Mark Cuban joins CNBC’s broadcast to give his insightful thoughts on the ongoing r/wallstreetbets vs Wall Street war over Gamestop, AMC, and other stocks.
For two weeks, the most talked about story in finance has been the ongoing battle between Wall Street, hedge funds, and a subreddit r/WallstreetBets. To make a long story a little shorter: Redditors are banning together to save companies like Gamestop and AMC from being short sold by hedge funds, driving them out of business. They came together on the forum, put together a plan, went into action, and saw results rather quickly. The results not only exposed hedge funds, costing them billions of dollars, but also forced apps and services like Robinhood, WeBull and others to be exposed for having liquidity issues to cover the intense trading that was happening.
Robinhood wasn’t upfront about their liquidity issue, causing many to think they sided with their partners on Wall Street when trading was halted. Now, everyone who is familiar with money and stocks is coming together to essentially urge the Redditors to keep going, because permanent change isn’t that far from reach.
Who better to speak about the cause than Dallas Mavericks owner and everyone’s favorite Shark Tank host, Mark Cuban. Mark stopped by CNBC to break down his thoughts on the trading frenzy and give tips to the retail traders.