After being left to die less than a year ago, GameStop (NYSE: GME) it returned at full strength, ending the day up 50% to a new record high of $ 65.01, after trading for around $ 2.50 per share at the beginning of last year. At one point, on Friday, the shares had risen up to 78%, before hitting the Wall Street breakers that temporarily interrupted business.
The recent race has all the marks of a small squeeze, which accelerated this week when a fight broke out between the famous short seller Citron Research and a group of investors who frequent the subreddit r / WallStreetBets. Forum members remained optimistic and even encouraged other retailers to purchase GameStop.
Image source: Getty Images.
Citron editor Andrew Left threw in the towel on Friday, posting from a Twitter says, “We will no longer comment on GameStop, not because we do not believe in our investment thesis, but rather the angry crowd that owns these shares.” He continued, claiming that several crimes had been committed and saying that his family had been “terrified”. He had previously claimed that Citron’s original Twitter account had been hacked.
Left had promised a live broadcast earlier in the week that would reveal five reasons why GameStop was going for $ 20, saying that those who bought the shares were “suckers”. After postponing the event on Wednesday, it was abruptly canceled on Thursday and replaced with a video posted on Twitter and Alphabetfrom YouTube. The video was widely criticized, with several Twitter users citing factual errors and reformulated reasoning.
Although turnover was already high yesterday, it soared today, a clear sign that short squeeze was gaining momentum. Although 55 million GameStop shares were traded yesterday, that number rose to almost 196 million today, 17 times the average volume during December.