GameStop Falls 22% After Bitcoin Announcement and Spike in Short Selling
GameStop (NYSE:GME) dropped 22% on March 27 after revealing plans to invest in Bitcoin (BTC-USD), triggering a surge in short selling and activating a short sale restriction on the New York Stock Exchange.
The stock had briefly risen 12% after the announcement but reversed course as short volume jumped 234%, totaling nearly 31 million sharesits second-largest one-day spike, according to TradingView.
Warning! GuruFocus has detected 4 Warning Sign with GME.
The drop triggered the restriction rule after shares fell more than 10% from the prior close. Kevin Malone, CEO of Malone Wealth, claimed on X that trading volumes pointed to possible naked short selling.
GameStop also announced a $1.3 billion convertible notes offering, drawing analyst pushback. Tom Sosnoff, CEO of Tastylive, said the move looked like a fallback after failing to find better investments.
The Bitcoin move drew comparisons to Strategy's (NASDAQ:MSTR) 2021 play. But analysts said GameStop's struggling business makes it a riskier bet. Wedbush's Michael Pachter questioned why investors would pay double the company's cash just for crypto exposure.
The reaction highlights investor doubts about GameStop's direction in the digital asset space.
This article first appeared on GuruFocus.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
34 minutes ago
- Yahoo
Why Roku Stock Jumped 13% This Morning
Roku stock soared after announcing an exclusive advertising partnership with Amazon's ad-selling service. Advertisers will be able to reach 80% of U.S. connected TV households through Amazon's platform. Amazon stock moved slightly on the news, but Roku saw a far bigger boost. 10 stocks we like better than Roku › Shares of Roku (NASDAQ: ROKU) rose as much as 13.4% on Monday morning, dropping back to a 10% gain by noon ET. The media-streaming technology expert announced an advertising partnership with Amazon (NASDAQ: AMZN). The new deal gives advertisers access to Roku's media-playing platform through the Amazon DSP advertising platform. It's an exclusive partnership with deeper data access than Roku's existing ad-sales deals, making Amazon's service the easiest route to placing ads across all of Roku's original and third-party content services. The companies said that this combination grows the effective market reach for ad buyers while also placing more varied marketing messages in front of the consumer. Between Roku's media players and the Amazon Prime Video service, Amazon DSP now reaches 80% of American media households. Amazon stock also rose slightly on the news, but the partnership should make a bigger difference to Roku's business. The company now has direct ad placement deals with the three largest ad management platforms. After Monday's price jump, Roku's stock has gained 42% in 12 months. It still looks quite affordable at 2.8 times trailing sales, despite the company's habit of delivering year-over-year revenue growth of 15% or more in recent quarters. Before you buy stock in Roku, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Roku wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Anders Bylund has positions in Amazon and Roku. The Motley Fool has positions in and recommends Amazon and Roku. The Motley Fool has a disclosure policy. Why Roku Stock Jumped 13% This Morning was originally published by The Motley Fool
Business Wire
34 minutes ago
- Business Wire
Deadline Soon: NET Power Inc. (NPWR) Investors Who Lost Money Urged To Contact The Law Offices of Frank R. Cruz About Securities Fraud Lawsuit
LOS ANGELES--(BUSINESS WIRE)-- The Law Offices of Frank R. Cruz reminds investors of the upcoming deadline to participate as a lead plaintiff in the securities fraud class action lawsuit filed on behalf of investors who acquired NET Power Inc. ('Net Power' or the 'Company') (NYSE: NPWR) securities between June 9, 2023 and March 7, 2025, inclusive (the 'Class Period'). IF YOU ARE AN INVESTOR WHO LOST MONEY ON NET POWER INC. (NPWR), CLICK HERE TO PARTICIPATE IN THE SECURITIES FRAUD LAWSUIT. What Happened? On November 14, 2023, before market hours, Net Power released its third quarter 2023 financial results, disclosing that due to 'tightness in the global supply chain,' it would be 'incorporating a 12-month cushion into [its] expected schedule' for its first utility-scale plant, Project Permian. The Company stated that it was 'now expecting to achieve initial power generation sometime between the second half of 2027 and first half of 2028,' compared to the initial schedule of having the plant operational by 2026. On this news, Net Power's stock price fell $2.47, or 18.5%, to close at $10.85 per share on November 14, 2023, thereby injuring investors. Then, on March 10, 2025, Net Power released its fourth quarter and full year 2024 financial results, disclosing the Company had 'finalized the Front-End Engineering and Design (FEED) for Project Permian' but the 'cost estimate was significantly higher than expected and, as a result, the Company has paused long-lead releases for the project.' Specifically, the Company revealed it is 'estimating total installed cost will be $1.7 billion to $2 billion.' On this news, Net Power's stock price fell $2.18, or 31.5%, to close at $4.75 per share on March 10, 2025. Then, on April 15, 2025, Net Power announced that its President and Chief Operating Officer and Chief Financial Officer would depart the Company. On this news, Net Power's stock price fell $0.13, or 5.8%, to close at $2.13 per share on April 16, 2025, thereby injuring investors further. What Is The Lawsuit About? The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants failed to disclose to investors that: (1) Net Power was unlikely to complete Project Permian on schedule, and the project was likely to be significantly more expensive than Defendants had represented, because of, inter alia, supply chain issues and numerous site- and region-specific challenges; (2) accordingly, Defendants' projections regarding the time and capital needed to complete Project Permian were unrealistic; (3) the increased time and capital needed to complete Project Permian were likely to have a significant negative impact on the Company's business and financial results; and (4) as a result, Defendants' positive statements about the Company's business, operations, and prospects were materially misleading and/or lacked a reasonable basis at all relevant times. If you purchased or otherwise acquired NET Power securities between June 9, 2023 and March 7, 2025, the deadline to seek appointment as the lead plaintiff in the securities fraud class action is June 17, 2025. Contact Us To Participate or Learn More: If you wish to learn more about this class action, or if you have any questions concerning this announcement or your rights or interests with respect to the pending class action lawsuit, please contact us: Frank R. Cruz The Law Offices of Frank R. Cruz, 2121 Avenue of the Stars, Suite 800, Century City, California 90067 Email us at: info@ Call us at: 310-914-5007 Visit our website at Follow us for updates on Twitter: If you inquire by email, please include your mailing address, telephone number, and number of shares purchased. To be a member of the class action you need not take any action at this time; you may retain counsel of your choice or take no action and remain an absent member of the class action. This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.
Yahoo
35 minutes ago
- Yahoo
Why Sarepta Therapeutics (SRPT) Stock Is Down Today
Shares of biotech company Sarepta Therapeutics (NASDAQ:SRPT) fell 44.4% in the afternoon session after the company reported a second death linked to its Duchenne muscular dystrophy gene therapy. Elevidys. In response, the company temporarily halted shipments of Elevidys for patients who are unable to walk and paused an associated clinical trial. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Sarepta Therapeutics? Access our full analysis report here, it's free. Sarepta Therapeutics's shares are very volatile and have had 25 moves greater than 5% over the last year. But moves this big are rare even for Sarepta Therapeutics and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was 3 months ago when the stock dropped 24.9% on the news that the company reported the death of a Duchenne muscular dystrophy patient following treatment with its gene therapy, ELEVIDYS. The patient reportedly suffered acute liver failure, a known risk of AAV-mediated gene therapies. However, Sarepta suggested that a recent cytomegalovirus (CMV) infection might have worsened the condition. Despite this, the company maintained that ELEVIDYS still had a favorable benefit-risk profile. It planned to update the prescribing information and inform regulators, clinical investigators, and prescribing physicians of the incident. Markets were likely reacting negatively due to concerns that the event could increase regulatory scrutiny, make doctors more hesitant to prescribe the therapy, or slow adoption overall. ELEVIDYS had been a big piece of Sarepta's growth story as it contributed more than 50% of sales in the Q4'2024 quarter. Any threat to its continued adoption could put pressure on the stock. Sarepta Therapeutics is down 84.1% since the beginning of the year, and at $19.70 per share, it is trading 88% below its 52-week high of $163.85 from June 2024. Investors who bought $1,000 worth of Sarepta Therapeutics's shares 5 years ago would now be looking at an investment worth $122.96. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
