AI is taking jobs

and typo sent Lyft higher

Good morning investors! Bitcoin is having another great run and its market cap is back to a trillion. On the other hand, the stock market recouped after the big sell-off.

Fun fact: The word salary can be traced to ancient Rome and the history of salt. Roman soldiers were historically paid in coin, but it is also said that they were paid in salt. Some even say the word salary is derived from the word salt, due to the salt allowances of soldiers. #whysosalty

Today we cover:

  • AI taking jobs.  

  • Lyft earnings (with a typo).

  • Tax free incomes.  

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 Economy and News 

AI is already taking jobs

Cisco says its cutting 5% of its global workforce, amounting to over 4,000 jobs, and it isn't the only company to do so. Layoffs are happening at a rapid pace and while not all are contributed to AI, companies like Canva and Duolingo have accepted that theyre replacing workers with robots or AI. Even British Telecom aims to replace 55,000 jobs with AI by 2030.

About 30% of workers worldwide fear that AI might replace their jobs within the next three years. These concerns are higher in some countries than others. For example, about 74% of workers in India are afraid of losing their jobs due to AI.

It is estimated that AI could potentially replace around 800 million jobs worldwide by 2030, while having an economic impact of $15.7 trillion by the same year.

This will change how businesses hire and train with over 120 million workers needing retraining and about 45 million Americans losing jobs due to AI. But these are just expectations and the situation currently isn't that bad but it's fast worsening.

About 14% of workers have experienced job displacement due to AI. This increases the need to gain more skills and think of passive ways to earn money.

Would you like a webinar on how to make money in AI era (without a job)?

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Global hits:


S&P 500 5,000.62 (+0.96%)
DJIA 38,424.27 (+0.40%)
NASDAQ 17,807.63 (+1.18%)
BRENT CRUDE 81.23 (-1.25%)
* Prices as of Feb 15th, 12:20 AM UTC

A typo a day, keeps tension at bay (Lyft!)

A typo in Lyfts fourth-quarter earnings report helped the company jump higher on Tuesday.

In an earnings statement released after the bell, Lyft estimated its gross margin would expand by 500 basis points, or 5 percentage points.

However, Lyft appeared to include an errant zero in its numbers: The companys actual estimate is much lower, at 50 basis points or a half a percentage point.

Lyft CEO David Risher took responsibility for the error.

The stock was still up after the correction, as it beat estimates, but it lost much of its initial pop, equal to over $2 billion in market cap.

Lyft shares jumped 35% on Wednesday to $16.09, their best day since the companys IPO in 2019. However, the stock is still about 77% below its debut price.

Trouble for airlines: Airfares may be getting cheaper but theres more to worry about since flight attendants are now pushing airlines to increase wages, shortly after pilots got a 21% raise.

Also, Delta Air Lines is paying out $1.4 billion in profit sharing, more than double what it paid employees a year ago.

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 Personal Finance

Incomes that are tax free - Part I

We want you to save tax money. So, lets introduce you to some incomes that arent taxed (in the US).

You will find alternatives abroad. For example, one-third of the family pension, subject to the maximum of Rs. 15,000 will be exempt, if you are a widow in India. 氣 

Similar exemptions apply in other countries as well. However, for the purpose of this piece, well focus on the US. 綾 

Up to $3,000 of Income Offset by Capital Losses

Selling investments at a loss can end up being slightly beneficial. Though not the same, it works in the same manner as seen in the case of Warner Bros where the loss from Batgirl helped lower taxable income significantly.

However, the amount is capped at $3,000 per year. On the plus side, you can carry over capital losses from year to year until you offset your entire loss.

Sale of a Principal Residence

This is one of our favorites because it can help you save a lot of money.

Theres a catch: you must meet the IRS's ownership and use tests, i.e.:

  • Must have owned the home for at least five years

  • Must have lived in the home as a principal residence for at least two of the last five years

Those who meet these conditions can exclude up to $250,000 (for individuals) or $500,000 (for married couples filing jointly) from their income (of capital gain) when they sell the property.

So, be wise and choose the right time to sell your primary residence.

Earned Income in these states

Some US states are more tax friendly than others. These eight states have no individual income tax:

  • Florida

  • Alaska

  • Nevada

  • Tennessee

  • South Dakota

  • Texas

  • Washington

  • Wyoming

Another state that has our interest is New Hampshire, which also does not tax earned income from wages and salary but does tax interest and dividend income. Also, while most states do not tax Social Security income, you will still have to pay taxes on it due to federal laws.

Be a Better Investor

"Without continual growth and progress, such words as improvement, achievement, and success have no meaning."

Benjamin Franklin

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