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Chime’s (CHYM) next growth move starts with Stride. (00:13) GTA 6 is already fueling a console war. (00:56) As Hyrox races across six continents, investors are chasing the trend behind it. (01:43)
This is an abridged transcript.
Chime Financial (CHYM) has agreed to acquire Stride for $590M in cash.
Stride has been Chime’s bank partner for over seven years. The transaction value represents approximately 1.5x tangible book value for Stride.
The transaction is expected to be accretive to EPS immediately upon closing, with further upside expected over time.
The purchase is set to be funded from cash on Chime’s balance sheet.
The transaction, unanimously approved by both boards, is expected to close in the first half of 2027.
Additionally, Chime has raised its full-year and third-quarter earnings guidance.
CHYM is up +11% in premarket action after falling 4.3% on Tuesday.
After a 13-year wait, the release of the next installment of the Grand Theft Auto franchise is forecast to be a major catalyst for the videogame industry.
Forecasts for Grand Theft Auto 6 unit sales range as high as 40M over the first year, while some analysts think the game will eventually pass Minecraft as the most popular title of all time.
Recent data from Sensor Tower indicates that PlayStation has claimed 77% of the 5.3M Grand Theft Auto 6 pre-sales, while Xbox currently makes up 23% of sales. The download market share is higher than the estimated installed base market share for PlayStation of about 72%, indicating even more momentum for Sony (SONY).
Fitness racing brand Hyrox has attracted private equity interest.
According to Bloomberg, sources indicated that L Catterton is close to buying a controlling stake in Hyrox in a deal that may value the fitness competition brand at about $697M. Co-investors may be part of the deal.
Hyrox disclosed that more than 1.5M people took part across 105 events in 35 countries in its latest season. Looking ahead, Hyrox forecasts more than 2M participants across 107 race weekends on six continents in the 2026-2027 season. Expansion into new markets in Asia is a major part of its plans.
Stocks that have benefited from the rise of Hyrox include Puma (PMMAF), Zepp Health (ZEPP), On Holdings (ONON), and Academy Sports + Outdoors (ASO).
What’s Trending on Seeking Alpha:
Anthropic researcher quits over AI safety fears, echoing other expert warnings
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Qualcomm jumps as it teams with Amazon on next-gen AI data center deal
Catalyst watch:
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Coca-Cola Company (KO) CEO Henrique Braun will present at the Barclays Global Consumer Conference.
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Apple (AAPL) will hold a high-profile iPhone launch event. Morgan Stanley previewed that it may be Apple’s most consequential iPhone launch since iPhone X. Apple’s first foldable and the largest iPhone price increases in years are seen creating a critical test of pricing power for the tech giant.
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Varonis Systems (VRNS) is scheduled to present at Citi’s 2026 Global TMT Conference. Media reports on Tuesday indicated that Thoma Bravo’s Proofpoint is in talks to buy Varonis.
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The NFL season begins when defending Super Bowl champion Seattle Seahawks host the New England Patriots. Sports betting names Flutter Entertainment (FLUT), owner of FanDuel, and DraftKings (DKNG) are direct seasonal plays on the strong consumer interest in NFL football. Media giants Amazon (AMZN), Disney (DIS), Fox (FOX), Comcast (CMCSA), Paramount Skydance (PSKY), Alphabet (GOOGL), and Netflix (NFLX) all have a hand in the games as well. Genius Sports (GENI) has also been tapped by analysts as a potential beneficiary of the calendar turning to football.
Stock index futures are in the red.
Crude oil is up 2.3% at $95. Brent crude is up 2.6% at $100.
The FTSE 100 is down 0.5% and the DAX is down 1.3%.
One stock on the biggest movers list: Mission Produce (AVO) +5% – Shares rose after the avocado producer reported a 38% Y/Y increase in avocado volumes, driving a 26% increase in FQ3 sales and an adjusted EPS of $0.18, 6 cents above expectations.
Economic calendar:
Editor’s Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.
