In the early friday after Robinhood lifted the trade limit imposed on Robinhood in the midst of the market chaos last week, two Reddis favourite meme-stock stock jumped.
As of 7:08 a.m., GameStop shares increased 5% from $56.20. Whereas the AMC Entertainment film chain has increased by 3.2% up to $7.32 in the premarket market, the deep losses they suffered this week have been slashed back.
Early Friday morning after a week of limitation of the number of stocks its users could purchase, Robinhood removed restrictions on the two stocks. Last Friday, in response to its decision to block clients from buying any GameStop shares, the Income App imposed the limits on GameStop, AMC and other stocks.
The move by Robinhood reinforced amateur investors in Reddit’s forum WallStreetBets who pumped up the share price of GameStop in a campaign to squeeze hedge funds against the stock last week.
“Boys this is it,” Reddit user Anthony632 wrote. “Now that we can trade we can buy and that’s how we win by buying. The more we buy the more we drive up the price and make money.”
However, other WallStreetBets residents noted that GameStop shares have only crashed in pre-market trading after the opening ceremony. This week, video game stocks have fallen by almost 84% while AMCs have fallen by over 46%.
Since the startup, members of WallStreetBets have joined other brokerage firms to stop customers sharing GameStop and other shares which exploded last week as a result of a revolution in retail investors which attracted regulators’ attention and prompted a meeting of the congress.
Robinhood CEO Vlad Tenev said that after a $3 billion clear-line demand he was forced into a decision from a Wall Street clearinghouse called the National Securities Clearing Corporation.