GameStop, Wall Street’s most hated stock, soared again on Friday as the massive short contraction continued to fuel its explosive rebound.
Last Friday, video game stocks soared by 69.4% to a high of $72.88. This week alone, their gains have exceeded 100%. Due to high volatility, stock trading has stopped many times. The stock’s last trading price rose by about 35% to about $58.
According to the latest documents quoted by FactSet, more than 1
The stock initially rose last week after the company announced that Chewy’s co-founder and former CEO Ryan Cohen had joined the board. This news triggered a large-scale short covering, and hedge funds and other participants had to quickly make up their bets on stocks.
At the same time, the influx of retail investors has further promoted the rebound. As of early afternoon trading, more than 92 million GameStop shares changed hands, three times the 30-day average trading volume of 23.8 million shares.
According to Tuesday’s tweet, short seller Citron Research has been chanting the stock, calling these high-priced buyers “attractors of this poker game”. Citron said that GameStop will soon fall back to $20 per share.
On Friday, Yuzi said it would no longer comment on GameStop due to an attack by the “angry mob” who owns the stock.
After rising 209% last year, the stock has risen more than 250% in 2021.
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