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What Is Going on With Mobile Global Esports (MGAM) Stock Today?


  • Mobile Global Esports (MGAM) wants to produce competitive gaming tournaments in India.
  • Recent 5G spectrum auctions have speculators interested.
  • The company has yet to report any revenue.
MGAM stock - What Is Going on With Mobile Global Esports (MGAM) Stock Today?

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Mobile Global Esports (NASDAQ:MGAM) is an Indian-backed competitive gaming company that came public at the end of July. And this week, MGAM stock has been drawing speculative interest again.

The stock rose from $2.42/share to nearly $3 overnight, although no news was reported. It came public at $4/share and rose as high as $11 on its first two days of trading.

But MGAM has yet to report any revenue, its most recent 10-Q report reporting only an $85,000 loss.

Even at its current speculative level, the company’s market capitalization entering trading on Sept. 20 was under $55 million.

Sporting India

The idea behind Mogo, as the company’s called, is to build competitive college-based video gaming in India, where most consumers have smartphones but may lack computers. Mogo uses a proprietary compression technology called EVE for streaming and playing mobile games at the highest possible fidelity with the lowest latency. The company’s website says it is offering $580,000 in prizes and licensing for an India-built online multiplayer game.

Mogo wants to take advantage of India’s recent auctions of the 5G spectrum. These gave network operators the bandwidth needed to push advanced offerings like video gaming. The company was brought to the public market by Westport Capital, a Los Angeles firm that specializes in small public offerings.

The initial MGAM public offering raised just $6.9 million, of which MOGO received $5.875 million after commissions, with $500,000 in an escrow account. Before the public offering, MGAM listed assets of just $185,000, including $69,000 of cash. The company moved its headquarters from California to Connecticut at the start of September.

MGAM Stock: What Happens Now?

Any stock with a market cap of just $55 million is easy to manipulate. Until MOGO reports real results from its operations in India, any move in the stock will be speculative noise.

While speculative noise can be fun, there needs to be some reality underneath it. There’s just not much of that with Mogo and MGAM stock.

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On the date of publication, Dana Blankenhorn held no positions in any companies mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2022/09/what-is-going-on-with-mobile-global-esports-mgam-stock-today/.

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