Tag Archives: Business

Business

Kohl’s stock has risen nearly 10% following the dismissal of CEO Ashley Buchanan due to unethical conduct

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The company stated that Buchanan’s firing was ‘not connected to the performance of the business,’ which has suffered from reduced sales.

Kohl’s stock performance

Shares of Kohl’s Corporation (NYSE: KSS) increased by almost 10% on Thursday after the board terminated CEO Ashley Buchanan just four months into his tenure. Michael Bender, the board chair, has been appointed as the interim chief executive officer, effective immediately.

Buchanan’s dismissal followed an investigation by the Kohl’s board, which discovered that he breached the company’s code of conduct twice and was involved in undisclosed conflicts of interest due to a personal relationship with a vendor, as reported by The Wall Street Journal.

“Kohl’s stated that Buchanan’s termination is not related to the company’s performance, financial reporting, or operational results and did not involve any other company personnel.”

According to USA Today, the former CEO had a total compensation package exceeding $20 million.

On Thursday, Bender and other executives held a company-wide meeting to communicate the leadership changes and to reassure employees, as reported by the WSJ. Bender now becomes the fourth CEO to lead the struggling retailer in just three years, which continues to experience a downturn in sales.

Along with the leadership announcement on Thursday, Kohl’s also shared preliminary predictions for its first-quarter financial results, estimating that sales would likely decline by approximately 4%. The company will disclose these earnings at the end of this month on May 29 at 9 a.m.

Similar to many retailers, Kohl’s has been facing challenges with falling sales and reduced foot traffic due to consumers cutting back on spending in light of rising living costs and preferring online shopping over in-store visits.

Business

Starbucks reported earnings that fell short of expectations, but the coffee chain claims to be experiencing ‘momentum’ in its turnaround efforts

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The starbucks coffee giant disclosed weaker-than-anticipated earnings on Tuesday, along with another decline in same-store sales; however, it stated that its turnaround plan is beginning to show early positive results.

“Our financial outcomes do not yet reflect our advancements, but we are genuinely gaining momentum with our ‘Back to Starbucks’ initiative,” CEO Brian Niccol mentioned in a video shared on the company’s website. “We’re experimenting and learning quickly, and we’re observing changes in our coffeehouses.”

The company’s stock slipped 2% during after-hours trading.

Here’s the information the company provided compared to Wall Street’s expectations.

Starbucks share: according to a survey of analysts by LSEG

Earnings per share: 41 cents adjusted versus the anticipated 49 cents
Revenue: $8.76 billion compared to the expected $8.82 billion

Starbucks reported a net income of $384.2 million for the fiscal second quarter, or 34 cents per share, a decrease from $772.4 million, or 68 cents per share, a year ago.

When excluding restructuring expenses, the company made 41 cents per share.

Net sales increased by 2% to reach $8.76 billion.

For the fifth consecutive quarter, Starbucks experienced a decline in same-store sales. The company has seen a drop in sales as consumers in both the U.S. and China, its largest markets, look for more affordable coffee alternatives.

Since taking over in September, Niccol has been working to revive the U.S. business by focusing on getting “back to Starbucks” and enhancing the coffee and customer experience. In October, the company withdrew its forecast for fiscal 2025 as it revealed the initial phases of its turnaround plan.

The global same-store sales dipped 1% in the second quarter, driven by a 2% decrease in transactions. The decline in traffic was even more pronounced in Starbucks’ primary market.

In the U.S., transactions fell by 4%, which contributed to a 2% drop in same-store sales. In China, same-store sales remained unchanged for the quarter, as a lower average transaction value offset growth in the number of transactions.

Business

Tesla falls short on revenue consensus, missing Q1 EPS

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After the market closed on Tuesday, Tesla (TSLA) announced first-quarter adjusted earnings per share (EPS) of $0.27, which was below Wall Street’s consensus estimate of $0.41.

The revenue of $19.34 billion also missed expectations by $2.07 billion and represented a 9.2% decline year over year.

In the initial minutes of after-hours trading, TSLA shares dipped 1% but later saw a slight uptick of less than 1%.

Management attributed the drop in vehicle deliveries for the quarter, which had already been disclosed, to the updates made to the Model Y across all four production facilities. Furthermore, management indicated that a decrease in the average selling price was due to necessary sales incentives.

Tesla Business

Tesla reported delivering 336,681 vehicles in Q1 2025, a decrease from 386,810 a year prior and a significant drop from 495,570 in Q4 2024. Overall, total deliveries fell by 13%, and total production saw a 16% decline.

Total automotive revenue plummeted by 20% year over year to just under $14 billion this quarter. Meanwhile, revenue from energy generation and storage experienced a 67% year-over-year increase to $2.7 billion, while Services & Other brought in $2.6 billion, marking a 15% year-over-year rise.

Ahead of the earnings announcement, Jeff Kilburg, the founder and CEO of KKM Financial, stated on CNBC that the recent fluctuations in TSLA stock were more related to political factors than the company’s operational performance. Kilburg referred to Tesla as the “purest AI play” and downplayed the recent challenges in vehicle deliveries.

Business

Apple’s stock price surged on Wednesday as the market reacted to the latest tariff developments, which can be somewhat perplexing

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President Donald Trump announced that he would implement a 90-day pause on tariffs for most countries with rates over 10%, effective immediately.

However, Apple’s increase in stock value was somewhat confusing; Trump also stated that the tariff rate on China would rise to 125%, intensifying the trade conflict between the two largest economies globally.

As Apple primarily manufactures its iPhones in China through its partner Foxconn, these elevated tariffs could result in higher prices for products like iPhones and MacBooks than previously anticipated.

Apple’s Stock Performance

On Wednesday afternoon, the S&P 500 climbed by 8.2%, while the tech-heavy Nasdaq Composite soared by 9.7%, aiming for its most significant gain since October 13, 2008, according to Dow Jones Market Data.

Apple’s stock shot up by 12% to $193.59, positioning itself for its most considerable percentage gain since November 24, 2008.

Wedbush analyst Dan Ives commented, “This was a much-needed relief for tech stocks, helping pull the market and these stocks back from the brink, yet China still poses the most significant risk factor for Apple and the wider supply chain.”

Trump is encouraging companies to relocate their manufacturing to the United States, using tariffs as a strategy to expedite this shift.

He wrote on Truth Social on Wednesday morning, “This is a GREAT time to move your COMPANY into the United States of America, as Apple and many others are doing in record numbers.”

Nevertheless, it seems improbable that Apple would undergo a complete transformation in its manufacturing process.

BofA Securities analyst Wamsi Mohan noted on Wednesday morning, “Even though Apple could locate labor for iPhone assembly in the U.S., a substantial part of the sub-assemblies would still need to be produced in other countries, assembled in China, and then imported to the U.S.”

He also pointed out that while relocating final assembly to the U.S. might be feasible, transforming the entire iPhone supply chain would be a far more complex challenge that could take several years, if it’s even achievable.

Technology

Notable investor acquires NVDA, noting exceptionally high demand for GPUs

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Renowned investor Brad Gerstner recently informed CNBC that he has purchased shares of Nvidia (NVDA). He attributed this decision to the exceptionally high demand for GPU chips and President Donald Trump’s choice to exclude semiconductors from tariffs.

Gerstner is the founder of Altimeter Capital.

Gerstner’s Reasoning Behind Acquiring NVDA

“The demand for GPUs is unprecedented,” the investor remarked. “We are hearing this from companies like Google (GOOG), Tesla (TSLA), and others,” he further stated.

Gerstner pointed out that with Trump’s exemption of chips from tariffs, it seems likely that semiconductors will continue to avoid tariffs in the future.

“If we were to impose tariffs on the chips that we’ve designed and which are being purchased” by major U.S. companies, including Meta (META) and Microsoft (MSFT), “we would be impairing our own progress,” Gerstner explained. He emphasized that such a move could jeopardize America’s chances of succeeding in the AI competition.

In light of the tariff exemption that chips have received, Gerstner indicated that NVDA will be less affected by tariffs compared to many other technology companies.

Nevertheless, he warned that in the event of a U.S. recession, “even Nvidia may not perform as well.”

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Business

Bitcoin News: Bitcoin Experiences Worst Q1 in Ten Years, Raising Cycle Concerns Amid Economic Instability

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In Q1 2025, Bitcoin (BTC) recorded an 11.7% decline, marking its weakest first-quarter results since 2015, as reported by NYDIG Research. This drop, influenced by uncertainty in economic policies, profit-taking actions, and rising global trade tensions, has reignited discussions about the current status of the crypto market cycle.

A Ten-Year Low Opening for Bitcoin

Bitcoin’s performance in Q1 2025 ranked 12th out of the last 15 first quarters, which significantly contrasts its usual strong starts to the year. The last time BTC began a year so poorly was in 2015, during a drawn-out bear market that followed the Mt. Gox collapse. Although the asset eventually recovered, the poor start raises concerns regarding the course of 2025.

After Donald Trump’s election victory in November, the crypto markets surged due to optimism surrounding pro-crypto regulations and a more favorable stance from the SEC. However, this bullish outlook was shaken in early April when Trump announced extensive reciprocal tariffs on international trade partners.

This announcement resulted in a $5.4 trillion loss in the U.S. equities market over just two trading days, pushing the Nasdaq 100 into bear market territory and driving the S&P 500 down to its lowest level in 11 months.

Although Bitcoin initially demonstrated some resilience by decreasing less than 4% during the stock market downturn, it has since fallen below $80,000, raising concerns about the potential for macro-driven risk aversion to extend into the crypto market.

Business

Llama 4: Meta Platforms (META) is anticipated to launch its new large language model ‘Llama 4’ later this month

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Following at least two previous delays, according to a report from The Information on Friday, the company is striving to take the lead in the AI sector.

Nonetheless, the release of Llama 4 might be postponed once more, the report indicated, citing sources who are familiar with the situation.

Major tech companies have been heavily investing in AI infrastructure since the emergence of OpenAI’s ChatGPT, which transformed the technology landscape and spurred investment in machine learning.

The report mentioned that one reason for the delays is that Llama 4 fell short of Meta’s expectations in certain technical benchmarks, especially regarding reasoning and mathematical tasks.

It was also noted that the firm was worried that Llama 4 might not perform as well as OpenAI’s models in facilitating human-like voice conversations.

Under increasing pressure from investors to demonstrate returns on investments, Meta is planning to allocate up to $65 billion this year to enhance its AI infrastructure.

Additionally, the emergence of a popular, cost-effective model from a Chinese tech company, DeepSeek, calls into question the notion that creating the top AI model necessitates billions in funding.

Expertise of Meta Llama 4

According to the report, Llama 4 is expected to incorporate some technical elements from DeepSeek, with at least one version anticipated to utilize a machine-learning technique known as the mixture of experts method, which trains different parts of models for specialized tasks, enabling them to excel in those areas.

Meta is also considering initially launching Llama 4 through Meta AI and subsequently releasing it as open-source software, the report stated.

Last year, Meta introduced the largely free Llama 3 AI model, which can engage in conversations in eight languages, produce higher-quality computer code, and tackle more complex mathematical problems compared to earlier versions.

Business

Tariffs Trigger Another Stock Market Collapse—Losses Near $5 Trillion As Dow Dives Another 2,000 Points

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Topline Investors did not experience the recovery they may have anticipated on Thursday following the historic losses, as stocks once again fell significantly while the market processes President Donald Trump’s tariffs, amidst China imposing a 34% retaliatory tariff on U.S. imports.

Thursday marked the steepest daily drop since 2020 for all three major U.S. indices—the Dow Jones Industrial Average (-4%, or 1,680 points on Thursday), the S&P 500 (-5%), and the tech-focused Nasdaq (-6%)—and the situation worsened on Friday.

The Dow dropped 5.1%, or roughly 2,100 points, by early afternoon, extending its two-day decline to around 3,700 points, while both the S&P and Nasdaq fell about 5.5% each on Friday, resulting in a cumulative 10% drop for the S&P and an 11% decrease for the Nasdaq since Trump’s tariff announcement on Wednesday.

All three indices are down at least 10% from their peak values achieved a few months ago, with the Dow and S&P reaching their lowest levels intraday since May, and the Nasdaq hitting its most affordable point since April—officially entering correction territory—and the Nasdaq falling into a bear market as it traded over 20% below its all-time high in December, marking its first bear market since 2022.

Stocks have declined to their lowest points in several months, with both the Dow and S&P reaching their lowest intraday values since May, while the Nasdaq touched its least expensive level since April.

Beyond the effects of the continued negative sentiment stemming from the tariffs of 10% or more on most imports announced on Wednesday, investors also reacted negatively to the retaliatory measures led by China and Trump’s steadfastness, as the president stated on Friday via social media that his “POLICIES WILL NEVER CHANGE.”

The selloff erased more than $4.9 trillion in market capitalization from stocks listed on the S&P, according to data from FactSet, with Apple, Nvidia, and Tesla comprising a combined loss exceeding $1 trillion.

Which Stocks Have Declined The Most Due To Tariffs?

Shares of American companies heavily reliant on China for a significant share of their revenues were especially impacted, with the iPhone maker Apple, coffee giant Starbucks, and Elon Musk’s Tesla each declining by at least 7%. Since Wednesday, the biggest percentage losers among American firms valued at over $100 billion include Citigroup, ConocoPhillips, Boeing, Bank of America, Starbucks, Qualcomm, Morgan Stanley, Goldman Sachs, Advanced Micro Devices, Wells Fargo, and Apple, with shares of each losing 15% or more during the two-day span.

Trump urged Federal Reserve Chairman Jerome Powell to promptly lower interest rates; however, Powell indicated no inclination to do so in a speech on Friday, mentioning it is “too soon” to assess the forthcoming monetary policy decisions. Powell did, however, issue a stark warning about the economic repercussions of tariffs, forecasting that they would lead to “higher inflation and slower growth.”

Business

Ulta Beauty’s fourth-quarter performance exceeded expectations, leading to a surge in its shares

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Following the report, shares of Ulta Beauty Inc (NASDAQ: ULTA) rose 7% during after-hours trading. The company revealed earnings per share of $8.46 with a revenue of $3.5 billion. Analysts surveyed by Investing.com had predicted an EPS of $7.11 and revenue of $3.46 billion.

Comparable sales grew by 1.5%.

For the entire fiscal year 2025, the company projected EPS in the range of $22.50 to $22.90 with revenue expected between $11.5 billion and $11.6 billion, contrasting with estimates of $24.04 EPS and $11.26 billion in revenue. Comparable sales are anticipated to fall between 0% to 1%.

The company stated, “Fiscal 2025 will be a pivotal year as we make purposeful investments to fuel our future growth and move quickly to optimize our business.”

ULTA Beauty: is this perennial leader encountering new obstacles?

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Business

Tesla stock falls as worries grow over Trump’s tariff proposals

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Tesla Inc. stock experienced a decline on Monday as investors reacted to increasing macroeconomic uncertainty following U.S. President Donald Trump’s announcement of new tariffs.

Key Information: Trump revealed intentions to implement 25% tariffs on imports from Canada and Mexico, along with 20% tariffs on goods from China, effective Tuesday. This announcement has heightened worries about rising costs for American consumers and the likelihood of increased inflation.

Economic indicators have already shown signs of deterioration, with consumer spending falling in January and some GDP predictions turning negative. Inflation continues to surpass the Federal Reserve’s 2% target, with the Consumer Price Index jumping 3% in January, which was higher than economists had anticipated.

While Treasury Secretary Scott Bessent diminished the inflationary consequences of the tariffs by stating that China would bear the costs, investors remain wary. St. Louis Federal Reserve President Alberto Musalem noted that short-term inflation expectations have “increased significantly” in recent weeks.

The Federal Reserve has kept interest rates steady at a target range of 4.25% to 4.5% since January, and the likelihood of maintaining this range during the next meeting stands at 93%, as per the CME Group’s FedWatch tool.

Tesla Stocks Monday report

TSLA Stock Movement: Tesla shares fell by 2.84% to $284.65 at the close of the market on Monday.