GameStop Shares Soared but then Fell After Citron Research Cancels Event

Shares of gaming retailer GameStop were heading higher nearly 15% on Thursday in midday trading after Wall Street anxiously awaited a planned livestream from Citron Research.

Citron Research, a widely recognized short seller, was going to give five reasons to sell the video game and consumer electronics retailer’s shares. The event had been originally planned for Wednesday at 11:30am EST but was cancelled due to the innauguration of President Biden and moved to Thursday.

Due to technical difficulties, the livestream was delayed slightly, then altogether canceled.

“Too many people hacking Citron twitter, will record and post later today. $GME going to $20 buy at your own risk,” Citron tweeted.

Citron Research said on Twitter that it expects GameStop to drop to $20 a share.
Citron Research also said in another tweet. “Stock back to $20 fast. We understand short interest better than you and will explain.”

Shares of GameStop spiked as much as 14.4% to an intraday high of $44.75 as the livestream failed to proceed, before paring gains.

Earlier this month, GameStop named three new directors as part of its agreement with RC Ventures, its second-largest shareholder.

One of the directors is Ryan Cohen, manager of RC Ventures and co-founder of pet-supplies specialist Chewy.com.

According to GameStop, the three executives have “deep expertise in e-commerce, online marketing, finance and strategic planning.”

Adding them to the board “will help us accelerate our transformation plans and fully capture the significant growth opportunities ahead for GameStop,” said GameStop Chairwoman Kathy Vrabeck.

Not long ago GameStop reported comparable-store sales increased 4.8% and e-commerce sales quadrupled during the holiday shopping season. Total sales declined 3.1%.

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.