Meme traders will watch GameStop (GME) closely today. The original meme sensation stock once traded at above $75. In after-hours trade, shares lost 15% in value. The seller of gaming hardware and accessories reported a 19.7% drop in revenue.
GameStop’s inability to grow during the all-important holiday quarter is a red flag. The firm reported revenue of $1.79 billion. Hardware and accessories accounted for 61% of total sales, a troubling trend. Profit margins are usually lower for those goods.
In the payments processing market, watch Paychex (PAYX). Traders will react to its Q3 results posted this morning. The stock is unlikely to break above the $120 level, a price shares held for the last six months. Investors may want to trade fintech stocks like Nuvei (NVEI), PayPal (PYPL), or Block (SQ). Those companies have more volatility. Their upside is greater, especially if they post results that exceed analyst expectations.
Automotive
The delisting of Fisker (FSR) should help Ford Motor (F). Instead, the stock is stalling. Shares need to break out of the $12 - $12.50 trading range. General Motors (GM) already broke out to touch 52-week highs at $44.00. Both firms expect the collapse of a bridge in the Port of Baltimore would disrupt shipments.
GM expects minimal impact after a ship caused the bridge to collapse. However, Ford’s CFO expects a negative effect on deliveries.
