This is a Squawk Box squabble you don’t want to miss.
In an interview on CNBC, Kevin O’Leary debated with Massachusetts Secretary of State William Galvin over GameStop’s volatility and massive retail investor interest. O’Leary argued that all investors should be allowed to speculate freely — regardless of whether hedge funds and other short sellers get slammed.
I think this is fantastic what’s going on. Leave it alone. It’s a great thing that’s happening here.
When challenged on how he feels about new, retail investors who may be losing money on the first trades, O’Leary reminds Galvin that every investor loses.
They’re learning about the risks of the market. … We forgot to educate them in high school, so let them learn in the real world, which is even better.
While the Secretary of State is repeating his point about the lack of certainty caused by “wild speculation based on nothing,” O’Leary seems to pull the GameStop investment thesis out of thin-air.
How do you know that GameStop executives aren’t going to take advantage of the situation and build a brand and make a pivot just like Netflix did when they were shipping out CDs in the mail? You don’t know.
The Secretary of State demonstrates a complete lack of knowledge over GameStop fundamentals as he states that there is no evidence to support that.
Because they’ve shown no evidence of that… they haven’t even raised any capital.
No evidence at all? Did he bother to check any news regarding GameStop before this interview? Of course not.
It is comical that these are the people in power.