BUSINESS

As economic uncertainty keeps on shaping consumer patterns, one category is proving remarkably resilient: pet spending. New data from CivicScience suggests that Americans are not only holding steady in their commitment to their pets — they’re increasingly willing to spend more on them.According to the survey, pet owners report a net spending intent of +28%, with 38% planning to increase spending on pet-related expenses such as food, toys and veterinary care over the next year. In contrast, only 10% say they expect to cut back. The majority (53%) anticipate keeping their spending roughly the same, underscoring the stability of the pet care market even as households reassess budgets elsewhere. This resilience reflects a wider trend: For many Americans, pets aren’t a discretionary expense; they are essential members of the household.Read:More personal finance contentCats vs. DogsBoth dog and cat owners are adding to the rise in pet spending, but the data displays a notable divide between the two groups. Cat owners are leading the charge, with a slightly higher likelihood of increasing their budgets compared to dog owners. Specifically, 14% of cat owners report plans for a significant increase in spending, compared to 12% of dog owners, according to CivicScience.The gap widens when we factor in those planning slight spending increases. Cat owners are four percentage points ahead, overall, in their intention to spend more.This difference may reflect developing perceptions of cat ownership, particularly as more Americans embrace cats as low maintenance yet emotionally rewarding companions. It may also signal growing investment in premium cat products, from customized diets to enrichment toys.Still, dog owners continue doing their part to keep the pet economy strong. With 56% expecting to maintain current spending levels and a sizable portion planning increases, the segment continues to be a powerful force in the market.

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New Pet Ownership Pipeline Remains StrongSpending growth is also being fueled by continued interest in pet ownership. Approximately 17% of U.S. adults say they plan to get a dog in the next 12 months, while 11% are considering adding a cat to their household.Among current pet owners, the data shows strong “species loyalty.” Dog owners are far more likely to plan for another dog (21%) than to get a cat (11%), while cat owners show a similar preference for staying within their existing category.This loyalty suggests that once consumers enter a particular segment of the pet market, they are likely to remain there, creating sustained demand for species-specific products and services.Remote Work Keeps Shaping Pet TrendsOne of the most significant predictors of future pet ownership is work location. The shift toward remote and hybrid work arrangements — accelerated during the pandemic — still influences how and why Americans acquire pets.Individuals who work remotely, especially those who have recently transitioned to working from home, are significantly more likely than the average American to plan on getting a pet. Among those who transitioned to remote work, 36% say they are considering getting a dog, and an equal share are thinking about adopting a cat — well above national averages.By contrast, those returning to the office show different preferences. This group is less likely to take on the responsibilities of a dog or cat and, instead, shows more interest in lower-maintenance pets, such as fish, reptiles, or small mammals. These patterns highlight how life practices, particularly time spent at home, directly shape the pet economy. Owning a dog or cat is more feasible for those who spend more time at home.  And that time spent with these pets may further deepen the human-animal bond, additionally reinforcing spending behavior.Emotional Benefits Drive Financial CommitmentAt the heart of the pet spending boom is a powerful emotional connection. The data makes clear that pets play a significant role in their owners’ well-being, particularly when it comes to mental health. More than two-thirds (66%) of pet owners say their pets have had a positive impact on their mental health, citing reduced stress and increased companionship. Only a small minority (11%) report any negative impact.The emotional benefits of pet ownership appears to be a key driver of sustained — and even increased — spending. In an era distinguished by economic and social stressors, pets offer a sense of stability and comfort that many owners are unwilling to compromise. The value of these relationships often comes to the forefront when someone loses a treasured family pet.“Pets give us unconditional love,” said Marianne Matzo, PhD. “The death of a pet can hurt as much or more than the death of a family member.”Physical Health Benefits Vary by Pet TypeWhile mental health benefits are widely shared across pet owners, physical health outcomes vary more significantly depending on the type of pet. Overall, about 51% of pet owners report that their pets have had a positive impact on their physical health. However, dog owners are notably more likely to report such benefits than cat owners.Among dog owners, 57% say their pets have improved their physical health — likely due to regular walking and increased activity levels. By comparison, 49% of cat owners report similar benefits, an eight-percentage-point gap. This distinction reinforces the idea that different types of pets fulfill different roles in their owners’ lives — some emotional, others physical. These roles can influence spending patterns. Dog owners, for instance, may invest more in outdoor gear, training, and health-related services, while cat owners may focus on comfort and enrichment products.A Recession-Resistant CategoryTaken together, the findings point to a pet industry that is not only stable but growing — prompted by a combination of emotional attachment, lifestyle changes, and ongoing interest in pet ownership. Even as consumers tighten spending in other areas, pets continue to be a priority. Whether it’s premium food, veterinary care, or toys designed to improve quality of life, owners continue to invest in their animals at high rates.The result is a category that appears increasingly insulated from wider economic swings. As one trend becomes clear, it is this: in American households, pets are no longer optional, they are family. And for many, that means their care is one expense that won’t be cut.Related: What’s new this tax year for 50+ adults?

Micron Technology (MU) just completed one of the best quarters in its history, with most investors repeating “buy first, ask questions later” like a mantra. But a blunt warning from CEO Sanjay Mehrotra may be the detail that matters most for Wall Street.The memory-chip giant reported blockbuster fiscal second-quarter earnings, as revenue surged to $23.86 billion and adjusted earnings per share reached $12.20, handily racing ahead of expectations.Micron also issued strong guidance for the current quarter, which means that demand tied to the artificial intelligence(AI) boom remains extremely strong.But investors were hit with some extraordinary remarks post the record-setting earnings season. Micron can only provide a portion of what its most important customers need in the near future, Mehrotra told CNBC on March 19.For a company at the center of the AI infrastructure trade, these are stunning remarks. It suggests the AI memory shortage is still severe, even after Micron’s excellent results.That helps explain why Micron stock is slipping even after delivering an amazing report. The quarter was great, but the market is now asking a harder question: How long can Micron keep making money from this huge supply shortage, and what will happen when new capacity finally comes online?Micron earnings show AI demand is still outpacing supplyThe biggest takeaway from Micron earnings is not solely that the company helped beat earnings estimates. It is that demand for AI memory is still majorly outrunning supply.That matters because Micron plays a critical role in the AI chip ecosystem. While investors tend to focus on Nvidia, advanced memory chips are the lifeblood of the systems powering the next wave of AI infrastructure. If Micron still can’t meet customer demand, it means the AI trade is still going strong.The company’s latest results underscored that strength. Micron said it posted record quarterly revenue, record gross margin, record earnings per share and record free cash flow. That is exactly the kind of outsized performance that supports Micron’s position as one of the biggest winners in the semiconductor rally tied to AI.Still, strong fundamentals don’t always mean that the stock price will go up.More AI Stocks:Morgan Stanley sets jaw-dropping Micron price target after eventBank of America updates Palantir stock forecast after private meetingMorgan Stanley drops eye-popping Broadcom price targetInvestors are looking beyond the quarter and focusing on what is going to happen next. Micron is racing to add capacity, per Reuters, which will lead to a massive spending increase. In fiscal 2026, the company plans to spend more than $25 billion on capital projects. This shows that management is trying to close the gap between supply and demand before competitors do the same.That is where the complication starts for Micron investors. Today’s shortage is helping drive pricing power and profitability. However, tomorrow’s capacity expansion will cool the same market conditions fueling the rally.

Micron investors get a rude surprise after blockbuster earnings.Green/Bloomberg via Getty Images

Micron stock faces a new Wall Street problemFor now, Micron’s business is on solid ground. But the stock market is already starting to look past the headline numbers.That is the real tension we are witnessing in the markets.Related: Nvidia CEO makes bombshell call on AI’s next big thingWhen a company posts results this strong, investors will react to the stock price right now and then start to price in the future. In Micron’s case, that means asking whether today’s AI-driven memory shortage is the start of a longer supercycle or the high point of a very profitable moment.That helps explain why Micron stock did not rise higher on the basis of the earnings beat alone. Some investors seem to be selling off their stocks after a big run, while others are wondering how long the current high demand for high-bandwidth memory and low supply of DRAM will last.Make no mistake: Micron is still telling a bullish story. Demand is growing at a decent clip. Key customers still want far more product than it can provide. The AI buildout is still creating bottlenecks across critical parts of the semiconductor market.But Wall Street no longer asks if Micron had a good quarter; instead, it asks whether Micron is operating at something close to peak conditions.Key Micron takeawaysMicron revenuehit $23.86 billion in fiscal Q2.Adjusted earnings per share came in at $12.20.Micron guided to about $33.5 billion in Q3 revenue.CEO Sanjay Mehrotra said key customers are getting only 50% to two-thirds of needed supply.Micron is expected to spend more than $25 billion on capital expenditures in fiscal 2026.The company remains one of the clearest AI memory winners in the market.For investors, the message is simple enough. Micron is still riding a powerful AI boom, but that boom is creating critical chokepoints.The company just showed that demand for memory chips is moving along at a breakneck pace. At the same time, it reminded Wall Street that even great numbers come at a price. In this case, the catch is that Micron still cannot fully meet customer demand, and fixing the issue will require a massive capital inflow.That makes Micron stock one of the more fascinating names in the AI trade right now.And that might be the biggest surprise of all: Micron just had a huge win, but investors are already worried about what’s next.Related: Nvidia bull drops shocking take on upside

Shares of Rivian (RIVN) and Uber (UBER) have both been under pressure in recent months, as investors weigh profitability concerns and slowing growth expectations.Rivian stock has dropped more than 33% from its December 52-week high and is down about 24.3% year to date.Uber stock is down roughly 9% this year and has fallen about 22% since its Nov. 4 earnings report. Both stocks are underperforming the S&P 500, which has slipped about 5% year to date.That backdrop makes their latest move especially important.Uber, Rivian robotaxi deal could reshape growth outlookOn March 19, Rivian and Uber announced a major robotaxi partnership that could reshape both companies’ growth stories.Uber plans to invest up to $1.25 billion in Rivian and deploy as many as 50,000 fully autonomous R2 vehicles on its platform.The vehicles are expected to launch in San Francisco and Miami in 2028, with expansion to as many as 25 cities across North America and Europe by 2031.“We’re big believers in Rivian’s approach, designing the vehicle, compute platform, and software stack together, while maintaining end-to-end control of scaled manufacturing and supply in the U.S.,” Uber CEO Dara Khosrowshahisaid in a press release.The partnership gives Rivian a large-scale commercial path for its autonomous driving technology, backed by a well-capitalized partner.And for Uber, it brings the possibility that robotaxis could become a key upside driver.

Uber’s strategy is likely to become a platform for autonomous vehicles rather than owning them directly.Getty Images

Rivian earnings highlight ongoing profitability challengesThe news comes shortly after Rivian reported quarterly results that showed improving performance but ongoing losses.For the fourth quarter, Rivian reported an adjusted loss of 54 cents per share, narrower than the 68-cent loss expected. Revenue reached $1.29 billion, beating estimates of $1.26 billion, CNBC reported.Related: Bank of America has a stark message for investors buying the dipFor the full year 2025, revenue rose 8% to about $5.4 billion. The company also reported its first annual gross profit of $144 million.However, that profit was driven largely by Rivian’s software and services segment, including its joint venture with Volkswagen, which helped offset $432 million in losses in its automotive business.The company is expected to remain unprofitable as it ramps production of its lower-cost R2 vehicle.Alongside the Uber deal, Rivian said it no longer expects adjusted EBITDA to turn positive in 2027, citing increased research and development spending tied to its autonomous driving roadmap, according to an SEC filing.Rivian now expects an adjusted EBITDA loss of between $2.1 billion and $1.8 billion in 2026.Morgan Stanley: Uber stock upside may not be priced inMorgan Stanley sees the partnership as a positive development for Rivian and a potentially bigger opportunity for Uber stock.For Rivian, the firm said the deal validates its autonomous driving platform and provides additional capital support.Related: Morgan Stanley has a stark message for investors in Palantir stocks“Similar to Rivian’s joint venture with Volkswagen, the deal brings in funding from a well-capitalized partner investing heavily in autonomous driving,” the firm said.For Uber, Morgan Stanley said the deal “further advances its strategy of enabling multiple autonomous vehicle players within a rapidly developing AV ecosystem.”Uber also announced partnerships with Amazon’s Zoox, Motional, Wayve, and Nvidia, reflecting its potential strategy to become a platform for autonomous vehicles rather than owning them directly.That strategy may not yet be reflected in Uber’s valuation.“With Uber’s U.S. rides business arguably trading at a low single digit EBITDA multiple, success in autonomy is not currently reflected in the valuation and could become a meaningful driver of multiple expansion,” Morgan Stanley said.Related: J.P. Morgan pushes back on Fed’s 2026 rate-cut forecast