Popular online trading platforms, Robinhood and Interactive Brokers disclosed today they have restricted trading in shares of BlackBerry, GameStop, AMC, and other listed companies printing massive gains due to the social media-driven trading frenzy, particularly on Reddit.
GameStop, Blackberry, and others were suspended severally today, after having soared so high in the past few weeks because of support from many retail investors on Reddit.
What you should know: GameStop is an American video game, gaming merchandise retailer, and consumer electronics. The company is based in Texas, United States, a suburb of Dallas, and operates 5,509 retail stores throughout North America and Australia.
- One of the leading red hot stocks is GameStop (GME) that has rallied by more than 600% in barely three weeks – gaining from just under $20 at the end of last year to a current price of about $150.
- It is highly believed that an army of retail investors is buying the stock to hurt hedge funds that have bet against GameStop.
Robinhood in a press statement disclosed the rationality behind suspending Blackberry, Gamestop and others.
“We continuously monitor the markets and make changes where necessary. In light of recent volatility, we are restricting transactions for certain securities,” Robinhood said in a statement, adding that it was also doing so for AMC, BlackBerry (BB), Bed Bath & Beyond (BBBY), Nokia (NOK), and three other stocks.
“We’re committed to helping our customers navigate this uncertainty. We fundamentally believe that everyone should have access to financial markets. We’re humbled to have helped many people invest in the markets for the first time. And we’re determined to provide new and experienced investors with the tools and resources to help them invest responsibly for their long-term financial futures,” it added.