Small-caps lead as market warms up

Good Afternoon! 

Hey, everyone. It's Adam from Elite Trade Club. 

Here’s what moved the market today.

Markets 📈

The market warmed on Tuesday after a spinning its wheels for the past few sessions. Large-caps notched modest gains, while the Russell 2K outperformed with a rally of more than a point.

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Market-Moving News 🔎 

🎮 Sony Joins the Layoff Leagues

Sony Group (NYSE: SONY) has decided it's time for a bit of spring cleaning, albeit a bit early and not in the way you'd hope. They're trimming down their workforce, with 900 employees from the PlayStation biz getting the boot.

That's 8% of the squad, folks. Alongside, they're closing down their London studio. In corporate speak, they're "ensuring they're set up to continue bringing the best gaming experiences." Translation: streamlining operations in the face of changing market dynamics.

Market Moves & Gamer Grooves 📉
As Sony sharpens its focus, their U.S.-listed ADRs didn't even flinch, dipping less than 1%. Meanwhile, the broader gaming industry is feeling a bit like a game on hard mode.

Spending on video games in 2023 was basically flat, a stark change from the growth spurts we're used to. It seems players might be getting a bit choosier with their cash or, perhaps, everyone's just outside more?

Layoff Leaderboard 🏆
Sony's not solo in the layoff league. They're joining the ranks of Microsoft, which also cut about 8% of its gaming staff post-Activision Blizzard buyout.

Unity Software and Riot Games have been in the job-cutting club too. It's as if there's a high score for downsizing, and tech companies are all too eager to beat it.

PS5's Performance 🕹
Despite the doom and gloom of layoffs, the PlayStation 5 has been a bit of a superstar, with sales north of 54.8 million units. However, Sony's hinting at a sales slowdown.

Their main rival, Microsoft, keeps its console sales figures a secret, but estimates suggest the Xbox Series S and X are at about 27 million units. Looks like the console wars are still on, but with a few less soldiers on the field.

Viking Therapeutic [VKTX] $85.05 (121.0%)
publishing positive data from a Phase 2 VENTURE Trial of VK2735.

Janux Therapeutic [JANX] $49.75 (+229.4%)
said JANX007 and JANX008 produced positive results in clinical trials for metastatic prostate cancer and solid tumors, respectively.

Sezzle SPAC [SZZL] $22.50 (+120.5%)
shareholders voted to approve the company’s proposed business combination with European Lithium Ltd at a Feb. 22nd meeting.

Minerva Nueroscience [NERV] $2.80 (58.8%)
said the FDA rejected its drug MIN-101C03, AKA roluperidone, as a treatment for schizophrenia.

InfoBird [IFBD] $1.28 (53.6%)
continued to fall after postponing a 1-for-8 reverse stock split scheduled for yesterday until March 4th

Thoughtworks [TWKS] $3.28 (28.8%)
published weaker-than-expected financial results and disappointing forward-looking guidance on its Q4 earnings report.

That's it for today! Please, write us back, and let us know what you think of the Closing Bell Roundup. We're always eager to hear feedback from our members!

Thanks for reading. I'll see you at the next open! 

Best Regards,
— Adam G.
Elite Trade Club

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