GameStop, one of the most heavily bet-against stocks on Wall Street, has handed short-sellers $11 billion in losses so far this year, according to data from Ortex.
GameStop (GME) shares extended their recent gains Tuesday, tagging short-sellers with more than $11 billion in losses so far this year as the retailer's meteoric rise continues to punish its many detractors.
Data published from research and analytics group Ortex estimates year-to-date losses for investors betting against GameStop shares at $11 billion. Short interest in GameStop shares remains active, according to data from S3 Partners, with bets against the stock tabbed at $1.888 billion, or 27.7% of the outstanding float.
GameStop, for its part, has had very little to say about the Reddit-fueled powering of its share price, which hit an all-time high of $483 and are now up more than 1,000% since January 12, when the company reached an agreement with Cohen's RC Ventures LLC to re-structure its board and focus on digital sales and not simply "remain a videogame retailer that overprioritizes its brick-and-mortar footprint and stumbles around the online ecosystem."
GameStop did say Monday, however, that has created an inter-company committee, which includes Cohen, to "identify initiatives that can further accelerate the Company’s transformation" that includes hiring a chief technology officer, two executive to lead e-commerce and fulfillment functions and forming a search committee for a new CFO.
Bloomberg reported Monday that Cohen will lead the group's shift towards e-commerce and online sales, a move that follows the announced departure of CFO Jim Bell late last month.
GameStop shares were marked 17.5% higher in late-morning trading Tuesday and changing hands at $228.50 each. The stock has been rising for six of the past seven trading sessions, extending a run that now values the money-losing video game retailer at around $17 billion.
The surge in GameStop shares, along with a host of other so-called 'meme stocks' such as AMC Entertainment AMC Bed, Bath & Beyond BBBY and Kohl's Corp. KSS ultimately lead to a Congressional hearing into the nature of short-selling, retail trading and the influence of online chatrooms on market transparency.
A recent note from Deutsche Bank, however, suggests further gains could follow with the passage of President Joe Biden's $1.9 trillion COVID relief package later this week.
Analysts at the bank say around $150 billion of the $1,400 stimulus checks, which will be sent to around 85% of American households in the weeks ahead, will find its way back into domestic stock markets.
