GameStop's David Vs. Goliath Rematch: Shorts Face $1.4B Loss In 2024 As Roaring Kitty Returns
Portfolio Pulse from Chris Katje
GameStop Corporation (NYSE:GME) shares surged as Keith Gill, aka Roaring Kitty, returned to social media, reminiscent of the 2021 rally. High short interest over 24% and a significant price move resulted in a $1.43 billion loss for short sellers in May. AMC Entertainment Holdings (NYSE:AMC) also saw increased interest and price movement, with short interest at 19.0% and short sellers currently showing a profit, though this could change with ongoing price increases.
May 14, 2024 | 4:19 pm
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AMC Entertainment sees increased interest and a price rise in correlation with GameStop, with short sellers currently showing a profit, which could turn into losses if the trend continues.
AMC Entertainment, another meme stock from 2021, is experiencing a similar surge in interest and stock price as GameStop, partly due to its high short interest of 19.0%. The current profitability of short sellers is at risk as the stock continues to rise, potentially leading to a situation where these profits turn into losses, mirroring the GameStop scenario.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 80
POSITIVE IMPACT
GameStop's stock rally, driven by Keith Gill's return and high short interest, has led to significant losses for short sellers, indicating a potential repeat of the 2021 short squeeze.
The return of a key figure like Roaring Kitty and the high short interest over 24% have historically been catalysts for GameStop's stock price surges. This situation mirrors the 2021 scenario, potentially leading to another short squeeze. The significant reported losses for short sellers could further fuel the rally as they cover their positions.
CONFIDENCE 90
IMPORTANCE 95
RELEVANCE 100