GME Stock Forecast: GameStop slips lower after Ryan Cohen abruptly ends meme stock short squeeze

NYSE:GME fell by 3.80% during Friday’s trading session.
Bed Bath and Beyond fell a further 40% after RC Ventures sold its stake on Thursday.
Meme stock traders are not happy with Cohen’s decision to sell BBBY.

Stocks Reporter FXStreet

NYSE:GME slumped lower again on Friday as the original meme stock closed the week with a near 10% loss. Shares of GME dropped by a further 3.80% and closed the trading session at a price of $36.49. All three major indices closed the week in the red, snapping the S&P 500’s four-week winning streak. Additional comments from the Fed reiterated its hawkish stance on interest rates for what could be the remainder of the year. Overall, the Dow Jones dropped by 292 basis points, while the S&P 500 and the NASDAQ tumbled by 1.29% and 2.01% respectively during the session.

Stay up to speed with hot stocks' news!

The meme stock short squeeze that has been dominating financial headlines came to an abrupt end. GameStop Chairman Ryan Cohen sold all of this stake in BBBY, causing the stock to tank by a further 40.54% on Friday. Cohen held a 10% stake in the company and recently ignited the short squeeze by buying a large amount of out of the money call options for January of 2023. On Thursday, it was revealed that Cohen’s firm RC Ventures sold its entire stake and call options at a massive profit.

GameStop stock price

Understandably, this move by Cohen has raised the ire of meme stock traders around the world. When you zoom out, the whole order of events actually looks like a well orchestrated pump and dump scheme. While Cohen did nothing wrong and did a nice job of taking profits on this unlikely squeeze, meme stock traders are still upset that he decided to sell high and ignore the rule of having diamond hands.

Like this article? Help us with some feedback by answering this survey:

Author

Stocks Reporter

FXStreet

GBP/USD advaces beyond 1.3450 after BoE decision, US Q2 GDP

GBP/USD gains positive momentum on Thursday, surpassing 1.3450 and trading at fresh multi-week highs. The Bank of England decided to maintain the benchmark rate unchanged at 3.75%. The MPC voted 6-3 to keep rates on hold, with the 3 dissenters favoring a rate hike. US Q2 GDP missing expectations helped the pair advance, while renewed US Dollar weakness across the FX board pushed the pair further up ahead of the monthly close.

EUR/USD confortable around 1.1530, highest in six weeks

The EUR/USD pair trades around 1.1530 in the American session on Thursday, reaching fresh six-week highs. The US Dollar is in sell-off mode, with multiple factors weighing on the American currency. Not only did the Federal Reserve vote divided to keep rates on hold on Wednesday, creating doubts about a September hike, but US Q2 GDP missed expectations. A suspected JPY intervention adds pressure on the Greenback.

Gold recovers the $4,100 level as US Dollar weakens further

Gold trades just above $4,100 amid a US Dollar sell-off. The Greenback enjoyed some near-term demand following Wednesday's post-FOMC downfall, but was unable to retain its gains. The preliminary estimate of the US Q2 GDP showed the economy grew at an annual rate of 1.5%, missing the market's expectations of 2.1%.

Bank of Japan set to keep interest rates unchanged after suspected Yen intervention

Investors are turning their attention to the Bank of Japan’s monetary policy announcement on Friday, after the Japanese Yen staged a dramatic rebound during Thursday's American session. The move came amid growing speculation that Japanese authorities intervened in the foreign exchange market after USD/JPY tumbled from above 163.00 to below 158.00 within minutes.

Aave to sunset Sonic, Aptos, zkSync, Scroll reserves, affecting $98 million in supply

Aave is planning to sunset 75 low-activity reserves across its decentralized finance protocol as part of a broader effort to reduce operational, technical and economic risks across its network of deployments.

9-3: Is the Federal Reserve’s vote tally Warsh's new forward guidance?

The rate did not move. Neither did the statement, and that’s the more interesting fact. Set the July 29 Federal Open Market Committee (FOMC) statement beside the one issued on June 17, and the two documents are identical apart from a single verb and a paragraph at the bottom naming three dissenters.