XAG/USD (Silver) Has Given Online Brokers A Surge in Usage Thanks to Reddit Users
While fintech investment platforms and online brokers have observed surges in overall usage, the shares of GameStop stocks climbed with fierce enthusiasm over the last week or so. Gamestop, alongside other stocks including BlackBerry and Bed Bath & Beyond, quickly earned negative reputations on Wall Street as the most hated stocks. And, although the short sellers have been met with hostility from retail investors, the Reddit community remains strong at 2.8 million members. Reddit users (r/wallstreetbets) continue to encourage one another, pushing the brick-and-mortar video game store’s stock ever higher.
The resulting usage boom, experienced by share trading mobile apps, has been due to a myriad of Redditors keen on taking on Wall Street. Various investing apps, such as Robinhood, typically maintain a slew of younger traders – especially those within the millennial generation. On January 26th, comparable mobile investing applications began hitting record rankings through market intelligence firms such as Apptopia.
With Robinhood ranking at number 8 overall in top apps across the United States, it has experienced its highest ranking thus far. Although Robinhood has observed a slow and steady rise over the last few weeks in usage, it suddenly rose on January 26th to nearly 3.8 million. According to another app data company, App Annie, Robinhood rose to the number 1 slot for iPhone financial apps on January 26th, as well.
Other various financial apps in the iPhone category saw a rise in download and usage popularity. Freetrade, which already maintains a userbase of over 300,000 members, also had a rise in premium account subscriptions. Since January 1st their subscription brand, which offers exclusive purchase opportunities such as Bed, Bath & Beyond, has more than doubled.
Within the first two days of trading for the week, GameStop experienced a 177% rise in the value of buy orders compared to the week before, according to Britain’s Freetrade. Similarly, BlackBerry observed a noticeable increase during the same period, with a 163% boost in value of buy orders. During extended trading, GameStop experienced a sharp, sudden rise in popularity, rising to $360 per share. An after-hours jump took place after Tesla’s Elon Musk took to Twitter, linking directly to the subreddit, and tweeting about the mania.
GameStop maintained it’s new reputation as the most-viewed overseas share on the Hargreaves Lansdown platform over the past week (an incumbent brokerage of the UK). On January 24th, GameStop succeeded in becoming the most viewed stock on Hargreaves Lansdown. In a similar manner, BlackBerry rose to and maintained the fifth place as most popular, on the same platform.
Susannah Streeter, a Hargreaves Lansdown senior investment and markets analyst, told CNBC “Although some of these shares have become more sought after on our platform, we are encouraging traders to diversify their holdings and invest for the longer-term instead of short-term gains.”
“We are advising people to take a deep breath before following the herd and that means doing their homework and being wary of being swept up in a frenzy of speculation.″