- Michael Burry’s bullish bet on GameStop (GME) has sparked renewed investor interest, which has lifted the stock price notably despite past volatility.
- Insider buys, including CEO Ryan Cohen’s 1M share purchase, show confidence in GameStop’s future and have boosted the stock’s recent rise.
- GameStop’s high short interest has created potential for volatility, leaving traders watching closely for a potential short squeeze.
GameStop (GME) stock is up by over 8 percent today, after infamous investor Michael Burry’s bullish investment. This move, coupled with strong insider buying from CEO Ryan Cohen’s have sparked renewed interest in the company.
Michael Burry’s Bullish Stance Lifts GameStop (GME) Stock
Investor Michael Burry purchased a lot of GameStop (GME) stock recently. This has pushed GME’s stock up significantly, with a spike of more than 8%.
Burry is a long-term value investor known for his successful investment in shorting the housing market in 2008. Therefore, adding GME shares to his portfolio over the past few weeks is not a short-term speculative investment.
Burry’s rationale for investing in GME rests primarily on its fundamentals, most notably on the company’s CEO, Ryan Cohen. Burry believes GME is currently trading at a price close to its tangible book value and, therefore, undervalued.
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As a long-term investor, Burry has created a renewed sense of excitement in GME, which has pushed GME to its highest level in three months.
The investment community and the stock market are closely monitoring his actions. Because of his history, Burry’s view is that GME has the potential to become a value play with a new level of credibility in its ongoing transformation.
Insider Activity and Increased Confidence in GameStop’s Future
In addition to Burry’s purchase of shares, several insiders have entered into GameStop’s current surge. Including the current CEO of GameStop, Ryan Cohen, who is well known for his turnaround strategies.
The CEO also recently completed the purchase of 1 million additional shares of the company. This move reinforces the alignment he has with the company’s shareholders.
On top of that, director Lawrence Cheng purchased 5,000 shares of GME on January 23, 2026, pushing his total shareholding from 83,000 to 88,000.
High Short Interest Adds Volatility and Speculation
GameStop has always been recognized as a highly volatile stock. Therefore, today’s price spike is simply another example of this instability.
A significant factor impacting today’s move is the number of shares of GME currently being shorted. The number currently stands at approximately 65-68 million shares shorted, which equals approximately 16% of GME’s total float.
Consequently, the heightened level of short interest increases the potential for extreme volatility to occur.
Previously, there have been instances in the past where GameStop had undergone forgettable amounts of short squeezes. Especially when retail investors coordinated with one another to purchase shares and forced hedge funds to repurchase shares.
This ultimately creates new highs for the share price. Although Dr. Michael Burry has expressed that he made his investment based on fundamentals and not the anticipation of a short squeeze, the large amount of short interest remains as a candidate to provide additional swings in value.
High levels of volatility are also expected due to GameStop’s affiliation with the cryptocurrency space. Especially GameStop’s recent foray into Bitcoin and the company’s decision to transfer all of its Bitcoin holdings to Coinbase.
This has caused a lot of speculation by the trading community as GameStop decided to discontinue its Bitcoin strategy. The news it created and the company’s affiliation with “digital assets” have created further uncertainty. This has led to a high degree of volatility within GME.