GameStop (GME)
Market Price (5/8/2026): $23.95 | Market Cap: $10.7 BilSector: Consumer Discretionary | Industry: Computer & Electronics Retail
GameStop (GME)
Market Price (5/8/2026): $23.95Market Cap: $10.7 BilSector: Consumer DiscretionaryIndustry: Computer & Electronics Retail
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -43% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 17%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 16% Attractive yieldFCF Yield is 5.6% Low stock price volatilityVol 12M is 46% Megatrend and thematic driversMegatrends include Digital Content & Streaming, and E-commerce & Digital Retail. Themes include Gaming Content & Platforms, and Online Marketplaces. | Weak multi-year price returns3Y Excs Rtn is -49% Meaningful short interestShort Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 14% | Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 38x Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -5.1%, Rev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -15%, Rev Chg QQuarterly Revenue Change % is -14% Short seller report Key risksGME key risks include [1] its reliance on a declining physical media market as the industry shifts to digital distribution, Show more. |
| Cash is significant % of market capNet D/ENet Debt/Equity. Debt net of cash. Negative indicates net cash. Equity is taken as the Market Capitalization is -43% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 17%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 16% |
| Attractive yieldFCF Yield is 5.6% |
| Low stock price volatilityVol 12M is 46% |
| Megatrend and thematic driversMegatrends include Digital Content & Streaming, and E-commerce & Digital Retail. Themes include Gaming Content & Platforms, and Online Marketplaces. |
| Weak multi-year price returns3Y Excs Rtn is -49% |
| Meaningful short interestShort Interest % of Basic SharesShort Interest % of Basic Shares = (Short Interest Quantity) / (Basic Shares Outstanding). A high fraction of short interest can indicate potential risk of a short squeeze. is 14% |
| Expensive valuation multiplesP/EBITPrice/EBIT or Price/(Operating Income) ratio is 38x |
| Weak revenue growthRev Chg LTMRevenue Change % Last Twelve Months (LTM) is -5.1%, Rev Chg 3Y AvgRevenue Change % averaged over trailing 3 years is -15%, Rev Chg QQuarterly Revenue Change % is -14% |
| Short seller report |
| Key risksGME key risks include [1] its reliance on a declining physical media market as the industry shifts to digital distribution, Show more. |
Qualitative Assessment
AI Analysis | Feedback
1. GameStop reported a significant earnings beat for Q4 2025, covering the period ending January 31, 2026. The company announced earnings per share (EPS) of $0.49 on March 24, 2026, surpassing analysts' expectations of $0.31 by 58.06%. Additionally, GameStop's adjusted net income for fiscal year 2025 reached $647.4 million, a substantial increase from $131.2 million in fiscal year 2024, despite a decline in net sales for the fourth quarter to $1.104 billion from $1.283 billion in the prior year. This positive financial performance likely provided a floor for the stock, preventing a sustained downturn.
2. The market reacted with skepticism to GameStop's proposed acquisition of eBay, creating downward pressure on the stock. On May 3, 2026, GameStop announced a non-binding proposal to acquire eBay for an estimated $55.5 billion to $56 billion, offering $125.00 per share in a 50% cash and 50% GameStop common stock split. While GameStop reported having approximately $9.4 billion in cash and liquid investments as of January 31, 2026, and a "highly-confident letter" for up to $20 billion in debt financing from TD Securities, the substantial funding gap and the intention to issue new stock raised concerns about potential shareholder dilution. Following the announcement, GameStop's shares declined by 3.66% on May 4, 2026, and 2.6% on the same day, reflecting investor apprehension about the feasibility and financial implications of such a large-scale acquisition.
Show more
Stock Movement Drivers
Fundamental Drivers
The 0.4% change in GME stock from 1/31/2026 to 5/7/2026 was primarily driven by a 4.1% change in the company's Net Income Margin (%).| (LTM values as of) | 1312026 | 5072026 | Change |
|---|---|---|---|
| Stock Price ($) | 23.88 | 23.97 | 0.4% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,808 | 3,630 | -4.7% |
| Net Income Margin (%) | 11.1% | 11.5% | 4.1% |
| P/E Multiple | 25.3 | 25.7 | 1.3% |
| Shares Outstanding (Mil) | 448 | 448 | -0.1% |
| Cumulative Contribution | 0.4% |
Market Drivers
1/31/2026 to 5/7/2026| Return | Correlation | |
|---|---|---|
| GME | 0.4% | |
| Market (SPY) | 3.6% | 40.0% |
| Sector (XLY) | -0.9% | 27.2% |
Fundamental Drivers
The 7.5% change in GME stock from 10/31/2025 to 5/7/2026 was primarily driven by a 22.5% change in the company's Net Income Margin (%).| (LTM values as of) | 10312025 | 5072026 | Change |
|---|---|---|---|
| Stock Price ($) | 22.29 | 23.97 | 7.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,848 | 3,630 | -5.7% |
| Net Income Margin (%) | 9.4% | 11.5% | 22.5% |
| P/E Multiple | 27.5 | 25.7 | -6.8% |
| Shares Outstanding (Mil) | 447 | 448 | -0.2% |
| Cumulative Contribution | 7.5% |
Market Drivers
10/31/2025 to 5/7/2026| Return | Correlation | |
|---|---|---|
| GME | 7.5% | |
| Market (SPY) | 5.5% | 31.2% |
| Sector (XLY) | 0.3% | 26.1% |
Fundamental Drivers
The -14.0% change in GME stock from 4/30/2025 to 5/7/2026 was primarily driven by a -72.9% change in the company's P/E Multiple.| (LTM values as of) | 4302025 | 5072026 | Change |
|---|---|---|---|
| Stock Price ($) | 27.86 | 23.97 | -14.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 3,823 | 3,630 | -5.1% |
| Net Income Margin (%) | 3.4% | 11.5% | 235.9% |
| P/E Multiple | 94.8 | 25.7 | -72.9% |
| Shares Outstanding (Mil) | 447 | 448 | -0.4% |
| Cumulative Contribution | -14.0% |
Market Drivers
4/30/2025 to 5/7/2026| Return | Correlation | |
|---|---|---|
| GME | -14.0% | |
| Market (SPY) | 30.4% | 26.1% |
| Sector (XLY) | 22.5% | 27.4% |
Fundamental Drivers
The 24.3% change in GME stock from 4/30/2023 to 5/7/2026 was primarily driven by a 198.7% change in the company's P/S Multiple.| (LTM values as of) | 4302023 | 5072026 | Change |
|---|---|---|---|
| Stock Price ($) | 19.29 | 23.97 | 24.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 5,927 | 3,630 | -38.8% |
| P/S Multiple | 1.0 | 3.0 | 198.7% |
| Shares Outstanding (Mil) | 304 | 448 | -32.1% |
| Cumulative Contribution | 24.3% |
Market Drivers
4/30/2023 to 5/7/2026| Return | Correlation | |
|---|---|---|
| GME | 24.3% | |
| Market (SPY) | 78.7% | 16.9% |
| Sector (XLY) | 66.2% | 18.6% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| GME Return | 688% | -50% | -5% | 79% | -36% | 25% | 434% |
| Peers Return | 19% | -26% | 31% | 29% | 1% | 9% | 62% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 8% | 96% |
Monthly Win Rates [3] | |||||||
| GME Win Rate | 50% | 33% | 50% | 50% | 33% | 80% | |
| Peers Win Rate | 58% | 33% | 62% | 65% | 48% | 56% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 60% | |
Max Drawdowns [4] | |||||||
| GME Max Drawdown | -8% | -52% | -35% | -43% | -36% | 0% | |
| Peers Max Drawdown | -6% | -36% | -12% | -6% | -24% | -11% | |
| S&P 500 Max Drawdown | -1% | -25% | -1% | -2% | -15% | -7% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: BBY, AMZN, WMT, TGT, MSFT. See GME Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 5/7/2026 (YTD)
How Low Can It Go
| Event | GME | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -18.8% | -18.8% |
| % Gain to Breakeven | 23.2% | 23.1% |
| Time to Breakeven | 8 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -17.3% | -7.8% |
| % Gain to Breakeven | 20.9% | 8.5% |
| Time to Breakeven | 98 days | 18 days |
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -47.9% | -9.5% |
| % Gain to Breakeven | 91.9% | 10.5% |
| Time to Breakeven | 168 days | 24 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -19.0% | -6.7% |
| % Gain to Breakeven | 23.4% | 7.1% |
| Time to Breakeven | 7 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -48.9% | -24.5% |
| % Gain to Breakeven | 95.7% | 32.4% |
| Time to Breakeven | 14 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -32.5% | -33.7% |
| % Gain to Breakeven | 48.2% | 50.9% |
| Time to Breakeven | 10 days | 140 days |
In The Past
GameStop's stock fell -18.8% during the 2025 US Tariff Shock. Such a loss loss requires a 23.2% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
| Event | GME | S&P 500 |
|---|---|---|
| Summer-Fall 2023 Five Percent Yield Shock | ||
| % Loss | -47.9% | -9.5% |
| % Gain to Breakeven | 91.9% | 10.5% |
| Time to Breakeven | 168 days | 24 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -48.9% | -24.5% |
| % Gain to Breakeven | 95.7% | 32.4% |
| Time to Breakeven | 14 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -32.5% | -33.7% |
| % Gain to Breakeven | 48.2% | 50.9% |
| Time to Breakeven | 10 days | 140 days |
| 2016-2017 Trump Reflation Bond Selloff | ||
| % Loss | -24.6% | -3.7% |
| % Gain to Breakeven | 32.6% | 3.9% |
| Time to Breakeven | 1531 days | 6 days |
| 2015-2016 China Devaluation / Global Growth Scare | ||
| % Loss | -45.6% | -12.2% |
| % Gain to Breakeven | 83.8% | 13.9% |
| Time to Breakeven | 1816 days | 62 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -38.0% | -6.8% |
| % Gain to Breakeven | 61.2% | 7.3% |
| Time to Breakeven | 1815 days | 15 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -28.2% | -15.4% |
| % Gain to Breakeven | 39.4% | 18.2% |
| Time to Breakeven | 287 days | 125 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -72.2% | -53.4% |
| % Gain to Breakeven | 259.3% | 114.4% |
| Time to Breakeven | 4445 days | 1085 days |
In The Past
GameStop's stock fell -18.8% during the 2025 US Tariff Shock. Such a loss loss requires a 23.2% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About GameStop (GME)
AI Analysis | Feedback
A Best Buy, but specialized solely in video games, consoles, and related pop culture merchandise.
Barnes & Noble for video games.
AI Analysis | Feedback
- Gaming Platforms: Sells new and pre-owned gaming consoles and hardware.
- Gaming Accessories: Offers various accessories including controllers, headsets, VR products, and memory cards.
- Gaming Software: Provides new and pre-owned video games.
- Digital Gaming Products: Sells in-game digital currency, downloadable content (DLC), and full-game downloads.
- Collectibles: Retails licensed merchandise related to gaming, television, movie, and pop culture themes.
- Game Informer Publication: Publishes a print and digital video game magazine featuring reviews and news.
AI Analysis | Feedback
Major Customers of GameStop (GME)
GameStop Corp. is a specialty retailer that primarily sells products directly to individual consumers rather than other businesses (B2C model). Based on its business description, the company serves the following categories of customers:
- Video Game Enthusiasts and Gamers: This is GameStop's core customer base, comprising individuals who actively purchase new and pre-owned gaming platforms, accessories (controllers, headsets, virtual reality products, memory cards), new and pre-owned gaming software, in-game digital currency, digital downloadable content, and full-game downloads. They are engaged in the gaming ecosystem and seek the latest or classic gaming experiences and related hardware.
- Pop Culture Collectors and Fans: These customers are interested in licensed merchandise, apparel, gadgets, electronics, toys, and other retail products primarily related to the gaming, television, and movie industries, as well as broader pop culture themes. This segment is served through GameStop's general collectibles offerings and specifically through its Zing Pop Culture themed stores.
- Gift Shoppers and Families: This category includes individuals who may not be avid gamers themselves but are purchasing games, consoles, accessories, or collectibles as gifts for children, teenagers, or other family members and friends. They are looking for entertainment products or collectible items suitable for gifting occasions.
AI Analysis | Feedback
Major Suppliers:
- Sony Group Corporation (SONY)
- Microsoft Corporation (MSFT)
- Nintendo Co., Ltd. (NTDOY)
- Electronic Arts Inc. (EA)
- Take-Two Interactive Software, Inc. (TTWO)
- Funko, Inc. (FNKO)
AI Analysis | Feedback
Ryan Cohen, President and Chief Executive Officer
Ryan Cohen founded the e-commerce pet supply company Chewy in 2011 and served as its CEO until 2018. He sold Chewy to PetSmart in 2017 for $3.35 billion. An activist investor, Cohen acquired a significant stake in GameStop in 2020. He was appointed Chairman of GameStop in June 2021 and became President and Chief Executive Officer in September 2023. Cohen does not accept a salary for his roles as CEO and Chairman. Through his investment firm, RC Ventures, he has also invested in other companies such as Bed Bath & Beyond and Nordstrom.
Daniel Moore, Principal Financial and Accounting Officer
Daniel Moore is GameStop's Principal Financial and Accounting Officer. He was appointed as Principal Accounting Officer on August 11, 2023, and later as Principal Financial Officer on March 25, 2024. Moore possesses extensive experience in finance and accounting, including previous senior tax roles at Elevate Textiles and Roper Technologies, Inc.
Mark Robinson, General Counsel and Secretary
Mark Robinson serves as GameStop's General Counsel and Secretary. In June 2023, he was also named Principal Executive Officer and General Manager, reporting directly to Executive Chairman Ryan Cohen, while continuing his duties as General Counsel and Secretary.
AI Analysis | Feedback
Key Risks to GameStop (GME)
- Declining Physical Game Sales and Shift to Digital Distribution: GameStop's traditional business model heavily relies on the sale of physical games and accessories through its brick-and-mortar stores. The video game industry, however, has seen a significant and ongoing shift towards digital downloads, subscription services, and cloud gaming, which directly reduces the demand for physical media. This trend leads to declining foot traffic in physical stores and a reduction in GameStop's core revenue streams, threatening large parts of its business model.
- Intense Competition from Online Retailers and Digital Storefronts: GameStop faces substantial competition from major online retailers like Amazon, as well as digital storefronts operated directly by console manufacturers (e.g., PlayStation Store, Xbox Store) and PC gaming platforms (e.g., Steam). These competitors offer convenience, often competitive pricing, and immediate access to digital content, directly impacting GameStop's market share and profitability.
- Stock Price Volatility and Investment Portfolio Risks: GameStop's stock has experienced extreme price and volume fluctuations, often detached from its operational performance, largely due to its status as a "meme stock" driven by retail investor sentiment. Furthermore, the company's strategy of investing in volatile assets, such as cryptocurrencies like Bitcoin, exposes it to significant market volatility, which could adversely affect its financial position and performance.
AI Analysis | Feedback
The accelerated industry-wide shift from physical video game media to digital downloads and streaming services represents a clear emerging threat. This trend, driven by console manufacturers' increased focus on digital-only consoles and game publishers' preference for direct digital distribution, significantly diminishes the market for new and pre-owned physical games and platforms. Given GameStop's extensive network of physical stores and its historical reliance on physical media and the highly profitable pre-owned market, this ongoing digital transition directly challenges its core business model. Furthermore, the growth of cloud gaming services poses a long-term threat by potentially reducing the need for traditional gaming hardware purchases.
AI Analysis | Feedback
Here are the addressable market sizes for GameStop's main products and services:
Gaming Platforms (Consoles)
- The global video game market, which includes consoles, was estimated at USD 298.98 billion in 2024 and is projected to reach USD 600.74 billion by 2030. The console segment accounted for over 27% of the global video game market in 2024.
- The console gaming market globally is expected to see growth return in 2025, following a projected 1.0% decline in 2024.
- In Europe, the video game market was valued at USD 88.16 billion in 2024 and is expected to reach USD 239.32 billion by 2033.
- The Australia gaming console market is projected to reach USD 1,907.4 million by 2033.
Gaming Accessories (controllers, gaming headsets, virtual reality products, memory cards)
- Globally, the gaming accessories market size was valued at USD 13.23 billion in 2024 and is projected to reach USD 28.12 billion by 2032. Another estimate places the global market at USD 10.6 billion in 2024, growing to USD 29.67 billion by 2033.
- In the U.S., the gaming accessories market size was valued at USD 5.67 billion in 2024 and is projected to reach USD 11.97 billion by 2032. U.S. consumer spending on video game accessories reached $3.2 billion in 2024.
- The North American gaming accessories market was valued at USD 6.0 billion in 2023.
- For Europe, the gaming accessories market is expected to grow from 2024 to 2032 and is projected to generate USD 7.23 billion with a CAGR of 13.8% during the forecast period. The European market was valued at USD 4.0 billion in 2023.
- The Australia gaming accessories market size reached USD 305.20 million in 2024 and is expected to reach USD 527.29 million by 2033. In 2025, the Australian market was valued at approximately AUD 253.39 million.
Gaming Software & Digital Content (new and pre-owned gaming software, in-game digital currency, digital downloadable content, full-game downloads)
- The global video game software market size was valued at $198.5 billion in 2021 and is projected to reach $751.4 billion by 2031.
- The global digital gaming market size is anticipated to be worth USD 344.61 billion in 2025, projected to reach USD 1.32 trillion by 2034.
- In the U.S., the video games software market size was USD 51.47 billion in 2024 and is projected to grow to USD 67.09 billion by 2032. The U.S. online gaming market is estimated at USD 43.52 billion in 2026.
- Europe's video game market was valued at USD 88.16 billion in 2024 and is expected to reach USD 239.32 billion by 2033. Online gaming was the dominant type segment in Europe in 2024. Europe contributed approximately USD 31.88 billion to the global online gaming market in 2025.
Collectibles (licensed merchandise primarily related to the gaming, television, and movie industries, as well as pop culture themes)
null
Game Informer (print and digital video game publication)
null
AI Analysis | Feedback
GameStop (GME) is expected to drive future revenue growth over the next 2-3 years through several strategic initiatives aimed at transforming its business model and adapting to evolving consumer preferences.
-
Expansion into the High-Margin Collectibles Market: GameStop is strategically expanding its focus on high-margin collectibles, including trading cards like Pokémon, Magic: The Gathering, and sports cards, as well as apparel, toys, and other pop culture merchandise. This initiative aims to diversify revenue streams and capitalize on increasing consumer demand in this growing market.
-
Digital Transformation and E-commerce Enhancement (Omnichannel Excellence): The company is actively investing in and enhancing its online platform and e-commerce capabilities to create a seamless omnichannel experience for customers. This digital-first approach is crucial for expanding its reach, adapting to the significant shift in consumer behavior towards digital purchases, and becoming a premier destination for gaming and entertainment products.
-
Diversification of Product Offerings Beyond Traditional Video Games: Beyond the significant push into collectibles, GameStop is exploring and expanding its product range into other entertainment products and new categories. This broader diversification strategy is designed to appeal to a wider customer base and reduce its traditional reliance on physical video game sales, which have been declining.
-
Enhanced Customer Experience and Community Building: GameStop aims to foster brand loyalty and drive repeat business by creating a strong, community-centric ecosystem and improving the overall customer experience. This includes enhancing its online platforms, leveraging its physical stores as important touchpoints, and utilizing loyalty programs to engage its core audience.
AI Analysis | Feedback
Capital Allocation Decisions (Last 3-5 Years)
Share Repurchases
- Within the last 3-5 years, GameStop's share repurchase activity has been minimal to non-existent.
- Historically, in December 2019, GameStop spent $178.6 million to repurchase 34.6 million shares, representing 34% of its outstanding shares.
Share Issuance
- In 2021, during the "meme stock" event, GameStop raised over $1.5 billion in equity through share issuances, allowing it to eliminate virtually all long-term debt.
- In 2022, the company saw a large inflow of $1.67 billion from stock issuance.
- GameStop issued approximately $1.5 billion via 0% convertible notes in Q2 2025. Shares outstanding increased by 29.33% from 2024 to 2025.
Inbound Investments
- Activist investor Ryan Cohen took a significant stake and joined GameStop's board in 2021, signaling a major push towards a digital-first, e-commerce-driven transformation.
- Clear Street Group Inc. acquired a new position in GameStop in Q3 (likely 2025), acquiring shares valued at approximately $29.97 million.
- As of March 2026, institutional investors and hedge funds collectively own 29.21% of GameStop's stock, with major holders including Vanguard Group Inc and BlackRock, Inc..
Outbound Investments
- In Q2 2025, GameStop purchased 4,710 Bitcoin for approximately $513 million, diversifying its cash holdings.
- The company sold its Canadian subsidiary, Electronics Boutique Canada, Inc., in May 2025, and also sold its video game magazine, Game Informer, in 2025.
- GameStop ventured into digital assets by launching an NFT marketplace and crypto wallet in 2022, though the NFT marketplace was later shut down due to regulatory uncertainty.
Capital Expenditures
- Capital expenditures have generally decreased over the last few years, from $60.0 million in fiscal year 2021 to $34.9 million in fiscal year 2024 (ending January 31, 2024).
- In the most recent reported quarter, capital expenditures totaled -$4.30 million.
- Future capital expenditures are anticipated to remain at "modest levels" and will be pragmatically targeted at infrastructure and technology, reflecting investments in technology and enterprise systems.
Latest Trefis Analyses
Trade Ideas
Select ideas related to GME.
| Date | Ticker | Company | Category | Trade Strategy | 6M Fwd Rtn | 12M Fwd Rtn | 12M Max DD |
|---|---|---|---|---|---|---|---|
| 04302026 | FUN | Six Flags Entertainment | Special | Short Squeeze PotentialShort Squeeze PotentialHas potential for a short squeeze. High short interest, rising short interest and high debt. | 0.0% | 0.0% | 0.0% |
| 04242026 | MGM | MGM Resorts International | Insider | Insider Buys | Low D/EStrong Insider BuyingCompanies with strong insider buying in the last 1 month, positive operating income and reasonable debt / market cap | -1.5% | -1.5% | -1.5% |
| 04242026 | WEN | Wendy's | Special | Short Squeeze PotentialShort Squeeze PotentialHas potential for a short squeeze. High short interest, rising short interest and high debt. | -2.5% | -2.5% | -5.3% |
| 04102026 | WHR | Whirlpool | Special | Short Squeeze PotentialShort Squeeze PotentialHas potential for a short squeeze. High short interest, rising short interest and high debt. | -0.8% | -0.8% | -4.8% |
| 04022026 | SKY | Champion Homes | Dip Buy | DB | FCFY OPMDip Buy with High FCF Yield and High MarginBuying dips for companies with high FCF yield and meaningfully high operating margin | 3.1% | 3.1% | -1.2% |
| 01232026 | GME | GameStop | Insider | Insider Buys | Low D/EStrong Insider BuyingCompanies with strong insider buying in the last 1 month, positive operating income and reasonable debt / market cap | 8.5% | 8.5% | -3.9% |
Research & Analysis
Invest in Strategies
Wealth Management
Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 127.92 |
| Mkt Cap | 546.4 |
| Rev LTM | 211,526 |
| Op Inc LTM | 17,471 |
| FCF LTM | 2,174 |
| FCF 3Y Avg | 8,972 |
| CFO LTM | 24,064 |
| CFO 3Y Avg | 22,714 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 1.9% |
| Rev Chg 3Y Avg | 2.0% |
| Rev Chg Q | 4.0% |
| QoQ Delta Rev Chg LTM | 1.0% |
| Op Inc Chg LTM | 10.4% |
| Op Inc Chg 3Y Avg | 17.4% |
| Op Mgn LTM | 6.4% |
| Op Mgn 3Y Avg | 4.7% |
| QoQ Delta Op Mgn LTM | 0.1% |
| CFO/Rev LTM | 11.6% |
| CFO/Rev 3Y Avg | 6.3% |
| FCF/Rev LTM | 3.2% |
| FCF/Rev 3Y Avg | 3.5% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 546.4 |
| P/S | 2.2 |
| P/Op Inc | 27.5 |
| P/EBIT | 22.3 |
| P/E | 25.3 |
| P/CFO | 17.9 |
| Total Yield | 4.4% |
| Dividend Yield | 0.8% |
| FCF Yield 3Y Avg | 2.4% |
| D/E | 0.2 |
| Net D/E | 0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | 5.7% |
| 3M Rtn | 4.9% |
| 6M Rtn | 11.9% |
| 12M Rtn | 15.2% |
| 3Y Rtn | 28.2% |
| 1M Excs Rtn | -4.7% |
| 3M Excs Rtn | -3.1% |
| 6M Excs Rtn | 0.6% |
| 12M Excs Rtn | -15.4% |
| 3Y Excs Rtn | -43.1% |
Comparison Analyses
Price Behavior
| Market Price | $23.97 | |
| Market Cap ($ Bil) | 10.7 | |
| First Trading Date | 02/13/2002 | |
| Distance from 52W High | -31.5% | |
| 50 Days | 200 Days | |
| DMA Price | $23.94 | $23.25 |
| DMA Trend | indeterminate | up |
| Distance from DMA | 0.1% | 3.1% |
| 3M | 1YR | |
| Volatility | 39.4% | 46.4% |
| Downside Capture | 0.77 | 0.73 |
| Upside Capture | 95.07 | 89.16 |
| Correlation (SPY) | 28.9% | 24.7% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 0.45 | 0.75 | 0.85 | 0.84 | 0.93 | 1.10 |
| Up Beta | -0.18 | -0.16 | -0.08 | 0.30 | 0.51 | 0.44 |
| Down Beta | 6.91 | 0.79 | 0.97 | 0.87 | 0.73 | 0.43 |
| Up Capture | 107% | 115% | 130% | 110% | 90% | 711% |
| Bmk +ve Days | 15 | 22 | 31 | 66 | 141 | 428 |
| Stock +ve Days | 12 | 22 | 33 | 59 | 123 | 360 |
| Down Capture | 108% | 109% | 109% | 99% | 129% | 112% |
| Bmk -ve Days | 4 | 18 | 30 | 56 | 108 | 321 |
| Stock -ve Days | 10 | 21 | 31 | 63 | 122 | 381 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with GME | |
|---|---|---|---|---|
| GME | -2.5% | 46.2% | 0.09 | - |
| Sector ETF (XLY) | 22.4% | 18.7% | 0.95 | 26.5% |
| Equity (SPY) | 29.6% | 12.5% | 1.86 | 25.2% |
| Gold (GLD) | 37.0% | 27.1% | 1.14 | 1.0% |
| Commodities (DBC) | 48.7% | 18.0% | 2.12 | 0.5% |
| Real Estate (VNQ) | 12.9% | 13.5% | 0.65 | 6.1% |
| Bitcoin (BTCUSD) | -16.3% | 42.1% | -0.31 | 19.6% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with GME | |
|---|---|---|---|---|
| GME | -10.2% | 97.6% | 0.31 | - |
| Sector ETF (XLY) | 6.9% | 23.8% | 0.25 | 30.8% |
| Equity (SPY) | 12.8% | 17.1% | 0.59 | 25.8% |
| Gold (GLD) | 21.1% | 17.9% | 0.96 | 3.6% |
| Commodities (DBC) | 14.1% | 19.1% | 0.60 | 7.2% |
| Real Estate (VNQ) | 3.3% | 18.8% | 0.08 | 22.1% |
| Bitcoin (BTCUSD) | 7.0% | 56.0% | 0.34 | 17.4% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with GME | |
|---|---|---|---|---|
| GME | 14.7% | 117.8% | 0.60 | - |
| Sector ETF (XLY) | 13.0% | 22.0% | 0.54 | 19.9% |
| Equity (SPY) | 15.0% | 17.9% | 0.72 | 16.7% |
| Gold (GLD) | 13.5% | 16.0% | 0.70 | 0.3% |
| Commodities (DBC) | 9.4% | 17.8% | 0.44 | 7.0% |
| Real Estate (VNQ) | 5.7% | 20.7% | 0.24 | 15.5% |
| Bitcoin (BTCUSD) | 68.2% | 66.9% | 1.07 | 6.9% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Expand for More| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 3/24/2026 | 1.2% | 1.0% | 9.6% |
| 12/9/2025 | -4.3% | -3.6% | -8.1% |
| 9/9/2025 | 3.3% | 11.7% | 3.5% |
| 6/10/2025 | -5.3% | -23.7% | -21.4% |
| 3/25/2025 | 11.7% | -11.0% | 6.6% |
| 12/10/2024 | 7.6% | 16.1% | 15.2% |
| 9/10/2024 | -12.0% | -14.0% | -12.6% |
| 6/7/2024 | -39.4% | -37.4% | -47.2% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 13 | 12 | 11 |
| # Negative | 11 | 12 | 13 |
| Median Positive | 7.6% | 14.1% | 8.1% |
| Median Negative | -15.2% | -14.2% | -19.0% |
| Max Positive | 35.2% | 62.4% | 83.5% |
| Max Negative | -39.4% | -37.4% | -47.2% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 01/31/2026 | 03/24/2026 | 10-K |
| 10/31/2025 | 12/09/2025 | 10-Q |
| 04/30/2025 | 06/10/2025 | 10-Q |
| 01/31/2025 | 03/25/2025 | 10-K |
| 10/31/2024 | 12/10/2024 | 10-Q |
| 07/31/2024 | 09/10/2024 | 10-Q |
| 04/30/2024 | 06/11/2024 | 10-Q |
| 01/31/2024 | 03/26/2024 | 10-K |
| 10/31/2023 | 12/06/2023 | 10-Q |
| 07/31/2023 | 09/06/2023 | 10-Q |
| 04/30/2023 | 06/07/2023 | 10-Q |
| 01/31/2023 | 03/28/2023 | 10-K |
| 10/31/2022 | 12/07/2022 | 10-Q |
| 07/31/2022 | 09/07/2022 | 10-Q |
| 04/30/2022 | 06/01/2022 | 10-Q |
| 01/31/2022 | 03/17/2022 | 10-K |
Insider Activity
Expand for More| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Robinson, Mark Haymond | General Counsel and Secretary | Direct | Sell | 4152026 | 23.19 | 3,912 | 90,715 | 2,672,068 | Form |
| 2 | Moore, Daniel William | PFO and PAO | Direct | Sell | 4032026 | 22.94 | 7,210 | 165,430 | 2,317,716 | Form |
| 3 | Robinson, Mark Haymond | General Counsel and Secretary | Direct | Sell | 4032026 | 22.94 | 7,209 | 165,407 | 2,247,322 | Form |
| 4 | Cheng, Lawrence | by Cheng Capital LLC | Buy | 1262026 | 22.87 | 5,000 | 114,368 | 2,012,886 | Form | |
| 5 | Cohen, Ryan | President, CEO and Chairman | Direct | Buy | 1222026 | 21.60 | 500,000 | 10,800,500 | 828,351,735 | Form |
GME Trade Sentinel
AVOID (Score 1-2)
CONVICTION RATIONALE
The score is exceptionally low because despite the high narrative-based asymmetry, the underlying business quality is extremely poor. The model applies severe penalties for an 'ERODING' moat, negative revenue growth ('Decay'), and a 'SPECULATIVE' valuation. The stock is a bet on a single, low-probability transformative event, while the core operations are structurally broken. This represents a poor risk/reward from a data-driven, fundamental perspective.
STOCK ARCHETYPE
Primary: 'Turnaround / Deep Value', Secondary: 'Binary Innovator'The company fits 'Turnaround' as it is a broken business attempting a radical transformation via aggressive cost-cutting and a pivot to a new segment (Collectibles). The focus is on management execution and the asset floor provided by its massive cash balance. It has a 'Binary Innovator' secondary profile due to the high-stakes potential for a transformative acquisition, making the investment outcome highly dependent on a single future capital allocation event.
INVESTMENT THESIS
The primary long thesis is a capital allocation story. GameStop is evolving from a declining retailer into a holding company. The market may re-rate the stock based on the successful deployment of its ~$9 billion cash hoard into an accretive, transformative acquisition, such as the rumored bid for eBay. This M&A potential, combined with the rapid, high-margin growth of the Collectibles segment, could create a new earnings profile independent of the legacy business.
- The company possesses a ~$9 billion cash and marketable securities balance, providing immense capital allocation optionality.
- The Collectibles segment grew 47.7% YoY in FY2025, and its share of revenue mix increased to 33.1% in the most recent quarter (Q4 2025).
- Recent (May 2026) reports of a non-binding proposal to acquire eBay signal management's intent to pursue a transformative M&A transaction.
- The company achieved full-year net income of $418.4M in FY2025, proving the cost-cutting and mix-shift strategy can generate profitability.
PRIMARY RISK
The primary risk is the structural obsolescence of GameStop's core business. The rapid, irreversible shift of video game sales to digital downloads is eroding the legacy hardware and software segments, which still account for over two-thirds of revenue. If this decline accelerates, it could overwhelm the growth in the smaller collectibles segment, leading to sustained negative top-line growth and cash burn, regardless of cost controls.
- The shift to digital console game sales has exceeded 70-80%, structurally undermining the physical software market.
- Overall company net sales declined by 5.0% in FY2025 and 13.9% in Q4 2025, indicating the decline is ongoing.
- GameStop is losing market share to existential threats like digital platforms (Sony, Microsoft) and structural threats like Amazon, with a 'LOSING' status against both.
| KPI | Threshold | Rationale |
|---|---|---|
| Collectibles Revenue Growth YoY | >+20% YoY | This is the primary growth engine and driver of margin expansion. Sustained high growth is essential to prove the pivot strategy is viable and can offset legacy declines. |
| Net Income | Positive / >$150M | Demonstrates that cost discipline is sufficient to maintain profitability amidst declining sales, which is critical for funding the company's transformation without burning its cash pile. |
| Core Hardware/Software Revenue Decline YoY | Deceleration of decline (e.g., from -20% to -15%) | The rate of decay in the legacy business is the single biggest threat. Any sign of stabilization would significantly de-risk the thesis and provide more time for the collectibles business to scale. |
Capital Allocation Transformation vs. Structural Obsolescence
BULL VIEW
The cash pile will be used for an accretive acquisition (e.g., eBay), creating a new, viable holding company completely independent from the failing legacy retail business.
CORE TENSION
Can management deploy its ~$9B cash hoard into a transformative acquisition before the structural decline of its core retail business destroys remaining enterprise value?
PREVAILING SENTIMENT
Bears are winning. The 13.9% Q4 revenue decline is a current fact, while the bull case is a future, low-probability M&A event. Profitability is artificially supported by interest income, not operational health.
BEAR VIEW
The core business is declining too fast (-13.9% Q4 revenue), which will force the company to burn its cash on operations, neutralizing the M&A thesis entirely.
| Timeline | Event & Metric To Watch |
|---|---|
Next 90 days | Resolution of eBay Acquisition Bid Watch: A definitive press release announcing either a binding agreement to acquire eBay or the formal withdrawal of the proposal. This is a binary event. |
Early June 2026 | Q1 2026 Earnings Report Watch: Collectibles Revenue Growth YoY. Must show sustained momentum vs the +47.7% baseline from FY2025 to validate the pivot strategy. |
Early September 2026 | Q2 2026 Earnings Report Watch: Core Hardware/Software Revenue Decline. Watch for acceleration beyond the -20% to -30% range, indicating a faster-than-expected demise of the legacy business. |
Monthly | Weakening Consumer Spending Data Watch: Federal Reserve (FRED) data on 90+ day credit card delinquency rates. A sequential acceleration signals worsening consumer health. |
| Date | Event | Stock Impact |
|---|---|---|
Dec 10, 2025 | Q3 2025 Earnings (Estimated) Details: Continuing the trend of revenue decline offset by cost-cutting measures. The lack of management guidance remained a key point of concern for investors. | Slight -1.2% pullback $22.12 -> $21.86 |
Mar 24, 2026 | Q4 & Full-Year 2025 Earnings Details: Company reported FY2025 net income of $418.4M and a 47.7% YoY increase in Collectibles revenue, but overall Q4 sales declined 13.9%, showing core business erosion. | Modest 1.2% gain $22.81 -> $23.08 |
Position Sizing
1% - 3%
CONSERVATIVE
The combination of a Bearish fundamental sentiment, an Eroding moat, and Low visibility creates a high-risk profile. Sizing is capped to Conservative levels as a 'watchlist' position.
Diversification Alternatives
COST
SECTORSuperior business model with a powerful, widening moat (membership) and stable growth, directly contrasting GME's eroding position and reliance on a single speculative event.
TSCO
INDUSTRYA specialty retailer with a durable, defensible niche and positive growth drivers, avoiding the existential obsolescence risk plaguing GME's core business.
GameStop is transitioning from a declining physical video game retailer into a specialized, high-margin collectibles business and a capital-rich investment vehicle, deliberately shrinking its retail footprint to maximize profitability and deploy its large cash balance.
Filter all news through the lens of a capital allocation story: is the company using its cash to acquire a transformative business, and is the collectibles segment's growth offsetting the structural decline in physical software sales?
Announcements of a major acquisition of a consumer-goods company; Collectibles revenue growth exceeding +20% YoY; continued SG&A expense reduction; positive free cash flow generation; significant insider buying from key executives.
Failure to deploy its large cash balance into a value-accretive acquisition; accelerating declines in hardware/software revenue that outpace collectibles growth; a return to negative net income; significant insider selling or a halt in executive share purchases.
Quarterly fluctuations in new console or game sales — this is a declining, legacy business; short-term stock price volatility driven by retail sentiment — not tied to fundamental business changes; minor partnerships for in-store events.
Repricing Catalyst
The primary catalyst is the potential deployment of its ~$9 billion cash balance into a transformative acquisition, as guided by CEO Ryan Cohen. A successful acquisition could re-rate the company from a specialty retailer to a diversified holding company. Separately, the rapid growth and higher margins of the Collectibles segment are changing the profit mix of the company.
Video Game Hardware & Accessories
$1.8B TTM (50.7% of Total) · -999% MarginWhat It Is
New and pre-owned video game consoles (e.g., Sony PlayStation, Microsoft Xbox, Nintendo Switch), controllers, headsets, and other peripherals.
Who Pays & How
Consumers (typically males aged 16-44) purchase hardware for access to new games. The trade-in program provides an incentive, allowing customers to reduce the cost of new hardware by trading in old consoles and games.
Competition
Collectibles
$1.1B TTM (29.2% of Total) · 34.5% MarginWhat It Is
Apparel, toys, trading cards (e.g., Pokémon), and pop culture figurines (e.g., Funko).
Who Pays & How
A broad demographic of collectors and enthusiasts, including core gamers and pop culture fans, purchase these items. This segment offers higher gross margins than the legacy gaming business.
Competition
Video Game Software
$0.7B TTM (20.1% of Total) · -999% MarginWhat It Is
New and pre-owned physical video games for consoles.
Who Pays & How
Consumers who prefer physical media ownership or seek value through the trade-in of pre-owned games. The trade-in program is a key differentiator, providing higher margins for the company and value for the customer.
Competition
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
Prefer one of these to Trefis? Tell us why.