- 3 Big Scoops
- Posts
- Will GameStop Stock "Roar" Again?
Bulls, Bitcoin, & Beyond
Market Moves Yesterday
S&P 500 @ 5,277.51 ( ⬆️ 0.80%)
Nasdaq Composite @ 16,735.02 ( ⬇️ 0.012%)
Bitcoin @ $69,094.23 ( ⬆️ 0.66%)
Hey Scoopers,
Happy Monday! Here’s what we’re covering today:
👉 Roaring Kitty unveils GameStop position
👉 Boeing gains post Fitch rating update
👉 Stock buybacks top $200 billion in May
So, let’s go 🚀
Market Wrap 📉
Despite a volatile week, all three major indices registered a sixth positive month out of seven in May 2024. Here’s how they performed last month:
👉 Dow Jones Industrial Average added 2.3%
👉 The S&P 500 rose 4.8%
👉 The Nasdaq gained 6.88%
A chunk of the rally in May can be tied to the surge in Nvidia, which released blockbuster earnings less than two weeks back. The AI giant surged roughly 27% in May and has more than doubled in 2024.
The economic data released on Friday morning come in line with forecasts. The core personal consumption expenditures price index rose 0.2% in April, compared to March, while it rose 2.8% year over year, slightly above estimates of 2.7%.
Trending Stocks 🔥
Gap - The clothing retailer soared 28.6% after posting fiscal Q1 earnings per share of $0.41, higher than estimates of $0.14.
MongoDB - The developer data platform fell 24% after it trimmed Q2 guidance. It expects to earn $0.475 per share on revenue of $462 million in Q2, lower than estimates of $0.58 per share and $470 million, respectively.
Lionsgate Studios - Shares of the film studio company gained over 3% after Citi initiated coverage with a “Buy” rating. Citi said the company’s decision to spin off its Starz segment should help it expand profit margins moving forward.
GameStop Stock is On the Move
Meme stock GameStop is rallying on speculation that Keith Gill, the man who inspired the epic short squeeze in 2021, could have a huge position in the video game retailer.
Gill, who goes by DeepFu-----Value on Reddit and Roaring Kitty on YouTube and X, reappeared last night after he posted a screenshot on what could be his portfolio that showed a significant amount of GameStop shares.
The popular retail trader holds 5 million shares of GME worth $115.7 million. The account also showed a position of 120,000 call options with a strike price of $20 that expire on June 21st. GME’s stock price stood at 23.14 on Friday.
Gill returned to social media three weeks ago, sparking an eye-popping rally in GameStop as the stock more than doubled in May. The gaming retailer, meanwhile, took advantage of the rally and raised over $900 million via a stock sale, shoring up its liquidity position.
Fitch Maintains Rating on Boeing
Boeing shares rose close to 3% after Fitch Ratings maintained its rating on the aircraft manufacturer while lowering forecasts for its aircraft deliveries and free cash flow.
Fitch expects Boeing to end 2024 between 350 and 370 deliveries for the 737 Max plane and between 65 to 70 deliveries for the 787 plane. The ratings agency also expects Boeing’s free cash flow to enter negative territory in 2024.
Earlier this month, Boeing emphasized aircraft deliveries would be sluggish and the company would burn $4 billion in cash this year.
Stock Buybacks Surge in May
Companies shattered records in May with a surge in stock buybacks, suggesting that corporates expect future earnings to expand.
About 154 companies announced $201 billion in planned buybacks, marking an all-time high. Apple led the charge, unveiling a $100 billion buyback program, the largest on record.
S&P 500 companies repurchased over $200 billion in stock in Q1 of 2024, the highest quarterly total since Q3 of 2022.
Headlines You Can't Miss!
Treasury yields slip as investors look out for key jobs data this week
India’s stock market surges to record high following exit poll data
AMD launches new AI chips as battle intensifies
OPEC+ extends crude production cuts into 2025
Crypto exchanges see $3 billion in Ethereum outflows
Chart of The Day
There are just six trillion-dollar companies in the world, one of which is Saudia Aramco, an energy heavyweight.
Saudi Aramco went public in December 2019, raising $25.4 billion and valuing the company at $1.7 trillion.
Its proven reserves total 259 barrels of oil equivalent, much higher than ExxonMobil (17.7 billion) and Chevron (11.2 billion).
Meme of the Day
DISCLAIMER: None of this is financial advice. The newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions. Please be careful and do your own research.