The report stated that Icahn started building his short position in the video game retailer when the stock was trading near a peak of $483 per share, and he is betting large against GME’s shares.
Icahn is betting that GME is not trading on its fundamentals and will continue to slide further. The stock has already lost more than 50% in value in the past year. GME went for a four-for-one stock split earlier this year.
The short interest in the stock has fallen with 53.37 million shares sold short at the end of October versus 53.8 million shares in the middle of last month.
A high short interest indicates a pessimistic stance on the part of investors.
Interestingly, hedge funds are neutral about the stock with most hedge funds disposing of 47,100 shares in the past quarter, as indicated by the above graphic.