Shares of Hall of Fame Resort & Entertainment ((NASDAQ: HOFV) according to data from in April fell by 18.3% S&P Global Market Intelligence. The stock made big gains thanks to the excitement of entering non-fungible tokens (NFTs), but the NFT craze seemed to cool somewhat over the last month and some companies with significant exposure to the space saw their valuations decline.
The core business of Hall of Fame Resort & Entertainment is turning around Soccer-related recreational and entertainment experiences, but the company’s foray into the NFT space actually created more excitement. The stock rose 119% in March as the company’s association with the Pro Football Hall of Fame was expected to aid its foray into the NFT space. However, there has been no major news on that front in the last month and it looks like the bulls will be taking a breather after the big wins.
The Hall of Fame Resort & Entertainment Co. was founded last year as part of a merger between HOF Village, the Pro Football Hall of Fame, the Industrial Realty Group and Gordon Pointe Acquisition Corp. founded. Significant NFT initiatives were likely not part of the company’s original business plan, interest in the new form of digital collectibles has led management to take significant initiatives in this area. This has helped the stock attract investors, but the speculative nature of the NFT space also prepares Hall of Fame Resort & Entertainment for volatile trading.
Hall of Fame shares continued to decline in May trading. The company’s share price has fallen by around 19.5% in the month to date.
The resort side of the business has been put under pressure by the coronavirus pandemic, and that leaves speculation about growth opportunities in the NFT space as well. Despite the recent excitement over digital collectibles, the company’s share price has fallen approximately 65% from the close of the market on the day of its initial public offering by a special-purpose acquisition company (SPAC) Merger in July 2020.
Hall of Fame Resort & Entertainment has a market capitalization of approximately $ 311 million and is valued at 8.9 times this year’s expected revenue.
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