IBM's Watson 'is a joke,' says Social Capital CEO Palihapitiya

"Watson is a joke, just to be completely honest," he said in an interview with "Closing Bell" on the sidelines of the Sohn Investment Conference in New York. Watson is named after IBM's first CEO, Thomas J. Watson. He recommended Tesla's convertible bonds at the 22nd annual Sohn Conference, pointing out that it was effectively like buying the equity but with the downside protection of a bond. At last year's Sohn Conference, Palihapitiya recommended Amazon, whose stock is up 40 percent in the past year.