Tech & Gadgets

Amidst Stock Surge, Robinhood Blocks New Purchases Of GameStop Stock

The GameStop Corp. saga has become nothing short of a national phenomenon, hitting the doorsteps of both the administration of new President Joe Biden and Federal Reserve Chairman Jerome Powell. Each was on the receiving end of difficult questions about their take on a company that sells five used video games for $10.

The skyward march at GameStop Corp. accelerated Tuesday, almost doubling its stock during exchange hours and then soaring another 50 percent after Elon Musk’s name was reviewed in a tweet. Via a year-to-date rally that is pushing 700 percent, its market cap flew past the $10 billion marks.

Thanks to the benefit, more than 10 percent of S&P 500 stocks, including American Airlines Group Inc., Under Armour Inc., and Invesco Ltd., are now worth GameStop. It began the year with a $1.2 billion market capitalization. U.S. business shares listed on German Exchange Tradegate received 106 percent to $306 in early trading on Wednesday compared to the U.S. closing price of $147.98 on Tuesday.

Robinhood, the online trading app, is stopping users, including GameStop Corp., from making new purchases of many stocks. GME, -43.58 percent, which has risen in value in recent weeks, the company said in a blog post-Thursday, even as professional investors continue to hold significant short positions in such securities.

“We continuously monitor the markets and make changes where necessary,” the statement reads. “In light of recent volatility, we are restricting transactions for certain securities to the position closing only.”

The new strategy affects BlackBerry Ltd.’s shares, in addition to GameStop. AMC Entertainment Holdings Inc. BB, -40.56 percent, AMC, -53.82%, Bed Bath & Beyond Inc. BBBY, -35.49%, Express Inc. Koss Corp. EXPR, -55.50 percent KOSS, Naked Brand Group Ltd. -19.78 percent. NAKD, +39.05 percent, and Nokia Corp. American Depository Receipts. -26.56 percent NOK.

According to FactSet, shares in these companies rose between 26% and 3,087% during January, with the action seeming to be catalyzed by social media campaigns aimed at raising their prices and hurting skilled investors who sold them short.

Source: Marketwatch

Adib Mohd

Recent Posts

Toshiba Turns 95 with a Giant Fridge, Big Vibes & A Spot in the Malaysia Book of Records

Who says anniversaries are just cake and candles? For Toshiba’s 95th Anniversary Dealer Convention, it… Read More

5 hours ago

Resorts World Sentosa’s Singapore Oceanarium Introduces New Experiences As Ticket Sales Go Live

Resorts World Sentosa (RWS, 圣淘沙名胜世界) has announced that ticket sales have launched for Singapore Oceanarium… Read More

5 hours ago

Barista Brews at Prices You Won’t Believe Exist

Think handcrafted coffee always comes with a hefty price tag? Think again. Across Malaysia, cafés… Read More

5 hours ago

POCO Introduces POCO F7: Where Futuristic Design Meets Exceptional Power

POCO, a leading technology brand among young tech enthusiasts, today unveiled POCO F7, setting a… Read More

5 hours ago

Proton Owners Hit the Road for Wellness: AG Autoworld x Herbal Farmer Flag Off First-Ever Fun Drive in Johor

What do you get when you mix wellness, good vibes, and 30 Proton cars? A… Read More

5 hours ago

OMSMC Earns Spot in Newsweek’s Global Hospital Rating 2025

Oriental Melaka Straits Medical Centre (OMSMC) has been listed in Newsweek’s Global Hospital Rating 2025,… Read More

10 hours ago

This website uses cookies.