AMD dares to trade in WallStreetBets as the shadowy Robinhood frontier


This week is an insane for companies badly hit by the COVID-19 epidemic. We are definitely talking about companies like GameStop, and to a lesser extent, AMC theaters and Blackberry. It is a long story, and we suggest that if you are new to all the drama then you will hold onto our previous coverage.

although Cliff’s Notes The version is that Wall Street hedge funds have shortened GME shares for the long haul, anticipating the eventual demise of the company to dent billions in profits. Reddit community WallStreetBets, however, has decided to “stick to the man” by buying GME shares, raising its stock price. GME, which traded at less than $ 10 a share in mid-2020, is now trading at around $ 325. Needless to say, the “little man” day traders who have got in a hurry are building banks, while hedge funds are shaking in their shoes and Out in epic fashion.

So where are Robinhood and AMD Factor in all this?

This brings us to Robinhood, which, following the announcement by WalweightBacket, day traders and even lawmakers, called it “restricting transactions to certain securities, $ AAL, $ AMC, $ BB, $ BBBY, CTRM including $, $ EXPR, $ GME, $ KOSS, $ NAKD, $ NOK, $ SNDL, $ TR and $ TRVG. ”Robinhood claimed it took steps to protect its customers from” significant market volatility ” Even though most people knew they were working exclusively Exactly what were they doing.

The trade blockade caused GME and AMC shares to fall 21 percent and nearly 50 percent respectively before Thursday. [mostly] Recovering from those losses on Friday.

Robinhood App Limitations Share Purchase
AMD placed it on Robinhood’s restricted stock list last weekend.

But one company that was stuck in this small selling / walcritbats counterattack is AMD. AMD is a company that does not belong to the entire GME drama (apart from making CPUs and GPUs in game consoles), but was also placed on Robinhood’s restricted stock list.

AMD discusses Wallstreetbets reddit
Potential explanation of hedge fund strategy. Credit: Reddit / R / WallStreetBates

On Thursday and Friday, Robinhood limited its users to buying only a portion of AMD. As you might expect, there was an immediate resentment about this turn of events. Unlike Gametop, or many other companies that were targeted by Robinhood, AMD actually has a solid financial footing.

amd robinhood error message
Received error message while trying to buy more than 1 share of AMD through Robinhood.

In fact, AMD posted 45 percent revenue-year-over-year growth for 2020, and 52 percent uplift of $ 525 billion in full-year profit. All AMD’s business units were on fire with the standalone Ryzen and Radeon GPUs for the semi-custom chips used in the PlayStation 5 and Xbox Series S / X for their EPYC data center processors. Despite a large earnings win, AMD was greeted with a dramatic drop in its share price, and later with the intervention of Robinhood.

Why is AMD targeting Robinhood now?

Redditor Bvllish was one of the first to bring AMD to attention by Robinhood, and destroyed the move,

This is important because it is a large-scale manipulation of AMD’s stock. By limiting purchases on one share, Robinhood is creating artificial selling pressures that can lower the stock price. AMD’s short interest (the number of betting that AMD’s share price will go down) has also increased over the past month. AMD also holds one of the most held shares on Robinhood. An attack on AMD’s stock is an attack on the company.

There has been a lot of activity around AMD during the last three weeks, with the current level reaching 110 million with an interest rate of less than 52 million in January. Given AMD’s rapidly growing financial conditions, WallStreetBets and second-day traders sniff a rat (or perhaps long-selling shorts on AMD to maintain liquidity after taking a beating on GME).

Welcome to the endgame. From r / wallstreetbates

“notice how [mainstream media] Saying that earning a beat was ‘expected to convince’ [share price], “added zqv7.” And yet, there was no run-up before earning to actually price it. Covers the suit. “

The fight against Robinhood & Shorts makes no sense

Popular opinion seems to be that the Walcritbats and its self-labeled “degeneration” giants are now gearing up to pursue AMD stock, and Robinhood does not want to grab the flat-foot. However, these restrictions are only helping to further the company’s mistrust of its users and get lawmakers investigated, including the SEC – something that most trading companies try to avoid at all costs.

Robinhood’s mockery as his actions have escalated in just a few days – while legal – at odds with a movement that is set to take on top Wall Street hedge fund firms. Degraded companies are willing to create their own companies that reduce their fortunes, while also making some money for themselves.

Overflowing at Robinhood Headquarters from R / WallStreetBates

It appears that some “descendants” are also using their new money to openly use Robinhood in broad daylight (as seen by the video embed above). It is a quick face of luck for Robinhood, which has been praised for its ease of use and access to casual traders. However, the turning of Robinhood’s name to “steal from the rich and give to the poor” has been reversed here, which explains why its feet are now being held for cosmic fire.

So far, it appears that AMD has been removed from the list of restricted shares of Robinhood, but we don’t know if the same will happen tomorrow when the market will officially reopen. Whatever the outcome, the damage to Robinhood’s reputation is clearly already done, and it will be interesting to see the fireworks if the SEC takes action against the next company.

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