Days after angry users slapped it with lawsuits amid the GameStop trading chaos, Robinhood has debuted its first Super Bowl ad. The upbeat, 30-second spot focuses on the idea that everyone is an investor. According to CNBC, the ad will kick off the stock trading app's biggest brand campaign to date, but it comes at a time when Robinhood is in crisis mode. The company restricted trading on a number of stocks with high volatility last week, including GameStop, AMC and BlackBerry. Day traders from the WallStreetBets subreddit fueled the rise of those stocks.
Conservative commentator Candace Owens took aim this week at the stock trading app Robinhood after it blocked amateur traders from buying shares in companies like GameStop amid chaos on Wall Street. Robinhood has faced intense bipartisan backlash over its actions to halt trading of various companies whose stock prices surged dramatically after a group of Reddit users bought up shares. Robinhood was accused by some critics of market manipulation, while others have called for the tech company to be investigated. JON STEWART JOINS TWITTER, CALLS ROBINHOOD BLOCKING GAMESTOP STOCK PURCHASES'BULLS---' Owens compared Robinhood's actions to the disabling of the conservative-favored social media app Parler by tech giants Amazon, Apple and Google.. "The #RobinHood scandal reminds me of when millions of Americans organized to flee Facebook & Twitter for Parler--and then a bunch of crooks (Google & Apple) shut it down by pretending that the competition was illegal," Owens tweeted Thursday. "Wall Street & Big Tech are criminal, colluding enterprises," she added.
Amid complaints from customers, at least one lawsuit and growing criticism from lawmakers in both major parties, Robinhood announced that on Friday, it plans to once again allow "limited buys" of 13 securities it had restricted on Thursday. That clampdown came after a subreddit-inspired short squeeze sent stock prices soaring for companies like GameStop, Nokia, AMC and Koss, and almost immediately rumors focused on why that happened, or who decided to put a lid on trading. On this week's episode of The Engadget Podcast, Devindra and Cherlynn spoke to Mike Futter and a member of the r/WallStreetBets subreddit to discuss exactly what is going on. Despite denials of any arrangement with big money Wall Street backers, there's still widespread belief that the inability to purchase these specific companies has been coordinated to disadvantage retail stock traders. Meanwhile, some explanations dug into what happened with the Wallstreetbets subreddit, and the business model of a company like Robinhood, pointing out that their moves caused marketmakers and hedge funds to also participate and potentially profit from the frenzy.
Facebook has taken down the popular Wall Street discussion group, Robinhood Stock Traders, in a move that its founder described as backlash for conversations buoying shares of GameStop Corp and other companies this week. GameStop, AMC Entertainment Holdings Inc and BlackBerry have been at the centre of a market battle as individual investors coordinating on social media including Reddit, and using trading apps such as Robinhood, bought shares and squeezed hedge funds that had bet that those struggling companies would tank. Allen Tran, a 23-year-old from Chicago who created Robinhood Stock Traders, said he woke up on Wednesday to a notification that Facebook had disabled the 157,000-member group. The notification, seen by Reuters, said without detail that the group violated policies on "adult sexual exploitation". "We were first on the picking tree to be cut off because we are on Facebook, not a free platform like Reddit," said Tran, referring to the typically lighter moderation on the discussion website.
A year ago shares in struggling US video game store GameStop were worth just $3.25 a pop, yet at the end of last month they had reached $482. This stupendous surge was created by thousands of armchair traders, organising themselves on internet forums such as Reddit, who were attempting to outwit hedge funds who had placed massive bets on the chain's decline in a process known as short-selling. This has resulted in billion-dollar losses for some hedge funds, and big profits for traders who cashed out before the stock fell back to less than $100. Many of these speculators were using a new generation of share-trading apps, such as eToro, Robinhood and Trading 212. Have these services tipped the scales of financial power in favour of the little guy?