While the rising stock of GameStop is still attracting traders, billionaire and hedge fund manager Leon Cooperman calls it a ‘Robinhood market’.Cooperman is an American billionaire and the founder of Omega Advisors. His recent comments on GameStop have raised a lot of criticisms. In a recent interview on CNBC, Cooperman has made some disdainful remarks on the present stock market of GameStop. As the Gamestop stock is considered by many as the populist war against the Wall Street billionaires, Cooperman’s comments added more provocation to criticisms.
Leon Cooperman’s Remarks on GameStop Stock
Leon Cooperman said that GameStop is simply attracting unprofessional traders. He further criticized the app market as a losers’ game that is only traded by inexperienced people. According to him, people are going for the market because they want to trade for no interest rates and commissions. Cooperman added that the GameStop stock is like an inappropriate attack on the market of wealthy people. While asked about whether the app market can bring competition with Wall Street, he rejected the idea completely. Cooperman said that he does not consider the rise of GameStop as an uprising movement against the wealthy.
He suggested that the investors who are making a deal in GameStop stock are just foolish enough to find an easy way of getting rich. According to Cooperman, the attraction of the investors towards AMC, GameStop, or Blackberry is risky. Michael Pachter, a Wedbush Securities analyst recently commented that GameStop stock is a pyramid scheme. Pyramid schemes are preferred by newcomers who think that there will be the presence of other new incomers to support them. Regarding the matter, Cooperman said that the stock of these ‘Robinhood markets’ is surely going to be a failure.
Leon Cooperman’s comments added sparks to controversies as the phenomenon of GameStock is seen as a war against Wall Street. In his own defense, Cooperman stated that he is a believer in equal opportunity.
