With this funding, we’ll build and enhance our products that give more people access to the financial system. We’re witnessing a movement of everyday people taking control of their own financial futures, many investing for the first time through Robinhood. This funding is a strong sign of confidence from investors and will help us build for the future and continue to serve people through the exponential growth we’ve seen this year. It explains why the company has just felt able to relax the restrictions on GameStop purchases today ( see previous post).
In practice, this $3.4bn will help Robinhood meet the higher collateral requirements set by its clearinghouses due to the volatility in stocks such as GameStop, AMC and BlackBerry. Robinhood says the funds will help it “continue to invest in record customer growth”. In another interesting development, Robinhood has raised another $2.4bn from shareholders - just days after investors agreed to provide $1bn to help it through the turmoil that hit markets last week. 17.45 GMT Robinhood raises another $2.4bn This at times over the last week or two appears to have contributed to the risk-aversion but we’re not seeing much of that today.
It will obviously be fascinating to see which area of the market Reddit traders target next and what the knock-on effects will be elsewhere.
I guess we’ll see over the coming days just how much sentiment has improved but I’m not particularly optimistic. Of course, stock markets are coming off a tough start to the year, in particular the last few weeks, so we may just be seeing a little bit of reprieve led by the miners. Mining stocks the latest beneficiaries of the Reddit frenzy but gains are more widespread than just these stocks. They usually do well when traders are more optimistic about UK economic prospects,Ĭraig Erlam, senior market analyst, OANDA Europe, says February got off to a good start.Ī decent start to the month after a difficult opening month of the year, with Europe ending the day up around 1% and US stocks also enjoying modest gains. UK retailers also had a good day, with JD Sports up 7% and Primark owner AB Foods gaining 4%, while housebuilders Berkeley, Taylor Wimpey and Barratt rose 3.7%. In London, the FTSE 100 index ended 58 points higher at 6,466, up 0.9%, with silver miner Fresnillo the top riser (+8.9%). The Europe-wide Stoxx 600 index closed 1.2% higher, despite concerns over the pace of Covid-19 vaccine rollouts in the EU.
#Silver squeeze full#
The GME short squeeze is in full force.Įuropean stock markets had a solid day, recovering some of last week’s losses. Both fundamental and momentum short sellers have found opportunities and price exit points to trim their positions in the face of these losses. While long shareholders are looking at significant mark-to-market gains, shorts are now down -$15.31 billion in year-to-date mark-to-market losses. Long shareholders have been able to support GME’s stock price and rally it to historically high levels. GME price volatility has been remarkably high, and the stock has gained +400% over the last week. GME shares shorted are now 27.13 million. Short sellers bought to cover and trimmed positions as they incurred large mark-to-market losses. Over the last few days, GameStop short interest has decreased from $11.20 billion to $8.82 billion. Those hedge funds will have incurred heavy losses by closing their short positions, and also lowered the amount of GameSpot shares shorted.Īs S3 short insight data shows, GameStop shares shorted significantly declined as short sellers began liquidating their holdings. They’re currently hovering around $242, down 25% today - but still up around 1,200% this year.įintech firm S3 Partners has reported that the hedge funds have been cutting their short positions in GameStop, meaning the short squeeze is in ‘full force’. GameStop’s shares have come under pressure today, dropping by over 30% at one stage. One theory, popular on WSB, is that hedge funds have been attempting to lure small investors into attempting a ‘short squeeze’ on silver, rather than maintaining their focus on heavily shorted stocks like GameStop. Some analysts attributed the frenzied rise to retail investors, with bullion dealers reporting a surge in demand for coins and bars over the weekend.īut on Reddit, several popular WallStreetBets posts insisted that they’re not behind the surge in the silver price today. Silver hit $30.03 per troy ounce for the first time since February 2013 today, surging over 10%, but has now dropped back to around $28.60, up 6% today. Silver has risen to its highest level in eight years, amid a burst of activity in the precious metal. Photograph: Olivier Douliery/AFP/Getty Images
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