Michael Burry, the investor renowned for predicting the 2008 financial crisis, disclosed in his Substack newsletter that he has been building a position in GameStop. Following his announcement, shares rallied by as much as 7% in a single trading session, extending a year-to-date gain of approximately 20%. Burry characterized his investment as a long-term value play, emphasizing that he is not banking on renewed meme-stock volatility or a short squeeze. He indicated confidence in CEO Ryan Cohen’s ability to deploy capital effectively and expressed willingness to hold the position for years, potentially decades.

Since taking the helm in late 2023, Ryan Cohen has demonstrated commitment through significant insider purchases. Recent Securities and Exchange Commission filings reveal that Cohen acquired roughly 500,000 shares—representing over 9% of outstanding stock—for more than $10.5 million. This level of insider buying typically signals executive confidence in future performance. Cohen has pivoted the company’s strategy toward expanding its collectibles division and experimenting with digital assets, including a Bitcoin treasury initiative, while seeking acquisition targets that could generate stable cash flows.

Through the first ten months of 2025, GameStop reported a 5% decline in hardware revenues and a 27% drop in software sales, its smallest segment. Offsetting these trends, the collectibles business posted 55% year-over-year growth, driven by apparel, toys and trading-card categories. The company improved operating cash flow significantly and generated $0.67 of diluted earnings per share during this period, up from a loss a year earlier. A lone Wall Street analyst projects nearly $1 of EPS and $4.16 billion in total revenue for 2026, implying a valuation of roughly 2.3 times revenue and about 22 times forward earnings against a market capitalization near $10 billion. Investors will be watching for signs of revenue stabilization in hardware and the realization of Cohen’s acquisition-driven growth strategy.