Jim Cramer appears to be flabbergasted by GameStop’s epic run — making this observation early Monday:
‘I’ve never seen the guns like this. They can break shorts.’
Trading by individual investors has led to massive rises in the Texas-based videogame retailer’s stock, which has quadrupled in 2021.
The former hedge-fund notable, commenting Monday during a CNBC program he co-hosts, “Squawk on the Street,” said this is new territory for the market: “The mechanics of the market are breaking down. It’s arguable that these people are all one group.”
surged again Monday, fell and the rose again in a wild day of trading, after storming 51% higher on Friday. The gains came after short-selling firm Citron Research and speculative buyers organizing on Reddit clashed over the game retailer.
After the markets closed on Friday, Citron released a video arguing the stock was worth $20. GameStop has been a favorite of Reddit message board WallStreetBets, where hundreds of posters have been calling for other posters to buy the stock after investors betting against the chain pushed short interest to more than 100%.
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