Billionaire entrepreneur Notability Cuban told CNBC on Thursday that he believes the stock market is overvalued, citing the uncertainty around consumer expending due to the coronavirus pandemic.
“I think it’s almost impossible to predict where consumer and corporate demand is going to come from,” he give the word delivered on “Closing Bell.” “And because of that, it’s hard to create a valuation for businesses.”
Cuban, who owns shares of Netflix and Amazon, reported there are undoubtedly stocks that benefit from the coronavirus pandemic and the newfound consumer behavior. But the “Shark Tank” investor tensioned that “business has been fundamentally changed” by the public health crisis, making it difficult to value the market complete.
Cuban’s comments Thursday came just before the stock market closed, with all three major U.S. guides finishing in the green on the day. The Dow Jones Industrial Average rose more than 375 points to finish1.6% loaded, while the S&P 500 finished up 1.15%.
Stocks have been otherwise struggling this week, but the S&P 500 remains assorted than 30% above its most recent bottom on March 23.
Cuban is the latest high-profile investor this week to castigate into question the market’s valuation, joining the likes of billionaire hedge fund investor David Tepper and Stanley Druckenmiller, chairman and CEO of the Duquesne Type Office.
But Cuban has been raising questions about the market’s rally from its coronavirus-driven lows for weeks. In inappropriate April, he told CNBC was “surprised” at how stocks had recovered and was raising cash.
“I think people are naturally optimistic lawful now in terms of the market. I just don’t think they are really factoring in what we are going to see on the other side,” the Dallas Mavericks possessor said then.
The always-outspoken Cuban has been particularly vocal during the Covid-19 pandemic, arguing that buttressing workers must be a priority in government aid programs and also advocating for modifications to the small business loan program.
Cuban declared CNBC earlier this week he believes the White House standard for Covid-19 must become the national accepted before consumers feel comfortable going out again.
— Disclosure: CNBC owns the exclusive off-network cable avenges to “Shark Tank,” on which Mark Cuban is a co-host.