Skip to main content

Market Overview

Market Pros On GameStop: 'Wall Street Shouldn't Be Proud'

Market Pros On GameStop: 'Wall Street Shouldn't Be Proud'

GameStop Corp. (NYSE: GME) stock jumped another 100% Monday morning to an all-time high of over $140. Just four months ago, the stock was worth only $6, and at the start of January it was worth $18, making for a 500% year-to-date return. 

On Monday, Loop Capital analyst Anthony Chukumba came on CNBC’s “Squawk on the Street” to talk about GameStop and to share his take as a fundamental analyst.

“This stock has completely disconnected from the fundamentals,” the analyst said. "The company’s fundamentals are headed in the opposite direction of the stock price.”

Related Link: 'Peak Stupidity': The End Of The GameStop Short Squeeze Trade? 

GameStop's Retail-Driven Rally: The GameStop rally started Jan. 11 when Ryan Cohen, co-founder of Chewy, announced that he would be joining the video game retailer's board. 

The steep jump in stock price triggered many hedge funds and investors who shorted GameStop to scramble to buy shares to cover their losses, only driving the stock higher.

"This is very much being driven by retail investors, individual investors, many of which are trading on Robinhood," Chukumba said.

"The shorts are being squeezed, and I just don’t think in this scenario I can add a lot of value as a fundamental analyst." 

The popular Reddit thread WallStreetBets was focused primarily on GameStop over the past week, with a Monday post “I’M NOT SELLING THIS UNTIL AT LEAST $1000 GME” obtaining over 25,000 upvotes and 5,000 comments in seven hours. 

Weiss Says GameStop 'Should Be A $2 Stock': On CNBC's "Fast Money Halftime Report," the investment committee shared their thoughts on GameStop. 

GameStop's surge in price action is "gamification of Wall Street," said Joe Terranova.

It's a fiasco that "Wall Street shouldn't be proud of," he said. 

Last week, Citron's Andrew Left issued a short report and highlighted reasons the stock is going back to $20.

Steve Weiss said he bought GameStop puts in March.

"This is all going down," he said. "This should be a $2 stock."

GME Price Action: GameStop shares were up 24.29% at $80.80 at last check Monday.

Tyree Gorges contributed to this report. 


Related Articles (GME)

View Comments and Join the Discussion!

Posted-In: Andrew Left Anthony ChukumbaAnalyst Color Short Sellers Top Stories Movers Media Trading Ideas Best of Benzinga

Latest Ratings

NIUDaiwa CapitalInitiates Coverage On41.5
QMCONorthland Capital MarketsInitiates Coverage On12.0
IBKRJefferiesInitiates Coverage On89.0
MRETFTD SecuritiesDowngrades18.5
SWKSGoldman SachsDowngrades135.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Everything you need to know about the latest SPAC news.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at