GameStop stock price (NYSE: GME ) continues to soar on Monday during early US trading (pre-market). The shares of the U.S. video game and merch retailer, which more than tripled in 2021, are up above $100 mark. GME stock is going parabolic thanks to long term investment by Ryan Cohen and some other retail investors such as, already legendary, /deepf**kingvalue.
He started with 50k over a year ago and it wasn’t a YOLO. That’s 50K to currently 11 million— Erik (@erikrc) January 23, 2021
He’s talked about the fundamentals of the company the whole time
On Friday the closing stock price was still “only” $65.01 but we are in triple digits right now. Some social media posters predict 4 digit numbers as they say that they will not “sell til $1000”.
The short seller Citron Research commented on the latest price development of the share in a tweet on Twitter on Tuesday. They referred to those investors who buy GameStop shares at the current level as “idiots at this poker game”. Mr. Left of Citron sees GameStop shares quickly drop back to $20.
According to FactSet data GameStop stock is the most short-selling stock on the US stock exchanges, with 138 percent of the shares outstanding.
In a short squeeze, prices go up fast. Those who bet on a falling price then have to buy back. As a rule, they will accept whatever price the stock will cost. This is why GME stock can continue this rally through the whole week.
According to TipRanks data, the average target price of 6 surveyed analysts is $10.72. One analyst even gave it a $1.60 target price. Seems like some analysts are out of touch…which is not that unusual.