GameStop (NYSE:GME) is having quite a start to the new year. The video game retailer is transcending its previous existence as a brick and mortar commerce company and moving to new grounds. Of course, it has done this thanks in no small part to an army of retail investors looking to take share prices sky-high. As GameStop makes an announcement this week, there is fundamental bullishness surrounding GME stock; but, a rumor around another potential partnership is certainly helping to stir the pot as well.
Earlier in the month, GameStop made a blockbuster announcement, bridging the company with blockchain project Immutable X (CCC:IMX-USD). As it turns out, Immutable X will be providing crucial infrastructure to GameStop’s coming non-fungible token (NFT) trading platform.
Initially, this announcement sowed some confusion; since the very first rumors of a GameStop NFT marketplace, investors had been sure that Loopring (CCC:LRC-USD) would be the lucky project to collaborate with the company. Of course, this ended up being a non-issue for GME and LRC bulls; the company states in its 8-K filing that it would be working with both Immutable X and Loopring on the service.
Microsoft Rumors Buoy GME Stock for Second Straight Week
This announcement on its own is enough to work wonders for GME stock prices; since the announcement, GME prices have increased by about 20%. However, there’s another catalyst helping to boost the stock — an exciting Microsoft (NASDAQ:MSFT) rumor.
GME stock remains on the rise ever since the first Immutable X announcement. While most of these gains can be chalked up to the announcement itself, there are some stock sleuths that believe investors could expect a Microsoft partnership in the near future.
Several Twitter users this week are stirring up chatter around the partnership. The rumors stem largely from a series of tweets between GameStop, Immutable X and Microsoft blockchain team core member Yorke Rhodes. Rhodes sparked the rumors after tweeting a response to GameStop’s announcement and tagging Microsoft and GameStop’s accounts.
Since investors first drew attention to the tweets, there have been numerous theories cropping up around the collaboration. The general sentiment is that a partnership between the two stands to benefit GameStop greatly; it would give the company more licensed content to work with. Additionally, with Microsoft’s increasing focus on virtual reality (VR) technology, the partnership could give GameStop an in to the increasingly popular metaverse industry.
GME stock is up 4.5% as trading advances into the afternoon.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.