Familiar Taste! "The Big Short" Blog Ignites Retail Investors' Passion, GameStop Corp. Class A (GME.US) Sparks a New Wave of Meme Stock Speculation Craze.

Notice that on Monday, the stock price of GameStop Corp. Class A (GME.US) rebounded, with fund manager Michael Burry, famous for "The Big Short", writing that he has been buying the stock. As of Monday's close, GameStop Corp. Class A rose by 4.44% to $24.01. In an article published on Substack, Burry expressed confidence in the Chairman and CEO of Conn's, Inc., Ryan Cohen. As online gaming becomes increasingly popular, Conn's, Inc. has been trying various strategies to address the challenges faced by GameStop Corp. Class A's physical store network. Burry wrote, "I believe in Ryan, I like the current setup, governance structure, and the strategy I see." In 2021, after Conn's, Inc. initially bought a large number of shares in the company, the stock price of GameStop Corp. Class A soared and became a emblematic "meme stock". Burry was also an investor at the time, but he later stated that he had sold his shares before the stock price surged dramatically. Over the past year, the company's performance has consistently lagged behind the market and is far below its peak levels during the pandemic. On Monday, the stock briefly rose by 8.8%, marking the largest intraday gain since May and reaching its highest point since October 8th. Trading volume also surged. Options traders rushed into GameStop Corp. Class A bullish options, pushing up the one-month implied volatility to its highest level since early December and expanding the call option skew (the premium of call bets relative to put bets). The total volume of bullish options on Monday rose to its highest point since June 12. So far this year, the stock has risen by approximately 21%, but is still down about 72% from its peak five years ago. The stock price of GameStop Corp. Class A rose, along with the surge in implied volatility and call option skew. Since the frenzy in 2021, the stock has surged multiple times due to social media posts from financial influencers, but has always fallen back afterwards. Investors have been questioning whether the company can successfully transition from physical shopping to online shopping. In his new article, Burry reviewed the company's history and mentioned the company's focus on Bitcoin and collectibles, as well as the store closure initiatives under the leadership of Conn's, Inc. He also emphasized GameStop Corp. Class A's "strong cash flow", massive net operating losses ("which will provide tax protection for revenue in the foreseeable future"), and the company's very low capital expenditure. "Given that its tangible asset value provides downside protection, being long on GameStop Corp. Class A is almost the most asymmetric investment in today's US equities," Burry wrote. He added, "I am willing to hold for the long term." Burry speculated that Conn's, Inc. may seek acquisitions, which could serve as a catalyst for the stock price, and pointed out that Conn's, Inc. increased its holdings in the company earlier this month.