Track market-moving stories before they get noisy

A collectibles category few investors were watching just drove GameStop's most profitable second quarter ever, and a director moved seven figures into the stock the same morning results dropped.

GameStop (NYSE:GME | GME Price Prediction) stock is up 4% to $19.59 in Wednesday morning trading, powered by a fiscal second-quarter earnings beat, a surge in collectibles revenue, and a same-day insider purchase from one of its directors. The move caps a choppy stretch for the retailer’s shares and reframes the business mix that investors have been valuing.

The session gain still leaves GameStop stock down 2% year to date, so today’s rally hasn’t yet pulled the shares positive for 2026. That’s the cautionary note in the story: a single strong session doesn’t undo a flat-to-negative run, and it doesn’t yet mark a change in trend.

For context, the VanEck Video Gaming and eSports ETF (NASDAQ:ESPO) is trading at $96.77, down 1% on the same session. Meanwhile, the SPDR S&P 500 ETF Trust (NYSEARCA:SPY) sits at $762.02, down 0.5%, so this reads as a single-name reaction rather than a broad bid for gaming equities.

Collectibles Surge Reshapes the Mix GameStop reported fiscal Q2 2026 adjusted earnings per share of $0.27, above the analyst consensus estimate of $0.19. GameStop’s revenue came in above the consensus estimate but fell from the prior-year quarter, which GameStop attributed to the prior year’s Nintendo console launch, planned store closures, and the divestiture of its France operations.

GameStop’s collectibles net sales rose 57% year over year to $356.3 million, a mix shift that has the trading-card, plush, and pop-culture category carrying growth while the legacy retail line shrinks. The company’s operating income was the highest for a second quarter in its history, and management raised its full-year adjusted EBITDA outlook.

The mix change matters because collectibles carry higher margins than physical software, which has been the retailer’s shrinking core. That shift helps explain why Gamestop’s profit expanded even as headline revenue slipped. It’s the kind of quality-of-earnings improvement that tends to draw a second look from investors who had written the story off.

Notably, there was no formal earnings call accompanying Gamestop’s results, so the release itself is doing the talking. That leaves the mix shift as the reason today’s reaction diverges from prior quarters when reports were greeted with skepticism.

Insider Buy and Sector Divergence GameStop Director Lawrence Cheng reportedly purchased roughly $1.03 million of GME shares through Cheng Capital LLC on the same day results were published, increasing the entity’s declared stake. The timing reads as corroborating rather than causal, because a director bought after seeing the quarter’s numbers rather than before.

GameStop also holds a substantial equity position in eBay (NASDAQ:EBAY), which adds a non-retail asset line to the balance-sheet story that isn’t reflected in day-to-day comp trends at the stores. That stake has periodically fueled speculation about strategic options, though nothing on that front was disclosed today.

Gaming comparables Take-Two Interactive (NASDAQ:TTWO) and Roblox (NYSE:RBLX) aren’t providing sector lift today, reinforcing that this is a GameStop-specific reaction. With the sector fund down and the broad tape lower, the divergence itself is the takeaway.

What to Watch Next With no conference call to shape follow-through, the next signal for GameStop stock could come from sell-side notes and from how the collectibles line trends through the back half of the fiscal year. Investors can watch for whether today’s gains hold into the close and whether the raised EBITDA outlook prompts estimate revisions across coverage.

Position sizing on one’s GME stock exposure should stay measured given the stock’s flat-to-negative year-to-date run and the sector fund’s decline on the same session. The setup rewards patience over chasing, particularly with the mix shift still needing another quarter of proof for GameStop.

Contact [email protected] for any questions or corrections.

GameStop's latest earnings flipped the script on what kind of company this actually is, and the stock price has not caught up yet. Here is why one overlooked revenue line is rewriting the entire valuation.

GameStop (NYSE:GME | GME Price Prediction) just delivered a Q2 FY2027 report that materially reshaped the bull case. Collectibles are now the dominant revenue line, gross margin nearly doubled versus the prior year, and management raised the fiscal 2026 Adjusted EBITDA guide.

My 24/7 Wall St. price target for GME is $40.26 over the next 12 months, versus a current price of $18.89. That implies 113.15% upside, with our proprietary model registering a buy at high confidence.

24/7 Wall St. Price Target Summary Metric Value Current Price $18.89 24/7 Wall St. Price Target $40.26 Upside 113.15% Recommendation BUY Confidence Level 90% A Quiet Stock Hiding a Loud Earnings Report GME shares have been muted despite the operating turn. The stock is down 5.93% year to date and 18.65% over the past year, essentially flat over the past week.

Q2 FY2027 revenue of $790.20 million beat estimates by 4.41%, while adjusted EPS of $0.27 met consensus. Adjusted EBITDA came in at $174 million against $75.70 million a year earlier, and a full-year Adjusted EBITDA guide raised to in excess of $650 million. Our sister coverage at 24/7 Wall St. flagged that GameStop’s next big move could matter more than its earnings, a reference to the still-unresolved eBay stake and capital allocation questions.

Why Bulls See a Breakout Ahead Collectibles revenue reached $356.30 million, growing 57% and accounting for 45.1% of net sales. That mix shift drove gross margin to 43.7% from 29.1%.

Bulls point to $4.85 billion in cash, a $2 billion buyback authorization, and an eBay stake worth roughly $4.9 billion. Our bull-case one-year target sits at $43.09. Options positioning also skews long, with a full-chain put/call ratio of 0.23.

What Could Go Wrong Video Games revenue fell to $263.20 million from $494.60 million, and total revenue declined 18.72% year over year. GAAP net income was flattered by a $166.30 million derivative gain and offset by a $75 million loss on digital assets.

Bulls counter that the video-game weakness reflects planned store closures, the France divestiture, and the absence of a prior-year Switch 2 launch, all lapping items. Our bear-case one-year target is $30.56, still comfortably above the current price.

How GameStop Compares to Best Buy and Funko Best Buy (NYSE:BBY) is the diversified consumer-electronics retail contrast. Best Buy just raised its FY27 adjusted EPS guide to $6.70 to $6.90 on 4.1% comparable sales growth, valuing the shares near 12 times forward earnings.

GameStop trades at an implied forward multiple of roughly 14 times on our forward EPS estimate, which looks reasonable given the collectibles-driven margin expansion Best Buy cannot replicate at scale.

Funko (NASDAQ:FNKO) is the closest pure-play collectibles comp. Funko’s Core Collectibles segment grew 9% in Q2 2026, versus GameStop’s 57%, with full-year Adjusted EBITDA guided to $100M to $110M.

GameStop’s raised guide of over $650 million dwarfs that, yet Funko still trades at a premium multiple. That gap is exactly why our 24/7 Wall St. price target of $40.26 looks reasonable.

GameStop Price Prediction 2026-2030 The 24/7 Wall St. price target is $40.26, the recommendation is buy, and confidence is 90%. The pivotal variable is collectibles margin durability. The setup strengthens if collectibles growth stays above 30% next quarter, and weakens if Video Games revenue keeps falling faster than store-count reductions can offset.

Year 24/7 Wall St. Price Target 2026 $40.26 2027 $55.00 2028 $75.00 2029 $110.00 2030 $150.37 These projections assume GameStop continues scaling its collectibles mix and preserving the investment portfolio. Significant upside or downside could result from the proposed eBay transaction or an adverse move in digital-asset holdings.

Contact [email protected] for any questions or corrections.

powered by

GameStop (GME)

Buy GME. The earnings math is being propped up by the eBay stake, and the convertible note overhang just got capped (fixed share count + cash). With consensus already aligned to the preliminary ranges, the likely catalyst is management commentary that confirms the eBay acquisition path without new dilution surprises. Upside is a rerating from “financial engineering” to “de-risked capital structure,” especially with implied post-earnings volatility already high.

Key Risk: Management signals more dilution is coming (new equity issuance or a worse-than-expected acquisition funding plan).

eBay (EBAY)

Buy EBAY. GameStop’s proposed acquisition at $125/share is a direct valuation floor for EBAY, and the market is focused on whether the deal closes and how it’s funded. If GME’s earnings confirm deal momentum and financing certainty, EBAY should catch a deal-support bid even before any final regulatory/closing headlines.

Key Risk: The acquisition is delayed, renegotiated lower, or blocked, removing the $125/share support.

GameStop reports second-quarter fiscal 2026 results after the market closes on Tuesday.

In a preliminary results press release on August 31, the company said it expects net sales of $780 million to $800 million for the quarter ended August 1, down sharply from $972.2 million a year earlier.

GameStop attributed the decline to a tough comparison against last year’s Nintendo Switch 2 launch, planned store closures, and the divestiture of its France operations.

The same release flagged operating income of $150 million to $170 million and net income of $290 million to $310 million, both well above the prior year.

Despite falling sales, GameStop expects operating income of $150 million to $170 million, more than double the $66.4 million posted a year ago, and net income of $290 million to $310 million versus $168.6 million last year.

The jump is largely financial engineering rather than retail strength.

GameStop converted its eBay derivative position into a direct equity stake during the quarter, and now holds roughly 43.4 million eBay shares worth close to $4.95 billion.

That stake generated about $238 million in net gains, partly offset by a roughly $75 million loss on digital assets and related receivables.

Wall Street’s consensus EPS of $0.27 already reflects most of this.

A day before the preliminary results, GameStop also amended its $1.4 billion convertible note exchange, first announced in early August.

Instead of an open-ended, share-price-linked stock swap tied to a 35-day trading window, the company fixed the terms: noteholders received about 55.5 million shares plus $358.4 million in cash, capping further dilution.

The exchange closed around September 3, leaving roughly $2.8 billion of convertible notes outstanding.

That certainty on share count matters more than usual right now, given GameStop’s proposed acquisition of eBay at $125 a share, payable in cash and stock, which will likely need further equity issuance down the line.

Ahead of the print, analysts have penciled in adjusted earnings per share of $0.27 on revenue of roughly $756.85 million, according to estimates tracked by TipRanks and other Street-facing platforms.

Both figures sit inside the ranges GameStop itself flagged in its preliminary release, which is why analysts widely expect Tuesday’s print to confirm rather than surprise.

The bigger swing factor, in their view, is management’s forward commentary rather than the historical numbers.

GME shares closed at $19.16 on Friday, just above their 52-week low of $17.79, and have traded a roughly flat-to-down path over the past week.

The options market is pricing a swing of around 9% in either direction post-earnings, well above the stock’s 6.6% average move over the past four quarters.

Ryan Cohen is sitting on a war chest worth billions, and what he chooses to do with it before Tuesday's close could matter far more to GameStop investors than any revenue line in the quarterly report.

GameStop (NYSE:GME | GME Price Prediction) reports fiscal second quarter results Tuesday after the close. With shares down 4.58% year to date and a cash pile north of $7 billion, the reaction will hinge less on the P&L than on what Ryan Cohen does with the balance sheet.

Cash Deployment Now Matters More Than Comps In Q1 FY2026 revenue rose to $835.3 million, up 14% year over year, with gross margin expanding to 40.7% from 34.5% as collectibles became the largest category at $348.9 million, or 41.8% of sales. SG&A came down to $201.6 million, and interest income from the securities portfolio added another $83.7 million.

The board authorized a fresh $2.0 billion share repurchase program running through June 2, 2029, and GAAP results included a $268.4 million unrealized gain on derivative positions tied to a proposed acquisition of eBay (NASDAQ:EBAY). Management doesn’t typically hold a call or provide guidance, so investors read the release, the 10-Q, and the stock reaction.

Consensus Estimates Sell-side coverage on GME is thin. Alpha Vantage shows just one EPS analyst and one revenue analyst for the quarter, which is why the estimate ranges collapse to a single number.

Metric Q2 FY2026 Est. Prior Year FY2027 Est. EPS $0.27 $0.25 $1.30 Revenue $756.85M $972.2M $3.90B The quarterly EPS estimate has been revised up from $0.23 sixty days ago.

Core Retail, Cash Pile, and the eBay Overhang There are four things worth watching in this report. First, the collectibles trajectory. Trading cards and authentication have been the reason gross margin scaled from the low 30s into the 40s, and any deceleration matters more than a hardware miss.

Second, the revenue figure itself. Comparable Q2 FY2025 revenue was inflated by a $592.1 million hardware and accessories quarter, and international divestitures in Canada, France, and New Zealand continue to compress the top line. You want to see whether the decline is decelerating on a like-for-like basis.

Third, cash deployment. With roughly $8 to $9 billion in cash and securities, any progress on the $2.0 billion buyback, an update on the proposed eBay transaction, and the mark on the Bitcoin position (recently valued in the $519 to $529 million range) will move the stock more than operating metrics.

Fourth, the warrants. The 59 million warrants at a $32.00 exercise price expire October 30, 2026, and with the stock at $19.16, they are well out of the money. Any commentary on the $3.75 billion in convertible notes is fair game.

A Retail-Positioning Stock With a Balance Sheet Problem to Solve GME trades on retail sentiment as much as fundamentals, and moves have historically been large in both directions. Even with four straight beats, the average day-of reaction has been negative at -1%. The question this quarter is whether Cohen shows how the war chest gets deployed, or leaves the market to keep guessing.

Contact [email protected] for any questions or corrections.

The videogame retailer's net income came within the forecast range it had given last month.

Board of Directors member Lawrence Cheng reported a purchase of 55,000 shares of GameStop Corp. (GME -1.41%) in an SEC Form 4 filing dated September 8, 2026.

Transaction summaryMetricValueTransaction value$1.0 millionShares purchased (indirectly held)55,000Post-transaction shares (indirectly held)143,000Post-transaction value$2.70 millionTransaction value based on SEC Form 4 weighted average purchase price ($18.80); post-transaction value based on September 08, 2026 market close ($18.89).

Key questionsWhat does the 62% trade size relative to prior holdings suggest?
The transaction substantially expands the director's exposure through Cheng Capital LLC, moving the total position from 88,000 shares to 143,000 shares. This represents a concentrated increase in equity risk by the reporting owner.How does the transaction price compare to recent market levels?
Lawrence Cheng executed the purchase at $18.80 per share, slightly below the $18.89 market close on the same day. As of the September 8, 2026 market close, the stock was priced at $19.37.What is the nature of the insider's equity position?
The entirety of the reported position is held indirectly through Cheng Capital LLC. After the transaction, the insider's ownership percentage of the specialty retailer is 0.0319%.Does the filing include any derivative activity?
The filing was restricted to the acquisition of Class A Common Stock. There was no reporting of stock options, restricted stock units, or other derivative instruments in this specific transaction.Company OverviewMetricValueShare Price (as of market close 2026-09-08)$19.37Market Capitalization$8.7 billionRevenue (TTM)$3.6 billionNet Income (TTM)$893.3 millionCompany SnapshotGameStop Corp. operates as a specialty retailer offering new and pre-owned video game consoles, gaming software, accessories including controllers and headsets, virtual reality equipment, as well as collectibles and other entertainment products across physical stores and online platforms in the United States, Canada, Australia, and Europe.The company generates revenue through the sale of collectibles, gaming hardware, software, and accessories across its omnichannel retail network, leveraging both e-commerce capabilities and brick-and-mortar locations to serve collectors, gaming enthusiasts and casual consumers.GameStop's primary customer base consists of hobbyists and collectors, video game enthusiasts, console gamers, and entertainment consumers seeking both new releases and pre-owned products, with a focus on the mass-market collectibles and gaming demographic across developed markets.GameStop Corp. operates as a prominent specialty retailer in the consumer cyclical sector with a market cap of $8.7 billion. The company maintains a diversified product portfolio spanning collectibles, gaming hardware, software, and accessories, positioning itself as a destination retailer for specialty and entertainment products across multiple geographic markets.

With trailing 12-month revenue of $3.6 billion, GameStop demonstrates substantial scale within the specialty retail segment, though the company has experienced a one-year share price decline of 18.65% reflecting broader market dynamics in the retail sector.

What this transaction means for investorsThe Sept. 8 purchase of GameStop shares by Board of Directors member Lawrence Cheng signals his strong confidence in the stock, considering he increased his stake by a whopping 62%. He bought on the same day the company announced earnings results for its fiscal second quarter ended Aug. 1.

GameStop stock dropped on Sept. 8, and Cheng scooped up 55,000 shares for $18.80 per share. That's near the stock's 52-week low of $17.79 reached in August.

GameStop shares are down because the company reported fiscal Q2 sales of $790.2 million, a steep decline from the prior year's $972.2 million. Revenue fell due to store closures and the divestiture of its operations in France.

Perhaps Cheng's bullish outlook is because the company's shift toward a collectibles business is succeeding. GameStop's Q2 collectibles revenue reached $356.3 million compared to $227.6 million in the previous year.

The company also raised its full-year outlook. Moreover, news reports suggest GameStop's attempt to acquire eBay has transitioned towards a potential partnership instead, with the e-commerce giant possibly using GameStop's physical stores as a new channel to sell products.

Robert Izquierdo has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends eBay. The Motley Fool has a disclosure policy.

GameStop's eBay investment delivered $238 million in gains, masking a steep decline in core retail sales ahead of Sept. 8 earnings Summary

GameStop expects Q2 net income of $290 million to $310 million as its $4.95 billion eBay stake offsets an 18% to 20% sales decline

GameStop GME enters its Sept. 8 earnings report with a profit surge driven more by its investment portfolio than its video game stores.

Preliminary results show fiscal second-quarter net income of $290 million to $310 million, up from $168.6 million a year earlier. However, roughly $238 million in net gains came from GameStop's equity stake and derivative positions in eBay (EBAY). A $75 million loss on digital assets partly offset those returns.

Investment gains drive GameStop profitAs of Aug. 1, GameStop owned 43.4 million eBay shares valued at $4.95 billion. The position has made eBay's stock performance a major driver of GameStop's earnings.

GameStop sells games, consoles, collectibles and merchandise through stores and online. The company became a meme stock in 2021, but its retail business has continued contracting as game purchases move online and management closes weaker locations.

That pressure remained visible. Quarterly sales are expected to fall to between $780 million and $800 million from $972.2 million last year, a decline of roughly 18% to 20%. Store closures, the sale of GameStop's French operations and a difficult comparison with last year's Nintendo Switch 2 launch weighed on revenue.

Operating income is expected to reach $150 million to $170 million, up from $66.4 million. Investors must separate sustainable operating improvement from market gains that could reverse if eBay shares weaken.

What GameStop investors should watchGameStop ended the first quarter with $8.4 billion in cash and marketable holdings and authorized a $2 billion buyback program through June 2029. It also used $358.4 million in cash and stock to exchange convertible notes and limit future dilution.

For investors, the Sept. 8 report is about earnings quality. The key questions are whether retail margins are improving, how management will deploy its investment portfolio and whether GameStop is becoming a stronger retailer or primarily an investment vehicle attached to a shrinking business.

Disclosures I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.

Click for the complete disclosure

1.87K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Carl Court/Getty Images News

Listen below or on the go on Apple Podcasts and Spotify

BoE’s Bailey warns AI could threaten financial stability. (0:15) California wildfire legislation tanks PG&E and Edison. (1:40) Chery eyes an IPO for humanoid robot unit. (2:12)

This is an abridged transcript of the podcast:

Our top story so far, it was only a matter of time before central banks got AI jitters.

In a letter to G20 finance ministers, Bank of England Governor Andrew Bailey said frontier AI models pose a growing threat to financial stability, while increased use of leverage in equity markets and stretched AI valuations heighten the risk of a market correction.

“New technologies and changing market structures present significant opportunities, but they also require continued vigilance and international cooperation,” Bailey, who also heads the G20’s Financial Stability Board, wrote.

“The risks associated with frontier AI will not respect national borders,” he said. “The global financial system is highly interconnected, and cyber disruption can spread across jurisdictions through common technology providers, shared infrastructure, and cross-border financial activity.”

As a result, differences in legal frameworks and cyber capabilities across countries “may themselves become a source of vulnerability,” he added.

Bailey called on financial institutions, financial market infrastructures and technology providers to strengthen vulnerability management and prepare for scenarios involving simultaneous disruption on multiple fronts.

Among active stocks, GameStop (GME) released preliminary Q2 results, with net sales projected to decline to $780M–$800M. That’s down from $972M in the year-ago period, but above consensus of $756.85M.

The company highlighted tough comparisons against the Nintendo Switch 2 launch, store closures and the divestiture of its France operations.

PG&E (PCG) and Edison International (EIX) are plunging nearly 20% after California lawmakers over the weekend introduced wildfire legislation that blocked Gov. Gavin Newsom's proposal to prevent insurance companies from suing utilities for wildfire-related claims.

And CrowdStrike (CRWD) is among the S&P’s top gainers after it announced its Falcon platform is now available on Google Cloud infrastructure, giving customers access to its AI-native security platform.

The company also announced a new collaboration with Snowflake (SNOW) to bring AI-native security and enterprise data together at scale.

In other news of note, Chery Automobile (CRAUY) is preparing for a potential standalone IPO of its AiMOGA Robotics subsidiary that could give investors another public market route to invest in China's fast-growing humanoid robot sector.

The company is discussing several possible listing venues, but it has not set a timetable or taken substantive listing steps.

AiMOGA, which was incubated by Chery in January 2025, has delivered more than 3K robots globally, including 2K abroad, and operates in over 60 countries and regions.

Its early portfolio spans service and companion robots, while its humanoid products have been deployed in practical public sector roles, including in roles as police robots.

And in the Wall Street Research Corner, retail traders are heading into September running on fumes when it comes to buying dips.

According to Citadel Securities' Scott Rubner, retail net buying on S&P 500 (SPY) down days in September has averaged roughly half the all-month pace since 2019, the weakest showing of any month on the calendar.

The slowdown isn't confined to dip-buying. September has historically posted both the lowest share of annual retail net notional and the lowest directional skew of any month on Citadel's platform, reinforcing the sense that retail activity broadly downshifts as summer ends.

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.

GameStop Corp (NYSE:GME) stock is bucking the broad market trend this morning, up 5% to trade at $18.75.

GRAPEVINE, Texas--(BUSINESS WIRE)--GameStop Corp. (NYSE: GME) (“GameStop” or the “Company”) today announced certain preliminary unaudited financial information for the second quarter ended August 1, 2026. The Company is providing this preliminary information in connection with the amendments to its convertible notes exchange announced separately today. On a preliminary basis for the 13 weeks ended August 1, 2026 compared to the 13 weeks ended August 2, 2025: Net sales are expected to be in the.

The videogame retailer said it anticipates net income of $290 million to $310 million for its 13 weeks ended Aug. 1, up from net income of $168.6 million in last year's second quarter.

From July 16- GameStop CEO Ryan Cohen said “we're coming for eBay one way or another,” but declined to say if he planned to raise his $56 billion offer for online auctioneer eBay Inc. He spoke with Ed Ludlow on “Bloomberg Tech" on July 16. -------- More on Bloomberg Television and Markets Like this video?

GameStop (GME) is upgraded to a soft ‘buy' as revenue, profitability, and cash flows improve significantly amid a stronger collectibles business. GME posted 14% revenue growth YoY, with net income rising from $44.8M to $389.6M and adjusted net profits more than doubling. Management expects EBITDA to exceed $600M this year, and a large net cash position ($4.2B) supports balance sheet strength.

GameStop Corp. may pull its $56 billion bid for EBay according to people familiar with the matter. GameStop CEO Ryan Cohen may instead propose a partnership.

GameStop is considering dropping its bid for eBay and pursuing a partnership instead, according to sources. Bloomberg's Bailey Lipschultz and Spencer Soper explain how GameStop CEO Ryan Cohen could seek to leverage its 1,600 US stores to give eBay a physical retail presence - and why a partnership may prove more realistic than an outright deal.

GameStop could be pulling back from its attempt to merge with eBay.

Getty Images

Listen below or on the go on Apple Podcasts and Spotify

GME CEO reportedly considers alternatives to full takeover. (0:15) Apple faces sharply higher component costs for upcoming iPhone. (1:10) Archer Aviation soars after buying three Boeing businesses. (1:39)

This is an abridged transcript of the podcast:

Our top story so far, GameStop (GME) CEO Ryan Cohen is reportedly considering withdrawing his offer to acquire eBay (EBAY) and instead could propose a different deal, such as a partnership or joint venture.

With GameStop shares down 28% since May, the company is looking at alternative ways to capitalize on its retail footprint alongside eBay's catalogue of collectibles, Bloomberg reported. The deal could also include representation on eBay's board.

GameStop is currently eBay's second-largest shareholder, with a 9.75% stake.

In May, GameStop extended a $56B offer for the outstanding eBay stock, split 50% cash and 50% stock.

To finance the deal, Cohen said he would tap GameStop's $9.4B cash and liquid investment war chest, along with a $10B line of credit from TD Securities.

Despite Cohen's insistence the deal would be "transformational" for GameStop, Michael Burry sold his entire GME position soon after, saying: "Wall Street does indeed mistake debt for creativity and does so constantly."

Among active stocks, the cost of Apple's (AAPL) 256GB iPhone 18 Pro will be about 38% higher in Q3 than the comparable model launched in 2025, due to surging component costs, according to TrendForce Research.

Meta (META) CEO Mark Zuckerberg is unveiling a new open-source model called Muse Glimmer, a version of the company's most powerful model, Muse Spark.

"Soon we'll also release the weights for Muse Spark 1.2, our latest foundation model," Zuckerberg said. "Meta is a strong supporter of open source."

And Archer Aviation (ACHR) is soaring after saying it will acquire Boeing's (BA) Wisk Aero, SkyGrid, and Insitu subsidiaries.

Wisk is the only company to have designed, built, and flown six generations of eVTOL aircraft. SkyGrid has developed a ground-based, aircraft-agnostic air traffic management solution, while Insitu specializes in designing, developing, and manufacturing uncrewed aircraft systems.

In other news of note, a consortium that includes Amazon founder Jeff Bezos is reportedly closing in on a deal to buy a stake of about 30% in Liverpool FC.

An announcement on a deal with the consortium, led by Amit Bhatia and including Bezos and Facebook (META) co-founder Eduardo Saverin, could come as soon as this week, Sky News reported.

The investment would reportedly value Liverpool at $6B, making it one of the richest deals in sports history.

My commitment to unbiased news prevents me from commenting as a Man United supporter.

And in the Wall Street Research Corner, the S&P 500's (SPY) dividend yield has fallen to a record low of 1.04%, as stock prices have risen faster than dividend payments.

The yield has reached much higher levels during periods of market weakness, peaking at about 3.87% in the early 1990s before trending lower over the following decades.

Check out the chart from strategist Charlie Bilello in our story on Seeking Alpha.

Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.

GameStop CEO ​Ryan Cohen ‌is considering withdrawing ​the ​company's $56 billion bid ⁠for ​eBay, Bloomberg ​News reported on Monday, ​citing ​people familiar with ‌the ⁠matter.

Posted by Defense World Staff on Aug 4th, 2026

California State Teachers Retirement System increased its position in GameStop Corp. (NYSE:GME – Free Report) by 22.5% during the first quarter, according to its most recent Form 13F filing with the SEC. The fund owned 493,286 shares of the company’s stock after buying an additional 90,474 shares during the period. California State Teachers Retirement System owned 0.11% of GameStop worth $11,365,000 at the end of the most recent reporting period.

Other hedge funds and other institutional investors have also recently added to or reduced their stakes in the company. Quantinno Capital Management LP grew its position in GameStop by 377.8% in the first quarter. Quantinno Capital Management LP now owns 138,846 shares of the company’s stock worth $3,199,000 after acquiring an additional 109,788 shares in the last quarter. Delta Global Management LP bought a new position in shares of GameStop during the 1st quarter valued at $3,448,000. OMERS ADMINISTRATION Corp raised its holdings in shares of GameStop by 23.0% during the 1st quarter. OMERS ADMINISTRATION Corp now owns 81,283 shares of the company’s stock valued at $1,873,000 after purchasing an additional 15,200 shares in the last quarter. Entropy Technologies LP acquired a new stake in shares of GameStop in the 1st quarter valued at $905,000. Finally, Renaissance Technologies LLC lifted its stake in shares of GameStop by 376.2% in the 1st quarter. Renaissance Technologies LLC now owns 2,650,303 shares of the company’s stock valued at $61,063,000 after purchasing an additional 2,093,755 shares during the last quarter. Institutional investors own 29.21% of the company’s stock.

Analyst Ratings Changes GME has been the topic of several analyst reports. Weiss Ratings reissued a “hold (c)” rating on shares of GameStop in a research report on Wednesday, July 29th. Wall Street Zen raised GameStop from a “hold” rating to a “buy” rating in a research report on Sunday, June 14th. One investment analyst has rated the stock with a Hold rating, Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold”.

Check Out Our Latest Report on GameStop

GameStop Trading Down 12.3% Shares of GME stock opened at $19.05 on Tuesday. GameStop Corp. has a 1 year low of $18.55 and a 1 year high of $28.10. The firm’s fifty day simple moving average is $21.78 and its 200 day simple moving average is $22.92. The firm has a market capitalization of $8.55 billion, a P/E ratio of 14.43 and a beta of 1.79. The company has a current ratio of 12.40, a quick ratio of 11.91 and a debt-to-equity ratio of 0.71.

GameStop (NYSE:GME – Get Free Report) last issued its quarterly earnings results on Tuesday, June 2nd. The company reported $0.30 earnings per share for the quarter, beating analysts’ consensus estimates of $0.16 by $0.14. The firm had revenue of $835.30 million during the quarter, compared to the consensus estimate of $766.63 million. GameStop had a net margin of 20.45% and a return on equity of 13.75%. The business’s revenue was up 14.0% on a year-over-year basis. During the same period in the prior year, the firm earned $0.17 EPS.

Insider Activity In related news, insider Daniel William Moore sold 7,085 shares of the stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $22.38, for a total value of $158,562.30. Following the completion of the sale, the insider owned 115,125 shares in the company, valued at approximately $2,576,497.50. This trade represents a 5.80% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, General Counsel Mark Haymond Robinson sold 3,957 shares of GameStop stock in a transaction dated Monday, July 6th. The stock was sold at an average price of $22.62, for a total value of $89,507.34. Following the sale, the general counsel directly owned 104,190 shares in the company, valued at approximately $2,356,777.80. This trade represents a 3.66% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last quarter, insiders sold 18,125 shares of company stock valued at $406,587. 9.50% of the stock is owned by corporate insiders.

Key Headlines Impacting GameStop Here are the key news stories impacting GameStop this week:

Positive Sentiment: The exchange would substantially reduce GameStop’s long-term debt without requiring a cash payment, potentially lowering future financial obligations and strengthening the balance sheet. The company is exchanging approximately $400 million of notes due in 2030 and $1 billion due in 2032. GameStop Announces Private Exchange of $1.4 Billion of Convertible Senior Notes for Equity Neutral Sentiment: Options activity was unusually high, with traders purchasing 205,389 call options, about 18% above typical call volume. This indicates increased speculative interest but does not guarantee sustained buying support. Negative Sentiment: Because noteholders will receive newly issued shares, existing shareholders face dilution. Investors are interpreting the debt-for-equity swap as shifting part of the restructuring cost to current stockholders. GameStop stock slides after $1.4B debt-for-stock swap raises dilution concerns Negative Sentiment: GameStop warned that some participating noteholders could hedge their new equity positions by shorting GME, creating additional near-term selling pressure. GameStop Warns Its Own Noteholders Might Short GME Stock Negative Sentiment: The stock fell toward its lowest level since August 2024 on exceptionally heavy volume, suggesting broad investor concern over dilution and possible noteholder selling rather than a purely technical move. GameStop stock sinks to lowest level since August 2024 GameStop Profile (Free Report)

GameStop Corp. (NYSE:GME) is a global specialty retailer focused on video games, gaming consoles, consumer electronics and related accessories. The company operates a network of physical retail stores alongside an e-commerce platform, offering new and pre-owned products spanning the latest game software, hardware, collectibles and lifestyle merchandise. GameStop’s retail footprint is complemented by digital marketplaces for trade-ins and online purchases, as well as a membership program that provides exclusive content and rewards.

Originally founded in 1984 as Babbage’s in Dallas, Texas, the company adopted the GameStop name in 1999 following its merger with Software Etc.

Featured Articles Five stocks we like better than GameStop SpaceX’s First Earnings Report Could Decide Whether Shorts or Bulls Have Control Why Rare Earth Processing Could Be the Real 2027 Opportunity The S&P 493 Are Staging a Comeback—This Value ETF Offers Broad Exposure TSMC Insiders Are Buying the Pullback—But Is the Signal as Bullish as It Looks?

Receive News & Ratings for GameStop Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for GameStop and related companies with MarketBeat.com's FREE daily email newsletter.

« PREVIOUS HEADLINECalifornia State Teachers Retirement System Raises Stake in Viper Energy Inc. $VNOM

NEXT HEADLINE »California State Teachers Retirement System Purchases 14,607 Shares of Cullen/Frost Bankers, Inc. $CFR

GameStop (GME) fell 8.33% premarket after agreeing to exchange about $1.4 billion of convertible senior notes for Class A common stock in privately negotiated d

GME stock is dropping. See the chart and price action here.  GameStop’s $1.4B Note-For-Stock SwapGameStop entered privately negotiated agreements to swap roughly $400 million of its Convertible Senior Notes due 2030 and $1 billion of its Convertible Senior Notes due 2032 for shares of Class A common stock. 

No cash changes hands — the company simply retires debt by handing over equity instead. The catch is in how many shares are handed over and who’s incentivized to move the stock while that number is being calculated. 

GameStop said the share count “will be based in part on the average volume-weighted average price of the Common Stock over a 35 consecutive trading day reference period beginning on August 3, 2026, subject to a per share price floor.”

In plain terms: for the next 35 trading sessions, into early September, GME’s average price directly determines how many new shares get printed.

A Built-In Incentive to Short GMEHere is where the hedging language comes in.

GameStop explicitly warned that “some or all of the Existing Noteholders that participate in the Exchange may purchase or sell shares of Common Stock in open market transactions or enter into or unwind various derivative transactions with respect to Common Stock to hedge or unwind their investments in the Exchange Notes.” 

The company added that “these activities could increase or decrease the market price of the Common Stock or the Exchange Notes, the effect of which may be material.”

GameStop gave the warning because noteholders now have a built-in incentive to short GME or trade options against it during the VWAP window, since a lower average price could work in their favor depending on how the exchange terms are structured relative to the price floor. 

The debt exchange is expected to close around Sep. 23, 2026, meaning this dynamic has weeks to play out. 

For a stock already down double digits Monday, that’s a technical overhang worth tracking independent of the eBay headlines — and one that could keep GME choppy heading into the fall regardless of what happens with Cohen’s takeover push.

GME Stock Price Activity: GameStop stock was down 13.84% at $18.71 at the time of publication Monday, according to data from Benzinga Pro.

Photo: Shutterstock

This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Market News and Data brought to you by Benzinga APIs

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

To add Benzinga News as your preferred source on Google, click here.

Shares of GameStop fell into negative territory for 2026 for the first time today.

GRAPEVINE, Texas--(BUSINESS WIRE)--GameStop Corp. (NYSE: GME) (“GameStop”) today announced that it has agreed to exchange approximately $1.4 billion aggregate principal amount of its outstanding convertible senior notes for shares of its Class A common stock (the “Common Stock”), pursuant to privately negotiated exchange agreements (the “Exchange Agreements”) entered into with certain existing holders (the “Existing Noteholders”) of its 0.00% Convertible Senior Notes due 2030 (the “2030 Notes”).

Gamestop continues to target eBay and has amassed a near 10% stake in the business. (Photo by Justin Sullivan/Getty Images)

Getty Images

Ryan Cohen has never been afraid of taking on larger rivals. He transformed Chewy into one of America’s biggest online pet retailers, became the architect of GameStop's unlikely revival after the meme-stock frenzy, and has consistently argued that retailers need to reinvent themselves rather than simply chasing scale.

And now he has embarked on what may prove to be the most audacious takeover attempt in recent retail history.

GameStop has nearly doubled its stake in eBay to 9.8%, escalating pressure on the online marketplace after its unsolicited takeover proposal was rebuffed earlier this year, suggesting Cohen appears prepared for a prolonged battle.

According to a regulatory filing with the U.S. Securities and Exchange Commission, GameStop now owns 43.4 million eBay shares after significantly increasing its position over recent weeks. The retailer purchased 3.5 million shares before converting options covering a further 39 million shares into common stock, using cash generated from its substantial balance sheet.

The latest purchases come just weeks after GameStop disclosed a 5% economic interest in eBay alongside an unsolicited cash-and-stock proposal valuing the marketplace at approximately $57 billion.

In response, eBay's board wasted little time in dismissing the proposal. Directors described the offer as "neither credible nor attractive”, questioning both the financing package and the strategic rationale behind combining one of the world's largest online marketplaces with a specialist video game retailer whose own turnaround remains incomplete.

MORE FOR YOU

Cohen Looks Set To Push ForwardHowever, Cohen appears determined to force the issue and the GameStop chief executive has expanded his advisory team and begun discussions with some of eBay's largest institutional shareholders as he explores taking his case directly to investors in a strategy that bears the hallmarks of activist investing.

By building close to the 10% ownership threshold, GameStop has positioned itself as one of eBay's largest shareholders, giving Cohen considerably greater influence over future corporate developments even if a full acquisition never materialises.

Under his proposal, shareholders would receive an equal combination of cash and newly issued GameStop shares, while Cohen has pledged roughly $500 million of his own capital and would become chief executive of the merged company.

But funding remains the proposal's biggest obstacle. GameStop has outlined a non-binding financing commitment worth around $20 billion from TD Securities, but the facility depends upon the combined business achieving investment-grade credit status following completion.

That caveat has provoked investor scepticism because GameStop’s own market capitalization remains only around one-fifth of eBay’s, creating a large mismatch between buyer and target. Even after raising billions through equity offerings during and after the meme-stock phenomenon, questions remain over whether GameStop possesses the financial firepower or operational capability to absorb a business several times its own size.

GameStop CEO Ryan Cohen promised to cut costs and focus on long-term profitability as he continues the company's turnover. (AP Photo/Charlie Neibergall, File)

Copyright 2021 The Associated Press. All rights reserved.

Several Wall Street banks have also questioned whether credit markets would support leverage on this scale, yet Cohen insists his vision centres on creating a broader digital commerce platform capable of competing more effectively against Amazon by combining eBay’s enormous global marketplace with GameStop’s brand recognition among younger consumers.

Strategy Pays Off For eBayLikewise, eBay has invested heavily in authenticated trading cards, luxury watches, handbags and sneakers under chief executive Jamie Iannone, attempting to move beyond its reputation as simply an online auction site. Those higher-value categories have delivered stronger margins and attracted younger consumers.

GameStop claims it could eliminate approximately $2 billion in annual costs within 12 months of completing a merger, though it has yet to provide detailed breakdowns explaining where those savings would originate.

GameStop still derives much of its revenue through its thousands of physical retail stores across the U.S. and Europe, while eBay generates revenue through marketplace fees with comparatively limited physical infrastructure. In addition, GameStop has embraced aggressive cost-cutting and entrepreneurial decision-making under Cohen, while eBay has focused on disciplined execution since Iannone took over in 2020.

Indeed, since Iannone became chief executive, eBay’s market value has almost tripled as investors rewarded improvements in profitability, shareholder returns and strategic focus.

That evolution arguably strengthens its case against GameStop. If shareholders already believe eBay possesses a successful long-term strategy, there is less incentive to support a highly leveraged takeover proposal from a significantly smaller company whose own transformation remains unfinished.