Kanye West + The Gap Deal Leaves Robinhood Traders Hanging I Seattle Real Estate Podcast

Robinhood traders may be left holding the bag of unwanted Gap stock as Kanye West threatens to back out of their deal.

GAP stock surged 40% when news broke of professional hyphen Kanye West‘s exclusive 10-year deal with the retail fashion giant last month, a story that attracted more than 84,000 Robinhood traders to add $GPS to their portfolios.

As hype surrounding the partnership cooled, GAP stock would fall more than 20% from its $14.44 peak. Now, more than a month later, West’s relationship with GAP has again influenced the company’s stock price; it sank 6% on Monday morning after West threatened to walk away from the deal during an appearance at an event on Sunday night.

This put GAP stock down more than 26% for the year-to-date.

But while West apparent influence over GAP’s share price might concern potential investors, it’s the tens of thousands of Robinhood traders who are at immediate risk of being stuck “holding the bag” — a term for those unfortunate souls that stubbornly hold onto an investment that depreciates massively in value.

To get a better idea of how many Robinhood traders were attracted by West’s 10-year Yeezy deal with GAP, Hard Fork analyzed the company’s stock movements against the popularity data provided by Robintrack.

Updated hourly, Robintrack provides the number of Robinhood users holding a stock at any point in time. While it doesn’t tell us how many shares a user owns, or their trade position, it does provide an idea of the general sentiment of the Robinhood userbase overall.

David Canellis. (2020, July 22). 84K Robinhood traders at risk of ‘bagholding’ after Kanye threatens GAP. Retrieved from https://thenextweb.com/hardfork/2020/07/22/kanye-west-gap-stock-robinhood-traders-bought-after-deal-could-become-bagholders/

#kanyewest #robinhood

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