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Tag: Citron Research

  • Day Traders Continue to Pump Stocks, WH and Treasury Monitoring

    Day Traders Continue to Pump Stocks, WH and Treasury Monitoring

    Day traders continued to take on Wall Street investors, pumping stocks traditional investors have been shorting.

    GameStop made headlines when its stock surged after Citron Research’s Andrew Left urged investors to short it. Traders took to Reddit to urge others to buy, causing the stock to hit as high as $247 in after hours trading Tuesday, a far cry from the $18 it was at a couple of weeks ago.

    GameStop isn’t the only company to see its stock take off. AMC has risen some 310%, Blackberry 24% and Bed Bath & Beyond 46%, according to Business Insider. It appears that day traders are engaging in a new level of activism, targeting stocks that institutional investors are shorting. The end result is volatile trading that has caused traditional investors to suffer heavy losses.

    The situation is not going unnoticed, with WH Press Secretary Jen Psaki saying the White House and Treasury Department were monitoring the situation.

  • Good Day For GameStop Investors As Stock Hits $247

    Good Day For GameStop Investors As Stock Hits $247

    GameStop is having a wild day, as individual investors have helped drive the price to $247, up from $18 just a couple of weeks ago

    Like many brick-and-mortar companies, GameStop has been struggling with the effects of its customers transitioning to online buying. The company has been forced to close hundreds of stores and faces an uncertain future.

    As a result, many investors started short-selling the stock. Andrew Left of Citron Research, in particular, was one of the most vocal in pushing for investors to short-sell. In response, individual investors on Reddit began grabbing up shares of the stock, causing its price to soar. In fact, its price starting rising so much that many short-sellers were forced to buy it back at higher prices.

    Elon Musk even got in on the action, tweeting about the phenomenon.

    The stock hit $159.18 Monday, before dropping to close at $76.79. On Tuesday the stock rose $147.98, before skyrocketing to $247 in after-hours trading.

    Ultimately, GameStop’s fundamentals are unchanged. This episode, however, shows the power of individual investors banding together against Wall Street, and adds an uncertain factor to future investor recommendations.