GameStop Corp
GME,
5764%
Shares rose in an apparent short squeeze on Wednesday, but an analyst who specializes in short selling information doesn’t believe it does

GameStop shares rose more than 60% on Wednesday – the biggest percentage gain in a day ever, according to Dow Jones data – more than a week after the video game retailer’s brief interest in the stock increased the number of shares issued At the last review, more than 125 million shares had traded in the day’s hands session, compared to an average daily volume of 52 weeks of 65 million shares

While GameStop 69 has 8 million shares outstanding, short interest on the stock rose to 712 million shares on Dec. 31 of a previous 681 million stocks according to FactSet data

GameStop shares rose 10% on Monday after agreeing with activist RC Ventures to add three of their members to the board of directors, and rose less than 01% on Tuesday. that while on vacation sales in the same store were up 48% and digital sales were up 309%

Ihor Dusaniwsky, head of predictive analytics at financial technology and analytics firm S3 Partners, which specializes in short selling analysis, noted that shorts were definitely part of the buying frenzy and the price spike was the result of a pressure

“GME’s board shake-up and stronger Christmas sales are causing a long-buy tsunami, which is the main driver behind the price movement,” Dusanivsky said in emailed comments. “While I agree that some shorts today due to massive Mark-to-market losses are pushed out of their positions, but this is similar to the chicken and egg question – did a long buy result in a short cover squeeze or a short cover? Squeeze leads to long purchases? ”

“We’re not going to see a massive drop in short positions in the next few days, more like a 10% to 20% drop, which would mean 7 to 14 million covered shares, which is nowhere near the nearly 70 million shares traded this morning, “the analyst said,” Long buyers are the main force driving GME’s share price higher, “

GameStop stock is up more than 500% in the past 12 months, compared to a 16% increase in the S&P 500 index
SPX,
023%
and a 42% increase in the Nasdaq Composite Index
COMP,
043%

Nio Inc undefined announced the pricing of $ 1 billion convertible bonds on Wednesday USD $ 650 million in bonds USD due 2026 and $ 650 million in debt securities USD by 2027 The China-based electric vehicle maker said the 2026 senior unsecured notes will not pay interest and the principal amount will not accrue Nios shares slipped 0.3% in premarket trading, The 2027 Senior Notes will earn interest at 050% per year Holders can exchange the 2026 banknotes anytime on or after August 1, 2025, and the 2027 notes can be converted on or after August 1, 2026, for cash, American Despositary Shares (ADS), or a combination of cash and ADS The initial conversion rate for notes on ADS is $ 9306 per ADS, which is 50% above Tuesday’s closing price of $ 6204 Nio shares are up 1870% in the last three months to Tuesday, while the undefined iShares MSCI China ETF gained 8 hat0% and the undefined S&P 500 has advanced by 82%

Wallace Witkowski joined MarketWatch from the Associated Press in New York, where he worked as a business reporter specializing in pharmaceutical companies. Previously, he reported for specialist publications on the drug and medical device industry until 1998. He lives in San Francisco and focuses on U.S. Shares Follow Wally on Twitter at: @wmwitkowski

GME, GameStop stock

World News – CA – GameStop stock is up more than 60% in what appears to be a short span of time, but the analyst points to another reason

Source: https://www.marketwatch.com/story/gamestop-stock-soars-60-in-apparent-short-squeeze-11610559366