Boeing Issues Layoff Notices To Over 400 Aerospace Union Workers Amid Financial Struggles
Boeing Co. BA has issued layoff notices to over 400 members of its professional aerospace labor union, as part of the company’s ongoing efforts to recover from financial and regulatory challenges.
What Happened: The layoff notices were sent out last week to members of the Society of Professional Engineering Employees in Aerospace (SPEEA), reported AP News. The affected workers will remain on the payroll through mid-January.
In October, Boeing announced plans to cut 10% of its workforce, approximately 17,000 jobs, in the coming months. The company’s CEO, Kelly Ortberg, stated that the company must “reset its workforce levels to align with our financial reality.”
See Also: Elon Musk’s Hedgehog Meme Coin ‘SHRUB’ Outpaces Dogecoin, Shiba Inu Gains, Surges 3,000% In A Week
The layoffs have impacted 438 members of the SPEEA union, with the local chapter representing 17,000 Boeing employees, primarily based in Washington, with some in Oregon, California, and Utah. The affected workers will receive career transition services, subsidized health care benefits for up to three months, and severance pay.
Why It Matters: Boeing, based in Arlington, Virginia, has been grappling with financial and regulatory issues since an incident involving an Alaska Airlines plane in January. Following the incident, the Federal Aviation Administration has limited the production of the 737 MAX to 38 planes per month, a target Boeing has yet to achieve.
The recent layoffs are part of Boeing’s broader efforts to navigate its financial challenges. The aerospace giant has been grappling with a series of setbacks, including a tough market and regulatory issues following a plane fuselage incident in January.
Earlier this month, Boeing’s unionized Machinists ended a seven-week strike by accepting a new contract with significant pay increases. This deal, supported by the Biden administration and facilitated by Acting U.S. Secretary of Labor Julie Su, marked a significant development in Boeing’s labor relations.
Price Action: Boeing stock ended 1.48% higher at $140.19, according to data from Benzinga Pro.
Image Credit: Shutterstock
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Toyota Slams California's 'Impossible' EV Mandate, Calls For National Regulation To Protect Consumers And Keep Manufacturing Viable
Toyota Motor North America has weighed in on California’s ambitious new electric vehicle (EV) mandates, calling the goals “impossible” given the slow growth of EVs in America. Currently, only 9% of U.S. car buyers choose EVs and in many states, the adoption rates of EVs are even lower.
Don’t Miss:
However, the California Air Resources Board (CARB) has set an ambitious mandate that 35% of all light-duty vehicle sales be zero-emission vehicles (ZEVs) or plug-in hybrids by 2026. The ultimate target is that by 2035, every new car sold in the state should be zero-emission.
As cited by CNBC, Toyota Chief Operating Officer Jack Hollis questioned the feasibility of such a timeline, saying, “I have not seen a forecast by anyone – government or private – that says that number is achievable.”
Toyota fears the mandate could force automakers to ignore what customers need, especially in markets where electric vehicles are less popular. Hollis suggested that pushing automakers to meet these requirements without adequate market support could limit consumer choices.
Trending: With over 7.8K investors including Meta, Google and Amazon Execs – this AI start-up’s valuation has skyrocketed from $5 million to $85 million in just three years. Be an early investor with just $1,000 for only $0.50/share today before the offer closes next week!
California has traditionally taken a strict stance on emissions, setting standards more stringent than those required nationally under a federal waiver. This has led to a split market: some states follow California’s rules, while others follow national regulations.
Toyota, however, calls for a single national standard, arguing that a uniform rule for all states would help automakers more easily produce cars. “We would always want a 50-state rule because that way we can treat all customers, all dealers, equally,” Hollis explained.
See Also: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built and big plans to solve housing – you can become an investor for $0.80 per share today.
The emissions standards debate has sparked significant discussion throughout the industry. Hollis said California’s mandate could “limit consumer choice” by reducing the number of models available. Some politicians, including Democrat Elissa Slotkin, have echoed similar points, saying, “What you drive is your call, no one else’s.”
Dogecoin 'Repeating Its Historical Pattern,' Says Analyst: Meme Coin Set To Touch $3 By Trump's Inauguration Day 2025
Analyst John-Burr sees Dogecoin (DOGE/USD) price hitting the $3 mark by Jan. 20 and even touching $20 in the future, as per his analysis.
What Happened: “It’s eerie how DOGE is repeating its historical pattern,” Burr wrote on TradingView. “…there seems to be some temporal proximity to the Inauguration Day and the next bullish movement.”
Burr predicts Dogecoin to touch $3 by Inauguration Day. However, the analyst also acknowledged the possibility that he could be wrong, given the below-a-dollar price of Dogecoin now.
“But I am okay with that because I believe that this is the beginning of the bull run. I don’t care about the specific timing,” he wrote.
While some estimate Dogecoin to touch $40 by next year, the more skeptical won’t predict it to go over $3, Burr said while adding that he believes Doge could touch $20. However, he is not sure.
“I don’t know, tbh. The market is bigger than me, no matter the size of my portfolio, brain, or pedigree. Nevertheless, I bet my money on what I believe is the historical pattern,” Burr wrote.
Why It Matters: Doge has been rising following Donald Trump‘s landslide victory in the Presidential elections. Doge prices are up by over 160% over the past month and by over 50% over the past seven days, likely owing to expectations of pro-crypto regulations under Trump.
Trump has also named billionaire Dogecoin supporter Elon Musk to spearhead the Department of Government Efficiency together with former Republican presidential candidate Vivek Ramaswamy. The department’s acronym DOGE, coupled with Musk’s support for Doge and Trump’s promise of establishing the U.S. as the “crypto capital of the planet” during his campaign this year likely drove the rally.
Price Action: At the time of writing, DOGE was down 7.42% in the last 24 hours. However, the cryptocurrency has gained over 50% in the past week, according to Benzinga Pro data.
Photo: Executium via Unsplash
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Have $500? 3 Absurdly Cheap Stocks Long-Term Investors Should Buy Right Now
With the market surging following the presidential election and the S&P 500 trading near an all-time high, finding bargains in the market isn’t the easiest task. However, that doesn’t mean they are not out there.
Let’s look at three bargain stocks investors can buy right now.
Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »
Sirius XM Holdings (NASDAQ: SIRI) owns its namesake satellite radio service, the Pandora streaming music app, and a podcast network. It recently became a fully independent company following a transaction with Liberty Media.
The company has a number of opportunities in front of it. This includes letting users build a plan starting at $9.99 a month and adding extras like sports or talk only if they want. It said this will help it move away discounted pricing and bring in more users.
In addition, it is looking to form new automotive partnerships to help bring in customers. It just added Toyota Motor to its roster and now has nine original equipment manufacturers (OEMs).
The company is also expecting to see a big decrease in satellite related capital expenditures (capex) after this year with it declining to near zero in 2028. Together with reducing annual costs by $200 million, it should help bolster free cash flow and help the company reduce leverage.
Trading at a forward price-to-earnings (P/E) ratio of about 8.6 based on 2025 analyst estimates and an enterprise value (EV)-to-EBITDA ratio of about 7.2 as of this writing, Sirius XM’s stock is attractively valued.
While the company is seeing some ad market softness impacting its Pandora and podcast businesses, it is a fairly steady business that generates solid cash flow. With the Liberty Media transition behind it, it should become more focused so it can deliver solid value to its shareholders moving forward.
A cheap valuation combined with deleveraging opportunities makes the stock a buy.
One of the biggest gainers from the recent election, Geo Group (NYSE: GEO) is still very attractively valued given the opportunities in front of it trading at a forward P/E of under 16 based on 2025 estimates and a forward EV/EBITDA of 11.
Known as a private prison company, one of Geo Group’s biggest opportunities lies in the Intensive Supervision Appearance Program (ISAP), where it provides electronic monitoring of immigrants within the program.
ISAP has been a headwind for the company; participation in the program has fallen due to a lack of a government budget. However, in the past there have been bills to greatly expand the program. Under the Trump administration and with Republicans looking to have control over the House and Senate as of the time of this writing, more funding is expected to go toward immigration.
Celsius Keeps Taking Market Share as Its Revenue Falls: Here's How That's Possible
The energy drink space is big and filled with many upstart players. One that has risen to prominence in recent years is Celsius (NASDAQ: CELH). The company was able to differentiate itself in the crowded space by making its portfolio sugar-free and by claiming its drinks are thermogenic, allowing drinkers to burn calories even while resting.
In short, Celsius has quickly skyrocketed to the No. 3 spot in the U.S. energy drink industry by market share, trailing only Red Bull and Monster Beverage.
Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free »
It’s unclear whether Celsius will ever be able to further climb the ranks of this market — Monster and Red Bull still have sizable leads at this point. But the company is still taking market share. As of its third-quarter report, management believes it has 12.1% market share, up from 11.4% earlier this year.
It’s here that astute observers might raise an eyebrow. How can Celsius possibly be taking market share when its Q3 revenue was down a painful 31% year over year, which included a 33% plunge in North America?
There is a simple explanation for this apparent contradiction. And the details here may help inform whether Celsius is a stock worth buying following its steep sell-off.
When someone meanders down to a convenience store and picks a can of Celsius over a can of Monster or Red Bull, that’s great for Celsius from a market-share perspective — it got a sale whereas the other two didn’t. But when that consumer walks up to the register and pays, that doesn’t count as revenue for Celsius.
Technically speaking, Celsius doesn’t sell beverages to thirsty consumers. Rather, it sells its beverages to distributors who in turn sell to retailers and consumers. That’s how it works in the consumer-packaged goods space. And normally, revenue tracks pretty closely with end sales to consumers. But sometimes, there can be disruption.
In this case, Celsius’ top distributor ordered too much product last year. Now, the distributor needs to correct its inventory levels. Celsius’ revenue consequently took a hit of over $100 million from this single partner. And yet, end sales to consumers still went up 7% year over year. Considering this 7% sales growth outpaced growth in the industry, its market share increased even though revenue to the company plunged.
Imagine if I pitched Celsius stock like this: “Celsius stock is down more than 70% from its all-time high, and its revenue plunged more than 30% last quarter. Would you like to buy shares?” Many investors would likely decline the offer. After all, who wants to own shares of a business in severe decline?
Jake Paul Vs. Mike Tyson Boxing Match Sets 'Record-Breaking Night' For Netflix: Streaming Giant Says Nearly 60M Households Tuned In
Friday marked a “record-breaking” night for streaming platform Netflix NFLX after 60 million households around the world watched the Jake Paul vs. Mike Tyson boxing event live, the company said on Saturday.
What Happened: Nearly 50 million households also tuned in live to watch the co-main event of Amanda Serrano vs. Katie Taylor, Netflix said. The audience gathered for the event held at the AT&T Stadium in Arlington, Texas, included Evander Holyfield, Shaquille O’Neal, Sugar Ray Leonard, Jerry Jones, Charlize Theron, and Ralph Macchio, among others.
“Paul vs. Tyson gate has surpassed $18 million, double the previous Texas gate record for combat sports in both boxing and MMA, topping Canelo Álvarez’s record of $9 million,” Netflix said while adding that 72.3k attendees gathered to witness the fights.
Paul defeated Tyson and Taylor won over Serrano on Friday.
Why It Matters: Netflix is currently attempting to bolster its live content. While it has previously aired live comedy stand-ups, award shows, roasts, and other special events, Friday was the first time it aired a boxing event live.
Last month, Netflix reported strong third-quarter financial results. The company’s revenue was $9.825 billion, a 15% increase year-over-year, beating the Street consensus estimate of $9.769 billion. The streaming service currently also boasts more than 282 million global paid subscribers.
The successful foray into live sports content could potentially boost Netflix’s subscriber base and revenue in the future.
Price Action: Netflix shares ended Friday’s trading session down 1.57%, closing at $823.96. The stock is up by about 76% year-to-date, according to data from Benzinga Pro.
Read Next:
Image Credit: Netflix
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Legendary Investor Rob Arnott Says Stock Market 'Looks And Feels Like The Year 2000' As Wall Street Rallies After Trump's Win: '…Likely To See A Bear Market'
The current stock market environment is reminiscent of the dot-com bubble peak, according to Rob Arnott, the founder and chairman of Research Affiliates. Arnott predicts a significant pullback in the near future.
What Happened: Arnott, who is known for his early predictions of bull market tops, sees parallels between the current market and the dot-com bubble peak, reported Business Insider. He does not anticipate an immediate significant pullback but foresees a substantial decline in the near future.
Arnott’s observations come as the S&P 500, a large-cap index dominated by mega-cap growth firms, surged 5% within a week following the election of Donald Trump, closing above 6,000 for the first time. This rapid increase is the latest development in a 66% rally that has lasted over two years.
“This looks and feels like the year 2000 to me,” Arnott told the publication.
“Are we likely to see a bear market in the next two years for large-cap growth? Yeah.”
The market’s record highs are driven by a strong economy and optimism about artificial intelligence and business-friendly policies from the future Trump administration. However, Arnott believes that the AI optimism, which has been the primary driver of the rally, is already fully priced in.
Arnott points to the S&P 500’s Shiller cyclically adjusted price-to-earnings ratio, which is at levels comparable to the dot-com bubble peak. At 37 times earnings, just below the late-2021 peak of 38, before the market fell by 25%, and the 2000 peak of 43, right before a 50% loss.
Arnott also highlights the potential threats to the market’s bullish narrative, such as the rise of competition for companies like Nvidia NVDA and a slower-than-expected pace of AI adoption. However, he added that companies like Nvidia are expected to maintain their 90% market share even as competition intensifies and chip prices eventually decrease.
“Well, Intel is teetering perilously close to irrelevance, and Nvidia wasn’t on anyone’s radar screen five years ago. So disruptors get disrupted.”
Why It Matters: Arnott’s warning echoes concerns raised by other market experts. In October, Billionaire Jeremy Grantham warned that the current economy is the most vulnerable market ever. This was after the U.S. stock market’s surge, fueled by the promise of artificial intelligence, drew comparisons to the dot-com bubble of the late 1990s.
These concerns are particularly relevant given the recent performance of MicroStrategy Inc., whose shares hit a 24-year high, marking the highest level since the dot-com bubble in March 2000. This surge was fueled by the rise in Bitcoin (CRYPTO: Bitcoin), a crucial asset held by the company in its portfolio.
Price Action: The S&P 500 Index closed at 5,870.62 points on Friday, it has yielded 23.78% on a year-to-date basis and 30.22% over the last year. The SPDR S&P 500 ETF SPY which tracks the S&P 500 Index has had a similar momentum in 2024.
Image via Unsplash
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Chamath Palihapitiya Regrets This '$3 Or $4 Billion' Crypto Mistake As Bitcoin Rises Above $90,000: 'Would Have Made…A Lot More Money'
In the wake of Bitcoin’s record-breaking surge following President-elect Donald Trump‘s victory, prominent venture capitalist Chamath Palihapitiya has voiced regret over his decision to sell his Bitcoin BTC/USD holdings.
What Happened: Palihapitiya, who once possessed a substantial amount of Bitcoin in his funds, expressed his remorse over the sale on the All In Podcast on Monday. “I actually think about all the Bitcoin I sold…that’s a, I don’t know, a three or four billion dollar mistake in growing now,” he stated.
At the time, Palihapitiya’s partners opted to distribute Bitcoin, a decision that was profitable but, in retrospect, not as profitable as retaining the cryptocurrency. “Obviously I shouldn’t have sold it. Would have made them a lot more money,” Palihapitiya admitted.
Why It Matters: Bitcoin has made history by surpassing the $90,000 mark, propelled by Trump’s pro-cryptocurrency stance and the prospect of a crypto-friendly Congress. The value of Bitcoin has risen by 90% in 2024, spurred by robust demand for dedicated U.S. exchange-traded funds and interest-rate reductions by the Federal Reserve.
Bitcoin’s surge, which reached new heights following the US election, has yielded returns that outstrip those from other investments such as stocks and gold.
In a previous episode of the All-In podcast, Palihapitiya discussed a significant shift in how Gen Z approaches financial independence. He noted that many young individuals no longer rely solely on their primary jobs to achieve financial freedom; instead, they engage in side activities such as trading cryptocurrencies like Bitcoin and options on platforms like Robinhood and Coinbase.
Palihapitiya’s regret over selling his Bitcoin holdings comes at a time when the cryptocurrency market is experiencing significant growth. Anthony Scaramucci, the founder of Skybridge Capital, anticipates a potential shift towards a less politicized regulatory environment for cryptocurrencies under the upcoming U.S. administration, which could further boost Bitcoin’s value.
Photo by TechCrunch on Flickr
Market News and Data brought to you by Benzinga APIs
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.