Investor Martin Shkreli has warned his followers on X, formerly Twitter, that SharpLink Gaming (SBET) isn’t a stock worth buying. Specifically, the businessman said, “may go to 500-1000 (i bought small, do not buy).”
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Shkreli highlighted SBET stock after the shares surged this week on news that it’s creating an Ethereum (ETH) treasury. It has raised $425 million to do so through a private investment in public equity (PIPE). Investors will also keep in mind that Ethereum co-founder Joseph Lubin has joined SharpLink Gaming as its Chairman of the Board.
Shkreli’s comments on SharpLink Gaming stock carry a lot of weight. That’s due to his history as an investor and the lack of analyst coverage for SBET. This has retail traders closely watching the advice of online investing personalities to get a read on SharpLink Gaming.
Recent SBET Stock Movement
SharpLink Gaming stock movement this week has been phenomenal. The shares have rocketed 2,639.93% over the last five days, largely thanks to its Ethereum treasury announcement. That rally continued on Friday, with SBET stock rising another 12.07%.
Despite the huge interest in SBET stock, its daily active trading has hovered around 2 million shares. Shkreli shed light on this in his X post. He noted that the SharpLink Gaming float is less than 2 million shares. This is due to a registration rights agreement on the 69 million shares issued that won’t be effective for months. This leaves it with a tradable market capitalization of roughly $130 million.
Is SBET Stock a Buy, Sell, or Hold?
While analyst coverage of SharpLink Gaming is lacking, TipRanks’ AI analyst, Spark, has weighed in on the company. It offers an Underperform (40) rating for the shares and no price target. SBET stock may get more analyst coverage following its dive into Ethereum.
