Business and Finance News - 6.19.24

Chipotle Announces 50-for-1 Stock Split to Boost Affordability

• Chipotle (CMG) announced a 50-for-1 stock split for shareholders of record on June 18.

• The stock split aims to make Chipotle shares more affordable for investors.

• Investors holding Chipotle stock by end of June 18 trading will receive split shares.

• Shareholders will get 49 additional shares for each share held after June 25.

• Trading on the post-split basis will start on June 26.

• The stock closed at $3,365.46 on Monday, up 2.87% that day.

• Hypothetical post-split value at Monday's closing price would be about $67 per share.

*Chipotle Mexican Grill, Inc. is an American chain of fast-casual restaurants known for its focus on Mexican-inspired cuisine.

Embraer Eyes Competition with Boeing and Airbus, Promises Quick Deliveries Amid Industry Delays

• Embraer is considering competing with Boeing and Airbus in the commercial airline market.

• Embraer's (ERJ) CEO believes their planes can be a "great solution" for airlines needing quick deliveries.

• Airlines are frustrated with Boeing's delays, worsened by the 737 Max 9 door plug issue.

• Airbus is also behind schedule due to engine problems from a supplier, affecting deliveries.

• Spirit Airlines expects up to $200 million compensation due to Airbus-related issues.

• Embraer's planes are currently smaller than Boeing's 737 Max and Airbus A320neo models.

• CEO Gomes Neto downplayed immediate plans for larger aircraft, citing ongoing studies.

*Embraer is a Brazilian aerospace company that designs, manufactures, and sells aircraft and related aerospace products and services.

Fisker Files for Bankruptcy After Halting Faulty Ocean SUV Production

• Fisker Inc. (FSRN) filed for bankruptcy after halting production of its malfunctioning Ocean SUV.

• Fisker listed $500 million to $1 billion in assets and $100 million to $500 million in liabilities.

• This is the second bankruptcy for a company started by Henrik Fisker.

• The Ocean SUV lacked basic features, and software bugs slowed production.

• Influential YouTuber Marques Brownlee's negative review garnered over 5.7 million views.

• Fisker produced 10,193 Oceans last year but delivered only 4,929 vehicles to customers.

• Magna's outlook assumed no further production of Ocean SUVs, leading to layoffs in Austria.

*Fisker Inc. is an American automotive company that designs and manufactures electric vehicles (EVs).

FDA Approves Merck's Capvaxive Vaccine for Pneumococcal Protection

• FDA approved Merck’s (MRK) Capvaxive vaccine to protect adults from pneumococcal bacteria.

• Capvaxive protects against 21 strains, preventing severe pneumococcal disease and pneumonia.

• An advisory panel will meet on June 27 to discuss eligibility for Capvaxive.

• Capvaxive aims to provide broader protection than currently available pneumococcal vaccines.

• Around 150,000 U.S. adults are hospitalized with pneumococcal pneumonia annually.

• Merck expects Capvaxive to offset future losses from its cancer drug Keytruda.

• Capvaxive targets strains causing 85% of invasive pneumococcal disease cases in adults 65+.

*Merck & Co., Inc. (known as MSD outside the United States and Canada) is a global healthcare company that focuses on various aspects of medical research, development, and manufacturing.

Warren Buffett's Berkshire Hathaway Increases Occidental Stake to 28.8% with Nine Days of Buys

• Warren Buffett's Berkshire Hathaway (BRK.A) bought Occidental (OXY) shares for nine consecutive trading sessions.

• The purchases increased Berkshire's stake in Occidental to 28.8%, over 255 million shares.

• Berkshire's acquisitions totaled an additional 7.3 million shares, around $60 per share.

• Berkshire owns $10 billion in Occidental preferred stock and warrants for 83.9 million common shares.

• Buffett said he started buying after reading Occidental's earnings call transcript.

• Berkshire has regulatory approval to purchase up to a 50% stake in Occidental.

• Occidental's stock closed at $60.2 on Monday, with a 1.5% dividend yield.

*Berkshire Hathaway Inc. is a multinational conglomerate holding company headquartered in Omaha, Nebraska, United States. The company is known for its control and leadership by Warren Buffett, one of the most famous investors in the world.

*Occidental Petroleum Corporation, often referred to as Oxy, is an American multinational energy company involved in the exploration, production, and marketing of various energy resources.

Here’s how the markets closed yesterday (the markets are closed today):

• Dow Jones: 38,834.86 +56.76 (+0.15%)

• S&P 500: 5,487.03 +13.80 (+0.25%)

• Nasdaq: 17,862.23 +5.21 (+0.03%)

• Bitcoin (BTC): $65,225.42 (4:00PM PST on 6/18/24)

• Ethereum (ETH): $3,478.40 (4:00PM PST on 6/18/24)

Here’s how the THE SUPER SIX STOCKS did yesterday (the markets are closed today):

• Nvidia (3.341T): 135.58 +4.60 (+3.51%)

• Microsoft (3.317T): 446.34 -2.03 (-0.45%)

• Apple (3.286T): 214.29 -2.38 (-1.10%)

• Alphabet (2.181T): 176.45 -2.33 (-1.30%)

• Amazon (1.902T): 182.81 -1.25 (-0.68%)

• Meta Platforms (1.267T): 499.49 -7.14 (-1.41%)

*Nvidia overtook Microsoft as the most valuable company in the world