Apple, Exxon Mobil, Rivian: Stocks That Defined the Week
Apple Inc.
Major Western companies are retreating from Russia. Apple said Tuesday it stopped selling iPhones and other products in Russia, saying it was “deeply concerned about the Russian invasion of Ukraine.” Ukraine’s vice prime minister on Feb. 25 asked Chief Executive
Tim Cook
to stop supplying products and services—including access to the App Store—to Russia. Other companies that made similar moves include
Ford Motor Co.
and
Dell Technologies Inc.
Apple shares gained 2.1% Wednesday.
Zoom Video Communications Inc.
The return of the office may be slowing Zoom’s connection. The company’s sales growth faltered in the fourth quarter, signaling that demand for its videoconferencing application is no longer as entrenched in daily life as it was earlier in the pandemic. Zoom’s performance soared when Covid-19 treatments were largely unavailable and much of the world operated on virtual platforms as people stayed indoors. As Covid-19 conditions improve and competitors such as
Microsoft Corp.
and
Meta Platforms Inc.
fight for market share, Zoom has looked for ways to augment its growth. Its nearly $15 billion attempted acquisition of contact-center company
Five9 Inc.
in September was blocked by the selling shareholders. Zoom shares lost 7.4% Tuesday.
Exxon Mobil Corp.
Russia’s attack on Ukraine fueled a surge in oil over the past week. U.S. crude prices on Wednesday rose to over $110 a barrel for the first time since 2014 as refiners refused to buy Russian oil, taking a bite out of global energy supplies. Rising oil costs could further boost inflation across the U.S. economy. U.S. oil giants such as Exxon Mobil and
Chevron Corp.
stand to benefit from higher energy prices, even as they work to disentangle themselves from Russia. Exxon said Tuesday it was halting operations at a multibillion-dollar oil-and-gas project in Russia and would make no further investments in the country, following similar moves by European peers
PLC and
PLC. Exxon shares rose 1.7% Wednesday.
Kroger Co.
Shoppers are hungry for more-affordable meals. Kroger said Thursday that its streak of strong sales and profits continued in the latest quarter, thanks to U.S. consumers who ate more at home. Executives said shoppers are cooking more meals at home because it is cheaper to do so than to dine out and that they are shifting to low-cost store brands. Food costs have been rising for months as manufacturers raise prices to offset growing costs and sellers like Kroger pass on these increases to consumers. Price increases in meat and grocery products have been highest, and Kroger executives expect inflation to moderate in the second half of the year. Kroger shares added 12% Thursday.
Best Buy Co.
Best Buy is trying to recover from a holiday hangover. The electronics retailer posted lower sales for the holiday quarter compared with the same period a year ago, when homebound consumers splurged on televisions and other electronics. The company expected inventory constraints but shortages were worse than anticipated, particularly in areas that include popular holiday gifts such as mobile phones and computing. While Best Buy expects revenue to fall in its current fiscal year, the company expects sales to rebound to as much as $56.5 billion by 2024, above Wall Street expectations. Best Buy shares increased 9.2% Thursday.
Automotive Inc.
Rivian shifted a hefty price increase into reverse. The electric-vehicle startup’s Chief Executive
RJ Scaringe
apologized in a letter Thursday for applying higher prices to existing orders for its electric trucks and SUVs. The increase was put into effect earlier in the week as the company tried to cope with rising costs of parts and materials, but Mr. Scaringe said Rivian erred by applying them to existing orders. The company will now honor the original prices for customers who ordered a vehicle before the Tuesday increase, which added around 20% to the price of some model configurations. For some customers, the rise translated into a premium of $10,000 to $20,000. Rivian shares slid more than 13% Wednesday and fell 5% further Thursday.
Sweetgreen Inc.
Workers are returning to offices, and so are their desk salads. Sweetgreen reported results and an outlook that were better than expected, boosted by higher prices and workers returning to their physical workplaces. The company, which went public in November, said sales are improving in Sweetgreen’s urban stores, particularly in Midtown Manhattan. Sweetgreen also raised prices by 6% earlier this year as it seeks to pay for rising wages and other costs and food, including avocados. The company said it hopes to open at least 35 new restaurants this year, while construction delays and supply-chain problems weighed on the chain’s new openings. Sweetgreen shares surged 25% Friday.
Write to Francesca Fontana at francesca.fontana@wsj.com
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