Could a tweeted picture of an ice cream cone and a frog emoji be fueling double-digit pre-market gains in Super League Gaming (NASDAQ:SLGG)? Stay with me for a moment as SLGG stock runs up a further 13% ahead of Thursday trading, following yesterday’s near-30% gains.
The cone and the frog seem to have been interpreted by some Redditors on r/WallStreetBets and other subreddits as a hint about the possibility of GameStop (NYSE:GME) looking to by an esports company. Specifically, SLGG, which is led by CEO Ann Hand, formerly CEO of Project Frog and a business development manager at McDonald’s (NYSE:MCD).
That was in a tweet from Ryan Cohen, GameStop’s CEO. Social media has been all atwitter trying to decipher the meaning of the picture.
— Ryan Cohen (@ryancohen) February 24, 2021
Still with me? Good. It seems that the r/WallStreetBets crowd is wagering that GME is following Citron Research’s Andrew Left’s advice that it should purchase online gaming company Esports Entertainment (NASDAQ:GMBL). Left’s recommendation in February fueled gains in GMBL stock over several days.
Left said it makes sense because if there’s two things GameStop shareholders love, it’s video games and gambling. He sees this as a way for GME to both pivot away from its declining retail brick-and-mortar stores and monetize its wide customer database.
SLGG Stock Could Be an Alternative Play
That brings us to Super League Gaming as a potential alternative play for a GameStop move into esports.
Seems to make sense, as SLGG has a number of characteristics that Left saw in GMBL, specifically:
- A focus on offering gaming services to users.
- That includes connecting gamers with each other across its variety of services.
- Among these are live-streams, highlights, and other forms of social media interaction.
- The company is also behind several gaming clubs that support the competitive gaming scene.
On the date of publication, Robert Lakin did not have (either directly or indirectly) any positions in the securities mentioned in this article.
InvestorPlace contributor Robert Lakin is a veteran financial writer and editor, following fintech, agtech and property tech startups.