GameStop Stock Slides Thursday: Traders Digest Burry, Cohen Buzz

GameStop Corp (NYSE:GME) shares are trading lower Thursday afternoon, giving back some of this week's outsized gains after a sudden burst of volatility.

The dip comes as investors reassess bullish commentary from famed investor Michael Burry and renewed insider buying tied to CEO Ryan Cohen, which helped fuel the earlier rally. Here’s what investors need to know.

• GameStop stock is showing weakness. What’s pulling GME shares down?

Why GME Shares Are Down Today

The weakness appears potentially driven by profit-taking and cooling momentum after the stock's sharp move higher earlier in the week. With much of the near-term optimism already priced in, traders are digesting whether recent buying and strategic comparisons translate into tangible catalysts for the business.

The modest pullback also reflects how quickly sentiment can shift in a meme-stock name like GameStop after a volatility spike.

Michael Burry's GameStop Buying Reignites Buzz

In a recent Substack post, Burry said he has been accumulating shares again, writing that he owns GME and has been buying recently. He framed the stock as trading near one-times tangible book value and pointed to Cohen's capital allocation approach as a key part of the longer-term thesis.

Ryan Cohen Strategy, Insider Purchases, Berkshire Comparisons

Regulatory filings also showed board member Lawrence Cheng buying 5,000 shares for about $114,000, adding to a broader narrative of insider accumulation after Cohen purchased one million shares last week at just over $21 each. That transaction lifted Cohen's stake to roughly 42.1 million shares, or about 9.3% of the company.

Burry has compared Cohen's roadmap to Warren Buffett's early Berkshire Hathaway playbook, arguing GameStop could evolve into a holding company supported by a multibillion-dollar liquidity war chest built through prior share offerings.

GameStop’s Strong Short-Term Technicals

GameStop is currently trading 6.3% above its 20-day SMA and 0.5% above its 100-day SMA, demonstrating some short-term strength. However, shares have decreased approximately 16.40% over the past 12 months and are positioned closer to their 52-week lows than highs.

The RSI is at 65.14, which is considered neutral territory, while the MACD is above its signal line, indicating bullish momentum. The combination of neutral RSI and bullish MACD suggests mixed momentum, indicating that while the stock is currently strong, it may face short-term volatility.

• Key Resistance: $24.50
• Key Support: $22.00

GameStop’s Business Model

GameStop is a U.S. multichannel video game, consumer electronics and services retailer. The company operates across Europe, Canada, Australia and the United States, selling new and second-hand video game hardware, software and accessories through its various retail outlets and e-commerce platforms.

Benzinga Edge Rankings

Below is the Benzinga Edge scorecard for for GameStop, highlighting its strengths and weaknesses compared to the broader market:

• Value Rank: 68.37 — Trading at a moderate premium relative to peers.
• Growth Rank: 96.18 — Indicates strong growth potential compared to the market.
• Momentum Rank: 21.53 — Suggests the stock is underperforming in terms of momentum.

The Verdict: GameStop’s Benzinga Edge signal reveals a mixed outlook. While the strong Growth rank indicates potential, the low Momentum score suggests that the stock may struggle to maintain its current trajectory.

Top ETF Exposure

• AGF US Market Neutral Anti-Beta Fund ETF (NYSE:BTAL): 0.47% Weight
• SPDR S&P Retail ETF (NYSE:XRT): 1.54% Weight
• VanEck Social Sentiment ETF (NYSE:BUZZ): 2.92% Weight

Significance: Because GME carries meaningful weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.

GME Shares Trade Lower Thursday

GME Price Action: GameStop shares were down 2.24% at $23.11 at the time of publication on Thursday, according to Benzinga Pro data.

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