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GameStop (GME)
Shares in GameStop (GME) surged 13% in pre-market trading on Wednesday, after the company confirmed plans to buy bitcoin (BTC-USD) with its cash holdings.
GameStop said in a release on Tuesday its board "has unanimously approved an update to its investment policy to add Bitcoin as a treasury reserve asset."
This comes after CNBC reported in February that the video game operator turned popular meme stock was exploring investing in cryptocurrencies.
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In results released after the bell on Tuesday, GameStop reported that net sales fell to $3.8bn (£2.9bn) for the year, down from $5.3bn in 2023. Adjusted earnings before interest, tax, depreciation and amortisation dropped to $36.1m, from $64.7m in 2023.
However, the company's fourth quarter earnings still came in ahead of estimates, which Dan Coatsworth, investment analyst at AJ Bell (AJB.L), said this had "put a rocket underneath GameStop’s shares in pre-market trading. Its shareholders clearly believe the company is going to the moon and it’s now one step closer, albeit the stock has a history of going up and down faster than a yo-yo."
As for its plans to invest in bitcoin, Coatsworth said that by doing so, GameStop "effectively positions itself as going down the same path as Strategy (MSTR) (formerly called MicroStrategy ) whose shares have become a proxy for the bitcoin price due to its large investment in the digital asset. No-one ever asks what MicroStrategy does day-to-day as a business, and increasingly the same could apply to GameStop."
United Parcel Service (UPS)
Shares in UPS (UPS) fell 5% in Tuesday's session after Bank of America Securities lowered its price target on the parcel delivery company.
BofA Securities cut its price target on the stock to $129 per share from $133, citing weaker demand due to tariff headwinds.
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Uncertainty over US president Donald Trump's tariff plans continues to loom over markets, with reciprocal duties due to come into effect next week.
While recent comments from Trump have led to investor optimism that Trump may temper his plans, concerns persist that tariffs could stoke inflation and impact economic growth.
(UPS)
Trump Media & Technology Group (DJT)
Shares in Trump Media (DJT) jumped nearly 9% on Tuesday, after it was announced that the company will team up with Crypto.com to launch exchange-traded funds (ETFs).
DJT, which owns Trump's social media site Truth Social, said that it will partner with Crypto.com to launch a series of ETFs through its fintech arm Truth.Fi.