Big Business This Week is a guided tour through the biggest market stories of the week, from winning stocks to brutal dips to the facts and forecasts generating buzz on Wall Street.
RIVIAN'S RAISE
The electric vehicle manufacturer spooked investors this week by issuing a $1.5 billion bond to raise money – after raising $1.3 billion earlier this year. However, the company insists cash is not an issue; it is trying to get ahead of borrowing that could get costlier in the future. Rivian announced this week that it is on track to begin construction on a Georgia factory, which comes in addition to work that is expected to begin on sites in Colorado, Texas and California in the next few months. Rivian stock dropped almost 13 percent this week.
COSTCO CEO
Costco CEO W. Craig Jelinek is stepping down, but his replacement is already well-versed on the warehouse store. President Ron Vachris, a 40-year veteran of Costco, will take over in January. Jelinek will stay on until April to help with the transition. No word on the fate of the $1.50 hot dog and soda combo deal that Jelinek has held onto for decades. The stock dropped slightly on the news of his departure, down almost 3 percent for the week.
NOKIA CUTS
Wireless network giant Nokia is about to cut 14,000 jobs globally in the face of a weak market and falling profits. The company aims to cut its costs nearly in half by the end of 2026. It hopes the development of cloud computing and artificial intelligence becomes a boon to its own business, as tech companies will continue to need the networks it provides. The stock was down nearly 11 percent this week.
WYNDHAM STAYS
Wyndham Hotels & Resorts could be up for sale, but not for the $8 billion offered by Choice Hotels, the parent company of brands like Radisson, Quality Inn and Park Plaza. Apparently, the companies had been negotiating a potential deal out of the public eye for months, but when talks broke down Choice announced its bid. Wyndham's board unanimously turned it down and said it was "underwhelming, highly conditional and subject to significant business, regulatory and execution risk." Choice Hotels CEO indicated more negotiations may be possible. Wyndham stockholders were pleased with the decision, sending the stock up 8 percent this week, while Choice Hotels investors pulled back with the stock dropping 9 percent.
RITE AID BANKRUPTCY
The week started with bad news from pharmacy chain Rite Aid. It filed for Chapter 11 bankruptcy protection as it tries to work its way out of a mess of hundreds of millions of dollars of fiscal losses and opioid lawsuit settlements. It says it has already secured $3.45 billion in financing to get through restructuring, but it'll close more than 150 stores in the process - about 7 percent of its total footprint. Rite Aid stock closed the week up a whopping 47 percent, although that only brought the stock price up to 26 cents per share.
The New York Times and President Donald Trump are fighting again. The news outlet said Wednesday it won't be deterred by Trump's “false and inflammatory language” from writing about the 79-year-old president's health. The Times has done a handful of stories on that topic recently, including an opinion column that said Trump is “starting to give President Joe Biden vibes.” In a Truth Social post, Trump said it might be treasonous for outlets like the Times to do “FAKE” reports about his health and "we should do something about it.” The Republican president already has a pending lawsuit against the newspaper for its past reports on his finances.
OpenAI has appointed Slack CEO Denise Dresser as its first chief of revenue. Dresser will oversee global revenue strategy and help businesses integrate AI into daily operations. OpenAI CEO Sam Altman recently emphasized improving ChatGPT, which now has over 800 million weekly users. Despite its success, OpenAI faces competition from companies like Google and concerns about profitability. The company earns money from premium ChatGPT subscriptions but hasn't ventured into advertising. Altman had recently announced delays in developing new products like AI agents and a personal assistant.
President Donald Trump says he will allow Nvidia to sell its H200 computer chip used in the development of artificial intelligence to “approved customers” in China. Trump said Monday on his social media site that he had informed China’s leader Xi Jinping and “President Xi responded positively!” There had been concerns about allowing advanced computer chips into China as it could help them to compete against the U.S. in building out AI capabilities. But there has also been a desire to develop the AI ecosystem with American companies such as chipmaker Nvidia.
U.S. sports betting is booming as NFL and college football fuel massive activity. BetMGM CEO Adam Greenblatt breaks down trends, growth, and what’s next.
President Donald Trump says a deal struck by Netflix last week to buy Warner Bros. Discovery “could be a problem” because of the size of the combined market share. The Republican president says he will be involved in the decision about whether federal regulators should approve the deal. Trump commented Sunday when he was asked about the deal as he walked the red carpet at the Kennedy Center Honors. The $72 billion deal would bring together two of the biggest players in television and film and potentially reshape the entertainment industry.
Disney's changes to a program for disabled visitors are facing challenges in federal court and through a shareholder proposal. The Disability Access Service program, which allows disabled visitors to skip long lines, was overhauled last year. Disney now mostly limits the program to those with developmental disabilities like autism who have difficulty waiting in lines. The changes have sparked criticism from some disability advocates. A shareholder proposal submitted by disability advocates calls for an independent review of Disney's disability policies. Disney plans to block this proposal, claiming it's misleading. It's the latest struggle by Disney to accommodate disabled visitors while stopping past abuses by some theme park guests.
With a merger this big, creators, studios, and theaters all face uncertain futures. Here’s what experts are worried about and what good could come from it.
With disengagement rising and hybrid work shifting, 'Everybody Matters' author Bob Chapman explains why treating people well could define the future of work.
We sat down with Ali Furman, U.S. Consumer Markets Industry Leader at consulting firm PwC to ask what trends she garnered from the initial data this year.
