Shares of GameStop [$GME] Friday wasting no time tacking on to a recent pop higher, setting up the video game retailer on track for its best monthly gain, up over 220%, since its IPO in 2002.
The milestone runup in shares of the company comes as a village of Robinhooders on Reddit’s Wall Street Bets have been pushing to boost values higher, even as short-seller Andrew Left at Citron Research has attempted to make a case why valuations for GameStop make it a sell rather than a buy.
That being said, a planned livestream hosted by Citron, intended for Wednesday originally, was cancelled and Citron has made a fuss about “hacking” of its livestream events and its Twitter account recently. Bloomberg referred to Citron’s technical difficulties as a retaliation from the Reddit community that’s yugely bullish on GameStop.
Shares originally kicked off its parabolic rise last week and the gain was attributed to a short squeeze, where investors who are betting that the stock price will fall in value are forced to buy shares they have borrowed in their bearish bets, which can have a rippling effect of magnifying the stock’s rise.
Investors also see the rally in GameStop as evidence of a bubble forming in segments of the market, with the Fed injecting liquidity and support for the financial market amid the pandy and maintaining interest rates at or near 0%–a blueprint that bears have said has encouraged speculative investments.
GameStop has had a booming run due to lockdowns and more people gaming at home. This rally in January far topples its 66% jump in August, its second-best monthly gain ever.