Meme Wars Shake up GameStop Stock
Posted on 01/26/2021
UPDATE: GameStop is now $223 and extends post-market gain to more than 50%. Looks like we have an “infinity squeeze” in full bloom. How big is the Citadel/Point72 checkbook?
Shares of GameStop (ticker: GME) are jumping again after an up-and-down day that saw the stock more than double and turn negative within hours. GameStop shares has rallied more than 400% in January 2021. On the Wallstreetbets reddit forum people write posts such as “Raise your diamond hands!!” in reference to increase the stock chosen, in this case GameStop.
Screenshot of Google profile of GameStop.
Social Capital’s Chamath Palihapitiya, the so-called King of SPACs, tweeted that he bought GameStop call options betting the stock will go higher. Shares of GameStop skyrocketed more than 40% to a high of US$ 114.24 on Tuesday. Stock trading of GameStop shares was halted multiple times due to volatility.
Short Sellers
The troubled retailer has attracted armies of short sellers. Despite significant rounds of short squeezes, short sellers are doubling down on their bearish bets.
Then someone on Wallstreetbets posted this on Melvin Capital.
In the 4th quarter of 2020, BlackRock Inc. trimmed its holdings in GameStop by 18.23%. BlackRock at that time still owns 9,217,335 shares of GME, which represents 13.20% ownership. In their previous filing, BlackRock had reported owning 11,271,702 shares. RC Ventures LLC, which is owned by Ryan Cohen, holds a large amount of shares in GME.
