GameStop stock falls sharply amid 5M-share sales plan, SEC investigation

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Ars Technica 10 June, 2021 - 11:38am 34 views

What time is GME earnings?

GME Earnings Date Gamestop Corporation is expected* to report earnings on 06/09/2021 after market close. The report will be for the fiscal Quarter ending Apr 2021. According to Zacks Investment Research, based on 3 analysts' forecasts, the consensus EPS forecast for the quarter is $-0.67. nasdaq.comGameStop Corporation Common Stock (GME) Earnings Report Date

Shares of so-called stonks, or stocks popular with retail investors, are seeing mixed trading activity in the early pre-market session on Thursday.

ContextLogic Inc. (NASDAQ: WISH) has emerged as the most popular stock on WallStreetBets. Its shares are up 3.3% in early pre-market hours on Thursday as retail traders see the e-commerce platform company as the target of a potential short squeeze. The company’s shares closed 8.9% lower on Wednesday at $10.60.

Cleveland-Cliffs Inc. (NYSE: CLF) shares are up about 0.6% in the pre-market hours after closing 14.6% higher on Wednesday at $23.22 on higher iron ore prices and as the steelmaker held a ribbon-cutting ceremony at a direct reduction plant in Toledo, Ohio on Wednesday.

Workhorse Group Inc. (NASDAQ: WKHS) is down 2.7% in the pre-market hours after closing almost 8.5% higher on Wednesday at $16.90. The electric vehicle maker is seeing high interest from retail investors as it has a high percentage of shares outstanding held short.

AMC Entertainment Holdings Inc. (NYSE: AMC) shares are down 6.6% in pre-market activity. The movie theatre chain’s shares closed almost 10.4% lower on Wednesday at $493.34 after GameStop Corp. (NYSE: GME) disclosed that the U.S. Securities and Exchange Commission is investigating trading activity in the company’s securities as well as “the securities of other companies.”

Tilray Inc. (NASDAQ: TLRY) shares are down 1.5% in the pre-market hours. The shares closed almost 6% higher on Wednesday at $21.43 after the marijuana company on Tuesday announced the launch of a new medical brand, Symbios, as well as a new line of topical treatments under its Aphria brand.

GameStop Corp. (NYSE: GME) shares are down 7.8% in the pre-market hours after the company reported better-than-expected earnings for the first quarter but also revealed the SEC probe. The shares closed about 0.9% higher at $302.56 on Wednesday.

Clover Health Investments Corp. (NASDAQ: CLOV)  shares are trading higher by 9.2% in the pre-market hours. The medicare insurance technology company’s shares closed 23.6% lower at $16.92. S3 Partners analyst Ihor Dusaniwsky said Tuesday he estimates Clover’s short percent of float at 43.5%, making it one of the most heavily shorted stocks in the market.

Clean Energy Fuels Corp. (NASDAQ: CLNE) shares are down 1.9% in the pre-market activity. The renewable natural gas company’s shares surged 31.5% higher to close at $13.02 on Wednesday.

Read Next: WallStreetBets Has A New Trading Strategy To Target Stocks Beyond AMC, GameStop, Clover Health, Says Cramer

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GameStop names Matt Furlong CEO, effective June 21

CNBC Television 10 June, 2021 - 01:00pm

Want Some 'Meme Stock' Action? 2 ETFs That Hold AMC

Investing.com 10 June, 2021 - 01:00pm

This has become the year when “meme stocks,” like movie theatre operator, AMC Entertainment (NYSE:AMC), have captured Wall Street’s imagination. So far in 2021, AMC shares are up about 2,600%.

That means the proverbial $1,000 invested in early January would now be worth around $26,000. In recent days, the shares saw an all-time high of $72.62. They are now hovering around $60.

Similarly, two other meme stocks have been making headlines. Year-to-date, omni-channel retailer, GameStop (NYSE:GME) and Canadian technology group, BlackBerry (NYSE:BB) have returned 1,570% and 160%, respectively.

On Tuesday, as we write, another stock, Clover Health Investments (NASDAQ:CLOV), has become the latest meme stock darling. Intraday, it is up more than 65%. Traders on social media groups like Reddit’s Wallstreetbets, have jumped in to participate in the rally. Meanwhile, short-sellers, many of which are institutions, have been getting “squeezed.”

It is hard to argue against returns like this. However, the volatility that comes with the meme-stock craze may not be appropriate for most retail investors.

Therefore, today we introduce two exchange-traded funds (ETFs) that hold AMC. Interested readers could consider doing further due diligence on these funds, which would also give exposure to one or more of the current meme stocks.

The First Trust Mid Cap Growth AlphaDEX® Fund (NASDAQ:FNY) provides exposure to mid-cap growth stocks selected from the NASDAQ US 600 Mid Cap Growth Index. The companies are ranked based on price appreciation, sales-to-price ratios and sales growth. The fund, which started trading in April 2011, is rebalanced quarterly.

FNY tracks the NASDAQ AlphaDEX Mid Cap Growth Index. Top sectors include information technology, (19.40%), health care (19.13%), consumer discretionaries (16.36%), industrials (12.09%) and financials (6.34%).

The fund currently has 225 stocks. The 10 leading holdings comprise 11.6% of FNY’s net assets of almost $414 million.

AMC Entertainment; Sweden-based biotechnology group Olink (NASDAQ:OLK); oil and gas exploration company APA (NASDAQ:APA); Celsius (NASDAQ:CELH), which develops calorie-burning beverages; and medical device group Shockwave Medical (NASDAQ:SWAV) top the list of current holdings.

So far this year, FNY is up about 10.5%, hitting a high of $75.47 in mid-February. Over the past 52 weeks, the fund has returned more than 51%. Small- and mid-capitalization companies, generally, carry higher growth prospects than large-cap firms.

Investors should keep FNY on their radar, as it outperforms via a portfolio of selected mid-cap growth equities.

Our next fund, the SoFi Social 50 ETF (NYSE:SFYF), provides exposure to the top 50 most widely held U.S. listed stocks in more than 100,000 separate self-directed brokerage accounts at SoFi Finance, part of the fintech group SoFi Technologies (NASDAQ:SOFI), which recently went public.

Stocks are rebalanced monthly and weighted according to how much money members have invested in each company at the end of every month.

SFYF has 50 holdings. The passively managed fund tracks the SoFi Social 50 Index and started trading in May 2019. The top 10 holdings make up slightly over 52% of total net assets, which stand at $16.55 million. In other words, it is a small fund.

The most important sectors (by weight) are consumer cyclical (35.8%), communications (22.1%), technology (20.3%), consumer non-cyclicals (13.0%) and industrials (3.8%).

Among the largest holdings are AMC, electric vehicle darlings Tesla (NASDAQ:TSLA) and Nio (NYSE:NIO), technology pioneer Apple (NASDAQ:AAPL) and GameStop.

Year-to-date, the fund is up more than 43% and has returned close to 97% in the past 52 weeks. Potential investors could consider buying the dips in the fund.

Passive-income seekers typically prefer investing in robust stocks that provide stable—and preferably—growing dividends, which can also provide price appreciation in...

Back on May 14, with SPDR® S&P Retail ETF (NYSE:XRT) trading at 89.56, we discussed the following technical (and macro) setup with our MPTrader members:  "My conclusion technically...

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Cramer says he's 'not against' GameStop, AMC at current trading levels

CNBC 10 June, 2021 - 01:00pm

CNBC's Jim Cramer said Wednesday that shares of GameStop and AMC Entertainment are within buying range, but cautioned investors who got in on the stocks lower to protect profits from a big run.

"I'm not against [buying] GameStop or AMC at these levels. GameStop's currently below where I told you to ring the register in January," the "Mad Money" host said.

GameStop stock moved 0.85% higher on Wednesday to $302.56, and AMC ended the session at $49.34, down 10.37% from Tuesday's close.

"If you've ridden them up from much lower levels, take a little off the table," Cramer said. "These stories could always get dinged."

Shares of the beleaguered companies have shot up as part of the Reddit-fueled retail trade. GameStop has skyrocketed more than 1,500% so far in 2021. AMC has rallied more than 2,200% through Wednesday.

GameStop, which reported better-than-expected results for its first quarter after the market close, was down about 7% in extended trading. The company also announced Wednesday it has hired former Amazon e-commerce executive Matt Furlong as its new CEO.

"These companies now have the ability to reinvent themselves because higher stock prices have allowed them to raise capital," Cramer said.

AMC has used the momentum to issue new shares and raise capital, and GameStop said Wednesday it would consider selling 5 million shares.

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Wall Street Breakfast: Meme Madness

Seeking Alpha 10 June, 2021 - 01:00pm

Morning Bell With Jim Cramer: Ride the Ponies Wisely

TheStreet 10 June, 2021 - 01:00pm

Cramer discussed the current Reddit-crowd frenzy with Action Alerts PLUS senior analyst Jeff Marks.

"People are having fun," Cramer said. "Now, I favor education, so when you have too much fun, things can go wrong."

Cramer said he had taken a handicap course at Harvard and he used to go to Suffolk Downs "pretty much every day and I just had to pick the one race I liked."

"Is this different from the ponies?" he asked. "I come back and say, 'hey, what’s the matter with the ponies?' I don’t back and say 'yeah, it’s like the ponies.' You do the ponies right, you make money ... you do this right, you make money. But you maybe have to take a little bit of a course. You have to understand that you may be riding the wrong pony."

Cramer noted that he has "always said that there's a component of fantasy," and referred to Bull Market Fantasy, "where we merge stocks and jocks and I accept it."

"You can say, 'that's outrageous, Jim, you're endorsing it,'" Cramer continued. "But I'm saying the opposite. If you going to do it, do it wisely."

He added that he writes about how to speculate wisely every day in RealMoney and "how to invest wisely is what we do every day at Action Alerts."

"We do not do any of this," he said, "but I want you to invest wisely."

Regarding Wendy's going too far, Cramer said, "well, I would tell you that if you hold it, I think it will go up a lot."

"You need to invest wisely," he said. "To me, GameStop has been great, so you need to take a little off the table. But the people who are riding these ponies like GameStop; they hate to hear that because it might break the short."

"You need everybody buying in order to keep the short going," Cramer said.

GameStop shares fall as 'investors are getting tired of waiting,' analyst says

Yahoo Finance 10 June, 2021 - 12:23pm

Shares of GameStop sank by more than 22% intraday on Thursday, pacing toward their worst day since March even after the company reported first-quarter results that topped estimates. Sales grew by a better-than-expected 25% to $1.28 billion, while adjusted losses narrowed to 45 cents per share, compared to losses of $1.61 per share during the same period last year. 

The release coincided with the company's announcements that it appointed a new chief executive officer and chief financial officer, planned to sell more shares and was being investigated by the U.S. Security and Exchange Commission over trading activity. Earlier Wednesday, GameStop shareholders also voted Ryan Cohen, co-founder of the e-commerce platform Chewy (CHWY), as chairman of the board. 

But amid the flurry of updates, GameStop left a glaring omission — namely, its plan to transform the company into a formidable retail competitor, according to at least one Wall Street analyst. 

"We don't know where GameStop is headed but it's clear that they intend to remake themselves as an Amazon-lite," Wedbush analyst Michael Pachter told Yahoo Finance on Thursday. "And Ryan Cohen promised investors a strategy back in mid-January. It's been nearly five months and we haven't seen that yet."

"I think the pullback in the stock is, investors are getting tired of waiting for him to tell us what the strategy is. I'm getting tired waiting," he added. "And there's no chance I'm taking my target up unless he shows me the path to massive profit growth. I just don't see it."

Pachter has an Underperform recommendation on shares of GameStop with a $50 12-month price target, representing downside of 83% from its closing prices on Wednesday. In a note following earnings results, Pachter said the company "was positioned to be a primary beneficiary of the new console launches," but that recent social media-fueled trading "spiked the share price to levels that are completely disconnected from the fundamentals of the business." 

GameStop said the announcements "reflect the refreshed Board's focus on building a technology company and investing in growth." 

"Possibly the Reddit raiders, the retail investors, wanted to see somebody from Coinbase, or somebody from some cannabis supplier — something transformational," Pachter said. "And we got more of the same."

"As a fundamental research analyst, I am A-OK with hiring people from Amazon, especially from the e-commerce division," he added. "These are good people, they're going to be competent executives."

Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck

Upgrade now to stay ahead of the market with Yahoo Finance Plus.

To Montana Senator Jon Tester, inflation remains a major concern.

Starbucks stores are running low on some supplies as consumers exit quarantine in droves.

Three major retailers are stepping up early to say they will be closed for Thanksgiving this year and it's only summer.

Stocks rose Thursday as traders digested a key print on inflation, which showed consumer prices rose faster than expected as demand surged during the recovery.

Reddit stocks were mostly lower while the frenzy behind the rally in the likes of AMC and GameStop shows signs of extending beyond social-media buzz.

Digging deeper into the the meme stock phenomenon, there are big difference between Palantir, Wendy's, Canoo and other companies.

The videogame retailer disclosed plans to sell stock as it named a new CEO and CFO and reported better financial results than expected.

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