"In 2021, Michael Burry helped ignite the meme stock frenzy by accumulating a 5% stake in GameStop ( ) through his Scion Asset Management fund. He pushed management to repurchase shares, citing undervaluation as video games were making a shift toward digital and downloads. Burry's activism drew the attention of Chewy ( NASDAQ:CHWY ) founder Ryan Cohen, who built his own 13% position in the stock, advocating for similar changes."
"This, in turn, caught the eye of Reddit users on WallStreetBets, who coordinated buys to squeeze short sellers. The result was GameStop stock surging over 1,600% in a matter of weeks, sparking a broader retail trading boom. Now, Burry has disclosed via his Substack that he's buying GameStop stock again, citing faith in Cohen's leadership and the stock's proximity to tangible book value."
Michael Burry accumulated a 5% stake in GameStop in 2021 through Scion Asset Management and pushed for share repurchases citing undervaluation as games shifted to digital. Ryan Cohen built a 13% position and advocated similar changes. Reddit users on WallStreetBets coordinated buys that drove GameStop over 1,600% higher in weeks, triggering a retail trading boom. Burry disclosed via Substack that he is buying GameStop again, citing faith in Cohen's leadership and the stock's proximity to tangible book value. Cohen's recent purchase of 1 million shares and Burry's disclosure lifted shares more than 12% in the past week. Recent results show hardware and accessories and software sales declines, and overall net sales fell to $821 million.
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