Today is Tuesday, July 12, 2022.
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GameStop’s NFT Marketplace
Shares of GameStop (NYSE GME) ticked up 0.70% in after-hours trading on Monday after the video game retailer launched its NFT (non-fungible token) marketplace.
Details: The new marketplace allows users to buy, sell, and trade NFTs. It is a non-custodial and Ethereum layer 2-based marketplace, which means users truly own their digital assets because they are secured on the blockchain. Users can also connect digital asset wallets to the marketplace.
Definition: An NFT is a security in the form of digital data on blockchain that represents objects. NFTs for collecting and investing have increased in popularity since last year.
Background: GameStop has been hyping its NFT marketplace for some time and investors have waited for this day to finally arrive. The launch comes on the heels of GameStop announcing a stock split and firing its CFO last week.
Numbers: Shares of GameStop are down nearly 15% this year as the meme stock trade seemingly fades away.
Final Thoughts: GameStop plans to expand the functionality of the marketplace over time to include new categories such as Web3 gaming. Investors should be excited about that.
Notable Earnings Today: PepsiCo (Nasdaq: PEP), AngioDynamics (Nasdaq: ANGO), Mainz Biomed (Nasdaq: MYNZ).
Notable IPOs Today: WARRANTEE INC. (Nasdaq: WRNT), Nano Labs Ltd (Nasdaq: NA).
Notable Equity Crowdfunding Campaigns Ending Today: N/A.
Notable Economic Events Today: OPEC Monthly Report (7:00 a.m. ET), WASDE Report (12:00 p.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).
Gap CEO Suddenly Departs
Shares of Gap (NYSE: GPS) dropped 3.42% in after-hours trading on Monday after the clothing and accessories retailer announced that president and CEO Sonia Syngal will step down.
Details: Bob Martin, the company’s chief executive chairman of the board, will serve as president and CEO on an interim basis. Gap also announced that Horacio “Haio” Barbeito will become president and CEO of Old Navy on August 1.
Quote: “Amidst significant global disruption, social unrest and economic instability, Sonia had an immediate impact as Gap Inc. CEO, establishing a clear strategic direction and cultural identity that has united this global enterprise as a force for good with powerful brands poised to stand the test of time.” - Bob Martin, Gap interim president and CEO.
Outlook: Gap also updated its second-quarter fiscal outlook on Monday. The company reiterated its net sales guidance to be a decline in the high-single-digit range but lowered its adjusted operating margin percentage to be between zero to slightly negative.
Numbers: Gap’s stock is down over 50% in 2022.
Final Thoughts: It’s been a tough few months for clothing retailers. Gap reports earnings on August 25.
Equity Crowdfunding Spotlight: Doroni Aerospace
Briefly describe your business. Doroni is developing a safe, sustainable, and cost-effective Electric Vertical Takeoff and Landing Aircraft, or “eVTOL,” that anyone can own, fly, and park in their garage—all you’ll need is a driver’s license and training course to get started.
What are the terms of the investment for your campaign? Investors are currently privy to 40% Bonus Preferred Shares as part of our Super Early Bird promotion on StartEngine.com/doroni-aerospace with a min. $350 investment at $2.50/share. This is a Reg CF equity offering with a $2M offering max.
What makes your startup special? Why will it succeed? We are democratizing flight and revolutionizing commuter transportation. In the last 6 months, we’ve kicked off development at a state-of-the-art facility, are working with major OEMs like Honeywell and Garmin, and recruited a former Tesla CFO.
Trends to Watch
There’s No Place Like No Home: Homebuyers are canceling deals at the highest rate since the start of the pandemic (NBC News)
Consumer Not-So Confident: Consumers' inflation expectations hit record high (CNN)
Preparing for a Drop: Bitcoin investors fear the cryptocurrency’s crash is going to get a whole lot worse (Fortune)
Asking For a Delayed Takeoff: Frontier Asks Spirit Airlines to Further Delay Shareholder Vote on Deal (The Wall Street Journal)
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