Revlon, Kellogg’s, Tesla, ASOS: Why Are These 4 Stocks Trending?

Revlon, Kellogg’s, Tesla, ASOS: Why Are These 4 Stocks Trending?

The stock market has been on a rollercoaster ride, with several companies facing unique challenges and turning heads with major shifts or concerns. Here’s a breakdown of why these four stocks are trending:

1. Revlon Files for Bankruptcy

Iconic beauty brand Revlon (NYSE:REV) made headlines when it filed for bankruptcy protection, citing significant debt, supply chain issues, and the impact of rising inflation. The 90-year-old company, once a staple in the beauty industry, has struggled to compete with newer, celebrity-backed brands like those of Rihanna and Kylie Jenner. Despite strong consumer demand, Revlon’s challenges in attracting younger buyers have hurt its position. After its bankruptcy announcement, the stock plummeted to a historic low of $1.17, but due to growing short interest, it has seen a sharp rebound and now trades above $5.50, attracting attention as a potential meme stock.

2. Kellogg’s Splits into Three

Kellogg Co. (NYSE:K) announced a major restructuring, splitting into three separate publicly traded companies. The spin-off includes separating its snack business (Pringles, Pop-Tarts, etc.) from its cereal and plant-based businesses. With the cereal segment accounting for only about 20% of Kellogg’s net sales, the company aims to focus on higher-growth areas. This move follows stagnant cereal sales in the US and reflects the changing preferences of consumers. The announcement led to a surge in Kellogg’s stock, hitting a one-month high as investors responded positively to the restructuring plan.

3. Tesla Faces Supply Chain Woes

Tesla (NASDAQ:TSLA), a company often regarded as more of a tech giant than an automaker, has been dealing with significant supply chain disruptions. CEO Elon Musk revealed that Tesla is losing billions due to a global battery shortage and supply chain issues, particularly in China. The Shanghai gigafactory was temporarily shut down due to COVID-19 restrictions, and rising raw material costs have forced the company to increase prices for its Model Y. Despite these challenges, Tesla’s stock remains resilient, hovering around $700 per share, with investors seemingly undeterred by the short-term hurdles.

4. ASOS Cuts Outlook Amid Inflationary Pressures

British online fashion retailer ASOS (LON:ASC) lowered its full-year revenue forecast, citing market volatility and higher return rates. The company now expects sales growth between 4% and 7%, a sharp decrease from its previous estimate of 10% to 15%. ASOS also acknowledged that inflation is influencing consumer behavior, leading to reduced spending. As a result, ASOS shares fell to their lowest level in over a decade. The company is taking measures to mitigate the impact, but the outlook remains uncertain as inflation continues to weigh on its performance.

Conclusion

These four stocks—Revlon, Kellogg’s, Tesla, and ASOS—are all facing unique challenges, from bankruptcies to supply chain issues and changing consumer preferences. While some are struggling to adapt, others are attempting to restructure or pivot to new strategies. Investors are watching closely to see how these companies navigate through these turbulent times and whether they can recover or thrive in the face of adversity.