The Next GameStop? Gains 70% in Apparent Short Squeeze

By Timothy Sykes

Last updated on April 18, 2022
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Short sellers appear to have learned nothing so far in 2021.

On Tuesday, Rocket Companies, Inc. (NYSE: RKT) rallied for a third straight day after last Thursday’s well-received earnings report.

The finance company, which owns Rocket Mortgage, announced earnings of $1.14 per share, beating the analyst estimates of $0.86. The company also announced a special dividend of $1.11 per share.

The stock rallied off of its Thursday close of less than $20 per share to close on Monday above $24 — an impressive 22% gain in just two trading days.

But during the rally, there was a “large amount of short selling” according to S3 Analytics. Short interest rose to nearly 46% of the public float.

According to reporting from MarketWatch, S3 Analytics wrote that “RKT’s stock price and watchlist in kind. FOR EXAMPLE, a period of deflation might bring more opportunities for short selling activity is reminiscent of another recent highflying ‘meme’ stock — GameStop Inc.”

RKT’s stock price gained as much as 77%, peaking at $43 per share during Tuesday’s trading session. That’s an increase of 116% off of Thursday’s closing price.

The stock closed at $41.60 for a gain of 71% on the day. The rally has continued after hours; at writing, the stock price reached as high as $45.50.

GameStop Corp. (NYSE: GME) rallied as much as 2,300% in January after short interest rose to 140% of the public float. Short sellers lost more than $20 billion in that ordeal.

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Comments (1)
Author imageTimothy Sykes
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