GameStop (GME) has had an interesting trajectory over the past few years, to say the least. In the latest significant upswing of the retailer's volatile journey, GME stock gained 5.6% intraday on Sept. 22 after CEO Ryan Cohen confirmed through a regulatory filing that he bought another 1.15 million GameStop Class A shares for $26.4 million. This buy raises Cohen’s stake to about 9%, or more than 40.4 million shares, and follows buys from directors Alain Attal, James Grube, and Lawrence Cheng.
After an extended period of closing down its brick-and-mortar stores due to cost-cutting measures and a shift in focus — a period that saw GameStop shutter hundreds of locations — the company also recently announced that it will be reopening “select” stores. While GameStop did not announce the total number of stores being reopened, it confirmed that one location in Brooklyn, Ohio, would be part of the initial rollout.
Meanwhile, GameStop’s eBay (EBAY) acquisition pitch seems to have hit a wall. After disclosing a $4.9 billion stake in EBAY stock, the company still holds 59 million warrants. As GME stock trades below the $32 strike price, the warrants look set to expire on Oct. 30, putting its potential acquisition funding at risk.
With this in mind, and given that GameStop has no analyst ratings at the moment, it may be best to watch GameStop stock for now. Let's take a closer look at why.
About GameStop Stock
Headquartered in Grapevine, Texas, GameStop is a global specialty retailer of video games, consumer electronics, and gaming accessories that operates both physical stores and e-commerce platforms. Best known for the 2021 short squeeze that turned it into a market landmark, GameStop has narrowed its mall-era footprint while expanding into collectibles and digital initiatives.
GME stock remains one of the most closely watched retail names, with a shareholder base attuned to meme-stock dynamics and strategic shifts under Cohen. GameStop’s market capitalization stands at approximately $12.6 billion currently.
GME stock is down about 4% over the past 52 weeks as investors grapple with falling core game sales, store closures, and uncertainty around its transformation into a cash-rich holding company. However, the stock has gained 20% so far this year. GME stock reached a 52-week low of $17.79 on Aug. 20 but is now up roughly 32% from that level.
GameStop’s 14-day Relative Strength Index (RSI) has risen to 73 (strictly in the overbought category) after the stock skyrocketed on news that Cohen bought shares. Its price-to-earnings ratio also currently sits at 18.6 times, which is higher than the industry average of nearly 15 times.
GameStop Lifted Its Full-Year Outlook After Q2 Profit Climb
GameStop’s second-quarter results show that the company's reliance on collectibles to drive growth seems to be working, at least for its bottom line. The top line, however, is still under pressure from a year-over-year (YOY) comparison to the prior-year launch of the Nintendo (NTDOY) Switch 2, planned store closures, and the divestiture of its France-based operations.
Net sales for Q2 declined 19% YOY to $790.2 million, as the Switch 2 effect led video game revenue to drop 47% YOY to $263.2 million while pre-owned and refurbished revenue decreased 32% YOY to $170.7 million. Meanwhile, the collectibles business — GameStop’s current focus — recorded a rise of 57% YOY to $356.3 million in revenue. The weight of collectibles in the overall top line also grew from 23.4% in the prior-year period to 45.1% in Q2 2026.
Cost-cutting has paid off, as GameStop’s profits increased despite the revenue drop. Adjusted operating income rose 145% YOY to $158.7 million in Q2, while adjusted EPS was $0.27 for the quarter, up 8% YOY. As of Aug. 1, the company held $5.4 billion in cash, cash equivalents, marketable securities, and digital assets plus related receivables along with a $4.9 billion stake in eBay common stock.
The strong results led GameStop to raise its outlook, signaling improving conditions. For fiscal 2026, the company now forecasts adjusted EBITDA above $650 million, up from its prior outlook of more than $600 million.
On the date of publication, Anushka Dutta did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.