CNBC.com's MacKenzie Sigalos brings you the day's top business news headlines. On today's show, reporters from across the CNBC newsroom explain the GameStop phenomenon, in which a Reddit-fueled rally to punish short sellers is sending the stock skyrocketing above its fundamental valuation. Plus, a titan of the private equity industry steps back after an external review uncovered $160 million in payments to convicted sex offender Jeffrey Epstein.
GameStop shares are jumping again, but short sellers aren't backing down
GameStop is popping again after a wild session, pushing the stock back above $100 briefly, but short sellers betting against the brick-and-mortar video game retailer are nowhere near letting up.
Shares of GameStop jumped more than 30% to a high of $104.65 on Tuesday. The stock turned sharply higher after Social Capital's Chamath Palihapitiya said in a tweet that he bought GameStop call options betting the stock will go higher. Trading was halted multiple times due to volatility.
Apollo Global Management CEO Leon Black paid child sex predator Jeffrey Epstein $158 million for financial advice from 2012 through 2017, despite knowing Epstein pleaded guilty to sexually abusing an underage girl in 2008, a probe by a law firm retained by Apollo has found.
Those newly disclosed payments are a whopping three times more than the minimum of $50 million in payments Black was reported in October to have made to the controversial money manager Epstein during that time frame.
Beyond Meat shares soar 26% as company teams up with PepsiCo to make plant-based snacks and drinks
Beyond Meat and PepsiCo announced Tuesday that they've formed a joint venture to create, produce and market snacks and drinks with plant-based substitutes.
Shares of Beyond jumped as much as 31% in morning trading on the news, while Pepsi's stock rose about 1%. The run in Beyond Meat may have been helped by hedge funds rushing to cover their bets against the stock, a trend unfolding in may heavily-shorted names this year. More than 38% of the Beyond Meat shares available for trading are sold short, according to FactSet.
