Shares of GameStop (NYSE:GME) jumped as much as 28.2% in trading on Tuesday, despite a short-seller saying the stock will drop by nearly half. At the market's close, shares were still up 10.9% on the day.
Citron Research, which is a well-known short-seller, said in a tweet today that they will livestream five reasons GameStop buyers are "suckers" tomorrow. They even went as far as to say the stock will fall back to $20 per share "fast."
The reaction obviously wasn't what Citron was looking for today, but traders have a different view of the stock than the short-seller. GameStop's shares were up big on more than five times the average volume for the stock.
GameStop's shares have benefited from a boom in online sales, and investors hope that a focus online will keep the company growing. But at this point, shares are up 15 times from their 52-week low, and investors are starting to see it as expensive.
That doesn't mean shares won't continue their move higher, but momentum stocks don't trade higher forever. Unless this becomes a long-term growth stock, the run could be over for GameStop any day.