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Tesla Exits Market Top 10, Victoria’s Secret Stock Tumbles 30% on Weak Forecast

Fernanda T
Latest News
March 07 2024 5:43AM

Tesla (NASDAQ:TSLA)Tesla exited the top 10 largest US companies by market cap for the first time in 13 months, surpassed by Visa (NYSE:V). The stock drop reflected concerns about margins and demand. Elsewhere, Tesla announced its departure from Australia’s main automotive lobby, accusing it of misleading consumers about fuel efficiency standards. The company requested an investigation into the FCAI’s allegations and will cease membership in June. The government plans to impose aggressive fuel efficiency standards. Additionally, Tesla reported that its German factory would face electricity shortages until March 17, following an alleged criminal attack leaving the Berlin gigafactory without power, affecting production. The company estimates significant losses, while German industry calls for better protection of critical infrastructure.

Victoria’s Secret (NYSE:VSCO) – After forecasting next year’s sales at $6 billion, below the $6.19 billion expectation, Victoria’s Secret shares fell 31.4% in Thursday’s pre-market. The company reported a net income of $181 million in the fourth quarter, with revenue of $2.08 billion, and same-store sales fell 6%.

Nvidia (NASDAQ:NVDA) – Directors of Nvidia Corp. sold about $180 million in shares in recent days, spurred by the stock’s advance into record territory. The sales included 200,000 shares by Tench Coxe and 12,000 by Mark Stevens.

Apple (NASDAQ:AAPL)Apple has intensified its rivalry with Epic Games, blocking the Fortnite maker from launching its own online marketplace on iPhones and iPads in Europe. The companies are in a prolonged legal battle, while Apple faces concerns over iPhone demand in China. The EU questioned Apple, citing a potential violation of antitrust rules.

Meta Platforms (NASDAQ:META) – Forty US states and Washington, DC, have called on Meta Platforms to curb the “dramatic” rise in scammers hijacking Facebook and Instagram accounts. New York’s Attorney General leads the charge, demanding immediate measures to protect users.

International Business Machines (NYSE:IBM)IBM unveiled on Wednesday that its initial tests of Adobe‘s (NASDAQ:ADBE) generative AI tools resulted in productivity improvements. With 1,600 designers using these tools, IBM significantly shortened project timelines.

Booking Holdings (NASDAQ:BKNG)Kayak, owned by Booking, launched AI-powered tools for travel planning, including Ask Kayak and Kayak PriceCheck, to facilitate purchasing decisions and price comparisons. The tools utilize chatbot technology and extensive research to find ideal destinations and flights, aiming to simplify the user experience.

Boeing (NYSE:BA)Boeing, criticized for not providing employee names following the 737 MAX incident, finally yielded to NTSB pressure. The FAA requires Boeing to address quality issues after an audit revealed problems in the manufacturing process control.

Mobileye (NASDAQ:MBLY)Mobileye‘s shares surged on Wednesday, boosted by optimistic comments at an investor conference. The company reiterated sales expectations, bringing relief to investors after a previous drop.

Stellantis (NYSE:STLA) – A joint venture between Stellantis and Leapmotor, approved by the Chinese regulator, will allow Stellantis to build and sell electric vehicles outside China. The initiative received green light from China’s National Development and Reform Commission (NDRC) while awaiting approvals in other markets. Additionally, Stellantis revealed a 5-year investment plan for Latin America, with 5.6 billion euros earmarked from 2025 to 2030. In Mirafiori, Italy, Stellantis extended reduced operations due to low demand for the Fiat 500 electric and Maserati. The shutdown will last until April 20, affecting 2,200 workers. Italy launched a 1 billion dollar (950 million euros) plan to promote eco-friendly vehicles, but it is not yet in effect.

Rush Street Interactive (NYSE:RSI)Rush Street Interactive‘s shares rose 19.3% in pre-market trading after fourth-quarter results exceeded analysts’ expectations. The company also forecasts annual revenues between $770 million and $830 million, surpassing Wall Street estimates.

Enbridge (NYSE:ENB)Enbridge, a North American pipeline operator, raised its short-term profit forecast and will invest $500 million in pipeline and storage expansions on the US Gulf Coast. The anticipated growth, driven by acquisitions, aims to meet rising demand, maintaining optimism in its pipeline capabilities.

Brown-Forman (NYSE:BF.A)Brown-Forman suffered a 7.2% pre-market drop due to lower-than-expected third-quarter sales. Net income reached $285 million, or 60 cents per share, while sales fell 1% to $1.069 billion, below estimates.

Foot Locker (NYSE:FL)Foot Locker‘s shares are slightly down after plummeting on Wednesday, even after beating quarterly estimates but delaying financial forecasts. Fourth-quarter adjusted earnings per share were 38 cents, above the predicted 32 cents, with sales of $2.38 billion, surpassing the $2.28 billion estimate.

Estee Lauder (NYSE:EL) – Valisure, an independent US lab, detected high levels of benzene in acne treatments from brands like Clinique, owned by Estee Lauder, Up & Up, by Target, and Clearasil, by Reckitt Benckiser. They urged the FDA to investigate and withdraw the products, citing cancer concerns.

AstraZeneca (NASDAQ:AZN)AstraZeneca plans to invest 826.80 million dollars (650 million pounds) in Britain to strengthen vaccine research, development, and manufacturing, the government announced. The investment includes 450 million pounds for facilities in Liverpool and 200 million pounds for expansion in Cambridge.

Novo Nordisk (NYSE:NVO)Novo Nordisk selected Japan as the first Asian market to launch its weight loss drug Wegovy, due to a lack of awareness of obesity as a disease and associated stigma. The company seeks to educate and expand treatment in the country.

UnitedHealth (NYSE:UNH) – The US will accelerate Medicare/Medicaid payments to hospitals affected by a hacker attack on UnitedHealth. Medical associations criticize the government’s response as inadequate, calling for additional measures, including financial assistance.

Berkshire Hathaway (NYSE:BRK.A)Berkshire Hathaway acquired about 3.7 million shares of Liberty Sirius XM Holdings (NASDAQ:LSXMA) in recent days, raising its stake to approximately 23% in the company. This reflects intermittent purchases throughout the year.

Goldman Sachs (NYSE:GS)Goldman Sachs revised its S&P 500 stock buyback forecast, expecting a 13% increase, to $925 billion in 2024, driven by stronger-than-expected tech profits.

Bank of America (NYSE:BAC)Bank of America expects a 10% to 15% increase in its investment banking revenues in the first quarter compared to the previous year, driven by increased capital market activity, while Citigroup (NYSE:C) and JPMorgan Chase (NYSE:JPM) have more conservative projections.

UBS (NYSE:UBS)UBS‘s CEO criticized European regulators for allowing the US to dominate the banking sector post-2008 crisis. CEO Sergio Ermotti highlighted the lack of regulatory and political unity in Europe, resulting in less competitive European banks globally.

New York Community Bancorp (NYSE:NYCB)NYCB said on Wednesday that it raised $1 billion, with investors like Liberty Strategic Capital, led by former US Treasury Secretary Steven Mnuchin, and appointed a former currency comptroller as CEO. Fitch Ratings downgraded New York Community Bancorp to BB+, while Moody’s downgraded it from Ba2 to B3 after finding “material weaknesses” in loan risk management.