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GameStop Corp (GME)
:GME

GameStop (GME) AI Stock Analysis

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GM

GameStop

(NYSE:GME)

54Neutral
GameStop's overall stock score reflects its strong liquidity and cash flow recovery, offset by challenges in revenue growth and profitability. The stock is technically weak with bearish market indicators and appears overvalued, given its high P/E ratio and lack of dividend yield. These factors contribute to a moderate overall risk assessment.
Positive Factors
Business Venture
GameStop's entry into the trading card business seems to be the only recent business venture to see modest success.
Collectibles Growth
The 'collectibles' category grew by 15% in Q4, despite an overall sales decline of 28% year-over-year.
Operating Performance
GameStop impressed with a rare operating profit for its holiday quarter, despite sharply lower revenue.
Negative Factors
NFT Marketplace
GameStop's NFT marketplace strategy has struggled to gain traction.
Operating Losses
The company’s continuing operating losses drive subpar returns, and its stock should reflect that fact.
Store Closures
GameStop delivered Q4 revenue below expectations, as the company continues closing down stores worldwide.

GameStop (GME) vs. S&P 500 (SPY)

GameStop Business Overview & Revenue Model

Company DescriptionGameStop Corp., a specialty retailer, provides games and entertainment products through its e-commerce properties and various stores in the United States, Canada, Australia, and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, virtual reality products, and memory cards; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads. It also sells collectibles comprising licensed merchandise primarily related to the gaming, television, and movie industries, as well as pop culture themes. As of January 29, 2022, the company operated 4,573 stores and ecommerce sites under the GameStop, EB Games, and Micromania brands; and 50 pop culture themed stores that sell collectibles, apparel, gadgets, electronics, toys, and other retail products under the Zing Pop Culture brand, as well as offers Game Informer, a print and digital video game publication featuring reviews of new releases, previews of the big titles on the horizon, and coverage of the latest developments in the gaming industry. The company was formerly known as GSC Holdings Corp. GameStop Corp. was founded in 1996 and is headquartered in Grapevine, Texas.
How the Company Makes MoneyGameStop generates revenue through the sale of new and pre-owned video games, gaming consoles, and accessories, both in-store and online. The company's revenue streams include the direct sale of physical and digital video game products, trade-in programs where customers can exchange used games and consoles for store credit, and the sale of collectibles and pop culture merchandise. GameStop also benefits from loyalty programs and subscription services, which provide recurring revenue opportunities. Partnerships with gaming and electronics manufacturers, as well as exclusive product offerings, are significant factors contributing to GameStop's earnings. Additionally, the company has been focusing on enhancing its digital sales channels to capture a larger share of the growing online gaming market.

GameStop Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Analyzes income from different business areas such as physical stores, e-commerce, and digital sales, revealing which segments are driving growth and how GameStop is adapting to changing consumer preferences.
Chart InsightsGameStop's revenue across all segments is experiencing a downward trend, with notable declines in both Hardware and Accessories and Software segments. This suggests persistent challenges in maintaining sales momentum post-pandemic. The Collectibles segment shows some resilience but is not enough to offset overall declines. Without new strategic initiatives or market shifts, GameStop may struggle to reverse these trends, impacting long-term growth prospects.
Data provided by:Main Street Data

GameStop Financial Statement Overview

Summary
GameStop's financial performance reveals challenges in revenue and profit growth, despite improved gross margins and a robust balance sheet with strong liquidity. The cash flow indicates a positive turnaround, with improved operating cash generation.
Income Statement
60
Neutral
GameStop's income statement reveals a challenging environment with a declining revenue trend and negative EBIT and EBITDA margins in recent years. The gross profit margin improved slightly to 29.1% in 2025, up from 23.5% in 2020, indicating some improvement in cost management. However, the net profit margin remains volatile, showing a slight positive of 3.4% in 2025 after losses in previous years. The revenue growth rate is negative, reflecting a contraction in sales, particularly notable after the 2023 period.
Balance Sheet
75
Positive
GameStop's balance sheet demonstrates strong liquidity with substantial cash reserves, evidenced by cash and equivalents of $4.77 billion against total debt of $410.7 million in 2025. The debt-to-equity ratio is low, indicating minimal leverage. However, the return on equity (ROE) remains low due to fluctuating net income. The equity ratio stands strong at 83.9%, showcasing a solid capital structure with significant shareholder equity.
Cash Flow
65
Positive
The cash flow analysis shows improvement in operating cash flow, turning positive at $145.7 million in 2025, a significant turnaround from negative figures in previous years. Free cash flow also shows positive growth, indicating improved cash generation. However, the operating cash flow to net income ratio is moderate, suggesting ongoing challenges in translating accounting profits into cash. The free cash flow to net income ratio aligns similarly, highlighting the company's recovery in cash liquidity.
Breakdown
Mar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income StatementTotal Revenue
3.82B5.27B5.93B6.01B5.09B
Gross Profit
1.11B1.24B1.37B1.35B1.26B
EBIT
-16.50M-34.50M-308.90M-361.80M-254.70M
EBITDA
22.40M24.50M-240.40M-291.30M-214.60M
Net Income Common Stockholders
131.30M6.70M-313.10M-381.30M-214.60M
Balance SheetCash, Cash Equivalents and Short-Term Investments
4.77B1.20B1.39B1.27B508.50M
Total Assets
5.88B2.71B3.11B3.50B2.47B
Total Debt
410.70M602.80M616.60M649.00M1.05B
Net Debt
-4.35B-318.90M-522.40M-622.40M538.30M
Total Liabilities
945.60M1.37B1.79B1.90B2.04B
Stockholders Equity
4.93B1.34B1.32B1.60B436.70M
Cash FlowFree Cash Flow
129.60M-238.60M52.30M-496.30M63.70M
Operating Cash Flow
145.70M-203.70M108.20M-434.30M123.70M
Investing Cash Flow
265.10M-33.20M-222.70M-64.80M36.90M
Financing Cash Flow
3.44B-11.60M-7.90M1.20B-55.40M

GameStop Technical Analysis

Technical Analysis Sentiment
Positive
Last Price27.26
Price Trends
50DMA
24.81
Positive
100DMA
26.75
Positive
200DMA
24.97
Positive
Market Momentum
MACD
0.87
Negative
RSI
57.88
Neutral
STOCH
68.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GME, the sentiment is Positive. The current price of 27.26 is above the 20-day moving average (MA) of 25.61, above the 50-day MA of 24.81, and above the 200-day MA of 24.97, indicating a bullish trend. The MACD of 0.87 indicates Negative momentum. The RSI at 57.88 is Neutral, neither overbought nor oversold. The STOCH value of 68.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GME.

GameStop Risk Analysis

GameStop disclosed 39 risk factors in its most recent earnings report. GameStop reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

GameStop Peers Comparison

Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
MHMHO
74
Outperform
$2.82B5.5619.02%8.68%8.39%
GAGAP
73
Outperform
$8.09B9.7728.81%2.85%1.32%65.83%
MM
66
Neutral
$3.23B5.6113.40%6.29%-3.60%442.87%
HAHAS
64
Neutral
$7.28B18.9338.67%3.44%-10.32%
60
Neutral
$6.86B11.743.14%4.15%2.37%-21.95%
GMGME
54
Neutral
$12.34B103.884.19%-27.50%1150.23%
42
Neutral
$2.42B-10.27%3.38%38.18%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GME
GameStop
27.26
16.17
145.81%
GAP
Gap Inc
21.76
1.84
9.24%
HAS
Hasbro
61.57
2.25
3.79%
MHO
M/I Homes
105.23
-10.99
-9.46%
M
Macy's
11.43
-6.18
-35.09%
PENN
Penn National Gaming
15.71
-0.83
-5.02%

GameStop Corporate Events

Private Placements and FinancingFinancial Disclosures
GameStop Reports Q3 Sales Decline, Net Income Surge
Neutral
Dec 10, 2024

In its third-quarter results for 2024, GameStop reported a decline in net sales to $860 million from $1.078 billion in the same quarter of the previous year. Despite the drop in sales, the company saw a net income of $17.4 million, compared to a net loss of $3.1 million in the prior year, and completed an equity offering, raising approximately $400 million, which bolstered its cash reserves to $4.616 billion.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.