Leon Cooperman instructed CNBC on Thursday he believes the Reddit-fueled buying and selling frenzy involving GameStop shares will finish poorly. No
Leon Cooperman instructed CNBC on Thursday he believes the Reddit-fueled buying and selling frenzy involving GameStop shares will finish poorly. Nonetheless, the billionaire investor stated he wasn’t faulting the individuals who kicked off the epic quick squeeze, which despatched the inventory to dizzying heights in latest days.
“I am not damning them. I am simply saying from my expertise, it will finish in tears,” Cooperman stated on “Quick Cash: Halftime Report,” as shares of the beleaguered online game retailer tumbled about 25%. Earlier within the session, GameStop’s inventory touched an all-time excessive of $483 however got here underneath stress as quite a few retail brokerages positioned limits on trades.
“GameStop shouldn’t be price $500, not price $400, not price $300, not price $200, not even price $100, not even price $50,” stated Cooperman, chairman of the Omega Household Workplace. He added that “traders” do not personal GameStop — solely “speculators” do.
Simply final week, Cooperman had warned about “euphoria” in components of the inventory market. GameStop shares have been buying and selling underneath $50 on the day of Cooperman’s remarks.
“I have been via cycles like this up to now. That is excessive, extra so, however this too shall go,” the hedge fund pioneer stated Thursday. “On the finish of the day, the inventory market displays financial progress or the dearth thereof.” He added, “Water seeks its personal stage.”