Michael Burry's GameStop Purchases Boost Investor Confidence
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 9h ago
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Source: Benzinga
- Investor Confidence Rebound: Notable investor Michael Burry disclosed in a Substack post that he has been accumulating GameStop shares recently, believing the stock is trading near tangible book value, which has bolstered market confidence in the company.
- Insider Accumulation: Board member Lawrence Cheng purchased 5,000 shares of GameStop on January 26 for about $114,000, a relatively small buy that aligns with CEO Ryan Cohen's recent buying spree, indicating insider confidence in the company's future.
- Increased Trading Activity: On Tuesday, GameStop saw nearly 12 million shares traded, significantly above the average of 6.6 million, reflecting renewed enthusiasm around Cohen's buying activity, as he acquired one million shares at just over $21 each, raising his stake to approximately 9.3%.
- Technical Indicator Analysis: GameStop is currently trading 12.2% above its 20-day simple moving average but is 0.8% below its 200-day moving average, indicating short-term strength but potential long-term pressure; the RSI suggests overbought conditions, warranting caution for possible pullbacks.
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.
