GameStop’s January surge continued on Friday.
The stock exploded more than 70% to end a week that saw shares of the retailer jump more than 100%. Trading on the stock was temporarily halted today because of volatility in a short squeeze as short sellers worked to prevent bigger losses.
Chewy founder Ryan Cohen’s increased investment bumped the stock up in late 2020, and his appointment to the GameStop board has inspired investors to pile money into the stock.
GameStop has also become a darling for Reddit’s WallStreetBets, the community behind much of the surge — including the recent push to squeeze doubters.
Short sellers expected the stock to fall back to Earth quickly, with Citron Research suggesting $20 a share will be a quick realization. At its high on Friday, GameStop was trading at $73.88.
More than 130% of its shares sold short, making it the most shorted stock in the U.S. market. Citron managing partner Andrew Left said he would stop commenting on GameStop and walk away from the stock.
GameStop has been on a run, gaining 209% last year and up nearly 250% this month.