Michael Burry has exited his position in GameStop (GME), just days after the video game retailer surprised markets with a $56 billion offer to acquire eBay (EBAY). The news was reported by The Wall Street Journal. The investor, best known for “The Big Short,” confirmed the sale in a Monday Substack post.
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Forget margin or options. Here's how the pros trade AMZNBurry’s commentary on the proposed deal has drawn attention. While he wrote that “GameStop bid for eBay makes perfect sense,” and that he supports the effort, his analysis was filled with skepticism about the financial logic behind the acquisition.
In his post, Burry said he ultimately chose to sell because the numbers no longer aligned with his original thesis.
Burry’s criticism centered on what he sees as the flawed capital markets strategy behind the bid. He argued that the deal relies on either significant dilution or a large amount of new debt. He also questioned whether the acquisition would meaningfully advance GameStop’s ambitions in e‑commerce or collectibles.
He said that if GameStop truly wanted to challenge Amazon (AMZN), a more logical target would have been Wayfair (W), which he described as having the logistics footprint and cash flow profile to support such a shift.
GameStop shares fell 10.1% on Monday, following the bid announcement, while eBay stock moved 5% higher.
Is GME Stock a Good Buy?
TipRanks’ AI Analyst maintained a Neutral rating on GME stock with a price target of $23.50 per share. The price target suggests about 1.43% downside from current levels.
According to TipRanks’ AI Stock Analysis, GameStop stock scores 54 out of 100. The model highlights “improving profitability, stronger cash flow, and a healthier balance sheet” as positives, but weak technical trends and valuation concerns keep the outlook cautious.
