The Week's Top Stories 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.
LYFT LAGS
Lyft shares initially popped following the announcement that co-founder Logan Green is stepping down and David Risher, formerly of Amazon and Microsoft, will take over day-to-day operations. The stock then declined as the bear case against the company, which has struggled to generate profits or keep up with rival rideshare giant Uber, won the day. For more context, check out Cheddar News Senior Reporter Michelle Castillo's interview with Risher about his plans for the company.
ALIBABA SPLITS
Alibaba is splitting into six different business groups, and investors appear excited about the opportunities the new companies will generate. Shares of the Chinese company shot up 8 percent on Tuesday and is on track to finish the week up around 17 percent. Here are the names of the six new groups: Cloud Intelligence Group, Taobao Tmall Business Group, Local Services Group, Global Digital Business Group, Cainiao Smart Logistics, and Digital Media and Entertainment Group. Alibaba said each company will raise capital on its own and pursue its own initial public offerings.
VIRGIN ORBIT LAYOFFS
Virgin Orbit announced on Thursday that it's planning to lay off 85 percent of its workforce or 675 workers. The company has struggled to secure funding after a failed mission three months ago. The botched January mission would have been the first satellite launch from Europe, and its failure was seen by many as a major setback for both the company and the space industry on the continent. Virgin Orbit later admitted that the launch failed because its rocket's fuel filter disconnected.
LULULEMON RALLIES
Shares of Lululemon Athletica jumped 13 percent after the retailer reported an earnings beat for the crucial holiday quarter. The company also reported an optimistic outlook for the year, as demand for activewear remains steady. The beat gave a boost to other athleisure brands such as Nike, Adidas, and Puma.
Elon Musk may not have founded Tesla, but he has become the company, and it’s become him. Now sales are plummeting. Is he toxic for the Tesla?
About 780,000 pressure washers sold at retailers like Home Depot are being recalled across the U.S. and Canada, due to a projectile hazard that has resulted in fractures and other injuries among some consumers.
Europeans upset with Elon Musk still aren’t buying his electric cars, adding to a long losing streak for his company.
President Donald Trump has fired one of two Democratic members of the U.S. Surface Transportation Board to break a 2-2 tie ahead of the board considering the largest railroad merger ever proposed.
Ford is recalling more than 355,000 of its pickup trucks across the U.S. because of an instrument panel display failure that’s resulted in critical information, like warning lights and vehicle speed, not showing up on the dashboard.
Nvidia reported a 56% increase in second-quarter revenue and a 59% rise in net income compared to a year ago.
The Rev. Al Sharpton is set to lead a protest march on Wall Street to urge corporate America to resist the Trump administration’s campaign to roll back diversity, equity and inclusion initiatives. The New York civil rights leader will join clergy, labor and community leaders Thursday in a demonstration through Manhattan’s Financial District that’s timed with the anniversary of the Civil Rights-era March on Washington in 1963. Sharpton called DEI the “civil rights fight of our generation." He and other Black leaders have called for boycotting American retailers that scaled backed policies and programs aimed at bolstering diversity and reducing discrimination in their ranks.
President Donald Trump's administration last month awarded a $1.2 billion contract to build and operate what's expected to become the nation’s largest immigration detention complex to a tiny Virginia firm with no experience running correction facilities.
Netflix CEO Ted Sarandos claims audiences don't want to watch Netflix movies in theaters, but that seems not to be the case recently.
Chipmaker Nvidia is poised to release a quarterly report that could provide a better sense of whether the stock market has been riding an overhyped artificial intelligence bubble or is being propelled by a technological boom that’s still gathering momentum.
