EV Startup Canoo Files For Bankruptcy After NASA, USPS, Walmart Partnerships Bear Little Fruit
Canoo Inc. Bankruptcy Filing: Canoo Inc. has filed for Chapter 7 bankruptcy, initiating the liquidation of its assets due to failure in securing necessary financial support, despite partnerships with notable organizations like NASA and Walmart.
Impact on Operations: The company will cease operations immediately, overseen by a Bankruptcy Trustee, marking the end of its journey after a significant decline in stock value, losing over 98% in the past year.
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- Strong Revenue Expectations: Walmart is projected to achieve fourth-quarter revenue of $188.43 billion, reflecting a 10.2% year-over-year increase, indicating the company's resilience in maintaining growth amid a slowdown in consumer spending, particularly as most sales derive from groceries and essentials.
- New CEO Appointment: John Furner succeeded Doug McMillon as CEO on February 1, and the market has high expectations for his leadership, especially in driving digital and AI-powered growth initiatives.
- Impressive Market Performance: Shortly after the new CEO took office, Walmart's market capitalization surpassed $1 trillion for the first time, demonstrating investor confidence in the company's future, particularly in its digital transformation and e-commerce expansion efforts.
- Analysts Optimistic About Future: Rothschild & Co Redburn raised Walmart's price target from $110 to $150, forecasting a 14% annual earnings growth through 2028, reflecting strong confidence in the company's digital opportunities and growth levers.
- Market Performance: The S&P 500 is attempting its first three-session win streak since late January, with solid gains indicating investor confidence in economic recovery, particularly in energy and technology sectors.
- Economic Data Surprises: New orders for manufactured durable goods rose 0.9% in December, surpassing the expected 0.3%, while January industrial production increased by 0.7%, exceeding forecasts of 0.4%, signaling accelerating economic activity.
- Alphabet AI Innovation: Alphabet's launch of the Lyria 3 generative music model allows users to create 30-second tracks via the Gemini app, enhancing the quality of YouTube Shorts soundtracks and potentially attracting more creators to the platform.
- Earnings Season Approaches: Companies like DoorDash and Carvana will report quarterly earnings after Wednesday's close, while Walmart and Quanta Services will announce results before Thursday's open, with the market closely watching the impact of these reports on stock performance.
- Market Situation: As of February 13, 2026, software and AI stocks are facing sell-offs, while value stocks are trading at a high price-to-earnings ratio of 50, indicating a divergence in market sentiment towards different stock types.
- Investor Sentiment: The decline in software and AI stocks reflects investor concerns over high-valuation tech stocks, potentially leading to a shift in capital towards more value-oriented investments, thereby impacting overall market dynamics.
- Value Stock Performance: Despite economic uncertainties, value stocks continue to perform strongly with a P/E ratio of 50, indicating sustained market confidence and demand for these equities.
- Future Outlook: As the market adopts a cautious stance towards tech stocks, investors may reassess their portfolios, shifting towards more stable value stocks to mitigate potential market volatility.
- Research Paper Controversy: Hassett criticized the New York Federal Reserve's research paper, which concluded that 90% of Trump's tariff costs are borne by U.S. consumers and companies rather than foreign exporters, claiming the analysis is misleading and not suitable for a first-semester economics class.
- Economic Data Rebuttal: Citing January's CPI at 2.4% and an average real wage increase of $1,400 last year, Hassett argued that consumers have actually benefited from the tariff policy, questioning the researchers' narrow focus on prices while ignoring wage growth and onshoring advantages.
- Tariff Impact Assessment: The Tax Foundation estimated that tariffs will cost the average U.S. household $1,000 by 2025, with mainstream economic consensus supporting the view that tariff costs are predominantly borne by domestic buyers, intensifying the controversy surrounding Trump's economic policies.
- Market Reaction and Predictions: Prediction markets indicate only a 26% chance that the Supreme Court will uphold Trump's tariffs; a ruling against them could trigger refunds exceeding $130 billion and reshape U.S. trade policy, with traders closely watching Walmart's earnings for any tariff-related commentary.
- Revenue Growth Expectations: Analysts anticipate Walmart's Q4 revenue to reach $189.18 billion, up from $180.55 billion last year, indicating the company's strong performance in maintaining market share and reinforcing its leadership in the retail sector.
- Earnings Per Share Increase: Expected Q4 earnings per share of 73 cents, up from 66 cents last year, reflect Walmart's consistent ability to exceed analyst expectations in seven of the last eight quarters, bolstering investor confidence.
- Market Reaction Analysis: Market experts suggest that Walmart's earnings report could significantly impact the market, especially with CEO John Furner's debut, as expectations remain high for continued market share gains and margin expansion in core business areas.
- Stock Price Volatility Expectations: Despite a 14.1% increase in Walmart's stock price in 2026, analysts caution that failure to exceed market expectations in the upcoming report could lead to a price pullback, prompting investors to closely monitor the report's potential effects on the broader market.
Walmart's Influence on Retail Sector: Walmart Inc. serves as a key indicator for the retail sector, with its earnings reports significantly impacting market sentiment and shaping consumer spending trends amidst inflation and shifting priorities.
Dollar Tree's Growth: Dollar Tree has shown impressive performance, with a 77% increase in stock value over the past year, focusing on budget-conscious consumers while also expanding into higher-income markets.
Ross Stores' Positive Performance: Ross Stores has experienced a nearly 23% increase in stock value recently, driven by strong earnings reports and solid same-store sales growth, indicating a bullish outlook for the company.
Valuation Concerns in Retail Stocks: There are growing concerns about the overvaluation of retail stocks, including Ross Stores and TJX Companies, as analysts raise their price targets, suggesting potential challenges in maintaining revenue growth in the upcoming quarters.











