GameStop Can Justify Its Valuation By Turning Into A '5,000-Store Introduction To Crypto,' Says Cramer
CNBC host Jim Cramer said Thursday that GameStop Corporation (NYSE: GME) could justify its share price by turning itself into a cryptocurrency game.
What Happened: The host "Mad Money" referred to other companies like Paypal Holdings Inc (NASDAQ: PYPL) and Nvidia Corporation (NASDAQ: NVDA) that are currently linked to cryptocurrency in one way or another.
"If GameStop turned into an introduction to crypto with 5,000 stores, do it so that it sells $ 1 billion worth of stocks ... and buy crypto with it, and then do it that way is an international venue where you win bitcoin I think you can justify the share price, ”Cramer theorized.
“I couldn't think of anything else, but it works. And it doesn't have to be Bitcoin. We can do it crypto. "
Cramer said that if GameStop turns into a "place for crypto information" and has global games with no latency, it would add credibility to GameStop investor and Chewy Inc. (NYSE: CHWY) co-founder Ryan Cohen.
The former hedge fund manager also pointed to the imminent resignation of GameStop CFO Jim Bell, saying, “CFOs generally don't have Bitcoin on their balance sheets. Maybe Jim Bell, he didn't want that. "
Cramer called Cohen a “great thinker” and said, “I feel like this is the way to get this stock higher. I can't think of any other way. "
Why It Matters: The shares of GameStop, AMC Entertainment Holdings Inc. (NYSE: AMC), BlackBerry Ltd. (NYSE: BB) and Nokia Oyj (NYSE: NOK) received a brief push from the Reddit forum r / WallStreetBets.
A notable poster on the forum - "Deep Fing Value" - credited by forum members for pointing out the brief print opportunity told US lawmakers that they liked GameStop stock.
"As far as I can tell, the market is unaware of the unique capabilities of GameStop in the gaming industry," said the poster, whose real name is Keith Partick Gill.
On Wednesday, Cramer called the 103% rise in GameStop shares "ridicule" and asked, "Where is the government?"
Alma Angotti, a former law enforcement attorney with the Securities and Exchange Commission, said increased interest from regulators was to be expected.
"I think both Congress and the SEC will look into this balance between orderly markets and let people invest whatever they want to invest for whatever reason they want to invest, even if it doesn't make sense to us," CNBC reported .
Price Action: GameStop shares closed nearly 18.6% higher at $ 108.73 on Thursday and fell 2.51% to $ 106 after close of business.
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Photo courtesy EPIC via Wikimedia
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