There are no shares of GameStop (NYSE:GME) stock left to short, according to Fintel. As a result, GME stock could easily undergo a short squeeze.
Also increasing the likelihood of a short squeeze in GME are the better-than-expected first-quarter financial results reported by another meme stock: AMC Entertainment (NYSE:AMC).
More About the Short-Interest Data
As of earlier this morning, there were no shares of GME left to short, according to Fintel’s data. Short interest accounted for 21% of GME’s float, and shorts had 21.79 days left to cover.
Fintel’s data set does have some limitations, however. Its database only shows the number of shares available to short at the leading prime brokerages. Thus there still may be some shares in “other brokers or dark pools.”
AMC’s Q1 Results
Both AMC and GME stocks are intertwined in the “meme stocks” retail trading crowd.
AMC reported that its revenue had jumped 21.5% year-over-year to $854 million, $22.7 million above analysts’ average estimate. The company’s loss per share came in at 13 cents, 5 cents higher than analysts’ mean outlook.
Its EBITDA, excluding certain items, came in at $7.1 million, leading CEO Adam Aron to note that “The first quarter of 2023 and fourth quarter of 2022 mark the first two consecutive quarters of positive Adjusted EBITDA since March of 2020 .” However, the company utilized nearly $190 million of cash to fund its operating activities in Q1.
In early trading, AMC stock is climbing 4%.
GME Stock: Questioning GameStop’s Outlook
In a recent column entitled “Why GameStop Investors Probably Won’t Win the Game,” I contended that GME had “paused its e-commerce plans too early, badly undermining the outlook of GME stock” and asserted that the retailer’s longer-term outlook was poor.
Like many others, I noted that the company had squeezed out a small Q4 profit as a result of cutting costs and asserted that GME is likely to be hurt by the small number of video games currently being purchased in physical form.
On the date of publication, Larry Ramer 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.
