Robinhood is back to a one-star rating, but Google isn't coming to save it
Update, Feb 3 (9:00 pm ET): Google says it won't step in this time to save the app rating
What you need to know
- Robinhood blocked trading to a number of stocks after trading surged thanks to a group of Redditors.
- GameStop, Nokia, AMC, and other companies were affected by the surge.
- Robinhood's rating on the Google Play Store tumbled after a swarm of negative reviews plagued the app.
Anyone following the drama surrounding Robinhood knows just how much of a mess it's become. For those not aware, the mobile investment app has been under fire after it halted trading to a number of companies after they saw their shares surge. Many people weren't happy with the decision, calling it market manipulation, and even prompting a lawsuit against Robinhood. Another result of the drama is the app saw its rating drop on Google Play Store following a swarm of negative reviews.
According to 9to5Google, the Robinhood app was sitting pretty at four stars, which then tumbled all the way down to one star. Apparently, Google caught wind of what was happening and ended up removing over 100,000 negative reviews, which brought the app back to its pre-WallStreetBets rating.
The Reddit group /r/WallStreetBets is largely responsible for the surge in trading for several companies, which included Nokia, AMC, Blackberry, and more. For instance, GameStop, which has been struggling to survive the impact of the pandemic, went from $19 at the beginning of the year to just less than $100 on January 26th, and since then rose to a whopping $467 at the height of the trading spree today. The move was to drive a loop that would see the stocks grow by squeezing out large investors who were short-selling these stocks, which forced them to buy and drove the stock higher.
This is unacceptable.
We now need to know more about @RobinhoodApp's decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit.
As a member of the Financial Services Cmte, I'd support a hearing if necessary. https://t.co/4QyrolgzytThis is unacceptable.
We now need to know more about @RobinhoodApp's decision to block retail investors from purchasing stock while hedge funds are freely able to trade the stock as they see fit.
As a member of the Financial Services Cmte, I'd support a hearing if necessary. https://t.co/4Qyrolgzyt— Alexandria Ocasio-Cortez (@AOC) January 28, 2021January 28, 2021
The move to halt trading was seen as market manipulation and a way to protect Wall Street hedge funds. Amid the backlash, Robinhood issued a statement about their decision:
Update, Feb 3 (9:00 pm ET) ― Robinhood is back down to one star, with no change in sight
Not long after Google came in and saved Robinhood's Play Store rating by purging nearly 100,000 negative reviews, the app has fallen back to a 1.1 rating. This time, a spokesperson told The Verge that the reviews do not break any of Google's rules:
Many of the 300,000+ reviews seem to focus on the quality of the app, commenting on frequent bugs, crashing, or confusing UI.
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Derrek is the managing editor of Android Central, helping to guide the site's editorial content and direction to reach and resonate with readers, old and new, who are just as passionate about tech as we are. He's been obsessed with mobile technology since he was 12, when he discovered the Nokia N90, and his love of flip phones and new form factors continues to this day. As a fitness enthusiast, he has always been curious about the intersection of tech and fitness. When he's not working, he's probably working out.