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

Published 01/28/2021, 04:32 PM
Updated 01/28/2021, 04:33 PM
© Reuters

© 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.

Latest comments

only bad traders are afraid of this situation. In democracy a new player is always a good thing, isn'it ?
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)
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 ;)
"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.
I love GME
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.
we like GME
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.
Whoaa .. we need 2b careful not to loose the fresh gains soon later. Take a break soon!! Stay hydrated and BREATHE .. Good 4blood pressure
I am neither here nor there but all this is affecting legitimate traders as well
webull charts are 100x better than RH btw
welcome to United states of China
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.
yeah, would like to hear Yasins means for example say that NOKIA is a "meme stock".
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
They call themselves Rob the Hood for a reason..
They also have a nick name, Robin Hoodlum
I hope they sue them follow millions. Today was an institutional attack on the private individual.
Friday *****friday. Ya’ll hold the lines!
Is there any point the shorters shored upa
The manipulators have been manipulated!!! eff robinhood crooks.... They cry like babies now that the tables have turned
everyone should leave robinhood!! Crooks!!
come to webull, lot better platform anyway
what gives them the right to shut down traders!!
Robin hood didn't have enough reserves to cover the action. SEC regulations.
 can you smell that?
Better start our plattform
Limited? *****up world
Robinhood frauds! They’d better allow trading without any restrictions tomorrow
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
Going to jail Vlad?
just bought 10 sh GME on TD Ameritrade. Set limit order to sell at $1000 per share.
maybe he bought AH?
A limit order can be executed in extended hours
Id set it higher. Some people reported having shares sold for them if their limit order isnt insanely high. Set mine at $9500 lol
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