Is a GME short squeeze still possible?
GameStop Is Still "Squeezable"
Although less intense than at the beginning of June, GME shares remain highly shorted. And borrow rates are high enough to squeeze short sellers on any spikes in buying volume.
Today, about 24% of GameStop's float remains collectively shorted by different investors.
If you short a stock at $10, it can't go lower than zero, so you can't make more than $10 per share on the trade. But there's no ceiling on the stock. You can sell it at $10 and then be forced to buy it back at $20 … or $200 … or $2 million. There is no theoretical limit on how high a stock can go.
GME shares nearly doubled to over $300 in four weeks. Fundamentally, little more than a mixed-bag earnings report delivered last week justifies the March 2022 bullishness. It certainly “smells” like another meme-style move higher, which could still be great news for GME investors.
The intrinsic value of one GME stock under the Base Case scenario is 21.01 USD.
| Avg Vol (3 month) 3 | 13.6M |
|---|---|
| Avg Vol (10 day) 3 | 6.39M |
| Shares Outstanding 5 | 304.52M |
| Implied Shares Outstanding 6 | N/A |
| Float 8 | 253.52M |
As of January 28, 2021, the all-time highest intraday stock price for GameStop was $483.00 (nearly 190 times the low of $2.57 reached 9 months earlier in April 2020).
In October 2008, a short squeeze triggered by an attempted takeover by Porsche temporarily drove the shares of Volkswagen AG on the Xetra DAX from €210.85 to over €1000 in less than two days, briefly making it the most valuable company in the world.
What Was the Bigggest Short Squeeze in History? The biggest short squeeze in history happened to Volkswagen stock in 2008. Although the auto maker's prospects seemed dismal, the company's outlook suddenly reversed when Porsche revealed a controlling stake.
AMC has a high enough short interest to squeeze shorts from their positions in 2022. Sitting at 19% short interest, it's more than enough to get the price up well into the high hundreds of dollars per share.
Can GME reach 1000?
So, can GME stock reach $1,000 per share. It's certainly a possibility given that GameStop's dark pool trading percentage is rather high, according to Stonk-O-Tracker data. Dark pool trading in GameStop has ranged between 30%-50%. This means 30%-50% of short selling has occurred behind closed doors.
Over the next 52 weeks, GameStop has on average historically risen by 213.2% based on the past 19 years of stock performance. Is GameStop Stock Undervalued? The current GameStop [GME] share price is $38.36.
Stock Price Forecast
The 3 analysts offering 12-month price forecasts for GameStop Corp have a median target of 27.50, with a high estimate of 30.35 and a low estimate of 7.50. The median estimate represents a -29.69% decrease from the last price of 39.11.
Gamestop (GME) stock is likely to decline after the current overheated rally. The stock can still be profitable in the long term if revenue growth stays consistent. But investors should avoid buying GME stock due to the high short-term risk.
Short covering can result in either a profit (if the asset is repurchased lower than where it was sold) or for a loss (if it is higher). Short covering may be forced if there is a short squeeze and sellers become subject to margin calls.
GameStop is an American video game and gaming merchandise retailer, the shares of which closed at under $20 per share on January 12, 2021. In around 10 trading days, a series of short squeezes occurred making the stock price jump over 15 times, eventually resulting in a stock price as high as $500.
