GameStop Corp. GME,
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 stock̵7;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.
And a 42% increase in the Nasdaq COMP composite index.