GameStop's Crypto And NFT Plans

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GameStop's Crypto And NFT Plans

Shares of GameStop (NYSE: GME) jumped 22.68% in after-hours trading due to a report that said the company is building a hub for nonfungible tokens (NFTs) and will establish partnerships with cryptocurrency organizations.

Details: GameStop has hired over 20 people for its new business where users can buy, sell, and trade NFTs, as well as video game goods, according to The Wall Street Journal.

Definition: An NFT is a unique digital asset owned by a user and stored on a blockchain. In the past year, NFTs have become a more popular digital asset for traders.

Big Picture: GameStop’s plan into NFTs and crypto is part of the company’s strategy to turn around its business, which has been struggling.

Meme Fame: After last year’s short squeeze, GameStop emerged as one of the top meme stocks. Shares are up 624% in the past year.

Final Thoughts: Thursday’s announcement seems to have a ripple effect that also helped the other meme stocks. For example, shares of AMC Entertainment (NYSE: AMC) went up 7% in after-hours trading.


Notable Earnings Today: Acuity Brands (NYSE: AYI), Greenbrier Companies (NYSE: GBX).

Notable IPOs Today: C5 Acquisition Corporation (NYSE: CXAC), Nabors Energy Transition Corp. (NYSE: NETC), Hour Loop, Inc. Common Stock (Nasdaq: HOUR), Amylyx Pharmaceuticals, Inc. Common Stock (Nasdaq: AMLX), CinCor Pharma, Inc. Common Stock (Nasdaq: CINC), Viscogliosi Brothers Acquisition Corp Unit (Nasdaq: VBOCU), Wahed Dow Jones Islamic World ETF (Nasdaq: UMMA), Jupiter Wellness Acquisition Corp. Class A Common Stock (Nasdaq: JWAC), LF Capital Acquisition Corp. II Class A Common Stock (Nasdaq: LFAC), Vigil Neuroscience, Inc. Common Stock (Nasdaq: VIGL).

Notable Equity Crowdfunding Campaigns Ending Today: Golden Coast Mead (StartEngine), Loaded Dice Brewery (MainVest), I & I Rose Garden (MainVest), Lowkey Dispensary (MainVest), Clara B’s Kitchen Table (MainVest), The Pretzel Haus (Honeycomb), Live Music Tutor (StartEngine).

Notable Economic Events Today: Unemployment Rate (8:30 a.m. ET), Nonfarm Payrolls (8:30 a.m. ET), Hourly Earnings (8:30 a.m. ET), Consumer Credit (3:00 p.m. ET).

SoFi Reaches New Low

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Shares of the fintech company SoFi Technologies (Nasdaq: SOFI) reached their lowest price on Thursday since going public last year.

The Problem: SoFi is facing a double whammy. As it awaits approval to get a national bank charter via a pending acquisition of Golden Pacific Bancorp, the company is also facing disruptions in its student loan business.

Numbers: Shares of SoFi are down 18.65% in the past six months.

Half Glass Full: SoFi’s core financial business segments are still strong. The number of members and accounts are both up in the past year.

Final Thoughts: If SoFi gets its bank acquisition approved, it will increase its lending potential.

Sectors to Watch in 2022

Which sectors could perform well in 2022? Let’s examine some choices.

Bank on It: An environment where the Federal Reserve raises interest rates is a positive one for banks. More lending and credit opportunities could also prove advantageous for the sector. However, a decline in the gross domestic product (GDP) could hurt banks.

Keeping It Real Estate: If inflation normalizes in 2022, then the real estate sector could be a top performer. In particular, real estate investment trusts (REITs) could outperform the market.

Pharma’s Market: Depending on the state of the pandemic, pharmaceutical companies could continue to capitalize in 2022. Keep an eye on stocks that are awaiting FDA approval for certain drugs.

Final Thoughts: Most experts also expect large-cap growth tech stocks to slip in 2022. However, investors shouldn’t time the market around this expectation.

Trends to Watch

Think Outside the Subscription: Taco Bell is selling a $10 monthly taco subscription (CNN)

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