What Happened?
Shares of video game retailer GameStop (NYSE: GME) jumped 5.2% in the afternoon session after famed investor Michael Burry disclosed he had been buying its shares. Burry, known for his depiction in 'The Big Short,' revealed in a Substack post that he had been purchasing GameStop stock as a long-term value investment. This announcement fueled a rally that was already supported by strong insider confidence.
After the initial pop the shares cooled down to $24.01, up 4.4% from previous close.
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What Is The Market Telling Us
GameStop’s shares are very volatile and have had 22 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 4 days ago when the stock gained 6.3% on the news that the stock's positive momentum continued as CEO and Chairman Ryan Cohen purchased another large block of shares, marking his second significant buy in two consecutive days. The move continued the stock's rise from the previous session.
Regulatory filings revealed Cohen bought 500,000 shares at around $21.60 each, a day after purchasing another 500,000 shares at $21.12 per share. In total, Cohen spent approximately $21.4 million of his own money over the two-day period. These purchases increased his total ownership in the video game retailer to about 9.3% of the company. Investors often see such substantial insider buying as a strong vote of confidence in a company's future from its top leader.
GameStop is up 16.4% since the beginning of the year, but at $24.01 per share, it is still trading 31.4% below its 52-week high of $35.01 from May 2025. Investors who bought $1,000 worth of GameStop’s shares 5 years ago would now be looking at an investment worth $648.95.
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