MW GameStop stock continues its climb amid squeeze chatter

By James Rogers

Growing sentiment on Stocktwits that 'a new squeeze is building'

Shares of GameStop Corp. continued their rally despite no apparent news Tuesday, with the videogame retailer's stock climbing 2.7%.

GameStop shares $(GME)$ ended Monday's session up 6.3% and the stock has climbed for three consecutive days, and five of the past six trading sessions, according to Dow Jones Market Data.

The company has not put out a press release since Nov. 18, when the original meme-stock company announced the appointment of Nat Turner its board of directors.

Related: GameStop appoints Nat Turner to board, tightens links with Collectors

Nonetheless, GameStop is up over 50% over the past month, according to Stocktwits, a social platform for investors and traders.

Stocktwits Director of Community Noor Al told MarketWatch that there is "a lot of discussion" about GameStop on the platform, with the stock currently No. 4 on Stocktwits' most-active stocks list. Previously, near the beginning of the day, GameStop was No. 1 on the list, he added.

"We posted, asking our users whether GME is starting a new squeeze or just a pump, and 2.3K people have voted in just five hours, with 60% saying that yes, a new squeeze is building," Al said.

Related: GameStop CEO Ryan Cohen is happy about Trump's victory. The stock is climbing.

"We also asked our users to interact with a post if they're holding GME, and in just four hours received 800 likes, which is very high from a single post," Al told MarketWatch.

Short interest as a percentage of GameStop's public float of shares is 8.2%. The stock is trading on volume of 21.67 million shares, above its 65-day average of 10.12 million shares.

GameStop's stock soared earlier this year after the return of influential trader Keith Gill, also known as Roaring Kitty, to social media. Gill was an important figure in the 2021 meme-stock frenzy that sent shares of GameStop and AMC Entertainment Holdings Inc. $(AMC)$ skyrocketing. The trader discussed his GameStop position in a closely followed YouTube livestream on June 7, his first in three years. Gill said he is still a "believer" in GameStop and discussed what he described as an "overemphasis" on GameStop's legacy business. "They are in the transformation stage," he said, before talking about GameStop Chief Executive Ryan Cohen. "I believe this guy - he might be able to do it," Gill added.

Related: With meme stocks in a lull, here's where retail investors may turn their attention next

Cohen, the co-founder and former CEO of online pet products retailer Chewy Inc. $(CHWY)$, was named GameStop's CEO in September 2023, marking the latest chapter in his attempt to breathe life into the retailer.

However, Roaring Kitty has not posted on X since Sept. 6, when he made a cryptic post widely interpreted as a reference to Chewy. The following month, a regulatory filing revealed that Gill had sold his Chewy stake.

-James Rogers

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November 26, 2024 15:45 ET (20:45 GMT)

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