Right on time, shares of the de-SPAC and the merger of DWAC with Trump’s media company (DJT) plunged on Monday. DJT stock lost 21.5% yesterday and will open the day down this morning. Trump’s media site does not produce meaningful revenue. Still, if supporters willingly spend heavily to advertise on the platform, the stock may bounce back.
Avoid DJT stock for now as selling momentum accelerates.
GameStop (GME) kicked off Q2 by falling 4.2%. Fundamentals worsened considerably after the boutique gaming firm posted quarterly results. At worst, the company is a zombie with plenty of cash. It may burn through up to $200 million annually and still survive for around a decade.
Walgreens (WBA) lost 9.9% on Monday. Despite value hunters buying the drugstore firm for its undervaluation, the lower EPS revision is a concern. The new CEO will need at least a few quarters to repair the company. This starts with shaking up management, cutting middle management, identifying excessive expenditures, and attracting more customers.
Short-sellers likely spent the three-day long weekend assessing the headwinds in Walgreens Boots’s prospects. Its shareholders may have sold the stock, buying the stronger competitor, CVS Health (CVS), instead.
In the electric vehicle market, Tesla’s (TSLA) $1000 price hike announcement failed to lift the stock. Speculators are also dumping Nikola (NKLA), while Rivian (RIVN) is steady at around $11.00.
