GameStop is only up 100% today to $300 a share. What’s going on? Whelp, the number of shares short at the end of December was 71 million. The number of shares outstanding is 51mm. That’s right – more shares were shorted than existed.
Now everyone is in a huge scramble to cover their shorts pushing the price through the roof.
This happened a few times before. The first story I’ll share is that of VW. In 2008, a short squeeze made VW the most valuable company IN THE WORLD. (Maybe Tesla isn’t overpriced)
The issue? Once the squeeze was over, the stock crashed 93% and is still – 13 years later – 80% off the high it hit in 2008.
GameStop buyer beware.
