GameStop's $400M Cash Haul

And, Trump threatens John Deere.

September 24, 2024

Today is Tuesday, September 24, 2024.

The Early Bird Index today is 73.76.

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GameStop's $400M Cash Haul

GameStop (NYSE: GME) ticked up 1.30% in after-hours trading on Monday after adding $400 million to its bulky cash position.

Details: GameStop got the new funds by completing its “at-the-market” equity offering program, selling up to 20,000,000 shares of its common stock.

  • The additional funds could be for general corporate purposes, including acquisitions and investments.

Background: GameStop saved $4.204 billion in cash by the end of the most recent quarter. The company only had about $1.2 billion on hand a year ago. 

Stock Price: Investors have rewarded GameStop for its savings capabilities. The stock is up 33.83% this year.

Early Bird’s Nest Egg Gains: By building up a large cash reserve, GameStop is creating a financial cushion to help it weather these challenging times and avoid potential bankruptcy.

  • With interest rates at relatively high levels, GameStop's cash hoard is generating significant income. The company earned $15 million in interest in a recent quarter, which helped offset its operating losses.

  • The cash could potentially be used for acquisitions or investments, modernizing operations, or funding research for new products.

Final Thoughts: Strangely, GameStop is operating more like a bank than a retail store.

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Notables

Notable Earnings Today: AutoZone (NYSE: AZO), KB Home (NYSE: KBH), Thor Industries (NYSE: THO), Progress Software (Nasdaq: PRGS), Stitch Fix (Nasdaq: SFIX), Worthington Enterprises (NYSE: WOR).

Notable IPOs Today: THOR Financial Technologies Trust (NYSE: THIR).

Notable Equity Crowdfunding Campaigns Ending Today:  Breadbelly (SMBX).

Notable Economic Events Today: S&P Case-Shiller HPI Composite (9:00 a.m. ET), CB Consumer Confidence (10:00 a.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).

Trump Threatens John Deere

Agricultural machinery company John Deere (NYSE: DE) slipped by 1.53% in after-hours trading on Monday after receiving a warning from former President Donald Trump, the Republican candidate in 2024, on the campaign trail.

Details: Trump said Deere would face a 200% tariff on goods sold in the United States if the company moves some of its manufacturing to Mexico.

Background: Deere, which previously revealed its plans months ago to move some factories to Mexico, is up 2% this year.

Final Thoughts: Deere is also up 7% in the last 30 days.

Ethereum Continues September Push

The price of Ethereum jumped about 4% on Monday, continuing its price surge amid a positive market sentiment for cryptocurrency.

Details: Cryptos are in better shape thanks to the U.S. Federal Reserve cutting interest rates. Investors are also anticipating an upcoming upgrade for Ethereum.

Final Thoughts: Ethereum is up 17.5% over the last 7 days, compared to Bitcoin's 9.8% gain.

Solana’s Potential Weakness: Solana TVL declines, but will SOL price react negatively? (Cointelegraph)

Boeing’s Latest Headache: Boeing raises its offer to the Machinists to try to end the strike (The Seattle Times)

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The contents of Early Bird are intended for informational and entertainment purposes only. They do not constitute trade or investment recommendations and they are not financial or legal advice. Readers are encouraged to consult licensed professionals for personalized guidance regarding their financial or legal situations.