GameStop news: Robinhood CEO to testify before Congress as GME stocks fell 30 per cent to close at $225

Follow the latest updates

Robinhood boss defends GameStop trading restrictions

The Reddit army that last week launched into an extraordinary trading war with Wall Street hedge funds over shares in failing video game retailer GameStop has switched its focus to silver, sending the price of stock in precious metal producers like First Majestic Silver and Fresnillo soaring by 35 per cent and 18 per cent respectively on Monday.

Reddit-propelled buying drove the price of the commodity up by as much as seven per cent to $29.70 an ounce at the start of the new week, its highest value since March 2013 as amateur investors looked to further exert their influence over the markets.

Vlad Tenev, under-fire CEO of trading app Robinhood, has meanwhile accused Elon Musk of “getting into conspiracy theories” after the tech entrepreneur suggested during a livestream interview that established funds and US financial regulators had conspired to rein-in purchases of GameStop shares on Tenev’s platform.

• How and why GameStop shook the stock market
• ‘It will, I fear, be the small investors who are most badly burnt’
• Will the pursuit of silver tarnish the Reddit army’s crusade?
• Why are traders bringing a class action suit against Robinhood?

Key Points

• GameStop closes 30 per cent down
• White House supports Congress on legislative reforms in wake of GameStop frenzy
• Robinhood raises additional $2.4bn to ride out GameStop frenzy
• Hedge fund Melvin Capital loses $7bn over ‘meme stock’ saga
• GameStop: The Movie already in development
• Senator calls Wall Street ‘rigged game’ and demands investigation

[1 February 2021 23:50 · Justin Vallejo]

Larry Kudlow against Covid checks that would be spent on GameStop

Donald Trump’s former economic adviser hit the airwaves on Monday to oppose Covid stimulus checks that could be spent on the GameStonk frenzy.

“I’m OK with strictly targeted funding, particularly for health vaccinations and school openings,” he said on Fox news.

“I’m not OK with spending stimulus checks, sending out and spending stimulus checks on one penny or two penny stocks, which is what’s been happening with this incredible story of GameStop and some of these penny stocks. That’s so silly.”

“Giving out stimulus checks so people can buy penny stocks, not fine,” he added.