Robinhood Stock Rises on Launch of Credit Card With 3% Cash Back

23 minutes ago

Shares in Robinhood Markets (HOOD) rose Wednesday morning after the online trading app said it was launching a credit card, as it moves to become a one-stop shop for financial services.

Robinhood said the card is available exclusively to its premier Robinhood Gold customers and comes after it bought X1, a credit-card startup, last year.

Chief Executive Officer Vlad Tenev said the 3% cash back is well above industry norms and would appeal to the online trading app’s typical customers in their 30s, college students, or recent graduates in their first jobs—as well as draw new people to its platform.

Robinhood shares were up 3.4% at $19.94 Wednesday morning. They have gained about 60% year to date.

–Fatima Attarwala

GameStop Stock Plunges After Earnings Fall Short of Expectations

2 hr 9 min ago

Shares in brick-and-mortar video game retailer and legacy meme stock GameStop (GME) plunged Wednesday after the company disclosed quarterly earnings that fell considerably short of Wall Street’s expectations amid an ongoing shift to digital downloads and softening consumer spending.

In the three-month period ending Feb. 3, the Grapevine, Texas-based company posted adjusted earnings of 22 cents per share, compared to analysts’ estimates of 30 cents a share. Revenue of $1.79 billion in the period fell from $2.23 billion a year earlier and missed the $2.05 billion consensus view.

GameStop’s share price has remained entrenched within a multi-year downtrend, pressured by a long-term trendline connecting several prominent countertrend swing highs.

Amid the earnings-driven sell-off, investors should monitor how the stock’s price responds to the 2023 low at $11.83. A reversal at this level could mark the beginning of a potential double bottom pattern, while a failure to hold this important chart level could act as a catalyst for further declines.

Gamestop shares were down 14.8% at $13.20 in early trading on Wednesday.

–Timothy Smith

Stocks Making the Biggest Moves Premarket

3 hr 7 min ago

Gains:

• Trump Media & Technology Group (DJT): Shares of the Truth Social parent company jumped 16%, adding to yesterday’s 16% gain on the stock’s first day of trading. 
• Robinhood Markets Inc. (HOOD): Shares of the digital trading platform and brokerage gained more than 7% after it said it planned to launch a credit card for premium Robinhood Gold customers. 
• Merck & Co. Inc. (MRK): Shares of the pharmaceutical giant rose more than 5% after the FDA approved its new drug for the treatment of pulmonary arterial hypertension. 
• Moderna Inc. (MRNA): Shares of the vaccine maker rose more than 3% after it secured $750 million in funding from private equity firm Blackstone to develop a flu vaccine. 

Losses:

• GameStop Corp. (GME): Shares of the video game retailer fell more than 17% after it reported lower-than-expected quarterly earnings of 22 cents per share. 
• Nio Inc. (NIO): American depositary receipts of the Chinese electric vehicle maker fell 3% after it lowered its forecast for first-quarter deliveries amid a slowdown in demand and price war in the world’s largest EV market. 

Stock Futures Rise After Two Losing Days

3 hr 49 min ago

Futures contracts connected to the Dow Jones Industrial Average were up 0.4% in premarket trading on Wednesday.

S&P 500 futures were also up 0.4%.

The Nasdaq 100 also traded 0.4% higher about an hour and a half before markets opened.