Dennis Diatel Photography/iStock Editorial via Getty Images Investment Thesis It's been hard to find reasons to buy GameStop ( GME ) in recent years. The turnaround story began as a meme, turned into a cash-accumulation strategy, then a Bitcoin treasury play, and now a potential hostile takeover of eBay ( EBAY ). However, this chaos appears to present a buying opportunity while many investors are ...
Dennis Diatel Photography/iStock Editorial via Getty Images Investment Thesis It's been hard to find reasons to buy GameStop ( GME ) in recent years. The turnaround story began as a meme, turned into a cash-accumulation strategy, then a Bitcoin treasury play, and now a potential hostile takeover of eBay ( EBAY ). However, this chaos appears to present a buying opportunity while many investors are still trying to determine if Ryan Cohen is serious about pursuing eBay. The Q1 financials themselves, which were overshadowed by acquisition news, are beginning to present themselves as very attractive. During Q1, GameStop reported net sales of $835.3 million, an increase of 14% YoY, with record Q1 operating income of $143.3 million. In addition, as of the end of Q1, the company possessed $8.4 billion in cash and marketable securities compared to a market capitalization of ~$9.7 billion. This means investors can purchase all of GameStop’s retail operations along with the company's collectibles division, both now producing genuine operating income, for less than half of what the company’s balance sheet is valued at. The results aren't bad for a supposedly dying business and demonstrate management's ability to turn around businesses, something that could be applied to other potential acquisitions. With these cheap multiples and potential for M&A, I'm rating GameStop a Strong Buy with a 12-month price target of $27.68. The Balance Sheet Story The strongest reason why GameStop appears attractive today is simple math, with $8.4 billion in cash and equivalents, translating into a value of ~$18.75 per share with ~448 million shares outstanding . For every share bought at the current share price of ~$22, investors get roughly $3.25 of value from the operating business, collectibles segment, and acquisition optionality. Author GameStop has consistently built up its cash reserves rapidly, with $2 billion in cash added YoY. The increase in liquidity was largely due to share sales, con...
U.K. pharmaceutical giant GSK on Tuesday struck a $10.6 billion deal to buy U.S.-listed biotech company Nuvalent, its biggest acquisition in eight years as it seeks to bolster the cancer portfolio it had previously trimmed.
U.K. pharmaceutical giant GSK on Tuesday struck a $10.6 billion deal to buy U.S.-listed biotech company Nuvalent, its biggest acquisition in eight years as it seeks to bolster the cancer portfolio it had previously trimmed.
A government investigation into an alleged indecent assault of a four-year-old kindergarten pupil at an international school in Hong Kong’s Stanley has concluded that the claim of child maltreatment was “not established”, drawing the weeks-long probe to a close. The International Montessori School (IMS) welcomed the Social Welfare Department’s conclusion, expressing “immense relief” after going th...
A government investigation into an alleged indecent assault of a four-year-old kindergarten pupil at an international school in Hong Kong’s Stanley has concluded that the claim of child maltreatment was “not established”, drawing the weeks-long probe to a close. The International Montessori School (IMS) welcomed the Social Welfare Department’s conclusion, expressing “immense relief” after going through “a very difficult time” alongside the entire community. In a letter to parents, Timothy Veale,...
If you're getting close to retirement and don't have much savings, there's a harsh reality you might soon need to face: Social Security could end up being your main source of income. And if that's the case, it's important to get as much money out of the program as you can. But there are certain things you might do, or not do, that could cause your Social Security benefits to shrink. Here are a few...
If you're getting close to retirement and don't have much savings, there's a harsh reality you might soon need to face: Social Security could end up being your main source of income. And if that's the case, it's important to get as much money out of the program as you can. But there are certain things you might do, or not do, that could cause your Social Security benefits to shrink. Here are a few scenarios where your checks could end up being smaller than you want them to be. Image source: Getty Images. Continue reading
RerF/iStock via Getty Images Investment Approach Fidelity® Select Technology Portfolio is a sector-based, equity-focused strategy that seeks to outperform its benchmark through active management. We believe the value of technology stocks is in large part determined by the companies' future potential to generate earnings and cash flow. Our investment framework also focuses on identifying themes tha...
RerF/iStock via Getty Images Investment Approach Fidelity® Select Technology Portfolio is a sector-based, equity-focused strategy that seeks to outperform its benchmark through active management. We believe the value of technology stocks is in large part determined by the companies' future potential to generate earnings and cash flow. Our investment framework also focuses on identifying themes that impact the largest end markets, determining potential winners/losers, and how certain companies that are technology disruptors can impact incumbents. The technology sector is a very specialized part of the market, and our experience allows for proficiency in specific domains, aiding in recognizing investment opportunities when they arise. Through bottom-up research and by leveraging Fidelity's vast expertise - in addition to insights from industry experts, technologists, suppliers and competitors - we develop a differentiated view on the fundamentals in seeking to identify companies with compelling risk/reward profiles. Sector strategies could be used by investors as alternatives to individual stocks for either tactical or strategic allocation purposes. Market Review For the first quarter of 2026, the information technology sector returned -7.28%, according to the MSCI U.S. IMI Information Technology 25/50 Index, versus -4.33% for the broad-based S&P 500 index. Growth areas of the market, including technology, lagged value as concern about the viability of artificial intelligence-related investments began to surface and conflict in the Middle East took center stage in late February, sapping a stock market that entered 2026 with positive momentum. The Iran war sent a shockwave through oil markets, with the potential to dampen growth and stoke inflation. As a result, information technology finished with the ninth-best performance among the 11 sectors in the bellwether S&P 500® index. Within the MSCI sector index, the semiconductor materials & equipment group (+31%) stood ou...
European stocks fell after erasing earlier gains late in the trading session, tracking losses in US peers, with noticeable sector rotation. The Stoxx Europe 600 Index retreated 0.5% by the close after gaining as much as 0.9%. There was profit taking on this year’s winning thematics such as energy, mining, telecoms and technology stocks. By contrast, chemicals, food and retail stocks outperformed. ...
European stocks fell after erasing earlier gains late in the trading session, tracking losses in US peers, with noticeable sector rotation. The Stoxx Europe 600 Index retreated 0.5% by the close after gaining as much as 0.9%. There was profit taking on this year’s winning thematics such as energy, mining, telecoms and technology stocks. By contrast, chemicals, food and retail stocks outperformed. In the telecom sector, Ericsson AB and Nokia Oyj tumbled 6.3% and 7%, respectively, on reports of possible competition from Nvidia Corp. on telecom chips. In other stock moves, Unipol Assicurazioni SpA shares advanced 4.7% on expectations the insurer would acquire the Banca Monte dei Paschi di Siena SpA brand and certain assets if Intesa Sanpaolo SpA’s offer for the lender is successful. A day before Intesa’s offer, Banco BPM SpA already pitched a merger of equals with Paschi, without giving a price. Paschi gained 2.6% on Tuesday, with Intesa up 0.9% and Banco BPM rising 1.5%. Read more: Intesa’s Messina Braces for Bidding War Over Monte Paschi The healthcare sector was also in focus. GSK Plc retreated 0.5% after the pharmaceutical firm agreed to buy Nuvalent Inc. in a deal valued at $10.6 billion. AstraZeneca Plc fell 1.2% after its experimental obesity pill delivered 11.8% weight loss in a mid-stage trial. The Middle East conflict remains top of mind, with Brent crude falling to about $90 a barrel after US President Donald Trump renewed his claims of momentum toward ending the war with Iran. Any progress in negotiations will be a positive for Europe ahead of the European Central Bank meeting on Thursday, where policy makers are expected to hike interest rates. “European equity markets benefit from improving risk sentiment globally in addition to M&A talk in the Italian banking sector,” said Wolf Von Rotberg , equity strategist at Bank J Safra Sarasin. “This comes after a period of sustained underperformance in financials over recent months.” For more on equity markets: Sh...