Air Canada (DOG)
Between long lineups at airports, lost luggage and delayed or cancelled flights, airline passengers have plenty to complain about these days. So do airline investors. The already beaten-down shares of Air Canada sank after the company said it will eliminate 154 North American flights a day, on average, during July and August, to cope with what chief executive Michael Rousseau called “unprecedented and unforeseen strains on all aspects of the global aviation system.” With Air Canada’s stock trading at less than a third of its prepandemic high, investors can’t afford to travel this summer, anyway.
The five stages of crypto grief: 1) Denial: Bitcoin isn’t collapsing; it’s having a “healthy correction” that will “take some froth out of the market”; 2) Bargaining: If I borrow money to buy more crypto, I’ll “average down” my cost base and make more money when it rebounds; 3) Confusion: Why does bitcoin keep falling? Pierre PoiIievre said it was a great idea; 4) Anger: Damn it, I’m losing my shirt here! I should have trusted my instincts and bought a GIC; 5) Acceptance: The money is gone, my spouse is going to divorce me and I will never be able to retire.
Fancy a pair of Prada sneakers for $1,440? How about a $3,215 Dolce & Gabbana denim tote bag, or a $34,388 Brunello Cucinelli high-neck zipped jacket? You’ll find these must-have items and more at Farfetch, an online retailer that specializes in snooty fashion brands favoured by people with too much money. That would not include Farfetch investors, who have watched the stock tumble more than 80 per cent in the past year as inflation, recession fears and a return to in-person shopping have hurt the business. At this point, a recovery in the stock price seems far-fetched, indeed.
Carvana may sell some perfectly good used cars, but the stock has turned out to be a lemon. Already down 90 per cent from its 2021 high amid a broad sell-off in growth companies, the stock lost more ground this week after an article in Forbes said the company has burned through billions of dollars of cash and is vastly overvalued based on projected industry growth rates. Adding to investors’ anxiety, a report in Barron’s said Carvana had delivered some cars it sold before registering them in the customers’ names, and brokerage Stifel Nicolaus cut its price target on the stock, citing the impact of rising interest rates on the business. Too bad the shares didn’t come with a warranty.
Etsy has been giving investors an ouchy. Shares of the e-commerce company – which focuses on handmade crafts and vintage items – have lost about three-quarters of their value over the past seven months as surging inflation, rising interest rates and a slowdown in online shopping have hurt sales. With Needham analyst Anna Andreeva downgrading the shares to “hold” from a “buy,” citing a weakening economy, Etsy investors could be in pain for a while.
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