Gamestop stock news: Robinhood boss defends trading halt as investors set to get access back
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Video game retailer GameStop’s stock price has been on a rollercoaster this week due to the actions of users on the WallStreetBets subreddit and the subsequent blocking of their ability to buy stock by several online brokerages.
The Reddit users pushed the stock up from $20 on 11 January to a high of $146.97. At its peak on Thursday morning, the stock was valued at 468.49. Other stocks with a similar profile to GameStop - firms that have struggled in the pandemic - have also soared in value including Bed, Bath & Beyond, AMC, and Nokia.
The decision by online brokerage Robinhood and others to stop the purchase of a number of stocks by amateur investors led to a sharp backlash online and a demand for an investigation by both market commentators and lawmakers.
After the morning surge in value in pre-market trading, stock in GameStop dropped sharply as markets opened on Thursday, before climbing again. By lunchtime it was down 32 per cent, eventually closing down 44 per cent wiping out almost $11bn in market value.
However, Robinhood announced it will allow limited purchasing of the restricted stocks on Friday causing a bump in the value of shares after the closing bell.
Was this Wall Street’s equivalent of a populist uprising as some are saying or were other forces at work? Elizabeth Warren questioned the David vs Goliath narrative in her calls for more regulation and a sharper toothed SEC.
Both the House and the Senate will now hold hearings into what transpired.
Follow all the latest in our rolling coverage.
- GameStop shares surge 40% before dropping sharply as Reddit-fuelled rollercoaster continues
- GameStop: Reddit users claim victory as $13bn hedge fund closes position, accepting huge losses
- ‘You stand for everything I hate’: Reddit WallStreetBets posts open letter to Wall Street Hedge Funds
- How the internet is reacting to GameStop, Reddit and Wall Street debacle
- GameStop: How a fight between Reddit users and Wall Street saw video game company’s stock increase tenfold
‘You stand for everything I hate’
An open letter published to the controversial Reddit forum WallStreetBets has attempted to explain the recent phenomenon that has seen previously stagnant stock sky rocket in price in recent days.
The letter, which has received more than 60,000 upvotes, lays out the reasons why an army of retail investors attempted to bankrupt Melvin Capital and other hedge funds by piling their money into shares of the beleaguered video game seller GameStop.
The resentment for Wall Street investment firms, especially those that were betting billions of dollars on the decline of struggling businesses, stems from the Financial Crisis of 2007 and 2008.
Anthony Cuthbertson reports for The Independent.
Reddit WallStreetBets posts warning letter to Wall Street hedge funds
Forum with more than 4 million users has helped push up GameStop share price by 1,600 per cent in 2021
The internet delivers
Some choice reactions to the Wall Street/ Reddit debacle.
How the internet is reacting to the GameStop, Reddit and Wall Street debacle
Barely a month into 2021 and it is already proving to be a very bizarre year in more ways than one, but perhaps the strangest story that we’ve seen in a long time involves Reddit users squaring off against Wall Street tycoons.
Democrats slam Wall Street for criticising amateur investors
Both Elizabeth Warren and Alexandria Ocasio-Cortez point out that hedge funds treat Wall Street like their personal casino so to complain about others doing the same is “really something”.
Warren and AOC slam investors for criticising GameStop buy-up while treating stock market like ‘personal casino’
Reddit investors behind 700 per cent surge in company’s value in past two weeks
A rare and unexpected moment of bipartisanship
Who had AOC and Don Jr agreeing about something on their 2021 Bingo card?
Lots of anger online at Robinhood
Here’s more from Dave Portnoy of Barstool Sports:
GameStop falls
With brokerage platforms shutting out amateur traders, GameStop’s stock price is falling
Robinhood getting most flak online
Other brokerage platforms have made similar moves including Interactive Brokers and Charles Scwabb.
Voices: Should you believe Reddit, Jordan Belfort or your parents about the GameStop Robinhood controversy?
Depending on your perspective, this was either Wall Street’s comeuppance or the inmates taking over the asylum. I’m one of the people caught in the middle, writes Ed Weinberg.
Should you believe Reddit, Jordan Belfort or your parents about the GameStop Robinhood controversy?
Depending on your perspective, this was either Wall Street’s comeuppance or the inmates taking over the asylum. I’m one of the people caught in the middle
Winklevoss twins join the chorus of criticism
Cameron and Tyler Winklevoss, now cryptocurrency and Bitcoin investors, once part of the story of the early days of Facebook, took to Twitter and a confrontational appearance on CNBC, to share their feelings regarding this week’s establishment versus amateur trading debacle.
Nancy Pelosi: ‘Interesting isn’t it’
House Speaker Nancy Pelosi was asked about the GameStop trade at a press conference this morning.
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