STOCK MARKET NEWS: Dow soars, Salesforce activist target, Microsoft layoffs

Leafly plans to eliminate 56 positions, or 21% of its workforce, through a combination of layoffs and attrition — to ensure its long-term health. The company expects a one-time cash restructuring charge for the layoffs of approximately $500,000 in the fourth quarter of 2022.

The company also announced that Chief Operating Officer Sam martin is leaving effective December 31, 2022,

The company expects third quarter revenue of $11.8 million, representing 8% year over year growth.

The adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) loss is expected to be in the range of approximately $(6.0) million to $(5.0) million.

UBER EATS TO OFFER CANNABIS DELIVERIES

Adobe logos in this illustration taken in Vienna July 9, 2013. (Reuters/Leonhard Foeger)

Adobe is higher in after-hours trading. The computer software company reaffirmed its fiscal fourth quarter financial targets and provided preliminary financial targets for fiscal year 2023.

The targets do not reflect the planned acquisition of Figma that is expected to close during 2023.

The company is aiming for fiscal 2023 total revenue of $19.1 to $19.3 billion and earnings per share of $10.75 to $11.05 per share.

Digital media net new annual recurring revenue is pegged at $1.65 billion.

Intuitive Surgical is higher in extended trading. The maker of robotic surgery products topped Wall Street profit estimates but missed on revenue.

Third quarter revenue rose 11% to $1.56 billion, driven by growth in da Vinci procedure volume, partially offset by a decline in system placements. Worldwide da Vinci procedures grew approximately 20% year over year. The estimate was $1.52 billion.

Net income was $324 million compared to $381 million last year.

Diluted earnings per share was $1.19. Wall Street expected $1.12.

United Airlines jet takes off at Newark Liberty International Airport, N.J., U.S. Dec. 6, 2019. (Reuters/Chris Helgren)

United Airlines Holdings on Tuesday reported higher-than-expected third-quarter earnings and forecast a stronger profit in the current quarter due to a robust rebound in travel demand.

Its shares jumped nearly 8% to $40.14 in extended trading.

The Chicago-based carrier reported an adjusted profit of $2.81 per share for the third quarter, topping analysts' expectations by 53 cents, according to Refinitiv data. That marked the company's best performance since the third quarter of 2019, just before the COVID-19 pandemic hit.

United said it expects an adjusted profit of $2.00 to $2.25 per share in the fourth quarter through December on a 24% to 25% jump in total revenue per available seat mile compared with the same quarter in 2019.That would be more than double Wall Street estimates of 98 cents a share for the fourth quarter.

Carriers are using 2019, before the pandemic, as the benchmark for their performance.

The company said it remains confident of hitting adjusted pre-tax margin target of 9% in 2023.

Netflix booth at Comic-Con International in San Diego, Calif., July 21, 2022. (Reuters/Bing Guan)

Netflix Inc reversed customer losses and provided a slightly more bullish outlook than Wall Street expected, projecting a new ad-supported streaming option would help attract 4.5 million subscribers by year's end.

Shares of Netflix jumped nearly 14% in after-hours trading. The company's stock, an investor favorite during its years of rapid growth, had fallen nearly 60% this year before the earnings report.

From July through September, Netflix attracted 2.4 million new subscribers worldwide, more than double the 1.07 million consensus forecast of analysts polled by Refinitiv.

During the quarter, Netflix released the final episodes of sci-fi hit "Stranger Things" plus serial-killer series "Dahmer - Monster: The Jeffrey Dahmer Story," which became one of Netflix's most-watched series of all time.

For the third quarter, Netflix topped Wall Street projections with revenue of $7.9 billion, up 6% from a year earlier. Earnings were $3.10 per share.

The company's forecast of 4.5 million customer pickups by the end of 2022 came in slightly ahead of Wall Street estimates, which had averaged 4.2 million. For the fourth quarter, Netflix is projecting revenue of $7.8 billion -- a sequential decline it blamed on the strong value of the U.S. dollar.

Small figurines are seen in front of displayed Microsoft logo in this illustration created Feb. 11, 2022. (Reuters/Dado Ruvic/Illustration))

ECONOMY

Microsoft lays off more employees amid weakness in PC market demand

As of June 30, Microsoft reported a total global workforce of 221,000 employees, including 122,000 workers in the United States and 99,000 internationally.

Microsoft Corp laid off under 1,000 employees across several divisions this week, Axios reported on Tuesday, citing a source, making it the latest U.S. technology company to cut jobs or slow hiring amid a global economic slowdown.

The layoffs affected less than 1% of Microsoft's total workforce of around 221,000 as of June 30.The company had said in July that a small number of roles had been eliminated and that it would increase its headcount down the line.

Microsoft did not immediately respond to a Reuters' request for comment on the Axios report.

Several technology companies, including Meta Platforms Inc, Twitter Inc and Snap Inc have cut jobs and scaled back hiring in recent months as global economic growth slows due to higher interest rates, rising inflation and an energy crisis in Europe.

Salesforce Tower in New York City, N.Y., Mar. 7, 2019. (Reuters/Brendan McDermid)

MARKETS

Activist investor Starboard takes Salesforce stake

A Salesforce spokesperson told FOX Business that the company is "committed to acting in the best interests of our shareholders" but did not comment on the report of a stake.

Starboard Value LP has taken a stake in Salesforce Inc, CNBC reported, citing the activist investment firm's founder Jeff Smith.

The hedge fund did not disclose the size of the stake in the report.

Starboard did not immediately respond to Reuters request for comment. Salesforce said it is committed to acting in the best interests of shareholders, but declined to comment on the stake.

Meta Platforms logo at its booth, at the Viva Technology conference, Porte de Versailles exhibition center in Paris, France, June 17, 2022. (Reuters/Benoit Tessier)

MARKETS

Facebook parent Meta to sell Giphy, giving up battle with UK regulators

Facebook owner Meta is throwing in the towel after a lengthy battle with a U.K. watchdog, agreeing to sell Giphy at the behest of the foreign regulator.

Britain's competition regulator has ordered Facebook-owner Meta to sell animated-images platform Giphy on Tuesday after a tribunal upheld its view that the acquisition could damage its rivals and remove a potential competitor in advertising.

Meta said it would accept the Competition and Markets Authority's (CMA) order to unwind the 2020 deal.

The ruling was the first time a regulator had forced a U.S. tech giant to sell an already acquired company, and signalled a new determination to scrutinise digital deals.

The British regulator had blocked the Giphy deal, valued at a reported $400 million, in November 2021 on concerns that Meta could deny or limit competitors such as Snapchat and Twitter access to Giphy's GIFs.

Nordstrom Local store, Upper East Side, New York, N.Y. (Photo: Nordstrom)

Nordstrom reaffirmed its fiscal 2022 financial outlook while announcing a new chief financial officer, the company said.

The luxury department store chain is promoting chief accounting officer Michael Maher to CFO. Current CFO Anne Bramman plans to step down on December 2.

Maher joined Nordstrom in 2009 as controller and has more than 25 years of finance and accounting experience.

The operator of more than 350 Nordstrom, Nordstrom Local and Nordstrom Rack locations reaffirmed its guidance. The company expects 5% to 7% revenue growth and adjusted earnings per share of $2.30 to $2.60.

Lockheed Martin’s extended-range guided multiple launch rocket system (Photo: Lockheed Martin)

Lockheed Martin Corp. on Tuesday reported third-quarter earnings of $1.78 billion.

The Bethesda, Maryland-based company said it had net income of $6.71 per share. Earnings, adjusted for non-recurring costs, were $6.87 per share.

The results topped Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $6.58 per share.

The aerospace and defense company posted revenue of $16.58 billion in the period, missing Street forecasts. Five analysts surveyed by Zacks expected $16.82 billion.

Lockheed expects full-year earnings to be $21.55 per share, with revenue expected to be $65.25 billion.

Costa Fortuna (Photo: Carnival Corporation)

Carnival Corporation is up more than 10%. The cruise line operator said a subsidiary has commenced a $1.25 billion private bond offering, using 12 vessels as collateral.

The owner of Princess and Costa Cruises, Holland America and other brands will use proceeds to pay down debt and for general corporate purposes.

Standard & Poor’s said the issuance does not change the ratings agency’s credit rating or outlook because it is largely a debt for debt transaction.

“We continue to expect the company's S&P Global Ratings-adjusted credit measures will remain very weak in fiscal year 2022 (ending Nov. 30, 2022) because of its coronavirus pandemic-related incremental debt and the gradual recovery in its operations,” S&P said.

Lafarge plant in Paris, France, Sept. 3, 2020. (Reuters/Charles Platiau)

French cement maker Lafarge pleaded guilty on Tuesday to a U.S. charge that it made payments to groups designated as terrorists by the United States, including Islamic State, according to a court hearing.

The admission in Brooklyn federal court marked the first time a company has pleaded guilty in the United States to charges of providing material support to a terrorist organization.

Lafarge, which became part of Swiss-listed Holcim in 2015, is also facing charges of complicity in crimes against humanity in Paris for keeping a factory running in Syria after a conflict broke out in 2011.

Under the terms of the resolution, Lafarge and its long-defunct subsidiary Lafarge Cement Syria will pay a financial penalty of $777.78 million and agreed to plead guilty to one count of conspiring to provide material support to designated foreign terrorist organizations in Syria from August 2013 to October 2014, by which time LCS had ceased operations in the country.

The cement maker previously admitted after an internal investigation that its Syrian subsidiary paid armed groups to help protect staff at the plant. But it had denied charges that it was complicit in crimes against humanity.

Holcim said that former Lafarge executives involved in the conduct concealed it from Holcim, as well as from external auditors.

“We deeply regret that this conduct occurred and have worked with the U.S. Department of Justice to resolve this matter,” Lafarge said.

Reuters contributed to this report.

Conn’s fell more than 20% in Tuesday trading. The specialty retailer of home goods, including furniture, appliances and consumer electronics, said CEO Chandra Holt has stepped down with immediate effect.

Norman Miller will serve as interim president and chief executive officer. Miller served as president and CEO from September 2015 to August 2021 and executive chair from August 2021 until April 2022, and has been a member of the Board of Directors since September 2015.

The company withdrew its previous financial guidance. Conn’s said macroeconomic headwinds are disproportionately affecting year-over-year sales of discretionary products and to the financial access segment.

As a result, the company currently expects total revenue for the fiscal year 2023 third quarter to be down 21% to 23%. In addition, Conn’s expects operating margin for the fiscal year 2023 third quarter to be negative mid-single digits.

Worker operates one of the metal cutting machines at Gent Machine's factory in Cleveland, Ohio, May 26, 2021. (Reuters/Timothy Aeppel)

Production at U.S. factories rose in September led by output gains in both durable and nondurable goods, indicating the manufacturing sector remains on reasonable footing despite the Federal Reserve's efforts to hamper demand through higher interest rates.

Manufacturing output rose 0.4% last month, keeping pace with an upwardly revised 0.4% gain in August, the Federal Reserve said on Tuesday. Economists polled by Reuters had forecast factory production would rise 0.2%. Output increased 4.7% from a year earlier.

Overall industrial production rose 0.4%, after slipping 0.1% the prior month. Economists polled by Reuters had estimated a 0.1% increase.

Capacity utilization, a measure of how fully producers are using their resources, rose to 80.3% last month from an upwardly revised 80.1% in August.

Eli Lilly and Company pharmaceutical manufacturing plant, Branchburg, N.J., Mar. 5, 2021. (Reuters/Mike Segar)

Eli Lilly and Co will acquire genetic medicine developer Akouos Inc for about $487 million in cash as the drugmaker aims to bolster its arsenal of gene therapies that target a range of disabilities.

The deal also includes a payment of $3 per share contingent on certain events related to drug trials and has the potential to increase the transaction size to $610 million, the companies said on Tuesday.

Eli Lilly has been striving to build its pipeline of gene therapies, following the acquisition of Prevail Therapeutics Inc for $1 billion last year.

It announced a $700 million investment in a new research hub in Boston, Massachusetts earlier this year that focuses on developing gene therapies.

TECHNOLOGY

Elon Musk tells Dave Portnoy he has plan to address number of Twitter bots

Elon Musk told Dave Portnoy on Monday he has a plan to address the high number of bots on Twitter. Musk intends to purchase the social media platform.

Tesla and SpaceX founder Elon Musk said he has a plan to tackle the high number of spam robots or "bots" on Twitter, as he intends to purchase the social media company.

POLITICS

Government data proves ‘corporate greed’ isn’t causing inflation, contrary to Dem claims: economists

Data from the Biden administrations shows "corporate greed" is not the main cause of inflation and that companies are sparing customers from some price hikes.

The inflation blame game is raging but a deep dive into the data tells us that U.S. corporations are trying to ease the burden of high costs.