GameStop (NYSE:GME), a retailer of video games, consumer electronics, and gaming merchandise, is dominating the online chatter currently as its shares continue to register outsized gains, decimating the shorts in the process.
As is evident from the snippet above, GameStop’s short volume ratio peaked in August before moderating substantially. In the meantime, the stock has continued to tread higher. As an illustration, since the beginning of August 2020, GameStop shares have surged by nearly 800 percent, based on the current pre-market price of $37.30 per share. Since Monday alone, the stock is up nearly 100 percent.
Of course, this epic rally in GameStop’s stock price has inflicted serious damage on the shorts. Now, however, this pain trade is dominating online chatter.
Guess what is topic of the day among retail investors?
Mentions of $GME eclipse all other stockshttps://t.co/kX3GCYRK7U
— Breakout Point (@BreakoutPoint) January 14, 2021
A confluence of bullish factors appears to be providing the necessary momentum for this upthrust. For instance, GameStop reported on Monday that its same-store sales increased by 4.8 percent, while digital sales surged by a whopping 309 percent in the nine-week holiday season. Total sales, however, declined by 3.1 percent amid the company’s ongoing “de-intensification strategy”. In a crucial caveat, while lockdowns instituted to combat the spread of the coronavirus (COVID-19) pandemic hurt store sales, digital sales received an inordinate boost as a large segment of GameStop’s user base were confined to their homes with limited avenues of leisure. Looking ahead, the introduction of next-gen gaming consoles serves as another tailwind for the company’s short-term prospects.
In a related development announced earlier this week, GameStop reached an agreement with the activist investor, RC Ventures LLC. The company noted in its press release:
“[GameStop has] entered into an agreement with RC Ventures LLC (“RC Ventures”) that will advance the refreshment of the Company’s Board of Directors (the “Board”). RC Ventures, which is one of the Company’s largest stockholders, is managed by Ryan Cohen. The agreement provides for the immediate appointment of three new directors – Alan Attal, Ryan Cohen, and Jim Grube – who will also stand for election on GameStop’s nine-member slate at the Company’s 2021 Annual Meeting of Stockholders (the “Annual Meeting”), which is expected to take place in June 2021.”
Given the stretched technical metrics of GameStop shares currently, as is evident from the snippet above, we would not be surprised if the stock takes a breather in the coming days. However, its broader outlook remains enticing.
The post GameStop (NYSE: GME) Dominates Online Chatter as the Stock’s Epic Short Squeeze Shows No Sign of Slowing Down by Rohail Saleem appeared first on Wccftech.
source https://wccftech.com/gamestop-dominates-online-chatter-as-the-stocks-epic-short-squeeze-shows-no-sign-of-slowing-down/