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.
STARBUCKS' VENTI EARNINGS
The granddaddy of coffee chains reported record sales last quarter thanks to its annual launch of beloved Pumpkin Spice Lattes in August (really). Fun fact: PSL has been a seasonal stable at Starbucks for 20 years. The chain says it has seen young customers, especially, spending extra on things like gourmet coffee, rather than durable goods. While the company is keeping an eye on possible headwinds if there is a broader economic turndown, it says it is in a better position to weather the storm than in the past thanks to investments in its rewards program. The stock ended the week up 10 percent.
MAERSK TROUBLED WATERS
Shipping giant Maersk announced Friday that it will be slashing 10,000 jobs as the demand for cargo shipping drops off and, with it, the lowering of prices back to pre-pandemic norms. This time last year, the world's largest shipping company was reporting over $9 billion in profits; this year it was $691 million. With the news went the stock price, which dove by 15 percent on Friday alone.
PARAMOUNT POUNCES
Paramount announced in its earnings report that strength in streaming helped the media company balance hits from the writers and actors strikes. It recently combined Paramount+ and Showtime streaming options, which boosted and streamlined its subscriber base. Still, the platform isn't profitable yet. Investors rallied on the news with two days of double-digit growth. It closed the week up 28 percent.
UBER & LYFT PICK-UPS
Two of the main names in ridesharing saw their stocks soar on Thursday after they agreed to pay $328 million in a dispute over taxes and fees they improperly forced drivers to pay. Now that the drawn-out legal battle is over, investors have begun pouring in; Uber stock even got an upgrade from KeyBanc. Uber and Lyft stock both ended the week up 13 percent.
BEYOND MEAT LAYOFFS
Plant-based meat purveyor Beyond Meat is cutting 19 percent of its workforce - about 65 employees - on lagging demand. The company is also considering cutting some products, changing prices and adjusting manufacturing overseas. Despite the gloomy news, investors were impressed by the plan - the stock rose 13 percent by the end of the week.
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.
