Is "The Big Short's" Michael Burry About to Back Up the Truck on GameStop?

Core Insights - Michael Burry, known for his early investment in GameStop, recognized the company's undervaluation despite its declining brick-and-mortar business [1] - Burry exited his GameStop position in late 2020, missing the peak of the meme stock phenomenon, and has since made several cryptic comments about the stock [2][5] - GameStop's recent earnings report showed a 22% increase in net sales to $972 million, driven by growth in hardware and collectibles [6] - The company doubled its cash on the balance sheet, although this was accompanied by increased debt, and generated $117 million in operating cash flows [7] Company Performance - GameStop's diluted earnings per share rose to $0.31 from $0.04 year-over-year, indicating improved profitability [6] - The stock trades at approximately 23 times forward earnings and 2.4 times forward sales, suggesting a valuation that may be considered reasonable depending on future performance [7] - Concerns remain regarding management's investment in Bitcoin, which may indicate a lack of strategic direction [8] Investor Sentiment - Retail investors are showing renewed interest in Burry's insights through his Substack, particularly regarding his past involvement with GameStop [3][5] - Burry's upcoming posts on GameStop are anticipated to provide further clarity on his views and potential investment strategies [10]