The shares of GameStop Corp. they reversed their price on Monday, withdrawing from the weekly record gain, after more than half of the short positions on shares were eliminated.
GameStop GME,
shares fell up 35% on Monday trading and fell about 23% to $ 251.31. The volume was over 24 million shares by noon. In the last 10 trading days, the daily volume had on average 92.2 million shares and on average 11 million daily shares in the last 52 weeks.
Last week, GameStop shares rose 400% in a highly volatile trading week, in which loyal retail investors of shares raised through the Reddit WallStreetBets clashed with institutional short sellers on Wall Street.
Ihor Dusaniwsky – head of predictive analytics at financial and analytics technology firm S3 Partners, which specializes in analyzing missing sales data – said Monday that a “short squeeze has begun” on GameStop, though some speculated that a short pressure was stock growth in mid-January.
The number of shortened GameStop shares fell 35.2 million from last week, leaving 27.1 million short positions remaining. Shorts lost more than $ 13 billion in 2021 alone on GameStop, even after gaining $ 1.9 billion in decline on Monday, Dusaniwsky said.
“Both fundamental and impulse short sellers have found opportunities and price exits to reduce their positions in the face of these losses, as GME’s short stress is in place,” Dusaniwsky said in comments via email.
Meanwhile, the stock will most likely be said in the same breath as GameStop, AMC Entertainment Holdings Inc. I HAVE C,
it rose about 7% to $ 14.14, even as an analyst downgraded the stock to a sell rating and lowered its target price to $ 1.