ViacomCBS, GameStop, AMC: Stocks That Defined the Week
13 March 2021 - 2:05PM
Dow Jones News
By Francesca Fontana
ViacomCBS Inc.
A new British invasion is generating a princely sum for some
American entertainment companies. About 17.1 million people tuned
in on March 7 to watch Oprah Winfrey's interview with Prince Harry
and Duchess of Sussex Meghan Markle on the ViacomCBS-owned CBS
network, which paid a licensing fee between $7 million and $9
million. Ms. Winfrey is also working with Prince Harry on a special
about mental health for Apple TV+. ViacomCBS shares rose 13%
Monday.
Dick's Sporting Goods Inc.
The late stages of the pandemic will test the stamina of Dick's
Sporting Goods. The retailer said on Tuesday that it expects sales
to ease this year after last year's growth, fueled by strong demand
for at-home fitness equipment during lockdown. Like other
retailers, Dick's strengthened its e-commerce operation last year
to continue to reach shoppers adjusting to new work and lifestyle
patterns. Now, the company faces the challenge of maintaining
momentum and building on last year's gains. Other retail chains
like Walmart Inc. have also said they believe growth will slow.
Dick's shares lost 6.3% Tuesday.
GameStop Corp.
Online trading mobs drove up GameStop's value. Now, the retailer
faces pressure to turn itself around. GameStop said Monday that its
board formed a committee dedicated to transforming the videogame
company that will be led by Chewy Inc. co-founder Ryan Cohen. Last
year, Mr. Cohen bought a large stake in GameStop and started
pushing the company to revamp its business model. The company has
struggled in recent years, facing competition from Amazon.com Inc.
and other large online retailers. Consumer and developer habits
changed as well, as many favor downloading or streaming games from
home rather than buying physical games at stores. GameStop shares
soared 41% Monday.
General Electric Co.
The lights are going out at GE Capital. General Electric on
Wednesday agreed to combine GE Capital Aviation Services, the
jet-leasing unit of the once-sprawling lender, with rival AerCap
Holdings NV in a deal worth more than $30 billion. Chief Executive
Larry Culp said the deal will simplify the industrial giant, which
will essentially return to being a manufacturer of power turbines,
jet engines, wind turbines and hospital equipment. Mr. Culp will
use the proceeds to shed debts that have hung over GE since the
2008 financial crisis. The remainder of GE Capital, a legacy
insurance business and a small equipment-leasing operation, will be
folded into the company's corporate operations. GE shares fell 5.4%
Wednesday.
Stitch Fix Inc.
Stitch Fix is all tangled up because of problems at the post
office. The online fashion retailer on Monday reported
underwhelming results for the holiday quarter that the company
largely attributed to shipping delays. Stitch Fix ships boxes of
clothes to customers who can keep what they want and return the
rest, and the U.S. Postal Service is its main carrier. The USPS has
struggled to manage surging package volumes during the pandemic as
consumers became more reliant on online shopping. During the
holidays, FedEx Corp. and United Parcel Service Inc. also limited
the number of packages they accepted, compounding ongoing staffing
shortages and putting additional strain on USPS. Stitch Fix shares
fell 28% Tuesday.
AMC Entertainment Holdings Inc.
The curtain is opening again at movie theaters across the U.S.
AMC, the world's largest movie theater chain, has reopened many of
its cinemas in recent weeks after a winter surge of coronavirus
cases prompted closures at the end of 2020. The company said
roughly 527 out of its 589 domestic theaters were open as of March
5, and it expects new films and vaccine distribution to bring
better results this year. AMC on Wednesday reported an annual loss
of $4.59 billion for 2020, but the company has been able to avoid
bankruptcy thanks to new money from investors. AMC shares added
4.4% Thursday.
Amazon.com Inc.
Amazon.com won't sell books framing LGBTQ+ identities as mental
illnesses. The company stated its policy on Thursday in a letter to
several Republican senators explaining its decision to remove a
book from its platforms. Last month, Sens. Marco Rubio of Florida,
Mike Lee of Utah, Mike Braun of Indiana and Josh Hawley of Missouri
wrote to Amazon asking why a three-year-old book about transgender
issues by a conservative scholar was no longer available for
purchase. In the letter--which was signed by Brian Huseman,
Amazon's vice president of public policy--Amazon also said it
provides customers "with access to a variety of viewpoints,
including books that some customers may find objectionable" but
reserves the right not to sell certain content. Amazon.com shares
fell 0.8% Friday.
Write to Francesca Fontana at francesca.fontana@wsj.com
(END) Dow Jones Newswires
March 12, 2021 21:50 ET (02:50 GMT)
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