Before its meme-stock surge in the last two years, Michael Burry has GameStop (GME) in his portfolio. Burry started investing in GameStop back in 2018, calling its shares overvalued. However, he was out before the stock hit a meme-like rally to $130 thanks to RoaringKitty. At press time, GME sits at $22 and is one of the more polarizing stocks on the US market.
Michael Burry recently noted that, even if he had held on, he would have sold off long before the $120 mark hit. Burry noted that he was “…blinded by what I saw as execution risk”, concerned that GameStop had advantages, but could not use them effectively. Further, he went on to add, “I visited a GameStop store to make sure I was not crazy. It did not work. Even the stuff that was not on sale looked like it should be on sale.” Nowadays, the stock is reeling due to a Bitcoin investment strategy that was not sustainable, and 2026 forecasts are now bearish.
At press time, GME is trading near the bottom of its 52-week range and below its 200-day simple moving average. GameStop (GME) is facing significant challenges, including a 4.5% decline in net sales and concerns over its core retail business. Despite a recent 6% stock price increase after hiring a new spokesperson, analysts express skepticism about long-term growth prospects. Analysts have a bearish outlook, with a consensus rating of ‘Reduce’ and expectations of a 40% downside, reflecting skepticism about GME’s future.
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Wedbush maintains an Underperform rating on GameStop (GME) with a $13.5 price target over the next 12 months. This suggests a potential downside from the current market price of $22.09. While Michael Burry missed out on explosive profits during GME’s meme rally, those would have been almost entirely erased by this time and further by 2026.