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JPMorgan Expands as Baby Retailer Carter's Struggles Amid Falling Birthrates
6 Aug
Summary
- JPMorgan's valuation lower than S&P 500, poised for outperformance
- Carter's faces declining birthrates and macroeconomic pressures
- GM's EV sales surge, but tariffs and costs weigh on outlook

As of August 6th, 2025, JPMorgan Chase is aggressively expanding its global banking presence, with plans to open more than 500 new branches over the next two years. This move is expected to solidify the company's position as the largest banking network, allowing it to boost market share and benefit from cross-selling and network effects.
In contrast, Atlanta-based Carter's Inc., the largest seller of branded apparel and baby-related products, is facing significant challenges. The US birthrate has been declining consistently for the past seven decades, and this trend has only accelerated in recent years due to economic conditions, social, and cultural shifts, as well as widespread access to contraception. This long-term headwind poses a troubling outlook for Carter's, which is heavily focused on the baby segment.
Additionally, Carter's has been grappling with a challenging macroeconomic environment, including inflation, elevated interest rates, and weakening consumer confidence, which have impacted its top-line performance. The company has also been hit by rising tariffs, particularly on products manufactured in Asia, adding to its cost structures.
Meanwhile, General Motors has seen a surge in its electric vehicle (EV) sales, with more than 19,000 units sold last month, a 115% year-over-year increase. The US legacy automaker is making steady progress in its electrification journey, with a robust portfolio of 13 EV models across its Chevrolet, GMC, and Cadillac brands. However, the company faces near-term headwinds, including pressure on fleet pricing due to rising competition and higher warranty costs related to early EV software issues.