(MENAFN- ProactiveInvestors)Hordes of short-sellers in Gamestop (NYSE:GME) appear to have been richly rewarded as the video game retailer slumped almost 9% after its earnings missed expectations. Gamestop said to be the S&P 500's 'most shorted' stock told the market that sales in the third quarter (to October 31) were down 3.6% and net income fell 11.4% year-on-year to US$57mln. Ahead of today's results some 47% of Gamestop's shares were on-loan according to financial data provider Markit making it the 'most shorted'. The New York Stock Exchange listed stock was down US$3.40 8.6% trading at US$25.86 this afternoon. Monday's results also follow analyst downgrades last week which had already sent the shares lower. 'Persevering short sellers were rewarded last week with a 13% sell off after an analyst downgrade sent Gamestop shares diving' Markit said in a note. 'Last week has also seen the cost to borrow stock increase by 37% indicating that bearish sentiment remains strong ahead of earnings due out on Monday.' If Gamestop shorters were winning the shoe was firmly on the other foot when it comes to Weight Watchers (NYSE:WTW) which has seen a 'squeeze' after the share rallied strongly on the back of news last month that Oprah Winfrey had investing big in the dieting company. The squeeze will now be hurting Markit says as it highlighted that 100% of them are now out-of-the-money. The Markit report also pointed to restaurant group Cracker Barrel Old Country Store (NASDAQ:CBRL) and Enanta Pharmaceuticals (NASDAQ:ENTA) as other among the 'most shorted' top five with both seeing about 21% of their stock on loan.
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