Wall Street must be ready for the weekend! After a tough week of trading that saw major negative to positive reversals and a second rally for Reddit stocks, everyone needs a little rest. But before signing, what did the stock market do today? Here are the top three stories that move the market.
To start with, we saw a small jolt in the upper tickers on Friday. This morning, the big names were moving after their shifts in the quarterly earnings confessional. Throughout the day, the leaders Airbnb (NASDAQ:ABNB) Y Nikola (NASDAQ:NKLA) gave way to Fisker (NYSE:FSR) Y Occugen (NASDAQ:OCGN). It turns out that electric vehicle startups are skyrocketing higher in reserve growth, while biotech is on the rise after a Covid-19 vaccine deal with Brazil.
But what else did the stock market do today? For everything else you need to know, dive into these top three stories.
What did the stock market do today? Focus on Robinhood.
Robin Hood was back in the limelight this week thanks to a second rally on Reddit names like GameStop (NYSE:GME) Y AMC entertainment (NYSE:AMC). This time, however, the trading platform promised to stay on the sidelines and let the traders do their thing. It seems that after a hearing in Congress and a lot of bad press from the likes of Elon Musk and Dave Portnoy, Robinhood has learned a lesson.
However, the GameStop saga is not the only weight in Robinhood.
In March 2020, the company came under fire from platform outages, options activity, and reports from unauthorized actors taking over user accounts. Almost a year later, it appears that the big regulators are ready to strike a deal.
Today, Peter Rudegeair wrote for him Wall street journal that Robinhood is in talks to resolve investigations by the US Securities and Exchange Commission and the Financial Industry Regulatory Authority (FINRA). According to Rudegeair, the ongoing investigations could cost Robinhood more than $ 26.6 million in losses.
So what should investors do with all of this? Just a few weeks ago, it appeared that Robinhood had imposed a death sentence on himself. But the reality is that the trading platform is still popular, especially with the retail investors who brought it to prominence. That does not mean that the way forward for the company is easy. Before a possible IPO in 2021, he has to deal with class action lawsuits over GameStop restrictions, a wrongful death lawsuit, and these stemming investigations from March 2020.
So what about GME shares?
Speaking of GameStop, what about GME stocks?
What InvestorPlace Market analyst Tom Yeung wrote today, GameStop is in a tough spot. Its physical video game stores are still suffering and the company continues to lay off its regional management. This comes after years of focusing on shareholder payments rather than changing your old-school business. However, as we saw this week with the resignation of CFO Jim Bell and the resulting rally, there is still hope for GameStop.
For those who are not familiar with the story, Tough (NYSE:CHWY), founder Ryan Cohen has been encouraging a change from GameStop. After acquiring a 13% stake in GameStop, he secured seats for himself and two of his friends at the board. Now, he’s talking big about how GameStop can go from brick and mortar to Amazon (NASDAQ:AMZN) rival.
How can you do that? Yeung says that Cohen has a good head on his shoulders, but he needs the help of r / WallStreetBets. If the retail investors who brought GME shares to $ 500 can continue to act as activist investors, lobby the board, and buy and hold shares, they could make a difference.
Want to do your part to send GameStop to the moon? This is how the rocket can be powered..
I really would like a digital cat
NFTs, or non-fungible tokens, are a huge topic that keeps coming up on Wall Street. NFTs are a digital asset, similar in many ways to cryptocurrencies, that represent some type of tangible or intangible property. You could have an NFT that is a work of art, a virtual sneaker, a trading card, or even a digital cat that you can breed. And in recent months, NFTs have moved from the fringes of the investment world to the mainstream.
There are many reasons for this. Cryptocurrencies are now wildly popular, making the first investors in Bitcoin (CCC:BTC) and altcoins a ton of money. We are also in a time when blockchain technologies continue to advance and more investors than ever are interested in decentralized finance (DeFi). And as Felix Salmon wrote for Axios, we have interest rates near zero and the social fear of missing the next big thing.
So now we have NFT, and everyone from Logan Paul to Mark Cuban is talking about digital assets. You can read our latest roundup here and see how this emerging theme intersects with the art world and high-class auction houses.
As of the publication date, Sarah Smith did not hold (directly or indirectly) any position in the securities mentioned in this article.
Sarah Smith is a Web Content Producer at InvestorPlace.com.