Skip to main content

Morning Bell With Jim Cramer: GameStop Can Go Crypto

GameStop has 'to go outside their basic framework,' Jim Cramer says, as the videogame retailer prepares to report earnings.

Stock futures on Wednesday were wavering one day after the S&P 500 ended just short of a record close.

Meme-stock favorite GameStop  (GME) is scheduled to report first-quarter earnings Wednesday after the bell.

The Grapevine, Texas, videogame retailer's shares at last check were up 1.4% and have soared by a factor of 15 year to date.

Last month, Founder Jim Cramer recommended against selling the stock. 

TheStreet's senior portfolio analyst, Jeff Marks, spoke with Cramer to get his thoughts on the company's future.

GameStop Stock: Buy or Sell?

"I have offered idea after idea," Cramer said. "I have offered so many ideas, including one where they can be a crypto bank because they're in so many stores."

Cramer said GameStop "could easily become the locus for games worldwide for contests in which you'd pay and, of course, you'd win Bitcoin."

GameStop's chairman, Ryan Cohen, "has been playing his cards very close to the vest," Cramer noted, "and I've been saying I would keep them there until it's done." 

Scroll to Continue

TheStreet Recommends

Sell in June for the Anticipated Market Swoon?: RealMoney's Kass

"In other words," Cramer said, "if you want to get this stock going higher, just say 'I'm working on something' because the moment he does something, unless it's crypto, it ain't going anywhere."

Cramer said that GameStop could do a subscription business for all the games, "but Microsoft  (MSFT)  has that already."

"So they have to go outside their basic framework," he said, "and make it so that there's all these different crypto coins and you can be the crypto bank and the next thing you know, you get a bid from Visa  (V)  for $50 billion, so there's your plan."

On Monday Telsey Advisory Group halted coverage of the company as it reconsiders which companies it will follow.

What Jim Cramer Wants to Hear From GameStop in Report

And Wedbush analyst Michael Pachter reiterated his underperform rating and $39 price target on the stock.

Pachter views the stock's surge as way overdone. "The short squeeze and retail investor enthusiasm seen in recent months have spiked the share price to levels that are disconnected from the fundamentals of the business," he said. 

Microsoft is a holding in Jim Cramer's Action Alerts PLUS member club. Want to be alerted before Jim Cramer buys or sells MSFT? Learn more now.