Why did the stock of Bed, Bath & Beyond jump on the news about the onboarding of a new shareholder? What announcement did Amazon make, and how did its shares react following this news? Why did JD.com shares fall so fast? All the answers are in the Weekly News Digest.

Bed, Bath & Beyond shares skyrocketed 34%

The shares of Bed, Bath & Beyond grew after the news about a new shareholder

On Monday 7 March 2022, it was heard that Ryan Cohen had taken a stake at Bed, Bath & Beyond as a new shareholder. Cohen is the chairman of the board of directors of GameStop Corporation and co-founder of Chewy Inc. online pet supply retailer.

Cohen purchased 9.8% of the shares of Bed, Bath & Beyond – the American chain of stores selling household goods. On 7 March, following this news, the shares of Bed, Bath & Beyond (NASDAQ: BBBY) surged 34.18% to $21.71. However, they started correcting on Wednesday, and by Thursday 10 March, the stock price had already lost 6.97%, reaching $20.96.

Cohen is pushing for change at Bed, Bath & Beyond in his letter to the management

The new shareholder of Bed, Bath & Beyond addressed the board of directors, calling for changes in the development strategy of the corporation, and proposing to study the option of partially or fully selling the business. Among other things, Cohen proposed singling out Buybuy Baby – a chain of stores selling goods for kids – as a separate company.

In his letter, Cohen outlined the main issues the company was facing: the shrinking of its part of the market and sales volumes, supply issues, increase in the cost of payroll due to excessive bonuses paid out to top management, doubtful plans for business development, and the decline of the stock prices. It is worth noting that over the last 12 months, the stock quotes had lost 47.8%.

Amazon to carry out a stock split

Amazon shares grew after the news about stock split

On Wednesday 9 March 2022, Amazon announced a stock split, which would be the company's first in more than 20 years. Amazon disclosed its plan to increase its outstanding shares by a 20-to-1 ratio. The board of directors has already approved the 20-for-1 stock split, with the final decision to be made by the shareholders at the meeting on 25 May 2022.

The split means that after the closing of the trading session on 3 June 2022, investors who will have registered by 27 May will receive 19 new shares for every existing one they are holding. Trades including the newly split shares would start on 18 July 2022.

The sum of Amazon shares buyback grows to $10 billion

On the same day, Amazon reported that it had increased the budget intended for the buyback of the shares by 100% to $10 billion. Shares for $2.12 have already been purchased through this campaign.

On 10 March 2022, the announcement regarding the split and the buyback amount sent the shares of Amazon Inc. (NASDAQ: AMZN) up 5.41% to $2936.35.

JD.com report: growth of revenue slows down

JD.com shares reacted by falling to the quarterly and yearly reports

On 9 March 2022, the Chinese corporation JD.com – the leader of electronic trade in China – presented its report for Q4 and the whole of 2021. In the period October-December 2021, the company demonstrated the weakest growth of revenue of the last six quarters.

JD.com reported that in 2021, general and administrative spending rose 80.4% (against 2020) to $1.8 billion. The company attributes this increase to business development as well as the rise in employee salaries.

On Thursday 10 March, the shares of JD.com Inc. (NASDAQ: JD) declined 15.83% to $52.52. Over the session, the stock quotes dropped to $55.36.

Important report details

Revenue$43.3 billion (+23%)$149.3 billion (+27.6%)
ADS loss$0.52 (+121.2%)$0.36% (+107%)
Net loss$0.83 billion (+121.8%)$0.7 billion (+109.1%)

Summing up

The chairman of the board of directors of GameStop and founder of Chewy, Ryan Cohen, became a shareholder of Bed, Bath & Beyond – the stock shot up 34%.

Amazon reported a planned stock split and a 100% increase in the budget meant for stock buyback – the shares climbed more than 5%.

JD.com presented its report for Q4 2021 and the whole year, which demonstrated a significant increase in the net loss and spending – the shares lost almost 16%.

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Server is the guru of searching for market insights. Since 2019 he writes about everything that might be useful to the investor, focusing on the stock market and its assets.