Market Recap: June 7, 2023 - GameStop Fires CEO, Tesla Full EV Tax Credit, and Big Amazon News

PGA Tour's Merger with Liv Golf Mired in Confusion ⛳️🏌️‍♂️

The proposed merger of the PGA Tour and Saudi-backed LIV Golf has sparked concerns about the future of golf sponsorships and endorsements. Amid ongoing controversies and antitrust issues, industry insiders are closely monitoring the deal's structure and potential regulatory implications. Despite initial skepticism from sponsors, the merger might eventually enhance endorsements by consolidating the leagues and re-engaging players who lost sponsorships.

Binance CEO's Trading Firm Receives Regulatory Notice 💼🏛️

The U.S. Securities and Exchange Commission (SEC) has accused Binance, a leading cryptocurrency exchange, and its CEO Changpeng Zhao, of operating a "web of deception," as per SEC filings. Allegedly, Merit Peak, a firm controlled by Zhao, received around $11 billion of client assets via a Seychelles-based firm. These funds, the SEC asserts, were improperly commingled with corporate finances. Binance, in response, pledged to robustly defend its platform and reassured that all user assets on Binance platforms remain safe and secure.

US Encounters Cardboard Box Recession 📦📉

An unexpected economic indicator has emerged with the US experiencing a "cardboard box recession." This trend, suggesting reduced manufacturing and shipping activity, could have implications for the broader manufacturing and retail sectors.

Stock Market Closes Mixed Amid Economic Warnings 📈📉

The stock market ended on a mixed note, with performance varying across sectors. New economic warnings regarding potential headwinds, such as rising inflation and geopolitical uncertainties, have introduced a sense of caution in the market. Now, let's examine how everything ultimately closed…

The S&P 500 (SPX) was down -0.38% coming to a conclusion at 4,267

The Nasdaq Composite (IXIC) fell by -1.29% to end the day at 13,104

The Dow Jones Industrial Average (DJI) rose by +0.27% to settle at 33,665

The Russell 2000 (RUT) gained +1.78% ending at 1,888

The Nasdaq-100 (NDX) dropped by -1.75% to conclude at 14,303

Wilson Aerospace Sues Boeing Over Intellectual Property for NASA Projects 🔍🌌

Colorado-based Wilson Aerospace is suing Boeing (BA) over allegations of widespread intellectual property theft over the last two decades. The family-run company claims that Boeing illicitly replicated their custom-designed tools used for significant NASA projects, resulting in safety risks and significant financial loss. Boeing has countered the allegations, dismissing them as "rife with inaccuracies and omissions," and pledged to vigorously defend itself in court.

BA:

212.02 ▲ +4.73 (+2.28%) Today

211.61 ▼ -0.32 (-0.15%) After Hours

Yext Experiences Record Performance 📈💪

Yext's (YEXT) stock price experienced an unprecedented rally, marking its best performance to date. This surge reflects positively on the company's recent earnings report. Yext saw a 39.27% increase after surpassing expectations and raising its full-year guidance. The software company is also setting the stage for its advancements in AI.

YEXT:

13.37 ▲ +3.77 (+39.27%) Today

13.24▼ -0.05 (-0.38%) After Hours

AMD Stock Witnesses Significant Movements 📉🔀

Despite the recent favorable mood following the Bank of America 2023 Global Technology Conference, Advanced Micro Devices, Inc. (AMD) has seen its shares fall due to profit-taking. However, during the event, AMD demonstrated its growing cloud footprint and hinted at future prospects in the corporate sector during the event. The business also revealed intentions to present its AI strategy next week, a project that has been in the works for years. Furthermore, Piper Sandler and Citigroup analysts boosted their price estimates for AMD, bringing the session volume beyond 41.3 million.

AMD:

117.83 ▼ -6.40 (-5.15%) Today

117.70 ▼ -0.13 (-0.11%) After Hours

Volvo Launches Affordable EX30 Electric SUV ⚡🚗

Volvo (VLVLY) is gearing up to shake the electric vehicle (EV) industry with the debut of its highly-anticipated EX30 electric SUV. This new model is expected to be a highly affordable EV vehicle, positioning the company to make a significant impact in the market. Additionally, Volvo had plans to release the flagship EX90 SUV, which is considered the “big brother” of the EX30. However, the launch of the EX90 has been postponed until 2024.

VLVLY:

19.43 ▲ +0.18 (+0.94%) Today

19.42▼ -0.01 (-0.051%) After Hours

Tesla's Model 3 Sedans Qualify for Full EV Tax Credit 💰🔌

Tesla (TSLA) has announced that all of its Model 3 sedans now qualify for the full EV tax credit of $7,500, providing a boost for the company and potential EV adopters. The tax credit could incentivize more consumers to purchase Tesla's Model 3, potentially driving sales and positively impacting Tesla's financial performance. The development is also likely to strengthen Tesla's position in the electric vehicle market.

TSLA:

224.57 ▲ +3.26 (+1.47%) Today

223.70 ▼ -0.87 (-0.39%) After Hours

Affirm Stock Soars Following Amazon Pay Deal 💰🤝

Following the announcement of a major partnership with Amazon Pay, shares in Affirm (AFRM) witnessed a surge. This collaboration allows vendors utilizing Amazon Pay to offer Affirm's "Adaptive Checkout," enabling customers to make flexible payments over time. The partnership marks a significant strategic shift for Affirm, as it gains access to a vast user base and diverse business opportunities. Furthermore, this alliance has the potential to greatly enhance Amazon Pay's offering, providing customers with increased payment flexibility.

AFRM:

16.20 ▲ +0.38 (+2.40%) Today

16.25 ▲ +0.055 (+0.34%) After Hours

Amazon Plans Ad-Supported Streaming Tier 📺💰

Amazon (AMZN) is reportedly considering the introduction of an ad-supported streaming tier as a strategic move to gain a competitive edge in the streaming industry, challenging rivals like Netflix (NFLX) and Disney (DIS). This new tier could potentially offer customers a cost-effective option while simultaneously boosting membership numbers and providing an attractive platform for advertisers.

AMZN:

121.23 ▼ -5.38 (-4.25%) Today

121.40 ▲ +0.17 (+0.14%) After Hours

GameStop Fires CEO, Names Ryan Cohen as Executive Chairman 🕴️🚪

GameStop (GME) abruptly fired CEO Matthew Furlong, leading to a more than 20% drop in share value. Board chairman Ryan Cohen, founder of Chewy, has been appointed as the new executive chairman. Meanwhile, Alain Attal, a former Chewy executive, was made the lead independent director, and Mark Robinson, previously general counsel, has been named as general manager and principal executive officer. The reshuffle was announced alongside a reported Q1 net loss of $50.5 million.

GME:

26.11 ▲ +1.42 (+5.75%) Today

21.10 ▼ -5.01 (-19.19%) After Hours

Campbell Soup Surpasses Earnings Expectations 🥣📊

Campbell Soup Company (CPB) pleasantly surprised investors with earnings that surpassed market expectations. However, despite the positive news, the company's shares fell by over 8%. The higher-than-anticipated results indicate a robust demand for Campbell's products, which bodes well for the company's future performance. The solid earnings report may prompt analysts to re-evaluate the stock and potentially revise their future earnings estimates upwards.

CPB:

46.09 ▼ -4.50 (-8.89%) Today

46.20 ▲ +0.12 (+0.26%) After Hours

After Hour Movers 📈🌙

Trip.com Group Limited (TCOM) had a trading volume of 4.57 million shares, with a 3.42% increase in stock price to $35.12. The company's market valuation is $21.52 billion. Analysts have a consensus Buy rating for TCOM, with a mean rating of 1.90. The EPS for the current quarter is expected to be $0.25.

TCOM:

34.29 ▼ -0.83 (-2.36%) Today

35.70 ▲ +1.41 (+4.11%) After Hours

GameStop Corp. (GME) has fired CEO Matt Furlong and seen its shares plunge over 20%. Chairman Ryan Cohen will take on a new executive role, focusing on management oversight and capital allocation. The company reported lower-than-expected sales for the first quarter and has struggled to adapt to the shift toward online game sales. GameStop's shares fell to 19.19% in extended trading after the announcements.

GME:

26.11 ▲ +1.42 (+5.75%) Today

21.10 ▼ -5.01 (-19.19%) After Hours

HashiCorp Inc (HCP) reported better-than-expected Q1 revenue of $137.98 million, up 37% YoY. The company announced spending cuts and an 8% reduction in its workforce. HashiCorp expects Q2 revenue of $137 million to $139 million and full-year revenue of $564 million to $570 million. Shares were down 22.78% in after-hours trading.

HCP:

34.77 ▼ -0.72 (-2.03%) Today

26.85 ▼ -7.92 (-22.78%) After Hours

Smartsheet Inc. (SMAR) shares plummeted 18% in after-hours trading following a weak free-cash-flow outlook and missed billings. Although the company had a strong quarter and raised its adjusted earnings forecast, concerns arose due to the billings shortfall. Smartsheet reported a loss of $29.9 million for Q1 but experienced revenue growth.

SMAR:

48.99 ▼ -2.67 (-5.17%) Today

39.98 ▼ -9.02 (-18.41%) After Hours

Grief (GEF) had a mixed second quarter. While net income decreased to $111.2 million, the company showed strength with adjusted EBITDA reaching $228.6 million. Net cash provided by operating activities increased to $210.8 million, and adjusted free cash flow rose to $185.5 million. However, total debt also increased to $2,289.2 million. Despite the challenges, the CEO praised the team's dedication and highlighted their excellent work.

GEF:

64.29 ▲ +1.99 (+3.19%) Today

67.05 ▲ +2.83 (+4.41%) After Hours

Oxford Industries (OXM), the parent company of Tommy Bahama and Lilly Pulitzer, reported better-than-expected quarterly earnings but lowered its guidance for the year due to macroeconomic pressures and cautious consumer spending. Shares dropped by 7.70% in after-hours trading.

OXM:

107.19 ▲ +3.81 (+3.69%) Today

98.95 ▼ -8.26 (-7.70%) After Hours

Semtech (SMTC) reported better-than-expected first-quarter earnings and revenue. The company's stock rose 21% in after-hours trading. Despite a net loss of $29.4 million, or $0.46 per share, Semtech exceeded analysts' estimates. Adjusted income was $1.5 million, or $0.02 per share. Revenue for the quarter reached $236.5 million, beating expectations. For the second quarter, Semtech expects earnings between a loss of $0.02 and $0.06 per share, with net sales projected to be between $233.0 million and $243.0 million.

SMTC:

22.43 ▲ +0.34 (+1.54%) Today

27.20 ▲ +4.77 (+21.27%) After Hours

Torrid Holdings (CURV) reported a decline in profit and revenues for the first quarter. The company's stock dropped 12% in after-hours trading. Net income was $11.8 million, or $0.11 per share, missing analysts estimates. Revenue decreased to $293.9 million, below the consensus estimate of $309 million. The company expects lower revenues for the second quarter and full-year revenue below market expectations.

CURV:

2.46 ▲ +0.25 (+11.31%) Today

2.17 ▼ -0.30 (-12.15%) After Hours

Lakeland (LAKE) reported positive financial results for Q1 FY2024, with net sales of $28.7 million and a gross margin of 43.4%. The company experienced growth in its Fire product line and is focused on expanding into higher-value markets. Lakeland remains optimistic about its outlook for the fiscal year.

LAKE:

12.28 ▲ +0.88 (+7.72%) Today

13.75 ▲ +1.47 (+11.97%) After Hours

Lovesac (LOVE), a home furnishing brand, reported strong Q1 FY24 results with net sales of $141.2 million, beating estimates, and a 15.1% increase in comparable sales. Gross profit rose by 7.0% to $70.7 million, but the margin contracted due to higher discounting. The company reported an operating loss of $(5.9) million and an adjusted EBITDA loss of $(2.4) million. Lovesac holds $45.1 million in cash and equivalents. The CEO remains optimistic about the company's future despite challenging economic conditions.

LOVE:

23.12 ▼ -1.37 (-5.59%) Today

23.75 ▲ +0.63 (+2.72%) After Hours

Sectors 🏭🚚

Out of the 11 sectors, 6 closed in the green today, with Energy leading the way with a 2.65% increase, while Technology lagged behind with a decline of -1.62%.

Conclusion 👋

The financial landscape today saw a proposed merger sparking concerns in the golf industry, regulatory notice for Binance, mixed performance in the stock market, lawsuits over intellectual property, and significant stock movements for Yext and Affirm. Volvo launched an affordable electric SUV, Tesla qualified for full EV tax credits, and Amazon considered an ad-supported streaming tier. GameStop experienced a CEO change, while Campbell Soup surpassed earnings expectations. Remember to keep watch for more market movements, and keep up the good work traders!

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