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Stubbornly hot inflation will be unkind to the bottom line of Dollar Tree, warns Deutsche Bank.

Deutsche Bank analyst Krisztina Katai downgraded her rating on the dollar store to Hold from Buy on Monday, and slashed the price target to $102 from $129.

"We now see more balanced risk/reward, especially with renewed concerns around building inflationary pressures. We remain long-term believers in Dollar Tree's story including the ongoing turnaround at Family Dollar, however, we are incrementally concerned around accelerating cost pressures from both freight and wages, particularly in light of the Dollar Tree banner's fixed $1 price point which limits its ability to absorb higher costs through price increases, putting margins at risk," said Katai in a research note to clients.

Shares of Dollar Tree fell 2% to $97 in pre-market trading Monday. The stock has fallen 8% in the past six months as investors fret about the chain's profit margins amidst considerable inflation in labor and the supply chain. The business is essentially hamstrung in how it could respond to inflationary pressures given its model of selling products mostly at $1 and price sensitive shoppers.

Indications of stress on the model appeared on May 27, points out Katai. That's when Dollar Tree issued 2021 earnings guidance that was 8% shy of the mid-point of analyst estimates.

"Like most retailers, we are currently faced with higher freight costs, both international and domestic worker shortages, and uncertainty related to inflation," cautioned Dollar Tree CEO Mike Witynski on a call with analysts.

Katai now doesn't believe earnings estimates for Dollar Tree on the Street have bottomed. Further markdowns could impact the stock negatively.

"With the sequential worsening in ocean freight rates since the 1Q release we are no longer confident that negative earnings revisions are behind us," said Katai.

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Everywhere one looks inflation appears to be running hot right now as the U.S. economy powers back from the COVID-19 pandemic triggering shortages in everything from workers to raw materials.

The June Consumer Price Index (CPI) increased at its fastest pace in 13 years.

July's CPI will be released later this week. CPI excluding food and energy is expected to have risen by 4.3% in July over last year, pulling back just slightly from June's 4.5%. Core consumer prices are also estimated to have advanced for the fourteenth consecutive month, or by 0.5% after June's 0.9% monthly gain.

Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

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Inflation will pound this dollar store, and maybe its stock: Deutsche Bank - Yahoo Finance

Tyson Foods, United Airlines, CNN, the U.S. military.

A wide variety of employers, including those four, impose COVID-19 vaccine mandates on their workers, and experts said theyll have a lot more company soon after the Food and Drug Administration gives the shots its full approval.

Some employers arent ready to impose mandates but may penalize workers for not getting vaccinated, possibly by requiring them to pay an insurance surcharge costing several hundred dollars a year.

I think theyve decided that in order to get that needle to move, they need to do something more, said Wade Symons, leader of the regulatory resources group at Mercer, an employee benefits consultancy.

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Other employers just ask nicely or stick with incentives, hoping not to scare workers off amid what HR leaders call The Great Resignation a pent-up flood of people quitting after holding onto their jobs during the pandemic.

The hodgepodge of vaccination strategies coincides with the surge of the delta variant, which is more contagious than earlier versions of the coronavirus and threatens to derail efforts to return to the office.

Here are some of the issues with vaccine mandates, which experts agree are legal as long as workers are provided accommodations for legitimate medical or religious objections:

If you work in a field that requires you to interact with the public, you are among those most likely to be required to be vaccinated, said Michael C. Schmidt, vice chair of law firm Cozen O'Connors labor and employment department.

This is particularly true of health care providers such as hospitals, many of which have historically required flu vaccinations.

Ready to sell your used vehicle? You may be surprised by its value

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It may be true of other industries with workers in harms way such as meatpacking plants. Those facilities faced criticism over COVID-19 outbreaks in the early months of the pandemic because the employees typically work side by side. Tysons Food, which sells meat, ordered vaccinations for its workers.

In the travel sector, United Airlines is among the first major companies to issue a vaccine mandate to its employees. Flight attendants and gate agents are among workers who work directly with the public, putting themselves and travelers at risk.

What youre seeing is employers realizing that that resistance is softer than it might have been a few months ago as the delta variant gets more extreme, said Denise Rousseau, professor of organizational behavior and public policy at Carnegie Mellon University's Heinz College.

Yet many companies whose employees interact with the public don't require vaccination. Major retailers such as Walmart and Target havent issued mandates for store workers. Walmart requires vaccinations for employees at its headquarters in Arkansas and for some workers who travel regularly.

"We have an important role to play and believe the requirement for vaccinations for our leaders is key to driving toward an end to this pandemic," Walmart CEO Doug McMillon said in a memo to employees.

Yes. This could include a surcharge on your health insurance.

Mercers Symons said clients have asked him about how to charge unvaccinated employees more for their insurance to cover the costs of massive hospital bills.

Its something weve just started getting questions about in the last couple of weeks, Symons said. The number of questions has been surprising in the volume. This is something theyre more willing to take on. Its less than a mandate.

Symons estimated that some workers could face an additional $20 to $50 per paycheck, though he said he would expect it to be on the lower end of that scale.

That would translate into several hundred dollars annually in extra costs.

Unvaccinated folks have the potential to cost employers more from a health care cost perspective, so theyre feeling theyre justified in that additional surcharge, he said.

It would be akin to how some employers tack on a surcharge for workers who smoke cigarettes, Symons said, though he acknowledged that surcharges for the unvaccinated would probably be more controversial.

Insurance surcharges could turn out to be more effective than mandates, Carnegie Mellons Rousseau said.

People are loss-sensitive, she said. Losses are more painful than gains are good. If the incentives are experienced as a loss, theyll act to correct that loss.

Its highly likely. For now, COVID-19 vaccines remain authorized under emergency use regulations.

If the FDA grants full approval, it may lead to a flood of employers mandating shots since the agency's signoff would remove one of the arguments against requirements, experts speculated.

Emergency use status isnt enough to block mandates. A federal judge in Houston ruled against hospital employees who argued that they should not be subject to a mandate because the vaccine had been only authorized for emergency deployment.

The judge pretty handily rejected that claim, said Schmidt, the employment lawyer.

Tyson Foods team members receive COVID-19 vaccines Feb. 2 from health officials in Wilkesboro, N.C. Tyson Foods requires all of its U.S. employees to get vaccinated against COVID-19.

Some employers have been reluctant to order vaccines until the shots have the same authorization as, say, over-the-counter medicine.

Theres no question there were some employers that recognized the uneasiness of the (emergency) status and were waiting and might still be waiting for approval, Schmidt said.

Possibly. In some cases, unions support mandates, including the AFL-CIO, which represents 56 unions accounting for more than 12 million workers.

Others, such as unions representing teachers, sheriffs deputies and state workers, have spoken up against mandates.

We have a right to bargain over a new work rule," said Debbie White, president of Health Professionals and Allied Employees, New Jerseys largest health care union.

Most union contracts will prevent employers from imposing mandates without negotiating, Schmidt said.

Definitely. Employers recognize that resistance is particularly strong in some quarters. Nearly 3 in 10 American adults havent gotten at least one dose of vaccine.

Because vaccinations have become a political issue for a portion of Americans who refuse them, employers could face mass resignations if they require shots. (Other employees are hesitant because of safety concerns and other fears.)

Thats particularly concerning for bosses since many are struggling with The Great Resignation a widespread departure of workers who held onto their positions during the pandemic but are ready to leave for something else now that the economy is picking up.

Given how many employers are grappling with worker shortages, they may want to avoid upsetting their staff.

Workers could be bluffing when they threaten to quit, but employers might still fold their cards.

What people say and what people do theres always a disparity, said Theresa McEndree, global head of marketing for Blackhawk Network, which consults with employers about worker incentives.

Employers may have to accept the inevitability that some people are as good as gone.

Ive heard employers saying that if this is a reason why someone is unwilling to come to work, then maybe we just have to live with them working somewhere else, Symons said, because some employers feel like they just need to get back to functioning as close to the way they did before.

This is also possible. Research shows that many vaccinated Americans are concerned about working alongside unvaccinated colleagues.

More than 62% of American workers want at least 8 in 10 of their co-workers to be vaccinated before theyll feel comfortable returning to the office, according to Blackhawk Network research.

In many cases, the answer is probably yes. For companies that dont want to force their workers to get vaccinated, incentives may do the trick.

History and data have shown that its more positive to reward good behavior than impose a punishment, McEndree said.

Of unvaccinated workers, 51% say a financial incentive from their employer would motivate them to start and complete the vaccine process, she said, summarizing Blackhawks research.

In this case, she said, money works.

Contributing: Lindy Washburn of NorthJersey.com

You can follow USA TODAY reporter Nathan Bomey on Twitter @NathanBomey and subscribe to our free Daily Money newsletter here for personal finance tips and business news every Monday through Friday morning.

This article originally appeared on USA TODAY: Health insurance charge for not getting COVID vaccine? It could happen

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Won't get a COVID-19 vaccine? Some bosses may charge you $20 to $50 more for health insurance on every paycheck - Yahoo! Voices

Major employers and universities across the U.S. have comfortably relied on legal precedent that supports mandating a COVID-19 vaccine for workers and students. However, when New York City becomes the first government in the country to ban unvaccinated people from indoor restaurants, gyms, and entertainment venues, it opens up a new legal debate.

On Tuesday, New York City Mayor Bill de Blasio announced the plan, which will go into effect on Aug. 16. Legal experts told Yahoo Finance that the rule will test the authority of a 1905 Supreme Court case that gave states a broad yet still limited right to uphold compulsory vaccination laws.

We should all keep in mind that the courts jurisprudence is still unsettled, Jim Oleske, professor at Lewis & Clark Law School, told Yahoo Finance. I think that no matter what [New York Citys] final rule looks like...it's going to get challenged.

While the New York City rule is scheduled to go into effect on Aug. 16, enforcement will begin Sept. 13 and will be up to the city's health department rather than the city's police force.

When announcing the rule, de Blasio said, This is going to be a requirement. The only way to patronize these establishments indoors, will be, if you're vaccinated at least one dose. The same for folks in terms of work they'll need at least one dose.

Mayor Bill de Blasio says NYC will mandate the COVID-19 vaccine to enter restaurants and fitness centers. (Photo by SBN/STAR MAX/IPx)

Legal scholars and practitioners say that while there's a strong foundation for states and local governments to adopt and enforce their own vaccination policies, the foundation isnt unshakable.

The coming challenges are expected to raise some of the arguments already brought against COVID-19 mandates in lawsuits across the country, and ultimately force courts to grapple with the 1905 Supreme Court decision, Jacobson v. Massachusetts. In Jacobson, the court said that states, under their police power, could require the smallpox vaccine.

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Jacobson is an old case, and how much force it will have, I think it depends, Oleske said.

Most ripe for debate, Oleske said, is whether state and local governments need to provide exceptions to mandatory vaccination policies either to protect the constitutional right to the free exercise of religion, or to protect the constitutional right under the Due Process clause to remain free from bodily interference.

University of California Hastings College of Law professor Dorit Rubinstein Reiss said another unsettled question is whether such government mandates are legal while inoculations remain under Emergency Use Authorization. Dr. Anthony Fauci told USA Today's editorial board on Friday that there will be a "flood" of vaccine mandates at schools and businesses after the vaccines receive full FDA approval.

She also expects debate over the Americans with Disabilities Act (ADA) and whether it overrides a vaccine policy like New York City's, given that for places open to the public, like restaurants, fitness venues and entertainment spaces, it generally requires accommodations for people with disabilities.

"Those who cannot be vaccinated should not be punished for it," Reiss said. "I would be surprised if [New York City's] law did not include an exception."

While the CDC does not cite specific disabilities known to preclude people from getting a vaccine, the agency notes that some people may be allergic to ingredients in the COVID-19 vaccines. The agency also acknowledges it has limited or no vaccine safety data on individuals with certain underlying medical conditions, citing people with weakened immune systems, and more specifically, autoimmune conditions. Ultimately, the CDC says it recommends COVID-19 vaccination for "most people" with underlying medical conditions, especially those whose condition puts them at higher risk of severe infection.

Although the ADA does not name all impairments that qualify as disabilities, it does recognize HIV, specifically. The agency defines a person with a disability as "a person who has a physical or mental impairment that substantially limits one or more major life activities, a person who has a history or record of such an impairment, or a person who is perceived by others as having such an impairment."

Several COVID-19 era cases have begun to establish rules amid the pandemic's uncharted legal waters.

In April, the Supreme Court rejected Californias restriction on private gatherings because it didnt exempt religious gatherings. The case exemplifies how much deference the court has been willing to give to those who challenge the validity of a state law aimed at protecting public health, based on religious grounds. In its decision, the court pointed out that the case marked the fifth time it had rejected the Ninth Circuits analysis of Californias COVID restrictions on religious exercise.

A federal district court decision in Texas that dealt with a private employer mandate, rather than one issued by the government, could also have bearing on how courts handle complaints that vaccines have yet to receive full FDA approval. The Texas court dismissed claims of hospital employees who argued that because of the attenuated approval of vaccines, their employers' mandate forced them to either lose their jobs or unwillingly participate in a medical experiment. The case is unique in that it upheld an employer's rule despite no accommodation for workers who raised objections based on disability.

In another decision, handed down in August, the U.S. Court of Appeals for the Seventh Circuit upheld Indiana Universitys right to require student vaccinations for those on campus, reasoning that students could choose to remain unvaccinated and not attend, or another school.

Bill Gordon, a lawyer for King & Spalding who advises companies and individuals on state and local government rules, speculates that New York City may not be legally required to offer exceptions, specifically if its vaccination mandate is limited to restaurants, gyms, and entertainment venues.

Like the Indiana case (which said students could choose not to attend the University), the argument will be that it's not necessary to go to a restaurant, and it's not necessary to go to a movie theater, he explained. That being said, it's possible that they will have had some limited exceptions.

Gordon added that if the legality of New York City's mandate were to be challenged in federal court, the analysis would probably look slightly different than the one in Jacobson.

Courts would likely use the rational basis test, Gordon said, referring to a minimum standard that requires governments to show that a law or ordinance is "rationally related" to a legitimate government interest. In 1905, the court required the ordinance to be "reasonable."

Rubinstein Reiss said at a minimum, under either standard, when a government seeks to make vaccination mandatory, she expects a medical exception to be a legal must.

"In terms of medical exemptions, Jacobson implied or strongly suggested that you may be required to give a medical exemption," Reiss said, emphasizing that the case left the door open for debate because it didn't deal directly with the question.

Beyond that, Oleske and Reiss say state and local vaccine mandates are likely going to need to include exceptions for those who decline vaccination on religious grounds.

If it does not include religious exemptions, there will almost certainly be constitutional claims brought under the Free Exercise Clause, Oleske said.

On more shaky ground, he said, will be any challenges claiming a general right to bodily integrity under the constitutions Due Process clause, which has been invoked in abortion and right to die cases.

"On that front, it's going to be very hard because the precedent from the Supreme Court has decided that issue, albeit in 1905," Oleske said.

Another issue that could open the door to legal challenges is how New York City goes about enforcing and penalizing its ban. City officials have yet to explain how they intend to enforce the rule or punish those who violate it. However, already settled in Jacobson was the state's right to impose a fine. The plaintiff who declined vaccination was fined $5, today's equivalent of approximately $150.

Alexis Keenan is a legal reporter for Yahoo Finance. Follow Alexis on Twitter @alexiskweed.

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NYC's vaccine mandate will test the authority of a 1905 Supreme Court case - Yahoo Finance

With the Delta variant driving a surge in COVID-19 infections, accounting for more than 90% of new cases across the U.S., health officials warn the threat of the contagious variant is "serious" as infected patients crowd hospital beds in hard-hit regions.

I cannot emphasize enough how serious this situation is, Dr. Elizabeth Clayborne, emergency physician at UM Capital Region Medical Center, told Yahoo Finance Live, referring to the Delta variant. This is a wake-up call for everyone in the country regardless of where they live.

The daily average case count rose above 96,000 on Wednesday, about a 130% jump over the past two weeks, according to data compiled by the New York Times. And the daily average number of deaths are on the rise as well, climbing 65% in the past 14 days to 410, but still only a fraction of the total reported during the winter peak.

As it stands now, Florida and Texas account for about a third of new cases across the country. Texas recorded more than 15,000 new COVID-19 cases Wednesday, its highest one-day total in six months, according to state data. Meanwhile, the Florida Hospital Association reported more than 17,000 new COVID-19 cases in the state and 11,515 COVID-19 patients hospitalized as of Wednesday, with 86% of inpatient ICU beds in use.

But its not just Florida and Texas that are seeing a rapid rise in cases fueled by the Delta Variant. States including Louisiana, Mississippi, Alabama, Oklahoma and South Carolina have seen confirmed COVID-19 cases jump more than 100% in the past two weeks.

The Delta variant, which is driving the recent surge in cases, was first detected in India. The variant has now been identified in more than 130 countries and a recent internal Centers for Disease Control and Prevention (CDC) document warned its likely to cause more severe illness and is as contagious as chickenpox.

In prepared remarks on Tuesday, President Biden described the Delta variant as a largely preventable tragedy that will get worse before it gets better as he laid out plans to get more Americans vaccinated and stop the spread of COVID.

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Though vaccination numbers in the country are improving, only 49% of the population 12 years and older is fully vaccinated, and 58% have received one shot.

As an emergency room physician who continues to take care of patients on a daily basis who are testing positive for COVID this is a real threat, Clayborne added. Reach out to those members of your family or their friend circles who have not been vaccinated and encourage them to rethink that because it is very risky.

Seana Smith anchors Yahoo Finance Lives 3-5 p.m. ET program. Follow her on Twitter @SeanaNSmith

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Delta variant: This is a wake-up call for everyone in the country, emergency physician says - Yahoo Finance

More mobile consumers after getting a COVID-19 vaccine hasn't slowed the online car buying boom that the pandemic helped create.

At least that's a takeaway from the second quarter earnings out of online car-selling leader Carvana (CVNA).

Carvana said Thursday evening that it sold 107,815 retail units in the second quarter, up 96% from a year ago. It marked the company's first time selling over 100,000 units. The company saw a record level of gross profit per unit. Some $45 million in net income was the first-ever quarter for Carvana of positive net income.

"Five years ago, the year before we went public, we sold 18,000 cars in the full year. We just sold over five times that many in a single quarter," Carvana CEO Ernie Garcia remarked to analysts on a conference call.

Garcia added later on in the call, "I do think what characterizes this environment is you have very rapid vehicle price appreciation in both the wholesale market and the retail market. And it's unlike anything that I've at least ever seen in my career. So I think we've seen very dramatic price appreciation."

Here is how Carvana performed compared to Wall Street analyst forecasts for the second quarter:

Carvana shares rose 2% in Friday trading. The stock has been one of the best pandemic-related plays, with shares up nearly 100% over the past year. Shares of Carvana rival Vroom (VRM) have plunged 40% amid several operational miscues during the last 12 months.

Analysts generally stayed upbeat on Carvana's stock following the results, but several did point to a heightened valuation at current levels.

"While Carvana is uniquely positioned as the largest online used auto player with a significant first mover advantage and scale, risk/reward is balanced at current valuation," said Raymond James analyst Nicholas Bacchus in a research note to clients.

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Brian Sozzi is an editor-at-large and anchor at Yahoo Finance. Follow Sozzi on Twitter @BrianSozzi and on LinkedIn.

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Online car buying is booming, according to this auto dealer - Yahoo Finance

This article originally appeared on Simply Wall St News.

Sea Ltd's ( NYSE:SE ) share price is back at all time highs ahead of the company's second quarter results which are due next week. The stock price is up 650% since March 2020 and some 2,000% in the last 3 years. When a stock experiences such a big rally, there's always a risk that it has become overvalued. Its even more important to look at the valuation when a company isnt profitable, as is the case with Sea.

Sea Ltd is based in Singapore, and operates an online gaming platform, e-commerce sites, and a fintech platform. The company has experienced phenomenal growth in the last few years, with revenue growing nearly 20 fold since 2015.

See our latest analysis for Sea

When we estimate Seas fair value using analyst estimates for revenue and earnings, we come to a value of $300.71 a share. The current price of $296.95 implies a 1.2% discount which suggests the stock is trading at a reasonable valuation. Ideally, investors would like to buy growth stocks like Sea at a wider discount which would offer a 'margin of safety' and more potential upside.

NYSE:SE Fair Value Estimate August 10th 2021

As you can see from the chart below, revenue growth has actually accelerated in the last few years. Over the last five years, revenue growth has averaged 73% a year, but over the last 24 months it has accelerated to 130%. Having said that, there has been some volatility from one quarter to the next, so we shouldnt expect the trajectory to continue each and every quarter.

NYSE:SE Earnings and Revenue Growth August 10th 2021

Looking to the future, analysts are expecting top line growth of 87% this year, 47% in 2022 and 31% in 2023. Those estimates appear quite conservative compared to historical rates of growth. In the 12 months to March, Seas net income loss was $1.7 billion on revenue of $5.4 billion - so the profit margin is currently minus 32%, although the company is already generating free cash flow. The profit margin is expected to improve steadily until the company breaks even in 2023, which should be achievable if expenses rise at a slower rate than revenue.

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What this means for you:

Sea Ltd is growing rapidly, yet doesn't appear overvalued at the current price. However, this is a high beta stock which means we should expect periods of volatility, and these periods may offer an entry point with a wider discount to fair value.

Sea will be reporting second quarter results on 16 August and analysts are expecting a loss per share of 53 cents, compared to a loss a year ago of 68 cents. Revenue for the quarter is expected to be about $1.94 billion, up 50% from a year ago.

The company has historically beaten revenue estimates in most quarters and missed EPS estimates in most quarters, so it wont be surprising to see this repeated. Nevertheless, another miss on the bottom line might create some volatility and a better entry point.

The results will also allow analsysts to update their forecasts which may affect the valuation. If our estimated intrinsic value changes it will be reflected here .

If you want to dive deeper into Sea, you'd also look into what risks it is currently facing. Every company has risks, and we've spotted 2 warning signs for Sea you should know about.

If you are no longer interested in Sea, you can use our free platform to see our list of over 50 other stocks with a high growth potential

Simply Wall St analyst Richard Bowman and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Sea Ltd's (NYSE:SE) Valuation looks Reasonable Despite the Share Price rallying over 600% in the last 18 months - Yahoo Finance

There's a "crisis in investing education," according to mobile trading app Tornado's CEO and co-founder Bernard George.

"Every week, there are headlines about young investors, gambling on penny stocks and options, and even bankrupt companies. And our view is that the only way to really solve that problem is to make smart investing highly engaging, so it becomes that path of least resistance for people," George told Yahoo Finance Live on Tuesday.

With more time spent at home during the pandemic and the rise of no-fee trading, most notably Robinhood (HOOD), there's been an influx in first-time investors and traders.

However, George believes "the key question" for retail investors is "does your brokerage help you invest better?"

"And I think for a lot of investors, unfortunately, the answer is 'no,'" George added.

"[As] a lot of new investors enter the market, obviously there's a need for education and the ability to take that next step. And democratization of access to markets has been a wonderful, amazing thing. It's just left a lot of people in that state where they're looking for that next step, and how do I continue my journey towards becoming a better investor?"

According to George, Tornado's online brokerage centers around community through its social investing platform allowing for "meaningful conversation" with investors at all skill levels, curated and personalized educational content from "leading voices," and "world-class analytical tools." Tornado charges a $4.99 monthly subscription fee and allows for 25 commission-free trades, which creates "incentive alignment."

Tornado co-founder Bernard George

"[I] think because we've all learned over the past months and years, unfortunately, free trading isn't really free. It comes with a lot of conflict, and a lot of these brokerages, which rely on payment for order flow unfortunately have an incentive to direct users towards riskier, penny stocks and options, implicitly or explicitly. So, the brokerage model that we have with the subscription really does align the incentives with our community," George added.

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Tornado app

Initially founded in 2015 as Nvstr, the brokerage app rebranded last month as Tornado and announced a $10 million seed funding round led by former professional baseball player-turned-investor Alex Rodriguez, billionaire e-commerce entrepreneur Marc Lore, Barstool Sports founder Dave Portnoy, and New Enterprise Associates managing general partner Tony Florence. George noted that the seed investors bring a common thread of a "real passion for advancing financial wellness and investor education."

The proceeds from the seed round will go toward "scaling the platform tremendously in terms of the community" and "staying laser-focused" on the mission of "helping people take that next step in their journey towards becoming a better investor."

So far this year, George said Tornado has seen "a huge acceleration in growth and engagement," with a 68% increase in engagement rates on the platform.

"A lot of that I think is really telling of the appetite out there for content and community that helps you sort of take that next step in your journey towards becoming a better investor," he added.

Julia La Roche is a Correspondent at Yahoo Finance. Follow her on Twitter.

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Tornado CEO: There's a 'crisis in investing education' - Yahoo Finance

By Franca Quarneti via El Planteo.

Barack Obama, the former president of the United States, turned 60 and he celebrated with fancy decorations, friends and... marijuana!

The epic celebration took place on Saturday night at the Obama's mansion in Martha's Vineyard, Massachusetts and was attended by 300 exclusive guests, reported The Hill.

Beyonc, Jay-Z, H.E.R, John Legend, Chrissy Teigen, Gabrielle Union and Dwyane Wade, Trap Beckham, TJ Chapman and Erykah Badu were among the stars who gave the present, according to USA Today.

Leaked Images And Giant Blunts

Despite strict rules prohibiting the release of images on social media, some guests such as rapper Trap Beckham, singer Erykah Badu and manager TJ Chapman showed photos of the menu and decor. The snapshots showed napkins embossed with the text "4460" in gold lettering.

Why? Because Obama was the 44th president of the United States and because he turned 60.

Among the leaked photos, Trap Beckham and TJ Chapman could be seen smoking huge marijuana blunts. It is that, in the state of Massachusetts, the consumption of cannabis is legal.

"I had to delete everything because of the regulations. It was decidedly epic. If the videos transcended, they would go viral. He danced the whole time. No one has ever seen Obama like that before," Beckham commented on his social media.

However, the former president was harshly criticized for the lack of masks at his party and for the number of guests (originally there were 475 attendees, but the number was reduced due to the spread of the Delta variant of the coronavirus).

Photo: History in HD va Unsplash

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Happy Birthday Mr. President: Barack Obama Celebrated His 60th With Celebrities... And Weed! - Yahoo Finance

Rihanna has entered the billionaires club.

According to Forbes, the 33-year-old is now worth a whopping $1.7 billion making her the wealthiest female musician, and second only to Oprah Winfrey, as the richest female entertainer.

Although many know Rihanna for her music from hit singles "Umbrella" and "Where Have You Been" to "We Found Love" and "Work" she actually achieved the bulk of her income through her fashion and beauty brands.

Fenty Beauty, which launched in 2017, has contributed the most to the singer's wealth an estimated $1.4 billion, Forbes said.

The cosmetics company gained instant fame for its inclusivity of all skin tones, generating more than $550 million in annual revenue in its first calendar year. At the time, Fenty Beauty was one of the first (and most notable) brands to introduce a variety of foundation shades, and was especially popular among women of color.

The brand, currently sold online and at Sephora locations nationwide, is a 50-50 joint venture between Rihanna and fashion powerhouse LVMH (LVMUY) the conglomerate behind luxury brands like Christian Dior and Louis Vuitton.

In recent years, there's been an explosion of celebrity beauty brands with Kim Kardashian, Kylie Jenner, Jessica Alba and Lady Gaga all putting their names behind big makeup and skincare lines.

However, Rihanna is the most successful among the A-list pack, according to Forbes.

LOS ANGELES, CALIFORNIA - OCTOBER 1: Rihanna attends the second press day for Rihanna's Savage X Fenty Show Vol. 2 presented by Amazon Prime Video at the Los Angeles Convention Center in Los Angeles, California; and broadcast on October 2, 2020.

Besides Fenty Beauty, Rihanna also heads a successful fashion and lingerie company, Savage X Fenty.

Launched in 2018, the brand recently raised $115 million in funding bringing its valuation to over $1 billion. Rihanna maintains a 30% ownership stake, Forbes estimates.

The singer's success speaks to the larger story of female entrepreneurs, especially within Hollywood.

On Monday, Oscar-winning actress Reese Witherspoon reached an agreement to sell her production house Hello Sunshine to a Blackstone-backed media company. The New York Times said the deal valued Hello Sunshine at roughly $900 million.

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Meanwhile, Kim Kardashian was crowned a billionaire in April.

Forbes listed the reality star in its annual "World's Billionaire List" report, citing her lucrative businesses, KKW Beauty and loungewear company Skims, as catalysts for her billionaire status, in addition to extra cash from her reality series "Keeping up with the Kardashians" and endorsement deals.

Alexandra is a Producer & Entertainment Correspondent at Yahoo Finance. Follow her on Twitter @alliecanal8193

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Rihanna enters billionaires club but it's not her music that got her there - Yahoo Finance

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As you might know, Facebook, Inc. ( NASDAQ:FB ) just posted their latest second-quarter results with some very strong numbers. When looking at the company, three things come to mind. The "sell high" part from the clich phrase "buy low, sell high", diminishing future growth rates, and very high margins.

Let's open up with margins, because when you look at them, they are quite hard to wrap one's head around:

ebit-margin-ttm

From the chart above, we can see that Facebook has been regaining profitability in the last two years, this seems to be due to daily active user growth on a global scale, an increase of average dollars per user and the general expansion in Asia Pacific and the rest of the world.

You will also notice, that below I start making some quite pessimistic points, I would however, like to comment that Facebook has impeccable free cash flows, and on-point cash outflows regarding investing and financing. They prioritize R&D spending, which is exactly what investors would like to see in a tech company : Heavy capital and research & development investments. On a qualitative note, their advertisement platform has improved in functionality and efficacy quite a bit from a year ago, and their global reach has stayed in a leading position with the contributions from Instagram and WhatsApp.

Now let's see how Facebook has been growing thus far and what challenges lie ahead.

fb-daily-active-users

The chart above is interesting as it already showcases the stagnation of US and European daily user growth. You can find these results in their Q2 quarterly report. Facebook's CFO comments that there might be a bump in the future:

"In the third and fourth quarters of 2021, we expect year-over-year total revenue growth rates to decelerate significantly on a sequential basis... (We) expect increased ad targeting headwinds in 2021 from regulatory and platform changes, notably the recent iOS updates, which we expect to have a greater impact in the third quarter..."

Story continues

What we can incorporate from this, is that US and EU revenues will be under pressure, as iOS users will be given a choice to turn tracking on and off, which is estimated to diminish the returns from advertising. It won't be directly impacted per se, it's the ad targeting algorithm that is under threat, and Facebook will have to find a different heuristic or alternative approach to increase advertising revenue per user. US and EU users are particularly important, because they bring in US$51.5 and US$17.2 respectively per user, versus the world average of US$9.95.

This is partly the reason why the stock may be approaching a peak - Yes, there is still upside, but investors are now involved with a timing issue as the primary question starts being "When?", rather than "If?".

Now, we will take a step back and put history in context with analysts forecasts for the future.

Q2 earnings represented an overall positive result, with revenues beating expectations by 4.2% to hit US$29b. Facebook also reported a statutory profit of US$3.61, which was an impressive 20% above what the analysts had forecasted.

View our latest analysis for Facebook

earnings-and-revenue-growth

Following the latest results, Facebook's 45 analysts are now forecasting revenues of US$119.2b in 2021. This would be a meaningful 14% improvement in sales compared to the last 12 months. Statutory earnings per share are predicted to increase 2.9% to US$14.09.

The analysts reconfirmed their price target of US$414.

Facebook is and continues to be a high margin, cash delivery company. However, the financial market is a forward-looking weighing machine, and the future suggests a possible change in direction.

The company is stable and competently managed. Future challenges imply a revision of advertising practices, discovering new heuristics or improving on the existing algorithm, delivering further growth from the developing world and maintaining user engagement without sacrificing on margins.

For investors that had a very good run thus far, it is hard to ask for pause, but the past does not dictate, and I post two "common sense" questions:

Will the future bring more people to Apple's iOS? (look at the performance of the new iPhone)

When talking to people, are they bragging or trying to hide their time spent on any of Facebook's platforms?

The consensus price target held steady at US$414, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have forecasts for Facebook going out to 2023, and you can see them free on our platform here.

Simply Wall St analyst Goran Damchevski and Simply Wall St have no position in any of the companies mentioned. This article is general in nature. It does not constitute a recommendation to buy or sell any stock and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Facebook's (NASDAQ:FB) US and EU Growth has Peaked and Advertising Revenue is under Pressure from Competitors - Yahoo Finance