WallStreetBets declares victory as GameStop action climbs over 50%



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After being left for dead less than a year ago, GameStop (NYSE: GME) came back strong, ending the day up 50% to a new high of $ 65.01, after trading around $ 2.50 per share early last year. At one point on Friday, stocks had gained as much as 78%, before tripping Wall Street circuit breakers who temporarily halted trading.

The recent ramp-up has all the hallmarks of a short crunch, which accelerated this week when a dispute broke out between notorious short seller Citron Research and a group of investors who frequent the r / subreddit. WallStreetBets. Forum members remained optimistic and even encouraged other retailers to buy GameStop.

A graphical arrow that climbs steadily with a $ 100 bill as a backdrop.

Image source: Getty Images.

Citron editor-in-chief Andrew Left threw in the towel on Friday, posting a Twitter “We won’t be commenting on GameStop anymore, not because we don’t believe our investment thesis but rather the angry mob that owns this title.” He went on to claim that a number of crimes had been committed and that his family had been “terrorized”. He had previously alleged that Citron’s original Twitter account was hacked.

Left had promised a live event earlier in the week in which he would reveal five reasons why GameStop was going for $ 20, claiming those who bought the title were “suckers.” After postponing the event on Wednesday, it was abruptly canceled on Thursday and replaced with a video posted to Twitter and AlphabetYoutube. The video was widely vilified, with a number of Twitter users citing factual errors and rephrasing their reasoning.

While the volume of trade was already high yesterday, it exploded today, a clear sign that short term pressure is gaining ground. While 55 million GameStop shares traded hands yesterday, that number has risen to nearly 196 million today, 17 times that average volume during the month of December.



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