Starbucks’ CEO Makes Pledge
Plus, SVB's new potential buyer.
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Starbucks’ CEO Makes Pledge
Starbucks (Nasdaq: SBUX) held its investor day on Thursday as the company’s new CEO, Laxman Narasimhan, set his vision for the organization.
Details: Narasimhan, who assumed the role of CEO on Monday, discussed the company’s plan “to reinvigorate culture” in Starbucks. The CEO said that he will work half a day each month in stores.
Background: Starbucks is going through some big changes. Hundreds of Starbucks have unionized and workers across the country went on strike this week. It is clear that Starbucks needs to address this labor issue.
Also: Shareholders voted on a proposal on Thursday about an assessment of the company’s labor practices. The results of the vote will be announced in a few days.
Stock Price: Starbucks is up 12% in the last 12 months but is down 3% in the last 30 days.
Final Thoughts: Between the push for unionization by the workers and a new CEO, it’s a different era for Starbucks. Those are big shoes that the new CEO is filling and investors want Starbucks to grow this year.
Notable Earnings Today: Express (NYSE: EXPR), Impel Neuropharma (Nasdaq: IMPL).
Notable IPOs Today: Oak Woods Acquisition Corporation Unit (Nasdaq: OAKUU), Cetus Capital Acquisition Corp. Class A Common Stock (Nasdaq: CETU), YanGuFang International Group Co., Ltd. Ordinary Shares (Nasdaq: YGF), Chanson International Holding Class A Ordinary Shares (Nasdaq: CHSN), Star Holdings Shares of Beneficial Interest When Issued (Nasdaq: STHOV).
Notable Equity Crowdfunding Campaigns Ending Today: Kidskin (StartEngine), TomBot (Republic), Hook & Irons Golf and Social Lounge (Mainvest), Besse Custom Creations (Honeycomb), ThermaSat (Netcapital), Nicole Comis Coaching (Honeycomb).
Notable Economic Events Today: Core Durable Goods Orders (8:30 a.m. ET), Manufacturing PMI (9:45 a.m. ET), S&P Global Composite PMI (9:45 a.m. ET), Services PMI (9:45 a.m. ET).
SVB's Private Bank Gets a Potential Buyer
Shares of Citizens Financial Group (NYSE: CFG) jumped 2.01% in after-hours trading on Thursday thanks to a report that said the large regional bank might make a big acquisition.
Details: According to a Reuters report, Citizens is going to submit an offer in the auction of SVB Financial’s private banking business. Citizens did not comment on the report. Banks that want to submit a bid have until today to reach out to the Federal Deposit Insurance Corporation (FDIC).
Background: With SVB collapsing a few weeks ago, other regional banks have been rumored to make a play at acquiring what’s left of the business.
Stock Price: Shares of Citizens are down 38% in the last 12 months.
Final Thoughts: Citizens has done a lot to please investors lately, including a stock buyback that was announced last month.
Crypto Survives Fed Hike Rate
A day after the U.S. Federal Reserve raised interest rates, cryptocurrencies rebounded on Thursday.
Details: Bitcoin was up by 3%, Ethereum was up by 4%, XRP jumped by 4%, Cardano increased by 3% and Dogecoin went up by 5%.
Final Thoughts: Despite being a volatile asset, cryptocurrency is in the middle of staging a big comeback in the first quarter of 2023.
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Trends to Watch
Still Rich: Jack Dorsey’s Wealth Tumbles $526 Million After Hindenburg Short (Bloomberg)
Driving Sales: How Ford plans to turn a profit on EVs in under four years (CNBC)
So Confusing: The Fed’s New Strategy Leaves More Questions Than Answers (Barron’s)
Mixed: Relativity Space launched its 3D-printed rocket, but failed to reach orbit (Engadget)
About Time: Still trying to quit that gym membership? The FTC is proposing a rule that could help (NPR)
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