It turned to Steven Cohen of Point72 Capital and Chicago-based Citadel to bail it out. That restricted trading in GME stock, as well as other heavily shorted securities like AMC (NYSE:AMC) stock. Jim Cramer Explains GameStop Short Squeeze, What It Says About Stock Market Monday In Monday's stock market breakdown, Jim Cramer explains the … Over the span of a few days, hedge funds lost around $30 billion by betting against Volkswagen (OTCPK:VWAGY), as they were also caught in the middle of a short squeeze. In the case of GME, it appears brokers for hedge fund traders lent shares they didn’t have. That’s not only because prominent shorts like Melvin Capital and Citron Research covered their positions at a heavy loss. Why GameStop Won’t Stop as Short Squeeze Continues Indefinitely, Why GME, EXPR, AMC, KOSS and NAKD Stocks Were Moving Today >>> READ MORE, 7 Growth Stocks That Won’t Be Stopped in 2021, Things Are About to Get Interesting for Zomedica, Louis Navellier and the InvestorPlace Research Staff. That play is unlikely, although it is not impossible. Log in or sign up to leave a comment Log In Sign Up. That’s potential downside of over 90%. This brought the overall short interest ratio down from about 88% to about 30%. Whether you profited from this short squeeze or not, it’s time to move on. GameStop GME fluctuates as stock markets battle ‘biggest short squeeze’ in decades The GameStop saga is far from over. Rooms Shows Rankings Earnings Calendar Shop. However, those who got in well after the shares entered triple-digits should brace for impact. The media reported that the fund, which did not live up to its name of “hedging,” closed its GameStop short position. DOW 0.00%. 1125 N. Charles St, Baltimore, MD 21201. For those with a healthy appetite for risk, though, there are other picks out there. I am not trying to pump this stock because … Comparing it to the recent price, they may bet that a squeeze will send the stock to the $1,000 range next. Jan 26, 2021 | 0 comments. That requires stockholders in Reddit’s subreddit, WallStreetBets, or WSB for short, losing money. Be the first to share what you think! This happens. The media is honing in on several stocks that Robinhood restricted trading on. The “short squeeze saga” with GameStop (NYSE:GME) stock is coming to a close. Potentially. The poster child of the short squeeze trade, video game retailer GameStop Corp. (NYSE: GME), traded as high as $159.18 on Monday before dropping back below $79. Follow. Shares of GameStop (NASDAQ: GME) skyrocketed to all-time highs for the second day in a row as a short squeeze triggered prices to jump 145% to $159.18 before settling all the way down to close the… Today's FINRA Short Interest report shows that between January 15 and January 29, the hedge funds who had shorted GME were able to buy back more than 40 million shares to cover most of their positions. The brokers made this call — at the behest of whom, we still don’t know. Outside investors who do not understand WSB will criticize them as speculators seeking gains. In this video we are going over AMC stock, GME stock, the short squeeze and whether or not it is over. hide. Admittedly, on Jan. 31, I did argue that interest in that stock could fall “to the back-burner” soon. The short-squeeze play continues for longer than bears would like. The media, along with the hedge funds betting against GME stock, appear to want the gaming retailer to fail. BlackBerry is amid a turnaround away from the smartphone business. It’s one of those confluence-of-events types of scenarios where everything’s set up just so, and the setup is … I also want everyone to know that is is meant to be a dialog. Sort by. All rights reserved. The coordinated GME short squeeze involved people buying the stock plus cheap out-of-the-money call options. I keep receiving some hate concerning my opinions and I want to be crystal clear that they are just that; opinions. The stockholders in that group will buy the stock as an admission ticket to bring down short-sellers. These are heavily shorted names with other factors working in their favor. ... that this is a thing and it’s a theory that has been proven that those guys over there can actually move stop based upon all of them buying it pretty much. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. I got notification for headline saying that on sofi but idk if it’s true or not. But, if the short-squeeze trade ends sooner than expected, we could see retail money return to this name. This forces short sellers to cover their short interest positions by buying actual shares of GME, which in turn drives the price of the stock up even further. There could be big gains for short-term buyers, but long-term investors should stay away. This is nowhere near that of the short float on GameStock. Josh Kreuger will join as VP of fulfillment. Short sellers bought to cover and trimmed positions as they incurred large mark-to-market losses. There’s no simple reason that Gamestop (NYSE: GME) became the subject of the most high-profile short squeeze anyone can remember. As a result, shares will likely head back to prior prices, at around $15 to $20 per share. Will the Securities and Exchange Commission look at the legality of such a move? The “short squeeze saga” with GameStop (NYSE:GME) stock is coming to a close. Earlier, I talked about the short squeeze and the high short interest in GameStop that will drive up its share price. There are better trading opportunities opening up on the market, so it’s best to stay away from GME stock. This is my question about this whole thing about GME’s potential squeeze so please educate me. Article printed from InvestorPlace Media, https://investorplace.com/2021/02/gme-stock-game-over-epic-short-squeeze-gamestop/. If true, the firm could have realized the maximum loss. But for that to happen, the hedge fund sellers will have to close their positions at a huge loss and buy up shares in bulk. The GameStop Short Squeeze Accelerates Trading of the shares in the video game retailer were temporarily halted due to volatility today. 100% Upvoted . 7 Robinhood Stocks To Buy for Your Penny Stocks Portfolio, As the Bubble Deflates, Churchill Capital IV Stock Will Get Interesting. On the other hand, the scores of small investors who dived into GME stock once it started making headlines may not be as fortunate. 0 comments. But if long shareholders see the tumbling stock as a new buying opportunity, we may be at the start of part deux of the GME short squeeze. ET It's possible the squeeze is not over. What am I talking about? It seems clear that this short squeeze is over. GME price volatility has been remarkably high, and the stock has gained +400% over the last week. And stay away if you missed first phase of this historic squeeze. If it had waited a few more days, it could have covered the stock in the low $50 range. best. To start off 2021, GameStop Corp. (Ticker: GME), a brick-and-mortar retail establishment focused on video games and electronics, has been the subject of a short squeeze.This is said to be started by r/WallStreetBets, an approximately 3.1 million user subreddit group, and is egged on by billionaires such as Elon Musk and Chamath Palihapitiya on Twitter. Squeeze Likely Over. So different sources all reporting different % of float vs different quantities. An epic short squeeze in video game retailer GameStop (GME), fueled by collaborative retail investing, suggests the market could be in for quite the ride in 2021. Absolutely not . Today's FINRA Short Interest report shows that between January 15 and January 29, the hedge funds who had shorted GME were able to buy back more than 40 million shares to cover most of their positions. If the short sale volume increases as a percentage of the total volume, then that suggests a bearish (negative) sentiment by the market. And, while this has been touted as a tale of retail investors beating the pros at their own game, unfortunately it may be the small investors that get left holding the bag once it’s all said and done. Strap in. At the time of this recording, GME price was trading around the $65.00 price level – down almost 80% from the Jan 28th highs suggesting that the short squeeze is now over. This is a “short squeeze”. Chris has over 20 years of investing experience in the stock market and runs the Do-It-Yourself Value Investing Marketplace on Seeking Alpha. To be clear, the SEC did not stop trading on GME. Those who got in early may be able to cash out. Yes, short interest remains relatively high, recently reported at about 39%. All rights reserved. GME Short Squeeze What Comes Next Part 3 Hello all, Before I begin I would like to address something I have been encountering on my posts in the comments section. WSB’s squeeze play involves one premise: liking the stock and holding it indefinitely. Bed Bath & Beyond (BBBY) BBBY fits many of the same parameters as GME. Citron Research's Andrew Left said he was abandoning the trade "at a loss 100%." GME shares shorted are now 27.13 million. I think the subsequent trading halts were a way to prevent this illegal activity from coming into the light. Short Volume is a data set that can be used to understand investor sentiment. Currently long GME. And the … Continued The short-squeeze play continues for longer than bears would like. Will the squeeze be sqoze? Despite many on Reddit’s now infamous subreddit, r/WallStreetBets (WSB), vowing to “hold the line” with “diamond hands,” it’s clear that many small investors who got in early have already taken profit. Dogecoin Price Predictions: What Does #DogecoinRise Mean for DOGE? Cancel. Sure, a few speculators saw GameStop’s 52-week high of $347.51. Here's my plan. quotes delayed at least 15 minutes, all others at least 20 minutes. I also want everyone to know that is is meant to be a dialog. Investors should look for stocks with improving fundamentals, high short floats, and looming catalysts. GAME STOP SHORT SQUEEZE So buy now, if you follow financial news, or internet news, of watch late night tv, GME OVER - How r/wallstreetbets put the Short Squeeze on Hedge Fund BigBoys - … Currently long GME. This model applies a revenue exit multiple to calculate terminal value after five years. She will join as the senior vice president of customer care. Let me try to shed some light on the situation, it's a fun story. As you may know, major platforms like Robinhood, TD Ameritrade and Interactive Brokers (NASDAQ:IBKR) placed restrictions, too. Copyright © 2021 InvestorPlace Media, LLC. Its long-term stock value depends on fundamentals, not a short-squeeze. Has the Squeeze Been Sqoze? This short squeeze trend could spill over to other highly shorted stocks. Gamers are embracing digital downloads over the physical purchase of game titles. My guess is the squeeze is over. About. short volume shows 78% on some sources, only 21 million shares, down 65% from 35 million shares (you state 93 million shares). In the long term, this retailer’s fundamentals are showing potential upside. Trending now. All Opinions.. Not Financial Advice. I’m still holding though. On Jan. 28, InvestorPlace Senior Investment Analyst Luke Lango detailed more than a dozen short-squeeze stocks with big runway. The regulator will most likely look at the relationship between Citadel and Robinhood with greater scrutiny. All rights reserved. My guess is the squeeze is over. Copyright © 2021 InvestorPlace Media, LLC. So, the party may be over for those profiting from the mad rush into GME stock. Its stock price will reflect that. WSB must differentiate between squeezing hedge funds and getting taken advantage of. GameStop may pivot its retail business by embracing the cloud infrastructure. A few days back, shares of GME stock were shooting the moon. Hello all, Before I begin I would like to address something I have been encountering on my posts in the comments section. But the drop seems inevitable. 8.1k. Currently long GME. report. 2021 InvestorPlace Media, LLC. With that in mind, cash out now if you own it and avoid it completely if you don’t. So, the party may be over for those profiting from the mad rush into GME stock. GME could be a $30 stock in 24 months, but the next major move looks to be lower first. At the time of this recording, GME price was trading around the $65.00 price level – down almost 80% from the Jan 28th highs suggesting that the short squeeze is now over. GME. Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Copyright © Hedge funds have covered their shorts. It may take weeks or even months for the dust to settle. Dogecoin Price Predictions: What Does #DogecoinRise Mean for DOGE? So, make no mistake — the majority of investors who got into this name after the story broke will experience heavy losses. So, hiring Matt Francis in the chief tTechnology role should lift its prospects. On each of the following two days, the stock doubled again, bringing the price to an all-time high of $483.00 over the span of two weeks – this represented a 2,265.33% increase in prices. A short squeeze for GameStop occurs when it has a large amount of short interest and its stock increases in price. However, don’t be too upset about missing out on the ground floor with this now-passed trade. RBLX Stock IPO: When Does Roblox Go Public? share. Jan 27, 2021. This forces short sellers to cover their short interest positions by buying actual shares of GME, which in turn drives the price of the stock up even further. The SEC will need to look at Robinhood’s related solvency and commitments in enacting such a drastic move. Article printed from InvestorPlace Media, https://investorplace.com/2021/02/gme-stock-gamestop-short-squeeze-continues/. According to Stock Rover, shares are worth $53.02. And that could mean big losses for those who don’t get out in time. 3 Big Stories to Watch. The GME stock short squeeze may not yet be over. Yet the short side is not without risk as two hedge funds nearly blew up over this. I hatch a brilliant little plan to short them to death. The bad news for the short-sellers is that most of the WSB gang are not looking for a profit. My guess is the squeeze is over. GameStop shares fell over 30% on the Monday trading session as investors begin to realize the short squeeze is likely over, amidst the backdrop of multiple brokerage houses limiting the buying of the security.. To make matters worse for retail investors long GameStop, according to IHS the short interest has fallen from a high of 139% to a low of 39%. no comments yet. 1125 N. Charles St, Baltimore, MD 21201. One lost half their money in a month. Investors should look at GameStop’s value, growth, and quality score to come up with a fair value. Melvin is down 30% in 2021 on the back of a GME stock short position. Published or Updated on . A jaw-dropping spike in the price of GameStop (GME) stock pushed the entire investment and trading universe to the edge of their collective seats this week. Since hitting its record highs, shares have since pulled back more than 70%. GME Short Squeeze What Comes Next Part 5. It’s ‘Game Over’ For the Epic Short Squeeze in GameStop Stock, Why GME, EXPR, AMC, KOSS and NAKD Stocks Were Moving Today >>> READ MORE, Things Are About to Get Interesting for Zomedica, Louis Navellier and the InvestorPlace Research Staff. View Entire Discussion (0 Comments) More posts from the GME community. Source: rblfmr / Shutterstock.com Since hitting […] In short, he was investing in GameStop as he believed in the company as well as it being a stock play that might trigger a short squeeze. Fortunately, as the door on this opportunity closes, a new window may be opening up for other potentially profitable moves. The executive previously worked as engineering leader at Amazon Web Services. S&P 500 0.00%. save. It’s all but inevitable that the shares are heading back towards prior price levels. GME / GameStop Corp. short volume is shown in the following chart. Too many crazy theories on a never ending short squeeze, … The GameStop Stock Short Squeeze Is Driven By Reddit Users : The Indicator from Planet Money The price of GameStop shares have surged this week, in part because of something called a short squeeze. And because that is not the case, the short-sellers ought to get very worried. When you buy into a market that’s already going up, you’re going to push the price up further. GameStop Stock (GME) Short Squeeze - Summary Story. Curious why you're seeing GameStop pop up all over your social media. For example, the Koss family and directors sold $44 million in stock. And then, to close out his position, the short seller will have to buy in the market and return the shares. Yet the short side is not without risk as two hedge funds nearly blew up over this. After Earnings, the Battle Over Nio Stock Is All About Valuation. The true players on both sides of the market equation continue to emerge as GameStop (NYSE:GME) takes center stage. AFAIK, this whole thing started from the initial conversation at WSB about GME having over 100% shorts. Log In. A short squeeze occurs when a heavily shorted stock starts to rise, and those with short positions rush to buy back sold short shares. Message . The idea is that hedge funds bought stock amongst each other at lower prices to hurt GameStop’s stock price. Readers may analyze GameStop’s prospects further in a 5-year discounted revenue exit model. But the writing is on the wall: if you own GME, get out pronto. When an investor makes a short sale, they do so with the belief that a security will decline in price. The latest messages and market ideas from GME (@GMEshortsqueeze) on Stocktwits. 2021 InvestorPlace Media, LLC. The short fold on it it’ss crazy and it’s obviously short squeeze but you can look at … FYI: A short squeeze happens when a stock’s price unexpectedly rises at a rapid rate. Like I’ve said above, this doesn’t guarantee shares will return to prior price levels immediately.
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