GameStop's Cash Reserves đź’¸

Plus, Dave & Buster's rising profit.

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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.

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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.