Robinhood CEO Denies Liquidity Issues, GameStop Rallies
The most hated man in the world, Vlad Tenev, gets interviewed by Dave Portnoy. During times of tumultuous market behavior, meme stocks rally. ORTEX reported Gamestop short sellers lost an estimated $181m on Wednesday.
**Update: There is blood on the streets now. Be careful out there fam.
Vlad's revenge? The Retailers Strike Back?
Whatever you want to call this saga, it's hilarious. On Tuesday, Portnoy invited Vlad Tenev to an interview which was livestreamed on Instagram. What was supposed to be taco Tuesday ended up with the Barstool captain calling Vlad a "rat". I must say, the composure Vlad kept was admirable as he just chuckled off the fact that everyone on the planet hates his guts.
As I write this, GME has been halted down. If you bought in the 40's during the congressional hearing and sold on Wednesday at $150, congrats! you're rich! If you chased, well, I hope you chose which ramen packet flavor you like.
Vlad goes on to say the decision to curb trading last month was due to the "possibility of facing a liquidity issue in the future." he says. " we had to act to protect the firm and our customers." Okay, fine. You needed to do this to protect your ass. But why not say that at first? He made it seem like Robinhood had no liquidity issues and were not going to have any. Tenev said the decision to restrict trading was to meet the deposit requirements for clearinghouses and there was in fact no collusion between Robinhood and their daddies—er, I mean, hedge funds. Although, Portnoy makes a great point when he says, and I'm paraphrasing here, that if Vlad was guilty of being a sketchy rat, why would he admit it?
Right now, the most annoying thing are these meme stocks. Their momentum is messing up with market flows because now the trades we're in are getting f'ed up. People selling their holdings to chase GameStop and whatever else is only going to end up in bloody murder. As I type, SPY is down. Good luck to you if you're buying meme stocks, but please don't be an idiot again and end up holding the bag. Seriously. Take your profits, kiddo.
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