GameStop was halted twice on Monday after the market opened and has slowly trended downward since.
The stock was forced to lose its momentum despite the heavy trading volume seen early in the trading day.
GameStop’s volume surged nearly 5 times its average trading volume on Monday but was prohibited from surging.
GME Stock Halt October 31, 2022.
Retail investors are calling S3 Partner’s announcement a setup, or trap to burn shareholders.
But Wall Street can easily create a big sell order in the market despite of heavy volume from retail, the question here is why not go long with them?
Last year, GameStop and AMC shareholders were able to inflict hedge funds who were betting against the two companies with billions of dollars in losses.
Are retail and hedge funds at war with one another?
It certainly seems so.
Is a GameStop Short Squeeze Likely?
Despite the market advantages financial institutions have over retail investors, large continuous volume over a period of weeks could trigger bigger price action for GME stock.
One-day rallies of heavy buying volume isn’t enough to combat market makers.
Like last year, it’s going to take continuous buying pressure to compound the momentum that will likely result in a GME short squeeze.
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GameStop outperforms the S&P 500
The market has been down all year, but GameStop has managed to outperform the S&P 500 index.
The SPY is down more than -17% this year while GME stock has managed to hover at -12.70% this year-to-date.
Looking at the 6-month chart and we’ll find GameStop outperforms the S&P 500 by a long shot.
On the 6-month chart, GameStop is up +42% and SPY is down -8%.
The one-month charts are fairly similar with both up about +2% in July.
And with GameStop’s stock split making the stock more affordable, it’s fair to say more investors will be jumping in on it.
It’s very possible GameStop short sellers end up getting caught at the wrong end of the trade again as the third quarter ends and we transition towards Q4 in October.
According to a report published by S3 Partners on July 21, GameStop has been among the top 10 most unprofitable stocks for short sellers during July 2022.
Other companies on that list include:
Tesla
Apple
Amazon
Nvidia
Visa
Coinbase
Lucid
Meta
Microstrategy
Most unprofitable shorts July 2022
The loss of -$443,463,550 is equivalent to a net loss of -24.22%.
Tesla, Apple, and Amazon had the most unprofitable shorts for the month of July, netting billions in losses.
The retail sentiment in GameStop is still rather strong and bullish.
And because GameStop’s reported short interest is still quite high at 23.86%, it’s very possible big momentum is able to squeeze the remaining short sellers from their positions.
Another short squeeze is still very possible for GME stock.
Are you a shareholder?
Leave your story in the comment section of the blog down below.
The proposal was on the table for months, but Dow Jones Newswire has officially confirmed it.
Shareholders have been waiting for this fundamental catalyst in hopes of scaring short sellers and finally creating a proper GME short squeeze.
But this is more than just a short squeeze catalyst.
If you’re a true believer of the company and in the innovation and future of where it’s going in the NFT space, now is the perfect time to look into owning a piece of the company.
It’s about to get pretty damn affordable.
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GameStop announces 4-1 stock split
GME 4-1 stock split explained
GameStop Corp. on Wednesday said its board approved and declared a four-for-one split.
It’s the first time GameStop has split the stock since 2007 making it the second time in history it happened.
GameStop had done a 2-1 stock split thirteen years ago.
So, what does a 4-1 stock split even mean?
It means that current GME shareholders will receive 4 shares of GME stock for every one share they currently hold.
If you’re holding 1 share of GameStop in your stock portfolio, you will receive 4 shares of GME stock.
Shareholders with 1,000 shares of GME stock will receive 4,000 shares.
However, this does not mean GameStop’s share price will quadruple in the process.
On the contrary, GameStop’s current share price will be divided by four.
The stock closed at $117.43 on Wednesday and has jumped more than 8% after hours.
What will GameStop shares be worth after the stock split?
Based on Wednesday’s number figure, GME stock will be worth approximately $29.35 after the split, making the stock much more affordable for the public to invest in.
GameStop stock split date
Investors who purchase GME stock before July 18 will receive the additional shares in GameStop’s 4-1 stock split.
Some investors might wonder, why is GameStop splitting its stock?
Often times when a stock’s share price has reached high levels, a company will issue a stock split to make it more affordable for the public to purchase.
We’ve seen this happen with Tesla (TSLA) and Apple (AAPL) in the past.
Amazon recently had a 20-1 stock split, making it extremely affordable to add AMZN stock to your portfolio.
Stock splits are a common way to attract more investors towards a growing company.
Are you a GME shareholder?
How many shares of GME stock will you own after the stock split?
Or are you a curious investor who is thinking of buying GME after the stock splits at a much more affordable price?
And lastly, will GameStop’s 4-1 stock split be a catalyst to finally squeeze short sellers from their positions?
