GameStop Corp. ((NYSE: GM)E) stock jumped another 100% Monday morning to an all-time high of over $140. Just four months ago, the stock was worth only $6, and at the start of January it was worth $18, making for a 500% year-to-date return.
On Monday, Loop Capital analyst Anthony Chukumba came on CNBC’s “Squawk on the Street” to talk about GameStop and to share his take as a fundamental analyst.
“This stock has completely disconnected from the fundamentals,” the analyst said. “The company’s fundamentals are headed in the opposite direction of the stock price.”
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The steep jump in stock price triggered many hedge funds and investors who shorted GameStop to scramble to buy shares to cover their losses, only driving the stock higher.
“This is very much being driven by retail investors, individual investors, many of which are trading on Robinhood,” Chukumba said.
“The shorts are being squeezed, and I just don’t think in this scenario I can add a lot of value as a fundamental analyst.”
The popular Reddit thread WallStreetBets was focused primarily on GameStop over the past week, with a Monday post “I’M NOT SELLING THIS UNTIL AT LEAST $1000 GME” obtaining over 25,000 upvotes and 5,000 comments in seven hours.
GameStop‘s surge in price action is “gamification of Wall Street,” said Joe Terranova.
It’s a fiasco that “Wall Street shouldn’t be proud of,” he said.
Last week, Citron’s Andrew Left issued a short report and highlighted reasons the stock is going back to $20.
Steve Weiss said he bought GameStop puts in March.
“This is all going down,” he said. “This should be a $2 stock.”
GME price Action: GameStop shares were up 24.29% at $80.80 at last check Monday.
Tyree Gorges contributed to this report.
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