Streetbeat News

Labor Issues

PTON

Leslie Berland has resigned from her position as Chief Marketing Officer at Peloton Interactive, effective December 31, 2023, according to a filing. The Wall Street Journal reported that Berland has been hired as the new Chief Marketing Officer for Verizon Communications.

Portfolio Pulse from Benzinga Newsdesk

December 06, 2023 | 9:58 pm

SBUX

Starbucks Corp (NASDAQ:SBUX) ended a 13-day losing streak, its longest since 1992, with a slight uptick in stock price. The decline was attributed to a 'material decline' in November sales, as noted by JPMorgan Chase analysts, amid boycotts over the company's alleged support of Israel in its conflict with Palestine. The boycotts were fueled by a statement from the Starbucks Union supporting Palestine and a subsequent lawsuit by Starbucks against the union. The hashtag #boycottStarbucks has over 50 million views on TikTok. Additionally, the Starbucks Workers United union organized a walkout during a major promotion. Starbucks' market cap has dropped by over $10 billion, with the stock down over 10% since Nov. 17.

Portfolio Pulse from Aaron Bry

December 06, 2023 | 9:53 pm

YTEN

Yield10 Bioscience announced the approval of a full or partial furlough for about 65% of its workforce, with most affected employees based in the company's U.S. facility, as per their SEC 8K filing on Nov. 30.

Portfolio Pulse from Benzinga Newsdesk

December 06, 2023 | 9:35 pm

BILL

Needham analyst Scott Berg reiterated a Buy rating on BILL Holdings, Inc (NYSE:BILL) with a $100 price target, following the company's announcement of a workforce reduction by ~15% and the closure of its Sydney office. The restructuring aims to focus on key priorities and improve profitability amid macro-related headwinds. The company expects to incur $29 million-$35 million in charges, with the majority in 2QF24. Berg sees a 300bps increase in FY24 operating margin to 13% and raises earnings estimates to $2.11 from $1.81. BILL's position in the electronic B2B payment space and high retention rates are seen as growth drivers.

Portfolio Pulse from Nabaparna Bhattacharya

December 06, 2023 | 7:09 pm

WMT

Walmart CEO Doug McMillon stated that hiring and wage pressures have eased, with a more normalized environment and lower turnover. Wages continue to rise but at a slower rate. AI is shifting employee roles, reducing the need for physically intensive tasks. Walmart, the nation's largest private employer, raised its minimum wage to $14, while competitors had already moved to $15. The labor market cooling is supported by government data showing a drop in job openings. McMillon expects a shift in workforce roles due to increased automation and AI, with the same number of employees but in different positions.

Portfolio Pulse from Benzinga Newsdesk

December 06, 2023 | 5:57 pm

RBLX

RIOT

SPOT

WDC

Spotify Technology SA (NYSE:SPOT) is undergoing a significant restructure, including a 17% reduction in headcount, due to high costs and negative EBITDA, EBIT, and Net Income Margins. Despite positive gross margins, the company's cost structure has led to this decision. Benzinga identified Riot Platforms Inc (NASDAQ:RIOT), Western Digital Corporation (NASDAQ:WDC), and Roblox Corp (NYSE:RBLX) as companies with similar financial challenges, including high costs and negative margins beyond gross profit.

Portfolio Pulse from Surbhi Jain

December 06, 2023 | 5:27 pm

QQQ

SPY

TLT

Recent data indicating a cooling U.S. labor market has raised concerns among investors ahead of the November jobs report and the upcoming Federal Open Market Committee meeting. Job openings decreased and ADP reported lower-than-expected private employment growth. Economists expect non-farm payrolls to rise to 180,000 with a steady unemployment rate and a slight increase in average hourly earnings. The jobs report could influence market expectations of Federal Reserve rate cuts in 2024, affecting ETFs like QQQ, SPY, and TLT.

Portfolio Pulse from Piero Cingari

December 06, 2023 | 3:51 pm

IGMS

SNY

IGM Biosciences Inc (NASDAQ:IGMS) is shifting its focus towards treating colorectal cancer and autoimmune diseases, discontinuing all blood cancer-related studies. The company plans to file an IND application in 2024 for IGM-2644, aimed at treating autoimmune diseases. As part of the strategic change, IGM Biosciences will stop the development of several product candidates and reduce its workforce by 22%, extending its cash runway into Q2 2026. The company will maintain its collaboration with Sanofi SA (NASDAQ:SNY) on oncology, immunology, and inflammation products.

Portfolio Pulse from Vandana Singh

December 06, 2023 | 3:10 pm

SPY

The ADP Nonfarm Employment Change for November reported 103K jobs added, which is below the estimated 130K. This could indicate a slower growth in employment, potentially affecting investor sentiment and market performance.

Portfolio Pulse from Benzinga Newsdesk

December 06, 2023 | 1:15 pm

AYRWF

CCHWF

CRLBF

VRNOF

Workers at Verano's Zen Leaf dispensary in Chicago have voted to join Teamsters Local 777, aiming for better working conditions and fair wages. This follows successful unionization at other Zen Leaf locations in Illinois. The Teamsters' unionization efforts in the cannabis industry are gaining momentum, with recent successes at companies like Ayr Wellness, The Cannabist Company, Cresco Labs, Grassdoor, and Strawberry Fields across various states.

Portfolio Pulse from Nina Zdinjak

December 06, 2023 | 1:01 pm