Markets
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Luke Kawa

Michael Burry says he’s selling “all or some” of his GameStop position after its bid for eBay

GameStop shareholder Michael Burry has some thoughts about the retailer’s offer to buy eBay for $55.5 billion.

But the tweet and opening line of the latest article from the hedge fund manager of “The Big Short” fame turned Substacker may muddle his overall message:

*BURRY SAYS GAMESTOP BID FOR EBAY ‘MAKES PERFECT SENSE’

From our perch, Burry’s headlined comment that the bid “makes perfect sense” seems to be imbued with a hefty dose of sarcasm, and comes in a piece that’s full of skepticism about how the financials would work. The more important thing to highlight is that he’s decided to “certainly sell to an extent, perhaps all or some” of his GameStop position this week.

Consider the context of the “perfect sense” remark:

“Still, at the end of the day, this play for eBay makes perfect sense.

Wall Street does indeed mistake debt for creativity, and does so constantly.

I of all people should have known.

Charlie Munger once said, ‘When a manager with a reputation for brilliance tackles a business with a reputation for bad economics, it is the reputation of the business that remains intact’.”

Burry appears to be saying this “makes perfect sense” because folks in financial circles will think it is smart, not because it actually is.

To be fair, Burry also wrote, “I do support the effort,” but also offers a lot of negative commentary about the bid.

For instance:

“Neither does this seem revolutionary or ground-breaking in nature. More dilution, or more debt — really, the capital markets strategy here could not be more pedestrian.”

“If Ryan really wanted to compete with Amazon, he would have acquired Wayfair (70% of its own last mile deliveries and warehouses all over) along with a cash flow machine and a bunch of float. I heard someone was peddling such a deal back in early February.”

“If GameStop wants to do it [editor’s note: dominate collectibles and used goods] with billions of interest expense and all manner of covenants restricting its movements, it will not be breaking new ground. It will be trotting in well-worn ruts on the road to capitalist Hell.

No new ground has been broken yet. To truly break new ground, Ryan has to execute and succeed in this transformation from this starting position, saddled with debt.”

Burry would have preferred if GameStop elected to buy a position in or bid for a company that he highlighted as a more appropriate target, including the aforementioned Wayfair.

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Max Knoblauch

Take-Two climbs on BofA note that “GTA 6” will likely come out with an $80 price tag

“Grand Theft Auto VI,” Take-Two’s hotly anticipated sixth installment in its “Grand Theft Auto” franchise, will likely release at an $80 price point, according to a new Bank of America note.

After attending the Entertainment Software Association’s iicon event last month, BofA wrote, “What we heard leads us to believe GTA 6 will cost $80, rather than our previously assumed $70 per unit.”

Shares of Take-Two are up about 4% on Monday, good enough for one of its biggest trading days of 2026. The stock is still down about 12% year to date.

An $80 price for the year’s biggest game would further usher in the higher industry price ceiling, which climbed to $70 around 2020 following roughly 15 years at the $60 level. Nintendo’s “Mario Kart World” was the first to test the $80 price tag last year, though its effectiveness as a trial might be limited since the game was bundled with the Switch 2 console.

Given the demand for “GTA 6,” a follow-up 13 years in the making, industry rumors have speculated that its launch price could be as high as $100.

Investors will be closely watching Take-Two’s earnings call later this month for any official “GTA” pricing information and confirmation of its November release date.

Luke Kawa
2h
Berkshire Hathaway is the ultimate anti-AI stock

Berkshire is a rare breed in today’s market: a megacap US stock that doesn’t really have a big footprint in AI.

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markets
Helena Cheng

BlackBerry surges as software reinvention spurs retail attention

This message is brought to you by the mid-2000s: BlackBerry shares are surging in early trading.

But the once iconic smartphone maker finds itself back in the spotlight through software, not hardware.

The move follows renewed attention to its QNX software business after a Wall Street Journal report highlighted the unit’s growth, particularly in the automotive industry. This division accounts for roughly half of the company’s revenue, with the technology now embedded in roughly 275 million vehicles, powering features like driver assistance and infotainment.

BlackBerry reported its Q4 earnings in early April, with revenue of $156 million surpassing the top end of its guidance. That was fueled by stronger-than-expected sales across both its QNX and Secure Communications divisions. Shares then spiked later in the month after BlackBerry enhanced its partnership with Nvidia by integrating QNX with the chip designer’s robotics development platform.

The stock is up more than 50% year to date, making it one of the few stocks to go gangbusters thanks to its performance in software, an industry bedeviled by the competitive threat from AI.

Its recent hot run has come alongside more bullish activity in options markets. Less than half an hour into today’s session, more than 31,000 calls have already changed hands, roughly half of the full-day average over the past 20 days. The name also appears to be attracting retail attention, being one of the 15 most referenced tickers on the r/WallStreetBets subreddit over the past 12 hours, per SwaggyStocks.

markets
Helena Cheng

Norwegian Cruise Line sinks after outlook cut tied to higher fuel costs, weaker demand

Norwegian Cruise Line shares slid after the cruise operator cut its full-year outlook, overshadowing a first-quarter earnings beat.

The company lowered its guidance for full-year adjusted earnings per share to $1.45 to $1.79, down from its previous forecast of $2.38. It now sees adjusted EBITDA of $2.48 billion to $2.64 billion, below the company’s previous forecast of $2.95 billion and the $2.79 billion analysts were expecting.

The cut reflects a mix of macro and company-specific pressures. Higher fuel costs tied to the conflict in the Middle East are weighing on margins, while demand for European travel has softened and bookings remain below target level.

Norwegian said it entered 2026 “behind its targeted booking curve,” with geopolitical disruptions further slowing its ability to close that gap. The stock had already been under pressure, down more than 16% this year heading into the results.

On Monday morning before the open, the stock was down 6.7%.

The company’s first-quarter adjusted EPS came in at $0.23, topping estimates, but the beat was overshadowed by the guidance cut.

CEO John Chidsey said the company has already begun “taking decisive actions to strengthen execution and accountability,” including cost cutting and efficiency measures aimed at offsetting near-term pressures.

Shares of other cruise lines, including Carnival and Royal Caribbean, traded slightly lower after the report.

Separately, three people have died and at least three others are sick after a suspected outbreak of hantavirus aboard a cruise ship sailing in the Atlantic Ocean, the World Health Organization said Sunday. Though that ship isn’t operated by one of the large publicly traded cruise liners, the news poses a potential reputational risk for the industry.

Luke Kawa
14h
GameStop submits offer to buy the much larger eBay for $55.5 billion

The OG online auction platform gets a big bidder.

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