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,
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 55.8% 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.