Chamath Palihapitiya closes GameStop position, but defends investors’ right to sway stocks like pros

Billionaire tech investor Chamath Palihapitiya instructed CNBC Wednesday that he closed out his place in GameStop, at some point after becoming a member of the buying and selling frenzy across the videogame retailer. He additionally defended the ability of particular person traders to compete with Wall Street hedge funds.

The CEO of Social Capital and former Facebook government tweeted Tuesday that he purchased $125,000 price of February $115 GameStop name choices after asking his followers on Twitter what to purchase. Calls are derivatives that give the customer the right to buy a inventory at a set value. The dealer makes cash when the inventory rises above the strike value. GameStop inventory opened Wednesday at $354 per share, up greater than 1,550% this yr alone.

On CNBC's "Fast Money: Halftime Report" on Wednesday, Palihapitiya mentioned, "I ended up closing out my position this morning, and I wanted to announce that I'm taking all the profits that I made plus my original position — I'm going to take $500,000 and I'm going to donate it."

based mostly on web site supplies www.cnbc.com

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