Billionaire tech investor Chamath Palihapitiya told CNBC on Wednesday that it closed his position on GameStop a day after joining the US video game retail frenzy

Social Capital CEO and former Facebook executive tweeted Tuesday that he had 125 worth of GameStop calling optionsBought $ 000 in February after asking his followers on Twitter what to buy Calls are derivatives that give the buyer the right to buy a share at a set price The trader makes money when the stock is above the strike price GameStop stock opened Wednesday at $ 354 a share, up more than $ 1 this year alone550% corresponds to

Palihapitiya said on CNBC’s “Fast Money: Halftime Report” on Wednesday, “I closed my position this morning and wanted to announce that I am taking all profits I made plus my original position”I’m going to be 500Take $ 000 and donate it “

Palihapitiya dismissed Wall Street criticism of individual investors joining forces on social media especially the Wallstreetbets Reddit Message Board and the short-squeezing of GameStop and a handful of other stocks like pros? as hypocritical He said that hedge funds are constantly trying to push stocks

It might be considered irresponsible to sell hedge funds 140% of GameStop stock, he said, “It doesn’t make sense to an ordinary person, But for a mathematician on Wall Street, this is the game that was played And this game has been undone “

GameStop shares rose earlier this month after the company announced that Chewy co-founder Ryan Cohen was joining its board of directors as buyers plowed into the inventory, shorts were sent to the mountains

A short squeeze occurs when a stock begins to rise in price with a large block of short sellers and short positions attempt to buy stocks at the currently higher prices to limit their losses, giving you the number of losses borrowed shares back and lose the price difference

Palihapitiya said the craze for GameStop stocks and some other stocks like AMC Entertainment was much more than just a trading story, arguing it was a backlash against the establishment

“Instead of having ‘feast of ideas’ or quiet whispered conversations between hedge funds in the Hamptons, these kids have the courage to do so transparently in a forum,” he said. “What it proves is that this retail phenomenon [ Investors] will stay here There are 27 million people in Wallstreetbets I think they are just as important as any hedge fund hedge or collection “

Palihapitiya said the best research on stocks by retail investors on Wallstreetbets was indistinguishable from the best research on Wall Street. “That edge is gone. Now suddenly retail can and need not be on the same footing be more of Wall Street’s “bag holder” “

Palihapitiya, a veteran venture capitalist, has recently successfully sponsored SPACs, blank check acquisition company One of its SPACs completed the merger with Virgin Galactic in October 2019, enabling Richard Branson’s space tourism company to become a publicly traded company, which it stock in 2021 more than 115% gain

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World News – CA – Chamath Palihapitiya closes GameStop position but defends investors’ right to influence stocks like professionals