Meme stock frenzy GameStop Corp. came under spotlight again after news broke up the company is investing into non-fungible tokens which has sent the stock soaring 29% in extended trading. The share price surged since late November.
Entering the NFT space is a means to diversify the company’s brick and mortar stores of video games. Retail investors favored the stock last year which triggered large losses for hedge funds who shorted the company’s stock.
“The market loves the decision, the struggling company has bought some time by dangling NFTs in front of investors,” said Tokyo-based games industry analyst Serkan Toto to Bloomberg. “However, I am very skeptical if GameStop can make it on its own. The company definitely needs partners to compete with the likes of OpenSea and get video game companies to cooperate.”