Washington Post owner Jeff Bezos on Wednesday announced a “significant shift” to the publisher’s opinion page that led David Shipley, the paper’s editorial page editor, to leave the paper. The changes upended precedent and rattled a media company that has already been shaken by years of turmoil and leadership turnover.
As part of the overhaul, the Post will publish daily opinion stories on two editorial “pillars”: personal liberties and free markets, Bezos teased in an X post on Wednesday morning after announcing the change in a company-wide email. The Post’s opinion section will cover other subjects, too, Bezos wrote, but “viewpoints opposing those pillars will be left to be published by others.”
“I’m confident that free markets and personal liberties are right for America,” Bezos wrote. “I also believe these viewpoints are underserved in the current market of ideas and news opinion. I’m excited for us together to fill that void.”
In announcing the shift, the billionaire media mogul championed the changes as based in American principles anchored in “freedom.” This freedom, Bezos emphasized, “is ethical — it minimizes coercion — and practical — it drives creativity, invention, and prosperity.”
As a basis for the change, Bezos noted that legacy opinion sections have become outdated and have been replaced by the internet.
“There was a time when a newspaper, especially one that was a local monopoly, might have seen it as a service to bring to the reader’s doorstep every morning a broad-based opinion section that sought to cover all views,” Bezos said via X. “Today, the internet does that job.”
David Shipley leaves the Post
Bezos also shared that David Shipley, the Post’s editorial page editor, would part ways with the company. Shipley had been offered a role in leading Bezos’ planned changes but decided to step away instead.
“I offered David Shipley, whom I greatly admire, the opportunity to lead this new chapter,” Bezos wrote on X. “I suggested to him that if the answer wasn’t ‘hell yes,’ then it had to be ‘no.’ After careful consideration, David decided to step away. This is a significant shift, it won’t be easy, and it will require 100% commitment — I respect his decision.”
Bezos said the Post will search for a new opinion editor to “own” the paper’s new editorial direction.
In an email to the Post’s editorial team obtained by CNN, Shipley noted his decision to leave the publisher was reached “after reflection on how I can best move forward in the profession I love.”
“I will always be thankful for the opportunity I was given to work alongside a team of opinion journalists whose commitment to strong, innovative, reported commentary inspired me every day — and was affirmed by two Pulitzer Prizes and two Loeb Awards in two short years,” Shipley wrote in the email.
Shipley’s departure comes after spending four months navigating increasing criticism of the Post from subscribers and its own journalists. During that time, he defended the Post’s decision to not run a cartoon from Ann Telnaes that featured Jeff Bezos – and led to her resignation.
“Not every editorial judgment is a reflection of a malign force,” Shipley said in January. “My decision was guided by the fact that we had just published a column on the same topic as the cartoon and had already scheduled another column — this one a satire — for publication. The only bias was against repetition.”
Post staffers lash out
Bezos’ announcement was immediately met with hostility by some Post staffers who publicly took issue with the move.
Jeff Stein, the publisher’s chief economics reporter, called the overhaul a “massive encroachment by Jeff Bezos” that makes it clear “dissenting views will not be published or tolerated there.”
“I still have not felt encroachment on my journalism on the news side of coverage, but if Bezos tries interfering with the news side I will be quitting immediately and letting you know,” Stein said on X.
Amanda Katz, who stepped down from her role on the Post’s opinion team at the end of 2024, called the change “an absolute abandonment of the principles of accountability of the powerful, justice, democracy, human rights, and accurate information that previously animated the section in favor of a white male billionaire’s self-interested agenda.” And columnist Philip Bump, who pens the Post’s weekly “How to Read This Chart” newsletter, pithily said “what the actual f**k” on Bluesky.
Meanwhile, conservatives are celebrating Bezos’ changes. Charlie Kirk, the Turning Point USA founder, hailed the change as “the culture (…)changing rapidly for the better.” And Elon Musk, whose SpaceX is a direct rival of Bezos’ Blue Origins, succinctly applauded on X, saying “Bravo, @JeffBezos!”
Following the transformation’s internal announcement, Will Lewis, the paper’s publisher and chief executive, noted in an internal email obtained by CNN that the “recalibrate(ion)” was “not about siding with any political party,” but, rather, about “being crystal clear about what we stand for as a newspaper.”
“Doing this is a critical part of serving as a premier news publication across America and for all Americans,” Lewis wrote to Post staffers.
As Shipley exits the Post on Friday, Lewis said he would put together an interim arrangement, adding that the editorial page editor’s replacement would be announced in “due course” — and be “someone who is wholehearted in their support for free markets and personal liberties.”
In the early afternoon, Matt Murray, the Post’s executive editor, chimed in to respond to the “questions” he had received from concerned staffers. In an email obtained by CNN, Murray toed Bezos’ line, reminding staffers that opinion sections are “traditionally the provenance of the owner at news organizations.”
“The independent and unbiased work of The Post’s newsroom remains unchanged, and we will continue to pursue engaging, impactful journalism without fear or favor,” Murray wrote.
Though Murray and Lewis have supported Bezos’ transformation with staffers, New York magazine reports that Lewis’ tune is quite different behind the scenes, having warned Bezos that the changes would likely negatively impact the publication.
Already, Lewis’ private predictions appear to be manifesting. Since the announcement, two former top Post editors have come out against the move. As reported by the Daily Beast, Marty Baron, the Post’s former executive editor, said he was “sad and disgusted” by Bezos’ demands, emphasizing that the Amazon and Blue Origin founder “has prioritized those commercial interests over The Post, and he is betraying The Post’s longstanding principles to do so.”
Meanwhile, Cameron Barr, a former senior managing editor for the Post, said in a LinkedIn post that he would end his “professional association” with the newspaper, saying Bezos’ changes represent “an unacceptable erosion of its commitment to publishing a healthy diversity of opinion and argument.” And David Maraniss, a longtime Post editor and Pulitzer Prize winner, said on Bluesky that he would “never write for (the Post) again as long as (Bezos is) the owner.”
Bezos and the Post’s new direction
The divisive overhaul comes months after Bezos blocked the opinion page’s endorsement of former Vice President Kamala Harris at the eleventh hour, ending decades of precedent. Shipley was among the chorus of voices that sought to convince Bezos not to bar the endorsement, telling staffers in October that “I failed” to do just that.
Since Bezos’ action to block the op-ed, a chain reaction has hounded the Post, with 250,000 Post readers canceling their subscriptions and several opinion staffers resigning in protest. The Post has also hemorrhaged reporters, who have signed with rival publications rather than remain at the ailing outlet.
The massive changeup comes months after Bezos admitted in his defense of the op-ed block that his Amazon and Blue Origin business interests have served as a “complexifier for the Post.”
In the run-up to November’s election, Silicon Valley media moguls were seen cozying up to then-candidate Donald Trump, hedging their bets in the event of a conservative presidential victory. Critics said Bezos was trying to change the Post’s editorial strategy to gain favorability with Trump, who has grown close to Elon Musk, whose SpaceX is a direct rival of Bezos’ own business. Bezos pushed back on those accusations in a rare October op-ed.
“When it comes to the appearance of conflict, I am not an ideal owner of The Post,” Bezos wrote. “You can see my wealth and business interests as a bulwark against intimidation, or you can see them as a web of conflicting interests.”
“Only my own principles can tip the balance from one to the other,” he wrote in October.
Bezos’ “appearance of conflict” is issued from his numerous holdings, which include his Amazon and spacefaring company, Blue Origin. Bezos’ Amazon is also still facing a lawsuit from the FTC and 17 states, who accuse the company of abusing its economic dominance and harming fair competition.
Bezos attended President Trump’s January inauguration. Although Bezos was not the only tech billionaire present, his attendance as the Post’s owner did little to dispel the appearance of conflict.
Most recently, the Post opted to not publish an anti-Musk wrap ad for its print edition; while the Post did greenlight an internal anti-Musk ad, it has not yet clarified the grounds on which the wrap was denied and did not comment when asked whether Bezos was involved with the decision.
Post staffers also have for some time also been discontented with Bezos over his appointment of Lewis as publisher and chief executive. After taking the top job in early 2024, reports quickly emerged of Lewis’ involvement in several controversies, including accusations that he used fraudulent and unethical methods to acquire reporting for articles while working at the Sunday Times. Lewis also came under fire for allegedly attempting to kill a story about his alleged involvement in the phone hacking scandal coverup. Lewis has denied the accusations.
Dissatisfaction with Lewis reached a peak in June, when two Pulitzer Prize-winning Post journalists called for a leadership change amid the reports that questioned Lewis’ journalistic integrity, undermining the Post’s reputation and reporting alike.
Though, as Murray notes, the opinion section is the “provenance” of the Post’s owner — meaning Bezos — the billionaire’s last change resulted in the loss of hundreds of thousands of subscribers, worsening the Post’s financial woes. As the overhaul exacerbates longstanding issues at the storied publication and current and former Post staffers publicly decry the changes, the Post appears to find itself in an emergency.
The American consumer is getting worried about the economy.
Economic jitters are showing up across various sentiment surveys as the Trump administration aims to reconfigure America’s trade relationship with the world and inflation shows signs of getting stuck.
The latest evidence comes from The Conference Board’s Consumer Confidence Index for February, released Tuesday morning. The index fell to 98.3, falling for the third-straight month and marking the largest monthly decline since August 2021, as expectations for inflation in the year ahead climbed. That coincides with the trends reflected in the University of Michigan’s consumer survey for February.
Homebuilders are also growing worried, according to the National Association of Home Builders; even US small businesses, which remain somewhat optimistic about deregulation and tax cuts, are in doubt about the economy’s future. The National Federation of Independent Business’ Uncertainty Index rose in January to its third-highest reading on record.
America’s souring economic mood, driven by worries over President Donald Trump’s aggressive approach to tariffs, is a stunning reversal from the (brief) burst of optimism after President Donald Trump’s election in November.
“The fact that consumers don’t feel like it’s smooth sailing — you’ve got one very obvious suspect. That’s the White House, which is sowing uncertainty just about everywhere, whether it comes to trade policy or foreign policy,” Justin Wolfers, economics professor at the University of Michigan, told CNN’s Pamela Brown. “I genuinely understand why consumers are nervous and I hope this doesn’t turn out to be a self-inflicted own goal.”
The Fed and inflation fears
For the Federal Reserve, it’s critical that Americans have faith that inflation will eventually return to normal in the long run. Central bankers pay close attention to people’s perception of prices because they can be self-fulfilling: If Americans expect inflation to pick up, they modify their spending accordingly.
So far, Fed officials in recent speeches haven’t sounded the alarm on inflation expectations. But some have expressed the importance that expectations remain in check.
If Trump’s policies cause inflation to pick up, “it could be appropriate to ignore or look through an increase in the price level if the impact on inflation is expected to be brief and limited,” St. Louis Fed President Alberto Musalem said at a recent event in New York. “However, a different monetary policy response could be appropriate if higher inflation is sustained, or long-term inflation expectations rise.”
“I would be especially concerned by evidence suggesting (inflation expectations) are becoming unanchored,” Musalem said.
Chicago Fed President Austan Goolsbee said Sunday in an interview with News Nation that the run-up in inflation expectations reflected in the University of Michigan’s survey “wasn’t a great number.”
“But it’s only one month of data. You need at least two or three months for that to count,” he said.
For example, when consumer sentiment fell to a record low in June 2022, as inflation reached a four-decade high, Americans continued to spend.
But today’s economic landscape is rife with uncertainty, which may be affecting people’s spending plans, according to a new Wells Fargo survey released Tuesday. About three-quarters of 3,657 adults and 203 teens surveyed across the country said they plan to reduce their spending, citing uncertainty in the economy.
“Consumer behaviors are shifting,” said Michael Liersch, head of advice and planning at Wells Fargo, in a release. “The value of the dollar and what it is providing may not be as predictable anymore, which seems to be more pronounced for younger Americans.”
The survey showed that 82% of Gen Z adults and 79% of Millennials plan to pare back their spending in the coming months. Eating out or food delivery gave respondents the most sticker shock, according to the survey, followed by a tank of gas and prices for concerts or sporting events.
Richmond Fed president Tom Barkin said Tuesday that he wants to keep interest rates “modestly restrictive” until he gains more confidence inflation is returning to the central bank’s 2% goal, warning about lessons learned from the 1970s.
“It makes sense to stay modestly restrictive until we are more confident inflation is returning to our 2% target,” Barkin said in a speech in Richmond, Va.
“It is critical that we remain steadfast,” he added. “We learned in the ’70s that if you back off inflation too soon, you can allow it to reemerge. No one wants to pay that price.”
The Fed kept its rates on hold at its meeting last month following three consecutive cuts as central bankers grew more cautious about the future path of inflation and the potential effects of new trade, tax, and immigration policies from the Trump administration.
The central bank is expected to keep rates on hold at a meeting next month. But traders are now betting the Fed is likely to resume cutting in June and could do so again in September as they digest a survey that showed consumer confidence fell this month while inflation expectations surged.
The challenge for the Fed, Barkin said Tuesday, is there is a lot of uncertainty now with how policy changes from Washington will impact the economy, as well as with geopolitical conflicts and natural disasters.
Barkin noted that he had seen economic analyses of tariffs levied in 2018 under President Donald Trump’s first administration, and they concluded those duties increased inflation by about 30 basis points.
But he said the policies this time won’t be exactly the same, and policymakers don’t know whether recent experience with inflation will exacerbate or mitigate the impact this time. Barkin questioned whether firms will be more willing to pass costs on or if consumers will resist further price increases.
He also pointed to uncertainty around deregulation, taxes, and spending, as well as immigration changes, and what impact all of that could have on the workforce.
“I prefer to wait and see how this uncertainty plays out and how the economy responds,” he said.
Barkin is the latest Fed official to offer some words of caution about the Fed’s stance. St. Louis Fed president Alberto Musalem last Thursday also aired some concerns about inflation.
“I believe it is appropriate to monitor economic conditions and the outlook before making any further adjustments to the stance of policy,” Musalem said during a speech at the Economic Club of New York.
Fed Chair Jerome Powell also told lawmakers earlier this month that the Fed is not in a rush to adjust interest rates.
“With our policy stance now significantly less restrictive than it had been and the economy remaining strong, we do not need to be in a hurry to adjust our policy stance,” Powell said in testimony before the Senate Banking Committee.
The Fed will get a new look at inflation this Friday with the release of its preferred inflation gauge — the Personal Consumption Expenditures Index (PCE).
A separate measure, the Consumer Price Index (CPI), was hotter than expected for January.
It showed that consumer prices on a “core” basis, which strips out the more volatile costs of food and gas, climbed 0.4% over the prior month — higher than December’s 0.2% monthly gain and the largest monthly rise since April 2023.
Atlanta Federal Reserve president Raphael Bostic told Yahoo Finance last week that while interest rate cuts are still on the table this year, following the hotter-than-expected CPI reading from January, “I think the biggest question right now is whether that data point represents a new trend or just a bump in the road.”
Barkin argues that CPI isn’t as good a measure as PCE because it doesn’t account for substitutions as well.
If beef gets pricey and thus less popular, the PCE basket reflects that people move to an alternative, such as chicken. In contrast, the CPI is more static and is weighted more toward housing costs — which have been slow to come down.
“If headwinds persist, we may well need to use policy to lean against that wind,” said Barkin. “But for now, I take comfort in the significant drop of inflation from its peak and look forward to further progress.”
U.S. stocks struggled on Tuesday, with the S&P 500 and the Nasdaq touching one-month lows as a dour consumer confidence report put mounting economic uncertainties into sharp relief.
The S&P 500 and the Nasdaq both notched their fourth consecutive sessions in the red, while the Dow ended the day modestly higher.
“This is clearly a risk-off day and a continuation of a risk-off month,” said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.
“Many companies are expressing caution about the direction of consumer spending at the moment and today’s consumer confidence number bears that out.”
The mood of the consumer, who props up about 70% of U.S. GDP, has dimmed considerably in February, according to The Conference Board’s consumer confidence index, which registered its steepest monthly drop since August 2021.
Rising consumer uncertainties were laid bare by an 11.3% plunge in the near-term expectations component, well below the level associated with impending recession, suggesting Americans are growing anxious about the potential negative economic impact of the policies of President Donald Trump’s administration.
Tuz said the political environment was not helping.
“Headlines have been pretty dramatic … and as a result consumers and maybe businesses are sitting on their hands to see how things shake out before making major purchasing decisions or other business decisions,” Tuz said.
“There are just lots of reasons to put off buying things today, including stocks.”
Survey data shows rising uncertainties
Richmond Federal Reserve President Tom Barkin said on Tuesday that current uncertainties call for a measured, cautious approach to monetary policy.
Interest-rate futures imply the U.S. Federal Reserve will hold its key interest rate steady for the first half of the year, according to data compiled by LSEG.
The CBOE market volatility index (.VIX), opens new tab, widely known as the “fear index,” spiked to its highest level since January 27.
Bitcoin , often viewed as a barometer of investor risk appetite, dropped 6.1%.
US stocks closed mixed on Tuesday as President Donald Trump’s revived tariff threats and potential toughening of China curbs weighed on market optimism while new data signaled fears over future economic growth.
Consumer confidence plummeted in February, notching its biggest monthly decline in nearly four years as 12-month inflation expectations jumped and recession fears escalated.
The tech-heavy Nasdaq Composite (^IXIC) finished the volatile trading day down around 1.3%, dragged down by shares of Magnificent Seven players like Nvidia (NVDA) and Tesla (TSLA). The benchmark S&P 500 (^GSPC) dropped roughly 0.4%, while the Dow Jones Industrial Average (^DJI) reversed earlier session declines to end the day in the green, up about 0.4%.
Some of the biggest market moves also came from the cryptocurrency space, where the price of bitcoin (BTC-USD) tumbled below $90,000 for the first time since November.
Bitcoin touched a low closer to $86,000 in the early morning hours, its lowest level since early November. Prices stabilized to just around $88,000 at the market close.
Meanwhile, the price of ether (ETH-USD), the world’s second-largest cryptocurrency, fell around 6% to just over $2,500, bouncing off of its session lows. Crypto-related stocks, including Coinbase (COIN) and Strategy (MSTR), were also under pressure throughout the trading day.
Trump’s signal that his trade overhaul isn’t over has unsettled markets wondering about the impact on growth prospects. Investors are parsing his brief comment that tariffs on Mexico and Canada will go forward next week.
The benchmark 10-year Treasury yield (^TNX) fell to its lowest level this year, around 4.3%, amid growing belief that tariffs will weaken the US economy. That prompted traders to bump up bets on interest rate cuts.
At the same time, his administration is said to be pursuing tougher chip curbs on China, after Trump issued a directive to limit investments between the US and the top trading partner. AI chip giant Nvidia’s (NVDA) stock was in focus with its highly anticipated earnings due Wednesday. The company is already facing headwinds from tariffs and export controls.
Elsewhere, Tesla stock (TSLA) fell more than 8% Tuesday after the electric vehicle maker reported sales in Europe dropped 45% in January.
Advertising and marketing company Zeta Global (NYSE:ZETA) announced better-than-expected revenue in Q4 CY2024, with sales up 49.6% year on year to $314.7 million. Revenue guidance for the full year exceeded analysts’ estimates, but next quarter’s guidance of $254 million was less impressive, coming in 1.2% below expectations. Its GAAP profit of $0.06 per share was $0.02 above analysts’ consensus estimates.
Zeta (ZETA) Q4 CY2024 Highlights:
Revenue: $314.7 million vs analyst estimates of $295 million (49.6% year-on-year growth, 6.7% beat)
EPS (GAAP): $0.06 vs analyst estimates of $0.04 ($0.02 beat)
Adjusted EBITDA: $70.38 million vs analyst estimates of $65.84 million (22.4% margin, 6.9% beat)
Management’s revenue guidance for the upcoming financial year 2025 is $1.24 billion at the midpoint, beating analyst estimates by 2.4% and implying 23.3% growth (vs 37% in FY2024)
EBITDA guidance for the upcoming financial year 2025 is $256.5 million at the midpoint, above analyst estimates of $241 million
Operating Margin: 2.2%, up from -15.1% in the same quarter last year
Free Cash Flow Margin: 6.2%, down from 9.6% in the previous quarter
Market Capitalization: $5.14 billion
“At Zeta, we’ve consistently skated to where the puck is going. Our early investments in AI and first-party data are resonating with customers and prospects, fueling our record fourth quarter results and contributing to our market share gains,” said David A. Steinberg, Co-Founder, Chairman, and CEO of Zeta.
Company Overview
Co-founded by former Apple CEO John Sculley, Zeta Global (NYSE:ZETA) provides software and data analytics tools that help companies market their products to billions of customers.
Advertising Software
The digital advertising market is large, growing, and becoming more diverse, both in terms of audiences and media. As a result, there is a growing need for software that enables advertisers to use data to automate and optimize ad placements.
Sales Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Thankfully, Zeta’s 29.9% annualized revenue growth over the last three years was impressive. Its growth beat the average software company and shows its offerings resonate with customers, a helpful starting point for our analysis.
Zeta Quarterly Revenue
This quarter, Zeta reported magnificent year-on-year revenue growth of 49.6%, and its $314.7 million of revenue beat Wall Street’s estimates by 6.7%. Company management is currently guiding for a 30.3% year-on-year increase in sales next quarter.
Looking further ahead, sell-side analysts expect revenue to grow 20.2% over the next 12 months, a deceleration versus the last three years. Still, this projection is noteworthy and suggests the market sees success for its products and services.
Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) stock benefiting from the rise of AI. Click here to access our free report one of our favorites growth stories.
Customer Acquisition Efficiency
The customer acquisition cost (CAC) payback period represents the months required to recover the cost of acquiring a new customer. Essentially, it’s the break-even point for sales and marketing investments. A shorter CAC payback period is ideal, as it implies better returns on investment and business scalability.
Zeta is extremely efficient at acquiring new customers, and its CAC payback period checked in at 1.4 months this quarter. The company’s rapid recovery of its customer acquisition costs indicates it has a highly differentiated product offering and a strong brand reputation. These dynamics give Zeta more resources to pursue new product initiatives while maintaining the flexibility to increase its sales and marketing investments.
Key Takeaways from Zeta’s Q4 Results
We were impressed by Zeta’s optimistic EBITDA guidance for next quarter, which blew past analysts’ expectations. We were also glad its full-year EBITDA guidance trumped Wall Street’s estimates. On the other hand, its revenue guidance for next year suggests a significant slowdown in demand and its revenue guidance for next quarter fell slightly short of Wall Street’s estimates. Overall, we think this was still a decent quarter with some key metrics above expectations. The market seemed to focus on the negatives, and the stock traded down 7.3% to $19.10 immediately after reporting.
Is Zeta an attractive investment opportunity right now? The latest quarter does matter, but not nearly as much as longer-term fundamentals and valuation, when deciding if the stock is a buy. We cover that in our actionable full research report which you can read here, it’s free.
UnitedHealth Group (NYSE:UNH) experienced a share price decline of 11% over the past week, amid a mixed landscape for major U.S. stock indexes grappling with a broader market downturn. The announcement of a $2.10 cash dividend, set to be paid in March 2025, was among the key events during this period, potentially impacting investor sentiment due to its financial implications. As the Dow Jones recorded its worst week since October last year and tech stocks faced significant pressure, UnitedHealth Group was not immune to these market forces. Notably, the Dow managed a slight recovery of 0.2%, but the overall tech and healthcare segments remained under stress, influencing UNH’s recent performance. The decline aligns with a period where investors are keeping a keen eye on upcoming economic indicators, possibly fueling volatility and affecting risk assessment across various sectors.
Despite the recent week’s challenges, UnitedHealth Group (NYSE:UNH) has shown resilient growth over the last five years, achieving a total shareholder return of 83.80%. Even so, over the past year, the company underperformed against the US Healthcare industry and the broader US market. A key influencer was an $8.3 billion one-off loss reported in December 2024, impacting earnings. Additionally, legal challenges, including a class action lawsuit in January 2024 over their acquisition of Change Healthcare, may have affected investor confidence.
In September 2022, UnitedHealth’s partnership with Walmart to expand healthcare services highlighted a proactive expansion strategy, which could have positively influenced its longer-term returns. Despite these efforts, the company’s high price-to-earnings ratio compared to peers suggests a relative overvaluation within the industry, possibly weighing on investor sentiment. These elements collectively paint a comprehensive picture of UnitedHealth’s share performance over recent years, reflecting both growth initiatives and challenges faced in the marketplace.
Lucid Motors is changing CEOs for the first time in nearly six years. The company announced Tuesday that Peter Rawlinson is stepping down from the CEO and CTO roles that he’s held since before the company went public. Rawlinson has also left Lucid’s board, according to a regulatory filing.
Lucid appointed its chief operating officer Marc Winterhoff as its interim CEO. Rawlinson will serve as “strategic technical advisor” to Turqi Alnowaiser, who is chairman of the board and a top executive at Saudi Arabia’s sovereign wealth fund — Lucid’s majority owner.
The leadership change comes at a critical time for Lucid Motors, which just launched its Gravity SUV late last year. Lucid Motors has high hopes for the electric SUV. The company’s first vehicle — the Air sedan — has struggled to come anywhere near the sales targets it once projected when it went public in 2021. The Gravity is still in the process of being slowly rolled out to early customers, employees, and other people close to the company.
“Now that we have successfully launched the Lucid Gravity, I have decided it is finally the right time for me to step aside from my roles at Lucid,” Rawlinson said in a statement. “I am incredibly proud of the accomplishments the Lucid team have achieved together through my tenure of these past twelve years. We grew from a tiny company with a big ambition, to a widely recognized technological world leader in sustainable mobility.”
Rawlinson can occupy the advisor role until February 2027, and will receive a “monthly payment of $120,000 for services rendered,” along with a complimentary Lucid EV, health insurance, a $2 million stock grant, and more, according to a regulatory filing.
Rawlinson came to Lucid Motors in 2013 back when it was still known as Atieva, and was primarily focused on developing battery packs and other EV powertrain components. He had previously been employed at Tesla as the chief engineer of the Model S sedan — a fact that Tesla CEO Elon Musk has repeatedly tried to obscure.
Lucid announced Rawlinson’s transition alongside its financial results for the fourth quarter of 2024, as well as for the full year.
The company ultimately delivered 10,241 EVs across 2024, up from just 6,001 in 2023. That generated $808 million in revenue, up from $595 million in 2023. But Lucid still lost a whopping $2.7 billion last year. It lost $2.8 billion in 2023. Lucid said Tuesday that it plans to double production to around 20,000 EVs in 2025.
Lucid finished the year with $1.6 billion in cash and equivalents. It repeatedly tapped Saudi Arabia for billions in funding throughout 2024 to help stay afloat until the launch of the Gravity — despite Rawlinson telling the Financial Times last March that he felt it was “dangerous” to behave like the Kingdom was a source of “bottomless wealth.”
Winterhoff said on a conference call Tuesday that Rawlinson “will not be part of the day-to-day business,” and said the former CEO will only be involved if Lucid’s chairman asks.
“If there are questions arising and the chairman thinks it is worthwhile to involve Peter, then he will, but it’s up to the discretion of the chairman to have that interaction,” Winterhoff said.
Rawlinson was not part of the call — something that analyst John Murphy from Bank of America called out as odd.
“I’m just curious, you know, why Peter isn’t present, and why you would make an announcement like this without a successor?” he asked. “I know it’s a tough question, but I mean, it’s the one that everybody’s thinking.”
“I think we clearly announced that Peter made the decision that after 12 years, it’s now a good time to pass the baton,” Winterhoff said.
The S&P 500 Index ($SPX) (SPY) on Tuesday closed down -0.47%, the Dow Jones Industrials Index ($DOWI) (DIA) rose +0.37%, and the Nasdaq 100 Index ($IUXX) (QQQ) fell by -1.24%. March E-mini S&P futures (ESH25) fell -0.42%, and March E-mini Nasdaq futures (NQH25) fell -1.20%.
Tech stocks were weak again Tuesday, dragging the rest of the stock market lower. The Nasdaq 100 index on Tuesday fell -1.24%, adding to the losses of -2.06% last Friday and -1.11% on Monday. There was a risk-off tenor in the markets due to tariff risks and concern about the US economy with Tuesday’s sharp drop in US consumer confidence.
Some chip stocks also showed weakness on reports that the Trump administration is preparing new restrictions on chip sales to China. By contrast, the US stock market saw underlying support from Tuesday’s sharp -11 bp decline in the 10-year T-note yield.
Tuesday’s Feb Conference Board US consumer confidence index fell sharply by -7.0 points to an 8-month low of 98.3, much weaker than expectations for a decline to 102.5. The -7.0 point drop was the largest drop in 2-1/2 years and was the third consecutive monthly decline.
Cryptocurrency prices fell sharply with the risk-off tenor in the markets. Bitcoin (^BTCUSD) fell more than -6%, and Ether (^ETHUSD) fell more than -5%, adding to Monday’s loss of -6%. In addition to the risk-off environment, the crypto sector was hurt by last week’s news of the massive $1.5 billion Ether hack of the Bybit crypto exchange, and a memecoin scandal involving Argentina President Milei.
The Trump administration plans to tighten chip controls on China and is also pressuring European and Asian countries to tighten restrictions on selling chips and chip-making equipment to China, according to a report Tuesday by Bloomberg. The administration is also considering sanctions on specific Chinese companies to restrict China’s ability to build a domestic chip industry for supporting AI and military capabilities.
President Trump on Monday afternoon, at a joint press conference with French President Macron, said that US tariffs on imports from Mexico and Canada will go ahead “on time, on schedule.” Mr. Trump delayed the tariffs by a month until March 4 due to new border measures implemented by both Canada and Mexico. Mr. Trump on Monday also said he plans to go ahead with the “reciprocal tariffs” that he previously said would be ready by April 1. Separately, President Trump recently issued a memorandum to the US Committee on Foreign Investment in the US (CFIUS) instructing the Committee to limit China’s ability to invest in key US sectors such as technology, food, farmland, minerals, natural resources, ports, and shipping terminals.
US home prices showed solid increases in December. The Dec S&P Corelogic US home price index rose +0.52% m/m and +4.48% y/y, slightly stronger than expectations of +0.40% m/m and +4.41% y/y, and was stronger than Nov’s revised report of +0.44% m/m and +4.35% y/y. Meanwhile, the Dec FHFA US house price index rose +0.4% m/m and +1.4% y/y, which followed Nov’s revised report of +0.4% m/m and +0.9% y/y.
Stock investors are looking ahead to Nvidia’s earnings report after Wednesday’s close. This remainder of this week’s USeconomic calendaris busy. Thursday’s US Q4 GDP report is expected to show an increase of +2.3% (q/q annualized), with a +4.1% increase in personal consumption. Friday’s Jan PCE price index report, the Fed’s preferred inflation measure, is expected to ease slightly to +2.5% y/y from December’s +2.6%, and the core index is expected to ease to +2.6% y/y from December’s +2.8%. The expected Jan PCE reports of +2.5% nominal and +2.6% core would leave those measures at or above their 3-3/4 year lows posted in 2024 of +2.1% and +2.6%, respectively, and well above the Fed’s +2% inflation target.
The markets are discounting the chances at 3% for a -25 bp rate cut at the next FOMC meeting on March 18-19.
Overseas stock markets Tuesday closed lower. The Euro Stoxx 50 fell -0.11%. China’s Shanghai Composite Index closed down -0.80%. Japan’s Nikkei Stock 225 closed down -1.39%.
Interest Rates
March 10-year T-notes (ZNH25) rose +22 ticks. The 10-year T-note yield fell by -10.8 bp to 4.293%. March T-note prices fell on Tuesday’s weak US consumer confidence report and on increased safe-haven demand tied to weakness in tech stocks and cryptocurrencies.
T-note prices were undercut by supply overhang as the Treasury sold $70 billion of 5-year T-notes on Tuesday. On Wednesday, the Treasury will sell $28 billion of floating-rate 2-year T-notes and $44 billion of 7-year T-notes.
European bond yields fell on Tuesday. The 10-year German bund yield fell -2.0 bp to 2.458%. The 10-year UK gilt yield fell -5.5 bp to 4.509%.
Swaps are discounting the chances at 100% for a -25 bp rate cut by the ECB at the March 6 policy meeting.
US Stock Movers
All the Magnificent Seven stocks closed lower on Tuesday. Tesla (TSLA) was the largest loser of the Magnificent Seven, with a loss of more than -8% on reports that Tesla sales in Europe in January tanked by -45% y/y while overall European EV sales rose +37%.
Some chip stocks traded lower Tuesday on reports that the Trump administration is planning new restrictions on chip sales to China. Also, Nvidia (NVDA) fell more than -3% and showed volatility ahead of its earnings report after Wednesday’s close. Marvell Technology (MRVL) and Intel (INTC) fell by more than -5%.
Crypto stocks traded lower on Tuesday with the sharp sell-off in cryptocurrencies. MicroStrategy (MSTR) fell more than -11%, MARA Holdings (MARA) fell more than -10%, and Coinbase (COIN) and Riot Platforms (RIOT) fell more than -6%.
Restaurant stocks were in the spotlight after the National Restaurant Association Tuesday urged President Trump in a letter to exempt food and drinks from tariffs, which could total as much as $12 billion and cut profits for small restaurant owners by as much as 30%. Darden Restaurants (DRI), Texas Roadhouse (TXRH), and Wingstop (WING) rose by more than +1%, but the Cheesecake Factory (CAKE) fell -1.2%.
Home Depot (HD) rose more than +2% after management said it expects comparable sales to rise +1% in the fiscal year through January 2026, although the company expects continued consumer caution on large home improvement projects.
Zoom Communications (ZM) fell by more than -8% after negative management guidance.
Eli Lilly (LLY) rose more than +2% after the pharma company cut prices for its obesity drug Zepbound
To combat competition.
Krispy Kreme (DNUT) plunged -22% after disappointing revenue guidance.
Earnings Reports (2/26/2025)
Verisk Analytics Inc (VRSK), NRG Energy Inc (NRG), Lowe’s Cos Inc (LOW), TJX Cos Inc/The (TJX), Invitation Homes Inc (INVH), Agilent Technologies Inc (A), APA Corp (APA), Universal Health Services Inc (UHS), Synopsys Inc (SNPS), eBay Inc (EBAY), NVIDIA Corp (NVDA), FirstEnergy Corp (FE), Salesforce Inc (CRM), Paramount Global (PARA).
FRANKFURT, Germany (AP) — Germany’s businesses have been frustrated by government inaction on the stagnating economy.
Sunday’s national election raises hopes of a stable two-party coalition of conservatives and center-left Social Democrats, with center-right leader Friedrich Merz as chancellor. But will it take the swift action business leaders are calling for?
Here’s what leading economists and business figures in Germany are saying:
Christian Klein, CEO of business software maker SAP SE
“Tackling key issues, such as too much regulation, a lack of digitalization, and a slow economy, requires bold action.
“Germany needs a government that is open to more innovation, a competitive mindset, and removing excessive regulation that stifles progress and growth – and it needs it now.”
Luxury automaker BMW AG
“We expect from the future federal government that it quickly, comprehensively and sustainable improves the business environment for German industry facing global competition. That includes a competitive tax policy, the pragmatic reduction of bureaucracy and regulation as well as a competitive and business oriented shift in policy at the level of the EU.”
Peter Adrian, CEO of real estate firm Triwo AG and president of German Chamber of Industry and Commerce
“The high voter turnout (82.5%) shows that it’s not just the business community that senses the enormous importance of the decisions that lie ahead. A change of direction is overdue.”
Carsten Brzeski, chief of global macro at ING bank.
The new government must “focus on getting the economy out of its structural stagnation…if the main motivation of such a coalition is to prevent the (far-right) AfD from winning the next election – a likely scenario if the next government doesn’t succeed.”
Thorsten Groeger, head of the IG Metall industrial union in Lower Saxony and Saxony Anhalt regions
“Time is pressing, because more and more companies are cutting jobs and deciding against investing in our location here at home. Billions have to flow into energy security, modern streets and rail lines, high speed networks, innovative technologies, strong education, affordable housing and a welfare state that leaves no one behind.”
Peter Leibinger, head of the Federation of German Industries
“The parties must now prove that they have understood the seriousness of the situation and are prepared to act courageously, quickly and together: the dangerous downward spiral of missing investment and weak growth must be stopped.”
Holger Schmieding, chief economist Berenberg Bank
“Now for the bad news. Populist parties from the political fringes (AfD and the left-wing The Left) have garnered more than one third of seats together. The populists can thus veto any loosening of the debt brake enshrined in the constitution. At a time when it is crucial to raise spending for the military and Ukraine and ease the tax burden for workers and firms, Germany may struggle to find the fiscal space to do so.”
