Barstool Sports Founder Dave Portnoy Loses $700,000 Trying To Buy GameStop Stocks
The GameStop saga has made a lot of people very rich, but not everyone has managed to make their investment stick.
One person who lost out was Dave Portnoy – the Barstool Sports founder-turned-social media personality – who claimed yesterday that he’d bailed out of the craze, swallowing a $700,000 loss in the process.
In a series of tweets, Portnoy railed against trading app Robinhood, blaming its decision to block trading of GameStop and other so-called meme stocks last week. He said ‘I have officially sold all my meme stocks. I lost 700k ish,’ adding that RobinHood CEO Vlad Tenev ‘should be in jail’.
It’s not the first time that Portnoy has gone after some of the key figures involved in the GameStop saga, with the controversial entrepreneur last week having attacked Tenev and other hedge fund investors, who he criticised for killing the ‘Reddit Rally’.
As GameStop stock surged by 400% last week, Robinhood temporarily placed trading blocks on several meme stocks, while Melvin Capital – one of the hedge funds targeted by Redditors – received $3 billion in emergency funds from two other investment firms after losing 53% in less than a month.
Almost immediately after RobinHood placed restrictions on its app, Portnoy took to Twitter threatening, ‘I will burn @RobinhoodApp to the ground if they shut down free market trading.’
In another tweet posted last week, Portnoy criticised the actions as ‘blatant, illegal [and] unfathomable’, adding that ‘fines aren’t enough. Prison or bust’. This war of words eventually led Steve Cohen, owner of the New York Mets and founder of one of the investment firms that bailed out Melvin Capital, to say he was leaving Twitter after he and his family received ‘personal threats’.
Robinhood has since started to reduce restrictions placed on a number of meme-stocks, after facing heavy criticism from traders and high-profile business leaders alike for what many viewed as the company taking the side of Wall Street billionaires. The company yesterday took out a full page ad in The New York Times saying it had been ‘humbled’ by the events of the past week, which saw the app lose thousands of users and plummet to a one-star rating on app stores.
The outspoken Barstool Sports founder isn’t the only person who’s decided to call it quits on the GameStop craze after last week’s record rally. At close of play yesterday the gaming retailer’s shares were down more than 50%, while AMC Entertainment – another popular meme stock – lost close to 40%.
If you have a story you want to tell, send it to UNILAD via [email protected]
Most Read StoriesMost Read