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Walmart’s Stock Split, Elon Musk’s Billion-Dollar Package Revoked, and More

Fernanda T
Latest News
January 31 2024 1:28AM

Walmart (NYSE:WMT)Walmart announced a 3-for-1 stock split as part of its review of trading levels and spread. This will increase the shares in circulation to approximately 8.1 billion, with distribution after the close on February 23.

Tesla (NASDAQ:TSLA) – Elon Musk’s $55 billion compensation package at Tesla Inc. was voided by a Delaware judge after a shareholder deemed it excessive. This decision could significantly impact Musk’s wealth and the future of his companies if upheld after a possible appeal. Musk, who topped Bloomberg’s billionaires list, now faces uncertainties regarding his net worth. The case involved allegations of inadequate disclosure and conflicts of interest in formulating the executive compensation plan. The decision may lead Tesla‘s board to create a new compensation proposal. Musk responded quickly, suggesting incorporation in Nevada or Texas to allow shareholders to decide on matters. The future of Musk’s fortune, valued at about $51.1 billion, is now in doubt, potentially making him the world’s third richest man. Tesla shares fell about 2.8% in Wednesday’s pre-market.

Microsoft (NASDAQ:MSFT)Microsoft exceeded market expectations with adjusted earnings of $2.93 per share and total revenue of $62 billion in the last quarter of 2023. The Intelligent Cloud unit’s revenue, which includes Azure, grew by 20%, while Azure sales increased by 30%. Operating expenses for the current quarter are projected to be $15.8 billion to $15.9 billion, up from the previous quarter. Sales in the More Personal Computing segment grew by 19%, driven by the acquisition of Activision Blizzard.

Alphabet (NASDAQ:GOOGL)Alphabet reported a fourth-quarter profit of $20.7 billion, while its advertising revenue rose to $65.5 billion, although it fell short of the average analysts’ expectations of $66.1 billion. Alphabet‘s capital expenditures increased by 45%, to $11 billion. Google Cloud’s revenue in the last quarter was $9.2 billion, exceeding expectations of $8.9 billion. Cloud revenue growth was 25.7%, slower than the 32% growth in the quarter of the previous year. CEO Sundar Pichai highlighted AI progress across all of Alphabet‘s businesses.

Apple (NASDAQ:AAPL) – Epic Games claimed that Apple is not fully complying with a court order that required opening the App Store to allow external payment options. Apple agreed to include external links but still demands up to a 27% commission on off-store purchases. Epic is disputing Apple‘s compliance with the previously ordered changes. Apple is seeking that Epic reimburse $73 million in legal expenses for developer contract breach.

Match Group (NASDAQ:MTCH)Match Group, the parent company of Tinder, forecasted first-quarter revenue below Wall Street expectations due to dating app users’ spending cuts amid economic uncertainty. The company also announced a $1 billion share buyback plan. Competition with Bumble and hiring a new CEO for Tinder are part of the efforts to improve performance. Revenue in the fourth quarter grew by 10% to $866.2 million, exceeding estimates. Earnings per share were 81 cents.

Advanced Micro Devices (NASDAQ:AMD)AMD raised its 2024 forecast for AI processors by $1.5 billion, reaching a total of $3.5 billion. Fourth-quarter revenue was $6.17 billion, slightly above analysts’ estimates. However, projections for the first quarter of 2024 fell below Wall Street expectations, with revenues of $5.4 billion, and the company did not issue an earnings per share projection. AMD shares rose about 140% last year.

PayPal (NASDAQ:PYPL)PayPal plans to reduce its global workforce by about 2,500 jobs, representing 9% of employees, as announced by CEO Alex Chriss. This move aims to streamline the company and boost profitable growth.

Electronic Arts (NASDAQ:EA)Electronic Arts missed estimates for quarterly bookings, with lower spending and strong competition affecting demand for its game titles. The company reported bookings of $2.37 billion for the quarter, below analysts’ expectations of $2.39 billion. However, it raised its annual earnings forecast to $4.21 to $4.68 per share.

Chevron (NYSE:CVX)Chevron is diverting CPC Blend oil from Kazakhstan to Asia via the Cape of Good Hope, avoiding the Red Sea due to Houthi attacks in Yemen, which increased the risk of maritime transport in the region.

Enbridge (NYSE:ENB)Enbridge, a Canada-based oil pipeline operator, plans to reduce its workforce by 650 jobs, or 5%, as part of a cost-cutting effort. The company operates North America’s largest pipeline network and the continent’s largest natural gas utility. The cuts aim to improve competitiveness and address economic and geopolitical challenges. Enbridge announced the acquisition of three U.S. gas utilities companies last September, raising concerns about its debt load.

Boeing (NYSE:BA)Boeing withdrew a safety exemption request after an incident on a 737 MAX 9. United Airlines (NYSE:UAL) highlighted post-pandemic aviation experience loss, possibly contributing to Boeing‘s recent issues. VP of Finance, Gerry Laderman, mentioned supply chain challenges and the lack of experienced employees as factors. Laderman refrained from commenting on United‘s negotiations with Airbus over A321neos aircraft due to his imminent retirement. Southwest Airlines (NYSE:LUV) is willing to wait until 2026 or 2027 to receive the Boeing 737 MAX 7, its largest customer. The company swapped orders for the MAX 8 to avoid delays but will continue to wait for the MAX 7’s availability.

JetBlue Airways (NASDAQ:JBLU), Spirit Airlines (NYSE:SAVE)JetBlue Airways and Spirit Airlines are seeking an expedited appeal to reverse a decision that blocked their $3.8 billion merger, claiming that the benefits to the flying public were overlooked. Without expediency, the deal’s closing date may expire. JetBlue is also considering cost cuts due to a drop in revenues and higher costs in the first quarter.

General Motors (NYSE:GM)General Motors (GM) reported a net profit of $2.1 billion in the fourth quarter, with revenues of $43 billion. Adjusted pre-tax profit fell 54%, to $1.8 billion. GM plans to cut costs, reduce spending in its autonomous vehicles unit Cruise by $1 billion, and return $12 billion to shareholders through share buybacks and dividend increases. The company expects electric vehicle sales to account for 10% of the U.S. market in 2024.

Stellantis (NYSE:STLA)Stellantis‘s Peugeot brand plans to incorporate ChatGPT into its vehicles to enhance the voice assistant, following the trend of brands like Mercedes-Benz and Volkswagen. The pilot version of the service will be launched in five countries and become standard equipment later this year. Additionally, Peugeot will offer an eight-year warranty for the e-3008 model, encouraging the adoption of electric vehicles.

Paramount Global (NASDAQ:PARA) – Media entrepreneur Byron Allen announced a proposal of $30 billion for control of Paramount Global, including debt and equity. Bloomberg News, which initially reported the news, stated that he offered $14.3 billion to acquire all outstanding shares of Paramount Global.

Vodafone Group (NASDAQ:VOD)Iliad SA‘s revised offer for a business combination with Vodafone Group Plc has been rejected, ending its efforts in the competitive Italian telecommunications market. Vodafone shares fell 4.4% in Wednesday’s pre-market.

Novo Nordisk (NYSE:NVO)Novo Nordisk projected an increase in sales of the Wegovy drug, with sales of $1.39 billion in the last quarter. The company expects sales growth of 16% to 25% and an increase in operating profit of 19% to 28% this year. Fourth-quarter sales rose 37%, reaching 65.9 billion crowns, with earnings before interest and taxes (EBIT) of 26.8 billion crowns. Novo Nordisk is valued at over $487 billion, making it Europe’s most valuable listed company.

GSK (NYSE:GSK)GSK exceeded market estimates for the fourth quarter, with earnings of 28.9 pence per share and sales of $10.20 billion. The optimistic forecast for 2024 includes an expected increase of 6-9% in adjusted earnings per share and sales growth of 5-7%, with projected sales growth of over 7% annually until 2026. The Arexvy vaccine against the respiratory syncytial virus recorded sales of 1.24 billion pounds in the year ended December 31. The company plans at least 12 major launches starting in 2025 in vaccines and specialty medicines.

Novartis (NYSE:NVS) – In the fourth quarter, Swiss pharmaceutical Novartis reported a 6% increase in adjusted net profit, totaling $3.13 billion, falling short of analysts’ estimates. The company extended its medium-term guidance, predicting annual sales growth of 5% through 2028. CEO Vas Narasimhan led a cost-cutting strategy and focus on specific therapeutic areas but faced challenges with some drugs that did not meet market expectations.

Pfizer (NYSE:PFE)Pfizer reported an unexpected quarterly profit, driven by the Covid treatment Paxlovid and cost cuts, although sales of products like Ibrance and Prevnar fell short of Wall Street estimates. In the quarter, Pfizer earned $0.10 per share on revenues of $14.25 billion. The company forecasts 2024 revenue in a range that could reach up to 5%. Covid product revenues hit $12.5 billion in 2023, far from the peak of $57 billion in 2022. Pfizer continues to cut spending on research and development.

United Parcel Service (NYSE:UPS)UPS plans to cut 12,000 jobs and explore options for its truck brokerage business, Coyote, after forecasting annual revenues below Wall Street expectations. The company aims to cut costs by $1 billion and faces demand challenges across various business segments. CEO Carol Tome does not anticipate improvements until the second half of 2024 and projected annual revenues of $92 billion to $94.5 billion, below the average analysts’ expectations.

Grab Holdings (NASDAQ:GRAB) – The Competition and Consumer Commission of Singapore (CCCS) initiated a detailed review of Grab Holdings‘ proposed acquisition of Trans-cab due to competitive concerns. Grab seeks to acquire Trans-cab and create a combined fleet of taxis and private hire vehicles. The CCCS has not yet confirmed its approval.

Mondelez International (NASDAQ:MDLZ)Mondelez is seeking more moderate growth in 2024, forecasting net revenue between 3% and 5%, citing geopolitical volatility. Last quarter’s profit was $950 million, exceeding expectations, with sales of $9.31 billion. The company plans investments to sustain growth. Shares fell 2.5% in Wednesday’s pre-market but still saw an increase of 14.5% over the last 12 months.

Starbucks (NASDAQ:SBUX)Starbucks lowered its annual sales forecasts after impacts from the war in the Middle East. Global same-store sales grew by 5%, below expectations, and the company expects annual growth of 4% to 6%. Shares rose 2.7% in pre-market trading.

Santander (NYSE:SAN)Santander reported a record net profit of 2.93 billion euros in the last quarter of 2023, a 28% increase from the previous year. The annual net profit reached 11.08 billion euros, boosting the return on tangible equity ratio to 15.06%. The quarterly net interest margin increased by 9.5% from the previous year. However, Argentina recorded a loss of 20 million euros.

Barclays (NYSE:BCS) – Wealth management firm Azura is expanding its operations in Dubai, hiring Hazem Shish, a former Barclays executive, as a partner to lead its strategic opportunities in the region. This move follows the trend of financial firms growing in Dubai, attracting ultra-wealthy investors. Azura, founded by Ali Jamal in 2019, has approximately $4 billion in assets under management and is focused on serving global billionaire fortunes.

Nomura Holdings (NYSE:NMR)Nomura CEO Kentaro Okuda announced a buyback of up to $677 million as a reward to investors for the recovery of its main investment banking and trading division. Strong performance in fixed income and retail boosted profits, putting the company on track for annual profit growth for the first time since Okuda became CEO in 2020. Last quarter’s net profit exceeded estimates, indicating a positive turnaround after years of challenges. The buyback also reflects improvements in cost controls in the wholesale division.

Nasdaq (NASDAQ:NDAQ)Nasdaq is planning to reduce jobs during the integration of Adenza, a fintech company, into its operations. The measure aims to minimize layoffs by focusing on merging Adenza’s offices in New York and London with those of Nasdaq to streamline operations.