AOC Calls Reddit-Fueled GameStop Frenzy Similar To Movement That Put Her In Congress

Topline

Rep. Alexandria Ocasio-Cortez (D-N.Y.) claims the Reddit-driven effort that’s boosted GameStop’s stock price more than 1,500% in the past month shares important similarities to the populist political movement that won her a Congressional seat in 2018, saying both are an effort to take down “similar exploitations” by the wealthy—a view that seems to be gathering rare bipartisan support in Washington.

Key Facts

Crucial Quote

“We’re kind of seeing these similar exploitations,” Ocasio-Cortez said. “And then now as technology advances it starts to actually ‘small d’ democratize some of these systems and people are starting to figure out all these little ways in which the game was rigged.” 

Surprising Fact

The GameStop issue seems to have especially brought progressives and Trump-backing Republicans who are anti-elite. Even Donald Trump Jr. has been vocal in support of the Reddit traders.

Key Background

GameStop’s share price has skyrocketed in a short squeeze of historic proportions after an army of redditors started pouring money into the stock. Hedge funds had shorted the stock of the struggling video game retailer, expecting the price to continue to fall. The ensuing squeeze has cost hedge funds billions—a fact many on the massive subreddit r/WallStreetBets seem to have taken particular delight in. But on Thursday, Robinhood—the most popular retail trading app—abruptly shut off the ability to buy GameStop stock, leading to backlash and class-action lawsuits. It’s taken similar action to limit buying power in other popular meme stocks, like AMC and BlackBerry, and just before the market closed on Friday, Robinhood took the extraordinary step of limiting buying ability for 50 stocks. Even blue chips were impacted, with users only allowed to buy one share of stocks like GM and Starbucks.

Tangent

Another Republican who has crossed the aisle and offered to work with Ocasio-Cortez is Sen. Ted Cruz (R-Texas), but she quickly rebuffed the offer on Thursday. “You almost had me murdered 3 weeks ago so you can sit this one out,” Ocasio-Cortez said on Twitter.

Further Reading

Robinhood Will Restart ‘Limited’ Trading In Meme Stocks GameStop, AMC As Reddit Rally Unravels (Forbes)

Robinhood’s Trading Freeze Unites Political Foes From Cruz To Warren — And They’re All Angry (Forbes)

Why AOC And Donald Trump Jr. Both Back The Reddit Investing Craze (Forbes)

Robinhood Faces Anger, Class-Action Suits And Political Pushback After Curbing Trade Of GameStop (Forbes)

Robinhood Clamps Down Again: GameStop Buys Limited As Stock Soars (Forbes)

AOC Rejects Ted Cruz’s Help In Investigating Robinhood: ‘You Almost Had Me Murdered Three Weeks Ago’ (Forbes)