WHEN: Today, Thursday, February 11th
WHERE: CNBC's "Fast Money Halftime Report"
Following is the unofficial transcript of a CNBC interview with Mark Cuban on CNBC's "Fast Money Halftime Report" (M-F, 12PM-1PM ET) today, Thursday, February 11th. Following is a link to the interview on CNBC.com: http://video.cnbc.com/gallery/?video=3000493201&play=1.
All references must be sourced to CNBC.
WAPNER: AN OUTSPOKEN VOICE I THINK YOU CAN SAY ON THE STOCK MARKET AND OTHER ISSUES. MARK CUBAN NOW JOINING US ON THE TELEPHONE. HE OF COURSE THE OWNER OF THE DALLAS MAVERICKS OF THE NATIONAL BASKETBALL ASSOCIATION BUT ALSO AN INVESTOR. MARK, ITS GOOD TO HEAR FROM YOU. THANKS FOR CALLING IN.
CUBAN: MY PLEASURE GUYS.
WAPNER: SAW SOMETHING YOU PUT OUT ON CYBER DUST TODAY THAT SAID YOURE BUYING WAY OUT OF THE MONEY CALLS IN GOLD, OF ALL THINGS, WHY?
CUBAN: WELL THEYRE AT THE MONEY NOW WHICH IS ALWAYS A GOOD THING. I THINK PEOPLE ARE SO CONFUSED ABOUT THIS MARKET. NOBODY REALLY UNDERSTANDS WHATS HAPPENING INCLUDING ME. THINGS I THOUGHT MADE SENSE DIDN'T MAKE SENSE AND WERENT WORKING, I JUST ASKED MYSELF, WHERE WERE MOMENTUM PLAYERS GOING TO LOOK NEXT. GOLD HAD STARTED TO PICK UP. SO I THINK WHEN TRADERS DONT KNOW WHAT TO DO, THEY GO WHERE EVERYBODY IS AND I THOUGHT THERE WAS A GOOD CHANCE THAT WOULD BE GOLD.
WAPNER: YOURE SIMPLY TRYING TO RIDE SOME MOMENTUM THAT YOU SEE IN THE MARKET.
CUBAN: YEP NOTHING FUNDAMENTAL. NOTHING INTRINSIC I THINK GOLD IS MORE RELIGION THAN FUNDAMENTAL. I DONT SEE IT AS A HEDGE. THIS IS PURELY A TRADE.
WAPNER: YOU HAVE TAKEN A COMPANY PUBLIC IN THE PAST. YOU RUN AN ORGANIZATION AND A BUSINESS NOW THAT RELIES ON THE AMERICAN PUBLIC TO CONTINUE TO BUY YOUR TICKETS THAT YOURE SELLING. CAN YOU GIVE US AN IDEA OF WHERE YOUR HEAD IS AROUND THE STOCK MARKET IN GENERAL AND WHAT YOU JUST HEARD FROM THE FED CHAIR OVER THE LAST COUPLE OF DAYS WHERE YOU THINK INTEREST RATES ARE GOING AND WHAT IT ALL MEANS IN THE BIG PICTURE.
CUBAN: SURE. WELL FIRST OF ALL THE QUESTION IS THE ECONOMY AND WHATS DRIVING WHAT. FROM THE MAVERICKS AND FROM ALL MY SHARK TANK COMPANIES. IM NOT REALLY SEEING ANY TYPE OF SOFTNESS AT ALL. WERE CONTINUING TO HIRE WE ARE HAVING CHALLENGES HIRING AT THE HIGHER END LIKE EVERYBODY IS. THERE IS LOTS OF OPEN JOBS FOR SPECIALTY AREAS AND SPECIALTY EXPERTISE. WERE RAISING WAGES. YOU KNOW THE AMERICAN AIRLINES CENTER, WHICH HAS OVER A THOUSAND EMPLOYEES, WE JUMPED UP WAGES THAT -- LAST DECEMBER BY $2, PROBABLY GOING TO DO IT AGAIN, SO THERE IS COMPETITION FOR BETTER WORKERS THERE. SO IM NOT SEEING IT IN DALLAS AND OTHER AREAS ACROSS THE COUNTRY A SLOWDOWN. NOW, AS FAR AS THE MARKET IS CONCERNED, IM LIKE EVERYBODY ELSE, IM CONFUSED. THERE ARE SO MANY DIFFERENT CORRELATIONS, NOT CAUSATIONS, BUT CORRELATIONS THAT IT IS HARD TO KNOW WHAT IS HAPPENING NEXT. SO I THINK EVERYBODY TENDS TO SAY WHERE ARE THE CORRELATIONS NOW, OIL MOVES, MARKETS GO DOWN. CURRENCY MOVES, INTEREST RATES GO DOWN. THE TEN-YEAR GOES DOWN. I THINK, YOU KNOW, FOR RIGHT NOW, THOSE HAVE STAYED IN PLACE, BUT IT ALL SMELLS LIKE ALGORITHMIC TRADING. AND I WILL ADD A LITTLE PIECE HERE IM GETTING PITCHED NEW DEALS NOW THAT ARENT ABOUT HIGH FREQUENCY TRADERS WHERE IT IS A LATENT FEE ARBITRAGE BUT MORE ABOUT APPLYING MACHINE LEARNING AND ARTIFICIAL INTELLIGENCE TO ALGORITHMIC TRADING. IT IS NOT JUST ABOUT SETTING RULES AND SAYING OKAY IF THIS, THEN THAT, IF OIL MOVES, DO THIS. OR OF THIS HAPPENS THEN DO THAT BUT LITERALLY TAKING QUALITATIVE INFORMATION AND NEW DATA POINTS AND GETTING SMARTER. AND IT IS THE ULTIMATE RANDOM WALK DOWN WALL STREET WHERE I THINK THE MARKET IS BECOMING SO EFFICIENT THAT IT IS VERY DIFFICULT FOR INDIVIDUAL -- VERY -- IT IS FAR MORE DIFFICULT TO PICK STOCKS AND ANYTHING THAT IS EASILY TRADED OR ANY ASSET CLASS OR STOCK CLASS THAT IS LIQUID.
WAPNER: SURE.
CUBAN: I GUESS ANOTHER WAY TO PUT THAT, IM NOT SEEING WEIRD MOVEMENTS OR BIG MOVEMENTS IN MY SMALL CAPS. LITTLE COMPANIES THAT I OWNED FOREVER THAT, YOU KNOW, THEY DONT MOVE WITH THE PRICE OF OIL. BUT ANYTHING THAT IS PART OF A LIQUID INDEX WHERE YOU CAN TRADE OPTIONS, YOU SEE IT. I HAVE A HUGE POSITION IN NETFLIX THAT I PLAN ON KEEPING AND I BOUGHT PUT. AND I LITERALLY, I SAID, OKAY, IM TIRED OF THIS, DONT KNOW WHAT IS HAPPENING, IM BUYING PUTS AGAINST MY ENTIRE POSITION AND I WAS PUT IN AN ORDER WITH MY BROKER AND THEY WOULD PUT OUT, YOU KNOW, 100 CONTRACTS AND ALL OF A SUDDEN THE PRICE WOULD GO UP 50 CENTS. AND THEN I WOULD HAVE TO WAIT, AND THE PRICE WOULD COME BACK DOWN. OBVIOUSLY I WAS GETTING FRONT RUN BY SOME HFT FOLKS AND IT ENDED UP COSTING BECAUSE I COULDNT GET THE WHOLE POSITION IN. AND SO THE POINT BEING THAT IT IS SO DIFFICULT TO REALLY UNDERSTAND AND JUST PLAY FUNDAMENTALS RIGHT NOW, EVEN TECHNICALS RIGHT NOW AND I THINK THAT IS CONFUSING EVERYBODY.
WAPNER: LET ME ASK YOU THIS AND AT THE SAME TIME, YOU SAID YOU BELIEVE IN YOUR NETFLIX POSITION, YOU BASICALLY HEDGED IT WITH ALL OF THESE PUTS. YOU WEAR SO MANY DIFFERENT HATS THESE DAYS, AND MANY IN THE PUBLIC MAY RECOGNIZE YOU OBVIOUSLY FROM THE SHARK TANK THING AND THE NBA, BUT SOME MAY FORGET YOU FOUNDED BROADCAST.COM, TOOK IT PUBLIC, SOLD IT TO YAHOO! BEFORE THE TECH BUST. IF YOU LOOK AT SOME OF THE WAYS THAT TECHNOLOGY STOCKS HAVE BEEN TRADING OVER THE LAST MANY WEEKS, IT IS REMINDING SOME OF THAT VERY PERIOD IN TIME. CAN YOU COMMENT ON THAT? I SPECIFICALLY CITE THINGS LIKE LINKEDIN LAST WEEK AND OF THE CLOUD STOCKS WHICH IMPLODED BEFORE OUR EYES.
CUBAN: YEAH IT WAS CRAZY. BECAUSE THE SIMILARITY REALLY, YOU KNOW, WHEN WE SOLD TO YAHOO! THE MINUTE I WAS LEGALLY ABLE TO SIX MONTHS LATER I HEDGED EVERYTHING. AND FOR THE SAME REASON IM HEDGING RIGHT NOW, YOU KNOW, SOMETHING IS UP AND I DIDN'T QUITE HAVE MY ARMS COMPLETELY AROUND IT. WHEN LINKEDIN CRATERED BY 48%, I THINK IT SENDS A MESSAGE, NOT SO MUCH THEY DONT BELIEVE IN TECHNOLOGY STOCKS AS MUCH, BUT MORE BECAUSE WE DONT KNOW WHERE BUYERS ARE GOING TO COME FROM. AND SO, YOU KNOW, WERE AT THE POINT -- NOW – WHERE ANYTHING THAT HAD MOMENTUM, YOU HAVE TO – YOU ALMOST HAVE TO BAIL OUT BECAUSE YOU DONT KNOW WHAT IS GOING TO HAPPEN NEXT. SO I THINK THATS WHERE THE COMMONALITY IS BETWEEN NOW AND THE INTERNET BUBBLE. WHEN THERE WERE NO BIDS, NO BUYERS, EVERYBODY REALIZED THAT VERY QUICKLY AND STARTED TO BAIL. AND SO WE HAVE SEEN THAT IN A LOT OF TECH STOCKS, YOUVE SEEN THAT IN THE FANG. STOCKS AND, YOU KNOW WHAT LOOKED LIKE A GOOD, YOU KNOW, BUY-IN POINT, YOU KNOW, WHEN AMAZON OR GOOGLE OR FACEBOOK OR PEAKING NEAR THE HIGHS, WELL IF IT WAS DOWN 100 BUCKS, AND THEN I WOULD HAVE TO JUMP IN, NOW DOESNT LOOK LIKE A GOOD ENTRY POINT ANYMORE AND GOES BACK TO THE OLD ADAGE, DONT TRY TO CATCH A FALLING KNIFE. AND EVERYBODY IS JUST BAILING OUT AND THATS THE SIMILARITY.
WAPNER: THAT LEADS ME TO MY LAST QUESTION. SINCE WERE TALKING TECH AND SO-CALLED FALLING KNIVES, WHEN YOU LOOK AT A TWITTER, WHAT DO YOU SEE IF YOU ARE PART OF AN INVESTMENT GROUP OR IF YOU WERE A CEO OF ANY NUMBER OF TECH COMPANIES OUT THERE, WOULD YOU LOOK AT THIS PROPERTY AS AN ASSET YOU WANTED TO HAVE?
CUBAN: YEAH, YOU KNOW, A LITTLE BIT LOWER I CERTAINLY WOULD. I THINK NOW IT IS AT THE QUESTION POINT WITH THE $10 BILLION MARKET CAP, BUT $6 BILLION MARKET CAP WITH $2 BILLION IN CASH, I WOULD BE A HUGE BUYER OF THE STOCK. BUT ILL TELL YOU, THE REAL LOSER IN ALL OF THIS, ARE COMPANIES LIKE SNAPCHAT, RIGHT? WHEN YOU LOOKED AT LINKEDIN RIGHT NOW AND THEY DID, WHAT, 500 MILLION IN THE QUARTER, THIS PAST QUARTER, I DONT REMEMBER THE EXACT NUMBERS AND HAVE A $13 BILLION MARKET CAP, LOOK AT TWITTER, THEY DID 700 MILLION IN THE LAST QUARTER AND HAD A $10 BILLION NET CASH, $ BILLION MARKET CAP AND THEN YOU LOOK AT SNAPCHAT WHICH HAS A 15 BILLION, YOU KNOW, LAST RATE AND UBER WHICH HAS A 61 BILLION LAST RATE. THOSE ARE THE COMPANIES THAT ARE GOING TO GET CRUSHED BECAUSE, YOU KNOW, UNLESS THIS MARKET REALLY RALLIES, THEYRE GOING TO HAVE TO STAY PRIVATE AND UNLESS THEYRE PROFITABLE, THEY HAVE TO KEEP ON RAISING CAPITAL AT FURTHER AND FURTHER DOWN ROUNDS, AND, YOU KNOW, NOW ON A DOWN ROUND, EVERY NEW INVESTOR WILL GET AN IPO PUT, MEANING THEYRE GOING TO DO WHATEVER SHARES IT TAKES TO PROTECT THEIR DOWNSIDE. AND I THINK THE PRIVATE COMPANIES RIGHT NOW, THATS THE BUBBLE THAT IS MOST ANALYGEOUS TO THE 2000 ERA BECAUSE THOSE PRIVATE COMPANIES ARE GETTING CRUSHED RIGHT NOW, WHETHER OR NOT THEY REALIZE IT OR NOT.
WAPNER: MARK, I APPRECIATE YOUR TIME SO MUCH TODAY. THANKS SO MUCH FOR CALLING IN.
CUBAN: ANYTIME, GUYS. ENJOY THE SHOW.
About CNBC:
With CNBC in the U.S., CNBC in Asia Pacific, CNBC in Europe, Middle East and Africa, CNBC World and CNBC HD , CNBC is the recognized world leader in business news and provides real-time financial market coverage and business information to approximately 371 million homes worldwide, including more than 100 million households in the United States and Canada. CNBC also provides daily business updates to 400 million households across China. The network's 15 live hours a day of business programming in North America (weekdays from 4:00 a.m. - 7:00 p.m. ET) is produced at CNBC's global headquarters in Englewood Cliffs, N.J., and includes reports from CNBC News bureaus worldwide. CNBC at night features a mix of new reality programming, CNBC's highly successful series produced exclusively for CNBC and a number of distinctive in-house documentaries.
CNBC also has a vast portfolio of digital products which deliver real-time financial market news and information across a variety of platforms. These include CNBC.com, the online destination for global business; CNBC PRO, the premium, integrated desktop/mobile service that provides real-time global market data and live access to CNBC global programming; and a suite of CNBC Mobile products including the CNBC Real-Time iPhone and iPad Apps.
Members of the media can receive more information about CNBC and its programming on the NBC Universal Media Village Web site at http://www.nbcumv.com/mediavillage/networks/cnbc/.