Online brokerage firm, Robinhood has finally lifted all the restrictions on GameStop, AMC and other Meme Stocks. The company currently lists no buy or sell limits on its support document entitled “Changes due to ongoing market volatility,” whereas last week, there were 50-plus companies included on the list.
Robinhood’s decision to restrict buying certain stocks caused controversy, leading to outcry from public figures and politicians as well as the app being review-bombed on both Android and iOS stores. What caused this? Robinhood said it wasn’t limiting trades due to a matter of principle or any deals with hedge funds, but because it had a liquidity problem when Clearing Houses required additional capital requirements on certain volatile stocks.
The day the restrictions were put in place, GameStop’s stock closed at $325. Friday, it closed at $63.77, up $10 and change. Robinhood lifting the restrictions caused a little bump in the shares on Friday but volume has decreased since last week.
Gamestop and other stocks such as AMC have come back to earth. Their share prices have decreased quite a bit in a matter of days. As investors / traders who bought shares in the $200-$400 range continue liquidating their positions, shares prices of these Meme / Volatile stocks should continue to decrease. BEARISH