GameStop short sellers are having one of the worst months this year.
Investors betting against the stock have amounted more than $443.4 million in losses, according to S3 Partners, LLC.
Hedge fund Melvin Capital closed earlier this year when it failed to recuperate from its losses shorting GameStop last year.
S3 Partners, LLC recently released a report showing AMC short sellers have lost more than $1 billion this year so far.
It seems financial institutions have not learned their lesson this year.
Here’s the latest market news surrounding GameStop and short seller losses.
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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:
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.
Retail sentiment in GameStop
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.
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