GameStop surges for second day as cost to borrow spikes

ContextLogic Holdings

26/05/2022 21:16

(Updates to reflect closing prices)
** Shares of GameStop Corp  GME.N  ended 11.5% higher on Thurs
as retail investors eye rising cost to borrow shares and
speculate about potential short squeeze
    ** Short bets against the struggling videogame retailer
recently rose to 24% of float, equivalent to $1.75 bln, per
financial analytics firm S3 Partners
    ** The cost to borrow incremental shares to short sell
recently hit an annualized interest rate of almost 40%, compared
to about 6% earlier this month, also per S3 Partners
    ** Stock now up 44% in past two sessions, with investors on
Stocktwits speculating about potential short squeeze
    ** GME down around 60% from its record high close in January
2021, when retail traders drove the stock soaring in a massive
short squeeze that punished several hedge funds
    ** Other meme stocks AMC Entertainment Holdings Inc  AMC.N ,
BlackBerry Ltd  BB.TO  and Newegg Commerce Inc  NEGG.O  up 2% or
more
    ** GME set to report results on June 1

 (Reporting by Noel Randewich)
 ((noel.randewich@tr.com; Twitter: @randewich))