Michael Burry Sees Untapped Value in GameStop
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
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Source: seekingalpha
- Investor Confidence: Investor Michael Burry has disclosed a long position in GameStop (GME), highlighting the company's untapped value and strategic optionality under CEO Ryan Cohen's leadership.
- Improved Financials: GameStop's balance sheet has been fortified, boasting approximately $8.8 billion in cash and $4.4 billion in interest-free debt, while sustaining tangible book value growth despite a shrinking operating business.
- Strategic Transformation: Cohen is driving the company's transformation by reducing store count, divesting non-core assets, and leveraging convertible debt to raise capital, showcasing the potential of a young and disciplined leadership team.
- Market Reaction: GameStop's stock surged 8.5% on Monday and is up 23.5% for the 2026 trading year, reflecting market optimism regarding its future prospects.
Analyst Views on GME
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.
