Robinhood is catching flak on social media after initiating a ban on buying stocks that have been the target of traders from Reddit WallStreetBets.
Robinhood is an app that allows investors to buy and sell shares of stocks without the need of a stockbroker. It’s gained popularity of late due to how easily it allows for the trading of shares. That’s also made it the main platform of use for many small investors.
Robinhood is now stopping these small investors from freely trading due to the recent rise in Reddit stock squeezes from members of r/WallStreetBets. That, in turn, has angered many online and have led to a surge of negative reviews dropping the app to a one-star rating on the Play Store. Many of these reviews also mention deleting the app and moving to a new one for stock trading.
Here are a few examples of outrage over the Robinhood ban from social media users.
Not sure why anyone would rely on @RobinhoodApp again.
Either the exchange has halted trading on a stock, or it hasn't.
Either public discussion of public stocks is legal, or it isn't.
This isn't their call to make unilaterally. Expect the lawsuits to be swift, and successful.
— Jeff Seibert (@jeffseibert) January 28, 2021
NASDAQ lets Hedge Funds run wild all day and Wall Streeters plot/pump up their views 24/7 on CNBC & investor conferences. But at the hint of being beat at their own game Robinhood and Discord pull rug from redditors in 24 hours
My monologue today: https://t.co/Bmj1BldLoT
— Saagar Enjeti (@esaagar) January 28, 2021
— Barstool Sports (@barstoolsports) January 28, 2021
I smell a class action lawsuit for @RobinhoodApp
— Payne Lindsey (@paynelindsey) January 28, 2021
So are @robinhoodapp and @IBKR ending trading in #wallstreetbets stocks because they are losing their ass on these trades ? Or maybe they dont have the cash to enable the trades at this scale ? Anyone have any insight on their economics ?
— Mark Cuban (@mcuban) January 28, 2021
Wow @RobinhoodApp. Can't wait to join the class-action lawsuit. Talk about a terribly named company.
— Jason Moore (@jasonffl) January 28, 2021
Investors that want to know more about the Reddit trading boom can check out the following articles for additional insight.
- BLIAQ Stock: 7 Things to Know About the Blockbuster Remnant Amid the Reddit Run-Up
- JAN Stock: JanOne Shares Skyrocket as Part of Reddit Run-Up Fever
- Silver Stocks News: Is a Reddit Silver Squeeze Targeting AG Stock? Other Mining Stocks?
- Reddit’s Wall Street Bets: 5 WSB Stocks That Could Be the Next GameStop
- Reddit Traders Squeeze GameStop, And These 5 Stocks Could Be Next
- CVM Stock: Why Cancer Play Cel-Sci Is Riding the Reddit Wave
- AMC Stock: The Next Reddit WallStreetBets Stock of the Day?
- GME Stock: 11 Things to Know About the Wild GameStop Drama on Reddit WallStreetBets (WSB)
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.