Raphael Stevens

GameStop’s 2024 annual shareholder meeting was disrupted as servers crashed under overwhelming interest.
A customer service rep for ComputerShare, the company hosting the meeting, told CNBC its servers had apparently crashed because they weren’t accustomed to the amount of traffic the event had attracted.
The debacle comes amid a new meme stock craze that surged when Keith Gill — known as Roaring Kitty online — resumed posting on his social accounts after going dark for more than three years.

Traders work at the post where GameStop is traded on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., June 12, 2024. 
Brendan McDermid | Reuters

GameStop’s annual shareholder meeting was disrupted by computer problems Thursday, as servers crashed under overwhelming interest in the stream, a customer service representative for the company hosting the stream told CNBC.
The meeting, slated to begin at 11 a.m. ET, was hosted on ComputerShare, but when people tried to access the event, many received error messages that the page couldn’t load, according to posts made on social media site X and CNBC’s own attempts to access the event. 

According to a YouTube stream from an unaffiliated user purporting to reproduce the feed, the annual meeting was brought to order at 11:48 a.m. ET and was “immediately adjourned … due to technical difficulties that have prevented stockholders from accessing the meeting.” GameStop said it would provide an update “as soon as possible” as to when the event would be rescheduled, according to that feed.
GameStop couldn’t immediately be reached for comment.
When reached by phone, a customer service rep for ComputerShare told CNBC that it was seeing a “mass amount” of issues from people trying to access the meeting.
The rep said ComputerShare’s servers appeared to be unable to handle the amount of traffic the meeting had received and weren’t accustomed to the volume of accounts. They added that ComputerShare’s tech team was working to solve the issue and advised interested parties to attempt to log in “every 5 to 10 minutes.” 
The debacle comes amid a new meme stock craze that surged when Keith Gill — known as Roaring Kitty online — resumed posting on his social accounts after going dark for more than three years. Gill gained notoriety in the online trading realm for his big bets on the stock, spurring a frenzy among retail traders.

GameStop surged 14.4% on Thursday in another volatile session.

Loading chart…

GameStop announced Tuesday that it raised more than $2 billion in a recent at-the-market equity sale as the video game company took advantage of the revived meme rally. GameStop said it intends to use the money for general corporate purposes, which may include acquisitions and investments.
Traders have been closely monitoring Roaring Kitty’s positioning, as his active selling could knock the price of the stock.
In late afternoon trading Wednesday, a sell-off in GameStop shares intensified suddenly just as the trading volume spiked in the call options that Roaring Kitty owns. Call options give the buyer the right to buy a stock at a specified price within a specific period. They increase in value if the stock rises above the so-called strike price.
GameStop calls with a $20 strike price and expiration on June 21 traded a whopping 93,266 contracts Wednesday, more than nine times its 30-day average volume of 10,233 contracts.
The price of these contracts dropped more than 40% during the session, while the stock plunged 16.5%.
Roaring Kitty owned 120,000 contracts of those calls, according to a screenshot he shared Monday evening.
It is unclear if it was indeed Roaring Kitty behind the large volume, but options traders said he could be involved given he is such a large holder of those contracts.
Open interest on those calls, the total number of contracts for an asset that have not been settled, has declined to 111,818 contracts as of Thursday morning, already below Roaring Kitty’s original 120,000.
More than 47,000 such contracts have changed hands Thursday. More

CEO Carlos Tavares said Stellantis is aiming to fix issues that led to sales declines, bloated inventories and investor concerns.
At the company’s investor day, Stellantis executives also laid out how they plan to achieve ambitious financial targets amid industry and economic uncertainty.
Tavares said the automaker has achieved 8.4 billion euros ($9 billion) in cost reductions from the merger that created the company in January 2021.

Stellantis CEO Carlos Tavares speaks to media on June 13, 2024 following the company’s investor day at its North American headquarters in Auburn Hills, Mich.
Michael Wayland / CNBC

AUBURN HILLS, Mich. — Stellantis is correcting what CEO Carlos Tavares described Thursday as “arrogant” mistakes by himself and the company in the automaker’s U.S. operations that led to sales declines, bloated inventories and investor concerns.
Tavares said the convergence of three factors led to the problems: not selling down vehicle inventory fast enough; manufacturing issues, specifically with two unnamed plants; and lack of “sophistication in the way to go to market.”

“We had a convergence of three things that should have triggered, from me and nobody else, an immediate task force to address those things,” he told media Thursday after the company’s investor day at its North American headquarters. “When I’m saying that you are arrogant, I’m talking about myself. I’m talking about the fact that I should have acted immediately recognizing that the convergence of those three problems was there.”
During the investor day, Tavares and his top lieutenants broadly updated investors on the company’s operations and how Stellantis plans to achieve ambitious financial targets amid industry and economic uncertainty. The company also reconfirmed its 2024 guidance and vowed to continue to return capital to shareholders going forward.
Tavares did not elaborate on the manufacturing or go-to-market problems, but Stellantis’ inventory of vehicles leads major U.S. automakers as the company has held back incentives and cut marketing budgets. Stellantis’ U.S. sales were off 10% during the first quarter, leading to notable declines in revenue.
In May, Cox Automotive reported days’ supply of vehicles at Stellantis’ Jeep and Ram brands were more than twice the industry average of 76 days. Stellantis was the only major automaker to report a decline in U.S. sales last year; its market share dropped below 10%; and Hyundai, including Kia, outsold Stellantis for the first time ever.
While sales have been down, the company remains among the most profitable automakers globally. Since merging Fiat Chrysler and PSA Groupe to form Stellantis in 2021, the automaker’s adjusted operating income rose by 31% from 2021 through last year. Its adjusted profit margin is also up, rising 0.4 percentage point during that time frame, to 12.8%.

Stellantis reported a 12% decline in revenue in the first quarter, citing lower sales and foreign exchange effects, even as net pricing held firm. Its average vehicle transaction price in the U.S. was $57,266, according to Cox Automotive. That compares to an industry average of $48,389.

Cost reductions

As part of the event, Tavares said Stellantis has achieved 8.4 billion euros ($9 billion) in cost reductions from the merger of Fiat Chrysler and PSA Groupe that created the company in January 2021.
That amount is more than double initial expectations from when the merger was announced in 2019, and an increase from the updated 5 billion euros in expected reductions within five years of completion of the merger, which formed one of the world’s largest automakers.
Tavares said the largest reduction was achieved in the sharing and consolidation of engineering assets for the company’s vehicles, followed by purchasing.
Cost-cutting has been a critical mission of the veteran automotive executive. Other cost-saving measures have included reshaping the company’s supply chain and operations, as well as head-count reductions.

Since the merger was agreed to in December 2019, Stellantis has reduced head count by 15.5%, or roughly 47,500 employees, through 2023, according to public filings. Additional job cuts this year involving thousands of plant workers in the U.S. and Italy have drawn the ire of unions in both countries.
Several Stellantis executives described the cuts to CNBC as difficult but effective. Others, who spoke on the condition of anonymity due to potential repercussions, have described them as grueling to the point of excessiveness.

Investor day

The cuts are part of Stellantis’ strategic plan to increase profits and double revenue to 300 billion euros by 2030. The plan also includes targets such as achieving adjusted operating profit of more than 12% and industrial free cash flow of more than 20 billion euros.
“We are not looking for our way; we know where we are going,” Tavares said, referring to the automaker’s 2030 “Dare Forward” strategic plan.

Stellantis reconfirmed its 2024 guidance that included a double-digit adjusted operating income (AOI) margin, positive industrial free cash flow and at least 7.7 billion euros in capital return to investors in the forms of dividends and buybacks.
The automaker anticipates that Jeep will be a main driver for the company globally. Stellantis expects to grow sales of Jeep vehicles globally by 50% in the next three years, as the automaker attempts to leverage the quintessential American SUV brand for increased profits.
The trans-Atlantic automaker on Thursday said it will expand production and sales to roughly 1.5 million units by 2027. To do so, the company will grow its vehicle and powertrain offerings.
“The Jeep brand can be a local hero anywhere,” Tavares said. “We are going to reinforce the manufacturing footprint of Jeep.” More

Netflix has been reaching out to broadcasters in hopes of one of them producing the NFL games it agreed to stream on Christmas Day, according to people familiar with the matter.
Netflix has been in touch with the broadcasters that currently air NFL games, including Disney’s ESPN, Comcast’s NBCUniversal and Paramount Global’s CBS Sports, according to people familiar.
The NFL games — two slated for 2024 and at least one in the following years — are Netflix’s first real foray into live sports.

Brock Purdy #13 of the San Francisco 49ers prepares to take a snap in the first quarter against the Kansas City Chiefs0 during Super Bowl LVIII at Allegiant Stadium on February 11, 2024 in Las Vegas, Nevada. 
Michael Reaves | Getty Images

Netflix is trying to get ready for some football.
The streaming giant has been reaching out to broadcasters this week in the hopes of finding a partner to produce the NFL games it will air on Christmas Day this year, according to people familiar with the matter. Netflix will show two games on Christmas Day this year, followed by at least one matchup in both 2025 and 2026, the company announced last month.

This is Netflix’s first real foray into traditional live sports, driven by the company’s ambitions to grow its advertising tier. The company signed a deal earlier this year with WWE to be the home for its live “Raw” events, but Netflix dubbed that deal as “sports entertainment.” Unlike WWE, Netflix’s deal for Christmas NFL games doesn’t come with a full production team. That’s left the streamer looking for help.
Netflix has been in touch with the broadcasters that currently air NFL games, including Disney’s ESPN, Comcast’s NBCUniversal and Paramount Global’s CBS Sports, said the people familiar, who asked not to be named because the discussions have been private. Disney won’t produce the games because it already has college football obligations the same day, two of the people said.
In-depth discussions haven’t begun with the other broadcasters, but Netflix’s options may be somewhat limited.
Fox and CBS Sports already produce various games in different regions each week, which could make taking on additional games for Netflix a burden, some of the people said.
There’s also competition to consider.

Amazon inked a deal with NBCUniversal to produce its NFL games before its first season of “Thursday Night Football” in 2022, but there may be more resistance among current NFL partners to help out Netflix, according to people familiar with the matter. That’s because Netflix could be auditioning as a future long-term media rights partner for NFL games in place of a legacy media company, such as Paramount, Fox or NBC.
The NFL has an out clause in its current media contracts that allows it to select new media partners after the 2029-30 season.
Representatives for Netflix, the NFL, NBCUniversal, CBS, ESPN and Fox declined to comment.

Welcoming Netflix

Netflix announced its entry into the NFL in mid-May ahead of its Upfront presentation, when it tried to woo advertisers for its burgeoning ad-supported platform. Netflix said last month it has reached 40 million global active users for its advertising tier, which costs $6.99 per month in the U.S. and debuted in November 2022.
In May, co-CEO Ted Sarandos told CNBC that the NFL was the right fit for Netflix because it matched the streamer’s event strategy — effectively allowing Netflix to own the day. Netflix will pay the NFL roughly $75 million per game, CNBC previously reported.
For the NFL, Netflix represents the chance to reach a global, younger audience. There’s also the potential to lay the groundwork for Netflix to become a future bidder on a larger package of games.
The NFL signed long-term deals in 2021 with Disney, Paramount, NBCUniversal, Fox and Amazon for its five primary packages of games.
While there is some trepidation among current media partners to produce games for a potential rival, pressure from the league — and a hefty paycheck from Netflix — could convince broadcasters to strike a deal, according to people familiar with the matter.
“There aren’t that many players in the space who are capable of doing this at a level that you would want to trust when you’re launching as a new partner with a league as important as the NBA or the NFL,” said Shirin Malkani, co-chair of the sports industry group at law firm Perkins Coie, adding that the production side “can be a big hole for streaming partners.”
Netflix and the league are looking to mirror the partnership that Amazon’s Prime Video lined up with Comcast’s NBC Sports for “Thursday Night Football” games.
While NBC Sports’ Fred Gaudelli produced the 2022 season of “Thursday Night Football,” Amazon appointed Mark Teitelman, one of its own employees, to the role of lead game producer in 2023.
Amazon produces all of its pregame, halftime and postgame coverage, but NBC Sports handles the extensive production work that goes into an NFL game, and employs the vast majority of those workers.
Netflix is interested in finding a similar partner, according to people familiar with its plans.
If a deal can’t be made with one of the incumbents, Netflix could find other options with third-party producers. Endeavor Group Holdings’ IMG is the production partner for Major League Soccer, which is offered through Apple.
“It’s not easy to do an NFL game at a level that people are used to watching, which is a very high level and well produced,” said Jonathan Miller, chief executive of Integrated Media, which specializes in digital media investment. “But there’s a number of options out there that can pull it together without [Netflix] having a fully staffed sports division.”

Shifting to streaming

Amazon Prime Video was the first streamer to obtain exclusive rights to NFL games as the league pushed to broaden its media partners and have more streaming offerings to widen its audience.
Amazon reached its deal to carry “Thursday Night Football” in 2021 in conjunction with the rest of the media rights deals for the NFL — an 11-year media rights agreement worth over $100 billion, with an opt out clause at the seven-year mark.
Given the recent NBA media rights negotiations, which are beckoning top dollar from various media companies, many in and around the industry expect the NFL to exercise the clause and look for new partners.
Since the NFL has inked its deal, streaming services for Comcast, ESPN and Paramount have begun to simultaneously stream games, and in some cases, hosted games exclusively. Alphabet’s YouTube TV is also the new home of the “Sunday Ticket” package of games.
Sports, particularly the NFL, have been the glue holding the traditional TV bundle together — and have also proved to be a boost to streaming. NBCUniversal said in April its exclusive NFL wild-card game on Peacock helped to add, and then retain, more customers than expected.
The league has been vocal in its push to add more streaming partners in an effort to widen its audience.
That was the thinking behind the deal with Netflix to stream these Christmas Day games.
When the “Sunday Ticket” rights negotiations were underway, NFL Commissioner Roger Goodell told CNBC the longtime package offered only by DirecTV would move to streaming.
“I think that’s best for consumers at this stage,” Goodell said at the time.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC.

Don’t miss these exclusives from CNBC PRO More

Stellantis expects to grow sales of Jeep vehicles to roughly 1.5 million units globally by 2027.
It plans to expand its vehicle nameplates from 10 to 13 by 2027, Jeep CEO Antonio Filosa said Thursday during Stellantis’ investor day at its North American headquarters.
Jeep is expected to roll out the recently revealed Wagoneer S EV later this year, followed by a Jeep Wrangler-inspired off-road vehicle called the Recon.

 Jeep Wagoneer S Trailhawk EV concept
Michael Wayland / CNBC

AUBURN HILLS, Mich. – Stellantis expects to grow sales of Jeep vehicles globally by 50% in the next three years, as the automaker attempts to leverage the quintessential American SUV brand for increased profits.
The trans-Atlantic automaker on Thursday said it will expand production and sales to roughly 1.5 million units by 2027. To do so, the company will grow its vehicle and powertrain offerings.

“The Jeep brand can be a local hero anywhere,” Stellantis CEO Carlos Tavares told investors Thursday during Stellantis’ investor day at its North American headquarters. “We are going to reinforce the manufacturing footprint of Jeep.”
Jeep plans to expand its vehicle nameplates from 10 to 13 by 2027, Jeep CEO Antonio Filosa said. Those vehicles will include 27 different powertrain offerings – traditional internal combustion engine, hybrid, extended-range/plug-in hybrid electric and all electric. That’s up from 18 currently.   
“We want to grow,” said Filosa outlining three pillars of its strategy: customer choice of powertrains, increasing market coverage and globalization.
Much of the expected growth is targeted in North America, where the brand aims to top sales of 1 million units by 2027, up from roughly 700,000 last year.

Arrows pointing outwards

Jeep is expected to roll out the recently revealed Wagoneer S EV later this year, followed by a Jeep Wrangler-inspired off-road vehicle called the Recon. A new mainstream unnamed midsize SUV is planned for next year to replace the discontinued, gas-powered Cherokee SUV. Jeep is also planning plug-in versions of its current Wagoneer and Grand Wagoneer large SUVs.

A roughly $25,000 Jeep Renegade EV is expected by 2027, according to the company’s investor deck. Tavares announced such a vehicle last month, saying it would come to the U.S. “very soon.”

The New York Stock Exchange welcomes The Jeep Brand (NYSE: STLA) to the podium, on May 31, 2024. To honor the occasion, Antonio Filosa, Chief Executive Officer, joined by Lynn Martin, President, NYSE Group rings The Opening Bell®.

Offering a new EV for around $25,000 has long been a target for automakers such as Stellantis, Tesla and others. The importance of such a vehicle has grown more apparent as Chinese automakers such as BYD and Nio grow their sales of less-expensive EVs outside of China.
Through the first quarter of this year, Jeep’s sales totaled 31,750, up 47% from the same period a year earlier. The brand sold nearly 643,000 vehicles last year, down 6% from 2022. Jeep represented 42% of Stellantis’ U.S. sales in 2023.

Don’t miss these exclusives from CNBC PRO More

Tyson Foods has suspended its CFO, John R. Tyson, after he was charged with driving while intoxicated in Arkansas.
Tyson was previously arrested two years ago for falling asleep in the wrong house.
He is the great-grandson of the meat giant’s founder, John W. Tyson.

John R. Tyson speaks on stage during The Fight for Food: Value Chains and Partnerships at The 2022 Concordia Annual Summit in New York on September 21, 2022.
Leigh Vogel | Getty Images

Tyson Foods said on Thursday it has suspended its chief financial officer, John R. Tyson, after he was charged with driving while intoxicated in Arkansas. The company said it has appointed Curt Calaway as its interim CFO.
Tyson, 34, was arrested at 1:32 a.m. on Thursday and released nine hours later, according to Washington County Detention Center. Tyson Foods is headquartered in Springdale, Arkansas.

In 2022, two months after being named CFO of the meat giant, Tyson was arrested after becoming intoxicated and falling asleep in the wrong house. A week later, he apologized to investors for the incident on the company’s earnings call. Tyson plead guilty to the charges.
Tyson is the son of the company’s chairman, John H. Tyson, and the great-grandson of founder John W. Tyson. He joined the company in 2019 after working in investment banking, private equity and venture capital. His appointment raised some eyebrows on Wall Street. More

Ford Motor is ending a controversial electric vehicle dealership program that initially asked store owners to invest upward of $1 million to sell EVs.
The “EV-certified” program was announced in September 2022 by Ford CEO Jim Farley in response to high demand for the vehicles.
Amid slower-than-expected demand, Ford will open EV sales to all of its dealers.

An electric Ford truck is displayed during the Electrify Expo D.C. in Washington, D.C., on July 23, 2023.
Nathan Howard | Getty Images

Ford Motor is ending a controversial electric vehicle dealership program that initially asked store owners to invest upward of $1 million to sell EVs.
The “EV-certified” program was announced in September 2022 by Ford CEO Jim Farley amid high demand for the vehicles, low supplies and industry-wide optimism for all-electric cars and trucks. That optimism, however, has not panned out as expected.

EV sales for Ford and other automakers are growing but at a far slower pace than many expected. That’s led to automakers delaying or canceling future electric vehicles and investments.
“The world has changed,” Marin Gjaja, chief operating officer of Ford’s Model E electric vehicle business, said Thursday during a media briefing. “The growth has slowed down.”
Gjaja said the Model e Dealership Program, which included about half of Ford’s 2,800 U.S. dealers, “is being sunset” as the market undergoes changing conditions and amid conversations with dealers. The company had faced lawsuits from dealers over the program.
Instead, Ford will open EV sales to all of its dealers in an attempt to grow sales of its all-electric cars and trucks. 
“It allows us to open EV sales and service to more dealers,” Gjaja said. “We think it’s going to help us grow our sales.”

Dealers will need to make some investments for charging, training and other EV-related expenses, but not as much as they did under the prior program, which included expected investments of between $500,000 and $1.2 million.
Gjaja said those initial estimates were high. He said dealers who participated in the full program invested about $600,000 on average.

Don’t miss these exclusives from CNBC PRO More

Abercrombie & Fitch has transformed itself from a dying mall brand into a Wall Street darling after spending years revamping its product assortment, overhauling its supply chain and rebranding as an inclusive retailer. 
Shares of the apparel company have surged over the last year as it posted quarter after quarter of sales growth and profits that consistently topped Wall Street’s expectations. 

Under the direction of CEO Fran Horowitz, Abercrombie has become one of the biggest winners in retail, but its turnaround was years in the making and far from an overnight success. 
Over the last seven years, Horowitz changed Abercrombie’s product assortment and moved the company away from loud branding and sex appeal, critical components of the retailer’s past playbook. 
She also overhauled the retailer’s store footprint by closing hundreds of locations and changing the shops to look more modern, inviting and better suited to its new target customer. 
Perhaps most importantly, Abercrombie rebranded itself into a more equitable retailer after it earned a reputation for racism, toxicity and exclusivity. 
To learn more about Abercrombie’s comeback and what’s ahead for the retailer after a year of meteoric growth, check out the video above. More