Why Is ‘The Big Short' Investor Betting Big on Struggling GameStop?

Michael Burry, who won big betting against the housing market in 2007 as actor Christian Bale famously depicted in The Big Short, is now betting on GameStop.Burry's firm Scion Asset Management disclosed this week that it wants the Grapevine-based video game retailer's board of directors to complete a $300 million share buyback plan. His letter to the board said Scion owns 3 million shares of GameStop – or about 3%.Burry bet big on the subprime mortgage industry and was handsomely rewarded. But what does he see in GameStop?Burry told Barron's earlier this week that GameStop's "balance sheet is actually in very good shape." He also pointed to hype around cloud-based video game streaming technology being developed by major tech and game companies and essentially described it as overblown.  Continue reading...