What's Going On With GameStop Stock?

GameStop Corp (NYSE:GME) shares are trading higher Tuesday, adding to gains of nearly 14% over the past week. Here’s a look at what you need to know.

What To Know: GameStop shares are trending across various social sites on Tuesday as traders continue to highlight high short interest in the name and discuss a potential repeat of the historic meme stock short squeeze of 2021.

Meme stock trader Keith Gill, who is often credited with sparking the meme stock madness of 2021 that saw GameStop and related names squeeze higher, made a return to social media recently following three years of silence. 

Gill’s social media return appears to have sparked increased volatility in GameStop and other retail darlings. The trader has posted position updates on Reddit and even held a livestream during market hours on his YouTube channel. His latest post, however, has traders questioning his next move.

Near the end of last month, Gill disclosed a 6.6% stake in pet retailer Chewy Inc (NYSE:CHWY), which was founded by GameStop CEO Ryan Cohen. The SEC filing confirming his stake came just days after the meme stock trader posted an image of a dog on X, which spurred speculation that he may be interested in Chewy.

See Also: June Retail Sales Stagnate: Traders Fully Price In September Interest Rate Cut

Gill hasn't posted an actual position update on social media since he shared a screenshot on Reddit showing that he was holding 9.001 million shares of GameStop, up from about 5 million shares at the prior update. Some have speculated that Gill may have sold his GameStop stake following the company's lackluster annual shareholder meeting. Others are trying to figure out what he could be planning to do next.

There are still plenty of people betting that GameStop is overvalued. Approximately 12% of the float is currently sold short, according to data from Benzinga Pro.

GME Price Action: GameStop shares were up 2.70% at $27.73 at the time of publication, according to Benzinga Pro.

Photo: JJBers from Flickr.