News of the day for March 27, 2024
GameStop Slumps on Quarterly Earnings Miss
Shares in GameStop (GME) were down 17% about two hours before the opening bell after the legacy meme stock disclosed quarterly earnings that fell considerably short of Wall Street’s expectations amid an ongoing shift to digital downloads and softening consumer spending. In the three-month period ending Feb. 3, the brick-and-mortar video game retailer posted adjusted earnings of 22 cents per share, compared to analysts’ estimates of 30 cents a share, while its $1.79 billion revenue for the period also missed estimates.
Robinhood Soars on Plan to Launch Credit Card
Shares in Robinhood Markets (HOOD) surged about 7% in premarket trading after the online trading app said it was launching a credit card, as it moves to become a one-stop stop for financial services. Robinhood said the card is available exclusively to Robinhood Gold customers and comes after it bought X1 Inc., a credit-card startup, last year. The Robinhood Gold Card will have no annual fee, no foreign transaction fees, and offer 3% cash back, in the form of reward points, on spending. Bookings made via Robinhood’s travel portal will fetch 5% cash back, the company said.
Truth Social Owner Rises Before Second Day of Trading
Shares of Trump Media & Technology Group (DJT), newly merged with shell company Digital World Acquisition Corp., jumped about 13% in premarket trading ahead of its second day as a public company, after it ended Tuesday up 16% at $57.99 a share, a level that made former U.S. President Donald Trump’s stake valued at more than $4.6 billion. Trump Media is the owner of the social network Truth Social, and the ticker “DJT” corresponds to Trump’s initials.
Merck Rises as US Approves Drug to Treat Potentially Fatal Pulmonary Arterial Hypertension
Merck shares rose more than 4% in premarket trading after the Food and Drug Administration (FDA) approved its new drug to treat pulmonary arterial hypertension, a potentially fatal disease that affects nearly 40,000 people in the U.S. The drug will be sold under the name Winrevair. Merck paid $11.5 billion for the company developing the medicine in 2021.
H&M Earnings Beat Expectations on Popular Spring Look
Hennes & Mauritz posted a stronger-than-expected operating profit, sending its Stockholm-listed shares surging. New H&M Chief Executive Officer (CEO) Daniel Erver said shoppers liked the brand’s spring collections. “The quarter’s sales gradually improved during February with well-received Spring collections, which is a positive sign that we are on the right track,” he said in the earnings statement. The Swedish group has struggled to maintain its position in the fast-fashion sector as it trails bigger rival Zara while low-cost online retailers such as China’s Shein gain market share. The Swedish retailer’s shares surged more than 11% in Stockholm trading.
U.S. stock futures are higher, while bitcoin (BTCUSD) is holding levels around $70,000. Here’s what investors need to know today.
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Investors are closely watching the latest developments in the stock market as GameStop, Robinhood, Trump Media & Technology Group, Merck & Co., and H&M make headlines with their recent performances. Here’s a breakdown of the key events shaping today’s market activity.
