Square Stock – This Meme Stock Has a Lot to Prove
Prior to Money & Market Week June 6, 2021: After the shortened trading week, the earnings season is starting to slow down. Take a look at the IPOs of popular clearing companies and analyze recent meme stock earnings.
We will also look at how consumer prices changed in May. It should give us insight into the state of inflation in the United States.
Here are some things to watch out for in the coming week on Wall Street:
Forefront of IPO
There are some Initial public offering (IPOs) This week’s calendar.
Marqeta Inc. will price the IPO on Thursday. It is listed under Fintech Zoom symbol MQ in Nasdaq.
Simply put, the company has developed a platform for making digital payments between businesses and customers.
inside that S-1 filing Marqeta works with the Securities and Exchange Commission to operate in 36 counties and issue over 320 million cards.
The company states that it processed approximately 1.6 billion transactions worldwide in 2020.
Marqeta’s total revenue increased from $ 143 million in 2019 to a record $ 290 million in 2020.
In the first three months of 2021, the company reported total revenue of $ 107 million, 123% of the $ 48 million reported in the same three months of 2020. Has increased.
Marketa’s gross margin in the first quarter of 2021 was 46%, compared to 38% in the first quarter of 2020.
Despite the increase in total income, Marketa experienced a loss.
In 2020, the company reported a net loss of $ 48 million. The loss was below $ 58.2 million in 2019.
in the meantime Fundraising roundThe company has raised nearly $ 502 million in equity investments from 83North, DFS Services, ICONIQ and Granite Ventures.
offering: The company plans to sell 45.5 million shares in the $ 20 to $ 24 price range per share.
We aim to raise approximately $ 1 billion in this offering.
Currently, no shareholders plan to buy shares at the IPO price.
by Renaissance CapitalAt the midpoint of $ 22 per share, Marketa has a market value of $ 12.4 billion.
JP Morgan, Goldman Sachs, Citi, Barclays, William Blair and Keybank Capital Markets are all bookrunners for this deal.
skinny: I like this company.
I like the fact that top-line revenue has increased significantly year-on-year.
It also does a very good job of partnering with large companies to work on that payment platform.
These are the companies we use every day, such as DoorDash and Square.
I think the potential mid-price range is reasonable here. So if you’re looking for an IPO investment, you could do much worse than Marketa.
Deeper Dive: GameStop Revenue
Video game sellers report earnings on Wednesday.
The stock became popular after users of the Reddit group r / wallstreetbets had members buy the stock to narrow short sales.
GameStop’s share price has increased by almost 1,500% since January 1st of this year.
While stock prices have skyrocketed, the company’s finances are struggling.
GameStop revenue struggles to be consistent
In 2020, GameStop reported significant losses per share of $ 1.60 and $ 1.40 in the second and third quarters.
It was sandwiched between a positive profit of $ 1.30 per share in January 2020 and 2021.
GameStop’s January earnings trend was strong, supported by holiday sales, but revenue fell sharply in the following quarters.
GameStop has exceeded Wall Street earnings per share expectations in just nine of the last 16 quarters.
GameStop’s quarterly revenue declining trend
GameStop’s past quarterly revenues show a similar trend.
The quarterly highs have fallen since 2017.
It also reflects the revenue trend of higher revenues reported in January each year compared to the decline in quarterly revenues for the other three quarters.
GameStop’s January 2018 quarterly sales were up to $ 3.1 billion. The latest maximum was only $ 2.1 billion from January 2021.
Only four of the last 16 quarters have beaten analysts, exceeding Wall Street’s expectations for sales.
Wall Street predicts that the company will report a loss of $ 0.68 per share for $ 1.15 billion in revenue.
skinny: This memestock surged in 2021, but its fundamental analysis does not support it.
Just the opposite.
Basically, this stock should have fallen as recovery after COVID-19 has not yet taken place.
Prior to Money & Market Week: Data dump
The US Bureau of Labor Statistics Monthly Core Consumer price Index Thursday in May.
This index measures changes in the prices of goods and services, excluding food and energy.
We are considering one of many benchmarks for studying inflation in the United States.
Core consumer price index rose 0.9% in April 2021
Consumer price inflation in April was 0.9%, the largest month-on-month increase since before 2005.
Including food and energy, the index rose 0.8% from March to April, up 3% year-on-year.
This indicates that the prices of goods and services have risen since February 2021.
Analysts expect the May index to rise 0.5%.
To end Prior to Money & Market WeekLet’s take a look at some keys here Revenue Report to be published this week:
Marvell Technology Inc. (Nasdaq: MRVL)
Stitch Fix Inc. (Nasdaq: Fixed)
Casey’s General Stores Inc. (Nasdaq: Whimsical)
Thor Industries Inc. (NYSE: THO)
Academy Sports & Outdoors Inc. (Nasdaq: so)
JJill Inc. (NYSE: Jill)
Campbell Soup Co. (NYSE: CPB)
Verint Systems Inc. (Nasdaq: VRNT)
Neptune Wellness Solutions Inc. (Nasdaq: Nep)
Chewy Inc. (NYSE: CHWY)
John Wiley & Sons (NYSE: JW.A)
Mission Produce Inc. (Nasdaq: Avoidance)
Dave & Buster’s Entertainment Inc. (Nasdaq: play)
FuelCell Energy Inc. (Nasdaq: FCEL)
Nathan’s Famous Inc. (Nasdaq: NATH)
That’s all for this week.
Until next time…
This Meme Stock Has a Lot to Prove Source link This Meme Stock Has a Lot to Prove
Square Stock – This Meme Stock Has a Lot to Prove