Michael Burry Reflects on GameStop Miss as Stock Struggles Amid Bitcoin Strategy Fallout
Michael Burry's early GameStop investment serves as a cautionary tale in market timing. The Scion Asset Management founder acquired GME shares in 2018 but exited before the meme-stock frenzy propelled prices to $130. "I was blinded by execution risk," Burry admitted, recalling store visits that revealed deteriorating merchandise quality. His prescient exit underscores the difficulty of predicting retail investor manias.
GameStop now faces mounting headwinds, with shares languishing near 52-week lows. A 4.5% sales decline compounds troubles from an ill-fated Bitcoin venture. While a 6% bounce followed new spokesperson announcements, analysts maintain 'Reduce' ratings anticipating 40% further downside. The stock trades below its 200-day moving average—a technical confirmation of bearish momentum.
