Before meme stocks skyrocketed over the past two years, Michael Varley had GameStop (GME) in his portfolio. Burley began investing in GameStop in 2018, arguing that the company’s stock was overvalued. But he pulled out before the stock could climb to a meme-like $130 thanks to RoaringKitty. At the time of writing, GME is at $22 and is one of the most polarizing stocks in the US market.
Michael Burley recently pointed out that even if it had held out, he would have sold long before it hit $120. Burry said GameStop had advantages but was concerned that it could not effectively leverage them and was “blinded by what it saw as execution risks.” He added, “I went to a GameStop store to see if there was something wrong with me, but to no avail. Even things that weren’t on sale appeared to be on sale.” Currently, the stock is reeling from an unsustainable Bitcoin investment strategy, and the forecast for 2026 is bearish.
At the time of writing, GME is trading near the bottom of its 52-week range and below its 200-day simple moving average. GameStop (GME) faces significant challenges, including a 4.5% decline in net sales and concerns about its core retail business. Analysts are skeptical about the company’s long-term growth prospects, even though the stock recently rose 6% after hiring a new spokesperson. Analysts have a bearish outlook, reflecting their skepticism about GME’s future, with a consensus rating of “Reduce” and a 40% downside expected.
Wedbush maintains an Underperform rating on GameStop (GME) and a $13.5 price target for the next 12 months. This suggests a potential downside from the current market price of $22.09. Michael Burry missed out on explosive profits during the GME meme rally, but those profits would have almost completely disappeared by this time, and even by 2026.
