The announcement comes shortly after GME stock rose above the $30 mark.
Citron Research, a prominent short seller of GameStop (GME) stock, has announced that it is no longer short on GME.
The well-known short seller decided to close its GME short position due to what it describes as “the market’s irrationality” and the “cult-like” behavior of the company’s shareholders. Citron Research made this announcement in a post on X on June 12:
“Citron is no longer short $GME. It’s not because we believe in a turnaround for the company’s fundamentals will ever happen, but with $5 billion in the bank, they have enough runway to appease their cult-like shareholders.”
This decision follows a significant increase in GME’s stock price, which rose above $30 after a 22.8% intraday rally on Tuesday. As of the latest data from Google Finance, GME is trading at $30.49, up 3.3% in pre-market trading.
Summary Review: Citron Research’s decision to no longer short GameStop (GME) stock underscores the evolving dynamics of the market and the influence of shareholder sentiment on investment decisions. Despite maintaining skepticism about the company’s fundamentals, Citron’s acknowledgment of the market’s unpredictability reflects the complexities of navigating today’s financial landscape. As GME continues to experience fluctuations in its stock price, investors remain vigilant, balancing opportunities and risks in the ever-changing market environment.
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