Mark Cuban on Why You Should Still Hold Onto Your GameStop Stock

Entrepreneur billionaire and Dallas Mavericks owner Mark Cuban hopped on the Wall Street Bets subreddit for an AMA ("Ask Me Anything," that's not a stock symbol) to discuss the recent stock market trends that have made the online community famous. At one point, Cuban advised those that have shares of the GameStop stock (GME) to hold it. In the AMA and in an email to Newsweek, he stressed traders having a reason to buy stocks.

In an email, Cuban reiterated holding if it's doable. "Its the same for any falling stock. If you can afford to hold. You hold," he wrote.

When asked why you hold and if it's with the anticipation that the stock will go back up, he responded in an email, "You certainly hope it goes back up. But stocks don't always move on the timetable you want. Like I said in the ama, if the reason for your purchase is still valid, why would you sell if you can afford to hold it?"

Cuban's response to a Redditor asking about why GameStop's stock was "plummeting so much" received over 50,000 upvotes. In his response, he broke down why it dropped (most likely due to Robinhood halting sales), but then he offered advice to those that hadn't sold their GME shares."If you can afford to hold the stock, you hold. I dont own it, but thats what i would do," he wrote.

Mark Cuban on #wallstreetsbets telling us he would hold and stick it to wallstreet is what we all needed to hear with this $AMC and $GME plummet today

— Matthew Goluba (@mkgoluba) February 2, 2021

He explained that once the stock is able to be traded with ease again, it will show "what [Wall Street Bets] is really made of." He said that he felt that major Wall Street players had shorted GameStop again, but he pointed the amateur retail investors away from using zero-fee brokers like Robinhood again. "Do you stay with RH, who is going to have the same liquidity problems over and over again, or do you as a group find a broker with a far, far, far better balance sheet that wont cut you off and then go ham on Wall Street," he wrote.

In an interview with CNBC, he stressed that he wasn't advising people to buy more shares, but rather not to sell. "I wasn't telling people to buy more at all. In fact, I said, 'Look, any of us who have traded long enough have been through the pain of making mistakes, and the key is to learn your lesson, and if you're gonna hold the stock—if you can afford to hold it—I'm not a fan of selling into a diving market.' And, so I told them, if you can afford it to hold on," he said.

In another response to someone asking for a recommendation on which service to use, Cuban again stressed going to the broker with the "strongest balance sheet."

Throughout the AMA, Cuban offered much advice to aspiring traders, such as being patient or making sure they knew exactly why they were making certain investments, as well as learning from mistakes.

You have to learn from your trading experiences

— Mark Cuban (@mcuban) February 2, 2021

Another knowledge bomb from Mark Cuban's AMA this morning on #WallStreetBets - Solid advice! @mcuban #tuesdayvibe

— Tim Sanders (@sanderssays) February 2, 2021

With the possibility of a Securities and Exchange Commission investigation floated, Cuban expressed distrust toward the agency. "The SEC is a mess. I wouldnt trust them to do the right thing ever. Its an agency built by and for lawyers to be lawyers and win cases rather than do the right thing," he wrote in part.

@mcuban preach ๐Ÿ‘๐Ÿผ๐Ÿ‘๐Ÿผ๐Ÿ‘๐Ÿผ

— Ash (@CWA) February 2, 2021

In a final thought of the AMA, Cuban gave props to the Redditors for inspiring people all over the United States (including his children) to want to trade stocks. He also pointed towards one of the largest flaws in using apps like Robinhood for this movement, which was insufficient funds on Robinhood's part. "That said, you will do all this again. You will go after WS and the next time you will be smarter. There was only one thing that messed you all up: RobinHood and the other zero commission brokers that everyone used didnt have enough capital to fund the fight. They let you down in a big way," he wrote.

Final Message from @mcuban to Wall Street Bets on what to do ๐Ÿ’ฏ

— Reddit Trading ๐Ÿš€ (@reddittrading) February 2, 2021

Mark Cuban's final message for everyone on r/wallstreetbets

— Atharva Kharbade (@athrvakhrbde) February 2, 2021

He concluded with a final word of encouragement: "No disruption is easy or happens in a straight line. Stay with it. I am a believer."

Mark Cuban Dallas Mavericks
Dallas Mavericks Mark Cuban looks on during the first half of a game against the Los Angeles Lakers at Staples Center on October 31, 2018 in Los Angeles. On Tuesday, Cuban's response to a Redditor asking about why GameStop's stock was "plummeting so much" received over 50,000 upvotes. Sean M. Haffey/Getty