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While the world is grappling with COVID-19, billionaire Mark Cuban sheds some light on how it can change things positively for the business world.
American billionaire Mark Cuban has finally got his voice out speaking around the ongoing coronavirus pandemic. However, instead of any usual talks, Mark Cuban sees how coronavirus will change capitalism for the better.
Speaking on CNBC’s “Closing Bell” show on Wednesday, Cuban said that he believes coronavirus will make capitalism more “compassionate”. Taking a dig at businesses, he added that executives will now realize that we need to put more emphasis first on employees. If not done properly, the billionaire believes that we can have far-reaching consequences than the 2008 financial crisis. Cuban said:
“I think capitalism is going to become a lot smarter and a lot more compassionate because of what we’re going through. It can’t just be about shareholders. In fact, you have to put employees ahead of shareholders.”
Besides, Cuban thinks that businesses focusing on good employee practices will see higher participation from the shareholders. He explained:
“I’ll give company A, B, or C a higher P/E ratio when I buy the stock as a reflection of the fact that they understand the longer term and it’s not just about this quarter or this year.”
Cuban believes that post the coronavirus pandemic, we are likely to see a major shift in how businesses will evolve. Besides, he adds that it would also change the social and political scenario in the U.S.
“Everybody felt the risk of what was happening politically, and the threats, seeing the same surveys about Gen Z and millennials liking socialism as much as they liked capitalism,” Cuban said. “And I think any smart CEO recognizes that was a threat.”
Mark Cuban Remains Skeptical of Stock Market Rally amid Coronavirus Outbreak
This week, we saw the Dow Jones Industrial Average surging over 10% with more trading day to go. Similarly, other indices like the S&P 500 and the Nasdaq Composite also showed recovery this week. But Mark Cuban has warned investors saying that he personally isn’t convinced about the market surge. Speaking to CNBC, Cuban said:
“I’m surprised. I think this is kind of buy the rumor and potentially we sell the news when reality sets in. I think people are naturally optimistic right 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.”
Let us also remind you that Mark Cuban has made a billion-dollar fortune for himself by investing in different companies, new-age start-ups, and stocks over the last few decades. Cuban currently owns the NBA’s Dallas Mavericks and said that he hasn’t bought any stocks in the last two weeks. Besides, Cuban remains confident about his core holdings in Amazon and Netflix. He said:
“If I’m wrong and the market keeps on going up, my core holdings, Netflix and Amazon, are going to continue to do well. I just kept where I was. I haven’t added or subtracted.”
Despite this market crash, shares of Amazon.com Inc (NASDAQ: AMZN) and Netflix Inc (NASDAQ: NFLX) are trading in positive returns year-to-date. Netflix stock price trades at a 10% premium in 2020, while the Amazon stock price trades at a 15% premium.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.