Drama On Wall Street Robinhood App Users Vs. OG Investors

Okay, so we are going to have to sort through this mess Monday morning with Dr. Cheryl McKeiver. The trading app Robinhood has created a whole lot of drama for Wall Street it’s users, some members of Congress, and now to add a lawsuit.

From what I understand you have people who are using the trading app more because of the pandemic. They are working from home or just home and not working and trading with Reddit. As a result, GameStop’s stock at one point skyrocketed up to 1,700%.

How did it happen?

Well, it is kind of simple you create a “fake” demand and force Wall Street short-sellers betting the stocks would fall to recalibrate their bets. That pushes the stock price higher and it causes investors to have to back up their bets against GameStop meaning they have to pay up.

So basically you sort of have a battle happening on Wall Street between younger people and the “OG’s” of Wall Street.

GameStop was not the only stock. AMC and Blackberry were some of the other stocks users of the Robinhood app were trying to target.

Here are a few different stories that explain everything if you want to take the time to read. However, we will have Dr. McKeiver on Monday to help navigate us through what’s happening on Wall Street and will there be changes coming.

CNN: Class-Action Lawsuit Robinhood

The Verge: Google Salvaged Robinhood

CNET: Reddit’s GameStop Stock Battles

Reuters: U.S. Lawmakers Says Robinhood Decision Unacceptable