Good morning investors! Stocks ended higher for a third day in a row as investors see tension cooling down as some say the bulls are officially back.
Today we cover:
A look at the economy
Consumer sentiment falls
GameStop announces earnings and big BTC plans
📊 Economy and News
U.S. Consumers Cut Spending Amid Rising Debt and Economic Strains
Americans are tightening their budgets as high prices and economic uncertainty weigh on confidence, according to Synchrony Financial. While household finances remain broadly stable, consumers are accumulating more debt, with delinquencies rising for auto loans, credit cards, and home credit lines, the Federal Reserve reported.
Retailers like Target and Walmart have noted shifts in spending behavior, with shoppers prioritizing deals and lower-cost alternatives. Analysts warn that shrinking household budgets could signal future credit payment struggles. Loan growth across the industry has slowed by 5% to 12% year-over-year, a trend that could impact bank revenues.
Consumer finance stocks have taken a hit, with shares of American Express, Capital One, Synchrony, and Discover dropping 15-22% in the past month. Further pressure looms as COVID-era student loan delinquencies resurface on credit reports, potentially straining borrowers even more.
Global hits:
UAE set to lead Gulf economic growth in 2025 with non-oil economy set to grow 5.2%.
India eyes tariff cuts on $23 billion of U.S. imports to shield $66 billion in exports, scrapping digital ad tax, easing US concerns.
Moody’s says US fiscal strength on course for continued decline.
Shocking: For the first time, 50% of parents financially support an adult child, spending an average of $1,474 monthly—a three-year high, a new report finds.
Also, federal housing agency will not cut Fannie Mae and Freddie Mac loan limits.
Consumers losing confidence: Consumer confidence fell further in March, with future expectations hitting a 12-year low, the Conference Board reported Tuesday. The overall confidence index dropped to 92.9, marking a fourth consecutive decline, while the expectations index plunged 9.6 points to 65.2—well below the 80-point recession warning threshold. The index reflects outlooks on income, business, and job prospects.
Should parents financially support adult kids?
Sponsored by Mode Mobile
Google paid Apple $20B to be the default search engine on iPhones — and both companies hoped to shield it from the public.
The deal continues to fuel Google’s ad revenue engine, which made an eye-popping +$250B in 2024.
Mode Mobile wants smartphone users to get their piece of that money.
They’re flipping the data industry on its head, splitting the profits with their users by turning smartphones into an income-generating asset. Here’s what that looks like:
Paid over $325M to over $45M users.
Generated 32,481% 3-year revenue growth.
Ranked #1 fastest-growing software company by Deloitte in 2023.
📲Their EarnPhone could be considered the Uber of smartphones, and they’re gearing up for a potential IPO on the Nasdaq (ticker: $MODE).
And as companies desperately seek to extract more data, you can invest in Mode’s pre-IPO offering at just $0.26/share.
📈 Stocks
S&P 500 5,776.65 (+0.16%)
DJIA 42,587.50 (+0.0098%)
NASDAQ 18,271.86 (+0.46%)
BRENT CRUDE 73.02 (+0.03%)
* Prices as of Mar 26th, 12:20 AM UTC
GameStop Reports Earnings and Confirms BTC Plans
GameStop reported disappointing revenue for Q4 CY2024. Here are the figures:
Revenue: $1.28 billion (↓28.5% YoY), missing estimates of $1.48 billion (-13.2% miss).
Adjusted EPS: $0.30 vs. $0.08 expected (significant beat).
Operating Margin: 6.2%, unchanged from last year.
Free Cash Flow: $158.8 million, up from -$18.7 million last year.
Market Cap: $11.44 billion.
In a bold strategic move, GameStop announced that its board has approved using corporate cash to purchase bitcoin, echoing the approach taken by MicroStrategy. The company has not set a cap on the amount it may invest and could also use future debt or equity issuances to fund additional purchases. The stock jumped over 6% in extended trading following the news, reinforcing investor interest in the company’s evolving strategy.
Under CEO Ryan Cohen, GameStop has focused on cutting costs and streamlining operations to maintain profitability despite sluggish growth. The decision to invest in bitcoin marks another unconventional step in the company’s ongoing transformation. Whether this gamble will strengthen GameStop’s financial position or introduce new volatility remains to be seen.
Good to know: Oil major Shell vows to boost shareholder returns, doubles down on LNG push. On the other hand, Affirm announces JPMorgan Chase merchants can at checkout. Lastly, Tesla sales plunged 47% in the European Union in February. Tesla shares still rose 3.5%, after a big rally Monday.
Exciting: Software giant SAP becomes Europe’s most valuable firm amid German stock market boom. Elsewhere, big IPOs are coming as Israel’s eToro and Chinese bubble tea chain Chagee file for U.S. initial public offering. Lastly, Waymo will launch Washington, D.C., robotaxi service in 2026.
💵 Personal Finance
Empress Theodora: Invest in Your Network
Before becoming Byzantine Empress in the 6th century, Theodora rose from poverty as an actress and courtesan. She built a web of influential connections—merchants, politicians, and soldiers—that later helped her and Emperor Justinian stabilize their empire. Her wealth wasn’t just gold; it was relationships.
Lesson: Money isn’t your only asset. Investing time and resources in a strong network can pay dividends, opening doors no bank account can.
💰 Be a Better Investor
Money is like muck—not good except it be spread.
Resources:
What did you think of today's newsletter?
👩🏽⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.
Disclosures
*Mode Mobile recently received their ticker reservation with Nasdaq ($MODE), indicating an intent to IPO in the next 24 months. An intent to IPO is no guarantee that an actual IPO will occur.
*The Deloitte rankings are based on submitted applications and public company database research, with winners selected based on their fiscal-year revenue growth percentage over a three-year period.
*Please read the offering circular and related risks at invest.modemobile.com.