Next huge squeeze? GameStop short interest peaks
Despite short-term unfavorable sentiment, GameStop stock continues to attract market interest due to short-squeeze activity.
Recent developments
As of June 7, 2024, the reported short volume was 103,785,384 shares, up from 97,123,046 shares on January 22, 2021, according to Unusual Whales' June 9 X article.
GameStop short-interest volume chart. From Unusual Whales
The increased rise in short interest implies that many investors are betting on GameStop's stock price falling despite another retail trader squeeze.
High short interest creates a perilous scenario. Short sellers scramble to quit their positions to minimize losses if favorable news or coordinated purchasing might quickly raise prices.
Bad financials for Gamestop
Retail investors are fascinated by meme stock, but GameStop's business performance differs.
The firm lost $32.3 million in sales of $882 million in its fiscal first quarter, ending in June, down from $50.5 million in revenue of $1.2 billion the year before. The business blamed declining hardware, software, and collectible sales.
GameStop intends to secure its finances and support future projects amid market turbulence.
The company plans to sell 75 million common stock for general business objectives, including acquisitions and investments. After selling 45 million shares in its May 17 offering, it raised $933.4 million.
Return of Roaring Kitty
Keith Gill, known as “Roaring Kitty,” returned to the limelight with his first YouTube broadcast in almost three years, reigniting GameStop enthusiasm.
Gill, who led the 2020 and 2021 meme-stock craze, has swayed investors with interesting material. His internet involvement has caused GameStop's stock price to rise 47% on June 6.
With GameStop stock volatile, market analysts must consider short interest levels, especially with significant people like Gill reemerging.
GME was at $28.22 at press time, down roughly 40% in 24 hours. The stock is up 70% year-to-date.
