1. Citron Research’s Position Change:
– Citron Research announced it is no longer short on GameStop ($GME).
– This decision is not based on an expectation of a turnaround in the company’s fundamentals.
2. Financial Standing of GameStop:
– GameStop has $5 billion in cash, providing a significant financial cushion.
– This financial position is considered sufficient to maintain shareholder confidence.
3. Market Sentiment and Comparisons:
– Citron acknowledges the market’s irrationality, comparing it to the valuation of Dogecoin, which is around $20 billion.
– Despite Wedbush’s $11 target price for GameStop, Citron respects the unpredictable nature of the market.
4. Future Outlook by Citron:
– Citron’s Andrew Left mentioned that he would consider shorting GameStop again if the stock price rises to $45-$50.
5. Citron’s View on Shareholder Behavior and Market Actions:
– Citron notes the “cult-like” behavior of GameStop’s shareholders.
– They also commented on the impact of an increased share count, which might moderate shareholder enthusiasm.
– Citron’s statement included a critical remark about “the Kitty live stream,” describing it as an insult to capital markets.
Gamestop Shares Reverse Premarket Gains, Last Down 4.5%.
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