Are share-trading apps a safe way to play the markets?

After investors caused havoc on the markets last week in a battle over the shares of a video-game chain, we explore the promise and pitfalls of the apps they used

A year ago shares in struggling US video game store GameStop were worth just $3.25 a pop, yet at the end of last month they had reached $482. This stupendous surge was created by thousands of armchair traders, organising themselves on internet forums such as Reddit, who were attempting to outwit hedge funds who had placed massive bets on the chain’s decline in a process known as short-selling.

This has resulted in billion-dollar losses for some hedge funds, and big profits for traders who cashed out before the stock fell back to less than $100. Many of these speculators were using a new generation of share-trading apps, such as eToro, Robinhood and Trading 212. Have these services tipped the scales of financial power in favour of the little guy? Here we answer some key questions …

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Is big tech now just too big to stomach?

The Covid crisis has turbo-charged profits and share prices. But are the big six now too powerful for regulators to ignore?

The coronavirus pandemic has wrought economic disruption on a global scale, but one sector has marched on throughout the chaos: big tech.

Further evidence of the industry’s relentless progress has come in recent weeks with the news that Apple and Amazon both raked in sales of $100bn (£72bn) over the past three months – 25% more than Tesco brings in over a full year.

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‘It let white supremacists organize’: the toxic legacy of Facebook’s Groups

Facebook has said it will no longer algorithmically recommend political groups to users, but experts warn that isn’t enough

Mark Zuckerberg, the Facebook CEO, announced last week the platform will no longer algorithmically recommend political groups to users in an attempt to “turn down the temperature” on online divisiveness.

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Are we all living in the Matrix? Behind a documentary on simulation theory

In A Glitch in the Matrix, film-maker Rodney Acher speaks to people who are convinced that the world we’re living in isn’t real

Rodney Ascher’s new documentary A Glitch in the Matrix opens, as so many nonfiction films do, with an interview subject getting settled in their camera set-up. In this instance, a guy named Paul Gude is Skyping in from a setting familiar to anyone who’s spent the last year trapped in video-chats. He’s sitting in what appears to be a bedroom made to double as an office, the fisheyed webcam lens catching some dirty laundry, a shelf full of books and decorative toys, some homemade-looking art on the walls. But the eye is instantly drawn to Gude himself, a hyperreal computer-generated creature with shiny copper skin, warrior armor, a scar stretching from his forehead to his cheek, and a mane of shifting polygons in jewel-tone ruby red making his head look like a 20-sided die. He could be a distant cousin of Lion-O from the Thundercats, and he’s here to tell us that everything we know may be a lie.

Related: A Glitch in the Matrix review – deep-dive into simulation theory

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The unbearable banality of Jeff Bezos

The Amazon founder’s relentless quest for ‘customer ecstasy’ made him one of the world’s richest people – now he’s looking to the unlimited resources of space. Is he the genius our age of consumerism deserves?

The first thing I ever bought on Amazon was an edutainment DVD for babies. I don’t recall making the purchase, but the data is unequivocal on this point: on 14 November 2004, I bought Baby Einstein: Baby Noah – Animal Expedition for the sum of £7.85. My nearest guess is that I got it as a Christmas present for my nephew, who would at that point have been one year old, and at the very peak of his interest in finger-puppet animals who cavort to xylophone arrangements of Beethoven. This was swiftly followed by three more DVD purchases I have no memory of making. Strangely, I bought nothing at all from Amazon the following year, and then, in 2006, I embarked on a PhD and started ramping up my acquisition of the sort of books that were not easily to be found in brick-and-mortar establishments. Dry treatises on psychoanalysis. Obscure narrative theory texts. The occasional poetry collection. Everything ever published by the American novelist Nicholson Baker.

I know these things because I recently spent a desultory morning clicking through all 16 years of my Amazon purchase history. Seeing all those hundreds of items bought and delivered, many of them long since forgotten, was a vaguely melancholy experience. I experienced an estranged recognition, as if reading an avant-garde biography of myself, ghost-written by an algorithm. From the bare facts of the things I once bought, I began to reconstruct where I was in life, and what I was doing at the time, and what I was (or wanted to be) interested in. And yet an essential mystery endured. What kind of person purchases within the space of a few days, as I did in August of 2012, a Le Creuset non-stick crepe pan, three blue and white herringbone tea-towels, and a 700-odd page biography of the Marxist philosopher Theodor Adorno? (The tea-towels are still in use, and so is the crepe pan, while the 700-plus page Adorno biography remains, inevitably, unread.) Perhaps the answer is as simple as: a person with an Amazon account.

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Bezos leaves Amazon in its prime – keeping it that way is the task

Analysis: Running the online retailer should be a dream job, but where and how to grow will challenge Andy Jassy

A pain-free departure of a visionary founder is a difficult trick to pull off for any business. The stakes are even higher for a company the size of Amazon, as Jeff Bezos steps back from his day-to-day management role.

The decision by Bezos, 57, to quit as chief executive later this year took analysts by surprise, but the first step has already gone smoothly, with Andy Jassy appointed as his successor without any public power struggle.

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Up in flames: SpaceX Starship test flight ends in fiery crash, again

  • Futuristic rocket explodes on landing after test in Texas
  • Elon Musk developing Starship to carry people to Mars

SpaceX’s second full test flight of its futuristic, bullet-shaped Starship ended in another fiery crash landing on Tuesday.

Elon Musk’s company launched its latest Starship prototype from the south-eastern tip of Texas, two months after the previous test ended in an equally explosive belly flop.

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Jeff Bezos to resign as chief executive of Amazon

Bezos, who founded the company in 1994, will step down after company recorded $100bn in sales for last three months of 2020

Jeff Bezos, billionaire founder of Amazon, will step down as chief executive, the company announced on Tuesday.

Related: Biden pledges to 'undo moral shame' of Trump era with new orders on immigration – live

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GameStop shares plunge as traders dump stock

Reddit-inspired surge in stocks such as struggling video games store and AMC dive as hedge funds close positions

Shares in GameStop plunged by 65% in early trading on Wall Street as the trading mania sparked by small investors, that sent its stock surging and cost hedge funds billions of dollars, lost momentum.

The struggling Texas-based video game store chain has been the focal point of a battle by small traders, using forums such as Reddit, to punish Wall Street hedge funds that have bet on certain stocks falling in value. GameStop shares hit a high of $482 last Thursday but slumped to $80 shortly after the market opened. They recovered to $117 by mid-session, but closed down 60% at $90.

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The tyranny of passwords – is it time for a rethink?

They are elusive, infuriating gatekeepers that rule our lives. Easy to crack and hard to remember, forgetting them is pricey – it cost Stefan Thomas £160m in lost bitcoin

Modern life is the act of entering the third character of a long-dead family pet into an online form three times a week, getting it wrong, and speaking to a call-centre worker in India whose real name is almost certainly not Kenny, ad infinitum, until you die. Our ancestors lived short, brutish lives and died in childbirth, or were gored to death on the battlefield, but at least they didn’t have passwords, and that’s something.

The tyranny of passwords; it colonises modern life. These petty dictators deny us access to our bank accounts, our baby photos, our phone contracts, even our heating. They reproduce as endlessly as bacteria, and yet, like Tupperware lids, you can never find the one you need. They are our boyfriends, our girlfriends, our children, our pets. A talented and motivated adversary could probably work yours out in the time it has taken you to read this paragraph.

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Mighty Amazon looks all but unassailable as Covid continues

Jeff Bezos’s company is set for sales topping $100bn last quarter, and while rivals are nibbling, its position looks secure

The earliest references to the “one-stop shop” emerged during the first decades of 20th century as the fast-growing US economy spurred rapid retail innovation. A single location for various products provides obvious benefits: removing the hassle of travelling around town to visit different stores.

Jeff Bezos redefined that logic for the internet age, making Amazon a dominant (and perhaps ambivalent) force first in selling books, and then in pretty much everything else. Before 2020 Amazon was a phenomenon, but the coronavirus pandemic has made it all but ubiquitous.

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WallStreetBets’ founder on GameStop: ‘I didn’t think it would go this far’

The Reddit forum is at the center of a war between Wall Street and an army of small investors over the store – and Jaime Rogozinski is still getting to grips with it

Jaime Rogozinski always knew WallStreetBets, the Reddit forum he founded, was part of something big – but even he wasn’t prepared for quite how big.

Related: GameStop: how Reddit amateurs took aim at Wall Street’s short-sellers

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Facebook board set to rule on Trump ban reverses four content removal cases

Cases included content on Covid misinformation and hate speech, and panel will rule soon on the decision to suspend Trump

Facebook’s oversight board, the “supreme court” set up by the company to relieve Mark Zuckerberg of having the final say over moderation, has issued its first decisions, overturning the social network’s choices on four of the five first cases it has heard.

The cases, all of which were appeals to reinstate content taken down by Facebook, covered a wide range of topics, from female nudity, to Russian-language ethnic slurs, through islamophobia and Covid misinformation. The board’s decisions are binding under the agreement between Facebook and its quasi-independent overseer. Facebook now has seven days to restore content in the four cases where the board deemed it necessary.

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GameStop shares plunge after ban by Robinhood app

Meteoric rise fizzles out after small investors are barred from trading in groups that had soared in value

Small investors mounting an assault on Wall Street speculators suffered a setback on Thursday as trading platforms banned them from buying more shares in GameStop, spawning conspiracy theories, political intervention and at least one lawsuit.

Amateur trading app Robinhood stopped users from investing any further in GameStop – a US chain of video games stores – and seven other companies on Thursday, after an extraordinary rise in their value, spurred by users of the chat forum website Reddit, that cost some hedge funds billions of dollars.

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GameStop: how Reddit amateurs took aim at Wall Street’s short-sellers

Analysis: Understanding short-selling enabled amateur traders to beat hedge funds at their own game

The co-ordinated effort by users of the online forum Reddit to drive up the share price of GameStop and other companies is designed to turn the screw on short-sellers.

To the layman, the dynamics at play here can seem dizzyingly labyrinthine.

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How GameStop found itself at the center of a groundbreaking battle between Wall Street and small investors

The video game retailer has become one of the hottest stocks this year in a tale that illustrates the changing face of investing

The coronavirus pandemic hit GameStop hard. Like many retailers, already suffering from the shift to online sales, the video games chain is losing money and plans to close 450 stores this year. And yet, surprisingly, GameStop has become one the hottest stocks of the year.

The 37-year-old chain store group is now the focus of a David-and-Goliath battle between an army of small investors and Wall Street that shows no signs of abating and has highlighted some fundamental shifts in investing.

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Grindr fined £8.6m in Norway over sharing personal information

Fine from by the Norwegian Data Protection Authority is 10% of Grindr’s global annual revenue

Grindr has been fined 100m krone (£8.6m) by the Norwegian Data Protection Authority after an investigation revealed the dating app was sharing deeply personal information with advertisers, including location, sexual orientation and mental health details.

The fine is 10% of Grindr’s global annual revenue and is particularly high because of the personal nature of the information shared.

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WhatsApp loses millions of users after terms update

Poorly-executed change to terms of service sends messaging app’s subscribers flocking to competitors

A poorly explained update to its terms of service has pushed WhatsApp users to adopt alternative services such as Signal and Telegram in their millions.

The exodus was so large that WhatsApp has been forced to delay the implementation of the new terms, which had been slated for 8 February, and run a damage limitation campaign to explain to users the changes they were making.

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‘Inevitable’ Google and Facebook will pay for Australian news, treasurer says

Josh Frydenberg says tech companies’ threats to pull services out of Australia did them a ‘big disservice’

Josh Frydenberg has warned the internet giants it is “inevitable” they will pay for news content and their threats to shut down core functions in Australia do them a “big disservice”.

At a doorstop on Sunday, the treasurer said the Morrison’s government intended to become a “world leader” in regulating social media and search companies, who he accused of shifting the goalposts in their opposition to the proposed bargaining code of conduct.

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