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Rivian shares have climbed close to 40% in 2025, outpacing the S&P 500's 16% gain.

Key Takeaways

• Rivian stock jumped Friday, a day after the electric vehicle maker made a number of self-driving and AI-related announcements.
• The move higher came even as worries about an AI bubble weighed on other stocks exposed to the technology.

Are investors ready to buy into Rivian's vision for its autonomous vehicles and AI?

Shares of the electric vehicle maker surged 12% Friday, erasing yesterday's losses after an "Autonomy & AI Day" event where Rivian (RIVN) announced a custom AI chip and plans to roll out enhanced self-driving software. The move higher came during a down day for broader markets as worries about an AI bubble continued to pressure shares of big AI names such as Broadcom (AVGO) and Micron Technology (MU).

Rivian said Thursday it will soon issue an update to its second-generation R1 vehicles that will expand the ability for hands-off driving to more than 3.5 million miles of roads in the U.S. and Canada, compared to under 150,000 miles previously. That would bring Rivian closer to Tesla's (TSLA) base Autopilot system in covering most roads in the U.S., Barclays analysts said in a note following the event.

The analysts said the development, along with other updates, showcased Rivian's shift in strategy to focus more on autonomous and AI features as a way to differentiate its offerings in the face of a challenging EV market, and open up new high-margin revenue streams through subscriptions and licensing.

Rivian Prepares To Roll Out Autonomy+ Subscription Next Year

Rivian said it plans to launch a subscription platform called Autonomy+ early next year that will deliver more advanced driving assistance features and be continuously updated as Rivian develops the software, much like Tesla's Full Self Driving (Supervised) service. Rivian expects to offer its subscription at $49.99 per month, or a one-time $2,500 purchase. Tesla's more advanced system costs $99 per month.

Rivian also unveiled its own AI chip designed to replace the chips it currently buys from Nvidia (NVDA) to power its self-driving software. The Rivian chip and a LiDAR, or Light Detection and Ranging, sensor system are each expected to be approved and added to Rivian's new R2 vehicles by late next year. The company is looking to add an AI voice assistant to first and second-generation R1 vehicles early next year.

Why This Matters for Investors

While Rivian shares slipped Thursday after its new autonomy projects were announced, amid a broader pullback in tech and AI stocks, Friday's gains and positive comments from analysts could point to renewed enthusiasm for the electric vehicle maker's stock.

Barclays analysts told clients that while there are a number technical hurdles for Rivian to clear as it looks to catch up with Tesla and other self-driving competitors, they "appreciate this strategy, reflecting the strength of RIVN’s efforts in vertical integration, and reminding us that aside from Tesla, they are taking clear efforts to lead on software-defined vehicles in the west."

While Rivian did not explicitly include plans for a fleet of robotaxis in Thursday's presentation, CEO RJ Scaringe hinted that the company's efforts in self-driving could also enable Rivian to pursue rideshare opportunities in the future.

Offering a robotaxi service or providing its vehicles to ridesharing services once they are capable of self-driving would put Rivian in closer competition with Tesla, which launched a test pilot of its robotaxi service in Austin, Texas earlier this year.

While still well off their highs in 2021, Rivian shares have climbed close to 40% in 2025, outpacing the S&P 500's 16% gain.

This article has been updated since it was first published to reflect more recent price values.

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Lululemon has launched a search for its next CEO.

Key Takeaways

• Lululemon announced CEO Calvin McDonald is departing at the same time as its search for his replacement.
• The process irked Lululemon's founder Chip Wilson—who, along with analysts, expressed optimism about bringing on fresh leadership.

Lululemon's once high-flying stock has plummeted this year. Now a new CEO will be brought in to help coach the athleisure brand through its recovery.

Lululemon Athletica (LULU) said Thursday that Calvin McDonald’s roughly eight-year tenure will conclude at the end of January. The transition process is unfolding in a somewhat dramatic manner, with the company announcing a search rather than immediately naming a permanent replacement, and founder Dennis “Chip” Wilson publicly grousing about what he sees as insufficient planning.

 "As one of the largest active shareholders of Lululemon, I am deeply concerned about what appears to be a tremendous failure by the Board to competently plan for the future and manage an effective succession process,” Wilson said in a Friday statement.

Wilson, who was listed as owning more than 8% of the company's stock in an August regulatory filing, said the company's "premium brand value" has eroded and the board "does not understand its target customers anymore or what will drive shareholder value.” Lululemon didn’t respond to Investopedia’s questions in time for publication. 

Why This News Matters

A number of retailers, from Walmart to Target to Nike, were ready to name a successor when their CEO announced a retirement date. The lack of a successor may make some investors think Lululemon's path forward is less certain.

Wilson has been a critic of the company before, in early 2024 telling Forbes that the company was "trying to become like the Gap, everything to everybody,” and suggesting that "You’ve got to be clear that you don’t want certain customers coming in.” A new CEO could end Wilson's vocal complaints about the company's direction, which were "becoming a growing distraction," William Blair said.

"Management has indicated it is looking for someone with growth and restructuring experience, who likely benefits in taking over following some initial improvement," the analysts said in a research note Friday.

Lululemon hopes to improve its U.S. performance, where revenue fell 3% year-over-year last quarter, by ramping up new merchandise. The company wants fresh styles to account for 35% of merchandise in spring, and a quicker design process to fuel innovation, CFO Meghan Frank said on a conference call Thursday.

“We've let product life cycles run too long within some of our key franchises,” Frank said, according to a transcript made available by AlphaSense, recalling comments the company made earlier this year about a need for "newness" on its shelves.

Frank and Chief Commercial Officer André Maestrini will serve as interim co-CEOs throughout the search process, and Wilson will advise the company through the end of March, Lululemon said.

Lululemon’s stock began climbing after the company announced McDonald’s departure and released better-than-expected results Thursday evening. Shares were recently up 10%, but remain nearly 50% below where they were a year ago.

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Costco shares have lost ground in 2025, a stark contrast to the performance of shares of rival Walmart.

Key Takeaways

• Costco reported quarterly results that topped analysts' expectations on the top and bottom lines, as its e-commerce sales took off.
• The biggest U.S. warehouse club retailer also saw a big jump in revenue from membership fees.
• Costco shares lost ground on Friday, pushing the stock further into negative territory for the year.
  

Costco Wholesale Corporation (COST) posted better-than-expected results as its e-commerce business boomed and revenue from membership fees increased.

The biggest U.S. warehouse club retailer late Thursday reported first-quarter fiscal 2026 earnings of $4.50 per share, 19 cents more than what analysts surveyed by Visible Alpha were looking for. Revenue rose 8.3% from a year ago to $67.3 billion, with membership fee revenue growing 14.0% to $1.33 billion. Both were better than forecasts. 

Investors appear to have wanted more, as Costco shares were down nearly 2% in afternoon trading. The stock has now lost about 5% of its value in 2025, significantly lagging the performance of the benchmark S&P 500 index and the gains posted by rival Walmart (WMT).

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Walmart shares have gained nearly 30% this year, while the S&P 500 has risen 16%.

What Costco calls "digitally enabled comparable store sales" jumped 20.5% in the latest quarter, while overall comparable store sales were up 6.4%.

The company continues to be pleased with the momentum in digital engagement with customers, CFO Gary Millerchimp said on the earnings call. “Our expectation would be that digital sales as we define it would continue to grow at a faster pace over the longer term than our average sales overall." Those comments came from a transcript provided by AlphaSense.

Costco didn’t provide a full-year outlook. 

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Chip designer Broadcom reported better-than-expected results on Thursday amid booming demand for AI chips.

Key Takeaways

• Shares of chip designer Broadcom tumbled on Friday as Wall Street focused in on margin pressure from its fast-growing AI business.
• Investors have scrutinized tech earnings more intensively in recent months amid concerns Silicon Valley is overspending on AI.

Broadcom’s custom AI chip business is growing rapidly. Wall Street, however, is wary about how much upside that growth suggests.

Broadcom (AVGO) on Thursday predicted its AI-related revenue will double year-over-year to $8.2 billion in the current quarter. That would be an acceleration from the most recent quarter, when it grew 74% to $6.5 billion. But the forecast came with a caveat—and that weighed on the shares today. The stock was recently down about 10% in intraday trading.

Broadcom expects its gross margin to contract 100 basis points, or 1 percentage point, quarter-over-quarter, “primarily reflecting a higher mix of AI revenue,” said chief financial officer Kirsten Spears on a call with analysts Thursday night. 

Key Takeaways

Optimism about artificial intelligence has propelled tech stocks and the broader market to record highs this year. But mounting concerns about an AI bubble have made investors more cautious in recent months, pressuring shares of AI darlings in the process.

The notion that higher AI sales might be a drag on profitability wasn't what investors wanted to hear. But investors have lately upped their scrutiny of tech earnings due to concerns about stretched stock valuations and unsustainable infrastructure spending, meaning that even good news is getting put under a microscope.

That's led to less-than-rollicking market responses to corporate results. Nvidia (NVDA), the leading supplier of AI chips and Broadcom’s largest competitor, blew past estimates with its numbers last month, but its stock slumped under the weight of AI bubble concerns. Software giant Oracle (ORCL) on Wednesday said its backlog now exceeds $500 billion, but it failed to convince investors that its huge AI investments will pay off soon. Its stock slumped yesterday to lead an AI sell-off.  

Broadcom, meanwhile, isn't the only tech company whose profitability is being pressured by AI. In October, Oracle forecast its AI cloud infrastructure business would achieve gross margins between 30% and 40%, roughly half that of its legacy software business. 

This year’s AI-driven rally has also set a high bar for tech earnings. Heading into Thursday’s results, Broadcom shares were up 75% since the start of the year. The stock rose about 20% in the past month alone thanks to Google’s newest AI model, which was trained on Broadcom-designed chips and lauded as a serious challenger to OpenAI’s ChatGPT. 

Bank of America analysts in a note Friday called Wall Street’s worries about profitability a “fair concern.” They lowered their 2026 and 2027 margin estimates by a couple percentage points. Nevertheless, they raised their earnings estimates for those same years, reflecting their belief that faster revenue growth will more than offset narrowing margins. Deutsche Bank analysts made the same adjustments, and raised their share price target.

Nastasic / Getty Images President Donald Trump is expected to reclassify marijuana as a less dangerous drug

Key Takeaways

• President Donald Trump could reportedly issue an executive order to reclassify marijuana as a less dangerous substance as soon as Monday.
  
• The news sent shares of companies in the marijuana industry skyrocketing Friday.

Cannabis stocks surged Friday following reports President Donald Trump could soon reclassify marijuana as a less dangerous substance.

Tilray Brands (TLRY) was up close to 30% in recent trading, while Canopy Growth (CGC) shares jumped nearly 40%. (Read our daily markets coverage here.) 

President Trump could be set to issue an executive order changing the classification of marijuana from a Schedule I drug such as heroin to a less dangerous Schedule III drug as soon as Monday, CNBC reported, citing sources familiar with the matter. Other Schedule III drugs include medicines such as steroids and codeine.

Axios reported the reclassification could take place next year.

A White House spokesperson told Investopedia no final decisions have been made.

Why This Is Important

Making marijuana a Schedule III drug would reduce financial and regulatory pressures on producers, and could expand financial access for cannabis companies.

Marijuana remains illegal under federal law despite being legalized on the state level in most U.S. states and territories for medicinal or recreational use. Its classification as a Schedule I drug, which ties back to the Controlled Substances Act of 1970, restricts research on it as a medicine and comes with more stringent penalties for illegal activities related to it. Heroin, cocaine, and LSD are also in this category.

A lower classification would be a boon to the cannabis industry, as it would lower taxes and lift banking rules that have restricted use of credit cards and other financial activities. 

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Young adults are feeling less secure financially, keeping them at home longer than previous cohorts.

Key Takeaways

• A growing share of young adults are staying in their parents’ homes, which could be due to financial reasons.
• As more young adults live at home, this trend could weigh on consumer spending as those who live at home may spend less compared to those who don't.

In the past, life for a young adult might have followed a familiar trajectory to that of one's parents: go to college (or don't), move out, get a job, marry, and purchase a home.

However, some young Americans haven't moved out of mom and dad's house just yet.

In 2005, 11% of 25 to 34 year olds reported living with parents, but by 2023, 16% were, according to Census research.

So what's keeping more young adults at home?

Researchers speculate that this cohort could be opting to live at home for financial reasons.

Why This Matters

Young adults who don't strike out on their own simply don't spend as much as their counterparts who do fly the nest. Research indicates that has a real impact on the larger economy.

The cost of both renting and homeownership have increased dramatically over the past few years, and younger generations are more likely to have student loan debt than older ones.

This issue could worsen in the near future, too, as some recent college graduates have struggled to find jobs. For college graduates aged 22 to 27, the unemployment rate is 4.8% compared to 4% for all workers, according to data from the Federal Reserve Bank of New York.

And more young people living at home could have negative downstream effects for the economy more broadly.

When young adults live at home, they may spend less compared with to their peers who moved out. Since consumer spending is a large share of GDP, an increasing proportion of young adults living at home could be a drag on GDP growth.

"The rising share of young adults living at home may, therefore, have depressed overall consumer spending by $12 to $13 billion, or about 0.1% of total consumption," states a report from Oxford Economics. "A worse perception of labor market conditions, which for young adults are the key determinants of financial well-being, is making them more pessimistic and may make them more cautious when it comes to spending."

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Broadcom shares led decliners on the S&P 500 Friday

Key Takeaways

• Broadcom shares sank Friday despite quarterly earnings that topped analysts' estimates on strong AI demand.
• Other AI hardware stocks sank along with Broadcom, extending losses Thursday amid worries about an AI bubble.

Broadcom (AVGO) led AI hardware stocks lower Friday, extending Thursday's tech rout despite a stronger-than-expected earnings report from the chipmaker. 

Shares of Broadcom were down nearly 9% in recent trading, leading decliners on the S&P 500 and Nasdaq. AI investor favorites Advanced Micro Devices (AMD), Micron Technology (MU), and Palantir (PLTR) also lost ground, as worries about an AI bubble continued to weigh on exposed stocks in the tech sector.

Broadcom late Thursday reported adjusted earnings per share of $1.95 on a record $18.02 billion in revenue for its fiscal fourth quarter as demand for its AI chips surged. Both figures topped analysts' estimates, but they weren't enough to sway growing investor skepticism around the AI trade.

Why This Matters to Investors

The AI boom has driven much of the stock market's growth in the last few years, but many AI stocks have taken a hit lately amid worries about a brewing bubble. Broadcom's drop Friday—even after a strong earnings print—could be taken as a signal of flagging support for the sector.

For some AI bulls, Friday's pullback could look like an opportunity to buy the dip, however.

William Blair analysts told clients following Broadcom's report that they "continue to see a favorable risk/reward equation for the stock on the back of sustained AI demand," and called Broadcom as a "leading alternative" to AI chip leader Nvidia (NVDA).

While analysts' ratings are still in flux, most on Wall Street remain bullish about Broadcom. All of the 12 analysts with current ratings tracked by Visible Alpha have said they consider it a "buy" with room to rise. Even with Friday's losses, the stock is up close to 60% for 2025.

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Gen Z is graduating into a weak job market, and the effects of that may stay with them for decades.

Key Takeaways

• Recent grads are facing a more challenging job market than the broader workforce, which could hint at tougher conditions ahead for this cohort.
• Historically, entering the job market during a downturn can lead to a significant decline in earnings, as well as poorer health and mortality outcomes for years afterwards.

Young people are struggling to find jobs, and that could have negative consequences for them long after they land a new role.

According to data from the Federal Reserve Bank of New York, the unemployment rate for recent college graduates was 4.8% as of June 2025. In contrast, the unemployment rate for all workers was 4.0%.

On his Substack, Paul Krugman, economist and Nobel Laureate, pointed out that a higher unemployment rate for recent college grads is atypical and could be a indicator of worse times ahead for this cohort.

What This Means For You

As companies slow hiring due to uncertainty, new grads may are having a hard time finding a job. In order to be more competitive on the labor market, experts suggest staying flexible in the job search and not being too narrowly focused on a particular role or industry.

"What we’re looking at now isn’t the worst job market college graduates have ever seen. It is, however, the worst such market compared with workers in general that we’ve ever seen, by a large margin," wrote Krugman.

While some have speculated that this trend could be due to businesses using AI to do the work of entry-level employees, experts like Chris Martin—a lead researcher for Glassdoor—have suggested that companies may be reducing hiring due to uncertainty about economic policies like tariffs.

"I think it's too soon to tell from the data whether AI is driving this downturn for new grads in particular. I'm not convinced that it is..." said Martin in an August interview with Investopedia.

And although the economy isn't in a recession right now, previous studies have shown that young people who enter the labor market during a downturn, or a period of high unemployment, can experience lower earnings as well as worse marriage and health outcomes for years afterwards.

"A growing body of research has shown that entering the labor market in a recession leads to losses in earnings, wages, and employment that persist for about 10 years," wrote economists Hannes Schwandt and Till Von Wachter, in an issue of the NBER reporter, a quarterly periodical by the National Bureau of Economics Research.

For young people currently seeking a job, it's not impossible to find a one—but it may be harder and require more effort. Martin suggested people expand their job search beyond the specific role or industry they want to work in, and focus on landing a job in a field that's continuing to hire.

"Even if you're a software engineer or you want to be a financial analyst, you may not need to work for a tech company or an investment bank to get your career started in those fields," said Martin. "For example, there's been a lot of growth in jobs in health care over the past couple of years, and health care companies need software engineers and financial analysts."

News of the day for Dec. 12, 2025

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The benchmark S&P 500 index on Thursday closed at a record high for the first time since late October.

Stock futures are mixed this morning after the Dow Jones Industrial Average and the S&P 500 closed at record highs yesterday; tech stocks remain under pressure amid ongoing concerns about an AI bubble; shares of Broadcom are down sharply despite a better-than-expected earnings report from the chip giant; President Trump has signed an executive order looking to limit how states can regulate AI; and Lululemon stock is soaring after the athletic apparel company reported strong results and announced a CEO succession plan. Here's what you need to know today.

Stock Futures Mixed After Dow, S&P 500 Hit New Highs

Stock futures are pointing to a mixed open as persistent questions about the AI trade are weighing on tech stocks. Dow Jones Industrial Average futures were up 0.2% recently, after the blue-chip index soared more than 600 points to a record close on Thursday. Futures tied to the benchmark S&P 500 index, which also hit a record closing high yesterday, were down 0.1%, while futures linked to the tech-focused Nasdaq slid 0.5%. The yield on the 10-year Treasury note was at 4.18% this morning, up from 4.14% at yesterday's close, after falling as low 4.10% early Thursday following the Federal Reserve's latest rate cut. Gold futures were up 1.2% at $4,365 an ounce, not far from the record high set in mid-October. Bitcoin was holding steady around $92,000.

Broadcom Stock Tumbles Despite Solid Earnings

Shares of Broadcom (AVGO) are sinking even though the chip designer topped estimates for its fiscal fourth quarter, the latest example of the high bar that companies need to clear with investors amid concerns about the sustainability of the AI trade. The stock initially rose in extended trading Thursday after the results were released, before turning negative. Broadcom stock, which hit a record high on Wednesday, has been mostly able to avoid the selloff that hit tech stocks in recent months. Shares were down more than 6% in recent premarket trading.

Tech Stocks Extend Slump as AI Bubble Fears Persist

Shares of technology companies are broadly under pressure this morning, adding to the previous session's declines. Oracle (ORCL) stock is down about 1% ahead of the bell following Thursday's 11% drop, which came after the company reported disappointing sales and failed to address investor concerns about its concentrated customer base and plans to finance its AI data center buildout. Similar to Thursday, shares of several other AI hardware makers are moving lower, including Micron Technology (MU) and Advanced Micro Devices (AMD). Oracle shares are down about 40% from the record highs they reached in September, when Oracle revealed it had grown a massive backlog of AI-related orders.

Trump Signs Executive Order Looking to Combat 'Onerous' AI Regulations

President Trump on Thursday signed a series of executive orders, including one regarding how states should be able to regulate artificial intelligence. The order says that having varying regulations at a state-by-state level "by definition creates a patchwork of 50 different regulatory regimes that makes compliance more challenging." Thursday's order is designed to act as a temporary solution until Congress can create a federal standard of AI regulations that would take precedence over any state laws. In the order, Trump told the Attorney General to create a task force designed to litigate against states with AI regulations that are deemed excessive.

Lululemon Stock Pops on Strong Results, CEO Succession Plan

Lululemon stock is surging after the clothing retailer reported strong quarterly results, approved a $1 billion increase to its stock buyback plan, and announced a succession plan for its CEO. Revenue of $2.57 billion and earnings per share of $2.59 each came in above the analyst consensus compiled by Visible Alpha. Current CEO Calvin McDonald announced plans to step down at the end of January. Lululemon said it is working with a search firm to identify candidates, and said the company's current CFO and Chief Commercial Officer will serve as interim co-CEOs if a candidate is not selected by the time McDonald steps down. Lululemon shares, which through Thursday's have lost about half their value so far in 2025, were up 10% in premarket trading.

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Broadcom shares have added about three-quarters of their value in 2025 through Thursday's close

Key Takeaways

• Broadcom posted better-than-expected earnings on AI demand, and said it sees that momentum continuing in the current quarter. 
• The results didn't immediately revive confidence in the AI trade after Thursday's sell-off in the wake of Oracle's earnings.

The AI trade has sputtered lately. Investors looking for Broadcom's latest quarterly results to get it running again have been disappointed so far.

Shares of chipmaker Broadcom (AVGO) first jumped in extended trading Thursday, rising after it posted results that topped analysts' estimates on growing AI demand. That was welcome for bullish investors who saw the Nasdaq and many of the Dow's tech-focused components left out of today's market surge.

Not long after, however, they were in the red again, extending losses from the regular session—and suggesting that the latest tech selloff, led by database giant Oracle (ORCL) after it failed to impress investors with its own results, might not be done.

Why This Matters to Investors

Oracle's drop Thursday amid worries about its debt load and circular deals rattled confidence in the AI trade, weighing on the tech sector. Investors may have hoped that Broadcom's better-than-expected results could point to a stronger case for some AI-exposed stocks, but the short-term reaction to its numbers was hardly an endorsement.

Oracle slightly missed Street sales estimates. But Broadcom topped forecasts with a 28% year-over-year jump in quarterly revenue to a record $18.02 billion. It also posted adjusted earnings per share of $1.95 for the fiscal fourth quarter, above the $1.88 analysts surveyed by Visible Alpha were looking for.

CEO Hock Tan said the supplier for Meta (Meta) and Alphabet's (GOOGL) Google sees that momentum continuing in the current quarter, and projected first-quarter revenue of $19.1 billion, ahead of analysts' estimates.

Broadcom also said its board approved a 10% boost in its quarterly dividend to $0.65 for fiscal 2026, marking its 15th straight year of increases in its annual payout.

Shares of Broadcom have added about three-quarters of their value in 2025 as of Thursday's close.