The meteoric rise of stocks discussed on Reddit’s WallStreetBets forum — like GameStop GME, +67.87% and AMC AMC, +53.65% — has caused major disruptions in the stock market.
Stock trading companies like Robinhood, TD Ameritrade and Interactive Brokers IBKR, -3.65% halted purchases on such stocks on Thursday.
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, -3.09%.
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, -2.02% are pointing out the irony of the post by resurfacing a tweet from Robinhood in 2016 alluding to the concept of free trade.
Late Thursday evening, Robinhood said on its blog that “limited buys” of the previously halted securities will resume on Friday, adding that it will “continue to monitor the situation and may make adjustments as needed.”
Both stock’s rallied during Friday morning’s trading as GameStop is up 63% and AMC is up 49%. GameStop’s stock soared 2,876.5% over the past three months, while the S&P 500 SPX, -1.93% gained 16.1%.
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