It was a long day for some of retail’s favorite stocks; let’s quickly recap.
AMC shares fell 11% after reporting another net loss and revenue below analyst expectations. However, the company is making another financial engineering bet, opting to list preferred equity shares on the NYSE under the symbol “APE.”
They picked the appropriate symbol because, quite frankly, this news is BANANAS. đ
The new class of shares carries the same voting rights as the existing common shares but is a creative way for the firm to raise funds after investors shot down its proposal to issue more common shares last year. After issuing a preferred dividend of 517 million APE units later this month, it will still have about 4.5 billion units remaining that it could sell to raise funds.
Once again, the company’s rabid fanbase is indirectly giving it more time to stage a turnaround of its struggling underlying business. â
Whether or not it will work remains to be seen, but investors are not cheering the move in the after-hours session. đ
Beyond Meat shares came under pressure after the company slashed its revenue forecast and cut its workforce by 4%. It’s citing inflation, rising interest rates, and recession concerns – AKA the challenging macroeconomic environment we’ve heard from many other companies, though bears argue that their product is just not that great. đ
Rocket Companies came crashing back to earth after missing earnings and revenue expectations. The slowing housing market continues to take a toll on the company and its competitors. đ
Finally, on a more positive note, DoorDash shares dashed higher after the company delivered better than expected revenue numbers but missed on earnings. It also noted that it expects a softer consumer spending environment through the rest of the year as inflation and other macroeconomic factors weigh on consumers. As a result, those factors could drive results below expectations.
For now, investors appear to be looking past that warning toward the 30% YoY revenue growth, which the company attributed to increased order frequency and more monthly active users. đ