GameStop v.s. Citron

Andrew Left of Citron Research is ending his bearish commentary on GameStop after he said an “angry mob” of investors harassed him and his family over the past 48 hours.

Shares of GameStop [$GME] Friday wasting no time tacking on to a recent pop higher, setting up the video game retailer on track for its best monthly gain, up over 220%, since its IPO in 2002.

The milestone runup in shares of the company comes as a village of Robinhooders on Reddit’s Wall Street Bets have been pushing to boost values higher, even as short-seller Andrew Left at Citron Research has attempted to make a case why valuations for GameStop make it a sell rather than a buy.

That being said, a planned livestream hosted by Citron, intended for Wednesday originally, was cancelled and Citron has made a fuss about “hacking” of its livestream events and its Twitter account recently. Bloomberg referred to Citron’s technical difficulties as a retaliation from the Reddit community that’s yugely bullish on GameStop.

Shares originally kicked off its parabolic rise last week and the gain was attributed to a short squeeze, where investors who are betting that the stock price will fall in value are forced to buy shares they have borrowed in their bearish bets, which can have a rippling effect of magnifying the stock’s rise.

Investors also see the rally in GameStop as evidence of a bubble forming in segments of the market, with the Fed injecting liquidity and support for the financial market amid the pandy and maintaining interest rates at or near 0%–a blueprint that bears have said has encouraged speculative investments.

GameStop has had a booming run due to lockdowns and more people gaming at home. This rally in January far topples its 66% jump in August, its second-best monthly gain ever.

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