GameStop shares plummeted despite influencer Keith Gill sharing his large position, and Uber lost a legal challenge over gig worker classification in California. Toyota faced a scandal for falsifying safety data, impacting its stock. All this and more on the June 11 edition of World Street.
GameStop shares extend losses
GameStop shares extended their fall for a second session on Monday, after meme stock influencer Keith Gill, a key figure behind the GameStop rally in 2021, returned to the limelight last week. He held his first livestream in three years on Friday., disclosing his position worth millions in the retailer's shares.
However, this failed to renew investors' interest in GameStop. On Monday, its shares sank 15 percent, extending losses from the 40 percent fall on Friday, after GameStop reported falling revenues.
A sad gig
On Monday, a US appeals court rejected an attempt by Uber and Postmates to revive a challenge against a California law. This law could require some companies to classify gig workers as employees instead of independent contractors.
The classification distinction is significant and controversial. Employees receive benefits like minimum wage, overtime pay, expense reimbursements, and other protections not granted to independent contractors.
Japanese automakers' speedbump
Toyota saw a sharp fall in its share prices after Japan's Transport Ministry exposed that the company falsified and mishandled safety certification test data. Toyota's market cap fell by $15.6 billion as shares declined over 5.4 percent.
An internal investigation, mandated by regulators, found Toyota failed to perform required safety tests. In a tough week for Japanese automakers, Honda, Mazda, and Suzuki also admitted to falsifying safety certification data.
Musk's pay struck down
The chief investment officer of a major California pension fund announced that he will vote against the revised compensation plan for Tesla CEO Elon Musk. Chris Ailman, CIO of the California State Teachers’ Retirement System, stated that the fund opposed the plan before and will continue to do so.
Musk's compensation package includes performance-based stock options valued at approximately $50 billion. This vote seeks to reapprove a 2018 pay plan that was overturned by a judge in January.
Changing the climate at Citi
The New York police arrested nearly two dozen climate activists blocking Citi Headquarters. About 150 protesters gathered outside the financial giant's building during rush hour. The protest kicked off the "Summer of Heat on Wall Street," a campaign aiming to end Wall Street's oil, coal, and gas funding through ongoing disruptive actions.
Citi's latest Climate report revealed $10.4 billion in energy sector funding, with $4 billion for oil and gas production in 2022. “Citi welcomes continued engagement with our stakeholders and we are transparent about our climate-related activities," said the firm.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
