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Amazon rolls out Rivian delivery EVs, Altice USA up on SuddenLink sale, Carnival sells $1B in stock

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Yahoo Finance Live's Rachelle Akuffo, Seana Smith, and Dave Briggs look at several of today's trending stocks.

Video Transcript

[MUSIC PLAYING]

RACHELLE AKUFFO: All right, we're kicking off our triple play with my pick. We're starting first with Altice USA. Now, shares in the cable and internet company popping 43% in intraday trading before paring back some of those gains. As you can see there, still, though, up about 20%. Now, the move came after Bloomberg reported that the company is selling SuddenLink, which services the Southern Central US region.

Now, Goldman Sachs is helping the company explore its $20 billion sale, which would help with Altice's more than $25 billion worth of debt. Now, the stock was actually halted twice in afternoon trading for volatility. It's one of the largest broadband and video service providers in the US.

But of course, over the past year, the stock has dropped almost 70%. The company continues to struggle with ongoing subscriber losses in its broadband business. So an ongoing struggle there for the company, and we'll have to see how it's making out. Not doing great so far this year.

SEANA SMITH: Yeah, certainly, it is. Altice has been struggling. You mentioned those subscriber losses. MoffettNathanson was out with a recent note, saying that they expect Altice to lose about 9,000 subscribers in the second quarter, lost a total of 13,000 in 2021. They do see the prospects looking a little bit better as you look out to 2023 and 2024.

But it all brings it back to the importance of subscribers. So people are losing or deciding to drop their broadband subscriptions, but they're also dropping their streaming subscriptions. So it's hard to try to figure out what exactly the consumer is willing to pay for in this environment.

All right, well, my play today is Amazon and Rivian. It's a twofer here. It's a big day for both companies. Amazon is starting to deliver packages with Rivian's electric vans, vehicles that it developed in partnership with the electric car maker. Now, the vans will be first used in select cities, including Chicago, Dallas, Nashville, Seattle, Baltimore.

They have plans to deploy thousands of Rivian vans in more than 100 cities before the end of the year. Now this is part of Amazon's ambitious push, Dave, to achieve net zero carbon emissions across its operations by 2040. So they're starting small. They're saying it's going to be in about 100 cities by the end of the year. Certainly, a step in the right direction, but they've got a ways to go.

DAVE BRIGGS: Yeah, they want to roll out 100,000 of these things by 2030. The question is, with Rivian, production has been a nightmare, in particular with their pickup truck that was supposed to be a game changer in the industry, and it certainly has not. Can Rivian have the production equal what Amazon wants? That remains a big question. These things are really cool, though. 360 degree visibility for the drivers with cameras at every angle and a screen, which they can see everything. So not just carbon neutral, but very, very safe as well. But Rivian down, what, 67% year to date.

SEANA SMITH: Yeah, it's been a tough year for them.

DAVE BRIGGS: It popped today, but it's been a brutal year. My play is Carnival Cruise Line, speaking of brutal years. Shares are sinking today after the company said it would sell a billion dollars of new stock just months after raising a billion by selling bonds. Now, Carnival said it would use the proceeds for general purposes, which might include paying off debt maturing in 2023. The sale will dilute shares, say analysts, around 8.5%. And it sent shivers through the whole industry.

It was on the heels of some positive news that the CDC dropped requirements for cruise ships to report COVID cases, which gave them all a pop. But then we go right back down. CCL down more than 11% today and 54% year to date. Royal Caribbean-- again, we mentioned the whole sector spread-- also down about 9% on the afternoon. So it's been a very rough go for cruise stocks. We've talked about our hesitancy to get back on a cruise ship, but what about getting back on as an investor, Rachelle? Are you just man overboard at this point? I'm not sure what's going to give that sector a rebound.

RACHELLE AKUFFO: I mean, it's tough because we do keep seeing these ebbs and flows. Like, we see the good news, and we see these cruise stocks pop when we thought cruises were going to be back full force. But then you have this announcement when you're thinking about debt. Thinking about all the losses they took on during COVID, thinking about fuel costs, all these things start to add up.

And even with this good news, I mean, we saw that Virgin Voyages, Richard Branson's Virgin Voyages, becoming now the first major cruise line to drop the COVID test requirement. So it's sort of these ebbs and flows. In terms of investing, I can't necessarily say this is back full swing, as perhaps we're seeing with airlines. Not the same amount of pent-up demand, though, for cruises. So I think they might be in for a tougher battle.

SEANA SMITH: Yeah, of course. And also just the question about whether or not some of that demand, at least in the short-term, has peaked. We talk about the fact that the economy could be slowing when people are pulling back on spending. Some of the things that they're opting not to do is travel. So it could be a rough couple of months here, a couple of quarters, not only for some of these cruise lines, but what we're talking about the travel industry at large.