Robinhood lifts some restrictions on buying Reddit-driven GameStop, AMC stocks

Company blocked stocks on Thursday

A vehicle passes in front of a GameStop store in Vernon Hills, Ill., Thursday, Jan. 28, 2021. The online trading platform Robinhood is moving to restrict trading in GameStop and other stocks that have soared recently due to rabid buying by smaller investors. GameStop stock has rocketed from below $20 earlier this month to close around $350 Wednesday as a volunteer army of investors on social media challenged big institutions who had placed market bets that the stock would fall. (AP Photo/Nam Y. Huh)
A vehicle passes in front of a GameStop store in Vernon Hills, Ill., Thursday, Jan. 28, 2021. The online trading platform Robinhood is moving to restrict trading in GameStop and other stocks that have soared recently due to rabid buying by smaller investors. GameStop stock has rocketed from below $20 earlier this month to close around $350 Wednesday as a volunteer army of investors on social media challenged big institutions who had placed market bets that the stock would fall. (AP Photo/Nam Y. Huh) (Copyright 2021 The Associated Press. All rights reserved.)

Robinhood has lifted some restrictions on buying stocks being driven by Reddit’s WallStreetBets group, allowing users to purchase GameStop, AMC and others after restricting them on Thursday.

Robinhood came under fire on Thursday after shutting down the stock buying frenzy, citing “market volatility,” while users of the trading app accused the company of market manipulation.

“This was a temporary decision made to best continue serving you, and was not an easy one to make. We know it’s led to frustration and confusion, and wanted to provide some clarity,” Robinhood said in an email to users on Thursday night. “To be clear, this decision was not made on the direction of any market maker we route to or other market participants.”

As of 8 a.m. on Friday, traders could buy and sell limited shares of GameStop, AMC, Nokia and other impacted stocks again.

Most of the stocks that were restricted on Thursday have seen an increase since buying was allowed again Friday morning.

EXPLAINER: Why GameStop’s stock surge is shaking Wall Street


About the Author:

Ken Haddad is the digital special projects manager for WDIV / ClickOnDetroit.com. He also authors the Morning Report Newsletter and various other newsletters. He's been with WDIV since 2013.