Felice Maranz Tue, January 27, 2026 at 4:36 AM GMT+8 2 min read

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(Bloomberg) -- Shares of GameStop Corp. rallied on Monday after Michael Burry, the money manager made famous by wrote that he has been buying the stock.

In a post on Substack, Burry expressed his confidence in the company’s chairman and chief executive officer, Ryan Cohen, who has tried a number of strategies to confront the challenges facing GameStop’s network of physical stores as online gaming becomes more popular.

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“I believe in Ryan, I like the setup, the governance, the strategy as I see it,” Burry wrote.

GameStop soared to enormous gains back in 2021 and became the iconic meme stock after Cohen initially took a big stake in the company. Burry was also an investor at the time, but he later said that he had sold the stock before its dramatic ascent. The company has been lagging the broader market over the last year and is far below the pandemic-era peak.

The stock advanced as much as 8.8% on Monday, the most intraday since May, to touch the highest since Oct. 8, while volume soared. Options traders piled in to GameStop calls, pushing one-month implied volatility to the highest since early December and widening the call skew, or premium of bullish bets over bearish. Total call volume rose Monday to the highest since June 12.

Shares have gained around 21% so far this year, but they’ve shed about 72% since peaking five years ago.

The stock has risen sharply at a number of points since the 2021 craze, often due to social media posts from financial influencers. But it has fallen back each time. Investors have questioned whether the company can successfully make the transition from physical to online shopping.

Burry’s new post offered a history of the company and wrote about its focus on Bitcoin and collectibles, and the store closures made under Cohen’s watch. He also highlighted GameStop’s “strong cash flow,” its substantial net operating losses, “which are sheltering income for the foreseeable future,” and the company’s minimal outlays on capital expenditures.

“With the downside protected by its tangible asset value, being long GameStop is almost as asymmetric as it gets these days in US common stocks,” Burry wrote.

“I am willing to hold long-term,” he added.

Burry speculated about the possibility that Cohen might look for an acquisition, which could serve as a catalyst for the stock, and noted Cohen boosted his stake in the company earlier this month.

--With assistance from David Marino.

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