GameStop rallies above $200 for the first time in a month as transition steps attract new bulls

gamestop store
  • GameStop rose as much as 19% on Tuesday, climbing above $200 for the first time since February 1.
  • The retailer’s shares have rallied in recent days as its transition to e-commerce business picks up steam.
  • GameStop announced Monday that Chewy founder Ryan Cohen will head a committee tasked with leading the firm’s transformation.
  • Watch GameStop trade live here.

GameStop climbed for a fifth straight day on Tuesday, signaling investors bullish toward the company’s overhaul are sticking to their guns instead of playing the stock for quick profits.

Shares rose as much as 19% and landed above $200 for the first time since February 1. While the level remains well below the $483 peak seen during January’s trading frenzy, shares are still up more than 900% year-to-date and about five times higher than where they stood mid-February.

The upswing follows larger gains made Monday after the company announced board member and Chewy founder Ryan Cohen will head a planning committee meant to usher in GameStop’s transformation. Cohen said in a November letter that the video-game retailer needs to focus on e-commerce business and lean less on physical locations if it’s to survive.

Steps taken since suggest GameStop heeded Cohen’s warning. The company hired Amazon veteran Matt Francis to serve as its new chief technology officer in February. The transition committee is now tasked with hiring leaders for its e-commerce fulfillment and customer care arms, as well as find a new chief financial officer.

The group will also seek opportunities for transforming GameStop into a “technology business” and creating value for shareholders, the retailer said in a press release.

The announcement marks a new phase to the mania around GameStop stock. Shares famously shot higher in January as casual investors uniting online flooded the market with buy orders.

That phenomenon has mostly died out, but participating Reddit traders have replaced their calls of “GME to the moon!” with research into how GameStop can thrive as an e-commerce firm. The crude commentary, memes, and bragging about claimed windfalls remain.

Even Keith Gill, arguably the group’s most famous GameStop bull, has cheered on the latest rally. The investor, known online as RoaringKitty and DeepF***ingValue, posted an update to his position on Monday. The one-day rally allegedly fueled an $8.5 million profit, bringing his total gain to $25.8 million.

Gill gained notoriety online for his early bullishness toward GameStop. Fame gained during the January surge led to his testifying to the House Financial Services Committee on the matter last month.

GameStop closed at $194.50 on Monday. The company has two “buy” ratings, two “hold” ratings, and three “sell” ratings from analysts.

GME
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Airline stocks climb on economic recovery optimism as Senate approves landmark stimulus package

Boeing 737 Max

  • Shares of airline companies rose on Monday amid surging optimism around the ongoing economic recovery following the Senate’s recent approval of the stimulus plan.
  • United Airlines, Southwest, American Airlines, and Delta shares all climbed.
  • Airlines were among those that suffered most when large swaths of the global economy shut down at the start of the pandemic.
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Shares of airline companies rose Monday as the Senate’s recent approval of the Biden administration’s $1.9 trillion simulus bill led to a surge in economic optimism.

Here are the intraday highs for four major airline stocks:

The Senate on Sunday approved an economic aid package, set to be among the largest in American history. It now heads back to the House for final approval.

Many analysts say an increase in personal income for many Americans will stimulate the economy, unleashing pent-up desire to travel, consume, and spend. On top of this is a ramped-up vaccine rollout by the United States. President Biden has announced that there would be enough vaccines to innoculate Americans by the end of May this year.

Airline companies were among the industries that suffered the most when large swaths of the global economy shut down at the start of the pandemic, halting most of domestic and international travel. They are frequently one of the biggest beneficiaries of the so-called reopening trade.

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Etsy rises after Elon Musk tweets about how he ‘kinda loves’ the online marketplace for independent creators

Etsy
  • Etsy rose by around 3.5% on Tuesday after Elon Musk, the world’s wealthiest person, touted the company on Twitter.
  • The Tesla founder said he “kinda loves” Etsy, prompting a sharp rally in pre-market trade.
  • Etsy is an online marketplace where independent creators can sell handmade goods. 
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Etsy shares rose on Tuesday after billionaire Elon Musk tweeted about how he loves the online marketplace.

“I kinda love Etsy,” Musk said in a tweet early Tuesday, adding that he bought a hand-knit woolen ‘Marvin the Martian’ helmet for his dog. 

Although the Tesla founder didn’t comment on Etsy’s financial prospects, its stock surged within minutes of Musk publishing his tweet.

Etsy shares were trading around $213.38 per share, up around 2.2% on the day.

Insider’s Meira Gebel reported the 15-year-old online marketplace competes with brands like Shopify, Big Cartel, and Amazon Handmade, but has grabbed its own niche in the market thanks to a seller pool that is made up of over 80% women. As of 2020, Etsy had more than 3.8 million sellers on its platform, up 51% year-over-year from 2.4 million, according to data from Marketplace Pulse.

According to its latest earnings report, the company generated revenue of about $451 million, up from $428.7 million in the previous quarter.

Read More: This actively-managed SPAC ETF amassed $60 million assets within a month of launching. Its founder breaks down how to pick blank-check firms – and shares 3 to watch in 2021

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