Raphael Stevens

More stories

  • 188 Shares169 Views

    in Business

    ThredUp to list on alternative stock exchange: ‘We’re here to make a difference,’ CEO says

    ThredUp announced it’s dual listing on the Long Term Stock Exchange on Tuesday, the same day as it’s set to release its first-quarter earnings report.
    The Long Term Stock Exchange is designed to promote an emphasis on the long term among investors and businesses. 
    The decision comes as the company is facing financial challenges.

    The ThredUp application on a smartphone arranged in Hastings-on-Hudson, New York.
    Tiffany Hagler-Geard | Bloomberg | Getty Images

    ThredUp, the clothing-consignment company, announced Tuesday that it’s dual listing its stock on the Long Term Stock Exchange, or LTSE, a national securities exchange designed to promote sustainable principles and a long-term focus among investors and businesses. 
    “This is another indication of ThredUp’s commitment to the long term,” CEO James Reinhart told CNBC. “We’re here to make a difference. Not for two or three years, but for 20, 40, 50 [years].” 

    related investing news

    It’s just the second company currently listed with LTSE. Reinhart says he first read about the market a few years ago and started talks to list on the exchange over the past two years.
    LTSE was founded by tech entrepreneur Eric Ries in 2016, but it took several years to get up and running. For a company to list with LTSE, it has to outline a set of principles to ensure that it will abide by certain long-term commitments, such as environmental improvements or corporate-governance standards.
    In ThredUp’s LTSE listing, for instance, the company calls “the environment” one of its “most important stakeholders.” 
    LTSE launched in a bid to address criticism that companies have been maximizing profits for shareholders above all else.
    The new stock exchange wants to “reverse the epidemic of short-term thinking,” Ries told CNBC. “The incentives that we’ve created around finance, around the capital market, really make it difficult for companies to do the right thing.” 

    Ries joins others, including billionaire investor Warren Buffett and JPMorgan Chase CEO Jamie Dimon, who have argued that such short-term thinking is hurting companies.
    “People are going to realize that the definition of profit that we have been using the last 25 years is wrong, and that what it means to make a profit is to maximize human flourishing,” Ries said. 
    For all its lofty ambitions, the path was never going to be easy for an exchange like LTSE — and it certainly hasn’t been so far. There are more than a dozen stock exchanges in the U.S., but the majority of all trading occurs on the New York Stock Exchange and the Nasdaq Stock Market, making it difficult for alternatives to gain traction. 
    LTSE first gained approval from the U.S. Securities and Exchange Commission in 2019, and it started trading in September 2020. The market struggled to pick up steam, but it saw a distinct boost in 2021 when software company Asana listed with it.
    LTSE functions similarly to other exchanges, with the same ticker symbol across all trading platforms. A company’s opening and closing price will be established the same way it has been since going public, typically giving weight to the primary exchange it’s on.
    Like any public company, those that list on the LTSE still report quarterly earnings, but the exchange’s standards are designed so that the earnings reports are meant to give context to the long-term narrative of the listed company.
    A company that’s dual listed on LTSE might list concurrently with an initial public offering or, like ThredUp, might be a public company that’s traded elsewhere initially and chooses to meet LTSE’s standards for listing. ThredUp first went public in March 2021 and is currently listed with Nasdaq.
    Its LTSE announcement arrives at a tricky time, though, given an increasingly difficult retail environment. For 2022, the company reported a loss of $92.3 million, or 92 cents per share. 
    But Reinhart noted those industry challenges speak to ThredUp’s commitment to long-term, forward-looking policies. “It’s always been easier to do these things later,” he said. “Sometimes companies need to lead and show people it can be done.” 
    “It would have been really easy [for Reinhart] to call it off or to postpone because it’s a tough time,” Ries added, saying the dual listing lays a foundation “for future prosperity at a time when the natural human impulse is to be afraid.” 
    One other company, the communication platform Twilio, did list on LTSE but it delisted in 2022, citing cost concerns. 
    For its part, LTSE said it will continue to eye the long game from here.
    “We’re not in a rush to make predictions about how [LTSE] is going to take over the world overnight, because ultimately, we only want the very best companies,” Ries said. “For us, this is about creating a real club of the best of the best to show that there’s a new way forward.”  More

  • 150 Shares169 Views

    in Finance

    UBS announces Credit Suisse CEO Koerner to join board after emergency rescue

    The Swiss giant said the legal close of the acquisition is expected within the next few weeks, and the combined entity will operate as a “consolidated banking group,” UBS said in a statement.
    Swiss authorities brokered the controversial emergency rescue of Credit Suisse by UBS for 3 billion Swiss francs ($3.37 billion) over the course of a weekend in March.

    Ulrich Koerner, chief executive officer of Credit Suisse Group AG, during a Bloomberg Television interview in London, UK, on Tuesday, March 14, 2023. 
    Hollie Adams | Bloomberg | Getty Images

    UBS on Tuesday announced that Credit Suisse CEO Ulrich Koerner will join the executive board of the new joint entity once its emergency purchase of the stricken bank completes.
    The Swiss giant said the legal close of the acquisition is expected within the next few weeks, and the combined entity will operate as a “consolidated banking group.”

    The Credit Suisse brand will operate independently for the “foreseeable future” as UBS integrates the business in a “phased approach,” the bank said in a statement.
    Swiss authorities brokered the controversial emergency rescue of Credit Suisse by UBS for 3 billion Swiss francs ($3.37 billion) over the course of a weekend in March, as a crisis of confidence among depositors and shareholders threatened to topple the 167-year-old institution.
    UBS confirmed that it will initially manage the two separate companies upon the closure of the deal, with each institution continuing to operate its own subsidiaries and branches while the UBS board of directors and executive board will hold overall responsibility for the consolidated group.
    Koerner, who took over the ailing Credit Suisse in July 2022 and immediately launched a massive strategic overhaul aimed at reversing the bank’s chronic loss-making and risk management failures, will join the board, UBS confirmed.

    “With his knowledge of both organizations, he will be responsible for ensuring Credit Suisse’s operational continuity and client focus, while supporting the integration process,” UBS said.

    UBS veteran Todd Tuckner will become chief financial officer for the group, taking over from Sarah Youngwood, who has decided to step down after the transaction closes.
    The combined firm will operate with five business divisions, seven functions and four regions in addition to Credit Suisse, with each represented by a board member reporting to UBS CEO Sergio Ermotti.
    Ermotti said this was a “pivotal moment for UBS, Credit Suisse and the entire banking industry.”
    “Together we will solidify and represent the Swiss model for finance around the world, one that is capital-light, less reliant on taking risk and anchored by stability and high-touch service,” Ermotti said in a statement.
    “Adding Credit Suisse to UBS’s highly capital-accretive business model, diversified revenue streams, disciplined risk management and balance sheet for all seasons will benefit our clients, employees, investors, the economies we serve and the wider financial system.” More

  • 125 Shares99 Views

    in Finance

    A.I. trade is leaving investors vulnerable to painful losses: Evercore

    Monday – Friday, 5:00 – 6:00 PM ET

    Fast Money Podcast
    Full Episodes

    The artificial intelligence trade may be leaving investors vulnerable to significant losses.
    Evercore ISI’s Julian Emanuel warns Big Tech concentration in the S&P 500 is at extreme levels.

    “The AI revolution is likely quite real, quite significant. But … these things unfold in waves. And, you get a little too much enthusiasm and the stocks sell off,” the firm’s senior managing director told CNBC’s “Fast Money” on Monday.
    In a research note out this week, Emanuel listed Microsoft, Apple, Amazon, Nvidia and Google parent Alphabet as concerns due to clustering in the names.
    “Two-thirds [of the S&P 500 are] driven by those top five names,” he told host Melissa Lee. “The public continues to be disproportionately exposed.”
    Emanuel reflected on “odd conversations” he had over the past several days with people viewing Big Tech stocks as hiding places.
    “[They] actually look at T-bills and wonder whether they’re safe. [They] look at bank deposits over $250,000 and wonder whether they’re safe and are putting money into the top five large-cap tech names,” said Emanuel. “It’s extraordinary.”

    It’s particularly concerning because the bullish activity comes as small caps are getting slammed, according to Emanuel. The Russell 2000, which has exposure to regional bank pressures, is trading closer to the October low.
    For protection against losses, Emanuel is overweight cash. He finds yields at 5% attractive and plans to put the money to work during the next market downturn. He believes it will be sparked by debt ceiling chaos and a troubled economy over the next few months.
    “You want to stay in the more defensive sectors. Interestingly enough, with all of this AI talk, health care and consumer staples have outperformed since April 1,” Emanuel said. “They’re going to continue outperforming.”
    Disclaimer More

  • 225 Shares139 Views

    in Business

    Lucid posts a wider loss as demand concerns linger, says it has enough cash to last into 2024

    Luxury electric vehicle maker Lucid Group on Monday reported a wider first-quarter loss.
    Lucid said it has enough cash to continue operations into next year.
    The company is still addressing demand concerns.

    In an aerial view, a sign is posted on the exterior of Lucid headquarters on March 29, 2023 in Newark, California. Electric vehicle maker Lucid announced plans to lay off 1,300 workers, 18 percent of its workforce, as part of a restructuring plan. 
    Justin Sullivan | Getty Images

    Luxury electric vehicle maker Lucid Group on Monday reported a wider first-quarter loss, but said that it still has enough cash to continue operations into next year.
    Shares were down over 8% in after-hours trading following the news.

    related investing news

    12 hours ago

    13 hours ago

    “We are on track to produce over 10,000 vehicles in 2023, with companywide initiatives ongoing that will enable Lucid to pivot to higher volumes as market conditions allow,” CEO Peter Rawlinson said on Monday. Lucid guided to 2023 production of between 10,000 and 14,000 vehicles in February.
    Here are the key numbers from Lucid’s first-quarter earnings report, along with Wall Street’s consensus estimates as reported by Refinitiv:

    Loss per share: 43 cents
    Revenue: $149.4 million vs. $209.9 million expected.

    Analysts polled by Refinitiv expected a loss per share of 41 cents, but it wasn’t immediately clear whether the bottom-line results were comparable to that estimate.
    Lucid’s first-quarter net loss was $779.5 million, or 43 cents per share, much wider than the $81.3 million, or 5 cents per share, it reported in the first quarter of 2022, when it was still ramping up production of the Air. Revenue, however, jumped year over year to $149.4 million from $57.7 million.
    Lucid ended the first quarter with about $3.4 billion in cash and about $700 million in available credit lines. Finance chief Sherry House said cash should be sufficient to fund the company at least until the second quarter of 2024.

    The EV maker had about $4.4 billion in cash and an additional $500 million in credit available as of the end of 2022.
    Lucid has recently been moving to conserve cash. It said in March that it would cut about 18% of its workforce, roughly 1,300 workers, in a bid to lower spending.
    The company is still addressing demand concerns.
    The automaker’s expected 2023 production of “over 10,000” Air sedans is well below the “more than 28,000” reservations it recorded as of its fourth-quarter earnings report in February. And, in April, Lucid said it produced 2,314 Airs in the first quarter while delivering just 1,406 to customers during the period, a gap the company blamed on a “slow January” and changes to the U.S. government’s EV tax credits.
    In another sign that demand for the Air may be weak, Lucid declined to provide an updated reservation number on Monday.
    Lucid said on April 25 that its next model, a large electric SUV called Gravity, is on track to begin production in 2024. It plans to reveal the Gravity later this year.
    This story is developing. Please check back for updates. More

  • 138 Shares189 Views

    in Business

    Hollywood writers’ strike halts production of ‘Stranger Things,’ ‘Severance,’ Marvel’s ‘Blade’

    Members of the Writers Guild of America headed for the picket lines a week ago and their walkout is already hurting Hollywood productions.
    Several notable films and shows have halted or wrapped production early, including Netflix’s “Stanger Things,” Disney and Marvel’s “Blade,” AppleTV+’s “Severance” and Paramount’s “Evil.”
    This is the first strike of its kind during the streaming era and hits many companies across different facets of their media businesses.

    Members of the Writers Guild of America East hold signs as they walk on the picket line outside the Peacock NewFront in New York City, May 2, 2023.
    Michael M. Santiago | Getty Images

    Members of the Writers Guild of America dropped their pencils and headed for the picket lines a week ago, and their walkout is already hurting Hollywood productions.
    More than 11,000 film and television writers, who say their compensation doesn’t match the revenue generated in the streaming era, are on strike for the first time since 2008. Immediately, daily late-night shows went dark, alongside the weekly comedy staple “Saturday Night Live.”

    Since then, several notable films and shows have halted or wrapped production early, including Netflix’s “Stranger Things,” Disney and Marvel’s “Blade,” AppleTV+’s “Severance” and Paramount’s “Evil.”
    Beyond the delayed production and likely delayed releases of these titles, industry experts worry the work pause could have a financial toll greater than that of the previous writers’ strike.
    Writers who manned the picket lines 15 years ago remained on strike for 100 days, leading to an estimated cost of $2 billion to the industry, according to data from the Milken Institute. It also had major economic repercussions for ancillary businesses such as hotels, restaurants and construction companies that often work with film and television productions.
    This is the first strike of its kind during the streaming era and hits many companies across three different facets of their media businesses: theatrical, linear TV and streaming.
    The WGA is seeking higher compensation and residuals, particularly when it comes to streaming shows, as well as new rules that will require studios to staff television shows with a certain number of writers for a specific period. The WGA is also seeking compensation throughout the process of preproduction, production and postproduction. Currently, writers are often expected to provide revisions or craft new material without being paid.

    Several productions with finished scripts, such as Amazon’s “The Rings of Power,” have decided to continue filming without writers or showrunners on set. Others have opted to postpone production.
    On Monday, Apple’s drama series “Severance” paused production of its second season after members of the International Alliance of Theatrical Stage Employees (IATSE) and Teamsters refused to cross the WGA picket line at York Studios in New York.
    This is the second Apple TV+ series to shut down because of the strike, after Maya Rudolph’s series “Loot” paused filming last week in Los Angeles.
    Over the weekend, “Stranger Things” creators Matt and Ross Duffer announced production on the fifth and final season of the show had been delayed because of the labor unrest.
    “Writing does not stop when filming begins,” the duo tweeted. “While we’re excited to start production with our amazing cast and crew, it is not possible during this strike. We hope a fair deal is reached soon so we can all get back to work.”
    Paramount’s “Evil” wrapped filming on season four earlier than anticipated, in part because of disruptions from picketing WGA members and, in part, because one of its cast members is taking a leave of absence due to a family matter. The season was slated to have 10 episodes, but it remains unclear whether the early end to production will affect those plans.
    Warner Bros. Discovery’s streaming show “Hacks,” Showtime’s “Billions” and Starz’s “The Venery of Samantha Bird” all stopped production.
    On the theatrical front, Marvel has shut down production on its vampire thriller “Blade.” The film was set to begin shooting next month in Atlanta, Georgia. Nic Pizzolatto, creator of “True Detective,” was recently tapped to work on the script, but did not finish. Production is expected to restart once the strike is over.
    The Alliance of Motion Picture and Television Producers, in a response to a request for comment on the halted production, declined to comment beyond statements issued last week with the organization’s stance on outstanding points of negotiation.

    Ripple effects

    The strike is already having ripple effects across the industry as stars and talent stand in solidarity with writers.
    Drew Barrymore stepped away from her role as host of the MTV Movie Awards in support for the WGA. Several presenters, including Jamie Lee Curtis, also indicated that they would not attend the ceremony. The show ultimately canceled its live broadcast and aired a taped version of the event Sunday night.
    At-home viewers may not notice the strike’s effect right away, as episodes of popular shows continue to be released. However, future seasons could experience significant delays or a shortened number of episodes.
    The writers for ABC’s “Abbott Elementary” were supposed to convene on May 2 to begin work on season three of the popular comedy show. However, that room is closed for the strike.
    Similarly, the writers room for Showtime’s “Yellowjackets” only met for one day to work on season three before breaking for the strike. At Warner Bros. Discovery, the “Game of Thrones” prequel, “A Knight Of The Seven Kingdoms: The Hedge Knight,” also closed its writers room for the duration of the strike.
    Netflix’s “Big Mouth” was six weeks into writing its eighth and final season, but paused due to the labor dispute. The streamer’s hit “Cobra Kai” also saw its season six writers room shutter.
    The longer the strike continues, the more productions are expected to be affected.
    “A protracted strike is a definite possibility,” wrote Doug Creutz, analyst at TD Cowen, in a research note published Friday. He defined protracted as more than three months.
    “Clearly, a significantly extended strike would impact the amount of new shows available to streaming services and linear networks, which eventually could start to drive up both SVOD churn and linear cord-cutting,” he said. More

  • 150 Shares169 Views

    in Finance

    Stocks making the biggest moves after hours: Lucid, Palantir, PayPal and more

    People stand in front a banner displaying Palantir Technologies Inc. signage during the company’s initial public offering (IPO) in front of the New York Stock Exchange (NYSE) in New York, Sept. 30, 2020.
    Michael Nagle | Bloomberg | Getty Images

    Check out the companies making headlines in after-hour trading.
    Lucid — The electric vehicle maker shed 8% after the company posted growing losses in the first quarter but said it has enough cash to continue operating into next year. The company missed expectations for revenue, reporting $149.4 million against a consensus estimate of $209.9 million from analysts polled by Refinitiv.

    related investing news

    2 hours ago

    Palantir — The software stock soared 22% after Palantir beat analysts’ expectations for the first quarter and issued upbeat guidance. Palantir reported 5 cents in adjusted earnings per share on $525 million in revenue, while analysts polled by Refinitiv forecasted 4 cents in earnings per share and $506 million in revenue. The company also gave a strong outlook for full-year profitability.
    PayPal — Shares slid about 5.5%. PayPal issued weak current-quarter expectations for earnings per share, while raising its full-year guidance for the metric. Separately, the digital payments company beat expectations on top and bottom lines for the first quarter, according to Refinitiv.
    Skyworks — The semiconductor stock fell nearly 9%. Skyworks said its business fundamentals remained strong in the second quarter despite the challenging backdrop, but did guide third-quarter earnings and revenue to come in below Wall Street expectations. The company posted second-quarter earnings of $2.02 per share, excluding items, in line with analysts’ expectations, according to Refinitiv. Revenue was also in line with the Street’s forecast. More

  • 175 Shares129 Views

    in Finance

    Stocks making the biggest moves midday: Berkshire Hathaway, Catalent, Tyson Foods, Zscaler and more

    Tyson food meat products are shown in this photo illustration in Encinitas, California.
    Mike Blake | Reuters

    Check out the companies making headlines in midday trading.
    Berkshire Hathaway — The conglomerate’s A shares rose more than 1% as investors cheered a strong earnings report from Warren Buffett’s company. On Saturday, Berkshire reported a 12.6% jump in operating earnings in the first quarter, driven by a rebound in the conglomerate’s insurance business. The stock briefly topped $500,000 apiece Monday.

    related investing news

    Catalent — Catalent shares plunged 25.9% after the company said it will delay the release of its fiscal third-quarter results and expects significant cuts to its 2023 guidance.
    Tyson Foods — Shares plummeted 16.4% after the food production company posted an unexpected loss for the recent quarter and cut its revenue outlook for the year. Tyson Foods now said it anticipates between $53 billion and $54 billion in revenue for the year.
    Zscaler — The cloud security stock rallied 20.6% on strong preliminary earnings and full-year guidance. Preliminary revenue, non-GAAP operating income and billings for the company’s third quarter all came in above respective consensus estimates of analysts polled by FactSet. The company also raised its full-year guidance.
    Occidental Petroleum — The energy stock fell nearly 3% after Warren Buffett knocked down speculation that Berkshire Hathaway would take full control of the oil giant. He said he doesn’t know what Berkshire would do with it. The “Oracle of Omaha” has amassed a stake of 23.5%, while receiving approval to purchase up to 50% of the company.
    PacWest – The regional bank stock held on to a gain of about 3.7% on Monday. Shares opened nearly 30% higher after PacWest slashed its dividend but said its business was still “fundamentally sound.” Other regional bank stocks also gave up some early gains, with Western Alliance up less than 1% despite being reiterated as a buy at Janney.

    Six Flags — Six Flags jumped 18.6% after the regional theme park company surpassed first-quarter analysts’ expectations. Six Flags posted a narrower-than-expected loss of 84 cents per share, compared to expectations of a per-share loss of 89 cents, according to FactSet. Six Flags posted revenue of $142.2 million, greater than the expectation of $132.6 million, with CEO Selim Bassoul calling the results “proof points” that its new strategy is working.
    American Airlines — Shares jumped 3.5% after JPMorgan upgraded the stock to overweight from neutral. The firm cited American’s improving balance sheet and exposure to international travel as upsides, amid a long-term shift favoring “the Big 3” airlines — American, Delta and United — over discount carriers.
    Viatris — Shares gained nearly 6% after the pharmaceutical company beat earnings expectations and reaffirmed full-year guidance, helping investors overlook underwhelming revenue. Viatris posted $932.9 million in adjusted net income for the first quarter, beating the consensus estimate of $835.8 million from analysts polled by FactSet. But revenue came in at $3.72 billion, falling short of the $3.8 billion forecast from Wall Street.
    AMC Entertainment — The movie theater chain and meme stock favorite added 0.2%. The company announced over the weekend that it reached an agreement to settle a class-action lawsuit with shareholders over a proposed conversion of AMC Preferred Equity Units to common company shares.
    Fortinet — Shares of the cybersecurity company gained 2.3% as Bank of America upgraded shares to buy. The bank cited the company’s “strong fundamentals” following its latest quarterly report, in addition to a “substantial price advantage over competition.” Fortinet’s stock has soared almost 35% year to date.
    Scotts Miracle-Gro — Shares popped more than 9% after JPMorgan upgraded the fertilizer company to overweight from neutral. The bank called the stocks a “very reasonable investments” at current levels.
    — CNBC’s Hakyung Kim, Alex Harring, Yun Li, Michelle Fox, Sarah Min, Brian Evans and Jesse Pound contributed reporting More

  • 138 Shares199 Views

    in Business

    Disney nixes reservation requirements at Florida parks, adds back dining plans

    Prompted by guest feedback, Disney is no longer requiring reservations for date-based tickets at its Walt Disney World Resort in Orlando, Florida.
    The company is also reinstating its dining plans for hotel guests and extending early park hours through 2024.
    Disney plans to address concerns with its Genie and Genie+ itinerary programs, which were launched during the pandemic.

    Guests at Florida’s Walt Disney World.
    Joe Burbank | Orlando Sentinel | Tribune News Service | Getty Images

    Changes are coming to the Walt Disney World Resort in Orlando, Florida.
    Prompted by guest feedback, Disney is updating some park policies to better accommodate both local and out-of-town visitors, the company said Monday.

    To start, Disney World will remove theme park reservation requirements for its date-based tickets beginning Jan. 9, 2024. This reverses a pandemic-era policy which required guests to plan visits before arriving at the parks by going through a two-step process, which included purchasing a ticket and then selecting a reservation date.
    Now, there will be only one step: purchase a ticket for a specific date.
    Annual passholders will be required to make reservations for most visits. However, Disney plans to roll out “good-to-go days,” which won’t require park reservations.
    The change is in addition to the recently adopted rule that passholders can visit any of Disney’s Orlando-based theme parks after 2 p.m. without a reservation. The only exclusion is admission to Magic Kingdom on Saturdays and Sundays.
    Disney’s most recent string of operational updates are part of its wider strategy to reduce friction points for guests. The company’s theme park division is one of the most lucrative segments of its overall business, and its success is driven by strong customer experiences.

    The House of Mouse looks for ways to improve the guest experience, through new rides and attractions, better food options, magical moments with characters or updates to its resorts. The company aims to adapt to customer feedback — including concerns from some guests that the park reservation system was confusing or inconvenient.
    As part of the changes announced Monday, Disney also said it is bringing back dining plans for those staying at its resort hotels after Jan. 9, 2024. Disney also announced that it is extending its early theme park entry for hotel guests through 2024.
    The company said Monday that it could make more changes moving forward. Disney is looking to address concerns with its Genie and Genie+ itinerary programs, which were launched during the pandemic.
    These digital offerings were designed to optimize guest experiences in the parks, allowing them to schedule their days more effectively, with access to estimated wait times and restaurant reservations. Coupled with Lightning Lane, guests also have the option to pay for a shorter wait for Disney’s top attractions.
    Currently, guests can only access their Genie and Genie+ itineraries the day of their visit. Disney said it is working on ways for guests to make selections before their visit, so they can spend less time planning and more time enjoying the park. More