Gamestop is a company that Big Short investor Michael Burry has been bullish on for a while. And recently he has been proven correct, in spectacular fashion, with shares jumping from $4 earlier in the year to close to $15. 


Far from derailing its performance, 2020 has caused more people to shop at the maligned console retailer. Chewy founder Ryan Cohen purchased 9% of the company's shares in August 2020, causing a stock price spike which many assumed would be temporary. 


However, the recent accouncement of a profit sharing agreement with microsoft, timed to coincide with the release of its next generation X box X console, has enabled Gamestop to jump start the momentum of this year's burgeoning console cycle. 


This agreement enables users to spread the cost of a new console while accessing other services and support. It sees customers purchasing a monthly payment plan which over 24 months exceeds the cost of an entire extra console. It could mean Gamestop generates an additional 180 million dollars in revenue over the next four years. It is likely that other partners such as Nintendo and Sony will seek to offer similar profit sharing structures to Gamestop in a bid to retain its customers. 


We dive into these developments, look at why the short squeeze theory is dead in the water, and examine future opportunities for this company with Chewy's Cohen at the helm. 


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