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

Core Insights - GameStop has seen significant insider buying from CEO Ryan Cohen, who purchased 500,000 shares at an average cost of approximately $21.12, totaling over $10.5 million, indicating bullish sentiment towards the company [3] - The company is attempting to pivot its strategy as its traditional brick-and-mortar video game business declines, while also exploring new avenues such as collectibles and cryptocurrency [2][4] Financial Performance - GameStop's hardware business has experienced a 5% decline, while its software revenue has plummeted by 27% year-over-year; however, the collectibles segment has seen a remarkable 55% revenue growth [4] - The company has improved its operating cash flow and reported diluted earnings per share of $0.67, a significant improvement from the previous year [5] - GameStop's current market capitalization stands at $10 billion, with a trading multiple of approximately 2.3 times revenue and close to 22 times forward earnings [7][8] Market Position and Analyst Outlook - Only one Wall Street analyst covers GameStop, projecting nearly $1 of EPS in 2026 and total revenue of $4.16 billion, indicating potential year-over-year growth [8] - Despite improvements, the earnings multiple appears high for a company still stabilizing its revenue, particularly in its largest business segment [9]