Gasparino: Fed raising rates ‘clear sell signal’ for meme stock investing
FOX Business’ Charlie Gasparino reacts to Fed Chair Powell neglecting to address the meme stock frenzy.
GameStop's new CEO Matt Furlong is adding another title, board member.
"Matt is a proven e-commerce leader with a firm understanding of how to delight customers," former GameStop CEO George Sherman said on the company's first-quarter earnings call earlier this month. "His focus, intensity and work ethic will set the right tone atop the company as we begin shifting to a growth phase."
Furlong will lead GameStop's e-commerce transformation started by Chewy.com founder and newly elected board chairman Ryan Cohen, who has been shaking up the company's leadership over the past few months.
GAMESTOP UNVEILS NEW CEO, CFO LEADING E-COMMERCE TRANSFORMATION
During his nearly nine years at Amazon, Furlong oversaw the e-tailer Australia business operations and previously served as technical adviser to the head of Amazon's North America consumer business. Prior to Amazon, Furlong worked as an executive with consumer goods giant Proctor & Gamble, focusing on brand, marketing and sales strategies.
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GameStop has become one of the most high-profile "meme stocks" after becoming a Reddit sensation in January, when a speculative investing discussion forum on the platform, WallStreetBets, led a retail investor-fueled short squeeze against the company's short sellers. That short squeeze led to a meteoric rise in GameStop shares, catapulting the company toward membership in the Russell 1000 index.
The FTSE Russell is set to publish the final lists for the annual rebalancing of its family of indexes after the market's close on Friday, including the Russell 3000, the Russell Microcap index and several others.
In order to move into the Russell 1000 index, an existing Russell 2000 member would need to have had a market cap exceeding $7.3 billion that day, according to Catherine Yoshimoto, FTSE Russell’s director of product management.
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GameStop currently qualifies for the Russell 1000 with a $11.97 billion market cap as of the ranking day, while AMC Entertainment Holdings was below the ranking day's threshold with a market cap of $4.28 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP CORP. | 200.37 | -13.45 | -6.29% |
| AMC | AMC ENTERTAINMENT HOLDINGS INC | 55.72 | -3.28 | -5.56% |
Existing members of the Russell 3000's top 10 include Apple, Alphabet, Amazon, Microsoft, Tesla and JP Morgan Chase.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE, INC. | 132.30 | +1.84 | +1.41% |
| GOOGL | ALPHABET, INC. | 2,436.25 | +34.03 | +1.42% |
| AMZN | AMAZON.COM, INC. | 3,453.96 | -32.94 | -0.94% |
| MSFT | MICROSOFT CORP. | 262.63 | +3.20 | +1.23% |
| TSLA | TESLA, INC. | 620.83 | -2.48 | -0.40% |
| JPM | JPMORGAN CHASE & CO. | 150.49 | +2.64 | +1.79% |
According to FTSE Russell, total U.S. equity market capitalization has increased 52% year-over-year from $31.4 trillion in 2020 to $47.7 trillion in 2021.
The total market cap of the Russell 1000 Index has risen 50% to $44.1 trillion as of May 2021, compared with $29.5 trillion during the same period last year, and the market capitalization breakpoint separating companies in the Russell 1000 and Russell 2000 indexes has increased by 73% from $3 billion in 2020 to $5.2 billion for 2021.
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