DailyIQ
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Sector:Consumer CyclicalAll sectors
Last updated 1 hour ago

GME·GameStop Corp.

$.
-. (-.%)
After Hours
High
$22.02
Open
$21.94
Market Cap
9.73B
52W High
$28.10
Low
$21.65
P. Close
$21.67
P/E
12.75
52W Low
$19.93
Fwd P/E
17.92
DailyIQ Est.
-
Technical Score (1D)
32
SELL
News Sentiment
70
BULLISH
GameStop’s latest quarterly report shows a pivot toward high‑margin collectibles, with revenue growth and gross margins returning to profitability, signaling a shift in its business model. The stronger operating performance is expected to support the company’s raised FY26 adjusted EBITDA outlook of over $600 million, nearly double the $345 million projected for FY25, which could lift valuation multiples. Management’s emphasis on inventory turnover and high‑margin product lines suggests the company is scaling its supply chain, but the sustainability of collectible demand remains uncertain. Investors should watch the next earnings release for confirmation of the margin drivers and any guidance on inventory management, as this will clarify whether the profitability gains are repeatable. In parallel, GameStop has reaffirmed its $56 billion cash‑and‑stock bid for eBay, a move that could reshape its revenue mix and create new synergies, but the deal’s progress is still contingent on regulatory and market approval. The e‑commerce pivot may influence short‑term earnings volatility, so traders should monitor any updates on the acquisition timeline and related cost‑savings announcements. Sony’s decision to halt PlayStation disc production in January 2028 could tighten physical supply for GameStop’s second‑hand market, potentially creating scarcity and upward pressure on resale prices. While this supply constraint is a longer‑term factor, it is worth watching inventory levels and any price adjustments in the second‑hand segment over the next few weeks. Analysts have raised GME’s target price to $21, reflecting optimism about the new earnings outlook and the e‑commerce strategy, but the comparison to a Berkshire‑style model remains speculative. Overall, the convergence of improved margins, a bullish EBITDA forecast, and a high‑profile acquisition attempt sets the stage for a potentially volatile but upside‑leaning period; traders should keep an eye on earnings confirmation, acquisition progress, and inventory dynamics.
Earnings Summary
GameStop Corporation, a specialty retailer headquartered in Grapevine, Texas, focuses on video game hardware, software, and related merchandise across North America and Europe, while also expanding into digital content and collectibles that broaden its entertainment footprint. In the most recent reporting cycle, GameStop posted Q4 2024 earnings of $0.30 per share versus an estimate of $0.08, and revenue of $1.28 billion, followed by Q1 2025 earnings of $0.17 per share against a $0.04 estimate and $732.4 million in sales; the subsequent Q2 2025 period delivered $0.25 EPS against a $0.155 forecast and $972.2 million in revenue, and Q3 2025 produced $0.24 EPS versus $0.20 expected with $821 million in sales—four consecutive earnings‑beat quarters, though revenue swung from a decline in Q1 to a rebound in Q2 and a modest drop in Q3. Historically, GameStop has shown a mixed YoY revenue trajectory, with the 14 % year‑over‑year increase reported in the latest news and a 770 % jump in net income, while EPS has consistently outpaced analyst expectations in each of the last four quarters, underscoring a pattern of earnings strength even when sales growth is uneven. The recent earnings release highlighted record net income of $389.6 million and a 14 % sales rise to $835.3 million, driven largely by a surge in collectibles that now represent roughly 42 % of revenue, and announced a $2 billion share‑repurchase program that signals management confidence in cash flow and could support the share price; the company also increased its authorized common shares to 2.5 billion and its stake in eBay to 7.8 %, positioning it for potential strategic collaborations. Investors should watch the pace of the buyback execution and any guidance on future earnings or margin trends, as well as the status of the eBay partnership and any forthcoming acquisition or equity issuance plans, since these factors could materially influence short‑term liquidity and valuation dynamics.

EPS

EstBeatMiss
$0.00$0.09$0.17$0.25$0.34Q4'24Q1'25Q2'25Q3'25Q1'27
QtrEstActual+/−
Q1'27$0.19 - -
Q3'25$0.20$0.24+20.0%
Q2'25$0.15$0.25+61.3%
Q1'25$0.04$0.17+325.0%
Q4'24$0.08$0.30+275.0%

Revenue

EstBeatMiss
$650M$829M$1.0B$1.2B$1.4BQ4'24Q1'25Q2'25Q3'25
QtrEstActual+/−
Q1'27 - - -
Q3'25 - $821M -
Q2'25 - $972M -
Q1'25 - $732M -
Q4'24 - $1.3B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

GME Stock Snapshot

GME is currently trading at $21.69, giving GameStop Corp. a market cap of 9.73B and a P/E ratio of 12.8. Today's range spans $21.65–$22.02, with shares opening at $21.94 and moving up $0.02 (0.1%) from the prior close. DailyIQ's technical score sits at 32/100 (SELL) with a news sentiment reading of 70/100.

Over the past year GME has traded between $19.93 and $28.10 - the current price is +8.8% off the 52-week low and -22.8% from the high.

GME is a small-cap Consumer Cyclical stock (9.73B market cap) in a non-trending phase. Score: 32/100 (SELL). Sentiment: bullish (70/100). Price: $21.69 (in the lower half of its 52-week range in $19.93–$28.10). (P/E: 12.8) At this capitalization tier, SELL signals combined with bullish news flow often indicate a period of institutional disinterest - the setup can stay neutral or deteriorate until a catalyst restores conviction.

For GME (small-cap, Consumer Cyclical, 9.73B market cap), the SELL technical reading (32/100) and bullish news sentiment (70/100) at $21.69 (in the lower half of its 52-week range) describe a stock where the cost of patience is higher than in large-cap equivalents — thin float dynamics mean that time spent waiting for a catalyst can erode position value without the passive bid support that larger names receive. The $19.93–$28.10 annual range defines the structural stakes.