Michael Burry Says This 'Mall Dinosaur' Stock Could Double
Key takeaways
- Burry sees Build‑A‑Bear as a bargain with upside to $60‑$65, potentially doubling its current price.
- BBW trades at 7x estimated 2026 earnings of $3.50
- BBW’s EBITDA is roughly $80 million
- BBW’s market cap is under $300 million
What happened
Michael Burry added a 6% stake in Build‑A‑Bear Workshop Inc. (BBW) to his portfolio, citing a valuation upside to $60‑$65 per share based on a 10x EBITDA buyout. The stock trades near $25, down from a September 2025 high of $75.85. Burry highlighted BBW’s low valuation multiples, debt‑free balance sheet, and strong capital returns.
Why it matters
BBW is trading at roughly 7x estimated 2026 earnings of $3.50 and below 4x EBITDA, far cheaper than comparable toy wholesalers that trade up to 15x earnings. Burry’s upbeat view could lift the stock and signal a broader retail rebound. The company’s heavy share buybacks and dividend payouts have already reduced…
Short-term and longer-term
Short-term. Over the next few days, watch for any earnings What a company says it expects for future sales or profits — a forecast from the company, not a guarantee.guidance
Longer-term. Over the next few months, BBW’s debt‑free balance sheet and aggressive share buybacks could improve long‑term returns.
Words on this card
- EBITDA
- Earnings before interest, taxes, depreciation, and amortization, a measure of operating profitability.
- Tangible book value
- The net asset value of a company’s physical assets, excluding intangible items.
- Float
- The portion of a company’s shares that are available for trading by the public.
- Short sellers
- Investors who bet that a stock’s price will fall by selling shares they borrow.
- Dividend Learn
- Cash a company pays out to shareholders from profits.
- Earnings Learn
- A company’s results report — usually profit and sales for a quarter, plus any update on what comes next.