Leon Cooperman advised 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 “Fast Money: 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 came under pressure as numerous retail brokerages placed limits on trades.
“GameStop is just not 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 “buyers” do not personal GameStop — solely “speculators” do.
Simply final week, Cooperman had warned about “euphoria” in parts of the stock market. GameStop shares had been buying and selling beneath $50 on the day of Cooperman’s remarks.
“I have been by means of cycles like this prior to now. That is excessive, extra so, however this too shall cross,” the hedge fund pioneer stated Thursday. “On the finish of the day, the inventory market displays financial progress or the shortage thereof.” He added, “Water seeks its personal degree.”