What happened
Shares of GameStop (GME 6.84%) are on the move again, running 8.6% higher at 11:05 a.m. EST Friday on no news specific to the video game retailer, though it remains a top stock discussed on the subreddit r/WallStreetBets.
GameStop chairman Ryan Cohen also reached an agreement with Bed Bath & Beyond (BBBY) to get three seats on the home goods retailer's board of directors. Cohen has said the retailer should consider putting itself up for sale.
Image source: Getty Images.
So what
When Cohen first revealed his stake in Bed Bath & Beyond, GameStop's stock actually tumbled on the news, presumably because it would result in divided attention at a time when the video game store is still trying to engineer a turnaround.
However, it's not going to be Cohen sitting on Bed Bath & Beyond's board, but rather three associates, which could give GameStop investors confidence he will still be focused on their company.
Considering Cohen just bought 10 million shares of GameStop stock, he's certainly putting his money where his mouth is.
Now what
GameStop is still a highly shorted stock, with 24% of its float sold short, or about six days to cover (anything over seven is considered a lot). Yet with the gains GameStop's stock has made this week -- up 62% since last Friday -- short sellers have to be feeling the pinch.
That has GameStop bulls saying this could be the "mother of all short squeezes" they've been waiting for when short sellers rush to cover their positions.
Whether the MOASS they've wanted is truly at hand remains to be seen, but this meme stock has proved heartier than many of its critics originally believed.
