Investors have had to recalibrate over the last couple of weeks as Reddit users and memes positioned themselves as players on the real-world financial stage. Related byproducts to the internet culture are growth in online gambling and Esports. In a tweet this week, the Citron research group suggested GameStop should purchase the Esports betting company Esports Entertainment Group Inc. (GMBL). Citron, which had been an advocate of short-selling GME early has switched its position and now thinks that the marriage of these two companies could provide investors a new opportunity. GMBL was up 18.9% after the tweet. Citron has placed a price target of $50 on GMBL and believes this acquisition is the hybrid play to turn GameStop into a one-stop-shop for all things video gaming. GME is in another frenzy of its own rallied on open Thursday despite the S&P 500 slipping yet again.
FINSUM + Magnifi: Gambling has made its way mainstream as legalization keeps expanding, and as a generation of internet gamers has more disposable income they are betting on what they know. While Esports was once an underdog, investors might see value in its internet betting platforms.
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