
Video game retailer GameStop Corporation (NYSE:GME) was involved in one of the most famous short squeezes of all time, but the short sellers betting against the stock aren't scaring away investor and CEO Ryan Cohen.
What Happened: Cohen disclosed a 9% stake in GameStop in August 2020 and later increased his stake in the company to 13% later that year. The former Chewy founder became chairman of the company in June 2021 and was announced as CEO in September 2023.
Cohen said he was fascinated by the amount of hatred towards investing in GameStop, even before he made his own investment.
"There's always been a lot of people on the other side of the trade," Cohen told Charles Payne in a recent Fox Business interview.
Cohen and other retail traders were able to initiate a large short squeeze as hedge funders and big investors bet against GameStop in early 2021. While the number of short sellers against GameStop has declined, around 18.9% of the company's float is short today.
Cohen said he doesn't have much respect for short sellers who are betting on someone's failure. "I think it’s un-American to bet against business, but it's a free market."
He said short sellers could ultimately need a cover on their position, which could be a good thing as well.
While Cohen is against short sellers, he said it's fine if people are on the other side. "I'm not scared of the short sellers. They can short the stock."
Cohen said he spends his time focusing on running the business, rather than on short sellers.
"The stock will take care of itself."
What's Next: Cohen covered numerous topics during his interview, including where the company is headed, if GameStop will pay dividends, why trading cards matter and why the company is investing in Bitcoin.
He recalled that his initial investment in GameStop was a passive one before he was asked to join the Board of Directors. Cohen then saw the need to clean out the boardroom and cut costs.
Today, GameStop has fewer stores but is a more profitable company, according to Cohen. "We're generating profits every single quarter now."
Cohen added that the retail business is now profitable, which has led to a shift in focus away from hardware to collectibles, such as trading cards, which he said are much more durable.
"We've come a long way."
On the subject of dividends, Cohen said there are tax implications to consider, and it might be better to keep the money in the company and look for the next "right opportunity."
GME Price Action: GameStop stock was up 0.6% to $23.36 on Wednesday versus a 52-week trading range of $18.73 to $35.81. GameStop stock is down 23.8% year-to-date in 2025. Over the last five years, GameStop’s stock has increased by over 2,250%.
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