Citron Research Abandons GameStop (GME) Stock Short Position

Well, it looks like Roaring Kitty has taken a 2-0 lead on Citron Research and Andrew Left. Back in 2021, Citron shorted GameStop (NYSE:GME) amid the meme stock craze propelled by Kitty, whose real name is Keith Gill. The short seller ended up taking a 100% loss on his position as GME squeezed higher in historic fashion. Upon Gill’s return in May, Citron resumed its GameStop short, only to close it and then reopen it the following month. “The first time, three-and-a-half-years ago, (GameStop) was a cultural phenomenon, and that’s played out by now,” said Left. “The company has deteriorating financials and is a good short.” Now, Citron has closed its short yet again, citing the company’s heightened cash balance from its recent at-the-market offerings. Citron is no longer short $GME. It's not because we believe in a turnaround for the company fundamentals will ever happen, but with $4 billion in the bank, they have enough runway to appease their cult like shareholders. Despite Wedbush setting an $11 target today, we respect the…— Citron Research (@CitronResearch) June 12, 2024GME Stock: Citron Closes Short Position Citron added that he respects the market’s irrationality, citing that Dogecoin (DOGE-USD) currently has a $20 billion market capitalization despite its lack of fundamental value. He also noted that he would remain on the sidelines with GME “for now.” GameStop’s surge has allowed the company to raise billions of dollars in cash. It announced an up to 45 million share offering on May 17 and another up to 75 million share offering on June 7. The company maxed out both of these offerings, raising a total of $3.07 billion, while its cash, cash equivalents and marketable securities totaled $1.08 billion as of May 4. Now, the video game retailer has over $4 billion of cash at its disposal, putting it in a very flexible position. This cash could potentially be used for an acquisition of another company or whatever else CEO Ryan Cohen has in mind. As for Gill, the meme stock advocate still owned a massive position in GME as of the close on June 10. Gill owned five million shares bought at an average price of $21.27 and 120,000 $20 call options expiring on June 21, as well as $29.40 million in cash. His overall GameStop position was in the green with a total gain of $31.51 million or 18%. On the date of publication, Eddie Pan did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines. Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.Consumer Discretionary, Retail, Technology, Video GamesMeme Stocks