GameStop Lower Ahead of Short Seller's Livestream Call
GameStop (GME) - Get Report shares on Wednesday were lower ahead of a planned late-morning livestream by short seller Citron Research, which says the videogame retailer's stock is overpriced.
Shares of the Grapevine, Texas, company at last check were down 5% to $37.40.
In a tweet, Citron said that on Wednesday at 11:30 a.m. U.S. Eastern, it will "livestream the 5 reasons GameStop $GME buyers at these levels are the suckers at this poker game."
"Stock back to $20 fast," the company said. "We understand short interest better than you and will explain. Thank you to viewers for pos feedback on last live tweet."
GameStop's stock climbed on Tuesday despite the negative prediction.
The company did not immediately respond a request for comment, but several people did make their feelings known on Twitter.
"I love how he’s saying 'tomorrow' Why not today?" one commenter about Citron. "He knows well he’s killing momentum today and stock ain’t going to squeeze higher until he speaks, as people will wait to hear what he has to say!"
"If you're so confident why even release this information?" another said. "You expect it to go down to $20 so just keep shorting and the information to yourself."
Another commenter agreed with Citron, saying, "for a company that's going broke, GameStop stock is over priced."
GameStop recently named three new directors as part of its agreement with RC Ventures, the company's second-largest shareholder.
One of the directors is Ryan Cohen, who manages RC Ventures. Cohen founded and was chief executive of the pet-products provider Chewy (CHWY) - Get Report. He led the company through its $3.3 billion sale to PetSmart.
In December, Citron Research published a report calling DoorDash (DASH) - Get Report the "most ridiculous IPO of 2020." The San Francisco food-delivery company's shares were up 6.9% at $200.06.
