GameStop rally triggers losses of up to $1 billion for short sellers
The stock of GameStop Corp surged in today’s trading, leading to substantial financial pain for short sellers who are facing losses amounting to $1 billion, according to data from S3 Partners.
This spike in GameStop’s shares was primarily fuelled by a recent post from Keith Gill, better known by his online alias “Roaring Kitty.”
Gill’s post hinted at his potential return to active trading, which has sparked considerable interest and optimism among investors.
Wider impact on market favourites
The rally did not only uplift GameStop but also positively influenced other stocks popular among Reddit users.
Shares of AMC Entertainment Holdings, Trump Media & Technology, BlackBerry, and ALTC Acquisition Corp have also experienced gains, riding on the coattails of GameStop’s strong performance.
Predictions of further market movements
Ihor Dusaniwsky, the managing director of predictive analytics at S3, commented on the situation, suggesting that the market might see further activities like short covering in response to the rally.
“Expect short covering in this stock as it already had a 100/100 squeeze score prior to today’s trading,” Dusaniwsky noted, indicating that the aggressive buying could continue if the momentum persists.
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