Re:Robinhood, in Need of Cash, Raises $1B from Its Investors
by jiofih on Friday January 29, 2021 @02:34PM
(#25961344)
GME’s market cap is still in the low billions after the bubble, it’s not even .1% of the market.
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Re:Robinhood, in Need of Cash, Raises $1B from Its Investors
by sangnoir on Friday January 29, 2021 @03:07PM
(#25961724)
In a volatile market - a single share may trade many times a day - and Robinhood has to have enough to cover each trade (not share) - so the market cap is not a ceiling. It's likely RH didn't have enough money to adequately cover the levels of volatility (or they projected they wouldn't, soon).
Re:Robinhood, in Need of Cash, Raises $1B from Its Investors
by jiofih on Saturday January 30, 2021 @10:06AM
(#25969629)
Apple alone had a volume of 170M on Friday, for a total of $0.9B cover required, GME had 50M or $10B cover needed at ~$200.
There would have to be an insane ratio of meme-stock trading vs SP500 for GME alone to impact their cash requirements - if that’s the case it seems they dug their own grave...