Good Evening! Monday’s gains contributed to Wall Street’s recovery from its worst week of the year.
The S&P 500 increased by 0.31%, while the Dow Jones gained by 0.22%. The Nasdaq Composite rose by 0.63%.
CEO PAY REDUCTION
Zoom Video Communications Inc. (ZM) shares surged in extended trading on Monday after the videoconferencing business surpassed forecasts for its top line & bottom line and outlook for the next year, soothing anxieties about a company that recently laid off 15% of its workforce as a pandemic-era boom subsided.
- Revenue: $1.12 Billion vs. $1.1 Billion Expected
- Earnings Per Share: $1.22 vs. $0.81 Expected
Going forward, the CEO is making some changes… Since its previous earnings report, Zoom has said it would lay off 1,300 employees, or 15% of its total staff. Zoom Chief Executive Eric Yuan said in a blog post that he “made mistakes” when he tripled Zoom’s employees during the pandemic.
Because of this… Yuan said that he would reduce his personal compensation by 98% and skip any business incentives during the fiscal year of 2023. On top of that, other senior leaders would similarly suffer 20% pay cuts and no bonuses.
EV SURGE
The electric car startup Fisker Inc. (FSR) reported higher orders for its sport utility vehicle Ocean and maintained its production target for the year, causing its shares to surge by as much as 36%.
Why is it important? EV manufacturers, like the car industry as a whole, have struggled with manufacturing delays caused by the pandemic, and many now face dwindling demand with increasing interest rates and recessionary worries.
Why is Fisker special? Fisker confirmed its 2023 production goal of 42,400 cars with the Austrian unit of its manufacturing partner Magna International, despite the fact that some suppliers continue to face obstacles. During a conference call with investors, Magna CEO Henrik Fisker said that the company was prepared to make 20 vehicles per day, with a “substantial” ramp-up in the second quarter.