Feb.10 -- Anders Opedal, chief executive officer at Equinor ASA, discusses fourth-quarter earnings, oil prices and dividend payments. He speaks on “Bloomberg Daybreak: Europe.”
Feb.10 -- Anders Opedal, chief executive officer at Equinor ASA, discusses fourth-quarter earnings, oil prices and dividend payments. He speaks on “Bloomberg Daybreak: Europe.”
With April 15 on the horizon it's a good idea to start getting your crypto taxes in order.
(Bloomberg) -- African Gold Acquisition Corp., a special purpose acquisition company targeting gold assets on the continent, raised a more-than-expected $360 million ahead of a listing in New York on Friday.“We are the only Africa mining-focused SPAC amongst a sea of SPACs,” Rob Hersov, the founder and chairman of the company, said by text message. Potential acquisitions will be in “well-trodden mining countries, so no surprises. And we will likely buy a mining company and possibly add others thereafter.”Hersov is the son of Basil Hersov, who ran AngloVaal Mining Ltd., the company founded by his father and once one of South Africa’s biggest mining companies. Chris Chadwick, a former director of Sibanye Stillwater Ltd., is chief executive officer.The offer, which was initially set to raise $300 million, saw stock sold at $10 a share.“There are a lot of interesting mining companies and assets looking for capital to expand,” Hersov said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Money markets are no longer betting on a Bank of England interest-rate cut, as a surge in bond yields worldwide sharpens investors’ focus on a global economic recovery.Traders now see no policy rate changes for the next year. That’s a sharp turnaround from September, when traders were contemplating rates as low as minus 0.1% for this year, after the Bank of England said it was studying the feasibility of such a move.The trigger for the u-turn came from this month’s BOE meeting, where policy makers stressed that negative rates are not imminent, even as the highly-anticipated study encouraged banks to prepare for such a scenario. Traders further scaled back expectations amid central bank’s optimism over a powerful economic rebound due to the U.K.’s vaccination efforts, and as yields on Treasuries to German bunds and gilts climbed to pre-pandemic levels.“Markets are able to price easily some tightening in this sort of market environment,” said Bob Stoutjesdijk, a Rotterdam-based fund manager at Robeco Institutional Asset Management. “It’s currently a little like a fire hose out of control, so probabilities and expectations for BOE hikes can go up.”Eye on HikesMoney markets see interest rates holding steady through to the end of the year, with bets on hikes beginning at the start of 2022. Bolstering these bets is the U.K.’s progress toward reopening its economy, having administered more than 18 million shots, according to Bloomberg’s vaccine tracker.“The direction of travel has clearly changed, given the velocity of vaccination and the repricing in the bond market is fast and furious,” said Tanvir Sandhu, chief global derivatives strategist at Bloomberg Intelligence.The BOE last eased interest rates in March 2020. It slashed the bank rate by 65 basis points to a record low of 0.1% in an out-of-meeting response to the coronavirus pandemic.“We continue to doubt that the committee will press ahead with sub-zero rates, even if the outlook darkens,” wrote Antoine Bouvet, senior rates strategist at ING Groep NV. “Quantitative easing still appears to be the tool of choice for offering further stimulus.”(Updates with price action throughout, chart and quote in last paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Germany’s financial regulator pursued criminal complaints over alleged manipulation of Wirecard AG shares even after a review of more than half of the overall trading volume found no clear evidence of wrongdoing.BaFin issued the complaints against short sellers and Financial Times journalists in April 2019, almost two months after the probe by a surveillance unit at the payment company’s main exchange in Frankfurt. It’s not clear why the regulator chose to pursue the complaints, although it does have access to more trading information.The report examined trading of stocks, options and certificates on Deutsche Boerse AG’s Xetra Classic, Xetra Frankfurt and Eurex, according to a copy seen by Bloomberg. Together, the three platforms accounted for about 59% of Wirecard share trading in 2019, data compiled by Bloomberg shows.The regulator sees more trading data than what was included in the report, according to a spokeswoman for BaFin. It has a lower threshold for notifications on short positions and access to reports of suspicious trading activities on exchanges outside Germany, she said, declining to specify the information that led to the complaints.Wirecard collapsed in June last year after saying that 1.9 billion euros ($2.3 billion) in cash probably never existed, sparking a parliamentary inquiry into how BaFin and other authorities handled one of the country’s biggest-ever corporate scandals. At issue is why the regulator took actions that benefited the member of Germany’s benchmark DAX Index, but failed to detect the fraud after multiple warnings.Officials from BaFin are scheduled to testify to the German parliament’s investigating committee on Friday.The legal fallout is still unfolding. Former Chief Executive Officer Markus Braun has been in a jail since last year awaiting trial. The probe into short sellers by prosecutors in Munich remains open, while the case against FT journalists has since been dropped.It emerged on Wednesday that Frankfurt prosecutors visited BaFin’s offices in Bonn to follow up on criminal complaints into staff responsible for overseeing the Wirecard scandal.Joined by federal police in an unusual show of force, they submitted a letter requesting information as they look into whether to open a probe over the regulator’s handling of Wirecard and allegations it didn’t do enough to prevent insider trading among its staff.The surveillance unit at the Frankfurt exchange began its review shortly after the FT published stories critical of the company in early 2019, which whipsawed the stock.The pursuit of Wirecard critics wasn’t the only example of BaFin actions that were at odds with other authorities. The regulator, whose president announced his resignation last month, banned short selling of Wirecard shares in February 2019, even though the Bundesbank had said it wasn’t needed for financial stability. BaFin said it was aimed at preserving “market integrity.”Internal documents of the German parliament’s investigation committee also show that BaFin inquired about a possible trading ban for Wirecard shares in February 2019, but was advised against such a move by the Frankfurt stock exchange’s surveillance unit.“BaFin wanted the ban on short sales no matter what,” said Danyal Bayaz, a member of the parliamentary committee from the Green party. “We think the short-sale ban was illegal. As the legal supervisor, the finance ministry bears responsibility here and should have reviewed the action and intervened.”Finance Minister Olaf Scholz, the Social Democratic party’s candidate for chancellor in September’s elections, is set to face the committee’s questions in the coming months. He’s said he will strengthen BaFin by hiring more people and create a task force for forensic probes and investigations into accounting fraud.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Economic data from France and the U.S will be in focus later today. U.S inflation figures could deliver further upside to yields later today…
The U.S. House votes Friday on a bill to give you a third payment. Could there be another?
The IRS has received approximately 21% more individual returns than the agency received last year by Feb. 7, which was 12 days into the tax season last year.
The U.S. securities regulator on Friday suspended trading in the securities of 15 companies because of "questionable trading and social media activity," the latest in a string of temporary trading halts amid volatile trading in so-called "meme stocks." The Securities and Exchange Commission acted because none of the companies have filed any information with the regulator for over a year, it said in a statement. This is the regulator's third and largest wave of suspensions in response to social media activity.
(Bloomberg) -- Ark Investment Management’s miserable week showed signs of easing on Friday, with its flagship exchange-traded fund halting a four-day slide.The ARK Innovation ETF (ticker ARKK) closed higher, after swinging between gains and losses throughout the session. It still dropped 15% this week amid a technology selloff that was triggered by rising Treasury yields, putting pressure on high-flying stocks. One of those shares is electric-car maker Tesla Inc., which remains as the ETF’s biggest holding and has faced intense volatility.The last time Ark founder Cathie Wood suffered a weekly run this bad was almost a year ago, during the worst of the Covid-fueled mayhem. Her main fund is now 11 times larger than it was then. It got close to erasing its gains for 2021 this week after soaring as much as 26% since the end of December.Assets in the ETF have slumped by $4.9 billion this week to $23.3 billion, according to data compiled by Bloomberg. The figure doesn’t include flows from Thursday, when ARKK dropped 6.4% for its worst day in almost six months. Investors pulled about $200 million from the fund in Wednesday trading. That brings total weekly outflows to $638 million, on pace to be the worst on record.“Money that is ‘easy come’ tends to be money that is ‘easy go’,” said Ben Johnson, Morningstar’s global director of ETF research. “You’re going to see similar, if not potentially greater, market impact on the way down, especially given that this is an actively managed ETF and a fully transparent one. The market is hanging on their every move, they’re watching their every move.”Bearish bets against the ETF continue to grow, with short interest now accounting for more than 4% of available shares, according to data from IHS Markit Ltd.Michael Purves, chief executive officer at Tallbacken Capital Advisors, said in a note Thursday that his firm is taking profits on ARKK puts, but “will look to re-enter a second bearish trade on a bounce.”Ark Investment slipped to the eighth place among the largest exchange-traded fund issuers in the $5.9 trillion industry, after becoming the seventh biggest earlier this month. Total ETF assets for the company are now just shy of $53 billion, down from more than $60 billion at the prior peak.Wood’s $10.6 billion ARK Genomic Revolution ETF (ARKG) lost $154 million on Wednesday, for its third straight day of outflows. At the same time, traders pulled another $48 million from ARK Next Generation Internet ETF (ARKW).“If one were still in agreement with Ark on their long-term investment thesis, a meaningful market correction might provide an opportunity to participate more,” Linda Zhang, founder of Purview Investments.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- The world’s largest Bitcoin fund is selling off faster than the cryptocurrency itself as investors rush to the exits.The $31.6 billion Grayscale Bitcoin Trust (ticker GBTC) plunged 22% this week, outpacing a 17% decline in the world’s largest cryptocurrency. That’s evaporated GBTC’s once-massive premium to the Bitcoin it holds, with the price of GBTC closing 3.8% below the value of its underlying holdings on Thursday -- a record discount, according to data compiled by Bloomberg.It’s an unusual situation for GBTC, which has persistently traded at a premium to its net asset value since the fund’s launch in 2013. That figure soared to 40% in late 2020, with investors willing to pay a markup for exposure to Bitcoin‘s dizzying rally. That avalanche of inflows swelled the number of GBTC shares outstanding to a record 692 million. However, GBTC doesn’t allow redemptions -- meaning that shares can only be created, but not destroyed. With Bitcoin’s climb now stalling, that’s created a supply and demand imbalance as participants in the trust seek to find buyers in the secondary market.“It’s more indicative of the fact that there are so many shares are available, and it indicates demand for Bitcoin at these prices is falling off,” said Bloomberg Intelligence analyst James Seyffart.Bitcoin surged to a record of over $58,000 last weekend, but has stumbled since. The cryptocurrency slipped another 0.2% on Friday, on track for its worst weekly pullback in a year. The wider Bloomberg Galaxy Crypto Index, tracking Bitcoin, Ether and three other cryptocurrencies, is down 19.7% this week.Bitcoin’s lurch lower is part of a broader risk asset stumble, as spiking Treasury yields rattle the market’s more speculative fringes. High-flying tech stocks have been hammered as investors reassess lofty valuations, with the Nasdaq 100 on track for its worst week since March.Among those hit the hardest is Cathie Wood’s lineup of Ark Investment Management ETFs. The flagship ARK Innovation ETF is on track for a fifth consecutive day of declines, and is poised to erase its year-to-date gains after a nearly 150% surge in 2020. Ark Investment is the fourth-largest holder in GBTC.Michael Sonnenshein, chief executive officer of Grayscale Investments, acknowledged the risk of GBTC’s premium disappearing while speaking in a panel for the Bloomberg Crypto Summit on Thursday.“It’s certainly a risk, no question about it, but ultimately price discovery in GBTC every day is driven entirely by market forces,” Sonnenshein said.A host of new entrants could also be challenging GBTC’s command of the competitive landscape. The Bitwise 10 Crypto Index Fund, the Osprey Bitcoin Trust and the SkyBridge Bitcoin Fund LP have all launched within the past three months. Meanwhile, two Bitcoin ETFs -- a structure yet to be approved by U.S. regulators -- began trading this month in Canada.“Since the beginning of the year, we’ve seen the launch of multiple competing products,” said Nate Geraci, president of the ETF Store, an advisory firm. “The unpleasant truth for GBTC investors is that competition erodes demand for the product, which can lead to a collapsing premium or even a discount.”(Updates prices throughout.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Here's what still has to happen following the big vote in the U.S. House.
Borrowers are backing off, mortgage demand is falling — but what if rates go even higher?
(Bloomberg) -- Bitcoin’s rally hit a speed bump as the world’s largest cryptocurrency witnessed its worst weekly decline in almost a year amid wider losses in risk assets.The digital token slumped 20% this week, the most since the pandemic-fueled selloff last March. The wider Bloomberg Galaxy Crypto Index, tracking Bitcoin, Ether and three other cryptocurrencies, was down 23% for the same period. Bitcoin fell 5% to trade at $45,672 as of 5:00 p.m. in New York, according to consolidated pricing compiled by Bloomberg.“It is a market that was ridiculously overbought and will probably be so once again in the not-too-distant future,” Craig Erlam, a senior market analyst at OANDA Europe, said in a note Friday.The rough patch for Bitcoin comes amid increased volatility in global markets, as a surge in bond yields heralds growing expectations that growth and inflation are moving higher and forcing traders to reevaluate their positions across multiple asset classes. The tech-heavy Nasdaq 100 dropped the most since October this week as stocks like Tesla Inc. and Peloton Interactive Inc. slumped.“Risk-on assets are taking a hit at the moment -- we’re seeing stocks slide and crypto is following,” said Vijay Ayyar, head of Asia Pacific for cryptocurrency exchange Luno in Singapore. “The dollar is strengthening, which is a good indication to expect a slide in Bitcoin and crypto.”Bitcoin’s weakness in the face of market gyrations raises questions about its efficacy as a store of value and hedge against inflation, a key argument among proponents of its stunning rally over the past year. Detractors have maintained the digital asset’s surge is a speculative bubble and it’s destined for a repeat of the 2017 boom and bust.In a Flash, U.S. Yields Hit 1.6%, Wreaking Havoc Across MarketsWhile Bitcoin is often touted as the new “digital gold,” the yellow metal is winning out at the moment with spot gold trading at $1,734 per ounce, down about 3% for the week. The Bloomberg Dollar Spot Index is up 0.9% in the same period, its strongest gain since October.Heavy selling in the Grayscale Bitcoin Trust, the world’s largest such fund, as well as the expiry of Bitcoin options are also contributing to the volatility, Ayyar said. The trust has slumped 24% this week, with losses racing past its underlying asset, as a once-massive price premium over Bitcoin turned negative as investors cashed in on those gains, he said.Prominent figures across the financial world have also recently weighed in on Bitcoin.Tesla chief executive Elon Musk said the prices “seem high” on the weekend, seen by some as an initial catalyst for the week’s selloff. Ark Investment Management’s Cathie Wood later said in a Bloomberg interview she was “very positive on Bitcoin” but didn’t disclose whether Ark had made a purchase.Earlier this week, Microsoft Corp. co-founder Bill Gates said in a Bloomberg Television interview he wasn’t a fan of Bitcoin, while Treasury Secretary Janet Yellen said the token was an “extremely inefficient way of conducting transactions.”(Updates prices, chart)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
(Bloomberg) -- Short bets are a tough sell.The Reddit-inspired short squeeze in GameStop Corp. and other stocks has spurred billions of dollars in losses for short sellers in recent weeks, prompting a rethink of the practice among some investors. Last Friday, Ken Griffin of hedge-fund Citadel declared after Congressional hearings the turmoil will diminish short selling for the foreseeable future.But the environment for short selling was already among the worst in decades even before the GameStop blowup. Even with this week’s sharp selloff, broad gains in equities in the past year have made it difficult to bet against almost any one stock.The most-shorted stocks have gained 112% since last March while the least-shorted names rose 40%, according to a Scotiabank analysis. In January, when GameStop gyrations gripped markets, a record was reached between the most- and least-expensive stocks to borrow with the most expensive outperforming the least by 29%, according to IHS Markit.“I think it would be fair to characterize the time from the late-March 2020 until now as being the worst period on record for short interest factors,” said Sam Pierson, director of Securities Finance at IHS Markit.It’s not unusual for the most-shorted stocks to outperform gains in the least-shorted companies when coming out of a bear market. But what is surprising this time is the extent of the current outperformance and the pain it has caused, even before the start of 2021, Scotiabank analyst Jean-Michel Gauthier said.“Typically when you see the high-profile shorts throw in the towel, it is a good time to be hunting. But in this environment it still seems too early,” said Adam Eagleston, chief investment officer of Formidable Asset Management, which manages over $600 million in assets.To be sure, short selling positions haven’t completely disappeared.Small caps are one example of where short bets by hedge funds have widened, according to net contracts data last week from the Commodity Futures Trading Commission. But short interest as a percentage of float for the Russell 3000 has continued to plunge, according to financial analytics firm S3 Partners.Russell 3000 short interest stands at 5.6%, which is the lowest in at least two years as funds continue to trim their positions. That’s down from at least a two-year high of 7.5% a month ago.Read more: Hedge Funds Reverse Course to Go Short Small Caps: Taking StockFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Tax refunds are flowing into pocketbooks — and the overall economy — much slower this season after a late start.
(Bloomberg) -- Shares of GameStop Corp. doubled yesterday and jumped another 19% today. Options traders think the stock can do much better than that.The most-active option traded on the stock Thursday was a contract betting that GameStop shares would spike to $800 on Friday. Some 52,000 contracts changed hands during the session betting on this one-day gain of 636%For other options traders, it was a question of when GameStop would hit the $800 mark, not if. The seventh and eighth most-active contracts were call options wagering that the stock would reach $800 by next Friday or in three weeks. It’s hard to say whether the contracts were mainly bought or sold, two traders said.“It’s speculation gone wild, pure and simple,” said Steve Sosnick, chief strategist at Interactive Brokers LLC. “It is Exhibit A in the nuttiness that is associated with GameStop.”GameStop’s Reddit-driven roller-coaster ride that roiled markets last month is continuing this week, with shares more than doubling in the final 90 minutes of trading on Wednesday and rising as much as 101% on an intraday level on Tuesday. The rally came as popular tech names from Tesla Inc. to Zoom Video Communications Inc. were battered after U.S. 10-year Treasury yields spiked to 1.6%.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
CNBC host Jim Cramer has been vocal about the rise of SPACs. Cramer has criticized the large number of SPACs and recently went after celebrity SPACs. The host has featured interviews with executives from some of the companies going public via the SPAC route. On Wednesday’s “Mad Money” show, Cramer recommended to that they watch for some high-quality SPACs that are trading down with the entire SPAC industry. “The next time these higher-quality SPACs get hit ... you need to be ready to buy,” Cramer said. “I’m saying you should watch them on the way down because they do break to lower levels.” Here are the 10 SPACs to die for, according to Jim Cramer: MP Materials: Rare earth mining company MP Materials (NYSE: MP) has been a favorite of Cramer's. “It is high quality — I want you ready for the next pullback,” he said. The company could benefit from the push by China to ban exports of rare earth minerals to the U.S. For more on the opportunity MP Materials has, watch Benzinga’s interview with CEO James Litinsky here. Star Peak Energy: Cramer is a fan of Star Peak Energy Transition Corp (NYSE: STPK), a SPAC taking Stem public. “I think you’re going to get an even better buying opportunity once the deal closes.” Cramer said he would be a buyer of the SPAC under $30. Porch Group: Software company Porch Group (NASDAQ: PRCH) helps power the home services market. Benchmark recently initiated coverage with a Buy rating and $24 price target. “I actually think you can start buying Porch right here and maybe wait for a dip to buy some more,” Cramer said. Utz Brands: Salty snacks company Utz Brands Inc (NYSE: UTZ) completed its SPAC merger in August 2020. The company hasn’t received the attention that some electric vehicle SPACs and other industries have commanded. Shares have seen a steady rise in their price going from around $14 at the time of the merger close to around $25 today. “You’re not getting much of an entry point, but if it pulls back to closer to $20, you need to be ready to pull the trigger on Utz,” Cramer said. DraftKings: Online sports betting operator DraftKings Inc (NASDAQ: DKNG) is a favorite of Cramer’s. The CNBC host did clarify that he has a programming deal with the company, saying to take his advice “with a grain of salt.” The company is generating real revenue and growing like a weed, he said. Related Link: 10 Top SPAC Picks For Investors To Consider In 2021 Social Capital Hedosophia Holdings Corp V: The fifth SPAC under the IPOA to IPOZ umbrella from Chamath Palihapitiya is a favorite of Cramer’s due to the merger partner SoFi. Cramer called SoFi “the personalized online banking play that’s disrupted the entire industry.” The company is going public with Social Capital Hedosophia Holdings Corp V (NASDAQ: IPOE). Vertiv: Hardware and software company Vertiv Holdings (NYSE: VRT) is another company that went public via SPAC merger that Cramer likes. “You can put on a small position here, then hope it comes down to buy more,” Cramer said. The CNBC host said the company recently reported a strong quarter. Open Lending: Automated lending company Open Lending (NASDAQ: LPRO) has been a strong performing stock, with shares going from $13 to $40 over the last six months. “The stock is not cheap, but if Open Lending hits the numbers well this thing’s going to look like a steal,” Cramer said. Skillz: Mobile gaming company Skillz Inc (NASDAQ: SKLZ) helps companies monetize their games through offering person vs. person wagering and tournaments. Cramer said Skillz has a great story, and he would be a buyer if it falls below $30. Cramer also noted that Cathie Wood added Skillz to the Ark Funds ETFs. AppHarvest: Indoor agriculture company Appharvest (NASDAQ: APPH) wants to operate the world’s largest indoor and controlled farming portfolio to help Americans have access to fresh, affordable, healthy fruits and vegetables. “The stock’s down 22% from its highs, looking more enticing currently at $33,” Cramer said. “If it falls to the high $20s, nibble.” Photo by Tulane Public Relations via Wikimedia. See more from BenzingaClick here for options trades from Benzinga5 Things You Might Not Know About Churchill Capital's Michael KleinPokemon Announces Highly Anticipated Diamond And Pearl Remakes: Why Investors Should Watch Nintendo Stock© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
GameStop Corp. (NYSE: GME) shares closed at $101.74 Friday after the stock surged from under $45 on Wednesday to as high as $184.68 on Thursday. Some traders may see the extreme volatility in GameStop as chaotic and unbelievable, but former hedge fund manager Whitney Tilson said Friday that GameStop and other meme stocks like AMC Entertainment Holdings Inc (NYSE: AMC) and Koss Corporation (NASDAQ: KOSS) have demonstrated textbook dead cat bounces this week. A dead cat bounce is a large, short-lived recovery in a stock that has experienced an extreme decline. Unfortunately, dead cat bounces tend to be bull traps for traders, tricking some buyers into prematurely believing the bottom is in. Related Link: Kevin O'Leary Of 'Shark Tank,' Benzinga CEO Jason Raznick Talk GameStop, Bitcoin And Economic Recovery Trades “Mark my words: These three stocks will never again reach the highs they hit yesterday and will continue their collapses back to their fair values, which are much lower than today's levels,” Tilson wrote in his daily newsletter on Friday morning. The Law Of Twos And Threes: Tilson said the recent trading action in GameStop, AMC, Koss and other stocks reminds him of a rule of thumb a mentor once called “law of twos and threes. “What this means, he explained, is that every stock, on its way to zero, doubles three times and triples twice!” Tilson said. While he doesn’t believe GameStop, AMC and Koss are worth zero, Tilson said they are only worth a fraction of what they are priced at today. Tilson said the trading action in GameStop and other stocks ultimately results in retail traders losing money and faith in the market, which is bad news for every investor. “What's going on sickens me — it's high time that regulators cracked down on all the things that have turned our markets into casinos,” Tilson wrote. Benzinga’s Take: Love it or hate it, there’s no question the retail short squeeze pump-and-dump strategy has worked like a charm with GameStop. Successfully timing the entry and exit points in highly volatile short squeezes can be extremely difficult, even for professional traders. Latest Ratings for GME DateFirmActionFromTo Jan 2021B of A SecuritiesMaintainsUnderperform Jan 2021Telsey Advisory GroupDowngradesOutperformUnderperform Oct 2020JefferiesDowngradesBuyHold View More Analyst Ratings for GME View the Latest Analyst Ratings See more from BenzingaClick here for options trades from BenzingaKevin O'Leary Of 'Shark Tank,' Benzinga CEO Jason Raznick Talk GameStop, Bitcoin And Economic Recovery TradesGameStop Drama Continues: Soaring Stock Halted, Cramer, Citron Weigh In© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
CNBC host Jim Cramer said Thursday that GameStop Corporation (NYSE: GME) could justify its share price by turning into a cryptocurrency play. What Happened: The “Mad Money” host made references to other companies like Paypal Holdings Inc (NASDAQ: PYPL) and Nvidia Corporation (NASDAQ: NVDA), both of which are linked in some way or the other to cryptocurrency at the present. “If GameStop were to turn itself into a 5,000-store introduction to crypto, make it so that they sell $1 billion worth of stock ... and buy crypto with it, and then make it so it’s an international gaming place where you win bitcoin, I think you can justify the stock price,” theorized Cramer. “I have not been able to come up with anything else, but this works. And it doesn’t have to be bitcoin. We can make it crypto.” See also: How to Buy GameStop (GME) Stock Cramer said if GameStop turns itself into a “crypto information place” and has worldwide games with no latency it would add to the credibility of GameStop investor and Chewy Inc. (NYSE: CHWY) co-founder Ryan Cohen. The former hedge fund manager also pointed to the upcoming resignation of GameStop CFO Jim Bell and said, “CFOs, they tend not to have bitcoin on their balance sheet. Perhaps Jim Bell, that’s what he didn’t want.” Cramer called Cohen a “big thinker” and said “I have a feeling that this is the way to get this stock higher. I can’t come up with another way.” Why It Matters: GameStop, AMC Entertainment Holdings Inc (NYSE: AMC), BlackBerry Ltd (NYSE: BB), and Nokia Oyj (NYSE: NOK) shares were buoyed in a short squeeze carried out by Reddit forum r/WallStreetBets. A notable poster on the forum — “Deep F---ing Value” — who has been credited by forum members for pointing out the short squeeze opportunity told U.S. lawmakers that he likes GameStop stock. “As far as I can tell, the market remains oblivious to GameStop’s unique opportunity within the gaming industry,” said the poster whose real name is Keith Partick Gill. On Wednesday, Cramer called the over 103% rise in the shares of GameStop “a mockery,” and questioned, “Where is the government?” Alma Angotti, a former Securities and Exchange Commission enforcement attorney said that heightened interest from regulatory bodies could be expected. “I think both Congress and the SEC will be studying that balance between orderly markets and letting people invest what they want to invest for whatever reasons they want to invest even if it doesn’t make sense to us,” CNBC reported. Price Action: GameStop shares closed nearly 18.6% higher at $108.73 on Thursday and fell 2.51% to $106 in the after-hours session. For news coverage in Italian or Spanish, check out Benzinga Italia and Benzinga España. Photo courtesy: EPIC via Wikimedia See more from BenzingaClick here for options trades from BenzingaTesla Stock Performance And WallStreetBets Mentions Have A 'Real' Connection: BarclaysWhy AMC Shares Spiked 20% Today© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
The $20 trillion Treasury bond market is getting jittery. The question is what is the Federal Reserve going to do about it? The US Treasury’s auctions of five- and seven-year securities were poorly received by investors.