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.
Bambu Ventures's Kyle Pretsch dives into Lemonaid’s $10M buyout, down from 23andMe’s $400M price tag, and what’s next after Chrome Co.’s dramatic pivot.
Former Cisco Systems CEO John Chambers learned all about technology’s volatile highs and lows as a veteran of the internet’s early boom days during the late 1990s and the ensuing meltdown that followed the mania. And now he is seeing potential signs of the cycle repeating with another transformative technology in artificial intelligence. Chambers is trying take some of the lessons he learned while riding a wave that turned Cisco into the world's most valuable company in 2000 before a crash hammered its stock price and apply them as an investor in AI startups. He recently discussed AI's promise and perils during an interview with The Associated Press.
Grove Collaborative’s CEO shares how the company is reinventing everyday goods with sustainability at the core and working toward a plastic-free future.
Atlanta Mayor Andre Dickens shares plans for affordable housing, community-led growth, and why private and public grocery stores could be key to food equity.
Tesla reported a surprise increase in sales in the third quarter as the electric car maker likely benefited from a rush by consumers to take advantage of a $7,500 credit before it expired on Sept. 30. The company reported Thursday that sales in the three months through September rose 7% compared to the same period a year ago. The gain follows two quarters of steep declines as people turned off by CEO Elon Musk’s foray into right-wing politics avoided buying his company’s cars and even protested at some dealerships. Sales rose to 497,099 vehicles, compared with 462,890 in the same period last year.
Tom’s Guide Editor-in-Chief Mark Spoonauer breaks down Apple & Amazon's latest product drops—what's hot, what's hype, and what really matters for users.
