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GameStop’s Surprise Profit 🎉
And, GM exits robotaxi business 🚗🤖.
Today is Wednesday, December 11, 2024.
The Early Bird Index today is 83.41
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GameStop’s Surprise Profit 🎉
Despite declining sales in its financial results, GameStop (NYSE: GME) rose 3.04% in after-hours trading on Tuesday.
Financials: GameStop reported $860 million in revenue in the past quarter, which was lower than expected and a decline from the previous year. However, the company reported earnings of four cents per share, which was better than expected and better than last year.
Early Bird’s Nest Egg Gains: GameStop has returned to profitability through cost-cutting measures, improved operational efficiency, and strategic financial decisions.
The company reduced its selling, general, and administrative (SG&A) expenses by $14.5 million compared to the previous year.
GameStop has been transitioning its business model to adapt to changes in the gaming industry, such as the shift from physical game sales to digital downloads and streaming.
Final Thoughts: GameStop has also been piling up more cash in reserves. The stock is up 61% this year.
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Notables
Notable Earnings Today: Adobe (Nasdaq: ADBE), Macy’s (NYSE: M), Nordson (Nasdaq: NDSN), Oxford Industries (NYSE: OXM), Cognyte Software (Nasdaq: CGNT), REV Group (NYSE: REVG), Photronics (Nasdaq: PLAB), Vera Bradley (Nasdaq: VRA), Kanzhun (Nasdaq: BZ).
Notable IPOs Today: Atlantic International Corp. Common Stock (Nasdaq: ATLN).
Notable Equity Crowdfunding Campaigns Ending Today: Bottled (StartEngine).
Notable Economic Events Today: Consumer Price Index / Core CPI (8:30 a.m. ET), Crude Oil Inventories (10:30 a.m. ET), Federal Budget Balance (2:00 p.m. ET).
GM Exits Robotaxi Business 🚗🤖
The days of General Motors (NYSE: GM) funding a robotaxi business are over. GM announced it is leaving that business, sending shares up 2.20% in after-hours trading on Tuesday.
Details: GM said it will no longer fund the robotaxi development work for Cruise, its self-driving car subsidiary. It will fold the unit into its internal team and focus on other self-driving projects.
Quote: “Cruise has been an early innovator in autonomy, and the deeper integration of our teams, paired with GM’s strong brands, scale, and manufacturing strength, will help advance our vision for the future of transportation.” - CEO Mary Barra.
Powering the Story: Despite pouring billions of dollars into Cruise, it kept losing GM money.
Stock Price: GM is up 46% this year, although the stock is down 8% in the last 30 days.
Final Thoughts: We’ll see how this impacts GM’s finances when the company reports earnings sometime in late January.
XRP Jumps on Ripple’s Approval
The price of the cryptocurrency XRP jumped about 6% on Tuesday after Ripple, which is linked to XRP, announced that its stablecoin received regulatory approval from the New York Department of Financial Services.
Final Thoughts: XRP is having a monster year. It is up 200%.
Trends to Watch
Busted: Dave & Buster's Stock Drops On Disappointing Q3 Earnings, CEO Transition (Benzinga)
Chips Ahoy: Google stock pops as company unveils new quantum computing chip (Yahoo! Finance)
Linked: Chainlink integrates with Coinbase tokenized assets platform (Cointelegraph)
Good Question: Traders are pretty sure of a Fed rate cut. What happens if inflation data is too hot? (MarketWatch)
Checking Out With Sycamore: Walgreens Is in Talks to Sell Itself to Private-Equity Firm Sycamore Partners (Wall Street Journal)
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