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Good Morning! 👋
Happy Wednesday! Let’s see what is moving markets:
👉 Apple cancels Project Titan
👉 Beyond Meat stock soars
👉 DOJ launches investigation
APPLE: Cancels Project Titan
Apple has stopped its decade-long project to create an electric car, surprising nearly 2,000 employees. The company announced internally that it would shift employees from the car project to work on generative artificial intelligence. Some employees may find other roles within Apple, but there will be multiple layoffs.
Source: Inside EVs
Investors reacted positively to the news, causing Apple's stock to rise. The project, known as Project Titan, aimed to produce a self-driving electric car with advanced features. They faced numerous challenges, including changes in leadership and difficulties with autonomous driving technology. Apple had been working on the car since 2014, but it was still far from production.
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BEYOND: Stock Soars After Earnings
Beyond Meat exceeded fourth-quarter revenue expectations due to strong international sales despite weak demand in the U.S. The company plans to adjust its prices in 2024. After a significant drop in its share value in 2023, its stock surged 84% in after-hours trading on Tuesday. Nearly 40% of its shares were short by the end of January.
Source: CNN
To tackle low U.S. sales, Beyond Meat has cut prices and increased discounts, as its plant-based meat is more expensive than regular meat. Nonetheless, demand in international markets, especially Europe, remains strong. The company's efforts to reduce costs have helped manage the impact of slow U.S. sales. The company saw an 8% increase in volume sales in the last quarter. Despite a 7.8% drop in fourth-quarter revenue to $73.7 million, it beat analysts' expectations. However, its full-year revenue forecast falls short of market predictions, and it reported a larger-than-expected quarterly loss of 92 cents per share.
DOJ: Launches Investigation
The U.S. Justice Department is investigating UnitedHealth Group for possible antitrust violations. They're talking to people in the healthcare industry about UnitedHealth's business practices, especially how its insurance and health services branches work together. UnitedHealth offers a wide range of healthcare services, including mental health and pharmacy benefits.
Source: Reuters
The government and lawmakers are looking into how middlemen in healthcare might be making costs go up. The investigation also includes examining how UnitedHealth bills Medicare, to check if they're claiming more money than they should. This isn't the first time UnitedHealth has faced legal scrutiny; the Justice Department tried to stop its merger with Change Healthcare in 2022, but the deal went through later that year.
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