Alexandria Ocasio-Cortez will discuss today's controversial developments surrounding GameStop's stock on her Twitch channel at 8:30 PM ET. The Democratic Congresswoman from New York, known popularly by her initials AOC, has spoken out multiple times about the decision by various trading platforms to ban purchases of so-called "meme stocks" of companies like GameStop, BlackBerry, and AMC. Placing restrictions on the stocks ended a multi-day rally that centered on individual investors squaring off against large Wall Street hedge funds. Notably, Ocasio-Cortez is a member of the Financial Services Committee, and has stated her support of investigating today's developments. AOC is also a proficient Twitch user, having played games like Among Us while simultaneously raising awareness of various causes and positions she believes is important.
Inquiries into freezes should not be limited solely to Robinhood.
This is a serious matter. Committee investigators should examine any retail services freezing stock purchases in the course of potential investigations - especially those allowing sales, but freezing purchases.— Alexandria Ocasio-Cortez (@AOC) January 28, 2021
Ocasio-Cortez's involvement is just the latest development in the hottest story coming out of Wall Street, which has inexplicably drawn together a wide-ranging group of investors, individuals, businesspeople, and politicians. GameStop stock became a hot commodity last week after a group of individual investors organized mostly on the Reddit community /r/WallStreetBets rallied to purchase and then hold the stock, creating a market phenomenon known as a "short squeeze." Hedge funds and other major Wall Street movers had speculated that GameStop's stock would drop in value in the midst of its well-documented struggles during the COVID-19 pandemic and decided to "short" the stock, triggering a series of transactions that would prove profitable if GameStop's stock dropped in value. As GameStop's stock price continued to rise, those hedge funds and investors were forced to purchase shares to cover their losses, thus driving up the price.
Although the grassroots campaign surrounding GameStop seemed poised to continue today, the stock's jump in price came to a screeching halt when various trading platforms placed restrictions on the stocks. With many investors locked out from buying stock, the move created a mass selloff that sent the prices of GameStop and other stock companies plummeting. The move drew widespread condemnation from both investors and talking heads on both the left and right, with many criticizing the inexplicable restrictions placed to hamper a supposedly free market, while also creating benefits to a select few insiders.
GameStop's stock has been volatile throughout the day, but has mostly stayed in the $200-$250 range, far below its peak performance yesterday.