GameStop posted third-quarter revenue below analysts' estimates on Tuesday, as the video game retailer struggles to gain ground following its pivot to digital downloads and streaming, sending its shar... ...

Sales at the videogame retailer drop more than 4%. ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

The videogame retailer recorded lower revenue, as hardware, accessories and software sales declined, while sales of collectibles surged. ...

Core Viewpoint - GameStop is set to report its fiscal third-quarter results, with expectations of significant growth in net sales and profitability, despite a history of declining sales over recent years [1][5]. Financial Performance - GameStop's net sales have declined for six of the last seven fiscal years, with fiscal 2021's sales still 7% below fiscal 2019 levels [2]. - The company's net sales are currently 59% below their peak in 2015, but there was a 22% year-over-year increase in the fiscal second quarter [3][6]. - Analysts project net sales of $987.4 million for the fiscal third quarter, representing a 15% increase from the previous year [5]. Profitability - Analysts expect a profit of $0.20 per share for the upcoming quarterly update, which would be more than triple the net income of $0.06 per share from a year earlier [7]. - GameStop has consistently exceeded quarterly profit expectations by 61% or more over the past year, marking the third consecutive year of profitability [7]. Business Model Evolution - The fiscal second quarter saw a 31% increase in hardware sales, largely due to the launch of Nintendo's Switch 2 console, while collectibles surged by 63% [8]. - Software sales, traditionally a high-margin segment, fell by 27% and now account for less than 16% of revenue, impacted by the rise of digital delivery and game streaming services [9][10]. Market Position - GameStop's gross margin has contracted year-over-year, but the bottom line continues to improve, with a current P/E ratio of 23 for projected earnings [10]. - The long-term outlook remains uncertain, but recent positive trends in fundamentals are noteworthy [10].

GameStop Overview - GameStop has remained a focal point in the market since its significant rise during the meme stock phenomenon in 2021, with occasional surges in stock price driven by positive news or mentions from influential investors [1][2] - The company has improved its operations and reported strong quarterly results, showcasing notable growth in revenue and earnings, particularly in its hardware division and collectibles business [3] Amazon Overview - Amazon is highlighted as a more stable investment option compared to GameStop, particularly for long-term investors, due to its robust e-commerce and cloud services [4] - Amazon's e-commerce platform is characterized by its extensive logistics network, providing a competitive advantage in the market [5] - Amazon Web Services (AWS) is a leading cloud provider, allowing businesses to efficiently manage their operations through cloud storage, with significant growth potential as many companies have yet to transition to the cloud [6] - The integration of artificial intelligence (AI) is expected to enhance cloud operations and provide businesses with the capability to run AI applications, prompting Amazon to invest heavily in AI infrastructure [8] Investment Outlook - There is ongoing debate regarding the valuation of AI investments and whether companies like Amazon are overextending in AI infrastructure spending, with clarity on this issue expected to take years [9] - Despite potential challenges, Amazon is anticipated to maintain its market dominance and benefit from AI advancements in the long term [10]

Core Viewpoint - GameStop Corporation is launching "Trade Anything Day" on December 6, which aims to attract customers into stores ahead of its quarterly financial results on December 9, potentially boosting stock interest [1][4]. Group 1: Event Details - "Trade Anything Day" allows customers to trade in a wide variety of items, not just video games and tech products, redefining the trading experience at GameStop [3]. - The event has gained significant attention on social media platforms, with users able to trade in items fitting within a 20x20x20 inch box for a $5 trade credit towards future purchases [4]. Group 2: Business Strategy - GameStop is diversifying its offerings by branching into collectibles and trading cards, which may be highlighted during the event [2]. - The event could attract new customers and those who have not visited stores recently, potentially revitalizing interest in the company's struggling Hardware and Accessories and Software segments [6]. Group 3: Financial Expectations - Analysts project GameStop will report third-quarter revenue of $987.3 million, an increase from $860.3 million in the same quarter last year [7]. - Earnings per share are expected to rise to 20 cents, up from 6 cents in the previous year, with the company having beaten earnings estimates in three consecutive quarters [8]. Group 4: Stock Performance - GameStop stock is currently trading at $23.11, reflecting a 1.3% increase, although it is down 24.6% year-to-date in 2025 [9].

Core Insights - GameStop's stock has declined nearly 38% from its 52-week high of about $35 to approximately $21–22, with net sales dropping around 17% year-over-year [2][4] - The company's hardware revenue has collapsed by over 30%, and software sales have fallen by more than 25% [2][4] - A $1.75 billion convertible-debt initiative and a significant investment in Bitcoin have led to substantial market capitalization losses [2][5] Business Model Challenges - GameStop's business model is heavily reliant on physical gaming, which is declining as fewer gamers purchase discs and visit stores [4] - The company has reduced operations in several international markets due to ongoing demand erosion [4] - Despite cost-cutting measures, these have not compensated for declining revenues, raising concerns about the company's ability to stabilize [4] Strategic Decisions and Market Reaction - The issuance of convertible debt and investment in Bitcoin have alarmed investors, raising doubts about management's long-term strategy [5] - The stock price dropped sharply following these announcements, indicating that investors view the strategy as a risky gamble rather than innovation [5] Meme-Stock Phenomenon Decline - The excitement surrounding GameStop as a meme stock has diminished, leading to a valuation more reflective of its actual business performance [6] - Without the previous hype, the stock faces pressure from declining financial trends and strategic uncertainty [6] Future Outlook - GameStop still has cash reserves and a dedicated investor base, but it needs to present a credible shift in strategy [7] - Investors are looking for signs of improving sales trends and a sustainable economic strategy rather than financial engineering [7] - The stock remains speculative, with potential for sudden recoveries but also ongoing turmoil as the company seeks its next chapter [7]

Core Insights - The rise and fall of meme stocks like GameStop and Beyond Meat highlight the risks of emotional investing, emphasizing the need for investors to control their emotions [1][14] - GameStop and AMC, despite their weak business fundamentals, experienced significant stock price rallies driven by investor excitement [8][10] - Beyond Meat's stock has also declined after a brief rally, reflecting poor business performance and declining sales volume [11][13] Company Analysis - GameStop's current market cap is $10 billion, with a stock price of $22.53, and it has a gross margin of 30.06% [2] - Beyond Meat's current stock price is $0.98, with a market cap of $0 billion and a gross margin of 5.98% [6] - Both companies have seen their stock prices significantly decline from their peaks during the meme stock rally, indicating a disconnect between stock prices and underlying business fundamentals [10][11] Industry Trends - The concept of "Mr. Market" illustrates the volatility of investor sentiment, where stock prices can be influenced more by emotions than by actual business value [4][13] - The trend of meme stocks serves as a cautionary tale for investors, reinforcing the importance of fundamental analysis over emotional decision-making [7][14] - The performance of meme stocks like GameStop, AMC, and Beyond Meat suggests that popularity can drive short-term price increases, but long-term value is determined by business fundamentals [13][14]

Core Insights - GameStop Corp (NYSE:GME) stock is experiencing a notable increase of 3.6%, trading at $22.41, following a social media post by investor Michael Burry that included an old email exchange involving GameStop's CEO Ryan Cohen [1] - The upcoming third-quarter earnings report, scheduled for December 8, is generating significant retail trader interest, with a historical positive post-earnings trend for the stock [2] - GameStop's stock has seen a decline of nearly 30% in 2025, with a recent low of $19.93, while short interest has increased, indicating ongoing bearish sentiment [3] Trading Activity - Options trading activity is notably high, with 105,000 call options traded in the first hour, which is three times the average intraday volume, indicating a shift in market sentiment [4] - The most popular options contract is the weekly 11/18 22.50-strike call, suggesting traders are opening new positions in anticipation of potential upward movement [4] - The put/call open interest ratio for GameStop is at the 98th percentile of its annual range, reflecting unusually high bearish sentiment in the options market [4]