Recently the words “Gamestop Stock on Cash App” “GameStop”, “Reddit” and “stock market” are combined and get thrown a lot and used on Forums and Reddit threads.
No, you cannot buy GameStop Stock on Cash App, and NYSE: GME is not listed on its trading platform for users to buy, sell, and hold GameStop shares directly through the mobile app. Cash App only has selective stock options and GME stocks are currently not available to buy.
Everyone you know, your online colleagues, and friends suddenly have become the new Jordan Belfort, and if you have no clue what they’re talking about, we’re here to help.
Basically, GameStop was at the center of a trading frenzy at the start of the year in January, which saw its share price climb by 134.84 percent on Wednesday, reaching $347.51 at the close of the market and lifting the company valuation to as high as $34bn, as Reddit investors and members from r/wallstreetbets band to drive up stocks that hedge funds had bet against.
Let’s start with the basics,
What is GameStop?
GameStop is an American street shop that sells games, consoles, and other electronics through its other family of brands and offers new and pre-owned video gaming consoles, accessories, and video game titles both in digital and physical formats.
GameStop is not anything new, in fact, it started trading way early but wasn’t doing very well due to the pandemic.
When was GameStop Corp.’s initial public offering (IPO)?
GameStop first started trading shares on the New York Stock Exchange on February 13, 2002.
Can You Buy GameStop Stock on Cash App?
No, you cannot buy GME GameStop stock on Cash App as there is no option to either buy or sell shares of the GME company. Searching for Gamestop on Cash App investing when you input the symbol or company name results in 0 results.
Cash App is joining brokers prohibiting GameStop and its trading, citing extreme volatility around the stock. Other Blacklisted stocks on Cash App apart from Gamestop include Blackberry, and Koss Corporation stocks that have been delisted from the app.
Why can’t I find GameStop stock on Cash App?
GameStop shares won’t show up on Cash App Investing’s trading platform since it was delisted and restricted from trading on the app.
Wall Street commentators have called the scenario “insane”, and like “nothing they have ever seen”.
Many members also seem to aim to make stockbrokers and hedge funds lose money with the massive “gamma squeeze” costing short-sellers billions of dollars.
With the volatility surrounding the stock, Cash App joins the growing list of brokers which restricts the trading of GameStop stock.
Why Did Cash App Restricts GameStop Trading?
Cash App shut down GameStop trading entirely on their platform due to the volatility of GameStock shares with stocks fluctuating widely in recent days, increasing as much as 1640%.
Members of r/WallStreetBets which has more than 9.8 million people in it discussing stocks and shares were bullish on GameStop’s prospects with new game consoles coming out.
Members of the subreddit noticed the heavy short-selling activity going on with the Gamestop stock.
The r/WallStreetBets Forum members banded together with the other day traders who swapped tips and bought shares in GameStop to initiate a short squeeze, which drives the price of the Gamestop stock up and forced the short sellers to buy shares and those who had banked on it dropping in value had to buy their stocks back.
So, basically, it created an effect of the feedback loop and sent the stock prices sharply in an upward trend.
With the mobile trading platform’s users erupted in anger at prohibiting its app users from buying shares and only being allowed to sell shares, and Robinhood’s CEO Vlad Tenev have been also called to appear before Congress to explain what was happening.
Cash App has added GME to the list of ‘bad’ brokers (stocks that are restricted from purchasing).
What you need to know about Cash App Stock
Cash App does not do its own stocks. Basically, Cash App has its own house rules and set up Cash App Investing as an LLC in order to get a brokerage license. But they do nothing with it.
All of the Cash App stocks are done via DriveWealth which is their carrying broker, unlike Robinhood and WeBull which do their own brokerage.
Basically, Robinhood carrying broker is Robinhood itself and the same goes for Webull. Cash App carrying broker is DriveWealth and literally, Cash App only does money transfers between cash tags and bitcoin.
So, Every other aspect of their app is a 3rd party, housed inside of the Cash App platform.
Hence, if you’re serious about stocks, we recommend using a real brokerage instead of Cash App as your Stock brokerage.
Cash App also does not have all the stocks. They only have limited major stocks and ETF.
They recently faced backlash from the app users after its clearing broker temporarily halted trading Gamestop (GME) stocks and several other shares that skyrocketed due to a Reddit-influenced stock surge.
It also doesn’t allow post or pre-market trading. So your order will be scheduled for when the market opens on Monday.
GameStop shares are currently not justified by the underlying fundamentals of the company, so they can come back sharply down at some point.
Short-term trading in the reasoning for making a quick profit is always a dangerous endeavor and even if GME shares become available on Cash App, it may be best to avoid it for now unless you’re willing to take a huge risk as when a company’s shares are trading for so much higher than they’re likely worth based, the chances of losing are higher than the chances of earning big profits unless you wanna hold it for a long time to see the storm out.
Even if the GME Stocks become available in the future on Cash App, it may be wise to stay away for a while unless you’re willing to take a huge risk.
For newbie and novice investors, Cash App Investing is a great place to start their investing journey for stock trading. You can download Cash App from either the Google Play Store or the App Store for iPhones to start setting up a Cash App Investing account.
Cash App Investing has no fee per trade, however, there may be fees required by government agencies (the SEC [U.S. Securities and Exchange Commission]).
As mentioned above, the app is more suitable for those looking to test out the water. You won’t be able to invest in any other securities on the app aside from stocks, ETFs, and Bitcoin (BTC).