GameStop (GME)
NYSEConsumer DiscretionarySpecialty RetailSnapshot 2026-09-09
$19.89+5.29%
Close 2026-09-09 · 1-day change
NYSEConsumer DiscretionarySpecialty RetailSnapshot 2026-09-09
Warn: Management is running behind on a stated commitment.
GameStop is growing revenue about 14% yearly and beat earnings by 87.5% last quarter. The company expects adjusted EBITDA over $600 million in fiscal 2026, nearly double last year. It is focused on acquiring eBay at $125 per share, which could boost growth. The board approved a $2 billion share buyback, showing capital return commitment.
The acquisition of eBay faces shareholder and legal challenges that could delay or derail the deal. The recent stock selloff shows investor doubts. Profit growth may slow if the acquisition fails or integration costs rise.
The stock price is about 19% above our fair value near $19, reflecting analysts' expectation of 51% revenue growth. Our view is more cautious on growth sustainability and acquisition risks.
Breaks if: adjusted EBITDA falls below $500 million in fiscal 2026
Breaks if: acquisition proposal withdrawn or materially delayed beyond 2027-Q1
This is not a price target or investment advice.
A long-form read on the 1–3 year hold thesis. It updates when the weekly evidence changes.
This investment represents a turnaround story with elements of speculative growth. The current thesis state shows a recovery in recent financial performance, but management execution remains volatile and the sector faces headwinds.
The market appears to have a stretched valuation compared to peers, with a premium of 1.26. There is a medium expectations gap, indicating that some positive developments may already be reflected in the stock's current valuation.
Fundamentals are on a positive trajectory, particularly with improved cash from operating activities. However, there is an elevated risk level, and the probability of missing earnings expectations is low but noteworthy due to past performance.
The thesis hinges on several factors, including management's ability to execute on their priorities, such as the proposed acquisition of eBay and share repurchase plans. Additionally, broader sector performance and inflation trends will significantly impact GME's outlook.
The most important moves since the prior daily snapshot.
Company momentum fell by 44.8 points (from 60.0 to 15.2) after fresh earnings.
Mixed, the news cuts both ways. GameStop's Q2 results showed higher net income. Net income is expected to be $290M-$310M, up from $168.6M last year. However, net sales are expected to fall to $780M-$800M. This decline is due to store closures and other factors. The company is also considering withdrawing its $56 billion bid for eBay. This could limit growth opportunities and affect investor expectations.
as of 2026-09-09
Review the evidence to watch, what would become a concern, and what would make it less concerning.
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
Pursue acquisition of eBay with a non-binding proposal and significant equity investment.
Stated as a priority in 3 of last 3 quarters. The Company holds 43.4 million shares of eBay stock valued at about $4.9 billion and submitted a non-binding acquisition proposal. The priority is persistent with significant equity investment and acquisition pursuit.
“As of August 1, 2026, the Company held approximately 43.4 million shares of eBay common stock valued at approximately $4.9 billion.”
“The Company submitted a non-binding proposal to acquire 100% of eBay at $125.00 per share in cash and stock.”
“The Company is highly dependent on the services of the CEO and ability to complete its proposed acquisition of eBay Inc.”
Breaks if: operating cash flow falls below $300 million next year
Continue to improve cash flow from operating activities as a key operational priority.
Stated as a priority in 3 of last 3 quarters. Cash from operating activities improved from $192.5 million in 2025-Q1 to $337.6 million in 2026-Q1, showing positive operational cash flow trajectory. Management is delivering on this priority.
“Cash flows provided by operating activities were $337.6 million for the quarter.”
“Cash from operating activities was positive and improving compared to prior periods.”
“Cash flows provided by operating activities were $192.5 million for the quarter.”
Breaks if: no buybacks executed by end of 2027
In the next 1 to 3 years, GME's performance will depend on management execution and external market conditions. Not investment advice.