Investors now anticipate a GameStop squeeze is building as GME stock continues its upward trend, building momentum.
A survey conducted by Stocktwits shows that majority of investors believe a ‘new squeeze is building’, compared to price action merely being a temporary fad.
Noor Al, the Director of Community at Stocktwits, recently shared insights with MarketWatch about the heightened activity surrounding GameStop on the platform.
GameStop currently ranks as the fourth most-active stock, having briefly held the top position earlier in the day.
This surge in interest has sparked lively discussions among traders and investors regarding the stock’s potential movements.
Al highlighted a poll conducted on Stocktwits, asking users whether they believe GameStop (GME) is poised for a new short squeeze or if the current buzz is merely a pump.
The results were telling: within just five hours, 2,300 participants cast their votes, with 60% indicating that they think a new squeeze is indeed developing.
Currently, nearly 3,000 participants have voted.
Additionally, a separate post inviting users to interact if they are holding GME garnered an impressive 800 likes in just four hours, showcasing significant engagement from the community.
As the trading day progressed, GameStop’s short interest stood at 8.2% of its public float, indicating a notable level of bearish sentiment.
The stock saw trading volume of 21.67 million shares, significantly surpassing its 65-day average of 10.12 million shares, further suggesting heightened investor interest.
The recent momentum for GameStop can be partly attributed to the return of Keith Gill, known in the trading world as Roaring Kitty.
Gill was a pivotal figure during the 2021 meme-stock phenomenon that propelled GameStop’s shares to unprecedented heights.
His reemergence on social media has rekindled enthusiasm among traders, leading to increased discussions and speculation about the stock’s future.
In a noteworthy development, Algert Global LLC has dramatically increased its stake in GameStop by 270.5% during the third quarter.
According to its latest filing with the Securities and Exchange Commission (SEC), the institutional investor now holds 150,526 shares, having acquired an additional 109,900 shares during this period.
The value of these holdings amounted to approximately $3.45 million.
Other institutional investors have also shown a keen interest in GameStop.
Charles Schwab Investment Management Inc. raised its position by 22.6% in the third quarter, bringing its total to 3,502,910 shares, valued at around $80.32 million after purchasing an additional 646,488 shares.
Similarly, Van ECK Associates Corp. increased its holdings by 8.1%, now owning 1,825,837 shares worth approximately $41.87 million following the acquisition of 136,785 shares in the last quarter.
Keep in mind, this is the same company that has given Bitcoin an ambitious price target of $180,000.
Citadel Advisors LLC has also bolstered its position, increasing its stake in GameStop by 25.72% during the third quarter.
Their latest SEC filing reveals they now hold 2,400,543 shares, up by 491,164 shares from the previous quarter, with a total value estimated at around $55.04 million based on Quiver Quant estimates.
As these developments unfold, traders are left wondering: Is GameStop on the brink of another massive short squeeze?
While speculation is rife, the market dynamics will ultimately determine the stock’s trajectory in the coming days and weeks.
Investors will be watching closely, eager to see if history will repeat itself or if the current activity will fade into the background.
Only time will tell if GameStop can recapture the fervor that once made it a household name in the trading world.
GameStop (GME) stock is up more than 33% in the past month at the time of this writing.
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