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    What a government shutdown could mean for air travel

    Lawmakers in the House voted down a short-term spending bill on Thursday, raising the chances for a government shutdown.
    If no deal is reached, the shutdown could begin 12:01 a.m. ET on Saturday.
    Air traffic controllers and TSA agents are considered essential employees, though they could end up working without a paycheck.

    A lone traveler makes his way past a nearly deserted TSA security screening area at Orlando International Airport ahead of the arrival of Hurricane Milton, on October 9, 2024 in Orlando, Florida. 
    Paul Hennessy | Anadolu | Getty Images

    A government shutdown is looming just as the peak holiday travel season gets underway.
    Lawmakers have been at an impasse and on Thursday voted down a short-term bill, which was backed by President-elect Donald Trump, to continue to fund the U.S. government. A shutdown could begin as early as 12:01 a.m. ET on Saturday if no deal is reached.

    Hundreds of thousands of government employees would be furloughed if Congress fails to pass a spending bill.
    A government shutdown could cost the U.S. travel industry $1 billion per week, estimated the U.S. Travel Association, which represents major hotel groups and others.
    “It’s hard to see how anyone in Congress wins if they force TSA workers, air traffic controllers, and other essential employees to work without pay during one of the busiest travel periods of the year,” Geoff Freeman, the group’s president, said in a statement on Friday.

    What does this mean for air travel?

    Commercial airplanes are still scheduled to fly, even given the chance of a shutdown.
    Airlines are forecasting the busiest year-end holiday season on record. The Transportation Security Administration expects its officers to screen more than 40 million people during the holidays through Jan. 2. United Airlines alone said it will fly 9.9 million people between Dec. 19 and Jan. 6, up 12% over last year.

    The government deems the more than 14,000 air traffic controllers and close to 60,000 TSA agents essential, which means they would continue working, though they wouldn’t be paid during the shutdown.

    Read more CNBC airline news

    Prepare for longer lines?

    TSA officers “would continue working without pay in the event of a shutdown,” the agency’s administrator, David Pekoske, said Thursday on social media platform X.
    “While our personnel have prepared to handle high volumes of travelers and ensure the security of our transportation systems, an extended shutdown could mean longer wait times at airports,” the TSA said in a statement Friday.

    What happened last time?

    The last time the government shut down, it stretched for more than a month from late 2018 through early 2019.
    Callouts from a few air traffic controllers in the highly congested airspace along the U.S. East Coast snarled air traffic during that shutdown. Then-President Trump and lawmakers reached a deal shortly after that to end the shutdown, the longest funding lapse in U.S. history.
    Congestion has vexed airline leaders. Meanwhile, the Federal Aviation Administration is once again without a permanent administrator after FAA chief Mike Whitaker, who was appointed by President Joe Biden last year, said he will step down Jan. 20, when Trump takes office.
    Modernization of air traffic control and hiring more controllers should be the next FAA administrator’s priority, Delta Air Lines CEO Ed Bastian told CNBC earlier this week.

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    Party City to close all of its stores, report says

    Party City on Friday announced it will close all of its stores and has initiated corporate layoffs effective immediately, according to a CNN report.
    CNN reported the company’s closure was due to ongoing financial challenges at the party supply retailer, which less than two years ago filed for bankruptcy protection over its inability to pay off $1.7 billion in debt.
    The New Jersey-based chain exited bankruptcy in September 2023 through a plan that included transitioning into a privately held company and canceling nearly $1 billion in debt.

    A sign in a Party City store in Miami, Florida, on Jan. 18, 2023.
    Joe Raedle | Getty Images

    Party City on Friday announced it will close all of its stores and has initiated corporate layoffs effective immediately, according to a CNN report.
    CEO Barry Litwin told corporate employees in a meeting viewed by CNN that Party City has to “commence a winddown process immediately,” and that Friday would be their last day of work for the company.

    “That is without question the most difficult message that I’ve ever had to deliver,” Litwin said at the meeting, according to the report.
    CNN reported the company’s closure was due to ongoing financial challenges at the party supply retailer, which less than two years ago filed for bankruptcy protection over its inability to pay off $1.7 billion in debt.
    The New Jersey-based chain exited bankruptcy in September 2023 through a plan that included transitioning into a privately held company and canceling nearly $1 billion in debt. A majority of its 800 U.S. stores were able to stay open as it emerged from bankruptcy.
    Litwin was named CEO in August and said at the time he saw “many opportunities to strengthen our financial performance and build a leading end-to-end celebration experience for consumers,” according to a press release. 
    Prior to his appointment, he was the CEO of Global Industrial Company, a distribution leader in industrial products.

    Competition in the party goods and costume space has grown in recent years, including Spirit Halloween’s continued rise within and outside of the spooky season. The holiday costume chain announced in October that it would open 10 new “Spirit Christmas” stores, with some of the stores being converted from existing Spirit Halloween locations.
    Online retailers have also added pressure to Party City’s operation, even as the company began to offer items on Amazon in 2018.
    Representatives for Party City did not immediately respond to CNBC’s request for comment on CNN’s report or potential story closures. Read the full CNN report here.

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    CFPB sues JPMorgan Chase, Bank of America and Wells Fargo over Zelle payment fraud

    The Consumer Financial Protection Bureau on Friday sued the operator of the Zelle payments network and the three U.S. banks that dominant transactions on it.
    The agency alleges that the firms failed to properly investigate fraud complaints or give victims reimbursements.
    Zelle said in a statement Friday that it was prepared to defend itself against this “meritless lawsuit.”

    Rohit Chopra, director of the CFPB, testifies during the Senate Banking, Housing and Urban Affairs Committee hearing titled “The Consumer Financial Protection Bureau’s Semi-Annual Report to Congress,” in the Dirksen Building on Nov. 30, 2023.
    Tom Williams | Cq-roll Call, Inc. | Getty Images

    The Consumer Financial Protection Bureau on Friday sued the operator of the Zelle payments network and the three U.S. banks that dominate transactions on it, alleging that the firms failed to properly investigate fraud complaints or give victims reimbursement.
    The CFPB said customers of the three banks — JPMorgan Chase, Bank of America and Wells Fargo — have lost more than $870 million since the launch of Zelle in 2017.

    Zelle, a peer-to-peer payments network run by bank-owned fintech firm Early Warning Services, allows for instant payments to other consumers and businesses and has quickly surged to become the biggest such service in the country. At the same time, Democrat lawmakers have stepped up criticism of banks in recent years over the financial crimes happening on Zelle.
    “The nation’s largest banks felt threatened by competing payment apps, so they rushed to put out Zelle,” CFPB Director Rohit Chopra said in a statement. “By their failing to put in place proper safeguards, Zelle became a gold mine for fraudsters, while often leaving victims to fend for themselves.”
    The suit is the latest move by the CFPB in the waning days of the Biden administration. Many of the actions it has taken, including steps to limit credit card late fees and overdraft charges, have been met with stiff opposition from banks and their trade groups. Corporations have had success pushing back against regulators by choosing legal venues known as friendly to suits challenging federal oversight.
    In fact, JPMorgan said in August that it was considering litigation against the CFPB if the regulator sought to punish the bank for its role in the Zelle network.
    The CFPB wants to force banks to stop their allegedly unlawful practices around Zelle and to pay an unspecified amount in penalties, it said.

    ‘Glaring flaws’

    The vast majority of Zelle activity is uneventful. Of the $806 billion that flowed across the network last year, only $166 million in transactions was disputed as fraud by customers of JPMorgan, Bank of America and Wells Fargo, the three biggest players on the platform.
    But the three banks collectively reimbursed just 38% of those claims, according to a July Senate report that looked at disputed unauthorized transactions.
    Banks say they investigate each fraud claim, but they often find that what customers say was fraud was technically a scam where customers authorized payments. In those cases, banks aren’t usually required to make customers whole.
    The CFPB claimed that Zelle’s “limited identity verification methods” have allowed criminals to infiltrate the network, enabling them to divert payments and move between member banks that didn’t share information among institutions.

    The Zelle online banking logo is displayed on a smartphone with the Zelle web page visible in the background in this photo in Brussels, Belgium, on Dec. 10, 2023.
    Jonathan Raa | Nurphoto | Getty Images

    The agency also said banks failed to properly investigate complaints about Zelle activity and didn’t consistently report fraud activity.
    “The banks failed to fix glaring flaws in their systems even as hundreds of thousands of customers filed complaints about fraud,” Chopra told reporters during a call on Friday. “The banks knew their customers were having their money stolen, but since they weren’t bearing the cost of these losses themselves, they dragged their feet on fixing the problems.”
    Zelle is the preferred way for cyber criminals to extract funds because it is faster than other remittance options, according to Tom Peacock, director of global fraud intelligence for cybersecurity firm BioCatch.

    ‘Meritless’ and misleading

     Early Warning Services said in a statement Friday that it was prepared to defend itself against this “meritless lawsuit.”
    “Zelle leads the fight against scams and fraud and has industry-leading reimbursement policies that go above and beyond the law,” said Jane Khodos, an Early Warning Services spokeswoman. “The CFPB’s misguided attacks will embolden criminals, cost consumers more in fees, stifle small businesses and make it harder for thousands of community banks and credit unions to compete.”
    Furthermore, the $870 million figure cited by the CFPB for fraud losses is misleading because it includes incidents where the bank found that cases didn’t involve fraud, but errors or false claims, according to Early Warning Services.
    Early Warning Services has said that while transaction volumes rose in 2023, reports of scams and fraud fell almost 50%, and that only a tiny fraction of payment volumes are disputed as fraud.

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    Starbucks baristas strike in three U.S. cities during pre-Christmas rush

    Starbucks baristas are striking in Los Angeles, Chicago and Seattle.
    Starbucks Workers United is pushing for better pay for baristas as it negotiates with the company.
    The coffee giant said in a statement that the union prematurely ended its bargaining session this week.

    Starbucks Workers United members picket outside a Starbucks store in Chicago, Illinois, US, on Friday, Dec. 20, 2024. 
    Vincent Alban | Bloomberg | Getty Images

    Starbucks baristas in some locations are planning to strike through Christmas Eve, starting with cafes in Los Angeles, Chicago and Seattle on Friday.
    The strikes will escalate each day, covering new markets, as Starbucks Workers United pushes for better pay for baristas. Starbucks is “backtracking on our promised path forward,” the union said in a post on X announcing the strikes.

    The stoppage could mean longer waits for holiday drinks and popular Starbucks merchandise in the days leading up to Christmas, when many Americans will be off work and school or buying last-minute gifts.
    Relations between the company and the union have turned frosty again, after a thaw earlier this year. In late February, both sides agreed to work together on a “foundational framework” that would include a process to achieve collective bargaining agreements for individual stores. Since then, they’ve conducted more than nine bargaining sessions over 20 days, according to Starbucks.
    Earlier this week, Starbucks and the union met for the last scheduled bargaining session of the year. But ahead of the meeting, Starbucks Workers United baristas voted to authorize a strike if the coffee giant didn’t propose a comprehensive package that would address pay and other benefits.
    In the bargaining session, Starbucks proposed no immediate pay increase and only guaranteed annual pay hikes of 1.5% going forward, the union said.
    Starbucks said in a statement that Workers United prematurely ended the bargaining session this week.

    “We are ready to continue negotiations to reach agreements. We need the union to return to the table,” the company said. 
    The union asked for a 64% increase to hourly employees’ wages immediately and a 77% pay hike over the life of a three-year contract, according to Starbucks.
    “This is not sustainable,” the company said in a statement.

    Starbucks Workers United members picket outside a Starbucks store in Chicago, Illinois, US, on Friday, Dec. 20, 2024. 
    Vincent Alban | Bloomberg | Getty Images

    It’s been a tough year for Starbucks. Globally and in the U.S., its sales have declined as consumers look elsewhere for their caffeine buzz. In the wake of the sales slump, baristas will reportedly receive a smaller annual pay hike next year than they have in previous years.
    Starbucks Workers United represents more than 500 company-owned locations of Starbucks.
    Starbucks baristas aren’t the only workers striking during the last-minute holiday rush. Amazon workers across seven facilities went on strike on Thursday to put pressure on the e-commerce giant to come to the bargaining table.

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    Netflix secures U.S. rights to the FIFA Women’s World Cup in 2027, 2031

    Netflix on Friday announced it has secured exclusive broadcast rights in the U.S. to the FIFA Women’s World Cup in 2027 and 2031.
    The streaming giant said coverage will include commentary and entertainment from studio shows and top-tier talent, as well as Netflix original documentaries in the lead-up to the tournament.
    The 2027 tournament is set to take place in 12 cities across Brazil.
    The host country for the 2031 tournament is yet to be announced.

    Esther Gonzalez of Spain kisses the FIFA Women’s World Cup Trophy after the team’s victory in the FIFA Women’s World Cup Australia & New Zealand 2023 Final match between Spain and England at Stadium Australia on August 20, 2023.
    Alex Pantling – Fifa | Fifa | Getty Images

    Netflix on Friday announced it has secured exclusive rights in the U.S. to the FIFA Women’s World Cup in 2027 and 2031.
    The announcement comes just days before Netflix will stream its first ever National Football League Christmas Day games. Adding the Women’s World Cup to its portfolio shows the streaming giant is continuing to bulk up its sports rights portfolio. It also comes as the popularity of women’s sports has risen over the past year.

    “I’ve seen the fandom for the FIFA Women’s World Cup grow tremendously — from the electric atmosphere in France in 2019, and most recently, the incredible energy across Australia and New Zealand in 2023,” Netflix Chief Content Officer Bela Bajaria said in a press release. “Bringing this iconic tournament to Netflix is not just about streaming matches — it’s about celebrating the players, the culture, and the passion driving the global rise of women’s sports.”
    The 2027 tournament is set to take place in 12 cities across Brazil. The host country for the 2031 tournament is yet to be announced.
    Netflix said coverage of the Women’s World Cup will include commentary and entertainment from studio shows and top-tier talent, as well as Netflix original documentaries around major players and the sport’s rapidly growing fan base in the lead-up to the tournament.
    The Women’s World Cup has continued to grow in popularity, and more people in the U.S. tuned in for the women’s final in 2019 than the men’s in 2018. U.S. viewership dropped substantially in 2023, however, after the two-time defending champions were knocked out in the Round of 16.
    As the audience for the WNBA and women’s national soccer team has grown significantly in the U.S., soccer remains one of the most popular sports globally.

    Netflix has 282.7 million global memberships, and the streamer has been pushing for growth internationally in part through its cheaper, ad-supported tier.
    Sports media rights have also exploded in valuation for media companies as live sports beckon the biggest audiences.
    Netflix has continued to grow into the sports category, streaming a Mike Tyson-Jake Paul fight last month, which was watched by 108 million people, making it the most-streamed sporting event ever, according to Netflix.
    On Christmas Day, the streamer is set to cover the NFL double-header featuring the Kansas City Chiefs versus the Pittsburgh Steelers and the Baltimore Ravens versus the Houston Texans. More

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    Banking app Dave, back from the brink, is this year’s biggest gainer among financials with 934% surge

    Fintech firm Dave came back from the brink of collapse, turned profitable and has consistently topped Wall Street analyst expectations.
    It’s the top gainer for 2024 among U.S. financial stocks, with a 934% year-to-date surge through Thursday.
    Fintech firms like Dave and Robinhood are the most promising heading into next year, according to JMP Securities analyst Devin Ryan.

    Jason Wilk
    Source: Jason Wilk

    Jason Wilk, the CEO of digital banking service Dave, remembers the absolute low point in his brief career as head of a publicly-traded firm.
    It was June 2023, and shares of his company had recently dipped below $5 apiece. Desperate to keep Dave afloat, Wilk found himself at a Los Angeles conference for micro-cap stocks, where he pitched investors on tiny $5,000 stakes in his firm.

    “I’m not going to lie, this was probably the hardest time of my life,” Wilk told CNBC. “To go from being a $5 billion company to $50 million in 12 months, it was so freaking hard.”
    But in the months that followed, Dave turned profitable and consistently topped Wall Street analyst expectations for revenue and profit. Now, Wilk’s company is the top gainer for 2024 among U.S. financial stocks, with a 934% year-to-date surge through Thursday.
    The fintech firm, which makes money by extending small loans to cash-strapped Americans, is emblematic of a larger shift that’s still in its early stages, according to JMP Securities analyst Devin Ryan.
    Investors had dumped high-flying fintech companies in 2022 as a wave of unprofitable firms like Dave went public via special purpose acquisition companies. The environment turned suddenly, from rewarding growth at any cost to deep skepticism of how money-losing firms would navigate rising interest rates as the Federal Reserve battled inflation.
    Now, with the Fed easing rates, investors have rushed back into financial firms of all sizes, including alternative asset managers like KKR and credit card companies like American Express, the top performers among financial stocks this year with market caps of at least $100 billion and $200 billion, respectively.

    Big investment banks including Goldman Sachs, the top gainer among the six largest U.S. banks, have also surged this year on hope for a rebound in Wall Street deals activity.

    Stock chart icon

    Dave, a fintech firm taking on big banks like JPMorgan Chase, is a standout stock this year.

    But it’s fintech firms like Dave and Robinhood, the commission-free trading app, that are the most promising heading into next year, Ryan said.
    Robinhood, whose shares have surged 190% this year, is the top gainer among financial firms with a market cap of at least $10 billion.
    “Both Dave and Robinhood went from losing money to being incredibly profitable firms,” Ryan said. “They’ve gotten their house in order by growing their revenues at an accelerating rate while managing expenses at the same time.”
    While Ryan views valuations for investment banks and alternative asset manages as approaching “stretched” levels, he said that “fintechs still have a long way to run; they are early in their journey.”
    Financials broadly had already begun benefitting from the Fed easing cycle when the election victory of Donald Trump last month intensified interest in the sector. Investors expect Trump will ease regulation and allow for more innovation with government appointments including ex-PayPal executive and Silicon Valley investor David Sacks as AI and crypto czar.
    Those expectations have boosted the shares of entrenched players like JPMorgan Chase and Citigroup, but have had a greater impact on potential disruptors like Dave that could see even more upside from a looser regulatory environment.

    Gas & groceries

    Dave has built a niche among Americans underserved by traditional banks by offering fee-free checking and savings accounts.
    It makes money mostly by extending small loans of around $180 each to help users “pay for gas and groceries” until their next paycheck, according to Wilk; Dave makes roughly $9 per loan on average.
    Customers come out ahead by avoiding more expensive forms of credit from other institutions, including $35 overdraft fees charged by banks, he said. Dave, which is not a bank, but partners with one, does not charge late fees or interest on cash advances.
    The company also offers a debit card, and interchange fees from transactions made by Dave customers will make up an increasing share of revenue, Wilk said.
    While the fintech firm faces far less skepticism now than it did in mid-2023— of the seven analysts who track it, all rate the stock a “buy,” according to Factset — Wilk said the company still has more to prove.
    “Our business is so much better now than we went public, but it’s still priced 60% below the IPO price,” he said. “Hopefully we can claw our way back.” More

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    From Nike to Intel, CEO departures at U.S. companies hit a record this year

    CEO exits at U.S. public companies hit a record in 2024 as they faced competitive and strategic challenges.
    Turnover included chief executives at U.S. companies that have long dominated in their industries — like Boeing, Nike and Starbucks.
    Consumer-focused companies, which are more susceptible to changing tastes and trends, generally have higher turnover than industries like oil and gas or utilities, which tend to have internal and longer-tenured CEOs.

    Clockwise from top: Former Boeing CEO Dave Calhoun (CNBC), Starbucks former CEO Laxman Narasimhan (Getty Images), former Nike CEO John Donahoe (Reuters), former Intel CEO Pat Gelsinger (Getty Images)
    TL: CNBC | TR: Getty Images | BL: Reuters | BR: Getty Images

    Retired, ousted or poached, CEOs headed for the exits this year.
    U.S. public companies announced 327 chief executive changes this year through November, according to outplacement firm Challenger, Gray & Christmas.

    That’s more than in any other year since at least 2010, when the firm first started tracking the turnover. It’s also an 8.6% increase from last year.
    Turnover included CEOs at U.S. companies that have long dominated their industries — like Boeing, Nike and Starbucks. The pace of change points to those companies’ customers, investors, hedge funds or boards growing impatient with sales slumps or strategic missteps in an otherwise strong economy when consumers proved they were willing to spend.
    CEO changes slowed during the pandemic, when companies were suddenly faced with lockdowns, remote work, supply chain difficulties and shortages, if not outright survival. They later faced higher borrowing costs, inflation, labor shortages, shifting consumer preferences and other challenges.
    Over the past 14 years, 2021 had the lowest number of replacements at 197.
    “The cost of capital, the speed of transformation, is creating faster turnover,” said Clarke Murphy, managing director and former chief executive of Russell Reynolds Associates, a leadership advisory firm.

    Murphy said it was easier to stand out for poor performance in an otherwise strong market.
    “In years of 20-plus-percent S&P [500] returns two years in a row, any company that’s significantly underperforming, the spotlight has been on, and boards of directors moved faster than they might have moved five or seven years ago,” Murphy said.
    Consumer-focused companies, which are more susceptible to changing tastes and trends, generally have higher turnover than industries like oil and gas or utilities, which tend to have internal and longer-tenured CEOs.
    The recent spike in turnover comes even as the number of public companies has dropped.
    Here are some of the major U.S. CEO changes so far this year:

    Intel

    The semiconductor company ousted CEO Pat Gelsinger earlier this month, nearly four years after he was appointed to turn the chipmaker around and better compete with rivals.
    Intel’s stock price and market share had collapsed as the artificial intelligence wave boosted chipmaker Nvidia while Intel struggled to crack into the business.
    A successor hasn’t yet been named.

    Boeing

    The aerospace giant announced former CEO Dave Calhoun’s departure in March, part of a broad executive shake-up. It came nearly three months after an unsecured door plug blew off midair from a nearly new Boeing 737 Max 9 operated by Alaska Airlines, plunging the company back into a safety crisis after years of problems across its defense and commercial aerospace business, frustrating the leaders of some of its biggest airline customers.
    Calhoun himself was appointed in the last days of 2019 to succeed ex-CEO Dennis Muilenburg, who was ousted for his handling of the aftermath of two fatal crashes of Boeing’s 737 Max in 2018 and 2019.

    Boeing’s new CEO Kelly Ortberg visits the company’s 767 and 777/777X programs’ plant in Everett, Washington, U.S. August 16, 2024. 
    Boeing | Marian Lockhart | Via Reuters

    Calhoun was succeeded in August by Kelly Ortberg, a three-decade aerospace veteran and former Rockwell Collins CEO, whom Boeing plucked out of retirement in Florida to steady the company.
    In the midst of a labor strike, which ended last month, Ortberg announced thousands of layoffs and slashed costs elsewhere to conserve cash as Boeing works toward stabilizing production.

    Starbucks

    With sales shrinking in its biggest markets, Starbucks poached Chipotle Mexican Grill star CEO Brian Niccol to turn around the coffee chain’s fortunes, replacing Laxman Narasimhan. The company’s shares soared nearly 25% when Niccol’s appointment was announced in August.

    Brian Niccols, CEO of Starbucks, speaking with CNBC on Oct. 31st, 2024. 

    In the 100 days since his appointment, he’s announced plans to bring the company “back to Starbucks” and refocus on what first attracted customers to the coffee chain. Early stages of the strategy include making its coffee shops more welcoming, trimming its lengthy menu and speeding up service.
    Chipotle, meanwhile, named insider and industry veteran Scott Boatwright to the Mexican food chain’s helm in November.

    Nike

    The shoemaker replaced CEO John Donahoe in September with Elliott Hill, a company veteran who started as an intern at Nike in the 1980s.
    Donahue had helped Nike grow sales since he took the helm, from $39.1 billion in fiscal 2019 to $51.4 billion in fiscal 2024, but growth eventually stagnated after he moved away from wholesale partners like Foot Locker and Macy’s and lost sight of innovation.

    Peloton

    A darling of the pandemic, the home fitness equipment company had struggled since return-to-office mandates started rolling in.
    In 2022, Peloton brought in former Spotify and Netflix executive Barry McCarthy to take over for founder John Foley, but he stepped down in May after the company announced yet another restructuring.
    In October, Peloton announced Peter Stern, a former Ford executive and Apple Fitness+ co-founder as its third CEO. Stern has a background in growing subscription-based services, and Wall Street is hopeful he’ll bring Peloton to profitability by cutting costs and focusing on its high-margin subscription revenue.

    Kohl’s

    In an aerial view, a customer walks in front of a Kohl’s store on November 26, 2024 in San Rafael, California. 
    Justin Sullivan | Getty Images

    Kohl’s CEO Tom Kingsbury is stepping down on Jan. 15, the off-mall department store said late last month, and he will be succeeded by Ashley Buchanan from crafting mecca Michaels.
    Kohl’s has seen its comparable store sales, a key metric for retailers, drop in each of the past 11 quarters, and its stock price slumped.

    WW International

    The weight loss company formerly known as Weight Watchers announced in September that CEO Sima Sistani would step down immediately.
    WW International has struggled, with shares falling more than 80% this year. It tired to reorient itself under Sistani’s tenure to include a platform that links customers with popular weight loss drugs.
    — CNBC’s Gabrielle Fonrouge and Amelia Lucas contributed to this report. More

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    Warren Buffett’s Berkshire Hathaway scoops up Occidental and other stocks during sell-off

    Warren Buffett poses with Martin, the Geico gecko, ahead of the Berkshire Hathaway Annual Shareholder’s Meeting in Omaha, Nebraska on May 3rd, 2024.
    David A. Grogan | CNBC

    Warren Buffett went on bit of a shopping spree in the stock market before Christmas, picking up shares of Occidental Petroleum among others during a swift December sell-off.
    Berkshire Hathaway purchased additional 8.9 million shares in the Houston-based energy producer for $405 million through transactions Tuesday, Wednesday and Thursday, pushing its stake above 28%, according to a regulatory filing late Thursday night.

    During the same time frame, the Omaha-based conglomerate also bought about 5 million shares of Sirius XM for around $113 million as well as about 234,000 shares of VeriSign for roughly $45 million. These two stakes are much smaller in size, so these transactions could be made by Buffett’s investing lieutenants Todd Combs and Ted Weschler.
    All told, Berkshire bought over $560 million worth of stocks over the last three sessions.
    The 92-year-old legendary investor appeared to have taken advantage of a broad market pullback that made these stocks much cheaper.
    Occidental shares have dropped more than 10% this month, bringing its 2024 losses to 24%. The energy company, once known for being founded by legendary oilman Armand Hammer, is Berkshire’s sixth-biggest equity holding. Buffett has ruled out a full takeover.

    Stock chart icon

    Occidental Petroleum

    The sell-off in Sirius XM has been more dramatic. The New York-based satellite radio company is currently in its six-day losing streak, falling 23% this month and 62% this year.

    Berkshire started hiking this bet after billionaire John Malone’s Liberty Media completed its deal in early September to combine its tracking stocks with the rest of the audio entertainment company. Now, Berkshire’s stake has risen to about 35%. SiriusXM has been grappling with subscriber losses and unfavorable demographic shifts.
    Internet name VeriSign has also had a rough year with its stock down 6% in 2024, significantly underperforming the tech sector. Berkshire first bought the tech stock in 2013 and hasn’t adjusted the stake in years. More