GameStop (GME) Stock: Michael Burry Discloses New Position in Video Game Retailer

TLDR

• Michael Burry disclosed he’s been buying GameStop shares, calling it a long-term value play
• Burry believes in CEO Ryan Cohen’s ability to deploy the company’s $4.7 billion cash pile
• GameStop shares jumped 6-8% on Monday following Burry’s announcement
• Cohen recently purchased 1 million shares for $21.4 million and faces shareholder vote on performance-based compensation
• Burry compares Cohen’s strategy to Warren Buffett’s approach at Berkshire Hathaway

Michael Burry is back in GameStop. Nearly five years after the meme stock frenzy, the investor famous for betting against the housing market has returned to GME shares.

Burry announced his position in a Substack post published Monday. He said he’s been buying recently and expects to pay around 1x tangible book value.

GameStop Corp., GME

GameStop stock rallied as much as 8% following the news. The shares closed up 4.44% on Monday.

This isn’t Burry’s first GameStop rodeo. He originally purchased shares in 2019 but sold his stake in late 2020. He missed the January 2021 meme stock rally that sent shares soaring.

The Ryan Cohen Factor

Burry’s thesis centers on CEO Ryan Cohen and what he’ll do with GameStop’s cash hoard. The company sits on $4.7 billion in net cash after raising billions during periods of meme stock mania.

Cohen became GameStop’s chairman in June 2021 and CEO in 2023. He’s compared his strategy to Warren Buffett’s approach at Berkshire Hathaway.

Buffett famously transformed Berkshire from a dying textile company into a conglomerate. Cohen told Barron’s in December that taking a business without great growth prospects and navigating it to other investments is “definitely GameStop.”

Cohen says the company is open to deploying cash in ways unrelated to its retail business. GameStop has expanded into collectibles after failed experiments with NFTs.

The company has closed stores aggressively. GameStop operated 3,203 stores as of February 2025, down from 4,816 in January 2021.

Sales fell 4.6% to $821 million in the latest quarter ending November 1. But net income jumped 343% to $77.1 million. GameStop has now posted six consecutive quarters of GAAP profitability.

Cohen’s Compensation Package

Cohen hasn’t taken a salary as CEO until recently. Shareholders will vote in March or April on a performance-based stock option package.

If approved, Cohen would receive options to purchase up to 171.5 million shares at $20.66 each. The awards depend on hitting ambitious targets including a $100 billion market value and $10 billion in cumulative performance EBITDA.

Cohen has been putting his own money on the line. Last week he purchased 1 million GameStop shares for roughly $21.4 million on the open market.

Cohen said in an SEC filing it’s “essential” for a public company CEO to buy shares with personal funds “to further strengthen alignment with stockholders.”

GameStop began buying bitcoin last year, following MicroStrategy’s playbook. Cohen cited macro concerns and bitcoin’s fixed supply as protection against certain risks.

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