Investing.com - Shares of GameStop (NYSE:GME) surged in midday trade on Thursday after Barron’s reported that investor Michael Burry is long on the stock.
The money manager, depicted in Michael Lewis’ book “The Big Short” as one of the first to short subprime mortgages before the financial crisis, holds about 3 million shares through his firm, according to Barron's.
GameStop jumped nearly 14% midday. It had lost nearly 70% of its value this year.
Burry told Barron's that the struggling gaming company still has potential as Sony (NYSE:SNE) and Microsoft's (NASDAQ:MSFT) consoles will have a physical drive, extending “GameStop’s life significantly.”
“Technical factors driving the stock to lows has created an opportunity for substantial buybacks at below private market prices,” he said.
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