Shares of GameStop have experienced a significant surge following the announcement from Michael Burry, the renowned investor known for his role in “The Big Short,” revealing his recent purchases of the stock. Burry, who now shares insights via Substack, confirmed his stake in the video game and collectibles retailer in a much-anticipated post.
The excitement surrounding GameStop began earlier when Burry hinted at his positive outlook in November and December via social media, building anticipation for a more detailed analysis. In his recent post, Burry stated, “I own GME. I have been buying recently. I expect I am buying at what may soon be 1x tangible book value / 1x net asset value.” He also expressed confidence in the leadership of Ryan Cohen, the company’s chairman, envisioning a prosperous future under his guidance.
GameStop’s trading volume skyrocketed in response to Burry’s announcement, with 11.9 million shares changing hands by noon ET—over six times the average volume for that time of day. His long-term commitment to the stock has ignited a wave of interest in short-term call options as traders rush to capitalize on the momentum. According to reports, call volumes exceeded double their 20-day moving average.
GameStop’s appeal has been partly driven by nostalgia and its connection to cultural trends, coupled with charismatic leadership. Burry represents a renewed wave of enthusiasm after the memorable rally earlier this year led by Keith Gill, also known as Roaring Kitty, who reinvigorated interest in the stock before his swift disappearance from the scene.
Both Burry and Gill share similar sentiments regarding the stock’s potential, believing in its undervaluation and placing faith in its management, particularly in Cohen’s strategic decision-making. This indicates a promising outlook not only for GameStop but also for investor sentiment towards the stock as it continues to capture the excitement and interest of the trading community.