Reuters | |

Heavily shorted mortgage provider Rocket Companies saw its stock surge on Tuesday, in an eye-popping move reminiscent of the rallies that powered GameStop and other so-called meme stocks earlier in the year.

Shares of Rocket, the parent company of Quicken Loans, closed up 71.2% at $41.60 after being halted several times for volatility. More than 367 million shares changed hands in the stock’s busiest trading day ever.

Reuters | |

U.S. President Joe Biden’s nominee to head a key market regulator promised on Tuesday a thorough review of issues raised by the GameStop Corp stock frenzy, including whether customers were best served by some retail trading practices.

Gary Gensler, the president’s nominee to lead the Securities and Exchange Commission, said he would look into whether customers get the best prices when brokers are paid for their order flow and business practices that incentivize trading.

Kimberly Redmond | |

Online stock trading platform Robinhood Markets reportedly plans to confidentially file for an initial public offering.

The California-based company, which was at the center of the recent wild swing in shares of GameStop Corp and other “meme stocks,” has been in talks over the past week with potential underwriters...

Reuters | |

GameStop Corp shares surged more than 50% in early deals on Thursday as amateur investors jumped back into the stock weeks after an unprecedented short squeeze triggered a 1,600% rally in the video game retailer.

The latest moves build on Wednesday’s rally in GameStop and other so-called “stonks” - an intentional misspelling of “stocks” - favored by retail traders on social media sites such as Reddit’s WallStreetBets.

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Robinhood CEO Vlad Tenev told a congressional hearing that his decision to curb buying in some stocks such as GameStop Corp during a period of extreme volatility was unavoidable, but industry experts said it only underscored the risks the popular trading app was willing to accept to expand its market share.

Robinhood’s Jan. 28 restrictions on buying GameStop and other stocks that hedge funds had bet against drew the ire of its customers and U.S. lawmakers at a hearing on Thursday. They accused it of doing Wall Street’s bidding by shielding the hedge funds from an army of amateur traders banding together on Reddit to take them on.

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Months before the irrational trading in GameStop Corp, there was Hertz Global Holdings Inc.

Operating under bankruptcy protection last spring once the COVID-19 pandemic wiped out its business, the car-rental giant confronted an extraordinary situation: Its stock price was skyrocketing for no apparent reason.

Conversations at the time among Hertz management and directors on its board, reported here for the first time, turned from shock to a vigorous debate about whether the company should capitalize on its unexpected good fortune and sell shares to fund itself during bankruptcy proceedings, according to three people familiar with the deliberations.

Reuters | |

GameStop Corp shares more than halved in value on Tuesday and silver prices retreated as the Reddit-driven trading frenzy that roiled stock and commodity markets appeared to fizzle, at least for now.

The videogame retailer’s shares, whose wild gyrations have made or lost billions of dollars for hedge funds and other investors in recent weeks, closed down 60% at $90. They are now worth less than a fifth of their high of $483 last week.

Kimberly Redmond | |

Silver prices reached an eight-year high following social media calls to buy the metal and try to replicate the trading frenzy that has driven GameStop’s shares up 1,500% this year. 

On Monday morning, silver futures jumped almost 12% briefly reaching $30 per ounce following strong gains over the weekend.

The spike in demand appears to be related to day traders in the Reddit forum WallStreetBets, which has helped drive trading activity in out-of-favor companies...

Reuters | |

Robinhood Markets Inc’s user agreement is likely to protect the brokerage app from a barrage of lawsuits filed by customers after it blocked a frenzied trading rally in companies such as GameStop Corp that was fueled on social media forums.

The owners of internet platforms where much of the discussion took place are likewise shielded from liability for users’ activity under a 25-year-old law known as Section 230.

At least a dozen proposed class action lawsuits accuse Robinhood of breaching its contract with customers when it restricted trading on Thursday.

Reuters | |

U.S. hedge funds last week bought and sold the most stock in more than 10 years amid wild swings in GameStop Corp shares that many had bet against, but their market exposure to stocks is still near record levels, according to an analysis by Goldman Sachs Inc.

“According to Goldman Sachs Prime Services, this week represented the largest active hedge fund de-grossing since February 2009. Funds in their coverage sold long positions and covered shorts i...