DOWN, WHAT 50 FOR THE NASDAQ.
NOW LOOK AT WHAT WE ARE CALLING
SHORT SQUEEZE STOCKS.
THEY ARE GOING STRAIGHT UP
ESPECIALLY GAMESTOP, NOW UP 75%.
THAT’S VOLATILITY.
BED, BATH&BEYOND.
LOOK AT THEM GO.
HERE IS BARSTOOL’S DAVE PORTNOY.
DAVE YOU CALL ROBINHOOD THE
BIGGEST FRAUD OF THEM ALL.
PUT THEM IN PRISON, YOU SAY.
MAKE YOUR CASE, GO AHEAD.
>> WELL, THEY INTENTIONALLY
CRATERED A BUNCH OF STOCKS, A
LOT OF THE ONES THAT YOU
MENTIONED BY NOT LETTING PEOPLE
BUY, ONLY SELLING IT.
THERE WAS ONLY ONE OUTCOME.
THEY BASICALLY STOLE MONEY FROM
THEIR OWN CLIENTS.
THEY KNEW THAT WAS GOING TO
HAPPEN TO HELP HEDGE FUNDS
BASICALLY COVER.
IS THERE PROOF OF THAT?
IF THEY DO INVESTIGATION RIGHT,
I’M SURE THERE WILL BE.
IT’S ONE TO SAY THAT YOU’RE
WORRIED AND YOU FREEZE THE
MARKET AND YOU CAN’T BUY OR SELL
AND THE PEOPLE LIQUIDATE, FINE.
BUT TO CRATER A STOCK AT THE
EXPENSE OF YOUR CUSTOMERS,
THAT’S CRIMINAL IN MY MIND.
FLAT-OUT CRIMINAL.
STUART: OKAY, LET ME PUT THE
OTHER SIDE OF THE ARGUMENT
BECAUSE THERE’S ANOTHER SIDE, I
THINK.
IF ROBINHOOD HAD NOT RESTRICTED
TRADING, THEY DIDN’T HAVE ENOUGH
MONEY FOR THE CLEARING HOUSES TO
COMPLETE THE TRADES, IF YOU
FAILED ON A TRADE, YOU’VE GOT A
CASCADE OF FAILINGS ALL THE WAY
DOWN THE LINE.
THAT’S A FINANCIAL CRISIS.
I PUT IT TO YOU, THAT ROBINHOOD
HAD TO DO WHAT IT DID WHEN IT
DID IT AND BY DOING THAT THEY
WERE REPRESENTING THEIR OWN BEST
INTEREST AND TO SOME DEGREE THE
BEST INTEREST OF THEIR OWN INVESTORS.
>> SO BRAD WENT ON CNBC AND
ASKED IF THERE WERE LIQUIDITY
ISSUES AND HE SAID NO.
>> STUART: AT THE TIME PUTTING
RESTRICTIONS ON?
>> DID YOU PUT RESTRICTIONS AND
CHANGE THE RULES BECAUSE
ROBINHOOD HAD LIQUIDITY ISSUE
AND HE SAID NO.
STUART: HE SAYS WHAT YOU’RE
SAYING, VLAD SAYS WHAT YOU’RE
SAYING IS JUST A CONSPIRACY
THEORY.
>> WELL, HOW MANY CRIMINALS AND
CROOKS HAVE RAISED THEIR HAND
AND SAID, WE COMMITTED A CRIME
AND DID SOMETHING.
IN THE HISTORY OF CRIMES, NONE,
UNTIL THEY GET CAUGHT.
WHAT IS IT?
HIS ANSWER WAS HE WAS BASICALLY
PROTECTING HIS OWN CLIENTS NOT
BECAUSE OF LIQUIDITY ISSUES.
THAT’S FULL OF CRAP.
STUART: YEAH.
OKAY.
LET’S MOVE ON.
TELL ME MORE ABOUT YOUR FEUD
WITH STEVE COHEN.
>> IF YOU LOOK AT WHAT HAPPENED,
CAPITAL BAILED OUT BY STEVE
COHEN AND OLD BUDDIES, TRADERS,
THEY WORK TOGETHER.
STEVE COHEN HAS A HISTORY OF
INSIDER TRADING, ONE OF THE
GREAT INSIDER TRADING SCANDALS
IN THE HISTORY OF THE STOCK
MARKET.
2-YEAR SUSPENSION AND SUDDENLY
HE’S RIGHT IN THE MIDDLE, HIS
BUDDIES WITH WHAT WENT ON
YESTERDAY.
AGAIN, I DON’T HAVE THE PROOF.
HE UNEQUIVOCALLY DENIED THAT HE
HAD ANY INVOLVEMENT ON WHAT
HAPPENED YESTERDAY.
I WOULD WEIGHER, IF YOU FORCED
IT OUT AND IF IF YOU HAD SUBPOEN
PHONE CONVERSATIONS, I THINK YOU
WOULD FIND OUT HE WAS INVOLVED.
AGAIN, IT’S NOT MAKING GIANT
LEAPS OF LOGIC HERE.
I’M LOOKING AT FACTS THAT
ANYBODY RATIONALLY CAN LOOK AT
THEM COME UP WITH ANY OTHER
CONCLUSION.
GENERALLY WHERE THERE’S SMOKE
THERE’S FIRE AND THIS WAS A
5-ALARM BLAZE.
STUART: OKAY.
AT THE MOMENT THE PEOPLE GOING
SHORT ON GAMESTOP IS ACTUALLY
GOING UP.
SHORT POSITIONS ARE EXPANDING ON
GAMESTOP AND AT THE SAME TIME
THE STOCK PRICE IS GOING UP.
THAT IMPLIES WE’VE GOT ANOTHER
SHORT SQUEEZE COMING JUST AROUND
THE CORNER, IS THAT THE WAY YOU
SEE IT?
>> I MEAN, I GUESS.
LISTEN, I’D SHORT THE STOCK TOO
IF I KNEW I WAS WRONG, THEY WERE
GOING TO PRESS THE STOP MONEY
AND GIVE ME MY MONEY BACK, WHAT
DO YOU HAVE TO LOSE?
STUART: WHAT ARE YOU GOING TO DO
ABOUT IT NOW?
ARE YOU JOINING THE LAWSUIT
AGAINST ROBINHOOD?
>> I HAVEN’T THOUGHT ABOUT IT.
I STILL HAVE -- WELL, I THINK
ROBINHOOD.
THAT’S PART OF THE ISSUE HERE.
I WILL GIVE SOME CREDIT, I DON’T
THINK HE’S STUPID ENOUGH TO JUST
CREATE PAUSE BUTTON AND
BASICALLY CREATE CHAOS THAT HE
HAS.
IN HIS ENTIRE MESSAGE, IN HIS
ENTIRE COMPANY, ROBINHOOD STEAL
FROM THE RICH AND GIVE TO THE
POOR, THEY DID THE OPPOSITE.
HE HAD TO KNOW THIS WAS COMING.
I THINK HE KNOWS CLASS ACTION
LAWSUIT, WHATEVER, THAT HE WAS
GOING TO BASICALLY TANK THIS
COMPANY THAT HE BUILT ON THE
EXACT OPPOSITE MESSAGING OF WHAT
HE DID YESTERDAY AND THEY’RE
WILLING TO FACE THE CLASS ACTION
LAWSUIT.
THEY ARE WILLING TO PAY FINES
JUST LIKE STEVE COHEN PAID A
BILLION DOLLAR FINE WHEN HE GOT
IN TROUBLE.
IT WAS EITHER PAY FINES OR LOSE YOUR BILLION DOLLAR HEDGE FUNDS
YOUR BILLION DOLLAR HEDGE FUNDS
AND ROBINHOOD DUPED THE IPO.
THEY KNEW THIS WAS COMING.
NOBODY IS THAT STUPID TO BE
LIKE, I’M GOING TO BASICALLY
SPIT IN THE FACE OF MY ENTIRE
CLIENT BASE AND THEY’LL BE OKAY
WITH IT.
STUART: NOW, BIG PICTURE FOR A
SECOND.
WHAT WE ARE SEEING HERE
EMERGENCE OF A BRAND-NEW CLASS
OF INVESTOR, TRADER I SHOULD SAY
AND THAT’S MILLENNIALS WITH A
SMARTPHONE AND ACCESS TO SOCIAL
NETWORKS.
YOU’RE RIGHT IN THE MIDDLE OF
THIS.
ARE YOU LEADING THIS MILLENNIAL
CHARGE INTO WALL STREET?
>> NO, I’M NOT LEADING IT.
I’VE BEEN DOING IT FOR A WHILE.
THE WALL STREET BETS AND READ
IT.
I’VE BEEN SAYING IT SINCE MARCH.
ADAPT OR DIE.
THE OLD GUARD, THAT’S THEIR
FAULT.
LISTEN, THERE’S ALWAYS MARKET
CONDITIONS THAT AFFECT THE STOCK
MARKET.
IF THE OLD GUARD DON’T WANT TO
ACCEPT THE INTERNET, REDDIT,
WALL STREET BET, MYSELF, THEY
WILL CONTINUE TO LOSE AND MAYBE
IN SOME CASES CHEAT BUT THIS IS
SOMETHING -- WHEN PEOPLE
INVESTED IN GAMESTOP AND AMC AND
NOKIA, THEY DID IT BECAUSE THEY
TOOK INTO ACCOUNT WHAT WAS
HAPPENING SOCIALLY ON THE
PLATFORMS AND THE MOMENTUM AND
YOU CAN SAY WHATEVER YOU WANT.
I KEEP HEARING THE ONLY THING
THAT SHOULD MATTER IS
FUNDAMENTALS.
YOU CAN SCREAM THAT UNTIL YOU’RE
BLUE IN THE FACE, PUBLIC OPINION
-- ELON MUSK, CELEBRITY CEO THAT
HAS INFLUENCE, THESE ARE ALL
THINGS THAT SHOULD AFFECT
INVESTMENT DECISION AND IT’S
UNFAIR TO SAY, WELL, THE REDDIT
GUYS AND THE WALL STREET GUYS,
WE CAN’T LET THEM DO THAT.
IT’S A NEW WAY.
THE INTERNET IS NEW AND SHAPING
THE FUTURE OF HOW WALL STREET
WORKS.
STUART: IS IT MANIPULATIVE AT
ALL, HUNDREDS OF THOUSANDS, DAY
TRADERS, GUYS WITH CELL PHONES
AND ACCESS TO THE INTERNET, IF
THEY ALL GET TOGETHER, IF THEY
COLLUDE AND GANG UP ON A
PARTICULAR STOCK OR A PARTICULAR
COMPANY, IS THAT -- IS THAT
UNETHICAL?
IS IT WRONG?
IS IT MANIPULATIVE?
BECAUSE THAT’S WHAT’S HAPPENED.
>> DEFINITELY MANIPULATES THE
STOCK PRICE.
I FEEL LIKE THAT’S A FAIR
DISCUSSION IF YOU WANT TO
IMPLEMENT RULES IN THE FUTURE
AND EVERYBODY UNDERSTANDS THE
RULES.
I DON’T THINK IT IS, AND I THINK
IT’S ONE OF THOSE QUESTIONS THAT
THE TRADITIONAL GUYS HAVE BEEN
DOING FOREVER.
YOU’RE TELLING ME THAT ANALYSTS
DON’T MANIPULATE STOCK PRICES
AND DRIVE UPS AND DOWN TO CREATE
BUYING OPPORTUNITIES AND SELLING
OPPORTUNITIES.
IS THIS -- I’M NOT SAYING WHAT
THE NEW GUYS ARE DOING IS GATE.
LET’S NOT PRETEND THE OLD GUYS
BUILD YACHTS AND MANSIONS, OF
COURSE, THEY ARE.
THEY DON’T LIKE THE OTHER GUY DO
IT.
IF YOU WANT TO CHANGE THE RULES,
FINE DO THAT BUT YOU CAN’T DO
THAT OVERNIGHT WITHOUT SELLING
ANYBODY.
STUART: OKAY, ARE YOU INVOLVED
WITH THIS?
ARE YOU TREATING ANY OF THE
STOCKS?
>> OF COURSE, COME ON, I DON’T
MISS A 50-YEAR STORM.
I JUMP IN ON AMC, NOKIA.
I GOT IT AFTER, 2 DAYS AFTER.
THE FIRST DAY I WENT IN I GOT
MURDERED.
I CAME IN TODAY BECAUSE THEY ARE
COMING.
I BELIEVE IN THE POWER OF THE
INTERNET.
I BELIEVE IN THE POWER OF
POPULAR OPINION AND ALL THAT.
SO I BELIEVE THAT THEY WILL
CONTINUE TO RISE THE WAVE.
I DIDN’T KNOW THAT YOU COULD
JUST DO WHAT THEY DID WHICH IS
SAY, YOU CAN ONLY SELL AND NOT
BUY.
OBVIOUSLY I DIDN’T SEE THAT
COMING, BUT, YEAH, I JUMPED IN
ON IT.
STUART: HOW ARE YOU DOING AT
THIS MOMENT, HOW ARE YOU DOING?
>> SO YESTERDAY BY THE END OF IT
I PROBABLY HAD LOST ABOUT
700,000 ON ALL THE STOCKS AND
I’M PROBABLY DOWN 200,000 RIGHT
NOW BECAUSE OF THE CLAWBACK.
STUART: ARE YOU GOING TO GET
OUT?
>> NO.
NO.
NOT YET.
YESTERDAY I SAID IF IT TANKED I
WAS WILLING TO -- I PUT IN
2 MILLION.
I WAS WILLING TO LOSE IT AND PUT
IT ON A POSTER BOARD IN MY
OFFICE FOR MOTIVATION TO BRING
ROBINHOOD TO ITS KNEES.
HATE INSPIRES ME AND WHEN I
THINK I’VE BEEN WRONG ALONG WITH
OTHER TRADERS, THAT’S GOOD
MOTIVATION.
CHEAP PRICE TAG TO MOTIVATE ME
FOR THE NEXT DECADE.
STUART: I EXPECT YOU TO BE
BANNED FROM FACEBOOK IF HATE
MOTIVATES YOU, DAVE.
>> LISTEN, CERTAIN PLATFORMS AND
HATE IN THE SENSE OF I’M GOING
TO MAKE SURE THAT I GET A
REVENGE ONE WAY OR THE OTHER,
METAPHORICALLY SPEAKING AND
FINANCIALLY SPEAKING BUT NOT
LIKE -- OH, WHO KNOWS?
STUART, WHO KNOWS, YOU CAN GET
BANNED FOR ANYTHING AT ANY TIME.
THIS INTERVIEW COULD GET ME
BANNED.
WHO KNOWS, IT’S A CRAZY WORLD.
STUART: YOU’RE NOT GOING TO GET
BANNED FROM ME AND THAT’S A
FACT.
PORTNOY, MR. DAVE, YOU’RE THE
MAN OF THE HOUR, HOPE TO SEE YOU