- 3 Big Scoops
- Posts
- Is GameStop On the Move?
In partnership with
Bulls, Bitcoin, & Beyond
Market Moves Yesterday
S&P 500 @ 5,214.08 ( ⬆️ 0.51%)
Nasdaq Composite @ 16,346.26 ( ⬆️ 0.27%)
Bitcoin @ $62,817.61 ( ⬆️ 0.73%)
Hey Scoopers,
TGIF! Here’s what we’re covering today:
👉 GameStop to the moon!
👉 Jobless claims come above estimates
👉 Revolut launches crypto exchange
So, let’s go 🚀
Market Wrap 📉
All three major indices rose yesterday, with the Dow Jones Industrial Average notching a seventh winning day as new jobless claims data rekindled hope for interest rate cuts in the second half of 2024.
Stocks moved lower in April after a string of hotter inflation reports spurred concerns that the Federal Reserve will be forced to maintain current interest rates in the near term.
However, according to investment bank UBS, upcoming inflation data will start to trend lower, starting with April’s consumer price index (CPI), set to be released next week.
UBS explained moderating housing costs and lower consumer spending as reasons for its lower inflation estimate.
Trending Stocks 🔥
Yelp - Shares of the restaurant review site slid 4% as Yelp posted light guidance for Q2. It reported adjusted earnings of $0.20 per share in Q1, above estimates of $0.06 per share, while revenue stood at $333 million, in line with estimates.
Sweetgreen- The salad chain popped over 15% after reporting sales of $158 million in Q1, above estimates of $152 million.
Akamai Technologies - The cloud company slid over 10% due to weak Q2 guidance. It forecast sales between $967 million and $986 million with adjusted earnings between $1.51 and $1.56 per share in the June quarter, lower than estimates of $1 billion and $1.63 per share, respectively.
GameStop Gains Pace
Shares of GameStop surged 13% yesterday, registering its highest close since December, indicating that meme stock mania might stage a comeback. GME stock closed at $13.13 and is up over 80% in the last two weeks.
The stock surged on a trading volume of 25.39 million shares, well above its average trading volume of 6 million shares.
The recent gains might reignite memories of the meme stock frenzy that shocked equity markets in 2021, sending shares of AMC and GameStop significantly higher.
A group of retail investors on Reddit initiated a short squeeze of GME stock in 2021, increasing share prices from $1 in July 2020 to $81 in January 2021. Short interest as a percentage of GME’s public float of shares is 24.1% right now.
Earlier this year, GameStop said it was reducing its workforce to boost profitability after it missed consensus revenue and earnings estimates in fiscal Q4 of 2024.
GameStop remains fundamentally weak as it continues to wrestle with falling sales and narrowing profit margins.
Learn how to become an “Intelligent Investor.”
Warren Buffett says great investors read 8 hours per day. What if you only have 5 minutes a day? Then, read Value Investor Daily.
Every week, it covers:
Value stock ideas - today’s biggest value opportunities 📈
Principles of investing - timeless lessons from top value investors 💰
Investing resources - investor tools and hidden gems 🔎
You’ll save time and energy and become a smarter investor in just minutes daily–free! 👇
Weekly Jobless Claims Surpass Estimates
Initial filings for unemployment benefits have hit the highest levels since August 2023, a sign that a robust labor market is feeling the heat. Jobless claims totaled 231,000 for the week, higher than estimates of 214,000.
Nonfarm payrolls increased by 175,000 in April, also below estimates of 240,000. Moreover, the unemployment rate stood at 3.9%, ahead of estimates of 3.8%.
So why is Wall Street cheering the bad news? Well, higher unemployment should translate to weaker consumer spending, driving inflation lower and eventually leading to interest rate cuts.
The Fed is closely watching the job numbers as regulators want to bring back inflation to 2%. Markets expect the central bank to begin lowering rates in September.
Revolut Launches Crypto Exchange
Revolut, one of the U.K.’s most popular fintech companies, just announced the launch of Revolut X, a cryptocurrency exchange.
Source: CNBC
Here are some of the features Revolut offers:
Access to over 100 tokens
Lower flat fees of 0.00% for makers and 0.09% for takers
Integration with Revolut retail accounts
Trading and analytics tools, as well as chart integration with TradingView
Cold storage facility for the majority of funds
Revolut aims to compete with other exchanges by offering easy on-and-off ramping, a user-friendly interface, and lower fees.
Headlines You Can't Miss!
Chinese EV maker Zeekr prices IPO at $21
European companies in China are under pressure due to slower growth
Apple apologizes for iPad Pro ad
TikTok begins to label AI-generated content
Donald Trump pledges to accept crypto payments for Presidential race
Chart of The Day
India’s stock market index, the Nifty 50, has outpaced other major indices, including the S&P 500, Japan’s Nikkei, and the Hang Seng. The Nifty 50 is an index of the 50 largest stocks in India.
The country’s bull run has allowed it to break several records recently. For instance, India’s cumulative stock market cap surpassed $4 trillion for the first time in 2024.
Moreover, India-focused exchange-traded funds have attracted more than $8.5 billion in inflows over the year.
After years of underperformance, Japan’s equity market has outpaced the S&P 500 in the last five years, touching a record high for the first time since 1989.
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.