Gamestop stock rises sharply amid "short squeeze"



Shares of U.S. videogame retailer GameStop were up by over 100% in trading on Monday, on course to reach another record high after having already gained about 250% since the beginning of the year.

Traders believe that the reasons for the jump in the shares are short-sellers quickly buying back into the stock to cover potential losses, defined as a short-squeeze, and retail investors piling in to benefit from the surge.

The short betting was pretty evident with 100% of the shares available to borrow to speculate against the company already out on loan, FIS’ Astec analytics data as of Friday showed.

Short sellers typically borrow and sell shares in companies they expect will fall in price, hoping to buy them back at a lower price and pocket the difference.

The trading strategy is high risk in that losses are theoretically unlimited when the stock rises instead of falling.

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40 thoughts on “Gamestop stock rises sharply amid "short squeeze"”

  1. As a gamer, I wouldn't buy Game Stop stock right now…
    PC's supremacy in gaming has never been more prevalent then it's current state… Game Stop can't even sell the worlds top game because it ONLY works on PC. So yeah If your going to invest in gaming you should invest in gaming PC shops…

    Reply
  2. You are missing the point. The market is manipulated and many investors woke up and did the opposite as main traders recommended. This is the result. It’s investor non-compliance and the big manipulators are panicking and trying to shut it down, but you can’t stop people from waking up and you can’t stop an idea that’s time has come.

    Reply
  3. Of all the "isms" communism is the only really actually factually oppressive and evil unnatural thing that's at war with your rights, your thoughts, cultures and respective races

    Reply
  4. No mention at all of the fact that short sellers are trying to crush gamestop? Seriously cbc? Your just leaving that part out of the story, hoping nobody will notice what's really going on? Journalistic integrity?

    Reply
  5. Global, why do you try so hard? You’re like the out of touch drug addict uncle nobody wants at the family gatherings but you keep telling everyone you can do magic.. but you know one lame card trick.. and nobody cares.

    Reply
  6. WOW – when did retail small investors get the power to move stocks big time ? Its definitely big Sharks behind this fraud game. Part of the fraud is media trying to pin this on small players

    Reply
  7. The entire world is watching the next moves in GameStop Corp. The sensational stock is now seen as emblematic of a late-stage rally in Wall Street. There’s a lot of money flowing into the stock market and investors should invest more money like never before.

    Reply

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