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12 minutes ago
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Gemini files IPO bid amid crypto rally while bleeding $282m
US-based Gemini crypto exchange is striking while the iron is hot, filing for an initial public offering in a raging crypto bull market even as it racks up heavy losses. The Winklevoss-led company lost $282 million in the first half of 2025, according to its IPO filing made public Friday. Gemini plans to list on Nasdaq under the ticker GEMI and said it may use the proceeds to repay debt. The firm reported $2.1 billion in liabilities as of June 30, including loans from Galaxy and NYDIG. Despite the mounting losses, Gemini is betting that favourable market conditions and renewed investor interest in crypto stocks will help it land a successful debut. The exchange generated just $68.6 million in revenue in the first six months of 2025, down from $74.3 million during the same period last year, while losses ballooned more than sixfold. One of us Gemini's filing comes on the heels of Bullish's blockbuster IPO, which raised $1.1 billion and saw shares surge 228% on the first day of trading, giving it a $10 billion valuation. The Peter Thiel-backed exchange became the second publicly traded crypto exchange in the US, after Coinbase. Gemini will be the third once it lists. Gemini's filing adds to a wave of digital asset firms tapping public markets as investor appetite in all things crypto rebounds. Stablecoin issuer Circle went public in June and quickly hit a $40 billion market cap, becoming the first publicly traded stablecoin firm in the US. It has since slipped to just over $37 billion. Galaxy Digital, led by Mike Novogratz, also joined the Nasdaq this year to gain deeper access to US capital markets. Galaxy shares dipped in the days following its IPO but have since rebounded, gaining around 12% since then. Crypto market movers Bitcoin has lost 1% in value over the past 24 hours and is trading at $117,710. Ethereum is down 4% in the same period to $4,460. What we're reading New York's top lawyer said Ethereum is a security. A crypto lawyer is coming for her job — DL News Citigroup considers custody and payment services for stablecoins, crypto ETFs — Reuters DeFi Tokens Surge — But These Hidden Gems Could Shine Next — Unchained Why Ethena's USDe got a 1,250% risk weighting in S&P Global's Sky credit rating — DL News Kyle Baird is DL News' Weekend Editor. Got a tip? Email at kbaird@ Sign in to access your portfolio
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21 minutes ago
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Forget President Donald Trump's Tariffs! There's a Far More Sinister Worry for Wall Street.
Key Points The S&P 500, Nasdaq Composite, and Dow Jones Industrial Average have navigated their way through historical bouts of volatility in 2025. Donald Trump's tariff and trade policy has stoked inflationary fears and increased uncertainty on Wall Street. However, a historically pricey stock market implies corporate earnings quality is of the utmost importance. 10 stocks we like better than S&P 500 Index › It's been quite a memorable year for Wall Street, with the broad-based S&P 500 (SNPINDEX: ^GSPC), growth stock-propelled Nasdaq Composite (NASDAQINDEX: ^IXIC), and ageless Dow Jones Industrial Average (DJINDICES: ^DJI) navigating their way through historical bouts of volatility. For example, during a one-week stretch in April, the S&P 500 endured its fifth-biggest two-day percentage decline in 75 years, as well as logged its largest single-day point gain since its inception. The benchmark index has also delivered one of its strongest three-month returns since 1950. With the S&P 500 and Nasdaq Composite rocketing to fresh all-time highs, and the Dow Jones just a stone's throw away from surpassing its record close set in December, it would appear nothing can slow down this bona fide wealth-creating machine. But things may not be as unbreakable as they seem. While a lot of attention is currently being paid to President Donald Trump's tariff and trade policy and how it could adversely impact Wall Street, a far more sinister worry lies in wait that can act as a significant drag on stocks. President Trump's tariffs bring uncertainty and inflation to the forefront On April 2, following the close of trading, Donald Trump unveiled his long-touted tariff and trade policy. It included a sweeping 10% global tariff, as well as introduced higher "reciprocal tariff rates" on dozens of countries that have historically had adverse trade imbalances with America. The president's primary goals with his tariff and trade policy are to promote domestic manufacturing, keep American goods price-competitive with those being brought in from foreign markets, and to pad the federal government's pocketbooks with tariff revenue. Though tariff revenue is undeniably climbing, so is the level of uncertainty associated with these tariffs. One of the more prominent issues with President Trump's tariff and trade policy is there's been little follow-through or consistency. There have been two separate 90-day pauses on reciprocal tariffs with the world's No. 2 economy by gross domestic product, China, and the president has adjusted the effective date, reciprocal tariff rate, and/or goods subject to tariffs for other countries on a variety of occasions. Wall Street demands predictability, and this administration hasn't been providing it. Investors are also worried about the potential inflationary impact of the president's tariff policies. A report ("Do Import Tariffs Protect U.S. Firms?") issued in December by four New York Federal Reserve economists working for Liberty Street Economics raised a good point about the lack of clarity Trump's tariffs have offered between input and output tariffs. Output tariffs are duties placed on finished products imported into the U.S., while input tariffs are duties applied to goods used to complete a finished product domestically. Ideally, tariffs are being applied to finished products, which can allow domestic manufacturers to be more price-competitive with imported goods. However, some of Trump's tariffs are being directed at goods used to complete the manufacture of products in the U.S. Input tariffs often end up increasing domestic manufacturing costs and can drive the prevailing rate of inflation higher. The other concern, which builds on the report from the four New York Fed economists, is historical precedent. The authors examined the performance of public companies whose stock struggled when Trump's China tariffs were introduced in 2018-2019. On average, companies directly impacted by Trump's China tariffs during his first term in the Oval Office saw their sales, profits, employment, and labor productivity all decline from 2019 through 2021. While there are ample reasons to believe President Trump's tariffs are a genuine concern for stocks, a far bigger threat to upend the bull market exists. Wall Street has a serious earnings quality problem As of the closing bell on Aug. 13, the S&P 500's Shiller P/E Ratio closed at a multiple of almost 39. With the exception of the dot-com bubble and the first week of 2022, this is the third-priciest stock market in history, when back-tested 154 years. Although historical precedent portends trouble for the stock market, valuations have the ability to remain extended if companies are delivering strong earnings growth and offering analyst-topping guidance. While many of the stock market's leading businesses have made a habit out of surpassing consensus profit expectations, a dive beneath the headline figures uncovers just how poor the earnings quality truly is on Wall Street. Ideally, the companies responsible for pushing the broader market higher should be letting their operating performance do the talking. But quite a few prominent businesses have been buoyed by unsustainable and/or non-innovative income sources that partially mask their true operating performance. One of the more prominent examples of a high-flying stock with abysmal earnings quality is Tesla (NASDAQ: TSLA). This member of the "Magnificent Seven" is North America's leading electric vehicle (EV) manufacturer and a business valued at $1.1 trillion, as of this writing. Through the first half of 2025, Tesla generated $2.138 billion in pre-tax income. However, $1.649 billion (77.1%) traced back to automotive regulatory credits given to the company for free by federal governments and net interest income (interest earned on cash less interest paid on debt). President Trump's "Big, Beautiful Bill" will eliminate Tesla's automotive regulatory credits in the U.S. For a company expected to be a market leader, Tesla has been consistently reliant on income sources that have absolutely nothing to do with selling EVs and its energy generation and storage operations. To boot, earnings-per-share (EPS) estimates for future years have been falling with some level of consistency for nearly three years. It's a somewhat similar story for red-hot artificial intelligence (AI) stock Palantir Technologies (NASDAQ: PLTR). Palantir's sought-after AI-driven software-as-a-service Gotham and Foundry platforms are delivering sizzling growth, with full-year sales now projected to climb by 45% in 2025. But one of the interesting quirks about Palantir is that it generates a sizable percentage of its pre-tax income from interest earned on its cash. Though I'm not faulting Palantir for bringing in $106.7 million in interest income through the first six months of 2025, it's worth noting that this represents more than 19% of its pre-tax income. A company that's valued at a completely unjustifiable price-to-sales ratio of 135 should be doing all the talking with its operating performance. Instead, Palantir's trailing-12-month P/E ratio of more than 610 is being partially propped up by non-innovative interest income earned from its cash. Tesla and Palantir aren't unique examples -- they just happen to be some of the most prominent businesses. If earnings quality remains poor or suspect, premium valuations can easily become the stock market's downfall. Should you invest $1,000 in S&P 500 Index right now? Before you buy stock in S&P 500 Index, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and S&P 500 Index wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $663,630!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,115,695!* Now, it's worth noting Stock Advisor's total average return is 1,071% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies and Tesla. The Motley Fool has a disclosure policy. Forget President Donald Trump's Tariffs! There's a Far More Sinister Worry for Wall Street. was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
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21 minutes ago
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This Underrated Artificial Intelligence (AI) Stock Has Room to Run
Key Points Google Search is putting up impressive growth figures. Google Cloud is a huge beneficiary of the generative AI arms race. 10 stocks we like better than Alphabet › Finding underrated artificial intelligence (AI) stocks isn't an easy task. There's a ton of hype and expectations built into this investment trend, and finding one that's underrated is easier said than done. However, I think there's an underrated AI stock that everyone knows about that's ripe for strong gains over the next few years: Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). While Alphabet may have stumbled out of the gate in the generative AI arms race, it's now near the top of the leaderboard. Alphabet also has other businesses that are doing quite well, giving the stock even more upside. Google Search is still growing despite rising competition Alphabet is the parent company of many businesses, including Google, YouTube, the Android operating system, and Waymo. While this may sound like a wide reach, a lot of money comes from advertising, specifically from the Google search engine. There is a fear in the investing community that Google search will be replaced by generative AI, which would be disruptive to Google. However, Google isn't just going silently into the night. It already integrated AI search overviews, which provide a generative AI summary at the top of each result. This feature has become quite popular and is likely enough to bridge the gap between a full AI experience and a traditional search. In Q2, Google Search's revenue rose 12% year over year, which is an acceleration from Q1's 10% growth. That's not a sign of a struggling business unit, so investors should likely be less bearish on Google Search. Alphabet also has another segment that's thriving in the AI arms race: Google Cloud. Cloud computing is a growing industry Google Cloud has been one of Alphabet's fastest-growing divisions over the past few years. Cloud computing is seeing two major tailwinds driving its growth: a general move to the cloud for business workloads and AI workloads. Google Cloud had a phenomenal Q2, with revenue rising 32% year over year and its operating margin improving from 11.3% last year to 20.7% this year. The cloud computing industry is expected to continue growing rapidly for the foreseeable future, with Grand View Research forecasting the market to grow from $752 billion in 2024 to $2.39 trillion by 2030. That's a huge expansion, and Google Cloud's third-place position in the industry will allow it to continue grabbing market share. Alphabet is clearly doing quite well, but what makes it underrated? Alphabet's stock is quite cheap compared to the S&P 500 Despite Alphabet's success, it still trades at a discount to the broader market, as measured by the S&P 500. Alphabet is trading for 20.2 times forward earnings compared to the S&P 500's 23.7. Because of its hefty discount to the market, investors likely expect Alphabet to underperform the market. However, Alphabet has continuously displayed strong growth over the past few years, and the fears many investors had regarding its base business are being disproven each quarter. The reality is that Alphabet is a strong contender in the AI arms race and has a leading generative AI model in Gemini. With other strong businesses under Alphabet's umbrella, it makes for a strong company that's built to weather any economic situation. I think it's an excellent buy at these levels, and won't be surprised to see it be one of the top-performing stocks over the next five years. Should you buy stock in Alphabet right now? Before you buy stock in Alphabet, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Alphabet wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $663,630!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,115,695!* Now, it's worth noting Stock Advisor's total average return is 1,071% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Keithen Drury has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy. This Underrated Artificial Intelligence (AI) Stock Has Room to Run was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
