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President Donald Trump said that he likes the idea of giving some of the savings from Elon Musk’s Department of Government Efficiency back to U.S. citizens as a kind of dividend.He said at an investment conference in Miami on Wednesday that the administration is considering a concept in which 20% of the savings produced by DOGE’s cost-cutting efforts goes to American citizens and another 20% goes to paying down the national debt.Trump also said the potential for dividend payments would incentivize people to report wasteful spending.“They’ll be reporting it themselves,” Trump said. “They participate in the process of saving us money.”Later, as he flew back to Washington aboard Air Force One, he was asked by a reporter about the plan floated by Musk.“I love it,” the Republican president told reporters on the plane.A day earlier, Musk wrote on his social media platform that he “will check with the President” in response to a suggestion that Trump and Musk should announce a “DOGE Dividend” that would send a refund to taxpayers from part of the savings created by DOGE. Its efforts have already led to thousands of federal government employees being fired or laid off. Chris Megerian, Associated Press
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E-Commerce
Birkenstock, the renowned German footwear brand, posted stronger-than-expected sales for its fiscal first quarter, fueled by strong holiday demand and the growing popularity of its closed-toe clogs. However, the companys U.S.-listed shares (NYSE: BIRK) were down about 3% in premarket trading Thursday as of the time of this writing. Strong demand meets investor skepticism The company reported quarterly revenue of 361.7 million, exceeding analyst expectations of 356.2 million. However, it maintained its annual margin forecast, as Reuters reported. The drop in share price is likely related to a cautious outlook on profit margins for fiscal 2025, with investors also concerned about the long-term impact of Birkenstock’s expansion strategyespecially the rising costs associated with new retail locations and manufacturing facilities. Expansion costs weigh on margins The footwear brand has been aggressively expanding, particularly in Asia. In October 2024, Birkenstock launched a dedicated e-commerce platform in South Korea and announced plans to open brick-and-mortar stores in the region by spring 2025. The companys gross margins fell by 330 basis points in fiscal 2024, as the Wall Street Journal reported, largely due to increased spending on new retail locations and manufacturing facilities, including a new production plant in Pasewalk, Germany. Investors may be wary of how long these expenditures will continue to pressure profits before yielding meaningful returns. Market expectations and profit misses Birkenstocks revenue forecast for fiscal 2025between 15% and 17% growthfell slightly below expectations. Analysts had anticipated a more aggressive outlook, especially given the companys recent momentum. Additionally, while sales have been strong, profits have not kept pace. Birkenstocks earnings report showed that despite higher revenues, net income was lower than analysts had projected. This discrepancy suggests that rising operational costs, supply-chain expenses, and promotional spending may be eating into profitability. Brand strength vs. market concerns Birkenstock remains a strong brand with cultural relevance, thanks in part to high-profile collaborations and celebrity endorsements. However, the stocks decline reflects broader market concerns about whether the company can translate its current sales momentum into sustained long-term profitability. This isn’t the first time investors have reacted negatively to Birkenstock’s financial performance. In August 2024, the companys stock plummeted 15% after missing profit estimates. While the latest dip isn’t as severe, it signals continued skepticism about the company’s ability to balance growth with profitability.
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E-Commerce
The stock prices of quantum computing companies are surging in premarket trading this morning after Microsoft unveiled a new type of quantum computing chip yesterday, the Majorana 1. Heres what you need to know about Microsofts breakthrough and its impact on the stock prices of quantum computing companies. What is Microsofts Majorana 1 chip? Things can get very complicated when discussing anything about quantum computing because the technology involves quantum physicsnever a straightforward subject to discuss. However, in brief, quantum computing is a burgeoning field of computing that uses the properties of quantum physics to carry out computations. In classical computing, classical computerswhich include your Android phone, your MacBook, and todays most powerful supercomputers that currently power AI platformsoperate using bits, each bit being a one or a zero. But Quantum computers operate using qubits. Due to the properties of quantum physics, a qubit can be a one and a zero at the same time, meaning quantum computers can carry out computations nearly infinitely faster than classical computersprovided they have enough quantum bits. Right now, most quantum computers have far fewer than 100 qubits, and experts think that a quantum computer will need to have at least a million qubits in order to easily process and solve complex problems (such as coming up with a cure for all cancers or creating self-healing materials). This current lack of qubit computing power is why many experts think practical quantum computers are still decades awayor at least they were. Yesterday, Microsoft announced that it has created a new type of quantum computing chip called the Majorana 1. The chip uses an entirely new form of matter, called a topoconductor, that makes it much easier to scale qubits. Right now, the Majorana 1 only has 8 qubits, but Microsoft says the chips topoconductor matter offers a path to fit a million qubits on a single chip. Because of the Majorana 1, Microsoft now says that quantum computers that can solve meaningful, large-scale problems could be on the market in years, not decades. Quantum computing stocks surge The fact that Microsofts breakthrough seems to suggest we are just years and not decades away from a reliable quantum computer has lit a fire under quantum computing stocks this morning. If practical quantum computers are just years away, then quantum computing companies stand to start growing revenues and making profits much sooner than expectedat least, thats the hope. And it seems that hope is causing some investors to buy into existing quantum computing shares. At the time of this writing, D-Wave Quantum Inc. (NYSE: QBTS), Quantum Computing Inc. (Nasdaq: QUBT), and Rigetti Computing, Inc. (Nasdaq: RGTI) are all up over 10% in premarket trading. IonQ, Inc. (NYSE: IONQ) is up around 4%. While those companies aren’t directly tied to the Majorana 1, it seems that their stock price jump is a case of a rising tide lifts all boats. If commercial quantum computing is closer than expected, companies operating in the space have a chance to gain sooner than once thought. But the stocks remain volatile While the four major public quantum computing companies are seeing their stock prices rise today in the hope that the quantum computing world is much nearer than once believed, its important to note that shares in quantum computing companies have been highly volatile over the past year. For example, while shares of QBTS are up 275% over the past 12 months as of yesterdays stock market close, its share price has dropped 22% since the beginning of the year. Likewise, QUBT shares are up 784% over the past 12 months, but they are down over 51% since 2025 began. RGTI shares are up 552% over the past 12 months but down 27% year-to-date. IONQ shares are up over 215% over the last year but down over 18% since this year began. And lately, it is not uncommon to see the share prices in these companies surge or fall by double-digit percentages in a single trading session. The point is, there is a lot of excitement around quantum computing, but also a lot of speculation. Investors are looking for the next Nvidiaa company that can quickly go from being worth billions to trillions of dollars. While Microsofts latest chip advancement is a huge step forward for the industry, there remains no certainty on where quantum computing goes from here, or how quickly everyday usage of quantum computers arrive.
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E-Commerce
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