Latest news with #CapitalRaise
Yahoo
23-07-2025
- Business
- Yahoo
Investment platform Yieldstreet raises $77m
Private markets investment platform Yieldstreet has completed a capital raise of $77m, drawing both new and existing investors. The funding round was spearheaded by Tarsadia Investments, with contributions from Mayfair Equity Partners, Edison Partners, Cordoba Advisory Partners (CAP), and Kingfisher Investment Advisors, as well as new participant RedBird Capital Partners. This financial boost is intended to enhance Yieldstreet's platform capabilities and facilitate the integration of private markets into individual investors' portfolios. The investment also brings added industry expertise to Yieldstreet's board, with Mike Zabik from RedBird Capital Partners and Yariv Robinson from Kingfisher Investment Advisors joining as new members. RedBird Capital Partners partner Mike Zabik said: 'Yieldstreet has built a differentiated platform for investors and we're excited about their vision to provide investor access to a broad universe of private markets opportunities that have been historically limited to large institutional investors. 'I look forward to working with the Board and management team, supporting the company's vision and momentum through RedBird's distinct business building approach.' In April this year, the company introduced Yieldstreet 360, its inaugural automated investing solution, marking a step in the evolution of its platform. This platform seeks to remove traditional barriers to private market investments, offering individual investors diversified access to private equity, private credit, and real estate, all aligned with their financial goals. Yieldstreet CEO Mitchell Caplan said: 'The next five years will define how individual investors access private markets investments. 'The convergence of regulatory evolution, technological advancement, and investor demand has created the conditions for a new era in private markets.' Yieldstreet, which currently boasts over 500,000 members, helps investors to diversify their portfolios across various asset classes, including real estate, private credit, private equity, and art. The platform provides investment opportunities across ten asset categories. "Investment platform Yieldstreet raises $77m" was originally created and published by Private Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Globe and Mail
13-06-2025
- Business
- Globe and Mail
GameStop Stock Selloff Explained - Buy Chance or Value Trap?
Video game retailer GameStop Corp. GME shares had unpredictable price swings in 2021 due to a short squeeze, followed by a steady decline. GameStop's shares recently plunged due to lower quarterly revenues and investor dissatisfaction with the company's new capital raise policy. Despite this, the company cut costs and improved profitability. Does GME stock present a good buying opportunity or is it a value trap? Why GameStop Shares Are Falling? GameStop's latest fundraising initiative led to a drop of over 20% in its share price on Thursday. The video game retailer was planning to raise $1.75 billion in debt financing from investors, its second such move in recent times. GameStop raised funds for general corporate needs, with investments linked to their Investment Policy. The funds were likely used to buy Bitcoins (BTC), which is consistent with GameStop's policy update in March. GameStop recently raised funds to purchase 4,710 Bitcoin, valued at more than $500 million. This shift from selling video games to investing in Bitcoin was aimed at enhancing the company's value and increasing liquidity to meet financial needs. However, GameStop's recent decision to acquire more Bitcoin was not well-received by investors. This is because Bitcoin is a volatile asset; it performs exceptionally well when it continues to rise, but when it drops, it can pose significant risks. Is the Decline in GameStop Shares a Buy Opportunity? GameStop is emulating Strategy Incorporated MSTR, previously known as MicroStrategy, which has acquired nearly 530,000 Bitcoins worth more than $45 billion since 2020. Strategy's shares surged over 2,500% in the last five years, benefiting from Bitcoin's bullish trend, particularly post the November Presidential election. GameStop's investment in Bitcoin could be beneficial, but its impact on revenue growth remains uncertain. In the first quarter of 2025, GameStop's revenues decreased by 17% compared to the previous year. According to the latest SEC filing, GameStop's sales fell by 28% to $3.8 billion in 2024 from $5.3 billion in 2023. The company's revenues decreased due to shifting customer interest from physical to digital video games. GameStop, though once a meme stock craze of the early 2020s, now lacks revenue growth while facing business challenges. Without new revenue-boosting strategies in place, it's sensible to avoid high-risk investments in GameStop, even though shares are trading at a discount. Is GameStop a Value Trap Right Now? Generally, a value trap occurs when a cheaply priced stock has problems like falling earnings and weak management, but this doesn't apply to GameStop. GameStop faced more troubles during the pandemic as people stayed at home and avoided stores. However, GameStop's management made strategic moves to cut costs and increase profitability by closing stores in various countries like Switzerland, Austria, Ireland, Italy, and the United States. They are now planning to do the same in Canada and France this year. GameStop posted almost $45 million in profits in the first quarter of 2025, a substantial year-over-year improvement, and has a 29.7% debt-to-equity ratio, lower than the Gaming industry's average of 186.4%, indicating financial stability. This reliance on shareholders' equity over borrowed capital could keep stakeholders interested for potential gains. Image Source: Zacks Investment Research For now, GameStop has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GameStop Corp. (GME): Free Stock Analysis Report MicroStrategy Incorporated (MSTR): Free Stock Analysis Report This article originally published on Zacks Investment Research (
