News Article
UPDATE: Mark Cuban, Dave Portnoy, AOC and others react to Robinhood restricting trades on GameStop and AMC
12:42pm ET 1/28/2021 MarketWatch
Mentioned in article
AMCGME
By Weston Blasi
Trading platforms like Robinhood, TD Ameritrade and Interactive Brokers have halted purchases on such stocks
The meteoric rise of stocks discussed on Reddit's WallStreetBets forum (
https://www.marketwatch.com/story/te...?mod=home-page) -- like GameStop (GME) and AMC (AMC) -- has caused major disruptions in the stock market.
Stock trading companies like Robinhood (
https://www.marketwatch.com/story/ro...bnbh_mwarticle), TD Ameritrade and Interactive Brokers (
https://www.marketwatch.com/story/ga...de-11611769804) have halted purchases on such stocks.
The moves to restrict trading have led to complaints about the lack of free trade going on in the markets. Among those criticizing the move is billionaire Mark Cuban.
(
https://twitter.com/mcuban/status/1354798465994338304)
Barstool Sports's Dave Portnoy, a notoriously active day trader, is also criticizing Robinhood for its lack of "free trading." Barstool Sports is owned by Penn National Gaming (PENN).
(
https://twitter.com/stoolpresidente/...86492669956097)
And some politicians of both parties have gone after Robinhood's decision to restrict trading on stocks like GameStop and AMC -- including Rep. Alexandria Ocasio-Cortez and Sen. Ted Cruz.
(
https://twitter.com/AOC/status/1354830697459032066)
(
https://twitter.com/tedcruz/status/1354810452383948813)
Robinhood recently created a post (
https://blog.robinhood.com/news/2021...ket-volatility) addressing the situation.
"Our mission at Robinhood is to democratize finance for all. We're proud to have created a platform that has helped everyday people, from all backgrounds, shape their financial futures and invest for the long term."
Some people on Twitter are pointing out the irony of the post by resurfacing a tweet from Robinhood in 2016 alluding to the concept of free trade.
(
https://twitter.com/RobinhoodApp/sta...08069369782272)
GameStop shares are down 34% and AMC is down 58% percent during early afternoon Monday trading. GameStop's stock soared 2,876.5% (
https://www.marketwatch.com/story/la...bnbh_mwarticle) over the past three months, while the S&P 500 gained 16.1%.
-Weston Blasi; 415-439-6400;
AskNewswires@dowjones.com
(END) Dow Jones Newswires
January 28, 2021 12:42 ET (17:42 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
Originally Posted by Dow Jones Newswires
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