Bed Bath & Beyond, Virgin Galactic, and Semiconductor Makers: Weekly Digest (9-13 January)
This week, we focused on companies such as Bed Bath & Beyond, Virgin Galactic, NVIDIA, Advanced Micro Devices, Intel, and Taiwan Semiconductor Manufacturing. See how their stocks reacted to the latest events.
Bed Bath & Beyond meme stock skyrocketed 300%
Since Monday 9 January, the stock price of American retailer of home appliances Bed Bath & Beyond Inc. (NASDAQ: BBBY) skyrocketed 300% to $5.24 per share. This growth is particularly interesting, considering the disaster of a quarterly report and the announcements made by the management about laying off staff, closing down stores, and possible bankruptcy.
On Tuesday 10 January, Bed Bath & Beyond Inc. reported that its revenue in Q3, financial 2022, compared to the statistics of 2021, had dropped by 33% to $1.26 billion, the net loss had increased by 42.1% to $392.9 million, and loss per share rose 55.8% to $4.33.
On Wednesday 11 January, private investors that are active in the Reddit social medium embarked on buying large volumes of BBBY stock. More than 225 million shares were sold over a trading session, which is 12 times more than the monthly average.
Consequently, on the same day, the quotes of the retailer rebounded 68.6% to $3.49, causing a meme stock rally. The shares of Carving Co. (NYSE: CVNA) soared 24.43% to $5.5, AMC Entertainment Holdings Inc. (NYSE: AMC) surged 21.18% to $4.92, and GameStop Corp. (NYSE: GME) gained 7.15% to $19.04.
Stocks of NVIDIA, AMD, and Intel are growing
The quotes of the US semiconductor industry stocks have been growing since the beginning of the week. Since Monday, NVIDIA Corporation (NASDAQ: NVDA) stock grew by 11.1% to $165.11, Advanced Micro Devices Inc. (NASDAQ: AMD) climbed 10.7% to $70.8, and Intel Corporation (NASDAQ: INTC) leaped up 5.4% to $30.29.
Analysts attribute this growth to the news from China: it became known that the government had put aside the plan to provide local manufacturers of semiconductors with over $140 billion in subsidies.
Virgin Galactic is not changing its plans to launch commercial spacecraft
On Thursday 12 January, space company Virgin Galactic Holdings Inc. announced that Swami Iyer, President of aerospace systems, was leaving his post, but would continue to serve as an advisor to the CEO, Michael Colglazier until March to ensure a smooth transition.
The company explained the decision was taken further to its aim for the optimisation of the commercial flights programme that remains scheduled for Q2 2023. The short-term goals of Virgin Galactic Holdings Inc. are to increase the frequency of flights alongside the speed of its fleet development.
Moreover, on the same day, it became known that the carrier spacecraft had finally been modernised and on-the-ground tests would be performed in the week after, followed by trials in the air meant for bringing the booster to perfection.
On the same day, the stocks of Virgin Galactic Holdings Inc. (NYSE: SPCE) closed the trading session with a 7.69% growth to $4.62. After trades were over, the securities jumped 19.7% more to $5.53.
TSMC report: profit increased by 60% in 2022
On Thursday, the Taiwan Semiconductor Manufacturing Company presented its report for Q4 and the whole of last year. Revenue from October to December 2022, compared to the statistics of 2021, increased by 26.7% to $19.9 billion. Net profit rose by 57.8% to $9.4 billion, and EPS by 58.3% to $1.82.
Over the whole year, revenue increased by 33.5% to $75.9 billion, net profit by 59.5% to $34.1 billion, and EPS by 59.5% to $6 57. TSMC expects this year's Q1 revenue to reach $16.7-17.5 billion.
On 12 January, with such quarterly and annual statistics, the quotes of Taiwan Semiconductor Manufacturing Company (NYSE: TSM) closed the trading session with a 6.38% gain to $87.
This week, a large number of retail investors drove up shares of meme stocks, led by a surge in Bed Bath & Beyond stock, which skyrocketed 300% as a result.
The shares of the American manufacturer of semiconductors, NVIDIA Corporation, Advanced Micro Devices Inc., and Intel Corporation recorded growth this week following the news from China.
Virgin Galactic Holdings Inc. reshuffled key leadership posts, and confirmed its readiness to launch commercial flights in Q2 this year – this announcement sent its quotes up, gaining 8%.
Taiwan Semiconductor Manufacturing Company reported its performance in Q4 and 2022 on the whole – the quotes reacted with 6% growth.