“Big Short” Investor Michael Burry is Betting on GameStop’s Revival — Time to Buy?

Core Viewpoint - Michael Burry is re-investing in GameStop, expressing confidence in Ryan Cohen's leadership and the stock's valuation near tangible book value, following Cohen's recent purchase of 1 million shares, which has positively impacted GameStop's stock price [4][7] Company Performance - GameStop's net sales for Q3 fell by 4.6% to $821 million, missing estimates of $987 million [6][7] - Hardware and accessories sales dropped by 12% year-over-year to $367.4 million, while software sales plunged by 27% to $197.5 million [6][7] - Collectibles sales surged by 50% to $256.1 million, contributing to an operating income of $41.3 million, representing 31% of GameStop's total revenue [7] Market Context - GameStop became a symbol of the meme stock movement in early 2021, with its price rising from under $5 to a peak of $86.88 per share, driven by retail investors and social media [5] - The stock has since fallen 72% from its peak, currently trading around $24, as the company faces challenges from a shift towards digital downloads and streaming, impacting demand for physical products [6]