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Facebook's Big Layoffs, Again

Facebook's Big Layoffs, Again

Today is Tuesday, March 7, 2023.

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Facebook's Big Layoffs, Again

Facebook parent Meta Platforms (Nasdaq: META) is reportedly gearing up for another massive layoff.

Details: According to a Bloomberg report late Monday, Meta Platforms will cut thousands of employees as soon as this week. The company has not commented on the report yet.

Background: In November, Facebook conducted “large-scale layoffs” that resulted in a workforce reduction of 11,000 (about 13% of the company). These layoffs come as other big tech companies cut staff due to concerns with the economy.

Final Thoughts: Despite the economic concerns, Meta is having a comeback. The stock is up 48% so far this year.

Notables

Notable Earnings Today: Dick's Sporting Goods (NYSE: DKS), Sea Limited (NYSE: SE), CrowdStrike (Nasdaq: CRWD), SoundHound AI (Nasdaq: SOUN), Squarespace (NYSE: SQSP), Casey's General (Nasdaq: CASY), Autolus Therapeutics (Nasdaq: AUTL), Carparts.com (Nasdaq: PRTS), Ranger Energy Services (NYSE: RNGR), Zymeworks (Nasdaq: ZYME), Dole (NYSE: DOLE), Stitch Fix (Nasdaq: SFIX), Thor Industries (NYSE: THO), W&T Offshore (NYSE: WTI), Ferguson (NYSE: FERG), Maxeon Solar Technologies (Nasdaq: MAXN), First Watch Restaurant Group (Nasdaq: FWRG), Rigel Pharmaceuticals (Nasdaq: RIGL), Canaan (Nasdaq: CAN), Marinus Pharmaceuticals (Nasdaq: MRNS), Latham Group (Nasdaq: SWIM).

Notable IPOs Today: Ultimax Digital, Inc. (Nasdaq: NFTU), NAVA HEALTH MD, LLC (Nasdaq: NAVA), US Treasury 6 Month Bill ETF (Nasdaq: XBIL).

Notable Equity Crowdfunding Campaigns Ending Today: ScanHash (Netcapital), Petrolhead Cafe (Mainvest).

Notable Economic Events Today: Fed Chair Powell Testifies to Senate (10:00 a.m. ET), EIA Short-Term Energy Outlook (12:00 p.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).

Rivian's Senior Notes Flop

Photo by Wes Hicks / Unsplash

Rivian Automotive (Nasdaq: RIVN) dropped 5.84% in after-hours trading on Monday after the electric vehicle maker rolled out a green convertible senior note offering.

Details: The offering of gree senior notes totaled $1.3 billion. Purchasers will also have the option to buy an additional $200 million in notes. Proceeds from the notes will be used to finance future green projects for the company.

Background: It’s been tough for Rivian lately. The company announced last week in its financial earnings that it only expects to produce 50,000 vehicles this year, which is lower than what analysts expected. Investors were not happy with that announcement.

Stock Price: Shares of Rivian are down 59% in the last 12 months, including a 13% drop in the last 30 days.

Final Thoughts: While the stock is cheaper in the last year, the lower production target is a stain on Rivian’s short-term outlook.

Bitcoin Stuck Due to Silvergate Fiasco

The price of Bitcoin ticked up slightly on Monday, but it is down for the past week due to issues with Silvergate Capital.

Background: Last week, Silvergate Capital closed its crypto payments network as the financial company faces the risk of collapse. This marks another blow for the volatile crypto industry, which is still reeling from the FTX scandal in 2022.

Final Thoughts: Despite the recent Silvergate fiasco, Bitcoin is up about 25% so far in 2023. As bad as Silvergate has been, Bitcoin seems to be fine. However, for some traders, Bitcoin is still seen as a risky asset.