GameStop shares move higher after Michael Burry says he’s been buying the stock
Traders work at the post where GameStop is traded on the floor at the New York Stock Exchange on June 12, 2024.
Brendan McDermid | Reuters
Michael Burry, the investor made famous by his bet against the U.S. housing market ahead of the financial crisis, disclosed that he has been buying shares of one-time meme darling GameStop.
“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,” Burry said in a Substack post published Monday. “And getting a young Ryan Cohen investing and deploying the company’s capital and cash flows. Perhaps for the next 50 years.”
Shares of GameStop surged nearly 7% Monday after the news.
Burry, who recently closed his hedge fund Scion Asset Management, said his investment is a long-term value play rather than a wager on renewed meme-stock speculation. GameStop was in the center of a meme-stock frenzy that erupted roughly five years ago, when retail traders coordinating on online forums drove the shares to extraordinary heights and forced massive short-covering by hedge funds.
“I am not counting on a short squeeze to realize long-term value,” he wrote. “I believe in Ryan, I like the setup, the governance, the strategy as I see it. I am willing to hold long-term, and I am excited to see where this goes. I am fifteen years his senior, but not too old to be patient.”
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