In their frenzy, WSB’s cocky hordes have managed to turn the tables in a game short sellers invented, spinning gold from the complacency of others. A report from Bloomberg puts it like this: Other companies have also benefited from this push, including AMC Entertainment Holdings (AMC), BlackBerry (BB), Nokia (NOK), Express (EXPR), and more.Īs other reports have explained, retail traders such as those using Robinhood are pushing stocks that are commonly shorted by hedge funds, therefore squeezing them out of their positions. If you haven’t been keeping up with this story, GameStop (GME) stock has risen by over 1,350% during the last month, driven in large part by the WallStreetBets subreddit. New data from Appfigures today indicates how this viral retail investing trend has sent apps like Reddit and Robinhood to the top of Apple’s App Store charts.
Robinhood acknowledged in its IPO filing that individual investors could turn the company itself into the next meme stock by attempting to short it. Other investigations are open with state attorneys general and the U.S. Just this week, the company acknowledged that FINRA and the Securities and Exchange Commission are currently investigating employee trades involving meme stocks, and the fact that its CEO Vlad Tenev is not licensed by FINRA. Investors also point to the app's problems with functionality and giving users incorrect account information - both issues that are part of the reason the company was recently fined a record $70 million by FINRA, Wall Street's self-regulatory agency - as other reasons not to invest when Robinhood goes public.Īlso worrying investors: Robinhood said in its IPO filing it is facing approximately 50 lawsuits related to the meme stock trading restrictions. The stock trading app will be priced at an expected $38 to $42 per share. Robinhood declined to comment for this article. "Hood? Their ticker symbol should've been ROB," one r/WallStreetBets user wrote, referring to the fact Robinhood will trade under HOOD. The app halted users' ability to trade certain stocks, including GameStop, at the height of the frenzy, infuriating users who felt betrayed by a company whose stated mission is to democratize investing. Some of the negativity can be traced back to the beginning of this year, when the platform was engulfed in multiple scandals related to meme stock rallies. "Robinhood IPO is set to be on the market on Thursday," reads one post on r/Superstonk, a reference to a Reddit term for stocks.