Hedge fund manager Bill Ackman warned Tuesday that the stock market has devolved into a "casino" driven by speculative trading and elevated leverage levels.

Speaking on CNBC's "Squawk Box," the founder of Pershing Square Capital Management said he frequently feels markets are "broken," with stock prices swinging wildly in ways that defy fundamentals. "Every few days, I feel like markets are broken," Ackman stated. "Stocks trade at prices that make no sense to me. Yes, it's good if you're a long-term investor and you can buy at a stupid price. I don't think it's good for the country generally."

He added that such conditions are not inherently good for the economy or society. "We're back to the casino-type markets when there was 95% leverage," Ackman stated. "I don't think that's inherently good for the economy, for society, and it's leading to these massive moves in stocks."

Ackman highlighted the proliferation of one-day leveraged vehicles, perpetual futures, and the influence of sports betting culture as factors encouraging investors to treat equities like a get-rich-quick scheme. He noted these dynamics have produced extreme volatility but also created buying opportunities for long-term investors like his firm.

Pershing Square has capitalized on recent dislocations, adding to positions in Microsoft during the earlier "SaaSpocalypse" selloff, Amazon following declines tied to President Donald Trump's tariffs, and Alphabet after sharp moves following ChatGPT's launch. Ackman expressed continued bullishness on names including Visa, Mastercard, and Netflix, where the firm disclosed a position in August.

The comments come amid broader market turbulence, underscoring tensions between short-term speculative activity and traditional fundamental investing. Ackman emphasized that while volatility can benefit disciplined buyers, it poses risks for retail participants chasing quick gains, an attitude that could have disastrous consequences.

Market observers have noted similar patterns of high leverage in prior cycles, often preceding corrections. Ackman's remarks reflect ongoing debates over the sustainability of current trading behaviors in equity markets.