Robinhood Faces Backlash After Restricting GameStop and AMC Trades
Robinhood blocks users from buying GameStop and other heavily shorted stocks, sparking outrage from retail investors and politicians alike. Meanwhile, Apple details its upcoming privacy changes and Qualtrics completes its public offering.
Robinhood limits trading on GameStop, AMC, and other targeted stocks to position closing only as retail investors continue their buying spree. This unprecedented move follows a massive surge in stock purchases organized through the Reddit forum WallStreetBets, which previously pushed both Robinhood and Reddit to the top of the app store charts. The trading platform states that it plans to allow limited buys starting the next day.
The restriction sparks immediate and severe backlash, flooding Robinhood with countless one-star app reviews and drawing rare bipartisan criticism from lawmakers. Representative Alexandria Ocasio-Cortez calls the move unacceptable, while Senator Ted Cruz publicly agrees with her assessment. The controversy highlights a growing tension between retail traders and traditional market infrastructure.
Beyond the trading saga, Apple reveals that its App Tracking Transparency feature launches by default in early spring with the next iOS 14 beta. Qualtrics successfully prices its IPO at $30 per share after selling 50.4 million shares. Other notable moves include Workday acquiring employee feedback platform Peakon for $700 million and Brazilian fintech Nubank raising a massive $400 million Series G round.