Wicked game

25 January 2021 By John Foley Follow @johnsfoley

An army of option-toting armchair investors turned the U.S. video-game retailer from uber-short to overbought, its shares quadrupling in a week. Regulators and executives often blast short-sellers for profiting from corporate misery. The opposite phenomenon is just as unhealthy.

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Shares in U.S. video-game retailer GameStop rose as much as 141% on Jan. 25, before giving up the bulk of those gains.

GameStop, whose shares had been heavily sold short, soared more than 50% on Jan. 13, days after the company said it had made new appointments to its board as part of a pivot towards online sales, and rose further last week including another 50% gain on Jan. 22.

The company’s shares were trading at around $76 at 2 p.m. EST on Jan. 25, more than 15% above their closing price on Jan. 22. The median target price among eight analysts tracked by Refinitiv is $12.50, and the shares closed below $20 on every trading day in 2021 through Jan. 12.

Citron Research founder Andrew Left published a video on Jan. 21 in which he gave five reasons the stock would fall back to $20.

Context News

Shares in U.S. video-game retailer GameStop rose as much as 141% on Jan. 25, before giving up the bulk of those gains.

Citron Research founder Andrew Left published a video on Jan. 21 in which he gave five reasons the stock would fall back to $20.

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