Chipotle Stock Jumps After Announcing 50-for-1 Stock Split
35 minutes ago
Chipotle Mexican Grill (CMG) jumped Wednesday after the fast casual restaurant chain announced that its board has approved a 50-for-1 stock split to make its shares more accessible to staff and a broader range of investors.
The Newport Beach, California-based company said late Tuesday it will seek shareholder approval for the split, the first in the restaurant chain’s 30-year history, at its annual meeting slated for June 6.
If successful, shareholders will receive an additional 49 shares for each Chipotle share held as of record date June 18, with the extra shares distributed after the closing bell on June 25. Shares are slated to begin trading on a post-split basis the following day.
Based on the stock’s Tuesday closing price of $2,797.56, the split would make the shares around $55.95 each. Chipotle shares, which have gained about 75% over the past 12 months, were up 4% at $2,909 Wednesday afternoon.
Temu Parent PDD Surges on Q4 Earnings Beat
1 hr 29 min ago
American depositary receipts (ADRs) of PDD Holdings (PDD), the parent company of a number of companies including online discount retailer Temu, rose Wednesday morning following a strong fourth-quarter earnings report.
PDD posted quarterly revenue of 88.88 billion Chinese yuan ($12.52 billion) and adjusted net income of 25.48 billion yuan ($3.59 billion), or adjusted earnings per share (EPS) of 17.32 yuan ($2.40), all well above analyst estimates compiled by Visible Alpha.
PDD more than doubled its revenue and net income over the same period in the prior fiscal year as Temu has grown substantially in the U.S., and Wednesday’s earnings report is PDD’s first since Temu aired multiple commercials during the Super Bowl, the biggest night of television in the U.S.
Jefferies analysts reiterated a “buy” rating on PDD in a note following the earnings report’s release, with a price target of $157.
ADRs of PDD were up about 2.4% late Wednesday morning. They are down about 10.5% so far this year, but have increased more than 65% in the last 12 months.
Boeing Rises as CFO Projects Cash Burn, Negative Margins Stemming From 737 Issues
2 hr 8 min ago
Boeing (BA) shares rose on Wednesday after the jet maker’s chief financial officer said the company would spend significantly more cash in the first quarter than previously expected as it grapples with the fallout of January’s Alaska Airlines incident and ensuing investigations.
Brian West told attendees of a Bank of America conference in London that he expected cash outflow to be between $4 billion and $4.5 billion in the first quarter, more than the company had previously forecast. He said that difference was unlikely to be made up for in the rest of the year, putting full-year free cash flow in the low single-digit billions.
The higher outflows, West said, will also delay the company’s goal of achieving annual cash flow of $10 billion sometime in 2025 or 2026.
West also said he expects Boeing’s commercial unit to report first-quarter operating margins of approximately negative 20%. Margins would improve throughout the year, he said, but would likely remain negative for the full year.
Boeing had decided to constrain 737 MAX production to less than 38 planes a month, West said, “and we’ll feel the impact of that over the next several months.”
The Federal Aviation Administration in January barred Boeing from expanding production of the 737 MAX amid an investigation of its safety practices following an incident in early January, in which a Boeing 737-9 MAX operated by Alaska Airlines lost part of its fuselage shortly after takeoff.
On the topic of Boeing’s possible acquisition of supplier Spirit AeroSystems (SPR), which was spun off from Boeing in 2005, West said both companies felt the acquisition would be “what’s best for safety and for quality for the aerospace industry.” He also insisted that any acquisition would be funded by cash and debt, not equity.
Intel Stock Rises on Up To $8.5B CHIPS Act Grant
2 hr 56 min ago
Intel Corp. (INTC) shares rose in early trading Wednesday after the White House announced that the chipmaker had been awarded up to $8.5 billion in CHIPS Act funding to expand production in the U.S.
“The announcement will support the construction and expansion of Intel facilities in Arizona, Ohio, New Mexico, and Oregon, creating nearly 30,000 jobs and supporting tens of thousands of indirect jobs,” the White House statement said.
Over the next five years, Intel expects its U.S. investments to exceed $100 billion, as it expands capacity and capabilities in those four states, the Commerce Department said in a separate statement.
Intel could also receive an additional $11 billion in loans from the CHIPS and Science Act, which was passed in 2022 and is meant to grow U.S. manufacturing of key industries like chipmaking amid growing geopolitical tensions with China.
Intel shares were up 0.7% Wednesday morning, but are down about 15% year to date.
Stocks Making the Biggest Moves in Early Trading
3 hr 36 min ago
Gains:
- PDD Holdings Inc. (PDD): Shares of the Chinese e-commerce company soared more than 16% after its fourth-quarter revenue and earnings blew past analyst estimates.
- Chipotle Mexican Grill Inc. (CMG): Shares of the fast-casual chain restaurant jumped 5% after it announced its board had approved a 50-to-1 stock split.
- Intel Corp. (INTC): Shares of the chipmaker rose about 3% after the White House awarded it $8.5 billion in CHIPS Act grants for the expansion of its U.S. manufacturing capacity.
Losses:
- Nasdaq Inc. (NDAQ): Shares of the stock exchange and trading services provider slid more than 4% after Bourse Dubai, its largest shareholder, said it would sell one-third of its stake for about $1.6 billion.
- Super Micro Computer Inc. (SMCI): Shares of the IT and computer products company fell more than 2% to about $890 after it priced its public offering, announced yesterday, at $875.
- Boeing Co. (BA): Shares of the jet maker fell nearly 2% after its CEO said its commercial plane unit’s operating profit margin would plunge to -20% in the first quarter amid fallout from January’s Alaska Airlines door plug incident.
Stock Futures Mixed Ahead of Fed Rate Decision
4 hr 43 min ago
Futures contracts connected to the Dow Jones Industrial Average were down about 0.1% in premarket trading on Wednesday.
S&P 500 futures were up little changed from Tuesday’s close.
Nasdaq 100 futures traded 0.2% higher about an hour before markets opened.
