Stocks End the Day in the Red Following Release of Fed Meeting Minutes, Anticipating Nvidia Earnings

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BuzzFeed’s stock (BZFD) saw a significant jump of 83% in early trading after Vivek Ramaswamy, a former Republican presidential candidate, disclosed that he holds a 7.7% stake in the company and plans to advocate for changes. According to an SEC filing, Ramaswamy believes that BuzzFeed’s stock is undervalued and presents a lucrative investment opportunity. He aims to engage with the board of directors to discuss operational and strategic options to enhance shareholder value.

BuzzFeed, a once highly-regarded digital media company, faced challenges after going public through a special purpose acquisition company (SPAC) in 2021. Since then, its shares have plummeted by over 90%. Ramaswamy’s involvement in the company has raised concerns about its strategic direction, particularly given his reputation as an “anti-woke” activist who is critical of corporate involvement in social and environmental issues.

In an effort to achieve profitability, BuzzFeed underwent significant changes last year. The company announced the closure of its news division and a reduction in staff by 15% (about 180 employees) in April 2023. Earlier this year, BuzzFeed revealed plans to lay off an additional 16% of its workforce to cut costs and position the company for greater agility, sustainability, and profitability.

Aside from the layoffs, BuzzFeed also sold Complex Networks, a digital media company it acquired in 2021 for roughly $300 million, to the NTWRK live video purchasing platform in a cash deal worth $108.6 million. BuzzFeed received around $5.7 million in severance and office-related fees in addition to the purchase price. In its recent financial report, BuzzFeed disclosed an adjusted EBITDA loss of $11.3 million in the first quarter but anticipates the current quarter to show an adjusted EBITDA ranging from a $4 million loss to a $1 million profit, roughly consistent with the previous year’s performance at the midpoint.

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