Tag Archives: GameStop Corp

Bed Bath & Beyond jumps 50% to lead ‘nonsense’ rally in meme stocks; AMC gains 15%

January 11, 2023 Admin Leave a comment

A “Store Closing” banner on a Bed Bath & Beyond store in Farmingdale, New York, on Friday, Jan. 6, 2023.

Johnny Milano | Bloomberg | Getty Images

A group of highly speculative stocks rallied double digits on Wednesday as retail investors pushed meme names up again in the new year following a dismal 2022.

Bed Bath & Beyond rallied a whopping 50% to trigger the trend in morning trading Wednesday. Shares of GameStop, the original star of 2021’s meme stock mania, climbed more than 10%. AMC Entertainment soared 18%.

Meme stocks rallying one more time

Stock	Short interest % float	Wed. Gain	% off 52W high
Bed Bath & Beyond (BBBY)	48.9%	60%	-89%
AMC (AMC)	21%	15%	-78%
GameStop (GME)	21%	8%	-62%

Source: FactSet

The rally in Bed Bath & Beyond was initially triggered by news that it would lay off more employees in an attempt to reduce costs and stay in business.

The home goods retailer told employees that it is eliminating the chief transformation officer role, which is held by Anu Gupta, on the same day it reported disappointing fiscal third-quarter results. Bed Bath & Beyond is approaching a potential bankruptcy, as its sales decline and losses grow.

“We don’t love the strength in nonsense stocks like AMC, CVNA, GME, BBBY, PRTY, etc.,” said Adam Crisafulli, founder of Vital Knowledge. “This just means people are blindly chasing.”

During early 2021, a band of retail traders joined forces on social media to bid up a slew of heavily shorted stocks, creating massive short squeezes that inflicted high pain on short sellers. These meme stocks experienced big pullbacks last year when risk sentiment shifted amid aggressive rate hikes. GameStop fell 50% in 2022, while AMC tumbled 75% and Bed Bath & Beyond plunged 82%.

While the short interest in these names has come down from its peak after the jaw-dropping episode, it still remains much higher than average.

About 48% of Bed Bath & Beyond’s float shares are sold short, compared with an average of 5% short interest in a typical U.S. stock, according to S3 Partners. For GameStop, the short interest stands at 21%, down from more than 100% at the height of the meme stock mania in 2021, according to FactSet. AMC has also 21% of shares sold short.

A short squeeze happens when a stock jumps sharply higher, it forces short sellers to buy back shares in order to limit their losses. The short covering tends to fuel the stock’s rally further.

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Apple, Amazon, Microsoft and Google will fuel the next rally

December 12, 2022 Admin Leave a comment

To build a fire — but not destroy the market by doing so. That’s the goal right now. It’s not as easy as in the famous Jack London short story (“Too Build a Fire”) where in the end the survivors profit rather than freeze to death in their sleep. In the early part of this decade, we saw the rise of Robinhood (HOOD) and the distribution of investments from the serious to the ephemeral. These days, Robinhood has the appearance of one gigantic bonfire of young peoples’ money. The gamification concept was real and the exodus of investors was noisy — culminating with the ridiculous self-immolation of GameStop (GME), AMC Entertainment (AMC) and the meme stocks. Those who fought this trend abandoned Twitter, hired bodyguards and tried to hide from the angry mob that was attempting to will stocks higher by savaging the sellers. No tinder from these clowns. Then there was the much larger-than-expected romp to crypto. The people who bought it somehow ensconced their brains into something they didn’t understand. As a result, they overran their brains and outsourced them to others who claimed to know more than they did. You had to oppose a phalanx of vociferous, self-promoting scoundrels and their fintech allies in government and venture capital — all of whom should feel shame, but shame eludes them. They will not accept their intellectual disgrace, and instead continue to argue that it was all about blockchain and DeFi (decentralized finance). They want to explain to you why they got it right and you got it wrong, even as they lost everything and you were safe keeping your cash at JPMorgan. I wish I had a hubris scale, something like a gigantic thermometer that could measure these arrogant promoters and give them the hook when they contend that they are smarter than you for believing in something with a best-use case as untraceable ransom money. But this era is running out. It’s going to be done with a fight, of course, as we see its representatives defend themselves with specious arguments that sound so self-serving and outright phony that even neutral minds are repelled and rebelling. The money furnace that was Robinhood burns blandly versus the napalm of crypto. The interests that defended crypto can’t go quietly because they will empty the coffers of their crypto banks and cause waves of bankruptcies; the $34 billion that we know of that was destroyed by Sam Bankman-Fried — the disgraced former boss of failed crypto exchange FTX — pretty much propped up everything. We keep getting stung by the alleged due diligence done by so many who should have known better, with only a couple of institutions writing their investments to nothing, along with their explanations, or lack thereof. Here’s the problem: If it all goes away — crypto and all the institutions supporting it — the money that’s left won’t help push equity prices higher. It was once a magnet to a couple trillion dollars. Now I wonder if there’s $400 billion to the entire edifice. The whole thing reminds me of a line from the film “Beau Geste,” when two of the main characters are under attack: “You’ll do your duty better dead than you ever did alive.” The biggest guns are most likely liquidating as they talk, the duplicitous cads. They will tell us that we are fools not to believe in blockchain as if somehow that is dispositive to something other than lies and blunders. My point is this: The crypto con and the Robinhood dollar conflagration can’t produce enough money to buoy stocks. There’s not enough left in these embers to do anything but marvel at how much there used to be and how little bankruptcy produces. No matter how many hearings, we will never know the full culpability behind those in Congress and those in the Securities and Exchange Commission who opposed Chair Gary Gensler. He came on CNBC specifically to warn us of made-up coins and institutions that give you too high a return compared to cash in a real bank. Self-serving cryptocurrency players have been critical of the SEC. They want to school Gensler and let him know he can only go so far before running into all the well-endowed entities and their secret paid supporters. The horror! The horror! So where else will the money come from? Unlike the chimerical trillions that vanished into thin crypto air, the fuel will come from four stocks that have a combined total of $6 trillion to donate: Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL) and Amazon (AMZN). There is simply too much money in these names to take us higher, or at least how high we can go after the Federal Reserve’s next meeting this week. But I think some of that investor money will be transferred into the stocks of companies that have the most voracious buybacks. Those are the companies without enough stock available to handle all the money that will flood in. Money in those four stocks will be pulled out, kicking and screaming, until the valuations become earthly — better than Meta Platforms (META) and more like the S & P as they are revealed to be mortal. Not until then can the rally start in earnest. Can these valuations be played out? It’s happening as you read this. Of course, there’s one other enemy to the advance and it’s a powerful one: The 4.5% yield from 2-year Treasuries is outrageously bountiful in a market where anything north of 4% in equities is likely tied to plummeting oil. However, we cling to the oils, betting that they can maintain their well above market prices when Russia can’t produce its endless reserves and China goes voracious upon reopening. I think we will win. We will hold Apple (AAPL), Microsoft (MSFT), Alphabet (GOOGL) and Amazon , even as we’ve trimmed them higher. Their spiral down to earth, however, will be painful. If we hadn’t sold some, it would be getting late in the game. But I suspect there’s more pain to come. Why take it? Because these companies still have value, even though it won’t surface until the selling’s done and we don’t know when that will occur. It’s too dangerous now to depart, although Apple could see $120 and Microsoft a 10-point decline. Amazon and Alphabet control their own destinies through headcount reductions. The good news? The selling could end after the Fed meeting. The bad news: If it does, there will not be enough rocket fuel. The big four need to shed a trillion minimum to power things higher. I think it will happen in time. Which would mean a brutal week until the transfer begins to be made. Hold on to what you have, but get ready to be lifted by the stocks with the strongest buybacks. That’s where the accumulation will matter the most. (See here for a full list of the stocks in Jim Cramer’s Charitable Trust.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust’s portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.

Satya Nadella, chief executive officer of Microsoft Corp., during the company’s Ignite Spotlight event in Seoul, South Korea, on Tuesday, Nov. 15, 2022. Nadella gave a keynote speech at an event hosted by the company’s Korean unit.

SeongJoon Cho | Bloomberg | Getty Images

To build a fire — but not destroy the market by doing so.

That’s the goal right now. It’s not as easy as in the famous Jack London short story (“Too Build a Fire”) where in the end the survivors profit rather than freeze to death in their sleep.

In the early part of this decade, we saw the rise of Robinhood (HOOD) and the distribution of investments from the serious to the ephemeral. These days, Robinhood has the appearance of one gigantic bonfire of young peoples’ money. The gamification concept was real and the exodus of investors was noisy — culminating with the ridiculous self-immolation of GameStop (GME), AMC Entertainment (AMC) and the meme stocks. Those who fought this trend abandoned Twitter, hired bodyguards and tried to hide from the angry mob that was attempting to will stocks higher by savaging the sellers. No tinder from these clowns.

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Fund manager names 3 recession-proof stocks and reveals how to rescue portfolio

October 26, 2022 Admin Leave a comment

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GameStop (GME) Q2 2022 earnings

September 7, 2022 Admin Leave a comment

SAN RAFAEL, CALIFORNIA – DECEMBER 08: Customers enter a GameStop store on December 08, 2021 in San Rafael, California. Video game retailer GameStop will report third quarter earnings today after the closing bell. (Photo by Justin Sullivan/Getty Images)

Justin Sullivan | Getty Images News | Getty Images

GameStop said Wednesday that quarterly sales declined and losses widened, as it burned through cash and inventory swelled.

The video game retailer also disclosed a new partnership with crypto exchange FTX.

Shares of the company rose about 10% in after hours trading.

In the second fiscal quarter ended July 30, the company’s total sales dropped to $1.14 billion from $1.18 billion in the year-ago period. Its losses widened to $108.7 million, or 36 cents per share, compared with a loss of $61.6 million, or 21 cents, a year prior.

GameStop’s results cannot be compared with estimates because too few analysts cover the company. It did not provide a financial outlook and hasn’t provided one since the start of the pandemic.

The brick-and-mortar retailer is trying to adapt its business to a digital world. It’s gotten new leadership, including board chair Ryan Cohen, the founder of Chewy and former activist investor for Bed Bath & Beyond, and CEO Matt Furlong, an Amazon veteran. It’s also looked to new ways to make money, including nonfungible tokens.

But the company has struggled to drive profits, leading it to trim costs and shake up leadership. Last month, it fired chief financial officer Mike Recupero and laid off employees across departments. Accounting chief Diana Jajeh stepped in as the company’s new CFO.

Furlong urged patience on an investor call on Wednesday, saying GameStop must go through a significant transformation to keep up with customers.

“Our path to becoming a more diversified and tech-centric business is one that obviously carries risk and will take time,” he said. “This said, we believe GameStop is a much stronger business than it was 18 months ago.”

GameStop’s new initiatives have come at a high cost. It had $908.9 million in cash and cash equivalents at the end of the quarter — a little more than half of what it had at the end of the year-ago period.

Inventory ballooned to $734.8 million at the close of the quarter. That’s up from $596.4 million at the close of the prior year’s second quarter. The company said in a release that it intentionally bulked up on merchandise to keep up with customer demand and cope with supply chain challenges.

Furlong said on the call that the company had to spend money to modernize its business after years of underinvestment. Among its moves, it hired more than 600 people with talent in areas such as blockchain while it reduced shipping times, so customers get purchases in one to three days.

Changing it up

Now, he said, the company is focused on new priorities: becoming profitable, launching proprietary products and investing in its stores. He said it is lowering costs, too. Expenses decreased by 14% from the first quarter of the year, including some reductions that came from the layoffs.

“We’re going to retain a strong focus on cost containment and continue promoting an ownership mentality across the organization,” he said.

As overall sales fell, he pointed to growth of newer businesses. GameStop launched an NFT marketplace in July, which is open to the public for beta testing. It allows users to connect their own digital asset wallets, including the recently launched GameStop Wallet, so they can buy, sell and trade NFTs for virtual goods.

Sales attributable to collectibles rose from $177.2 million in the prior year’s second quarter to $223.2 million in the most recent one.

NFTs trade on FTX, the retailer’s new partner. “In addition to collaborating with FTX on new ecommerce and online marketing initiatives, GameStop will begin carrying FTX gift cards in select stores,” GameStop said in a release.

FTX was founded by billionaire former Wall Street trader Sam Bankman-Fried, 30. He has become a lender of last resort for crypto firms that have struggled as the assets have declined sharply since late last year.

The agreement with FTX appears to play into GameStop’s status as a meme stock.

The company’s shares have seen sharp fluctuations in value. Over the past year, shares have swung from $19.39 to $63.92. The company’s stock is down about 36% so far this year, bringing the company’s value to $7.31 billion.

Even as the company pivots more to e-commerce, Furlong said that stores remain an important way to connect with customers and to fulfill online orders.

GameStop rolled out a new compensation model for U.S. store leaders, he said. Each store leader can get $21,000 in stock, which vests over three years. They can also get additional pay through company stock on a quarterly basis, depending on their performance.

It is also raising hourly pay for some store employees, but he did not share the specific wage.

Read GameStop’s earnings release here.

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Business

GameStop CFO is leaving the company, retailer announces layoffs

July 7, 2022 Admin Leave a comment

A screen displays the logo and trading information for GameStop on the floor of the New York Stock Exchange (NYSE) March 29, 2022.

Brendan McDermid | Reuters

GameStop said Thursday its Chief Financial Officer, Mike Recupero, is leaving the company and that it will make staff cuts across departments as part of an effort to turn around the videogame retailer and drive growth.

CEO Matt Furlong announced the changes in a memo to employees, which was obtained by CNBC. Diana Jajeh, the company’s chief accounting officer, will become CFO.

In the memo, Furlong said the company has to take bold steps as it invests in its digital future.

“This means eliminating excess costs and operating with an intense owner’s mentality,” he said. “Everyone in the organization must become even more hands-on and embrace a heightened level of accountability for results.”

Shares of the company fell more than 6% in extended trading after gaining more than 15% during the regular session.

Here’s the full memo:

All,

Change will be a constant as we evolve our commerce business and launch new products through our blockchain group. After investing heavily in personnel, technology, inventory and supply chain infrastructure over the past 18 months, our focus is on achieving sustained profitability. This means eliminating excess costs and operating with an intense owner’s mentality. Everyone in the organization must become even more hands-on and embrace a heightened level of accountability for results.

With that said, I’m getting in touch today to share three organizational updates:

1. After making more than 600 corporate hires in 2021 and the first half of 2022, we have a stronger understanding of our transformation needs. This has positioned us to right-size headcount across several corporate departments. Today, we’re making a number of reductions to help us keep things simple and operate nimbly with the right talent in place.

2. We’re going to be making a significant investment in our Store Leaders and field employees, who play a critical role fulfilling the needs of our customers. These individuals are, in many respects, the heart of GameStop. We’ll be sharing details regarding this investment in the coming weeks.

3. Mike Recupero, who has served as our Chief Financial Officer since last June, is departing. Diana Jajeh, who has been our Chief Accounting Officer and possesses strong institutional knowledge of the business, has been appointed Chief Financial Officer.

These changes will enable us to operate in a profitable manner as we execute against our strategy of pursuing sales growth in our commerce business and launching new products that empower customers within the digital asset and web3 gaming verticals. I’m confident in the team we have in place going forward, and thank you again for your continued dedication and focus.

Regards,
Matt

This is breaking news. Please check back for updates.

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GameStop surges more than 20% and is halted in odd trading; AMC shares also pop

May 12, 2022 Admin Leave a comment

A screen displays the logo and trading information for GameStop on the floor of the New York Stock Exchange (NYSE) March 29, 2022.

Brendan McDermid | Reuters

Shares of two meme stocks surged on Thursday, adding an unexpected wrinkle for a stock market that has been dropping in choppy trading for more than a month.

GameStop jumped more than 20% and was halted for volatility multiple times. The stock of theater chain AMC Entertainment popped 18%.

GameStop and AMC turned heads early last year when a band of retail investors coordinated trades on online chatrooms to create massive short squeezes in these stocks widely hated by hedge funds and other players. The meteoric rallies inflicted huge pains for many hedge funds and other short sellers involved in these speculative names.

Since then, the stocks have retreated from their peak prices, and short-sellers have started to build positions once again. According to FactSet, AMC has short interest of 19.5%, while GameStop sits at 21.4%.

Those large bets against the company can sometimes lead to dramatic one-day moves in a stock, as hedge funds move to close out their short positions when a stock rises, thus creating more buying pressure. This process is known as a short squeeze.

Even with Thursday’s big moves, the stocks remain well below their heights from the first half of 2021. GameStop, which rose as high as $483 per share on an intraday basis last January, was trading between $90 and $100 per share on Thursday.

AMC, which hit an intraday of $72.62 last June, was at around $12 per share on Thursday.

Because the market caps of the companies have fallen so much, it is easier for just a few trading shops, or even one large fund, to force a new short squeeze.

In 2021, both AMC and GameStop took advantage of their temporarily elevated share prices to sell additional stock and raise capital. AMC CEO Adam Aron has made a major effort to embrace the retail investors who participated in the rally, answering questions from small-dollar traders on earnings calls and introducing shareholder perks at the physical movie theaters.

AMC has used the cash it raised in part to buy up other theaters around the country. However, the company also bought a stake in a small gold mining company earlier this year that has a shaky financial history.

This is breaking news. Please check back for updates.

— CNBC’s Yun Li contributed to this report

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Charlie Munger says Robinhood is justly ‘unraveling’ for ‘disgusting’ practices

April 30, 2022 Admin Leave a comment

Berkshire Hathaway Vice Chairman Charlie Munger blasted stock trading app Robinhood on Saturday, saying the company is now “unraveling.”

“It’s so easy to overdo a good idea. … Look what happened to Robinhood from its peak to its trough. Wasn’t that pretty obvious that something like that was going to happen?” Munger said at Berkshire Hathaway’s annual shareholder meeting Saturday.

Munger lambasted what he characterized as Robinhood’s “short-term gambling and big commissions and hidden kickbacks and so on.”

Robinhood does not charge users commission and generates a majority of its revenue from “payment for order flow,” the back-end payment brokerages receive for directing clients’ trades to market makers.

“It was disgusting,” Munger said. “Now it’s unraveling. God is getting just.”

Charlie Munger at the Berkshire Hathaway press conference, April 30, 2022.

CNBC

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Own stocks that are cheap on a price to earnings basis

April 8, 2022 Admin Leave a comment

CNBC’s Jim Cramer on Friday previewed next week’s roster of earnings and advised investors to stick to companies that are profitable yet affordable for investors to own.

“In this environment, you need to own companies that make stuff and do things profitably, but let’s add, also, with stocks that remain cheap on a price to earnings basis,” the “Mad Money” host said.

Even as the Fed tries to tamp down higher prices, “we’ve already seen signs that inflation is peaking in many areas. Unfortunately, so is the rest of the economy,” he later added.

Cramer said that on Monday, he’ll be keeping his eye on Russia’s invasion of Ukraine and its effect on commodity prices. He also said he’ll be watching the 30-year Treasury bonds.

“The 30-year, not the 20[-year], is where all the action will be once the Fed starts selling its bond portfolio. You need to know that this sell-off in the 30-year is signifying that much higher rates are on the way,” Cramer said. “Get ready for them. Higher long rates will likely hurt the Nasdaq like we saw today, not the Dow, which can hold up just fine because it’s full of tangible companies that fit my criteria.”

The Dow Jones Industrial Average on Friday rose 0.4%. The S&P 500 dropped 0.27% while the Nasdaq Composite tumbled 1.34%. All three declined for the week.

Also on Cramer’s radar is an expected “red-hot reading” in the March consumer price index releasing next Tuesday.

“It’ll be inexorable and nasty until we see the peak in everything. Whatever the so-called consensus is, it’s almost always too low right now, and so that’s going to gaffe the bondholders and put pressure on the stock market that day,” he said.

Cramer also previewed next week’s slate of earnings and gave his thoughts on each reporting company. All earnings and revenue estimates are courtesy of FactSet.

Tuesday: Albertsons, CarMax

Albertsons

Q4 2021 earnings release before the bell; conference call at 8:30 a.m. ET
Projected EPS: 64 cents
Projected revenue: $16.76 billion

Cramer said he expects great results from Albertsons and is on the lookout for an announcement, whether they’re planning on going private or revealing a big buyback or dividend.

CarMax

Q4 2022 earnings before the bell; conference call at 9 a.m. ET
Projected EPS: $1.27
Projected revenue: $7.5 billion

“Any sign that this endless series of price hikes is over, or that demand has been destroyed … will reinforce my thesis that all the used car companies must be sold,” Cramer said.

Wednesday: JPMorgan Chase, Bed Bath & Beyond, BlackRock, Delta Air Lines

JPMorgan Chase

Q1 2022 earnings release at 6:45 a.m. ET; conference call at 8:30 a.m. ET
Projected EPS: $2.72
Projected revenue: $30.57 billion

“Every time the Fed raises rates, these guys instantly become more profitable on a risk-free basis,” Cramer said.

Bed Bath & Beyond

Q4 2021 earnings release; conference call at 8:15 a.m. ET
Projected EPS: 4 cents
Projected revenue: $2.08 billion

“The question here is simple: Will big new shareholder Ryan Cohen, of Chewy and GameStop fame, join the board, and will the Buy Buy Baby business be sold to private equity? I think it’s all on the table, and the stock goes up substantially,” Cramer said.

BlackRock

Q1 2022 earnings release before the bell; conference call at 8:30 a.m. ET
Projected EPS: $8.95
Projected revenue: $4.73 billion

Cramer said he’s interested in hearing about how “individuals might get to vote their index fund shares.”

Delta Air Lines

Q1 2022 earnings release before the bell; conference call at 10 a.m. ET
Projected loss: loss of $1.30 per share
Projected revenue: $8.74 billion

Cramer said he’s in favor of travel stocks but believes airlines are currently a tough sell “given how much money they can lose in a Fed-mandated recession.”

Thursday: Goldman Sachs

Goldman Sachs

Q1 2022 earnings release at 7:30 a.m. ET; conference call at 9:30 a.m. ET
Projected EPS: $8.95
Projected revenue: $11.98 billion

“I have never seen Goldman Sachs stock this cheap, ever. … I think you’re getting a fairly good chance to catch a bounce here, if not an investment, because by this point, it should be no surprise that Goldman’s first quarter was ugly,” Cramer said.

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GameStop, Apple, BlackBerry and more

April 1, 2022 Admin Leave a comment

Check out the companies making headlines before the bell:

GameStop (GME) – GameStop plans to seek shareholder approval to boost the number of shares outstanding in order to enable a stock split. The videogame retailer is proposing an increase to 1 billion shares from 300 million. The stock surged 16.6% in the premarket.

Apple (AAPL) – J.P. Morgan Securities removed the stock from its “Analyst Focus List,” saying a moderation in consumer spending may limit benefits from the iPhone SE launch and the potential for upside in services revenue. However, the firm retained an “overweight” rating on the stock.

BlackBerry (BB) – BlackBerry earned an unexpected profit for its latest quarter, but the communications software company’s revenue fell below analyst forecasts. The revenue miss came as growth in its cybersecurity unit flattened. Shares slid 4.4% in premarket trading.

Wynn Resorts (WYNN) – The resort and casino operator’s stock added 1.6% in the premarket after Citi upgraded it to “buy” from “neutral.” Citi cites increasing clarity over regulations and licenses in Macau as well as an attractive valuation.

Li Auto (LI) – Li Auto rallied 6.6% in premarket trading after the China-based electric vehicle maker reported 31,716 vehicles deliveries in March, more than double the year-ago total.

Nio (NIO) – The China-based electric vehicle company Nio reported deliveries of 9,985 vehicles in March, an increase of 37.6% from a year ago. Nio shares jumped 5.8% in premarket trading.

Hycroft Mining (HYMC) – The small-cap mining company – best known for an investment from movie theater chain AMC Entertainment (AMC) – added 3% in the premarket after reporting a smaller-than-expected quarterly loss. AMC shares rallied 4.6%.

Poshmark (POSH) – The online clothing marketplace operator’s stock slid 2.2% in premarket trading after Stifel cut its rating to “hold” from “buy.” Stifel said the company faces numerous growth challenges despite healthy profit potential and a highly engaged user base.

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Business

GameStop, Uber, Nielsen Holdings and more

March 29, 2022 Admin Leave a comment

A screen displays the logo and trading information for GameStop on the floor of the New York Stock Exchange (NYSE) March 29, 2022.

Brendan McDermid | Reuters

Check out the companies making headlines in midday trading.

GameStop — Shares of the video game retailer dropped 6% on huge trading volume. More than 8 million shares traded through 10:50 a.m. ET, already doubling its 30-day average full-day volume of 4.6 million. There were some large block trades of GameStop in early trading on the NYSE.

Nielsen Holdings – Shares spiked about 20% following news that a group of private equity investors led by Brookfield Business Partners will acquire the ratings company for $16 billion. The company had previously rejected a $9 billion offer from the same group.

NortonLifeLock — Shares for the cybersecurity company dropped 4.5% in midday trading. On Tuesday, Morgan Stanley downgraded NortonLifeLock’s stock to equal-weight, saying the firm sees “limited catalysts” for the cybersecurity company. A regulatory probe in the United Kingdom into NortonLifeLock’s $8.6 billion deal with Avast and higher inflation costs is weighing on the stock.

FedEx – FedEx shares gained 4.2% on news that CEO Fred Smith will step down on June 1. Smith, who founded the package and delivery company more than 50 years ago, will serve as executive chairman. President and Chief Operating Officer Raj Subramaniam will replace him as CEO.

Uber — Shares rose 6% as the ride-hailing company is close to a deal to include San Francisco taxis to its app, The New York Times reported. The report comes after Uber last week announced an agreement to offer New York City taxi rides on its platform.

Dave & Buster’s — Shares of the arcade company soared 10% despite missing on the top and bottom lines of its quarterly results. Dave & Buster’s said that business “strengthened” in the first eight weeks of the first quarter with same-store sales up 5.4% over the same period in 2019.

Reynolds Consumer Products — Shares of the maker of consumer products fell nearly 3% in midday trading after Goldman Sachs double downgraded the stock to sell from buy. The Wall Street firm said consensus estimates are too high for Reynolds.

Stellantis — Shares of the automaker rose 7% in midday trading despite news that it is laying off an undisclosed number of workers at its Illinois Jeep plant in an effort to “operate the plant in a more sustainable manner.”

Jefferies — Shares of Jefferies popped more than 7% in midday trading after reporting better than expected quarterly profit and revenue. Jefferies earned $1.23 per share, well above the 89 cent consensus estimate, according to Refinitiv.

UnitedHealth Group — Health care giant UnitedHealth Group announced a deal to buy LHC Group for $170 per share. LHC Group rose 1% in midday trading while UnitedHealth Group was about flat.

— with reporting from CNBC’s Samantha Subin, Sarah Min, Hannah Miao, Tanaya Macheel and Yun Li.

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Tag Archives: GameStop Corp

Bed Bath & Beyond jumps 50% to lead ‘nonsense’ rally in meme stocks; AMC gains 15%

Meme stocks rallying one more time

Apple, Amazon, Microsoft and Google will fuel the next rally

Fund manager names 3 recession-proof stocks and reveals how to rescue portfolio

GameStop (GME) Q2 2022 earnings

Changing it up

GameStop CFO is leaving the company, retailer announces layoffs

GameStop surges more than 20% and is halted in odd trading; AMC shares also pop

Charlie Munger says Robinhood is justly ‘unraveling’ for ‘disgusting’ practices

Own stocks that are cheap on a price to earnings basis

GameStop, Apple, BlackBerry and more

GameStop, Uber, Nielsen Holdings and more

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