Oil Industry Shake-Up, Investor Moves, and Earnings Surprises: A Week in Business Highlights

In the oil industry, Diamondback Energy and Endeavor Energy Resources have announced a merger, creating a $50 billion oil and gas conglomerate. Diamondback successfully outbid competitors like ConocoPhillips for Endeavor, which has been highly sought after due to its strong presence in the Permian Basin.

The news of the merger caused Diamondback’s shares to soar by 9.4% on Monday, making it one of the top performers in the S&P 500.

In other news, billionaire investor Carl Icahn disclosed a nearly 10% stake in JetBlue Airways on Monday, stating that he believed the shares were undervalued. By Friday, Icahn had reached a deal with JetBlue for two board seats. JetBlue has faced challenges in recent years, with operational issues and financial losses. However, the appointment of Joanna Geraghty as the incoming CEO signals a commitment to turning the company around.

Despite JetBlue’s struggles, its shares surged by 22% on Tuesday following news of Icahn’s investment. However, the stock has still experienced a significant decline in value over the past few years.

Meanwhile, Lyft experienced a boost in its shares after reporting strong earnings and forecasting better-than-expected bookings for the current quarter. A typo in Lyft’s earnings release, which inflated a profitability metric, initially sent the stock up by more than 60% in after-hours trading on Tuesday. Despite the correction, Lyft’s shares jumped by 35% on Wednesday, marking their best day on record.

Robinhood Markets surprised Wall Street with a fourth-quarter profit, driven by increased trading revenue, particularly in crypto trading. The company posted $30 million in net income, its highest earnings since going public in 2021. Robinhood’s shares rose by 13% on Wednesday, their best one-day performance since 2022.

However, DoorDash’s strong quarterly results failed to meet investor expectations, leading to an 8.1% decline in its shares on Friday. The food-delivery company reported better-than-expected revenue in the fourth quarter but faced pressure from investors who were likely expecting even stronger performance given the stock’s recent run-up.

Finally, Nike announced job cuts representing about 2% of its workforce, totaling more than 1,600 employees. The company aims to redirect resources towards key categories like running, women’s apparel, and the Jordan brand. Nike’s decision comes as it predicts slower sales and looks to reduce costs following a lowered revenue outlook in December. As a result, Nike’s shares fell by 2.4% on Friday.