Retail investors, who recently entered GameStop Corp., are warning a victory this week after the struggling company’s stock jumped more than 90 percent over the past two days, giving it the best-ever share of the stock.
For several weeks, the members of the forum Reddit’s popular WallStreetBets touted GameStop, urging others to scoop up the stock of the video game retailer and start making bullish bets. Several forum posts indicate that short sellers’ bearish GameStop bets are at a higher level.
Short-term interest, which indicates the interest of investors betting that stock will fall in value, has floated about 138% of the stock’s free float this year, FactSet data shows. Number two on the New York Stock Exchange and Nasdaq Inc., according to Dow Jones Market, that has led some Reddit users to speculate that stocks could rise sharply if short sellers had to hide their bets by buying back them if the stock had. Sudden increase in value
This week, the forecast appears to have taken shape after news of a change to GameStop̵7;s board raised stocks.
On Monday, the company said it struck a deal to add Ryan Cohen, co-founder of Chewy Inc. and two former executives to the GameStop board.