Shortseller Citron Research said on Friday that GameStop Corp (NYSE: GME) should buy online gambling company Esports Entertainment Group Inc (NASDAQ: GMBL).
“It is opinion of Citron that $GME next move is obvious and easy to justify stock price’” said Citron.
“They should buy $GMBL. Listen to your customers..they like to gamble and they like video games. Esports Gambling – Great synergies….$GMBL could easily go to $50,” they added.
It is opinion of Citron that $GME next move is obvious and easy to justify stock price. They should buy $GMBL. Listen to your customers..they like to gamble and they like video games. Esports Gambling – Great synergies….$GMBL could easily go to $50. https://t.co/FQYzY9t2R3
— Citron Research (@CitronResearch) February 25, 2021
In a report on Citron’s website, they said, “there is one way for GME to seamlessly both pivot away from its secularly declining retail business and monetize its customer database, and that answer is to acquire Esports Entertainment Group (GMBL).”
After the initial surge in GameStop shares at the end of January, Citron was forced to close out its short position in the stock and later said it will no longer publish short reports.
Esports Gaming’s share price has rocketed since Citron’s tweet, currently trading at $21.84, up 24.23%, with its high of the day so far being $24.48.
GameStop’s share price has continued Wednesday’s rally and is trading 44% higher at $132.66.
Update:
ESPORTS ENTERTAINMENT – HAVE TALKED TO GAMESTOP IN PAST ABOUT AREAS WITHIN ESPORTS FOR COLLABORATION BUT HAVEN'T HAD DISCUSSIONS AROUND ACQUISITIONS
— *Walter Bloomberg (@DeItaone) February 25, 2021