Investment U #Trending: RadioShack Tanks While GM Orders Yet Another Recall
The second week of June is officially in the books, featuring big IPOs, exciting acquisitions and, yes, even more recalls. Here are the trending stories you may have missed...
- On Monday, Web hosting giant GoDaddy filed for an initial public offering – the company’s second attempt since it was founded in 1997. GoDaddy was previously valued at $2.25 billion, but its CEO, Blake Irving, said in July that it could increase its annual revenue to $5 billion within the next two to three years. GoDaddy has been mired with scandals recently, from selectively shutting down websites to its founder’s penchant for hunting elephants. However, most people are familiar with the company due to its humorous - some would say gross - Super Bowl ads (the most recent is embedded below).
- Apple’s (Nasdaq: AAPL) 7:1 stock split officially went into effect Monday, with individual shares priced at $94. According to a CNN Money poll, the majority of retail investors are thrilled to finally be able to purchase the stock. Prior to Monday, shares closed at $645.57.
- RadioShack (NYSE: RSH) slipped into a tailspin Tuesday after announcing a quarterly loss of $98.3 million. The company is planning to close 200 stores a year over the next three years, but analysts question whether that will be enough to keep it from becoming the next Circuit City. Since Monday, shares of RadioShack have fallen more than 20%. Our Managing Editor, Rachel Gearhart, recently covered this story - and how it could have larger implications for the electronic retail sector. Click here to read her piece.
- On Wednesday, Toyota (NYSE: TM) re-recalled more than 766,000 cars and trucks in the U.S. The previous recall notice - issued in 2013 - involved an issue with improperly assembled airbag inflators. But according to a new press release, "the involved serial numbers provided by the supplier were incomplete, and did not include all of the potentially involved inflators." As a result, the automaker is notifying all customers who took part in the previous recall, as well as those who bought certain model years of its Corolla, Tundra, Sequoia and Lexus SC 430 lines.
In other recall news...
- General Motors (NYSE: GM) announced that it’s recalling nearly 512,000 Camaros as part of its ongoing ignition switch issue. So far this year, the company has recalled 16.5 million vehicles in North America. And odds are there will be more to come. What does that mean for investors? Click here to read our latest on the subject.
And last but not least...
- On Friday, OpenTable (Nasdaq: OPEN) shares hit a two-year high of $104.32 - up 48% from their previous close - on news that the company will be acquired by Priceline (Nasdaq: PCLN). The deal is valued at $2.6 billion and will add restaurant booking to Priceline’s existing capabilities. In response to the news, other local business Internet stocks rose higher, including Yelp (NYSE: YELP), Groupon (Nasdaq: GRPN) and GrubHub (NYSE: GRUB).
That’s it for this week. As always, I encourage you to follow Investment U on Facebook here, Twitter here, and Google+ here. And feel free to contribute to the conversation in our LinkedIn group here.
Have a great weekend.