Key Takeaways
- • Michael Burry reiterated his bullish stance on Build-A-Bear Workshop, arguing the struggling US retailer could face a short squeeze as bearish bets reach elevated levels, according to Business Insider.
- • Approximately 25% of Build-A-Bear's publicly available shares are sold short, with short interest equal to almost nine days of average trading volume.
- • Build-A-Bear shares have fallen more than 50% in 2026, from a peak above $75 last year to roughly $25.
- • Burry, who first disclosed a long position in August, cites a decade-long restructuring that has taken the retailer to 662 locations across 37 countries, with 129 added over the past two years.
- • Burry frames depressed valuations, operational improvements and high short interest as an attractive setup, while weakening consumer demand and discretionary spending pressure remain headwinds.
Summary
Investor Michael Burry has reiterated his bullish position in Build-A-Bear Workshop, arguing that the US retailer could be positioned for a short squeeze as bearish bets against the company reach elevated levels, according to a report by Business Insider. Burry, best known for predicting the 2008 financial crisis, highlighted that approximately 25% of Build-A-Bear's publicly available shares are sold short, with short interest equivalent to almost nine days of average trading volume. Such positioning could leave short sellers exposed to significant losses if an unexpected recovery forces them to close their positions.
Build-A-Bear shares have fallen by more than 50% in 2026, declining from a peak above $75 last year to approximately $25. Despite the selloff, Burry, who first disclosed a long position in August, believes the market is overlooking the company's underlying operational improvements and growth potential.
In a recent Substack post, Burry pointed to Build-A-Bear's decade-long restructuring and expansion strategy, which has grown the retailer to 662 locations across 37 countries. The company has added 129 locations over the past two years, increasingly relying on lower-capital formats such as wholesale partnerships and smaller retail outlets.
Burry argues that depressed valuations, operational improvements and substantial short interest together create an attractive opportunity, even as weakening consumer demand and pressure on discretionary spending continue to weigh on the retail sector. The thesis also underscores the risks facing hedge funds with concentrated short positions, where improving fundamentals could trigger rapid covering and amplify share price gains.
Build-A-Bear shares have fallen by more than 50% in 2026, declining from a peak above $75 last year to approximately $25. Despite the selloff, Burry, who first disclosed a long position in August, believes the market is overlooking the company's underlying operational improvements and growth potential.
In a recent Substack post, Burry pointed to Build-A-Bear's decade-long restructuring and expansion strategy, which has grown the retailer to 662 locations across 37 countries. The company has added 129 locations over the past two years, increasingly relying on lower-capital formats such as wholesale partnerships and smaller retail outlets.
Burry argues that depressed valuations, operational improvements and substantial short interest together create an attractive opportunity, even as weakening consumer demand and pressure on discretionary spending continue to weigh on the retail sector. The thesis also underscores the risks facing hedge funds with concentrated short positions, where improving fundamentals could trigger rapid covering and amplify share price gains.
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