Roblox Game – 3 Things to Watch By Fintech Zoom
By Liz Moyer
Fintech Zoom — Lately, it’s been a tale of two stock markets.
On the one side: industrial and cyclical stocks that are roaring back on optimism over the reopening trade On the other: the tech stocks that had driven the bull market for the last three years.
At one point it seemed impossible to keep pace with the major indexes without the big tech names, but that’s not necessarily the case now. Apple (NASDAQ:) and Microsoft (NASDAQ:) are among the tech stocks that stumbled, pulling the down more than 2%.
Now we have to wait for the dip-buyers to show up. Bargain hunting tech stock investors have turned the tables in previous tech pullbacks.
There is a lull in between earnings season as thoughts turn to warmer spring weather, the spread of vaccines to more people, and dreams of vacation travel at some point in the not-so-distant future.
Here are three things that could affect markets tomorrow:
1. GameStop‘s new strategy: ecommerce
GameStop Corp (NYSE🙂 surged 35% on Monday after Chewy Inc (NYSE🙂 founder and board member of the electronics retailer unveiled a new ecommerce strategy. It’s the latest twist in the weird trading frenzy that has caught GameStop in a back and forth between retail traders and professional managers who had bet heavily against the stock.
Ryan Cohen, who invested in GameStop last year and took a board seat, will be leading the effort to transform the company. GameStop shares are up nearly 1000% this year. Cohen, the Chewy founder, is reportedly the reason GameStop’s CFO Jim Bell will depart later this month. Investors will be watching to see whether GameStop shares will take a breather.
2. Direct listing for Roblox
Roblox, maker of a gaming platform people can use to play other people’s games, is set to raise money selling 198 million shares at $43 a piece in a direct listing this week after previously delaying an IPO. The listing could value the company at $29 billion.
Why didn’t Roblox go public earlier? The December debuts of Airbnb and Door — which both soared on their opening days — made it hard to properly value the shares. Direct listing is a relatively new way to go public that cuts out the Wall Street underwriter, allowing the market to set the price.
3. Biden‘s stimulus plan comes to a vote
The House will have the final vote on President Joe Biden’s Covid relief bill on Tuesday after it passed the Senate with some revisions. That clears the path for the president to sign it by next week, before some unemployment benefits run out.
Stocks have been reacting to the reopening trade, and the prospect of $1,400 checks to individuals earning up to $80,000 means more spending could come. That would benefit retailers such as Kohls Corp (NYSE:), Target Corporation (NYSE🙂 and Walmart Inc (NYSE🙂 and potentially give a boost to online used car dealers like CarMax Inc (NYSE:).
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