Posted on 02/02/2021 7:25:04 AM PST by knighthawk
The online brokerage Robinhood has taken out a full-page ad in the New York Times saying that it is 'humbled' after recent controversy over its limits on buying certain stocks during the 'meme stock' frenzy fueled by an army of small investors on Reddit.
The ad on Tuesday follows massive backlash against the popular trading app, which at one point last week restricted the purchase of 50 different stocks as it struggled to meet capital requirements.
Shares of GameStop, the struggling video game retailer that was the focus of a buying campaign on the Reddit forum WallStreetBets, slid another 40 percent in early trading on Tuesday, signaling that the staggering rally might be at an end.
(Excerpt) Read more at dailymail.co.uk ...
Who did not expect it to drop to $19 again? It was an obvious and huge short opportunity.
yea......congress will fix it...…..
$86 now
There's only one question and everyone knows the answer; will Robinhood pay back investors who lost out on opportunities when Robinhood blocked their trades in order to protect the hedge funds?
Robinhood is likely insolvent since traders have already closed their accounts and moved to other apps. The only question now is how the investigation goes; Robinhood can't expose who told them to block the trades, especially if it came from Xao Bai-Din's handlers and Yellen at the Fed. Robinhood instead has to be the fall guy and crash and burn.
The bigger picture is now that curtain has been pulled back further on the illicit dealings with the stock market, how does the market sell the propaganda that there's any integrity in it? Using the standard propaganda rag of the New York Times to sell that lie doesn't help.
All the market manipulation in the world (and let’s understand, that’s exactly what the Reddit users did) will change the fact that Gamestop is a failing company.
We “put our customers first.”
“First” in line to get pushed under the bus.
My son bought a bunch at $50+- and sold for $358.
All in a week!
That’s the way it goes!
So true. Someone posted that short sellers ruined some companies they had invested in. NO! In the real world, if a good company with a good product or service and market goes undervalue, due to a short term selling, buyers gladly back up the truck and buy, buy, buy, happy to step in and get something they want at discount sale prices.
Pointing out once in a decade short interest is not manipulation, it is awareness by a crowd that the media ignored for better part of 9 months. Each one of those folks in the mob put their own drinkn money down on a bet against in cash. That so many other traders thought they were looking at sears or toysrus was the mistake. $12 kills the hedggies. Some hedggies make one the fall as it goes back down but it is going to tie up tremendous amounts of margin.
A good portion of the stockholder have a cost basis of below 10 bucks, the people who bought north of 40 on this place are insane, and the people who put in a stop north of 40 are awesome, 99% of the not insane will be long gone before 20.
If own GE at a cost basis of 9 dollars, it goes to 180 and falls to 90 before I stop out, I still get returns I never dreamed of what I consider a speculative play. Do I hang on to 5% just to see what happens...for sure. Do I invest in GE again like a Heggie, No there are to many investors who now consider their cost basis to be zero like me, they sold their doubles several times over. I sit and wait to see if they lift it again.
Check out all the retards on:
https://www.reddit.com/r/wallstreetbets/new/
all claiming they are holding despite enormous losses....because they want to ‘stick it to the man’.
These fools will never learn. The scammers front-ran this whole thing, made off with enormous gains selling the shares the bought for $20 to idiots at 300 or 400+, meanwhile they are using an army of bots to tell the dupes too ‘hold and never sell’.
Life is hard, it is harder when you are dumb.
It was an organized effort to pump up the price of a stock. That’s manipulation. When a broker does that it’s illegal and they can lose their license.
They are looking at a Sears of ToyRUs. GameStop is a doomed company. Between poor relations with the customers and being left behind in the market place they won’t be around long.
A lot of companies benefit from being heavily shorted. It’s a good chance to buy their own stock back for cheap.
But in the real world the professional short sellers start dropping hints about how bad of shape the company is in. Banks stop lending them money, vendors demand cash up front instead of selling net 30 and customers may go elsewhere for long lead items. The prediction is self fulfilling.
Not sure Robinhood survives this.
This is funny/sad. Someone should investigate this WSB/GME/Robinhood/Wall Street mess but given the current level of mistrust in this country no one is going to believe anything that would come out of any investigation and they’d be right to doubt the results. We’ve managed to get ourselves into a circular firing squad and outside influences are just waiting and hoping for some idiot to be the first to pull their trigger. How did we fall so far, so fast, or maybe we’ve been falling for a long time and have managed to hit some sort of bottom
You may be forgetting that Professional stock buyers do their homework and just don’t fall for rumors, false hints.
Rumor/hint “Books look really bad”. They call the CFO, find out that is bogus, and then step in and happily buy the stock at a discount.
Finally grabbed some GME around 83 this morning. Sell off way overdone for now
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