Today is Friday, March 18, 2022.
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GameStop’s NFT Marketplace
Shares of GameStop (NYSE: GME) dropped 8.04% in after-hours trading on Thursday after the video game retailer posted mixed earnings.
Financials: GameStop reported a loss of $1.86 per share, which was below estimates. However, the company’s revenue of $2.25 billion was better than expected.
The Good: PowerUp Rewards Pros, GameStop’s membership program, grew 32%.
The Bad: The company had to spend more on inventory due to supply chain headwinds. Additionally, sales for GameStop were underwhelming, especially considering that these numbers reflect sales during the usually busy holiday shopping season.
Future News: GameStop also announced that it will launch a marketplace for non-fungible tokens (NFTs) by the end of the second quarter. An NFT is basically a unit of data on the blockchain that can be traded and sold. Investors really liked this announcement.
Final Thoughts: GameStop has lost half of its value in the past 6 months. Can the company turn this around?
Notable Earnings Today: Real Brokerage (Nasdaq: REAX), On Holding (NYSE: ONON), Up Fintech Holding (Nasdaq: TIGR).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: My Mamas Vegan (MainVest), Mike & Patty’s - Jamaica Plain (MainVest), PsiloThera (StartEngine), Sparrow (Wefunder).
Notable Economic Events Today: Existing Home Sales (10:00 a.m. ET).
FedEx Suffers Omicron Setback
Shares of FedEx (NYSE: FDX) dropped 3.81% in after-hours trading on Thursday after the transportation giant posted mixed earnings.
Financials: FedEx reported earnings of $4.59 per share, which was below estimates. However, the company's revenue of $23.6 billion was better than expected.
The Good: Revenue per shipment soared in the quarter, resulting in a 32% increase in operating income.
The Bad: The Omicron variant caused disruptions and hurt customer demand in January and February. FedEx also had to deal with higher transportation costs and wages.
Numbers: Shares of FedEx are down 9% in the past six months. During that same time, UPS (NYSE: UPS) went up 17%.
Final Thoughts: Despite the bad quarter, FedEx is still a critical company in the growing e-commerce space.
2022 Might Be a Bad Time to IPO
After many companies had their initial public offerings in 2021, 2022 might be a less active year.
Downward Trend: Several big companies that had an IPO last year have seen their stock prices plummet. Take a look at Rivian Automotive (Nasdaq: RIVN), which is down 67% since its IPO.
Economic Trends: These poor performances tied with macroeconomic trends such as inflation have resulted in companies thinking twice about going public.
We Won’t Transfer: Last month, file-sharing company WeTransfer canceled its IPO because of the volatile stock market.
Final Thoughts: Until the market improves, investors may want to avoid jumping on the IPO bandwagon.
Trends to Watch
Intoxicating: American Airlines will resume alcohol sales on flights starting April 18 (CNBC)
Taking a Shot: Moderna seeks FDA authorization for second Covid-19 booster shot for all adults (CNN)
Reduction: GE Cuts Larry Culp’s 2022 Pay After Shareholder Protest (The Wall Street Journal)
Ape-reciate This: What Is the Bored Ape Ethereum Token and Who Gets It? (Decrypt)
Warning: Be ready to lose all your money in crypto, EU regulators warn (Reuters)
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