Benzinga Video Scripts - Tuesday, 01.10.23

Tuesday’s Premarket Moves: Oak Street Health, CureVac, Boeing, Frontline - CNBC

Oak Street Health rose 36 percent after Bloomberg reported that CVS is looking at options to purchase the healthcare company for $10 billion. CureVac shares rose 19 percent after the company said it plans further patient trials of its mRNA vaccines for Covid-19 and the flu. Boeing dropped 2 percent in premarket trading after Morgan Stanley downgraded it to equal weight. Frontline’s stock rose 24 percent premarket after the oil tanker shipping company announced that it was terminating its combination with Euronav.

Microsoft Plans to Invest in Open AI - CNBC
Microsoft plans to invest $10 billion in OpenAI, the startup known for ChatGPT, as part of a funding round with other investors. Microsoft will reportedly get a 75 percent share of OpenAI’s profits until it makes a return on its investment, at which point the company would have a 49 percent stake in the tech startup. Open AI has garnered a lot of attention in the tech world recently with its ChatGPT, an artificial intelligence tool that is a natural language processing tool. ChatGPT’s capabilities could make Microsoft’s web search tools more competitive with Google.

Coinbase Cutting 20% of Workforce - CNBC

Coinbase plans to cut 950 jobs, or a fifth of its workforce, in response to the downturn in the cryptocurrency market. Coinbase had 4,700 employees at the end of September after the crypto exchange cut 18 percent of its workforce in June. The company is undergoing restructuring measures as well as shutting down projects that have a lower probability of success. The cost-cutting measures will reduce Coinbase’s operating expenses by 25 percent in the quarter ending in March. CEO Brian Armstrong said that the FTX collapse created a “black eye” for the digital crypto industry.

CVS Seeks $10B Acquisition of Oak Street - CNBC

CVS Health Corp is looking into an acquisition of Oak Street Health Inc, valued at $10 billion. Talks between the two companies are still ongoing. The drugstore operator has been expanding in the healthcare industry through its acquisitions. Its most recent deal was with Signify Health Inc., which runs a healthcare platform, is expected to close early in 2023. Oak Street Health Inc. operates primary care centers for Medicare recipients.

Former Trump Org CFO Sentenced for Tax Crimes - WSJ

Former Trump Organization CFO Allen Weisselberg is set to be sentenced on Tuesday for tax crimes he committed at the company. Weisselberg pled guilty in August to 15 felonies for his role in compensating Trump Organization employees, including himself, with off-the-books benefits to evade taxes. From 2005 to 2021, Weisselberg failed to report $1.76 million in benefits, which included a rent-free Manhattan apartment, Mercedes-Benz cars, and private-school tuition for his grandchildren. Weisselberg is expected to receive a sentence of five months at New York City’s Rikers Island jail complex, followed by five years probation, in exchange for testifying at the Trump Organization’s trial.

Bed Bath & Beyond Reports Deeper Losses - Bloomberg

Bed Bath and Beyond reported larger-than-expected third-quarter losses. The beleaguered home retailer reported a net loss of $393 million, compared to the $386 million expected. It has cash, equivalents, and investments of $200 million and a total liquidity of $500 million as of its fiscal third quarter. Its cash flow is at a deficit of $307.6 million. Bed Bath and Beyond has struggled to keep its shelves stocked, and CEO Sue Gove commented that moving forward, it would “actively pursue higher in-stock levels to meet proven demand.”

Software Developer Among the Top Jobs for 2023 - Bloomberg

Software Developer took the number one spot of U.S. News & World Report’s list of Best Jobs of 2023 despite the wave of layoffs in the tech industry. Nurse practitioner came in second, Medical and Health Services Manager was third, followed by Physician Assistant and Information Security Analyst. According to a survey, over a quarter of laid-off tech workers are moving into a different industry as competition for roles in the tech industry increases. As opportunities in Silicon Valley shrink, they remain plentiful outside the Bay Area in industries such as finance and retail, which have struggled to match tech industry salaries and benefits.