Bed Bath & Beyond surges 54% after it introduces 3 new private label brands in continued turnaround strategy

bed bath & beyond
  • Shares of Bed Bath & Beyond surged as much as 54% on Wednesday after the retailer announced the launch of its own private label brands.
  • The retailer will soon launch three new owned brands targeting the kitchen, home, and storage space.
  • As part of its turn around, Bed Bath & Beyond has launched a number of private label brands in a bid to boost both profits and sales.
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Bed Bath & Beyond spiked as much as 54% in Wednesday’s trading session following the retailer’s “ahead of schedule” launch of three new private label brands targeting the kitchen, home, and storage space.

The private label launch by the retailer is part of its continued turnaround strategy since CEO Mark Tritton took over in late 2019. The brands Our Table, Wild Sage, and Squared Away will launch in the coming weeks and round out Bed Bath & Beyond’s private label offering to six total.

The retailer said it plans to have launched a total of eight private brands by February of next year, and at least ten new brands total. The move into private label brands is following the playbook of Tritton’s former employer, Target, which has seen great success with its Threshold, Hearth & Hand, and Room Essentials brands.

Bed Bath & Beyond launched Simply Essential, Haven, and Nestwell brands last quarter, offering products in the kitchen, bathroom, and bedroom space. Bed Bath & Beyond’s three new brands will offer more than 2,000 individual products for sale.

The move is a bid to continue Tritton’s turnaround strategy of the struggling retailer, with private label brands often seen as boosting profits for retailers, as well as sales if the brands take off with consumers. The retailer expects its private label brands to triple its sales penetration to 30% from 10% over the next three years.

Bed Bath & Beyond’s surge on Wednesday could have also been supercharged by an overall frenzy in so-called “meme” stocks, with AMC Entertainment leading the charge, up more than 100% on Wednesday. Bed Bath & Beyond is a heavily shorted stock that nearly tripled amid the GameStop frenzy that occurred in late January.

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These 4 stocks related to the lumber industry are soaring as prices for the commodity doubled in 2021

  • A double in lumber prices so far in 2021 has helped push up the stock prices of companies involved in the production of wood.
  • The commodity has seen a surging price as demand for homes continues to increase, and as supply constraints continue.
  • These 4 stocks have seen strong rallies so far in 2021 as prices for lumber soar.
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Lumber prices have doubled so far in 2021 and are up 250% since last spring as the commodity gets squeezed on both the demand side and the supply side.

A consistent rise in demand for homes, combined with tightening supply of the commodity due to timber constraints in Canadian forests has led to the commodity surging to a record $1,500 per thousand board feet this week.

The surge in prices has added on average $36,000 to the costs of building an average single family home, according to the National Association of Homebuilders. But that’s not denting demand for new homes, with median housing sale prices hitting records throughout the pandemic and into 2021.

And an aging millennial population that is transitioning to mortgage debt from student loan debt will likely help sustain demand for new homes in the years ahead.

This all sets up a favorable backdrop for companies that manage forests for timber, operate sawmills, and produce home building products out of wood.

These are the 4 lumber-related stocks that have seen strong rallies so far in 2021 as prices for lumber soar.

4. Weyerhauser

Ticker: WY
Market Cap: $30 billion
YTD Performance: 17%

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3. West Fraser Timber Co.

Ticker: WFG
Market Cap: $9.4 billion
YTD Performance: 23%

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2. Boise Cascade

Ticker: BCC
Market Cap: $2.8 billion
YTD Performance: 44%

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1. UFP Industries

Ticker: UFPI
Market Cap: $5.4 billion
YTD Performance: 56%

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Nio reverses losses, jumps 6% after record 1st-quarter deliveries outweigh chip-supply shortages

NIO EP9 electric car is displayed at its store in Beijing
NIO EP9 electric car is displayed at its store in Beijing

  • Nio reversed its early-morning losses and jumped as much as 6% on Friday after its record first-quarter earnings was overwhelmed by chip supply shortages.
  • Nio saw its first-quarter revenue grow 481% to $1.2 billion, handily beating analyst estimates.
  • “The supply chain is still facing significant challenges due to the semiconductor shortage,” Nio’s CEO said.
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The ongoing global computer chip shortage that has impacted automakers across the globe is also hurting Nio, according to the company’s first-quarter earnings report.

Nio initially fell as much as 4% in Friday trades after its first-quarter earnings beat was overshadowed by the potential slowdown in car production due to a lack of semiconductor supply. But those losses were ultimately reversed, with investors brushing aside chip supply concerns and bidding shares of Nio higher by as much as 6%.

“The overall demand for our products continues to be quite strong, but the supply chain is still facing significant challenges due to the semiconductor shortage,” Nio CEO William Li said.

Nio was already forced to lower its delivery guidance and temporarily halt production last month due to the lack of supply of semiconductors.

The supply shortage has been top of mind for investors this past week, with Apple CEO Tim Cook telling investors it was forced to delay iMac and iPad production and Tesla CEO Elon Musk telling investors the electric vehicle maker has had “insane difficulties” with its supply chain over the last quarter. Ford also said it expects a significant hit to production due to the supply shortage.

First-quarter revenue for Nio hit a record $1.2 billion, handily beating analyst estimates by $160 million and representing year-over-year growth of 481% as demand for electric vehicles in China soars. The company delivered 20,060 vehicles in the quarter, representing a 423% increase year-over-year and a sequential increase of 16%.

The China-based EV manufacturer expects to deliver 21,000-22,000 vehicles in the second quarter, representing year-over-year growth of more than 100%.

Nio isn’t the only car company experiencing a surge in demand from Chinese consumers. Tesla CEO Elon Musk believes China will represent the company’s biggest market in the future, as it continues to scale production in the country.

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UFC parent Endeavor pops 19% in IPO debut, adds Elon Musk to board

UFC Fight Night Frankie Edgar

Endeavor Group surged as much as 19% on Thursday in its IPO debut, hitting an intra-day high of $28.47.

The parent company of UFC and the William Morris talent agency raised $511 million in the IPO, selling 21.3 million shares at a valuation of about $10 billion. Endeavor Group priced its IPO at $24 per share.

The holding company saw a slow down in business amid the pandemic, as it heavily depends on live entertainment. Revenue declined 24% to $3.5 billion in 2020, according to Endeavor’s S-1 filed with the SEC last month.

In anticipation of going public, Endeavor Group added Tesla CEO Elon Musk to its board of directors.

But David Trainer, CEO of New Constructs is cautioning investors about Endeavor Groups “nosebleed” valuation in an investment note on Wednesday.

“No matter how many Elon Musks it adds to its board, Endeavor’s expected valuation of $10 billion is in nosebleed territory,” Trainer said, adding that the company’s lack of profits doesn’t justify such a high valuation. Endeavor posted net losses of more than half a billion dollars in both 2019 and 2020.

Endeavor trades under the ticker symbol “EDR” on the New York Stock Exchange.

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QuantumScape drops 15% after short-seller report calls it a ‘pump-and-dump SPAC scam by Silicon Valley celebrities’ and compares it to disgraced startup Theranos

NYSE trader
  • QuantumScape fell as much as 15% on Thursday after short-seller Scorpion Capital compared the company to Theranos and called it a “pump and dump SPAC scam by silicon valley celebrities.”
  • The report is based on interviews with former QuantumScape employees and alleges that many of the battery startups claims are false.
  • “Our research indicates that QuantumScape can’t even reliably make test cells that work,” the short report said.
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QuantumScape fell as much as 15% on Thursday after the battery startup was the subject of a scathing short-report from Scorpion Capital.

The report, titled “A pump and dump SPAC scam by silicon valley celebrities, that makes Theranos look like amateurs,” say that QuantumScape’s technical claims on its highly guarded battery technology are misleading, exaggerated, or fraudulent.

The report is based off of interviews with former QuantumScape employees, as well as battery experts and current Volkswagen employees that are focused on the auto company’s electric vehicle battery efforts.

QuantumScape is working to make a scalable solid-state battery that would promise quicker charging times, longer range, and lower costs for electric vehicles, relative to today’s lithium-ion batteries.

The company has partnered with Volkswagen, which has invested $300 million in QuantumScape over the past few years, but Scorpion Capital is skeptical that the battery startup can deliver on its promises.

“Our research indicates that QuantumScape can’t even reliably make test cells that work,” the report said, adding that “red flags around scaling and manufacturability render QuantumScape’s cells a pipe dream.”

Volkswagen and QuantumScape are targeting a production start of 2025 for the solid-state batteries. But Scorpion Capital doesn’t think that goal will be met. The short-seller believes Volkswagen is an unwitting partner that lends credibility to QuantumScape, similar to how General Motors partnered with Nikola, or Walgreens and Safeway partnered with Theranos.

“A key feature of the largest frauds is often the backing of a famous investor or corporate partner, in this case VW – ‘the smart money’ – that lends credibility to the scam,” Scorpion Capital said.

Scorpion Capital is short shares of QuantumScape, meaning it stands to profit if the stock moves lower.

Read more: BTIG identifies 14 beaten-down stocks poised to dominate the market this earnings season and extend their track record of crushing expectations

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Virgin Galactic falls 9% after founder Richard Branson unloads $150 million stake in the company

Virgin Galactic debut NYSE
  • Virgin Galactic fell as much as 9% on Thursday after its founder Richard Branson sold about $150 million worth of the company.
  • The share sales took place between April 12 and April 14 at prices ranging from $26.82 to $28.73.
  • Despite the share sale, Branson remains the largest shareholder of Virgin Galactic with a 24% stake.
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Shares of Virgin Galactic dropped by as much as 9% on Thursday after founder Richard Branson sold a $150 million stake in the company, according to an SEC filing.

Branson’s 5.5 million share sale occurred in multiple lots between April 12 and April 14, at prices ranging from $26.82 to $28.73. Virgin Galactic currently trades at $25.35, representing a 60% decline from its all-time high of $62.80 reached in mid-February.

The proceeds from the share sale will be used to fund Branson’s travel and leisure businesses, and to develop new and existing ventures, a Virgin Group representative said. Despite the $150 million share sale, Branson still remains the largest shareholder of the spaceflight company, owning a 24% stake worth about $1.6 billion.

Branson isn’t the only insider who has reduced his exposure to Virgin Galactic. In early March, Virgin Galactic’s chairman Chamath Palihapitiya sold his entire remaining stake in the company for more than $200 million.

Shares of Virgin Galactic were already under pressure this week, with the stock down 13% as its competitor Blue Origin launched a successful test flight of its New Shepard rocket.

Read more: Coinbase’s IPO is driving cryptos to record highs. A former Morgan Stanley trader who now runs a crypto finance firm breaks down why a near-term correction in Bitcoin might actually be a good thing for the industry.

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Dogecoin extends two-day gain to 94%, bringing market cap to $18 billion

The #98 Dogecoin / Ford, driven by Josh Wise, is seen in the garage during practice for the NASCAR Sprint Cup Series Aaron’s 499 at Talladega Superspeedway on May 2, 2014 in Talladega, Alabama.

A broad rally in cryptocurrencies on Wednesday helped extend Dogecoin’s two-day gains to as much as 94%, according to pricing data from Coinbase.

The surge higher helped push the dog-meme-cryptocurrency’s total market value to as much as $18 billion, based on its current outstanding circulating supply of 129.2 billion dogecoin.

Besides being created as a joke, Dogecoin is unique from other cryptocurrencies in that an unlimited amount of the coin can be mined, meaning the is limitless supply of dogecoin. Alternatively, bitcoin has a fixed supply of 21 million coins, of which nearly 19 million bitcoin have already been mined.

But some are buying into the dog-meme joke, including celebrities like Tesla CEO Elon Musk and Guy Fieri of Diners, Drive-Ins, and Dives, who have both tweeted support for the Shiba-Inu inspired cryptocurrency.

“Rollin’ out to the MOON [rocket emoji] #Dogecoin,” Fieri tweeted on Tuesday, accompanied with a picture of Fieri in an astronaut suit holding a space-suited up Dogecoin mascot.

Dogecoin isn’t the only cryptocurrency that has surged to record highs this week. Amid growing anticipation of Coinbase’s direct listing later today, bitcoin surged to record highs above the $64,000 level. Ethereum also touched record highs on Wednesday, while litecoin, and XRP touched multi-year highs.

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Intel and AMD drop after Nvidia unveils plans to sell new CPU processors

Nvidia CEO Jensen Huang
  • Nvidia on Monday unveiled plans to create and sell its own CPU processors, making it a direct competitor with Intel and AMD.
  • Nvidia has historically focused on manufacturing GPU processors, also known as video cards.
  • Shares of Nvidia jumped as much as 4% after the news, while Intel and AMD both fell about 4%.
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Nvidia announced plans to manufacture its own CPU processor, transforming the company into a direct competitor of both Intel and AMD.

The news sent shares of Nvidia surging by as much as 4% on Tuesday, while both Intel and AMD fell by about 4%. Nvidia has historically manufactured premium GPU processors, also known as video cards, with its target customer being PC gamers.

But now, Nvidia is expanding its reach with an Arm-based data center CPU named Grace that delivers a big performance leap for systems that are training AI models, according to the announcement. Nvidia acquired Arm Holdings last year for $40 billion, though the deal has not yet closed.

“The result of more than 10,000 engineering years of work, the NVIDIA Grace CPU is designed to address the computing requirements for the world’s most advanced applications, including natural language processing, recommender systems and AI supercomputing,” Nvidia said.

Intel is the world’s largest maker of data center CPUs, but increased competition has spurred the company to make big multi-billion dollar investments into its manufacturing capabilities.

Grace is expected to be launched in 2023 and will be used in the build of new supercomputers from Swiss Supercomputing Center and the US Department of Energy’s Las Alamos National Laboratory.

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Cruise-ship stocks gain as CDC guidance suggests industry is closer to setting sail

The Crystal Serenity cruise ship.
The Crystal Serenity cruise ship.

  • Cruise-ship stocks soared on Monday after the CDC released a technical guidance update that suggests the industry is closer to setting sail again.
  • The guidance includes additional safety standards cruise-ships must adopt to help combat COVID-19.
  • Norwegian Cruise Lines submitted to the CDC its plans to set sail for the first time since the pandemic began on July 4.
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Cruise-ship stocks soared on Monday after the CDC released a technical guidance update that suggests the industry may be allowed to set sail with paying passengers later this year.

Cruise ships in the US have been unable to set sail for more than a year since the COVID-19 pandemic began.

Shares of Norwegian Cruise Lines, Carnival Corp., and Royal Caribbean Group soared as much as 8%, 7% and 5% in Monday trades, respectively.

The CDC guidance sets up additional COVID-19 protocols for cruise-ships to follow, including running trial voyages with volunteers to test out the new measures before sailing with paying customers.

Requirements also include cruise ships following a color-coded guidance system used to classify ships related to COVID-19, and testing requirements for crew members on a routine basis depending on the ship’s color code.

Norwegian Cruise Lines outlined its plan to resume sailing later this year in a letter submitted to the CDC. The company will require its guests and crew members to be fully vaccinated during the initial relaunch of its cruise-ships.

Norwegian said it plans to restart cruising from US ports starting on July 4, pending approval from the CDC. That could be good timing for the company, as US consumers begin to shift their spending towards services, which bodes well for the travel sector, according to a recent note from Jefferies.

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Electric-vehicle stocks jump after Biden infrastructure plan includes $174 billion investment in sector

EVgo charging
Levy, of EVgo, said there is a such thing as moving too quickly.

  • Electric-vehicle stocks moved higher on Wednesday following the release of Biden’s $2 trillion infrastructure plan.
  • The plan would invest $174 billion in the electric-vehicle market to better compete with China.
  • Shares of Tesla, Fisker, and Lordstown Motors were higher by as much as 4% in Wednesday trades.
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The electric-vehicle sector got a boost on Wednesday with the release of President Joe Biden’s $2 trillion infrastructure proposal.

The bill would carve out $174 billion for the EV sector, as Biden aims to better equip US companies to compete with China, which has a bigger market share of plug-in electric vehicle sales.

Biden’s plan would help automakers retool their factories, invigorate domestic supply chains for raw materials and parts, and “support American workers to make batteries and EVs,” according to a White House fact sheet on the proposal distributed today.

The infrastructure plan would also give rebates and tax incentives to US consumers that buy American-made EVs, and establish grant-and-incentive programs for local governments and the private sector to build a network of half-a-million EV chargers by 2030.

Electrifying the federal fleet of vehicles, US Postal Service vehicles, and at least 20% of school buses are also priorities of the infrastructure plan.

Investors cheered the news, with EV stocks halting their recent multi-month decline and moving higher. EV stocks have been under pressure in recent weeks as a rise in interest rates made these high-growth stocks less appealing relative to more value-oriented cyclical stocks.

Shares of Tesla, Fisker, and Lordstown Motors each traded up as much as 4% in Wednesday trades. Shares of Chinese EV companies also moved higher, with shares of Nio, XPeng, and Li Auto up 1%, 5%, and 7%, respectively.

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