2023 has been a turbulent year in finance. Against a backdrop of rising interest rates, high inflation, and the ebbing of pandemic-era restrictions, some companies have prospered, while others have failed.
Here are some of the biggest winners and losers from the first half of 2023:
Booming companies
- The generative AI boom led to impressive stock gains for tech titans Microsoft and Alphabet, which both invested heavily in AI. (Apple’s stock hit a record high, though the company doesn’t seem to share its competitors’ enthusiasm for generative AI.) And a few weeks ago, Nvidia, maker of chips that enable AI, was valued at $1 trillion. It was only the seventh US company to hit this milestone. Five tech stocks alone pushed the S&P 500 up 9% this year, Reuters reported.
- Walmart topped the Fortune 500 list for the eleventh year in a row. It reported revenue gains of 7.6% in its first quarter, while other large retailers, like Target, Home Depot, and Macy’s, saw losses. Most of Walmart’s growth came from sales of groceries and non-discretionary items, a sign that customers are tightening their belts.
- Exxon had record-high first-quarter profits. It reported income of $11.43 billion, compared with $5.48 billion a year ago. Higher oil and gas prices, coupled with increased demand due to the waning of the pandemic, were factors in its growth, the company said during an earnings call. Production also rose 40% since last year.
Bankruptcies
- Chapter 11 filings have been higher this year than they have been for more than a decade, the New York Times reported. Household names that filed for bankruptcy in the first half of 2023 included David’s Bridal, Party City, and Serta Simmons Bedding. Weight-loss company Jenny Craig went out of business entirely.
- Bed Bath & Beyond went out of business in 2023, leaving shoppers bereft of its iconic blue coupons. Supply chain issues and a weak web presence contributed to the retailer’s demise, as did an ill-advised move to stock products from its in-house brands, rather than the familiar brands consumers expected.
- Instant Brands, maker of the Instant Pot and other brands like CorningWare, Snapware, and Pyrex, filed for Chapter 11 in June. The Instant Pot attained viral fame a few years after its launch in 2010, and sales surged during the pandemic, when consumers were cooking more meals at home. Post-pandemic, sales dropped and the market for Instant Pots appeared to achieve saturation.
- Virgin Orbit filed for Chapter 11 after its failed LauncherOne flight made it difficult for the company to raise funds.