Home / Business / GameStop shares soared more than 60 percent on short squeezes, but analysts pointed to another reason.

GameStop shares soared more than 60 percent on short squeezes, but analysts pointed to another reason.

GameStop Corp. GME,
+ 55.55%
Shares soared on Wednesday in a short squeeze, but one analyst specializing in short-selling data doesn’t think that’s the case.

GameStop shares jumped more than 60 percent on Wednesday, which will be the biggest one-day percentage gain ever, according to Dow Jones, more than a week after a brief interest in the video game retailer’s stock. Outstanding number of shares In a recent review, more than 125 million shares were traded on hand during the day, compared with the 52-week average volume of 6.5 million shares.

While GameStop had 69.8 million outstanding shares, the stock̵

7;s short-term interest rose to 71.2 million shares on Dec. 31 from 68.1 million previously, according to FactSet.

On Monday, GameStop’s shares were up 10 percent after reaching a deal with activist investor RC Ventures to add three members to its board and gained less than 0.1 percent on Tuesday.Also on Monday, the company said same-store sales. During the holidays, up 4.8% and digital sales were up 309%.

While noticing that shorts are certainly part of the booze buy, Ihor Dusaniwsky, head of predictive analytics at S3 Partners, a financial and analytics technology company specializing in analyzing data on sales pitches. Martine said he opposed the price spike in GameStop as a result of the squeeze.

“The shakiness of the GME board and the stronger holiday sales generated a long-lived tsunami that was a key factor for price movements,” Dusaniwsky said in an emailed comment. That we’re seeing some shorts squeezed out of place due to today’s mass market-market losses, it’s like the chicken-and-egg question – a long buy leads to a short shut . Squeezing leads to long purchases? “

Dusaniwsky is believed to be a past.

“We won’t see a huge drop in stocks over the next few days, such as a 10% -20% drop, which would mean 7 to 14 million shares covering nowhere near nearly 70 million shares. “This morning,” analysts said, “long-term buyers were the main driving force behind GME’s share price.

GameStop shares have soared more than 500 percent over the past 12 months, compared with a 16 percent rise in the S&P 500’s SPX index.
+ 0.22%
And a 42% increase in the Nasdaq COMP composite index.
+ 0.40%.

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