What A Sh*tshow: Robinhood Restricts Trading for GameStop & AMC

Chamath Palihapitiya for President.

Trading shares of gaming retailer GameStop [$GME] and theater chain AMC Entertainment Holdings was restricted Thursday, after Wednesday’s session of yuge gains and brokerages completely putting the kibosh on it.

Both stocks were halted several times on the NYSE in Thursday’s early session due to the overpowering volatility. GameStop shares, which had jumped 39% in early trading to hit an intraday high of $483.00, were last down 24% at $264.01. If GameStop shares finish lower Thursday, that would snap a five-session winning streak where shares surged 788%.

AMC [$AMC] shares plummeted 55% to $9.00 after opening at $11.98, well below Wednesday’s close of $19.90. On Wednesday, GameStop closed at a record high $347.51 after a modest 135% upswing, while AMC shares quadrupled in price as buying by individual investors went head to head with Wall Street firms holding short positions.

On Thursday, the crooks over at Robinhood restricted trading of GameStop and other volatile stocks that have gotten caught up in the entanglement between pajama traders and Wall Street hedge funds. What’s more, Interactive Brokers said it would allow investors to trim positions of volatile stocks like GameStop, but would not be allowed to add to or scale into new ones. That followed restrictions on GameStop and AMC trading by TD Ameritrade and Schwab on Wednesday.

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