GameStop (GME) AI Stock Analysis

• Market Cap: $9.90B
• Dividend Yield: N/A
• Average Volume (3M): 18.46M
• Price to Earnings (P/E): 48.0
• Beta (1Y): 0.71
• Revenue Growth: -25.30%
• EPS Growth: 479.26%
• Country: US
• Employees: 6,000
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Specialty Retail
• EPS (TTM): 0.17
• Shares Outstanding: 447,336,300
• 10 Day Avg. Volume: 29,959,145
• 30 Day Avg. Volume: 18,461,209
• PEG Ratio: 0.08
• Price to Book (P/B): 1.10
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.36
• Enterprise Value/Market Cap: 0.14
• Enterprise Value/Revenue: 0.08
• Enterprise Value/Gross Profit: 1.21
• Enterprise Value/Ebitda: 8.18
• 1Y Price Target: $13.50
• Price Target Upside: -42.11% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: $22.50 ▼(-3.52%Downside)

GameStop's overall stock score reflects a mix of improved financial performance and strategic corporate actions but is dampened by bearish technical signals and high valuation concerns. The company's restructuring and Bitcoin investment are positive, yet challenges in revenue growth and technical indicators present risks.

Positive Factors

Business Expansion

GameStop's entry into the trading card business seems to be the only recent business venture to see modest success.

Financial Performance

GameStop impressed with a rare operating profit for its holiday quarter, despite sharply lower revenue.

Operating Loss Management

The company managed to trim its operating losses to almost breakeven, with a net operating loss of less than $10 million in each of the last two fiscal years.

Negative Factors

Cryptocurrency Strategy

It is unlikely that its conversion of cash into Bitcoin will drive an even greater premium.

NFT Marketplace

GameStop's NFT marketplace strategy has struggled to gain traction.

Revenue Decline

GameStop delivered Q4 revenue below expectations, as the company continues closing down stores worldwide.

GameStop Business Overview & Revenue Model

Company Description

GameStop Corp. is a leading global retailer of video games, gaming consoles, and associated accessories. The company operates through two primary business segments: Physical and Digital. GameStop offers a wide range of new and pre-owned gaming products, collectibles, and consumer electronics across its physical retail stores and online platforms. With a significant presence in North America, Europe, and Australia, GameStop is a prominent player in the gaming and entertainment industries.

How the Company Makes Money

GameStop generates revenue primarily through the sale of new and pre-owned video game hardware, software, and accessories. Its key revenue streams include brick-and-mortar retail sales, e-commerce sales on its website, and the trade-in and resale of pre-owned video games and consoles. The company also earns money through the sale of collectibles and other consumer electronics, such as virtual reality headsets and headphones. GameStop leverages exclusive partnerships with gaming companies and console manufacturers to provide customers with early access to new releases and exclusive bundles, enhancing its revenue potential. Additionally, GameStop's loyalty program and gift card offerings contribute to its earnings by encouraging repeat purchases and customer engagement.

GameStop Financial Statement Overview

Summary

GameStop has shown improvement in profitability and operational efficiency, with a solid balance sheet featuring low leverage and high equity. Cash flow has turned positive, suggesting improved cash management. However, challenges in revenue growth persist, impacting overall financial performance.

Income Statement

GameStop's revenue has shown a declining trend from 2022 to TTM (Trailing-Twelve-Months), with a decrease from $6.01 billion to $3.67 billion. The gross profit margin is solid at 30.56% for TTM, but the company has struggled with profitability, as seen in the net profit margin of 5.67%. Notably, EBIT and EBITDA margins are positive in TTM, indicating an improvement in operating efficiency compared to previous years. Revenue growth has been negative, reflecting challenges in maintaining market share.

Balance Sheet

GameStop has a strong equity position, with stockholders' equity constituting 66.45% of total assets in TTM, indicating a solid capital structure. The debt-to-equity ratio is low at 0.35, suggesting conservative leverage. Return on Equity (ROE) has improved to 4.18% in TTM, reflecting better profitability relative to equity, although it remains modest. The company's high level of cash and short-term investments boosts its financial flexibility.

Cash Flow

GameStop's free cash flow has improved significantly, showing a positive growth rate from negative figures in previous years to $433.9 million in TTM. The operating cash flow to net income ratio stands at 2.15, indicating robust cash generation relative to net income. However, historical fluctuations in cash flow highlight potential volatility in cash generation capabilities.

Breakdown
TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement		Total Revenue
3.67B	3.82B	5.27B	5.93B	6.01B	5.09B
	Gross Profit
1.12B	1.11B	1.24B	1.37B	1.35B	1.26B
	EBIT
57.70M	-26.20M	-34.50M	-308.90M	-361.80M	-254.70M
	EBITDA
80.90M	22.40M	24.50M	-240.40M	-291.30M	-214.60M
	Net Income Common Stockholders
208.30M	131.30M	6.70M	-313.10M	-381.30M	-214.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.39B	4.77B	1.20B	1.39B	1.27B	508.50M
	Total Assets
7.50B	5.88B	2.71B	3.11B	3.50B	2.47B
	Total Debt
1.76B	410.70M	602.80M	616.60M	649.00M	1.05B
	Net Debt
-4.62B	-4.35B	-318.90M	-522.40M	-622.40M	538.30M
	Total Liabilities
2.52B	945.60M	1.37B	1.79B	1.90B	2.04B
	Stockholders Equity
4.99B	4.93B	1.34B	1.32B	1.60B	436.70M
Cash Flow		Free Cash Flow
433.90M	129.60M	-238.60M	52.30M	-496.30M	63.70M
	Operating Cash Flow
448.00M	145.70M	-203.70M	108.20M	-434.30M	123.70M
	Investing Cash Flow
82.60M	265.10M	-33.20M	-222.70M	-64.80M	36.90M
	Financing Cash Flow
4.92B	3.44B	-11.60M	-7.90M	1.20B	-55.40M

GameStop Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GME, the sentiment is Negative. The current price of 23.32 is below the 20-day moving average (MA) of 29.01, below the 50-day MA of 27.68, and below the 200-day MA of 25.83, indicating a bearish trend. The MACD of -0.92 indicates Positive momentum. The RSI at 34.99 is Neutral, neither overbought nor oversold. The STOCH value of 10.50 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GME.

GameStop Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MHO	77 Outperform	$2.89B	5.71	19.02%	―	8.68%	8.39%
M	73 Outperform	$3.05B	5.68	12.92%	6.49%	-3.77%	4607.98%
GAP	72 Outperform	$7.78B	9.09	29.16%	3.16%	1.07%	28.03%
HAS	72 Outperform	$9.78B	23.02	39.16%	4.13%	-10.31%	―
Sector *	62 Neutral	$6.88B	11.07	2.77%	4.28%	2.67%	-24.94%
PENN	61 Neutral	$2.35B	―	-2.81%	―	5.51%	92.46%
GME	51 Neutral	$9.90B	48.01	6.62%	―	-25.30%	479.26%

GameStop Corporate Events

GameStop Holds Annual Meeting, Elects New Directors

On June 12, 2025, GameStop Corp. held its Annual Meeting of Stockholders where key decisions were made. The stockholders elected five directors, approved an advisory vote on executive compensation, and ratified the appointment of KPMG LLP as the independent registered public accounting firm for the fiscal year ending January 31, 2026. These decisions reflect the company’s ongoing governance and financial oversight strategies.

The most recent analyst rating on (GME) stock is a Sell with a $11.00 price target. To see the full list of analyst forecasts on GameStop stock, see the GME Stock Forecast page.

GameStop Reports Q1 2025 Financial Results and Bitcoin Investment

GameStop Corp. reported its financial results for the first quarter of 2025, showing a decrease in net sales to $732.4 million from $881.8 million in the previous year’s first quarter. Despite this, the company managed to reduce its operating loss to $10.8 million from $50.6 million, aided by international restructuring efforts and impairment charges. Notably, GameStop achieved a net income of $44.8 million, compared to a net loss of $32.3 million in the prior year. The company also completed the divestiture of its Canadian operations and invested in Bitcoin, purchasing 4,710 units between May 3 and June 10, 2025.

The most recent analyst rating on (GME) stock is a Sell with a $11.00 price target. To see the full list of analyst forecasts on GameStop stock, see the GME Stock Forecast page.

GameStop Acquires 4,710 Bitcoin to Diversify Assets

On May 28, 2025, GameStop Corp. announced the purchase of 4,710 Bitcoin. This strategic move highlights GameStop’s ongoing efforts to diversify its assets and potentially strengthen its financial positioning in the evolving digital economy.

The most recent analyst rating on (GME) stock is a Sell with a $13.50 price target. To see the full list of analyst forecasts on GameStop stock, see the GME Stock Forecast page.