Playr Gonna Play
GameStop (GME), the popular gaming company, has come a long way from hawking used Game Boy (NTDOY) cartridges. The once and future king of so-called “meme stocks” is embracing its newfound fanbase among the online retail investor community by prioritizing crypto, blockchain, and the space known as “web3.”
The consumer electronics company just announced its latest foray into this world: GameStop Playr. GameStop Playr is a gaming system that’s built on blockchain technology, intended to serve as a new ecosystem for downloading and playing video games. To make this happen, GameStop is partnering with Telos, a blockchain network with a focus on sustainability.
Playr is being developed as a platform for web3 gaming, or games built on blockchains in which users can typically own and trade in-game items via crypto tokens or NFTs. Telos heralded the announcement as a sign that web3 gaming was going mainstream. Playr is not yet active, with no known compatible games.
On Wednesday, GameStop may discuss Playr further when it releases its earnings report. Here’s what else to watch for on Wall Street this week.
Economic Data
Today, the week will begin with the release of the ISM services PMI for the month of May. This metric increased to 51.9 in April, which was just above expectations and marked a fourth consecutive month of growth in the services ring sector. Additionally, investors will get an update on the number of new orders for manufactured goods in May. In April, these increased 0.9%.
Tomorrow, investors will be looking at the IBD/TIPP Economic Optimism Index, which surveys the overall outlook for the US economy. This index dropped 5.8 points to 41.6 in May, well below expectations. The metric has been pessimistic, or at a reading below 50, for the past 21 months.
On Wednesday, the US trade gap will be updated for the month of April. The US balance of trade hit a four-month low of $64.2 billion in March as exports increased 2.1%. This increase was prompted by sales of crude oil, fuel oil, natural gas, passenger cars, and travel. The 30-year fixed-rate mortgage, which currently sits at 6.91%, will also be adjusted next week.
On Thursday, investors will get an update on the state of US unemployment with the numbers of new and ongoing jobless claims. For the week ended May 27, the number of Americans filing unemployment rose to 232,000, down from March and April.
Earnings
Today, two major software companies will offer an update on their respective businesses: GitLab (GTLB) and Sprinklr (CXM). Investors will look for more good news from GitLab. The open-core company reported revenue of $123 million last quarter, locking in five straight quarters of revenue growth.
Tomorrow will bring reports from Thor Industries (THO) and Dave & Busters (PLAY). Thor Industries will be in the hot seat as Q1 revenue dropped nearly 40% on a yearly basis. Keep an eye out for a report from Smuckers (SJM) as well.
Campbell Soup Company (CPB) will potentially discuss the new look of its iconic cans and its $50 million investment into its Camden HQ. There will also be a report today from Rent the Runway (RENT), which has struggled to grow since going public in late 2021.
The major earnings reports will wrap up on Thursday this week as DocuSign (DOCU) and Vail Resorts (MTN) keep investors in the loop. Like most other tech companies, DocuSign has been on a mission to cut costs and streamline its business over the past few months. Investors will be eager to hear more specifics on how the digital document company plans to do that.
Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.
SOSS23060501