Michael Burry Invests in GameStop: Meme Stock Comeback and Market Impact

GameStop, the original meme stock, just received a major boost from Michael Burry, the famed investor behind The Big Short. Burry, former founder and CEO of Scion Asset Management and best known for predicting the 2008 financial crisis, revealed in his Substack newsletter that he has recently been buying shares of GameStop (GME), a $10 billion video-game and trading-card retailer. His disclosure adds credibility to the company’s turnaround story and reignites investor interest in the meme stock phenomenon.

Michael Burry’s support could strengthen investor confidence in GameStop at a critical time. The company has faced declining sales and ongoing challenges in reinventing its business model, leading to store closures and uncertainty about its long-term growth. Burry’s reputation as a contrarian investor who successfully predicted the 2008 financial crisis adds weight to his endorsement, potentially signaling to the market that GameStop has untapped potential despite its struggles.

GameStop shares climbed more than 4% Monday, extending a rally that has lifted the stock about 20% in 2026. Despite this momentum, the shares remain far below the early 2021 highs that defined the peak of the meme-stock craze.

In his Substack post, Michael Burry reportedly described GameStop CEO Ryan Cohen’s current business as “crappy,” suggesting Cohen is leveraging the meme-stock phenomenon to raise cash while positioning the company for a major acquisition of a profitable, growing enterprise.

Meanwhile, GameStop has pursued new strategies to reinvent itself, including expanding its collectibles business and investing in Bitcoin. These moves reflect ongoing efforts to diversify revenue streams and reshape its identity beyond traditional retail.

GameStop shares rose last week after a regulatory filing revealed CEO Ryan Cohen purchased 1 million shares, signaling confidence in the company’s future. This move added momentum to the stock’s rally and reinforced investor interest in the original meme stock.

Meanwhile, Michael Burry has shifted his attention to “better things” after stepping back from his hedge fund operations. His Substack, Cassandra Unchained named after the persona he has long used on X has grown to more than 200,000 subscribers. According to its description, the platform is now Burry’s sole professional focus, offering insights into his market views and investment strategies.

Michael Burry’s investment in GameStop adds credibility to the meme stock’s ongoing rally, even as the company struggles to reinvent itself amid falling sales and store closures. His backing, combined with CEO Ryan Cohen’s recent share purchase, signals renewed confidence and potential for strategic moves that could reshape the retailer’s future. While GameStop remains far below its 2021 highs, the combination of investor support and new business initiatives keeps the stock firmly in the spotlight.