GameStop shares double in premarket after trading restrictions are lifted.
GameStop shares doubled in premarket trading on Friday, the latest turn in a week of wild price swings in companies that have been bid up in a frenzy of activity by small investors.
This week, shares in GameStop — a stock Wall Street had given up on — have reached as high as $483 and fallen as low as $61.
GameStop had ended the regular trading session down 44 percent on Thursday but had risen 61 percent in after-hours trading. The drop earlier in the day had come as Robinhood and other trading platforms said they would limit the ability to buy certain securities, including AMC Entertainment and BlackBerry. Then the trading app reveresed some of the restrictions.
“We plan to allow limited buys of these securities” starting Friday, Robinhood said in blog post on Thursday afternoon. “We’ll continue to monitor the situation and may make adjustments as needed.”
Robinhood called its move “a risk-management decision,” and later said it had raised $1 billion to cover the costs of the high volume of transactions so it wouldn’t need to reimpose restrictions.
Other brokerage firms have also limited trading of some of the same stocks. The Securities and Exchange Commission said Wednesday it was “actively monitoring” the volatile trading.
Other stocks spurred on by day traders in Reddit forums like “Wall Street Bets” include AMC Entertainment, the movie-theater train that has narrowly avoided bankruptcy four times in the past nine months, which rose 53 percent in premarket after dropping 57 percent on Thursday. On Wednesday, its share price jumped 300 percent to $19.90. And BlackBerry, once an industry leader in smartphones. Its share price has climbed 121 percent this year. It was also trading higher on Friday.
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