Shares of Chipotle Mexican Grill (CMG - Get Report) closed own about 4.50% today on very heavy trading volume following the closure of one of their restaurants in Sterling, VA. after multiple reports of customers falling ill after eating there.
Bill Ackman's Pershing Square is the largest holder of Chipotle shares and the holding's lost about $74 million at midday Tuesday.
Customers reported symptoms such as vomiting, diarrhea, severe stomach pain, dehydration, and nausea, according to the website iwaspoisoned.com.
Eight reports were made to the site, showing 13 customers fell sick after eating there from July 14 through July 15, Business Insider first reported.
"We are working with health authorities to understand what the cause may be and to resolve the situation as quickly as possible," Jim Marsden, Chipotle's executive director of food safety, told TheStreet. "The reported symptoms are consistent with norovirus. Norovirus does not come from our food supply, and it is safe to eat at Chipotle."
The illnesses only have impacted the Sterling restaurant and Chipotle plans to reopen that location on Tuesday after sanitizing it, Marsden added.
What's Hot On TheStreet
Netflix is so impressive: By trouncing quarterly subscriber estimates and issuing solid guidance, Netflix Inc. (NFLX - Get Report) did much to put to rest fears that its stock had gotten ahead of itself following a 31% rise so far in 2017, TheStreet's Eric Jhonsa says. The streaming giant also showed that it has reached a point where its sheer scale provides a competitive edge that makes it hard for even deep-pocketed tech and media rivals to slow it down, Jhonsa adds.
Overall, Netflix is an unstoppable beast because millennials like watching movies on the couch.
Tesla is bizarre: Tesla Inc. (TSLA - Get Report) is adding two new executives from major media corporations to its board of directors after investors urged the electric carmaker to add members without close ties to CEO Elon Musk, TheStreet reports.
James Rupert Murdoch, the CEO of Twenty-First Century Fox Inc. (FOXA) , and Linda Johnson Rice, the chairman of Johnson Publishing Co., will join Tesla's board, according to a company blog post.
Though the new board members are indeed independent, according to BoardEx, a relationship mapping service of TheStreet Inc., they lack experience in the car industry and have loose ties to the technology industry at best. Seeing as Tesla is burning through cash at a startling pace and is undergoing a Model 3 production ramp, adding experienced car or tech people to the board would have seemed like a better idea.
Vicious downgrade on one hot tech stock: Barclays downgraded Advanced Micro Devices (AMD - Get Report) to a price target of $9 on Tuesday TheStreet reports, giving it a rating of underweight from equal weight, saying that the valuation was pricing in a high degree of success but there is little evidence of share gains.
Barclays analyst Blayne Curtis predicted the stock would crash 35% from current levels. Since the beginning of June, shares of AMD have gained 23.5%, while Nvidia (NVDA - Get Report) has risen almost 14%, on the back of a surge in demand for GPUs used to mine an alternative cryptocurrency called Ethereum (the units are known as Ether), TheStreet's Annie Palmer reports. A wave of bullish reports have come out since then saying that the boost in cryptocurrency mining demand could help Nvidia and AMD rise above a seasonally weaker fiscal second quarter, among other benefits.
But thanks to a steep drop in the prices of cryptocurrencies, the benefits may already be priced into the current quarter, with little left to gain thereafter, according to analysts.
Deutsche Bank analyst Sherri Scribner said expectations for Apple are too high, warning investors that they might be disappointed with iPhone sales growth in 2018 and 2019.
A market overly optimistic on future sales is "ignoring the fundamental challenges Apple faces in the smartphone market," Scribner wrote. Those challenges include saturation due to elongated refresh cycles, declining share, increased Chinese competition and a growing secondary market.
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