Stock of the day: GameStop Corp.

Shares in the world’s largest video game retailer recently hit an annual high of USD 27 as Bloomberg Business Week reported that analysts have raised their targets for GameStop Corp. (NYSE:GME). With sales of physical games through stores in decline, the group is reported to be expanding into digital downloads following its acquisition of digital distribution company Spawn Labs. However, some investors are not convinced. Short interest is substantial and has peaked at a three year high of 32% of total shares outstanding on loan, making GameStop the most shorted stock in the S&P500. Almost two thirds of the stock that is available to be borrowed is out on loan.