Robinhood has removed temporary limits it imposed on the purchase of so-called meme shares such as GameStop Corp (NYSE: GME) and AMC Entertainment Holdings Inc. (NYSE: AMC).
What happened: “There are currently no temporary limits on how to increase your positions,” the broker said in a one-line statement.
Why it matters: The removal of buying limits for stocks that have been popularized by the Reddit investor forum WallStreetBets is because these stocks are falling dramatically.
GameStop shares closed 42.11% lower at $ 53.50 on Thursday, falling an additional 8.09% in the after-hours session to $ 49.17.
AMC shares fell 20.96% to $ 7.09 on the same day and fell an additional 1.41% in non-business hours trading to $ 6.99.
Nokia Corporation (NYSE: NOK) – which delivered a fourth-quarter profit margin on Thursday – closed 7.02% lower at $ 4.37 and lost an additional 0.46% in the after-hours session.
This week, Tesla Inc. (NASDAQ: TSLA) CEO Elon Musk interviewed Robinhood’s CEO Vladimir Tenev and asked tough questions about the suspension of meme stock buying.
Related Link: Robinhood CEO on Trade Interruptions: ‘We Made the Right Decision’
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