Breakout

Massive layoffs for HP, Tesla is on fire and GameStop powers up

Breakout

Your Trending Tickers for Friday, May 23rd as measured by your yahoo Finance Ticker searches are:

Hewlett Packard (HPQ) is up nearly 6% today after releasing its earnings report early yesterday afternoon... as in 30 minutes early and during market hours. Despite the snafu earnings were more or less in line in terms of earnings and revenues. The most newsworthy aspect of the report was that another 11 to 16,000 HP workers are going to lose their jobs. That will bring the total layoffs to about 50,000 during this most recent HP restructure as the company struggles to move from hardware into services. Since the company was removed from the Dow Jones Industrial Average last September it's up 50%, outperforming the new Dow by more than five-fold.

Next up is Tesla (TSLA), it's up more than 5% on the week, one of many recently battered momentum names putting in a reversal over the last five days. The headline catalyst in this case involves word that Panasonic is bidding to be Tesla's sole battery partner in the so-called Gigafactory. As with all things related to the plant, Tesla isn't above leveraging favorable economic terms in exchange for exclusivity. Tesla is actually breaking grounds in two different states as it continues to grind out better terms from local politicians. Shares of Tesla are up 37% for the year.

And finally GameStop (GME) is up nearly 5% today after beating the street with their quarter one earnings. Here's where easy headlines from other sources don't synch up with trading reality. Earnings were okay but don't buy the idea of great revenues being driven by new consoles. Revenues actually came in light for GameStop compared to estimates. The story here is that these shares had lost nearly 40% from all-time highs last winter through earlier this week. GameStop has some secular issues from competition and downloads but they're still a decent company. Apparently that fact came as a surprise to some bears, leading to a nice 5% gain. Nice job, gamers!

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