Ironically, though, many Robinhood users felt it was the app that left them behind last week.
If you missed the drama, Robinhood last Thursday decided to block users from buying shares of GameStop, as well as a handful of other companies, after its share price skyrocketed from below $40 to north of $340 within a matter of days. (Robinhood would only allow GameStop shareholders to sell their shares, which obviously puts downward pressure on a stock.) GameStop’s surge was spurred on in large part by Wall Street Bets, a popular Reddit forum, where users had rallied behind the gaming retailer for a number of reasons, including the stock being heavily shorted, or bet against, by hedge funds. But GameStop’s meteoric rise came to a screeching halt following Robinhood’s decision, with the company’s stock price plummeting to about $70 per share by early trading on Thursday.
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AMC Entertainment’s Stock Jumps 60% as Wild Wall Street Run Continues
The surge comes after Robinhood reinstated “limited” trading of popular “Reddit stocks,” including AMCSean Burch | January 29, 2021 @ 9:05 AM Last Updated: January 29, 2021 @ 9:08 AM
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AMC Entertainment bounced back on Friday morning, with the nation’s largest cinema chain seeing its stock price rocket 60% higher to $13.91 per share. The huge jump comes after Robinhood, the popular stock trading app, retreated from its decision to block users from trading AMC’s stock a move that had sent the company’s share price plunging a day earlier.
At its peak on Thursday morning, AMC touched $16 per share before settling into the $14 range about two hours into trading.