In a striking turn for one of Wall Street’s most debated names, famed contrarian investor Michael Burry has been accumulating shares of GameStop Corporation (GME) in 2026. Best known for his prescient bet against the U.S. housing market ahead of the 2008 financial crisis, Burry's move signals a renewed vote of confidence in the embattled video game retailer’s future prospects.
The investor's disclosures have reignited debate about the stock’s narrative, shifting from meme-fueled speculation to a value-oriented thesis.
Michael Burry disclosed that he has been buying GameStop shares as a long-term value investment, not a bet on renewed meme-stock speculation. He said he expects to be accumulating GME near 1x tangible book value and net asset value, citing confidence in CEO Ryan Cohen’s capital allocation, governance, and strategy.
Burry emphasized he is not relying on a short squeeze. Rather, he's willing to hold the stock patiently for years as Cohen leverages GameStop’s large cash position, built through past equity offerings during periods of heightened investor interest. He acknowledged the company’s weak core business but praised Cohen for using the meme-stock phenomenon to raise capital.
Is the stock a buy now? Let's look at Barchart’s data.
About GameStop Stock
GameStop is a specialty retailer of video games, consumer electronics and pop-culture merchandise, operating both brick-and-mortar stores and e-commerce platforms. Headquartered in Grapevine, Texas, GameStop has evolved from a traditional video game retailer into a broader entertainment-oriented retailer while navigating industry shifts toward digital distribution. The company’s market cap is around $10.6 billion.
Since its meteoric rise during the 2021 meme-stock frenzy, GameStop has settled into a far more subdued but still volatile trading pattern. GME’s price in 2026 is in the low-to-mid-$20 range, significantly below the highs reached in January 2021. Its performance so far for 2026 shows a positive return of 14.4% after a notable decline in 2025. The stock is down 16.5% over the past 52 weeks.
In 2026, renewed interest was sparked by high-profile investors accumulating shares. Michael Burry disclosed his GameStop stake on Jan. 26, in a detailed post on his Substack newsletter. He confirmed that he has been actively buying shares of GameStop as part of a long-term value investment thesis rather than a speculative play on meme-stock volatility. The market responded almost immediately to Burry’s disclosure, with around 4.4% rise intraday.
Adding to the bullish signal, Ryan Cohen recently purchased 1 million GameStop shares, reinforcing insider confidence and alignment with shareholders.
The stock is currently trading at 2.78 times sales (TTM), which is a premium to the sector median of 0.97 times.
Top Line Facing Headwinds
GameStop released its third quarter fiscal 2025 results on Dec. 9, 2025, reporting financial results for the quarter ended Nov. 1. The quarter produced net sales of $821 million, down from $860.3 million in the year-ago period.
However, GameStop posted net income of $77.1 million, a significant increase from $17.4 million in the prior year’s third quarter, and adjusted operating income of $52.1 million compared with a loss the year before, reflecting improved cost controls and a shift to higher-margin categories such as collectibles. Its adjusted earnings per share (EPS) came in at $0.24, up dramatically from $0.06 in the prior-year quarter.
Additionally, the company reported a solid liquidity position, with cash, cash equivalents and marketable securities totaling $8.8 billion, substantially higher than the prior year’s level, and carried bitcoin holdings valued at approximately $519.4 million at quarter-end.
While the profitable quarter was encouraging from an operational standpoint, sales in key segments such as hardware and software continued to decline, mirroring broader industry trends toward digital distribution and ongoing retail challenges.
Hardware and accessories sales fell about 12% year-over-year (YOY) to $367.4 million, and software revenue contracted 27.3% to $197.5 million. These declines in contrasted with strength in collectibles, which saw around 49.7% YOY growth to $256.1 million.
Burry and Cohen Bet on GameStop, But Analysts Are Staying Away
Despite the renewed headline activity around GameStop, including high-profile share purchases by Michael Burry and CEO Ryan Cohen, Wall Street analysts opt not to cover GameStop. This leaves investors in the dark without information such as average price targets or earnings estimates.
While bets from Michael Burry and Ryan Cohen may signal confidence, the absence of analyst coverage means investors are operating without the usual fundamental benchmarks. Until GameStop delivers sustained operating performance or a clearer strategic direction, the stock is likely to remain driven by sentiment and speculation rather than traditional frameworks.
On the date of publication, Subhasree Kar did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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