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The world of individual investing has become the hottest topic in the nation and around the world this week after a group of Reddit users essentially toppled the market on their own. With hedge funds losing big and brokerage firms blocking access to hot stocks, Twitter users are pushing back against the will of Wall Street by demanding a truly free market.
As we shared in a report on Wednesday (Jan. 27), the rapid rise of GameStop stock came as a bit of a surprise for investors on the outside as Reddit groups such as WallStreetBets and other similar spaces around the web made the stock rally to levels unseen. What makes the jump more remarkable is that the video game retailer has been struggling over the past two years with many seeing the company as dead in the water.
Given the virtual gold rush that spread throughout not only to the stocks of GameStop but also the equally-lagging AMC Theaters chain, telecommunications company Nokia is another stock suddenly on the rise due to chatter within the insular communities where individual investors discuss their wins and losses.
Attempting to explain in detail the way all of this works isn’t completely our wheelhouse and as evidenced by outlets such as ours scrambling to get the story right, the details are developing so rapidly that it’s hard to capture what all this means in layman’s terms.
Some information could be gleaned by several trending topics on Twitter now such as Robinhood, Cashapp, and Webull, traditional spaces where investors with a little play money they don’t mind losing could hop in and out of the rise in markets. It isn’t an exact science and much of it can be seen as an expensive gamble but as anyone who frequents Las Vegas will tell you, only throw in what you’re willing to lose.
A look at the aforementioned trending topics featuring the company names has subthreads of conversation that state CashApp and Robinhood alike have halted the trading of $GME, $AMC, and $NOK stocks, causing many to head to Webull and other similar apps or websites to trade. However, one of those brokerage firms, TD Ameritrade, has limited trading on some of the aforementioned options. Even Ja Rule is getting in on the fight.
There is also a growing thought that Wall Street is resisting this new wave of investment frenzy as it has already sunk a number of high-profile hedge funds who lost reported billions in the wake of the trades.
On Twitter, the chatter is at a fever pitch and there are several moving parts. We’ve tried our best to capture the best reactions below. To learn more, follow the hashtag #HoldTheLine for more.
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Looks like Robinhood just stopped supporting GameStop, AMC, Blackberry, and Nokia. Users can close out positions but can’t buy more pic.twitter.com/ZOE8NJuVum
— Josh Billinson (@jbillinson) January 28, 2021
Robinhood: “let the people trade!”
Robinhood: “no not like that”
— Dr. Parik Patel, BA, CFA, ACCA Esq. ? (@ParikPatelCFA) January 28, 2021
Its wild that a stock called game stop…
Stopped the mf game ?.
Earth is funny as hell
— CHUCK INGLISH (@Chuckisdope) January 28, 2021
Robinhood actually robbing the hood
— $ulaiman (@Sulaiman_) January 28, 2021
What are the restrictions you’ve put in place?
As stockholders of these equities, and using your platform to access and manage our portfolios, we have a right to know how that platform capability has changed particularly as they directly impact our profit and loss. pic.twitter.com/RRCtgIKO0r
— Daniel (@Investandbefree) January 27, 2021
Really disappointed with td ameritrade / schwab today… hoping they don’t do us dirty again tomorrow. I’ll be reallocating my funds to a different brokerage after this week.
— kole’s mom (@kittykatkarla13) January 28, 2021
Robinhood is stopping anyone from being able to buy the meme stocks on their platform.
Charles Schwab login is down on mobile.
TD Ameritrade mobile app is struggling.
What an amazing display of the power of the people.
— Kayla Brizo (@Travelling_Fool) January 28, 2021
Robinhood and TD Ameritrade aren’t regulators. They’re brokerages. Their job is to fill orders, not set trading rules for the market
— Heidi N. Moore (@moorehn) January 28, 2021
This is why people are mad.
Retail investors don’t get this privilege.
When 2008 happened — the *public* picked up the tab.
But social media was nascent back then.
The world has changed.
The people are connected. https://t.co/CVInzcionX
— §AlexisOhanian 7️⃣7️⃣6️⃣ (@alexisohanian) January 28, 2021
Do not sell. This is market manipulation. And if it’s war they want, it’s war they shall get.
— Bridget Phetasy (@BridgetPhetasy) January 28, 2021
Individual investors are being stripped of their ability to trade on @RobinhoodApp
Meanwhile hedge funds and institutional investors can continue to trade as normal.
What do you call a market that removes retail investors ability to buy to save institutional investors shorts? https://t.co/G0hQFJDaG4
— WallStreetsBets Moderators (@wsbmod) January 28, 2021