TAMPA, Fla. - Consumer investors in the Tampa Bay area are reacting to Robinhood clamping trading during an unprecedented surge on certain stocks.
Social media platforms like Reddit created buzz and hype around stocks such as GameStop and AMC Theatres, causing them to soar.
Big hedge firms that had bet those stocks would fall lost big, and as that happened, consumer investing app Robinhood clamped trading so investors couldn’t buy more shares, which many believe caused the price fall back down.
Paul Bauman just finished his master's in finance from USF Tampa. He says Robinhood’s move made the price for the shares of AMC he owns fall by at least 50%.
"I’ll say that’s cost me thousands," Bauman told FOX 13 "[It’s] enough to make you a little upset at 9 a.m. when you’re waking up to the news."
The move even has lawmakers Ted Cruz and Alexandria Ocasio-Cortez agreeing, calling on a congressional hearing.
Many on Wall Street believe the stocks are overinflated.
Vladimir Tenev, the CEO of Robinhood, said Thursday evening they restricted trading to protect their clients and the firm and didn’t do so at the instruction of any hedge funds.
On Friday, Robinhood will allow limited buying of those stocks they restricted on Thursday.
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