Companies/Industries

Company News: Wal-Mart, GameStop, Trading Firms, Adobe, Toyota, FedEx


• Not content to be the nation’s No. 1 seller of new merchandise, Wal-Mart Stores (WMT) will soon accept used video games in exchange for gift cards and resell them. Used games, a $1.6 billion business in the U.S., offer fatter profit margins than new iterations at retailers such as GameStop (GME). Creating a secondary market—and giving customers store credit that must be used at its stores—will let Wal-Mart prime sales of new merchandise.

• U.S. regulators and New York Attorney General Eric Schneiderman have launched investigations into whether high-frequency trading firms are getting an inside track from major exchanges. The officials are probing whether trading platforms give speed-focused traders discounts on fees or priority over institutional and retail investors when processing orders.

• Moving its software from boxes on shelves to the computing cloud keeps paying off for Adobe Systems (ADBE). The number of subscribers using programs such as Photoshop on its “Creative Cloud” climbed 28  percent in its first quarter, to 1.84  million. Adobe says it will have 4  million cloud subscribers by the end of 2015.

Toyota Motor (TM) agreed to pay $1.2 billion to end a U.S. criminal probe over design glitches that caused some of its cars to accelerate suddenly. Four years ago the problem prompted the automaker to recall 10  million vehicles, but the U.S. Department of Justice accused it of concealing information. As part of the settlement, Toyota admitted wrongdoing.

FedEx (FDX) said the severe winter chilled its recent performance, as a string of storms cut shipping volumes. In normal weather, FedEx said, its operating profit would have been $125  million higher. It cut its 2014 forecast.

Kyle-stock-190
Stock is an associate editor for Businessweek.com. Twitter: @kylestock

Toyota's Hydrogen Man
LIMITED-TIME OFFER SUBSCRIBE NOW

Companies Mentioned

  • WMT
    (Wal-Mart Stores Inc)
    • $85.94 USD
    • 1.71
    • 1.99%
  • GME
    (GameStop Corp)
    • $33.1 USD
    • 0.41
    • 1.24%
Market data is delayed at least 15 minutes.
 
blog comments powered by Disqus