Robinhood Clobbers ‘Meme Stock’ Craze by Blocking Purchases of GameStop Shares

(Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)

The meme stock craze may have just ended in a flash. On Thursday morning, stock-trading app Robinhood announced it was restricting users from buying new shares in GameStop, AMC, and BlackBerry.

“In light of recent volatility, we are restricting transactions for certain securities to position closing only, including $AMC, $BB, $BBBY, $EXPR, $GME, $KOSS, $NAKD and $NOK,” the company said. Users who own the shares can now only sell them. 

The companies’ stock prices had all been soaring, thanks to users on a Reddit forum called r/wallstreetbets, which has 4.5 million followers. They banded together to buy shares in companies that hedge funds were betting against.

The biggest winner has been GameStop, a struggling video game retailer that saw its stock price balloon from $17 on Jan. 1 to an insane $347 yesterday. As a result, some users on wallstreetbets reported raking in tens of thousands, and even millions, of dollars from the stock buy. 

Gamestop's stock pricepost on the forum says. Others have been telling users to hold on to their stocks.

January 28, 2021
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