The meteoric rise of stocks discussed on Reddit’s WallStreetBets forum — like GameStop
GME,
-33.55%
and AMC
AMC,
-48.89%
— has caused major disruptions in the stock market.
Stock trading companies like Robinhood, TD Ameritrade and Interactive Brokers
IBKR,
-0.43%
have halted purchases on such stocks.
The moves to restrict trading have led to complaints about the lack of free trade going on in the markets. Among those criticizing the move is billionaire Mark Cuban.
Barstool Sports’s Dave Portnoy, a notoriously active day trader, is also criticizing Robinhood for its lack of “free trading.” Barstool Sports is owned by Penn National Gaming
PENN,
+9.31%.
And some politicians of both parties have gone after Robinhood’s decision to restrict trading on stocks like GameStop and AMC — including Rep. Alexandria Ocasio-Cortez and Sen. Ted Cruz.
Robinhood recently created a post addressing the situation.
“Our mission at Robinhood is to democratize finance for all. We’re proud to have created a platform that has helped everyday people, from all backgrounds, shape their financial futures and invest for the long term.”
Some people on Twitter
TWTR,
+7.76%
are pointing out the irony of the post by resurfacing a tweet from Robinhood in 2016 alluding to the concept of free trade.
GameStop shares are down 25% and AMC is down 46% percent during early afternoon Monday trading. GameStop’s stock soared 2,876.5% over the past three months, while the S&P 500
SPX,
+2.00%
gained 16.1%.
