GameStop Drama Continues: Soaring Stock Halted, Cramer, Citron Weigh In

The volatility surrounding GameStop Corp. GME, AMC Entertainment Holdings Inc AMC and other so-called meme stocks continued Thursday, with GameStop shares soaring in early trading, triggering multiple halts by the NYSE.

Several prominent experts and analysts have also weighed in with strong opinions on the GameStop situation, including CNBC’s Jim Cramer and Citron Research founder Andrew Left.

The Latest On GameStop: After more than doubling and closing Wednesday’s session at $91.70, GameStop shares traded as high as $170.01 Thursday morning, triggering multiple circuit breaker trading halts by the NYSE.

Related Link: Charlie Munger Talks Bitcoin, SPACs And GameStop Mania: 'It Must End Badly, But I Don't Know When'

The resurgence in GameStop shares comes after Chief Financial Office Jim Bell announced his resignation Tuesday.

Subsequent reports suggest GameStop investor and Chewy Inc CHWY co-founder Ryan Cohen was behind Bell’s exit.

Cohen and GameStop have been silent on the news up to this point aside from a cryptic tweet from Cohen of a Mcdonald's Corp MCD ice cream cone on Wednesday afternoon.

GameStop short sellers reportedly lost an estimated $818 million on Wednesday, according to ORTEX.

Cramer Goes Off On GameStop: CNBC analyst Jim Cramer went on a Twitter tirade against the price action in WallStreetBets meme stocks on Wednesday evening and Thursday morning.

If the SEC does not take action to prevent market manipulation in GameStop, retail traders could lose trust in the market, he said. 

“I want the government involved because when prices have no meaning people will leave the market,” Cramer tweeted Wednesday. “We want honest markets but we can't make them honest w/o enforcement.

“Every time people think the market is rigged, millions leave it. Then stocks stall or go down.”

Cramer also issued a proposal for GameStop’s board to help turn around the company’s struggling underlying video game business. Cramer recommended the company sell 10 million shares of stock at $200 per share and buy Bitcoin BTC/USD.

GameStop could then become a Bitcoin store at which customers could bet on video game players using Bitcoin, he said. 

Citron’s Take On GameStop: Citron Research editor Andrew Left has taken a lot of heat from critics since taking a short position and setting a $20 price target for GameStop in January.

Following the initial surge in GameStop and alleged threats against his family from GameStop traders, the longtime activist short-seller recently said he will no longer be issuing short reports.

On Thursday, Left issued his own recommendation for the GameStop board, advising them to consider a takeover of Esports Entertainment Group Inc GMBL.

“There is one way for GME to seamlessly both pivot away from its secularly declining retail business and monetize its customer database, and that answer is to acquire Esports Entertainment Group,” Left said.

“Instead of selling these people low margin hardware and video games, GME should become the software and more important the BETTING platform for their gamers to compete in and bet on ESports. Citron urges GameStop — listen to what your customers are telling you, embrace it.”

Left said he exited the majority of his short position in late January, but his new price target of $50 for the stock represents about 62% downside from current levels.

GME Price Action: GameStop shares were trading 45.57% higher at $133.49 at last check Thursday. 

Benzinga’s Take: GameStop stock is the front lines of a massive war involving Wall Street, hedge funds, WallStreetBets, short sellers, retail option traders, Robinhood, Citadel, Congress and the SEC. Investors looking for smart long-term investments should look elsewhere given all the uncertainty wrapped up in GameStop at this point.

Traders and gamblers looking to go all in on a stock that could either go to the moon, back under $20 or anywhere in between in the next few weeks have found the perfect stock for their daily adrenaline rush.