Overview
- Michael Burry said in a Substack post on Monday that he owns GameStop and has been buying shares at roughly one-times tangible book value.
- GameStop shares rose intraday by about 7% to 9% following the disclosure, with volume and short-dated call-option activity surging to multiples of recent averages.
- CEO Ryan Cohen recently purchased 1 million shares in the open market at just over $21, increasing his stake to about 42.1 million shares, or roughly 9.3% of outstanding stock.
- GameStop’s board approved a performance-based plan that could grant Cohen options on about 171.5 million shares tied to aggressive long-term targets, with a shareholder vote anticipated in the coming months.
- A new filing showed director Lawrence Cheng bought 5,000 shares, and market gauges show near-term strength alongside overbought signals that could temper the rally.