Michael Burry says he's buying GameStop shares and backs CEO Ryan Cohen

Businessinsider reports Michael Burry said on Monday he has been buying GameStop shares and that he believes in CEO Ryan Cohen.

Burry announced the position on his Substack, Cassandra Unchained, and said the trade is a long-term play rather than a bet on another meme-stock mania; the news sent shares of the video game retailer up as much as 6%. He previously sold GameStop ahead of the 2021 short squeeze and wrote, "I expect I am buying at what may soon be 1x tangible book value / 1x net asset value," adding "And getting a young Ryan Cohen investing and deploying the company's capital and cash flows. Perhaps for the next 50 years."

Burry acknowledged the move may seem unorthodox and wrote, "That is not a common occurrence in the U.S. stock market today." He added, "I am not counting on a short squeeze to realize long-term value," and wrote, "I believe in Ryan. I like the setup, the governance, the strategy as I see it. I am willing to hold long-term, and I am excited to see where this goes. I am fifteen years his senior, but not too old to be patient." His bullishness lifted GameStop but, per data from retail trading platform ApeWisdom, did not shift attention to other meme-stock favorites like AMC and Koss.

Key Topics

Business, Michael Burry, Gamestop, Ryan Cohen, Cassandra Unchained, Chewy