Game Stop and AMC Entertainment share prices jumped in extended trading Thursday, following trading app Robinhood's announcement that it will be allowing purchasing of limited securities as of Friday, CNBC reported.
"Starting tomorrow, we plan to allow limited buys of these securities. We’ll continue to monitor the situation and may make adjustments as needed," Robinhood said in a statement.
Robinhood said it restricted trading Thursday on its platform to comply with capital requirements set by the SEC for broker dealers, a move which caused outrage among many of its users. "These requirements exist to protect investors and the markets and we take our responsibilities to comply with them seriously, including through the measures we have taken today," the company added.
Barstool sports founder Dave Portnoy tore in to Robinhood on Twitter, saying he would "burn Robinhhood to the ground" if they infringed on free market trading.
I will burn @RobinhoodApp to the ground if they shut down free market trading.
— Dave Portnoy (@stoolpresidente) January 28, 2021
Portnoy fumed over the issue in a Twitter video, facetiously speaking for Robinhood's position, "'Hey, hedge funds are gettin' smoked, billionaires are gettin smoked, so we’re no longer gonna let you trade on certain stocks… so all our hedge-fund billionaire friends can get out and not get killed."
GameStop shares immediately bounced back in extended trading following Robinhood's announcement, gaining 32% to trade at $255 in after hours trading after on Thursday it closed 44% at $193.60 during regular hours, CNBC reported.
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