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GameStop Wants to Buy Stocks

GameStop Wants to Buy Stocks

Plus, C3.ai’s momentum loses steam.

December 07, 2023

Bitcoin (BTCUSD) price chart from TradingView as of May 23, 2020.

Photo by Nick Chong on Unsplash

Today is Thursday, December 7, 2023.

The Early Bird Index today is 61.59.

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GameStop Wants to Buy Stocks

GameStop (NYSE: GME) posted mixed financial results on Wednesday, sending shares down by 5.93% in after-hours trading, but the company is closer to becoming profitable.

Financials: GameStop reported a loss of one cent per share in the past quarter, which was better than expected. Revenue reached $1.08 billion, which was lower than expected.

Details: The company lost $3.1 million during the quarter, better than the net loss of $94.7 million in the previous quarter last year.

Powering the Story: GameStop, considered to be the ultimate meme stock, announced Wednesday that the board gave the company permission to invest in other stocks…oh, the irony here. The company has basically transformed into a meme investor.

Stock Price: GameStop is down 13% this year, but up 8% in the last 30 days.

Final Thoughts: GameStop still has problems, but the profitability is finally in sight.

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Notables

Notable Earnings Today: Broadcom (Nasdaq: AVGO), Lululemon Athletica (Nasdaq: LULU), Dollar General (NYSE: DG), Ciena (NYSE: CIEN), Smith & Wesson Brands (Nasdaq: SWBI), RH (NYSE: RH), Cooper (Nasdaq: COOP), Vail Resorts (NYSE: MTN), GMS (NYSE: GMS), Hooker Furnishings (Nasdq: HOFT), HashiCorp (Nasdaq: HCP), Guidewire Software (NYSE: GWRE), Liquidity Services (Nasdaq: LQDT), Secureworks (Nasdaq: SCWX), Smartsheet (NYSE: SMAR), Methode Electronics (NYSE: MEI).

Notable IPOs Today: N/A.

Notable Equity Crowdfunding Campaigns Ending Today: Ghost Boards (StartEngine), Cinelounge (SMBX).

Notable Economic Events Today: Jobless Claims (8:30 a.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

C3.ai’s Momentum Loses Steam

Photo by Markus Winkler on Unsplash

The strong year for C3.ai (NYSE: AI) came crashing down on Wednesday with mixed financial results, sending shares down by 8.09% in after-hours trading.

Financials: C3.ai reported a loss of 13 cents per share, which was better than expected. Revenue was $73.2 million, which was lower than expected.

Outlook: The company says that revenue will be between $74 million to $78 million in the current quarter, which is lower than expected.

Background: C3.ai rode the 2023 AI train to success this year. Before the earnings report on Wednesday, the stock was up 163% in 2023.

Final Thoughts: While C3.ai is touting its transition to a new pricing model, investors are freaked out about the lower outlook.

Chewy Posts Weaker Guidance

Shares of Chewy (NYSE: CHWY) fell by 10.65% in after-hours trading on Wednesday after the pet product retailer posted mixed financial earnings results.

Financials: Chewy reported earnings of 15 cents per share in the past quarter, which was better than expected. But revenue was only $2.74 billion, which was below estimates.

Outlook: The company expects revenue for the full year to go up to $11.1 billion. Investors wanted a higher number, especially with the holiday shopping season in full swing.

Final Thoughts: Chewy is down 45% this year. A weak holiday season outlook is weighing down the stock.