Why GameStop Is Heading Lower Today
Shares of GameStop (NYSE: GME) are down about 2% in morning trading Wednesday on a day the overall market is flat. Yet that about sums up how the video game retailer is trading in the month of August as its stock is virtually unchanged since the end of July.
As one of the original meme stocks, the negligible advance or decline of the stock in nearly three weeks is unusual, but the short interest in GameStop shares continues to diminish. Shares sold short fell to almost 7.7 million at the end of July, or 12.3% of outstanding shares. It was the fourth consecutive period of decline, and days to cover, or the amount of time it would take short-sellers to cover their position, has been reduced to just over a day (anything over seven days is considered a lot and makes the stock ripe for a short squeeze).
Investors keep holding on for a GameStop moonshot. Image source: Getty Images.
Source Fool.com
