GameStop Jumps as Insider Buys Stack Up - What It Means for Investors

January 26, 2:33 pm

GameStop (GME) is still the ultimate Reddit darling as it's often tops the top mentioned stocks on Reddit - and today, the conversation spiked again as the stock rallied on a rare combo of inside-the-boardroom signals and a high-profile value-style endorsement.

Here’s what happened, why the market cared, and how to think about GME from here.

What’s driving GME right now

1) Ryan Cohen bought 1,000,000 shares in two days

Regulatory filings show GameStop CEO/Chairman Ryan Cohen bought:

• 500,000 shares at a weighted average of ~$21.12
• 500,000 shares at a weighted average of ~$21.60

Across both days, that’s roughly $21.4M of personal capital going into open-market purchases. Markets typically treat large, open-market insider buys as a stronger signal than compensation or option grants - especially when they’re repeated on back-to-back days.

2) A board member also bought shares

On top of Cohen’s purchases, board member Alain Attal also acquired more shares in the company.

When multiple insiders buy in a tight window, investors often read it as shared conviction - or at least a message that leadership is comfortable with the current price level.

3) Michael Burry publicly disclosed he’s buying GME

Michael Burry (of “The Big Short” fame) disclosed that he owns GameStop and has been buying recently, framing it as a long-term value setup rather than a squeeze bet.

That matters because Burry’s involvement tends to attract attention quickly, and it gives the move a “fundamentals” narrative, not just a momentum one.

The underappreciated catalyst: web traffic is rising again

Another bullish sign that we see at AltIndex is that web traffic appears to be ticking up. GameStop typically sees a strong lift in December as holiday shopping ramps, and according to our estimates, gamestop.com hit an all-time high of ~25M visitors in December.

For meme-driven stocks, fundamentals and attention often move together: rising consumer activity can strengthen the “this isn’t just hype” argument, even if it doesn’t immediately translate into higher profits.

What this means for investors

The bullish case

• Insiders are buying size, and doing it repeatedly, which markets usually interpret as confidence.
• A credible long-term framework entered the discussion via Burry’s thesis, potentially attracting a different buyer base than pure momentum traders.
• Traffic signals still look alive, helping the narrative that GameStop retains consumer engagement.

The bear case

• Insider buying isn’t a business model. It can support sentiment, but it doesn’t guarantee execution or earnings power.
• GME remains a volatility magnet. When attention surges, positioning can exaggerate moves both up and down.
• Capital allocation is the real question. Investors are betting that GameStop can deploy resources in a way that expands long-term value — and the market will eventually demand proof.

How we’d track this at AltIndex

This is exactly the type of stock where alternative data can help separate a one-day move from a sustained wave:

• Reddit discussion volume and sentiment: does the surge persist for days/weeks, or fade after the headline?
• Web traffic trend: does activity remain elevated after the holiday period and the news cycle cools?
• Insider activity: do these buys remain isolated, or does the pattern continue?

If those signals stay elevated together, you typically see more durable momentum than when only price is moving.

Bottom line

GameStop’s latest move wasn’t driven by a single headline or Reddit post but by a stack of signals: two-day insider buying from Ryan Cohen, another board member purchase, and a very public long-term endorsement from Michael Burry.

For investors, the setup is clear: sentiment can carry GME in the short run — but the next sustainable leg still depends on execution and what GameStop actually does next. And if history is any guide, the Reddit crowd has shown it can keep GME in “main character” mode far longer than fundamentals alone would justify. As long as GME remains one of the most mentioned stocks on Reddit, there are multiple reasons bulls will stay interested - from momentum and options flow to the ever-present chance of another surprise spike.

Disclaimer: The information provided is for educational and informational purposes only and should not be construed as financial or investment advice. All investments involve risk, and you should conduct your own research or consult a qualified professional before making any investment decisions.

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