"Of course, the notable bet has caused the name that exploded onto the scene during the 2021 meme stock craze to be back in the headlines, and while there's a non-zero chance for another meme stock rally, it certainly sounds like Burry is playing the long game on a name that stands out as a real value stock according to a number of metrics."
"Even if Roaring Kitty and the rest of Reddit's r/WallStreetBets aren't ready to give shares of GameStop another go for a shot at a short squeeze, I do think there is a path higher for the stock. Of course, when you hear of GameStop stock, it's hard not to think about a meme surge. But Burry is "not counting on a short squeeze," and neither should investors interested in the name."
"And while a sudden pop could certainly happen at any time, I wouldn't seek to trade the stock now that a Michael Burry premium of sorts has been priced in. Arguably, such a jump has already happened. Shares have been on the ascent in the past week, now up close to 12%, bringing the monthly gain to around 18%. Could it be that the relative value that Burry may have recognized is already corrected?"
Michael Burry has been buying GameStop shares again, driven largely by a low price of admission and apparent value metrics. The company is led by CEO Ryan Cohen, whose stewardship contributes to the perception of strategic improvement. The stock retains meme-stock associations, but the current thesis centers on long-term value rather than a short squeeze. Burry reportedly is not counting on a short squeeze, and recent gains—about 12% in the past week and roughly 18% for the month—may reflect a Michael Burry premium already priced into the shares. The outlook emphasizes modest valuation and strategic direction over momentum trading.
Read at 24/7 Wall St.
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