The stock price of GameStop and other “meme stocks” jumped overnight after Robinhood and other stock trading platforms announced they would resume “limited” trading of certain restricted stops today. As of press time, GameStop’s stock price is nearing $350 a share, all but erasing the massive drop in price during yesterday’s tumultuous day on Wall Street. GameStop and other “hot” stocks chosen by retail investors on the Reddit board /r/WallStreetBets all received price bumps overnight after Robinhood, a commission-free trading app, announced that it would allow for “restricted” purchases of stocks it had previously de-listed due to market volatility. AMC, another stock popular with individual investors, saw its price jump by 40% overnight after an equally rough day on Wall Street.
As a brokerage firm, Robinhood has many financial requirements, including SEC net capital obligations and clearinghouse deposits. Some of these requirements fluctuate based on volatility in the markets and can be substantial in the current environment.
