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6 Companies Losing Millions Weekly (And Still Pretending Everything’s Fine)

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Have you ever wondered how some of the world’s most recognizable companies can lose millions of dollars every single week and still act like everything is business as usual? It’s a fascinating—and sometimes alarming—reality in today’s fast-paced financial world. For investors, employees, and everyday consumers, understanding which companies are bleeding cash (and why) is more than just a curiosity. It’s a crucial insight into the health of the economy, the risks of investing, and the future of the brands we use every day. In this article, we’ll pull back the curtain on six major companies that are losing millions weekly, yet continue to project confidence. We’ll also share practical advice on what you can learn from their situations to make smarter financial decisions.

Keep reading if you’re interested in the truth behind the headlines or want to avoid getting caught up in the hype. The financial reality behind these companies might surprise you—and could even change how you think about your investments.

1. Peloton: Spinning Its Wheels

Peloton was once the darling of the pandemic era, with its high-end exercise bikes flying off the shelves. But as gyms reopened and demand cooled, Peloton’s financials took a nosedive. The company has reported hundreds of millions in losses in recent quarters, with CNBC noting a net loss of $194 million in just one quarter. Despite these staggering numbers, Peloton’s leadership continues to assure investors that a turnaround is just around the corner.

The lesson for consumers and investors is to look beyond the hype. Just because a company is a household name doesn’t mean it’s financially healthy. Always check their latest earnings reports and cash flow statements if you’re considering investing in a trendy brand. Don’t let slick marketing fool you—numbers don’t lie.

2. WeWork: The Office Space Mirage

WeWork’s story is a cautionary tale for anyone who believes in “fake it till you make it.” Once valued at $47 billion, WeWork’s business model of leasing office space and subletting it to startups seemed revolutionary—until it wasn’t. The company has been hemorrhaging cash for years, losing millions every week as demand for flexible office space plummeted post-pandemic. Even after filing for bankruptcy in late 2023, WeWork’s public statements remain oddly optimistic, insisting that a comeback is possible.

If you’re an entrepreneur or small business owner, WeWork’s saga is a reminder to scrutinize the fundamentals of any business you partner with. Don’t be swayed by buzzwords or charismatic founders. Instead, focus on sustainable business models and transparent financials.

3. Snap Inc.: Disappearing Profits

Snap Inc., Snapchat’s parent company, is another example of a company losing millions weekly while maintaining a positive public image. Despite a massive user base, Snap has struggled to turn a profit, reporting a net loss of $248 million in the first quarter of 2024. The company blames weak ad demand and increased competition, but continues to roll out new features and expansion plans.

For investors, Snap’s situation highlights the importance of understanding how a company actually makes money. User growth is great, but the business may not be sustainable if it doesn’t translate into profits. Always dig into the revenue streams and cost structures before making investment decisions.

4. Beyond Meat: Sizzling Hype, Cooling Sales

Beyond Meat was once the poster child for plant-based innovation, but the company’s financials have soured. Sales have declined, and losses have mounted, with the company burning through millions each week. According to CNN, Beyond Meat’s net losses have ballooned as consumer interest in plant-based meat alternatives wanes and competition heats up.

If you’re a consumer or investor, Beyond Meat’s struggles are a lesson in the dangers of chasing trends. Just because a product is popular for a moment doesn’t mean it will have staying power. Look for companies with a clear path to profitability and a loyal customer base.

5. AMC Entertainment: The Show Must Go On?

The world’s largest movie theater chain, AMC Entertainment, has faced enormous challenges since the pandemic. Even as moviegoers return, AMC continues to lose millions weekly due to high debt and changing consumer habits. The company’s leadership remains upbeat, often touting meme stock rallies and new business ventures, but the financial reality is grim.

For anyone holding AMC stock or considering a similar investment, this is a classic example of why you should separate hype from hard numbers. Don’t let social media trends dictate your financial decisions. Instead, focus on companies with strong balance sheets and realistic growth prospects.

6. X (Formerly Twitter): Tweeting Through the Turmoil

Since Elon Musk’s takeover, X (formerly Twitter) has been in the headlines for all the wrong reasons. The company has lost major advertisers, faced regulatory scrutiny, and seen its revenue plummet. Despite losing millions weekly, X’s leadership continues to project confidence and roll out new features. The company’s financial situation is precarious, and its future is uncertain.

For users and investors alike, X’s struggles are a reminder to be cautious about companies undergoing major leadership or strategy changes. Always watch for red flags like executive turnover, declining revenue, and negative press.

What You Can Learn from These Money-Losing Giants

The primary takeaway from these six companies losing millions weekly is simple: don’t be fooled by appearances. Just because a company is famous, innovative, or constantly in the news doesn’t mean it’s financially sound. As an investor or consumer, always do your homework. Read earnings reports, follow reputable financial news, and ask tough questions about profitability and sustainability. By staying informed and skeptical, you can avoid costly mistakes and make smarter choices with your money.

What do you think? Have you ever invested in a company that looked great on the surface but was losing money behind the scenes? Share your stories and thoughts in the comments below!

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8 Legal Scams That Keep the Wealthy Getting Richer

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Have you ever wondered why the rich seem to get richer, no matter what’s happening in the economy? It’s not just luck or hard work—many wealthy individuals and corporations use perfectly legal strategies that feel a lot like scams to the rest of us. These “legal scams” are built into the system, allowing the wealthy to protect, grow, and even hide their money in ways that most people can’t. Understanding these tactics isn’t just about curiosity; it’s about empowering yourself to spot the loopholes, ask better questions, and maybe even use some of these strategies to your own advantage. If you’ve ever felt like the financial game is rigged, you’re not alone. Let’s pull back the curtain and explore eight legal scams that keep the wealthy getting richer—and what you can do about it.

1. Offshore Tax Havens

Offshore tax havens are countries or territories with low or zero taxes, and they’re a favorite tool for the wealthy to stash their cash. The rich can legally avoid paying millions in taxes by moving money to places like the Cayman Islands or Switzerland. While this is technically legal, it means less tax revenue for public services, shifting the burden to everyday taxpayers. Trillions of dollars are hidden offshore. If you’re not a billionaire, your best defense is staying informed and supporting policies that close these loopholes.

2. Carried Interest Loophole

The carried interest loophole is a classic legal scam that lets hedge fund managers and private equity partners pay a much lower tax rate on their earnings. Instead of being taxed as regular income, their profits are taxed as capital gains, which are often taxed at half the rate. This loophole has been criticized for years but remains intact thanks to powerful lobbying. If you’re investing, understand the difference between income and capital gains taxes, and consider how you can maximize your investment returns within the law.

3. Real Estate Depreciation

Real estate is a goldmine for the wealthy, not just because property values tend to rise, but because of a legal trick called depreciation. Owners can claim a portion of their property’s value as a “loss” each year, even if the property is actually increasing in value. This reduces their taxable income and can even wipe out their tax bill entirely. Every day, investors can use this too—if you own rental property, talk to a tax professional about how depreciation can work for you.

4. Dynasty Trusts

Dynasty trusts are designed to keep wealth in the family for generations, often avoiding estate and gift taxes entirely. In some states, these trusts can last hundreds of years, allowing families to pass down fortunes without the usual tax hits. While most people don’t have enough assets to need a dynasty trust, understanding how trusts work can help you plan your estate. For more on how trusts can be used, check out this NerdWallet guide to trusts.

5. Stock Buybacks

Stock buybacks are when a company buys back its own shares, reducing the number available on the market and often boosting the stock price. Executives and wealthy shareholders benefit the most, as their shares become more valuable. While buybacks are legal, critics argue they prioritize short-term gains over long-term investment in workers or innovation. If you’re investing in stocks, pay attention to buyback announcements—they can signal both opportunity and risk.

6. Executive Compensation Packages

Top executives often receive compensation packages loaded with stock options, bonuses, and perks that are taxed at lower rates than regular salaries. These packages are structured to minimize taxes and maximize wealth, sometimes even allowing executives to defer taxes for years. If you’re negotiating a job offer, look beyond salary—ask about stock options, bonuses, and other benefits that could boost your long-term wealth.

7. Political Donations and Influence

The wealthy use political donations to influence laws and regulations in their favor, often through Super PACs and dark money groups. While donating to political campaigns is legal, it can lead to policies that benefit the rich at the expense of everyone else. Staying informed and voting in every election is your best tool to push back against this kind of influence.

8. Tax Loss Harvesting

Tax loss harvesting is a strategy where investors sell losing investments to offset gains elsewhere, reducing their overall tax bill. Wealthy investors and their advisors use this technique to minimize taxes year after year, sometimes even buying back the same investments later. While this is legal and available to everyone, most people don’t take advantage of it. If you have investments, talk to your advisor about how tax loss harvesting could work for you.

Leveling the Playing Field: What You Can Do

It’s easy to feel frustrated when you see how the system is set up to help the wealthy keep getting richer. But knowledge is power. By understanding these legal scams, you can make smarter financial decisions, advocate for fairer policies, and even use some of these strategies to your own benefit. Whether maximizing your retirement accounts, learning about trusts, or staying informed, every step you take helps level the playing field. Remember, the wealthy may write the rules, but that doesn’t mean you can’t play the game.

Have you ever noticed a “legal scam” in action or used a clever financial strategy yourself? Share your thoughts and stories in the comments below!

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Investment Concerns and Opportunities

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There are investment concerns and opportunities pretty much any way you turn. Healthcare looks great, but what about the costs associated with treatment? Technology is improving every day, but what’s going to happen with possible regulations? Is the FED going to pop our bubble?

Plenty can happen so let’s explore it together.

The FED

The FED doesn’t appear like it’ll stop its asset-buying program and accommodative monetary policy anytime soon, and it said just that in its most recent meeting.

That’s a good sign for the economy and for certain sectors. The industries that find the most favor are those that use heavy borrowing to facilitate growth efforts. These include construction, retail, information technology, transportation, and healthcare.

Commodity Prices

We continue to see a rise in commodity prices. Copper, oil, and lumber are all near record highs. I believe we’ll continue to see a steady increase in the price of copper. Copper is used in electronics, and with the further development of new technology, electric and autonomous vehicles, and green energy…the demand for the metal is just getting started.

Big Tech

Silicon Valley is bracing for possible regulatory troubles. There’s a new head of the FTC and she has her gloves on. Big tech has come under increased scrutiny in a few areas, including content, privacy, and antitrust. This causes investment concerns.

The federal government has a problem with social platforms and some of the content users post on their sites. There’s a thin line these companies walk because they can’t censor speech and they can’t promote speech. But some people post very harmful and hurtful things.

Also, antitrust cases are likely to come in full force because some of these companies are so gosh darn huge. They have so much pull, so much money, and too much market share (in a lot of cases).

What’s more, they no longer hide that they harness user data to make money. How much they sell to other parties and what they sell isn’t entirely known, but their privacy issues are also coming to head.

With all of that said, compliance costs are going to increase. What those companies look like and what they’re allowed to do will likely look different than what it is now. Only time will tell what happens to these companies.

Healthcare

I’m reading and hearing more and more excitement about the healthcare space and the investment opportunities that lie within. The speed at which the globe was able to produce three or four viable and useful vaccines for Covid is incredible. I heard today that it’s the first vaccine to be created in less than 5 years.

The global population is getting older by the day. Not only that, but the baby boomer generation is around retirement age, so they’re going to require more medical attention.

Prescriptions, medical devices, new and improved medical technologies are going to treat and possibly cure more and more illnesses.

Telemedicine looks to be a great investment opportunity. Last year, medical attention was quite high but 90% of that was done in person. Virtual visits, remote monitoring, and in-home testing will grow in popularity.

Investment concerns and opportunities abound, I’m excited for what’s to come in the tech and healthcare spaces.

Disclaimer:

**Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com

Crypto, Reddit, Stock Market Thoughts

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The last couple of weeks have been crazy in the stock market. With Reddit putting a short squeeze on Wall Street, crypto assets going gangbusters, and speculation about what inflation will do in the near future, there’s a lot to talk about.

Reddit vs Wall Street

Gamestop and AMC Entertainment are the two biggest names when we talk about Reddit investors.

A large number of shorts were put in by hedge funds and other big players on Wall Street. A specific Reddit account “recruited” its following to pile into the two companies named above. This group of “retail” investors drove the stock price up (as well as other investors that caught wind of their efforts).

Those hedge funds were forced to cover their shorts so they didn’t lose more money. The stock price for those two companies plummeted in the following days, but that doesn’t negate what Reddit did – they beat the big guys.

What’s a short?

A short is a type of trade. What you do is you borrow shares of a stock at a specific price in hopes that the stock price will drop. If it does, you buy back those shares at a lower price and collect the difference.

For example, if you bought shares of XYZ company at $20 and the share price of XYZ drops to $10, you would cover your short and earn $10 per share as a return.

It’s not for the faint of heart because stock prices effectively have no ceiling, so you could lose A LOT of money.

Crypto

Cryptocurrencies gained traction over the last few years as investors saw potential. After Bitcoin rose to $20,000 per BTC and crashed, it lost its allure.

Social media brought it back, thanks to Elon Musk. Slight changes in his Twitter bio moved the needle very effectively. Bitcoin is now hovering at $50,000 per BTC. Tesla invested a healthy sum in Bitcoin and will now accept payments in Bitcoin.

I believe other companies will adopt this policy and we will see Bitcoin used for purchases more regularly. There is a place for cryptocurrencies in this world, but it’s uncertain what kind of role it will play.

Short-term Thoughts

I go through quite a bit of research each week to get an idea of what the market environment looks like, what the economy is doing, and where there are risks and opportunities in the market.

With that said, the amount of times I’ve read the word “bubble” is alarming. The comparisons to the Dot Com Bubble and the Great Financial Crisis (GFC) are also a cause for concern.

Pundits are using the word “euphoria” more often.

There are a few things to pay attention to:

  1. The divergence between the stock market and the economy. Typically, near the end of the business cycle, a difference between how the market is doing and how the economy is doing grows. Eventually, things will revert to the mean. That’s to say, the difference between the two will shrink.
  2. Inflation. The Biden Administration is taking a different stance from past presidents. Inflation and overstimulation of the economy were areas of concern. President Biden is taking the other side of this argument, saying that he’d rather do too much, than not enough. Look for increased stimulus and less regard for inflation. If inflation starts to run hot, expect the FED to cool it down somehow.

Conclusion

Short-term policy changes and speculative movements in the stock market have little to no impact on the long-term performance of your portfolio. The one thing that really moves the needle is your behavior and how you respond to the news.

If you keep your long-term perspective in mind and keep your emotions in check, you should fare better than those that don’t.

Related reading:

Why Financial Literacy is Important

What You Can Learn from Different Market Environments

Some of the Practical Methods to Make Money Through BTC in 2021

 

*Securities offered through Securities America, Inc., Member FINRA/SIPC. Advisory services offered through Securities America Advisors, Inc. Securities America and its representatives do not provide tax or legal advice; therefore, it is important to coordinate with your tax or legal advisor regarding your specific situation. Please see the website for full disclosures: www.crgfinancialservices.com

A Shaky Earnings Season Might Be Your Wallet’s Best Friend

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There’s baseball season, football season, the holiday season and, of course, earnings season. While the first three may fill you with happiness and (in the holiday case) good cheer, earnings season fills new investors with confusion.

Why do I bring this up?

I woke yesterday morning to a nerve-wracking CNBC.com headline: Investors Brace for Shaky U.S. Earnings Season.

 

What is Earnings Season? Is It Contagious?

 

The good news: earnings season affects you directly, but not in the harmful way you may think.

Earnings season is the time (quarterly) when the majority of companies that move financial markets with their results declare how well they’ve performed recently. This news is for the prior quarter.

It’s important, when listening to reports about earnings, to listen for any future forecasting and to also determine what might have been the culprit behind a great or lousy prior quarter. If it’s increased sales on the same-old widget the company’s always sold, fantastic! If the company had a one-time mistake, things might still be looking up. If products just aren’t selling or management is quitting, it might spell bad news.

 

What Do I Need to Know?

 

Corporate earnings reports drive the stock market. Sure, financial markets respond to other pressures, but over time the stock market is simply a reflection of the economy. So, if you reread the headline above, Investors Brace for Shaky U.S. Earnings Season, what does that really mean?

Based on the information I told you above, it means this: companies didn’t have stellar profits last quarter.

That’s not nearly as shocking a headline, is it? In fact, I’ll bet you already knew that.

 

Move On, Nothing to See Here…..

 

Many investors read the CNBC headline above and think: I’ve gotta sell right now! If you’ve read my ramblings before, you’ll know that I think the opposite. I’m looking to buy when prices are low and sell when they’re high.

Here’s what I recommend instead of having a panic attack:

1) Rebalance your portfolio. Here’s how it works: if you’ve determined how much stock and bond exposure you want (among other asset classes), skim off the areas that have done well to fill in non-performing areas. Low markets are ideal times to rebalance because you’ll reaffirm your long term strategy, take gains from performing spots and redeploy in assets you already own that are low today. Smart move. Then, schedule another rebalance six months from now on your calendar.

2) Look for buying opportunities. If you’re interested in investing, shaky markets are a great place to place your first buys. Make your list of stocks to watch. Wait for earnings reports. Read what companies report, and make your move! Don’t make a common mistake and go whole-hog on a “can’t lose” investment. I’ve been involved with too many “can’t lose” things. I also told my dad I couldn’t lose my hair like he did. Glad I didn’t bet on that….

Not excited to make your own stock picks? Read our pieces on how to evaluate mutual funds and how Exchange-Traded Funds work.

3) If you’re nervous, put defensive measures in place. Use stop losses on individual stocks and exchange traded funds. Monitor fund results more frequently and establish a “worst case scenario” strategy. Remember this: never buy or sell everything on one day or at one time. It’s safer to march in slowly and march out slowly. An orderly walk toward the exit beats a panicked race to the door. Often, down markets rebound quickly.

CNBC, like other publications, is in the business of selling advertising. If the elevator is labeled “Up” or “Down” it’ll be a smooth and steady ride, but I’m sure CNBC knows that “Soar” and “Plummet” garner readers…and then advertiser dollars.

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Federal Reserve Report: Hang On For Rough Ride…

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Here’s a depressing recent headline. Today the Federal Reserve Bank of San Francisco released a report predicting that the financial markets are unlikely to be strong for the next…drum roll please…16 years!

Can this be accurate?

The report, titled “Boomer Retirement: Headwind for U.S. Equity Markets?” illustrates long-range, historical data which suggests that as the boomer generation moves into retirement, they’ll pull an increasing amount of money out of equity funds.  This can only mean increased pressure on stocks for years to come.

This is classic ‘supply & demand’ economics at work here, folks. 

Roughly 10,000 baby-boomers turn 60 EVERY DAY, a trend that will continue for the foreseeable future.  As each of these 10,000 individuals leaves the workforce, they need money to spend in retirement.  Where will their meals come from?  That’s right.  Their spending money will come, in part, from investment portfolios.

As the report points out “…to finance retirement, they are likely to sell off acquired assets, especially risky assets.  A looming concern is that this massive sell-off might depress equity values.”

Take a look at this projection:

According to the research in this report, P/E ratios, an indicator of potential stock prices, is slated to continue downward through the early 2020s before rebounding in the latter half of that decade.

“Figure 2 shows that P/E should decline persistently from about 15 in 2010 to about 8.4 in 2025, before recovering to 9.14 in 2030.”

The report continues: “The model-generated path for real stock prices implied by demographic trends is quite bearish.  Real stock prices follow a downward trend until 2021, cumulatively declining 13% relative to 2010…real stock prices are not expected to return to their 2010 levels until 2027.”

Ouch.  That could sting a little.

So what does this data imply?

Should we all be in bonds until 2030?  Quite the contrary.  There will likely still be bullish trends throughout the upcoming cycle, so it pays to be vigilant. 

Instead, I believe this heralds the end of “buy and hold and you’ll be fine” investing.

This mean you’ll need to be cognizant of market trends and invest accordingly.  What does your advisor think about this report?  In all likelihood, he’s never heard of it, and will probably say something like “Just invest and stick with the plan, and you’ll be OK.”

You can do better.  If you just pay attention to the signs, you can profit from both sides of the market, both the ups and downs.  You just have to pay attention.

If you’d like to read this report for yourself, it’s available here or type in http://www.frbsf.org/publications/economics/letter/2011/el2011-26.html to read for yourself.

I’m interested in your thoughts…post your comments below.