What happened
Shares of computer gaming hardware company Corsair Gaming (CRSR 3.74%) jumped more than 10% earlier today, and remain up 8% as of noon EST. The company's shares have been on a bumpy ride since its initial public offering (IPO) in September 2020.
The stock didn't behave like a hot tech IPO when it went public on Sept. 23, 2020 and closed the day down 5%. But shares have recovered since, and received more support last night from Jim Cramer on CNBC's Mad Money.
So what
The gaming company seemed set to thrive when it went public in the midst of growth in home computer gaming and esports brought on by the pandemic. The initial negative stock reaction has since reversed and continues today with the boost from Cramer.
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Shares of Corsair are now up 74% since the late September debut. The company's gaming gear offerings include bluetooth headsets, keyboards, gaming PCs and lighting-enabled cases.
Now what
On his program, Cramer touted Corsair's 18% market share in the gaming market, and focused on the fact that it caters to high-end gamers with its high-end products. He also stressed that though the company is spending heavily on research and development, as well as marketing, it maintains a high gross margin.
Cramer highlighted the fact that the stock trades for about 1.4 times sales, while peer Logitech International's shares are valued at almost four times sales.
Investors are taking the popular stock picker at his word today, and bumping Corsair shares up even further.
