Core Insights - Michael Burry, a notable investor known for predicting the 2008 financial crisis, has expressed confidence in GameStop (GME) by revealing his ownership and recent purchases of the stock [1][2]. Company Performance - GameStop has faced challenges in reinventing its business model due to declining sales, leading to store closures [3]. - Following Burry's announcement, GameStop shares increased by over 4% on Monday, contributing to a rally that has seen the stock gain approximately 20% of its value in 2026, although it remains significantly below the highs of early 2021 [3]. Management and Strategy - Burry has criticized GameStop CEO Ryan Cohen, suggesting that the current business is poorly managed and that Cohen is leveraging the meme stock phenomenon to raise capital for future investments in more promising ventures [4]. - GameStop is attempting to redefine its strategy by expanding its collectibles business and investing in Bitcoin [4].