Categories: Overall

Video game retailer GameStop’s stock soared more than 70 percent on Friday

Trading in stock of video game retailer GameStop (GME) was halted briefly Friday, as it soared more than 70 percent. It was due partly to the enthusiastic support of a group of Reddit day traders.

The stock is up more than 250 percent year to date. short-seller Citron research predicted the price would drop. Members of the Reddit board criticized Citron on the Reddit message board.

The hype generated by r/wallstreetbets helped create what’s known as a’short squeeze’. Some investors, known as shorts, essentially bet that a company’s stock will fall. They borrow stock from other investors and sell it – with plans to buy it back when the prices fall and then return it to the original owner.

Gamestop is the most-shorted stock in the market, CNBC says. More than 138 percent of its shares are sold short, making it a prime target for a short squeeze.

Citron said Friday it would no longer comment on the GameStop stock because of’the angry mob who owns this stock’.

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