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Macy's set to shift to smaller stores, Coinbase denies any exposure to bankrupt crypto lenders

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Yahoo Finance Live looks at several of today's trending stocks, including Toys R Us coming to Macy's store location and ride-share company Lyft reportedly laying off two percent of its workers and stops renting its cars out to drivers.

Video Transcript

RACHELLE AKUFFO: Welcome back, everyone. Triple Play is on deck. And I'm kicking us off with my pick, retailer and mall staple Macy's. Now, apparently, small is the new big. Macy's is speeding up its plan to adapt to changing consumer needs by opening smaller stores outside of malls under its Market by Macy's banner. Now, three of these are coming in the fall, in addition to five they've already launched. Now these are about a fifth of the size of its full line locations. And they offer conveniences like order online and pick up in store.

Now, in a recent interview, Macy's chief stores officer Marc Mastronardi said customer behavior just keeps changing. And the more that we have the agility as an organization to shift and react, this feels like the next natural evolution. And you'll also see a familiar face at Macy's stores, Jeffrey the Giraffe, as Toys "R" Us will be in every Macy's store heading into the holiday shopping season.

So, now through October, you'll first start seeing them at the flagship locations, including Atlanta, Chicago, Los Angeles, and of course, where you are in New York City. But remember, it was that consumer pivot to online toy shopping that actually led to Toys "R" Us's 2017 bankruptcy. So we'll see if Macy's shift to experiential shopping can help both brands. Year to date, though, Macy's stock is down about 30%, but it is up 175% from where it was with its pandemic low. So, a shift there, but we'll have to see where it grows from there, Seana.

SEANA SMITH: Yeah, that's the big question, Rachelle. And we certainly have seen Macy's-- it's interesting when it comes to their brick and mortar strategy, right? Because in COVID, when we saw so many people turning to e-commerce, ordering everything online, the fear was that people wouldn't return to stores.

But when you take a look at the data, it simply doesn't seem to be the case. Simon Property Group was out with its most recent note, talking about foot trafficking. They're saying that some of their locations, their malls and their outlet locations, are actually seeing higher foot traffic than they did pre-pandemic. So people are excited to get out to shop in the stores.

You mentioned that partnership between Macy's and Toys "R" Us. People were able to buy Toys "R" Us products on Macy's website last year during the holiday season. Macy's saying that it saw all tremendous growth in its toy sales because of that partnership. So it makes sense that they're expanding that here, going forward. But we'll see whether or not it continues to lift shares.

All right, well, speaking of lift, my play is a Lyft. The Wall Street Journal reporting the company is laying off those 60 workers, equating to about 2% of its workforce. It also has stopped renting its cars to riders, making the announcement to a memo-- in a memo to employees. Now, in a statement to Yahoo Finance, Lyst saying, quote, "We have decided to discontinue Lyft's first party rentals business to focus on our best-in-class third party rentals with Sixt and Hertz. This decision will ensure that we continue to have national coverage and offer riders a more seamless booking experience."

The Journal also reporting that Lyft is reorganizing its global operations and consolidating some regions. The stock off about 66% since the start of the year. And now the news today coming amid worries over an economic slowdown, a looming recession. Dave, Lyft is just the latest company to scale back on some of its hiring plans or scale back its workforce in this case.

DAVE BRIGGS: Yeah, I was about to say, it's zooming out a little bit. It's kind of the macro sentiment that we're seeing across the sector, is people just not necessarily making massive layoffs, but slowing hiring and being more lean, being more nimble, being more agile, as we look at a potential recession. This doesn't seem like a major cut for them, just a smart business decision. You saw that from Apple the other day. They'll slow hiring in some key sectors. We've heard it from Meta. We've heard it from Amazon. We've heard it from several. And that will continue.

My play is Coinbase, with shares jumping on three little words-- "no financing exposure." The crypto exchange platform saying in a blog post they had no exposure to Celsius, Three Arrows Capital, nor Voyager Digital, each of whom filed for bankruptcy recently. Shares climbed 16% after the initial announcement. They fell back down to about 10 or 11, and they shot right back up toward the closing bell, up about 15%, in an otherwise very difficult year for the company, when they've tumbled 70% year to date.

Bitcoin, meanwhile, speaking of macro, continuing a strong run over the last week, well above 23,000 today. Ether up more than 25% in the last five days, now trading above 1,500. Fool me once, Rachelle. I'm not buying it. Yes, I'm waiting for the next shoe to drop. But are you buying it? Have we had a full crypto rally?

RACHELLE AKUFFO: I can't necessarily say it's a full crypto rally, though. I mean, a lot of people are waiting for this, this turning point with the Ethereum merger, which is supposed to make these transactions much faster. You're supposed to be paying less fees. But this has been something that literally, it's almost become the stuff of legend now. They've been talking about it for years now. But some of the tests have been successful. But as with anything to do with crypto, you kind of have to hold your breath.

And then when it comes to Coinbase, I thought it was interesting that they were differentiating themselves from, say, a Celsius platform, which really acts as almost like a CD account, whereas Coinbase is more of just a straight up crypto platform. So it's interesting that they're sort of distancing themselves so that some of this contagion that we're seeing in terms of the negative crypto fallout doesn't taint them as well.

SEANA SMITH: Yeah, it's interesting. When we talk about this rally that we've seen in crypto-- and Dave, I know you and I have talked about it-- it's just hard to get on board with it because you can't really find a reason why we've seen such a jump over the last couple of days other than the fact that people simply thought it was at an attractive price, all these crypto believers getting back in. And that's why we're back to 23,000. I don't know whether or not we're going to stay.

DAVE BRIGGS: It's almost meme stock esque at times.

SEANA SMITH: It sounds like that.

RACHELLE AKUFFO: Yeah, see, this is why Charlie Munger is like, no, this isn't it for me.