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GameStop, AMC Jump as Robinhood Set to Allow Limited Buying on Friday

Stock MarketsJan 28, 2021 04:33PM ET
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© Reuters

By Yasin Ebrahim

Investing.com – GameStop, AMC, Nokia (NYSE:NOK) and a slew of other so-called meme stocks backed by retail investors jumped in after-hours trade Thursday, after online trading platform Robinhood said it would lift some trading restrictions on the stocks.

GameStop (NYSE:GME) rose 31% to $259 in after-hours trade after closing down 43%. AMC Entertainment (NYSE:AMC) rose 21% to $10.56 after falling 56% on the day. Nokia ended the day down 13.25%, Naked Brand Group Ltd (NASDAQ:NAKD) rose 6% in after-hours trade, while Express (NYSE:EXPR) was up 11% and Blackberry (TSX:BB) climbed 8%.

“Starting tomorrow, we plan to allow limited buys of these securities. We’ll continue to monitor the situation and may make adjustments as needed,” Robinhood said in a statement.

The battle between the short-sellers and the Redditors has intensified in recent days and captivated attention worldwide. But it's not just the "little guy" or retail investor that has been riding the wave of momentum.

GameStop disclosed in a filing with regulators on Thursday that MUST Asset Management, a large shareholder in the company, has sold its entire stake in the company.

The move comes just a day ahead of what will be another wild session of trading. Short options - bets against the price of a stock - are widely expected to expire, forcing another squeeze on the short-sellers that could see them potentially lose billions of dollars.

Earlier in the day, Robinhood and other online brokerages restricted trading in the cohort of "meme stocks," and hiked margins requirements, citing increased volatility.

The move drew ire from retail investors, who filed at least two federal suits demanding it reinstate trading of shares including GameStop, BlackBerry (NYSE:BB) Ltd., Nokia Oyj (HE:NOKIA) and AMC Entertainment Holdings Inc, Bloomberg reported.

Lawmakers on both sides of the political aisle have also chimed in on action, questioning why brokerages had imposed trading restrictions.

Texas Republican Senator Ted Cruz also backed calls for a probe into Robinhood's decision to block retail investors.

As it stands, the Redditors have already drawn proverbial blood against Melvin Capital, with the latter reportedly closing out its short position on GameStop for huge losses earlier this week.

The stage has been set for another wild day of trading on Friday. The Redditors appear determined to "hold the line," a mantra littered throughout Reddit forum "wallstreetbets," seemingly symbolizing a battle cry to fellow holders to avoid selling their positions and caving into pressure.

For all the hoopla surrounding the short-squeeze, there is however the risk that the "little guy" could end up losing a lot more than the wealthier and experienced purveyors of Wall Street.

GameStop, AMC Jump as Robinhood Set to Allow Limited Buying on Friday
 

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Comments (81)
Jorge Garcia
Jorge Garcia Jan 29, 2021 9:47PM ET
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Boycott Robinhood put them out of business.
Fabrice Lange
Fabrice Lange Jan 29, 2021 3:12AM ET
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only bad traders are afraid of this situation. In democracy a new player is always a good thing, isn'it ?
Art Fire
Art Fire Jan 29, 2021 1:29AM ET
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Wallstreet get played and beat in their own game, in their own system, fairly. History should at least recognize their failure (and fire those involved)
Chris Sundo
Chris Sundo Jan 29, 2021 1:22AM ET
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This IS SUCH AN EXCITING TIME FOLKS. -- Marketwatch issued a list of over-short floated % stocks :) I've added to my SKT pos today. -- Love this Black Swan event these days ;)
Dee Engee
Dee Engee Jan 29, 2021 12:48AM ET
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"Limited" just means you can buy until they're losing, then they cut you off "for your own good". Have another trading platform ready if you haven't moved already. Robinhood has shown their true colors, they can't be trusted.
Gregory Me
Gregory Me Jan 29, 2021 12:44AM ET
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I love GME
Gregory Me
Gregory Me Jan 29, 2021 12:43AM ET
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No matter what, we must stick together and after our buy and hold strategy with GME...only AFTER...we must target Robinhood and put them out of business.
David Adinayev
David Adinayev Jan 28, 2021 11:45PM ET
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we like GME
John Truglio
John Truglio Jan 28, 2021 11:42PM ET
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Bought $200 of KOSS at the gym tuesdsy afternoon because it was on an old watchlist and up 100% at $10. Wasn’t any news yet. 15 minutes later news hits and ended up selling it for $550 the next day. Should have held it longer. I bought 25000 shares of DOGE when Musk tweeted he was CEO in december. Already took $400 from that tonight. Robinhood made me wait an hour to close it. I’m just a teacher with a normal portfolio. Didn’t expect this.
Chris Sundo
Chris Sundo Jan 28, 2021 11:42PM ET
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Whoaa .. we need 2b careful not to loose the fresh gains soon later. Take a break soon!! Stay hydrated and BREATHE .. Good 4blood pressure
William Smith
William Smith Jan 28, 2021 11:29PM ET
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Yellen in bed Citadel. Corruption at the highest level imo.
masterstroke oo
masterstroke oo Jan 28, 2021 11:29PM ET
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I am neither here nor there but all this is affecting legitimate traders as well
Scott Jones
Scott Jones Jan 28, 2021 10:22PM ET
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webull charts are 100x better than RH btw
dc Gpswill
dc Gpswill Jan 28, 2021 9:24PM ET
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welcome to United states of China
William Smith
William Smith Jan 28, 2021 9:24PM ET
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The Democrats utopia.
vaibhav sharma
vaibhav sharma Jan 28, 2021 8:54PM ET
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it is unacceptable to me that Yasin Ebrahim is calling these stocks as meme stocks and delegitimizing the value seen by retail investors in these stocks. there is a difference in opinion. that doesn't mean you have to succumb to name calling.
Tommi Nuutinen
Tommi Nuutinen Jan 28, 2021 8:54PM ET
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yeah, would like to hear Yasins means for example say that NOKIA is a "meme stock".
dj Echo
dj Echo Jan 28, 2021 8:29PM ET
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That's why I don't use it, platform *******and there were so many people complaining of RH malfunctioning even before this incident. This is was not some glitch, it was a collusion with citadel to drive the price of a certain stock down as citadel is heavily vested in sending the price lower. RH gets 40 percent of its funds from citadel
Rus Wang
Rus Wang Jan 28, 2021 8:02PM ET
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They call themselves Rob the Hood for a reason..
Iam Suleman
YesomiteSam Jan 28, 2021 8:02PM ET
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They also have a nick name, Robin Hoodlum
Jose Munoz
Jose Munoz Jan 28, 2021 7:58PM ET
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I hope they sue them follow millions. Today was an institutional attack on the private individual.
Ilan Brant
Ilan Brant Jan 28, 2021 7:55PM ET
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Friday *****friday. Ya’ll hold the lines!
Art Fire
Art Fire Jan 28, 2021 7:55PM ET
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Is there any point the shorters shored upa
Oliver Closeoff
Oliver Closeoff Jan 28, 2021 7:26PM ET
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The manipulators have been manipulated!!! eff robinhood crooks.... They cry like babies now that the tables have turned
Greg Pomering
Greg Pomering Jan 28, 2021 6:53PM ET
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everyone should leave robinhood!! Crooks!!
Scott Jones
Scott Jones Jan 28, 2021 6:53PM ET
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come to webull, lot better platform anyway
Greg Pomering
Greg Pomering Jan 28, 2021 6:49PM ET
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what gives them the right to shut down traders!!
Ronald Warren
Ronald Warren Jan 28, 2021 6:49PM ET
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Robin hood didn't have enough reserves to cover the action. SEC regulations.
Rosyam Syam
Rosyam Syam Jan 28, 2021 6:49PM ET
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Ronald Warren  can you smell that?
Jorge Garcia
Jorge Garcia Jan 28, 2021 6:49PM ET
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Then halt trading. Why only close half the trade? They throttled BB in real time to make sure it couldn't pass 15. Criminal!
fishattackshark fishy
fishattackshark fishy Jan 28, 2021 6:47PM ET
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Better start our plattform
fishattackshark fishy
fishattackshark fishy Jan 28, 2021 6:44PM ET
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Limited? *****up world
Billy Bilnaad
Billy Bilnaad Jan 28, 2021 6:36PM ET
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Robinhood frauds! They’d better allow trading without any restrictions tomorrow
Neta Goldberg
Neta Goldberg Jan 28, 2021 6:34PM ET
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Robinhood and other trading apps restricted Millions of investors from buying certain stocks because their BILLIONAIRE Hedge Fund buddies are crying!!! However, there is no restrictions for hedge funds to short a billion shares to drive down price and cover their short positions today. Hedge funds are allowed to gang up snd short 140% of a company’s stock, but common people are not allowed to buy, while the SEC is sleeping (hopefully not with billionaires!) and allowing all these to happen. Can this disparity look any worse in terms of public relations for the trading apps, the government and elected officials?$AAL, $AMC, $BB, $BBBY, $CTRM, $EXPR, $GME, $KOSS, $NAKD, $NOK, $SNDL, $TR, and $TRVG
 
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