Short sellers of
GameStop stock just got squeezed. Shares of the videogame retailer spiked nearly 94% on Wednesday, though the gain shrank to about 57% through the market’s close.
In an email to
Barron’s, S3 Partners’ Ihor Dusaniwsky pointed to optimism following news on Monday that Chewy co-founder Ryan Cohen and two other former Chewy executives were joining GameStop’s (ticker: GME) board of directors. That, paired with holiday sales results, appeared to trigger “a long buying tsunami,” according to Dusaniwsky
Barron’s recently noted, citing short-selling data from S3 Partners, that the stock appeared to be primed for a short squeeze, when demand for a stock briefly rises as investors rush to cover bets that the price will fall. Investors have been betting against GameStop stock, given industry trends like the growth of free-to-play online games. Consumers’ growing tendency to buy games online, rather than shopping for copies at stores, has left the c
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Home Depot could begin buying back stock this year, the analyst says. Al Bello/Getty Images
Home Depot stock is getting a lift following an upgrade from Guggenheim, which says the home improvement retailer’s profits will rise thanks to recent investments.
Analyst Steven Forbes raised his rating on Home Depot (ticker: HD) to Buy from Neutral, and established a $310 price target for the stock. The move comes on the heels of the company’s acquisition of HD Supply, its recent $3 billion debt offering, and a more moderate valuation, which stands in contrast to the stock’s historical premium, he said.
Updated Jan. 13, 2021 4:51 pm ET
Investors who bet that shares of GameStop Corp. GME -0.01% would fall shifted positions Wednesday, sending the struggling videogame retailer’s stock soaring to its highest levels in years.
GameStop shares were up more than 57% to $31.40 on Wednesday, marking a steep climb from a year earlier, when the stock was valued at just $4.61 a share.
That recovery fueled in part by the company’s announcement two days ago that it would add Chewy Inc. co-founder Ryan Cohen and two of his former colleagues to its board created a so-called short squeeze that drove share prices sharply higher, according to some analysts. A short squeeze occurs when traders respond to an increase in price for a stock they bet would drop by purchasing shares in order to avoid losses.
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GameStop gave investors betting on the struggling videogame retailer good news and bad news on Monday. The stock, for now, seems fixed on the former.
The company (ticker: GME) reached a deal with Chewy co-founder Ryan Cohen’s RC Ventures. Cohen, as well as former Chewy executives Alan Attal and Jim Grube, will join the company s board, now at 13 members. Cohen holds 13% of GameStop shares, according to a recent filing with the Securities and Exchange Commission.
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GameStop Will Add Activist Investors to the Board. The Stock Shot Up.
GameStop gave investors betting on the struggling videogame retailer good news and bad news on Monday.
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For 2021, the bar for better living is set low. By summer, if I’m not mixing my own hand sanitizer while hoping that the lightning wildfires scare off the murder hornets, it will count as a year-over-year improvement.
Goldman Sachs is plenty upbeat. It says that 70% of people in developed markets will be vaccinated by fall, and that U.S. corporate profits this year will hit new records. The starting point for stock valuations seems high, but even so, it predicts 15% more upside this year for the S&P 500 index.
Here’s hoping that’s accurate. If so, tactical investors may want to overweight sectors that tend to do well during economic recoveries. Chief among those is the consumer discretionary sector, which specializes in things people want but don’t quite need. But boosting exposure there can be tricky, because the sector is having an identity crisis.