GameStop Flopped 50% in 15 Minutes

Tale of the Tape

Good evening, y’all. What a wild day in the market of stocks. 🤠 🏜️

The Dow Jones Industrial Average advanced 1.5% to close at a new all-time high. The Russell 2000 rallied nearly 2% while the Nasdaq closed in negative territory. 

Energy and financials both flew more than 2%. 💸 Tech was the only sector to close lower— $XLK came in 0.40%. 

Bitcoin bounced to $57,400. The crypto is just a stone’s throw away from its all-time high. 🤭 ($58,360)

GameStop ripped, then dipped. △▼ The Memestock madness continues. 🚀🚀 See more below. 

DraftKings dashed 11% and closed at a new all-time high. Is $DKNG ($69.29) on its way to the century club?? 💯 Place your bets… 

Buffett’s Berkshire Class A broke through 400K for the first time ever. The stock couldn’t finish above the round figure and instead closed at its 3rd straight all-time high. Perhaps Portnoy owes the Oracle of Omaha an apology?? 

Roblox rallied in its trading debut. 🕹️ 👾 $RBLX opened at $64.5, zipped to $74.83, then closed at $69.50. More on this below. 

Boeing bopped 6.4% and closed at its highest price since March 6, 2020. Can $BA bounce back above $300?? Here’s the incomplete weekly chart:

And here are the closing prints: 

S&P 5003,898+0.60%
Russell 20002,285+1.81%
Dow Jones32,297+1.46%

What’s 50% Between Friends 

The MemeStock madness carries on. GameStop galloped 41%, ticked an intraday high of $348.5, then free-fell 50% to $172. The stock was halted 7 times during the day… Interesting. 🤣

Here’s the freaky 5-minute chart:

$KOSS carried on 69% while $AMC advanced ~20% before breaking back down to negative territory. $AMC and $GME were the two most active streams on Stocktwits. Will the Memestocks march on?? Time will tell… 

14 Benjamins

The House of Representatives officially passed the $1.9T ($1,900,000,000) stimulus package today, distributing $1,400 checks to most Americans. The House vote was 220-211 only days after the Senate passed the bill in a similar 50-49 vote. The bill will now go to President Biden’s desk, where he promised to sign it Friday afternoon. ✍️ 🇺🇸

So what’s actually in the bill? 🤔 $1.9T is a lot of money, after all.

Here’s a quick breakdown:

  • $1,400 stimulus checks
  • $300 increase in unemployment
  • $3k-$3.6k annual child tax credit
  • $34B for Affordable Care Act subsidies
  • 100% Cobra subsidies
  • $350B in state/local aid
  • $14B for vaccine distribution efforts
  • $25B for rental aid

Curious about the arrival of your next check? You could find it as early as next week, according to the Treasury Department.

How are you going to spend your stimulus? Stocks, Socks, Roblox, or something else? 😂

A Build-Your-Own IPO

Roblox, the gaming platform that allows users to build their own adventures, made its trading debut around 1:40pm EST today.

The insanely popular platform (seriously, as of last July, 2/3 of American kids between ages 9-12, and 1/3 of all kids under 16 in the US play it 😅) opened at $60.5, then immediately jumped to a daily (and all-time, lol) high of $74.83. The company now has a $45B market cap.

Here’s the 1-minute chart:

David Buszucki, CEO and Founder of the site, tweeted:

In 2004, we founded @Roblox with the vision of connecting the world. Today, as we celebrate our direct listing on the @NYSE, we recognize the potential ahead of us: to build the platform where billions of people come together to learn, work, and play. #RobloxIPO

Did you snag some $RBLX? Let us know by posting on its stream!

One Happy Forest 🌲 😃

There’s a giant smiley face in the forest next to Oregon’s highway 18… no, we’re not joking. 

Hampton Lumber planted the trees in 2011 during a reforestation attempt. As the trees’ needles change color in autumn, a giant hillside smiley face becomes visible. 

Kristin at Hampton Lumber shared some details on the fun project: 

…they used a rope to measure the circle out and the eyes and mouth were triangulated from that point. Douglas fir was planted for the eyes and mouth and the rest of the face was filled out with larch. Both species will eventually be turned into lumber at our sawmills in willamina and tillamook. Let’s just say smiley face designs are not the most efficient reforestation methods out there. With planning and planting, it took about a week to finish. 

Take a look: 

Earning Round Up

Good ol’ AMC reported earnings today. 🍿 🔥 The Memestock missed on earnings estimates, but beat on revenue. Despite theater attendance down 92.3% in US markets, AMC pulled through and reported better-than-expected results. 

Here are the stats

EPS: (-$3.15) vs (-$3.12)
Revenue: $162.5M, -88.8% YoY

$AMC advanced ~6% after hours. 

Oracle beat analysts’ estimates, attributing its successful quarter to increased demand for business software as we continue to work remotely. 🏡 Oracle’s CEO, Safra Catz, commented: 

We continued to extend our huge lead in the cloud ERP market as Fusion ERP grew 30% and NetSuite ERP grew 24% in Q3. Oracle’s rapidly growing, highly-profitable, multi-billion dollar cloud ERP businesses helped drive subscription revenue up 5% and operating income up 10% in the quarter.  

Here are the numbers:

EPS: ($1.16) vs ($1.11) est
Revenue: $10.09B, +3% YoY

$ORCL fell ~2% after hours. 

Earnings This Week

Be sure to know when your stocks report earnings. Here’s the earnings calendar

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