Why Sundial, AMC, Blackberry, and Other Reddit Stocks Soared Today

What happened

Reddit traders are back. After licking their wounds after GameStopof (NYSE: GME) Falling sharply from its highs, the army of individual investors led by Wallstreetbets appear to be trying to unleash a new round of short presses.

Here’s how some of the more popular Reddit stocks fared on Wednesday:

So what

Many investors were furious when Robinhood and other brokerage firms placed restrictions on their clients’ ability to buy GameStop and other heavily sold stocks in January. These moves helped end the commercial frenzy of GameStop and other popular Reddit actions, causing their prices to drop sharply.

Following strong criticism from investors and regulators, Robinhood ultimately decided to allow uninterrupted trading of GameStop and the other stocks it had limited purchases for. The popular trading platform said the restrictions were temporarily necessary due to skyrocketing capital requirements imposed by clearing houses during the trading frenzy. Robinhood then raised billions of dollars from investors to better comply with those requirements if trading volumes increased again.

Now what

Well, traders on Reddit seem to be preparing to test Robinhood’s newly boosted capital reserves. With the trading platform likely to be reluctant to impose further buying restrictions due to the backlash it faced the last time around, it will be interesting to see how any small pressures play out without interference from Robinhood.