginning. Free from the shackles of legal battles, they think the token can go to the moon. Indeed, analysts at Standard Chartered predict it could soar another 300% or more before 2028.

Person holds chin as they look at screen showing technical charts.

Image source: Getty Images.

Anything is possible in the world of cryptocurrency. For example, if the SEC approves a spot XRP ETF and more companies start to use Ripple’s payment solutions, both could be big drivers of growth. However, speculation is rife, and a lot of potential positive news is already priced in. Moreover, there are a few reasons XRP may not be able to sustain its current price.

1. XRP looks overvalued

One of the challenges in cryptocurrency investing is that we can’t use traditional metrics like P/E ratios to value a project. Blockchain-specific metrics exist, such as network activity, market cap, and fees or revenue. But Ripple Labs is a private company that doesn’t have to publish financial statements, and XRP transaction fees work differently from other blockchains. In itself, the very lack of information is a reason to be cautious.

We know that XRP has a market cap of almost $170 billion as of Aug. 29. If it were a public company, it would be one of the top 100 companies in the U.S. Its market cap is bigger than Nike, Capital One, and S&P Global.

That just doesn’t seem realistic. For sure, the global cross-border payment market is huge. The IMF estimated that the traditional and crypto international payment market was almost 1 quadrillion dollars in 2024. It’s also true that Ripple may be well-positioned to capitalize on — and even drive — changes to the industry.

But right now, only a fraction of international payments go through Ripple’s network.
It’s hard to see how a cryptocurrency created by a team with over 900 employees is comparable to a global icon like Nike with almost 80,000 employees.

2. XRP is not the only payment solution

With the average international remittance fees at over 6%, per the World Bank, the global money-moving space is ripe for disruption. Particularly as U.S. lawmakers recently passed the GENIUS Act, creating a clear framework for stablecoin issuance and reserves.

Now that the regulatory roadblocks are gone, various businesses are trying to work out how to integrate blockchain technology and stablecoins into their operations. Stripe is developing its own blockchain.PayPal has its own stablecoin and “Pay with Crypto” functionality. Visa
has announced a new tokenized asset platform. Mastercard has crypto credit cards and blockchain infrastructure.

Ripple Labs could benefit from a boom in stablecoins and tokenization because it offers custody and blockchain integration solutions, which could be built on the XRP Ledger. But it’s all still to play for. Ripple Labs is only one of several players jostling for position in a space that is undergoing dramatic changes.

3. The SWIFT network is piloting its own blockchain solutions

XRP is slightly outside the payments fray, as its main focus is to facilitate transactions between banks and financial institutions. Its main competitor is the existing SWIFT network, an international cooperative made up of over 11,500 institutions. Indeed, Ripple CEO Brad Garlinghouse told the XRP APEX 2025 conference in June that XRP could take 14% of SWIFT’s international payment transfer volume in the coming five years.

But SWIFT is taking its own steps into the blockchain world. And it isn’t using XRP to do it. Last year, the existing Swift payment system completed a tokenized asset pilot with UBS and Chainlink.

XRP feels overhyped

XRP is an interesting cryptocurrency that uses blockchain technology to solve real-world problems. That fact alone sets it apart from many crypto projects and might earn it a spot in your portfolio. Unfortunately, its market cap seems extremely high for a crypto that is only starting to establish itself in an extremely competitive space.

It’s also important to note that holding XRP is not the same as owning shares in Ripple Labs. Ripple is a private company that owns around 40% of XRP. Not only does that give Ripple significant control over XRP’s price, but it also means XRP holders are vulnerable to shifting business priorities. If other non-XRP avenues, such as its own stablecoin, prove more profitable, that’s the direction the business will follow.

Emma Newbery has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Chainlink, Mastercard, Nike, PayPal, S&P Global, Visa, and XRP. The Motley Fool recommends Standard Chartered Plc and recommends the following options: long January 2027 $42.50 calls on PayPal and short September 2025 $77.50 calls on PayPal. The Motley Fool has a disclosure policy.

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Prep Rally: Bishop Montgomery is making headlines for all the wrong reasons

Hi, and welcome to another edition of Prep Rally. What’s a high school football season without scandal and success. It’s just happening in the opening week.

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Bishop Montgomery woes

Bishop Montgomery announced the firing of its football coach after weeks of turmoil that saw the program lose five transfer students to ineligibility, saw numerous players suspended for leaving the team bench during a loss in Hawaii and finally was forced to forfeit to Mater Dei because it did not have enough players to compete.

Here’s the report on the firing.

Here’s a look at who’s responsible for this latest scandal involving a Catholic school in the Archiocese of Los Angeles.

Valencia quarterback Brady Bretthauer has his team at 2-0.

Valencia quarterback Brady Bretthauer has his team at 2-0.

(Craig Weston)

Valencia has come out with a 2-0 start behind its dynamic duo of quarterback Brady Bretthauer and running back Brian Bonner. Here’s a report from its victory over Chaminade.

Santa Margarita went to overtime to beat Corona Centennial and deliver a first victory for coach Carson Palmer. Here’s the report.

Loyola, despite losing more than a dozen players in the off season to transfers, upset Long Beach Millikan behind Stanford commit Max Meier, who had 10 tackles and two sacks.

Yorba Linda rallied for a win over Edison in a battle of top 25 teams. Here’s the report.

Gardena Serra and Sierra Canyon are showing off great defenses. Here’s the report from Serra’s 47-0 win over Hamilton.

Sierra Canyon defeated Oaks Christian 63-0 and has two shutouts in two games.

St. Frances from Maryland is coming to town to face 2-0 St. John Bosco on Friday.

It took six overtimes before Orange defeated Laguna Hills 46-43.

Here’s a list of top individual performances from Week 1.

Here’s the score list from Thursday. Here’s the score list from Friday.

Here’s this week’s top 25 rankings by The Times.

Here’s the Week 2 schedule.

Hamilton freshman quarterback Thaddeus Breaux.

Hamilton freshman quarterback Thaddeus Breaux.

(Craig Weston)

It was a rough opening game for Hamilton freshman quarterback Thaddeus Breaux. The Yankees lost to Gardena Serra 47-0. But Breaux showed off a strong arm and looked resilient, good qualities for the future. Hamilton plays Crenshaw on Friday. Here’s the report from the Serra loss.

Crenshaw is 2-0 but longtime coach Robert Garrett has not been on the sideline. Here’s a report.

San Pedro and Carson rebounded from losses in their opening games to rout City Section opponents Kennedy and Dorsey.

University coach Bryan Robinson (left) and brother Jason Robinson, an assistant, with their father, EC.

University coach Bryan Robinson (left) and brother Jason Robinson, an assistant, with their father, 80-year-old EC Robinson, a former Locke and Uni coach.

(Eric Sondheimer / Los Angeles Times)

The sons of former Locke and University coach EC Robinson have University at 2-0. Here’s the report.

Marquez is 2-0 and has moved into this week’s top 10 City Section rankings by The Times.

Orange Lutheran (12-0) and JSerra (8-0) continue look like the top two teams in flag football and they will be meeting twice in league play with games on Sept. 30 and Oct. 9.

Redondo Union defeated San Pedro in the championship game to win the LA City Girls Flag Football Classic.

Agoura won the Malibu tournament championship. Kiyomi Kohno was named MVP.

Flag football scores from Monday and Tuesday.

Flag football scores from Wednesday and Thursday.

Girls volleyball

It’s go tiime for Redondo Union in girls volleyball facing two huge tests this week. First up is a home match against 9-0 Marymount on Tuesday, followed by a road match against 7-1 Mater Dei.

Redondo Union is 13-1 and led by four-year starter Abby Zimmerman.

Prep talk

Quarterback Diego Montes of Granada Hills Kennedy passed for 2,508 yards and ran for 1,400 yards as a junior.

Quarterback Diego Montes of Granada Hills Kennedy passed for 2,508 yards and ran for 1,400 yards as a junior.

(Eric Sondheimer / Los Angeles Times)

Your daily look at positive happenings in high school sports:

Two quarterbacks injured last season return to lead their teams to victory.

Kennedy All-City quarterback Diego Montes says, “Do not sleep on the City Section.”

Crespi continues its improvement in football behind sophomore quarterback Chase Curren.

El Camino Real football player Lincoln Elder almost got a perfect score on the SAT, loves math and want to enter the sports data business one day.

Running back Moyo Odebunmi of Cleveland went off for five touchdowns.

Golfer Andrew Rodriguez of La Serna is rising and has a big tournament this month.

Notes . . .

Brandon McCoy gets fired up after a basket for St. John Bosco. He had 28 points in overtime win over Richmond Salesian.

Brandon McCoy gets fired up after a basket for St. John Bosco. He had 28 points in overtime win over Richmond Salesian.

(Nick Koza)

After rumors all summer that he would be transferring from St. John Bosco to Sierra Canyon, standout guard Brandon McCoy made it official, enrolling at the Chatsworth school last week. He didn’t attend St. John Bosco’s opening day of school last month, so it was only a question of the news becoming official. His arrival coincides with the arrival of JSerra transfer Brannon Martinsen at Sierra Canyon. The best player might be Maximo Adams, who’s being recruited by Duke and Kansas. It will make for a quite a Mission League season with Sherman Oaks Notre Dame, Harvard-Westlake and Crespi all having top players.

And don’t feel sorry for St. John Bosco, which picked up sophomore point guard Cam Anderson from Eastvale Roosevelt. . . .

Pauley Pavilion will be the site on Nov. 22 for a Mission League vs. Trinity League basketball challenge that features an 8:30 p.m. matchup of St. John Bosco vs. Harvard-Westlake. Santa Margarita will play Sherman Oaks Notre Dame at 7 p.m. and Sierra Canyon will face JSerra at 5:30 p.m as the featured matchups that begin at 9:30 a.m.. . . .

Cole Knupfer of St. John Bosco has committed to St. Mary’s for baseball. . . .

Sophomore 6-6 forward Evan Willis has transferred from Mater Dei to Crossroads. . . .

Tom Kelly is the new swim coach at Edison. He was at Crean Lutheran. . . .

Westlake pitcher Caden Atkinson has committed to UC San Diego. . . .

From the archives: Tahj Owens

Loyola running back Tahj Owens on his way to scoring five touchdowns against Culver City in 2021.

Loyola running back Tahj Owens on his way to scoring five touchdowns against Culver City in 2021.

(Brody Hannon)

Entering his senior season at Princeton, Tahj Owens is a former Loyola running back who’s become a key player at defensive back for Princeton. He started every game last season.

He was Angelus League MVP at Loyola.

Here’s a story from 2021 telling the story how he had to drive from Chino Hills to attend Loyola in downtown Los Angeles.

Recommendations

From the Los Angeles Times, an opinion piece on if tackle football isn’t safe for girls, why is it safe for boys.

From Runnersworld, a story on a 16-year-old turning pro by signing with Nike.

From the Press Enterprise, a story on Southern Section commissioner Mike West.

Tweets you might have missed

Until next time….

Have a question, comment or something you’d like to see in a future Prep Rally newsletter? Email me at [email protected], and follow me on Twitter at @latsondheimer.

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