💁 Walmart beats but trouble ahead

Together with Mode Mobile

Good morning investors! The market appears confused as investors await for data.

Today we cover:

• Time to invest in gold?

• More earnings (Alibaba and Walmart)

• Avoiding IRS audits

📈 Advisors, passionate about helping clients build a secure financial future? We could use more skilled professionals to meet growing demand.

📊 Economy and News 

Gold’s 2025 Rally Set to Continue Amid Market Uncertainty

Gold’s surge in 2025 is expected to persist as geopolitical volatility, central bank demand, and concerns over supply push prices higher. Since mid-December, spot gold has soared from $2,587.6 to $2,941.1, repeatedly breaking record highs.

UBS has revised its gold price forecast upward, projecting a peak above $3,200 in late 2025 before prices stabilize at elevated levels. Uncertainty surrounding U.S. trade policies, particularly potential tariffs, has further fueled gold’s appeal as a safe-haven asset, according to the World Gold Council. Market disruptions, including shifts in physical gold availability due to large U.S. imports, have also contributed to price volatility.

Investor "FOMO" is adding to the rally, with many looking to seize buying opportunities after missing out in 2024, said UBS strategist Joni Teves. Central banks continue to boost their gold reserves at record levels, intensifying demand.

Gold-related stocks such as Wheaton Precious Metals, Osisko Gold Royalties, and Franco-Nevada are poised to benefit, according to some experts.

For those who crave something tangible: Prepperverse Gold Bars offer real gold that breaks into smaller pieces—perfect for preppers seeking solid security in uncertain times!

Global hits:

• Moody's affirms Egypt's Caa1 ratings with positive outlook. On the other hand, BofA lowers Korea 2025 GDP growth forecast amid risks.

• Bank of Mexico says it might cut interest rate by 50 basis points again as Mexican president sees economic growth in 2025, despite tariff threat.

• Bank of Israel to hold rates again after inflation spike.

Reminder: Treasury sets March 21 deadline for millions of businesses to report ownership information or risk fines of $10,000 or more.

Sponsored by Mode Mobile

Data Just Made Palantir Worth $250B - Is This #1 Software Company Next?

Palantir just rocketed to $250 billion by helping companies extract value from user data.

The big data gold rush is here, but the company that stands to profit the most may not be Palantir…

• A new disruption to smartphones gives users a share in the data profits, already facilitating +$325M in earnings and generating +$60M in revenue.

• With 32,481% revenue growth, this company is gearing up for a possible Nasdaq listing (stock ticker: $MODE), and pre-IPO shares are available at only $0.26/share.

It’s a $1 trillion industry, and their disruptive EarnPhone is now being distributed by Walmart and Best Buy.

📈 Stocks

S&P 500 6,117.52 (-0.40%)
DJIA 44,176.65 (-1.01%)
NASDAQ 19,962.36 (-0.48%)
BRENT CRUDE 76.63 (+0.78%)
* Prices as of Feb 21st, 12:20 AM UTC

Walmart beats expectations but falls after disappointing forecast

Walmart forecasted lower-than-expected profits for fiscal 2026, raising concerns over consumer spending amid inflation and economic uncertainty. Its stock dropped 7% in pre-market trading. Despite recent growth, Walmart expects annual sales to rise 3%–4%, slightly below analysts' 4% estimate. It projects earnings of $2.50–$2.60 per share, missing Wall Street’s $2.76 forecast.

Walmart's Q4 U.S. comparable sales grew 4.6%, beating expectations. Total revenue rose 4.1% to $180.6 billion, with e-commerce sales surging 20% due to faster delivery. Higher-income households drove market share gains.

Also, Amazon surpassed Walmart in quarterly sales for the first time, reporting $187.8 billion compared to Walmart’s $180.5 billion. However, Walmart still leads in annual sales as Amazon closes the gap.

Interesting: Airbus could prioritize deliveries to non-U.S. customers if Trump tariffs impede trade, CEO says. Elsewhere, Chinese smartphone firm Oppo launches slim $1,870 folding phone to rival Samsung, Huawei.

💵 Personal Finance

Do This To Avoid IRS Audits

As millions of taxpayers file their returns, many are concerned that certain claims could increase their chances of being audited by the IRS.

Following a funding boost, the agency expressed intentions to more than double the audit rate for the wealthiest taxpayers. However, with leadership changes and a Republican-controlled Congress and White House, the IRS’s future priorities remain uncertain.

Common IRS Red Flags for Audits

Errors in Personal Information

Typos in names or Social Security numbers can trigger IRS scrutiny. Double-check your details before filing to avoid unnecessary audits.

Incomplete or Mismatched Information

Ensure your federal and state tax returns align. The IRS and state agencies share data, and inconsistencies can invite inquiries.

Math Mistakes

Miscalculations in deductions or expenses can lead to audits. If your return involves complex calculations, consider a CPA review before submission.

Large Changes in Income

Sudden spikes or drops in income can raise suspicion. Significant swings should be well-documented to justify the fluctuations.

Round Numbers & Repeated End Digits

Too many zeroes or repeated numbers suggest estimates rather than accurate records, which may prompt further review.

Amended Returns

Corrections to previous filings, especially those reducing tax liability, often attract IRS scrutiny. Ensure accuracy and provide clear explanations.

Large Refunds or Net Operating Losses

Substantial refunds or loss carryovers may trigger audits, as these often involve technical calculations prone to error.

Foreign Accounts & Income

The IRS closely monitors unreported foreign bank accounts, trusts, and cross-border transactions. Ensure full disclosure to avoid penalties.

Use of Shady Tax Preparers

Unscrupulous tax professionals can put you at risk. The IRS tracks preparers using PTINs and investigates questionable filings.

Cash Transactions & Underreported Income

Cash-heavy businesses and professions with unreported earnings, such as tips or off-the-books sales, face higher scrutiny.

Home Office & Business Expense Deductions

Claiming a home office without meeting strict requirements or inflating business expenses—such as meals and travel—can raise red flags.

Charitable Contributions & Medical Deductions

Overstating donations or medical expenses, especially without proper documentation, may lead to IRS challenges.

Rental Property Losses

Repeated or large losses on rental properties can indicate tax evasion rather than legitimate financial struggles.

Industry & Regional Discrepancies

The IRS compares taxpayer earnings within professions and geographic regions. If your reported income is an extreme outlier, expect closer examination.

💰 Be a Better Investor

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• Calculators

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• Side Hustle Ideas

• Stock Deep Dives

• Investing 101 videos

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.

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Disclaimers

1 Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.

2 The rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.

3 A minimum investment of $1,950 is required to receive bonus shares. 100% bonus shares are offered on investments of $9,950+.