Is $FAZE The Next Meme Stock?
A leader in the growing esports scene, FaZe Holdings Inc. (NASDAQ: FAZE) is one of the hottest stocks right now following its SPAC merger with B. Riley Principal 150 Merger Corp. With the stock witnessing high short selling action, many investors have been taking notice of FAZE stock as an emerging short squeeze play. For this reason, FAZE stock recently ran to $15 on a high trading volume of more than 11 million. As speculations regarding a short squeeze continue to gain momentum, many investors are bullish FAZE stock could be the next meme stock and replicate the runs of GME and AMC.
FAZE Fundamentals
With gaming and esports becoming more and more popular, FAZE has been at the forefront of this growing industry through its gaming content. Through its content, FAZE attracted more than 500 million followers across social platforms – establishing the company as the most renowned esports companies in the world. As 80% of the company’s followers are Gen Z and millennials, FAZE was able to monetize its wide fan base by striking sponsorships with companies looking to reach this population.
At the same time, FAZE successfully signed sponsorships with several blue chip companies like McDonald’s, Nissan, Disney, DC Comics, and others. Meanwhile, FAZE has been adding celebrities to its roster to increase fan engagement. These celebrities include Kyler Murray, Lil Yachty, Lebron James Jr, as well as Snoop Dogg who is also a director on FAZE’s board.
Thanks to its major following, FAZE grew from an esports organization to a highly demanded fashion and lifestyle brand with apparel lines and limited edition collaborations with NFL, Manchester City FC, Kappa, and LA Kings. Moreover, a major revenue stream for the company is its tournament earnings. This is mainly due to FAZE’s status as a leader across several esports especially Call of Duty and Counter Strike: Global-Offensive. According to Esports Earnings, FAZE’s Call of Duty team generated more than $1.5 million and its CS:GO team earned $5.5 million for their wins. As a result, FAZE generated $38 million in 2020 and was expected to realize $50 million in revenues in 2021.
With this in mind, FAZE has the potential to further grow its revenues in the growing esports market if it is able to monetize its viewership. Currently, there are more than 530 million esports spectators which are projected to grow 6% annually. At the same time, the global video streaming market is expected to grow at a CAGR of 21% until 2028. With esports and gaming continuing to gain more popularity from viewers, FAZE could be well-positioned to further bolster its financials if it is able to monetize this untapped revenue stream.
Despite the company’s ability to generate revenues, FAZE only had $50 thousand in cash. For this reason, the company seeked to publicly list through a SPAC merger with B. Riley Principal 150 Merger Corp to improve its liquidity situation. By combining its business with BRPM, FAZE had an equity value of almost $1 billion including $275 million in cash.
Through these proceeds, FAZE intends to fund the expansion of its digital presence globally across gaming, entertainment, consumer products, and the metaverse. Additionally, the company intends to use these funds in pursuing acquisition opportunities to strengthen its financials. Based on this, FAZE has the potential to diversify its revenue streams while expanding its global footprint. Considering the potential of these ambitious plans, FAZE stock could be one to hold in anticipation of the roll out of these plans.
Although the company’s plans have the potential to significantly grow its business, FAZE stock has been witnessing a high short selling activity since its listing. According to Ortex data, there 1.23 million shares short. Moreover, utilization rate is high at 98.8% and cost to borrow is at 174.3%. In light of these data, many investors are confident FAZE stock could witness a short squeeze in the near future. With this in mind, FAZE stock recently reached $15 on a high trading volume of 11.4 million. Based on these numbers, FAZE stock could be one to watch closely in case a short squeeze occurs.
Technical Analysis
FAZE stock is currently trading at $12.42 and has supports at 11.58, 10.46, and 9.41. The stock also shows resistances near 12.67 and 14. With the stock gaining momentum as a potential short squeeze play, FAZE climbed by as much as 57% to reach $15 on a high trading volume of 11.4 million. On the 5 minute chart, FAZE stock dropped below its VWAP and MA to retest its support near $11.6. Considering that the stock bounced off this support, FAZE stock could be well-positioned for a continuation if it continues witnessing high volume.
In light of FAZE’s impressive run, accumulation is trending downwards mainly due to investors taking profit. Meanwhile, the MACD is bullish to the upside. The RSI recently climbed from 32 to 52 indicating that FAZE stock has enough room to run. With this in mind, FAZE stock has an OS of 72.3 million and a low float near 1.3 million since 15.8 million shares were redeemed.
FAZE Forecast
As the company is seeking further growth to its business, FAZE’s SPAC listing could allow the company to achieve its growth strategy. With this in mind, FAZE is already profitable with the company previously projecting $50 million in revenues for 2021. Meanwhile, the company’s plans to explore acquisition opportunities could help the company diversify its revenue streams since FAZE is mainly reliant on tournament wins and sponsorships for revenues.
In the short-term, FAZE stock presents an opportunity for massive gains thanks to its short squeeze potential. With this in mind, FAZE could be poised for continuation if it witnesses similar volume in the coming days. Based on this, FAZE stock is one to watch this week for any massive runs.
FAZE Fundamentals
With gaming and esports becoming more and more popular, FAZE has been at the forefront of this growing industry through its gaming content. Through its content, FAZE attracted more than 500 million followers across social platforms – establishing the company as the most renowned esports companies in the world. As 80% of the company’s followers are Gen Z and millennials, FAZE was able to monetize its wide fan base by striking sponsorships with companies looking to reach this population.
At the same time, FAZE successfully signed sponsorships with several blue chip companies like McDonald’s, Nissan, Disney, DC Comics, and others. Meanwhile, FAZE has been adding celebrities to its roster to increase fan engagement. These celebrities include Kyler Murray, Lil Yachty, Lebron James Jr, as well as Snoop Dogg who is also a director on FAZE’s board.
Thanks to its major following, FAZE grew from an esports organization to a highly demanded fashion and lifestyle brand with apparel lines and limited edition collaborations with NFL, Manchester City FC, Kappa, and LA Kings. Moreover, a major revenue stream for the company is its tournament earnings. This is mainly due to FAZE’s status as a leader across several esports especially Call of Duty and Counter Strike: Global-Offensive. According to Esports Earnings, FAZE’s Call of Duty team generated more than $1.5 million and its CS:GO team earned $5.5 million for their wins. As a result, FAZE generated $38 million in 2020 and was expected to realize $50 million in revenues in 2021.
With this in mind, FAZE has the potential to further grow its revenues in the growing esports market if it is able to monetize its viewership. Currently, there are more than 530 million esports spectators which are projected to grow 6% annually. At the same time, the global video streaming market is expected to grow at a CAGR of 21% until 2028. With esports and gaming continuing to gain more popularity from viewers, FAZE could be well-positioned to further bolster its financials if it is able to monetize this untapped revenue stream.
Despite the company’s ability to generate revenues, FAZE only had $50 thousand in cash. For this reason, the company seeked to publicly list through a SPAC merger with B. Riley Principal 150 Merger Corp to improve its liquidity situation. By combining its business with BRPM, FAZE had an equity value of almost $1 billion including $275 million in cash.
Through these proceeds, FAZE intends to fund the expansion of its digital presence globally across gaming, entertainment, consumer products, and the metaverse. Additionally, the company intends to use these funds in pursuing acquisition opportunities to strengthen its financials. Based on this, FAZE has the potential to diversify its revenue streams while expanding its global footprint. Considering the potential of these ambitious plans, FAZE stock could be one to hold in anticipation of the roll out of these plans.
Although the company’s plans have the potential to significantly grow its business, FAZE stock has been witnessing a high short selling activity since its listing. According to Ortex data, there 1.23 million shares short. Moreover, utilization rate is high at 98.8% and cost to borrow is at 174.3%. In light of these data, many investors are confident FAZE stock could witness a short squeeze in the near future. With this in mind, FAZE stock recently reached $15 on a high trading volume of 11.4 million. Based on these numbers, FAZE stock could be one to watch closely in case a short squeeze occurs.
Technical Analysis
FAZE stock is currently trading at $12.42 and has supports at 11.58, 10.46, and 9.41. The stock also shows resistances near 12.67 and 14. With the stock gaining momentum as a potential short squeeze play, FAZE climbed by as much as 57% to reach $15 on a high trading volume of 11.4 million. On the 5 minute chart, FAZE stock dropped below its VWAP and MA to retest its support near $11.6. Considering that the stock bounced off this support, FAZE stock could be well-positioned for a continuation if it continues witnessing high volume.
In light of FAZE’s impressive run, accumulation is trending downwards mainly due to investors taking profit. Meanwhile, the MACD is bullish to the upside. The RSI recently climbed from 32 to 52 indicating that FAZE stock has enough room to run. With this in mind, FAZE stock has an OS of 72.3 million and a low float near 1.3 million since 15.8 million shares were redeemed.
FAZE Forecast
As the company is seeking further growth to its business, FAZE’s SPAC listing could allow the company to achieve its growth strategy. With this in mind, FAZE is already profitable with the company previously projecting $50 million in revenues for 2021. Meanwhile, the company’s plans to explore acquisition opportunities could help the company diversify its revenue streams since FAZE is mainly reliant on tournament wins and sponsorships for revenues.
In the short-term, FAZE stock presents an opportunity for massive gains thanks to its short squeeze potential. With this in mind, FAZE could be poised for continuation if it witnesses similar volume in the coming days. Based on this, FAZE stock is one to watch this week for any massive runs.
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