![]() Zoom’s stock price soared as millions signed up to use its software to connect to their workplace. As huge swathes of the population moved to remote working, businesses scrambled to give employees the tools for working from home. Zoom, the video conferencing software company, was one of the early “winners” of the Covid 19 pandemic. Other Robinhood class actions linked to GameStop stock trading are still pending, however. ![]() A class-action lawsuit against Robinhood soon followed, stating that “ Robinhood’s actions were done purposefully and knowingly to manipulate the market for the benefit of people and financial institutions who were not Robinhood’s customers.” One Robinhood lawsuit was dismissed by a judge in January 2022, who claimed the user agreement allowed the company to act in such a way. Users of the app were irate, accusing Robinhood of depriving investors of their potential gains from the GameStop stock. However, instead of honoring its brand name and letting the little guy get rich at the expense of the wealthy, Robinhood suddenly decided to stop allowing users to trade GameStop. The wallstreetbets trade “won,” and pretty soon, GameStop stock was soaring to unprecedented highs. In January 2021, wallstreetbets encouraged its followers to buy stocks in GameStop, a video games store that had a low stock price and that several hedge funds had shorted (back the stock to fail). It is marketed as a way to “provide everyone with access to the financial markets, not just the wealthy.” Robinhood gained fame as the trading app of choice for followers of r/wallstreetbets, a Reddit group that encouraged its followers to make trades of stocks, often going against the positions of large hedge funds. Robinhood is a popular trading app with over 30 million users that allows amateur investors to trade items like stocks, ETFs, and cryptocurrencies.
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