Google has removed a wave of negative reviews of popular stock trading apps targeted by irked retail investors.
Platforms like Robinhood have collapsed in reviews after barring private traders from buying GameStop and AMC shares.
Users of the Reddit message board have been able to irritate the market by increasingly buying shares of select stocks and increasing their value, beating the established funds.
Why Did Google Delete The Reviews?
Many online retailers, feeling betrayed by Robinhood’s restrictions, are back with critical reviews of the app.
Google has removed tens of thousands of one-star ratings for the widely-used trading app – which had previously had a four-star average.
It claims to be taking action when it sees “fake reviews”, designed to deceive the product rating.
But more one-star ratings – the minimum possible – have continued to appear.
While Robinhood is stopping private users from buying more shares in the wake of increased investment by private traders, they are still available to large, professional guys elsewhere – leading to allegations that Robinhood protects large investors and controls the stock market.
Negative App Reviews
Robinhood said the restrictions were imposed for “risk management” reasons – not because they were told to by someone else to do so.
But as reported for the first time by 9to5Google, it prompted a co-ordinated campaign to hit the app with a barrage of one-star reviews.
The site reported that more than 100,000 negative reviews have yielded an average of four stars down to one.
Hours later, Google intervened to remove some 100,000 reviews, according to a review counter, restoring the app’s high rating.
Google’s rules are designed to protect the so-called “bombing review” – when reviewers meet to undermine app ratings, often due to external embarrassment or political disagreements.
Politicians React
While there have been calls on social media to review Robinhood negatively, many investors feel they have a legitimate complaint.
Some users of the Reddit WallStreetBets community, which is at the centre of the movement, believe they are taking a principled stance against hedge funds short-selling the stocks, hoping the company will fail.
The concern is also reflected by some major US politicians from both parties.
Democrat congresswoman Alexandria Ocasio-Cortez has said Congress should investigate Robinhood, calling the app’s decision to block small traders “unacceptable”.
His longtime political rival, Republican Ted Cruz, wrote on Twitter that he fully agreed, as did businessman Elon Musk.
A few hours later, Senator Sherrod Brown – who heads the Senate Banking Committee – said he planned to hold a hearing on the current state of the US stock market.
“People on Wall Street only care about the rules if they are the ones who are hurt,” he said.
