Uber CEO Travis Kalanick has kept his job, so far. An investigation by the ride-sharing company’s board has led to the ouster of senior executive Emil Michael. The board asked an outside law firm to look into the mishandling of a rape case in India and ignored employee complaints.
Investors continued to sell down megatech stocks Apple Inc. (NASDAQ: AAPL), Alphabet Inc. (NASDAQ: GOOGL), Amazon.com Inc. (NASDAQ: AMZN) and Facebook Inc. (NASDAQ: FB). Shareholders are worried that the stocks, the prices of which have risen in high double-digits in the past year, have become overvalued as they have grown de facto dominance in their fields. Robert Bouroujerdi, chief investment officer at Goldman Sachs, wrote in a note to investors:
Five companies poised to dominate disruption – Facebook, Amazon, Apple, Microsoft and Alphabet – have added a total of $600m (£474m) of market cap this year, or the equivalent gross domestic product of Hong Kong and South Africa combined. Parallels to the ‘nifty-fifty’ and 1999 to 2000 are growing as their performance is even more pronounced on a risk-adjusted basis.
According to CNBC, U.K. regulators may block the Heineken buyout of 2,000 pubs owned by Punch Taverns.
A new rating report from Fitch said that several retailers are in significant financial trouble and may be unable to survive. According to a note from the firm:
Fitch has 10 retailers on its Loans of Concern or Bonds of Concern lists including Sears, Claire’s Stores Inc., Nine West Holdings, Inc., 99 Cent Stores, LLC, J. Crew Group Inc., True Religion Apparel, Inc., Charlotte Russe Inc., Charming Charlie LLC, NYDJ Apparels LLC and Vince LLC. Fitch publishes these lists to identify issuers that are considered to have a significant risk of default within the next 12 months.
McDonald’s (NYSE: MCD) will hire about 250,000 summers workers using Snap Inc.’s (NYSE: SNAP) Snapchat. The 24/7 Wall St. story on the announcement was posted yesterday.
Jaguar Land Rover invested $25 million into Uber rival Lyft.