Michael Burry exits GameStop stake over leverage concerns
Michael Burry, the investor known for betting against the housing market in the 'Big Short,' has sold his stake in GameStop. Burry stated that the company's leverage—potentially 7.7 times debt to EBITDA—was incompatible with his 'Instant Berkshire' thesis. The move comes after Burry had previously taken a position in the video game retailer, which gained meme stock status in 2021.
Key facts
- Michael Burry sold his GameStop stake.
- Burry cited leverage of potentially 7.7 times debt to EBITDA.
- He said the leverage was incompatible with his 'Instant Berkshire' thesis.
- GameStop is a video game retailer and meme stock.
- Burry is known for the 'Big Short' bet against housing.
- The sale occurred after Burry had taken a position in GameStop.
Entities
Institutions
- GameStop
Sources
- Quartz —