Today is Thursday, July 7, 2022.
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GameStop’s 4-for-1 Stock Split
Shares of GameStop (NYSE: GME) jumped 8.91% in after-hours trading on Wednesday after the video game retailer’s Board of Directors approved a 4-to-1 stock split.
Details: The stock split will be in the form of a dividend. Shareholders of record at the close of business on July 18 get three additional shares for every one share of GameStop that they own. The dividend goes out at the end of July 21. Trading on the stock split-adjusted basis starts July 22.
Background: Technically, this stock split isn’t new. The company announced the stock split a long time ago. Wednesday was just the board approval.
Numbers: GameStop, the prototype of the meme stock rally, is down 23% this year.
Final Thoughts: Fundamentally, this announcement doesn’t change anything about the company. All eyes will be on GameStop for the release of its marketplace for non-fungible tokens (NFTs) in the future.
Notable Earnings Today: Levi Strauss & Co. (NYSE: LEVI), Byrna Technologies (Nasdaq: BYRN), Helen of Troy (Nasdaq: HELE), WD-40 (Nasdaq: WDFC), Northern Technologies International (Nasdaq: NTIC), Kura Sushi (Nasdaq: KRUS), Kewpie (OTCMKTS: KWPCY).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: Innovative Recordings (SMBX), Whooshh Innovations (StartEngine), Scaeva Technologies (StartEngine).
Notable Economic Events Today: ADP Nonfarm Employment Change (8:15 a.m. ET), Jobless Claims (8:30 a.m. ET), Foreign Trade Balance (8:30 a.m. ET), Crude Oil Inventories (11:00 a.m. ET).
Virgin Galactic Forms “Motherships” Deal With Boeing
Shares of Virgin Galactic (NYSE: SPCE) jumped 4.81% in after-hours trading on Wednesday after the spaceflight company announced that a subsidiary of Boeing (NYSE: BA) will build the company’s motherships.
Details: The deal is between Virgin Galactic and Aurora Flight Sciences, which is owned by Boeing. Virgin Galactic and Aurora have been working together for the past few months on designs. The first new mothership, which is the air launch carrier aircraft, is expected to be in service in 2025.
Quote: “Supported by the scale and strength of Boeing, Aurora is the ideal manufacturing partner for us as we build our fleet to support 400 flights per year at Spaceport America.” - Virgin Galactic CEO Michael Colglazier.
Background: Virgin Galactic, which is still not profitable, is aiming to launch its commercial missions by the first quarter of 2023.
Numbers: Virgin Galactic’s stock is down 52% this year. Boeing is down 34% in that time.
Final Thoughts: Working with a third party on manufacturing is a good strategy for Virgin Galactic. Hopefully, the company can become profitable someday.
Equity Crowdfunding Spotlight: Community Co-Pack NW
Briefly describe your business. Community Co-Pack NW is a low-barrier contract manufacturer that incubates and scales BIPOC- and women-led businesses. We are activating a community-oriented production facility that flips the narrative on the co-packing experience.
What are the terms of the investment for your campaign? We are raising capital with SMBX, small business bonds. Investment starts as low as $10 and when the raise closes, investors will receive a monthly investment paid back at 7.5% over a five-year period.
What makes your startup special? Why will it succeed? We are offering a unique solution to a chronic problem in the natural products industry. There is a huge need for co-manufacturing services and very few will work with small emerging brands. Our team has over 20 years of experience running food businesses.
Trends to Watch
Next Logical Step: Apple Plans Extreme Sports Watch With Larger Screen, Metal Case (Bloomberg)
Negative Impact: AbbVie lowers Q2 and FY 2022 guidance on acquired R&D assets, milestones expense (Seeking Alpha)
Goodbye, Fees: Binance Extends Zero-Fee Bitcoin Trading Globally (CoinDesk)
Still Too Hot: Inflation Fears Drove Larger Fed Rate Increase in June (The Wall Street Journal)
Investors Like This Deal A Latte: Steeped Coffee Hits Reg CF Funding Cap of $5 Million in Under Two Days, Opens Wait List for Investors (Crowdfund Insider)
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