Why Shares of GameStop Are Surging Today
Shares of the video game retailer GameStop (NYSE: GME) had popped nearly 26% as of 1:37 p.m. ET today as excitement over a potential short squeeze rose on social media.
GameStop is the pioneer of the meme-stock movement that took 2021 by storm, so the stock is heavily susceptible to big random moves up and down.
Today, it looks like interest in the stock on social media is building, as short interest has risen to the highest it's been in more than a year, according to analytics company Ortex. The number of shares being shorted on GameStop is about 26.4% of the free float. The rising short interest has also significantly increased the cost to borrow shares, which is typically done in the practice of short-selling. Short interest can lead to a short squeeze, which has propelled several big GameStop moves in the past.
Source Fool.com
