Fisker Files for Bankruptcy, Chegg Stocks Rise on 23% Workforce Reduction, and More

Fisker (NYSE:FSR) – The American electric vehicle manufacturer filed for bankruptcy last night, aiming to sell its assets and restructure debts following severe financial challenges in the production and delivery of its “Ocean” SUVs. Fisker, declaring bankruptcy under Chapter 11, reported assets valued between $500 million and $1 billion and liabilities ranging from $100 million to $500 million. This indicates that while the company has substantial resources, it also faces significant debt. In 2023, Fisker produced over 10,000 vehicles but delivered only about 4,700, showing a discrepancy between production and actual delivery, possibly reflecting operational or demand challenges.

Chegg (NYSE:CHGG) – Chegg plans to reduce its global workforce by 23%, cutting 441 employees and closing offices. The restructuring aims to focus on more integrated and efficient educational solutions driven by artificial intelligence. Nathan Schultz, the new CEO, is leading the transformation to compete in a market dominated by educational technology. Shares jumped 19.5% in pre-market trading.

Nvidia (NASDAQ:NVDA) – On Monday, the US Supreme Court decided to hear an appeal by Nvidia to overturn a lawsuit accusing the company of misleading investors about the extent of sales related to the cryptocurrency sector. The case was revived after a lower court allowed the class-action suit to proceed.

Apple (NASDAQ:AAPL) – Apple announced it will discontinue its “buy now, pay later” service in the US, replacing it with a new installment loan program. Starting later this year, users will be able to access loans through credit cards, debit cards, and other lenders when using Apple Pay.

Microsoft (NASDAQ:MSFT), Roblox (NYSE:RBLX) – Jerret West, head of marketing at Xbox, is leaving Microsoft to become chief marketing officer at Roblox. His departure comes amid a broad restructuring in Xbox marketing, forming a central game marketing team and transferring other teams.

Adobe (NASDAQ:ADBE) – The US government has sued Adobe, accusing it of hiding high termination fees and making it difficult to cancel subscriptions in its most popular plan. The FTC claims that Adobe was not transparent about the terms of the subscription and created obstacles for consumers trying to cancel.

Broadcom (NASDAQ:AVGO) – On Monday, Broadcom’s shares closed up 5.4%, pushing its market capitalization above Eli Lilly’s, making it the 8th most valuable US company, with over $847 billion. The surge reflects the company’s strong recent performance in the chip sector and its expansion into the AI market. In pre-market trading on Tuesday, shares rose +2.80%.

Amazon (NASDAQ:AMZN) – Unionized Amazon workers voted to join the International Brotherhood of Teamsters, one of the largest unions in the US. This partnership aims to strengthen workers’ positions in future negotiations for better working conditions and dignified jobs at Amazon.

Snowflake (NYSE:SNOW) – Cybercriminals are demanding ransoms from up to 10 companies compromised on the Snowflake data platform, with amounts ranging from $300,000 to $5 million. The gang is using stolen data to pressure payments, auctioning them off on illegal forums, in a campaign described as a “new stage” by Mandiant analyst Austin Larsen.

Tesla (NASDAQ:TSLA) – Tesla has filed a lawsuit against Matthews International in a California federal court, accusing it of misappropriating and disclosing trade secrets related to battery manufacturing. The electric vehicle company is seeking more than $1 billion in damages and injunctions to safeguard its innovations. Matthews denies the allegations and commits to defending itself robustly. Meanwhile, Tesla is also involved in a legal dispute related to validating a shareholder vote that approved a record compensation package for Elon Musk, arguing that it impacts a Delaware case on the legality of the salary package. Elon Musk also announced a stock-based compensation plan for high-performing employees at Tesla, aiming to reward exceptional contributions amidst job cuts and competitive challenges in the electric vehicle market.

Toyota Motor (NYSE:TM) – Despite contrary recommendations from major proxy advisors, Akio Toyoda and nine other Toyota board members were re-elected, reflecting their popularity among retail investors and the company’s record results. The drop in Toyoda’s approval rating to 85% and certification testing violations could prompt governance reforms.

Stellantis NV (NYSE:STLA) – Stellantis NV has reversed its remote work policy, requiring its engineers to work in the office at least three days a week to facilitate collaboration in vehicle design and development, especially during new model launches.

GE Aerospace (NYSE:GE) – The Wall Street Journal reported that Larry Culp, CEO of GE Aerospace, declined an offer from Boeing to take the top position at the aircraft manufacturer. Culp previously mentioned that he could better serve Boeing as its primary supplier.

Boeing (NYSE:BA) – Boeing CEO Dave Calhoun will address safety culture concerns at a US Senate hearing today, acknowledging the need for improvements following recent incidents with the 737 MAX 9. Calhoun is expected to state that the company is acting to correct flaws and ensure aerospace safety.

Embraer (NYSE:ERJ) – Embraer arrives at the Farnborough Airshow event, scheduled from July 22 to 26, with shares at a historic high. After receiving significant orders, the Brazilian aircraft manufacturer is ready to meet future demand for new planes. The company stands out amid a global shortage, benefiting from available production slots ahead of its larger rivals.

Citigroup (NYSE:C) – Citigroup is highlighting one of its less visible segments, services, in its revitalization strategy. This sector, responsible for nearly half of last quarter’s profits, will be presented to investors by Jane Fraser and Mark Mason in New York. The initiative aims to demonstrate how efficient global money movement operations can boost the bank’s profitability. Meanwhile, the Federal Deposit Insurance Corp (FDIC) board plans to vote to downgrade Citigroup’s data management systems rating from “deficiency” to “shortcoming.” This action stems from a gap identified in the bank’s “living will,” detailing how it would be dissolved in case of bankruptcy. Although the FDIC considers this action, it is not expected that the US Federal Reserve will do the same. Citigroup stated that it is always improving its stress testing and resolution planning processes, maintaining strong financial health.

Goldman Sachs (NYSE:GS) – Goldman Sachs economists warn that the US labor market may be at a “tipping point,” where a decline in worker demand would directly affect employment, not just available positions. This reflects economic uncertainty that could lead to interest rate cuts by the Fed.

Bank of America (NYSE:BAC) – According to a Bank of America survey, global investors are expected to continue investing in stocks, with 32% preferring US stocks after reallocating funds from the money market. The survey revealed record optimism among managers, with money market fund cash levels at a three-year low.

UBS Group AG (NYSE:UBS) – UBS has started a share buyback program, acquiring about $50.21 million (44.8 million Swiss francs) in shares last week, with plans to repurchase up to $1 billion in shares this year.

Berkshire Hathaway (NYSE:BRK.A), BYD (USOTC:BYDDY), Occidental Petroleum (NYSE:OXY) – Warren Buffett’s Berkshire Hathaway recently reduced its stake in BYD, the world’s largest electric vehicle seller in 2022, by selling 1.3 million shares, reducing its stake from 7.02% to 6.90%. Additionally, Berkshire increased its stake in Occidental Petroleum to about 29%, acquiring 2.9 million shares for approximately $173 million in June. Buffett took advantage of falling energy sector stock prices, paying an average of less than $60 per share in recent purchases.

Blackstone (NYSE:BX) – Blackstone has proposed an offer of 275.8 billion yen (approximately $1.74 billion) to buy Infocom, a Japanese digital comics distributor. The offer includes a public share acquisition at 6,060 yen per share, totaling 141.4 billion yen. Teijin, the current controller, plans to sell its 58% stake in the company after the acquisition.

Standard Chartered (LSE:STAN) – Standard Chartered failed to dismiss allegations of more extensive violations of US sanctions against Iran than previously admitted. More than 200 investors are suing the bank in London for false statements about compliance with sanctions from 2007 to 2019.

Shell (NYSE:SHEL) – Shell agreed to buy Singapore’s Pavilion Energy from Temasek, strengthening its dominant position in the liquefied natural gas (LNG) market. The deal, with no financial details disclosed yet, will expand Shell’s access to gas markets in Europe and Singapore.

Exxon Mobil (NYSE:XOM) – A US judge dismissed Exxon Mobil’s lawsuit against the activist group Arjuna Capital after the latter agreed not to present future proposals at the company’s annual meetings about greenhouse gas emissions, eliminating the basis of the lawsuit.

Bunge Global SA (NYSE:BG) – The $34 billion merger between US-based Bunge and Glencore-backed Viterra to form an agricultural trading giant is pending EU regulatory approval until July 18. The European Commission will decide whether to approve the deal, require corrective measures, or initiate a prolonged investigation.

Sociedad Quimica y Minera de Chile SA (NYSE:SQM) – The world’s second-largest lithium producer has signed a long-term agreement to supply lithium hydroxide to Hyundai and Kia, crucial for electric vehicle batteries. This deal follows similar partnerships with Ford and LG Energy, bolstering SQM’s expansion plans.

Southern Company (NYSE:SO) – Southern Company CEO Chris Womack predicts more industry commitments to build large-scale light water reactors in the US before 2030, driven by the recent start of operations at the Vogtle 4 reactor, the first in over 30 years in the country.

Merck & Co. (NYSE:MRK) – Merck has received FDA approval for its pneumococcal vaccine Capvaxive, competing with Pfizer’s Prevnar 20. Capvaxive covers 84% of strains causing pneumococcal diseases in older adults and may expand its access depending on CDC recommendations this month. The competition promises to be fierce in the adult pneumococcal vaccine market.

Pfizer (NYSE:PFE) – Kansas has sued Pfizer, accusing it of misleading the public about the efficacy and safety of its Covid-19 vaccine, alleging violations of the state’s Consumer Protection Act. The state seeks unspecified damages for purported false statements about the vaccine’s effectiveness and risks.

UnitedHealth Group (NYSE:UNH) – The Centers for Medicare & Medicaid Services announced they will end an advance payment program that helped Medicare providers during service disruptions from Change Healthcare, a UnitedHealth unit. The program will conclude on July 12, and new requests will not be accepted after that date.

Lennar (NYSE:LEN) – For the quarter ended May 31, Lennar Corp reported earnings of $3.45 per share, exceeding analysts’ average estimate of $3.24 per share. The average price per home was $426,000, down from $449,000 the previous year. The company delivered 19,690 homes, compared to 17,885 last year. For the next quarter, Lennar expects to deliver between 20,500 and 21,000 homes, while analysts estimate 20,917 homes. Shares fell -3.44% in pre-market trading.

La-Z-Boy (NYSE:LZB) – La-Z-Boy exceeded fourth-quarter expectations with net income of $40.3 million (91 cents per share), up from $34.6 million (79 cents per share) the previous year. Sales reached $554 million. Analysts tracked by FactSet estimated adjusted earnings per share of 70 cents on $516.4 million in sales. Projections for the first quarter include sales between $475 million and $495 million. The company anticipates a slowdown due to the summer season and a one-week factory shutdown in July. Additionally, La-Z-Boy plans to open 12 to 15 new furniture galleries in the next fiscal year.

Best Buy (NYSE:BBY) – UBS analyst Michael Lasser said Best Buy shares are well-positioned for a rise. He upgraded his rating to “Buy” due to an 18% upside potential, highlighting the strong correlation with appliance sales, the electronics replacement cycle, and product innovation.

GameStop (NYSE:GME) – CEO Ryan Cohen announced plans to operate a smaller network of stores without detailing the use of the company’s $4 billion cash. The lack of clarity on strategic plans disappointed investors, contributing to a 12% drop in share value on Monday. Shares fell -1.55% in pre-market trading on Tuesday.

Philip Morris International (NYSE:PM) – Philip Morris International announced the suspension of online sales of Zyn nicotine pouches by Swedish Match North America while responding to a DC subpoena related to a flavored tobacco sales ban in the region. The company seeks to ensure compliance with local regulations.

Webtoon Entertainment – Webtoon Entertainment, an online comics platform, plans to raise up to $315 million in its US initial public offering, with a valuation of up to $2.67 billion. The company will offer 15 million shares at a price between $18 and $21 each. The company will be listed on the Nasdaq Global Select Market under the symbol “WBTN.” After the IPO and a private placement, Naver, the South Korean tech giant and majority owner of Webtoon Entertainment, will hold a 63.4% stake in the company.

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