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Citron no longer shorting GameStop shares, says it respects 'market’s irrationality'

Published 06/12/2024, 08:30 PM
© Reuters

Citron Research is no longer shorting GameStop (NYSE:GME), the short seller announced in an X post on Wednesday.

The firm said its decision “is not because we believe in a turnaround for the company fundamentals will ever happen, but with $5 billion in the bank, they have enough runway to appease their cult-like shareholders.”

“Despite analysts setting an $11 target today, we respect the market's irrationality. After all, Dogecoin remains a $20 billion entity,” the firm noted.

Although the increased share count may moderate the “mob mentality,” Citron said it prefers to stay on the sidelines, for now.

GME shares rose 2.5% in premarket trading, after surging nearly 23% a day earlier.

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