Diamonds and Dogs
Bed Bath & Beyond (BBBY) needs a makeover. The home furnishing retailer is spiking 27% on news activist investors want to replace the entire board of directors. Bed Bath & Beyond used to be the go-to home-supply store for many consumers, from college students moving into their dorm room to suburbanites furnishing their first house. However, Bed Bath & Beyond has been a "prime" target of Amazon and others. The activist investors want the company to revamp its inventory and consider selling noncore assets, and tying executive compensation more closely with performance. Just want shareholders want to hear.
Carnival (CCL) is up on the shoals. The world's largest cruise operator is down 5% following earnings. The first quarter earnings were actually better than expected as sales rose 10.4% to $4.67 billion. But Carnival went on to lower second quarter and full year guidance, blaming higher fuel prices and the impact of a strong dollar. Bookings remain solid so hopefully Carnival can turn things around.