Best Buy Co.
American consumers are cutting back. U.S. retail giants said shoppers pulled back on apparel and electronics while continuing to spend on necessities like groceries. Best Buy and
said shoppers are behaving “as if they are already in a recession.” Best Buy shares slipped 2.1% Thursday.
Union Pacific Corp.
A new leader will take the helm at Union Pacific. The U.S.’s largest freight operator on Feb. 26 said it plans to name a new chief executive this year. The announcement came hours after a major shareholder—New York hedge fund Soroban Capital Partners—publicly urged the company’s board to oust
from the job, arguing that the company has underperformed on Mr. Fritz’s watch. Freight railroad operations have come under scrutiny after a
Norfolk Southern Corp.
train carrying hazardous chemicals derailed in East Palestine, Ohio, last month. Union Pacific shares gained 9.4% Monday.
Eli Lilly will slash the cost of its insulin drugs. Facing pressure to curb diabetes-treatment costs, the drugmaker will cut the list prices for its most commonly prescribed insulin products by 70% and take other steps to make it easier for patients to afford them. Drugmakers substantially raised the prices for their insulin products during the 2010s, and they now cost hundreds of dollars a month. Because of the high prices, people without insurance or with high-deductible health plans can have trouble affording the products, forcing them to ration use. Eli Lilly shares added 0.9% Wednesday.
Wendy’s plans to serve up more sales. The fast-food chain said it is targeting systemwide sales growth in the mid-single digits through 2025. The long-term guidance comes as Wendy’s begins a restructuring plan to streamline costs amid economic uncertainty.
said earlier this year that it planned to make difficult decisions about potential changes to its corporate staffing levels by April, as part of a strategic plan for the company. Demand has generally held up for fast-food restaurants—though some companies, such as
Domino’s Pizza Inc.,
have noted a pullback in spending. Wendy’s shares increased 1.1% Wednesday.
Shareholders got a look under the hood at Tesla’s pricey growth ambitions. During an investor-day event, Chief Executive
and other leaders on Wednesday discussed plans for the electric auto maker to become the world’s largest car maker by volume, selling 20 million vehicles a year by 2030, up from around 1.3 million in 2022. Achieving that and other goals would require Tesla to spend up to $175 billion, including around $28 billion already spent, Chief Financial Officer
said. Meanwhile, the company slashed vehicle prices earlier this year amid concerns about sagging demand. Tesla shares slumped 5.9% Thursday.
Salesforce sold investors on its 2023 predictions. The software maker’s stock jumped 11% Thursday after the company forecast increasing profitability in its just-started fiscal year as it faces pressure from activist shareholders over its spending. Salesforce also projected revenue that would surpass analysts’ forecasts. In a call with analysts, Chief Executive
said Salesforce is disbanding its M&A committee to reflect the company’s new focus on efficiency. The company is struggling with a sales slowdown, and at least five activist investors have taken stakes in the company and are lobbying management for change.
Silvergate Capital Corp.
Will Silvergate Capital survive the crypto collapse? Silvergate, one of the digital-currency market’s top banks, on Wednesday said that it was at risk of being “less than well-capitalized” and was evaluating its ability to continue doing business. A raft of crypto companies, including
Coinbase Global Inc.,
cut ties with the bank the next day. After crypto exchange FTX’s sudden implosion last November, many investors have fled the industry. Silvergate was recently forced to sell assets at a steep loss after a flurry of customers made a run on the bank, withdrawing billions of dollars of deposits. Silvergate shares plummeted 58% Thursday.
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