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.

Фундаментальные метрики GameStop показывают смешанную картину. Mультипликатор P/E на уровне 42.21 значительно выше медианы отрасли, что указывает на возможную переоцененность акций, особенно с учетом его динамики за последние годы. В то же время, соотношение цена/выручка (P/S) также значительно превышает медиану, что указывает на высокие ожидания от компании. Однако, несмотря на это, выручка и чистая прибыль показывают положительные результаты, что является хорошим знаком. Высокие значения текущего и быстрого коэффициентов указывают на сильную ликвидность. С другой стороны, показатели рентабельности (ROE, ROA) и операционной маржи остаются ниже медианы, что вызывает опасения по поводу эффективного использования ресурсов. Долговая нагрузка ниже медианы, что является позитивным фактором, но уровень долга все еще остается высоким. Общая картина свидетельствует о том, что компания имеет как сильные, так и слабые стороны, что требует внимательного анализа перед принятием инвестиционного решения.

GameStop Corporation

Key Points
GameStop had roughly $9 billion in cash and equivalents as of the company's most recent update.
While the company's cash position gives it solid financial foundations, the stock's outlook heavily depends on how management uses the money.
GameStop is expected to make a big acquisition, but investing along those lines looks like a gamble.
GameStop (NYSE: GME) has undergone a remarkable transformation, thanks in large part to its moment in the sun as a red-hot meme stock. While the company's share price has pulled back substantially from its lifetime high of nearly $87 per split-adjusted share reached in January 2021, the stock's explosive valuation gains paved the way for the company to undertake a dramatic financial repositioning.
In response to soaring gains for its share price driven by short squeezes and meme-stock momentum, GameStop moved to sell new shares in order to raise funds. While the stock sales had a dilutive impact for shareholders, they had a transformative impact on the retailer's balance sheet. The share offerings allowed the company to pay down its debt and build a massive cash position.
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The company closed out its last fiscal year, which ended Jan. 31, with roughly $9 billion in cash and equivalents. Meanwhile, the company has a market capitalization of roughly $11.5 billion as of this writing on April 22. Despite the very strong cash position, investors may want to hold off on buying GameStop stock right now.
What's next for GameStop?
With a huge cash position relative to its market capitalization, GameStop is no longer the dangerously speculative stock that it was at the height of its meme-stock phase. CEO Ryan Cohen has a big cash balance to work with, and the company is broadly expected to make a major acquisition in a retail-related space. While GameStop's highly anticipated acquisition move has the potential to be accretive for shareholders, looking for big gains on a pending purchase could be more akin to gambling than investing.
As it currently stands, GameStop's core operations revolve around its namesake gaming retail business. Unfortunately, the performance outlook for this business isn't promising.
GameStop's revenue declined roughly 14% year over year in the fourth quarter of the company's last fiscal year, which ended Jan. 31. While earnings per share rose 63% year over year to come in at $0.49, the gains were driven by cost-cutting measures taken by the company and contributions from its investments.
With digital distribution continuing to eat into physical retail sales of games and mobile, PC, and combination handhelds such as Valve's Steam Deck seemingly continuing to eat into demand for traditional console and handheld platforms, GameStop's gaming retail business will likely continue to face long-term pressures. While the company's collectibles business has delivered periods of strong growth, performance has also been uneven -- and it's unlikely the category can offset headwinds facing the gaming retail segment.
With those dynamics in mind, the next major phase for GameStop is likely tied to which company or companies they choose to acquire. The company's massive cash pile needs to be put to good use, and a smart buyout could be the game changer GameStop investors are craving. Cohen has said in interviews that his company is looking at acquiring a consumer-goods company that is both significantly larger than GameStop and undervalued.
While the eventual announcement of an acquisition could create bullish momentum for GameStop, expectations are high -- and a poorly received buyout could also result in significant sell-offs for the stock. That's why I can't recommend GameStop stock until Cohen makes it clear what he wants to buy.
Should you buy stock in GameStop right now?
Before you buy stock in GameStop, consider this:
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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $498,522!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,276,807!*
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Don't Buy GameStop Stock Until This Happens

Key Points
GameStop isn't going to $0 anytime soon, but the stock still has a lot of downside.
The company is looking to make a big acquisition, which adds risk.
To answer the headline off the bat, no, GameStop's (NYSE: GME) stock is not going to $0 anytime soon.
The reason is that it has a fortress of a balance sheet. It has $9 billion in cash and marketable securities to go along with another nearly $370 million worth of Bitcoin. Meanwhile, its nearly $4.2 billion in debt is in the form of convertible notes that pay 0% interest and can be settled in stock.
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That said, the stock could have a lot of potential downside from here. The company has a market cap of over $11 billion and an enterprise value (EV) of around $6.5 billion. If, instead of using a price-to-earnings (P/E) ratio, we use an EV-to-earnings ratio because of GameStop's large cash position, the stock trades at a multiple of about 15.5. For a company that saw declining revenue last year, that's a pretty healthy multiple.
CEO Ryan Cohen deserves some credit, but...
Now, you have to give a lot of credit to CEO Ryan Cohen, who has done a nice job of reducing costs and turning the company profitable. He's also done a great job of leaning into the popularity of trading cards, and the deal he struck with card-grading company PSA to become an authorized PSA card dealer really has helped turn around GameStop's fortunes.
Last year, while sales of GameStop's traditional video game and console segments were plunging, its collectibles business saw a nearly 48% increase in sales to over $1 billion. The segment went from 19% of its total sales in 2024 to 29% in 2025.
The collectibles market, especially for trading cards like Pokémon, is red hot, but this is a niche business with ups and downs. The company is continuing to lean into it, though, recently announcing a digital card platform where card collectors can buy packs of PSA-graded cards, ranging from $25 to $2,500, that are digitally opened and then stored in the PSA vault.
What happens with GameStop stock, though, ultimately comes down to what the company does with its cash. In late January, Cohen said he wants to make a huge acquisition of an undervalued publicly traded company in the consumer space that will completely transform GameStop. However, if he's going to add debt for a deal and look to cut costs to succeed, I don't think that will work out too well.
While anything can happen, I don't think overpaying for a bad business while waiting for it to use its cash to buy a good, undervalued business is the best strategy.
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 $500,572!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,223,900!*
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Is GameStop Stock Going to $0?

Key Points
Avis Budget was experiencing a short squeeze, which fell apart this week.
The stock has traded wildly, which has little correlation to the underlying business performance.
Rental cars are a tough market to operate in.
Shares of Avis Budget Group (NASDAQ: CAR) have collapsed 53.7% this week, according to data from S&P Global Market Intelligence. The care rental company experienced a massive short squeeze in the past few weeks, with retail traders piling in against large institutional short positions before the party ended.
As of this writing at 11:00 AM EST on Friday, April 24th, Avis Budget Group is in a 67% drawdown after rising over 500% at one point over the last month. Here's why the stock finally fell this week, and what investors should do going forward.
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Short squeeze gains turn to losses
A short squeeze can occur in a small-cap stock when a high % of its outstanding shares are sold short. Short sales occur when a stock is borrowed from an investor, who then sells it into the open market, aiming to profit by repurchasing it at a lower price. A short squeeze can happen when a bunch of investors try to buy back their shares at once, creating upward momentum in the share price that can get out of control.
Online investors looked at Avis Budget Group a month ago and saw the opportunity for a short squeeze, which finally occurred over the last few weeks. The % of Avis stock sold short was over 20%, while a large portion of the outstanding shares was held by institutional funds and not available for trading. This triggered a massive short squeeze once retail started piling into the stock.
This week, the short squeeze broke rapidly, with the share price down 54% as of this writing. When the market cap reached tens of billions of dollars, the short squeeze ran out of ammo, similar to what happened to GameStop years ago.
Should you buy Avis Budget stock?
Piling into short squeezes is the exact opposite of what smart investors do: they focus on fundamental analysis. Looking at Avis Budget Group, the stock trades at a low price-to-earnings (P/E) ratio of 7.2. However, the rental car space is generally hypercompetitive with small growth prospects and higher disruption risk. Avoid buying the dip on Avis stock.
Should you buy stock in Avis Budget Group right now?
Before you buy stock in Avis Budget Group, 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 Avis Budget Group 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 $500,572!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,223,900!*
Now, it’s worth noting Stock Advisor’s total average return is 967% — a market-crushing outperformance compared to 199% 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.
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Brett Schafer 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.

Why Shares of Avis Budget Group Collapsed This Week

Key Points
GameStop's cash-rich balance sheet provides a floor, but a lack of top-line growth may limit the ceiling.
EPR Properties is an experiential REIT, with more than half of its portfolio in movie theaters and "eat and play" venues.
REITs are historically ho-hum performers, but EPR has almost doubled the Russell 1000 since going public in 1997.
There's a bullish case to be made for GameStop (NYSE: GME). Despite skating through four fiscal years of declining revenue growth, CEO Ryan Cohen has done a good job of playing the hand he has been dealt. With his small-box stores facing a sunset industry crisis -- as physical software distribution goes digital -- Cohen found a way to limit top-line declines by shifting to collectibles.
He leaned in on his meme stock, issuing shares at frenzied peaks. The move may have bloated GameStop's share count, but the war chest of $9 billion -- a net position of $5 billion after backing out more than $4 billion in debt -- covers nearly half of its market cap. With GameStop finally cranking out positive operating income in fiscal 2025 after six years of losses, there's a legitimate floor here. What if there was an even safer retail stock -- one that even pays out a generous dividend -- if you were looking for a more conservative way to play the growing leisure market?
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Buying the basket
GameStop stock has historically been a way to own the entire video game stock market. Instead of buying individual console makers or hardware developers, you can buy the leading specialty retailer that cashes in regardless of who comes out on top. Unless the gaming market is in a secular decline -- or in GameStop's case, a transition to direct online delivery -- it's a clever way to play the industry.
EPR Properties (NYSE: EPR) offers an even broader basket. It's a real estate investment trust (REIT) that GameStop investors may like. Unlike REITs that dabble in the overall commercial or residential real estate markets, EPR is built for fun. It owns experiential properties, including multiplexes and "eat and play" venues, and recently beefed up its amusement parks portfolio.
It doesn't run the businesses. EPR just leases out the properties, collecting a steady stream of rising rent payments that it largely passes on to shareholders in the form of a 6.3% yield. Theater chains make up more than a third of its business, aligning GameStop investors with another popular meme stock. A quarter of its business is "eat and play" establishments including arcades, high-tech golf-driving ranges, and other family entertainment centers. Yes, gamers. EPR is already making money off of you. Wouldn't you want to be on the receiving end?
EPR is a winner. It's a 21-bagger since going public almost 30 years ago, more than doubling the overall REIT market and nearly doubling the Russell 1000. Unless you think the country is going to go cold turkey on having fun -- and if you're already a GameStop investor, you probably don't think that -- EPR is a high-yielding way to benefit from the whimsy. The ceiling may not be as high, but the potential downside should also be easier to stomach.
Should you buy stock in EPR Properties right now?
Before you buy stock in EPR Properties, 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 EPR Properties 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 $502,837!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,241,433!*
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Rick Munarriz has positions in EPR Properties. The Motley Fool has positions in and recommends EPR Properties. 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.

Forget GameStop: This Boring but Beautiful Dividend Stock Is the Safer Retail Buy

AI’s Most Dangerous Moment

Key Points
SpaceX could raise as much as $75 billion at a valuation of $2 trillion.
There is incredible hype surrounding the IPO.
However, investors should try to remain disciplined.
The SpaceX initial public offering (IPO) is coming, and it's going to be massive. Media reports indicate that SpaceX has confidentially filed for its IPO, seeking to raise as much as $75 billion at a valuation that could be in the range of $1.75 trillion to $2 trillion, which would make it the largest IPO in history and instantly put in an elite group of stocks with over a $1 trillion market cap.
SpaceX is a one-of-a-kind company. It uses reusable rockets to help launch astronauts into space, and has also set up a low-orbit network of satellites called Starlink that can provide high-speed internet anywhere on Earth.
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While its potential is immense, SpaceX could at least start out as the ultimate meme stock. I would recommend investors avoid this unprecedented IPO.
Why SpaceX could start out as a meme stock
Meme stocks tend to be driven by retail investors, trade at massive valuations, and deviate from their fundamentals. The meme stock era really began with GameStop during the pandemic, but has become almost normal amid a multiyear bull market, driven by artificial intelligence that has led to some astounding valuations on the belief that AI could change everything.
While SpaceX, founded by Tesla CEO and Founder Elon Musk, has much more potential than GameStop, it will likely make its public market debut at an enormous valuation. Earlier this year, Reuters reported that SpaceX made a profit of $8 billion in 2025 on revenue of roughly $16 billion.
Assuming SpaceX goes public at a valuation of $1.75 trillion, the stock would trade at nearly 219 times trailing earnings and over 109 times trailing revenue. Even for a company with as much potential as SpaceX, which has talked about colonizing Mars one day, this valuation seems mind-boggling.
SpaceX also plans to allocate as much as 30% of its raise to retail investors, three times the typical amount, so there's going to be a lot of opportunity for retail investors to drive trading activity, which makes the environment for short sellers that much more difficult. Plus, Musk has a cult-like following, which some argue has led to Tesla's monstrous valuation of 165 times forward earnings, down from a high of 300 not long ago.
On the idea of SpaceX becoming a meme stock, Roundhill Investments CEO Dave Mazza recently told MarketWatch that the company "clearly has some of the ingredients: a massive narrative, a founder with a loyal following, and a valuation likely driven in part by future potential rather than just current fundamentals."
Why investors should avoid the IPO
As the IPO approaches, there will be serious hype, and investors will be tempted to buy shares at whatever price they are offered. However, I would actually caution against buying this IPO.
Space is a new sector, and SpaceX could grab a controlling share of the market. However, nobody knows how the sector or the company will develop, and investors are being asked to pay a huge premium out of the gate.
But even if you are gung-ho on the stock and believe SpaceX is the real deal, I still strongly suspect that the stock will be much cheaper for patient investors who can wait three to six months. That's because most IPOs have lock-up provisions that prevent insiders and early investors, often those who own large blocks of shares, from selling right out of the gate. Lock-up provisions typically range from 90 to 180 days.
Insiders and early investors are often tempted to sell at least a portion of their shares because they have likely held them for years and could be worth billions, or even tens or hundreds of billions, in the case of SpaceX.
If you look back at big IPOs in 2025, many opened big and then sold off after a few months, as the hype faded or lock-up provisions expired. I expect SpaceX will be no different, and potentially in a more magnified way, given the valuation and hype surrounding the IPO.
Where to invest $1,000 right now
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SpaceX Could Be the Ultimate Meme Stock. Investors Should Avoid This Unprecedented IPO.

Key Points
GameStop's valuation is now not as disconnected from the company's underlying value.
A $9 billion war chest, coupled with its crypto reserves, helps to somewhat justify the company's $10.5 billion market cap.
However, still expensive on a price-to-tangible-book basis, unless GameStop quickly announces an acquisition that wows investors, shares are at risk of further price drops.
A far cry from its meme-stock heyday, shares in GameStop (NYSE: GME) have traded fairly rangebound over the past year. At the same time, the video game retailer has built an impressive cash and crypto war chest.
GameStop has around $9 billion in cash on hand, along with Bitcoin worth around $368 million. Considering this large position in liquid assets, on the surface, GameStop's valuation no longer appears fully out of sync with its underlying value.
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At current prices, GameStop has a market cap of around $10.5 billion. Yet, while GameStop may be cheaper than it's been in years, don't assume it has become one of the undervalued stocks. Shares instead trade at a premium to tangible book value. This premium could evaporate if the company falls further short of investor expectations.
GameStop and its balance sheet transformation
GameStop's war chest has grown considerably, but it's not as if this is the product of high profits or lucrative asset sales. Rather, the company raised this additional capital, largely through the sale of convertible debt in two separate offerings.
From these offerings, GameStop borrowed a total of $4.2 billion. The flipside, however, is that GameStop must eventually convert these notes into newly issued shares. The notes mature in April 2030 and June 2032. At maturity, GameStop will need to either refinance the debt or swap the notes for common stock at conversion prices ranging from $28.91 to just under $30 per share.
However, it's not just the specter of added share dilution that has Wall Street skeptical. Among the smart money, skepticism runs high about other aspects of the stock and GameStop Chairman Ryan Cohen's current game plan.
Wall Street isn't impressed, and you shouldn't be either, at least not yet
Steve Eisman, a professional investor made famous by The Big Short, is doubtful of GameStop's latest gambit. He doesn't think the company can both successfully acquire other retailers and essentially liquidate its legacy operations through store closures and aggressive cost-cutting.
Eisman isn't the only one bearish on this heavily followed video game stock. Last year, Wall Street analysts, like Wedbush's Michael Pachter, noted that GameStop remained valued more on hype than on fundamentals, a view that has yet to change. Take a look at GameStop's financials, and it's easy to come to the same conclusion.
GameStop has a tangible book value of only $12.14 per share, more than 47% below its current stock price. I agree with analysts like Pachter that it makes little sense to pay a high premium for what's essentially a holding company.
Still, if GameStop fails to make a deal soon and investors grow wary, the opportunity to buy in at or below tangible book value could emerge. If it finally becomes a bona fide value stock, the prospect of GameStop putting its high cash position to good use, or any use for that matter, starts appearing a lot more promising.
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 $555,526!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,156,403!*
Now, it’s worth noting Stock Advisor’s total average return is 968% — a market-crushing outperformance compared to 191% 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.
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Thomas Niel has positions in Bitcoin. The Motley Fool has positions in and recommends Bitcoin. 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's Cash Reserves Hit $9 Billion, but Wall Street Analysts Are Skeptical About Its Potential

Key Points
Gamestop has accumulated a boatload of cash.
The company has said it is looking to make an acquisition.
Through the issuance of equity and convertible debt over the years as its stock price rode the meme craze, GameStop (NYSE: GME) and CEO Ryan Cohen find themselves with a stockpile of cash.
The company had $9 billion in cash and marketable securities on its balance sheet at the end of January and an additional $368.4 million in Bitcoin. It also has long-term debt of nearly $4.2 billion, although these are convertible notes that pay no interest, so it is essentially more like a future equity offering.
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When GameStop acquired 4,701 bitcoins in May 2025, it looked like the company might be taking a page out of Strategy's playbook and becoming an aggressive accumulator of the cryptocurrency and a key part of its strategy. However, it hasn't added to or sold its position, and this now looks like a one-off trade.
With so much cash on hand, investors are wondering what the company plans on doing with it. In January, Cohen stated that he wanted to make a large acquisition in the consumer space. Let's look at three potential acquisition candidates.
Is Best Buy the best buy?
When Cohen said he was looking for a large, undervalued consumer business that could help transform GameStop, many investors immediately pegged electronics retailer Best Buy (NYSE: BBY) as a likely option. Both companies operate in the gaming space, but Best Buy obviously sells a much broader assortment of products.
Such a deal would likely force GameStop to take on some debt for a slow-growth retailer. This wouldn't be a great option for GameStop's cash in my view.
Leaning into collectibles
Cohen has helped turn around GameStop by leaning into the hot collectibles market. This was its growth engine in 2025, with sales up 47.7%, while its other businesses declined.
Acquiring Collector's Universe, which has been rolling up the trading card grading industry over the past few years, would make strategic sense. After all, GameStop's turnaround was in large part fueled by its becoming an authorized Professional Sports Authenticator (PSA) dealer. This deal would make the most sense in my view, although it doesn't fit the criteria Cohen laid out for a larger, publicly traded business.
Acquiring a totally non-related consumer business
Cohen said he plans to buy a "high-quality, durable, scalable" business in which the management team has been asleep at the wheel. If he's getting into a completely different area and wants a company larger than GameStop, that could be Lululemon (NASDAQ: LULU).
Lululemon has been struggling and currently has no CEO, and I could totally see Cohen teaming up with outspoken Lululemon founder Chip Wilson to buy the business.
Cohen said such a deal "is something that really has never been done before within the history of the capital markets," so with a $18 billion market cap, Lululemon seems to fit all the criteria he talked about, much more so than Best Buy or Collector's Universe. Meanwhile, turning around Lululemon likely would be easier and have more potential upside. Then maybe he can turn around and sell the GameStop business to Collector's Universe.
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 $533,522!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,089,028!*
Now, it’s worth noting Stock Advisor’s total average return is 930% — a market-crushing outperformance compared to 185% 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 April 8, 2026.
Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Best Buy and Lululemon Athletica Inc. 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 Is Stockpiling Cash. Here Are 3 Big Moves the Company Could Make in 2026.

Key Points
Best Buy offers financial stability and physical goods that are AI-proof.
Sirius XM is a free cash flow beast, and GameStop can inspire younger listeners to sign up.
eBay is the largest of the three companies, but one with improving fundamentals, scalability, and a recipe for improvement under GameStop.
GameStop (NYSE: GME) is playing to win. After four fiscal years of declining revenue growth, the video game retailer knows it needs to start thinking outside the small box if it wants to thrive, or even survive.
CEO Ryan Cohen announced on CNBC in late January that GameStop was working on a major acquisition of a larger consumer company. He said it would be transformational for not just his own company, but also for capital markets in general.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Armed with more than $9 billion in cash at the end of January, investors began plotting the potential purchase. Despite also packing more than $4 billion in long-term debt, GameStop would still be able to buy a larger company through additional leverage or by including more stock than cash in a potential deal.
Continue?
Expectations of a narrative-altering adding were high heading into GameStop's fiscal fourth-quarter report two weeks ago. It would be the perfect time to spill the beans on this deal that had been in the works for months, but GameStop didn't address Cohen's earlier comments. There was noearnings callfor analysts to dig deeper into the CEO's January hype.
Sometimes, transformational deals transform into something else, but a possible pairing isn't out of the question until Cohen says so. GameStop needs a reset, and I've seen a lot of wishful thinking and outrageous forecasts for the widely followed video game stock. Let's close with three potential publicly traded companies that I think could be doable with GameStop in its current state. They all seem unlikely, but they still bear watching.
Best Buy (NYSE: BBY): With an enterprise value of $15.7 billion, Best Buy is certainly larger than GameStop. It's also been consistently profitable over the years. GameStop, on the other hand, posted three years of small profits after years of losses. It also posted an operating profit in fiscal 2025 after six years of deficits. But the only reason those operating losses turned into positive net income in the last two red-inked years was the interest income it generated from its substantial cash. That safety net will probably be gone in a deal.
Best Buy would still be a good catch. Unlike the video game industry, which shifted to digital distribution -- a knockout blow for GameStop's business -- folks still need physical appliances, smartphones, and electronics.
Sirius XM (NASDAQ: SIRI): Satellite radio is on a slow fadeout, but the last three years of top-line declines have been modest compared with GameStop's slide. Sirius XM is also highly profitable, consistently generating more than $1 billion in free cash flow annually. One thing holding Sirius XM back is its appeal to younger listeners. GameStop, with its meme stock fervor, could make the premium radio platform cool again. Its enterprise value is $17.9 billion, but think about what GameStop could do with the free cash flow to fund digital or crypto initiatives.
eBay (NASDAQ: EBAY): This is the one that makes the most sense, as I'm not sure that Best Buy or Sirius XM would result in a favorable jump for GameStop stock. The online marketplace operator is a shell of what it used to be. It has unloaded many of its non-core businesses. However, unlike any other company here, including GameStop, revenue has increased in each of the last three years. The $46.4 billion enterprise value will make this deal difficult to wrap up for many reasons, but it's a scalable business that can get going with the right meme stock nudge.
Should you buy stock in GameStop right now?
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*Stock Advisor returns as of April 6, 2026.
Rick Munarriz has positions in Sirius XM. The Motley Fool has positions in and recommends Best Buy and eBay. 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 Is Reportedly Considering an Acquisition That Could be "Transformational" for the Business. Here's What We Know.

Key Points
GameStop's posted strong earnings growth in the fourth quarter.
The gaming retail business has become far less central to GameStop's stock performance.
Investors are waiting to see what acquisition moves CEO Ryan Cohen will make.
GameStop (NYSE: GME) posted its results for the fiscal 2025 fourth quarter (ended Jan. 31) after the market closed on March 24. The company posted non-GAAP (adjusted) profit of $0.49 per share, representing an impressive step up from the adjusted per-share profit of $0.30 it posted in the prior-year period.
Meanwhile, GameStop's revenue came in at $1.1 billion for the quarter -- down 14.1% year over year. While the retailer's stock closed out the day after its earnings report up roughly 1% thanks in large part to bullish momentum for the broader market, its stock is down roughly 11% from its 2026 peak. Should investors treat the discount as a buying opportunity amid the recent sales decline?
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Should investors buy GameStop stock even though sales are sinking?
Given recent trends affecting the video game industry, GameStop's double-digit sales revenue in the fourth quarter wasn't particularly shocking. Relatively underwhelming sales performance for gaming consoles from Sony, Microsoft, and Nintendo has tamped down overall industry revenue, and last year's fourth quarter wasn't particularly heavy on big software releases.
Adding to pressures for GameStop, players have continued to shift their purchasing habits toward digital downloads rather than physical copies of games bought in stores. PCs and handheld platforms, including Valve's Steam Deck, have also been increasing in popularity, and this trend has had the effect of weakening demand for the console hardware and software that are GameStop's lifeblood.
Despite the substantial sales decline, the company's efficiency initiatives and investments allowed it to post substantial earnings growth in the period. Adjusted earnings per share were up 63% year over year. In light of the big sales decline, the company's Q4 profit actually looks very encouraging. It also underscores a major change in how investors should think of GameStop as a company and as a stock.
GameStop closed out last year's fiscal fourth quarter with $9 billion in cash and equivalents -- up from $4.8 billion at the end of the previous year. While the sales decline certainly isn't a bullish development, the story surrounding GameStop stock has become largely divorced from the performance of its video game retail business. Barring an unforeseen and dramatic turnaround, continued gains for digital distribution over physical retail suggest that the company will continue to see its gaming retail revenue decline over the long term.
With GameStop valued at approximately $10.3 billion, the real question surrounding the stock is what exactly the company will do with its $9 billion cash position. During the the height of the meme stock mania surrounding GameStop, the company smartly moved to sell new shares to improve its financial position. The stock sales allowed the company to wipe out debt and build a war chest that CEO Ryan Cohen and his team can use for acquisitions, investments, and other initiatives to transform the business.
It now makes more sense to think of GameStop as a holding company than as a video game retailer when assessing potential valuation moves for the stock. Whether to invest in GameStop stock should come down to the level of faith you have in Cohen and his ability to further his transformation strategy, not to recent sales trends for the gaming retail business.
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 $501,381!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,012,581!*
Now, it’s worth noting Stock Advisor’s total average return is 880% — a market-crushing outperformance compared to 178% 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 March 31, 2026.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Microsoft. The Motley Fool recommends Nintendo. 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.

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