GameStop Corp., a specialty retailer, provides games and entertainment products through its stores and ecommerce platforms in the United States, Canada, Australia, and Europe. The company sells new and pre-owned gaming platforms; accessories, such as controllers, gaming headsets, and virtual reality products; new and pre-owned gaming software; and in-game digital currency, digital downloadable content, and full-game downloads. It sells collectibles comprising apparel, toys, trading cards, gadgets, and other retail products for pop culture and technology enthusiasts, as well as engages in the digital asset wallet and NFT marketplace activities. The company operates stores and ecommerce sites under the GameStop, EB Games, and Micromania brands; and 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 magazine, a print and digital gaming publication. The company was formerly known as GSC Holdings Corp. GameStop Corp. was founded in 1996 and is headquartered in Grapevine, Texas.

GameStop Corporation

Key Points
Opendoor Technologies buys homes from willing sellers and attempts to flip them for a profit, which is a risky business model during the best of times.
The U.S. real estate market is in a rut right now with significantly more sellers than buyers.
Retail investors used social media to whip up a buying frenzy in Opendoor stock during 2025, but it could be set for a reversal in 2026.
Opendoor Technologies (NASDAQ: OPEN) stock delivered a return of 264% in 2025, but that only tells a small part of the story. The stock hit a record low of $0.51 in June before rocketing higher by more than 2,000%, to reach $10.87 by September, as retail investors whipped up a buying frenzy using social media platforms like Reddit and X (formerly Twitter).
Opendoor operates in the real estate sector, so with the U.S. Federal Reserve cutting interest rates six times since late 2024, a little optimism from investors might be warranted. However, this company faces some structural issues that will be very difficult to overcome, even with a new chief executive officer who's implementing a fresh strategy.
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Here's what could be in store for Opendoor stock during 2026.
Opendoor's business model has a concerning track record
Selling a home is an enormous undertaking for most owners, which is why they hire a professional agent to manage the process. But not even the best agents can guarantee a timely sale, which leaves the seller in a state of uncertainty for weeks or even months.
Opendoor operates a direct-buying service. Willing sellers can enter some basic details about their home on the company's website, and they will be presented with a cash offer they can accept or reject. If they choose to proceed, Opendoor can get the deal closed in just a couple of weeks -- no open homes, no uncertain settlements, no fuss.
The company makes money by attempting to flip the house for a profit, which is straightforward when real estate prices are rising but extremely risky when the housing market is weak. After the last housing boom peaked in 2021, companies like Zillow and Redfin shut their direct-buying businesses because they were suffering substantial losses. In fact, Zillow's direct-buying service was losing so much money that it threatened the financial stability of the entire company.
Unfortunately, the real estate market isn't very strong right now. U.S. existing home sales came in at 4.35 million annualized units in December, which remained near a five-year low. Plus, according to data from Redfin, there were 529,770 more sellers than buyers last November, which is near a record high. It's very hard for Opendoor to generate sales in these conditions, especially at favorable prices.
Fortunately, the Fed's interest-rate cuts are steadily reducing mortgage costs, and President Donald Trump is trying to accelerate the decline by instructing government-controlled enterprises Fannie Mae (Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) to intervene in the market for mortgage-backed securities. Anything that helps jump-start the housing market will help Opendoor's business.
Opendoor continues to lose money
Opendoor sold 9,813 homes during the first three quarters of 2025, generating $3.6 billion in revenue. However, it only acquired 6,535 homes during the same period, as management deliberately reduced inventory in light of the tough market conditions. Therefore, we already know the company's revenue is likely to shrink in the early stages of 2026.
However, Opendoor's real problem is on the bottom line because it reported a $204 million net loss on a generally accepted accounting principles (GAAP) basis during the first three quarters of 2025. Even after excluding one-off and non-cash expenses like stock-based compensation, the company's adjusted (non-GAAP) loss still came in at $133 million.
Opendoor had $962 million in cash on hand as of Sept. 30, so it can afford to sustain losses of this magnitude for the foreseeable future. That provides some runway for the company's new CEO Kaz Nejatian, who was appointed in September. He previously held leadership roles at Shopify, PayPal, and LinkedIn and has a plan to turn this ship around.
Nejatian wants to use technologies like artificial intelligence (AI) to speed up the pace at which Opendoor sells each home after acquiring it, which will theoretically leave the company less exposed to housing-market swings. He strongly believes boosting sales volume (and therefore, market share) will give Opendoor more control over prices, which will create a pathway to sustainable profits.
However, I'm not totally convinced. Zillow was an extremely high-volume player in the direct-buying market and still couldn't make the numbers work.
Investors should proceed with caution
The CME Group's FedWatch tool suggests there could be two more interest-rate cuts in 2026, which should bring more buyers into the real estate market. However, it's important to remember that interest rates were near a historic low when Zillow and Redfin exited the direct-buying business, so there's no guarantee lower rates will be a magic bullet for Opendoor.
Opendoor stock has already plummeted by 46% from last year's peak, and I think there could be more downside coming during 2026. Previous stocks that were swept up in social media-fueled retail buying frenzies include GameStop and AMC, and both went on to lose most of their value once the hype settled down. That appears to be the most likely outcome in this case, too.
Should you buy stock in Opendoor Technologies right now?
Before you buy stock in Opendoor Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Opendoor Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $464,439!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,150,455!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 27, 2026.
Anthony Di Pizio has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends PayPal, Shopify, and Zillow Group. The Motley Fool recommends CME Group and Reddit and recommends the following options: long January 2027 $42.50 calls on PayPal and short March 2026 $65 calls on PayPal. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This Unstoppable Stock Soared by 264% in 2025. Here's What Could Happen in 2026.

Key Points
Ryan Cohen, former founder of Chewy, became GameStop's CEO in late 2023.
Since then, Cohen has purchased a significant amount of outstanding shares.
Cohen is trying to transition the company from a dying video game retailer into a more diversified, digital business.
Although it's been several years since GameStop (NYSE: GME) truly went parabolic, the stock has stayed in the limelight and maintained a fervent crowd ever since. Chewy founder Ryan Cohen got involved in the stock in the early days of meme mania, but didn't become CEO until late 2023.
Cohen has been trying to figure out the company's direction, especially considering that the brick-and-mortar video game strategy is clearly a declining business. But it's also clear that Cohen is a big believer in GameStop's future.
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Recently, Securities and Exchange Commission (SEC) filings revealed that Cohen had purchased 500,000 shares of GameStop stock, at an average cost of approximately $21.12 per share. That's a total purchase price of over $10.5 million. Cohen now owns over 9% of the company's outstanding shares.
Insider buying like this tends to signal bullish sentiment. Is it time for investors to take another look at this famous meme stock?
Is GameStop becoming a promising company?
Since becoming CEO, Cohen has tried several strategies to revitalize the business. GameStop has waded into the world of collectibles and used firm capital to purchase Bitcoin, mimicking a Bitcoin treasury strategy. The stock is down about 21% over the past year.
Through the first nearly 10 months of 2025, GameStop has seen about a 5% decline in hardware, its largest business, which involves selling video game consoles and other related hardware. The company's software business, which now accounts for the smallest share of revenue, has seen revenue plummet 27% year over year. However, GameStop's collectibles business, which includes the sale of apparel, toys, trading cards, and gadgets, has seen revenue grow 55% in this period.
GameStop has also been reducing expenses and selling off assets by shrinking its brick-and-mortar footprint. Through the first nearly 10 months of the year, the company significantly increased operating cash flow and generated $0.67 of diluted earnings per share, much improved from the same period a year ago.
Ultimately, GameStop's financials are in much better shape. The hardware business is not seeing a significant decline; the software business continues to leak; and collectibles is showing strong growth. Investors will be tasked with determining at what point, if at all, revenue can inflect and return to growth.
Only one Wall Street analyst covers GameStop, according to Yahoo! Finance. This analyst projects nearly $1 of EPS in 2026 and total revenue of $4.16 billion, both of which reflect year-over-year growth. With a $9.7 billion market cap, that means GameStop trades at about 2.3 times revenue and close to 22 times forward earnings.
While GameStop can likely continue to cut costs, the earnings multiple seems rich for a company that has yet to stabilize revenue in its largest business and is still trying to figure out its future. The situation has improved, but I'm still avoiding it right now.
Should you buy stock in GameStop right now?
Before you buy stock in GameStop, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and GameStop wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $464,439!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,150,455!*
Now, it’s worth noting Stock Advisor’s total average return is 949% — a market-crushing outperformance compared to 195% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 24, 2026.
Bram Berkowitz has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin and Chewy. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

CEO Ryan Cohen Just Bought $10 Million of GameStop Stock. Is it Time to Give This Meme Stock Another Look?

As the saying goes, there are many possible reasons for an insider to sell a stock, but only one reason to buy -- they expect to make money. So let's look at two noteworthy recent insider buys.
On Tuesday, GameStop's Director, Alain Attal, made a $250,798 buy of GME, purchasing 12,000 shares at a cost of $20.90 a piece. So far Attal is in the green, up about 4.5% on their buy based on today's trading high of $21.83. GameStop is trading up about 2.6% on the day Wednesday. Before this latest buy, Attal made one other buy in the past year, purchasing $257,500 shares at a cost of $25.75 a piece.
And on Friday, Director Bernd R. Seizinger purchased $103,770 worth of Oncolytics Biotech, purchasing 100,000 shares at a cost of $1.04 a piece. Oncolytics Biotech is trading up about 6.5% on the day Wednesday.
Also see:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Wednesday 1/21 Insider Buying Report: GME, ONCY

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in GameStop Corp (Symbol: GME), where a total volume of 128,814 contracts has been traded thus far today, a contract volume which is representative of approximately 12.9 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 254.1% of GME's average daily trading volume over the past month, of 5.1 million shares. Particularly high volume was seen for the $21 strike call option expiring January 23, 2026, with 12,367 contracts trading so far today, representing approximately 1.2 million underlying shares of GME. Below is a chart showing GME's trailing twelve month trading history, with the $21 strike highlighted in orange:
Strategy Inc (Symbol: MSTR) options are showing a volume of 422,259 contracts thus far today. That number of contracts represents approximately 42.2 million underlying shares, working out to a sizeable 206.5% of MSTR's average daily trading volume over the past month, of 20.4 million shares. Especially high volume was seen for the $195 strike call option expiring January 23, 2026, with 17,092 contracts trading so far today, representing approximately 1.7 million underlying shares of MSTR. Below is a chart showing MSTR's trailing twelve month trading history, with the $195 strike highlighted in orange:
And Corvus Pharmaceuticals Inc (Symbol: CRVS) options are showing a volume of 31,887 contracts thus far today. That number of contracts represents approximately 3.2 million underlying shares, working out to a sizeable 186.7% of CRVS's average daily trading volume over the past month, of 1.7 million shares. Especially high volume was seen for the $16 strike call option expiring February 20, 2026, with 3,261 contracts trading so far today, representing approximately 326,100 underlying shares of CRVS. Below is a chart showing CRVS's trailing twelve month trading history, with the $16 strike highlighted in orange:
For the various different available expirations for GME options, MSTR options, or CRVS options, visit StockOptionsChannel.com.
Also see:
Top Ten Hedge Funds Holding LRGF
Funds Holding CDOR
BLMH Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Tuesday Option Activity: GME, MSTR, CRVS

Key Points
Robinhood offers innovative financial services that appeal to a certain crowd, and it's growing quickly.
It offers exposure to cryptocurrency, which the market loves, but it's also risky.
Robinhood stock has an expensive valuation.
Investment platform Robinhood Markets (NASDAQ: HOOD) stock has exploded over the past year, up nearly 370%. It's enjoying strong growth as well as investor confidence in its innovative investing options, and the stock is now well past its previous highs as it soars into the stratosphere.
Let's see if it can maintain this growth over the next five years and what might be happening at Robinhood.
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The new Robinhood
Robinhood is a clever name for a company aiming to help the everyman get richer. It rose to fame with its free trades that attract the novice investor, and some infamy as it became the platform of choice for meme investors who generated some short-squeezes a few years ago.
It has moved past that to become a real player in fintech. Although its core product is its trading platform, it offers a large suite of financial services through its financial ecosystem, including bank accounts and a credit card. Its offerings are innovative, delivering a truly unique experience in its field, and its value-driven business approach appeals to savvy investors. Robinhood is adding new customers at a rapid pace, and it's monetizing them with fee-based products and a premium membership program.
It reported stellar results in the 2025 first quarter. Revenue increased 50% year over year, and although much of it was driven by a 100% increase in cryptocurrency revenue, it was also driven by higher sales of other trading products like equities, which were up 44%, and options, which increased 56%. There were many other highlights, including a 44% increase in deposits annualized over the past 12 months and a 14% increase in net interest revenue. Net income was up 114% from last year.
Funded customers increased 1.9 million, or 8%, to 25.8 million, and average revenue per user increased 39% to $145. It added 550,000 gold members, or 1.5 million year over year to nearly double last year's figure. Gold members pay $5 a month or $50 annually and get perks like 3% matching in individual retirement accounts (IRA) and 4% interest on uninvested funds.
Opportunities, risks, and valuation
The company is constantly releasing new products and upgrading its platform. It recently launched a slew of new services including Robinhood Strategies and Robinhood Banking, and it's rolling out more services internationally. It has more plans for the remainder of the year, such as expanding the crypto platform and continuing the banking rollout. It recently announced a new tokenization product for European customers that gives them the opportunity to buy tokens on a blockchain that follows certain U.S. stocks.
Robinhood is taking a fresh and even visionary approach to finance that resonates with a certain demographic, and that bold vision should lead it into many growth areas over the next five years.
However, there are several risks here. The first is the focus on cryptocurrency. That focus is somewhat responsible for Robinhood's meteoric rise over the past year, but it could equally bring the company down to earth if trends change. Investing in Robinhood stock is a big thumbs-up for cryptocurrency. If you have a lot of confidence in crypto trading, Robinhood could be an excellent way to get exposure while investing in a company that has tangible assets. But it comes with volatility.
Robinhood stock is also quite expensive, trading at a P/E ratio of 62 and a price-to-sales ratio of 31. Over the next five years, it could be challenging to keep up growth at that valuation.
If you have a healthy appetite for risk and are a fan of cryptocurrency, you may be interested in taking a position in Robinhood, which could be valued a lot higher five years from now. Investors with a low risk tolerance, however, should sit this one out.
Should you invest $1,000 in Robinhood Markets right now?
Before you buy stock in Robinhood Markets, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Robinhood Markets wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,056,790!*
Now, it’s worth noting Stock Advisor’s total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of July 21, 2025
Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Where Will Robinhood Stock Be in 5 Years?

Key Points
GameStop stock is up more than sevenfold during CEO Ryan Cohen's tenure.
Cohen currently receives no salary, bonus, or stock for his compensation.
GameStop (NYSE: GME) has gained attention for its meme stock status and its continued efforts to redefine itself. This has happened under the leadership of Ryan Cohen, a CEO who does not receive a salary, cash bonuses, or stock.
GameStop's board has offered Cohen a compensation package contingent on achieving substantial growth in the stock price and the company itself. This is reminiscent of Elon Musk's compensation at Tesla, which likely played a role in the huge increase in the automaker's stock over the last few years.
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Knowing that, does the potential of this package mean investors should buy GameStop stock, or should they stay on the sidelines?
Ryan Cohen's compensation package
Under the newly announced compensation package, Cohen would receive stock options to purchase a maximum of 171,537,237 shares of the company.
The awards start if Cohen can raise the market cap to $20 billion and achieve $2 billion in cumulative earnings before interest, taxes, depreciation, and amortization (EBITDA). That would require the market cap (and by extension, the stock price) to slightly more than double in value.
GameStop generated $222 million in EBITDA over the trailing 12 months, indicating it will have to achieve huge EBITDA growth for Cohen to earn even a part of the bonus. If he meets that first goal, he receives 10% of the award.
Subsequent milestones will earn Cohen more rewards, as outlined in the chart below. But to get 100% of the award, GameStop must increase its market cap to $100 billion and cumulative EBITDA to $10 billion. The market cap goal alone would mean he has to achieve an almost 11-fold gain in the stock price.
Tranche
% of Award
Market Cap Hurdle
Cumulative EBITDA Hurdle
1
10%
$20 billion
$2 billion
2
10%
$30 billion
$3 billion
3
10%
$40 billion
$4 billion
4
10%
$50 billion
$5 billion
5
10%
$60 billion
$6 billion
6
10%
$70 billion
$7 billion
7
10%
$80 billion
$8 billion
8
15%
$90 billion
$90 billion
9
15%
$100 billion
$10 billion
At first glance, compensating Cohen in this way may make sense. When he became CEO in January 2021, the company's market cap was $1.3 billion. Today, it has risen to $9.5 billion, a more than sevenfold increase.
Moreover, GameStop has reduced selling, general, and administrative expenses during Cohen's tenure, and he has turned a money-losing company into one that earned $422 million in the trailing 12 months. Investors should also know that he will receive no compensation if he does not meet any of the benchmarks.
Can Cohen achieve that goal?
Giving Cohen a compensation package resembling Elon Musk's will likely draw investor interest. Still, Cohen must revive a company that was being made obsolete.
Initially, he responded to this challenge by expanding its e-commerce and omnichannel capabilities. He also took GameStop into the collectibles business and into Bitcoin investing.
GameStop originally earned most of its revenue through in-store video game sales. But with video game sales having moved online, the company had no reason to continue existing. Knowing that, its turnaround and return to profitability are impressive feats.
Unfortunately, GameStop has to compete with other companies in each of these businesses. This leaves it with little competitive advantage outside of its widely recognized brand. Considering that its trailing-12-month revenue fell 12% yearly to $3.8 billion, that leaves the path to success even less clear.
Is Cohen's incentive package a good reason to buy GameStop stock?
Given the state of the company, investors probably should not buy GameStop stock because of Cohen's incentive package.
With no other source of pay, Cohen has a tremendous incentive to foster growth in the company's financials and stock price. His past successes in his five years at GameStop also indicate he has a chance of achieving at least a partial success.
However, the incentive package also makes buying the stock a bet on Ryan Cohen, putting shareholders in a difficult position. Investors tend to like certainty, and without an obvious path to growth, shareholders are left having to place their full faith in the CEO's leadership.
Such conditions make GameStop a speculative stock, and investors should treat it as such. With its path forward unknown, long-term investors should consider avoiding the shares.
Should you buy stock in GameStop right now?
Before you buy stock in GameStop, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and GameStop wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $489,300!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,159,283!*
Now, it’s worth noting Stock Advisor’s total average return is 974% — a market-crushing outperformance compared to 196% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of January 9, 2026.
Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Tesla. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Will the Latest CEO Pay Package Rescue GameStop Stock?

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Coinbase Global Inc (Symbol: COIN), where a total of 192,094 contracts have traded so far, representing approximately 19.2 million underlying shares. That amounts to about 260% of COIN's average daily trading volume over the past month of 7.4 million shares. Especially high volume was seen for the $235 strike put option expiring January 02, 2026, with 6,641 contracts trading so far today, representing approximately 664,100 underlying shares of COIN. Below is a chart showing COIN's trailing twelve month trading history, with the $235 strike highlighted in orange:
Amazon.com Inc (Symbol: AMZN) options are showing a volume of 823,094 contracts thus far today. That number of contracts represents approximately 82.3 million underlying shares, working out to a sizeable 235.4% of AMZN's average daily trading volume over the past month, of 35.0 million shares. Particularly high volume was seen for the $235 strike call option expiring January 02, 2026, with 47,324 contracts trading so far today, representing approximately 4.7 million underlying shares of AMZN. Below is a chart showing AMZN's trailing twelve month trading history, with the $235 strike highlighted in orange:
And GameStop Corp (Symbol: GME) saw options trading volume of 135,279 contracts, representing approximately 13.5 million underlying shares or approximately 219.1% of GME's average daily trading volume over the past month, of 6.2 million shares. Particularly high volume was seen for the $21 strike call option expiring January 02, 2026, with 8,864 contracts trading so far today, representing approximately 886,400 underlying shares of GME. Below is a chart showing GME's trailing twelve month trading history, with the $21 strike highlighted in orange:
For the various different available expirations for COIN options, AMZN options, or GME options, visit StockOptionsChannel.com.
Also see:
FAZE market cap history
Top Ten Hedge Funds Holding JONE
Funds Holding GBIL
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy Friday Option Activity: COIN, AMZN, GME

Rule Breaker Investing: Old, New, Borrowed & Blue, Vol. 10

Key Points
GameStop stock has fallen 73% from its 2021 meme stock peak, and analysts expect more downside ahead.
Amazon benefits from gaming's digital shift through Luna, Prime Gaming, Twitch, AWS infrastructure, and e-commerce.
Every trend hurting GameStop (digital distribution, cloud gaming, online infrastructure) seems to be a revenue stream for Amazon.
Remember the skyrocketing meme stocks of 2021? Gosh, how time flies.
It has been almost five years since social media posts ignited short squeezes in GameStop (NYSE: GME) and AMC Entertainment Holdings (NYSE: AMC) shares. From the closing bell on Jan. 20, 2021, to the end of Jan. 27, 2021 (just one week later), AMC's stock spiked 570% higher while GameStop soared 788%.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
But the joy didn't last long. AMC's stock is down 98% from that peak, and GameStop has lost 73% as of Dec. 17, 2025. The average analyst recommendation for GameStop is underperform with a price target 41% below the current level. Keep those expected price drops up for a few more years, and there won't be much left.
I hate to say it, but GameStop is starting to look obsolete. When was the last time you bought a video game from a local store instead of just downloading it to your favorite console? GameStop's stock may very well go to zero in the long run.
Amazon is eating GameStop's lunch
On the upside, I can recommend one of GameStop's top competitors for new money in 2026. The same digital industry shift that's destroying GameStop has big winners too. In particular, Amazon (NASDAQ: AMZN) benefits in several ways from the game-download trend.
Amazon Luna: The e-commerce giant has its own cloud-based gaming service -- no discs, no downloads, just run the games on Amazon's servers and stream the experience to your favorite web browser or mobile device.
Prime Gaming: Amazon Prime subscribers have free access to many Luna games and in-game items.
Digital game sales: Amazon sells download codes for Sony PlayStation, Microsoft Xbox, Nintendo Switch, and PC games. You get the same product as GameStop's, with no retail footprint needed. It's true that each gaming platform also offers direct downloads, but Amazon helps you organize your gaming buys across many device types.
AWS gaming infrastructure: Amazon Web Services (AWS) powers online multiplayer, game streaming, and patch/update delivery for many major publishers. This way, Amazon profits whether you play on PlayStation, Xbox, or PC.
Twitch: Amazon owns the dominant game-streaming video platform. Twitch also integrates with Prime Gaming for cross-promotion.
E-commerce for hardware: And Amazon is happy to serve if you're looking for consoles, controllers, or accessories (the physical stuff GameStop's brick-and-mortar stores rely on).
Gaming is just a bonus; Amazon is a great buy anyway
And here's the best part. With or without its gaming industry muscle, Amazon stock is a fantastic buy right now.
Amazon's annualized revenue growth has averaged 11.5% over the last three years, with 13% year-over-year jumps in the last two reports. The company generated $10.6 billion of free cash flow over the last year, based on a massive $691 billion in top-line revenues and $120 billion of capital expenses. Those artificial intelligence (AI) data centers won't just build themselves, you know.
This trillion-dollar tech titan is earning its market cap the honest way, with excellent financials and strong growth prospects. Sorry, GameStop, but Amazon is the first place I'd start looking for a buy related to the video game industry.
Should you buy stock in Amazon right now?
Before you buy stock in Amazon, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Amazon wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $511,196!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,047,897!*
Now, it’s worth noting Stock Advisor’s total average return is 951% — a market-crushing outperformance compared to 192% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of December 19, 2025.
Anders Bylund has positions in Amazon. The Motley Fool has positions in and recommends Amazon and Microsoft. The Motley Fool recommends Nintendo and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Gamestop Could Be Going to $0. Buy This Stock Instead.

The S&P 500 Index ($SPX) (SPY) on Wednesday closed up by +0.67%, the Dow Jones Industrials Index ($DOWI) (DIA) closed up by +1.05%, and the Nasdaq 100 Index ($IUXX) (QQQ) closed up by +0.42%. December E-mini S&P futures (ESZ25) rose +0.66%, and December E-mini Nasdaq futures (NQZ25) rose +0.44%.
Stock indexes shook off early weakness on Wednesday and settled higher, with the S&P 500 posting a 6-week high, the Nasdaq 100 a 5-week high, and the Dow Jones Industrial Average a 3.5-week high. Stocks rallied on Wednesday after the Fed cut interest rates by 25 bp and Fed Chair Powell took a less hawkish tone than anticipated. Stocks also found support after the Fed raised its US 2025 GDP forecast and lowered its core PCE price forecast. In addition, the Fed boosted market liquidity by saying it will purchase $40 billion of T-bills per month to rebuild reserves.
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Stocks found some support today amid signs of easing wage pressures, which are dovish for Fed policy, after the US Q3 employment cost index rose by +0.8% q/q, slightly weaker than the +0.9% q/q expected.
US MBA mortgage applications rose +4.8% in the week ended December 5, with the purchase mortgage sub-index down -2.4% and the refinancing mortgage sub-index up +14.3%. The average 30-year fixed rate mortgage rose +1 bp to 6.33% from 6.32% in the prior week.
The FOMC, as expected, cut the fed funds target range by 25 bp to 3.50%-3.75% in a 9-3 vote and said it will consider "the extent and timing of additional adjustments" to interest rates. The FOMC noted that "job gains have slowed this year" and "downside risks to employment rose in recent months." Also, "inflation has moved up since earlier in the year and remains somewhat elevated."
The Fed's "dot plot" of interest rate projections shows the median forecast for the fed funds rate is 3.375% for the end of 2026, implying one 25 bp rate cut next year, unchanged from September.
The FOMC raised its 2025 GDP estimate to 1.7% from 1.6% in September and raised its 2026 GDP estimate to 2.3% from 1.8% in September. The FOMC cut its 2025 core PCE price estimate to 3.0% from 3.1% in September and cut its 2026 core PCE price estimate to 2.5% from 2.6% in September.
The Fed said it will begin buying $40 billion of Treasury bills per month starting December 12 to rebuild reserves in the financial system, which shrank as it tightened its balance sheet.
Fed Chair Powell signaled the Fed may now pause its interest rate cutting campaign when he said the Fed is now "within a range of plausible estimates of neutral and leave us well positioned to determine the extent and timing of additional adjustments" to rates. He added that he doesn't think a rate hike is anybody's base case for the Fed's next policy move.
The markets this week will focus on Thursday’s weekly initial unemployment claims, expected to increase by +29,000 to 220,000.
The markets are discounting a 22% chance that the FOMC will cut the fed funds target range by 25 bp at the January 27-28 FOMC meeting.
Q3 corporate earnings season is drawing to a close as 495 of the 500 S&P companies have released results. According to Bloomberg Intelligence, 83% of reporting S&P 500 companies exceeded forecasts, on course for the best quarter since 2021. Q3 earnings rose +14.6%, more than doubling expectations of +7.2% y/y.
Overseas stock markets settled lower on Wednesday. The Euro Stoxx 50 closed down -0.18%. China’s Shanghai Composite closed down -0.23%. Japan’s Nikkei Stock 225 fell from a 3.5-week high and closed down -0.10%.
Interest Rates
March 10-year T-notes (ZNH6) on Wednesday closed up +4 ticks. The 10-year T-note yield fell -4.1 bp to 4.147%. Mar T-note futures rebounded from a 3-month low on Wednesday and moved higher, and the 10-year T-note yield fell from a 3-month high of 4.207%. T-notes found support after the US Q3 employment index rose less than expected, a dovish factor for Fed policy. T-notes added to their gains after the FOMC cut its 2025 and 2026 US core PCE price estimates and after Fed Chair Powell said that he doesn't think a rate hike is anybody's base case for the Fed's next policy move.
T-notes were initially under pressure early Wednesday amid concerns that a divided FOMC will signal a hawkish rate cut of -25 bp, but then signal policy will remain on hold for an extended period. T-notes also saw some negative carryover from hawkish ECB comments on Wednesday, which pushed the German 10-year bund yield to an 8.75-month high.
European government bond yields are moving higher today. The 10-year German bund yield climbed to an 8.75-month high of 2.895% and finished up by +0.1 bp to 2.851%. The 10-year UK gilt yield rose to a 2.5-week high of 4.554% and is up by +0.1 bp to 4.506%.
ECB President Lagarde said the ECB will likely raise its economic growth forecasts at next week's policy meeting, reflecting a more optimistic outlook.
ECB Governing Council member Simkus said, "We have an inflation rate that is more or less close to the 2% target in the medium term, which suggests no need for a change in interest rates, not only at the next ECB meeting in December but also in further meetings."
Swaps are discounting a 1% chance for a -25 bp rate cut by the ECB at its next policy meeting on December 18.
US Stock Movers
Chip makers rallied on Wednesday, helping lift the broader market. Micron Technology (MU) and Marvell Technology (MRVL) closed up more than +4%, and Applied Materials (AMAT) and Qualcomm (QCOM) closed up more than +3%. Also, Analog Devices (ADI), Broadcom (AVGO), GlobalFoundries (GFS), Lam Research (LRCX), Microchip Technology (MCHP), NXP Semiconductors NV (NXPI), KLA Corp (KLAC), and Texas Instruments (TXN) closed up more than +1%.
Mobile grocery delivery service companies retreated on Wednesday after Amazon.com said it has expanded same-day delivery for perishable groceries to over 2,300 cities and towns, with more coming next year. Maplebear (CART) closed down more than -6% and Uber Technologies (UBER) closed down more than -5% to lead losers in the S&P 500. Also, DoorDash (DASH) closed down more than -4%.
Photronics (PLAB) closed up more than +45% after reporting Q4 adjusted EPS of 60 cents, well above the consensus of 45 cents, and forecasting Q1 adjusted EPS of 51 cents to 59 cents, better than the consensus of 46 cents.
GE Vernova (GEV) closed up more than +15% to lead gainers in the S&P 500 after boosting its stock buyback program to $10 billion and doubling its quarterly dividend to 50 cents.
EchoStar (SATS) closed up more than +10% after Morgan Stanley upgraded the stock to overweight from equal weight with a price target of $110.
Middleby Corp. (MIDD) closed up more than +9% after Jeffries upgraded the stock to buy from hold with a price target of $175.
American International Group (AIG) closed up more than +6% after Insurance Inside reported that Chubb made an informal takeover offer for the company.
PepsiCo (PEP) closed up more than +3% after JPMorgan Chase upgraded the stock to overweight from neutral with a price target of $164.
Waters Corp. (WAT) closed up more than +2% after Wolfe Research upgraded the stock to outperform from peer perform with a price target of $480.
AeroVironment (AVAV) closed down -13% after cutting its 2026 adjusted EPS forecast to $3.40-$3.55 from a previous forecast of $3.60-$3.70, below the consensus of $3.63.
Netflix (NFLX) closed down more than -4% after Paramount said in a letter to Warner Bros. Discovery holders that its offer of $30 per share is superior to Netflix’s offer.
GameStop (GME) closed down more than -4% after reporting Q3 net sales fell -4.6% y/y to $821.0 million.
Noble Corp Plc (NE) closed down more than -2% after JPMorgan Chase downgraded the stock to neutral from overweight.
T Rowe Price Group (TROW) closed down more than 1% after reporting that assets under management in Nov fell -0.2% m/m to $1.79 trillion.
Earnings Reports(12/11/2025)
Broadcom Inc (AVGO), Ciena Corp (CIEN), Costco Wholesale Corp (COST), Lululemon Athletica Inc (LULU), RH (RH).
On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	42.21 20.72
Price/Sales	2.56 0.69
P/B	1.93 1.91
P/FCF	19.92 15.39

Indicator	TTM Median
ROE	4.35 14.63
ROA	3.31 5.12
ROI	4.04 8.44
Net Worth	12.18 0.90
Quick Ratio	7.89 0.88
Current Ratio	8.39 1.45

Indicator	TTM Median
Net Profit Margin	5.66 5.72
Operating Margin	2.65 8.45
Gross Margin	30.05 38.39
Return on tangible equity	4.35 21.87

Indicator	TTM Median
EPS	0.24 0.42
EPS Forecast	0.19 0.38
Revenue	972.00M 185.00M
Gross Profit	253.00M —
EBITDA	0.00 —

GameStop Corporation

TTM metrics for the latest quarter under IFRS and their historical dynamics

Valuation

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Efficiency

Other ratios

Revenue