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Home / fronttechnology / Stock Market Reaction After GameStop And AMC Surges, Robinhood Restricting Trades

Stock Market Reaction After GameStop And AMC Surges, Robinhood Restricting Trades


Considering the interest and impact from “retail investors”—everyday people trading on the stock market—this may be the craziest week in the history of Wall Street. It started with users on the discussion platform Reddit and its WallStreetBets subreddit, which spearheaded a short squeeze of GameStop stock ($GME), forcing $GME to rise from under $20/share from earlier this month up to as high as over $400/share at the time of this publication. In the process, the short squeeze has caused hedge funds to lose billions of dollars very quickly.

 

GameStop seems to be the golden goose for these retail investors, but AMC stock ($AMC) has been the main secondary target, going from under $5/share on Tuesday to over $20/share on Wednesday. However, brokerage firms—beginning with Robinhood—restricted trading on a few controversial stocks including $GME and $AMC, causing the stock prices to drop in what most agree is clear market manipulation to help billionaire hedge funds trying to cover their shorts.

 

From Mark Cuban to Donald Trump Jr. to Alexandria Ocasio-Cortez to Ted Cruz to Dave Portnoy, mostly everyone is in agreement the actions by Robinhood and others were unfair—when you have AOC and Ted Cruz agreeing strongly on something, you know it had to be messed up. Here’s some of the top reaction from an historic stretch on the stock market:

 

 

 

 

 

 

 

 

Last night, Portnoy summed the situation up nicely on FOX News’ Tucker Carlson Tonight.

 

 

Basically, trading of stocks such as GameStop and AMC was stopped for the retail investor—they could only sell, which obviously means the price will go down—costing everyday people money.

 

https://twitter.com/cptMajid27/status/1355170316335665163?s=20

 

Everyone that invests in the stock market should know the risks, and it’s probably not wise to invest money you cannot afford to lose. But this situation is pretty extraordinary—changing the rules in middle of the game to favor billionaires is what has people rightfully angry. It’s difficult to tell people they should be responsible for their actions and investments (and thus, their losses) when one side is tipping the scales so that it really isn’t a free market.

 

There have already been multiple class action lawsuits filed against Robinhood.

4 Comments

  • guest

    The elitists halted all the momentum GME and AMC had. It’s TOTAL AND COMPLETE BS. Gamestop might be at 800-1000 and AMC 250-500 if it wasn’t for them changing the rules. Meanwhile the elite won’t give stimulus checks and there are no good jobs available they tell us to “build solar panels”

  • Shadetree42

    lol. It was a simple pump and dump, and brokers have to post up funds due to settlement rules — hence, the trade halting.

    Cuban was egging all these people on to lost their shirts….disgraceful all around.

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