🍎 🍕 Less apples, more pizza 🤔 Have you seen Buffett’s portfolio recently?Explore for Free

GameStop Up 400% for Week as Traders 'Hold the Line' Despite Robinhood Cap

Published 2021-01-29, 04:39 p/m
© Reuters
BBBYQ
-
SBUX
-
NFLX
-
GME
-
EXPRQ
-
BB
-
AMC
-
CENN
-
MRNA
-
BYND
-

By Yasin Ebrahim

Investing.com – GameStop rallied four-fold in just five trading days as the Redditors put the squeeze on the short sellers on Friday despite trading platforms including Robinhood imposing limits on trading for the second day in a row.  

GameStop (NYSE:GME) rallied 68% on Friday, racking up a 400% gain for the week. Baring a surge to $413.98 and dip to $250 intraday, the trading action in GameStop was confined to within the $300 price level, though the restrictions imposed on the traders most likely played a role. 

AMC Entertainment (NYSE:AMC) rose 54% on the day, Naked Brand Group Ltd (NASDAQ:NAKD) rose 19%, while Express (NYSE:EXPR) was up 28% and Blackberry (TSX:BB) climbed 6%.

Robinhood was at the center of attention after the trading platform limited traders to buying just a single share of GameStop, MC, Koss and Moderna (NASDAQ:MRNA). The popular trading platform went a step further, expanding restrictions on a list of stocks to 50 to include Starbucks (NASDAQ:SBUX) and Beyond Meat (NASDAQ:BYND). Traders were also limited to just two purchases of stock in Bed Bath & Beyond Inc (NASDAQ:BBBY)and Qualtric.           

The battle between the retail traders versus the Wall Street short-sellers continued to captivate and divide opinion on Wall Street. 

"There is no reality to [these] trades ... they not based on anything other than speculation," said William Galvin, Massachusetts Secretary of State. "The issue of shorting has to be addressed by the national regulator." 

Kevin O’Leary, chairman of O’Shares ETFs and co-host of "Shark Tank," disagrees. "The best thing we could do for this market is leave it alone," O’Leary said on CNBC. He argued that no one was considering whether GameStop executives would take advantage of recent appreciate in their stock price to raise capital, build a brand and pivot "just like Netflix (NASDAQ:NFLX) did when they were shipping out CDs in the mail."  

 

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.