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- Telecom Upstart Dials Up 77% Gains
Telecom Upstart Dials Up 77% Gains
Adam Garcia
March 26, 2025
A discount retailing giant is surging after strategic divestiture of its underperforming division, a telecom disruptor is skyrocketing after landing a major national partnership, and a meme stock is surging after adopting Bitcoin for its treasury reserves.
Read on to learn all about it.
Future of Screen Tech (Sponsored)
The rise of OLED technology created life-changing returns for early investors—turning a $6 IPO into a $252 stock. Now, a new wave is forming in display tech, and it could be even bigger.
The MicroLED market is projected to surge past $21 billion by 2027, with a CAGR of over 80%.
One small company is leading the charge with a patented, cost-effective production process that could finally make MicroLED displays scalable—and profitable.
With a co-development partnership in place and growing industry momentum, this stock could be the one to watch before Wall Street catches on.
Futures 📈
What to Watch
Earnings:
Jefferies Financial Group Inc. [JEF]: Aftermarket
Alvotech [ALVO]: Aftermarket
H. B. Fuller Company [FUL]: Aftermarket
Concentrix Corporation [CNXC]: Aftermarket
Verint Systems Inc. [VRNT]: Aftermarket
Economic Reports:
Durable-goods orders [Feb]: 8:30 a.m.
Durable-goods minus transportation [Feb]: 8:30 a.m.
Minneapolis Fed President Neel Kashkari will speak at 10:00 a.m.
St. Louis Fed President Alberto Musalem will speak at 1:10 p.m.
What’s Musk Planning? (Sponsored)
A Boston based think tank believes we could be just days away from Elon Musk launching his next big venture.
It’s uniquely connected to his new role in the Department of Government Efficiency ("DOGE")… but could have a far reaching impact on every facet of life in America.
They’ve released a fascinating new documentary connecting all the dots on what they believe Elon’s planning and how it could impact your money.
Retail
Dollar Tree Surges After Earnings Beat and Family Dollar Exit Plan
Shares of Dollar Tree Inc. (NASDAQ: DLTR) are trading 5.6% higher in premarket action this morning due to its stronger-than-expected quarterly earnings and a $1.01 billion agreement to sell its Family Dollar division.
The retailer reported adjusted earnings of $2.29 per share for the quarter ending February 1, ahead of Wall Street’s estimate of $2.19.
Quarterly revenue is flat year-over-year at $5 billion, but same-store sales at Dollar Tree-branded stores rose 2%, with modest growth in both customer visits and average transaction size.
In a strategic shift, the company will offload its Family Dollar business to Brigade Capital Management and Macellum Advisors.
Dollar Tree expects to receive approximately $804 million in net proceeds once the deal is finalized, which is projected to occur within the next 90 days.
CEO Mike Creedon says the sale will allow the company to fully concentrate on accelerating Dollar Tree's core operations and delivering stronger shareholder returns.
Looking ahead to fiscal 2025, Dollar Tree projects net sales between $18.5 billion and $19.1 billion and anticipates same-store sales growth of 3% to 5%.
Adjusted earnings per share from continuing operations are expected to range from $5.00 to $5.50, slightly below consensus forecasts.
Gaming Merchandize
GameStop Surging After Earnings Beat and Bitcoin Investment Announcement
Shares of GameStop (NYSE: GME) are climbing this morning after the video game retailer reported stronger-than-expected quarterly earnings and revealed plans to allocate a portion of its capital to bitcoin.
In its latest earnings release, the company’s adjusted earnings of $0.30 per share for the fiscal fourth quarter ending February 1 are up from $0.22 a year earlier and well ahead of the $0.08 analysts anticipated.
Revenue, however, is down to $1.28 billion from $1.79 billion, falling short of the $1.48 billion consensus.
Despite the sales miss, investors are reacting positively to the board's unanimous decision to adopt bitcoin as a treasury reserve asset.
The announcement follows recent speculation of a potential cryptocurrency initiative, stoked by CEO Ryan Cohen’s photo with MicroStrategy’s Michael Saylor.
Hardware and accessories revenue dropped to $725.8 million, while software sales fell to $286.2 million.
Collectibles, however, rose to $270.6 million. The company also trimmed operating costs, with SG&A expenses declining to $282.5 million from $359.2 million.
Bitcoin remains steady near $88,200, while GameStop shares are up 16% in early trading.
The move into crypto reflects an evolving strategy as GameStop looks beyond its core retail business to find new growth opportunities in emerging sectors.
Pet Food
Chewy Tops Earnings Forecast as Autoship Loyalty, Active Users Drive Results
Shares of Chewy Inc. (NYSE: CHWY) are trading higher this morning as the online pet supply company reported fourth-quarter results that exceed Wall Street forecasts on both profit and revenue.
For the quarter ending February 2, Chewy’s adjusted earnings of $0.28 per share are ahead of analyst expectations of $0.21.
Revenue is at $3.3 billion, slightly above the $3.2 billion consensus estimate compiled by FactSet.
The stock is up 3.63% in premarket trading.
CEO Sumit Singh says the company closed the quarter with results that not only exceeded its own projections but also capped off a strong fiscal year.
He attributes the performance to a solid increase in active users and continued loyalty from customers enrolled in its Autoship program, which automates recurring purchases.
Chewy has leaned heavily into its customer retention strategies and subscription model to navigate a competitive retail environment.
The Autoship program has remained a key driver of growth, helping boost sales consistency and customer lifetime value.
With a strong finish to the fiscal year, the company is now looking to maintain its momentum as demand for pet products remains resilient across online channels.
Movers and Shakers
SurgePays [SURG] - Last Close: $1.38
SurgePays is a wireless telecom and fintech company focused on underserved communities.
Its shares are soaring 77% in premarket trading after the company announced a revenue forecast exceeding $200 million over the next year, driven by its new national partnership with AT&T and the launch of LinkUp Mobile. SurgePays expects to achieve positive cash flow before the end of 2025.
My Take: With AT&T integration now fueling rapid scale and a bold revenue forecast, SurgePays looks good for a breakout year. However, it has struggled with profitability in recent quarters, so take this growth with a pinch of salt.
Rafael Holdings [RFL] - Last Close: $2.06
Rafael Holdings is a biotech company with interests in clinical and early-stage pharmaceutical ventures.
It recently merged with Cyclo Therapeutics, acquiring Trappsol® Cyclo™, a Phase 3 asset targeting a rare and fatal genetic disorder. The stock is rising 27% in premarket trading due to the completion of this merger.
My Take: The merger positions Rafael Holdings strategically in the rare disease market. However, its success will heavily depend on the forthcoming results of the TransportNPC™ Phase 3 trial, expected in mid-2025. Keep an eye out for those.
Leap Therapeutics [LPTX] - Last Close: $0.39
Leap Therapeutics is a clinical-stage biotech company developing targeted and immuno-oncology therapies.
Shares are rising in early trading after the company reported encouraging Phase 2 data showing significant improvements in response rates and progression-free survival for its anti-DKK1 therapy.
My Take: With a clear biomarker-driven strategy and positive mid-stage data, Leap’s sirexatamab is emerging as a potential player in a tough oncology space. Keep a close watch on this stock for the future.
Investor Risk Signals (Sponsored)
Perhaps no one on or off Wall Street has been more accurate calling the bull and bear turns of the past 7 years.
From the bear markets of 2018 and 2022... to the roaring bull runs of 2021, 2023, and 2024.
And now, Marc Chaikin is predicting the next crash will start March 14, 2026. If you have money in the markets, Chaikin's thesis is a must-see.
Everything Else
BMW and Alibaba expand their AI collaboration to enhance in-car experience.
Washington tightens controls on China’s AI and chip industries with 50 new blacklists.
Island secures $250 million in funding as its enterprise browser reaches a $4.8-billion valuation.
Boeing’s attempt to avoid a trial falters as the judge orders the criminal fraud case to proceed.
Worthington Industries reports a better-than-expected Q3 profit as its revenue beats forecasts.
Noah Holdings sees a 18.5% revenue drop in Q4, and its stock falls after the earnings release.
DeepSeek's success fuels the rapid expansion of China's open-source AI market.
India will maintain its sugar export quota as domestic supply remains stable.
KB Home’s stock drops after the company warns of weaker housing demand and sales.
That’s all for today. Thank you for reading. If you have any feedback, please reply to this email.
Best Regards,
— Adam Garcia
Elite Trade Club
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