GameStop stock surges 100% in premarket trading as Robinhood lifts some trading restrictions

Shares of GameStop and several other speculative stocks like theater chain AMC and BlackBerry rebounded Friday ahead of the opening bell, extending overnight gains after online trading platform Robinhood said late Thursday it will resume limited trading of restricted securities.

GameStop soared nearly 100% to $186.40 in premarket trading, after skidding 44% to close at $193.60 Thursday. Shares of the videogame chain slumped a day earlier after Robinhood and other trading platforms took steps to curb wild trading swings in shorted stocks, which angered many customers.

Stocks of cinema chain AMC and BlackBerry that have become targets for online traders also gyrated.

 

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The move came after a spate of trading by small investors of the videogame vendor hurt hedge funds that bet the stock would fall. But by late Thursday, Robinhood said it would allow limited buys of these stocks.

“We’ll continue to monitor the situation and may make adjustments as needed,” Robinhood said Thursday.

It’s been a dizzying week for GameStop. All the wild action pushed GameStop shares as high as $483 this week, up from $18 just a few weeks ago. It is up 198% for the week heading into Friday.

On Thursday, shares of AMC Entertainment and BlackBerry plummeted 56% and 41%, respectively, following the trading restrictions. AMC rallied 65% premarket Friday and BlackBerry climbed 19%.

Jessica Menton, USA TODAY

Updated 

Shares of GameStop and several other speculative stocks like theater chain AMC and BlackBerry rebounded Friday ahead of the opening bell, extending overnight gains after online trading platform Robinhood said late Thursday it will resume limited trading of restricted securities.

GameStop soared nearly 100% to $186.40 in premarket trading, after skidding 44% to close at $193.60 Thursday. Shares of the videogame chain slumped a day earlier after Robinhood and other trading platforms took steps to curb wild trading swings in shorted stocks, which angered many customers.

Stocks of cinema chain AMC and BlackBerry that have become targets for online traders also gyrated.

A fight is raging in the stock market: Should you worry about your 401(k)?

‘This is going to end badly’: GameStop gamers battle risk in fight against Wall Street

The move came after a spate of trading by small investors of the videogame vendor hurt hedge funds that bet the stock would fall. But by late Thursday, Robinhood said it would allow limited buys of these stocks.

“We’ll continue to monitor the situation and may make adjustments as needed,” Robinhood said Thursday.

It’s been a dizzying week for GameStop. All the wild action pushed GameStop shares as high as $483 this week, up from $18 just a few weeks ago. It is up 198% for the week heading into Friday.

On Thursday, shares of AMC Entertainment and BlackBerry plummeted 56% and 41%, respectively, following the trading restrictions. AMC rallied 65% premarket Friday and BlackBerry climbed 19%.

Elsewhere, futures tied to the Dow Jones Industrial Average dropped nearly 300 points after Johnson & Johnson said its one-dose coronavirus vaccine was less effective against some COVID-19 variants. Wall Street’s benchmark S&P 500 index was also poised to open lower, with futures falling 0.8% ahead of the bell.

Investors watched virus infection spikes in Europe and Asia, renewed travel curbs and negotiations in Washington over President Joe Biden’s proposed $1.9 trillion economic aid package. Hopes are high for Biden’s aid package, but worries grew that the plan might be scaled back under pressure from Republican legislators.

In early trading, the FTSE 100 in London fell 1% to 6,457.27 while Frankfurt’s DAX lost 1.1% to 13,510.71. The CAC 40 in Paris tumbled 1.3% to 5,441.20.

In Asia, the Shanghai Composite Index lost 0.6% to 3,483.70 and the Hang Seng in Hong Kong sank 0.6% to 28,369.67.

Contributing: The Associated Press

This article originally appeared on USA TODAY: GameStop stock surges as Robinhood lifts some trading restrictions