/biz/ - Business & Finance

>>55366135
disgustingly cold of u

*inhales*

GameStop short sellers have lost over $320 million in mark-to-market losses YTD.

GameStop's trading performance - the stock has outperformed broad market indexes - has made it a continued target of short sellers, who believe GME’s share price doesn’t accurately reflect the company’s underlying fundamentals.

The elevation of Ryan Cohen to a management position at GameStop could worsen the outlook for short sellers.

Betting against GameStop (GME) - Get Free Report has been an awful trade for short sellers this year. The video game retailer has racked up impressive 40% YTD gains.

And according to data from S3 Partners Research, as of June 10, short sellers have accumulated about $318 million in mark-to-market losses through 2023.

Macroeconomic factors spurring a rebound in stocks with stretched valuation multiples, coupled with a strong rally in artificial intelligence (AI)-related and even AI-adjacent stocks, has helped push the S&P 500 to a 15% YTD rise. With GameStop’s beta holding at about 2, (i.e., shares’ movements are highly correlated to market trends), the video game retailer has been able to ride the same bullish wave as the broader market.

Because of market skepticism toward GameStop's fundamentals and valuation, the stock has continued to be a big target for short sellers. Today, it is one of the biggest shorts in play. There are approximately $1.23 billion worth of GameStop shares held short; that’s equivalent to about 57.3 million GameStop shares.

Currently, short sellers need to pay fees of 7.3% (annualized) to borrow GameStop shares. This percentage, although it represents a significant decline since March, is still very much on the high side. It is important to note, too, that borrow fees are driven by both short demand and the availability of shares.

*inhales*

keep your eyes on the IMMINENT sale of the bobcats by gaberino

gamestocks

shrimple as