Shares of Carvana and Beyond Meat surged Friday, making them the latest companies to be rewarded by investors after announcing layoffs or cost cuts in recent weeks amid a challenging economic environment, as Wall Street analysts have largely cheered the cost-saving measures.
Shares of Beyond Meat surged nearly 22% despite the plant-based foods maker reporting dismal quarterly revenue and profits, with investors apparently optimistic about the company’s plans to save costs by laying off 4% of its workforce.
Online used-car retailer Carvana’s stock jumped 40% on Friday, a day after saying that it is aggressively reducing costs as consumer demand takes a hit from high inflation and the prospect of a recession.
Shares of popular stock trading app Robinhood rose 12% Wednesday after it reported dismal second-quarter earnings along with a 23% reduction of the company’s workforce, as Wall Street analysts widely cheered the cost-cutting measures.
E-commerce platform Shopify’s stock, meanwhile, is up roughly 30% since warning of lower consumer spending and announcing layoffs on July 26, although its shares initially plunged up to 14% on the news before rebounding.
In late July, Bloomberg reported that automaker Ford planned to cut 8,000 employees as part of its transition toward electric vehicles—the stock rallied 2% on the day and is up nearly 20% since then.
Even Tesla’s stock, which has fallen precipitously since April, ticked up 1% after the company announced a small wave of layoffs July 12, weeks after CEO Elon Musk warned he had a “super bad feeling” about the economy and would reduce 10% of it the company’s workforce.