Sundry Photography
Listen below or on the go on Apple Podcasts and Spotify
WW International (WW) sinks on Chapter 11 bankruptcy declaration. (00:21) Stock futures rise on news of U.S.-China trade talks. (01:15) Rivian (RIVN) unlocks an $1B investment from Volkswagen by recording another gross profit quarter. (01:49)
This is an abridged transcript.
WW International (NASDAQ:WW), formerly known as WeightWatchers declared Chapter 11 bankruptcy protection along with its first quarter results.
The company, which has recently been in financial trouble given the rising popularity of weight loss drugs, said that it is implementing a reorganization deal with certain holders to eliminate $1.15B in debt from its balance sheet.
This will not impact members.
The company also reported a 9.7% fall in first quarter revenue of $186.6M, while it recorded an adjusted loss of $0.47 per share.
“The decisive actions we’re taking today, with the overwhelming support of our lenders and noteholders, will give us the flexibility to accelerate innovation, reinvest in our members, and lead with authority in a rapidly evolving weight management landscape,” said CEO Tara Comonte.
Stock futures are in the green early Wednesday after a government spokesperson said U.S. Treasury Secretary Scott Bessent and U.S. Trade Representative Jamieson Greer would meet with their Chinese counterparts this week in Switzerland for preliminary trade negotiations.
Bessent and Greer will reportedly travel together to Geneva on May 8, also meeting with Swiss President Karin Ketter-Sutter to discuss negotiations over reciprocal trade.
Stocks have been volatile since President Trump announced his first round of tariffs on April 2.
Rivian Automotive (NASDAQ:RIVN) traded slightly lower on Tuesday after reporting Q1 results and updating on its 2025 outlook to adjust for the tariff backdrop.
Notably, the company said it achieved gross profit of $206 million during the quarter to mark its second consecutive quarter in the green. By hitting the milestone, Rivian (NASDAQ:RIVN) unlocked an expected $1 billion investment from Volkswagen Group (OTCPK:VLKAF) (OTCPK:VWAGY) as part of their joint venture agreement. The investment is expected to be funded on June 30, 2025.
Rivian (NASDAQ:RIVN) also narrowed its quarterly adjusted EBITDA loss compared to a year ago and showed improvement with free cash flow.
Rivian Automotive (RIVN) is up 0.3% in premarket action.
The EV stock has outperformed Tesla (TSLA) and Lucid Group (LCID) in 2025 so far.
What’s Trending on Seeking Alpha:
Trump teases ‘very, very big’ announcement, says ‘not necessarily’ on trade
Super Micro Computer projects $6B revenue for Q4 FY2025 with focus on AI and DLC solutions
Amazon’s Zoox issues software recall, plans to scale up robotaxi production
Catalyst watch:
-
The NAMA Show in Las Vegas will be the center of attention of the convenience services industry. Attendees will see the latest in vending equipment, robotics, smart kiosks, holographic touchscreens, and AI-powered solutions. Companies showing off products include PepsiCo (PEP), Coca-Cola (KO), Hershey (HSY), and Nayax (NYAX). VenHub plans to show off its fully operational smart store.
-
At 4pm Costco (COST) will release its April sales report. Analysts will be looking to see if the retailer benefited from a stocking-up effect ahead of tariffs.
Now let’s take a look at the markets ahead of the opening bell. Dow, S&P and Nasdaq futures are in the green. Crude oil is up 0.8% at $59/barrel. Bitcoin is up 0.1% at $97,000. Gold is down 0.6% at $3,377.
The FTSE 100 is down 0.3% and the DAX is up 0.1%.
The biggest movers for the day premarket: Super Micro Computer (NASDAQ:SMCI) -5% – Shares fell after the company reported mixed FQ3 results and lowered FY2025 revenue guidance.
On today’s economic calendar:
Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
#Wall #Street #Breakfast #Podcast #International #Bankrupt