By Reuters Staff
6 Min Read
NEW YORK, Jan 28 (Reuters) - GameStop shares sank on Thursday as trading platforms including Robinhood and Interactive Brokers restricted trading in the video game retailer along with AMC Entertainment and other stocks that soared this week in a social media-driven trading frenzy that shook stock markets.
GameStop, the video game chain whose 1,700% rally has been at the heart of the slugfest in the past week, lost half its value in early trading. The stock reversed an early rally, while American Airlines joined the growing list of amped up stocks as small-time traders battled Wall Street institutions and a Reddit discussion board served as a clearing house for strategy messages for an army of small-scale buyers.
Steep gains in shares of GameStop Corp and other stocks this week have been described as populist market revolts. But among those out ahead are some of Wall Street's largest asset managers, which can realize gains both from their share stakes and from lending out stocks.
3 Min Read
STOCKHOLM (Reuters) - Ericsson beat fourth-quarter core earnings forecasts on Friday, helped by strong sales of 5G equipment and the ban on Chinese rival Huawei in several countries.
FILE PHOTO: The Ericsson logo is seen at the Ericsson s headquarters in Stockholm, Sweden June 14, 2018. REUTERS/Olof Swahnberg
The Swedish company’s shares jumped 7% in early trading.
Not only is Ericsson is selling more, but it is also earning more from each sale, with gross margins rising to 40.6% in the quarter from 36.8% a year earlier. Margins are now at levels of a decade ago, having recovered from the low-20%s in 2017.
AMC Entertainment Holdings Inc is exploring raising more capital, including through yet another possible stock sale, to weather the COVID-19 pandemic and take advantage of this week's rally in its shares, people familiar with the matter said on Thursday.
(Adds report of Robinhood drawing down some credit lines)
Jan 28 (Reuters) - An army of retail investors that has routed Wall Street’s professionals in recent days was dealt a blow on Thursday, after online brokerages restricted purchases of red-hot GameStop and other stocks that had soared this week.
But the shares rebounded in after hours trading, resuming their advances after Robinhood Markets Inc and Interactive Brokers said they planned to lift the restrictions on Friday.
Retail investors, celebrities and policymakers had denounced Thursday’s restrictions and participants in online forums seethed, accusing the trading platforms of seeking to protect Wall Street’s interests at the expense of smaller investors.