Corsair Gaming: the hottest new meme stock for Wallstreet Bets?
Meme stocks are back and are continuing to be all the rage as Wallstreet Bets has potentially found their next big pump and dump. Corsair Gaming (CRSR) is an American computer hardware company that has been around since 1994. Corsair is mainly known for designing and selling a variety of high-end computer products, many of which are used for gaming. Corsair’s stock price went up 31% when the stock market opened up on Monday to $40.70 which is the company’s highest price since late February.
Corsair Gaming has been trending on the Wallstreet Bets Reddit page over the past week with the company being mentioned over 1000 times, and with everyone, with their eyes on Corsair stock, the price went up 17%. Corsair Gaming happens to be the latest of talk in the Wallstreet Bets Reddit group but this is just one of many that have been talked about over the past year. Hot meme stocks at the beginning of the year such as AMC and GME have already had their amazing run in the market and now the hype around Corsair Gaming is just getting underway.
Corsair gaming went public back in September of 1994 at a price of $15.12 a share and they were ultimately able to raise $238 Million at their IPO giving the company a total valuation of $1.6 Billion. Although the stock is currently trading at around the $35 mark there is a lot of potential for growth as this is a stock that is newly being talked about. Since IPO the company has not seen significant growth, however, this past quarter Corsair Gaming reported net revenue of $529.4 Million which is a 71.6% increase year-over-year. This is showing Corsair is heading in the right direction for growth and they were able to accomplish this due to the pandemic which caused many to stay at home and use their gaming and computer products.
Although Corsair Gaming is the new hot meme stock that Redditors are raving about there is still a lot of questions to be asked about the company and their fundamentals. It is still unclear how this will turn out as this could just be the next pump and dump rather than the stock being a disruptor in the stock market for years to come. Corsair can be thought of similarly to AMC, Blackberry, and even GameStop but it is still obscure whether or not interest around this stock will stick around long enough to see the same gains people earned from these other meme stocks. Many of Corsair’s supporters on Wallstreet Bets say that the stock is undervalued and is a hold because of its growth over the past year as well as the company’s portfolio and positioning.
Corsair has plenty of competition such as Logitech, Activision Blizzard, and even EA that are big threats to the company’s potential growth. Although Activision Blizzard and EA underperformed the S&P 500 this past year Logitech has had an amazing run with their stock price jumping 122% over the past 12 months due to their sales in webcams, phones, and gaming supplies. This offers a big threat to Corsair as Logitech is a more well-established company whose growth has been larger than any of the competition. This leaves the question as to whether Corsair Gaming is the best investment for many seeking a company with a lot of growth potential.
Will Corsair Gaming be the next Gamstop? Will the hype around Corsair fall and be forgotten? Stay tuned to find out! Follow Emerald Investment Analysts to stay up to date on all your financial news, and let us know what you think down in the comments!
Written by: Aneeshan Balakaran
