7 Reddit Stocks That Could Be 2022’s Next GameStop

what is the next gamestop

Believing GameStop overpriced, hedge funds had “shorted” the company, betting the share price would fall. Using $50 million for 2022’s revenue, which could still be aggressive, makes the market cap to revenue ratio 62x. While this isn’t in the stratosphere, a lot has to go right just to support today’s stock price.

My initial assessment of Troika assumed that the firm would act in good faith to keep investors updated about its outsized Series E deal. A Schedule 13D or 8-K filing should have notified shareholders of any significant exercise, since the dilutive effect would be 1) a material event, 2) a 5% or more change in ownership, or 3) both. Instead, it took until March 7 for the firm to retroactively announce in its annual report that its share count had risen over five-fold. In 2022, all that changed when Troika bought out Converge, LLC, an ad tech firm generating around $21 million in profits annually. Troika Media Group is an acquisitions company that can trace its roots back to Roomlinx, a Nevada-based firm founded in 1998.

  1. Its market cap to revenue ratio (also using 2019 revenue) is 1.5x vs. the 0.15x as of December 31, 2020, less than four months ago.
  2. Short interest can lead to a short squeeze, which has propelled several big GameStop moves in the past.
  3. Vanderbilt professor White told ABC News that this “David versus Goliath” saga “reflects a lot in our society” amid a pandemic that has exacerbated income inequality.
  4. He added that in many ways “there’s really no difference” between what this Reddit army did and what hedge funds or institutional investors do when they see a stock that is mispriced in some way.
  5. Therefore, it may not be out of the realm of possibility that Lottery.com could be a hit this year.
  6. But he said it’s difficult to declare it a clear case of market manipulation.

But that also means a recurring revenue stream for the Redditers who believe greed is good. As I mentioned before, this list of potentially massive Reddit stocks for 2022 is simply a giant guess. However, I’m noticing some patterns regarding which securities receive outsized attention. Therefore, it may not be out of the realm of possibility that Lottery.com could be a hit this year.

“Nobody goes to WallStreetBets thinking that this is a safe place to spend money,” Reddit boss Steve Huffman recently told me. WallStreetBets is a great description of the group – investing in GameStop has become one collective gamble. “What makes this dangerous is that sophisticated investors are smart enough to know when to get out of the situation,” he said. “Everybody is looking at WallStreetBets now,” Americans for Financial Reform analyst Alexis Goldstein told me.

Sharp losses for short sellers may have pushed them to sell some of their other stock holdings to raise cash, and several investors say that contributed to Wednesday’s 2.6% slide for the S&P 500. But lately it’s been more about inflicting pain on short sellers, hedge funds and other big financial firms. Many talk about it in terms of evening the ledger with the financial elite, who benefited from years of gains as other people fell further behind.

Dec. 8, 2020: GameStop reports dismal earnings, stock takes a tumble

Third, I do not own the featured securities and therefore, I don’t care whether they move higher or not. Still, the meme-trading phenomenon that started with GameStop may continue throughout the new year, even if GME stock itself is starting to look long in the tooth. With that in mind, here are other possible ideas for Reddit stocks that could be the next big thing. As many of you may know, cruelty to animals is “symptomatic of a deep mental disturbance,” per Henry R. Hermann Ph.D., a researcher in human behavior and criminality. Well, those who are adamant about supporting Reddit stocks to buy may demonstrate reverse psychopathy.

what is the next gamestop

But analysts still expect GameStop to keep losing money in its next fiscal year. Many Redditors have taken these signs that TRKA stock could become the next GameStop. A cheap share price, the retention of Jeffries and the recent short squeeze all seem like a repeat of GME in 2021.

From now on, people may have a permanent interest in cryptos, irrespective of the digital market’s valuation. The other reason why Corsair appears too obvious is how bearish the market is on CRSR stock. As of the latest read (Dec. 31, 2021), CRSR features a short percentage of float of easymarkets affiliates 36.6%. Combined, these figures tempt — though absolutely not guarantee — a short-squeeze trade. Most of the traders who have been piling into the stock are likely chasing easy profits, and probably do not care whether GameStop’s strained business could make a miraculous turnaround.

Truist Just Raised Its Price Target on Plug Power (PLUG) Stock

GameStop, based in Grapevine, Texas, sells video games at more than 5,000 stores, and the pandemic has been keeping customers away. More worrisome is the long-term shift by customers away from brick-and-mortar stores and toward buying games online. As GME stock swung wildly, on Thursday Robinhood announced it would be restricting trading in the stock. “We continuously monitor the markets and make changes where necessary.

GameStop is one of the most heavily shorted stocks on Wall Street. The one that’s important in this story is called wallstreetbets. More than four million people are in it, usually discussing stocks and shares and where they’re going to invest money. “We expect that eventually GameStop stock price will come down and some people will lose money when that happens for sure,” he said. “And my fear is that they’ll view the stock market as being rigged and not being fair, and that they won’t invest in the stock market.”

what is the next gamestop

Imagine you borrow some Pokemon cards from a mate, because you think the price of them is about to drop, and agree to give them back in a month. There are Love Island forums, football forums, history forums – you name it. Vanderbilt professor White told ABC News that this “David versus Goliath” saga “reflects a lot in our society” amid a pandemic that has exacerbated income inequality. “Market participants should be careful to avoid such activity,” the statement added.

After all, crime — particularly property crime — is on the rise in the post-pandemic period, cynically boding well for CXW stock. When it comes to playing around with high short interest stocks, unless you are uncommonly lucky, let’s just say the risks greatly outweigh the rewards. GME, for example, has lost more than a quarter of its value so far in 2022.

EXPLAINER: Why GameStop’s stock surge is shaking Wall Street

On the date of publication, Tom Yeung did not hold (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 kraken trading review Guidelines. On the other hand, GameStop has been relatively clear about its finances and business outlook. The company has kept top-tier auditor Deloitte & Touche since 2013 and frequently updates shareholders in its detailed earnings calls.

The sort of thing you’d find between a doughnut shop and a makeup retailer in an American mall. Gill did not immediately respond to ABC News’ request for comment, though he told the Wall Street Journal last week that he “didn’t expect this.” Attal was the former chief marketing officer at Chewy, and oversaw its rapid expansion from three coinspot reviews people to more than 10,000 employees. Grube was the formerly the chief financial officer at Chewy, among other executive roles in the e-commerce space. Cohen is the founder and former chief executive of the e-commerce platform Chewy and one of the largest shareholders in GameStop through the private firm he operates, RC Ventures.

Reddit Stocks: CoreCivic (CXW)

It is even worse if you use the analyst’s $5.2 billion revenue estimate for 2022 as the company’s ratio is 2.3x. When a stock is very heavily shorted, a rise in its price can force short sellers to get out of their bets. To do that, they have to buy the stock, which pushes the stock even higher and can create a feedback loop. As GameStop’s short sellers have gotten squeezed this month, smaller and first-time investors have been egging each other on to to keep the momentum going.

Then again, the same could be said about the very hedge funds the social media crowd targeted. He added that in many ways “there’s really no difference” between what this Reddit army did and what hedge funds or institutional investors do when they see a stock that is mispriced in some way. The U.S. Securities and Exchange Commission on Jan. 29 issued a statement saying it is “closely monitoring and evaluating the extreme price volatility of certain stocks’ trading prices over the past several days.” And, the theory goes, many retail investors used their cheques to invest in the stock market. Many people on the WallStreetBets Reddit forum realised if together they drove up the price, the hedge funds would have to try to buy back shares, to cut their losses, raising the price still further.

Its balance sheet is sparkling after it raised cash through equity sales. Does that make GameStop stock a buy?

GameStop is likely moving higher as meme-stock and retail investors look for a big squeeze in what has been a depressed market. When they buy stocks “on margin,” they’re using borrowed money, which can supercharge their gains and losses. With options, an investor can buy the right to buy the stock at a later date at a certain price. If the stock hits that target, investors can reap a bigger return than if they simply bought a share.