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The soaring record in the GameStop war allowed the Reddit army to win



(Bloomberg)-In the battle between the short-selling Citron Research and a day trader led by Reddit, GameStop Corp. seemed to rebound endlessly to an all-time high, giving the stock’s longs a victory, despite Not without controversy.

According to data compiled by Bloomberg, as of Friday, GameStop’s 105% increase was more than double the previous week’s, and it was the most unstable 10-day period on record. The stock rose 70% in New York, to $73.09, after two suspensions.

GameStop’s parabolic rise was carried out in the context of steady and increased short interest and increased trading volume, which showed the gap between retail longs and shorts who are optimistic about a quick return to reality.

On Friday, some short-selling Reddit users met with strong opposition to Citron̵

7;s views on GameStop, when short-sellers said they would stop commenting on the stock after the “angry mob” action.

Citron’s managing partner Andrew Left wrote in a letter on Friday: “We are investors who put safety and family first. When we think this has been compromised, we have a responsibility to give up stock.”

The statement was made the next day after the left-hander said in a YouTube video. He said that “he has never seen such an exchange of opinions feel so angry at someone joining the other side of the transaction”, partly referring to Reddit users socializing Media websites seek to improve their positive evaluation of video game retailer stocks.

According to data compiled by Bloomberg, GameStop has risen by 287% as of January this year, and its average daily rolling 10-day volatility has reached the highest level of the stock trading in nearly two decades. Friday’s shocking rally pushed its market value to more than $5 billion.

A GameStop representative did not immediately return an email seeking comment.

Following the broadcast of the legend this week, after short sellers criticized the stock on Twitter on Tuesday and made plans for the next day of Twitter Inc. live broadcast, GameStop fans clashed with Citron. The event was initially postponed due to the inauguration of President Joe Biden, and then postponed again on Thursday due to an attempt to hack the short seller’s Twitter account.

On Thursday afternoon, Left posted a video on YouTube in which he discussed the company and explained in detail that he believes the stock price of the Grapevine, Texas company will “return to $20.” “Five reasons. This is less than one-third of the $72.82 when the stock triggered a volatility pause at 12:43 pm last Friday.

Wall Street analysts have remained largely silent against the backdrop of recent volatility in the stock. CFRA Research analyst Camilla Yanushevsky reiterated her sell rating on January 15 and added activist investor and Chewy Inc. co-founder Ryan Cohen to GameStop’s board of directors, owing most of last week’s gains to short-lived Squeeze.

According to data collected by S3 Partners, short bets have remained stable, with 140% of the available GameStop stocks currently being sold short. According to data from a financial analysis company, this year’s short market value loss exceeded $1.74 billion.

“Due to the short contraction based on the loss of profits, the existing older short positions have filled some of their positions, but the new round of short positions hopes to be short in GME after the recent rise,” S3 manager Ihor Dusaniwsky forecast analysis Said the director.

(After adding stock trading in the second paragraph, it was suspended twice)

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