BUSINESS

Lennar’s (LEN) asset-light strategy was intended to make the homebuilder more nimble.Bank of America also said it might complicate the earnings story.The brokerage restated its Underperform rating on Lennar, cutting its price target to $77 from $84 and reducing its profit projections after the homebuilder’s fiscal second quarter results. It wasn’t the quarter itself that was the real problem. Lennar’s profits were mostly in line with estimates, with gross margin indicating stabilization.The bigger issue is what BofA sees coming.The bank is warning that Lennar’s land-light business, which focuses on managing homesites through land banks and options rather than outright land ownership, may involve a growing cost that hasn’t completely hit the income statement yet.That matters since Lennar’s turnaround has been crucial to its investor presentation. The corporation has maintained that holding less land can decrease balance-sheet risk, increase flexibility and make the business more capital efficient. BofA now questions the timing of the payout.BofA warned that Lennar’s “near-term margins understate the economic burden” of its land-bank costs.BofA puts Lennar’s land-light strategy under pressureThe BofA call is compelling because it captures the essence of Lennar’s transformation story.Lennar has been seeking to move away from the traditional homebuilder model, in which businesses buy and retain big swaths of land before erecting homes. Instead, Lennar has shifted to a more asset-light model that employs land banks, option contracts and faster inventory rotations.That can be an enticing option in a tough housing market. Financing affordability is tight, buyer demand is uneven and builders have resorted to employing pricing, incentives and financing instruments to move homes.It is safer in such a world to own less land.Lennar has called the plan a “fundamental reimagining” of its business, saying its land developer agreements and land-bank relationships generated a just-in-time finished homesite model that saves cash locked up in land and improves operational flexibility.But BofA’s issue is that land-light isn’t always cost-light. It can just affect the timing and nature of some expenses flowing through Lennar’s financials.That’s the bombshell in the note.BofA said Lennar has around $18.5 billion of partner capital in managed lots. Option maintenance expenses pay for the implicit cost of capital in those agreements, which is about 10%. The firm stated those fees are paid in cash when incurred but capitalized to deposits and pre-acquisition expenditures on real estate and then flow through cost of sales when homesites are purchased and delivered.Related: What the stock market is saying about the housing marketIn plain English, BofA is saying that Lennar may be paying more now than investors can see in current margins. That creates a timing mismatch, and it raises the likelihood that margins come under more pressure as those costs feed through to future deliveries.Lennar’s quarter looked stable but BofA focused on what comes nextLennar’s fiscal second quarter wasn’t a disaster.The company reported net earnings per diluted share of $1.24, or $1.31, excluding mark-to-market losses on technology investments. It delivered 20,519 homes, up 2% from a year ago, but new orders declined 4% to 21,749 dwellings.Gross margin on home sales was 15.6%, down from 17.8% a year ago, but management forecasts a gross margin of around 16% for the fiscal third quarter. Lennar also lowered its full-year delivery forecast to 82,000 to 83,000 homes and sees fiscal third-quarter deliveries of 20,500 to 21,500 units.It’s these data that have BofA looking beyond the headline earnings number.The company cut its fiscal 2026 earnings-per-share projection by 10% and its fiscal 2027 estimate by 8% because of reduced deliveries and poorer income from financial services. It also dropped its price target to $77 from $84, saying Lennar’s value looks inflated given a lower return-on-tangible-equity expectation.The more serious investment problem is the land bank issue.Lennar’s deposits and pre-acquisition expenditures on real estate rose $237 million from the prior quarter, largely due to capitalized option maintenance fees, BofA said. The firm expects that balance to continue to grow until it stabilizes in around two years as Lennar expands its asset-light approach.More Real Estate:Why selling a home to your child for a dollar can backfireCommercial Real Estate Outlook 2026: Analysts See Signs of RecoveryRedfin says mortgage rates, profits are hitting real estate nowThe reason is evident from Lennar’s own investor presentation. The company said land banks had an estimated $18.5 billion of inventory under management as of Feb. 28, and it touted its asset-light strategy as a less risky way to control lots compared with holding more land on the balance sheet.This situation creates the primary pressure on Lennar stock. The corporation prefers a more flexible model. BofA sees the cost continuing to grow until margins are fully normalized.

Lennar’s housing reset may not be as light as it looksBloomberg / Getty Images

Lennar investors now have a margin problem to watchFor Lennar investors, the question is not whether the business can sell homes.The question is whether the corporation can prove that its land-light move provides higher profits when it takes all the expenditures into account. Over the next several quarters, gross margin, deposits and pre-acquisition expenditures, deliveries, and incentives will be especially crucial.Lennar has some advantages. The company said that building costs fell consecutively and that it improved cycle time to a record low. Management also predicted the homebuilding gross margin should be around 16% in the fiscal third quarter.But BofA’s caution indicates that investors should not simply look at gross margin.Land-bank expenses are rising, and therefore stabilizing the margin may not be enough to support the stock. Lennar also cut its full-year delivery guidance, and BofA said demand is still turbulent as purchasers are feeling affordability pressure.That leaves Lennar in a pickle.Key takeaways for Lennar investorsBofA reiterated its Underperform rating on Lennar.The firm cut its price objective to $77 from $84.BofA lowered its fiscal 2026 and 2027 earnings estimates.The bank says land-bank costs may pressure future margins.Lennar lowered its full-year delivery outlook to 82,000 to 83,000 homes.Investors should watch whether land-light savings outweigh rising option costs.The corporation is seeking to protect volume and enhance efficiency and change its land strategy at the same time. If the asset-light strategy works, it may be supportive of stronger long-term returns and a better valuation case. If BofA is accurate, the switch might squeeze earnings before investors get to realize the upside.BofA’s warning changes the Lennar stock debateLess land ownership can minimize risk, free up funds and provide a corporation greater flexibility should the housing market slow. That’s the tale Lennar wants investors to buy, and it’s why the firm has been working to convince backers it’s more of an efficient, asset-light homebuilder.BofA is getting investors to think about the other side.Lennar’s methodology could mean a deferred cost that could hurt profits as the company buys and sells house sites managed through land bank agreements.That sharpens the stock debate.Lennar is no longer measured by deliveries or quarterly earnings. The question is whether its whole asset-light transition can yield superior returns before the land-bank costs weigh too heavily on profitability.That’s why BofA’s caution is significant.If Lennar’s land-light model can sustain capital efficiency and margins rebound, the business will be able to support its long-term argument with investors. But if costs keep piling up and returns remain under pressure, BofA’s $77 price objective could start to feel less like a prudent judgment and more like an early warning.Related: Warren Buffett, Greg Abel send key message on housing

The buyback comes as newly public digital-asset firms face a tougher environment, with crypto markets lagging and investor attention shifting toward AI stocks.

Fewer than 1 in 20 U.S. households hold $1 million in their retirement accounts, even though most Americans treat that figure as the threshold for a comfortable retirement.Research from federal agencies and private firms continues to show that the typical household saves far less than the seven-figure threshold respondents themselves identify as necessary.The collective research raises a difficult question about whether seven figures is a realistic savings target for the typical American household.Survey data shows the typical retiree falls far short of seven figuresOnly about 4.7% of U.S. households held $1 million or more in retirement accounts in 2022, up from 3.2% in 2019, according to Employee Benefit Research Institute analysis of the Federal Reserve’s most recent Survey of Consumer Finances.A Clever Real Estate survey published in January 2026 found that the typical American retiree holds just $288,700 in combined savings and investments.The same survey revealed that 29% of retirees have no retirement savings at all, while only 23% reported having more than $500,000 set aside.Despite those numbers, about 40% of retirees in the Clever Real Estate survey said they believe it takes at least $1 million to retire comfortably, and 92% said most people underestimate the cost of a comfortable retirement.Allianz Life finds that half of U.S. adults have cut retirement contributionsThe savings shortfall is not limited to people who have already retired, and new research suggests the problem could grow worse for future retirees. 51% of U.S. adults said they had reduced or stopped contributing to their retirement savings in the prior six months, Allianz Life reported.The insurer’s fourth-quarter 2025 Quarterly Market Perceptions Study, which surveyed 1,005 respondents in the contiguous U.S., found that 66% said they had been unable to contribute as much to their savings in the prior six months due to the current economic environment.While it may seem to hurt less in the short-term, cutting back on retirement savings now may hold back your ability to achieve your retirement goals in the long runYounger workers felt the most impact, with 62% of Gen Z and millennial respondents reporting cutbacks compared with 46% of Gen X respondents or 36% of boomers. “Achieving your dream retirement generally takes continual incremental progress over your working years,” Kelly LaVigne, vice president of consumer insights at Allianz Life, said.Nearly half of respondents (47%) told the firm they had withdrawn money from existing retirement savings to cover household expenses during that same period.Health care costs are adding further pressure, with 59% of those surveyed saying they now prioritize medical expense savings over all other financial goals.

Retirement savings are taking a hit as rising costs force many Americans to cut contributions and tap existing retirement funds.Halfpoint Images/Getty Images

Northwestern Mutual’s retirement target reveals the scale of the savings gapThe average American said $1.26 million was necessary for a comfortable retirement, a target Northwestern Mutual’s 2025 Planning and Progress Study labeled the “magic number.”That figure declined about $200,000 from the prior year’s record of $1.46 million, but it still vastly exceeds what the typical household has saved. More Retirement:Vanguard drops playbook on retirement incomeVanguard warns workers losing thousands in 401(k)sFidelity’s wake-up call on Social Security, IRAs, and 401(k)sJohn Roberts, chief field officer at Northwestern Mutual, noted in the report that the lower figure still vastly exceeded what most households had saved.Among respondents with some retirement savings, one in four reported having just 1 year or less of their current annual income set aside. More than half (51%) said they considered it somewhat or very likely that they would eventually outlive their retirement savings, the study found. The benchmark has since risen again, with the firm’s 2026 edition of the same study placing the comfortable retirement target back at $1.46 million.Higher 2026 contribution caps give savers more room to catch upCongress and the Internal Revenue Service have expanded the room available for workers to save, with 2026 contribution limits rising across major account types. The employee deferral limit for 401(k) plans increased to $24,500 this year, and workers aged 50 and older can add an $8,000 catch-up contribution.Individual retirement account (IRA) limits also rose, reaching $7,500 for those under 50 and $8,600 for savers aged 50 and older in the current tax year.Roberts stressed that workers should pair those higher limits with a comprehensive and personalized financial plan tailored to their specific circumstances and retirement timeline.LaVigne encouraged savers to consult a financial professional who can help balance current household demands with the long-term objective of building adequate retirement funds.Across the EBRI, Allianz Life, and Northwestern Mutual data, the typical household’s savings remain well below the targets respondents themselves identify as necessary for a comfortable retirement.Related: Retirees who follow the 4% rule may face a rude shock

Elon Musk just made his biggest bet yet on artificial intelligence.Days after SpaceX’s record-breaking stock market debut, the company confirmed it would acquire Anysphere, the San Francisco-based startup behind the popular AI coding tool Cursor, in a deal valued at $60 billion.The move puts SpaceX (SPCX) in direct competition with Anthropic and OpenAI in one of the hottest corners of tech right now: AI-powered coding tools.What is Cursor, and why does it matter so much?Cursor launched in 2023 and helps software developers write, fix, and automate code faster using artificial intelligence. The platform lets users toggle between AI models from OpenAI, Anthropic, xAI, Google, and others.The tool became one of the fastest-growing startups in Silicon Valley history, according to Bloomberg. It now has more than one million users and already pulls in billions in annualized revenue, the Wall Street Journal reported.That user base is what makes it so attractive. In an interview with The Guardian, PitchBook analyst Harrison Rolfes put it plainly: “Owning the tool that professional developers already trust daily is a faster path to enterprise AI revenue than winning the model race.”Related: Franklin Templeton CEO sends strong message on SpaceXCursor competed with Anthropic’s Claude Code and OpenAI’s Codex, but without SpaceX’s computing resources, its growth hit a ceiling. Access to SpaceX’s Colossus supercomputer in Memphis, Tenn., which houses around one million H100-equivalent chips, changes that equation entirely.SpaceX is playing catch-up SpaceX’s AI division, xAI, has openly lagged behind rivals like Anthropic and OpenAI on coding capabilities.Musk has admitted the gap is real. The company has been quietly poaching engineers from Cursor for months, Bloomberg reported. SpaceX teams and Cursor employees were already collaborating on coding and compute as recently as May.The formal acquisition closes the loop.In an interview with The Guardian, Gil Luria, head of technology research at DA Davidson, said the deal will “improve SpaceX’s position in the frontier model race with Anthropic and OpenAI.” He added that Grok, xAI’s chatbot, “has to have a coding component that enterprise customers can utilize side by side with Anthropic Claude Code and OpenAI Codex.”Right now, enterprise clients have largely avoided Grok. Cursor’s brand credibility with professional developers gives SpaceX a much faster path to those lucrative corporate contracts.

SpaceX widens its AI moatSpencer Platt/Getty Images

The SpaceX-Cursor deal termAnysphere investors will receive $60 billion worth of SpaceX stock, as per a regulatory filing. The transaction is expected to close in the third quarter of 2026. Crucially, the deal will not use proceeds from SpaceX’s IPO.SpaceX originally locked in the option to acquire Cursor back in April, according to The Guardian, paying to either buy it outright for $60 billion or pursue a $10 billion partnership.The timing of the formal announcement is no coincidence. SpaceX’s stock surged roughly 50% in its first few trading sessions after its IPO, pushing its market valuation past Amazon’s to make it the world’s fifth-most-valuable publicly traded company, according to Bloomberg. More SpaceX:SpaceX IPO creates a tough call for small investorsSpaceX IPO gives Elon Musk net worth number that stuns Wall StreetFormer Tesla board member issues candid message on SpaceX stockAs hedge fund billionaire Bill Ackman noted on X: “The Cursor acquisition costs materially less in dilution because of SpaceX’s high valuation.”Ackman added, “SpaceX’s ability to do economically, strategically, and technologically accretive acquisitions is an important component of its value. There is enormous value inherent to a company with a high value particularly when it is controlled by an entrepreneur that the most talented people want to work for and partner with.”In other words, a higher stock price means SpaceX issues fewer shares to fund the deal, a key advantage.SpaceX posted revenues of $18.7 billion in 2025, though it also recorded a net loss of $4.9 billion as it absorbed xAI’s debt. The Cursor deal signals that SpaceX is doubling down on its AI ambitions.Related: Oppenheimer issues bold SpaceX stock price target

Greg Abel has been running Berkshire Hathaway for barely six months, and he has already reshaped the contours of the conglomerate’s stock portfolio. His latest move is the largest single technology bet in Berkshire’s history, aimed at a company Buffett spent decades publicly regretting he had not bought sooner. Abel committed $10 billion to Alphabet (GOOGL) through a private placement inside the tech giant’s massive $84.75 billion equity raise this month. That purchase came in addition to the roughly $10 billion to $11 billion he is estimated to have spent buying Alphabet shares on the open market during the first quarter, based on how many shares Berkshire added and the stock’s average price in Q1 2026.Abel secured a 6.5% discount in Alphabet’s historic $84.75 billion equity raiseThe $10 billion placement was split between Alphabet’s Class A and Class C shares at prices roughly 6.5% below market, according to securities filings.The deal originated from a weekend phone call from Goldman Sachs to Berkshire, which was assembling Alphabet’s broader offering as placement agent and joint book-running manager, Bloomberg reported. Abel quickly signed off on the $10 billion commitment, reinforcing what Bloomberg called Berkshire’s role as the first port of call for companies seeking large capital infusions.David Kass, a finance professor at the University of Maryland and a longtime Berkshire shareholder, told CNBC the Google discount echoes Berkshire’s 2008 crisis-era investments in Goldman Sachs and other companies.Berkshire’s Alphabet stake grew from $4 billion to $26 billion in under a yearBerkshire first purchased Alphabet shares in the third quarter of 2025, building a position valued at roughly $4.3 billion, according to Berkshire’s 13F filing for the period ended September 30, 2025.Once Abel took control on January 1, 2026, the pace of accumulation accelerated sharply, and he more than tripled the stake during the first quarter.That buying spree added roughly 36.4 million Class A shares, bringing total Alphabet holdings to approximately $15.6 billion by March 31.The subsequent $10 billion private placement pushed total Alphabet exposure past $26 billion, making it one of Berkshire’s five largest common stock positions. As of the first quarter filing, Apple led the portfolio at roughly 22%, followed by American Express, Coca-Cola, Bank of America, and Chevron.

Berkshire’s Alphabet investment surged from $4 billion to more than $26 billion in less than a year after aggressive buying.Michael M. Santiago/Getty Images

Google Cloud growth and AI capex anchor the case for Alphabet’s elevated valuationAlphabet plans to deploy proceeds from the private placement and underwritten offerings toward AI compute infrastructure, while approximately $30 billion from the separate at-the-market program is earmarked for 2026 employee equity tax obligations, the company disclosed in its June 1 prospectus.Management outlined planned capital expenditures between $180 billion and $190 billion for 2026, with a further significant increase projected for the following year.The spending is already producing visible returns in the company’s cloud computing division, which posted 63% revenue growth in the most recent quarter. More Warren Buffett:Warren Buffett’s Berkshire sends jarring signal to stock buyersOne of Warren Buffett’s dividend stocks is key to reopening Strait of HormuzWarren Buffett’s Berkshire warns Americans on housing marketGoogle Cloud’s operating margin expanded to 32.9% from 17.8% a year earlier, transforming the segment from a cash consumer into a profit contributor.Alphabet’s total revenue climbed 22% year over year in the same period, with improving results across both cloud and core advertising. At roughly 25 times forward earnings, the stock trades below Apple’s forward multiple of about 30-34, depending on the data provider.Buffett endorses Abel’s pace as observers weigh his tech turnBuffett also praised Abel’s other early move, the $6.8 billion acquisition of Taylor Morrison, announced the same week. Kass added that the Alphabet commitment reveals a genuine comfort with technology that distinguishes Abel from his predecessor’s established patterns, describing Abel as willing to move quickly across both transactions and comfortable investing in tech.Greg did that faster than I could have done it, smoother than I could have done it, and I never talked to the CEO, He has launched.The distinction carries weight because Buffett spent decades defining Berkshire around businesses he understood intuitively, such as insurance, consumer brands, and banking. He famously characterized Berkshire’s hugely profitable Apple position as a consumer products bet rather than a technology wager, as CNBC reported in its June 2 analysis of Abel’s deal spree.What the Alphabet concentration reveals about Berkshire’s direction under AbelAbel’s first six months have also included the Taylor Morrison deal, a housing bet that pairs against the Alphabet tech bet to suggest a deliberately diversified opening hand.He simultaneously closed or reduced more than a dozen positions inherited from the prior portfolio, signaling a preference for concentrated capital deployment.Berkshire ended the first quarter with a record cash pile that CNBC put at nearly $400 billion, giving Abel room to continue adding to existing stakes or pursue new ones entirely. Whether the Alphabet position is likely to grow further depends on the stock’s price trajectory and on Google Cloud’s ability to sustain its growth.Abel has preserved Berkshire’s longstanding discipline around valuation, as the negotiated 6.5% discount demonstrates. The Alphabet position also shows Abel willing to count AI infrastructure among the durable, cash-generative businesses that historically defined Berkshire’s circle of competence.Related: Warren Buffett’s Berkshire sends jarring signal to stock buyers

After 12 years of building Dreamers & Doers, founder Gesche Haas sold the bootstrapped women’s entrepreneurial community. Her exit reflects a much larger shift in what we value—and what we’re willing to pay for.

The 2026 United States Open is the next major on the PGA Tour schedule, and predicting who will claim victory at Shinnecock Hills Golf Club is anyone’s guess.

Without an update to the current auditing infrastructure, the crypto space will likely continue to suffer significant losses, explains Beyer.

The June 19 federal holiday falls on a Friday this year. Here’s how trading hours and other services are affected.

Travel season is upon us.Some 67% of Americans plan to take one or more domestic trips this summer, and 41% plan international travel, according to a survey from U.S. News. But for many of those travelers, these summer vacations may not play out how they were originally envisioned. Around 65% of all vacationers say that their travel plans have been affected in some way due to rising prices.As travelers look for ways to offset rising vacation costs, Walmart is expanding one of its lesser-known membership perks.Walmart expands a little-known travel perkIn June, Walmart shared that Walmart+ members can now earn double the Walmart Cash (up to 10%) on hotel stays, car rentals, and activities booked through Walmart+ Travel powered by Expedia.Additionally, Walmart+ members can earn up to 2% Walmart Cash on flights booked through the service, and blended Walmart Cash on qualifying vacation packages.Walmart Cash is the retailer’s promotional currency that can be earned through membership programs and used for future purchases both in-store and online.With the new changes, travelers looking to stretch every dollar can essentially get a percentage of their vacation budget back, which can then be used on necessary purchases ranging from gas to groceries.“The expanded travel benefit comes as more Americans are looking for smarter ways to get away this year, exploring new destinations and finding creative ways to stretch their travel budgets without sacrificing the experience,” a statement from the company said.

As travelers gear up for summer vacations, Walmart is expanding a little-known membership benefit to provide subscribers with additional savings.Getty Images

Budget-conscious shoppers are increasingly looking for valueThe added membership benefit plays a larger role in Walmart’s overall strategy of providing increased value to its customers.“When I look at the consumer, especially here in the U.S., they’re telling us they’re feeling some pressure, and they’re looking to Walmart for value,” Walmart U.S. CEO John Furner said during the company’s first-quarter fiscal year 2027 earnings call.While low prices are one way retailers can prove their value to consumers, price tags aren’t the only thing consumers are considering.“As much as 40% of consumer perceptions of a brand’s value stem from factors other than price,” a Deloitte report found. “Understanding those factors and crafting a complementary value proposition may allow brands to command a competitive advantage, even with today’s value-seeking consumer,” the report continued.Identifying and improving those other factors is more important than ever as four in 10 Americans are now classified as “value seekers” or “consumers who exhibit three or more cost-conscious, deal-driven, or convenience-sacrificing behaviors each month across grocery/retail, restaurants, leisure travel, and automotive,” Deloitte says. With the new Walmart+ travel updates, the country’s largest retailer is betting that providing savings on leisure activities will improve its value proposition in the minds of shoppers.Walmart is looking for an edgeTravel perks could also help Walmart differentiate its membership program from competing services.In recent months, Walmart and Amazon (Walmart’s largest competitor) have been making major moves to outdo each other in areas beyond price. More Walmart:Walmart launches exclusive premium beef lineWalmart’s new CEO shares his vision for the retail giantWalmart adds service to rival DoorDash, UberEatsTheir respective membership programs, Walmart+ and Amazon Prime, and the benefits that come with those programs, have been central to this showdown.By and large, the programs are incredibly similar, with nearly identical benefits and cost breakdowns, according to CNBC Select. However, Amazon Prime does not provide any consistent travel discounts. Subscribers will, however, occasionally have access to flight and vacation package savings during major events like Prime Day, or through a Prime Visa card issued by Chase Bank.Meanwhile, Walmart+’s partnership with Expedia gives members regular access to discounted travel. That distinction could become increasingly important as retailers look for new ways to attract and retain members. Although free shipping and delivery have become standard features across subscription programs, travel-related rewards remain relatively uncommon, even among the sector’s largest players.By expanding its Walmart+ Travel benefits, Walmart is giving members another reason to keep their subscriptions active while also helping them save on one of the biggest discretionary expenses in a household budget.And with millions of Americans still planning summer vacations despite rising costs, that benefit may resonate far beyond the checkout line.Related: Aldi borrows viral ‘blind box’ trend to win over shoppers