Michael Burry Increases GameStop Holdings, Anticipates Long-Term Value
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: CNBC
- Increased Holdings: Notable investor Michael Burry disclosed that he has been buying GameStop shares recently, expecting to invest at nearly 1x tangible book value, indicating confidence in the company's long-term value.
- Stock Price Surge: Following Burry's announcement, GameStop's stock surged nearly 8%, reflecting positive market sentiment regarding its long-term investment potential, although the price later retreated to around $25.
- Strategic Positioning: Burry believes that CEO Ryan Cohen is effectively leveraging the company's cash flows and capital, expressing trust in Cohen's governance and strategy despite the company's challenges, and he is willing to hold long-term.
- Bitcoin Investment: GameStop began purchasing Bitcoin last year, a move Burry supports, as he sees this asset potentially providing protection amid macroeconomic uncertainties, indicating the company's pursuit of new growth opportunities.
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About GME
GameStop Corp. offers games and entertainment products through its stores and ecommerce platforms. The Company operates in four geographic segments: United States, Canada, Australia and Europe. Each segment consists primarily of retail operations, with the significant majority focused on games, entertainment products and technology. The Company has a total of approximately 3,203 stores across all of its segments: 2,325 in the United States, 193 in Canada, 374 in Australia, and 311 in Europe. Its stores and ecommerce sites operate primarily under the names GameStop, EB Games and Micromania. Its Australia and Europe segments also include 38 pop culture-themed stores selling collectibles, apparel, gadgets, electronics, toys and other retail products for technology enthusiasts and general consumers in international markets operating under the Zing Pop Culture brand. Its retail stores are generally located in strip centers, shopping malls and pedestrian areas.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
