Robinhood just restricted BANG stocks from being bought on their platform. (BB AMC NOK GME), while other brokers like fidelity are still allowing it. They used to have the allure of empowering the little guy, but seems like they’ve soiled it with this super establishment type move. Again there are a handful of brokers who are restricting the trade not just them, but I see Robinhood getting hurt the most by this, as it is an extremely off brand move. It’s like if Apple just started selling your data for ads. Is this the end of Robinhood as a platform?
IMO they might not be able to come back from this. This controversy is far beyond anything we’ve seen. Think of Facebook’s user data scandal. This is making that look like a tiny kitten because 1) no FB user lost money from it and 2) FB users are tied to the platform through friends. RH users don’t have much brand loyalty other than the elegant/intuitive UI. That’s nowhere near enough to save them from the boycott unless they take some immediate remediation. IMO there’s a very good chance RH is done. I’m surprised major investors aren’t taking action to roll back RH’s decision to limit buying because this could kill their investment. Even if RH removes the buy restrictions, it’ll take them a long time to earn back user trust, if ever. I’m personally withdrawing all funds out of my RH account in case there’s a crunch if/when they get boycotted.
They're just taking the fall for their brokers & the interest groups behind them, to be honest. People will blow all their anger on this shell of a front company, they'll be made a scape goat, go bankrupt, etc. But the people behind it will go free and continue doing what they're doing. This is all very calculated. All the blame right now is being channeled to this one crap shoot of a company, as if they were responsible for all of it when it's obvious they - and other brokers - were ordered to cease trading by people much, much more powerful. If I were one of those people, I'd be laughing my way to the bank right now because the public is falling for it.
Only people who vote No are probably RH employees whose been awfully quite today
Not one comment from them.
They're busy trying to clean shit off the fan.
RH did their users a favor. RH traders only cash out if the short sellers exit their position. But the short sellers, who are allegedly hedge funds with billions of AUM, have no reason to do it. In fact, they have every reason to double down on their short position, because the stock is obviously not worth that much and they know it. So in the end, it is the RH traders who will end up needing liquidity and selling their stock, losing a ton of money in the process. RH may have made the loss come faster, but they also prevented RH traders from losing billions more than they already will. Make sense?
makes absolutely no sense
Interest rate on short positions was almost 80% at one point. I think it’s lower to 50 now but short sellers can’t hold that forever no matter how big the hedge fund is. So for GME holders it was a question of who can hold out longer. With more than 140% short, if all the shorts had to close then they would be the ones in the end holding after buying from the longs. So when rh says they were protecting users from losing more, that’s false. Even if it were true, it’s not the place of RH to decide when an investors loss should be or how much they should lose. Protecting investors could be done in the form of multiple warning signs and terms to click “I accept” on before trading. This was an effort to lower the demand for GME not protect investors
https://finance.yahoo.com/video/heres-why-robinhood-restricting-users-173049721.html People need to understand why before you start throwing rocks.. for people who say let’s go webull, news for you, even they restricted trading the volatile positions.
Then why did they restrict other stocks too like BB, NOK, etc? FOH
Probably did it after volume analysis on their end
Whistleblowers robinhood employees?
Cash App to buy and sell stocks
Venmo me 200$ and I’ll give u a gme share
Between this and GuhGate a while back they've lost most of their credibility with the customers who put them on the map. Someone will come out with a better platform soon enough. This kind of rise and fall is the nature of the tech industry.
Robinhood is dead to me - doing a transfer (not sell but transfer) to Fidelity. They have some of my business already and now they can have the part which Robinhood threw away.... not business they lost but threw away.
Way overblown. Multiple stock brokerages halted buying these stocks. This incident doesn't change anything. Robinhood is still the most easily accessible brokerage and by far as the best UI.
Citadel maybe the one who told to shoot retail investors. But RH is the one, who got that gun, pointed it to retail investors, pulled that trigger while saying their platform is to support retail investors.