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GameStop stock soars, Tilray stock climbs on cannabis M&A, Netflix to crack down on password sharing – Yahoo Finance

Yahoo Finance Live looks at several of today’s trending stock tickers.

Video Transcript

Welcome back. It’s time now for our Triple Play, three stocks we’re keeping an eye on this afternoon. I’ll kick things off today with GameStop. It’s been back in the news since its latest earnings report last week. And today those shares are getting yet another bump higher after its chairman, Ryan Cohen, disclosed he bought another 100,000 shares in the company via his firm RC Ventures.

Now, Cohen now has just over 9 million shares in total for about 11.9% stake. But, guys, I do think this is interesting, definitely being seen here as a vote of confidence after GameStop’s mixed earnings results last week, and so far pretty vague plan in terms of its launch of an NFT marketplace by the end of the second quarter. Cohen, just to give a little bit of context here, had joined the board of GameStop earlier last year. He’s maintained a relatively low profile since then, hasn’t necessarily been saying too much about the company’s strategic moves forward, about the direction and move into NFTs, or the company’s partnership now with the gaming startup Immutable X.

But perhaps now this is showing that Cohen thinks there is upside potential here for the retailer. He also did say on Twitter after this purchase, quote, “I put my money where my mouth is.” So there you have it, I guess.

I think it’s interesting, a lot of people were wondering what was going to happen to a lot of these meme stocks and how creative they would have to be to stay relevant once they got some of that momentum from some of these Reddit investors. So it’s very interesting to see they’re moving into NFTs, because, obviously, that’s a space that people are very divided about the value that they see in NFTs. But it just goes to show that they’re still willing to take some risks and try and stay relevant to keep the business afloat. So it’ll be interesting to see how these partnerships pan out.

So I’m going to shift gears here now and go to my pick of the day, which is ticker symbol TLRY, which is Tilray. Now, this is one of the largest providers of medical cannabis brands to patients, doctors, hospitals around the world, as well as state-run administrators. Now, the stock is up about 0.6% for the day. And it was rallying. It continued its gains from Tuesday’s extended trading as a lot of this deal making picks up in the cannabis industry.

It’s still off, though, today, trading near its 52-week low. But we did see a large rise in some of these cannabis companies as we’re seeing a lot more consolidation in this space. And in terms of deals, we also saw that they agreed to acquire more than $211 million worth of convertible notes issued by HEXO. So again, trying to stay relevant, trying to adapt, even if that means taking on some of your rivals.

Yeah, the space really could use some good news from Washington, which there has been none out of the Biden administration or some out of Congress and related to SAFE Banking legislation. Again, no progress on that either.

My play is NFLX, or Netflix. The streaming giant has news today that they will test down a new fee for sharing your password. Now, they’re trying this in Chile, Costa Rica, and Peru, 3 bucks a month to share your password with someone outside your household. No word if they’ll try this in the United States or Canada, but it’s said to generate some $1.6 billion in added revenue.

Now, social media was quick to point out a 2017 tweet from the official Netflix account that said “sharing is loving.” A bit of irony coming back on them. But we shall see how they distinguish between added family members who are traveling and actually sharing your password and if people would acknowledge doing such.

Netflix also rolling out a Jeff Foxworthy comedy special, his first in 24 years. I’m not sure anyone remembers the Jeff Foxworthy comedy “You Might Be a Redneck,” but Twitter largely panned it. I do think there is certainly an audience for that if he’s not afraid of criticism and of cancel culture. I think that type of comedy has come back. As for the stock, down $6.55, way down from a 52-week high of more than $700 per share. Do either of you even remember Jeff Foxworthy or am I just the old guy here?

Can’t say I remember that one, Dave. But going back to your comment on Netflix potentially cracking down here, rolling out a fee for password sharing, I do think this is going to be an interesting one to watch. And to your point about just the share price move that we’ve been seeing, this really incredible fall from its highs, I think this is really showing here that Netflix is trying to move in the direction of monetization from any form that it can actually get it from.

And remember, just a couple of weeks ago, its CFO, Spencer Neumann, had said, “never say never” when it comes to actually rolling out ads on the platform. And when you have a global user base of more than 220 million users already, it does beg the question of where are you going to get that incremental dollar? If not from a new user, then how do you monetize your existing users? And one way to do so, maybe with ads, and maybe with this new fee to password sharing.

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