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Renters had more leverage over landlords in 2025, according to a new report.

Brandon Bell / Getty Images

Key Takeaways

• Apartment vacancies increased to 7.6% in 2025, shifting the market in favor of renters.
• A report from Realtor.com showed that landlords had the advantage in only six of the top 50 housing rental markets.
• Rental vacancies have climbed primarily due to a wave of new apartment construction, as developers responded to mounting affordability pressures with a surge in supply.

For renters, 2025 was a good year—rents fell and new apartment buildings went up.

Rental vacancies rose to 7.6% nationwide in 2025, according to data from Realtor.com, up from 7.2% the prior year, tipping the balance of power toward renters over landlords. Of the top 50 metro areas, 27 posted increases in rental vacancies last year.

“After years of being squeezed by limited inventory, renters are finally seeing the supply wave work in their favor,” said Danielle Hale, Realtor.com chief economist. “While the market isn't uniform everywhere, the broader trend is a move toward a much-needed equilibrium that allows for more flexibility and choice in the housing search."

Why This Matters to You

Housing costs have a significant impact on consumer spending and monetary policy, so a consumer-friendly rental market can boost the broader economy.

Markets with rental vacancies of 7% or higher are generally considered more favorable for renters, according to the report. And while conditions can vary by area, the report found that 44 of the top 50 U.S. metro areas favored renters or were considered balanced, with vacancy rates between 5% and 7%. 

Rental Vacancies Vary by Location

As with home sales, the rental market can vary greatly by location.

For example, rental vacancies in Austin, Texas, jumped to 13.8% in 2025, up from 8.2% in the prior year. The portion of vacant apartments also increased in Buffalo, N.Y., Dallas, Detroit, Houston, Nashville, Tenn. and Jacksonville, Fla. The vacancy increase has been driven in large part by a surge in apartment construction.

Meanwhile, in Pittsburgh, Richmond, Va., and Louisville, Ky., the rental market shifted in favor of landlords in 2025. 

"In the Sun Belt and parts of the Midwest, new construction is helping to create negotiating room for renters,” said Jiayi Xu, economist at Realtor.com. “But in traditionally more affordable areas like Richmond and Pittsburgh, the secret is out; rising demand from out-of-towners is starting to soak up that excess vacancy, proving that renter-friendliness can be fleeting if supply doesn't keep pace with demand."

New Construction Eases Affordability Crunch

Builders completed more than 500,000 rental units in 2025, according to RentCafe estimates, not far off the record high set in 2024. Not only are more apartments being built, but RentCafe also found that affordable housing construction grew by 73% in the five-year period between 2020 and 2024, compared with the prior period.

“Elevated home prices and a shortage of attainable for-sale housing are pushing more residents toward rentals,” wrote Doug Ressler, senior analyst at commercial real estate data firm Yardi Matrix. “For many households, single-family home ownership is simply out of reach—fueling demand for rental housing.”

The increase in apartment construction is also helping to lower rent payments, which fell 1.5% in January from last year. Nationwide, rents have declined for 29 straight months and are now down almost 5% from their summer 2022 peak. 

However, just as with the housing market, affordability remains a concern. While rents have dipped recently, they’re still more than 15% higher than before the pandemic.

Stocks recently traded higher on Wednesday.

Angela Weiss / AFP via Getty Images

Key Takeaways

• The benchmark S&P hadn't moved much through Tuesday's close. But that quiet action obscures more drama within the index.
• More than a fifth of the stocks in the index have moved by at least 20% this year, according to a new analysis.

Wall Street is behaving like Capitol Hill this year. 

As of Tuesday’s close, the S&P 500 was down 0.03% since the start of the year. That's about as unexceptional as it gets—but it belies a lot of churn below the surface. 

According to a recent analysis by Bespoke Investment Group, 117 stocks in the S&P 500 have gained or lost more than 20% so far this year. Meanwhile, just 94 of the index’s components are up or down less than 5%. (Stocks were recently higher; read Investopedia's full coverage of today's trading here.)

Why This Matters to Investors

The stock market's headline number—what the S&P 500 has done this year, which isn't much—tells one story, but stock pickers may find opportunity in the busy action under the hood of the benchmark index.

As in Washington, D.C., wrote Bespoke’s analysts in a note on Wednesday, “we’ve seen an increase in concentration at the extremes with nothing to show for it."

The disparity in performance is pronounced in the tech sector, where more than 40% of stocks are either up or down more than 20% this year. Seventeen stocks are sharply higher, including AI “pick and shovel” plays like memory device makers Sandisk (SNDK) and Western Digital (WDC), up 150% and 70%, respectively.

On the flip side are the dozen (mostly software) stocks that have been battered by concerns about AI disruption. They include Intuit (INTU) and ServiceNow (NOW), down a respective 40% and 30%.

Extreme moves are causing the capitalization-weighted S&P 500 to trail the equal-weight index by about 5.5 percentage points, the cap-weighted index’s worst relative performance since 1992, according to Bespoke. 

The New York Knicks' parent company is considering a spinoff of the team and the Rangers, their hockey counterparts, too

Ishika Samant / Getty Images

Key Takeaways

• There aren't many ways to directly own a share of your favorite pro sports team. The organization that owns the Knicks and Rangers may change that for New York fans.
• Shares of that company, Madison Square Garden Sports, have been hot lately, adding some three-quarters of their value over the past five years.

If you've always wanted to own a piece of a pro basketball team, this deal might be a slam dunk. (If you prefer ice hockey, insert your favorite metaphor here.)

Madison Square Garden Sports (MSGS), which owns the NBA's New York Knicks and NHL's New York Rangers, said its board would explore a spinoff that would create publicly traded companies for each team. (The stadium itself is owned by Madison Square Garden Entertainment (MSGE), which was created by the 2020 separation of the teams from the facility.)

"We believe this proposed transaction would provide each company with enhanced strategic flexibility, its own defined business focus, and clear characteristics for investors," MSGS CEO Jim Dolan said.

Why This Matters to Investors

There aren't many opportunities for investors to straightforwardly buy shares of their favorite sports team—though there are a few. The deal proposed today would do just that, at least for fans of Manhattan's home teams.

The company's statement said no timetable had been set for a deal, and that it was not certain one would happen. League approval would be required, the company said.

The deal would offer investors an opportunity to do something comparatively rare: put their money where their rooting mouths are.

Most sports teams are privately owned, and none of the organizations in the top U.S. leagues—the NBA and NHL, but also the NFL, Major League Baseball and MLS—are traded as single stocks. Some teams are owned by larger conglomerates; the Green Bay Packers do offer public ownership, though through a somewhat unconventional arrangement.

The Knicks are faring better than the Rangers so far in their respective seasons, but Madison Square Garden Sports stock is hot. The shares are up substantially today on the news, bringing their rise to roughly 30% this year—and they've added almost three-quarters of their value over the past five years.

In 2025, the Knicks were ranked among the top 10 most valuable sports franchises worldwide at some $9.5 billion, according to Forbes.

Citi analysts on Wednesday said they value the stock at $337, about 15% above yesterday's close; the Knicks, they said, accounted for $226 of that. "We like the proposed spin-off and see it as a viable step to potentially unlock value," they wrote.

Chipmaker Nvidia's moves to exit some of its bets on other AI-focused firms weighed on a few of the stocks Wednesday

Ying Tang / NurPhoto / Getty Images

Key Takeaways

• Shares of Applied Digital, Recursion Pharmaceuticals and WeRide lost ground Wednesday after a regulatory filing revealed Nvidia sold its stakes in those companies in the fourth quarter.
• The AI chipmaker added new stakes in Intel, Nokia, and Synopsys.

Nvidia is backing out of some of its bets.

Shares of three AI-focused firms fell Wednesday following the news that Nvidia (NVDA) sold its stakes in the companies in the fourth quarter. Data center service provider Applied Digital (APLD) dropped nearly 10%, while drug developer Recursion Pharmaceuticals (RXRX) plunged 14% and driverless tech company WeRide (WRD) slipped close to 4%, before paring their losses later in the session.

A regulatory filing revealed Nvidia's sales of the companies' shares but didn't specify the company's reasoning. Nvidia declined to comment on the changes to its portfolio.

Why This Matters for Investors

Nvidia's moves to exit these stakes could undermine confidence in the shares of companies that have gotten a boost from the chipmaker's support in the past.

Nvidia's stock climbed about 2%, bringing it back into positive territory for 2026 after a rough start to the year marked by lingering worries about an AI bubble. Read Investopedia's full daily markets roundup here.

Nvidia's latest 13F filing also revealed it dropped its shares of Arm (ARM), the chip designer and long-term partner it tried to acquire in 2020. Shares of Arm were up about 2% recently, building on gains earlier this month after the company posted better-than-expected earnings.

Nvidia added positions in struggling rival Intel (INTC), chip design software maker Synopsys (SNPS), and Finnish telecom Nokia (NOK). Synopsys shares climbed about 6% in recent trading, while Nokia shares added 2%. Intel shares were little changed.

While the investment in Intel shouldn't come as a surprise, after Nvidia's September announcement of a multibillion-dollar investment and partnership, rumors have continued to swirl lately about deepening ties and a possible foundry deal in the works.

Nvidia kept its holdings in AI cloud infrastructure providers CoreWeave (CRWV) and Nebius Group (NBIS) unchanged. CoreWeave and Nebius shares climbed close to 5%.

With Wednesday's slide, Palo Alto Networks shares have lost about 16% of their value since the start of the year.

Jonathan Raa / NurPhoto / Getty Images

Key Takeaways

• Palo Alto Networks shares slumped Wednesday after the cybersecurity software firm lowered its profit forecast for the fiscal year.
• The company's recent acquisitions dragged on its profit outlook.

Palo Alto Networks' string of recent deals is hurting its profit outlook, weighing on its stock.

Shares of Palo Alto Networks (PANW) were down 6% to about $153 in recent trading after the cybersecurity provider's full-year outlook disappointed. It was the worst-performing stock in the S&P 500 and Dow on a day when broader markets gained.

Palo Alto Networks said late Tuesday that it now expects adjusted earnings per share of $3.65 to $3.70 for the full fiscal year, down from its previous range of $3.80 to $3.90. The company is grappling with higher integration costs tied to its recent acquisitions, including its $25 billion purchase of CyberArk.

Why This Matters to Investors

Wednesday's move lower suggests that Palo Alto Networks' lower profit outlook dealt a blow to confidence in the company's stock, extending its recent slump amid a broad rout for software stocks.

Morgan Stanley analysts trimmed their price target for Palo Alto Networks stock to $223 from $245 following the results. However, they maintained an "overweight" rating and called its post-earnings drop "overdone," citing the company's "compelling argument for AI as a tailwind."

Meanwhile, analysts at Wedbush stood by their "outperform rating" and $225 target Wednesday, calling Palo Alto Networks "one of our favorite cyber names to own in 2026." Though ratings are still in flux, most analysts tracked by Visible Alpha have stood by their bullish ratings for the stock.

Palo Alto Networks reported adjusted earnings per shares of $1.03 on a 15% year-over-year jump in revenue to $2.59 billion for its fiscal second quarter. Both figures came in above analysts' estimates compiled by Visible Alpha.

With Wednesday's slide, Palo Alto Networks shares have lost about 16% of their value since the start of the year.

Economists expect the U.S. to post a healthy reading for fourth quarter's gross domestic product.

Joe Raedle / Getty Images

Key Takeaways

• The GDP likely grew at an annual rate of 2.5% in the fourth quarter, a slowdown from 4.4% growth in the third quarter, according to forecasts.
  
• The nation's economic output fell due to the record-long government shutdown last fall.
  
• The projected growth rate is a middle-of-the-road figure that suggests the economy will continue to expand at a healthy clip.
  

The economy is likely increasing at a healthy clip, avoiding both a tariff-driven slump and an AI-fueled boom.

The Bureau of Economic Analysis is expected to report Friday that the inflation-adjusted gross domestic product grew at an annualized rate of 2.5% in the fourth quarter, down from 4.4% in the third quarter, according to a survey of economists by Dow Jones Newswires and The Wall Street Journal.

A report in line with expectations would show that the economy continued to expand thanks to the massive investments in data centers that are fueling the AI arms race. The AI bump could help offset the effects of the record-long government shutdown, but it likely won't be large enough to signal a major economic boost.

What This Means For The Economy

GDP growth in line with expectations would indicate the economy is staying resilient despite the uncertainty during the last year.

"Mathematically, if output grows faster than employment, productivity is rising, possibly because of AI. However, we doubt real GDP will continue growing at 3.0%+ and expect slower growth for Q1," Brian Wesbury, chief economist at First Trust, wrote in a commentary. "It’s much too early to declare the start of a new technology-driven boom."

GDP is also likely to fall far short of the 15% growth rate President Donald Trump predicted in a recent interview.

Still, another quarter of solid growth would represent a rebound from the first quarter, when the economy shrank on paper because companies ramped up imports in advance of Trump's tariff campaign. (Imports count against the GDP in the BEA's calculations.)

And it would mean 2025 closed out with an average growth rate rather than the downturn that many experts feared last year when Trump announced his plans to impose tariffs on nearly every U.S. trading partner. Tariffs have still had a significant economic impact, but a pullback from their initial announced levels, along with numerous exemptions, has reduced it.

"For the full year, estimated growth of 2.2% would mark a step back from 2024’s 2.8% rate, but it’s still a far better outcome than feared at the height of the trade war," Sal Guatieri, senior economist at BMO Capital Markets, wrote in a commentary.

Friday's figures will be an advance estimate that the bureau will revise twice as new data comes in, and will finalize in April.

Carvana shares are down nearly 15% since the start of the year

Kevin Carter / Getty Images

Key Takeaways

• Carvana is slated to report fourth-quarter earnings after the closing bell today, with traders expecting a big move in the used car dealer's stock following the results.
• Analysts are widely bullish on the used car seller's stock, despite its recent slide in the wake of a short-seller report critical of the company's finances.

Carvana is set to report earnings after the market closes today, with traders expecting a big move in the online used car dealer's stock following the results.

Based on recent options pricing, traders expect Carvana's (CVNA) stock could swing up to 13.5% in either direction by the end of the week. A move of that magnitude from Tuesday's close near $351 would lift Carvana shares to about $398. The low end of the range would see the stock slip below $304, its lowest point since last November.

Carvana has had a difficult start to 2026, as a short-seller report released last month sent the stock tumbling from its record highs. Carvana stock had rallied to end 2025 as it joined the S&P 500 and analysts laid out bullish visions for the company.

Why This Matters to Investors

Carvana has become one of the leading used-car marketplaces in the U.S., sending its stock to record highs in January. However, its stock has taken a hit recently in the wake of a critical short-seller report.

JPMorgan analysts said the basis of the short-seller report appeared to include an incorrect reading of some of Carvana's finances by the authors, leading to a "significant misrepresentation of facts." The analysts recently lifted their price target for Carvana to $510 from $490, and said they expect the company to report strong sales growth for the fourth quarter that could carry through to the first quarter of 2026.

Carvana is projected to report a 48% year-over-year jump in revenue to $5.25 billion, while earnings per share are seen rising to $1.01 from 56 cents the same time a year ago.

Analysts have stayed bullish on Carvana stock despite the recent slump, with 12 of the 13 analysts with current ratings tracked by Visible Alpha calling the company a "buy," with just one "hold" rating. Their mean target of $500 would suggest 40% upside from Tuesday's close.

The shares, which were up about 4% in recent trading ahead of the company's earnings report, have lost about 15% since the start of the year.

News of the day for Feb. 18, 2026

Major stock indexes inched higher on Tuesday after posting their biggest weekly losses of 2026 last week.

Angela Weiss / AFP / Getty Images

Stock futures are pointing to a higher open Wednesday after the major indexes posted slight gains to kick off the holiday-shortened trading week; Berkshire Hathaway slashed its stake in Amazon and also sold shares in Apple and Bank of America during Warren Buffett's last quarter as CEO; shares of Palo Alto Networks are losing ground after the cybersecurity firm issued a disappointing profit outlook; shares of chipmaker Analog Devices and chip design software provider Cadence were surging after their earnings reports; and Applied Digital stock is tumbling following news that Nvidia sold its stake in the company in the fourth quarter. Here's what you need to know today.

Stocks Point Higher After Tuesday's Slight Gains

Stock futures are gaining ground this morning as investors digest a steady flow of earnings reports and disclosures from major investors. (see below). Futures tied to the Dow Jones Industrial Average and S&P 500 were recently up 0.2% and 0.4%, respectively, while those linked to the tech-heavy Nasdaq added 0.5%. Each of the major indexes posted modest gains yesterday following the break on Monday for Presidents' Day. Stocks were coming off their biggest weekly losses of 2026. Gold futures were up 0.7% at $4,945 an ounce in recent trading, while WTI futures, the U.S. crude oil benchmark, jumped 2.7% to $64 per barrel. Bitcoin was little changed at around $68,000 as the cryptocurrency's recent volatility looks to have settled, with prices ranging between $65,000 and $70,000 for the last week or so. The yield on the 10-year Treasury note, which affects interest rates on all sorts of loans, was at 4.07%, up from 4.05% at yesterday's close.

Berkshire Dumped Amazon Stock in Buffett's Last Quarter as CEO

Berkshire Hathaway's quarterly 13F report was released after the closing bell yesterday, revealing the changes in the company's investment portfolio in Warren Buffett's final quarter as CEO. The firm sold about 10.3 million shares, or 4%, of its longtime stake in Apple (AAPL), which it has been trimming often in recent years, along with 7.7 million shares, which amounts to 75% of its stake in Amazon (AMZN). Berkshire also again sold some of its stake in Bank of America (BAC), while initiating a stake in the New York Times Company (NYT) of just over 5 million shares, worth about $350 million.

Palo Alto Networks Stock Slides on Weak Forecast

Palo Alto Networks (PANW) shares are sinking this morning after the cybersecurity software provider's profit outlook disappointed. The company's fiscal second quarter revenue of $2.59 billion and adjusted earnings per share of $1.03 each came in just above what analysts had forecast. While the company lifted its outlook for its revenue and contract backlog for the full year, it also lowered its profit forecast. The outlook is affected by the impacts of integrating two recent acquisitions, which will boost sales but also increase costs. Shares of Palo Alto Networks were down more than 7% recently at their lowest level since last April, extending a recent slide as software stocks have had a rough start to the year.

A Pair of Chip Stocks Surge After Earnings Reports

Shares of chip design software firm Cadence Design Systems (CDNS) and chipmaker Analog Devices (ADI) surged Wednesday after the companies beat estimates in their latest quarterly earnings. Cadence reported revenue of $1.44 billion and adjusted EPS of $1.99, each up year-over-year and above what analysts had forecast. Cadence's outlook for 2026 also came in largely above expectations. Analog Devices also beat estimates with revenue of $3.16 billion and adjusted earnings of $2.46 per share. Shares of each company were up about 6% in recent premarket trading.

Applied Digital, Recursion Sink as Nvidia Discloses Sale of Stakes

Another 13F report released yesterday was from Nvidia (NVDA), the AI chip giant whose investments in other AI companies have boosted a number of stocks in recent years. In its latest filing, Nvidia disclosed that in the fourth quarter of 2025 it sold its stakes in Applied Digital (APLD), Arm Holdings (ARM), Recursion Pharmaceuticals (RXRX) and WeRide (WRD). Shares of Applied Digital, Recursion, and WeRide each fell Wednesday morning. Nvidia kept its stakes in CoreWeave (CRWV) and the Nebius Group (NBIS) unchanged, while opening stakes in Nokia (NOK) and Synopsys (SNPS) worth about $1.08 billion and $2.26 billion, respectively, in the quarter.

Walmart shares have gained about 16% since the start of the year

Brandon Bell / Getty Images

Key Takeaways

• Walmart is slated to post fourth-quarter results Thursday morning, following a recent record run for the retailer's stock.
• Options pricing suggests traders expect the stock could reach new record highs following the report, with analysts expecting revenue and e-commerce sales growth.

Walmart is set to report fourth-quarter earnings before the opening bell Thursday, with traders anticipating the retail giant's stock could climb to new highs following the results.

Options pricing suggests traders expect Walmart (WMT) stock could swing up to 5% in either direction by the end of the holiday-shortened trading week. A move of that size from Tuesday's close near $129 would push the stock above $135 at the high end, topping Friday's record, or drag the stock back down to $122.

Walmart shares have rallied close to 16% since the year began, as investors rotatated out of tech stocks and into consumer staples amid worries about an AI bubble.

Why This Matters to Investors

Results from Walmart, America's largest retailer, may be seen as a bellwether for the health of the American consumer. In recent quarters, its results have underscored how many Americans across income levels are increasingly searching for value.

Ahead of the report, Morgan Stanley and UBS analysts wrote that they expect a solid fourth quarter from Walmart, but warned the retailer could give conservative guidance, in part to avoid setting too high a bar for new CEO John Furner, who took over at the start of the month.

Walmart is projected to report adjusted earnings per share of 73 cents on a 5% year-over-year jump in revenue to $190.62 billion for the fourth quarter. Comparable store sales growth is expected to come in at 4.3%.

Wall Street analysts are widely bullish on Walmart's stock. Fourteen of the 15 analysts tracked by Visible Alpha consider it a "buy," compared to just one neutral rating. However, their mean target of $130 would suggest less than 1% upside from Tuesday's close after the stock's recent gains.

Palantir was founded in Palo Alto, California, and moved its headquarters to Denver in 2020.

INA FASSBENDER / AFP / Getty Images

Key Takeaways

• Palantir said Tuesday it's moving its headquarters to Miami, Florida from Denver, Colorado.
• It's the latest tech firm to move or grow its footprint in Florida.

An artificial intelligence darling just became the latest tech firm to announce a move to Florida.

Data analytics software provider Palantir (PLTR) said Tuesday that it plans to move its headquarters to Miami from Denver, Colo., a win for the "Sunshine State." The company, founded in Palo Alto, Calif., moved its headquarters to Denver in 2020.

Why This Is Significant

A number of firms have relocated or expanded their presence in Florida in recent years. Compared to many other states in the U.S., Florida offers relatively low taxes and warm weather, among other draws.

Palantir, which didn't provide details about the move in a post on social media or a statement published on its website, didn't respond to Investopedia's request for comment in time for publication.

The company said in its annual report that it had 4,400 employees at the end of last year, nearly 30% of which were based in the U.S.

Companies have in recent years moved to Florida for reasons including its regulatory and tax environment, and it's not the only firm that's announced a move to or expanded its presence in Florida lately. Last month, quantum computing company D-Wave Quantum (QBTS) said it would move to Boca Raton, Fla., from Palo Alto.

Big tech giants Apple (AAPL), Amazon (AMZN), and Microsoft (MSFT) have all opened or expanded offices in Miami in recent years.

Shares of Palantir (PLTR) rose about 1% Tuesday. They've lost about a quarter of their value in 2026 so far amid a broader rout in software stocks.