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Amazon announces 2022 Prime Day dates, Chipotle pilots cauliflower rice, Tesla raises prices

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Yahoo Finance Live anchors discuss three stocks they are watching today: Amazon, Chipotle, and Tesla.

Video Transcript

RACHELLE AKUFFO: Well, we'll see how that market downturn affected some of our picks today on triple play. My pick is Amazon. If you love shopping, it's all about Prime Day. Now the world's largest retailer announced its two-day blowout sale will happen on July 12th and 13th. The stock is down today, though. It's down-- it's off about 4% there. And they did say that investors are hoping that Prime Day might be the bump that the stock needs.

Now the stock has fallen about 40% over the past year. And the company saw its first ever quarterly loss in seven years in the first quarter. Now, like other retailers, they're also facing record low consumer sentiment at 50.2% due to inflation. You have supply chain issues, concerns now that the Fed raising interest rates could slow the economy, and of course, changing consumer tastes in light of the post-pandemic world we're now trying to get into.

Now the digital retailer is also hoping for a sales boost with its brick and mortar Amazon-style stores. Now they had-- they're adding a second location in Columbus, Ohio at the Eastern Town Center. And that was after launching their first one in May. So digital going physical. They seem to be gathering some ground there.

SEANA SMITH: Well, they do it all. It's hard to bet against Amazon these days when you look at their track record and see how successful they have been in various businesses. But Rachelle, you bring up a good point, Prime Day. We know that there's so much hype, so much excitement around it. Obviously, it's a big boost to Amazon's business. They're able to attract users to their site, Prime users that maybe don't necessarily use Amazon all the time. New Prime users also, they normally attract every single year because of Prime.

But it's also a big shopping day for other retailers, and especially at a time like this, when consumers may be pulling back, this will be a very, very welcome event here for some of their big competitors. There was data out from last year from Adobe Analytics saying that total e-commerce sales over those two days totaled just about $11 billion. So that really puts into perspective how big those 48 hours are for the entire retail sector.

All right, moving on here and looking at the restaurant industry, Chipotle is my play today. Now the restaurant giant giving cauliflower rice another try. This time, the chain is adding Mexican cauliflower rice to its menu at 60 locations, giving customers the option to add it to any menu item that they would please for an additional cost. Now Chipotle gave cauliflower rice a go last year. It turned out to be a huge hit, bringing in new customers. Now the chain initially offered cilantro lime cauliflower rice and said that one in five rice orders were from people trying Chipotle for the first time.

The most recent quarter, Chipotle actually did pretty well. They posted a 9% jump in same store sales, Dave. But we know, along with the broader markets, Chipotle has been under pressure. Shares off just about 30% since the start of the year. Cauliflower rice-- I don't know. Maybe it'll help things turn things around there.

DAVE BRIGGS: I would think the-- certainly, the economy would help turn things around. I think people tend to go towards foods like Chipotle that do fill you up for not a lot of money. But cauliflower rice, it depends on the extra charge. They didn't say what that was. And I read several articles. If it's $1, probably not. If it's $0.20 or $0.30, yeah, why not go for something healthy?

SEANA SMITH: And it was interesting how they made the estimate that I think it was in January of 2021 when they initially added cauliflower rice. One in five of the customers that ordered it were new people going to Chipotle. So you think about, it'd be interesting to know--

DAVE BRIGGS: Wow.

SEANA SMITH: --whether or not they were repeat customers after they removed it from their menu. But I don't know. Maybe it'd be something that will be sticking around.

DAVE BRIGGS: Definitely game to try it. Just need to know the price. All right, my play is Tesla. Inflation has come for them. The EV maker again raising prices for all models in the United States in response to the global supply chain issues, as well as soaring raw material costs. The Model Y price increasing about $3,000 to just shy of $66,000, while the cost of the more expensive Model X is going up around $6,000.

Now, earlier this month, Elon Musk spooked the markets and employees, saying he had a super bad feeling about the economy and wanted to cut 10% of salaried workers. Now shares already having a very rough go of it this year, fell dramatically today. And here's the numbers on your screen. It has been a very brutal day for Tesla, down nearly 50% year to date, as they just continue to get hammered. At some point, Rachelle, this looks like an awfully good buy, but there was some bad data that came out today, a report citing more than 400 crashes of driverless cars. So clearly a long way to go in the autonomous category.

RACHELLE AKUFFO: Indeed, and then when you think of, you already have inflation, and people who maybe might have thought about switching to EVs, now you have this higher price tag. I mean, it's a deterrent. You're looking for a reason to buy an EV. And you're just not getting one when you see the prices jumping, and then, obviously, with this crash data that we're seeing as well. So that's a tough one to swallow there.