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Esports Entertainment stock soars after Andrew Left’s Citron says GameStop should buy the online gambling company

Shares of Esports Entertainment Group Inc. soared Thursday toward a more than three-year high, after Citron Research said GameStop Corp. should buy the online gambling company to provide customers two things they love: videogames and gambling.

Citron’s call marks a change in tactic from its editor, Andrew Left, a widely known short seller who had previously been bearish on GameStop
GME,
+18.56%
.
In January, Citron said it would stop publishing short-selling research, after Left said his social-media accounts were hacked and his children were threatened by angry GameStop investors.

At that time, Citron said it would focus on “long-side multibagger opportunities” for individual investors.

“What we learn from the past 4 months in GME are 2 easy takeaways: People love video games and people love to gamble,” Citron said in a research note. “So now, in order for GME to … maintain a high share price … they must change their narrative NOW.”

GameStop shares were back in vogue, shooting up 57.0% in morning trading, after skyrocketing 103.9% on Wednesday. Prior to the rally, the stock had closed Tuesday at $44.97, or 87.1% below its Jan. 27 record close of $347.51.

“There is one way for [GameStop] 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.”

Esports Entertainment shares
GMBL,
+5.35%

Article source: https://www.marketwatch.com/story/esports-entertainment-stock-soars-after-andrew-lefts-citron-says-gamestop-should-buy-the-online-gambling-company-11614268272

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