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GameStop's Cash Reserves đź’¸
Plus, Dave & Buster's rising profit.
Today is Wednesday, September 11, 2024.
The Early Bird Index today is 69.07.
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GameStop's Cash Reserves đź’¸
Surprise profit? Check. Surging cash reserves? Check. Sales growth? A miss, which is why GameStop (NYSE: GME) fell 10.41% in after-hours trading on Tuesday after reporting financial earnings results.
Financials: GameStop reported earnings of 1 cent per share in the past quarter, which was better than expected. But revenue only reached $798 million, which was lower than expected.
Details: Sales fell 34% year-over-year in the quarter. The good news is that the current cash on hand jumped from $894 million last year to $4.19 billion this year.
Early Bird’s Nest Egg Gains: While GameStop's increased cash reserves provide some financial stability, they don't directly address the underlying challenges facing the company's core business model or guarantee sales growth.
Cash reserves don't directly attract more customers or drive foot traffic to stores.
Having money available doesn't guarantee successful product launches or marketing campaigns.
Cash stockpiles don't inherently improve GameStop's competitive position against major e-commerce players.
Final Thoughts: These mixed financial results dampened GameStop’s strong 2024 performance, with the stock previously up 40% this year.
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Notables
Notable Earnings Today: Oxford Industries (NYSE: OXM), Designer Brands (NYSE: DBI), Vera Bradley (Nasdaq: VRA), D-Market Electronic Services (Nasdaq: HEPS), Lesaka Technologies (Nasdaq: LSAK), Manchester United (NYSE: MANU), Tsakos Energy Navigation (NYSE: TEN).
Notable IPOs Today: GigCapital7 Corp. Class A Ordinary Share (Nasdaq: GIG).
Notable Equity Crowdfunding Campaigns Ending Today: Tantisimo (Honeycomb).
Notable Economic Events Today: Consumer Price Index / Core CPI (8:30 a.m. ET), Crude Oil Inventories (10:30 a.m. ET).
Dave & Buster's Rising Profit
Despite posting mixed financial earnings results on Tuesday, Dave & Buster's Entertainment (Nasdaq: PLAY) jumped 12.59% in after-hours trading.
Financials: Dave & Buster's reported earnings of $1.12 per share in the past quarter, which was better than expected. But sales only totaled $557.1 million, which was lower than expected.
Powering the Story: While comparable store sales fell 6.3%, the company’s profit jumped 8.1%.
Final Thoughts: Dave & Buster's needed this boost. The stock was down nearly 45% in 2024.
Toncoin’s New Partnership
The price of Toncoin, which was originally developed for Telegram, climbed about 5% on Tuesday after cryptocurrency platform Alchemy Pay formed a partnership with Telegram.
Final Thoughts: Despite Tuesday’s jump, the price of Toncoin is down 11% in the last 30 days because of the recent arrest of Telegram’s CEO.
Trends to Watch
Nothing to Fear: Bitcoin ETFs Are Fine Despite Suffering Their Worst String of Outflows, Says Expert (CoinDesk)
A Messy Departure: Goldman’s Credit-Card Exit Hampered by Lax Lending Standards (Wall Street Journal)
Big Week: Two key inflation reports this week will help decide the size of the Fed’s interest rate cut (CNBC)
Incomes Climbing: US incomes rose last year but poverty rates changed little, Census data shows (Reuters)
Stepping Down: Southwest Airlines shakes up its board under pressure from a big shareholder (ABC News)
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