Jan 22, 2021 - Economy

GameStop stock continues to defy gravity

Source: FactSet; Chart: Axios Visuals
Source: FactSet; Chart: Axios Visuals

Shares in GameStop surged as high as $76.73 on Friday in what has been described as an "epic short squeeze."

Why it matters: The GameStop fight, with Redditors and TikTok influencers on the long side and investment professionals like Citron Research's Andrew Left on the short side, has turned ugly in recent days. But for the time being, the amateur investors are winning.

The big picture: The game being played here is much more dangerous, and much more expensive, than anything available for sale at the debt-encumbered video game retailer. For the time being, the amateurs are winning. But as the $20 decline in GameStop's share price on Friday afternoon alone shows, both sides have enormous potential for losses.

Go deeper: How high-risk traders are using Reddit and TikTok to scalp huge profits

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