dailyloe.com – GameStop shares rose 0.2% in premarket trading Monday amid renewed speculation about a potential acquisition. Investors are closely watching for signals regarding the company’s next strategic move following CEO Ryan Cohen’s expressed interest in buying a publicly listed retail company earlier this year.
Chatter on the retail investor platform Stocktwits was heavy with deal rumors. This occurred despite the platform’s overall sentiment for GME dipping to ‘bearish’ from ‘neutral’ the previous day. Some traders reposted an unverified message attributed to investor Michael Burry claiming he bought more shares.
The original message from Michael Burry was not found on his official social channels or Substack page. Meanwhile, hedge fund manager Steve Eisman expressed skepticism about GameStop’s acquisition plans. Eisman stated the plan is fraught with uncertainty.
GameStop’s total assets, including cash, have swelled to over $10 billion. However, the company had not made a major acquisition until recently. Last month, it acquired approximately $2.7 billion in ‘marketable securities’ instead of a retail company.
The premarket movement followed initial volatility as the session opened. Both Michael Burry and Steve Eisman gained fame for their bets against the U.S. housing market before the 2008 financial crisis. Their diverging views on GameStop highlight the stock’s ongoing controversy.[]
Source: Stocktwits
