Investor Michael Burry has disclosed a long position in GameStop (GME), highlighting what he sees as the company’s untapped value and strategic optionality with CEO Ryan Cohen at the helm.
Writing on his Substack, Burry framed GameStop not as a typical retail business, but as a cash-generating platform with a young, disciplined leadership team and the optionality to deploy billions in a patient, intelligent manner.
Burry’s analysis underscores the ongoing transformation under Cohen, who has been strategically reducing store count, divesting non-core assets, and leveraging warrants and 0% convertible debt to raise capital. These moves have fortified GameStop’s balance sheet, now boasting roughly $8.8 billion in cash and $4.4 billion in interest-free debt, while sustaining tangible book value growth amid a shrinking operating business.
Burry also examines past short squeezes and the company’s approach to net operating losses, which can shelter future income. While Burry expresses skepticism about another “mother of all short squeezes,” he views Cohen’s measured capital allocation and potential acquisitions as key drivers of shareholder value.
“The value is not in another big short squeeze,” Burry wrote, but in the optionality of billions in the hands of a capable and patient management team.
“I own GME. I have been buying recently. I expect I am buying at what may soon be 1x tangible book value / 1x net asset value,” Burry added.
On Monday, GME pushed up 8.5% as it now finds itself higher on the 2026 trading year by 23.5%.