Wall Street must be ready for the weekend! After a difficult week of trading that saw significant reversals from negative to positive and a second rise in Reddit stocks, everyone needs a little rest. But before you close, what did the stock market do today? Here are the top three stories that move the market.
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To start, we saw a small change in the main quotes on Friday. This morning, big names were moving after their turn in the quarterly earnings confessional. Throughout the day, leaders Airbnb (NASDAQ:ABNB) and Nikola (NASDAQ:NKLA) gave rise to Fisker (NYSE:FSR) and Ocugen (NASDAQ:OCGN) It turns out that EV initialization is shooting higher in reserve growth, while biotechnology is rising after a Covid-19 vaccine agreement with Brazil.
But what else did the stock market do today? For everything else you need to know, dive into these three main stories.
What did the stock market do today? Focus on Robinhood.
Robinhood was back in the spotlight this week thanks to a second demonstration on Reddit names like GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC) This time, however, the trading platform promised to stay out of the way and let traders do their thing. It seems that after a Congressional hearing and a ton of negative media from names like Elon Musk and Dave Portnoy, Robinhood learned a lesson.
However, the GameStop saga is not the only weight in Robinhood.
In March 2020, the company was attacked by platform outages, options activities and reports from unauthorized actors taking over user accounts. Almost a year later, it seems that the big regulators are ready to reach an agreement.
Today, Peter Rudegeair wrote for Wall Street Journal that Robinhood is in negotiations to resolve the investigations by the United States 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 looked like Robinhood had condemned himself to death. But the reality is that the trading platform remains popular, especially among retail investors who have highlighted it. This does not mean that the path to the company will be easy. Before a possible IPO in 2021, she has to deal with class-action lawsuits over GameStop restrictions, a wrongful death lawsuit and those investigations stemming from March 2020.
What about GME’s stock?
Speaking of GameStop, what about GME’s shares?
How InvestorPlace Market analyst Tom Yeung wrote today, GameStop is in a difficult situation. Its physical video game stores are still suffering, and the company continues to lay off its regional management. This happens after years of focusing on shareholder payments, rather than turning your business around the old fashioned way. 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 don’t know the story, Chewy (NYSE:CHWY) founder Ryan Cohen is rooting for a GameStop turnaround. After acquiring a 13% stake in GameStop, he and two of his friends got seats on the board. Now, he’s talking a lot about how GameStop can go from brick and mortar to Amazon (NASDAQ:AMZN) rival.
How does he manage to do that? Yeung says Cohen has a good head on his shoulders, but he needs help from r / WallStreetBets. If retail investors who raised GME’s stock to $ 500 can continue to act as activist investors, pressure the board and actually buy and hold shares, they can make a difference.
Do you want to do your part to send GameStop to the moon? Here’s how you can fuel the rocket.
I would really like a digital cat
NFTs, or non-fungible tokens, are a big topic that continues to emerge on Wall Street. NFTs are digital assets, similar in many ways to cryptocurrencies, that represent some kind of tangible or intangible property. You could have an NFT that is a work of art, a virtual shoe, a collectible card or even a digital cat that you can create. And in the past few months, NFTs have been on the margins of the world of direct investment into the mainstream.
There are many reasons for this. Cryptocurrencies are now extremely popular, making early investors in Bitcoin (CCC:BTC) and altcoins a ton of money. We are also at a time when blockchain technologies continue to advance and when more investors than ever before are interested in decentralized finance (DeFi). And as Felix Salmon wrote to Axios, we have interest rates close to zero and society’s fear of losing the next big event.
So now we have NFTs, and everyone from Logan Paul to Mark Cuban is talking about digital assets. You can read our latest summary here and take a look at how this emerging theme intersects with the art world and high-class auction houses.
As of the date of publication, Sarah Smith did not (directly or indirectly) hold any positions in the securities mentioned in this article.
Sarah Smith is a producer of web content at InvestorPlace.com.