Redditors Vs Melvin Capital
Before going in depth read what is meant my a short squeeze? A Short Squeeze: A short squeeze is a rapid increase in the price of a stock owing primarily to technical factors in the market rather than underlying fundamentals. A short squeeze can occur when there is a lack of supply and an excess of demand for the stock due to short sellers covering (liquidating) their positions. 1. What is Gamestop/GME? Gamestop is a retailer that sells video games. Not online, in physical form. Which has been a problem, because people are increasingly buying games online. Gamestop, listed as ticker GME in the US, has recently lost $275 million in the past 12 months, on revenues of $5 billion. Gamestop was a loss making business, it has been gaining interest because Ryan Cohen, the founder of Chewy, Inc (a pet food retailer that’s incredibly successful) has bought nearly 13% of the company, wants it to go bigger online, and has recently been added to their board of directors. This would be good, b...