GameStop Corp. shares they reversed their course on Monday, retreating from their record weekly gain after more than half of the short positions in shares were eliminated.
GameStop GME,
stocks fell by up to 35% on Monday’s trading session, and in the past they fell by around 23% to $ 251.31. The volume was at more than 24 million shares at noon. In the last 10 trading sessions, the daily volume averaged 92.2 million shares, and an average of 11 million shares per day for the past 52 weeks.
Last week, GameStop’s stock soared 400% in an extremely volatile trading week, in which retail investors loyal to the shares gathered through the topic Reddit WallStreetBets clashed with institutional short sellers on Wall Street.
Ihor Dusaniwsky – the head of predictive analytics at technology and financial analytics firm S3 Partners, which specializes in analyzing short sales data – said on Monday that “short squeeze started” on GameStop, although some speculated that a short squeeze it was boosting the stock in mid-January.
The number of GameStop shares sold fell 35.2 million last week, leaving 27.1 million short positions remaining. The shorts lost more than $ 13 billion in 2021 at GameStop alone, even after winning $ 1.9 billion in Monday’s recession, Dusaniwsky said.
“Both fundamental and momentum short sellers have found opportunities and price exit points to reduce their positions in the face of these losses, since the GME squeeze is in full force,” said Dusaniwsky in e-mail comments.
In the meantime, the action is likely to be said in conjunction with GameStop, AMC Entertainment Holdings Inc. AMC,
it rose about 7% to $ 14.14, even when an analyst downgraded the stock to a sell rating and cut its target price to $ 1.