GameStop appears to be the 'short squeeze of all short squeezes': Tesley analyst скачать в хорошем качестве

GameStop appears to be the 'short squeeze of all short squeezes': Tesley analyst

Joe Feldman, Telsey Advisory Group senior managing director, joins 'Power Lunch' to discuss GameStop's wild moves today and how he's thinking about the stock long term. For access to live and exclusive video from CNBC subscribe to CNBC PRO: https://cnb.cx/2NGeIvi GameStop swung wildly on Monday and closed the session way off highs after retail investors active in chat rooms and hedge funds rushing to cover their short bets at one point pushed the stock above $150 a share. Shares of the brick-and-mortar videogame retailer ended the day 18% up at $76.79 after soaring as much as 144.9% to $159.18. The stock briefly turned negative within two hours of hitting its session high and was halted for volatility multiple times throughout the session. More than 175 million shares has already changed hands, far surpassing its 30-day average trading volumes of 29.8 million shares. GameStop shares have soared more than 300% in January alone and are up over 400% in three months. The stock was worth just $6 apiece four months ago. Early Monday’s jump in shares came despite a double-downgrade from Telsey Advisory Group. The Wall Street firm slashed its rating on GameStop to underperform from outperform, saying there’s a disconnect between fundamentals and valuation. “The sudden, sharp surge in GameStop’s share price and valuation likely has been fueled by a short squeeze, given the high short interest, and, to a lesser degree, speculation by retail investors on forecasts for the new gaming cycle and the involvement of activist RC Ventures,” Telsey analyst Joseph Feldman said in the note on Monday. “We believe the current share price and valuation levels are not sustainable, and we expect the shares to return to a more normal/fair valuation driven by the fundamentals,” the firm added. GameStop has been a popular short target on Wall Street. In fact, more than 138% of its float shares had been borrowed and sold short, the single most shorted name in the U.S. stock market, according to FactSet citing the latest filings. On Jan. 11, news broke that activist investor and Chewy co-founder and former CEO Ryan Cohen is joining GameStop’s board. The stock jumped on the announcement on hopes Cohen would drive a change in strategy. The gain triggered a rush of short covering from hedge funds and traders who bet against the stock. When a shorted stock trades sharply higher, short sellers would have to buy back shares to cut their losses, which fuels the rally. GameStop has also been a hot topic in online chat rooms, Twitter and Reddit as some retail investors and day traders aim to push shares higher and squeeze out short sellers. GameStop was the most actively traded stock on the Fidelity platform on Monday, company data showed. One post on the popular “wallstreetbets” Reddit forum Monday morning said “IM NOT SELLING THIS UNTIL AT LEAST $1000+ GME.” The post quickly drew more than 5,000 comments. “It’s just another reflection of the ebullient mood,” Peter Boockvar, chief investment officer at Bleakley Advisory Group, said Monday of GameStop, “Again, it will matter when it does, whenever it does.” » Subscribe to CNBC TV: https://cnb.cx/SubscribeCNBCtelevision » Subscribe to CNBC: https://cnb.cx/SubscribeCNBC » Subscribe to CNBC Classic: https://cnb.cx/SubscribeCNBCclassic Turn to CNBC TV for the latest stock market news and analysis. From market futures to live price updates CNBC is the leader in business news worldwide. The News with Shepard Smith is CNBC’s daily news podcast providing deep, non-partisan coverage and perspective on the day’s most important stories. Available to listen by 8:30pm ET / 5:30pm PT daily beginning September 30: https://www.cnbc.com/2020/09/29/the-n... Connect with CNBC News Online Get the latest news: http://www.cnbc.com/ Follow CNBC on LinkedIn: https://cnb.cx/LinkedInCNBC Follow CNBC News on Facebook: Follow CNBC News on Twitter: https://cnb.cx/FollowCNBC Follow CNBC News on Instagram: https://cnb.cx/InstagramCNBC https://www.cnbc.com/select/best-cred... #CNBC #CNBCTV