Thursday , February 25 2021

GameStop is up about 70% and trading briefly stalled amid the epic short contraction

GameStop, Wall Street’s most hated stock, rebounded as the big short press continued to fuel the explosive rally on Friday.

Video game shares surged 69.4% on Friday to $ 72.88, and this week alone pushed earnings above 100%. Stock trading was suspended for a short time due to high volatility. The stock most recently rose about 35% to $ 58.

According to FactSet, according to recent applications, more than 138% of GameStop’s publicly traded shares hold offshore shares, the shortest-running only name on the US stock market.

The stock initially soared after the company announced that Chewy co-founder and former CEO Ryan Cohen would join the board. The news triggered massive short stories where hedge funds and other players had to rush to meet their bets against the stock.

Meanwhile, retail investors also gathered, increasing the rally even further. In the afternoon trading, more than 92 million GameStop shares changed hands, quadrupling the average 30-day trading volume of 23.8 million.

Short-selling Citron Research spoke about the stock, saying these high-end buyers are “suckers in this poker game,” according to a tweet Tuesday. Citron said GameStop will drop to $ 20 “fast” per share.

On Friday, Citron said it would no longer comment on GameStop due to attacks by the “angry mob”, which owns the stock.

Stock increased more than 250% in 2021, following a 209% rally last year.

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