LONDON, Jan 27 — GameStop shares surged another 60 per cent today in pre-market trading, boosted by increased interest among amateur investors who have lifted the share price by 700 per cent over the past two weeks.
But some hedge funds have refused to budge from their bearish bets, with FIS’ Analytics data showing investors had piled on US$2.2 billion (RM8.9 billion) in bearish bets on the US video game retailer — a whopping 20 per cent of its market capitalisation,
In the meantime, Reddit’s Wallstreetbets stock trading discussion group were backing the company, buying shares and call options on the stock.
A similar euphoria has boosted BlackBerry and Nokia .
Meanwhile in Europe, shares of Evotec and Varta jumped on a chatter that Melvin Capital Management was being forced to unwind its short positions to cover losses on its other bearish bets, including GameStop. — Reuters
