Are you hoping to buy GameStop (NYSE: GME) stock? You aren’t alone. The video game retailer’s share price has skyrocketed in recent days, experiencing gains of around 1,640%. This isn’t because of the new PS5, though.
Instead, many retail traders on a Reddit board called (r/wallstreetbets) decided to execute a short squeeze. Basically, these Redditors realized there were around 55 million shorted shares of GameStop, with many hedge funds making huge bets that the company would perform poorly and the stock’s share price would fall. Redditors started buying the stock, sending the price up instead and forcing short sellers to cover their shorts (by buying shares). This led to a meteoric rise in GameStop’s share price that’s not exactly justified by the company’s future prospects.
Some investors have reportedly made hefty profits on paper as a result of this caper, and splashy news headlines about the company’s rapidly rising share price may have you eager to jump in and get some GME shares yourself. There’s just one problem — lots of brokerages have all imposed new restrictions on trading these shares. And Robinhood halted trading of them altogether.
This may have you looking for alternatives and wondering, can you buy GameStop through Cash App Investing?
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Can you buy GameStop through Cash App Investing?
Unfortunately, if you’re hoping to use Cash App to buy shares of GME, you are out of luck. When you download the app and search in its trading platform for GameStop, nothing comes up and there is no option to either buy or sell shares.
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Cash App is joining a growing list of brokers prohibiting the trading of GameStop, citing the extreme volatility surrounding the stock. Neither Blackberry nor Koss Corporation stocks come up in Cash App’s trading platform as options for trading either. These stocks, like GameStop, have been blacklisted by some brokers because of wild swings in share price due to the potential to execute a similar short squeeze. Shares of AMC, however, are still tradeable on Cash App as of the time of this writing although some brokers are limiting the purchase of these shares as well.
You may be disappointed in these new restrictions, but they may not actually be such a bad thing. Short-term trading in hopes of making a quick profit is always a dangerous endeavor and when a company’s shares are trading for so much more than they’re likely worth based on the fundamentals of the business, the chances of losing money are extremely high.
While it may be fun to try to make a profit while wreaking havoc on hedge funds, the chances of losing big on GameStop are higher than the chances of earning big profits at this point in time.
Christy Bieber has no position in any of the stocks mentioned. The Motley Fool recommends BlackBerry. The Motley Fool has a disclosure policy.
View more information: https://www.fool.com/the-ascent/buying-stocks/articles/can-you-buy-gamestop-through-cash-app-investing/