Today is Thursday, September 8, 2022.
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GameStop's New Crypto Partner
Shares of GameStop (NYSE: GME) jumped 11.65% in after-hours trading on Wednesday after the video game retailer posted mixed financial earnings results.
Financials: GameStop reported a loss of 35 cents per share, which was better than expected. Revenue of $1.14 billion was below estimates.
Going Crypto: GameStop, which recently launched a digital wallet and marketplace for NFTs (non-fungible tokens), also announced Wednesday a new partnership with the popular cryptocurrency exchange FTX. GameStop will carry FTX gift cards and introduce customers to the FTX community. It will also be FTX’s preferred U.S. retail partner.
Strong Results: Sales in GameStop’s collectibles category is up year-over-year. General expenses declined 14.3% from the first quarter due to “right-sizing costs.” Inventory was also lower due to good planning.
Decline: Net sales represented a slight drop from the same period last year.
Stock Price: GameStop’s stock is down 37% in 2022.
Final Thoughts: GameStop is still considered to be the king of meme stocks. The FTX news doesn’t amount to anything important, but it excited the investors.
Notable Earnings Today: FuelCell Energy (Nasdaq: FCEL), DocuSign (Nasdaq: DOCU), Bilibili (Nasdaq: BILI), Zscaler (Nasdaq: ZS), Mastercraft Boat Holdings (Nasdaq: MCFT), RH (NYSE: RH), Bioceres Crop Solutions (Nasdaq: BIOX), Smith & Wesson Brands (Nasdaq: SWBI), Lovesac (Nasdaq: LOVE), Zumiez (Nasdaq: ZUMZ), Fusion Fuel Green (Nasdaq: HTOO), Mission Produce (Nasdaq: AVO), Sprinklr (NYSE: CXM), Cantaloupe (Nasdaq: CTLP), eGain (Nasdaq: EGAN), Concrete Pumping Holdings (Nasdaq: BBCP), National Beverage (Nasdaq: FIZZ).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: Orthosnap (Republic).
Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Crude Oil Inventories (11:00 a.m. ET).
American Eagle Outfitters Pauses Dividend
Shares of American Eagle Outfitters (NYSE: AEO) dropped 15.19% in after-hours trading on Wednesday after the clothing retailer posted mixed financial results.
Financials: American Eagle Outfitters reported earnings per share of 4 cents, which was below estimates. Revenue of $1.2 billion was expected.
Taking a Break: Due to a tough macro environment, the company is now pausing its cash dividend in order to improve its cash supply.
Final Thoughts: It’s a tough time for retail as demand drops. The American Eagle Outfitters stock is down 54% this year.
Equity Crowdfunding Spotlight: HOLOFIT by Holodia
Briefly describe your business. Holodia’s HOLOFIT is the only VR fitness app that uses real-time graphics to transport users to original virtual worlds where they can run, row, cycle, ski, box, and more in a fun way. It has $80k in MRR and 96% 3-month retention rates on the Meta store.
What are the terms of the investment for your campaign? Holodia is raising up to $500k on WeFunder with $15m valuation cap and investment perks from $1,000 to augment operations for the next 12 months, scale a new sales channel, go beyond $1mil in ARR, and to reach profitability.
What makes your startup special? Holodia has proven its subscription model and product market fit, has an experienced team of serial entrepreneurs and seasoned investors onboard, as well as a product, distribution partnership and a patent portfolio moat.
Trends to Watch
Have Google, Won’t Travel: Google Restricts Employee Travel to ‘Business Critical’ Trips (The Information)
New Direction: Snap CEO Evan Spiegel lays out plan to grow users, revenue after layoff (The Verge)
Home Not So Sweet Home: Homeowners lose wealth as rising interest rates weigh on home values (CNBC)
He’s Been Right Before: Burry Re-Ups on Gloomy Prediction: ‘We Have Not Hit Bottom Yet' (Bloomberg)
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