Robinhood has had a tough week after it restricted trading in GameStop (NASDAQ: GME) amid high volatile times. The online brokerage restricted trading in GME, AMC & other soaring stocks, and traders were furious in return. However, after GameStop plunged 40% on Tuesday, Robinhood eased trading in the stock again.
Robinhood — famous for $0 commission trades and a combination of free shares, caught the attention of both amateur and professional traders. Consequently, the company gained success quickly and is aiming to go public in 2021. However, the company might be ahead of hard times.
On Tuesday, Robinhood allowed traders to buy up to 100 shares of GameStop again. The company had a limit of 20 stocks last week when the stock was leading a 1,500% increase. Nevertheless, Redditers described the move as “too late”. GME price lost 73%, and the short-squeeze effect faded — making investing in the stock less profitable.
Moreover, Robinhood allowed trading in the previously restricted stocks. Clients are now allowed to buy up to 1,250 shares of AMC Entertainment. Shares of AMC dropped 41% on Tuesday. Additionally, the limit of Express shares is now 3,000 and 12,000 shares for Naked Brand Group.