Wall Street’s most hated stock, GameStop, rose again on Friday, while the massive squeeze on sales continued to fuel its explosive high.
The video game stock rose 69.4% to $ 72.88 on Friday, bringing its earnings to more than 100% this week alone. Stock trading was briefly interrupted due to high volatility. The last stock trade rose about 35% to about $ 58.
GameStop has more than 138% of its shares short, the best-selling name on the US stock market, according to FactSet citing the latest records.
Shares initially rose last week after the company announced that Chewy co-founder and former CEO Ryan Cohen is joining its board. The news triggered massive sales coverage in which hedge funds and other players had to rush to cover their bets against the stock.
Meanwhile, retail investors have also piled up, further fueling the recovery. In the early afternoon trading, more than 92 million GameStop shares changed hands, quadrupling their average 30-day trading volume of 23.8 million.
Short-seller Citron Research has been vocal about the stocks, saying that buyers at these high levels are “the suckers in this poker game,” according to a tweet on Tuesday. Citron said GameStop will drop to $ 20 a share “fast”.
On Friday, Citron said it would no longer comment on GameStop because of the attacks by the “angry crowd” that owns the shares.
The stock rose more than 250% in 2021, after a 209% rise last year.
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