Michael Burry's Long-Term Bet on GameStop

Michael Burry, renowned for his prescient investment strategies exemplified in "The Big Short," has recently disclosed a significant investment in GameStop, a company that became famous during the meme stock frenzy of 2021. In a Substack post published on January 26, 2026, Burry announced that he has been accumulating shares of GameStop, leading to an immediate surge in the stock price by approximately 8%. Burry emphasized that his investment is a long-term value play rather than a speculative bet on renewed meme stock volatility. He stated, “I expect I am buying at what may soon be 1x tangible book value / 1x net asset value,” indicating his belief in the company's underlying asset value.

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GameStop has undergone significant changes since its peak during the meme stock phenomenon, where retail traders drove its stock price to extraordinary heights. Following that period, the company has strategically leveraged investor interest to raise billions through equity offerings, resulting in a substantial cash reserve. Burry praised GameStop's current CEO, Ryan Cohen, for his ability to navigate the company's challenges and maximize its financial potential. Burry noted, “Ryan is making lemonade out of lemons,” acknowledging the difficult circumstances Cohen inherited.

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Burry's approach to investing in GameStop diverges from the speculative nature that characterized its previous trading history. He explicitly stated, “I am not counting on a short squeeze to realize long-term value,” reinforcing his belief in the company's governance and strategy under Cohen's leadership. Burry expressed his willingness to hold the stock for the long term, suggesting that he sees potential growth over the next 50 years. This perspective aligns with his historical investment philosophy, which often focuses on undervalued opportunities.

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In addition to Burry's investment, Ryan Cohen has also been increasing his personal stake in GameStop. Recent SEC filings revealed that Cohen purchased 1 million shares, further demonstrating his commitment to the company. Cohen's actions are seen as essential for aligning the interests of executives with those of shareholders, as he believes it strengthens the company's governance.

GameStop stock rockets 8% as Burry reveals stake, calls investment long-term bet

While Burry's endorsement has reignited interest in GameStop, it has not led to a similar surge in other meme stocks like AMC and Koss. Critics may argue that Burry's long-term outlook could be overly optimistic given GameStop's historical volatility and the challenges facing the retail gaming industry. Nonetheless, Burry's investment could attract other value-focused investors who respect his analytical approach.

GameStop stock rockets 8% as Burry reveals stake, calls investment long-term bet

• “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,” — Michael Burry, Investor

GameStop shares move higher after Michael Burry says he's been buying the stock

• “I am not counting on a short squeeze to realize long-term value,” — Michael Burry, Investor

GameStop shares move higher after Michael Burry says he's been buying the stock

• “Ryan is making lemonade out of lemons,” — Michael Burry, Investor

GameStop shares move higher after Michael Burry says he's been buying the stock

Burry's investment in GameStop reflects a calculated approach to value investing, highlighting the potential for growth under Cohen's leadership while navigating the complexities of the retail gaming market.

GameStop stock jumps 8% after Michael Burry reveals buying