Markets Defused gives an easy-to-understand and straightforward recap of the day’s most engaging business and stock market news.
- 16 stocks for UEFA Euro 24
- GameStop down as Gill shows bigger stake
- Tesla relief after shareholders back Musk
16 stocks that could see a Euro 24 boost
Tonight sees the start of a month-long festival of football as the UEFA Euro 2024 tournament kicks off – with Germany facing Scotland in the opening game.
Not only will it be a welcome distraction from the UK’s general election campaign, for some sectors, it promises to be a real economic boon.
So which stocks can benefit?
Making the tournament squad would be: ITV PLC (LSE:ITV), JD Sports Fashion PLC (LSE:JD.), Frasers Group PLC (LSE:FRAS), Tesco PLC (LSE:TSCO), J Sainsbury PLC (LSE:SBRY), Entain PLC (LSE:ENT), Flutter Entertainment PLC (LSE:FLTR), easyJet PLC (LSE:EZJ), Ryanair Holdings PLC (LSE:RYA), International Consolidated Airlines Group SA (LSE:IAG), Mitchells & Butlers PLC (LSE:MAB), Fuller Smith & Turner PLC (AIM:FSTA), JD Wetherspoon PLC (LSE:JDW), Diageo PLC (LSE:DGE), Heineken N.V. (EURONEXT:HEIA), Anheuser-Busch InBev (NYSE:BUD).
GameStop shares ending the week in reverse gear
GameStop Corp (NYSE:GME) share price could not be coaxed higher at the tail-end of the week, despite the latest Reddit (NYSE:RDDT) update from Keith Gill – aka ‘Roaring Kitty’, aka ‘DeepFuckingValue’.
Gill increased his shareholding in GameStop to 9 million shares, according to a screenshot shared via a Reddit (NYSE:RDDT) post last night.
Also on Thursday, GameStop shares rose by 14% and the company’s AGM was delayed amid “unprecedented demand” from shareholders wishing to attend. It will now take place on Monday.
Gill is also understood to have taken a significant option position in GameStop, also revealed by himself on Reddit earlier this month. According to a screenshot, he had 120,000 call options due for expiry next Thursday.
It continues to be a volatile time in the market for GameStop, which this week closed out a $2 billion ‘at the market’ share sale to investors – in which it offloaded 75 million new shares.
On Friday, GameStop stock was down $1.36 or 4.67% changing hands at $27.76.
Tesla relief after majority of shareholders backed Musk
Tesla Inc (NASDAQ:TSLA) shares traded on the back foot, down 1.75% to $179.28, on a quieter day after last night's AGM excitement.
At the meeting, it was confirmed that shareholders voted in favour of reinstating Elon Musk’s $56 billion pay package – with 72% of votes cast in favour.
At the same time, shareholders approved Tesla’s proposed relocation from Delaware to Texas.
“… hot damn, I love you guys,” was the message from Musk at the AGM, whilst Tesla chair Robyn Denholm described it as “a matter of fundamental fairness and respect”.
“No other shareholder base understands the company as you do. You are the owners of the company,” she told shareholders.
Daniel Ives, analyst at West Coast stockbroker Wedbush, echoed these comments as he reacted to the vote and looked ahead to the future for Tesla.
“Tesla is Musk and Musk is Tesla....shareholders spoke loudly,” Ives said in a note.
He added: “In a nutshell, if this proposal went south a lot of bad things and scenarios could have happened including Musk beginning a path to not being CEO of Tesla.
“Instead it's roses and rainbows today in Austin although demand challenges remain and this is pivotal period for Tesla and Musk to navigate this turbulent period to see improved demand, FSD success, and new model rollouts over the coming year.”
According to Ives, the resolution removes a $20-$25 overhang on the stock, which the broker reckons has weighed on shares.
Wedbush, which has an ‘outperform’ rating for Tesla, now expects Musk to be incentivised to “resolve the AI threat saga the last few months”, and also focus on the advancement toward ‘full self-driving’ (FSD).
“Our bull case is now $350 heading into the next 12 to 18 months as we believe the next chapter in the Tesla growth story around autonomous and FSD is now on the near-term horizon set to take Tesla's valuation to north of $1 trillion in 2025 in our view.”