GameStop Corp. ‘s shares reversed on Monday and withdrew from their weekly record profit, after more than half of the short positions on the stock were eliminated.
GameStop GME,
The stock fell 35% on Monday and last dropped $ 231.31. The volume was more than 24 million shares by noon. Over the past ten trading days, the daily volume averaged 92.2 million shares, and averaged 11 million shares over the past 52 weeks.
Last week, GameStop’s share rose 400% in an extremely volatile trading week where retail investors of the stock compiled via the Reddit WallStreetBets thread clashed with institutional short sellers on Wall Street.
Ihor Dusaniwsky – head of predictive analytics at financial technology and analytics firm S3 Partners, which specializes in analyzing short-selling data – said on Monday that the ‘short press’ had ‘started’ on GameStop, although some speculated that a short pressure, the share was increased in mid-January.
The number of GameStop shares decreased by 35.2 million last week, leaving 27.1 million short positions. Shorts lost more than $ 13 billion on GameStop in 2021 alone, even after earning $ 1.9 billion with its downturn on Monday, Dusaniwsky said.
“Both fundamental and momentum short sellers have found opportunities and price points to weaken their positions in light of these losses as the GME short pressure is in effect,” Dusaniwsky said in an email.
Meanwhile, the stock is likely to be said in the same breath as GameStop, AMC Entertainment Holdings Inc. AMC,
rose about 7% to $ 14.14, even though one analyst downgraded the stock to a sales rating and lowered their price target to $ 1.