Leon Cooperman advised CNBC on Thursday he believes the Reddit-fueled buying and selling frenzy involving GameStop shares will finish poorly. However, the billionaire investor mentioned he wasn't faulting the individuals who kicked off the epic brief squeeze, which despatched the inventory to dizzying heights in latest days.
"I'm not damning them. I'm just saying from my experience, this will end in tears," Cooperman mentioned on "Fast Money: Halftime Report," as shares of the beleaguered online game retailer tumbled about 25%. Earlier in the session, GameStop's inventory touched an all-time excessive of $483 but got here below strain as quite a few retail brokerages positioned limits on trades.
"GameStop is not worth $500, not worth $400, not worth $300, not worth $200, not even worth $100, not even worth $50," mentioned Cooperman, chairman of the Omega Family Office. He added that "investors" don't personal GameStop — solely "speculators" do.
Just final week, Cooperman had warned about "euphoria" in components of the inventory market. GameStop shares had been buying and selling below $50 on the day of Cooperman's remarks.
"I've been through cycles like this in the past. This is extreme, more so, but this too shall pass," the hedge fund pioneer mentioned Thursday. "At the end of the day, the stock market reflects economic progress or the lack thereof." He added, "Water seeks its own level."
based mostly on web site supplies www.cnbc.com