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.
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Spain's government has fined Airbnb 64 million euros or $75 million for advertising unlicensed tourist rentals. The consumer rights ministry announced the fine on Monday. The ministry stated that many listings lacked proper license numbers or included incorrect information. The move is part of Spain's ongoing efforts to regulate short-term rental companies amid a housing affordability crisis especially in popular urban areas. The ministry ordered Airbnb in May to remove around 65,000 listings for similar violations. The government's consumer rights minister emphasized the impact on families struggling with housing. Airbnb said it plans to challenge the fine in court.
Roomba maker iRobot has filed for Chapter 11 bankruptcy protection, but says that it doesn’t expect any disruptions to devices as the more than 30-year-old company is taken private under a restructuring process. iRobot said that it is being acquired by Picea through a court-supervised process. Picea is the company's primary contract manufacturer. The Bedford, Massachusetts-based anticipates completing the prepackaged chapter 11 process by February.
Serbia’s prosecutor for organized crime has charged a government minister and three others with abuse of position and falsifying of documents related to a luxury real estate project linked to U.S. President Donald Trump’s son-in-law Jared Kushner. The charges came on Monday. The investigation centers on a controversy over a a bombed-out military complex in central Belgrade that was a protected cultural heritage zone but that is facing redevelopment as a luxury compound by a company linked to Kushner. The $500 million proposal to build a high-rise hotel, offices and shops at the site has met fierce opposition from experts at home and abroad. Selakovic and others allegedly illegally lifted the protection status for the site by falsifying documentation.
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A rare magnum of Dom Pérignon Vintage 1961 champagne that was specially produced for the 1981 wedding of Prince Charles and Lady Diana has failed to sell during an auction. Danish auction house Bruun Rasmussen handled the bidding Thursday. The auction's house website lists the bottle as not sold. It was expected to fetch up to around $93,000. It is one of 12 bottles made to celebrate the royal wedding. Little was revealed about the seller. The auction house says the bids did not receive the desired minimum price.
