- Robinhood and different brokerages restricted GameStop ($GME) buying and selling on Thursday, stopping retail patrons from shopping for extra shares.
- A wave of criticism adopted from politicians and celebrities questioning the firm’s practices. Lawsuits had been additionally filed towards Robinhood.
- The commission-free buying and selling app wasn’t the solely brokerage to have restricted buying and selling on extremely risky “meme stocks” like GME and several other others which are standard with a Reddit buying and selling group. But most of these retail merchants use Robinhood for buying and selling.
- As a consequence, many Android customers have review-bombed Robinhood on the Google Play store, the place the app has a mean rating of 1 star at the time of this writing.
The GameStop brief squeeze saga continued on Thursday with an sudden improvement in the Reddit vs. Wall Street battle. The inventory opened at $265, went as excessive as $483, after which descended all the approach right down to $112.25. That’s primarily a repeat of the battle for management over GME inventory we’ve witnessed all week lengthy. But as the GameStop buying and selling gathered extra steam and nationwide consideration this week, costs rose greater than ever, with numerous retail traders becoming a member of the ranks of the WallStreetBets subreddit, fueling the meteoric rise towards the closely shorted GME inventory.
Armed with data and a cell app, hundreds of individuals have been shopping for GME shares, with many aiming to harm massive Wall Street funding funds in the course of. But Thursday additionally introduced a new improvement to the GameStop battle. Several brokerages restricted buying and selling of GME and different so-called “meme stocks” that Reddit customers had been pushing. Among them was Robinhood, the commission-free app that’s standard with retail traders seeking to commerce shares from their telephones. And the app is now a 1-star app in the Google Play store, as customers weren’t pleased to search out out they had been shut out from shopping for GME and several other different shares.
Robinhood confirmed in a weblog publish that it could prohibit transactions for varied firms, “including $AMC, $BB, $BBBY, $EXPR, $GME, $KOSS, $NAKD and $NOK,” citing “recent volatility.” But Robinhood solely prohibited shopping for, not promoting. Many accused the firm of manipulating the market, with some calling for investigations:
Fully agree. ???? https://t.co/rW38zfLYGh
— Ted Cruz (@tedcruz) January 28, 2021
The resolution drew the instant consideration of politicians, together with Alexandria Ocasio-Cortez and Ted Cruz, who agreed that Congress ought to take motion towards Robinhood. Others had been fast to file fits towards Robinhood.
— Elon Musk (@elonmusk) January 28, 2021
Robinhood isn’t the solely brokerage that restricted buying and selling, with Charles Schwab and TD Ameritrade pulling the similar transfer. However, it so occurs that Robinhood is the buying and selling app of alternative for most individuals in the WallStreetBets Reddit group, with many Redditors using it.
Unsurprisingly, many individuals went on to Google Play for revenge, giving Robinhood 1-star rankings. This apply isn’t unusual, as different apps have attracted related consideration. As Android Police explains, Google normally fixes evaluation bombs like the one presently impacting Robinhood. But at the time of this writing, greater than 321,000 Android customers have reviewed the app, with the common rating sitting at 1-star. Robinhood continues to be protected in the App Store, the place it has a mean rating of 4.8 stars from greater than 2.4 million rankings.