GameStop Grows Despite No CEO

And, AI stock C3.ai keeps losing cash.

Today is Thursday, September 7, 2023.

The Early Bird Index today is 55.83.

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GameStop Grows Despite No CEO

It was game on for GameStop (NYSE: GME) on Wednesday, with the stock jumping 3.57% in after-hours trading after posting good results.

Financials: GameStop reported a loss of 3 cents per share in the past quarter and revenue of $1.16 billion; both were better than expected.

Details: Sales were up in the quarter. The net loss in the quarter was $2.8 million, which is better than the $108.7 million loss in the same period last year.

Background: These are the first financial results since GameStop ousted its CEO in June. The CFO then resigned in July. No replacements have been named yet.

Stock Price: GameStop is up 9% this year, but down 11% in the last 30 days.

Final Thoughts: These results were impressive, but as an investor, it is tough to trust GameStop without knowing when the new CEO will come in.

Notables

Notable Earnings Today: Science Applications (NYSE: SAIC), DocuSign (Nasdaq: DOCU), RH (NYSE: RH), Designer Brands (NYSE: DBI), Planet Labs (NYSE: PL), Smith & Wesson Brands (Nasdaq: SWBI), BRP (Nasdaq: DOOO), ABM Industries (NYSE: ABM), Braze (Nasdaq: BRZE), Korn Ferry (NYSE: KFY), G-III Apparel (Nasdaq: GIII), Smartsheet (NYSE: SMAR), Toro (NYSE: TTC), Semtech (Nasdaq: SMTC), Waterdrop (NYSE: WDH), Zumiez (Nasdaq: ZUMZ), Latronix (Nasdaq: LTRX), Guidewire Software (NYSE: GWRE), Tsakos Energy Navigation (NYSE: TNP).

Notable IPOs Today: Solowin Holdings Ordinary Share (Nasdaq: SWIN), KraneShares Trust (NYSE Arca: KLXY).

Notable Equity Crowdfunding Campaigns Ending Today: Maison Valero (Honeycomb), FH Jerk (Honeycomb), iXperience (StartEngine), Dream City Brewing Company (Mainvest).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Nonfarm Productivity (8:30 a.m. ET), Unit Labor Costs (8:30 a.m. ET), Crude Oil Inventories (11:00 a.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

AI Stock C3.ai Keeps Losing Cash

Despite posting better-than-expected financial results, the artificial intelligence company C3.ai (NYSE: AI) dropped 7.82% in after-hours trading on Wednesday.

Financials: C3.ai reported a loss of 9 cents per share in the past quarter and revenue of $72.4 million; both were better than expected.

Details: Subscription revenue made up 85% of the total revenue. The company also introduced its C3 Generative AI Suite on Wednesday.

Yes, But: C3.ai said that it expects to lose up to $100 million in the fiscal year.

Stock Price: The stock is up 184% this year, but down 14% in the last 30 days.

Final Thoughts: C3.ai is riding the AI wave of success in 2023, but with no profitability this year, investors are correct to be worried.

Blackberry’s Revenue Faces Challenges

Blackberry (NYSE: BB) reported preliminary financial results on Wednesday, causing the stock to drop by 6.32% in after-hours trading. The company only expects revenue in the quarter to be $132 million due to “delays in closing certain large deals.”

Final Thoughts: The stock is up 67% this year, but these preliminary results are troubling.

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Trends to Watch

House of Cards: Real-Estate Doom Loop Threatens America’s Banks (Wall Street Journal)

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