The r/WallStreetBets army is at it again. The hype machine is in full swing, and investors in Super League Gaming (NASDAQ:SLGG) and SLGG stock are benefiting nicely today. Currently, shares of SLGG are trading 25% higher.
Investors have piled into this trade on some wild speculation GameStop (NYSE:GME) could be looking to buy an esports company. And specifically, SLGG stock has been the target of the Reddit crowd recently. This is mainly due to a tweet from GameStop board member Ryan Cohen depicting a McDonald’s (NYSE:MCD) ice cream cone and frog emoji. These cryptic symbols have been tied to SLGG’s CEO Ann Hand, whose business experience overlapped McDonald’s and Project Frog.
These wilds swings in SLGG stock have taken investors on quite the rollercoaster this month. SLLG stock entered this month traded at around the $3 level. Since then, SLGG shares briefly breached $9 and have settled toward the $7 level today after a selloff last week.
Today, there’s some additional news driving additional speculation in this name. Let’s dive into what was announced, and why it matters for investors.
SLGG Stock Soaring on Acquisition Announcement
Super League Gaming announced today the acquisition of Mocbrush, a live streaming platform. This platform has “hundreds of thousands of gaming influencers who generate and distribute almost two million hours of original content annually and have accumulated more than 4.5 billion fans and subscribers across the most popular live streaming and social media platforms, including Twitch, YouTube, Facebook, Instagram, Twitter, and more.”
Investors seem to be taking this announcement well. Some may even see it as an indicator that a GameStop acquisition could be in the cards. However, as mentioned, this is purely speculation.
Regardless of whether or not an acquisition materializes, it appears investors like this deal. The esports sector itself has picked up momentum since late last year. Adding the growth potential arising from streaming platforms like Mocbrush to the fold is pleasing to investors.
Where this stock goes, no one knows. However, for investors concerned about volatility, this may be a stock to watch from the sidelines for now.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article.