December 2024 stock markets opened with a pair of firms announcing executive leadership changes.
Stellantis (STLA) CEO Carlos Tavares resigned abruptly after shares lost 47.68% of its value in 20. The firm, which owns Dodge, Chrysler, Fiat, and Jeep, struggled to adjust its automotive prices after the pandemic ended. When inflation rates accelerated and the Fed hiked interest rates, the firm continued to sell vehicles at an over $100,000 price tag.
Stellantis pivoted its focus back to the European markets, leaving its U.S. divisions in limbo. Watch out for the company to sell or wind down its U.S. business, hurting shareholders. STLA stock fell by 6.29 percent to close at $12.37 on Dec. 2.
Intel (INTC) CEO Pat Gelsinger announced that he would retire. David Zisner and Michelle Johnson Holthaus will replace him as co-CEOs. Intel failed too many times in the last two years. It overspent on building chip manufacturing plants in the U.S. In addition, its previous two generations of premium CPUs suffered catastrophic crashes. The firm needed to extend the warranty and issue exchanges or returns to customers whose chips became unstable.
In the aerospace sector, Archer Aviation (ACHR) lost 23.7% on no news. Short sellers hold a commanding 20% short interest against the stock. Similarly, they are betting against Joby Aviation (JOBY). Beware of both stocks.
Related Stories
