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  • Stonks: $GME earnings, Apple AI?, TSMC pricing, and US payroll numbers

Stonks: $GME earnings, Apple AI?, TSMC pricing, and US payroll numbers

Author

Michael Luo
June 07, 2024

Here’s the latest “under the radar” stock news from Reddit in the last 24 hours that you don’t want to miss, as picked by Fluid Bot’s AI.

🚀 And remember, sign up for our free Discord bot to get news & sentiment as soon as it happens!

$GME update:

  • $GME is down over 35% today

  • Why? Gamestop announced an “emergency earnings” that didn’t hit expectations. On top of that, they announced a 75 million share stock sale.

💸 GameStop’s stock falls following downbeat earnings and plan to sell more shares

  • Reddit sentiment: mixed/negative (mix of analytical discussion, concern, and some appreciation for logical reasoning, but overall sentiment leans negative due to frustration with timing and decisions about the share offering).

  • GameStop reported a sharp decline in Q1 revenue, generating $882 million, down from $1.24 billion the previous year.

  • The company's net loss narrowed to $32.3 million (11 cents per share) from $50.5 million (17 cents per share) a year ago.

  • GameStop plans to sell up to 75 million shares, having already sold 45 million shares for $933 million in gross proceeds.

  • Meme trader Keith Gill, aka Roaring Kitty, revealed a sizable GameStop position and announced his first YouTube livestream in three years.

🤑 AAPL and WWDC on Monday: Expectations for AI and Stock Price to Hit $200+? 

  • Reddit sentiment: mixed (some optimistic about Apple's potential AI announcements, some skeptical about the company's innovation and the stock hitting $200)

  • Apple's Worldwide Developers Conference (WWDC) is coming up, potential impact on $AAPL stock

  • Speculation about AI announcements, new features, and updates to Siri

  • Focus on developer tools and APIs, short-term influence on stock price

  • Discussion of financial impact, market response to announcements, potential for $AAPL to reach $200 in the near future

📈 TSMC ponders boosting AI chip production prices for Nvidia: Morgan Stanley 

  • Reddit sentiment: mixed (positive views on TSMC's strategy to benefit both companies, concerns about potential monopolistic practices involving NVIDIA and TSMC)

  • Taiwan Semiconductor Manufacturing Company considering increasing production fees for Nvidia

  • Nvidia CEO Jensen Huang agrees with potential fee increase

  • Nvidia is TSMC’s key customer, accounting for 10% of revenue predicted for 2024

  • Other key AI semi customers may follow if Nvidia accepts price hike

  • TSMC hiked prices by 10% in 2022 and 5% in 2023, potential 5% increase for 2025

  • Other major TSMC customers include Apple (AAPL), AMD, Broadcom (AVGO), Qualcomm (QCOM), and MediaTek (OTCPK:2454-TK)

  • TSMC expected to be long-term winner in AI semis

  • Morgan Stanley recommends TSMC stock, up 55% year to date

👩‍✈️ US Payrolls Rose by 272,000 in May, Smashing Estimates 

  • Reddit sentiment: mixed/negative (concerns about the rise in unemployment despite the increase in payrolls, potential inaccuracies in the reports)

  • US payrolls rose by 272,000, exceeding estimates

  • Job gains were driven by health and education, leisure, hospitality, and government sectors

  • Unemployment rate unexpectedly rose to 4%, ending a long period of sub-4% joblessness

  • Average hourly earnings increased by 0.4% in May, potentially adding to inflationary pressures

  • Treasury yields surged after the release, with stocks opening lower

  • The May job report pushed back expectations for a Fed rate cut, with no July interest rate cut likely

  • The strong job gains are not in line with recent weaker economic data, creating potential risks for stocks and bonds