Robinhood is limiting purchases of stocks: AMC, Blackberry, Nokia, and GameStop

Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by metalliqaz on Thursday January 28, 2021 @08:55AM (#25941739)

Oh please. Robinhood's business model is not designed for this kind of thing. They are not required to tank their own business to allow malcontents to feel better about themselves.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by ericmay on Thursday January 28, 2021 @09:00AM (#25941804)

I always thought the app was good - but my view of the role of the broker is to place my trades. If the SEC wants to shut down trading of a security they should do so.

This will be very disruptive to Robinhood. I think today they made a poor business decision that will affect their valuation and potentially the company itself.

I don't do much trading on Robinhood, mostly for learning or experimenting with small amounts of money but this move has left a sour taste. I'll be closing my account, while recognizing that other brokerages are doing the same (though not all).

edit

Retail investors are locked out, $GME is still going up. What's the fucking excuse now?

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by vincentmarle on Thursday January 28, 2021 @09:05AM (#25941878)

> Oh please. Robinhood's business model is not designed for this kind of thing. They are not required to tank their own business to allow malcontents to feel better about themselves.

Well, they're gonna lose millions of customers over this I predict. How is that not killing their business?

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by TheHypnotist on Thursday January 28, 2021 @08:57AM (#25941762)

How does allowing trades tank their business? That is their business.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by metalliqaz on Thursday January 28, 2021 @09:00AM (#25941800)

Thousands of new accounts buying one stock for free (while it's at the top) and then disappearing after it tanks is not going to help them. Is this not obvious?

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by koolba on Thursday January 28, 2021 @09:01AM (#25941817)

That shouldn’t change anything if they require the stocks to be purchased with cash and not margin.

Brokerages can, and do all the time, set specific margin requirements for volatile securities. There’s no reason they can’t do that here as well. (unless they literally can’t because their tech stack doesn’t support it which would be pretty funny)

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by alex_c on Thursday January 28, 2021 @09:04AM (#25941854)

Then block new accounts for a day or two until this blows over, not specific stocks.

Why would anyone use a trading platform that now has a history of picking and choosing what trades you are allowed to make?

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by zwily on Thursday January 28, 2021 @09:09AM (#25941916)

Robinhood doesn’t let you choose your free stock, they give you one randomly.

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Re:Robinhood is limiting purchases of stocks: AMC, Blackberr... by TheHypnotist on Thursday January 28, 2021 @09:02AM (#25941824)

Yeah i'm sure they hate the traffic and the increased user base. Get real.

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