The Michael Burry GameStop 2026 story took centre stage on 26 January 2026. The legendary investor revealed through Substack that he has been buying shares. This marks his return to the video game retailer five years after selling before the epic meme stock surge.
   
Figure 1: A GameStop retail store exterior in the United States, reflecting the Company’s physical store footprint amid its transformation efforts. (Source: Getty Images)
GameStop Corp shares jumped 8.8 per cent during Monday trading after the disclosure. Burry wrote that he believes in Chairman Ryan Cohen and the Company’s strategic direction. The GameStop stock surges 2026 continued with volume reaching the highest level since June 2024.
What Makes GameStop Stock Surges 2026 Different From 2021?
Burry emphasised this is a long-term value play rather than meme stock speculation. The investor stated he is not counting on a short squeeze to realise long-term value. This distinguishes the current Michael Burry GameStop 2026 position from the 2021 retail trading frenzy.
GameStop became the iconic meme stock in 2021 when retail traders forced massive hedge fund short-covering. Burry was an investor then but sold before the dramatic ascent. The shares soared to extraordinary heights before falling back as speculative interest waned.
GameStop Stock Prediction 2026: Burry’s Asymmetric Bet Explained
Burry highlighted several factors supporting his GameStop stock prediction 2026 outlook. The Company maintains strong cash flow according to his analysis. Substantial net operating losses are sheltering income for the foreseeable future.
Figure 2: Inside a GameStop store showing video games, consoles and merchandise, highlighting the retailer’s legacy brick-and-mortar business model. (Source: Wikipedia)
GameStop has minimal outlays on capital expenditures providing financial flexibility. Burry wrote that with downside protected by tangible asset value, being long GameStop is almost as asymmetric as it gets in United States common stocks. The risk-reward profile appeals to value investors willing to wait.
What Did Ryan Cohen Buy and Why Does It Matter?
Cohen purchased one million GameStop shares earlier in January 2026 according to Securities and Exchange Commission filings. The 21 January 2026 disclosure noted it is essential for the chief executive officer to buy shares. This strengthens alignment with stockholders according to Cohen’s statement.
Figure 3: Ryan Cohen, Chairman and Chief Executive Officer of GameStop Corp, who continues to lead the Company’s strategic transformation. (Source: BWBX)
The insider buying preceded Burry’s public disclosure by less than one week. Cohen has tried multiple strategies to confront challenges facing the physical store network. GameStop began buying Bitcoin last year similar to Strategy formerly known as MicroStrategy.
How Did Markets React to Michael Burry GameStop 2026 News?
GameStop shares advanced as much as 8.8 per cent on 26 January 2026. The stock reached the highest level since 8 October 2025, with volume soaring. Options traders piled into GameStop calls, pushing one-month implied volatility to the highest since early December 2025.
Figure 4: Michael Burry, the investor made famous by The Big Short, who disclosed renewed buying of GameStop shares in January 2026. (Source: Money Wise)
The call skew widened, indicating a premium of bullish bets over bearish positions. Total call volume rose on Monday to the highest since 12 June 2025. Shares closed at USD 24.01 with after-hours trading pushing to USD 24.64.
GameStop Stock Performance: The Five-Year Journey
GameStop shares have gained around 21 per cent in 2026 as of 26 January 2026. The stock currently trades around USD 25 per share but remains well below pandemic-era peaks. Shares have declined approximately 72 per cent since peaking five years ago in 2021.
Figure 5: GameStop one-month implied volatility and call-put skew, showing a surge in bullish options activity following Michael Burry’s disclosure. (Source: Yahoo Finance)
The Company has been lagging the broader market over the last year. The stock has risen sharply at multiple points since 2021, often following social media posts from financial influencers. The shares fell back each time as investors questioned the transition from physical to online operations.
What Are the Challenges Facing GameStop’s Business?
GameStop operates a network of physical stores as online gaming becomes more popular. The Company faces declining foot traffic as gaming increasingly shifts to digital downloads. Investors have questioned whether a successful transition to e-commerce is possible.
Cohen has closed stores under his watch as part of the transformation strategy. The core business faces ongoing headwinds from industry digitalisation trends. Future value creation depends on successful capital deployment and potential acquisitions, according to Burry’s thesis.
About GameStop Corp
GameStop Corp is a United States-based video game and gaming merchandise retailer. The Company operates through retail stores and e-commerce platforms. GameStop offers new and pre-owned gaming products, including hardware, software and accessories.
The retailer has expanded into collectibles, apparel and other gaming lifestyle products. Ryan Cohen serves as Chairman and Chief Executive Officer. The Company is headquartered in Grapevine, Texas and trades on the New York Stock Exchange.
GameStop maintains approximately 4,000 stores primarily in shopping malls and strip centres. The Company has faced declining sales as gaming shifts to digital downloads. Management is pursuing transformation through cash preservation, Bitcoin holdings and collectibles expansion.
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Final Thoughts
Michael Burry GameStop 2026 investment brings renewed attention to the iconic meme stock. The Big Short investor’s backing provides fundamental credibility beyond social media speculation. GameStop stock surges 2026 demonstrate continued market sensitivity to influential investor actions.
Burry’s focus on tangible asset value and asymmetric risk-reward suggests patience will be critical. Ryan Cohen’s capital deployment decisions and potential acquisition activity will determine success. The GameStop stock prediction 2026 hinges on the execution of the transformation strategy.
Whether Burry’s conviction proves prescient remains to be seen. The convergence of value investing principles and meme stock dynamics creates a fascinating investment case. Investors will monitor developments closely in the coming quarters.
FAQs
Q1. Why did Michael Burry invest in GameStop again?
Ans. Burry cited confidence in Ryan Cohen’s leadership, strong cash flow, net operating losses sheltering income, and asymmetric risk-reward with tangible asset value providing downside protection.
Q2. How much did GameStop stock rise after Burry’s announcement?
Ans. GameStop shares advanced as much as 8.8 per cent on 26 January 2026, reaching the highest level since 8 October 2025.
Q3. What is different about this GameStop investment compared to 2021?
Ans. Burry emphasised this is a long-term value play based on fundamentals rather than speculation on a short squeeze or meme stock activity.
Q4. What did Ryan Cohen buy recently?
Ans. Cohen purchased one million GameStop shares in January 2026 according to Securities and Exchange Commission filings dated 21 January 2026.
