Daqo New Energy Is a Budding Chinese Value Play.Demand For Public Safety Technologies Drives Motorola's Growth.Rollins Pest Control Needs to be in Your Watchlist.Don’t Chase Church & Dwight Higher Let The Price Come To You.Mondelez International Pricing Power Takes It To New Highs.How to Invest in Farmland: 7 Simple Ways.Best Bank Stocks to Invest in Ahead of Rising Interest Rates.Array Technologies Brings Solar Flare To 2023 Earnings Forecast.How to Invest in the Top Grocery Stocks for This Year.What Stock Would You Invest $5,000 in Right Now?.Google Stock Concerned About AI? Should You Be Too?.With Fed Decision Looming, Economy and Markets Wait.The Trader's Guide to Equities Research.Sarah Smith is a Web Content Producer with. On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. No matter what happens, this is a story to watch. With 1-star reviews and app deletions trending, some users think a class-action lawsuit against Robinhood is on the way. Others have used social media to support the “hold the line” and “do not sell” movements. For instance, Jeff Seibert took to Twitter (NYSE: TWTR) to ask why Robinhood would place trading restrictions if the exchange had not halted trading. Today, investors are taking to social media to decry the company. Yesterday, Robinhood was an in-demand platform representing a major moment in stock market history. InvestorPlace contributor William White highlighted exactly what is at stake. For better or for worse… Robinhood Bans Fact No. Regardless of the rationality behind the rally in these Reddit socks, Robinhood is taking a stand. Just think about the fact Build-A-Bear Workshop (NYSE: BBW) was rallying this morning! And each has raised eyebrows across Wall Street. Each has packed a punch for short-selling hedge funds. Over the last three trading days, each of these names has rocketed to new highs, propelled on by r/WallStreetBets. Koss is a legacy audio equipment maker, similar to GameStop in its brick-and-mortar retail and consumer electronics focus. Facing high short interest and pandemic challenges, a former Goldman Sachs portfolio manager identified it as a prime Reddit target. AMC Entertainment, for example, is a hard-hit movie theater operator. Investors want to find the next GameStop and be the next r/WallStreetBets millionaire. That list includes Reddit stocks:Įach of these companies has a wildly different business, but the story is similar. Seven other stocks are now too risky and too high-flying to trade, at least according to Robinhood. As of this writing, GameStop has shaved off some of its gains and is down to $226. As this all unfolds, regulators, politicians and celebrities are chiming in. David Faber warned viewers on CNBC that other hedge funds could need rescue financing. Melvin Capital has allegedly closed out its short position at a great loss. Now, as r/WallStreetBets urges its community to “hold the line” and avoid selling GME stock, hedge funds are in a cash crunch. But even beyond this narrative, GameStop has become a symbol of r/WallStreetBets. Cohen has since been added to the board, along with two other former Chewy executives. This speaks to its need for an e-commerce model and direct-to-consumer sales. Chewy (NYSE: CHWY) founder Ryan Cohen has promised to help GameStop better rival Amazon (NASDAQ: AMZN). Remember, there is somewhat of a turnaround story at play here. Along the way, users tossed out moonshot targets like $5,000, explaining how a turnaround narrative and short squeeze would pave the path. Redditors came into the spotlight thanks to massive gains in GME stock, taking struggling shares to $100, $200, $300 and even higher. It is not surprising that GameStop was the first equity to draw this ire. But what should you know now? And what other stocks are facing restrictions? Robinhood Bans Fact No. Unsurprisingly, Robinhood bans on GME stock have stirred up quite a fuss. It uses the blog post to direct customers to its expanded Robinhood Learn resources for more information about what is happening in the market. As the company advertises, this is all about keeping customers informed amid volatility. There are also additional margin requirements on certain securities. As of now, investors can only close out their positions on these stocks. In a blog post that has angered celebrities like Ja Rule and Mark Cuban, Robinhood announced it would place restrictions on eight Reddit stocks. Today, the company is taking a different stand. Yesterday, Robinhood was one of the brokerages facing outages due to all of the trading activity. Posters rally hype on r/WallStreetBets and then place their trades on commission-free Robinhood. Up until now, Robinhood has been synonymous with the massive upswings in Reddit stocks.
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