As a researcher with experience in following the stock market and meme stock trends, I’m keeping a close eye on the recent developments surrounding GameStop (GME) and Citron Research. The return of Roaring Kitty, a prominent investor and meme stock influencer, to social media has once again set off a frenzy among retail traders, leading to significant volatility in GME’s stock price.
The excitement surrounding GameStop on Wall Street has been reignited, with Roaring Kitty making a significant social media appearance last day. Notably, Citron Research is taking a bold stance by increasing their short positions, despite experiencing substantial losses during the 2021 GameStop (NYSE: GME) stock surge.
Citron Research founder Andrew Left Building GameStop Shorts
Andrew Left, the head of Citron Research, has started a fresh short selling campaign against GameStop Corp., following a dramatic 75% surge in its stock price on Monday. This rise was instigated by Keith Gill, an influential investor and popular figure in the meme stock community on Reddit, who disclosed ownership of over five million GameStop shares.
In May, Left revealed that he had sold short the company’s shares. He shared with Bloomberg in a recent interview that he had since bought back those shares, and then taken on a fresh, albeit lesser, short position. The exact extent of his current short position was not specified in the interview.
As a researcher, I’d rephrase it as follows: My findings indicate that GameStop’s stock experienced a significant surge in value, adding around $6 billion to its market capitalization. Consequently, trading was halted due to the volatility caused by this abrupt price movement. Following the resumption of trading, some of these gains were scaled back, but the stock still showed an impressive rise of over 30% by early Monday afternoon.
Meme Stocks Frenzy To Continue?
Meme stocks have regained popularity in the stock market, fueled by the reappearance of Keith Gill, also called “Roaring Kitty” on certain social media platforms, online. In early 2021, Gill garnered widespread attention for mobilizing individual investors through Reddit, leading to a buying frenzy. The most recent market excitement was ignited by Gill’s June 2 social media post regarding the struggling video game retailer. According to Andrew Left, founder of Citron Research, “Gill seems just as skilled as a hedge fund manager.”
Previously, Citron Research, which is headed by left, experienced substantial setbacks during the meme stock frenzy due to his bearish stance on GameStop. Furthermore, Citron Research has found itself under scrutiny in a U.S. Justice Department probe regarding short selling practices among hedge funds and research firms.
As a financial analyst, I’ve observed that the meme coin associated with GameStop ($GME) has experienced a decline of approximately 6% at this moment. In contrast, the Gamestop stock (GME) concluded its trading session on Monday with a substantial increase of around 21%, reaching a price of $28.00 per share.
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2024-06-04 09:07