Chamath Palihapitiya on Wallstreetbets [audio]
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Re: Chamath Palihapitiya on Wallstreetbets [audio]
#2> Social Capital’s Chamath Palihapitiya jumped into the controversial name, saying in a Tuesday tweet that he bought GameStop call options betting the stock will go higher. His tweet seemed to intensify the rally in the previous session. The stock ended the day 92% higher at $147.98.
This is growing into a bigger problem. The thought of Twitter influencers (example with E. Musk / Etsy, yesterday [1]) heavily moving the value of stocks with a simple tweet is not really reassuring. The SEC should start investigating properly into it, from personal benefits to bigger company wide fraud, the regulators need to act before this is the new norm.
[1] https://edition.cnn.com/2021/01/26/investing/elon-musk-etsy-...
Re: Chamath Palihapitiya on Wallstreetbets [audio]
#3Here is a link to the audio podcast version of CNBC's "The Halftime" report. The link puts you 11 minutes into the show, where the interview with Chamath Palihapitiya begins.
Palihapitiya is a regular guest on this show, but was invited to appear today because of the extraordinary price action in the common stocks of GameStop ($GME) and AMC Entertainment ($AMC) resulting from short squeezes on each stock.
The remarkable thing about what Palihapitiya says is that he criticizes the institutional investment community which operates hedge funds who use excessive leverage to bet against small investors who-- in this case-- have bet that the stock is oversold.
At one point today 140% of the total number of shares of $GME stock had been shorted (meaning it was borrowed and sold to others, with the expectation that the investors who borrowed the stock would be able to buy the stock back as shares of $GME fell from inflated levels).
The interview makes extensive reference to the /r/wallstreetbets, https://www.reddit.com/r/wallstreetbets, subreddit and constructive analysis of the trade setups for these stocks.
According to a related CNBC article, https://www.cnbc.com/2021/01/27/chamath-palihapitiya-closes-...:
"Instead of having ‘idea dinners’ or quiet whispered conversations amongst hedge funds in the Hamptons these kids have the courage to do it transparently in a forum,” he said. “What it proves is this retail [investor] phenomenon is here to stay. There are 2.7 million people inside wallstreetbets. I think they are as important as any hedge or collection of hedge funds.”
"Palihapitiya claimed the best research on stocks done by retail investors inside wallstreetbets is nearly indistinguishable from the best research on Wall Street. “That edge is gone. Now all of a sudden, retail can be on the same footing and they don’t have to be the ‘bag-holder’ to Wall Street.”
I think a lot of people in this community will be interested in the idea that members of a subreddit can compete with institutional investors when the institutional investors' theses about a stock are either incorrect or so crowded that almost no one can make money trading with the institutional investors' strategy.
Re: Chamath Palihapitiya on Wallstreetbets [audio]
#4Here is a link to the audio podcast version of CNBC's "The Halftime" report. The link puts you 11 minutes into the show, where the interview with Chamath Palihapitiya begins. Palihapitiya is a regular guest on this show, but was invited to appear today because of the extraordinary price action in the common stocks of GameStop ($GME) and AMC Entertainment ($AMC) resulting from short squeezes on each stock. The remarka…
Best interview on boomer network ever. $AMC
Re: Chamath Palihapitiya on Wallstreetbets [audio]
#5Here is a link to the audio podcast version of CNBC's "The Halftime" report. The link puts you 11 minutes into the show, where the interview with Chamath Palihapitiya begins. Palihapitiya is a regular guest on this show, but was invited to appear today because of the extraordinary price action in the common stocks of GameStop ($GME) and AMC Entertainment ($AMC) resulting from short squeezes on each stock. The remarka…
Best interview on boomer network ever. $AMC
I thought it was incredible.
At one point Palihapitiya criticized CNBC host Scott Wopner for defending the way things have always been done on Wall Street at the expense of the Robinhood investment crowd. Palihapitiya argues that the Robinhood crowd, the /r/wallstreetbets subscribers, should win and the institutional investment community should lose when the "smart money" gets the trade this wrong.
I agree with him.
Re: Chamath Palihapitiya on Wallstreetbets [audio]
#6one of us!
Re: Chamath Palihapitiya on Wallstreetbets [audio]
#7I really thought this was a good articulation on Chamath’s part and would love HN to chime in with their perspective.
Edit: Couple of stand-out comments he made, paraphrasing:
‘The best wsb due diligence can be indistinguishable from top hedge fund due diligence, the funds don’t have an edge’.
Right. It doesn’t take a genius to know GameStop will have a hard time in a cd-less world and full digital download marketplace. It also doesn’t take a genius to know GameStop will not go to zero dollars (so don’t short to that level).
Love the defense of the intellect of the retail investor and a group that doesn’t need to be coddled, great defense against the patronizing and condescending suggestions.
Second edit: Jim Cramer recently peddled Raytheon’s earnings up. I’m not a genius but they got the earnings from laying off 16k people. Ok, how many quarters can you do that for? This is a play someone can consider (in either direction). We’ve got brains I think too.
Re: Chamath Palihapitiya on Wallstreetbets [audio]
#8I watched this after seeing it called "a must watch"
https://twitter.com/rsg/status/1354513379529027584
And definitely agree. The other famous Chamath video was also great, but this one was just fantastic. Spot on with what's going on.
I also took notes on how effective it can be to remain cool as a cucumber and calmly explain a fundamentally sound mathematical position against an emotional attack.
Note: I also wouldn't be surprised if some smart folks on Wall Street are now doing a clever counterattack where they are going long momentum and the short is a decoy, and then will pull the long profits and then also profit on the short. So I think smart Wall Street money will profit off this more than average retail, but no one will make out better than that reddit user who started the whole thing (forget their name)
Re: Chamath Palihapitiya on Wallstreetbets [audio]
#9I watched this after seeing it called "a must watch" https://twitter.com/rsg/status/1354513379529027584 And definitely agree. The other famous Chamath video was also great, but this one was just fantastic. Spot on with what's going on. I also took notes on how effective it can be to remain cool as a cucumber and calmly explain a fundamentally sound mathematical position against an emotional attack. Note: I also would…
Yeah, felt inspired and compelled enough to get some discussion on this going here.
Re: Chamath Palihapitiya on Wallstreetbets [audio]
#10I really thought this was a good articulation on Chamath’s part and would love HN to chime in with their perspective. Edit: Couple of stand-out comments he made, paraphrasing: ‘The best wsb due diligence can be indistinguishable from top hedge fund due diligence, the funds don’t have an edge’. Right. It doesn’t take a genius to know GameStop will have a hard time in a cd-less world and full digital download marketpla…
He is exactly right. The powers that be (dark money) have long sought to remain in control of their subjects. Just because we don't have monarchies doesn't mean we don't have a few elite who few themselves as rightful directors and owners other all things on Earth.
They have manipulated markets through various institutions and making knowledge so hard to come by without going into massive debt in order to maintain their elevated status.
In their arrogance though, they thought they could reverse the trend of the democratization of their power to the masses, and have literally tried to move heaven and earth in order to remain in power and reverse the trend.
My curious position is I think they are realizing that the trend is irreversible, that power eventually will always diffuse to the masses eventually as no system is perfect, there will always be leaky abstractions, and I have no doubt they have a nuclear option in their back pockets to try and quell the massive shift of power that seems inevitable at this point. Question is, what is that nuclear option?