Core Insights - Michael Burry, known for his role in The Big Short, sold his entire GameStop position in late 2020, missing a significant short squeeze in January 2021, which could have resulted in a billion-dollar gain [1][2] - Burry's recent analysis titled "GameStop, The Prequel" discusses a unique market phenomenon involving retail traders and a gamma squeeze [2] - GameStop currently has $8.8 billion in cash and a market cap of $9.9 billion, despite a 27% decline in stock value in 2025 [3] Financial Performance - In fiscal Q3 of 2026, GameStop reported an operating income of $41 million, a significant improvement from a $33 million loss in the previous year, with net income rising from $17 million to $77 million [5] - The company ended Q1 with nearly $9 billion in cash and marketable securities, up from $4.6 billion a year ago [5] - Cost-cutting measures led to a 21% reduction in selling, general, and administrative expenses, decreasing from $282 million to $221 million year-over-year [6] Strategic Changes - GameStop is exiting underperforming international markets, including Canada and France, following previous exits in Germany and Italy, which has improved profitability in remaining locations [7] - The company's business model has been revamped under Ryan Cohen's leadership, with Burry noting that the current situation is similar to his 2018 thesis but with significantly larger numbers [4]
Is Michael Burry Going to Supercharge GameStop Stock Again in 2026?