GameStop shares have soared up to $492 from less than $20weeks ago as Reddit users appreciated by Elon Musk started buying the stocks and holding them. The US video game retail chainended the formal trading day down some 44 percent as some cashed out. But the stock price lifted back after Tesla chief Elon Musk seemingly urged individual investors to punish hedge funds for short selling. He tweeted, "Here come the shorty apologists. Give them no respect. Get Shorty."
Also, aReddit group, or "subreddit" called WallStreetBets that has some 4.7 million members, has been an online rallying spot for those urging people to buy and hold GameStop shares, punishing short-sellers by sending prices soaring.Robinhood, the trading app known for allowing individuals to invest in the market without paying trading commissions, blocked users from purchasing GameStop, AMC, and others on Thursday after the stocks skyrocketed in value. A Class-action lawsuit has also been filed against Robinhood following outrage over GameStop stock restriction.
"The past year, in particular, has shown us that the financial markets are for everyone-not just institutional investors and hedge funds. We've seen a new generation enter the market, and they're sparking conversations about what it means to be an investor. We stand in support of you, our customers," Robinhood said in an email to users.
Robinhood's decision was also criticized by famous billionaire Mark Cuban, lawmaker Alexandria Ocasio-Cortez, and BartstoolSports founder Dave Portnoy. "This is unacceptable. We now need to know more about @RobinhoodApp 's decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit," Rep. Alexandria Ocasio-Cortez said in a tweet.