From Wall Street to Silicon Valley, these are the top stories that moved markets and had investors, business leaders, and entrepreneurs talking this week on Cheddar.
KOHL'S UNDER PRESSURE
Shares of Kohl's plunged earlier this week, but then bounced back on the news that no less than 20 potential suitors were interested in buying the struggling department store chain. Wall Street has put heavy pressure on the retailer to either sell off its online business or take the company private, as well as elect new members to its board. CEO Michelle Gass, however, maintained that the company is making strides on its own terms as it executes a multi-year turnaround plan, which includes growing its Sephora business to more than $2 billion in annual sales
AMAZON SPLITS STOCK
Amazon's stock is about to get a lot less expensive, and shares are rallying on the news. The stock — currently priced at an eye-watering $2,910 per share — jumped 5 percent on Thursday in what's looking like the company's second-best day of the year. The pop came just days after Amazon announced a 20-to-1 stock split that will reduce the price of shares by 95 percent. While the split doesn't change the company's fundamentals, it does open the door to new investors, and it could make Amazon eligible for inclusion in the Dow Jones Industrial index.
BED, BATH & BEYOND BUMP
Bed, Bath & Beyond got some of that meme-stock shine this week after GameStop Chairman Ryan Cohen revealed holding nearly a 10 percent stake in the company. Cohen, who founded online pet retailer Chewy, has a reputation as a turnaround artist for his work in revitalizing GameStop. Now he's making the leap from video games to home goods. In a letter to the board, Cohen outlined a plan for Bed, Bath & Beyond to narrow its focus and potentially sell off its Buybuy Baby brand. He also said the company would be better off owned by a private equity firm.
RIVIAN HITS THE SKIDS
Rivian Automotive's stock sunk 7.5 percent on Friday after the release of a fourth quarter earnings report that showed a net loss of $2.5 billion and a dimmer outlook for 2022 due to supply chain issues and material costs. The electric truck-maker is stacking up massive cost overruns as it readies to make its first orders this year. Investors also weren't happy with the fact that Rivian earlier this month said it was raising prices 20 percent, including for customers who had already put down deposits on pre-orders. The company later reversed the price increase for pre-orders and issued an apology, but the market remained uneasy about the automaker.
GOOGLE ACQUISITION
You've probably never heard of cybersecurity firm Mandiant, but Google parent company Alphabet sure has. Shares of Mandiant shot up 16 percent on Monday after Alphabet announced plans to acquire the company in a bid to expand its cloud computing business. Alphabet currently trails behind Microsoft and Amazon Web Services in the rapidly-growing cloud computing business. The hope is that bolstering its cybersecurity cred will help Alphabet gain ground on its rivals and provide a more complete suite of services to cloud customers.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
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