GameStop is up virtually 70% and buying and selling has been quickly stopped
Wall Street’s most hated stock, GameStop, rose again on Friday as the massive short squeeze fueled its explosive rally.
Video game stock rose 69.4% on Friday to a high of $ 72.88, bringing its gains over 100% this week alone. Trading in shares was temporarily stopped due to the high volatility. The stock recently rose 35% to around $ 58.
GameStop has sold more than 138% of its float stocks as short sales, according to FactSet. This is the most abbreviated name on the US exchange, according to FactSet.
The stock initially rose last week after the company announced that Chewy’s co-founder and former CEO Ryan Cohen was joining its board of directors. The news sparked massive short coverage, with hedge funds and other players rushing in to cover their bets against the stock.
In the meantime, private investors also accumulated, which further fueled the rally. By early afternoon trading, more than 92 million GameStop shares had changed hands, quadrupling the 30-day trading volume from an average of 23.8 million
Short seller Citron Research was vocal about the stock, saying buyers at these elevated levels are “the fools of this game of poker,” according to a Tuesday tweet. Citron said GameStop will “quickly” fall back to $ 20 a share.
On Friday, Citron said GameStop would no longer be commented on due to attacks by the “angry mob” who own the stock.
The stock rose more than 250% in 2021 after rallying 209% last year.
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