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Last Week’s Highlights
Starbucks workers prepare for a strike
More than 3,000 Starbucks employees across over 150 stores in the United States have announced their intention to go on strike due to a controversy regarding Pride Month decorations. The Starbucks Workers United Union confirmed that in several stores, some Starbucks managers have banned or removed Pride Month decorations and flags. The company has denied these allegations and stated that it continues to promote the celebrations as long as safety guidelines are followed. However, in addition to the negative reaction from some conservatives towards companies supporting the LGBTQ+ community, the strikes, according to the union, also aim to pressure the company to improve wages and working conditions. The company is facing complaints filed with the National Labor Relations Board regarding alleged illegal practices.
CarMax beats estimates
CarMax Inc. reported that vehicle affordability remains a challenge due to high-interest rates and low consumer confidence. Despite this, the company managed to achieve higher quarterly profits thanks to implemented cost cuts. The company’s stocks rose by 8.8% as they also reported better-than-expected earnings in the first quarter. Although prices of used cars have recently declined, retailers have faced inflationary pressures and an increased supply of new vehicles, deterring consumers from buying second-hand cars. CarMax has reduced expenses by suspending hiring and halting share repurchases to cope with the current situation. While it exceeded investors’ low expectations, price, and volume trends are expected to continue challenging due to higher interest rates. In the quarter ended on May 31st, CarMax recorded an adjusted profit of $1.16 per share and net revenues of $7.69 billion, surpassing analysts’ estimates.
Coming Up This Week
Canopy Growth’s disappointing results
Canopy Growth Corp.’s stocks have experienced a decline following the release of disappointing fourth-quarter results. Both earnings per share and revenues fell below analysts’ expectations. The company also faced financial issues in its sports beverage division, leading to management changes and legal considerations. Despite this, Canopy Growth remains optimistic with a promising revenue increase in BioSteel and has implemented a transformation plan to reduce costs and enhance efficiency. Although analysts recommend selling Canopy Growth stocks, the average target price suggests a potential upside of 58.2%.
Apple may launch credit card in India
According to reports, Apple is exploring the possibility of launching its credit card and Apple Pay in India, following its recent foray into the country with the opening of its first retail store. It is said that Apple CEO Tim Cook met with the CEO and MD of HDFC Bank earlier this year, indicating an interest in establishing a partnership for the credit card launch. Additionally, the company has been in discussions with the Reserve Bank of India and the Central Bank of India. Apple is also exploring the possibility of introducing Apple Pay in the Indian market and has held discussions with the National Payments Corporation of India. Given Apple’s significant revenue growth in India in recent years and its interest in making the country a key manufacturing hub, analysts are optimistic about Apple’s stock, with a strong buy consensus rating.