Everyone who is everyone has an opinion on the GameStop stock market controversy, including business leader Mark Cuban, who has a net worth of $4.3 billion. In fact, Cubes says that he actually respects the Reddit forum that decimated hedge funds everywhere actually made money.
On Wednesday, the Shark Tank star commented on the stock market rebellion and proclaimed his 11-year-old son had more financial sense than most.
“I got to say I LOVE LOVE what is going on with #wallstreetbets,” Cuban said. “All of those years of High Frequency Traders front running retail traders, now speed and density of information and retail trading is giving the little guy an edge. Even my 11 yr old traded w them and made $.”
I got to say I LOVE LOVE what is going on with #wallstreetbets. All of those years of High Frequency Traders front running retail traders,now speed and density of information and retail trading is giving the little guy an edge. Even my 11 yr old traded w them and made $
— Mark Cuban (@mcuban) January 28, 2021
Robinhood reacted to the controversy by saying, “Amid significant market volatility, it’s important as ever that we help customers stay informed.”
“We’ll continue to monitor the situation and may make adjustments as needed,” Robinhood stated. “To be clear, this was a risk-management decision, and was not made on the direction of the market makers we route to.”
Robinhood announced it had stopped trading of GameStop, AMC, Bed, Bath & Beyond, BlackBerry, and other stocks, after Reddit’s r/WallStreetBets drove up prices to insane highs.
“Amid significant market volatility, it’s important as ever that we help customers stay informed,” Robinhood stated. The company later purported it would “allow limited buys of these securities.”
“We continuously monitor the markets and make changes where necessary,” Robinhood stated in a blog post. “In light of recent volatility, we are restricting transactions for certain securities to position closing only, including $AMC, $BB, $BBBY, $EXPR, $GME, $KOSS, $NAKD and $NOK. We also raised margin requirements for certain securities.”
“Of course Robinhood stands for everyday investors,” Tenev said. “From the very beginning we have stood for investors opening up access. It pains us to have had to impose these restrictions and we’re going to do what we can to enable trading in these stocks as soon as we can.”
GameStop shares doubled on Tuesday and then more than doubled again on Wednesday to an incredible $347.51, before plummeting to $229 after Robinhood banned the much-ballyhooed stock on the trading platform. GameStop is up an incredible 1,250% through the first few weeks of 2021. Game Stop had been trading for $18 in recent weeks.
Since the situation broke, TD Ameritrade also “placed restrictions on some transactions” for GameStop stock.