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Blockbuster movie sales boost AMC, GameStop earnings preview, Robinhood in focus

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Brian Sozzi and Jared Blikre break down some of Tuesday’s early market movers, which include: AMC shares seeing some bounce after a tremendous box office showing from Marvel’s latest film Shang-Chi, GameStop preparing to report its Q2 earnings as the stock continues to trade above $200, and the news surrounding Robinhood as the market continues to see concerns over the possible ban of payment for order flow.

Video Transcript

BRIAN SOZZI: We have to hit some market movers here or those stocks moving on the Yahoo Finance trending ticker page. And I'm locked and loaded on the movie sector. Good weekend for Shang-Chi and the Legend of the Ten Rings holding over $90 million over the Labor Day weekend. Jared, tell me I mean, that has to be good news for AMC. What are you seeing on the charts?

BRIAN SOZZI: I think so, and good news for the Wall Street Reddit Army here. Now let's take a look this is a longer term chart six month months of AMC. This doesn't even capture the original burst that we had in January and February, But you can see this is a solid technical setup here we had this consolidation that we were noting for just about over 2 months. And then we broke to the upside still respecting these short term trend lines. So looking fairly bullish on the technical setup for AMC Entertainment. And then on the fundamentals side guess what? We got GameStop earnings this week, Brian. And I know, you're checking out the numbers there. The Companies still a Black box I don't think-- BRIAN SOZZI: I'm also-- JARED BLIKRE: Know how-- Yeah.

BRIAN SOZZI: Also checking out the calendar because I misspoke, it's actually Tuesday is not Monday. But please do continue.

BRIAN SOZZI: There you go. Yeah, so GameStop I mean, you can get into some of the numbers there but I'm not sure how relevant they're going to be still looking for their breakout strategy. But there's another six month chart and let's take this back to the beginning of the year. So we can see that additional spike 1, 2, 3 and we got a smaller one right here, But still maintaining those gains. I mean, who would have thought in February, March sassy that we'd still be talking about GameStop as a $200 stock that's still blows my mind sometimes.

BRIAN: Jared, I'm looking at that chart and I'm no technical analyst here, but it's making lower highs. Is that bearish or bullish.

JARED BLIKRE: That's an excellent question, Brian. So let's take a look at the chart here this is what I would call a consolidation. So the definition of an uptrend is when you have higher highs and higher lows. So you're going like this boom, boom. But here we're just feeling out what direction we want to go in. And so, we had a test in June of these earlier highs from March and that is correct. We have lower highs right here, we don't have confirmation of that but theoretically, this is how I'm seeing the market action right now just this giant consolidation. And it could go on for a few more months and then you have a breakout could go to the upside, could go to the downside. But bottom line this stock is coiling for a really big move and I know we see it move 10%. And think that's something but we've seen it move 100% before. And like I said, we don't know the direction but from consolidation periods come extended moves.

BRIAN SOZZI: Jared, let's stay on these meme stocks here maybe you could pull up Robinhood. I was just talking to Kathy Wood about that on Friday. She is bullish on Robinhood, she's been she was buyer, she was a buyer of Robinhood in early August that set the stock really off into a tizzy. I mean, went absolutely through the roof it has come back down, but she's told us. We'll have more on this later on in the show. But did tell me she doesn't expect payment for order flow to be banned, which is obviously that would be good for Robinhood.

JARED BLIKRE: Yeah, and we saw that in the news Gary Gensler who's the chief watchdog for stocks in the US head of the SEC or at least a chair. He's been making noise about potentially getting rid of payment for order flow he said that option is on the table. Well, that's robinhood's whole business there and it's also a big part of Citadel and virtue financials business. They're on the opposite side, they're paying Robinhood for those client orders. So it has huge implications for a number of companies in the industry but probably not so much for even the investing public overall.

I've been critical of it in the past. I don't think it's necessarily as big a deal as people make it out to be, but let's face it there are firms making windfall profits on these moves. And any time that happens there's probably pocket that's basically broadcast in their pockets, where there should be a little bit more innovation. Without getting too much into the weeds here because this could easily be a five minute conversation about market microstructure. And it looks like we do have the bell here in less than a minute my bottom line on Robinhood is this is a big company. I was looking for them in my heatmap here they're in the bottom left.

If we go to a market cap company. All right $36 billion, they're just out of the gate. This is a pretty much a brand new company and they're in that phase where they have to focus on becoming maintaining-- becoming or maintaining profitability they have been profitable. But also protecting their business and also protecting their customers because they've forgotten that $70 million fine from FINRA because of all those lapses, so see if they can rebuild. And hopefully, serve their customers a little bit more sounds like we got the opening bell here and we got the company.

BRIAN SOZZI: Yeah, Yeah, MSA safety ringing that opening bell. Jared commemorating the 20th anniversary of September 11, you see executives down at the New York Stock Exchange ringing that open bell to really honor the thousands of lives lost on that tragic day. Now Jared where were you on September 11?

JARED BLIKRE: I was in my apartment, I was working from home that day. I had I did have that flexibility, wow, and I was just locked in front of the TV. I really couldn't do anything else for hours I was just simply in shock. But definitely one of those days that you always remember where you were.

BRIAN SOZZI: Yeah, no absolutely. I know for me, I was just trying to get a College Park parking lot definitely something you never forget and hopefully, obviously we never see ever again.