Today is Wednesday, March 22, 2023.
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GameStop's Surprise Profit
Gamestop (NYSE: GME) rocketed by 48.44% in after-hours trading on Tuesday after posting a surprise profit.
Financials: GameStop reported earnings of 16 cents per share in the past quarter and revenue of $2.23 billion; both were better than expected.
Improvement: The company’s net income reached $48.2 million in the quarter. During the same period last year, GameStop posted a net loss of $147.5 million.
Final Thoughts: GameStop is positive for 2023 after a really bad 2022. Suddenly, this may not be just a meme stock anymore.
Notable Earnings Today: Ollie's Bargain Outlet Holdings (Nasdaq: OLLI), Petco Health and Wellness (Nasdaq: WOOF), Chewy (NYSE: CHWY), KB Home (NYSE: KBH), Spectrum Pharmaceuticals (Nasdaq: SPPI), Aeva Technologies (NYSE: AEVA), Winnebago (NYSE: WGO), Phreesia (NYSE: PHR), Wave Life Sciences (Nasdaq: WVE), Aspira Women’s Health (Nasdaq: AWH), Baozun (Nasdaq: BZUN), Sera Prognostics (Nasdaq: SERA), iMedia Brands (Nasdaq: IMBI), Steelcase (NYSE: SCS), Shoe Carnival (Nasdaq: SCVL), Worthington Industries (WOR), Hepsiburada (Nasdaq: HEPS), Nextnav (Nasdaq: NN), MillerKnoll (Nasdaq: MLKN).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: Mighty Heights (StartEngine), Camp365 (StartEngine).
Notable Economic Events Today: Crude Oil Inventories (10:30 a.m. ET), Fed Interest Rate Decision (2:00 p.m. ET).
Nike Still Has Inventory Issues
Shares of Nike (NYSE: NKE) dropped by 2.27% in after-hours trading on Tuesday after the company disclosed its financial results.
Financials: Nike reported earnings of 79 cents per share in the past quarter and revenue of $12.39; both were better than expected.
Final Thoughts: Despite making progress on its large inventory, higher markdowns to liquidate inventory caused the gross margin to decrease.
Top Generative AI Stocks to Watch in 2023
Thanks in part to the generative artificial intelligence craze started by OpenAI’s ChatGPT, here are some stocks that could benefit from this technology.
Softly Winning: Microsoft (Nasdaq: MSFT) has made some big bets with generative AI. It has invested in OpenAI and released its own generative AI-powered Bing. The stock is up by 16% this year.
FAANG: Of all the major big tech stocks, Google (Nasdaq: GOOGL) is trying to position itself as the generative AI winner. The company is investing in generative AI startups and is rolling out its own tool called Bard. The stock is up by 14% this year.
Sold: Salesforce (NYSE: CRM) made a play for the business market with Einstein GPT, its own generative AI tool, which launched earlier this month. The stock is up 37% this year.
Final Thoughts: Most of these stocks are up this year due to the big ChatGPT/generative AI momentum. There’s a chance that these stocks have already experienced their growth for the year, but bullish investors believe that there’s still room for these stocks to grow.
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Trends to Watch
Once in a Decade: Home Prices Fell in February for First Time in 11 Years (The Wall Street Journal)
Still Growing: Bitcoin Holds Firm Above $28K, Equities Rise Amid Banking Sector Rebound (CoinDesk)
What to Expect: Federal Reserve Meeting: Rate Hike Likely, But U-Turn Is Near; S&P 500 Gains (Investor’s Business Daily)
AI Hardware Push: As Nvidia pushes to democratize AI, here’s everything it announced at GTC 2023 (VentureBeat)
Optimism: Ark’s Cathie Wood Sees Silver Lining in $2 Billion Loss (Bloomberg)
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