Should You Buy GameStop ETFs Following Burry?

Michael Burry, famous for predicting the U.S. housing crash, disclosed that he has been buying shares of GameStop GME, the former meme-stock favorite, as quoted on CNBC. Shares of GME rose 4.4% on Monday. The stock added about 1.5% in the pre-market session.Notably, GameStop offers new and pre-owned gaming consoles, accessories, and titles across physical and digital platforms, along with digital content, prepaid cards, downloadable software, and collectibles.A Long-Term Value Bet, Not a Meme TradeBurry views the investment as a long-term value opportunity, not a play on renewed meme-stock speculation. He expects GameStop may soon trade near 1x tangible book value/1x net asset value, making current levels attractive in his view.Cash-Rich Balance Sheet Although GameStop’s core business remains challenged, the company raised billions of dollars through equity offerings during periods of heightened investor interest, leaving it with a sizable cash reserve.Other Investors Are Buying TooBurry is not alone in backing the stock. CEO Cohen recently purchased 1 million GameStop shares, according to an SEC filing, saying it is essential for CEOs to invest personal funds to align with shareholders, as mentioned in the CNBC article.What Does GME’s Valuation Show?Price/Book (P/B) of GameStop stands at 1.94X, lower than the industry average of 2.02X and the S&P 500 measure of 3.55X. Price/Sales (P/S) of the stock stands at 2.70X, higher than the industry average of 1.62X but lower than the S&P 500 measure of 3.14X.ETFs in Focus While playing the stock itself is an option, you can tap GameStop shares in the exchange-traded funds (ETF) form too. The ETFs include the likes of Grayscale Bitcoin Adopters ETF BCOR, VanEck Video Gaming and eSports ETF ESPO and VanEck Social Sentiment ETF BUZZ. Boost Your Portfolio with Our Top ETF InsightsZacks' exclusive Fund Newsletter delivers actionable information, top news and analysis, as well as top-performing ETFs, straight to your inbox every week.Don’t miss out on this valuable resource. It’s free!Get it now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report GameStop Corp. (GME): Free Stock Analysis Report VanEck Video Gaming and eSports ETF (ESPO): ETF Research Reports VanEck Social Sentiment ETF (BUZZ): ETF Research ReportsThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks