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GameStop stock retreats as Reddit rally runs into trading restrictions

Trading platforms including Robinhood and Interactive Brokers restricted trading in GameStop retailer along with AMC Entertainment and other stocks that soared this week in a social media-driven trading frenzy that shook stock markets.

January 28, 2021 / 10:38 PM IST
Source: AFP

Source: AFP

GameStop shares sank on January 28 as trading platforms including Robinhood and Interactive Brokers restricted trading in the video game retailer along with AMC Entertainment and other stocks that soared this week in a social media-driven trading frenzy that shook stock markets.

GameStop, the video game chain whose 1,700 percent rally has been at the heart of the slugfest in the past week, lost half its value in early trading. The stock had rallied initially, then retreated, while American Airlines joined the growing list of stocks making stellar gains as small-time traders and major Wall Street institutions broadened their battle.

On Reddit thread WallStreetBets, where calls to buy stocks have helped drive the extraordinary moves, some of its more than 4 million members reported trading platform Robinhood was now preventing investors from buying GameStop and other volatile stocks.

Robinhood cited "recent volatility" in a statement on its website. It said restricted stocks also included BlackBerry, Koss and Express.